Manipur act 003 of 2017 : The Manipur Goods and Services Tax Act, 2017

«$3113

EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 88 7 Imphal, Wednesday, June 14, 2017 (Jyaistha 24, 1939)

GOVERNMENT OF MANIPUR

SECRETARIAT: LAW& LEGISLATIVE AFFAIRS DEPARTMENT

NOTIFICATION

Imphal, June 14,2017 No. 2/29/2017—-Leg/L: The following Act ofthe Legislature, Manipur Which received assent of the Governor ofManipur on June 14,2017IS hereby publishedin the Official Gazette:

\1

THE MANIPUR GOODS AND SERVICES TAX ACT, 2017

(Manipur Act No. 3 of 2017)

AN

ACT

to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the State of Manipur and the matters connected therewith or incidental thereto. BE it enacted by Legislature of Manipur in the Sixty-eighth Year ofthe Republic oflndia as follows:-

CHAPTER I

PRELIMINARY

(1) ThisAct maybe called the Manipur Goods and Services Tax Short title m: and Act, 2017. mmm'm'm

(2) It extends to the whole of Manipur

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act and any reference in any such provisions to the commencement ofthis Act shall be construed as a reference to the coming into force ofthat provision.

1

ACT!"

2. ^InthisAct,unless^thecontext otherwise require s,—

(1)

(2)

(3)

"actionable claim" shall have the same mea ning as

assigned to it in section 3 of the Transfer of Pfop eity

Act, 1 882;

"address (5f delivery" means the address ofthe recip ient

ofgoods or services or both indicated on the tax invoice

issued by a registered person for delivery of such goods

or services or both;

"address on recor " means the address of the re cipient

as available in the records ofthe supplier; Definitions.

2

(4)

(5)

(6)

(7)

<8)

(9)

(10)

(11)

(12)

, assigned to it in section 92A ofthe Income-tax Act, 1961; 43 of1961.

"adjudica'ting authority" means any authority, appointed or authorised competent to pass any order or decision under this Act, but does not include the Commissioner, Revisional Authority, the Authority for Advan'ce Ruling. the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;

"agent" means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;

"aggregate turnover" means the aggregate value of all taxable supplies (excluding the value ofinward supplies on which tax15 payable by a person on reverse charge basis), exempt supplies, exports ofgoods or services or both andinter—State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, - Union territory tax, integrated tax and cess;

"agriculturist" means an individual or a Hindu Undivided A Family who undertakes cultivation of land— '

(a) by own labour, or

(b) by the. labour of family, or

(c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;

"Appellate Authority" means, an Authority appointed or authorised to hear appeals and referred "to in section 107;

"Appellate Tribunal" means the Goods and Services Tax Appellate Tribunal referred to in section109;

"appointed day" means the date on which the provisions of this Act shall come into force;

"assessment" means determination of tax liability under this Act and includes self-assessment, re—assessment, provisional assessment, summary assessment and best judgement assessment;

"associated enterprises" shall have the same meaning as \

54 of 1963

(13) "audit" means the examination of records, returns and other

(14)

(15)

(16)

(17)

documents maintained or furnished by the registered per son

under this Act or the miles made there under or under any

other law for the time being in force to verify the correct ness

of turnover declared, taxes paid, refund claimed and input t ax

credit availed, and to assess his compliance with the provis ions

of this Act or the rules made thereunder;

V

"authorised bank". shall mean a bank or a branch of a bank

authorisedbythe Central Gammmodlectfllem Otany

other amount payable under this Act; ~

"audiorised representative" means the represent ative as

referredtounder section 116;

"Board" means the Central Board of Excise and Cu stOms

constituted under the Central Boards of Revenue A ct, 1963;

"business" includes-

(a) any trade, commerce, manufacture, profession, voc ation,

adventure, wager or any other similar activity, whet her or

not it is for a pecuniary benefit; -

(b) any activity or transaction in connection wi th or

incidental or ancillary to sub—clause (a);

(c) any activity or transaction. in the (nature ofsu b-clause (a),

whether or not there is volume,frequency, continuit y or

regularity of such transaction;

(d) supply or acquisition of goods including capital good s

and services in connection with commenceme nt or

closure ofbusiness;

(e) provision by a club, association, society or any suchbod y

(for a subscription or any "other consideration) of th e

facilities or benefits to its members;

(f) admission, for a consideration, of persons to an y

premises; _

(3) services supplied by a person as the holder of an office

which has been accepted by him in the course or furtherance ofhis trade, profession or vocation;

38 of 1949

(18)

'11) services provided by a race club by way oftotal is at Grier ' a licence to book maker in such club; and

(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;

"business vertical" means a distinguishable component of an enterprise that is engaged in' the supply ofan individual goods or services or a group of related goods or services which is subject to risks and returns that are difierent from those ofthe other business verticals. . ,

Explanation :— For the purposes of this clause, factors that should ' be considered in determining whether goods or services an rdatzed include—

('19)

(20)"

(21)

(22)

(23)

(a) the nature ofthe goods or serViCes; ,

(b) the nature of the production processes; .

(c) the type or class of customers for the goodsor services; ((1) the methods used to distribute the goods or supply of services; and

(e) the nature of regulatory environment (wherever applicable), including banking, insurance or public utilities;

"capital goods" means goods, the value of which is capitalised in the books of accounts of the person claiming the input tax credit and which are used or intended to be used in the course

"or furtherance ofbusiness; a1 taxable person" means aperson who occasionally ; undagtakes transactions involving supply of goods or services ' or both111 the course or furtherance of business, whether as pxmcipalyagenta:in any other capacity, in the taxable territory where hehas :19 fixed place ofbusiness; 2

"central tax' the central goods and services tax levied under section9ofthe Central Goods and Services Tax Act;

"cess" shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to'States).Act;

"chartered accou'n t" means a chartered accountant as defined in clause Q of sub-section (1) of section 2 of the Chartered Accountants Act, 1949;

56 of 1980

(24) "Commissioner" means _ the Commissioner of State tax appointed under section 3;

(25) "Commissioner in the Board" means the Commissioneri referred to in section 168 of the Central Goods and Services "

Tax Ad; ' > 7

(26) "common portal" means the common goods and services tax electronic portal referred to in section 146;

(27) "common working days" shall mm such days in succession ' which are not declared as gazetted holidays by the Central Goyernment or the Government ofManipur;

(28) "company secretary" means a company secretary as defined in clause (c ) of sub-section '(1) of section 2 of the Company Secretaries Act, 1980; .

(29) "competent authority" means such authority as may be notified by the Government; . ' *

(30) "composite supply" means'a supply made by a taxable person

. to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; '

Illustrationz- Where goods are packed and transported with insurance, the supply bf goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. ,

(3 1) ' "consideration" in relation to the supply ofgoods or'sgggvicesor ' both includes— . V , ,5; , :

(a) any payment made or to be madeywhetheituin'emoney or otherwise, in respect of,' htiespons'e atbs'g'QFfOl' the inducement of, the supply of goods or services or both, whether by the recipient or by $1.31!.me person but shall not include anysubsidygiven by; _; {?Central Government or a State Government; ' " '

23 of 1959

(b) the monetary value of any act or forbearance, in respect of, in'response to, or for the inducement of,_the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: - Provided that a deposit given in respect ofthe supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;

(32)

(33)

(34)

(35)

(365

(37)

(38)

(39)

(40)

"continuous supply ofgoods" means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of'such goods as the Government may, subject to such conditions, as it may, by notification, specify;

"continuous supply of services" means a supply of services which is provided, or agreed to be provided, continuously 'or on recurrent basis, tinder a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify;

"conveyance" includes a vessel, an aircraft and a vehicle;

"cost accountant" means a cost accountant as defined in clause

(c) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959;

"Council" means the Goods and Services Tax Council established under article 279A ofthe Constitution; '

"credit note" means a document issued by a registered person under sub-section (1) ofsection 34;

"debit note" means a document issued by a registered person under subsection (3) ofsection 34;

"deemedeitports" means such sugplies of goods as may be notified under section 147; .

5

/

,

'fdesignated authority" meanssuch authority as maybe notified by the Commissioner; 1 , . .

210f2000

(41)

(42)

(43)

(44)

(45)

(45)

(47)

"docuinent" includes written or printed record ofany sort and electronic record as defined in the Information Technology .Act, 2000-

"drawbaclf' in relation to any gOOds manufactured in India

"and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture ofsuch goods:

"electronic cash ledger" means the electronic cash ledger referred to in subsection (1) ofsection 49;

"electronic cOmmerce" means the supply of goods or services or both, including digital products over digital or electronic network;

"electronic commerce operator" means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce; .

"electronic credit ledger" means the electronic credit ledger referred to in sub-section (2) of section 49;

"exempt supply" means supplyofanygoods or services or both which attracts nil rate. oftax or which maybe exempt from tax ' under section 11, or under section 6 of the Integrated'Goods

(48)

(49)

(50)

and Services Tax Act; and includes non- taxable supply;

"existing law" means any law, notification, order, rule or regulation relating to le'Vyandcollectionofdutyortaxongoods or services or both passed or made before the cbmmencement of this Act by the Legislature or any authority or person having the power to make such law, notification, order, rule or regulation;

"family" means,—

(i) the spouse and children ofthe person, and

(ii) the parents, grand-parentsbrothers and sisters of the person if they are who11y or mainly dependent on the said person; . .

"fixed establishment" means a place (other than the registered place ofbusiness) which is characterised by a sufficient degree , of permanence and suitable structure in terms ofhuman and technical resources to supply seryices, or to receive and use services for its own needs;

8

80 of 1976

(51)

(52)

(53)

(54)

(55)

(56)

(57)

(58)

(59)

(60)

(61)

"Fund" means the Consumer Welfare Fund established under section 57;

"goods" means every kind of movable property other than money and securities but includes actionable claim, gmwing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract ofsupply;

"Government" means the Government of Manipur;

"Goods and Services" Tax (Compensation to States) Act"

means the Goods and Services Tax (Compensation to States) Act. 2017;

"goods and services tax practitioner" means any person who has been approved under section 48to act as such practitioner;

"India" means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters

'Integrated Goods and Services Tax Act" means the Integrated Goods and Services Tax Act, 2017;

"integrated tax" means the integrated goods and services tax levied under the Integrated Goods and Services Tax Act;

"input" means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance ofbusiness;

"input service" means any service used or intended to be used by a supplier in the course or furtherance ofbusiness;

"Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issuesa prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that ofthe said office;

(62)

(63)

(64)

(65)

(66)

(67)

(63)

(69)

10

"input tax" in relation to a registered person, means the central tax, State tax, integrated tax 01 Union territory tax charged on any supply ofgoods or services or both and includes—

(a) the integrated goods and services tax charged on import ofgoods;

(b) the tax payable under the provisionsofsubsections (3) and (4) of section 9;

(c) the tax payable under the provisions of sub-section (3) and (4) of section 5 ofthe Integrated Goods and Services Tax Act; -or

(d) the tax payable under the provisiens of sub-sections (3) and (4) of section 9 of the Central Goods and Services Tax Act,

but does not include the tax paid under the composition levy;

"input tax credit' means the credit ofinput tax;

"intra-State supplyofgoods' shall havethe meaning as assigned to it1n section 8 ofthe IntegratedGoods and Services Tax Act;

"intra-State supply of services" shall have the meaning as assigned to it in section 8 ofthe Integrated Goods and Services Tax Act;

"invoice" or "tax invoice" means the tax invoice referred to in section 31;

"inward supply" in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means, with or without consideration;

"job work" means any treatment or process undertaken by a person on goods belonging to another registered person and the expression "job worker" shall be construed accordingly;

"local authority" means—

(a) a "Panchayat' as defined in clause (d) ofarticle 243 ofthe Constitution;

(b) ' a"Municipality"asdefinedinclause(e)ofarticle243P of the Constitution;

(c) aMunicipalComnntteaaZillaParishad.aDistrictBoard. and any other authority legally entitled to, or entrusted by the Central Government or any State Goya'nment with the control or management of a municipal or local fund;

(ldm

(70)

mi

(72)

(d) . (e)

(f)

(g)

11

a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;

'a Regional Council or a District Council constituted under the SixthSchedule to the Constitution; a Development Board censtituted under article 371 of the Constitution; or

a Regional Council constituted under article 371A ofthe Constitution; -

"location ofthe recipient of's'ei'vices" means,- (a)

(b)

(C)

«D

where a supply is received at a place of business for which the registration has been obtained, the location of such place ofbusiness;

where a supply is received at a place other than the place . of business for which registration has been obtained (a fixed establishment elsewhere), the Incation ofsuch fixed establishment;

where a supplyis received atmorethan one establishment, whether the place of business or fixed establishment, the location of the" establishment most directly concerned with the receipt ofthe supply; and

in absence of such places, the location of the usual place . ofresidence ofthe recipient;

"location 'of the supplier ofservices" means,— (a)

(b) ,

(C)

(d) where a supply is made from a place of business for which the registration has been obtained, the location of such place ofbusiness;

where a supplyis made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location ofsuch fixed establishment; ' ' »

whereasupplyismadefrommorethan oneestablishment, whether the place ofbusiness or fixed establishment, the location of the establishment most directly concerned with the provisions ofthe supply; and

in absence of such places, the location ofthe usual ofresidence ofthe supplier; '

/

"manufacture" means processing of raw material or inputs in any manner that results in emergence ofa new product having a distinct name, character and use and the term "manufacturer"

shall be construed accordingly; '

11

S9 of 1988

(73)

(74)

12

"market value" shall mm the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related;

"mixed supply" means two or more individual supplies of taxable goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.

Illustration:- A supply of a package consisting ofcanned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when

items

(75)

(76)

(77)

(78)

(79)

(80) ' supplied for a single price is a mixed supply. Each of these can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;

"money? means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit. draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value;

"motor vehicle" shall have the same meaning as assigned to it in clause (28) of section-Z ofthe Motor Vehicles Act, 1988;

"nen-resident taxable person" means any person who occasionally undertakes transactions involving supply of goods or services or ,both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India;

"non-taxable supply" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act or under the Union Territory Goods and Services Tax Act;

"non-taxable territory" means the territory which is outside the taxable territory;

"notification" means a notification published in the Oflicial Gazette and the expressions 'notify' and 'notified' shall be construed accordingly;

12

of2013 21 of 1860

(81)

13""

"other territory"iddudesterritoriesother :than those comprising in a State andthese referred to msub-clauses (a) ' 32mm ofcianse(1149

(82)

(83)

{wwwn ~ 13-» 121.,

"output tax? in relationtoa taxable person, meansthe tax chargeable undeithis A 3;9n taxable supplyofgoods or services or both madeby .or by his agent but exdudes tax payablebyhim on reverse charge basis; 7,

"outward supply" in relation to a taxable person, means supply ofgoods or services or both, whether by sale, transfer, barter, . exchange, iicenCe, rental lease or disposal 01- any other mode, made or agreedtbbe niade by such person in the course or furtherance ofbusiness;

<84»)

(a) an individual;

(b) a Hindu undivided family titer a company;

"(d)" afirm;~v

(e) a Limited Liability Partnership;

(f) an association of persons'31.- a body of indivxduals, whetherincorporatedornohpIndia61'outsideIndia;

(g) anymention establishedhymfingrany CentralAct, State Act or Provincial Act or a Government company as defined'1n clause (45) ofsection 2 ofthe CompaniesAct, 9 , 2013; i '

3 (h) anybody cnrporate incorporatedbyorunder the laws of a country outside India;

(i) a ca-ogeratlvesociety registered underany law relating to cooperative societies;

(j)gaiocal authority; .

(k) Central Government or a StatenGovemment;

(l) societyasdefined under the SocietiesRegistration Act, 1860; 2 t,g 9

3 (m)wt;and 5: v

'zzs'tz

(n)everyartificial )undrcalpersen,mtfalhngwithin any of , the above; ' E

(8533splaceofbusmessghpcludes—

:~ :3 a , " 5111

(a) apIacefmm where.thetbusmessisordinarily carried on, a* andnneludes aWarehouse,«ago'down Orany other place ." , ewwhéneta Mbte personstoreshis goods, shpplies or receives goods or services or both; or E z

13

(86)

(87)

(88)

(89)

(90)

. (91)

(92)"

(és)

14

(b) a place where a taxable person maintains his books of

. aécount; or (c)vaplacewhereataxablepersonisengagedinbusiness thmughanagenhbywhatevernamewlled;

"place of supply' means the place of Supply as referted to'in ChapterVofflieIntegntedGoodsandServrcesTaxAct. 'prescribed' means prescribed by niles made undet this Act on the recomniendations ofthe Council; . 7 7 'pnnapal' means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both; A ' _

V 3

"principal place of business" means the place ,of 1 business specified as the principal place ofbusiness in the certificate of registration; '

"principal supply?" means the supply ofgoods or services which . Constitutes the predominant element of a composite supply and to which any other supply forming part ofthat composite supply is ancillary; t . , .

"proper officer" in relation'to any function tobe performed under this Act, means the. Commissioner or the officer of the

" State tax who isv'assigne'fi: that function by the'Commissioner;

"'quarter" shall meana period Comprising three consecutive calendar months, ending on the last day of March, June, September and December ofa calendar year; .

"recipient" ofsupply ofgoods or services or both, mms— -(a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration;

(b) where no consideration is payable for the supplyofgoods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is

"given or mad€'avaflablé: and '

(c) where no consideration is payable for the supply of a _ service, the person to whonfthe service is rendemd. and anyreference to a person to whom a supply is made shall be construed as a reference to the recipient ofthe supply and shall include an agent acting as Sfldlsm behalfof the recipient in relation to the goodssor seams 01' both ' supplied; ' - - - _

42 of 1956

15

(94) "registered person" means aperson who is registered under section 25 but does not include a person havinga Unique Identity Number.

