MODEL GST LAW
GST
Dated:- 14-6-2016
GOODS AND SERVICES TAX ACT, 2016
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act)
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016
Download PDF
GOODS AND SERVICES TAX ACT, 2016
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act)
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016
=============
Document 1
सतà¥à¤¯à¤®à¥‡à¤µ जयते
MODEL GST LAW
Page 1 of 190
Empowered Committee of State Finance Ministers
June, 2016
GOODS AND SERVICES TAX ACT, 2016
CHAPTER – I
PRELIMINARY
1.
Short title, extent and commencement
2.
Definitions
3.
Meaning and scope of supply
CHAPTER- II
ADMINISTRATION
4.
Classes of officers under the Central Goods and Services Tax Act
4.
Classes of officers under the State Goods and Services Tax Act
5.
6.
Appointment of officers under the Central Goods
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
on
21.
Cancellation of registration
22.
Revocation of cancellation of registration
CHAPTER
–
VII
TAX INVOICE, CREDIT AND DEBIT NOTES
23.
Tax invoice
23 A. Amount of tax to be indicated in tax invoice and other documents
24.
Credit and debit notes
CHAPTER- VIII
RETURNS
25.
Furnishing details of outward supplies
26. Furnishing details of inward supplies
27.
Returns
27A.
First Return
28.
Claim of input tax credit and provisional acceptance thereof
29.
Matching, reversal and re-claim of input tax credit
29A. Matching, reversal and re-claim of reduction in output tax liability
30.
Annual return
31.
Final return
32.
Notice to return defaulters
33.
Levy of late fee
34.
Tax Return Preparers
CHAPTER- IX
PAYMENT OF TAX
35.
Payment of tax, interest, penalty, and other amounts
36. Interest on delayed payment of tax
37.
Tax deduction at source
CHAPTER- IXA
TRANSFER OF INPUT TAX CREDIT
37A. Transfer of input tax credit
38.
Refund of tax
39.
Interest
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
very of tax
55.
Payment of tax and other amount in installments
56.
57.
58.
Transfer of property to be void in certain cases
Tax to be first charge on property
Provisional attachment to protect revenue in certain cases
59. Continuation of certain recovery proceedings
CHAPTER- XV
INSPECTION, SEARCH, SEIZURE AND ARREST
60.
Power of inspection, search and seizure
61.
Inspection of goods in movement
62.
Power to arrest
63.
64.
65.
Power to summon persons to give evidence and produce documents
Access to business premises
Officers required assisting CGST/SGST Officers
CHAPTER- XVI
OFFENCES AND PENALTIES
66.
Offences and penalties
67.
General penalty
68.
General disciplines related to penalty
69.
Detention of goods and conveyances, and levy of penalty
70.
Confiscation of goods and levy of penalty
71.
Confiscation of conveyances
72. Confiscation or penalty not to interfere with other punishments
CHAPTER- XVII
PROSECUTION AND COMPOUNDING OF OFFENCES
73.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
sion of time taken for copy
92.
Appeal not to be filed in certain cases
93.
Non appealable decisions and orders
Page 6 of 190
CHAPTER- XIX
ADVANCE RULING
94.
Definitions
95.
Authority for Advance Ruling
96.
Appellate Authority for Advance Ruling
97.
Application for advance ruling
98.
Procedure on receipt of application
99.
Appeal to the Appellate Authority
100.
Orders of Appellate Authority
101.
Rectification of advance ruling
102.
Applicability of advance ruling
103.
Advance ruling to be void in certain circumstances
104.
Powers of the Authority and Appellate Authority
105.
Procedure of the Authority and Appellate Authority
106.
107.
108.
109.
CHAPTER- XX
SETTLEMENT OF CASES
Page 7 of 190
CHAPTER- XXI
PRESUMPTION AS TO DOCUMENTS
Presumption as to documents in certain cases
Admissibility of micro films, facsimile copies of documents and computer printouts
as documents and as evidence
CHAPTER- XXII
LIABILITY TO PAY IN CERTAIN CASES
Liability
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
c. not to be invalid on certain grounds
Rectification of mistakes or errors apparent from record
129.
130.
Bar of jurisdiction of civil courts
131.
Levy of fees
132. Power of Central (or State) Government to make rules
132A. General power to make Regulations
133. Delegation of powers
134. Instructions to GST Officers
Page 8 of 190
Page 9 of 190
135.
Removal of difficulties
136.
Service of Notice in certain circumstances
137.
Rounding off of tax etc
138.
139.
Effect of amendments, etc., of rules, notifications or orders
Publication of rules and notifications and laying of rules before Parliament / State
Legislature
CHAPTER- XXIV
REPEAL AND SAVING
140.
Repeal and saving
CHAPTER- XXV
TRANSITIONAL PROVISIONS
141.
General provisions
142.
Migration of existing taxpayers to GST
143. Amount of CENVAT credit carried forward in a return to be allowed as input
tax credit
144. Unavailed cenvat credit on capital goods, not carried forward in a return, to be
allo
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
earlier law
155. Claim of cenvat credit to be disposed of under the earlier law
156. Finalization of proceedings relating to output duty liability
157. Treatment of the amount recovered or refunded in pursuance of assessment
or adjudication proceedings
158. Treatment of the amount recovered or refunded pursuant to revision of
returns
159. Treatment of long term construction / works contracts
160. Progressive or periodic supply of goods or services
161. Treatment of retention payments
162. Credit distribution of service tax by ISD
162A.Tax paid on goods lying with agents to be allowed as credit
162B. Tax paid on capital goods lying with agents to be allowed as credit
162C. Treatment of branch transfers
162D. Goods sent on approval basis returned on or after the appointed day
162 E. Deduction of tax source
SCHEDULES
I
Matters to be treated as supply without consideration
II
Matters to be treated as supply of goods or services
III
Liability to be registered
IV
Pag
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
assigned to it in section 3 of the
Transfer of Property Act, 1882;
(2)
“address of delivery” means the address of the recipient of goods and/or
services indicated on the tax invoice issued by a taxable person for delivery of such
goods and/or services;
(3)
“address on record” means the address of the recipient as available in the
records of the supplier;
(4)
“adjudicating authority” means any authority competent to pass any order or
decision under this Act, but does not include the Board, the First Appellate Authority and
the Appellate Tribunal;
(5) “agent” means a person who carries on the business of supply or receipt of
goods and/or services on behalf of another, whether disclosed or not and includes a
factor, broker, commission agent, arhatia, del credere agent, intermediary or an
auctioneer or any other mercantile agent, by whatever name called, and whether of the
same description as hereinbefore mentioned or not;
(6) “aggregate turnover” means the aggregate valu
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
who cultivates land personally, for the purpose of
agriculture;
(9) “Appellate Tribunal” means the National Goods and Services Tax Appellate
Tribunal constituted under section 81;
(10) “appointed day” means the date on which section 1 of this Act comes into
effect;
(11) “appropriate Government” means the Central Government in case of the IGST
and the CGST, and the State Government in case of the SGST;
(12) “assessment” means determination of tax liability under this Act and includes
self-assessment, re-assessment, provisional assessment, summary assessment and
best judgement assessment;
(13) “associated enterprise” shall have the meaning assigned to it in section 92A of
the Income Tax Act, 1961;
(14) “audit” means detailed examination of records, returns and other documents
maintained or furnished by the taxable person under this Act or rules made thereunder
or under any other law for the time being in force to verify, inter alia, the correctness of
turnover declared, t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ation, society, or any such body (for a subscription or any
other consideration) of the facilities or benefits to its members, as the case may be;
(f) admission, for a consideration, of persons to any premises; and
(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;
(18) “business vertical” shall have the meaning assigned to a ‘business segment' in
Accounting Standard 17 issued by the Institute of Chartered Accountants of India;
Page 14 of 190
(19)
“capital assets” shall have the meaning as assigned to it in the Income Tax Act,
1961 (43 of 1961) but the said expression shall not include jewellery held for personal
use or property not connected with the business;
(20) “capital goods” means:
(A) the following goods, namely:-
(i) all goods falling within Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading
6805, grinding wheels and the like,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
courier agency service;
(C) motor vehicle designed to carry passengers including their chassis, registered in the
name of the supplier of service, when used for supplying the service of-
(i) transportation of passengers; or
(ii) renting of such motor vehicle; or
(iii) imparting motor driving skills;
(D) Components, spares and accessories of motor vehicles which are capital goods for
the taxable person.
(21) “casual taxable person” means a person who occasionally undertakes
transactions involving supply of goods and/or services in the course or furtherance of
Page 15 of 190
business whether as principal, agent or in any other capacity, in a taxable territory
where he has no fixed place of business;
(22)
2016;
“CGST” means the tax levied under the Central Goods and Services Tax Act,
(23) “chartered accountant” means a chartered accountant within the meaning of
the Chartered Accountants Act, 1949 (38 of 1949);
(24) “commissioner” means the Commissioner of Central G
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and/or services, whether by
the said person or by any other person;
(b) the monetary value of any act or forbearance, whether or not voluntary, in respect
of, in response to, or for the inducement of, the supply of goods and/or services,
whether by the said person or by any other person:
Provided that a deposit, whether refundable or not, given in respect of the supply of
goods and/or services shall not be considered as payment made for the supply unless
the supplier applies the deposit as consideration for the supply;
(29) “continuous journey” means a journey for which a single or more than one
ticket or invoice is issued at the same time, either by a single supplier of service or
through an agent acting on behalf of more than one supplier of service, and which
involves no stop over between any of the legs of the journey for which one or more
separate tickets or invoices are issued;
Explanation. For the purposes of this clause, 'stopover' means a place where a
passenger
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he Cost and
Works Accountants Act, 1959 (23 of 1959);
(34)
“Council” means the Goods and Services Tax Council established under Article
279A of the Constitution;
(35) “credit note” means a document issued by a taxable person as referred to in
sub-section (1) of section 24;
(36) “debit note” means a document issued by a taxable person as referred to in
sub-section (2) of section 24;
(37) “deemed exports”, as notified by the Central Government/State Government on
the recommendation of the Council, refer to those transactions in which the goods
supplied do not leave India, and payment for such supplies is received either in Indian
Rupees or in convertible foreign exchange;
(38) “document” includes written or printed record of any sort and electronic record
as defined in the Information Technology Act, 2000 [21 of 2000];
(39) “earlier law” means any of the following laws, that is to say,
(a) . . .
(b) …
(c) . . .
as amended from time to time and includes enactments whi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
outside India;
(44) the supply of any service shall be treated as “export of service” when
(a)
the supplier of service is located in India,
(b)
the recipient of service is located outside India,
(c)
the place of supply of service is outside India,
(d) the payment for such service has been received by the supplier of service in
convertible foreign exchange, and
(e) the supplier of service and recipient of service are not merely establishments of a
distinct person;
Explanation. For the purposes of clause (e), an establishment of a person in India and
any of his other establishment outside India shall be treated as establishments of distinct
persons.
(45) “First Appellate Authority” means an authority referred to in section 79;
(46)
“fixed establishment” means a place (other than the 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
mmatical variations and cognate expressions,
means bringing into India from a place outside India;
(52) the supply of any service shall be treated as an “import of service” if,
(a) the supplier of service is located outside India,
(b) the recipient of service is located in India,
(c) the place of supply of service is in India, and
(d) the supplier of service and the recipient of service are not merely establishments of a
distinct person;
Page 18 of 190
Explanation 1.- An establishment of a person in India and any of his other establishment
outside India shall be treated as establishments of distinct persons.
Explanation 2.- A person carrying on a business through a branch or agency or
representational office in any territory shall be treated as having an establishment in
that territory.
(53)
“India” means,-
(a) the territory of the Union as referred to in clauses (2) and (3) of Article 1 of the
Constitution;
(b) its territorial waters, continental shelf, exclusive eco
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
upply in the course or furtherance of business;
(56) “Input Service Distributor” means an office of the supplier of goods and / or
services which receives tax invoices issued under section 23 towards receipt of input
services and issues tax invoice or such other document as prescribed for the purposes of
distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the said
services to a supplier of taxable goods and / or services having same PAN as that of the
office referred to above;
Explanation. For the purposes of distributing the credit of CGST (SGST in State Acts)
and/or IGST, Input Service Distributor shall be deemed to be a supplier of services.
(57) “input tax” in relation to a taxable person, means the {IGST and CGST}/{IGST
and SGST} charged on any supply of goods and/or services to him which are used, or
are intended to be used, in the course or furtherance of his business and includes the tax
payable under sub-section (3) of section 7;
(58) “input
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ate 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;
a Regional Council or a District Council constituted under the Sixth Schedule to
the Constitution;
(e)
(f)
a Development Board constituted under Article 371 of the Constitution; or
(g)
(64)
a Regional Council constituted under Article 371A of the Constitution;
“location of recipient of service” means:
(i) where a supply is received at a place of business for which registration has been
obtained, the location of such place of business;
(ii) where a supply is received at a place other than the place of business for which
registration has been obtained, that is to say, a fixed establishment elsewhere, the
location of such fixed establishment;
(iii) where a supply is received at more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most directly
concerned wi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
h a recipient of a supply is
required to pay in order to obtain the goods and/or services of like kind and quality at or
Page 20 of 190
about the same time and at the same commercial level where the recipient and the
supplier are not related;
(68) “money” means Indian legal tender or any foreign currency, cheque, promissory
note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order,
postal or electronic remittance or any such similar instrument when used as
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;
(69) “non-resident taxable person” means a taxable person who occasionally
undertakes transactions involving supply of goods and/or services whether as principal
or agent or in any other capacity but who has no fixed place of business in India;
(70) “non-taxable territory” means the territory which is outside the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
dia;
(g) any corporation established by or under any Central, State or Provincial Act or a
Government company as defined in section 2(45) of the Companies Act, 2013 (18 of
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 cooperative societies;
(j) a local authority;
(k) government;
(1) society as defined under the Societies Registration Act, 1860 (21 of 1860);
(m) trust; and
(n) every artificial juridical person, not falling within any of the preceding sub-clauses;
(75) “place of business” includes
(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, provides or receives
goods and/or services; or
(b) a place where a taxable person maintains his books of account; or
Page 21 of 190
(c) a place where a taxable person is engaged in business through an agent, by
wha
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
o 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;
Explanation. The expression “recipient” shall also include an agent acting as such on
behalf of the recipient in relation to the goods and/or services supplied.
(81)
“regulations” means the regulations made by the Board/Commissioner under
any provision of the Act on the recommendation of the Council;
(82)
persons shall be deemed to be “related persons” if only –
(a)
they are officers or directors of one another's businesses;
(c)
they are employer and employee;
(b) they are legally recognized partners in business;
(d) any person directly or indirectly owns, controls or holds five per cent or more of
the outstand
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s made thereunder;
(85) “reverse charge”, means the liability to pay tax by the person receiving goods
and/or services instead of the person supplying the goods and / or services in respect
of such categories of supplies as the Central or a State Government may, on the
recommendation of the Council, by notification, specify;
(86) “rules” means the rules made by the Central/State Government under any
provision of the Act on the recommendation of the Council;
(87) “schedule” means a schedule appended to this Act;
(88) “services” means anything other than goods;
Explanation: Services include intangible property and actionable claim but does not
include money.
(89) “SGST” means the tax levied under the State Goods and Services Tax Act;
(90) “Special Economic Zone” shall have the meaning assigned to it in clause (za) of
section 2 of the Special Economic Zones Act, 2005 [28 of 2005];
(91) “supplier” in relation to any goods and/or services shall mean the person supp
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
cation service” means service of any description (including
electronic mail, voice mail, data services, audio text services, video text services, radio
paging and cellular mobile telephone services) which is made available to users by
means of any transmission or reception of signs, signals, writing, images and sounds or
intelligence of any nature, by wire, radio, visual or other electro-magnetic means;
(101) “time of supply of goods” shall have the meaning as assigned to it in section
12;
Page 23 of 190
(102) “time of supply of services” shall have the meaning as assigned to it in section
13;
(103) “to cultivate personally” means to carry on any agricultural operation on one's
own account-
(a)
(b)
by one's own labour, or
by the labour of one's family, or
(c)
by servants on wages payable in cash or kind (but not in crop share) or by hired
labour under one's personal supervision or the personal supervision of any member of
one's family;
Explanation 1. – A widow
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
incorporated or otherwise legally constituted;
(106) “valid return” shall have the meaning assigned to it under sub-section (3) of
section 27.
(107) “works contract” means an agreement for carrying out for cash, deferred
payment or other valuable consideration, building, construction, fabrication, erection,
installation, fitting out, improvement, modification, repair, renovation or commissioning
of any moveable or immovable property;
(108) “year” means the financial year; and
(109) “zero-rated supply” means a supply of any goods and/or services on which no
tax is payable but credit of the input tax related to that supply is admissible;
Explanation.- Exports shall be treated as zero-rated supply.
3.
Meaning and scope of supply
(1) Supply includes
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange,
license, rental, lease or disposal made or agreed to be made for a consideration by a
person in the course or furtherance o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
supply of services.
(4)
Notwithstanding anything contained in sub-section (1), the supply of any branded
service by an aggregator, as defined in section 43B, under a brand name or trade name
owned by him shall be deemed to be a supply of the said service by the said aggregator.
CHAPTER II
Page 25 of 190
4.
(1)
ADMINISTRATION
Classes of officers under the Central Goods and Services Tax Act
There shall be the following classes of officers under the Central Goods and
Services Tax Act, namely;
(a)
Principal Chief Commissioners of CGST or
Principal Directors General of CGST,
(b)
Chief Commissioners of CGST or
Directors General of CGST,
(c)
Principal Commissioners of CGST or
Principal Additional Directors General of CGST,
(d)
Commissioners of CGST or
Additional Directors General of CGST,
(e)
First Appellate Authority,
(f) Additional Commissioners of CGST or
Additional Directors of CGST,
(g)
Joint Commissioners of CGST or
Joint Directors of CGST,
(h)
Deputy C
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the Central Goods and Services Tax Act
(1) The Board may appoint such persons as it may think fit to be officers under the
Central Goods and Services Tax Act.
(2) Without prejudice to the provisions of sub-section (1), the Board may authorize a
Principal Chief Commissioner/Chief Commissioner of Central Goods and Services Tax or a
Principal Commissioner/Commissioner of Central Goods and Services Tax or an
Additional/Joint or Deputy/Assistant Commissioner of Central Goods and Service Tax to
appoint officers of Central Goods and Services Tax below the rank of Assistant
Commissioner of Central Goods and Services Tax.
(Note: State laws may have similar provision)
6.
(1)
Powers of officers under the Central Goods and Services Tax Act
Subject to such conditions and limitations as the Board may impose, an officer of
the Central Goods and Services Tax may exercise the powers and discharge the duties
conferred or imposed on him under this Act.
(2) An officer of Central Goods and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
his Act and collected in such manner as may be prescribed.
(2) The CGST/SGST shall be paid by every taxable person in accordance with the
provisions of this Act.
(3) Notwithstanding anything contained in sub-section (2), the Central or a State
Government may, on the recommendation of the Council, by notification, specify
categories of supply of goods and/or services the tax on which is payable on reverse
charge basis and the tax thereon shall be paid by the person receiving such goods
and/or services and all the provisions of this Act shall apply to such person as if he is the
person liable for paying the tax in relation to such goods and/or services.
8.
(1)
Composition Levy
Notwithstanding anything to the contrary contained in the Act but subject to sub-
section (3) of section 7, on the recommendation of the Council, the proper officer of the
Central or a State Government may, subject to such conditions and restrictions as may
be prescribed, permit a registered taxable
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
may be
payable by him under other provisions of this Act, be liable to a penalty equivalent to the
amount of tax payable as aforesaid:
Provided that no penalty shall be imposed without giving a notice to show cause and
without affording a reasonable opportunity of being heard to the person proceeded
against.
9.
Taxable person
Page 28 of 190
(1) Taxable Person means a person who carries on any business at any place in India
/State of and who is registered or required to be registered under Schedule III of
this Act:
Provided that an agriculturist shall not be considered as a taxable person.
