THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 
____________ 

ARRANGEMENT OF SECTIONS 

Last updated: 29-6-2021 

CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 
ADMINISTRATION 

3.  Appointment of officers. 
4.  Authorisation of officers of State tax or Union territory tax as proper officer in certain 

circumstances. 

CHAPTER III 
LEVY AND COLLECTION OF TAX 

5.  Levy and collection. 
6.  Power to grant exemption from tax. 

CHAPTER IV 
DETERMINATION OF NATURE OF SUPPLY 

7.  Inter-State supply. 
8.  Intra-State supply. 
9.  Supplies in territorial waters. 

CHAPTER V 
PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH 

10.  Place of supply of goods other than supply of goods imported into, or exported from India. 
11.  Place of supply of goods imported into, or exported from India. 
12.  Place of supply of services where location of supplier and recipient is in India. 
13.  Place of supply of services where location of supplier or location of recipient is outside India. 
14.  Special provision for payment of tax by a supplier of online information and database access or 

retrieval services. 

CHAPTER VI 
REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST 

15.  Refund of integrated tax paid on supply of goods to tourist leaving India. 

16.  Zero rated supply. 

CHAPTER VII 
ZERO RATED SUPPLY 

CHAPTER VIII 
APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS 

17.  Apportionment of tax and settlement of funds. 
17A. Transfer of certain amounts. 
18.  Transfer of input tax credit. 
19.  Tax wrongfully collected and paid to Central Government or State Government. 

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CHAPTER IX 
MISCELLANEOUS 

SECTIONS 

20.  Application of provisions of Central Goods and Services Tax Act. 
21.  Import of services made on or after the appointed day. 
22.  Power to make rules. 
23.  Power to make regulations. 
24.  Laying of rules, regulations and notifications. 
25.  Removal of difficulties. 

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THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017  

ACT NO. 13 OF 2017 

An  Act  to  make  a  provision  for  levy  and  collection  of  tax  on  inter-State  supply  of  goods  or 
services or both by the Central Government and for matters connected therewith or incidental 
thereto. 

BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:—  

[12th April, 2017.]  

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Integrated  Goods  and 

Services Tax Act, 2017. 

(2) It shall extend to the whole of India except the State of Jammu and Kashmir*. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint: 

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

2. Definitions.—In this Act, unless the context otherwise requires,–– 

(1) “Central Goods and Services Tax Act” means the Central Goods and Services Tax Act, 2017; 

(2) ‘‘central tax” means the tax levied and collected under the Central Goods and Services Tax 

Act; 

(3) “continuous journey” means a journey for which a single or more than one ticket or invoice is 
issued at the same time, either by a single supplier of service or through an agent acting on behalf of 
more  than  one  supplier  of  service,  and  which  involves  no  stopover  between  any  of  the  legs  of  the 
journey for which one or more separate tickets or invoices are issued. 

Explanation.––For  the  purposes  of  this  clause,  the  term  “stopover”  means  a  place  where  a 
passenger  can  disembark  either to  transfer to  another  conveyance  or  break  his journey  for a  certain 
period in order to resume it at a later point of time; 

(4) “customs frontiers of India” means the limits of a customs area as defined in section 2 of the 

Customs Act, 1962 (52 of 1962); 

(5)  “export  of  goods”  with  its  grammatical  variations  and  cognate  expressions,  means  taking 

goods out of India to a place outside India; 

(6) “export of services” means the supply of any service when,–– 

(i) the supplier of service is located in India; 

(ii) the recipient of service is located outside India; 

(iii) the place of supply of service is outside India; 

(iv) the payment for such service has been received by the supplier of service in convertible 

foreign exchange; 2[or in Indian rupees wherever permitted by the Reserve Bank of India]; and 

1. 22nd June, 2017 for sections 1, 2, 3, 14, 20 and 22 vide notification No. G.S.R. 603 (E) dated the 19th June, 2017, see Gazette 
of India, Extraordinary, Part II, sec. 3(i). 

1st  July,  2017  for  sections  4  to  13,  16  to  19,  21,  23  to  25 vide notification  No.  G.S.R.  662(E)  dated  28th  June 

2017, see Gazette of India, Extraordinary, Part II, sec. 3(i).  
* Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and 
Kashmir and the Union territory of Ladakh. 
2. Ins. by Act 32 of 2018, s. 2 (w.e.f. 1-2-2019).  

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(v)  the  supplier  of  service  and  the  recipient  of  service  are  not  merely  establishments  of  a 

distinct person in accordance with Explanation 1 in section 8; 

(7)  “fixed  establishment”  means  a  place  (other  than  the  registered  place  of  business)  which  is 
characterised  by  a  sufficient  degree  of  permanence  and  suitable  structure  in  terms  of  human  and 
technical resources to supply services or to receive and use services for its own needs; 

(8) “Goods and Services Tax (Compensation to States) Act” means the Goods and Services Tax 

(Compensation to States) Act, 2017; 

(9) “Government” means the Central Government; 

(10) ‘‘import of goods” with its grammatical variations and cognate expressions, means bringing 

goods into India from a place outside India; 

(11) ‘‘import of services” means the supply of any service, where–– 

(i) the supplier of service is located outside India; 

(ii) the recipient of service is located in India; and 

(iii) the place of supply of service is in India; 

(12) “integrated tax” means the integrated goods and services tax levied under this Act; 

(13) “intermediary” means a broker, an agent or any other person, by whatever name called, who 
arranges  or  facilitates  the  supply  of  goods  or  services  or  both,  or  securities,  between  two  or  more 
persons, but does not include a person who supplies such goods or services or both or securities on his 
own account; 

(14) “location of the recipient of services” means,–– 

(a)  where  a  supply  is  received  at  a  place  of  business  for  which  the  registration  has  been 

obtained, the location of such place of business; 

