Section 77 - Tax wrongfully collected and paid to Central Government or State Government.

Supply classification change: refund entitlement or interest waiver when transaction recharacterised between intra State and inter State.

Where a registered person pays central tax and State tax on a transaction treated as an intra State supply but later held to be inter State, the statute entitles the person to a refund of those taxes in the prescribed manner and subject to prescribed conditions. Where a registered person pays integrated tax on a transaction treated as inter State but later held to be intra State, the person is not required to pay interest on the State tax payable.