MODEL GST LAW
GST
Dated:- 14-6-2016
GOODS AND SERVICES TAX ACT, 2016
\nTHE INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act)
\nGST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016
\n
\nDownload PDF
\n GOODS AND SERVICES TAX ACT, 2016
\nTHE INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act)
\nGST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016
\n=============
\nDocument 1
\n\u00e0\u00a4\u00b8\u00e0\u00a4\u00a4\u00e0\u00a5\u008d\u00e0\u00a4\u00af\u00e0\u00a4\u00ae\u00e0\u00a5\u2021\u00e0\u00a4\u00b5 \u00e0\u00a4\u0153\u00e0\u00a4\u00af\u00e0\u00a4\u00a4\u00e0\u00a5\u2021
\nMODEL GST LAW
\nPage 1 of 190
\nEmpowered Committee of State Finance Ministers
\nJune, 2016
\nGOODS AND SERVICES TAX ACT, 2016
\nCHAPTER – I
\nPRELIMINARY
\n1.
\nShort title, extent and commencement
\n2.
\nDefinitions
\n3.
\nMeaning and scope of supply
\nCHAPTER- II
\nADMINISTRATION
\n4.
\nClasses of officers under the Central Goods and Services Tax Act
\n4.
\nClasses of officers under the State Goods and Services Tax Act
\n5.
\n6.
\nAppointment of officers under the Central Goods<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n on = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n very of tax = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n sion of time taken for copy = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n c. not to be invalid on certain grounds = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n earlier law = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n assigned to it in section 3 of the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n who cultivates land personally, for the purpose of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ation, society, or any such body (for a subscription or any = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n courier agency service; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n and\/or services, whether by = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he Cost and = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n outside India; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n mmatical variations and cognate expressions, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n upply in the course or furtherance of business; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ate Government with = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h a recipient of a supply is = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n dia; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n o whom = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s made thereunder; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n cation service” means service of any description (including = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nincorporated or otherwise legally constituted; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n supply of services. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the Central Goods and Services Tax Act = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n his Act and collected in such manner as may be prescribed. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n may be = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , liable to pay tax under sub-section (3) of section 7, receiving services of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rovided, come into force on the date of its issue by the Central or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n recipient. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ce, the time of supply shall be = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n vice; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n a) in case the taxable service has been provided before the change in effective rate of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hange in the effective rate of tax. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n that may be allowed after the supply has been effected: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of inputs held in stock and inputs contained in semi- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n x as is attributable to the taxable supplies including = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n and machinery; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e exempt absolutely under section 10, he shall pay an = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n principal\u201d shall be entitled to take credit of input tax on inputs even if = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nt of credit are located in different = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f the turnover in a State of such = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rson, other than an Input Service Distributor, is registered under = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n The registration or the Unique Identity Number, shall be granted or, as the case = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ys by a further period not exceeding ninety days. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n an application filed, in the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n whether or not such tax and other dues are determined before or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n a notice to show cause and without giving the person a = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n . Credit and debit notes = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 25. Furnishing details of outward supplies = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n wing the end of the financial year to which such details pertain, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rescribed, and shall pay the tax and interest, if any, in case there is a short payment of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n any supplies of goods and\/or services have been = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d that a registered taxable person paying tax under the provisions of section 8 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the provisions of section 16, be finally = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n n (8) shall be refunded to the recipient by crediting the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n cated = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h such contravention takes place and such supplier shall be liable to = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n urn required under = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e maintained in the manner as may be = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n his Act shall be recorded and maintained = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ay to the credit of the appropriate Government the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n relevant date in such = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n proper officer may, in = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s due = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n out = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ar in which such claim for refund arises; and = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n and separate account and other relevant records in relation = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Every registered taxable person required to keep and maintain books of account = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s engaged in the supply of such goods as may be notified in = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the supply of any goods and\/or services or in providing any information or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ce with the provisions of this section and paid = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s Act, require the operator to = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ch rate or on such = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n epancies noticed, if = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tax liability of such taxable person to the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n person shall be informed, by way of a notice, sufficiently in advance, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f the opinion that = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tax not paid or short paid or erroneously refunded = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nt. The proper officer, on receipt of such = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n serve notice = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ch amount which falls short of the amount = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n iod of three years, deeming as if = = = = = = = =<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n21.
\nCancellation of registration
\n22.
\nRevocation of cancellation of registration
\nCHAPTER
\n–
\nVII
\nTAX INVOICE, CREDIT AND DEBIT NOTES
\n23.
\nTax invoice
\n23 A. Amount of tax to be indicated in tax invoice and other documents
\n24.
\nCredit and debit notes
\nCHAPTER- VIII
\nRETURNS
\n25.
\nFurnishing details of outward supplies
\n26. Furnishing details of inward supplies
\n27.
\nReturns
\n27A.
\nFirst Return
\n28.
\nClaim of input tax credit and provisional acceptance thereof
\n29.
\nMatching, reversal and re-claim of input tax credit
\n29A. Matching, reversal and re-claim of reduction in output tax liability
\n30.
\nAnnual return
\n31.
\nFinal return
\n32.
\nNotice to return defaulters
\n33.
\nLevy of late fee
\n34.
\nTax Return Preparers
\nCHAPTER- IX
\nPAYMENT OF TAX
\n35.
\nPayment of tax, interest, penalty, and other amounts
\n36. Interest on delayed payment of tax
\n37.
\nTax deduction at source
\nCHAPTER- IXA
\nTRANSFER OF INPUT TAX CREDIT
\n37A. Transfer of input tax credit
\n38.
\nRefund of tax
\n39.
\nInterest<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n55.
\nPayment of tax and other amount in installments
\n56.
\n57.
\n58.
\nTransfer of property to be void in certain cases
\nTax to be first charge on property
\nProvisional attachment to protect revenue in certain cases
\n59. Continuation of certain recovery proceedings
\nCHAPTER- XV
\nINSPECTION, SEARCH, SEIZURE AND ARREST
\n60.
\nPower of inspection, search and seizure
\n61.
\nInspection of goods in movement
\n62.
\nPower to arrest
\n63.
\n64.
\n65.
\nPower to summon persons to give evidence and produce documents
\nAccess to business premises
\nOfficers required assisting CGST\/SGST Officers
\nCHAPTER- XVI
\nOFFENCES AND PENALTIES
\n66.
\nOffences and penalties
\n67.
\nGeneral penalty
\n68.
\nGeneral disciplines related to penalty
\n69.
\nDetention of goods and conveyances, and levy of penalty
\n70.
\nConfiscation of goods and levy of penalty
\n71.
\nConfiscation of conveyances
\n72. Confiscation or penalty not to interfere with other punishments
\nCHAPTER- XVII
\nPROSECUTION AND COMPOUNDING OF OFFENCES
\n73.\n<\/p>\n
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\n92.
\nAppeal not to be filed in certain cases
\n93.
\nNon appealable decisions and orders
\nPage 6 of 190
\nCHAPTER- XIX
\nADVANCE RULING
\n94.
\nDefinitions
\n95.
\nAuthority for Advance Ruling
\n96.
\nAppellate Authority for Advance Ruling
\n97.
\nApplication for advance ruling
\n98.
\nProcedure on receipt of application
\n99.
\nAppeal to the Appellate Authority
\n100.
\nOrders of Appellate Authority
\n101.
\nRectification of advance ruling
\n102.
\nApplicability of advance ruling
\n103.
\nAdvance ruling to be void in certain circumstances
\n104.
\nPowers of the Authority and Appellate Authority
\n105.
\nProcedure of the Authority and Appellate Authority
\n106.
\n107.
\n108.
\n109.
\nCHAPTER- XX
\nSETTLEMENT OF CASES
\nPage 7 of 190
\nCHAPTER- XXI
\nPRESUMPTION AS TO DOCUMENTS
\nPresumption as to documents in certain cases
\nAdmissibility of micro films, facsimile copies of documents and computer printouts
\nas documents and as evidence
\nCHAPTER- XXII
\nLIABILITY TO PAY IN CERTAIN CASES
\nLiability<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nRectification of mistakes or errors apparent from record
\n129.
\n130.
\nBar of jurisdiction of civil courts
\n131.
\nLevy of fees
\n132. Power of Central (or State) Government to make rules
\n132A. General power to make Regulations
\n133. Delegation of powers
\n134. Instructions to GST Officers
\nPage 8 of 190
\nPage 9 of 190
\n135.
\nRemoval of difficulties
\n136.
\nService of Notice in certain circumstances
\n137.
\nRounding off of tax etc
\n138.
\n139.
\nEffect of amendments, etc., of rules, notifications or orders
\nPublication of rules and notifications and laying of rules before Parliament \/ State
\nLegislature
\nCHAPTER- XXIV
\nREPEAL AND SAVING
\n140.
\nRepeal and saving
\nCHAPTER- XXV
\nTRANSITIONAL PROVISIONS
\n141.
\nGeneral provisions
\n142.
\nMigration of existing taxpayers to GST
\n143. Amount of CENVAT credit carried forward in a return to be allowed as input
\ntax credit
\n144. Unavailed cenvat credit on capital goods, not carried forward in a return, to be
\nallo<\/p>\n
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\n155. Claim of cenvat credit to be disposed of under the earlier law
\n156. Finalization of proceedings relating to output duty liability
\n157. Treatment of the amount recovered or refunded in pursuance of assessment
\nor adjudication proceedings
\n158. Treatment of the amount recovered or refunded pursuant to revision of
\nreturns
\n159. Treatment of long term construction \/ works contracts
\n160. Progressive or periodic supply of goods or services
\n161. Treatment of retention payments
\n162. Credit distribution of service tax by ISD
\n162A.Tax paid on goods lying with agents to be allowed as credit
\n162B. Tax paid on capital goods lying with agents to be allowed as credit
\n162C. Treatment of branch transfers
\n162D. Goods sent on approval basis returned on or after the appointed day
\n162 E. Deduction of tax source
\nSCHEDULES
\nI
\nMatters to be treated as supply without consideration
\nII
\nMatters to be treated as supply of goods or services
\nIII
\nLiability to be registered
\nIV
\nPag<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nTransfer of Property Act, 1882;
\n(2)
\n“address of delivery” means the address of the recipient of goods and\/or
\nservices indicated on the tax invoice issued by a taxable person for delivery of such
\ngoods and\/or services;
\n(3)
\n“address on record” means the address of the recipient as available in the
\nrecords of the supplier;
\n(4)
\n“adjudicating authority” means any authority competent to pass any order or
\ndecision under this Act, but does not include the Board, the First Appellate Authority and
\nthe Appellate Tribunal;
\n(5) “agent” means a person who carries on the business of supply or receipt of
\ngoods and\/or services on behalf of another, whether disclosed or not and includes a
\nfactor, broker, commission agent, arhatia, del credere agent, intermediary or an
\nauctioneer or any other mercantile agent, by whatever name called, and whether of the
\nsame description as hereinbefore mentioned or not;
\n(6) “aggregate turnover” means the aggregate valu<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nagriculture;
\n(9) “Appellate Tribunal” means the National Goods and Services Tax Appellate
\nTribunal constituted under section 81;
\n(10) “appointed day” means the date on which section 1 of this Act comes into
\neffect;
\n(11) “appropriate Government” means the Central Government in case of the IGST
\nand the CGST, and the State Government in case of the SGST;
\n(12) “assessment” means determination of tax liability under this Act and includes
\nself-assessment, re-assessment, provisional assessment, summary assessment and
\nbest judgement assessment;
\n(13) “associated enterprise” shall have the meaning assigned to it in section 92A of
\nthe Income Tax Act, 1961;
\n(14) “audit” means detailed examination of records, returns and other documents
\nmaintained or furnished by the taxable person under this Act or rules made thereunder
\nor under any other law for the time being in force to verify, inter alia, the correctness of
\nturnover declared, t<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nother consideration) of the facilities or benefits to its members, as the case may be;
\n(f) admission, for a consideration, of persons to any premises; and
\n(g) services supplied by a person as the holder of an office which has been accepted by
\nhim in the course or furtherance of his trade, profession or vocation;
\n(18) \u201cbusiness vertical\u201d shall have the meaning assigned to a \u2018business segment' in
\nAccounting Standard 17 issued by the Institute of Chartered Accountants of India;
\nPage 14 of 190
\n(19)
\n“capital assets” shall have the meaning as assigned to it in the Income Tax Act,
\n1961 (43 of 1961) but the said expression shall not include jewellery held for personal
\nuse or property not connected with the business;
\n(20) “capital goods\u201d means:
\n(A) the following goods, namely:-
\n(i) all goods falling within Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading
\n6805, grinding wheels and the like, <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(C) motor vehicle designed to carry passengers including their chassis, registered in the
\nname of the supplier of service, when used for supplying the service of-
\n(i) transportation of passengers; or
\n(ii) renting of such motor vehicle; or
\n(iii) imparting motor driving skills;
\n(D) Components, spares and accessories of motor vehicles which are capital goods for
\nthe taxable person.
\n(21) “casual taxable person” means a person who occasionally undertakes
\ntransactions involving supply of goods and\/or services in the course or furtherance of
\nPage 15 of 190
\nbusiness whether as principal, agent or in any other capacity, in a taxable territory
\nwhere he has no fixed place of business;
\n(22)
\n2016;
\n“CGST” means the tax levied under the Central Goods and Services Tax Act,
\n(23) “chartered accountant\u201d means a chartered accountant within the meaning of
\nthe Chartered Accountants Act, 1949 (38 of 1949);
\n(24) “commissioner” means the Commissioner of Central G<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthe said person or by any other person;
\n(b) the monetary value of any act or forbearance, whether or not voluntary, in respect
\nof, in response to, or for the inducement of, the supply of goods and\/or services,
\nwhether by the said person or by any other person:
\nProvided that a deposit, whether refundable or not, given in respect of the supply of
\ngoods and\/or services shall not be considered as payment made for the supply unless
\nthe supplier applies the deposit as consideration for the supply;
\n(29) “continuous journey” means a journey for which a single or more than one
\nticket or invoice is issued at the same time, either by a single supplier of service or
\nthrough an agent acting on behalf of more than one supplier of service, and which
\ninvolves no stop over between any of the legs of the journey for which one or more
\nseparate tickets or invoices are issued;
\nExplanation. For the purposes of this clause, 'stopover' means a place where a
\npassenger<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nWorks Accountants Act, 1959 (23 of 1959);
\n(34)
\n“Council” means the Goods and Services Tax Council established under Article
\n279A of the Constitution;
\n(35) “credit note” means a document issued by a taxable person as referred to in
\nsub-section (1) of section 24;
\n(36) “debit note” means a document issued by a taxable person as referred to in
\nsub-section (2) of section 24;
\n(37) “deemed exports”, as notified by the Central Government\/State Government on
\nthe recommendation of the Council, refer to those transactions in which the goods
\nsupplied do not leave India, and payment for such supplies is received either in Indian
\nRupees or in convertible foreign exchange;
\n(38) “document” includes written or printed record of any sort and electronic record
\nas defined in the Information Technology Act, 2000 [21 of 2000];
\n(39) “earlier law” means any of the following laws, that is to say,
\n(a) . . .
\n(b) …
\n(c) . . .
\nas amended from time to time and includes enactments whi<\/p>\n
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\n(44) the supply of any service shall be treated as “export of service” when
\n(a)
\nthe supplier of service is located in India,
\n(b)
\nthe recipient of service is located outside India,
\n(c)
\nthe place of supply of service is outside India,
\n(d) the payment for such service has been received by the supplier of service in
\nconvertible foreign exchange, and
\n(e) the supplier of service and recipient of service are not merely establishments of a
\ndistinct person;
\nExplanation. For the purposes of clause (e), an establishment of a person in India and
\nany of his other establishment outside India shall be treated as establishments of distinct
\npersons.
\n(45) “First Appellate Authority” means an authority referred to in section 79;
\n(46)
\n\u201cfixed establishment\u201d means a place (other than the place of business) which is
\ncharacterised by a sufficient degree of permanence and suitable structure in terms of
\nhuman and technical resources to supply services, or to receive<\/p>\n
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\nmeans bringing into India from a place outside India;
\n(52) the supply of any service shall be treated as an “import of service” if,
\n(a) the supplier of service is located outside India,
\n(b) the recipient of service is located in India,
\n(c) the place of supply of service is in India, and
\n(d) the supplier of service and the recipient of service are not merely establishments of a
\ndistinct person;
\nPage 18 of 190
\nExplanation 1.- An establishment of a person in India and any of his other establishment
\noutside India shall be treated as establishments of distinct persons.
\nExplanation 2.- A person carrying on a business through a branch or agency or
\nrepresentational office in any territory shall be treated as having an establishment in
\nthat territory.
\n(53)
\n“India” means,-
\n(a) the territory of the Union as referred to in clauses (2) and (3) of Article 1 of the
\nConstitution;
\n(b) its territorial waters, continental shelf, exclusive eco<\/p>\n
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\n(56) “Input Service Distributor” means an office of the supplier of goods and \/ or
\nservices which receives tax invoices issued under section 23 towards receipt of input
\nservices and issues tax invoice or such other document as prescribed for the purposes of
\ndistributing the credit of CGST (SGST in State Acts) and \/ or IGST paid on the said
\nservices to a supplier of taxable goods and \/ or services having same PAN as that of the
\noffice referred to above;
\nExplanation. For the purposes of distributing the credit of CGST (SGST in State Acts)
\nand\/or IGST, Input Service Distributor shall be deemed to be a supplier of services.
\n(57) “input tax” in relation to a taxable person, means the {IGST and CGST}\/{IGST
\nand SGST} charged on any supply of goods and\/or services to him which are used, or
\nare intended to be used, in the course or furtherance of his business and includes the tax
\npayable under sub-section (3) of section 7;
\n(58) “input<\/p>\n
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\nthe control or management of a municipal or local fund;
\n(d)
\na Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
\na Regional Council or a District Council constituted under the Sixth Schedule to
\nthe Constitution;
\n(e)
\n(f)
\na Development Board constituted under Article 371 of the Constitution; or
\n(g)
\n(64)
\na Regional Council constituted under Article 371A of the Constitution;
\n“location of recipient of service” means:
\n(i) where a supply is received at a place of business for which registration has been
\nobtained, the location of such place of business;
\n(ii) where a supply is received at a place other than the place of business for which
\nregistration has been obtained, that is to say, a fixed establishment elsewhere, the
\nlocation of such fixed establishment;
\n(iii) where a supply is received at more than one establishment, whether the place of
\nbusiness or fixed establishment, the location of the establishment most directly
\nconcerned wi<\/p>\n
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\nrequired to pay in order to obtain the goods and\/or services of like kind and quality at or
\nPage 20 of 190
\nabout the same time and at the same commercial level where the recipient and the
\nsupplier are not related;
\n(68) “money” means Indian legal tender or any foreign currency, cheque, promissory
\nnote, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order,
\npostal or electronic remittance or any such similar instrument when used as
\nconsideration to settle an obligation or exchange with Indian legal tender of another
\ndenomination but shall not include any currency that is held for its numismatic value;
\n(69) \u201cnon-resident taxable person” means a taxable person who occasionally
\nundertakes transactions involving supply of goods and\/or services whether as principal
\nor agent or in any other capacity but who has no fixed place of business in India;
\n(70) “non-taxable territory” means the territory which is outside the <\/p>\n
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\n(g) any corporation established by or under any Central, State or Provincial Act or a
\nGovernment company as defined in section 2(45) of the Companies Act, 2013 (18 of
\n2013);
\n(h) any body corporate incorporated by or under the laws of a country outside India;
\n(i) a co-operative society registered under any law relating to cooperative societies;
\n(j) a local authority;
\n(k) government;
\n(1) society as defined under the Societies Registration Act, 1860 (21 of 1860);
\n(m) trust; and
\n(n) every artificial juridical person, not falling within any of the preceding sub-clauses;
\n(75) “place of business” includes
\n(a) a place from where the business is ordinarily carried on, and includes a warehouse, a
\ngodown or any other place where a taxable person stores his goods, provides or receives
\ngoods and\/or services; or
\n(b) a place where a taxable person maintains his books of account; or
\nPage 21 of 190
\n(c) a place where a taxable person is engaged in business through an agent, by
\nwha<\/p>\n
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\nthe goods are delivered or made available, or to whom possession or use of the goods is
\ngiven or made available, and
\n(c) where no consideration is payable for the supply of a service, the person to whom
\nthe service is rendered,
\nand any reference to a person to whom a supply is made shall be construed as a
\nreference to the recipient of the supply;
\nExplanation. The expression “recipient” shall also include an agent acting as such on
\nbehalf of the recipient in relation to the goods and\/or services supplied.
\n(81)
\n“regulations” means the regulations made by the Board\/Commissioner under
\nany provision of the Act on the recommendation of the Council;
\n(82)
\npersons shall be deemed to be \u201crelated persons” if only –
\n(a)
\nthey are officers or directors of one another's businesses;
\n(c)
\nthey are employer and employee;
\n(b) they are legally recognized partners in business;
\n(d) any person directly or indirectly owns, controls or holds five per cent or more of
\nthe outstand<\/p>\n
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\n(85) “reverse charge\u201d, means the liability to pay tax by the person receiving goods
\nand\/or services instead of the person supplying the goods and \/ or services in respect
\nof such categories of supplies as the Central or a State Government may, on the
\nrecommendation of the Council, by notification, specify;
\n(86) “rules” means the rules made by the Central\/State Government under any
\nprovision of the Act on the recommendation of the Council;
\n(87) “schedule” means a schedule appended to this Act;
\n(88) “services” means anything other than goods;
\nExplanation: Services include intangible property and actionable claim but does not
\ninclude money.
\n(89) “SGST” means the tax levied under the State Goods and Services Tax Act;
\n(90) “Special Economic Zone” shall have the meaning assigned to it in clause (za) of
\nsection 2 of the Special Economic Zones Act, 2005 [28 of 2005];
\n(91) “supplier\u201d in relation to any goods and\/or services shall mean the person supp<\/p>\n
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\nelectronic mail, voice mail, data services, audio text services, video text services, radio
\npaging and cellular mobile telephone services) which is made available to users by
\nmeans of any transmission or reception of signs, signals, writing, images and sounds or
\nintelligence of any nature, by wire, radio, visual or other electro-magnetic means;
\n(101) “time of supply of goods\u201d shall have the meaning as assigned to it in section
\n12;
\nPage 23 of 190
\n(102) “time of supply of services” shall have the meaning as assigned to it in section
\n13;
\n(103) “to cultivate personally” means to carry on any agricultural operation on one's
\nown account-
\n(a)
\n(b)
\nby one's own labour, or
\nby the labour of one's family, or
\n(c)
\nby servants on wages payable in cash or kind (but not in crop share) or by hired
\nlabour under one's personal supervision or the personal supervision of any member of
\none's family;
\nExplanation 1. – A widow<\/p>\n
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\n(106) “valid return\u201d shall have the meaning assigned to it under sub-section (3) of
\nsection 27.
\n(107) “works contract” means an agreement for carrying out for cash, deferred
\npayment or other valuable consideration, building, construction, fabrication, erection,
\ninstallation, fitting out, improvement, modification, repair, renovation or commissioning
\nof any moveable or immovable property;
\n(108) “year” means the financial year; and
\n(109) “zero-rated supply\u201d means a supply of any goods and\/or services on which no
\ntax is payable but credit of the input tax related to that supply is admissible;
\nExplanation.- Exports shall be treated as zero-rated supply.
\n3.
\nMeaning and scope of supply
\n(1) Supply includes
\n(a) all forms of supply of goods and\/or services such as sale, transfer, barter, exchange,
\nlicense, rental, lease or disposal made or agreed to be made for a consideration by a
\nperson in the course or furtherance o<\/p>\n
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\n(4)
\nNotwithstanding anything contained in sub-section (1), the supply of any branded
\nservice by an aggregator, as defined in section 43B, under a brand name or trade name
\nowned by him shall be deemed to be a supply of the said service by the said aggregator.
\nCHAPTER II
\nPage 25 of 190
\n4.
\n(1)
\nADMINISTRATION
\nClasses of officers under the Central Goods and Services Tax Act
\nThere shall be the following classes of officers under the Central Goods and
\nServices Tax Act, namely;
\n(a)
\nPrincipal Chief Commissioners of CGST or
\nPrincipal Directors General of CGST,
\n(b)
\nChief Commissioners of CGST or
\nDirectors General of CGST,
\n(c)
\nPrincipal Commissioners of CGST or
\nPrincipal Additional Directors General of CGST,
\n(d)
\nCommissioners of CGST or
\nAdditional Directors General of CGST,
\n(e)
\nFirst Appellate Authority,
\n(f) Additional Commissioners of CGST or
\nAdditional Directors of CGST,
\n(g)
\nJoint Commissioners of CGST or
\nJoint Directors of CGST,
\n(h)
\nDeputy C<\/p>\n
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\n(1) The Board may appoint such persons as it may think fit to be officers under the
\nCentral Goods and Services Tax Act.
\n(2) Without prejudice to the provisions of sub-section (1), the Board may authorize a
\nPrincipal Chief Commissioner\/Chief Commissioner of Central Goods and Services Tax or a
\nPrincipal Commissioner\/Commissioner of Central Goods and Services Tax or an
\nAdditional\/Joint or Deputy\/Assistant Commissioner of Central Goods and Service Tax to
\nappoint officers of Central Goods and Services Tax below the rank of Assistant
\nCommissioner of Central Goods and Services Tax.
\n(Note: State laws may have similar provision)
\n6.
\n(1)
\nPowers of officers under the Central Goods and Services Tax Act
\nSubject to such conditions and limitations as the Board may impose, an officer of
\nthe Central Goods and Services Tax may exercise the powers and discharge the duties
\nconferred or imposed on him under this Act.
\n(2) An officer of Central Goods and <\/p>\n
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\n(2) The CGST\/SGST shall be paid by every taxable person in accordance with the
\nprovisions of this Act.
\n(3) Notwithstanding anything contained in sub-section (2), the Central or a State
\nGovernment may, on the recommendation of the Council, by notification, specify
\ncategories of supply of goods and\/or services the tax on which is payable on reverse
\ncharge basis and the tax thereon shall be paid by the person receiving such goods
\nand\/or services and all the provisions of this Act shall apply to such person as if he is the
\nperson liable for paying the tax in relation to such goods and\/or services.
\n8.
\n(1)
\nComposition Levy
\nNotwithstanding anything to the contrary contained in the Act but subject to sub-
\nsection (3) of section 7, on the recommendation of the Council, the proper officer of the
\nCentral or a State Government may, subject to such conditions and restrictions as may
\nbe prescribed, permit a registered taxable <\/p>\n
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\npayable by him under other provisions of this Act, be liable to a penalty equivalent to the
\namount of tax payable as aforesaid:
\nProvided that no penalty shall be imposed without giving a notice to show cause and
\nwithout affording a reasonable opportunity of being heard to the person proceeded
\nagainst.
\n9.
\nTaxable person
\nPage 28 of 190
\n(1) Taxable Person means a person who carries on any business at any place in India
\n\/State of and who is registered or required to be registered under Schedule III of
\nthis Act:
\nProvided that an agriculturist shall not be considered as a taxable person.
\nProvided further that a person who is required to be registered under paragraph 1 of
\nSchedule III of this Act shall not be considered as a taxable person until his aggregate
\nturnover in a financial year exceeds [Rs ten lakh]
\nProvided further that a person who is required to be registered under paragraph 1 of
\nSchedule III of this Act shall not be considered as a taxable person until hi<\/p>\n
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\nvalue not exceeding
\nI rupees in a year for personal use, other than for use in the
\ncourse or furtherance of his business.
\n10.
\nPower to grant exemption from tax
\n(1) If the Central or a State Government is satisfied that it is necessary in the public
\ninterest so to do, it may, on the recommendation of the Council, by notification, exempt
\ngenerally either absolutely or subject to such conditions as may be specified in the
\nnotification, goods and\/or services of any specified description from the whole or any
\npart of the tax leviable thereon.
\nExplanation.- Where an exemption under sub-section (1) in respect of any goods and\/or
\nservices from the whole of the tax leviable thereon has been granted absolutely, the
\ntaxable person providing such goods and\/or services shall not pay the tax on such goods
\nand\/or services.
\n(2) If the Central or a State Government is satisfied that it is necessary in the publi<\/p>\n
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\na State Government for publication in the Official Gazette; and
\n(b) be made available on the official website of the department of the Central or a State
\nGovernment.
\n11.
\n(1)
\nRemission of tax on supplies found deficient in quantity
\nThe Central or a State Government may, by rules made under this sub-section,
\nprovide for remission of tax on such supplies which are found to be deficient in quantity
\ndue to any natural causes.
\n(2)
\nAny rules made under sub-section (1) may, having regard to the nature of the
\nsupply, fix the limit or limits of percentage beyond which no such remission shall be
\nallowed.
\nCHAPTER IV
\nPage 30 of 190
\nTIME AND VALUE OF SUPPLY
\n12. Time of supply of goods
\n(1) The liability to pay CGST \/ SGST on the goods shall arise at the time of supply as
\ndetermined in terms of the provisions of this section.
\n(2) The time of supply of goods shall be the earliest of the following dates, namely,-
\n(a<\/p>\n
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\nExplanation 3.- For the purposes of clauses (b) and (c) of sub-section (2), the supply
\nshall be deemed to have been made to the extent it is covered by the invoice or, as the
\ncase may be, the payment.
\nExplanation 4.- For the purpose of clause (c) of sub-section (2), “the date on which the
\nsupplier receives the payment” shall be the date on which the payment is entered in his
\nbooks of accounts or the date on which the payment is credited to his bank account,
\nwhichever is earlier.
\n(3) In case of continuous supply of goods, where successive statements of accounts or
\nsuccessive payments are involved, the time of supply shall be the date of expiry of the
\nperiod to which such successive statements of accounts or successive payments relate.
\nIf there are no successive statements of account, the date of issue of the invoice (or any
\nother document) or the date of receipt of payment, whichever is earlier, shall be the
\ntime of supply.
\n(4) For the purposes of sub section (3<\/p>\n
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\nat the time when it becomes known that the supply has taken place or six months from
\nthe date of removal, whichever is earlier.
\n(7) In case it is not possible to determine the time of supply under the provisions of sub-
\nsection (2), (3), (5) or (6), the time of supply shall
\n(a) in a case where a periodical return has to be filed, be the date on which such return
\nis to be filed, or
\n(b) in any other case, be the date on which the CGST\/SGST is paid.
\n13.
\nTime of supply of services
\n(1) The liability to pay CGST\/SGST on services shall arise at the time of supply, as
\ndetermined in terms of the provisions of this section.
\n(2) The time of supply of services shall be:-
\n(a) the date of issue of invoice or the date of receipt of payment, whichever is earlier, if
\nthe invoice is issued within the prescribed period; or
\n(b) the date of completion of the provision of service or the date of receipt of payment,
\nwhichever is earlier, if the invoice is not is<\/p>\n
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\n(b) where the due date of payment is not ascertainable from the contract, each such
\ntime when the supplier of service receives the payment, or issues an invoice, whichever
\nis earlier;
\nPage 32 of 190
\n(c) where the payment is linked to the completion of an event, the time of completion of
\nthat event;
\n(4) For the purposes of sub section (3) above, the Central or a State Government may
\non the recommendation of the Council, specify, by notification, the supply of services
\nthat shall be treated as continuous supply of services;
\n(5) 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 earliest of the following dates, namely-
\n(a) the date of receipt of services, or
\n(b) the date on which the payment is made, or
\n(c) the date of receipt of invoice, or
\n(d) the date of debit in the books of accounts.
\nExplanation. For the purpose of clause (b) of sub-section (5), “the date on which the
\npayment is made<\/p>\n
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\ntax
\n–
\n(i) where the invoice for the same has been issued and the payment is also received
\nafter the change in effective rate of tax, the time of supply shall be the date of receipt of
\npayment or the date of issue of invoice, whichever is earlier; or
\n(ii) where the invoice has been issued prior to change in effective rate of tax but the
\npayment is received after the change in effective rate of tax, the time of supply shall be
\nthe date of issue of invoice; or
\n(iii) where the payment is received before the change in effective rate of tax, but the
\ninvoice for the same has been issued after the change in effective rate of tax, the time of
\nsupply shall be the date of receipt of payment;
\n(b) in case the taxable service has been provided after the change in effective rate of tax
\n(i)
\nwhere the payment is received after the change in effective rate of tax but the
\ninvoice has been issued prior t<\/p>\n
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\n15.
\n(1)
\nValue of taxable supply
\nThe value of a supply of goods and\/or services shall be the transaction value, that
\nis the price actually paid or payable for the said supply of goods and\/or services where
\nthe supplier and the recipient of the supply are not related and the price is the sole
\nconsideration for the supply.
\n(2) The transaction value under sub-section(1) shall include:
\n(a) any amount that the supplier is liable to pay in relation to such supply but which has
\nbeen incurred by the recipient of the supply and not included in the price actually paid or
\npayable for the goods and\/or services;
\n(b)
\nthe value, apportioned as appropriate, of such goods and\/or services as are
\nsupplied directly or indirectly by the recipient of the supply free of charge or at reduced
\ncost for use in connection with the supply of goods and\/or services being valued, to the
\nextent that such value has not been included in the price actually paid or payabl<\/p>\n
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\nPage 34 of 190
\nProvided that such post-supply discount which is established as per the
\nagreement and is known at or before the time of supply and specifically linked to
\nrelevant invoices shall not be included in the transaction value.
\n(3) The transaction value under sub-section (1) shall not include any discount
\nallowed before or at the time of supply provided such discount is allowed in the course of
\nnormal trade practice and has been duly recorded in the invoice issued in respect of the
\nsupply.
\n(4) The value of the supply of goods and\/or services in the following situations which
\ncannot be valued under sub-section (1), shall be determined in such manner as may be
\nprescribed in the rules.
\nthe consideration, whether paid or payable, is not money, wholly or partly;
\n(i)
\n(ii)
\nthe supplier and the recipient of the supply are related;
\n(iii)
\nthere is reason to doubt the truth or accuracy of the transaction value declar<\/p>\n
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\nfinished or finished goods held in stock on the day immediately preceding the date from
\nwhich he becomes liable to pay tax under the provisions of this Act.
\n(2A) A person, who takes registration under sub-section (3) of section 19, shall, subject
\nto such conditions and restrictions as may be prescribed, be entitled to take credit of
\ninput tax in respect of inputs held in stock and inputs contained in semi-finished or
\nfinished goods held in stock on the day immediately preceding the date of registration.
\n(3) Where any registered taxable person ceases to pay tax under section 8, he shall,
\nsubject to such conditions and restrictions as may be prescribed, be entitled to take
\ncredit of input tax in respect of inputs held in stock and inputs contained in semi-finished
\nor finished goods held in stock on the day immediately preceding the date from which he
\nbecomes liable to pay tax under section 7.
\n(3A) A taxable person shall no<\/p>\n
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\nzero-rated supplies.
\n(7) The Central or a State Government may, by notification issued in this behalf,
\nprescribe the manner in which the credit referred to in sub-sections (5) and (6) above
\nmay be attributed.
\n(8) Where there is a change in the constitution of a registered taxable person on
\naccount of sale, merger, demerger, amalgamation, lease or transfer of the business with
\nthe specific provision for transfer of liabilities, the said registered taxable person shall be
\nPage 36 of 190
\nallowed to transfer the input tax credit that remains unutilized in its books of accounts to
\nsuch sold, merged, demerged, amalgamated, leased or transferred business in the
\nmanner prescribed.
\n(9) Notwithstanding anything contained in sub-section (1), (2), (2A) or (3) input tax
\ncredit shall not be available in respect of the following:
\n(a) motor vehicles, except when they are supplied in the usual course of business or are
\nused for provi<\/p>\n
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\n(e) goods and\/or services on which tax has been paid under section 8; and
\n(f) goods and\/or services used for private or personal consumption, to the extent they
\nare so consumed.
\n(10) Where the registered taxable person has claimed depreciation on the tax
\ncomponent of the cost of capital goods under the provisions of the Income Tax Act,
\n1961, the input tax credit shall not be allowed on the said tax component.
\n(11) Notwithstanding anything contained in this section, but subject to the provisions of
\nsection 28, no registered taxable person shall be entitled to the credit of any input tax in
\nrespect of any supply of goods and\/or services to him unless
\n(a) he is in possession of a tax invoice, debit note, supplementary invoice or such other
\ntaxpaying document as may be prescribed, issued by a supplier registered under this Act
\nor the IGST Act;
\n(b) he has received the goods and\/or services;
\n(c) the tax charged in respect of such supply has been actually paid to<\/p>\n
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\namount, by way of debit in the electronic credit or cash ledger, equivalent to the credit
\nof input tax in respect of inputs held in stock and inputs contained in semi-finished or
\nfinished goods held in stock on the day immediately preceding the date of such switch
\nover 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, lying
\nin his electronic credit ledger shall lapse.
\n(13) The amount payable under sub-section (12) shall be calculated in accordance with
\ngenerally accepted accounting principles in such manner as may be prescribed.
\n(14) In case of supply of capital goods on which input tax credit has been taken, the
\nregistered taxable person shall pay an amount equal to the input tax credit taken on the
\nsaid capital goods reduced by the percentage points as may be specified in this behalf or
\nthe tax on the transaction value of such capita<\/p>\n
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\nthe inputs are directly sent to a job worker for job-work without their being first brought
\nto his place of business, and in such a case, the period of one hundred and eighty days
\nshall be counted from the date of receipt of the inputs by the job worker.
\n(2) The “principal” shall, subject to such conditions and restrictions as may be
\nprescribed, be entitled to take credit of input tax on capital goods sent to a job-worker
\nPage 38 of 190
\nfor job-work if the said capital goods, after completion of job-work, are received back by
\nhim within two years of their being sent out:
\nProvided that the “principal” shall be entitled to take credit of input tax on capital goods
\neven if the capital goods are directly sent to a job worker for job-work without their
\nbeing first brought to his place of business, and in such a case, the period of two years
\nshall be counted from the date of receipt of the capital go<\/p>\n
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\nStates.
\n(CGST ACT)
\n(1) The Input Service Distributor may distribute, in such manner as may be prescribed,
\nthe credit of SGST as IGST, by way of issue of a prescribed document containing, inter
\nalia, the amount of input tax credit being distributed or being reduced thereafter, where
\nthe Distributor and the recipient of credit are located in different States.
\n(SGST Act)
\n(2) The Input Service Distributor may distribute, in such manner as may be prescribed,
\nthe credit of CGST and IGST as CGST, by way of issue of a prescribed document
\ncontaining, inter alia, the amount of input tax credit being distributed or being reduced
\nthereafter, where the Distributor and the recipient of credit, being a business vertical,
\nare located in the same State.
\n(CGST Act)
\n(2) The Input Service Distributor may distribute, in such manner as may be prescribed,
\nthe credit of SGST and IGST as SGST, by way of issue of a prescribed document
\ncontaining, inter alia,<\/p>\n
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\nsupplier, during the relevant period, to the aggregate of the turnover of all such
\nsuppliers to whom such input service is attributable and which are operational in the
\ncurrent year, during the said relevant period.
\n18. Manner of recovery of credit distributed in excess
\n(1) Where the credit distributed by the Input Service Distributor is in excess of the credit
\navailable for distribution by him, the excess credit so distributed shall be recovered from
\nsuch distributor along with interest, and the provisions of section 51 shall apply mutatis
\nmutandis for effecting such recovery.
\n(2) Where the Input Service Distributor distributes the credit in contravention of the
\nprovisions contained in section 17 resulting in excess distribution of credit to one or
\nmore suppliers, the excess credit so distributed shall be recovered from such supplier(s)
\nalong with interest, and the provisions of section 51 shall apply mutatis mutandis for
\neffecting such r<\/p>\n
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\nan earlier law, it shall not be necessary for him to apply for fresh registration under this
\nsection and he shall follow the procedure as may be prescribed in this behalf.
\n(2)
\nNotwithstanding anything contained in sub-section (1), a person having multiple
\nbusiness verticals in a State may obtain a separate registration for each business
\nvertical, subject to such conditions as may be prescribed.
\n(3)
\nA person, though not liable to be registered under Schedule III, may get himself
\nregistered voluntarily, and all provisions of this Act, as are applicable to a registered
\ntaxable person, shall apply to such person.
\n(4) Every person shall have a Permanent Account Number issued under the Income
\nTax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under sub-
\nsection (1), (2) or (3).
\n(4A) Notwithstanding anything contained in sub-section (4), a non-resident taxable
\nperson may be granted regi<\/p>\n
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\nmay be, rejected after due verification in the manner and within such period as may be
\nprescribed.
\n(8) The proper officer shall not reject the application for registration or the Unique
\nIdentity Number without giving a notice to show cause and without giving the person a
\nreasonable opportunity of being heard.
\n(8A) A certificate of registration shall be issued in the prescribed form, with effective
\ndate as may be prescribed.
\nPage 41 of 190
\n(9) A registration or an Unique Identity Number shall be deemed to have been granted
\nafter the period prescribed under sub-section (7), if no deficiency has been
\ncommunicated to the applicant by the proper officer within that period.
\n(10) Notwithstanding anything contained in sub-section (7), any rejection of application
\nfor registration or the Unique Identity Number under the CGST Act \/ SGST Act shall be
\ndeemed to be a rejection of application for registrat<\/p>\n
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\n(2) Notwithstanding anything to the contrary contained in this Act, a casual taxable
\nperson or a non-resident taxable person shall, at the time of submission of application
\nfor registration under sub-section (1) of section 19, make an advance deposit of tax in
\nan amount equivalent to the estimated tax liability of such person for the period for
\nwhich the registration is sought:
\nProvided that where any extension of time is sought under sub-section (1), such taxable
\nperson shall deposit an additional amount of tax equivalent to the estimated tax liability
\nof such person for the period for which the extension is sought.
\n(3) The amount deposited under sub-section (2) shall be credited to the electronic cash
\nledger of such person and shall be utilized in the manner provided under section 35.
\n20. Amendment of registration
\n(1) Every registered taxable person shall inform the proper officer of any changes in
\nthe information furnish<\/p>\n
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\nprescribed manner, by the registered taxable person or by his legal heirs, in case of
\ndeath of such person, cancel the registration, in such manner and within such period as
\nmay be prescribed, having regard to the circumstances where, –
\n(a) the business has been discontinued, transferred fully for any reason including
\ndeath of the proprietor, amalgamated with other legal entity, demerged or otherwise
\ndisposed of; or
\n(b)
\nthere is any change in the constitution of the business; or
\n(c) the taxable person, other than the person registered under sub-section (3) of
\nsection 19, is no longer liable to be registered under Schedule III.
\n(2) The proper officer may, in the manner as may be prescribed, cancel the
\nregistration of taxable person from such date, including any anterior date, as he may
\ndeem fit, where, –
\n(a)
\nthe registered taxable person has contravened such provisions of the Act or the
\nrules made thereunder as may be prescribed; or
\n(b) a p<\/p>\n
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\nafter the date of cancellation.
\n(6)
\nThe cancellation of registration under the CGST Act\/SGST Act shall be deemed to
\nbe a cancellation of registration under the SGST Act\/CGST Act.
\nPage 43 of 190
\n(7) Every registered taxable person whose registration is cancelled shall pay an amount,
\nby way of debit in the electronic credit or cash ledger, equivalent to the credit of input
\ntax in respect of inputs held in stock and inputs contained in semi-finished or finished
\ngoods held in stock on the day immediately preceding the date of such cancellation or
\nthe output tax payable on such goods, whichever is higher, calculated in such manner as
\nmay be prescribed:
\nProvided that in case of capital goods, the taxable person shall pay an amount equal to
\nthe input tax credit taken on the said capital goods reduced by the percentage points as
\nmay be prescribed in this behalf or the tax on the transaction value of such capital good<\/p>\n
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\nreasonable opportunity of being heard.
\n(4) Revocation of cancellation of registration under the CGST Act \/ SGST Act shall be
\ndeemed to be a revocation of cancellation of registration under the SGST Act \/ CGST Act.
\nPage 44 of 190
\n23. Tax invoice
\nCHAPTER- VII
\nTAX INVOICE, CREDIT AND DEBIT NOTES
\nA registered taxable person supplying,-
\n(i)
\ntaxable goods shall issue, at the time of supply, a tax invoice showing the
\ndescription, quantity and value of goods, the tax charged thereon and such other
\nparticulars as may be prescribed;
\n(ii)
\ntaxable services shall issue a tax invoice, within the prescribed time, showing the
\ndescription, the tax charged thereon and such other particulars as may be prescribed:
\nProvided that a registered taxable person may issue a revised invoice against the invoice
\nalready issued during the period starting from the effective date of registration till the
\ndate of issuance of certificate of registr<\/p>\n
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\n(1) Where a tax invoice has been issued for supply of any goods and\/or services and the
\ntaxable value and\/or tax charged in that tax invoice is found to exceed the taxable value
\nand\/or tax payable in respect of such supply, the taxable person, who has supplied such
\ngoods and\/or services, may issue to the recipient a credit note containing such
\nparticulars as may be prescribed on or before the thirtieth day of September following
\nthe end of the financial year in which such supply was made, or the date of filing of the
\nrelevant annual return, whichever is earlier:
\nProvided that no credit note shall be issued by the said person if the incidence of tax and
\ninterest on such supply has been passed by him to any other person.
\n(2) Where a tax invoice has been issued for supply of any goods and\/or services and the
\ntaxable value and\/or tax charged in that tax invoice is found to be less than the taxable
\nvalue and\/or tax payable in respect of such supply, the <\/p>\n
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\n(1) Every registered taxable person, other than an input service distributor and a person
\npaying tax under the provisions of section 8 or section 37, shall furnish, electronically, in
\nsuch form and manner as may be prescribed, the details of outward supplies of goods
\nand\/or services effected, during a tax period on or before the tenth day of the month
\nsucceeding the said tax period and such details shall be communicated to the recipient of
\nthe said supplies within the time and in the manner as may be prescribed:
\nProvided that the Board \/ Commissioner may, for valid and sufficient reasons, by
\nnotification, extend the time limit for furnishing such details:
\nProvided further that any extension of time limit by the Board\/Commissioner of State
\nGoods and Services Tax shall be deemed to be approved by the Commissioner of State
\nGoods and Services Tax\/Board:
\nExplanation. For the purposes of this section, the expression \u201cdetails of out<\/p>\n
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\nor filing of the relevant annual return, whichever is earlier.
\n26. Furnishing details of inward supplies
\n(1)
\nEvery registered taxable person, other than an input service distributor and a
\nperson paying tax under the provisions of section 8 or section 37, shall verify, validate,
\nmodify or, if required, delete the details relating to outward supplies and credit or debit
\nnotes communicated under sub-section (1) of section 25 to prepare the details of his
\ninward supplies and credit or debit notes and may include therein, the details of inward
\nsupplies and credit or debit notes received by him in respect of such supplies that have
\nnot been declared by the supplier under sub-section (1) of section 25.
\n(2) Every registered taxable person shall furnish, electronically, the details of inward
\nsupplies of taxable goods and\/or services, including inward supplies of services on which
\nthe tax is payable on reverse charge <\/p>\n
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\ntax on account of such error or omission, in the return to be furnished for such tax
\nperiod:
\nProvided that no rectification of error or omission in respect of the details furnished
\nunder sub-section (2) shall be allowed after filing of the return under section 27 for the
\nmonth of September following the end of the financial year to which such details pertain,
\nor filing of the relevant annual return, whichever is earlier.
\n27. Returns
\n(1) Every registered taxable person shall, for every calendar month or part thereof,
\nfurnish, in such form and in such manner as may be prescribed, a return, electronically,
\nof inward and outward supplies of goods and\/or services, input tax credit availed, tax
\npayable, tax paid and other particulars as may be prescribed within twenty days after
\nthe end of such month:
\nProvided that a registered taxable person paying tax under the provisions of section 8 of<\/p>\n
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\neffected during such tax period.
\n(5) Every registered taxable person required to deduct tax at source shall furnish a
\nreturn, electronically, in such form and in such manner as may be prescribed, for the
\nPage 48 of 190
\nmonth in which such deductions have been made along with the payment of tax so
\ndeducted, within ten days after the end of such month.
\n(6) Every Input Service Distributor shall, for every calendar month or part thereof,
\nfurnish a return, electronically, in such form and in such manner as may be prescribed,
\nwithin thirteen days after the end of such month.
\n(7) Subject to the provisions of sections 25 and 26, if any taxable person after
\nfurnishing a return under sub-section (1) discovers any omission or incorrect particulars
\ntherein, other than as a result of scrutiny, audit, inspection or enforcement activity by
\nthe tax authorities, he shall rectify such omission or incorrect particulars in the return to
\nbe file<\/p>\n
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\nshall furnish the first return for the period starting from the date on which he becomes a
\nregistered taxable person till the end of the quarter in which the registration has been
\ngranted.
\n(2)
\nProvisions of section 25, 26 and 27, other than the provision pertaining to tax
\nperiod, shall apply mutatis mutandis to the said person furnishing return under sub-
\nsection (1).
\n28. Claim of input tax credit and provisional acceptance thereof
\nEvery taxable person shall, subject to such conditions and restrictions as may be
\nprescribed in this behalf, be entitled to take credit of input tax, as self-assessed, in his
\nreturn and such amount shall be credited, on a provisional basis, to his electronic credit
\nledger to be maintained in the manner as may be prescribed:
\nProvided that a taxable person who has not furnished a valid return under section 27 of
\nthe Act shall not be allowed to utilize such credit till<\/p>\n
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\naccepted and such acceptance shall be communicated, in the manner as may be
\nprescribed, to the recipient.
\n(3) Where the input tax credit claimed by a recipient in respect of an inward supply is in
\nexcess of the tax declared by the supplier for the same supply or the outward supply is
\nnot declared by the supplier in his valid returns, the discrepancy shall be communicated
\nto both such persons in the manner as may be prescribed.
\n(4) The duplication of claims of input tax credit shall be communicated to the recipient in
\nthe manner as may be prescribed.
\n(5) The amount in respect of which any discrepancy is communicated under sub-section
\n(3) and which is not rectified by the supplier in his valid return for the month in which
\ndiscrepancy is communicated shall be added to the output tax liability of the recipient, in
\nthe manner as may be prescribed, in his return for the month succeeding the month in
\nwhich the discrepancy is communicated<\/p>\n
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\nPage 50 of 190
\namount in the corresponding head of his electronic cash ledger in the manner as may be
\nprescribed:
\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 provisions
\nof sub-section (7) shall be added to the output tax liability of the recipient in his return
\nfor the month in which such contravention takes place and such recipient shall be liable
\nto pay interest on the amount so added at the rate specified in sub-section (3) of section
\n36.
\n29A. Matching, reversal and reclaim of reduction in output tax liability
\n(1)
\nThe details of every credit note relating to outward supply furnished by a taxable
\nperson (hereinafter referred to in this section as the 'supplier') for a tax period shall, in
\nthe manner and within the time prescribed, be matched –
\n(a) with t<\/p>\n
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\nto the supplier in the manner as may be prescribed.
\n(5) The amount in respect of which any discrepancy is communicated under sub-section
\n(3) and which is not rectified by the recipient in his valid return for the month in which
\ndiscrepancy is communicated shall be added to the output tax liability of the supplier, in
\nthe 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
\nin his return for the month in which such duplication is communicated.
\nPage 51 of 190
\n(7) The supplier shall be eligible to reduce, from his output tax liability, the amount
\nadded under sub-section (5) if the recipient declares the details of the credit note in his
\nvalid return within the time specified in sub-section (7) of section 27.
\n(8) A supplier i<\/p>\n
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\npay interest on the amount so added at the rate specified in sub-section (3) of section
\n36.
\n30. Annual return
\n(1) Every registered taxable person, other than an input service distributor, a deductor
\nunder section 37, a casual taxable person and a non-resident taxable person, shall
\nfurnish an annual return for every financial year electronically in such form and in such
\nmanner as may be prescribed on or before the thirty first day of December following the
\nend of such financial year.
\n(2) Every taxable person who is required to get his accounts audited under sub-
\nsection (4) of section 42 shall furnish, electronically, the annual return along with the
\naudited copy of the annual accounts and a reconciliation statement, reconciling the value
\nof supplies declared in the return furnished for the year with the audited annual financial
\nstatement, and such other particulars as may be prescribed.
\n31. Final return<\/p>\n
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\nsection 30 by the due date shall be liable to a late fee of rupees one hundred for every
\nday during which such failure continues subject to a maximum of an amount calculated
\nat a quarter percent of his aggregate turnover.
\n34. Tax Return Preparers
\n(1) The appropriate Government may, by rules, prescribe the manner of approval of
\nTax Return Preparers, their eligibility conditions, duties and obligations, manner of
\nremoval and such other conditions as may be relevant for their functioning as a Tax
\nReturn Preparer.
\n(2) A registered taxable person may, in the manner prescribed, authorise an
\napproved Tax Return Preparer to furnish the details of outward supplies under section
\n25, the details of inward supplies under section 26 and the return under section 27, 30
\nor section 31, as the case may be, and such other tasks as may be prescribed.
\n(3)
\nNotwithstanding anything contained in sub-section (2), the responsibility for
\ncorrectness of any particulars furnished<\/p>\n
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\nprescribed.
\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
\nprovisions of the Act or the rules made thereunder in such manner and subject to such
\nconditions and within such time as may be prescribed.
\n(4) The amount available in the electronic credit ledger may be used for making any
\npayment towards tax payable under the provisions of the Act or the rules made
\nthereunder in such manner and subject to such conditions and within such time as may
\nbe prescribed.
\n(5)(a) The amount of input tax credit on account of IGST available in the electronic
\ncredit ledger shall first be utilized towards payment of IGST and the amount remaining,
\nif any, may be utilized towards the payment of CGST and SGST, in that order.
\n(b) The amount of input tax credit on account of CGST available in the electronic credit
\nledger shall first be utilized <\/p>\n
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\nin an electronic register as may be prescribed.
\n(8)
\nEvery taxable person shall discharge his tax and other dues under this Act or the
\nrules made thereunder in the following order:
\n(a)
\n(b)
\n(c)
\nself-assessed tax, and other dues related to returns of previous tax periods;
\nself-assessed tax, and other dues related to return of current tax period;
\nany other amount payable under the Act or the rules made thereunder including
\nthe demand determined under section 51.
\n(9) Every person who has paid the tax on goods and\/or services under this Act shall,
\nunless the contrary is proved by him, be deemed to have passed on the full incidence of
\nsuch tax to the recipient of such goods and\/or services.
\nExplanation. For the purposes of this section, the expression “tax dues” means the tax
\npayable under this Act and does not include interest, fee and penalty.
\n36. Interest on delayed payment of tax
\n(1) Every person liable to pay tax in accordance wi<\/p>\n
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\nLocal authority, or
\nGovernmental agencies, or
\nsuch persons or category of persons as may be notified, by the Central or a State
\nGovernment on the recommendations of the Council,
\n[hereinafter referred to in this section as “the deductor\u201d], to deduct tax at the rate of
\none percent from the payment made or credited to the supplier [hereinafter referred to
\nin this section as “the deductee”] of taxable goods and\/or services, notified by the
\nCentral or a State Government on the recommendations of the Council, where the total
\nvalue of such supply, under a contract, exceeds rupees ten lakh.
\nExplanation. – For the purpose of deduction of tax specified above, the value of supply
\nshall be taken as the amount excluding the tax indicated in the invoice.
\nPage 55 of 190
\n(2)
\nThe amount deducted as tax under this section shall be paid to the credit of the
\nappropriate Government by the deductor within ten days after the end of the month in
\nwhich such deduction is made, in the <\/p>\n
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\namount deducted as tax under sub-section (1), he shall be liable to pay interest in
\naccordance with the provisions of section 36, in addition to the amount of tax deducted.
\n(7) Determination of the amount in default under this section shall be made in the
\nmanner specified in section 51.
\n(8) Refund to the deductor or the deductee, as the case may be, arising on account
\nof excess or erroneous deduction shall be dealt with in accordance with the provisions of
\nsection 38:
\nProvided that no refund to deductor shall be granted if the amount deducted has been
\ncredited to the electronic cash ledger of the deductee.
\nCHAPTER-IXA
\nTRANSFER OF INPUT TAX CREDIT
\nPage 56 of 190
\n37A. Transfer of input tax credit
\nOn utilization of input tax credit availed under the CGST Act for payment of tax
\ndues under the IGST Act as per sub-section (5) of section 35, the amount collected as
\nCGST shall stand reduced by an amount equal to the credit so u<\/p>\n
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\nform and in such manner as may be prescribed:
\nProvided that the limitation of two years shall not apply where such tax or interest or the
\namount referred to above has been paid under protest.
\n(2) Subject to the provisions of sub-section (8), a taxable person may claim refund of
\nany unutilized input tax credit at the end of any tax period:
\nProvided that no refund of unutilized input tax credit shall be allowed in cases other than
\nexports or in cases where the credit has accumulated on account of rate of tax on inputs
\nbeing higher than the rate of tax on outputs:
\nProvided further that no refund of unutilized input tax credit shall be allowed in cases
\nwhere the goods exported out of India are subjected to export duty.
\n(3) The application shall be accompanied by\u2014
\n(a) such documentary evidence as may be prescribed to establish that a refund is due to
\nthe applicant, and
\n(b) such documentary or other evidence (including the documents referred to in s<\/p>\n
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\nthe case of any claim for refund on account of export of goods and\/or services made by
\nsuch category of registered taxable persons as may be notified in this behalf, refund
\neighty percent of the total amount so claimed, excluding the amount of input tax credit
\nprovisionally accepted, on a provisional basis, in the manner and subject to such
\nconditions, limitations and safeguards as may be prescribed and the remaining twenty
\npercent may be refunded after due verification of documents furnished by the applicant.
\nPage 58 of 190
\n(5) The proper officer shall issue the order under sub-section (4) within ninety days
\nfrom the date of receipt of application.
\nExplanation. The “application” for the purpose of this sub-section shall mean complete
\napplication containing all information as may be prescribed.
\n(6) Notwithstanding anything contained in sub-section (4) or sub-section (4A), the
\nrefundable amount shall, instead of being credited to the Fund, be paid to<\/p>\n
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\nunder the said sub-section to a registered taxable person who has defaulted in furnishing
\nany return or who is required to pay any tax, interest or penalty, which has not been
\nstayed by any Court, Tribunal or Appellate Authority by the specified date, the proper
\nofficer may-
\n(a) withhold payment of refund due until the said person has submitted the return or
\npaid the tax, interest or penalty, as the case may be;
\n(b) deduct from the refund due, any tax, interest or penalty which the taxable person is
\nliable to pay but which remains unpaid.
\nExplanation. For the purposes of this sub-section the expression “specified date” shall
\nmean-
\n(a) the last date for filing an appeal under this Act, in a case where no appeal has been
\nfiled
\n(b) thirty days after the last date for filing an appeal under this Act, in a case where an
\nappeal has been filed.
\n(9) Notwithstanding anything contained in sub-section (4) or sub-section (4A), where an
\norder giving rise to a refund is the sub<\/p>\n
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\nof India, or refund of tax on the supply of goods regarded as deemed exports, or refund
\nof unutilized input tax credit as provided under sub-section (2).
\n(B)
\n“relevant date” means
\n–
\n(a) in the case of goods exported out of India where a refund of tax paid is available in
\nrespect of the goods themselves or, as the case may be, the inputs or input services
\nused in such goods, –
\n(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in
\nwhich such goods are loaded, leaves India, or
\n(ii) if the goods are exported by land, the date on which such goods pass the frontier, or
\n(iii) if the goods are exported by post, the date of despatch of goods by Post Office
\nconcerned to a place outside India;
\n(b) in the case of supply of goods regarded as deemed exports where a refund of tax
\npaid is available in respect of the goods, the date on which the return relating to such
\ndeemed exports is filed;
\n(c) in the case of goods returned for being remade, <\/p>\n
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\n(g) in the case where tax is paid provisionally under this Act or the rules made
\nthereunder, the date of adjustment of tax after the final assessment thereof.
\n39. Interest on delayed refunds
\nIf any tax refundable under section 38 to any applicant is not refunded within
\nthree months from the date of receipt of application under sub-section (1) of that
\nPage 60 of 190
\nsection, interest at such rate as may be specified in the notification issued by the Central
\nor a State Government on the recommendation of the Council shall be payable in respect
\nof such refund from the date immediately after the expiry of the due date for sanction of
\nrefund under section 38 till the date of refund of such tax.
\nExplanation.- Where any order of refund is made by an Appellate Authority, Tribunal or
\nany Court against an order of the proper officer under sub-section (4) or sub-section
\n(4A) of section 38, the order passed by the Appellate Authority, Trib<\/p>\n
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\nto the Fund in such form as may be prescribed in consultation with the Comptroller and
\nAuditor-General of India.
\nPage 61 of 190
\nCHAPTER-XI
\nACCOUNTS AND RECORDS
\n42. Accounts and other records
\n(1) Every registered person shall keep and maintain, at his principal place of business,
\nas mentioned in the certificate of registration, a true and correct account of production
\nor manufacture of goods, of inward or outward supply of goods and\/or services, of stock
\nof goods, of input tax credit availed, of output tax payable and paid, and such other
\nparticulars as may be prescribed in this behalf:
\nProvided that where more than one place of business is specified in the certificate of
\nregistration, the accounts relating to each place of business shall be kept at such places
\nof business concerned:
\nProvided further that the registered person may keep and maintain such accounts and
\nother particulars in the electronic form in th<\/p>\n
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\nor other records under sub-section (1) of section 42 shall retain them until the expiry of
\nsixty months from the last date of filing of Annual Return for the year pertaining to such
\naccounts and records:
\nProvided that a taxable person, who is a party to an appeal or revision or any other
\nproceeding before any Appellate Authority or Tribunal or Court, whether filed by him or
\nby the department, shall retain the books of account and other records pertaining to the
\nsubject matter of such appeal or revision or proceeding for a period of one year after
\nfinal disposal of such appeal or revision or proceeding, or for the period specified under
\nsub-section (1), whichever is later.
\nCHAPTER – XIA
\nJOB WORK
\n43A. Special procedure for removal of goods for certain purposes
\nPage 62 of 190
\n(1) The Commissioner may, by special order and subject to conditions as may be
\nspecified by him, permit a registered taxab<\/p>\n
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\nthis behalf.
\n(2) The responsibility for accountability of the goods including payment of tax
\nthereon shall lie with the “principal”.
\n43B. Definitions
\nCHAPTER – XIB
\nELECTRONIC COMMERCE
\nPage 63 of 190
\nIn this Chapter, unless the context otherwise requires, –
\n(a) \u2018aggregator' means a person, who owns and manages an electronic platform, and
\nby means of the application and a communication device, enables a potential customer
\nto connect with the persons providing service of a particular kind under the brand name
\nor trade name of the said aggregator;
\n(b) brand name or trade name' means, a brand name or a trade name, whether
\nregistered or not, that is to say, a name or a mark, such as an invented word or writing,
\nor a symbol, monogram, logo, label, signature, which is used for the purpose of
\nindicating, or so as to indicate a connection, in the course of trade, between a service
\nand some other person using the n<\/p>\n
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\nany other services incidental to or in connection there with but shall not include persons
\nengaged in supply of such goods and\/or services on their own behalf.
\n43C. Collection of tax at source
\n(1)
\nNotwithstanding anything to the contrary contained in the Act or in any contract,
\narrangement or memorandum of understanding, every electronic commerce operator
\n(hereinafter referred to in this section as the “operator”) shall, at the time of credit of
\nany amount to the account of the supplier of goods and\/or services or at the time of
\npayment of any amount in cash or by any other mode, whichever is earlier, collect an
\namount, out of the amount payable or paid to the supplier, representing consideration
\ntowards the supply of goods and\/or services made through it, calculated at such rate as
\nmay be notified in this behalf by the Central\/State Government on the recommendation
\nof the Council.
\n(2) The power t<\/p>\n
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\nto the credit of the appropriate Government shall be deemed to be a payment of tax on
\nbehalf of the concerned supplier and the supplier shall claim credit, in his electronic cash
\nledger, of the tax collected and reflected in the statement of the operator filed under
\nsub-section (4), in the manner prescribed.
