Adjustment of Excess claimed IGST ITC from Short claimed CGST and SGST

[POOJA AGARWAL]

Dear Experts

One of the client has taken excess IGST ITC due to clerical error. At the same time he has claimed lesser CGST & SGST ITC due to clerical error. The department has issued SCN demanding Excess claimed ITC

Whether the assesee may take a plea that the demand of IGST ITC excess claimed may be set off against lesser claimed CGST & SGST ITCs'. Any case law, or sections that may help?

AI Summary

Client Faces Show Cause Notice for Incorrect IGST ITC Claim; Debate Over Revenue Neutrality and Repayment Necessity A client mistakenly claimed excess IGST ITC while under-claiming CGST and SGST ITCs, leading to a Show Cause Notice (SCN) from the tax department. An expert suggests that the plea to offset the excess IGST against the lesser CGST and SGST might be successful at the Tribunal stage, arguing the situation is revenue neutral. However, another expert disagrees, stating such a situation isn't revenue neutral and emphasizes the need for proper procedure. Others discuss potential defenses against the SCN, focusing on the department's allegations and possible violations of specific sections. The consensus is that excess credit must be repaid.