Refund of IGST Paid suo moto adjusted against CGST & SGST

[Kedar Joshi]

While filing GSTR-3B for the month of January-2021, IGST is paid Rs. 11,21,200 instead of Rs. 1,21,200/-, I,e. excess paid by Rs. 10,00,000/-. Further, while filing of GSTR-3B for the month of February-2021, the said excess payment of IGST is adjusted by reporting short value of CGST and SGST liability by Rs. 5,00,000/- each.

During the GST Assessment in February-2025, the officer has pointed out the mistake and raised demand of Rs. 5,00,000/- each in CGST and SGST, the taxpayer has also paid the same through DRC-03.

Now, the taxpayer has filed an application for refund of IGST under head excess payment of IGST of Rs. 10,00,000/-. However, the officer has now rejecting the said claim of the taxpayer considering the date of payment as February-2021 i.e. date of filing of GSTR-3B, for the month of January-2021 and not February-2025, ie. Date of payment of tax under correct head in DRC-03.

Can Circular no. 162/18/2021-GST and section 77 of the CGST Act, be applied in above case?

Kindly advise.

AI Summary

Taxpayer Seeks IGST Refund After Excess Payment Adjustment, Citing Legal Provisions for Claim Validity A taxpayer mistakenly paid excess IGST of Rs. 10,00,000 in January 2021 while filing GSTR-3B and adjusted it by underreporting CGST and SGST. During February 2025 assessment, the taxpayer paid the shortfall via DRC-03. The GST officer rejected the IGST refund claim, considering the payment date as February 2021. Legal provisions support the taxpayer's refund claim, citing Section 77 of CGST Act and Circular No. 162/18/2021-GST, which allows refund within two years from correct tax payment date.