Tax collected but not paid to Government, Sec 76 of CGST Act,2017

 

Section 76 of CGST Act,2017 Tax collected but not paid to Government

 

The below post explains about Tax collected but not paid to Government under section 76 of CGST Act,2017.

 

Section 76 of CGST Act, 2017 explains Tax collected but not paid to Government as below: (The amendments if any will also be updated here soon).

 

The extract of Section 76 of CGST Act,2017 quoted below:

 

76  Tax collected but not paid to Government

 

76. (1) Notwithstanding anything to the contrary contained in any order or direction

of any Appellate Authority or Appellate Tribunal or court or in any other provisions of this

Act or the rules made thereunder or any other law for the time being in force, every person

Tax collected but not paid to Government, Sec 76 of CGST Act,2017who has collected from any other person any amount as representing the tax under this Act,

and has not paid the said amount to the Government, shall forthwith pay the said amount to

the Government, irrespective of whether the supplies in respect of which such amount was

collected are taxable or not.

(2) Where any amount is required to be paid to the Government under

sub-section (1), and which has not been so paid, the proper officer may serve on the person

liable to pay such amount a notice requiring him to show cause as to why the said amount as

specified in the notice, should not be paid by him to the Government and why a penalty

equivalent to the amount specified in the notice should not be imposed on him under the

provisions of this Act.

(3) The proper officer shall, after considering the representation, if any, made by the

person on whom the notice is served under sub-section (2), determine the amount due from

such person and thereupon such person shall pay the amount so determined.

(4) The person referred to in sub-section (1) shall in addition to paying the amount

referred to in sub-section (1) or sub-section (3) also be liable to pay interest thereon at the

rate specified under section 50 from the date such amount was collected by him to the date

such amount is paid by him to the Government.

(5) An opportunity of hearing shall be granted where a request is received in writing

from the person to whom the notice was issued to show cause.

(6) The proper officer shall issue an order within one year from the date of issue of the

notice.

 

 

(7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal,

the period of such stay shall be excluded in computing the period of one year.

(8) The proper officer, in his order, shall set out the relevant facts and the basis of his

decision.

(9) The amount paid to the Government under sub-section (1) or sub-section (3) shall

be adjusted against the tax payable, if any, by the person in relation to the supplies referred

to in sub-section (1).

(10) Where any surplus is left after the adjustment under sub-section (9), the amount

of such surplus shall either be credited to the Fund or refunded to the person who has borne

the incidence of such amount.

(11) The person who has borne the incidence of the amount, may apply for the refund

of the same in accordance with the provisions of section 54.

 

The above information clarifies about Tax collected but not paid to Government under section 76 of CGST Act,2017.  

 

If you have any comments about Section 76 of CGST Act, 2017 explaining Tax collected but not paid to Government, share below your thoughts:

 

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