My CA filed gst to a wrong state

[Sasidhar D]

Dear Sir,

SBI is my tenent who pays monthly rent with input GST tax.

My CA has been filing my gst returns for wrong sbi gst ID in Telangana instead of correct sbi gst vendor ID of Andra Pradesh.

I did not receive any notice from official GST department. However, my tenent, sbi has put a bank lien and is about to recover the gst error amounts paid to Telengana since 2022.

My tenent, sbi, did not send any notices from 2022 regarding this gst filing error. Two weeks ago, sbi sent me the following notice.

'We hereby inform you that you have submitted monthly invoices with your GST 37AFFPD0364L2ZH on our Bank GST 37AAACS8577K1ZO towards the proportionate payment of monthly rent of SBILD Tirupati since 29.01.2022 to till date. Based on the invoices submitted by you, we have paid the rent along with the GST amount for the above period. Of late, it is informed by our Corporate Centre, we have not received any Input Tax Credit from your GST 37AFFPD0364L2ZH. We have verified the GSTR-2A returns and did not find any GST filed on our Bank GST 37AAACS8577K1ZO for the above period and we found that you have filed the GST returns with wrong GST 36AAACS8577K1ZQ. As per GST guidelines, our Bank is entitled to claim the 50% Input Tax Credit from the Government on the GST amount paid to vendor. Hence you are advised to pay the tax amount of Rs. 4,92,883/- within one week to our SBI LD Tirupati which is 50% of the GST amount Rs. 9,85,765/- paid to you from 29.01.2022 up to 31.03.2024 as per the invoice dates. You are also advised to verify the invoices from 01.04.2024 to till date and rectify GST Returns as per the invoices with the mentioned GST number 37AAACS8577K1ZO of our bank which enable us to avail the input tax credit.'

Questions:

1. Now that, I have paid twice my gst returns ( once wrongly to Telangana state) and now, second time, SBI is about to collect this gst error amount for second time.

What are my options (solutions) to resolve this issue.

I also do not mind hiring a good gst consultant who can help me with this issue.

Trillion thanks for your input.

[Shilpi Jain]

For FY 24-25 you can amend your GSTR-1 to mention the correct supplier GSTIN and that should be enough.

For other years, pls check whether the TS registration of SBI has taken ITC. If they have taken then ask them to reverse.

Also where is the property located? what is the PoS that you have considered for this transaction - additional facts required.

Consider for the past to apply for refund. This can be advised based on further facts.

[KASTURI SETHI]

Dear Querist,

(i) Peruse Board's Circular Nos. 183/15/2022-GST dated 27.12.22 and 193/05/2023-GST dated 17.07.23. Read full contents thoroughly.

(ii) Ministry of Railways (Railway Board) Letter No. TCR/1078/2017/25 dated 3.4.2018 (Will be helpful)

(iii) The following judgements will be very very helpful :-

(a) 2024 (7) TMI 1442 - PATNA HIGH COURT - Kamladityya Construction Pvt. Ltd.

(b) 2023 (11) TMI 1012 - KERALA HIGH COURT

(c) 2023 (10) TMI 927 - ALLAHABAD HIGH COURT

(d) 2023 (8) TMI 308 - GUJARAT HIGH COURT

(e) 2023 (1) TMI 499 - KARNATAKA HIGH COURT

(f) 2022 (11) TMI 323 - JHARKHAND HIGH COURT

[Sasidhar D]

Dear Shilpi Jain ji,

Greetings. Trillion thanks for taking your valuable time in responding to my query on the forum.

FY 24-25, GSTR-1 amended with correct supplier GSTIN and issue is resolved for FY 24-25.

I have asked SBI if they have taken ITC in Telangana from 22-24. SBI did not providing any clarify on this matter.

Pos is located in Tirupati, Andra Pradesh.

We have made an error in my gst filings and paid to sbi gstid in Telangana.

I hope to have answered all your questions.

Lastly, sbi is about to collect the gst error amount from 2022 to 24 (via bank lien) Rs. 4,92,883. 

Question is Andra Pradesh GST board potentially can give me a notice in the future while I paid my SGST (by error) to Telangana instead of Pos in Tirupati, Andra Pradesh. 

I have already paid once (may be an error to a wrong TS state), now, SBI is taking second payment. I could potentially get a 3rd notice from AP GST board on the same issue. 

I seek your expert option to protect myself and possibly get refund for the paid gst taxes to TS.

Thank you again for your insight on this matter.

Infinite gratitude!!!

[Shilpi Jain]

If SBI has already taken credit - ask them to trfr to the correct branch.

If they have not taken credit - you have no recourse unless they have not informed you of this error in the past by when you could have rectified it. Possibility of legal proceedings against SBI can be seen. But amount is not too huge.

Dept notice issue - u want to avoid this go for refund of wrong tax by paying the right tax.

[KASTURI SETHI]

On request of one of the visitors of TMI, I am posting full text of the abovementioned case laws :-

2024 (7) TMI 1442 - PATNA HIGH COURT - KAMLADITYYA CONSTRUCTION PVT. LTD. Versus STATE OF BIHAR

 

[KASTURI SETHI]

2023 (10) TMI 927 - ALLAHABAD HIGH COURT - SHREE KRISHNA TRADERS Versus STATE OF U.P.

 

[KASTURI SETHI]

2023 (8) TMI 308 - GUJARAT HIGH COURT - SOHILBHAI SDDIQBHAI AADMANI Versus SUPERINTENDENT OF CENTRAL GOODS & SERVICES TAX

2023 (1) TMI 499 - KARNATAKA HIGH COURT - WIPRO LTD. Versus ASSISTANT COMMISSIONER OF CENTRAL TAXES, BENGALURU

 

 

[KASTURI SETHI]

MAHALAXMI INFRA CONTRACT LTD. Versus GST COUNCIL - 2022 (11) TMI 323 - JHARKHAND HIGH COURT

 

AI Summary

Wrong GSTIN filings: rectify returns, seek tenant ITC reversal or refund, and preserve evidence for tax authority challenges. Amend current GSTR-1 to state the correct supplier GSTIN; verify whether the tenant has availed Input Tax Credit in the incorrect state and, if so, request the tenant to reverse or transfer the ITC. For prior periods, consider filing refund claims or rectifying historical returns where statutory mechanisms permit, supported by invoices and Point of Supply documentation. If the tenant has already recovered amounts via lien, assess commercial or legal remedies and engage a GST consultant to coordinate rectification and defend against potential departmental notices.