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

(c) where a supply is received at more than one establishment, whether the place of business 
or fixed establishment, the location of the establishment most directly concerned with the receipt 
of the supply; and 

(d) in absence of such places, the location of the usual place of residence of the recipient; 

(15) “location of the supplier of services” means,–– 

(a)  where  a  supply  is  made  from  a  place  of  business  for  which  the  registration  has  been 

obtained, the location of such place of business; 

(b)  where  a  supply  is  made  from  a  place  other  than  the  place  of  business  for  which 
registration  has  been  obtained  (a  fixed  establishment  elsewhere),  the  location  of  such  fixed 
establishment; 

(c) where a supply is made from more than one establishment, whether the place of business 
or  fixed  establishment,  the  location  of  the  establishment  most  directly  concerned  with  the 
provision of the supply; and 

(d) in absence of such places, the location of the usual place of residence of the supplier; 

(16)  “non-taxable  online  recipient”  means  any  Government,  local  authority,  governmental 
authority,  an  individual  or  any  other  person  not  registered  and  receiving  online  information  and 
database access or retrieval services in relation to any purpose other than commerce, industry or any 
other business or profession, located in taxable territory. 

Explanation.––For the purposes of this clause, the expression “governmental authority” means an 

authority or a board or any other body,–– 

(i) set up by an Act of Parliament or a State Legislature; or 

(ii) established by any Government, 

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with  ninety  per  cent.  or  more  participation  by  way  of  equity  or  control,  to  carry  out  any  function 
entrusted 1[to a Panchayat under article 243G or] to a municipality under article 243W of the Constitution; 

(17) “online information and database access or retrieval services” means services whose delivery 
is  mediated  by  information  technology  over  the  internet  or  an  electronic  network  and  the  nature  of 
which  renders  their  supply  essentially  automated  and  involving  minimal  human  intervention  and 
impossible to ensure in the absence of information technology and includes electronic services such 
as,–– 

(i) advertising on the internet; 

(ii) providing cloud services; 

(iii)  provision  of  e-books,  movie,  music,  software  and  other 

intangibles 

through 

telecommunication networks or internet; 

(iv) providing data or information, retrievable or otherwise, to any person in electronic form 

through a computer network; 

(v) online supplies of digital content (movies, television shows, music and the like); 

(vi) digital data storage; and 

(vii) online gaming;  

(18) “output tax”, in relation to a taxable person, means the integrated tax chargeable under this 
Act  on  taxable  supply  of  goods  or  services  or  both  made  by  him  or  by  his  agent  but  excludes  tax 
payable by him on reverse charge basis; 

(19)  “Special  Economic  Zone”  shall  have  the  same  meaning  as  assigned  to  it  in  clause  (za)  of 

section 2 of the Special Economic Zones Act, 2005 (28 of 2005); 

(20)  “Special  Economic  Zone  developer”  shall  have  the  same  meaning  as  assigned  to  it  in  
clause  (g)  of  section  2  of  the  Special  Economic  Zones  Act,  2005  (28  of  2005)  and  includes  an 
Authority as defined in clause (d) and a Co-Developer as defined in clause (f) of section 2 of the said 
Act; 

(21) “supply” shall have the same meaning as assigned to it in section 7 of the Central Goods and 

Services Tax Act; 

(22) “taxable territory” means the territory to which the provisions of this Act apply; 

(23) “zero-rated supply” shall have the meaning assigned to it in section 16; 

(24) words and expressions used and not defined in this Act but defined in the Central Goods and 
Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax 
(Compensation to States) Act shall have the same meaning as assigned to them in those Acts; 

(25) any reference in this Act to a law which is not in force in the State of Jammu and Kashmir*, 
shall, in relation to that State be construed as a reference to the corresponding law, if any, in force in 
that State. 

CHAPTER II 

ADMINISTRATION 

3.  Appointment  of  officers.––The  Board  may  appoint  such  central  tax  officers  as  it  thinks  fit  for 

exercising the powers under this Act. 

1. Ins. by Act 32 of 2018, s. 2 (w.e.f. 1-2-2019). 
* Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and 
Kashmir and the Union territory of Ladakh. 

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4.  Authorisation  of  officers  of  State  tax  or  Union  territory  tax  as  proper  officer  in  certain 
circumstances.––Without prejudice to the provisions of this Act, the officers appointed under the State 
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the 
proper officers for the purposes of this Act, subject to such exceptions and conditions as the Government 
shall, on the recommendations of the Council, by notification, specify. 

CHAPTER III 

LEVY AND COLLECTION OF TAX 

5. Levy and collection.––(1) Subject to the provisions of sub-section (2), there shall be levied a tax 
called the integrated goods and services tax on all inter-State supplies of goods or services or both, except 
on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the 
Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by 
the  Government  on  the  recommendations  of  the  Council  and  collected  in  such  manner  as  may  be 
prescribed and shall be paid by the taxable person: 

Provided  that  the  integrated  tax  on  goods  imported  into  India  shall  be  levied  and  collected  in 
accordance with the provisions of section 3 of the Customs Tariff Act, 1975 (51 of 1975) on the value as 
determined  under  the  said  Act  at  the  point  when  duties  of  customs  are  levied  on  the  said  goods  under 
section 12 of the Customs Act, 1962 (52 of 1962). 

(2) The integrated tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly 
known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be 
notified by the Government on the recommendations of the Council. 

(3) The Government may, on the recommendations of the Council, by notification, specify categories 
of  supply  of  goods  or  services  or  both,  the  tax  on  which  shall  be  paid  on  reverse  charge  basis  by  the 
recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient 
as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. 

1[(4) The Government may, on the recommendations of the Council, by notification, specify a class of 
registered  persons  who  shall,  in  respect  of  supply  of  specified  categories  of  goods  or  services  or  both 
received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply 
of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the 
person liable for paying the tax in relation to such supply of goods or services or both.] 

