Amendments to MGST Act, 2017 [L. A. BILL No. LXXI OF 2018. Dt. 22-11-2018]
L.A. BILL No. LXXI OF 2018 Dated:- 22-11-2018 Maharashtra SGST
GST – States
Maharashtra SGST
Maharashtra SGST
In pursuance of clause (3) of article 348 of the Constitution of India, the following translation in English of the Maharashtra Goods and Services Tax (Amendment) Bill, 2018 (L. A. Bill No. LXXI of 2018), introduced in the Maharashtra Legislative Assembly on the 22nd November 2018, is hereby published under the authority of the Governor.
By order and in the name of the Governor of Maharashtra,
RAJENDRA G. BHAGWAT,
Secretary (Legislation) to Government,
Law and Judiciary Department.
L. A. BILL No. LXXI OF 2018.
A BILL
further to amend the Maharashtra Goods and Services Tax Act, 2017.
WHEREAS both Houses of the State Legislature were not in session ;
AND WHEREAS the Governor of Maharashtra was satisfied that circumstances existed which rendered it necessary for him to take immedia
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erence to the coming into force of that provision.
Amendment of section 2 of Mah. XLIII of 2017.
2. In section 2 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017.) (hereinafter referred to as the “principal Act”),
(a) in clause (4), for the words “the Appellate Authority and the Appellate Tribunal” the words, brackets and figures, “the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171” shall be substituted ;
(b) in clause (16), for the words “Central Board of Excise and Customs” the words “Central Board of Indirect Taxes and Customs” shall be substituted ;
(c) in clause (17), for sub-clause (h), the following sub-clause 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”;
(d) clause (18) shall be deleted ;
(e) in clause (35), for the word, brackets and letter “clause (c)”
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r sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely :
“(1A) Where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.”;
(c) in sub-section (3), for the words, brackets and figures “sub-sections (1) and (2)” the words, brackets, figures and letter “sub-sections (1), (1A) and (2)” shall be substituted.
Amendment of section 9 of Mah. XLIII of 2017.
4. In section 9 of the principal Act, for sub-section (4), the following subsection shall be substituted, namely:
“(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such
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en per cent. of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher.”;
(b) in sub-section (2), for clause (a), the following clause shall be substituted, namely:
“(a) save as provided in sub-section (1), he is not engaged in the supply of services;”.
Amendment of section 12 of Mah. X
6. In section 12 of the principal Act, in sub-section (2), in clause (a), the words, brackets and figure “sub-section (1) of” shall be deleted.
Amendment of section 13 of Mah. XLIII of 2017.
7. In section 13 of the principal Act, in sub-section (2), the words, brackets and figure “sub-section (2) of “, at both the places where they occur, shall be deleted.
Amendment of section 16 of Mah. XLIII of 2017.
8. In section 16 of the principal Act, in sub-section (2),
(a) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:-
“Explanation.-For the purposes of this clause, it shall be deemed that the registered person has re
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ule.”;
(b) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:-
“(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used
(i) for making the following taxable supplies, namely:-
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):
Provi
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istered 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; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession :
Provided that, the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.”.
Amendment of section 20 of Mah. XLIII of 2017.
10. In section 20 of the principal Act, in the Explanation, in clause (c), for the words and figures “under entry 84” the words, figures and letter “under entries 84 and 92A” shall be substituted.
Amendment of section 22 of Mah. XLIII of 2017.
11. In section 22 of the principal Act, –
(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that,
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–
“Provided further that, a person having a unit, as defined in the Special Economic Zones Act, 2005, (28 of 2005.) in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State.”;
(b) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:
“Provided that, a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.”.
Amendment of section 29 of Mah. XLIII of 2017.
14. In section 29 of the principal Act,
(a) in the marginal note, after the word “Cancellation” the words “or suspension” shall be inserted ;
(b) in sub-section (1), after clause (c), the following proviso shall be inserted, namely:-
“Provided that, during pendency of the proceedings relating to cancellation of reg
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more debit notes for supplies made in a financial year” shall be substituted.
Amendment of section 35 of Mah. XLIII of 2017.
16. In section 35 of the principal Act, in sub-section (5), the following proviso shall be inserted, namely :-
“Provided that, nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.”.
Amendment of section 39 of Mah. XLIII of 2017.
17. In section 39 of the principal Act,
(a) in sub-section (1),-
(i) for the words “in such form and manner as may be prescribed” the words “in such form, manner and within such time as may be prescribed” shall be substituted ;
(ii) the words “on or before the twentieth day of the month succeeding such calendar month or part thereof” shall be
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n the proviso, for the words “the end of the financial year” the words “the end of the financial year to which such details pertain” shall be substituted.