Provided further that a person who is required to be registered under paragraph 1 of
Schedule III of this Act shall not be considered as a taxable person until his aggregate
turnover in a financial year exceeds [Rs ten lakh]
Provided further that a person who is required to be registered under paragraph 1 of
Schedule III of this Act shall not be considered as a taxable person until hi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
, liable to pay tax under sub-section (3) of section 7, receiving services of
value not exceeding
I rupees in a year for personal use, other than for use in the
course or furtherance of his business.
10.
Power to grant exemption from tax
(1) If the Central or a State Government is satisfied that it is necessary in the public
interest so to do, it may, on the recommendation of the Council, by notification, exempt
generally either absolutely or subject to such conditions as may be specified in the
notification, goods and/or services of any specified description from the whole or any
part of the tax leviable thereon.
Explanation.- Where an exemption under sub-section (1) in respect of any goods and/or
services from the whole of the tax leviable thereon has been granted absolutely, the
taxable person providing such goods and/or services shall not pay the tax on such goods
and/or services.
(2) If the Central or a State Government is satisfied that it is necessary in the publi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rovided, come into force on the date of its issue by the Central or
a State Government for publication in the Official Gazette; and
(b) be made available on the official website of the department of the Central or a State
Government.
11.
(1)
Remission of tax on supplies found deficient in quantity
The Central or a State Government may, by rules made under this sub-section,
provide for remission of tax on such supplies which are found to be deficient in quantity
due to any natural causes.
(2)
Any rules made under sub-section (1) may, having regard to the nature of the
supply, fix the limit or limits of percentage beyond which no such remission shall be
allowed.
CHAPTER IV
Page 30 of 190
TIME AND VALUE OF SUPPLY
12. Time of supply of goods
(1) The liability to pay CGST / SGST on the goods shall arise at the time of supply as
determined in terms of the provisions of this section.
(2) The time of supply of goods shall be the earliest of the following dates, namely,-
(a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
recipient.
Explanation 3.- For the purposes of clauses (b) and (c) of sub-section (2), 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.
Explanation 4.- For the purpose of clause (c) of sub-section (2), “the date on which the
supplier receives the payment” shall be the date on which the payment is entered in his
books of accounts or the date on which the payment is credited to his bank account,
whichever is earlier.
(3) In case of continuous supply of goods, where successive statements of accounts or
successive payments are involved, the time of supply shall be the date of expiry of the
period to which such successive statements of accounts or successive payments relate.
If there are no successive statements of account, the date of issue of the invoice (or any
other document) or the date of receipt of payment, whichever is earlier, shall be the
time of supply.
(4) For the purposes of sub section (3
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ce, the time of supply shall be
at the time when it becomes known that the supply has taken place or six months from
the date of removal, whichever is earlier.
(7) In case it is not possible to determine the time of supply under the provisions of sub-
section (2), (3), (5) or (6), the time of supply shall
(a) in a case where a periodical return has to be filed, be the date on which such return
is to be filed, or
(b) in any other case, be the date on which the CGST/SGST is paid.
13.
Time of supply of services
(1) The liability to pay CGST/SGST on services shall arise at the time of supply, as
determined in terms of the provisions of this section.
(2) The time of supply of services shall be:-
(a) the date of issue of invoice or the date of receipt of payment, whichever is earlier, if
the invoice is issued within the prescribed period; or
(b) the date of completion of the provision of service or the date of receipt of payment,
whichever is earlier, if the invoice is not is
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
vice;
(b) where the due date of payment is not ascertainable from the contract, each such
time when the supplier of service receives the payment, or issues an invoice, whichever
is earlier;
Page 32 of 190
(c) where the payment is linked to the completion of an event, the time of completion of
that event;
(4) For the purposes of sub section (3) above, the Central or a State Government may
on the recommendation of the Council, specify, by notification, the supply of services
that shall be treated as continuous supply of services;
(5) 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 earliest of the following dates, namely-
(a) the date of receipt of services, or
(b) the date on which the payment is made, or
(c) the date of receipt of invoice, or
(d) the date of debit in the books of accounts.
Explanation. For the purpose of clause (b) of sub-section (5), “the date on which the
payment is made
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
a) in case the taxable service has been provided before the change in effective rate of
tax
–
(i) where the invoice for the same has been issued and the payment is also received
after the change in effective rate of tax, the time of supply shall be the date of receipt of
payment or the date of issue of invoice, whichever is earlier; or
(ii) where the invoice has been issued prior to change in effective rate of tax but the
payment is received after the change in effective rate of tax, the time of supply shall be
the date of issue of invoice; or
(iii) where the payment is received before the change in effective rate of tax, but the
invoice for the same has been issued after the change in effective rate of tax, the time of
supply shall be the date of receipt of payment;
(b) in case the taxable service has been provided after the change in effective rate of tax
(i)
where the payment is received after the change in effective rate of tax but the
invoice has been issued prior t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hange in the effective rate of tax.
15.
(1)
Value of taxable supply
The value of a supply of goods and/or services shall be the transaction value, that
is the price actually paid or payable for the said supply of goods and/or services where
the supplier and the recipient of the supply are not related and the price is the sole
consideration for the supply.
(2) The transaction value under sub-section(1) shall include:
(a) any amount that the supplier is liable to pay in relation to such supply but which has
been incurred by the recipient of the supply and not included in the price actually paid or
payable for the goods and/or services;
(b)
the value, apportioned as appropriate, of such goods and/or services as are
supplied directly or indirectly by the recipient of the supply free of charge or at reduced
cost for use in connection with the supply of goods and/or services being valued, to the
extent that such value has not been included in the price actually paid or payabl
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
that may be allowed after the supply has been effected:
Page 34 of 190
Provided that such post-supply discount which is established as per the
agreement and is known at or before the time of supply and specifically linked to
relevant invoices shall not be included in the transaction value.
(3) The transaction value under sub-section (1) shall not include any discount
allowed before or at the time of supply provided such discount is allowed in the course of
normal trade practice and has been duly recorded in the invoice issued in respect of the
supply.
(4) The value of the supply of goods and/or services in the following situations which
cannot be valued under sub-section (1), shall be determined in such manner as may be
prescribed in the rules.
the consideration, whether paid or payable, is not money, wholly or partly;
(i)
(ii)
the supplier and the recipient of the supply are related;
(iii)
there is reason to doubt the truth or accuracy of the transaction value declar
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of inputs held in stock and inputs contained in semi-
finished or finished goods held in stock on the day immediately preceding the date from
which he becomes liable to pay tax under the provisions of this Act.
(2A) A person, who takes registration under sub-section (3) of section 19, shall, subject
to such conditions and restrictions as may be prescribed, be entitled to take credit of
input tax in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the day immediately preceding the date of registration.
(3) Where any registered taxable person ceases to pay tax under section 8, he shall,
subject to such conditions and restrictions as may be prescribed, be entitled to take
credit of input tax in respect of inputs held in stock and inputs contained in semi-finished
or finished goods held in stock on the day immediately preceding the date from which he
becomes liable to pay tax under section 7.
(3A) A taxable person shall no
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
x as is attributable to the taxable supplies including
zero-rated supplies.
(7) The Central or a State Government may, by notification issued in this behalf,
prescribe the manner in which the credit referred to in sub-sections (5) and (6) above
may be attributed.
(8) Where there is a change in the constitution of a registered taxable person on
account of sale, merger, demerger, amalgamation, lease or transfer of the business with
the specific provision for transfer of liabilities, the said registered taxable person shall be
Page 36 of 190
allowed to transfer the input tax credit that remains unutilized in its books of accounts to
such sold, merged, demerged, amalgamated, leased or transferred business in the
manner prescribed.
(9) Notwithstanding anything contained in sub-section (1), (2), (2A) or (3) input tax
credit shall not be available in respect of the following:
(a) motor vehicles, except when they are supplied in the usual course of business or are
used for provi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and machinery;
(e) goods and/or services on which tax has been paid under section 8; and
(f) goods and/or services used for private or personal consumption, to the extent they
are so consumed.
(10) Where the registered taxable person has claimed depreciation on the tax
component of the cost of capital goods under the provisions of the Income Tax Act,
1961, the input tax credit shall not be allowed on the said tax component.
(11) Notwithstanding anything contained in this section, but subject to the provisions of
section 28, no registered taxable person shall be entitled to the credit of any input tax in
respect of any supply of goods and/or services to him unless
(a) he is in possession of a tax invoice, debit note, supplementary invoice or such other
taxpaying document as may be prescribed, issued by a supplier registered under this Act
or the IGST Act;
(b) he has received the goods and/or services;
(c) the tax charged in respect of such supply has been actually paid to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e exempt absolutely under section 10, he shall pay an
amount, by way of debit in the electronic credit or cash ledger, equivalent to the credit
of input tax in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the day immediately preceding the date of such switch
over 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.
(13) The amount payable under sub-section (12) shall be calculated in accordance with
generally accepted accounting principles in such manner as may be prescribed.
(14) In case of supply of capital goods on which input tax credit has been taken, the
registered taxable person shall pay an amount equal to the input tax credit taken on the
said capital goods reduced by the percentage points as may be specified in this behalf or
the tax on the transaction value of such capita
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
principal” shall be entitled to take credit of input tax on inputs even if
the inputs are directly sent to a job worker for job-work without their being first brought
to his place of business, and in such a case, the period of one hundred and eighty days
shall be counted from the date of receipt of the inputs by the job worker.
(2) The “principal” shall, subject to such conditions and restrictions as may be
prescribed, be entitled to take credit of input tax on capital goods sent to a job-worker
Page 38 of 190
for job-work if the said capital goods, after completion of job-work, are received back by
him within two years of their being sent out:
Provided that 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 their
being first brought to his place of business, and in such a case, the period of two years
shall be counted from the date of receipt of the capital go
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nt of credit are located in different
States.
(CGST ACT)
(1) The Input Service Distributor may distribute, in such manner as may be prescribed,
the credit of SGST as IGST, by way of issue of a prescribed document containing, inter
alia, the amount of input tax credit being distributed or being reduced thereafter, where
the Distributor and the recipient of credit are located in different States.
(SGST Act)
(2) The Input Service Distributor may distribute, in such manner as may be prescribed,
the credit of CGST and IGST as CGST, by way of issue of a prescribed document
containing, inter alia, the amount of input tax credit being distributed or being reduced
thereafter, where the Distributor and the recipient of credit, being a business vertical,
are located in the same State.
(CGST Act)
(2) The Input Service Distributor may distribute, in such manner as may be prescribed,
the credit of SGST and IGST as SGST, by way of issue of a prescribed document
containing, inter alia,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
f the turnover in a State of such
supplier, during the relevant period, to the aggregate of the turnover of all such
suppliers to whom such input service is attributable and which are operational in the
current year, during the said relevant period.
18. Manner of recovery of credit distributed in excess
(1) Where the credit distributed by the Input Service Distributor is in excess of the credit
available for distribution by him, the excess credit so distributed shall be recovered from
such distributor along with interest, and the provisions of section 51 shall apply mutatis
mutandis for effecting such recovery.
(2) Where the Input Service Distributor distributes the credit in contravention of the
provisions contained in section 17 resulting in excess distribution of credit to one or
more suppliers, the excess credit so distributed shall be recovered from such supplier(s)
along with interest, and the provisions of section 51 shall apply mutatis mutandis for
effecting such r
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rson, other than an Input Service Distributor, is registered under
an earlier law, it shall not be necessary for him to apply for fresh registration under this
section and he shall follow the procedure as may be prescribed in this behalf.
(2)
Notwithstanding anything contained in sub-section (1), a person having multiple
business verticals in a State may obtain 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 Schedule III, may get himself
registered voluntarily, and all provisions of this Act, as are applicable to a registered
taxable person, shall apply to such person.
(4) Every person shall have a Permanent Account Number issued under the Income
Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under sub-
section (1), (2) or (3).
(4A) Notwithstanding anything contained in sub-section (4), a non-resident taxable
person may be granted regi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
The registration or the Unique Identity Number, shall be granted or, as the case
may be, rejected after due verification in the manner and within such period as may be
prescribed.
(8) The proper officer shall not reject the application for registration or the Unique
Identity Number without giving a notice to show cause and without giving the person a
reasonable opportunity of being heard.
(8A) A certificate of registration shall be issued in the prescribed form, with effective
date as may be prescribed.
Page 41 of 190
(9) A registration or an Unique Identity Number shall be deemed to have been granted
after the period prescribed under sub-section (7), if no deficiency has been
communicated to the applicant by the proper officer within that period.
(10) Notwithstanding anything contained in sub-section (7), any rejection of application
for registration or the Unique Identity Number under the CGST Act / SGST Act shall be
deemed to be a rejection of application for registrat
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ys by a further period not exceeding ninety days.
(2) Notwithstanding anything to the contrary contained in this Act, 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 19, make an advance deposit of tax in
an amount equivalent to the estimated tax liability of such person for the period for
which the registration is sought:
Provided that where any extension of time is sought under sub-section (1), such taxable
person shall deposit an additional amount of tax equivalent to the estimated tax liability
of such person for the period for which the extension is sought.
(3) The amount deposited under sub-section (2) shall be credited to the electronic cash
ledger of such person and shall be utilized in the manner provided under section 35.
20. Amendment of registration
(1) Every registered taxable person shall inform the proper officer of any changes in
the information furnish
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
an application filed, in the
prescribed manner, by the registered taxable person or by his legal heirs, in case of
death of such person, cancel the registration, in such manner and within such period as
may be prescribed, having regard to the circumstances where, –
(a) the business has been discontinued, transferred fully for any reason including
death of the proprietor, amalgamated with other legal entity, demerged or otherwise
disposed of; or
(b)
there is any change in the constitution of the business; or
(c) the taxable person, other than the person registered under sub-section (3) of
section 19, is no longer liable to be registered under Schedule III.
(2) The proper officer may, in the manner as may be prescribed, cancel the
registration of taxable person from such date, including any anterior date, as he may
deem fit, where, –
(a)
the registered taxable person has contravened such provisions of the Act or the
rules made thereunder as may be prescribed; or
(b) a p
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
whether or not such tax and other dues are determined before or
after the date of cancellation.
(6)
The cancellation of registration under the CGST Act/SGST Act shall be deemed to
be a cancellation of registration under the SGST Act/CGST Act.
Page 43 of 190
(7) Every registered taxable person whose registration is cancelled shall pay an amount,
by way of debit in the electronic credit or cash ledger, equivalent to the credit of input
tax in respect of inputs held in stock and inputs contained in semi-finished or finished
goods held in stock on the day immediately preceding the date of such cancellation or
the output tax payable on such goods, whichever is higher, calculated in such manner as
may be prescribed:
Provided that in case of capital goods, the taxable person shall pay an amount equal to
the input tax credit taken on the said capital goods reduced by the percentage points as
may be prescribed in this behalf or the tax on the transaction value of such capital good
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
a notice to show cause and without giving the person a
reasonable opportunity of being heard.
(4) Revocation of cancellation of registration under the CGST Act / SGST Act shall be
deemed to be a revocation of cancellation of registration under the SGST Act / CGST Act.
Page 44 of 190
23. Tax invoice
CHAPTER- VII
TAX INVOICE, CREDIT AND DEBIT NOTES
A registered taxable person supplying,-
(i)
taxable goods shall issue, at the time of supply, a tax invoice showing the
description, quantity and value of goods, the tax charged thereon and such other
particulars as may be prescribed;
(ii)
taxable services shall issue a tax invoice, within the prescribed time, showing the
description, the tax charged thereon and such other particulars as may be prescribed:
Provided that a registered taxable person may issue a revised invoice against the invoice
already issued during the period starting from the effective date of registration till the
date of issuance of certificate of registr
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
. Credit and debit notes
(1) Where a tax invoice has been issued for supply of any goods and/or services and the
taxable value and/or tax charged in that tax invoice is found to exceed the taxable value
and/or tax payable in respect of such supply, the taxable person, who has supplied such
goods and/or services, may issue to the recipient a credit note containing such
particulars as may be prescribed on or before the thirtieth day of September following
the end of the financial year in which such supply was made, or the date of filing of the
relevant annual return, whichever is earlier:
Provided that no credit note shall be issued by the said person if the incidence of tax and
interest on such supply has been passed by him to any other person.
(2) Where a tax invoice has been issued for supply of any goods and/or services and the
taxable value and/or tax charged in that tax invoice is found to be less than the taxable
value and/or tax payable in respect of such supply, the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
25. Furnishing details of outward supplies
(1) Every registered taxable person, other than an input service distributor and a person
paying tax under the provisions of section 8 or section 37, shall furnish, electronically, in
such form and manner as may be prescribed, the details of outward supplies of goods
and/or services 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 the time and in the manner as may be prescribed:
Provided that the Board / Commissioner may, for valid and sufficient reasons, by
notification, extend the time limit for furnishing such details:
Provided further that any extension of time limit by the Board/Commissioner of State
Goods and Services Tax shall be deemed to be approved by the Commissioner of State
Goods and Services Tax/Board:
Explanation. For the purposes of this section, the expression “details of out
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
wing the end of the financial year to which such details pertain,
or filing of the relevant annual return, whichever is earlier.
26. Furnishing details of inward supplies
(1)
Every registered taxable person, other than an input service distributor and a
person paying tax under the provisions of section 8 or section 37, shall verify, validate,
modify or, if required, delete the details relating to outward supplies and credit or debit
notes communicated under sub-section (1) of section 25 to prepare the details of his
inward supplies and credit or debit notes and may include therein, the details of inward
supplies and credit or debit notes received by him in respect of such supplies that have
not been declared by the supplier under sub-section (1) of section 25.
(2) Every registered taxable person shall furnish, electronically, the details of inward
supplies of taxable goods and/or services, including inward supplies of services on which
the tax is payable on reverse charge
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rescribed, and shall pay the tax and interest, if any, in case there is a short payment of
tax on account of such error or omission, in the return to be furnished for such tax
period:
Provided that no rectification of error or omission in respect of the details furnished
under sub-section (2) shall be allowed after filing of the return under section 27 for the
month of September following the end of the financial year to which such details pertain,
or filing of the relevant annual return, whichever is earlier.
27. Returns
(1) Every registered taxable person shall, for every calendar month or part thereof,
furnish, in such form and in such manner as may be prescribed, a return, electronically,
of inward and outward supplies of goods and/or services, input tax credit availed, tax
payable, tax paid and other particulars as may be prescribed within twenty days after
the end of such month:
Provided that a registered taxable person paying tax under the provisions of section 8 of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
any supplies of goods and/or services have been
effected during such tax period.
(5) Every registered taxable person required to deduct tax at source shall furnish a
return, electronically, in such form and in such manner as may be prescribed, for the
Page 48 of 190
month in which such deductions have been made along with the payment of tax so
deducted, within ten days after the end of such month.
(6) Every Input Service Distributor shall, for every calendar month or part thereof,
furnish a return, electronically, in such form and in such manner as may be prescribed,
within thirteen days after the end of such month.
(7) Subject to the provisions of sections 25 and 26, if any taxable person after
furnishing a return under sub-section (1) 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 particulars in the return to
be file
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d that a registered taxable person paying tax under the provisions of section 8
shall furnish the first return for the period starting from the date on which he becomes a
registered taxable person till the end of the quarter in which the registration has been
granted.
(2)
Provisions of section 25, 26 and 27, other than the provision pertaining to tax
period, shall apply mutatis mutandis to the said person furnishing return under sub-
section (1).
28. Claim of input tax credit and provisional acceptance thereof
Every taxable person shall, subject to such conditions and restrictions as may be
prescribed in this behalf, be entitled to take credit of input tax, as self-assessed, in his
return and such amount shall be credited, on a provisional basis, to his electronic credit
ledger to be maintained in the manner as may be prescribed:
Provided that a taxable person who has not furnished a valid return under section 27 of
the Act shall not be allowed to utilize such credit till
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the provisions of section 16, be finally
accepted and such acceptance shall be communicated, in the 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 the manner as may be prescribed.
