Procedure to Resolve Cases of Wrong GST Paid

Prakash Matre
Prakash Matre at April 24, 2023

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This article explains procedure to be followed when wrong tax is paid by registered taxable person, wrong GST charged in the invoice, wrong GST rate charged in the invoice. Like IGST paid instead of CGST/SGST or vice versa.

The procedure is very simple, but first, it's necessary to understand what mistakes there can be.

There can be two types of  mistakes:-

  1. Interstate Supply treated as Intra-state Supply:- IGST shall be paid on Interstate supply but wrongly/mistakenly CGST/SGST is paid, in that case registered taxable person shall pay IGST and take a refund of CGST/SGST.
  2. Intra-state Supply treated as Inter-state Supply:- CGST/SGST shall be paid on Intra-state supply but wrongly/mistakenly IGST is paid, in that case also the person should pay CGST/SGST and take a Refund of IGST.

For Example:-

Mr X, a registered taxable person in Delhi has sold goods to other people in Gujrat, he shall be liable to charge IGST in his invoice from the customer and shall pay the same to the credit of the government but if by mistake charged CGST / SGST then he shall follow refund procedure (Read our article for the procedure of refund) for CGST / SGST and pay IGST to the government for this he shall not be charged to any interest or penalty but if tax is collected from customers but not paid to the credit of the government then Interest and penalty proceedings may be initiated (Read our other article for cases when such proceeding may start).

Conclusion:- There is no procedure for adjustment of payment of tax leviable on inter / intra-state transactions, one has to go for a refund of the wrong tax paid and pay the correct tax.

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