Insertion of section 43A in Mah. XLIII of 2017.
18. After section 43 of the principal Act, the following section shall be inserted, namely :-
Procedure for furnishing return and availing input tax credit.
“43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of 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 cred
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es of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for nonrecovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such as may be prescribed.”.
Amendment of section 48 of Mah. XLIII of 2017.
19. In section 48 of the principal Act, in sub-section (2), after the word and figures “section 45” the words “and to perform such other functions” shall be inserted.
Amendment of section 49 of Mah. XLIII of 2017.
20. In section 49 of the principal Act,
(a) in sub-section (2), for the word and fi
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contained in section 49, the input tax credit on account of State tax shall be utilised towards payment of integrated tax or State tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.
Order of utilization of input tax credit.
49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.”.
Amendment of section 52 of Mah. XLIII of 2017.
22. In section 52 of the principal Act, in sub-section (9), for the word and figures “section 37” the words and figures “section 37 or section 39” shall be substituted.
Amendment of section 54 of Mah. XLIII of 2017.
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ion (4) or, as the case may be, sub-section (5) of section 25. “.
Amendment of section 107 of Mah. XLIII of 2017.
25. In section 107 of the principal Act, in sub-section (6), in clause (b), after the words “arising from the said order,” the words “subject to a maximum of twenty-five crore rupees,” shall be inserted.
Amendment of section 112 of Mah. XLIII of 2017.
26. In section 112 of the principal Act, in sub-section (8), in clause (b), after the words “arising from the said order,” the words “subject to a maximum of fifty crore rupees,” shall be inserted.
Amendment of section 129 of Mah. XLIII of 2017.
27. In section 129 of the principal Act, in sub-section (6) and in the proviso, for the words “seven days”, the words “fourteen days” shall be substituted.
Amendment of section 143 of Mah. XLIII of 2017.
28. In section 143 of the principal Act, in sub-section (1), in clause (b), after the proviso, the following proviso shall be inserted, namely :-
“Provided further that, the p
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before clearance for home consumption;
(b) supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.”;
(ii) the existing Explanation shall be renumbered as Explanation 1 and after Explanation 1 as so renumbered, the following Explanation shall be inserted, namely:-
“Explanation 2.-For the purposes of paragraph 8, the expression “warehoused goods” shall have the same meaning as assigned to it in the Customs Act, 1962. (52 of 1962.)”.
Repeal of Mah. Ord. XXII of 2018 and saving.
32. (1) The Maharashtra Goods and Services Tax (Amendment) Ordinance, 2018, (Mah. Ord.XXII of2018.) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken (including any notification or order issued) under the corresponding provisions of the principal Act, as amended by the said Ordinance, shall be deem
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difficulties, it was proposed to amend the Maharashtra Goods and Services Tax Act, 2017, suitably.
3. The then proposed Amendments, inter alia, provided for the following, namely:-
(i) to amend section 7 of the Act, so as to clarify the scope of supply ;
(ii) to amend section 9 of the Act, for empowering the State Government to notify the classes of registered persons for paying the tax on reverse charge basis, in respect of receipt of supplies of certain specified categories of goods or services or both, from the unregistered suppliers ;
(iii) to amend section 10 of the Act, so as to enhance the limit of composition levy from one crore rupees to one crore and fifty lakh rupees ;
(iv) to amend section 17 of the Act, so as to specify the scope of input tax credit ;
(v) to amend section 22 of the Act, in view of the enhancement in the exemption limit for registration in the special category States from ten lakh rupees to twenty lakh rupees ;
(vi) to amend section 25 of the Act, s
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ircumstances existed which rendered it necessary for him to take immediate action further to amend the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), for the purposes aforesaid, the Maharashtra Goods and Services Tax (Amendment) Ordinance, 2018 (Mah. Ord. XXII of 2018), was promulgated by the Governor of Maharashtra on the 13th October 2018.
5. The Bill is intended to replace the said Ordinance by an Act of the State Legislature.
SUDHIR MUNGANTIWAR,
Minister for Finance.
Mumbai,
dated the 19th November 2018.
MEMORANDUM REGARDING DELEGATED LEGISLATION
The Bill involves the following proposals for delegation of legislative power, namely :-
Clause 1(3).-Under this clause, power is taken to the State Government, to bring into force the provisions of the Act by notification in the Official Gazette, and appoint different dates for different sections.
Clause 13.-Under this clause, power is taken to the State Government to prescribe, by rules, the procedure for a
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