(95) "regulations" incans the regulations made by the Government 3 under this Act on the recommendations ofthe Council;

(96) "removal" in relationto'gdods, means— '

(a) despatch ofthe g00ds for deIiVe-Iy by the supplier thereof or by any other person acting on behalfof 'such supplier; or

, (b) co11ection ofthe goods by the recipientthereofor by any , otherperson acting on behalf ofsuch recipient;

(97) "return" means any return prescribed or otherwise required to be furnishedby'01- underthis Act orthe rulesmadethereunder;

(98) "reverse charge? means the liabilityto pay tax by the recipient ofSupply ofgoods or services or both instead ofthe supplier of such goods or services or both under sub-section (3) or sub- section (4) ofsection 9,01' under sub-section (3) or s_ub- section

(4) ofsection 5 ofthe Integrated Goods and Services Tax Act;

(99) "Revisional Authority" means an authority appointed or 7 authoriSed under this Actfor revision of decision or orders referred to in section 108;

(100) "Schedule" means a Schedu1e appendedsto this Act; (101)"securities" shall have the same meaning as assigned to it in clause (h) ofsection 2 ofthe Securities Contracts (Regulation) Am 1956;

(102) "services" means anything other than goods; money and ' securities but includes activities relating to the use ofmoney or its conversion by cash or by any other mode, from one 1 form, currency or denomination, to another form, currencyor denomination for which a separate consideration is charged;

(103) "State" means the State ofManiput;

(104) "State tax" means the tax levied under this Act;

(105) "supplier" in relation to any goods or services or both, shall mean the person supplying the said goods or Services or both and shall include an agent acting as such on behalf of such' supplier in relation to the goods or services or both supplied;

16

(106)"taif period"means the periodfor Whichthe return isfifiuired ' ' tobé'finrmshed. 5

(107) "taxable person" means a person who'is registered orliable to

" beregisteredtmdersectxonZZorsecnonM "

\

(108) "taxable supply" means a snpply of goods or services orboth whichisleviable totaxundet-thisAct; Mg» .1

(109) "taxable temtory"means the territory to whichthe provisions ofthis Actapply: 7 cm

(110) "telecommunication service"means service ofanydescription (includingéfe'étroiiicmail. voice mail, dataservices; audidtext services, video text serfrio'es, radio pagingand cellulir mobile telephone services) which is made available to users by means of any transmissionor neceptionof sign. signals; writing, . ,- images and sounds crimefligenccofany natum'. bywire, radio, visual or other electro-magnetic means;

(11mm CentralGoodsmammaamepsthecemral'

Goods and SemcesTaxAct.2017 11 '1

(112)"we: inStateor»"himinUnionterritoty ineans the aggregate value of 2111 taxable supplies (excluding the value ofinwptd supplsesonwhidltaxmpayablebyapersonon reverse Charge basis)andexempt suppliesmade withinaState or Union territory bya taxable person,exports of goods or services or both and inter-Stete supplies ofgoods or services or both rnade from the State or L5'nion territoryby the said taxable person but exeléaes centraLtax, State tax, Union territory tam":

integtated taxand cess;

,4 e «51". CL" :_,

(I 13) "nsuat place:of- residence? ineans—

(a) in case of an individual, theplacewhere he ordinar:1y resrdes,3

"(13)::in: other cases;theplasgyherethepersonisncorporated orothemse legallyconstitnted;

17

(114) "Union territory" means _

(a) The Andaman and Nicobar Islands;

(b) Lakshadweep;

(c) Dadra and Nagsr Haveli;

(d) Daman and Diu;

(e) Chandigarh; and (0 Other territory; Explanation? For the purposes of this Act, each Of the territories specified in sub-clauses (a) to (f) shall be considered to be a separate Union territory. ' - ~ ~ ' «

(115) "Union territory tax' means the Union territory goods and servicestaxleviedundertheUnionTerritoryGoodsand9 ServicesTaxAct; ' . _

(116) "Union Territory Goods and Services Tax Act" means the Union Territory Goods and SerVices Tax Act, 2017; 9 (117) "valid return" means a return furnished under sub-section (1) ofsection 39 on which self—assessed tax has been paid in full;

(118) "voucher" means an instrument where there is an obligation to accept it as conSideration or part consideration, for a supply of goods or services and where the goods or services to be supplied or the identities oftheir potential suppliers are either indicated on the instrument itselfor in related documentation, including the terms and conditions ofuse ofsuch instrument;

(119) "works contract? means a contract for building. constniction. fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovatiOn, alteration or commissioning of any 1111movab1e property wherein ttansfer of property in g00ds is involved in the execution ofsuch contract; ' 9

(120) words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, me Central Goods and Services Tax Act, the Union Territory Goods and Services Ta9x Act and the Godds and Services Tax (Compensation to States)'Act shall have the same meanings as gssigned to them in those Acts. _ .

3.

4.

18

CHAPTER II .

ADMINISTRA'l'ION The Government shall, by notification, specify the following classes ofofliceis for the purposes ofthis Act, namely:— (a)

(b)

(C)

(d) (e) (f)

(8)

Commissioner ofState tax. Special Commissioners of State tax, Additional Commissibners of State tax, 1 Joint Commissioners ofState tax, Deputy Commissioners of State tax. Assistant Commissioners of State tax, and any othet class of officers as it may deem fit:

Provided that. the officers appointed under the Manipur Value Added Tax Act, 2004 shall be deemed to be the officers appointed under the provisions ofthis Act.

(1)

(2)

(l)

(2)

"Ihe Governmentmay, in addition to the oflicers as may be notified under section 3, appoint such persons as it may think fit to be the officers under this Act. ' The Commissioner shall' have jurisdiction over the whole of the. State, the Special Commissioner 11nd an Additional Commissioner in respect ofall or any ofthe functions assigned to them. shall have jurisdiction over the whole ofthe State or where the State Government so directs, over any local area thereof, and all other officers shall, subject to such cbnditions as may be specified, have jurisdiction over thewhole ofthe State or oversuch local areas as the Commissioner may, by order, specify. Subject to such conditions and limitations as the Commissioner may impose, an 01110:: of State tax may exercise the powers and discharge the duties oonhred or imposed on' him under this Act

"An officer of State tax may exercise the panels ad disdiarge the duties conferred or imposed under this Act on any other officer of State tax who ism to him.

Oflicers _under this Act.

Appointment ofofficers.

Panasofoficers.

18

(3)

(4)

(1)

(2)

'(3)

19

The Commissioner may, subject to such conditions and limitations as may be specified in this behalfby him, delegate his powers to any other officer subordinate to Notwithstanding anything contained in this section. an Appel1ate Authority. shall not exercise the powers and discharge the duties conferred or imposed 011 any other oflicer of State tax.

Without prejudice to the provisions of this Act. the officers appointed under the Central Goods and Services Tax Act are authorised to be'the proper oflicers for the purposes of this Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify.

Subject to the conditions specified in the notification issued under sub-section (1),—

(a) whereanypmperoficerismesanorderunderthis ActheshallaisoissueanorderundertheCentral Goods'andServicesTaxAchasauthoxised'byflie said Act under intimation to the jurisdictional officerofcentraltax;

(b) where a proper officer underthe Central Goods and Seryices Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper oflicer under this Act on the same subject matter.

Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under this Act, shall not lie before an oflicet appointed under the Central Goods and Services Tax Act.

Authorisationof

oflieersofcentnlmxas 9

properofiicerincertain

circumstances.

7. (1)

(2)

20

CHAPTER III

LEVYAND COLLECTIONOFTAX

For the purposes of this Act. the expression N'supply' includes—

(a)' all'forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental,1ease or disposal made or agreed to be made for a consideration ,by a person in the coutse or furtherance ofbusiness;

(b) import of services for a consideration whether or not in the course or furtherance ofbusiness;

(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and

(d) the activities to be treated as supply ofgoods or supply ofservices as referred to in Schedule II Notwithstanding anything contained in'sub-mtion (1),-

(a) activities orbansaeti'ons specified in Schedule III; or -

(b) such activities or transactions undertaken by the ' CentralGovemment. a State Government or any local authority'1n Which they are engaged as public authorities, as maybe notified by the Government on the recommendations ofthe Council, shall be treated neither as a supply sfgoodsnor a simply ofservices.

(3)

Subject^totheprovisions^ofsub-sections^(1)and(2), the Government may, on the recommendations of the Council, specify, by notification. the transactions that are to be treated as—-

(a) a supply ofgoods and not as a supply ofsemces; or

(b) a supply ofservices and not as a supply ofgoods.

8. The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: — (a)

'(b)

a composite supply comprising two or more supplies. one ofwhich is a principal supply, shallbetnatedasa supply ofsuch principal supply; and

a mixed supply comprising two or 111012 sonic shah be treated as a supply of that particular supply which attracts the highest rate oftax.

Scope ofsupply.

Taxiiabilityoncomposite

andmixedmliee

21

9. (1) - Subjectto the provisions of subsection (2), there shall Wand Collection- belevieida tax called the Manipurfioodsnd Saving

Tax on all intra'State' supplies of goatk 0pm or

both, except on the supply'ofalcoholic liquorhtham

consumption, on the vagnedetermined under sectim 15.

and at such rates, not exceeding twenty per cent, asmy

be notified by the Government, on the recomm \ , '

.Of the Council and collected in such manner asim'aybe

prescribed and shall be paid by the ténbl'e person.

(2) TheStatetaxon thesupplyofpetroleumcrude,highspeed diesel, motor spirit (commonlyknown asMr.natural gas and aviation turbine fuel. shall be levied with effect from such date as maybe nofified'bytheGovemment on the recommendationsoftheCouncil. '

(3) The Government may, on the recommendations of the Council, by notificatibn, speeify categories of Supply of goodsorserVieesorboth,thetuonwhichshaflbepaid on reverse charge basis'by the recipient ofsuch-goods or servicesorbothahdafltheprdvisionsofthisAdshafl apply to such recipient as if he: is the person liable for paying'the tax in relation toithe supply of such goods or services or both.

(4) TheStatetaxinrespectofthesupplyoftaxablegoodsorv services or bothbyampplier,whoisnotregistered.to a registeredpersonshallbepaidbysuchpmondhrevase chargebasis'astherecipientandalltheprovisionsofthis Act-shallapplytosuchtecipientlsifheistheperson liableforpayingdneuxinrelafionmthemmyofmdx goodsorserviceeorboth. '

(5) 'Ihe Governmeut-may, on the recommendgtionsbf the Council, by notification. specify categories of services the tax on intra-State supplies ofwhich shall be paid by , the electronic commerce operator ifsuch service: an 'suppfiedthmughitandalltheprovisionsofthism shall appl'fto such electronic commerce operator as ifhe is the supplier liable for paying the tax in'r'elation to the supply,ofsmsh services: '

Provided that where an electronic commerce operator does not have a physical presence in the. taxable territory, any person representing'sueh electronic commerce operator for my purpose in the taxable territofy shall be liable to pay tax: .

22

Prtwided further that when:an electronic commerce operator does nothaveaphysicaipmsenceindxeunfleterr'noryand he does not have a representative in the said territory; such electronic commerce operator shall appoint a person in the taxable territory for the purpose ofpaying tax and such pusofishallbeliable to pay tax.

(1) Notwithstandinganything to the conuaryeomained'm this Act but subject to the provisionsofab-sections (3) and (4) ofsection9 axegisteredpasomwhooeagregate tumoverinthe preceding finandalyelrdidnotexoeed .'3a.fifixxalmrupeemayopttopaxmneuomwmbk 'byhhn,anamountcalculatedatsuchntzeasmaybe prescribed.,but not exceeding.—

(a)

:3th

(e)

onepercentofthetumoverinStateincaseofa manufacturer,

'fioandahalfpercent-ofthetnrminStatein

caseofpersonsengagedinmakingmppliesreferred toinclause(b)ofparagraph6of$chednlelf, and halfpercent. ofthemmoverihStateincaseof othersuppliers,

subject to such conditions and restrictions as maybe prescribed:

Provided that the Government may. by'notification, increase the saidilififit'of fifiy lakh rupees to such higher amount, not exéeedingone crofe tapes, as maybe recommendedbythe Council.

(2) The registered personshall beeligible to opt under sub- section (1), if—

(a)

(C)

(d) ' '11:) he'is notengagedin the supply of services other than supplies referred to in clause (b) ofparagraph 6 ofSchedule II;

heisnot engagetlinmakinganysupply ofgoods Whicharenotleviable totaxunderthisAct; heis notengaged"m makinganyinter—State outward L supplies ofgoods;

heis not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and

heis notamanufacturerofsudtpodsasmaybe notified on the recommendations oftheCoundh , Composition levy.

4361961

23

. Provided that wheremorethan one registered person ate having the same Permanent Account Number (issued under the Inme-tax Act 1961), the registered person shall not be eligibleto opt fit the scheme under sub-section (1)unless all such registeredpmopt to pay tax under that suh-section. , t. w

. (3)

(4)

(5) '

11.

The option availed ofby a registtmd person under sub-section '(l)d1afllapsewitheffectfpomthedayonwhichhisw tumoverduringafinancialyearexceedsthelimitspeeified under sub-seetion(l).

A taxable person to whom the provisions of sub-section_ (1) apply shall not collect any tax from the recipient on supplies made byhim nor shall he be entitled to any creditofinput tax. Ifthe proper officer has reasous to believe that a taxable person has paid tax under sub-section(1) despite not being eligible, 'suchpersonshall, inadditiontoanytaxthatmaybepayable by him under any other provisions ofthis Act, be liable to a penalty and the' provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination oftax and penalty.

(1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally either absolutely or subject to such conditions as maybe specified therein, goods or services or both of any specified description from the whole or anypartofthetaxleviablethereonwitheffectfi'omsuch date as may be specified in such notification. '

(2) WheretheGomnmtissafiMthatitkmy' hithepubhcmtuwwmdqhmyonthe recommendations of the Council, by special order in 'eechCasqunderciremcesofanexeeptionalnamre tobestatedinmchorder,exemptfrompaymentoftax anygoodsorservicesorbothonwhichtaxisleviable.

(3) 'lhe Government may, if it considers necessary or expedientsotodofor the purpose ofclarifying the scope . or applicability of any ndtification issued under sub— section (1) or order issued under sub-section (2). insult an explanation in such notification or order. as the use ~ may be. by notification at any time within one year of issue of the notification'under su'b-section (l) or order under sub-section (2), and every such explanation shall haveefi'ectasifithadalwaysbeenthepartofthefirst such notification or order, as the case may be. Powertograntexunption

fi'omtu.

24

(4) Any notification issued by the Central Government, on ' .. themcdmmmdatbnsoftheCoundLundersub-section ' ' (1) ofsectionllorordflismedunderaab-section (2)01"

thesaidsection'oftheCennalGoodsandServicesTaX/ Act shallbe deemedtobeanotifimtionornsthe case may be, an order issued under this Act. Explanation:—For the purposes of thissection. where an exemption in respect ofanygoods or services orbothfmmfliewholeorpart of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess ofthe effective rate, on such supply ofgoods or services or both. '

25

CHAPTER IV

TIMEANDVALUE OFSUPPLY

-----

supplyasiieterminedintetms oftheptovisionsofthis section.

12, (l) Thehabflitytopaytaxongoodsshallanseattheumeof

(2) 'lhetimeofsupplyofgoodsslmllbetheeadierofthe foflowiii'gdateanamelyv

(a) thedateOfissueofinvoieebythesuppIierorthelast 'dateonwhidiheisrequired, undersection3i,to issuethe invoicewithrespectto the supply, or , (b) thedateonwhiehthe applianceivesthepayment ~ withrespecttothesupply:

Providedthatwherethe suppheroftaxablegoodsreoeivesan amountuptoonethousandrupeesmexcessoftheamomindm in thetaxinvoiee, the time ofsupplyto theextentofsuchests amount shall, at the option ofthe said supplier, bethedate ofissueof inVoiceinrespeetofsuch excess" amount. ,

Explanation 1.— For the purposes of clauses (a) aiid(b). 'snpply"

shallbedeemedtohavebeenmadetotheextentitiscoveredbythe invoice or,asthecasemaybe, the payment.

Explanation 2.~ For the purposes of clause (b), "the date on which the supplier receives the payment" shall be the date on which the paymentisenteredinhisbooksofaccount orthedateonwhichthe paymentiscreditedtohisbankaccounhwhicheveriseaflier.

(3) Incaseofmpphesmrespectofwmchtaxupaidorhable tobepaidonrevetsechatgebwathettmeofmpply shaflbetheearhestofthefojlomngdatesmmdr—

(a) the date ofthe receiptofgoods. or

(b) thedateofpaymentasisentezedinthebooksof account of the recipient or the date on which the paymehtis debitedinhis bank aceount, whichever ' is earlier; or .

,(c) thedateimmediatelyfoliowingthirtydaysfi'om the date of issue ofinvoice or any other document. by whatever name called, in lieu thereofby the when

Providedthatth it'is notpossibleto determine the time of supphrunderdausetahdause (b)orclause(c), thetirneofsupply shallbethedateofentrymthebooksofacconntofthereupientof supply

'I'imeofsuppiyofgoods.

(4)

26

Incaseofsiipplyofvnndlusbyaqplhthefimeof supplyshallbe— . ,

(a) the dateofisundechaifthesupplyis identifiable at thatpain;a 1 _(b) "the date ormamm another

(5)

(6)

l3. (1)

(2)

cases. Whereitisnotpofiblemdmtbtineofupply under the. provisions of subfsedilll(2M(3) or sub—section (4), thetimeoquiyjal—

(a) inacasewhereapefiodicdmhsbbefild .bethedateonwhichsuchmisbheMtr

(b) inanyothercasebethedauondlidifllemis paid. '

'Dietimeofsupplyto.theextentitreh;smaaddiin mthevalueofmpplybywayofmbfieor

penalty for delayed payment of anyconsiderdim shall bethedateonwhichthesupplierreeeivesadudmn invalue;

Theliabilitytopaytaxon servicesslnllaxiaeatthetime ofsupplygasdeterminedintermsofthepewiionsof this section.

The time ofsiipply ofservices Shallbetheeadbtd'flle following dates, namely:-

(a) the date ofi's'siieOf'invoicebythesupplieLKthe invoioeisissuedwithintheperiodprescribednndet sub-seCti'on (2)"of section 31.,or the date of reoe'gt ofpayment; whichever is earlier; or

(b) thedateofprofisionofserviceiftheinvoiceisnot issued within the period prescribed under sub- section(2)ofsection 31 orthedateofreceiptof payment, wineheverisearhermr

(c) the date on whichtherecipientshowsthereceiptof servicesinhfsbooksofaccburmmaasewherethe provisions ofclause (a) orclause (b)donotappiy:

Provided that where the supplier oftaxable service receives an amount upto one thousand rupees in excess ofthe amount indicated inthetaxinvoiee,dietimeofsupplytotheextentofsufliemas amountshalhatflieoptionofthesaidsupplimbefliedateofiasue of invoice relating to such excess amount.

Explanation :- For the purposes ofclauses (a) and (b)- § w

'thesupplyshallbed'eemedtohivebeenmidemflle extentitiscovfiedbflheinvoiceormsflteaéemybe, thepayment; ' ' '

Trmeofsuyplyof

27

(ii) "the date , of receipt of payment" shah :he the date on whichthe payment is entered in thebooks ofaccount of the supplier or the date on which thepayment is credited to his bank account, whichever is earlier. .