(5) The Government may, on the recommendations of the Council, by notification, specify categories 
of services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator if 
such  services  are  supplied  through  it,  and  all  the  provisions  of  this  Act  shall  apply  to  such  electronic 
commerce  operator  as  if  he  is  the  supplier  liable  for  paying  the  tax  in  relation  to  the  supply  of  such 
services: 

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

Provided further that where an electronic commerce operator does not have a physical presence in the 
taxable  territory  and  also  does  not  have  a  representative  in the said territory,  such  electronic  commerce 
operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall 
be liable to pay tax.  

6. Power to grant exemption from tax.–– (1) Where the Government is satisfied that it is necessary 
in  the  public  interest  so  to  do,  it  may,  on  the  recommendations  of  the  Council,  by  notification,  exempt 
generally, either absolutely or subject to such conditions as may be specified therein, goods or services or 
both of any specified description from the whole or any part of the tax leviable thereon with effect from 
such date as may be specified in such notification. 

1. Subs. by Act 32 of 2018, s. 3, for sub-section (4) (w.e.f. 1-2-2019). 

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(2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the 
recommendations  of  the  Council,  by  special  order  in  each  case,  under  circumstances  of  an  exceptional 
nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax 
is leviable. 

(3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying 
the  scope  or  applicability  of  any  notification  issued  under  sub-section  (1)  or  order  issued  under  
sub-section (2), insert an Explanation in such notification or order, as the case may be, by notification at 
any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), 
and every such Explanation shall have effect as if it had always been the part of the first such notification 
or order, as the case may be. 

Explanation.––For  the  purposes  of  this  section,  where  an  exemption  in  respect  of  any  goods  or 
services  or  both  from  the  whole  or  part  of  the  tax  leviable  thereon  has  been  granted  absolutely,  the 
registered  person  supplying  such  goods  or  services  or  both  shall  not  collect  the  tax,  in  excess  of  the 
effective rate, on such supply of goods or services or both. 

CHAPTER IV 

DETERMINATION OF NATURE OF SUPPLY 

7.  Inter-State  supply.––(1)  Subject  to  the  provisions  of  section  10,  supply  of  goods,  where  the 

location of the supplier and the place of supply are in–– 

(a) two different States; 

(b) two different Union territories; or 

(c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State 

trade or commerce. 

(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, 

shall be treated to be a supply of goods in the course of inter-State trade or commerce. 

(3) Subject to the provisions of section 12, supply of services, where the location of the supplier and 

the place of supply are in–– 

(a) two different States; 

(b) two different Union territories; or 

(c) a State and a Union territory, shall be treated as a supply of services in the course of inter-State 

trade or commerce. 

(4) Supply of services imported into the territory of India shall be treated to be a supply of services in 

the course of inter-State trade or commerce. 

(5) Supply of goods or services or both,–– 

(a) when the supplier is located in India and the place of supply is outside India; 

(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or 

(c)  in  the  taxable  territory,  not  being  an  intra-State  supply  and  not  covered  elsewhere  in  this 
section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or 
commerce. 

8.  Intra-State  supply.––(1)  Subject  to  the  provisions  of  section  10,  supply  of  goods  where  the 
location  of the  supplier  and  the  place  of supply  of  goods are  in the  same  State  or  same  Union territory 
shall be treated as intra-State supply: 

Provided that the following supply of goods shall not be treated as intra-State supply, namely:–– 

(i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit; 

(ii) goods imported into the territory of India till they cross the customs frontiers of India; or 

(iii) supplies made to a tourist referred to in section 15. 

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(2) Subject to the provisions of section 12, supply of services where the location of the supplier and 
the place of supply of services are in the same State or same Union territory shall be treated as intra-State 
supply: 

Provided that the intra-State supply of services shall not include supply of services to or by a Special 

Economic Zone developer or a Special Economic Zone unit. 

Explanation 1.––For the purposes of this Act, where a person has,–– 

(i) an establishment in India and any other establishment outside India; 

(ii) an establishment in a State or Union territory and any other establishment outside that State or 

Union territory; or 

(iii)  an  establishment  in  a  State  or  Union  territory  and  any  other  establishment 1***  registered 

within that State or Union territory, 

then such establishments shall be treated as establishments of distinct persons. 

Explanation 2.––A person carrying on a business through a branch or an agency or a representational 

office in any territory shall be treated as having an establishment in that territory. 

9. Supplies in territorial waters.––Notwithstanding anything contained in this Act,–– 

(a) where the location of the supplier is in the territorial waters, the location of such supplier; or 

(b) where the place of supply is in the territorial waters, the place of supply, 

shall,  for  the  purposes  of  this  Act,  be  deemed  to  be  in  the  coastal  State  or  Union  territory  where  the 
nearest point of the appropriate baseline is located. 

CHAPTER V 

PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH 

10. Place of supply of goods other than supply of goods imported into, or exported from India.––
(1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall 
be as under,–– 

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by 
any other person, the place of supply of such goods shall be the location of the goods at the time at 
which the movement of goods terminates for delivery to the recipient; 

(b)  where  the  goods  are  delivered  by  the  supplier  to  a  recipient  or  any  other  person  on  the 
direction  of  a  third  person,  whether  acting  as  an  agent  or  otherwise,  before  or  during  movement  of 
goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed 
that the said third person has received the goods and the place of supply of such goods shall be the 
principal place of business of such person; 

(c)  where  the  supply  does  not  involve  movement  of  goods,  whether  by  the  supplier  or  the 
recipient,  the  place  of  supply  shall  be  the  location  of  such  goods  at  the  time  of  the  delivery  to  the 
recipient; 

(d)  where the  goods  are  assembled  or installed  at site,  the  place  of supply  shall be  the place  of 

such installation or assembly; 

(e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or 

a motor vehicle, the place of supply shall be the location at which such goods are taken on board. 

