No. 383]

CHENNAI, WEDNESDAY, NOVEMBER 14, 2018

Aippasi 28, Vilambi, Thiruvalluvar Aandu–2049

TAMIL NADU

GOVERNMENT GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT OF TAMIL NADU

[R. Dis. No. 197/2009.

2018

[Price: Rs. 4.80 Paise.

Part IV—Section 2

Tamil Nadu Acts and Ordinances

The following Ordinance which was promulgated by the Governor on

the 13th November 2018 is hereby published for general information:—

TAMIL NADU ORDINANCE NO. 2 OF 2018.

An Ordinance to amend the Tamil Nadu Goods and

Services Tax Act, 2017.

WHEREAS the Legislative Assembly of the State is not in session

and the Governor of Tamil Nadu is satisﬁ ed that circumstances exist

which render it necessary for him to take immediate action for the

purposes hereinafter appearing;

NOW, THEREFORE, in exercise of the powers conferred by

clause (1) of Article 213 of the Constitution, the Governor hereby

promulgates the following Ordinance:—

1. (1) This Ordinance may be called the Tamil Nadu Goods and

Services Tax (Amendment) Ordinance, 2018.

Short title and

commence-

ment.

(2) (i) Sections 3 and 30 shall be deemed to have come into

force on the 1^st day of July 2017;

(ii) Other sections of this Ordinance shall come into force

on such date as the State Government may, by notiﬁ cation in the Oﬃ cial

Gazette, appoint:

Provided that diﬀ erent dates may be appointed for diﬀ erent

provisions of this Ordinance and any reference in any such provision to

the commencement of this Ordinance shall be construed as a reference

to the coming into force of that provision.

Tamil Nadu Act 19

of 2017.

2. In section 2 of the Tamil Nadu Goods and Services Tax Act, 2017

(hereinafter referred to as the principal Act),—

Amendment of

section 2.

(1) in clause (4), for the expression “the Appellate Authority

and the Appellate Tribunal”, the expression “the Appellate Authority, the

Appellate Tribunal and the Authority referred to in sub-section (2) of

section 171” shall be substituted;

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[229]

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

(2) in clause (16), for the expression “Central Board of Excise

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

Customs” shall be substituted;

(3) in clause (17), for sub-clause (h), the following sub-clause

shall be substituted, namely:—

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

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

club; and”;

(4) clause (18) including the Explanation thereunder shall be

omitted;

(5) in clause (35), for the expression “clause (c)”, the expression

“clause (b)” shall be substituted;

(6) in clause (69), in sub-clause (f), after the expression

“Article 371”, the expression “and Article 371J” shall be inserted;

(7) in clause (102), the following Explanation shall be added,

namely:—

“Explanation.— For the removal of doubts, it is hereby

clariﬁ ed that the expression “services” includes facilitating or arranging

transactions in securities.”.

Amendment of

section 7.

3. In section 7 of the principal Act,—

(1) in sub-section (1),—

(a) in clause (b), after the expression “or furtherance of

business;”, the expression “and” shall be added;

(b) in clause (c), the expression “and” occurring after the

expression “without a consideration;”, shall be omitted;

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

inserted, namely:—

“(1A) Where certain activities or transactions, constitute a

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

be treated either as supply of goods or supply of services as referred to

in Schedule II.”;

(3) in sub-section (3), for the expression “sub-sections (1)

and (2)”, the expression “sub-sections (1), (1A) and (2)” shall be

substituted.

Amendment of

section 9.

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

sub-section shall be substituted, namely:—

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

Council, by notiﬁ cation, specify a class of registered persons who shall,

in respect of supply of speciﬁ ed categories of goods or services or both

received from an unregistered supplier, pay the tax on reverse charge

basis as the recipient of such supply of goods or services or both, and

all the provisions of this Act shall apply to such recipient as if he is the

person liable for paying the tax in relation to such supply of goods or

services or both.”.

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

231

5. In section 10 of the principal Act,—

(1) in sub-section (1),—

Amendment of

section 10.

(a) for the expression “in lieu of the tax payable by him,

an amount calculated at such rate”, the expression “in lieu of the tax

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

calculated at such rate” shall be substituted;

(b) in the proviso, for the expression “one crore rupees,

as may be recommended by the Council.”, the expression “one crore

and ﬁ fty lakh rupees as may be recommended by the Council:” shall be

substituted;

namely:—

“Provided further that a person who opts to

pay tax under clause (a) or clause (b) or clause (c) may supply

services (other than those referred to in clause (b) of paragraph 6 of

Schedule II), of value not exceeding ten per cent of turnover in the

State in the preceding ﬁ nancial year or ﬁ ve lakh rupees, whichever is

higher.”;

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

be substituted, namely:—

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

in the supply of services;”.

