No IGST Reversal Needed for Wrong SGST/CGST Claims

Quick Summary

The Calcutta High Court has ruled that businesses do not need to reverse Integrated Goods and Services Tax (IGST) credit if it was mistakenly used to pay Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). This decision came in the case of M/s. Cosyn Limited, where the company had availed IGST credit and subsequently used it to offset their SGST liabilities.

Court :
Calcutta High Court

Brief :
The Hon'ble Calcutta High Court in the case of M/s. Cosyn Limited v. Assistant Commissioner of State Tax [M.A.T. NO. 2411 OF 2023 dated April 30, 2024] held that there is no requirement to reverse the Integrated Goods and Services Tax ("IGST") credit where the Assessee had availed IGST credit and subsequently used the same for payment of the Central Goods and Service Tax ("CGST") and the State Goods and Services Tax ("SGST"), on utilization of IGST for payment of SGST.

Citation :
M.A.T. NO. 2411 OF 2023 dated April 30, 2024

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