Manipur Goods and Services Tax Act, 2017
No. 2/29/2017-Leg/L Dated:- 14-6-2017 Manipur SGST
GST – States
Manipur SGST
Manipur SGST
GOVERNMENT OF MANIPUR
SECRETARIAT: LAW & LEGISLATIVE AFFAIRS DEPARTMENT
NOTIFICATION
Imphal, June 14, 2017
No. 2/29/2017-Leg/L : The following Act of the Legislature, Manipur which received assent of the Governor of Manipur on June 14,2017 is hereby published in the Official Gazette:
THE MANIPUR GOODS AND SERVICES TAX ACT, 2017
(Manipur Act No. 3 of 2017)
AN
ACT
to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the State of Manipur and the matters connected therewith or incidental thereto.
BE it enacted by Legislature of Manipur in the Sixty-eighth Year of the Republic of India as follows:
CHAPTER I
PRELIMINARY
Short title, extent and commencement.
(1) This Act may be called the Manipur Goods and Services Tax Act, 2017.
(2) It extends to the whole of Manipur
(3) It shall
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on intra-State
supply of goods or services or both by the State of Manipur and
the matters connected therewith or incidental thereto.
BE it enacted by Legislature of Manipur in the Sixty-eighth Year
of the Republic ofIndia as follows:-
CHAPTER I
PRELIMINARY
(1)
This Act may be called the Manipur Goods and Services Tax
Act, 2017.
(2)
It extends to the whole of Manipur
(3)
It shall come into force on such date as the State Government
may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different
provisions of this Act and any reference in any such provisions to
the commencement of this Act shall be construed as a reference to
the coming into force of that provision.
Short title, extent and
commencement.
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2.
In this Act, unless the context otherwise requires,-
(1) “actionable claim” shall have the same meaning as
assigned to it in section 3 of the Transfer of Property
Act, 1882;
(2)
“address of deliver
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f all taxable
supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies,
exports of goods or services or both and inter-State supplies of
persons having the same Permanent Account Number, to be
computed on all India basis but excludes central tax, State tax,
Union territory tax, integrated tax and cess;
(7) “agriculturist” means an individual or a Hindu Undivided
Family who undertakes cultivation of land-
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by
hired labour under personal supervision or the personal
supervision of any member of the family;
(8) “Appellate Authority” means an Authority appointed or
authorised to hear appeals and referred to in section 107;
(9) “Appellate Tribunal” means the Goods and Services Tax
Appellate Tribunal referred to in section 109;
(10) “appointed day” means the date on which the provisions of
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rised representative” means the representative as
referred to under section 116;
(16) “Board” means the Central Board of Excise and Customs
constituted under the Central Boards of Revenue Act, 1963;
(17) “business” includes-
(a) any trade, commerce, manufacture, profession, vocation,
adventure, wager or any other similar activity, whether or
not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or
incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a),
whether or not there is volume, frequency, continuity or
regularity of such transaction;
(d) supply or acquisition of goods including capital goods
and services in connection with commencement or
closure of business;
(e) provision by a club, association, society, or any such body
(for a subscription or any other consideration) of the
facilities or benefits to its members;
(f) admission, for a consideration, of persons to any
prem
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f customers for the goods or services;
(d) the methods used to distribute the goods or supply of
services; and
(e) the nature of regulatory environment (wherever
applicable), including banking, insurance or public
utilities;
(19) “capital goods” means goods, the value of which is capitalised
in the books of accounts of the person claiming the input tax
credit and which are used or intended to be used in the course
or furtherance of business;
(20) “casual taxable person” means a person who occasionally
undertakes transactions involving supply of goods or services
or both in the course or furtherance of business, whether as
principal, agent or in any other capacity, in the taxable territory
where he has no fixed place of business;
(21) “central tax” means the central goods and services tax levied
under section 9 of the Central Goods and Services Tax Act;
(22) “cess” shall have the same meaning as assigned to it in the
Goods and Services Tax
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ble person
to a recipient consisting of two or more taxable supplies of
goods or services or both, or any combination thereof, which
are naturally bundled and supplied in conjunction with each
other in the ordinary course of business, one of which is a
principal supply;
Illustration: Where goods are packed and transported with
insurance, the supply of goods, packing materials, transport and
insurance is a composite supply and supply of goods is a principal
supply.
(31) “consideration” in relation to the supply of goods or services or
both includes-
(a) any payment made or to be made, whether in money
or otherwise, in respect of, in response to, or for the
inducement of, the supply of goods or services or both,
whether by the recipient or by any other person but shall
not include any subsidy given by the Central Government
or a State Government;
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(b) the monetary value of any act or forbearance, in respect
of, in response to, or for the inducement of, th
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nt basis, under a contract, for a period exceeding
three months with periodic payment obligations and includes
supply of such services as the Government may, subject to
such conditions, as it may, by notification, specify;
(34) “conveyance” includes a vessel, an aircraft and a vehicle;
(35) “cost accountant” means a cost accountant as defined in clause
(c) of sub-section (1) of section 2 of the Cost and Works
Accountants Act, 1959;
(36) “Council” means the Goods and Services Tax Council
established under article 279A of the Constitution;
(37) “credit note” means a document issued by a registered person
under sub-section (1) of section 34;
(38) “debit note” means a document issued by a registered person
under sub-section (3) of section 34;
(39) “deemed exports” means such supplies of goods as may be
notified under section 147;
(40) “designated authority” means such authority as may be notified
by the Commissioner;
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(41) “document” includ
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ax or which may be exempt from tax
under section 11, or under section 6 of the Integrated Goods
and Services Tax Act, and includes non- taxable supply;
(48) “existing law” means any law, notification, order, rule or
regulation relating to levy and collection of duty or tax on goods
or services or both passed or made before the commencement
of this Act by the Legislature or any authority or person
having the power to make such law, notification, order, rule or
regulation;
(49) “family” means,€•
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the
person if they are wholly or mainly dependent on the
said person;
(50) “fixed establishment” means a place (other than the registered
place of business) which is characterised by a sufficient degree
of permanence and suitable structure in terms of human and
technical resources to supply services, or to receive and use
services for its ow
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Economic Zone and other
Maritime Zones Act, 1976, and the air space above its territory
and territorial waters;
(57) “Integrated Goods and Services Tax Act” means the Integrated
Goods and Services Tax Act, 2017;
(58) “integrated tax” means the integrated goods and services tax
levied under the Integrated Goods and Services Tax Act;
(59) “input” means any goods other than capital goods used or
intended to be used by a supplier in the course or furtherance
of business;
(60) “input service” means any service used or intended to be used
by a supplier in the course or furtherance of business;
(61) “Input Service Distributor” means an office of the supplier of
goods or services or both which receives tax invoices issued
under section 31 towards the receipt of input services and
issues a prescribed document for the purposes of distributing
the credit of central tax, State tax, integrated tax or Union
territory tax paid on the said services to a supplier of
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e supply of services” shall have the meaning as
assigned to it in section 8 of the Integrated Goods and Services
Tax Act;
(66) “invoice” or “tax invoice” means the tax invoice referred to in
section 31;
(67) “inward supply” in relation to a person, shall mean receipt of
goods or services or both whether by purchase, acquisition or
any other means, with or without consideration;
(68) “job work” means any treatment or process undertaken by a
person on goods belonging to another registered person and
the expression “job worker” shall be construed accordingly;
(69) “local authority” means-
(a) a “Panchayat” as defined in clause (d) of article 243 of the
Constitution;
(b) a “Municipality” as defined in clause (e) of article 243P of
the Constitution;
(c) a Municipal Committee, a Zilla Parishad, a District Board,
and any other authority legally entitled to, or entrusted
by the Central Government or any State Government
with the control or management
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in absence of such places, the location of the usual place
of residence of the recipient;
(71) “location of the supplier of services” means,-
(a) where a supply is made from a place of business for
which the registration has been obtained, the location of
such place of business;
(b) where a supply is made from a place other than the place
of business for which registration has been obtained (a
fixed establishment elsewhere), the location of such fixed
establishment;
(c) where a supply is made from more than one establishment,
whether the place of business or fixed establishment, the
location of the establishment most directly concerned
with the provisions of the supply; and
(d) in absence of such places, the location of the usual place
of residence of the supplier;
(72) “manufacture” means processing of raw material or inputs in
any manner that results in emergence of a new product having
a distinct name, character and use and the term “manufacturer”
shall be constru
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rrency, cheque, promissory note, bill of exchange, letter of
credit, draft, pay order, traveller cheque, money order, postal
or electronic remittance or any other instrument recognized
by the Reserve Bank of India when used as a consideration
to settle an obligation or exchange with Indian legal tender of
another denomination but shall not include any currency that
is held for its numismatic value;
(76) “motor vehicle” shall have the same meaning as assigned to it
in clause (28) of section 2 of the Motor Vehicles Act, 1988;
(77) “non-resident taxable person” means any person who
occasionally undertakes transactions involving supply of
goods or services or both, whether as principal or agent or in
any other capacity, but who has no fixed place of business or
residence in India;
(78) “non-taxable supply” means a supply of goods or services or
both which is not leviable to tax under this Act or under the
Integrated Goods and Services Tax Act or unde
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udesۥ
(a) an individual;
(b) a Hindu undivided family;
18 of 2013
(c)
a company;
(d)
a firm;
(e)
(f)
a Limited Liability Partnership;
an association of persons or a body of individuals,
whether incorporated or not, in India or outside India;
(g) any corporation established by or under any Central Act,
State Act or Provincial Act or a Government company as
defined in clause (45) of section 2 of the Companies Act,
2013;
(h) anybody corporate incorporated by or under the laws of
a country outside India;
a co-operative society registered under any Å‚aw relating
to cooperative societies;
(i)
(j)
a local authority;
(k) Central Government or a State Government;
(1)
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society as defined under the Societies Registration Act,
1860;
(m) trust; and
(n) every artificial juridical person, not falling within any of
the above;
(85) “place of business” includes-
(a)
a place from where the business is ordinarily carried on,
and includes a warehouse,
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supply forming part of that composite
supply is ancillary;
(91) “proper officer” in relation to any function to be performed
under this Act, means the Commissioner or the officer of the
State tax who is assigned that function by the Commissioner;
(92) “quarter” shall mean a period comprising three consecutive
calendar months, ending on the last day of March, June,
September and December of a calendar year;
(93) “recipient” of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods
or services or both, the person who is liable to pay that
consideration;
(b) where no consideration is payable for the supply of goods,
the person to whom the goods are delivered or made
available, or to whom possession or use of the goods is
given or made available; and
(c) where no consideration is payable for the supply of a
service, the person to whom the service is rendered, and
any reference to a person to whom a supp
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ipient
of supply of goods or services or both instead of the supplier of
such goods or services or both under sub-section (3) or sub-
section (4) of section 9,or under sub-section (3) or sub-section
(4) of section 5 of the Integrated Goods and Services Tax Act;
(99) “Revisional Authority” means an authority appointed or
authorised under this Act for revision of decision or orders
referred to in section 108;
(100) “Schedule” means a Schedule appended to this Act;
(101) “securities” shall have the same meaning as assigned to it in
clause (h) of section 2 of the Securities Contracts (Regulation)
Act, 1956;
(102) “services” means anything other than goods, money and
securities but includes activities relating to the use of money
or its conversion by cash or by any other mode, from one
form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged;
(103) “State” means the State of Manipur;
(10
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ny transmission or reception of signs, signals, writing,
images and sounds or intelligence of any nature, by wire, radio,
visual or other electro-magnetic means;
(111) “the Central Goods and Services Tax Act” means the Central
Goods and Services Tax Act, 2017;
(112) “turnover in State” or “turnover in Union territory” means
the aggregate value of all taxable supplies (excluding the value
of inward supplies on which tax is payable by a person on
reverse charge basis) and exempt supplies made within a State
or Union territory by a taxable person, exports of goods or
services or both and inter-State supplies of goods or services or
both made from the State or Union territory by the said taxable
person but excludes central tax, State tax, Union territory tax,
integrated tax and cess;
(113) “usual place of residence” means-
(a) in case of an individual, the place where he ordinarily
resides;
(b) in other cases, the place where the person is incorporated
or otherwise legall
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potential suppliers are either
indicated on the instrument itself or in related documentation,
including the terms and conditions of use of such instrument;
(119) “works contract” means a contract for building, construction,
fabrication, completion, erection, installation, fitting out,
improvement, modification, repair, maintenance, renovation,
alteration or commissioning of any immovable property
wherein transfer of property in goods is involved in the
execution of such contract;
(120) words and expressions used and not defined in this Act but
defined in the Integrated Goods and Services Tax Act, the
Central Goods and Services Tax Act, the Union Territory
Goods and Services Tax Act and the Goods and Services Tax
(Compensation to States) Act shall have the same meanings as
assigned to them in those Acts.
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CHAPTER II
ADMINISTRATION
3.
The Government shall, by notification, specify the following
classes of officers for the purposes of this Act, namely:-
Officers un
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subject to such conditions as may be specified,
have jurisdiction over the whole of the State or over such
local areas as the Commissioner may, by order, specify.
(1)
Subject to such conditions and limitations as the
Commissioner may impose, an officer of State tax may
exercise the powers and discharge the duties conferred
or imposed on him under this Act.
(2) An officer of State tax may exercise the powers and
discharge the duties conferred or imposed under this
Act on any other officer of State tax who is subordinate
to him.
Appointment of officers.
Powers of officers.
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6.
(3) The Commissioner may, subject to such conditions and
limitations as may be specified in this behalf by him,
delegate his powers to any other officer subordinate to
him.
(4) Notwithstanding anything contained in this section, an
Appellate Authority shall not exercise the powers and
discharge the duties conferred or imposed on any other
officer of State tax.
(1) Without prejudice to the
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ore an officer
appointed under the Central Goods and Services Tax
Act.
Authorisation of
officers of central tax as
proper officer in certain
circumstances.
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7.
(1)
CHAPTER III
LEVY AND COLLECTION OF TAX
For the purposes of this Act, the expression “supply”
includes-
(a) all forms of supply of goods or services or both
such as sale, transfer, barter, exchange, license,
rental, lease or disposal made or agreed to be made
for a consideration by a person in the course or
furtherance of business;
(b) import of services for a consideration whether or
not in the course or furtherance of business;
(c)
the activities specified in Schedule I, made or
agreed to be made without a consideration; and
(d) the activities to be treated as supply of goods or
supply of services as referred to in Schedule II
(2) Notwithstanding anything contained in sub-section (1),-
(a) activities or transactions specified in Schedule III;
or
(b) such activities or transactions undertaken b
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x.
Scope of supply.
Tax liability on composite
and mixed supplies.
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9.
(1) Subject to the provisions of sub-section (2), there shall
be levied a tax called the Manipur Goods and Services
Tax on all intra-State supplies of goods or services or
both, except on the supply of alcoholic liquor for human
consumption, on the value determined under section 15,
and at such rates, not exceeding twenty per cent., as may
be notified by the Government, on the recommendations
of the Council and collected in such manner as may be
prescribed and shall be paid by the taxable person.
(2) The State tax on the supply of petroleum crude, high speed
diesel, motor spirit (commonly known as petrol), natural
gas and aviation turbine fuel, shall be levied with effect
from such date as may be notified by the Government on
the recommendations of the Council.
(3) The Government may, on the recommendations of the
Council, by notification, specify categories of supply of
goods or services or
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commerce operator as if he
is the supplier liable for paying the tax in relation to the
supply of such services:
Provided that where an electronic commerce operator does
not have a physical presence in the taxable territory, any person
representing such electronic commerce operator for any purpose in
the taxable territory shall be liable to pay tax:
Levy and Collection.
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Provided further that where an electronic commerce operator
does not have a physical presence in the taxable territory and he
does not have a representative in the said territory, such electronic
commerce operator shall appoint a person in the taxable territory
for the purpose of paying tax and such person shall be liable to pay
tax.
10. (1) Notwithstanding anything to the contrary contained in
this Act but subject to the provisions of sub-sections (3)
and (4) of section 9, a registered person, whose aggregate
turnover in the preceding financial year did not exceed
fifty lakh rupees may opt to
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ct;
(c) he is not engaged in making any inter-State outward
supplies of goods;
(d) he is not engaged in making any supply of goods
through an electronic commerce operator who is
required to collect tax at source under section 52;
and
(e) he is not a manufacturer of such goods as may be
notified on the recommendations of the Council:
Composition levy.
