THE ARUNACHAL PRADESH GOODS AND SERVICES TAX

(AMENDMENT) ACT, 2025

(Act No. 5 of 2025)

Act

further to amend the Arunachal Pradesh Goods and Services Tax Act, 2017, (Act No. 7

of 2017).

Whereas, it is expedient to amend the Arunachal Pradesh Goods and Services

Tax Act, 2017, (Act No. 7 of 2017) (hereinafter referred to as the principal Act),

in the manner hereinafter appearing;

Be it enacted by the Legislative Assembly of Arunachal Pradesh in the Seventy-sixth

Year of the Republic of India as follows:-

Short title,

extent and

commencement.

Preamble.

(1) This Act may be called the Arunachal Pradesh Goods and Services

Tax (Amendment) Act, 2025.

(2)

It extends to the whole of Arunachal Pradesh.

(3)

Save as otherwise provided, the provisions of this Act shall come

into force on such date as the State Government may, by notification

in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions

of this Act and any reference in any such provision to the commencement

of this Act shall be construed as a reference to the coming into force of

that provision.

In the principal Act, in Section 2, for clause (61), the following clause

shall be substituted, namely:-

‘(61) “Input Service Distributor” means an office of the supplier of

goods or services or both which receives tax invoices towards the

receipt of input services, including invoices in respect of services liable

to tax under sub-section (3) or sub-section (4) of Section 9, for or on

behalf of distinct person referred to Section 25, and liable to distribute

the input tax credit in respect of such invoices in the manner provided

in Section 20;

In the Principal Act, in Section 9, in sub-section (1), after the words

“alcoholic liquor for human consumption”, the words “and un -denatured

extra neutral alcohol or rectified spirit used for manufacture of alcoholic

liquor, for human consumption” shall be inserted.

Amendment

of Section 2.

Amendment of

Section 9.

The Arunachal Pradesh Gazette

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 117, Vol. XXXII, Naharlagun, Monday, April 7, 2025, Chaitra 17, 1947 (Saka)

GOVERNMENT OF ARUNACHAL PRADESH

LAW,LEGISLATIVE AND JUSTICE DEPARTMENT

CIVIL SECRETARIAT

ITANAGAR

—————

NOTIFICATION

The 7th April, 2025

No. Law/Legn-2/2025.—The following Act of the Arunachal Pradesh Legislative Assembly

which was passed in the Fourth Session of the Eighth Legislative Assembly and received the

assent of the Governor of Arunachal Pradesh is hereby published for general information.

(Received the assent of the Governor on 4th April, 2025)

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

In the Principal Act, in Section 10, in sub-section (5 ), after the words and

figures “Section 73 or Section 74”, the words, figures and letter “or Section

74A” shall be inserted.

In the Principal Act, after Section 11, the following section shall be inserted,

namely:-

“11A. Notwithstanding anything contained in this Act, if the Government

is satisfied that-

(a)

a practice was, or is, generally prevalent regarding levy of state tax

(including non-levy thereof) on any supply of goods or services or

both; and

(b)

such supplies were, or are, liable to,-

(i)

state tax, in cases where according to the said practice, state

tax was not, or is not being, levied, or

(ii)

a higher amount of state tax than what was, or is being, levied,

in accordance with the said practice,

the Government may, on the recommendation of the Council, by

notification in the Official Gazette, direct that the whole of the state tax

payable on such supplies, or, as the case may be, the state tax in

excess of that payable on such supplies, but for the said practice, shall

not be required to be paid in respect of the supplies on which the state

tax was not, or is not being levied, or was, or is being, short-levied, in

accordance with the said practice”.

In the Principal Act, in Section 13, in sub-section (3),-

(i)

in clause (b), for the words “by the supplier”, the words “by the

supplier, in cases where invoice is required to be issued by the

supplier; or” shall be substituted;

(ii)

after clause (b), the following clause shall be inserted, namely:-

“(c) the date of issue of invoice by the recipient, in cases where invoice

is to be issued by the recipient:”;

(iii)

in the first proviso, after the words, brackets and letter “or clause

(b)”, the words, brackets and letter “or clause (c)” shall be

inserted.

