THE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017
GST
Dated:- 27-3-2017
THE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017
\nGST bills – Clause by Clause
\n=============
\nDocument 1
\nCLAUSES
\nTO BE INTRODUCED IN LOK SABHA
\nBill No. 59 of 2017
\nTHE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017
\nARRANGEMENT OF CLAUSES
\nCHAPTER I
\nPRELIMINARY
\n1. Short title, extent and commencement.
\n2. Definitions.
\nCHAPTER II
\nADMINISTRATION
\n3. Officers under this Act.
\n4. Authorisation of officers.
\n5. Powers of officers.
\n6. Authorisation of officers of central tax as proper officer in certain circumstances.
\n7. Levy and collection.
\nCHAPTER III
\nLEVY AND COLLECTION OF TAX
\n8. Power to grant exemption from tax.
\n9. Payment of tax.
\n10. Transfer of input tax credit.
\nCHAPTER IV
\nPAYMENT OF TAX
\nCHAPTER V
\nINSPECTION, SEARCH, SEIZURE AND ARREST
\n11. Officers required to assist
\nproper officers.
\nCHAPTER VI
\nDEMANDS AND RECOVERY
\n12. Tax wrongfully collected and paid to Central Gov<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n es and the matter connected therewith or incidental = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ans the Union territory tax = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n officer of a Union territory tax who = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the Central Government on the recommendations of the Council = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n resence in the taxable territory, any person representing such electronic commerce operator = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n aid section of the Central Goods = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n lways, Customs, and those officers engaged in the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nd = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f the Union territory) Appellate Authority for Advance Ruling for = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the period ending with the day immediately preceding the appointed = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n redit was admissible as input tax credit under the existing law and is also admissible as = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Transitional = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 6) A registered person, who was either paying tax at a fixed rate or paying a fixed = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ointed day, the input tax credit shall be liable to be recovered = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ts or any other process, are returned = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e appointed day, the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n paid = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nlaw, shall be disposed of in accordance with the provisions of the existing law, and if any = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n be recovered as an arrear of tax under this Act and the amount so recovered = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n thereon if such goods are returned within = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n eizure and arrest; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n this Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e under = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n uniformity of tax rates and structure across the States and = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t. as recommended by the Goods and Services Tax = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e proposed Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n operator = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n . = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n be utilised for the purposes of this Bill. Thus there will be no extra financial = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" THE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017 GSTDated:- 27-3-2017THE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017 GST bills – Clause by Clause ============= Document 1 CLAUSES TO BE INTRODUCED IN LOK SABHA Bill No. 59 of 2017 THE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017 ARRANGEMENT OF CLAUSES CHAPTER I PRELIMINARY … Continue reading “THE UNION TERRITORY GOODS AND SERVICES TAX BILL, 2017”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2259","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2259"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/2259\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nthereto.
\nBE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as
\nfollows:-
\nCHAPTER I
\nPRELIMINARY
\n1. (1) This Act may be called the Union Territory Goods and Services Tax Act, 2017.
\n(2) It extends to the Union territories of the Andaman and Nicobar Islands,
\nLakshadweep, Dadra and Nagar Haveli, Daman and Diu, Chandigarh and other territory.
\n(3) It shall come into force on such date as the Central Government may, by notification
\nin the Official Gazette, appoint:
\nProvided that different dates may be appointed for different provisions of this Act
\nand any reference in any such provision to the commencement of this Act shall be construed
\nas a reference to the coming into force of that provision.
\nShort title,
\nextent and
\ncommencement.
\n2
\nDefinitions.
\nOfficers under
\nthis Act.
\nAuthorisation
\nof officers.
\n2. In this Act, unless the context otherwise requires,
\n(1) “appointed day” means the date on whi<\/p>\n
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\nchargeable under this Act on taxable supply of goods or services or both made by
\nhim or by his agent but excludes tax payable by him on reverse charge basis;
\n(8) \u00e2\u00e2\u0082\u00ac\u00c5\u0093Union territory” means the territory of,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(i) the Andaman and Nicobar Islands;
\n(ii) Lakshadweep;
\n(iii) Dadra and Nagar Haveli;
\n(iv) Daman and Diu;
\n(v) Chandigarh; or
\n(vi) other territory.
