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Procedure to Resolve Cases of Wrong GST Paid

Updated on December 22nd, 2018 in GST

This article explains procedure to be followed when wrong tax is paid by registered taxable person. Like IGST paid instead of CGST/SGST or vice versa.

The procedure is very simple, but first its necessary to understand what mistake there can be.

There can be two types of  mistakes:-

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

For Example:-

Mr X, a registered taxable person in Delhi has sold goods to other person in Gujrat, he shall be liable to charge IGST in his invoice from the customer and shall pay the same to the credit of government but if by mistake charged CGST / SGST then he shall follow refund procedure (Read our article for 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 refund of wrong tax paid and pay the correct tax .

Comments 5

Rohit Makkar

February 18, 2018

There is one more possibility of making such mistake. That is when, within Intra-state GST computation, CGST and SGST are having different figures and but by mistake, these payments are interchanged.

CA Ruchika Tulsyan

February 19, 2018

Practically it is not possible because rate of tax is same in all the cases of CGST & SGST.


February 28, 2018

XYZ registered taxable company sold goods to ABC company. XYZ has charged 18% instead of 5% for 3 months. Now ABC company made payment with 5% tax. How to claim 13% of tax excess paid.

Arun Kumar

March 17, 2018

Pay 5% GST again and Claim 18%


June 23, 2018

If we paid IGST other head instead of interest on IGST… How we can take refund….?

Comments are closed.