Provisions under Section 19 of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Tax Wrongfully Collected and Paid to Central/ State Government”, are as under:
Section 19 of IGST Act 2017: Tax wrongfully collected and paid to Central Government or State Government (CHAPTER VIII – APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS)
(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 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 to be an inter-State supply, shall not be required to pay any interest on the amount of integrated tax payable.
| Note: CBEC notifies 01/07/2017 as the commencement date in respect of Sections 4 to 13, 16 to 19, 21 and 23 to 25 of the IGST Act, 2017, vide Notification 3/2017. |
Amendments History:
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Commentary on Section 19 of the IGST Act
Section 19 of the Integrated Goods and Services Tax (IGST) Act, 2017 deals with the refund and interest provisions in cases where tax has been wrongfully collected and paid to the Central or State Government. It specifically addresses two scenarios:
Inter-State supply treated as Intra-State supply: Section 19(1) of the IGST Act
Section 19(1) outlines the process for a registered person who has paid integrated tax on a supply, considering it to be an inter-State supply, but later it is determined to be an intra-State supply. In such cases, the taxpayer will be granted a refund of the integrated tax amount that was paid. The manner and conditions for the refund will be prescribed by the relevant authorities.
Intra-State supply treated as Inter-State supply: Section 19(2) of the IGST Act
Section 19(2) deals with a situation where a registered person has paid central tax and State tax (or Union territory tax, as applicable), considering a transaction to be an intra-State supply. However, later it is determined to be an inter-State supply. In this case, the taxpayer is not required to pay any interest on the amount of integrated tax payable.
The objective of Section 19 is to provide relief to taxpayers who have inadvertently paid the wrong type of tax on a supply. It ensures that they can claim refunds or are not burdened with additional interest payments when the error is discovered and rectified.
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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.
| CBIC Updates (GST) |
| Index of GST Circulars, Notifications, Press Releases, Orders, etc. issued by CBIC from 2017 and onwards along with Section-wise/ Rule-wise Text of GST Acts/ Rules: |
| CGST: CGST Act/ Definitions, CGST Rules, GST Forms |
| IGST: IGST Act/ Definitions, IGST Rules |
| UTGST: UTGST Act/ Definitions, UTGST Rules |
| GST Circulars (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| GST Instructions: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CGST Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| IGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017 |
| IGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| UT Tax/ UTGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017 |
| UT Tax/ UTGST Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| Compensation Cess Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| Compensation Cess Rate Notifications: 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CBIC Orders (CGST/ IGST/ UTGST): 2023, 2022, 2021, 2020, 2019, 2018, 2017 |
| CBIC Press Releases: 2020, 2019, 2018, 2017 |
| Note: For Official/ updated copy, please visit the CBIC website. |
In Sec 19(1) are we required to pay any interest on amount of CSGT/SGST payable?
No. In that case, Section 77(2) of the Central Goods and Services Tax Act, 2017 will be applied wherein the provisions for non-payment of interest is mentioned.
Is Time Limit of 2 years for the refund of amount paid under wrong Head is applicable?