681

Panaji, 7th June, 2018 (Jyaistha 17, 1940)

SERIES I No. 10

Reg. No. G-2/RNP/GOA/32/2018-20

RNI No. GOAENG/2002/6410

PUBLISHED BY AUTHORITY

Suggestions are welcomed on e-mail: dir–[email protected]

Department

Notification/Order

Subject

Pages

1. Education, Art & Culture

Not.- DAC/CS-V/Amendment-

Goa State Cultural Award Scheme.

681

Dir. & ex officio Jt. Secy.

-GSCA/2018/1866

2. Finance

Not.- CCT/1-16/2018-19/862

Time & details of Examination Programme.

683

Office of the Commissioner

of Commercial Taxes

3.a. Law & Judiciary

O.M.- 8/6/2008-LD(Estt)Part-I

Instruction for Notaries for registering any

684

Under Secretary

/1013

instrument under the Registration Act/Notaries

Act & Rules.

b. —do—

Not.- 10/8/2017-LA/123(l)

The Central Goods and Services Tax Act, 2017.

684

4. Revenue

Ord.- 35/01/03/2018-RD/1029

Amendment of Government order dated 30-3-2017. 785

Under Secretary

INDEX

GOVERNMENT OF GOA

Department of Education, Art & Culture

Directorate of Art & Culture

___

Notification

DAC/CS-V/Amendment-GSCA/2018/1866

The Government of Goa is pleased to frame

the following Scheme i.e.

1. Short title and commencement.— (i) This

scheme shall be called “Goa State Cultural

Award Scheme”.

(ii) This scheme shall come into force from

the date of its publication in the Official Gazette

and shall remain in force upto 31st March,

2021.

2. Introduction.— The Government of Goa

has designed this scheme, in order to honor

the eminent personalities in the field of Art &

Culture. The scheme intends to give

recognition to the Goan artists par excellent

for their lifetime achievement and for their

extra ordinary contribution to the field of Art

& Culture in Goa.

3. Objectives.— The objectives of the

scheme are as follows:—

(i) To honour the eminent personalities in

the field of Art & Culture.

(ii) To felicitate the artists par excellence for

their lifetime achievements.

(iii) To recognize and appreciate the artists

par excellence as State Artist of Goa.

4. Eligibility.— (i) An individual artist who

has completed 60 years of age and who has

given extraordinary contribution to the field

of art & culture at large and in his/her

respective field of art in specific, shall be

eligible to receive Goa State Cultural Award

under this scheme.

(ii) An individual Goan artist to avail benefit

under this scheme will have to have

contributed in his/her respective field of art

in Goa for minimum 10 years out of his/her

entire career as a practicing artist.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 10

7TH JUNE, 2018

682

(iii) No person shall be eligible for second

time to avail the benefit under this scheme.

(iv) No award will be presented

posthumously under this scheme. However,

during selection process if death of any artist

occurs after recommendation of his name then

Task Force Committee may consider his name

for “award”, in such circumstances award will

be presented posthumously.

(v) Every year maximum 12 (Twelve)

persons in the field of (1) Music, (2) Dance, (3)

Drama/Theatre including Tiatr, (4) Performing

Folk Art, (5) Fine Art & Craft, (6) Bhajan/Kirtan/

/Choir, (7) Film & associated Audio Visual

Work of Art, (8) Overall contribution in the

field of art & culture, (9) Literature, (10)

(Creative) Photography shall be considered for

presenting the State Cultural Awards under

this scheme. However, if no eligible candidate

is found in a particular category for any

particular year, then no award shall be given

in that particular category for that particular

year.

5. Nature of Assistance.— Eligible artist

shall be honored with a memento, shawl,

sriphal, certificate of appreciation and financial

purse to the extent of Rs. 1,00,000/- per

individual and monthly financial assistance as

provided under the scheme of Kala Sanman.

However, no assistance shall be paid to the

dependent after the death of the artist. Further

if the awardee is availing pension under any

State Government or Central Government

scheme, then, the awardee shall not be

eligible for the financial assistance under the

Kala Samman Scheme.

6. Procedure of receiving recommen-

dations.— Every year the Department of Art

& Culture shall release a press advertisement

thereby inviting recommendations of the

names for State Cultural Award under this

scheme from eminent institutions, individuals

working in the field of Art & Culture. No self-

recommendation shall be accepted from the

artist. Any type of canvasing/solicitation will

lead to disqualification of the applicant. The

Department of Art & Culture may also write

to any institutions, individuals from the field,

to suggest/recommend the names for State

Cultural Award, if required. The committee

constituted for the purpose of this scheme

may also suo-moto take cognizance of any

individual

artist

who

have

lifetime

achievement/contribution in the field of

Art and consider his/her opinion for the

recommendation of the artist for the award.

7. Committee.— For better implementation

of the scheme, the Government shall

constitute a committee of members who are

recipient of Goa State Cultural Awards.

Committee shall meet as and when required

and shall consider the recommendations

received as well as consider the names suo-

moto at its own level and do selection of the

artist category wise and submit its

recommendations to the Director of Art &

Culture. The term of one committee shall be

for 3 years.

8. Felicitation of Eligible Artists.— Once

recommendations are received from the

committee, the Director of Art & Culture shall

obtain the acceptance of concerned artist to

receive the State Cultural Award. After

obtaining such acceptance from the

respective artist, the Director of Art & Culture

shall honour the artist by presenting shawl,

sriphal, memento, certificate of appreciation

and financial purse of Rs. 1,00,000/- in the

felicitation programme organized by the

Department of Art & Culture after obtaining

due approval of the Government. An eminent

personality of National and International

repute in the field of Art & Culture and

Literature shall be invited for the Presentation

Function. The awardee will also be provided

financial assistance as provided under Kala

Samman scheme.

9. Framing of Guidelines.— For better

implementation of this scheme, Government

may frame guidelines from time to time, if

required.

10. Relaxation.— The Government is

empowered to relax all or any of the clause

provided in the scheme, if found deemed fit,

for reasons to be recorded.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 10

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683

11. Interpretation.— If any questions arises

regarding Interpretation of any clause, word,

expression or entire scheme, then the decision

about the Interpretation shall lie with the

Government.

12. Redressal of Grievances and Dispute.—

If any grievance arises, out of implementation

of this scheme then, the Minister for Art &

Culture shall hear and decide such matter and

the decision of the Minister for Art and Culture

in this regard shall be final.

This has been issued with the concurrence

of Finance Department under the U. O. No.

1355/F dated 11-5-2018.

The earlier notification hereby stands

repealed.

By order and in the name of Governor

of Goa.

Gurudas P. Pilarnekar, Director & ex officio

Joint Secretary (Art and Culture).

Panaji, 1st June, 2018.

Sr. No.

Day and date

Time

Paper

Marks

1.

Monday 09-07-2018

02.30 p.m.

I

100

to 05.30 p.m.

The Goa GST Act, 2017, CGST Act, 2017,

IGST Act, 2017, Rules, Notifications an

Orders issued and The Goa Value Added

Tax, 2005

2.

Tuesday 10-07-2018

02.30 p.m.

II

50

to 4.00 p.m.

Accounts (with books) & Office Procedure

3.

Wednesday 11-7-2018

02.30 p. m. to

III

100

5.30 p. m.

Commercial Accounts

4.

Thursday 12-07-2018

02.30 p.m.

IV

50

to 04.00 p.m

PART I

Scrutiny of Returns, Assessment, Internal Audit

(theory and problems)

5.

Friday 13-07-2018

02.30 p.m.

V

100

to 05.30 p.m.

Business Law & Judicial Matters (open books)

6.

Saturday 14-07-2018

02.30 p.m.

IV

50

to 04.00 p.m.

PART II

Computer Lab Work

7.

Monday 30-07-2018 to

10.00 a.m. to

VI

50

Thursday 02-08-2018

01.00 p.m. &

Project Work

(In batches)

02.30 p.m. to

05.30 p.m.

Dipak M. Bandekar, Commissioner of Commercial Taxes.

Panaji, 6th June, 2018.

———ttt———

Department of Finance

Office of the Commissioner of Commercial Taxes

Notification

CCT/1-16/2018-19/862

In pursuance of Rules 2 and 9 of the Departmental Examination Rules published

in the Official Gazette, Series I No. 5 dated 03-05-2018 vide Notification No. 6/17/83-Fin (R&C)/

847 dated 24-04-2018, the Commissioner is pleased to notify 9th July, 2018 to 14th July, 2018

both days inclusive and 30th July, 2018 to 2nd August, 2018 both days inclusive, as the dates

on which the Departmental Examination for the Members of the Ministerial Staff, working in

the Department of Commercial Taxes, who are eligible for promotion to the post of Commercial

Tax Inspector as per the Recruitment Rules.

