Section 77 - Tax wrongfully collected and paid to Central Government or State Government
Section 77 - Handling Wrongful Tax Payments
Section 77 addresses situations where a registered person incorrectly categorizes a supply as intra-State or inter-State for tax purposes and pays the wrong type of tax. If a registered person pays both Central and State taxes believing a transaction to be an intra-State supply, but it is later determined to be an inter-State supply, they are entitled to a refund for the taxes paid. The refund process will follow specific conditions and procedures set by the authorities. On the other hand, if a registered person pays integrated tax on a transaction they thought was an inter-State supply, but it turns out to be an intra-State supply, they are not liable to pay any interest on the central and state taxes that are due. This section ensures that taxpayers are not penalized for honest mistakes in determining the nature of their transactions, providing a mechanism for correction and refund without additional financial burden.
Note: It is an AI generated summary for reference purpose only.
77. 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.