\nExplanation. For the purposes s of this Act, each of the territories specified
\nin sub-clauses (i) to (vi) shall be considered to be a separate Union territory;
\n(9) \u00e2\u00e2\u0082\u00ac\u00c5\u0093Union territory tax\u00e2\u00e2\u0082\u00ac\u009d means the tax levied under this Act;
\n(10) words and expressions used and not defined in this Act but defined in the
\nCentral Goods and Services Tax Act, the Integrated Goods and Services Tax Act, the
\nState Goods and Services Tax Act, and the Goods and Services Tax (Compensation
\nto States) Act, shall have the same meaning as assigned to them in those Acts.
\nCHAPTER II
\nADMINISTRATION
\n3. The A<\/p>\n
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\nis subordinate to him.
\n(3) The Commissioner may, subject to such conditions and limitations as may be
\nspecified in this behalf by him, delegate his powers to any other officer subordinate to him.
\n(4) Notwithstanding anything contained in this section, an Appellate Authority shall
\n10 not exercise the powers and discharge the duties conferred or imposed on any other officer
\nof Union territory tax.
\n6. (1) Without prejudice to the provisions of this Act, the officers appointed under the
\nCentral Goods and Services Tax Act are authorised to be the proper officers for the purposes
\nof this Act, subject to such conditions as the Government shall, on the recommendations of
\n15 the Council, by notification, specify.
\n20
\n20
\n(2) Subject to the conditions specified in the notification issued under
\nsub-section (1),\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) where any proper officer issues an order under this Act, he shall also issue
\nan order under the Central Goods and Services T<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nand collected in such manner as may be prescribed and shall be paid by the taxable person.
\n(2) The Union territory tax on the supply of petroleum crude, high speed diesel,
\nmotor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be
\nlevied with effect from such date as may be notified by the Central Government on the
\nrecommendations of the Council.
\n35
\n(3) The Central Government may, on the recommendations of the Council, by
\n40 notification, specify categories of supply of goods or services or both, the tax on which
\nshall be paid on reverse charge basis by the recipient of such goods or services or both and
\nall the provisions of this Act shall apply to such recipient as if he is the person liable for
\npaying the tax in relation to the supply of such goods or services or both.
\n(4) The Union territory tax in respect of the supply of taxable goods or services or
\n45 both by a supplier, who i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nfor any purpose in the taxable territory shall be liable to pay tax:
\nProvided further that where an electronic commerce operator does not have a physical
\npresence in the taxable territory and also he does not have a representative in the said
\nterritory, such electronic commerce operator shall appoint a person in the taxable territory
\nfor the purpose of paying tax and such person shall be liable to pay tax.
\n8. (1) Where the Central Government is satisfied that it is necessary in the public
\ninterest so to do, it may, on the recommendations of the Council, by notification, exempt
\ngenerally either absolutely or subject to such conditions as may be specified therein, goods
\nor services or both of any specified description from the whole or any part of the tax leviable
\nthereon with effect from such date as may be specified in such notification.
\n(2) Where the Central Government is satisfied t<\/p>\n
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\nand Services Tax Act shall be deemed to be a notification or, as the case may be, an order
\nissued under this Act.
\n5
\n10
\n15
\n20
\n25
\n30
\nExplanation. For the purposes of this section, where an exemption in respect of
\nany goods or services or both from the whole or part of the tax leviable thereon has been
\ngranted absolutely, the registered person supplying such goods or services or both shall not 35
\ncollect the tax, in excess of the effective rate, on such supply of goods or services or both.
\nCHAPTER IV
\nPAYMENT OF TAX
\n9. The amount of input tax credit available in the electronic credit ledger of the
\nregistered person on account of,\u00e2\u00e2\u0082\u00ac\u00e2\u0080\u009d
\n(a) integrated tax shall first be utilised towards payment of integrated tax and
\nthe amount remaining, if any, may be utilised towards the payment of central tax and
\nState tax, or as the case may be, Union territory tax, in that order;
\n40
\n(c) the Union territory tax shall first be utilised towards payme<\/p>\n
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\ncollection of land revenue, including village officers, and officers of central tax and officers
\nof the State tax shall assist the proper officers in the implementation of this Act.
