Arunachal Pradesh act 007 of 2017 : The ARUNACHAL PRADESH GOODS AND SERVICES TAX ACT, 2017

73

THE ARUNACHAL PRADESH GOODS AND

SERVICES TAX ACI, 2OT7

(ACT. NO. 7 0F 2017)

( Received the Assent of Governor on l5th June, 20t 7 ond published in the Arunochol Prodesh E.O. Gozette No. .l76 Vol. XXIV doted 24th June, 20I7) An

Act

lo moke o provision for levy ond colleclion of tax on intro-Stote supply of goods or services or both by the Stote ofArunochol Prodesh ond the motters connected

therewith or inci dento I thereto

BE it enacted by Legisloture of

Arunochol Pradesh in the Siw-eighth Yeor of the Republic of lndio os follows:-

CHAPTER^{- I}

PRELIMINARY

I . ( I ) This Act moy be colled the Arunochol Prodesh Goods ond Services Tox Act, 2017.

(2) lt extends to the whole of the Arunochol Prodesh.

(3) lt sholl come into lorce on such dote os the Stote Government moy, by notificotion in the Officiol Gozette, oppoint:

Provided thot different dotes moy be oppointed for different provisions of this Act ond ony reference in ony such provision to the commencement oI this Act sholl be construed os o reference to the coming into force of thot provision.

2. ln this Act, unless the context other- wise requires,-

(l ) "Actionoble cloim"sholl hove the some meoning os ossigned to it in section 3 of the Tronsfer of Prope0 Act, 1882;

Short title,

extent

ond com-

mencement.

4 of 1882.

Definitions

t4

(2) "Address of delivery" meons the oddress of the recipient of goods or services or both indicoted on the tox invoice issued by o registered person for delivery of such goods or services or both;

(3) iAddress on record" meons the oddress of the recipient os ovoiloble in the records of the supplier;

(4) ?diudicoting outhority" meons ony outhority, oppointed or outhorised to poss ony order or decision under this Act, but does not include the Commissioner, Revisionol Authority, theAuthority forAdvonce Ruling, the Appellote Authority forAdvonce Ruling, lhe Appellote Authority ond the Appellote Tribunol;

(5) ',Agent" meons o person, including o foctor, broker, commission ogent, orhotio, del credere ogenl, on ouctioneer or ony other mercontile ogent, by whotever nome colled, who conies on the business o{ supply^or receipt of goods or services or both on beholf of onother;

(6) ?ggregote turnover"meons the oggregote volue of oll toxoble supplies (excluding the volue of inword supplies on which tox^is poyoble by o person on reverse chorge bosis), exempt supplies, exports of goods or services or both ond inter-Stote supplies^of persons hoving the some Permonent Account Number, to be computed on oll lndio bosis but excludes centrol tox, Stote tox, Union territory tox, integroted tox ond cess;

2

43 of 1961^.

75

(7) iAgriculturisf'meonsonindividuol or o Hindu Undivided Fomily who undertokes cultivotion of lon4-

(o) by own lobour, or

(b) by the lobour of fomily, or

(c) by servonts on woges poy- oble in cosh or kind or by hired lobour under personol supervision or the personol supervision of ony member of the lomily;

(8) ?ppellote Authority" meons on quthority oppointed or oulhorised to heor oppeols os referred to in sedion 107;

(9) 'Appellote Tribunol' meons the Goods ond SeMces To;( Appellote Tribunol refened to in sedion I09;

(10) ?ppointed doy 'lneons the dote on which the provisions of this Aa sholl come into force;

(1 I ) "Assessment"meons determino- tion of tox liobility under this Act ond includes selfossessment, re- ossessment, provisionol ossess- ment, summory ossessment ond best judgement ossessment; (12)'Associoted enterprises' sholl hove the some meoning os os- signed to it in section 92A of the lncome-tox Ad, 1961;

(l 3) ?udit"meons the exominotion of records, returns ond other documents mointoined or

fumished by the registered person under this Act or the rules mode frereunderor under ony other low for the time being in force to verify the correctness of turnover- declored, toxes poid, refund

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cloimed ond input tox credit ovoiled, ond to ossess his complionce with the provisions ol this Act or the rules^mode trereunder;

(14) 'Authorised bonk"sholl meon o bonk or o bronch of o bonk outhorised by the Centrol Government to collect the tox or ony other omount poyoble under this Act

( I 5) 'Authorised representotive"

meons the representotive^os referred to under section I l6;

(16) tsoord"meons $e CenrolBoord of Excise ond Customs

constituted under the Centrol Boords of Revenue Act, 1963; (l 7) tsusiness"includes--

(o) ony trode, commerce, monufocture,profession, vocotion, odventure, woger or ony other similor octivity, whether or not it is for o pecuniory benefi[

(b) ony octivity or tronsoction in connection with or incidentol or oncillory to sub-clouse (o);

(c) ony octivity or tronsoction in the noture oI sub-clouse (o), whether or not there is volume, frequency, conti- nuity or regulority of such tronsodion;

(d) supply or ocquisition of goods including copitol goods ond services in connection with commence- mentor closure of business; 54 of 1963.

n

(e) provision by o club, ossociotion, society, or ony such body (for o subscription or ony other considerotion) of the focilities or benefits to its members;

(0 odmission, for o considero- tion, of persons to ony premises;

(g) services supplied by o person os the holder of on office which hos been occepted by him in the course or furtheronce of his trode, profession or vocotion;

(h) services provided by o roce club by woy of totolisotor or o licence to book moker in such club; ond

(i) ony odivity or tronsoction undertoken by the Centrol Gorernmeflt o 9sE GovenF ment or ony locol outhority in which they ore engoged os public outhorities; ( I 8) 'tsusiness verticol" meons o distinguishoble component of on enterprise thol is engoged in the supply of individuol goods or services or o group oI reloted goods or serviceswhich is subiect to risks ond returns thot ore different lrom those of the other business verticols.

Explonalion.-For Ihe purposes^of this clouse, foctors hot should be considered in determining whelher goods or services ore

reloted include--

(o) the noture of the goods or services;

5

7t

(b) the noture of the produaion processes;

(c) the type or closs of customers for the goods or seMces;

(d) the methods used to distribute the goods or suppty ol services; ond

(e) lhe noture of regulotory environment (wteraner opdi- coble), including bonking, insuronce or public utilities; ( I9) fophol goods" meons goods, lhe volue of which is copitolisedⁱⁿ the books of occount ol the person cloiming the input tox credit ond which ore used or intended to be used in the course or furtheronce of business;

(20) tosuol toxoble person"meons o person who occosionolly

undertokes tronsoaions involving supply of goods or services or both in the course or furtheronce of business, whether os principol, ogent or in ony other copocity, in the toxoble territory where he hos no fixed ploce of business;

(21) tentrol tox" meons the Centrol qoods ond Services tox levied under section 9 of the Centrol Goods ond Services Tox Act;

(22) "Cess" sholl hove the some meoning os ossigned to it in the Goods ond Services Tox

(Compensotion to Stotes) Act;

(23) ,Chortered occountont" meons o chortered occountont os defined in clouse (b) of sub-section (l ) of section 2 of the Chortered Accountonts Act, 1949;

38 of 1949

(24)

(2s)

(26)

(27)

(28)

(2e)

(30)

79

"Commissioner" meons the Commissioner of Stote tox oppointed under section 3 ond includes the ftincipol Commissio- ner or Chief Commissioner; tommissioner in the Boord"

meons the Commissioner refened to in section 158 of the Centrol Goods ond Services Tox Ad;

"Common portol' meons the common goods ond services tox electronic portol referred to in section 146;

tommon working doys" sholl meon such doys in succession which ore not declored os Gozetted holidoys by the Centrol Govemment or fie Govemment of Arunochol Prodesh;

'Compony secretory' meons o compony secretory os defined in clouse (c) of sub-section (l) of section 2 of the Compony Secretories Ad, I 980;

tompetent outhority" meons such outhority os moy be notified by the Governmeng

tomposite supply" meons o supply mode by o toxoble person to o recipient consisting of two or more toxoble supplies ofgoods or services or both, or ony combino- tion thereof, which ore noturolly bundled ond supplied in

coniundion witfr eoch other in the ordinory course of business, one of which is o principol supply; 56 of 1980.

EO

lllustrotion: Where goods ore pocked ond tronsported with insuronce, the supply of goods, pocking moteriols, tronsport ond insuronce is o composite supply ond supply of goods is o principol supply.

(31) tonsiderotion" in relotion to the supply of goods or services or both includer-

(o) ony poyment mode or to be mode, whether in money or othenaise, in resped of,ⁱⁿ response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by ony other person but sholl not irrclude orry subsirJy given by the CentdGwemment or o Sffie Govemment

(b) he monehry volue of ony oct or forbeoronce, in respect of, in response to, or for the inducement ol tre supply of goods or services or both, whether by the recipient or by ony other person but sholl rrct include orry subsidy given by the Cenrol Goremment or o Sffie Govemment:

Provided hat o deposit given in respect of the supply of goods or services or botr sholl not be consirJered os poyment mode for such supply unless the supplier opplies such deposit os considerotion for the soid supply;

8

23 ol 1959. 8l

(32) tontinuous supply of goods"

meons o supply of goodswhich is provided, or ogreed to be provided, continuously or on recunent bosis, under o controd, whether or not by meons of o wire, coble, pipeline or other conduit, ond for which ttre supplier invoices the recipient on o regulor or periodic bosis ond includes supply of such qoods os the Government moy, subjea to such conditions, os it moy, by notificotion, specify;

(33) tontinuous supply of services"

meons o supply of services which is provided, or ogreed to be provided, continuously or on recurrent bosis, under o controct, for o period exceeding three months with periodic poyment obligotions ond includes supply of such services os the Government moy, subied to such conditions, os it moy, by notificotion, specify;

(34) tonveyonce"includes o vessel, on oircrqft ond o vehicle;

(35) tost occountont" meons o cost occountont os defined in clouse

(c) oI sub-section (l ) of sedion 2 of the Cost ond Works

Accountonts Ad, 1959;

(36) touncil" meons the Goods ond Services Tox Council estoblished under orticle 279A of the Constitution;

(37) tredit note" meons o document issued by o registered person under sub.section (l ) of section 34;

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2l of 2000 t2

(38) Debit note" meons o document issued by o registered person under sub.section (3) of section 34;

(39) Deemed exports" meons such supplies of goods os moy be notified under section 147; (rl0) Designoted outrority" meons such ouhority os moy be notified by the Commissioner;

(41) Document" includes written or printed record of ony sort ond electronic record os definedⁱⁿ clouse (t) of section 2 of the lnlormstion Technology Act, 2000;

(42) Drqwbock"in relotion to ony goods monufoctured in lndio ond

exported, meons the rebote of duty, tox or cess chorgeoble on ony imported inputs or on ony domestic inputs or input services used in the monufocture of such goods;

(43) "electronic cosh ledger"meons the electronic cosh ledger relerred to in sub-sedion (1) of sedion 49; (zl4) "electronic commerce"meons the supply of goods or services or boh, including digitol products over digitol or electronic network;

(45) "electronic commerce operotor"

meons ony person who owns, operotes or monoges digitol or electronic focility or plotform for eledronic commerce;

(46) "eleckonic credit ledger" meons the electonic credit ledger refuned to in subsection (2) of section 49;

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83

(47) 'exempt supply"meons supply of ony goods or services or both which ottrocts nil rote of tox or which moy be wholly exempt from tox under section ll, or under section 6 ofthe lntegroted Goods ond S€rvices Tox Actr ond includes non-toxoble supply;

(48) 'existing low" meons ony low nolificotion, order, rule or regukrtion reloting to levy ond colledion oI duty or tox on goods or services or bottr possed or mode before he commencement of this Act by the Legisloture or ony Authority or person hoving the power to moke such low notificotion, order, rule or regulotion;

(49) 'Iomily"meons,-

(i) the spouse ond children of the person, ond

(ii) the porents, grond-porents, brothers ond sisters ol the person if they ore wholly or moinly dependent on the soid person;

(50) Tixed estoblishment" meons o ploce (other thon the registered ploce of business) which is chorocterised by o suff icient degree of permonence ond suitoble structure in terms of humon ond technicol resources to supply services, or to receive ond use services for its own needs;

(51) Tund" meons the Consumer Welfore Fund estoblished under section^57;

80 of I 976 (s2)

(s 3)

(il)

(ss)

(s6)

(s7)

(s8)

81

"goods" meons every kind of movoble property other^thon money ond securities but includes octionoble cloim, growing crops, gross ond things ottoched to or forming port of the lond which ore ogreed to be -vered before supply or under o controd of supply;

"Government" meons the &vemmenl ol Aru m dnl h&sh; 'Goods ond Services Tox (Compen sotion to Stotes) Ad" meons the Goods ond Services Tox (Compensotion to Stotes) Act, 2017;

"goods ond services tox proctitioner' meons ony person who hos been opproved under section 48 to oct os such proctitioner;

'lndio' meons the tenitory of lndio os referred to in orticle I o{ the Constitution, its territoriol woters, seobed ond sub-soil underlying such woters, continentol shelf, exclusive economic zone or ony other moritime zone os referrd to in the Terriloriol Woters, Continentol Shelf , Exclusive Economic Zone ond otrer lv,loritime ZonesAc! 1976, ond fre oir spoce obove its territory ond territoriol woters;

'lntegroted Goods ond Services Tox Act" meons the lntegroted Goods ond Services Tox Act, 2017;

"integroted tox" meons the integroted goods ond services tox levied under the lntegroted Goods ond Services Tox AcU

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(59) lnput"n€ons ony goods other thon copitol goods used or intendd to be used by o supplier in the course or furtreronce^of business;

(60) lnput service"meons ony service used or intended to be used by o supplier in the course or furtheronce^of business;

(61 ) lnput Service Distributor"meons on office of the supplier ol goods or services or bott which receives tox invoices issued under section 3l towords the receipt of input services ond issues o prescribed document for the purposes of distributing the credit of centrol tox, Stote tox, integroted tox or Union tenitory tox poid onthe soid services to o supplier of toxoble goods or services or both hoving the some Permonent Account Number os thot ofthe soid office;

(62) lnput bx"in relotjon to o registered person, meons the centrol tox, Stote tox, inlegroted tox or Union tenitory tox chorged on ony supply of goods or services or both mode to him ond includes-

(o) the integroted goods ond services tox chorged on import of goods;

(b) the tox poyoble under the provisions of sub-sections

(3) ond (4) oI section 9;

(c) the tox poyoble under the provisions of sub-sections

(3) ond (4) of section 5 of the lntegroted Goods ond Services Tox AcL or

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(d) the tox poyoble under the provisions of sub-sedions

(3) ond (4) of section 9 of he CentalGds and Servkes Tox Act,

but does not include the tox poid under the composition le!ry;

(53) lnput tox credit"meons the credit of input tox;

(64) '1ntro-Stote supply of goods" sholl hove the some meoning os

ossigned to it in section 8 of the lnEgmEd Goods ond Services Tox Acu

(65) 'lntro-Stote supply of services"

sholl hove the some meoning os ossigned to it in section 8 of the lntegroEd Goods ond Services Tq Act;

(66) 'lnvoice"or tox invoice"meons tre tox invoice referred to in section

31

(67) "inword supply" in relotion to o person, sholl meon receipt of goods or services or boh whether by purchose, ocquisition or ony other meons, with or without considerotion;

(68) lob work"meons ony treotment or process undertoken by o person on goods belonging to onother registered person ond the expression 'lob worker" sholl be construed occordingly;

(69) locol outhority"meons-

(o) o ?onchoyot"os defined in douse (d) of ortide 243 of fie Constitution;

41 o12006. t7

(b) o Trrlunicipolity'os defined in clouse^(e) ol orticle 243P o( the Constitution;

(c) o Municipol Committee, o Zillo Porishod, o District Boord, ond ony other outhority legolly entided to, or entrusted by the Centrol Government or ony Stote Govemment with the control or mcnogement of o

municipol or locolfund;

(d) o Contonment Boord os defined in section 3 of the Contonments Act, 2006;

(e) o Regionol Council or o District Council constituted under the Sixth Schedule to the Constitution;

(f) o Development Boord constituted under orticle 371 of the Constitution; or

(g) o Regionol Council consti tuted under orticle 37lA of the Constitution;

(70) locotion of the recipient of services"

meons,-

(o) where o supply is received ot o ploce of business forwhich the registrotion hos been obloined, he locotion of such ploce of business;

(b) where o supply is received ot o ploce other thon the ploce of business for which

registrotion hos been

obtoaned (o fixed estoblish- , ment elsewhere), the

!ocotion of such f ixed estcblishment;

15

8E

(c) where o supply is received ot more thon one estoblish- ment, whether the ploce of business^or fixed estoblish- ment, the locotion of the estoblishment most directly concerned with tre receipt of the supply; ond

(d) in obsence of such ploces, the locotion of the usuol ploce of residence of the recipient;

(7I) 'locotion of the supplier of services"

meons,-

(o) where o supply is mode from o ploce ol business forwhich the registrotion hos been obtoined, the locotion of such ploce of business;

(b) where o supply is mode from o ploce other thon the ploce of business for which

registrotion hos^been

obtoined^(o fixed estoblish- ment elsewhere),^the locotion of such f ixed estoblishmenL

(c) where o supply is mode from more thon one estoblish- ment, whether the ploce of business or fixed estoblish- ment, the locotion ol the estqblishment most directly concerned with the

provisions of the supply; ond

(d) in obsence of such ploces, the locotion oi the usuol ploce oI residence of the supplier;

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89

(72)'?nonufocture"meons processing of row moteriol or inputs in ony monner drot results in emergence ofo new produd hoving o distinct nome, chorocter ond use ond the term "monufocturer" sholl be construed occordingly;

(73) '?norket volue" sholl meon the full omountwhich o recipient ofo suP ply is required to poy in order to obtoin the goods or services or both of like kind ond quolity ot or obout the some time ond ot the some commerciol level where the recipient ond the supplier ore not reloted;

(74) 'tnixed supply"meons two or more individuol supplies of goods or services, or ony combinotion thereof, modeⁱⁿ conjunction with eoch other by o toxoble person for o single price where such supply does not constitute o composite supply.

lllustrotion: A supply of o pockoge consisting of conned foods, sweets, chocolotes, cokes, dry fruits, oeroted drinks ond fruit juices when supplied for o single price is o mixed supply. Eoch oI these items con be supplied seporolely ond is not dependent on ony other. lt sholl not be o mixed supply if these items ore supplied seporotely;

(75) "money" meons the lndion legol tender or ony foreign currency, cheque, promissory note, bill of exchonge, letter of credit, droft, poy ordet toveller cheque, money order, postol or electronic

59 of 1988

90

remittonce or ony olher instrument recognized by the Reserve Bonk of lndio when used os o

considerotion to setlle^on obl(lotion or exchonge wih lndion legol tender of onother denominotion^but sholl not include ony currenry thot is held for its numismotic volue;

(76) 'tnotor vehicle"sholl hove the some meoning os ossigned to it in clouse (28) of seclion 2 of^the Motor Vehicles Act, 1988;

(77) "non-resident toxoble person"

meons ony person who

occosionolly undertokes

tronsodions involving supply of goods or services or botr, whefier os principol or ogent or in^ony other copocity, but who hos no fixed ploce of business^or residence in lndio;

(78) 'hon-toxoble supply" meons o supply of goods or seMces or botr which is not levioble to tox under this Ad or under the lntegroted Goods ond Services Tox Ad;

(79) hon{oxoble territory" meons the territory which is outside the toxoble territory;

(80) "notificotion" meons o notificotion published in the Officiol Gozette ond the expressions 'notify' ond ' notif ied' sholl be construed occordingly;

(81) bther territory" includes territories other thon those comprising in o Stote ond those referred to in sub-clouses^(o) to (e) of clouse (1r4);

l8 of 201 3. 9r

(82) "output tox"in relotion to o toxoble person, meons the tox chorgeoble under this Act on toxoble supply of goods or services or bob mode by him or by his ogent but ex- cludes tox poyoble by him on re verse chorge bosis;

(83) "outword supply" in relotion to o toxoble person, meons supply of goods or services or botr, whether by sole, ronsler, borter, exchonge, licence, rentol, leose or disposol or ony other mode, mode or

ogreed to be mode by such per- son in the course or furtheronce of business;

(84) ?erson"includes-

(o) on individuol;

(b) o Hindu Undivided Fomily;

(c) o compony;

(d) o firm;

(e) o Limited Li:bility Porhership; (0 on ossociotion of persons or o body of ind ivid uo ls, whether incorporoted or not, in lndio or outside lndio;

(g) ony corporotion estoblished by or under ony CentrolAct, Stote Ad or ProvinciolAct or o Government compony os defined in clouse (45) of section 2 of the Componies Act, 2013;

(h) ony body corporote incor- poroted by or under the lows of o country outside lndio;

19

2'l of^I 860.

92

(i) o co-operotive society registered under ony^low reloting to co-operotive societies;

0 o locolouthority;

(k) Cenkol Government or o Shte Government;

(l) society os defined underthe SocietiesRegistrotion Act, 1860;

(m) trust; ond

(n) every ortif iciol juridicol person, notfolling within ony of the obove;

(85) 'Floce of business" includes-

(o) o ploce from where the business is ordinorily corried on, ond includes^o

worehouse, o godown or ony other ploce where o toxoble person stores his goods, supplies or receives goods or services or bolh; or

(b) o ploce where o toxoble person mointoins his books of occount or

(c) o ploce where o toxoble person is engoged in business through on ogent, by whotever nome colled;

(86) 'Floce of supply" meons the ploce of supply os refened to in Chopter V of the lntegroted Goods^ond Services Tox Act;

(87) hrescribed" meons prescribed by rules mode under this Act on the recommendotions oI the Council;

20

(88) lrincipol" meons o person on whose beholf on ogent corries on the business of supply or receipt of goods or services or both;

(89) "principol ploce of business"

meons the ploce oI business specified os the principol ploce of business in the certificote of regisfoton;

(90)'principol supply"meons the supply of goods or services which

constitutes the predominont element of o composite supply ond to which ony other supply forming port of thot composite supply is oncillory;

(91) 'Froper officer" in relotion to ony function b be performed under fris Act, meons the Commissioner or the officer of the Stote tox who is ossigned thot Iunction by the Commissioner;

(92) tuorter" sholl meon o period comprising three consecutive colendor months, ending on the lost doy of Morch, June, September ond December ol o colendoryeor;

(93) 'iecipient" o, supply of goods or services or both, meons-

(o) where o considerotion is poyoble for the supply of goods or seMces or botr, he person who is lioble to poy thol considerotion;

(b) where no considerotion is poyoble for the supply of goods, the person to whom the goods ore delivered or mode ovoiloble, or to whom possession or use of the goods is given or mode ovoiloble; ond

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(c) where no considerotion is poyoble for the supply of o service, tte person to whom the servke is rendered, ond ony rebrerre to o person to whom o supply is mode sholl be construed os^o relerence to fre recipient of the supply ond sholl include on ogent oding os such on beholf oI the recipienlⁱⁿ relotion to the goods or seMces or bofr supplied;

(94) "registered person" meons o person who is registered under seaion 25 but does not include o person hoving o Unique ldentity Number.

