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Panaji, 23rd November, 2018 (Agrahayana 2, 1940)

SERIES I No. 34

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]

GOVERNMENT OF GOA

Department of Law & Judiciary

Legal Affairs Division

Notification

8/3/2018-LA

The Goa Goods and Services Tax

(Amendment) Ordinance, 2018 (Ordinance

No. 3 of 2018), which has been promulgated

by the Governor of Goa on 20-11-2018, is

hereby published for general information of the

public.

Sharad G. Marathe, Additional Secretary

(Law).

Porvorim, 23rd November, 2018.

————

The Goa Goods and Services Tax

(Amendment) Ordinance, 2018

(Ordinance No. 3 of 2018)

Promulgated by the Governor of Goa in the

Sixty-ninth Year of the Republic of India.

An Ordinance to amend the Goa Goods and

Services Tax Act, 2017 (Goa Act 4 of 2017).

Whereas, the Legislative Assembly of Goa

is not in session and the Governor of Goa is

EXTRAORDINARY

No. 3

satisfied that circumstances exist which

render it necessary for her to take immediate

action.

Now, therefore, in exercise of the powers

conferred by clause (1) of article 213 of the

Constitution of India, the Governor of Goa is

pleased to promulgate the following

Ordinance, namely:—

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

Ordinance may be called the Goa Goods and

Services Tax (Amendment) Ordinance, 2018.

(2) Save as otherwise provided in this

Ordinance, the provisions of this Ordinance

shall come into force on such date as the

Government may, by notification in the Official

Gazette, appoint and different dates may be

appointed for different provisions of this

Ordinance and any reference in any such

provision to the commencement of this

Ordinance shall be construed as a reference

to the coming into force of that provision.

2. Amendment of section 2.— In section 2

of the Goa Goods and Services Tax Act, 2017

(Goa Act 4 of 2017) (hereinafter referred to as

the “principal Act”),—

(i) in clause (4), for the words “the Appellate

Authority and the Appellate Tribunal”, the

expression “the Appellate Authority, the

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Appellate Tribunal and the Authority referred

to in sub-section (2) of section 171” shall be

substituted;

(ii) in clause (16), for the words “Central

Board of Excise and Customs”, the words

“Central Board of Indirect Taxes and Customs”

shall be substituted;

(iii) in clause (17), for sub-clause (h), the

following sub-clause shall be substituted,

namely:—

“(h) activities of a race club including by

way of totalisator or a license to bookmaker

or activities of a licensed bookmaker in such

club; and”;

(iv) clause (18) shall be omitted;

(v) in clause (35), for the expression “clause

(c)”, the expression “clause (b)” shall be

substituted;

(vi) in clause (69), in sub-clause (f), after the

word and figures “article 371”, the expression

“and article 371J” shall be inserted;

(vii) in clause (102), the following

Explanation shall be inserted, namely:—

“Explanation.— For the removal of

doubts, it is hereby clarified that the

expression “services” includes facilitating

or arranging transactions in securities;”.

3. Amendment of section 7.— In section 7

of the principal Act, with effect from the 1st

day of July, 2017,—

(i) in sub-section (1),—

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

furtherance of business;”, the word “and”

shall be inserted and shall always be

deemed to have been inserted;

(b) in clause (c), the word “and” shall be

omitted and shall always be deemed to

have been omitted;

always be deemed to have been omitted;

(ii) after sub-section (1), the following

sub-section shall be inserted and shall always

be deemed to have been inserted, namely:—

“(1A) Where certain activities or

transactions, constitute a supply in

accordance with the provisions of sub-

-section (1), they shall be treated either as

supply of goods or supply of services as

referred to in Schedule II.”;

(iii) in sub-section (3), for the expression

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

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

substituted.

4. Amendment of section 9.— In section 9

of the principal Act, for sub-section (4), the

following sub-section shall be substituted,

namely:—

“(4) The Government may, on the

recommendations of the Council, by

notification, specify a class of registered

persons who shall, in respect of supply of

specified categories of goods or services or

both received from an unregistered supplier,

pay the tax on reverse charge basis as the

recipient of such supply of goods or services

or both, and all the provisions of this Act

shall apply to such recipient as if he is the

person liable for paying the tax in relation

to such supply of goods or services or

both.”.

