wrongly availing of Input tax credit in GST

[HELEN JUDE]

The Tax payer had made a purchase in the month of August 2017, from Chennai for which eligible IGST credit amounting to Rs.69751.12 was available. while filing returns the same was claimed as CGST Rs.34875.56 and SGST Rs.34875.56. Hence there was a mismatch in GSTR-2A and GSTR 3B.he was not aware while filing the annual return too. Now the DRC-07 order has been received by him demanding to pay Rs.157812.Any related judgements or case laws regarding it

AI Summary

Taxpayer Faces IGST-CGST Mistake, DRC-07 Order Issued; Experts Suggest Arguing Revenue Neutrality, Clerical Error Defense A taxpayer mistakenly claimed IGST credit as CGST and SGST, leading to a mismatch in GSTR-2A and GSTR-3B filings. The taxpayer received a DRC-07 order demanding payment of Rs. 157,812. Responses suggest there is no direct case law on this issue, but it is advised to argue on revenue neutrality grounds and consider appealing. Some experts argue it is a clerical error rather than wrong availment of ITC, suggesting the taxpayer should not face penalties for internal settlement issues between states and the center. The consensus is to pursue rectification or appeal.