CGST ACT, 2017 (Updated As on 31st Aug 2021)
AS ON 31.08.2021
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
(12 OF 2017) AS
AMENDED BY THE:-
·
THE CENTRAL
GOODS AND SERVICES TAX (EXTENSION TO JAMMU AND KASHMIR) ACT, 2017 (NO. 26 OF 2017);
·
THE FINANCE ACT, 2018 (NO. 13 OF 2018);
·
THE CENTRAL
GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 (NO.
31 OF 2018);
·
THE FINANCE (NO. 2) ACT,
2019 (NO. 23 OF 2019);
·
THE FINANCE ACT, 2020 (NO. 12
OF 2020);
·
THE
TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020;
·
THE FINANCE ACT, 2021 (NO. 13 OF 2021).
Note: This updated
version of the Central Goods and Services
Tax Act, 2017 as amended
upto 31st August, 2021 has been prepared for convenience and easy
reference of the trade and industry
and has no legal binding or force. The Acts as published in the official
Gazette of the Government of India
only have the force of law. Any errors in this document may kindly be brought
to notice by sending an email on gst-cbec@gov.in.
Table of Contents
|
200 |
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 12th April, 2017/Chaitra 22, 1939 (Saka) The
following Act of Parliament received
the assent of the President on the 12th April, 2017, and is hereby published
for general information:—
THE CENTRAL GOODS
AND SERVICES TAXACT,
2017 NO. 12 OF 2017
[12th April, 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
for matters connected therewith or incidentalthereto.
BE it enacted by
Parliament in the Sixty-eighth Year of the Republic of India as follows:—
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 [*****.]1
(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
 |
1 Omitted ―except the State of Jammu and Kashmir‖ by The Central Goods and Services
Tax (Extension to Jammu and Kashmir)
Act, 2017 (No. 26 of 2017) – Brought into force w.e.f.
8th July, 2017.
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;
(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 Indirect
Taxes and Customs]2, the Revisional Authority, the Authority for Advance Ruling,
the Appellate Authority for Advance Ruling, [the Appellate Authority,
the Appellate Tribunal and the Authority
referred to in sub-section (2) of section
171]3;
(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—
|
2 Substituted for ―Central Board of Excise and Customs‖ by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought
into force w.e.f. 01st February, 2019.
3 Substituted for ―the Appellate Authority and the Appellate Tribunal‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f.
01st February, 2019.
(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 Indirect
Taxes and Customs]4 constituted under the Central
Boards of Revenue
Act, 1963;
4 Substituted for ―Central Board of Excise and
Customs‖
by The Finance Act,
2018 (No. 13 of 2018) – Brought into
force w.e.f. 29th March, 2018.
(17)
―business‖ includes ––
(a)
any trade, commerce, manufacture, profession, vocation, adventure,
wager or any other similar
activity, whether or not it is for a pecuniary benefit;
(b)
any activity or transaction in connection with or incidental
or ancillary to sub-clause (a);
(c)
any activity or transaction in the nature
of sub-clause (a), whether
or not there is volume,
frequency, continuity or regularity of such transaction;
(d)
supply or acquisition of goods including
capital goods and services in connection with commencement or closure of business;
(e)
provision by a club, association, society,
or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f)
admission, for a consideration, of persons
to any premises;
(g)
services supplied by a person as the holder of an office which
has been accepted
by him in the course
or furtherance of his trade,
profession or vocation;
(h)
[activities of a race club
including by way of totalisator or a license to book maker or activities of a licensed
book maker in such club; and]5
(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) [*****];6
|
5 Substituted for ―(h) services provided by a race club by way of totalisator or a licence to book maker in such
club; and.‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31
of 2018) – Brought into force w.e.f. 01st
February, 2019.
6 Omitted ―(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,
(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 (b) 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 declared as
gazetted holidays by the Central Government or the concerned
State or Union territory Government;
 |
or public utilities;‖
by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force
w.e.f. 01st February, 2019.
(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, the supply of goods, packing materials, transport and insurance is a composite
supply and supply of goods is a principal supply;
(31)
―consideration‖ in relation to the
supply of goods or services
or both includes–
(a)
any payment made or to be made,
whether in money or otherwise, in respect
of, in response to, or for the inducement of, the supply of goods or services
or both, whether by the recipient or
by any other person but shall not include any subsidy given by the Central Government or a State Government;
(b)
the monetary value of any act or
forbearance, in respect of, in response to, or
for the inducement of, the supply of goods or services
or both, whether
by the recipient or by any other person but shall not include any
subsidy given by the Central Government or a
State Government:
Provided that a
deposit given in respect of the supply of goods or services or both shall not be considered as payment made
for such supply unless the supplier applies such deposit as consideration for the said supply;
(32)
―continuous supply of goods‖ means a supply of goods which is provided, or agreed to be provided, continuously or
on recurrent basis, under a contract, whether
or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a
regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification,
specify;
(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 (b)]7 of sub-section (1) of section
2 of the Cost and Works Accountants Act, 1959;
(36)
―Council‖ means the Goods
and Services Tax Council established under article 279A of the Constitution;
(37)
―credit note‖ means a document issued by a registered person under sub- section (1) of section 34;
(38)
―debit note‖ means a document issued by a registered person under sub- section (3) of section 34;
(39)
―deemed exports‖ means such supplies of goods as may be notified under section 147;
(40)
―designated authority‖ means
such authority as may be notified by the
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;
|
7 Substituted for ―clause (c)‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of
2018) –Brought
into force w.e.f. 01st February, 2019.
(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;
(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[and article 371J]8 of the Constitution; or
(g)
a Regional Council
constituted under article
371A of the Constitution;
(70)
―location of the recipient of services‖ means,—
(a)
where a supply is received at a
place of business for which the registration
has been obtained,
the location of such place of business;
(b)
where a supply is received at a
place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the location
of such fixed establishment;
(c)
where a supply is received at more than one establishment, whether the place of business
or fixed establishment, the location of the establishment most directly concerned
with the receipt
of the supply; and
(d)
in absence of such places, the
location of the usual place of residence of the recipient;
(71)
―location of the supplier of services‖ means,—
(a)
where a supply is made from a
place of business for which the registration
has been obtained,
the location of such place of business;
(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
|
8 Inserted by The Central Goods and
Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force
w.e.f. 01st February, 2019.
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, 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;
India;
(h)
any body corporate
incorporated by or under the laws of a country outside
(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;
(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;
[Explanation.–– For the removal
of doubts, it is hereby clarified that
the expression ―services‖ includes facilitating or
arranging transactions in securities;]9
(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 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
|
9 Inserted
by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f.
01st February, 2019.
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 and Daman and Diu;]10
(d)
[Ladakh;]11
|
(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;
(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.
|
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,
(e)
Additional Commissioners
of
Central
Tax
or
Additional
Directors
of
Central Tax,
(f)
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
under GST.— (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.
(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;[and]12
(c)
the activities specified in
Schedule I, made or agreed to be made without a consideration;[****]13
(d) [*****]14.
[(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.]15
(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.
|
12 Inserted w.e.f 01st July,
2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought
into force on 01st February, 2019.
13 Omitted ―and‖ w.e.f 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought
into force on 01st February, 2019.
14 Omitted ―(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule
II.‖
w.e.f. 01st July, 2017 by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of
2018)
– Brought into force on 01st February,
2019.
15 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)
– Brought into force on 01st February, 2019.
(3)
Subject to the provisions of [sub-sections (1), (1A) and (2)]16, 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.
(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.
16 Substituted for ―sub-sections (1) and (2)‖ w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force on 01st February,
2019.
(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.]17
(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) Notwithstanding anything
to the contrary contained in this Act but subject
to the provisions of sub-sections (3) and (4) of section
9, a registered person, whose
aggregate turnover in the preceding
financial year did not exceed
fifty lakh rupees, may opt to pay, [in lieu of the tax payable by him
under sub-section (1) of section
9, an amount calculated at such rate]18 as may be prescribed, but not exceeding,––
|
17 Substituted
for ―(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.‖
by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f.
01st February, 2019.
18 Substituted for ―ïn lieu of the tax payable by him, an amount calculated at such rate‖, by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31
of 2018) – Brought into force w.e.f. 01st February,
2019.
(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
II, 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 and fifty lakh rupees]19, as may be recommended by the Council:
[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 a State or Union territory
in the preceding financial year or five lakh rupees,
whichever is higher]20.
[Explanation.––For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loans or
advances in so far as the consideration
is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State or
Union territory]21.
(2)
The registered person shall be eligible to opt under sub-section (1), if:—
(a)
[save as provided in sub-section
(1), he is not engaged in the supply of services;]22
 |
19 Substituted for ―one crore rupees‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019.
20 Inserted by
The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –
Brought into force w.e.f. 01st February, 2019.
21 Inserted by
The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st
January, 2020.
22 Substituted for ―(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of
paragraph 6 of Schedule II save as provided in sub-section (1), he is not
engaged in the supply of services.‖ by The Central
Goods and Services Tax (Amendment) Act,
2018 (No. 31 of 2018) – Brought
into
(b)
he is not engaged in making any supply of goods [or
services]23 which are not leviable to tax under this Act;
(c)
he is not engaged in making any
inter-State outward supplies of goods [or services]24;
(d)
he is not engaged in making any
supply of goods [or services]25 through an electronic commerce operator who is required to collect tax at
source under section 52; [****]26
(e)
he is not a manufacturer of such goods
as may be notified by the Government on the recommendations of the [Council
;and]27
(f)
[he is neither
a casual taxable
person nor a non-resident taxable person:]28
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.
[(2A) Notwithstanding anything to the contrary contained
in this Act, but subject
to the provisions of sub-sections (3) and (4) of section 9, a registered
person, not eligible to opt to pay
tax under sub-section (1) and sub-section (2), 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 under sub-section (1) of section 9, an amount of tax
calculated at such rate as may be
prescribed, but not exceeding three per cent. of the turnover in State or turnover in Union territory, if he is not––
(a)
|
engaged in making any supply of goods or services which
are not leviable to tax under this Act;
force w.e.f. 01st February,
2019.
