EXPORT FIRM MATTER

[Dilipkumar Sharma]

Dear All,

An export firm filed returns of 2022-23 under rate of 12% instead of 18%. The GSTR-1 invoice filed was under IGST Paid and as such the refund of same amount was received @12% only. The firm came under GST Audit by dept. and now the AO is asking to pay the difference of 6% of IGST tax as it was not correctly shown at the time of filing GSTR-1.

Issue is now what will happen to the tax amount if paid now ? As no revenue loss to Govt. in this matter as IGST was less paid and same amount of refund was received.

Please suggest in the matter and suggest remedy as per law if any.

AI Summary

Export Firm Faces GST Audit for Filing Error, Seeks Penalty Waiver Under Section 126, Considers Appeal Options An export firm mistakenly filed returns for 2022-23 at a 12% GST rate instead of the correct 18%, resulting in a refund at the lower rate. During a GST audit, authorities demanded payment of the 6% difference. One respondent suggested that since this is a procedural error, only a penalty under Section 125 of the CGST Act could be imposed, and recommended seeking a penalty waiver under Section 126. Another advised appealing to higher authorities or pursuing relief through the Tribunal or High Court. A practical solution proposed was to pay the difference with interest and apply for a refund.