(95) tegukrtions"meons the regukrtions mode by the Government undet thisAct on the recommendotions of the Council;

(96) "removol" in relotion to goods, meons-

(o) despotch of the goods lor delivery by the supplier thereof or by ony other person octing on beholf of such supplier; or

(b) collection of the goods by $e recipient thereof or by ony olher person octing on beholf of such recipient;

(97) "return" meons ony return prescribed or otherurise required to be furnished by or under this Act or the rules mode thereunder;

22

(98) twerse chorge" nreons tre liobility to^poy tox by the recipient of suppt of gpods or seMces or botr insteod oI the supplier of such goods or services or both under subsection⁽³⁾ or sub-seaion⁽⁴⁾ ol section 9,or under sub-section

(3) or sub-section (4) of seaion 5 of the lntegroted Goods ond Services Tox Ad;

(99) Revisionol Authority" meons on outhority oppointed or outhorised for revision of decision or orders os referred to in sedion 108;

(100) lSchedule' meons o Schedule oppended to this Ad

(l0l) "securities" sholl hove the some meoning os ossigned to it in clouse (h) of section 2 of the Securities Controcts (Regulotion) Act, 1955;

( I 02) "services" meons onything other thon goods, money ond securities but includes odivities reloting to he use of money or its conversion by cosh or by ony other mode, from one form, currency or

denominotion, to onother form, cunency or denominolion for uhkh o seporote considerotion is chorged;

(I03) "Stote" meons the Stote oI Arunochol Prodesh ;

( 104) 'Stote tox" meons the tox levied under this Act

(105) "supplier"in relotion to ony goods or services or botr, sholl meon dre person supplying the soid goods or services or both ond sholl include on ogent octing os such on beholf of such supplierⁱⁿ relotion to the goods or services or both supplied;

42 of 1956.

23

96

( 106) tox period" meons the period for which the return is required to be furnished;

(107) toxoble person"meons o person who is registered or lioble to be registered under section 22 or section^24;

(108) loxoble supply'' meons o supply of goods or services or both which is levioble to tox under this Ad;

(109) loxoble territory" meons the tenitory to which the provisions of this Act opply;

( I I 0) lelecommunicotion seMce"meons service of ony description

(including electronic moil, voice moil, doto services, oudio text seMces, video text services, rodio poging ond cellulor mobile

telephone services) which is mode ovoiloble to users by meons of ony tronsmission or reception of signs, signols, writing, imoges ond sounds or intelligence of ony noture, by wire, rodio, visuol or other electromognetic meons; (l I I ) the Centrol Goods ond Services Tox Act" meons he CentolGoods ond Services Tox Act, 201 7;

(112) 'turnover in Stote"or lurnover in Union territory" meons the

oggregote volue of oll toxoble supplies (excluding the volue of inword supplies on which tox is poyoble by o person on reverse chorge bosis) ond exempt

supplies mode within o Stote or Union territory by o toxoble

t25

(d) goods or services or both received by o toxoble person for construction of on immovoble property (other thon plont or mochinery) on his own occount including when such goods or services or both ore used in the course or furtheronce of business.

Explonotion.-F or the purposes of clouses (c) ond (d), the expression

"con struction "includes recon- struction, renovotion, odditions or olterotions or repoirs, to the extent of copitolisotion, to the soid immovoble property;

(e) goods or services or both on which tox hos been^poid

under sedion l0;

(f) goods or services or both received by o non-resident toxoble person except on goods imported by him;

(g) goods or services or both used for personol

consumption;

(h) goods lost, stolen, destroyed, written off or disposed ol by woy ol gift or free somples; ond

(i) ony tox poid in occordonce with the provisions of sections 74, 129 ond I 3l (5r fhe Government mqy prescril:c the monner in which the credit 'eferred^{to in} sub-sections^{(1) ond}

(2) moy be nttribr rted.

25

126

Explonation.- For tre purposes of this Chopter ond Chopter Vl, the expression ?lonl ond mochinery"

meons opporotus, equipment, ond mochinery fixed to eorth by foundotion or structurol support *rot ore used for moking outword supply of goods or services or both ond includes such foundotion ond stucturol supports but excludes-

(i) lond, building or onyother civil structures;

(ii) telecommunicotion towers; ond

(iii) pipelines loid outside the loclory premises.

18. (l) Subject to such conditions ond restrictions os moy be

prescribed-

(o) o person who hos opplied for registrotion under this Act within thirty doys from the dote on which he becomes lioble to registrotion ond hos been gronted such regis- trotion sholl be entitled to toke credit of input tox in respect of inputs held in stock ond inputs contoined in semifinished or finished goods held in stock on the doy immediotely preceding the dote from which he

becomes lioble to poy tox under the provisions of this Act;

(b) o person who tokes registrotion under sub- section (3) ol section 25 sholl be entitled to toke credit of input tox in respect Avoilobility

of credit in

speciol

circum-

slonces.

127

ol inputs held in stock ond inputs contoined in semi- linished or linished goods held in stock on the doy immediotely preceding the dote of gront of registrotion;

(c) where ony registered person ceoses to poy tox under section 10, he sholl be entided to toke credit of input tox in respect of inputs held in stock, inputs contoined in semi-finished or Iinished goods held in stock ond on copitol goods on the doy immediotely preceding the dote lrom which he becomes lioble to^poy tox under section^9:

Provided thot the credit on copitol goods sholl be reduced^by such percentoge points os moy be prescribed;

(d) where on exempt supply of goods or services or both by o registered person be- comes o toxoble supply, such person sholl be entitled to toke credit of input tox in respect of inputs heldⁱⁿ stock ond inputs contoined in semi-finished or finished goods held in stock relotoble to such exempt supply ond on copitol goods exclusively used {or such exempt supply on the doy immediotelY preceding the dote from which such supply becomes toxoble:

t28 Provided thot the credit on copitol goods sholl be reduced by such percentoge points os moy be prescribed.

(2) A registered person sholl not be entitled to toke input tox credit under sub-section (l) in respect of ony supply of goods or services or both to him olter the expiry of one yeor from the dote of issue oI hx invoice relsting to such supply.

(3) Where there is o chonge in the constitution of o registered person on occount of sole, merger, demerger, omolgomqtion, leose or tronsfer of the business with the specific provisions of tronsfer of liobilities, the soid registered person sholl be ollowed to ronsfer the inputtox credit which remoins unutilised in his electronic credit ledger to such sold, merged, demerged, omolgomoted, leosed or tronsferred business in such monner os moy be prescribed.

(4) Where ony registered person who hos ovoiled ofinputtox creditopts to poy tox under sedion 10 or, where the goods or services or both supplied by him become wholly exempt, he sholl poy on omount, by woy of debit in the electronic credit ledger or electronic cosh ledger, equivolent to the credit of inputtox in respect of inputs held in stock ond inputs contoined in semi-finished or finished goods held in stock ond on copitolgoods, reduced by such

28

t29 percentoge points os moy be prescribed, on the doy imme- diotely preceding the dote of exercising ol such option or, os the cose moy be, the dote of such exemption:

Provided thot ofter poyment of such omount, the bolonce of input tox credit, if ony, lying in his electronic credit ledger sholl lopse.

(5) The omount of credit under sub- section^('l ) ond the omount poyoble under sub-section⁽⁴⁾ sholl be colculoted in such monner os moy be prescribed.

(5) ln cose of supply of copitol goods or plont ond mochinery. on which input tox credit hos been token, the registered person sholl^poy on omount equol to the input tox credit token on the soid copitol goods or plont ond mochinery reduced by such percentoge points os moy be prescribed or the lox on the tronsoction volue of such copitol goods or plont ond mochinery determined under section 15, whichever is higher:

Provided thot where refroctory bricks, moulds ond dies, jigs ond fixtures ore supplied os scrop, the toxoble person moy poy tox on the tronsoction volue of such goods determined under section 15.

19. (l) The principolsholl, subject to such conditions ond restridions os moy be prescribed, be ollowed input tox credit on inputs sent to o job worker {or job work.

Toking input

tox credit in

respect ot

inputs ond

copitol

goods sent

for job work.

29

130

(2) Notwithstonding onything contoi- ned in clouse (b) of sub-section

(2) of seaion 16, the principolsholl be entitled to toke credit of ;nput tox on inputs even if the inputs ore directly sent to o lob worker for job work wifrout being first brought to his ploce of business.

(3) Where fre inputs sent for job work ore not received bock by the principol ofter completion of job work or otherwise or ore not supplied from the ploce o{

business of the job worker in occordonce with clouse (o) or clouse (b) o{ sub-section (l) of section 143 within one yeor of being sentout, it sholl be deemed thot such inputs hod been

supplied by the principolto the job worker on the doy when the soid inputs were sent out:

Provided thot where the inputs ore sent directly to o job worker, the period of one yeor sholl be counted from the dote of receipt of inputs by the iob worker.

(4) The principol sholl, subject to such conditions ond restrlctions os moy be prescribed, be ollowed input tox credit on copitol goods sent to o iob worker for job work.

(5) Notwithstonding onything con- toined in clouse^(b) ofsub-sedion (2)of section 15, the principolsholl be entitled to toke credit ol input tox on copitol goods even if the copitol goods ore directly sent to o job worker for job worker without being first brought to his ploce of business.

l3l

(6) Where the copitol goods sent for job work ore not received bock by he pdncipol wihin o period oI firee yeors of being sent out, it sholl be deemed thot such copitol goods hod been supplied by the principol to the job worker on the doy when the soid copitol goods were sent out:

Provided thot where the copitol goods ore sent directly to o^job- worker, fie period of three yeors sholl be counted from the dote of receipt of copitol goods by the job worker.

(7) Nothing contoined in sub.section

(3) or sub-section (6) sholl opply to moulds ond dies, iigs ond fixtures, or tools sent out to o job worker forjob work.

Explonotion^- Fot lhe purpose ofthis seaion,'principol"meons the person relerred to in section '143.

20. (l ) The lnput Service Distribulor sholl distribute the credit of Stote tox os Stote toxor integroted tox ond integroted tox os integroted tox or Stote tox, by woy of issue of

document contoining the omount

of input tox credit being distributed in such monner os moy be

prescribed.

(2) The lnput Service Distributor moy distribute the credit subied to the Iollowing conditions, nomely:--

(o) the credit con be distributed to the recipients of credit ogoinst o document con- toining such detoils os moy be prescribed;

Monner of

distribution

of credit

by lnput

Service

Distributor.

31

t32

(b) the omount oI the credit distributed sholl not exceed tre omount of credit ovoiloble for distribution;

(c) the credit of tox poid on input services ottributoble to o recipient of credit sholl^be distributed only to thot recipient;

(d) the credit of tox poid on input services ottributoble to more thon one recipient of credit sholl^be distributed omongst such recipients to whom the input service is ottributoble ond such disribution sholl be prc roto on the bosis of the furnover in o Stote or tumover in o Union territory of such recipient, during the relevont period, to the oggregote of the turnover of oll such recipients to whom such input service is ottributoble ond which ore operotionol in the current yeor, durinq the soid relevont period;

(e) the credit of tox poid on input services ottributoble to oll recipients of credit sholl be distributed omongst such

recipients ond s uch

distribution sholl be pro rato on the bosis of the turnover in o Stote or turnover in o Union territory of such

recipienl during the relevont period, to the oggregote ol the turnover of oll recipients ond which ore operotionol in the current yeor, during the soid relevont period.

32

r33 Explonotion.-For the purposes ol this sedion,--

(o) tre 'televont period"sholl be--

(i) i{ the recipients of credit hove turnover in their Stotes or Union territories in the

finonciol yeor preceding the yeor during which credit is to be dislributed, the soid

finonciol yeor; or

(ii) if some or oll recipients o{the credit do not hove ony

turnover in their Stotes or Union territories in the

finonciol yeor preceding the yeor during which the credit is to be distributed, the lost quorter for which detoils of such turnover of oll the

recipients ore ovoiloble, previous to he monfr during which credit is to be

distributed;

(b) the expression tecipient of credit"

meons the supplier oI goods or services or both hoving the some Permonenl Account Number os thot o, the lnput Service

Distributor;

(c) the term turnover", in relotion to ony registered person engoged in the supply of toxoble goods os well os goods not toxoble under this Act, meons the volue of turnover, reduced by the omount of ony duty or tox levied under entry 84 of List I of the Seventh Schedule to the Constitution ond entry 5l ond 54 of List ll o{ the soid Schedule.

33

t31

21. Where the lnput Service Distributor distributes the credit in controvention of the provisions contoined in section 20 resulting in excess distribution o{ credit to one or more recipients o{ credit, the excess credit so distributed sholl be recovered from such recipients olong with interest, ond the provisions of sedion 73 or section 74, os tre cose moy be, sholl, mutotis mutandis, ap- ply for determinotion of omount to be recovered.

CHAPTER^{- VI}

REGISTRATION

Every supplier moking o toxoble supply of goods or seMces or both in the Stote sholl be lioble to be registered under this Act i, his oggregote turnover in o {inonciol yeor exceeds ten lokh rupees. Every person who, on the doy immediotely preceding the oppointed doy, is registered or holds o license under on existing low shollbe liobleto be registered under thisAct with effea from the oppointed^doy.

Where o business corried on by o toxoble person registered under thisAct is tronsferred, whether on occount of succession or other- wise, to onother person os o going concern, the tronsferee or the successot os the cose moy be, sholl be lioble to be registered with effect from the dote of such tronsrer or succession.

Notwithstonding onything conto- ined in sub-sections (l ) ond^(3), in o cose of tronsfer pursuont to sonction of o scheme or on Monner of

recovery of

credit

dislributed

in excess.

Persons

Iiable for

registrotion

22.⁽¹⁾

(2)

(3)

(4)

t3, orongemer{ for omolgomolion or, os the cose moy be, de.merger of two or more componies pursuont to on order of o High Court, Tribunol or otherwise, the fonsferee sholl be lioble to be registered, with effect lrom the dote on which the Registror of Componies issues o certificote of incorporotion gMng eflect to such order of he High Colrt or Tribunol. Explanation.--For the purposes oI this section,-

0 the expression "oggregote turn- over" sholl include oll supplies mode by the toxoble person, whether on his own occount or mode on beholf of oll his princi- pols;

(ii) $e supply of goods, ofter comple. tion of iob-work,^by o registered job worker sholl be treoted os the supply of goods by the principol referred toⁱⁿ sedion 143, ond the volue of such goods sholl not be included in te oggregote tumover of the registered job worker;

(iii) theexpressiontpeciolcotegory Stotes"sholl meon the Stotes os specified in sub-clouse (9) of clouse⁽⁴⁾ of orticle 279A of the Constitution.

23. (l ) Thefollowing persons shollnotbe Iioble to registrotion, nomely:--

(o) ony person engoged exclusively in the business of supplying goods or services or both thot ore not lioble to tox or wholly exempt from tox under this Act or under the lntegroted Goods ond Services Tox Act; Persons nol

lioble for

registrotion.

35

t36

(b) on ogriculturist, to the extent ol supply ol produce out of cultivotion o{ lond.

(2) The Government moy, on the recommendotions o{ the Council, by notificotion, specify the cotegory of persons who moy be exempted from obtoining registrotion under this Act.

24. Notwithstonding onything contoined in sub-section (l) of section 22, the following cotegories of persons sholl be required to be registered under this Act,-

(i) persons moking ony inter^Stote toxoble supply;

(ii) cosuol toxoble persons moking toxoble supply;

(iii) persons who ore required to poy tox under reverse chorge;

(iv) person who ore required to poy tox under sub-section (5) ol section^9;

(v) non-resident toxoble persons moking toxoble supply;

(vi) persons who ore required to deduct tox under section 5'1, whether or not seporotely registered under this Act;

(vii) persons who moke toxoble supply of goods or services or both on beholf of other toxoble persons whether os on ogent or otherwise;

(viii) lnput Service Distributot whether or not seporotely registered under this AcU

(ix) persons who supply goods or services or both, other thon supplies specified under sub- Compulsory

registrotion

in certoin

coses.

36

t37 section (5) of section 9, through such electronic commerce operotor who is required to collect tox ot source under section 52;

(x) every electronic commerce operotor;

(xi) every person supplying online informotion ond doto bose occess or retrievol services lrom o ploce outside lndio to o person in lndio, other thon o registered person; ond

(xii) such other person or closs of ' persons os moy be notified by the Government on the recommen- dotions ofthe Council.

25. (l) Every person who is lioble to be registered under section 22 or section 24 sholl opply for

registrotion within thirty doys from the dote on which he becomes lioble to registrotion, in such monner ond subject to such

conditions as moy be prescribed:

Provided thot o cosuol toxoble person or o non-resident toxoble person sholl opply for registrotion ot leost five doys prior to the commenc+ ment of business.

Explonotion.- Every person who mokes o supply from the territoriol woters of lndio sholl obtoin registrotion in the Stote where the neorest point of the oppropriote boseline is locoted in the Stote.

(2) A person seeking registrotion un- der this Act sholl be gronted o single registrotion:

Procedure

for

registrotion.

37

43 ot 1961 t38

Proided thot o Person hoving multiple business verlicols in the Sffie nny be qonted o seryrote regi istrotion for eoch business verticol, subject to such conditions os moy be prescribed.

(3) A person, though not lioble to be registered under section 22or sec- tion 24 moy get himself registered voluntorily, ond oll provisions of this Ad, os ore opplicoble to o registered person, sholl opply to such person.

(4) A person who hos obtoined or is required to obtoin more thon one registrotion, whether in one Stote or Union territory or moretton one Stote or Union territory sholl, in respect of eoch such registrotion, be treoted os distinct persons for the purposes of this Act.

(5) Where o person who hos obtoined or is required to obtoin registro- tion in o Stote or Union territoryⁱⁿ respect of on estoblishment, hos on estoblishment in onother Stote or Union territory then such es- toblishments sholl be treoted os estoblishments of distinct per sons for the purposes of this Act.

(6) Every person sholl hove o Permo- nentAccount Number issued^un- der the lncome-tox Act, 1961 in order to be eligiblefor grontof reg- istrotion:

Provided thot o person required to deduct tox under section 51 moy hove, in lieu of o PermonentAccount Number, o Tox Deduction ond Col- lection Account Number issued un- der the soid Act in order to be eli- gible for gront of registrotion.

38

46 ol 1947 t39

(7) Notwithstonding onything con toined in sub-section (6), o non- resident toxoble person moy be gronted registrotion under sub- section (l) on the bosis of such other documents os moy be prescribed.

(8) Where o person who is lioble to be registered under this Act foils to obtoin registrotion, the proper officer moy, without prejudice to ony oction which moy be token under thisA,ct or under ony other low for the time being in force, proceed to register such person in such monner os moy be

prescribed.

(9) Notwithstonding onything contoined in suUsection (l ),-

(o) ony speciolised ogency of the United Notions Orgoni- sotion or ony Multiloterol Finonciol lnstitution ond Orgonisotion notified under tle United Notions (Privileges ond lmmunities) Act, 1947, Consulote or Embossy of foreign countries; ond

(b) ony other person or closs of persons, os moy be notified by the Commissionel

sholl be gronted o Unique ldentity Number in such monner ond for su ch

purposes, including refund of toxes on the notified supplies of goods or services or both received bythem, os moy be prescribed.

39

140

(10) The registrotion or the Unique ldentity Number sholl be gronted or reieaed ofter due verificotion in such monner ond within such period os moy be prescribed. (l I ) A certificote of registrotion sholl be issued in such form ond with effect from such dote os moy be prescribed.

(12) A registrotion or o Unique ldentity Number sholl be deemed to hove been gronted ofter lhe expiry of the period prescribed under sub- section (10), iI no deliciency hos been communicoted to the

opplicont within thot period.

26. (1) The gront of registrotion or the Unique ldentity Number under tre Centol Goods ond Services^Tox Act sholl be deemed to be o gront of registrotion or the Unique ldentity Number under this Act subied lo the condition thot the opplicotion for registrotion or the Unique ldentity Number hos not been rejeaed under this Act within the time specified in sub-section ( l0) of sedion 25.

(2) Notwithstonding onything contoined in sub-section (10) of section 25, ony reiection of opplicotion for registrotion or the Unique ldentity Number underthe Centrol Goods ond Services Tox Act sholl be deemed to be o reiection of opplicotion for registrotion under this AcL Deemed

registrotion

tll 27.⁽ l) The certificote of regisrqtion issued to o cosuol toxoble person or o

non-resident toxoble person sholl be volid for the period specified in the opplicotion for registrotion or ninety doys {rom the eflective dote of registrotion, whichever is eorlier ond such person sholl moke

toxoble supplies only ofter the

issuonce of the certificote of

registrotion:

Provided thot the proper oflicer moy, on sufficientcouse being shown by the soid toxoble person, extend the soid period of ninety doys by o further period not exceeding ninety doys.

(2) A cosuoltoxoble person or o non- resident toxoble person sholl, ot the time of submission of opplicotion for registrotion under sub-section (l) of section 25, moke on odvonce deposit of tox in on omount equivolent to the estimoted tox liobility o{ such person for the period forwhich the registrotion is sought:

Provided thot where ony extension of time is sought under sub-sedion (l ), such toxoble person sholldeposit on odditionol omount of tox equivolent to the estimoted tox liobility o{ such person for the period for which the extension is sought.

(3) The omountdeposited under sub- section (2) sholl be credited to the electronic cosh ledger of such person ond sholl be utilised in the monner provided under section 49. Speciol

provisions

reloting to

cosuol

toxoble

person ond

non-resident

toxoble

person.

41

t12

28. (l) Every registered person ond o person to wtrom o Unique ldentity Number hos been ossigned sholl inform the proper officer of ony chonges in the informotion furnished ot the time o{

registrotion or subsequent lhereto, in such form ond monner ond within such period os moy be prescribed.

(2) The proper officer moy, on the bosis of informotion furnished under sub-section (l) or os oscertoined by him, opprove or reiect omendments in the registrotion porticulors in such monner ond within such period os moy be prescribed:

Provided thot opprovol of the proper officer sholl not be requhed in respect of omendment of such porticulors os moy be prescribed:

Provided funher thot the proper officer sholl not rejed the opplicotion for omendment in the registrotion porticulors without giving the person on opportunity of being heord.

(3) Any rejection or opprovol of omendments under the Centrol Goods ond Services Tox Ad sholl be deemed to be o reiection or opprovol under thisAct.

29. (l ) The proper oflicer moy, either on his own motion or on on opplico- tion filed by the registered person or by his legol heirs, in cose of deoth of such person, concel the registrotion, in such monner ond within such period os moy be pre- scribed, hoving regord to the cir- cumstonces where,-

Amendment

d

registrotion.

Concellotion

d

registrotion.

42

t43

(o) the business hos been discontinued, tronslerred fully for ony reoson including deoth of the proprietor, omolgomoted with other legol entity, demerged or otherwise disposed of; or

(b) there is ony chonge in the constitution of the business; q

(c) the toxoble person, other thon the person registered under sub-section (3) of section 25, is no longer lioble to be registered under section 22 or section 24.

(2) The proper officer moy concelthe registrotion of o person from such dote, including ony retrospective dote, os he moy deem fit, where,-

(o) o registered person hos controvened such provisions of the Act or the rules mode thereunder os moy be prescribed; or

(b) o person poying tox under section 10 hos notfurnished returns for trree consecutive tox periods; or

(c) ony registered person, other thon o person specified in clouse (b), hos not furnished returns for o continuous period of six months; or

(d) ony person who hos token voluntory registrotion under sub-section⁽³⁾ of sedion 25 hos not commenced busi- ness within six months trom the dote of registrotion; or

43

111

(e) registrotion hos been obtoined by meons offroud, wilful misstotement or suppression offocts:

Provided thot the proper officer sholl not concel the registrotion without giving the person on opportunity of being heord.

(3) The concellotion of registrotion under this sedion sholl not offed the liobility of the person to^poy tox ond other dues under this Act or to dischorge ony obligotion under this Act or the rules mode thereunderfor ony period prior to the dote oI concellotion whether or not such tox ond other dues ore determined before or ofter the dote of concellotion.

(4) The concellotion of registrotion under the Centrol Goods ond Services Tox Act sholl be deemed to be o concellotion of registrotion under this Ad.

(5) Every registered person whose registrotion is concelled sholl poy on omount, by woy of debit in the electronic credit ledger or electronic cosh ledger, equivolent to the credit of inputtox in respect of inputs held in stock ond inputs contoined in semi-finished or finished goods held in stock or copitol goods or plont ond mochinery on the doy imme- diotely preceding the dote ofsuch concellotion or the output tox poyoble on such goods,

whichever is higher, colculoted in such monner os moy be

prescribed:

t15 Provided thot in cose of copitol goods or plont ond mochinery, the toxoble person sholl poy on omount equolto the inputtox credittoken on the soid copitol goods or plont ond mochinery, reduced by such percentoge points os moy be prescribed or the tox on the tronsoction volue of such copitol goods or plont ond mochinery under section 15, whichever is higher.

(6) The omount poyoble under sub- section (5) sholl be colculoted in such monner os moy be

prescribed.

30. (l ) Subiect to such conditions os moy be prescribed, ony registered person, whose registrotion is concelled by the proper officer on his own motion, moy opplyto such officer for revocotion of con- cellotion of the registrotionⁱⁿ the prescribed monner within thirty doys from the dote of service of the concellotion order.

(2) The proper officer moy, in such monner ond within such period os moy be prescribed, by order, either revoke concellotion of lhe registrotion or reject the opplicotion:

Provided thot the opplicotion for revocotion of co n ce llotion of registrotion sholl not be rejected unless the opplicont hos been given on opportunity of being heord.

(3) The revocotion of concellotion of registrotion under the Centrol Goods ond Services Tox Act sholl be deemed to be o revocotion of concellotion of registrotion under this Ad.

Revocotion

of concello-

tion of

registrotion.

45

116

CHAPTER- VII

TAX INVOICE, CREDITAND DEBIT

NOTES

31. (1) A registered person supplying toxoble goods sholl, b€fore or ot the time ol,-

(o) removol of goods for supply to the recipient, where the supply invofues movement of goods; or

(b) delivery of goods or moking ovoiloble thereol to the recipient, in ony other cose, issue o tox invoice showing tfre description, quontity ond volue of goods, the tox chorged thereon ond such other porticulors os moy be prescribed:

Provided thot the Government moy, on the recommendotions of the Council, by notificotion, specify the cotegories of goods or supplies in respect of which o tox invoice sholl be issued, within such time ond in such monner os moy be prescribed.

(2) A registered person supplying toxoble services sholl, before or ofter the provision of service but within o prescribed period, issue o tox invoice, showing the description, volue, tox chorged trcreon ond such other porticulors os moy be prescribed:

Provided thot the Government moy, on the recommendotions of the Council, by notificotion ond subiect to such conditions os moy be mentioned therein, specify the cotegories of services in respect of which-

Tox invoice

t17

(o) ony other document issued in relotion to the supply sholl be deemed to be o tox

invoice; or

(b) tox invoice moy not be issued.

(3) Notwithstonding onything con- toined in sub-sections (l ) ond

(2) -

(o) o registered person moy, within one month from the dote of issuonce of certifi- cote of registrotion ond in such monner os moy be prescribed, issue o revised invoice ogoinst the invoice olreody issued during the period beginning with the effective dote of registrotion till the dote of issuonce of certificote of registrotion to him;

(b) o registered person moy not issue o tox invoice if the volue of fre goods or services or both supplied is less thon two hundred rupees subject to such conditions ond in such monner os moy be

prescribed;

(c) o registered person supplying exempted goods or services or both or poying tox under the provisions of section l0 sholl issue, insteod of o tox invoice, o bill of supply contoining such porticulors ond in such monner os moy be prescribed:

47

148

Provided thot the registered person moy not issue o bill of supply if the volue of the goods or services or both supplied is less thon two hundred rupees subject to such conditions ond in such monner os moy be prescribed;

(d) o registered person sholl, on receipt of odvonce poyment with respect to ony supply of goods or services or both, issue o receipt voucher or ony other document,

contoining such porticulors os moy be prescribed,

evidencing receipt of such poyment

(e) where, on receipt of odvonce poyment with resped to ony supply oi goods or services or both the registered person issues o receiptvoucher, but subsequently no supply is mode ond no tox invoice is issued in pursuonce thereof, the soid registered person moy issue to the person who hod mode the poyment, o refund voucher ogoinst such poyment;

(f) o registered person who is lioble to poy tox under sub- section (3) or sub-sedion (4) of section 9 sholl issue on invoice in respect of goods or services or both received by him from the supplier who is not registered on the dote of receipt of goods or services or both;

t19

(g) o registered person who is lioble to poy tox under sub- section (3) or sub-seaion (4) of section 9 sholl issue o poyment voucher ot the time of moking poyment to the supplier.

(4) ln cose of continuous supply of goods, where successive

stotements of occounts or successive poyments ore involved, the invoice sholl be issued before or ot the time eoch such

stotement is issued or, os the cose moy be, eoch such poyment is received.

(5) Subiect to the provisions of clouse

(d) of sub-section (3), in cose of continuous supply of services,--

(o) where the due dote of poyment is oscertoinoble from the controct, the invoice shqll be issued on or before the due dote of poyment;

(b) where the due dote of poyment is not oscertoinoble from the controct the invoice sholl be issued before or ot the time when the supplier of service receives the poyment;

(c) where the poyment is linked to the completion of on event, the invoice sholl be issued on or before the dote of completion ofthot event.

(6) ln o cose where the supply of services ceoses under o controct before the completion of the supply, the invoice sholl be issued

49

150

ot the time when the supply ceoses ond such invoice sholl be issued to the extent of he supply mode before such cessotion.

(7) Notwithstonding onything contoined in sub-section (l ), where the goods being sent or Eken on opprowlfor sole or retum ore removed before the supply tokes ploce, the invoice sholl be issued before or ot the time of supply or six months from the dote of removol, whichever is eorlier.

Exp lo n otio n.-F or the purposes of this seaion, the expression 'tox invoice" sholl include ony revised invoice issued by the supplier in respect of o supply mode eorlier.

32. (l) A person who is not o registered person sholl notcollea in respect ol ony supply of goods or services or both ony omount bywoy oftox under this Act.

(2) No registered person sholl colled tox except in occordonce with the provisions of this Act or the rules mode thereunder.

33. Notwithstonding onything contoined in this Act or ony other low for the time being in force, where ony supply is mode for o considerotion, every person who is lioble to poy toxfor such supply sholl prominently indicote in oll documenb reloting to ossessment, tox invoice ond other like documents, the omount of tox which sholl form port of the price otwhich such supply is mode. Prohibition

oI unoutho-

rised colle-

ction of tox

Amount of

tox to be

indicoted in

tox invoice

ond other

documents.

l5l

34. (l) Where o tox invoice hos been issued for supply of ony goods or services or both ond the toxoble volue or tox chorged in thot tox invoice is found to exceed the toxoble volue or tox poyoble in respect of such supply, or where the goods supplied ore returned by the recipient, or where goods or services or both supplied ore found to be deficient,^the registered person, who hos supplied such goods or services or both, moy issue to the recipient o credit note contoining such porticulors os moy be prescribed.

(2) Any registered person who issues o credit note in relotion to o supply of goods or services or both sholl declore the detoils of such credit note in the return for the month during which such credit note hos been issued but not loter thon September lollowing tre end of the finonciol yeor in which such supply wos mode, or the dote of furnishing oI the relevont onnuol return, whichever is eorlier, ond the tox liobility sholl be odiusted in such monner os moy be

prescribed:

Provided tM no redudion in out- put tox liobility of the supplier sholl be permifted, if the incidence of tox ond interest on such supply hos been possed on to ony other person.

(3) Where o tox invoice hos been issued for supply o{ ony goods or services or both ond the toxoble volue or tox chorged in thot tox invoice is found to be less thon Credit ond

debit notes.

51

152

the toxoble volue or tox poyoble in respect of such supply, the registered person, who hos supplied such goods or services or both, sholl issue to the recipient o debit note contoining such porticulors os moy be prescribed.

(4) Any registered person who issues o debit note in relotion to o supply ol goods or services or both sholl declore the detoils oi such debit note in the return lor the month during which such debit note hos been issued ond the tox liobility sholl be odjusted in such monner os moy be prescribed.

Explo notion.-F or the purposes of this Act, the expression "debit note"sholl include o supplementory invoice.

CHAPTER.^VIII

ACCOUNTSAND RECORDS

35. (l ) Every registered person sholl keep ond mointoin, ot his principol ploce of business, os mentioned in the certificote of registrotion, o true ond correct occount of-

(o) produdion or monu{octure of goods;

(b) inword ond outword supply of goods or services or both;

(c) stock of goods;

(d) input tox credit ovoiled;

(e) output tox poyoble ond poid; ond

(f) such other porticulors os moy be prescribed:

Accounts

ond other

records.

153

Provided lhot where more thon one ploce of business is specified in the certificote ol registrotion, the occounts reloting to eoch ploce of business sholl be kept ot such ploces of business:

Provided further thot the

registered person moy keep ond moinloin such occounts ond other porticulors in electronic form in such monner os moy be prescribed.

(2) Every owner or operotor o{ worehouse or godown or ony other ploce used for storoge of goods ond every tronsporter, irrespective of whether he is o registered person or not, sholl mointoin records of the consigner, consignee ond other relevont detoils of the goods in such monner os moy be prescribed.

(3) The Commissioner moy notify o closs of toxoble persons to mointoin odditionol occounts or documents for such purpose os moy be specified therein.

(4) Where the Commissioner considers thot ony closs of toxoble persons is not in o position to keep ond mointoin occounts in occordonce with the provisions ol this sedion, he moy, for reosons to be recorded in writing, permit such closs of toxo ble persons to mointoin occounts in such monner os moy be prescribed.

(5) Every registered person whose turnover during o finonciol^yeor exceeds the prescribed limit sholl get his occounts oudited by o

t54 chortered occountont or o cost occountont ond sholl submit o copy of the oudited onnuol occounts, the recon ciliotion stotement under sub-seaion⁽²⁾ of section 44 ond such other documents in such form^ond monner os moy be prescribed.

(5) Subiect to the provisions of clouse

(h) of sub-section (5) of section 17, where the registered person foils to occount lor the goods or services or both in occordonce with the provisions of sub-section (l), the proper officer sholl determine the omount of^tox poyoble on the goods or services or bottr thot ore not occounted for, os if such goods or services or both hod been supplied by such person ond the provisions of section 73 or sedion74, os the cose moy be, sholl, mutotis mutondis, opply for determinotion of such tox.

36. Every registered person required^to keep ond mointoin books ol occount or other records in occordoncewith the provisions of sub-section (l ) of section 35 sholl retoin them until the expiry of seventy two months from the due dote of fumishing of onnuol retum for tre yeor pertoining to such occounts ond records:

Provided thot o registered

person, who is o porty to on oppeol or revision or ony other proceedings before ony Appellote Authority or Revisionol Authority or Appellote Tribunolor court, wheher filed by him or by the Commissioner, or^is under Period oI

retention

of occounts

54

r55 investigotion for on offence under ChopterXlX, sholl retoin the books of occount ond other records pertoining to the subiect motter ol such oppeol or revision or proceedings or investigotion for o period of one yeor ofter finol disposol ol such oppeol or revis ion or proceedings or investigotion, or lor the period specilied obove, whichever is loter.

CHAPTER. IX

RETURNS

37. (1) Every registered person, otherfun on lnput Service Distributor, o non- resident toxoble person ond o person poying tox under the

provisions of section l0 or sedion 5l or section 52, sholl furnish, electronicolly, in such form ond monner os moy be prescribed, the detoils of outword supplies of goods or services or both effected during o tox period on or before the tenth doy of the month

succeeding the soid tox period ond such detoils sholl be

communicoted to the recipient of the soid supplies within such time ond in such monner os moy be

prescribed:

Provided thot the registered

person sholl not be ollowed to lurnish the detoils of outword supplies during the period from the eleventh doy to the fifteenth doy of the month succeeding the tox period:

Provided further thot the

Commissioner moy, for reosons to be recorded in writing, by notificotion, extend the time limit for furnishing such detoils lor such closs ol toxoble persons os moy be specified therein:

Furnishing

detoils of

outword

supplies.

55

r56 Provided olso thot ony extension of time limit notified by^the Commissioner of centrol toxsholl be deemed to be notified by the Commissioner.

(2) Every registered person who hos been communicoted the detoils under sub-section (3) of section 38 or the detoils pertoining to inword supplies of lnput Service Distributor under sub-section⁽⁴⁾ ol section 38, sholl either occept or reject the detoils so communicoted, on or belore the seventeenth doy, but not before the fifteenth doy, of the month succeeding the tox period ond the detoils furnished by him under sub-section (l) sholl stond omended occordinqly.

(3) Any registered person, who hos furnished the detoils under sub- section (l ) for ony tox period ond which hove remoined unmotched under section 42 or section 43, sholl, upon discovery ofony error or omission therein, rectily such error or omission in such monner os moy be prescribed, ond sholl poy the tox ond interest, if ony, in cose there is o short poyment of tox on occount of such error or omission, in the return to be furnished for such tox period:

Provided thot no rectificotion ol error or omission in respect of the detoils furnished under sub-section

(1) sholl be ollowed ofter iurnishing of the return under section 39 for the

56

157

monh of September following the end of the finonciol yeor to which such detoils pertoin, or lurnishing of the relevont onnuol return, whichever is eorlier.

Explonation.--For the purposes of this Chopter, the expression 'Aetoils of outword supplies" sholl include detoils of invoices, debit notes, credit notes ond revised invoices issued in relotion to outword supplies mode during ony tox period.

38. (l) Every registered person, other thon on lnput Service Distributor or o non-resident toxoble person or o person poying tox under the provisions of section l0 or seclion 51 or section 52, sholl verify, volidote, modify or delete, if required, the detoils reloting to outword supplies ond credit or debit notes communicoted under sub-section^(l ) of section 37 to prepore the detoils of his inword supplies ond credit or debit notes ond moy include therein, the detoils of inword supplies ond credit or debit notes received by him in respect of such supplies thot hove not been declored by the supplier under sub-section (l ) oI section 37.

(2) Every registered person, other thon on lnput Service Distributor or o non-resident toxoble person or o person poying tox under the provisions of section l0 orsection 5l or section 52, sholl furnish, electronicolly, the detoils ol inword supplies of toxoble goods or services or both, including Furnishing

detoils of

inword

supplies.

158

inword supplies of goods or services or both on which the tox is poyoble on reverse chorge bosis under this Act ond inword supplies of goods or services or both toxoble under the lntegroted Goods ond Services Tox Act or on which integroted goods ond services tox is poyoble under section 3 ol the Customs Toriff Act, 1975, ond credit or debit notes received in respect of such supplies during o tox period ofter the tenth doy but on or before the fifteenth doy of the month succeeding the tox period in such torm ond monner os moy be prescribed:

Provided thot fre Commissioner moy, for reosons to be recorded in writing, by notificotion, extend the time limit for lurnishing such detoils {or such closs oftoxoble persons os moy be specified therein:

Provided further thot ony

e>

(3) The detoils of supplies modified, deleted or included by the recipient ond furnished undersub- section (2) sholl be commu- nicoted to the supplier concerned in such monner ond within such time os moy be prescribed.

(4) The detoils of supplies modified, deleted or included by the recipient in the return furni- shed under sub-section (2) or

r59 sub-sedion (4) o, section 39 sholl be communicoted to the supplier concerned in such monner ond within such time os moy be prescribed.

(5) Any registered person, who hos furnished the detoils under sub- sedion⁽²⁾ for ony tox period ond which hove remoined unmotched under sedion 42 or section 43, sholl, upon discovery ofony error or omission therein, rectify such error or omission in the tox period during which such error or omission is noticed in such monner os moy be prescribed, ond sholl^poy the tox ond interest, if ony, in cose there is o short poyment of tox on occount of such error or omission, in the return to be furnished for such tox period:

Provided thot^no rectificotion ol error or omission in respect o, the detoils f urnished under sub-section

(2) sholl be ollowed ofter furnishing of the return under section 39 for the month of September following the end of the finonciol yeor to which such detoils pertoin, or {urnishing of the relevont onnuol return, whichever is eorlier.

39.^(l ) Every registered person, otherthon on lnput Service Distributor or o non-resident toxoble person or o person poying tox under the

provisions of sedion l0 or sedion 51 or section 52 sholl, ior every colendor month or port thereof, furnish, in such form ond monner os moy be prescribed, o return, Furnishing

d

returns.

59

r60 electronicolly, of inword^ond outword supplies of goods or services or both, input tox credit ovoiled, tox poyoble, tox poid ond such other porticulors os moy be prescribed on or before the twentieth doy of the month succeeding such colendor month or port thereof.

(2) A registered person poying tox under the provisions of sedion l0 sholl, for eoch quorter or^port thereof, furnish, in such form ond monner os moy be prescribed, o return, electronicolly, of turnover in the Stote, inword supplies of goods or services or both, tox poyoble ond tox poid within eighteen doys ofter the end of such quorter.

(3) Every registered person required to deduct tox ot source under the provisions of section 5l sholl furnish, in such form ond monner os moy be prescribed, o return, electronicolly, for the month in which such dedudions hove been mode within ten doys ofter the end of such month.

(4) Every toxoble person registered os on lnput Service Distributor sholl, for every colendor month or port thereof, lurnish, in such form ond monner os moy be

prescribed, o return, electronicolly, within thirteen doys ofter the end of such month.

(5) Every registered non-resident toxoble person sholl, lor every colendor month or port thereof, furnish, in such form ond monner

60

t6l os moy be prescribed, o return, electronicolly, within twenty doys ofter the end of o colendor month orwithin seven doys ofter the lost doy ol the period of registrotion specified under sub-section (l ) of section^27, whichever is eorlier.

(6) The Commissioner moy, for reosons to be recorded in writing, by notificotion, extend the time limit for furnishing the returns under this section for such closs of registered persons os moy be specified therein:

Provided thot ony extension of time limits notified by the Commissioner of centroltox sholl^be deemed to be notified by the Commissioner.

(7) Every registered person, who is required to furnish o return under sub-section (l ) or sub-section⁽²⁾ or sub-section (3) or sub-section (5), sholl poy to the Government the tox due os^per such return not loter thon the lost dote on which he is required to furnish such return.

(8) Every registered person who is required to furnish o return under sub-section (l ) or sub-section⁽²⁾ shollfurnish o return for every tox period whether or not ony supplies of goods or seryices or both hove been mode during such tox period.

(9) Subiect to the provisions of sections 37 ond 38, if ony registered person ofter furnishing o return under sub-section (l )or sub-seaion⁽²⁾ sub-sedion⁽³⁾ or sub-section⁽⁴⁾ or sub-section⁽⁵⁾

61

t62 discovers ony omission^or incorred porticulors therein, other thon os o result of scrutiny, oudit, inspection or enforcement odivity by the tox outhorities, he sholl rectify such omission or incorrect porticulors in the return to be furnished for the month or quorter during which such omission or incorrect porticulors ore noticed, subiect to poyment of interest under this Act:

Provided thot no such recti- ficotion of ony omission or incorrect porticulors sholl be ollowed ofter the due dote for {urnishinq of return for the month of September or second quorter following the end of the finonciol yeor, or the octuol dote of lurnishing of relevont onnuol return. whichever^is eorlier.

(10) A registered person sholl notbe ollowed to furnish o return {or o tox period if the return for ony of the previous tox periods hos not been furnished by him.

40. Every registered person who hos mode outword supplies in the period between the dotes on which he become lioble to registrotion till the dote on which registrotion hos been gronted sholl declore the some in the lirst return furnished by him ofter gront of registrotion.

41. (l) Every registered person sholl, subject to such conditions ond restrictions os moy be prescribed, be entitled to toke the credit of eligible input tox, os self- ossessed, in his return ond such omount sholl be credited on o provisionol bosis to his electronic credit ledger.

Cloim of in-

put tox

credit ond

provisionol

occeptonce

thereof.

First Return.

62

l6l

(2) The credit referred to in sub- section^(l ) sholl be utilised only for poyment of self-ossessed output tox os per the return referred to in the soid sub-section.

42. (l ) The detoils ol every inword supply furnished by o registered person (hereofter in this section refened to os the "recipient') for o tox period sholl, in such monner ond within such time os moy be

prescribed, be motched-

(o) with the correspon ding detoils of outword supply furnished by the corres- ponding registered person (hereofter in this section referred to os the "supplierJ in his volid return for the some tox period or ony preceding tox period;

(b) wih tre integroted groods ond services tox poid under section 3 of the Customs Toriff Act, 1975 in respect of goods imported by him; ond

(c) {or duplicotion of cloims of input tox credit.

(2) The clcrim of input tox credit in resped o{ invoices or debit notes reloting to inword supply thot motch with the detoils of

corresponding outword supply or with the integroted goods ond services tox poid under sedion 3 of the Customs Toriff Act, 1975 in respea of goods imported by him sholl be flnolly occepted ond such occeptonce sholl be communi- coted, in such monner os moy be prescribed, to the recipient. Motching,

reversol

ond recloim

of input

tox credit.

5l of 1975.

5l of 1975

63

164

(3) Where the lnput tox credit cloimed by o recipient in respect of on inword supply is in excess of the tox declored by the supplierforthe some supply or the outword

supply is not declored by the supplier in his volid returns, the discreponcy sholl be communi- coted to both such persons in such monner os moy be

prescribed.

(4) The duplicotion of cloims of input tox credit sholl be communicoted to the recipient in such monner os moy be prescribed.

(5) The omount in respect of which ony discreponcy is communicoted under sub-section (3) ond which is not rectified by the supplier in his volid return for the monthⁱⁿ wh ich discreponcy is

communicoted sholl be odded to the output tox liobility of the recipient, in such monner os moy be prescribed, in his return for the month succeeding the month in which the discreponcy is

communicoted-

(6) The omount cloimed os input tox credit thot^is found to be in excess on occount of duplicotion of cloims sholl be odded to the output tox liobility ofthe recipient in his return for the month in which the

duplicotion is communicoted.

(7) The recipient sholl be eligible to reduce, from his output tox liobility, the omount odded under sub-section (5), if the supplier declores the detoils ofthe invoice or debit note in his volid return within the time specified in sub-

t65 section (9) of section 39

(8) A recipient in whose output tox liobility ony omount hos been odded under sub-section (5) or sub-section (6), sholl be lioble to poy interest ot the rote specified under sub-section (l ) of section 50 on the omount so odded irom the dote of ovoiling of credit till the corresponding odditions ore mode under the soid sub-sections.

(9) Where ony reduction in output tox liobility is occepted under sub- section (7), the interest poid under sub-section⁽⁸⁾ sholl be refunded to the recipient by crediting the omount in the corresponding heod of his electronic cosh ledger in such monner os moy be prescribed:

Provided thot the omount of interest to be credited in ony cose sholl not exceed the omount of interest poid by the supplier. ('10) The omount reduced from the output tox liobility in controvention ofthe provisions of sub-section (7) sholl be odded to the output tox liobility of the recipient in his return for the month in which such

controvention tokes ploce ond such recipient sholl be lioble to poy interest on the omount so odded otthe rote specified in sub-seaion

(3) of section 50.

43. (l) The detoils of every credit note reloting to outword su pp ly furnished by o registered person (hereofter in this section referred to osthe "supplier') for o tox period sholl, in such monner ond within such time os moy be prescribed, be motched--

Motching,

reversol

ond recloim

d

reduction in

output

tox liobility.

65

t66

(o) with the corresponding reduction in the cloim^for input tox credit by the corresponding registered person (hereofter in this section referred to os the 'lecipient') in his volid return for the some tox period or ony subsequent tox period; ond

(b) for duplicotion of cloims for reduction in output tox liobility.

(2) The cloim for redudion in output tox liobility by the supplier thot motches with the corresponding reduction in *re cloim for input tox credit by the recipient sholl be finolly occepted ond communi- coted, in such monner os moy be prescribed, to the supplier.

(3) Where the redudion of ouFuttox liobility in respect of outword supplies exceeds the corres- ponding reduction in ttre cloim for input tox credit or the corres- ponding credit note is not declored by the recipient in his volid returns, tre discreponcy sholl be communicoted to both such persons in such monner os moy be prescribed.

(4) The duplicotion of cloims for reduction in output tox liobility sholl be communicotid to the supplier in such monner os moy be prescribed.

(5) The omount in respect of which ony discreponcy^is communicoted under sub-section (3) ond which is oot rectified by the recipient in

66

124

cotegory is used by o registered person for moking on outword toxoble supply of the some cotegory of goods or services or both or os on element of o toxoble composite or mixed supply;

(ii) membership of o club, heolth ond fitness cente;

(iii) rento-cob, life insuronce ond heolth insuronce

except where^-

(A) the Government notifies the services which ore obligotory for on employerto provide to its employees under ony low for the time being in force; or

(B) such inword supply of goods or services or both of o porticulor cotegory is used by o registered person {or moking on outword toxoble supply^of the some cotegory of goods or services or both or os port of o toxoble composite or mixed supply; ond

(iv) tovel benefits extended to employees on voco- tion such os leove or home trovel concession.

(c) works conroct services when supplied or construdion^of on immovoble property (other thon plont ond mochinery) except where it is on input service lor further supply of works controct service;

123

Provided further thot the restriction of fifty percent sholl not opply to the tox poid on supplies mode by one registered person to onother registered person hoving the some PermonentAccount Number.

(5) Notwithstonding onything con- toined in sub-seaion (l ) of sedion l6 ond sub-section (l ) of sedion 18, input tox credit sholl not be ovoiloble in respect of the following, nomely:-

(o) motor vehicles ond other conveyonces except when they ore used-

(i) for moking the {ollowing toxoble s u pplies,

nomely : --

(A) furher supply of such vehicles or convey- onces; or

(B) tronsportotion of possengers; or

(C) importing troinlng on drMng, flying, nwige ting such vehicles or conveyonces;

(ii) for tronsportotion of goods;

(b) the following supply of goods or services or both:-

(i) food ond beveroges, outdoor cotering, beouty treotment, heolth ser- vices, cosmetic ond plostic surgery except where on inword supply of goods or services or both of o^po rticu lo r

122

(2) Where the goods or services or both ore used^by the registered person pordy for effeaing toxoble supplies including zero-roted supplies under this Act or under tle lntegrqted Goods ond SeMces Tox Act ond portly for effecting exempt supplies under lhe soid Acts, the omount of credit sholl be restricted to so much of the input tox os is otfibutoble to the soid toxoble supplies including zereroted supplies.

(3) The volue of exempt supply under sub-sedion⁽²⁾ sholl be such os moy be prescribed, ond sholl include supplies on which the recipient is lioble to poy tox on reverse chorge bosis, trons- octions in securities, sole of lond ond, subject to clouse (b) of porogroph 5 of Schedule ll, sole of building.

(4) A bonking compony or o finonciol institution including o non-bonking finonciol compony, engoged in supplying services by woy of occepting deposits, extending loons or odvonces sholl hove the option to either comply with the provisions of sub-section (2), or ovoil of, every month, on omount equol to fifty per cent.^of fie eligible input tox credit on inputs, copitol goods ond input services in thot month ond the rest sholl lopse:

Provided thot the option once exercised sholl not be withdrown during the remoining port of the finonciol yeor:

ri .

l2t doys from the dote of issue of invoice by the supplier, on omount equol to the input tox credit ovoiled by the recipient sholl be odded to his output tox liobility, olong with interest thereon, in such monner os moy be prescribed:

Provided olso thot the recipient sholl be entitled to ovoil of the credit of inputtox on poyment mode by him of the omount towords the volue of supply of goods or services or both olong with tox poyoble thereon.

(3) Where the registered person hos cloimed depreciotion on the tox component of the cost of copitol goods ond plont ond mochinery under the provisions of the lncome-tox Act, 1961, the input tox credit on the soid tox component sholl not be ollowed.

(4) A registered person sholl not be entitled to toke input tox credit in respect of ony invoice or debit note for supply of goods or services or both ofter *re due dote of furnishing of the return under section 39 for the month of September following the end of {inonciol yeor to which such invoice or invoice reloting to such debit note pertoins or lurnishing of the relevont onnuol return, whichever is eorlier.

17. (l) Where the goods or services or both ore used by the registered person portly for the purpose of ony business ond portly for other purposes, the omount of credit sholl be restriaed to so much of the input tox os is ottributoble to the purposes of his business. Apportion-

ment of

creodit ond

blocked

credits.

43 of l96l .

70

t20

(o) he is in possession of o tox invoice or debit note issued by o supplier registered under thisAct. or such other tox poying documents os moy be prescribed;

(b) he hos received the goods or services or both.

Etplonotion.- For the purposes of this clouse, it sholl be deemed thot fre registered person hos received tfre goods where tre goods ore delivered by the supplier to o recipient or ony other person on the direction of such registered person, whether oding os on ogent or otherwise, before or during movement ofqoods, either by woy of tronsfer ol documents oI title to goods or otherwise;

(c) subiect to the provisions of section 41, the tox chorged in respect oI such supply hos been octuolly poid to the Government, either in cosh or through utilisotion of input tox credit odmissible in respect of the soid supply; ond

(d) he hos furnished the return under section^39:

Provicieci thot whei; ,he .:oods ogoinst on invcice ore,,,:.,.;.-.C irrots or instoimexts, ihe reEisl. !i-J iier-.^Dn sholl be entitled to toii,, i'..j,t Jpon receipt :l the :ost ict !. i '-'. ne!:l:

Provideci further rnot *here o recipient foils to poy to the eupplier of goods or services or Drr, oiher thon the supplies on whicn tox is poyoble on reverse chorge bosis, the omount towords the volue of supply olong witlt tox poyoble thereon within o period of one hundred ond eighty

71

I t9

(v) one of them directly or indirecdy conkols the other;

(vi) both of them ore directly or indirecdy conrolled by o hhd pefson;

(vii) together they directly or indirectly control o third person; or

(viii) they ore members of the some fomily;

(b) the term 'person' olso includes legol persons.

(c) persons who ore ossocioted in dre business of one onother in thot one is the sole ogent or sole disfibutor^or sole concessionoire, howsoever described, oftre other, sholl be deemed to be reloted. CHAPTER^- V

INPUTTAX CREDIT

r6. (r)

(2)

Every registered person sholl, subiect to such conditions^ond restrictions os moy be prescribed ond in the monner specifiedⁱⁿ section 49, be entitled to toke credit of input tox chorged on ony supply of goods or sewices or boltt to him which ore used or intended to be used in the course^or furtheronce of his business ond the soid omount sholl be credited to the elecronic credit ledger of such person.

Notwithstonding onything con- toined in this section, no regis- tered person sholl be entitled to the credit of qny inpul tox in re- sped of ony supply of goods or services or both to him unless,- Eligibility ond

conditionsfor

toking input

tox credit.

72

I l8

(ii) input tox credit os is ottributoble to the discount on the bosis of document issued by tle supplier hos been

rwersed by the recipient of the supply.

(4) Where the volue of the supply of goods or servkes or both connot be determined under sub,section (l ), the some sholl be determined in such monner os moy be

prescribed.

(5) Notwithstonding onything contoined in sub-section (l) or sub-section (4), the volue of such supplies os moy be notified by the Government on the recommen- dotions of the Council sholl be determined in such monner os moy be prescribed.

Explonotion.- For the purposes of fris Act,-

(o) persons sholl be deemed to be 'leloted persons" if -

(i) such persons ore officers or directors of one onother⁵ businesses;

(ii) such persons ore legolly recognised portners in business;

(iii) such persons ore employer ond employee;

(iv) ony person directly or indirectly owns, controls or holds twenty-five^per cent. or more of the outstonding voting stock or shores oI both of them;

73

tt7

(c) incidentol expenses, including commission ond pocking, chorged by the supplier to the recipient of o su pply ond ony omount chorged lor onything done by the supplier in respect ofthe supply ol goods or services or both ot the time of, or before delivery of goods or supply of services;

(d) interest or lote iee or penolty for deloyed poyment o, ony considerotion for ony supply; ond

(e) subsidies directly linked to the price excluding subsidies provided by the Centrol Government ond Stote

Govemmenb.

Explanation.-F or the purposes of this sub-section, the omount of subsidy shollbe included in the volue of supply of fre supplier who receives the subsidy.

(3) The volue of the supply sholl not include ony discount which is given-

(o) before or ot the time of the supply if such discount hos been duly recorded in the invoice issued in respect of such supply; ond

(b) ofter the supply hos been effeaed, if-

(i) such discount is estobli- shed in terms of on

ogreement entered into ot or before the time of such supply ond

specif icolly linked to relevont invoices; ond

74

ll6 tre bonk occount is ofter four working doys lrom the dote of chonge in the role of tox.

Explonotion.-F or the purposes ofthis section, the dote of receipt of poyment"sholl be the dote on which the poyment is entered in the books of occount ofthe supplier or the dote on which the poyment is credited to his bonkoccounl whichever is eorlier.

15. (l) The volue of o supply of goods or services or both sholl be the tronsoction volue, which is the price octuolly poid or poyoble lor the soid supply of goods or

seMces or botr where fre supplier ond the recipient ofthe supplyore not reloted ond the price is the sole considerotion for the supply.

(2) The volue of supply sholl include-

(o) ony toxes, duties, cesses, fees ond chorges levied under ony low for the time being in force other thon thisAct the Centrol Goods ond Services Tox Act ond the Goods ond Services Tox (Compensotion to Stotes) Act, if chorged seporotely by the supplier;

(b) ony omount *rot tre supplier is lioble to poy in relotion to such supply but which hos been incurred by the

recipient of the supply ond not included in the price octuolly poid or poyoble for the goods or services or both;

Volue of

toxoble

supply.

75

II'

(ii) where the invoice hos been issued prior to the chonge in rote oI tox but poyment is received ofter the chonge in rote oI tox, the time of supply sholl be the dote of issue of invoice; or

(iii) where the poyment hos been received before the dungeⁱⁿ rote of tox, but the invoice for the some is issued ofter the chonge in rote of tox, the time of supply sholl be the dote of receipt of poyment;

(b) in cose the goods or services or both hove been supplied ofter the chonge in rote of tox,-

(i) where fie poyment is received ofter the chonge in rote o{ tox but the invoice hos been issued prior to the chonge in rote of tox, the time of supply sholl be the dote of receipt of poyment; or

(ii) where the invoice hos been iss ued ond poyment is received before *re chonge in rote of tox, the time of supply sholl be the dote of receipt of poyment or dote of issue ol invoice, whichever is eorlier; or

(iii) where the invoice hos been issued ofter the chonge in rote of tox but the poyment is received beJore tre chonge in rote of tox, the time of supply sholl be the dote of issue of invoice:

Provided thot the dote of receipt of poyment sholl be the dote ofcredit in the bonk occount if such credit in

76

ttl

(b) the dote of redemption of voucher, in oll other coses.

(5) Where it is not possible to detemine lhe time of supply under the provisions of subsection⁽²⁾ or sub.sedion (3) or sub-section (4), the time of supply sholl -(o) in o cose where o periodicol return hos to be liled, be the

dote on which such return is

to be filed; or

(b) in ony other cose, be the dote on which tle tox is poid.

(6) The time of supply to the extent it relotes to on oddition in the volue of supply by woy of interest, lote fee or penolty lor deloyed poyment of ony considerotion sholl be the dote on which the supplier

receives such oddition in volue.

14. Notwithstonding onything contoined in sedion 12 or section I 3, the time of supply, where there^is o chonge in the rote of tox in respect o{ goods or services or both, sholl be determined in the following monner, nomely:-

(o) in cose the goods or services or botr hove been supplied before fie chonge in rote of tox,-

(i) where he invoice for the some hos been issued ond the poyment is olso received ofter the chonge in rote of tox, the time oI supply sholl be the dote of receipt of poyment or the dote of issue of invoice, whichever is eorlier; or

Chongeⁱⁿ

rote of

tox in

resped of

supply of

goods or

services.

77

u3 occount of tre supplier or tte dote on which the poyment is credited to his bonk occount whichever is eorlier.

(3) ln cose oI supplies in respect of which tox is poid or lioble to be poid on reverse chorge bosis, the time of supply sholl be the eorlier of the following dotes, nomely:-

(o) the dote of poyment os entered in the books of occount of the recipient or the dote on which the poyment is debited in his bonk occount, whichever is eorlier; or

(b) the dote immediotely following sixty doys from the dote of issue ol invoice or ony other document, by whotever nome colled, in lieu thereof by the supplier:

Provided thot where it is not possible to determine the time of supply under clouse (o) or clouse (b), the time of supply sholl be the dote of entry in the books of occount of the recipient of supply:

Provided further thot in cose of supply by ossocioted enterprises, where the supplier of service is locoted outside lndio, the time of supply sholl be the dote of entry in the books of occount of the recipient of supply or the dote of poyment, whichever is eorlier.

(4) ln cose of supply of vouchers by o supplier, the time of supply sholl be --

(o) the dote of issue ofvoucher, if the supply is identilioble ot thot poin! or

78

ll2

(o) the dote of issue ol invoice by he supplier,^il the invoice is issued within the period presoibed under sub-section

(2) of section 3l or the dote of receipt of poyment, whichever is eorlier; or

(b) the dote of provision of service, if the invoice is not issued within the period pescribed under subseclion

(2) of section 3l or the dote ol receipt of poyment, whichever^is eorlier; or

(c) the dote on which the recipient shows the receipt of services in his books of occount, in o cose where the provisions of clouse (o) or clouse^(b) do^not opply:

Provided thot where the supplier oftoxoble service receives on omount upto one thousond rupees in excess of the omount indicoted in the tox invoice, tre time of supply^to $e extent of such excess omount sholl, ot the option ol tre soid supplier, be the dote of issue of invoice reloting to such excess omount.

Explonotion.-For the purposes of clouses^(o) ond (b) -

(i) the supply sholl be deemed to hove been mode to the extent it is covered by the invoice or, os the cose moy be, the poymenq

(ii) "the dote oI receipt of poyment" sholl be the dote on which the poyment is entered in the books of

79

l Provided thot where it is not possible to determine the time of supply under clouse (o) or clouse^(b) or clouse (c), the time of supply sholl be the dote of entry in the books of occount of the recipient of supply.

(4) ln cose of supply of vouchers by o supplier, the time of supply sholl be

(o) the dote of issue of voucher, if $e supply is identifioble ot thot point; or

(b) the dote of redemption of voucher, in oll other coses.

(5) Where it is not possible to detetmine tre lime of supply under the provisions of sub-section⁽²⁾ or sub.section (3) or sub-section (4), the time of supply sholl-

(o) in o cose where o periodicol return hos to be filed, be the dote on which such return is to be filed; or

(b) in ony other cose, be the dote on which the tox is poid.

(6) The time of supply to the extent it relotes to on oddition in the volue ol supply by woy of interest, lote fee or penolty for deloyed poyrnent of ony considerotion sholl be the dote on which the supplier

receives such oddition in volue.

13. (l) The liobility to poy tox on services sholl orise ot the time ol supply, os determined in occordonce witlr the pro sions oI this section.

(2) The time of supply of services sholl be tre eorliest of tre following dotes, nomely:-

Time of

supply of

services.

80

ll0 extent^of such excess omounl sholl, ot the option of the soid supplier, be lhe dote of issue of invoice in resped ol such excess omount.

Explonolion l.--For the

purposes ol clouses (o) ond^(b),

"supply" sholl be deemed to hove been mode to the extent it is covered by the invoice or, os the cose moy be, the poyment.

Explanotion 2.-For the purposes ol clouse (b), the dote on which lhe supplier receives the poyment" sholl be the dote on which the poyment is entered in his books of occount or the dote on which the poyment is credited to his bonk occount, whichever is eorlier.

(3) ln cose of supplies in respect of which tox is poid or lioble to be poid on reverse chorge bosis, the dme of supply shollbe the eorliest of the following dotes, nomely:-

(o) the dote oI the receipt of goods; or

(b) the dote o{ poyment os entered in the books of occount of the recipient or the dote on which the poyment is debited in his bonk occount, whichever is eorlier;or

(c) the dote immediotely lollowing thirty doys from the dote of issue of invoice^or ony other document, by whotever nome colled, in lieu thereof by the supplier:

81

109

of tre Centrol Goods ond Services Tox Act sholl be deemed to be o notificotion or, os the cose moy be, on order issued under^this Act.

Explonotion.-For^the purposes^of this section, where on exemption in respect of ony goods or services or both from the whole or port ofthe tox levioble thereon hos been gronted obsolutely, the registered person supplying such goods or services or both sholl not collect the tox, in excess of the effedive rote, on such supply of goods or services or both.

CHAPTER.IV

TIMEAND VALUE OF SUPPLY

12. (1) The liobility to poy tox on goods sholl orise ot the time of supply, os determined in occordonce with the provisions ofthis section.

(2) The time of supply of goods sholl be the eorlier of the lollowing dotes, nomely:-

(o) the dote oI issue of invoice by the supplier or the lost dote on which he is required, under sub-section (l) of section 31, to issue the invoice with respect to the supply; or

(b) the dote on which the supplier receives the poyment with resped to the supply:

Provided thot where the supplier oftcxoble goods receives on omount up to one thousond rupees in excess of the omount indicoted in the^to,. inveice, the time of supply to tlrt, Time oI

supply of

goods

t0E such conditions os moy be specif ied therein, goods or services or both of ony specified description from the whole or ony port of the tox levioble thereon wih effect from such dote os moy be specified in such notificotion.

(2) Where the Govemment is sotisfied thot it is necessory in the public interest so to do, it moy, on the recommendotions of the Council, by speciol order in eoch cose, under circumstonces of on exceptionol noture to be stoted in such order, exemptfrom poyment of tox ony goods or services or both on which tox is levioble.

(3) The Government moy, if it considers necessory or expedient so to do lor the purpose of clorifying the scope or opplicobility of ony notificotion issued under sub-section (1) or order issued under sub-section (2), insert on explonotion in such notiJicotion or order, os the cose moy be, by notificotion ot ony time within one yeor of issue oI the notificotion under sub-section (l) or order under sub-section (2), ond every such explonotion sholl hove etfea os i{ il hod olwoys been the port of the first such notificotion or order, os the cose moy be.

(4) Any notificotion issued by the Centrol Government, on the recommendotions of the Council, under sub-sedion (l) of section ll or order issued under subsection⁽²⁾ ofthe soid section

83

43 of l96l t07

Provided thot where more thon one registered person ore hoving the some Permonent Account Number (issued under the lncome-tox Act l96l),^the registered person sholl not be eligible to opt for tre scheme under sub-section (1) unless oll such registered persons opt to^poy tox under thot sutssection. The option ovoiled of by o registered person under sub- sedion (l ) sholl lopse with effed from the doy on which^his oggregote turnover during o finonciol yeor exceeds the limit specified under sub-section (l ). A toxoble person to whom^the provisions of sub-seaion (l ) opply sholl not collect ony tox from the recipient^on supplies mode by him nor sholl he be entitled to ony credit oI input tox.

l, the proper officer hos reosons to believe thot o toxoble person hos poid tox under sub-section (l) despite not being eligible,^such person sholl, in oddition to ony tox thot moy be poyoble by him under ony other provisions of this Act, be lioble to o penolty ond^the provisions of section 73 or sedion 74 sholl, mutotis mutondis, opply for determinotion oI tox ond penolty.

Where the Govemment is sotisfied thot it is necessory in the public interest so to do, it moy, on the recommendotions of the Council, by notificotion, exempt generolly, either obsolutely or subiect to

(3)

(4)

(s) ll.(l) Power to gront

exemption

from tox.

84

106

(c) holf W cent. of lhe turnover in Stote in cose of other suppliers,

subject to such conditions ond restrictions os moy be prescribed:

Provided thot the Government moy, by notificotion, increose tre soid limit of fifty lokh rupees to such higher omount, not exceeding one

crore rupees, os moy be recom- mended by ttre Council.

(2) The registered person sholl be eligible to opt under sub-section (1), if-

(o) he is not engoged in the supply^of services other thon supplies referred to in clouse

(b) of porogroph 6 of Schedule ;

(b) he is not engoged in moking ony supply of goods which ore not levioble to tox under this Ac!

(c) he is not engoged in moking ony inter- Stote outword supplies of goods;

(d) he is not engoged in moking ony supply of goods through on electronic commerce operotor who is required to collect tox ot source under sedion 52; ond

(e) he is not o monufodurer of such goods os moy be

notified by the Government on the recommendotions of the Council:

10,

to such electronic commerce operotor os if he is the supplier lioble for poying the tox in relotion to the supply of such services:

Provided *rot where on electonic commerce operotor does not hove o physicol presence in the toxoble territory ony person representing such electronic commerce operotor for ony purpose in the toxoble territory sholl be lioble to poy tox:

Provided further thot where on electronic commerce operotor does not hove o physicol presence in the toxoble territory ond olso he does not hove o representotive in the soid territory, such electronic commerce operotor sholl oppoint o person in the toxoble territory for the purpose of poying tox ond such person sholl be lioble to poy tox.

10. (l) Notwithstonding onything to the controry contoinedⁱⁿ this Act but subiect to the provisions of sub- sections (3) ond⁽⁴⁾ of section^9, o registered person, whose oggregote turnover in the preceding finonciol yeor did not exceed fifty lokh rupees moy opt to poy, in lieu of the tox poyoble by him, on omount colculoted ot such rote os moy be prescribed, but not exceeding,-

(o) one per cent oftheturnover in Stote in cose of o monufocfureL

(b) two ond o holf per cent. of the turnover in Stote in cose of persons engoged in

moking supplies referred to in clouse (b) of porogroph 6 of Schedule ll, ond

Composition

levy.

86

(3)

104

oviaion turbine fuel, sholl be levieti with effed lrom such dote os moy be notified by the Government on the recommendotions of the

Council.

The Government moy, on the

recommendotions of the Council, by notifi cotion, specify cotegories of supply o{ goods or seryices or both, the tox on which sholl^be poid on reverse chorge bosis by the recipient of such goods or services or both ond oll the provisions of this Act sholl opply to such recipient os il he is the person lloble lor poying the tox in relotion to the supply of such goods or services or both. The Stote toaln iesFecl of the supply of toxoble goods or services or bofr by o supplier, who is not registered, to o registered person sholl be poid by such person on reverse chorge bosis os fre recipient ond ollthe provrsions of this Act sholl opply to such recipient os if he is ihe person liobie ior poying the t':x^,n relstion to the supply of s.,:l: ioocis or servlces or coth.

The Governmer!, .,-.: .: Jn the reccnrrnendotions ,- ' "),: Ir;acil, by noti{icotion, speciFi r. :teqories of services the tox o.l ir rro-Stote supplies of which shollbe poid by the electronic commerce The operotor if such services ore supplied through it, ond oll the provisions ol this Act sholl opply

(4)

(s)

103

(o) o supply of goods ond not os o supply of services; or

(b) o supply of services ond not os o supply of goods.

8. The tox liobility on o composite or o mixed supply sholl be

determined in the following monner, nomely: -

(o) o composite supply comprising two or^more supplies, one oI which is o principol supply, sholl be treoted os o supply of such principol supply; ond

(b) o mixed supply comprising two or more supplies sholl be treoted os o supply of thot porticulor sqpply which onrocti the highest rote of tox.

9. (l) Subiect to the provisions of sub- section (2), there sholl be levied o tox colled the Arunochol Prodesh goods ond seMces tox on ollinro- Stote supplies oi goods or

services or both, except on the supply of olcoholic liquor for humon consumption, on the volue determined under section I 5 ond ot such rotes, not exceeding twenty per cent., os moy^be

notified by fre Governmenton the recommendotions of the Council ond collected in such monner os moy be prescribed ond sholl be poid by the toxoble person.

(2) The Stote tox on the supply of petroleum crude, high speed diesel, motor spirit (commonly known os petrol), noturol gos ond Tox liobility

on composits

ond mixed

supplies.

Levy ond

collection

t02 exchonge, license, rentol, leose or disposol mode or ogreed to be mode lor o considerotion by o person in the course or furtheronce ol business;

(b) import of services for o considerotion whether or not in the course or furtheronce of business;

(c) the octivities specified in Schedule l, mode or ogreed to be mode without o

considerotion; ond

(d) the octivities to be treoted os supply of goods or supply of services os referred to in Schedule ll.

(2) Notwithstonding onything con- toinedⁱⁿ subsedion (l ),-

(o) octivities or tronsoctions specified in Schedule lll; or

(b) such octivities or tronso- ctions undertoken by the CenEol Government o Stote Government or ony locol outhority in which they ore engoged os public outho- rities, os moy be notified by the Government on the recommendotions of the Council,

sholl be treoted neither os o supply of goods nor o supply ol services.

(3) Subject to the provisions ol sub-seaions (l ) ond (2),^the Government moy, on the recommendotions of the Council, specifY,^bY

notif icotion, the tronsoctions thot ore to be treoted os -

89

l0l lo be the proper officers for the purposes of this Act, subiect to such conditions os the

Government sho ll, on the recommendotions of the Council, by notificotion, specify.

(2) Subject to fie condilions specified in the notificotion issued under sub-seaion⁽ l),-

(o) where ony proper oflicer issues on order under this Act, he sholl olso issue on order under the Centrol Goods ond Services Tox Acq os outtrorised by the soid Act under intimotion to the jurisdidionol officer of centrol tox;

(b) where o proper officer under the Centrol Goods ond

Services Tox Act hos initioted ony proceedings on o subject motter, no proceedings sholl be initioted by the proper officer under this Act on the some subject motter.

(3) Any proceedings for rectificotion. oppeol ond revision, wherever opplicoble, ofony order possed by on officer oppointed under this Act, sholl not lie belore on officer oppointed under the Centrol Goods ond Services Tox Act. CHAPTER - III

LEVYAND COLLECTION OF TAX

7. (l) For the purposes of this Act, the expression "supply" includes--

(o) ollforms of supply of goods or services or both such os sole, tronsfer, borter, officerⁱⁿ

certoin

circum-

stonces.

Scope of

supply.

90

s. 0)

(2)

(3)

(4)

6. (r)

100

functions ossigned to them, sholl hove jurisdiction over the whole of the Stote or where the Stote Government so directs, over ony locol oreo thereof, ond oll other officers sholl, subject to such condilions os moy be specified, hwe jurisdidion over the whole of the Stote or over such locol oreos os the Commissioner moy, by order, specify.

Subject to such conditions ond lim;totions os the Commissioner moy impose, on officer of Stote tox moy exercise the powers ond dischorge the duties conferred or imposed on him under this Act. An officer of Stote tox moy exercise the powers ond

dischorge the duties conferred or imposed under this Act on ony other officer of Stote tox who is subordinote to him.

The Commissioner moy, subject to such conditions ond limitotions os moy be specified in this beholf by him, delegote his powers to ony other officer who is

subordinote^to him.

Notwithstonding o nyth ing contoined in this section, on Appellote Authority sholl not exercise the powers ond

dischorge the duties conferred or imposed on ony other officer of Stote tox.

Wfiout prejudice to fre provisions ofthisAct, the officers oppointed under the Centrol Goods ond Services Tox Act ore outhorised Powers of

officers.

Aufrorisotion

of officers of

centrol tox

os proper

91

List is indicotive 3 o{ 2005

99

CHAPTER.II

ADi/tINISTRATION

3. The Government sholl, by noti- ficotion, oppoint the following closses of officers for^the purposes of fris Act, nomely:-

(o) PrincipolCornmissioner

(b) Chief Commissioner of Sl:cte lox,

(c) Commissioner of Stote tox

(d) Speciol Commissioners of Stote bx,

(e) Additionol Commissioners of Stote tox,

(0 Joint Commissioners of Stote tox,

(S) DePuty Commissioners of Stote tox,

(h) Assistont Commissioners oI Stote tox, ond

(i) ony other closs of officers os it moy deem fit:

Provided thot, the officers oppointed under the Arunochol Prodesh Volue Added Tox Act,2005 sholl be deemed to be the officers oppointed under the provisions of this Act.

4. (l ) The Government moy, in oddition to the officers os moy be notified under section 3,oppoint such persons os it moy think fit to be the officers under thisAct.

(2) The Commissioner sholl hove iurisdiction over the whole of the Stote, the Speciol Commissioner ond on Additionol Commissioner in respect of oll or ony of the Officers

under this

Act

Appointment

d

officers.

92

0^r7) 0r8) 0 re)

0 20)

98

Aolid return" meons o return furnished under subsection (l) of seaion 39 on whicfr sell-ossessed tox hos been poid in full; loucher" meons on instrument where there is on obligotion to occept^it os considerotion or port considerotion for o supply oI goods or services or both ond where the goods or services or both to be supplied or the identities of their potentiol suppliers ore either indicoted on the instrument itself or in reloted documentotion, including the terms ond conditions oJ use of such instrumenq

'lrorks controd" meons o controct for building, construction, fobricotion, completion, erection, instollotion, Iitting out improve- ment, modif icotion, repoir, mointenonce, renovotion,

oherotion or commissioning of ony immovoble property wherein lronsfer of property in goods (whether os goods or in some other form) is involved in the execution of such controct; words ond expressions used ond not delinedⁱⁿ this Ad but defined in the lntegroted Goods ond Services Tox Act, the Centrol Goods ond Services Tox Act, the Union Territory Goods ond Services Tox Ad ond the Goods ond Services Tox (Compensotion to Stotes) Act sholl hove the some meonings os ossigned to them in those Acts.

93

(ll3) (lt4) (11 s) (il5)

97

person, exports oI goods or services or both ond inter-Stote supplies of goods or services or both mode from the 9ole or Union territory by the soid toxoble person but excludes centrol tox, Stote tox, Union territory tox, integroted tox ond cess; 'trsuol ploce of residence"meons-

(o) in cose of on individuol, the ploce where he ordinorily resides;

(b) in other coses, the ploce where the person is

incorporoted or otherwise legolly constituted;

Union tenitory" meons tre tenitory ol-

(o) the Andomon ond Nicobor lslonds;

(b) Lokshodweep;

(c) Dodro ond Noqor Hoveli;

(d) Domon ond Diu;

(e) Chondigorh; ond

(f) other tenitory Explonotion.-For lhe purposes of this Act, eoch of the territories specified in sub-clouses (o) to (f) sholl be considered to be o seporote Union territory

'ljnion territory tox" meons the Union tenito.y goods ond services bx levied under the Union Territory Goods ond Services Tox Act; 'Union Territory Goods ond Services Tox Act" meons the Union Territory Goods ond Services Tox Act, 20 I 7;

94

167

his volid return for the month in which discreponcy is

communicoted sholl be odded to the output tox liobility of the supplier, in such monner os moy be prescribed, in his return forthe month succeeding the month in which the discreponcy is

communicoted.

(6) The omount in respect of ony reduction in outputtox liobility thot is found to be on occount of duplicotion of cloims sholl be odded to the output tox liobility of the supplier in his return for the month in which such duplicotion is communicoted.

(7) The supplier sholl be eligible to reduce, from his output tox liobility, the omount odded under sub-section (5) if the recipient declores the detoils of the credit note in his volid return within the time specified in sub-section⁽⁹⁾ of section 39.

(8) A supplier in whose output tox liobility ony omount hos been odded under sub-section (5) or sub-section (6), sholl be lioble to poy interest ot the rote specified under sub,section (1) of section 50 in respea of the omount so odded from the dote of such cloim for reduction in the output tox liobilily till the corresponding odditions ore mode under the soid sub-sections.

(9) Where ony redudion in ouFuttox liobility is occepted under sub- seoion (7), ttre interest poid under sub-seaion⁽⁸⁾ sholl be refunded lo the supplier by crediting^the

168

omount in the corresponding heod of his electronic cosh ledger in such monner os moy be

prescribed:

Provided thot the omount^of interest to be credited in ony cose sholl not exceed the omount of interest poid by the recipient.

(10) The omount reduced from output tox liobility in controvention of the provisions of sub-section⁽⁷⁾ sholl be odded to the output tox liobility of the supplier in his return for the month in which such controvention tokes ploce ond such supplier sholl be lioble to poy interest on the omount so odded ot the rote specified in sub-section (3) of section 50.

zl4. (l ) Every registered person, otherthon on lnput Service Distributor, o person poying tox under section 5l or section 52. o cosuol toxoble person ond o non-resident toxoble person, sholl furnish on onnuol relurn for every finonciol yeor electronicolly in such form ond monner os moy be prescribed on

or before the thirty-first doy of December following the end of

such finonciolyeor.

(2) Every registered person who is required to get his occounts oudited in occordonce with the provisions of sub-section (5) of section 35 sholl fu rn ish, electronicolly, the onnuol return under sub-section (l ) olong with o copy of the oudited onnuol occounts ond o reconciliotion stotement, reconciling the volue Annuol

return.

45.

46.

47. (1)

(2)

t69 of supplies declored in the return furnished for tre linonciolyeor with the oudited onnuol fino ncio I stotement, ond such other porticulors os moy be prescribed. Every registered person who is required to furnish o return under sub-section (l ) ofsection 39 ond whose registrotion hos been concelled sholl furnish o finol return within three months of the dote of concellotion or dote^of order of concellotion, whichever is Ioter, in such form ond monner os moy be prescribed.

Where o registered person foils to furnish o return under section 39 or section 44 or section 45, o notice sholl be issued requiring him to furnish such return within fifteen doys in such form ond monner os moy be prescribed. Any registered person who foils to Iurnish the detoils ol outword^or inword supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due dote sholl poy o lote fee o{ one hundred rupees for every doy during which such foilure continues subject to o moximum omount of five

thousond rupees.

Any registered person who foils to furnish the return required under section 44 by the due dote sholl be lioble to poy o lote fee of one hundred rupees for every doy dur- ing which such foilure continues subject to o moximum of on omount colculoted ot o quorter per cent. of his turnover in the Stote.

Finol return

Notice to

refurn

defoulters

Levy of lote

fee.

97

48. (r)

(2)

(3)

170

The monner of opprovol of goods ond services tox proctitioners, 6eir eligibility conditions, duties ond obligotions, monner of removol ond other conditions relevont for their functioning sholl be such os mqy be prescribed.

A registered person moy outhorise on opproved goods ond services tox proctitioner to furnish the detoils of outword supplies under section 37, the detoils of inword supplies under section 38 ond the return under section 39 or section 44 or section 45in such monner os moy be prescribed.

Notwithstonding o nyth ing contoined in sub-section (2), the responsibility for correctness of ony porticulors furnished in the relurn or other detoils filed by the goods ond services tox

proctitioners sholl continue to rest with the registered person on whose beholf such return ond detoils ore furnished.

CHAPTER.X

PAYMENT OF TAX

Every deposit mode towords tox, interest, penolty, fee or ony other omount by o person by internet bonking or by using credit or debit cords or Notionol Electronic Fund Tronsfer or Reol Time Gross Settlement or by such o*rer mode ond subject to such conditions ond restrictions os moy be prescribed, sholl be credited to the electronic cosh ledger of such person to be mointoined in such monner os moy be prescribed. Goods ond

services

tox proctitio-

ners.

Poyment of

tox, inter

est, penolty

ond other

omounts.

4e. (r)

98

17t

(2) The input tox credit os self- ossessed in the return of o registered person sholl be credited to his electronic credlt ledger, in occordonce with sedion 4l; to be mointoined in such monner os moy be prescribed..

(3) The omount ovoiloble in the electronic cosh ledger moy be used for moking ony poyment towords tox, interest, penolty, fees or ony other omount poyoble under the provisions of thisAct or the rules mode thereunder in such monner ond subject to such conditions ond within such time os moy be prescribed.

(4) The omount ovoiloble in the electronic credit ledger moy be used for moking ony poyment towords output tox under thisAct or under fre lntegroted Goods ond Services Tox Act in such monner ond subject to such conditions ond within such time os moy be prescribed.

(5) The omount of input tox credit ovoiloble in the eledronic credit ledger of the registered person on occount of --

(o) integroted tox sholl first be utilised towords poyment of integroted tox ond the

omount remoining, if ony, moy be utilised towords the poyment of centrol tox ond Stote tox, or os the cose moy be, Union territorytox, in thot order;

99

t72

(b) the centroltox shollfirst be utilised towords poyment of centrol tox ond the omount remoining, if ony, moy be utilised towords the poyment of integroted tox;

(c) the Stote tox sholl first be utilised towords poyment of Stote tox ond the omount remoining, if ony, moy^be utilised towords the poyment of integroted tox;

(d) the Union territory tox sholl first be utilised towords poyment of Union territory tox ond the omount

remoining, if ony, moy^be utilised towords the poyment ol integroted tox;

(e) the centrol tox sholl not be utilised towords poyment of Stote tox or Union territory tox; ond

(f) the Stote tox or Union territory tox sholl not be utilised towords poyment of centrol tox.

(6) The bolonce in the electronic cosh ledger or electronic credit ledger ofter poyment of tox, interest, penolty, fee or ony other omount poyoble under thisAct or the rules mode frereunder moy be refunded in occordonce with the provisions of section 54.

(7) All liobilities of o toxoble person under this Act sholl be recorded ond mointoined in on electronic liobility register in such monner os moy be prescribed.

100

173

(8) Every toxoble person sholl dischorge his tox ond other dues under this Act or the rules mode thereunder in the following order, nomely:-

(o) self-ossessed tox, ond other dues reloted to returns ot previous tox periods;

(b) self-ossessed tox, ond other dues reloted to the return of the current tox period;

(c) ony other omount poyoble under this Act or the rules mode thereunder including the demond determined under section 73 or section

74.

(9) Every person who hos poid the tox on goods or services or both under this Ad sholl, unless the controry is proved by him, be deemed to hove possed on the full incidence of such tox to the recipient ol such goods or services or both.

Explonotbn.-For the purposes olfris sec- tion,

(o) the dote of credit to the occount of the Government in the

outhorised bonk sholl be deemed to be the dote of deposit in the electronic cosh ledger;

(b) the expression,-

(i) 'tox dues"meons the tox poy- oble under thisAct ond does not include interest, fee ond penolty; ond

(ii) 'bther dues"meons interest, penolty, fee or ony other omount poyoble under this Act or the rules mode there- under.

t74 Every person who^is lioble to poy tox in occordonce with the provisions of this Act or the rules mode thereunder, but foils to poy the tox or ony port thereof to the Government within the period prescribed, sholl for the period for which the tox or ony port thereof remoins unpoid, poy, on his own, interest ot such rote, not exceeding eighteen^per cent., os moy be notified by the Government on the recommen- dotions ofthe Council. The interest under sutssection (l ) sholl be colculoted, in such monner os moy be prescribed, from the doy succeeding the doy on which such tox wos due to be poid.

A toxoble person who mokes on undue or excess cloim of input tox credit under sub-section (10) of section 42 or undue or excess reduction in output tox liobility under sub-section (10) of section 43, sholl poy interest on such undue or excess cloim or on such undue or excess reduction, os the cose moy be, ot such rote not exceeding twenty-{our^per cent., os moy be notified by the Government on the recommen- ,dotions of the Council. Notwithstonding onything to the controry contoined in thisAd, the Government moy mondote,- o deportment or estoblishment of the Centrol Government or Stote Government or

locol outhority; or

lnterest on

deloyed

poyment of

tox.

Tox deduc-

tion ot

source.

s0. (l )

(2)

(3)

sr.⁽¹⁾ (o)

(b)

102

175

(c) Governmentologencies;or

(d) such persons or cotegory of persons os moy be notified bythe Government on the recommen- dotions of the Council, (hereofter in this section referred to os 'the dedudor'), to deduct tox ot the rote of one per cent. Irom the poyment mode or credited to the supplier (hereofter in this section referred to os the deductee') of toxoble goods or services or both, where the totol volue of such supply, under o controct, exceeds two lokh ond fifty thousond rupees:

Provided thot no deduction sholl be mode ifthe locotion ofthe supplier ond the ploce oi supply is in o Stote or Union territory which is different from the Stote or, os the cose moy be, Union territory of registrotion of the recipient.

E xplo noti o n.-F or the purpose of deduction of tox specified obove, the volue of supply sholl be token os the omount excluding the centroltox, Stote tox, integroted tox ond cess indicoted in the invoice.

(2) The omount deducted os tox under this section sholl be^poid to the Government by the deductor within ten doys ofter the end of the month in which such deduction is mode, in such monner os moy be prescribed.

(3) The deductor sholl {urnish to the deductee o certificote mentioning therein the controct volue, rote of deduction, omount deducted, omount poid to the Government ond such other porticulors in such monner os moy be prescribed.

176

(4) ll ony deductor foils to furnish to the deductee the certificote, ofter deducting the tox ot source, within five doys of crediting the omount so deducted to the Government, the deductor sholl poy, by woy of o lote fee, o sum of one hundred rupees per doy from the doy ofter the expiry of such five doy period until the foilure is rectified, subject to o moximum omount of^five

thousond rupees.

(5) The deductee sholl cloim credit, in his electronic cosh ledger, ofthe tox deducted ond reflected in the return of the deductor furnished under sub-section (3) of section 39, in such monner os moy be prescribed.

(6) lf ony deductor foils to poy to the Government the omount deduded os tox under sub-section (l ), he sholl poy interest in occordonce with the provisions of sub-section (1 ) of section 50, in oddition to the omount of tox deducted.

(7) The determinotion of the omount in defoult under this section sholl be mode in the monner specified in section 73 or sectionT4.

(8) The refund to the deductor or the deductee orising on occount of excess or erroneous deduction sholl be deolt with in occordonce with the provisions of section 54:

Provided thot no refund to the deductor sholl be gronted, if the omount deducted hos been credited to the electronic cosh ledger of the deductee.

t77

52. (l) Notwithstonding onything to the controry contoined in this Act, every e lectron ic commerce operotor (hereqfter in this section referred to os the 'bperotor'), not being on ogent, sholl collect on omount colculoted ot such rote not exceeding one per cent., os moy be notilied by the

Government on the recommen- dotions of the Council, of the net volue of toxoble supplies mode through it by other suppliers where the considerotion with respect to such supplies is to be collected by the operotor.

Exp lonotion.-F or the purposes ol this sub-section, the expression

"net volue of tqxoble supplies" sholl meon the oggregote volue oftoxoble supplies ofgoods or services or both, other thon services notified under sub-section (5) of section 9, mode during ony month by oll registered persons through the operotor reduced by the oggregote volue of toxoble supplies returned to the suppliers during the soid month.

(2) The power to collect the omount specified in sub-section (l ) sholl be without prejudice to ony other mode of recovery from the oPerotor.

(3) The omount collected under sub- section (l) sholl be poid to the Government by the operotor within ten doys ofter the end of the month in which such collection is mode, in such monner os moy be

prescribed.

Collection of

tox ot

source.

105

t78

(4) Every operotor who collects the omount specified in sub-section

(l) sholl furnish o stotement, electronicolly, contoining the detoils of outrrord supplies ol goods or services or both effected through it, including the supplies of goods or services or both returned through it, ond the omount collected under^sub- sedion⁽¹⁾ during o month, in such form ond monner os moy be prescribed, within ten doys ofter the end of such month.

(5) Every operotor who collects the omount specified in sub-section (l) sholl furnish on onnuol stotement, electro n ico lly,

contoining the detoils o{ outword

supplies of goods or services or

both effeded through it, including

the supplies ol goods or services

or both returned through it, ond

the omount collected under the

so id sub-section during the

finonciol yeol in such form ond

monner os moy be prescribed,

before the thirty first doy of

December following the end of

such finonciolyeor.

(6) ll ony operotor ofter furnishing o stotement under sub-section⁽⁴⁾ discovers ony omission or incorred porticulors therein, other thon os o result of scrutiny, oudit, inspection or enforcement octivity by the tox outhorities, he sholl rectify such omission or incorrect porticulors in the stotement to be lurnished for the month during which such omission or incorrect porticulors ore noticed, subject to poyment of interest, os specified in sub-seaion⁽ l ) of section 50:

106

179

Provided thot no such rectificotion of ony omission or incorrect porticulors sholl be ollowed ofter the due dote {or furnishing of stotement for the month of September following the end of the finonciol yeor or the octuoldote offurnishing of the relevont onnuol stotement, whichever is eorlier.

(7) The supplier who hos supplied the goods or services or both through the operotor sholl cloim credit, in his electronic cosh ledger, of the omount collected ond refleded in the stotement oI the operotor furnished under sub-seaion (4), in such monner os moy be

prescribed.

(8) The detoils of supplies lurnished by every operotor under^sub- section (4) sholl be motched with the corresponding detoils^of outword supplies furnished by the concerned supplier registered underthisAct in such monner ond within such time os moy be prescribed.

(9) Where the detoils of outword supplies fumished bythe operotor under sub-section (4) do not motch with the corresponding detoils furnished by the supplier under section 37, the discreponcy sholl be communicoted to both persons in such monner ond within such time os moy be prescribed.

(10) The omount in respect of which ony discreponcy is communicoted under sub-section⁽⁹⁾ ond whkh is not rectified by the supplierⁱⁿ his volid return or the operotor in

180

his stotement for the month in which discreponcy is

communicoted, sholl be odded to the output tox liobility of the soid supplier, where the volue of outword supplies furnished bythe operotor is more thon the volue of outword suppiies furnished bythe supplier, in his return for the month succeeding the month in which the discreponcy is communicoted in such monner os moy be

prescribed.

(l I ) The concerned supplier, in whose outputtox liobility ony omount hos been odded under sub-section ( 10), sholl poy the tox poyoble in respect of such supply olong with interest, ot the rote specilied under sub-section (l ) of section 50 on the omount so odded from the dote such tox wos due till the dote ol its poyment.

(12) Any outhority not below the ronk of Deputy Commissioner moy serve o notice, either before or during the course of ony

proceedings under this Act, requiring the operotor to furnish such detoils reloting to-

(o) supplies of goods or services or both effected through such operotor during ony period; or

(b) stock of goods held by the suppliers moking supplies through such operotor in the godowns or worehouses, by whotever nome co lled, monoged by such operotor ond declored os odditionol ploces of business by such suppliers, os moy be

specified in the notice.

l8l ('13) Every operotor on whom o notice hos been served under sub- section (12) sholl furnish the required informotion within fifteen working doys o{ the dote of service of such notice.

(14) Any person who foils to furnish the informotion required by the notice served under sub-section (l2) sholl, without prejudice to ony oction thot moy be token under section 122, be lioble to o penolty which moy extend to twenty-five thousond rupees. Explonotion.- Forthe purposes of this section, the expression 'toncerned supplier"sholl meon the supplier of goods or services or both moking supplies through the operotor.

53. On utilisotion of input tox credit ovoiled under this Act for poyment of iox dues under the lntegroted Goods ond

Services Tox Act in occordonce with the provisions of sub-section (5) o{ section 49. os reflected in the volid return furnished under sub-section (l ) of section 39. the omount collected os Stote tox sholl stond reduced by on omount equol to such credit so utilised ond the Stote Government sholltronsfer on omount equol to the omount so reduced from the Stote tox occount to the integroted tox occount in such monner ond within such time os moy be prescribed.

Tronsfer of

input tox

credit.

109

182

CHAPTER^- XI

REFUNDS

54. (l) Any person cloiming refund ofony tox ond interest, if ony, poid on such tox or ony other omount poid by him, moy moke on opplicotion before the expiry of two yeors from the relevont dote in such form ond monner os moy be prescribed:

Provided thot o registered

person, cloiming refund of ony bolonce in the electronic cosh ledger in occordonce with the provisions of sub-section (6) of section 49, moy cloim such refund in the return furnished under sedion 39 in such monner os moy be prescribed.

(2) A speciolized ogency of the United Notions Orgonizotion or ony Multiloterol Finonciol lnstitution ond Orgonizotion notitied under the United Notions (Privileges ond lmmunities) Act, 1947, Consulote or Embossy of foreign counties or ony other person or closs of persons, os notified under sedion 55, entitled to o refund of tox poid by it on inword supplies of goods or services or both, moy moke on opplicotion for such refund, in such form ond monner os moy be prescribed, before the expiry of six months from the lost doy of the quorter in which such supply wos received.

(3) Subject to the provisions oI sub- section (10), o registered person moy cloim refund of ony unutilised input tox credit ot the end of ony tox period:

Refund of

tox.

46 oI 1947

r83 Provided thot no refund of unutilised input tox credit sholl be ollowed in coses other thon-

(i) zero-roted supplies mode without poyment o, tox;

(ii) where the credit hos occumuloted on occount of rote of tox on inputs being higher thon the rote of tox on output supplies (other thon nil roted or fully exempt supplies), except supplies of goods or services or both os moy be notified by the Government on the

recommendotions oI the Council:

Provided further ttrot no refund of unutilised input tox credit sholl be ollowed in coses where the goods exported out of lndio ore subjected to export duty:

Provided olso thot no refund of input tox credit sholl be ollowed, if the supplier of goods or services or both cloims refund of the integroted tox poid on such supplies.

(4) The opplicotion sholl be occomponied by-

(o) such documentory evidence os moy be prescribed to estoblish hoto refund is due to the opplicont; ond

(b) such documentory or other evidence (including the documents referred to in section 33) os the opplicont moy furnish to estoblish thot the omount of tox ond interest, if ony, poid on such tox or ony otreromount poid in relotion to which such

111

184

refund is cloimed^wos collected from, or poid by, him ond the incidence ol such tox ond interest hod not been possed on to ony other person:

Provided thot where the omount cloimed os relund is less thon^two lokh rupees, it sholl not be necessory for the opplicont to furnish^ony documentory ond other eviciences but he moy file o declorotion, bosed on the documentory or other evidences ovoiloble with him, certifying thotthe incidence of such tox ond interest hod not been possed on to ony other person.

(5) lf, on receipt of ony such opplicotion, the proper officer is sotisfied thot the whole or port of the omount cloimed os relund is refundoble, he moy moke on order occordingly ond the omount so determined sholl be credited to the Fund refened to in section 57.

(6) Notwithsto nding o nyth ing contoined in sub-section (5), the proper officer moy, in the cose of ony cloim lor refund on occount of zeroroted supply of goods or services or both mode by registered persons, other thon such cotegory of registered persons os moy be notified by the Government on the recommen- dotions of the Council, refund on o provisionol bosis, ninety^per cent. of the totol omount so cloimed, excluding the omount of input tox credit provisionolly occepted, in such monner ond

185

subiect to such cond ition s, limitotions ond sofeguords os moy be prescribed ond thereofter moke on order under sub-section (5)for finolsettlement of the refund cloim ofter due verificotion of documents lurnished by the opplicont.

(7) The proper officer sholl issue the order under sub-section⁽⁵⁾ within sixty doys from the dote of receipt of opplicotion complete in oll respects.

(8) Notwithstonding o nyth in 9 contoined in subsection (5), the refundoble omount sholl, insteod of being credited to the Fund, be poid to the opplicont, if such omount is relotoble to -

(o) refund of tox poid on zero- roted supplies of goods or services or both or on inputs or input services used in moking such zero-roted supplies;

(b) refund of unutilised inputtox credit under sub-section^(3);

(c) refund oitox poid on o supply which is not provided, either wholly or portiolly, ond for which invoice hos not been issued, or where o refund voucher hos been issued;

(d) refund oftox in pursuonce of section 77;

(e) the tox ond interest, if ony, or ony other omount poid by the opplicont, if he hod not possed on the incidence of such tox ond interest to ony other person; or

186

(f) the tox or interest borne by such other closs^of

oppliconts os the Govern- ment moy, on the

recommendotions of the

Council, by notificotion, specify.

(9) Notwithstonding onything to the controry contoined in ony judgment, decree, order or direction of the Appellote Tribunol or ony court or in ony other provisions of this Act or the rules mode thereunder or in ony other lowJor the time being in force, no refund sholl be mode except in occordonce with the provisions of sub-section^(8).

(10) Where ony refund is due under sub-section (3) to o registered person who hos defoulted in furnishing ony return or who^is required to poy ony tox, interest or penolty, which hos not been stoyed by ony court, Tribunol or Appellote Authority by the specified dote, the proper officer moy-

(o) withhold poyment of refund due until the soid person hos furnished the return or poid the tox, interest or penolty, os the cose moy be;

(b) deduafrom the refund due, ony tox, interest, penolty, fee or ony other omount which the toxoble person is lioble to poy but which remoins unpoid under this Act or under the existing low.

187

Explonolon.-F or the purposes of this sub-section, the expression

"specified dote" sholl meon the lost dote ior filing on oppeol under this Act.

(1 1) Where on order giving rise to o refund is the subject motter oI on oppeol or further proceedings or where ony other proceedings un- der this Act is pending ond the Commissioner is of the opinion thot gront of such refund is likely to odversely offect the revenue in the soid oppeol or other proceed- ings on occount of molfeqsonce or froud committed, he moy, ofter giving the toxoble person on op- portunity of being heord, withhold the refund till such time os he moy determine.

(12) Where o refund is withheld un- der sub-section (l I ), the toxoble person sholl, notwithstonding ony- thing contoined in section 56, be entitled to interest ot such rote not exceeding six^per cent. os moy be notified on the recommen- dotions of the Council, if os o re- sult of the oppeol or further pro- ceedings he becomes entitled to refund.

(13) Notwithstonding onything to the controry contoined in this section, the omountofodvonce tox depos- ited by o cosuol toxoble person or o non-resident toxoble person under sub-section⁽²⁾ of section 27, sholl not be refunded unless such person hos, in respect ofthe entire period for which the certi{i- cote of registrotion gronted to him hod remoined in force, furnished ollthe returns required under sec- tion 39.

188

(14) Notwithstonding onything contoined in this section, no refund under sub-section (5) or sub-section (6) sholl be poid to on opplicont, if the omountis less thon one thousond rupees. Explonotion.-^For the purposes^of this section,-

(1) 'tefund"includes refund oftox poid on zeroroted supplies ofgoods or services or both or on inputs^or input services used in moking such zero-roted supplies, or refund of tox on the supply of qoods regorded os deemed exports, or refund of unutilised input tox credit os provided under sub-section^(3).

(2) 'televont dote"meons -

(o) in the cose of goods exported out of lndio where o refund of tox poid is ovoilobleⁱⁿ respect of goods them- selves or, os the cose moy be, the inputs or in put services used in suc h goods,-

(i) ifthe goods ore exported by seo or oir, the dote on which the ship or the oircroft in which such goods ore looded,

leoves lndio; or

(ii) if the goods ore exported by lond, the dote on which such goods poss the frontier; d

189

(iii) if the goods ore exported by post, the dote of

despotch of goods by

the Post Off ice

concerned to o ploce

outside lndio;

(b) in tfre cose ofsupply of goods regorded os deemed exports where o refund oftox poid is ovoiloble in respect of the goods, the dote on which the return reloting to such

deemed exports is furnished;

(c) in the cose of services exported out oi lndio where o refund of^tox poid is ovoiloble in respect of services themselves or, os the cose moy be, the inputs or input services used in such services, the dote of--

(i) receipt of poyment in convertible foreig n exchonge, where^the supply of services hod been completed prior to the receipt of s uch poyment; or

(ii) issue of invoice, where poyment for the services hod been receivedⁱⁿ

odvonce prior to the dote ol issue of the invoice;

(d) in cose where the tox becomes reJundoble os o consequence of iudgment, decree, order or direction of the Appellote Authority,

46 ol 1947 r90

Appellote Tribunol or ony court, the dote of communi- cotion of such judgment, decree, order or direction;

(e) in the cose ol refund oI unutilised input tox credit under sub-section (3). the end of the finonciol yeor in which such cloim for refund orises;

(f) in the cose where tox is poid provisionolly under this Act or the rules mode

thereunder, the dote of odjustment of tox ofter the finol ossessment thereof;

(g) in the cose oi o person, other thon the supplier, the dote of receipt of goods or services or both by such person; ond

(h) in ony other cose, the dote of poyment of tox.

55. The Government moy, on the recommendotions of the Council, by notificotion, specify ony speciolized ogency of the United Notions Orgonizotion or ony Multiloterol Finonciol lnstitution ond Orgonizotion notified under the United Notions (Privileges ond lmmunities) Act, 1947, Consulote or Embossy of foreign countries ond onyother person or closs of persons os moy be specified in this beholf, who sholl, subject to such conditions ond restrictions os moy be prescribed, be entitled to cloim o relund oI toxes poid on the notified supplies of goods or services or both received by them.

Refund in

certoin

coses.

118

l9l 56.^lf ony tox ordered to be refunded under sub-section (5) of section 54 to ony opplicont is not refunded within sixty doys lrom the dote of receipt of opplicotion under sub-section (l ) of thot section, interest ot such rote not exceeding six per cent. os moy be specified in the notificotion issued by the Government on the recommen- dotions ofthe Council sholl be poyoble in respect of such refund from the dote immediotely ofter the expiry of sixty doys from the dote of receipt of opplicotion under the soid sub-section till the dote of refund of such tox:

Provided thot where ony cloim of refund orises from on order possed by on odjudicoting outhority or Appellote Authority orAppellote Tribunol or court which hos ottoined finolity ond the some is not re{unded within sixty doys from the dote of receipt of opplicotion filed consequent to such order, inter- est ot such rote not exceeding nine per cent. os moy be notified by the Government on the recommendotions of the Council sholl be poyoble in re- spect ol such refund from the dqte immediotely ofter the expiry of sixty doys from the dote of receipt of oppli- cotion tillthe dote of refund. Explonotion.--For the purposes of this section, where ony order of re- fund is mode by on Appellote Author- ity, Appellote Tribunol or ony court ogoinst on order of the proper officer under sub-sedion (5) of sedion 54, the order possed by theAppellote Author- ity, Appellote Tribunol or by the court sholl be deemed to be on order possed under the soid sub-section (5). lnterest on

deloyed

refunds.

119

192

57. The Government sholl constitute o Fund, to be colled the Consumer Welfore Fund ond there sholl be credited to the Fund,-

(o) the omount referred to in sub- section (5) of section 54;

(b) ony income from investment of the omount credited to the Fund; ond

(c) such other monies received by it, in such monner os moy be prescribed.

58. (l) All sums credited to the Fund sholl be utilised by the

Govemment^for the welfore of tp consumers in such monner os moy be prescribed.

(2) The Governmentor the outhority specified by it sholl mointoin proper ond seporote occountond other relevont records in relotion to the Fund ond prepore on onnuol stotement of occountsⁱⁿ such form os moy be prescribed in con su ltotio n with the Comptroller ond Auditor Generol of lndio.

CHAPTER-^XII

ASSESSMENT

59. Every registered person sholl self- ossess the toxes poyoble under this Act ond furnish o return for eoch tox period os specified under section 39.

60. (l ) Subiect to the provisions of sub- section (2), where the toxoble person is unoble to determine the volue of goods or services or both or determine the rote oftox opplicoble thereto, he moy

Consumer

Welfore

Fund.

Utilisotion

of Fund.

Seff-

ossessment

Provisionol

ossess-

ment.

l9l requestthe proper officer in writing giving reosons for poyment of tox on o provisionol bosis ond the proper officer sholl poss on order, witfrin o period not loterthon ninety doys from the dote of receipt of such request, ollowing poyment ol tox on provisionol bosis ot such rote or on such volue os moy be specified by him.

(2) The poyment of tox on provisionol bosis moy be ollowed, if the toxoble person executes o bond in such form os moy be

prescribed, ond with such surety or security os the proper officer moy deem fit, binding the toxoble person for poyment of the

difference between the omount of tox os moy be finolly ossessed ond the omount of tox

provisionolly ossessed.

(3) The proper officer sholl, within o period not exceeding six months from the dote of the

communicotion of tre order issued under sub-section^(l ), poss the finolossessment order ofter toking into occount such informotion os moy be required for linolizing the ossessment:

Provided thot the period specified in this sub-section moy, on sufficient couse being shown ond for reosons to be recorded in writing, be extended by the Joint Commissioner or Additionol Commissioner for o furtlrer period not exceeding six months ond by the Commissioner for such further period not exceeding four yeors.

121

(4)

(s) 6r. 0)

(2)

't94 The registered person sholl^be lioble to poy interest on ony tox poyoble on the supply of goods or services or both under provisionol ossessment but not poid on the due dote specified under sub-section⁽⁷⁾ of section 39 or the rules mode thereunder, ot the rote specified under sub- section (l ) of section 50, from the first doy ofter the due dote of poyment of tox in respect of the soid supply of goods or services or both till the dote of octuol poyment, whether such omount is poid before or ofter the issuonce of order for {inol ossessment. Where the registered person is entitled to o re{und consequent to the order of finol ossessment under sub-section (3), subiect to the provisions of sub-section⁽⁸⁾ of section 54, interest sholl be poid on such refund os provided in section 56.

The proper officer moy scrutinize the return ond reloted porticulors furnished by the registered person to verify the correctness of the return ond inJorm him of the discreponcies noticed, if ony, in such monner os moy be

prescribed ond seek his

explonqtion thereto.

ln cose the explonotion is found occeptoble, the registered person sholl be informed occordingly ond no further oction sholl be token in this regord.

Scrutiny of

returns.

(3)

62. (1)

\2)

195

ln cose no sotidoctory explonotion isfurnished within o period of thirty doys of being informed by the proper officer or such further period os moy be permitted by him or where the registered person, ofter occepting the discreponcies, foils to toke the conective meosure in his return for the month in which the discreponcy is occepted, the proper off icer moy initiote oppropriote oaion including those under sedion 65or section⁶⁶or section 67, or proceed to determine the tox ond other dues under sedion 73 or section 74. Notwithstonding onything to the controry contoined in section 73 or section 74, where o registered person foils to iurnish the return under section 39 or section 45, even ofter the service of o notice under seaion z16, tre proper officer moy proceed to ossess the^tox liobility of the soid person to the best of his judgement toking into occount oll the relevont moteriol which is ovoiloble orwhich he hos gothered ond issue on

ossessment order within o period of five yeors from the^dote specified under section 44 for Iurnishing of the onnuol return for the finonciol yeor to which the tox not poid relotes.

Where the registered person furnishes o volid return wihin hirty doys of the service of the ossessment order under sub- section (l ), the soid ossessment order sholl be deemed to hove been withdrown but tre liobility for Assessment

of nonfilers

of returns.

196

poyment of interest under sub- section (l) of section 50 or lor poyment of lote fee under section 47 sholl continue.

63. Notwithstonding onything to the controry contoined in section 73 or section 74,where o toxoble person foils to obtoin registrotion even drough lioble to do so or whose registrotion hos been concelled under sub-section (2) of section 29 but who wos lioble to^poy tox, the proper of{icer moy proceed to ossess the tox liobility ol such toxoble person to the best of his judgement for the relevont tox periods ond issue on ossessment order within o period offive yeors from the dote specified under section 44 for furnishing of the onnuol return tor the finonciol yeor to which the tox not poid relotes:

Provided thot no such ossessment order sholl be possed withoutgiving the person on opportunity of being heord.

64. (l) The proper officer moy, on ony evidence showing o tox liobility of o person coming to his notice, with the previous permission of Additionol Commissioner or J oint Commissioner, proceed to ossess the tox liobility of such person to protect the interestof revenue ond issue on ossessment order, if he hos sufficient grounds to believe thot ony deloy in doing so moy odversely offect the interest of revenue:

Provided thot where the toxoble person to whom the liobility pertoins is not oscertoinoble ond such liobility pertoins to supply of goods, the person in chorge of such goods sholl be Assessment

of unregister-

ed persons.

Summory

ossessment

in certoin

speciol

coses.

t97 deemed to be the toxoble person lioble to be ossessed ond lioble to^poy tox ond ony other omount due under this section.

(2) On on opplicotion mode by the toxoble person within thirty doys from the dote of receipt of order possed under sub-section (l ) or on his own motion, if theAdditionol Commissioner or J oint

Commissioner considers thot such order is erroneous, he moy withdrow such order ond follow the procedure loid down in section 73 or section 74.

CHAPTER XIII

AUDIT

65. ('l) The Commissioner or ony officer outhorised by him, by woy of o generol or o specific order, moy undertoke oudit of ony registered person for such period, ot such frequency ond in such monneros moy be prescribed.

(2) The officers refened to in sub- section (l ) moy conduct oudit ot the ploce ol business ol the registered person or in their office.

(3) The registered person sholl be informed by woy of o notice not less thon fifteen working doys prior to the conduct of oudit in such monner os moy be

prescribed.

(4) The oudit under sub-section (1) sholl be completed within o period of three months from the dote of commencement of the oudit:

Audit by tox

outhorities

125

198

Provided thot where the Commissioner is sotisfied thot oudit in respect of such registered person connot be completed within three months, he moy, for the reosons to be recorded in writing, extend the period by o further period not exceeding six months.

Explonotion.-For the purposes of this sub-section, the expression'tomm- encementof oudit"sholl meon the dote on which the records ond other documents, colled for by the tox outhorities, ore mode ovoiloble by the registered person or the octuol institution of oudit ot the ploce of business, whichever is loter.

(5) During the course of oudit, the outhorised officer moy require the registered person,

(i) to offord him the necessory focility to verify the books of occount or other documents os he moy require;

(ii) to furnish such informotion os he moy require ond

render ossistonce for timely completion of the oudit.

(6) On conclusion of oudit, the proper officer sholl, within thirty doys, inform the registered person, whose records ore oudited, obout the findings, his rights ond obligotions ond the reosons for such findings.

(7) Where he oudit conducted under sub-sedion^(l ) results in detec- tion of tox not poid or short poid or erroneously refunded, or input tox credit wrongly ovoiled or utilised, the proper officer moy initiote odion underseclion 73 or section 74.

199

66. (l ) lf ot ony stoge of scrutiny, inquiry, investigotion or ony other

proceedings before him, ony

officer not below the ronk of

Assistont Commissioner, hoving

regord to the noture ond

complexity of the cose qnd the

interest of revenue, is of the

opinion thot the volue hos not

been correctly declsred or the

credit ovoiled is not within the normol limits, he moy, with the

prior opprovol oi the

Commissioner, direct such

registered person by o communi-

cotion in writing to get his records including books of occou nt

exomined ond oudited by o

chortered occountont or o cost

occountont os moy be nominoted

by the Commissioner.

(2) The chortered occountont or cost occountont so nominoted sholl, within the period of ninety doys, submit o report ol such oudit duly signed ond certified by him to the soid Assisto nt Commissioner mentioning therein such other porticulors os moy be specified:

Provided thot the Assistont Commissioner moy, on on opplicotion mode to him in this beholf by the registered person or the chortered occountont or cost occountont or for ony moteriol ond sufficient reoson, extend the soid period by o further period of ninety doys.

(3) The provisions of sub-sedion (l ) sholl hove effect notwithstonding thot the occounts of the registered Speciol

oudit.

200

person hove been oudited under ony other provisions of this Act or ony other low for the time beingⁱⁿ force.

(4) The registered person sholl be given on opportunityof being heord in respect ofony moteriolgothered on the bosis of specioloudit under sub-section (l ) which is proposed to be used in ony proceedings ogoinst him under this Act or the rules mode thereunder.

(5) The expenses of the exominotion ond oudit of records under sub- section^{( 1} ), including the remunerotaon of such chortered occountont or cost occountont, sholl be determined ond poid by the Commissioner ond such determinotion sholl be finol.

(6) Where the speciol oudit conducted under sub-section (l) results in detection ol tox not poid or short poid or erroneously refunded, or input tox credit wrongly ovoiled or utilised, the proper officer moy initiote oction under section 73 or sectionT4. CHAPTER^- XIV

INSPECTION, SEARCH, SEIZURE AND

ARREST

67.⁽ l ) Where the proper officer, not below the ronk of Joint Commissioner, hos reosons to believe thot--

(o) o toxoble person hos suppressed ony tronsoction reloting to supply of goods or services or both or the Power of

inspection,

seorch ond

seizure.

201

stock o, goods in hond, or hos cloimed input tox credit in excess of his entitlement under this Act or hos indulged in controvention ol ony of the provisions ol this Act or the rules mode tpreunder to evode tox under this Act; or

(b) ony person engoged in the business of tro nsporting goods or on owner or

operotor ofo worehouse or o godown or ony other ploce is keeping goods which hove escoped poyment of tox or hos kept his occounts or goods in such o monner os is likely to couse evosion oI tox poyoble under this Act, he moy outhorise in writing ony other officer of Stote tox to inspect ony ploces of business of the toxoble person or the pe rsons engoged in the business of tronsporting goods or the owner or the operotor of worehouse or godown orony other ploce.

(2) Where the proper officer, not below the ronk of Joint Commissioner, either pursuont to on inspection corried out under sub-section ('l) or otherwise, hos reosons to believe thot ony goods lioble to confiscotion or ony documents or books or things, which in his opinion sholl be useful for or relevont to ony proceedings under this Act, ore secreted in ony

202

ploce, he moy outhorise in writing ony other officer of Stote tox to seorch ond seize or moy himself seorch ond seize such goods, documents or books or things:

Provided thot where it is not procticoble to seize ony such goods, the proper officer, or ony officer outhorised by him, moy serve on the owner or the custodion ol the goods on order thot he sholl not remove, port with, or otherwise deolwith the goods except with the previous permission of such officer:

Provided furtherthot the documents or books or things so seized sholl be retoined by such oflicer onlylor so long os moy be necessory for their exominotion ond for ony inquiry or proceedings under thisAct.

(3) The documents, books or things refened to in sub-seaion⁽²⁾ or ony other documents, books or things produced by o toxoble person or ony other person, which hove not been relied upon for the issue of notice under this Act or the rules mode thereunder, sholl be returned to such person within o period not exceeding thirty doys of the issue of the soid notice.

(4) The oflicer outhorised under sub- section (2) sholl hove the power to seol or breok open the door of ony premises orto breok open ony olmiroh, eleckonic devices, box, receptocle in which ony goods, occounts, registers or documents ofthe person ore suspected to be conceoled, where occess to such premises, olmiroh, electronic devices, box or receptocle is denied.

203

(5) The person from whose custody ony documents ore seized under sub-section⁽²⁾ sholl be entitled to moke copies thereo, or toke extrocts frerefrom in the presence of on outhorised officer ot such ploce ond time os such officer moy indicote in this behol{ except where moking such copies or toking such extrocts moy, in the opinion of the proper offcer, preju- d;ciolly offect the investigotion.

(6) The goods so seized under sub- section (2) sholl be releosed, on o provisionol bosis, upon execution ofo bond ond iurnishing of o security,ⁱⁿ such monner ond of such quontum, respedively, os moy be prescribed or on poyment of opplicoble tox, interest ond penolty poyoble, os the cose moy be.

(7) Where ony goods ore seized under sub-section⁽²⁾ ond no notice in respect thereof is qiven within six montlrs of the seizure ol the goods, the goods sholl be returned to the person from whose possession they were seized:

Provided thot the period of six months moy, on sufficient couse being shown, be extended by the proper officer {or o further period notexceeding six months.

(8) The Government moy, hoving regord to the perishoble or hozordous noture of ony goods, depreciotion in the volue of the goods with the possoge of time, constroints of storoge spoce for the qoods or ony other relevont

2 at 197 4

204

considerqtions, by notificotion, specify the goods or closs of goods which shoil, os soon os moy be ofter its seizure under sub- section (2), be disposed of by the proper officer in such monner os moy be prescribed.

(9) Where ony goods, being goods specified under sub-section^(8), hove been seized by o proper officer, or ony officer outhorised by him under sub.section (2), he sholl prepore on inventory of such goods in such monner os moy be prescribed.

(10) The provisions of the Code of Criminol Procedure, I 973, reloting to seorch ond seizure, sholl, so for os moy be, opplyto seorch ond seizure under this section subject to the modificotion thot sub- section⁽⁵⁾ of section 165 of the soid Code sholl hove effect os if for the word 'Mogistrote", wherever it occurs, the word 'Commissi- oner"were substituted.

(l I ) Where the proper officer hos reosons to believe thot ony person hos evoded or is

ottempting to evode the poyment of ony tox, he moy, for reosons to be recorded in writinq, seize the occounts, registers or documents of such person produced before him qnd sholl gront o receipt for the some, ond sholl retoin the some for so long os moy be necessory in connection with ony proceedings under this Act or the ru les mode thereunder for prosecution.

132

fl2)

68.0)

(2)

(3)

205

The Commissioner or on officer oulhorised by him moy couse purchose ofony goods or services or both by ony person outhorised by him from the business premises of ony toxoble person, to check the issue of tox invoices or bills of supply by such toxoble person, ond on return of goods so purchosed by such officel such toxoble person or ony person in chorge of the business premises sholl refund the omount so^poid towords the goods ofter concelling ony tox invoice or bill of supply issued eorlier.

The Government moy require the person in chorge of o conveyonce corrying ony consignment of goods of volue exceeding such omount os moy be specified to corry with him such documents ond such devices os moy be prescribed.

The detoils of documents required to be corried under sub-section⁽ l) sholl be volidotedⁱⁿ such monner os moy be prescribed.

Where ony conveyonce referred to in sub-section (l) is intercepted by the proper officer ot ony ploce, he moy require the person in chorge of the soid conveyonce to produce the docu ments

prescribed under the soid sub- section ond devices for

verificotion, ond the soid person sholl be lioble to produce the documents ond devices ond olso ollow the inspection of goods. lnspection

of goods in

movement.

133

206

69.^(l ) Where the Commissioner hos reosons to believe thot o person hos committed ony offence specified in clouse (o) or clouse

(b) or clouse (c) or clouse (d) of sub-section (l) of section¹³² which is punishoble under clouse

(i) or (ii) of sub-sedion (l ), or sub section (2) o{ the soid section, he moy, by order, outhorise ony officer of Stote tox to orrest such person.

(2) Where o person is orrested under sub-section (l) for on offence specified under sub-sedion⁽⁵⁾ of section 132, the officer outhorised to orrest the person sholl inform such person of the grounds of orrest ond produce him before o Mogistrote within twenty four hours.

(3) Subject to the provisions ol the Code of Criminol Procedure, 1973,-

(o) where o person is orrested under sub-section (l ) for ony offence specif ied under sub-section (4) of section '132, he sholl be odmitted to boil or in defoult of boil, forworded to the custody of the Mogistrote;

(b) in the cose of o non- cognizo ble ond boiloble offence, the Deputy Commi- ssioner or the Assistont Commissioner sholl, Ior the purpose of releosing on orrested person on boil or otherwise, hove the some powers ond be subject to the some provisions os on officer-in-chorge of o police stotion

Power to

orrest.

2 oI 197 4

5 o{ 1908 45 of 1860

70. (l)

(2)

7r.^(r)

(2)

207

The proper officer under this Act sholl hove power to summon ony person whose ottendonce he considers necessory either to give evidence or to produce o document orony othertfring in ony inquiry in the some monner, os provided in the cose ofo civilcourt under the provisions of the Code of Civil Procedure, I 908. Every such inquiry refened to in sub-section⁽ l) sholl be deemed to be o Judiciol proceedings"

within the meoning ol section 193 ond section 228 of the lndion Penol Code.

Any olficer under this Act, ou*rorised bythe proper officer not below the ronk of Joint

Commissioner, sholl hove occess to ony ploce ol business of o registered person to inspect books of occount, documents, computers, computer progroms, computer soltwore whether instolled in o computer or otherwise ond such other things os he moy require ond which moy be ovoiloble ot such ploce, for the purposes of corrying outony oudit scrutiny, verificotion ond checks os moy be necessory to

sofeguord the interest ol revenue. Every person in chorge of ploce referred to in sub-sedion (l ) sholl, on demond, moke ovoiloble to the officer outhorised under sub- section (l) or the oudit porty deputed by the proper officer^{or o} cost occountont or chortered occountont nominoted under section 66 --

Power to

summon

persons to

give

evidence

ond

produce

documents

Access to

business

premises.

135

l8 of 20l 3 43 of I961

20E

(i) such records os prepored or mointoined by the registered person ond declored to the proper off icer in such monner os moy be

prescribed;

(ii) triol bolonce or its equivolent;

(iii) stotements of onnuol finonciol occounts, duly oudited,

wherever required;

(iv) cost oudit report, if ony, under section 148 of the

ComponiesAct, 2013;

(v) the income-tox oudit report, if ony, under section 44AB ofthe lncome-tox Act, 1961; ond

(vi) ony other relevont record, for the scrutiny by the officer or oudit pofi or the chortered occountont or cost occount- ont within o period not

exceeding fifteen working doys from the doy when

such demond is mode. or

such further period os moy be ollowed by the soid oflicer or the oudit porty or the chortered occountont or cost occountont.

72. (1) All officers of Police, Roilwoys, Customs, ond those officers

engoged in the collection of lond revenue, including villoge officers, officers of centrol tox ond officers o{ the Union territory tox sholl ossist the proper officers in the implementotion of this Act.

Officers to

ossist proper

officers.

136

73. (r)

(2)

(3)

209

(2) The Government moy, by notificotion, empower ond require ony other closs of oflicers to ossist the proper officers in the implementotion of this Act when colled upon to do so by the Commissioner.

CHAPTER. XV

DEMANDS AND RECOVERY

Where it oppeors to the proper officer thot ony tox hos not been poid or short poid or erroneously refunded, or where inputtox credit hos been wrongly ovoiled or utilised lor ony reoson, other thon the reoson of froud or ony wilful misstotement or suppression ol focts to evode tox, he sholl serve notice on the person chorgeoble with tox which hos not been so poid or which hos been so short poid or to whom the refund hos erroneously been mode, or who hos wrongly ovoiled or utilised input tox credit, requiring him to show couse os to why he should not^poy the omount specifiedⁱⁿ the notice olong with interest poyoble thereon under section 50 ond o penolty levioble under the provisions of this Act or the rules mode thereunder.

The proper officer sholl issue the notice under sub-section (l) ot leost three months prior to the time limit specified in sub-section (10)for issuonce of order. Where o notice hos been issued for ony period under sub-section (l ), the proper officer moy serve o DebminotiJn

of tox not

poid or short

poid or

erroneously

refunded or

input tox

credit

wrongly

ovoiled or

utilised

for ony

reoson other

thon froud or

ony wilful

misstote-

ment or

suppression

of focts.

137

2to stotement, contoining the detoils of tox not poid or short poid or erroneously reiunded or input tox credit wrongly ovoiled or utilised for such periods other thon those covered under sub-sedion^{( l} ), on the person chorgeoble with tox.

(4) The service of such stotement sholl be deemed to be service of notice on such person under sub- section (l), subiect to the condition thot the grounds relied upon {or such tox periods other thon those covered under sub- section^(l ) ore the some os ore mentioned in the eorlier notice.

(5) The person chorgeoble with tox moy, before service of notice under sub-section^(l ) or, os the cose moy be, the stotement under sub-section (3), poy the omount ol tox olong with interest poyoble thereon under section 50 on the bosis of his own oscertoinment of such tox or the tox os oscertoined bythe proper officerond in{orm the proper oflicer in writing of such poyment.

(6) The proper officer, on receipt of such informotion, sholl not serve ony notice under sub-section (l ) or, os the cose moy be, the stotement under sub-section^(3), in respect ol the tox so poid or ony penolty poyoble under the provisions of this Act or the rules mode thereunder.

(7) Where the proper officer is of the opinion thottheomount poid under sub-section⁽⁵⁾ folls short of the omount octuolly poyoble, he sholl

138

2tt proceed to issue the notice os provided for in sub-section (l ) in respect of such omount which folls short of the omount octuolly poyoble.

(8) Where ony person chorgeoble wi*r tox under sub-section (l ) or sub- section (3) poys the soid tox olong with interest poyoble under section 50 within thirty doys of issue of show couse notice, no penolty sholl be poyoble ond oll proceedings in resped of the soid notice sholl be deemed to be concluded.

(9) The proper officer sholl, ofter considering the representotion, if ony, mode by person chorgeoble with tox, determine the omount of tox, interest ond o penolty equivolent to ten per cent.of tox or ten tlousond rupees, whichever is higher, due from such person ond issue on order.

(10) The proper officer sholl issue the order under sub-sedion⁽⁹⁾ within three yeors lrom the due dote for furnishing of onnuol return for the finonciol yeor to which the tox not poid or short poid or input tox credit wrongly ovoiled or utilised relotes to or within three yeors from the dote oferroneous refund. (ll) Notwithstonding onything contoined in sub-section (6) or sub-section (8), penolty under sub-section (9) sholl be poyoble where ony omount of self- ossessed tox or ony omount collected os tox hos not been poid within o period of thirty doys from the due dote of poyment of such tox.

139

74. (1)

(2)

(3)

(4)

212

Where it oppeors to the proper of- ficer thot ony tox hos not been poid or short poid or erroneously refunded or where input tox credit hos been wrongly ovoiled or utilised by reoson offroud, orony wilful misstotement or suppres- sion of focts to evode tox, he sholl serve notice on the person chorgeoble with tox which hos not been so poid or which hos been so short poid or to whom the re- fund hos erroneously been mode, or who hos wrongly ovoiled or utilised input tox credit, requiring him to show couse os to why he should not poy the omount speci- fied in the notice olong with inter- est poyoble thereon under section 50 ond o penolty equivolent to the tox specified in the notice. The proper officer sholl issue the notice under sub-section (l) ot leost six months prior to the time limit specified in sub-section (10) for issuonce of order.

Where o notice hos been issued for ony period under sub-section (l ), the proper officer moy serve o stotement, contoining the detoils of tox not poid or short poid or erroneously refunded or input tox credit wrongly ovoiled or utilised for such periods other thon those covered under sub-section (l ), on the person chorgeoble with tox. The service of stotement under sub-section⁽³⁾ sholl be deemed to be service of notice under sub- section (l)of section 73, subject to the condition thot the grounds Determino-

tion of tox

not poid or

short poid or

erroneously

refunded or

input tox

credit

wrongly

ovoiled or

utilised by

reoson of

froud or ony

wilful

misstote-

ment or

suppression

of focts.

140

2t3 relied upon in the soid stotement, except the ground offroud, or ony wilf ulmisstotement or suppression of focts to evode tox, for periods other thon those covered under sub-section (1) ore the some os ore mentioned in the eorlier notice.

(5) The person chorgeoble with tox moy, before service of notice under sub-section (l), poy the omount of tox olong with interest poyoble under section 50 ond o penolty equivolent to fifteen per cent. of such tox on the bosis of his own oscertoinmentof such tox or the tox os oscertoined by the proper officer ond inlorm the proper officer in writing of such poyment.

(6) The proper officer, on receipt of such informotion, sholl not serve ony notice under sub-section (l ), in respect of the tox so poid or ony penolty poyoble under the provisions of thisAct or the rules mode thereunder.

(7) Where the proper officer is of the opinion thotthe omount poid under sub-section (5) {olls short of the omount octuolly poyoble, he sholl proceed to issue the notice os provided for in sub-section^{( l} ) in respect of such omount which folls short of the omount octuolly poyoble.

(8) Where ony person chorgeoblewith tox under sub-sedion (l ) poys the soid tox olong with interest poyoble under section 50 ond o penolty equivolent to twenty five per cent of such tox within thirty doys of issue of the notice,^oll

141

2ll proceedings in respect ofthe soid notice sholl be deemed to^be concluded.

(9) The proper officer sholl, ofter considering the representotion,^if ony, mode by the person chorgeoble witir tox, determine the omount of tox, interest ond penolty due from such person ond issue on order.

(10) The proper officer sholl issue the order under sub-section⁽⁹⁾ within o period of five yeors from the due dote for furnishing of onnuolreturn for the finonciol yeor to which the tox not poid or short poid or input tox credit wrongly ovoiled or utilised relotes to or within five yeors from the dote of erroneous refund.

(l I ) Where ony person served with on order issued under sub-sedion (9) poys the tox olcrg with interest poyoble thereon under section 50 ond o penolty equivolent to fifty per cent of such tox within thirty doys of communicotion of the order, oll proceedings in resped of the soid notice sholl be deemed to be concluded.

Explonotion l.- For the purposes of section 73 ond this section, -

(i) the expression 'bll proceed- ings in respect of the soid notice"sholl not include pro ceedings under section 132;

(ii) where the notice under the some proceedings is issued to the moin person lioble to poy tox ond some other persons, ond such procee- dings ogoinst the moin

142

21,

person hwe been concluded under section 73 or section 74, the proceedings ogoinst oll the persons lioble to poy penolty under sedions l 22, 125, 129 ond 130 ore

deemed to be concluded. Explonotion 2.-For the purposes ol this Act, the expression

"suppression" sholl meon non- declorotion of focts or informotion which o toxoble person is required to declore in the return, stotement, report or ony ofrer document fumished under this Act orthe rules mode thereunder, orfoilure to furnish ony informotion on being osked for, in writing, by the proper officer.

7s. (l)

(2)

Where the service oI notice or issuonce of order is stoyed by on order oi o court or Appellote Tribunol, the period of such stoy sholl be excluded in computing the period specified in sub- sections (2) ond (10) of section 73 or sub-sedions (2) ond (10) of section 74, os the cose moy be. Where onyAppellote Authority or Appellote Tribunol or court concludes thot the notice issued under sub-section (l ) of section 74 is not sustoinoble for the reoson thot the chorges ol froud or ony wilful misstotement or suppression of focts to evode tox hos not been estoblished ogoinst the person to whom the notice wos issued, the proper officer sholl Generol

provisions

reloting to

deErminolbn

of tox.

143

216

determine thetox poyoble by such person, deeming os if the notice were issued under sub-seaion (l ) of section 73.

(3) Where ony order is required to be issued in pursuonce of the direction o{ the Appellote Authority or Appellote Tribunol or o court, such order sholl be issued within two yeors from the dote of commu n icotion of the soid direction.

(4) An opportunity of heoring sholl be gronted where o request is

received in writing from the person chorgeoble with tox or penolty, or where ony odverse decision^is contemploted ogoinst suc^h person.

(5) The proper officer sholl, i{ sufficient couse is shown by the person

chorgeoble with tox, gronttime to the soid person ond odjourn the heoring for reosons to be recorded in writing:

Provided thot no such odiournment sholl be gronted for more thon three times to o person during the proceedings.

(6) The proper officer, in his order, sholl setout the relevontfocts ond the bosis of his decision.

(7) The omount of tox, interest ond penolty demonded in the order sholl not be in excess of the omount specified in the notice ond no demond sholl be confirmed on the grounds other thon the grounds specified in the notice.

217

(8) Where the Appellote Authority or Appellote Tribunol or court modifies the omount of tox determined by the proper oflicer, the omountof interest ond penolty sholl stond modified occordingly, toking into occount the omount o{ tox so modilied.

(9) The interest on the tox short poid or not poid sholl be poyoble whether or not specified in the order determining the tox liobility. ('10) The odjudicotion proceedings sholl be deemed to be concluded, if the order is not issued within three yeors os provided for in sub- section (10) of section 73 orwithin five yeors os provided for in subsection⁽ l0) of section 74. (l I ) An issue on which the Appellote Authority or the Appellote Tribunol or the High Court hos given its decision which is prejudiciol to the interest of revenue in some other proceedings ond on oppeol to the Appellote Tribunol or the High Court or the Supreme Court

ogoinst such decision of the Appellote Authority or the

Appellote Tribunol or the High Court is pending, the period spent between the dote ol the decision of the Appellote Authority ond thot of the Appellote Tribunol or the dote oJ decision of the Appellote Tribunolond thot of the High Court or the dote of the decision of the High Court ond thot ol the

Supreme Court sholl be excluded in computing the period referred

218

to in sub-section (10) ol section 73 or sub-section (10) of section 74 where proceedings ore initioted by woy of issue of o show couse notice under the soid sections.

(12) Notwithstonding onything contoined in section 73 or section 74, where ony omount of self- ossessed tox in occordonce with o return furnished under section 39 remoins unpoid, either wholly or portly, or ony omountof interest poyoble on such tox remoins unpoid, the some sholl be recovered under the provisions of section 79.

(13) Where ony penolty is imposed under section 73 or section 74, no penolty lor the some oct or omission sholl be imposed on the some person under ony other provision ol this Act.

76. (l) Notwithstonding onything to the controry contoined in ony order or direction of ony Appellote

Authority orAppellote Tribunol or court or in ony other provisions of this Act or the rules mode

thereunder or ony other lowfor the time being in force, every person who hos collected from ony other person ony omount os

representing the tox under this Act, ond hos not poid the soid omount to the Government, sholl forthwith poy the soid omount to the Government, irrespective of whether the supplies in respect of which such omount wos collected ore toxoble or not.

Tox

collected

but not poid

to Govern-

ment.

2t9

(2) Where ony omount is required to be poid to the Government under subsedion (l), ond which hos not been so poid, the proper officer moy serve on the person lioble to poy such omount o notice

requiring him to show couse os to why the soid omount os specified in the notice, should not be poid by him to the Government ond why o penolty equivolent to the omount specified in the notice should not be imposed on him under the provisions of this Act.

(3) The proper olficer sholl, olter considering the representotion, if ony, mode by the person on whom the notice is served under sub- section (2), determine the omount due from such person ond

thereupon such person sholl poy the omount so determined.

(4) The person relerred to in sub- section (l) sholl in oddition to poying the omount re{erred to in sub-section (l ) or subsection⁽³⁾ olso be lioble to poy interest thereon otthe rote specified under section 50 from the dote such omount wos collected by him to the dote such omount is poid by him to the Government.

(5) An opportunity of heoring sholl be gronted where o request is

received in writing from the person to whom the notice wos issued to show couse.

(6) The proper officer sholl issue on orderwithin one yeorlrom the dote of issue of the notice.

147

(7)

(8)

(e) ( l0) (il)

77.⁽¹⁾

220

Where the issuonce of order^is stoyed by on order of the court orAppellote Tribunol, the period of such stoy sholl^be excluded in computing the period of one yeor.

The proper officer, in his order, sholl set out the relevont focts ond the bosis of his decision. The omount poid to the Govern- ment under sub-section (l ) or sub-section⁽³⁾ sholl be odjusted ogoinst the tox poyoble, if ony, by the person in relotion to the supplies referred to in sub-section (l).

Where ony surplus is left ofter the odiustment under sub-sec- tion (9), the omount o{ such surplus sholl either be credited to the Fund or refunded to the person who hos borne the incidence of such omount. The person who hos borne the incidence of the omount, moy opplyfor the refund of the some in occordonce with the

provisions of section 54. A registered person who^hos poid the centrol tox ond Stote tox on o tronsoction considered by him to be on intro-Stote supply, but which is

subsequently held to be on inter-Stote supply, sho ll be refunded the omount oftoxes so poid in such monner ond subject to such conditions os moy be prescribed.

Tox

wrongfully

collected

ond poid to

Centrol

Govemment

or Stote

GovemrnenL

221

(2) A registered person who hos poid integroted tox on o tronsoction considered by him to be sn inter- Stote supply, but which is subsequently held to be on intro- Stote supply, sholl not be required to poy ony interest on the omount of Stote tox poyoble.

78. Any omount poyoble by o toxoble person in pursuonce of on order possed under this Act sholl be poid by such person within o period ofthree monthsfrom the dote of service of such order f oiling which recovery proceedings sholl be initioted:

Provided thot where the proper officer considers it expedient in the interest of revenue, he moy, for reosons to be recorded in writing, require the soid toxoble person to moke such poyment within such period less thon o period of three months os moy be specified by him.

79. (1) Where ony omount poyoble by o person to the Government under ony of the provisions of this Act or the rules mode thereunder is not poid, the proper officer sholl proceed to recoverthe omount by one or more of the following modes, nomely :--

(o) the proper officer moy deduct or moy require ony other specified officer to deduct the omount so poyoble from ony money owing to such person which moy be under the control of the proper officer or such other specified officer ;

lnitiotion of

recovery

proceedings.

Recovery of

tox.

222

(b) the proper oflicer moy recover or moy require ony other specified officer to recover the omount so poyoble by detoining ond selling ony goods belonging to such person which ore under the control of the proper officer or such other specified officer;

(c) (i) the proper officer moy, by o notice in writing, require ony other person from whom

money is due or^moy

become due to such person or who holds or moy^sub-

sequently hold money for or on occount of such person, to^poy to the Government

either forthwith upon the money becoming due or

being held, orwithin the time specified in the notice not being before the money

becomes due or is held, so much of the money os is

sufficient to poy the omount due from such person or the whole of the money when it is equol to or less thon thot omount ;

(ii) every person to whom the notice is issued under sub- clouse⁽ⁱ⁾ sholl be bound to comply with such notice, ond in porticulol where ony such notice is issued to o post office, bonking com- pony or on insurer, it sholl not be necessory to produce ony poss book, deposit receipt, policy or ony other document for the purpose of ony entry endorsement or

223

the like being mode before poyment is mode, notwith- stonding ony rule, proctice or requirement to the controry ;

(iii) in cose the person to whom o notice under sub-clouse (i) hos been issued, foils to moke the poyment in

pursuonce thereof to the Government, he sholl be deemed to be o defoulter in respect of the omount

specifiedⁱⁿ the notice ond oll the consequences of thisAd ortre rules mode frereunder shqll follow;

(iv) the officer issuing o notice under sub-clouse⁽ⁱ⁾ moy, ot ony time, omend or revoke such notice or extend the time for moking ony poyment in pursuonce of the notice;

(v) ony person moking ony poyment in complionce with o notice issued under sub- clouse (i) sholl be deemed to hove mode the poyment under the outhority of the person in defoult ond such poyment being credited to the Government sholl be deemed to constitute o good ond sufficient dischorge of the liobility of such person to the person in deloult to the extent of the omount

specified in the receipt;

(vi) ony person dischorging ony liobility to the person in defoult ofter service on him

224

of the notice issued under sub-clouse (i) sholl^be personolly lioble to the Government to the extent of the liobility dischorged or to the extent of the liobility of the person in defoult for tox, interest ond penolty, whichever is less;

(vii) where o person on whom o notice is served under sub- clouse (i) proves to the sotisfoction of the officer issuing the notice thot the money demonded or ony port thereof wos not due to the person in defoult or thot he did not hold ony money for or on occount of the person in defoult, ot the time the notice wos served on him, nor is the money demonded or ony^port

thereof, likely to become due to the soid person or be held for or on occount of such person, nothing contoined in this section sholl be deemed to require the person on whom the notice hos been served to poy to the

Government ony s uch

money or port thereof;

(d) the proper officer moy, in occordonce with the rules to be mode in this beholf, distroin ony movoble or immovoble property

belonging to or under the control of such person, ond detoin the some until the omount poyoble is poid ; ond

225

in cose, ony port of the soid omount poyoble or of the cost of the distress or keeping of the property, remoins unpoid for o period of thirty doys next ofter ony such distress, moy couse the soid property to be sold ond with the proceeds of such sole, moy sotisfy the omount poyoble ond the costs including cost of^sole remoining unpoid ond sholl render the surplus omount, if ony, to such person;

(e) the proper officer moy prepore o certificote signed by him s pec ifying the omount due from such person ond send it to the Collector of the district in which such person owns ony property or resides or corries on his business or to ony officer outhorised by the Government ond the soid Collector^or the soid officer, on receiptol such certificote, sholl proceed to recover from such person the omount specified thereunder os if it were on orreor of lond revenue;

(f) Notwithstonding onything contoined in the Code of Criminol Procedure, 1973, the proper officer moy lile on opplicotion to *re oppropriote Mogistrote ond such

Mogistrote sholl proceed to recover from such person the omount specified

thereunder os if itwere o fine imposed by him.

2 of 197 4.

226

(2) Where the terms of ony bond or other instrument executed under thisAct or ony rules or regulotions mode thereunder provide thot ony omount due under such

instrument moy be recovered in the monner loid down in sub- section (l), the omount moy, without preiudice to ony other mode of recovery be recovered in occordonce with the provisions of thot sub-section.

(3) Where ony omount ol tox, interest or penolty is poyoble by o person to the Government under ony of the provisions of this Act or the rules mode thereunder ond which remoins unpoid, the proper officer of centrol tox, during the course of recovery of soid tox orreors, moy recover the omount from the soid person os if itwere on orreor of centrol tox ond credit the omount so recovered to the occount of the Government.

(4) Where the omount recovered under subsection (3) is less thon the omount due to the Centrol Government ond Stote

Government, the omount to be credited to the occount of the respective Governments sholl be in proportion to the omount due to eoch such Government.

80. On on opplicotion filed by o toxoble person, the Commissioner moy, for reosons to be recorded in writing, extend the time for poyment or ollow poyment of ony omount due under this Act, other thon the omount due os per the liobility self- ossessed in ony return, Poyment of

tox ond

other

omount in

instolments

)17

by such person in monthly instolments not exceeding twenty Iour, subiect to poyment of interest under section 50 ond subiect to such conditions ond limitotions os moy be prescribed:

ftovided trot where trere is defouh in poyment of ony one instolment on its due dote, the whole outstonding bolonce poyoble on such dote sholl become due ond poyoble forthwith ond sholl, without ony further notice being served on the person, be lioble for recovery.

81 . Where o person, ofter ony omount hos become due from him, creotes^o chorge on or ports with the property belonging to him or in his possession by woy of sole, mortgoge, exchonge, or ony other mode of tronsfer whotsoever of ony of his properties in fovour of ony other person with the intention of defrouding he Government revenue, such chorge or tronsfer sholl be void os ogoinst ony cloim in respect of ony tox or ony other sum poyoble by the soid person:

Provided thot, such chorge or tronsfer sholl not be void if it is mode for odequote considerotion, in^good foith ond without notice of the pendency of such proceedings under this Act or without notice ol such tox or other sum poyoble by the^soid person, or with the previous permission of the proper officer.

82. Notwithstonding onything to the controry contoined in ony low for the time being in force, sove os otherwise provided in the lnsolvency ond Bonkruptcy Code, 2016, ony omount poyoble by o toxoble person or ony other p€rson on occount 30 of 2016

Tronsfer of

property

to be void in

certoin

coses.

Tox to be first

chorge on

property

155

228

of tox, interest or penolty which he is lioble to poy to the Government sholl be o firstchorge on the property of such toxoble person or such person.

83. (l ) Where during the pendency of ony proceedings under section 62 or section 63 or sedion 64 or section 67 or section 73 or section 74, the Commissioner is of the opinion thot for the purpose of protecting the interest of the Government revenue, it is necessory so to do, he moy, by order in writing ottoch provisionolly ony property,

including bonk occount, belonging to the toxoble person in such monner os moy be prescribed.

(2) Every such provisionol ottochment shollceose to hove effect ofterthe expiry ofo period of one yeorfrom the dote of the order mode under sub-section (l ).

84. Where ony notice of demond in respect of ony tox,penolty, interest or ony other omount poyoble under this Ad, (hereofter 'in this section referred to os 'Government dues'), is served upon ony toxoble person or ony other person ond ony oppeol or revision opplicotion is filed or ony other proceedings is initioted in respect of such Government dues, then--

(o) where such Government dues ore enhonced in such oppeol, revision or other proceedings, the

Commissioner sholl serve upon the toxoble person or ony other person onother Provisionol

oftochment

to

protect

revenue in

certoin

coses.

Continuotion

ond

volidotion of

certoin

recovery

proceedings.

229

notice of demond in respect of the omount by which such Government dues ore enhonced ond ony recovery proceedings in relotion to such Government dues os ore covered by the notice of demond served upon him before the disposol of such oppeol, revision or other proceedings moy, without the service of ony fresh notice of demond, be continued from the stoge ot which such proceedings stood imme- diotely beiore such disposol ;

(b) where such Government dues ore reduced in such oppeol, revision or in other proceedings-

(i) it sholl not be necessory for the Commissioner to serve upon the toxoble person o fresh notice of demond;

(ii) the Commissioner sholl give intimotion of such reduction to him ond to the oppropriote outhority with whom recovery

proceedings is pending;

(iii) ony recovery procee- dings initioted on the bosis of the demond served upon him prior to the disposol of such oppeol, revision or other proceedings moy be continued in relotion to the omount so reduced from the stoge ot which such proceedings stood immediotely before such disposol.

230

CHAPTER^- XVI

LIABILITYTO PAY IN CERTAIN CASES

85. (l ) Where o toxoble person, lioble to poy tox under this Act, tronslers his business in whole or in port, by sole, gift, leose, leove ond license, hire or in onyotter monner whotsoever, the toxoble person ond the person to whom the

business is so tronslerred sholl, lointly ond severolly, be lioble wholly or to the extent of such tronsfer, to^poy the tox, interest or ony penolty due from the toxoble person upto the time o{ such tronsfer, whether such tox, interest or penolty hos been determined belore such tronsfet but hos remoined unpoid or is determined thereofter.

(2) Where the tr.'nsferee of o business refened to in sub-sedion (l ) corries on such business either in his own nome or in some other nome, he sholl be lioble to^poy tox on the supply of goods or services or both effected by him with effect from the dote of such tronsfer ond sholl, if he is o regis- tered person under thisAct, opply within the prescribed time^for omendment of his certificote ol registrotion.

86. Where on ogent supplies or receives ony toxoble goods on beholf of his principol, such ogent ond his principol sholl, lointly ond severolly, be lioble to poy the tox poyoble on such goods under this Act.

Liobilityⁱⁿ

cose of

tronsfer ol

business.

Liobility of

ogent

ond princi-

Pol.

87.^{(r )}

(2)

88. (l)

(2)

231

When two or more componies ore omolgomoted or merged in pursuonce of on order of court or of Tribunol or otherwise ond the order is to toke effect from o dote eorlier to the dote ofthe order ond ony two or more of such com- ponies hove supplied or received ony goods or services or both to or from eoch other during the period commencing on the dote from which the order tokes effect tillthe dote ofthe order, then such tronsoctions of supply ond receipt sholl be included in the turnover of supply or receipt of the respective componies ond they sholl be lioble to poy tox occordingly.

Notwithstonding o nyth ing contoined in the soid order, forthe purposes of this Act, the soid two or more componies sholl be treoted os distinct componies for the period up to the dote ol the soid order ond the registrotion certificotes ol the soid componies sholl be concelled with effed from the dote of the soid order. When ony compony is being wound up whether under the orders of o court or Tribunol or othenvise, every person oppointed os receiver of ony ossets of^o compony (hereofter in this section referred to os ttre liquidotor'), sholl. within thirty doys ofter^his

oppointment, give intimotion of his oppointment to the Commissioner. The Commissioner sholl, ofter moking such inquiry or colling for such informotion os he moy deem Liobility in

cose of

trmlgcrndftn

or

merger oI

componies.

Liobilityⁱⁿ

cose of

compony in

liquidotion.

159

18 of 201 3

(3)

8e.^{(r )}

232

fit, notify the liquidotor within three months from the dote on which he receives intimotion of the

oppointment of the liquidotor, the omountwhich in the opinion of the Commissioner would be sufficient to provide for ony tox, interest or penolty which is then, or is likely thereofter to become, poyoble by the compony.

When ony privote compony is wound up ond ony tox, interest or penolty determined under thisAct on the compony for ony period, whether before or in the course of or ofter its liquidotion, connot be recovered, then every person who wos o director of such compony ot ony time during the period for which the tox wos due sholl, jointly ond severolly, be lioble Ior the poyment of such tox, interest or penolty, unless he proves to the sotisfoction of the Commissioner thot such non-recovery connot be ottributed to ony gross neglect, misleosonce or breoch of duty on his port in relotion to the offoirs of the compony.

Notwithstonding onything con- toined in the Componies Act, 201 3, where ony tox, interest or penolty due from o privote

compony in respect of ony supply of goods or services or both for ony period connot be recovered, then, every person who wos o director ol the privote compony during such period sholl, jointly ond severolly, be lioble for the poyment of such tox, interest or penolty unless he proves thot the Liobility of

diredors

of privote

compony.

160

233

nonrecovery connot be ottributed to ony gross neglect, mis- feosonce or breoch of duty on his port in relotion to the offoirs of the compony.

(2) Where o privote compony is converted into o public compony ond the tox, interest or penolty in respect of ony supply of goods or services or both for ony period during which such compony wos o privote compony connot be recovered before such conversion, then, nothing contoined in sub- section (1) sholl opply to ony person who wos o director of such privote compony in relotion to ony tox, interest or penolty in respect of such supply of goods or services or both of such privote compony:

Provided thot nothing contoined in this sub-section sholl opply to ony personol penolty imposed on such director.

90. Notwithstonding ony controct to the controry ond ony other low lor the time being in force, where ony firm is lioble to poy ony tox, interest or penolty under thisAct, the firm ond eoch of the portners of the firm sholl, jointly ond severolly, be lioble for such poyment :

Provided thot where ony portner retiresfrom the firm, he or thefirm, sholl intimote the dote ol retirement of the soid portner to the Commissioner by o notice in thot beholf in writing ond such portner sholl be lioble to poy tox, interest or penolty due upto the dote of his retirement whether determined or not, on thot dote :

Liobility ol

portners

of firm to

poy tox.

231

Provided further thot if no such intimotion is given within one month from the dote of retirement, the liobility of such portner under the first proviso sholl continue until the dote on which such intimotion is received by the Commissioner.

91. Where the business in resped of which ony tox, interest or penolty is poyoble under this Act is corried on by ony guordion, trustee or ogent of o minor or other incopocitoted person on beholf of ond for the benefit of such minor or other incopocitoted person, the tox, interest or penolty sholl be levied upon ond recoveroble from such guordion, trustee or ogent in like monner ond to the some extent os it would be determined ond recoveroble from ony such minor or other incopocitoted person, os if he were o mojor or copocitoted person ond os if he were conducting the business himself, ond ollthe provisions of thisAa orthe rules mode thereunder sholl opply

occordingly.

92. Where the estote or ony portion of the estote of o toxoble person owning o business in respect of which ony tox, interest or penolty is poyoble underthis Act is under the control of the Court of Words, the Administrotor Generol, the Off iciol Trustee or ony receiver or monoger (includlng ony person, whotever be his designotion, who in foct monoges the business) oppointed by or under ony order of o court, the tox, interest or penolty sholl be levied upon ond be recoveroble from such Court of Words, Administrotor Generol, Officiol Trustee, receiver or monoger in like monner ond to the some extent os it Liobility of

guordions,

trustees

etc.

Liobility of

Court of

Words, etc

3l of 201 6 93. (l )

235

would be determined ond be recoveroble from the toxoble person os if he were conducting the business himself, ond oll the provisions of this Act or the rules mode thereunder sholl opply occordingly.

Sove os otheruise provided in the lnsolvency ond Bonkruptcy Code, 2016,where o person, lioble to poy tox, interest or penolty under this Act, dies, then--

(o) il o business corried on by the person is continued ofter his deoth by his legol representotive or ony other person, such legol represen- totive or other person, sholl be lioble to poy tox, interest or penolty due from^such person under this Act ; ond

(b) if the business corried on by the person is discontinued, whether before or ofter his deoth, his legol represen- totive sholl be lioble to^poy, out of the estote of the deceosed, to the extent to which the estote is copoble of meeting the chorge, the tox, interest or penolty due from such person under this Act,

whether such tox. interest or penolty hos been

determined before his deoth but hos remoined unpoid or is determined sfter his deoth. Sove os otherwise provided in the lnsolvency ond Bonkruptcy Code, 2016, where o toxoble person, lioble to poy tox, interest or penolty underthisAct, is o Hindu Speciol

provisions

regording

liobility to

poy tox,

interest or

penolty in

certoin

coses.

31 oi2016. Q\

163

31 of20l6.

236

U ndivided Fomily or on ossociotion of persons ond the property of the Hindu Undivided Fomily or the ossociotion of persons is portitioned omongst the vorious members or groups of members, then, eoch member or group of members sholl, iointlyond severolly, be lioble to^poy the tox, interest or penolty due from the toxoble person under this Act upto the time of the portition whether such tox, penolty or interest hos been determined before portition but hos remoined unpoid or is determined ofter the portition.

(3) Sove os otherwise provided in the lnsolvency ond Bonkruptcy Code, 2016, where o toxoble person, lioble to poy tox, interestor penolty under this Act, is o firm, ond the firm is dissolved, then, every person who wos o portner sholl, jointly ond severolly, be liobie to poy the tox, interest or penolty due from the firm under this Act upto the time of dissolution whether such tox, interest or penolty hos been determined before the dissolution, but hos remoined unpoid or is determined ofter dissolution.

(4) Sove os otherwise provided in the lnsolvency ond Bonkruptcy Code, 2016, where o toxoble person liobleto poy tox, interestor penolty under this Act.--

(o) is the guordion of o word on whose beholfthe business is corried on by the guordion; or

3l of 2016.

164

e4.^{(t )}

237

(b) is o trustee who corries on the business under o trust for o beneliciory

then, if the guordionship or trust is terminoted, the word or the beneficiory sholl be lioble to poy the tox, interest or penolty due from the toxoble person upto the time of the terminotion of the guordion-ship or tru st, whether such tox, interest or penolty hos been determined before the terminotion of guordionship or trust but hos remoined unpoid or is

determined thereofter. Where o toxoble person is o Iirm or on ossociotion of persons or o Hindu Undivided Fomily ond such firm, ossociotion or fomily hos discontinued business--

(o) the tox, interest or penolty poyoble under this Act by such firm, ossociotion or fomily upto the dote of such discontinuonce moy be

determined os if no such discontinuonce hod token ploce; ond

(b) every person who, ot the time of such discontinuonce, wos o portner of such firm, or o member of such ossociotion or fomily, sholl, notwith- stonding such d isconti- nuonce, jointly ond severolly, be lioble {or the poyment of tox ond interest determined ond penolty imposed ond poyoble by such firm, osso- ciotion or Iomily, whether Liobility in

other

coses.

165

238

such tox ond interest hos been determined or penolty imposed prior to or ofter such discontinuonce ond subject os oforesoid, the provisions of this Act sholl, so for os moy be, opply os if every such person or portner or member were himself^o

toxoble person.

(2) Where o chonge hos occurred in the constitution of o firm or on ossociotion of persons, the portners of the firm or members ofossociotion, os it existed before ond os it exists ofter^the reconstitution, sho ll, without prejudice to the provisions oi section 90, jointly ond severolly, be lioble to^poy tox, interest or penolty due from such firm or ossociotion for ony period before its reconstitution.

(3) The provisions of sub-section (l ) sholl, so for os moy be, opply where the toxoble person, being o firm or ossociotion of persons is dissolved or where the toxoble person, being o Hindu Undivided Fomily, hos effected portition with respect to the business corried on by it ond occordingly references in thot sub-section to disconti- nuonce sholl be construed os reference to dissolution or to portition.

Explonotion.-For the purposes of this Chopter,-

0 o 'Limited Liobility Portner ship"formed ond registered

6 of 2009