The time and details of the Examination programme will be as follows:—

OFFICIAL GAZETTE — GOVT. OF GOA

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684

Department of Law & Judiciary

Law (Establishment) Division

Office Memorandum

8/6/2008-LD(Estt)Part-I/1013

It is come to the notice of the Government

that many people give their premises on

rent without complying with the provisions of

Law.

In pursuance to the directions of the

Government, the Notaries of the State of Goa

are hereby instructed to ensure that due stamp

duty is paid before registering any instrument

under the Registration Act/Notaries Act &

Rules.

Further, the Directorate of Municipal

Administration, Directorate of Panchayats,

Department of Urban Development and

Home Department may issue instructions to

those concerned to check the transactions/

/instruments for establishments under their

jurisdictions and incase of any discrepancies/

/complaints, the same may be referred to the

State Registrar-cum-Head of Notary Services.

The above instructions shall be strictly

complied by the Notaries failing which action

will be taken against any breach.

Diwan N. Rane, Under Secretary (Estt.)

(Link).

Porvorim, 1st June, 2018.

————

Legal Affairs Division

Notification

10/8/2017-LA/183(l)

The Central Goods and Services Tax Act,

2017 (Central Act No. 12 of 2017), which has

been passed by Parliament and assented to by

the President on 12-04-2017 and published in

the Gazette of India, Extraordinary, Part II,

Section 1, dated 12-04-2017, is hereby published

for the general information of the public.

Julio Barbosa Noronha, Joint Secretary

(Law).

Porvorim, 16th October, 2017.

THE CENTRAL GOODS AND SERVICES

ACT, 2017

__

CHAPTER I

Preliminary

Sections

1. Short title, extent and commencement.

2. Definitions.

CHAPTER II

Administration

3. Officers under this Act.

4. Appointment of officers.

5. Powers of officers.

6. Authorisation of officers of State tax or Union

territory tax as proper officer in certain

circumstances.

CHAPTER III

Levy and Collection of Tax

7. Scope of supply.

8. Tax liability on composite and mixed supplies.

9. Levy and collection.

10. Composition levy.

11. Power to grant exemption from tax.

CHAPTER IV

Time and Value of Supply

12. Time of supply of goods.

13. Time of supply of services.

14. Change in rate of tax in respect of supply of

goods or services.

15. Value of taxable supply.

CHAPTER V

Input Tax Credit

16. Eligibility and conditions for taking input tax

credit.

17. Apportionment of credit and blocked credits.

18. Availability of credit in special circumstances.

19. Taking input tax credit in respect of inputs

and capital goods sent for job work.

20. Manner of distribution of credit by Input

Service Distributor.

21. Manner of recovery of credit distributed in

excess.

OFFICIAL GAZETTE — GOVT. OF GOA

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685

Sections

CHAPTER VI

Registration

22. Persons liable four registration.

23. Persons not liable for registration.

24. Compulsory registration in certain cases.

25. Procedure for registration.

26. Deemed registration.

27. Special provisions relating to casual taxable

person and non-resident taxable person.

28. Amendment of registration.

29. Cancellation of registration.

30. Revocation of cancellation of registration.

CHAPTER VII

Tax Invoice, Credit and Debit Notes

31. Tax invoice.

32. Prohibition of unauthorised collection of tax.

33. Amount of tax to be indicated in tax invoice

and other documents.

34. Credit and debit notes.

CHAPTER VIII

Accounts and Records

35. Accounts and other records.

36. Period of retention of accounts.

CHAPTER IX

Returns

37. Furnishing details of outward supplies.

38. Furnishing details of inward supplies.

39. Furnishing of returns.

40. First return.

41. Claim of input tax credit and provisional

acceptance thereof.

42. Matching, reversal and reclaim of input tax

credit.

43. Matching, reversal and reclaim of reduction

in output tax liability.

44. Annual return.

45. Final return.

46. Notice to return defaulters.

47. Levy of late fee.

48. Goods and services tax practitioners.

CHAPTER X

Payment of Tax

49. Payment of tax, interest, penalty and other

amounts.

50. Interest on delayed payment of tax.

Sections

51. Tax deduction at source.

52. Collection of tax at source.

53. Transfer of input tax credit.

CHAPTER XI

Refunds

54. Refund of tax.

55. Refund in certain cases.

56. Interest on delayed refunds.

57. Consumer Welfare Fund.

58. Utilisation of Fund.

CHAPTER XII

Assessment

59. Self-assessment.

60. Provisional assessment.

61. Scrutiny of returns.

62. Assessment of non-filers of returns.

63. Assessment of unregistered persons.

64. Summary assessment in certain special cases.

CHAPTER XIII

Audit

65. Audit by tax authorities.

66. Special audit.

CHAPTER XIV

Inspection, Search, Seizure and Arrest

67. Power of inspection, search and seizure.

68. Inspection of goods in movement.

69. Power to arrest.

70. Power to summon persons to give evidence

and produce documents.

71. Access to business premises.

72. Officers to assist proper officers.

CHAPTER XV

Demands and Recovery

73. 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.

74. 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.

OFFICIAL GAZETTE — GOVT. OF GOA

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686

Sections

75. General provisions relating to determination

of tax.

76. Tax collected but not paid to Government.

77. Tax wrongfully collected and paid to Central

Government or State Government.

78. Initiation of recovery proceedings.

79. Recovery of tax.

80. Payment of tax and other amount in

instalments.

81. Transfer of property to be void in certain

cases.

82. Tax to be first charge on property.

83. Provisional attachment to protect revenue in

certain cases.

84. Continuation and validation of certain

recovery proceedings.

CHAPTER XVI

Liability to Pay in Certain Cases

85. Liability in case of transfer of business.

86. Liability of agent and principal.

87. Liability in case of amalgamation or merger

of companies.

88. Liability in case of company in liquidation.

89. Liability of directors of private company.

90. Liability of partners of firm to pay tax.

91. Liability of guardians, trustees, etc.

92. Liability of Court of Wards, etc.

93. Special provisions regarding liability to pay

tax, interest or penalty in certain cases.

94. Liability in other cases.

CHAPTER XVII

Advance Ruling

95. Definitions.

96. Authority for Advance Ruling.

97. Application for Advance Ruling.

98. Procedure on receipt of application.

99. Appellate Authority for Advance Ruling.

100. Appeal to Appellate Authority.

101. Orders of Appellate Authority.

102. Rectification of advance ruling.

103. Applicability of advance ruling.

104. Advance ruling to be void in certain

circumstances.

105. Powers of Authority and Appellate Authority.

106. Procedure of Authority and Appellate

Authority.

Sections

CHAPTER XVIII

Appeals and Revision

107. Appeals to Appellate Authority.

108. Powers of Revisional Authority.

109. Constitution of Appellate Tribunal and

Benches thereof.

110. President and Members of Appellate Tribunal,

their qualification, appointment, conditions

of service, etc.

111. Procedure before Appellate Tribunal.

112. Appeals to Appellate Tribunal.

113. Orders of Appellate Tribunal.

114. Financial and administrative powers of

President.

115. Interest on refund of amount paid for

admission of appeal.

116. Appearance by authorised representative.

117. Appeal to High Court.

118. Appeal to Supreme Court.

119. Sums due to be paid notwithstanding appeal,

etc.

120. Appeal not to be filed in certain cases.

121. Non-appealable decisions and orders.

CHAPTER XIX

Offences and Penalties

122. Penalty for certain offences.

123. Penalty for failure to furnish information

return.

124. Fine for failure to furnish statistics.

125. General penalty.

126. General disciplines related to penalty.

127. Power to impose penalty in certain cases.

128. Power to waive penalty or fee or both.

129. Detention, seizure and release of goods and

conveyances in transit.

130. Confiscation of goods or conveyances and levy

of penalty.

131. Confiscation or penalty not to interfere with

other punishments.

132. Punishment for certain offences.

133. Liability of officers and certain other persons.

134. Cognizance of offences.

135. Presumption of culpable mental state.

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Sections

136. Relevancy of statements under certain

circumstances.

