Misclassification of supply tax treatment allows refund of wrong tax paid and removes interest on later payable tax. Misclassification of a supply between intra-State and inter-State treatment triggers a statutory mechanism for adjustment of tax paid under the wrong head. Where a registered person has paid Central tax and State tax, or Central tax and Union territory tax, on a transaction later held to be an inter-State supply, the amount so paid is refundable subject to prescribed manner and conditions. Where integrated tax has been paid on a transaction later held to be an intra-State supply, the registered person is not required to pay interest on the Central tax and State tax, or Central tax and Union territory tax, subsequently payable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Misclassification of supply tax treatment allows refund of wrong tax paid and removes interest on later payable tax.
Misclassification of a supply between intra-State and inter-State treatment triggers a statutory mechanism for adjustment of tax paid under the wrong head. Where a registered person has paid Central tax and State tax, or Central tax and Union territory tax, on a transaction later held to be an inter-State supply, the amount so paid is refundable subject to prescribed manner and conditions. Where integrated tax has been paid on a transaction later held to be an intra-State supply, the registered person is not required to pay interest on the Central tax and State tax, or Central tax and Union territory tax, subsequently payable.
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