In the Principal Act, in Section 16, with effect from the 1st day of

July, 2017, after sub-section (4), the following sub-sections shall be

inserted, namely:-

“(5) Notwithstanding anything contained in sub-section (4), in respect

of an invoice or debit note for supply of goods or services or both pertaining

to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the

registered person shall be entitled to take input tax credit in any return

under Section 39 which is filed up to the thirtieth day of November, 2021.

(6) Where registration of a registered person is cancelled under

Section 29 and subsequently the cancellation of registration is revoked

by any order, either under Section 30 or pursuant to any order made by

the Appellate Authority or the Appellate Tribunal or court and where

availment of input tax credit in respect of an invoice or debit note was not

restricted under sub-section (4) on the date of order of cancellation of

registration, the said person shall be entitled to take the input tax credit

in respect of such invoice or debit note for supply of goods or services or

both, in a return under Section 39,-

(i)

filed up to thirtieth day of November following the financial year to

which such invoice or debit note pertains or furnishing of the relevant

annual return, whichever is earlier; or

(ii)

for the period from the date of cancellation of registration or the

effective date of cancellation of registration, as the case may be, till

the date of order of revocation of cancellation of registration, where

such return is filed within thirty days from the date of order of

revocation of cancellation of registration, whichever is later”.

In the Principal Act, in Section 17, in sub-section (5), in clause (i), for the

words and figures “Sections 74, 129 and 130”, the words and figures

“Section 74 in respect of any period up to Financial Year 2023-24" shall

be substituted.

Amendment of

Section 13.

Amendment of

Section 16.

Amendment of

Section 17.

Amendment of

Section 10.

Insertion of new

Section 11A

Power not to

recover Goods

and Services

Tax not levied

as a result of

general

practice.

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

In the Principal Act, for Section 20, the following section shall be

substituted, namely:-

“20. (1) any office of the supplier goods or services or both which

receives tax invoices towards the receipt of input services, including

invoices in respect of services liable to tax under sub-section (3) or

sub-section (4) of Section 9, for or on behalf of distinct persons referred

to in Section 25, shall be required to be registered as Input Service

Distributor under clause (viii) of Section 24 and shall distribute the input

tax credit in respect of such invoices.

(2)

The input service distributor shall distribute the credit of state tax or

integrated tax charged on invoices received by him, including the credit

of state or integrated in respect of services subject to levy of tax under

sub-section (3) or sub-section (4) of Section 9 paid by a distinct person

registered in the same State as the said Input Service Distributor, in

such manner, within such time and subject to such restriction and

conditions as may be prescribed.

(3)

The credit of state tax shall be distributed as state tax or integrated tax

and integrated tax as integrated tax or state tax, by way of issue of a

document containing the amount of input tax credit, in such manner as

may be prescribed”.

10. In the Principal Act, in Section 21, after the words and figures “Section 73

or Section 74”, the words, figures and letter “or Section 74A” shall be

inserted.

11. In the Principal Act, in Section 30,in sub-section (2), after the proviso,

the following proviso shall be inserted, namely: -

“Provided further that such revocation of cancellation of registration

shall be subject to such conditions and restrictions, as may be prescribed”.

12. In the Principal Act, in Section 31,--

(a)

in sub-section (3), in clause (f), after the words and figure "of Section 9

shall", the words”, within the period as may be prescribed," shall be

inserted;

(b)

after clause (g), the following Explanation shall be inserted, namely:-

‘Explanation. -For the purposes of clause (f), the expression “supplier

who is not registered" shall include the supplier who is registered solely

for the purpose of deduction of tax under Section 51’.

13.

In the Principal Act, in Section 35, in sub-section (6), after the words

and figures “Section 73 or Section 74”, the words, figures and letter “or

Section 74A” shall be inserted.

14.

In the Principal Act, in Section 39, in sub-section (3), the following

sub-section shall be substituted, namely:-

“(3) Every registered person required to deduct tax at source under

Section 51 shall electronically furnish a return for every calendar month

of the deductions made during the month in such form and manner and

within such time as may be prescribed:

Provided that the said registered person shall furnish a return for

every calendar month whether or not any deductions have been made

during the said month”.

15.

In the Principal Act, in Section 49, in sub-section (8), in clause (c), after

the words and figures “Section 73 or Section 74”, the words, figures and

letter “or Section 74A” shall be inserted.