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43 of 1961
Provided that where more than one registered person are having the
same Permanent Account Number (issued under the Income-tax
Act 1961), the registered person shall not be eligible to opt for the
scheme under sub-section (1) unless all such registered persons opt
to pay tax under that sub-section.
(3)
(4)
(5)
The option availed of by a registered person under sub-section
(1) shall lapse with effect from the day on which his aggregate
turnover during a financial year exceeds the limit specified
under sub-section(1).
A taxable person to whom the provisions of sub-section (1)
apply shall not collect any
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interest so to do, it may, on the
recommendations of the Council, by special order in
each case, under circumstances of an exceptional nature
to be stated in such order, exempt from payment of tax
any goods or services or both on which tax is leviable.
(3) The Government may, if it considers necessary or
expedient so to do for the purpose of clarifying the scope
or applicability of any notification issued under sub-
section (1) or order issued under sub-section (2), insert
an explanation in such notification or order, as the case
may be, by notification at any time within one year of
issue of the notification under sub-section (1) or order
under sub-section (2), and every such explanation shall
have effect as if it had always been the part of the first
such notification or order, as the case may be,
Power to grant exemption
from tax.
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(4) Any notification issued by the Central Government, on
the recommendations of the Council, under sub-section
(1) of section
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) the date on which the supplier receives the payment
with respect to the supply:
Provided that where the supplier of taxable goods receives an
amount up to one thousand rupees in excess of the amount indicated
in the tax invoice, the time of supply to the extent of such excess
amount shall, at the option of the said supplier, be the date of issue of
invoice in respect of such excess amount.
Explanation 1.- For the purposes of clauses (a) and (b), “supply”
shall be deemed to have been made to the extent it is covered by the
invoice or, as the case may be, the payment.
Explanation 2.- For the purposes of clause (b), “the date on which
the supplier receives the payment” shall be the date on which the
payment is entered in his books of account or the date on which the
payment is credited to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable
to be paid on reverse charge basis, the time of supply
shall
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ection (2),sub-section (3)
or sub-section (4), the time of supply shall-
(a) in a case where a periodical return has to be filed,
be the date on which such return is to be filed, or
(b) in any other case, be the date on which the tax is
paid.
(6) The time of supply to the extent it relates to an addition
in the value of supply by way of interest, late fee or
penalty for delayed payment of any consideration shall
be the date on which the supplier receives such addition
(1)
in value.
The liability to pay tax on services shall arise at the time
of supply, as determined in terms of the provisions of
this section.
(2) The time of supply of services shall be the earliest of the
following dates, namely:-
(a) the date of issue of invoice by the supplier, if the
invoice is issued within the period prescribed under
sub-section (2) of section 31 or the date of receipt
of payment, whichever is earlier; or
(b) the date of provision of service, if the invoice is not
issued with
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he payment is credited
to his bank account, whichever is earlier.
In case of supplies in respect of which tax is paid or liable to
be paid on reverse charge basis, the time of supply shall be the
earlier of the following dates, namely:-
(a) the date of payment as entered in the books of account of
the recipient or the date on which the payment is debited
in his bank account, whichever is earlier; or
(b) the date immediately following sixty days from the date
of issue of invoice or any other document, by whatever
name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time
of supply under clause (a) or clause (b), the time of supply shall be
the date of entry in the books of account of the recipient of supply:
Provided further that in case of supply by associated
enterprises, where the supplier of service is located outside India,
the time of supply shall be the date of entry in the books of account
of the recipient of suppl
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of tax
in respect of goods or services or both, shall be determined in
the following manner, namely:-
(a)
in case the goods or services or both have been supplied
before the change in rate of tax,-
Change in rate of tax
in respect of supply of
goods or services.
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(i)
where the invoice for the same has been issued and
the payment is also received after the change in
rate of tax, the time of supply shall be the date of
receipt of payment or the date of issue of invoice,
whichever is earlier; or
(ii) where the invoice has been issued prior to the
change in rate of tax but payment is received after
the change in rate of tax, the time of supply shall be
the date of issue of invoice; or
(iii) where the payment has been received before the
change in rate of tax, but the invoice for the same
is issued after the change in rate of tax, the time of
supply shall be the date of receipt of payment;
(b) in case the goods or services or both have been supplied
after the chan
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unts of the supplier or the date on which the payment
is credited to his bank account, whichever is earlier.
15. (1)
(2)
The value of a supply of goods or services or both shall
be the transaction value, which is the price actually paid
or payable for the said supply of goods or services or
both where the supplier and the recipient of the supply
are not related and the price is the sole consideration for
the supply.
The value of supply shall include-
Value of taxable supply.
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(a) any taxes, duties, cesses, fees and charges levied
under any law for the time being in force other than
this Act, the Central Goods and Services Tax Act
and the Goods and Services Tax (Compensation to
States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in
relation to such supply but which has been incurred
by the recipient of the supply and not included in
the price actually paid or payable for the goods or
services or both;
(c) inc
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entered into at or before the time of such
supply and specifically linked to relevant invoices;
and
(ii) input tax credit as is attributable to the discount on
the basis of document issued by the supplier has
been reversed by the recipient of the supply.
Where the value of the supply of goods or services or both
cannot be determined under sub-section (1), the same shall be
determined in such manner as may be prescribed.
(5) Notwithstanding anything contained in sub-section (1) or
sub-section (4), the value of such supplies as may be notified
by the Government on the recommendations of the Council
shall be determined in such manner as may be prescribed.
30
Explanation:- For the purposes of this Act,-
(a) persons shall be deemed to be “related persons” if –
(b)
(c)
i. such persons are officers or directors of one another's
businesses;
ii.
iii.
iv.
V.
vi.
such persons are legally recognized partners in business;
such persons are employer and employee;
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s business and the said amount shall
be credited to the electronic credit ledger of such person.
(2) Notwithstanding anything contained in this section, no
registered person shall be entitled to the credit of any
input tax in respect of any supply of goods or services or
both to him unless,-
(a) he is in possession of a tax invoice or debit note
issued by a supplier registered under this Act,
or such other tax paying documents as may be
prescribed;
(b) he has received the goods or services or both.
Explanation:- For the purpose of this clause, it shall be deemed that
the registered person has received the goods where the goods are
delivered by the supplier to a recipient or any other person on the
direction of such registered person, whether acting as an agent or
otherwise, before or during movement of goods, either by way of
transfer of documents of title to goods or otherwise;
(c)
subject to the provisions of section 41, the tax
charged in respect of such supply ha
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that the recipient shall be entitled to avail of the
credit of input tax on payment made by him of the amount towards
the value of supply of goods or services or both along with tax
payable thereon.
(3) Where the registered person has claimed depreciation on
the tax component of the cost of capital goods and plant
and machinery under the provisions of the Income-tax
Act, 1961, the input tax credit on the said tax component
shall not be allowed.
(4) Are glistered person shall not be entitled to take input tax
credit in respect of any invoice or debit note for supply of
goods or services or both after due date of furnishing of
the return under section 39 for the month of September
following the end of financial year to which such
invoice or invoice relating to such debit note pertains or
furnishing of the relevant annual return, whichever is
earlier.
17. (1) Where the goods or services or both are used by the
registered person partly for the purpose of any business
an
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g
services by way of accepting deposits, extending loans or
advances shall have the option to either comply with the
provisions of sub-section (2), or avail of, every month,
an amount equal to fifty per cent. of the eligible input tax
credit on inputs, capital goods and input services in that
month and the rest shall lapse:
Apportionment of credit
and blocked credits.
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33
Provided that the option once exercised shall not be withdrawn
during the remaining part of the financial year:
Provided further that the restriction of fifty percent shall not
apply to the tax paid on supplies made by one registered person
to another registered person having the same Permanent Account
Number.
(5) Notwithstanding anything contained in sub-section (1)
of section 16 and sub-section (1) of section 18, input tax
credit shall not be available in respect of the following,
namely:-
(a) motor vehicles and other conveyances except when
they are used-
(i) for making the following taxabl
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es
or both of a particular category is used
by a registered person for making an
outward taxable supply of the same
category of goods or services or both or
as part of a taxable composite or mixed
supply; and
(iv) travel benefits extended to employees
on vacation such as leave or home travel
concession.
(c) works contract services when supplied for
construction of an immovable property (other than
plant and machinery) except where it is an input
service for further supply of works contract service;
(d) goods or services or both received by a taxable
person for construction of an immovable property
(other than plant or machinery) on his own account
including when such goods or services or both are
used in the course or furtherance of business.
Explanation:-For the purposes of clauses (c) and (d), the expression
“construction” includes re-construction, renovation, additions
or alterations or repairs, to the extent of capitalization, to the said
immovable property;
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remises.
(1) Subject to such conditions and restrictions as may be
prescribed-
(a) a person who has applied for registration under
this Act within thirty days from the date on which
he becomes liable to registration and has been
granted such registration shall be entitled to take
credit of input tax in respect of inputs held in stock
and inputs contained in semi-finished or finished
goods held in stock on the day immediately
preceding the date from which he becomes liable
to pay tax under the provisions of this Act;
(b) a person who takes registration under sub-section
(3) of section 25 shall be entitled to take credit of
input tax in respect of inputs held in stock and
inputs contained in semi-finished or finished goods
held in stock on the day immediately preceding the
date of grant of registration;
(c) where any registered person ceases to pay tax
under section 10, he shall be entitled to take credit
of input tax in respect of inputs held in stock,
inputs contai
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espect of any supply of goods
or services or both to him after the expiry of one year from the
date of issue of tax invoice relating to such supply.
(3) Where there is a change in the constitution of a registered
person on account of sale, merger, demerger, amalgamation,
lease or transfer of the business with the specific provisions for
transfer of liabilities, the said registered person shall be allowed
to transfer the input tax credit which remains unutilised in
his electronic credit ledger to such sold, merged, demerged,
amalgamated, leased or transferred business in such manner
as may be prescribed.
(4) Where any registered person who has availed of input tax credit
opts to pay tax under section 10 or, where the goods or services
or both supplied by him become exempt absolutely, he shall
pay an amount, by way of debit in the electronic credit ledger
or electronic cash ledger, equivalent to the credit of input tax
in respect of inputs held in stock and inputs contain
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ry bricks, moulds and dies, jigs
and fixtures are supplied as scrap, the taxable person may pay tax
on the transaction value of such goods determined under section 15.
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37
19. (1)
The principal shall, subject to such conditions and
restrictions as may be prescribed, be allowed input tax
credit on inputs sent to a job-worker for job-work.
(2) Notwithstanding anything contained in clause (b) of sub-
section (2) of section 16, the principal shall be entitled to
take credit of input tax on inputs even if the inputs are
directly sent to a job worker for job-work without being
first brought to his place of business.
(3) Where the inputs sent for job work are not received
back by the principal after completion of job-work or
otherwise or are not supplied from the place of business
of the job worker in accordance with clause (a) or clause
(b) of sub-section (1) of section 143 within one year of
being sent out, it shall be deemed that such inputs had
been supplied by the p
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Provided that where the capital goods are sent directly to a job
worker, the period of three years shall be counted from the date of
receipt of capital goods by the job worker.
(7) Nothing contained in sub-section (3) or sub-section (6)
shall apply to moulds and dies, jigs and fixtures, or tools
sent out to a job worker for job work.
Taking input tax credit in
respect of inputs sent for
job work.
38
Explanation:- For the purpose of this section, “principal” means the
person referred to in section 143.
20. (1) The Input Service Distributor shall distribute the credit
of State tax as State tax or integrated tax and integrated
tax as integrated tax or State tax, by way of issue of
document containing the amount of input tax credit
being distributed in such manner as may be prescribed.
(2) The Input Service Distributor may distribute the credit
subject to the following conditions, namely:-
(a) the credit can be distributed to the recipients of
credit against a d
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on the basis of the turnover in a State
or turnover in a Union territory of such recipient,
during the relevant period, to the aggregate of the
turnover of all recipients and which are operational
in the current year, during the said relevant period.
Explanation:-For the purposes of this section,-
Manner of distribution
of credit by Input Service
Distributor.
(a)
the “relevant period” shall be-
(i) if the recipients of credit have turnover in their
States or Union territories in the financial year
preceding the year during which credit is to be
distributed, the said financial year; or
21.
39
(ii) if some or all recipients of the credit do not have
any turnover in their States or Union territories in
the financial year preceding the year during which
the credit is to be distributed, the last quarter for
which details of such turnover of all the recipients
are available, previous to the month during which
credit is to be distributed;
(b) the expression “recipient
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R- VI
REGISTRATION
22.
(1) Every supplier making a taxable supply of goods or
services or both in the State shall be liable to be registered
under this Act if his aggregate turnover in a financial
year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of
goods or services or both from any of the special category States, he
shall be liable to be registered if his aggregate turnover in a financial
year exceeds ten lakh rupees.
Every supplier making a taxable supply of goods or services or
both in the State, shall be liable to be registered under this Act if his
aggregate turnover in a financial year exceeds ten lakh rupees.
(2) Every person who, on the day immediately preceding
the appointed day, is registered or holds a license under
an existing law, shall be liable to be registered under this
Act with effect from the appointed day.
(3) Where a business carried on by a taxable person
registered under this Act is transferred, whether on
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ker shall be treated as the supply of
goods by the principal referred to in section 143, and
the value of such goods shall not be included in the
aggregate turnover of the registered job worker.
Persons liable for
registration.
Only in SGST Law for
special category States
without the proviso
41
(iii) the expression “special category States” shall mean the
States as specified in sub-clause (g) of clause (4) of article
279A of the Constitution.
23. (1) The following persons shall not be liable to registration,
namely:-
(a) any person engaged exclusively in the business of
supplying goods or services or both that are not
liable to tax or wholly exempt from tax under this
Act or under the Integrated Goods and Services
Tax Act;
(b) an agriculturist, to the extent of supply of produce
out of cultivation of land.
(2) The Government may, on the recommendations of the
Council, by notification, specify the category of persons
who may be exempted from obtaining regis
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at source under section 52;
(x) every electronic commerce operator;
(xi) every person supplying online information and data base
access or retrieval services from a place outside India to a
person in India, other than a registered person; and
(xii) such other person or class of persons as may be notified
by the Government on the recommendations of the
Council.
Persons not liable for
registration.
Compulsory registration
in certain cases.
43 of 1961
42
25. (1) Every person who is liable to be registered under section
22or section 24 shall apply for registration within
thirty days from the date on which he becomes liable
to registration, in such manner and subject to such
conditions as may be prescribed:
Provided that a casual taxable person or a non-resident
taxable person shall apply for registration at least five days prior to
the commencement of business.
Explanation :- Every person who makes a supply from the territorial
waters of India shall obtain registrat
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of an
establishment, has an establishment in another State or
Union territory, then such establishments shall be treated
as establishments of distinct persons for the purposes of
this Act.
(6) Every person shall have a Permanent Account Number
issued under the Income-tax Act, 1961 in order to be
eligible for grant of registration:
Provided that a person required to deduct tax under section
51may have, in lieu of a Permanent Account Number, a Tax
Deduction and Collection Account Number issued under the said
Act in order to be eligible for grant of registration.
Procedure for
Registration.
46 of 1947
43
(7) Notwithstanding anything contained in sub-section
(6), a non-resident taxable person may be granted
registration under sub-section (1) on the basis of such
other documents as may be prescribed.
(8) Where a person who is liable to be registered under this
Act fails to obtain registration, the proper officer may,
without prejudice to any action which may be taken
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such date, as may be prescribed.
(12) A registration or an Unique Identity Number shall
be deemed to have been granted after the expiry of
the period prescribed under sub-section (10), if no
deficiency has been communicated to the applicant
within that period.
(1) The grant of registration or the Unique Identity Number
under the Central Goods and Services Tax Att shall
be deemed to be a grant of registration or the Unique
Identity Number under this Act subject to the condition
that the application for registration or the Unique
Identity Number has not been rejected under this Act
within the time specified in sub-section (10) of section
25.
Deemed Registration.
44
(2) Notwithstanding anything contained in sub-section (10)
of section 25, any rejection of application for registration
or the Unique Identity Number under the Central Goods
and Services Tax Act shall be deemed to be a rejection of
application for registration under this Act.
