THE CENTRAL GOODS AND SERVICES TAX BILL, 2017.
GST
Dated:- 27-3-2017
THE CENTRAL GOODS AND SERVICES TAX BILL, 2017
\nGST bills – Clause by Clause
\n
\n=============
\nDocument 1
\nAS INTRODUCED IN LOK SABHA
\nBill No. 57 of 2017
\nTHE CENTRAL GOODS AND SERVICES TAX BILL, 2017
\nARRANGEMENT OF CLAUSES
\nCHAPTER I
\nPRELIMINARY
\nCLAUSES
\n1. Short title, extent and commencement.
\n2. Definitions.
\nCHAPTER II
\nADMINISTRATION
\n3. Officers under this Act.
\n4. Appointment of officers.
\n5. Powers of officers.
\n6. Authorisation of officers of State tax or Union territory tax as proper officer in
\ncertain circumstances.
\n7. Scope of supply.
\nCHAPTER III
\nLEVY AND COLLECTION OF TAX
\n8. Tax liability on composite and mixed supplies.
\n9. Levy and collection.
\n10. Composition levy.
\n11. Power to grant exemption from tax.
\nCHAPTER IV
\nTIME AND VALUE OF SUPPLY
\n12. Time of supply of goods.
\n13. Time of supply of services.
\n14. Change in rate of tax in respect of supply of goods or services.
\n15<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of tax to be indicated in tax invoice and other documents. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n aid or erroneously refunded or input tax = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ualification, appointment, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n on to furnish information return. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n l be construed as = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 0 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n sition of goods including capital goods and services in = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r capacity, in a State or a Union = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ces or both = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Act, 1959; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ke such law, notification, order, rule or regulation; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ance of business; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ion to a person, shall mean receipt of goods or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n made from a place of business for which the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n not, in India or outside India; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n x who is assigned that function = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ods and Services Tax Act; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ate Goods and Services Tax Act” means the respective State Goods = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n documentation, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n x, and = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he shall also issue an = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n neither as a supply of goods nor a supply of services. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ope of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ut tax. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n shall = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of issue of invoice or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n supplier of taxable service receives an amount upto one = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n etermine the time of supply under the provisions of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ved before the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ces; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n directly controlled by a third person; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t an invoice are received in lots or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n by the registered person partly for = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n transportation of goods; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n goods or services or both used for personal consumption; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ay immediately = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ly preceding the date of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n to a job worker, the period of one year = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \n(c) the credit of tax paid on input services attributable to a recipient of credit shall = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ans the supplier of goods or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n liable to be registered = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hall be required to be registered under this Act,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n st point of the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ng in force, proceed to register such = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f application for registration under this Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n al of the proper officer shall not be required in respect of amendment = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n as not commenced business within six months from the date of registration; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nregistration is cancelled by the proper officer on his own motion, may apply to such officer 45 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the categories = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n sue to the person who had made the payment, a refund voucher against = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n expression “tax invoice\u00e2\u00e2\u0082\u00ac\u009d shall = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n on to any other person. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n may notify a class of taxable persons to maintain additional = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n urt, whether filed by him or by the Commissioner, or is under investigation for an = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g the tax period and the details furnished by him under sub-section (1) shall = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of section 10 or section 51 or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , in case there is a short payment of tax on account of such = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n teen days after the end of such month. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n orrect particulars shall be = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n im of input tax credit in respect of invoices or debit notes relating to inward = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n amount so added from the date of availing of credit till the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the claim for input tax credit or the corresponding credit note = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hall not exceed the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n under section 37 or section 38 or returns required under section 39 or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y be prescribed. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ledger after payment = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ecommendations of the Council. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n end of the month in which such deduction is made, in = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n vernment on the recommendations of the Council, of the net value of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tement under sub-section (4) discovers any = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n is more than the value of outward supplies furnished by the supplier, in his return = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e valid return furnished under sub-section (1) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n exempt = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nbe notified by the Government on the recommendations of the Council, refund on a = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n person who has = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \n(14) Notwithstanding anything contained in this section, no refund under sub-section (5) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ent, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rt which has attained finality = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n to determine the value of goods or services or both or determine the rate of tax applicable = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r for final = = = = = = = =<\/p>\n
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\n34. Credit and debit notes.
\nCHAPTER VIII
\nACCOUNTS AND RECORDS
\n35. Accounts and other records.
\n36. Period of retention of accounts.
\nCHAPTER IX
\nRETURNS
\n37. Furnishing details of outward supplies.
\n38. Furnishing details of inward supplies.
\n39. Furnishing of returns.
\n40. First return.
\n41. Claim of input tax credit and provisional acceptance thereof.
\n42. Matching, reversal and reclaim of input tax credit.
\n43. Matching, reversal and reclaim of reduction in output tax liability.
\n44. Annual return.
\n45. Final return.
\n(iii)
\nCLAUSES
\n46. Notice to return defaulters.
\n47. Levy of late fee.
\n48. Goods and services tax practitioners.
\nCHAPTER X
\nPAYMENT OF TAX
\n49. Payment of tax, interest, penalty and other amounts.
\n50. Interest on delayed payment of tax.
\n51. Tax deduction at source.
\n52. Collection of tax at source.
\n53. Transfer of input tax credit.
\n54. Refund of tax.
\n55. Refund in certain cases.
\n56. Interest on del<\/p>\n
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\ncredit wrongly availed or utilised by reason of fraud or any wilful misstatement or
\nsuppression of facts.
\n75. General provisions relating to determination of tax.
\n76. Tax collected but not paid to Government.
\n77. Tax wrongfully collected and paid to Central Government or State Government.
\n78. Initiation of recovery proceedings.
\n79. Recovery of tax.
\n80. Payment of tax and other amount in instalments.
\n81. Transfer of property to be void in certain cases.
\n82. Tax to be first charge on property.
\n83. Provisional attachment to protect revenue in certain cases.
\n84. Continuation and validation of certain recovery proceedings.
\nCHAPTER XVI
\nLIABILITY TO PAY IN CERTAIN CASES
\n85. Liability in case of transfer of business.
\n86. Liability of agent and principal.
\n87. Liability in case of amalgamation or merger of companies.
\n88. Liability in case of company in liquidation.
\n89. Liability of directors of private company.
\n90. Liability of partner<\/p>\n
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\nconditions of service, etc.
\n111. Procedure before Appellate Tribunal.
\n112. Appeals to Appellate Tribunal.
\n113. Orders of Appellate Tribunal.
\n114. Financial and administrative powers of President.
\n115. Interest on refund of amount paid for admission of appeal.
\n116. Appearance by authorised representative.
\n117. Appeal to High Court.
\n118. Appeal to Supreme Court.
\n119. Sums due to be paid notwithstanding appeal, etc.
\n120. Appeal not to be filed in certain cases.
\n121. Non appealable decisions and orders.
\nCHAPTER XIX
\nOFFENCES AND PENALTIES
\n122. Penalty for certain offences.
\n123. Penalty for failure to furnish information return.
\n124. Fine for failure to furnish statistics.
\n125. General penalty.
\n126. General disciplines related to penalty.
\n127. Power to impose penalty in certain cases.
\n128. Power to waive penalty or fee or both.
\n129. Detention, seizure and release of goods and conveyances in transit.
\nCLAUSES
\n(vi)
\n130. Confiscation of goods o<\/p>\n
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\n151. Power to collect statistics.
\n152. Bar on disclosure of information.
\n153. Taking assistance from an expert.
\n154. Power to take samples.
\n155. Burden of proof.
\n156. Persons deemed to be public servants.
\n157. Protection of action taken under this Act.
\n158. Disclosure of information by a public servant.
\n159. Publication of information in respect of persons in certain cases.
\n160. Assessment proceedings, etc., not to be invalid on certain grounds.
\n(vii)
\nCLAUSES
\n161. Rectification of errors apparent on the face of record.
\n162. Bar on jurisdiction of civil courts.
\n163. Levy of fee.
\n164. Power of Government to make rules.
\n165. Power to make regulations.
\n166. Laying of rules, regulations and notifications.
\n167. Delegation of powers.
\n168. Power to issue instructions or directions.
\n169. Service of notice in certain circumstances.
\n170. Rounding off of tax, etc.
\n171. Anti-profiteering measure.
\n172. Removal of difficulties.
\n173. Amendment<\/p>\n
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\na reference to the coming into force of that provision.