(2) Where the place of supply of goods cannot be determined, the place of supply shall be determined 

in such manner as may be prescribed. 

11.  Place  of  supply  of  goods  imported  into,  or  exported  from  India.––The  place  of  supply  of 

goods,–– 

(a) imported into India shall be the location of the importer; 

1. The words “being a business vertical” omitted by Act 32 of 2018, s. 4 (w.e.f 1-2-2019). 

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(b) exported from India shall be the location outside India. 

12.  Place  of  supply  of  services  where  location  of  supplier  and  recipient  is  in  India.––(1)  The 
provisions of this section shall apply to determine the place of supply of services where the location of 
supplier of services and the location of the recipient of services is in India. 

(2) The place of supply of services, except the services specified in sub-sections (3) to (14),–– 

(a) made to a registered person shall be the location of such person; 

(b) made to any person other than a registered person shall be,–– 

(i) the location of the recipient where the address on record exists; and 

(ii) the location of the supplier of services in other cases. 

(3) The place of supply of services,–– 

(a)  directly  in  relation  to  an  immovable  property,  including  services  provided  by  architects, 
interior  decorators,  surveyors,  engineers  and  other  related  experts  or  estate  agents,  any  service 
provided by way of grant of rights to use immovable property or for carrying out or co-ordination of 
construction work; or 

(b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, 

by whatever name called, and including a house boat or any other vessel; or 

(c)  by  way  of  accommodation  in  any  immovable  property  for  organising  any  marriage  or 
reception or matters related thereto, official, social, cultural, religious or business function including 
services provided in relation to such function at such property; or 

(d) any services ancillary to the services referred to in clauses (a), (b) and (c), 

shall be the location at which the immovable property or boat or vessel, as the case may be, is located or 
intended to be located: 

Provided that if the location of the immovable property or boat or vessel is located or intended to be 

located outside India, the place of supply shall be the location of the recipient. 

Explanation.––Where the immovable property or boat or vessel is located in more than one State or 
Union territory, the supply of services shall be treated as made in each of the respective States or Union 
territories,  in  proportion  to  the  value  for  services  separately  collected  or  determined  in  terms  of  the 
contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such 
other basis as may be prescribed. 

(4)  The  place  of  supply  of  restaurant  and  catering  services,  personal  grooming,  fitness,  beauty 
treatment, health service including cosmetic and plastic surgery shall be the location where the services 
are actually performed. 

(5) The place of supply of services in relation to training and performance appraisal to,–– 

(a) a registered person, shall be the location of such person; 

(b) a person other than a registered person, shall be the location where the services are actually 

performed. 

(6)  The  place  of  supply  of  services  provided  by  way  of  admission  to  a  cultural,  artistic,  sporting, 
scientific, educational, entertainment event or amusement park or any other place and services ancillary 
thereto, shall be the place where the event is actually held or where the park or such other place is located. 

(7) The place of supply of services provided by way of,— 

(a)  organisation  of  a  cultural,  artistic,  sporting,  scientific,  educational  or  entertainment  event 
including supply of services in relation to a conference, fair, exhibition, celebration or similar events; 
or 

(b) services ancillary to organisation of any of the events or services referred to in clause (a), or 

assigning of sponsorship to such events,–– 

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(i) to a registered person, shall be the location of such person; 

(ii) to a person other than a registered person, shall be the place where the event is actually 
held  and  if  the  event  is  held  outside  India,  the  place  of  supply  shall  be  the  location  of  the 
recipient. 

Explanation.––Where  the  event  is  held  in  more  than  one  State  or  Union  territory  and  a 
consolidated amount is charged for supply of services relating to such event, the place of supply of 
such services shall be taken as being in each of the respective States or Union territories in proportion 
to  the  value  for  services  separately  collected  or  determined  in  terms  of  the  contract  or  agreement 
entered into in this regard or, in the absence of such contract or agreement, on such other basis as may 
be prescribed.  

(8) The place of supply of services by way of transportation of goods, including by  mail or courier 

to,–– 

(a) a registered person, shall be the location of such person; 

(b) a person other than a registered person, shall be the location at which such goods are handed 

over for their transportation. 

1[Provided that where the transportation of goods is to a place outside India, the place of supply 

shall be the place of destination of such goods.] 

(9) The place of supply of passenger transportation service to,— 

(a) a registered person, shall be the location of such person; 

(b) a person other than a registered person, shall be the place where the passenger embarks on the 

conveyance for a continuous journey: 

Provided that where the right to passage is given for future use and the point of embarkation is not 
known at the time of issue of right to passage, the place of supply of such service shall be determined 
in accordance with the provisions of sub-section (2). 

Explanation.––For  the  purposes  of  this  sub-section,  the  return  journey  shall  be  treated  as  a 
separate journey, even if the right to passage for onward and return journey is issued at the same time. 

(10) The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a 
motor  vehicle,  shall  be the  location  of  the  first  scheduled  point  of  departure  of that  conveyance for the 
journey. 

(11) The place of supply  of  telecommunication  services including  data  transfer, broadcasting,  cable 

and direct to home television services to any person shall,— 

(a)  in  case  of  services  by  way  of  fixed  telecommunication  line,  leased  circuits,  internet  leased 
circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable 
connection or dish antenna is installed for receipt of services; 

(b)  in  case  of  mobile  connection  for  telecommunication  and  internet  services  provided  on  
post-paid  basis,  be  the  location  of  billing  address  of  the  recipient  of  services  on  the  record  of  the 
supplier of services; 

(c) in cases where mobile connection for telecommunication, internet service and direct to home 

television services are provided on pre-payment basis through a voucher or any other means,–– 

(i) through a selling agent or a re-seller or a distributor of subscriber identity module card or 
re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of 
the supplier at the time of supply; or 

(ii) by any person to the final subscriber, be the location where such prepayment is received 

or such vouchers are sold; 

1. The proviso ins. by Act 32 of 2018, s. 5 (w.e.f. 1-2-2019). 

10 

                                                      
(d) in other cases, be the address of the recipient as per the records of the supplier of services and 

where such address is not available, the place of supply shall be location of the supplier of services: 

Provided that where the address of the recipient as per the records of the supplier of services is not 

available, the place of supply shall be location of the supplier of services: 

Provided further that if such pre-paid service is availed or the recharge is made through internet 
banking or other electronic mode of payment, the location of the recipient of services on the record of 
the supplier of services shall be the place of supply of such services.  