\n(2) The Government may, by notification, empower and require any other class of
\n15 officers to assist the proper officers in the implementation of this Act when called
\ndo so by the Commissioner.
\nupon to
\nTransfer
\nof
\ninput tax credit.
\nOfficers
\nrequired to
\nassist proper
\nofficers.
\nCHAPTER VI
\nDEMANDS AND RECOVERY
\n20
\n12. (1) A registered person who has paid the central tax and the Union territory tax on
\na transaction considered by him to be an intra-State supply, but which is subsequently held
\nto be an inter-State supply, shall be refunded the amount of taxes so paid in such manner
\nand subject to such conditions as may be prescribed.
\n(2) A registered person who has paid integrated tax on a transaction considered by
\nhim to be an inter-State su<\/p>\n
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\npaid to
\nCentral
\nGovernment
\nor Union
\nterritory
\nGovernment.
\nRecovery of
\ntax.
\nCHAPTER VII
\nADVANCE RULING
\n14. In this Chapter, unless the context otherwise requires,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) “advance ruling\u00e2\u00e2\u0082\u00ac\u009d means a decision provided by the Authority or the Appellate
\nAuthority to an applicant on matters or on questions specified in sub-section (2) of
\nsection 97 or sub-section (1) of section 100 of the Central Goods and Services Tax
\nAct, in relation to the supply of goods or services or both being undertaken or proposed
\nto be undertaken by the applicant;
\n(b) “Appellate Authority\u00e2\u00e2\u0082\u00ac\u009d means the Appellate Authority for Advance Ruling
\nconstituted under section 16.
\n(c) “applicant\u00e2\u00e2\u0082\u00ac\u009d means any person registered or desirous of obtaining registration
\nunder this Act;
\nDefinitions.
\nConstitution of
\nAuthority for
\nAdvance
\nRuling.
\nConstitution of
\nAppellate
\nAuthority for
\nAdvance
\nRuling.
\n6
\n(d) “application\u00e2\u00e2\u0082\u00ac\u009d means an application made to the Authority under
\nsub-sectio<\/p>\n
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\nGoods and Services Tax for hearing appeals against the advance ruling pronounced by the
\nAdvance Ruling Authority:
\nProvided that the Central Government may, on the recommendations of the Council,
\nnotify any Appellate Authority located in any State or any other Union territory to act as the
\nAppellate Authority for the purposes of this Act.
\n(2) The Appellate Authority shall consist of\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(i) the Chief Commissioner of central tax as designated by the Board; and
\n(ii) the Commissioner of Union territory tax having jurisdiction over the
\napplicant.
\n10
\n15
\n20
\n25
\nMigration of
\nexisting tax
\npayers.
\nTransitional
\narrangements
\nfor input tax
\ncredit.
\nCHAPTER VIII
\nTRANSITIONAL PROVISIONS
\n17. (1) On and from the appointed day, every person registered under any of the
\nexisting laws and having a valid Permanent Account Number shall be issued a certificate of
\nregistration on provisional basis, subject to such cond<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nday, furnished by him under the existing law, not later than ninety days after the said day, in 45
\nsuch manner as may be prescribed:
\n10
\n74 of 1956.
\n7
\n5
\nProvided that the registered person shall not be allowed to take credit in the following
\ncircumstances, namely:\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(i) where the said amount of credit is not admissible as input tax credit under
\nthis Act; or
\n(ii) where he has not furnished all the returns required under the existing law
\nfor the period of six months immediately preceding the appointed day; or
\n(iii) where the said amount of credit relates to goods sold under such exemption
\nnotifications as are notified by the Government:
\nProvided further that so much of the said credit as is attributable to any claim related
\nto section 3, sub-section (3) of section 5, section 6 or section 6A or sub-section (8) of
\nsection 8 of the Central Sales Tax Act, 1956 that is not substantiated in the manner, an<\/p>\n
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\ninput tax credit under this Act.
