Sumo Motors Limited, a registered person, while filing monthly returns for the months from August, 2019 to March, 2020, made payments of CGST and SGST in a wrong head considering one of its customers supply to be an Intr

Answer 4(b) As per Section 77 of CGST Act, a registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed. As per Rule 89(1A) such application can be filed before the expiry of a period of two years from the date of payment of the tax on the inter-State supply. Such application is filed electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner. Refer to the case of Gajraj Vahan (P.) Ltd. (Petitioner) vs. State of Jharkhand (Respondent); High Court of Jharkhand: May 10, 2023. In the given case the Gajraj Vahan (P.) Ltd. (Petitioner) made payment in a wrong head and there was no dispute regarding the same. However, its claim for refund was rejected by the authority. It was held that the application for a refund under section 77 for the payment made in the wrong head cannot be rejected on the grounds of limitation, vide CBIC Notification issued 35/2021 dated 24.09.2021. Thus, in the given case, rejection of refund by Adjudicating Authority is not justified as decided in the above case law.