Explanation.––Where  the  leased circuit is  installed in  more  than  one  State  or  Union  territory  and  a 
consolidated amount is charged for supply of services relating to such circuit, the place of supply of such 
services shall be taken as being in each of the respective States or Union territories in proportion to the 
value for services separately collected or determined in terms of the contract or agreement entered into in 
this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. 

(12) The place of supply of banking and other financial services, including stock broking services to 

any person shall be the location of the recipient of services on the records of the supplier of services: 

Provided that if the location of recipient of services is not on the records of the supplier, the place of 

supply shall be the location of the supplier of services. 

(13) The place of supply of insurance services shall,–– 

(a) to a registered person, be the location of such person; 

(b) to a person other than a registered person, be the location of the recipient of services on the 

records of the supplier of services. 

(14) The place of supply of advertisement services to the Central Government, a State Government, a 
statutory  body  or  a local authority  meant  for the  States  or  Union  territories  identified in the  contract or 
agreement shall be taken as being in each of such States or Union territories and the value of such supplies 
specific  to  each  State  or  Union  territory  shall  be  in  proportion  to  the  amount  attributable  to  services 
provided by way of dissemination in the respective States or Union territories as may be determined in 
terms  of  the  contract  or  agreement  entered  into  in  this  regard  or,  in  the  absence  of  such  contract  or 
agreement, on such other basis as may be prescribed. 

13.  Place  of  supply  of  services  where  location  of  supplier  or  location  of  recipient  is  outside 
India.––(1) The provisions of this section shall apply to determine the place of supply of services where 
the location of the supplier of services or the location of the recipient of services is outside India. 

(2) The place of supply of services except the services specified in sub-sections (3) to (13) shall be the 

location of the recipient of services: 

Provided that where the location of the recipient of services is not available in the ordinary course of 

business, the place of supply shall be the location of the supplier of services. 

(3) The place of supply of the following services shall be the location where the services are actually 

performed, namely:— 

(a) services supplied in respect of goods which are required to be made physically available by 
the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of 
services in order to provide the services: 

Provided  that  when  such  services  are  provided  from  a  remote  location  by  way  of  electronic 
means,  the  place  of  supply  shall  be  the  location  where  goods  are  situated  at  the  time  of  supply  of 
services: 

1[Provided further that nothing contained in this clause shall apply in the case of services supplied 
in respect of goods which are temporarily imported into India for repairs or for any other treatment or 

1. Subs. by Act 32 of 2018, s. 6 for the second proviso (w.e.f. 1-2-2019) 

11 

                                                      
 
 
process  and are  exported  after  such  repairs  or treatment  or  process  without  being  put  to  any  use  in 
India, other than that which is required for such repairs or treatment or process;]  

(b) services supplied to an individual, represented either as the recipient of services or a person 
acting  on  behalf of the  recipient,  which require  the  physical  presence of  the  recipient  or  the  person 
acting on his behalf, with the supplier for the supply of services. 

(4) The place of supply of services supplied directly in relation to an immovable property, including 
services  supplied in  this regard  by  experts  and  estate  agents,  supply  of  accommodation  by  a  hotel, inn, 
guest  house,  club  or  campsite,  by  whatever  name  called,  grant  of  rights  to  use  immovable  property, 
services  for  carrying  out  or  co-ordination  of  construction  work,  including  that  of  architects  or  interior 
decorators, shall be the place where the immovable property is located or intended to be located. 

(5)  The  place  of  supply  of  services  supplied  by  way  of  admission  to,  or  organisation  of  a  cultural, 
artistic,  sporting,  scientific,  educational  or  entertainment  event,  or  a  celebration,  conference,  fair, 
exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place 
where the event is actually held. 

(6) Where any services referred to in sub-section (3) or sub-section (4) or sub-section (5) is supplied 
at  more  than  one  location,  including  a  location  in  the  taxable  territory,  its  place  of  supply  shall  be  the 
location in the taxable territory. 

(7) Where the services referred to in sub-section (3) or sub-section (4) or sub-section (5) are supplied 
in more than one State or Union territory, the place of supply of such services shall be taken as being in 
each of the respective States or Union territories and the value of such supplies specific to each State or 
Union territory shall be in proportion to the value for services separately collected or determined in terms 
of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, 
on such other basis as may be prescribed. 

(8)  The  place  of  supply  of  the  following  services  shall  be  the  location  of  the  supplier  of  services, 

namely:–– 

(a) services supplied by a banking company, or a financial institution, or a non-banking financial 

company, to account holders; 

(b) intermediary services; 

(c)  services  consisting  of  hiring  of  means  of  transport,  including  yachts  but  excluding  aircrafts 

and vessels, up to a period of one month. 

