General power to make regulations. – Section 23 – Acts – MISCELLANEOUS – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 23 – General power to make regulations. 23. The Board may, by notifi
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Section 22 – Acts – MISCELLANEOUS – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 22 – Power to make rules. 22. (1) The Central Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act. (2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which p
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Section 21 – Acts – MISCELLANEOUS – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 21 – CHAPTER IX MISCELLANEOUS Application of provisions of Central Goods and Services Tax Act. 21. Subject to the provisions of this Act and the rules made thereunder, the provisions of the Central Goods and Services Tax Act, relating to,- (i) scope of supply; (ii) composition levy; (iii) composite supply and mixed supply; (iv) time and value of supply; (v) input tax credit; (vi) registration; (vii) tax invoice, credit and debit notes; (viii) accounts and records; (ix) returns; (x) payment of tax; (xi) tax deduction at source; (xii) collection of tax at source; (xiii) assessment; (xiv) refunds; (xv) audit; (xvi) inspection, search, seizure and ar
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s, namely:- (i) references to this Act shall be deemed to be references to the Union Territory Goods and Services Tax Act, 2017 ; (ii) references to Commissioner shall be deemed to be references to Commissioner of Union territory tax as defined in clause (2) of section 2 of this Act; (iii) references to officers of central tax shall be deemed to be references to officers of Union territory tax ; (iv) references to central tax shall be deemed to be references to Union territory tax and vice versa; (v) references to Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be references to Commissioner of central tax ; (vi) references to State Goods and Services tax Act or Union Territory Goods and Services Tax Act s
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Section 20 – Acts – TRANSITIONAL PROVISIONS – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 20 – Miscellaneous transitional provisions. 20. (1) Where any goods on which tax, if any, had been paid under the existing law at the time of sale thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the tax paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer: Provided that if the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply. (2) (a) Where, in pursuance of a contract entered into prior to the appointed day, the price of any goods is revised upwards on or after the appointed day, th
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e has reduced his input tax credit corresponding to such reduction of tax liability. (3) Every claim for refund filed by any person before, on or after the appointed day, for refund of any amount of input tax credit, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be refunded to him in cash in accordance with the provisions of the said law: Provided that where any claim for refund of the amount of input tax credit is fully or partially rejected, the amount so rejected shall lapse: Provided further that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this Act. (4) Every claim for refund filed after the appointed day for refund of any tax paid under the existing law in respect of the goods exported before or after the appointed day shall be disposed of
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d day has been carried forward under this Act. (b) Every proceeding of appeal, revision, review or reference relating to recovery of input tax credit initiated whether before, on or after the appointed day, under the existing law shall be disposed of in accordance with the provisions of the existing law, and if any amount of credit becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (6) (a) Every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under
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recovered shall not be admissible as input tax credit under this Act. (b) Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (8) (a) Where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of input tax credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (b) Where any return, furnished under the existing law, is revised after the appointed day but within the time limi
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on the said services under Chapter V of the Finance Act, 1994 (32 of 1994). (c) Where tax was paid on any supply, both under any existing law relating to sale of goods and under Chapter V of the Finance Act, 1994, (32 of 1994.) tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. (11) Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day: Provided that the said period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that the t
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Section 19 – Acts – TRANSITIONAL PROVISIONS – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 19 – Transitional provisions relating to job work. 19. (1) Where any inputs received at a place of business had been desptached as such or desptached after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on suffici
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or after the appointed day, no tax shall be payable if the said goods, after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that if the said goods are not returned within a period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services Tax Act: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, t
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inted day: Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that if the said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services Tax Act: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods from the said other premises 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 th