\n(6)
\nThe details of supplies and the amount collected under sub-section (1) during a
\ncalendar month, and furnished by every operator under sub-section (4), shall, in the
\nmanner and within the period prescribed, be matched with the corresponding details of
\noutward supplies furnished by the concerned supplier in his valid return for the same
\ncalendar month or any preceding calendar month.
\n(7) Where the details of outward supply, on which the tax has been collected, as
\ndeclared by the operator under sub-section (4) do not match with the corresponding
\ndetails declared by the supplier under section 25, the discrepancy shall be <\/p>\n
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\nfurnish such details relating to\u20ac\u2022
\n(a) supplies of goods and\/or services effected through such operator during any
\nperiod, or
\n(b) stock of goods held by the suppliers making supplies through such operator in
\nthe godowns or warehouses, by whatever name called, managed by such
\noperators and declared as additional places of business by such suppliers –
\nas may be specified in the notice.
\n(11)
\nEvery operator on whom a notice has been served under sub-section (10) shall
\nfurnish the required information within five working days of the date of service of such
\nnotice.
\nPage 65 of 190
\n(12) Any person who fails to furnish the information required by the notice served
\nunder sub-section (10) shall, without prejudice to any action that is or may be taken
\nunder section 66, be liable to a penalty which may extend to rupees twenty-five
\nthousand.
\nExplanation For the purposes of this section, the expression 'concerned supplier' shall
\nmean the supplier<\/p>\n
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\nvalue as may be specified by him.
\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 in this behalf, and with such surety
\nor security as the proper officer may deem fit, binding the taxable person for payment of
\nthe difference between the amount of tax as may be finally assessed and the amount of
\ntax provisionally assessed.
\n(3) The proper officer shall, within a period not exceeding six months from the date of
\nthe communication of the order issued under sub-section (1), pass the final assessment
\norder after taking into account such information as may be required for finalizing the
\nassessment:
\nProvided that the period specified in this sub-section may, on sufficient cause being
\nshown and for reasons to be recorded in writing, be extended by the Joint\/Additional
\nCommissioner for a further period not exceeding six months and by the Commissioner
\nfor such further period as he ma<\/p>\n
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\nany, after such scrutiny in such manner as may be prescribed and seek his explanation
\nthereto.
\n(3) In case the explanation is found acceptable, the taxable person shall be informed
\naccordingly and no further action shall be taken in this regard.
\n(4) 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
\nor where the taxable person, after accepting the discrepancies, fails to take the
\ncorrective measure within a reasonable period, the proper officer may initiate
\nappropriate action including those under section 49, 50 or section 60, or proceed to
\ndetermine the tax and other dues under sub-section (6) of section 51 A or under sub-
\nsection (6) of section 51 B.
\n46. Assessment of non-filers of returns
\n(1) Where a registered taxable person fails to furnish the return required under section
\n27 or section 31, even after the service of a notice und<\/p>\n
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\nbest of his judgement for the relevant tax periods and issue an assessment order within
\na period of five years from the due date for filing of the annual return for the year to
\nwhich the tax not paid relates:
\nProvided that no such assessment order shall be passed without giving a notice to show
\ncause and without giving the person a reasonable opportunity of being heard.
\n48. Summary assessment in certain special cases
\n(1)
\nThe proper officer may, on any evidence showing a tax liability of a person coming
\nto his notice, with the previous permission of [Additional\/Joint Commissioner], proceed
\nto assess the tax liability of such person to protect the interest of revenue and issue an
\nassessment order, if he has sufficient grounds to believe that any delay in doing so will
\nadversely affect the interest of revenue:
\nProvided that where the taxable person to whom the liability pertains is not ascertainable
\nand such liability pertains to <\/p>\n
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\nnot less than fifteen working days, prior to the conduct of audit in the manner
\nprescribed.
\n(4) The audit under sub-section (1) shall be carried out in a transparent manner and
\ncompleted within a period of three months from the date of commencement of audit:
\nProvided that where the [Commissioner] is satisfied that audit in respect of such taxable
\nperson cannot be completed within three months from the date of commencement of
\naudit, he may, for the reasons to be recorded in writing, extend the period by a further
\nperiod not exceeding six months.
\nExplanation. For the purposes of this sub-section, 'commencement of audit' shall mean
\nthe date on which the records and other documents, called for by the tax authorities, are
\nmade available by the taxable person or the actual institution of audit at the place of
\nbusiness, whichever is later.
\n(5)
\n(i)
\nDuring the course of audit, the authorised officer may requi<\/p>\n
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\nthe value has not been correctly declared or the credit availed is not within the normal
\nlimits, he may,
\nwith the prior approval of the [Commissioner], direct such taxable person
\nby notice in writing to get his records including books of account examined and audited
\nPage 70 of 190
\nby a chartered accountant or a cost accountant as may be nominated by the
\n[Commissioner] in this behalf.
\n(2) The chartered accountant or cost accountant so nominated shall, within the
\nperiod of ninety days, submit a report of such audit duly signed and certified by him to
\nthe said [Deputy\/Assistant Commissioner] mentioning therein such other particulars as
\nmay be specified:
\nProvided that the proper officer may, on an application made to him in this behalf by the
\ntaxable person or the chartered accountant or cost accountant or for any material and
\nsufficient reason, extend the said period by another ninety days.
\n(3)
\nThe provision of sub-section (1) shall have effect notwithst<\/p>\n
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\nA. Determination of tax not paid or short paid or erroneously refunded or input tax
\ncredit wrongly availed or utilized for any reason other than fraud or any willful-
\nmisstatement or suppression of facts
\n(1) Where any tax has not been paid or short paid or erroneously refunded, or where
\ninput tax credit has been wrongly availed or utilized for any reason, other than the
\nreason of fraud or any willful-misstatement or suppression of facts to evade tax, the
\nproper officer shall serve notice on the person chargeable with tax which has not been so
\npaid or which has been so short paid or to whom the refund has erroneously been made,
\nor who has wrongly availed or utilized input tax credit, requiring him to show cause why
\nhe should not pay the amount specified in the notice along with interest payable thereon
\nunder section 36 and penalty leviable under the provisions of this Act or the rules made
\nthereunder.
\n(2) Where a notice has<\/p>\n
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\ninformation, shall not serve any notice under sub-section (1) or, as the case may be, the
\nstatement under sub-section (2), in respect of the tax so paid or any penalty leviable
\nunder the provisions of this Act or the rules made there under.
\n(4)
\nWhere the proper officer is of the opinion that the amount paid under sub-section
\n(3) falls short of the amount actually payable, he shall proceed to issue the notice as
\nprovided for in sub-section (1) in respect of such amount which falls short of the amount
\nactually payable.
\n(5) Where any person chargeable with tax under sub-section (1) or under sub-section
\n(2) pays the said tax along with interest payable under section 36 within thirty days of
\nissue of show cause notice, no penalty shall be payable and all proceedings in respect of
\nthe said tax shall be deemed to be concluded.
\n(6) The proper officer shall, after considering the representation, if any, made by person
\nchargeable with tax,<\/p>\n
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\non the person chargeable with tax which has not been so paid or which has been so
\nshort paid or to whom the refund has erroneously been made, or who has wrongly
\navailed or utilized input tax credit requiring him to show cause why he should not pay
\nthe amount specified in the notice along with interest payable thereon under section 36
\nand a penalty equivalent to the tax specified in the notice.
\n(2) Where a notice has been issued for any period under sub-section (1), the proper
\nofficer may serve a statement, containing the details of tax not paid or short paid or
\nerroneously refunded or input tax credit wrongly availed or utilized for such periods
\nother than those covered under sub-section (1), on the person chargeable with tax. The
\nservice of such statement shall be deemed to be service of notice on such person under
\nthe aforesaid sub-section (1), subject to the condition that the grounds relied upon for
\nsuch periods other than those covered under sub-section (<\/p>\n
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\nactually payable.
\n(5)
\nWhere any person chargeable with tax under sub-section (1) or under sub-section
\n(2) pays the said tax along with interest payable under section 36 and a penalty
\nequivalent to twenty five per cent of such tax within thirty days of communication of the
\nnotice, all proceedings in respect of the said tax shall be deemed to be concluded.
\n(6) The proper officer shall, after considering the representation, if any, made by the
\nperson chargeable with tax, determine the amount of tax, interest and penalty due from
\nsuch person and issue an order.
\nPage 73 of 190
\n(7)
\nThe proper officer shall issue the order under sub-section (6) within a period of
\nfive years from the due date or the actual date, whichever is earlier, for filing of annual
\nreturn for the year to which the tax not paid or short paid or input tax credit wrongly
\navailed or utilized relates or, as the case may be, within five years from the date of
\nerroneous <\/p>\n
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\nthe notice were issued under sub-section A (1) or A (2).
\n(3) An opportunity of personal hearing shall be granted where a request is received in
\nwriting from the person chargeable with tax or penalty, or where any adverse decision is
\ncontemplated against such person.
\n(4) The proper officer shall, if sufficient cause is shown by the person chargeable with
\ntax, grant time, from time to time, to the said person and adjourn the hearing for
\nreasons to be recorded in writing:
\nProvided that no such adjournment shall be granted more than three times to a person
\nduring the proceeding.
\n(5) The proper officer, in his order, shall set out the relevant facts and the basis of his
\ndecision.
\n(6) The amount of tax, interest and penalty demanded in the order shall not be in excess
\nof the amount specified in the notice and no demand shall be confirmed on grounds
\nother than the grounds specified in the notice.
\n(7) Where the Appellate Authority or Tribunal or<\/p>\n