THE ODISHA GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018

TABLE OF CONTENTS

PREAMBLE :

SECTIONS :

1. Short title and commencement.

2. Amendment of Section 2.

3. Amendment of Section 7.

4. Amendment of Section 9.

5. Amendment of Section 10.

6. Amendment of Section 12.

7. Amendment of Section 13.

8. Amendment of Section 16.

9. Amendment of Section 17.

10. Amendment of Section 20

11. Amendment of Section 22.

12. Amendment of Section 24.

13. Amendment of Section 25.

14. Amendment of Section 29.

15. Amendment of Section 34.

16. Amendment of Section 35.

17. Amendment of Section 39.

18. Insertion of new Section 43 A.

19. Amendment of Section 48.

20. Amendment of Section 49.

21. Insertion of new Section 49 A and 49 B

22. Amendment of Section 52.

23. Amendment of Section 54.

24. Amendment of Section 79.

25. Amendment of Section 107.

26. Amendment of Section 112.

27. Amendment of Section 129.

28. Amendment of Section 143.

29. Amendment of Section 166.

30. Amendment of Schedule I.

31. Amendment of Schedule II.

32. Amendment of Schedule III.

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 1961, CUTTACK, TUESDAY, OCTOBER 23, 2018 / KARTIKA 1, 1940

LAW DEPARTMENT

NOTIFICATION

The 23rd October, 2018

No.11635–Legis-38/18 /L.—The following Act of the Odisha Legislative Assembly

having been assented to by the Governor on the 22nd October, 2018 is hereby published

for general information.

ODISHA ACT 18 OF 2018

THE ODISHA GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018

AN ACT TO AMEND THE ODISHA GOODS AND SERVICES TAX ACT, 2017.

BE it enacted by the Legislature of the State of Odisha in the Sixty-ninth Year of the

Republic of India as follows:—

1. (1) This Act may be called the Odisha Goods and Services Tax (Amendment) Act, 2018.

(2) Save as otherwise provided, the provisions of this Act shall come into force on such

date as the State Government may, by notification, 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.

2. In section 2 of the Odisha Goods and Services Tax Act, 2017(hereinafter referred to

as the principal Act),––

(a) in clause (4),for the words “the Appellate Authority and the Appellate Tribunal”,

the words, brackets and figures “the Appellate Authority, the Appellate Tribunal and

the Authority referred to in sub-section (2) of section 171” shall be substituted;

Short title and

commencement.

Amendment

of section 2.

Odisha Act

7 of 2017

(b) in clause(16) for the words “Central Board of Excise and

Customs”, the words “Central Board of Indirect Taxes and

Customs” shall be substituted;

substituted, namely:—

“(h) activities of a race club including by way of totalisator or a

license to book maker or activities of a licensed book maker in

such club; and”;

(d) clause (18) shall be omitted;

(e) in clause (35), for the word, brackets and letter “clause (c)”, the

word, brackets and letter “clause (b)” shall be substituted;

(f) in clause (69), in sub-clause (f), after the word and figures “article

371”, the words, figures and letter “and article 371J” shall be

inserted;

(g) in clause (102), the following Explanation shall be inserted,

namely:––

‘Explanation.––For the removal of doubts, it is hereby clarified that

the expression “services” includes facilitating or arranging

transactions in securities;’.

3. In section 7 of the principal Act, with effect from the 1st day of July,

2017,––

(a) in sub-section (1), ––

(i) in clause (b), after the words “or furtherance of business;”, the

word “and” shall be inserted and shall always be deemed to

have been inserted;

(ii) in clause (c), after the words “a consideration”, the word “and”

shall be omitted and shall always be deemed to have been

omitted;

(iii) clause (d) shall be omitted and shall always be deemed to

have been omitted;

(b) after sub-section (1), the following sub-section shall be inserted

and shall always be deemed to have been inserted, namely:––

“(1A) where certain activities or transactions constitute a

supply in accordance with the provisions of sub-section (1), they

shall be treated either as supply of goods or supply of services

as referred to in Schedule II.”;

(1) and(2)”, the words, brackets, figures and letter “sub-sections (1),

(1A) and (2)” shall be substituted.