27. (1)
The certificate of re
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to the estimated tax liability of such person
for the period for which the extension is sought.
28.
(3) The amount deposited under sub-section (2) shall be
credited to the electronic cash ledger of such person and
shall be utilised in the manner provided under section
49.
(1) Every registered person and a person to whom a
Unique Identity Number has been assigned shall inform
the proper officer of any changes in the information
furnished at the time of registration or subsequent
thereto, in such form, manner and within such period
as may be prescribed.
(2) The proper officer may, on the basis of information
furnished under sub-section (1) or as ascertained by
him, approve or reject amendments in the registration
particulars in such manner and within such period as
may be prescribed:
Provided that approval of the proper officer shall not be
required in respect of amendment of such particulars as may be
prescribed:
Special provisions
relating to casual taxable
perso
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person registered
under sub-section (3) of section 25, is no longer
liable to be registered under section 22 or section
24.
The
proper officer may cancel the registration of a person
from such date, including any retrospective date, as he
may deem fit, where,-
(a)
the registered person has contravened such
provisions of the Act or the rules made thereunder
as may be prescribed; or
(b) a person paying tax under section 10 has not
furnished returns for three consecutive tax periods;
or
(c) any person, other than a person specified in clause
(b), has not furnished returns for a continuous
period of six months; or
(d) any person who has taken voluntary registration
under sub-section (3) of section 25 has not
commenced business within six months from the
date of registration; or
(e) registration has been obtained by means of fraud,
willful misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration
without giving the pers
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ancellation
or the output tax payable on such goods, whichever is
higher, calculated in such manner as may be prescribed:
Provided that in case of capital goods or plant and machinery,
the taxable person shall pay an amount equal to the input tax credit
taken on the said capital goods or plant and machinery, reduced
by such percentage points as may be prescribed or the tax on the
transaction value of such capital goods or plant and machinery
under section 15, whichever is higher.
30.
(6)
(1)
(2)
(3)
The amount payable under sub-section (5) shall be
calculated in such manner as may be prescribed.
Subject to such conditions as may be prescribed, any
registered person, whose registration is cancelled by the
proper officer on his own motion, may apply to such
officer for revocation of cancellation of the registration
in the prescribed manner within thirty days from the
date of service of the cancellation order.
The
proper officer may, in such manner and within such
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be issued, within such
time and in such manner as may be prescribed.
(2) A registered person supplying taxable services shall,
before or after the provision of service but within a period
prescribed, issue a tax invoice, showing the description,
value, tax charged thereon and such other particulars as
may be prescribed:
Provided that the Government may, on the recommendations
of the Council, by notification and subject to the conditions
mentioned therein, specify the categories of services in respect of
which-
(a) any other document issued in relation to the supply
shall be deemed to be a tax invoice; or
(b) tax invoice may not be required to be issued.
(3) Notwithstanding anything contained in sub-sections (1)
and (2)-
(a) a registered person may, within one month from
the date of issuance of certificate of registration
and in such manner as may be prescribed, issue a
revised invoice against the invoice already issued
during the period beginning with the effective
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prescribed, evidencing receipt of such
payment;
(e) where, on receipt of advance with respect to any
supply of goods or services or both the registered
person issues a receipt voucher, but subsequently
no supply is made and no tax invoice is issued in
pursuance thereof, the said registered person may
issue to the person who had made the payment, a
refund voucher against such payment;
(f) a registered person who is liable to pay tax under
sub-section (4) of section 9 shall issue an invoice in
respect of goods or services or both received by him
on the date of receipt of goods or services or both;
a registered person who is liable to pay tax under
sub-section (3) or sub-section (4) of section 9shall
issue a payment voucher at the time of making
payment to the supplier who is not registered under
the Act.
(g)
(4) In case of continuous supply of goods, where successive
statements of accounts or successive payments are
involved, the invoice shall be issued before or at
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ere the goods being sent or taken on approval for sale
or return are removed before the supply takes place, the
invoice shall be issued before or at the time of supply
or six months from the date of removal, whichever is
earlier.
Explanation:-For the purposes of this section, the expression “tax
invoice” shall include any revised invoice issued by the supplier in
respect of a supply made earlier.
32.
(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.
33. Notwithstanding anything contained in this Act or any other
law for the time being in force, where any supply is made for
a consideration, every person who is liable to pay tax for such
supply shall prominently indicate in all documents relating to
assessment, tax invoice and other like do
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but not
later than September following the end of the financial
year in which such supply was made, or the date of filing
of the relevant annual return, whichever is earlier, and
the tax liability shall be adjusted in such manner as may
be prescribed:
Provided that no reduction in output tax liability of the
supplier shall be permitted, if the incidence of tax and interest on
such supply has been passed on to any other person.
(3)
Where a tax invoice has been issued for supply of any
goods or services or both and the taxable value or tax
charged in that tax invoice is found to be less than the
taxable value or tax payable in respect of such supply,
the registered person, who has supplied such goods or
services or both, shall issue to the recipient a debit note
containing such particulars as may be prescribed.
(4) Any registered person who issues a debit note in relation
to a supply of goods or services or both shall declare the
details of such debit note in the retu
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ntain such accounts and other particulars in electronic form in
such manner as may be prescribed.
(2) Every owner or operator of warehouse or godown or
any other place used for storage of goods and every
transporter, irrespective of whether he is a registered
person or not, shall maintain records of the consigner,
consignee and other relevant details of such goods as
may be prescribed.
(3) The Commissioner may notify a class of taxable persons
to maintain additional accounts or documents for such
purpose as may be specified therein.
(4) Where the Commissioner considers that any class of
taxable persons is not in a position to keep and maintain
accounts in accordance with the provisions of this
section, he may, for reasons to be recorded in writing,
permit such class of taxable persons to maintain accounts
in such manner as may be prescribed.
52
36.
(5) Every registered person whose turnover during a
financial year exceeds the prescribed limit shall get his
accounts
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turn for the year pertaining
to such accounts and records:
Provided that a registered person, who is a party to an appeal or
revision or any other proceedings before any Appellate Authority or
Revisional Authority or Appellate Tribunal or court, whether filed by
him or by the Commissioner, or is under investigation for an offence
under Chapter XIX, shall retain the books of account and other
records pertaining to the subject matter of such appeal or revision
or proceedings or investigation for a period of one year after final
disposal of such appeal or revision or proceedings or investigation,
or for the period specified above, whichever is later.
Period of retention of
accounts.
53
CHAPTER- IX
RETURNS
37. (1) Every registered person, other than an Input Service
Distributor, a non-resident taxable person and a person
paying tax under the provisions of section 10,section 51
or section 52, shall furnish, electronically, in such form
and manner as may be prescribed, th
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to inward supplies of Input Service
Distributor under sub-section (4) of section 38, shall
either accept or reject the details so communicated,
on or before the seventeenth day, but not before the
fifteenth day, of the month succeeding the tax period
and the details furnished by him under sub-section (1)
shall stand amended accordingly.
(3) Any registered person, who has furnished the details
under sub-section (1) for any tax period and which have
remained unmatched under section 42 or section 43,
shall, upon discovery of any error or omission therein,
rectify such error or omission in such manner as may be
prescribed, and shall pay the tax and interest, if any, in
case there is a short payment of tax on account of such
error or omission, in the return to be furnished for such
tax period:
Furnishing details of
outward supplies.
54
Provided that no rectification of error or omission in respect
of the details furnished under sub-section (1) shall be allowed after
fu
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in respect of such supplies
that have not been declared by the supplier under sub-
section (1) of section 37.
(2)
Every registered person, other than an Input Service
Distributor or a non-resident taxable person or a person
paying tax under the provisions of section 10, section.
51 or section 52, shall furnish, electronically, the details
of inward supplies of taxable goods or services or both,
including inward supplies of goods or services or both
on which the tax is payable on reverse charge basis under
this Act and inward supplies of goods or services or both
taxable under the Integrated Goods and Services Tax Act
or on which integrated goods and services tax is payable
under section 3 of the Customs Tariff Act, 1975, and
credit or debit notes received in respect of such supplies
during a tax period after the tenth day but on or before
the fifteenth day of the month succeeding the tax period
in such form and manner as may be prescribed:
Provided that the Commissi
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r section 42 or section 43,
shall, upon discovery of any error or omission therein,
rectify such error or omission in the tax period during
which such error or omission is noticed in such manner
as may be prescribed, and shall pay the tax and interest,
if any, in case there is a short payment of tax on account
of such error or omission, in the return to be furnished
for such tax period:
Provided that no rectification of error or omission in respect
of the details furnished under sub-section (2) shall be allowed after
furnishing of the return under section 39 for the month of September
following the end of the financial year to which such details pertain,
or furnishing of the relevant annual return, whichever is earlier
39. (1) Every registered person, other than an Input Service
Distributor or a non-resident taxable person or a person
paying tax under the provisions of section 10, section
51 or section 52 shall, for every calendar month or
part thereof, furnish, in suc
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nput Service
Distributor shall, for every calendar month or part
thereof, furnish, in such form and manner as may be
prescribed, a return, electronically, within thirteen days
after the end of such month.
(5) Every registered non-resident taxable person shall,
for every calendar month or part thereof, furnish, in
such form and manner as may be prescribed, a return,
electronically, within twenty days after the end of a
calendar month or within seven days after the last day of
the period of registration specified under sub-section(1)
of section 27, whichever is earlier.
(6)
The Commissioner may, for reasons to be recorded
in writing, by notification, extend the time limit for
furnishing the returns under this section for such class
of registered persons as may be specified therein:
Provided that any extension of time limit notified by the
Commissioner of central tax shall be deemed to be notified by the
Commissioner.
(7) Every registered person, who is required to fur
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which such
omission or incorrect particulars are noticed, subject to
payment of interest under this Act:
Provided that no such rectification of any omission or incorrect
particulars shall be allowed after the due date for furnishing of return
for the month of September or second quarter following the end of
the financial year, or the actual date of furnishing of relevant annual
return, whichever is earlier.
(10) A registered person shall not be allowed to furnish
a return for a tax period if the return for any of the
previous tax periods has not been furnished by him.
40. Every registered person who has made outward supplies in
the period between the date on which he became liable to
registration till the date on which registration has been granted
shall declare the same in the first return furnished by him after
grant of registration.
41.
(1) Every registered person shall, subject to such conditions
and restrictions as may be prescribed, be entitled to take
credit
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id
under section 3 of the Customs Tariff Act, 1975 in
respect of goods imported by him; and
(c) for duplication of claims of input tax credit.
(2) The claim of input tax credit in respect of invoices or
debit notes relating to inward supply that match with
the details of corresponding outward supply or with the
integrated goods and services tax paid under section
3 of the Customs Tariff Act, 1975 in respect of goods
imported by him shall be finally accepted and such
acceptance shall be communicated, in such manner as
may be prescribed, to the recipient.
(3) Where the input tax credit claimed by a recipient
in respect of an inward supply is in excess of the tax
declared by the supplier for the same supply or the
outward supply is not declared by the supplier in his
valid returns, the discrepancy shall be communicated to
both such persons in such manner as may be prescribed.
(4) The duplication of claims of input tax credit shall be
communicated to the recipient in suc
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ty any amount has
been added under sub-section (5) or sub-section (6),
shall be liable to pay interest at the rate specified under
sub-section (1) of section 50 on the amount so added
from the date of availing of credit till the corresponding
additions are made under the said sub-sections.
(9) Where any reduction in output tax liability is accepted
under sub-section (7), the interest paid under sub-
section (8) shall be refunded to the recipient by crediting
the amount in the corresponding head of his electronic
cash ledger in such manner as may be prescribed:
Provided that the amount of interest to be credited in any case
shall not exceed the amount of interest paid by the supplier.
(10) The amount reduced from the output tax liability in
contravention of the provisions of sub-section (7) shall
be added to the output tax liability of the recipient in his
return for the month in which such contravention takes
place and such recipient shall be liable to pay interest on
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(3)
(4)
(5)
(6)
(7)
Where the reduction of output tax liability in respect of
outward supplies exceeds the corresponding reduction
in the claim for input tax credit or the corresponding
credit note is not declared by the recipient in his valid
returns, the discrepancy shall be communicated to both
such persons in such manner as may be prescribed.
The duplication of claims for reduction in output tax
liability shall be communicated to the supplier in such
manner as may be prescribed.
The amount in respect of which any discrepancy is
communicated under sub-section (3) and which is
not rectified by the recipient in his valid return for the
month in which discrepancy is communicated shall
be added to the output tax liability of the supplier, in
such manner as may be prescribed, in his return for the
month succeeding the month in which the discrepancy
is communicated.
The amount in respect of any reduction in output tax
liability that is found to be on account o
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ing head of his electronic
cash ledger in such manner as may be prescribed:
Provided that the amount of interest to be credited in any case
shall not exceed the amount of interest paid by the recipient.
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44.
(10) The amount reduced from output tax liability in
contravention of the provisions of sub-section (7), shall
be added to the output tax liability of the supplier in his
return for the month in which such contravention takes
place and such supplier shall be liable to pay interest on
the amount so added at the rate specified in sub-section
(3) of section 50.
(1) Every registered person, other than an Input Service
Distributor, a person paying tax under section 51 or
section 52, a casual taxable person and a non-resident
taxable person, shall furnish an annual return for every
financial year electronically in such form and manner
as may be prescribed on or before the thirty-first day of
December following the end of such financial year.
(2) Every registered per
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egistered person who fails to furnish the details of
outward or inward supplies required under section 37 or
section 38 or returns required under section 39 or section
45 by the due date shall pay a late fee of one hundred
rupees for every day during which such failure continues
subject to a maximum amount of five thousand rupees.
Annual return.
Final return.
Notice to return
defaulters.
Levy of late fee.
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48.
(2) Any registered person who fails to furnish the return
required under section 44 by the due date shall be
liable to pay a late fee of one hundred rupees for every
day during which such failure continues subject to a
maximum of an amount calculated at a quarter per cent
of his turnover in the State.
(1) The manner of approval of goods and services tax
practitioners, their eligibility conditions, duties and
obligations, manner of removal and other conditions
relevant for their functioning shall be such as may be
prescribed.
(2) A registered person may a
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ic cash ledger of such person to be maintained in
such manner as may be prescribed.
The input tax credit as self-assessed in the return of are
glistered person shall be credited to his electronic credit
ledger, in accordance with section 41, to be maintained
in such manner as may be prescribed.
(3) The amount available in the electronic cash ledger may
be used for making any payment towards tax, interest,
penalty, fees or any other amount payable under the
provisions of this Act or the rules made thereunder in
such manner and subject to such conditions and within
such time as may be prescribed.
(4)
(5)
The amount available in the electronic credit ledger
may be used for making any payment towards output
tax under this Act or under the Integrated Goods and
Services Tax Act in such manner and subject to such
conditions and within such time as may be prescribed.
The amount of input tax credit available in the electronic
credit ledger of the registered person on account
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ent of central tax.
(6) The balance in the electronic cash ledger or electronic
credit ledger after payment of tax, interest, penalty, fee
or any other amount payable under this Act or the rules
made thereunder may be refunded in accordance with
the provisions of section 54.
(7) All liabilities of a taxable person under this Act shall
be recorded and maintained in an electronic liability
register in such manner as may be prescribed.
(8) Every taxable person shall discharge his tax and other
dues under this Act or the rules made thereunder in the
following order, namely:-
(a) self-assessed tax, and other dues related to returns
of previous tax periods;
(b) self-assessed tax, and other dues related to the
return of the current tax period;
(c) any other amount payable under this Act or the
rules made thereunder including the demand
determined under section 73or section 74.
(9) Every person who has paid the tax on goods or services
or both under this Act shall, unless t
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be notified by the Government on the
recommendations of the Council.
(2) The interest under sub-section (1) shall be calculated
in such manner as may be prescribed from the day
succeeding the day on which such tax was due to be
paid.
(3) A taxable person who makes an undue or excess claim
of input tax credit under sub-section (10) of section
42 or undue or excess reduction in output tax liability
under sub-section (10) of section 43, shall pay interest
on such undue or excess claim or on such undue or
excess reduction, as the case may be, at such rate not
exceeding twenty-four per cent., as may be notified
by the Government on the recommendations of the
Council.