Explanation.––For the purposes of this sub-section, the expression,–– 

(a) “account” means an account bearing interest to the depositor, and includes a non-resident 

external account and a non-resident ordinary account; 

(b)  “banking  company”  shall  have  the  same  meaning  as  assigned  to  it  under  clause  (a)  of 

section 45A of the Reserve Bank of India Act, 1934 (2 of 1934); 

(c)  ‘‘financial  institution”  shall  have  the  same  meaning  as  assigned  to  it  in  clause  (c)  of 

section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934); 

(d) “non-banking financial company” means,–– 

(i) a financial institution which is a company; 

(ii) a non-banking institution which is a company and which has as its principal business 
the  receiving  of  deposits,  under  any  scheme  or  arrangement  or  in  any  other  manner,  or 
lending in any manner; or 

(iii) such other non-banking institution or class of such institutions, as the Reserve Bank 
of India may, with the previous approval of the Central Government and by notification in the 
Official Gazette, specify. 

(9) The place of supply of services of transportation of goods, other than by way of mail or courier, 

shall be the place of destination of such goods. 

12 

(10) The place of supply in respect of passenger transportation services shall be the place where the 

passenger embarks on the conveyance for a continuous journey. 

(11) The place of supply of services provided on board a conveyance during the course of a passenger 
transport operation, including services intended to be wholly or substantially consumed while on board, 
shall be the first scheduled point of departure of that conveyance for the journey. 

(12) The place of supply of online information and database access or retrieval services shall be the 

location of the recipient of services. 

Explanation.––For the purposes of this sub-section, person receiving such services shall be deemed to 
be located in the taxable territory, if any two of the following noncontradictory conditions are satisfied, 
namely:–– 

(a) the location of address presented by the recipient of services through internet is in the taxable 

territory; 

(b) the credit card or debit card or store value card or charge card or smart card or any other card 

by which the recipient of services settles payment has been issued in the taxable territory; 

(c) the billing address of the recipient of services is in the taxable territory; 

(d) the internet protocol address of the device used by the recipient of services is in the taxable 

territory; 

(e) the bank of the recipient of services in which the account used for payment is maintained is in 

the taxable territory; 

(f) the country code of the subscriber identity module card used by the recipient of services is of 

taxable territory; 

(g) the location of the fixed land line through which the service is received by the recipient is in 

the taxable territory. 

(13) In order to prevent double taxation or non-taxation of the supply of a service, or for the uniform 
application  of  rules,  the  Government  shall  have  the  power  to  notify  any  description  of  services  or 
circumstances in which the place of supply shall be the place of effective use and enjoyment of a service. 

14. Special provision for payment of tax by a supplier of online information and database access 
or retrieval services.––(1) On supply of online information and database access or retrieval services by 
any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier 
of services located in a non-taxable territory shall be the person liable for paying integrated  tax on such 
supply of services: 

Provided that in the case of supply of online information and database access or retrieval services by 
any  person  located  in  a  non-taxable  territory  and  received  by  a  nontaxable  online  recipient,  an 
intermediary located in the non-taxable territory, who arranges or facilitates the supply of such services, 
shall be deemed to be the recipient of such services from the supplier of services in non-taxable territory 
and supplying such services to the non-taxable online recipient except when such intermediary satisfies 
the following conditions, namely:–– 

(a) the invoice or customer’s bill or receipt issued or made available by such intermediary taking 

part in the supply clearly identifies the service in question and its supplier in non-taxable territory; 

(b) the intermediary involved in the supply does not authorise the charge to the customer or take 
part in its charge which is that the intermediary neither collects or processes payment in any manner 
nor is responsible for the payment between the non-taxable online recipient and the supplier of such 
services; 

(c) the intermediary involved in the supply does not authorise delivery; and 

(d) the general terms and conditions of the supply are not set by the intermediary involved in the 

supply but by the supplier of services. 

13 

(2)  The  supplier  of  online  information  and  database  access  or  retrieval  services  referred  to  in  
sub-section  (1)  shall,  for  payment  of  integrated  tax,  take  a  single  registration  under  the  Simplified 
Registration Scheme to be notified by the Government: 

Provided that any person located in the taxable territory representing such supplier for any purpose in 

the taxable territory shall get registered and pay integrated tax on behalf of the supplier: 

Provided  further  that  if  such  supplier  does  not  have  a  physical  presence  or  does  not  have  a 
representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for 
the purpose of paying integrated tax and such person shall be liable for payment of such tax.  

CHAPTER VI 

REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST 

15. Refund of integrated tax paid on supply of goods to tourist leaving India.––The integrated tax 
paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such 
manner and subject to such conditions and safeguards as may be prescribed. 

Explanation.––For  the  purposes  of  this  section,  the  term  “tourist”  means  a  person  not  normally 
resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant 
purposes.  

CHAPTER VII 

ZERO RATED SUPPLY 

16.  Zero  rated  supply.––(1)  “zero  rated  supply”  means  any  of  the  following  supplies  of  goods  or 

services or both, namely:–– 

(a) export of goods or services or both; or 

(b) supply of goods or services or both  1[for authorised operations] to a Special Economic Zone 

developer or a Special Economic Zone unit. 

(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax 
Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply 
may be an exempt supply. 

2[(3) A registered person making zero rated supply shall be eligible to claim refund of unutilized input 
tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter 
of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax 
Act  or  the  rules  made  thereunder,  subject  to  such  conditions,  safeguards  and  procedure  as  may  be 
prescribed: 

Provided that the registered person making zero rated supply of goods shall, in case of non-realisation 
of  sale  proceeds,  be  liable  to  deposit  the  refund  so  received  under  this  sub-section  along  with  the 
applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the 
expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 (42 of 1999) for 
receipt of foreign exchange remittances, in such manner as may be prescribed. 

(4)  The  Government  may,  on  the  recommendation  of  the  Council,  and  subject  to  such  conditions, 

safeguards and procedures, by notification, specify–– 

(i)  a  class  of  persons  who may  make  zero  rated  supply  on  payment  of integrated  tax and claim 

refund of the tax so paid; 

(ii)  a  class  of  goods  or  services  which  may  be  exported  on  payment  of  integrated  tax  and  the 

supplier of such goods or services may claim the refund of tax so paid.] 

