Quick Review
If an e-way bill for an IGST supply but incorrectly reported CGST and SGST instead of IGST in their tax returns GSTR -3B. Consequently,
In that cases the department has issued a DRC-01 notice indicating an IGST liability due to the mismatch between the e-way bill and the return.
Under Section 77 of the CGST Act, 2017, if a registered person initially pays CGST and SGST for a supply that is later identified as an interstate supply (and therefore subject to IGST), they can correct their mistake by paying the correct IGST amount. After making the necessary adjustments, the person can apply for a refund of the CGST and SGST previously paid, in accordance with Section 54 of the CGST Act, 2017.
Section 77. Tax wrongfully collected and paid to Central Government or State Government.
(1) A Registered person who has paid the Central tax and State tax or, as the case may be, the central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.
(2) A Registered person who has paid integrated tax on a transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay any interest on the amount of central tax and State tax or, as the case may be, the central tax and the Union territory tax payable.