137. Offences by companies.

138. Compounding of offences.

CHAPTER XX

Transitional Provisions

139. Migration of existing tax payers.

140. Transitional arrangements for input tax credit.

141. Transitional provisions relating to job work.

142. Miscellaneous transitional provisions.

CHAPTER XXI

Miscellaneous

143. Job work procedure.

144. Presumption as to documents in certain cases.

145. Admissibility of micro films, facsimile copies

of documents and computer print-outs as

documents and as evidence.

146. Common Portal.

147. Deemed exports.

148. Special procedure for certain processes.

149. Goods and services tax compliance rating.

150. Obligation to furnish information return.

151. Power to collect statistics.

152. Bar on disclosure of information.

153. Taking assistance from an expert.

154. Power to take samples.

155. Burden of proof.

156. Persons deemed to be public servants.

157. Protection of action taken under this Act.

158. Disclosure of information by a public servant.

159. Publication of information in respect of

persons in certain cases.

160. Assessment proceedings, etc., not to be

invalid on certain grounds.

161. Rectification of errors apparent on the face of

record.

162. Bar on jurisdiction of civil courts.

163. Levy of fee.

164. Power of Government to make rules.

165. Power to make regulations.

166. Laying of rules, regulations and notifications.

167. Delegation of powers.

Sections

168. Power to issue instructions or directions.

169. Service of notice in certain circumstances.

170. Rounding off of tax, etc.

171. Anti-profiteering measure.

172. Removal of difficulties.

173. Amendment of Act 32 of 1994.

174. Repeal and saving.

SCHEDULE I.

SCHEDULE II.

SCHEDULE III.

__________

The Central Goods and Services Tax

Act, 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 Central Government

and the matters connected therewith or

incidental thereto.

Be it enacted by Parliament in the Sixty-

eighth Year of the Republic of India as

follows:—

CHAPTER I

Preliminary

1. Short title, extent and commencement.—

(1) This Act may be called the Central Goods

and Services Tax Act, 2017.

(2) It extends to the whole of India except

the State of Jammu and Kashmir.

(3) It shall come into force on such date as

the Central 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. Definitions.— 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;

4 of 1882.

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688

(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 Central Board of

Excise and Customs, the 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

(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

constituted under 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

judgment 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 Government to collect the tax or any

other amount payable under this Act;

(15) “authorised representative” means

the representative as referred to in section

116;

(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, manu-

facture, 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);

43 of 1961.

54 of 1963.

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689

(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 to 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;

(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 a State or a Union territory where he

has no fixed place of business;

(21) “central tax” means the central

goods and services tax levied under

section 9;

(22) “cess” shall have the same meaning

as assigned to it in the Goods and Services

Tax (Compensation to States) Act:

(23) “chartered accountant”

means a chartered accountant as

defined in clause (h) of sub-

-section (1) of section 2 of the

Chartered Accountants Act, 1949;

(24)

“Commissioner”

means

the

Commissioner of central tax and includes

the Principal Commissioner of central tax

appointed under section 3 and the

Commissioner of integrated tax appointed

under the Integrated Goods and Services

Tax Act:

(25) “Commissioner in the Board” means

the Commissioner referred to in section 168;

(26) “common portal” means the

common goods and services tax electronic

portal referred to in section 146;

(27) “common working days” in respect

of a State or Union territory shall mean

such days in succession which are not

38 of 1949.

OFFICIAL GAZETTE — GOVT. OF GOA

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690

declared as gazetted holidays by the

Central Government or the concerned State

or Union territory Government;

(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;

Illustration.— Where goods are packed

and transported with insurance, he supply

of goods Nicking 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;

(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;

56 of 1980.

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(40) “designated authority” means

such authority as may be notified by the

Board;

(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;

(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 Parliament 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

(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 Central

Government;

(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;

(57) “Integrated Goods and Services Tax

Act” means the Integrated Goods and

Services Tax Act, 2017;

21 of 2000.

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(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;

(d) the tax payable under the

provisions of sub-sections (3) and (4) of

section 9 of the respective State Goods

and Services Tax Act; or

(e) the tax payable under the

provisions of sub-sections (3) and (4) of

section 7 of the Union Territory 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;

(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;

41 of 2006.

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or

(g) a Regional Council constituted

under article 371 A 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;

(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;

(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

recognised 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,

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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;

(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;

(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;

18 of 2013.

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(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 central tax who is assigned that

function by the Commissioner in the Board;

(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;

(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 Board 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;

(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” includes a Union territory

with Legislature;

(104) “State tax” means the tax levied

under any State Goods and Services Tax

Act;

(105) “supplier” in relation to any goods

or services or both, shall mean the person

42 of 1956.

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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;

(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 State Goods and Services Tax

Act” means the respective State 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;

(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 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;

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(120) words and expressions used and

not defined in this Act but defined in the

Integrated 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 meaning as assigned to them in

those Acts;

(121) any reference in this Act to a law

which is not in force in the State of Jammu

and Kashmir, shall, in relation to that State

be construed as a reference to the

corresponding law, if any, in force in that

State.

CHAPTER II

Administration

3. Officers under this Act.— The

Government shall, by notification, appoint the

following classes of officers for the purposes

of this Act, namely:-—

(a) Principal Chief Commissioners of

Central Tax or Principal Directors General

of Central Tax,

(b) Chief Commissioners of Central Tax

or Directors General of Central Tax,

(c) Principal Commissioners of Central

Tax or Principal Additional Directors

General of Central Tax,

(d) Commissioners of Central Tax or

Additional Directors General of Central Tax,

Officers under this Act.

(e) Additional Commissioners of Central

Tax or Additional Directors of Central Tax,

(j) Joint Commissioners of Central Tax

or Joint Directors of Central Tax,

(g) Deputy Commissioners of Central Tax

or Deputy Directors of Central Tax,

(h) Assistant Commissioners of Central

Tax or Assistant Directors of Central Tax,

and

(i) any other class of officers as it may

deem fit:

Provided

that

the

officers

appointed under the Central Excise

Act, 1944 shall be deemed to be the

officers appointed under the

provisions of this Act.

4. Appointment of officers.— (1) The Board

may, in addition to the officers as may be

notified by the Government under section 3,

appoint such persons as it may think fit to be

the officers under this Act.

(2) Without prejudice to the provisions of

sub-section (1), the Board may, by order,

authorise any officer referred to in clauses

(a) to (h) of section 3 to appoint officers of

central tax below the rank of Assistant

Commissioner of central tax for the

administration of this Act.

5. Powers of officers.— (1) Subject to such

conditions and limitations as the Board may

impose, an officer of central tax may exercise

the powers and discharge the duties

conferred or imposed on him under this

Act.

(2) An officer of central tax may exercise

the powers and discharge the duties

conferred or imposed under this Act on any

other officer of central 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

central tax.

6. Authorisation of officers of State tax or

Union territory tax as proper officer in certain

circumstances.— (1) Without prejudice to the

provisions of this Act, the officers appointed

under the State Goods and Services Tax Act

or the Union Territory 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.

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(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 State Goods and

Services Tax Act or the Union Territory

Goods and Services Tax Act, as authorised

by the State Goods and Services Tax Act

or the Union Territory Goods and Services

Tax Act, as the case may be, under

intimation to the jurisdictional officer of

State tax or Union territory tax;

(b) where a proper officer under the

State Goods and Services Tax Act or the

Union Territory 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 State Goods and

Services Tax Act or the Union Territory Goods

and Services Tax Act.

CHAPTER III

Levy and Collection of Tax

7. Scope of supply.— (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, licence, 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;

(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. Tax liability on composite and mixed

supplies.— 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

(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. Levy and collection.— (1) Subject to the

provisions of sub-section (2), there shall be

levied a tax called the central 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.

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(2) The central 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 central 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.

(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. Composition levy.— (1) Notwith-

standing 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

or turnover in Union territory in case of a

manufacturer,

(b) two and a half per cent. of the

turnover in State or turnover in Union

territory in case of persons engaged in

making supplies referred to in clause (b)

of paragraph 6 of Schedule 11, and

(c) half per cent, of the turnover in State

or turnover in Union territory in case of

other suppliers,

subject to such conditions and restrictions

as may be prescribed:

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

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Government on the recommendations of

the Council:

Provided that where more than

one registered persons 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.

(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. Power to grant exemption from tax.—

(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.

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 liveable 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. Time of supply of goods.— (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.

43 of 1961.

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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.

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

(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. Time of supply of services.— (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 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

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;

(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.

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(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.

(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. Change in rate of tax in respect of

supply of goods or services.— Notwith-

standing 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;

(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:

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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. Value of taxable supply.— (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 State

Goods and Services Tax Act, the Union

Territory Goods and 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

(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;

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(iv) any person directly or indirectly

owns, controls or holds twenty-five

percent. 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;

(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. Eligibility and conditions for taking

input tax credit.— (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;

(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.