5. Amendment of section 10.— In section

10 of the principal Act,—

(i) in sub-section (1),—

(a) for the expression “in lieu of the tax

payable by him, an amount calculated at

such rate”, the expression “in lieu of the tax

payable by him under sub-section (1) of

section 9, an amount of tax calculated at

such rate” shall be substituted;

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

crore rupees, as may be recommended by

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the Council.”, the expression “one crore and

fifty lakh rupees, as may be recommended

by the Council:” shall be substituted;

shall be inserted, namely:—

“Provided further that a person who opts

to pay tax under clause (a) or clause (b) or

clause (c) may supply services (other than

those referred to in clause (b) of paragraph

6 of Schedule II), of value not exceeding ten

per cent. of turnover in the State in the

preceding financial year or five lakh rupees,

whichever is higher.”;

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

following clause shall be substituted,

namely:—

“(a) save as provided in sub-section (1),

he is not engaged in the supply of

services;”.

6. Amendment of section 12.— In section

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

clause (a), the expression “sub-section (1) of”

shall be omitted.

7. Amendment of section 13.— In section

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

expression “sub-section (2) of” wherever it

occurs, shall be omitted.

8. Amendment of section 16.— In section

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

(i) in clause (b), for the Explanation, the

following Explanation shall be substituted,

namely:—

“Explanation.— For the purposes of this

clause, it shall be deemed that the

registered person has received the goods

or, as the case may be, services—

(i) where the goods are delivered by the

supplier to a recipient or any other person

on the direction of such registered person,

whether acting as an agent or otherwise,

before or during movement of goods, either

by way of transfer of documents of title to

goods or otherwise;

(ii) where the services are provided by

the supplier to any person on the direction

of and on account of such registered

person.”;

(ii) in clause (c), for the word and figures

“section 41”, the words, figures and letter

“section 41 or section 43A” shall be

substituted.

9. Amendment of section 17.— In section

17 of the principal Act,—

(i) in sub-section (3), the following

Explanation shall be inserted, namely:—

“Explanation.— For the purposes of this

sub-section, the expression “value of

exempt supply” shall not include the value

of activities or transactions specified in

Schedule III, except those specified in

paragraph 5 of the said Schedule.”;

(ii) in sub-section (5), for clauses (a) and (b),

the following clauses shall be substituted,

namely:—

“(a) motor vehicles for transportation of

persons having approved seating capacity

of not more than thirteen persons (including

the driver), except when they are used for

making the following taxable supplies,

namely:—

(A) further supply of such motor

vehicles; or

(B) transportation of passengers; or

motor vehicles;

(aa) vessels and aircraft except when

they are used,—

(i) for making the following taxable

supplies, namely:—

(A) further supply of such vessels or

aircraft; or

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(B) transportation of passengers; or

such vessels; or

(D) imparting training on flying such

aircraft;

(ii) for transportation of goods;

(ab) services of general insurance,

servicing, repair and maintenance in so far

as they relate to motor vehicles, vessels or

aircraft referred to in clause (a) or clause

(aa):

Provided that the input tax credit in

respect of such services shall be available—

(i) where the motor vehicles, vessels

or aircraft referred to in clause (a) or

clause (aa) are used for the purposes

specified therein;

(ii) where received by a taxable person

engaged,—

(I) in the manufacture of such motor

vehicles, vessels or aircraft; or

(II) in the supply of general insurance

services in respect of such motor

vehicles, vessels or aircraft insured by

him;

(b) the following supply of goods or

services or both,—

(i) food and beverages, outdoor catering,

beauty treatment, health services, cosmetic

and plastic surgery, leasing, renting or

hiring of motor vehicles, vessels or aircraft

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

when used for the purposes specified

therein, life insurance and health insurance:

