THE ARUNACHAL PRADESH GOODS AND SERVICES TAX

(AMENDMENT) ACT, 2026

(Act No. 9 of 2026)

Act

further to amend the Arunachal Pradesh Goods and Services Tax Act, 2017

(Act No. 7 of 2017).

Preamble : 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-Seventh

Year of the Republic of India as follows:-

Short title, extent and commencement : (1) This Act may be called the Arunachal

Pradesh Goods and Services Tax (Amendment) Act, 2026.

(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.

Amendment of Section 2 : In the principal Act, 2017 (hereinafter referred as the Arunachal

Pradesh Goods and Services Tax Act), in Section 2,–

(i)

in clause (61), after the word and figure “Section 9”, the words, brackets and figures

“of this Act or under sub-section (3) or sub-section (4) of Section 5 of the Integrated

Goods and Services Tax Act, 2017” shall be inserted with effect from the 1st day of

April, 2025;

(ii)

in clause (69),-

(a)

in sub-clause (c), after the words “management of a municipal”, the word “fund”

shall be inserted;

(b)

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

(ii)

‘Explanation.- For the purposes of this sub-clause-

(a)

“local fund” means any fund under the control or management of an authority

of a local self-Government established for discharging civic functions in

relation to a Panchayat area and vested by law with the powers to levy,

collect and appropriate any tax, duty, toll, cess or fee, by whatever name

called;

The Arunachal Pradesh Gazette

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 125, Vol. XXXIII, Naharlagun, Friday, May 8, 2026, Vaisakha 18, 1948 (Saka)

GOVERNMENT OF ARUNACHAL PRADESH

LAW, LEGISLATIVE AND JUSTICE DEPARTMENT

CIVIL SECRETARIAT

ITANAGAR

————

NOTIFICATION

The 7th May, 2026

No. LAW/LEGN-1/2026.—The following Act of the Arunachal Pradesh Legislative Assembly

which was passed in the Sixth 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 5th May, 2026)

2 The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

(b)

“municipal fund” means any fund under the control or management of an

authority of a local self-Government established for discharging civic

functions in relation to a Metropolitan area or Municipal area and vested by

law with the powers to levy, collect and appropriate any tax, duty, toll,

cess or fee, by whatever name called;

After clause (116), the following clause shall be inserted, namely:

‘(116A) “unique identification marking” means the unique identification

marking referred to in clause (b) of sub-section (2) of Section 148A and

includes a digital stamp, digital mark or any other similar marking, which

is unique, secure and non-removable;’.

Amendment of Section 12 : In Section 12 of the Arunachal Pradesh Goods and Services

Tax Act, 2017 sub-section (4) shall be omitted.

Amendment of Section 13 : In Section 13 of the Arunachal Pradesh Goods and Services

Tax Act, 2017 sub-section (4) shall be omitted.

Amendment of Section 17 : In Section 17 of the Arunachal Pradesh Goods and Services

Tax Act, 2017 in sub-section (5), in clause (d),-

(i)

For the words “plant or machinery”, the words “plant and machinery” shall be

substituted and shall be deemed to have been substituted with effect from the

1st day of July, 2017;

(ii)

the Explanation shall be numbered as Explanation 1 thereof, and after Explanation 1

as so numbered, the following Explanation shall be inserted, namely:-

‘Explanation 2.––For the purposes of clause (d), it is hereby clarified that

notwithstanding anything to the contrary contained in any judgment, decree or order

of any court, tribunal, or other authority, any reference to “plant or machinery” shall

be construed and shall always be deemed to have been construed as a reference to

“plant and machinery”.

Amendment of Section 20 : In Section 20 of the Arunachal Pradesh Goods and Services

Tax Act, 2017 with effect from the 1st day of April, 2025,-

(i)

in sub-section (1), after the word and figure “Section 9”, the words, brackets and

figures “of this Act or under sub-section (3) or sub-section (4) of Section 5 of the Integrated

Goods and Services Tax Act, 2017” shall be inserted;

(ii)

in sub-section (2), after the word and figure “Section 9”, the words, brackets and

figures “of this Act or under sub-section (3) or sub-section (4) of Section 5 of the Integrated

Goods and Services Tax Act, 2017,” shall be inserted.

Amendment of Section 34 : In Section 34 of the Arunachal Pradesh Goods and Services

Tax Act, 2017 in sub-section (2), for the proviso, the following proviso shall be substituted,

namely:-

“Provided that no reduction in output tax liability of the supplier shall be permitted,

if the-

(i)

Input tax credit as is attributable to such a credit note, if availed, has not been

reversed by the recipient, where such recipient is a registered person; or

(ii)

Incidence of tax on such supply has been passed on to any other person, in other

cases”.

Amendment of Section 38 : In Section 38 of the Arunachal Pradesh Goods and Services

Tax Act, 2017-

(i)

In sub-section (1), for the words “an auto-generated statement”, the words “a statement”

shall be substituted;

(ii)

In sub-section (2), -

(a)

for the words “auto-generated statement under”, the words “statement referred

in” shall be substituted;

(b)

in clause (a), the word “and” shall be omitted;

(c)

in clause (b), after the words “by the recipient” the word “including” shall be

inserted;

(d)

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

“(c) such other details as may be prescribed”.