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Section 18 – Acts – TRANSITIONAL PROVISIONS – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 18 – Transitional arrangements for input tax credit. 18. (1) A registered person, other than a person opting to pay tax under section 10 of the Central Goods and Services Tax Act, shall be entitled to take, in his electronic credit ledger, credit of the amount of Value Added Tax and Entry Tax, if any, carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law, not later than ninety days after the said day, in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:- (i) where the said amount of credit is not admissible as input tax credit under this Act; or (ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed d
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tled to take, in his electronic credit ledger, credit of the unavailed input tax credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit unless the said credit was admissible as input tax credit under the existing law and is also admissible as input tax credit under this Act. Explanation.-For the purposes of this section, the expression unavailed input tax credit means the amount that remains after subtracting the amount of input tax credit already availed in respect of capital goods by the taxable person under the existing 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 existing law. (3) A registered person, who was not liable to be registered under the existing law
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isting law in respect of such inputs; and (iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day: Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of tax in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed. (4) A registered person, who was engaged in the sale of taxable goods as well as exempted goods or tax free goods under the existing law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger,- (a) the amount of credit of the value added tax and entry tax, if a
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e Commissioner for a further period not exceeding thirty days: Provided further that the said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this sub-section. (6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of 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, namely:- (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said registered person is not paying tax under section 10 of the Central Goods and Services Tax Act; (iii) the said registered person is eligible for input tax credit on such inputs under this Act; (iv) the said registered person is in possession of
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Section 17 – Acts – TRANSITIONAL PROVISIONS – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 17 – CHAPTER VIII TRANSITIONAL PROVISIONS Migration of existing tax payers. 17. (1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final ce
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Section 16 – Acts – ADVANCE RULING – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 16 – Constitution of Appellate Authority for Advance Ruling. 16. (1) The Central Government shall, by notification, constitute an Appellate Authority to be known as the (name of the Union territory) Appellate Authority for Advance Ruling for Goods and Services Tax for hearing appeals against the advance ruling pronounced by the Advance Ruling Authority: Provided that the Central Government may, on th
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Section 15 – Acts – ADVANCE RULING – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 15 – Constitution of Authority for Advance Ruling. 15. (1) The Central Government shall, by notification, constitute an Authority to be known as the (name of the Union territory), Authority for Advance Ruling: Provided that the Central Government may, on the recommendations of the Council, notify any Authority located in any State or any other Union territory to act as the Authority for the purposes
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Section 14 – Acts – ADVANCE RULING – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 14 – CHAPTER VII ADVANCE RULING Definitions. 14. In this Chapter, unless the context otherwise requires,- (a) advance ruling means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 of the Central Goods and Services Tax Act, in relation to the supply of goods or service
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Section 13 – Acts – DEMANDS AND RECOVERY – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 13 – Recovery of tax. 13. (1) Where any amount of tax, interest or penalty is payable by a person to the Government under any of the provisions of this Act or the rules made thereunder and which remains unpaid, the proper officer of central tax, during the course of recovery of said tax arrears, may recover the amount from the said person as if it were an arrear of central tax and credit the am
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Section 12 – Acts – DEMANDS AND RECOVERY – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 12 – CHAPTER VI DEMANDS AND RECOVERY Tax wrongfully collected and paid to Central Government or Union territory Government 12. (1) A registered person who has paid the central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and
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Section 11 – Acts – INSPECTION, SEARCH, SEIZURE AND ARREST – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 11 – CHAPTER V INSPECTION, SEARCH SEIZURE AND ARREST Officers required to assist proper officers 11. (1) All officers of Police, Railways, Customs, and those officers engaged in the collection of land revenue, including village officers, and officers of central tax and officers of the State tax shall assist the proper officers in the implementation of this Act. (2) The Governm
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Section 10 – Acts – PAYMENT OF TAX – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 10 – Transfer of input tax credit. 10. On utilisation of input tax credit of Union territory tax for payment of tax dues under the Integrated Goods and Services Tax Act in accordance with the provisions of sub-section (5) of section 49 of the Central Goods and Services Tax Act, as reflected in the valid return furnished under sub-section (1) of section 39 of the Central Goods and Services Tax Act, th
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Section 9 – Acts – PAYMENT OF TAX – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 9 – CHAPTER IV PAYMENT OF TAX Payment of tax. 9. The amount of input tax credit available in the electronic credit ledger of the registered person on account of,- (a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order; (b) t
