THE CENTRAL GOODS AND SERVICES TAX BILL, 2017.
GST
Dated:- 27-3-2017
THE CENTRAL GOODS AND SERVICES TAX BILL, 2017
GST bills – Clause by Clause
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Document 1
AS INTRODUCED IN LOK SABHA
Bill No. 57 of 2017
THE CENTRAL GOODS AND SERVICES TAX BILL, 2017
ARRANGEMENT OF CLAUSES
CHAPTER I
PRELIMINARY
CLAUSES
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
ADMINISTRATION
3. Officers under this Act.
4. Appointment of officers.
5. Powers of officers.
6. Authorisation of officers of State tax or Union territory tax as proper officer in
certain circumstances.
7. Scope of supply.
CHAPTER III
LEVY AND COLLECTION OF TAX
8. Tax liability on composite and mixed supplies.
9. Levy and collection.
10. Composition levy.
11. Power to grant exemption from tax.
CHAPTER IV
TIME AND VALUE OF SUPPLY
12. Time of supply of goods.
13. Time of supply of services.
14. Change in rate of tax in respect of supply of goods or services.
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of tax to be indicated in tax invoice and other documents.
34. Credit and debit notes.
CHAPTER VIII
ACCOUNTS AND RECORDS
35. Accounts and other records.
36. Period of retention of accounts.
CHAPTER IX
RETURNS
37. Furnishing details of outward supplies.
38. Furnishing details of inward supplies.
39. Furnishing of returns.
40. First return.
41. Claim of input tax credit and provisional acceptance thereof.
42. Matching, reversal and reclaim of input tax credit.
43. Matching, reversal and reclaim of reduction in output tax liability.
44. Annual return.
45. Final return.
(iii)
CLAUSES
46. Notice to return defaulters.
47. Levy of late fee.
48. Goods and services tax practitioners.
CHAPTER X
PAYMENT OF TAX
49. Payment of tax, interest, penalty and other amounts.
50. Interest on delayed payment of tax.
51. Tax deduction at source.
52. Collection of tax at source.
53. Transfer of input tax credit.
54. Refund of tax.
55. Refund in certain cases.
56. Interest on del
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aid or erroneously refunded or input tax
credit wrongly availed or utilised by reason of fraud or any wilful misstatement or
suppression of facts.
75. General provisions relating to determination of tax.
76. Tax collected but not paid to Government.
77. Tax wrongfully collected and paid to Central Government or State Government.
78. Initiation of recovery proceedings.
79. Recovery of tax.
80. Payment of tax and other amount in instalments.
81. Transfer of property to be void in certain cases.
82. Tax to be first charge on property.
83. Provisional attachment to protect revenue in certain cases.
84. Continuation and validation of certain recovery proceedings.
CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
85. Liability in case of transfer of business.
86. Liability of agent and principal.
87. Liability in case of amalgamation or merger of companies.
88. Liability in case of company in liquidation.
89. Liability of directors of private company.
90. Liability of partner
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ualification, appointment,
conditions of service, etc.
111. Procedure before Appellate Tribunal.
112. Appeals to Appellate Tribunal.
113. Orders of Appellate Tribunal.
114. Financial and administrative powers of President.
115. Interest on refund of amount paid for admission of appeal.
116. Appearance by authorised representative.
117. Appeal to High Court.
118. Appeal to Supreme Court.
119. Sums due to be paid notwithstanding appeal, etc.
120. Appeal not to be filed in certain cases.
121. Non appealable decisions and orders.
CHAPTER XIX
OFFENCES AND PENALTIES
122. Penalty for certain offences.
123. Penalty for failure to furnish information return.
124. Fine for failure to furnish statistics.
125. General penalty.
126. General disciplines related to penalty.
127. Power to impose penalty in certain cases.
128. Power to waive penalty or fee or both.
129. Detention, seizure and release of goods and conveyances in transit.
CLAUSES
(vi)
130. Confiscation of goods o
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on to furnish information return.
151. Power to collect statistics.
152. Bar on disclosure of information.
153. Taking assistance from an expert.
154. Power to take samples.
155. Burden of proof.
156. Persons deemed to be public servants.
157. Protection of action taken under this Act.
158. Disclosure of information by a public servant.
159. Publication of information in respect of persons in certain cases.
160. Assessment proceedings, etc., not to be invalid on certain grounds.
(vii)
CLAUSES
161. Rectification of errors apparent on the face of record.
162. Bar on jurisdiction of civil courts.
163. Levy of fee.
164. Power of Government to make rules.
165. Power to make regulations.
166. Laying of rules, regulations and notifications.
167. Delegation of powers.
168. Power to issue instructions or directions.
169. Service of notice in certain circumstances.
170. Rounding off of tax, etc.
171. Anti-profiteering measure.
172. Removal of difficulties.
173. Amendment
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l be construed as
a reference to the coming into force of that provision.
2. In this Act, unless the context otherwise requires,ââ¬â
(1) “actionable claimâ⬠shall have the same meaning as assigned to it in section 3
of the Transfer of Property Act, 1882;
(2) “address of deliveryâ⬠means the address of the recipient of goods or services
or both indicated on the tax invoice issued by a registered person for delivery of such
goods or services or both;
(3) “address on recordâ⬠means the address of the recipient as available in the
records of the supplier;
(4) “adjudicating authority” means any authority, appointed or authorised to pass
any order or decision under this Act, but does not include the Central Board of Excise
and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate
Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;
(5) “agent” means a person, including a factor, broker, commission agen
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0
(8) “Appellate Authorityâ⬠means an authority appointed or authorised to hear
appeals as referred to in section 107;
(9) “Appellate Tribunalâ⬠means the Goods and Services Tax Appellate Tribunal
constituted under section 109;
(10) “appointed dayâ⬠means the date on which the provisions of this Act shall
come into force;
(11) “assessmentâ⬠means determination of tax liability under this Act and includes
self-assessment, re-assessment, provisional assessment, summary assessment and
best judgment assessment;
(12) “associated enterprisesâ⬠shall have the same meaning as assigned to it in
section 92A of the Income-tax Act, 1961;
(13) “audit” means the examination of records, returns and other documents
maintained or furnished by the registered person under this Act or the rules made
thereunder or under any other law for the time being in force to verify the correctness
of turnover declared, taxes paid, refund claimed and input tax credit availed, an
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sition 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 premises;
(g) services supplied by a person as the holder of an office which has been
accepted by him in the course or furtherance of his trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a licence to
book maker in such club ; and
(i) any activity or transaction undertaken by the Central Government, a
State Government or any local authority in which they are engaged as public
authorities;
(18) “business verticalâ⬠means a distinguishable component of an enterprise
that is engaged in the supply of individual goods or services or a group of related
goods or services which is subject to risks and returns that are
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r capacity, in a State or a Union
territory where he has no fixed place of business;
(21) “central taxâ⬠means the central goods and services tax levied under
section 9;
54 of 1963.
(22) “cess” shall have the same meaning as assigned to it in the Goods and
Services Tax (Compensation to States) Act;
(23) ââ¬Åchartered accountantâ⬠means a chartered accountant as defined in
clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949;
(24) “Commissionerâ⬠means the Commissioner of central tax and includes
the Principal Commissioner of central tax appointed under section 3 and the
Commissioner of integrated tax appointed under the Integrated Goods and Services
Tax Act;
(25) “Commissioner in the Board” means the Commissioner referred to in
section 168;
(26) “common portalâ⬠means the common goods and services tax electronic
portal referred to in section 146;
(27) “common working daysâ⬠in respect of a State or Union territor
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ces or both
includesââ¬â⬢
(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;
38 of 1949.
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(b) the monetary value of any act or forbearance, in respect of, in 35
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:
Provided that a deposit given in respect of the supply of goods or
services or both shall not be considered as payment made for such supply
unless the supplier applies such deposit as consideration for the said supply;
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(32) ââ¬Åcontinuous supply of goodsâ⬠means a supply of goods which is
provided, or ag
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Act, 1959;
(36) “Council” means the Goods and Services Tax Council established under
article 279A of the Constitution;
(37) “credit noteâ⬠means a document issued by a registered person under
sub-section (1) of section 34;
(38) “debit noteâ⬠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 authorityâ⬠means such authority as may be notified by the
Board;
(41) ââ¬Ådocumentâ⬠includes written or printed record of any sort and electronic
record as defined in clause (t) of section 2 of the Information Technology Act, 2000;
(42) “drawbackâ⬠in relation to any goods manufactured in India and exported,
means the rebate of duty, tax or cess chargeable on any imported inputs or on any
domestic inputs or input services used in the manufacture of such goods;
(43) “electronic cash ledger” means the electronic cash
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ke such law, notification, order, rule or regulation;
(49) “family” means,ââ¬â
(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 establishmentâ⬠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 own needs;
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(51) ââ¬ÅFundâ⬠means the Consumer Welfare Fund established under section 57;
(52) “goods” means every kind of movable property other than money and
securities but includes actionable claim, growing crops, grass and things attached to
or forming part of the land which are agreed to be severed before supply or under a
contract of supply;
(53) “Governmentâ⬠means the Central Government;
(54) “Goods and Services Tax (Compen
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ance of business;
(60) “input serviceâ⬠means any service used or intended to be used by a supplier
in the course or furtherance of business;
(61) “Input Service Distributorâ⬠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 taxable goods or services or both having the same
Permanent Account Number as that of the said office;
(62) “input tax” in relation to a registered person, means the central tax, State tax,
integrated tax or Union territory tax charged on any supply of goods or services or
both made to him and includesââ¬â⬢
(a) the integrated goods and services tax charged on import of goods;
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(b) the tax payable under the provisions of sub-sections (3)
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ion to a person, shall mean receipt of goods or
services or both whether by purchase, acquisition or any other means with or without
consideration;
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80 of 1976.
41 of 2006.
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(68) “job work” means any treatment or process undertaken by a person on
goods belonging to another registered person and the expression ââ¬Åjob workerâ⬠shall
be construed accordingly;
(69) “local authority” meansââ¬â
(a) a “Panchayatâ⬠as defined in clause (d) of article 243 of the Constitution;
(b) a “Municipalityâ⬠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 of a municipal or local fund;
(d) a Cantonment Board as defined in section 3 of the Cantonments
Act 2006;
(e) a Regional Council or a District Council
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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) ââ¬Åmanufactureâ⬠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 “manufacturerâ⬠shall be construed accordingly;
(73) “market valueâ⬠shall mean the full amount which a recipient of a supply is
required to pay in order to obtain the goods or
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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 vehicleâ⬠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 personâ⬠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 supplyâ⬠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;
(79) “non-taxable territory” means the territory which is outside the taxable
territory;
(80) “notificationâ⬠means a notification published in the Official Gazette and the
expressions “notifyâââ
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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 40
the Companies Act, 2013;
(h) any body corporate incorporated by or under the laws of a country
outside India;
(i) a co-operative society registered under any law relating to co-operative
societies;
18 of 2013.
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21 of 1860.
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(j) a local authority;
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(k) Central Government or a State Government;
(1) 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” includesââ¬â⬢
(a) a place from where the business is ordinarily carried on, and includes a
warehouse, a godown or any other place where a taxable person stores his
goods, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains
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x who is assigned that function
by the Commissioner in the Board;
(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, meansââ¬â
(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 supply is made shall be construed as
a reference to the recipient of the supply and shall include an agent acting as
such on behalf of the recipient in relation to the goods or services or both
supplie
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ods and Services Tax Act;
(99) “Revisional Authority” means an authority appointed or authorised for
revision of decision or orders as referred to in section 108;
(100) “Scheduleâ⬠means a Schedule appended to this Act;
(101) ââ¬Åsecuritiesâ⬠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;
Act;
(103) “State” includes a Union territory with Legislature;
(104) “State tax” means the tax levied under any State Goods and Services Tax
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(105) “supplierâ⬠in relation to any goods or services or both, shall mean the 25
person supplying the said goods or services or bo
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ate Goods and Services Tax Act” means the respective State Goods
and Services Tax Act, 2017;
(112) “turnover in Stateâ⬠or ââ¬Åturnover in Union territory” means the aggregate
value of all taxable supplies (excluding the value of inward supplies on which tax is 45
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
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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
legally constituted;
(114) ââ¬ÅUnion territoryâ⬠means the territory of
(a) the Andaman and Nicobar Islands;
(b) Lakshadwee
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documentation,
including the terms and conditions of use of such instrument;
(119) “works contractâ⬠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 (whether as goods or in some other form) 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 Union Territory Goods and Services Tax
Act and the Goods and Services Tax (Compensation to States) Act shall have the same
meaning as assigned to them in those Acts;
(121) any reference in this Act to a law which is not in force in the State of Jammu
and Kashmir, shall, in relation to that State be construed as a reference to the
corresponding law, if any, in force in that State.
40
CHAPTER II
ADMINISTRA
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x, and
(i) any other class of officers as it may deem fit:
Provided that the officers appointed under the Central Excise Act, 1944 shall be deemed
to be the officers appointed under the provisions of this Act.
4. (1) The Board may, in addition to the officers as may be notified by the Government
under section 3, appoint such persons as it may think fit to be the officers under this Act.
(2) Without prejudice to the provisions of sub-section (1), the Board may, by
order, authorise any officer referred to in clauses (a) to (h) of section 3 to appoint officers of
central tax below the rank of Assistant Commissioner of central tax for the administration of
this Act.
5. (1) Subject to such conditions and limitations as the Board may impose, an officer of
central tax may exercise the powers and discharge the duties conferred or imposed on him
under this Act.
(2) An officer of central tax may exercise the powers and discharge the duties conferred
or imposed under this Act on any
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he shall also issue an
order under the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act, as authorised by the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act, as the case may be, under intimation to the
jurisdictional officer of State tax or Union territory tax;
(b) where a proper officer under the State Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act has initiated any proceedings on a subject
matter, no proceedings shall be initiated by the proper officer under this Act on the
same subject matter.
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(3) Any proceedings for rectification, appeal and revision, wherever applicable, of any
order passed by an officer appointed under this Act shall not lie before an officer appointed
under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax 45
Act.
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CHAPTER III
LEVY AND COLLECTION OF TAX
7. (1) For the purposes of
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neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the
recommendations of the Council, specify, by notification, the transactions that are to be
treated as-
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
8. The tax liability on a composite or a mixed supply shall be determined in the following
manner, namely:ââ¬â⬢
(a) a composite supply comprising two or more supplies, one of which is a
principal supply, shall be treated as a supply of such principal supply; and
(b) a mixed supply comprising two or more supplies shall be treated as a supply
of that particular supply which attracts the highest rate of tax.
9. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the
central goods and services tax on all intra-State supplies of goods or services or both, except
on the supply of alcoholic liq
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ope of
supply.
Tax liability
on composite
and mixed
supplies.
Levy and
collection.
14
Composition
levy.
(4) The central tax in respect of the supply of taxable goods or services or both by a
supplier, who is not registered, to a registered person shall be paid by such person on
reverse charge basis as the recipient and all the provisions of this Act shall apply to such
recipient as if he is the person liable for paying the tax in relation to the supply of such goods
or services or both.
(5) The Government may, on the recommendations of the Council, by notification,
specify categories of services the tax on intra-State supplies of which shall be paid by the
electronic commerce operator if such services are supplied through it, and all the provisions
of this Act shall apply to such electronic 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 hav
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of
a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory
in case of persons engaged in making supplies referred to in clause (b) of paragraph 6
of Schedule II, and
(c) half per cent. of the turnover in State or turnover in Union territory in case of
other suppliers,
subject to such conditions and restrictions as may be prescribed:
Provided that the Government may, by notification, increase the said limit of fifty lakh
rupees to such higher amount, not exceeding one crore rupees, as may be recommended by
the Council.
(2) The registered person shall be eligible to opt under sub-section (1), if-
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(a) he is not engaged in the supply of services other than supplies referred to in 35
clause (b) of paragraph 6 of Schedule II;
(b) he is not engaged in making any supply of goods which are not leviable to tax
under this Act;
(c) he is not engaged in making any inter-State outward supplies of goods;
(d) he is n
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ut tax.
(5) If the proper officer has reasons to believe that a taxable person has paid tax under
sub-section (1) despite not being eligible, such person shall, in addition to any tax that:
may
be payable by him under any other provisions of this Act, be liable to a penalty and the
10 provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination of tax
and penalty.
11. (1) Where the Government is satisfied that it is necessary in the public interest so
to do, it may, on the recommendations of the Council, by notification, exempt generally, either
absolutely or subject to such conditions as may be specified therein, goods or services or
15 both of any specified description from the whole or any part of the tax leviable thereon with
effect from such date as may be specified in such notification.
(2) Where the Government is satisfied that it is necessary in the public interest so to
do, it may, on the recommendations of the Council, by special order
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shall
not collect the tax, in excess of the effective rate, on such supply of goods or services or
both.
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CHAPTER IV
TIME AND VALUE OF SUPPLY
12. (1) The liability to pay tax on goods shall arise at the time of supply, as determined
in accordance with the provisions of this section.
(2) The time of supply of goods shall be the earlier of the following dates, namely:ââ¬â
(a) the date of issue of invoice by the supplier or the last date on which he is
required, under sub-section (1) of section 31, to issue the invoice with respect to the
supply; or
(b) 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 upto 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.
Power to
grant
e
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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) or clause (c), the time of supply shall be the date of entry in the
books of account of the recipient of supply.
(4) In case of supply of vouchers by a supplier, the time of supply shall beââ¬â⬢
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the provisions of
sub-section (2) or sub-section (3) or sub-section (4), the time of supply shallââ¬â
(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 inter
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supplier of taxable service receives an amount upto 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 relating to such excess amount.
Explanation. For the purposes of clauses (a) and (b)ââ¬â
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(i) the 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;
(ii) “the date of receipt of paymentâ⬠shall be the date on which the payment
is entered in the books of account of the supplier 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 be the earlier of the following dates, namely:ââ¬â
(a) the date of payment as entered in the books of account
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etermine the time of supply under the provisions of
sub-section (2) or sub-section (3) or sub-section (4), the time of supply shallââ¬â⬢
(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 in value.
rate of tax in
14. Notwithstanding anything contained in section 12 or section 13, the time of supply, Change in
where there is a change in the rate of tax in respect of goods or services or both, shall be
determined in the following manner, namely:ââ¬â⬢
(a) in case the goods or services or both have been supplied before the change
in rate of tax,-
(i) where the invoice for the same has been issued and the payment is also
receiv
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ved before the
change in rate of tax, the time of supply shall be the date of receipt of payment or
date of issue of invoice, whichever is earlier; or
(iii) where the invoice has been issued after the change in rate of tax but
the payment is received before the change in rate of tax, the time of supply shall
be the date of issue of invoice:
Provided that the date of receipt of payment shall be the date of credit in
the bank account if such credit in the bank account is after four working days
from the date of change in the rate of tax.
Explanation. For the purposes of this section, ââ¬Åthe date of receipt of
paymentâ⬠shall be the date on which the payment is entered in the books of
account of the supplier or the date on which the payment is credited to his bank
account, whichever is earlier.
15. (1) 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 service
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ces;
(d) interest or late fee or penalty for delayed payment of any consideration for
any supply; and
(e) subsidies directly linked to the price excluding subsidies provided by the
Central Government and State Governments.
Explanation. For the purposes of this sub-section, the amount of subsidy
shall be included in the value of supply of the supplier who receives the subsidy.
(3) The value of the supply shall not include any discount which is givenââ¬â⬢
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(a) before or at the time of the supply if such discount has been duly recorded in 40
the invoice issued in respect of such supply; and
(b) after the supply has been effected, ifââ¬â
(i) such discount is established in terms of an agreement 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
suppl
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directly controlled by a third person;
(vii) together they directly or indirectly control a third person; or they are
members of the same family;
(b) the term “person” also includes legal persons;
(c) persons who are associated in the business of one another in that one is the
sole agent or sole distributor or sole concessionaire, howsoever described, of the
other, shall be deemed to be related.
CHAPTER V
INPUT TAX CREDIT
16. (1) Every registered person shall, subject to such conditions and restrictions as
may be prescribed and in the manner specified in section 49, be entitled to take credit of input
tax charged on any supply of goods or services or both to him which are used or intended to
be used in the course or furtherance of his 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 s
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t an invoice are received in lots or
instalments, the registered person shall be entitled to take credit upon receipt of the
last lot or instalment:
Provided further that where a recipient fails to pay to the supplier of goods or
services or both, other than the supplies on which tax is payable on reverse charge
basis, the amount towards the value of supply along with tax payable thereon within a
Eligibility and
conditions for
taking input
tax credit.
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Apportionment
of credit and
blocked
credits.
period of one hundred and eighty days from the date of issue of invoice by the
supplier, an amount equal to the input tax credit availed by the recipient shall be added
to his output tax liability, along with interest thereon, in such manner as may be
prescribed:
Provided also 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 the
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by the registered person partly for
effecting taxable supplies including zero-rated supplies under this Act or under the Integrated
Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the
amount of credit shall be restricted to so much of the input tax as is attributable to the said
taxable supplies including zero-rated supplies.
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(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed,
and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, 25
transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule
II, sale of building.
(4) A banking company or a financial institution including a non-banking financial
company, engaged in supplying 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 30
avail of, every month
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transportation of goods;
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(b) the following supply of goods or services or both:ââ¬â
(i) food and beverages, outdoor catering, beauty treatment, health services,
cosmetic and plastic surgery except where an inward supply of goods or services
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
an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where
(A) the Government notifies the services which are obligatory for an
employer to provide to its employees under any law for the time being in
force; or
(B) such inward supply of goods or services 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
taxab
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goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free
samples; and
(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.
(6) The Government may prescribe the manner in which the credit referred to in sub-
35 sections (1) and (2) may be attributed.
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Explanation. For the purposes of this Chapter and Chapter VI, the expression
ââ¬Åplant and machineryâ⬠means apparatus, equipment, and machinery fixed to earth by
foundation or structural support that are used for making outward supply of goods or
services or both and includes such foundation and structural supports but excludesââ¬â⬢
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
18. (1) Subject to such conditions and restrictions as may be prescribedââ¬â⬢
(a) a person who has applied for registration under
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ay immediately
preceding the date from which he becomes liable to pay tax under section 9:
Provided that the credit on capital goods shall be reduced by such percentage
points as may be prescribed;
(d) where an exempt supply of goods or services or both by a registered person
becomes a taxable supply, such person 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 relatable to such exempt supply and on capital goods exclusively used
for such exempt supply on the day immediately preceding the date from which such
supply becomes taxable:
Provided that the credit on capital goods shall be reduced by such percentage
points as may be prescribed.
(2) A registered person shall not be entitled to take input tax credit under
sub-section (1) in respect 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
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ly preceding the date of
exercising of such option or, as the case may be, the date of such exemption:
Provided that after payment of such amount, the balance of input tax credit, if any,
lying in his electronic credit ledger shall lapse.
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(5) The amount of credit under sub-section (1) and the amount payable under 40
sub-section (4) shall be calculated in such manner as may be prescribed.
(6) In case of supply of capital goods or plant and machinery, on which input tax credit
has been taken, the registered 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 45
determined under section 15, whichever is higher:
Provided that where refractory bricks, moulds and dies, jigs and fixtures are supplied
as scrap, the taxable person may pay tax on the transaction va
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to a job worker, the period of one year
shall be counted from the date of receipt of inputs by the job worker.
(4) The principal shall, subject to such conditions and restrictions as may be prescribed,
be allowed input tax credit on capital goods sent to a job worker for job work.
(5) 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 capital goods even if the capital
goods are directly sent to a job worker for job-work without being first brought to his place
of business.
(6) Where the capital goods sent for job work are not received back by the principal
20 within a period of three years of being sent out, it shall be deemed that such capital goods
had been supplied by the principal to the job worker on the day when the said capital goods
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were sent out:
three
Provided that where the capital goods are sent directly to a job worker, the period of
years shall
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(c) the credit of tax paid on input services attributable to a recipient of credit shall
be distributed only to that recipient;
(d) the credit of tax paid on input services attributable to more than one recipient
of credit shall be distributed amongst such recipients to whom the input service is
attributable and such distribution shall be pro rata 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 such recipients to whom such input service is
attributable and which are operational in the current year, during the said relevant
period;
Taking input
tax credit in
respect of
inputs and
capital goods
sent for job
work.
Manner of
distribution of
credit by
Input Service
Distributor.
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Manner of
recovery of
credit
distributed in
excess.
(e) the credit of tax paid on input services attributable to all recipients of credit
shall be distributed amongst su
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ans the supplier of goods or
services or both having the same Permanent Account Number as that of the
Input Service Distributor;
(c) the term 'turnover', in relation to any registered person engaged in the
supply of taxable goods as well as goods not taxable under this Act, means the
value of turnover, reduced by the amount of any duty or tax levied under entry
84 of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of
List II of the said Schedule.
21. Where the Input Service Distributor distributes the credit in contravention
of the provisions contained in section 20 resulting in excess distribution of credit to
one or more recipients of credit, the excess credit so distributed shall be recovered
from such recipients along with interest, and the provisions of section 73 or section 74,
as the case may be, shall, mutatis mutandis, apply for determination of amount to be
recovered.
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CHAPTER VI
REGISTRATION
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Persons liable
for
re
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liable to be registered
with effect from the date of such transfer or succession.
(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of
transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case
may be, de-merger of two or more companies pursuant to an order of a High Court, Tribunal
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or otherwise, the transferee shall be liable to be registered, with effect from the date on which
the Registrar of Companies issues a certificate of incorporation giving effect to such order of
the High Court or Tribunal.
Explanation. For the purposes of this section,ââ¬â⬢
(i) the expression ââ¬Åaggregate turnoverâ⬠shall include all supplies made by the
taxable person,
whether on his own account or made on behalf of all his principals;
(ii) the supply of goods, after completion of job-work, by a registered job worker
shall be treated as the supply of goods by the principal referred to in section 143
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hall be required to be registered under this Act,ââ¬â⬢
(i) persons making any inter-State taxable supply;
registration in
certain cases.
(ii) casual taxable persons making taxable supply;
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(iii) persons who are required to pay tax under reverse charge;
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(iv) person who are required to pay tax under sub-section (5) of section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51, whether or not
separately registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise;
Act;
(viii) Input Service Distributor, whether or not separately registered under this
(ix) persons who supply goods or services or both, other than supplies specified
under sub-section (5) of section 9, through such electronic commerce operator who is
required to collect tax at source under section 52;
(x) every electronic com
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st point of the
appropriate base line is located.
(2) A person seeking registration under this Act shall be granted a single registration
in a State or Union territory:
Provided that a person having multiple business verticals in a State or Union territory
may be granted a separate registration for each business vertical, subject to such conditions
as may be prescribed.
(3) A person, though not liable to be registered under section 22 or section 24 may get
himself registered voluntarily, and all provisions of this Act, as are applicable to a registered
person, shall apply to such person.
(4) A person who has obtained or is required to obtain more than one registration,
whether in one State or Union territory or more than one State or Union territory shall, in
respect of each such registration, be treated as distinct persons for the purposes of this
Act.
(5) Where a person who has obtained or is required to obtain registration in a State or
Union territory in respect of a
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ng in force, proceed to register such
person in such manner as may be prescribed.
(9) Notwithstanding anything contained in sub-section (1),ââ¬â
(a) any specialised agency of the United Nations Organisation or any
Multilateral Financial Institution and Organisation notified under the United Nations
(Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries;
and
(b) any other person or class of persons, as may be notified by the Commissioner,
shall be granted a Unique Identity Number in such manner and for such purposes, including
refund of taxes on the notified supplies of goods or services or both received by them, as
may be prescribed.
(10) The registration or the Unique Identity Number shall be granted or rejected after
due verification in such manner and within such period as may be prescribed.
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46 of 1947.
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(11) A certificate of registration shall be issued in such form and with effect from su
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f application for registration under this Act.
Deemed
registration.
Special
provisions
relating to
casual taxable
27. (1) The certificate of registration issued to a casual taxable person or a non-
resident taxable person shall be valid for the period specified in the application for
registration or ninety days from the effective date of registration, whichever is earlier and
such person shall make taxable supplies only after the issuance of the certificate of person and
registration:
Provided that the proper officer may, on sufficient cause being shown by the said
taxable person, extend the said period of ninety days by a further period not exceeding
ninety days.
(2) A casual taxable person or a non-resident taxable person shall, at the time of
submission of application for registration under sub-section (1) of section 25, make an
25 advance deposit of tax in an amount equivalent to the estimated tax liability of such person
for the period for which the registration
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al of the proper officer shall not be required in respect of amendment
of such particulars as may be prescribed:
Provided further that the proper officer shall not reject the application for amendment
in the registration particulars without giving the person an opportunity of being heard.