51. (1) Notwithstanding anything to the contrary contained in
this Act, the Government may mandate,-
(a) a department or establishment of the Central
Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category ofpersons as may be notified
by the Gov
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r the end of the month in which such deduction is
made, in such manner as may be prescribed.
(3) The deductor shall furnish to the deducted a certificate
mentioning therein the contract value, rate of deduction,
amount deducted, amount paid to the Government
and such other particulars in such manner as may be
prescribed.
(4) If any deductor fails to furnish to the deductee the
certificate, after deducting the tax at source, within
five days of crediting the amount so deducted to the
Government, the deductor shall pay, by way of a late
fee, a sum of one hundred rupees per day from the day
after the expiry of such five day period until the failure is
rectified, subject to a maximum amount of five thousand
rupees.
(5) The deductee shall claim credit, in his electronic cash
ledger, of the tax deducted and reflected in the return of
the deductor furnished under sub-section (3) of section
39, in such manner as may be prescribed.
(6) If any deductor fails to pay to the Gove
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of taxable supplies made through it by other suppliers
where the consideration with respect to such supplies is
to be collected by the operator.
Explanation:-For the purposes of this sub-section, the expression
“net value of taxable supplies” shall mean the aggregate value of
taxable supplies of goods or services or both, other than services
notified under sub-section (5) of section 9, made during any month
by all registered persons through the operator reduced by the
aggregate value of taxable supplies returned to the suppliers during
the said month.
(2) The power to collect the amount specified in sub-section
(1) shall be without prejudice to any other mode of
recovery from the operator.
(3) The amount collected under sub-section (1) shall be
paid to the Government by the operator within ten days
after the end of the month in which such collection is
made, in such manner as may be prescribed.
(4) Every operator who collects the amount specified in
sub-section (1) s
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sion or incorrect
particulars therein, other than as a result of scrutiny,
audit, inspection or enforcement activity by the tax
authorities, he shall rectify such omission or incorrect
particulars in the statement to be furnished for the month
during which such omission or incorrect particulars are
noticed, subject to payment of interest, as specified in
sub-section (1) of section 50:
Provided that no such rectification of any omission or
incorrect particulars shall be allowed after the due date for furnishing
of statement for the month of September following the end of the
financial year or the actual date of furnishing of the relevant annual
statement, whichever is earlier.
(7) The supplier who has supplied the goods or services
or both through the operator shall claim credit, in his
electronic cash ledger, of the amount collected and
reflected in the statement of the operator furnished under
sub-section (4), in such manner as may be prescribed.
(8) The details of s
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rn
for the month succeeding the month in which the
discrepancy is communicated in such manner as may be
prescribed.
69
(11) The concerned supplier, in whose output tax liability any
amount has been added under sub-section (10), shall
pay the tax payable in respect of such supply along with
interest, at the rate specified under sub-section (1) of
section 50 on the amount so added from the date such
tax was due till the date of its payment.
(12) Any authority not below the rank of Deputy
Commissioner may serve a notice, either before or
during the course of any proceedings under this Act,
requiring the operator to furnish such details relating
to-
(a) supplies of goods or services or both effected
through such operator during any period; or
(b) stock of goods held by the suppliers making
supplies through such operator in the godowns or
warehouses, by whatever name called, managed by
such operators and declared as additional places of
business by such suppliers,
as
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such credit so utilised and
the State Government shall transfer an amount equal to the
amount so reduced from the State tax account to the integrated
tax account in such manner and within such time as may be
prescribed.
Transfer of input tax
credit.
46 of 1947
70
CHAPTER XI
REFUNDS
54. (1) Any person claiming refund of any tax and interest
paid on such tax or any other amount paid by him, may
make an application before the expiry of two years from
the relevant date in such form and manner as may be
prescribed:
Provided that a registered person, claiming refund of any
balance in the electronic cash ledger as per sub-section (6) of
section49, may claim such refund in the return furnished under
section 39 in such manner as may be prescribed.
(2)
A specialized agency of the United Nations Organization
or any Multilateral Financial Institution and Organization
notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of foreign
c
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ut tax credit
shall be allowed in cases where the goods exported out of India are
subjected to export duty:
Provided also that no refund of input tax credit shall be allowed,
if the supplier of goods or services or both avails of drawback or
claims refund of the integrated tax paid on such supplies.
(4) The application shall be accompanied byۥ
Refund of tax.
71
(a) such documentary evidence as may be prescribed
to establish that a refund is due to the applicant;
and
(b) such documentary or other evidence (including
the documents referred to in section 33) as the
applicant may furnish to establish that the amount
of tax and interest, if any, paid on such tax or any
other amount paid in relation to which such refund
is claimed was collected from, or paid by, him and
the incidence of such tax and interest had not been
passed on to any other person:
Provided that where the amount claimed as refund is less than
two lakh rupees, it shall not be necessary for the a
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nditions, limitations and safeguards as
may be prescribed and thereafter make an order under
sub-section (5) for final settlement of the refund claim
after due verification of documents furnished by the
applicant.
The proper officer shall issue the order under sub-
section (5) within sixty days from the date of receipt of
application complete in all respects.
(8) Notwithstanding anything contained in sub-section (5),
the refundable amount shall, instead of being credited
to the Fund, be paid to the applicant, if such amount is
relatable to
–
72
(a) refund of tax on inputs or input services used in the
goods or services or both which are exported out of
India;
(b) refund of unutilised input tax credit under sub-
section (3);
(c) refund of tax paid on a supply which is not provided,
either wholly or partially, and for which invoice has
not been issued, or where a refund voucher has
been issued;
€
(d) refund of tax in pursuance of section 77;
(e)
(f)
the t
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said
person has furnished the return or paid the tax,
interest or penalty, as the case may be;
(b) deduct from the refund due, any tax, interest,
penalty, fee or any other amount which the taxable
person is liable to pay but which remains unpaid
under this Act or under the existing law.
Explanation – For the purposes of this sub-section, the expression
“specified date” shall mean the last date for filing an appeal under
this Act.
73
(11) Where an order giving rise to a refund is the subject
matter of an appeal or further proceedings or where any
other proceedings under this Act is pending and the
Commissioner is of the opinion that grant of such refund
is likely to adversely affect the revenue in the said appeal
or other proceedings on account of malfeasance or fraud
committed, he may, after giving the taxable person an
opportunity of being heard, withhold the refund till such
time as he may determine.
(12) Where a refund is withheld under sub-section (11),
the tax
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puts or input services
used in the goods or services or both which are exported out
of India, or refund of tax on the supply of goods regarded as
deemed exports, or refund of unutilised input tax credit as
provided under sub-section (3).
“relevant date” means
(2)
(a)
in the case of goods exported out of India where a refund
of tax paid is available in respect of inputs or input
services used in such goods,-
(i) if the goods are exported by sea or air, the date on
which the ship or the aircraft in which such goods
are loaded, leaves India; or
74
(ii) if the goods are exported by land, the date on which
such goods pass the frontier; or
(iii) if the goods are exported by post, the date of
despatch of goods by the Post Office concerned to a
place outside India;
(b) in the case of supply of goods regarded as deemed
exports where a refund of tax paid is available in respect
of the goods, the date on which the return relating to
such deemed exports is filed;
(c)
in th
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case of a person, other than the supplier, the date
of receipt of goods or services or both by such person;
and
(h) in any other case, the date of payment of tax.
75
46 of 1947
55.
56.
The Government may, on the recommendations of the
Council, by notification, specify any specialized agency of the
United Nations Organization or any Multilateral Financial
Institution and Organization notified under the United
Nations (Privileges and Immunities) Act, 1947, Consulate or
Embassy of foreign countries and any other person or class of
persons as may be specified in this behalf, who shall, subject
to such conditions and restrictions as may be prescribed, be
entitled to claim a refund of taxes paid on the notified supplies
of goods or services or both received by them.
If any tax ordered to be refunded under sub-section (5) of
section 54 to any applicant is not refunded within sixty days
from the date of receipt of application under sub-section (1) of
that section, interes
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of
refund is made by an Appellate Authority, Appellate Tribunal or any
court against an order of the proper officer under sub-section (5) of
section 54, the order passed by the Appellate Authority, Appellate
Tribunal orby the court shall be deemed to be an order passed under
the said sub-section (5).
57. The Government shall constitute a Fund, to be called the
Consumer Welfare Fund and there shall be credited to the
Fund,-
(a) the amount of tax referred to in sub-section (5) of
section 54;
(b) any income from investment of the amount credited to
the Fund; and
Refund in certain cases.
Interest on delayed
refunds.
Consumer Welfare Fund.
(c)
such other monies received by it,
in such manner as may be prescribed.
58.
76
(1) All sums credited to the Fund shall be utilised by the
Government for the welfare of the consumers in such
manner as may be prescribed.
(2)
The Government or the authority specified by it shall
maintain proper and separate account and other rel
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able person executes a bond in such form as may
be prescribed, and with such surety or security as the
proper officer may deem fit, binding the taxable person
for payment of the difference between the amount of
tax as may be finally assessed and the amount of tax
provisionally assessed.
(3) The proper officer shall, within a period not exceeding six
months from the date of the communication of the order
issued under sub-section (1), pass the final assessment
order after taking into account such information as may
be required for finalizing the assessment:
Provided that the period specified in this sub-section may,
on sufficient cause being shown and for reasons to be recorded
in writing, be extended by the Joint Commissioner or Additional
Commissioner for a further period not exceeding six months and by
the Commissioner for such further period not exceeding four years.
(4) The registered person shall be liable to pay interest on
any tax payable on the supply of goods o
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ed and seek his explanation thereto.
(2) In case the explanation is found acceptable, the registered
person shall be informed accordingly and no further
action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within
a period of thirty days of being informed by the proper
officer or such further period as may be permitted by
him or where the registered person, after accepting
the discrepancies, fails to take the corrective measure
in his return for the month in which the discrepancy
is accepted, the proper officer may initiate appropriate
action including those under section 65 or section 66 or
section 67, or proceed to determine the tax and other
dues under section 73 or section 74.
62. (1) Notwithstanding anything to the contrary contained in
section 73 or section 74, where a registered person fails
to furnish the return under section 39 or section 45, even
after the service of a notice under section 46, the proper
officer may proce
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sub-section (2) of section 29 but
who was liable to pay tax, the proper officer may proceed to
assess the tax liability of such taxable person to the best of his
judgement for the relevant tax periods and issue an assessment
order within a period of five years from the date specified
under section 44 for furnishing of the annual return for the
financial year to which the tax not paid relates:
Provided that no such assessment order shall be passed
without giving the person an opportunity of being heard.
64.
(1)
The proper officer may, on any evidence showing a
tax liability of a person coming to his notice, with the
previous permission of Additional Commissioner or
Joint Commissioner, proceed to assess the tax liability
of such person to protect the interest of revenue and
issue an assessment order, if he has sufficient grounds
to believe that any delay in doing so may adversely affect
the interest of revenue:
Provided that where the taxable person to whom the liabil
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at the place of business of the registered person or
in their office.
(3) The registered person shall be informed, by way of a notice
not less than fifteen working days prior to the conduct of
audit in such manner as may be prescribed.
(4) The audit under sub-section (1) shall be completed
within a period of three months from the date of
commencement of the audit:
Provided that where the Commissioner is satisfied that audit
in respect of such registered person cannot be completed within
three months, he may, for the reasons to be recorded in writing,
extend the period by a further period not exceeding six months.
Explanation: For the purposes of this sub-section, the expression
“commencement of audit” shall mean the date on which the records
and other documents, called for by the tax authorities, are made
available by the registered person or the actual institution of audit at
the place of business, whichever is later.
(5) During the course of audit, the authorised off
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of
revenue, is of the opinion that the value has not been
correctly declared or the credit availed is not within
the normal limits, he may, with the prior approval of
the Commissioner, direct such registered person by a
communication in writing to get his records including
books of account examined and audited by a chartered
accountant or a cost accountant as may be nominated by
the Commissioner.
(2) The chartered accountant or cost accountant So
nominated shall, within the period of ninety days,
submit a report of such audit duly signed and certified
by him to the said Assistant Commissioner mentioning
therein such other particulars as may be specified:
Provided that the Assistant Commissioner may, on an
application made to him in this behalf by the registered person or
the chartered accountant or cost accountant or for any material
and sufficient reason, extend the said period by a further period of
ninety days.
(3) The provisions of sub-section (1) shall have effe
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EARCH, SEIZURE AND ARREST
67. (1)
Where the proper officer, not below the rank of Joint
Commissioner, has reasons to believe that-
(a) a taxable person has suppressed any transaction
relating to supply of goods or services or both or
the stock of goods in hand, or has claimed input
tax credit in excess of his entitlement under this
Act or has indulged in contravention of any of the
provisions of this Act or the rules made thereunder
to evade tax under this Act; or
(b) any person engaged in the business of transporting
goods or an owner or operator of a warehouse
or a godown or any other place is keeping goods
which have escaped payment of tax or has kept his
accounts or goods in such a manner as is likely to
cause evasion of tax payable under this Act,
he may authorise in writing any other officer of State tax to inspect
any places of business of the taxable person or the persons engaged
in the business of transporting goods or the owner or the operator of
warehouse
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ecessary for their examination and for any inquiry or proceedings
under this Act.
of inspection,
Power
search and seizure.
83
(3) The documents, books or things referred to in sub-
section (2) or any other documents, books or things
produced by a taxable person or any other person, which
have not been relied on for the issue of notice under this
Act or the rules made thereunder, shall be returned to
such person within a period not exceeding thirty days of
the issue of the said notice.
(4) The officer authorised under sub-section (2) shall have
the power to seal or break open the door of any premises
or to break open any almirah, electronic devices, box,
receptacle in which any goods, accounts, registers or
documents of the person are suspected to be concealed,
where access to such premises, almirah, electronic
devices, box or receptacle is denied.
(5) The person from whose custody any documents are
seized under sub-section (2) shall be entitled to make
copies ther
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having regard to the perishable
or hazardous nature of any goods, depreciation in the
value of the goods with the passage of time, constraints
of storage space for the goods or any other relevant
considerations, by notification, specify the goods or class
of goods which shall, as soon as may be after its seizure
under sub-section (2), be disposed of by the proper
officer in such manner as may be prescribed.
2 of 1974
84
68.
(9) Where any goods, being goods specified under sub-
section (8), have been seized by a proper officer or any
officer authorised by him, under sub-section (2), he shall
prepare an inventory of such goods in such manner as
may be prescribed.
(10) The provisions of the Code of Criminal Procedure, 1973,
relating to search and seizure, shall, so far as may be,
apply to search and seizure under this section subject to
the modification that sub-section (5) of section 165 of the
said Code shall have effect as if for the word “Magistrate”,
wherever it
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y issued earlier.
(1) The Government may require the person in charge of a
conveyance carrying any consignment of goods of value
exceeding such amount as may be specified to carry
with him such documents and such devices as may be
prescribed.
(2) The details of documents required to be carried under
sub-section (1) shall be validated in such manner as may
be prescribed.
(3) Where any conveyance referred to in sub-section (1) is
intercepted by the proper officer at any place, he may
require the person in charge of the said conveyance to
produce the documents prescribed under the said sub-
section and devices for verification, and the said person
shall be liable to produce the documents and devices and
also allow the inspection of goods.
Inspection of goods in
movement.
2 of 1974
5 of 1908
45 of 1860
85
69.
(1) Where the Commissioner has reasons to believe
that any person has committed any offence specified
in clause (a) or clause (b) or clause (c) or clause (d)
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be subject to the same provisions as an
officer-in-charge of a police station.
70. (1) The proper officer under this Act shall have power to
summon any person whose attendance he considers
necessary either to give evidence or to produce a
document or any other thing in any inquiry in the same
manner, as provided in the case of a civil court under the
provisions of the Code of Civil Procedure, 1908.
(2) Every such inquiry referred to in sub-section (1) shall
be deemed to be a “judicial proceedings” within the
meaning of section 193 and section 228 of the Indian
Penal Code.
71. (1) Any officer under this Act authorised by the proper
officer not below the rank of Joint Commissioner shall
have access to any place of business of a registered person
to inspect books of account, documents, computers,
computer programs, computer software whether
installed in a computer or otherwise and such other
things as he may require and which may be available at
such place, for the pur
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other relevant record,
for the scrutiny by the officer or audit party or the chartered
accountant or cost accountant within a period not exceeding
fifteen working days from the day when such demand is made,
or such further period as may be allowed by the said officer or
the audit party or the chartered accountant or cost accountant.
