GST Paid in Wrong Head: Allahabad HC Orders Fresh Consideration & Refund u/s 77 if Due [Read Order]
The impugned order and directed the authorities to reconsider the matter afresh, and to grant refund under Section 77 of the GST Act if any excess tax is found payable to the assessee.
![GST Paid in Wrong Head: Allahabad HC Orders Fresh Consideration & Refund u/s 77 if Due [Read Order]](https://images.taxscan.in/h-upload/2026/01/15/2119878-gst-paid-wrong-head-allahabad-hc-orders-fresh-consideration-refund-us-77-if-due-taxscan.webp "GST Paid in Wrong Head: Allahabad HC Orders Fresh Consideration & Refund u/s 77 if Due [Read Order]")
The Allahabad High Court (Lucknow Bench) ordered a reconsideration of the matter where GST ( Goods and Services Tax ) was paid under CGST and SGST head instead of IGST ( Integrated Goods and Services Tax ). In this matter, the assessee - M/s Ocean E Mart filed a writ petition. The GST payer challenged the order issued under Section 73 read with Section 161 of the GST Act for...
The Allahabad High Court (Lucknow Bench) ordered a reconsideration of the matter where GST ( Goods and Services Tax ) was paid under CGST and SGST head instead of IGST ( Integrated Goods and Services Tax ).
In this matter, the assessee - M/s Ocean E Mart filed a writ petition. The GST payer challenged the order issued under Section 73 read with Section 161 of the GST Act for AY 2018-19.
The petitioner sought quashing of the order and a direction to settle the dispute by treating the tax deposited under CGST and SGST as payment towards IGST, and to refund the excess amount along with interest.
The petitioner argued that the tax was actually required to be deposited under the head IGST, but due to a mistake, it had deposited the tax under CGST and SGST.
It was argued that the assessee was made aware of the issue by the department's notice under Section 73(3) of the GST Act. The department, however failed to consider the payments already made and proceeded to impose liability for non-payment of IGST.
The petitioner’s counsel, Adv. Yogeshwar Sharan Srivastava and Adv. Umakant Yadav further contended that once the CGST and SGST payments are taken into account, it had already paid more than what was required, making it eligible for refund.
The petitioner, to support his arguments, stated the Kerala High Court ruling in Saji S, Proprietor v. Commissioner, State GST Department, where similar relief was granted in cases involving tax paid under the wrong head.
The State submitted that there is no mechanism to directly transfer the tax paid under CGST and SGST into the IGST head. However, the department concurred with the submission of the petitioner before the Court that the petitioner had indeed paid tax, though under the wrong head.
The division bench of Shekhar B. Saraf and Manjive Shukla quashed the impugned order and directed the authorities to reconsider the matter afresh, and to grant refund under Section 77 of the GST Act if any excess tax is found payable to the assessee.
The petition was disposed of.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
