Section 32 of GST – Prohibition of unauthorised collection of tax

Section 32 of GST – Prohibition of unauthorised collection of tax. Analysis of GST Section 32, this section is provide all details for Prohibition of unauthorised collection of tax under GST Act 2017. In this article you may find complete details regarding Section 32 of GST Act 2017 – Prohibition of unauthorised collection of tax, gst all sections and definitionsNow Check more details from below…..
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Section 32 of GST – Prohibition of unauthorised collection of tax

(1) A person who is not a registered person shall not collect in respect of any supply of goods or services or both any amount by way of tax under this Act.
(2) No registered person shall collect tax except in accordance with the provisions of this Act or the rules made thereunder.


Collection of tax is not a statutory right but a contractual right. The person collecting taxes acts as an agent of the Government. As such, no recipient is obliged to reimburse the supplier taxes due on the supply. At the same time, every taxable person (in case of forward charge) remains liable to deposit applicable tax to the Government.
This provision casts an obligation of each – unregistered person and registered taxable person with regard to collection of tax on supply:

  • unregistered person is not to collect tax or any sum ‘by way of’ tax; and
  • registered taxable person is to collect tax only in the manner prescribed

It is important to differentiate between the restriction placed by this provision and the contractual route necessary to recoup tax by the supplier. Only tax that is collected as ‘CGSTSGST’ or ‘IGST’ or UTGST is to be paid to the Government. Any other loss recoupment of input tax credit foregone or forfeited does not come within this restriction.
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