(4) The duplication of claims of input tax credit shall be communicated to the recipient in
the 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 supplier in his valid return for the month in which
discrepancy is communicated shall be added to the output tax liability of the recipient, in
the manner as may be prescribed, in his return for the month succeeding the month in
which the discrepancy is communicated
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n (8) shall be refunded to the recipient by crediting the
Page 50 of 190
amount in the corresponding head of his electronic cash ledger in the manner as may be
prescribed:
Provided that the amount of interest to be credited in any case shall not exceed the
amount of interest paid by the supplier.
(10) The amount reduced from the output tax liability in contravention of the provisions
of sub-section (7) shall be added to the output tax liability of the recipient in his return
for the month in which such contravention takes place and such recipient shall be liable
to pay interest on the amount so added at the rate specified in sub-section (3) of section
36.
29A. Matching, reversal and reclaim of reduction in output tax liability
(1)
The details of every credit note relating to outward supply furnished by a taxable
person (hereinafter referred to in this section as the 'supplier') for a tax period shall, in
the manner and within the time prescribed, be matched –
(a) with t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
cated
to the supplier in the 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
the 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 is communicated.
Page 51 of 190
(7) The supplier shall be eligible to reduce, from his output tax liability, the amount
added under sub-section (5) if the recipient declares the details of the credit note in his
valid return within the time specified in sub-section (7) of section 27.
(8) A supplier i
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
h 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
36.
30. Annual return
(1) Every registered taxable person, other than an input service distributor, a deductor
under section 37, a casual taxable person and a non-resident taxable person, shall
furnish an annual return for every financial year electronically in such form and in such
manner as may be prescribed on or before the thirty first day of December following the
end of such financial year.
(2) Every taxable person who is required to get his accounts audited under sub-
section (4) of section 42 shall furnish, electronically, the annual return along with the
audited copy of the annual accounts and a reconciliation statement, reconciling the value
of supplies declared in the return furnished for the year with the audited annual financial
statement, and such other particulars as may be prescribed.
31. Final return
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
urn required under
section 30 by the due date shall be liable to a late fee of rupees one hundred for every
day during which such failure continues subject to a maximum of an amount calculated
at a quarter percent of his aggregate turnover.
34. Tax Return Preparers
(1) The appropriate Government may, by rules, prescribe the manner of approval of
Tax Return Preparers, their eligibility conditions, duties and obligations, manner of
removal and such other conditions as may be relevant for their functioning as a Tax
Return Preparer.
(2) A registered taxable person may, in the manner prescribed, authorise an
approved Tax Return Preparer to furnish the details of outward supplies under section
25, the details of inward supplies under section 26 and the return under section 27, 30
or section 31, as the case may be, and such other tasks as may be prescribed.
(3)
Notwithstanding anything contained in sub-section (2), the responsibility for
correctness of any particulars furnished
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e maintained in the manner as may be
prescribed.
(3) The amount available in the electronic cash ledger may be used for making any
payment towards tax, interest, penalty, fees or any other amount payable under the
provisions of the 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 tax payable under the provisions of the Act or the rules made
thereunder in such manner and subject to such conditions and within such time as may
be prescribed.
(5)(a) The amount of input tax credit on account of IGST available in the electronic
credit ledger shall first be utilized towards payment of IGST and the amount remaining,
if any, may be utilized towards the payment of CGST and SGST, in that order.
(b) The amount of input tax credit on account of CGST available in the electronic credit
ledger shall first be utilized
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
his Act shall be recorded and maintained
in an electronic register 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:
(a)
(b)
(c)
self-assessed tax, and other dues related to returns of previous tax periods;
self-assessed tax, and other dues related to return of current tax period;
any other amount payable under the Act or the rules made thereunder including
the demand determined under section 51.
(9) Every person who has paid the tax on goods and/or services under this Act shall,
unless the contrary is proved by him, be deemed to have passed on the full incidence of
such tax to the recipient of such goods and/or services.
Explanation. For the purposes of this section, the expression “tax dues” means the tax
payable under this Act and does not include interest, fee and penalty.
36. Interest on delayed payment of tax
(1) Every person liable to pay tax in accordance wi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
, or
Local authority, or
Governmental agencies, or
such persons or category of persons as may be notified, by the Central or a State
Government on the recommendations of the Council,
[hereinafter referred to in this section as “the deductor”], to deduct tax at the rate of
one percent from the payment made or credited to the supplier [hereinafter referred to
in this section as “the deductee”] of taxable goods and/or services, notified by the
Central or a State Government on the recommendations of the Council, where the total
value of such supply, under a contract, exceeds rupees ten lakh.
Explanation. – For the purpose of deduction of tax specified above, the value of supply
shall be taken as the amount excluding the tax indicated in the invoice.
Page 55 of 190
(2)
The amount deducted as tax under this section shall be paid to the credit of the
appropriate Government by the deductor within ten days after the end of the month in
which such deduction is made, in the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ay to the credit of the appropriate Government the
amount deducted as tax under sub-section (1), he shall be liable to pay interest in
accordance with the provisions of section 36, in addition to the amount of tax deducted.
(7) Determination of the amount in default under this section shall be made in the
manner specified in section 51.
(8) Refund to the deductor or the deductee, as the case may be, arising on account
of excess or erroneous deduction shall be dealt with in accordance with the provisions of
section 38:
Provided that no refund to deductor shall be granted if the amount deducted has been
credited to the electronic cash ledger of the deductee.
CHAPTER-IXA
TRANSFER OF INPUT TAX CREDIT
Page 56 of 190
37A. Transfer of input tax credit
On utilization of input tax credit availed under the CGST Act for payment of tax
dues under the IGST Act as per sub-section (5) of section 35, the amount collected as
CGST shall stand reduced by an amount equal to the credit so u
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
relevant date in such
form and in such manner as may be prescribed:
Provided that the limitation of two years shall not apply where such tax or interest or the
amount referred to above has been paid under protest.
(2) Subject to the provisions of sub-section (8), a taxable person may claim refund of
any unutilized input tax credit at the end of any tax period:
Provided that no refund of unutilized input tax credit shall be allowed in cases other than
exports or in cases where the credit has accumulated on account of rate of tax on inputs
being higher than the rate of tax on outputs:
Provided further that no refund of unutilized input tax credit shall be allowed in cases
where the goods exported out of India are subjected to export duty.
(3) The application shall be accompanied by—
(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 s
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
proper officer may, in
the case of any claim for refund on account of export of goods and/or services made by
such category of registered taxable persons as may be notified in this behalf, refund
eighty percent of the total amount so claimed, excluding the amount of input tax credit
provisionally accepted, on a provisional basis, in the manner and subject to such
conditions, limitations and safeguards as may be prescribed and the remaining twenty
percent may be refunded after due verification of documents furnished by the applicant.
Page 58 of 190
(5) The proper officer shall issue the order under sub-section (4) within ninety days
from the date of receipt of application.
Explanation. The “application” for the purpose of this sub-section shall mean complete
application containing all information as may be prescribed.
(6) Notwithstanding anything contained in sub-section (4) or sub-section (4A), the
refundable amount shall, instead of being credited to the Fund, be paid to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s due
under the said sub-section to a registered taxable 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 proper
officer may-
(a) withhold payment of refund due until the said person has submitted the return or
paid the tax, interest or penalty, as the case may be;
(b) deduct from the refund due, any tax, interest or penalty which the taxable person is
liable to pay but which remains unpaid.
Explanation. For the purposes of this sub-section the expression “specified date” shall
mean-
(a) the last date for filing an appeal under this Act, in a case where no appeal has been
filed
(b) thirty days after the last date for filing an appeal under this Act, in a case where an
appeal has been filed.
(9) Notwithstanding anything contained in sub-section (4) or sub-section (4A), where an
order giving rise to a refund is the sub
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
out
of India, or refund of tax on the supply of goods regarded as deemed exports, or refund
of unutilized input tax credit as provided under sub-section (2).
(B)
“relevant date” means
–
(a) in the case of goods exported out of India where a refund of tax paid is available in
respect of the goods themselves or, as the case may be, the inputs or input services
used in such goods, –
(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in
which such goods are loaded, leaves India, or
(ii) if the goods are exported by land, the date on which such goods pass the frontier, or
(iii) if the goods are exported by post, the date of despatch of goods by Post Office
concerned to a place outside India;
(b) in the case of supply of goods regarded as deemed exports where a refund of tax
paid is available in respect of the goods, the date on which the return relating to such
deemed exports is filed;
(c) in the case of goods returned for being remade,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ar in which such claim for refund arises; and
(g) 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.
39. Interest on delayed refunds
If any tax refundable under section 38 to any applicant is not refunded within
three months from the date of receipt of application under sub-section (1) of that
Page 60 of 190
section, interest at such rate as may be specified in the notification issued by the Central
or a State Government on the recommendation of the Council shall be payable in respect
of such refund from the date immediately after the expiry of the due date for sanction of
refund under section 38 till the date of refund of such tax.
Explanation.- Where any order of refund is made by an Appellate Authority, Tribunal or
any Court against an order of the proper officer under sub-section (4) or sub-section
(4A) of section 38, the order passed by the Appellate Authority, Trib
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and separate account and other relevant records in relation
to the Fund in such form as may be prescribed in consultation with the Comptroller and
Auditor-General of India.
Page 61 of 190
CHAPTER-XI
ACCOUNTS AND RECORDS
42. Accounts and other records
(1) Every registered person shall keep and maintain, at his principal place of business,
as mentioned in the certificate of registration, a true and correct account of production
or manufacture of goods, of inward or outward supply of goods and/or services, of stock
of goods, of input tax credit availed, of output tax payable and paid, and such other
particulars as may be prescribed in this behalf:
Provided that where more than one place of business is specified in the certificate of
registration, the accounts relating to each place of business shall be kept at such places
of business concerned:
Provided further that the registered person may keep and maintain such accounts and
other particulars in the electronic form in th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Every registered taxable person required to keep and maintain books of account
or other records under sub-section (1) of section 42 shall retain them until the expiry of
sixty months from the last date of filing of Annual Return for the year pertaining to such
accounts and records:
Provided that a taxable person, who is a party to an appeal or revision or any other
proceeding before any Appellate Authority or Tribunal or Court, whether filed by him or
by the department, shall retain the books of account and other records pertaining to the
subject matter of such appeal or revision or proceeding for a period of one year after
final disposal of such appeal or revision or proceeding, or for the period specified under
sub-section (1), whichever is later.
CHAPTER – XIA
JOB WORK
43A. Special procedure for removal of goods for certain purposes
Page 62 of 190
(1) The Commissioner may, by special order and subject to conditions as may be
specified by him, permit a registered taxab
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s engaged in the supply of such goods as may be notified in
this behalf.
(2) The responsibility for accountability of the goods including payment of tax
thereon shall lie with the “principal”.
43B. Definitions
CHAPTER – XIB
ELECTRONIC COMMERCE
Page 63 of 190
In this Chapter, unless the context otherwise requires, –
(a) ‘aggregator' means a person, who owns and manages an electronic platform, and
by means of the application and a communication device, enables a potential customer
to connect with the persons providing service of a particular kind under the brand name
or trade name of the said aggregator;
(b) brand name or trade name' means, a brand name or a trade name, whether
registered or not, that is to say, a name or a mark, such as an invented word or writing,
or a symbol, monogram, logo, label, signature, which is used for the purpose of
indicating, or so as to indicate a connection, in the course of trade, between a service
and some other person using the n
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the supply of any goods and/or services or in providing any information or
any other services incidental to or in connection there with but shall not include persons
engaged in supply of such goods and/or services on their own behalf.
43C. Collection of tax at source
(1)
Notwithstanding anything to the contrary contained in the Act or in any contract,
arrangement or memorandum of understanding, every electronic commerce operator
(hereinafter referred to in this section as the “operator”) shall, at the time of credit of
any amount to the account of the supplier of goods and/or services or at the time of
payment of any amount in cash or by any other mode, whichever is earlier, collect an
amount, out of the amount payable or paid to the supplier, representing consideration
towards the supply of goods and/or services made through it, calculated at such rate as
may be notified in this behalf by the Central/State Government on the recommendation
of the Council.
(2) The power t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ce with the provisions of this section and paid
to the credit of the appropriate Government shall be deemed to be a payment of tax on
behalf of the concerned supplier and the supplier shall claim credit, in his electronic cash
ledger, of the tax collected and reflected in the statement of the operator filed under
sub-section (4), in the manner prescribed.
(6)
The details of supplies and the amount collected under sub-section (1) during a
calendar month, and furnished by every operator under sub-section (4), shall, in the
manner and within the period prescribed, be matched with the corresponding details of
outward supplies furnished by the concerned supplier in his valid return for the same
calendar month or any preceding calendar month.
(7) Where the details of outward supply, on which the tax has been collected, as
declared by the operator under sub-section (4) do not match with the corresponding
details declared by the supplier under section 25, the discrepancy shall be
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s Act, require the operator to
furnish such details relating toۥ
(a) supplies of goods and/or services effected through such operator during any
period, or
(b) stock of goods held by the suppliers making supplies through such operator in
the godowns or warehouses, by whatever name called, managed by such
operators and declared as additional places of business by such suppliers –
as may be specified in the notice.
(11)
Every operator on whom a notice has been served under sub-section (10) shall
furnish the required information within five working days of the date of service of such
notice.
Page 65 of 190
(12) Any person who fails to furnish the information required by the notice served
under sub-section (10) shall, without prejudice to any action that is or may be taken
under section 66, be liable to a penalty which may extend to rupees twenty-five
thousand.
Explanation For the purposes of this section, the expression 'concerned supplier' shall
mean the supplier
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ch rate or on such
value as may be specified by him.
(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 in this behalf, and with such surety
or security as the proper officer may deem fit, binding the taxable person for payment of
the difference between the amount of tax as may be finally assessed and the amount of
tax provisionally assessed.
(3) The proper officer shall, within a period not exceeding six months from the date of
the communication of the order issued under sub-section (1), pass the final assessment
order after taking into account such information as may be required for finalizing the
assessment:
Provided that the period specified in this sub-section may, on sufficient cause being
shown and for reasons to be recorded in writing, be extended by the Joint/Additional
Commissioner for a further period not exceeding six months and by the Commissioner
for such further period as he ma
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
epancies noticed, if
any, after such scrutiny in such manner as may be prescribed and seek his explanation
thereto.
(3) In case the explanation is found acceptable, the taxable person shall be informed
accordingly and no further action shall be taken in this regard.
(4) 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 taxable person, after accepting the discrepancies, fails to take the
corrective measure within a reasonable period, the proper officer may initiate
appropriate action including those under section 49, 50 or section 60, or proceed to
determine the tax and other dues under sub-section (6) of section 51 A or under sub-
section (6) of section 51 B.
46. Assessment of non-filers of returns
(1) Where a registered taxable person fails to furnish the return required under section
27 or section 31, even after the service of a notice und
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 due date for filing of the annual return for the year to
which the tax not paid relates:
Provided that no such assessment order shall be passed without giving a notice to show
cause and without giving the person a reasonable opportunity of being heard.
48. Summary assessment in certain special cases
(1)
The proper officer may, on any evidence showing a tax liability of a person coming
to his notice, with the previous permission of [Additional/Joint Commissioner], proceed
to assess the tax liability of such person to protect the interest of revenue and issue an
assessment order, if he has sufficient grounds to believe that any delay in doing so will
adversely affect the interest of revenue:
Provided that where the taxable person to whom the liability pertains is not ascertainable
and such liability pertains to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
person shall be informed, by way of a notice, sufficiently in advance,
not less than fifteen working days, prior to the conduct of audit in the manner
prescribed.
(4) The audit under sub-section (1) shall be carried out in a transparent manner and
completed within a period of three months from the date of commencement of audit:
Provided that where the [Commissioner] is satisfied that audit in respect of such taxable
person cannot be completed within three months from the date of commencement of
audit, he may, for the reasons to be recorded in writing, extend the period by a further
period not exceeding six months.
Explanation. For the purposes of this sub-section, 'commencement of audit' shall mean
the date on which the records and other documents, called for by the tax authorities, are
made available by the taxable person or the actual institution of audit at the place of
business, whichever is later.
(5)
(i)
During the course of audit, the authorised officer may requi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
f the opinion that
the value has not been correctly declared or the credit availed is not within the normal
limits, he may,
with the prior approval of the [Commissioner], direct such taxable person
by notice in writing to get his records including books of account examined and audited
Page 70 of 190
by a chartered accountant or a cost accountant as may be nominated by the
[Commissioner] in this behalf.
(2) The chartered accountant or cost accountant so nominated shall, within the
period of ninety days, submit a report of such audit duly signed and certified by him to
the said [Deputy/Assistant Commissioner] mentioning therein such other particulars as
may be specified:
Provided that the proper officer may, on an application made to him in this behalf by the
taxable person or the chartered accountant or cost accountant or for any material and
sufficient reason, extend the said period by another ninety days.
(3)
The provision of sub-section (1) shall have effect notwithst
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tax not paid or short paid or erroneously refunded
A. Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilized for any reason other than fraud or any willful-
misstatement or suppression of facts
(1) Where any tax has not been paid or short paid or erroneously refunded, or where
input tax credit has been wrongly availed or utilized for any reason, other than the
reason of fraud or any willful-misstatement or suppression of facts to evade tax, the
proper officer shall serve notice on the person chargeable with tax which has not been so
paid or which has been so short paid or to whom the refund has erroneously been made,
or who has wrongly availed or utilized input tax credit, requiring him to show cause why
he should not pay the amount specified in the notice along with interest payable thereon
under section 36 and penalty leviable under the provisions of this Act or the rules made
thereunder.
(2) Where a notice has
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nt. The proper officer, on receipt of such
information, shall not serve any notice under sub-section (1) or, as the case may be, the
statement under sub-section (2), in respect of the tax so paid or any penalty leviable
under the provisions of this Act or the rules made there under.
(4)
Where the proper officer is of the opinion that the amount paid under sub-section
(3) falls short of the amount actually payable, he shall proceed to issue the notice as
provided for in sub-section (1) in respect of such amount which falls short of the amount
actually payable.
(5) Where any person chargeable with tax under sub-section (1) or under sub-section
(2) pays the said tax along with interest payable under section 36 within thirty days of
issue of show cause notice, no penalty shall be payable and all proceedings in respect of
the said tax shall be deemed to be concluded.
(6) The proper officer shall, after considering the representation, if any, made by person
chargeable with tax,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
serve notice
on the person chargeable with tax which has not been so paid or which has been so
short paid or to whom the refund has erroneously been made, or who has wrongly
availed or utilized input tax credit requiring him to show cause why he should not pay
the amount specified in the notice along with interest payable thereon under section 36
and a penalty equivalent to the tax specified in the notice.
(2) 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 utilized for such periods
other than those covered under sub-section (1), on the person chargeable with tax. The
service of such statement shall be deemed to be service of notice on such person under
the aforesaid sub-section (1), subject to the condition that the grounds relied upon for
such periods other than those covered under sub-section (
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ch amount which falls short of the amount
actually payable.
(5)
Where any person chargeable with tax under sub-section (1) or under sub-section
(2) pays the said tax along with interest payable under section 36 and a penalty
equivalent to twenty five per cent of such tax within thirty days of communication of the
notice, all proceedings in respect of the said tax shall be deemed to be concluded.
(6) 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.
Page 73 of 190
(7)
The proper officer shall issue the order under sub-section (6) within a period of
five years from the due date or the actual date, whichever is earlier, for filing of annual
return for the year to which the tax not paid or short paid or input tax credit wrongly
availed or utilized relates or, as the case may be, within five years from the date of
erroneous
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
iod of three years, deeming as if
the notice were issued under sub-section A (1) or A (2).
(3) An opportunity of personal hearing shall be granted where a request is received in
writing from the person chargeable with tax or penalty, or where any adverse decision is
contemplated against such person.
(4) The proper officer shall, if sufficient cause is shown by the person chargeable with
tax, grant time, from time to time, to the said person and adjourn the hearing for
reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a person
during the proceeding.
