GSTR1 Wrong Filling Due to Technical Error

[Krisha Shah]

For Year 2020-2021 My Client Has Issues Invoice Under IGST & Party Is Also Belongs To Other State But While Filling GSTR-1 Due To Technical Error Some Invoices Are Filed Under SGST/CGST Head However In 3B return The Correct Amount Is Showing (Without Error)

Now Tax Officer Wants To Ignore Error Any What Us To Pay Difference & Don't Want To Refund Excess Amount.

Help !!!

[KASTURI SETHI]

(i) No need to pay differential amount since there is no revenue loss to Govt. IGST is also shared between Centre and States/U.T.s.

(ii)   SAME transaction cannot be taxed more than once------ held by  Bangalore CESTAT, Chennai CESTAT, Ahmedabad CESTAT.

[Shivam Shah]

You Have 1 More Option :

Pay Tax & Take Refund As per Circular : 162-18-2021.

4.3 Application of sub-rule (1A) of rule 89 read with section 77 of the CGST Act / section 19 of the IGST Act is explained through following illustrations.

A taxpayer “A” has issued the invoice dated 10.03.2018 charging CGST and SGST on a transaction and accordingly paid the applicable tax (CGST and SGST) in the return for March, 2018 tax period. The following scenarios are explained hereunder:

Q : Proper officer or adjudication authority or appellate authority of “A” has held the transaction as an inter-State supply and accordingly, “A” has paid the IGST in respect of the said transaction on 10.11.2022 i.e. after issuance of notification No. 35/2021-Central Tax dated 24.09.2021

Ans : Since “A” has paid the correct tax on 10.11.2022, in terms of rule 89 (1A) of the CGST Rules, the last date for filing refund application in FORM GST RFD-01 would be 09.11.2024 (two years from the date of payment of tax under the correct head, i.e. integrated tax)

[Krisha Shah]

Can Any 1 Verify ?

[Shilpi Jain]

When the tax is paid as IGST whether the PoS has been mentioned wrongly. So tax must have gone to the wrong State.

Irrespective of this, the fact that the rectification/revision of this mistake is now not possible in the hands of the return filer, ideally the taxpayer should not be put into trouble.

You should take the notice and fight wherein you can take a plea that the department should rectify the mistake in GSTR-1 and the appropriate State gets the tax. This will be a very long process. Maybe tribunal (if it is formed and the case gets listed) could give relief, else only at the High court level.

Else you could pay the tax and go for refund of the IGST already paid. Ensure your documentation is in place and once you pay the right tax with proper POS your time limit for 2 years for claiming refund, will start therefrom.

AI Summary

GST misclassification remedies include paying correct tax then claiming refund or seeking rectification under refund rules. When interstate supplies were incorrectly reported under intra state tax heads in GSTR 1 but GSTR 3B showed the correct tax paid, the operative options are to rely on the principle that a transaction cannot be taxed twice where there is no revenue loss, or to pay tax under the correct head and claim refund under statutory refund rules; remedial steps include seeking departmental rectification of GSTR 1, preserving documentation, and, if necessary, pursuing appellate remedies while noting refund time limit consequences.