Provided that the input tax credit in

respect of such goods or services or both

shall be available where an inward supply

of such goods or services or both is used by

a registered person for making an outward

taxable supply of the same category of

goods or services or both or as an element

of a taxable composite or mixed supply;

(ii) membership of a club, health and

fitness centre; and

(iii) travel benefits extended to employees

on vacation such as leave or home travel

concession:

Provided that the input tax credit in

respect of such goods or services or both

shall be available, where it is obligatory for

an employer to provide to its employees

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

10. Amendment of section 20.— In section

20 of the principal Act, in the Explanation, in

clause (c), for the words and figures “under

entry 84,”, the words, figures and letter

“under entries 84 and 92A” shall be

substituted.

11. Amendment of section 22.— In section

22 of the principal Act,—

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

following proviso shall be inserted, namely:—

“Provided further that where such

person makes taxable supplies of goods or

services or both from a special category

State in respect of which the Central

Government has enhanced the aggregate

turnover referred to in the first proviso, he

shall be liable to be registered if his

aggregate turnover in a financial year

exceeds the amount equivalent to such

enhanced turnover.”;

(ii) in the Explanation, in clause (iii), after

the word “Constitution”, the expression

“except the State of Jammu and Kashmir

and States of Arunachal Pradesh, Assam,

Himachal Pradesh, Meghalaya, Sikkim and

Uttarakhand” shall be inserted.”.

12. Amendment of section 24.— In section

24 of the principal Act, in clause (x), after the

words “commerce operator”, the words

and figures “who is required to collect tax

at source under section 52” shall be

inserted.

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13. Amendment of section 25.— In section

25 of the principal Act,—

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

before the Explanation, the following proviso

shall be inserted, namely:—

“Provided further that a person having a

unit, as defined in the Special Economic

Zones Act, 2005 (Central Act 28 of 2005), in

a Special Economic Zone or being a Special

Economic Zone developer shall have to

apply for a separate registration, as distinct

from his place of business located outside

the Special Economic Zone in the State.”;

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

following proviso shall be substituted,

namely:—

“Provided that a person having multiple

places of business in the State may be

granted a separate registration for each

such place of business, subject to such

conditions as may be prescribed.”.

14. Amendment of section 29.— In section

29 of the principal Act,—

(i) in the heading, after the word

“Cancellation”, the words “or suspension”

shall be inserted;

(ii) in sub-section (1), after clause (c), the

following proviso shall be inserted, namely:—

“Provided that during pendency of the

proceedings relating to cancellation of

registration filed by the registered person,

the registration may be suspended for such

period and in such manner as may be

prescribed.”;

(iii) in sub-section (2), after the proviso, the

following proviso shall be inserted, namely:—

“Provided further that during pendency

of the proceedings relating to cancellation

of registration, the proper officer may

suspend the registration for such period and

in such manner as may be prescribed.”.

15. Amendment of section 34.— In section

34 of the principal Act,—

(i) in sub-section (1),—

(a) for the words “Where a tax invoice

has”, the words “Where one or more tax

invoices have” shall be substituted;

(b) for the words “a credit note”, the

words “one or more credit notes for supplies

made in a financial year” shall be

substituted;

(ii) in sub-section (3),—

(a) for the words “Where a tax invoice

has”, the words “Where one or more tax

invoices have” shall be substituted;

(b) for the words “a debit note”, the

words “one or more debit notes for supplies

made in a financial year” shall be

substituted.

16. Amendment of section 35.— In section

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

following proviso shall be inserted, namely:—

“Provided that nothing contained in this

sub-section shall apply to any department

of the Central Government or a State

Government or a local authority, whose

books of account are subject to audit by the

Comptroller and Auditor-General of India or

an auditor appointed for auditing the

accounts of local authorities under any law

for the time being in force.”.

