The Hon’ble Karnataka High Court in M/s. GR Tech Services Pvt. Ltd. v. Assistant Commissioner of Commercial Taxes (Audit) & Ors. [Writ Petition No. 15670 of 2026 (T-RES) dated June 03, 2026] allowed the writ petition in part, thereby quashing the Adjudication Order, the Order-in-Appeal, and the consequential demand issued in Form GST DRC-13, and held that where an assessee has inadvertently discharged IGST on supplies which were subsequently held to be intra-State supplies, the tax paid under the wrong head ought to be adjusted against the liability arising under the correct head in terms of Section 77(2) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) read with Rule 92 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”), and the assessee cannot be fastened with the liability to pay either tax or interest or penalty. Accordingly, the matter was remanded back to the original authority for passing a fresh order.
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