(3) In case ofsupplies in respect ofwhich tax is paid othable to be paid on reverse charge basis, the time ofsupply shall be the earlier ofthe following dates, namely:— a, A

(a) the date ofpayment as entered in the books ofaccount of the recipient or the date on which thepayment is debited in his bank account, whichever is earlier; or

(b) the date immediately following sixty days from the date , of issue of invoice or any other document. by whatever name called,in lien thereofby the supplier:

mmmmmaafimmmmsm

of supply under clause-(a) ordause (b), the time ofsupplyshall be the dateofentryinthebooksofawauntoftheredpimofnpply:

Provided further .'that' in case of supply by assodated enterprises, where the supplier of service is located outside India, the time ofsupply shall be the date ofentry in the books ofaccount ofthe recipient ofsupplyor the dateofpayment, whichever is earlier.

(4) In case ofsupply ofVouchers, by a supplier, the tiine ofsupply shall bg— I . . -

(a) the date ofissue ofvoucher, ifthe supply is identifiable at that point; or

(b) thedateoftedemption ofvoucher, in allothercases;

(5) Whereitisnotpossibletodeterminethetimeofsupplyof services in themannerspeeifiedin sub-section (2), subsection

(3) or sub-section (4). the timeofsupply shall— (a)' inacasewhereaperiodicalreturnhastobefiMbethe , date onwhich suchtemmistobe-filedior

(b) inanyothermsebethedateonwhichthetaxispaid.

(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which thesupplies receives such addition in'value.' l4. Notwithstanding anything contained in section 12 orsection 13, the timeofsupplygw'here thereisachangein therateoftax in respect ofgoods or services or both, shall be determined in the following manner. namelyz- -

(a) incasethegoodsorservicesorbothhavebeensupplied beforethechangeinrate oftan— . '

Changeinnteoftu

inmspectofsupplyof

goodsorseryicea.

28

(i) wheretheinvoice for the samehasbeenissued and «thepaymentisalso receivedatterthe changein rate often the time of supply shall b'e'the date of receipt of payment or the date 'of issue of invoice, whicheveriseadierwr

(ii) where the invoice has been issued prior to the dnngeinrateoftaxbutpaymentisreceivedafter thednngeinrateoftanthetimeofsupplyshallbe thedieofissue ofinvoice; or

(iii) vduethepaymenthasbeenreceivedbeforethe mmrateoftagbuttheinvoiceforthesame isismedafierthechangeinrateoftanthetimeof suwlyshallbethedateofreceiptofpayment;

(b) inasethegobdsorservicesorbothhavebeensupplied d'uthediangeinrateoftan— ,

(i) wherethepaymentisreoeivedafterthediangein rateoftaxbuttheinvoicehasbeenissuedpriorto thednngeinrateoftaxthetimedsupplystnllbe

"thedded'teoe'qtofpaymeImG ' 5.x. (wwwinvoieehsbeenismedmdpaymentis - receivedbeixethedmgefinmtedmfietime ofsupplyshallbethedateofreceiptofpaymetfior _ m.t-dateofissueofinvoicewhidieveriseuhe'nor

(iii) where the invoicehasbeenissnedafterthechange inrateoftaxbutthepaymentisxeoeivedbeforeflie changemrateoftaxthetimeofsupplyshall'beflie date ofissue of invoice: '

Provided that the date ofreceipt ofpayment shall be the date of credit in the bank account if such crediti'in the bank'éaccount is - after four working days from the date éfchange in the rate oftax. Explanation:- For the purposes fit"this section; "the due ofreceipt of payment'shafl be the date on which the payment is entered in the books of accounts ofthe supplier or the date on which the payment is credited to tits bank accounts whichever is earlier.

15. (1) The value ofa supply ofgoods or services or both shall Vdueofmbk WPPIY. be the transaction value, which is the price actually paid _ or payable for the said supply of goods or services or :_ both-where the supplier and the recipient ofthe supply are not related and'the price isthe sole consideration for the supply. . 5 '

(2) The value of supply shall include-

29

(a) any taxes, duties,- cesses, fees and chaps levied underanylawforthetime'beinginforceotherthan this AettheCen'tral GoodsandServieesTuAet and the Goods and Services Tax (Compemation to States) Act. ifcharged separatelybythesupplier; y (b) any amount that the supplier is liable to payin 4 ' 5 relauantosxfisnppiybutwlhehhasbeenmeuned by the reelplentgofthe supply and not includedin the price actuallypaid or payable foi' the goods or - *: services or both; 2e

' (c) ' incidental w ", including comriiission and packing, charged by' the supplies to the recipient .ofasupplyanyammmtcharged forahythingdone by the supplierin respect ofthe supply ofgoods or services or both atthe time of, orbeforedelivery of goods or supply ofservices;

.(d) interest or laefee or penalty for delayed payment ofany consideration for any supply; and

(e) subsidies directly hnked to the price excluding subsidies providedbythe Central Government and State Governments. , '

Explanation:-F0r the purpOSes ofthis sub--section. theamount of subsidy shall be inclhdedin the value 'of supplyofthesupplies who receives the subsidy.

(3)

(4)

(5)

The value ofthe supply shall not include any discount which is given— _ .

(a) before or at the time of the supply if such discount has been dulyrecorded in the invoice issued 'm respect of such supply; and -

(b) after the wpptyhaahoen efl'ected, if-

(i) such discount is established in terms of an agreemententeredintoatorbeforethetimeofsuch and

(ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed bythe recipient ofthe supply. Wherethevalueofthesupplyofgoodsorservicesotboth cannot be determined under sub-section (1), the sameshdl be determined in such manner as maybe prescribed. Notwithstanding anything contained in sub-section (1) or sub—section (4). the value of such supplies as may be notified by the Government on the recommendations of the Council shallbedeterminedinsuchmannerasmaybepresa'ibed.

30

Explanatton- For theW d"All;-

'persanShaubedmdtoh ie'

I I f-

(a)

(b)

(a

i-.

F:

vii. such'persons are ofic'en o: «bani- .mha's _ businesses;

such persons are eniisloyer andflip:

any persondirecflyorinlflredlynubcuds twenty five per centormotedthflwfing L, stockor shares ofboth ofthem; one ofthem directiyorhi'directlyen—ltiedhn; both ofthem are direetlyormm». third person;

together they directly orindirecflyculdatflllpm Ol' :- :7

viii. they are members'ofthe same firmly; A the term "person? also includes legal persons. - persons who'are associatedinthebusinesofo-e-nths in that one is the sole'agentor sole am «- ode concessionaire, howsoever described, of the hflur.H be deemedtoberelated.

31

WV

INPUTTAXCREDIT

l6. (1) Everymguteredpersonshakwbjecttosuch'm andresmctxonsasmaybepmcribedmdmthem specifiedmsectton49.beentitledtomkecreditofinput taxchargedonanysupplyofgoodsorservicesorbothm himwhichareusedormtendedtobeusedinfliecourse orftmheranceofhisbusinessandthesaidamountshall '.becreditedtotheelectmniccfeditledgerofsuchperson. '(2) Notwithstanding anything containedinthis section, no personshanbeenufledtothecreditofany '

mputminrespectofanympplyofgoodsormcesor

bothtohimunless,— ,

(a) heisinpossessionofataxinvoiceordebitnote issued by 'a'wpplicr registered under this Act. ormchdthertaxpayingdocumentsasmeybe

(b) hehssreceivedthegoodsorservicesomboth. Explanationr—-Forthepurpos'eof'this'daune,it~sinfl-bedeemedthat flieregisteredpersonhasmemdflsegoodswherefliegoodsare deliveredbythesnpphettoarecipientoranyotherpersononthe dimcfionofsudireglstemdpemomwheflieracfingasanagcntor' othemisqbefoxeordufingmovementofgoodseitherbywayof transfer ofdocuments oftitle to goods or otherwise;

(c) subject to the provisiom-of section 41, the tax dmgedinrespectofwchwpplyhasbeenachnfly psidtotheGovernmenLfiberinMOt-thsough mammmmmm -

ofthesddlupplyssnd _ _

. '(d) hebasfiimishedthetetumfiudersectidiiflt' vaidedthstwhuemegoodsagsinstaninvoicearereceived mlouorinsullmmmflnregimdpersonsimnheenfifledtomke credituponreceiptofdlelastlotorihmument:

vaidedfiirflierthstwherearecipientfailstopaymthe supplierofgmdsorservices-m'both, otherthanthempplieson whichtaxispaysbleonreversechargebashtheamounttowards tbevalue ofsupplyalongwitbtaxpayablether'eonwithinaperiod ofonehundredanddghiydeysfi'omfltedateofissueofinvoiceby thesupplier, anamounteqtnltotheinputmcreditsvsfledbythe mpmntshanbeaddedmhhmnpnmflsflimdongwnhmtemt thmominsuchmannerasmsybeprescribed: .

mildwndifiom

hHI-riwm

436E1961' L, - 17.

32

Provided also that the recipient shall beallied toad ofthe credit of input tax on payment made-bylimit"wards the value of supply of . goods or services oi bah h! wih tn payable thereon.

(3)

(4):;

. seeds onservices orbothafterduedaeofinihqcf (l)

5 shall not be allowed.

Where theregisteredpgsanlnschndhmm thetaxcompenent 9fthe cost qfcqfldpoballpan and machinery underthepmviflmdfiem Act. 1961. the inputtaxaéaitqpfiudpm Areglistered person shallnotbeent'gledwq'tu credit in respect ofany invoice or debitnochqflyd' the return éuhder Section g9 for the moiihd'Sqdrx following the" trait of fifiancial tear to. -Ihid- ad! inv'dice' 6r ii'fi'roice relatingto sfichdebit netprimor furnishing of the relevant annual return. vrlidsaer '3 earlier. ' ' ' » '

Where the} goods or serine's or both are used by the registered person partly for the purpose ofanym:

and'paxflyz-fot other purposes, the amount d'credi dual _ be restrictedvto so much ofthe. input tax as ism 'to the Pm"? ofhis business.

(2) Where the gdods 0r services or both are used In the registered person partly for efl'ecting usable stub including zero-rated supplies under this Act or mder the Integrat'e'd'Goods and Services Tax Act and path for effecting, amph-supplies under the suit! Am the ' amount ofiexeditelfili be restricted to so much cfthe

(3)

(4)

,- inputtax as is attributable to-the said taxable studies ; including zero-rateq supplies.

The value of@th supply under subsection (2), shall be such as may be prescribed, and Shall induk snafu:

on whi'éhé'flieirecipient is liable to pay tn onm charge basis, transacflonsinsecufifiessaleofhndad. ' subject'to clause (is) ofparagraph 5 ofScheditle II, saled building; ' '

A'hanking company or a financial institutionWig afionrhagkmsfinanciai company.§nsae=d inmine services byWay ofaecepting deposits. extendingloam or advances shalI have the option to githeg eqmply with the provisighs 6f sub-section (2), o'r'hvai'l of, every ninth, f an amotmt equal to Wine? cent. '0me eligible inputtax credit on inputék ital goods'andinfihtséivicesindnt month and the " ' f " "'gha'H-'lap'se: 1:13

4,

Apportionment of credit and blocked credits.

32

33

- ' 'f i375"? a; ' , Provided that the optiononceenergised shall notbewithdrawnduring the remaining partrofthe financial year:

.'j Provided furtherthat thegggggtion of fifty percent shall notapply to the tax paid on supplieg. mgde by one registered person tpiapother regiStereélppersoh havpg the same Permanent Account"Number. ' ' m ' '

(5) NotWithstanding anything contained in sub—section (1) of section 16 and sub~section (1) of section 18, input tax-

" credit shall nOt be available in'respect of the following, namely:-

(a) motor vehicles'ignth'tither conveyances except when they are used—

(i) for making the followmg' taxable supplies,l .__

(A) furthe'rsupply of sud: vehicles or comyancagm'

(B) fianspomfion7 013mm""or ' (C) mgmt ,mimng 0" driving, , flyingnavxgatmg .,§uch vehicles or conveyances; '

(ii) for hanqurtation ofgoads;

(b) , the following supply ofgbods or services or both:-

_ (i) food and x: beverages, ,outdoor catering, beauty treatment, health services, cosmetic and plasticrsiu'gerx except where. an inWard supply of goods of services or both bf a particular, ,étegory is used, by '4? resisteredperson formakmgan outWard taxable supply of the same category of goods of services for

both or asan element ofa taxable composite

or mixed Supply; - -

_ (ii) member'ship pf a club, health and fitness

V centre; ..»

(C)- .plantandmaehmery) exceptwhereitisaninput (d)

34

(iii) rent-a-cab,1ife inmrance and health - msuranceexceptwhm-

(A) tli'e'Gd'yemme'nt nmifls the services whichareobligatoryfilranemployerto * pféfidetoftsemployeuunderanylaw

"fdrfliehmebemgmfixuqor 1

"E(B) 'suchmwardsupplyofgoodsorm orbothofapartiwlarcategqryisused by a registered person for mking an ' :'outward taxable supply. ofthe same

"Vcategoryofggodsorservicescrbothor aspartofataxableeoinpositeormixed .snupplxsandfi

(iv) teaveltrbenefite extended to employees on vacatien such as leave or home travel concessions .

works contract services when studied for 'constructionofanimmovable property (other than t,»

service for fiitthersupply ofworks contract service; goods,at sefwoes or both received by a taxable person for construction ofan immovable property (otherthan plant ormachinery) on hisownaccount including when such goods or services or both are ?;nsedinthecourse of furtherance ofbusiness Explanation:~For the purposes(ifclauses(c) and (d), the expression construction" includes reconstruction, renovation, or alteratiohs or repairs, to theextent ofcapitalization, to the said immovable property; ' ,, .,,

Lie)

(0

(s) (h) (i) geods or" giants, both on"which tax has been paid under sectionlO;

goods or services 61'bbth receivedbyanon—resident taxable person except on goods importedby him; goods or services or both used for personal consumption; '

gobds lost, stolen, destroyed, writtenotterdisposed ofby way of gift or free samples; and any tax paid in terms ofsections 74. 129 and 130.

(6) The Government may prescribe the manner in whidi the credit referred toin sub-sections (1) and (2)maybe attributed.

34

35

Explanationk For thePWatthis Chapterand ChapterVI, the expression "plantand machinery meansappamtus, equipment, and machinery fixed to earth byfoundation or structural support that are used for making outward supply ofgoods or services or both and includes such foundationand struemr'alsupports but excludes- ' ,

(i) land,buifdmgoranyothercivilstructures,

(ii) telecommunication towers; and , .

(iii) pipelines laid outside thefactorypremises. e

(1)subjecttosuch conditionsandrestrictions as may" be 'pIeseribede -

V' V siziix'r

(a) a person:who hasapplied forregistiation under thisActwithinth'n'tydaysfrom'thedateonwhich he becomes liable to registratiOn and has been grantedsuchregistrationshallbeemitledtotake creditofinpmtaxinrespectofinpmhddinstock _ mdmpmscmnmrimmfinflwdam ':

' ' hmmwhflihebeoomeshable

tnpaytaxundeethepmvmonsofthism »

ib) a 9618011 Whotakes xegistratidn undensub-uetion ' x , -:(3) ofseetionzsshallbeEenfifledtotakecreditof' ., puttaxinrgsxtpctofmputsheldinstockand' .1-inputsoontamed-iasemi-finishedorfinishedgoods t. gheldinstockgnthe dayimmediatelyprecedmgthe M: 3 date of-grant ofregistration, :,

(c) where any registered person ceases to pay tax - " undersection 10, he shall be entitled to takepmdit :ofmputtaxmrespectofmputsbeldmstock.

inputs contained in semi-finished or finished goods held'in stock and on mpital goods on the 9 dayunmediatelyprecedmgfliedatefromwhichhe '1 becomesliable topaytaxtinder section 9:

Provi (ed that the credit on capital oods shall be reduced by such percen e pointsas Inay be prescribed,"s;

(d) wherefianExemptsupplyofgpods n; seryicesor

. both by a gegstered peglpnhewmes a taxable

. ,. nippjy,suchperson shall 'entitled to takecredit

,,,,,

' ' inputs contained'insemi-fimshedorfinished goods 'held'in stock relatable to such exempt supply and onespitaigendsexdusiveiyusedforsuchexemm ,supply onthe day immediately precedingthe date ' . . Ad , from whichsuchsnpglybedomestaxablez, Availabilityofcreditin

spedalcixtumsm

36

,, Provided that the ctetIit-bnWsunbe rednwd by , such percentage points as maybeptficflbed- , .(2)_

'(3)

(4)

A registered peison 'shallnotbe entitledto at:w tax credit under sub-section (1)in respect ofayguiyofgoods orservicesorbothtohimaftertheexplryrmeyarfmmthe date ofissue oftax invoice relatingto" " supply. Where there is a change in the constitution of a registered person on accouht of sale. merger, demerger, umlgmfltion, lease or transfer ofthe business with thespecific pnw'siom fix transfer ofliabilities, the said registered person shallbeallowed to transfer themput tax credit which mains unutilised in ' his electroniccredit ledger to such sold. merged, mud, amalgamated,- leased or transferred businessm sud: unmet as may be prescribed.- .

Ii

'Where any registered personwhohas availedofinputtaxcredit optsto pay tax under sectiOn10 of, Where the goods orservices I 'orboth supplied by him becomeexempt absolutely, he slnll pay an amount, by way of debit iiithe electr'oiiic credit ledger or electmnic cash ledger, equivalent to the credit ofinput tax in respect ofinputs heldin stockand inputs containedin semi- finished or finished goods held in stock and on capital goods. reduced by such per cent points as may be prescribed, on .- the day immediately preceding the date if exercising of such option or, as the case may be,-the date ofsuch exemption:

Prefided that'afte'r'payment ofsuch amount; the balance of inputtaxcredit, if any, lyingmhis eleetmnic credit ledger shall lapse.