1. Ins. by Act 13 of 2021, s. 123 (w.e.f. 28-3-2021). 
2. Subs. by s. 123, ibid., for sub-section (3) (w.e.f. 28-3-2021). 

14 

 
 
                                                      
CHAPTER VIII 

APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS 

17.  Apportionment  of  tax  and  settlement  of  funds.––(1)  Out  of  the  integrated  tax  paid  to  the 

Central Government,–– 

(a) in respect of inter-State supply of goods or services or both to an unregistered person or to a 

registered person paying tax under section 10 of the Central Goods and Services Tax Act; 

(b) in respect of inter-State supply of goods or services or both where the registered person is not 

eligible for input tax credit; 

(c)  in  respect  of  inter-State  supply  of  goods  or  services  or  both  made  in  a  financial  year  to  a 
registered person, where he does not avail of the input tax credit within the specified period and thus 
remains in the integrated tax account after expiry of the due date for furnishing of annual return for 
such year in which the supply was made; 

(d) in respect of import of goods or services or both by an unregistered person or by a registered 

person paying tax under section 10 of the Central Goods and Services Tax Act; 

(e) in respect of import of goods or services or both where the registered person is not eligible for 

input tax credit; 

(f)  in  respect  of  import  of  goods  or  services  or  both  made  in  a  financial  year  by  a  registered 
person, where he does not avail of the said credit within the specified period and thus remains in the 
integrated  tax  account  after  expiry  of  the  due  date  for  furnishing  of  annual  return  for  such  year  in 
which the supply was received,  

the amount of tax calculated at the rate equivalent to the central tax on similar intra-State supply shall be 
apportioned to the Central Government. 

(2)  The  balance  amount  of  integrated  tax  remaining  in  the  integrated  tax  account  in  respect  of  the 
supply for which an apportionment to the Central Government has been done under sub-section (1) shall 
be apportioned to the,–– 

(a) State where such supply takes place; and 

(b) Central Government where such supply takes place in a Union territory:  

Provided  that  where  the  place  of  such  supply  made  by  any  taxable  person  cannot  be  determined 

separately, the said balance amount shall be apportioned to,–– 

(a) each of the States; and 

(b) Central Government in relation to Union territories,  

in proportion to the total supplies made by such taxable person to each of such States or Union territories, 
as the case may be, in a financial year: 

Provided  further  that  where  the  taxable  person  making  such  supplies  is  not  identifiable,  the  said 
balance amount shall be apportioned to all States and the Central Government in proportion to the amount 
collected as State tax or, as the case may be, Union territory tax, by the respective State or, as the case 
may be, by the Central Government during the immediately preceding financial year. 

1[(2A) The amount not apportioned under sub-section (1) and sub-section (2) may, for the time being, 
on  the  recommendations  of  the  Council,  be  apportioned  at  the  rate  of  fifty  per  cent.  to  the  Central 
Government  and  fifty  per  cent.  to  the  State  Governments  or  the  Union  territories,  as  the  case  may  be, 
on ad hoc basis and shall be adjusted against the amount apportioned under the said sub-sections.] 

(3) The provisions of sub-sections (1) and (2) relating to apportionment of integrated tax shall, mutatis 
mutandis, apply to the apportionment of interest, penalty and compounding amount realised in connection 
with the tax so apportioned. 

1. Ins. by Act 32 of 2018, s. 7 (w.e.f. 1-2-2019). 

15 

                                                      
(4) Where an amount has been apportioned to the Central Government or a State Government under 
sub-section  (1)  or  sub-section  (2)  or  sub-section  (3),  the  amount  collected  as  integrated  tax  shall  stand 
reduced by an amount equal to the amount so apportioned and the Central Government shall transfer to 
the  central  tax  account  or  Union  territory  tax  account,  an  amount  equal  to  the  respective  amounts 
apportioned to the Central Government and shall transfer to the State tax account of the respective States 
an amount equal to the amount apportioned to that State, in such manner and within such time as may be 
prescribed. 

(5) Any integrated tax apportioned to a State or, as the case may be, to the Central Government on 
account of a Union territory, if subsequently found to be refundable to any person and refunded to such 
person, shall be reduced from the amount to be apportioned under this section, to such State, or Central 
Government  on  account  of  such  Union  territory,  in  such  manner  and  within  such  time  as  may  be 
prescribed. 

1[17A. Transfer of certain amounts.––Where any amount has been transferred from the electronic 
cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the 
Union Territory Goods and Services Tax Act, the Government shall transfer to the State tax account or the 
Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in 
such manner and within such time, as may be prescribed.] 

18. Transfer of input tax credit.––On utilisation of credit of integrated tax availed under this Act for 

payment of,–– 

(a) central tax in accordance with the provisions of sub-section (5) of section 49 of the Central 
Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount 
equal  to  the  credit  so  utilised  and  the  Central  Government  shall  transfer  an  amount  equal  to  the 
amount  so  reduced  from  the  integrated  tax  account  to  the  central  tax  account  in  such  manner  and 
within such time as may be prescribed; 

(b)  Union  territory  tax  in  accordance  with  the  provisions  of  section  9  of  the  Union  Territory 
Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount 
equal  to  the  credit  so  utilised  and  the  Central  Government  shall  transfer  an  amount  equal  to  the 
amount so reduced from the integrated tax account to the Union territory tax account in such manner 
and within such time as may be prescribed; 

(c)  State  tax  in  accordance  with  the  provisions  of  the  respective  State  Goods  and  Services  Tax 
Act, the  amount collected as integrated tax  shall  stand  reduced  by  an  amount  equal  to  the credit so 
utilised  and  shall  be  apportioned  to  the  appropriate  State  Government  and  the  Central  Government 
shall transfer the amount so apportioned to the account of the appropriate State Government in such 
manner and within such time as may be prescribed. 

