What happens when Intra-State Sale is Wrongly Treated as Inter-State Sale and the tax is paid under…
What happens when Intra-State Sale is Wrongly Treated as Inter-State Sale and the tax is paid under the wrong head?
This scenario occurs when a taxable person pays IGST on an intra-state supply transaction which he has mistakenly treated as an inter-state supply. Ideally, for an intra-state supply, the tax collected should be CGST/SGST instead of IGST.
To rectify the situation, the person concerned will have to pay CGST/SGST and get the refund of the amount paid as IGST.
A relief to the taxpayers in this regards is that no interest will need to be paid when the taxpayer pays the correct tax later on. Penalty will not apply in these scenarios.
This scenario occurs when a taxable person pays IGST on an intra-state supply transaction which he has mistakenly treated as an inter-state supply. Ideally, for an intra-state supply, the tax collected should be CGST/SGST instead of IGST.
To rectify the situation, the person concerned will have to pay CGST/SGST and get the refund of the amount paid as IGST.
A relief to the taxpayers in this regards is that no interest will need to be paid when the taxpayer pays the correct tax later on. Penalty will not apply in these scenarios.
