Invoicing & Documents

Prohibition of unauthorised collection of tax

Section 32, CGST Act

Chapter 7 Text as on 2026-09-05 Source CBIC

Straight from CBIC

Official source, not a summary of a summary

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Amendment history

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Section 32 prohibits an unregistered person, or a composition dealer, from collecting any amount as ‘tax’, and bars anyone from collecting GST except as allowed by the Act.

What this means in practice

The parts that actually decide cases — the things a practitioner checks first.

1

A composition dealer or unregistered person who collects ‘tax’ faces recovery of the amount under section 76 with interest and a penalty equal to it.

2

Every bill of supply of a composition dealer must carry the declaration that he is not eligible to collect tax.

How this provision is built

The skeleton, clause by clause — useful when a notice cites a specific sub-clause.

(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.

The exact words of the law

344 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

Read the full provision+
* Section 32. Prohibition of unauthorised collection of tax.-

(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.

High Court cases on this section

Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.

13 more on record. Search all GST case law →

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

2017-07-01 · Commenced

Provision as originally enacted in the CGST Act, 2017 (Act 12 of 2017) and brought into force w.e.f. 01-07-2017.

Where this comes from

Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

prohibition unauthorised tax collectionsection 32

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