APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS [CHAPTER VIII OF THE IGST ACT, 2017]

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..... s concerned. 32.2. Section 17 of the IGST Act, 2017 prescribes the provisions for such apportionment of IGST and settlement of funds between the Central Government and the State Governments. 32.3. Section 17(1) of IGST Act, 2017 lays down that in respect of the IGST paid on the following supplies of goods and/or services, the IGST shall be apportioned: * inter-State supply to an unregistered person or to a registered person paying tax under composition scheme; * inter-State supply where the registered person is not eligible for input tax credit; * inter-State supply made in a financial year to a registered person, where he does not avail of the input tax credit within the specified period and thus the tax remains in the integrated t .....

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..... Central Government in proportion to the amount collected as SGST/UTGST by the respective State/ the Central Government during the immediately preceding financial year. 32.5. In terms of Section 17(3) of the IGST Act, 2017, the interest, penalty and compounding amount realised in connection with the IGST shall also be apportioned in the similar manner. 32.6. Section 17(4) of the CGST Act, 2017, provides that the Central Government shall transfer the amount apportioned to it to the CGST account or UTGST account, as the case may be, and the amount apportioned to the State Government(s) to the SGST account of the respective States. 32.7. As per Section 17(2A) of the IGST Act, 2017, the amount of IGST in respect of B2B supplies wherein ITC i .....

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..... tate Government. * Appropriate State means the State or Union territory where a taxable person is registered or is liable to be registered under CGST Act, 2017. 32.9. Section 19 of the IGST Act, 2017, provides that a registered person who has paid IGST on a supply considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall be granted refund of the amount of IGST so paid. A registered person who has paid CGST and SGST/UTGST on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall not be required to pay any interest on the amount of IGST payable.
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