(5) The amount of credit undersub--se¢tion (1) and the amount

(6)

payable under sub-sectioh{4) shall be calculated in such manner as may be prescribed. '

In case of supply ofcapitalgoods orpIant and machmery, on which input tax credit hasbeen taken, the registered person shall pay an amount equal to the input tax credit taken on ' the said capital goodsorplant andmadnnery reduced by such percentage pomtsas maybefirescnbedor the tax on the : transaction valiieofsuch capitalgoods orplantandmachinery determined undersectiqnls whicheverIS higher. Pmded that whererefractoryxbmks,moulds and dies,)igs and fixturéi are supplied as scrap, the taxableperson may pay tax on the transaetion value ofsuéh goOdsdeterim'iiedunder sectionlS.

l9. ('1) ; <22

_ credit oninputs sent to a job-worker for job-wonk. ? '37

'Ihe principal shallf subject 7 to V suehjcondmohs find restrictions as may be prescribé'ii, behiféwedinfilt tax ' )

NewsStandmganythngfita'ifiédmdafigéfilfl" section (2) ofsection 16,thepmicgralshall beieiittified tn take credit of inputtax on' inputs iijif the inputs are'3 directly sent to a job Worker for onfLWéifk withbut'being

(3)

_ first brought to his place ofbusiness. Where the ifiputssent' for job Work are not received back by the Brincipa'l after completion of'job-wozk or 1 otherwise or are notsuppliegi from the place of business of"the job worker in accofdaiice with clause (a) or clause (b)of sqb-section (i) of section 14.3 within me year of being sent but, it shall be deemed that'such innit; had been supplied by'the principal to the job-worker on the 5-daywhen the saifl'inputswm sent out: ' 2 Provided that where the inputs are sefit'direcflyito a'job 'wOrker, theperio'a ofone year shall beimmmd frbitiithe dhte of A receipt ofinputs byt'the job wbrkét». ' - J ' ' (4)_

5'33: ' '

The principal shall, subject to such eohditions and 'iestrictions as may be prescribed, be alloyiEd input tax 'if Credit on capital goods sent to a jobWorker forjob work.

(5)

.{fiétéiihmdmganyflmm'"gmmin clause (b) ofsub- section (2) .of seqh'on 16, the principalshall be entitled to take credit of input tax on capital goods even if the Lcapital goods are directlyfiént to a job werker for "job-

. ; Work withoutbeingfirstbfbughftdhisplaée ofbusiness. (6);"

Provided that where the capital goods are sent directly tga job worker, the period of' thxee years shall be counted from the 32m of ' Where the capital goods sent for' job work are not received bad: by the principal within a period ofthree years of being sent out!» it shall ,beideemedtthat such .ymcapital goods had beemsupplied by the principal to the _ job worker on the day when the said capital goods were sent out: j . _ '

receipt ofcapital goods by the job worker;

(71"; ^.Nothlng tcpn'tained- in.sub-section;l(3)g9£§§::h;:se¢:tion (6) shall apply to hxpuldsgandiciies,rjigs aiidfixtures, or tools sent out to a job wbrkei' for job whirls~

Taking input tax credit in

respect ofinputs sent for

job work.

37

38

EsplanationejFor the purpose of this section, "principal" means the flyerson referfed to in section 143. '

20. (l) The InputSavioeDistfilmmrshall distribute thecredit Mnnncrofdistribinion ofsentenxammamaedmandhmgmed ofcreditbylnpfltSerVice

'mxamdpxqmmbymyofimeof MW

documat the amount ofiqlut in credit

beingdisuiudh-chmasmybelxacfibed.

(2) mmmmmmgm

. mmflnmmuflr— {1) the cedit an be distinct] to the reapienfs of '- -' qeditwa(ham«mining such details » - asmlybe

I(bI) theamumdtheaeditdmhmddiaglnmqmed ; theamonfitofqeditavaihblefordistnbuiion;

(c) the creditoftaxpoidoniqmtserviceuttributable to arecipientofaeditshallbedistributedonlyto thatrecipient; a

(d) thecredit oftaxpmdonmputservmatm'butahk tomorethanoneredpientofaeditslallbe distributed amongst such recipients to whom the input service is attributable and such distribution

. shallbepro rata on thebasisofthetumovetinaState ' or turnover in a Union territOry of such geapient, during the relevant period, to the aggregate of the turnover ofall such recipients to whom such input service is amibtitab'le'and which are operational in -~ the current year, during the said relevant period; I

(e) 'thIIe'I'credit of tax paid on input services attributable \ to' all recipients of 'credit shall be distributed amongst such recipients and such distribution 'Shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient"

dming the relevant period, to the aggrbgate of the turnover ofall recipients and which are operatic'mal in the cuttent year, during the said releyant period. Explanation:-For the purposes ofthis section,— (a_i ' the "relevaat period"shall beI-I

(i) if the recipients ofcredit have turnover in their States 01' Union territories in the financial year preceiiihg theyear during which credit"is to be distributefithesm&financ1alyearor ' " '

~21.

39

(ii) if some or all reupiehts of the credit do'not have any nunovei-f'ili theirSmtes or Unibn tem'tories in ; v the financial year preceding the year during which the credit is to be distributed. thelastguarter for _,I (I Whichdetaflsofsitehtgenoveeofalltheredpients ' ' are available, prefiii'usto the month during which ,éreditstobe'dissms

(b) the expression "ieeipient oig eredit' means the supplier ofgoods or services or_both havingthe same Permanent ' Account Numbeeasthatofthe Input Service Distributor;

3

(c) - the terin 'tumowr' *ih'a'ehttion t6 any'registered person engaged in the supply of taxable goods as well as goods ' not taxable under this Act, means value of turnover, reduced by-rthe' amount'bf any duty orltax levied underent'ryuofljstlofthe'SeventhSdieduletothe ConsfinmonandalrySIandfloffistnofdaedd

Schedule.

mmmfim" toms;- m4m-mzo: u ,. fl , awmefor me

recipients ofaedit.'" ' themes:' creditQSWj ' " shall be recovered from such recipients along with. interest, and 'the provisions ofsection 73 or section 74, as the case maybe; shall mutatis mutandis apply for determination of amount to be feqoveted; I

lhnerofzeeovuyof

aeditd'ltflnmdin

39

'22. (1)

40

~ CHARTER: Y1 Inssmttsnon IIsS

Every supphermalngga'taxablesuppiy d pods or services oi'both mtheStateshallbehabletobenylued under this Act ifhis aggregate turnover in a Em! year exceeds twentylakh rupees:

Provided that where such person snakes taxable supplies of goodsor servicesorboth from anyofthe specialcategotysmhe shall be liable to beregistered 1£hs§3aggregateturnpvet inn lingual yearexegedstenlalthmpees. <2

Eyerympphetmaking ktaxable supply ofgoodsor services or bothfmfltheState,shallbehabh to be :egistered under this Act ifhis aggregateturnover in a finaneialyeuexceeds ten lakh rupees. '

(I2)

(4)

Every person who, on the day immediately preceding a the appointed daysregistered or holds a license under anezdstinglaw, shaHbeliabletoberegisteredundea'this Actwith effect from the appointedday.

'Whereabusmesscamedonbyataxablepason

mg'SteRdunderthisActisuansferreiwheflieton account of succession or otherwise, to another person as a going concern, the transferee or the successor. as the case may be, shall be liable to be registered with effect from the date ofsuch transfer or succession. Notwithstanding anything contained in sub-sectiom

(1) and_(3),.in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamationflor, as ' the case may be. de—merger of two 0: morecompanies pursuant to an order of a High Court. Tribunal or otherwise, the transferee shall be liable to be registered. with effect from the. date on which the Registrar of Companies issues a certificate of incdrporation giving ' effect to such order ofthe High Court.

Explanation:—For the purposes of this section,— (i)

(ii)

the expression aggregate turnbver shall include all 7 supplies made by the taxable person, whether on his own account or made on behalfofall his principals; the supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of ' goods by the principal referred to in section 143, and the value .of such goods shall not be included in the aggregate turnover of the'registered job worker. Persons liable for

registration.

OnlyinSGSTIzwfor

specialcategoryStates

wiinnthepmviso

40

41,

(iii) ^are

expression

Whetégory

States"

shall ^meanthe '

1'»;

Sumsasspeafiedinfinhvddusewofdauseflhfamde :ff

*^'279Aoftfieconstimr§n

'7 (l)

Thefiifirmngpersqnsshallnothehahfetoregistran

Perm-milleh namely:-

1:43;

(a)

anyperson '

inthebusinessof alpplyinggmdsprservicesorboththatarenot. liablétotaxorsvhollyexerpptfromtaxunderthis Act or

under the

Integrated Goods

and

Services TaxAct; ^. '

1:39;": ^(h)anagriculturist ^t6thextentofsupplyof'f' ^'' ornofcdtivatron ofland.

(2) ^The

Government may,

on

the recommendations of the Whymdfiammspeafydieategoryofpemm whomaybeexemptedfrunobmmmgreglstrationunder thisAct.

311K3251'

31':

'

MW

in

sub—section (1) of. Compulsoryregistration

"CHOP 32-4119 Mowhgmonesotpmlndemhng

inceminensu.^. taxablesupphesshallberequrredtoberegrsteredunderthis ^V Acn-

.

(i)

persommlunganyinterStatemahlesupply- (it)

casualtuabiepersonw ^%i (iii)

personswhoaterequiredtopaytaxunfierreversecharge, '

(iv) person^whoare

requn'edto

pay tax

under

subsection

(5)

~ ofscctionfi:

a ^,

x

(v)

non'mident

taxable persons; ^'».^' (vi)

personswhoarerequrredtodeducttaxundersecuonSI whetherornotseparatelyregisteredunderthrsAct; ^,

,:.

(vii) personswhosupplygoodsorservrcesorhothonhehalfof

,

othertaxahlepersonswhetherasanagentorotherwrse, (viii)

input

servicem Whether or

not

separatelyWunderthisAct:

- (he)

penohswhosupplygoodsorservrcesorhath

other than

supplies

specified

under

sub-sectic'm

(S)

of section

9,

through ^such

electronic commerce

operator who

is; reqhiredtocollecttaxatsource

under section ⁵² '

Wk) everyelectronrccommerce operator,

,

(xi) every person

supplying

online information and data hase accessor

servicesfmmaplnceoutsidelndtatoa personm

otliuthmaregrsteredpusomand _,» (nflsuchotherpepqnorclmofpersonsasmeybenonfied ^:. by ^the1,} ^,thermommendationsofthe

Council

" "

' 43 ofl961

4.2

25.

(3133 3.333Ever; Pfif§9§ MIDAS

liable

to be

regsteredghdel; section ,3; ^33.2.20;;

section

243.5%",

finreglstrahen

within thirty days ^fr6mthe 3on3which

he;bee'pmes

liable

,

to

registration. in ad

mannaand3 subJect to

such conditioh'a^as

may$1er '

II 0

3f; :1! Previ6%d ^thatacas'ual

I

or 'a non-resident taxableéfierson shall apply ^{for re} '

the

connnencementofbdsfiess

I

33 ^{: f.} mawéemnwhomakesawp

lggrplnthetantenal tamregstgationm

tatewhaethemrest point ^ofthe

appropriate baseline ls Iocat

in

the

State. .^.in:^~

in.m t2' ⁴

a ~ arms

(2) ^A

{lessensedan?

' ^'"

grantedasfigk"°i'" ^{3 3}

(3)

Provided^{that a}person

havingmultiple business vatialls indieState

maybegranteéas use ^for eachbflsinesswrtieal maefitflsfiEheo

%may ii?

be prescfibgd. ifs-"£2.53 432.;

3

(3)

Aperson,thouglinotliabletoberegisteredundasection 22 of semen:²⁴

may gethimsdf tegmered voluntarily, and

allprovisions

ofthisAet.35me ^a registered

person,

shall

apply ^to

such ^_,

L—rK-'flfl"

(4)" '-:'Aperson^who

hasohtamedoris

reqmredtoobtam ^more than ^one

registration,

whether

inbile

State ^orUnion '

Territory ^{ormore thanone,}

Shalom

Union memory

shall,

,3

in

respect efeaeh

suehreglstrgtien, betreatedas

distinct persons

for

thepurposes"it!"Aet. ('5)'

Where ^aperson Whohas'oeta'fnea^6fis

retjulrefl to obtain

I

, registration

in a State

or Union territory ill

reaped

ofan j establishment, haSaniesfilflirmntⁱⁿ

another

State ^or '

'

Union

territory,

then such establishmentsshall be treated

..

asestablishments of

distinet persons fondle purposes of

this

Act. ^,,.

5-317 ^E35:

(6)

Every personshall

have^aPermanent

Apeeunt

Number issued under ^theIncome—tax

Act,

1961 in order3 to be

a?"eligible

for

grantoih'eglstrafi thatap ^so'n

qulfd eduitt'afi'underseetlon Slmay have.I in Iieu to?"^a

PermanentAccountL fiufia, ^aTax Deductréh^and

(Selleetion fieeomt'i'lifinhel'"

"

' ~

I

Act'ⁱⁿ

ordei'

febe eligible

for gt'aIilt of

Iégigfiafld

I

I 'j 9,; «viL10») Procedure ^for _

Registration. ³

6 (I1947

5'43

#3

my; irfils

(7) thwithstandin anything 3

{3113sz -section (6), anon-resi^{ent ,}

grain maybe,

granted' registration under

Sigh-section(1)911 itheybasis ^{of such} other ociimentsaas may be preset:bed.

7.

(8L^Mgr;apersonwhen

liable togbegegistexed

under

thist;

43

(2)

Notwithstandinganything

contained'un

sub-section

(10)

ofsection Zfi'anx rejectuon ofapplication

for

registration' ortheUnuqufldentityNumberundertheCentralGoods andSsvicesTaxActshallbedeenuedfobearqecuonof application ^for

re'iustfatzan

unilerthis^Act.

(I)

'Iheosnfieiteofregustration ussuetlbamhlhnhle person ^ora

non—resident taxablepershnihalbevahd -forapsuodspeefieduntheapplicauoui firregisinfion arninetydays

from

theeflbctivedate'ofrefiluatuon. wherandsachpersmmmzble supphesor',AWcsfifia-atetuf Provi"

.2

dad

that the proper officer may, oh saficient "use. being shownbythe^said

taxable

penonextend^the

saidpetiodot'ninety days

hya further periodnot

exceedung

nmetydays.

(2) ^A

casualtaxable

person ^ora

non-resident taxiie

,

person shall, at the time

ofsubmission

of applmuon

fist registration under sub-section ^{(1) of}sodium ^{25. nuke} an

advance

deposit

oftax111 an

amount

equivalent)

the estimated tax

liability

of

such person

for

the

psiod

be' which the

registration us

sought:

.,

Provided drat where

any extension

as

tinie'lis soamt

with:

s-ubsectio'n

(l), shch taxable

pefsén

shall

Wabash-nu amoant'oft'axequivalenttothe estimatedtaxliabilityofstudipssmforthepenodforwhuchthemeasionlssoaght. ^,

:

(3)- ^Theamount

deposited under

sub-section

(2) ^dialbe creditedto the

electroniccashledgsofsadipssnnand shall be

utilised^unthemanner provided andssection '

28.

(1)

Every registered person and

a

person

to whom a -

Unique

IdentityNumber

hasbeenassumedshlllinfiuun the proper officer of any

changes^{in thebum} -furnishedatthe timeofregustratuonorsuheeqasl thereto,^uhsuch form, manner and

within

such

psiul as

may

be

prescribed.

..

(2) ^The

proper

officer

may,

on

the

basis

of

inform f

furnished

under ^sub-section

(If^a:as

unstained by '5"

him,

approve

or

reject amendmentsin the

""3 j

particulars

in

such

maths

and

Withun such period ^a'

"i"

maybeprescnbed. '

7

Provided ^thatappmufal ^{of the}propernfiies ^{"mt be} required ⁱⁿ

respect ^of

amendmentofsuchparticularsaa my^be prescribed:

Special provisions

relating ^to

casual

taxable person and

non-resident taxable person. registration.

29.

'45 .3", Prowded

further

that

the

proper ofiicer shall

not

reject the apphtation ^foramendment in^the

registration particulars

without giving ^theperson^anopporthnity

of being heard. ^. i

(3)

Any rejection or

app

"I, Central

Goods and SerVices Tax Act shall be deemed to . fih'n

filof amendments

under ^the be ^a

rejection or

approval

under

this

Act.

(1) Theproperofficermay, either on

his^ownmotion^oron

. 7"?"

(2)The

properoHicer niay cancel

the registration ^ofa

person ^v an

application filed by

the

registered

person

or

by

his legal

heirs, ^incaseof

death^ofsuchperson, cancel ^the7 registration, ^{in such}manner ^and,

within^such

period ^as may^beprescribed,

having

regard to

the

circumstances thre,4

'

.

(a)

fiebunnesshabemdmnnmeduansferredfully *for

any

ream

indndiiig

death

of the

proprietor. ,malgamatedmfioflnhgalumtxdanagedor otherwfieWof-or ^-~---

(b)

there^is

any change

in ^fieConstitutmn ^ofthe business; ^or

'

'

.

(C),

the taxable person, other

thantheperson registered' "

under

sub-section

(3)

of section25,

is no

longer, liable^{to be}registered

under

section ^22or

section

24

,

.

from such

date, including

any retmspective date, ^ashe

may deem

fit, where,-

(a) ^the

registered

person^has

contravened ^such

.

provisions of

the Act

or

the rulesmade

thereunder as

may be prescribed, or

(b) ^'a

person

paying ^tax

under section^{10 has not} '

furnished

returns

foir

threefeonsecutive tax

periods; '

01'

(c) any person, other thana

person specifiedⁱⁿ

clause ^' (b),

hasnot^Wedreturns

for ^acontinuous period

ofsix

months; ^or 7.'*(sl)._ any person^who

hasiakengyoluntary registration under

nib—section

($3);

of; section

25 has . not commenced

business

within^six

months ^fromthe date of

registration;

or mate) ^i,registration^hasbéenobtained ^by_

fneans^of

fraud,

"5'

Wiflful'misstatement or suppression of

facts. Prbv'ided that the

proper- 'ofiicer shallnot cancel the registration without

giving

the person

an

opportunity

of being

heard. Cancellation ^of

(3)"

46

The cancellation of

registration

under this

section shall notafl'eettheliabilityofthetaxablepersontopaytaxand ;

other

dues

undenthis

Act

or to

e

any hpligation{K} under this Act or.

the

roles

thereunder ^forany

(4)

A

(5)

period

prior ^{to the dateof}cancellation whether ^ornot such ^taxand

other ^{dues are}determined before^orafter '

.1

the

date

of cancellation *

The cahcellation ^ofregistration

under

theCentral

Goods '

and

Services ^TaxAct

shall bedeemed^tobe ^a

cancellation '

"oi'registration

under

this^Act."35.7 Everyaegistered

person whoseW ^iscancelled

A

shall

payian

amount,

byway-otidebit^inthe

electronic credit

ledger ^orelectronic

cash

ledger. equivalent ^tothe creditofmputtaxinrespectofinpntsheldmstockand inputs

containedⁱⁿ

semi-finished ^orfinished

goods ^held

V

in

stockorcapitalgoodsorplantandmachmeryon

the dayimmediatelyprecedingthedateofsuchmncellation^. _,

or

the output

tax

payable

on

such goods,

whichever'is

A

higher,

calculated'^insuch

manner ^asmaybe

prescribed:

Providedthatin case ofcapitalgoods'orplant

andmachinery, the

taxable

person

shall

pay ^anamount

equalto ^the

input ^tax

credit taken on the said

Capital

goods ^or

plant

and

machinery, reduced 'bysuchpercentagepointsas maybeprescribedorthetaxonthe transaction

value

of

such

capital goode ^or

plant

and

machineryunder section 15, whichever is

higher.