23 Inserted by The Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January,
2021. 24 Inserted
by The Finance Act, 2020 (No. 12 of 2020) – Brought
into force w.e.f.
01st January, 2021 25 Inserted
by The Finance Act, 2020 (No. 12 of 2020)
– Brought into force w.e.f.
01st January, 2021
26 Omitted ―and‖ by The Finance
(No. 2) Act, 2019 (No. 23 of 2019) –
Brought
into
force w.e.f. 01st
January, 2020.
27 Substituted for ―Council:‖ by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st
January, 2020.
28 Inserted by The Finance
(No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
(b)
engaged in making
any inter-State outward
supplies of goods or services;
(c)
engaged in making any supply of goods or services through
an electronic commerce
operator who is required to collect tax at source
under section 52;
(d)
a
manufacturer of such goods or supplier of such services
as may be notified by the Government on the recommendations
of the Council; and
(e)
a casual taxable
person or a non-resident taxable
person:
Provided that where more than one registered person are having the same Permanent Account
Number issued under the Income-tax Act, 1961, the
registered person shall not be
eligible to opt for the scheme under this sub-section unless all such registered persons opt to pay tax under this sub-section.]29
(3)
The option availed of by a
registered person under sub-section (1) [or sub- section (2A), as the case may be,]30 shall lapse with
effect from the day on which his aggregate turnover
during a financial
year exceeds the limit specified
under sub-section
(1)
[or sub-section (2A),
as the case may be.] 31
(4)
A taxable person to whom the
provisions of sub-section (1) [or, as the case
may be, sub-section (2A)]32 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) [or sub-section (2A),
as the case may be,]33 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.
|
29 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
30 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
31 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
32 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
33 Inserted by The Finance
(No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
[Explanation
1.––For the purposes
of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression ―aggregate turnover‖ shall include the value of supplies made by such
person from the 1st day of April of a
financial year up to the date when he becomes liable for registration under
this Act, but shall not include the
value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the
consideration is represented by way of interest
or discount.
Explanation 2.––For the purposes
of determining the tax payable
by a person under this section, the expression ―turnover in
State or turnover in Union territory‖ shall not include the value
of following supplies, namely:––
(i)
supplies from the first day of
April of a financial year up to the date when
such person becomes
liable for registration under this Act; and
(ii)
exempt supply of services provided
by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.]34
11.
Power to grant Exemption.— (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
|
34 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f.
01st January,
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 leviable thereon has been granted absolutely, the registered person supplying such goods
or services or both shall not collect
the tax, in excess of the effective rate, on such supply of goods or services
or both.
CHAPTER IV TIME AND VALUE OF SUPPLY
12.
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 [******]35 section
31, to issue the invoice
with respect to the supply;
or
(b)
the date on which the supplier
receives the payment
with respect to the supply:
Provided that where
the supplier of taxable goods receives an amount up to one thousand
rupees in excess of the amount indicated
in the tax invoice, the time of supply to the extent of such excess amount
shall, at the option of the said supplier, be the date of issue of invoice
in respect of such excess
amount.
Explanation 1.––For the purposes
of clauses (a) and (b), ―supply‖ shall be deemed
to have been made to the extent it is covered by the invoice or, as the
case may be, the payment.
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 [******]36 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 [******]37 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.
(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.
37 Omitted ―sub-section (2) of‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019.
(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.— Notwithstanding anything contained in section 12 or section 13, the time
of supply, where there is a change
in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely:––
(a)
in case the goods or services or
both have been supplied before the change in rate oftax,––
(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:
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;
(iv)
any person directly or indirectly
owns, controls or holds twenty-five per cent. or more of the
outstanding voting stock or shares
of both of them;
(v)
one of them directly or indirectly controls
theother;
(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.
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 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;]38
(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
38 Substituted for ―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;‖ by The Central Goods and
Services Tax (Amendment) Act, 2018 (No.
31 of 2018) – Brought
into force w.e.f. 01st February, 2019.
input tax credit admissible in respect of the said supply; and
(d)
he has furnished the return
under section 39:
Provided that where the goods against
an invoice are received in lots or instalments, the registered person shall be entitled to take credit upon receipt
of the last lot or instalment:
Provided further
that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies
on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable
thereon within a period of one
hundred and eighty days from the date of issue of invoice by the supplier, an
amount equal to the input tax credit
availed by the recipient shall be added to his output tax liability, along with interest
thereon, in such manner as may be prescribed:
Provided also that the recipient shall be entitled
to avail of the credit
of input tax on payment made by him of the amount towards
the value of supply of goods or services or both along with tax payable thereon.
(3)
Where the registered person has
claimed depreciation on the tax component of
the cost of capital goods and plant and machinery under the provisions of the
Income- tax Act, 1961, the input tax credit on the said tax component
shall not be allowed.
(4)
A
registered person shall not be entitled to take input tax credit in respect
of any invoice or debit note for supply of goods or services or both
after the due date of furnishing of
the return under section 39 for the month of September following the end of financial year to which such invoice or
[******]39 debit note pertains or furnishing of the relevant
annual return, whichever is earlier.
|
[Provided that the registered person shall be
entitled to take input tax credit after the due date of furnishing of the return
under section 39 for the month of September, 2018 till the due date of furnishing of
the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to
such debit note for supply of goods
or services or both made during the financial year 2017-18, the details of
which have been uploaded by the supplier
under sub-section (1) of section
37 till the due date
39 Omitted ―invoice relating to such‖ by The Finance
Act, 2020 (No. 12 of 2020) – Brought into
force w.e.f. 01st January,
2021.
for furnishing the details under
sub-section (1) of said section for the month of March, 2019.]40
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 II, sale of building.
[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;]41
(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
|
40 Inserted vide
Order No. 02/2018 –Central Tax dated 31.12.2018
41 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
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 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
(C)
imparting training on driving such
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
(B)
transportation of passengers; or
(C)
imparting training on navigating 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;]42
(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 the same to its employees under any law for the time being in force.]43
42 Substituted for ―(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;‖
by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force
w.e.f. 01st February, 2019.
43 Substituted for ―(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
(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—
registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable
composite or mixed supply; and
(iv)
travel benefits extended to employees on vacation such as leave
or home travel concession;‖
by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force
w.e.f. 01st February, 2019.
(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
contained in semi-finished or finished goods held in stock relatable to such exempt supply
and on capital goods exclusively used for such
exempt supply on the day immediately preceding
the date from which such supply becomes
taxable:
Provided that the
credit on capital goods shall be reduced by such percentage points
as may be prescribed.
(2)
A registered person shall not be
entitled to take input tax credit under sub-section (1) in respect of any supply
of goods or services or both to him after the expiry
of one year from the
date of issue of
tax invoice relating
to such supply.
(3)
Where there is a change in the constitution of a registered person on account of sale, merger, demerger,
amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said
registered person shall be allowed to transfer the input tax credit
which remains unutilised in his electronic credit ledger to such sold, merged, demerged, amalgamated,
leased or transferred business in such manner as may be prescribed.
(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 jobworker.
(4)
The principal shall, subject to
such conditions and restrictions as may be prescribed, be allowed input tax credit
on capital goods sent to a job worker for job work.
(5)
Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the
principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to
a job worker for job work without being first
brought to his place of business.
(6)
Where the capital goods sent for
job work are not received back by the principal
within a period of three years of being sent out, it shall be deemed that such capital goods had been supplied by the
principal to the job worker on the day when the said capital goods
were sent out:
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 value
of turnover, reduced by the amount of
any duty or tax levied under [entries 84 and 92A]44 of List I of the Seventh Schedule to the
Constitution and entries 51 and 54 of List II 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.
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
44 Substituted for ―under entry 84‖ by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019.
aggregate turnover in a financial year exceeds ten lakhrupees:
[Provided further
that the Government may, at the request of a special category State and on the recommendations of the Council,
enhance the aggregate
turnover referred to in the
first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject
to such conditions and limitations, as may be so notified:]45
[Provided also that
the Government may, at the request of a State and on the recommendations of the Council, enhance
the aggregate turnover
from twenty lakh rupees
to such amount not exceeding forty lakh rupees in case of supplier who is
engaged exclusively in the supply of
goods, subject to such conditions and limitations, as may be notified:
Explanation.––For the purposes of this sub-section, a person shall
be considered to be
engaged exclusively in the supply of goods even if he is engaged in exempt
supply of services provided
by way of extending deposits,
loans or advances
in so far as the consideration is represented by way of interest or discount.]46
(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.
45 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
46 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
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
[except the State of Jammu and
Kashmir]47 [and States of Arunachal Pradesh, Assam, Himachal
Pradesh, Meghalaya, Sikkim and Uttarakhand.]48
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
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;
47 Inserted by
The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017
(No. 26 of 2017) (Corrigendum for
this provision issued vide Indian Institutes of Management Act, 2017 dated 31st December,
2017 (No. 33 of 2017)) – Brought
into force w.e.f.
8th July, 2017.
(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 [who is required to collect tax
at source under section 52;]49
(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:
[Provided further that a person having a unit, as defined in the Special Economic
Zones
Act, 2005, in a Special
Economic Zone or being a Special Economic
Zone developer shall have to
apply for a separate registration, as distinct from his place of business
located outside the Special Economic
Zone in the same State or Union territory.]50
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 places of business in a State or Union territory may be granted a separate
registration for each such place of business, subject to such conditions as may be prescribed.]51
(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
50 Inserted by
The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –
Brought into force w.e.f. 01st February, 2019.
51 Substituted for ―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.‖
by The Central
Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force
w.e.f. 01st February, 2019.
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.
[(6A) Every
registered person shall undergo authentication, or furnish proof of possession of Aadhaar number,
in such form and manner
and within such time as may be prescribed:
Provided that if an
Aadhaar number is not assigned to the registered person, such person shall be offered alternate and
viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe:
Provided further
that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish
alternate and viable means of identification,
registration allotted to such person shall be deemed to be invalid and
the other provisions of this Act shall apply as if such person
does not have a registration.
(6B) On and from
the date of notification, every individual shall, in order to be eligible for grant of registration,
undergo authentication, or furnish proof of possession of Aadhaar
number, in such manner as the Government may, on the recommendations of the Council,
specify in the said notification:
Provided that if an Aadhaar number is not assigned to an individual, such individual shall
be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council,
specify in the said notification.