43 of 1961.

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(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.

17. Apportionment of credit and blocked

credits.— (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 11, 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.

(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

(B) such inward supply of goods or

services or both of a particular

category is used by a registered

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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 or

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

(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. Availability of credit in special

circumstances.— (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;

(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

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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, de merger, 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.

(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. Taking input tax credit in respect of

inputs and capital goods sent for job work.—

(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.

(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.

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(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:

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. Manner of distribution of credit by

Input Service Distributor.— (1) The Input

Service Distributor shall distribute the credit

of central tax as central tax or integrated tax

and integrated tax as integrated tax or central

tax, by way of issue of a 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 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

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value of turnover, reduced by the amount

of any duty or tax levied under entry 84 of

List I of the Seventh Schedule to the

Constitution and entries 51 and 54 of List

11 of the said Schedule.

21. Manner of recovery of credit distributed

in excess.— 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. Persons liable for registration.— (1)

Every supplier shall be liable to be registered

under this Act in the State or Union territory,

other than special category States, from

where he makes a taxable supply of goods

or services or both, 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.

(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, demerger 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. Persons not liable for registration.— (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.

(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.Compulsory registration in certain

cases.— Notwithstanding anything contained

in sub-section (1) of section 22, the following

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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) person 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;

(xi) every person supplying online

information and database 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. Procedure for registration.— (1) Every

person who is liable to be registered under

section 22 or section 24 shall apply for

registration in every such State or Union

territory in which he is so liable 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 coastal State

or Union territory where the nearest point of

the appropriate baseline is located.

(2) A person seeking registration under this

Act shall be granted a single registration in

a State or Union territory:

Provided that a person having multiple

business verticals in a State or Union territory

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.

(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.

43 of 1961.

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(7) Notwithstanding anything contained in

sub-section (6), a non-resident taxable person

may be granted registration under sub-

section (l) 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,

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. Deemed registration.— (1) The grant of

registration or the Unique Identity Number

under the State Goods and Services Tax Act

or the Union Territory 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 State Goods and

Services Tax Act or the Union Territory Goods

and Services Tax Act shall be deemed to be

a rejection of application for registration

under this Act.

27. Special provisions relating to casual

taxable person and non-resident taxable

person.— (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:

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

46 of 1947.

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cash ledger of such person and shall be

utilised in the manner provided under section

49.

28. Amendment of registration.— (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.

(3)

Any

rejection

or

approval

of

amendments under the State Goods and

Services Tax Act or the Union Territory Goods

and Services Tax Act, as the case may be,

shall be deemed to be a rejection or approval

under this Act.

29. Cancellation of registration,— (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 there under 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

(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 State Goods and Services Tax Act or the

Union Territory Goods and Services Tax Act,

as the case may be, shall be deemed to be a

cancellation of registration under this Act.

(5) Every registered person whose

registration is cancelled shall pay an amount,

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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.

30.

Revocation

of

cancellation

of

registration.— (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 State Goods and

Services Tax Act or the Union Territory Goods

and Services Tax Act, as the case may

be, shall be deemed to be a revocation

of cancellation of registration under this

Act.

CHAPTER VII

Tax Invoice, Credit and Debit Notes

31. Tax invoice.— (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.

(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;

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(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:

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;

(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. Prohibition of unauthorised collection

of tax.— (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.

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33. Amount of tax to be indicated in tax

invoice and other documents.— Notwith-

standing 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.

34. Credit and debit notes.— (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.

Explanation.— For the purposes of this

Act, the expression “debit note” shall include

a supplementary invoice.

CHAPTER VIII

Accounts and Records

35. Accounts and other records.— (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

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accounts or documents for such purpose as

may be specified therein.

(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

section 74, as the case may be, shall, mutatis

mutandis, apply for determination of such

tax.

36. Period of retention of accounts.— 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

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.

Furnishing details of outward

supplies.— (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 State

tax or Commissioner of Union territory 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 section 38, shall

either accept or reject the details so

communicated, on or before the seventeenth

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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. Furnishing details of inward supplies.—

(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.

(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 State

tax or Commissioner of Union territory 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,

51 of 1975.

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shall, upon discovery of any error or 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. Furnishing for returns.— (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 or

Union territory, 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.

(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 State tax or

Union territory 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 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

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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. First return.— 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. Claim of input tax credit and provisional

acceptance thereof.— (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. Matching, reversal and reclaim of input

tax credit.— (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—

(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 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

51 of 1975.

51 of 1975.

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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.

43. Matching, reversal and reclaim of

reduction in output tax liability.— (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.

(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.

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(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. Annual return.— (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 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. Final return.— 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. Notice to return defaulters.— 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. Levy of late fee.— (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 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

or Union territory.

48. Goods and services tax practitioners.—

(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

Payment of Tax

49. Payment of tax, interest, penalty and

other amounts.— (1) Every deposit made

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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.

(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 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 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.

(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;

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(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.

50. Interest on delayed payment of tax.—

(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. Tax deduction at source.— (1)

Notwithstanding anything to the contrary

contained in this Act, the Government Tax

deduction 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:

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, Union

territory 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 days

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

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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.

(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. Collection of tax at source.— (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.

(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 collected and

reflected in the statement of the operator

furnished under sub-section (4), in such

manner as may be prescribed.

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(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—

(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. Transfer of input tax credit.— 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 central

tax shall stand reduced by an amount equal

to such credit so utilised and the Central

Government shall transfer an amount equal

to the amount so reduced from the central

tax account to the integrated tax account in

such manner and within such time as may

be prescribed.

CHAPTER XI

Refunds

54. Refund of tax.— (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

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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 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 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 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 un-

utilised 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 avails of

drawback in respect of central tax or

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.

(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

46 of 1947.

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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) with in 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

(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) with hold 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.

(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

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(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

(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;

(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. Refund in certain cases.— The

Government

may,

on

the

recommendations of the Council, by

notification, specify 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

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. Interest on delayed refunds.— 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

46 of 1947.

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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 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. Consumer Welfare Fund.— 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. Utilisation of Fund.— (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. Self-assessment.— 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.

60. Provisional assessment.— (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

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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 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. Scrutiny of returns.— (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. Assessment of non-filers of returns.—

(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

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. Assessment of unregistered persons.—

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 judgment 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. Summary assessment in certain special

cases.— (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

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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 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. Audit by tax authorities.— (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 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. Special audit.— (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:

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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. Power of inspection, search and

seizure.— (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 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 authorised in writing any other officer

of central 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 central 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.

(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.

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(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, 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.

(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.

68. Inspection of goods in movement.— (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.

2 of 1974.

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(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. Power to arrest.— (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 (ii) of

sub-section (1), or sub-section (2) of the said

section, he may, by order, authorise any

officer of central 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;

(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. Power to summon persons to

give

evidence

and

produce

documents.— (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. Access to business premises.— (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;

(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

2 of 1974.

5 of 1908.

45 of 1860.

18 of 2013.

42 of 1961.

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(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. Officers to assist proper officers.— (1)

All officers of Police, Railways, Customs, and

those officers engaged in the collection of

land revenue, including village officers,

officers of State tax and officers of 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. 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.— (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.

(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.

(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.

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(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. 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.— (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.

(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.

(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

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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.

Explanation 2.— For the purposes of this

Act, the expression “suppression” shall

mean

non-declaration

off

acts

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. General provisions relating to

determination of tax.— (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:

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

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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 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. Tax collected but not paid to

Government.— (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.

(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

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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.

77. Tax wrongfully collected and paid to

Central Government or State Government.—

(1) A registered person who has paid the

Central tax and State tax or, as the case may

be, the Central tax and the Union territory

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 central tax and

State tax or, as the case may be, the Central

tax and the Union territory tax payable.

78. Initiation of recovery proceedings.—

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. Recovery of tax.— (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;

(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

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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 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;

(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

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Government under any of the provisions of

this Act or the rules made thereunder and

which remains unpaid, the proper officer of

State tax or Union territory 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 State tax or Union

territory 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.

80. Payment of tax and other amount in

instalments.— 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. Transfer of property to be void in certain

cases.— 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. Tax to be first charge on

property.—

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.

83. Provisional attachment to protect

revenue in certain cases.— (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. Continuation and validation of certain

recovery proceedings.— 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—

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(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;

(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. Liability in case of transfer of

business.— (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. Liability of agent and principal.—

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.