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Section 8 – Acts – LEVY AND COLLECTION OF TAX – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 8 – Power to grant exemption from tax. 8. (1) Where the Central Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification. (2) Where the Central Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order
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Section 7 – Acts – LEVY AND COLLECTION OF TAX – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 7 – CHAPTER III LEVY AND COLLECTION OF TAX Levy and collection. 7. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the Union territory tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding twenty per cent., as may be notified by the Central Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. (2) The Union territory tax on the s
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otification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.] (5) The Central Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to su
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Section 6 – Acts – ADMINISTRATION – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 6 – Authorisation of officers of central tax as proper officer in certain circumstances. 6. (1) Without prejudice to the provisions of this Act, the officers appointed under the Central Goods and Services Tax Act are authorised to be the proper officers for the purposes of this Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify. (2)
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Section 5 – Acts – ADMINISTRATION – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 5 – Powers of officers. 5. (1) Subject to such conditions and limitations as the Commissioner may impose, an officer of the Union territory tax may exercise the powers and discharge the duties conferred or imposed on him under this Act. (2) An officer of a Union territory tax may exercise the powers and discharge the duties conferred or imposed under this Act on any other officer of a Union territory
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Authorisation of officers. – Section 4 – Acts – ADMINISTRATION – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 4 – Authorisation of officers. 4. The Administrator may, by order, authorise
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Section 3 – Acts – ADMINISTRATION – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 3 – CHAPTER II ADMINISTRATION Officers under this Act. 3. The Administrator may, by notification, appoint Commissioners and such other class of officers as may be required for carrying out the purposes of this Act and such officers shall be deemed to be proper officers for such purposes as may be specified therein: Provided that the officers appointed under the existing law shall be deemed to be the o
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Section 2 – Acts – PRELIMINARY – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 2 – Definitions. 2. In this Act, unless the context otherwise requires,- (1) appointed day means the date on which the provisions of this Act shall come into force. (2) Commissioner means the Commissioner of Union territory tax appointed under section 3; (3) designated authority means such authority as may be notified by the Commissioner; (4) exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be exempt from tax under section 8, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; (5) existing law means any law, notification, order, rule or regulation re
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Section 1 – Acts – PRELIMINARY – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 1 – THE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017 No. 14 of 2017 Dated: 12th April 2017 An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Union territories and the matter connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:- CHAPTER I PRELIMINARY Short
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MEMO – Acts – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – MEMO – MEMORANDUM REGARDING DELEGATED LEGISLATION Clause 164 of the Central Goods and Services Bill, 2017 seeks to empower the Central Government to make rules, inter alia, in the following matters, namely:- (a) collection of taxes under section 9; (b) restrictions and conditions applicable to person opting for composition levy on under section 10; (c) value of the supply of goods or services or both under section 15; (d) conditions and restrictions on availing input tax credit and categories of tax paying documents under section 16; (e) depreciation on capital goods and plant and machinery as specified under section 18; (f) conditions and restrictions to allow input tax credit on inputs sent to a job-worker for job-work under section 19; (g) conditions and restrictions to allow input tax credit on capital goods sent to a job worker for job work under section 19; (h) manner of distribution of input tax credit by input service d
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tax under section 50; (t) manner in which tax is to be deducted at source under section 51; (u) manner in which tax is to be collected at source under section 52; (v) manner and time for transfer of input tax credit under section 53; (w) form and manner in which application of refund is to be made under section 54; (x) condition and restrictions on refund in certain cases under section 55; (y) manner in which consumer welfare fund is to be constituted under section 57; (z) manner in which consumer welfare fund is to be utilised under section 58; (za) form in which a bond for provisional assessment is to be filed under section 60; (zb) manner in which returns are to be scrutinised under section 61; (zc) frequency and manner in which audit will be taken by tax authorities under section 65; (zd) manner in which advance ruling pronounced is to be certified under section 98; (ze) form, manner and fee for appeal to Appellate Authority under section 100; (zf) manner in which Advance Ruling p
