GST Refund application for IGST paid instead of CGST & SGST to be filed separately

Case Details: OLA Fleet Technologies (P.) Ltd. v. Union of India - [2023] 146 taxmann.com 83 (Telangana)

Judiciary and Counsel Details

• • Ujjal Bhuyan & A. Venkateshwara Reddy, JJ.
  • Narender Dave for the Appellant.
  • B. Mukherji & K. Raji Reddy for the Respondent.

Facts of the Case

The petitioner was engaged in business of providing motor vehicles for transporting passengers on rental basis to various individuals for commercial usage located in different states. During inspection, it was found that in one transaction, it paid IGST instead of paying CGST and SGST. The department issued show cause notice to assessee to pay CGST and SGST. It filed writ petition for quashing of show cause notice issued by department and further direction for adjustment of IGST paid towards CGST and SGST.

High Court Held

The Honorable High court noted that the petitioner mapped State of Telangana as State of Andhra Pradesh in its IT system and wrongly paid IGST instead of paying CGST and SGST. As per Section 19(1) of IGST Act, a registered person who has paid IGST on a supply considered by him to be an inter-state supply, but which is subsequently held to be an intra-state supply, shall be granted refund of amount of IGST so paid in such manner and subject to such conditions as may be prescribed.

Therefore, the assessee could separately file an application for refund of IGST but could not claim adjustment of IGST with CGST and SGST as there was no provision for adjustment of erroneously paid IGST with CGST and SGST as contended. Thus, the Court directed the petitioner to comply with show cause notice and pay CGST and SGST and it may file an application under section 19(1) of IGST Act for refund of IGST paid erroneously.