Section 32 protects customers from being charged a "tax" that is not owed or will not reach the Government.
Key points
- Under section 32 of the CGST Act, 2017 a person who is not registered must not collect any amount by way of GST.
- A registered person may collect tax only in accordance with the Act and rules — so composition taxpayers and suppliers of exempt goods may not charge it.
- Any amount collected as tax but not paid to the Government must be paid over under section 76.
The provisions
32(1)–(2)No unauthorised collection of tax
Statutory text
(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.
*Enforced w.e.f. 1st July, 2017.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Can an unregistered person charge GST?
- No. Section 32(1) of the CGST Act prohibits it, and any amount collected must be paid to the Government under section 76.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Collecting tax in breach of this section is an offence and attracts penalty under section 122; and any amount so collected must be deposited with the Government under section 76, whether or not the supply was taxable.