\n2. In this Act, unless the context otherwise requires,\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(1) “actionable claim\u00e2\u00e2\u0082\u00ac\u009d shall have the same meaning as assigned to it in section 3
\nof the Transfer of Property Act, 1882;
\n(2) “address of delivery\u00e2\u00e2\u0082\u00ac\u009d means the address of the recipient of goods or services
\nor both indicated on the tax invoice issued by a registered person for delivery of such
\ngoods or services or both;
\n(3) “address on record\u00e2\u00e2\u0082\u00ac\u009d means the address of the recipient as available in the
\nrecords of the supplier;
\n(4) “adjudicating authority” means any authority, appointed or authorised to pass
\nany order or decision under this Act, but does not include the Central Board of Excise
\nand Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate
\nAuthority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;
\n(5) “agent” means a person, including a factor, broker, commission agen<\/p>\n
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\n(8) “Appellate Authority\u00e2\u00e2\u0082\u00ac\u009d means an authority appointed or authorised to hear
\nappeals as referred to in section 107;
\n(9) “Appellate Tribunal\u00e2\u00e2\u0082\u00ac\u009d means the Goods and Services Tax Appellate Tribunal
\nconstituted under section 109;
\n(10) “appointed day\u00e2\u00e2\u0082\u00ac\u009d means the date on which the provisions of this Act shall
\ncome into force;
\n(11) “assessment\u00e2\u00e2\u0082\u00ac\u009d means determination of tax liability under this Act and includes
\nself-assessment, re-assessment, provisional assessment, summary assessment and
\nbest judgment assessment;
\n(12) “associated enterprises\u00e2\u00e2\u0082\u00ac\u009d shall have the same meaning as assigned to it in
\nsection 92A of the Income-tax Act, 1961;
\n(13) “audit” means the examination of records, returns and other documents
\nmaintained or furnished by the registered person under this Act or the rules made
\nthereunder or under any other law for the time being in force to verify the correctness
\nof turnover declared, taxes paid, refund claimed and input tax credit availed, an<\/p>\n
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\nconnection with commencement or closure of business;
\n(e) provision by a club, association, society, or any such body (for a
\nsubscription or any other consideration) of the facilities or benefits to its members;
\n(f) admission, for a consideration, of persons to any premises;
\n(g) services supplied by a person as the holder of an office which has been
\naccepted by him in the course or furtherance of his trade, profession or vocation;
\n(h) services provided by a race club by way of totalisator or a licence to
\nbook maker in such club ; and
\n(i) any activity or transaction undertaken by the Central Government, a
\nState Government or any local authority in which they are engaged as public
\nauthorities;
\n(18) “business vertical\u00e2\u00e2\u0082\u00ac\u009d means a distinguishable component of an enterprise
\nthat is engaged in the supply of individual goods or services or a group of related
\ngoods or services which is subject to risks and returns that are<\/p>\n
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\nterritory where he has no fixed place of business;
\n(21) “central tax\u00e2\u00e2\u0082\u00ac\u009d means the central goods and services tax levied under
\nsection 9;
\n54 of 1963.
\n(22) “cess” shall have the same meaning as assigned to it in the Goods and
\nServices Tax (Compensation to States) Act;
\n(23) \u00e2\u00e2\u0082\u00ac\u00c5\u0093chartered accountant\u00e2\u00e2\u0082\u00ac\u009d means a chartered accountant as defined in
\nclause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949;
\n(24) “Commissioner\u00e2\u00e2\u0082\u00ac\u009d means the Commissioner of central tax and includes
\nthe Principal Commissioner of central tax appointed under section 3 and the
\nCommissioner of integrated tax appointed under the Integrated Goods and Services
\nTax Act;
\n(25) “Commissioner in the Board” means the Commissioner referred to in
\nsection 168;
\n(26) “common portal\u00e2\u00e2\u0082\u00ac\u009d means the common goods and services tax electronic
\nportal referred to in section 146;
\n(27) “common working days\u00e2\u00e2\u0082\u00ac\u009d in respect of a State or Union territor<\/p>\n
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\nincludes\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) any payment made or to be made, whether in money or otherwise, in
\nrespect of, in response to, or for the inducement of, the supply of goods or
\nservices or both, whether by the recipient or by any other person but shall
\nnot include any subsidy given by the Central Government or a State
\nGovernment;
\n38 of 1949.
\n5
\n10
\n15
\n56 of 1980.
\n20
\n25
\n30
\n(b) the monetary value of any act or forbearance, in respect of, in 35
\nresponse to, or for the inducement of, the supply of goods or services or
\nboth, whether by the recipient or by any other person but shall not include
\nany subsidy given by the Central Government or a State Government:
\nProvided that a deposit given in respect of the supply of goods or
\nservices or both shall not be considered as payment made for such supply
\nunless the supplier applies such deposit as consideration for the said supply;
\n40
\n(32) \u00e2\u00e2\u0082\u00ac\u00c5\u0093continuous supply of goods\u00e2\u00e2\u0082\u00ac\u009d means a supply of goods which is
\nprovided, or ag<\/p>\n
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\n(36) “Council” means the Goods and Services Tax Council established under
\narticle 279A of the Constitution;
\n(37) “credit note\u00e2\u00e2\u0082\u00ac\u009d means a document issued by a registered person under
\nsub-section (1) of section 34;
\n(38) “debit note\u00e2\u00e2\u0082\u00ac\u009d means a document issued by a registered person under
\nsub-section (3) of section 34;
\n(39) “deemed exports” means such supplies of goods as may be notified under
\nsection 147;
\n(40) “designated authority\u00e2\u00e2\u0082\u00ac\u009d means such authority as may be notified by the
\nBoard;
\n(41) \u00e2\u00e2\u0082\u00ac\u00c5\u0093document\u00e2\u00e2\u0082\u00ac\u009d includes written or printed record of any sort and electronic
\nrecord as defined in clause (t) of section 2 of the Information Technology Act, 2000;
\n(42) “drawback\u00e2\u00e2\u0082\u00ac\u009d in relation to any goods manufactured in India and exported,
\nmeans the rebate of duty, tax or cess chargeable on any imported inputs or on any
\ndomestic inputs or input services used in the manufacture of such goods;
\n(43) “electronic cash ledger” means the electronic cash <\/p>\n
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\n(49) “family” means,\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(i) the spouse and children of the person, and
\n(ii) the parents, grand-parents, brothers and sisters of the person if they
\nare wholly or mainly dependent on the said person;
\n(50) “fixed establishment\u00e2\u00e2\u0082\u00ac\u009d means a place (other than the registered place of
\nbusiness) which is characterised by a sufficient degree of permanence and suitable
\nstructure in terms of human and technical resources to supply services, or to receive
\nand use services for its own needs;
\n6
\n(51) \u00e2\u00e2\u0082\u00ac\u00c5\u0093Fund\u00e2\u00e2\u0082\u00ac\u009d means the Consumer Welfare Fund established under section 57;
\n(52) “goods” means every kind of movable property other than money and
\nsecurities but includes actionable claim, growing crops, grass and things attached to
\nor forming part of the land which are agreed to be severed before supply or under a
\ncontract of supply;
\n(53) “Government\u00e2\u00e2\u0082\u00ac\u009d means the Central Government;
\n(54) “Goods and Services Tax (Compen<\/p>\n
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\n(60) “input service\u00e2\u00e2\u0082\u00ac\u009d means any service used or intended to be used by a supplier
\nin the course or furtherance of business;
\n(61) “Input Service Distributor\u00e2\u00e2\u0082\u00ac\u009d means an office of the supplier of goods or
\nservices or both which receives tax invoices issued under section 31 towards the
\nreceipt of input services and issues a prescribed document for the purposes of
\ndistributing the credit of central tax, State tax, integrated tax or Union territory tax paid
\non the said services to a supplier of taxable goods or services or both having the same
\nPermanent Account Number as that of the said office;
\n(62) “input tax” in relation to a registered person, means the central tax, State tax,
\nintegrated tax or Union territory tax charged on any supply of goods or services or
\nboth made to him and includes\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) the integrated goods and services tax charged on import of goods;
\n5
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\n(b) the tax payable under the provisions of sub-sections (3)<\/p>\n
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\nservices or both whether by purchase, acquisition or any other means with or without
\nconsideration;
\n50
\n80 of 1976.
\n41 of 2006.
\n5
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\n20
\n25
\n30
\n55
\n35
\n40
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\n50
\n7
\n(68) “job work” means any treatment or process undertaken by a person on
\ngoods belonging to another registered person and the expression \u00e2\u00e2\u0082\u00ac\u00c5\u0093job worker\u00e2\u00e2\u0082\u00ac\u009d shall
\nbe construed accordingly;
\n(69) “local authority” means\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) a “Panchayat\u00e2\u00e2\u0082\u00ac\u009d as defined in clause (d) of article 243 of the Constitution;
\n(b) a “Municipality\u00e2\u00e2\u0082\u00ac\u009d as defined in clause (e) of article 243P of
\nthe Constitution;
\n(c) a Municipal Committee, a Zilla Parishad, a District Board, and any other
\nauthority legally entitled to, or entrusted by the Central Government or any State
\nGovernment with the control or management of a municipal or local fund;
\n(d) a Cantonment Board as defined in section 3 of the Cantonments
\nAct 2006;
\n(e) a Regional Council or a District Council<\/p>\n
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\nregistration has been obtained, the location of such place of business;
\n(b) where a supply is made from a place other than the place of business
\nfor which registration has been obtained (a fixed establishment elsewhere), the
\nlocation of such fixed establishment;
\n(c) where a supply is made from more than one establishment, whether the
\nplace of business or fixed establishment, the location of the establishment most
\ndirectly concerned with the provisions of the supply; and
\n(d) in absence of such places, the location of the usual place of residence
\nof the supplier;
\n(72) \u00e2\u00e2\u0082\u00ac\u00c5\u0093manufacture\u00e2\u00e2\u0082\u00ac\u009d means processing of raw material or inputs in any manner
\nthat results in emergence of a new product having a distinct name, character and use
\nand the term “manufacturer\u00e2\u00e2\u0082\u00ac\u009d shall be construed accordingly;
\n(73) “market value\u00e2\u00e2\u0082\u00ac\u009d shall mean the full amount which a recipient of a supply is
\nrequired to pay in order to obtain the goods or <\/p>\n
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\nReserve Bank of India when used as a consideration to settle an obligation or exchange
\nwith Indian legal tender of another denomination but shall not include any currency
\nthat is held for its numismatic value;
\n(76) “motor vehicle\u00e2\u00e2\u0082\u00ac\u009d shall have the same meaning as assigned to it in clause (28)
\nof section 2 of the Motor Vehicles Act, 1988;
\n(77) “non-resident taxable person\u00e2\u00e2\u0082\u00ac\u009d means any person who occasionally
\nundertakes transactions involving supply of goods or services or both, whether as
\nprincipal or agent or in any other capacity, but who has no fixed place of business or
\nresidence in India;
\n(78) “non-taxable supply\u00e2\u00e2\u0082\u00ac\u009d means a supply of goods or services or both which is
\nnot leviable to tax under this Act or under the Integrated Goods and Services Tax Act;
\n(79) “non-taxable territory” means the territory which is outside the taxable
\nterritory;
\n(80) “notification\u00e2\u00e2\u0082\u00ac\u009d means a notification published in the Official Gazette and the
\nexpressions “notify\u00c3\u00a2\u00e2\u00e2\u0080\u009a<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(g) any corporation established by or under any Central Act, State Act or
\nProvincial Act or a Government company as defined in clause (45) of section 2 of 40
\nthe Companies Act, 2013;
\n(h) any body corporate incorporated by or under the laws of a country
\noutside India;
\n(i) a co-operative society registered under any law relating to co-operative
\nsocieties;
\n18 of 2013.