(3) Any rejection or approval of amendments under the State Goods and Services Tax
45 Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed
to be a rejection or approval under this Act.
29. (1) The proper officer may, either on his own motion or on an application filed by
the registered person or by his legal heirs, in case of death of such person, cancel the
non-resident
taxable
person.
Amendment
of
registration.
Cancellation
of
registration.
28
Revocation
of
cancellation
of
registration.
registration, in such manner and within such period as may be prescribed, having regard to
the circumstances where,ââ¬â⬢
(a) the business has been di
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as not commenced business within six months from the date of registration;
or
(e) registration has been obtained by means of fraud, wilful misstatement or
suppression of facts:
Provided that the proper officer shall not cancel the registration without giving
the person an opportunity of being heard.
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(3) The cancellation of registration under this section shall not affect the liability of the
person to pay tax and other dues under this Act or to discharge any obligation under this Act 25
or the rules made thereunder for any period prior to the date of cancellation whether or not
such tax and other dues are determined before or after the date of cancellation.
(4) The cancellation of registration under the State Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
cancellation of registration under this Act.
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(5) Every registered person whose registration is cancelled shall pay an amount, b
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registration is cancelled by the proper officer on his own motion, may apply to such officer 45
for revocation of cancellation of the registration in the prescribed manner within thirty days
from the date of service of the cancellation order.
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(2) The proper officer may, in such manner and within such period as may be prescribed,
by order, either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be
rejected unless the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration under the State Goods and Services
Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be
deemed to be a revocation of cancellation of registration under this Act.
CHAPTER VII
TAX INVOICE, CREDIT AND DEBIT NOTES
10
31. (1) A registered person supplying taxable goods shall, before or at the time of,ââ¬â
(a)
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the categories
25 of services in respect of whichââ¬â
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(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 issued.
(3) Notwithstanding anything contained in sub-sections (1) and (2)ââ¬â
(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
date of registration till the date of issuance of certificate of registration to him;
(b) a registered person may not issue a tax invoice if the value of the goods or
services or both supplied is less than two hundred rupees subject to such conditions
and in such manner as may be prescribed;
(c) a registered person supplying exempted goods or services or both or paying
tax under the provisions of section 10 shall issue, instead of a tax invoice, a
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sue 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 (3) or
sub-section (4) of section 9 shall issue an invoice in respect of goods or services or
both received by him from the supplier who is not registered on the date of receipt of
goods or services or both;
(g) a registered person who is liable to pay tax under sub-section (3) or sub-
section (4) of section 9 shall issue a payment voucher at the time of making payment to
the supplier.
(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 the time each
such statement is issued or, as the case may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous
supply of services,ââ¬â⬢
(a) where the due date of payment is ascertainable from the contract, the invo
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expression “tax invoiceâ⬠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.
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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 40
invoice and other like documents, the amount of tax which shall form part of the price at
which such supply is made.
34. (1) 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 exceed the taxabl
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on to any other person.
(3) Where a tax invoice has been issued for supply of any goods or services or both
10 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
15 services or both shall declare the details of such debit note in the return for the month during
which such debit note has been issued and the tax liability shall be adjusted in such manner
as may be prescribed.
Explanation. For the purposes of this Act, the expression “debit note” shall include
a supplementary invoice.
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CHAPTER VIII
ACCOUNTS AND RECORDS
35. (1) Every registered person shall keep and maintain, at his principal place of business,
as mentioned i
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may notify a class of taxable persons to maintain additional
40 accounts or documents for such purpose as may be specified therein.
45
(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.
(5) Every registered person whose turnover during a financial year exceeds the
prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant
Accounts and
other records.
Period of
retention of
accounts.
Furnishing
details of
outward
supplies.
32
and shall submit a copy of the audited annual accounts, the reconciliation statement under
sub-section (2) of section 44 and such other documents in such form and manner as may be
prescribed.
(6) Subject to the provisions of clause (h) of sub-section
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urt, 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 20
the period specified above, whichever is later.
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 or section 51 or
section 52, shall furnish, electronically, in such form and manner as may be prescribed, the
details of outward supplies of goods or services or both effected during a tax period on or
before the tenth day of the month succeeding the said tax period and such details shall be
communicated to the recipient of the said supplies within such time and in such manner as
may
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g 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
45
33
51 of 1975.
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 (1) shall be allowed after furnishing of the return under section 39 for the
5 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.
10
Explanation. For the purposes of this Chapter, the expr
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of section 10 or section 51 or
20 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
25 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 Commissioner may, for reasons to be recorded in writing, by
notification, extend the time limit for furnishing such details for such class of taxable persons
30 as may be specified therein:
Provided further that any extension of time limit notified by the Commissio
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, in case there is a short payment of tax on account of such
45 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.
Furnishing
details of
inward
supplies.
34
=4
Furnishing of
returns.
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 such form
and manner as may be prescribed, a return, electronically, of inward and outward supplies of
goods or services or both, input tax credit availed, tax payable, tax paid and such ot
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teen 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.
15
20
(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 25
persons as may be specified therein:
Provided that any extension of time limit notified by the Commissioner of State tax or
Union territory tax shall be deemed to be notified by the Commissioner.
(7) Every registered person, who is required to furnish a return under sub-section (1)
or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax
due as per
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orrect 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.
45
51 of 1975.
51 of 1975.
5
10
15
20
25
35
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 the credit of eligible input tax, as self-assessed, in his
return and such amount shall be credited on a provisional basis to
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im 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
30 in such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under sub-
section (3) and which is not rectified by the sup
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amount so added from the date of availing of credit till the
45 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:
reclaim of
input tax
credit.
Matching,
reversal and
reclaim of
reduction in
output tax
liability.
36
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 the amount so added at the rate specified in sub-section (3) o
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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.
(4) The duplication of claims for reduction in output tax liability shall be communicated
to the supplier in such manner as may be prescribed.
(5) 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.
(6) The amount in respect of any reduction in output tax liability that is found to be on
account of duplication of claims shall be added to the output tax liability of the supplier in his
return for the month in which such duplication i
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hall not exceed the
amount of interest paid by the recipient.
20
25
30
35
40
(10) The amount reduced from output tax liability in contravention of the provisions of 45
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.
37
44. (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
5 of such financial
year.
(2) Every registered person who is required to get his accounts audited in accordance
with the provisions of sub-section (5) of section 35 shall fu
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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.
(2) Any registered person who fails to furnish the return required under section 44 by
25 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 or Union territory.
48. (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
30 functioning shall be such as may be prescribed.
35
(2) A registered person may authorise an approved goods and services tax practitioner
to furnish the details of outward supplies under section 37, the details of inward supplies
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y be prescribed.
(2) The input tax credit as self-assessed in the return of a registered person shall be
credited to his electronic credit ledger, in accordance with section 41, to be maintained in
such manner as may be prescribed.
Payment of
tax, interest,
penalty and
other
amounts.
38
(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) 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.
(5) The amount of input tax credit available in the electronic credit ledger of the registered
person on account of
(a) i
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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:ââ¬â⬢
5
10
15
20
25
(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 73 or section 74;
30
Interest on
delayed
payment of
tax.
(9) Every person who has paid the tax on goods or services or both under this Act
shall, unless the contrary is proved b
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ecommendations of the Council.
35
40
45
39
(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-
5 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.
10
15
20
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 of persons as may be notified by the Government
on
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end of the month in which such deduction is made, in
such manner as may be prescribed.
(3) The deductor shall furnish to the deductee 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
35 after the expiry of such five day period until the failure is rectified, subject to a maximum
amount of five thousand rupees.
40
45
(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 Gover
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vernment on the recommendations of the Council, of the net value of
taxable supplies made through it by other suppliers where the consideration with respect to
such supplies is to be collected by the operator.
5
Explanation. For the purposes of this sub-section, the expression ââ¬Ånet value of
taxable suppliesâ⬠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 10
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 prescribe
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tement under sub-section (4) discovers any
omission 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 30
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 manne
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is more than the value of outward supplies furnished by the supplier, in his return
for the month succeeding the month in which the discrepancy is communicated in such
manner as may be prescribed.
(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 toââ¬â⬢
(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 ope
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e valid return furnished under sub-section (1)
30 of section 39, the amount collected as central tax shall stand reduced by an amount equal to
such credit so utilised and the Central Government shall transfer an amount equal to the
amount so reduced from the central tax account to the integrated tax account in such manner
and within such time as may be prescribed.
35
CHAPTER XI
REFUNDS
54. (1) Any person claiming refund of any tax and interest, if any, 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
40 cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim
such refund in the return furnished under section 39 in such manner as may be prescribed.
45
(2) A specialised agency of the United Nations Organisation or any Multilateral Fina
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exempt
supplies), except supplies of goods or services or both as may be notified by the
Government on the recommendations of the Council:
5
Provided further that no refund of unutilised input tax credit shall be allowed in 10
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 in respect of central tax or claims refund
of the integrated tax paid on such supplies.
(4) The application shall be accompanied byââ¬â⬢
(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 t
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be notified by the Government on the recommendations of the Council, refund on a
provisional basis, ninety per cent. of the total amount so claimed, excluding the amount of 35
input tax credit provisionally accepted, in such manner and subject to such conditions,
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.
(7) The proper officer shall issue the order under sub-section (5) within sixty days from 40
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
(a) refund of tax paid on zero-rated supplies of goods or services or both or on 45
inputs or input services used in making such zero-rated supplies;
(b) refund of unutilised inp
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person who has
defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which
has not been stayed by any court, Tribunal or Appellate Authority by the specified date, the
15 proper
officer mayââ¬â
20
(a) withhold payment of refund due until the 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 ââ¬Åspecified date”
shall mean the last date for filing an appeal under this Act.
(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
25 is of the opinion that grant of such refund is likely to adversely affect the re
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(14) Notwithstanding anything contained in this section, no refund under sub-section (5)
or sub-section (6) shall be paid to an applicant, if the amount is less than one thousand rupees.
Explanation. For the purposes of this section,ââ¬â
(1) ââ¬Årefundâ⬠includes refund of tax paid on zero-rated supplies of goods or
services or both or on inputs or input services used in making such zero-rated supplies,
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).
(2) “relevant date” meansââ¬â
(a) in the case of goods exported out of India where a refund of tax paid is
available in respect of goods themselves or, as the case may be, the inputs or
input services used in such goods,ââ¬â⬢
44
Refund in
certain cases.
Interest on
delayed
refunds.
(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
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ent,
decree, order or direction of the Appellate Authority, Appellate Tribunal or any
court, the date of communication of such judgment, decree, order or direction;
(e) in the case of refund of unutilised input tax credit under
sub-section (3), the end of the financial year in which such claim for refund
arises;
(f) in the case where tax is paid provisionally under this Act or the rules
made thereunder, the date of adjustment of tax after the final assessment thereof;
(g) in the 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.
55. The Government may, on the recommendations of the Council, by notification,
specify any specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and Immunities)
Act, 1947, Consulate or Embassy of foreign countries and any other perso
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rt which has attained finality
and the same is not refunded within sixty days from the date of receipt of application filed 45
consequent to such order, interest at such rate not exceeding nine per cent. as may be
notified by the Government on the recommendations of the Council shall be payable in
46 of 1947.
45
respect of such refund from the date immediately after the expiry of sixty days from the date
of receipt of application till the date of refund.
Explanation. For the purposes of this section, where any order of refund is made by
an Appellate Authority, Appellate Tribunal or any court against an order of the proper
5 officer under sub-section (5) of section 54, the order passed by the Appellate Authority,
Appellate Tribunal or by the court shall be deemed to be an order passed under the said
sub-section (5).
10
57. The Government shall constitute a Fund, to be called the Consumer Welfare Fund
and there shall be credited to the Fund,ââ¬â
(a) the amount referre
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to determine the value of goods or services or both or determine the rate of tax applicable
thereto, he may request the proper officer in writing giving reasons for payment of tax on a
provisional basis and the proper officer shall pass an order, within a period not later than
ninety days from the date of receipt of such request, allowing payment of tax on provisional
basis at such rate or on such value as may be specified by him.
30
(2) The payment of tax on provisional basis may be allowed, if the taxable 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
35 the communication of the order issued under sub-section (1), pass the final assessment
order after t
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r for final
assessment.
(5) Where the registered person is entitled to a refund consequent to the order of final
assessment under sub-section (3), subject to the provisions of sub-section (8) of section 54,
interest shall be paid on such refund as provided in section 56.
61. (1) The proper officer may scrutinize the return and related particulars furnished by
the registered person to verify the correctness of the return and inform him of the discrepancies
noticed, if any, in such manner as may be prescribed 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 r
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tered person furnishes a valid return within thirty days of the
service of the assessment order under sub-section (1), the said assessment order shall be
deemed to have been withdrawn but the liability for payment of interest under sub-section
(1) of section 50 or for payment of late fee under section 47 shall continue.
63. Notwithstanding anything to the contrary contained in section 73 or section
74, where a taxable person fails to obtain registration even though liable to do so or whose
registration has been cancelled under 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:
5
10
15
20
25
30
Provided that no such assessment orde
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Joint Commissioner considers that such order is erroneous, he may withdraw
such order and follow the procedure laid down in section 73 or section 74.
45
47
CHAPTER XIII
AUDIT
65. (1) The Commissioner or any officer authorised by him, by way of a general or a
specific order, may undertake audit of any registered person for such period, at such frequency
5 and in such manner as may be prescribed.
10
15
(2) The officers referred to in sub-section (1) may conduct audit 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,
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nducted under sub-section (1) results in detection of tax not
paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the
30 proper officer may initiate action under section 73 or section 74.
66. (1) If at any stage of scrutiny, inquiry, investigation or any other proceedings
before him, any officer not below the rank of Assistant Commissioner, having regard to the
nature and complexity of the case and the interest 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,
35 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 audi
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penses of the examination and audit of records under sub-section (1), including
the remuneration of such chartered accountant or cost accountant, shall be determined and
paid by the Commissioner and such determination shall be final.
(6) Where the special audit conducted under sub-section (1) results in detection of tax
not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised,
the proper officer may
initiate action under section 73 or section 74.
CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
67. (1) Where the proper officer, not below the rank of Joint Commissioner, has reasons
to believe thatââ¬â
(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
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d seize or may himself
search and seize such goods, documents or books or things:
Provided that where it is not practicable to seize any such goods, the proper officer, or
any officer authorized by him, may serve on the owner or the custodian of the goods an order
that he shall not remove, part with, or otherwise deal with the goods except with the previous
permission of such officer:
Provided further that the documents or books or things so seized shall be retained by
such officer only for so long as may be necessary for their examination and for any inquiry or
proceedings under this Act.
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(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 upon for the issue of notice under this Act or the rules made thereunder, shall 40
be returned to such person within a period not exceeding thirty days of the issue of the said
not
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s may be prescribed or on payment of applicable tax, interest and
penalty payable, as the case may be.
(7) Where any goods are seized under sub-section (2) and no notice in respect thereof
is given within six months of the seizure of the goods, the goods shall be returned to the
10 person from whose possession they were seized:
Provided that the period of six months may, on sufficient cause being shown, be
extended by the proper officer for a further period not exceeding six months.
(8) The Government may, 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
15 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.
(9) Where any goods, being goods specified under sub-section
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nder for prosecution.
(12) The Commissioner or an officer authorised by him may cause purchase of any
goods or services or both by any person authorised by him from the business premises of
any taxable person, to check the issue of tax invoices or bills of supply by such taxable
person, and on return of goods so purchased by such officer, such taxable person or any
person in charge of the business premises shall refund the amount so paid towards the
35 goods after cancelling any tax invoice or bill of supply issued earlier.
68. (1) The Government may require the person in charge of a conveyance carrying Inspection of
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
40 validated in such manner as may be prescribed.
(3) Where any conveyance referred to in sub-section (1) is intercepted by the prop
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orised to arrest the person shall inform such person
of the grounds of arrest and produce him before a Magistrate within twenty four hours.
(3) Subject to the provisions of the Code of Criminal Procedure, 1973,-
(a) where a person is arrested under sub-section (1) for any offence specified
under sub-section (4) of section 132, he shall be admitted to bail or in default of bail,
forwarded to the custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner
or the Assistant Commissioner shall, for the purpose of releasing an arrested person
on bail or otherwise, have the same powers and 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
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rtered accountant nominated under
section 66-
(i) such records as prepared or maintained by the registered person and declared
to the proper officer in such manner as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial accounts, duly audited, wherever required;
(iv) cost audit report, if any, under section 148 of the Companies Act, 2013;
(v) the income-tax audit report, if any, under section 44AB of the Income-tax
Act, 1961; and
(vi) any 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.
72. (1) All officers of Police, Railways, Customs, and those officers engaged in the
collection of land revenue, including village officers, officers of State tax and
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vailed or utilised input tax credit, requiring him to show cause as to why
he should not pay the amount specified in the notice along with interest payable thereon
10 under section 50 and a penalty leviable under the provisions of this Act or the rules made
thereunder.
(2) The proper officer shall issue the notice under sub-section (1) at least three months
prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper
15 officer may serve a statement, containing the details of tax not paid or short paid or erroneously
refunded 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
20 tax periods other than those c
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hich falls short of the
amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3)
pays the said tax along with interest payable under section 50 within thirty days of issue of
show cause notice, no penalty shall be payable and all proceedings in respect of the said
notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by
40 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 furnishing of annual return for the financial year to which the tax not
45 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 any
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or to whom the refund has erroneously been made, or who has wrongly availed
or utilised input tax credit, requiring him to show cause as to why he should not pay the
amount specified in the notice along with interest payable thereon under section 50 and a
penalty equivalent to the tax specified in the notice.
(2) The proper officer shall issue the notice under sub-section (1) at least six months
prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper
officer may serve a statement, containing the details of tax not paid or short paid or erroneously
refunded 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 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 rel
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the
notice as provided for in sub-section (1) in respect of such amount which falls short of the
amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) pays the said tax
along with interest payable under section 50 and a penalty equivalent to twenty-five per cent.
of such tax within thirty days of issue of the notice, all proceedings in respect of the said
notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by the
person chargeable with tax, determine the amount of tax, interest and penalty due from such
person and issue an order.
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(10) The proper officer shall issue the order under sub-section (9) within a period of
five years
s
from the due date for furnishing of annual return for the financial year to which the 40
tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five
years from the date of erron
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non-declaration of facts or information which a taxable person is required to
declare in the return, statement, report or any other document furnished under this Act
or the rules made thereunder, or failure to furnish any information on being asked for,
in writing, by the proper officer.
75. (1) Where the service of notice or issuance of order is stayed by an order of a court
or Appellate Tribunal, the period of such stay shall be excluded in computing the period
specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74,
as the case may be.
(2) Where any Appellate 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-misstatement 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, dee
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shall not be in excess
35 of the amount specified in the notice and no demand shall be confirmed on the grounds other
than the grounds specified in the notice.
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(8) Where the Appellate Authority or Appellate Tribunal or court modifies the amount
of tax determined by the proper officer, the amount of interest and penalty shall stand
modified accordingly, taking into account the amount of tax so modified.
(9) The interest on the tax short paid or not paid shall be payable whether or not
specified in the order determining the tax liability.
(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
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payable on such tax remains unpaid, the
same shall be recovered under the provisions of section 79.
(13) Where any penalty is imposed under section 73 or section 74, no penalty for the
same act or omission shall be imposed on the same person under any other provision of this
Act.
76. (1) Notwithstanding anything to the contrary contained in any order or direction
of any Appellate Authority or Appellate Tribunal or court or in any other provisions of this
Act or the rules made thereunder or any other law for the time being in force, every person
who has collected from any other person any amount as representing the tax under this Act,
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
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ting
from the person to whom the notice was issued to show cause.
(6) The proper officer shall issue an order within one year from the date of issue of the 35
notice.
(7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal,
the period of such stay shall be excluded in computing the period of one year.
(8) The proper officer, in his order, shall set out the relevant facts and the basis of his
decision.
(9) The amount paid to the Government under sub-section (1) or sub-section (3) shall
be adjusted against the tax payable, if any, by the person in relation to the supplies referred
to in sub-section (1).
40
(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 45
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 provisio
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ed:
Provided that where the proper officer considers it expedient in the interest of revenue,
he may, for reasons to be recorded in writing, require the said taxable person to make such
15 payment within such period less than a period of three months as may be specified by him.
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79. (1) Where any amount payable by a person to the Government under any of the
provisions of this Act or the rules made thereunder is not paid, the proper officer shall
proceed to recover the amount by one or more of the following modes, namely:ââ¬â⬢
(a) the proper officer may deduct or may require any other specified officer to
deduct the amount so payable from any money owing to such person which may be
under the control of the proper officer or such other specified officer;
(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 cont
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nt is
made, notwithstanding any rule, practice or requirement to the contrary;
(iii) in case the person to whom a notice under sub-clause (i) has been
issued, fails to make the payment in pursuance thereof to the Government, he
shall be deemed to be a defaulter in respect of the amount specified in the notice
and all the consequences of this Act or the rules made thereunder shall follow;
(iv) the officer issuing a notice under sub-clause (i) may, at any time,
amend or revoke such notice or extend the time for making any payment in
pursuance of the notice;
(v) any person making any payment in compliance with a notice issued
under 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
Tax
wrongfully
collected and
paid to
Central
Government
or State
Government.
Initiation of
recovery
proceedings.
Recovery of
tax.
56
Government shall be deemed to constitute a good and sufficient d
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whom the notice has been served to pay to the Government any such money or
part thereof;
(d) the proper officer may, in accordance with the rules to be made in this behalf,
distrain any movable or immovable property belonging to or under the control of such
person, and detain the same until the amount payable is paid; and in case, any part of
the said amount payable or of the cost of the distress or keeping of the property,
remains unpaid for a period of thirty days next after any such distress, may cause the
said property to be sold and with the proceeds of such sale, may satisfy the amount
payable and the costs including cost of sale remaining unpaid and shall render the
surplus amount, if any, to such person;
(e) the proper officer 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 G
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ules made thereunder and which
remains unpaid, the proper officer of State tax or Union territory tax, during the course of
recovery of said tax arrears, may recover the amount from the said person as if it were an
arrear of State tax or Union territory tax and credit the amount so recovered to the account of
the Government.
(4) Where the amount recovered under sub-section (3) is less than the amount due to
the Central Government and State Government, the amount to be credited to the account of
the respective Governments shall be in proportion to the amount due to each such
Government.
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2 of 1974.
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57
80. On an application filed by a taxable person, the Commissioner may, for reasons to
be recorded in writing, extend the time for payment or allow payment of any amount due
under this Act, other than the amount due as per the liability self-assessed in any return, by
such person in monthly instalments not exceeding twenty four, subject to paymen
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such proceedings under
this Act or without notice of such tax or other sum payable by the said person, or with the
previous permission of the proper officer.
82. Notwithstanding anything to the contrary contained in any law for the time being
31 of 2016. 20 in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, any
amount payable by a taxable person or any other person on account of tax, interest or
penalty which he is liable to pay to the Government shall be a first charge on the property of
such taxable person or such person.
83. (1) Where during the pendency of any proceedings under section 62 or section 63
25 or section 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion that
for the purpose of protecting 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 pr
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or other proceedings may, without the service of any fresh
notice of demand, be continued from the stage at which such proceedings stood
immediately before such disposal;
(b) where such Government dues are reduced in such appeal, revision or in other
proceedingsââ¬â⬢
(i) it shall not be necessary for the Commissioner to serve upon the taxable
person a fresh notice of demand;
(ii) the Commissioner shall give intimation of such reduction to him and to
the appropriate authority with whom recovery proceedings is pending;
(iii) any recovery proceedings initiated on the basis of the demand served
upon him prior to the disposal of such appeal, revision or other proceedings may
Payment of
tax and other
amount in
instalments.
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.
58
be continued in relation t
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transferee of a business referred to in sub-section (1) carries on such
business either in his own name or in some other name, he shall be liable to pay tax on the
supply of goods or services or both effected by him with effect from the date of such transfer
and shall, if he is a registered person under this Act, apply within the prescribed time for
amendment of his certificate of registration.
86. Where an agent supplies or receives any taxable goods on behalf of his principal,
such agent and his principal shall, jointly and severally, be liable to pay the tax payable on
such goods under this Act.
87. (1) When two or more companies are amalgamated or merged in pursuance of an
order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to
the date of the order and any two or more of such companies have supplied or received any
goods or services or both to or from each other during the period commencing on the date
from which the order take
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ify the liquidator within three months from the date on which he
receives intimation of the appointment of the liquidator, the amount which in the opinion of
the Commissioner would be sufficient to provide for any tax, interest or penalty which is
then, or is likely thereafter to become, payable by the company.
(3) When any private company is wound up and any tax, interest or penalty determined
under this Act on the company for any period, whether before or in the course of or after its
liquidation, cannot be recovered, then every person who was a director of such company at
any time during the period for which the tax was due shall, jointly and severally, be liable for
the payment of such tax, interest or penalty, unless he proves to the satisfaction of the
Commissioner that such 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.
89. (1) Notwithstanding anything contained in the Compan
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enalty in respect of such supply of goods
or services or both of such private company:
Provided that nothing contained in this sub-section shall apply to any personal penalty
imposed on such director.
90. Notwithstanding any contract to the contrary and any other law for the time being Liability of
in force, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and
each of the partners of the firm shall, jointly and severally, be liable for such payment:
Provided that where any partner retires from the firm, he or the firm, shall intimate the
date of retirement of the said partner to the Commissioner by a notice in that behalf in writing
and such partner shall be liable to pay tax, interest or penalty due up to the date of his
retirement whether determined or not, on that date:
Provided further that if no such intimation is given within one month from the date of
20 retirement, the liability of such partner under the first proviso shall conti
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tax, interest or penalty is payable under this Act is under the control
of the Court of Wards, the Administrator General, the Official Trustee or any receiver or
manager (including any person, whatever be his designation, who in fact manages the
business) appointed by or under any order of a court, the tax, interest or penalty shall be
35 levied upon and be recoverable from such Court of Wards, Administrator General, Official
Trustee, receiver or manager in like manner and to the same extent as it would be determined
and be recoverable from the taxable person as if he were conducting the business himself,
and all the provisions of this Act or the rules made thereunder shall apply accordingly.
93. (1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016,
40 where a person, liable to pay tax, interest or penalty under this Act, dies, thenââ¬â⬢
45
Special
provisions
regarding
(a) if a business carried on by the person is continued after his death by his
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ciation of persons is partitioned amongst the various members or groups of members,
then, each member or group of members shall, jointly and severally, be liable to pay the tax,
interest or penalty due from the taxable person under this Act up to the time of the partition
whether such tax, penalty or interest has been determined before partition but has remained
unpaid or is determined after the partition.
(3) 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, is a firm, and the firm is
dissolved, then, every person who was a partner shall, jointly and severally, be liable to pay
the tax, interest or penalty due from the firm under this Act up to the time of dissolution
whether such tax, interest or penalty has been determined before the dissolution, but has
remained unpaid or is determined after dissolution.
(4) Save as otherwise provided in the Insolvency and Bankruptcy Code
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scontinuance may be determined as if no such
discontinuance had taken place; and
(b) every person who, at the time of such discontinuance, was a partner of such 30
firm, or a member of such association or family, shall, notwithstanding such
discontinuance, jointly and severally, be liable for the payment of tax and interest
determined and penalty imposed and payable by such firm, association or family,
whether such tax and interest has been determined or penalty imposed prior to or after
such discontinuance and subject as aforesaid, the provisions of this Act shall, so far 35
as may be, apply as if every such person or partner or member were himself a taxable
person.
(2) Where a change has occurred in the constitution of a firm or an association of
persons, the partners of the firm or members of association, as it existed before and as it
exists after the reconstitution, shall, without prejudice to the provisions of section 90, jointly
and severally, be liable to pay tax,
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thority or the Appellate
Authority to an applicant on matters or on questions specified in sub-section (2) of
section 97 or sub-section (1) of section 100, in relation to the supply of goods or
services or both being undertaken or proposed to be undertaken by the applicant;
(c) ââ¬Åapplicantâ⬠means any person registered or desirous of obtaining registration
under this Act;
(d) “applicationâ⬠means an application made to the Authority under sub-section
(1) of section 97;
(e) “Authority” means the Authority for Advance Ruling referred to in
section 96 ;
(b) “Appellate Authorityâ⬠means the Appellate Authority for Advance Ruling
referred to in section 99.
Definitions.
advance
ruling.