(6)

30.

(l)

(2)

"

(3),.

The amount

payable

under

sub-section (5)

shall ^be_ mlculated'in such manner asiifaybe'

prescribed. Subject ^{to such}conditions^{asmay be}

prescribed, ^any registered

person, whose

registration'^ism'n'celled

by ^the -

proper officer ^onhis ^own

motion; may apply ^tosuch officer for

revocation of

cancellation of the

registration

.

in the

prescribed

manner Wlthln

thirty days

from the

.

date

of serviceof

the

cancellation order. ^A

The proper

officermay, ⁱⁿsuchmanner and within such '

period ^as

may ^be

prescribed, by

order,

either revoke -

cancellationof

the

registration

or

reject

the

application:

., ^,l

15

i'Ihe

revocation ofieancellation ^of

registration

under the '-

"' ^' Central Goods and Services^{Tax Act}shall ^bedeemed ^to *2

{be

arevocation of cancellation

of

registration

under

this '

Revocation ^of

.

cancellation

of ! egisn m0" 1.

47 ^.

r,vn TAx'moIcncnmrr ^AND

DEBIT

NOTES

1%

3i. (1) I;

Aregisteredpersonfmlyingtaxablegoodsshamwore

,

- or

at

the time

ofi-

.

(a) ^,.

removat'of' goods

for supply

to

the

redplent,where the

supply

involves

movement Offg'bods;

or"

(b)

deliverylof'goods ^ormaking

available

thereofto

the _ _r¢6iPient-

in

any

9th."

case. '

4

issue a

tax invoice

shouting

the

description, quantity»

and

value of goodsythe taxcharged

thereon^andsuch

other

particulars

as

may

be prescribed:

'

,

_ Providedith'at the

Government

may, on

the recommendations '

of

the

Council,

by notification,

specify

the

categories

of

goods

or supplies ⁱⁿ

respectofwhidia

taxinvoicéslnllbeissiedmvithin

such time

and in

such

manner»

may be prescribed.

.

(2)

Ai'regiStered person supplying taxable

services

Shall, _-

beforepr

aftertheprovisibnofservicebutwithinaperiod prescribedissue ^{a tax}

invoice;

showing

the

description, ^' value; ^tar

.

' thereon

and such

other

particulars'as

.

may be

prescribed:

' '

,

_Pt0vided ^that

theG'overnmentmay,

631m recommendations of

the

"Connoil,' by

'nbtification

and

subject to

the

conditions mentioned

therein, spe'cifythe' :categories

of

services in

respect

of i

(a), '

"

any

other

document

issued

in

relation ^{to the}

supply shallbedeemedtobeatagin'voice;0r (b)

taxinvoicemaynotberequircdtobeissued.

(3)

'

Notwithstandingmm; containedinisub-sections (1) '

and

(2)—:

(a)

,-

a

registeredpemn

mafiWithin

9n: month

front the date of issuance

of

certificate of

registration

j .andinsuchmanneras maybeprescfibedissuea revised

invoice against the

invoice

already

issued during ^the

period

beginning ^withthe

effective

date Ofwonfinihe ^date

ofissuance ^ofcertificate sofregistrafiontohini; ^»

(b) ^a

registeredperson maynot

issue

a

tax invoice

ifthe vaifieofthe

goods

arsemces

orbodi supplied ^{is less} '*

{bib

Mohundred'hipees '

: subject

to

such. Conditions' and

in'suehmanner'as'inay

be

prescribed; 'Taxinvoioe.

48

(c) a

registered p'e

supglying '

can?^,.goods or

.

servites orbothhogrypaymgmunder

(provisions '

of section 10 shallissue, instead

ofa^tax

invoice, a bill of

supply

containing

such

partiuilars and'in

such mykpresciibed. '

Providedthatthe

registeredpersmmaynotnsueabillof supplyifthevalueofthegoodsor

servicesorbothsuppliedisless than two hundred rupees

subject ^to

such

conditions and'in such manner as

may'beprescribed; '

(d) ^a

registeredperson Shall, on

receipt ^ofadvance paymwentwith

respecttoanysupplyofgoodsor ~,semicesorboth,

issuearecerptvoucherorany other

document,

containing

such

particulars ^as my be

prescribed,

evidencing ancerpt of

such

.

payment; »

-

;

ts); (f) '

issue a

payment

voucher ^at

the

time of

making

,

payment

to the

supplier

who is not

registered

under ., where,on receipt of

advancewith respect

to

any supply ^of

goods ^or

services ^{orboth the}

registered '

person

issues^a

receipt

voucher,

but

subsequently no

supply'^is

made

and ^{no tax}

invoice

is

issuedin pursuance

thereof ^thesaid

registered

person ^may iS'sue ^to

the

person

who

had made

the payment, ^a _

refundyoucher against suchpayment; a

registered person who is liable

to

pay

tax under sub-section

(4)

ofsection⁹shall'issue ^aninvoice ⁱⁿ respect ^ofgoods ^or

services^orbothreceivedby him

4

on

the

date of receipt

of goods

or

servrccsorboth, '

ea, registered person

whois

liable ^topaytax

under. sub—section (3) ^orsub-Section (4)

ofsection 9shall

7

"the'Act. ^""»

(4) ^{Incase of}continuous

supply ^of

goods,

where

successive '

statements of accounts

or successive

payments

are involved,

the'invoice shall ^beissued betcieor^atthe

time '

each such statement is

issued

or,

as

the

case maybe, each 5such

payment is

received.

(5)

Subject

to

the

provrsions ofclause

(5d)

ofsub-section ^(3),

.

in case

of continuous

supply of

services,— (a)

where^the

due ^dateof

payment^isascertainable from the

contract,

the

myoiceshall

be issued ^onor before

the

due

date

ofpayment; where ^thedue

date^ofpayinehtis-not

ascertainable

,

from

thecongact. theinvoice shall ^be

issued before , .;

or at the timewhen thesupplier

of service receives the

payment; '

49

'

(c) Where ^thepayment ^is

linked ^tothe

completion ^of 7(6)"

ranevenntheuivorceshallbeissued

onérbefore the date of compleuopcf that event. Inacasewherethesupplyofservrcesceasesundera icontractbeforethecompletisinoffiiesupplytheinvome '

"shallheissuedattheuniewhenthesupplyceasesand <7)

sudivaiceshallbeissuedtotheextentofthesupply effected

before such cessation. Notwithstanding anything

containedin

subsection^(1); wherethegoodsbeingsentormloenonapprovalforsale ^w orretumareremoved

before the

supplytakesplace,

the invoiceshallbeissuedbet'oreoratthetimeofsuwly orsixmonthsfromthedateofremovahwhicheverisearlier. -E:tplanataon—Forthepurposesofthissection,theexpressron'tax invoice"

shallinchideanyrevbedinvoiceissuedhythesupplierin respectofasupplymadeearlier.

32.,

33.

34.

(1)

(2)

'

Aperspnwhoisnotaregisteredpersonshallnotoollect mrespectofanysupplyofgoodsorservrcesorbothany amountbywayoftaxunderthisAct.

Noregistered personshallcollecttaxexceptin accordancewiththeprovrsionsofthisActortherules' made thereunder. ^/

Notwithstanding anything

contained^{inthisAct or}

any other lawforthefimebdnginfomwhereanysupplyismadefor aconsiderationmverypersonwhoisliabletopayuxforsudi supply

shall

prominently

indicate'in^all

documents relatingto assessment,

taxinvoice

and

otherlike

documents, ^theamount oftaxwhichshallformpartofthepriceatwhich ^such

supply ismade.

(1)

Whereataxinvoicehasuenissuedforsiipplyofany goodsorservicesorbothandthetaxablevalue

ortax chargedinthattaxinvoiceisfoundtoexceedthetaxable ^, value ^ortax

payable in

respect

of

such

supply,

or

where the

goods

suppliedareretumedbythe recipient.

or 'wheregoodsorservicesorbothsuppliedatefoundtobe deficient, ^the

registered person,^whohas

supplied ^such goods ^orservices^or

both, may

issue ^tothe

recipient acreditnotecontainingsudipmticularsasniaybe prescribed

unauthorisedoollection

oftax

Amountoftaxtnbe

g. indicatedintaxinvotoe Creditanddehnnotes.

5Q

A2) ^,A

hnyregistgred

person who

issues ^a

eredit ^{note in}relation f A

1,673

supply ^ofseeds ^or

services"

botfi

shall

declare ^the details'flof ^such

'credit'not'e

inth'e

return ^forthemonth during

which such'gi'efit'hote'ha's ^beEnissued ^butnot lMter ^than

September

fellowins ^{the endat the}

financial W mwhwhsuch'wwlv mmade^or

the

date

off-ling of ^the

relevant

annual return. Whichever ^is

earlier,

andif new;

liabili ashall

bquiTiSted ⁱⁿ

sueh:

manner ^{as may} bepmsefiM' \

,

Provided ^thatnoreduction in output ^tax

liability

of ^{the -} supplier-shall ^be

permitwd.

ifthe incidenceoftax ^and

interest ^on suchsupplihasbeenpass'edontoanyotherperson.

(9)

,Where ^{a tax}invoicihasbeenissued ^for

supply ^of

any -

:39de

or

Whom

and

thetaxable

value or tax charged

inthattaxinvoiceisfoundtobelessthanthe taxable

value ^ortax

payable ⁱⁿ

respect ^ofsuch

supply, the

registered

person, who

has

supplied

such

goods ^or ser'vic'es'br

both,

shall

issue ^tothe

recipient ^adebit ^note containingsuch partiqnlars asrmybe'pr'eserihed.

(4)

Any

registered

person ^whoissues ^adebit^{note in}relation &

to

9;

supply ofgoods or services ^or

both

shall

declare the details ^{of such}

debit'iiotein ^the

return^Forthemonth '

during

which

"such

'délifi'inoteflh'as ^beenissued ^andthe tax

liabilityshafl hemmed

in'such

manner ^as

may be prescribed. ^{. .} .2 3'3? ^2-

-

'_

A

:

' Explanationz—Eor ^the

'purposesof

this?

Acmthe

Expression

"debit

"

note" shall

include ^a

supplementary invoice. ^..

5,1:

35.

«(1)

Every

registered

person shall

keep

and

maintain,

at -

mmmorsaamsshmsomdmme certificate of

regiitrauomaweand carrier

account of- ,.I-

(g) ^,»

production or. manufacture

ofgqods (th

ihwa'td^or. t

: I")

both,

W"

(é? 'Mofgoods-

, ,

.

(d)

input tit:23m"331%

A

V

V

(eff

'outputtaxpayable Minna," V

(f) ^suchother particulars as

may

be

prescribed

"

'3 a

f

is; '

t vaidedfliatwheremorethmonephaofbusmasrs .specifiedin

thencertificate

ofrefisti'atioir,'^themuseum ^to eachpiaceofhusinessshallbekeptatsuchphcetbfbuainefi- suppl" ^6f

goo'tisor services^or

5:,

Provided further that the

registered person

may keep

and ^- maintain

such

accountsand

other particulars :3ng form' m

such

manner as

may beprescribed. .

miss. $33.""1' '3"??59

(2)

Every

owner^or

operator:^of

warehouse or go60wn

oil? ⁷ anyotiserplaceusedforstoragedfgoodsandevery

"

WW1;

irrespeeflwe

ofwhethe'r hesis ^a

registered ' «person ^{or not.}shall

maintainregardsafthe consignee^and

other

relevantzdet'aiis

of such goods ^ass maybepreséribed.

:~-r:~

,

(3)

The

Commissioner may

notify

a

class of

taxable persons to

maintain

additional accounts or

documents for such purpose ^as

may be

specified

therein.

(4)

Where^the

Commissioner

considers that any class of taxable persons

is not

in

a

position

to

keep

and maintain accounts

in

accordance with the

provisions

of this section, ^he

may,^forreasons

to be

recordeddn writing. permit ^suchclass

oftaxablepersons ^to

maintain accounts in

such manner

as

may

be

prescribed. Accounts and other

$2

(5)

Every registeredlifietioh ^{whoa m}

during ^a accountsauditedbyacharteredamaaoost accountantandshnllsubmitacopyoflhemdbdmd '

24(2)°fsc$fi9n44andmotfiméognminmdam

,

audmspnewmaybepmaibed-

.

(6)

Subject ^mike

profisions

ofdausé

(h)

Jab-Section ⁽⁵⁾ x.

ofsccfienl7wherethemsissgedpersonmmm forthem

.

«was 0:150thme section

(l),theproperoficerslmlldeterniinefileamoum oftaxpayable onthegoodsorservieesoeboflndntm not accounted

for, ^asifsuch

goods ^or

samotboth hadbeensupphedbyfiéh'pmv amalgam '

of-

Wn

73:. Otzmfipnflasrthwsemaybe-Mm mutandts,'

afif'for

determmati'^ofi

ofsoéh'mx. ',

3 ~,

.

.

g»!

g

:

36. Bveryfifiistcredpésonrequiredtokeepandmaintainboob ofaccountorothcx

moordaundermb-section (1)0fseetion35 _

shaflmtfinthununflltheexpiryofmtymwfim moi-duedateoffilingofanmalremmfordneyurm' '

to such

accounts and records: ^, 'Wimfistécdpemnmhoinwybafifipda revisionoranydthetprooeedinfibefmemrAppdfleMu RevisionalAmhofitymAppdlateTribunalorcoumwhednfiledby himorbyfipeCommisdonenorisunda-Wfixnm undetClnpterXBLflnfl

retain^the

mideafll

other reCordspertaining'o ^the

subjectmnm ofsu'chtppenlu revision

or

Wotmvmhrtwbd

ofone

purifier

fiml dispodofswh

upped

mievision' ^or

pmceedingtonmufignion. orformepefiodspedfiedabmwhichcmishten ^v. Petiodofmentionof

accounts.

53

CHAPTER-IX

,

RETURNS

37.

(1)

Every

registeredperson, other than an

Input

Service Distributor,^a

non-resident taxable person and a

person paying ^tax

under ^the

provisions ^ofsection 10,section ⁵¹

.

or

section

52,

shall furnish,

eleCtronically,

in

such form and manner asmay be prescribed,

the

details of outward

,

Supplies ^ofgoods ^or

services or^both

effected, during a

tax

period.

on

or

before the tenth

day

of the

month succeeding ^{the said tax}

period ^{and such}

details shall^be communicatedto

the

recipient ofthe

said

supplies

within' such ^time

andin

such manner^{as may}

be

prescribed:

Provided that the

registered person shall not

be

allowed

to I furnish the

details

of

outwardsupplies

during

the

period

from

the '

eleventh

day

to

the

fifteenth day of the

month

succeeding

the tax period:

Provided further^that

the Commissioner

may,^forseasons ^to be

recorded

in

writing, by

notification,

extend

the time

limit

for furnishing ^suchdetails, ^forsuch

class^of

taxable persons ^as

may^be specified

therein:^/ Provided ^alsothat

anyextension

of time limit

notified by

the Commissioner ^ofcentral tax shall be

deemed to

be

notified

by

the Commissioner. ^,._

(2)

Every registered person^who

has

been

communicated the

details

under sub-section

(3)

of section 38

or

the details pertaining

to

inward

supplies

of

Input

Service Distributor under

sub-section

(4)

of section

38 shall either

accept

or

reject

the details so

communicated, on or

before the seventeenth

day,

but-nat'before the fifteenth

day,

of the month

succeeding

the tax

period and the

details

furnished

by

him

under

sub-section

(1)shall stand amended accordingly

__

(3)

Any registered person,^{who has}furnished the

details under

sub-section

(1)

flat any

taxperiod

and which have , remained unmatched under '

section

42

or"

seetion

43,

v

shall, upon

discovery

of

any-

erroror

omission

therein, rectify ^sucherror^or

omission^insuchmanner^as

may^be prescribed, ^and

shall pay^thetaxandinterest, ^ifany, ⁱⁿ '

a case

there is a

short

paymentof

tax on

account of

such '

error or

omission,

in

the return to

be furnished forsucli tax

period:

Furnishing

details ^of outward supplies.

54

Provided ^{that no}rectification

of

error ^oromission ⁱⁿ

respect of ^thedetails furnished

under sub-settion

(1)

shall ^beallowed after

furnishing^ofthereturn under

section³⁹ for the month

of September following ^theendofthefinancial^{year to} which such details

pertain. or

furnishing

of therelevant annual

return. whichever

isearlier. Explanation:—For ^the

purposes ^of

this rChapter, the

expression

"details ^ofoutward

supplies"

shall include

details

of

invoices, debit

notes, credit

notes

and revised mvoxcesusuedin relation ^tooutward supplies ^made

during ^{any tax}

period. ^. '

3 8.

(1) Every registered persongother

than ^an

Input

Service Distributor ^{or a}

non-resident

taxable person ^{or a}

person paying ^tax

under^the

provisions ^ofsection^10. section

51 ^or

section ^52,

shall

verify,

validate.

modify^ordelete, ifrequir'edthede'tailnelatingto

outwardsuppliesand

.

credit

or debit

notes communieated

under

sub-section

(1) ^of

section ^{37 to}

prepare ^thedetails ofhis inward

supplies ^and

credit ^ordebit

notes and may include therein, ^thedetails ^ofinward

supplies andcredit ^or '

«debitnotesreceivedbyhiminrespectofmchsupplies '

»

that have notbeen

declaredbythesupplierundersub- '

section

(1)

ofsection

37.