17. Amendment of section 39.— In section

39 of the principal Act,—

(i) in sub-section (1),—

(a) for the words “in such form and

manner as may be prescribed”, the

expression “in such form, manner and

within such time as may be prescribed”

shall be substituted;

(b) the words “on or before the twentieth

day of the month succeeding such calendar

month or part thereof” shall be omitted;

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namely:—

“Provided that the Government may, on

the recommendations of the Council, notify

certain classes of registered persons who

shall furnish return for every quarter or part

thereof, subject to such conditions and

safeguards as may be specified therein.”;

(ii) in sub-section (7), the following proviso

shall be inserted, namely:—

“Provided that the Government may, on

the recommendations of the Council, notify

certain classes of registered persons who

shall pay to the Government the tax due or

part thereof as per the return on or before

the last date on which he is required to

furnish such return, subject to such

conditions and safeguards as may be

specified therein.”;

(iii) in sub-section (9),—

(a) for the words “in the return to be

furnished for the month or quarter during

which such omission or incorrect

particulars are noticed”, the words “in such

form and manner as may be prescribed”

shall be substituted;

(b) in the proviso, for the words “the end

of the financial year”, the words “the end

of the financial year to which such details

pertain” shall be substituted.

18. Insertion of new section 43A.— After

section 43 of the principal Act, the following

section shall be inserted, namely:—

“43A. Procedure for furnishing return and

availing input tax credit.— (1) Not-

-withstanding anything contained in sub-

-section (2) of section 16, section 37 or

section 38, every registered person shall in

the returns furnished under sub-section (1)

of section 39 verify, validate, modify or delete

the details of supplies furnished by the

suppliers.

(2) Notwithstanding anything contained in

section 41, section 42 or section 43, the

procedure for availing of input tax credit by

the recipient and verification thereof shall be

such as may be prescribed.

(3) The procedure for furnishing the details

of outward supplies by the supplier on the

common portal, for the purposes of availing

input tax credit by the recipient shall be such

as may be prescribed.

(4) The procedure for availing input tax

credit in respect of outward supplies not

furnished under sub-section (3) shall be such

as may be prescribed and such procedure

may include the maximum amount of the input

tax credit which can be so availed, not

exceeding twenty per cent. of the input tax

credit available, on the basis of details

furnished by the suppliers under the said sub-

section.

(5) The amount of tax specified in the

outward supplies for which the details have

been furnished by the supplier under sub-

-section (3) shall be deemed to be the tax

payable by him under the provisions of the

Act.

(6) The supplier and the recipient of a

supply shall be jointly and severally liable to

pay tax or to pay the input tax credit availed,

as the case may be, in relation to outward

supplies for which the details have been

furnished under sub-section (3) or sub-section

(4) but return thereof has not been furnished.

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

recovery shall be made in such manner as

may be prescribed and such procedure may

provide for non-recovery of an amount of tax

or input tax credit wrongly availed not

exceeding one thousand rupees.

(8) The procedure, safeguards and

threshold of the tax amount in relation to

outward supplies, the details of which can

be furnished under sub-section (3) by a

registered person,—

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(a) within six months of taking

registration;

(b) who has defaulted in payment of tax

and where such default has continued for

more than two months from the due date of

payment of such defaulted amount, shall be

such as may be prescribed.”.

19. Amendment of section 48.— In section

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

the word and figures “section 45”, the words

“and to perform such other functions” shall

be inserted.

20. Amendment of section 49.— In section

49 of the principal Act,—

(i) in sub-section (2), for the word and

figures “section 41”, the words, figures and

letter “section 41 or section 43A” shall be

substituted;

(ii) in sub-section (5),—

(a) in clause (c), the following proviso

shall be inserted, namely:—

“Provided that the input tax credit on

account of State tax shall be utilized

towards payment of integrated tax only

where the balance of the input tax credit

on account of central tax is not available

for payment of integrated tax;”;

(b) in clause (d), the following proviso

shall be inserted, namely:—

“Provided that the input tax credit on

account of Union territory tax shall be

utilized towards payment of integrated

tax only where the balance of the input

tax credit on account of central tax is not

available for payment of integrated tax;”.

21. Insertion of new section 49A and section

49B.— After section 49 of the principal Act,

the following sections shall be inserted,

namely:—

“49A. Utilisation of input tax credit

subject

certain

conditions.—

Notwithstanding anything contained in

section 49, the input tax credit on account

of State tax shall be utilized towards

payment of integrated tax or State tax, as

the case may be, only after the input tax

credit available on account of integrated tax

has first been utilised fully towards such

payment.

49B. Order of utilization of the input tax

credit.—

Notwithstanding

anything

contained in this Chapter and subject to

the provisions of clause (e) and clause (f)

of sub-section (5) of section 49, the

Government may, on the recommendations

of the Council, prescribe the order and

manner of utilization of the input tax credit

on account of integrated tax, central tax,

State tax or Union territory tax, as the case

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

22. Amendment of section 52.— In section

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

the word and figures “section 37”, the words

and figures “section 37 or section 39” shall be

substituted.

23. Amendment of section 54.— In section

54 of the principal Act,—

(i) in sub-section (8), for clause (a), the

following clause shall be substituted,

namely:—

“(a) refund of tax paid on export of goods

or services or both or on inputs or input

services used in making such exports;”;

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

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

words “foreign exchange”, the words “or

in Indian rupees wherever permitted by the

Reserve Bank of India” shall be inserted;

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

-clause shall be substituted, namely:—

“(e) in the case of refund of unutilised

input tax credit under clause (ii) of the

first proviso to sub-section (3), the due

date for furnishing of return under section

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39 for the period in which such claim for

refund arises;”.

24. Amendment of section 79.— In section

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

the following Explanation shall be inserted,

namely:—

“Explanation.— For the purposes of this

section, the word person shall include

“distinct persons” as referred to in sub-

-section (4) or, as the case may be, sub-

-section (5) of section 25.”.

25. Amendment of section 107.— In section

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

clause (b), after the expression “arising from

the said order,”, the expression “subject to a

maximum of twenty-five crore rupees,” shall

be inserted.

26. Amendment of section 112.— In section

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

clause (b), after the expression “arising from

the said order,” the expression “subject to a

maximum of fifty crore rupees,” shall be

inserted.

27. Amendment of section 129.— In section

129 of the principal Act, in sub-section (6), for

the words “seven days” wherever they

occur, the words “fourteen days” shall be

substituted.

28. Amendment of section 143.— In section

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

clause (b), after the proviso, the following

proviso shall be inserted, namely:—

“Provided further that the period of one

year and three years may, on sufficient cause

being shown, be extended by the

Commissioner for a further period not

exceeding one year and two years

respectively.”.

29. Amendment of section 173.— In section

173 of the principal Act, in clause (ii), for the

expression “Act 16 of 1969”, the expression

“Act 7 of 1969” shall be substituted.

30. Amendment of Schedule I.— In Schedule

I of the principal Act, in paragraph 4, the word

“taxable” shall be omitted.

31. Amendment of Schedule II.— In

Schedule II of the principal Act, in the heading,

after the word “ACTIVITIES”, the words “OR

TRANSACTIONS” shall be inserted and shall

be deemed to have been inserted with effect

from the 1st day of July, 2017.

32. Amendment of Schedule III.— In

Schedule III of the principal Act,—

(i) after paragraph 6, the following

paragraphs shall be inserted, namely:—

“7. Supply of goods from a place outside

India to another place outside India without

such goods entering into India.

8. (a) Supply of warehoused goods to any

person before clearance for home

consumption;

(b) Supply of goods by the consignee to

any other person, by endorsement of

documents of title to the goods, after the

goods have been dispatched from the port

of origin located outside India but before

clearance for home consumption.”;

(ii)

the existing Explanation shall be

numbered as Explanation 1 and after

Explanation 1 as so numbered, the following

Explanation shall be inserted, namely:—

“Explanation 2.— For the purposes of

paragraph 8, the expression “warehoused

goods” shall have the same meaning as

assigned to it in the Customs Act, 1962

(Central Act 52 of 1962).”.

Raj Bhavan.

MRIDULA SINHA

Date: 20 November, 2018. Governor of Goa.

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