Section 76 – Tax collected but not paid to Government
Section 76 of CGST Act, 2017 – Tax Collected but Not Paid to the Government Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 76 Section 76 is a special recovery provision which ensures that any tax collected from recipients is deposited with the Government . This section applies: Irrespective of whether tax was actually payable or not Even if tax was collected mistakenly It prevents unjust enrichment by the supplier. 2. Statutory Provision – Section 76 Section 76(1): Notwithstanding anything to the contrary contained in this Act, where a registered person has collected any amount as tax but has failed to pay the same to the Government, the proper officer shall issue a notice requiring him to show cause why the said amount should not be paid. Section 76(2): The proper officer shall issue an order within one year from the date of issue of notice after considering the representation...