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ide for any matter which is required to be, or may be, specified by regulation or in respect of which provision is to be made by regulations. 3. The matters in respect of which the said rules and regulations may be made are matters of procedure and administrative detail, and as such, it is not practicable to provide for them in the proposed Bill itself. The delegation of legislative power is, therefore, of a normal character. FINANCIAL MEMORANDUM Clause 53 of the Bill provides for apportionment of tax and settlement of funds on account of transfer of utilisation of input tax credit under this Bill for the payment of tax dues under the integrated goods and services tax by the Central Government. 2. Clause 96 of the Bill provides for the establishment of an Authority for Advance Ruling under the State Goods and Services Tax Act or Union Territory Goods and Services Tax Act and adoption of the same under the Central Goods and Services Tax Act. 3. Clause 99 of the Bill provides for the est
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the proposed Legislation would be borne by the Central Government. Most of the existing officers and staff of the Central Board of Excise and Customs would be used for carrying out the various functions under the Bill. However, it is not possible to estimate the exact recurring and non-recurring expenditure from the Consolidated Fund of India at this stage. STATEMENT OF OBJECTS AND REASONS Presently, the Central Government levies tax on, manufacture of certain goods in the form of Central Excise duty, provision of certain services in the form of service tax, inter-State sale of goods in the form of Central Sales tax. Similarly, the State Governments levy tax on and on retail sales in the form of value added tax, entry of goods in the State in the form of entry tax, luxury tax and purchase tax, etc. Accordingly, there is multiplicity of taxes which are being levied on the same supply chain. 2. The present tax system on goods and services is facing certain difficulties as under- (i) the
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mport and till the last retail level. So, any tax that is presently being levied by the Central Government or the State Governments on the supply of goods or services is going to be converged in goods and services tax which is proposed to be a dual levy where the Central Government will levy and collect tax in the form of central goods and services tax and the State Government will levy and collect tax in the form of state goods and services tax on intra-State supply of goods or services or both. 4. In view of the above, it has become necessary to have a Central legislation, namely the Central Goods and Services Tax Bill, 2017. The proposed legislation will confer power upon the Central Government for levying goods and services tax on the supply of goods or services or both which takes place within a State. The proposed legislation will simplify and harmonise the indirect tax regime in the country. It is expected to reduce cost of production and inflation in the economy, thereby making
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r furtherance of business; (c) to impose obligation on electronic commerce operators to collect tax at source, at such rate not exceeding one per cent. of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals; (d) to provide for self-assessment of the taxes payable by the registered person; (e) to provide for conduct of audit of registered persons in order to verify compliance with the provisions of the Act; (f) to provide for recovery of arrears of tax using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person; (g) to provide for powers of inspection, search, seizure and arrest to the officers; (h) to establish the Goods and Services Tax Appellate Tribunal by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority; (i) to make provision for penalties for contravention of the provisions of the proposed Le
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Notes – Acts – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Notes – Notes on clauses Clause 1 provides for short title, extent and commencement of the proposed Act. Clause 2 defines various terms and expressions used in the proposed Act. Clause 3 provides for appointment of Commissioners and other class of officers as may be required for carrying out the purposes of the proposed Act. This clause also provides that the officers under the Central Excise Act, 1944 shall be deemed to be the officers appointed under the proposed Act. Clause 4 provides for appointment of officers in addition to the officers appointed under clause 3 of the proposed legislation. Clause 5 provides for powers to officers to discharge functions under the proposed Act. Clause 6 provides for authorisation of State tax and Union territory tax officers, subject to such conditions as shall be notified by the Central Government on recommendations of the Council, to be proper officers for the purposes of the proposed Ac
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ncil; (ii) the Central Government to notify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both, on the recommendations of the Council; (iii) the central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis; (iv) the Central Government may notify categories of services, the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, on the recommendations of the Council. Clause 10 provides for composition levy. It is an alternative method of levy of tax designed for small taxpayers whose turnover is upto prescribed limit. This clause also provides that certain categories of supplies or suppliers cannot opt for composition levy. A person opting to pay under this clause can neither take credi
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5 provides for value of taxable supply. This clause provides that the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable given the conditions that the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. This clause enumerates the items which are to be included in the value and the items which are not to be included in the value for the purpose of calculation of tax. This clause also provides power to make rules of valuation in certain situations. Clause 16 provides for eligibility, conditions and time period for taking input tax credit. This clause provides that a registered person is entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business. Clause 17 provides for apportionment of input tax credit and blocked input tax credit. This clau
