☐ Is supplier registered? ☐ For registered, has correct rate been applied? ☐ Has exemption applicability been verified? ☐ Has collected tax been paid to Government? ☐ For over-collection, has refund framework been engaged? ☐ Has Article…
32
CGST Act · Section 32
Prohibition of unauthorised collection
Chapter VII — Tax Invoice Credit and Debit NotesCGST Act, 2017
Section 32 collection compliance — checklist (19 items)
Section 32 collection compliance — checklist (19 items)
☐ Is supplier registered?
☐ For registered, has correct rate been applied?
☐ Has exemption applicability been verified?
☐ Has collected tax been paid to Government?
☐ For over-collection, has refund framework been engaged?
☐ Has Article 265 constitutional discipline been applied?
☐ Has s. 76 recovery framework been considered?
☐ Has s. 122 penalty framework been considered?
☐ For rate-change events, has s. 14 coordination been done?
☐ Has s. 171 anti-profiteering coordination been done?
☐ Has documentary trail been preserved?
☐ Has Bharti Airtel substance-over-form discipline been applied?
☐ Has Mohit Minerals constitutional framework been applied?
☐ Has Mafatlal procedural-fairness framework been observed?
☐ Has Vatika prospective-operation been applied?
☐ Has Whirlpool framework been considered for writ remedies?
☐ Has Maneka Gandhi procedural-fairness been applied?
☐ Has the file been reviewed for audit-defensibility?
☐ Has coordination with broader compliance framework been done?
Worked examples — five live scenarios
Example 1 — Unregistered seller collecting GST
Facts: Unregistered small seller invoiced customer with 'GST 18%' line item.
Analysis: Sub-s. (1) — unregistered cannot collect tax. Sub-s. (1) breach. Section 76 recovery + s. 122 penalty cascade. Practitioner advice — unregistered seller must remit collected amount to Government + face penalty.
Result: Comprehensive cascade framework.
Example 2 — Over-collection by registered (wrong rate)
Facts: Registered taxpayer applied 18% on supply that should have been 12%.
Analysis: Sub-s. (2) breach. Over-collected tax recoverable under s. 76. Refund to recipient under s. 54 framework. Penalty under s. 122. Practitioner defence — rectification + refund coordination.
Result: Rectification + refund framework.
Example 3 — Exempt supply treated as taxable
Facts: Supply was exempt under Notification 12/2017-CT(R). Taxpayer charged 18% GST.
Analysis: Sub-s. (2) breach. Exemption not properly applied. Refund framework + rectification + potentially anti-profiteering (s. 171) interface.
Result: Complex rectification framework.
Example 4 — Article 226 challenge
Facts: Department alleges unauthorised collection. Taxpayer challenges procedurally.
Analysis: Mafatlal procedural-fairness + Whirlpool writ-jurisdiction framework. Hearing + reasoned order required. For Article 265 substantive challenge, constitutional defence framework.
Result: Procedural + substantive defence framework.
Example 5 — Rate-change event coordination
Facts: Rate reduced from 18% to 12% effective 1-Apr-2025. Taxpayer continued collecting 18% for May supplies.
Analysis: Sub-s. (2) breach (wrong rate post-change). Section 171 anti-profiteering interface (non-pass-through). Recovery + penalty cascade. Practitioner advice — coordinated rate-change discipline.
Result: Section 14 + s. 32 + s. 171 combined framework.
Planning and litigation strategy
Litigation defence
Cross-references