Section 77 of CGST Act

Tax wrongfully collected and paid to Central Government or State Government

• Enforced w.e.f. 1-7-2017.

Section 77 (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.

Section 77 (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.

• See rule 89 of the CGST Rules, 2017; and
• Form No. RFD- 01 and RFD- 01A of the CGST Rules, 2017.