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

clause (a), the expression “sub-section (1) of ” shall be omitted.

Amendment of

section 12.

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

expression “sub-section (2) of ” in two places where it occurs, shall be

omitted.

Amendment of

section 13.

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

(1) in clause (b), for the Explanation, the following Explanation

shall be substituted, namely:—

Amendment of

section 16.

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

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

case may be, services—

(i)

where the goods are delivered by the supplier to a

recipient or any other person on the direction of such registered person,

whether acting as an agent or otherwise, before or during movement

of goods, either by way of transfer of documents of title to goods or

otherwise;

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

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

(2) in clause (c), for the expression “section 41”, the

expression “section 41 or section 43A” shall be substituted.

9. In section 17 of the principal Act,—

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

added, namely:—

Amendment of

section 17.

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

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

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

activities or transactions speciﬁ ed in Schedule III, except those speciﬁ ed

in paragraph 5 of the said Schedule.”;

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

clauses shall be substituted, namely:—

“(a) motor vehicles for transportation of persons having

approved seating capacity of not more than thirteen persons (including

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

supplies, namely:—

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

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

(i)

for making the following taxable supplies, namely:-

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

(B) transportation of passengers; or

(D) imparting training on ﬂ ying such aircraft;

(ii) for transportation of goods;

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

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

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

Provided that the input tax credit in respect of such services

shall be available—

(i)

where the motor vehicles, vessels or aircraft referred

to in clause (a) or clause (aa) are used for the purposes speciﬁ ed

therein;

(ii) where received by a taxable person engaged—

(I)

in the manufacture of such motor vehicles,

vessels or aircraft; or

(II)

in the supply of general insurance services in

respect of such motor vehicles, vessels or aircraft insured by him;

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

(i)

food and beverages, outdoor catering, beauty

treatment, health services, cosmetic and plastic surgery, leasing, renting

or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or

clause (aa) except when used for the purposes speciﬁ ed therein, life

insurance and health insurance:

Provided that the input tax credit in respect of such goods

or services or both shall be available where an inward supply of such

goods or services or both is used by a registered person for making an

outward taxable supply of the same category of goods or services or

both or as an element of a taxable composite or mixed supply;

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

233

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

and

(iii) travel beneﬁ ts extended to employees on vacation

such as leave or home travel concession:

Provided that the input tax credit in respect of such goods or

services or both shall be available, where it is obligatory for an employer

to provide the same to its employees under any law for the time being in

force.”.

10. In section 20 of the principal Act, in the Explanation, in

clause (c), for the expression “under entry 84”, the expression “under

entries 84 and 92A” shall be substituted.

Amendment of

section 20.

11. In section 22 of the principal Act,—

Amendment of

section 22.

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

shall be added, namely:—

“Provided further that where such person makes taxable

supplies of goods or services or both from a special category State in

respect of which the Central Government has enhanced the aggregate

turnover referred to in the ﬁ rst proviso, he shall be liable to be registered

if his aggregate turnover in a ﬁ nancial year exceeds the amount

equivalent to such enhanced turnover.”;

(2) in the Explanation, in clause (iii), the following shall be

added at the end, namely:—

“except the State of Jammu and Kashmir and the States

of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim

and Uttarakhand.”.

12. In section 24 of the principal Act, for clause (x), the following

clause shall be substituted, namely:—

Amendment of

section 24.

“(x) every electronic commerce operator who is required to

collect tax at source under section 52.”.

13. In section 25 of the principal Act,—

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

Explanation, the following proviso shall be inserted, namely:-

Amendment of

section 25.

“Provided further that a person having a unit, as deﬁ ned in

the Special Economic Zones Act, 2005 (Central Act 28 of 2005), in a

Special Economic Zone or being a Special Economic Zone developer

shall have to apply for a separate registration, as distinct from his place

of business located outside the Special Economic Zone in the same

State.”;

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

shall be substituted, namely:—

“Provided that a person having multiple places of business

in the State may be granted a separate registration for each such place

of business, subject to such conditions as may be prescribed.”.

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

Amendment of

section 29.

14. In Section 29 of the principal Act,—

(1) in

the

marginal

heading,

after

the

expression

“Cancellation”, the expression “or suspension” shall be inserted;

(2) in sub-section (1), after clause (c), the following proviso

shall be added, namely:—

“Provided that during pendency of the proceedings

relating to cancellation of registration ﬁ led by the registered person, the

registration may be suspended for such period and in such manner as

may be prescribed.”;

(3) in sub-section (2), after the proviso, the following proviso

shall be added, namely:—

“Provided further that during pendency of the proceedings

relating to cancellation of registration, the proper oﬃ cer may suspend the

registration for such period and in such manner as may be prescribed.”.

