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Section 12 of the UTGST Act, 2017

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GST›UTGST Act, 2017

At a glance

Entitlement and conditions

Section 12(1)The refund route concerns a registered person who paid central tax and Union territory tax on a transaction considered intra-State but subsequently held inter-State. The prescribed manner and conditions govern the refund.
Section 12(2)Where a registered person paid integrated tax on a transaction considered inter-State but subsequently held intra-State, the subsection removes interest on the corresponding central tax and Union territory tax.

Procedure, powers and definitions

Section 12The law does not settle what constitutes a transaction being subsequently held to have the other supply classification.

Section 12 deals with tax paid using an intra-State or inter-State classification that is subsequently held to be incorrect. It provides a prescribed refund route where central tax and Union territory tax were paid on a supply later held inter-State. In the reverse direction, it provides interest relief on the corresponding central tax and Union territory tax.^[1]

Quick facts

Section 12, UTGST Act, 2017

Tax wrongfully collected and paid to Central Government or Union territory Government

Provision
Act	Union Territory Goods and Services Tax Act, 2017
Section title	Tax wrongfully collected and paid to Central Government or Union territory Government
Related provisions
Rules	Rule 89 of the CGST Rules, 2017
Sections	11, 13
Structure 12(1)Intra-State payment subsequently inter-State 12(1)Refund amount and prescribed conditions 12(2)Inter-State payment subsequently intra-State interest relief
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]

Text

The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.^[1] The Act as published in the Gazette of India is the legal source.

Section 12, verbatim (show)

Section 12. Tax wrongfully collected and paid to Central Government or Union territory Government.

(1) A registered person who has paid the central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.

(2) A registered person who has paid integrated tax on a transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay any interest on the amount of the central tax and the Union territory tax payable.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.

Intra-State payment subsequently inter-State 12(1)

Questions to answer on the file6 questions

Is the person registered under incorporated CGST25?
Does the person hold a Unique Identity Number?
Which pair of taxes was paid on this transaction: Central tax and State tax or Central tax and Union territory tax?
Did this person originally treat the transaction as intra-State?
Was the transaction subsequently treated as inter-State by the relied-on holding?
Does the actual later act or instrument constitute the required subsequent holding?

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Refund amount and prescribed conditions 12(1)

Questions to answer on the file4 questions

What central-plus-UT amount was actually paid on this transaction?
What refund amount is proposed for that same tax payment?
Does the application follow the prescribed UT12 refund manner?
Are the actual prescribed refund conditions satisfied?

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Inter-State payment subsequently intra-State interest relief 12(2)

Questions to answer on the file7 questions

Is the person registered under incorporated CGST25?
Does the person hold a Unique Identity Number?
Was integrated tax actually paid on this transaction?
Did the person originally treat the transaction as inter-State?
Was the transaction subsequently treated as intra-State by the relied-on holding?
Does the actual later act or instrument constitute the required subsequent holding?
Which tax pair is now payable on that intra-State transaction: Central tax and State tax or Central tax and Union territory tax?

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Provisions connected to Section 12
Provision	Connection	Words that tie them
Rule 89 of the CGST Rules, 2017	this provision prescribed refund dependency Rule 89 of the CGST Rules, 2017	12(1) "in such manner and subject to such conditions as may be prescribed"

Circulars and notifications

No circular or notification in the CBIC repository is recorded as citing this section.

Unsettled questions

The words of section 12 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.

The same holding question applies in the mirror directions of IGST section 19. The same holding question applies under UTGST section 12.
The same holding question applies in the mirror directions of IGST section 19. The same holding question applies under UTGST section 12.

See also

Rule 89 of the CGST Rules, 2017: application for refund of tax, interest, penalty, fees or any other amount
Section 11 of the UTGST Act, 2017: officers required to assist proper officers
Section 13 of the UTGST Act, 2017: recovery of tax

References

Central Board of Indirect Taxes and Customs. "Section 12. Tax wrongfully collected and paid to Central Government or Union territory Government". Union Territory Goods and Services Tax Act, 2017, CBIC tax information portal. Retrieved 17 September 2026.

External links

UTGST Act, 2017, Section 12 on the CBIC tax information portal