4. In section 9 of the principal Act, for sub-section (4), the following sub-

section shall be substituted, namely:––

“(4) The Government may, on the recommendations of the Council, by

notification, specify a class of registered persons who shall, in respect of

supply of specified categories of goods or services or both received from an

unregistered supplier, pay the tax on reverse charge basis as the recipient of

such supply of goods or services or both, and all the provisions of this Act

shall apply to such recipient as if he is the person liable for paying the tax in

relation to such supply of goods or services or both.”.

Amendment

of section 9 .

Amendment

of section 7.

5. In section 10 of the principal Act,—

(a) in sub-section (1), —

(i) for the words “in lieu of the tax payable by him, an amount

calculated at such rate”, the words, brackets and figures “in lieu of

the tax payable by him under sub-section (1) of section 9, an

amount of tax calculated at such rate” shall be substituted;

(ii) in the proviso, for the words “one crore rupees”, the words

“one crore and fifty lakh rupees” shall be substituted;

(iii) after the proviso, the following proviso shall be inserted,

namely:–

“Provided further that a person who opts to pay tax under clause

(a) or clause (b) or clause (c) may supply services (other than

those referred to in clause (b) of paragraph 6 of Schedule II), of

value not exceeding ten per cent. of turnover in the State in

the preceding financial year or five lakh rupees, whichever is

higher.”;

(b) in sub-section (2), for clause (a), the following clause shall be

substituted, namely:––

“(a) save as provided in sub-section (1), he is not engaged in

the supply of services;”.

6. In section 12 of the principal Act, in sub-section (2), in clause (a), the

words, brackets and figure “sub-section (1) of” shall be omitted.

7. In section 13 of the principal Act, in sub-section (2), the words,

brackets and figure “sub-section (2) of” occurring at both the places, shall be

omitted.

8. In section 16 of the principal Act, in sub-section (2),––

(a) in clause (b), for the Explanation, the following Explanation shall be

substituted, namely:—

“Explanation.—For the purposes of this clause, it shall be

deemed that the registered person has received the goods or, as

the case may be, services––

(i) where the goods are delivered by the supplier to a recipient or

any other person on the direction of such registered person,

whether acting as an agent or otherwise, before or during

movement of goods, either by way of transfer of documents of title

to goods or otherwise;

(ii) where the services are provided by the supplier to any person

on the direction of and on account of such registered person.”;

(b) in clause (c), for the word and figures “section 41”, the words, figures

and letter “section 41 or section 43A” shall be substituted.

Amendment

of section 10.

Amendment

of section 12.

Amendment

of section 13.

Amendment

of section 16.

9. In section 17 of the principal Act,––

(a) in sub-section (3), the following Explanation shall be inserted,

namely:––

‘Explanation.—For the purposes of this sub-section, the

expression ‘‘value of exempt supply’’ shall not include the value of

activities or transactions specified in Schedule III, except those

specified in paragraph 5 of the said Schedule.’;

(b) in sub-section (5), for clauses (a) and (b), the following clauses shall

be substituted, namely:—

“(a) motor vehicles for transportation of persons having approved

seating capacity of not more than thirteen persons (including the

driver), except when they are used for making the following

taxable supplies, namely:—

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(aa) vessels and aircraft except when they are used––

(i) for making the following taxable supplies, namely:—

(A) further supply of such vessels or aircraft; or

(B) transportation of passengers; or

(D) imparting training on flying such aircraft;

(ii) for transportation of goods;

(ab) services of general insurance, servicing, repair and

maintenance in so far as they relate to motor vehicles, vessels

or aircraft referred to in clause (a) or clause (aa):

Provided that the input tax credit in respect of such

services shall be available—

(i) where the motor vehicles, vessels or aircraft referred to in

clause (a) or clause (aa) are used for the purposes specified

therein;

(ii) where received by a taxable person engaged—

(I) in the manufacture of such motor vehicles,

vessels or aircraft; or

(II) in the supply of general insurance services in

respect of such motor vehicles, vessels or aircraft

insured by him;

(b) the following supply of goods or services or both—

(i) food and beverages, outdoor catering, beauty treatment,

health services, cosmetic and plastic surgery, leasing, renting

or hiring of motor vehicles, vessels or aircraft referred to in

Amendment

of section 17.

clause (a) or clause (aa) except when used for the purposes

specified therein, life insurance and health insurance:

Provided that the input tax credit in respect of such

goods or services or both shall be available where an inward

supply of such goods or services or both is used by a

registered person for making an outward taxable supply of the

same category of goods or services or both or as an element of

a taxable composite or mixed supply;

(ii) membership of a club, health and fitness centre; and

(iii) travel benefits extended to employees on vacation such as

leave or home travel concession:

Provided that the input tax credit in respect of such

goods or services or both shall be available, where it is

obligatory for an employer to provide the same to its

employees under any law for the time being in force.”.

10. In section 20 of the principal Act, in the Explanation, in clause (c), for

the words and figures “under entry 84,”, the words, figures and letter “under

entries 84 and 92A” shall be substituted.

11. In section 22 of the principal Act,––

(a) in sub-section (1), after the proviso, the following proviso shall be

inserted, namely:—

“Provided further that where such person makes taxable supplies of

goods or services or both from a special category State in respect

of which the Central Government has enhanced the aggregate

turnover referred to in the first proviso, he shall be liable to be

registered if his aggregate turnover in a financial year exceeds the

amount equivalent to such enhanced turnover.";

(b) in the Explanation, in clause (iii), after the word “Constitution” the

words “except the State of Jammu and Kashmir and States of

Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim

and Uttarakhand” shall be inserted.

12. In section 24 of the principal Act, in clause (x), after the words

“commerce operator”, the words and figures “who is required to collect tax at

source under section 52” shall be inserted.

13. In section 25 of the principal Act,––

(a) in sub-section (1), after the proviso and before the Explanation, the

following proviso shall be inserted, namely:––

“Provided further that a person having a unit, as defined in the

Special Economic Zones Act, 2005, in a Special Economic Zone

or being a Special Economic Zone developer shall have to apply

for a separate registration, as distinct from his place of business

located outside the Special Economic Zone in the State.";

Amendment

of section 20.

Amendment

of section 22.

Amendment

of section 24.

Amendment

of section 25.

28 of 2005.

(b) in sub-section (2), for the proviso, the following proviso shall be

substituted, namely:––

"Provided that a person having multiple places of business in

the State may be granted a separate registration for each such

place of business, subject to such conditions as may be

prescribed.".

14. In section 29 of the principal Act,––

(a) in the marginal heading after the word “Cancellation”, the words “or

suspension” shall be inserted;

(b) in sub-section (1), after clause (c), the following proviso shall be

inserted, namely:—

“Provided that during pendency of the proceedings relating to

cancellation of registration filed by the registered person, the

registration may be suspended for such period and in such

manner as may be prescribed.”;

inserted, namely:—

“Provided further that during pendency of the proceedings

relating to cancellation of registration, the proper officer may

suspend the registration for such period and in such manner as

may be prescribed.”.

15. In section 34 of the principal Act,––

(a) in sub-section (1),––

(i) for the words “Where a tax invoice has”, the words “Where one

or more tax invoices have” shall be substituted;

(ii) for the words “a credit note”, the words “one or more credit

notes for supplies made in a financial year” shall be

substituted;

(b) in sub-section (3),––

(i) for the words “Where a tax invoice has”, the words “Where one

or more tax invoices have” shall be substituted;

(ii) for the words “a debit note”, the words “one or more debit

notes for supplies made in a financial year” shall be substituted.

16. In section 35 of the principal Act, in sub-section (5), the following

proviso shall be inserted, namely:—

“Provided that nothing contained in this sub-section shall apply

to any department of the Central Government or a State Government

or a local authority, whose books of account are subject to audit by the

Comptroller and Auditor-General of India or an auditor appointed for

auditing the accounts of local authorities under any law for the time

being in force.”.

Amendment

of section 29.

Amendment

of section 34.

Amendment

of section 35.

17. In section 39 of the principal Act,––

(a) in sub-section (1),––

(i) for the words “in such form and manner as may be prescribed”,

the words “in such form, manner and within such time as may

be prescribed” shall be substituted;

(ii) the words “on or before the twentieth day of the month

succeeding such calendar month or part thereof ” shall be

omitted;

(iii) the following proviso shall be inserted, namely:—

“Provided

that

the

Government

may,

the

recommendations of the Council, notify certain classes of

registered persons who shall furnish return for every quarter or

part thereof, subject to such conditions and safeguards as may be

specified therein.”;

(b) in sub-section (7), the following proviso shall be inserted,

namely:–

“Provided

that

the

Government

may,

the

recommendations of the Council, notify certain classes of

registered persons who shall pay to the Government the tax due

or part thereof as per the return on or before the last date on

which he is required to furnish such return, subject to such

conditions and safeguards as may be specified therein.”;

(i) for the words "in the return to be furnished for the month or

quarter during which such omission or incorrect particulars are

noticed", the words "in such form and manner as may be

prescribed" shall be substituted;

(ii) in the proviso, for the words “the end of the financial year”, the

words “the end of the financial year to which such details

pertain” shall be substituted.

18. After section 43 of the principal Act, the following section shall be

inserted, namely:—

43A. (1) Notwithstanding anything contained in sub-section (2) of section

16,section 37 or section 38, every registered person shall in the returns

furnished under sub-section (1) of section 39 verify, validate, modify or delete

the details of supplies furnished by the suppliers.

(2) Notwithstanding anything contained in section 41, section 42 or

section 43,the procedure for availing of input tax credit by the recipient and

verification thereof shall be such as may be prescribed.

(3) The procedure for furnishing the details of outward supplies by

the supplier on the common portal, for the purposes of availing input tax credit

by the recipient shall be such as may be prescribed.

Amendment

of section 39.

Insertion of new

section 43A.

“Procedure for

furnishing

return and

availing input

tax credit.

(4) The procedure for availing input tax credit in respect of outward

supplies not furnished under sub-section (3) shall be such as may be

prescribed and such procedure may include the maximum amount of the

input tax credit which can be so availed, not exceeding twenty per cent. of the

input tax credit available, on the basis of details furnished by the suppliers

under the said sub-section.

(5) The amount of tax specified in the outward supplies for which

the details have been furnished by the supplier under sub-section (3) shall be

deemed to be the tax payable by him under the provisions of the Act.

(6) The supplier and the recipient of a supply shall be jointly and

severally liable to pay tax or to pay the input tax credit availed, as the case

may be, in relation to outward supplies for which the details have been

furnished under sub-section (3) or sub-section (4) but return thereof has not

been furnished.

(7) For the purposes of sub-section (6), the recovery shall be made

in such manner as may be prescribed and such procedure may provide for

non-recovery of an amount of tax or input tax credit wrongly availed not

exceeding one thousand rupees.

(8) The procedure, safeguards and threshold of the tax amount in

relation to outward supplies, the details of which can be furnished under sub-

section (3) by a registered person,—

(i) within six months of taking registration;

(ii) who has defaulted in payment of tax and where such default

has continued for more than two months from the due date of

payment of such defaulted amount, shall be such as may be

prescribed.”.

19. In section 48 of the principal Act, in sub-section (2), after the word and

figures “section 45”, the words “and to perform such other functions” shall be

inserted.

20. In section 49 of the principal Act,––

(a) in sub-section (2), for the word and figures “section 41”, the words,

figures and letter “section 41 or section 43A” shall be substituted;

(b) in sub-section (5),––

(i) in clause (c), the following proviso shall be inserted, namely:––

“Provided that the input tax credit on account of State tax

shall be utilised towards payment of integrated tax only where

the balance of the input tax credit on account of central tax is not

available for payment of integrated tax;”;

(ii) in clause (d), the following proviso shall be inserted, namely:––

“Provided that the input tax credit on account of Union

territory tax shall be utilised towards payment of integrated tax

only where the balance of the input tax credit on account of

central tax is not available for payment of integrated tax;”.

Amendment

of section 48.

Amendment

of section 49.

21. After section 49 of the principal Act, the following sections shall be

inserted, namely:––

49A. Notwithstanding anything contained in section 49, the input tax

credit on account of State tax shall be utilised towards payment of

integrated tax or State tax, as the case may be, only after the input tax

credit available on account of integrated tax has first been utilised fully

towards such payment.