\n45
\n21 of 1860.
\n5
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\n(j) a local authority;
\n9
\n(k) Central Government or a State Government;
\n(1) society as defined under the Societies Registration Act, 1860;
\n(m) trust; and
\n(n) every artificial juridical person, not falling within any of the above;
\n(85) “place of business” includes\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) a place from where the business is ordinarily carried on, and includes a
\nwarehouse, a godown or any other place where a taxable person stores his
\ngoods, supplies or receives goods or services or both; or
\n(b) a place where a taxable person maintains <\/p>\n
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\nby the Commissioner in the Board;
\n(92) “quarter” shall mean a period comprising three consecutive calendar months,
\nending on the last day of March, June, September and December of a calendar year;
\n(93) “recipient” of supply of goods or services or both, means\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) where a consideration is payable for the supply of goods or services or
\nboth, the person who is liable to pay that consideration;
\n(b) where no consideration is payable for the supply of goods, the person
\nto whom the goods are delivered or made available, or to whom possession or
\nuse of the goods is given or made available; and
\n(c) where no consideration is payable for the supply of a service, the
\nperson to whom the service is rendered,
\nand any reference to a person to whom a supply is made shall be construed as
\na reference to the recipient of the supply and shall include an agent acting as
\nsuch on behalf of the recipient in relation to the goods or services or both
\nsupplie<\/p>\n
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\n(99) “Revisional Authority” means an authority appointed or authorised for
\nrevision of decision or orders as referred to in section 108;
\n(100) “Schedule\u00e2\u00e2\u0082\u00ac\u009d means a Schedule appended to this Act;
\n(101) \u00e2\u00e2\u0082\u00ac\u00c5\u0093securities\u00e2\u00e2\u0082\u00ac\u009d shall have the same meaning as assigned to it in clause (h) of
\nsection 2 of the Securities Contracts (Regulation) Act, 1956;
\n(102) “services” means anything other than goods, money and securities but
\nincludes activities relating to the use of money or its conversion by cash or by any
\nother mode, from one form, currency or denomination, to another form, currency or
\ndenomination for which a separate consideration is charged;
\nAct;
\n(103) “State” includes a Union territory with Legislature;
\n(104) “State tax” means the tax levied under any State Goods and Services Tax
\n10
\n15
\n42 of 1956.
\n20
\n(105) “supplier\u00e2\u00e2\u0082\u00ac\u009d in relation to any goods or services or both, shall mean the 25
\nperson supplying the said goods or services or bo<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nand Services Tax Act, 2017;
\n(112) “turnover in State\u00e2\u00e2\u0082\u00ac\u009d or \u00e2\u00e2\u0082\u00ac\u00c5\u0093turnover in Union territory” means the aggregate
\nvalue of all taxable supplies (excluding the value of inward supplies on which tax is 45
\npayable by a person on reverse charge basis) and exempt supplies made within a State
\nor Union territory by a taxable person, exports of goods or services or both
\nand inter-State supplies of goods or services or both made from the State or Union
\n5
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\n11
\nterritory by the said taxable person but excludes central tax, State tax, Union territory
\ntax, integrated tax and cess;
\n(113) “usual place of residence” means-
\n(a) in case of an individual, the place where he ordinarily resides;
\n(b) in other cases, the place where the person is incorporated or otherwise
\nlegally constituted;
\n(114) \u00e2\u00e2\u0082\u00ac\u00c5\u0093Union territory\u00e2\u00e2\u0082\u00ac\u009d means the territory of
\n(a) the Andaman and Nicobar Islands;
\n(b) Lakshadwee<\/p>\n
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\nincluding the terms and conditions of use of such instrument;
\n(119) “works contract\u00e2\u00e2\u0082\u00ac\u009d means a contract for building, construction, fabrication,
\ncompletion, erection, installation, fitting out, improvement, modification, repair,
\nmaintenance, renovation, alteration or commissioning of any immovable property
\nwherein transfer of property in goods (whether as goods or in some other form) is
\ninvolved in the execution of such contract;
\n(120) words and expressions used and not defined in this Act but defined in the
\nIntegrated Goods and Services Tax Act, the Union Territory Goods and Services Tax
\nAct and the Goods and Services Tax (Compensation to States) Act shall have the same
\nmeaning as assigned to them in those Acts;
\n(121) any reference in this Act to a law which is not in force in the State of Jammu
\nand Kashmir, shall, in relation to that State be construed as a reference to the
\ncorresponding law, if any, in force in that State.
\n40
\nCHAPTER II
\nADMINISTRA<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(i) any other class of officers as it may deem fit:
\nProvided that the officers appointed under the Central Excise Act, 1944 shall be deemed
\nto be the officers appointed under the provisions of this Act.
\n4. (1) The Board may, in addition to the officers as may be notified by the Government
\nunder section 3, appoint such persons as it may think fit to be the officers under this Act.
\n(2) Without prejudice to the provisions of sub-section (1), the Board may, by
\norder, authorise any officer referred to in clauses (a) to (h) of section 3 to appoint officers of
\ncentral tax below the rank of Assistant Commissioner of central tax for the administration of
\nthis Act.
\n5. (1) Subject to such conditions and limitations as the Board may impose, an officer of
\ncentral tax may exercise the powers and discharge the duties conferred or imposed on him
\nunder this Act.
\n(2) An officer of central tax may exercise the powers and discharge the duties conferred
\nor imposed under this Act on any<\/p>\n
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\norder under the State Goods and Services Tax Act or the Union Territory Goods and
\nServices Tax Act, as authorised by the State Goods and Services Tax Act or the Union
\nTerritory Goods and Services Tax Act, as the case may be, under intimation to the
\njurisdictional officer of State tax or Union territory tax;
\n(b) where a proper officer under the State Goods and Services Tax Act or the
\nUnion Territory Goods and Services Tax Act has initiated any proceedings on a subject
\nmatter, no proceedings shall be initiated by the proper officer under this Act on the
\nsame subject matter.
\n30
\n35
\n40
\n(3) Any proceedings for rectification, appeal and revision, wherever applicable, of any
\norder passed by an officer appointed under this Act shall not lie before an officer appointed
\nunder the State Goods and Services Tax Act or the Union Territory Goods and Services Tax 45
\nAct.
\n13
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\nCHAPTER III
\nLEVY AND COLLECTION OF TAX
\n7. (1) For the purposes of<\/p>\n
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\n(3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the
\nrecommendations of the Council, specify, by notification, the transactions that are to be
\ntreated as-
\n(a) a supply of goods and not as a supply of services; or
\n(b) a supply of services and not as a supply of goods.
\n8. The tax liability on a composite or a mixed supply shall be determined in the following
\nmanner, namely:\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) a composite supply comprising two or more supplies, one of which is a
\nprincipal supply, shall be treated as a supply of such principal supply; and
\n(b) a mixed supply comprising two or more supplies shall be treated as a supply
\nof that particular supply which attracts the highest rate of tax.
\n9. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the
\ncentral goods and services tax on all intra-State supplies of goods or services or both, except
\non the supply of alcoholic liq<\/p>\n
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\nsupply.
\nTax liability
\non composite
\nand mixed
\nsupplies.
\nLevy and
\ncollection.
\n14
\nComposition
\nlevy.
\n(4) The central tax in respect of the supply of taxable goods or services or both by a
\nsupplier, who is not registered, to a registered person shall be paid by such person on
\nreverse charge basis as the recipient and all the provisions of this Act shall apply to such
\nrecipient as if he is the person liable for paying the tax in relation to the supply of such goods
\nor services or both.
\n(5) The Government may, on the recommendations of the Council, by notification,
\nspecify categories of services the tax on intra-State supplies of which shall be paid by the
\nelectronic commerce operator if such services are supplied through it, and all the provisions
\nof this Act shall apply to such electronic commerce operator as if he is the supplier liable for
\npaying the tax in relation to the supply of such services:
\nProvided that where an electronic commerce operator does not hav<\/p>\n
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\na manufacturer,
\n(b) two and a half per cent. of the turnover in State or turnover in Union territory
\nin case of persons engaged in making supplies referred to in clause (b) of paragraph 6
\nof Schedule II, and
\n(c) half per cent. of the turnover in State or turnover in Union territory in case of
\nother suppliers,
\nsubject to such conditions and restrictions as may be prescribed:
\nProvided that the Government may, by notification, increase the said limit of fifty lakh
\nrupees to such higher amount, not exceeding one crore rupees, as may be recommended by
\nthe Council.
