SYA Homes Vs Assistant Commissioner (ST) (Madras High Court)
Madras HC Directed Appropriation of IGST Paid Under Wrong Head Towards CGST and SGST Liability Instead of Fresh Payment:
The petitioner inadvertently reported and discharged the entire GST liability of Rs.5,84,832.70 for September 2021 under the IGST head while filing GSTR-3B, instead of apportioning Rs.2,92,416.35 each towards CGST and SGST. Consequently, an order dated 17.07.2023 directed the petitioner to pay the outstanding CGST and SGST dues. The petitioner sought rectification. By rectification order dated 17.02.2026, it was held that the petitioner should first pay Rs.2,92,416.35 each towards CGST and SGST and thereafter claim refund of the Rs.5,84,832.70 erroneously paid under the IGST head.
The petitioner challenged the rectification order by filing the present writ petition. The petitioner relied on the findings in the rectification order itself, which recorded that the entire tax liability had already been discharged, though under the wrong tax head, and requested a direction to the GST authorities to transfer the amount from the IGST head to the CGST and SGST heads. Reliance was also placed on the judgment of the Kerala High Court in Saji S, Proprietor, Adithya and Ambadi Traders v. The Commissioner, State GST Department and another, order dated 12.11.2018.
