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

Excess IGST ITC set-off against short CGST/SGST is contested; repayment procedure and input credit defences govern the dispute
Whether excess IGST ITC may be offset against under claimed CGST and SGST is disputed: some advise a set off plea as revenue neutral and contest limitation, while others insist excess credit must be repaid through prescribed procedure. Recommended defences include challenging the departmental reconciliation and invoking input tax credit eligibility and time limit grounds; however, the prevailing practical position presented is that proper procedural reversal is required rather than unilateral set off.