Goods and Services Tax

Appeals to First Appellate Authority
Section 79
Bill
APPEALS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER-XVIII
APPEALS
(Sections 79, 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

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prescribed form and shall be verified in the prescribed manner.
(6) No appeal shall be filed under sub-section (1) unless the appellant has deposited a sum equal 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. amount payable under rule-of the GST Credit Rules 201…; and
iii. 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.
(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 pa

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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.
(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 th

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Compounding of offences
Section 78
Bill
PROSECUTION AND COMPOUNDING OF OFFENCES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
78. Compounding of offences
(1) Any offence under the Act may, either before or after the institution of prosecution, be compounded by the Competent Authority on payment, by the person accused of the offence, to the Central Government or the State Government, as the case be, of such compounding amount in such manner as may be prescribed: Provided that nothing contained in this section shall apply to –
(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 describe

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he provision of this section shall not affect the proceedings if any, instituted under any other law:
Provided also that compounding shall be allowed only after making payment of tax, interest and penalty involved in such offences.
(2) The amount for compounding of offences under this section shall be as may be prescribed under the rules to be made under sub-section (1), subject to the minimum amount not being less than rupees ten thousand or fifty per cent of the tax involved, whichever is greater, and the maximum amount not being more than rupees thirty thousand or one hundred and fifty per cent of the tax, whichever is greater.
(3) On payment of such compounding amount as may be determined by the competent authority, no further procee

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Offences by Companies and certain other persons
Section 77
Bill
PROSECUTION AND COMPOUNDING OF OFFENCES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
77. Offences by Companies and certain other persons
(1) Where an offence committed by a person under this Act is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved tha

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Relevancy of statements under certain circumstances
Section 76
Bill
PROSECUTION AND COMPOUNDING OF OFFENCES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
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, t

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Presumption of culpable mental state
Section 75
Bill
PROSECUTION AND COMPOUNDING OF OFFENCES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
75. Presumption of culpable mental state
(1) In any prosecution for an offence under this Act which requires a culpable mental state on the part of the accused, the Court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with res

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Cognizance of offences
Section 74
Bill
PROSECUTION AND COMPOUNDING OF OFFENCES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
74. Cognizance of offences
No Court shall take cognizance of any offence punishable except with the previous sanction of the designated authority, and no Court inferior to that of a Magistrate of the First Class, shall try any such offence.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Ta

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Prosecution
Section 73
Bill
PROSECUTION AND COMPOUNDING OF OFFENCES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER – XVII
PROSECUTION AND COMPOUNDING OF OFFENCES
73. Prosecution
(1) Whoever commits any of the following offences, namely-
(a) supplies any goods and/or services without issue of any invoice or issues an incorrect or false invoice with regard to any such supply;
(b) 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;
(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

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cquires 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;
(j) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reason to believe are in contravention of any provisions of this Act or the rules made thereunder;
(k) fails to supply any information which he is required to supply under this Act or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the informatio

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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 to in sub-sections (1) and (2) shall not be for a term of less than six months.
(3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), all offences under this Act, except the offences referred to in sub-section (4) shall be non-cognizable and bailable.
(4) The

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Confiscation or penalty not to interfere with other punishments
Section 72
Bill
OFFENCES AND PENALTIES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
72. Confiscation or penalty not to interfere with other punishments
No confiscation made or penalty imposed under the provisions of this Act or the rules made thereunder shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under

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Confiscation of conveyances
Section 71
Bill
OFFENCES AND PENALTIES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
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

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Confiscation of goods and levy of penalty
Section 70
Bill
OFFENCES AND PENALTIES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
70. Confiscation of goods and levy of penalty
(1) If any person –
(i) 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 Act; or
(iii) supplies any goods liable to tax under this Act without having applied for the registration; or
(iv) contravenes any of the provisions of this Act or rules made thereunder with intent to evade payment of tax,
then, all such goods shall be liable to confiscation and the person shall be l

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Detention of goods and conveyances, and levy of penalty
Section 69
Bill
OFFENCES AND PENALTIES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
69. Detention of goods and conveyances, and levy of penalty
(1) Where any person –
(i) transports any goods or stores such goods while they are in transit in violation of the provisions of this Act; or
(ii) stores or keeps in stock goods or supplies goods which have not been accounted for in the books or records main

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General disciplines related to penalty
Section 68
Bill
OFFENCES AND PENALTIES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
68. General disciplines related to penalty
(1) No tax authority shall impose substantial penalties for minor breaches of tax regulations or procedural requirements. In particular, no penalty 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

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General penalty
Section 67
Bill
OFFENCES AND PENALTIES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
67. General penalty
Any person, who contravenes any of the p