\nExplanation. For the purposes of this section, the expression “unavailed input tax
\ncredit” means the amount that remains after subtracting the amount of input tax credit
\nalready availed in respect of capital goods by the taxable person under the existing law
\nfrom the aggregate amount of input tax credit to which the said person was entitled in
\nrespect of the said capital goods under the existing law.
\n(3) A registered person, who was not liable to be registered under the existing law or
\nwho was engaged in the sale of exempted goods or tax free goods or goods which have
\nsuffered tax at first point of their sale in the Union territory and the subsequent sales of
\nwhich are not subject to tax in the Union territory under the existing law but which are
\nliable to tax under this Act or where the person was entitled to the credit of input tax at the
\n35 time of s<\/p>\n
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\nprovisions
\nrelating to job
\nwork.
\npayment of tax in respect of inputs, then, such registered person shall, subject to such
\nconditions, limitations and safeguards as may be prescribed, including that the said
\ntaxable person shall pass on the benefit of such credit by way of reduced prices to the
\nrecipient, be allowed to take credit at such rate and in such manner as may be
\nprescribed.
\n(4) A registered person, who was engaged in the sale of taxable goods as well as
\nexempted goods or tax free goods under the existing law but which are liable to tax under
\nthis Act, shall be entitled to take, in his electronic credit ledger,\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) the amount of credit of the value added tax and entry tax, if any, carried
\nforward in a return furnished under the existing law by him in accordance with the
\nprovisions of sub-section (1); and
\n(b) the amount of credit of the value added tax and entry tax, if any, in respect
\nof inputs held in stock and inputs contained in semi-fini<\/p>\n
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\namount in lieu of the tax payable under the existing law shall be entitled to take, in his
\nelectronic credit ledger, credit of value added tax in respect of inputs held in stock and
\ninputs contained in semi-finished or finished goods held in stock on the appointed day
\nsubject to the following conditions, namely:\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(i) such inputs or goods are used or intended to be used for making taxable
\nsupplies under this Act;
\n(ii) the said registered person is not paying tax under section 10 of the Central
\nGoods and Services Tax Act;
\n(iii) the said registered person is eligible for input tax credit on such inputs
\nunder this Act;
\n(iv) the said registered person is in possession of invoice or other prescribed
\ndocuments evidencing payment of tax under the existing law in respect of inputs; and
\n(v) such invoices or other prescribed documents were issued not earlier than
\ntwelve months immediately prec<\/p>\n
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\n5 in accordance with the provisions of clause (a) of sub-section (8) of section 142 of the
\nCentral Goods and Services Tax Act.
\n15
\n(2) Where any semi-finished goods had been despatched from any place of business
\nto any other premises for carrying out certain manufacturing processes in accordance with
\nthe provisions of existing law prior to the appointed day and such goods (hereinafter in this
\nsection referred to as “the said goods”) are returned to the said place on or after the appointed
\nday, no tax shall be payable if the said goods, after undergoing manufacturing processes or
\notherwise, are returned to the said place within six months from the appointed day:
\nProvided that the period of six months may, on sufficient cause being shown, be
\nextended by the Commissioner for a further period not exceeding two months:
\nProvided further that if the said goods are not returned within a period specified in
\nthis sub-se<\/p>\n
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\nto such place within six months from the appointed day:
\nProvided that the period of six months may, on sufficient cause being shown, be
\nextended by the Commissioner for a further period not exceeding two months:
\nProvided further that if the said goods are not returned within the period specified in
\nthis sub-section, the input tax credit shall be liable to be recovered in accordance with the
\nprovisions of clause (a) of sub-section (8) of section 142 of the Central Goods and Services
\nTax Act:
\nProvided also that the person despatching the goods may, in accordance with the
\nprovisions of the existing law, transfer the said goods from the said other premises on
\npayment of tax in India or without payment of tax for exports within six months or the
\nextended period, as the case may be, from the appointed day.