Amendment of

section 34.

15. In section 34 of the principal Act,—

(1) in sub-section (1),—

(i)

for the expression “Where a tax invoice has”, the

expression “Where one or more tax invoices have” shall be substituted;

(ii) for the expression “a credit note”, the expression

“one or more credit notes for supplies made in a ﬁ nancial year” shall be

substituted;

(2) in sub-section (3),—

(i)

for the expression “Where a tax invoice has”, the

expression “Where one or more tax invoices have” shall be substituted;

(ii) for the expression “a debit note”, the expression

“one or more debit notes for supplies made in a ﬁ nancial year” shall be

substituted.

Amendment of

section 35.

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

following proviso shall be added, namely:—

“Provided that nothing contained in this sub-section shall

apply to any department of the Central Government or a State

Government or a local authority, whose books of account are subject

to audit by the Comptroller and Auditor-General of India or an auditor

appointed for auditing the accounts of local authorities under any law

for the time being in force.”.

Amendment of

section 39.

17. In section 39 of the principal Act,—

(1) in sub-section (1),—

(a) for the expression “in such form and manner as may

be prescribed”, the expression “in such form, manner and within such

time as may be prescribed” shall be substituted;

(b) the expression “on or before the twentieth day of

the month succeeding such calendar month or part thereof” shall be

omitted;

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

235

“Provided that the Government may, on the

recommendations of the Council, notify certain classes of registered

persons who shall furnish return for every quarter or part thereof, subject

to such conditions and safeguards as may be speciﬁ ed therein.”;

(2) in sub-section (7), the following proviso shall be added,

namely:—

“Provided

that

the

Government

may,

the

recommendations of the Council, notify certain classes of registered

persons who shall pay to the Government the tax due or part thereof

as per the return on or before the last date on which he is required to

furnish such return, subject to such conditions and safeguards as may

be speciﬁ ed therein.”;

(3) in sub-section (9),—

(a) for the expression “in the return to be furnished for

the month or quarter during which such omission or incorrect particulars

are noticed”, the expression “in such form and manner as may be

prescribed” shall be substituted;

(b) in the proviso, for the expression “the end of the

ﬁ nancial year”, the expression “the end of the ﬁ nancial year to which

such details pertain” shall be substituted.

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

inserted, namely:—

Insertion of new

section 43A.

“43A. Procedure for furnishing return and availing input

tax credit.— (1) Notwithstanding anything contained in sub-section (2)

of section 16, section 37 or section 38, every registered person shall in

the returns furnished under sub-section (1) of section 39 verify, validate,

modify or delete the details of supplies furnished by the suppliers.

(2) Notwithstanding anything contained in section 41,

section 42 or section 43, the procedure for availing of input tax credit by

the recipient and veriﬁ cation thereof shall be such as may be prescribed.

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

by the supplier on the common portal, for the purposes of availing input

tax credit by the recipient shall be such as may be prescribed.

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

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

as may be prescribed and such procedure may include the maximum

amount of the input tax credit which can be so availed, not exceeding

twenty per cent of the input tax credit available, on the basis of details

furnished by the suppliers under the said sub-section.

(5) The amount of tax speciﬁ ed in the outward supplies

for which the details have been furnished by the supplier under

sub-section (3) shall be deemed to be the tax payable by him under the

provisions of the Act.

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

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

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

have been furnished under sub-section (3) or sub-section (4) but return

thereof has not been furnished.

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

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

made in such manner as may be prescribed and such procedure may

provide for non-recovery of an amount of tax or input tax credit wrongly

availed not exceeding one thousand rupees.

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

amount in relation to outward supplies, the details of which can be

furnished under sub-section (3) by a registered person,—

(a) within six months of taking registration;

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

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

of payment of such defaulted amount,

shall be such as may be prescribed.”.

Amendment of

section 48.

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

expression “section 45”, the expression “and to perform such other

functions” shall be inserted.

Amendment of

section 49.

20. In section 49 of the principal Act,—

(1) in sub-section (2), for the expression “section 41”, the

expression “section 41 or section 43A” shall be substituted;

(2) in sub-section (5),—

(a) in clause (c), the following proviso shall be added,

namely:—

“Provided that the input tax credit on account of State

tax shall be utilised towards payment of integrated tax only where the

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

for payment of integrated tax.”;

(b) in clause (d), the following proviso shall be added,

namely:—

“Provided that the input tax credit on account of Union

territory tax shall be utilised towards payment of integrated tax only

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

available for payment of integrated tax.”.

Insertion of new

sections 49A

and 49B.

