Section 77 of the CGST Act, 2017 — Payment of IGST instead of CGST and SGST–-- The petitioner sought a direction to the respondents for adjustment of the IGST paid by the petitioner towards CGST and SGST. The petitioner is engaged in the business of providing passenger transport motor vehicles on rental basis to various individuals for commercial usage. Through inadvertence, petitioner mapped the State of Telangana as the State of Andhra Pradesh in its IT system. Since the location of the petitioner is in the State of Telangana and the location of the driver being in the State of Andhra Pradesh, the IT system of the petitioner determined the nature of supply to be that of inter-state supply, though the transaction was very much within the State. The respondent directed that the petitioner was required to pay CGST and SGST and a SCN was issued on 23.01.2021. This Court, by order dated 23.02.2021, had issued notice and also granted interim stay. The respondent submitted that petitioner may file an application for refund of the IGST as there is no provision for adjustment of IGST with CGST and SGST. The court observed that calling upon the respondents to adjust IGST paid by the petitioner with CGST and SGST would amount to adopting a procedure, which is not provided under the relevant statute. The petitioner should comply with the SCN and pay the CGST and SGST amount within a period of two months. At the same time, petitioner would be at liberty to file appropriate application under Section 19(1) of the IGST Act for refund of the IGST amount erroneously paid by it.

Held that:- The Hon’ble High Court directed that after compliance to the SCN and once such an application is filed for refund, respondents No.5 and 6 shall take up the said application for refund and complete the process within a period of two months from the date of receipt of the refund application.