Section 17A of IGST Act 2017: Transfer of Certain Amounts

Provisions under Section 17A of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Transfer of Certain Amounts”, are as under:

Section 17A of IGST Act 2017: Transfer of Certain Amount (CHAPTER VIII APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS)

Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the Government shall transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time, as may be prescribed. [Refer Note 1]

Amendment History:

1. Section (17A) inserted vide Section 114 of the Finance Act, 2019 (GOI Notification dated 01/08/2019), followed with Integrated Tax Notification 1/2020 on commencement date of 01/01/2020.

Commentary on Section 17A of the IGST Act

Section 17A of the Integrated Goods and Services Tax (IGST) Act, 2017 deals with the transfer of certain amounts between electronic cash ledgers under different GST Acts. This section is significant as it outlines the procedures for transferring funds between the central and state governments in the context of Goods and Services Tax (GST) in India. Here is a commentary on the provision:

Purpose:

Section 17A aims to ensure smooth and timely transfer of funds between electronic cash ledgers maintained under different GST Acts. This provision helps maintain the proper allocation of funds between central and state governments, enabling them to manage their respective tax revenues efficiently.

Transfer of amount:

If an amount has been transferred from the electronic cash ledger under the IGST Act to the electronic cash ledger under the State Goods and Services Tax (SGST) Act or the Union Territory Goods and Services Tax (UTGST) Act, the central government is required to transfer a corresponding amount to the respective state tax account or union territory tax account.

Manner and time of transfer:

The transfer process, including the manner and time within which the amount must be transferred, is prescribed by the government. This ensures that there is a standardized procedure in place for these fund transfers, making the process more transparent and efficient.

In summary, Section 17A of the IGST Act, 2017 facilitates the appropriate transfer of funds between electronic cash ledgers under different GST Acts. This provision helps maintain a proper balance of tax revenues between the central and state governments, ensuring that the tax system operates smoothly and efficiently.

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Note: The IGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended through IGST Extension to J&K Act 2017, IGST (Amendment) Act 2018. Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023, including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective IGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.