(6C) On and from
the date of notification, every person, other than an individual, shall, in order to be eligible for grant
of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing
Director, whole time Director, such
number of partners, Members of Managing Committee of Association, Board of Trustees, authorised
representative, authorised signatory and such other class of persons,
in such manner, as the Government may, on the recommendations of the Council,
specify in the said notification:
Provided that where
such person or class of persons have not been assigned the Aadhaar Number, such person or class of
persons shall be offered alternate and viable
means of identification in such manner as the Government
may,
on
the recommendations of the Council,
specify in the said notification.
(6D) The provisions
of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of
persons or any State or Union territory or part thereof, as the Government may, on the recommendations of the
Council, specify by notification.
Explanation.—For
the purposes of this section, the expression ―Aadhaar number‖ shall have the same meaning as assigned to
it in clause (a) of section 2 of the Aadhaar
(Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.]52
(7)
Notwithstanding anything
contained in sub-section (6), a non-resident taxable
person may be granted registration under sub-section (1) on the basis
of such other documents as may be prescribed.
(8)
Where a person who is liable to be
registered under this Act fails to obtain registration,
the proper officer may, without prejudice to any action which may be taken under this Act or under any other law for
the time being in force, proceed to register such person in such manner as may
be prescribed.
(9)
Notwithstanding anything contained
in sub-section (1),––
(a)
any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate
or Embassy of foreign countries; and
(b)
any other person or class of persons, as may
be notified by the Commissioner,
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
52 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
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 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 [or suspension]53
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
53 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
disposed of; or
(b)
there is any change in the constitution of the business;
or
(c)
[the taxable person is no longer
liable to be registered under section 22 or section
24 or intends to optout of the registration voluntarily made under sub-section
(3) of section 25:]54
[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.]55
(2)
The proper officer may cancel the
registration of a person from such date, including any retrospective date, as he may deem fit, where,––
(a)
a registered person has
contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b)
a person paying tax under section
10 has not furnished returns for three consecutive tax periods; or
(c)
any registered person, other than
a person specified in clause (b), has
not furnished returns for a continuous period
of six months; or
(d)
any person who has taken voluntary
registration under sub-section (3) of section
25 has not commenced business
within six months
from the date of registration; or
(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:
[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
54 Substituted
for ―(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.‖ by the Finance Act,
2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January,
2021.
55 Inserted by The Central Goods and Services Tax
(Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019.
manner as may be prescribed.]56
(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, 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.
[Provided that such period may, on sufficient cause being shown, and for reasons
56 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
to be recorded in writing, be extended,—
(a)
by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
(b)
by the Commissioner, for a further
period not exceeding thirty days, beyond
the period specified in clause (a).]57
(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.
57 Substituted for the proviso ―Provided that the registered person who was served notice under
sub-section
(2) of section 29 in the manner as provided in clause (c) or clause (d) of
sub-section (1) of section 169 and who
could not reply to the said notice, thereby resulting in cancellation of his
registration certificate and is hence
unable to file application for revocation of cancellation of registration under sub-section (1) of section
30 of the Act, against such order passed up to 31.03.2019, shall be allowed to
file application for revocation of cancellation of the registration not later than 22.07.2019‖ (which
was Inserted vide Order No. 05/2019-GST dated 23.04.2020) by The Finance Act,
2020 (No. 12 of 2020) –
Brought
into
force
w.e.f. 01st January, 2021.
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,—
(a)
specify the categories of services
or supplies in respect of which a tax invoice
shall be issued, within
such time and in such manner
as may be prescribed;
(b)
subject to the condition mentioned
therein, specify the categories of services in
respect of which—
(i)
any other document issued in
relation to the supply shall be deemed to be a tax invoice;
or
(ii)
tax invoice may not be issued.]58
58
Substituted for the
proviso ―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
(3)
Notwithstanding anything contained
in sub-sections (1) and (2)––
(a)
a registered person may, within
one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a
revised invoice against the invoice already issued
during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him;
(b)
a registered person may not issue
a tax invoice if the value of the goods or services or both supplied
is less than two hundred rupees subject
to such conditions and in such manner as may be prescribed;
(c)
a registered person supplying
exempted goods or services or both or paying
tax under the provisions of section 10 shall issue, instead of a tax
invoice, a bill of supply containing such particulars and in such manner as may
be prescribed:
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;
(b) tax invoice may not be issued.‖ by the Finance Act, 2020 (No. 12 of 2020) – Brought
into force w.e.f.
01st January, 2021.
(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
isearlier.
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.
[31A. Facility of digital payment
to recipient.— (1) The Government may, on the recommendations of the Council, prescribe a class of
registered persons who shall provide
prescribed modes of electronic payment to the recipient of supply of goods or services
or both made by him and give option to such recipient
to make payment accordingly, in such manner
and subject to such conditions and restrictions, as may be
prescribed.]59
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.
33.
Amount of tax to be indicated in tax invoice and other documents.— Notwithstanding anything contained in this Act or any other law for the
time being in force, where any supply
is made for a consideration, every person who is liable to pay tax for such supply shall prominently
indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which shall
form part of the price at which such supply is made.
34.
Credit and debit notes.— (1) [Where one or more tax invoices have]60 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 [one
or more credit notes for supplies
made in a financial year]61 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:
59 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
60 Substituted for ―Where a tax invoice has‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f.
01st February, 2019.
61 Substituted for ―a credit note‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –
Brought into force
w.e.f. 01st February, 2019.
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 one or more tax invoices
have]62 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
[one or more debit notes for supplies made in a
financial year]63 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.
62 Substituted for ―Where a tax invoice has‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f.
01st February, 2019.
63 Substituted for ―a debit note‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)
– Brought into force w.e.f.
01st February, 2019.
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 accounts or documents for such purpose
as may be specified therein.
(4)
Where the Commissioner considers
that any class of taxable
person 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) [[*****]64]65
(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.
64
Inserted ―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‖ by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f.
01st February, 2019.
65 Omitted ―(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:
[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.]‖ – by The Finance Act, 2021 No. 13
Of 2021 – Brought into force w.e.f. 01st August,
2021.
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 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.
[Provided further
that the 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, 2018 till
the due date for furnishing the details under
subsection (1) for the month of March, 2019 or for the quarter January,
2019 to March, 2019] 66
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
66 Inserted vide Order No. 02/2018-Central Tax dated 31.12.2018
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, 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 of 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, 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, in such form and
manner, and within such time, as may be
prescribed:
Provided that the Government may, on the recommendations of the Council, notify
certain class of registered persons who shall furnish a return for every
quarter or part thereof,
subject to such conditions and restrictions as may be specified therein.
(2)
A registered person paying tax
under the provisions of section 10, shall, for each financial year or part thereof, furnish a return,
electronically, of turnover in the State or Union
territory, inward supplies of goods or services or both, tax payable, tax paid
and such other particulars in such form and manner,
and within such time, as may be prescribed.]67
(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
67 Substituted vide The Finance (No. 2) Act, 2019 (No.
23 of 2019) – Brought into force w.e.f. 10th November, 2020. for “(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, in such form and manner,
and within such time, 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.”
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), other than the person referred to in the proviso thereto, 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:
Provided that every
registered person furnishing return under the proviso to sub- section (1) shall pay to the Government,
the tax due taking into account inward and outward
supplies of goods or services or both, input tax credit availed, tax payable
and such other particulars during
a month, in such form and manner,
and within such time, as may be prescribed:
Provided further
that every registered person furnishing return
under sub-section
(2) shall pay to the Government, the
tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both,
tax payable, and such other particulars
during a quarter, in such form and manner, and within such time, as may be prescribed.]68
(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 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
68 Substituted vide The Finance (No. 2) Act, 2019 (No.
23 of 2019) – Brought into force w.e.f. 10th November, 2020 for “(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.”
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 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.
(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.— [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 which may include a
self-certified reconciliation statement, reconciling the value of
supplies declared in the return
furnished for the financial year, with the audited annual financial statement
for every financial year electronically, within such time and in such form and in
such manner as may be prescribed:
Provided that the Commissioner may,
on the recommendations of the Council, by notification,
exempt any class of registered persons from filing annual return under this section:
Provided further that nothing
contained in this 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.]69 70 71 72
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
69 Inserted ―[Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend
the time limit for furnishing the annual return for such class of registered persons as may be specified therein:
Provided further
that any extension
of time limit notified by the Commissioner of State tax or the Commissioner
of Union territory tax shall be deemed to be notified by the Commissioner‖] by
The Finance (No. 2) Act, 2019 (No. 23 of 2019) –
Brought into force w.e.f.
01st January, 2020.
70 Substituted for ―31st December, 2019‖ by
Order No. 10/2019 dated 26.12.2019
71 Substituted by Order No.08/2019 dated 14.12.2019 for ―Explanation.- For the purposes of this section, it is
hereby declared that the annual return for the period from the 1st July, 2017
to the [30th November,2019] (Substituted
for ―31st August, 2019‖ vide Order No. 06/2019-Central Tax dated 28.06.2019, which was substituted for
―30th
June, 2019‖ vide Order No. 03/2018-Central Tax dated 31.12.2018, which was
substituted for ―31st March, 2019‖)
shall be furnished on or before the [30th November,
2019] (Substituted for ―31st August, 2019‖ vide Order No.
06/2019-Central Tax dated 28.06.2019, which was substituted for ―30th
June, 2019‖ vide Order No. 03/2018- Central Tax dated 31.12.2018, which was substituted for ―31st March,
2019‖).‖This explanation was inserted vide Order No. 01/2018-Central Tax dated 11.12.2018.
72
Substituted for “ 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:
[Provided that the Commissioner may, on the
recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for
furnishing the annual return for such class of
registered persons as may be specified therein:
Provided further
that any extension
of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.]
(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.
[Explanation.-
For the purposes of this section, it is hereby declared that the annual return
for the period from the 1st July,
2017 to the 31st March, 2018 shall be furnished on or before the [31st January,
2020] and the annual return for the
period from the 1st April, 2018 to the 31st March, 2019 shall be furnished on
or before the 31st March, 2020.]‖ by
The Finance Act, 2021 No. 13 Of 2021 – Brought into force w.e.f. 01st August,
2021.
