2017-18 outward case

[AK ASSOCIATES]

Crux of the case: due to ignorance and being new to GST, in 2017-18, the taxpayer had inadvertently wrongly declared our outward liabilities in GSTR-1 in IGST, CGST, SGST, and vice-versa, resulting in the demand order. As per the order dated 21.12.2023, they have to pay Rs.743 223/- towards IGST. However, due to the above wrong showing in GSTR-1, they had paid excess tax towards CGST and SGST @ 307456/- each, totaling 614913/-. Hence, fled a rectification application with a request that this point has to be reconsidered and enclose a copy of judgement dated 03.01.2024 of Hon'ble Kerala High Court in support of their defense. Given undertaking to pay the differential liability, if any after adjusting the excess paid cgst and sgst. However, the rectification application was rejected and they want to go on appeal. kindly advise.

[KASTURI SETHI]

What is the date of rejection of Rectification Application ? 

Period consumed in deciding (rejecting) Rectification Application by the department will be excluded for working out the period of limitation for filing appeal. (from the date on which application for rectification was rejected.)

2024 (12) TMI 140 - MADRAS HIGH COURT - M/S. SPK AND CO, REPRESENTED BY ITS JOINT MANAGING PARTNER VERSUS THE STATE TAX OFFICER, MUTHUKULATHUR

AI Summary

Limitation period: time spent deciding a departmental rectification application is excluded from computing appeal limitation after rejection. Taxpayer misdeclared outward supplies by interchanging IGST and CGST/SGST in GSTR-1, resulting in an IGST demand despite excess CGST and SGST payments; taxpayer sought rectification, offered to pay any residual liability after adjusting excess CGST/SGST, but the rectification was rejected. The rejection date is material because the time the department took to decide the rectification application is excluded for computing limitation for filing an appeal.