The GST Appellate Tribunal, Bengaluru Bench (“GSTAT”) in Commissioner of Central GST, Bengaluru v. M G Automobiles Sales and Services [Appeal No. APL/43/BUR/2026 dated October 08, 2026] dismissed the Revenue’s appeal and upheld the order of the First Appellate Authority setting aside the demand of CGST and SGST along with interest and penalty on the ground that the assessee had adjusted excess IGST, arising from an erroneous payment of output tax on credit notes, against its CGST and SGST liability, and held that such cross-head adjustment, though procedurally incorrect, was bona fide and revenue neutral during the first year of GST implementation and could not justify a fresh demand.
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