Introduction:

In a recent landmark judgment, the Hon’ble Calcutta High Court addressed the contentious issue of whether Integrated Goods and Services Tax (IGST) credit needs to be reversed when mistakenly claimed instead of Central Goods and Service Tax (CGST) and State Goods and Services Tax (SGST). This ruling has significant implications for taxpayers across the country.

Facts of the Case:

M/s Cosyn Limited, the petitioner, availed IGST credit amounting to Rs. 1,50,53,298/- in February 2018. However, discrepancies arose regarding the invoices related to the claimed ITC, leading to an assessment order against the petitioner for utilizing IGST credit for payment of SGST liabilities.

Issue:

The central issue in this case revolved around whether IGST credit utilized for SGST payments should be reversed and transferred to the respective state.

Held:

The Hon’ble Calcutta High Court, in M.A.T. NO. 2411 OF 2023, held that: