Input Tax Credit Claim In Wrong Head

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....nput Tax Credit Claim In Wrong Head <br> Query (Issue) Started By: - MAHTAB KHAN Dated:- 17-6-2025 Goods and Services Tax - GST <br> Got 3 Replies <br> GST<br> <br> A taxpayer inadvertently claimed Input Tax Credit pertaining to IGST-under the heads of CGST and SGST in GSTR-3B. The tax invoice was correctly reflecting IGST liability, but while filing the return, the ITC was claimed under the wrong....

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.... heads due to a clerical error.&nbsp;Will the taxpayer still be eligible to avail the benefit of ITC under section 16 of the CGST Act? --Reply By: Sadanand Bulbule The Reply: Yes, ITC  is still admissible under Section 16, if all substantive considtiions are met. There is no loss of revenue to the Government. You may seek rectification or adjust in future return, subject to time limits. Make a....

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.... proper & factual representation to the jurisidicational  GST officer. --Reply By: RaamSrinivasan Kalpathi The Reply: Kindly note that Kerala HC in the case of&nbsp;REJIMON PADICKAPPARAMBIL ALEX -&nbsp;2024 (12) TMI 399 - KERALA HIGH COURT Observed that, the GST law allows for the utilization of IGST credit towards CGST and SGST liabilities as per Section 49(5) of the CGST Act. Further, the Ce....

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....ntral Board of Indirect Taxes and Customs (CBIC) Circular No. 192/04/2023 clarified that such errors in head allocation are revenue-neutral and do not result in a loss to the exchequer. Held that, demanding repayment in such cases, where no ineligible credit was availed, was unsustainable. The appellant's actions were within the legal framework as the ITC had been validly availed, albeit under an ....

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....incorrect head, and no further recovery was justified. Kindly use this case law in the event of department notice / audit/ scrutiny --Reply By: Shilpi Jain The Reply: Courts have taken a liberal view in cases of ITC taken under the wrong head and allowed the credit without requiring reversal of the credit. They have considered ITC under the various heads to be a common pool. <br>***<br> ....

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