'

' I

(2) EveryngisteredpersomotherthananlnpmService

,

' Distributororanon-residenttaublepersonoraperson paying ^taxunder ^the

provisions ofsection 1:0,:section. 51 ^orsection 52, shall furnish.

eleetromllfithedetails ofinwardsuppliesoftaxablegoodsorservicesorboth, including

inward

supplies ^of

goods

or-services or both

onwhich

thetaxispayableou reversechu'gebasisunder

,

this

Act and

inward

supplies

of goods

oriservices

or both taxable

under ^the

Integrated

Goods and

Services

TaxAct or

on which

integrated goods

and

services

tax is

payable under

section ^3ofthe

Customs

Tarifl Act, 1975, and credit ^ordebit

notes received ⁱⁿ

respect

of such

supplies during ^atax

period

after^thetenth

day but ^{on or}

before the fifteenth

day

of the month

succeeding ^the tax

period in such

form and

manner ^as

may be

prescribed:

_

Provided ^thatthe

Commissioner^may,for

reasons to be recorded ⁱⁿ

writing. by.

notification, extend ^the time limit

for furnishing ^such

details ^forsuchclass^oftaxable persons ^{as may} be

specified

therein;

.

' Provided

further^thatany extension ^{of time}

limit

notified ^by the Commissioner;of central tax'shall

be deemed

'to

be notified

by the Commissioner. '

,

.F .l. ll-lof inward

supplies.

55

(3)

The

details ^of

supplies

modified,

deleted ^or

included

by the recipient and

furniShed

Under

sub-section

(2)shall '

be

communicated to

the

supplier

concerned

in

such mannerandwithinsuchtimeasmaybeprescribed.

(4) ^The

details^of

supplies

modified,

deleted^orincluded

by the

recipient

in

the return

furnished

under sub-section (2)^orsub-section

(4) ofsection39shallbecommunicated to the

supplier

concernedin such manner and

within such time as

may

be

prescribed.

(5)

Any

registered

person,^{who has}

furnished ^the

details under

sub-section

(2)

for

any tax

period

and which have remained

unmatched

under

section ^{42 or}section ^43, »

shalt, upon

discovery

of any

error

or omission

therein, rrectifysuch

error^or

omission^{in the tax}

period

during which sucherro'ror omissionisnoticedin such manner 'asmaybeprescribed,

andshall'paythetaxandinterest,

"ifany,

in case there is

a short payment

of tax on

account of such error or

omission,

in

the return

to

be

furnished for such tax

period. Provided that^norectification^of

erroror

omission'ⁱⁿ

respect of the

details furnished under

sub- section

(2)

shall

be allowed after furnishing^ofthe

return

undersection^{39for the}month^ofSeptember following ^{the endofthe}

financialyear ^to

which ^suchdetails

pertain, '

orfurnishing ^ofthe

relevant

annual return, whichever^isearlier

39 .

(1) .

Every

registered person, otherthan

an

Input

Service Distributor^ora

non-resident taxable person ^{or a}

person

"paying ^tax

under ^the

provisions ^ofsections ^10,

section

51

bisection

52

shall,

for every calendar month ^or part thereof,

furnish, ^{insuchformand}manner ^{as may} be

prescribed,

a

return,

electronically,

of inward ^and outward

supplies

of goods

or

services ^or

both, input ^tax credit

availed, ^tax

payable.

tax paid

and other

particulars as may beer

on

or

before

the

twentieth

day of the month

succeeding

such

calendar month

orpart thereof.

(2) ^A

registered person

paying ^taxunder ^the

provisions ^of section '10

shall,

for each

quarter

or

part

thereof, furnish, in

such form and manner as

maybe

prescribed,

a

return. electronically, ^ofinward

supplies ^ofgoods ^orservices ^or both, ^tax

payable ^andtax

paid

within

eighteen days

after the

end ofsuch

quarter. Worm

c»

,

(4)

(5)

(6)

56

"

Every

registered

person required ^todeduct ^taxatsource under the

provisions"

of

section.⁵¹shall

furnish, ⁱⁿ such form and manner^as

may be'prescribedt ^a

return, electronically, ^{for the}

monthin

which ^such

deductions have

heen ^made

within ^ten

days

alter the end ^of

such month. Every

taxable

person registered ^asan

Input

Service Distributor shall, ^{for ,}

every calendar month ^or

part thereof; filrnlshmsudifomandmannerasmayhe prescribed, ^a

return,

electronically,

within

thirteen ^days after ^{theend ofsuch}month. Every registered

non—resident taxable person shall, for every calendar month ^or

part

thereof, furnish, ⁱⁿ such ^formandimnner ^as

maybe prescribed, ^a

return, electronically,

within

twenty days

after^{the. end ofa} calendar

month ^or

within

seven

days

after

the ^last

day

of the

period ^of

registration specified

under

sub-section(l) of section

27', whichever ^isearlier. The

Commissioner

may,^for

reasons^toberecorded in

writing,.by

notification.

extend

the ^timelimit

for furnishingthereturnsunderthissectionforsuchdaas ofregisteredpersonsasmaybespecifiedtherein:

Provided that any extension oftime limit

notified

by

the Commissioner

ofcentral ^taxshall ^bedeemed ^tobe

notified by

the Commissioner. '

'

(7)}

Everyregistered person, who is

required ^tofurnish a

return. under

sub-section")

or sub-section

(2)

or sub-sectionfgilor

sub-section ^(5);shall pay'to ^theI

.

Government

thetax'due

as

per such

return

not later

(8)

,thanthelastdateonwhichheisrequiredtofiirnishsuch '

return.

Every registered person who ^is

required ^tofurnish ^a return under

sub-section (1) ^orsub-section

(2)

shall furnish ^areturn for every ^tax

period

whether ^ornot

any '

supplies

of goods

or services or both

have been effected during ^{such tax}

period.

40.

Every registered person who has made

outward supplies

1n 1 '

3

the

period

between the

date

on

which

he became

liableto;

41:

42.,

57

(9)

Subject ^{to the}provisions oEsections ^{37 and}

38, ^ifany registered person after

furnishing^a

return under^sub- section (1) ^or

sub-section

(2)^subsection

(3) or ^sub- section

(4)

or sub-section

(5)

discovers any

omission or

incorrect

particulars

therein,

other

than

as

a result

4

of

scrutiny,

audit,

inspection

or

enforcement activity by ^thetax

authorities, ^heshall

rectify ^such

omission ^or '

incorrect

particulars 1n

the return

to be

flirnished

for the 3-?

month or

'qu'arter,

as

the

case

may be,

during which

such

"omission or

incorrect

particulars

are

noticed, sillject

to payment^of

interest

under thrs

Adi;-

"

' Provided ^{that no such}

rectrfication

ofany omission or incorrect particulars

shall^be

allowed

after

the

due ^{date for}

furnishing^ofreturn for the month of

September

or

second quarter

following

the

end

of the financial year,

or the

actual

date

of

furnishing of relevant annual

return,

whichever'^is

earlier

(10) ^A

registered

person

shall ^{not be}

allowedto furnish a

return

for a

tax

period

if

the return for

any

of

the previous ^tax

penods ^hasnut

been

furmshed

by him. registration ^tillthedate ^onwhich

registration

hasbeen

granted shall declare the same in the first return furnished

by

him after grant

of

registration.

(1)

Every

registered

person shall, subject ^to

suchconditions

"(21'

"

(1)

and

restrictions ^as

may be

prescribedbe

entitledto^take crecbt^ofeligible input

tax, ^{as self}assessed, 1nhis return '1 and

such

amount shall

be

credited

on a

provisional

basis to

hiselectronic

credit

ledger The credit referredto

in

sub-section (lishallrbe. ut1115ed only ^for

payment ^ofself-assessed

output ^taxas

per^the return

referred ^{tointhe said}

subsection. ^_, 'lhe

details ofevery

inward

supply

furnished by ^a

,

registered person (hereafter 1n

this

section

referred to as the

"recipient ")

for a

tax

period

shall,

in

such

manner and

within

such time as

may be

prescribed

be matched—

7

(a) withthe

correspgndmg details:

of outward

supply furnished

M the

corresponding registered' person (hereafterⁱⁿthis section

referred

to as

the

"supplier"^{) in his}

valid

return ^for

the ^sametax period ^{or any}preceding ^tax

period; First Return. Claim of

input ^tax credit and

provisional acceptance

thereof. Matching,

reversal^and reclaim of

input ^tax '

credit.

51

of 1975

51

of 1975

(2)

(3)

(4)

(5)

(6)

(7)

58

(b) ^{with the}

integrated

goods

and services tax

paid under section 3

of the

Customs'Tarifi'

Act,

1975

in:\ «

.

respect

of goods imported

by

him;

and

(c) ^for

duplication ^ofclaims ^of

input tan credit. _

The claim^of

input

tax

credit in

respect

of invoices or debit notes

relating

to inward

supply

that match with the

details ^of

corresponding

outward

supply

or with

the integrated goods ^andservices^tax

paid

under section

3

of

the Customs Tariff

Act,

1975 in

respect

of

goods [imported ^{by him}shall^be

finally accepted ^{and such} acceptance

shall^be

communicated, ^{in such}manner^as may ^be

prescribed, ^to

the

recipient.

' Where the

input

tax

credit

claimed

by

a

recipient in

respect

of an

inward

supply

is

in excess of

the tax declared

by ^the

supplier ^forthesame

supply

or

the outward

supply

is not

declared

by

the

supplier

in

his valid returns, the

discrepancy

shall be communicated to both such persons

in

such manner as

may be

prescribed. The

duplication

of

claims of

input

tax

credit

shall be

,

communicated

to

the

recipient

in such manner

asmay be prescribed. The amount

in

respect

of

which any

discrepancy

is communicated

under

sub-section

(3)

and

"which is not

rectified

by

the

supplier

in

his

valid

return for the month in

which

discrepancy

is

comimmicated shall be

added to

the

output

tax

liability

of the

recipient,

in such manner as

may be

prescribed,

in

his return for the month

succeeding

the

month

in

which

the

discrepancy is

communicated. '

The amount

claimed as

input

tax

credit that is

found to be in excess on

account of

duplication

of

claims shall be

added,

to

the

output

tax

liability

of the

recipient

in

"his return

for the month in

which the

duplication

is communicated. The

recipient

shall

be

eligible

to

reduce,

from his

output' tax liabilityrthe

aniount

added under

sub-section (5), ^it ;

the

supplier

declares the

details of

the invoice or

debit note in his valid return

within the

time

specified

in sub- section'(9) ^of

section ^39.

(8)

(9)

59

Arecipient ⁱⁿ

whose

output

taxliability any

amount^has been added under

sub-section

(5)

or

sub-section

(6),

shall be liable to

pay

interest at

the rate

specified

under '

sub—section

(1)

of

section 50

on the amount so

added from the

date of availing

ofcredit till the

corresponding additions are

made under the said

subsections. Where

any

reduction in

output

tax

liability

is

accepted under

sub-section

(7),

the interest

paid

under sub— section

(8)

shall

be refunded to the

recipient by

crediting the

amount

in

the

corresponding

head ofhis

electronic cash

ledger ^{in such}

manner ^{as maybe}

prescribed:

Provided that

the amount of interest to

be

credited

in

any

case shall'not exwed the amount of interest

paid

by

the

supplier.

(10) ^Theamount

reduced

from the

output

tax

liability

in

(1)

contravention of

the

provisions

of

sub-section

(7)

shall be

added

to'the output

tax

liability

ofthe

recipient

in'his return

for

the

month in

which such contravention takes place ^andsuch

recipient

shall^be

liable^to

pay

interest^on the amount so

added

at

the rate

specified

in

sub-section

(3)

ofsection^50. The

details of every credit note

relating

to

outward supply

furnishedby ^a

registered person (hereafter ⁱⁿ this section'referred to as

the

"supplier")

for a tax

period shall, ^{in such}manner^and

within such time as

may be . prescribed, ^be

matched- ^.

(a) [With ^the

corresponding reduction^inthe

claim^for '

input ^tax

credit

by ^the

corresponding registered person (hereafter

in this section

referred^toas

the

"recipient") ^{in his}valid return ^{forthesame tax} period ^or

any

subsequent ^tax

period; ^and

(b) ^for

duplication

ofclaims^forreduction in

output

tax liability. ^, '

The claim for reduction in

Output

tax

liability by

the supplier ^thatmatches ^withthe

corresponding

reduction in the claim

for input

tax

credit

by

the

recipient

shall

be finally accepted and

communicated, ⁱⁿ

such

manner ^as may be

prescribed, ^to

the'supplier.

1

Matching,

reversal^and reclaim of

reduction in output ^tax

liability.

(5)

(6)

(7)

(8)

3(9).

92a

60

Where the'reduction'of

output ^tax

liability ⁱⁿ

respect

of Ward

supplies

exceeds

the

corresponding

reduction '

-i'utthe claim

for'

input ^taxcreditioriéthe

corresponding

2

credit

note

isnotdeclared

by

the

recipient

in

his valid returns; the

discrepancy

shall

becommunieated ^to

both 1;} I. such persons ⁱⁿ

such;manner ^as

may ^be

prescribed. 'Ihe

duplication

of claims for reduction ⁱⁿ

output

tax liability

shall^be

communicated ^tothe

supplier'^insuch manner

as

may

be

prescribed. The

amount

in

respect

of which

any discrepancy

is communicated

under

subsection

(3) ^and

which^is not rectified

by ^the

recipient ^inhis

validi'eturn^forthe month in which

discrepancy ^is

communicated

shall be added ^tothe

output ^tax

liability

of ^the

supplier, ⁱⁿ such manner ^as

may

be

pracribed,

inhisireturn forthe month

succeedingthe

month in which the

discrepancy is communicated. Theamountinrespectofanyreductioninmitputtax liability

thatis

foundtobeon account

ofduplication ofclaimsshallbeaddedtotheoutputtaxhabihtyof thesupplierinhisreturnforfliemonthinwhichsuch duplicationiscommunicated.

'

'Ihe

supplier

shall be

eligible

to

reduce, from

his

output liability ^theamount added

under sub—section ^{(5) if} the

recipient

declares^thedetailst the credh'note'in^his valid return within

the ^timespecifiedⁱⁿ

sub-section

(9)

of section

39.

A

supplierⁱⁿ

whose

output

tax

liability any

amount has been added under sub- section

(5) or sub—section

(6),

shall be

liable to

pay interest

at

the

rate

specified

under' sub-sectioh (1)

of section 50in

respect

ofthe amount so '

added from the date ^of

such claim ^for

reduction^inthe '

output ^tax

liability ^tillthe

Corresponding

additions^are made under the said

subsections. Where any reduction' in

output

tax

liability is

accepted under

sub-section

(7),

the interest

paid

under sub- section

(8)

shall be refunded to

the

supplier

by crediting

,

the

amountin

the

corresponding

head

of

his

electronic

"f fcash ledger^insuch

manner

as ^maybe

prescfib¢d= Provided ^{that the}amount ofinterest ^tobecredited^{inany case} shall noteticeed

the

amount

of

interest

paid by

the

recipient.

(5)

(6)

(7)

(8)

3(9).

92a

60

Where the'reduction'of

output ^tax

liability ⁱⁿ

respect

of Ward

supplies

exceeds

the

corresponding

reduction '

-i'utthe claim

for'

input ^taxcreditioriéthe

corresponding

2

credit

note

isnotdeclared

by

the

recipient

in

his valid returns; the

discrepancy

shall

becommunieated ^to

both 1;} I. such persons ⁱⁿ

such;manner ^as

may ^be

prescribed. 'Ihe

duplication

of claims for reduction ⁱⁿ

output

tax liability

shall^be

communicated ^tothe

supplier'^insuch manner

as

may

be

prescribed. The

amount

in

respect

of which

any discrepancy

is communicated

under

subsection

(3) ^and

which^is not rectified

by ^the

recipient ^inhis

validi'eturn^forthe month in which

discrepancy ^is

communicated

shall be added ^tothe

output ^tax

liability

of ^the

supplier, ⁱⁿ such manner ^as

may

be

pracribed,

inhisireturn forthe month

succeedingthe

month in which the

discrepancy is communicated. Theamountinrespectofanyreductioninmitputtax liability

thatis

foundtobeon account

ofduplication ofclaimsshallbeaddedtotheoutputtaxhabihtyof thesupplierinhisreturnforfliemonthinwhichsuch duplicationiscommunicated.

'

'Ihe

supplier

shall be

eligible

to

reduce, from

his

output liability ^theamount added

under sub—section ^{(5) if} the

recipient

declares^thedetailst the credh'note'in^his valid return within

the ^timespecifiedⁱⁿ

sub-section

(9)

of section

39.

A

supplierⁱⁿ

whose

output

tax

liability any

amount has been added under sub- section

(5) or sub—section

(6),

shall be

liable to

pay interest

at

the

rate

specified

under' sub-sectioh (1)

of section 50in

respect

ofthe amount so '

added from the date ^of

such claim ^for

reduction^inthe '

output ^tax

liability ^tillthe

Corresponding

additions^are made under the said

subsections. Where any reduction' in

output

tax

liability is

accepted under

sub-section

(7),

the interest

paid

under sub- section

(8)

shall be refunded to

the

supplier

by crediting

,

the

amountin

the

corresponding

head

of

his

electronic

"f fcash ledger^insuch

manner

as ^maybe

prescfib¢d= Provided ^{that the}amount ofinterest ^tobecredited^{inany case} shall noteticeed

the

amount

of

interest

paid by

the

recipient.

45.

47.

61

(10) The amount

reducedfrom

output ^tax

liability

in contravention of the provisions

of

sub-section

(7),

shall 'be

added

to

the

outplrt

tax

liability

of the

supplier 1n his > return

for themor'rthin which

such contravention takes -

place and

such

suppligrshall

be liable to

pay

interest on the amount so

added

at

the rate

specified in

sub- section

,

(3)^ofsection

50. ^'

.

.

(1)

Every registered person, other

thanan

Input

Service Distributor, ^a

person paying ^tax

under section 51 or section

52, ^a

casual

taxable person and a

non-resident taxable

person,

shall furnish an

annual

return forevery financial year

electronically' 1n

such

farm and manner

"

as may be

prescribed on ^or

before the

thirty- -first

day

of i

1 December following the endof^Such

financial year. v

('2)!

mEr/ery registered person

who is

required

to

get

his '

. accounts audited

under

sub-section

(5)

of section '

'3

35

shall furnish electromcally, the annual.

return under

sub-section⁽¹⁾

along with. ^the

audited copy^of the

annual

accounts and a

reconciliation statement, reconciling ^the

value^of

supplies

declared-in ^thereturn furnished forthe financial year with

the audited

annual financial statement, and such other

particulars

as

may be prescribed.

,

Every

registered

person ^{who is}

required ^tofurnish^areturn under

sub-section

(1)

of section 39

and whose

registration

.

has been

cancelled shall

furnish a

final return within

three months of the

date

of

cancellation or date of

cancellation order,

whicheverrs

later,^{m suchform and}manner ^as

may

be prescribed. Wherea

registered person fails^tofurnish^areturn under section

39,

section 44 or

section

45,

a

notice

shall

be issued requiring ^himtofurnish ^suchreturn within

fifteen

days ⁱⁿ such form

and manner as

may be

prescribed. *(1)

Any

registeredperson ^whofails^to

furnish ^thedetails ^of , outward

or

inward

supplies required

under

section 37

or section 38 or

returns

required

under section 39 or section

45

by

the due

date

shall pay

a

late fee of one hundred '

rupees for every

day during

which

such failurecontinues subject ^toa

maximum amount^offivethousand rupees. Annual return.

Final return.

Notice to return

defaulters.

Levy ^oflatefee.

.

'62

(2)

Any registered

person

who

fails to

furnish

the return _

required

under

section

44

by

the

due date

shall be liable ^to

pay ^{alatefee ,of one}

hundred rupees ^for

every day

during

which ^such

failure

continues subject ^toa 3-

maximumofan

amount

calculated

ata

quarter

per

cent of his

turnover fifiie' "State '

,

.

(1) '-Ihemanner

of

approval

of

goods and services tax Goodsandscrvicesw practitioners,

their

eligibility

conditions,

duties and Pm'imm- ^- obligations,

manner^ofremoval ^and

other

conditions relevant for

their

functioning shall

be

such

as

may be prescribed.

(2) ^A

registered person

mayauthorise

an approved goods _'and service ^tax

practitioner to

furnish

the details of outward

supplies

under section

37,

the details

of inward supplies

under

section ^{38 and}

the

return

under

section 39 or

section

44°in

suchmanner as maybe prescribed.

( 3)

Notwithstanding anything

contained in

sub-section (2), ^the

responsibility ^for

correctness

ofany particulars fiirnishedinthe

return^or

other

detailsfiledbythegoods and semces

tax

practitioners

shall

continue

to

rest

with the

registeredperson

0n whosebehafl'such return

and detailsarefurniahed. r

i

49.

(2)

_(l)

63

'

CHAPTER-X

PAYMENT

OFTAX

Eyery

deposit ^made

toWaras tax, interest,

penalty, ^fee or

any

other amount

by a; taxable person

by

internet banking ^or

by using credit^ordebit cards^orNational

.

Electronic Fund'I'ransfer or Real Tm:

Gross Settlement or by

such other mode and

subject tosuch conditions and restrmuonsasmaybeptescribedshaflbecreditedto ^the

,,

electronic

cash ledger ^ofsugh person

to be

maintained' in

suchmanner as

may be prescribed, I'Rg"

The

input

tax credit as self-assessedm

the return

of are glistered person shall^be

credited^{to his}

electronic

credit '

.-.-

ledges

in

accordance

with section

41,

to

be

maintained .«insuchniannerasmaybe prescribed. ^{.. .;} x

The amount

available in the

electronic cash

ledger

may 3 ^- be used ^for

making

any payment

towardstax, interest, '

(4) ^-

"penalty; ^feesor

any

other

amount

payable

under ^the provisions ^{of thisActorthe}

rules^madethereunder'ⁱⁿ

,

,

such mannerand

subject ^to

such

conditions

and

within . '

'suCh

time

as

may

be preScribed. The ambunt

available in

the

electronic credit

ledger may ^beusedfor

making any

payment

towards

output tax

under

this Act or

under

the

Integrated

Goods and Sci-Vices ^TaxAct'in

such manner^and

subject ^tosuch

5)

Theammmtrofinput ^taxcredit

available^inthe

electronic creditledger ofthe

registered person on

account ^of-

(a)

integrated ^taxshall first ^beutilised

towaras payment of

integrated

tax

and the amount

remaining,

ifany, Payment ^oftax.

(interest, Penalty amounts. maybeutihsedtowardsthepaymentofcentraltax',, ^{= -} and State tax.

or

as the case may

be,

Union

territory tax. ⁱⁿ

that

order; ^_,. (b)

thecentraltaxshallfirstbeutihsedtowardspayment of central tax and

the

amount

retraining.

if any, may be

utilised

towards

the payment of

integrated 1' _' _ k

m:

1

l

,

ic)' ^:theState ^tax

shall first ^beutilised towards payment of State tax and

theamount

remaining,

if any, may be

utilised towards

the

payment

of integrated

tax; and other

64

(d) the

Union

territory ^taxshall

first be

utilised -

towards

payment

of

Union-gterritory ^taxandthe amount-remaining, ^if

any, may ^beutilised

towards the

payment

of

integrated ^tax; »

,

' '

i

4

(e) the central taxshall

not'be

utilised^tomPayment

(7)

(8)

'

of State tax ^or

Union

territory

tax;

and i

(f) ^the

State ^{tax or}Union

'*'territory~m:shall ^notbe

.

,

.

utilised toWards

payment ofcentral

tax. '

The'balance ⁱⁿ

the3e1ectronic ^cash

ledgerbr'

electronic credit

ledger

after

payment

oftax.

interesfipenalty, ^fee or

any other

amount payable

under

this

Act

"or the rules made thereunder may be refunded ⁱⁿaccordance

with

3

the

provisions

of section

54.^_ '

_

.

.

An liabilities

of

a taxable person under this

Act shall _

be recordedand maintained ^{in an}electronic

liability register ^insuchmanner ^{as maybe}

prescribed. Every taxable

person

shall

discharge^{his taxand}other .duesunderthisActortheruiesmadetheeeunderinthe following

order,

namely:— ^.

I

3' (a)

self~dssessedtax,

and

other dues: related ^toreturns of previous ^tax

periods; .3g (b).

self-assessed

tax, and other

dues

related

to the t9).

retumofthecurrenttaxperiod; ^{'_ >} (cl .'anyjdth'er

amouht'payalile

under ^{this Act orthe} '

rules ^madethereunder including; ^the

demand determined

under section ^73orsection ^74. '

Every person who ^has

paid ^{the tax: on}

goods ^or

services orboth under this Actshall.

unless

the

contrary

is

proved by ^{him, be}deemed ^tohave

passed ^{on thefull}incidence of ^{such taxtothe}

recipient ^{of such}

goods ^or services ^or Explanations ^Forthe

purposes ^ofthis

SectiOn, (a)

(b)

the date of credit^tothe

account of the

Government ⁱⁿ the authorised bank shall be'deemed ^to

be ^thedate

of the

expression:

'

'

_

(i)

""tax dues'imeans' ^thetax

payable

'Sun'der ^{this Actand} does ^notinclude

interest, ^feeand

penalty; ^and '

deposit-in ^the

electrohic'cash

ledger. '

(ii)

«other

dues"

meansjntezrest,

Penalty, fee ^01'

any

3

other

amount

payable

under

this Act

61: the rules

"

made

taste-$19"?-

.- '

7 ^_,

50.. as)

65

Every

person whors

liable^topaytax ⁱⁿ

accordance ^with the

provisions

of

this Actor

therirles

made

thereunder, fails to

pay the tax or

any part

thereofto the Government within the

period

prescribed,

shall

for the

period

for »

,0

which

the tax or

any part

thereof

remains

unpaid, pay

,

,

.

on

his

own,

interest at such"i'ate,,notexceedingeighteen '

,

3931,

cents

as

may be

notified

by the Government

on the _(2)

(hereafterⁱⁿ

this section referred^{toas "the}

deducto'r"), ^todeduct ^{, '}

(3)

\

recommendations ^ofthe

Cogncm; Z'Ihe interest

under

sub- section

(1)

shall ^becalculated in

such manner as

may be prescribed

from

the

day

. succeeding

the

day on

which such

taxwas

due to

be_ Paid. ^{, _}

, _^. -

A

taxable person who makes an

undue or

excess claim of

input

tax

credit

under

sub-section

(10)

of section 42 ^or

undue

or excess

reduction" in

3utput

tax

liability under ^sub-section(10) ^3fsection

43,

shall pay

interest ~on Such undue ^orexcess

claim ^or

on

such

undue^or excess reduction,

as the

case may be, at such

rate not exceeding twenty- -four per cent,as

maybe

notified^J '

by ^the

Government on

the

recommendations of

the

(1)

3

Council. Notwithstanding anything to^thegontrary

containedⁱⁿ this

Act,

the

Government

may mandate,-

(a) ^a

department ^or

establishment ^ofthe

Central Government or

State

Government;

or

,

(b)

local

authority, ^or (c)

Governmentalagencies; ^or (d)

suchpersons^orcategoryofpersons asmaybe notified by ^theGovernment ^onthe

recommendations ofthe

Council.

tax

at

the rate ofone

per

cent

from

the

payinent

made

or credited to the

supplier

(hereafter

in

this section

referred to as "the

deductee") of

taxable;

goods onservices

or

both,

where

the

total

value of

such supply,

under ^a

contract, exceeds^twolakhand

fifty

thousand rupees:

is

different from

the

Stateor.

as

the case

maybeUnion temtorywof"

registration ^{of the}recipient. Provided that no

deduction shall be

made ifthe location of the supplier ^and

the place ^ofsupply^rsin^a

§tate qtUnion

territory which

2

Interest on

delayed y; payment

of tax. Tax

deduction at source.

66

ai-Explamztion: ^Forthe

purpose ^ofdeductionof ^tax

specified

above, the value

of supply shill be

taken as the

amount

excluding

the tax indicatedin^theinvoice

(2)

r.

(3)

a

(4)

"(5) :22?'^it2' Theamountdeductedas tax under this section shall be '

paid^totheGbfii'ninentby^thedeductorwithin ^{ten days} afterthe end of

the

month

in

which

such

deduction' is ^, made, ⁱⁿ

sucli manneras

may ^be

prescribed. shire

deductdr

shall furnish^tothe

deducted ^a

certificate I_.'\^'

"3 mentioning therein

theeontract value, ^rateofdeduction, '

amount deducted,

amount

paid

to the Government

.

and

such other

particulars

in such manner as

may be

.

prescribed.1

e If

any deductor

fails

to

furnish

to the deductee the certificate,

after

dedusting ^{thetax at}

source, within five

days

of

crediting

the amount

so deducted

to

the '

Governinent, the

deductor

shall ^{pay,bywayofalate} fee; ^{a sum of}one hundred

rupees per day

fi'om ^the

day after the expiry ^{ofsuch five}day period

until^thefailureis rectified,

subject ^toa

maxinmm amount offive

thousand rupees. The

deductee

shall

claim

credit, in

his

electronic

cash ledger, ^ofthetax

deducted^and

reflected^{in the}return^of

,

the

deductor

furnished

under

sub-section

(3)

of section A '

39, ⁱⁿsuchmanner

as

may

be

prescribed.

(6)

(7)

,,

{8) If any deductor

fails

to pay

to the Government the amount

deducted as tax

under

sub-section

(1),

he shall pay

interest ⁱⁿ

accordance with the

provisions

of

sub- section

(1)

ofsection

50,

in

addition to the

amount

oftax _

deducted. The determination of the

amountin default under this section

shall

bemade' in

the

manner

specified' insection '23 ^or

section ^74. The

refund to the

deductor or the deductee; arismg

on account

ohmor erroneous deduction

shah be

dealt withⁱⁿ

aceordance

With

the provisions of

section

54:

,1:

Pfofided that

norefiind'tothe deduCtor shall be granted.

if the amdiint deductedhas

been credited to

the

electromc

cash

ledger of the

deductee.

52. a)

67

Notwithstandmg anything ^{to the}

contrarycontainedⁱⁿ this Act, emery electronic cogamerce operator (hereafter in ,this

section;refeeied ^toas

the "operator"),

not

being an

agent: shall celleet.Mount

calculated

at

such <

rate^not

execedingunease:

cent, ^as

may be aetified ^on the

recommen- myelitlie Council. ^{of. the net}

value :Qfataxable supplies spade through ^it

by other

suppliers ^' where the

consideration

with respect to

such

supplies is to

be

collected

by

the

operator Explanation~For

thepurposesof ^this

sub-section,the ;

"net value

of

taxable supplies".

shall meanthe aggregatevalueof, taxable

supplies

of

goods

or

services

or both, other

thawhervices notified under

sub-section

(5)

of section

9,

made during any month, by ^all

registered persons

through ^the

operator

reduced

by ^the aggregate

value^of

taxable

supplies

returned

to

the suppliers

timingthe

said

month

'

(2) Thepower to collect the amount specifiedⁱⁿ

sub-section 71(1) shall ^be

without

prejudice to^any

other ^{modeofX7 "} recovery from

the

operator. '

(3)

,(4)

—

if?) The

amount collected under

sub-section ⁽1) shall^be paid ^{to the}

Government

by the operator

within^ten

days after ^theend

of ^the

mqiithⁱⁿ

which such

collection^is made,"ⁱⁿ

such manner

as

may ^be

prescribed Every

operator^who

collects ^the

amount specified ⁱⁿ sub- section11)

Shall

furnish^a

statement,

electronically, iicontaming file details ^of

Outward supphes ^of

goods for

Services ^or;both effected

thrpugh ^it.

including ^the

V,

supplies

of goods

or

services or bOth returned through

it, and the amount

collected under siib- Section

(1)

during

a month, ^{in such formand}manner^asmay

be prescribed, Within ten

days

after

the end of such

month 1 Every operator who collects

the

amount

specified ⁱⁿ sub-section

(1) shall

fiirilish

an

annual

statement, electronically, ^con

"

,

i the

details

of

outward supplies ^of

goods

or serVices,or both

effected

through it,

including the

sup hes

(ifg

or

services ^orboth' returned

thrbugh.

if d the amount

colleCtéd

under

the i ^1saidsub-section during^the

financialyear, ^insuch

form'6 and

manner

as

may be prescribed,

bef6r'é the

thirty first day ^of

December following ^the

endof such

financial year.

Collection ^oftaxat source.

(6)

68

If any operator

after

furnishing ^a

statement under sub-section

('4)

'discemrs

ahyomiséitmi'br

incorrect particulars

therein,

otherthan

asaieéultfi'af

scrutiny, audit,

insp'éefion ^orenforcement

activity ^{by thetax} auth'oi'ities,

heshall

re'ctifysuch

omission ^orincorrect '

particulars'ⁱⁿ

themem'to befurni'shed^forthemonth 1 ^a

during whieh such omisfieimr

incorrect

peificulars

are

,

-

nonced,

subject to

payment

bf interest. s's*specified

in '2

sub- section

(1)

ofsectionSO' Provided that ^nosuchrectification ^ofany

(mission ^or incorrect particulars

shall

he allowed alter the due

datefojr

flirtiilshihg of statement^forthe means: ^of

September

following ^theend

of ^the finandahyear ^ortheaetuiildate

offurnishing

ofthe

relevantannual statement,

whichever i§iétlrher =

'

"

"(7) ^The

supplier

who ^has

supplied the'goods ^hr

services orboththroughtheoperatorshahclaimcredihinhis electronic cash

ledger,

of the

amount

collected

and reflectediiithe

statementoftheoperatorfumishedunder sub-seetibn

(4), ⁱⁿ

webmanner ^as

maybe

prescribed '

Will

The details

of supplies

finished byevery operator

under '

'

sub-section(4)

shall ^bematched^withthe

corresponding '

"details ^ofoutward Supplies

furnished ^bytheconcerned iihder ^thisActin

such manner ^and within suchtime ^as

maybe prescribed. Where ^thedetails bf-butwatd

supplies furhished^bythe operator hithersub-section ^(4)do

notmatch ^{with the} corresponding details

furnished^bythe

supplier

under section 37, the

discrepancy shall

be

c0mmunicated ^to3 bothpersohs ^in.

such

mannerand

within ^{Suchtime as}

(10)

'

may ^be

prescribed The

amount: in

respect

of

which

any discrepancy ^is

7

«communicated under

sub-section

(9) and

which'is

not

"

' rectified by^thesli

pher in his validreturn ^orthe

operator in his

statement

or

the monthin which

discrepancy'^is '

commuted, shallbe added ^to

the putput ^tax

liability '

3f the

said

supplier, where the value

of nutWard supplies furnished

Hy the

aperator

is mare than the

value of

,

outward supplies furnishe hy

thesupplier, in^his

return (for ^the

month succeeding

the

month ⁱⁿ

which^the

"

l

"discrepancy is communicatedainsuch manila

as

may be prescribed.

(11)

(12)

69} line

concerned supplier,' in whose

output

tax

liability any amount ^hasbeenadded under

sub-section

(10),

shall pay the^tax

payableⁱⁿ

respect

of such

supply

along

with interest, ^{at therate}

specified

under sub-section

(1)

of section ^50on

the amount ^so

added

fromthe ^datesuch tax was

due

till the

date'of'd its

payment. Any

authority ^not

below^therankof

Deputy Commissioner may

serve^a

notice, either before or during ^thecourse ^ofany

proceedings

under^this

Act,' requiring ^the

operator to furnish such details

relating 'tO'e— (a)

supplies ^of

goods ^or

services ^{or both}effected through ^such

operator

during any period; ^or '

(b)

stock ^of '

goods ^held

by ^the

suppliers

making supplies through ^such

operator ^{in the}

godowns ^or warehouses,

by

Whatever^name

called,

managed

by such

operators

and declared

as additional

places

of business ^by

such

suppliers, as

maybe

specified In

the

notice. j Explanation:^{—For the}

purposes ^ofthis

section,^the

expression.

(13)

(14)

livery operator ^an

whom^anotice ^hasbeen served

under sub-section

(12)

shall

furnish the

required

information within

fifteen

working days

of

the

date ofservice ofsuch notice.

Anyperson^who

fails ^to

furnish^the

information

required by ^thenotice served under sub-section ⁽¹²⁾

shall, Without

prejudice

to any

action that

may be

taken

under section

122, be liable to a

penalty

which

may extend ^to twenty

five thousand rupees 'concerned

supplier'

shall

mean

the

supplier

of goods

or services

or both

making supplies

through the

operator.

53.

On

utilisation

of

input

tax

credit availed under this Act for payment ^{oftax dues}under^the

Integrated

Goods ^andServices Tax Act' in

accordance With sub~section

(5) of section

49,

as reflected in the

valid return furnished

under

spb-section

(1) ,

of section

39,

the

amount

collected as State tax shall stand reduced

by

an amount

equal

to

such

credit so utilised and the State Government shall

transfer an

amount

equal

to the amount ^so

reduced ^{from the}

State ^taxaccount ^tothe

integrated ^, tax account

in

such manner and

within

such

time

as

may

be prescribed. Transfer ^of

input ⁱⁿ credit.

460f1947

70

Max: ^1'

54.