(1) All officers of Police, Railways, Customs, and those
engaged in the collection of land revenue, including
village officers, and officers of central tax and officers of
the Union territory tax shall assist the proper officers in
the implementation of this Act.
The Government may, by notification, empower and
require any other class of officers to assist the proper officers in
the implementation of this Act when called upon to do so by the
Commissioner.
Officers to assist
officers.
proper
87
CHAPTER XV
DEMANDS AND RECOVERY
73.
(1) Where it appears to the proper officer that any tax has
not been paid or short paid or erroneously refu
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nded or input tax credit wrongly availed
or utilised for such periods other than those covered
under sub-section (1), on the person chargeable with
tax.
(4) The service of such statement shall be deemed to be
service of notice on such person under sub-section (1),
subject to the condition that the grounds relied upon for
such tax periods other than those covered under sub-
section (1) are the same as are mentioned in the earlier
notice.
(5) The person chargeable with tax may, before service of
notice under sub-section (1) or, as the case may be, the
statement under sub-section (3) pay the amount of tax
along with interest payable thereon under section 50
on the basis of his own ascertainment of such tax or the
tax as ascertained by the proper officer and inform the
proper officer in writing of such payment.
Determination
of tax
not paid or short paid or
erroneously refunded or
input tax credit wrongly
availed or utilised for any
reason other than fraud or
any wi
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esentation, if any, made by person chargeable with
tax, determine the amount of tax, interest and a penalty
equivalent to ten per cent of tax or ten thousand rupees,
whichever is higher, due from such person and issue an
order.
(10) The proper officer shall issue the order under sub-section
(9) within three years from the due date for filing of
annual return for the financial year to which the tax not
paid or short paid or input tax credit wrongly availed or
utilised relates to or within three years from the date of
erroneous refund.
(11) Notwithstanding anything contained in sub-section (6)
or sub-section (8), penalty under sub-section (9) shall
be payable where any amount of self-assessed tax or
any amount collected as tax has not been paid within
a period of thirty days from the due date of payment of
such tax.
89
74. (1) Where it appears to the proper officer that any tax has
not been paid or short paid or erroneously refunded
or where input tax credit has been
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under sub-section (1), on the person chargeable with
tax.
(4) The service of statement under sub-section (3) shall be
deemed to be service of notice under sub-section (1)
of section 73, subject to the condition that the grounds
relied upon in the said statement, except the ground
of fraud, or any willful-misstatement or suppression of
facts to evade tax, for periods other than those covered
under sub-section (1) are the same as are mentioned in
the earlier notice.
(5) The person chargeable with tax may, before service of
notice under sub-section (1), pay the amount of tax
along with interest payable under section 50 and a
penalty equivalent to fifteen per cent. of such tax on the
basis of his own ascertainment of such tax or the tax as
ascertained by the proper officer and inform the proper
officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall
not serve any notice under sub-section (1), in respect
of the tax so paid or an
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tax, determine the amount of tax, interest and
penalty due from such person and issue an order.
(10) The proper officer shall issue the order under sub-section
(9) within a period of five years from the due date for
filing of annual return for the financial year to which the
tax not paid or short paid or input tax credit wrongly
availed or utilised relates to or within five years from the
date of erroneous refund.
(11) Where any person served with an order issued under
sub-section (9) pays the tax along with interest payable
thereon under section 50 and a penalty equivalent to fifty
per cent of such tax within thirty days of communication
of the order, all proceedings in respect of the said notice
shall be deemed to be concluded.
Explanation 1.- For the purposes of section 73 and this section, –
(i)
the expression “all proceedings in respect of the said
notice” shall not include proceedings under section 132;
(ii) where the notice under the same proceedings is
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pellate Authority or Appellate Tribunal
or court concludes that the notice issued under sub-
section (1) of section 74 is not sustainable for the reason
that the charges of fraud or any wilful mis-statement or
suppression of facts to evade tax has not been established
against the person to whom the notice was issued, the
proper officer shall determine the tax payable by such
person, deeming as if the notice were issued under sub-
section (1) of section 73.
(3) Where any order is required to be issued in pursuance
of the direction of the Appellate Authority or Appellate
Tribunal or a court, such order shall be issued within
two years from the date of communication of the said
direction.
(4) An opportunity of hearing shall be granted where a
request is received in writing from the person chargeable
with tax or penalty, or where any adverse decision is
contemplated against such person.
(5) The proper officer shall, if sufficient cause is shown by the
person chargeable w
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ty.
(10) The adjudication proceedings shall be deemed to be
concluded, if the order is not issued within three years as
provided for in sub-section (10) of section 73 or within
five years as provided for in sub-section (10) of section
74.
(11) An issue on which the Appellate Authority or the
Appellate Tribunal or the High Court has given its
decision which is prejudicial to the interest of revenue in
some other proceedings and an appeal to the Appellate
Tribunal or the High Court or the Supreme Court
against such decision of the Appellate Authority or the
Appellate Tribunal or the High Court is pending, the
period spent between the date of the decision of the
Appellate Authority and that of the Appellate Tribunal
or the date of decision of the Appellate Tribunal and that
of the High Court or the date of the decision of the High
Court and that of the Supreme Court shall be excluded
in computing the period referred to in sub-section (10)
of section 73 or sub-section (1
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t, and has not paid the said amount to
the Government, shall forthwith pay the said amount to
the Government, irrespective of whether the supplies in
respect of which such amount was collected are taxable
or not.
(2) Where any amount is required to be paid to the
Government under sub-section (1), and which has not
been so paid, the proper officer may serve on the person
liable to pay such amount a notice requiring him to show
cause why the said amount as specified in the notice,
should not be paid by him to the Government and why a
penalty equivalent to the amount specified in the notice
should not be imposed on him under the provisions of
this Act.
(3) The proper officer shall, after considering the
representation, if any, made by the person on whom
the notice is served under sub-section (2), determine
the amount due from such person and thereupon such
person shall pay the amount so determined.
(4) The person referred to in sub-section (1) shall in addition
to payi
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s
referred to in sub-section (1).
(10) Where any surplus is left after the adjustment under sub-
section (9), the amount of such surplus shall either be
credited to the Fund or refunded to the person who has
borne the incidence of such amount.
(11) The person who has borne the incidence of the amount,
may apply for the refund of the same in accordance with
the provisions of section 54.
77. (1) A registered person who has paid the central tax and
State tax on a transaction considered by him to be an
intra-State supply, but which is subsequently held to
be an inter-State supply, shall be refunded the amount
of taxes so paid in such manner and subject to such
conditions as may be prescribed.
(2) A registered person who has paid integrated tax on
a transaction considered by him to be an inter-State
supply, but which is subsequently held to be an intra-
State supply, shall not be required to pay any interest on
the amount of State tax.payable.
78. Any amount payable by a
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lly collected
and paid to Central
Government or State
Government.
Initiation of recovery
proceedings.
Recovery of tax.
95
(b) the proper officer may recover or may require
any other specified officer to recover the amount
so payable by detaining and selling any goods
belonging to such person which are under the
control of the proper officer or such other specified
officer;
(c) (i)
the proper officer may, by a notice in writing,
require any other person from whom money
is due or may become due to such person or
who holds or may subsequently hold money
for or on account of such person, to pay
to the Government either forthwith upon
the money becoming due or being held, or
within the time specified in the notice not
being before the money becomes due or is
held, so much of the money as is sufficient to
pay the amount due from such person or the
whole of the money when it is equal to or less
than that amount;
(ii) every person to whom the notice is issued
under
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sub-
clause (i) shall be deemed to have made the
payment under the authority of the person
in default and such payment being credited
to the Government shall be deemed to
constitute a good and sufficient discharge of
the liability of such person to the person in
default to the extent of the amount specified
in the receipt;
(vi) any person discharging any liability to the
person in default after service on him of the
notice issued under sub-clause (i) shall be
personally liable to the Government to the
extent of the liability discharged or to the
extent of the liability of the person in default
for tax, interest and penalty, whichever is
less;
(vii) where a person on whom a notice is served
under sub-clause (i) proves to the satisfaction
of the officer issuing the notice that the
money demanded or any part thereof was
not due to the person in default or that he did
not hold any money for or on account of the
person in default, at the time the notice was
served on
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may prepare a certificate signed
by him specifying the amount due from such
person and send it to the Collector of the district in
which such person owns any property or resides or
carries on his business or to any officer authorised
by the Government and the said Collector or the
said officer, on receipt of such certificate, shall
proceed to recover from such person the amount
specified thereunder as if it were an arrear of land
revenue;
(f) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973, the proper officer may
file an application to the appropriate Magistrate
and such Magistrate shall proceed to recover from
such person the amount specified thereunder as if
it were a fine imposed by him.
(2) Where the terms of any bond or other instrument
executed under this Act or any rules or regulations made
thereunder provide that any amount due under such
instrument may be recovered in the manner laid down
in sub-section (1), the amount may, withou
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ct, other than the amount due as per the liability self-assessed
in any return, by such person in monthly installments not
exceeding twenty four, subject to payment of interest under
section 50, subject to such conditions and limitations as may
be prescribed:
Payment of tax and other
amount in installments.
98
31 of 2016
Provided that where there is default in payment of any one
installment on its due date, the whole outstanding balance payable
on such date shall become due and payable forthwith and shall,
without any further notice being served on the person, be liable for
recovery.
81.
Where a person, after any amount has become due from him,
creates a charge on or parts with the property belonging to him
or in his possession by way of sale, mortgage, exchange, or any
other mode of transfer whatsoever of any of his properties in
favour of any other person with the intention of defrauding
the Government revenue, such charge or transfer shall be void
as against any
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ing the interest of
the Government revenue, it is necessary so to do, he may,
by order in writing attach provisionally any property,
including bank account, belonging to the taxable person
in such manner as may be prescribed.
(2) Every such provisional attachment shall cease to have
effect after the expiry of a period of one year from the
date of the order made under sub-section (1).
Where any notice of demand in respect of any tax, penalty,
interest or any other amount payable under this Act, (hereafter
in this section referred to as “Government dues”), is served
upon any taxable person or any other person and any appeal
or revision application is filed or any other proceedings is
initiated in respect of such Government dues, then-
Transfer of property to be
void in certain cases.
Tax to be first charge on
property.
Provisional attachment to
protect revenue in certain
cases.
Continuation and
validation of certain
recovery proceedings.
99
(a) where
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the
basis of the demand served upon him prior to
the disposal of such appeal, revision or other
proceedings may be continued in relation
to the amount so reduced from the stage at
which such proceedings stood immediately
before such disposal.
100
CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
85. (1) Where a taxable person, liable to pay tax under this Act,
transfers his business in whole or in part, by sale, gift,
lease, leave and license, hire or in any other manner
whatsoever, the taxable person and the person to whom
the business is so transferred shall, jointly and severally,
be liable wholly or to the extent of such transfer, to pay the
tax, interest or any penalty due from the taxable person
up to the time of such transfer, whether such tax, interest
or penalty has been determined before such transfer, but
has remained unpaid or is determined thereafter.
(2) Where the transferee of a business referred to in sub-
section (1) carries on such business either in
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hall be included in the turnover of
supply or receipt of the respective companies and they
shall be liable to pay tax accordingly.
(2) Notwithstanding anything contained in the said order,
for the purposes of this Act, the said two or more
companies shall be treated as distinct companies for the
period up to the date of the said order and the registration
certificates of the said companies shall be cancelled with
effect from the date of the said order.
Liability in case of
transfer of business.
Liability of agent and
principal.
Liability in case of
amalgamation or merger
of companies.
31 of 2016
18 of 2013
101
88.
89.
(1) When any company is being wound up whether under
the orders of a court or Tribunal or otherwise, every
person appointed as receiver of any assets of a company
(hereafter in this section referred to as the “liquidator”),
shall, within thirty days after his appointment, give
intimation of his appointment to the Commissioner.
(2) The Commission
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n relation to the affairs of the company.
(1) Notwithstanding anything contained in the Companies
Act, 2013, where any tax, interest or penalty due from
a private company in respect of any supply of goods or
services or both for any period cannot be recovered, then,
every person who was a director of the private company
during such period shall, jointly and severally, be liable
for the payment of such tax, interest or penalty unless he
proves that the non-recovery cannot be attributed to any
gross neglect, misfeasance or breach of duty on his part
in relation to the affairs of the company.
(2) Where a private company is converted into a public
company and the tax, interest or penalty in respect of any
supply of goods or services or both for any period during
which such company was a private company cannot
be recovered before such conversion, then, nothing
contained in sub-section (1) shall apply to any person
who was a director of such private company in relation
to a
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iven within
one month from the date of retirement, the liability of such partner
under the first proviso shall continue until the date on which such
intimation is received by the Commissioner.
91.
92.
22
Where the business in respect of which any tax, interest
or penalty is payable under this Act is carried on by any
guardian, trustee or agent of a minor or other incapacitated
person on behalf of and for the benefit of such minor or other
incapacitated person, the tax, interest or penalty shall be levied
upon and recoverable from such guardian, trustee or agent in
like manner and to the same extent as it would be determined
and recoverable from any such minor or other incapacitated
person, as if he were a major or capacitated person and as if he
were conducting the business himself, and all the provisions of
this Act or the rules made thereunder shall, apply accordingly.
Where the estate or any portion of the estate of a taxable
person owning a business in respect of
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er person, such legal representative or other
person, shall be liable to pay tax, interest or penalty
due from such person under this Act; and
Liability of partners of
firm to pay tax.
Liability of guardians,
trustees etc.
Liability of Court of
Wards etc.
Special provisions
regarding liability to pay
tax, interest or penalty in
certain cases.
31 of 2016
31 of 2016
31 of 2016
103
(b) if the business carried on by the person is
discontinued, whether before or after his death,
his legal representative shall be liable to pay, out of
the estate of the deceased, to the extent to which
the estate is capable of meeting the charge, the tax,
interest or penalty due from such person under this
Act,
whether such tax, interest or penalty has been determined before his
death but has remained unpaid or is determined after his death.
(2)
(3)
Save as otherwise provided in the Insolvency and
Bankruptcy Code, 2016, where a taxable person, liable
to pay tax, interest or penal
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olution, but
has remained unpaid or is determined after dissolution.
(4) Save as otherwise provided in the Insolvency and
Bankruptcy Code, 2016, where a taxable person liable to
pay tax, interest or penalty under this Act,-
(a) is the guardian of a ward on whose behalf the
business is carried on by the guardian; or
(b) is a trustee who carries on the business under a
trust for a beneficiary,
then, if the guardianship or trust is terminated, the ward or the
beneficiary shall be liable to pay the tax, interest or penalty due
from the taxable person up to the time of the termination of the
guardianship or trust, whether such tax, interest or penalty has been
determined before the termination of guardianship or trust but has
remained unpaid or is determined thereafter.
104
743 of 2012
94.
(1) Where a taxable person is a firm or an association of
persons or a Hindu undivided family and such firm,
association or family has discontinued business-
(a) the tax, interest or
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out prejudice
to the provisions of section 90, jointly and severally, be
liable to pay tax, interest or penalty due from such firm
or association for any period before its reconstitution.
(3) The provisions of sub-section (1) shall, so far as may
be, apply where the taxable person, being a firm or
association of persons is dissolved or where the taxable
person, being a Hindu Undivided Family, has effected
partition with respect to the business carried on by
it and accordingly references in that sub-section to
discontinuance shall be construed as reference to
dissolution or, as the case may be, to partition.
Explanation:-For the purposes of this Chapter,-
(a)
a “Limited Liability Partnership” formed and registered
under the provisions of the Limited Liability Partnership
Act, 2012 shall also be considered as a firm;
(b) “court” means the District Court, High Court or Supreme
Court.
Liability in other cases.
105
CHAPTER XVII
ADVANCE RULING
95.
In this Chapter, unl
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tify any Authority located in another State to act
as the Authority for the State.
(2) The Authority shall consist of-
(i)
one member from amongst the officers of central
tax; and
(ii) one member from amongst the officers of State tax,
to be appointed by the Central Government and the State
Government respectively.
(3) The qualifications, the method of appointment of the
members and the terms and conditions of their services
shall be such as may be prescribed.
