Section 21 of GST Act: Manner of recovery of credit distributed in excess

Amended and updated notes on section 21 of CGST Act, 2017. Discussion on provisions and rules related to manner of recovery of credit distributed in excess.

Amended and updated notes on section 21 of CGST Act, 2017. Detail discussion on provisions and rules related to manner of recovery of credit distributed in excess.

Chapter V (Sections 1621) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to input tax credit. Section 21 of CGST 2017 provides for manner of recovery of credit distributed in excess.

Recently, we have discussed in detail section 20 (Manner of distribution of credit by Input Service Distributor) of CGST Act 2017. Today, we learn the provisions of section 21 of Central GST Act 2017.

Section 21 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 21 is 1-7-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.V
Chapter NameInput Tax Credit
Section No.21
Section NameManner of recovery of credit distributed in excess
Updated 2024 EditionGST Law Book PDF

Section 21 of Central GST – Manner of recovery of credit distributed in excess1

Section 21 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.

Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 20 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest, and the provisions of section 73 or section 74, as the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered.

  1. Section 21 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎


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