\n(2) The registered person shall be eligible to opt under sub-section (1), if-
\n5
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\n(a) he is not engaged in the supply of services other than supplies referred to in 35
\nclause (b) of paragraph 6 of Schedule II;
\n(b) he is not engaged in making any supply of goods which are not leviable to tax
\nunder this Act;
\n(c) he is not engaged in making any inter-State outward supplies of goods;
\n(d) he is n<\/p>\n
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\n(5) If the proper officer has reasons to believe that a taxable person has paid tax under
\nsub-section (1) despite not being eligible, such person shall, in addition to any tax that:
\nmay
\nbe payable by him under any other provisions of this Act, be liable to a penalty and the
\n10 provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination of tax
\nand penalty.
\n11. (1) Where the Government is satisfied that it is necessary in the public interest so
\nto do, it may, on the recommendations of the Council, by notification, exempt generally, either
\nabsolutely or subject to such conditions as may be specified therein, goods or services or
\n15 both of any specified description from the whole or any part of the tax leviable thereon with
\neffect from such date as may be specified in such notification.
\n(2) Where the Government is satisfied that it is necessary in the public interest so to
\ndo, it may, on the recommendations of the Council, by special order <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nnot collect the tax, in excess of the effective rate, on such supply of goods or services or
\nboth.
\n35
\n40
\n45
\nCHAPTER IV
\nTIME AND VALUE OF SUPPLY
\n12. (1) The liability to pay tax on goods shall arise at the time of supply, as determined
\nin accordance with the provisions of this section.
\n(2) The time of supply of goods shall be the earlier of the following dates, namely:\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) the date of issue of invoice by the supplier or the last date on which he is
\nrequired, under sub-section (1) of section 31, to issue the invoice with respect to the
\nsupply; or
\n(b) the date on which the supplier receives the payment with respect to the
\nsupply:
\nProvided that where the supplier of taxable goods receives an amount upto one
\nthousand rupees in excess of the amount indicated in the tax invoice, the time of
\nsupply to the extent of such excess amount shall, at the option of the said supplier, be
\nthe date of issue of invoice in respect of such excess amount.
\nPower to
\ngrant
\ne<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nany other document, by whatever name called, in lieu thereof by the supplier:
\nProvided that where it is not possible to determine the time of supply under
\nclause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the
\nbooks of account of the recipient of supply.
\n(4) In case of supply of vouchers by a supplier, the time of supply shall be\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) the date of issue of voucher, if the supply is identifiable at that point; or
\n(b) the date of redemption of voucher, in all other cases.
\n(5) Where it is not possible to determine the time of supply under the provisions of
\nsub-section (2) or sub-section (3) or sub-section (4), the time of supply shall\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) in a case where a periodical return has to be filed, be the date on which such
\nreturn is to be filed; or
\n(b) in any other case, be the date on which the tax is paid.
\n(6) The time of supply to the extent it relates to an addition in the value of supply by
\nway of inter<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthousand rupees in excess of the amount indicated in the tax invoice, the time of
\nsupply to the extent of such excess amount shall, at the option of the said supplier, be
\nthe date of issue of invoice relating to such excess amount.
\nExplanation. For the purposes of clauses (a) and (b)\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n40
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\n(i) the supply shall be deemed to have been made to the extent it is covered
\nby the invoice or, as the case may be, the payment;
\n(ii) “the date of receipt of payment\u00e2\u00e2\u0082\u00ac\u009d shall be the date on which the payment
\nis entered in the books of account of the supplier or the date on which the
\npayment is credited to his bank account, whichever is earlier.
\n(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse
\ncharge basis, the time of supply shall be the earlier of the following dates, namely:\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) the date of payment as entered in the books of account <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsub-section (2) or sub-section (3) or sub-section (4), the time of supply shall\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) in a case where a periodical return has to be filed, be the date on which such
\nreturn is to be filed; or
\n(b) in any other case, be the date on which the tax is paid.
\n(6) The time of supply to the extent it relates to an addition in the value of supply by
\nway of interest, late fee or penalty for delayed payment of any consideration shall be the date
\non which the supplier receives such addition in value.
\nrate of tax in
\n14. Notwithstanding anything contained in section 12 or section 13, the time of supply, Change in
\nwhere there is a change in the rate of tax in respect of goods or services or both, shall be
\ndetermined in the following manner, namely:\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) in case the goods or services or both have been supplied before the change
\nin rate of tax,-
\n(i) where the invoice for the same has been issued and the payment is also
\nreceiv<\/p>\n
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\nchange in rate of tax, the time of supply shall be the date of receipt of payment or
\ndate of issue of invoice, whichever is earlier; or
\n(iii) where the invoice has been issued after the change in rate of tax but
\nthe payment is received before the change in rate of tax, the time of supply shall
\nbe the date of issue of invoice:
\nProvided that the date of receipt of payment shall be the date of credit in
\nthe bank account if such credit in the bank account is after four working days
\nfrom the date of change in the rate of tax.
\nExplanation. For the purposes of this section, \u00e2\u00e2\u0082\u00ac\u00c5\u0093the date of receipt of
\npayment\u00e2\u00e2\u0082\u00ac\u009d shall be the date on which the payment is entered in the books of
\naccount of the supplier or the date on which the payment is credited to his bank
\naccount, whichever is earlier.
\n15. (1) The value of a supply of goods or services or both shall be the transaction
\nvalue, which is the price actually paid or payable for the said supply of goods or service<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(d) interest or late fee or penalty for delayed payment of any consideration for
\nany supply; and
\n(e) subsidies directly linked to the price excluding subsidies provided by the
\nCentral Government and State Governments.
\nExplanation. For the purposes of this sub-section, the amount of subsidy
\nshall be included in the value of supply of the supplier who receives the subsidy.
\n(3) The value of the supply shall not include any discount which is given\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
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\n(a) before or at the time of the supply if such discount has been duly recorded in 40
\nthe invoice issued in respect of such supply; and
\n(b) after the supply has been effected, if\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(i) such discount is established in terms of an agreement entered into at or
\nbefore the time of such supply and specifically linked to relevant invoices; and
\n(ii) input tax credit as is attributable to the discount on the basis of
\ndocument issued by the supplier has been reversed by the recipient of the
\nsuppl<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(vii) together they directly or indirectly control a third person; or they are
\nmembers of the same family;
\n(b) the term “person” also includes legal persons;
\n(c) persons who are associated in the business of one another in that one is the
\nsole agent or sole distributor or sole concessionaire, howsoever described, of the
\nother, shall be deemed to be related.
\nCHAPTER V
\nINPUT TAX CREDIT
\n16. (1) Every registered person shall, subject to such conditions and restrictions as
\nmay be prescribed and in the manner specified in section 49, be entitled to take credit of input
\ntax charged on any supply of goods or services or both to him which are used or intended to
\nbe used in the course or furtherance of his business and the said amount shall be credited to
\nthe electronic credit ledger of such person.
\n(2) Notwithstanding anything contained in this section, no registered person shall be
\nentitled to the credit of any input tax in respect of any s<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ninstalments, the registered person shall be entitled to take credit upon receipt of the
\nlast lot or instalment:
\nProvided further that where a recipient fails to pay to the supplier of goods or
\nservices or both, other than the supplies on which tax is payable on reverse charge
\nbasis, the amount towards the value of supply along with tax payable thereon within a
\nEligibility and
\nconditions for
\ntaking input
\ntax credit.
\n20
\n20
\nApportionment
\nof credit and
\nblocked
\ncredits.
\nperiod of one hundred and eighty days from the date of issue of invoice by the
\nsupplier, an amount equal to the input tax credit availed by the recipient shall be added
\nto his output tax liability, along with interest thereon, in such manner as may be
\nprescribed:
\nProvided also that the recipient shall be entitled to avail of the credit of input tax
\non payment made by him of the amount towards the value of supply of goods or
\nservices or both along with tax payable the<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\neffecting taxable supplies including zero-rated supplies under this Act or under the Integrated
\nGoods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the
\namount of credit shall be restricted to so much of the input tax as is attributable to the said
\ntaxable supplies including zero-rated supplies.
\n5
\n10 43 of 1961.
\n15
\n20
\n(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed,
\nand shall include supplies on which the recipient is liable to pay tax on reverse charge basis, 25
\ntransactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule
\nII, sale of building.
\n(4) A banking company or a financial institution including a non-banking financial
\ncompany, engaged in supplying services by way of accepting deposits, extending loans or
\nadvances shall have the option to either comply with the provisions of sub-section (2), or 30
\navail of, every month<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n35
\n40
\n45
\n21
\n5
\n10
\n10
\n15
\n20
\n25
\n30
\n(b) the following supply of goods or services or both:\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(i) food and beverages, outdoor catering, beauty treatment, health services,
\ncosmetic and plastic surgery except where an inward supply of goods or services
\nor both of a particular category is used by a registered person for making an
\noutward taxable supply of the same category of goods or services or both or as
\nan element of a taxable composite or mixed supply;
\n(ii) membership of a club, health and fitness centre;
\n(iii) rent-a-cab, life insurance and health insurance except where
\n(A) the Government notifies the services which are obligatory for an
\nemployer to provide to its employees under any law for the time being in
\nforce; or
\n(B) such inward supply of goods or services or both of a particular
\ncategory is used by a registered person for making an outward taxable
\nsupply of the same category of goods or services or both or as part of a
\ntaxab<\/p>\n
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\n(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free
\nsamples; and
\n(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.
