Wrong challan payment made for CGST instead of IGST for export of goods/Services – What to do?

1.0 Introduction

Many of us have already filed or are preparing for the return to meet the deadline. Since this is the first time, taxpayers are filing returns under GST, and hence mistakes are bound to happen.

As said, we have received lots of queries on GST and we try to answer each and every query and also publish the same on our website, so that other taxpayers can also benefit from the solution.

In this article, we shall discuss the one of the query where an exporter paid CGST instead of IGST. Let us see the complete query and the possible solution.

2.0 Detailed query

We are exporter and we do not sales any item in India. We have made wrong challan and paid around Rs.560,000 in CGST instead of IGST. Is there any way to get back the wrong amount in our bank account so that I can make payment with correct code in IGST?

Or any other way as we do not have any domestic sale and hence, the excess payment of CGST will be off no use.

Can you please help me to solve this.

3.0 Possible solution

Since you have paid for the CGST instead of IGST, the cross utilization of CGST is not allowed with IGST. Therefore, first thing you should do is to repay the IGST and file the GSTR 3B. Further, since you do not have any domestic sales, hence excess payment of CGST is no off use. For that, you can claim that as a refund by filing the GST RFD 1 on the common portal.

In other words, just pay the IGST and file the return and claim the CGST paid as a refund.

4.0 Conclusion

In case you have any doubt, please email us at info@hubco.in.