Manner of recovery of credit distributed in excess
Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.
Section 21 of the Central Goods and Services Tax Act, 2017 deals with manner of recovery of credit distributed in excess. Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 20 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest, and the The Act was enacted on 12 Apr 2017.
Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 20 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest, and the provisions of section 73 or section 74 1[or section 74A], as the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered.
Section 21, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 20 Manner of distribution of credit by Input Service Distributor
- s. 73 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts
- s. 74 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts
- s. 74A Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
Referred to by 1
Made under this section, and citing it
11 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- 41/2020-Central Tax G.S.R 275(E)Notification 2021
- Notification No. 35/2020 -Central Tax dated 03.04.2020Notification 2020
- Notification No. 40/2020 -Central Tax dated 05.05.2020Notification 2020
- Notification No. 46/2020 -Central Tax dated 09.06.2020Notification 2020
- Notification No. 47/2020 -Central Tax dated 09.06.2020Notification 2020
- Notification No. 55/2020 -Central Tax dated 27.06.2020Notification 2020
- Notification No. 56/2020 -Central Tax dated 27.06.2020Notification 2020
- Notification No. 65/2020 -Central Tax dated 01.09.2020Notification 2020
- Notification No. 66/2020 -Central Tax dated 21.09.2020Notification 2020
- Notification No. 09/2017 – Central Tax dated 28.06.2017Notification 2017
- Seeks to notify Goods and Services Tax Settlement of Funds Rules, 2017Notification 2017
Another 4 instruments name this provision in its title or its text without being made under it.
Questions about Section 21
What does Section 21 of the Central Goods and Services Tax Act deal with?
Section 21 of the Central Goods and Services Tax Act is headed "Manner of recovery of credit distributed in excess". Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 20 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest, and the
How do I find court cases under Section 21 of the Central Goods and Services Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 21, section 21 CGST Act, section 21 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 21 of the Central Goods and Services Tax Act, and has it changed?
Its own text turns on section 20 (Manner of distribution of credit by Input Service Distributor), section 73 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts), section 74 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts), section 74A (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there are 11: most recently 41/2020-Central Tax G.S.R 275(E) (2021), then Notification No. 35/2020 -Central Tax dated 03.04.2020 (2020), and 9 more.
When was Section 21 of the Central Goods and Services Tax Act enacted?
Section 21 of the Central Goods and Services Tax Act, cited as CGST Act 21, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5109 words
- 142. Miscellaneous transitional provisions1966 words
- 140. Transitional arrangements for input tax credit1883 words
- 54. Refund of tax1858 words
- 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc1647 words
- 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward1299 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.