16.

In the Principal Act, in Section 50, in sub-section (1), in the proviso, after

the words and figures “Section 73 or Section 74”, the words, figures and

letter “or Section 74A” shall be inserted.

17.

In the Principal Act, in Section 51, in sub-section (7), after the words

and figures “Section 73 or Section 74”, the words, figures and letter “or

Section 74A” shall be inserted.

18. In the Principal Act, in Section 54,-

(a)

in sub-section (3), the Second proviso shall be omitted;

Amendment

of Section 30.

Amendment

of Section 31.

Amendment

of Section 35.

Amendment

of Section 39.

Amendment

of Section 49.

Amendment

of Section 50.

Amendment

of Section 51.

Amendment

of Section 54.

Substitution of

Section 20.

Manner of

distribution of

credit by Input

Service

Distributor

Amendment

of Section 21.

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

(b)

after sub-section (14) and before the Explanation, the following

sub-Section shall be inserted, namely:-

“(15) Notwithstanding anything contained in this Section, no

refund of unutilised input tax credit on account of zero rated supply

of goods or of integrated tax paid on account of zero rated supply of

goods shall be allowed where such zero rated supply of goods is

subjected to export duty”.

19.

In the Principal Act, in Section 61, in sub-section (3), after the words

and figures “Section 73 or Section 74”, the words, figures and letter

“or Section 74A” shall be inserted.

20.

In the Principal Act, in Section 62, in sub-section (1), after the words

and figures “Section 73 or Section 74”, the words, figures and letter

“or Section 74A" shall be inserted.

21.

In the Principal Act, in Section 63, after the words and figures “Section 73

or Section 74”, the words, figures and letter “or Section 74A” shall be

inserted.

22.

In the Principal Act, in Section 64, in sub-section (2), after the words

Section74A” shall be inserted.

23.

In the Principal Act, in Section 65, in sub-section (7), after the words

and figures “Section 73 or section 74”, the words, figures and letter

“or Section 74A” shall be inserted.

24.

In the Principal Act, in section 66, in sub-section (6), after the words

and figures “Section 73 or Section 74”, the words, figures and letter

“or Section 74A” shall be inserted.

25.

In the Principal Act, in Section 70, after sub-section (1), the following

sub-section shall be inserted, namely:-

“(1A) All persons summoned under sub-section (1) shall be bound

to attend, either in person or by an authorised representative, as such

officer may direct, and the person so appearing shall state the truth

during examination or make statements or produce such documents

and other things as may be required”.

26.

In the Principal Act, in Section 73,-

(i)

in the marginal heading, after the words “Determination of tax”,

the words and figures “pertaining to the period up to Financial

Year 2023-24”, shall be inserted;

(ii)

after sub-section (11), the following sub-section shall be inserted,

namely:-

“(12) The provisions of this section shall be applicable for

determination of tax pertaining to the period up to Financial

Year 2023-24”.

27.

In the Principal Act, in Section 74,-

(i)

in the marginal heading, after the words “Determination of tax”,

the words and figures”, pertaining to the period up to Financial

Year 2023-24”, shall be inserted ;

(ii)

after sub-section (11) and before Explanation 1, the following

sub-section shall be inserted, namely :-

“(12) The provisions of this section shall be applicable

for determination of tax pertaining to the period up to Financial

Year 2023-24”.

(iii)

the Explanation 2 shall be omitted.

28.

In the Principal Act, after Section 74, the following section shall be

inserted, namely:-

“74A. (1) Where it appears to the proper officer that any tax has not

been paid or short paid or erroneously refunded, or where input tax credit

has been wrongly availed or utilised, he shall serve notice on the person

chargeable with tax which has not been so paid or which has been so

short paid or to whom the refund has erroneously been made, or who

has wrongly availed or utilised input tax credit, requiring him to show

cause as to why he should not pay the amount specified in the notice

along with interest payable thereon under Section 50 and a penalty

leviable under the provisions of this Act or the rules made thereunder:

Amendment

of Section 66.

Amendment

of Section 70.

Amendment

of Section 74.