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Offences and penalties
Section 66
Bill
OFFENCES AND PENALTIES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER – XVI
OFFENCES AND PENALTIES
66. Offences and penalties
(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 on which such payment becomes due;
(iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the credit of the appropriate Government beyond a period of three months from the date on which such payment becomes due;
(v) fails to deduct the tax in terms of sub-section (1) of

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nts 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;
(xv) fails to keep, maintain or retain books of account and other documents in accordance with the provisions of this Act or the rules made thereunder;
(xvi) fails to furnish information and/or documents called for by a CGST/SGST officer in accordance with the provisions of this Act or rules made thereunder or furnishes false information and/or documents during any proceedings under this

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ave 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 deals with any supply of services which he knows or has reason to believe are in contravention of any provisions of this Act or the rules made thereunder;
(d) fails to appear before the CGST/SGST officer, when issued with a summon for appearance to give evidence or produce a document in an enquiry;
(e) fails to issue invoice in accordance with the provisions of this Ac

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Officers required to assist CGST/SGST officers
Section 65
Bill
INSPECTION, SEARCH, SEIZURE AND ARRES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
65. Officers required to assist CGST/SGST officers
(1) All officers of Police, Customs and those of State/Central Government engaged in collection of goods and services tax and all officers of State/Central Government engaged in the collection of land revenue, and all village officers are hereby empowered and req

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Access to business premises
Section 64
Bill
INSPECTION, SEARCH, SEIZURE AND ARRES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
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-s

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Power to summon persons to give evidence and produce documents
Section 63
Bill
INSPECTION, SEARCH, SEIZURE AND ARRES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
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 in any inquiry which such officer is making for any of the purposes of this Act.
(2) A summons to produce documents or other things may be for the production of certain specified documents or things or for the production of all documents or thing

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Power to arrest
Section 62
Bill
INSPECTION, SEARCH, SEIZURE AND ARRES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
62. Power to arrest
(1) If the [Commissioner of CGST or the Commissioner of SGST] has reason to believe that any person has committed an offence punishable under clause (i) or (ii) of sub-section (1) or under sub-section (2) of section 73, he may, by order, authorise any CGST/SGST officer to arrest such person.
(2) Where a person is arrested

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Inspection of goods in movement
Section 61
Bill
INSPECTION, SEARCH, SEIZURE AND ARRES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
61. Inspection of goods in movement
(1) The Central or a State Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding fifty thousand rupees to carry with him such documents as may be prescribed in this behalf.
(2) Where any vehicle referred to in sub-section (1) is inte

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Power of inspection, search and seizure
Section 60
Bill
INSPECTION, SEARCH, SEIZURE AND ARRES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER- XV
INSPECTION, SEARCH, SEIZURE AND ARREST
60. Power of inspection, search and seizure
(1) Where the CGST/SGST officer, not below the rank of Joint Commissioner, has reasons to believe that –
(a) a taxable person has suppressed any transaction relating to supply of goods and/or services or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under the Act or has indulged in contravention of any of the provisions of this Act or rules made thereunder to evade tax under this Act; or
(b) any person engaged in the business

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r 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 to break open any almirah, box, receptacle in which any goods, accounts, registers or documents of the person are suspected to be concealed, where

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ving regard to the perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be after its seizure under sub-section (2), be disposed of by the proper officer in such manner as 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 sear

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Continuation of certain recovery proceedings
Section 59
Bill
DEMANDS AND RECOVERY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
59. Continuation of certain recovery proceedings
(1) Where any notice of demand in respect of any tax, penalty, interest or any other amount payable under this Act, (hereinafter in this section referred to as “Government dues”), is served upon any taxable person and any appeal, revision application is filed or other proceedings is initiated in respect of such Government dues, then –
(a) Where such Government dues are enhanced in such appeal, revision or other proceeding, the Commissioner shall serve upon the taxable person another notice of demand only in respect of the amou

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Provisional attachment to protect revenue in certain cases
Section 58
Bill
DEMANDS AND RECOVERY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
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 that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may by orde

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Tax to be first charge on property
Section 57
Bill
DEMANDS AND RECOVERY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
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, 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 tax

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Transfer of property to be void in certain cases
Section 56
Bill
DEMANDS AND RECOVERY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
56. Transfer of property to be void in certain cases
Where a person, after any tax has become due from him, creates a charge on or parts with the property belonging to him or in his possession by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties in favour of any other person wit

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Payment of tax and other amount in installments.
Section 55
Bill
DEMANDS AND RECOVERY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
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 amount due under the Act, other than the amount due as per the liability self-assessed in any re

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