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CMA Intermediate · Direct and Indirect Taxation · Levy and Collection of CGST and IGST

Under section 32 of the CGST Act, 2017, which statement is correct regarding collection of tax?

Section 32(1) provides that a person who is not registered shall not collect any amount by way of tax on any supply of goods or services. A registered person may collect tax only in accordance with the Act and the rules, so agreement or deposit does not permit unauthorised collection.

  1. AA person who is not a registered person shall not collect any amount by way of tax in respect of any supplyCorrect
  2. BAn unregistered supplier may collect tax if the recipient agrees in writing
  3. CA registered person may collect tax at any rate he considers appropriate
  4. DAn unregistered person may collect tax provided he deposits it within thirty days

Explanation

Section 32(1) prohibits a non-registered person from collecting any amount by way of tax on any supply. Section 32(2) bars a registered person from collecting tax except in accordance with the Act and rules. Agreement or later deposit does not override this, so the other options fail.

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