GST paid under wrong head by mistake can be transferred to the right head—Kerala High Court


Case of Saji S Vs Commissioner, State Tax Department reported in 2018-TIOL-162-HC-KERALA-GST


Petitioner, a registered dealer, had purchased goods from Chennai - While transporting the goods to Kerala, the same were detained while in transit by the Assistant State Tax Officer - based on the demand made, the consignor paid tax and penalty but the remittance was made under the head 'SGST' ? - Since the remittance should have been made under the head IGST, the authorities refused to release the goods, hence this writ petition came to be filed.

Decision of high court

Section 77 of the GST Act, 2017 provides for the refund of the tax paid mistakenly under one head instead of another, however, Rule 4 of the GST Refund Rules speaks of adjustment - Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07 - Under these circumstances, High Court does not find any difficulty for the respondent officials to allow the petitioner's request and get the amount transferred from the head 'SGST' to 'IGST' - it is inequitable for the authorities to let the petitioner suffer on the count that such transfer may take some time - Second respondent directed to release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty which already stood remitted under the 'SGST' is transferred to the head 'IGST' - Petition disposed of.