97. (1) An applicant desirous of obtaining an advance ruling
under this Chapter may make an application in such
form and manner and accompanied by such fee as may
be prescribed, stating the question on which the advance
ruling is sought.
Definitions.
Constitution of Authority
for Advance Ruling.
Application for advance
ruling.
106
(2) The question on which the advance ruling is sought
under this Act, shall be in respect of, –
(a) classification of any goods or services or both;
(b) applicability of a not
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er hearing the applicant or
his authorised representative and the concerned officer
or his authorised representative, by order, either admit
or reject the application:
Provided that the Authority shall not admit the application
where the question raised in the application is already pending or
decided in any proceedings in the case of an applicant under any of
the provisions of this Act:
Provided further that no application shall be rejected under
this sub-section unless an opportunity of hearing has been given to
the applicant:
Provided also that where the application is rejected, the
reasons for such rejection shall be specified in the order.
(3) A
copy of every order made under sub-section (2) shall
be sent to the applicant and to the concerned officer.
Procedure on receipt of
application.
107
99.
(4) Where an application is admitted under sub-section (2),
the Authority shall, after examining such further material
as may be placed before it by the applicant or
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Appellate Authority for Advance
Ruling for Goods and Services Tax for hearing appeals against
the advance ruling pronounced by the Advance Ruling
Authority consisting of-
(i) the Chief Commissioner of Central tax as
Designated by the Board; and
(ii) the Commissioner of State tax.
Provided that the Government may, on the recommendations
of the Council, notify any Appellate Authority located in another
State or Union territory to act as the Appellate Authority for the
State.
100. (1) The concerned officer, the jurisdictional officer or an
applicant aggrieved by any advance ruling pronounced
under sub-section (4) of section 98, may appeal to the
Appellate Authority.
(2) Every appeal under this section shall be filed within a
period of thirty days from the date on which the ruling
sought to be appealed against is communicated to the
concerned officer, the jurisdictional officer and the
applicant:
Constitution of Appellate
Authority for Advance
Ruling.
Appeal to the A
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advance ruling can be issued in
respect of the question under the appeal or reference.
(4) A copy of the advance ruling pronounced by the Appellate
Authority duly signed by the Members and certified in
such manner as may be prescribed shall be sent to the
applicant, the concerned officer, the jurisdictional officer
and to the Authority after such pronouncement.
102. The Authority or the Appellate Authority may amend any order
passed by it under section 98 or section 101, so as to rectify
any error apparent on the face of the record, if such error is
noticed by the Authority or the Appellate Authority on its own
accord, or is brought to its notice by the concerned officer, the
jurisdictional officer or the applicant within a period of six
months from the date of the order:
Provided that no rectification which has the effect of enhancing
the tax liability or reducing the amount of admissible input tax credit
shall be made unless the applicant or the appellant has been gi
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may, by order, declare such ruling to be void ab-
initio and thereupon all the provisions of this Act or the
rules made there under shall apply to the applicant as if
such advance ruling had never been made:
Provided that no order shall be passed under this sub-section
unless an opportunity of being heard has been given to the applicant.
Explanation: The period beginning with the date of such advance
ruling and ending with the date of order under this sub-section shall
be excluded while computing the period specified in sub-sections
(2) and (10) of section 73 or sub-section (2) and (10) of section 74.
(2) A copy of the order made under sub-section (1) shall
be sent to the applicant, the concerned officer and the
jurisdictional officer.
105. (1) The Authority or the Appellate Authority shall, for the
purpose of exercising its powers regarding –
(a) discovery and inspection;
(b) enforcing the attendance of any person and
examining him on oath;
(c) issuing commissions a
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ds and Services Tax
Act by an adjudicating authority may appeal to such
Appellate Authority as may be prescribed within three
months from the date on which the said decision or
order is communicated to such person.
(2) The Commissioner may, on his own motion, or upon
request from the Commissioner of central tax, call for
and examine the record of any proceeding in which
an adjudicating authority has passed any decision or
order under this Act or the Central Goods and Services
Tax Act, for the purpose of satisfying himself as to the
legality or propriety of the said decision or order and
may, by order, direct any officer subordinate to him
to apply to the Appellate Authority within six months
from the date of communication of the said decision or
order for the determination of such points arising out
of the said decision or order as may be specified by the
Commissioner in his order.
(3) Where, in pursuance of an order under sub-section
(2), the authorised officer make
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(8)
(b)
a sum equal to ten per cent. of the remaining
amount of tax in dispute arising from the said
order, in relation to which the appeal has been filed.
Where the appellant has paid the amount under sub-
section (6), the recovery proceedings for the balance
amount shall be deemed to be stayed.
The Appellate Authority shall give an opportunity to the
appellant of being heard.
(9) The Appellate Authority may, if sufficient cause is shown
at any stage of hearing of an appeal, grant time to the
parties or any of them and adjourn the hearing of the
appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more
than three times to a party during hearing of the appeal.
(10) The Appellate Authority may, at the time of hearing of an
appeal, allow an appellant to add any ground of appeal
not specified in the grounds of appeal, if it is satisfied
that the omission of that ground from the grounds of
appeal was not willful or unreasona
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order and the order is passed within the
time limit specified under section 73or section74.
112
(12) The order of the Appellate Authority disposing of the
appeal shall be in writing and shall state the points for
determination, the decision thereon and the reasons for
such decision.
(13) The Appellate Authority shall, where it is possible to do
so, hear and decide every appeal within a period of one
year from the date on which it is filed:
Provided that where the issuance of order is stayed by an order
of a court or Tribunal, the period of such stay shall be excluded in
computing the period of one year.
(14) On disposal of the appeal, the Appellate Authority shall
communicate the order passed by it to the appellant,
respondent and to the adjudicating authority.
(15) A copy of the order passed by the Appellate Authority
shall also be sent to the Commissioner or the authority
designated by him in this behalf and the jurisdictional
Commissioner of central tax or an aut
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such decision or
order for such period as he deems fit and after giving
the person concerned an opportunity of being heard and
after making such further inquiry as may be necessary,
pass such order, as he thinks just and proper, including
enhancing or modifying or annulling the said decision
or order.
Powers of Revisional
Authority.
(2) The Revisional Authority shall not exercise any power
under sub-section (1), if-
113
(a) the order has been subject to an appeal under
section 107 or section 112 or section 117 or section
118; or
(b) the period specified under sub-section (2) of
section 107 has not yet expired or more than three
years have expired after the passing of the decision
or order sought to be revised; or
(c) the order has already been taken for revision under
this section at an earlier stage; or
(d) the order has been passed in exercise of the powers
under sub-section (1):
Provided that the Revisional Authority may pass an order
under sub-section (1) o
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all be
excluded in computing the period of limitation referred
to in clause (b) of sub-section (2) where proceedings for
revision have been initiated by way of issue of a notice
under this section.
(5)
Where the issuance of an order under sub-section (1)
is stayed by the order of a court or Appellate Tribunal,
the period of such stay shall be excluded in computing
the period of limitation referred to in clause (b) of sub-
section (2).
(6) For the purposes of this section, the term,-
(i) “record” shall include all records relating to any
proceedings under this Act available at the time of
examination by the Revisional Authority;
114
5 of 1908
5 of 1908
1 of 1872.
(ii) “decision” shall include intimation given by any
officer lower in rank than the Revisional Authority.
109. (1) Subject to the provisions of this Chapter, the Goods and
Services Tax Tribunal constituted under the Central
Goods and Services Tax Act shall be the Appellate
Tribunal for heari
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s own procedure.
(2) The Appellate Tribunal shall, for the purposes of
discharging its functions under this Act, have the same
powers as are vested in a civil court under the Code of
Civil Procedure, 1908 while trying a suit in respect of the
following matters, namely:ۥ
(a) summoning and enforcing the attendance of any
person and examining him on oath;
(b) requiring the discovery and production of
documents;
(c) receiving evidence on affidavits;
(d) subject to the provisions of sections 123 and 124 of
the Indian Evidence Act, 1872, requisitioning any
public record or document or a copy of such record
or document from any office;
(e) issuing commissions for the examination of
witnesses or documents;
(f) dismissing a representation for default or deciding
it ex parte;
(g) setting aside any order of dismissal of any
representation for default or any order passed by it
ex parte; and
Appellate Tribunal and
Benches thereof.
President and Members
of Appellate T
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civil court for the purposes of
section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973.
112. (1) Any person aggrieved by an order passed against him
under section 107 or section 108 of this Act or the Central
Goods and Services Tax Act may appeal to the Appellate
Tribunal against such order within three months from
the date on which the order sought to be appealed against
is communicated to the person preferring the appeal.
(2) The Appellate Tribunal may, in its discretion, refuse to
admit any
such appeal where the tax or input tax credit
involved or the difference in tax or input tax credit
involved or the amount of fine, fee or penalty determined
by such order, does not exceed fifty thousand rupees.
(3) The Commissioner may, on his own motion, or upon
request from the Commissioner of central tax, call
for and examine the record of any order passed by the
Appellate Authority or the Revisional Authority under
this Act or under the Central Goods And Serv
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has been preferred may, notwithstanding that he may
not have appealed against such order or any part thereof,
file, within forty-five days of the receipt of notice,
a memorandum of cross-objections, verified in the
prescribed manner, against any part of the order appealed
against and such memorandum shall be disposed of by
the Appellate Tribunal, as if it were an appeal presented
within the time specified in sub-section (1).
(6) The Appellate Tribunal may admit an appeal within
three months after the expiry of the period referred to in
sub-section (1), or permit the filing of a memorandum of
cross-objections within forty-five days after the expiry of
the period referred to in sub-section (5), if it is satisfied
that there was sufficient cause for not presenting it within
that period.
(7)
An appeal to the Appellate Tribunal shall be in such
form, verified in such manner and shall be accompanied
by such fee, as may be prescribed.
(8) No appeal shall be filed under sub-
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s fit, confirming, modifying
or annulling the decision or order appealed against or
may refer the case back to the Appellate Authority, or
the Revisional Authority or to the original adjudicating
authority, with such directions as it may think fit, for a
fresh adjudication or decision after taking additional
evidence, if necessary.
(2) The Appellate Tribunal may, if sufficient cause is shown,
at any stage of hearing of an appeal, grant time to the
parties or any of them and adjourn the hearing of the
appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more
than three times to a party during hearing of the appeal.
(3)
The Appellate Tribunal may amend any order passed
by it under sub-section (1) so as to rectify any error
apparent on the face of the record, if such error is noticed
by it on its own accord, or is brought to its notice by the
Commissioner or the Commissioner of central tax or
the other party to the appeal with
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exercise such financial and
administrative powers over the State Bench and Area Benches
of the Appellate Tribunal in a State, as may be prescribed:
Provided that the State President shall have the authority to
delegate such of his financial and administrative powers as he may
think fit to any other Member or any officer of the State Bench or
Area Benches, subject to the condition that such Member or officer
shall, while exercising such delegated powers, continue to act under
the direction, control and supervision of the State President.
115. Where an amount paid by the appellant under sub-section
(6) of section 107 or under sub-section (8) of section 112
is required to be refunded consequent to any order of the
Appellate Authority or of the Appellate Tribunal, interest at
the rate specified under section 56 shall be payable in respect
of such refund from the date of payment of the amount till the
date of refund of such amount.
116. (1) Any person who is entitled or req
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or Union territory or
of the Board who, during his service under the
Government, had worked in a post not below the
rank than that of a Group-B Gazetted officer for a
period of not less than two years:
Financial
administrative powers
State President.
and
of
Interest on refund
of amount paid for
admission of appeal.
Appearance by
authorised representative.
119
Provided that such officer shall not be entitled to appear
before any proceedings under this Act for a period of one year from
the date of his retirement or resignation; or
(e)
any person who has been authorised to act as a
goods and services tax practitioner on behalf of the
concerned registered person.
(3) No person,
(a) who has been dismissed or removed from
Government service; or
(b) who is convicted of an offence connected with any
proceedings under this Act, the Central Goods and
Services Tax Act, the Integrated Goods and Services
Tax Act or the Union Territory Goods and Services
Tax Act, or un
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uch appeal, if it is satisfied that the case involves
a substantial question of law.
(2) An appeal under sub-section (1) shall be filed within a
period of one hundred and eighty days from the date
on which the order appealed against is received by the
aggrieved person and it shall be in such form, verified in
such manner as may be prescribed:
Provided that the High Court may entertain an appeal after
the expiry of the said period if it is satisfied that there was sufficient
cause for not filing it within such period.
Appeal to High Court.
5 of 1908
120
(3) Where the High Court is satisfied that a substantial
question of law is involved in any case, it shall formulate
that question and the appeal shall be heard only on the
question so formulated, and the respondents shall, at the
hearing of the appeal, be allowed to argue that the case
does not involve such question:
Provided that nothing in this sub-section shall be deemed to
take away or abridge the power of the co
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ffer and the case shall,
then, be heard upon that point only, by one or more of
the other Judges of the High Court and such point shall
be decided according to the opinion of the majority of
the Judges who have heard the case including those who
first heard it.
(8) Where the High Court delivers a judgment in an appeal
filed before it under this section, effect shall be given to
such judgment by either side on the basis of a certified
copy of the judgment.
(9) Save as otherwise provided in this Act, the provisions of
the Code of Civil Procedure, 1908, relating to appeals to
the High Court shall, as far as may be, apply in the case
of appeals under this section.
118. (1)
An appeal shall lie to the Supreme Court-
(a) from any order passed by the National Bench or
Regional Benches of the Appellate Tribunal; or
Appeal to Supreme
Court.
121
5 of 1908
(b) from any judgment or order passed by the High
Court in an appeal made under section 117 in any
case which, on its o
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ribunal under sub-section (1) of section 113 or
an order passed by the High Court under section 117, as the
case may be, shall be payable in accordance with the order so
passed.
120. (1) The Commissioner may, on the recommendations of the
Council, from time to time, issue orders or instructions
or directions fixing such monetary limits, as he may
deem fit, for the purposes of regulating the filing of
appeal or application by the officer of the State tax under
the provisions of this Chapter.
(2) Where, in pursuance of the orders or instructions or
directions issued under sub-section (1), the officer of the
State tax has not filed an appeal or application against
any decision or order passed under the provisions of
this Act, it shall not preclude such officer of the State
tax from filing appeal or application in any other case
involving the same or similar issues or questions of law.
(3) Notwithstanding the fact that no appeal or application
has been filed by the office
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rity
empowered to direct transfer of proceedings from one
officer to another officer; or
Non Appealable decisions
and orders.
(b)
an order pertaining to the seizure or retention of books
of account, register and other documents; or
(c)
an order sanctioning prosecution under this Act; or
(d)
an order passed under section 80.
123
CHAPTER XIX
OFFENCES AND PENALTIES
122. (1) Where a taxable person who-
(i) supplies any goods or services or both without issue
of any invoice or issues an incorrect or false invoice
with regard to any such supply;
(ii) issues any invoice or bill without supply of goods
or services or both in violation of the provisions of
this Act or the rules made thereunder;
(iii) collects any amount as tax but fails to pay the
same to the Government beyond a period of three
months from the date on which such payment
becomes due;
(iv) collects any tax in contravention of the provisions of
this Act but fails to pay the same to the Government
beyond
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thereunder;
(x) falsifies or substitutes financial records or produces
fake accounts or documents or furnishes any false
information or return with an intention to evade
payment of tax due under this Act;
Penalty for certain
offences.
124
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvii)
is liable to be registered under this Act but fails to
obtain registration;
furnishes any false information with regard to
registration particulars, either at the time of
applying for registration, or subsequently;
obstructs or prevents any officer in discharge of his
duties under this Act;
transports any taxable goods without the cover of
documents as may be specified in this behalf;
suppresses his turnover leading to evasion of tax
under this Act;
fails to keep, maintain or retain books of account
and other documents in accordance with the
provisions of this Act or the rules made thereunder;
fails to furnish information or documents called
for by an officer in accordance with t
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egistered person who supplies any goods or services
or both on which any tax has not been paid or short-paid
or erroneously refunded, or where the input tax credit
has been wrongly availed or utilised for any reason, other
than the reason of fraud or any willful misstatement
or suppression of facts to evade tax, shall be liable to a
penalty of ten thousand rupees or ten per cent of the tax
due from such person, whichever is higher.
