Gujarat Sales Tax (Amendment) Act, 1985*
| [Gujarat Act No. 14 of 1985] | [1st August, 1985] |
An Act further to amend the Gujarat Sales Tax Act, 1969.
It is hereby enacted in the Thirty-sixth Year of the Republic of India as follows:-
* Received the Assent of the Governor on the 1st August, 1985 is hereby published for general information.
1. Short title and commencement.- (1) This Act may be called the Gujarat Sales Tax (Amendment) Act, 1985.
(2) It shall come into force on such date as the State Government, may by notification in the Official Gazette, appoint.
2. Amendment of section 2 of Guj. 1 of 1970.- In the Gujarat Sales Tax Act, 1969 (Guj. 1 of 1970) (hereinafter referred to at "the principal Act"), in section 2,-
(1) in clause (4), the words "but does not include any activity in the nature of mere service or profession" shall be deleted;
(2) in clause (10), for the portion beginning with the word "dealer" and ending with the words "or to other persons", the following portion shall be substituted, namely:-
"‘dealer’ means any person who buys or soils goods in connection with his business, and includes,-
(a) the Central Government,
(b) a State Government,
(c) any local authority,
(d) any society, club or other association of persons which buys goods from or sells goods to its members or to other persons,
(e) any person who transfers, otherwise than in pursuance of a contract, property in any goods for cash, deferred payment or other valuable consideration,
(f) any person who transfers property in goods (whether as goods or in some other form) involved in the execution of a works contract,
(g) any person who delivers goods on hire-purchase or any system of payment by instalments,
(h) any person who transfers the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration,
(i) any unincorporated association or body of persons which supplies goods to a member thereof for cash, deferred payment or other valuable consideration,
(j) any person who supplies, by way of or as part of any service or in any other manner whatsoever, goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration;"
(3) after clause (10), the following clause shall be inserted, namely:-
"(10-A) ‘designated day’ means the date of the coming into force of the Gujarat Sales Tax (Amendment) Act, 1985;";
(4) for clause (19), the following clause shall be substituted, namely:-
"(19) ‘place of business’ means any place where a dealer carries on business and includes a warehouse, godown or other place where a dealer stores his goods and any place where he keeps his books of accounts;";
(5) in clause (22), for the words "when such cost is separately charged", the following shall be substituted, namely:-
"when such cost is separately charged and includes,-
(a) in relation to,-
(i) the transfer, otherwise than in pursuance of a contract, of property in any goods,
(ii) the supply of goods by any unincorporated association or body of persons to a member thereof,
(iii) the 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 (whether or not intoxicating),
the amount of cash, deferred payment or other valuable consideration paid or payable therefor;
(b) in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, such amount as is arrived at by deducting from the amount of valuable consideration paid or payable by a person for the execution of such works contract the amount representing labour charges for such execution;
(c) in relation to the delivery of goods on hire purchase or any system of payment by instalments, the amount of valuable consideration payable by a person for such delivery;";
(6) for clause (28), the following clause shall be substituted, namely:-
"(28) ‘sale’ means a sale of goods made within the State for cash or deferred payment or other valuable consideration and includes,-
(a) any supply by a society or club or an association to its members of payment of a price or of fees or subscription,
(b) transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration,
(c) transfer of property in goods (whether as goods or in some other form) involved in execution of a works contract,
(d) delivery of goods on hire purchase or any system of payment by instalments,
(e) supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration,
(f) 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 (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration,
but does not include a mortgage, hypothecation, charge or pledge and the words "fell", "buy" and "purchase" with all their grammatical variations and cognate expressions shall be construed accordingly.