87. Liability in case of amalgamation or

merger of companies.— (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. Liability in case of company in

liquidation.— (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

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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

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. Liability of directors of private

company.— (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. Liability of partners of firm to pay

tax.— 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:

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 up to 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. Liability of guardians, trustees, etc.—

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

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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. Liability of Court of Wards, etc.— 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 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. Special provisions regarding

liability to pay tax, interest or

penalty in certain cases.— (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 due

from the taxable person under this

Act up to 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 up to

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,

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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. Liability other cases.— (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 up to the date of such

discontinuance may be determined as if

no such discontinuance had taken place;

and

(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.

CHAPTER XVII

Advance Ruling

95. Definitions.— 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

referred to in 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 referred to in section 96.

96. Authority for advance ruling.— Subject

to the provisions of this Chapter, for the

purposes of this Act, the Authority for

advance ruling constituted under the

provisions of a State Goods and Services Tax

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Act or Union Territory Goods and Services

Tax Act shall be deemed to be the Authority

for advance ruling in respect of that State or

Union territory.

97. Application for advance ruling.— (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. Procedure on receipt of application.—

(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.

(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.

(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. Appellate Authority for Advance

Ruling.— Subject to the provisions of this

Chapter, for the purposes of this Act, the

Appellate Authority for Advance Ruling

constituted under the provisions of a State

Goods and Services Tax Act or a Union

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Territory Goods and Services Tax Act shall

be deemed to be the Appellate Authority in

respect of that State or Union territory.

100. Appeal to Appellate Authority.— (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.

101. Orders of Appellate Authority.— (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. Rectification of advance ruling— 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, 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.

103. Applicability of advance ruling.— (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. Advance ruling to be void in certain

circumstances.— (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

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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.

105. Powers of Authority and Appellate

Authority.— (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. Procedure of Authority and Appellate

Authority.— 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. Appeals to Appellate Authority.— (1)

Any person aggrieved by any decision or

order passed under this Act or the State

Goods and Services Tax Act or the Union

Territory 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

State

tax

or

the

Commissioner of Union territory tax, call for

and examine the record of any proceedings

in which an adjudicating authority has

passed any decision or order under this Act

or the State Goods and Services Tax Act or

the Union Territory 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 of 1908.

2 of 1974.

45 of 1860.

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(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.

(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 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

jurisdictional Commissioner or the authority

designated by him in this behalf and the

jurisdictional Commissioner of State tax or

Commissioner of Union Territory 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. Powers of Revisional Authority.— (1)

Subject to the provisions of section 121 and

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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 State tax, or the

Commissioner of Union territory tax, call for

and examine the record of any proceedings,

and if he considers that any decision or order

passed under this Act or under the State

Goods and Services Tax Act or the Union

Territory 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.

(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. Constitution of Appellate Tribunal and

Benches thereof.— (1) The Government shall,

on the recommendations of the Council, by

notification, constitute with effect from such

date as may be specified therein, an

Appellate Tribunal known as the Goods and

Services Tax Appellate Tribunal for hearing

appeals against the orders passed by the

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Appellate Authority or the Revisional

Authority.

(2) The powers of the Appellate Tribunal

shall be exercisable by the National Bench

and Benches thereof (hereinafter in this

Chapter referred to as “Regional Benches”),

State Bench and Benches thereof (hereafter

in this Chapter referred to as “Area

Benches”).

(3) The National Bench of the Appellate

Tribunal shall be situated at New Delhi which

shall be presided over by the President and

shall consist of one Technical Member

(Centre) and one Technical Member (State).

(4) The Government shall, on the

recommendations of the Council, by

notification, constitute such number of

Regional Benches as may be required and

such Regional Benches shall consist of a

Judicial Member, one Technical Member

(Centre) and one Technical Member (State).

(5) The National Bench or Regional

Benches of the Appellate Tribunal shall have

jurisdiction to hear appeals against the orders

passed by the Appellate Authority or the

Revisional Authority in the cases where one

of the issues involved relates to the place of

supply.

(6) The Government shall, by notification,

specify for each State or Union territory, a

Bench of the Appellate Tribunal (hereafter in

this Chapter, referred to as “State Bench”)

for exercising the powers of the Appellate

Tribunal within the concerned State or Union

territory:

Provided that the Government shall, on

receipt of a request from any State

Government, constitute such number of Area

Benches in that State, as may be

recommended by the Council:

Provided further that the Government may,

on receipt of a request from any State, or on

its own motion for a Union territory, notify

the Appellate Tribunal in a State to act as

the Appellate Tribunal for any other State or

Union territory, as may be recommended by

the Council, subject to such terms and

conditions as may be prescribed.

(7) The State Bench or Area Benches shall

have jurisdiction to hear appeals against the

orders passed by the Appellate Authority or

the Revisional Authority in the cases

involving matters other than those referred

to in sub-section (5).

(8) The President and the State President

shall, by general or special order, distribute

the business or transfer cases among

Regional Benches or, as the case may be,

Area Benches in a State.

(9) Each State Bench and Area Benches of

the Appellate Tribunal shall consist of a

Judicial Member, one Technical Member

(Centre) and one Technical Member (State)

and the State Government may designate the

senior most Judicial Member in a State as

the State President.

(10) In the absence of a Member in any

Bench due to vacancy or otherwise, any

appeal may, with the approval of the

President or, as the case may be, the State

President, be heard by a Bench of two

Members:

Provided that any 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 in any order

appealed against, does not exceed five lakh

rupees and which does not involve any

question of law may, with the approval of

the President and subject to such

conditions as may be prescribed on the

recommendations of the Council, be heard

by a bench consisting of a single member.

(11) If the Members of the National Bench,

Regional Benches, State Bench or Area

Benches differ in opinion on any point or

points, it shall be decided according to the

opinion of the majority, if there is a majority,

but if the Members are equally divided, they

shall state the point or points on which they

differ, and the case shall be referred by the

President or as the case may be, State

President for hearing on such point or points

to one or more of the other Members of the

National Bench, Regional Benches, State

Bench or Area Benches and such point or

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points shall be decided according to the

opinion of the majority of Members who have

heard the case, including those who first

heard it.

(12) The Government, in consultation with

the President may, for the administrative

convenience, transfer—

(a) any Judicial Member or a Member

Technical (State) from one Bench to

another Bench, whether National or

Regional; or

(b) any Member Technical (Centre) from

one Bench to another Bench, whether

National, Regional, State or Area.

(13) The State Government, in consultation

with the State President may, for the

administrative convenience, transfer a

Judicial Member or a Member Technical

(State) from one Bench to another Bench

within the State.

(14) No act or proceedings of the Appellate

Tribunal shall be questioned or shall be

invalid merely on the ground of the existence

of any vacancy or defect in the constitution

of the Appellate Tribunal.

110. President and Members of Appellate

Tribunal, their qualification, appointment,

conditions of service, etc.— (1) A person shall

not be qualified for appointment as—

(a) the President, unless he has been a

Judge of the Supreme Court or is or has

been the Chief Justice of a High Court, or

is or has been a Judge of a High Court for

a period not less than five years;

(b) a Judicial Member, unless he—

(i) has been a Judge of the High Court;

or

(ii) is or has been a District Judge

qualified to be appointed as a Judge of

a High Court; or

(iii) is or has been a Member of Indian

Legal Service and has held a post not

less than Additional Secretary for three

years;

(c) a Technical Member (Centre)

unless he is or has been a member of

Indian Revenue (Customs and Central

Excise) Service, Group A, and has

completed at least fifteen years of

service in Group A;

(d) a Technical Member (State) unless

he is or has been an officer of the State

Government not below the rank of

Additional Commissioner of Value Added

Tax or the State Goods and Services Tax

or such rank as may be notified by the

concerned State Government on the

recommendations of the Council with at

least three years of experience in the

administration of an existing law or the

State Goods and Services Tax Act or in

the field of finance and taxation.

(2) The President and the Judicial

Members of the National Bench and the

Regional Benches shall be appointed by the

Government after consultation with the Chief

Justice of India or his nominee:

Provided that in the event of the occurrence

of any vacancy in the office of the President

by reason of his death, resignation or

otherwise, the senior most Member of the

National Bench shall act as the President until

the date on which a new President, appointed

in accordance with the provisions of this

Act to fill such vacancy, enters upon his

office:

Provided further that where the President

is unable to discharge his functions owing to

absence, illness or any other cause, the senior

most Member of the National Bench shall

discharge the functions of the President until

the date on which the President resumes his

duties.

