alleryStart learning →A supplier collects tax but does not deposit it. Must it pay the Government even if the supply was exempt?
AYes, even if exempt
BNo, if supply is exempt
COnly on a court order
DOnly after one year
Answer & Solution
Correct answer: A. Yes, even if exempt
Section 76(1) obliges anyone who collected an amount as tax to pay it forthwith, whether or not the supply was taxable.
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