Amendment of Section 39: In Section 39 of the Arunachal Pradesh Goods and Services

Tax Act, 2017 in sub-section (1), for the words “and within such time”, the words “within

such time, and subject to such conditions and restrictions” shall be substituted.

The Arunachal Pradesh Extraordinary Gazette, May, 8 2026 3

10.

Amendment of Section 107 : In Section 107 of the Arunachal Pradesh Goods and

Services Tax Act, 2017 in sub-section (6), for the proviso, the following proviso shall be

substituted, namely:––

“Provided that in case of any order demanding penalty without involving demand of

any tax, no appeal shall be filed against such order unless a sum equal to ten percent of

the said penalty has been paid by the appellant”.

11.

Amendment of Section 112 : In Section 112 of the Arunachal Pradesh Goods and

Services Tax Act, 2017 in sub-section (8), the following proviso shall be inserted, namely:-

“Provided that in case of any order demanding penalty without involving demand of

any tax, no appeal shall be filed against such order unless a sum equal to ten percent

of the said penalty, in addition to the amount payable under the proviso to sub-section (6)

of Section 107 has been paid by the appellant”.

12.

Insertion of new Section 122B : After Section 122A of the Arunachal Pradesh Goods

and Services Tax Act, 2017 the following Section shall be inserted, namely:-

Penalty for failure to comply with track and trace mechanism : “122B

Notwithstanding anything contained in this Act, where any person referred to in clause (b)

of sub-section (1) of Section 148A acts in contravention of the provisions of the said

Section, he shall, in addition to any penalty under Chapter-XV or the provisions of this

Chapter, be liable to pay a penalty equal to an amount of one lakh rupees or ten percent

of the tax payable on such goods, whichever is higher”.

13.

Insertion of new Section 148A : After Section 148 of the Arunachal Pradesh Goods

and Services Tax Act, 2017 the following Section shall be inserted, namely:-

Track and trace mechanism for certain goods : “148A. (1) The Government may, on

the recommendations of the Council, by notification, specify,-

(a)

the goods;

(b)

persons or class of persons who are in possession or deal with such goods, to which

the provisions of this Section shall apply.

(2)

The Government may, in respect of the goods referred to in clause (a) of

sub-section (1),––

(a)

provide a system for enabling affixation of unique identification marking and for

electronic storage and access of information contained therein, through such

persons, as may be prescribed; and

(b)

prescribe the unique identification marking for such goods, including the

information to be recorded therein.

(3)

The persons referred to in sub-section(1), shall,––

(a)

affix on the said goods or packages thereof, a unique identification marking,

containing such information and in such manner;

(b)

furnish such information and details within such time and maintain such records

or documents, in such form and manner;

(c)

furnish details of the machinery installed in the place of business of manufacture

of such goods, including the identification, capacity, duration of operation and

such other details or information, within such time and in such form and manner;

(d)

pay such amount in relation other system referred to in sub-section (2), as may

be prescribed.”.

14.

Amendment of Scheduled III : In Schedule III of the Arunachal Pradesh Goods and

Services Tax Act,2017––

(i)

In paragraph 8, after clause (a), the following clause shall be inserted and shall be

deemed to have been inserted with effect from the 1st day of July, 2017, namely:–

“(aa)

Supply of goods warehoused in a Special Economic Zone or in a Free Trade

Warehousing Zone to any person before clearance for exports or to the Domestic

Tariff Area”;

(ii)

in Explanation 2, after the words “For the purposes of”, the words, brackets and

letter “clause (a) of” shall be inserted and shall be deemed to have been inserted with

effect from the 1st day of July, 2017;

(iii)

After Explanation 2, the following explanation shall be inserted and shall be deemed

to have been inserted with effect from the 1st day of July, 2017, namely:-

“Explanation 3.––For the purposes of clause (aa) of paragraph 8, the expressions

“Special Economic Zone”, “Free Trade Warehousing Zone” and “Domestic Tariff

Area” shall have the same meanings respectively as assigned to them in Section 2

of the Special Economic Zones Act, 2005”.

4 The Arunachal Pradesh Extraordinary Gazette, May 8, 2026

————

15.

No refund of tax collected : No refund shall be made of all such tax which has been

collected, but which would not have been so collected, had Section 14 been in force at all

material times.

16.

Repeal and saving : The Arunachal Pradesh Goods and Services Tax (Amendment)

Ordinance, 2025 is hereby repealed.

Notwithstanding such repeal, any action taken under the said Ordinance shall be

deemed to have been validly taken under the corresponding provisions of this Act.

The above Bill has been passed by the Legislative Assembly of Arunachal Pradesh on

9th March, 2026 in its Sixth Session of Eight Legislative Assembly.

Saugat Biswas, IAS

Commissioner to the

Government of Arunachal Pradesh,

Itanagar.

Published and printed by Directorate of Printing and Stationery, Naharlagun.—285/2026-DoP-250+Secy.(LA)-

20+Commissioner(Law)-20+Commissioner(Tax, Excise and Narcotics)-20-5-2026.