(1) Any person dimming

refund

ofany taxand interest paidon suchtaxoranyotheramonntpaidbyhim ^may make an

application

before

the

expiry

oftwo

years from the relevant

date'm mch

Sorm

and

manner ^as

may

be prescribed:

Provided that ^a

registered

person, claiming

refimd ^ofany balance ⁱⁿ

the electronic cash

ledger ^as

per ash—section

(6)

of section49, may

claim ^suchrefund ^inthereturn furnished under section 39'^msuch manner ^as

may be

prescribed.

(2) ^A

specialized agency

ofthe United Nations

Organization

,

«__,

oranyMultilateralFmancialInstitutionandOrganization notified

under ^the

United

Nations (Privileges ^and Immunities) ^Act,

1947, Consulate or

Embassy ^of

foreign countries ^or

any other person ^orclass of persons ^as notified

under

section SSeptitledtoarefimdoftax

paid ^, : byitoninward suppliesofgoodsorservicesorboth, ^, maymakeanapphcafionforsuchrefiindinsuchform andmannerasmaybepresaibeibeforetheexpiryof' six

months

from

the last

day ofthe

quarter'ⁱⁿwhich such supplywasreceived.

(3)

Subject ^tothe" provisions

ofsub—section

(1'0),a registered person may claim refund

of any unutilised

input ^tax :'creditatthe endotanytaxperiod:

Provided that

no refund ^of

unutilised

input ^taxcredit shall^be allowed in cases other

than- (i)' ^zerorated

supplies ^made

Without

payment ^oftax; (ii)

'

where the credit has accumulated ^on

account ofrate of tax on

inputs beinghig'i'ér

than

the^rateof^taxon output supplies

(other ^than

nil rated^or

fully exempt supplies),

except

supplies^oFgoods ^orservices^Or both as

may^benotified

on ^therecommendations of ^the

Council. ^.- Provided fiirther that ^no

refund of unutilised

input ^tax

credit shall be allowed" in

cases where the

goods

exported

out of

India

are subjected ^to

export duty; ^. Provided^{also thatno}

refund ofiinput taxcredit shall ^be

allowed, if

the supplier

of

goods

or

services

or both avails of drawback

or claims refund

of ^the

integrated

tax

paid on

such

supplies.

(4) ^The

application

shall^be

accompanied by— Refundoftax.

71'

(a) ^suchdocumentary

evidenceas may be

prescribed , to

establish that a

refund

is due

to

the

applicant; and

i

an

1

(b) ^such

documentaryw^or

other

evidence

(including the

documents

referred

to ⁱⁿ

section

33)

as the applicant may furnishto establish^{that the}amount of tax

and

interest,

if

any, paid

on

such tax or

any other

amount'paid

in

rélatibn

to

which

such refund is

claimed was

collected

frnm,

or

paid by,

him

and the incidence

ofsuch

taxand

interest

had not been passed ^on

toany

other

person:

'

'

Provided

that

where the

amount claimedas

refund' is

less than two lakhrupees,

it

shall not

be necessary for

the

applicant

to

furnish any

documentary

and

other evidences

but hemay file^a

declaration, based on

the

documentary

or other

evidences

available

with

him, cettifying^thatthe

incidence

ofsuch

tax and

interest

had ^notbeen passed

on if?) any

other person.

(5) ^If,on receipt

ofany^such

application, ^theproper oflicer'is satisfiedthat

the

whole

or

part

oftheamount claimed as refundis

refundable,

he

may

makean

order

accordingly randtheamountsodeterminedshallbecreditedtothe *

Fund

referred

to"insection ^57.

(6)

Notwithstanding anything

contained ⁱⁿ

sub-section (5), ^theproper officer may, ^{inthecase of}any claim^for refund on account of export

of goods

or

services

or both made

by registered persons, other than such

category

.

of-

registered

persons

as

may, be

notified' in

this

behalf, frefund ^{on a}

provisionahbasis,

ninety^per

cent.^ofthe gtotal

amount^so

claimed, excluding the

amount^of'input

(7)

(8)

tax

credit

provisionally

accepted

in such manner and subject ^{to such}

conditions, limitations^and

safeguards ^as may be

prescribedand

thereafter make^an

order under sub-section ^{(5) for}

final settlement ^{of the}

refund

claim after due

verification of documents

furnished by

the applicant The proper officer

shall issue the order under sub- section

(5)

within

sixty

days

from the

date

of

receipt

of ;

application

complete in all respects.

, ^.

Notwithstanding

anything

contained'ⁱⁿ

sub-section ^(5), J the

refundable amount shall, instead

of being credited to

the Fpnd,

be paid ^tothe

applicant, if:

such amount

is *

'7 relatable to ^—

72

(a) ^,refund ^ofmen inputs ^or

input services used ^inthe '

V

'

goods or

services

or both which

are

exported

out of _ (b)v

refund ^ofunutilised

input ^taxcredit

under ^sub— 'Msection('3);: ^'.'_ (c)

refundoftaxpaidonasupplywhichisnotprovid'ed,

,

either

wholly

or

partially,

and for

which

invoice has not been

issued,

or where ^arefund

voucher

has been

issued; (d)

refund ^{of taxin}

pursuance ofsection ^77;. (e). ^the

tan ^and

interest, ^{if any, or any}other

amount paid ^{by the}

applicant.

ifhehad ^not

passed ^onthe incidence ^{ofsuch tax and}

interest

to'any

other

(f) ^{them or}

interest

borne

by 'Suchf'other

class of

applicants

as^the

Government

may, ^ontheH recommendations ^ofthe

Council,

by

notification,

(9)

Natwithstandinganythingto ^the

contrarycontained'in p anyjiidginenndeaeqorderordirectionoftheAppellate 'Tribunalorfanycourtorinanyother

provisions

ofthis Act ^orthe

rulesmadethereunda'orinanyother

law for fliefimebeingmforcenorefimdshallbemadeexcept inaecordancewiththeprovisiom ^ofsub—section^(8). '

(10)

Where any refund ^{is due}

under

sub-Section

(3) ^toa registered

person ^Whohasdefaulted ⁱⁿ

furnishing ^any return ^orwho

is

required ^to

pay anytax,

interest ^or penalty,

which^{hasnot been}

stayed byanycourt,

Tribunal or

Appellate

Authority by

the

specified

date,

the

proper oficer

may— ^. '

'

,

(a)

withhold

payment ^ofrefund

due

until ^{the said} person has furnished

the

return ^or

paid

the

tax; interest ^or

penalty, ^asthe ^case

may be; (b)

deduct ^{from the}refund ^{due,any tax,}interest. '

penalty, ^{feeor any}other

amount which^thetaxable person ^isliable ^{to pay}but

which

remains

unpaid

,

.

under

this

Act or under the

existing

law. Explanation ^':'-Forthe

purpoSes ^ofthis

stib-section,'the'

expression

"specified

date"- shallimean^{the lastdatefor}

filing ^an

2appeal

under this Act. ^- '

(l)

(2)

(ll)

(12)

n (1.3). '

(14)

73

Where an

order giving

rise to a

refund

is the

subject matter ofan

appeal or further

proceedings

or

where any other

proceedings

under

this Act is

pending

and the ^» Commissioner^is

ofthe

opinion^thatgrant

ofsuch

refund is

likely to adversely

affect

the

revenue

in the said

appeal or

other

proceedings

onaccount of malfeasance

or fraud committed, ^hemay, after

giving the taxable person ^an opportunity^ofbeing

heard,

withhold ^therefund ^tillsuch time ^as

he may determine Where ^a

refund ^is

withheld under

sub-section (11), the taxable person shall.

notwithstanding anything contained

in

section

56,

be

entitled

to

interest

at such rate

not

exceeding

six

per cent.

as

may be

notified on the recommendations of the

Council,

ifas

a

result of the appeal ^or

further

proceedings ^hebecomes entitled ^to refund. ^{, .}

Nomhstmdmg anything ^tothe

contrary

contained ⁱⁿ this

section,

the

amount

of

advance'tax

deposited by

a casual taxable person ^{or a}

non-resident taxable

person '

under suB~seCtion (2)

ofsection

27,

shall not be refunded unlesssirchpersonhasinrespectoftheentireperiod .torwhidithecertificateofregistrationgrantedtohim had remained' an

force,

furnished

all

the returns

required under section

39.

Notwithstanding anything

contained^inthissection, ^no refund'under

sub—section (5)

or sub-section

(6)

shall be

paid

to an

applicant,

if

the

amount is less

than^one thousaa'd

rupees.

,

Explanation:-^Forthe

purposes-of ^this

section;—

"retaind"

includes refund^{oftax on}

inputs ^or

input

services:

used inthe

goods ^orservices^orbothwhich^are

exported ^out of

India,

or refund of tax on the

supply

of

goods

regarded as deemed

exports,

or refund of unutilised

input

tax

credit

as

.

provided

under

sub-section

(3).

Hrelevant'date

means ^-

(a) ^inthecaseofgoods exported ^outof

India

where^arefund , of tax

paid

is available

in respect

of

inputs

or

input ; services

usedin such goods,—

(i) ^{if the}

goods ^are

exported by ^{sea or air, the}date^on which the

ship

or

the

aircraftin

which

such

goods are

loaded.

leaves

India;

or '

74

(ii)? ^ifthe

goods ^are

exported ^by

land, ^{the dateon}which such

goods

pass^the

frontier; or

1' (iii) if the

goods ^are

exported

by post,

the

date of (b)

(c)

'

despatch ^ofgoods ^{by the}

Post

Ofice concerned ^toa place

outside Tndin; _

in the ^caseof

supply

of

goods regarded ^asdeemed exports

where ^arefund^{of tax}

paid'^isavailable'ⁱⁿ

respect ofthegoodnthedateonwhich-thereturnrelatingto '

such

deemed

exports is

filed; in

the

case of services

exportedlnut of India

where ^a refund of ^tax

paid ^isavailable ⁱⁿ

respect0t

inputs ^or input

services

used'^insuch

services, ^{thedate of-—}

(i) receipt^ofpayment ⁱⁿconvertible foreign

exchange, where the

supply

Of

services had

been

Completed q

prior

to

the

receipt

of such

payment, or

.

7

1

(ii)

7

issueofmvome, where

payment

fiirtheservices

had to

(e) (f)

(8)

(hi been received'¹ⁿ

advance

priorto

the date

of' issue of ^theinvoice; in ^casewhere^{the tax}

becomes refundable ^asa consequence ^of

judgment,

decree, order^or

direction ^of'I the

Appellate Authority, Appellate Tribunal ^or

any

court, the date of

communication

of such judgment, decree, order ^or

direction; in

the

case of

refund ofunutilised

input

taxcreditunder sub-section

(3),

the end of the

financial year in which

such

claim^for

refund

arises; '

'

in the case where ^taxis

paidprovisionally

under this

Act or

therules

made

thereunder,

the date

of

adjustment

of tax after

the final assessment

thereof; in the case

of^a

person,

other than

the

supplier, the date of

receipt

of

goods ^orservices ^or

both by

such person; and

in any

other

case, the'date of payment

pf ^tax.

460f1947

75

55.

The

Government may,

on

the

recommendations of the Council,

by notification,

specify any

specialized agency of the United Nations

Organizatibn

or

any Multilateral

Financial Institution and

Organization

notified

under the

United Nations

(Privileges

and

Immunities) Act, 1947, Consulate or Embassy ^of

foreign

countries

Many

other person Or

class

of V persons

as

may

be

Specified

in

this

behalf, who shall,

subject to

such

conditions and

restrictions

asmay be prescribed,

be entitled to

claim a

refund

oftaxes

paid

on

tliéiiibtified supplies ofgoods ^or

services^{or both}received

by

them?

'

56.

If

any

tax

ordered to

be

refunded under

sub—section

(5)

of section

54 to

any

applicant

is not

refunded within

sixty' days from the

date of receipt

of application

under

sub-section

(1)

of that

section,

interest at

such rate

not

exceeding

six

per

cent. as may ^be

specified ^{in the}

notification issued

by

the

Government on

the

recommendations of

the

Council shall be

payable

in' respect ^{of such}refund ^fromthe

date

immediately

after the expiry ^of

sixty

days ^fromthe

date of

receipt

of

application under ^thesaid

sub-section till

the date ofrefund ofsuch tax:

Provided

that

where any claim of refund arises

frOm an order

passed

by

an

adjudicafing authority

or

Appellate

Authority or

Appellate

Tribunal or

Court

which has attained

finality

and the same

is

not refunded within

sixty

days

from the date of

receipt

of application

filed

consequent

to

such

order, interest

at

such rate

not exceeding ^nine

per

cent.^as

may^benotified on

the

recommendations'of

the Council shall be

payable

in

respect

of such

refund

from the date

immediately

after the

expiry

of

sixty

days

from the date of receipt ^ofapplication ^tillthe

date of

refund Explanation:~ For ^thepurposes of

this section,

where any order of refund is

made

by

an

Appellate Authority, Appellate

Tribunal or

any court

against

an

order

of the proper oflicer under

sub-section

(5)

of section

54,

the order

passed

by

the

Appellate

Authority, Appellate , Tribunal

orby

the court

shall be

deemed to

be an

order

passed

under the said

sub~section

(S).

'

57.

'lhe Government shall constitute a

Fund,

to

be

called the Consumer Welfare Fund and

there shall be

credited to the Fund,— ^-

(a) ^theamount

of tax

referred to in

sub—section (5),of '

section

54;

.

.

(b) any

income

frominvestment

of the amount

credited to the

Fund;

and .

(c) ^suchother monies

received

by

it, in

such manner as

may be

prescribed. Refimdincertainmes. Interest on

delayed refunds. Consumer Welfare Fund.

58.

(l)

(2)1

76

All sums credited ^totheFund shall

be utilised by

the Government for the welfare of

the

consumersⁱⁿsuch manner ^as

may be

prescribed. ^.- -

The

Government ^orthe

authority

specified

by: ^itshall maintainproperanduseparateaccountandotherrelevant recordsinrelationtotheFundandprepmanan'nual statement of accounts insuch form^as

maybe prescribed in consultation

with

the

Compnnller

and

Auditor-' General^of

India. Utilisation ofFund.

77

59.

77

CHAPTER— XII

.

ASSESSMENT

Every

registered person

shall

-self ^thetaxes

payable under this Act

and

furnish

{£63m for

each tax

period

as

(1)

Subject to^theprovisions ^of

sub-section3§(2),

where ^the

I

(2)

(3)

specified

under section^39. taxable person^is

unable^to

determine ^the

value ^ofgoods

.

or services or both

or

determine the rate oftax

applicable '

thereto, he may request ^the

proper officer111 writing giving reasons^for

payment ^oftaxona

provisiOnal

basis and

the proper officer

shall

pass

an

order,

within a period ^not

later^than

ninety days ^{fromthedate of}

receipt of

such

request, allowingpayment

of

tax

on

provisional basis ^at

such

rate

or on such value as

may be

specified

by The

payment ^oftax6n

provisional basis^maybe

allowed, ifthe

taxable person

executes

abond in

such ^formas

may be

prescribed, ^andwith

such

"surety ^or

security ^asthe -

proper officer may deem

fit.

binding

the taxableperson for

payment

of the difference

between

the amount^of '

tax as

may be

finally

assessed and

the

amount of

tax prow'sionally

assessed. 'ihe

properofiicer

shall,

within^a

period^not

exceeding ^six months from ^thedateofthe communication ofthe

order issued

under

sub-section

( 1), pass the final assessment order after

taking ^intoaccount such information ^as

may be

required ^for

finalizing ^theassessment:

Provided that

the'period specified'ⁱⁿ

this sub-section may, on

sufficient

cause

being

shown and for reasons to be recorded in

writing,

be extended

by

the

Joint

Commissioner ^or

Additional Commissioner for^a

further

period ^not

exceeding ^six

months

and

by the

Commissioner for

such

further

period

not

exceeding four years.

(4) The

registered

person shall^be

liable ^to

pay

interest^on any ^tax

payable ^{on the}

supply ^ofgoods ^or

services^both under

provisional assessment

but not

paid ^onthe due date' specified

under sub-section

(7)

of section³⁹or the rules made

thereunder, ^atthe^rate

specified

under sub- section

(1)

ofsection

50,

from

the first

day

after the due date ^of

payment ^{of taxin}

respect ^of

the ^said

supply ^Of goods ^orservices ^{or bothtillthedate}ofactual

payment. whether

such

amount^is

paid

before ^orafter^theissuance oforder

for final assessment. Self-Assessment. Provisional Assessment.

61.

62.

(5)

(1)

(2)

,

(3)

(1)

(2)

78

Where ^the

registered person

is entitled to a

refund consequent ^totheorder^forfinal assessment under^sub- section

(3),

subject

to

the

provisions

of

sub-section

(8)

ofsection54, interestshallbepaidonsuchrefimdasprovided in

section56. The proper officer may

scrutinize the return

and

related particulars

furnished

by ^the

registered person ^to

verify the correctness

of the return and

inform him of the _

discrepancies

noticed,

if

any,

in

such manner as

may

be prescribed ^{and seek his}

explanation

thereto. Incasetheexplamflonisfoundacceptabletheregistered person shall be

informed

accordingly

and ^nofurther '

actionshallbetakeninthisregard.' '

In caseno

satisfactory explanationis

firrnished within aperiodofthirtydaysofbeinginformedbytheproper officerorsuchfirrtherperiodasmaybepermittedby himorwhaethemgistaedpersonafieraccepting thedisaepandmfailstotakethecorrectivemeasure inhisreturn

forthe'rnonth

in

whichthediscrepancy is

accepted,

the proper oilicer may

initiate

appropriate action

including

those under section

65

or

section660r section67,

orproceedtodeterminethetaxandother

"

duesundersection73orsection74.

"Notwithstanding anything ^tothe

contrary contained ⁱⁿ section 73 or

section

74,

where

a

registered person fails to furnish the return under section39or section

45,

even after the

service

ofa

notice under section

46,

the proper officer may

proceed ^toassess^the

tax'liability

of^{the said} '

person ^tothe best of his

judgment taking ^intoaccount all

the

relevant

material

which is available or which he has

gathered

and issue an

assessment order

within

a period

offive years^{fromthe date}

specified

under section

44

for

finishing

of

the annual return for the financial '

year to which thetax^nOt

paid

relates. Where the

registered

person furnishes a valid return within

thirty days

of the service

of the assessment order runder

sub-section

(1),

the said assessment order

shall

"

be

deemed to have

been

withdrawn

but

the liability

for payment ^ofinterest

under sub—section

(1) ^ofsection⁵⁰ or for payment oflate

fee under section

47

shall continue. Scrutinyofreturns Assessment ofnon-filers of returns.