Mistakenly Paid GST Amount (IGST or CGST, SGST) for Inter or Intra-state Now Refundable

The Central Board of Indirect Taxes and Customs (CBIC) mentioned that the amount of CGST, SGST, or IGST improperly filed for intra-State or inter-State shall be refunded in 2 years.

The board has obtained representations sought for clarification upon the problems towards the refund of the tax which is filed mistakenly as mentioned in section 77(1) of the CGST Act 2017 along with section 19(1) of the IGST Act 2017. For a complete solution to the implementation of the provision the board practicing the powers given by section 168(1) of the CGST act clears the problems in detail.

Section 77 of CGST Act, 2017 or under section 19 of IGST Act, 2017 includes both the cases in which the inter-state intra-State supply build through the assessee is either seen through the assessee himself as an intra-State or inter-State correspondingly or which the inter-state or intra-State supply created through assessee is consequently seen or revealed as intra-State or inter-State individually via tax officer in any action. As per the refund claims beneath the stated section can be availed through the assessee in dual mentioned cases given through the assessee furnish the needed tax amount under the right authority.

Beneath section 77 of CGST Act / Section 19 of IGST Act, 2017 the refund can be availed prior to the expiry of 2 years from the payment date of tax beneath the right authority that integrated tax filed for the later conducted inter-State supply, or central and state tax towards the intra-State supply carried further. But in various cases in which the assessee has furnished the payment in the right authority prior to the issue date of notification No.35/2021-Central Tax dated 24.09.2021, the refund application beneath section 77 of the CGST Act/ section 19 of the IGST Act can be furnished prior to the lapse of 2 years from the issuance date of the stated notification that is from 24th Sept 2021.

Rule 89(1A) of CGST rules is subjected to section 19 of the IGST act in which the assessee has filed the IGST on the particular transaction which is further ruled as intrastate supply and the assessee files CGST and SGST on the supposed transaction. Any refund applications furnished whether due or disposed of prior to issuing the notification No.35/2021-Central Tax on 24th Sept 2021 will encounter through the provision of rule 89 (1A) of the CGST Rules, 2017.

The refund beneath section 77 of the CGST Act/section 19 of the IGST Act is not available in which the assessee has adjusted the taxes via issuance of the credit note beneath section 34 of the CGST Act for the specified transactions.