96. Subject to the provisions of this Chapter, for the purposes of this Act, the Authority Authority for
for advance ruling constituted under the provisions of a State Goods and Services Tax Act or
Union Territory Goods and Services Tax Act shall be deemed to be the Authori
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r both,
within the meaning of that term.
98. (1) On receipt of an application, the Authority shall cause a copy thereof to be
forwarded to the concerned officer and, if necessary, call upon him to furnish the relevant
40 records:
Provided that where any records have been called for by the Authority in any case,
such records shall, as soon as possible, be returned to the said concerned officer.
(2) The Authority may, after examining the application and the records called for and
after hearing the applicant or his authorised representative and the concerned officer or his
45 authorised representative, by order, either admit or reject the application:
Application
for advance
ruling.
Procedure on
receipt of
application.
Appellate
Authority for
Advance
Ruling.
Appeal to
Appellate
Authority.
Orders of
Appellate
Authority.
62
Provided that the Authority shall not admit the application where the question raised
in the application is already pending or decided in any
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s sought, they shall state the point or points on which they differ and make a reference
to the Appellate Authority for hearing and decision on such question.
(6) The Authority shall pronounce its advance ruling in writing within ninety days
from the date of receipt of application.
(7) A copy of the advance ruling pronounced by the Authority duly signed by the
members and certified in such manner as may be prescribed shall be sent to the applicant, the
concerned officer and the jurisdictional officer after such pronouncement.
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99. Subject to the provisions of this Chapter, for the purposes of this Act, the Appellate
Authority for Advance Ruling constituted under the provisions of a State Goods and Services
Tax Act or a Union Territory Goods and Services Tax Act shall be deemed to be the Appellate 25
Authority in respect of that State or Union territory.
100. (1) The concerned officer, the jurisdictional officer or an applicant aggrieved by
any advance ruling p
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l be passed within a period of
ninety days from the date of filing of the appeal under section 100 or a reference under
sub-section (5) of section 98.
(3) Where the members of the Appellate Authority differ on any point or points referred
to in appeal or reference, it shall be deemed that no 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
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5 of 1908.
2 of 1974.
45 of 1860.
63
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,
5 if such error is noticed by the Authority or the Appellate Authority on its own accord, or is
brough
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ce
void in
certain
104. (1) Where the Authority or the Appellate Authority finds that advance
ruling pronounced by it under sub-section (4) of section 98 or under sub-section (1) of ruling to be
20 section 101 has been obtained by the applicant or the appellant by fraud or suppression of
material facts or misrepresentation of facts, it may, by order, declare such ruling to be void
ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall
apply to the applicant or the appellant as if such advance ruling had never been made:
Provided that no order shall be passed under this sub-section unless an opportunity
25 of being heard has been given to the applicant or the appellant.
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35
Explanation.ââ¬â⬢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-sections (2) and (10) of
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Authority shall, subject to the provisions of this
45 Chapter, have power to regulate its own procedure.
circumstances.
Powers of
Authority
and Appellate
Authority.
Procedure of
Authority and
Appellate
Authority.
Appeals to
Appellate
Authority.
64
CHAPTER XVIII
APPEALS AND REVISION
107. (1) Any person aggrieved by any decision or order passed under this Act or the
State Goods and Services Tax Act or the Union Territory Goods 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 State tax or the Commissioner of Union territory tax, call for and examine the record of any
proceedings in which an adjudicating authority has passed any decision or order under this
Act or the State Goods and Services Tax Act or the Union Territ
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n the aforesaid period of three months or six
months, as the case may be, allow it to be presented within a further period of one month.
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(5) Every appeal under this section shall be in such form and shall be verified in such 25
manner as may be prescribed.
(6) No appeal shall be filed under sub-section (1), unless the appellant has paidââ¬â
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising
from the impugned order, as is admitted by him; and
(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.
(7) Where the appellant has paid the amount under sub-section (6), the recovery
proceedings for the balance amount shall be deemed to be stayed.
(8) The Appellate Authority shall give an opportunity to the appellant of being heard.
30
(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of 35
an appea
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d or input tax credit shall
not be passed unless the appellant has been given a reasonable opportunity of showing
cause against the proposed order:
Provided further that where the Appellate Authority is of the opinion that any tax has
not been paid or short-paid or erroneously refunded, or where input tax credit has been
wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit
shall be passed unless the appellant is given notice to show cause against the proposed
order and the order is passed within the time limit specified under section 73 or
10 section 74.
(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
15 appeal within a period of one year from the date on which it is filed:
20
Provided that where the i
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te tax, or the Commissioner of Union territory tax, call
for and examine the record of any proceedings, and if he considers that any decision or order
30 passed under this Act or under the State Goods and Services Tax Act or the Union Territory
Goods and Services Tax Act by any officer subordinate to him is erroneous in so far as it is
prejudicial to the interest of revenue and is illegal or improper or has not taken into account
certain material facts, whether available at the time of issuance of the said order or not or in
consequence of an observation by the Comptroller and Auditor General of India, he may, if
35 necessary, stay the operation of 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.
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(2) The Revisional Au
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) of that sub-section,
whichever is later.
(3) Every order passed in revision under sub-section (1) shall, subject to the provisions
of section 113 or section 117 or section 118, be final and binding on the parties.
(4) If the said decision or order involves an issue on which the Appellate Tribunal or
the High Court has given its decision in some other proceedings and an appeal to the High
Court or the Supreme Court against such decision of the Appellate Tribunal or the High
Court is pending, the period spent between the date of the decision of the Appellate Tribunal
and the date of the decision of the High Court or the date of the decision of the High Court
and the date of the decision of the Supreme Court shall 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 t
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nal Benchesââ¬), State
Bench and Benches thereof (hereafter in this Chapter referred to as “Area Benches”).
(3) The National Bench of the Appellate Tribunal shall be situated at New Delhi which
shall be presided over by the President and shall consist of one Technical Member (Centre)
and one Technical Member (State).
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(4) The Government shall, on the recommendations of the Council, by notification,
constitute such number of Regional Benches as may be required and such Regional Benches 35
shall consist of a Judicial Member, one Technical Member (Centre) and one Technical Member
(State).
(5) The National Bench or Regional Benches of the Appellate Tribunal shall have
jurisdiction to hear appeals against the orders passed by the Appellate Authority or the
Revisional Authority in the cases where one of the issues involved relates to the place of
supply.
(6) The Government shall, by notification, specify for each State or Union territory, a
Bench of the Appellate Tri
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general or special order, distribute
the business or transfer cases among Regional Benches or, as the case may be, Area Benches
10 in a State.
15
(9) Each State Bench and Area Benches of the Appellate Tribunal shall consist of a
Judicial Member, one Technical Member (Centre) and one Technical Member (State) and the
State Government may designate the senior most Judicial Member in a State as the State
President.
(10) In the absence of a Member in any Bench due to vacancy or otherwise, any appeal
may, with the approval of the President or, as the case may be, the State President, be heard
by a Bench of two Members:
Provided that any 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 in any order
20 appealed against, does not exceed five lakh rupees and which does not involve any question
of law may, with the approval of the President and subject to such conditions as may b
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e Bench to another
Bench, whether National or Regional; or
(b) any Member Technical (Centre) from one Bench to another Bench, whether
National, Regional, State or Area.
(13) The State Government, in consultation with the State President may, for the
administrative convenience, transfer a Judicial Member or a Member Technical (State) from
40 one Bench to another Bench within the State.
45
(14) No act or proceedings of the Appellate Tribunal shall be questioned or shall be
invalid merely on the ground of the existence of any vacancy or defect in the constitution of
the Appellate Tribunal.
110. (1) A person shall not be qualified for appointment asââ¬â⬢
(a) the President, unless he has been a Judge of the Supreme Court or is or has
been the Chief Justice of a High Court, or is or has been a Judge of a High Court for a
period not less than five years;
(b) a Judicial Member, unless he
(i) has been a Judge of the High Court; or
(ii) is or has been a District Judge qualifi
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Members of the National Bench and the Regional
Benches shall be appointed by the Government after consultation with the Chief Justice of
India or his nominee:
Provided that in the event of the occurrence of any vacancy in the office of the
President by reason of his death, resignation or otherwise, the senior most Member of the
National Bench shall act as the President until the date on which a new President, appointed
in accordance with the provisions of this Act to fill such vacancy, enters upon his office:
Provided further that where the President is unable to discharge his functions owing
to absence, illness or any other cause, the senior most Member of the National Bench shall
discharge the functions of the President until the date on which the President resumes his
duties.
(3) The Technical Member (Centre) and Technical Member (State) of the National
Bench and Regional Benches shall be appointed by the Government on the recommendations
of a Selection Committee consi
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President or Member.
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(8) The salary, allowances and other terms and conditions of service of the President,
State President and the Members of the Appellate Tribunal shall be such as may be prescribed: 40
Provided that neither salary and allowances nor other terms and conditions of service
of the President, State President or Members of the Appellate Tribunal shall be varied to their
disadvantage after their appointment.
(9) The President of the Appellate Tribunal shall hold office for a term of three years
from the date on which he enters upon his office, or until he attains the age of seventy years, 45
whichever is earlier and shall be eligible for reappointment.
5
69
(10) The Judicial Member of the Appellate Tribunal and the State President shall hold
office for a term of three years from the date on which he enters upon his office, or until he
attains the age of sixty-five years, whichever is earlier and shall be eligible for
reappointment.
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al Members and Technical Members of the National Bench,
Regional Benches or Technical Members (Centre) of the State Bench or Area Benches, and
20 the State Government may, after consultation with the Chief Justice of High Court, in case of
the State President, Judicial Members, Technical Members (State) of the State Bench or Area
Benches, may remove from the office such President or Member, who
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45
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of such
Government involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President,
State President or Member; or
(d) has acquired such financial or other interest as is likely to affect
prejudicially his functions as such President, State President or Member; or
(e) has so abused his position as to render his continuance in office
prejudicial to the public interest:
Provided that the President, State President or the Mem
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ed misbehaviour or incapacity after an inquiry
made by a Judge of the concerned High Court nominated by the Chief Justice of the
concerned High Court on a reference made to him by the State Government and of
which the said Member had been given an opportunity of being heard.
(15) The Central Government, with the concurrence of the Chief Justice of India, may
50 suspend from office, the President or a Judicial or Technical Members of the National Bench
Procedure
before
Appellate
Tribunal.
Appeals to
Appellate
Tribunal.
70
or the Regional Benches or the Technical Member (Centre) of the State Bench or Area
Benches in respect of whom a reference has been made to the Judge of the Supreme Court
under sub-section (14).
(16) The State Government, with the concurrence of the Chief Justice of the High
Court, may suspend from office, a Judicial Member or Technical Member (State) of the State 5
Bench or Area Benches in respect of whom a reference has been made to the Judge of th
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suit in respect of the following matters, namely:ââ¬â⬢
(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
(h) any other matter which may be prescribed.
(3) Any order made by the Appellate Tribunal may be enforced by it in the same
manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful
for the Appellate Tribunal to send for execution of its orders to the court within t
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rder 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
5 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 State tax or Commissioner of Union territory tax, call for and examine the record of any
10 order passed by the Appellate Authority or the Revisional Authority under this Act or the
State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act for the
purpose of satisfying himself as to the legality or propriety of the said order and may, by
order, direct any officer subordinate to him to apply to the Appellate Tribunal within six
months from the dat
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r 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
30 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.
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(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-section (1), unless the appellant has paidââ¬â
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising
from the impugned order, as is admitted by him, and
(b) a sum equal to twenty per cent. of the remaining amount of tax
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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 State tax
or the Commissioner of the Union territory tax or the other party to the appeal within a period
of three months from the date of the order:
Provided that no amendment which has the effect of enhancing an assessment or
reducing a refund or input tax c
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on
refund of
amount paid
for admission
of appeal.
Appearance
by authorised
representative.
Provided that the 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
National Bench and Regional 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 President.
115. Where an amount paid by the appellant under sub-section (6) of section 107 or
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 required to appear before an officer appointed
under this Act, or t
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ory 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:
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 State Goods and Services Tax Act, the Integrated Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, or under the existing law or under
any of the Acts passed by a State Legislature dealing with the imposition of taxes on
sale of goods or supply of goods or services or both; or
(c) who is found guil
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y 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.
(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
40 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 court to hear, for reasons to be recorded, the appeal on any other substantial
question of law not formulated by it, if it is satisfied that the case involves such question.
(4) The High Court shall decide the question of law so formulated and deliver such
45 judgment thereon containing t
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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 Courtââ¬â⬢
(a) from any order passed by the National Bench or Regional Benches of the
Appellate Tribunal; or
(b) from any judgment or order passed by the High Court in an appeal made
under section 117 in any case which, on its own motion or on an application made by
or on behalf of the party aggrieved, immediately after passing of the judgment or order,
the High Court certifie
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le in accordance with the order so passed.
120. (1) The Board may, on the recommendations of the Council, from time to time,
issue orders or instructions or directions fixing such monetary limits, as it may deem fit, for
the purposes of regulating the filing of appeal or application by the officer of the central 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 central 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 central 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 officer
of the central tax pursuant to the orders or instructions or directions issued under
sub-section (1), no person, being a party in appeal or
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and other documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed under section 80.
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 a period of three months from the date on which
such payment becomes due;
(v) fails to deduct the tax in accordance with the provisions of sub-section (1) of
section 51, or deducts an amount which is less than the amount
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t of tax due under this Act;
Non-
appealable
decisions and
orders.
Penalty for
certain
offences.
76
(xi) is liable to be registered under this Act but fails to obtain registration;
(xii) furnishes any false information with regard to registration particulars, either
at the time of applying for registration, or subsequently;
(xiii) obstructs or prevents any officer in discharge of his duties under this Act;
(xiv) transports any taxable goods without the cover of documents as may be
specified in this behalf;
(xv) suppresses his turnover leading to evasion of tax under this Act;
(xvi) 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;
(xvii) fails to furnish information or documents called for by an officer in
accordance with the provisions of this Act or the rules made thereunder or furnishes
false information or documents during any proceedings under this Act;
(xviii) sup
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the input tax credit has
been wrongly availed or utilised,ââ¬â
(a) for
any reason, other than the reason of fraud or any wilful 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;
(b) for reason of fraud or any wilful misstatement or suppression of facts to
evade tax, shall be liable to a penalty equal to ten thousand rupees or the tax due from
whichever is higher.
such person,
(3) Any person whoââ¬â
30
(a) aids or abets any of the offences specified in clauses (i) to (xxi) of 35
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
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imposed under this section shall not exceed five thousand
10
rupees.
