IGST Section 19 of Integrated Goods and Services Tax Act, 2017 (IGST Act, 2017)-Tax wrongfully collected and paid to Central Government or State Government

The Integrated Goods and Services Tax Act, 2017

Chapter-VIII Apportionment of Tax and Settlement of Funds

Section 19: Tax wrongfully collected and paid to Central Government or State Government.

19. (1) A registered person who has paid integrated tax on a supply considered by him to be an inter-State supply, but which is subsequently held^c1 to be an intra-State supply, shall be granted refund of the amount of integrated tax so paid in such manner and subject to such conditions as may be prescribed.

(2) A registered person who has paid central tax and State tax or Union territory tax, as the case may be, on a transaction considered by him to be an intra-State supply, but which is subsequently held^c1 to be an inter-State supply, shall not be required to pay any interest on the amount of integrated tax payable.

References

Enforcement:

Enforced w.e.f. July 01, 2017 [Notification No. G.S.R. 662(E) dated 28.06.2017].

Circulars:

c1. The term “subsequently held” in section 77 of CGST Act, 2017 or under section 19 of IGST Act, 2017 covers both the cases where the inter-State or intra-State supply made by a taxpayer, is either subsequently found by taxpayer himself as intra-State or inter-State respectively or where the inter-State or intra-State supply made by a taxpayer is subsequently found/ held as intra-State or inter-State respectively by the tax officer in any proceeding. [Circular No. 162/18/2021-GST dated 25.09.2021]

c2. Refund under section 77 of the CGST Act / section 19 of the IGST Act would not be available where the taxpayer has made tax adjustment through issuance of credit note under section 34 of the CGST Act in respect of the said transaction. [Circular No. 162/18/2021-GST dated 25.09.2021]