Determination

of tax not paid

or short paid or

erroneously

refunded or

input tax credit

wrongly availed

or utilised for

any reason

pertaining to

Financial Year

2024-25

onward.

Insertion of new

Section 74A

Amendment

of Section 73.

Amendment

of Section 61.

Amendment

of Section 62.

Amendment

of Section 63.

Amendment

of Section 64.

Amendment

of Section 65.

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

Provided that no notice shall be issued, if the tax which has not

been paid or short paid or erroneously refunded or where input tax credit

has been wrongly availed or utilised in a financial year is less than one

thousand rupees.

(2)

The proper officer shall issue the notice under sub-section (1) within

forty-two months from the due date for furnishing of annual return

for the financial year to which the tax not paid or short paid or

input tax credit wrongly availed or utilised relates to or within

forty-two months from the date of erroneous refund.

(3)

Where a notice has been issued for any period under sub-section

(1), the proper officer may serve a statement, containing the details

of tax not paid or short paid or erroneously refunded or input tax

credit wrongly availed or utilised for such periods other than those

covered under sub-section (1), on the person chargeable with tax.

(4)

The service of such statement shall be deemed to be service of

notice on such person under sub-section (1), subject to the

condition that the grounds relied upon for such tax periods other

than those covered under sub-section (1) are the same as are

mentioned in the earlier notice.

(5)

The penalty in case where any tax which has not been paid or

short paid or erroneously refunded, or where input tax credit has

been wrongly availed or utilised,-

(i)

for any reason, other than the reason of fraud or any

wilful-misstatement or suppression of facts to evade tax, shall

be equivalent to ten percent of tax due from such person or

ten thousand rupees, whichever is higher;

(ii)

for the reason of fraud or any wilful-misstatement or

suppression of facts to evade tax shall be equivalent to the

tax due from such person.

(6)

The proper officer shall, after considering the representation, if any,

made by the person chargeable with tax, determine the amount of

tax, interest and penalty due from such person and issue an order.

(7)

The proper officer shall issue the order under sub-section (6) within

twelve months from the date of issuance of notice specified in

sub-section (2):

Provided that where the proper officer is not able to issue the order

within the specified period, the Commissioner, or an officer authorised

by the Commissioner senior in rank to the proper officer but not below

the rank of Joint Commissioner of State Tax, may, having regard to the

reasons for delay in issuance of the order under sub-section (6), to be

recorded in writing, before the expiry of the specified period, extend the

said period further by a maximum of six months.

(8)

The person chargeable with tax where any tax has not been paid or

short paid or erroneously refunded, or where input tax credit has

been wrongly availed or utilised for any reason, other than the

reason of fraud or any wilful-misstatement or suppression of facts

to evade tax, may,-

(i)

before service or notice under sub-section (1), pay the amount

of tax along with interest payable under Section 50 of such

tax on the basis of his own ascertainment of such tax or the

tax as ascertained by the proper officer and inform the proper

officer in writing of such payment, and the proper officer, on

receipt of such information shall not-serve any notice under

sub-section (1) or the statement under sub-section (3), as

the case may be, in respect of the tax so paid or any penalty

payable under the provisions of this Act or the rules made

thereunder;

(ii)

pay the said tax along with interest payable under Section 50

within sixty days of issue of show cause notice, and on doing

so, no penalty shall be payable and all proceedings in respect

of the said notice shall be deemed to be concluded.

(9)

The person chargeable with tax, where any tax has not been paid or

short paid or erroneously refunded or where input tax credit has been

wrongly availed or utilised by reason of fraud, or any wilful-misstatement

or suppression of facts to evade tax, may,-

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

(i)

before service of notice under sub-section (1), pay the amount of

tax along with interest payable under Section 50 and a penalty

equivalent to fifteen percent of such tax on the basis of his own

ascertainment of such tax or the tax as ascertained by the proper

officer and inform the proper officer in writing of such payment,

and the proper officer, on receipt of such information, shall not

serve any notice under sub-section (1), in respect of the tax so

paid or any penalty payable under the provisions of this Act or the

rules made thereunder;

(ii)

pay the said tax along with interest payable under Section 50 and

a penalty equivalent to twenty-five percent of such tax within sixty

days of issue of the notice, and on doing so, all proceedings in

respect of the said notice shall be deemed to be concluded;

(iii) pay the tax along with interest payable thereon under Section 50

and a penalty equivalent to fifty percent of such tax within sixty

days of communication of the order, and on doing so, all

proceedings in respect of the said notice shall be deemed to be

concluded.

