Section 77 of GST – Tax wrongfully collected and paid to Central Government or State Government. Everything you want to know about GST Section 77. In this section you may find all details for “Tax wrongfully collected and paid to Central Government or State Government” as per GST Act 2017. Detailed Analysis of GST Section 77 of GST Act 2017. We Provide Complete Details for All GST Section’s and In this article you may find all details for GST Section 77.
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Section 77 of GST – Tax wrongfully collected and paid to Central Government or State Government
(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.
Related Provisions of the Statute
| Section or Rule | Description |
| Section 54. | Refund of tax |
Analysis of this section
Introduction
This provision deals with a situation when CGST/SGST or CGST/UTGST is paid on any inter-state supply. Further also it covers interest implication a situation where IGST is paid on transaction of intra-state supply.
Analysis
- This provision deals with a situation where a taxable person wrongly pays CGST/SGST or CGST/UTGST on the transaction treating it as intra-State supply, but which is subsequently held to be inter-State supply. Upon payment of IGST on such transaction, the CGST/SGST or CGST/UTGST will to be refunded The refund of such CGST/SGST or CGST/UTGST would be granted subject to such conditions as may be prescribed in this regard. Further, interest is not required to be paid on the IGST payable in terms of Section 19 (2) of the IGST Act
- If a taxable person wrongly pays IGST by treating a supply as inter-State supply, which is subsequently held to be intra-State supply, interest is not required to be paid on the CGST/SGST or CGST/UTGST payable. The refund of such IGST would be granted subject to such conditions as may be prescribed in this regard in terms of Section 19(1) of the IGST Act.
Please note that Jurisdiction to demand for CGST (and SGST) is contained in section 77(1) whereas jurisdiction to demand IGST is contained in section 19(1) of IGST Act. And relief from payment of interest on CGST-SGST is allowed under section 77(2) whereas relief from payment of interest on IGST is allowed under section 19(2) of IGST Act.
Frequently Asked Questions
What is the remedy available when tax is paid wrongly as CGST/SGST and subsequently the supply is considered as inter-State supply attracting IGST?
Refund can be claimed by the taxable person who has paid CGST/SGST or CGST/UTGST on payment of IGST subject to such conditions as may be prescribed.
Is interest payable on CGST/SGST or CGST/UTGST, when IGST was wrongly paid on the transaction of intra-State supply?
When IGST was wrongly paid on intra-State supply, it is not required to pay any interest on the amount so paid when CGST/SGST or CGST/UTGST becomes payable.
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One of my client mistakenly paid IGST and filed GSTR3B and GSTR1, Later it is found that he need to pay cgst & SGST. So he uploaded credit note and uploaded same invoice again by paying CGST and SGST. Since there is no sales after that he is not able to adjust IGST balance of the credit note. Please let me know can he claim refund under section 77.