(5) The proper officer, in his order, shall set out the relevant facts and the basis of his
decision.
(6) The amount of tax, interest and penalty demanded in the order shall not be in excess
of the amount specified in the notice and no demand shall be confirmed on grounds
other than the grounds specified in the notice.
(7) Where the Appellate Authority or Tribunal or
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
decision of the First Appellate Authority and the date of decision of the Appellate Tribunal
or the date of decision of the Appellate Tribunal and the date of the decision of the High
Court or as the case may be, 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 referred to
in sub-section A (7) or sub-section B (7), as the case may be, where proceedings are
initiated by way of issue of a show cause notice under this section.
D (1) The provisions of sub-section A, B, C above shall apply, mutatis mutandis, to the
recovery of interest where interest payable has not been paid or part paid or erroneously
refunded.
52. Tax collected but not deposited with the Central or a State Government
(1)
Notwithstanding anything to the contrary contained in any order or direction of
any Appellate Authority or Tribunal or Court or in any other provision of this Act or the
rules made thereunder or any other
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the notice is served under sub-section (2), determine the amount due
from such person and thereupon such person shall pay the amount so determined.
(4) The person referred to in sub-section (1) shall in addition to paying the amount
referred to in sub-section (1) or (3), as the case may be, also be liable to pay interest
thereon at the rate specified under section 36 from the date such amount was collected
by him to the date such amount is paid by him to the credit of the Central or a State
Government.
(5) An opportunity for personal hearing shall be granted where a request is received
in writing 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 notice.
(7) Where the issuance of order is stayed by an order of the Court or Tribunal, the
period of such stay shall be excluded in computing the period of one year.
Page 75 of 190
(8) The proper officer, in his order, shall set o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r-state
supply, shall, upon payment of IGST, be allowed to take the amount of CGST /SGST (in
SGST Act) so paid as refund subject to the provisions of section 38 and subject to such
other conditions as may be prescribed.
54. Recovery of tax
(1)
(CGST Act)
Where any amount payable by a person to the credit of the Central or a State
Government under any of the provisions of this Act or of the rules made thereunder is
not paid, the proper officer shall proceed to recover the amount by one or more of the
modes mentioned below: –
(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 control of the proper officer or
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ore payment is made, notwithstanding any rule,
practice or requirement to the contrary;
Page 76 of 190
(iii) in case the person to whom a notice under this section has been issued, fails to
make the payment in pursuance thereof to the Central or a State 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 or from time to
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 appropriate Government shall be
deemed to constitute a good and sufficient discharge of the liability of such person to the
person in default to th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he
appropriate Government any such money or part thereof, as the case may be.
(d) the proper officer may, on an authorisation by the competent authority and in
accordance with the rules 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 and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s of this Act or the rules made
thereunder and which remains unpaid, the proper officer of SGST, during the course of
recovery of SGST arrears, may recover the amount from the said person as if it were an
arrear of SGST and credit the amount so recovered to the account of the Central
Government.
(CGST ACT)
(3) Where any amount of tax, interest or penalty is payable by a person to the credit
of the State Government under any of the provisions of this Act or the rules made
thereunder and which remains unpaid, the proper officer of CGST, during the course of
recovery of CGST arrears, may recover the amount from the said person as if it were an
arrear of CGST and credit the amount so recovered to the account of the State
Government.
(SGST ACT)
55. Payment of tax and other amount in installments.
On an application filed by a taxable person, the [Commissioner/Chief Commissioner]
may, for reasons to be recorded in writing, extend the time for payment or allow
payment of any am
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
espect of any tax or any other sum
payable by the said person:
Provided that, such charge or transfer shall not be void if it is made for adequate
consideration and without notice of the pendency of such proceeding under this Act or,
as the case may be, without notice of such tax or other sum payable by the said person,
or with the previous permission of the proper officer.
57. Tax to be first charge on property
Notwithstanding anything to the contrary contained in any law for the time being in
force, any amount payable by a taxable person or any other person on account of tax,
Page 78 of 190
interest or penalty which he is liable to pay to the Central or a State Government shall
be a first charge on the property of such taxable person, or as the case may be, such
person.
58. Provisional attachment to protect revenue in certain cases
(1) Where during the pendency of any proceedings under section 46, section 47,
section 48 or section 51, the Commissioner is of the opinion
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
such Government dues are
enhanced and any recovery proceeding in relation to such Government dues as are
covered by the notice of demand served upon him before the disposal of such
appeal, revision application or proceeding 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
proceeding –
(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 proceeding is pending;
(iii) Any recovery proceedings initiated on the basis of the demand served upon
him prior to the disposal of such appeal, revision application or other
proceeding may be continued in relation to the amount so reduced from the
stage at which such proceedings stood
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
erson or the persons engaged in the business of transporting
goods or the owner or the operator of warehouse or godown or any other place.
(2) Where the CGST/SGST officer, not below the rank of Joint Commissioner, either
pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to
believe that any goods liable to confiscation or any documents or books or things, which
in his opinion shall be useful for or relevant to any proceedings under this Act, are
secreted in any place, he may authorize in writing any other CGST/SGST officer to
search and seize or may himself search and seize such goods, documents or books or
things:
Provided that the goods, 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 proceeding under this Act.
(3)
The officer authorised under sub-section (2) shall have the power to seal or break
open the door of any premises or t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e goods with the passage
of time, constraints of storage space for the goods or any other relevant considerations,
Page 80 of 190
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
the Central or a State Government may prescribe.
(7) Where any goods, being goods specified under sub-section (6), have been seized by
a proper officer under sub-section (2), he shall prepare an inventory of such goods in the
manner as may be prescribed in this behalf.
(8) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to
search and seizure, shall, so far as may be, apply to search and seizure under this
section subject to the modification that sub-section (5) of section 165 of the said Code
shall have effect as if for the word “Magistrate”, wherever it occurs, the words [Principal
Commissioner/Commissioner of CGST/Commissioner of SG
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
such person of the grounds of arrest and produce him before
a magistrate within twenty four hours.
(3) In the case of a non-cognizable and bailable offence, the Deputy Commissioner or
the Assistant Commissioner of CGST/SGST, as the case may be, 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 has, and is subject to,
under section 436 of the Code of Criminal Procedure, 1973 (2 of 1974).
(4) All arrests made under this section shall be carried out in accordance with the
provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to arrest.
63. Power to summon persons to give evidence and produce documents
(1) Any [CGST/SGST officer], duly authorised by the competent authority in this
behalf, 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
228 of the Indian Penal Code, 1860 (45 of
1860).
64. Access to business premises
(1)
Any CGST/SGST officer authorized by the [Additional/Joint Commissioner of CGST
or SGST] shall have access to any business premises to inspect books of account,
documents, computers, computer programs, computer software (whether installed in a
computer or otherwise) and such other things as he may require and which may be
available at such premises, for the purposes of carrying out any audit, scrutiny,
verification and checks as may be necessary to safeguard the interest of revenue.
(2) Every person in charge of premises referred to in sub-section (1) shall, on
demand, make available to the officer authorized under sub-section (1) or the audit
party deputed by the Additional/Joint Commissioner of CGST or SGST or the Comptroller
and Auditor General of India or a cost accountant or chartered accountant nominated
under section 50, as the case may be,-
(i) the records as prepared or maintain
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and all officers of State/Central Government
engaged in the collection of land revenue, and all village officers are hereby empowered
and required to assist the CGST/SGST officers in the execution of this Act.
(2) The Central/State Government may, by notification, empower and require any
other class of officers to assist the CGST/SGST officers in the execution of this Act when
called upon to do so by the Commissioner of CGST/SGST.
66. Offences and penalties
CHAPTER – XVI
OFFENCES AND PENALTIES
Page 82 of 190
(1)
Where a taxable person who –
(i)
supplies any goods and/or services 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 and/or services 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 credit of the
appropriate Government beyond a period of three months from the date
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
violation of the provisions of this Act, or the rules made
thereunder;
(vii) fraudulently obtains refund of any CGST/SGST under this Act;
(viii) takes or distributes input tax credit in violation of section 17, or the rules made
thereunder;
(ix) falsifies or substitutes financial records or produces fake accounts and/or documents
or furnishes any false information or return with an intention to evade payment of tax
due under this Act;
(x) is liable to be registered under this Act but fails to obtain registration;
(xi) furnishes any false information with regard to particulars specified as mandatory,
either at the time of applying for registration, or subsequently;
(xii) obstructs or prevents any officer in discharge of his duties under the Act;
(xiii) transports any taxable goods without the cover of documents as may be specified
in this behalf;
(xiv) suppresses his turnover leading to evasion of tax under this Act;
Page 83 of 190
(xv) fails to keep, maintain or retain
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
arly, or the
refund claimed fraudulently, as the case may be, whichever is higher.
(2) Any registered taxable person who repeatedly makes short payment of tax shall
be liable to a penalty of rupees ten thousand or ten percent of the tax short paid,
whichever is higher.
Explanation. For the purposes of this sub-section, a taxable person shall be deemed to
have made short payments 'repeatedly', if there were short payments in three returns
during any six consecutive tax periods.
(3)
Any person who
(a)
aids or abets any of the offences specified in clauses (i) to (xx) of sub-section (1)
above;
(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 reason to believe are liable to confiscation under
this Act or the rules made thereunder;
(c)
receives or is in any way concerned with the supply of, or in any other manner
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
enalty in respect of any
omission or mistake in documentation which is easily rectifiable and obviously made
without fraudulent intent or gross negligence shall be greater than necessary to serve
merely as a warning.
Explanation. For the purpose of this sub-section
(a) a breach shall be considered a 'minor breach' if the amount of tax involved is less
than rupees five thousand.
(b) an omission or mistake in documentation shall be considered to be easily
rectifiable if the same is an error apparent on record.
(2)
The penalty imposed shall depend on the facts and circumstances of the case and
shall be commensurate with the degree and severity of the breach.
(3) No penalty shall be imposed on any taxable person without giving a notice to
show cause and without giving the person a reasonable opportunity of being heard.
(4) The tax authority shall ensure that when a penalty is imposed in an order for a
breach of the laws, regulations or procedural requirements, an explanation
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ve not been accounted
for in the books or records maintained by him in the manner required by this Act;
all such goods and the conveyance used as a means of transport for carrying the said
goods shall be liable to detention, in the manner prescribed, by the proper officer and
shall be released only after payment of applicable tax, interest and penalty leviable
thereon or upon furnishing a security, in such form as may be prescribed, equivalent to
the amount of the applicable tax, interest and penalty.
Page 85 of 190
(2) No tax, interest or penalty shall be determined under sub-section (1) without
giving a notice to show cause and without giving the person a reasonable opportunity of
being heard.
70. Confiscation of goods and levy of penalty
(1)
(i)
If any person
supplies any goods in contravention of any of the provisions of this Act or rules
made thereunder leading to evasion of tax; or
(ii)
does not account for any goods on which he is liable to pay tax under this A
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
charges payable in respect of such goods.
(4) No order of confiscation of goods and/or imposition of penalty shall be issued
without giving a notice to show cause and without giving the person a reasonable
opportunity of being heard.
(5) Where any goods are confiscated under this Act, the title of such goods shall
thereupon vest in the appropriate Government.
(6) The proper officer adjudging confiscation shall take and hold possession of the
things confiscated and every Officer of Police, on the requisition of such proper officer,
shall assist him in taking and holding such possession.
71. Confiscation of conveyances
Any conveyance used as a means of transport for carriage of taxable goods
without the cover of documents as may be prescribed in this behalf shall be liable to
confiscation, unless the owner of the conveyance proves that it was so used without the
knowledge or connivance of the owner himself, his agent, if any, and the person in
charge of the conveyance:
Pr
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n violation of
the provisions of this Act, or the rules made thereunder;
(c) collects any amount as tax but fails to pay the same to the credit of the
appropriate Government beyond a period of three months from the date on which such
payment becomes due;
(d)
collects any tax in contravention of the provisions of this Act but fails to pay the
same to the credit of the appropriate Government beyond a period of three months from
the date on which such payment becomes due;
(e)
takes and/or utilizes input tax credit without actual receipt of goods and/or
services either fully or partially, in violation of the provisions of this Act, or the rules
made thereunder;
(f)
(g)
fraudulently obtains refund of any CGST/SGST;
falsifies or substitutes financial records or produces fake accounts and/or
documents or furnishes any false information with an intention to evade payment of tax
due under this Act;
(h)
(i)
obstructs or prevents any officer in the discharge of his duties und
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e amount of tax evaded exceeds two hundred and fifty lakh
rupees, with imprisonment for a term which may extend to five years and with fine;
Page 88 of 190
(!!)
in cases where the amount of tax evaded exceeds fifty lakh rupees but does not
exceed two hundred and fifty 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 exceeds twenty
five lakh rupees but does not exceed fifty lakh rupees, with imprisonment for a term
which may extend to one year and with fine.
(2) If any person convicted of an offence under this section is again convicted of an
offence under this section, then, he shall be punishable for the second and for every
subsequent offence with imprisonment for a term which may extend to five years and
with fine:
Provided that in the absence of special and adequate reasons to the contrary to be
recorded in the judgment of the Court, the imprisonment referred
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the accused, the Court shall presume the existence of such mental
state but it shall be a defence for the accused to prove the fact that he had no such
mental state with respect to the act charged as an offence in that prosecution.
Explanation. In this section, “culpable mental state” includes intention, motive,
knowledge of a fact, and belief in, or reason to believe, a fact.
(2) For the purposes of this section, 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.
76. Relevancy of statements under certain circumstances
(1) A statement made and signed by a person before any gazetted officer of
CGST/IGST/SGST during the course of any inquiry or proceeding under this Act shall be
relevant, for the purpose of proving, in any prosecution for an offence under this Act, the
truth of the facts which it contains,-
Page 89 of 190
(a) when the person who made
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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.
Explanation. For the purposes of this section, –
(a) “company” means a body corporate and includes a firm or other association of
individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
(3) Where an offence under this Act has been committed by a taxable person being a
part
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
in this section shall apply to –
Page 90 of 190
(a)
a person who has been allowed to compound once in respect of any of the
offences described under clause (a) to (g) of sub-section (1) of section 73 and the
offences described under clause (1) which are relatable to offences described under
clause (a) to (g) of 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 the Act or under the provisions of any other SGST
Act or IGST Act in relation to supplies of value exceeding rupees one crore;
(c) a person who has been accused of committing an offence under the Act which is
also an offence under the Narcotic Drugs and Psychotropic Substance Act, 1985 (61 of
1985), the Foreign Exchange Management Act, 1999 (42 of 1999) or any other Act other
than the CGST/SGST Act;
(d) any other class of persons or offences as may be prescribed:
Provided further that any compounding allowed under the provision
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
81, 82 and 83 shall be applicable for appeals under CGST Law.
Sections 84 to 93 are common for CGST and SGST law)
79.
Appeals to First Appellate Authority
(1) Any person aggrieved by any decision or order passed against him under this
Act by an adjudicating authority, may appeal to the prescribed First Appellate
Authority.
(2) The Commissioner of GST may, of his own motion, call for and examine the
record of any proceeding in which an adjudicating authority has passed any decision or
order under this Act, for the purpose of satisfying himself as to the legality or propriety
of the said decision or order and may, by order, direct any GST Officer subordinate to
him to apply to the First Appellate Authority for the determination of such points
arising out of the said decision or order as may be specified by the Commissioner of
GST in his order.
(3)
Where, in pursuance of an order under sub-section (2), the authorized officer
makes an application to the First Appellate Aut
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
to ten percent of the amount in dispute arising from the said order, in relation
to which the appeal has been filed.
Explanation. For the purposes of this sub-section, the expression “amount in dispute”
shall include –
i.
amount determined under section 46 or 47 or 48 or 51;
ii.
iii.
amount payable under rule-of the GST Credit Rules 201…; and
amount of fee levied or penalty imposed.
(7) The First Appellate Authority shall give an opportunity to the appellant of being
heard, if he so desires.
Page 92 of 190
(8) The First Appellate Authority may, if sufficient cause is shown at any stage of
hearing of an appeal, grant time, from time to 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.
(9) The First Appellate Authority may, at the hearing of an appeal, allow an appellant
to go into any ground
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e appellant is given notice to show cause
against the proposed order and the order is passed within the time limit specified under
section 51.
(11) The order of the First Appellate Authority disposing of the appeal shall be in
writing and shall state the points for determination, the decision thereon and the reasons
for the decision.
(12) The First Appellate Authority shall, where it is possible to do so, hear and decide
every appeal within a period of one year from the date on which it is filed:
Provided that where the issuance of order is stayed by an order of a Court or Tribunal,
the period of such stay shall be excluded in computing the period of one year.
(13) On disposal of the appeal, the First Appellate Authority shall communicate the
order passed by him to the appellant and to the adjudicating authority.
(14) A copy of the order passed by the First Appellate Authority shall also be sent to the
jurisdictional Commissioner of CGST or the authority designated by him
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nal by this Act.
(6) The qualifications, eligibility conditions and the manner of selection and
appointment of the National President, the State Presidents, and the Members shall be
such as may be prescribed on the recommendations of the Council.
(7) The National President and the State Presidents shall exercise such powers and
discharge such functions as may be prescribed on the recommendations of the Council.
(8) On ceasing to hold office, the National President, the State Presidents or other
Members of the Appellate Tribunal shall not be entitled to appear, act or plead before the
Appellate Tribunal.
82. Appeals to the Appellate Tribunal
(1)
Any person aggrieved by an order passed against him under section 79 may
appeal to the Appellate Tribunal against such order.
(2) The Appellate Tribunal may, in its discretion, refuse to admit any such appeal
where the tax or input tax credit involved or the difference in tax or input tax credit
involved or the amount of fine, fee
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ction (4) the authorized officer
makes an application to the Appellate Tribunal, such application shall be dealt with by
the Appellate Tribunal as if it were an appeal made against the order of the First
Appellate Authority and the provisions of this Act shall, so far as may be, apply to such
application, as they apply in relation to appeals filed under sub-section (1).
(6) Every appeal under this section shall be filed within three months from the date
on which the order sought to be appealed against is communicated to the Commissioner
of GST, or, as the case may be, the person preferring the appeal.
(7) On receipt of notice that an appeal has been preferred under this section, the
party against whom the appeal has been preferred may, notwithstanding that he may
Page 94 of 190
not have appealed against such order or any part thereof, file, within forty-five days of
the receipt of the notice, a memorandum of cross-objections, verified in the prescribed
manner, against any
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e said order, in
relation to which the appeal has been filed.
Explanation. For the purposes of this sub-section, the expression “amount in dispute”
shall include –
i.
amount determined under section 46 or 47 or 48 or 51;
ii.
iii.
amount payable under rule-of the GST Credit Rules 201…; and
amount of fee levied or penalty imposed.
(11)
Every application made before the Appellate Tribunal,
(a) in an appeal for rectification of mistake or for any other purpose; or
(b) for restoration of an appeal or an application,
shall be accompanied by a prescribed fee :
Provided that no such fee shall be payable in the case of an application filed by or on
behalf of the Commissioner of GST under sub-section (5).
83.
Orders of Appellate Tribunal
(1) The Appellate Tribunal may, after giving the parties to the appeal an
opportunity of being heard, pass such orders thereon as it thinks fit, confirming,
modifying or annulling the decision or order appealed against or may refer the cas
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
f enhancing an assessment or
reducing a refund or input tax credit or otherwise increasing the liability of the other
party, shall be made under this sub-section, unless the Appellate Tribunal has given
notice to him of its intention to do so and has allowed him a reasonable opportunity of
being heard.
(4) The Appellate Tribunal shall, where it is possible to do so, hear and decide every
appeal within a period of one year from the date on which it is filed.
(5) The Appellate Tribunal shall send a copy of every order passed under this section
to the First Appellate Authority, or to the original adjudicating authority, as the case
may be, the appellant, the jurisdictional Commissioner of CGST and the jurisdictional
Commissioner of SGST.
(6) Every order passed under this section shall, subject to the provisions of section 87 or
88, be final.