(3) The Technical Member (Centre) and

Technical Member (State) of the National

Bench and Regional Benches shall be

appointed by the Government on the

recommendations of a Selection Committee

consisting of such persons and in such

manner as may be prescribed.

(4) The Judicial Member of the State Bench

or Area Benches shall be appointed by the

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State Government after consultation with the

Chief Justice of the High Court of the State

or his nominee.

(5) The Technical Member (Centre) of the

State Bench or Area Benches shall be

appointed by the Central Government and

Technical Member (State) of the State Bench

or Area Benches shall be appointed by the

State Government in such manner as may

be prescribed.

(6) No appointment of the Members of the

Appellate Tribunal shall be invalid merely by

the reason of any vacancy or defect in the

constitution of the Selection Committee.

(7) Before appointing any person as the

President or Members of the Appellate

Tribunal, the Central Government or, as the

case may be, the State Government, shall

satisfy itself that such person does not have

any financial or other interests which are

likely to prejudicially affect his functions as

such President or Member.

(8) The salary, allowances and other terms

and conditions of service of the President,

State President and the Members of the

Appellate Tribunal shall be such as may be

prescribed:

Provided

that

neither

salary

and

allowances nor other terms and conditions

of service of the President, State President or

Members of the Appellate Tribunal shall be

varied to their disadvantage after their

appointment.

(9) The President of the Appellate Tribunal

shall hold office for a term of three years from

the date on which he enters upon his office,

or until he attains the age of seventy years,

whichever is earlier and shall be eligible for

reappointment.

(10) The Judicial Member of the Appellate

Tribunal and the State President shall hold

office for a term of three years from the date

on which he enters upon his office, or until

he attains the age of sixty-five years,

whichever is earlier and shall be eligible for

reappointment.

(11) The Technical Member (Centre) or

Technical Member (State) of the Appellate

Tribunal shall hold office for a term of five

years from the date on which he enters upon

his office, or until he attains the age of sixty-

five years, whichever is earlier and shall be

eligible for reappointment.

(12) The President, State President or any

Member may, by notice in writing under his

hand addressed to the Central Government

or, as the case may be, the State Government

resign from his office:

‘

Provided that the President, State President

or Member shall continue to hold office until

the expiry of three months from the date of

receipt of such notice by the Central

Government, or, as the case may be, the State

Government or until a person duly appointed

as his successor enters upon his office or

until the expiry of his term of office, whichever

is the earliest.

(13) The Central Government may, after

consultation with the Chief Justice of India,

in case of the President, Judicial Members

and Technical Members of the National

Bench, Regional Benches or Technical

Members (Centre) of the State Bench or Area

Benches, and the State Government may,

after consultation with the Chief Justice of

High Court, in case of the State President,

Judicial Members, Technical Members (State)

of the State Bench or Area Benches, may

remove from the office such President or

Member, who—

(a) has been adjudged an insolvent; or

(b) has been convicted of an offence

which, in the opinion of such Government

involves moral turpitude; or

(c) has become physically or mentally

incapable of acting as such President, State

President or Member; or

(d) has acquired such financial or other

interest as is likely to affect prejudicially

his functions as such President, State

President or Member; or

(e) has so abused his position as to

render his continuance in office prejudicial

to the public interest:

Provided that the President, State President

or the Member shall not be removed on any

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of the grounds specified in clauses (d) and

(e), unless he has been informed of the

charges against him and has been given an

opportunity of being heard.

(14) Without prejudice to the provisions of

sub-section (13),—

(a) the President or a Judicial and

Technical Member of the National Bench

or Regional Benches, Technical Member

(Centre) of the State Bench or Area

Benches shall not be removed from their

office except by an order made by the

Central Government on the ground of

proved misbehaviour or incapacity after an

inquiry made by a Judge of the Supreme

Court nominated by the Chief Justice of

India on a reference made to him by the

Central Government and of which the

President or the said Member had been

given an opportunity of being heard;

(b) the Judicial Member or Technical

Member (State) of the State Bench or Area

Benches shall not be removed from their

office except by an order made by the State

Government on the ground of proved

misbehaviour or incapacity after an inquiry

made by a Judge of the concerned High

Court nominated by the Chief Justice of

the concerned High Court on a reference

made to him by the State Government and

of which the said Member had been given

an opportunity of being heard.

(15) The Central Government, with the

concurrence of the Chief Justice of India, may

suspend from office, the President or a

Judicial or Technical Members of the National

Bench or the Regional Benches or the

Technical Member (Centre) of the State Bench

or Area Benches in respect of whom a

reference has been made to the Judge of the

Supreme Court under sub-section (14).

(16) The State Government, with the

concurrence of the Chief Justice of the High

Court, may suspend from office, a Judicial

Member or Technical Member (State) of the

State Bench or Area Benches in respect of

whom a reference has been made to the

Judge of the High Court under sub-section

(14).

(17) Subject to the provisions of article 220

of the Constitution, the President, State

President or other Members, on ceasing to

hold their office, shall not be eligible to appear,

act or plead before the National Bench and

the Regional Benches or the State Bench and

the Area Benches thereof where he was

the President or, as the case may be, a

Member.

111. Procedure before Appellate

Tribunal.— (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;

(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 ex parte; and

5 of 1908.

5 of 1908.

1 of 1872.

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(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. Appeals to Appellate Tribunal.— (1)

Any person aggrieved by an order passed

against him under section 107 or section 108

of this Act or the State Goods and Services

Tax Act or the Union Territory 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.

(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 State tax or Commissioner

of Union territory tax, call for and examine

the record of any order passed by the

Appellate Authority or the Revisional

Authority under this Act or the State Goods

and Services Tax Act or the Union Territory

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).

(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—

2 of 1974.

45 of 1860.

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(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.

113. Orders of Appellate Tribunal.— (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

State tax or the Commissioner of the Union

territory 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 adjudicating

authority, as the case may be, the appellant

and the jurisdictional Commissioner or the

Commissioner of State tax or the Union

territory 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. Financial and administrative powers

of President.— The President shall exercise

such financial and administrative powers over

the National Bench and Regional Benches of

the Appellate Tribunal as may be prescribed:

Provided that the 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

National Bench and Regional 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

President.

115. Interest on refund of amount paid for

admission of appeal.— Where an amount

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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.

Appearance

by

authorised

representative.— (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

(b) an advocate who is entitled to

practice in any court in India, and who

has not been debarred from practicing

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 State 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;

(d) who has been adjudged as an

insolvent,

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 State Goods and

Services Tax Act or the Union Territory Goods

and Services Tax Act shall be deemed to be

disqualified under this Act.

117. Appeal to High Court.— (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

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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:

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.

118. Appeal to Supreme Court.— (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. Sums due to be paid notwithstanding

appeal, etc.— 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

5 of 1908.

5 of 1908.

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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. Appeal not to be filed in certain

cases.— (1) The Board may, on the

recommendations of the Council, from time

to time, issue orders or instructions or

directions fixing such monetary limits, as it

may deem fit, for the purposes of regulating

the filing of appeal or application by the officer

of the central tax under the provisions of this

Chapter.

(2) Where, in pursuance of the orders or

instructions or directions issued under sub-

-section (1), the officer of the central 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 central 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 central 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 central 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

central tax in pursuance of the orders or

instructions or directions issued under sub-

section (1).

121.

Non-appealable

decisions

and

orders.— 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 central tax if

such decision taken or order passed relates

to anyone 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.

CHAPTER XIX

Offences and Penalties

122. Penalty for certain offences.— (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

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collected as tax under sub-section (3) of

section 52;

(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;

(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 document;

(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 utilised,—

(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 often 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.

(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

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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

central 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. Penalty for failure to furnish

information return.— 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.

124. Fine for failure to furnish statistics.—

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. General penalty.— 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. General disciplines related to penalty.—

(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 be commensurate with

the degree and severity of the breach.

(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.

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127. Power to impose penalty in certain

cases.— 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. Power to waive penalty or fee or

both.— 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. Detention, seizure and release of

goods and conveyances in transit.— (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 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).

(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. Confiscation of goods or conveyances

and levy of penalty.— (1) Notwithstanding

anything contained in this Act, if any

person—

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(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 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.

(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. Confiscation or penalty not

to

interfere

with

other

punishments.— 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. Punishment for certain offences.— (1)

Whoever commits any of the following

offences, namely:—

2 of 1974.

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(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);

(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,

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:

(i) receives or is in any way concerns

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,

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

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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.

(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 State Goods and Services Tax Act,

the Integrated Goods and Services Tax Act

or the Union Territory Goods and Services

Tax Act and cess levied under the Goods and

Services Tax (Compensation to States) Act.