\n(6) The Government may prescribe the manner in which the credit referred to in sub-
\n35 sections (1) and (2) may be attributed.
\n40
\n45
\nExplanation. For the purposes of this Chapter and Chapter VI, the expression
\n\u00e2\u00e2\u0082\u00ac\u00c5\u0093plant and machinery\u00e2\u00e2\u0082\u00ac\u009d means apparatus, equipment, and machinery fixed to earth by
\nfoundation or structural support that are used for making outward supply of goods or
\nservices or both and includes such foundation and structural supports but excludes\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(i) land, building or any other civil structures;
\n(ii) telecommunication towers; and
\n(iii) pipelines laid outside the factory premises.
\n18. (1) Subject to such conditions and restrictions as may be prescribed\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) a person who has applied for registration under<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\npreceding the date from which he becomes liable to pay tax under section 9:
\nProvided that the credit on capital goods shall be reduced by such percentage
\npoints as may be prescribed;
\n(d) where an exempt supply of goods or services or both by a registered person
\nbecomes a taxable supply, such person shall be entitled to take credit of input tax in
\nrespect of inputs held in stock and inputs contained in semi-finished or finished goods
\nheld in stock relatable to such exempt supply and on capital goods exclusively used
\nfor such exempt supply on the day immediately preceding the date from which such
\nsupply becomes taxable:
\nProvided that the credit on capital goods shall be reduced by such percentage
\npoints as may be prescribed.
\n(2) A registered person shall not be entitled to take input tax credit under
\nsub-section (1) in respect of any supply of goods or services or both to him after the expiry
\nof one year from the date of issue of tax invoice relating to such <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nexercising of such option or, as the case may be, the date of such exemption:
\nProvided that after payment of such amount, the balance of input tax credit, if any,
\nlying in his electronic credit ledger shall lapse.
\n5
\n10
\n15
\n20
\n25
\n30
\n35
\n(5) The amount of credit under sub-section (1) and the amount payable under 40
\nsub-section (4) shall be calculated in such manner as may be prescribed.
\n(6) In case of supply of capital goods or plant and machinery, on which input tax credit
\nhas been taken, the registered person shall pay an amount equal to the input tax credit taken
\non the said capital goods or plant and machinery reduced by such percentage points as may
\nbe prescribed or the tax on the transaction value of such capital goods or plant and machinery 45
\ndetermined under section 15, whichever is higher:
\nProvided that where refractory bricks, moulds and dies, jigs and fixtures are supplied
\nas scrap, the taxable person may pay tax on the transaction va<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nshall be counted from the date of receipt of inputs by the job worker.
\n(4) The principal shall, subject to such conditions and restrictions as may be prescribed,
\nbe allowed input tax credit on capital goods sent to a job worker for job work.
\n(5) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16,
\nthe principal shall be entitled to take credit of input tax on capital goods even if the capital
\ngoods are directly sent to a job worker for job-work without being first brought to his place
\nof business.
\n(6) Where the capital goods sent for job work are not received back by the principal
\n20 within a period of three years of being sent out, it shall be deemed that such capital goods
\nhad been supplied by the principal to the job worker on the day when the said capital goods
\n25
\n30
\n35
\n40
\n45
\nwere sent out:
\nthree
\nProvided that where the capital goods are sent directly to a job worker, the period of
\nyears shall <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nbe distributed only to that recipient;
\n(d) the credit of tax paid on input services attributable to more than one recipient
\nof credit shall be distributed amongst such recipients to whom the input service is
\nattributable and such distribution shall be pro rata on the basis of the turnover in a
\nState or turnover in a Union territory of such recipient, during the relevant period, to
\nthe aggregate of the turnover of all such recipients to whom such input service is
\nattributable and which are operational in the current year, during the said relevant
\nperiod;
\nTaking input
\ntax credit in
\nrespect of
\ninputs and
\ncapital goods
\nsent for job
\nwork.
\nManner of
\ndistribution of
\ncredit by
\nInput Service
\nDistributor.
\n24
\n24
\nManner of
\nrecovery of
\ncredit
\ndistributed in
\nexcess.
\n(e) the credit of tax paid on input services attributable to all recipients of credit
\nshall be distributed amongst su<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nservices or both having the same Permanent Account Number as that of the
\nInput Service Distributor;
\n(c) the term 'turnover', in relation to any registered person engaged in the
\nsupply of taxable goods as well as goods not taxable under this Act, means the
\nvalue of turnover, reduced by the amount of any duty or tax levied under entry
\n84 of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of
\nList II of the said Schedule.
\n21. Where the Input Service Distributor distributes the credit in contravention
\nof the provisions contained in section 20 resulting in excess distribution of credit to
\none or more recipients of credit, the excess credit so distributed shall be recovered
\nfrom such recipients along with interest, and the provisions of section 73 or section 74,
\nas the case may be, shall, mutatis mutandis, apply for determination of amount to be
\nrecovered.
\n5
\n10
\n15
\n20
\n25
\nCHAPTER VI
\nREGISTRATION
\n30
\nPersons liable
\nfor
\nre<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nwith effect from the date of such transfer or succession.
\n(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of
\ntransfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case
\nmay be, de-merger of two or more companies pursuant to an order of a High Court, Tribunal
\n45
\n5
\n10
\n15
\n20
\n25
\nor otherwise, the transferee shall be liable to be registered, with effect from the date on which
\nthe Registrar of Companies issues a certificate of incorporation giving effect to such order of
\nthe High Court or Tribunal.
\nExplanation. For the purposes of this section,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(i) the expression \u00e2\u00e2\u0082\u00ac\u00c5\u0093aggregate turnover\u00e2\u00e2\u0082\u00ac\u009d shall include all supplies made by the
\ntaxable person,
\nwhether on his own account or made on behalf of all his principals;
\n(ii) the supply of goods, after completion of job-work, by a registered job worker
\nshall be treated as the supply of goods by the principal referred to in section 143<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(i) persons making any inter-State taxable supply;
\nregistration in
\ncertain cases.
\n(ii) casual taxable persons making taxable supply;
\n25
\n(iii) persons who are required to pay tax under reverse charge;
\n30
\n35
\n40
\n(iv) person who are required to pay tax under sub-section (5) of section 9;
\n(v) non-resident taxable persons making taxable supply;
\n(vi) persons who are required to deduct tax under section 51, whether or not
\nseparately registered under this Act;
\n(vii) persons who make taxable supply of goods or services or both on behalf of
\nother taxable persons whether as an agent or otherwise;
\nAct;
\n(viii) Input Service Distributor, whether or not separately registered under this
\n(ix) persons who supply goods or services or both, other than supplies specified
\nunder sub-section (5) of section 9, through such electronic commerce operator who is
\nrequired to collect tax at source under section 52;
\n(x) every electronic com<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nappropriate base line is located.
\n(2) A person seeking registration under this Act shall be granted a single registration
\nin a State or Union territory:
\nProvided that a person having multiple business verticals in a State or Union territory
\nmay be granted a separate registration for each business vertical, subject to such conditions
\nas may be prescribed.
\n(3) A person, though not liable to be registered under section 22 or section 24 may get
\nhimself registered voluntarily, and all provisions of this Act, as are applicable to a registered
\nperson, shall apply to such person.
\n(4) A person who has obtained or is required to obtain more than one registration,
\nwhether in one State or Union territory or more than one State or Union territory shall, in
\nrespect of each such registration, be treated as distinct persons for the purposes of this
\nAct.
\n(5) Where a person who has obtained or is required to obtain registration in a State or
\nUnion territory in respect of a<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nperson in such manner as may be prescribed.
\n(9) Notwithstanding anything contained in sub-section (1),\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) any specialised agency of the United Nations Organisation or any
\nMultilateral Financial Institution and Organisation notified under the United Nations
\n(Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries;
\nand
\n(b) any other person or class of persons, as may be notified by the Commissioner,
\nshall be granted a Unique Identity Number in such manner and for such purposes, including
\nrefund of taxes on the notified supplies of goods or services or both received by them, as
\nmay be prescribed.
\n(10) The registration or the Unique Identity Number shall be granted or rejected after
\ndue verification in such manner and within such period as may be prescribed.
\n5
\n10
\n15
\n20
\n25 43 of 1961.
\n30
\n35
\n46 of 1947.
\n40
\n45
\n27
\n(11) A certificate of registration shall be issued in such form and with effect from su<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nDeemed
\nregistration.
\nSpecial
\nprovisions
\nrelating to
\ncasual taxable
\n27. (1) The certificate of registration issued to a casual taxable person or a non-
\nresident taxable person shall be valid for the period specified in the application for
\nregistration or ninety days from the effective date of registration, whichever is earlier and
\nsuch person shall make taxable supplies only after the issuance of the certificate of person and
\nregistration:
\nProvided that the proper officer may, on sufficient cause being shown by the said
\ntaxable person, extend the said period of ninety days by a further period not exceeding
\nninety days.
\n(2) A casual taxable person or a non-resident taxable person shall, at the time of
\nsubmission of application for registration under sub-section (1) of section 25, make an
\n25 advance deposit of tax in an amount equivalent to the estimated tax liability of such person
\nfor the period for which the registration <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nof such particulars as may be prescribed:
\nProvided further that the proper officer shall not reject the application for amendment
\nin the registration particulars without giving the person an opportunity of being heard.
