Reclassification of supply: refund entitlement for wrongly paid central and State taxes and no interest on State tax reclassification.

If a transaction paid as an intra-State supply is later held to be an inter-State supply, the registered person is entitled to a refund of the central and State taxes paid subject to prescribed conditions; if a transaction paid as an inter-State supply is later held to be an intra-State supply, the registered person who paid integrated tax need not pay interest on the State tax payable after reclassification.

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