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al goods for job work subject to prescribed conditions. Clause 20 provides for an "Input Service Distributor" who shall distribute the credit of input tax in prescribed manner and subject to specified conditions. Clause 21 provides for manner of recovery of excess input tax credit distributed by the Input Service Distributor along with interest thereon. Clause 22 seeks to create liability for registration on every supplier in the State or Union territory from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds prescribed amount. This clause creates liability for registration under the proposed Act with effect from the appointed day on every person who is registered under an existing law. Clause 23 provides that certain categories of persons are not liable for registration. Clause 24 provides for compulsory registration of certain suppliers notwithstanding that their aggregate turnover is below the exempted thresh
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plication for registration under the proposed Act where registration number or Unique Identity Number has been issued or rejected under States Goods and Services Tax Act. Clause 27 provides for special provisions for a casual taxable person and a nonresident taxable person. Clause 28 provides for amendment of registration. This clause also provides for deemed approval or rejection of amendment where any approval or rejection of amendments has been done under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act. Clause 29 provides that the proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration under certain specified circumstances. This clause further provides that cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a canc
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a registered person shall collect tax in accordance with the provisions of the proposed Act. Clause 33 provides that where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate the amount of tax forming part of the price in all documents relating to assessment, tax invoice and other like documents. Clause 34 provides for issuance of a credit notes and debit notes in specified situations. This clause also provides for maximum time and return in which details of credit note and debit note are required to be declared. Clause 35 provides that every registered person shall keep and maintain at his principal place of business records showing true account of specified particulars. This clause casts responsibility on owner or operator of warehouse or godown or any other place used for storage of goods and on every transporter to maintain specified records. This clause empowers the Commissioner to notify a class of taxable perso
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ication of error or omission and payment of tax and interest, if any, as a consequence of the unmatched details of outward supplies with inward supplies of the recipient. Clause 38 provides for manner and time of furnishing of the details of inward supplies by a registered person, other than certain specified categories of registered persons, including verification, validation, modification or deletion of details of outward supplies furnished by the corresponding suppliers. This clause further provides for manner and time of communication of the details of supplies, as modified or accepted by the recipient, to the corresponding supplier. This clause also provides for manner and time period for rectification of error or omission and payment of tax and interest, if any, as a consequence to the unmatched details. Clause 39 provides for manner, conditions and time of furnishing of returns by different categories of registered persons. This clause further provides that the tax is required t
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e corresponding details. This clause also provides for the consequences of mis-match. Clause 43 provides for matching, in prescribed time and manner, of details of every credit note relating to outward supply furnished by a supplier for a tax period with the corresponding details. This clause also provides for the consequences of mismatch. Clause 44 provides that every registered person, other than certain specified category of persons, shall furnish an annual return along with a copy of the audited annual accounts, a reconciliation statement and such other particulars as may be prescribed. Clause 45 provides that every registered person whose registration has been cancelled shall furnish a final return within prescribed period. Clause 46 provides for issuance of notice to registered person who has failed to furnish a return. Clause 47 provides for levy of fee for delayed filing of return. Clause 48 provides for the manner of approval of goods and services tax practitioner, their eligi
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ixes the ceiling of interest rate in normal and other specified situations. Clause 51 provides for deduction of tax at source by Government departments, local authorities, government agencies and other notified persons, at the rate of one per cent. from the payment made or credited to the supplier in specified situations. This clause elaborates on date of deduction, date of payment of the deducted amount to the credit of Government and filing of prescribed statements. Clause 52 provides for collection of tax at source by an electronic commerce operator, at a notified rate where the consideration for supplies is to be collected by the operator. This clause elaborates on date of collection, date of payment of the amount to the credit of Government and filing of prescribed statements. Clause 53 provides that on utilisation of input tax credit availed under the proposed Act for payment of tax dues under the Integrated Goods and Services Tax Act, the amount collected as central tax shall st