Explanation.-For the purposes of this clause except sub-clauses (c) and (d), "sale" within the State includes a sale determined to be inside the State in accordance with the principles formulated in sub-section (2) of section 4 of the Central Sales Tax Act, 1956 (LXXIV of 1956);"
(7) for clause (29), the following clause shall be substituted, namely:-
"(29) ‘sale price’ means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the dealer in respect of the goods at the time or of before delivery thereof, other than the coat of insurance for transit or of installation when such cost is separately charged and includes,-
(a) in relation to-
(i) the transfer, otherwise than in pursuance of a contract of property in any goods,
(ii) the transfer of the right to use any goods for any purpose (whether or not for a specified period),
(iii) the supply of goods by any unincorporated association or body of persons to a member thereof,
(iv) the supply by way of or as pure of any service or in any other manner whatsoever, of goods for food or any other article for human consumption or any drink (whether or not intoxicating),
the amount of cash, deterred payment or other valuable consideration paid or payable therefor;
(b) in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for the execution of such works contract, the amount representing labour charges for such execution;
(c) in relation to the delivery of goods on hire-purchase or any system of payment by instalments, the amount of valuable consideration payable to a person for such delivery;"
(8) after clause (30-B), the following clause shall be inserted, namely:-
"(30-C) ‘specified sale’ means the 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, and unless the context otherwise requires, the words ‘sell’, ‘buy’ and ‘purchase’ with all their grammatical variations and cognate expressions shall be construed accordingly;";
(9) in clause (36), the word "and" appearing at the end, shall he deleted;
(10) after clause (36), the following clause shall be inserted, namely:-
"(36-A) ‘turnover of specified sale means the aggregate of the amounts of sale price received or receivable by a dealer referred to in sub-clause (h) of clause (10) in respect of any specified sale made, during a given period."
3. Insertion of new section 3A in Guj. 1 of 1970.- In the principal Act, after section 3 the following section shall be inserted, namely:-
"3A. Liability of tax on the transfer of right to use any goods.- (1) Every dealer referred to in sub-clause (h) of clause (10) of section 2, whose turnover of specified sales made during.
(i) the year immediately preceding the year within which the desiganted day falls, or
(ii) the year commencing on the first day of the year within which the designated day falls,
has exceeded or exceeds Rs. 50,000 shall, until such liability ceases under sub-clause (3), be liable to pay tax under this action on his turnover of specified sales made on or after the designated day:
Provided that a dealer to whom clause (i) does not apply ??? clause (ii) applies and whose turnover of all specified sale first exceeds the limit specified in this sub-section after the designated day, shall not be liable to pay tax in respect of specified sales which lake place upto the time when his turnover of specified sales as computed from the first day of the year in which the designated day falls first exceeds the limit specified in this section.
(2) Every dealer whose turnover of all specified sales made during any year being a year subsequent to the year mentioned in sub-section (1) first exceeds the limit specified in that sub-section shall, until such liability ceases under sub-section (3), be liable to pay tax under this section with effect on and from the first day of that year:
Provided that the dealer shall not he liable to pay tax in respect of specified sales as take place commencing on the first day of any such year up to the time when his turnover of specified sales as computed from the said first day, first exceeds the limit specified in sub-section (1).
(3) Every dealer, who has become liable to pay tax under this section, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax on specifier sales other than the tax already levied or leviable, shall until his turnover of specified sales against first exceeds the limit specified in sub-section (1), cease:
Provided that where the dealer becomes liable to pay tax again in the same year in which he ceased to be liable as aforesaid, then, in respect of such specified sales as take place during the period commencing on the date of the cession of liability to pay tax upto the time when his turnover of specified sales first exceeds the limit specified in sub-section (1), no tax shall be payable.
(4) For the purpose of Calculating the limit of turnover for liability to tax under this section,-
(a) except as otherwise expressly provided, the turnover of all specified sales shall betaken into account whether such specified idles are taxable or not;
(b) the tars over shall include all specified sales made by a dealer on his own account and also on behalf of principals mentioned in his account.
(5) There shall he levied a sales tax on the turnover of specified sales of goods specified in Schedule IV at such rate not exceeding five paise in rupee as the State Government may, by notification in the Official Gazette, specify, and different rates may be specified for different goods mentioned in that Schedule or different classes of dealers.".
4. Amendment of section 4A of Guj. 1 of 1970.- In the principal Act, in section 4A, in sub-section (1), for the words and figures "from every dealer liable to pay tax under section 3 or under section 4", the words, figures and letter "from every dealer liable to pay tax under section 3 or under section 3A or under section 4" shall be substituted.
5. Amendment of section 15A of Guj. 1 of 1970.- In the principal Act, in section 15A, for the words "one paise in the rupee", the words "two paise in the rupee" shall be substituted.
6. Amendment of section 26 of Guj. 1 of 1970.- In the principal Act, in section 26, in sub-section (6), for the words and figure "notwithstanding anything contained in section 3, be liable to pay tax on the sales or purchases" the words, figures and letter "notwithstanding anything contained in section 3 or 3A, be liable to pay tax on the sales or the specified sales or the purchases" shall be substituted.
7. Amendment of section 29 of Guj. 1 of 1970.- In the principal Act, in section 29,-
(1) in sub-section (1) after the words and figure "under section 3", the words, figure and letter "or under section 3A" shall be inserted;
(2) in sub-section (7),-
(a) in clause (b), the word "or" shall be added at the end;
(b) after clause (b), the following clause shall be inserted, namely:-
"(c) the turnover of specified sales of a dealer has not, during the preceding year, exceeded the limit specified in sub-section (1) of section 3A".
8. Amendment of section 44 of Guj. 1 of 1970.- In the principal Act, in section 44,-
(1) for the words "any turnover of sales or turnover of purchases" the words "any turnover of sales or turnover of specified sales or turnover of purchases" shall he substituted;
(2) in clause (a), for the words "such sales or purchases" the words "such sales or specified sales or purchases" shall be substituted.
9. Amendment of section 49 of Guj. 1 of 1970.- In the principal Act, in section 49, in sub-section (2), for the words "exempt any specified class of sales or purchases," the words "exempt any specified class of sales or of specified sales or of purchases" shall be substituted.
10. Amendment of section 50 of Guj. 1 of 1970.- In the principal Act, in section 50, in sub-section (1),-
(a) for the words "If any specified class of sales or purchases" the words "If any specified class of sates or of specified sales or of purchases" shall be substituted;
(b) for the words and figure "not with standing anything contained in section 3, be liable to pay tax on such sale or purchase", the words, figures and letter "notwithstanding anything contained in section 3 or section 3A, be liable to pay tax on such sale, specified sale or purchase" shall be substituted.
11. Amendment of section 55 of Guj. 1 of 1970.- In the principal Act, in section 55, in sub-section (1), for the words "of any specified class of sales or purchases", the words "of any specified class of sales or specified sales or purchases" shall be substituted.
12. Amendment of section 56 of Guj. 1 of 1970.- In the principal Act, in section 56, in sub-section (1) for the words "in respect of sale of any goods," the words "in respect of sale or specified sale of any goods" shall be substituted.
13. Amendment of section 57 of Guj. 1 of 1970.- In the principal Act, in section 57,-
(1) in clause (b), for the words "turnover of sales", the words "turnover of sales or specified, sales" shall be substituted;
(2) for the words "from the date of sale", the words "from the date of sale or specified sale", shall be substituted.
14. Amendment of section 58 of Guj. 1 of 1970.- In the principal Act, in section, 58,-
(1) in sub-section (2), for the brackets and words "(including records of sales or purchases)", the brackets and words "(including records of sales, specified sales or purchases)" shall be substituted;
(2) in sub-section (3), for the words "their purchases, sales or deliveries of goods", the words "their purchases, sales, specified sales or deliveries of goods" shall be substituted.
15. Amendment of section 61 of Guj. 1 of 1970.- In the principal Act, in section 59,-
(1) in sub-section (1), for the words "or to sales, purchases and deliveries of goods", the words "or to sales, specified sales, purchases and deliveries of goods" shall he substituted;
(2) in sub-section (2), for the words "or to purchases, sales and deliveries of goods", the words "or to sales, specified sales, purchases and deliveries of goods" shall be substituted.
16. Amendment of section 61A of Guj. 1 of 1970.- In the principal Act, in section 61A, in clause (a), for the words "turnover of sales or turnover of purchases", the words "turnover of sales or turnover of specified sales or turnover of purchases" shall be substituted.
17. Amendment of section 61B of Guj. 1 of 1970.- In the principal Act, in section 61B, in sub-section (1), for the words "transactions of sales or purchases", the words "transactions of sales, specified sales or purchases" shall be substituted.
18. Amendment of section 61C of Guj. 1 of 1970.- In the principal Act, in section 61C, in sub-section (1), in the second proviso, for the words "turnover of sales or turnover of purchases", the words "turnover of sales or turnover of specified sales or turnover of purchases" shall be substituted.
19. Amendment of section 61G of Guj. 1 of 1970.- In the principal Act, in section 61G, in sub-section (1), for the words "turnover of sales or turnover of purchase", the word "turnover of sales or turnover of specified sales or turnover of purchases" shall be substituted.
20. Amendment of section 62 of Guj. 1 of 1970.- In the principal Act, in section 62,-
(1) in sub-section (1),-
(a) for clause (c), the following clause shall he substituted, namely:-
"(c) any transaction is a sale or specified sale or purchase, or"
(b) in clause (e), for the words "sale or purchase", the words "sale, specified sale or purchase" shall be substituted;
(2) in sub-section (2), for the words "any sale or purchase", the words "any sale, specified sale or purchase" shall he substituted.
21. Amendment of section 81 of Guj. 1 of 1970.- In the principal Act, in section 81, in sub-section (1), for the words "on the sale, purchase or turnover" occurring at two places, the words "on the sale, specified sale, purchase or turnover" shall be substituted.
22. Amendment of Schedule I of Guj. 1 of 1970.- In the principal Act, in Schedule I, after entry 68, the following entry shall be added, namely:-
| 1 | 2 | 3 |
| "69 | All kinds of hurricane lanterns and hurricane lamps and spare parts and accessories thereof." | ** |
23. Amendment of Schedule II Part A of Guj. 1 of 1970.- In the principal Act in Schedule II Part A,-
(1) in entry 15, in columns 3 and 4, for the words "Six paise in the rupee", the words "Ten paise in the rupee" shall be substituted;
(2) in entry 27, in columns 3 and 4, for the words "Five paise in the rupee", the words ‘Six paise in the rupee’ shall be substituted;
(3) in entry 32, in columns 3 and 4, for the words "Five paise in the rupee", the words "Six paise in the rupee" shall be substituted;
(4) in entry 32-A, in column 3 and 4, for the word "Do", the words "Six paise in the rupee" shall be substituted;
(5) for entry 33, the following entry shall be substituted, namely:-
| 1 | 2 | 3 | 4 |
| "33 | Sewing machines not fitted with accessory motor and spare parts and accessories thereof. | Four paise in the rupee. | Four paise in the rupee". |
(6) in entry 38, in columns 3 and 4, for the words "Eight paise in the rupee", the words "Ten paise in the rupee", shall be substituted;
(7) for entry 43, the following entries shall be substituted, namely:-
| 1 | 2 | 3 | 4 |
| "43 | Timber (excluding firewood and wood specified in entry 6 of Schedule I) | Ten paise in the rupee. | Ten paise in the rupee. |
| 43-A | Bamboo whether whole or split. | Six paise in the rupee. | Six paise in the rupee." |
(8) in entry 58, in columns 3 and 4, for the words "Twenty paise in the rupee", the words "Ten paise in the rupee" shall be substituted;
(9) for entry 76, the following entry shall be substituted, namely:-
| 1 | 2 | 3 | 4 |
| "76 | Mechanical water coolers, refrigerators and deep freezers and component parts and accessories thereof. | Twenty paise in the rupee. | Twenty paise in the rupee." |
(10) in entry 77, in columns 3 and 4, for the words "Twelve paise in the rupee", the words "Fifteen paise in the rupee" shall be substituted:
(11) for entry 80-A, the following entry shall be substituted, namely:-
| 1 | 2 | 3 | 4 |
| ‘80A | (1) Television sets and antennae (2) Television cameras, television monitors, close circuit television sets, cameras, video television, video cassettes, and video players and parts, accessories and components of any of them. | Fifteen paise in the rupee. Twenty paise in the rupee. | Fifteen paise in the rupee. Twenty paise in the rupee." |
24. Amendment of Schedule III of Guj. 1 of 1970.- In the principal Act, in Schedule III,-
(1) for entry 3, the following entries shall be substituted, namely:-
| 1 | 2 | 3 | 4 |
| "3 | Shaving cream, hair brush and tooth brush. | Five paise in the rupee. | Three paise in the rupee. |
| 3-A | Hair combs, hair pins, razor and razor blade, shaving brush, shaving soap and shaving stick. | Three paise in the rupee. | Three paise in the rupee" |
(2) in entry 4-A, in column 3, for the words "Five paise in the rupee" the words "Three paise in the rupee" shall be substituted;
(3) for entry 12, the following entries shall he substituted, namely:-
| 1 | 2 | 3 | 4 |
| "12. | Toilet articles, that is to say, all articles used in cleansing or grooming parts of human body, including hair cream, hair tonic, shampoo but excluding soap. | Twelve paise in the rupee. | Three paise in the rupee. |
| 12-A | Dentifrices of all kinds excluding tooth powder. | Five paise in the rupee. | Three paise in the rupee. |
| 12-B | Tooth powder. | Three paise in the rupee. | Three paise in the rupee". |
25. Insertion of new Schedule IV in Guj. 1 of 1970.- In the principal Act, after Schedule-III, the following Schedule shall be inserted, namely:-
"SCHEDULE-IV
(See section 3-A)
Goods, the transfer of the right to use, which is subject to sales tax.
| Sr. No. | Description of goods |
| 1. | Air-conditioning plant. |
| 2. | Cinematographic and photographic equipments and appliances including studio equipments, cameras, projectors, enlarging lenses. |
| 3. | Cinematographic film. |
| 4. | Computers. |
| 5. | Electric fans. |
| 6. | Electrical goods. |
| 7. | Furniture. |
| 8. | Motor vehicles as defined in the Motor Vehicles Act, 1939. |
| 9. | Plant and Machinery. |
| 10. | Refrigators. |
| 11. | Samiyana |
| 12. | Sawing machines. |
| 13. | Surgical equipments and machinery. |
| 14. | Typewriters. |
| 15. | Television, Video Cassette, Recorders, Vedio Cassette players. |
| 16. | Utencils. |
| 17. | X-Ray Machines. |
26. Validation of imposition and collection of tax on certain sales.- (1) Notwithstanding any judgment, decree or order of any court, tribunal or other authority, all taxes levied, assessed, or collected or purporting to have been levied assessed or collected under this Act on the transactions by way of supply of the nature referred to in sub-clause (f) of clause (28) of section 2 of the principal Act as amended by this Act during the period commencing on 2nd February, 1983 and ending on the commencement of this Act, shall be deemed to have been validly levied, assessed or collected in accordance with law as if the provisions of the principal Act as amended by this Act had been in force at all material times when such taxes were levied, assessed or collected, and accordingly,-
(a) no suit or other proceeding shall be maintained or continued in any court or before any tribunal or authority for the refund of any such tax paid under the principal Act;
(b) no court, tribunal or other authority shall enforce a decree or order directing the refund of any such tax paid under the principal Act;
(c) any such tax levied or assessed under the principal Act before the commencement of this Act but not collected before such commencement may be recovered (after assessment of such tax where necessary) in the manner provided by or under the principal Act as amended by this Act.
(2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall be construed as preventing any person,-
(a) from questioning in accordance with the provisions of the principal Act as amended by this Act and the rules made thereunder the assessment of any such tax for any period, or
(b) from claiming refund of any such tax paid by him in excess of the amount due from him under the principal Act and the rules made thereunder.