GST – States – TAMIL NADU ORDINANCE NO. 2 OF 2018 – Dated:- 14-11-2018 – Tamil Nadu Acts and Ordinances The following Ordinance which was promulgated by the Governor on the 13th November 2018 is hereby published for general information:- An Ordinance to amend the Tamil Nadu Goods and Services Tax Act, 2017. WHEREAS the Legislative Assembly of the State is not in session and the Governor of Tamil Nadu is satisfied that circumstances exist which render it necessary for him to take immediate action for the purposes hereinafter appearing; NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 213 of the Constitution, the Governor hereby promulgates the following Ordinance:- 1. Short title and commencement. (1) This Ordinance may be called the Tamil Nadu Goods and Services Tax (Amendment) Ordinance, 2018. (2) (i) Sections 3 and 30 shall be deemed to have come into force on the 1st day of July 2017; (ii) Other sections of this Ordinance shall come into force on such da
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lause shall be substituted, namely:- "(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and"; (4) clause (18) including the Explanation thereunder shall be omitted; (5) in clause (35), for the expression "clause (c)", the expression "clause (b)" shall be substituted; (6) in clause (69), in sub-clause (f), after the expression "Article 371", the expression "and Article 371J" shall be inserted; (7) in clause (102), the following Explanation shall be added, namely:- "Explanation.- For the removal of doubts, it is hereby clarified that the expression "services" includes facilitating or arranging transactions in securities.". 3. Amendment of section 7. In section 7 of the principal Act,- (1) in sub-section (1),- (a) in clause (b), after the expression "or furtherance of business;", the expression "and" shall be
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th received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, 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 such supply of goods or services or both.". 5. Amendment of section 10. In section 10 of the principal Act,- (1) in sub-section (1),- (a) for the expression "in lieu of the tax payable by him, an amount calculated at such rate", the expression "in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate" shall be substituted; (b) in the proviso, for the expression "one crore rupees, as may be recommended by the Council.", the expression "one crore and fifty lakh rupees as may be recommended by the Council:" shall be substituted; (c) after the proviso, the following proviso shall be added, namely:- "Provided further that a
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ll be substituted, namely:- "Explanation.- For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person."; (2) in clause (c), for the expression "section 41", the expression "section 41 or section 43A" shall be substituted. 9. Amendment of section 17. In section 17 of the principal Act,- (1) in sub-section (3), the following Explanation shall be added, namely:- "Explanation.- For the purposes of this sub-section, the expression "value of exempt supply'' shall not incl
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nance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): Provided that the input tax credit in respect of such services shall be available,- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) where received by a taxable person engaged,- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; (b) the following supply of goods or services or both,- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input tax credit in respect of such goods or serv
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ll be added, namely:- "Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover."; (2) in the Explanation, in clause (iii), the following shall be added at the end, namely:- "except the State of Jammu and Kashmir and the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.". 12. Amendment of section 24. In section 24 of the principal Act, lor clause (x), the following clause shall be substituted, namely:- "(x) every electronic commerce operator who is required to collect tax at source under section 52.". 13. Amendment of section 25. In section 25 of the principal Act,- (1) in sub-section (1), after the proviso
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all be added, namely:- "Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed."; (3) in sub-section (2), after the proviso, the following proviso shall be added, namely:- "Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.". 15. Amendment of section 34. In section 34 of the principal Act,- (1) in sub-section (1),- (i) for the expression "Where a tax invoice has", the expression "Where one or more tax invoices have" shall be substituted; (ii) for the expression "a credit note", the expression "one or more credit notes for supplies made in a financial year" shall be substituted; (2) in sub-section (3),- (i) for the expressi
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er and within such time as may be prescribed" shall be substituted; (b) the expression "on or before the twentieth day of the month succeeding such calendar month or part thereof" shall be omitted; (c) the following proviso shall be added, namely:- "Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein."; (2) in sub-section (7), the following proviso shall be added, namely:- "Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein."; (3) in sub-section (9),- (a) for the expression
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f input tax credit by the recipient and verification thereof shall be such as may be prescribed. (3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed. (4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section. (5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act. (6) The supplier and the recipient of a supply shall be jointly and severally liable to pay ta
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;section 45", the expression "and to perform such other functions" shall be inserted. 20. Amendment of section 49. In section 49 of the principal Act,- (1) in sub-section (2), for the expression "section 41", the expression "section 41 or section 43A" shall be substituted; (2) in sub-section (5),- (a) in clause (c), the following proviso shall be added, namely:- "Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax."; (b) in clause (d), the following proviso shall be added, namely:- "Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax.". 21. Insertion of new sections 49A
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ct, in sub-section (9), for the expression "section 37", the expression "section 37 or section 39" shall be substituted. 23. Amendment of section 54. In section 54 of the principal Act,- (1) in sub-section (8), in clause (a),- (a) for the expression "on zero-rated supplies", the expression "on export" shall be substituted; (b) for the expression "such zero-rated supplies", the expression "such exports" shall be substituted; (2) in the Explanation, in clause (2),- (a) in sub-clause (c), in item (i), after the expression "foreign exchange", the expression "or in Indian rupees wherever permitted by the Reserve Bank of India" shall be inserted; (b) for sub-clause (e), the following sub-clause shall be substituted, namely:- "(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period
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luding the proviso, for the expression "seven days", in two places where it occurs, the expression "fourteen days" shall be substituted. 28. Amendment of section 143. In section 143 of the principal Act, in sub-section (1), in clause (b), after the proviso, the following proviso shall be added, namely:- "Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years, respectively.". 29. Amendment of Schedule I. In Schedule I of the principal Act, in paragraph 4, for the expression "taxable person", the expression "person" shall be substituted. 30. Amendment of Schedule II. In Schedule II of the principal Act, in the heading, after the expression "ACTIVITIES", the expression "OR TRANSACTIONS" shall be inserted. 31. Amendment of Schedule III. In Schedule III of the principal Act,- (1) after para
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