125
(3) Any person who-
(a) aids or abets any of the offences specified in clauses
(i) to (xxi) of sub-section (1);
(b) acquires possession of, or in any way concerns
himself in transporting, removing, depositing,
keeping, concealing, supplying, or purchasing or
in any other manner deals with any goods which
he knows or has reasons to believe are liable to
confiscation under this Act or the rules made
thereunder;
(c) receives or is in any way concerned with the supply
of, or in any other manner deals with any supply of
services which he
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required to furnish any information or return
under section 151-
(a) without reasonable cause fails to furnish such information
or return as may be required under that section, or
(b) willfully furnishes or causes to furnish any information
or return which he knows to be false,
he shall be punishable with a fine which may extend to ten
thousand rupees and in case of a continuing offence to a
further fine which may extend to one hundred rupees for
each day after the first day during which the offence continues
subject to a maximum limit of twenty-five thousand rupees.
125. Any person, who contravenes any of the provisions of this
Act or any rules made thereunder for which no penalty is
separately provided for in this Act, shall be liable to a penalty
which may extend to twenty five thousand rupees.
Penalty for failure to
furnish information
return.
Fine for failure to furnish
statistics.
General penalty.
126
126. (1) No officer under this Act shall impose any penal
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egulation or procedure under which the
amount of penalty for the breach has been specified.
(5) When a person voluntarily discloses to an officer under
this Act the circumstances of a breach of the tax law,
regulation or procedural requirement prior to the
discovery of the breach by the officer under this Act,
the proper officer may consider this fact as a mitigating
factor when quantifying a penalty for that person.
(6) The provisions of this section shall not apply in such
cases where the penalty specified under this Act is either
a fixed sum or expressed as a fixed percentage.
127. Where the proper officer is of the view that a person is liable to
a penalty and the same is not covered under any proceedings
under section 62 or section 63 or section 64 or section 73 or
section 74 or section 129 or section 130, he may issue an order
levying such penalty after giving a reasonable opportunity of
being heard to such person.
128. The Government may, by notification, waive
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s, on payment
of an amount equal to two per cent of the value of
goods or twenty five thousand rupees, whichever is
less, where the owner of the goods comes forward
for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty
equal to the fifty per cent. of the value of the goods
reduced by the tax amount paid thereon and, in
case of exempted goods, on payment of an amount
equal to five per cent of the value of goods or twenty
five thousand rupees, whichever is less, where the
owner of the goods does not come forward for
payment of such tax and penalty;
(c) upon furnishing a security equivalent to the amount
payable under clause (a) or clause (b)in such form
and manner as may be prescribed:
Provided that no such goods or conveyance shall be detained
or seized without serving an order of detention or seizure on the
person transporting the goods.
(2) The provisions of sub-section (6) of section 67shall,
mutatis mutandis, apply for detention an
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re or are likely to depreciate in value
with passage of time, the said period of seven days may be reduced
by the proper officer.
130. (1)
Notwithstanding anything contained in this Act, if any
person –
(i) supplies or receives any goods in contravention of
any of the provisions of this Act or the rules made
thereunder with intent to evade payment of tax; or
(ii) does not account for any goods on which he is liable
to pay tax under this Act; or
(iii) supplies any goods liable to tax under this Act
without having applied for registration; or
(iv) contravenes any of the provisions of this Act or
the rules made thereunder with intent to evade
payment of tax; or
(v) uses any conveyance as a means of transport for
carriage of goods in contravention of the provisions
of this Act or the rules made thereunder unless the
owner of the conveyance proves that it was so used
without the knowledge or connivance of the owner
himself, his agent, if any, and the person in charge
o
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ation of goods or
conveyance is imposed under sub-section (2), the owner
of such goods or conveyance or the person referred to
in sub-section (1), shall, in addition, be liable to any tax,
penalty and charges payable in respect of such goods or
conveyance.
Confiscation of goods or
conveyances and levy of
penalty.
129
2 of 1974
(4) No order for confiscation of goods or conveyance or for
imposition of penalty shall be issued without giving the
person an opportunity of being heard.
(5) Where any goods or conveyance are confiscated under
this Act, the title of such goods or conveyance shall
thereupon vest in the Government.
(6) The proper officer adjudging confiscation shall take
and hold possession of the things confiscated and every
officer of Police, on the requisition of such proper officer,
shall assist him in taking and holding such possession.
(7) The proper officer may, after satisfying himself that the
confiscated goods or conveyance are not required in
any
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ongful availment or utilisation of input tax credit
or refund of tax;
(c) avails input tax credit using such invoice or bill
referred to in clause (b);
(d) collects any amount as tax but fails to pay the
same to the Government beyond a period of three
months from the date on which such payment
becomes due;
(e) evades tax, fraudulently avails input tax credit or
fraudulently obtains refund and where such offence
is not covered under clauses (a) to (d);
Confiscation or penalty
not to interfere with
other punishments.
Punishment for certain
offences
130
(f) falsifies or substitutes financial records or produces
fake accounts or documents or furnishes any false
information with an intention to evade payment of
tax due under this Act;
(g) obstructs or prevents any officer in the discharge of
his duties under this Act;
(h) acquires possession of, or in any way concerns
himself in transporting, removing, depositing,
keeping, concealing, supplying, or purchasing or
in
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r the amount of refund wrongly
taken exceeds five hundred lakh rupees, with
imprisonment for a term which may extend to
five years and with fine;
(ii) in cases where the amount of tax evaded or
the amount of input tax credit wrongly availed
or utilised or the amount of refund wrongly
taken exceeds two hundred lakh rupees but
does not exceed five hundred lakh rupees, with
imprisonment for a term which may extend to
three years and with fine;
131
2 of 1974
(iii) in the case of any other offence where the
amount of tax evaded or the amount of input
tax credit wrongly availed or utilised or the
amount of refund wrongly taken exceeds one
hundred lakh rupees but does not exceed two
hundred lakh rupees, with imprisonment for a
term which may extend to one year and with
fine;
(iv) in cases where he commits or abets the
commission of an offence specified in clause
(f) or clause (g) or clause (j), he shall be
punishable with imprisonment for a term
which may
extend to s
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secuted for any offence under
this section except with the previous sanction of the
Commissioner.
Explanation:- For the purposes of this section, the term “tax” shall
include the amount of tax evaded or the amount of input tax credit
wrongly availed or utilised or refund wrongly taken under the
provisions of this Act, the Central Goods and Services Tax Act, the
Integrated Goods and Services Tax Act, and cess levied under the
Goods and Services Tax (Compensation to States) Act.
132
133. (1) If any person engaged in connection with the collection
of statistics under section 151 or compilation or
computerisation thereof or if any officer of State tax
having access to information specified under sub-
section (1) of section 150, or any person engaged in
connection with provisions of service on the common
portal or the agent of common portal, wilfully discloses
any information or the contents of any return furnished
under this Act or rules made thereunder otherw
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ble mental state on the part of the accused, the court
shall presume the existence of such mental state but it shall be
a defence for the accused to prove the fact that he had no such
mental state with respect to the act charged as an offence in
that prosecution.
Explanation:- For the purposes of this section,-
(i) the expression “culpable mental state” includes intention,
motive, knowledge of a fact, and belief in, or reason to
believe, a fact;
(ii)
a fact is said to be proved only when the court believes
it to exist beyond reasonable doubt and not merely
when its existence is established by a preponderance of
probability.
136. A statement made and signed by a person on appearance in
response to any summons issued under section 70 during the
course of any inquiry or proceedings under this Act shall be
relevant, for the purpose of proving, in any prosecution for an
offence under this Act, the truth of the facts which it contains,-
Liability of officers and
certain o
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e guilty of
the offence and shall be liable to be proceeded against
and punished accordingly.
(2) Notwithstanding anything contained in sub-section (1),
where an offence under this Act has been committed
by a company and it is proved that the offence has been
committed with the consent or connivance of, or is
attributable to any negligence on the part of, any director,
manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to
be proceeded against and punished accordingly.
(3)
Where an offence under this Act has been committed by
a taxable person being a partnership firm or a Limited
Liability Partnership or a Hindu undivided family or a
trust, the partner or karta or managing trustee shall be
deemed to be guilty of that offence and shall be liable
to be proceeded against and punished accordingly and
the provisions of sub-section (2) shall mutatis muta
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allowed to compound
once in respect of any of the offences specified in
clauses(a) to (f) of sub-section (1) of section 132
and the offences specified in clause (1) which are
relatable to offences specified in clauses (a) to (f)
of the said sub-section;
a person who has been allowed to compound once
in respect of any offence, other than those in clause
(a), under this Act or under the provisions of any
State Goods and Services Tax Act or the Central
Goods and Services Tax Act or the Union Territory
Goods and Services Tax Act or the Integrated
Goods and Services Tax Act in respect of supplies
of value exceeding one crore rupees;
a person who has been accused of committing an
offence under this Act which is also an offence
under any other law for the time being in force;
a person who has been convicted for an offence
under this Act by a court;
a person who has been accused of committing
an offence specified in clause (g) or clause (j) or
clause(k) of sub-section (1)
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proceedings, if already initiated in respect of
the said offence, shall stand abated.
136
CHAPTER XX
TRANSITIONAL PROVISIONS
139. (1) On and from the appointed day, every person registered
under any of the existing laws and having a valid
Permanent Account Number shall be issued a certificate
of registration on provisional basis, subject to such
conditions and in such form and manner as may be
prescribed and, unless replaced by a final certificate
of registration under sub-section (2), shall be liable
to be cancelled if the conditions so prescribed are not
complied with.
(2) The final certificate of registration shall be granted in
such form and manner and subject to such conditions as
may be prescribed.
(3) The certificate of registration issued to a person under
sub-section (1) shall be deemed to have not been issued
if the said registration is cancelled in pursuance of an
application filed by such person that he was not liable to
registration under section 22 or
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aid thereon (wherever applicable):
Migration of existing
taxpayers.
Transitional
arrangements for input
tax credit.
137
74 of 1956
Provided further that so much of the said credit as is attributable
to any claim related to section 3, sub-section (3) of section 5, section
6, section 6A or sub-section (8) of section 8of the Central Sales Tax
Act, 1956 that is not substantiated in the manner, and within the
period, prescribed in rule 12 of the Central Sales Tax (Registration
and Turnover) Rules, 1957 shall not be eligible to be credited to the
electronic credit ledger:
(2)
Provided also that an amount equivalent to the credit specified
in the second proviso shall be refunded under the existing law when
the said claims are substantiated in the manner prescribed in rule
12 of the Central Sales Tax (Registration and Turnover) Rules, 1957.
A registered person, other than a person opting to pay
tax under section 10, shall be entitled to take, in his
electronic credit ledg
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in the sale of
exempted or tax free goods, by whatever name called, or
goods which have suffered tax at the first point of their
sale in the State and the subsequent sales of which are
not subject to tax in the State under the existing law but
which are liable to tax under this Act or where the person
was entitled to the credit of input tax at the time of sale
of goods, if any, shall be entitled to take, in his electronic
credit ledger, credit of the value added tax and entry tax
in respect of inputs held in stock and inputs contained
in semi-finished or finished goods held in stock on
the appointed day subject to the following conditions
namely:-
(i) such inputs or goods are used or intended to be
used for making taxable supplies under this Act;
(ii) the said registered person is eligible for input tax
credit on such inputs under this Act;
138
(iii) the said registered person is in possession of
invoice or other prescribed documents evidencing
payment of tax under
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tax and entry
tax, if any, carried forward in a return furnished
under the existing law by him in accordance with
the provisions of sub-section (1); and
(b) the amount of credit of the value added tax and
entry tax, if any, in respect of inputs held in stock
and inputs contained in semi-finished or finished
goods held in stock on the appointed day, relating to
such exempted goods or tax free goods, by whatever
name called, in accordance with the provisions of
sub-section (3).
(5) A registered person shall be entitled to take, in his
electronic credit ledger, credit of value added tax in
respect of inputs received on or after the appointed day
but the tax in respect of which has been paid by the
supplier under the existing law, subject to the condition
that the invoice or any other tax paying document of
the same was recorded in the books of account of such
person within a period of thirty days from the appointed
day:
Provided that the period of thirty days may, on
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red person is in possession of
invoice or other prescribed documents evidencing
payment of tax under the existing law in respect of
inputs; and
(v) such invoices or other prescribed documents were
issued not earlier than twelve months immediately
preceding the appointed day.
(7) The amount of credit under sub-sections (3), (4) and (6)
shall be calculated in such manner as may be prescribed.
141. (1) Where any inputs received at a place of business had
been despatched as such or despatched after being
partially processed to a job worker for further processing,
testing, repair, reconditioning or any other purpose in
accordance with the provisions of existing law prior to
the appointed day and such inputs are returned to the
said place on or after the appointed day, no tax shall be
payable if such inputs, after completion of the job work
or otherwise, are returned to the said place within six
months from the appointed day:
Provided that the period of six months may, on
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the period of six months may, on sufficient
cause being shown, be extended by the Commissioner for a further
period not exceeding two months:
Provided further that if the said goods are not returned within
a period specified in this sub-section, the input tax credit shall be
liable to be recovered in accordance with the provisions of clause (a)
of sub-section (8) of section 142:
Provided also that the person despatching the goods may, in
accordance with the provisions of the existing law, transfer the said
goods to the premises of any registered person for the purpose of
supplying therefrom on payment of tax in India or without payment
of tax for exports within six months or the extended period, as the
case may be, from the appointed day.
(3) Where any goods had been despatched from the place
of business without payment of tax for carrying out tests
or any other process, to any other premises, whether
registered or not, in accordance with the provisions of
existing la
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day.
141
(4)
142. (1)
The tax under sub-sections (1), (2) and (3) shall not be
payable only if the person despatching the goods and the
job worker declare the details of the inputs or goods held
in stock by the job worker on behalf of the said person
on the appointed day in such form and manner and
within such time as may be prescribed.
Where any goods on which tax, if any, had been paid
under the existing law at the time of sale thereof, not
being earlier than six months prior to the appointed
day, are returned to any place of business on or after the
appointed day, the registered person shall be eligible for
refund of the tax paid under the existing law where such
goods are returned by a person, other than a registered
person, to the said place of business within a period of
six months from the appointed day and such goods are
identifiable to the satisfaction of the proper officer:
Provided that if the said goods are returned by a registered
person, the return o
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issued in respect of an
outward supply made under this Act:
Provided that the registered person shall be allowed to
reduce his tax liability on account of issue of the credit note only
if the recipient of the credit note has reduced his input tax credit
corresponding to such reduction of tax liability.
(3) Every claim for refund filed by any person before, on
or after the appointed day, for refund of any amount of
input tax credit, tax, interest or any other amount paid
under the existing law, shall be disposed of in accordance
with the provisions of existing law and any amount
eventually accruing to him shall be refunded to him in
cash in accordance with the provisions of the said law:
Miscellaneous
transitional provisions.
142
Provided that where any claim for refund of the amount of
input tax credit is fully or partially rejected, the amount so rejected
shall lapse:
Provided further that no refund claim shall be allowed of any
amount of input tax credit where the
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before, on or after the appointed day under the
existing law shall be disposed of in accordance with the
provisions of the existing law, and any amount of credit
found to be admissible to the claimant shall be refunded
to him in cash in accordance with the provisions of the
existing law, and the amount rejected, if any, shall not be
admissible as input tax credit under this Act:
Provided that no refund claim shall be allowed of any amount
of input tax credit where the balance of the said amount as on the
appointed day has been carried forward under this Act.
(b) Every proceeding of appeal, revision, review or
reference relating to recovery of input tax credit initiated
whether before, on or after the appointed day, under the
existing law shall be disposed of in accordance with the
provisions of the existing law, and if any amount of credit
becomes recoverable as a result of such appeal, revision,
review or reference, the same shall, unless recovered
under the existing
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le to the claimant shall be refunded to him in
cash in accordance with the provisions of the existing law
and the amount rejected, if any, shall not be admissible
as input tax credit under this Act.
(8) (a) Where in pursuance of an assessment or adjudication
proceedings instituted, whether before, on or after the
appointed day, under the existing law, any amount of
tax, interest, fine or penalty becomes recoverable from
the person, the same shall, unless recovered under the
existing law, be recovered as an arrear of tax under this
Act and the amount so recovered shall not be admissible
as input tax credit under this Act.