133. Liability of officers and certain other

persons.— (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

central 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.

(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. Cognizance of offences.— 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. Presumption of culpable mental

state.— 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. Relevancy of statements under certain

circumstances.— 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

2 of 1974.

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or 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. Offences by companies.— (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 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. Compounding of offences.— (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 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 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

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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.

CHAPTER XX

Transitional Provisions

139. Migration of existing tax payers.— (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. Transitional arrangements for input

tax credit.— (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, the amount of CENVAT credit

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

(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; or

(iii) where the said amount of credit

relates to goods manufactured and cleared

under such exemption notifications as are

notified by the Government.

(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 CENVAT 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:

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Provided that the registered person shall

not be allowed to take credit unless the said

credit was admissible as CENVAT credit

under the existing law and is also admissible

as input tax credit under this Act.

Explanation.— For the purposes of this

sub-section, the expression “unavailed

CENVAT credit” means the amount that

remains after subtracting the amount of

CENVAT credit already availed in respect of

capital goods by the taxable person under

the existing law from the aggregate amount

of CENVAT credit to which the said person

was entitled in respect of the said capital

goods under the existing law.

(3) A registered person, who was not liable

to be registered under the existing law, or

who was engaged in the manufacture of

exempted goods or provision of exempted

services, or who was providing works

contract service and was availing of the

benefit of notification No. 26/2012-Service Tax,

dated the 20th June, 2012 or a first stage

dealer or a second stage dealer or a

registered importer or a depot of a

manufacturer, shall be entitled to take, in his

electronic credit ledger, credit of eligible

duties 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 duty

under the existing law in respect of such

inputs;

(iv) such invoices or other prescribed

documents were issued not earlier than

twelve months immediately preceding the

appointed day; and

(v) the supplier of services is not eligible

for any abatement under this Act:

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

duty 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.

(4) A registered person, who was

engaged in the manufacture of

taxable as well as exempted goods

under the Central Excise Act, 1944

or provision of taxable as well as

exempted services under Chapter

V of the Finance Act, 1994, but

which are liable to tax under this

Act, shall be entitled to take, in his

electronic credit ledger,—

(a) the amount of CENVAT credit 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 CENVAT credit of

eligible duties 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 services, 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

eligible duties and taxes in respect of inputs

or input services received on or after the

appointed day but the duty or 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 duty or 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:

1 of 1944.

32 of 1994.

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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 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 eligible

duties 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 duty

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) Notwithstanding anything to the

contrary contained in this Act, the input tax

credit on account of any services received

prior to the appointed day by an Input

Service Distributor shall be eligible for

distribution as credit under this Act even if

the invoices relating to such services are

received on or after the appointed day.

(8) Where a registered person having

centralised registration under the existing

law has obtained a registration under this

Act, such person shall be allowed to take, in

his electronic credit ledger, credit of the

amount of CENVAT credit carried forward in

a return, furnished under the existing law

by him, in respect of the period ending with

the day immediately preceding the appointed

day in such manner as may be prescribed:

Provided that if the registered person

furnishes his return for the period ending

with the day immediately preceding the

appointed day within three months of the

appointed day, such credit shall be allowed

subject to the condition that the said return

is either an original return or a revised return

where the credit has been reduced from that

claimed earlier:

Provided further that the registered person

shall not be allowed to take credit unless the

said amount is admissible as input tax credit

under this Act:

Provided also that such credit may be

transferred to any of the registered persons

having the same Permanent Account Number

for which the centralised registration was

obtained under the existing law.

(9) Where any CENVAT credit availed for

the input services provided under the

existing law has been reversed due to non-

payment of the consideration within a period

of three months, such credit can be reclaimed

subject to the condition that the registered

person has made the payment of the

consideration for that supply of services

within a period of three months from the

appointed day.

(10) The amount of credit under sub-

-sections (3), (4) and (6) shall be calculated

in such manner as may be prescribed.

Explanation 1.— For the purposes of

sub-sections (3), (4) and (6), the expression

“eligible duties” means—

(i) the additional duty of excise

leviable under section 3 of the

Additional Duties of Excise

(Goods of Special Importance)

Act, 1957;

58 of 1957.

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(ii) the additional duty leviable

under sub-section (1) of section

3 of the Customs Tariff Act, 1975;

(iii) the additional duty leviable

under sub-section (5) of section

3 of the Customs Tarrif Act, 1975;

(iv) the additional duty of

excise leviable under section 3 of

the Additional Duties of Excise

(Textile and Textile Articles) Act,

1978;

(v) the duty of excise specified

in the First Schedule to the

Central Excise Tariff Act, 1985;

(vi) the duty of excise specified

in the Second Schedule to the

Central Excise Tariff Act, 1985;

and

(vii) the National Calamity

Contingent Duty leviable under

section 136 of the Finance Act,

2001,

in respect of inputs held in stock and inputs

contained in semi-finished or finished

goods held in stock on the appointed

day.

Explanation 2.— For the purposes of sub-

-section (5), the expression “eligible duties

and taxes” means—

(i) the additional duty of excise

leviable under section 3 of the

Additional Duties of Excise

(Goods of Special Importance)

Act, 1957;

(ii) the additional duty leviable

under sub-section (1) of section

3 of the Customs Tariff Act, 1975;

(iii) the additional duty leviable

under sub-section (5) of section

3 of the Customs Tariff Act, 1975;

(iv) the additional duty of

excise leviable under section 3 of

the Additional Duties of Excise

(Textile and Textile Articles) Act,

1978;

(v) the duty of excise specified

in the First Schedule to the

Central Excise Tariff Act, 1985;

(vi) the duty of excise specified

in the Second Schedule to the

Central Excise Tariff Act, 1985;

(vii) the National Calamity

Contingent Duty leviable under

section 136 of the Finance Act,

2001; and

(viii) the service tax leviable

under section 66B of the Finance

Act, 1994,

in respect of inputs and input services

received on or after the appointed day.

141. Transitional provisions relating to job

work.— (1) Where any inputs received at a

place of business had been removed as such

or removed 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:

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 removed 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 section referred to as “the said goods”)

51 of 1975.

51 of 1975.

40 of 1978.

5 of 1986.

5 of 1986.

14 of 2001.

58 of 1957.

51 of 1975.

40 of 1978.

51 of 1975.

5 of 1986.

5 of 1986.

14 of 2001.

32 of 1994.

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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 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 manufacturer 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.

(3)

Where

any

excisable

goods

manufactured at a place of business had been

removed without payment of duty for

carrying out tests or any other process not

amounting to manufacture, 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 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

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 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 manufacturer 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

manufacturer and the job worker declare the

details of the inputs or goods held in stock

by the job worker on behalf of the

manufacturer on the appointed day in such

form and manner and within such time as

may be prescribed.

142. Miscellaneous transitional pro-

visions.— (1) Where any goods on which

duty, if any, had been paid under the existing

law at the time of removal thereof, not being

earlier than six months prior to the appointed

day, are returned to any place of business on

or after the appointed day, the registered

person shall be eligible for refund of the duty

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 or services or both is

revised upwards on or after the appointed

day, the registered person who had removed

or provided such goods or services or both

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

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price of any goods or services or both is

revised downwards on or after the appointed

day, the registered person who had removed

or provided such goods or services or both

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.

(3) Every claim for refund filed

by any person before on or after the

appointed day, for refund of any

amount of CENVAT credit, duty, 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 paid in cash,

notwithstanding anything to the

contrary contained under the

provisions of existing law other than

the provisions of sub-section (2) of

section 11B of the Central Excise

Act, 1944:

Provided that where any claim for refund

of CENVAT credit is fully or partially rejected,

the amount so rejected shall lapse:

Provided further that no refund shall be

allowed of any amount of CENVAT 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 duty or tax

paid under existing law in respect of the

goods or services 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 CENVAT credit is fully or partially rejected,

the amount so rejected shall lapse:

Provided further that no refund shall be

allowed of any amount of CENVAT credit

where the balance of the said amount as on

the appointed day has been carried forward

under this Act.

(5) Every claim filed by a person

after the appointed day for refund

of tax paid under the existing law

in respect of services not provided

shall be disposed of in accordance

with the provisions of existing law

and

any

amount

eventually

accruing to him shall be paid in

cash, notwithstanding anything to

the contrary contained under the

provisions of existing law other than

the provisions of sub-section (2) of

section 11B of the Central Excise

Act, 1944.