\n(4) The tax under sub-sections (1), (2) and (3) shall not be payable only if the person
\ndespatching the goods and the job worker declare <\/p>\n
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\nprice of any goods is revised upwards on or after the appointed day, the registered person
\nwho had sold such goods shall issue to the recipient a supplementary invoice or debit note,
\ncontaining such particulars as may be prescribed, within thirty days of such price revision
\nand for the purposes of this Act, such supplementary invoice or debit note shall be deemed
\nto have been issued in respect of an outward supply made under this Act.
\n(b) Where, in pursuance of a contract entered into prior to the appointed day, the
\nprice of any goods is revised downwards on or after the appointed day, the registered person
\nwho had sold such goods may issue to the recipient a credit note, containing such particulars
\nas may be prescribed, within thirty days of such price revision and for the purposes of this
\nAct such credit note shall be deemed to have been issued in respect of an outward supply
\nmade under this Act:
\nProvided that the registered person shall be allowed to<\/p>\n
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\nunder the existing law in respect of the goods exported before or after the appointed day
\nshall be disposed of in accordance with the provisions of the existing law:
\nProvided that where any for refund of input tax credit is fully or partially rejected, the
\namount so rejected shall lapse:
\nProvided further that no refund shall be allowed of any amount of input tax credit
\nwhere the balance of the said amount as on the appointed day has been carried forward
\nunder this Act.
\n(5) (a) Every proceeding of appeal, revision, review or reference relating to a claim
\nfor input tax credit initiated whether before, on or after the appointed day, under the existing
\nlaw shall be disposed of in accordance with the provisions of the existing law, and any
\namount of credit found to be admissible to the claimant shall be refunded to him in cash in
\naccordance with the provisions of the existing law and the amount rejected, if any, shall not
\nbe admissible as input tax credit under this Act:\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\namount becomes recoverable as a result of such appeal, revision, review or reference, the
\nsame shall, unless recovered under the existing law, be recovered as an arrear of tax under
\nthis Act and amount so recovered shall not be admissible as input tax credit under this Act.
\n(b) Every proceeding of appeal, revision, review or reference relating to any output
\ntax liability initiated whether before, on or after the appointed day under the existing law,
\nshall be disposed of in accordance with the provisions of the existing law, and any amount
\nfound to be admissible to the claimant shall be refunded to him in cash in accordance with
\nthe provisions of the existing law and the amount rejected, if any, shall not be admissible as
\ninput tax credit under this Act.
\n(7) (a) Where in pursuance of an assessment or adjudication proceedings instituted,
\nwhether before, on or after the appointed day, <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nshall not be admissible as input tax credit under this Act.
\n35
\n(b) Where any return, furnished under the existing law, is revised after the appointed
\nday but within the time limit specified for such revision under the existing law and if,
\npursuant to such revision, any amount is found to be refundable or input tax credit is found
\nto be admissible to any taxable person, the same shall be refunded to him in cash under the
\nexisting law and the amount rejected, if any, shall not be admissible as input tax credit
\nunder this Act.
\n(9) Save as otherwise provided in this Chapter, the goods or services or both supplied
\non or after the appointed day in pursuance of a contract entered into prior to the appointed
\n40 day shall be liable to tax under the provisions of this Act.
\n(10) (a) Notwithstanding anything contained in section 12 of the Central Goods and
\nServices Tax Act, no tax shall be payable on goods und<\/p>\n
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\nsix months from the appointed day:
\nProvided that the said period of six months may, on sufficient cause being shown, be
\nextended by the Commissioner for a further period not exceeding two months:
\nProvided further that the tax shall be payable by the person returning the goods if
\nsuch goods are liable to tax under this Act and are returned after the period specified in this
\nsub-section:
\nProvided also that tax shall be payable by the person who has sent the goods on
\napproval basis if such goods are liable to tax under this Act, and are not returned within the
\nperiod specified in this sub-section.