Explanation.––For  the  purposes  of  this  Chapter,  “appropriate  State”  in  relation  to  a  taxable 
person, means the State or Union territory where he is registered or is liable to be registered under the 
provisions of the Central Goods and Services Tax Act.  

19.  Tax  wrongfully  collected  and  paid  to  Central  Government  or  State  Government.––(1)  A 
registered person who has paid integrated tax on a supply considered by him to be an inter-State supply, 
but  which  is  subsequently  held  to  be  an  intra-State  supply,  shall  be  granted  refund  of  the  amount  of 
integrated tax so paid in such manner and subject to such conditions as may be prescribed. 

(2) A registered person who has paid central tax and State tax or Union territory tax, as the case may 
be, on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an 
inter-State supply, shall not be required to pay any interest on the amount of integrated tax payable.  

CHAPTER IX 

MISCELLANEOUS 

20. Application of provisions of Central Goods and Services Tax Act.––Subject to the provisions 
of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating 
to,–– 

1. Ins. by Act 23 of 2019, s. 114 (w.e.f. 01-01-2020). 

16 

                                                      
(i) scope of supply; 

(ii) composite supply and mixed supply; 

(iii) time and value of supply; 

(iv) input tax credit; 

(v) registration; 

(vi) tax invoice, credit and debit notes; 

(vii) accounts and records; 

(viii) returns, other than late fee; 

(ix) payment of tax; 

(x) tax deduction at source; 

(xi) collection of tax at source; 

(xii) assessment; 

(xiii) refunds; 

(xiv) audit; 

(xv) inspection, search, seizure and arrest; 

(xvi) demands and recovery; 

(xvii) liability to pay in certain cases; 

(xviii) advance ruling; 

(xix) appeals and revision; 

(xx) presumption as to documents; 

(xxi) offences and penalties; 

(xxii) job work; 

(xxiii) electronic commerce; 

(xxiv) transitional provisions; and 

(xxv) miscellaneous provisions including the provisions relating to the imposition of interest and 

penalty,  

shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they apply in relation to 
central tax as if they are enacted under this Act: 

Provided that in the case of tax deducted at source, the deductor shall deduct tax at the rate of two per 

cent. from the payment made or credited to the supplier: 

Provided further that in the case of tax collected at source, the operator shall collect tax at such rate 
not exceeding two per cent, as may be notified on the recommendations of the Council, of the net value of 
taxable supplies: 

Provided also that for the purposes of this Act, the value of a supply shall include any taxes, duties, 
cesses,  fees  and  charges  levied  under  any  law  for  the  time  being  in  force  other  than  this  Act,  and  the 
Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier: 

Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax 
Act and the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the 
penalty leviable under this Act shall be the sum total of the said penalties.  

1[Provided  also  that  where the appeal  is to  be filed  before  the  Appellate  Authority  or the  Appellate 
Tribunal,  the  maximum  amount  payable  shall  be  fifty  crore  rupees  and  one  hundred  crore  rupees 
respectively.] 

1. The proviso ins. by Act 32 of 2018, s. 8 (w.e.f. 1-2-2019). 

17 

                                                      
21. Import of services made on or after the appointed day.––Import of services made on or after 
the  appointed  day  shall  be  liable  to  tax  under  the  provisions  of  this  Act  regardless  of  whether  the 
transactions for such import of services had been initiated before the appointed day: 

Provided that if the tax on such import of services had been paid in full under the existing law, no tax 

shall be payable on such import under this Act: 

Provided further that if the tax on such import of services had been paid in part under the existing law, 

the balance amount of tax shall be payable on such import under this Act. 

Explanation.––For the purposes of this section, a transaction shall be deemed to have been initiated 
before the appointed day if either the invoice relating to such supply or payment, either in full or in part, 
has been received or made before the appointed day. 

22.  Power  to  make  rules.––(1) The  Government  may,  on  the  recommendations  of  the  Council,  by 

notification, make rules for carrying out the provisions of this Act. 

(2)  Without  prejudice  to  the  generality  of  the  provisions  of  sub-section  (1),  the  Government  may 
make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in 
respect of which provisions are to be or may be made by rules. 

(3) The power to make rules conferred by this section shall include the power to give retrospective 
effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act 
come into force. 

(4) Any rules made under sub-section (1) may provide that a contravention thereof shall be liable to a 

penalty not exceeding ten thousand rupees.  

23. Power to make regulations.––The Board may, by notification, make regulations consistent with 

this Act and the rules made thereunder to carry out the provisions of this Act.  

24.  Laying  of  rules,  regulations  and  notifications.––Every  rule  made  by  the  Government,  every 
regulation made by the Board and every notification issued by the Government under this Act, shall be 
laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session, 
for  a  total  period  of  thirty  days  which  may  be  comprised  in  one  session  or  in  two  or  more  successive 
sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the  successive 
sessions  aforesaid,  both  Houses  agree  in  making  any  modification  in  the  rule  or  regulation  or  in  the 
notification, as the case may be, or both Houses agree that the rule or regulation or the notification should 
not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in 
such  modified  form  or  be  of  no  effect,  as the  case  may  be;  so,  however,  that  any  such  modification  or 
annulment  shall  be  without  prejudice  to  the  validity  of  anything  previously  done  under  that  rule  or 
regulation or notification, as the case may be. 

25. Removal of difficulties.––(1) If any difficulty arises in giving effect to any provision of this Act, 
the Government may, on the recommendations of the Council, by a general or a special order published in 
the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or 
regulations  made  thereunder,  as  may  be  necessary  or  expedient  for  the  purpose  of  removing  the  said 
difficulty: 

Provided that no such order shall be made after the expiry of a period of 1[five years] from the date of 

commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each 

House of Parliament.  

1. Subs. by Act 12 of 2020, s. 134, for “three years” (w.e.f. 30-6-2020). 

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