CGST Section 77: Tax Wrongfully Collected and paid to Central/ State Government

Provisions under Section 77 of the CGST Act 2017 relating to “Tax Wrongfully Collected and paid to Central Government or State Government”:

Section 77: Tax Wrongfully Collected and paid to Central Government or State Government (CHAPTER XV: DEMANDS AND RECOVERY) [*1]

(1) A registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.

(2) A registered person who has paid integrated tax on a transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay any interest on the amount of central tax and State tax or, as the case may be, the Central tax and the Union territory tax payable.

Notes (History of Amendments in Bare Text):

1. CGST Section 77 introduced vide GOI Notification dated 12/04/2017, followed with CBEC Notification 9/2017 on commencement date of 01/07/2017.