CHAPTER-XVIII
APPEALS AND REVISION
Page 96 of 190
(Sections 79, 80, 81, 82 and 83 shall be applicable for appeals under SGST Law.
Se
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d penalty arising from the
impugned order, as is admitted by him, and
(b) a sum equal to ten percent of the remaining amount in dispute arising from the said
order, in relation to which the appeal has been filed.
Explanation. For the purposes of this sub-section, the expression “amount in dispute”
shall include –
i.
amount determined under section 46 or 47 or 48 or 51;
ii.
amount payable under rule-of the GST Credit Rules 201…; and
iii.
amount of fee levied or penalty imposed:
Provided that nothing in this sub-section shall affect the right of the departmental
authorities to apply to the First Appellate Authority for ordering a higher amount of pre-
deposit, not exceeding fifty percent of the amount in the dispute, in a case which is
considered by the Commissioner of GST to be a “serious case”.
Explanation. For the purpose of this proviso, the expression “serious case” shall mean a
case involving a disputed tax liability of not less than Rupees Twenty Five Crores and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
y be
necessary, pass such order, as he thinks just and proper, confirming, modifying or
annulling the decision or order appealed against:
Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or
confiscating goods of greater value or reducing the amount of refund 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 First 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 utilized, 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 51.
(9) The order of the First Appellate Authority disposing of the appeal shall be in
writing and shal
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
owers of Commissioner
(1) Subject to the provisions of section 93 and any rules made thereunder, the
Commissioner may on his own motion or upon information received by him, call for and
examine the record of any proceeding under this Act, and if he considers that any
decision or order passed under this Act by any officer subordinate to him is erroneous in
so far as it is prejudicial to the interest of the revenue, he may, if 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
Page 98 of 190
may be necessary, pass such order, as he thinks just and proper, including enhancing or
modifying or annulling the said decision or order.
(2) The Commissioner shall not exercise any power under sub-section (1), if.-
(a) the order has been subject to an appeal under section 79 or under section 82 or
under section 87 or under section 88; or
(b)
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of the Appellate Tribunal or as the case may be, 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 as the case may be, 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 referred to in clause (b) of sub-section (2).
(6) Where the issuance of an order under sub-section (1) is stayed by the order of a
Court or Tribunal, the period of such stay shall be excluded in computing the period of
three years under sub-section (2).
(7) For the purposes of this section, 'record' shall include all records relating to any
proceedings under this Act available at the time of examination by the Commissioner.
(8) For the purposes of this section, 'decision' shall include intimation given by any
officer subordinate to the Commissioner.
81. Constitution of the National Appellate Tribunal
(1) The Central Gove
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
such powers and
discharge such functions as may be prescribed on the recommendations of the Council.
(8) On ceasing to hold office, the National President, the State Presidents or other
Members of the Appellate Tribunal shall not be entitled to appear, act or plead before the
Appellate Tribunal.
82. Appeals to the Appellate Tribunal
(1)
Any person aggrieved by an order passed against him under section 79 or under
section 80 may appeal to the Appellate Tribunal against such order.
(2) The Appellate Tribunal may, in its discretion, refuse to admit any such appeal
where the tax or input tax credit involved or the difference in tax or input tax credit
involved or the amount of fine, fee or penalty determined by such order, does not
exceed one lakh rupees.
(3) Every appeal under this section shall be filed within three months from the date
on which the order sought to be appealed against is communicated to the person
preferring the appeal.
(4) On receipt of notice that an ap
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
h fee shall be payable in the case of an appeal filed by the
Commissioner or a memorandum of cross-objections referred to in sub-section (4).
(7) (a) No appeal shall be filed under sub-section (1) unless the appellant has deposited
(i) 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
(ii) a sum equal to ten percent of the remaining amount in dispute arising from the said
order, in relation to which the appeal has been filed.
Explanation. For the purposes of this sub-section, the expression “amount in dispute”
shall include –
i.
amount determined under section 46 or 47 or 48 or 51;
Page 100 of 190
iii. amount payable under rule-of the GST Credit Rules 201…; and
iii.
amount of fee levied or penalty imposed:
Provided that nothing in this sub-section shall affect the right of the departmental
authorities to apply to the Appellate Tribunal for ordering a higher amount of pre-
deposit, not
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
sioner of GST.
83. Orders of Appellate Tribunal
(1)
The Appellate Tribunal may, after giving the parties to the appeal an opportunity
of being heard, pass such orders thereon as it thinks fit, confirming, modifying or
annulling the decision or order appealed against or may refer the case back to the First
Appellate Authority, or the revisional authority, as the case may be, or to the original
adjudicating authority, with such directions as it may think fit, for a fresh adjudication or
decision, as the case may be, 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, from time to 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
as the case may be, the appellant, the jurisdictional Commissioner of CGST
and the jurisdictional Commissioner of SGST.
(6) Save as provided in section 87 or section 88, orders passed by the Appellate
Tribunal on an appeal shall be final.
84. Procedure of Appellate Tribunal
(1) The powers and functions of the Appellate Tribunal may be exercised and
discharged by Benches constituted by the National President or the State Presidents from
amongst the members thereof.
(2)
Subject to the provisions contained in sub-section (3), a Bench shall consist of
one Member (Judicial), one Member (Technical – CGST) and one Member (Technical
SGST).
(3) The National President or a State President, or any other member of the Appellate
Tribunal authorized in this behalf by the National President or a State President, may,
sitting singly, dispose of any case which has been allotted to the Bench of which he is a
member, where in any disputed case, the tax or input tax credit involved or the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the exercise of its powers or of the discharge of its functions, including the
places at which the Benches shall hold their sittings.
(6)
The Appellate Tribunal shall, for the purposes of discharging its functions, have
the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of
1908), when trying a suit in respect of the following matters, namely :-
a) discovery and inspection;
b) enforcing the attendance of any person and examining him on oath;
c) compelling the production of books of account and other documents; and
d) issuing commissions.
Page 102 of 190
(7)
Any proceeding before the Appellate Tribunal shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228 and for the purpose of section
196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed
to be a Civil Court for all the purposes of section 195 and Chapter XXVI of the Code of
Criminal Procedure, 1973 (2 of 1974).
85. Interest
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
eans a person
authorised by the person referred to in sub-section (1) to appear on his behalf, being —
(a) his relative or regular employee; or
(b) an advocate who is entitled to practice in any court in India, and who has not been
debarred from practicing before any court in India; or
(c) any chartered accountant, a cost accountant or a company secretary, who holds a
valid certificate of practice and who has not been debarred from practice; or
(d) any person who has acquired such qualifications as the Central Government (or the
State Government) may, on the recommendation of the Council, prescribe for this
purpose.
(3)
Notwithstanding anything contained in this section, no person who was serving
in the indirect tax departments of the Government of India or of any State Government,
and has retired or resigned from such service after having served for not less than two
years as a Gazetted officer in that department shall be entitled to appear as an
authorised repre
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
during which the insolvency continues in the case of a person
referred to in clause (c).
(5) If any person is found guilty of misconduct by the prescribed authority in
connection with any proceedings under this Act or under any of the Acts referred to in
clause (b) of sub-section (4), the prescribed authority may direct that he shall
thenceforth be disqualified to represent any person under sub-section (1).
(6) Any order or direction under clause (b) of sub-section (4) or sub-section (5) shall
be subject to the following conditions, namely: —
a)
no such order or direction shall be made in respect of any person unless he has
been given a reasonable opportunity of being heard;
b)
any person against whom any such order or direction is made may, within one
month of the making of the order or direction, appeal to the competent authority
[Central/State Government] to have the order or direction cancelled; and
c) no such order or direction shall take effect until the ex
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
red and eighty days from the date on which the order
appealed against is received by the Commissioner of GST or the other party;
b)
accompanied by a prescribed fee ;
c) in the form of a memorandum of appeal precisely stating therein the substantial
question of law involved.
(4) The High Court may admit an appeal after the expiry of the period of one hundred
and eighty days referred to in clause (a) of sub-section (3), if it is satisfied that there
was sufficient cause for not filing the same within that period.
(5)
Where the High Court is satisfied that a substantial question of law is involved in
Page 104 of 190
any case, it shall formulate that question.
(6) The appeal shall be heard only on the question so formulated, and the respondents
shall, at the hearing of the appeal, be allowed to argue that the case does not involve
such question:
Provided that nothing in this sub-section shall be deemed to take away or abridge the
power of the Court to hear, for reasons to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ly, by one or more
of the other Judges of the High Court and such point shall be decided according to the
opinion of the majority of the Judges who have heard the case including those who first
heard it.
(11) 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.
(12) Save as otherwise provided in this Act, the provisions of the Code of Civil
Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may
be, apply in the case of appeals under this section.
88. Appeal to the Supreme Court
(1) An appeal shall lie to the Supreme Court from any judgment or order passed by
the High Court in an appeal made under section 87, in any case which, on its own
motion or on an oral application made by or on behalf of the party aggrieved,
immediately after passing of the judgment or order, the High Court certifies to be a fit
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ng that an appeal has been preferred to the High Court or the Supreme
Court, sums due to the Government as a result of an order passed by the Appellate
Tribunal under sub-section (1) of section 83 or an order passed by the High Court under
section 87, as the case may be, shall be payable in accordance with the order so passed.
91. Exclusion of time taken for copy
In computing the period of limitation prescribed for an appeal or application under this
Chapter, the day on which the order complained of was served, and if the party
preferring the appeal or making the application was not furnished with a copy of the
order when the notice of the order was served upon him, the time required for obtaining
a copy of such order, shall be excluded.
92. Appeal not to be filed in certain cases
(1) The Board or the State Government may, on the recommendation of the Council,
from time to time, issue orders or instructions or directions fixing such monetary limits,
as it may deem fit, for
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ication was not filed by the GST
Officer in pursuance of the orders or instructions or directions issued under sub-section
(1).
93. Non Appealable decisions and orders
Notwithstanding anything to the contrary in any provisions of this Act, no appeal shall lie
against any decision taken or order passed by a GST officer if such decision taken or
order passed relates to any one or more of the following matters:-
Page 106 of 190
(a) An order of the Commissioner or other competent authority for transfer of
proceeding from one officer to another officer;
(b) An order pertaining to the seizure or retention of books of account, register and
other documents; or
(c) An order sanctioning prosecution under the Act; or
(d)
An order passed under section 55.
94. Definitions
CHAPTER- XIX
ADVANCE RULING
Page 107 of 190
In this Chapter, unless the context otherwise requires, –
(a) “advance ruling” means a written decision provided by the Authority or, as the case
may be, the A
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t
of the members shall be as may be prescribed.
96. Appellate Authority for Advance Ruling
(1) The Appellate Authority shall be located in each State.
(2) The Appellate Authority shall comprise the Chief Commissioner of CGST as
designated by the Board and the Commissioner of SGST having jurisdiction over the
applicant.
97. Application for advance ruling
(1) An applicant desirous of obtaining an advance ruling under this Chapter may make
an application in such form and in such manner as may be prescribed, stating the
question on which the advance ruling is sought.
(2) The question on which the advance ruling is sought shall be in respect of,
(a) classification of any goods and/or services under the Act;
(b) applicability of a notification issued under provisions of the Act having a bearing
on the rate of tax;
(c) the principles to be adopted for the purposes of determination of value of the
goods and/or services under the provisions of the Act;
(d) admissibility of inpu
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
earing the applicant or authorized representative of the applicant as well as the
authorized representative of the prescribed officers, by order, either admit or reject
the application:
Provided that the Authority shall not admit the application where the question raised in
the application is, –
(a) already pending in the applicant's case before any First Appellate Authority, the
Appellate Tribunal or any Court;
(b) the same as in a matter already decided by the First Appellate Authority, the
Appellate Tribunal or any Court;
(c) the same as in a matter already pending in any proceedings in the applicant's case
under any of the provisions of the Act;
(d) the same as in a matter in the applicant's case already decided by the adjudicating
authority or assessing authority, whichever is applicable:
Provided further that no application shall be rejected under this sub-section unless an
opportunity has been given to the applicant of being heard:
Provided also that where the app
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
differ and make a
reference to the Appellate Authority for hearing and decision on such question.
(6) The Authority or, as the case may be, the Appellate Authority shall pronounce its
advance ruling in writing within ninety days of the receipt of application or, as the case
may be, reference made under sub-section (5).
(7) Where the members of the Appellate Authority differ on any point or points
referred to it under sub-section (5), it shall be deemed that no advance ruling can be
issued in respect of the question covered by the reference application.
(8)
A copy of the advance ruling pronounced by the Authority or, as the case may be,
the Appellate Authority duly signed by the Members and certified in the prescribed
manner shall be sent to the applicant and the jurisdictional CGST / SGST officer and, as
the case may be, to the Authority, as soon as may be, after such pronouncement.
99. Appeal to the Appellate Authority
(1) The prescribed or jurisdictional CGST/SGST offi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
eferred
to in appeal, it shall be deemed that no advance ruling can be issued in respect of the
question covered under the appeal.
(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed
by the Members and certified in the prescribed manner shall be sent to the applicant, the
prescribed or the jurisdictional CGST / SGST officer and to the Authority, as soon as may
be, after such pronouncement.
101. Rectification of advance ruling
The Authority or, as the case may be, the Appellate Authority may amend any order
passed by it under section 98 or section 100, as the case may be, so as to rectify any
mistake apparent from the record, if such mistake is noticed by the Authority or, as the
case may be, the Appellate Authority on its own accord, or is brought to its notice by
the prescribed or the jurisdictional CGST / SGST officer or the applicant within a period
of six months from the date of the order:
Provided that no rectification which has the eff
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
vance ruling referred to in sub-section (1) shall be binding as aforesaid unless
the law, facts or circumstances supporting the original advance ruling have changed.
103. Advance ruling to be void in certain circumstances
(1) Where the Authority or, as the case may be, the Appellate Authority finds that
advance ruling pronounced by it under sub-section (4) of section 98 or under sub-section
(1) of section 100 has been obtained by the applicant or, as the case may be, 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 the
Act shall apply (after excluding the period beginning with the date of such advance ruling
and ending with the date of order under this sub-section) to the applicant as if such
advance ruling had never been made:
Provided that no order shall be passed under this sub-section unless an opportunity has
been given to the applicant o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
de (45 of 1860).
105. Procedure of the Authority and the Appellate Authority
The Authority or, as the case may be, the Appellate Authority shall, subject to the
provisions of this Chapter, have power to regulate its own procedure in all matters
arising out of the exercise of its powers under the Act.
CHAPTER- XX
SETTLEMENT OF CASES
Page 111 of 190
At present, the provisions for settlement of cases are incorporated under Chapter
VIIA of the IGST Act.
Page 112 of 190
CHAPTER- XXI
PRESUMPTION AS TO DOCUMENTS
106. Presumption as to documents in certain cases
Where any document-
(i)
(!!)
is produced by any person under the Act or any other law, or
has been seized from the custody or control of any person under the Act or any
other law, or
(iii) has been received from any place within or outside India in the course of any
proceedings under the Act or any other law
and such document is tendered by the prosecution in evidence against him or any other
person who is tried
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 (hereinafter referred to as a “computer printout”), if the conditions
mentioned in sub-section (2) and the other provisions contained in this section are
satisfied in relation to the statement and the computer in question; or
d) any information stored electronically in any device or media, including any hard
copies made of such information
shall be deemed to be also a document for the purposes of the Act and the rules
made thereunder and shall be admissible in any proceedings there under, without
further proof or production of the original, as evidence of any contents of the original or
of any fact stated therein of which direct evidence would be admissible.
Page 113 of 190
(2) The conditions referred to in sub-section (1) in respect of a computer printout shall
b
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
puter in the ordinary course of the said activities.
(3) Where over any period, the function of storing or processing information for the
purposes of any activities regularly carried on over that period as mentioned in clause
(a) of sub-section (2) was regularly performed by computers, whether
a) by a combination of computers operating over that period; or
b) by different computers operating in succession over that period; or
c) by different combinations of computers operating in succession over that period; or
d) in any other manner involving the successive operation over that period, in whatever
order, of one or more computers and one or more combinations of computers,
all the computers used for that purpose during that period shall be treated for the
purposes of this section as constituting a single computer; and references in this section
to a computer shall be construed accordingly.
(4) In any proceedings under this Act and the rules made thereunder where it is
desire
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
a) information shall be taken to be supplied to a computer if it is supplied thereto in any
appropriate form and whether it is so supplied directly or (with or without human
intervention) by means of any appropriate equipment;
b) whether in the course of activities carried on by any official, information is supplied
with a view to its being stored or processed for the purposes of those activities by a
computer operated otherwise than in the course of those activities, that information, if
duly supplied to that computer, shall be taken to be supplied to it in the course of those
activities;
c) a document shall be taken to have been produced by a computer whether it was
produced by it directly or (with or without human intervention) by means of any
appropriate equipment.
Explanation.
–
For the purposes of this section,
–
a) “computer” means any device that receives, stores and processes data, applying
stipulated processes to the information and supplying results of these
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ansferee or the lessee of a business referred to in subsection (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 and/or services effected by him with effect from
the date of such transfer and shall, if he is an existing taxable person, apply within the
prescribed time for amendment of his certificate of registration.
109. Liability in case of amalgamation/merger of companies
(1) When two or more companies are amalgamated or merged by the order of court
or of Tribunal or of the Central Government 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 and/or services to or from each other during the period commencing
on the date from which the order takes effect till the date of the order, then such
transactions of supply and receipt shall be included in the turnover of supply or receipt of
the respective
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r calling for such information
as he may deem fit, notify 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 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
Page 116 of 190
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 is not attributed to any
gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the
compa
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
all continue until the
date on which such intimation is received by the Commissioner.
112. Liability of guardians, trustees etc.
Where the business in respect of which any tax, is payable under this Act is carried on by
any guardian, trustee or agent of a minor or other incapacitated person on behalf of and
for the benefit of such minor or other incapacitated person, the tax, interest or penalty
shall be levied upon and recoverable from such guardian, trustee or agent, as the case
may be, in like manner and to the same extent as it would be determined and
recoverable from any such minor or other incapacitated person, as if he were a major or
capacitated person and as if he were conducting the business himself, and all the
provisions of this Act shall, so far as may be, apply accordingly.
113. Liability of Court of Wards etc.
Where the estate or any portion of the estate of a taxable person owning a business in
respect of which any tax, interest or penalty is payable under
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
shall be
liable to pay tax, interest or penalty due from such person under this Act, and
(b) if the business carried on by the person is discontinued, whether before or after
his death, his legal representative shall be liable to pay out of the estate of the
deceased, to the extent to which the estate is capable of meeting the charge, the tax,
penalty or interest due from such person under this Act,-
whether such tax interest or penalty has been determined before his death but has
remained unpaid or is determined after his death.
(2) Where a taxable person, liable to pay tax under this Act, is a Hindu Undivided
Family or an association of persons and the property of the Hindu Undivided Family or
the association of persons, as the case may be, 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 upto the time of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the time of the termination of the guardianship or trust, whether such tax, interest
or penalty has been determined before the termination of guardianship or trust but has
remained unpaid or is determined thereafter.
115. Liability in other cases
(1) Where a taxable person is a firm or an association of persons or a Hindu
Undivided Family and such firm, association or family has discontinued business-
(a) the tax payable under this Act by such firm, association or family up to the date
of such discontinuance may be determined as if no such discontinuance had taken
place; and
(b) every person who was at the time of such discontinuance, a partner of such firm,
or a member of such association or family, shall, notwithstanding such discontinuance,
be liable jointly and severally 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 afte
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ssolution or, as the case may be, to partition.
11. Explanation. For the purpose of this chapter, a limited liability partnership
formed and registered under the provisions of the Limited Liability Partnership Act, 2012
(743 of 2012) shall also be considered as a firm.
Page 119 of 190
CHAPTER- XXIII
MISCELLANEOUS PROVISIONS
116. GST compliance rating
(1)
Every taxable person shall be assigned a GST compliance rating score based on
his record of compliance with the provisions of this Act.
