Section 77 – Tax Wrongly Collected and Paid to the Government
Section 77 of CGST Act, 2017 – Tax Wrongly Collected and Paid to the Government Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Objective of Section 77 Section 77 provides relief to a registered person who has wrongly paid CGST and SGST on a transaction which was subsequently held to be an inter-State supply . It prevents double taxation and removes hardship caused due to wrong classification of supply. 2. Statutory Provision – Section 77 Section 77(1): A registered person who has paid central tax and State 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 entitled to a refund of the amount of central tax and State tax paid. Section 77(2): The registered person shall be liable to pay integrated tax on such supply, but no interest shall be payable on the amount of integrated tax payable. 3. When Does Section 77 Apply? Secti...