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 [and to perform such other functions]73 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.
73 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
49.
Payment of tax, interest, penalty and other amounts.— (1)
Every deposit made towards tax,
interest, penalty, fee or any other amount by a person by internet
banking or by using credit or debit cards or National Electronic Fund
Transfer or Real Time Gross Settlement or by such other mode and subject
to such conditions and restrictions as may be prescribed, shall
be credited to the electronic cash ledger of such person to be maintained
in such manner as may be prescribed.
(2)
The input tax credit
as self-assessed in the return
of a registered person shall be credited to his electronic
credit ledger, in accordance with section 41, to be maintained in such manner as may
be prescribed.
(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
[Provided that the input tax credit on account of State tax shall be utilised towards
payment of integrated tax only where
the balance of the input tax credit on account of central tax is not available for payment of integrated tax;]74;
(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:
[Provided that the input tax credit
on account of Union territory tax shall be utilised towards
payment of integrated tax only where the balance
of the input tax credit
on account of central tax is not available for payment of integrated tax;]75
(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
74 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought into force w.e.f. 01st February, 2019. .
75 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
incidence of such tax to the recipient of such goods or services
or both.
Explanation.––For the purposes of this section,—
(a)
the date of credit to the account
of the Government in the authorised bank shall be deemed to be the date of deposit in the
electronic cash ledger;
(b)
the expression,—
(i)
―tax dues‖ means the tax payable
under this Act and does not include interest, fee and penalty;
and
(ii)
―other dues‖ means interest, penalty, fee or any other amount
payable under this
Act or the rules made thereunder.
(10)
[A registered person may, on the
common portal, transfer any amount of tax, interest,
penalty, fee or any other
amount available in the electronic cash ledger
under this Act, to the electronic
cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject
to such conditions and restrictions
as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.
(11)
Where any amount has been
transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said
ledger as provided in sub- section (1).]76
[49A. Utilisation of input tax credit subject
to certain conditions.— (1) Notwithstanding
anything contained in section 49, the input tax credit on account of central
tax, State tax or Union territory tax shall be utilised towards
payment of integrated tax, central tax, State tax or Union territory 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
utilisation of input tax credit.— (1)
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,
76 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
prescribe the order and manner of utilisation of the input tax credit on account
of integrated tax, central
tax, State tax or Union territory tax, as the case may be, towards payment
of any such tax.]77
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:
[Provided that the
interest on tax payable in respect of supplies made during a tax period and declared in the return for the
said period furnished after the due date in accordance
with the provisions of section 39, except where such return is furnished after commencement of any proceedings under
section 73 or section 74 in respect of the said period, shall be payable on that portion of the tax which is
paid by debiting the electronic cash ledger.]78
(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.
77 Inserted
by The Central Goods
and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought
into force w.e.f.
01st February, 2019.
78 Substituted for ―Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period
furnished after the due date in accordance with the provisions of section 39, except where such return is
furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period,
shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger‖ by
The Finance Act, 2021 (No. 13 of 2021) – Brought into force w.e.f. 01st June, 2021. It shall be deemed to have been substituted with effect from the 1st day of July, 2017.
51.
Tax deduction at source.— (1) Notwithstanding anything
to the contrary contained in this Act,
the Government may mandate,––
(a)
a
department or establishment of the Central
Government or State
Government; or
(b)
local authority; or
(c)
Governmental agencies; or
(d)
such persons or category of
persons as may be notified by the Government
on the
recommendations of
the Council, (hereafter
in this section referred to
as ―the
deductor‖), to deduct tax at the rate
of one per cent. from the payment made
or credited to the supplier
(hereafter in this section referred to as ―the deductee‖) of taxable goods or services or both, where the total value
of such supply, under a contract, exceeds two lakh and fifty thousand
rupees:
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)
[A certificate of tax deduction at
source shall be issued in such form and in such manner
as may be prescribed.]79.
(4) [******]80
79 Substituted
for ―(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.‖ by The
Finance Act, 2020 (No. 12 of 2020)
–Brought into force
w.e.f. 01st January, 2021.
80 Omitted ―(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
(5)
The deductee shall claim credit,
in his electronic cash ledger, of the tax deducted
and reflected in the return of the deductor furnished under sub-section (3) of
section 39, in such manner as may be prescribed.
(6)
If any deductor fails to pay to
the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section
(1) of section 50, in addition to the amount of tax deducted.
(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
period until the failure is rectified, subject to a maximum amount of five thousand rupees.‖
by The Finance Act, 2020 (No. 12 of 2020)
–Brought into force
w.e.f. 01st January, 2021.
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:
[Explanation: - For the purposes of this
sub-section, it is hereby declared that the due
date for furnishing the said statement for the months of October, November and December,
2018 shall be the [07th February, 2019]81.]82
[Provided that the
Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for
furnishing the statement for such class of registered persons as may be specified therein:
Provided further
that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory
tax shall be deemed to be notified
by the Commissioner.]83
(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
[Provided that the
Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual
statement for such class of registered persons
as may be specified therein:
Provided further that any extension
of time limit notified by the Commissioner of
81 Substituted for “31st January,
2019” vide Order No 02/2019-Central Tax dated 01.02.2019
82 Inserted vide Order No. 04/2018- Central
Tax dated 31.12.2018
83 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
State tax or the Commissioner of Union
territory tax shall be deemed to be notified by the Commissioner.]84
(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.
(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 or section 39]85, 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
84 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f.
01st January, 2020.
85 Substituted for ―section 37‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019.
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.
[53A. Transfer
of certain amounts.— Where any
amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or
the Union territory Goods and Services Tax Act, the Government shall, transfer to the State tax account
or the Union
territory tax account, an amount equal to the amount
transferred from the electronic cash ledger, in such manner and within such time as may be prescribed.]86
86 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
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 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 unutilised input tax credit shall be allowed in cases where
the goods exported out of India are subjected to export duty:
Provided also that no refund of input tax credit shall be allowed, if the supplier of
goods or services
or both 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 an order under sub-section (5) for final settlement of the refund claim after due verification
of documents furnished by the applicant.
(7)
The proper officer shall issue the order under sub-section (5) within sixty days
from the date
of receipt of application complete
in all respects.
(8)
Notwithstanding anything
contained in sub-section (5), the refundable amount shall, instead of being credited to
the Fund, be paid to the applicant, if such amount is relatable to—
(a)
[refund of tax paid on export of
goods or services or both or on inputs or input services
used in making
such exports;]87
(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 beenissued;
(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.
[(8A) The Government may disburse the refund of the State tax in such manner
as may be prescribed.]88
(9)
Notwithstanding anything
to the contrary contained in any judgment,
decree, order or direction of the Appellate Tribunal or any court or in any other provisions of this Act or the rules made thereunder or in any other law
for the time being in force, no refund
shall be made except in accordance with the provisions of sub-section (8).
(10)
Where any refund is due under
sub-section (3) to a registered
person who has defaulted in furnishing any return or who is required to pay any tax, interest
or penalty, which has not been stayed by any court,
Tribunal or Appellate Authority by the specified date, the proper
officer may—
(a)
withhold payment of refund due until the said person
has furnished the
87 Substituted for ―zero-rated supplies‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought
into force w.e.f. 01st February, 2019.
88 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st September,
2019 vide Notification No. 39/2019 – Central Tax dt.
31st August, 2019.
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
(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 [or in Indian
rupees wherever permitted by the Reserve Bank of
India]89, 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
clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39
89 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
for the period in which such claim for refund arises;]90
(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 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
90 Substituted for ―(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;‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019.
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.
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 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 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.
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:
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 authorise 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.
(4)
The officer authorised under
sub-section (2) shall have the power
to seal or break open the door of any premises or to break open any almirah, electronic devices, box,
receptacle in which any goods, accounts, registers
or documents of the person are suspected
to be concealed, where access to such premises, almirah, electronic devices, box or receptacle is denied.
(5)
The person from whose custody any documents are
seized under sub- section
(2) shall be entitled to make copies
thereof or take extracts therefrom in the presence of an
authorised officer
at such place and time as such officer may indicate in this behalf except
where making such copies or taking such extracts may, in the opinion of the proper
officer, prejudicially affect
the investigation.
(6)
The goods so seized under sub-section (2) shall be released,
on a provisional basis, upon execution of a bond and furnishing of a
security, in such manner and of such
quantum, respectively, as may be prescribed or on payment of applicable tax, interest
and penalty payable,
as the case may be.
(7)
Where any goods are seized under
sub-section (2) and no notice in
respect thereof is given within six
months of the seizure of the goods, the goods shall be returned to the person
from whose possession they were seized:
Provided that the
period of six months may, on sufficient cause being shown, be extended
by the proper officer for a further
period not exceeding
six months.
(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.
(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
(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 willful-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.
(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 willful-
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
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 periodof 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 of facts or information which a taxable
person is required
to declare in the return,
statement, report or any other document furnished
under this Act or the rules made thereunder, or failure to furnish
any information on being asked for, in writing, by the proper officer.
75.
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 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
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 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 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.
[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.]91
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
91 Inserted by The Central
Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought
into force w.e.f.
01st February, 2019.
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––
(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 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 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,
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 in 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.
95.
Definitions of Advance Ruling.— 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 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 Unionterritory.
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 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 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)
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,
[subject to a maximum of twenty-five crore rupees]92, 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
92 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
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 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 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, [[*****]93]94 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:
[[*****]95]96
[Provided
further that]97 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 [also that]98 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,
93 Inserted ―except for the State of Jammu and
Kashmir,‖ by The Central Goods and
Services Tax (Extension to Jammu
and Kashmir) Act, 2017 (No. 26 of 2017) – Brought into force
w.e.f. 8th July, 2017.
94 Omitted ―except for the State of Jammu and Kashmir‖ by The Finance Act, 2020 (No. 12 of 2020)– Brought into force w.e.f. 30.06.2020.