\n(3) Any rejection or approval of amendments under the State Goods and Services Tax
\n45 Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed
\nto be a rejection or approval under this Act.
\n29. (1) The proper officer may, either on his own motion or on an application filed by
\nthe registered person or by his legal heirs, in case of death of such person, cancel the
\nnon-resident
\ntaxable
\nperson.
\nAmendment
\nof
\nregistration.
\nCancellation
\nof
\nregistration.
\n28
\nRevocation
\nof
\ncancellation
\nof
\nregistration.
\nregistration, in such manner and within such period as may be prescribed, having regard to
\nthe circumstances where,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) the business has been di<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nor
\n(e) registration has been obtained by means of fraud, wilful misstatement or
\nsuppression of facts:
\nProvided that the proper officer shall not cancel the registration without giving
\nthe person an opportunity of being heard.
\n5
\n10
\n15
\n20
\n(3) The cancellation of registration under this section shall not affect the liability of the
\nperson to pay tax and other dues under this Act or to discharge any obligation under this Act 25
\nor the rules made thereunder for any period prior to the date of cancellation whether or not
\nsuch tax and other dues are determined before or after the date of cancellation.
\n(4) The cancellation of registration under the State Goods and Services Tax Act or the
\nUnion Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
\ncancellation of registration under this Act.
\n30
\n(5) Every registered person whose registration is cancelled shall pay an amount, b<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nfor revocation of cancellation of the registration in the prescribed manner within thirty days
\nfrom the date of service of the cancellation order.
\n5
\n29
\n(2) The proper officer may, in such manner and within such period as may be prescribed,
\nby order, either revoke cancellation of the registration or reject the application:
\nProvided that the application for revocation of cancellation of registration shall not be
\nrejected unless the applicant has been given an opportunity of being heard.
\n(3) The revocation of cancellation of registration under the State Goods and Services
\nTax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be
\ndeemed to be a revocation of cancellation of registration under this Act.
\nCHAPTER VII
\nTAX INVOICE, CREDIT AND DEBIT NOTES
\n10
\n31. (1) A registered person supplying taxable goods shall, before or at the time of,\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n25 of services in respect of which\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n30
\n35
\n40
\n40
\n45
\n(a) any other document issued in relation to the supply shall be deemed to be a
\ntax invoice; or
\n(b) tax invoice may not be issued.
\n(3) Notwithstanding anything contained in sub-sections (1) and (2)\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) a registered person may, within one month from the date of issuance of
\ncertificate of registration and in such manner as may be prescribed, issue a revised
\ninvoice against the invoice already issued during the period beginning with the effective
\ndate of registration till the date of issuance of certificate of registration to him;
\n(b) a registered person may not issue a tax invoice if the value of the goods or
\nservices or both supplied is less than two hundred rupees subject to such conditions
\nand in such manner as may be prescribed;
\n(c) a registered person supplying exempted goods or services or both or paying
\ntax under the provisions of section 10 shall issue, instead of a tax invoice, a<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsuch payment;
\n(f) a registered person who is liable to pay tax under sub-section (3) or
\nsub-section (4) of section 9 shall issue an invoice in respect of goods or services or
\nboth received by him from the supplier who is not registered on the date of receipt of
\ngoods or services or both;
\n(g) a registered person who is liable to pay tax under sub-section (3) or sub-
\nsection (4) of section 9 shall issue a payment voucher at the time of making payment to
\nthe supplier.
\n(4) In case of continuous supply of goods, where successive statements of accounts
\nor successive payments are involved, the invoice shall be issued before or at the time each
\nsuch statement is issued or, as the case may be, each such payment is received.
\n(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous
\nsupply of services,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) where the due date of payment is ascertainable from the contract, the invo<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ninclude any revised invoice issued by the supplier in respect of a supply made earlier.
\n32. (1) A person who is not a registered person shall not collect in respect of any
\nsupply of goods or services or both any amount by way of tax under this Act.
\n(2) No registered person shall collect tax except in accordance with the provisions of
\nthis Act or the rules made thereunder.
\n25
\n30
\n35
\n33. Notwithstanding anything contained in this Act or any other law for the time being
\nin force, where any supply is made for a consideration, every person who is liable to pay tax
\nfor such supply shall prominently indicate in all documents relating to assessment, tax 40
\ninvoice and other like documents, the amount of tax which shall form part of the price at
\nwhich such supply is made.
\n34. (1) Where a tax invoice has been issued for supply of any goods or services or
\nboth and the taxable value or tax charged in that tax invoice is found to exceed the taxabl<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(3) Where a tax invoice has been issued for supply of any goods or services or both
\n10 and the taxable value or tax charged in that tax invoice is found to be less than the taxable
\nvalue or tax payable in respect of such supply, the registered person, who has supplied such
\ngoods or services or both, shall issue to the recipient a debit note containing such particulars
\nas may be prescribed.
\n(4) Any registered person who issues a debit note in relation to a supply of goods or
\n15 services or both shall declare the details of such debit note in the return for the month during
\nwhich such debit note has been issued and the tax liability shall be adjusted in such manner
\nas may be prescribed.
\nExplanation. For the purposes of this Act, the expression “debit note” shall include
\na supplementary invoice.
\n20
\n25
\n30
\n35
\nCHAPTER VIII
\nACCOUNTS AND RECORDS
\n35. (1) Every registered person shall keep and maintain, at his principal place of business,
\nas mentioned i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n40 accounts or documents for such purpose as may be specified therein.
\n45
\n(4) Where the Commissioner considers that any class of taxable persons is not in a
\nposition to keep and maintain accounts in accordance with the provisions of this section, he
\nmay, for reasons to be recorded in writing, permit such class of taxable persons to maintain
\naccounts in such manner as may be prescribed.
\n(5) Every registered person whose turnover during a financial year exceeds the
\nprescribed limit shall get his accounts audited by a chartered accountant or a cost accountant
\nAccounts and
\nother records.
\nPeriod of
\nretention of
\naccounts.
\nFurnishing
\ndetails of
\noutward
\nsupplies.
\n32
\nand shall submit a copy of the audited annual accounts, the reconciliation statement under
\nsub-section (2) of section 44 and such other documents in such form and manner as may be
\nprescribed.
\n(6) Subject to the provisions of clause (h) of sub-section<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\noffence under Chapter XIX, shall retain the books of account and other records pertaining to
\nthe subject matter of such appeal or revision or proceedings or investigation for a period of
\none year after final disposal of such appeal or revision or proceedings or investigation, or for 20
\nthe period specified above, whichever is later.
\nCHAPTER IX
\nRETURNS
\n37. (1) Every registered person, other than an Input Service Distributor, a non-resident
\ntaxable person and a person paying tax under the provisions of section 10 or section 51 or
\nsection 52, shall furnish, electronically, in such form and manner as may be prescribed, the
\ndetails of outward supplies of goods or services or both effected during a tax period on or
\nbefore the tenth day of the month succeeding the said tax period and such details shall be
\ncommunicated to the recipient of the said supplies within such time and in such manner as
\nmay <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nstand amended accordingly.
\n(3) Any registered person, who has furnished the details under sub-section (1) for
\nany tax period and which have remained unmatched under section 42 or section 43, shall,
\nupon discovery of any error or omission therein, rectify such error or omission in such
\nmanner as may be prescribed, and shall pay the tax and interest, if any, in case there is a
\n45
\n33
\n51 of 1975.
\nshort payment of tax on account of such error or omission, in the return to be furnished for
\nsuch tax period:
\nProvided that no rectification of error or omission in respect of the details furnished
\nunder sub-section (1) shall be allowed after furnishing of the return under section 39 for the
\n5 month of September following the end of the financial year to which such details pertain, or
\nfurnishing of the relevant annual return, whichever is earlier.
\n10
\nExplanation. For the purposes of this Chapter, the expr<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n20 section 52, shall furnish, electronically, the details of inward supplies of taxable goods or
\nservices or both, including inward supplies of goods or services or both on which the tax is
\npayable on reverse charge basis under this Act and inward supplies of goods or services or
\nboth taxable under the Integrated Goods and Services Tax Act or on which integrated goods
\nand services tax is payable under section 3 of the Customs Tariff Act, 1975, and credit or debit
\n25 notes received in respect of such supplies during a tax period after the tenth day but on or
\nbefore the fifteenth day of the month succeeding the tax period in such form and manner as
\nmay be prescribed:
\nProvided that the Commissioner may, for reasons to be recorded in writing, by
\nnotification, extend the time limit for furnishing such details for such class of taxable persons
\n30 as may be specified therein:
\nProvided further that any extension of time limit notified by the Commissio<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n45 error or omission, in the return to be furnished for such tax period:
\nProvided that no rectification of error or omission in respect of the details furnished
\nunder sub-section (2) shall be allowed after furnishing of the return under section 39 for the
\nmonth of September following the end of the financial year to which such details pertain, or
\nfurnishing of the relevant annual return, whichever is earlier.
\nFurnishing
\ndetails of
\ninward
\nsupplies.
\n34
\n=4
\nFurnishing of
\nreturns.