(2) The GST compliance rating score shall be determined on the basis of parameters
to be prescribed in this behalf.
(3) The GST compliance rating score shall be updated at periodic intervals and
intimated to the taxable person and also placed in the public domain in the manner
prescribed.
117. Obligation to furnish information return
(1) Any person, beingۥ
(a) a taxable person; or
(b) a local authority or other public body or association; or
(c) any authority of the State Gov
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
988 (59 of 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 (30 of
2013); or
(k) the recognised stock exchange referred to in clause (f) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956); or
(I) a depository referred to in clause (e) of sub-section (1) of section 2 of the
Depositories Act, 1996 (22 of 1996); or
(m) an officer of the Reserve Bank of India, constituted under section 3 of the Reserve
Bank of India Act, 1934 (2 of 1934); or
Page 120 of 190
(n) Goods and Service Tax Network
who is responsible for maintaining record of registration or statement of accounts or any
periodic return or document containing details of payment of tax and other details of
transaction of goods or services or transactions related to a bank account or
consumption of electricity or transaction of purchase, sale or exchange of goods
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rovisions 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 prescribed
authority may serve upon him a notice requiring furnishing of such information return
within a period not exceeding ninety days from the date of service of the notice and such
person shall furnish the information return.
118. Penalty for failure to furnish information return
If a person who is required to furnish an information return under section 117
fails to do so within the period specified in the notice issued under sub-section (3)
thereof, the prescribed authority may direct that such person shall pay, by way of
penalty, a sum of one hundred rupees for each day of the period during which the failure
to furnish such return continues.
119. Power to collect statistics
(1) The Board/Commissioner, if it considers that for the purposes of the better
administration of t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
yer or person or his authorised agent, be published in such manner as to enable
any particulars to be identified as referring to a particular taxpayer and no such
information shall be used for the purpose of any proceedings under the provisions of the
Act.
(2) Except for the purposes of prosecution under the Act, or any other Act, no person
who is not engaged in the collection of statistics under the Act or of compilation or
computerization thereof for the purposes of the Act, shall be permitted to see or have
access to any information or any individual return referred to in that section.
(3) If any person required to furnish any information or return under section 119,-
(a) without reasonable cause fails to furnish such information or return as may by
that section be required, or
(b) willfully furnishes or causes to furnish any information or return which he
knows to be false,
he shall, on conviction, be punished with fine which may extend to one hundred rupees
and in ca
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ating to
a class of dealers or class of transactions, if in the opinion of the competent authority, it
is desirable in the public interest, to publish such information.
121. Test purchase of goods and/or services
The [Commissioner] of CGST/SGST or an officer authorized by him may cause
purchase of any goods and/or services by any person authorized by him from the
business premises of any taxable person, to check 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
paid towards the goods after cancelling any tax invoice or bill of supply issued.
122. Drawal of samples
Page 122 of 190
The [Commissioner] of CGST/SGST or an officer authorized by him may take
samples of goods from the possession of any taxable persons, where he considers it
necessary, and provide a receipt for any samples so taken.
123. Burden of Proof
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
), or in any record of any proceedings under the Act shall, save as provided in sub-
section (4), be treated as confidential;
(2) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no
Court shall save as aforesaid, be entitled to require any GST officer to produce before it
or to give evidence before it in respect of particulars referred to in sub-section (1).
(3) Save as provided in sub-section (4), if any GST officer discloses any of the
particulars referred to in sub-section (1), he shall, on conviction, be punished with
imprisonment which may extend to six months or with fine or with both:
Provided that, no prosecution shall be instituted under this section except with the
previous sanction of the Central Government or the State Government, as the case may
be.
(4) Nothing contained in this section shall apply to the disclosure of,-
(a)
any such particulars in respect of any such statement, return, accounts,
documents, evidence, affidavit
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
wers thereunder; or
(e) any such particulars to any officer appointed for the purpose of audit of tax
receipts or refunds of the tax imposed by the Act; or
(f) any such particulars where such particulars are relevant the purposes of any
inquiry into the conduct of any GST officer, to any person or persons appointed as an
inquiry officer under any relevant law; or
(g)
such facts to an officer of the Central Government or any State Government as
may be necessary for the purpose of enabling that Government to levy or realise any tax
or duty imposed by it; or
(h)
any such particulars, when such disclosure is occasioned by the lawful exercise by
a public servant or any other statutory authority, of his or its powers under any law for
the time being in force; or
(i) any such particulars relevant to any inquiry into a charge of misconduct in
connection with any proceedings under the Act against a practising advocate, tax
practitioner, a practising cost accountant, a practising
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
g persons in certain cases
(1) If the Competent Authority is of opinion that it is necessary or expedient in the
public interest to publish the names of any person and any other particulars relating to
any proceedings or prosecutions under the Act in respect of such person, it may cause to
be published such names 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 the Act until the time for presenting an appeal to the First Appellate Authority
under section 79 has expired without an appeal having been presented or the appeal, if
presented, has been disposed of.
Explanation. In the case of firm, company or other association of persons, the names
of the partners of the firm, directors, managing agents, secretaries and treasures or
managers of the company, or the members of the association, as the case may be, may
also be published if, in the opinion of the Competent Authority, circumstan
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rvice has not been called in question at
or in the earliest proceedings commenced, continued or finalised pursuant to such
notice, order or communication.
129. Rectification of mistakes or errors apparent from record
Without prejudice to the provisions of section 128, and notwithstanding anything
contained in any other provisions of this Act, any authority, who has passed or issued
any decision or order or summons or notice or certificate or any other document, may
rectify any error or mistake which is apparent from record in such decision or order or
summons or notice or certificate or any other document, either on its own motion or
where such error or mistake is brought to its notice by any CGST / SGST officer or by
the affected person within a period of three months from the date of issue of such
decision or order or summons or notice or certificate or other document, as the case
may be:
Provided that no such rectification shall be done after a period of six months from
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ide any question arising from or relating to anything done or purported
to be done under the Act;
Page 125 of 190
131. Levy of fees
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, which may include a fee for such application also.
132. Power of Central (or State) Government to make rules
(1) The Central Government (or the State Government) may, on the
recommendation of the Council, make rules, including rules conferring the power to
issue notifications with retrospective effect under those rules, to carry into effect the
purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power,
such rules may ·
(i) provide for the date for determination of rate of tax and the place of supply of
goods or services or both;
(ii)having regard to the normal practice in the supply of goods or services, define or
specify
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of input tax credit;
provide, subject to such conditions as may be prescribed, for the carrying
forward of the unutilized balances of cenvat credit of the duties of excise
and the service tax, under the Cenvat Credit Rules 2004, (or of VAT credit
under the state VAT credit rules) lying with the taxable persons on the date
of their switching over to GST;
provide for the remission of tax leviable on any taxable supplies, which due
to any natural causes are found to be deficient in quantity, the limit or
limits of percentage beyond which no such remission shall be allowed and
the different limit or limits of percentage for different varieties of the same
taxable supply or for different areas or for different seasons;
specify the persons who shall get themselves registered under section 19
and the time, manner and form in which application for registration shall be
made;
provide for the manner of verification of application and issue of
registration under the Act and the fe
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and the late fee for delayed furnishing of return under relevant section;
provide for charging or payment of interest under the various provisions of
the Act;
provide for the detention or attachment of goods, plant, machinery or
material and other movable or immovable properties for the purpose of
exacting the tax on taxable supplies in respect of which breaches of the Act
or rules made thereunder have been committed and the disposal of things
so detained or attached or confiscated;
authorise and regulate the composition of offences against, or liabilities
incurred under the Act or the rules made thereunder;
provide for the amount to be paid for compounding and the manner of
compounding of offences under section 78;
provide for publication, subject to such conditions as may be specified, the
names and other particulars of persons found guilty of contravention of any
provision of the Act or of any rule made thereunder;
provide for the manner of recovery of any amount due
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Act;
(xxvi) provide for the qualifications and the manner of appointment of the
National President, the State President, and the Members of the Appellate
Tribunal under section 81 of the Act, and other matters related or
Page 127 of 190
incidental thereto;
(xxvii)—provide for the settlement of cases, in accordance with Chapter.
Act;
of this
(xxviii) regulate in such manner as the Central Government / State Government
thinks fit, the movement of supplies from any part of India to any other
part thereof;
(xxix) regulate the removal of taxable supplies of goods from the place where
produced, stored or manufactured or subjected to any process of
production or manufacture and their transport to or from the premises of a
registered person, or a bonded warehouse, or to a market;
(XXX)
provide for the appointment, licensing, management and supervision of
bonded warehouses and the procedure to be followed for entry of goods
into such warehouses and clearance of goods
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ds intended for
export out of India and for rendering any other service by a GST Officer
under this Act or the rules made thereunder;
(xxxvi) authorise the Board (or competent authority) or officers of GST, as the
case may be, appointed for the purposes of this Act to provide, by written
instructions, for supplemental matters arising out of any rule made by the
Central Government (or the State Government) under this section;
(xxxvii) provide for the manner of provisional attachment of property under section
58;
(xxxviii) make provisions for determining export of taxable supply of services;
(xxxix) provide for grant of exemption to, or rebate of tax paid on, taxable supply
of services which are exported out of India;
(XI)
(xli)
(xlii)
(xliii)
provide for manner of administering of payment of taxes under the
compounding of tax;
provide for dealing with situations where goods are returned;
provide for specifying the details to be given in the invoices, the
maintenance
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ules conferred by this section shall on the first occasion of the
exercise thereof include the power to give retrospective effect to the rules or any of
them from a date not earlier than the date on which the provisions of this Chapter come
into force.
(4) In making rules under this section, the Central Government (or State Government)
may provide that any person committing a breach of any rule shall, where no other
penalty is provided by the Act, be liable to a penalty not exceeding ten thousand rupees.
132A. General power to make Regulations
(1) The Board or the Commissioner SGST may make regulations consistent with this Act
and rules, generally to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing powers, such
regulations may provide for all or any of the following matters namely-
(b)
(c)
133. Delegation of powers
The Competent Authority may, by notification in the Gazette direct that subject to such
conditi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
val of difficulties
(1)
If any difficulty arises in giving effect to any provision of the Act, the Central
Government / State Government may, by general or special order published in
the Gazette, do anything not inconsistent with the provisions of the Act which appears to
it to be necessary or expedient for the purpose of removing the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from
the date of effect of the provision giving rise to the difficulty.
(2) Every order made under this section shall be laid, as soon as may be, after is
made, before Parliament / State Legislature.
136. Service of notice in certain circumstances
(1) Any decision, order, summons, notice or other communication under the Act or the
rules made thereunder shall be served by any one of the following methods, namely: –
(a) by giving or tendering it directly or by a messenger including a courier to the
addressee or the taxpayer or to his manager or to a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t his last known place of business or residence, or
(i) if the mode prescribed under (h) is also not practicable for any reason, then by
affixing a copy thereof on the notice board of the officer or authority who or which
passed such decision or order or issued such summons or notice.
(2) Every decision, order, summons, notice or any communication shall be deemed to
have been served on the date on which it is tendered or published or a copy thereof is
affixed in the manner provided in sub-section (1).
(3) When such decision, order, summons, notice or any communication is sent by
registered post, it shall be deemed to have been received by the addressee at the expiry
of the period normally taken by a registered letter in transit unless the contrary is
proved.
137. Rounding off of tax etc.
Page 130 of 190
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 the Act shall be rounded off to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
le, notification or order so amended, repealed, superseded or rescinded; or
(d) affect any penalty, forfeiture or punishment incurred in respect of any offence
committed under or in violation of any rule, notification or order so amended, repealed,
superseded or rescinded; or
(e) affect any investigation, legal proceeding or remedy in respect of any such right,
privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and any such
investigation, legal proceeding or remedy may be instituted, continued or enforced and
any such penalty, forfeiture or punishment may be imposed as if the rule, notification or
order, as the case may be, had not been amended, repealed, superseded or rescinded.
139. Publication of rules and notifications and laying of rules before
Parliament / State Legislature
(1) All rules made and notifications issued under the Act shall be published in the Official
Gazette.
and section
and section
(2) Every rule made under the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 notification or order.
CHAPTER- XXIV
REPEAL AND SAVING
Page 131 of 190
140. Repeal and saving
(1)
From the date of commencement of the Act, the (State) General Sales Tax/Value
Added Tax Act, the Central Excise Act 1944, and the Central Excise Tariff Act 1985 shall
apply only in respect of goods included in the entry 84 and entry 54 of the Union List and
the State List respectively, of the Schedule VII to the Constitution of India.
Provided that the aforesaid restriction of the application of the statutes referred above
shall not-
(a)
Revive anything not in force or existing at the time at which the restriction takes
effect; or
(b) Affect the previous operation of the unrestricted Acts or anything duly done or
suffered thereunder; or
(c) Affect any right, privilege, obligation, or liability acquired
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ntinued under the earlier law as if this Act had not come
into force and the said law had not been repealed.
(2)
The following Acts are hereby repealed, to the extent mentioned hereunder,
namely: (as per the taxes subsumed under GST …………….)
(a) The Entry Tax Act,..
(b) The Entertainment Tax,
(c) The Luxury Tax Act,
(d) Duty of Excise on Medicinal and Toilet Preparation Act,
Chapter V of the Finance Act, 1994.
(e)
(3)
(a)
The repeals referred to in sub-section (2) shall notۥ
Revive anything not in force or existing at the time at which the repeal takes
effect; or
(b) Affect the previous operation of the repealed Acts or anything duly done or
suffered thereunder; or
(c) Affect any right, privilege, obligation, or liability acquired, accrued or incurred
under the repealed Acts; or
Page 132 of 190
(d) Affect any tax, surcharge, penalty, interest as are due or may become due or any
forfeiture or punishment incurred or inflicted in respect of any offenc
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
es (which are
being subsumed in GST) and continuing in office on the appointed day, shall be deemed
to have been appointed as GST officers/Competent Authorities under the respective
provisions of the Act.
(b) The Central Government (or the State Government) may issue orders or make rules
consistent with the need for smooth transition to GST including the need to take care of
matters not specifically covered hereinbefore so long as such matters are not in conflict
with the purposes of the Act.
142. Migration of existing taxpayers to GST
(1) On the appointed day, every person registered under any of the earlier laws shall
be issued a certificate of registration on a provisional basis in such form and
manner as may be prescribed.
(2) The certificate of registration issued under sub-section (1) shall be valid for a
period of six months from the date of its issue:
Provided that the said validity period may be extended for such further period as
the Central/State Government ma
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
credit carried forward in a return to be allowed
as input tax credit
(1) A registered taxable person shall be entitled to take, in his electronic credit ledger,
credit of the amount of cenvat credit carried forward in a return, furnished under the
earlier 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 the taxable person shall not be allowed to take credit unless the said
amount was admissible as cenvat credit under the earlier law and is also admissible as
input tax credit under this Act.
(2) The amount taken as credit under sub-section (1) shall be recovered as an arrear of
tax under this Act from the taxable person if the said amount is found to be recoverable
as a result of any proceeding instituted, whether before or after the appointed day,
against such person under the earlier law.
(CGST Law)
(1) A registered taxable person shall be entitled to take, in his electron
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
cenvat credit in respect of capital goods, not carried forward in a
return, furnished under the earlier 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 taxable person shall not be allowed to take credit unless the said credit
was admissible as cenvat credit under the earlier law and is also admissible as input tax
credit under this Act:
Explanation 1.- For the purposes of this section, the expression “unavailed cenvat
credit” means the amount that remains after subtracting the amount of cenvat credit
Page 135 of 190
already availed in respect of capital goods by the taxable person under the earlier law
from the aggregate amount of cenvat credit to which the said person was entitled in
respect of the said capital goods under the earlier law.
Explanation 2.- Capital goods means the goods as defined under clause (a) of rule 2 of
CENVAT Credit Rules, 2004.
(2) The amount taken
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t tax credit already
availed in respect of capital goods by the taxable person under the earlier law from the
aggregate amount of input tax credit to which the said person was entitled in respect of
the said capital goods under the earlier law.
(2) The amount taken as credit under sub-section (1) shall be recovered as an arrear of
tax under this Act from the taxable person if the said amount is found to be recoverable
as a result of any proceeding instituted, whether before or after the appointed day,
against such person under the earlier law.
(SGST Law)
145. Credit of eligible duties and taxes in respect of inputs held in stock to be
allowed in certain situations
(1) A registered taxable person, who was not liable to be registered under the earlier law
or who was engaged in the manufacture of exempted goods under the earlier law but
which are liable to tax under this Act, shall be entitled to take, in his electronic credit
ledger, credit of eligible duties and taxes in r
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
day.
(2) The amount of credit under sub-section (1) shall be calculated in accordance with
generally accepted accounting principles in such manner as may be prescribed.
(3) The amount taken as credit under sub-section (1) shall be recovered as an arrear of
tax under this Act from the taxable person if the said amount is found to be recoverable
as a result of any proceeding instituted, whether before or after the appointed day,
against such person under the earlier law.
Explanation. For the purpose of this section and section 146, the expression “eligible
duties and taxes” means-
(i)
the duty of excise specified in the First Schedule to the Central Excise Tariff Act,
1985(5 of 1986);
(ii) the duty of excise specified in the Second Schedule to the Central Excise Tariff
Act, 1985(5 of 1986);
(iii) the additional duty of excise leviable under section 3 of the Additional Duties of
Excise (Textile and Textile Articles) Act, 1978 (40 of 1978);
(iv) the additional duty of exci
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
f the Value Added Tax in respect of inputs held in stock and inputs contained in semi-
finished or finished goods held in stock on the appointed day subject to the following
conditions:
(i) such inputs and / or goods are used or intended to be used for making taxable
supplies under this Act;
(ii) the said taxable person was eligible for input tax credit on purchase of such inputs
and/or goods under the earlier law but for his not being liable for registration or the
goods remaining exempt under the said law;
(iii) the said taxable person is eligible for input tax credit under this Act;
(iv) the said taxable person is in possession of invoice and/or other prescribed
documents evidencing payment of tax under the earlier law in respect of inputs held in
stock and inputs contained in semi-finished or finished goods held in stock on the
appointed day; and
(v) such invoice and /or other prescribed documents were issued not earlier than twelve
months immediately preceding the ap
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and inputs
contained in semi-finished or finished goods held in stock on the appointed date subject
to the following conditions:
(i) such inputs and / or goods are used or intended to be used for making taxable
supplies under this Act;
(ii) the said person is not paying tax under section 8;
Page 138 of 190
(iii) the said taxable person was eligible for cenvat credit on receipt of such inputs and/or
goods under the earlier law but for his being a composition taxpayer under the said law;
(iv) the said taxable person is eligible for input tax credit under this Act;
(v) the said taxable person is in possession of invoice and/or other prescribed documents
evidencing payment of duty / tax under the earlier law in respect of inputs held in stock
and inputs contained in semi- finished or finished goods held in stock on the appointed
day; and
(vi) such invoices and/or other prescribed documents were issued not earlier than
twelve months immediately preceding the appointed day.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ed or intended to be used for making taxable
supplies under this Act;
(ii) the said person is not paying tax under section 8;
(iii) the said taxable person was eligible to claim input tax credit on purchase of such
inputs and/or goods under the earlier law but for his being a composition taxpayer
under the said law;
(iv) the said taxable person is eligible for input tax credit under this Act;
(v) the said taxable person is in possession of invoice and/or other prescribed documents
evidencing payment of tax under the earlier law in respect of inputs held in stock and
inputs contained in semi- finished or finished goods held in stock on the appointed day;
and
(vi) such invoices and /or other prescribed documents were issued not earlier than
twelve months immediately preceding the appointed day.
Page 139 of 190
(2) The amount of credit under sub-section (1) shall be calculated in accordance with
generally accepted accounting principles in such manner as may be prescribed.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ded that after payment of such amount, the balance of input tax credit, if any lying
in his electronic credit ledger shall lapse.
