Tax collected but not paid to Govt under GST – 9 Questions Answered

Tax collected but not paid to Govt under GST – 9 Questions Answered. This article explains Tax collected but not paid to Govt as per Goods & Service Tax Act 2017 (CGST Act 2017). Deep analysis for Tax collected but not paid to Govt in GST Regime as per CGST Bill 2017, Tax wrongfully collected and paid to Central Government or State Government etc…Here you may also check GST Applicability date, Impact of GST, GST Registration, Updates related to Tax collected but not paid to Govt under GST Regime. Lets understand what is the Tax collected but not paid to Govt under GST, Applicability of GST in GST Regime, GST rates, its impact on your business and latest updates about GST Act 2017. Now check more details for Tax collected but not paid to Govt under GST Regime as per CGST Act 2017…

Tax collected but not paid to Govt under GST

Q1. Whether any amount representing as tax is collected from any other person be retained and not paid to Government?

Ans. Every person who has collected from any other person any amount representing as tax under this Act shall forthwith pay the said amount to Government, regardless of whether the supplies in respect of which such amount was collected are taxable or not.

Q2. In case the person does not deposit tax collected in contravention of Section 76, what is the course of action available to the proper officer?

Ans. The proper officer shall issue notice requiring him to show cause as to why the amount so collected as tax be paid to the Government and why a penalty equivalent to the amount so collected be imposed on him under the provisions of the Act. The proper officer shall adjudicate the matter and issue order within one year from the date of issue of the show cause notice..

Q3. In case the person does not deposit tax collected in contravention of Section 76, is the same recoverable with interest? 

Ans. Yes. In addition to the amount payable by him, the person is required to pay interest under Section 50 on the same from the date of collection of the amount till the date such amount is paid to the Government.

Q4. Is there any time limit for issue of notice under section 76 in cases where tax collected but not paid to Government?

Ans. No. Notice can be issued on detection of such cases without any time limit. Once show cause notice is issued, the proper officer shall pass the order within 1 year from the date of issue of such notice.

Q5. Whether the person who has borne the incidence of amount apply for refund of surplus left after adjustment towards tax collected, but not paid under section 76?

Ans. Yes. The person who has borne the incidence of the amount may apply for the refund of the same in accordance with the provisions of section 54

Tax wrongfully collected and paid to Central Government or State Government

(Section No: 77 of the CGST Act, 19 of IGST Act and 12 of UTGST Act)

Q6. What happens if a registered person has paid CGST and SGST or, as the case may be, CGST and UTGST on a transaction considered by him to be an intra-state supply but which is subsequently held to be an inter-state supply?

Ans. Refund of CGST and SGST or, as the case may be, CGST and UTGST shall be granted in such manner and subject to such conditions as may be prescribed.

Q7. What happens if a registered person has paid IGST on a transaction considered by him to be an inter-state supply but which is subsequently held to be an intra-state supply?

Ans. Refund of IGST (in IGST Act) shall be granted in such manner and subject to such conditions as may be prescribed.

Q8. Whether a registered person who has paid IGST on a transaction considered by him to be an inter-state supply, but which is subsequently held to be an intra-state supply is required to pay interest?

Ans. No. A registered person shall not be required to pay any interest on the amount of CGST and SGST or CGST and UTGST payable, as the case may be.

Q9. Whether a taxable person who has paid CGST and SGST or, as the case may be, CGST and UTGST on a transaction considered by him to be an intra-state supply, but which is subsequently held to be an inter-state supply is required to pay interest?

Ans. No. A registered person shall not be required to pay any interest on the amount of IGST payable.

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