Prohibition of unauthorised collection of tax
Section 32, CGST Act
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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.
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.
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.
The exact words of the law
344 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(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.
GUNNURU SATYA RAMA MURTHY v. Assistant Commissioner (ST)(INT),
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Sri Hari Raju Penmatsa v. The Commercial Tax Officer And Another
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M/s.Raghavendra Traders, v. Commercial Tax Officer,
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M/s.Sunbeam Speciality Alloys Limited v. The Assistant Commissioner (ST) LTU and another
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M/s.Mahasethu Infra Projects Pvt. Ltd., v. The Commercial Tax Officer
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M/s.Mahasethu Infra Projects Pvt. Ltd v. The Commercial Tax Officer
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M/s.Mahasethu Infra Projects Pvt. Ltd v. The Commercial Tax Officer
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M/s.Mahasethu Infra Projects Pvt. Ltd v. The Commercial Tax Officer
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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.
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