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

be inserted, namely:—

“49A. Utilisation of input tax credit subject to certain

conditions.— Notwithstanding anything contained in section 49, the

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

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

credit available on account of integrated tax has ﬁ rst been utilised fully

towards such payment.

49B. Order of utilisation of the input tax credit.—

Notwithstanding anything contained in this Chapter and subject to the

provisions of clause (e) and clause (f) of sub-section (5) of section 49, the

Government may, on the recommendations of the Council, prescribe

the order and manner of utilisation of the input tax credit on account of

integrated tax, Central tax, State tax or Union territory tax, as the case

may be, towards payment of any such tax.”.

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237

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

expression “section 37”, the expression “section 37 or section 39” shall

be substituted.

Amendment of

section 52.

23. In section 54 of the principal Act,—

(1) in sub-section (8), in clause (a),—

Amendment of

section 54.

(a) for the expression “on zero-rated supplies”, the

expression “on export” shall be substituted;

(b) for the expression “such zero-rated supplies”, the

expression “such exports” shall be substituted;

(2) in the Explanation, in clause (2),—

(a) in sub-clause (c), in item (i), after the expression

“foreign exchange”, the expression “or in Indian rupees wherever

permitted by the Reserve Bank of India” shall be inserted;

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

substituted, namely:—

“(e)

in the case of refund of unutilised input tax

credit under clause (ii) of the ﬁ rst proviso to sub-section (3), the due date

for furnishing of return under section 39 for the period in which such

claim for refund arises;”.

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

following Explanation shall be added, namely:—

Amendment of

section 79.

“Explanation.— For the purposes of this section, the

word person shall include “distinct persons” as referred to in

sub-section (4) or, as the case may be, sub-section (5) of section 25.”.

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

clause (b), after the expression “arising from the said order,”, the

expression “subject to a maximum of twenty-ﬁ ve crore rupees,” shall be

inserted.

Amendment of

section 107.

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

clause (b), after the expression “arising from the said order,” the

expression “subject to a maximum of ﬁ fty crore rupees,” shall be inserted.

Amendment of

section 112.

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

the proviso, for the expression “seven days”, in two places where it

occurs, the expression “fourteen days” shall be substituted.

Amendment of

section 129.

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

clause (b), after the proviso, the following proviso shall be added,

namely:—

Amendment of

section 143.

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

may, on suﬃ cient cause being shown, be extended by the Commissioner

for a further period not exceeding one year and two years, respectively.”.

29. In Schedule I of the principal Act, in paragraph 4, for the

expression “taxable person”, the expression “person” shall be

substituted.

Amendment of

Schedule I.

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

expression “ACTIVITIES”, the expression “OR TRANSACTIONS” shall

be inserted.

Amendment of

Schedule II.

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

Amendment of

Schedule III.

31. In Schedule III of the principal Act,—

(1) after paragraph 6, the following paragraphs shall be

inserted, namely:—

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

place outside India without such goods entering into India.

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

clearance for home consumption;

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

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

goods have been dispatched from the port of origin located outside

India but before clearance for home consumption.”;

(2) The

existing

Explanation

shall

numbered

Explanation 1 and after Explanation 1 as so numbered, the following

Explanation shall be added, namely:—

“Explanation 2.— For the purposes of paragraph 8, the expression

“warehoused goods” shall have the same meaning as assigned to it in

the Customs Act, 1962 (Central Act 52 of 1962).”.

13th November 2018.

BANWARILAL PUROHIT,

Governor of Tamil Nadu.

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239

PRINTED AND PUBLISHED BY THE DIRECTOR OF STATIONERY AND PRINTING, CHENNAI

ON BEHALF OF THE GOVERNMENT OF TAMIL NADU

EXPLANATORY STATEMENT.

The Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017) was

enacted with a view to make a provision for levy and collection of tax on intra-State supply of

goods or services or both by the State Government.

2. The Tamil Nadu Act 19 of 2017 provides for certain provisions for smooth transition of

existing tax payers to new goods and services tax regime. However, the new tax regime had

faced certain diﬃ culties. One of the major inconveniences caused to the ta payers, especially

small and medium enterprises, was the process of ﬁ ling return and payment of tax under the

Goods and Services Tax laws. In this regard, the proposed new return ﬁ ling system, envisages

quarterly ﬁ ling of return and tax payment for small tax payers along with minimum paperwork.

In order to implement the new return ﬁ ling system, and also to overcome the above diﬃ culties,

the Government have decided to amend the said Tamil Nadu Act 19 of 2017.

3. The Ordinance seeks to give eﬀ ect to the above decision.

(By order of the Governor)

S.S. POOVALINGAM,

Secretary to Government,

Law Department.