(CGST Law)
(1) Where a taxable person who has carried forward the amount of eligible credit on
account of Value Added Tax in a return, furnished under the earlier law, in respect of
the period ending with the day immediately preceding the appointed day, switches over
to the composition scheme under section 8, he shall pay an amount, by way of debit in
the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax
in respect of inputs held in stock and inputs contained in semi-finished or finished goods
held in stock on the day immediately preceding the date of such switch over:
Provided that after payment of such amount, the balance of input tax credit, if any lying
in his electronic credit ledger shall lapse.
(SGST Law)
148. Exempted goods returned to the place of business on or after the
appointed day
Where any
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
od of six months from the appointed day and such goods are identifiable to
the satisfaction of the proper officer:
Provided that tax shall be payable by the person returning the goods if the said
goods are liable to tax under this Act and are returned after a period of six
months from the appointed day.
149. Duty paid goods returned to the place of business on or after the
appointed day
(1) Where any goods on which duty had been paid under the earlier law 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, no tax
shall be payable thereon if such goods are returned to the said place of business
within a period of six months from the appointed day and such goods are
identifiable to the satisfaction of the proper officer:
Provided that tax shall be payable by the taxable person returning the goods if the
said goods are liable to tax under this Act and are returned a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
at the time of sale.
(SGST Law)
Page 141 of 190
150. Inputs removed for job work and returned on or after the appointed
day
(1) Where any inputs received in a factory had been removed as such or removed
after being partially processed to a job worker for further processing, testing,
repair, reconditioning or any other purpose in accordance with the provisions of
earlier law prior to the appointed day and such inputs, after completion of the job
work, are returned to the said factory on or after the appointed day, no tax shall
be payable if such inputs are returned to the said factory within six months from
the appointed day:
Provided that the aforesaid period of six months may, on sufficient cause being
shown, be extended by the competent authority for a further period not exceeding
two months:
Provided further that tax shall be payable by the job worker if such inputs are
liable to tax under this Act, and are returned after a period of six months or the
extended peri
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
no tax shall be payable if such inputs are returned to the said
place of business within six months from the appointed day:
Provided that the aforesaid period of six months may, on sufficient cause being
shown, be extended by the competent authority for a further period not exceeding
two months:
Provided further that tax shall be payable by the job worker if such inputs are
liable to tax under this Act, and are returned after a period of six months or the
extended period, as the case may be, from the appointed day:
Page 142 of 190
Provided also that tax shall be payable by the person despatching the inputs if
such inputs are liable to tax under this Act, and are not returned within a period of
six months or the extended period, as the case may be, from the appointed day.
(2) The provisions of sub-section (1) shall apply only if the person despatching the
inputs and the job worker declare the details of the goods held in stock by the job
worker on behalf of the said person
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s Act and are returned after a period of six
months or the extended period, as the case may be, from the appointed day:
Provided also that tax shall be payable by the manufacturer if such goods are
liable to tax under this Act, and are not returned within a period of six months or
the extended period, as the case may be, from the appointed day:
Provided also that the manufacturer may, in accordance with the provisions of the
earlier law, transfer the said goods to the premises of any registered taxable
person for the purpose of supplying therefrom on payment of tax in India or
without payment of tax for exports within six months or the extended period, as
the case may be, from the appointed day.
(2) The provisions of sub-section (1) shall apply only if the manufacturer and the
job-worker declare the details of the goods held in stock by the job-worker on
behalf of the manufacturer on the appointed day in such form and manner and
within such time as may be prescribed.
(CGS
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e payable by the person despatching the goods if
such goods are liable to tax under this Act, and are not returned to him within a
period of six months or the extended period, as the case may be, from the
appointed day:
Provided also that the person despatching the goods may, in accordance with the
provisions of the earlier law, transfer the said goods to the premises of any
registered taxable person for the purpose of supplying therefrom on payment of
tax in India or without payment of tax for exports within six months or the
extended period, as the case may be, from the appointed day.
(2) The provisions of sub-section (1) shall apply only if the person despatching the
goods and the job worker declare the details of the goods held in stock by the job
worker on behalf of the said person on the appointed day in such form and
manner and within such time as may be prescribed.
(SGST Law)
152. Finished goods removed for carrying out certain processes and
returned on or after
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
from the appointed day:
Provided also that the manufacturer may, in accordance with the provisions of the
earlier law, transfer the said goods from the said other premises on payment of
Page 144 of 190
tax in India or without payment of tax for exports within six months or the
extended period, as the case may be, from the appointed day.
(CGST Law)
Where any goods had been despatched from the place of business without
payment of tax for carrying out tests or any other process, to any other premises,
whether registered or not, in accordance with the provisions of earlier law prior to
the appointed day and such goods, after undergoing tests or any other process
(herein after referred to as the “said goods”) are returned to the said place of
business on or after the appointed day, no tax shall be payable if the said goods
are returned to such place within six months from the appointed day:
Provided that the aforesaid period of six months may, on sufficient cause being
shown,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
oods and/or services
may issue to the recipient a supplementary invoice or debit note, containing such
particulars as may be prescribed, within thirty days of such price revision and for
the purposes of this Act such supplementary invoice or debit note shall be deemed
to have been issued in respect of an outward supply made under this Act.
(CGST Law)
(1) Where, in pursuance of a contract entered into prior to the appointed day, the
price of any goods is revised upwards on or after the appointed day, the taxable
person who had sold such goods may issue to the recipient a supplementary
invoice or debit note, containing such particulars as may be prescribed, within
thirty days of such price revision and for the purposes of this Act such
supplementary invoice or debit note shall be deemed to have been issued in
respect of an outward supply made under this Act.
(SGST Law)
Page 145 of 190
(2) Where, in pursuance of a contract entered into prior to the appointed day, the
price
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
plementary invoice or credit note, containing such particulars as may be
prescribed, within thirty days of such price revision and for the purposes of this
Act such supplementary invoice or credit note shall be deemed to have been
issued in respect of an outward supply made under this Act:
Provided that the taxable person shall be allowed to reduce his tax liability on
account of issue of the said invoice or credit note only if the recipient of the
invoice or credit note has reduced his input tax credit corresponding to such
reduction of tax liability.
(SGST Law)
154. Pending refund claims to be disposed of under earlier law
Every claim for refund of any duty/tax and interest, if any, paid on such duty/tax
or any other amount, filed by any person before the appointed day, shall be
disposed of in accordance with the provisions of earlier law and any amount
eventually accruing to him shall be paid in cash, notwithstanding anything to the
contrary contained under the provisi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 earlier law other than the provisions of
sub-section (2) of section 11B of the Central Excise Act, 1944 and shall not be
admissible as input tax credit under this Act.
(CGST Law)
(2) Every proceeding of appeal, revision, review or reference relating to recovery
of CENVAT credit under the earlier law shall be disposed of in accordance with the
provisions of earlier law, and if any amount of credit becomes recoverable as a
result of appeal, revision, review or reference, the same shall be recovered as an
arrear of tax under this Act and the amount so recovered shall not be admissible
as input tax credit under this Act.
(CGST Law)
(1) Every proceeding of appeal, revision, review or reference relating to a claim
for input tax credit under the earlier law shall be disposed of in accordance with
the provisions of earlier
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
recoverable as a result of such appeal, revision, review or reference, the same
shall be recovered as an arrear of tax under this Act and amount so recovered
shall not be admissible as input tax credit under this Act.
Page 147 of 190
(2) Every proceeding of appeal, revision, review or reference relating to any output
duty liability initiated before the appointed day, shall be disposed of in accordance
with the provisions of the earlier 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 earlier law other than the provisions of
sub-section (2) of section 11B of the Central Excise Act, 1944and shall not be
admissible as input tax credit under this Act.
(CGST Law)
(1) Every proceeding of appeal, revision, review or reference relating to any
output tax liability initiated before the appointed day, shall be disposed of in
accordance with the provisions of the e
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
able from the taxable
person, the same shall be recovered as an arrear of tax under this Act and the
amount so recovered shall not be admissible as input tax credit under this Act.
(CGST Law)
(1) Where in pursuance of an assessment proceedings instituted, whether before
or after the appointed day, under the earlier law, any amount of tax, interest, fine
or penalty becomes recoverable from the taxable person, the same shall be
recovered as an arrear of tax under this Act and the amount so recovered shall
not be admissible as input tax credit under this Act.
(SGST Law)
(2) Where in pursuance of an assessment or adjudication proceedings
instituted, whether before or after the appointed day, under the earlier law, any
amount of tax, interest, fine or penalty becomes refundable to the taxable person,
the same shall be refunded to him in cash under the earlier law, notwithstanding
anything to the contrary contained in the said law other than the provisions of
sub-section (2) o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
red as an arrear of tax under this Act and the
amount so recovered shall not be admissible as input tax credit under this Act.
(SGST Law)
(2) Where any return, furnished under the earlier law, is revised and if,
pursuant to such revision, any amount is found to be refundable to any taxable
person, the same shall be refunded to him in cash under the earlier 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.
(CGST Law)
(2) Where any return, furnished under the earlier law, is revised and if,
pursuant to such revision, any amount is found to be refundable to any taxable
person, the amount shall be refunded to the said person in accordance with the
provisions of the earlier law.
(SGST Law)
159. Treatment of long term construction / works contracts
The goods and/or services supplied on or after the appointed day in pursuance of
a contract entered into prior to th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
paid under the earlier law.
(SGST Law)
161. Treatment of retention payments
Notwithstanding anything contained in section 12 and 13, no tax shall be payable
on the supply of goods and/or services made before the appointed day where a
part consideration for the said supply is received on or after the appointed day,
but the full duty or tax payable on such supply has already been paid under the
earlier law.
(CGST Law)
Notwithstanding anything contained in section 12 and 13, no tax shall be payable
on the supply of goods and/or services made before the appointed day where a
part consideration for the said supply is received on or after the appointed day,
but the full duty or tax payable on such supply has already been paid under the
earlier law.
(SGST Law)
162. Credit distribution of service tax by ISD
Notwithstanding anything to the contrary contained in this Act, the input tax credit
on account of any services received prior to the appointed day by an Input Service
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
respect of such goods.
(Only in SGST Law)
162B. Tax paid on capital goods lying with agents to be allowed as credit
Where any capital goods belonging to the principal are lying at the premises of the
agent on the appointed day, the agent shall be entitled to take credit of the tax
paid on such capital goods subject to fulfillment of the following conditions:
(i)
the agent is a registered taxable person under this Act;
(ii) both the principal and the agent declare the details of the stock of capital
goods lying with such agent on the date immediately preceding the
appointed day in such form and manner and within such time as may be
prescribed in this behalf;
(iii) the invoices for such capital goods had been issued not earlier than twelve
months immediately preceding the appointed day; and
(iv) the principal has either not availed of the input tax credit in respect of such
capital goods or, having availed of such credit, has reversed the said credit,
to the extent availe
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ed after a period of six
months or the extended period, as the case may be, from the appointed day:
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 of six months or the extended period, as the case may be, from
the appointed day.
(SGST Law)
162 E. Deduction of tax source
Where a supplier has made any sale of goods in respect of which tax was required
to be deducted at source under the earlier law and has also issued an invoice for
the same before the appointed day, no deduction of tax at source under section
37 shall be made by the deductor under the said section where payment to the
said supplier is made on or after the appointed day.
Page 152 of 190
SCHEDULE I
MATTERS TO BE TREATED AS SUPPLY WITHOUT CONSIDERATION
1. Permanent transfer/disposal of business assets.
نه
Temporary application of business assets to a private or non-bu
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
services.
(2) Any lease or letting out of the building including a commercial, industrial or
residential complex for business or commerce, either wholly or partly, is a supply of
services.
3.
Treatment or process
Any treatment or process which is being applied to another person's goods is a
supply of services.
4.
(1)
Transfer of business assets
Where goods forming part of the assets of a business are transferred or disposed
of by or under the directions of the person carrying on the business so as no longer to
form part of those assets, whether or not for a consideration, such transfer or disposal is
a supply of goods by the person.
(2) Where, by or under the direction of a person carrying on a business, goods held
or used for the purposes of the business are put to any private use or are used, or made
available to any person for use, for any purpose other than a purpose of the business,
whether or not for a consideration, the usage or making available of such goods i
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
wholly or partly, except where the
Page 154 of 190
entire consideration has been received after issuance of completion certificate, where
required, by the competent authority or before its first occupation, whichever is earlier.
Explanation. For the purposes of this clause-
(1) the expression “competent authority” means the Government or any authority
authorized to issue completion certificate under any law for the time being in force and
in case of non-requirement of such certificate from such authority, from any of the
following, namely:-
(i) an architect registered with the Council of Architecture constituted under the
Architects Act, 1972; or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village or
development or planning authority;
(2) the expression “construction” includes additions, alterations, replacements or
remodeling of any existing civil struct
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ll be treated as supply of goods
(a) supply of goods by any unincorporated association or body of persons to a member
thereof for cash, deferred payment or other valuable consideration.
Page 155 of 190
1.
SCHEDULE III
LIABILITY TO BE REGISTERED
Every supplier shall be liable to be registered under this Act in the State from
where he makes a taxable supply of goods and/or services if his aggregate turnover in a
financial year exceeds [Rs nine lakh]:
1. Every supplier shall be liable to be registered under this Act in the State from
where he makes a taxable supply of goods and/or services if his aggregate turnover in a
financial year exceeds [Rs. four lakh]:
[This threshold of four lakh will apply only if the taxable person conducts his business in
any of the NE States including Sikkim.]
Provided that the supplier shall not be liable to registration if his aggregate turnover
consists of only goods and/or services which are not liable to tax under this Act.
Explanation 1.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
date of such transfer or succession.
4.
Notwithstanding anything contained in paragraph 1 and 2 above, 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 by an order of a High Court, the
transferee shall be liable to be registered, where required, 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.
5. Notwithstanding anything contained in paragraph 1 and 2 above, the following
categories of persons shall be required to be registered under this Act:
(i)
persons making any inter-State taxable supply, irrespective of the threshold
specified under paragraph 1;
(ii) casual taxable persons, irrespective of the threshold specified under paragraph 1;
(iii) persons who are required to pay tax under reverse charge, irrespective of the
threshold specified under paragraph 1;
Page 156 of 190
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nsactions in respect of which the Central Government, a State
Government or any Local Authority shall not be regarded as a taxable person
(Indicative List)
1.
Services provided by a Government or local authority to another Government or
local authority excluding the following services:
services by the Department of Posts by way of speed post, express parcel
post, life insurance and agency services;
services in relation to an aircraft or a vessel, inside or outside the
precincts of a port or an aircraft; or
(i)
(ii)
(iii)
transport of goods or passengers.
2.
Services provided by a Government or local authority to individuals in discharge
of its statutory powers or functions such as-
3.
(i)
(ii)
issuance of passport, visa, driving licence, birth certificate or death
certificate; and
assignment of right to use natural resources to an individual farmer for the
purpose of agriculture.
Services provided by a Government or local authority or a governmental authority
b
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
mance of a contract for which consideration in the form of
fines or liquidated damages is payable to the Government or the local authority
under such contract; or
assignment of right to use any natural resource where such right to use was
assigned by the Government or the local authority before the 1st April, 2016:
Provided that the exemption shall apply only to service tax payable on one time charge
payable, in full upfront or in installments, for assignment of right to use such natural
resource:
Explanation.- Periodic payment required to be made not exempt.
7.
8.
Services provided by Government by way of deputing officers after office hours or
on holidays for inspection or container stuffing or such other duties in relation to
import or export of cargo on payment of Merchant Overtime Charges (MOT).
Services provided by Government or a local authority by way of-
(i)
(ii)
registration required under any law for the time being in force; or
testing, calibration, safety
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
developmental abnormalities, injury or trauma.
3. Education services means services by way ofۥ
i) pre-school education and education up to higher secondary school or
equivalent;
ii) education as a part of a curriculum for obtaining a qualification recognised by
any law for the time being in force; or
iii) education as a part of an approved vocational education course.
Page 159 of 190
GST Valuation (Determination of the Value of Supply of Goods and Services)
Rules, 2016
1. Short title, commencement and application.
(1) These rules may be called the GST Valuation (Determination of Value of Supply of
Goods and Services) Rules, 2016.
(2)
These Rules shall come into force on the day the Act comes into force.
(3) They shall apply to the supply of goods and/or services under the
IGST/CGST/SGST Act.
2. Definitions
(1) In these rules, unless the context otherwise requires:
(a) “Act” means the IGST Act or the CGST Act or, as the case may be, the SGST Act;
(b) “goods of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
onsists of both taxable and non-taxable supply, the taxable
supply shall be deemed to be for such part of the monetary consideration as is
attributable thereto.
(4) The transaction value shall be accepted even where the supplier and recipient of
supply are related, provided that the relationship has not influenced the price.
(5) Where goods are transferred from-
(a) one place of business to another place of the same business,
(b) the principal to an agent or from an agent to the principal,
whether or not situated in the same State, the value of such supply shall be the
transaction value.
(6) The value of supplies specified in sub-section (4) of section 15 of the Act shall be
determined by proceeding sequentially through rules 4 to 6.
4. Determination of value of supply by comparison
(1) Where the value of a supply cannot be determined under rule 3, the value shall be
determined on the basis of the transaction value of goods and/or services of like kind
Page 160 of 190
a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nt towards profit and general expenses equal to that usually reflected in
supply of goods and/or services of the same class or kind as the goods and/or services
being valued which are made by other suppliers.
6. Residual method
Where the value of the goods and/or services cannot be determined under the provisions
of rule 5, the value shall be determined using reasonable means consistent with the
principles and general provisions of these rules.
7. Rejection of declared value
(1)(a) When the proper officer has reason to doubt the truth or accuracy of the value
declared in relation to any goods and/or services, he may ask the supplier to furnish
further information, including documents or other evidence and if, after receiving such
further information, or in the absence of any response from such supplier, the proper
officer still has reasonable doubt about the truth or accuracy of the value so declared, it
shall be deemed that the transaction value of such goods and/or servi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
reasonable opportunity of being heard, before taking a
final decision under sub-rule (1).
(3) If after hearing the supplier as aforesaid, the proper officer is, for reasons to be
recorded in writing, not satisfied with the value declared, he shall proceed to determine
the value in accordance with the provisions of rule 4 or rule 5 or rule 6, proceeding
sequentially.
Explanation. For removal of doubts, it is hereby declared that this rule by itself does not
provide a method for determination of value. It provides a mechanism and procedure
for rejection of declared value in cases where there is reasonable doubt that the declared
value does not represent the transaction value.
8. Valuation in certain cases
(1) Pure Agent
(a) Notwithstanding anything contained in these rules, the expenditure or costs incurred
by the service provider as a pure agent of the recipient of service, shall be excluded from
the value of the taxable service if all the following conditions are satisfi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
iii) the goods and/or services procured by the service provider from the third party as
a pure agent of the recipient of service are in addition to the services he provides on his
own account.
Explanation.- For the purposes of this sub-rule, “pure agent” means a person who-
(a) enters into a contractual agreement with the recipient of service to act as his pure
agent to incur expenditure or costs in the course of providing taxable service;
(b) neither intends to hold nor holds any title to the goods and/or services so procured
or provided as pure agent of the recipient of service;
(c) does not use such goods and/or services so procured; and
(d) receives only the actual amount incurred to procure such goods and/or services.
Page 162 of 190
(2) Money Changer
The value of taxable service provided for the services in so far as it pertains to purchase
or sale of foreign currency, including money changing, shall be determined by the
service provider in the following
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
0
PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES
IN THE COURSE OF INTER-STATE TRADE OR COMMERCE
Supplies of goods and/or services in the course of inter-State trade or commerce
CHAPTER- III
LEVY AND COLLECTION OF TAX
Levy and collection of Integrated Goods and Services Tax
CHAPTER- IV
PLACE OF SUPPLY OF GOODS AND/OR SERVICES
5.
Place of supply of goods
6.
Place of supply of services
CHAPTER-V
PAYMENT OF TAX
7.
Payment of tax, interest, penalty and other amounts
8.
CHAPTER- VI
INPUT TAX CREDIT
Claim of input tax credit and provisional acceptance, matching, reversal and re-
claim thereof
9.