95 Inserted ―Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services Tax Appellate Tribunal constituted under this Act shall be the State
Appellate Tribunal constituted under the
Jammu and Kashmir Goods and Services Tax Act, 2017:‖ by The Central Goods and
Services Tax (Extension to Jammu
and Kashmir) Act, 2017 (No. 26 of 2017)
– Brought into force w.e.f. 8th July, 2017.
96 Omitted ―Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services Tax Appellate Tribunal
constituted under this Act shall be the State Appellate Tribunal constituted under the Jammu and Kashmir Goods and Services Tax
Act, 2017:‖ by The Finance Act, 2020 (No. 12 of 2020)– Brought into force w.e.f.
30.06.2020.
97 Substituted by
The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017
(No. 26 of 2017) received the assent
of the President on the 23rd August, 2017 whereby a new proviso was inserted
– Brought into force w.e.f. 8th July, 2017.
98 Substituted by
The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017
(No. 26 of 2017) – Brought
into force w.e.f. 8th July, 2017.
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 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 hisnominee:
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 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 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
(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––
(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, [subject
to a maximum of fifty crore rupees]99, 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
99 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
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 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 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 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 any
one or more of the following matters, namely:—
(a)
an order of the Commissioner or other authority empowered to direct
transfer of proceedings from one officer
to another officer;
or
(b)
an order pertaining to the seizure or retention
of books of account, register
and other documents; or
(c)
an order sanctioning prosecution under this Act;
or
(d)
an order
passed under section 80.
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 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.
[(1A) Any person who retains the benefit of a transaction covered under clauses
(i), (ii), (vii) or clause
(ix) of sub-section (1) and at whose instance such transaction is conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or input
tax credit availed of or passed on.]100
(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 of ten
thousand rupees or ten per cent. of the tax due from such person, whichever
is higher;
(b)
for reason of fraud or any wilful
misstatement or suppression of facts to evade tax, shall be liable to a penalty
equal to ten thousand rupees
or the tax due from such person,
whichever is higher.
(3)
Any person who––
(a)
aids or
abets any of the offences specified
in clauses (i) to
(xxi) of sub- section
(1);
(b)
acquires possession of, or in any
way concerns himself in transporting, removing,
depositing, keeping, concealing,
supplying, or purchasing or in any
other manner deals with any goods
which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder;
(c)
receives or is in any way
concerned with the supply of, or in any other
manner deals with any supply of services which he knows or has reasons
to believe are in contravention of any provisions of this Act or the rules made thereunder;
(d)
fails to appear before the officer
of 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
100 Inserted by The Finance Act, 2020 (No. 12 of 2020)
– Brought into force w.e.f.
01st January, 2021.
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.
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 [fourteen days]101 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 [fourteen days]102 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—
(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, or causes
to
commit and retain the benefits arising
out of, any of the following offences]103, namely:—
(a)
supplies any goods or services or
both without issue of any invoice, in violation
of the provisions of this Act or the rules made thereunder, with the intention
to evade tax;
(b)
issues any invoice or bill without
supply of goods or services or both in violation
of the provisions of this Act, or the rules made thereunder leading to wrongful availment
or utilisation of input tax credit or refund of tax;
(c)
[avails input tax credit using the
invoice or bill referred to in clause (b) or
fraudulently avails input
tax credit without
any invoice or bill;]104
(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 [******]105 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 concerned
with the supply
of, or in any other
103 Substituted for ―Whoever commits any of the following offences‖ by The Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January,
2021.
104 Substituted for ―(c) avails input tax credit using such invoice
or bill referred to in clause (b);‖ by The
Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January,
2021.
105 Omitted ―, fraudulently avails input tax credit‖ by The Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January, 2021.
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 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 suchoffence.
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 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 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 taxpayers.— (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 [of eligible duties]106 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 [within
such time and]107in 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
106 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)
– Brought into force w.e.f.
01st February, 2019.
107 Inserted w.e.f. 01.07.2017 by The Finance
Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 18.05.2020.
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 [within such time and]108 in such manner
as may be prescribed:
Provided that the
registered person shall not be allowed to take credit unless the said credit was admissible as 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, within such time and in such manner as may be
prescribed, subject to]109 the following conditions, namely:––
(i)
such inputs or goods are used or intended to be used for
making taxable supplies under this Act;
108 Inserted w.e.f. 01.07.2017 by The Finance
Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 18.05.2020.
109 Substituted w.e.f. 01.07.2017 for ―goods held in stock on the appointed day subject to‖ by The Finance Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 18.05.2020.
(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, within such time and in such manner as may be prescribed,]110
110 Substituted w.e.f. 01.07.2017 for ―existing law‖ by The Finance Act, 2020 (No. 12 of 2020) –Brought into force w.e.f 18.05.2020.
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:
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, within such time and in such manner as may be prescribed,
subject to]111 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, within such time and
111 Substituted w.e.f. 01.07.2017 for ―goods held in stock on the appointed day, subject to‖ by The Finance Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 18.05.2020.
in such manner as may be prescribed,
even if]112 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 [within such time
and in such manner]113 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, within such time and in
such manner as may be prescribed,
subject to]114 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
112 Substituted w.e.f. 01.07.2017 for ―credit under this Act even if‖ by The Finance Act, 2020 (No. 12 of
2020)–Brought into force w.e.f
18.05.2020.
113 Substituted w.e.f. 01.07.2017 for ―in such manner‖ by The Finance Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 18.05.2020.
114 Substituted w.e.f. 01.07.2017 for ―credit can be reclaimed subject to‖ by The Finance Act, 2020 (No. 12 of 2020)–Brought into force w.e.f
18.05.2020.
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;
(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) [*****]115;
(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;
115 Omitted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31
(iv) [*****]116;
(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 FinanceAct, 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.
[Explanation 3.—For removal of doubts, it is hereby clarified that the expression
―eligible duties and taxes‖ excludes
any cess which
has not been specified in Explanation 1 or Explanation 2 and any cess which is
collected as additional duty of customs under
sub-section (1) of section 3 of the Customs TariffAct,1975.]117
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
116 Omitted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)
– Brought into force w.e.f.
01st February, 2019.
117 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31
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‖) 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 therefrom 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 provisions.— (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
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 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 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.
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:
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:
[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.]118
(2)
The responsibility for keeping proper accounts for the inputs
or capital goods
118 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought
into force w.e.f.
01st February, 2019.
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 as evidence.— (1)
Notwithstanding anything contained in any other law for the time being in force,—
(a)
a micro film of a document or the
reproduction of the image or images embodied in such micro film (whether
enlarged or not);
or
(b)
a facsimile copy of a document; or
(c)
a statement contained in a
document and included in a printed material produced by a computer, subject
to such conditions as may be prescribed; or
(d)
any information stored
electronically in any device or media, including any hard copies made of such information,
shall be
deemed to be a
document for the
purposes of this
Act and
the rules
made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, as evidence of any contents
of the original or of any fact stated therein
of which direct
evidence would be admissible.
(2)
In any proceedings under this Act
or the rules made thereunder, where it is desired to give a statement in evidence by virtue of this section,
a certificate,—
(a)
identifying the document containing the statement and describing the manner
in which it
was produced;
(b)
giving such particulars of any
device involved in the production of that document
as may be appropriate for the purpose of showing that the document was produced
by a computer,
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
(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.
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 beforehim.
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 within 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 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 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 thinksfit.
(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.
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 (1) of section 44, sub-sections (4) and (5) of section
52]119, [sub-section (1) of section 143, except the second proviso
thereof]120, 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.
[168A. Power of Government
to
extend
time
limit
in
special circumstances.— (1)
Notwithstanding anything contained in this Act, the Government may, on the recommendations of the
Council, by notification, extend the time limit specified in, or prescribed or notified under, this Act in respect of actions which cannot be completed
or complied with due to force majeure.
(2) The power to issue notification under sub-section (1) shall include the power to
give retrospective effect to such notification from a date not earlier than the
date of commencement of this Act.
Explanation.— For the purposes of this section, the expression ―force majeure‖ means a case of war, epidemic, flood, drought,
fire, cyclone, earthquake or any other calamity caused by nature or otherwise
affecting the implementation of any of the provisions of this Act.]121
119 Inserted by
The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st
January, 2020.
120 Substituted for ―sub-section (5) of section 66, sub-section (1) of section 143‖ by The Finance Act, 2020 (No. 12 of 2020) –Brought into force w.e.f. 30.06.2020.
121 Inserted by The Taxation
and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
published in the Gazette of India, Extraordinary, Part II, Section 1, dated
29th September, 2020 - Brought into force w.e.f. 31st March,
2020.
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 any one of the following methods,
namely:—
(a)
by giving or tendering it directly
or by a messenger including a courier to the
addressee or the taxable person or to his manager or authorised representative
or an advocate or a tax practitioner
holding authority to appear in the proceedings on behalf of the taxable person or to a person
regularly employed by him in connection with the business, or to any adult member of family residing
with the taxable
person; or
(b)
by registered post or speed post
or courier with acknowledgement due, to the
person for whom it is intended or his authorised representative, if any, at his
last known place of business
or residence; or
(c)
by sending a communication to his
e-mail address provided at the time of registration or as amended
from time to time; or
(d)
by making it available on the common
portal; or
(e)
by publication in a newspaper circulating in the locality
in which the taxable person or the person to whom it is
issued is last known to have resided, carried on business or personally worked for gain; or
(f)
if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for 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.
Antiprofiteering 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.
[(3A) Where the Authority
referred to in sub-section (2), after
holding examination as required under the said
sub-section comes to the conclusion that any
registered person has profiteered under sub-section (1), such person
shall be liable to pay penalty equivalent to ten per cent. of the
amount so profiteered:
Provided that no
penalty shall be leviable if the profiteered amount is deposited within
thirty days of the
date of passing of the order by the Authority.
Explanation.—For the purposes of this section, the expression ―profiteered‖ shall mean the amount determined on account of
not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of
input tax credit to the recipient by way of commensurate reduction in the price of the goods or services
or both]122.
172.
Removal of difficulties.— (1) If any
difficulty arises in giving effect to any
122 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January,
2020.
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 [five years]123 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.
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
123 Substituted
for ―three years‖ by The Finance Act, 2020 (No. 12 of 2020) –Brought into
force
w.e.f. 30.06.2020.
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.
[See section 7]
ACTIVITIES TO BE TREATED
AS SUPPLY EVEN IF MADE WITHOUT
CONSIDERATION
1.
Permanent transfer or disposal of
business assets where input tax credit has been availed
on such assets.
2.
Supply of goods or services or
both between related persons or between distinct
persons as specified in section 25, when made in the course or furtherance of business:
Provided that gifts
not exceeding fifty thousand rupees in value in a financial year by an employer
to an employee shall not be treated
as supply of goods or services or both.
3.
Supply of goods—
(a)
by a principal to his agent
where the agent undertakes to supply such goods
on behalf of the principal; or
(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 [person]124 from a related person or from any of his other establishments outside India, in the course or furtherance of business.
124 Substituted for ―taxable person‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought
into force w.e.f. 01st February, 2019.
[See section 7]
ACTIVITIES [OR TRANSACTIONS]125 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,
[******]126 such transfer or disposal
is a supply of
125 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)
– Brought into force w.e.f.
01st February, 2019.
126 Omitted ―whether or not for a consideration,‖ w.e.f. 01st July, 2017 by The Finance Act, 2020 (No. 12
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, [******]127 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
127 Omitted ―whether or not
for a consideration,‖ w.e.f. 01st July, 2017 by The Finance Act, 2020 (No. 12
(ii)
a chartered engineer
registered with the Institution of Engineers (India);
or
(iii)
a
licensed surveyor of the respective local body of the city or town or village
or development or planning authority;
(2)
the expression "construction" includes additions, alterations, replacements or 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 technologysoftware;
(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.
[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.
7.
[Supply of goods from a place in the non-taxable territory
to another place in the non-taxable territory 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.]128
Explanation [1]129.—For the purposes of paragraph 2, the term
"court" includes District Court,
High Court and Supreme
Court.
[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.]130
128 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
129 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
130 Inserted by The Central Goods and Services
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into
force w.e.f. 01st February, 2019.
REMOVAL OF DIFFICULTY ORDERS
The following removal
of difficulty orders
have been issued:-
·
Order No. 01/2017 dated 13.10.2017
·
Order No. 01/2018 dated 11.12.2018
·
Order No. 02/2018 dated 31.12.2018
·
Order No. 03/2018 dated 31.12.2018
·
Order No. 04/2018 dated 31.12.2018
·
Order No. 01/2019 dated 01.02.2019
·
Order No. 02/2019 dated 01.02.2019
·
Order No. 03/2019 dated 08.03.2019
·
Order No. 04/2019 dated 29.03.2019
·
Order No. 05/2019 dated 23.04.2019
·
Order No. 06/2019 dated 28.06.2019
·
Order No. 07/2019 dated 26.08.2019
·
Order No. 08/2019 dated 14.11.2019
·
Order No. 09/2019 dated 03.12.2019
·
Order No. 10/2019 dated 26.12.2019
·
Order No. 01/2020 dated 25.06.2020
*****
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect Taxes and Customs Order No. 01/2017-Central Tax
New
Delhi, the 13th October, 2017
S.O…(E).– Whereas,
certain difficulties have arisen in giving effect to the provisions of the Central Goods and Services Tax
Act, 2017 (12 of 2017), hereinafter in this order referred to as the said Act, in so far as it relates to the
provisions of section 10 of the said Act;
Now, therefore, in
exercise of the powers conferred by section 172 of the said Act, the Central Government, on recommendations
of the Council, hereby makes the following Order, namely:-
1.
This Order may be called the
Central Goods and Services Tax (Removal of Difficulties) Order,
2017.
2.
For the removal
of difficulties,-
(i)
it is hereby clarified that if a
person supplies goods and/or services referred to in clause (b) of paragraph 6 of Schedule II of the said Act and
also supplies any exempt services
including services by way of extending deposits, loans or advances in so far as
the consideration is represented by
way of interest or discount, the said person shall not be ineligible for the composition scheme
under section 10 subject to the fulfilment of all other conditions specified therein.
(ii)
it is further clarified that in
computing his aggregate turnover in order to
determine his eligibility for composition scheme, value of supply of any
exempt services including services
by way of extending deposits,
loans or advances
in so far as the consideration is represented
by way of interest or discount, shall not be taken into account.
[F. No. 354/173/2017-TRU]
(Ruchi Bisht) Under Secretary to the Government
of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect Taxes and Customs Order No. 1/2018-Central Tax
New Delhi,
the 11th December,
2018
S.O…(E).––WHEREAS,
sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order
referred to as the said Act) provides
that 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;
AND WHEREAS, for
the purpose of furnishing of the annual return electronically for every financial year as referred to in
sub-section (1) of section 44 of the said Act, the electronic system to be developed
is at the advanced stage and is likely to be made operational
by the 31st January, 2019 as a result whereof, the said annual
return for the period from the 1st
July, 2017 to the 31st March, 2018 could not be furnished by the registered persons, as referred to in the
said sub-section (1) and because of that, certain difficulties have arisen
in giving effect
to the provisions of the said section;
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following
Order, to remove
the difficulties, namely:––
1.
Short title.––This Order may be called
the Central Goods
and Services Tax (Removal of Difficulties) Order,
2018.
2.
In section 44 of the Central
Goods and Services
Tax Act, 2017,
after sub- section
(2), the following Explanation shall be inserted, namely:––
―Explanation.- For the purposes of this section, it is hereby declared that the annual return for the period from the 1st July,
2017 to the 31st March, 2018 shall be furnished on or before the 31st March, 2019.‖.
[F. No. 20/06/17/2018-GST]
(Dr. Sreeparvathy S.L.) Under Secretary to the Government
of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect Taxes and Customs Order No. 02/2018-Central Tax
New Delhi, the 31st December,
2018
S.O….(E).––
WHEREAS, sub-section (4) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
(hereafter in this Order referred to as the said Act) provides that 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 invoices or invoice relating to
such debit note pertains or furnishing of the relevant
annual return, whichever
is earlier;
AND WHEREAS, sub-section (3) of section
37 of the said Act provides that-
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 tax and
interest, if any, in case there is short
payment of tax on account of such error or
omission, in 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;
AND WHEREAS,
the financial year 2017-18 was the first year of the implementation of the Goods and Services
Tax in India and the taxpayers were still in the process of familiarising themselves with the new taxation system
and due to lack of said familiarity-
(i)
the registered persons eligible to
avail input tax credit could not claim the same in terms of provisions of section 16 because of missing invoices
or debit notes referred to sub-section (4) within the stipulated
time;
(ii)
the registered persons could not
rectify the error or omission in terms of provisions of sub-section (3) of section
37 within the stipulated time,
as a result whereof
certain difficulties have arisen in giving effects to the provisions of sub-section (4) of section
16 and sub-section (3) of section 37;
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following
Order, to remove
the difficulties, namely:––
1.
Short title––This Order may be
called the Central Goods and Services Tax (Second Removal
of Difficulties) Order,
2018.-
2.
In sub-section (4) of section 16
of the said Act, the following proviso shall be inserted, namely: -
―Provided that the registered person shall be entitled to take input tax credit after the due
date of furnishing of the return under section 39 for the month of September,
2018 till the due date of furnishing
of the return under the said section for the month of March, 2019 in respect of any invoice or invoice
relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the
details of which have been uploaded
by the supplier under sub-section (1) of section 37 till the due date for
furnishing the details under sub-section (1) of said section for the month of
March, 2019.‖.
3.
In sub-section (3) of section 37
of the said Act, after the existing proviso, the following proviso shall be inserted,
namely: ––
―Provided further
that the 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, 2018 till the due date for furnishing the details under sub-
section (1) for the month of March, 2019 or for the quarter January,
2019 to March, 2019.‖.
[F. No. 20/06/16/2018-GST]
(Dr. Sreeparvathy S.L.) Under Secretary to the Government of India.
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect
Taxes and Customs
Order No.03/2018-Central Tax
New Delhi, the 31st December,
2018
S.O.(E).––WHEREAS, sub-section (1) of section
44 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
(hereafter in this Order referred to as the said Act) provides that 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;
AND WHEREAS, for
the purpose of furnishing of the annual return electronically for every financial year as referred to in
sub-section (1) of section 44 of the said Act,
through the electronic system to be developed is at the advanced stage,
it may likely to take some more time
for being made operational as a result whereof, the said annual return for the period from the 1st July,
2017 to the 31st March, 2018 could not be furnished by the registered persons, as referred to in the
said sub-section (1) and because of that, certain difficulties have arisen
in giving effect
to the provisions of the said section.
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following
Order, to remove
the difficulties, namely:––
1.
Short title.––This Order may
be called the Central Goods and
Services Tax (Third Removal
of Difficulties) Order,
2018.
2.
In section 44 of the Central
Goods and Services
Tax Act, 2017, in the Explanation,
for the figures, letters and word ―31st March, 2019‖, the figures,
letters and word ―30th June, 2019‖ shall be substituted.
[F.No.20/06/16/2018-GST]
(Dr. Sreeparvathy S.L.) Under Secretary to the Government of India.
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect
Taxes and Customs
Order No. 04/2018-Central Tax
New Delhi, the 31st December,
2018
S.O….(E). ---
WHEREAS, sub-section (4) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
(hereafter in this Order referred to as the said Act) provides that 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;
AND WHEREAS,
certain operators, were unable to obtain registration because of technical
issues being faced by them on the common portal but they collected the amount for the months of October,
November and December
2018, as a result whereof,
the statement under
sub-section (4) of section 52 of the said Act could not be furnished and because of that certain difficulties have
arisen in giving effect to the provisions of the said sub-section;
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following
Order, to remove
the difficulties, namely:
––
1.
Short title. ––This Order may be called the Central Goods and Services
Tax (Fourth Removal
of Difficulties) Order,
2018.
2.
In section 52 of the Central
Goods and Services
Tax Act, 2017, in sub- section (4), the following Explanation shall be inserted, namely:
––
―Explanation: - For the purposes of this sub-section, it is hereby declared that the due
date for furnishing the said statement
for the months of October, November and December, 2018 shall be the
31st January, 2019.‖.
[F.No.20/06/16/2018-GST]
(Dr. Sreeparvathy S.L.) Under secretary to the Government of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect Taxes and Customs ORDER No. 01/2019-Central Tax
New Delhi, the 1st February,
2019
S.O. …(E).---
WHEREAS, sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
(hereafter in this Order referred to as the said Act) provides that-
(i)
a registered person engaged in the
supply of services, other than supply of service referred
to in clause (b) of paragraph 6 of Schedule
II to the said Act, may opt for the scheme under the said sub-section;
(ii)
a person who opts for the said
scheme may supply services (other than those
referred to in clause (b) of paragraph 6 of Schedule II to the said Act), of value not exceeding ten per cent. of turnover in a
State or Union territory in the preceding financial year or five lakh rupees,
whichever is higher;
AND WHEREAS, clause
(a) of sub-section (2) of section 10 of the said Act provides that the registered person shall be
eligible to opt under sub-section (1), if, save as otherwise provided
in sub-section (1), he is not engaged
in the supply of services;
AND WHEREAS,
rendering of services
as part of the savings
and investment practice of business, by way of extending
deposits, loans or advances, in so far as the
consideration is represented by way of interest or discount, is
resulting in their ineligibility for
the aforesaid scheme, causing hardships to a lot of small businesses and
because of that, certain difficulties have arisen in giving effect to the provisions of section 10;
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017 and in supersession of
the Central Goods and Services Tax
(Removal of Difficulties) Order, 2017, No.
01/2017-Central Tax, dated the 13th October, 2017, published in the Gazette
of India, Extraordinary, vide number S.O.
3330 (E), dated the13th
October, 2017, except as respects things done or omitted to be done before such supersession, the Central
Government, on recommendations of the Council,
hereby makes the following Order,
namely: ––
1.
Short title. ––This Order may be
called the Central Goods and Services Tax (Removal of Difficulties) Order,
2019.
2.
For the removal of difficulties, it is hereby clarified that the value of supply
of exempt services
by way of extending deposits,
loans or advances
in so far as the consideration is represented by way of interest or discount, shall not be taken into account -
(i)
for determining the eligibility for composition scheme
under second proviso
to sub-section (1) of section
10;
(ii)
in computing aggregate turnover
in order to determine eligibility for composition scheme.
[F.No.20/06/16/2018 – GST (Pt. II)]
(Dr. Sreeparvathy S.L.) Under secretary to the Government of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect Taxes and Customs ORDER No. 02/2019-Central Tax
New Delhi, the 1st February,
2019
S.O….(E). ---
WHEREAS, sub-section (4) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
(hereafter in this Order referred to as the said Act) provides that 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;
AND WHEREAS,
certain operators, were unable to obtain registration because of
technical issues being faced by them on the common portal but they collected
the amount for the months of October,
November and December 2018, as a result whereof, the statement under subsection (4) of section 52 of the said Act
could not be furnished and because
of that certain difficulties have arisen in giving effect
to the provisions of the said
sub-section;
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following Order, to remove the difficulties, namely:
––
1.
Short title. ––This Order
may be called the Central
Goods and Services
Tax (Second Removal
of Difficulties) Order,
2019.
2. In section 52 of the Central Goods and Services
Tax Act, 2017, in sub-section (4), in the
Explanation, for the figures, letters
and word ―31st January, 2019‖, the figures, letters
and word ―07th February, 2019‖ shall be substituted.
[F.No.20/06/17/2018-GST]
(Dr. Sreeparvathy S.L.) Under Secretary to the Government
of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect Taxes and Customs Order No. 3/2019-Central Tax
New Delhi, the 8th March, 2019
S.O….(E). ---
Whereas, clause (c) of sub-section (3) of section 31 the Central Goods and Services Tax Act, 2017 (12 of
2017) (hereinafter referred to as the said Act) provides that 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, and therefore any person not covered by the said clause has to issue a tax invoice;
Now, Therefore, in
exercise of the powers conferred by section 172 of the said Act, the Central Government, on
recommendations of the Council, hereby makes the following Order, to remove the difficulties, namely:
––
1.
Short title. ––This Order may be called the Central Goods and Services
Tax (Third Removal
of Difficulties) Order,
2019.
2.
For the removal of difficulties, it is hereby clarified that provisions of clause
(c)
of sub-section (3) of section 31
of the said Act shall apply to a person paying tax under Notification No. 2/2019- Central Tax (Rate) dated 07.03.2019
published in the Gazette of India, Extraordinary, vide number G.S.R. No.189 (E), dated the 7th March, 2019.
[F.No. 354/25/2019-TRU]
(Dr. Sreeparvathy S.L.) Under secretary to the Government
of India
Government of India Ministry
of Finance
(Department of Revenue)
Central Board of Indirect
Taxes and Customs
Order No. 04/2019-Central Tax
New Delhi, the 29th March, 2019
S.O….. (E). –
Whereas, sub-section (2) of section 17 of the Central Goods and Services
Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the ―said Act‖)
provides that the input tax credit shall be restricted to so much of input tax as is attributable to the taxable
supplies;
And whereas
sub-section (3) of section 17 of said Act provides that the value for the purpose of sub-section (2) of section
17 of the said Act shall be such as prescribed by rules;
Now, therefore, in exercise of the powers
conferred by section
172 of the said Act, the Central Government, on
recommendations of the Council, hereby makes the following Order, namely:-
1.
Short title. -- This Order may be called the Central Goods and Services
Tax (Fourth Removal of Difficulties) Order, 2019.
2.
For the removal of difficulties, it is hereby
clarified that in case of supply of services
covered by clause (b) of paragraph 5 of Schedule II of the said Act, the amount of credit attributable to the taxable
supplies including zero rated supplies and exempt supplies shall be determined on the basis of the area of the
construction of the complex, building, civil structure or a part thereof, which is taxable
and the area which is exempt.
3.
This Order shall come into force with effect from the 1st day of April,
2019.
[F. No. 354/32/2019-TRU]
(Pramod Kumar) Deputy Secretary
to the Government of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect Taxes and Customs Order No. 5/2019-GST
New Delhi, the 23rd April,
2019
S.O (E). ––WHEREAS,
sub-section (2) of section 29 of the Central Goods and
Services Tax Act, 2017 (hereinafter referred
to as the „CGST Act‟) provides for cancellation of registration by proper officer
in situations described in clause (a) to clause
(e) as under: -
(a)
a registered person has
contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b)
a person paying tax under section
10 has not furnished returns for three consecutive tax periods; or
(c)
any registered person, other than
a person specified in clause (b), has not furnished returns
for a continuous period of six months;
or
(d)
any person who has taken voluntary
registration under sub-section (3) of section
25 has not commenced business within six months from the date of registration; or
(e)
registration has been obtained
by means of fraud, willful
misstatement or suppression of facts:
Provided that the
proper officer shall not cancel the registration without giving the person an opportunity of being heard.
AND WHEREAS,
sub-section (1) of section 169 of the CGST Act provides for service
of notice (opportunity of being heard);
clause (c) and (d) of said sub-section are as under:
-
……….
(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
………
AND WHEREAS,
sub-section (1) of Section 30 provides for revocation of cancellation of the registration within thirty days from the date of service of the cancellation order.
AND WHEREAS,
sub-section (1) of section 107 of the CGST Act provides for filing appeal by any person aggrieved by any decision
or order passed by an adjudicating
authority within three months from the date on which the said decision or order is communicated to such person and
sub-section (4) of section 107 of the CGST Act
empowers the Appellate Authority that it may, if he is satisfied that the
appellant was prevented by sufficient
cause from presenting the appeal within the
aforesaid period of three
months, allow it to be presented within a further period of one month.
AND WHEREAS, a
large number of registrations have been cancelled under sub-section (2) of section 29 of the CGST Act by the proper officer
by serving notices
as per clause (c) and clause
(d) of sub-section (1) of section 169 of the CGST Act and the period of thirty days provided for
revocation of cancellation order in sub-section (1) of section 30 of the CGST Act, the period for filing appeal under
section (1) of section 107 of the
CGST Act and also the period of condoning the delay provided in sub-section (4) of Section 107 of the CGST Act has
elapsed; the registered persons whose registration have been cancelled under sub-section (2) of section 29 of the
CGST Act are unable to get their cancellation of registration revoked
despite having fulfilled all the requirements for revocation of cancellation of registration. GST being a
new Act, these taxpayers were not
familiar with the manner of service of notice by e-mail or making available at portal in comparison to earlier regime where manual service of notice was provided, as a result whereof certain
difficulties have arisen
in giving effects
to the provisions of sub- section (1) of section
30 of the CGST Act;
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following Order, to remove the difficulties, namely:
––
Short title.–This
Order may be called the Central Goods and Services Tax (Fifth Removal
of Difficulties) Order,
2019.-
In sub-section (1)
of section 30 of the said Act, the following proviso shall be inserted,
namely: -
―Provided that the
registered person who was served notice under sub-section (2) of section 29 in the manner as provided
in clause (c) or clause (d) of sub-section (1) of section 169 and who could not reply to the said notice, thereby resulting
in cancellation of his registration certificate and is
hence unable to file application for revocation of cancellation of registration under sub-section (1) of section 30
of the Act, against such order passed
up to 31.03.2019, shall be allowed to file application for revocation of cancellation of the registration not later than 22.07.2019.‖.
[F. No. 20/06/16/2018-GST]
(Ruchi Bisht) Under Secretary to the Government of India
Government of India Ministry of Finance (Department of Revenue)
Central Board of Indirect Taxes and Customs
Order
No. 6/2019-Central Tax
New Delhi, the 28th June, 2019
S.O...(E).––WHEREAS,
sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order
referred to as the said Act) provides
that 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;
AND WHEREAS,
for the purpose of furnishing of the annual return
electronically for every financial year as referred to in sub-section
(1) of section 44 of the said Act,
certain technical problems are being faced by the taxpayers as a result
whereof, the said annual return for
the period from the 1st July, 2017 to the 31st March,
2018 could not be furnished by the
registered persons, as referred to in the said sub-section (1) and because of that, certain difficulties have
arisen in giving effect to the provisions of the said section.
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following Order, to remove the difficulties, namely:––
1.
Short title.––This Order may be called
the Central Goods and Services
Tax (Sixth Removal
of Difficulties) Order,
2019.
2.
In section 44 of the Central Goods
and Services Tax Act, 2017, in the Explanation,
for the figures, letters and word ―30th June, 2019‖, the figures,
letters and word ―31st August, 2019‖ shall be substituted.
[F.No.20/06/17/2018-GST]
(Ruchi Bisht) Under Secretary to the Government
of India
Government of India Ministry of Finance (Department of Revenue)
Central Board of Indirect Taxes and Customs
Order
No. 7/2019-Central Tax
New Delhi, the 26th August,
2019
S.O.(E).––WHEREAS,
sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order
referred to as the said Act) provides
that 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;
AND WHEREAS,
for the purpose of furnishing of the annual return
electronically for every financial year as referred to in sub-section
(1) of section 44 of the said Act,
certain technical problems are being faced by the taxpayers as a result
whereof, the said annual return for
the period from the 1st July, 2017 to the 31st March,
2018 could not be furnished by the
registered persons, as referred to in the said sub-section (1) and because of that, certain difficulties have
arisen in giving effect to the provisions of the said section.
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council, hereby
makes the following Order, to remove the difficulties, namely:––
1.
Short title.––This Order may be called
the Central Goods and Services
Tax (Seventh Removal
of Difficulties) Order,
2019.
2.
In section 44 of the Central Goods
and Services Tax Act, 2017, in the Explanation, for the figures,
letters and word ―31st August,
2019‖, the figures,
letters and word ―30th November,
2019‖ shall be substituted.
[F.No.20/06/07/2019-GST]
(Ruchi Bisht) Under Secretary to the Government of Indi
Government of India Ministry of Finance (Department of Revenue)
Central Board of Indirect Taxes and Customs
Order No. 08/2019-Central Tax
New Delhi, the 14th November, 2019
S.O.(E).––WHEREAS, sub-section (1) of section
44 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
(hereafter in this Order referred to as the said Act) provides that 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;
AND WHEREAS, for the purpose of furnishing of the annual return
electronically for every
financial year as referred to in sub-section (1) of section 44 of the said Act,
certain technical problems are being
faced by the taxpayers as a result whereof, the said annual return for the period from the 1st
July, 2017 to the 31st March, 2018 and for the period from 1st April, 2018 to the 31st
March, 2019 could not be furnished by the registered persons, as referred to in the said sub-section (1)
and because of that, certain difficulties have arisen in giving effect to the provisions of the said section.
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council,
hereby makes the following Order,
to remove the difficulties, namely:––
1.
Short title.––This Order may be called the Central
Goods and Services
Tax (Eighth Removal
of Difficulties) Order, 2019.
2.
For the Explanation in section
44 of the Central Goods and Services Tax Act, 2017, the following Explanation shall be substituted, namely: –
―Explanation.- For the purposes of this section, it is hereby declared that the annual return
for the period from the 1st July, 2017 to the 31 st
March, 2018 shall be furnished on or before
the 31st December, 2019 and the annual return for the period from
the 1 st April, 2018 to the 31st March,
2019 shall be furnished on or before the 31st March, 2020. ‖
[F. No. 20/06/17/2019-GST]
[F.No.20/06/17/2019-GST]
(Ruchi Bisht) Under Secretary to the Government of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect
Taxes and Customs
Order No. 09 /2019-Central Tax
New Delhi, the 3rd December, 2019
S.O….(E).––WHEREAS,
sub-section (1) of section 112 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order
referred to as the said Act) provides
that 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;
AND WHEREAS,
sub-section (3) of section 112 of the said Act provides that 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;
AND WHEREAS,
section 109 of the said Act provides for the constitution of the Goods and Services
Tax Appellate Tribunal
and Benches thereof;
AND WHEREAS, for
the purpose of filing the appeal or application as referred to in sub-section (1) or sub-section (3) of
section 112 of the said Act, as the case may be, the Appellate Tribunal and its Benches are yet to be constituted in
many States and Union territories under section 109 of the said Act as a result whereof,
the said appeal or application could not be filed within
the time limit specified in the said sub-sections, and
because of that, certain difficulties
have arisen in giving effect to the provisions of the said section; NOW, THEREFORE, in exercise of
the powers conferred by section 172 of the Central Goods and Services
Tax Act, 2017, the Central
Government, on the recommendations of the Council,
hereby makes the following Order, to remove the difficulties, namely:––
1. Short title.––This Order may be called the Central Goods and Services Tax
(Ninth Removal of Difficulties) Order,
2019.
2.
For the removal of difficulties,
it is hereby clarified that for the purpose of
calculating,-
(a)
the ―three months from the date on
which the order sought to be appealed against
is communicated to the person preferring the appeal‖ in sub-section (1) of
section 112, the start of the three
months period shall be considered to be the later of the following dates:-
(i)
date of communication of order; or
(ii) the date on which the President or the State President, as the case may be, of the Appellate Tribunal
after its constitution under section 109, enters office;
(b)
the ―six months from the date on
which the said order has been passed‖ in sub-section (3) of section
112, the start of the six months period shall be considered to be the later of the following dates:-
(i)
date of communication of order; or
(ii)
the date on which the President or
the State President, as the case may be, of the Appellate
Tribunal after its constitution under section 109, enters office.
[F. No. 20/06/07/2019-GST]
(Ruchi Bisht) Under Secretary to the Government
of India
Government of India Ministry of Finance (Department of Revenue)
Central Board of Indirect Taxes and Customs
Order No. 10/2019-Central Tax
New Delhi, the 26th December,
2019
S.O.(E).––WHEREAS, sub-section (1) of section
44 of the Central Goods and Services Tax Act, 2017 (12 of 2017)
(hereafter in this Order referred to as the said Act) provides that 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;
AND WHEREAS, for
the purpose of furnishing of the annual return electronically for every financial year as referred to in
sub-section (1) of section 44 of the said Act, certain technical problems are being faced by the taxpayers as a result
whereof, the said annual return for
the period from the 1st July, 2017 to the 31st March,
2018 could not be furnished by the
registered persons, as referred to in the said sub-section (1) and because of
that, certain difficulties have arisen
in giving effect
to the provisions of the said section.
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on recommendations of the Council,
hereby makes the following Order,
to remove the difficulties, namely:––
1.
Short title.––This Order may be called the Central
Goods and Services
Tax (Tenth Removal
of Difficulties) Order,
2019.
2.
In section 44 of the Central
Goods and Services
Tax Act, 2017, in the Explanation, for the figures, letters and word ―31st December, 2019‖, the figures, letters and word ―31st January,
2020‖ shall be substituted.
[F. No. 20/06/09/2019-GST]
(Ruchi Bisht) Under Secretary to the Government
of India
Government of India Ministry of Finance (Department of Revenue)
Central
Board of Indirect
Taxes and Customs
Order No. 01/2020-Central Tax
New Delhi, the 25th June, 2020
S.O. .....(E).––
WHEREAS, sub-section (2) of section 29 of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the said Act) provides for cancellation of registration by proper officer
in situations described in clauses (a) to (e) as under: -
(a)
a registered person has
contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b)
a person paying tax under section
10 has not furnished returns for three consecutive tax periods; or
(c)
any registered person, other than
a person specified in clause (b), has not furnished returns
for a continuous period of six months;
or
(d)
any person who has taken voluntary
registration under sub-section (3) of section 25 has not commenced business within six
months from the date of registration;
or
(e)
registration has been obtained
by means of fraud, willful
misstatement or suppression of facts:
Provided that the proper
officer shall not cancel the registration without
giving the person
an opportunity of being
heard.
AND WHEREAS, sub-section (1) of section 169 of the said Act provides
for service of notice (opportunity of being heard);
clauses (c) and (d) of said sub-section are as under:
-
……….
(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
………;
AND WHEREAS, sub-section (1) of section 30 of the said Act provides
for application for revocation of cancellation of the registration within thirty days from the date
of service
of the cancellation order;
AND WHEREAS,
sub-section (1) of section 107 of the said Act provides for filing appeal by any person aggrieved by any
decision or order passed by an adjudicating authority within three months from the date on which the said decision or
order is communicated to such person
and sub-section (4) of section 107 of the said Act empowers the Appellate Authority that it may, if he is satisfied
that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three
months, allow it to be presented within
a further period
of one month;
AND WHEREAS, a
large number of registrations have been cancelled under sub- section
(2) of section 29 of the said Act by the
proper officer by serving
notices as per clause
(c) and clause (d) of sub-section (1)
of section 169 of the said Act and the period of thirty days provided for application for revocation of cancellation
order in sub-section (1) of section
30 of the said Act, the period for filing appeal under section (1) of section
107 of the said Act and also the period of condoning
the delay provided
in sub-section (4) of Section
107 of the said Act has elapsed;
the registered persons
whose registration have been cancelled under clause (b) or clause (c)
of sub-section (2) of section 29 of the said Act are unable to get their cancellation of registration revoked
despite having fulfilled
all the requirements for revocation of cancellation of registration;
the said Act being a new Act, these
taxpayers could not apply for revocation of cancellation within the specified
time period of thirty days from the
date of service of the cancellation order, as a result whereof certain
difficulties have arisen
in giving effects
to the provisions of sub-section (1) of section
30 of the said Act;
NOW, THEREFORE, in
exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017, the Central
Government, on the recommendations of the Council,
hereby makes the following Order, to remove the difficulties, namely: ––
1. Short title.- This Order may be called the Central
Goods and Services Tax
(Removal of Difficulties) Order,
2020.-
2.
For the removal of difficulties, it is hereby clarified that for the purpose of calculating
the period of thirty days for filing application for revocation of cancellation
of registration under sub-section (1)
of section 30 of the Act for those registered persons who were served notice under clause (b) or
clause (c) of sub-section (2) of section 29 in the manner as provided in clause (c) or clause (d) of sub-section
(1) of section 169 and where cancellation
order was passed up to 12th June, 2020, the later of the following
dates shall be considered:-
a)
Date of service
of the said cancellation order; or
b)
31st
day of August, 2020.
[F. No. CBEC-20/06/09/2019-GST]
(Pramod Kumar) Director, Government of India
Comments