\n(12) Where a supplier has made any sale of goods in respect of which tax was required
\nto be deducted at source under any existing law relating to sale of goods and has also issued
\nan invoice for the same before the appointed day, no deduction of tax at source under
\nsection 51 of the Central Goods and Services Tax Act, as made applicable to <\/p>\n
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\n(xvii) demands and recovery;
\n(xviii) liability to pay in certain cases;
\n25
\n30
\n35
\n40
\n40
\n13
\n5
\n10
\n15
\n20
\n20
\n25
\n30
\n(xix) advance ruling;
\n(xx) appeals and revision;
\n(xxi) presumption as to documents;
\n(xxii) offences and penalties;
\n(xxiii) job work;
\n(xxiv) electronic commerce;
\n(xxv) settlement of funds;
\n(xxvi) transitional provisions; and
\n(xxvii) miscellaneous provisions including the provisions relating to the
\nimposition of interest and penalty,
\nshall, mutatis mutandis, apply,-
\n(a) so far as may be, in relation to Union territory tax as they apply in relation
\nto central tax as if they were enacted under this Act;
\n(b) subject to the following modifications and alterations which the Central
\nGovernment considers neceassry and desirable to adapt those provisions to the
\ncircumstances, namely:\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(i) references to “this Act” shall be deemed to be references to “the
\nUnion Territory Goods and Services Tax Act, 2017”;
\n(ii) references to \u00e2\u00e2\u0080\u009a\u00ac\u00c5<\/p>\n
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\n40
\n45
\n(2) Without prejudice to the generality of the provisions of sub-section (1), the Central
\nGovernment may make rules for all or any of the matters which by this Act are required to
\nbe, or may be, prescribed or in respect of which provisions are to be or may be made by
\nrules.
\n(3) The power to make rules conferred by this section shall include the power to give
\nretrospective effect to the rules or any of them from a date not earlier than the date on which
\nthe provisions of this Act come into force.
\n(4) Any rules made under sub-section (1) may provide that a contravention thereof
\nshall be liable to a penalty not exceeding ten thousand rupees.
\n23. The Board may, by notification, make regulations consistent with this Act and the
\nrules made thereunder to carry out the purposes of this Act.
\nPower to make
\nrules.
\nGeneral power
\nto make
\nregulations.
\n14
\nLaying of rules,
\n24. Every rule made by the Central Government, every regulation made by the Board
\nregulation<\/p>\n
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\nthat rule or regulation or notification, as the case may be.
\n25. The Commissioner may, if he considers it necessary or expedient so to do for the
\npurpose of uniformity in the implementation of this Act, issue such orders, instructions or
\ndirections to the Union territory tax officers as he may deem fit, and thereupon all such
\nofficers and all other persons employed in the implementation of this Act shall observe and
\nfollow such orders, instructions or directions.
\n26. (1) If any difficulty arises in giving effect to any provision of this Act, the Central
\nGovernment may, on the recommendations of the Council, by a general or a special order
\npublished in the Official Gazette, make such provisions not inconsistent with the provisions
\nof this Act or the rules or regulations made thereunder, as may be necessary or expedient
\nfor the purpose of removing the said difficulty:
\nProvided that no such order shall be made after the expiry of a period of three years
\nfrom the date <\/p>\n
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\nthere is cascading of taxes due to “tax on tax”; and
\n(c) the credit of excise duty and service tax paid at the stage of manufacture
\nis not available to the traders while paying the State level sales tax or value added
\ntax, and vice-versa. Further, the credit of State taxes paid in one State cannot be
\navailed in other States. Hence, the prices of goods and services get artificially
\ninflated to the extent of this “tax on tax”.
\n3. In view of the above, it has become necessary to have a Central Legislation,
\nnamely, the Union Territory Goods and Services Tax Bill, 2017. The proposed
\nLegislation will confer power upon the Central Government for levying goods and
\nservices tax on the supply of goods or services or both which takes place within a
\nUnion territory without Legislature.