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s otherwise refundable shall be credited to a Fund called the Consumer Welfare Fund. Clause 55 provides for refund of taxes paid on the notified supplies of goods or services or both received by specified person or class of persons. Clause 56 provides for payment of interest on delayed payment of refund. It fixes the ceiling of interest rate in normal and other specified situations. Clause 57 provides that tax and other amounts which are otherwise refundable barring unjust enrichment shall be credited to a Consumer Welfare Fund. Clause 58 provides that the money in the Consumer Welfare Fund would be used for the welfare of the consumers. This clause also provides that the Government or the authority specified by it shall maintain proper and separate account of the Fund and prepare an annual statement of accounts. Clause 59 provides for self-assessment by every registered person. Clause 60 provides for provisional assessment on request by a taxable person in specified situations. This c
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t of records, maintained by a registered person, to verify the correctness of tax liability and tax payment. Clause 66 provides for audit of a registered person, under certain circumstances, by a chartered accountant or a cost accountant. Clause 67 provides for power and provides for the detailed procedure for carrying out search, seizure and inspection to unearth non-compliance of provisions of the proposed Act. This power can be exercised by an officer not below the rank of Joint Commissioner or by an officer authorised by Joint Commissioner. Clause 68 provides for inspection of goods in movement. This clause provides that the Government may require the person-in-charge of a conveyance carrying any consignment of goods of value exceeding specified amount to carry with him prescribed documents and devices. Clause 69 provides for power to arrest a person who has committed certain specified offence. Clause 70 provides for power to summon any person whose attendance is considered necessa
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een provided that SCN need not be issued if tax along with interest is paid before issue of such notice. This clause also provides that where any person chargeable with tax pays the tax along with interest within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the notice shall be deemed to be concluded. Clause 74 provides that in cases of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised, for reasons of fraud or wilful misstatement or suppression of facts, the adjudication order will be issued within five years from the due date of filing of annual return for the year to which the discrepancy is noticed. Further, the show cause notice is required to be issued at least six months prior to the time limit. This clause also provides that such notice need not be issued if tax along with interest and penalty equal to fifteen per cent. of tax is paid before issue of such notice. This clau
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ch notice needs to be issued for recovery of unpaid self-assessed tax as per return and interest thereon. This clause also provides that the adjudication proceedings shall be deemed to be concluded, if the order is not issued within the statutory time limit. Clause 76 provides that any amount collected as tax, along with interest, from customers shall be paid to account of the Government regardless of whether the supplies are taxable or not. This clause further provides for issuance of a show cause notice for the amount collected but not deposited. This clause also provides that the order needs to be issued within one year from the date of issuance of such notice. Clause 77 provides for refund of central tax in situations where intra-State supplies are subsequently held to be inter-State supplies. Clause 78 provides that any amount payable in pursuance of an order shall be paid by such person within a period of three months, except in certain specified cases, from the date of service o
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om the business is so transferred shall, jointly and severally, be liable wholly or to the extent of such transfer, to pay the tax, interest or any penalty due from the taxable person upto the time of such transfer. Clause 86 provides that where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods. Clause 87 provides for the liability of companies when two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise. Clause 88 provides for the liability of company and its directors when any company is being wound up. Clause 89 provides for the liability of director of a private company. Clause 90 provides for the liability of the firm and each of the partners of the firm. Clause 91 provides for the liability of guardians and trustees acting on behalf of a minor or other incapacitated person. Clause 92 provides for
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vides for the detailed procedure for filing of an application for advance ruling. This clause provides that the advance ruling is to be pronounced within ninety days from the date of receipt of application. Clause 99 provides that the Appellate Authority for Advance Ruling constituted under the provisions of a State Goods and Services Tax Act or a Union Territory Goods and Services Tax Act shall be deemed to be the Appellate Authority in respect of that State or Union Territory under the proposed Act. Clause 100 provides that any party aggrieved by any advance ruling may appeal to the Appellate Authority within a period of thirty days from the date on which the ruling sought to be appealed against is communicated. Clause 101 provides that the Appellate Authority shall pass order within a period of ninety days from the date of filing of the appeal or a reference. This clause also provides that where the members of the Appellate Authority differ on any point referred to in appeal or refe
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exercising its powers under the proposed Act. Clause 106 provides that the Authority or the Appellate Authority shall have power to regulate its own procedure. Clause 107 provides the tax payer or the department may appeal against any decision or order passed by an adjudicating authority under the proposed Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act within three months or six months respectively. The clause provides for a pre-deposit of ten per cent. for admittance of the appeal filed by the tax payer and grant of automatic stay on the remaining amount. Clause 108 provides power of revision to the Commissioner. The clause provides that the Revisional Authority, on his own motion, or upon request from Commissioner of State tax or the Commissioner of Union territory tax may revise an order passed by an officer subordinate to him if he considers it to be erroneous and prejudicial to the interest of revenue. Clause 109 provides for constit