(10) Where the proper officer is of the opinion that the amount paid under

clause (i) of sub-section (8) or clause (i) of sub-section (9) falls short of

the amount actually payable, he shall proceed to issue the notice as

provided for in sub-section (1) in respect of such amount which falls

short of the amount actually payable.

(11) Notwithstanding anything contained in clause (i) or clause (ii) of

sub-section (8), penalty under clause (i) of sub-section (5) shall be

payable where any amount of self-assessed tax or any amount collected

as tax has not been paid within a period of thirty days from the due date

of payment of such tax.

(12) The provisions of this section shall be applicable for determination of tax

pertaining to the Financial Year 2024-25 onwards.

Explanation 1.- For the purposes of this Section,-

(i)

the expression “all proceedings in respect of the said notice” shall

not include proceedings under Section 132;

(ii)

where the notice under the same proceedings is issued to the

main person liable to pay tax and some other persons and such

proceedings against the main person have been concluded under

this section, the proceedings against all the persons liable to pay

penalty under Sections 122 and 125 are deemed to be concluded.

Explanation 2.--For the purposes of this Act, the expression “suppression”

shall mean non-declaration of facts or information which a taxable person is

required to declare in the return, statement, report or any other document

furnished under this Act or the rules made thereunder, or failure to furnish any

information on being asked for, in writing, by the proper officer.

29. In the Principal Act, in Section 75,-

(a)

in sub-section (1), after the word and figures “Section 74”, the

words, brackets, figures and letter “or sub-sections (2) and (7) of

Section 74A” shall be inserted;

(b)

after sub-section (2), the following sub-section shall be inserted,

namely:-

“(2A) Where any Appellate Authority or Appellate Tribunal or

court concludes that the penalty under clause (ii) of sub-section

(5) of Section 74A is not sustainable for the reason that the charges

of fraud or any wilful-misstatement or suppression of facts to evade

tax has not been established against the person to whom the

notice was issued, the penalty shall be payable by such person,

under clause (i) of sub-section (5) of Section 74A”;

(c)

for sub-section (10), the following sub-section shall be substituted,

namely:-

“(10) The adjudication proceedings shall be deemed to be concluded, if

the order is not issued within the period specified in sub-section (10)

of Section 73 or in sub-section (10) of Section 74 or in

sub-section (7) of Section 74A”.

(d)

in sub-section (11), after the word and figures “Section 74”, the words,

brackets, figures and letter “or sub-section (7) of Section 74A” shall

be inserted;

Amendment

of Section 75.

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

(e)

in sub-section (12), after the words and figures “Section 73 or

Section 74”, the words, figures and letter “or Section 74A” shall

be inserted;

(f)

in sub-section (13), after the words and figures “Section 73 or

Section 74”, the words, figures and letter “or Section 74A” shall be

inserted.

30.

In the Principal Act, in Section 104, in sub-section (1), in the Explanation,

after the word and figures “Section 74”, the words, brackets, figures and

letter “or sub-section (2) and (7) of Section 74A” shall be inserted.

31. In the Principal Act, in Section 107, -

(a)

in sub-section (6), in clause (b), for the word “twenty-five”, the

word "twenty" shall be substituted;

(b)

in sub-section (11), in the second proviso, after the words and

figures “Section 73 or Section 74”, the words, figures and letter “or

Section 74A” shall be inserted.