\n4. The proposed Legislation will simplify and harmonise the indirect tax regime
\nin the country. It is expected to reduce the cost of producti<\/p>\n
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\nCouncil (the Council);
\n(b) to empower the Central Government to grant exemptions, by notification
\nor by special order, on the recommendations of the Council;
\n(c) to provide for apportionment of tax and settlement of funds on account
\nof transfer of input tax credit between the Central Government, State Government
\nand Union territory;
\n(d) to provide for assistance by officers of Police, Railways, Customs, and
\nthose engaged in the collection of land revenue, including village officers, and
\n15
\nofficers of central tax and officers of the State tax to proper officers in the
\nimplementation of the proposed Legislation;
\n(e) to provide for recovery of tax, interest or penalty payable by a person to
\nthe Government which remains unpaid, by the proper officer of central tax;
\n(f) to establish an Authority for Advance Ruling in order to enable the
\ntaxpayer to seek a binding clarity on taxation matters from the department;
\n(g) to provide <\/p>\n
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\nClause 2 defines various terms and expressions used in the proposed Act.
\nClause 3 provides for appointment of Commissioners and other class of officers
\nas may be required for carrying out the purposes of the proposed Act.
\nClause 4 confers power on the Administrator to appoint officers of Union territory
\ntax below the rank of Assistant Commissioner of Union territory tax for the
\nadministration of the proposed Act.
\nClause 5 provides for conditions and exceptions for exercising the powers by the
\nUnion territory tax officers.
\nClause 6 provides for authorisation of Central tax officers, subject to certain
\nconditions as shall be notified by the Central Government on recommendations of the
\nCouncil, to be proper officers for the purposes of the proposed Act.
\nClause 7 provides for levy of Union territory tax on all intra-State supplies of
\ngoods or services or both except on the supply of alcoholic liquor for human
\nconsumption, on the value determined under section <\/p>\n
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\nif such services are supplied through it, on the recommendations of the Council.
\nClause 8 confers powers on the Central Government to exempt either absolutely
\nor conditionally goods or services or both of any specified description from the whole
\nor any part of the Union territory tax, on the recommendations of the Council. It also
\nconfers powers on the Central Government to exempt from payment of tax any goods
\nor services or both, by special order, on which tax is leviable on the recommendations
\nof the Council.
\nClause 9 provides for the manner and order in which input tax credit of integrated
\ntax and input tax credit of Union territory tax is to be utilised.
\nClause 10 provides for transfer of credit of Union territory tax to the integrated
\ntax account when Union territory tax credit has been used for payment of central tax.
\nClause 11 provides for officers of Police, Railways, Customs and other officers
\nengaged in collection of land revenue to assist officers invol<\/p>\n
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\nClause 19 provides for transitional provisions relating to job-work.
\nClause 20 provides for miscellaneous provisions for transition of existing tax
\npayers in various situations.
\nClause 21 provides for application of specific provisions of the Central Goods
\nand Services Tax Act to the proposed Act.
\nClause 22 confers powers on the Central Government to make rules for carrying
\nout the provisions of the proposed Act on recommendations of the Council.
\nClause 23 confers powers on the Board to make regulations for carrying out the
\nprovisions of the proposed Act.
\nClause 24 provides for laying of rules, regulations and notifications made by the
\nCentral Government before each House of the Parliament.
\nClause 25 confers powers to the Commissioner to issue orders, instructions or
\ndirections to the Union territory tax officers for uniform implementation of the provisions
\nof the proposed Act.
\nClause 26 confers powers on the Central Government to make such provisions
\nnot inconsistent<\/p>\n
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\nexpenditure under this Bill.
\n5. The total financial implications in terms of recurring and non-recurring expen-
\nditure involved in carrying out the various functions under the Bill would be borne by
\nthe Central Government. Most of the existing officers and staff of the Central Board of
\nExcise and Customs and Union territories would be used for carrying out the various
\nfunctions under the Bill. However, it is not possible to estimate the exact recurring and
\nnon-recurring expenditure from the Consolidated Fund of India at this stage.
\n19
\nMEMORANDUM REGARDING DELEGATED LEGISLATION
\nClause 22 of the Union territories Goods and Services Tax Bill, 2017 seeks to empower
\nthe Government to make rules, inter-alia, in the following\u00e2\u00e2\u0080\u009a\u00ac\u00e2\u00e2\u0082\u00ac\u00a2
\n(a) collection of taxes under section 7; (b) manner and time in which input tax
\ncredit will be transferred under section 10; (c) manner in which tax wrongfully collecte<\/p>\n
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