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<h1>Tax refund entitlement applies when a supply is recharacterised as inter state, with specific refund and interest consequences.</h1> If a registered person pays central and State tax treating a transaction as intra State but it is later held inter State, the person is entitled to a refund of those taxes in the prescribed manner and subject to prescribed conditions. If integrated tax was paid treating a transaction as inter State but it is later held intra State, the registered person is not required to pay interest on the State tax amount determined to be payable.
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