32. In the Principal Act, in Section 109, --

(a) in sub-section (1), after the words “Revisional Authority”, the words”,

or for conducting an examination or adjudicating the cases referred

to in sub-section (2) of Section 171, if so notified under the said

section" shall be inserted;

33. In the Principal Act, in Section 112, -

(a) with effect from the 1st day of August, 2024, in sub-section (1),

after the words “from the date on which the order sought to be

appealed against is communicated to the person preferring the

appeal”, the words”, or the date, as may be notified by the

Government, on the recommendations of the Council, for filing

appeal before the Appellate Tribunal under this Act, whichever is

later”, shall be inserted;

(b) with effect from the 1st day of August, 2024, in sub-section (3),

after the words “from the date on which the said order has been

passed”, the words”, or the date, as may be notified by the

Government, on the recommendations of the Council, for the

purpose of filing application before the Appellate Tribunal under

this Act, whichever is later”, shall be inserted;

expiry of the period referred to in sub-section (1)”, the words,

brackets and figure “or permit the filing of an application within

three months after the expiry of the period referred to in sub-section

(3)” shall be inserted;

(d)

in sub-section (8), in clause (b),-

(i)

for the words “twenty percent”, the words “ten percent” shall

be substituted;

(ii)

for the words “fifty crore rupees”, the words “twenty crore

rupees” shall be substituted.

34.

In the Principal Act, in Section 122, with effect from the 1st day of

October, 2023, in sub-section (1B), for the words “Any electronic

commerce operator who”, the words and figures “Any electronic commerce

operator, who is liable to collect tax at source under Section 52”, shall be

substituted.

35.

In the Principal Act, after Section 122, the following Section shall be

inserted, namely: -

“122A. (1) Notwithstanding anything contained in this Act, where

any person, who is engaged in the manufacture of goods in respect of

which any special procedure relating to registration of machines has

been notified under Section 148, acts in contravention of the said special

procedure, he shall, in addition to any penalty that is paid or is payable

by him under Chapter XV or any other provision of this Chapter, be liable

to pay a penalty equal to an amount of one lakh rupees for every machines

not so registered.

Amendment of

Section 109.

Amendment of

Section 112.

Amendment of

Section 122.

Insertion new

Section 122A.

Penalty for

failure to

machines

used in

manufacture of

goods as per

special

procedure

Amendment of

Section 104.

Amendment of

Section 107.

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

(2)

In addition to the penalty under sub-section (1),every machine not

so registered shall be liable to be liable for seizure and confiscation:

Provided that such machine shall not be confiscated where-

(a)

The penalty so imposed is paid, and

(b)

The registration of such machine is made in accordance with the

special procedure within three days of the receipt of communication

of the order of penalty.

36.

In the Principal Act, in Section 127, after the words and figures “Section

73 or Section 74”, the words, figures and letter “or Section 74A” shall be

inserted.

37.

In the Principal Act, after Section 128, the following section shall be

inserted, namely: -

“128A. (1) Notwithstanding anything to the contrary contained in

this Act, where any amount of tax is payable by a person chargeable

with tax in accordance with,-

(a)

a notice issued under sub-section (1) of Section 73 or a statement

issued under sub-section (3) of Section 73, and where no order

under sub-section (9) of Section 73 has been issued; or

(b)

an order passed under sub-section (9) of Section 73, and where no

order under sub-section (11) of Section 107 or sub-section (1) of

Section 108 has been passed; or

(c)

an order passed under sub-section (11) of Section 107 or

sub-section (1) of Section 108, and where no order under

sub-section (1) of Section 113 has been passed, pertaining to the

period from 1st July, 2017 to 31st March, 2020, or a part thereof,

and the said person pays the full amount of tax payable as per the

notice or statement or the order referred to in clause (a), clause (b)

or clause (c), as the case may be, on or before the date, as may be

notified by the Government on the recommendations of the Council,

no interest under Section 50 and penalty under this Act, shall be

payable and all the proceedings in respect of the said notice or

order or statement, as the case may be, shall be deemed to be

concluded, subject to such conditions as may be prescribed:

Provided that where a notice has been issued under

sub-section (1) of Section 74, and an order is passed or required

to be passed by the proper officer in pursuance of the direction of

the Appellate Authority or Appellate Tribunal or a court in accordance

with the provisions of sub-section (2) of Section 75, the said notice

or order shall be considered to be a notice or order, as the case

may be, referred to in clause (a) or clause (b) of this sub-section:

Provided further that the conclusion of the proceedings under

this sub-section, in cases where an application is filed under

sub-section (3) of Section 107 or under sub-section (3) of Section 112

or an appeal is filed by an officer of state tax under sub-section (1)

of Section 117 or under sub-section (1) of Section 118 or where

any proceedings are initiated under sub-section (1) of Section 108,

against an order referred to in clause (b) or clause (c) or against

the directions of the Appellate Authority or the Appellate Tribunal

or the court referred to in the first proviso, shall be subject to the

condition that the said person pays the additional amount of tax

payable, if any, in accordance with the order of the Appellate

Authority or the Appellate Tribunal or the court or the Revisional

Authority, as the case may be, within three months from the date

of the said order:

Provided also that where such interest and penalty has already

been paid, no refund of the same shall be available.