\n39. (1) Every registered person, other than an Input Service Distributor or a
\nnon-resident taxable person or a person paying tax under the provisions of section 10,
\nsection 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form
\nand manner as may be prescribed, a return, electronically, of inward and outward supplies of
\ngoods or services or both, input tax credit availed, tax payable, tax paid and such ot<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(5) Every registered non-resident taxable person shall, for every calendar month or
\npart thereof, furnish, in such form and manner as may be prescribed, a return, electronically,
\nwithin twenty days after the end of a calendar month or within seven days after the last day
\nof the period of registration specified under sub-section (1) of section 27, whichever is
\nearlier.
\n15
\n20
\n(6) The Commissioner may, for reasons to be recorded in writing, by notification,
\nextend the time limit for furnishing the returns under this section for such class of registered 25
\npersons as may be specified therein:
\nProvided that any extension of time limit notified by the Commissioner of State tax or
\nUnion territory tax shall be deemed to be notified by the Commissioner.
\n(7) Every registered person, who is required to furnish a return under sub-section (1)
\nor sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax
\ndue as per<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nallowed after the due date for furnishing of return for the month of September or second
\nquarter following the end of the financial year, or the actual date of furnishing of relevant
\nannual return, whichever is earlier.
\n(10) A registered person shall not be allowed to furnish a return for a tax period if the
\nreturn for any of the previous tax periods has not been furnished by him.
\n45
\n51 of 1975.
\n51 of 1975.
\n5
\n10
\n15
\n20
\n25
\n35
\n40. Every registered person who has made outward supplies in the period between
\nthe date on which he became liable to registration till the date on which registration has
\nbeen granted shall declare the same in the first return furnished by him after grant of
\nregistration.
\n41. (1) Every registered person shall, subject to such conditions and restrictions as
\nmay be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his
\nreturn and such amount shall be credited on a provisional basis to<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsupply that match with the details of corresponding outward supply or with the integrated
\ngoods and services tax paid under section 3 of the Customs Tariff Act, 1975 in respect of
\ngoods imported by him shall be finally accepted and such acceptance shall be communicated,
\nin such manner as may be prescribed, to the recipient.
\n(3) Where the input tax credit claimed by a recipient in respect of an inward supply is
\nin excess of the tax declared by the supplier for the same supply or the outward supply is not
\ndeclared by the supplier in his valid returns, the discrepancy shall be communicated to both
\nsuch persons in such manner as may be prescribed.
\n(4) The duplication of claims of input tax credit shall be communicated to the recipient
\n30 in such manner as may be prescribed.
\n(5) The amount in respect of which any discrepancy is communicated under sub-
\nsection (3) and which is not rectified by the sup<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n45 corresponding additions are made under the said sub-sections.
\n(9) Where any reduction in output tax liability is accepted under sub-section (7), the
\ninterest paid under sub-section (8) shall be refunded to the recipient by crediting the amount
\nin the corresponding head of his electronic cash ledger in such manner as may be prescribed:
\nreclaim of
\ninput tax
\ncredit.
\nMatching,
\nreversal and
\nreclaim of
\nreduction in
\noutput tax
\nliability.
\n36
\nProvided that the amount of interest to be credited in any case shall not exceed the
\namount of interest paid by the supplier.
\n(10) The amount reduced from the output tax liability in contravention of the
\nprovisions of sub-section (7) shall be added to the output tax liability of the recipient in his
\nreturn for the month in which such contravention takes place and such recipient shall be
\nliable to pay interest on the amount so added at the rate specified in sub-section (3) o<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nis not declared by the recipient in his valid returns, the discrepancy shall be communicated
\nto both such persons in such manner as may be prescribed.
\n(4) The duplication of claims for reduction in output tax liability shall be communicated
\nto the supplier in such manner as may be prescribed.
\n(5) The amount in respect of which any discrepancy is communicated under sub-
\nsection (3) and which is not rectified by the recipient in his valid return for the month in
\nwhich discrepancy is communicated shall be added to the output tax liability of the supplier,
\nin such manner as may be prescribed, in his return for the month succeeding the month in
\nwhich the discrepancy is communicated.
\n(6) The amount in respect of any reduction in output tax liability that is found to be on
\naccount of duplication of claims shall be added to the output tax liability of the supplier in his
\nreturn for the month in which such duplication i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\namount of interest paid by the recipient.
\n20
\n25
\n30
\n35
\n40
\n(10) The amount reduced from output tax liability in contravention of the provisions of 45
\nsub-section (7) shall be added to the output tax liability of the supplier in his return for the
\nmonth in which such contravention takes place and such supplier shall be liable to pay
\ninterest on the amount so added at the rate specified in sub-section (3) of section 50.
\n37
\n44. (1) Every registered person, other than an Input Service Distributor, a person
\npaying tax under section 51 or section 52, a casual taxable person and a non-resident taxable
\nperson, shall furnish an annual return for every financial year electronically in such form and
\nmanner as may be prescribed on or before the thirty-first day of December following the end
\n5 of such financial
\nyear.
\n(2) Every registered person who is required to get his accounts audited in accordance
\nwith the provisions of sub-section (5) of section 35 shall fu<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsection 45 by the due date shall pay a late fee of one hundred rupees for every day
\nduring which such failure continues subject to a maximum amount of five thousand
\nrupees.
\n(2) Any registered person who fails to furnish the return required under section 44 by
\n25 the due date shall be liable to pay a late fee of one hundred rupees for every day during which
\nsuch failure continues subject to a maximum of an amount calculated at a quarter per cent. of
\nhis turnover in the State or Union territory.
\n48. (1) The manner of approval of goods and services tax practitioners, their eligibility
\nconditions, duties and obligations, manner of removal and other conditions relevant for their
\n30 functioning shall be such as may be prescribed.
\n35
\n(2) A registered person may authorise an approved goods and services tax practitioner
\nto furnish the details of outward supplies under section 37, the details of inward supplies\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(2) The input tax credit as self-assessed in the return of a registered person shall be
\ncredited to his electronic credit ledger, in accordance with section 41, to be maintained in
\nsuch manner as may be prescribed.
\nPayment of
\ntax, interest,
\npenalty and
\nother
\namounts.
\n38
\n(3) The amount available in the electronic cash ledger may be used for making any
\npayment towards tax, interest, penalty, fees or any other amount payable under the provisions
\nof this Act or the rules made thereunder in such manner and subject to such conditions and
\nwithin such time as may be prescribed.
\n(4) The amount available in the electronic credit ledger may be used for making any
\npayment towards output tax under this Act or under the Integrated Goods and Services Tax
\nAct in such manner and subject to such conditions and within such time as may be prescribed.
\n(5) The amount of input tax credit available in the electronic credit ledger of the registered
\nperson on account of
\n(a) i<\/p>\n
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\nof tax, interest, penalty, fee or any other amount payable under this Act or the rules made
\nthereunder may be refunded in accordance with the provisions of section 54.
\n(7) All liabilities of a taxable person under this Act shall be recorded and maintained in
\nan electronic liability register in such manner as may be prescribed.
\n(8) Every taxable person shall discharge his tax and other dues under this Act or the
\nrules made thereunder in the following order, namely:\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n5
\n10
\n15
\n20
\n25
\n(a) self-assessed tax, and other dues related to returns of previous tax periods;
\n(b) self-assessed tax, and other dues related to the return of the current tax period;
\n(c) any other amount payable under this Act or the rules made thereunder
\nincluding the demand determined under section 73 or section 74;
\n30
\nInterest on
\ndelayed
\npayment of
\ntax.
\n(9) Every person who has paid the tax on goods or services or both under this Act
\nshall, unless the contrary is proved b<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n35
\n40
\n45
\n39
\n(2) The interest under sub-section (1) shall be calculated, in such manner as may be
\nprescribed, from the day succeeding the day on which such tax was due to be paid.
\n(3) A taxable person who makes an undue or excess claim of input tax credit under sub-
\nsection (10) of section 42 or undue or excess reduction in output tax liability under sub-
\n5 section (10) of section 43, shall pay interest on such undue or excess claim or on such undue
\nor excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as
\nmay be notified by the Government on the recommendations of the Council.
\n10
\n15
\n20
\n51. (1) Notwithstanding anything to the contrary contained in this Act, the Government
\nmay mandate,
\n(a) a department or establishment of the Central Government or State
\nGovernment; or
\n(b) local authority; or
\n(c) Governmental agencies; or
\n(d) such persons or category of persons as may be notified by the Government
\non <\/p>\n
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\nsuch manner as may be prescribed.
\n(3) The deductor shall furnish to the deductee a certificate mentioning therein the
\ncontract value, rate of deduction, amount deducted, amount paid to the Government and
\nsuch other particulars in such manner as may be prescribed.
\n(4) If any deductor fails to furnish to the deductee the certificate, after deducting the
\ntax at source, within five days of crediting the amount so deducted to the Government, the
\ndeductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day
\n35 after the expiry of such five day period until the failure is rectified, subject to a maximum
\namount of five thousand rupees.
\n40
\n45
\n(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted
\nand reflected in the return of the deductor furnished under sub-section (3) of section 39, in
\nsuch manner as may be prescribed.
\n(6) If any deductor fails to pay to the Gover<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ntaxable supplies made through it by other suppliers where the consideration with respect to
\nsuch supplies is to be collected by the operator.
\n5
\nExplanation. For the purposes of this sub-section, the expression \u00e2\u00e2\u0082\u00ac\u00c5\u0093net value of
\ntaxable supplies\u00e2\u00e2\u0082\u00ac\u009d shall mean the aggregate value of taxable supplies of goods or services or
\nboth, other than services notified under sub-section (5) of section 9, made during any month
\nby all registered persons through the operator reduced by the aggregate value of taxable 10
\nsupplies returned to the suppliers during the said month.
