Refund of Tax paid under wrong head – Controversy prevails

In the abundance of decisions taken in the recently held 45th GST Council Meeting, one of the important proposal put forward was to remove the ambiguity regarding procedure and time limit for filing refund application in case a taxpayer pays the tax under wrong head e.g. a registered person pays CGST and SGST on a transaction considered by him to be in intra state supply and which is subsequently held to be inter-state supply and vice versa. Taking care of the proposal put forth by the 45th GST Council meeting, CBIC has added Sub rule (1A) to Rule 89 of the CGST Rules, 2017 through Notification No. 35/2021-Central tax dated 14th September 2021 which is detailed below: Read more ...