(6) (a) every proceeding of

appeal, review or reference relating

to a claim for CENVAT credit

initiated whether before, on or after

the appointed day under the

existing law shall be disposed of in

accordance with the provisions of

existing law, and any amount of

credit found to be admissible to the

claimant shall be refunded to him

in cash, notwithstanding anything

to the contrary contained under the

provisions of existing law other than

the ‘provisions of sub-section (2) of

section 11B of the Central Excise

Act, 1944 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 CENVAT 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, review or

reference relating to recovery of CENVAT

credit initiated whether before, on or after

the appointed day under the existing law

1 of 1944.

1 of 1944.

1 of 1944.

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shall be disposed of in accordance with the

provisions of existing law and if any amount

of credit becomes recoverable as a result of

such appeal, 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, review

or reference relating to any output duty or

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, review or reference, the same

shall, unless recovered under the existing

law, be recovered as an arrear of duty or 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,

review or reference relating to any

output duty or 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 any amount

found to be admissible to the

claimant shall be refunded to him

in cash, notwithstanding anything

to the contrary contained under the

provisions of existing law other than

the provisions of sub-section (2) of

section 11B of the Central Excise

Act, 1944 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, notwithstanding anything

to the contrary contained in the

said law other than the provisions

of sub-section (2) of section 11B of

the Central Excise Act, 1944 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 CENVAT 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 CENVAT credit is found to be

admissible to any taxable person,

the same shall be refunded to him

in cash under the existing law,

notwithstanding anything to the

contrary contained in the said law

other than the provisions of sub-

-section (2) of section 11B of the

Central Excise Act, 1944 and the

amount rejected, if any, shall not be

admissible as input tax credit under

this Act.

(10) Save as otherwise provided in this

Chapter, the goods or services or both

1 of 1944.

1 of 1944.

1 of 1944.

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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 Value Added Tax Act of the State;

(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 Value Added

Tax Act 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 a period specified in

this sub-section:

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

a 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 any law of a

State or Union territory relating to Value

Added Tax 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.

Explanation.— For the purposes

of this Chapter, the expressions

“capital goods”, “Central Value

Added Tax (CENVAT) credit”, “first

stage dealer”, “second stage

dealer”, or “manufacture” shall

have

the

same

meaning

as

respectively assigned to them in the

Central Excise Act, 1944 or the

rules made thereunder.

CHAPTER XXI

Miscellaneous

143. Job work procedure.— (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:

32 of 1994.

32 of 1994.

1 of 1944.

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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

(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.

144. Presumption as to documents in

certain cases.— 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.

145. Admissibility of micro films, facsimile

copies of documents and computer printouts

as

documents

and

evidence.—

(1)

Notwithstanding anything contained in any

other law for the time being in force,—

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(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,

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. Common Portal.— 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. Deemed exports.— 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. Special procedure for certain

processes.— 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. Goods and services tax compliance

rating.— (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.

150. Obligation to furnish information

return.— (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

43 of 1961.

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(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

(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 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.

2 of 1934.

36 of 2003.

16 of 1908.

18 of 2013.

59 of 1988.

30 of 2013.

42 of 1956.

22 of 1996.

2 of 1934.

18 of 2013.

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151. Power to collect statistics.— (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. Bar on disclosure of information.— (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.

(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. Taking assistance from an expert.—

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. Power to take samples.— 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. Burden of proof.— 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. Persons deemed to be public

servants.— All persons discharging

functions under this Act shall be

deemed to be public servants with

in the meaning of section 21 of the

Indian Penal Code.

157. Protection of action taken under this

Act.— (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.

(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. Disclosure of information by a public

servant.— (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

45 of 1860.

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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

(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 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 particulars to an officer of the

Government as may be necessary for the

purposes of any other law for the time being

in force; or

(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. Publication of information in respect

of persons in certain cases.— (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

1 of 1872.

45 of 1860.

49 of 1988.

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780

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

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. Assessment proceedings, etc., not to

be invalid on certain grounds.— (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. Rectification of errors apparent on the

face of record.— 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 State Goods and

Services Tax Act or an officer appointed

under the Union Territory 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:

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. Bar on jurisdiction of civil courts.—

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. Levy of fee.— 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.

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164. Power of Government to make rules.—

(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.

(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. Power to make regulations.— The

Board may, by notification, make regulations

consistent with this Act and the rules made

thereunder to carry out the provisions of this

Act.

166. Laying of rules, regulations and

notifications.— Every rule made by the

Government, every regulation made by the

Board 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 each House of Parliament, 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, both Houses agree in

making any modification in the rule or

regulation or in the notification, as the case

may be, or both Houses agree 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.

Delegation

of

powers.—

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. Power to issue instructions or

directions.— (1) The Board may, if it 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 central tax 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.

(2) The Commissioner specified in clause

(91) of section 2, sub-section (3) of section 5,

clause (b) of sub-section (9) of section 25,

sub-sections (3) and (4) of section 35, sub-

-section (1) of section 37, sub-section (2) of

section 38, sub-section (6) of section 39,

sub-section (5) of section 66, sub-section (1)

of section 143, sub-section (1) of section 151,

clause (l) of sub-section (3) of section 158

and section 167 shall mean a Commissioner

or Joint Secretary posted in the Board and

such Commissioner or Joint Secretary shall

exercise the powers specified in the said

sections with the approval of the Board.

169.

Service

of

notice

in

certain

circumstances.— (1) Any decision, order,

summons, notice or other communication

under this Act or the rules made thereunder

shall be served by anyone 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

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782

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 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. Rounding off of tax, etc.— 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. Anti-profiteering measure.— (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.

(3) The Authority referred to in sub-section

(2) shall exercise such powers and discharge

such functions as may be prescribed.

172. Removal of difficulties.— (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 each House of Parliament.

173. Amendment of Act 32 of 1994.— Save

as otherwise provided in this Act, Chapter V

of the Finance Act, 1994 shall be omitted.

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174. Repeal and saving.— (1)

Save as otherwise provided in this

Act, on and from the date of

commencement of this Act, the

Central Excise Act, 1944 (except as

respects goods included in entry 84

of the Union List of the Seventh

Schedule to the Constitution), the

Medicinal and Toilet Preparations

(Excise Duties) Act, 1955, the

Additional Duties of Excise (Goods

of Special Importance) Act, 1957,

the Additional Duties of Excise

(Textiles and Textile Articles) Act,

1978, and the Central Excise Tariff

Act, 1985 (hereafter referred to as

the repealed Acts) are hereby

repealed.

(2) The repeal of the said Acts

and the amendment of the Finance

Act, 1994 (hereafter referred to as

“such amendment” or “amended

Act”, as the case may be) to the

extent mentioned in the 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 Act 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 Act or repealed Acts

or orders under such repealed or amended

Acts:

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 duty, tax, surcharge, fine,

penalty, 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 Act 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

duty, 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;

(f) affect any proceedings including that

relating to an appeal, review or reference,

instituted before on, or after the appointed

day under the said amended Act or

repealed Acts and such proceedings shall

be continued under the said amended Act

or repealed Acts as if this Act had not

come into force and the said Acts had not

been amended or repealed.

(3) The mention of the particular

matters referred to in sub-sections

(1) and (2) shall not be held to

prejudice or affect the general

application of section 6 of the

General Clauses Act, 1897 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:

1 of 1944.

16 of 1955.

58 of 1957.

40 of 1978.

5 of 1986.

32 of 1994.

10 of 1897.

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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

(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.

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

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

20 of 1972.

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785

(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

remodelling 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

(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.

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.

———ttt———

Department of Revenue

___

Order

35/01/03/2018-RD/1029

In exercise of the powers conferred by

clause (a) of sub-section (1) of section 9 of the

Indian Stamp Act, 1899 (Central Act 2 of 1899),

read with section 21 of the General Clause Act,

1897 (10 of 1897), the Government of Goa

hereby amends the Government Order No. 35/

/4/2016-RD dated 30-3-2017, published in the

Official Gazette, Extraordinary, Series I No. 52

dated 30-3-2017 (hereinafter referred to as the

Principal Order) as follows, namely:—

In the Principal Order, in clause (iv), for the

word ‘gift’, the expression ‘gift/sale’ shall be

substituted.

OFFICIAL GAZETTE — GOVT. OF GOA

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This Order shall come into force with effect

from the date of its publication in the Official

Gazette.

By order and in the name of Governor

of Goa.

Sagun R. Velip, Under Secretary (Revenue-I).

Porvorim, 31st May, 2018.

www.goaprintingpress.gov.in

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