Transfer of input tax credit
CHAPTER- VII
APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS
10. Apportionment of tax collected under the Act and settlement of funds
CHAPTER – VIII
SETTLEMENT OF CASES
Page 164 of 190
11. Definitions
12. Constitution of National Goods and Services Tax Settlement Commission
13. Jurisdiction and powers of Settlement Commission
14. D
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ONAL PROVISIONS
Import of services or inter-state supply of goods and/or services made on
or after the appointed day
32.
33.
CHAPTER- XI
ADMINISTRATION
Page 165 of 190
Classes of officers under the Integrated Goods and Services Tax Act, 2016
Appointment of officers under the Integrated Goods and Services Tax Act, 2016
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2016
CHAPTER- I
Page 166 of 190
1.
(1)
(2)
(3)
PRELIMINARY
Short title, extent and commencement
This Act may be called the Integrated Goods and Services Tax Act, 2016.
It extends to the whole of India.
It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint, and different dates may be appointed for
different provisions of this Act.
2.
Definitions
(1) In this Act, unless the context otherwise requires,-
(a) “appropriate State”, in relation to a taxable person, means that State where he
is registered or liable to be registered under section 19
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d to be used, in the course or furtherance of his business and includes the tax
payable under sub-section (3) of section 4;
(e) “input tax credit” means credit of 'input tax' as defined in clause (d) of sub-
section (1) of section 2;
(f)
2016;
“supply” has the same meaning as assigned to it in section 3 of the CGST Act,
(g) “output tax” in relation to a taxable person, means the IGST chargeable under the
Act on taxable supply of goods and/or services by him or his agent and excludes tax
payable by him on reverse charge basis;
Page 167 of 190
(2) Words and expressions not defined in this Act shall have the meaning assigned to
them in the Central Goods and Service Tax Act, 2016.
Page 168 of 190
CHAPTER- II
PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE
COURSE OF INTER-STATE TRADE OR COMMERCE
3.
Supplies of goods and/or services in the course of inter-State trade or
commerce
(1)
Subject to the provisions of section 5, supply of goods in the course o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
lies of goods and/or services made in the course of inter-State trade or commerce
at the rate specified in the Schedule to this Act and collected in such manner as may be
prescribed.
(2)
The Integrated Goods and Services Tax shall be paid by every taxable person in
accordance with the provisions of this Act.
(3)
Notwithstanding anything contained in sub-section (2), the Central Government
may, on recommendation of the Council, by notification, specify categories of supply of
goods and/or services the tax on which is payable on reverse charge basis and the tax
thereon shall be paid by the person receiving such goods and/or services and all the
provisions of this Act shall apply to such person as if he is the person liable for paying
the tax in relation to such goods and/or services.
(4)
Notwithstanding anything contained in sub-section (1) but subject to such
conditions as may be notified in this behalf, no tax under this Act shall be payable by any
taxable person in res
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
(3) Where the supply does not involve movement of goods, whether by the supplier
or the recipient, the place of supply shall be the location of such goods at the time of the
delivery to the recipient.
(4) Where the goods are assembled or installed at site, the place of supply shall be
the place of such installation or assembly.
(5) Where the goods are supplied on board a conveyance, such as a vessel, an
aircraft, a train or a motor vehicle, the place of supply shall be the location at which such
goods are taken on board.
(6) Where the place of supply of goods cannot be determined in terms of sub-section
(2), (3), (4) and (5), the same shall be determined by law made by the Parliament in
accordance with the recommendation of the Council.
6. Place of supply of services
(1)
The provisions of this section shall apply to determine the place of supply of
services.
(2)
The place of supply of services, except the services specified in sub-sections (4),
(5), (6), (7), (8), (9
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r
(c) by way of accommodation in any immovable property for organizing any marriage
or reception or matters related therewith, official, social, cultural, religious or business
function including services provided in relation to such function at such property, or
(d) any services ancillary to the services referred to in clause (a), (b) and (c),
shall be the location at which the immovable property or boat or vessel is located or
intended to be located.
Explanation. Where the immovable property or boat or vessel is located in more than
one State, the supply of service shall be treated as made in each of the States in
proportion to the value for services separately collected or determined, in terms of the
contract or agreement entered into in this regard or, in the absence of such contract or
agreement, on such other reasonable basis as may be prescribed in this behalf.
(5) The place of supply of restaurant and catering services, personal grooming,
fitness, beauty treatment,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s ancillary to organization of any of the above events or services, or
assigning of sponsorship of any of the above events,
to
(i) a registered person, shall be the location of such person;
(ii) a person other than a registered person, shall be the place where the event is
actually held.
Explanation. Where the event is held in more than one State and a consolidated amount
is charged for supply of services relating to such event, the place of supply of such
services shall be taken as being in the each of the States in proportion to the value of
services so provided in each State as ascertained from the terms of the contract or
agreement entered into in this regard or, in absence of such contract or agreement, on
such other reasonable basis as may be prescribed in this behalf.
(9)
The place of supply of services by way of transportation of goods, including by
mail or courier to,
(a)
a registered person, shall be the location of such person;
Page 172 of 190
(b)
a person
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of the first scheduled point of departure of
that conveyance for the journey.
(12) The place of supply of telecommunication services including data transfer,
broadcasting, cable and direct to home television services to any person shall—
(a) in case of services by way of fixed telecommunication line, leased circuits,
internet leased circuit, cable or dish antenna, be the location where the
telecommunication line, leased circuit or cable connection or dish antenna is installed for
receipt of services;
(b) in case of mobile connection for telecommunication and internet services provided
on post-paid basis, be the location of billing address of the recipient of services on record
of the supplier of services;
(c) in cases where mobile connection for telecommunication and internet service are
provided on pre-payment through a voucher or any other means, be the location where
such pre-payment is received or such vouchers are sold:
Provided that if such pre-paid service
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tifiable States, shall be
taken as located in each of such States and the value of such supplies specific to each
Page 173 of 190
State shall be in proportion to amount attributable to service provided by way of
dissemination in the respective States as may be determined in terms of the contract or
agreement entered into in this regard or, in the absence of such contract or agreement,
on such other reasonable basis as may be prescribed in this behalf.
CHAPTER-V
PAYMENT OF TAX
Page 174 of 190
7. Payment of tax, interest, penalty and other amounts
(1) Every deposit made towards tax, interest, penalty, fee or any other amount by a
taxable person by internet banking or by using credit/debit cards or National Electronic
Fund Transfer or Real Time Gross Settlement or by any other mode, subject to such
conditions and restrictions as may be prescribed in this behalf, shall be credited to the
electronic cash ledger of such person to be maintained in the manner as may be
prescrib
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ledger shall first be utilized towards payment of IGST and the amount remaining,
if any, may be utilized towards the payment of CGST and SGST, in that order.
(b) The amount of input tax credit on account of CGST available in the electronic credit
ledger shall first be utilized towards payment of CGST and the amount remaining, if any,
may be utilized towards the payment of IGST.
(c) The amount of input tax credit on account of SGST available in the electronic
credit ledger shall first be utilized towards payment of SGST and the amount remaining,
if any, may be utilized towards the payment of IGST.
(6) The balance in the cash or credit ledger after payment of tax, interest, penalty,
fee or any other amount payable under the Act or the rules made thereunder may be
refunded in accordance with the provisions of section 38 of the CGST Act and the
amount collected as IGST shall stand reduced to that extent.
(7)
All liabilities of a taxable person under this Act shall be recorded
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
y be prescribed in this behalf, be entitled to take credit of input tax, as self-
assessed, in his return and such amount shall be credited, on a provisional basis, to his
electronic credit ledger to be maintained in the manner as may be prescribed.
(2) The provisions of section 29 of the CGST Act, 2016 relating to matching, reversal and
reclaim of input tax credit shall apply mutatis mutandis to the matching, reversal and
reclaim of input tax credit under this section.
9.
Transfer of input tax credit
(1) On utilization of input tax credit availed under this Act for payment of tax dues
under the CGST Act as per sub-section (5) of section 7, the amount collected as IGST
shall stand reduced by an amount equal to the credit so utilized and the Central
Government shall transfer an amount equal to the amount so reduced from the IGST
account to the CGST account in the manner and time as may be prescribed.
(2)
On utilization of input tax credit availed under this Act for payment
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
to a registered taxable person, where such
taxable person is either not eligible for input tax credit or where he does not avail of the
said credit within the specified period and thus remains in the IGST account after expiry
of the due date for filing of annual return for such year in which the supply was made,
the amount of tax calculated at the rate equivalent to the CGST on similar intra-state
supply shall be apportioned to the Central Government.
(3)
Out of the IGST paid to the Central Government in respect of import of goods and
/ or services by an unregistered person or by a taxable person paying tax under section
8 of the CGST Act, the amount of tax calculated at the rate equivalent to the CGST on
similar intra-state supply shall be apportioned to the Central Government.
(4) Out of the IGST paid to the Central Government in respect of import of goods and
/ or services made in a year by a registered taxable person, where the such taxable
person is either not eligib
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t or a State
Government under sub-sections (1), (2), (3), (4), (5) and (6), the amount collected as
IGST shall stand reduced by an amount equal to the amount so apportioned and the
Central Government shall transfer to the CGST account an amount equal to an amount
apportioned to the Central Government and shall transfer to the SGST account of the
State an amount equal to an amount apportioned to that State, in the manner and time
as may be prescribed.
11. Definitions
CHAPTER- VIII
SETTLEMENT OF CASES
Page 178 of 190
(a) “Bench” means a Bench of the Settlement Commission;
(b) “case” means any proceeding under this Act for the levy, assessment and collection
of IGST before an IGST officer, or before a First Appellate Authority in connection with
such levy, assessment or collection of IGST pending on the date on which an application
under sub-section (1) of section 15 is made:
Provided that where an order is passed by an adjudicating authority and for which
the appeal peri
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
” means the National Goods and Services Tax Settlement
Commission constituted under section 12.
12. Constitution of National Goods and Services Tax Settlement Commission
(1)
The Central Government shall on the recommendation of the Council constitute a
National Goods and Services Tax Settlement Commission for settlement of cases under
this Act.
(2)
(3)
The Settlement Commission shall be headed by a National Chairman.
The Settlement Commission shall have one bench for one or more states, which
shall be called the State Settlement Commission.
(4)
(5)
Every State Settlement Commission shall be headed by a State Chairman.
Every State Settlement Commission shall consist of a Chairman and as many
Members (Technical -IGST) as may be prescribed, to exercise the powers and discharge
the functions conferred on the Settlement Commission by this Act.
Page 179 of 190
(6) The National Chairman/State Chairman shall be a person who is or has been a judge
of the High Court.
(7) The
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
, illness or any other
cause or in the event of the occurrence of any vacancy either in the office of the
presiding officer or in the office of one or the other Members of the Bench, the remaining
Members may function as the Bench and if the presiding officer of the Bench is not one
of the remaining Members, the senior among the remaining Members shall act as the
presiding officer of the Bench.
14. Decisions to be by majority
(1) If the Members of a Bench differ in opinion on any point, the point shall be decided
according to the opinion of the majority.
(2) In a case where the decision is taken by a two member Bench as provided under
sub-section (3) of section 13 and Members are equally divided, the matter will be
referred to the third Member and the decision will be according to the opinion of the
majority.
15. Application for settlement of cases
(1) A taxable person may, in respect of a case or identical cases involving periodical
show cause notices relating to him an
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ending before the First Appellate Authority;
(c) the additional amount of tax accepted by the applicant in his application exceeds
five lakh rupees; and
(d) the applicant has paid the additional amount of tax accepted by him along with
interest due thereon under section 36 of the CGST Act:
Provided further that the Settlement Commission, if it is satisfied that the circumstances
exist for not filing the return(s) referred to in clause (a) of the first proviso to sub-
section (1), may, after recording the reasons thereof, allow the applicant to make such
application.
(2) No application shall be entertained by the Settlement Commission under sub-section
(1) in cases which are pending with the Appellate Tribunal or any Court.
(3) No application under sub-section (1) shall be made for determination of any
question having a bearing on the rate of tax or determination of liability to pay tax on
goods and/or services under the Act.
(4) Every application made under sub-section (1
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
o the applicant of being heard;
Provided further that where no notice has been issued or no order has been passed
within the aforesaid period by the Settlement Commission, the application shall be
deemed to have been allowed to be proceeded with.
(2) A copy of every order under sub-section (1), shall be sent to the applicant and to the
jurisdictional IGST officer.
(3) Where an application is allowed under sub-section (1), the Settlement Commission
shall, within seven days from the date of order under sub-section (1), call for a report
along with the relevant records from the jurisdictional IGST officer and such officer shall
furnish the report within a period of sixty days of the receipt of communication from the
Settlement Commission:
Provided that where the jurisdictional IGST officer does not furnish the report within the
aforesaid period of sixty days, the Settlement Commission shall proceed further in the
matter without the report of the said officer.
(4) After exami
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d to the jurisdictional
IGST officer to be heard, either in person or through an authorised representative, and
after examining such further evidence as may be placed before it or obtained by it, the
Settlement Commission may pass such order as it thinks fit on the matters covered by
the application and any other matter relating to the case not covered by the application,
but referred to in the report of the jurisdictional IGST officer and Designated Officer
under sub-section (3) or sub-section (4), as the case may be.
Explanation. For the purposes of this sub-section, “authorised representative” shall have
the meaning assigned to it in section 86 of the CGST Act.
Page 182 of 190
(6) An order under sub-section (5) shall not be passed in respect of an application after
twelve months from the last day of the month in which the application was made, failing
which the settlement proceedings shall abate, and the adjudicating authority or the First
Appellate Authorit
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the manner in which any
sums due under the settlement shall be paid and all other matters to make the
settlement effective and in case of rejection contain the reasons therefor:
Provided that the amount of settlement ordered by the Settlement Commission shall not
be less than the tax liability admitted by the applicant under section 15.
(9) Settlement arrived under sub-section (5) shall be void if it is subsequently found by
the Settlement Commission that it has been obtained by fraud or misrepresentation of
facts.
(10) Where any tax, interest, fine and penalty payable in pursuance of an order under
sub-section (5) is not paid by the taxpayer within thirty days of receipt of a copy of the
order by him, or within such period as extended by the Settlement Commission not
exceeding three months, the amount which remains unpaid, shall be recovered along
with interest due thereon at the rate prescribed under section 36 of the CGST Act, as the
sums due to the Central/ State Gover
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
, by order, attach provisionally any property belonging to the
applicant in the manner as may be prescribed.
(2) Every provisional attachment made by the Settlement Commission under sub-
section (1) shall cease to have effect from the date, the sums due to the Central
Government the State Government for which such attachment is made are discharged
by the applicant and evidence to that effect is submitted to the Settlement Commission.
18. Power of Settlement Commission to reopen completed proceedings
If the Settlement Commission is of the opinion (the reasons for such opinion to be
recorded by it in writing) that, for the proper disposal of the case pending before it, it is
necessary or expedient to reopen any proceeding connected with the case but which has
been completed under this Act before application for settlement under section 15 was
made, it may, with the concurrence of the applicant, reopen such proceeding and pass
such order thereon as it thinks fit, as if the cas
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ue disclosure of his
tax liability, grant to such person, subject to such conditions as it may think fit to
impose, immunity from prosecution for any offence under this Act and also either wholly
Page 184 of 190
or in part from the imposition of any penalty and fine under this Act, with respect to the
case covered by the settlement :
Provided that no such immunity shall be granted by the Settlement Commission in cases
where the proceedings for the prosecution for any such offence have been instituted
before the date of receipt of the application under section 15.
(2) An immunity granted to a person under sub-section (1) shall stand withdrawn if such
person fails to pay any sum specified in the order of the settlement passed under sub-
section (5) of section 16 within the time specified in such order or within such extended
period as permitted by the Settlement Commission or fails to comply with any other
condition subject to which the immunity was granted and thereupon the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
edings before it, send the case back to the jurisdictional IGST
officer or the First Appellate Authority, as the case may be, who shall thereupon dispose
of the case in accordance with the provisions of this Act as if no application under section
15 had been made.
(2) For the purpose of sub-section (1), the jurisdictional IGST Officer or the First
Appellate Authority, as the case may be, shall be entitled to use all the materials and
other information produced by the taxable person before the Settlement Commission or
the results of the inquiry held or evidence recorded by the Settlement Commission in the
course of the proceedings before it as if such materials, information, inquiry and
evidence had been produced before such IGST Officer or the First Appellate Authority, as
the case may be, or held or recorded by him in the course of the proceedings before
him.
Page 185 of 190
(3) For the purposes of the time limit under section 51 or section 79, as the case may
be, of the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ttlement under sub- section (5) of section 16, in
relation to a case, such person is convicted of any offence under this Act in relation to
that case; or
(ii) the case of such person is sent back to the jurisdictional IGST Officer or the First
Appellate Authority, as the case may be, by the Settlement Commission under section
21;
then, he shall not be entitled to apply for settlement under section 15 in relation to any
other matter.
(2) No person shall be allowed to avail of the facility of settlement under this Chapter
more than twice.
24. Rectification of mistakes by Settlement Commission
The Settlement Commission may amend any order passed by it under section 16 so as
to rectify any mistake apparent from the record, if such mistake is noticed by the
Settlement Commission on its own accord, or is brought to its notice by the
jurisdictional IGST officer or the applicant within a period of three months from the
date of the order:
Provided that no rectification, which ha
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
l be
deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for
the purpose of section 196, of the Indian Penal Code (45 of 1860).
26. Procedure of Settlement Commission
The Settlement Commission shall, subject to the provisions of this Chapter, have power
to regulate its own procedure in all matters arising out of the exercise of its powers
under the Act.
CHAPTER- IX
MISCELLANEOUS
Page 187 of 190
27.
Application of certain provisions of the CGST Act, 2016
The provisions relating to registration, valuation, time of supply of goods, time of supply
of services, change in rate of tax in respect of supply of services, exemption from
payment of tax, input tax credit and utilization thereof, accounts and records, payment,
return, audit, assessment, adjudication, demands, refunds, interest, recovery of tax,
offences and penalties, inspection, search and seizure, prosecution and power to arrest,
appeals, review, advance ruling and compounding shall
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
erest at such rate as may be
notified, on the recommendation of the Council, by the Central Government.
(2) The interest under sub-section (1) shall be calculated from the first day such tax was
due to be paid.
(3) In case a taxable person makes an undue or excess claim of input tax credit under
sub-section (10) of section 29 of the CGST Act, he shall be liable to pay interest on such
undue or excess claim at the prescribed rate for the period computed in the manner
prescribed.
30. Tax wrongfully collected and deposited with the Central or a State
Government
A taxable person who has paid IGST on a transaction considered by him to be an inter-
state supply, but which is subsequently held to be an intra-state supply, shall, upon
payment of CGST and SGST in the appropriate State, be allowed to take the amount of
IGST so paid as refund subject to the provisions of section 38 of the CGST Act, 2016 and
such other conditions as may be prescribed.
CHAPTER- X
TRANSITIONAL PROVIS
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
day if either the invoice relating to such supply or
payment, either in full or in part, has been received or made before the appointed day.
32.
CHAPTER- XI
ADMINISTRATION
Page 189 of 190
Classes of officers under the Integrated Goods and Services Tax Act,
2016
There shall be the following classes of officers under the Integrated Goods and
Services Tax Act, 2016 namely;
(1)
(a)
Principal Chief Commissioners of IGST or
Principal Directors General of IGST,
(b)
Chief Commissioners of IGST or
Directors General of IGST,
(c)
Principal Commissioners of IGST or
Principal Additional Directors General of IGST,
(d)
Commissioners of IGST or
Additional Directors General of IGST,
(e)
First Appellate Authority
(f)
Additional Commissioners of IGST or
Additional Directors of IGST,
(g)
Joint Commissioners of IGST or
Joint Directors of IGST,
(h)
Deputy Commissioners of IGST or
Deputy Directors of IGST,
(i)
Assistant Commissioners of IGST or
Assistant Directors of IGST
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =