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5 {
No. 31
Poudouchéry
Lundi
5
Juin
2017
No.
Puducherry
Monday
5th
June
2017
( 15 Jyaistha 1939 )
GOVERNMENT OF PUDUCHERRY
LAW DEPARTMENT
No. 138/Leg./2017-LD.
Puducherry, the 5th June 2017.
The following Act of the Legislative Assembly, Puducherry received
the assent of the Lieutenant-Governor, Puducherry, on the 1st day of
June, 2017 and is hereby published for general information :—
N. MURUGAVEL,
Under Secretary to Government (Law).
530
LA GAZETTE DE L'ETAT
[PART–II
THE PUDUCHERRY GOODS AND SERVICES TAX
ACT, 2017
(Act No. 6 of 2017)
(1-6-2017)
AN
ACT
to make a provision for levy and collection of tax on
Intra-State supply of goods or services or both by
the Union territory of Puducherry and the matters
connected therewith or incidental thereto.
BE it enacted by the Legislative Assembly of
Puducherry in the Sixty-eighth year of the Republic of India
as follows:-
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Puducherry Goods
and Services Tax Act, 2017.
(2) It extends to the whole of the Union territory
of Puducherry.
(3) It 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.
2. In this Act, unless the context otherwise requires,-
(1) "actionable claim" shall have the same meaning
as assigned to it in section 3 of the Transfer of
Property Act, 1882;
Short title,
extent and
commencement.
Definitions.
Central
Act 4
of 1882.
531
PART–II]
LA GAZETTE DE L'ETAT
(2) "address of delivery" means the address of
the recipient of goods or services or both indicated
on the tax invoice issued by a registered person
for delivery of such goods or services or both;
(3) "address on record" means the address of
the recipient as available in the records of the
supplier;
(4) "adjudicating authority" means any
authority, appointed or authorised to pass any
order or decision under this Act, but does not
include the Commissioner, Revisional Authority,
the Authority for Advance Ruling, the Appellate
Authority for Advance Ruling, the Appellate
Authority and the Appellate Tribunal;
(5) "agent" means a person, including a factor,
broker, commission agent, arhatia, del credere
agent, an auctioneer or any other mercantile
agent, by whatever name called, who carries on
the business of supply or receipt of goods or
services or both on behalf of another;
(6) "aggregate turnover" means the aggregate
value of all taxable supplies (excluding the value
of inward supplies on which tax is payable by a
person on reverse charge basis), exempt
supplies, exports of goods or services or both
and inter-State supplies of persons having the
same Permanent Account Number, to be
computed on all India basis but excludes central
tax, State tax, Union territory tax, integrated tax
and cess;
(7) "agriculturist" means an individual or a
Hindu
Undivided
Family
who
undertakes
cultivation of land-
(a) by own labour, or
(b) by the labour of family, or
532
LA GAZETTE DE L'ETAT
[PART–II
(c) by servants on wages payable in cash
or kind or by hired labour under personal
supervision or the personal supervision of any
member of the family;
(8) "Appellate Authority" means an authority
appointed or authorised to hear appeals as
referred to in section 107;
(9) "Appellate Tribunal" means the Goods and
Services Tax Appellate Tribunal referred to in
section 109;
(10) "appointed day" means the date on which
the provisions of this Act shall come into force;
(11) "assessment" means determination of tax
liability under this Act and includes self-
assessment, re-assessment, provisional assessment,
summary assessment and best judgement assessment;
(12) "associated enterprises" shall have the
same meaning as assigned to it in section 92A of
the Income-tax Act, 1961;
(13) "audit" means the examination of records,
returns and other documents maintained or
furnished by the registered person under this Act
or the rules made thereunder or under any other
law for the time being in force to verify the
correctness of turnover declared, taxes paid,
refund claimed and input tax credit availed, and
to assess his compliance with the provisions of
this Act or the rules made thereunder;
(14) "authorised bank" shall mean a bank or a
branch of a bank authorised by the Central
Government to collect the tax or any other amount
payable under this Act;
(15) "authorised representative" means the
representative as referred to under section 116;
Central
Act 43
of 1961.
533
PART–II]
LA GAZETTE DE L'ETAT
(16) "Board" means the Central Board of
Excise and Customs constituted under the Central
Boards of Revenue Act, 1963;
(17) "business" includes—
(a) any trade, commerce, manufacture,
profession, vocation, adventure, wager or any
other similar activity, whether or not it is for
a pecuniary benefit;
(b) any activity or transaction in
connection with or incidental or ancillary to
sub-clause (a);
(c) any activity or transaction in the
nature of sub-clause (a), whether or not there
is volume, frequency, continuity or regularity
of such transaction;
(d) supply or acquisition of goods
including capital goods and services in connection
with commencement or closure of business;
(e) provision by a club, association,
society, or any such body (for a subscription
or any other consideration) of the facilities or
benefits to its members;
(f) admission, for a consideration, of
persons to any premises;
(g) services supplied by a person as the
holder of an office which has been accepted
by him in the course or furtherance of his
trade, profession or vocation;
(h) services provided by a race club by way
of totalisator or a licence to book maker in such
club; and
(i) any activity or transaction undertaken
by the Central Government, a State Government
or any local authority in which they are
engaged as public authorities;
Central
Act 54
of 1963.
534
LA GAZETTE DE L'ETAT
[PART–II
(18) "business vertical" means a distinguishable
component of an enterprise that is engaged in the
supply of individual goods or services or a group
of related goods or services which is subject to
risks and returns that are different from those of
the other business verticals.
Explanation.—For the purposes of this clause,
factors that should be considered in determining
whether goods or services are related include—
(a) the nature of the goods or services;
(b) the
nature
of
the
production
processes;
(c) the type or class of customers for the
goods or services;
(d) the methods used to distribute the
goods or supply of services; and
(e) the nature of regulatory environment
(wherever applicable), including banking,
insurance or public utilities;
(19) "capital goods" means goods, the value of
which is capitalised in the books of account of
the person claiming the input tax credit and which
are used or intended to be used in the course or
furtherance of business;
(20) "casual taxable person" means a person
who occasionally undertakes transactions involving
supply of goods or services or both in the course
or furtherance of business, whether as principal,
agent or in any other capacity, in the taxable
territory where he has no fixed place of business;
(21) "central tax" means the central goods and
services tax levied under section 9 of the Central
Goods and Services Tax Act;
(22) "cess" shall have the same meaning as
assigned to it in the Goods and Services Tax
(Compensation to States) Act;
535
PART–II]
LA GAZETTE DE L'ETAT
(23) "chartered accountant" means a chartered
accountant as defined in clause (b) of sub-section (1)
of section 2 of the Chartered Accountants Act, 1949;
(24) "Commissioner" means the Commissioner
of State tax appointed under section 3 and
includes the Principal Chief Commissioner or
Chief Commissioner of State tax appointed under
section 3;
(25) "Commissioner in the Board" means the
Commissioner referred to in section 168 of the
Central Goods and Services Tax Act;
(26) "common portal" means the common
goods and services tax electronic portal referred
to in section 146;
(27) "common working days" shall mean such
days in succession which are not declared as
gazetted holidays by the Central Government or
the Government of Puducherry;
(28) "company secretary" means a company
secretary as defined in clause (c) of sub-section (1)
of section 2 of the Company Secretaries Act, 1980;
(29) "competent
authority"
means
such
authority as may be notified by the Government;
(30) "composite supply" means a supply made
by a taxable person to a recipient consisting of
two or more taxable supplies of goods or services
or both, or any combination thereof, which are
naturally bundled and supplied in conjunction
with each other in the ordinary course of business,
one of which is a principal supply;
Central
Act 38
of 1949.
Central
Act 56
of 1980.
536
LA GAZETTE DE L'ETAT
[PART–II
Illustration: Where goods are packed and
transported with insurance, the supply of goods,
packing materials, transport and insurance is a
composite supply and supply of goods is a
principal supply.
(31) "consideration" in relation to the supply
of goods or services or both includes—
(a) any payment made or to be made,
whether in money or otherwise, in respect of,
in response to, or for the inducement of, the
supply of goods or services or both, whether
by the recipient or by any other person but
shall not include any subsidy given by the
Central Government or a State Government;
(b) the monetary value of any act or
forbearance, in respect of, in response to, or
for the inducement of, the supply of goods or
services or both, whether by the recipient or
by any other person but shall not include any
subsidy given by the Central Government or a
State Government:
Provided that a deposit given in respect of
the supply of goods or services or both shall
not be considered as payment made for such
supply unless the supplier applies such deposit
as consideration for the said supply;
(32) "continuous supply of goods" means
a supply of goods which is provided, or agreed
to be provided, continuously or on recurrent
basis, under a contract, whether or not by means
of a wire, cable, pipeline or other conduit, and
for which the supplier invoices the recipient on
a regular or periodic basis and includes supply of
such goods as the Government may, subject to
such conditions, as it may, by notification,
specify;
537
PART–II]
LA GAZETTE DE L'ETAT
(33) "continuous supply of services" means a
supply of services which is provided, or agreed
to be provided, continuously or on recurrent basis,
under a contract, for a period exceeding three
months with periodic payment obligations and
includes supply of such services as the
Government may, subject to such conditions, as
it may, by notification, specify;
(34) "conveyance" includes a vessel, an aircraft
and a vehicle;
(35) "cost accountant" means a cost accountant
as defined in clause (c) of sub-section (1) of
section 2 of the Cost and Works Accountants
Act, 1959;
(36) "Council" means the Goods and Services
Tax Council established under article 279A of the
Constitution;
(37) "credit note" means a document issued by
a registered person under sub-section (1) of
section 34;
(38) "debit note" means a document issued by
a registered person under sub-section (3) of
section 34;
(39) "deemed exports" means such supplies of
goods as may be notified under section 147;
(40) "designated authority" means such
authority as may be notified by the Commissioner;
(41) "document" includes written or printed
record of any sort and electronic record as defined
in clause (t) of
section
2
of the Information
Technology Act, 2000;
Central
Act 21
of 2000.
Central
Act 23
of 1959.
538
LA GAZETTE DE L'ETAT
[PART–II
(42) "drawback" in relation to any goods
manufactured in India and exported, means the
rebate of duty, tax or cess chargeable on any
imported inputs or on any domestic inputs or
input services used in the manufacture of such
goods;
(43) "electronic cash ledger" means the
electronic cash ledger referred to in sub-section
(1) of section 49;
(44) "electronic commerce" means the supply
of goods or services or both, including digital
products over digital or electronic network;
(45) "electronic commerce operator" means
any person who owns, operates or manages digital
or electronic facility or platform for electronic
commerce;
(46) "electronic credit ledger" means the
electronic credit ledger referred to in sub-
section (2) of section 49;
(47) "exempt supply" means supply of any
goods or services or both which attracts nil rate
of tax or which may be wholly exempt from tax
under section 11, or under section 6 of the
Integrated Goods and Services Tax Act, and
includes non-taxable supply;
(48) "existing law" means any law, notification,
order, rule or regulation relating to levy and
collection of duty or tax on goods or services or
both passed or made before the commencement
of this Act by the Legislature or any Authority or
person having the power to make such law,
notification, order, rule or regulation;
(49) "family" means,-
(i) the spouse and children of the
person, and
539
PART–II]
LA GAZETTE DE L'ETAT
(ii) the parents, grand-parents, brothers
and sisters of the person if they are wholly or
mainly dependent on the said person;
(50) "fixed establishment" means a place
(other than the registered place of business)
which is characterised by a sufficient degree of
permanence and suitable structure in terms of
human and technical resources to supply
services, or to receive and use services for its
own needs;
(51) "Fund" means the Consumer Welfare Fund
established under section 57;
(52) "goods'' means every kind of movable
property other than money and securities but
includes actionable claim, growing crops, grass
and things attached to or forming part of the land
which are agreed to be severed before supply or
under a contract of supply;
(53) "Government" means the Government of
the Union territory of Puducherry;
(54) "Goods and Services Tax (Compensation
to States) Act" means the Goods and Services Tax
(Compensation to States) Act, 2017;
(55) "goods and services tax practitioner"
means any person who has been approved under
section 48 to act as such practitioner;
(56) "India" means the territory of India as
referred to in article 1 of the Constitution, its
territorial waters, seabed and sub-soil underlying
such
waters,
continental
shelf,
exclusive
economic zone or any other maritime zone as
referred to in the Territorial Waters, Continental
Shelf, Exclusive Economic Zone and other
Maritime Zones Act, 1976, and the air space
above its territory and territorial waters;
Central
Act 15
of 2017.
Central
Act 80
of 1976.
540
LA GAZETTE DE L'ETAT
[PART–II
(57) "Integrated Goods and Services Tax Act"
means the Integrated Goods and Services Tax
Act, 2017;
(58) "integrated tax" means the integrated
goods and services tax levied under the Integrated
Goods and Services Tax Act;
(59) "input" means any goods other than capital
goods used or intended to be used by a supplier
in the course or furtherance of business;
(60) "input service" means any service used or
intended to be used by a supplier in the course
or furtherance of business;
(61) "Input Service Distributor" means an office
of the supplier of goods or services or both which
receives tax invoices issued under section 31
towards the receipt of input services and issues a
prescribed document for the purposes of
distributing the credit of central tax, State tax,
integrated tax or Union territory tax paid on the
said services to a supplier of taxable goods or
services or both having the same Permanent
Account Number as that of the said office;
(62) "input tax" in relation to a registered
person, means the central tax, State tax, integrated
tax or Union territory tax charged on any supply
of goods or services or both made to him and
includes—
(a) the integrated goods and services tax
charged on import of goods;
(b) the tax payable under the provisions
of sub-sections (3) and (4) of section 9;
(c) the tax payable under the provisions
of sub-sections (3) and (4) of section 5 of the
Integrated Goods and Services Tax Act; or
Central
Act 13
of 2017.
541
PART–II]
LA GAZETTE DE L'ETAT
(d) the tax payable under the provisions
of sub-sections (3) and (4) of section 9 of the
Central Goods and Services Tax Act,
but does not include the tax paid under the
composition levy;
(63) "input tax credit" means the credit of input
tax;
(64) "intra-State supply of goods" shall have
the same meaning as assigned to it in section 8
of the Integrated Goods and Services Tax Act;
(65) "intra-State supply of services" shall have
the same meaning as assigned to it in section 8
of the Integrated Goods and Services Tax Act;
(66) "invoice" or "tax invoice" means the tax
invoice referred to in section 31;
(67) "inward supply" in relation to a person,
shall mean receipt of goods or services or both
whether by purchase, acquisition or any other
means, with or without consideration;
(68) "job work" means any treatment or
process undertaken by a person on goods
belonging to another registered person and the
expression "job worker" shall be construed
accordingly;
(69) "local authority" means—
(a) a "Panchayat" as defined in clause (d)
of article 243 of the Constitution;
(b) a "Municipality" as defined in clause
(e) of article 243P of the Constitution;
(c) a Municipal Committee, a Zilla
Parishad, a District Board, and any other
authority legally entitled to, or entrusted by
the
Central
Government
or
any
State
Government with the control or management
of a municipal or local fund;
542
LA GAZETTE DE L'ETAT
[PART–II
(d) a Cantonment Board as defined in
section 3 of the Cantonments Act, 2006;
(e) a Regional Council or a District
Council constituted under the Sixth Schedule
to the Constitution;
(f) a Development Board constituted
under article 371 of the Constitution; or
(g) a Regional Council constituted under
article 371A of the Constitution;
(70) "location of the recipient of services"
means,-
(a) where a supply is received at a place
of business for which the registration has been
obtained, the location of such place of
business;
(b) where a supply is received at a place
other than the place of business for which
registration has been obtained (a fixed
establishment elsewhere), the location of such
fixed establishment;
(c) where a supply is received at more
than one establishment, whether the place of
business or fixed establishment, the location
of the establishment most directly concerned
with the receipt of the supply; and
(d) in absence of such places, the
location of the usual place of residence of the
recipient;
(71) "location of the supplier of services"
means,-
(a) where a supply is made from a place
of business for which the registration has been
obtained, the location of such place of
business;
Central
Act 41
of 2006.
543
PART–II]
LA GAZETTE DE L'ETAT
(b) where a supply is made from a place
other than the place of business for which
registration has been obtained (a fixed
establishment elsewhere), the location of such
fixed establishment;
(c) where a supply is made from more than
one establishment, whether the place of business or
fixed
establishment,
the
location
of
the
establishment most directly concerned with the
provisions of the supply; and
(d) in absence of such places, the
location of the usual place of residence of the
supplier;
(72) "manufacture" means processing of raw
material or inputs in any manner that results in
emergence of a new product having a distinct
name,
character
and
use
and
the
term
"manufacturer" shall be construed accordingly;
(73) "market value" shall mean the full amount
which a recipient of a supply is required to pay
in order to obtain the goods or services or both
of like kind and quality at or about the same time
and at the same commercial level where the
recipient and the supplier are not related;
(74) "mixed supply" means two or more
individual supplies of goods or services, or any
combination thereof, made in conjunction with
each other by a taxable person for a single price
where such supply does not constitute a composite
supply.
Illustration: A supply of a package consisting
of canned foods, sweets, chocolates, cakes, dry
fruits, aerated drinks and fruit juices when
supplied for a single price is a mixed supply.
Each of these items can be supplied separately
and is not dependent on any other. It shall not be
a mixed supply if these items are supplied
separately;
544
LA GAZETTE DE L'ETAT
[PART–II
(75) "money" means the Indian legal tender or
any foreign currency, cheque, promissory note,
bill of exchange, letter of credit, draft, pay order,
traveller cheque, money order, postal or electronic
remittance or any other instrument recognized by
the Reserve Bank of India when used as a
consideration to settle an obligation or exchange
with Indian legal tender of another denomination
but shall not include any currency that is held for
its numismatic value;
(76) "motor vehicle" shall have the same
meaning as assigned to it in clause (28) of
section 2 of the Motor Vehicles Act, 1988;
(77) "non-resident taxable person" means any
person who occasionally undertakes transactions
involving supply of goods or services or both,
whether as principal or agent or in any other
capacity, but who has no fixed place of business
or residence in India;
(78) "non-taxable supply'' means a supply of
goods or services or both which is not leviable
to tax under this Act or under the Integrated
Goods and Services Tax Act;
(79) "non-taxable territory" means the territory
which is outside the taxable territory;
(80) "notification" means a notification
published in the Official Gazette and the
expressions 'notify' and 'notified' shall be
construed accordingly;
(81) "other territory" includes territories other
than those comprising in a State and those referred
to in sub-clauses (a) to (e) of clause (114);
(82) "output tax" in relation to a taxable
person, means the tax chargeable under this Act
on taxable supply of goods or services or both
made by him or by his agent but excludes tax
payable by him on reverse charge basis;
Central
Act 59
of 1988.
545
PART–II]
LA GAZETTE DE L'ETAT
(83) "outward supply" in relation to a taxable
person, means supply of goods or services or
both, whether by sale, transfer, barter, exchange,
licence, rental, lease or disposal or any other
mode, made or agreed to be made by such person
in the course or furtherance of business;
(84) "person" includes—
(a) an individual;
(b) a Hindu Undivided Family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(f) an association of persons or a body of
individuals, whether incorporated or not, in
India or outside India;
(g) any corporation established by or under
any Central Act, State Act or Provincial Act or
a Government company as defined in clause
(45) of section 2 of the Companies Act, 2013;
(h) any body corporate incorporated by or
under the laws of a country outside India;
(i) a co-operative society registered under
any law relating to co-operative societies;
(j) a local authority;
(k)
Central
Government
or
a
State
Government;
(l) society as defined under the Societies
Registration Act, 1860;
(m) trust; and
(n) every artificial juridical person, not falling
within any of the above;
Central
Act 18
of 2013.
Central
Act 21
of 1860.
546
LA GAZETTE DE L'ETAT
[PART–II
(85) "place of business" includes—
(a) a place from where the business is
ordinarily
carried
on,
and
includes
a
warehouse, a godown or any other place where
a taxable person stores his goods, supplies or
receives goods or services or both; or
(b) a place where a taxable person
maintains his books of account; or
(c) a place where a taxable person is
engaged in business through an agent, by
whatever name called;
(86) "place of supply" means the place of
supply as referred to in Chapter V of the
Integrated Goods and Services Tax Act;
(87) "prescribed'' means prescribed by rules
made under this Act on the recommendations of
the Council;
(88) "principal" means a person on whose
behalf an agent carries on the business of supply
or receipt of goods or services or both;
(89) "principal place of business" means the
place of business specified as the principal place
of business in the certificate of registration;
(90) "principal supply" means the supply of
goods
or
services
which
constitutes
the
predominant element of a composite supply and
to which any other supply forming part of that
composite supply is ancillary;
(91) "proper officer" in relation to any
function to be performed under this Act, means
the Commissioner or the officer of the State tax
who
is
assigned
that
function
by
the
Commissioner;
(92) "quarter" shall mean a period comprising
three consecutive calendar months, ending on the
last day of March, June, September and December
of a calendar year;
547
PART–II]
LA GAZETTE DE L'ETAT
(93) "recipient" of supply of goods or services
or both, means—
(a) where a consideration is payable for the
supply of goods or services or both, the
person who is liable to pay that consideration;
(b) where no consideration is payable for
the supply of goods, the person to whom the
goods are delivered or made available, or to
whom possession or use of the goods is given
or made available; and
(c) where no consideration is payable for
the supply of a service, the person to whom the
service is rendered,
and any reference to a person to whom a
supply is made shall be construed as a
reference to the recipient of the supply and
shall include an agent acting as such on behalf
of the recipient in relation to the goods or
services or both supplied;
(94) "registered person" means a person who
is registered under section 25 but does not
include a person having a Unique Identity
Number.
(95) "regulations" means the regulations made
by the Government under this Act on the
recommendations of the Council;
(96) "removal'' in relation to goods, means-
(a) despatch of the goods for delivery by the
supplier thereof or by any other person acting
on behalf of such supplier; or
(b) collection of the goods by the recipient
thereof or by any other person acting on
behalf of such recipient;
(97) "return" means any return prescribed or
otherwise required to be furnished by or under
this Act or the rules made thereunder;
548
LA GAZETTE DE L'ETAT
[PART–II
(98) "reverse charge'' means the liability to pay
tax by the recipient of supply of goods or services
or both instead of the supplier of such goods or
services or both under sub-section (3)
or sub-
section (4) of section 9, or under sub-section
(3) or sub-section (4) of section 5 of the Integrated
Goods and Services Tax Act;
(99) "Revisional Authority" means an authority
appointed or authorised for revision of decision
or orders as referred to in section 108;
(100) "Schedule" means a Schedule appended
to this Act;
(101) "securities" shall have the same meaning
as assigned to it in clause (h) of section 2 of the
Securities Contracts (Regulation) Act, 1956;
(102) "services" means anything other than
goods, money and securities but includes
activities relating to the use of money or its
conversion by cash or by any other mode, from
one form, currency or denomination, to another
form, currency or denomination for which a
separate consideration is charged;
(103) "State" means the Union territory of
Puducherry;
(104) "State tax" means the tax levied under
this Act;
(105) "supplier" in relation to any goods or
services or both, shall mean the person supplying
the said goods or services or both and shall
include an agent acting as such on behalf of such
supplier in relation to the goods or services or
both supplied;
Central
Act 42
of 1956.
549
PART–II]
LA GAZETTE DE L'ETAT
(106) "tax period'' means the period for which
the return is required to be furnished;
(107) "taxable person" means a person who is
registered or liable to be registered under section
22 or section 24;
(108) "taxable supply'' means a supply of
goods or services or both which is leviable to tax
under this Act;
(109) "taxable territory'' means the territory to
which the provisions of this Act apply;
(110) "telecommunication service" means
service of any description (including electronic
mail, voice mail, data services, audio text
services, video text services, radio paging and
cellular mobile telephone services) which is
made available to users by means of any
transmission or reception of signs, signals,
writing, images and sounds or intelligence of any
nature,
by
wire,
radio,
visual
or
other
electromagnetic means;
(111) "the Central Goods and Services Tax Act"
means the Central Goods and Services Tax
Act, 2017;
(112) "turnover in State" or "turnover in Union
territory" means the aggregate value of all taxable
supplies (excluding the value of inward supplies
on which tax is payable by a person on reverse
charge basis) and exempt supplies made within a
State or Union territory by a taxable person,
exports of goods or services or both and inter-
State supplies of goods or services or both made
from the State or Union territory by the said
taxable person but excludes central tax, State tax,
Union territory tax, integrated tax and cess;
Central
Act 12
of 2017.
550
LA GAZETTE DE L'ETAT
[PART–II
(113) "usual place of residence" means—
(a) in case of an individual, the place
where he ordinarily resides;
(b) in other cases, the place where the
person is incorporated or otherwise legally
constituted;
(114) "Union territory" means the territory of,-
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
(c) Dadra and Nagar Haveli;
(d) Daman and Diu;
(e) Chandigarh; and
(f) other territory;
Explanation.—For the purposes of this Act,
each of the territories specified in sub-clauses
(a) to (f) shall be considered to be a separate
Union territory;
(115) "Union territory tax" means the Union
territory goods and services tax levied under the
Union Territory Goods and Services Tax Act;
(116) "Union Territory Goods and Services Tax
Act" means the Union Territory Goods and
Services Tax Act, 2017;
(117) "valid return" means a return furnished
under sub-section (1) of section 39 on which
self-assessed tax has been paid in full;
(118) "voucher" means an instrument where
there is
an obligation to accept it as
consideration or part consideration for a supply
of goods or services or both and where the goods
Central
Act 14
of 2017.
551
PART–II]
LA GAZETTE DE L'ETAT
or services or both to be supplied or the
identities of their potential suppliers are either
indicated on the instrument itself or in related
documentation,
including
the
terms
and
conditions of use of such instrument;
(119) "works contract" means a contract for
building, construction, fabrication, completion,
erection, installation, fitting out, improvement,
modification, repair, maintenance, renovation,
alteration or commissioning of any immovable
property wherein transfer of property in goods
(whether as goods or in some other form) is
involved in the execution of such contract;
(120) words and expressions used and not
defined in this Act but defined in the Integrated
Goods and Services Tax Act, the Central Goods
and Services Tax Act, the Union Territory Goods
and Services Tax Act and the Goods and Services
Tax (Compensation to States) Act shall have the
same meanings as assigned to them in those
Acts.
CHAPTER II
ADMINISTRATION
3. The Government shall, by notification, appoint
the following classes of officers for the purposes of
this Act, namely:—
(a) Principal Chief Commissioner of State tax,
(b) Chief Commissioner of State tax,
(c) Commissioner of State tax,
(d) Special Commissioner of State tax,
(e) Additional Commissioners of State tax,
(f) Joint Commissioners of State tax,
(g) Deputy Commissioners of State tax,
(h) Assistant Commissioners of State tax, and
(i) any other class of officers as it may deem
fit:
Officers
under this
Act.
552
LA GAZETTE DE L'ETAT
[PART–II
Provided that, the officers appointed under the
Puducherry Value Added Tax Act, 2007 shall be deemed
to be the officers appointed under the provisions of this
Act.
4. (1) The Government may, in addition to the
officers as may be notified under section 3, appoint
such persons as it may think fit to be the officers
under this Act.
(2) The Commissioner shall have jurisdiction
over the whole of the State, the Special Commissioner
and an Additional Commissioner in respect of all or
any of the functions assigned to them, shall have
jurisdiction over the whole of the State or where the
State Government so directs, over any local area
thereof, and all other officers shall, subject to such
conditions as may be specified, have jurisdiction over
the whole of the State or over such local areas as the
Commissioner may, by order, specify.
5. (1) Subject to such conditions and limitations
as the Commissioner may impose, an officer of State
tax may exercise the powers and discharge the duties
conferred or imposed on him under this Act.
(2) An officer of State tax may exercise the
powers and discharge the duties conferred or imposed
under this Act on any other officer of State tax who is
subordinate to him.
(3) The Commissioner may, subject to such
conditions and limitations as may be specified in this
behalf by him, delegate his powers to any other officer
who is subordinate to him.
(4) Notwithstanding anything contained in this
section, an Appellate Authority shall not exercise the
powers and discharge the duties conferred or imposed
on any other officer of State tax.
Act
No. 9
of 2007.
Appointment
of officers.
Powers of
officers.
553
PART–II]
LA GAZETTE DE L'ETAT
6. (1) Without prejudice to the provisions of this
Act, the officers appointed under the Central Goods and
Services Tax Act are authorised to be the proper
officers for the purposes of this Act, subject to such
conditions
as
the
Government
shall,
on
the
recommendations of the Council, by notification,
specify.
(2) Subject to the conditions specified in the
notification issued under sub-section (1),-
(a) where any proper officer issues an order
under this Act, he shall also issue an order under
the Central Goods and Services Tax Act, as
authorised by the said Act under intimation to the
jurisdictional officer of central tax;
(b) where a proper officer under the Central
Goods and Services Tax Act has initiated any
proceedings on a subject matter, no proceedings
shall be initiated by the proper officer under this
Act on the same subject matter.
(3) Any proceedings for rectification, appeal and
revision, wherever applicable, of any order passed by
an officer appointed under this Act, shall not lie
before an officer appointed under the Central Goods
and Services Tax Act.
CHAPTER III
LEVY AND COLLECTION OF TAX
7. (1) For the purposes of this Act, the expression
"supply" includes—
(a) all forms of supply of goods or services or
both such as sale, transfer, barter, exchange,
license, rental, lease or disposal made or agreed
to be made for a consideration by a person in the
course or furtherance of business;
(b) import of services for a consideration
whether or not in the course or furtherance of
business;
Authorisation
of officers
of central tax
as proper
officer in
certain
circumstances.
Scope of
supply.
554
LA GAZETTE DE L'ETAT
[PART–II
(c) the activities specified in Schedule I, made
or agreed to be made without a consideration; and
(d) the activities to be treated as supply of
goods or supply of services as referred to in
Schedule II.
(2) Notwithstanding anything contained in sub-
section (1),—
(a) activities or transactions specified in
Schedule III; or
(b) such activities or transactions undertaken
by the Central Government, a State Government
or any local authority in which they are engaged
as public authorities, as may be notified by the
Government on the recommendations of the
Council,
shall be treated neither as a supply of goods nor a
supply of services.
(3) Subject to the provisions of sub-sections (1)
and (2), the Government may, on the recommendations
of
the
Council,
specify,
by
notification,
the
transactions that are to be treated as-
(a) a supply of goods and not as a supply of
services; or
(b) a supply of services and not as a supply of
goods.
8. The tax liability on a composite or a mixed
supply shall be determined in the following manner,
namely:—
(a) a composite supply comprising two or more
supplies, one of which is a principal supply, shall
be treated as a supply of such principal supply;
and
Tax liability
on composite
and mixed
supplies.
555
PART–II]
LA GAZETTE DE L'ETAT
(b) a mixed supply comprising two or more
supplies shall be treated as a supply of that
particular supply which attracts the highest rate
of tax.
9. (1) Subject to the provisions of sub-section (2),
there shall be levied a tax called the Puducherry goods
and services tax on all intra-State supplies of goods
or services or both, except on the supply of alcoholic
liquor for human consumption, on the value
determined under section 15 and at such rates, not
exceeding twenty per cent., as may be notified by the
Government on the recommendations of the Council
and collected in such manner as may be prescribed and
shall be paid by the taxable person.
(2) The State tax on the supply of petroleum
crude, high speed diesel, motor spirit (commonly
known as petrol), natural gas and aviation turbine fuel,
shall be levied with effect from such date as may be
notified by the Government on the recommendations
of the Council.
(3) The Government may, on the recommendations
of the Council, by notification, specify categories of
supply of goods or services or both, the tax on which
shall be paid on reverse charge basis by the recipient
of such 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 the supply of such goods or services or both.
(4) The State tax in respect of the supply of
taxable goods or services or both by a supplier, who
is not registered, to a registered person shall be paid
by such person on reverse charge basis as the recipient
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 the supply of such goods or services
or both.
Levy and
collection.
556
LA GAZETTE DE L'ETAT
[PART–II
(5) The Government may, on the recommendations
of the Council, by notification, specify categories of
services the tax on intra-State supplies of which shall
be paid by the electronic commerce operator if such
services are supplied through it, and all the provisions
of this Act shall apply to such electronic commerce
operator as if he is the supplier liable for paying the
tax in relation to the supply of such services:
Provided that where an electronic commerce
operator does not have a physical presence in the
taxable territory, any person representing such
electronic commerce operator for any purpose in the
taxable territory shall be liable to pay tax:
Provided further that where an electronic
commerce operator does not have a physical presence
in the taxable territory and also he does not have a
representative in the said territory, such electronic
commerce operator shall appoint a person in the
taxable territory for the purpose of paying tax and such
person shall be liable to pay tax.
10. (1) Notwithstanding anything to the contrary
contained in this Act but subject to the provisions of
sub-sections (3) and (4) of section 9, a registered
person, whose aggregate turnover in the preceding
financial year did not exceed fifty lakh rupees may opt
to pay, in lieu of the tax payable by him, an amount
calculated at such rate as may be prescribed, but not
exceeding,-
(a) one per cent. of the turnover in State in
case of a manufacturer,
(b) two and a half per cent. of the turnover in
State in case of persons engaged in making
supplies referred to in clause (b) of paragraph 6
of Schedule II, and
(c) half per cent. of the turnover in State in
case of other suppliers,
subject to such conditions and restrictions as
may be prescribed:
Composition
levy.
557
PART–II]
LA GAZETTE DE L'ETAT
Provided that the Government may, by notification,
increase the said limit of fifty lakh rupees to such
higher amount, not exceeding one crore rupees, as may
be recommended by the Council.
(2) The registered person shall be eligible to opt
under sub-section (1), if—
(a) he is not engaged in the supply of services
other than supplies referred to in clause (b) of
paragraph 6 of Schedule II;
(b) he is not engaged in making any supply of
goods which are not leviable to tax under this Act;
(c) he is not engaged in making any inter-State
outward supplies of goods;
(d) he is not engaged in making any supply of
goods through an electronic commerce operator
who is required to collect tax at source under
section 52; and
(e) he is not a manufacturer of such goods as
may be notified by the Government on the
recommendations of the Council:
Provided that where more than one registered
person are having the same Permanent Account
Number (issued under the Income-tax Act, 1961), the
registered person shall not be eligible to opt for the
scheme under sub-section (1) unless all such
registered persons opt to pay tax under that sub-
section.
(3) The option availed of by a registered person
under sub-section (1) shall lapse with effect from the
day on which his aggregate turnover during a financial
year exceeds the limit specified under sub-section (1).
(4) A taxable person to whom the provisions of
sub-section (1) apply shall not collect any tax from
the recipient on supplies made by him nor shall he be
entitled to any credit of input tax.
Central
Act 43
of 1961.
558
LA GAZETTE DE L'ETAT
[PART–II
(5) If the proper officer has reasons to believe
that a taxable person has paid tax under sub-section (1)
despite not being eligible, such person shall, in
addition to any tax that may be payable by him under
any other provisions of this Act, be liable to a penalty
and the provisions of section 73 or section 74 shall,
mutatis mutandis, apply for determination of tax and
penalty.
11. (1) Where the Government is satisfied that
it is necessary in the public interest so to do, it may,
on the recommendations of the Council, by notification,
exempt generally, either absolutely or subject to such
conditions as may be specified therein, goods or
services or both of any specified description from the
whole or any part of the tax leviable thereon with
effect from such date as may be specified in such
notification.
(2) Where the Government is satisfied that it is
necessary in the public interest so to do, it may, on
the recommendations of the Council, by special order
in each case, under circumstances of an exceptional
nature to be stated in such order, exempt from
payment of tax any goods or services or both on which
tax is leviable.
(3) The Government may, if it considers
necessary or expedient so to do for the purpose of
clarifying the scope or applicability of any notification
issued under sub-section (1) or order issued under
sub-section (2), insert an explanation in such
notification or order, as the case may be, by
notification at any time within one year of issue of the
notification under sub-section (1) or order under sub-
section (2), and every such explanation shall have
effect as if it had always been the part of the first such
notification or order, as the case may be.
(4) Any notification issued by the Central
Government, on the recommendations of the Council,
under sub-section (1) of section 11 or order issued
Power to
grant
exemption
from tax.
559
PART–II]
LA GAZETTE DE L'ETAT
under sub-section (2) of the said section of the Central
Goods and Services Tax Act shall be deemed to be a
notification or, as the case may be, an order issued
under this Act.
Explanation.—For the purposes of this section,
where an exemption in respect of any goods or
services or both from the whole or part of the tax
leviable thereon has been granted absolutely, the
registered person supplying such goods or services or
both shall not collect the tax, in excess of the effective
rate, on such supply of goods or services or both.
CHAPTER IV
TIME AND VALUE OF SUPPLY
12. (1) The liability to pay tax on goods shall
arise at the time of supply, as determined in
accordance with the provisions of this section.
(2) The time of supply of goods shall be the
earlier of the following dates, namely:-
(a) the date of issue of invoice by the supplier
or the last date on which he is required, under
sub-section (1) of section 31, to issue the invoice
with respect to the supply; or
(b) the date on which the supplier receives the
payment with respect to the supply:
Provided that where the supplier of taxable goods
receives an amount up to one thousand rupees in
excess of the amount indicated in the tax invoice, the
time of supply to the extent of such excess amount
shall, at the option of the said supplier, be the date of
issue of invoice in respect of such excess amount.
Explanation 1.—For the purposes of clauses (a)
and (b), "supply" shall be deemed to have been made
to the extent it is covered by the invoice or, as the case
may be, the payment.
Time of
supply of
goods.
560
LA GAZETTE DE L'ETAT
[PART–II
Explanation 2.—For the purposes of clause (b),
"the date on which the supplier receives the payment"
shall be the date on which the payment is entered in
his books of account or the date on which the payment
is credited to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is
paid or liable to be paid on reverse charge basis, the
time of supply shall be the earliest of the following
dates, namely:—
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the books
of account of the recipient or the date on which
the payment is debited in his bank account,
whichever is earlier; or
(c) the date immediately following thirty days
from the date of issue of invoice or any other
document, by whatever name called, in lieu
thereof by the supplier:
Provided that where it is not possible to
determine the time of supply under clause (a) or clause
(b) or clause (c), the time of supply shall be the date
of entry in the books of account of the recipient of
supply.
(4) In case of supply of vouchers by a supplier,
the time of supply shall be-
(a) the date of issue of voucher, if the supply
is identifiable at that point; or
(b) the date of redemption of voucher, in all
other cases.
(5) Where it is not possible to determine the
time of supply under the provisions of sub-section (2)
or sub-section (3) or sub-section (4), the time of
supply shall—
(a) in a case where a periodical return has to
be filed, be the date on which such return is to
be filed; or
561
PART–II]
LA GAZETTE DE L'ETAT
(b) in any other case, be the date on which the
tax is paid.
(6) The time of supply to the extent it relates to
an addition in the value of supply by way of interest,
late fee or penalty for delayed payment of any
consideration shall be the date on which the supplier
receives such addition in value.
13. (1) The liability to pay tax on services shall
arise at the time of supply, as determined in
accordance with the provisions of this section.
(2) The time of supply of services shall be the
earliest of the following dates, namely:—
(a) the date of issue of invoice by the supplier,
if the invoice is issued within the period
prescribed under sub-section (2) of section 31
or the date of receipt of payment, whichever is
earlier; or
(b) the date of provision of service, if the
invoice is not issued within the period prescribed
under sub-section (2) of section 31 or the date
of receipt of payment, whichever is earlier; or
(c) the date on which the recipient shows the
receipt of services in his books of account, in a
case where the provisions of clause (a) or clause
(b) do not apply:
Provided that where the supplier of taxable
service receives an amount upto one thousand rupees
in excess of the amount indicated in the tax invoice,
the time of supply to the extent of such excess amount
shall, at the option of the said supplier, be the date of
issue of invoice relating to such excess amount.
Explanation.—For the purposes of clauses (a)
and (b)-
(i) the supply shall be deemed to have been
made to the extent it is covered by the invoice
or, as the case may be, the payment;
Time of
supply of
services.
562
LA GAZETTE DE L'ETAT
[PART–II
(ii) "the date of receipt of payment" shall be
the date on which the payment is entered in the
books of account of the supplier or the date on
which the payment is credited to his bank
account, whichever is earlier.
(3) In case of supplies in respect of which tax is
paid or liable to be paid on reverse charge basis, the
time of supply shall be the earlier of the following
dates, namely:—
(a) the date of payment as entered in the books
of account of the recipient or the date on which
the payment is debited in his bank account,
whichever is earlier; or
(b) the date immediately following sixty days
from the date of issue of invoice or any other
document, by whatever name called, in lieu
thereof by the supplier:
Provided that where it is not possible to
determine the time of supply under clause (a) or clause
(b), the time of supply shall be the date of entry in the
books of account of the recipient of supply:
Provided further that in case of supply by
associated enterprises, where the supplier of service
is located outside India, the time of supply shall be the
date of entry in the books of account of the recipient
of supply or the date of payment, whichever is earlier.
(4) In case of supply of vouchers by a supplier,
the time of supply shall be—
(a) the date of issue of voucher, if the supply
is identifiable at that point; or
(b) the date of redemption of voucher, in all
other cases.
563
PART–II]
LA GAZETTE DE L'ETAT
(5) Where it is not possible to determine the
time of supply under the provisions of sub-section (2)
or sub-section (3) or sub-section (4), the time of
supply shall—
(a) in a case where a periodical return has to
be filed, be the date on which such return is to
be filed; or
(b) in any other case, be the date on which the
tax is paid.
(6) The time of supply to the extent it relates to
an addition in the value of supply by way of interest,
late fee or penalty for delayed payment of any
consideration shall be the date on which the supplier
receives such addition in value.
14. Notwithstanding
anything contained in
section 12 or section 13, the time of supply, where
there is a change in the rate of tax in respect of goods
or services or both, shall be determined in the
following manner, namely:—
(a) in case the goods or services or both have
been supplied before the change in rate of tax,—
(i) where the invoice for the same has been
issued and the payment is also received after
the change in rate of tax, the time of supply
shall be the date of receipt of payment or the
date of issue of invoice, whichever is earlier;
or
(ii) where the invoice has been issued prior
to the change in rate of tax but payment is
received after the change in rate of tax, the
time of supply shall be the date of issue of
invoice; or
(iii) where the payment has been received
before the change in rate of tax, but the
invoice for the same is issued after the change
in rate of tax, the time of supply shall be the
date of receipt of payment;
Change in
rate of tax in
respect of
supply of
goods or
services.
564
LA GAZETTE DE L'ETAT
[PART–II
(b) in case the goods or services or both have
been supplied after the change in rate of tax,—
(i) where the payment is received after the
change in rate of tax but the invoice has been
issued prior to the change in rate of tax, the
time of supply shall be the date of receipt of
payment; or
(ii) where the invoice has been issued and
payment is received before the change in rate
of tax, the time of supply shall be the date of
receipt of payment or date of issue of invoice,
whichever is earlier; or
(iii) where the invoice has been issued after
the change in rate of tax but the payment is
received before the change in rate of tax, the
time of supply shall be the date of issue of
invoice:
Provided that the date of receipt of payment shall
be the date of credit in the bank account if such credit
in the bank account is after four working days from the
date of change in the rate of tax.
Explanation.—For the purposes of this section,
"the date of receipt of payment" shall be the date on
which the payment is entered in the books of account
of the supplier or the date on which the payment is
credited to his bank account, whichever is earlier.
15. (1) The value of a supply of goods or
services or both shall be the transaction value, which
is the price actually paid or payable for the said supply
of goods or services or both where the supplier and
the recipient of the supply are not related and the price
is the sole consideration for the supply.
(2) The value of supply shall include—
(a) any taxes, duties, cesses, fees and charges
levied under any law for the time being in force
other than this Act, the Central Goods and
Value of
taxable
supply.
565
PART–II]
LA GAZETTE DE L'ETAT
Services Tax Act and the Goods and Services Tax
(Compensation to States) Act, if charged separately
by the supplier;
(b) any amount that the supplier is liable to pay
in relation to such supply but which has been
incurred by the recipient of the supply and not
included in the price actually paid or payable for
the goods or services or both;
(c) incidental expenses, including commission
and packing, charged by the supplier to the
recipient of a supply and any amount charged for
anything done by the supplier in respect of the
supply of goods or services or both at the time
of, or before delivery of goods or supply of
services;
(d) interest or late fee or penalty for delayed
payment of any consideration for any supply; and
(e) subsidies directly linked to the price
excluding subsidies provided by the Central
Government and State Governments.
Explanation.—For the purposes of this sub-
section, the amount of subsidy shall be included
in the value of supply of the supplier who
receives the subsidy.
(3) The value of the supply shall not include any
discount which is given—
(a) before or at the time of the supply if such
discount has been duly recorded in the invoice
issued in respect of such supply; and
(b) after the supply has been effected, if-
(i) such discount is established in terms of
an agreement entered into at or before the time
of such supply and specifically linked to relevant
invoices; and
566
LA GAZETTE DE L'ETAT
[PART–II
(ii) input tax credit as is attributable to
the discount on the basis of document issued
by the supplier has been reversed by the
recipient of the supply.
(4) Where the value of the supply of goods or
services or both cannot be determined under
sub-section (1), the same shall be determined in such
manner as may be prescribed.
(5) Notwithstanding anything contained in
sub-section (1) or sub-section (4), the value of such
supplies as may be notified by the Government on the
recommendations of the Council shall be determined
in such manner as may be prescribed.
Explanation. —For the purposes of this Act,-
(a) persons shall be deemed to be "related
persons'' if -
(i) such persons are officers or directors
of one another's businesses;
(ii) such persons are legally recognised
partners in business;
(iii) such persons are employer and
employee;
(iv) any person directly or indirectly
owns, controls or holds twenty-five per cent.
or more of the outstanding voting stock or
shares of both of them;
(v) one of them directly or indirectly
controls the other;
(vi) both of them are directly or
indirectly controlled by a third person;
(vii) together they directly or indirectly
control a third person; or
(viii) they are members of the same
family;
567
PART–II]
LA GAZETTE DE L'ETAT
(b) the term "person" also includes legal
persons.
(c) persons who are associated in the business
of one another in that one is the sole agent or
sole distributor or sole concessionaire, howsoever
described, of the other, shall be deemed to be
related.
CHAPTER V
INPUT TAX CREDIT
16. (1) Every registered person shall, subject to
such conditions and restrictions as may be prescribed
and in the manner specified in section 49, be entitled
to take credit of input tax charged on any supply of
goods or services or both to him which are used or
intended to be used in the course or furtherance of his
business and the said amount shall be credited to the
electronic credit ledger of such person.
(2) Notwithstanding anything contained in this
section, no registered person shall be entitled to the
credit of any input tax in respect of any supply of
goods or services or both to him unless,—
(a) he is in possession of a tax invoice or debit
note issued by a supplier registered under this
Act, or such other tax paying documents as may
be prescribed;
(b) he has received the goods or services or
both.
Explanation.—For the purposes of this
clause, it shall be deemed that the registered
person has received the goods 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;
Eligibility
and
conditions
for taking
input tax
credit.
568
LA GAZETTE DE L'ETAT
[PART–II
(c) subject to the provisions of section 41, the
tax charged in respect of such supply has been
actually paid to the Government, either in cash
or through utilisation of input tax credit
admissible in respect of the said supply; and
(d) he has furnished the return under section 39:
Provided that where the goods against an invoice
are received in lots or instalments, the registered
person shall be entitled to take credit upon receipt of
the last lot or instalment:
Provided further that where a recipient fails to
pay to the supplier of goods or services or both, other
than the supplies on which tax is payable on reverse
charge basis, the amount towards the value of supply
along with tax payable thereon within a period of one
hundred and eighty days from the date of issue of
invoice by the supplier, an amount equal to the input
tax credit availed by the recipient shall be added to his
output tax liability, along with interest thereon, in such
manner as may be prescribed:
Provided also that the recipient shall be entitled
to avail of the credit of input tax on payment made by
him of the amount towards the value of supply of goods
or services or both along with tax payable thereon.
(3) Where the registered person has claimed
depreciation on the tax component of the cost of
capital goods and plant and machinery under the
provisions of the Income-tax Act, 1961, the input tax
credit on the said tax component shall not be allowed.
(4) A registered person shall not be entitled to
take input tax credit in respect of any invoice or debit
note for supply of goods or services or both after the
due date of furnishing of the return under section 39
for the month of September following the end of
financial year to which such invoice or invoice relating
to such debit note pertains or furnishing of the relevant
annual return, whichever is earlier.
Central
Act 43
of 1961.
569
PART–II]
LA GAZETTE DE L'ETAT
17. (1) Where the goods or services or both are
used by the registered person partly for the purpose
of any business and partly for other purposes, the
amount of credit shall be restricted to so much of the
input tax as is attributable to the purposes of his
business.
(2) Where the goods or services or both are used
by the registered person partly for effecting taxable
supplies including zero-rated supplies under this Act
or under the Integrated Goods and Services Tax Act and
partly for effecting exempt supplies under the said
Acts, the amount of credit shall be restricted to so
much of the input tax as is attributable to the said
taxable supplies including zero-rated supplies.
(3) The value of exempt supply under sub-section
(2) shall be such as may be prescribed, and shall
include supplies on which the recipient is liable to pay
tax on reverse charge basis, transactions in securities,
sale of land and, subject to clause (b) of paragraph 5
of Schedule II, sale of building.
(4) A banking company or a financial institution
including a non-banking financial company, engaged in
supplying services by way of accepting deposits,
extending loans or advances shall have the option to
either comply with the provisions of sub-section (2),
or avail of, every month, an amount equal to fifty per
cent. of the eligible input tax credit on inputs, capital
goods and input services in that month and the rest
shall lapse:
Provided that the option once exercised shall not
be withdrawn during the remaining part of the financial
year:
Provided further that the restriction of fifty per
cent. shall not apply to the tax paid on supplies made
by one registered person to another registered person
having the same Permanent Account Number.
Apportionment
of credit and
blocked
credits.
570
LA GAZETTE DE L'ETAT
[PART–II
(5) Notwithstanding anything contained in sub-
section (1) of section 16 and sub-section (1) of
section 18, input tax credit shall not be available in
respect of the following, namely:—
(a) motor vehicles and other conveyances
except when they are used—
(i) for making the following taxable
supplies, namely:—
(A) further supply of such vehicles or
conveyances; or
(B) transportation of passengers; or
(C) imparting training on driving,
flying, navigating such vehicles or
conveyances;
(ii) for transportation of goods;
(b) the following supply of goods or services
or both:-
(i) food and beverages, outdoor catering,
beauty treatment, health services, cosmetic
and plastic surgery except where an inward
supply of goods or services or both of a
particular category 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;
(iii) rent-a-cab, life insurance and health
insurance except where -
(A) the Government notifies the
services which are obligatory for an
employer to provide to its employees
under any law for the time being in
force; or
571
PART–II]
LA GAZETTE DE L'ETAT
(B) such inward supply of goods or
services or both of a particular category
is used by a registered person for making
an outward taxable supply of the same
category of goods or services or both or
as part of a taxable composite or mixed
supply; and
(iv)
travel
benefits
extended
to
employees on vacation such as leave or home
travel concession;
(c) works contract services when supplied for
construction of an immovable property (other
than plant and machinery) except where it is an
input service for further supply of works contract
service;
(d) goods or services or both received by a
taxable person for construction of an immovable
property (other than plant and machinery) on his
own account including when such goods or
services or both are used in the course or
furtherance of business;
Explanation.—For the purposes of clauses (c)
and (d), the expression "construction" includes re-
construction, renovation, additions or alterations or
repairs, to the extent of capitalisation, to the said
immovable property;
(e) goods or services or both on which tax has
been paid under section 10;
(f) goods or services or both received by a non-
resident taxable person except on goods imported
by him;
(g) goods or services or both used for
personal consumption;
(h) goods lost, stolen, destroyed, written off
or disposed of by way of gift or free samples;
and
572
LA GAZETTE DE L'ETAT
[PART–II
(i) any tax paid in accordance with the
provisions of sections 74, 129 and 130.
(6) The Government may prescribe the manner in
which the credit referred to in sub-sections (1) and (2)
may be attributed.
Explanation.— For the purposes of this Chapter
and Chapter VI, the expression "plant and machinery"
means apparatus, equipment, and machinery fixed to
earth by foundation or structural support that are used
for making outward supply of goods or services or both
and includes such foundation and structural supports
but excludes-
(i) land, building or any other civil
structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory
premises.
18. (1) Subject to such conditions and
restrictions as may be prescribed—
(a) a person who has applied for registration
under this Act within thirty days from the date on
which he becomes liable to registration and has
been granted such registration shall be entitled
to take credit of input tax in respect of inputs
held in stock and inputs contained in semi-
finished or finished goods held in stock on the
day immediately preceding the date from which
he becomes liable to pay tax under the provisions
of this Act;
(b) a person who takes registration under sub-
section (3) of section 25 shall be entitled to
take credit of input tax in respect of inputs held
in stock and inputs contained in semi-finished or
finished goods held in stock on the day
immediately preceding the date of grant of
registration;
Availability
of credit in
special
circumstances.
573
PART–II]
LA GAZETTE DE L'ETAT
(c) where any registered person ceases to pay
tax under section 10, he shall be entitled to take
credit of input tax in respect of inputs held in
stock, inputs contained in semi-finished or
finished goods held in stock and on capital goods
on the day immediately preceding the date from
which he becomes liable to pay tax under section 9:
Provided that the credit on capital goods shall
be reduced by such percentage points as may be
prescribed;
(d) where an exempt supply of goods or
services or both by a registered person becomes
a taxable supply, such person shall be entitled to
take credit of input tax in respect of inputs held
in stock and inputs contained in semi-finished or
finished goods held in stock relatable to such
exempt supply and on capital goods exclusively
used for such exempt supply on the day
immediately preceding the date from which such
supply becomes taxable:
Provided that the credit on capital goods shall
be reduced by such percentage points as may be
prescribed.
(2) A registered person shall not be entitled to
take input tax credit under sub-section (1) in respect
of any supply of goods or services or both to him after
the expiry of one year from the date of issue of tax
invoice relating to such supply.
(3) Where there is a change in the constitution
of a registered person on account of sale, merger,
demerger, amalgamation, lease or transfer of the
business with the specific provisions for transfer of
liabilities, the said registered person shall be allowed
to transfer the input tax credit which remains
unutilised in his electronic credit ledger to such sold,
merged, demerged, amalgamated, leased or transferred
business in such manner as may be prescribed.
574
LA GAZETTE DE L'ETAT
[PART–II
(4) Where any registered person who has availed
of input tax credit opts to pay tax under section 10 or,
where the goods or services or both supplied by him
become wholly exempt, he shall pay an amount, by way
of debit in the electronic credit ledger or electronic
cash ledger, equivalent to the credit of input tax in
respect of inputs held in stock and inputs contained in
semi-finished or finished goods held in stock and on
capital goods, reduced by such percentage points as
may be prescribed, on the day immediately preceding
the date of exercising of such option or, as the case
may be, the date of such exemption:
Provided that after payment of such amount, the
balance of input tax credit, if any, lying in his
electronic credit ledger shall lapse.
(5) The amount of credit under sub-section (1)
and the amount payable under sub-section (4) shall be
calculated in such manner as may be prescribed.
(6) In case of supply of capital goods or plant and
machinery, on which input tax credit has been taken,
the registered person shall pay an amount equal to the
input tax credit taken on the said capital goods or plant
and machinery reduced by such percentage points as
may be prescribed or the tax on the transaction value
of such capital goods or plant and machinery
determined under section 15, whichever is higher:
Provided that where refractory bricks, moulds and
dies, jigs and fixtures are supplied as scrap, the taxable
person may pay tax on the transaction value of such
goods determined under section 15.
19. (1) The principal shall, subject to such
conditions and restrictions as may be prescribed, be
allowed input tax credit on inputs sent to a job-worker
for job-work.
Taking input
tax credit in
respect of
inputs and
capital goods
sent for job
work.
575
PART–II]
LA GAZETTE DE L'ETAT
(2) Notwithstanding anything contained in
clause (b) of sub-section (2) of section 16, the
principal shall be entitled to take credit of input tax
on inputs even if the inputs are directly sent to a job-
worker for job-work without being first brought to his
place of business.
(3) Where the inputs sent for job-work are not
received back by the principal after completion of job-
work or otherwise or are not supplied from the place
of business of the job-worker in accordance with
clause (a) or clause (b) of sub-section (1) of section
143 within one year of being sent out, it shall be
deemed that such inputs had been supplied by the
principal to the job-worker on the day when the said
inputs were sent out:
Provided that where the inputs are sent directly
to a job-worker, the period of one year shall be
counted from the date of receipt of inputs by the job-
worker.
(4) The principal shall, subject to such
conditions and restrictions as may be prescribed, be
allowed input tax credit on capital goods sent to a job-
worker for job-work.
(5) Notwithstanding anything contained in clause
(b) of sub-section (2) of section 16, the principal shall
be entitled to take credit of input tax on capital goods
even if the capital goods are directly sent to a job-
worker for job-work without being first brought to his
place of business.
(6) Where the capital goods sent for job-work
are not received back by the principal within a period
of three years of being sent out, it shall be deemed that
such capital goods had been supplied by the principal
to the job-worker on the day when the said capital
goods were sent out:
576
LA GAZETTE DE L'ETAT
[PART–II
Provided that where the capital goods are sent
directly to a job-worker, the period of three years shall
be counted from the date of receipt of capital goods
by the job-worker.
(7) Nothing contained in sub-section (3) or sub-
section (6) shall apply to moulds and dies, jigs and
fixtures, or tools sent out to a job-worker for job-
work.
Explanation.— For the purpose of this section,
"principal" means the person referred to in section 143.
20. (1) The Input Service Distributor shall
distribute the credit of State tax as State tax or
integrated tax and integrated tax as integrated tax or
State tax, by way of issue of document containing the
amount of input tax credit being distributed in such
manner as may be prescribed.
(2) The Input Service Distributor may distribute
the credit subject to the following conditions,
namely:—
(a) the credit can be distributed to the
recipients
of
credit
against
a
document
containing such details as may be prescribed;
(b) the amount of the credit distributed shall
not exceed the amount of credit available for
distribution;
(c) the credit of tax paid on input services
attributable to a recipient of credit shall be
distributed only to that recipient;
(d) the credit of tax paid on input services
attributable to more than one recipient of credit
shall be distributed amongst such recipients to
whom the input service is attributable and such
distribution shall be pro rata on the basis of the
turnover in a State or turnover in a Union
Manner of
distribution
of credit by
Input
Service
Distributor.
577
PART–II]
LA GAZETTE DE L'ETAT
territory of such recipient, during the relevant
period, to the aggregate of the turnover of all
such recipients to whom such input service is
attributable and which are operational in the
current year, during the said relevant period;
(e) the credit of tax paid on input services
attributable to all recipients of credit shall be
distributed amongst such recipients and such
distribution shall be pro rata on the basis of the
turnover in a State or turnover in a Union
territory of such recipient, during the relevant
period, to the aggregate of the turnover of all
recipients and which are operational in the
current year, during the said relevant period.
Explanation.—For the purposes of this
section,—
(a) the "relevant period" shall be—
(i) if the recipients of credit have turnover
in their States or Union territories in the
financial year preceding the year during which
credit is to be distributed, the said financial
year; or
(ii) if some or all recipients of the credit
do not have any turnover in their States or
Union territories in the financial year
preceding the year during which the credit is
to be distributed, the last quarter for which
details of such turnover of all the recipients
are available, previous to the month during
which credit is to be distributed;
(b) the expression "recipient of credit" means
the supplier of goods or services or both having
the same Permanent Account Number as that of
the Input Service Distributor;
(c) the term "turnover", in relation to any
registered person engaged in the supply of
taxable goods as well as goods not taxable under
this Act, means the value of turnover, reduced by
578
LA GAZETTE DE L'ETAT
[PART–II
the amount of any duty or tax levied under entry
84 of List I of the Seventh Schedule to the
Constitution and entry 51 and 54 of List II of the
said Schedule.
21. Where the Input Service Distributor
distributes the credit in contravention of the
provisions contained in section 20 resulting in excess
distribution of credit to one or more recipients of
credit, the excess credit so distributed shall be
recovered from such recipients along with interest, and
the provisions of section 73 or section 74, as the case
may
be,
shall,
mutatis
mutandis,
apply
for
determination of amount to be recovered.
CHAPTER VI
REGISTRATION
22. (1) Every supplier making a taxable supply of
goods or services or both in the State shall be liable
to be registered under this Act if his aggregate
turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable
supplies of goods or services or both from any of the
special category States, he shall be liable to be
registered if his aggregate turnover in a financial year
exceeds ten lakh rupees.
(2) Every person who, on the day immediately
preceding the appointed day, is registered or holds a
licence under an existing law, shall be liable to be
registered under this Act with effect from the
appointed day.
(3) Where a business carried on by a taxable
person registered under this Act is transferred, whether
on account of succession or otherwise, to another
person as a going concern, the transferee or the
successor, as the case may be, shall be liable to be
registered with effect from the date of such transfer
or succession.
Manner of
recovery of
credit
distributed in
excess.
Persons
liable for
registration.
579
PART–II]
LA GAZETTE DE L'ETAT
(4) Notwithstanding anything contained in
sub-sections (1) and (3), in a case of transfer pursuant
to sanction of a scheme or an arrangement for
amalgamation or, as the case may be, de-merger of two
or more companies pursuant to an order of a High
Court, Tribunal or otherwise, the transferee shall be
liable to be registered, with effect from the date on
which the Registrar of Companies issues a certificate
of incorporation giving effect to such order of the
High Court or Tribunal.
Explanation.—For
the
purposes
of
this
section,—
(i) the expression "aggregate turnover" shall
include all supplies made by the taxable person,
whether on his own account or made on behalf
of all his principals;
(ii) the supply of goods, after completion of
job-work, by a registered job-worker shall be
treated as the supply of goods by the principal
referred to in section 143, and the value of such
goods shall not be included in the aggregate
turnover of the registered job-worker;
(iii) the expression "special category States"
shall mean the States as specified in sub-clause
(g) of clause (4) of article 279A of the
Constitution.
23. (1) The following persons shall not be liable
to registration, namely:—
(a) any person engaged exclusively in the
business of supplying goods or services or both
that are not liable to tax or wholly exempt from
tax under this Act or under the Integrated Goods
and Services Tax Act;
(b) an agriculturist, to the extent of supply of
produce out of cultivation of land.
Persons not
liable for
registration.
580
LA GAZETTE DE L'ETAT
[PART–II
(2) The Government may, on the recommendations
of the Council, by notification, specify the category
of persons who may be exempted from obtaining
registration under this Act.
24. Notwithstanding anything contained in
sub-section (1) of section 22, the following categories
of persons shall be required to be registered under this
Act,-
(i) persons making any inter-State
taxable supply;
(ii) casual taxable persons making
taxable supply;
(iii) persons who are required to pay tax
under reverse charge;
(iv) persons who are required to pay tax
under sub-section (5) of section 9;
(v) non-resident taxable persons making
taxable supply;
(vi) persons who are required to deduct
tax under section 51, whether or not separately
registered under this Act;
(vii) persons who make taxable supply of
goods or services or both on behalf of other
taxable persons whether as an agent or
otherwise;
(viii) Input Service Distributor, whether
or not separately registered under this Act;
(ix) persons who supply goods or
services or both, other than supplies specified
under sub-section (5) of section 9, through
such electronic commerce operator who is
required to collect tax at source under section 52;
(x) every electronic commerce operator;
Compulsory
registration
in certain
cases.
581
PART–II]
LA GAZETTE DE L'ETAT
(xi) every person supplying online
information and data base access or retrieval
services from a place outside India to a person
in India, other than a registered person; and
(xii) such other person or class of
persons as may be notified by the Government
on the recommendations of the Council.
25. (1) Every person who is liable to be
registered under section 22 or section 24 shall apply
for registration within thirty days from the date on
which he becomes liable to registration, in such manner
and subject to such conditions as may be prescribed:
Provided that a casual taxable person or a non-
resident taxable person shall apply for registration at
least five days prior to the commencement of business.
Explanation.— Every person who makes a
supply from the territorial waters of India shall obtain
registration in the State where the nearest point of the
appropriate baseline is located in the State.
(2) A person seeking registration under this Act
shall be granted a single registration:
Provided that a person having multiple business
verticals in the State may be granted a separate
registration for each business vertical, subject to such
conditions as may be prescribed.
(3) A person, though not liable to be registered
under section 22 or section 24 may get himself
registered voluntarily, and all provisions of this Act,
as are applicable to a registered person, shall apply to
such person.
(4) A person who has obtained or is required to
obtain more than one registration, whether in one State
or Union territory or more than one State or Union
territory shall, in respect of each such registration, be
treated as distinct persons for the purposes of this
Act.
Procedure
for
registration.
582
LA GAZETTE DE L'ETAT
[PART–II
(5) Where a person who has obtained or is
required to obtain registration in a State or Union
territory in respect of an establishment, has an
establishment in another State or Union territory, then
such establishments shall be treated as establishments
of distinct persons for the purposes of this Act.
(6) Every person shall have a Permanent Account
Number issued under the Income-tax Act, 1961 in
order to be eligible for grant of registration:
Provided that a person required to deduct tax
under section 51 may have, in lieu of a Permanent
Account Number, a Tax Deduction and Collection
Account Number issued under the said Act in order to
be eligible for grant of registration.
(7) Notwithstanding anything contained in sub-
section (6), a non-resident taxable person may be
granted registration under sub-section (1) on the basis
of such other documents as may be prescribed.
(8) Where a person who is liable to be registered
under this Act fails to obtain registration, the proper
officer may, without prejudice to any action which may
be taken under this Act or under any other law for the
time being in force, proceed to register such person
in such manner as may be prescribed.
(9) Notwithstanding
anything
contained
in
sub-section (1),—
(a) any specialised agency of the United
Nations
Organisation
or
any
Multilateral
Financial Institution and Organisation notified
under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of
foreign countries; and
(b) any other person or class of persons, as
may be notified by the Commissioner,
Central
Act 43
of 1961.
Central
Act 46
of 1947.
583
PART–II]
LA GAZETTE DE L'ETAT
shall be granted a Unique Identity Number in such
manner and for such purposes, including refund of
taxes on the notified supplies of goods or services or
both received by them, as may be prescribed.
(10) The registration or the Unique Identity
Number shall be granted or rejected after due verification
in such manner and within such period as may be
prescribed.
(11) A certificate of registration shall be issued
in such form and with effect from such date as may
be prescribed.
(12) A registration or a Unique Identity Number
shall be deemed to have been granted after the expiry
of the period prescribed under sub-section (10), if no
deficiency has been communicated to the applicant
within that period.
26. (1) The grant of registration or the Unique
Identity Number under the Central Goods and Services
Tax Act shall be deemed to be a grant of registration
or the Unique Identity Number under this Act subject
to the condition that the application for registration or
the Unique Identity Number has not been rejected
under this Act within the time specified in sub-section (10)
of section 25.
(2) Notwithstanding anything contained in
sub-section (10) of section 25, any rejection of
application for registration or the Unique Identity
Number under the Central Goods and Services Tax Act
shall be deemed to be a rejection of application for
registration under this Act.
27. (1) The certificate of registration issued to
a casual taxable person or a non-resident taxable
person shall be valid for the period specified in the
application for registration or ninety days from the
effective date of registration, whichever is earlier and
such person shall make taxable supplies only after the
issuance of the certificate of registration:
Deemed
registration.
Special
provisions
relating to
casual taxable
person and
non-resident
taxable
person.
584
LA GAZETTE DE L'ETAT
[PART–II
Provided that the proper officer may, on
sufficient cause being shown by the said taxable
person, extend the said period of ninety days by a
further period not exceeding ninety days.
(2) A casual taxable person or a non-resident
taxable person shall, at the time of submission of
application for registration under sub-section (1) of
section 25, make an advance deposit of tax in an
amount equivalent to the estimated tax liability of such
person for the period for which the registration is
sought:
Provided that where any extension of time is
sought under sub-section (1), such taxable person shall
deposit an additional amount of tax equivalent to the
estimated tax liability of such person for the period
for which the extension is sought.
(3) The amount deposited under sub-section (2)
shall be credited to the electronic cash ledger of such
person and shall be utilised in the manner provided
under section 49.
28. (1) Every registered person and a person to
whom a Unique Identity Number has been assigned
shall inform the proper officer of any changes in the
information furnished at the time of registration or
subsequent thereto, in such form and manner and
within such period as may be prescribed.
(2) The proper officer may, on the basis of
information furnished under sub-section (1) or as
ascertained by him, approve or reject amendments in
the registration particulars in such manner and within
such period as may be prescribed:
Provided that approval of the proper officer shall
not be required in respect of amendment of such
particulars as may be prescribed:
Provided further that the proper officer shall not
reject
the
application
for
amendment
in
the
registration particulars without giving the person an
opportunity of being heard.
Amendment
of
registration.
585
PART–II]
LA GAZETTE DE L'ETAT
(3) Any rejection or approval of amendments
under the Central Goods and Services Tax Act shall be
deemed to be a rejection or approval under this Act.
29. (1) The proper officer may, either on his own
motion or on an application filed by the registered
person or by his legal heirs, in case of death of such
person, cancel the registration, in such manner and
within such period as may be prescribed, having regard
to the circumstances where,—
(a) the business has been discontinued,
transferred fully for any reason including death
of the proprietor, amalgamated with other legal
entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of
the business; or
(c) the taxable person, other than the person
registered under sub-section (3) of section 25,
is no longer liable to be registered under section
22 or section 24.
(2)
The
proper
officer
may
cancel
the
registration of a person from such date, including any
retrospective date, as he may deem fit, where,—
(a) a registered person has contravened such
provisions of the Act or the rules made
thereunder as may be prescribed; or
(b) a person paying tax under section 10 has
not furnished returns for three consecutive tax
periods; or
(c) any registered person, other than a person
specified in clause (b), has not furnished returns
for a continuous period of six months; or
(d)
any person who has taken voluntary
registration under sub-section (3) of section 25 has
not commenced business within six months from the
date of registration; or
Cancellation
of
registration.
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LA GAZETTE DE L'ETAT
[PART–II
(e) registration has been obtained by means of
fraud, wilful misstatement or suppression of
facts:
Provided that the proper officer shall not
cancel the registration without giving the person
an opportunity of being heard.
(3) The cancellation of registration under this
section shall not affect the liability of the person to
pay tax and other dues under this Act or to discharge
any obligation under this Act or the rules made
thereunder for any period prior to the date of
cancellation whether or not such tax and other dues are
determined before or after the date of cancellation.
(4) The cancellation of registration under the
Central Goods and Services Tax Act shall be deemed
to be a cancellation of registration under this Act.
(5)
Every registered person whose registration
is cancelled shall pay an amount, by way of debit in
the electronic credit ledger or electronic cash ledger,
equivalent to the credit of input tax in respect of inputs
held in stock and inputs contained in semi-finished or
finished goods held in stock or capital goods or plant
and machinery on the day immediately preceding the
date of such cancellation or the output tax payable on
such goods, whichever is higher, calculated in such
manner as may be prescribed:
Provided that in case of capital goods or plant and
machinery, the taxable person shall pay an amount
equal to the input tax credit taken on the said capital
goods or plant and machinery, reduced by such
percentage points as may be prescribed or the tax on
the transaction value of such capital goods or plant and
machinery under section 15, whichever is higher.
(6) The amount payable under sub-section (5)
shall be calculated in such manner as may be
prescribed.
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30. (1) Subject to such conditions as may be
prescribed, any registered person, whose registration
is cancelled by the proper officer on his own motion,
may apply to such officer for revocation of
cancellation of the registration in the prescribed
manner within thirty days from the date of service of
the cancellation order.
(2) The proper officer may, in such manner and
within such period as may be prescribed, by order,
either revoke cancellation of the registration or reject
the application:
Provided that the application for revocation of
cancellation of registration shall not be rejected unless
the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration
under the Central Goods and Services Tax Act shall be
deemed to be a revocation of cancellation of
registration under this Act.
CHAPTER VII
TAX INVOICE, CREDIT AND DEBIT NOTES
31. (1) A registered person supplying taxable
goods shall, before or at the time of,—
(a) removal of goods for supply to the
recipient, where the supply involves movement of
goods; or
(b) delivery of goods or making available
thereof to the recipient, in any other case,
issue a tax invoice showing the description, quantity
and value of goods, the tax charged thereon and such
other particulars as may be prescribed:
Provided that the Government may, on the
recommendations of the Council, by notification,
specify the categories of goods or supplies in respect
of which a tax invoice shall be issued, within such time
and in such manner as may be prescribed.
Revocation
of
cancellation
of
registration.
Tax invoice.
588
LA GAZETTE DE L'ETAT
[PART–II
(2) A registered person supplying taxable services
shall, before or after the provision of service but
within a prescribed period, issue a tax invoice, showing
the description, value, tax charged thereon and such
other particulars as may be prescribed:
Provided that the Government may, on the
recommendations of the Council, by notification and
subject to such conditions as may be mentioned
therein, specify the categories of services in respect
of which—
(a) any other document issued in relation to
the supply shall be deemed to be a tax invoice;
or
(b) tax invoice may not be issued.
(3) Notwithstanding anything contained in sub-
sections (1) and (2)—
(a) a registered person may, within one month
from the date of issuance of certificate of
registration and in such manner as may be
prescribed, issue a revised invoice against the
invoice already issued during the period
beginning with the effective date of registration
till the date of issuance of certificate of
registration to him;
(b) a registered person may not issue a tax
invoice if the value of the goods or services
or both supplied is less than two hundred
rupees subject to such conditions and in
such manner as may be prescribed;
(c) a registered person supplying exempted
goods or services or both or paying tax under the
provisions of section 10 shall issue, instead of
a tax invoice, a bill of supply containing such
particulars and in such manner as may be
prescribed:
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Provided that the registered person may not
issue a bill of supply if the value of the goods
or services or both supplied is less than two
hundred rupees subject to such conditions and in
such manner as may be prescribed;
(d) a registered person shall, on receipt of
advance payment with respect to any supply of
goods or services or both, issue a receipt
voucher or any other document, containing such
particulars as may be prescribed, evidencing
receipt of such payment;
(e) where, on receipt of advance payment with
respect to any supply of goods or services or
both the registered person issues a receipt
voucher, but subsequently no supply is made and
no tax invoice is issued in pursuance thereof, the
said registered person may issue to the person
who had made the payment, a refund voucher
against such payment;
(f) a registered person who is liable to pay tax
under sub-section (3) or sub-section (4) of
section 9 shall issue an invoice in respect of
goods or services or both received by him from
the supplier who is not registered on the date of
receipt of goods or services or both;
(g) a registered person who is liable to pay
tax under sub-section (3) or sub-section (4) of
section 9 shall issue a payment voucher at the
time of making payment to the supplier.
(4) In case of continuous supply of goods, where
successive statements of accounts or successive
payments are involved, the invoice shall be issued
before or at the time each such statement is issued or,
as the case may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-
section (3), in case of continuous supply of services,—
(a) where the due date of payment is
ascertainable from the contract, the invoice shall
be issued on or before the due date of payment;
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[PART–II
(b) where the due date of payment is not
ascertainable from the contract, the invoice shall
be issued before or at the time when the supplier
of service receives the payment;
(c) where the payment is linked to the
completion of an event, the invoice shall be
issued on or before the date of completion of
that event.
(6) In a case where the supply of services ceases
under a contract before the completion of the supply,
the invoice shall be issued at the time when the supply
ceases and such invoice shall be issued to the extent
of the supply made before such cessation.
(7) Notwithstanding anything contained in sub-
section (1), where the goods being sent or taken on
approval for sale or return are removed before the
supply takes place, the invoice shall be issued
before or at the time of supply or six months from
the date of removal, whichever is earlier.
Explanation.—For
the
purposes
of
this
section, the expression "tax invoice" shall include
any revised invoice issued by the supplier in respect
of a supply made earlier.
32. (1) A person who is not a registered person
shall not collect in respect of any supply of goods
or services or both any amount by way of tax under
this Act.
(2) No registered person shall collect tax
except in accordance with the provisions of this Act
or the rules made thereunder.
33. Notwithstanding anything contained in this
Act or any other law for the time being in force,
where any supply is made for a consideration, every
person who is liable to pay tax for such supply shall
prominently indicate in all documents relating to
assessment, tax invoice and other like documents,
the amount of tax which shall form part of the price
at which such supply is made.
Prohibition
of
unauthorised
collection of
tax.
Amount of
tax to be
indicated in
tax invoice
and other
documents.
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34. (1) Where a tax invoice has been issued for
supply of any goods or services or both and the taxable
value or tax charged in that tax invoice is found to
exceed the taxable value or tax payable in respect of
such supply, or where the goods supplied are returned
by the recipient, or where goods or services or both
supplied are found to be deficient, the registered
person, who has supplied such goods or services or
both, may issue to the recipient a credit note containing
such particulars as may be prescribed.
(2) Any registered person who issues a credit
note in relation to a supply of goods or services or
both shall declare the details of such credit note in the
return for the month during which such credit note has
been issued but not later than September following the
end of the financial year in which such supply was
made, or the date of furnishing of the relevant annual
return, whichever is earlier, and the tax liability shall
be adjusted in such manner as may be prescribed:
Provided that no reduction in output tax liability
of the supplier shall be permitted, if the incidence of
tax and interest on such supply has been passed on to
any other person.
(3) Where a tax invoice has been issued for
supply of any goods or services or both and the taxable
value or tax charged in that tax invoice is found to be
less than the taxable value or tax payable in respect of
such supply, the registered person, who has supplied
such goods or services or both, shall issue to the
recipient a debit note containing such particulars as
may be prescribed.
(4) Any registered person who issues a debit note
in relation to a supply of goods or services or both
shall declare the details of such debit note in the return
for the month during which such debit note has been
issued and the tax liability shall be adjusted in such
manner as may be prescribed.
Credit and
debit notes.
592
LA GAZETTE DE L'ETAT
[PART–II
Explanation.—For the purposes of this Act,
the expression "debit note" shall include a supplementary
invoice.
CHAPTER VIII
ACCOUNTS AND RECORDS
35. (1) Every registered person shall keep and
maintain, at his principal place of business, as
mentioned in the certificate of registration, a true and
correct account of-
(a) production or manufacture of goods;
(b) inward and outward supply of goods or
services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid; and
(f) such other particulars as may be prescribed:
Provided that where more than one place of
business is specified in the certificate of registration,
the accounts relating to each place of business shall
be kept at such places of business:
Provided further that the registered person may
keep and maintain such accounts and other particulars
in electronic form in such manner as may be
prescribed.
(2) Every owner or operator of warehouse or
godown or any other place used for storage of goods
and every transporter, irrespective of whether he is a
registered person or not, shall maintain records of the
consigner, consignee and other relevant details of the
goods in such manner as may be prescribed.
(3) The Commissioner may notify a class of
taxable persons to maintain additional accounts or
documents for such purpose as may be specified
therein.
Accounts
and other
records.
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(4) Where the Commissioner considers that any
class of taxable persons is not in a position to keep
and maintain accounts in accordance with the
provisions of this section, he may, for reasons to be
recorded in writing, permit such class of taxable
persons to maintain accounts in such manner as may
be prescribed.
(5) Every registered person whose turnover
during a financial year exceeds the prescribed limit
shall get his accounts audited by a chartered accountant
or a cost accountant and shall submit a copy of the
audited annual accounts, the reconciliation statement
under sub-section (2) of section 44 and such other
documents in such form and manner as may be
prescribed.
(6) Subject to the provisions of clause (h) of sub-
section (5) of section 17, where the registered person
fails to account for the goods or services or both in
accordance with the provisions of sub-section (1), the
proper officer shall determine the amount of tax
payable on the goods or services or both that are not
accounted for, as if such goods or services or both had
been supplied by such person and the provisions of
section 73 or section74, as the case may be, shall,
mutatis mutandis, apply for determination of such tax.
36. Every registered person required to keep and
maintain books of account or other records in
accordance with the provisions of sub-section (1) of
section 35 shall retain them until the expiry of seventy
two months from the due date of furnishing of annual
return for the year pertaining to such accounts and
records:
Provided that a registered person, who is a party
to an appeal or revision or any other proceedings
before any Appellate Authority or Revisional Authority
or Appellate Tribunal or court, whether filed by him
or by the Commissioner, or is under investigation for
Period of
retention of
accounts.
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LA GAZETTE DE L'ETAT
[PART–II
an offence under Chapter XIX, shall retain the books
of account and other records pertaining to the subject
matter of such appeal or revision or proceedings or
investigation for a period of one year after final
disposal of such appeal or revision or proceedings or
investigation, or for the period specified above,
whichever is later.
CHAPTER IX
RETURNS
37. (1) Every registered person, other than an
Input Service Distributor, a non-resident taxable person
and a person paying tax under the provisions of section
10 or section 51 or section 52, shall furnish,
electronically, in such form and manner as may be
prescribed, the details of outward supplies of goods
or services or both effected during a tax period on or
before the tenth day of the month succeeding the said
tax period and such details shall be communicated to
the recipient of the said supplies within such time and
in such manner as may be prescribed:
Provided that the registered person shall not be
allowed to furnish the details of outward supplies
during the period from the eleventh day to the
fifteenth day of the month succeeding the tax period:
Provided further that the Commissioner may, for
reasons to be recorded in writing, by notification,
extend the time limit for furnishing such details for
such class of taxable persons as may be specified
therein:
Provided also that any extension of time limit
notified by the Commissioner of central tax shall be
deemed to be notified by the Commissioner.
(2) Every registered person who has been
communicated the details under sub-section (3) of
section 38 or the details pertaining to inward supplies
of Input Service Distributor under sub-section (4) of
Furnishing
details of
outward
supplies.
595
PART–II]
LA GAZETTE DE L'ETAT
section 38, shall either accept or reject the details so
communicated, on or before the seventeenth day, but
not before the fifteenth day, of the month succeeding
the tax period and the details furnished by him under
sub-section (1) shall stand amended accordingly.
(3) Any registered person, who has furnished the
details under sub-section (1) for any tax period and
which have remained unmatched under section 42 or
section 43, shall, upon discovery of any error or
omission therein, rectify such error or omission in
such manner as may be prescribed, and shall pay the
tax and interest, if any, in case there is a short payment
of tax on account of such error or omission, in the
return to be furnished for such tax period:
Provided that no rectification of error or omission
in respect of the details furnished under sub-section (1)
shall be allowed after furnishing of the return under
section 39 for the month of September following the end
of the financial year to which such details pertain, or
furnishing of the relevant annual return, whichever is
earlier.
Explanation.—For the purposes of this Chapter,
the expression "details of outward supplies" shall
include details of invoices, debit notes, credit notes
and revised invoices issued in relation to outward
supplies made during any tax period.
38. (1) Every registered person, other than an
Input Service Distributor or a non-resident taxable
person or a person paying tax under the provisions of
section 10 or section 51 or section 52, shall verify,
validate, modify or delete, if required, the details
relating to outward supplies and credit or debit notes
communicated under sub-section (1) of section 37 to
prepare the details of his inward supplies and credit
or debit notes and may include therein, the details of
inward supplies and credit or debit notes received by
him in respect of such supplies that have not been
declared by the supplier under sub-section (1) of
section 37.
Furnishing
details of
inward
supplies.
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[PART–II
(2) Every registered person, other than an Input
Service Distributor or a non-resident taxable person
or a person paying tax under the provisions of section
10 or section 51 or section 52, shall furnish,
electronically, the details of inward supplies of taxable
goods or services or both, including inward supplies
of goods or services or both on which the tax is
payable on reverse charge basis under this Act and
inward supplies of goods or services or both taxable
under the Integrated Goods and Services Tax Act or on
which integrated goods and services tax is payable
under section 3 of the Customs Tariff Act, 1975, and
credit or debit notes received in respect of such
supplies during a tax period after the tenth day but on
or before the fifteenth day of the month succeeding
the tax period in such form and manner as may be
prescribed:
Provided that the Commissioner may, for reasons
to be recorded in writing, by notification, extend the
time limit for furnishing such details for such class
of taxable persons as may be specified therein:
Provided further that any extension of time limit
notified by the Commissioner of central tax shall be
deemed to be notified by the Commissioner.
(3) The details of supplies modified, deleted or
included by the recipient and furnished under sub-
section (2) shall be communicated to the supplier
concerned in such manner and within such time as may
be prescribed.
(4) The details of supplies modified, deleted or
included by the recipient in the return furnished under
sub-section (2) or sub-section (4) of section 39 shall
be communicated to the supplier concerned in such
manner and within such time as may be prescribed.
(5) Any registered person, who has furnished the
details under sub-section (2) for any tax period and
which have remained unmatched under section 42 or
section 43, shall, upon discovery of any error or
Central
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omission therein, rectify such error or omission in the
tax period during which such error or omission is
noticed in such manner as may be prescribed, and shall
pay the tax and interest, if any, in case there is a short
payment of tax on account of such error or omission,
in the return to be furnished for such tax period:
Provided that no rectification of error or
omission in respect of the details furnished under sub-
section (2) shall be allowed after furnishing of the
return under section 39 for the month of September
following the end of the financial year to which such
details pertain, or furnishing of the relevant annual
return, whichever is earlier.
39. (1) Every registered person, other than an
Input Service Distributor or a non-resident taxable
person or a person paying tax under the provisions of
section 10 or section 51 or section 52 shall, for every
calendar month or part thereof, furnish, in such form
and manner as may be prescribed, a return,
electronically, of inward and outward supplies of
goods or services or both, input tax credit availed, tax
payable, tax paid and such other particulars as may be
prescribed on or before the twentieth day of the month
succeeding such calendar month or part thereof.
(2) A registered person paying tax under the
provisions of section 10 shall, for each quarter or part
thereof, furnish, in such form and manner as may be
prescribed, a return, electronically, of turnover in the
State, inward supplies of goods or services or both, tax
payable and tax paid within eighteen days after the end
of such quarter.
(3) Every registered person required to
deduct tax at source under the provisions of
section 51 shall furnish, in such form and manner
as may be prescribed, a return, electronically, for
the month in which such deductions have been made
within ten days after the end of such month.
Furnishing
of returns.
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LA GAZETTE DE L'ETAT
[PART–II
(4) Every taxable person registered as an Input
Service Distributor shall, for every calendar month or
part thereof, furnish, in such form and manner as may
be prescribed, a return, electronically, within thirteen
days after the end of such month.
(5) Every registered non-resident taxable person
shall, for every calendar month or part thereof, furnish,
in such form and manner as may be prescribed, a
return, electronically, within twenty days after the end
of a calendar month or within seven days after the last
day of the period of registration specified under sub-
section (1) of section 27, whichever is earlier.
(6) The Commissioner may, for reasons to be
recorded in writing, by notification, extend the time
limit for furnishing the returns under this section for
such class of registered persons as may be specified
therein:
Provided that any extension of time limit notified
by the Commissioner of central tax shall be deemed
to be notified by the Commissioner.
(7) Every registered person, who is required to
furnish a return under sub-section (1) or sub-section
(2) or sub-section (3) or sub-section (5), shall pay to
the Government the tax due as per such return not later
than the last date on which he is required to furnish
such return.
(8) Every registered person who is required to
furnish a return under sub-section (1) or sub-section
(2) shall furnish a return for every tax period whether
or not any supplies of goods or services or both have
been made during such tax period.
(9) Subject to the provisions of sections 37 and
38, if any registered person after furnishing a return
under sub-section (1) or sub-section (2) or sub-
section (3) or sub-section (4) or sub-section (5)
discovers any omission or incorrect particulars
599
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therein, other than as a result of scrutiny, audit,
inspection or enforcement activity by the tax
authorities, he shall rectify such omission or incorrect
particulars in the return to be furnished for the month
or quarter during which such omission or incorrect
particulars are noticed, subject to payment of interest
under this Act:
Provided that no such rectification of any
omission or incorrect particulars shall be allowed after
the due date for furnishing of return for the month of
September or second quarter following the end of the
financial year, or the actual date of furnishing of
relevant annual return, whichever is earlier.
(10) A registered person shall not be allowed to
furnish a return for a tax period if the return for any
of the previous tax periods has not been furnished by
him.
40. Every registered person who has made
outward supplies in the period between the date on
which he became liable to registration till the date on
which registration has been granted shall declare the
same in the first return furnished by him after grant
of registration.
41. (1) Every registered person shall, subject to
such conditions and restrictions as may be prescribed,
be entitled to take the credit of eligible input tax, as
self-assessed, in his return and such amount shall be
credited on a provisional basis to his electronic credit
ledger.
(2) The credit referred to in sub-section (1) shall
be utilised only for payment of self-assessed output
tax as per the return referred to in the said sub-section.
42. (1) The details of every inward supply
furnished by a registered person (hereafter in this
section referred to as the "recipient") for a tax period
shall, in such manner and within such time as may be
prescribed, be matched—
First return.
Claim of
input tax
credit and
provisional
acceptance
thereof.
Matching,
reversal and
reclaim of
input tax
credit.
600
LA GAZETTE DE L'ETAT
[PART–II
(a) with the corresponding details of outward
supply furnished by the corresponding registered
person (hereafter in this section referred to as
the "supplier") in his valid return for the same tax
period or any preceding tax period;
(b) with the integrated goods and services tax
paid under section 3 of the Customs Tariff
Act, 1975 in respect of goods imported by him; and
(c) for duplication of claims of input tax
credit.
(2) The claim of input tax credit in respect of
invoices or debit notes relating to inward supply that
match with the details of corresponding outward
supply or with the integrated goods and services tax
paid under section 3 of the Customs Tariff Act, 1975
in respect of goods imported by him shall be finally
accepted and such acceptance shall be communicated,
in such manner as may be prescribed, to the recipient.
(3) Where the input tax credit claimed by a
recipient in respect of an inward supply is in excess
of the tax declared by the supplier for the same supply
or the outward supply is not declared by the supplier
in his valid returns, the discrepancy shall be communicated
to both such persons in such manner as may be
prescribed.
(4) The duplication of claims of input tax credit
shall be communicated to the recipient in such manner
as may be prescribed.
(5) The amount in respect of which any
discrepancy is communicated under sub-section (3)
and which is not rectified by the supplier in his valid
return for the month in which discrepancy is
communicated shall be added to the output tax liability
Central
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Central
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of 1975.
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of the recipient, in such manner as may be prescribed,
in his return for the month succeeding the month in
which the discrepancy is communicated.
(6) The amount claimed as input tax credit that
is found to be in excess on account of duplication of
claims shall be added to the output tax liability of the
recipient in his return for the month in which the
duplication is communicated.
(7) The recipient shall be eligible to reduce, from
his output tax liability, the amount added under sub-
section (5), if the supplier declares the details of the
invoice or debit note in his valid return within the time
specified in sub-section (9) of section 39.
(8) A recipient in whose output tax liability any
amount has been added under sub-section (5) or sub-
section (6), shall be liable to pay interest at the rate
specified under sub-section (1) of section 50 on the
amount so added from the date of availing of credit till
the corresponding additions are made under the said
sub-sections.
(9) Where any reduction in output tax liability is
accepted under sub-section (7), the interest paid under
sub-section (8) shall be refunded to the recipient by
crediting the amount in the corresponding head of his
electronic cash ledger in such manner as may be
prescribed:
Provided that the amount of interest to be
credited in any case shall not exceed the amount of
interest paid by the supplier.
(10) The amount reduced from the output tax
liability in contravention of the provisions of sub-
section (7) shall be added to the output tax liability of
the recipient in his return for the month in which such
contravention takes place and such recipient shall be
liable to pay interest on the amount so added at the rate
specified in sub-section (3) of section 50.
602
LA GAZETTE DE L'ETAT
[PART–II
43. (1) The details of every credit note relating
to outward supply furnished by a registered person
(hereafter in this section referred to as the "supplier")
for a tax period shall, in such manner and within such
time as may be prescribed, be matched—
(a) with the corresponding reduction in the
claim for input tax credit by the corresponding
registered person (hereafter in this section
referred to as the "recipient") in his valid return
for the same tax period or any subsequent tax
period; and
(b) for duplication of claims for reduction in
output tax liability.
(2) The claim for reduction in output tax liability
by the supplier that matches with the corresponding
reduction in the claim for input tax credit by the
recipient shall be finally accepted and communicated,
in such manner as may be prescribed, to the supplier.
(3) Where the reduction of output tax liability in
respect of outward supplies exceeds the corresponding
reduction in the claim for input tax credit or the
corresponding credit note is not declared by the
recipient in his valid returns, the discrepancy shall be
communicated to both such persons in such manner as
may be prescribed.
(4) The duplication of claims for reduction in
output tax liability shall be communicated to the
supplier in such manner as may be prescribed.
(5) The amount in respect of which any
discrepancy is communicated under sub-section (3)
and which is not rectified by the recipient in his valid
return for the month in which discrepancy is
communicated shall be added to the output tax liability
of the supplier, in such manner as may be prescribed,
in his return for the month succeeding the month in
which the discrepancy is communicated.
Matching,
reversal and
reclaim of
reduction in
output tax
liability.
603
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(6) The amount in respect of any reduction in
output tax liability that is found to be on account of
duplication of claims shall be added to the output tax
liability of the supplier in his return for the month in
which such duplication is communicated.
(7) The supplier shall be eligible to reduce, from
his output tax liability, the amount added under sub-
section (5) if the recipient declares the details of the
credit note in his valid return within the time specified
in sub-section (9) of section 39.
(8) A supplier in whose output tax liability any
amount has been added under sub-section (5) or sub-
section (6), shall be liable to pay interest at the rate
specified under sub-section (1) of section 50 in
respect of the amount so added from the date of such
claim for reduction in the output tax liability till the
corresponding additions are made under the said sub-
sections.
(9) Where any reduction in output tax liability is
accepted under sub-section (7), the interest paid under
sub-section (8) shall be refunded to the supplier by
crediting the amount in the corresponding head of his
electronic cash ledger in such manner as may be
prescribed:
Provided that the amount of interest to be
credited in any case shall not exceed the amount of
interest paid by the recipient.
(10) The amount reduced from output tax liability
in contravention of the provisions of sub-section (7)
shall be added to the output tax liability of the supplier
in his return for the month in which such contravention
takes place and such supplier shall be liable to pay
interest on the amount so added at the rate specified
in sub-section (3) of section 50.
44. (1) Every registered person, other than an Input
Service Distributor, a person paying tax under section
51 or section 52, a casual taxable person and a non-
resident taxable person, shall furnish an annual return
Annual
return.
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LA GAZETTE DE L'ETAT
[PART–II
for every financial year electronically in such form and
manner as may be prescribed on or before the thirty-
first day of December following the end of such
financial year.
(2) Every registered person who is required to
get his accounts audited in accordance with the
provisions of sub-section (5) of section 35 shall
furnish, electronically, the annual return under sub-
section (1) along with a copy of the audited annual
accounts and a reconciliation statement, reconciling
the value of supplies declared in the return furnished
for the financial year with the audited annual financial
statement, and such other particulars as may be
prescribed.
45. Every registered person who is required to
furnish a return under sub-section (1) of section 39
and whose registration has been cancelled shall furnish
a final return within three months of the date of
cancellation or date of order of cancellation,
whichever is later, in such form and manner as may be
prescribed.
46. Where a registered person fails to furnish a
return under section 39 or section 44 or section 45, a
notice shall be issued requiring him to furnish such
return within fifteen days in such form and manner as
may be prescribed.
47. (1) Any registered person who fails to
furnish the details of outward or inward supplies
required under section 37 or section 38 or returns
required under section 39 or section 45 by the due
date shall pay a late fee of one hundred rupees for
every day during which such failure continues subject
to a maximum amount of five thousand rupees.
(2) Any registered person who fails to furnish the
return required under section 44 by the due date shall
be liable to pay a late fee of one hundred rupees for
Final return.
Notice to
return
defaulters.
Levy of late
fee.
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PART–II]
LA GAZETTE DE L'ETAT
every day during which such failure continues subject
to a maximum of an amount calculated at a quarter per
cent. of his turnover in the State.
48. (1) The manner of approval of goods and
services tax practitioners, their eligibility conditions,
duties and obligations, manner of removal and other
conditions relevant for their functioning shall be such
as may be prescribed.
(2) A registered person may authorise an
approved goods and services tax practitioner to furnish
the details of outward supplies under section 37, the
details of inward supplies under section 38 and the
return under section 39 or section 44 or section 45
in such manner as may be prescribed.
(3) Notwithstanding anything contained in sub-
section (2), the responsibility for correctness of any
particulars furnished in the return or other details filed
by the goods and services tax practitioners shall
continue to rest with the registered person on whose
behalf such return and details are furnished.
CHAPTER X
P AY MENT O F T AX
49. (1) Every deposit made towards tax,
interest, penalty, fee or any other amount by a person
by internet banking or by using credit or debit cards
or National Electronic Fund Transfer or Real Time
Gross Settlement or by such other mode and subject
to such conditions and restrictions as may be
prescribed, shall be credited to the electronic cash
ledger of such person to be maintained in such manner
as may be prescribed.
(2) The input tax credit as self-assessed in the
return of a registered person shall be credited to his
electronic credit ledger, in accordance with section 41,
to be maintained in such manner as may be prescribed.
Goods and
services tax
practitioners.
Payment of
tax, interest,
penalty and
other
amounts.
606
LA GAZETTE DE L'ETAT
[PART–II
(3) The amount available in the electronic cash
ledger may be used for making any payment towards
tax, interest, penalty, fees or any other amount payable
under the provisions of this Act or the rules made
thereunder in such manner and subject to such
conditions and within such time as may be prescribed.
(4) The amount available in the electronic credit
ledger may be used for making any payment towards
output tax under this Act or under the Integrated Goods
and Services Tax Act in such manner and subject to
such conditions and within such time as may be
prescribed.
(5) The amount of input tax credit available in the
electronic credit ledger of the registered person on
account of —
(a) integrated tax shall first be utilised towards
payment of integrated tax and the amount
remaining, if any, may be utilised towards the
payment of central tax and State tax, or as the
case may be, Union territory tax, in that order;
(b) the central tax shall first be utilised towards
payment of central tax and the amount remaining,
if any, may be utilised towards the payment of
integrated tax;
(c) the State tax shall first be utilised towards
payment of State tax and the amount remaining,
if any, may be utilised towards the payment of
integrated tax;
(d) the Union territory tax shall first be
utilised towards payment of Union territory tax
and the amount remaining, if any, may be utilised
towards the payment of integrated tax;
(e) the central tax shall not be utilised towards
payment of State tax or Union territory tax; and
(f) the State tax or Union territory tax shall
not be utilised towards payment of central tax.
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PART–II]
LA GAZETTE DE L'ETAT
(6) The balance in the electronic cash ledger or
electronic credit ledger after payment of tax, interest,
penalty, fee or any other amount payable under this Act
or the rules made thereunder may be refunded in
accordance with the provisions of section 54.
(7) All liabilities of a taxable person under this
Act shall be recorded and maintained in an electronic
liability register in such manner as may be prescribed.
(8) Every taxable person shall discharge his tax
and other dues under this Act or the rules made
thereunder in the following order, namely:—
(a) self-assessed tax, and other dues related to
returns of previous tax periods;
(b) self-assessed tax, and other dues related to
the return of the current tax period;
(c) any other amount payable under this Act
or the rules made thereunder including the
demand determined under section 73 or section 74.
(9) Every person who has paid the tax on goods
or services or both under this Act shall, unless the
contrary is proved by him, be deemed to have passed
on the full incidence of such tax to the recipient of
such goods or services or both.
Explanation.—For the purposes of this section,
(a) the date of credit to the account of the
Government in the authorised bank shall be
deemed to be the date of deposit in the
electronic cash ledger;
(b) the expression,-
(i) "tax dues" means the tax payable under
this Act and does not include interest, fee and
penalty; and
(ii) "other dues" means interest, penalty,
fee or any other amount payable under this Act
or the rules made thereunder.
608
LA GAZETTE DE L'ETAT
[PART–II
50. (1) Every person who is liable to pay tax in
accordance with the provisions of this Act or the rules
made thereunder, but fails to pay the tax or any part
thereof to the Government within the period
prescribed, shall for the period for which the tax or
any part thereof remains unpaid, pay, on his own,
interest at such rate, not exceeding eighteen per cent.,
as may be notified by the Government on the
recommendations of the Council.
(2) The interest under sub-section (1) shall be
calculated, in such manner as may be prescribed, from
the day succeeding the day on which such tax was due
to be paid.
(3) A taxable person who makes an undue or
excess claim of input tax credit under sub-section (10)
of section 42 or undue or excess reduction in output
tax liability under sub-section (10) of section 43, shall
pay interest on such undue or excess claim or on such
undue or excess reduction, as the case may be, at such
rate not exceeding twenty-four per cent., as may be
notified by the Government on the recommendations
of the Council.
51. (1) Notwithstanding anything to the contrary
contained in this Act, the Government may mandate,-
(a) a department or establishment of the
Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may
be
notified
by
the
Government
on
the
recommendations of the Council,
(hereafter in this section referred to as "the deductor"),
to deduct tax at the rate of one per cent. from the
payment made or credited to the supplier (hereafter in
this section referred to as "the deductee") of taxable
goods or services or both, where the total value of
such supply, under a contract, exceeds two lakh and
fifty thousand rupees:
Interest on
delayed
payment of
tax.
Tax
deduction at
source.
609
PART–II]
LA GAZETTE DE L'ETAT
Provided that no deduction shall be made if the
location of the supplier and the place of supply is in a
State or Union territory which is different from the
State or, as the case may be, Union territory of
registration of the recipient.
Explanation.—For the purpose of deduction of
tax specified above, the value of supply shall be taken
as the amount excluding the central tax, State tax,
integrated tax and cess indicated in the invoice.
(2) The amount deducted as tax under this section
shall be paid to the Government by the deductor within
ten days after the end of the month in which such
deduction is made, in such manner as may be
prescribed.
(3) The deductor shall furnish to the deductee a
certificate mentioning therein the contract value, rate
of deduction, amount deducted, amount paid to the
Government and such other particulars in such manner
as may be prescribed.
(4) If any deductor fails to furnish to the
deductee the certificate, after deducting the tax at
source, within five days of crediting the amount so
deducted to the Government, the deductor shall pay, by
way of a late fee, a sum of one hundred rupees per day
from the day after the expiry of such five day period
until the failure is rectified, subject to a maximum
amount of five thousand rupees.
(5) The deductee shall claim credit, in his
electronic cash ledger, of the tax deducted and
reflected in the return of the deductor furnished under
sub-section (3) of section 39, in such manner as may
be prescribed.
(6) If any deductor fails to pay to the Government
the amount deducted as tax under sub-section (1), he
shall pay interest in accordance with the provisions of
sub-section (1) of section 50, in addition to the
amount of tax deducted.
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LA GAZETTE DE L'ETAT
[PART–II
(7) The determination of the amount in default
under this section shall be made in the manner
specified in section 73 or section 74.
(8) The refund to the deductor or the deductee
arising on account of excess or erroneous deduction shall
be dealt with in accordance with the provisions of section 54:
Provided that no refund to the deductor shall be
granted, if the amount deducted has been credited to
the electronic cash ledger of the deductee.
52. (1) Notwithstanding anything to the contrary
contained in this Act, every electronic commerce
operator (hereafter in this section referred to as the
"operator"), not being an agent, shall collect an amount
calculated at such rate not exceeding one per cent., as
may be notified by the Government on the
recommendations of the Council, of the net value of
taxable supplies made through it by other suppliers
where the consideration with respect to such supplies
is to be collected by the operator.
Explanation.—For the purposes of this sub-section,
the expression "net value of taxable supplies" shall
mean the aggregate value of taxable supplies of goods
or services or both, other than services notified under
sub-section (5) of section 9, made during any month
by all registered persons through the operator reduced
by the aggregate value of taxable supplies returned to
the suppliers during the said month.
(2) The power to collect the amount specified in
sub-section (1) shall be without prejudice to any other
mode of recovery from the operator.
(3) The amount collected under sub-section (1)
shall be paid to the Government by the operator within
ten days after the end of the month in which such
collection is made, in such manner as may be
prescribed.
Collection of
tax at
source.
611
PART–II]
LA GAZETTE DE L'ETAT
(4) Every operator who collects the amount
specified in sub-section (1) shall furnish a statement,
electronically, containing the details of outward
supplies of goods or services or both effected through
it, including the supplies of goods or services or both
returned through it, and the amount collected under
sub-section (1) during a month, in such form and
manner as may be prescribed, within ten days after the
end of such month.
(5) Every operator who collects the amount
specified in sub-section (1) shall furnish an annual
statement, electronically, containing the details of
outward supplies of goods or services or both effected
through it, including the supplies of goods or services
or both returned through it, and the amount collected
under the said sub-section during the financial year, in
such form and manner as may be prescribed, before the
thirty first day of December following the end of such
financial year.
(6) If any operator after furnishing a statement
under sub-section (4) discovers any omission or
incorrect particulars therein, other than as a result of
scrutiny, audit, inspection or enforcement activity by
the tax authorities, he shall rectify such omission or
incorrect particulars in the statement to be furnished
for the month during which such omission or incorrect
particulars are noticed, subject to payment of interest,
as specified in sub-section (1) of section 50:
Provided that no such rectification of any
omission or incorrect particulars shall be allowed after
the due date for furnishing of statement for the month
of September following the end of the financial year
or the actual date of furnishing of the relevant annual
statement, whichever is earlier.
(7) The supplier who has supplied the goods or
services or both through the operator shall claim
credit, in his electronic cash ledger, of the amount
612
LA GAZETTE DE L'ETAT
[PART–II
collected and reflected in the statement of the
operator furnished under sub-section (4), in such
manner as may be prescribed.
(8) The details of supplies furnished by every
operator under sub-section (4) shall be matched with
the corresponding details of outward supplies
furnished by the concerned supplier registered under
this Act in such manner and within such time as may
be prescribed.
(9) Where the details of outward supplies
furnished by the operator under sub-section (4) do not
match with the corresponding details furnished by the
supplier under section 37, the discrepancy shall be
communicated to both persons in such manner and
within such time as may be prescribed.
(10) The amount in respect of which any
discrepancy is communicated under sub-section (9)
and which is not rectified by the supplier in his valid
return or the operator in his statement for the month
in which discrepancy is communicated, shall be added
to the output tax liability of the said supplier, where
the value of outward supplies furnished by the operator
is more than the value of outward supplies furnished
by the supplier, in his return for the month succeeding
the month in which the discrepancy is communicated
in such manner as may be prescribed.
(11) The concerned supplier, in whose output tax
liability any amount has been added under sub-section
(10), shall pay the tax payable in respect of such
supply along with interest, at the rate specified under
sub-section (1) of section 50 on the amount so added
from the date such tax was due till the date of its
payment.
(12) Any authority not below the rank of Deputy
Commissioner may serve a notice, either before or
during the course of any proceedings under this Act,
requiring the operator to furnish such details relating
to—
613
PART–II]
LA GAZETTE DE L'ETAT
(a) supplies of goods or services or both
effected through such operator during any period;
or
(b) stock of goods held by the suppliers making
supplies through such operator in the godowns
or warehouses, by whatever name called, managed
by such operator and declared as additional
places of business by such suppliers,
as may be specified in the notice.
(13) Every operator on whom a notice has been
served under sub-section (12) shall furnish the
required information within fifteen working days of the
date of service of such notice.
(14) Any person who fails to furnish the
information required by the notice served under sub-
section (12) shall, without prejudice to any action that
may be taken under section 122, be liable to a penalty
which may extend to twenty-five thousand rupees.
Explanation.—For the purposes of this section,
the expression "concerned supplier" shall mean the
supplier of goods or services or both making supplies
through the operator.
53. On utilisation of input tax credit availed under
this Act for payment of tax dues under the Integrated
Goods and Services Tax Act in accordance with the
provisions of sub-section (5) of section 49, as reflected
in the valid return furnished under sub-section (1) of
section 39, the amount collected as State tax shall stand
reduced by an amount equal to such credit so utilised
and the State Government shall transfer an amount
equal to the amount so reduced from the State tax
account to the integrated tax account in such manner
and within such time as may be prescribed.
Transfer of
input tax
credit.
614
LA GAZETTE DE L'ETAT
[PART–II
CHAPTER XI
REFUNDS
54. (1) Any person claiming refund of any tax
and interest, if any, paid on such tax or any other
amount paid by him, may make an application before
the expiry of two years from the relevant date in such
form and manner as may be prescribed:
Provided that a registered person, claiming refund
of any balance in the electronic cash ledger in
accordance with the provisions of sub-section (6) of
section 49, may claim such refund in the return
furnished under section 39 in such manner as may be
prescribed.
(2) A specialized agency of the United Nations
Organization or any Multilateral Financial Institution
and Organization notified under the United Nations
(Privileges and Immunities) Act, 1947, Consulate or
Embassy of foreign countries or any other person or
class of persons, as notified under section 55, entitled
to a refund of tax paid by it on inward supplies of
goods or services or both, may make an application for
such refund, in such form and manner as may be
prescribed, before the expiry of six months from the
last day of the quarter in which such supply was
received.
(3) Subject to the provisions of sub-section (10),
a registered person may claim refund of any unutilised
input tax credit at the end of any tax period:
Provided that no refund of unutilised input tax
credit shall be allowed in cases other than-
(i) zero-rated supplies made without payment
of tax;
(ii) where the credit has accumulated on
account of rate of tax on inputs being higher than
the rate of tax on output supplies (other than nil
rated or fully exempt supplies), except supplies
Refund of
tax.
Central
Act 46
of 1947.
615
PART–II]
LA GAZETTE DE L'ETAT
of goods or services or both as may be notified
by the Government on the recommendations of
the Council:
Provided further that no refund of unutilised
input tax credit shall be allowed in cases where the
goods exported out of India are subjected to export
duty:
Provided also that no refund of input tax credit
shall be allowed, if the supplier of goods or services
or both claims refund of the integrated tax paid on such
supplies.
(4) The application shall be accompanied by—
(a) such documentary evidence as may be
prescribed to establish that a refund is due to the
applicant; and
(b) such documentary or other evidence
(including the documents referred to in section
33) as the applicant may furnish to establish that
the amount of tax and interest, if any, paid on
such tax or any other amount paid in relation to
which such refund is claimed was collected from,
or paid by, him and the incidence of such tax and
interest had not been passed on to any other
person:
Provided that where the amount claimed as refund
is less than two lakh rupees, it shall not be necessary
for the applicant to furnish any documentary and other
evidences but he may file a declaration, based on the
documentary or other evidences available with him,
certifying that the incidence of such tax and interest
had not been passed on to any other person.
(5) If, on receipt of any such application, the
proper officer is satisfied that the whole or part of the
amount claimed as refund is refundable, he may make
an order accordingly and the amount so determined
shall be credited to the Fund referred to in section 57.
616
LA GAZETTE DE L'ETAT
[PART–II
(6) Notwithstanding anything contained in sub-
section (5), the proper officer may, in the case of any
claim for refund on account of zero-rated supply of
goods or services or both made by registered persons,
other than such category of registered persons as may
be notified by the Government on the recommendations
of the Council, refund on a provisional basis, ninety
per cent. of the total amount so claimed, excluding the
amount of input tax credit provisionally accepted, in
such manner and subject to such conditions, limitations
and safeguards as may be prescribed and thereafter
make an order under sub-section (5) for final
settlement of the refund claim after due verification
of documents furnished by the applicant.
(7) The proper officer shall issue the order under
sub-section (5) within sixty days from the date of
receipt of application complete in all respects.
(8) Notwithstanding anything contained in sub-
section (5), the refundable amount shall, instead of
being credited to the Fund, be paid to the applicant, if
such amount is relatable to—
(a) refund of tax paid on zero-rated supplies of
goods or services or both or on inputs or input
services used in making such zero-rated supplies;
(b) refund of unutilised input tax credit under
sub-section (3);
(c) refund of tax paid on a supply which is not
provided, either wholly or partially, and for which
invoice has not been issued, or where a refund
voucher has been issued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other
amount paid by the applicant, if he had not passed
on the incidence of such tax and interest to any
other person; or
617
PART–II]
LA GAZETTE DE L'ETAT
(f) the tax or interest borne by such other class
of applicants as the Government may, on the
recommendations of the Council, by notification,
specify.
(9) Notwithstanding anything to the contrary
contained in any judgment, decree, order or direction
of the Appellate Tribunal or any court or in any other
provisions of this Act or the rules made thereunder or
in any other law for the time being in force, no refund
shall be made except in accordance with the provisions
of sub-section (8).
(10) Where any refund is due under sub-section
(3) to a registered person who has defaulted in
furnishing any return or who is required to pay any tax,
interest or penalty, which has not been stayed by any
court, Tribunal or Appellate Authority by the specified
date, the proper officer may—
(a) withhold payment of refund due until the
said person has furnished the return or paid the
tax, interest or penalty, as the case may be;
(b) deduct from the refund due, any tax,
interest, penalty, fee or any other amount which
the taxable person is liable to pay but which
remains unpaid under this Act or under the
existing law.
Explanation.—For the purposes of this sub-
section, the expression "specified date" shall mean the
last date for filing an appeal under this Act.
(11) Where an order giving rise to a refund is the
subject matter of an appeal or further proceedings or
where any other proceedings under this Act is pending
and the Commissioner is of the opinion that grant of
such refund is likely to adversely affect the revenue
in the said appeal or other proceedings on account of
malfeasance or fraud committed, he may, after giving
the taxable person an opportunity of being heard,
withhold the refund till such time as he may determine.
618
LA GAZETTE DE L'ETAT
[PART–II
(12) Where a refund is withheld under sub-
section (11), the taxable person shall, notwithstanding
anything contained in section 56, be entitled to interest
at such rate not exceeding six per cent. as may be
notified on the recommendations of the Council, if as
a result of the appeal or further proceedings he
becomes entitled to refund.
(13) Notwithstanding anything to the contrary
contained in this section, the amount of advance tax
deposited by a casual taxable person or a non-resident
taxable person under sub-section (2) of section 27,
shall not be refunded unless such person has, in respect
of the entire period for which the certificate of
registration granted to him had remained in force,
furnished all the returns required under section 39.
(14) Notwithstanding anything contained in this
section, no refund under sub-section (5) or sub-section
(6) shall be paid to an applicant, if the amount is less
than one thousand rupees.
Explanation.—For
the
purposes
of
this
section,—
(1) "refund" includes refund of tax paid on
zero-rated supplies of goods or services or both
or on inputs or input services used in making
such zero-rated supplies, or refund of tax on the
supply of goods regarded as deemed exports, or
refund of unutilised input tax credit as provided
under sub-section (3).
(2) "relevant date" means—
(a) in the case of goods exported out of India
where a refund of tax paid is available in respect
of goods themselves or, as the case may be, the
inputs or input services used in such goods,—
(i) if the goods are exported by sea or
air, the date on which the ship or the aircraft
in which such goods are loaded, leaves India;
or
619
PART–II]
LA GAZETTE DE L'ETAT
(ii) if the goods are exported by land, the
date on which such goods pass the frontier; or
(iii) if the goods are exported by post,
the date of despatch of goods by the Post
Office concerned to a place outside India;
(b) in the case of supply of goods regarded as
deemed exports where a refund of tax paid is
available in respect of the goods, the date on
which the return relating to such deemed exports
is furnished;
(c) in the case of services exported out of
India where a refund of tax paid is available in
respect of services themselves or, as the case
may be, the inputs or input services used in such
services, the date of—
(i) receipt of payment in convertible
foreign exchange, where the supply of
services had been completed prior to the
receipt of such payment; or
(ii) issue of invoice, where payment for
the services had been received in advance prior
to the date of issue of the invoice;
(d) in case where the tax becomes refundable
as a consequence of judgment, decree, order or
direction of the Appellate Authority, Appellate
Tribunal or any court, the date of communication
of such judgment, decree, order or direction;
(e) in the case of refund of unutilised input tax
credit under sub-section (3), the end of the
financial year in which such claim for refund
arises;
(f) in the case where tax is paid provisionally
under this Act or the rules made thereunder, the
date of adjustment of tax after the final
assessment thereof;
620
LA GAZETTE DE L'ETAT
[PART–II
(g) in the case of a person, other than the
supplier, the date of receipt of goods or services
or both by such person; and
(h) in any other case, the date of payment of
tax.
55. The Government may, on the recommendations
of the Council, by notification, specify any specialized
agency of the United Nations Organization or any
Multilateral Financial Institution and Organization
notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of
foreign countries and any other person or class of
persons as may be specified in this behalf, who shall,
subject to such conditions and restrictions as may be
prescribed, be entitled to claim a refund of taxes paid
on the notified supplies of goods or services or both
received by them.
56. If any tax ordered to be refunded under
sub-section (5) of section 54 to any applicant is not
refunded within sixty days from the date of receipt of
application under sub-section (1) of that section,
interest at such rate not exceeding six per cent. as may
be specified in the notification issued by the
Government on the recommendations of the Council
shall be payable in respect of such refund from the
date immediately after the expiry of sixty days from
the date of receipt of application under the said
sub-section till the date of refund of such tax:
Provided that where any claim of refund arises
from an order passed by an adjudicating authority or
Appellate Authority or Appellate Tribunal or court
which has attained finality and the same is not refunded
within sixty days from the date of receipt of
application filed consequent to such order, interest at
such rate not exceeding nine per cent. as may be
notified by the Government on the recommendations
Refund in
certain
cases.
Central
Act 46
of 1947.
Interest on
delayed
refunds.
621
PART–II]
LA GAZETTE DE L'ETAT
of the Council shall be payable in respect of such
refund from the date immediately after the expiry of sixty
days from the date of receipt of application till the date
of refund.
Explanation.—For the purposes of this section,
where any order of refund is made by an Appellate
Authority, Appellate Tribunal or any court against an
order of the proper officer under sub-section (5) of
section 54, the order passed by the Appellate Authority,
Appellate Tribunal or by the court shall be deemed to
be an order passed under the said sub-section (5).
57. The Government shall constitute a Fund, to
be called the Consumer Welfare Fund and there shall
be credited to the Fund,—
(a) the amount referred to in sub-section (5)
of section 54;
(b) any income from investment of the amount
credited to the Fund; and
(c) such other monies received by it,
in such manner as may be prescribed.
58. (1) All sums credited to the Fund shall be
utilised by the Government for the welfare of the
consumers in such manner as may be prescribed.
(2) The Government or the authority specified by
it shall maintain proper and separate account and other
relevant records in relation to the Fund and prepare an
annual statement of accounts in such form as may be
prescribed in consultation with the Comptroller and
Auditor General of India.
CHAPTER—XII
ASSESSMENT
59. Every registered person shall self-assess the
taxes payable under this Act and furnish a return for
each tax period as specified under section 39.
Self-
assessment.
Consumer
Welfare
Fund.
Utilisation
of Fund.
622
LA GAZETTE DE L'ETAT
[PART–II
60. (1) Subject to the provisions of sub-section (2),
where the taxable person is unable to determine the
value of goods or services or both or determine the rate
of tax applicable thereto, he may request the proper
officer in writing giving reasons for payment of tax on
a provisional basis and the proper officer shall pass an
order, within a period not later than ninety days from
the date of receipt of such request, allowing payment
of tax on provisional basis at such rate or on such value
as may be specified by him.
(2) The payment of tax on provisional basis may
be allowed, if the taxable person executes a bond in
such form as may be prescribed, and with such surety
or security as the proper officer may deem fit, binding
the taxable person for payment of the difference
between the amount of tax as may be finally assessed
and the amount of tax provisionally assessed.
(3) The proper officer shall, within a period not
exceeding six months from the date of the
communication of the order issued under sub-section
(1), pass the final assessment order after taking into
account such information as may be required for
finalizing the assessment:
Provided that the period specified in this sub-
section may, on sufficient cause being shown and for
reasons to be recorded in writing, be extended by the
Joint Commissioner or Additional Commissioner for
a further period not exceeding six months and by the
Commissioner for such further period not exceeding
four years.
(4) The registered person shall be liable to pay
interest on any tax payable on the supply of goods or
services or both under provisional assessment but not
paid on the due date specified under sub-section (7)
of section 39 or the rules made thereunder, at the rate
specified under sub-section (1) of section 50, from
the first day after the due date of payment of tax in
Provisional
assessment.
623
PART–II]
LA GAZETTE DE L'ETAT
respect of the said supply of goods or services or both
till the date of actual payment, whether such amount is
paid before or after the issuance of order for final
assessment.
(5) Where the registered person is entitled to a
refund consequent to the order of final assessment
under sub-section (3), subject to the provisions of
sub-section (8) of section 54, interest shall be paid on
such refund as provided in section 56.
61. (1) The proper officer may scrutinize the
return and related particulars furnished by the
registered person to verify the correctness of the
return and inform him of the discrepancies noticed, if
any, in such manner as may be prescribed and seek his
explanation thereto.
(2) In case the explanation is found acceptable,
the registered person shall be informed accordingly
and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is
furnished within a period of thirty days of being
informed by the proper officer or such further period
as may be permitted by him or where the registered
person, after accepting the discrepancies, fails to take
the corrective measure in his return for the month in
which the discrepancy is accepted, the proper officer
may initiate appropriate action including those under
section 65 or section 66 or section 67, or proceed to
determine the tax and other dues under section 73 or
section 74.
62. (1) Notwithstanding anything to the contrary
contained in section 73 or section 74, where a
registered person fails to furnish the return under
section 39 or section 45, even after the service of a
notice under section 46, the proper officer may
proceed to assess the tax liability of the said person
to the best of his judgement taking into account all the
Scrutiny of
returns.
Assessment
of non-filers
of returns.
624
LA GAZETTE DE L'ETAT
[PART–II
relevant material which is available or which he has
gathered and issue an assessment order within a period
of five years from the date specified under section 44
for furnishing of the annual return for the financial year
to which the tax not paid relates.
(2) Where the registered person furnishes a valid
return within thirty days of the service of the
assessment order under sub-section (1), the said
assessment order shall be deemed to have been
withdrawn but the liability for payment of interest
under sub-section (1) of section 50 or for payment of
late fee under section 47 shall continue.
63. Notwithstanding anything to the contrary
contained in section 73 or section 74, where a taxable
person fails to obtain registration even though liable
to do so or whose registration has been cancelled
under sub-section (2) of section 29 but who was liable
to pay tax, the proper officer may proceed to assess
the tax liability of such taxable person to the best of
his judgement for the relevant tax periods and issue an
assessment order within a period of five years from
the date specified under section 44 for furnishing of
the annual return for the financial year to which the
tax not paid relates:
Provided that no such assessment order shall be
passed without giving the person an opportunity of
being heard.
64. (1) The proper officer may, on any evidence
showing a tax liability of a person coming to his
notice, with the previous permission of Additional
Commissioner or Joint Commissioner, proceed to
assess the tax liability of such person to protect the
interest of revenue and issue an assessment order, if
he has sufficient grounds to believe that any delay in
doing so may adversely affect the interest of revenue:
Provided that where the taxable person to whom
the liability pertains is not ascertainable and such
liability pertains to supply of goods, the person in
Assessment
of
unregistered
persons.
Summary
assessment
in certain
special
cases.
625
PART–II]
LA GAZETTE DE L'ETAT
charge of such goods shall be deemed to be the taxable
person liable to be assessed and liable to pay tax and
any other amount due under this section.
(2) On an application made by the taxable person
within thirty days from the date of receipt of order
passed under sub-section (1) or on his own motion, if
the Additional Commissioner or Joint Commissioner
considers that such order is erroneous, he may
withdraw such order and follow the procedure laid
down in section 73 or section 74.
CHAPTER XIII
AUDIT
65. (1) The Commissioner or any officer
authorised by him, by way of a general or a specific
order, may undertake audit of any registered person for
such period, at such frequency and in such manner as
may be prescribed.
(2) The officers referred to in sub-section (1)
may conduct audit at the place of business of the
registered person or in their office.
(3) The registered person shall be informed by
way of a notice not less than fifteen working days prior
to the conduct of audit in such manner as may be
prescribed.
(4) The audit under sub-section (1) shall be
completed within a period of three months from the
date of commencement of the audit:
Provided that where the Commissioner is
satisfied that audit in respect of such registered person
cannot be completed within three months, he may, for
the reasons to be recorded in writing, extend the
period by a further period not exceeding six months.
Explanation.—For the purposes of this sub-
section, the expression "commencement of audit" shall
mean the date on which the records and other
documents, called for by the tax authorities, are made
Audit by tax
authorities.
626
LA GAZETTE DE L'ETAT
[PART–II
available by the registered person or the actual
institution of audit at the place of business, whichever
is later.
(5) During the course of audit, the authorised
officer may require the registered person,—
(i) to afford him the necessary facility to
verify the books of account or other
documents as he may require;
(ii) to furnish such information as he
may require and render assistance for timely
completion of the audit.
(6) On conclusion of audit, the proper officer
shall, within thirty days, inform the registered person,
whose records are audited, about the findings, his
rights and obligations and the reasons for such
findings.
(7) Where the audit conducted under sub-section (1)
results in detection of tax not paid or short paid or
erroneously refunded, or input tax credit wrongly
availed or utilised, the proper officer may initiate
action under section 73 or section 74.
66. (1) If at any stage of scrutiny, inquiry,
investigation or any other proceedings before him, any
officer not below the rank of Assistant Commissioner,
having regard to the nature and complexity of the case
and the interest of revenue, is of the opinion that the
value has not been correctly declared or the credit
availed is not within the normal limits, he may, with
the prior approval of the Commissioner, direct such
registered person by a communication in writing to get
his records including books of account examined and
audited by a chartered accountant or a cost accountant
as may be nominated by the Commissioner.
(2) The chartered accountant or cost accountant
so nominated shall, within the period of ninety days,
submit a report of such audit duly signed and certified
by him to the said Assistant Commissioner mentioning
therein such other particulars as may be specified:
Special audit.
627
PART–II]
LA GAZETTE DE L'ETAT
Provided that the Assistant Commissioner may,
on an application made to him in this behalf by the
registered person or the chartered accountant or cost
accountant or for any material and sufficient reason,
extend the said period by a further period of ninety
days.
(3) The provisions of sub-section (1) shall have
effect notwithstanding that the accounts of the
registered person have been audited under any other
provisions of this Act or any other law for the time
being in force.
(4) The registered person shall be given an
opportunity of being heard in respect of any material
gathered on the basis of special audit under sub-
section (1) which is proposed to be used in any
proceedings against him under this Act or the rules
made thereunder.
(5) The expenses of the examination and audit of
records
under
sub-section
(1),
including
the
remuneration of such chartered accountant or cost
accountant, shall be determined and paid by the
Commissioner and such determination shall be final.
(6) Where the special audit conducted under sub-
section (1) results in detection of tax not paid or short
paid or erroneously refunded, or input tax credit
wrongly availed or utilised, the proper officer may
initiate action under section 73 or section 74.
CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
67. (1) Where the proper officer, not below the
rank of Joint Commissioner, has reasons to believe
that—
(a) a taxable person has suppressed any
transaction relating to supply of goods or
services or both or the stock of goods in hand,
or has claimed input tax credit in excess of his
Power of
inspection,
search and
seizure.
628
LA GAZETTE DE L'ETAT
[PART–II
entitlement under this Act or has indulged in
contravention of any of the provisions of this Act
or the rules made thereunder to evade tax under
this Act; or
(b) any person engaged in the business of
transporting goods or an owner or operator of a
warehouse or a godown or any other place is
keeping goods which have escaped payment of
tax or has kept his accounts or goods in such a
manner as is likely to cause evasion of tax
payable under this Act,
he may authorise in writing any other officer of State
tax to inspect any places of business of the taxable
person or the persons engaged in the business of
transporting goods or the owner or the operator of
warehouse or godown or any other place.
(2) Where the proper officer, not below the rank
of Joint Commissioner, either pursuant to an
inspection carried out under sub-section (1) or
otherwise, has reasons to believe that any goods liable
to confiscation or any documents or books or things,
which in his opinion shall be useful for or relevant to
any proceedings under this Act, are secreted in any
place, he may authorise in writing any other officer of
State tax to search and seize or may himself search and
seize such goods, documents or books or things:
Provided that where it is not practicable to seize
any such goods, the proper officer, or any officer
authorised by him, may serve on the owner or the
custodian of the goods an order that he shall not
remove, part with, or otherwise deal with the goods
except with the previous permission of such officer:
Provided further that the documents or books or
things so seized shall be retained by such officer only
for so long as may be necessary for their examination
and for any inquiry or proceedings under this Act.
629
PART–II]
LA GAZETTE DE L'ETAT
(3) The documents, books or things referred to
in sub-section (2) or any other documents, books or
things produced by a taxable person or any other
person, which have not been relied upon for the issue
of notice under this Act or the rules made thereunder,
shall be returned to such person within a period not
exceeding thirty days of the issue of the said notice.
(4) The officer authorised under sub-section (2)
shall have the power to seal or break open the door of
any premises or to break open any almirah, electronic
devices, box, receptacle in which any goods, accounts,
registers or documents of the person are suspected to
be concealed, where access to such premises, almirah,
electronic devices, box or receptacle is denied.
(5) The person from whose custody any
documents are seized under sub-section (2) shall
be entitled to make copies thereof or take extracts
therefrom in the presence of an authorised officer at
such place and time as such officer may indicate in
this behalf except where making such copies or taking
such extracts may, in the opinion of the proper officer,
prejudicially affect the investigation.
(6) The goods so seized under sub-section (2)
shall be released, on a provisional basis, upon
execution of a bond and furnishing of a security, in
such manner and of such quantum, respectively, as may
be prescribed or on payment of applicable tax, interest
and penalty payable, as the case may be.
(7) Where any goods are seized under sub-section (2)
and no notice in respect thereof is given within six
months of the seizure of the goods, the goods shall be
returned to the person from whose possession they
were seized:
Provided that the period of six months may, on
sufficient cause being shown, be extended by the proper
officer for a further period not exceeding six months.
630
LA GAZETTE DE L'ETAT
[PART–II
(8) The Government may, having regard to the
perishable or hazardous nature of any goods,
depreciation in the value of the goods with the passage
of time, constraints of storage space for the goods or
any other relevant considerations, by notification,
specify the goods or class of goods which shall, as
soon as may be after its seizure under sub-section (2),
be disposed of by the proper officer in such manner
as may be prescribed.
(9) Where any goods, being goods specified
under sub-section (8), have been seized by a proper
officer, or any officer authorised by him under
sub-section (2), he shall prepare an inventory of such
goods in such manner as may be prescribed.
(10) The provisions of the Code of Criminal
Procedure, 1973, relating to search and seizure, shall,
so far as may be, apply to search and seizure under this
section subject to the modification that sub-section
(5) of section 165 of the said Code shall have effect
as if for the word "Magistrate", wherever it occurs, the
word "Commissioner" were substituted.
(11) Where the proper officer has reasons to
believe that any person has evaded or is attempting to evade
the payment of any tax, he may, for reasons to be
recorded in writing, seize the accounts, registers or
documents of such person produced before him and
shall grant a receipt for the same, and shall retain the
same for so long as may be necessary in connection
with any proceedings under this Act or the rules made
thereunder for prosecution.
(12) The Commissioner or an officer authorised
by him may cause purchase of any goods or services
or both by any person authorised by him from the
business premises of any taxable person, to check the
issue of tax invoices or bills of supply by such taxable
person, and on return of goods so purchased by such
officer, such taxable person or any person in charge
of the business premises shall refund the amount so
paid towards the goods after cancelling any tax invoice
or bill of supply issued earlier.
Central
Act 2
of 1974.
631
PART–II]
LA GAZETTE DE L'ETAT
68. (1) The Government may require the person
in charge of a conveyance carrying any consignment
of goods of value exceeding such amount as may be
specified to carry with him such documents and such
devices as may be prescribed.
(2) The details of documents required to be
carried under sub-section (1) shall be validated in such
manner as may be prescribed.
(3) Where any conveyance referred to in sub-
section (1) is intercepted by the proper officer at any
place, he may require the person in charge of the said
conveyance to produce the documents prescribed
under the said sub-section and devices for verification,
and the said person shall be liable to produce the
documents and devices and also allow the inspection
of goods.
69. (1) Where the Commissioner has reasons to
believe that a person has committed any offence
specified in clause (a) or clause (b) or clause (c) or
clause (d) of sub-section (1) of section 132 which is
punishable under clause (i) or clause (ii) of sub-section (1),
or sub-section (2) of the said section, he may, by order,
authorise any officer of State tax to arrest such
person.
(2) Where a person is arrested under sub-section (1)
for an offence specified under sub-section (5) of
section 132, the officer authorised to arrest the person
shall inform such person of the grounds of arrest and
produce him before a Magistrate within twenty four
hours.
(3) Subject to the provisions of the Code of
Criminal Procedure, 1973,-
(a) where a person is arrested under sub-section (1)
for any offence specified under sub-section (4)
of section 132, he shall be admitted to bail or in
default of bail, forwarded to the custody of the
Magistrate;
Inspection of
goods in
movement.
Power to
arrest.
Central
Act 2
of 1974.
632
LA GAZETTE DE L'ETAT
[PART–II
(b) in the case of a non-cognizable and bailable
offence, the Deputy Commissioner or the
Assistant Commissioner shall, for the purpose of
releasing an arrested person on bail or otherwise,
have the same powers and be subject to the same
provisions as an officer-in-charge of a police station.
70. (1) The proper officer under this Act shall
have power to summon any person whose attendance
he considers necessary either to give evidence or to
produce a document or any other thing in any inquiry
in the same manner, as provided in the case of a civil
court under the provisions of the Code of Civil
Procedure, 1908.
(2) Every such inquiry referred to in sub-section (1)
shall be deemed to be a "judicial proceedings" within
the meaning of section 193 and section 228 of the
Indian Penal Code.
71. (1) Any officer under this Act, authorised by
the proper officer not below the rank of Joint
Commissioner, shall have access to any place of
business of a registered person to inspect books of
account, documents, computers, computer programs,
computer software whether installed in a computer or
otherwise and such other things as he may require and
which may be available at such place, for the purposes
of carrying out any audit, scrutiny, verification and
checks as may be necessary to safeguard the interest
of revenue.
(2) Every person in charge of place referred to
in sub-section (1) shall, on demand, make available to
the officer authorised under sub-section (1) or the
audit party deputed by the proper officer or a cost
accountant or chartered accountant nominated under
section 66—
(i)
such
records
as
prepared
or
maintained by the registered person and
declared to the proper officer in such manner
as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial
accounts, duly audited, wherever required;
Power to
summon
persons to
give
evidence and
produce
documents.
Access to
business
premises.
Central
Act 5 of
1908.
Central
Act 45 of
1860.
633
PART–II]
LA GAZETTE DE L'ETAT
(iv) cost audit report, if any, under
section 148 of the Companies Act, 2013;
(v) the income-tax audit report, if any,
under section 44AB of the Income-tax Act,
1961; and
(vi) any other relevant record,
for the scrutiny by the officer or audit party or the
chartered accountant or cost accountant within a period
not exceeding fifteen working days from the day when
such demand is made, or such further period as may
be allowed by the said officer or the audit party or the
chartered accountant or cost accountant.
72. (1) All officers of Police, Railways,
Customs, and those officers engaged in the collection
of land revenue, including village officers, officers of
central tax and officers of the Union territory tax shall
assist the proper officers in the implementation of this
Act.
(2) The Government may, by notification,
empower and require any other class of officers to
assist the proper officers in the implementation of this
Act when called upon to do so by the Commissioner.
CHAPTER XV
DEMANDS AND RECOVERY
73. (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 for any reason, other than the reason
of fraud or any wilful misstatement or suppression of
facts to evade tax, 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.
Officers to
assist proper
officers.
Central
Act 18
of 2013.
Central
Act 43
of 1961.
Determination
of tax not
paid or short
paid or
erroneously
refunded or
input tax
credit wrongly
availed or
utilised for
any reason
other than
fraud or any
wilful-
misstatement
or
suppression
of facts.
634
LA GAZETTE DE L'ETAT
[PART–II
(2) The proper officer shall issue the notice
under sub-section (1) at least three months prior to the
time limit specified in sub-section (10) for issuance
of order.
(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 person chargeable with tax may, before
service of notice under sub-section (1) or, as the case
may be, the statement under sub-section (3), pay the
amount of tax along with interest payable thereon under
section 50 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.
(6) The proper officer, on receipt of such
information, shall not serve any notice under sub-
section (1) or, as the case may be, the statement under
sub-section (3), in respect of the tax so paid or any
penalty payable under the provisions of this Act or the
rules made thereunder.
(7) Where the proper officer is of the opinion that
the amount paid under sub-section (5) 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.
635
PART–II]
LA GAZETTE DE L'ETAT
(8) Where any person chargeable with tax under
sub-section (1) or sub-section (3) pays the said tax
along with interest payable under section 50 within
thirty days of issue of show cause notice, no penalty
shall be payable and all proceedings in respect of the
said notice shall be deemed to be concluded.
(9) The proper officer shall, after considering
the representation, if any, made by person chargeable
with tax, determine the amount of tax, interest and a
penalty equivalent to ten per cent. of tax or ten
thousand rupees, whichever is higher, due from such
person and issue an order.
(10) The proper officer shall issue the order
under sub-section (9) within three years 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 three years from the date of erroneous refund.
(11) Notwithstanding anything contained in
sub-section (6) or sub-section (8), penalty under
sub-section (9) 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.
74. (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 by reason of fraud, or
any wilful misstatement or suppression of facts to
evade tax, 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 equivalent to the tax specified
in the notice.
Determination
of tax not paid
or short paid
or erroneously
refunded or
input tax
credit wrongly
availed or
utilised by
reason of
fraud or any
wilful-
misstatement
or suppression
of facts.
636
LA GAZETTE DE L'ETAT
[PART–II
(2) The proper officer shall issue the notice
under sub-section (1) at least six months prior to the
time limit specified in sub-section (10) for issuance
of order.
(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 statement under sub-section (3)
shall be deemed to be service of notice under
sub-section (1) of section 73, subject to the condition
that the grounds relied upon in the said statement,
except the ground of fraud, or any wilful-misstatement
or suppression of facts to evade tax, for periods other
than those covered under sub-section (1) are the same
as are mentioned in the earlier notice.
(5) The person chargeable with tax may, 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 per cent. 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.
(6) 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.
(7) Where the proper officer is of the opinion
that the amount paid under sub-section (5) 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.
637
PART–II]
LA GAZETTE DE L'ETAT
(8) Where any person chargeable with tax under
sub-section (1) pays the said tax along with interest
payable under section 50 and a penalty equivalent to
twenty five per cent. of such tax within thirty days of
issue of the notice, all proceedings in respect of the
said notice shall be deemed to be concluded.
(9) 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.
(10) The proper officer shall issue the order
under sub-section (9) within a period of five years
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 five years from the date of
erroneous refund.
(11) Where any person served with an order
issued under sub-section (9) pays the tax along with
interest payable thereon under section 50 and a penalty
equivalent to fifty per cent. of such tax within thirty
days of communication of the order, all proceedings
in respect of the said notice shall be deemed to be
concluded.
Explanation 1.—For the purposes of
section 73 and 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 section 73 or section 74, the
proceedings against all the persons liable to
pay penalty under sections 122, 125, 129 and
130 are deemed to be concluded.
638
LA GAZETTE DE L'ETAT
[PART–II
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.
75. (1) Where the service of notice or issuance of
order is stayed by an order of a court or Appellate
Tribunal, the period of such stay shall be excluded in
computing the period specified in sub-sections (2) and
(10) of section 73 or sub-sections (2) and (10) of
section 74, as the case may be.
(2) Where any Appellate Authority or Appellate
Tribunal or court concludes that the notice issued
under sub-section (1) of section 74 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 proper officer shall determine
the tax payable by such person, deeming as if the
notice were issued under sub-section (1) of section 73.
(3) Where any order is required to be issued in
pursuance of the direction of the Appellate Authority
or Appellate Tribunal or a court, such order shall be
issued
within
two
years
from
the
date
of
communication of the said direction.
(4) An opportunity of hearing shall be granted
where a request is received in writing from the person
chargeable with tax or penalty, or where any adverse
decision is contemplated against such person.
(5) The proper officer shall, if sufficient cause
is shown by the person chargeable with tax, grant time
to the said person and adjourn the hearing for reasons
to be recorded in writing:
General
provisions
relating to
determination
of tax.
639
PART–II]
LA GAZETTE DE L'ETAT
Provided that no such adjournment shall be
granted for more than three times to a person during
the proceedings.
(6) The proper officer, in his order, shall set out
the relevant facts and the basis of his decision.
(7) The amount of tax, interest and penalty
demanded in the order shall not be in excess of the
amount specified in the notice and no demand shall be
confirmed on the grounds other than the grounds
specified in the notice.
(8) Where the Appellate Authority or Appellate
Tribunal or court modifies the amount of tax
determined by the proper officer, the amount of
interest and penalty shall stand modified accordingly,
taking into account the amount of tax so modified.
(9) The interest on the tax short paid or not paid
shall be payable whether or not specified in the order
determining the tax liability.
(10) The adjudication proceedings shall be
deemed to be concluded, if the order is not issued
within three years as provided for in sub-section (10)
of section 73 or within five years as provided for in
sub-section (10) of section 74.
(11) An issue on which the Appellate Authority
or the Appellate Tribunal or the High Court has given
its decision which is prejudicial to the interest of
revenue in some other proceedings and an appeal to
the Appellate Tribunal or the High Court or the
Supreme Court against such decision of the Appellate
Authority or the Appellate Tribunal or the High Court
is pending, the period spent between the date of the decision
of the Appellate Authority and that of the Appellate
Tribunal or the date of decision of the Appellate
Tribunal and that of the High Court or the date of the
decision of the High Court and that of the Supreme
Court shall be excluded in computing the period
640
LA GAZETTE DE L'ETAT
[PART–II
referred to in sub-section (10) of section 73 or
sub-section (10) of section 74 where proceedings are
initiated by way of issue of a show cause notice under
the said sections.
(12) Notwithstanding anything contained in
section 73 or section 74, where any amount of self-
assessed tax in accordance with a return furnished under
section 39 remains unpaid, either wholly or partly, or
any amount of interest payable on such tax remains
unpaid, the same shall be recovered under the
provisions of section 79.
(13) Where any penalty is imposed under section 73
or section 74, no penalty for the same act or omission
shall be imposed on the same person under any other
provision of this Act.
76. (1) Notwithstanding anything to the contrary
contained in any order or direction of any Appellate
Authority or Appellate Tribunal or court or in any
other provisions of this Act or the rules made
thereunder or any other law for the time being in
force, every person who has collected from any other
person any amount as representing the tax under this
Act, and has not paid the said amount to the
Government, shall forthwith pay the said amount to the
Government, irrespective of whether the supplies in
respect of which such amount was collected are
taxable or not.
(2) Where any amount is required to be paid to
the Government under sub-section (1), and which has
not been so paid, the proper officer may serve on the
person liable to pay such amount a notice requiring
him to show cause as to why the said amount as
specified in the notice, should not be paid by him to
the Government and why a penalty equivalent to the
amount specified in the notice should not be imposed
on him under the provisions of this Act.
Tax collected
but not paid
to
Government.
641
PART–II]
LA GAZETTE DE L'ETAT
(3) The proper officer shall, after considering
the representation, if any, made by the person on whom
the notice is served under sub-section (2), determine
the amount due from such person and thereupon such
person shall pay the amount so determined.
(4) The person referred to in sub-section (1)
shall in addition to paying the amount referred to in
sub-section (1) or sub-section (3) also be liable to pay
interest thereon at the rate specified under section 50
from the date such amount was collected by him to the
date such amount is paid by him to the Government.
(5) An opportunity of hearing shall be granted
where a request is received in writing from the person
to whom the notice was issued to show cause.
(6) The proper officer shall issue an order within
one year from the date of issue of the notice.
(7) Where the issuance of order is stayed by an
order of the court or Appellate Tribunal, the period of
such stay shall be excluded in computing the period of
one year.
(8) The proper officer, in his order, shall set out
the relevant facts and the basis of his decision.
(9) The amount paid to the Government under
sub-section (1) or sub-section (3) shall be adjusted
against the tax payable, if any, by the person in relation
to the supplies referred to in sub-section (1).
(10) Where any surplus is left after the
adjustment under sub-section (9), the amount of such
surplus shall either be credited to the Fund or refunded
to the person who has borne the incidence of such
amount.
(11) The person who has borne the incidence of
the amount, may apply for the refund of the same in
accordance with the provisions of section 54.
642
LA GAZETTE DE L'ETAT
[PART–II
77. (1) A registered person who has paid the
central tax and State tax on a transaction considered by
him to be an intra-State supply, but which is
subsequently held to be an inter-State supply, shall be
refunded the amount of taxes so paid in such manner
and subject to such conditions as may be prescribed.
(2) A registered person who has paid integrated
tax on a transaction considered by him to be an
inter-State supply, but which is subsequently held to
be an intra-State supply, shall not be required to pay
any interest on the amount of State tax payable.
78. Any amount payable by a taxable person in
pursuance of an order passed under this Act shall be
paid by such person within a period of three months
from the date of service of such order failing which
recovery proceedings shall be initiated:
Provided that where the proper officer considers
it expedient in the interest of revenue, he may, for
reasons to be recorded in writing, require the said
taxable person to make such payment within such
period less than a period of three months as may be
specified by him.
79. (1) Where any amount payable by a person to
the Government under any of the provisions of this Act
or the rules made thereunder is not paid, the proper
officer shall proceed to recover the amount by one or
more of the following modes, namely:—
(a) the proper officer may deduct or may
require any other specified officer to deduct the
amount so payable from any money owing to
such person which may be under the control of
the proper officer or such other specified
officer;
(b) the proper officer may recover or may
require any other specified officer to recover the
amount so payable by detaining and selling any
goods belonging to such person which are under
the control of the proper officer or such other
specified officer;
Initiation of
recovery
proceelings.
Tax
wrongfully
collected and
paid to
Central
Government
or State
Government.
Recovery of
tax.
643
PART–II]
LA GAZETTE DE L'ETAT
(c) (i) the proper officer may, by a notice in
writing, require any other person from whom
money is due or may become due to such person
or who holds or may subsequently hold money
for or on account of such person, to pay to the
Government either forthwith upon the money
becoming due or being held, or within the time
specified in the notice not being before the
money becomes due or is held, so much of the
money as is sufficient to pay the amount due
from such person or the whole of the money
when it is equal to or less than that amount;
(ii) every person to whom the notice is
issued under sub-clause (i) shall be bound to
comply with such notice, and in particular,
where any such notice is issued to a post
office, banking company or an insurer, it shall
not be necessary to produce any pass book,
deposit receipt, policy or any other document
for the purpose of any entry, endorsement or
the like being made before payment is made,
notwithstanding
any
rule,
practice
or
requirement to the contrary;
(iii) in case the person to whom a notice
under sub-clause (i) has been issued, fails to
make the payment in pursuance thereof to the
Government, he shall be deemed to be a
defaulter in respect of the amount specified in
the notice and all the consequences of this Act
or the rules made thereunder shall follow;
(iv) the officer issuing a notice under
sub-clause (i) may, at any time, amend or
revoke such notice or extend the time for
making any payment in pursuance of the
notice;
(v) any person making any payment in
compliance with a notice issued under sub-
clause (i) shall be deemed to have made the
payment under the authority of the person in
644
LA GAZETTE DE L'ETAT
[PART–II
default and such payment being credited to the
Government shall be deemed to constitute a
good and sufficient discharge of the liability of
such person to the person in default to the
extent of the amount specified in the receipt;
(vi) any person discharging any liability
to the person in default after service on him
of the notice issued under sub-clause (i) shall
be personally liable to the Government to the
extent of the liability discharged or to the
extent of the liability of the person in default
for tax, interest and penalty, whichever is less;
(vii) where a person on whom a notice is
served under sub-clause (i) proves to the
satisfaction of the officer issuing the notice
that the money demanded or any part thereof
was not due to the person in default or that he
did not hold any money for or on account of
the person in default, at the time the notice
was served on him, nor is the money demanded
or any part thereof, likely to become due to
the said person or be held for or on account
of such person, nothing contained in this
section shall be deemed to require the person
on whom the notice has been served to pay to
the Government any such money or part
thereof;
(d) the proper officer may, in accordance with
the rules to be made in this behalf, distrain any
movable or immovable property belonging to or
under the control of such person, and detain the
same until the amount payable is paid; and in
case, any part of the said amount payable or of
the cost of the distress or keeping of the
property, remains unpaid for a period of thirty
days next after any such distress, may cause the
said property to be sold and with the proceeds of
such sale, may satisfy the amount payable and the
costs including cost of sale remaining unpaid and
shall render the surplus amount, if any, to such
person;
645
PART–II]
LA GAZETTE DE L'ETAT
(e) the proper
officer may prepare a
certificate signed by him specifying the amount
due from such person and send it to the Collector
of the district in which such person owns any
property or resides or carries on his business or
to any officer authorised by the Government and
the said Collector or the said officer, on receipt
of such certificate, shall proceed to recover
from
such
person
the
amount
specified
thereunder as if it were an arrear of land revenue;
(f) Notwithstanding anything contained in the
Code of Criminal Procedure, 1973, the proper
officer may file an application to the appropriate
Magistrate and such Magistrate shall proceed to
recover from such person the amount specified
thereunder as if it were a fine imposed by him.
(2) Where the terms of any bond or other
instrument executed under this Act or any rules or
regulations made thereunder provide that any amount
due under such instrument may be recovered in the
manner laid down in sub-section (1), the amount may,
without prejudice to any other mode of recovery, be
recovered in accordance with the provisions of that
sub-section.
(3) Where any amount of tax, interest or penalty
is payable by a person to the Government under any
of the provisions of this Act or the rules made
thereunder and which remains unpaid, the proper
officer of central tax, during the course of recovery
of said tax arrears, may recover the amount from the
said person as if it were an arrear of central tax and
credit the amount so recovered to the account of the
Government.
(4) Where the amount recovered under sub-
section (3) is less than the amount due to the Central
Government and State Government, the amount to be
credited to the account of the respective Governments
shall be in proportion to the amount due to each such
Government.
Central
Act 2
of 1974.
646
LA GAZETTE DE L'ETAT
[PART–II
80. On an application filed by a taxable person,
the Commissioner may, for reasons to be recorded in
writing, extend the time for payment or allow payment
of any amount due under this Act, other than the amount
due as per the liability self-assessed in any return, by
such person in monthly instalments not exceeding
twenty four, subject to payment of interest under
section 50 and subject to such conditions and
limitations as may be prescribed:
Provided that where there is default in payment
of any one instalment on its due date, the whole
outstanding balance payable on such date shall become
due and payable forthwith and shall, without any further
notice being served on the person, be liable for
recovery.
81. Where a person, after any amount has become
due from him, creates a charge on or parts with the
property belonging to him or in his possession by way
of sale, mortgage, exchange, or any other mode of
transfer whatsoever of any of his properties in favour
of any other person with the intention of defrauding
the Government revenue, such charge or transfer shall
be void as against any claim in respect of any tax or
any other sum payable by the said person:
Provided that, such charge or transfer shall not
be void if it is made for adequate consideration, in
good faith and without notice of the pendency of such
proceedings under this Act or without notice of such
tax or other sum payable by the said person, or with
the previous permission of the proper officer.
82. Notwithstanding anything to the contrary
contained in any law for the time being in force, save
as otherwise provided in the Insolvency and Bankruptcy
Code, 2016, any amount payable by a taxable person
or any other person on account of tax, interest or
penalty which he is liable to pay to the Government
shall be a first charge on the property of such taxable
person or such person.
Payment of
tax and other
amount in
instalments.
Transfer of
property to
be void in
certain
cases.
Central
Act 31
of 2016.
Tax to be
first charge
on property.
647
PART–II]
LA GAZETTE DE L'ETAT
83. (1) Where during the pendency of any
proceedings under section 62 or section 63 or section 64
or section 67 or section 73 or section 74, the
Commissioner is of the opinion that for the purpose
of protecting the interest of the Government revenue,
it is necessary so to do, he may, by order in writing
attach provisionally any property, including bank
account, belonging to the taxable person in such manner
as may be prescribed.
(2) Every such provisional attachment shall cease
to have effect after the expiry of a period of one year
from the date of the order made under sub-section (1).
84. Where any notice of demand in respect of any
tax, penalty, interest or any other amount payable under
this Act, (hereafter in this section referred to as
"Government dues"), is served upon any taxable person
or any other person and any appeal or revision
application is filed or any other proceedings is initiated
in respect of such Government dues, then—
(a) where such Government dues are enhanced
in such appeal, revision or other proceedings, the
Commissioner shall serve upon the taxable
person or any other person another notice of
demand in respect of the amount by which such
Government dues are enhanced and any recovery
proceedings in relation to such Government dues
as are covered by the notice of demand served
upon him before the disposal of such appeal,
revision or other proceedings may, without the
service of any fresh notice of demand, be
continued from the stage at which such
proceedings stood immediately before such
disposal;
(b) where such Government dues are reduced
in
such
appeal,
revision
or
in
other
proceedings—
(i) it shall not be necessary for the
Commissioner to serve upon the taxable person
a fresh notice of demand;
Provisional
attachment
to protect
revenue in
certain
cases.
Continuation
and
validation of
certain
recovery
proceedings.
648
LA GAZETTE DE L'ETAT
[PART–II
(ii) the Commissioner shall give intimation
of such reduction to him and to the appropriate
authority with whom recovery proceedings is
pending;
(iii) any recovery proceedings initiated on
the basis of the demand served upon him prior
to the disposal of such appeal, revision or other
proceedings may be continued in relation to
the amount so reduced from the stage at which
such proceedings stood immediately before
such disposal.
CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
85. (1) Where a taxable person, liable to pay tax
under this Act, transfers his business in whole or in
part, by sale, gift, lease, leave and license, hire or in
any other manner whatsoever, the taxable person and
the person to whom the business is so transferred
shall, jointly and severally, be liable wholly or to the
extent of such transfer, to pay the tax, interest or any
penalty due from the taxable person upto the time of
such transfer, whether such tax, interest or penalty has
been determined before such transfer, but has
remained unpaid or is determined thereafter.
(2) Where the transferee of a business referred
to in sub-section (1) carries on such business either
in his own name or in some other name, he shall be
liable to pay tax on the supply of goods or services or
both effected by him with effect from the date of such
transfer and shall, if he is a registered person under
this Act, apply within the prescribed time for
amendment of his certificate of registration.
86. Where an agent supplies or receives any
taxable goods on behalf of his principal, such agent and
his principal shall, jointly and severally, be liable to
pay the tax payable on such goods under this Act.
Liability in
case of
transfer of
business.
Liability of
agent and
principal.
649
PART–II]
LA GAZETTE DE L'ETAT
87. (1) When two or more companies are
amalgamated or merged in pursuance of an order of
court or of Tribunal or otherwise and the order is to
take effect from a date earlier to the date of the order
and any two or more of such companies have supplied
or received any goods or services or both to or from
each other during the period commencing on the date
from which the order takes effect till the date of the
order, then such transactions of supply and receipt
shall be included in the turnover of supply or receipt
of the respective companies and they shall be liable
to pay tax accordingly.
(2) Notwithstanding anything contained in the
said order, for the purposes of this Act, the said two
or more companies shall be treated as distinct
companies for the period up to the date of the said
order and the registration certificates of the said
companies shall be cancelled with effect from the date
of the said order.
88. (1) When any company is being wound up
whether under the orders of a court or Tribunal or
otherwise, every person appointed as receiver of any
assets of a company (hereafter in this section referred
to as the "liquidator"), shall, within thirty days after his
appointment, give intimation of his appointment to the
Commissioner.
(2) The Commissioner shall, after making such
inquiry or calling for such information as he may
deem fit, notify the liquidator within three months
from the date on which he receives intimation of the
appointment of the liquidator, the amount which in the
opinion of the Commissioner would be sufficient to
provide for any tax, interest or penalty which is then,
or is likely thereafter to become, payable by the
company.
(3) When any private company is wound up and
any tax, interest or penalty determined under this Act
on the company for any period, whether before or in
the course of or after its liquidation, cannot be
Liability in
case of
amalgamation
or merger of
companies.
Liability in
case of
company in
liquidation.
650
LA GAZETTE DE L'ETAT
[PART–II
recovered, then every person who was a director of
such company at any time during the period for which
the tax was due shall, jointly and severally, be liable
for the payment of such tax, interest or penalty, unless
he proves to the satisfaction of the Commissioner that
such non-recovery cannot be attributed to any gross
neglect, misfeasance or breach of duty on his part in
relation to the affairs of the company.
89. (1) Notwithstanding anything contained in the
Companies Act, 2013, where any tax, interest or
penalty due from a private company in respect of any
supply of goods or services or both for any period
cannot be recovered, then, every person who was a
director of the private company during such period
shall, jointly and severally, be liable for the payment
of such tax, interest or penalty unless he proves that
the non-recovery cannot be attributed to any gross
neglect, misfeasance or breach of duty on his part in
relation to the affairs of the company.
(2) Where a private company is converted into a
public company and the tax, interest or penalty in
respect of any supply of goods or services or both for
any period during which such company was a private
company cannot be recovered before such conversion,
then, nothing contained in sub-section (1) shall apply
to any person who was a director of such private
company in relation to any tax, interest or penalty in
respect of such supply of goods or services or both
of such private company:
Provided that nothing contained in this sub-
section shall apply to any personal penalty imposed on
such director.
90. Notwithstanding any contract to the contrary
and any other law for the time being in force, where
any firm is liable to pay any tax, interest or penalty
under this Act, the firm and each of the partners of the
firm shall, jointly and severally, be liable for such
payment:
Liability of
directors of
private
company.
Central
Act 18
of 2013.
Liability of
partners of
firm to pay
tax.
651
PART–II]
LA GAZETTE DE L'ETAT
Provided that where any partner retires from the
firm, he or the firm, shall intimate the date of
retirement of the said partner to the Commissioner by
a notice in that behalf in writing and such partner shall
be liable to pay tax, interest or penalty due upto the
date of his retirement whether determined or not,
on that date:
Provided further that if no such intimation is
given within one month from the date of retirement,
the liability of such partner under the first proviso shall
continue until the date on which such intimation is
received by the Commissioner.
91. Where the business in respect of which any
tax, interest or penalty is payable under this Act is
carried on by any guardian, trustee or agent of a
minor or other incapacitated person on behalf of
and for the benefit of such minor or other
incapacitated person, the tax, interest or penalty
shall be levied upon and recoverable from such
guardian, trustee or agent in like manner and to
the same extent as it would be determined and
recoverable from any such minor or other
incapacitated person, as if he were a major or
capacitated person and as if he were conducting
the business himself, and all the provisions of
this Act or the rules made thereunder shall apply
accordingly.
92. Where the estate or any portion of the
estate of a taxable person owning a business in respect
of which any tax, interest or penalty is payable under
this Act is under the control of the Court of Wards,
the Administrator General, the Official Trustee or any
receiver or manager (including any person, whatever
be his designation, who in fact manages the business)
appointed by or under any order of a court, the tax,
interest or penalty shall be levied upon and be
recoverable from such Court of Wards, Administrator
Liability of
guardians,
trustees, etc.
Liability of
Court of
Wards, etc.
652
LA GAZETTE DE L'ETAT
[PART–II
General, Official Trustee, receiver or manager in like
manner and to the same extent as it would be
determined and be recoverable from the taxable person
as if he were conducting the business himself, and all
the provisions of this Act or the rules made thereunder
shall apply accordingly.
93. (1) Save as otherwise provided in the
Insolvency and Bankruptcy Code, 2016, where a
person, liable to pay tax, interest or penalty under this
Act, dies, then—
(a) if a business carried on by the person is
continued
after
his
death
by
his
legal
representative or any other person, such legal
representative or other person, shall be liable to
pay tax, interest or penalty due from such person
under this Act; and
(b) if the business carried on by the person is
discontinued, whether before or after his death,
his legal representative shall be liable to pay, out
of the estate of the deceased, to the extent to
which the estate is capable of meeting the
charge, the tax, interest or penalty due from such
person under this Act,
whether such tax, interest or penalty has been
determined before his death but has remained unpaid
or is determined after his death.
(2) Save as otherwise provided in the Insolvency
and Bankruptcy Code, 2016, where a taxable person,
liable to pay tax, interest or penalty under this Act, is
a Hindu Undivided Family or an association of persons
and the property of the Hindu Undivided Family or the
association of persons is partitioned amongst the
various members or groups of members, then, each
member or group of members shall, jointly and
severally, be liable to pay the tax, interest or penalty
Special
provisions
regarding
liability to pay
tax, interest
or penalty in
certain cases.
Central
Act 31
of 2016.
Central
Act 31
of 2016.
653
PART–II]
LA GAZETTE DE L'ETAT
due from the taxable person under this Act upto the
time of the partition whether such tax, penalty or
interest has been determined before partition but has
remained unpaid or is determined after the partition.
(3) Save as otherwise provided in the Insolvency
and Bankruptcy Code, 2016, where a taxable person,
liable to pay tax, interest or penalty under this Act, is
a firm, and the firm is dissolved, then, every person
who was a partner shall, jointly and severally, be liable
to pay the tax, interest or penalty due from the firm
under this Act upto the time of dissolution whether
such tax, interest or penalty has been determined
before the dissolution, but has remained unpaid or is
determined after dissolution.
(4) Save as otherwise provided in the Insolvency
and Bankruptcy Code, 2016, where a taxable person
liable to pay tax, interest or penalty under this Act,-
(a) is the guardian of a ward on whose behalf
the business is carried on by the guardian; or
(b) is a trustee who carries on the business
under a trust for a beneficiary,
then, if the guardianship or trust is terminated, the ward
or the beneficiary shall be liable to pay the tax,
interest or penalty due from the taxable person upto
the time of the termination of the guardianship or
trust, whether such tax, interest or penalty has been
determined before the termination of guardianship or
trust but has remained unpaid or is determined
thereafter.
94. (1) Where a taxable person is a firm or an
association of persons or a Hindu Undivided Family
and such firm, association or family has discontinued
business-
(a) the tax, interest or penalty payable
under this Act by such firm, association or
family upto the date of such discontinuance may
be determined as if no such discontinuance had
taken place; and
Central
Act 31
of 2016.
Liability in
other cases.
Central
Act 31
of 2016.
654
LA GAZETTE DE L'ETAT
[PART–II
(b) every person who, at the time of such
discontinuance, was a partner of such firm, or a
member of such association or family, shall,
notwithstanding such discontinuance, jointly and
severally, be liable for the payment of tax and
interest determined and penalty imposed and
payable by such firm, association or family,
whether such tax and interest has been
determined or penalty imposed prior to or after
such discontinuance and subject as aforesaid, the
provisions of this Act shall, so far as may be,
apply as if every such person or partner or
member were himself a taxable person.
(2) Where a change has occurred in the
constitution of a firm or an association of persons, the
partners of the firm or members of association, as it
existed before and as it exists after the reconstitution,
shall, without prejudice to the provisions of section
90, jointly and severally, be liable to pay tax, interest
or penalty due from such firm or association for any
period before its reconstitution.
(3) The provisions of sub-section (1) shall, so
far as may be, apply where the taxable person, being
a firm or association of persons is dissolved or
where the taxable person, being a Hindu Undivided
Family, has effected partition with respect to the
business carried on by it and accordingly references
in that sub-section to discontinuance shall be
construed as reference to dissolution or to partition.
Explanation.—For the purposes of this Chapter,—
(i) a "Limited Liability Partnership" formed and
registered under the provisions of the Limited
Liability Partnership Act, 2008 shall also be
considered as a firm;
(ii) "court" means the District Court, High Court
or Supreme Court.
Central
Act 6
of 2009.
655
PART–II]
LA GAZETTE DE L'ETAT
CHAPTER XVII
ADVANCE R ULING
95. In this Chapter, unless the context otherwise
requires,—
(a) "advance ruling" means a decision provided
by the Authority or the Appellate Authority to an
applicant on matters or on questions specified in
sub-section (2) of section 97 or sub-section (1)
of section 100, in relation to the supply of goods
or services or both being undertaken or proposed
to be undertaken by the applicant;
(b) "Appellate Authority" means the Appellate
Authority for Advance Ruling constituted under
section 99;
(c) "applicant" means any person registered or
desirous of obtaining registration under this Act;
(d) "application" means an application made to
the Authority under sub-section (1) of section 97;
(e) "Authority" means the Authority for
Advance Ruling, constituted under section 96.
96. (1) The Government shall, by notification,
constitute an Authority to be known as the Puducherry
Authority for Advance Ruling:
Provided that the Government may, on the
recommendation of the Council, notify any Authority
located in another State to act as the Authority for the
State.
(2) The Authority shall consist of-
(i) one member from amongst the
officers of central tax; and
(ii) one member from amongst the
officers of State tax,
to be appointed by the Central Government and the
State Government, respectively.
Definitions.
Constitution
of Authority
for Advance
Ruling.
656
LA GAZETTE DE L'ETAT
[PART–II
(3)
The
qualifications,
the
method
of
appointment of the members and the terms and
conditions of their services shall be such as may be
prescribed.
97. (1) An applicant desirous of obtaining an
advance ruling under this Chapter may make an
application in such form and manner and accompanied
by such fee as may be prescribed, stating the
question on which the advance ruling is sought.
(2) The question on which the advance ruling
is sought under this Act, shall be in respect of, -
(a) classification of any goods or services
or both;
(b) applicability of a notification issued
under the provisions of this Act;
(c) determination of time and value of
supply of goods or services or both;
(d) admissibility of input tax credit of tax
paid or deemed to have been paid;
(e) determination of the liability to pay tax
on any goods or services or both;
(f) whether applicant is required to be
registered;
(g) whether any particular thing done by the
applicant with respect to any goods or services
or both amounts to or results in a supply of
goods or services or both, within the meaning
of that term.
98. (1) On receipt of an application, the
Authority shall cause a copy thereof to be forwarded
to the concerned officer and, if necessary, call upon
him to furnish the relevant records:
Provided that where any records have been called
for by the Authority in any case, such records shall,
as soon as possible, be returned to the said concerned
officer.
Application
for advance
ruling.
Procedure on
receipt of
application.
657
PART–II]
LA GAZETTE DE L'ETAT
(2) The Authority may, after examining the
application and the records called for and after hearing
the applicant or his authorised representative and the
concerned officer or his authorised representative, by
order, either admit or reject the application:
Provided that the Authority shall not admit the
application where the question raised in the
application is already pending or decided in any
proceedings in the case of an applicant under any of
the provisions of this Act:
Provided further that no application shall be
rejected under this sub-section unless an opportunity
of hearing has been given to the applicant:
Provided also that where the application is
rejected, the reasons for such rejection shall be
specified in the order.
(3) A copy of every order made under sub-section (2)
shall be sent to the applicant and to the concerned
officer.
(4) Where an application is admitted under sub-
section (2), the Authority shall, after examining such
further material as may be placed before it by the
applicant or obtained by the Authority and after
providing an opportunity of being heard to the
applicant or his authorised representative as well as to
the concerned officer or his authorised representative,
pronounce its advance ruling on the question specified
in the application.
(5) Where the members of the Authority differ
on any question on which the advance ruling is sought,
they shall state the point or points on which they differ
and make a reference to the Appellate Authority for
hearing and decision on such question.
(6) The Authority shall pronounce its advance
ruling in writing within ninety days from the date of
receipt of application.
658
LA GAZETTE DE L'ETAT
[PART–II
(7) A copy of the advance ruling pronounced by
the Authority duly signed by the members and certified
in such manner as may be prescribed shall be sent to
the applicant, the concerned officer and the
jurisdictional officer after such pronouncement.
99. The Government shall, by notification,
constitute an Authority to be known as Puducherry
Appellate Authority for Advance Ruling for Goods and
Services Tax for hearing appeals against the advance
ruling pronounced by the Advance Ruling Authority,
consisting of-
(i) the Chief Commissioner of central tax as
designated by the Board; and
(ii) the Commissioner of State tax:
Provided that the Government may, on the
recommendations of the Council, notify any Appellate
Authority located in another State or Union territory
to act as the Appellate Authority for the State.
100. (1) The concerned officer, the jurisdictional
officer or an applicant aggrieved by any advance ruling
pronounced under sub-section (4) of section 98, may
appeal to the Appellate Authority.
(2) Every appeal under this section shall be
filed within a period of thirty days from the date
on which the ruling sought to be appealed against
is communicated to the concerned officer, the
jurisdictional officer and the applicant:
Provided that the Appellate Authority may, if it
is satisfied that the appellant was prevented by a
sufficient cause from presenting the appeal within the
said period of thirty days, allow it to be presented
within a further period not exceeding thirty days.
(3) Every appeal under this section shall be in
such form, accompanied by such fee and verified in
such manner as may be prescribed.
Constitution
of Appellate
Authority for
Advance
Ruling.
Appeal to
Appellate
Authority.
659
PART–II]
LA GAZETTE DE L'ETAT
101. (1) The Appellate Authority may, after
giving the parties to the appeal or reference an
opportunity of being heard, pass such order as it thinks
fit, confirming or modifying the ruling appealed against
or referred to.
(2) The order referred to in sub-section (1) shall
be passed within a period of ninety days from the date
of filing of the appeal under section 100 or a
reference under sub-section (5) of section 98.
(3) Where the members of the Appellate
Authority differ on any point or points referred to in
appeal or reference, it shall be deemed that no advance
ruling can be issued in respect of the question under
the appeal or reference.
(4) A copy of the advance ruling pronounced by
the Appellate Authority duly signed by the Members
and certified in such manner as may be prescribed shall
be sent to the applicant, the concerned officer, the
jurisdictional officer and to the Authority after such
pronouncement.
102. The Authority or the Appellate Authority
may amend any order passed by it under section 98 or
section 101, so as to rectify any error apparent on the
face of the record, if such error is noticed by the
Authority or the Appellate Authority on its own accord,
or is brought to its notice by the concerned officer,
the jurisdictional officer, or the applicant or the
appellant within a period of six months from the date
of the order:
Provided that no rectification which has the
effect of enhancing the tax liability or reducing the
amount of admissible input tax credit shall be made
unless the applicant or the appellant has been given an
opportunity of being heard.
Orders of
Appellate
Authority.
Rectification
of advance
ruling.
660
LA GAZETTE DE L'ETAT
[PART–II
103. (1) The advance ruling pronounced by the
Authority or the Appellate Authority under this
Chapter shall be binding only -
(a) on the applicant who had sought it in
respect of any matter referred to in sub-section
(2) of section 97 for advance ruling;
(b)
on
the
concerned
officer
or
the
jurisdictional officer in respect of the applicant.
(2) The advance ruling referred to in sub-section (1)
shall be binding unless the law, facts or circumstances
supporting the original advance ruling have changed.
104. (1) Where the Authority or the Appellate
Authority finds that advance ruling pronounced by
it under sub-section (4) of section 98 or under
sub-section (1) of section 101 has been obtained by
the applicant or the appellant by fraud or suppression
of material facts or misrepresentation of facts, it
may, by order, declare such ruling to be void ab-initio
and thereupon all the provisions of this Act or the
rules made thereunder shall apply to the applicant or
the appellant as if such advance ruling had never been
made:
Provided that no order shall be passed under this
sub-section unless an opportunity of being heard has
been given to the applicant or the appellant.
Explanation.—The period beginning with the
date of such advance ruling and ending with the date
of order under this sub-section shall be excluded while
computing the period specified in sub-sections (2) and
(10) of section 73 or sub-sections (2) and (10) of
section 74.
(2) A copy of the order made under sub-section (1)
shall be sent to the applicant, the concerned officer
and the jurisdictional officer.
Applicability
of advance
ruling.
Advance
ruling to be
void in
certain
circumstances.
661
PART–II]
LA GAZETTE DE L'ETAT
105. (1) The Authority or the Appellate Authority
shall, for the purpose of exercising its powers
regarding—
(a) discovery and inspection;
(b) enforcing the attendance of any person and
examining him on oath;
(c) issuing commissions and compelling
production of books of account and other
records,
have all the powers of a civil court under the Code of
Civil Procedure, 1908.
(2) The Authority or the Appellate Authority shall
be deemed to be a civil court for the purposes of
section 195, but not for the purposes of Chapter XXVI
of the Code of Criminal Procedure, 1973, and every
proceeding before the Authority or the Appellate
Authority shall be deemed to be a judicial proceedings
within the meaning of sections 193 and 228, and for
the purpose of section 196 of the Indian Penal Code.
106. The Authority or the Appellate Authority
shall, subject to the provisions of this Chapter, have
power to regulate its own procedure.
CHAPTER XVIII
APPEALS AND REVISION
107. (1) Any person aggrieved by any decision
or order passed under this Act or the Central Goods
and Services Tax Act by an adjudicating authority may
appeal to such Appellate Authority as may be
prescribed within three months from the date on which
the said decision or order is communicated to such
person.
(2) The Commissioner may, on his own motion,
or upon request from the Commissioner of central tax,
call for and examine the record of any proceeding in
which an adjudicating authority has passed any decision
Powers of
Authority
and Appellate
Authority.
Procedure of
Authority and
Appellate
Authority.
Central
Act 5
of 1908.
Central
Act 2
of 1974.
Central
Act 45
of 1860.
Appeals to
Appellate
Authority.
662
LA GAZETTE DE L'ETAT
[PART–II
or order under this Act or the Central Goods and
Services Tax Act, for the purpose of satisfying himself
as to the legality or propriety of the said decision or
order and may, by order, direct any officer subordinate
to him to apply to the Appellate Authority within six
months from the date of communication of the said
decision or order for the determination of such points
arising out of the said decision or order as may be
specified by the Commissioner in his order.
(3) Where, in pursuance of an order under sub-
section (2), the authorised officer makes an
application to the Appellate Authority, such application
shall be dealt with by the Appellate Authority as if it
were an appeal made against the decision or order of
the adjudicating authority and such authorised officer
were an appellant and the provisions of this Act
relating to appeals shall apply to such application.
(4) The Appellate Authority may, if he is satisfied
that the appellant was prevented by sufficient cause
from presenting the appeal within the aforesaid period
of three months or six months, as the case may be,
allow it to be presented within a further period of one
month.
(5) Every appeal under this section shall be in
such form and shall be verified in such manner as may
be prescribed.
(6) No appeal shall be filed under sub-section (1),
unless the appellant has paid-
(a) in full, such part of the amount of tax,
interest, fine, fee and penalty arising from the
impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the
remaining amount of tax in dispute arising from
the said order, in relation to which the appeal has
been filed.
663
PART–II]
LA GAZETTE DE L'ETAT
(7) Where the appellant has paid the amount
under sub-section (6), the recovery proceedings for
the balance amount shall be deemed to be stayed.
(8) The Appellate Authority shall give an
opportunity to the appellant of being heard.
(9) The Appellate Authority may, if sufficient
cause is shown at any stage of hearing of an appeal,
grant time to the parties or any of them and adjourn
the hearing of the appeal for reasons to be recorded
in writing:
Provided that no such adjournment shall be
granted more than three times to a party during
hearing of the appeal.
(10) The Appellate Authority may, at the time of
hearing of an appeal, allow an appellant to add any
ground of appeal not specified in the grounds of
appeal, if it is satisfied that the omission of that
ground from the grounds of appeal was not wilful or
unreasonable.
(11) The Appellate Authority shall, after making
such further inquiry as may be necessary, pass such
order, as it thinks just and proper, confirming,
modifying or annulling the decision or order appealed
against but shall not refer the case back to the
adjudicating authority that passed the said decision or
order:
Provided that an order enhancing any fee or
penalty or fine in lieu of confiscation or confiscating
goods of greater value or reducing the amount of
refund or input tax credit shall not be passed unless
the appellant has been given a reasonable opportunity
of showing cause against the proposed order:
Provided further that where the Appellate
Authority is of the opinion that any tax has not been
paid or short-paid or erroneously refunded, or where
664
LA GAZETTE DE L'ETAT
[PART–II
input tax credit has been wrongly availed or utilised,
no order requiring the appellant to pay such tax or
input tax credit shall be passed unless the appellant is
given notice to show cause against the proposed order
and the order is passed within the time limit specified
under section 73 or section 74.
(12) The order of the Appellate Authority
disposing of the appeal shall be in writing and shall
state the points for determination, the decision thereon
and the reasons for such decision.
(13) The Appellate Authority shall, where it is
possible to do so, hear and decide every appeal within
a period of one year from the date on which it is filed:
Provided that where the issuance of order is
stayed by an order of a court or Tribunal, the period
of such stay shall be excluded in computing the period
of one year.
(14) On disposal of the appeal, the Appellate
Authority shall communicate the order passed by it to
the appellant, respondent and to the adjudicating
authority.
(15) A copy of the order passed by the
Appellate Authority shall also be sent to the
Commissioner or the authority designated by him in
this behalf and the jurisdictional Commissioner of
central tax or an authority designated by him in this
behalf.
(16) Every order passed under this section
shall, subject to the provisions of section 108 or
section 113 or section 117 or section 118 be final
and binding on the parties.
108. (1) Subject to the provisions of section 121
and any rules made thereunder, the Revisional
Authority may, on his own motion, or upon
information received by him or on request from the
Commissioner of central tax, call for and examine
Powers of
Revisional
Authority.
665
PART–II]
LA GAZETTE DE L'ETAT
the record of any proceedings, and if he considers
that any decision or order passed under this Act or
under the Central Goods and Services Tax Act by any
officer subordinate to him is erroneous in so far as
it is prejudicial to the interest of revenue and is
illegal or improper or has not taken into account
certain material facts, whether available at the time
of issuance of the said order or not or in
consequence of an observation by the Comptroller
and Auditor General of India, he may, if necessary,
stay the operation of such decision or order for such
period as he deems fit and after giving the person
concerned an opportunity of being heard and after
making such further inquiry as may be necessary,
pass such order, as he thinks just and proper,
including enhancing or modifying or annulling the
said decision or order.
(2) The Revisional Authority shall not exercise
any power under sub-section (1), if—
(a) the order has been subject to an appeal
under section 107 or section 112 or section 117
or section 118; or
(b) the period specified under sub-section (2)
of section 107 has not yet expired or more than
three years have expired after the passing of the
decision or order sought to be revised; or
(c) the order has already been taken for
revision under this section at an earlier stage; or
(d) the order has been passed in exercise of
the powers under sub-section (1):
Provided that the Revisional Authority may pass
an order under sub-section (1) on any point which has
not been raised and decided in an appeal referred to
in clause (a) of sub-section (2), before the expiry of
a period of one year from the date of the order in such
appeal or before the expiry of a period of three years
referred to in clause (b) of that sub-section, whichever
is later.
666
LA GAZETTE DE L'ETAT
[PART–II
(3) Every order passed in revision under
sub-section (1) shall, subject to the provisions of
section 113 or section 117 or section 118, be final
and binding on the parties.
(4) If the said decision or order involves an issue
on which the Appellate Tribunal or the High Court has
given its decision in some other proceedings and an
appeal to the High Court or the Supreme Court against
such decision of the Appellate Tribunal or the High
Court is pending, the period spent between the date of
the decision of the Appellate Tribunal and the date of
the decision of the High Court or the date of the
decision of the High Court and the date of the decision
of the Supreme Court shall be excluded in computing
the period of limitation referred to in clause (b) of
sub-section (2) where proceedings for revision have
been initiated by way of issue of a notice under this
section.
(5) Where the issuance of an order under
sub-section (1) is stayed by the order of a court or
Appellate Tribunal, the period of such stay shall be
excluded in computing the period of limitation
referred to in clause (b) of sub-section (2).
(6) For the purposes of this section, the term,—
(i) "record" shall include all records relating
to any proceedings under this Act available at the
time of examination by the Revisional Authority;
(ii) "decision" shall include intimation given
by any officer lower in rank than the Revisional
Authority.
109. (1) Subject to the provisions of this
Chapter, the Goods and Services Tax Tribunal
constituted under the Central Goods and Services Tax
Act shall be the Appellate Tribunal for hearing appeals
against the orders passed by the Appellate Authority or
the Revisional Authority under this Act.
Appellate
Tribunal and
Benches
thereof.
667
PART–II]
LA GAZETTE DE L'ETAT
(2) The constitution and jurisdiction of the State
Bench and the Area Benches located in the State shall
be in accordance with the provisions of section 109
of the Central Goods and Services Tax Act or the rules
made thereunder.
110. The qualifications, appointment, salary and
allowances, terms of office, resignation and removal
of the President and Members of the State Bench and
Area Benches shall be in accordance with the
provisions of section 110 of the Central Goods and
Services Tax Act.
111. (1) The Appellate Tribunal shall not, while
disposing of any proceedings before it or an appeal
before it, be bound by the procedure laid down in the
Code of Civil Procedure, 1908, but shall be guided by
the principles of natural justice and subject to the
other provisions of this Act and the rules made
thereunder, the Appellate Tribunal shall have power to
regulate its own procedure.
(2) The Appellate Tribunal shall, for the purposes
of discharging its functions under this Act, have the
same powers as are vested in a civil court under the
Code of Civil Procedure, 1908, while trying a suit in
respect of the following matters, namely:-
(a) summoning and enforcing the attendance
of any person and examining him on oath;
(b) requiring the discovery and production of
documents;
(c) receiving evidence on affidavits;
(d) subject to the provisions of sections 123
and 124 of the Indian Evidence Act, 1872,
requisitioning any public record or document or
a copy of such record or document from any
office;
(e) issuing commissions for the examination
of witnesses or documents;
President and
Members of
Appellate
Tribunal, their
qualification,
appointment,
conditions of
service, etc.
Procedure
before
Appellate
Tribunal.
Central
Act 5
of 1908.
Central
Act 5
of 1908.
Central
Act 1
of 1872.
668
LA GAZETTE DE L'ETAT
[PART–II
(f) dismissing a representation for default or
deciding it ex parte;
(g) setting aside any order of dismissal of any
representation for default or any order passed
by it exparte; and
(h) any other matter which may be prescribed.
(3) Any order made by the Appellate Tribunal may
be enforced by it in the same manner as if it were a
decree made by a court in a suit pending therein, and
it shall be lawful for the Appellate Tribunal to send for
execution of its orders to the court within the local
limits of whose jurisdiction,-
(a) in the case of an order against a company,
the registered office of the company is situated;
or
(b) in the case of an order against any other
person, the person concerned voluntarily resides
or carries on business or personally works for
gain.
(4) All proceedings before the Appellate Tribunal
shall be deemed to be judicial proceedings within the
meaning of sections 193 and 228, and for the purposes
of section 196 of the Indian Penal Code, and the
Appellate Tribunal shall be deemed to be civil court
for the purposes of section 195 and Chapter XXVI of
the Code of Criminal Procedure, 1973.
112. (1) Any person aggrieved by an order
passed against him under section 107 or section 108
of this Act or the Central Goods and Services Tax
Act may appeal to the Appellate Tribunal against
such order within three months from the date on
which the order sought to be appealed against is
communicated to the person preferring the appeal.
Central
Act 45
of 1860.
Central
Act 2
of 1974.
Appeals to
Appellate
Tribunal.
669
PART–II]
LA GAZETTE DE L'ETAT
(2) The Appellate Tribunal may, in its discretion,
refuse to admit any such appeal where the tax or input
tax credit involved or the difference in tax or input tax
credit involved or the amount of fine, fee or penalty
determined by such order, does not exceed fifty
thousand rupees.
(3) The Commissioner may, on his own motion,
or upon request from the Commissioner of central tax,
call for and examine the record of any order passed
by the Appellate Authority or the Revisional Authority
under this Act or under the Central Goods and Services
Tax Act for the purpose of satisfying himself as to the
legality or propriety of the said order and may, by
order, direct any officer subordinate to him to apply
to the Appellate Tribunal within six months from the
date on which the said order has been passed for
determination of such points arising out of the said
order as may be specified by the Commissioner in his
order.
(4) Where in pursuance of an order under sub-
section (3) the authorised officer makes an application
to the Appellate Tribunal, such application shall be
dealt with by the Appellate Tribunal as if it were an
appeal made against the order under sub-section (11)
of section 107 or under sub-section (1) of section 108
and the provisions of this Act shall apply to such
application, as they apply in relation to appeals filed
under sub-section (1).
(5) On receipt of notice that an appeal has been
preferred under this section, the party against whom
the appeal has been preferred may, notwithstanding that
he may not have appealed against such order or any
part thereof, file, within forty-five days of the receipt
of notice, a memorandum of cross-objections, verified
in the prescribed manner, against any part of the order
appealed against and such memorandum shall be
disposed of by the Appellate Tribunal, as if it were an
appeal presented within the time specified in
sub-section (1).
670
LA GAZETTE DE L'ETAT
[PART–II
(6) The Appellate Tribunal may admit an appeal
within three months after the expiry of the period
referred to in sub-section (1), or permit the filing of
a memorandum of cross-objections within forty-five
days after the expiry of the period referred to in sub-
section (5), if it is satisfied that there was sufficient
cause for not presenting it within that period.
(7) An appeal to the Appellate Tribunal shall be
in such form, verified in such manner and shall be
accompanied by such fee, as may be prescribed.
(8) No appeal shall be filed under sub-section
(1), unless the appellant has paid—
(a) in full, such part of the amount of tax,
interest, fine, fee and penalty arising from the
impugned order, as is admitted by him; and
(b) a sum equal to twenty per cent. of the
remaining amount of tax in dispute, in addition
to the amount paid under sub-section (6) of
section 107, arising from the said order, in
relation to which the appeal has been filed.
(9) Where the appellant has paid the amount as
per sub-section (8), the recovery proceedings for the
balance amount shall be deemed to be stayed till the
disposal of the appeal.
(10) Every application made before the Appellate
Tribunal, -
(a) in an appeal for rectification of error or
for any other purpose; or
(b) for restoration of an appeal or an
application,
shall be accompanied by such fees as may be
prescribed.
671
PART–II]
LA GAZETTE DE L'ETAT
113. (1) The Appellate Tribunal may, after
giving the parties to the appeal an opportunity of
being heard, pass such orders thereon as it thinks
fit, confirming, modifying or annulling the
decision or order appealed against or may refer
the case back to the Appellate Authority, or the
Revisional
Authority
or
to
the
original
adjudicating authority, with such directions as it
may think fit, for a fresh adjudication or decision
after taking additional evidence, if necessary.
(2) The Appellate Tribunal may, if sufficient
cause is shown, at any stage of hearing of an appeal,
grant time to the parties or any of them and adjourn
the hearing of the appeal for reasons to be recorded
in writing:
Provided that no such adjournment shall be
granted more than three times to a party during
hearing of the appeal.
(3) The Appellate Tribunal may amend any order
passed by it under sub-section (1) so as to rectify any
error apparent on the face of the record, if such error
is noticed by it on its own accord, or is brought to its
notice by the Commissioner or the Commissioner of
central tax or the other party to the appeal within a
period of three months from the date of the order:
Provided that no amendment which has the effect
of enhancing an assessment or reducing a refund or
input tax credit or otherwise increasing the liability of
the other party, shall be made under this sub-section,
unless the party has been given an opportunity of being
heard.
(4) The Appellate Tribunal shall, as far as
possible, hear and decide every appeal within a period
of one year from the date on which it is filed.
(5) The Appellate Tribunal shall send a copy of
every order passed under this section to the Appellate
Authority or the Revisional Authority, or the original
Orders of
Appellate
Tribunal.
672
LA GAZETTE DE L'ETAT
[PART–II
adjudicating authority, as the case may be, the appellant
and
the
Commissioner
or
the
jurisdictional
Commissioner of central tax.
(6) Save as provided in section 117 or section 118,
orders passed by the Appellate Tribunal on an appeal
shall be final and binding on the parties.
114. The State President shall exercise such
financial and administrative powers over the State
Bench and Area Benches of the Appellate Tribunal in
a State, as may be prescribed:
Provided that the State President shall have the
authority to delegate such of his financial and
administrative powers as he may think fit to any other
Member or any officer of the State Bench or Area
Benches, subject to the condition that such Member
or officer shall, while exercising such delegated
powers, continue to act under the direction, control
and supervision of the State President.
115. Where an amount paid by the appellant
under sub-section (6) of section 107 or sub-section (8)
of section 112 is required to be refunded consequent
to any order of the Appellate Authority or of the
Appellate Tribunal, interest at the rate specified under
section 56 shall be payable in respect of such refund
from the date of payment of the amount till the date
of refund of such amount.
116. (1) Any person who is entitled or required
to appear before an officer appointed under this Act,
or the Appellate Authority or the Appellate Tribunal in
connection with any proceedings under this Act, may,
otherwise than when required under this Act to appear
personally for examination on oath or affirmation,
subject to the other provisions of this section, appear
by an authorised representative.
(2) For the purposes of this Act, the expression
"authorised representative" shall mean a person authorised
by the person referred to in sub-section (1) to appear
on his behalf, being -
(a) his relative or regular employee; or
Financial and
administrative
powers of
State
President.
Interest on
refund of
amount paid
for
admission of
appeal.
Appearance
by
authorised
representative.
673
PART–II]
LA GAZETTE DE L'ETAT
(b) an advocate who is entitled to practice in
any court in India, and who has not been debarred
from practising before any court in India; or
(c)
any
chartered
accountant,
a
cost
accountant or a company secretary, who holds a
certificate of practice and who has not been
debarred from practice; or
(d) a retired officer of the Commercial Tax
Department of any State Government or Union
territory or of the Board who, during his service
under the Government, had worked in a post not
below the rank than that of a Group-B Gazetted
officer for a period of not less than two years:
Provided that such officer shall not be entitled
to appear before any proceedings under this Act
for a period of one year from the date of his
retirement or resignation; or
(e) any person who has been authorised to act
as a goods and services tax practitioner on behalf
of the concerned registered person.
(3) No person,—
(a) who has been dismissed or removed from
Government service; or
(b) who is convicted of an offence connected
with any proceedings under this Act, the Central
Goods and Services Tax Act, the Integrated
Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act, or under
the existing law or under any of the Acts passed
by a State Legislature dealing with the
imposition of taxes on sale of goods or supply
of goods or services or both; or
(c) who is found guilty of misconduct by the
prescribed authority; or
(d) who has been adjudged as an insolvent,
674
LA GAZETTE DE L'ETAT
[PART–II
shall be qualified to represent any person under
sub-section (1)—
(i) for all times in case of persons referred to
in clauses (a) (b) and (c); and
(ii) for the period during which the insolvency
continues in the case of a person referred to in
clause (d).
(4) Any person who has been disqualified under
the provisions of the Central Goods and Services Tax
Act or the Goods and Services Tax Act of any other
State or the Union Territory Goods and Services Tax
Act shall be deemed to be disqualified under this Act.
117. (1) Any person aggrieved by any order
passed by the State Bench or Area Benches of the
Appellate Tribunal may file an appeal to the High
Court and the High Court may admit such appeal, if it
is satisfied that the case involves a substantial
question of law.
(2) An appeal under sub-section (1) shall be filed
within a period of one hundred and eighty days from
the date on which the order appealed against is
received by the aggrieved person and it shall be in such
form, verified in such manner as may be prescribed:
Provided that the High Court may entertain an
appeal after the expiry of the said period if it is
satisfied that there was sufficient cause for not filing
it within such period.
(3) Where the High Court is satisfied that a
substantial question of law is involved in any case, it
shall formulate that question and the appeal shall be
heard only on the question so formulated, and the
respondents shall, at the hearing of the appeal, be
allowed to argue that the case does not involve such
question:
Appeal to
High Court.
675
PART–II]
LA GAZETTE DE L'ETAT
Provided that nothing in this sub-section shall be
deemed to take away or abridge the power of the court
to hear, for reasons to be recorded, the appeal on any
other substantial question of law not formulated by it,
if it is satisfied that the case involves such question.
(4) The High Court shall decide the question of
law so formulated and deliver such judgment thereon
containing the grounds on which such decision is
founded and may award such cost as it deems fit.
(5) The High Court may determine any issue
which-
(a) has not been determined by the State
Bench or Area Benches; or
(b) has been wrongly determined by the State
Bench or Area Benches, by reason of a decision
on such question of law as herein referred to in
sub-section (3).
(6) Where an appeal has been filed before the
High Court, it shall be heard by a Bench of not less
than two Judges of the High Court, and shall be
decided in accordance with the opinion of such Judges
or of the majority, if any, of such Judges.
(7) Where there is no such majority, the Judges
shall state the point of law upon which they differ and
the case shall, then, be heard upon that point only, by
one or more of the other Judges of the High Court and
such point shall be decided according to the opinion
of the majority of the Judges who have heard the case
including those who first heard it.
(8) Where the High Court delivers a judgment in
an appeal filed before it under this section, effect
shall be given to such judgment by either side on the
basis of a certified copy of the judgment.
(9) Save as otherwise provided in this Act, the
provisions of the Code of Civil Procedure, 1908,
relating to appeals to the High Court shall, as far as
may be, apply in the case of appeals under this section.
Central
Act 5
of 1908.
676
LA GAZETTE DE L'ETAT
[PART–II
118. (1) An appeal shall lie to the Supreme Court-
(a) from any order passed by the National
Bench or Regional Benches of the Appellate
Tribunal; or
(b) from any judgment or order passed by the
High Court in an appeal made under section 117
in any case which, on its own motion or on an
application made by or on behalf of the party
aggrieved, immediately after passing of the
judgment or order, the High Court certifies to
be a fit one for appeal to the Supreme Court.
(2) The provisions of the Code of Civil
Procedure, 1908, relating to appeals to the Supreme
Court shall, so far as may be, apply in the case of
appeals under this section as they apply in the case
of appeals from decrees of a High Court.
(3) Where the judgment of the High Court is
varied or reversed in the appeal, effect shall be given
to the order of the Supreme Court in the manner
provided in section 117 in the case of a judgment
of the High Court.
119. Notwithstanding that an appeal has been
preferred to the High Court or the Supreme Court,
sums due to the Government as a result of an order
passed by the National or Regional Benches of the
Appellate Tribunal under sub-section (1) of section 113
or an order passed by the State Bench or Area
Benches of the Appellate Tribunal under sub-section (1)
of section 113 or an order passed by the High Court
under section 117, as the case may be, shall be
payable in accordance with the order so passed.
120. (1) The Commissioner may, on the
recommendations of the Council, from time to
time, issue orders or instructions or directions
fixing such monetary limits, as he may deem fit, for
the purposes of regulating the filing of appeal or
application by the officer of the State tax under the
provisions of this Chapter.
Appeal to
Supreme
Court.
Sums due to
be paid
notwithstanding
appeal, etc.
Appeal not
to be filed in
certain
cases.
Central
Act 5
of 1908.
677
PART–II]
LA GAZETTE DE L'ETAT
(2) Where,
in pursuance of the orders or
instructions or directions issued under sub-section (1),
the officer of the State tax has not filed an appeal or
application against any decision or order passed under
the provisions of this Act, it shall not preclude such
officer of the State tax from filing appeal or
application in any other case involving the same or
similar issues or questions of law.
(3) Notwithstanding the fact that no appeal or
application has been filed by the officer of the State
tax pursuant to the orders or instructions or directions
issued under sub-section (1), no person, being a party
in appeal or application shall contend that the officer
of the State tax has acquiesced in the decision on the
disputed issue by not filing an appeal or application.
(4) The Appellate Tribunal or court hearing such
appeal or application shall have regard to the
circumstances under which appeal or application was
not filed by the officer of the State tax in pursuance
of the orders or instructions or directions issued under
sub-section (1).
121. Notwithstanding anything to the contrary in
any provisions of this Act, no appeal shall lie against
any decision taken or order passed by an officer of
State tax if such decision taken or order passed relates
to any one or more of the following matters, namely:-
(a) an order of the Commissioner or other
authority empowered to direct transfer of
proceedings from one officer to another officer;
or
(b) an order pertaining to the seizure or
retention of books of account, register and
other documents; or
(c) an order sanctioning prosecution under
this Act; or
(d) an order passed under section 80.
Non-
appealable
decisions
and orders.
678
LA GAZETTE DE L'ETAT
[PART–II
CHAPTER XIX
OFFENCES
AND PENALTIES
122. (1) Where a taxable person who—
(i) supplies any goods or services or both
without issue of any invoice or issues an
incorrect or false invoice with regard to any such
supply;
(ii) issues any invoice or bill without supply
of goods or services or both in violation of the
provisions of this Act or the rules made
thereunder;
(iii) collects any amount as tax but fails to pay
the same to the Government beyond a period of
three months from the date on which such
payment becomes due;
(iv) collects any tax in contravention of the
provisions of this Act but fails to pay the same
to the Government beyond a period of three
months from the date on which such payment
becomes due;
(v) fails to deduct the tax in accordance with
the provisions of sub-section (1) of section 51,
or deducts an amount which is less than the
amount required to be deducted under the said
sub-section, or where he fails to pay to the
Government under sub-section (2) thereof, the
amount deducted as tax;
(vi) fails to collect tax in accordance with the
provisions of sub-section (1) of section 52, or
collects an amount which is less than the amount
required to be collected under the said sub-section
or where he fails to pay to the Government the
amount collected as tax under sub-section (3) of
section 52;
Penalty for
certain
offences.
679
PART–II]
LA GAZETTE DE L'ETAT
(vii) takes or utilises input tax credit without
actual receipt of goods or services or both either
fully or partially, in contravention of the
provisions of this Act or the rules made
thereunder;
(viii) fraudulently obtains refund of tax under
this Act;
(ix) takes or distributes input tax credit in
contravention of section 20, or the rules made
thereunder;
(x) falsifies or substitutes financial records or
produces fake accounts or documents or
furnishes any false information or return with an
intention to evade payment of tax due under this
Act;
(xi) is liable to be registered under this Act
but fails to obtain registration;
(xii) furnishes any false information with
regard to registration particulars, either at the
time of applying for registration, or subsequently;
(xiii) obstructs or prevents any officer in
discharge of his duties under this Act;
(xiv) transports any taxable goods without the
cover of documents as may be specified in this
behalf;
(xv) suppresses his turnover leading to evasion
of tax under this Act;
(xvi) fails to keep, maintain or retain books of
account and other documents in accordance with
the provisions of this Act or the rules made
thereunder;
(xvii)
fails
to
furnish
information
or
documents called for by an officer in accordance
with the provisions of this Act or the rules made
thereunder or furnishes false information or
documents during any proceedings under this Act;
680
LA GAZETTE DE L'ETAT
[PART–II
(xviii) supplies, transports or stores any
goods which he has reasons to believe are liable
to confiscation under this Act;
(xix) issues any invoice or document by using
the registration number of another registered
person;
(xx) tampers with, or destroys any material
evidence or documents;
(xxi) disposes off or tampers with any goods
that have been detained, seized, or attached under
this Act,
he shall be liable to pay a penalty of ten thousand
rupees or an amount equivalent to the tax evaded
or the tax not deducted under section 51 or short
deducted or deducted but not paid to the
Government or tax not collected under section
52 or short collected or collected but not paid
to the Government or input tax credit availed of
or passed on or distributed irregularly, or the
refund claimed fraudulently, whichever is higher.
(2) Any registered person who supplies any goods
or services or both on which any tax has not been paid
or short-paid or erroneously refunded, or where the
input tax credit has been wrongly availed or utilized,-
(a) for any reason, other than the reason of
fraud or any wilful misstatement or suppression
of facts to evade tax, shall be liable to a penalty
of ten thousand rupees or ten per cent. of the tax
due from such person, whichever is higher;
(b) for reason of fraud or any wilful
misstatement or suppression of facts to evade
tax, shall be liable to a penalty equal to ten
thousand rupees or the tax due from such person,
whichever is higher.
681
PART–II]
LA GAZETTE DE L'ETAT
(3) Any person who—
(a) aids or abets any of the offences specified
in clauses (i) to (xxi) of sub-section (1);
(b) acquires possession of, or in any way
concerns himself in transporting, removing,
depositing, keeping, concealing, supplying, or
purchasing or in any other manner deals with any
goods which he knows or has reasons to believe
are liable to confiscation under this Act or the
rules made thereunder;
(c) receives or is in any way concerned with
the supply of, or in any other manner deals with
any supply of services which he knows or has
reasons to believe are in contravention of any
provisions of this Act or the rules made
thereunder;
(d) fails to appear before the officer of State
tax, when issued with a summon for appearance
to give evidence or produce a document in an
inquiry;
(e) fails to issue invoice in accordance with
the provisions of this Act or the rules made
thereunder or fails to account for an invoice in
his books of account,
shall be liable to a penalty which may extend to twenty
five thousand rupees.
123. If a person who is required to furnish an
information return under section 150 fails to do so
within the period specified in the notice issued under
sub-section (3) thereof, the proper officer may direct,
that such person shall be liable to pay a penalty of one
hundred rupees for each day of the period during which
the failure to furnish such return continues:
Provided that the penalty imposed under this
section shall not exceed five thousand rupees.
Penalty for
failure to
furnish
information
return.
682
LA GAZETTE DE L'ETAT
[PART–II
124. If any person required to furnish any
information or return under section 151,—
(a) without reasonable cause fails to furnish
such information or return as may be required
under that section, or
(b) wilfully furnishes or causes to furnish any
information or return which he knows to be false,
he shall be punishable with a fine which may extend
to ten thousand rupees and in case of a continuing
offence to a further fine which may extend to one
hundred rupees for each day after the first day during
which the offence continues subject to a maximum
limit of twenty five thousand rupees.
125. Any person, who contravenes any of the
provisions of this Act or any rules made thereunder for
which no penalty is separately provided for in this Act,
shall be liable to a penalty which may extend to twenty
five thousand rupees.
126. (1) No officer under this Act shall impose
any penalty for minor breaches of tax regulations or
procedural requirements and in particular, any
omission or mistake in documentation which is easily
rectifiable and made without fraudulent intent or gross
negligence.
Explanation.—For the purpose of this sub-
section,—
(a) a breach shall be considered a 'minor breach'
if the amount of tax involved is less than five
thousand rupees;
(b) an omission or mistake in documentation
shall be considered to be easily rectifiable if the
same is an error apparent on the face of record.
(2) The penalty imposed under this Act shall
depend on the facts and circumstances of each case and
shall commensurate with the degree and severity of the
breach.
Fine for
failure to
furnish
statistics.
General
penalty.
General
disciplines
related to
penalty.
683
PART–II]
LA GAZETTE DE L'ETAT
(3) No penalty shall be imposed on any person
without giving him an opportunity of being heard.
(4) The officer under this Act shall while
imposing penalty in an order for a breach of any law,
regulation or procedural requirement, specify the
nature of the breach and the applicable law, regulation
or procedure under which the amount of penalty for
the breach has been specified.
(5) When a person voluntarily discloses to an
officer under this Act the circumstances of a breach
of the tax law, regulation or procedural requirement
prior to the discovery of the breach by the officer
under this Act, the proper officer may consider this
fact as a mitigating factor when quantifying a penalty
for that person.
(6) The provisions of this section shall not
apply in such cases where the penalty specified
under this Act is either a fixed sum or expressed as
a fixed percentage.
127. Where the proper officer is of the view
that a person is liable to a penalty and the same is
not covered under any proceedings under section 62
or section 63 or section 64 or section 73 or section
74 or section 129 or section 130, he may issue an
order levying such penalty after giving a reasonable
opportunity of being heard to such person.
128. The Government may, by notification,
waive in part or full, any penalty referred to in
section 122 or section 123 or section 125 or any
late fee referred to in section 47 for such class of
taxpayers and under such mitigating circumstances
as may be specified therein on the recommendations
of the Council.
129. (1) Notwithstanding anything contained in
this Act, where any person transports any goods or
stores any goods while they are in transit in
contravention of the provisions of this Act or the rules
made thereunder, all such goods and conveyance used
as a means of transport for carrying the said goods and
Power to
impose
penalty in
certain
cases.
Power to
waive
penalty or
fee or both.
Detention
seizure and
release of
goods and
conveyances
in transit.
684
LA GAZETTE DE L'ETAT
[PART–II
documents relating to such goods and conveyance shall
be liable to detention or seizure and after detention or
seizure, shall be released,—
(a) on payment of the applicable tax and
penalty equal to one hundred per cent. of the tax
payable on such goods and, in case of exempted
goods, on payment of an amount equal to two per
cent of the value of goods or twenty five
thousand rupees, whichever is less, where the
owner of the goods comes forward for payment
of such tax and penalty;
(b) on payment of the applicable tax and
penalty equal to the fifty per cent. of the value
of the goods reduced by the tax amount paid
thereon and, in case of exempted goods, on
payment of an amount equal to five per cent of
the value of goods or twenty five thousand
rupees, whichever is less, where the owner of the
goods does not come forward for payment of
such tax and penalty;
(c) upon furnishing a security equivalent to the
amount payable under clause (a) or clause (b)in
such form and manner as may be prescribed:
Provided that no such goods or conveyance
shall be detained or seized without serving an
order of detention or seizure on the person
transporting the goods.
(2) The provisions of sub-section (6) of section
67 shall, mutatis mutandis, apply for detention and
seizure of goods and conveyances.
(3) The proper officer detaining or seizing goods
or conveyances shall issue a notice specifying the tax
and penalty payable and thereafter, pass an order for
payment of tax and penalty under clause (a) or clause
(b) or clause (c).
685
PART–II]
LA GAZETTE DE L'ETAT
(4) No tax, interest or penalty shall be
determined under sub-section (3) without giving the
person concerned an opportunity of being heard.
(5) On payment of amount referred in sub-section (1),
all proceedings in respect of the notice specified in
sub-section (3) shall be deemed to be concluded.
(6) Where the person transporting any goods or
the owner of the goods fails to pay the amount of tax
and penalty as provided in sub-section (1) within seven
days of such detention or seizure, further proceedings
shall be initiated in accordance with the provisions of
section 130:
Provided that where the detained or seized goods
are perishable or hazardous in nature or are likely to
depreciate in value with passage of time, the said
period of seven days may be reduced by the proper
officer.
130. (1) Notwithstanding anything contained in
this Act, if any person—
(i) supplies or receives any goods in
contravention of any of the provisions of this
Act or the rules made thereunder with intent
to evade payment of tax; or
(ii) does not account for any goods on
which he is liable to pay tax under this Act; or
(iii) supplies any goods liable to tax under
this Act without having applied for registration; or
(iv) contravenes any of the provisions of
this Act or the rules made thereunder with
intent to evade payment of tax; or
(v) uses any conveyance as a means of
transport
for
carriage
of
goods
in
contravention of the provisions of this Act or
the rules made thereunder unless the owner of
Confiscation
of goods or
conveyances
and levy of
penalty.
686
LA GAZETTE DE L'ETAT
[PART–II
the conveyance proves that it was so used
without the knowledge or connivance of the
owner himself, his agent, if any, and the person
in charge of the conveyance,
then, all such goods or conveyances shall be liable to
confiscation and the person shall be liable to penalty
under section 122.
(2) Whenever confiscation of any goods or
conveyance is authorised by this Act, the officer
adjudging it shall give to the owner of the goods an
option to pay in lieu of confiscation, such fine as the
said officer thinks fit:
Provided that such fine leviable shall not exceed
the market value of the goods confiscated, less the tax
chargeable thereon:
Provided further that the aggregate of such fine
and penalty leviable shall not be less than the amount
of penalty leviable under sub-section (1) of section 129:
Provided also that where any such conveyance
is used for the carriage of the goods or passengers for
hire, the owner of the conveyance shall be given an
option to pay in lieu of the confiscation of the
conveyance a fine equal to the tax payable on the
goods being transported thereon.
(3) Where any fine in lieu of confiscation of
goods or conveyance is imposed under sub-section (2),
the owner of such goods or conveyance or the person
referred to in sub-section (1), shall, in addition, be
liable to any tax, penalty and charges payable in respect
of such goods or conveyance.
(4) No order for confiscation of goods or
conveyance or for imposition of penalty shall be issued
without giving the person an opportunity of being
heard.
(5) Where any goods or conveyance are
confiscated under this Act, the title of such goods or
conveyance shall thereupon vest in the Government.
687
PART–II]
LA GAZETTE DE L'ETAT
(6) The proper officer adjudging confiscation
shall take and hold possession of the things
confiscated and every officer of Police, on the
requisition of such proper officer, shall assist him in
taking and holding such possession.
(7) The proper officer may, after satisfying
himself that the confiscated goods or conveyance are
not required in any other proceedings under this Act
and after giving reasonable time not exceeding three
months to pay fine in lieu of confiscation, dispose of
such goods or conveyance and deposit the sale
proceeds thereof with the Government.
131. Without prejudice to the provisions
contained in the Code of Criminal Procedure, 1973,
no confiscation made or penalty imposed under the
provisions of this Act or the rules made thereunder
shall prevent the infliction of any other punishment to
which the person affected thereby is liable under the
provisions of this Act or under any other law for the
time being in force.
132. (1) Whoever commits any of the following
offences, namely:-
(a) supplies any goods or services or both
without issue of any invoice, in violation of the
provisions of this Act or the rules made
thereunder, with the intention to evade tax;
(b) issues any invoice or bill without supply
of goods or services or both in violation of the
provisions of this Act, or the rules made
thereunder leading to wrongful availment or
utilisation of input tax credit or refund of tax;
(c) avails input tax credit using such invoice
or bill referred to in clause (b);
Central
Act 2
of 1974.
Confiscation
or penalty
not to
interfere
with other
punishments.
Punishment
for certain
offences.
688
LA GAZETTE DE L'ETAT
[PART–II
(d) collects any amount as tax but fails to pay
the same to the Government beyond a period of
three months from the date on which such payment
becomes due;
(e) evades tax, fraudulently avails input tax
credit or fraudulently obtains refund and where
such offence is not covered under clauses (a) to (d);
(f) falsifies or substitutes financial records or
produces fake accounts or documents or furnishes
any false information with an intention to evade
payment of tax due under this Act;
(g) obstructs or prevents any officer in the
discharge of his duties under this Act;
(h) acquires possession of, or in any way
concerns himself in transporting, removing,
depositing, keeping, concealing, supplying,
purchasing or in any other manner deals with, any
goods which he knows or has reasons to believe
are liable to confiscation under this Act or the
rules made thereunder;
(i) receives or is in any way concerned with the
supply of, or in any other manner deals with any
supply of services which he knows or has reasons
to believe are in contravention of any provisions
of this Act or the rules made thereunder;
(j) tampers with or destroys any material
evidence or documents;
(k) fails to supply any information which he is
required to supply under this Act or the rules
made thereunder or (unless with a reasonable
belief, the burden of proving which shall be upon
him, that the information supplied by him is true)
supplies false information; or
(l) attempts
to
commit,
or
abets
the
commission of any of the offences mentioned in
clauses (a) to (k) of this section,
689
PART–II]
LA GAZETTE DE L'ETAT
shall be punishable—
(i) in cases where the amount of tax evaded
or the amount of input tax credit wrongly
availed or utilised or the amount of refund
wrongly taken exceeds five hundred lakh
rupees, with imprisonment for a term which may
extend to five years and with fine;
(ii) in cases where the amount of tax evaded
or the amount of input tax credit wrongly
availed or utilised or the amount of refund
wrongly taken exceeds two hundred lakh rupees
but does not exceed five hundred lakh rupees,
with imprisonment for a term which may extend
to three years and with fine;
(iii) in the case of any other offence where
the amount of tax evaded or the amount of input
tax credit wrongly availed or utilised or the
amount of refund wrongly taken exceeds one
hundred lakh rupees but does not exceed two
hundred lakh rupees, with imprisonment
for a term which may extend to one year and
with fine;
(iv) in cases where he commits or abets the
commission of an offence specified in clause
(f) or clause (g) or clause (j), he shall be
punishable with imprisonment for a term which
may extend to six months or with fine or with
both.
(2) Where any person convicted of an offence
under this section is again convicted of an offence
under this section, then, he shall be punishable for the
second and for every subsequent offence with
imprisonment for a term which may extend to five
years and with fine.
(3) The imprisonment referred to in clauses (i),
(ii) and (iii) of sub-section (1) and sub-section (2)
shall, in the absence of special and adequate reasons
to the contrary to be recorded in the judgment of the
Court, be for a term not less than six months.
690
LA GAZETTE DE L'ETAT
[PART–II
(4) Notwithstanding anything contained in the
Code of Criminal Procedure, 1973, all offences under this
Act, except the offences referred to in sub-section (5) shall
be non-cognizable and bailable.
(5) The offences specified in clause (a) or clause
(b) or clause (c) or clause (d) of sub-section (1) and
punishable under clause (i) of that sub-section shall be
cognizable and non-bailable.
(6) A person shall not be prosecuted for any
offence under this section except with the previous
sanction of the Commissioner.
Explanation.—For the purposes of this section,
the term "tax" shall include the amount of tax evaded
or the amount of input tax credit wrongly availed or
utilised or refund wrongly taken under the provisions
of this Act, the Central Goods and Services Tax Act,
the Integrated Goods and Services Tax Act, and cess
levied
under
the
Goods
and
Services
Tax
(Compensation to States) Act.
133.
(1) Where any person engaged in
connection with the collection of statistics under
section 151 or compilation or computerisation thereof
or if any officer of State tax having access to
information specified under sub-section (1) of section
150, or if any person engaged in connection with the
provision of service on the common portal or the agent
of common portal, wilfully discloses any information
or the contents of any return furnished under this Act
or rules made thereunder otherwise than in execution
of his duties under the said sections or for the
purposes of prosecution for an offence under this Act
or under any other Act for the time being in force, he
shall be punishable with imprisonment for a term which
may extend to six months or with fine which may
extend to twenty five thousand rupees, or with both.
Central
Act 2
of 1974.
Liability of
officers and
certain other
persons.
691
PART–II]
LA GAZETTE DE L'ETAT
(2) Any person—
(a) who is a Government servant shall not be
prosecuted for any offence under this section
except with the previous sanction of the
Government;
(b) who is not a Government servant shall not
be prosecuted for any offence under this section
except with the previous sanction of the
Commissioner.
134. No court shall take cognizance of any
offence punishable under this Act or the rules made
thereunder except with the previous sanction of the
Commissioner, and no court inferior to that of a
Magistrate of the First Class, shall try any such
offence.
135. In any prosecution for an offence under this
Act which requires a culpable mental state on the part
of the accused, the court shall presume the existence
of such mental state but it shall be a defence for the
accused to prove the fact that he had no such mental
state with respect to the act charged as an offence in
that prosecution.
Explanation.—For the purposes of this
section,—
(i) the expression "culpable mental state"
includes intention, motive, knowledge of a
fact, and belief in, or reason to believe, a fact;
(ii) a fact is said to be proved only when
the court believes it to exist beyond
reasonable doubt and not merely when its
existence is established by a preponderance of
probability.
136. A statement made and signed by a person on
appearance in response to any summons issued under
section 70 during the course of any inquiry or
Cognizance
of offences.
Presumption
of culpable
mental state.
Relevancy of
statements
under certain
circumstances.
692
LA GAZETTE DE L'ETAT
[PART–II
proceedings under this Act shall be relevant, for the
purpose of proving, in any prosecution for an offence
under this Act, the truth of the facts which it contains,-
(a) when the person who made the statement
is dead or cannot be found, or is incapable of
giving evidence, or is kept out of the way by the
adverse party, or whose presence cannot be
obtained without an amount of delay or expense
which, under the circumstances of the case, the
court considers unreasonable; or
(b) when the person who made the statement
is examined as a witness in the case before the
court and the court is of the opinion that, having
regard to the circumstances of the case, the
statement should be admitted in evidence in the
interest of justice.
137. (1) Where an offence committed by a
person under this Act is a company, every person who,
at the time the offence was committed was in charge
of, and was responsible to, the company for the
conduct of business of the company, as well as the
company, shall be deemed to be guilty of the offence
and shall be liable to be proceeded against and
punished accordingly.
(2) Notwithstanding anything contained in sub-
section (1), where an offence under this Act has been
committed by a company and it is proved that the
offence has been committed with the consent or
connivance of, or is attributable to any negligence on
the part of, any director, manager, secretary or other
officer of the company, such director, manager,
secretary or other officer shall also be deemed to be
guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
(3) Where an offence under this Act has been
committed by a taxable person being a partnership
firm or a Limited Liability Partnership or a Hindu
Undivided Family or a trust, the partner or karta or
Offences by
Companies.
693
PART–II]
LA GAZETTE DE L'ETAT
managing trustee shall be deemed to be guilty of that
offence and shall be liable to be proceeded against and
punished accordingly and the provisions of sub-section (2)
shall mutatis mutandis apply to such persons.
(4) Nothing contained in this section shall render
any such person liable to any punishment provided in
this Act, if he proves that the offence was committed
without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
Explanation.—For the purposes of this
section,—
(i) "company" means a body corporate and
includes a firm or other association of
individuals; and
(ii) "director", in relation to a firm, means
a partner in the firm.
138. (1) Any offence under this Act may, either
before or after the institution of prosecution, be
compounded by the Commissioner on payment, by the
person accused of the offence, to the Central
Government or the State Government, as the case may
be, of such compounding amount in such manner as may
be prescribed:
Provided that nothing contained in this section
shall apply to—
(a) a person who has been allowed to
compound once in respect of any of the offences
specified in clauses (a) to (f) of sub-section (1)
of section 132 and the offences specified in
clause (l) which are relatable to offences
specified in clauses (a) to (f) of the said sub-
section;
(b) a person who has been allowed to
compound once in respect of any offence, other
than those in clause (a), under this Act or under
the provisions of any State Goods and Services
Compounding
of offences.
694
LA GAZETTE DE L'ETAT
[PART–II
Tax Act or the Central Goods and Services Tax
Act or the Union Territory Goods and Services
Tax Act or the Integrated Goods and Services Tax
Act in respect of supplies of value exceeding one
crore rupees;
(c) a person who has been accused of
committing an offence under this Act which is
also an offence under any other law for the time
being in force;
(d) a person who has been convicted for an
offence under this Act by a court;
(e) a person who has been accused of
committing an offence specified in clause (g) or
clause (j) or clause(k) of sub-section (1) of
section 132; and
(f) any other class of persons or offences as
may be prescribed:
Provided further that any compounding allowed
under the provisions of this section shall not affect the
proceedings, if any, instituted under any other law:
Provided also that compounding shall be allowed
only after making payment of tax, interest and penalty
involved in such offences.
(2) The amount for compounding of offences
under this section shall be such as may be prescribed,
subject to the minimum amount not being less than ten
thousand rupees or fifty per cent. of the tax involved,
whichever is higher, and the maximum amount not
being less than thirty thousand rupees or one hundred
and fifty per cent. of the tax, whichever is higher.
(3) On payment of such compounding amount as
may be determined by the Commissioner, no further
proceedings shall be initiated under this Act against the
accused person in respect of the same offence and any
criminal proceedings, if already initiated in respect of
the said offence, shall stand abated.
695
PART–II]
LA GAZETTE DE L'ETAT
CHAPTER XX
T RANSITIONAL P ROVISIONS
139. (1) On and from the appointed day, every
person registered under any of the existing laws and
having a valid Permanent Account Number shall be
issued a certificate of registration on provisional basis,
subject to such conditions and in such form and manner
as may be prescribed, which unless replaced by a final
certificate of registration under sub-section (2), shall
be liable to be cancelled if the conditions so
prescribed are not complied with.
(2) The final certificate of registration shall be
granted in such form and manner and subject to such
conditions as may be prescribed.
(3) The certificate of registration issued to a
person under sub-section (1) shall be deemed to have
not been issued if the said registration is cancelled in
pursuance of an application filed by such person that
he was not liable to registration under section 22 or
section 24.
140. (1) A registered person, other than a person
opting to pay tax under section 10, shall be entitled
to take, in his electronic credit ledger, credit of the
amount of Value Added Tax, if any, carried forward in
the return relating to the period ending with the day
immediately preceding the appointed day, furnished by
him under the existing law in such manner as may be
prescribed:
Provided that the registered person shall not be
allowed to take credit in the following circumstances,
namely:—
(i) where the said amount of credit is not
admissible as input tax credit under this Act;
or
Migration of
existing
taxpayers.
Transitional
arrangements
for input tax
credit.
696
LA GAZETTE DE L'ETAT
[PART–II
(ii) where he has not furnished all the
returns required under the existing law for the
period of six months immediately preceding
the appointed date:
Provided further that so much of the said credit
as is attributable to any claim related to section 3,
sub-section (3) of section 5, section 6, section 6A or
sub-section (8) of section 8 of the Central Sales Tax
Act, 1956 which is not substantiated in the manner, and
within the period, prescribed in rule 12 of the Central
Sales Tax (Registration and Turnover) Rules, 1957
shall not be eligible to be credited to the electronic
credit ledger:
Provided also that an amount equivalent to the
credit specified in the second proviso shall be
refunded under the existing law when the said claims
are substantiated in the manner prescribed in rule 12
of the Central Sales Tax (Registration and Turnover)
Rules, 1957.
(2) A registered person, other than a person
opting to pay tax under section 10, shall be entitled
to take, in his electronic credit ledger, credit of the
unavailed input tax credit in respect of capital goods,
not carried forward in a return, furnished under the
existing law by him, for the period ending with the day
immediately preceding the appointed day in such
manner as may be prescribed:
Provided that the registered person shall not be
allowed to take credit unless the said credit was
admissible as input tax credit under the existing law
and is also admissible as input tax credit under this Act.
Explanation.—For the purposes of this section,
the expression "unavailed input tax credit" means the
amount that remains after subtracting the amount of
input tax credit already availed in respect of capital
goods by the taxable person under the existing law
from the aggregate amount of input tax credit to which
the said person was entitled in respect of the said
capital goods under the existing law.
Central
Act 74
of 1956.
697
PART–II]
LA GAZETTE DE L'ETAT
(3) A registered person, who was not liable to be
registered under the existing law or who was engaged
in the sale of exempted goods or tax free goods, by
whatever name called, under the existing law but which
are liable to tax under this Act or where the person was
entitled to the credit of input tax at the time of sale
of goods, if any, shall be entitled to take, in his
electronic credit ledger, credit of the value added tax
in respect of inputs held in stock and inputs contained
in semi-finished or finished goods held in stock on the
appointed day subject to the following conditions
namely:—
(i) such inputs or goods are used or
intended to be used for making taxable
supplies under this Act;
(ii) the said registered person is eligible for
input tax credit on such inputs under this Act;
(iii) the said registered person is in
possession of invoice or other prescribed
documents evidencing payment of tax under
the existing law in respect of such inputs; and
(iv) such invoices or other prescribed
documents were issued not earlier than twelve
months immediately preceding the appointed
day:
Provided that where a registered person, other
than a manufacturer or a supplier of services, is not
in possession of an invoice or any other documents
evidencing payment of tax in respect of inputs, then,
such registered person shall, subject to such
conditions, limitations and safeguards as may be
prescribed, including that the said taxable person shall
pass on the benefit of such credit by way of reduced
prices to the recipient, be allowed to take credit at such
rate and in such manner as may be prescribed.
698
LA GAZETTE DE L'ETAT
[PART–II
(4) A registered person, who was engaged in the
sale of taxable goods as well as exempted goods or tax
free goods, by whatever name called, under the existing
law but which are liable to tax under this Act, shall be
entitled to take, in his electronic credit ledger,-
(a) the amount of credit of the value added tax,
if any, carried forward in a return furnished under
the existing law by him in accordance with the
provisions of sub-section (1); and
(b) the amount of credit of the value added tax,
if any, in respect of inputs held in stock and
inputs contained in semi-finished or finished
goods held in stock on the appointed day, relating
to such exempted goods or tax free goods, by
whatever name called, in accordance with the
provisions of sub-section (3).
(5) A registered person shall be entitled to take,
in his electronic credit ledger, credit of value added
tax, if any, in respect of inputs received on or after the
appointed day but the tax in respect of which has been
paid by the supplier under the existing law, subject to
the condition that the invoice or any other tax paying
document of the same was recorded in the books of
account of such person within a period of thirty days
from the appointed day:
Provided that the period of thirty days may, on
sufficient cause being shown, be extended by the
Commissioner for a further period not exceeding
thirty days:
Provided further that the said registered person
shall furnish a statement, in such manner as may be
prescribed, in respect of credit that has been taken
under this sub-section.
(6) A registered person, who was either paying
tax at a fixed rate or paying a fixed amount in lieu of
the tax payable under the existing law shall be entitled
to take, in his electronic credit ledger, credit of value
699
PART–II]
LA GAZETTE DE L'ETAT
added tax in respect of inputs held in stock and inputs
contained in semi-finished or finished goods held in
stock on the appointed day subject to the following
conditions, namely:—
(i) such inputs or goods are used or intended
to be used for making taxable supplies under
this Act;
(ii) the said registered person is not paying
tax under section 10;
(iii) the said registered person is eligible
for input tax credit on such inputs under this
Act;
(iv) the said registered person is in
possession of invoice or other prescribed
documents evidencing payment of tax under
the existing law in respect of inputs; and
(v) such invoices or other prescribed
documents were issued not earlier than twelve
months immediately preceding the appointed
day.
(7) The amount of credit under sub-sections (3),
(4) and (6) shall be calculated in such manner as may
be prescribed.
141. (1) Where any inputs received at a place of
business had been despatched as such or despatched
after being partially processed to a job-worker for
further processing, testing, repair, reconditioning or
any other purpose in accordance with the provisions
of existing law prior to the appointed day and such
inputs are returned to the said place on or after the
appointed day, no tax shall be payable if such inputs, after
completion of the job-work or otherwise, are returned
to the said place within six months from the appointed
day:
Transitional
provisions
relating to
job work.
700
LA GAZETTE DE L'ETAT
[PART–II
Provided that the period of six months may, on
sufficient cause being shown, be extended by the
Commissioner for a further period not exceeding two
months:
Provided further that if such inputs are not
returned within the period specified in this sub-
section, the input tax credit shall be liable to be
recovered in accordance with the provisions of clause
(a) of sub-section (8) of section 142.
(2) Where any semi-finished goods had been
despatched from the place of business to any other
premises for carrying out certain manufacturing
processes in accordance with the provisions of
existing law prior to the appointed day and such goods
(hereafter in this sub-section referred to as "the said
goods") are returned to the said place on or after the
appointed day, no tax shall be payable if the said goods,
after
undergoing
manufacturing
processes
or
otherwise, are returned to the said place within six
months from the appointed day:
Provided that the period of six months may, on
sufficient cause being shown, be extended by the
Commissioner for a further period not exceeding two
months:
Provided further that if the said goods are not
returned within a period specified in this sub-section,
the input tax credit shall be liable to be recovered in
accordance with the provisions of clause (a) of sub-
section (8) of section 142:
Provided also that the person despatching the
goods may, in accordance with the provisions of the
existing law, transfer the said goods to the premises
of any registered person for the purpose of supplying
there from on payment of tax in India or without
payment of tax for exports within the period specified
in this sub-section.
701
PART–II]
LA GAZETTE DE L'ETAT
(3) Where any goods had been despatched from
the place of business without payment of tax for
carrying out tests or any other process, to any other
premises, whether registered or not, in accordance
with the provisions of existing law prior to the
appointed day and such goods, are returned to the said
place of business on or after the appointed day, no tax
shall be payable if the said goods, after undergoing
tests or any other process, are returned to such place
within six months from the appointed day:
Provided that the period of six months may, on
sufficient cause being shown, be extended by the
Commissioner for a further period not exceeding two
months:
Provided further that if the said goods are not
returned within the period specified in this sub-
section, the input tax credit shall be liable to be
recovered in accordance with the provisions of clause
(a) of sub-section (8) of section 142:
Provided also that the person despatching the
goods may, in accordance with the provisions of the
existing law, transfer the said goods from the said
other premises on payment of tax in India or without
payment of tax for exports within the period specified
in this sub-section.
(4) The tax under sub-sections (1), (2) and (3)
shall not be payable, only if the person despatching the
goods and the job-worker declare the details of the
inputs or goods held in stock by the job-worker on
behalf of the said person on the appointed day in such
form and manner and within such time as may be
prescribed.
142. (1) Where any goods on which tax, if any,
had been paid under the existing law at the time of sale
thereof, not being earlier than six months prior to the
appointed day, are returned to any place of business on
Miscellaneous
transitional
provisions.
702
LA GAZETTE DE L'ETAT
[PART–II
or after the appointed day, the registered person shall
be eligible for refund of the tax paid under the existing
law where such goods are returned by a person, other
than a registered person, to the said place of business
within a period of six months from the appointed day
and such goods are identifiable to the satisfaction of
the proper officer:
Provided that if the said goods are returned by a
registered person, the return of such goods shall be
deemed to be a supply.
(2) (a) where, in pursuance of a contract
entered into prior to the appointed day, the price
of any goods is revised upwards on or after the
appointed day, the registered person who had sold
such goods shall issue to the recipient a
supplementary invoice or debit note, containing
such particulars as may be prescribed, within
thirty days of such price revision and for the
purposes of this Act, such supplementary invoice
or debit note shall be deemed to have been
issued in respect of an outward supply made
under this Act;
(b) where, in pursuance of a contract entered
into prior to the appointed day, the price of any
goods is revised downwards on or after the
appointed day, the registered person who had sold
such goods may issue to the recipient a credit
note, containing such particulars as may be
prescribed, within thirty days of such price
revision and for the purposes of this Act such
credit note shall be deemed to have been issued
in respect of an outward supply made under this
Act:
Provided that the registered person shall be
allowed to reduce his tax liability on account of issue
of the credit note only if the recipient of the credit
note has reduced his input tax credit corresponding to
such reduction of tax liability.
703
PART–II]
LA GAZETTE DE L'ETAT
(3) Every claim for refund filed by any person
before, on or after the appointed day for refund of any
amount of input tax credit, tax, interest or any other
amount paid under the existing law, shall be disposed
of in accordance with the provisions of existing law
and any amount eventually accruing to him shall be
refunded to him in cash in accordance with the
provisions of the said law:
Provided that where any claim for refund of the
amount of input tax credit is fully or partially rejected,
the amount so rejected shall lapse:
Provided further that no refund shall be allowed
of any amount of input tax credit where the balance of
the said amount as on the appointed day has been
carried forward under this Act.
(4) Every claim for refund filed after the
appointed day for refund of any tax paid under the
existing law in respect of the goods exported before
or after the appointed day, shall be disposed of in
accordance with the provisions of the existing law:
Provided that where any claim for refund of input
tax credit is fully or partially rejected, the amount so
rejected shall lapse:
Provided further that no refund shall be allowed
of any amount of input tax credit where the balance of
the said amount as on the appointed day has been
carried forward under this Act.
(5) Notwithstanding anything to the contrary
contained in this Act, any amount of input tax credit
reversed prior to the appointed day shall not be
admissible as input tax credit under this Act.
(6) (a) every proceeding of appeal, revision,
review or reference relating to a claim for input tax
credit initiated whether before, on or after the
appointed day under the existing law shall be disposed
704
LA GAZETTE DE L'ETAT
[PART–II
of in accordance with the provisions of the existing
law, and any amount of credit found to be admissible
to the claimant shall be refunded to him in cash in
accordance with the provisions of the existing law, and
the amount rejected, if any, shall not be admissible as
input tax credit under this Act:
Provided that no refund shall be allowed of any
amount of input tax credit where the balance of the
said amount as on the appointed day has been carried
forward under this Act;
(b) every proceeding of appeal, revision, review
or reference relating to recovery of input tax credit
initiated whether before, on or after the appointed day
under the existing law shall be disposed of in
accordance with the provisions of the existing law, and
if any amount of credit becomes recoverable as a result
of such appeal, revision, review or reference, the same
shall, unless recovered under the existing law, be
recovered as an arrear of tax under this Act and the
amount so recovered shall not be admissible as input
tax credit under this Act.
(7) (a) every proceeding of appeal, revision,
review or reference relating to any output tax liability
initiated whether before, on or after the appointed day
under the existing law, shall be disposed of in
accordance with the provisions of the existing law, and
if any amount becomes recoverable as a result of such
appeal, revision, review or reference, the same shall,
unless recovered under the existing law, be recovered
as an arrear of tax under this Act and the amount so
recovered shall not be admissible as input tax credit
under this Act.
(b) every proceeding of appeal, revision, review
or reference relating to any output tax liability
initiated whether before, on or after the appointed day
under the existing law, shall be disposed of in
accordance with the provisions of the existing law, and
705
PART–II]
LA GAZETTE DE L'ETAT
any amount found to be admissible to the claimant
shall be refunded to him in cash in accordance with the
provisions of the existing law and the amount rejected,
if any, shall not be admissible as input tax credit under
this Act.
(8) (a) where in pursuance of an assessment or
adjudication proceedings instituted, whether before,
on or after the appointed day under the existing law,
any amount of tax, interest, fine or penalty becomes
recoverable from the person, the same shall, unless
recovered under the existing law, be recovered as an
arrear of tax under this Act and the amount so
recovered shall not be admissible as input tax credit
under this Act;
(b) where in pursuance of an assessment or
adjudication proceedings instituted, whether before,
on or after the appointed day under the existing law,
any amount of tax, interest, fine or penalty becomes
refundable to the taxable person, the same shall be
refunded to him in cash under the said law, and the
amount rejected, if any, shall not be admissible as
input tax credit under this Act.
(9) (a) where any return, furnished under the
existing law, is revised after the appointed day and if,
pursuant to such revision, any amount is found to be
recoverable or any amount of input tax credit is found
to be inadmissible, the same shall, unless recovered
under the existing law, be recovered as an arrear of tax
under this Act and the amount so recovered shall not
be admissible as input tax credit under this Act;
(b) where any return, furnished under the existing
law, is revised after the appointed day but within the
time limit specified for such revision under the
existing law and if, pursuant to such revision, any
amount is found to be refundable or input tax credit
is found to be admissible to any taxable person, the
same shall be refunded to him in cash under the
existing law, and the amount rejected, if any, shall not
be admissible as input tax credit under this Act.
706
LA GAZETTE DE L'ETAT
[PART–II
(10) Save as otherwise provided in this Chapter,
the goods or services or both supplied on or after the
appointed day in pursuance of a contract entered into
prior to the appointed day shall be liable to tax under
the provisions of this Act.
(11) (a) notwithstanding anything contained in
section 12, no tax shall be payable on goods under this
Act to the extent the tax was leviable on the said goods
under the Puducherry Value Added Tax Act, 2007;
(b) notwithstanding anything contained in section 13,
no tax shall be payable on services under this Act to
the extent the tax was leviable on the said services under
Chapter V of the Finance Act, 1994;
(c) where tax was paid on any supply, both under
the Puducherry Value Added Tax Act, 2007 and under
Chapter V of the Finance Act, 1994, tax shall be
leviable under this Act and the taxable person shall be
entitled to take credit of value added tax or service tax
paid under the existing law to the extent of supplies
made after the appointed day and such credit shall be
calculated in such manner as may be prescribed.
(12) Where any goods sent on approval basis, not
earlier than six months before the appointed day, are
rejected or not approved by the buyer and returned to
the seller on or after the appointed day, no tax shall
be payable thereon if such goods are returned within
six months from the appointed day:
Provided that the said period of six months may,
on sufficient cause being shown, be extended by the
Commissioner for a further period not exceeding two
months:
Provided further that the tax shall be payable by
the person returning the goods if such goods are liable
to tax under this Act, and are returned after the period
specified in this sub-section:
Act
No. 9
of 2007.
Central
Act 32
of 1994.
Act
No. 9
of 2007.
Central
Act 32
of 1994.
707
PART–II]
LA GAZETTE DE L'ETAT
Provided also that tax shall be payable by the
person who has sent the goods on approval basis if
such goods are liable to tax under this Act, and are not
returned within the period specified in this sub-
section.
(13) Where a supplier has made any sale of
goods in respect of which tax was required to be
deducted at source under the Puducherry Value Added
Tax Act, 2007 and has also issued an invoice for the
same before the appointed day, no deduction of tax at
source under section 51 shall be made by the deductor
under the said section where payment to the said
supplier is made on or after the appointed day.
(14) Where any goods or capital goods belonging
to the principal are lying at the premises of the agent
on the appointed day, the agent shall be entitled to take
credit of the tax paid on such goods or capital goods
subject to fulfilment of the following conditions:
(i) the agent is a registered taxable person
under this Act;
(ii) both the principal and the agent declare
the details of stock of goods or capital goods
lying with such agent on the day immediately
preceding the appointed day in such form and
manner and within such time as may be
prescribed in this behalf;
(iii) the invoices for such goods or capital
goods had been issued not earlier than twelve
months immediately preceding the appointed
day; and
(iv) the principal has either reversed or not
availed of the input tax credit in respect of
such,-
(a) goods; or
(b) capital goods or, having availed of
such credit, has reversed the said credit, to
the extent availed of by him.
Act
No. 9 of
2007.
708
LA GAZETTE DE L'ETAT
[PART–II
Explanation.— For the purposes of this
Chapter, the expression "capital goods" shall have
the same meaning as assigned to it in the
Puducherry Value Added Tax Act, 2007.
CHAPTER XXI
MISCELLANEOUS
143. (1) A registered person (hereafter in this
section referred to as the "principal") may, under
intimation and subject to such conditions as may be
prescribed, send any inputs or capital goods, without
payment of tax, to a job-worker for job-work and from
there subsequently send to another job-worker and
likewise, and shall,—
(a) bring back inputs, after completion of job-
work or otherwise, or capital goods, other than
moulds and dies, jigs and fixtures, or tools, within
one year and three years, respectively, of their
being sent out, to any of his place of business,
without payment of tax;
(b) supply such inputs, after completion of job-
work or otherwise, or capital goods, other than
moulds and dies, jigs and fixtures, or tools, within
one year and three years, respectively, of their
being sent out from the place of business of a job-
worker on payment of tax within India, or with or
without payment of tax for export, as the case may be:
Provided that the principal shall not supply the
goods from the place of business of a job-worker
in accordance with the provisions of this clause
unless the said principal declares the place of
business of the job-worker as his additional place
of business except in a case—
(i) where the job-worker is registered under
section 25; or
Job work
procedure.
Act
No. 9 of
2007.
709
PART–II]
LA GAZETTE DE L'ETAT
(ii) where the principal is engaged in the
supply of such goods as may be notified by the
Commissioner.
(2) The responsibility for keeping proper
accounts for the inputs or capital goods shall lie with
the principal.
(3) Where the inputs sent for job-work are not
received back by the principal after completion of job-
work or otherwise in accordance with the provisions
of clause (a) of sub-section (1) or are not supplied
from the place of business of the job-worker in
accordance with the provisions of clause (b) of
sub-section (1) within a period of one year of their
being sent out, it shall be deemed that such inputs had
been supplied by the principal to the job-worker on the
day when the said inputs were sent out.
(4) Where the capital goods, other than moulds
and dies, jigs and fixtures, or tools, sent for job-work
are not received back by the principal in accordance
with the provisions of clause (a) of sub-section (1) or
are not supplied from the place of business of the job-
worker in accordance with the provisions of clause (b)
of sub-section (1) within a period of three years of
their being sent out, it shall be deemed that such
capital goods had been supplied by the principal to the
job-worker on the day when the said capital goods were
sent out.
(5) Notwithstanding anything contained in sub-
sections (1) and (2), any waste and scrap generated
during the job-work may be supplied by the job-worker
directly from his place of business on payment of tax,
if such job-worker is registered, or by the principal,
if the job-worker is not registered.
Explanation.—For the purposes of job-work,
input includes intermediate goods arising from any
treatment or process carried out on the inputs by the
principal or the job-worker.
710
LA GAZETTE DE L'ETAT
[PART–II
144. Where any document-
(i) is produced by any person under this Act
or any other law for the time being in force;
or
(ii) has been seized from the custody or
control of any person under this Act or any
other law for the time being in force; or
(iii) has been received from any place
outside India in the course of any proceedings
under this Act or any other law for the time
being in force,
and such document is tendered by the prosecution in
evidence against him or any other person who is tried
jointly with him, the court shall—
(a) unless the contrary is proved by such
person, presume—
(i) the truth of the contents of such
document;
(ii) that the signature and every other part of
such document which purports to be in the
handwriting of any particular person or which
the court may reasonably assume to have been
signed by, or to be in the handwriting of, any
particular person, is in that person's handwriting,
and in the case of a document executed or
attested, that it was executed or attested by the
person by whom it purports to have been so
executed or attested;
(b)
admit
the
document
in
evidence
notwithstanding that it is not duly stamped, if
such document is otherwise admissible in
evidence.
Presumption
as to
documents in
certain cases.
711
PART–II]
LA GAZETTE DE L'ETAT
145. (1) Notwithstanding anything contained in
any other law for the time being in force,—
(a) a micro film of a document or the
reproduction of the image or images embodied
in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) a statement contained in a document and
included in a printed material produced by a
computer, subject to such conditions as may be
prescribed; or
(d) any information stored electronically in
any device or media, including any hard copies
made of such information,
shall be deemed to be a document for the purposes of
this Act and the rules made thereunder and shall be
admissible in any proceedings thereunder, without
further proof or production of the original, as
evidence of any contents of the original or of any fact
stated therein of which direct evidence would be
admissible.
(2) In any proceedings under this Act or the rules
made thereunder, where it is desired to give
a statement in evidence by virtue of this section, a
certificate,—
(a) identifying the document containing the
statement and describing the manner in which it
was produced;
(b) giving such particulars of any device
involved in the production of that document as
may be appropriate for the purpose of showing
that the document was produced by a computer,
Admissibility
of micro
films,
facsimile
copies of
documents
and
computer
printouts as
documents
and as
evidence.
712
LA GAZETTE DE L'ETAT
[PART–II
shall be evidence of any matter stated in the certificate
and for the purposes of this sub-section it shall be
sufficient for a matter to be stated to the best of the
knowledge and belief of the person stating it.
146. The
Government
may,
on
the
recommendations of the Council,
notify the
Common Goods and Services Tax Electronic Portal
for facilitating registration, payment of tax,
furnishing of returns, computation and settlement of
integrated tax, electronic way bill and for carrying out
such other functions and for such purposes as may be
prescribed.
147. The
Government
may,
on
the
recommendations of the Council, notify certain
supplies of goods as "deemed exports", where goods
supplied do not leave India, and payment for such
supplies is received either in Indian rupees or in
convertible foreign exchange, if such goods are
manufactured in India.
148.
The
Government
may,
on
the
recommendations of the Council, and subject to such
conditions and safeguards as may be prescribed, notify
certain classes of registered persons, and the special
procedures to be followed by such persons including
those with regard to registration, furnishing of return,
payment of tax and administration of such persons.
149. (1) Every registered person may be assigned
a goods and services tax compliance rating score by
the Government based on his record of compliance
with the provisions of this Act.
(2) The goods and services tax compliance rating
score may be determined on the basis of such
parameters as may be prescribed.
(3) The goods and services tax compliance
rating score may be updated at periodic intervals and
intimated to the registered person and also placed in
the public domain in such manner as may be
prescribed.
Common
Portal.
Special
procedure
for certain
processes.
Goods and
services tax
compliance
rating.
Deemed
Exports.
713
PART–II]
LA GAZETTE DE L'ETAT
150. (1) Any person, being—
(a) a taxable person; or
(b) a local authority or other public body or
association; or
(c) any authority of the State Government
responsible for the collection of value added tax
or sales tax or State excise duty or an authority
of the Central Government responsible for the
collection of excise duty or customs duty; or
(d) an income tax authority appointed under
the provisions of the Income-tax Act, 1961; or
(e) a banking company within the meaning of
clause (a) of section 45A of the Reserve Bank of
India Act, 1934; or
(f) a State Electricity Board or an electricity
distribution or transmission licensee under the
Electricity Act, 2003, or any other entity
entrusted with such functions by the Central
Government or the State Government; or
(g) the Registrar or Sub-Registrar appointed
under section 6 of the Registration Act, 1908; or
(h) a Registrar within the meaning of the
Companies Act, 2013; or
(i) the registering authority empowered to
register motor vehicles under the Motor Vehicles
Act, 1988; or
(j) the Collector referred to in clause (c) of
section 3 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013; or
Obligation to
furnish
information
return.
Central
Act 2
of 1934.
Central
Act 36
of 2003.
Central
Act 16
of 1908.
Central
Act 18
of 2013.
Central
Act 59
of 1988.
Central
Act 30
of 2013.
Central
Act 43
of 1961.
714
LA GAZETTE DE L'ETAT
[PART–II
(k) the recognised stock exchange referred to
in clause (f) of section 2 of the Securities
Contracts (Regulation) Act, 1956; or
(l) a depository referred to in clause (e) of
sub-section (1) of section 2 of the Depositories
Act, 1996; or
(m) an officer of the Reserve Bank of India as
constituted under section 3 of the Reserve Bank
of India Act, 1934; or
(n) the Goods and Services Tax Network, a company
registered under the Companies Act, 2013; or
(o) a person to whom a Unique Identity
Number has been granted under sub-section (9)
of section 25; or
(p) any other person as may be specified, on
the recommendations of the Council, by the
Government,
who is responsible for maintaining record of
registration or statement of accounts or any periodic
return or document containing details of payment of
tax and other details of transaction of goods or
services or both or transactions related to a bank
account or consumption of electricity or transaction
of purchase, sale or exchange of goods or property or
right or interest in a property under any law for the
time being in force, shall furnish an information return
of the same in respect of such periods, within such
time, in such form and manner and to such authority
or agency as may be prescribed.
(2) Where the Commissioner, or an officer
authorised by him in this behalf, considers that the
information furnished in the information return is
defective, he may intimate the defect to the person
Central
Act 42
of 1956.
Central
Act 22
of 1996.
Central
Act 2
of 1934.
Central
Act 18
of 2013.
715
PART–II]
LA GAZETTE DE L'ETAT
who has furnished such information return and give
him an opportunity of rectifying the defect within a
period of thirty days from the date of such intimation
or within such further period which, on an application
made in this behalf, the said authority may allow and
if the defect is not rectified within the said period of
thirty days or, the further period so allowed, then,
notwithstanding anything contained in any other
provisions of this Act, such information return shall
be treated as not furnished and the provisions of this
Act shall apply.
(3) Where a person who is required to furnish
information return has not furnished the same within
the time specified in sub-section (1) or sub-section (2),
the said authority may serve upon him a notice
requiring furnishing of such information return within
a period not exceeding ninety days from the date of
service of the notice and such person shall furnish the
information return.
151. (1) The Commissioner may, if he considers
that it is necessary so to do, by notification, direct that
statistics may be collected relating to any matter dealt
with by or in connection with this Act.
(2) Upon such notification being issued, the
Commissioner, or any person authorised by him in this
behalf, may call upon the concerned persons to furnish
such information or returns, in such form and manner
as may be prescribed, relating to any matter in respect
of which statistics is to be collected.
152. (1) No information of any individual return
or part thereof with respect to any matter given for the
purposes of section 150 or section 151 shall, without
the previous consent in writing of the concerned
person or his authorised representative, be published
in such manner so as to enable such particulars to be
identified as referring to a particular person and no such
information shall be used for the purpose of any
proceedings under this Act.
Power to
collect
statistics.
Bar on
disclosure of
information.
716
LA GAZETTE DE L'ETAT
[PART–II
(2) Except for the purposes of prosecution under
this Act or any other Act for the time being in force,
no person who is not engaged in the collection of
statistics
under
this
Act
or
compilation
or
computerisation thereof for the purposes of this Act,
shall be permitted to see or have access to any
information or any individual return referred to in
section 151.
(3) Nothing in this section shall apply to the
publication of any information relating to a class of
taxable persons or class of transactions, if in the
opinion of the Commissioner, it is desirable in the
public interest to publish such information.
153. Any officer not below the rank of Assistant
Commissioner may, having regard to the nature and
complexity of the case and the interest of revenue,
take assistance of any expert at any stage of scrutiny,
inquiry, investigation or any other proceedings before
him.
154. The Commissioner or an officer authorised
by him may take samples of goods from the
possession of any taxable person, where he considers
it necessary, and provide a receipt for any samples so
taken.
155. Where any person claims that he is eligible
for input tax credit under this Act, the burden of
proving such claim shall lie on such person.
156. All persons discharging functions under this
Act shall be deemed to be public servants within the
meaning of section 21 of the Indian Penal Code.
157. (1) No suit, prosecution or other legal
proceedings shall lie against the President, State
President, Members, officers or other employees of the
Appellate Tribunal or any other person authorised by
the said Appellate Tribunal for anything which is in
good faith done or intended to be done under this Act
or the rules made thereunder.
Taking
assistance
from an
expert.
Power to
take
samples.
Burden of
proof.
Persons
deemed to be
public
servants.
Protection of
action taken
under this
Act.
Central
Act 45
of 1860.
717
PART–II]
LA GAZETTE DE L'ETAT
(2) No suit, prosecution or other legal proceedings
shall lie against any officer appointed or authorised
under this Act for anything which is done or intended
to be done in good faith under this Act or the rules made
thereunder.
158. (1) All particulars contained in any statement
made, return furnished or accounts or documents
produced in accordance with this Act, or in any record
of evidence given in the course of any proceedings
under this Act (other than proceedings before a criminal
court), or in any record of any proceedings under this
Act shall, save as provided in sub-section (3), not be
disclosed.
(2) Notwithstanding anything contained in the
Indian Evidence Act, 1872, no court shall, save as
otherwise provided in sub-section (3), require any
officer appointed or authorised under this Act to
produce before it or to give evidence before it in
respect of particulars referred to in sub-section (1).
(3) Nothing contained in this section shall apply
to the disclosure of,—
(a) any particulars in respect of any statement,
return, accounts, documents, evidence, affidavit
or deposition, for the purpose of any prosecution
under the Indian Penal Code or the Prevention of
Corruption Act, 1988, or any other law for the
time being in force; or
(b) any particulars to the Central Government
or the State Government or to any person acting
in the implementation of this Act, for the
purposes of carrying out the objects of this Act;
or
Disclosure
of
information
by a public
servant.
.
Central
Act 45
of 1860.
Central
Act 49
of 1988.
Central
Act 1
of 1872.
718
LA GAZETTE DE L'ETAT
[PART–II
(c) any particulars when such disclosure is
occasioned by the lawful exercise under this Act
of any process for the service of any notice or
recovery of any demand; or
(d) any particulars to a civil court in any suit
or proceedings, to which the Government or any
authority under this Act is a party, which relates
to any matter arising out of any proceedings under
this Act or under any other law for the time being
in force authorising any such authority to exercise
any powers thereunder; or
(e) any particulars to any officer appointed for
the purpose of audit of tax receipts or refunds of
the tax imposed by this Act; or
(f) any particulars where such particulars are
relevant for the purposes of any inquiry into the
conduct of any officer appointed or authorised
under this Act, to any person or persons
appointed as an inquiry officer under any law for
the time being in force; or
(g) any such particulars to an officer of the
Central Government or of any State Government,
as may be necessary for the purpose of enabling
that Government to levy or realise any tax or
duty; or
(h) any particulars when such disclosure is
occasioned by the lawful exercise by a public
servant or any other statutory authority, of his or
its powers under any law for the time being in
force; or
(i) any particulars relevant to any inquiry into
a charge of misconduct in connection with any
proceedings under this Act against a practising
advocate, a tax practitioner, a practising cost
accountant, a practising chartered accountant, a
practising company secretary to the authority
719
PART–II]
LA GAZETTE DE L'ETAT
empowered to take disciplinary action against the
members practising the profession of a legal
practitioner, a cost accountant, a chartered
accountant or a company secretary, as the case
may be; or
(j) any particulars to any agency appointed for
the purposes of data entry on any automated
system or for the purpose of operating, upgrading
or maintaining any automated system where such
agency is contractually bound not to use or
disclose such particulars except for the aforesaid
purposes; or
(k) any such particulars to an officer of the
Government as may be necessary for the
purposes of any other law for the time being in
force; and
(l) any information relating to any class of
taxable persons or class of transactions for
publication,
if,
in
the
opinion
of
the
Commissioner, it is desirable in the public
interest, to publish such information.
159. (1) If the Commissioner, or any other
officer authorised by him in this behalf, is of the
opinion that it is necessary or expedient in the public
interest to publish the name of any person and any
other particulars relating to any proceedings or
prosecution under this Act in respect of such person,
it may cause to be published such name and particulars
in such manner as it thinks fit.
(2) No publication under this section shall be
made in relation to any penalty imposed under this Act
until the time for presenting an appeal to the Appellate
Authority under section 107 has expired without an
appeal having been presented or the appeal, if
presented, has been disposed of.
Explanation.—In the case of firm, company or
other association of persons, the names of the partners
of the firm, directors, managing agents, secretaries and
treasurers or managers of the company, or the members
Publication
of
information
in respect of
persons in
certain
cases.
720
LA GAZETTE DE L'ETAT
[PART–II
of the association, as the case may be, may also be
published if, in the opinion of the Commissioner, or any
other officer authorised by him in this behalf,
circumstances of the case justify it.
160.
(1)
No
assessment,
re-assessment,
adjudication, review, revision, appeal, rectification,
notice, summons or other proceedings done, accepted,
made, issued, initiated, or purported to have been done,
accepted, made, issued, initiated in pursuance of any of
the provisions of this Act shall be invalid or deemed to
be invalid merely by reason of any mistake, defect or
omission therein, if such assessment, re-assessment,
adjudication, review, revision, appeal, rectification,
notice, summons or other proceedings are in
substance and effect in conformity with or according
to the intents, purposes and requirements of this Act
or any existing law.
(2) The service of any notice, order or
communication shall not be called in question, if the
notice, order or communication, as the case may be,
has already been acted upon by the person to whom it
is issued or where such service has not been called in
question at or in the earlier proceedings commenced,
continued or finalised pursuant to such notice, order
or communication.
161. Without prejudice to the provisions of
section 160, and notwithstanding anything contained in
any other provisions of this Act, any authority, who has
passed or issued any decision or order or notice or
certificate or any other document, may rectify any
error which is apparent on the face of record in such
decision or order or notice or certificate or any other
document, either on its own motion or where such
error is brought to its notice by any officer appointed
under this Act or an officer appointed under the Central
Goods and Services Tax Act or by the affected person
within a period of three months from the date of issue
of such decision or order or notice or certificate or any
other document, as the case may be:
Assessment
proceedings,
etc., not to
be invalid on
certain
grounds.
Rectification
of errors
apparent on
the face of
record.
721
PART–II]
LA GAZETTE DE L'ETAT
Provided that no such rectification shall be done
after a period of six months from the date of issue of
such decision or order or notice or certificate or any
other document:
Provided further that the said period of six
months shall not apply in such cases where the
rectification is purely in the nature of correction of a
clerical or arithmetical error, arising from any
accidental slip or omission:
Provided also that where such rectification
adversely affects any person, the principles of natural
justice shall be followed by the authority carrying out
such rectification.
162. Save as provided in sections 117 and 118,
no civil court shall have jurisdiction to deal with or
decide any question arising from or relating to
anything done or purported to be done under this Act.
163. Wherever a copy of any order or document
is to be provided to any person on an application made
by him for that purpose, there shall be paid such fee
as may be prescribed.
164.
(1)
The
Government
may,
on
the
recommendations of the Council, by notification, make
rules for carrying out the provisions of this Act.
(2) Without prejudice to the generality of the
provisions of sub-section (1), the Government may
make rules for all or any of the matters which by this
Act are required to be, or may be, prescribed or in
respect of which provisions are to be or may be made
by rules.
(3) The power to make rules conferred by this
section shall include the power to give retrospective
effect to the rules or any of them from a date not earlier
than the date on which the provisions of this Act come
into force.
Bar on
jurisdiction
of civil
courts.
Levy of fee.
Power of
Government
to make
rules.
722
LA GAZETTE DE L'ETAT
[PART–II
(4) Any rules made under sub-section (1) or
sub-section (2) may provide that a contravention
thereof shall be liable to a penalty not exceeding ten
thousand rupees.
165. The Government may, by notification, make
regulations consistent with this Act and the rules made
thereunder to carry out the provisions of this Act.
166. Every rule made by the Government, every
regulation made by the Government and every
notification issued by the Government under this Act,
shall be laid, as soon as may be after it is made or
issued, before the State Legislature, while it is in
session, for a total period of thirty days which may be
comprised in one session or in two or more
successive sessions, and if, before the expiry of the
session immediately following the session or the
successive sessions aforesaid, the State Legislature
agrees in making any modification in the rule or
regulation or in the notification, as the case may be,
or the State Legislature agrees that the rule or
regulation or the notification should not be made, the
rule or regulation or notification, as the case may be,
shall thereafter have effect only in such modified form
or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be
without prejudice to the validity of anything previously
done under that rule or regulation or notification, as
the case may be.
167. The Commissioner may, by notification,
direct that subject to such conditions, if any, as may
be specified in the notification, any power exercisable
by any authority or officer under this Act may be
exercisable also by another authority or officer as may
be specified in such notification.
168. The Commissioner may, if he considers it
necessary or expedient so to do for the purpose of
uniformity in the implementation of this Act, issue such
orders, instructions or directions to the State tax
Power to
make
regulations.
Laying of
rules,
regulations
and
notifications.
Delegation
of powers.
Power to
issue
instructions
or directions.
723
PART–II]
LA GAZETTE DE L'ETAT
officers as it may deem fit, and thereupon all such
officers and all other persons employed in the
implementation of this Act shall observe and follow such
orders, instructions or directions.
169. (1) Any decision, order, summons, notice or
other communication under this Act or the rules made
thereunder shall be served by any one of the following
methods, namely:-
(a) by giving or tendering it directly or by a
messenger including a courier to the addressee
or the taxable person or to his manager or
authorised representative or an advocate or a tax
practitioner holding authority to appear in the
proceedings on behalf of the taxable person or
to a person regularly employed by him in
connection with the business, or to any adult
member of family residing with the taxable
person; or
(b) by registered post or speed post or courier
with acknowledgement due, to the person for
whom
it
is
intended
or
his
authorised
representative, if any, at his last known place of
business or residence; or
(c) by sending a communication to his e-mail
address provided at the time of registration or as
amended from time to time; or
(d) by making it available on the common
portal; or
(e) by publication in a newspaper circulating
in the locality in which the taxable person or the
person to whom it is issued is last known to have
resided, carried on business or personally worked
for gain; or
(f) if none of the modes aforesaid is
practicable, by affixing it in some conspicuous
place at his last known place of business or
residence and if such mode is not practicable for
Service of
notice in
certain
circumstances.
724
LA GAZETTE DE L'ETAT
[PART–II
any reason, then by affixing a copy thereof on the
notice board of the office of the concerned
officer or authority who or which passed such
decision or order or issued such summons or
notice.
(2) Every decision, order, summons, notice or
any communication shall be deemed to have been
served on the date on which it is tendered or published
or a copy thereof is affixed in the manner provided in
sub-section (1).
(3) When such decision, order, summons, notice
or any communication is sent by registered post or
speed post, it shall be deemed to have been received
by the addressee at the expiry of the period normally
taken by such post in transit unless the contrary is
proved.
170. The amount of tax, interest, penalty, fine or
any other sum payable, and the amount of refund or any
other sum due, under the provisions of this Act shall
be rounded off to the nearest rupee and, for this
purpose, where such amount contains a part of a rupee
consisting of paise, then, if such part is fifty paise or
more, it shall be increased to one rupee and if such
part is less than fifty paise it shall be ignored.
171. (1) Any reduction in rate of tax on any supply
of goods or services or the benefit of input tax credit
shall be passed on to the recipient by way of
commensurate reduction in prices.
(2)
The
Central
Government
may,
on
recommendations of the Council, by notification,
constitute an Authority, or empower an existing
Authority constituted under any law for the time being
in force, to examine 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.
Anti-
profiteering
measure.
Rounding off
of tax, etc.
725
PART–II]
LA GAZETTE DE L'ETAT
(3) The Authority referred to in sub-section (2)
shall exercise such powers and discharge such
functions as may be prescribed.
172. (1) If any difficulty arises in giving effect to
any provisions of this Act, the Government may, on the
recommendations of the Council, by a general or a
special order published in the Official Gazette, make
such provisions not inconsistent with the provisions
of this Act or the rules or regulations made
thereunder, as may be necessary or expedient for the
purpose of removing the said difficulty:
Provided that no such order shall be made after
the expiry of a period of three years from the date of
commencement of this Act.
(2) Every order made under this section shall be
laid, as soon as may be, after it is made, before the
State Legislature.
173. Save as otherwise provided in this Act, on
and from the date of commencement of this Act,-
(1) in the Puducherry Municipalities Act, 1973,-
(a) in section 118, in sub-section (1), in
clause (a), sub-clause (iii) shall be omitted;
(b) sections 152, 153, 154, 155, 156 and 157 shall
be omitted; and
(c) schedule-VII appended to the Act shall be
omitted.
(2) Save as otherwise provided in this Act,
on and from the date of commencement of this
Act, the provisions, under any State law,
authorizing levy and collection of taxes or cess
or surcharge by the Government or a Municipality
or a Commune Panchayat or any other authority
Removal of
difficulties.
Amendment
of certain
Acts.
Act
No. 9
of 1973.
726
LA GAZETTE DE L'ETAT
[PART–II
shall stand annulled or rescinded or modified in
as much as and to the extent such taxes are the
subject matter of Entry 52, Entry 54, Entry 55 and
Entry 62 of the State List of the Seventh Schedule
of the Constitution, as amended by the Constitution
(One Hundredth and First Amendment) Act, 2016.
174. (1) Save as otherwise provided in this Act,
on and from the date of commencement of this Act,
(i) The Puducherry Value Added Tax Act, 2007,
except in respect of goods included in the Entry
54 of the State List of the Seventh Schedule to
the Constitution, and
(ii) The Puducherry Sugarcane Development
and Levy of Cess Act, 1965,
(hereafter referred to as the repealed Acts) are hereby
repealed.
(2) The repeal of the said Acts and the amendment
of the Act specified in section 173 (hereafter referred
to as "such amendment" or "amended Act", as the case
may be) to the extent mentioned in sub-section (1) or
section 173 shall not-
(a) revive anything not in force or existing at
the time of such amendment or repeal; or
(b) affect the previous operation of the
amended Acts or repealed Acts and orders or
anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation, or
liability acquired, accrued or incurred under the
amended Acts or repealed Acts or orders under
such repealed or amended Acts:
Repeal and
saving.
Act
No. 9
of 2007.
Act
No. 17
of 1965.
727
PART–II]
LA GAZETTE DE L'ETAT
Provided that any tax exemption granted as an
incentive
against
investment
through
a
notification shall not continue as privilege if the
said notification is rescinded on or after the
appointed day; or
(d) affect any tax, surcharge, penalty, fine,
interest as are due or may become due or any
forfeiture or punishment incurred or inflicted in
respect of any offence or violation committed
against the provisions of the amended Acts or
repealed Acts; or
(e)
affect
any
investigation,
inquiry,
verification (including scrutiny and audit),
assessment proceedings, adjudication and any
other legal proceedings or recovery of arrears or
remedy in respect of any such tax, surcharge,
penalty, fine, interest, right, privilege, obligation,
liability, forfeiture or punishment, as aforesaid,
and any such investigation, inquiry, verification
(including scrutiny and audit), assessment
proceedings, adjudication and other legal
proceedings or recovery of arrears or remedy
may be instituted, continued or enforced, and any
such tax, surcharge, penalty, fine, interest,
forfeiture or punishment may be levied or
imposed as if these Acts had not been so
amended or repealed; or
(f) affect any proceedings including that
relating to an appeal, revision, review or
reference, instituted before, on or after the
appointed day under the said amended Acts or
repealed Acts and such proceedings shall be
continued under the said amended Acts or
repealed Acts as if this Act had not come into
force and the said Acts had not been amended or
repealed.
728
LA GAZETTE DE L'ETAT
[PART–II
(3) Notwithstanding anything contained in this
section, any action or proceedings already initiated by
invoking the powers vested under section 81 of the
Puducherry Value Added Tax Act, 2007 shall continue
to be valid till the final disposal of the proceedings.
(4) The mention of the particular matters
referred to in section 173 and sub-section (1) shall
not be held to prejudice or affect the general
application of section 2 of the Puducherry General
Clauses Act, 1965 with regard to the effect of repeal.
SCHEDULE I
[See section 7]
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF
MADE WITHOUT CONSIDERATION
1. Permanent transfer or disposal of business
assets where input tax credit has been availed on
such assets.
2. Supply of goods or services or both between
related persons or between distinct persons as
specified in section 25, when made in the course
or furtherance of business:
Provided that gifts not exceeding fifty thousand
rupees in value in a financial year by an employer
to an employee shall not be treated as supply of
goods or services or both.
3. Supply of goods—
(a) by a principal to his agent where the
agent undertakes to supply such goods on
behalf of the principal; or
Act
No. 9
of 2007.
Act
No. 13
of 1965.
729
PART–II]
LA GAZETTE DE L'ETAT
(b) by an agent to his principal where the
agent undertakes to receive such goods on
behalf of the principal.
4. Import of services by a taxable person from
a related person or from any of his other
establishments outside India, in the course or
furtherance of business.
SCHEDULE II
[See section 7]
ACTIVITIES TO BE TREATED AS SUPPLY OF
GOODS OR SUPPLY OF SERVICES
1. Transfer
(a) any transfer of the title in goods is a supply
of goods;
(b) any transfer of right in goods or of
undivided share in goods without the transfer of
title thereof, is a supply of services;
(c) any transfer of title in goods under an
agreement which stipulates that property in goods
shall pass at a future date upon payment of full
consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to
occupy land is a supply of services;
(b) any lease or letting out of the building
including a commercial, industrial or residential
complex for business or commerce, either
wholly or partly, is a supply of services.
3. Treatment or process
Any treatment or process which is applied to
another person's goods is a supply of services.
730
LA GAZETTE DE L'ETAT
[PART–II
4. Transfer of business assets
(a) where goods forming part of the assets of
a business are transferred or disposed of by or
under the directions of the person carrying on the
business so as no longer to form part of those
assets, whether or not for a consideration, such
transfer or disposal is a supply of goods by the
person;
(b) where, by or under the direction of a
person carrying on a business, goods held or used
for the purposes of the business are put to any
private use or are used, or made available to any
person for use, for any purpose other than a
purpose of the business, whether or not for a
consideration, the usage or making available of
such goods is a supply of services;
(c) where any person ceases to be a taxable
person, any goods forming part of the assets of
any business carried on by him shall be deemed
to be supplied by him in the course or
furtherance of his business immediately before
he ceases to be a taxable person, unless—
(i) the business is transferred as a going
concern to another person; or
(ii) the business is carried on by a personal
representative who is deemed to be a taxable
person.
5. Supply of services
The following shall be treated as supply of
services, namely:-
(a) renting of immovable property;
(b) construction of a complex, building, civil
structure or a part thereof, including a complex
731
PART–II]
LA GAZETTE DE L'ETAT
or building intended for sale to a buyer, wholly
or partly, except where the entire consideration
has been received after issuance of completion
certificate, where required, by the competent
authority or after its first occupation, whichever
is earlier.
Explanation.—For the purposes of this clause—
(1) the expression "competent authority"
means
the
Government
or
any
authority
authorised to issue completion certificate under
any law for the time being in force and in case
of non-requirement of such certificate from such
authority, from any of the following, namely:-
(i) an architect registered with the Council
of
Architecture
constituted
under
the
Architects Act, 1972; or
(ii) a chartered engineer registered with
the Institution of Engineers (India); or
(iii)
a
licensed
surveyor
of
the
respective local body of the city or town or
village or development or planning authority;
(2)
the expression "construction" includes
additions, alterations, replacements or remodeling
of any existing civil structure;
(c) temporary transfer or permitting the use or
enjoyment of any intellectual property right;
(d) development,
design,
programming,
customisation, adaptation, upgradation, enhancement,
implementation of information technology software;
(e) agreeing to the obligation to refrain from
an act, or to tolerate an act or a situation, or to
do an act; and
Central
Act 20
of 1972.
732
LA GAZETTE DE L'ETAT
[PART–II
(f) transfer of the right to use any goods for
any purpose (whether or not for a specified
period) for cash, deferred payment or other
valuable consideration.
6. Composite supply
The following composite supplies shall be
treated as a supply of services, namely:—
(a) works contract as defined in clause (119) of
section 2; and
(b) supply, by way of or as part of any service
or in any other manner whatsoever, of goods,
being food or any other article for human
consumption or any drink (other than alcoholic
liquor for human consumption), where such
supply or service is for cash, deferred payment
or other valuable consideration.
7. Supply of Goods
The following shall be treated as supply of
goods, namely:-
Supply of goods by any unincorporated
association or body of persons to a member
thereof for cash, deferred payment or other
valuable consideration.
SCHEDULE III
[See section 7]
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE
TREATED NEITHER AS A SUPPLY OF GOODS NOR
A SUPPLY OF SERVICES
1. Services by an employee to the employer in
the course of or in relation to his employment.
733
PART–II]
LA GAZETTE DE L'ETAT
2. Services by any court or Tribunal established
under any law for the time being in force.
3.(a) the functions performed by the Members
of Parliament, Members of State Legislature,
Members of Panchayats, Members of Municipalities
and Members of other local authorities;
(b) the duties performed by any person who
holds any post in pursuance of the provisions of
the Constitution in that capacity; or
(c) the duties performed by any person as a
Chairperson or a Member or a Director in a body
established by the Central Government or a State
Government or local authority and who is not
deemed as an employee before the commencement
of this clause.
4. Services of funeral, burial, crematorium or
mortuary including transportation of the deceased.
5. Sale of land and, subject to clause (b) of
paragraph 5 of schedule II, sale of building.
6. Actionable claims, other than lottery, betting
and gambling.
Explanation.— For the purposes of paragraph 2,
the term "court" includes District Court, High Court
and Supreme Court.
online publication at “http://styandptg.puducherry.gov.in”
Government Central Press
Directorate of Stationery and Printing
Puducherry-605 009.
————