Question

XYZ paid GST wrongly under IGST instead of paying under CGST + SGST for the period July’17 to September’18. Can they adjust the same while paying current months liability by issuing credit notes or they need to again pay CGST + SGST and then claim refund of IGST wrongly paid?

Answer

In case tax is paid under wrong head, then you are required to pay the tax under correct head i.e CGST +SGST with interest and claim refund of IGST wrongly paid. The same is also clarified vide Circular 26/26/2017 dt 29-12-2017 and relevant portion is highlighted in Circular enclosed herewith. (Reply dt.11/02/2019)