The Kerala High Court in November ruled that any GST mistakenly paid under one head can be adjusted under the correct head. It observed that the GST Act provides for the refund of the tax paid mistakenly under one head instead of another, like ‘SGST’ instead of ‘IGST’, but the GST Refund Rules also speak of adjustment.
It was further observed that where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment to be made in Part A of Form GST RFD-07.