\n(2) The power to collect the amount specified in sub-section (1) shall be without
\nprejudice to any other mode of recovery from the operator.
\n(3) The amount collected under sub-section (1) shall be paid to the Government by the
\noperator within ten days after the end of the month in which such collection is made, in such
\nmanner as may be prescribe<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nomission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection
\nor enforcement activity by the tax authorities, he shall rectify such omission or incorrect 30
\nparticulars in the statement to be furnished for the month during which such omission
\nor incorrect particulars are noticed, subject to payment of interest, as specified in
\nsub-section (1) of section 50:
\nProvided that no such rectification of any omission or incorrect particulars shall be
\nallowed after the due date for furnishing of statement for the month of September following
\nthe end of the financial year or the actual date of furnishing of the relevant annual statement,
\nwhichever is earlier.
\n(7) The supplier who has supplied the goods or services or both through the operator
\nshall claim credit, in his electronic cash ledger, of the amount collected and reflected in the
\nstatement of the operator furnished under sub-section (4), in such manne<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nfor the month succeeding the month in which the discrepancy is communicated in such
\nmanner as may be prescribed.
\n(11) The concerned supplier, in whose output tax liability any amount has been added
\nunder sub-section (10), shall pay the tax payable in respect of such supply along with
\ninterest, at the rate specified under sub-section (1) of section 50 on the amount so added
\nfrom the date such tax was due till the date of its payment.
\n(12) Any authority not below the rank of Deputy Commissioner may serve a notice,
\neither before or during the course of any proceedings under this Act, requiring the operator
\nto furnish such details relating to\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) supplies of goods or services or both effected through such operator during
\nany period; or
\n(b) stock of goods held by the suppliers making supplies through such operator
\nin the godowns or warehouses, by whatever name called, managed by such ope<\/p>\n
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\n30 of section 39, the amount collected as central tax shall stand reduced by an amount equal to
\nsuch credit so utilised and the Central Government shall transfer an amount equal to the
\namount so reduced from the central tax account to the integrated tax account in such manner
\nand within such time as may be prescribed.
\n35
\nCHAPTER XI
\nREFUNDS
\n54. (1) Any person claiming refund of any tax and interest, if any, paid on such tax or
\nany other amount paid by him, may make an application before the expiry of two years from
\nthe relevant date in such form and manner as may be prescribed:
\nProvided that a registered person, claiming refund of any balance in the electronic
\n40 cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim
\nsuch refund in the return furnished under section 39 in such manner as may be prescribed.
\n45
\n(2) A specialised agency of the United Nations Organisation or any Multilateral Fina<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsupplies), except supplies of goods or services or both as may be notified by the
\nGovernment on the recommendations of the Council:
\n5
\nProvided further that no refund of unutilised input tax credit shall be allowed in 10
\ncases where the goods exported out of India are subjected to export duty:
\nProvided also that no refund of input tax credit shall be allowed, if the supplier of
\ngoods or services or both avails of drawback in respect of central tax or claims refund
\nof the integrated tax paid on such supplies.
\n(4) The application shall be accompanied by\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) such documentary evidence as may be prescribed to establish that a refund
\nis due to the applicant; and
\n(b) such documentary or other evidence (including the documents referred to in
\nsection 33) as the applicant may furnish to establish that the amount of tax and interest,
\nif any, paid on such tax or any other amount paid in relation to which such refund is
\nclaimed was collected from, or paid by, him and t<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nprovisional basis, ninety per cent. of the total amount so claimed, excluding the amount of 35
\ninput tax credit provisionally accepted, in such manner and subject to such conditions,
\nlimitations and safeguards as may be prescribed and thereafter make an order under sub-
\nsection (5) for final settlement of the refund claim after due verification of documents
\nfurnished by the applicant.
\n(7) The proper officer shall issue the order under sub-section (5) within sixty days from 40
\nthe date of receipt of application complete in all respects.
\n(8) Notwithstanding anything contained in sub-section (5), the refundable amount
\nshall, instead of being credited to the Fund, be paid to the applicant, if such amount is
\nrelatable to
\n(a) refund of tax paid on zero-rated supplies of goods or services or both or on 45
\ninputs or input services used in making such zero-rated supplies;
\n(b) refund of unutilised inp<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ndefaulted in furnishing any return or who is required to pay any tax, interest or penalty, which
\nhas not been stayed by any court, Tribunal or Appellate Authority by the specified date, the
\n15 proper
\nofficer may\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n20
\n(a) withhold payment of refund due until the said person has furnished the
\nreturn or paid the tax, interest or penalty, as the case may be;
\n(b) deduct from the refund due, any tax, interest, penalty, fee or any other amount
\nwhich the taxable person is liable to pay but which remains unpaid under this Act or
\nunder the existing law.
\nExplanation. For the purposes of this sub-section, the expression \u00e2\u00e2\u0082\u00ac\u00c5\u0093specified date”
\nshall mean the last date for filing an appeal under this Act.
\n(11) Where an order giving rise to a refund is the subject matter of an appeal or further
\nproceedings or where any other proceedings under this Act is pending and the Commissioner
\n25 is of the opinion that grant of such refund is likely to adversely affect the re<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nor sub-section (6) shall be paid to an applicant, if the amount is less than one thousand rupees.
\nExplanation. For the purposes of this section,\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(1) \u00e2\u00e2\u0082\u00ac\u00c5\u0093refund\u00e2\u00e2\u0082\u00ac\u009d includes refund of tax paid on zero-rated supplies of goods or
\nservices or both or on inputs or input services used in making such zero-rated supplies,
\nor refund of tax on the supply of goods regarded as deemed exports, or refund of
\nunutilised input tax credit as provided under sub-section (3).
\n(2) “relevant date” means\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) in the case of goods exported out of India where a refund of tax paid is
\navailable in respect of goods themselves or, as the case may be, the inputs or
\ninput services used in such goods,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n44
\nRefund in
\ncertain cases.
\nInterest on
\ndelayed
\nrefunds.
\n(i) if the goods are exported by sea or air, the date on which the ship
\nor the aircraft in which such goods are loaded, leaves <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ndecree, order or direction of the Appellate Authority, Appellate Tribunal or any
\ncourt, the date of communication of such judgment, decree, order or direction;
\n(e) in the case of refund of unutilised input tax credit under
\nsub-section (3), the end of the financial year in which such claim for refund
\narises;
\n(f) in the case where tax is paid provisionally under this Act or the rules
\nmade thereunder, the date of adjustment of tax after the final assessment thereof;
\n(g) in the case of a person, other than the supplier, the date of receipt of
\ngoods or services or both by such person; and
\n(h) in any other case, the date of payment of tax.
\n55. The Government may, on the recommendations of the Council, by notification,
\nspecify any specialised agency of the United Nations Organisation or any Multilateral Financial
\nInstitution and Organisation notified under the United Nations (Privileges and Immunities)
\nAct, 1947, Consulate or Embassy of foreign countries and any other perso<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nand the same is not refunded within sixty days from the date of receipt of application filed 45
\nconsequent to such order, interest at such rate not exceeding nine per cent. as may be
\nnotified by the Government on the recommendations of the Council shall be payable in
\n46 of 1947.
\n45
\nrespect of such refund from the date immediately after the expiry of sixty days from the date
\nof receipt of application till the date of refund.
\nExplanation. For the purposes of this section, where any order of refund is made by
\nan Appellate Authority, Appellate Tribunal or any court against an order of the proper
\n5 officer under sub-section (5) of section 54, the order passed by the Appellate Authority,
\nAppellate Tribunal or by the court shall be deemed to be an order passed under the said
\nsub-section (5).
\n10
\n57. The Government shall constitute a Fund, to be called the Consumer Welfare Fund
\nand there shall be credited to the Fund,\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) the amount referre<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthereto, he may request the proper officer in writing giving reasons for payment of tax on a
\nprovisional basis and the proper officer shall pass an order, within a period not later than
\nninety days from the date of receipt of such request, allowing payment of tax on provisional
\nbasis at such rate or on such value as may be specified by him.
\n30
\n(2) The payment of tax on provisional basis may be allowed, if the taxable person
\nexecutes a bond in such form as may be prescribed, and with such surety or security as the
\nproper officer may deem fit, binding the taxable person for payment of the difference between
\nthe amount of tax as may be finally assessed and the amount of tax provisionally assessed.
\n(3) The proper officer shall, within a period not exceeding six months from the date of
\n35 the communication of the order issued under sub-section (1), pass the final assessment
\norder after t<\/p>\n
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\nassessment.
\n(5) Where the registered person is entitled to a refund consequent to the order of final
\nassessment under sub-section (3), subject to the provisions of sub-section (8) of section 54,
\ninterest shall be paid on such refund as provided in section 56.
\n61. (1) The proper officer may scrutinize the return and related particulars furnished by
\nthe registered person to verify the correctness of the return and inform him of the discrepancies
\nnoticed, if any, in such manner as may be prescribed and seek his explanation thereto.
\n(2) In case the explanation is found acceptable, the registered person shall be informed
\naccordingly and no further action shall be taken in this regard.
\n(3) In case no satisfactory explanation is furnished within a period of thirty days of
\nbeing informed by the proper officer or such further period as may be permitted by him or
\nwhere the registered person, after accepting the discrepancies, fails to take the corrective
\nmeasure in his r<\/p>\n