(b) Where in pursuance of an assessment or adjudication
proceedings instituted, whether before, on or after the
appointed day under the existing law, any amount of
tax, interest, fine or penalty becomes refundable to the
taxable person, the same shall be refunded to him in
cash under the said law, and the amount rejected, if any,
shall not be admissib
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herwise provided in this Chapter, the goods
or services or both supplied on or after the appointed
day in pursuance of a contract entered into prior to the
appointed day shall be liable to tax under the provisions
of this Act.
(11) (a) Notwithstanding anything contained in section 12,
no tax shall be payable on goods under this Act to the
extent the tax was leviable on the said goods under the
Manipur Value Added Tax Act, 2004.
(b) Notwithstanding anything contained in section 13,
no tax shall be payable on services under this Act to the
extent the tax was leviable on the said services under
Chapter V of the Finance Act, 1994.
(c) Where tax was paid on any supply, both under the
Manipur Value Added Tax Act, 2004 and under Chapter
V of the Finance Act, 1994, tax shall be leviable under
this Act and the taxable person shall be entitled to take
credit of value added tax or service tax paid under the
existing law to the extent of supplies made after the
appointed day and
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of goods in respect
of which tax was required to be deducted at source
under the Manipur Value Added Tax, 2004 and has also
issued an invoice for the same before the appointed day,
no deduction of tax at source under section 51 shall be
made by the deduct or under the said section where
payment to the said supplier is made on or after the
appointed day.
Explanation: For the purposes of this Chapter, the expression
“capital goods” shall have the same meaning as assigned to it in the
Manipur Value Added Tax, 2004.
146
CHAPTER XXI
MISCELLANEOUS PROVISIONS
143. (1) A registered person (hereafter in this section referred to
as the “principal”) may, under intimation and subject to
such conditions as may be prescribed, send any inputs or
capital goods, without payment of tax, to a job worker for
job work and from there subsequently send to another
job worker and likewise, and shall,-
(a) bring back inputs, after completion of job work or
otherwise, or capital
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lity for keeping proper accounts for the
inputs or capital goods shall lie with the principal.
(3) Where the inputs sent for job work are not received
back by the principal after completion of job work or
otherwise in accordance with clause (a) of sub-section
(1) or are not supplied from the place of business of the
job worker in accordance with clause (b) of sub-section
(1) within a period of one year of their being sent out, it
shall be deemed that such inputs had been supplied by
the principal to the job-worker on the day when the said
inputs were sent out.
Job work procedure.
147
(4) Where the capital goods, other than moulds and dies, jigs
and fixtures, or tools, sent for job work are not received
back by the principal in accordance with clause (a) of
sub-section (1) or are not supplied from the place of
business of the job worker in accordance with clause (b)
of sub-section (1) within a period of three years of their
being sent out, it shall be deemed that such
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g in force,
and such document is tendered by the prosecution in evidence
against him or any other person who is tried jointly with him, the
court shall,-
(a)
unless the contrary is proved by such person, presume-
(i) the truth of the contents of such document;
(ii) that the signature and every other part of such
document which purports to be in the handwriting
of any particular person or which the court may
reasonably assume to have been signed by, or to
be in the handwriting of, any particular person, is
in that person's handwriting, and in the case of a
document executed or attested, that it was executed
or attested by the person by whom it purports to
have been so executed or attested;
Presumption as to
documents in certain
cases.
148
(b) admit the document in evidence not with standing that
it is not duly stamped, if such document is otherwise
admissible in evidence.
145. (1) Notwithstanding anything contained in any other law
for the time being in force, â
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the statement
and describing the manner in which it was
produced;
(b) giving such particulars of any device involved in the
production of that document as may be appropriate
for the purpose of showing that the document was
produced by a computer,
shall be evidence of any matter stated in the certificate and for the
purposes of this sub-section it shall be sufficient for a matter to be
stated to the best of the knowledge and belief of the person stating it.
146. The Government may, on the recommendations of the Council,
notify the Common Goods and Services Tax Electronic
Portal for facilitating registration, payment of tax, furnishing
of returns, computation and settlement of integrated tax,
electronic way bill and for carrying out such other functions
and for such purposes as may be prescribed.
Admissibility of micro
films, facsimile copies of
documents and computer
printouts as documents
and as evidence.
Common Portal.
149
43 of 1961
2 of 1934
36 of 2003
147
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ibed.
(3) The goods and services tax compliance rating score may
be updated at periodic intervals and intimated to the
registered person and also placed in the public domain
in such manner as may be prescribed.
150. (1) Any person, beingۥ
(a)
a taxable person; or
(b) a local authority or other public body or association;
or
(c) any authority of the State Government responsible
for the collection of value added tax or sales tax
or State excise duty or an authority of the Central
Government responsible for the collection of excise
duty or customs duty; or
(d) an income tax authority appointed under the
provisions of the Income-tax Act, 1961; or
(e)
a banking company within the meaning of clause
(a) of section 45A of the Reserve Bank of India Act,
1934; or
(f) a State Electricity Board or an electricity distribution
or transmission licensee under the Electricity Act,
2003, or any other entity entrusted with such
functions by the Central Government or the Sta
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k of India as constituted
under section 3 of the Reserve Bank of India Act,
1934; or
(n) the Goods and Services Tax Network, a company
registered under the Companies Act, 2013; or
(o) a person to whom a Unique Identity Number has
been granted under sub-section (9) of section 25;or
(p) any other person as may be specified, on
the recommendations of the Council, by the
Government,
who is responsible for maintaining record of registration or statement
of accounts or any periodic return or document containing details of
payment of tax and other details of transaction of goods or services
or both or transactions related to a bank account or consumption of
electricity or transaction of purchase, sale or exchange of goods or
property or right or interest in a property under any law for the time
being in force, shall furnish an information return of the same in
respect of such periods, within such time, in such form and manner
and to such authority or agency as may be prescri
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ing of such information return within a period
not exceeding ninety days from the date of service of the
notice and such person shall furnish the information
return.
151. (1) The Commissioner may, if he considers that it is
necessary so to do, by notification, direct that statistics
may be collected relating to any matter dealt with, by or
in connection with this Act.
(2)
Upon such notification being issued, the Commissioner,
or any person authorised by him in this behalf, may
call upon the concerned persons to furnish such
information or returns, in such form and manner as may
be prescribed, relating to any matter in respect of which
statistics is to be collected.
152. (1) No information of any individual return or part thereof
with respect to any matter given for the purposes of
section 151 shall, without the previous consent in
writing of the concerned person or his authorised
representative, be published in such manner so as to
enable such particulars to be iden
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any other proceedings
before him.
Power to collect statistics
Bar on disclosure of
information required
under section 151.
Taking assistance from a
expert.
152
45 of 1860
1 of 1872
45 of 1860
49 of 1988
154. The Commissioner or an officer authorised by him may take
samples of goods from the possession of any taxable person,
where he considers it necessary, and provide a receipt for any
samples so taken.
155. Where any person claims that he is eligible for input tax credit
under this Act, the burden of proving such claim shall lie on
such person.
156. All persons discharging functions under this Act shall be
deemed to be public servants within the meaning of section 21
of the Indian Penal Code.
157. (1) No suit, prosecution or other legal proceedings shall lie
against the President, State President, Members, officers
or other employees of the Appellate Tribunal or any
other person authorised by the said Appellate Tribunal
for anything which is in good faith d
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on (1).
(3) Nothing contained in this section shall apply to the
disclosure of,-
(a) any particulars in respect of any statement,
return, accounts, documents, evidence, affidavit
or deposition, for the purpose of any prosecution
under the Indian Penal Code or the Prevention of
Corruption Act, 1988, or any other law for the time
being in force; or
Power to take samples.
Burden of Proof.
Persons deemed to be
public servants.
Protection of action
taken under this Act.
Disclosure of information
by a public servant
153
(b) any particulars to the Central Government or the
State Government or to any person acting in the
implementation of this Act, for the purposes of
carrying out the objects of this Act; or
(c) any particulars when such disclosure is occasioned
by the lawful exercise under this Act of any process
for the service of any notice or recovery of any
demand; or
(d) any particulars to a civil court in any suit or
proceedings, to which the Government or any
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er
any law for the time being in force; or
(i) any particulars relevant to any inquiry into a charge
of misconduct in connection with any proceedings
under this Act against a practising advocate, a
tax practitioner, a practising cost accountant,
a practising chartered accountant, a practising
company secretary to the authority empowered
to take disciplinary action against the members
practising the profession of a legal practitioner,
a cost accountant, a chartered accountant or a
company secretary, as the case may be; or
154
(j) any particulars to any agency appointed for the
purposes of data entry on any automated system
or for the purpose of operating, upgrading or
maintaining any automated system where such
agency is contractually bound not to use or disclose
such particulars except for the aforesaid purposes;
or
(k) any such particulars to an officer of the Government
as may be necessary for the purposes of any other
law for the time being in force; and
(1) a
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partners of the firm, directors, managing
agents, secretaries and treasures or managers of the company, or
the members of the association, as the case may be, may also be
published if, in the opinion of the Commissioner, or any other officer
authorised by him in this behalf, circumstances of the case justify it.
160. (1) No assessment, re-assessment, adjudication, review,
revision, appeal, rectification, notice, summons or other
proceedings done, accepted, made, issued, initiated, or
purported to have been done, accepted, made, issued,
initiated in pursuance of any of the provisions of this
Act shall be invalid or deemed to be invalid merely by
reason of any mistake, defect or omission therein, if
such assessment, re-assessment, adjudication, review,
revision, appeal, rectification, notice, summons or other
proceedings are in substance and effect in conformity
with or according to the intents, purposes and
requirements of this Act or any existing law.
Publication of
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his Act or
an officer appointed under the Central Goods and Services Tax
Act or by the affected person within a period of three months
from the date of issue of such decision or order or notice or
certificate or any other document, as the case may be:
Provided that no such rectification shall be done after a period
of six months from the date of issue of such decision or order or
notice or certificate or any other document:
Provided further that the said period of six months shall not
apply in such cases where the rectification is purely in the nature
of correction of a clerical or arithmetical error, arising from any
accidental slip or omission:
Provided also that where such rectification adversely affects
any person, the principles of natural justice shall be followed by the
authority carrying out such rectification.
162. Save as provided in sections 117 and 118, no civil court shall
have jurisdiction to deal with or decide any question arising
from or relating to an
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Act come into force.
(4) Any rules made under sub-section(1) may provide that
a contravention thereof shall be liable to a penalty not
exceeding ten thousand rupees.
165. The Government may, by notification, make regulations
consistent with this Act and the rules made thereunder to
carry out the provisions of this Act.
166. Every rule made by the Government, every regulation made
by the Government and every notification issued by the
Government under this Act, shall be laid, as soon as may be
after it is made or issued, before the State Legislature, while
it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, the
State Legislature agrees in making any modification in the
rule or regulation or in the notification, as the case may be,
or the State Legislature agrees that the rule or reg
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ons to the State tax officers as it may deem fit, and
thereupon all such officers and all other persons employed in
the implementation of this Act shall observe and follow such
orders, instructions or directions.
169. (1) Any decision, order, summons, notice or other
communication under this Act or the rules made
thereunder shall be served by any one of the following
methods, namely:-
(a) by giving or tendering it directly or by a messenger
including a courier to the addressee or the
taxable person or to his manager or authorised
representative or an advocate or a tax practitioner
holding authority to appear in the proceedings on
behalf of the taxable person or to a person regularly
employed by him in connection with the business,
or to any adult member of family residing with the
taxable person; or
(b) by registered post or speed post or courier with
acknowledgement due, to the person for whom it is
intended or his authorised representative, if any, at
his last kno
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ve been served on the
date on which it is tendered or published or a copy thereof
is affixed in the manner provided in sub-section (1).
(3) When such decision, order, summons, notice or any
communication is sent by registered post or speed post,
it shall be deemed to have been received by the addressee
at the expiry of the period normally taken by such post
in transit unless the contrary is proved.
170. The amount of tax, interest, penalty, fine or any other sum
payable, and the amount of refund or any other sum due, under
the provisions of this Act shall be rounded off to the nearest
rupee and, for this purpose, where such amount contains a
part of a rupee consisting of paise, then, if such part is fifty
paise or more, it shall be increased to one rupee and if such
part is less than fifty paise it shall be ignored.
171. (1) Any reduction in rate of tax on any supply of goods or
services or the benefit of input tax credit shall be passed
on to the recipient by way of c
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ovided that no such order shall be made after the expiry of
a period of three years from the date of commencement of this Act.
Rounding off of tax etc.
Anti-profiteering
Measure.
Removal of difficulties.
159
43 of 1994
6 of 2005
145-ECON dated
03/07/1951
8 of 2000
(2) Every order made under this section shall be laid, as soon
as may be, after it is made, before the State Legislature.
173. Save as otherwise provided in this Act, on and from the date of
commencement of this Act-
in the Manipur Municipalities Act, 1994, in section 75, in sub-
section (1), clauses (c), and (i) shall be omitted;
174. (1) Save as otherwise provided in this Act, on and from the
date of commencement of this Act,
(i) the Manipur Value Added Tax Act, 2004, except in
respect of goods included in the Entry 54 of the State
List of the Seventh Schedule to the Constitution,
(ii) the Assam Amusement and Betting Tax Act,
1939(as extended to Manipur),
(iii) the Manipur Tax on Luxury (Hotel & Lod
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y, interest as are due
or may become due or any forfeiture or punishment
incurred or inflicted in respect of any offence or
violation committed against the provisions of the
repealed Acts; or
(e) affect
any investigation, inquiry, assessment
proceedings, adjudication and any other legal
proceedings or recovery of arrears or remedy
in respect of any such tax, surcharge, penalty,
fine, interest, right, privilege, obligation, liability,
forfeiture or punishment, as aforesaid, and any such
investigation, inquiry, assessment proceedings,
adjudication and other legal proceedings or
recovery of arrears or remedy may be instituted,
continued or enforced, and any such tax, surcharge,
penalty, fine, interest, forfeiture or punishment may
be levied or imposed as if these Acts had not been
so repealed; or
(f) affect any proceedings including that relating to
an appeal, revision, review or reference, instituted
before, on or after the appointed day under the
said repealed Acts
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th.
3.
Supply of goods-
4.
(a) by a principal to his agent where the agent undertakes to supply
such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive
such goods on behalf of the principal.
Import of services by a taxable person from a related person or
from any
of his other establishments outside India, in the course or
furtherance of business.
162
SCHEDULE II
[See section7]
ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
Transfer
1.
(a)
any transfer of the title in goods is a supply of goods;
(b)
2.
3.
(c)
any transfer of right in goods or of undivided share in goods
without the transfer of title thereof, is a supply of services;
any transfer of title in goods under an agreement which
stipulates that property in goods shall pass at a future date
upon payment of full consideration as agreed,
goods.
Land and Building
(a)
a supply of
any lease, tenancy, easement, licence to occup
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able of such goods is a supply of services;
where any person ceases to be a taxable person, any goods
forming part of the assets of any business carried on by
him shall be deemed to be supplied by him in the course or
furtherance of his business immediately before he ceases to
be a taxable person, unless-
(c)
(i)
the business is transferred as a going concern to
another person; or
(ii) the business is carried on by a personal representative
who is deemed to be a taxable person.
Supply of services
The following shall be treated as supply of service, namely:-
(a) renting of immovable property;
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(b) construction of a complex, building, civil structure or a
part thereof, including a complex or building intended for
sale to a buyer, wholly or partly, except where the entire
consideration has been received after issuance of completion
certificate, where required, by the competent authority or
after its first occupation, whichever is earlier.
Explanati
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n
technology software;
agreeing to the obligation to refrain from an act, or to tolerate
an act or a situation, or to do an act; and
transfer of the right to use any goods for any purpose (whether
or not for a specified period) for cash, deferred payment or
other valuable consideration.
Composite supply
The following composite supplies shall be treated as a supply of
services, namely:-
7.
(a)
(b)
works contract as defined in clause (119) of section 2; and
supply, by way of or as part of any service or in any other
manner whatsoever, of goods, being food or any other article
for human consumption or any drink (other than alcoholic
liquor for human consumption), where such supply or service
is for cash, deferred payment or other valuable consideration.
Supply of Goods
The following shall be treated as supply of goods, namely:-
Supply of goods by any unincorporated association or body of
persons to a member thereof for cash, deferred payment or other valuable
consid
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