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ning amount. Clause 113 provides for the process to be followed by Appellate Tribunal while confirming, modifying or annulling the decision or order against which an appeal has been filed. Clause 114 provides for financial and administrative power of the President of the Appellate Tribunal over the National and Regional Benches. Clause 115 provides for payment of interest where the pre-deposits are required to be refunded consequent to any order of the Appellate Authority or of the Appellate Tribunal. Clause 116 provides for qualification, disqualification and other procedures relating to authorised representative. Clause 117 provides that the appeals to the High Court can be filed by a person, aggrieved by an order of the State Bench or Area Bench of the Tribunal, within one hundred and eighty days. This clause also provides that the High Court may admit the appeal on substantial question of law. Clause 118 provides for appeal before the Supreme Court from an order of the National Ben
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. Clause 123 provides for a penalty for failure to furnish information return under clause 150. Clause 124 provides for a fine on any person who fails to furnish any information or return under clause 151. Clause 125 provides for a general penalty extending to twenty-five thousand rupees for any contravention to the provisions of the proposed Act and where no penalty has been separately specified for such contravention. Clause 126 provides for general disciplines which shall be followed by the officer imposing penalty under the proposed Act. Clause 127 provides for the proper officer to impose penalty which is not covered under any proceedings under specified clauses of the proposed Act. Clause 128 confers power to the Government to waive penalty in part or full, any penalty referred to in specified sections of the proposed Act or any late fee for specified class of taxpayers and under specified circumstances. Clause 129 provides for provisions relating to detention, seizure and releas
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information by any person engaged in connection with the collection of statistics under clause 151 or any person engaged in connection with the provision of service on the common portal or the agent of common portal. Clause 134 provides for restriction to Courts to take cognizance of any offence under the proposed Act or the rules made thereunder except with the previous sanction of the Commissioner. Clause 135 provides presumption of culpable mental state by the court unless otherwise proved by the accused. Clause 136 provides for relevancy of the statements made and signed by a person on appearance in response to any summons. Clause 137 provides that if the person who committed an offence is a company, the person who was in charge and responsible for the conduct of business of the company shall be deemed to be guilty of the offence and punished accordingly. Clause 138 provides for compounding of any offence under the proposed Act, either before or after the institution of prosecution
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ts and computer printouts as evidence. Clause 146 provides for notification of the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax, electronic way bill and other functions. Clause 147 confers powers on the Government to notify certain supplies of goods as deemed exports on the recommendations of the Council. Clause 148 confers powers on the Government to notify certain classes of registered persons, and the special procedures to be followed by such persons on the recommendations of the Council. Clause 149 provides for the assignment and provision of parameters for Goods and Services tax compliance rating. Clause 150 provides for list of persons who are obligated to furnish information return and the procedure to be followed by such persons. Clause 151 confers powers on the Commissioner to direct collection of statistics relating to any matter in connection with the propose
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r anything which is in good faith done or intended to be done under the proposed Act or rules made thereunder. Clause 158 provides that no particulars contained in any statement made, return furnished or accounts or documents produced in accordance with the proposed Act should be disclosed. The clause also provides for specific circumstances under which such information can be disclosed. Clause 159 confers power on the Commissioner, or any other officer authorised by him to publish the name of any person and any other particulars relating to any proceedings or prosecution under the proposed Act if it is necessary in public interest to do so. Clause 160 provides that no assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, accepted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of the proposed Act shall be invalid or deemed to be inval
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isable by any authority or officer under the proposed Act may be exercisable also by another authority or officer, subject to specified conditions. Clause 168 confers powers to the Board to issue orders, instructions or directions to the central tax officers for uniform implementation of the provisions of the proposed Act. Clause 169 provides for methods which should be followed for communication of any decision, order, summons, notice or other communication under the proposed Act. Clause 170 provides for rounding off of tax, interest, penalty, fine or any other sum payable and the amount of refund or any other sum due. Clause 171 provides that it is mandatory to pass on the benefit due to reduction in rate of tax or from input tax credit to the consumer by way of commensurate reduction in prices. Clause 172 confers powers on the Central Government to make such provisions not inconsistent with the provisions of the proposed Act or the rules or regulations by a general or special order,
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