49B. Notwithstanding anything contained in this Chapter and subject

to the provisions of clause (e) and clause (f) of sub-section (5) of

section 49, the Government may, on the recommendations of the

Council, prescribe the order and manner of utilisation of the input tax

credit on account of integrated tax, central tax, State tax or Union

territory tax, as the case may be, towards payment of any such tax.”.

22. In section 52 of the principal Act, in sub-section (9), for the word and

figures “section 37”, the words and figures “section 37 or section 39” shall be

substituted.

23. In section 54 of the principal Act,—

(a) in sub-section (8), in clause (a), for the words “zero-rated supplies”,

the words "export" and "exports" shall respectively be substituted;

(b) in the Explanation, in clause (2) ,––

(i) in sub-clause (c), in item (i), after the words “foreign exchange”,

the words “or in Indian rupees wherever permitted by the

Reserve Bank of India” shall be inserted;

(ii)for sub-clause (e), the following sub-clause shall be substituted,

namely:––

“(e) in the case of refund of unutilised input tax credit

under clause (ii) of the first proviso to sub-section (3), the due

date for furnishing of return under section 39 for the period in

which such claim for refund arises;”.

24. In section 79 of the principal Act, after sub-section (4), the following

Explanation shall be inserted, namely:—

‘Explanation.––For the purposes of this section, the word

person shall include “distinct persons” as referred to in sub-section (4)

or, as the case may be, sub-section (5) of section 25.’.

25. In section 107 of the principal Act, in sub-section (6), in clause (b), after

the words “arising from the said order,”, the words “subject to a maximum of

twenty-five crore rupees,” shall be inserted.

26. In section 112 of the principal Act, in sub-section (8), in clause (b), after

the words “arising from the said order,” the words “subject to a maximum of

fifty crore rupees,” shall be inserted.

27. In section 129 of the principal Act, in sub-section (6), for the words

“seven days” occurring at both the places, the words “fourteen days” shall be

substituted.

28. In section 143 of the principal Act, in sub-section (1), in clause (b), after

the proviso, the following proviso shall be inserted, namely:—

Insertion of

new sections

49A and 49B.

“Utilisation of

input tax credit

subject to certain

conditions.

Order of

utilisation of

input tax

credit.

Amendment

of section 52.

Amendment

of section 54.

Amendment

of section 79.

Amendment

of section 107.

Amendment

of section 112.

Amendment

of section 129.

Amendment

of section 143.

“Provided further that the period of one year and three years

may, on sufficient cause being shown, be extended by the

Commissioner for a further period not exceeding one year and two

years respectively.”.

29. In section 166 of the principal Act, for the words “thirty days”, the words

“fourteen days” shall be substituted.

30. In Schedule I of the principal Act, in paragraph 4, for the words “taxable

person”, the word “person” shall be substituted.

31. In Schedule II of the principal Act, in the heading, after the word

“ACTIVITIES”, the words “OR TRANSACTIONS” shall be inserted and shall

always be deemed to have been inserted with effect from the 1st day of July,

2017.

32. In Schedule III of the principal Act, —

(i) after paragraph 6, the following paragraphs shall be inserted,

namely:––

“7. Supply of goods from a place outside India to another place

outside India without such goods entering into India.

8. (a) Supply of warehoused goods to any person before clearance

for home consumption;

(b) Supply of goods by the consignee to any other person, by

endorsement of documents of title to the goods, after the goods

have been dispatched from the port of origin located outside India

but before clearance for home consumption.”;

(ii) the Explanation shall be numbered as Explanation 1 and after

Explanation 1 as so numbered, the following Explanation shall be

inserted, namely:—

‘Explanation 2.–– For the purposes of paragraph 8, the

expression “warehoused goods” shall have the same meaning as

assigned to it in the Customs Act, 1962.’.

By order of the Governor

SASHIKANTA MISHRA

Principal Secretary to Government

Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10

Ex. Gaz. 1438-173+880

52 of 1962.

Amendment

of Schedule II.

Amendment

of Schedule I.

Amendment of

Schedule III.

Amendment of

section 166.