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<h1>Supply classification determines refund entitlement and interest liability when a transaction's intra State or inter State status is reclassified.</h1> Where a transaction is reclassified from intra State to inter State, the registered person is entitled to a refund of central tax and Union territory tax paid, subject to prescribed conditions. Where a transaction is reclassified from inter State (integrated tax paid) to intra State, the registered person is not required to pay interest on the central tax and Union territory tax that become payable.
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