Question4: Fact of the Case:

1. Assesee is a Trust is having ground and auditorium which are given on rent to the general public.

2. Assessee by mistake charged IGST to the client outside state hiring ground or auditorium till 31/03/2018 (instead of CGST and SGST)

3. The corresponding clients have already taken the credit of IGST Charged by the trust.

Query

1. How to reverse the IGST tax paid to CGST and SGST.

2. How will be interest and penalty calculated.

3. What will be impact to the parties taken credit.

4. What can be other consequence of above.



Answer: As per Section 77, to rectify this situation you will have to pay correct tax i.e CGST + SGST and get the refund of IGST earlier paid.

Further it also specifies that Interest is not liable on the payment of CGST and SGST.

You can make correction in invoice in rectification column of GSTR-1 of any tax period but not later than due date of September month GSTR-1 or date of furnishing of annual return, whichever is earlier.

In the same way recipient can make rectification in the corresponding GSTR-2. (Reply dt. 05/4/2018)