Section 76 of GST Act: Tax collected but not paid to Government

Amended and updated notes on section 76 of CGST Act, 2017. Detail discussion on provisions and rules related to tax collected but not paid to Government.

Amended and updated notes on section 76 of CGST Act, 2017. Detail discussion on provisions and rules related to tax collected but not paid to Government.

Chapter XV (Sections 7384) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to demands and recovery. Section 76 of CGST 2017 provides for tax collected but not paid to Government.

Recently, we have discussed in detail section 75 (General provisions relating to determination of tax) of CGST Act 2017. Today, we learn the provisions of section 76 of Central GST Act 2017.

Section 76 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 76 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.XV
Chapter NameDemands and Recovery
Section No.76
Section NameTax collected but not paid to Government
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for GST Sections 73, 74 and 76:

  • Rule 121: Recovery of credit wrongly availed
  • Rule 142: Notice and order for demand of amounts payable under the Act
    • FORM GST DRC – 01: Summary of Show Cause Notice
    • FORM GST DRC – 01A: Intimation of tax ascertained as being payable under section 73(5)/74(5)
    • FORM GST DRC – 02: Summary of Statement
    • FORM GST DRC – 03: Intimation of payment made voluntarily or made against the show cause notice (SCN) or statement or intimation of tax ascertained through
    • FORM GST DRC-01A.
    • FORM GST DRC – 04: Acknowledgement of acceptance of payment made voluntarily
    • FORM GST DRC – 05: Intimation of conclusion of proceedings
    • FORM GST DRC – 06: Reply to the Show Cause Notice
    • FORM GST DRC – 07: Summary of the order
    • FORM GST DRC – 08: Summary of Rectification /Withdrawal Order
  • Rule 142A: Procedure for recovery of dues under existing laws
    • FORM GST DRC – 07A: Summary of the order creating demand under existing laws
    • FORM GST DRC – 08A: Amendment/Modification of summary of the order creating demand under existing laws

Section 76 of Central GST – Tax collected but not paid to Government1

Section 76 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.

Section 76(1) of CGST Act

Section 76(1): Notwithstanding anything to the contrary contained in any order or direction of any Appellate Authority or Appellate Tribunal or court or in any other provisions of this Act or the rules made thereunder or any other law for the time being in force, every person who has collected from any other person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not.

Section 76(2) of CGST Act

Section 76(2): Where any amount is required to be paid to the Government under sub-section (1), and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause as to why the said amount as specified in the notice, should not be paid by him to the Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act.

Section 76(3) of CGST Act

Section 76(3): The proper officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person and thereupon such person shall pay the amount so determined.

Section 76(4) of CGST Act

Section 76(4): The person referred to in sub-section (1) shall in addition to paying the amount referred to in sub-section (1) or sub-section (3) also be liable to pay interest thereon at the rate specified under section 50 from the date such amount was collected by him to the date such amount is paid by him to the Government.

Section 76(5) of CGST Act

Section 76(5): An opportunity of hearing shall be granted where a request is received in writing from the person to whom the notice was issued to show cause.

Section 76(6) of CGST Act

Section 76(6): The proper officer shall issue an order within one year from the date of issue of the notice.

Section 76(7) of CGST Act

Section 76(7): Where the issuance of order is stayed by an order of the court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of one year.

Section 76(8) of CGST Act

Section 76(8): The proper officer, in his order, shall set out the relevant facts and the basis of his decision.

Section 76(9) of CGST Act

Section 76(9): The amount paid to the Government under sub-section (1) or sub-section (3) shall be adjusted against the tax payable, if any, by the person in relation to the supplies referred to in sub-section (1).

Section 76(10) of CGST Act

Section 76(10): Where any surplus is left after the adjustment under sub-section (9), the amount of such surplus shall either be credited to the Fund or refunded to the person who has borne the incidence of such amount.

Section 76(11) of CGST Act

Section 76(11): The person who has borne the incidence of the amount, may apply for the refund of the same in accordance with the provisions of section 54.

  1. Section 76 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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