124. If any person required to furnish any information or return under section 151,ââ¬â
(a) without reasonable cause fails to furnish such information or return as may
be required under that section, or
(b) wilfully furnishes or causes to furnish any information or return which he
knows to be false,
15 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
20 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.
126. (1) No officer under this Act shall impose any penalty for minor breac
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on 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
40 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.
45
(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
Penalty for
failure to
furnish
information
return.
Fine for
failure to
furnish
statistics.
General
penalty.
General
disciplines
related to
penalty.
Power to
impose
penalty in
certain cases.
Power to
waiv
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nd conveyance
shall be liable to detention or seizure and after detention or seizure, shall be released,ââ¬â⬢
(a) on payment of the applicable tax and penalty equal to one hundred per cent.
of the tax payable on such goods and, in case of exempted goods, 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:
Pro
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within seven days of such
detention or seizure, further proceedings shall be initiated in accordance with the provisions
of section 130:
Provided that where the detained or seized goods are perishable or hazardous in
nature or are likely to depreciate in value with passage of time, the said period of seven days 40
be reduced by the ] proper officer.
may
130. (1) Notwithstanding anything contained in this Act, if any personââ¬â⬢
(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
45
79
2 of 1974.
5
10
15
(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 c
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ge of the goods or
passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of
the confiscation of the conveyance a fine equal to the tax payable on the goods being
20 transported thereon.
25
(3) Where any fine in lieu of confiscation 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.
(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
30 things confiscated and every officer of Police, on the requisition of such proper
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r the rules made thereunder, with the intention
to evade tax;
(b) 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 leading to wrongful
availment or utilisation of input tax credit or refund of tax;
Confiscation
or penalty
not to
interfere with
other
punishments.
Punishment
for certain
offences.
80
(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);
(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;
Act;
(g) obst
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commission of any of the offences mentioned
in clauses (a) to (k) of this section,
shall be punishableââ¬â⬢
(i) 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 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;
(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
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le and bailable.
(5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-
5 section (1) and punishable under clause (i) of that sub-section shall be cognizable and non-
bailable.
(6) A person shall not be prosecuted 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
10 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 State Goods and Services Tax Act, the
Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act
and cess levied under the Goods and Services Tax (Compensation to States) Act.
133. Where any person engaged in connection with the collection of statistics under
15 section 151 or compilation or computerisation thereof or if any officer of central tax having
access to information specified u
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ce punishable under this Act or the
30 rules made thereunder except with the previous sanction of the Commissioner, and no court
inferior to that of a Magistrate of the First Class, shall try any such offence.
135. In any prosecution for an offence under this Act which requires a culpable 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
35 with respect to the act charged as an offence in that prosecution.
40
Explanation. For the purposes of this section,-
(i) the expression ââ¬Åculpable mental stateâ⬠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 app
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he case, the statement should be admitted in evidence in the interest of justice.
137. (1) Where an offence committed by a person under this Act is a company, every
person who, at the time the offence was committed was in charge of, and was responsible to,
the company for the conduct of business of the company, as well as the company, shall be
deemed to be 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
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ution, be compounded by the Commissioner on payment, by the person accused of
the offence, to the Central Government or the State Government, as the case be, of such
compounding amount in such manner as may be prescribed:
Provided that nothing contained in this section shall apply toââ¬â⬢
30
(a) a person who has been 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 35
the said sub-section;
(b) 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 Union Territory Goods and Services Tax Act or the
Integrated Goods and Services Tax Act in respect of supplies of value exceeding one 40
crore rupees;
(c) a person who has been accused of committing an offence
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and fifty per cent. of the tax, whichever is
10 higher.
15
(3) On payment of such compounding amount as may be determined by the
Commissioner, no further proceedings shall be initiated under this Act against the accused
person in respect of the same offence and any criminal proceedings, if already initiated in
respect of the said offence, shall stand abated.
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
20 may be prescribed, which 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.
25
(2) The final certificate of registration shall be granted in such form and manner and
subject to such conditions as may be p
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nths immediately preceding the appointed date; or
(iii) where the said amount of credit relates to goods manufactured and cleared
under such exemption notifications as are notified by the Government.
(2) A registered person, other than a person opting to pay tax under section 10, shall be
entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in
respect of capital goods, not carried forward in a return, furnished under the existing law by
him, for the period ending with the day immediately preceding the appointed day in such
manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit unless the said
credit was admissible as CENVAT credit under the existing law and is also admissible as input
tax credit under this Act.
Migration of
existing
taxpayers.
Transitional
arrangements
for input tax
credit.
84
Explanation. For the purposes of this sub-section, the expression ââ¬Åunavailed
CENVAT cre
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y:ââ¬â⬢
(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;
(iii) the said registered person is in possession of invoice or other prescribed
documents evidencing payment of duty under the existing law in respect of such
inputs;
(iv) such invoices or other prescribed documents were issued not earlier than
twelve months immediately preceding the appointed day; and
5
10
15
20
(v) the supplier of services is not eligible for any abatement under this Act:
Provided that where a registered person, other than a manufacturer or a supplier of
services, is not in possession of an invoice or any other documents evidencing payment of 25
duty in respect of inputs, then, such registered person shall, subject to such conditions,
limitations and safeguards as may be prescribed, including that the said taxable person shall
pass on the bene
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ledger, credit of
eligible duties and taxes in respect of inputs or input services received on or after the
appointed day but the duty or 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 duty or tax paying document
of the same was recorded in the books of accounts of such person within a period of thirty
days from the appointed day:
Provided that the period of thirty days may, on sufficient cause being shown, be
extended by the Commissioner for a further period not exceeding thirty days:
Provided further that said registered person shall furnish a statement, in such manner
as may be prescribed, in respect of credit that has been taken under this sub-section.
30
35
40
45
1 of 1944.
32 of 1994.
58 of 1957.
51 of 1975.
51 of 1975.
5
10
15
20
25
85
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed
amount in lieu of the tax payable under the exist
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day by an Input Service Distributor
shall be eligible for distribution as credit under this Act even if the invoices relating to such
services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law
has obtained a registration under this Act, such person shall be allowed to take, in his
electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return,
furnished under the existing law by him, in respect of the period ending with the day
immediately preceding the appointed day in such manner as may be prescribed:
Provided that if the registered person furnishes his return for the period ending with
the day immediately preceding the appointed day within three months of the appointed day,
such credit shall be allowed subject to the condition that the said return is either an original
return or a revised return where the credit has been reduced from that claimed earlier:
Provided
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additional duty of excise leviable under section 3 of the Additional Duties
of Excise (Goods of Special Importance) Act, 1957;
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs
Tariff Act, 1975;
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs
Tariff Act, 1975;
Transitional
provisions
86
(iv) the additional duty of excise leviable under section 3 of the Additional
Duties of Excise (Textile and Textile Articles) Act, 1978;
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff
Act, 1985;
(vi) the duty of excise specified in the Second Schedule to the Central Excise
Tariff Act, 1985; and
(vii) the National Calamity Contingent Duty leviable under section 136 of the
Finance Act, 2001;
in respect of inputs held in stock and inputs contained in semi-finished or finished
goods held in stock on the appointed day.
Explanation 2. For the purposes of sub-section (5), the expressio
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1978.
5 of 1986.
5
5 of 1986.
10
14 of 2001.
58 of 1957.
15
51 of 1975.
51 of 1975.
20 40 of 1978.
5 of 1986.
5 of 1986.
25
14 of 2001.
141. (1) Where any inputs received at a place of business had been removed as such
or removed after being partially processed to a job worker for further processing, testing, 30
relating to job 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:
work.
32 of 1994.
Provided that the period of six months may, on sufficient cause being shown, be
extended by the Commissioner for a further period not exceeding two months:
35
Provided further that if such inputs are not returned within the period specified in this
sub-section, the
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red in accordance with the
5 provisions of clause (a) of sub-section (8) of section 142:
10
Provided also that the manufacturer 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 the period specified in this sub-section.
(3) Where any excisable goods manufactured at a place of business had been removed
without payment of duty for carrying out tests or any other process not amounting to
manufacture, to any other premises, whether registered or not, in accordance with the
provisions of existing law prior to the appointed day and such goods, are returned to the said
place on or after the appointed day, no tax shall be payable if the said goods, after undergoing
15 tests or any other process, are returned to the said place within six months from the appointed
day:
Provided that the period of si
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any, had been paid under the existing law
30 at the time of removal 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 duty 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
35 proper officer:
Provided that if the said goods are returned by a registered person, the return of such
goods shall be deemed to be a supply.
(2) (a) where, in pursuance of a contract entered into prior to the appointed day, the
price of any goods or services or both is revised upwards on or after the appointed day, the
40 registered person who had removed or provided such goods or services or both shall issue
to the recipient a supplementary invoice or debit note,
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edit 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 CENVAT credit, duty, 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 paid in cash, notwithstanding anything to
the contrary contained under the provisions of existing law other than the provisions of sub-
section (2) of section 11B of the Central Excise Act, 1944:
5
Provided that where any claim for refund of CENVAT credit is fully or partially rejected, 10
the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit
where the balance of the said amount as on the appointed day has been carried forward
under this Act.
(4) Every claim for refund filed after the appointed day for ref
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roceeding of appeal, review or reference relating to a claim for CENVAT
credit initiated whether before, on or after the appointed day under the existing law shall be
disposed of in accordance with the provisions of existing law, and any amount of credit
found to be admissible to the claimant shall be refunded to him in cash, notwithstanding
anything to the contrary contained under the provisions of existing law other than the
provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount
rejected, if any, shall not be admissible as input tax credit under this Act:
Provided that no refund shall be allowed of any amount of CENVAT credit where the
balance of the said amount as on the appointed day has been carried forward under
this Act;
20
25
30
35
(b) every proceeding of appeal, review or reference relating to recovery of CENVAT
credit initiated whether before, on or after the appointed day under the existing law shall be 40
disposed of in a
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ceeding of appeal, review or reference relating to any output duty or tax
liability 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 any amount found to
be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to
the contrary contained under the provisions of existing law other than the provisions of sub-
10 section (2) of section 11B of the Central Excise Act, 1944 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
15 under the existing law, be recovered as an arrear of tax under this Act and the amount so
recovered shall not b
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le as input tax credit under this Act;
(b) where any return, furnished under the existing law, is revised after the appointed
day but within the time limit specified for such revision under the existing law and if, pursuant
30 to such revision, any amount is found to be refundable or CENVAT credit is found to be
admissible to any taxable person, the same shall be refunded to him in cash under the existing
law, notwithstanding anything to the contrary contained in the said law other than the
provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount
rejected, if any, shall not be admissible as input tax credit under this Act.
35
(10) Save as otherwise 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 pa
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ble thereon if such goods are returned within six
months from the appointed day:
Provided that the said 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 the tax shall be payable by the person returning the goods if such
goods are liable to tax under this Act, and are returned after a period specified in this sub-
section:
Provided also that tax shall be payable by the person who has sent the goods on
approval basis if such goods are liable to tax under this Act, and are not returned within a
period specified in this sub-section.
(13) Where a supplier has made any sale of goods in respect of which tax was required
to be deducted at source under any law of a State or Union territory relating to Value Added
Tax 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 deductor under the s
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spectively, of their being sent out, to any of his place of business, without payment 30
of tax;
(b) supply such inputs, after completion of job work or otherwise, or capital
goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three
years, respectively, of their being sent out from the place of business of a job worker
on payment of tax within India, or with or without payment of tax for export, as the case 35
may be:
Provided that the principal shall not supply the goods from the place of business
of a job worker in accordance with the provisions of this clause unless the said principal
declares the place of business of the job-worker as his additional place of business
except in a case-
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be
notified by the Commissioner.
(2) The responsibility for keeping proper accounts for the inputs or capital goods shall
li
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such capital goods had been
supplied by the principal to the job-worker on the day when the said capital goods were
10 sent out.
15
20
(5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and
scrap generated during the job work may be supplied by the job worker directly from his
place of business on payment of tax, if such job worker is registered, or by the principal, if the
job worker is not registered.
from
Explanation. For the purposes of job work, input includes intermediate goods arising
any treatment or process carried out on the inputs by the principal or the job worker.
144. Where any documentââ¬â⬢
(i) is produced by any person under this Act or any other law for the time being
in force; or
(ii) has been seized from the custody or control of any person under this Act or
any other law for the time being in force; or
(iii) has been received from any place outside India in the course of any
proceedings under this Act or any other law
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he time being in Admissibility
force,ââ¬â⬢
(a) a micro film of a document or the reproduction of the image or images embodied
in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) a statement contained in a document and included in a printed material
produced by a computer, subject to such conditions as may be prescribed; or
(d) any
information stored electronically in any device or media, including any
hard copies made of such information,
45 shall be deemed to be a document for the purposes of this Act and the rules
made thereunder and shall be admissible in any proceedings thereunder, without further
of micro
films,
facsimile
copies of
documents and
computer
printouts as
documents and
as evidence.
Common
Portal.
Deemed
Exports.
Special
procedure for
certain
processes.
Goods and
services tax
compliance
rating.
Obligation to
furnish
information
return.
92
proof or production of the original, as evidence of
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n and settlement of integrated tax, electronic way bill and for carrying 15
out such other functions and for such purposes as may be prescribed.
147. The Government may, on the recommendations of the Council, notify certain
supplies of goods as deemed exports, where goods supplied do not leave India, and payment
for such supplies is received either in Indian rupees or in convertible foreign exchange, if
such goods are manufactured in India.
148. The Government may, on the recommendations of the Council, and subject to
such conditions and safeguards as may be prescribed, notify certain classes of registered
persons, and the special procedures to be followed by such persons including those with
regard to registration, furnishing of return, payment of tax and administration of
such persons.
149. (1) Every registered person may be assigned a goods and services tax compliance
rating score by the Government based on his record of compliance with the provisions of
this Act.
(2)
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ribution or transmission licensee
under the Electricity Act, 2003, or any other entity entrusted with such functions by 45 36 of 2003.
the Central Government or the State Government; or
16 of 1908.
18 of 2013.
59 of 1988. 5
30 of 2013.
42 of 1956. 10
22 of 1996.
2 of 1934.
18 of 2013.