(2)

Nothing contained in sub-section (1) shall be applicable in respect

of any amount payable by the person on account of erroneous

refund.

(3) Nothing contained in sub-section (1) shall be applicable in respect

of cases where an appeal or writ petition filed by the said person

is pending before Appellate Authority or Appellate Tribunal or a

court, as the case may be, and has not been withdrawn by the

said person on or before the date notified under sub-section (1).

Waiver of

interest or

penalty or

both relating

to demands

raised under

Section 73,

for certain

tax periods.

Amendment of

Section 127.

Insertion of new

Section 128A.

The Arunachal Pradesh Extraordinary Gazette, April 7, 2025

(4)

Notwithstanding anything contained in this Act, where any amount

specified under sub-section (1) has been paid and the proceedings

are deemed to be concluded under the said sub-section, no appeal

under sub-section (1) of Section 107 or sub-section (1) of Section 112

shall lie against an order referred to in clause (b) or clause (c) of

sub-section (1), as the case may be”.

38.

In the Principal Act, in Section 140,with effect from the 1st day of

July, 2017, in sub-section (7), for the words “even if the invoices relating

to such services are received on or after the appointed day”, the words

“whether the invoices relating to such services are received prior to, on

or after, the appointed day” shall be substituted.

39. In the Principal Act, in Section 171,-

(a)

in sub-section (2), the following proviso and Explanation shall be

inserted, namely:-

‘Provided that the Government may by notification, on the

recommendations of the Council, specify the date from which the

said Authority shall not accept any request for examination as to

whether input tax credits availed by any registered person or the

reduction in the tax rate have actually resulted in a commensurate

reduction in the price of the goods or services or both supplied by him.

Explanation.-For the purposes of this sub-section, “request for

examination” shall mean the written application filed by an applicant requesting

for examination as to whether input tax credits availed by any registered person

or the reduction in the tax rate have actually resulted in a commensurate

reduction in the price of the goods or services or both supplied by him.’;

(b)

the Explanation shall be renumbered as Explanation 1 thereof,

and after Explanation 1 as so renumbered, the Explanation shall

be inserted, namely:-

‘Explanation 2.- For the purposes of this section, the expression

“Authority” shall include the “Appellate Tribunal”.

40.

In the Principal Act, in Schedule III, after paragraph 8 and before

Explanation 1, the following paragraphs shall be inserted, namely:-

“9.

Activity of apportionment of co-insurance premium by the lead

insurer to the co-insurer for the insurance services jointly supplied

by the lead insurer and the co-insurer to the insured in co-insurance

agreements, subject to the condition that the lead insurer pays

the central tax, the State tax, the Union territory tax and the

integrated tax on the entire amount of premium paid by the insured.

10. Services by insurer to the reinsurer for which ceding commission

or the reinsurance commission is deducted from reinsurance

premium paid by the insurer to the reinsurer, subject to the

condition that the central tax, the State tax, the Union territory tax

and the integrated tax is paid by the reinsurer on the gross

reinsurance premium payable by the insurer to the reinsurer,

inclusive of the said ceding commission or the reinsurance

commission”.

41.

No refund shall be made of all the tax paid or the input tax credit reversed,

which would not have been so paid, or not reversed, had Section 118

been in force at all material times.

Yashpal Garg, IAS

Commissioner to the

Government of Arunachal Pradesh,

Itanagar.

Amendment of

Section 140.

Amendment of

Section 171.

Amendment of

Schedule-III.

No refund of

tax paid or

input tax

credit

reversed.

————

Published and printed by Directorate of Printing and Stationery, Naharlagun—209/2025-DoP-250+Secy. (LA)-50+ Commr. (Law)-

50+Secy. (Tax, Excise & Narcotics)-50-4-2025