15
20
93
(g) the Registrar or Sub-Registrar appointed under section 6 of the Registration
Act, 1908; or
(h) a Registrar within the meaning of the Companies Act, 2013; or
(i) the registering authority empowered to register motor vehicles under the
Motor Vehicles Act, 1988; or
(j) the Collector referred to in clause (c) of section 3 of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013; or
(k) the recognised stock exchange referred to in clause (f) of section 2 of the
Securities Contracts (Regulation) Act, 1956; or
(1) a depository referred to in clause (e) of sub-section (1) of section 2 of the
Depositories Act, 1996; or
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ority or agency as may be prescribed.
(2) Where the Commissioner, or an officer authorised by him in this behalf, considers
that the information furnished in the information return is defective, he may intimate the
30 defect to the person who has furnished such information return and give him an opportunity
of rectifying the defect within a period of thirty days from the date of such intimation or
within such further period which, on an application made in this behalf, the said authority
may allow and if the defect is not rectified within the said period of thirty days or, the further
period so allowed, then, notwithstanding anything contained in any other provisions of this
35 Act, such information return shall be treated as not furnished and the provisions of this Act
shall apply.
(3) Where a person who is required to furnish information return has not furnished the
same within the time specified in sub-section (1) or sub-section (2), the said authority may
serve upon him
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vant.
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94
152. (1) No information of any individual return or part thereof with respect to any
matter given for the purposes of section 150 or 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 identified as referring to a particular person
and no such information shall be used for the purpose of any proceedings under this Act.
(2) Except for the purposes of prosecution under this Act or any other Act for the time
being in force, no person who is not engaged in the collection of statistics under this Act or
compilation or computerisation thereof for the purposes of this Act, shall be permitted to see
or have access to any information or any individual return referred to in section 151.
(3) Nothing in this section shall apply to the publication of any information relating to
a class of taxable persons or class of transactions, if in the opin
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other employees of the Appellate Tribunal or any other
person authorised by the said Appellate Tribunal for anything which is in good faith done or
intended to be done under this Act or the rules made thereunder.
(2) No suit, prosecution or other legal proceedings shall lie against any officer appointed
or authorised under this Act for anything which is done or intended to be done in good faith
under this Act or the rules made thereunder.
158. (1) All particulars contained in any statement made, return furnished or accounts
or documents produced in accordance with this Act, or in any record of evidence given in the
course of any proceedings under this Act (other than proceedings before a criminal court), or
in any record of any proceedings under this Act shall, save as provided in sub-section (3),
not be disclosed.
(2) Notwithstanding anything contained in the Indian Evidence Act, 1872, no court
shall, save as otherwise provided in sub-section (3), require any officer appo
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ivil court in any suit or proceedings, to which the
Government or any authority under this Act is a party, which relates to any matter
arising out of any proceedings under this Act or under any other law for the time being
in force authorising any such authority to exercise any powers thereunder; or
(e) any particulars to any officer appointed for the purpose of audit of tax receipts
or refunds of the tax imposed by this Act; or
(f) any particulars where such particulars are relevant for the purposes of any
inquiry into the conduct of any officer appointed or authorised under this Act, to any
person or persons appointed as an inquiry officer under any law for the time being in
force; or
(g) any such particulars to an officer of the Central Government or of any State
Government, as may be necessary for the purpose of enabling that Government to levy
or realise any tax or duty; or
(h) any particulars when such disclosure is occasioned by the lawful exercise by
a public serv
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law for the time being in force; or
(1) any information relating to any class of taxable persons or class of transactions
for publication, if, in the opinion of the Commissioner, it is desirable in the public
interest, to publish such information.
159. (1) If the Commissioner, or any other officer authorised by him in this behalf, is of
the opinion that it is necessary or expedient in the public interest to publish the name of any
person and any other particulars relating to any proceedings or prosecution under this Act
35 in respect of such person, it may cause to be published such name and particulars in such
manner as it thinks fit.
(2) No publication under this section shall be made in relation to any penalty imposed
under this Act until the time for presenting an appeal to the Appellate Authority under
section 107 has expired without an appeal having been presented or the appeal, if presented,
40 has been disposed of.
Explanation.ââ¬âIn the case of firm, company
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ake, 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.
(2) The service of any notice, order or communication shall not be called in question, 5
if the notice, order or communication, as the case may be, has already been acted upon by the
person to whom it is issued or where such service has not been called in question at or in the
earlier proceedings commenced, continued or finalised pursuant to such notice, order or
communication.
161. Without prejudice to the provisions of section 160, and notwithstanding anything 10
contained in any other provisions of this Act, any authority, who has passed or issued any
decision or order or notice or certificate or any other document, may rectify any error which
is apparent on the face of record in s
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ples
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 anything done or purported to be
done under this Act.
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25
163. Wherever a copy of any order or document is to be provided to any person on an
application made by him for that purpose, there shall be paid such fee as may be prescribed. 30
164. (1) The Government may, on the recommendations of the Council, by notification,
Government to make rules for carrying out the provisions of this Act.
Power
make rules.
of
Power to make
regulations.
Laying of
rules,
regulations
and
notifications.
(2) Without prejudice to the generality of the provisions of sub-section (1), the
Government may make rules for all or any of the matters which by this Act are required to be,
or may be, prescribed or in respect of which provisions are to be or
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lowing the session or the
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40
45
5
97
successive sessions aforesaid, both Houses agree in making any modification in the rule or
regulation or in the notification, as the case may be, or both Houses agree that the rule or
regulation or the notification should not be made, the rule or regulation or notification, as the
case may be, shall thereafter have effect only in such modified form or be of no effect, as the
case may be; so, however, that any such modification or annulment shall be without prejudice
to the validity of anything previously done under that rule or regulation or notification, as
the case may be.
167. The Commissioner may, by notification, direct that subject to such conditions, if
any, as may be specified in the notification, any power exercisable by any authority or officer
10 under this Act may be exercisable also by another authority or officer as may be specified in
such notification.
168. (1) The Board may, if it considers it necessary or expedi
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. (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:ââ¬â⬢
(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
known place of business or residence; or
(c) by sending a communication to his e-mail address provided at the time of
registration or as amended from time to time; or
(d) by making it available on the common portal; or
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moval of
difficulties.
Amendment
of Act 32 of
1994.
Repeal and
saving.
98
(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 5
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 commensurate reduction in 10
prices.
(2) The Central Govern
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of a period of three years
from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be, after it is made,
before each House of Parliament.
173. Save as otherwise provided in this Act, Chapter V of the Finance Act, 1994 shall
be omitted.
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30
1 of 1944.
16 of 1955.
174. (1) Save as otherwise provided in this Act, on and from the date of commencement
of this Act, the Central Excise Act, 1944 (except as respects goods included in entry 84 of
the Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet
Preparations (Excise Duties) Act, 1955, the Additional Duties of Excise (Goods of Special
Importance) Act, 1957, the Additional Duties of Excise (Textiles and Textile Articles) Act,
1978, and the Central Excise Tariff Act, 1985 (hereafter referred to as the repealed Acts) are 35 40 of 1978.
hereby repealed.
(2) The repeal of the said Acts and the amendment of the Finance Act, 1994 (hereafter
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ct of any
offence or violation committed against the provisions of the amended Act or repealed
Acts; or
(e) affect any investigation, inquiry, verification (including scrutiny and audit),
assessment proceedings, adjudication and any other legal proceedings or recovery of
arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest,
right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any
such investigation, inquiry, verification (including scrutiny and audit), 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 amended or repealed;
(f) affect any proceedings including that relating to an appeal, review or reference,
instituted before on, or after the appointed day under the said amended Act or r
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sââ¬â⬢
(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.
4. 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.
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SCHEDULE II
[Section 7]
ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
1. Transfer
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the
transfer of title thereof, is a supply of services;
(c) 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, is a
supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of services;
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ices;
(c) 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-
(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.
5. Supply of services
The following shall be treated as supply of service, namely:ââ¬â
(a) renting of immovable property;
(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.
101
102
Explanation. For the purposes of this clauseââ¬â
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gation to refrain from an act, or to tolerate an act or a
situation, or to do an act; and
(f) 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.
6. Composite supply
The following composite supplies shall be treated as a supply of services, namely:ââ¬â
(a) works contract as defined in clause (119) of section 2; and
(b) 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.
7. Supply of Goods
The following shall be treated as supply of goods, namely:ââ¬â⬢
Supply of goods by any unincorporated association or body of persons to a member
thereof for cash, deferred payment or other valuable consideration.
20 of 1972.
SCHEDULE
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d, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling.
Explanation. For the purposes of paragraph 2, the term “court” includes District
Court, High Court and Supreme Court.
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103
STATEMENT OF OBJECTS AND REASONS
Presently, the Central Government levies tax on, manufacture of certain goods in
the form of Central Excise duty, provision of certain services in the form of service tax,
inter-State sale of goods in the form of Central Sales tax. Similarly, the State Governments
levy tax on and on retail sales in the form of value added tax, entry of goods in the State
in the form of entry tax, luxury tax and purchase tax, etc. Accordingly, there is multiplicity
of taxes which are being levied on the same supply chain.
2. The present tax system on goods and services is facing certain difficulties as
underââ¬â⬢
(i) there is cascading of taxes as taxes levied by the Central Government are
not
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ently being
levied by the Central Government or the State Governments on the supply of goods or
services is going to be converged in goods and services tax which is proposed to be a
dual levy where the Central Government will levy and collect tax in the form of central
goods and services tax and the State Government will levy and collect tax in the form of
state goods and services tax on intra-State supply of goods or services or both.
4. In view of the above, it has become necessary to have a Central legislation,
namely the Central Goods and Services Tax Bill, 2017. The proposed legislation will
confer power upon the Central Government for levying goods and services tax on the
supply of goods or services or both which takes place within a State. The proposed
legislation will simplify and harmonise the indirect tax regime in the country. It is
expected to reduce cost of production and inflation in the economy, thereby making the
Indian trade and industry more competitive, d
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siness;
(c) to impose obligation on electronic commerce operators to collect tax at
source, at such rate not exceeding one per cent. of net value of taxable supplies,
out of payments to suppliers supplying goods or services through their portals;
(d) to provide for self-assessment of the taxes payable by the registered
person;
(e) to provide for conduct of audit of registered persons in order to verify
compliance with the provisions of the Act;
(f) to provide for recovery of arrears of tax using various modes including
detaining and sale of goods, movable and immovable property of defaulting taxable
person;
(g) to provide for powers of inspection, search, seizure and arrest to the
officers;
(h) to establish the Goods and Services Tax Appellate Tribunal by the Central
Government for hearing appeals against the orders passed by the Appellate
Authority or the Revisional Authority;
(i) to make provision for penalties for contravention of the provisions of the
proposed Legi
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d under the proposed Act.
Clause 4 provides for appointment of officers in addition to the officers appointed
under clause 3 of the proposed legislation.
Act.
Clause 5 provides for powers to officers to discharge functions under the proposed
Clause 6 provides for authorisation of State tax and Union territory tax officers,
subject to such conditions as shall be notified by the Central Government on
recommendations of the Council, to be proper officers for the purposes of the proposed
Act.
Clause 7 provides the scope of supply. This clause provides for activities to be
treated as supply. This clause further provides that certain activities, specified in
Schedule I of the proposed Act, even made or agreed to be made without a consideration
shall be treated as supply. This clause also provides activities which are neither supply
of goods nor supply of services.
Clause 8 provides for the tax liability on a composite or a mixed supply.
Clause 9 provides for levy and collectio
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notify categories of services, the tax on
intra-State supplies of which shall be paid by the electronic commerce operator if
such services are supplied through it, on the recommendations of the Council.
Clause 10 provides for composition levy. It is an alternative method of levy of tax
designed for small taxpayers whose turnover is upto prescribed limit. This clause also
provides that certain categories of supplies or suppliers cannot opt for composition
levy. A person opting to pay under this clause can neither take credit of taxes paid on
inputs nor it can collect any tax from the recipient.
Clause 11 confers powers on the Central Government to exempt either absolutely
or conditionally goods or services or both of any specified description from the whole
106
107
or part of the central tax, on the recommendations of the Council. It also confers powers
on the Central Government to exempt from payment of tax any goods or services or
both, by special order, on the recommend
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o be included in the value for the purpose of calculation of tax. This clause also
provides power to make rules of valuation in certain situations.
Clause 16 provides for eligibility, conditions and time period for taking input tax
credit. This clause provides that a registered person is entitled to take credit of input
tax charged on any supply of goods or services or both to him which are used or
intended to be used in the course or furtherance of his business.
Clause 17 provides for apportionment of input tax credit and blocked input tax
credit. This clause provides for the extent of apportionment of credit where the goods
or services or both are used partly for the purpose of any business and partly for other
purposes or where the goods or services or both are used by the registered person
partly for effecting taxable supplies including zero-rated supplies. This clause further
provides for a specific mechanism of taking of input tax credit by a banking company or
a fina
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plier in the State or
Union territory from where he makes a taxable supply of goods or services or both, if
his aggregate turnover in a financial year exceeds prescribed amount. This clause creates
liability for registration under the proposed Act with effect from the appointed day on
every person who is registered under an existing law.
Clause 23 provides that certain categories of persons are not liable for registration.
108
Clause 24 provides for compulsory registration of certain suppliers
notwithstanding that their aggregate turnover is below the exempted threshold provided
in clause 22.
Clause 25 provides for procedure of registration. This clause provides that every
person who is liable to be registered shall apply for registration in every such State or
Union territory in which he is so liable within thirty days from the date on which he
becomes liable to registration. This clause further provides that a casual taxable person
or a non-resident taxable person shall
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here any approval or rejection of
amendments has been done under the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act.
Clause 29 provides that the proper officer may, either on his own motion or on an
application filed by the registered person or by his legal heirs, in case of death of such
person, cancel the registration under certain specified circumstances. This clause further
provides that cancellation of registration under the State Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed
to be a cancellation of registration under the proposed Act.
Clause 30 provides for revocation of cancellation of registration where the
registration had been cancelled by the proper officer on his own motion. This clause
further provides that the revocation of cancellation of registration under the State
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the
case
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use 34 provides for issuance of a credit notes and debit notes in specified
situations. This clause also provides for maximum time and return in which details of
credit note and debit note are required to be declared.
109
Clause 35 provides that every registered person shall keep and maintain at his
principal place of business records showing true account of specified particulars. This
clause casts responsibility on owner or operator of warehouse or godown or any other
place used for storage of goods and on every transporter to maintain specified records.
This clause empowers the Commissioner to notify a class of taxable persons to maintain
additional accounts or documents for specified purpose or to maintain accounts in
other prescribed manner. This clause provides that every registered person whose
turnover during a financial year exceeds the prescribed limit shall get his accounts
audited by a chartered accountant or a cost accountant.
Clause 36 requires every registere
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sons, including verification, validation, modification or deletion of details of outward
supplies furnished by the corresponding suppliers. This clause further provides for
manner and time of communication of the details of supplies, as modified or accepted
by the recipient, to the corresponding supplier. This clause also provides for manner
and time period for rectification of error or omission and payment of tax and interest, if
any, as a consequence to the unmatched details.
Clause 39 provides for manner, conditions and time of furnishing of returns by
different categories of registered persons. This clause further provides that the tax is
required to be paid by the due date of filing of return. This clause also provides for the
time limit upto which rectification of any omission or incorrect particulars in the return
can be carried out.
Clause 40 provides that every registered person who has made outward supplies
in the period between the date on which he became liable
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e consequences of mis-
match.
Clause 44 provides that every registered person, other than certain specified
category of
persons, shall furnish an annual return along with a copy of the audited
110
annual accounts, a reconciliation statement and such other particulars as may be
prescribed.
Clause 45 provides that every registered person whose registration has been
cancelled shall furnish a final return within prescribed period.
Clause 46 provides for issuance of notice to registered person who has failed to
furnish a return.
Clause 47 provides for levy of fee for delayed filing of return.
Clause 48 provides for the manner of approval of goods and services tax
practitioner, their eligibility conditions, duties and obligations, manner of removal. This
clause also provides that a registered person may authorise a practitioner for filing of
various returns, but all the responsibilities under the proposed Act lie with the registered
person.
Clause 49 provides for payment of
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ited to the supplier in specified situations. This
clause elaborates on date of deduction, date of payment of the deducted amount to the
credit of Government and filing of prescribed statements.
Clause 52 provides for collection of tax at source by an electronic commerce
operator, at a notified rate where the consideration for supplies is to be collected by the
operator. This clause elaborates on date of collection, date of payment of the amount to
the credit of Government and filing of prescribed statements.
Clause 53 provides that on utilisation of input tax credit availed under the proposed
Act for payment of tax dues under the Integrated Goods and Services Tax Act, the
amount collected as central tax shall stand reduced by an amount equal to such credit
so utilised and the Central Government shall transfer an amount equal to the amount so
reduced from the central tax account to the integrated tax account in prescribed manner
and time.
Clause 54 provides that refund of
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des for payment of interest on delayed payment of refund. It fixes
the ceiling of interest rate in normal and other specified situations.
Clause 57 provides that tax and other amounts which are otherwise refundable
barring unjust enrichment shall be credited to a Consumer Welfare Fund.
Clause 58 provides that the money in the Consumer Welfare Fund would be used
for the welfare of the consumers. This clause also provides that the Government or the
authority specified by it shall maintain proper and separate account of the Fund and
prepare an annual statement of accounts.
Clause 59 provides for self-assessment by every registered person.
Clause 60 provides for provisional assessment on request by a taxable person in
specified situations. This clause provides for the manner of paying tax and also the
manner and time limits for finalising of provisional assessment.
Clause 61 provides for scrutiny of returns and other particulars and manner of
sorting out the discrepancies in t
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cost accountant.
Clause 67 provides for power and provides for the detailed procedure for carrying
out search, seizure and inspection to unearth non-compliance of provisions of the
proposed Act. This power can be exercised by an officer not below the rank of Joint
Commissioner or by an officer authorised by Joint Commissioner.
Clause 68 provides for inspection of goods in movement. This clause provides
that the Government may require the person-in-charge of a conveyance carrying any
consignment of goods of value exceeding specified amount to carry with him prescribed
documents and devices.
Clause 69 provides for power to arrest a person who has committed certain
specified offence.
Clause 70 provides for power to summon any person whose attendance is
considered necessary in any inquiry.
Clause 71 provides that any authorised officer shall have access to any place of
business of a registered person for the purposes of carrying out any audit, scrutiny,
verification and che
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ng with interest within thirty days of issue of show
cause notice, no penalty shall be payable and all proceedings in respect of the notice
shall be deemed to be concluded.
Clause 74 provides that in cases of tax not paid or short paid or erroneously
refunded or input tax credit wrongly availed or utilised, for reasons of fraud or wilful
misstatement or suppression of facts, the adjudication order will be issued within five
years from the due date of filing of annual return for the year to which the discrepancy
is noticed. Further, the show cause notice is required to be issued at least six months
prior to the time limit. This clause also provides that such notice need not be issued if
tax along with interest and penalty equal to fifteen per cent. of tax is paid before issue
of such notice. This clause also provides that where any person chargeable with tax
pays the tax along with interest and penalty equal to twenty five per cent. of tax within
thirty days of issue of show
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shall be deemed to be concluded, if the order is not
issued within the statutory time limit.
Clause 76 provides that any amount collected as tax, along with interest, from
customers shall be paid to account of the Government regardless of whether the supplies
are taxable or not. This clause further provides for issuance of a show cause notice for
the amount collected but not deposited. This clause also provides that the order needs
to be issued within one year from the date of issuance of such notice.
Clause 77 provides for refund of central tax in situations where intra-State supplies
are subsequently held to be inter-State supplies.
Clause 78 provides that any amount payable in pursuance of an order shall be
paid by such person within a period of three months, except in certain specified cases,
from the date of service of order failing which recovery proceedings shall be initiated.
Clause 79 provides for various modes of recovery of amount payable under the
proposed Act
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interest or any penalty due from the taxable person upto the time of such transfer.
Clause 86 provides that where an agent supplies or receives any taxable goods
on behalf of his principal, such agent and his principal shall, jointly and severally, be
liable to pay the tax payable on such goods.
Clause 87 provides for the liability of companies when two or more companies are
amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise.
Clause 88 provides for the liability of company and its directors when any company
is being wound up.
Clause 89 provides for the liability of director of a private company.
Clause 90 provides for the liability of the firm and each of the partners of the firm.
Clause 91 provides for the liability of guardians and trustees acting on behalf of
a minor or other incapacitated person.
Clause 92 provides for the liability of the Court of Wards, the Administrator
General, the Official Trustee or any receiver or manager.
Claus
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that the advance ruling is to be pronounced
within ninety days from the date of receipt of application.
Clause 99 provides that the Appellate Authority for Advance Ruling constituted
under the provisions of a State Goods and Services Tax Act or a Union Territory Goods
and Services Tax Act shall be deemed to be the Appellate Authority in respect of that
State or Union Territory under the proposed Act.
Clause 100 provides that any party aggrieved by any advance ruling may appeal
to the Appellate Authority within a period of thirty days from the date on which the
ruling sought to be appealed against is communicated.
114
Clause 101 provides that the Appellate Authority shall pass order within a period
of ninety days from the date of filing of the appeal or a reference. This clause also
provides that where the members of the Appellate Authority differ on any point referred
to in appeal or reference; it shall be deemed that no advance ruling can be issued in
respect of the que
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t the Authority or the Appellate Authority shall have
power to regulate its own procedure.
Clause 107 provides the tax payer or the department may appeal against any
decision or order passed by an adjudicating authority under the proposed Act or the
State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act
within three months or six months respectively. The clause provides for a pre-deposit
of ten per cent. for admittance of the appeal filed by the tax payer and grant of automatic
stay on the remaining amount.
Clause 108 provides power of revision to the Commissioner. The clause provides
that the Revisional Authority, on his own motion, or upon request from Commissioner
of State tax or the Commissioner of Union territory tax may revise an order passed by an
officer subordinate to him if he considers it to be erroneous and prejudicial to the
interest of revenue.
Clause 109 provides for constitution of Appellate Tribunal for hearing appeals
against
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cess to be followed by Appellate Tribunal while
confirming, modifying or annulling the decision or order against which an appeal has
been filed.
Clause 114 provides for financial and administrative power of the President of the
Appellate Tribunal over the National and Regional Benches.
115
Clause 115 provides for payment of interest where the pre-deposits are required
to be refunded consequent to any order of the Appellate Authority or of the Appellate
Tribunal.
Clause 116 provides for qualification, disqualification and other procedures relating
to authorised representative.
Clause 117 provides that the appeals to the High Court can be filed by a person,
aggrieved by an order of the State Bench or Area Bench of the Tribunal, within one
hundred and eighty days. This clause also provides that the High Court may admit the
appeal on substantial question of law.
Clause 118 provides for appeal before the Supreme Court from an order of the
National Bench or Regional Benches o
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23 provides for a penalty for failure to furnish information return under
clause 150.
Clause 124 provides for a fine on any person who fails to furnish any
or return under clause 151.
information
Clause 125 provides for a general penalty extending to twenty-five thousand
rupees for any contravention to the provisions of the proposed Act and where no
penalty has been separately specified for such contravention.
Clause 126 provides for general disciplines which shall be followed by the officer
imposing penalty under the proposed Act.
Clause 127 provides for the proper officer to impose penalty which is not covered
under any proceedings under specified clauses of the proposed Act.
Clause 128 confers power to the Government to waive penalty in part or full, any
penalty referred to in specified sections of the proposed Act or any late fee for specified
class of taxpayers and under specified circumstances.
Clause 129 provides for provisions relating to detention, seizure and r
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wrongful declaration
of information by any person engaged in connection with the collection of statistics
under clause 151 or any person engaged in connection with the provision of service on
the common portal or the agent of common portal.
Clause 134 provides for restriction to Courts to take cognizance of any offence
under the proposed Act or the rules made thereunder except with the previous sanction
of the Commissioner.
Clause 135 provides presumption of culpable mental state by the court unless
otherwise proved by the accused.
Clause 136 provides for relevancy of the statements made and signed by a person
on appearance
in response to any summons.
Clause 137 provides that if the person who committed an offence is a company,
the person who was in charge and responsible for the conduct of business of the
company shall be deemed to be guilty of the offence and punished accordingly.
Clause 138 provides for compounding of any offence under the proposed Act,
either before
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issibility of micro films, facsimile copies of documents
and computer printouts as evidence.
Clause 146 provides for notification of 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 other functions.
Clause 147 confers powers on the Government to notify certain supplies of goods
as deemed exports on the recommendations of the Council.
Clause 148 confers powers on the Government to notify certain classes of
registered persons, and the special procedures to be followed by such persons on the
recommendations of the Council.
Clause 149 provides for the assignment and provision of parameters for Goods
and Services tax compliance rating.
117
Clause 150 provides for list of persons who are obligated to furnish information
return and the procedure to be followed by such persons.
Clause 151 confers powers on the Commissioner to direct colle
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ppellate Tribunal or any other officer appointed or authorised under the proposed
Act for anything which is in good faith done or intended to be done under the proposed
Act or rules made thereunder.
Clause 158 provides that no particulars contained in any statement made, return
furnished or accounts or documents produced in accordance with the proposed Act
should be disclosed. The clause also provides for specific circumstances under which
such information can be disclosed.
Clause 159 confers power on the Commissioner, or any other officer authorised
by him to publish the name of any person and any other particulars relating to any
proceedings or prosecution under the proposed Act if it is necessary in public interest
to do so.
Clause 160 provides that 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, initi
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ment before each House of the Parliament.
Clause 167 provides that the Commissioner may direct that
any power exercisable
by any authority or officer under the proposed Act may be exercisable also by another
authority or officer, subject to specified conditions.
118
Clause 168 confers powers to the Board to issue orders, instructions or directions
to the central tax officers for uniform implementation of the provisions of the proposed
Act.
Clause 169 provides for methods which should be followed for communication of
any decision, order, summons, notice or other communication under the proposed Act.
Clause 170 provides for rounding off of tax, interest, penalty, fine or any other
sum payable and the amount of refund or any other sum due.
Clause 171 provides that it is mandatory to pass on the benefit due to reduction
in rate of tax or from input tax credit to the consumer by way of commensurate reduction
in prices.
Clause 172 confers powers on the Central Government to m
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of the Bill provides for the establishment of an Appellate Authority for
Advance Ruling under the State Goods and Services Tax Act or Union Territory Goods and
Services Tax Act and adoption of the same under the Central Goods and Services Tax Act.
4. Sub-clause (1) of clause 109 of the Bill provides for the establishment of the Goods
and Services Tax Appellate Tribunal by the Central Government for hearing appeals against
the orders passed by the Appellate Authority or the Revisional Authority. Sub-clause (8) of
clause 110 of the Bill provides for the salary and allowances payable to the President and
Members of the Appellate Tribunal.
5. Sub-clause (2) of clause 171 of the Bill provides for establishment of an authority for
an anti-profiteering clause in order to ensure that business passes on the benefit of reduced
tax incidence on goods or services or both to the consumers.
6. The total financial implications in terms of recurring and non-recurring expenditure
involved i
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ant and machinery as
specified under section 18; (f) conditions and restrictions to allow input tax credit
on inputs sent to a job-worker for job-work under section 19; (g) conditions and
restrictions to allow input tax credit on capital goods sent to a job worker for job
work under section 19; (h) manner of distribution of input tax credit by input
service distributor under section 20; (i) manner and conditions for getting
registered under section 25; (j) conditions for getting separate registration for
business vertical under section 25; (k) period in which tax invoice is to be issued
under section 31; (1) particulars to be declared on a tax invoice and a time in which
such invoices are to be issued under section 31; (m) particulars to be declared on
a credit or debit note under section 34; (n) particulars required to be maintained
by a registered person at his principal place of business under section 35;
(o) form and manner in which details of outward supplies are to be
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filed under section 60; (zb) manner in which returns are to be scrutinised
under section 61; (zc) frequency and manner in which audit will be taken by tax
authorities under section 65; (zd) manner in which advance ruling pronounced is
to be certified under section 98; (ze) form, manner and fee for appeal to Appellate
Authority under section 100; (zf) manner in which Advance Ruling pronounced
by the Appellate Authority is to be certified under section 101;(zg) appeals to
Appellate Authority under section 107; (zh) constitution of selection committee
and their manner of working for selection of the Technical Member (Centre) and
Technical Member (State) of the National Bench and Regional Benches under
section 110; (zi) verification of memorandum of cross objection under section
112; (zj) manner in which President exercise his financial and administrative powers
under section 114; (zk) time, form and manner in which persons furnish information
return under section 150; (zl) fo
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