¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

1
RNI  No. MAHENG /2009/35528

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+ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö
MÉÖ¯û´ÉÉ®úúú, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

[{ÉÞ¹`ä 109,  ËEò¨ÉiÉ : ¯û{ÉªÉä  27.00

´É¹ÉÇ 3, +ÆEòú 46]

+ºÉÉvÉÉ®úhÉ  Gò¨ÉÉÆEòú  94
|ÉÉÊvÉEÞòiÉ  |ÉEòÉ¶ÉxÉ
¨É½þÉ®úÉ¹]Åõ Ê´ÉvÉÉxÉ¨ÉÆb÷³ýÉSÉä  +ÊvÉÊxÉªÉ¨É ´É ®úÉVªÉ{ÉÉ±ÉÉÆxÉÒ |ÉJªÉÉÊ{ÉiÉ  Eäò±Éä±Éä +vªÉÉnäù¶É ´É Eäò±Éä±Éä  Ê´ÉÊxÉªÉ¨É +ÉÊhÉ
Ê´ÉÊvÉ ´É xªÉÉªÉ Ê´É¦ÉÉMÉÉEòbÚ÷÷xÉ +É±Éä±ÉÒ Ê´ÉvÉäªÉEäò (<ÆOÉVÉÒ +xÉÖ´ÉÉnù).

In pursuance of clause (3) of article 348 of the Constitution of India, the following translation
in English of the Maharashtra Goods and Services Tax Act, 2017 (Mah. Act No. XLIII of 2017), is
hereby published under the authority of the Governor.

By order and in the name of the Governor of Maharashtra,

PRAKASH H. MALI,
Principal Secretary to Government,
Law and Judiciary Department.

MAHARASHTRA ACT No. XLIII OF 2017.

(First published, after having received the assent of the Governor in the
“Maharashtra Government Gazette”, on the 15th June 2017).

An Act to make provisions for levy and collection of tax on intra-State
supply of goods or, services or, both in the State of Maharashtra and the
matters  connected  therewith  or  incidental  thereto.

WHEREAS, it is expedient to make provisions for levy and collection of
tax  on  intra-State  supply  of  goods  or,  services  or,  both  in  the  State  of
Maharashtra  and  the  matters  connected  therewith  or  incidental  thereto ;  it
is  hereby  enacted  in  the  Sixty-eighth  Year  of  the  Republic  of  India  as
follows :—

CHAPTER  I

PRELIMINARY

1.
Act, 2017.

(1) This Act may be called the Maharashtra Goods and Services Tax

(2)  It  extends to the whole of the  State  of  Maharashtra.

Short  title,
extent  and
c o m m e n c e -
m en t .

¦ÉÉMÉ +É`ö--94-1

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(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 provision to the commencement of
this  Act  shall  be  construed  as  a  reference  to  the  coming  into  force  of  that
provision.

Definitions.

2.

In  this  Act,  unless  the  context  otherwise  requires,––
(1) “actionable  claim”  shall  have  the  same  meaning  as  assigned  to

it in section 3 of the Transfer of Property Act, 1882 ;

4  of
1882.

(2) “address of delivery” means the address of the recipient of goods
or  services  or  both  indicated  on  the  tax  invoice  issued  by  a  registered
person  for  delivery  of  such  goods  or  services  or  both ;

(3) “address  on  record”  means  the  address  of  the  recipient  as

available  in  the  records  of  the  supplier ;

(4) “adjudicating  authority”  means  any  authority,  appointed  or
authorised  to  pass  any  order  or  decision  under  this  Act,  but  does  not
include  the  Commissioner,  Revisional  Authority,  the  Authority  for
Advance  Ruling,  the  Appellate  Authority  for  Advance  Ruling,  the
Appellate  Authority  and  the  Appellate  Tribunal ;

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

(6) “aggregate  turnover”  means  the  aggregate  value  of  all  taxable
supplies (excluding the value of inward supplies on which tax is payable
by a person on reverse charge basis), exempt supplies, exports of goods
or services or both and inter-State supplies of persons having the same
Permanent  Account  Number,  to  be  computed  on  all  India  basis  but
excludes Central tax, State tax, Union territory tax, integrated tax and
cess ;

(7) “agriculturist” means an individual or a Hindu Undivided Family

who  undertakes  cultivation  of  land—

(a) by own  labour, or
(b) by the labour of family, or
(c) by  servants  on  wages  payable  in  cash  or  kind  or  by  hired
labour  under  personal  supervision  or  the  personal  supervision  of
any member of the family ;
(8) “Appellate  Authority”  means  an  authority  appointed  or

authorised  to hear  appeals as  referred to  in section  107 ;

(9) “Appellate  Tribunal”  means  the  Goods  and  Services  Tax

Appellate  Tribunal  referred  to  in  section109 ;

(10) “appointed day” means the date on which the provisions of this

Act  shall  come  into  force ;

(11) “assessment”  means  determination  of  tax  liability  under  this
Act and includes self-assessment, re-assessment, provisional assessment,
summary assessment and best judgement assessment ;

(12) “associated  enterprises”  shall  have  the  same  meaning  as

assigned to it in section 92A of the Income-tax Act, 1961 ;

43  of
1961.

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3

54  of
1963.

(13) “audit”  means  the  examination  of  records,  returns  and  other
documents maintained or furnished by the registered person under this
Act  or  the  rules  made  thereunder  or  under  any  other  law  for  the  time
being in force to verify the correctness of turnover declared, taxes paid,
refund claimed and input tax credit availed, and to assess his compliance
with  the  provisions  of  this  Act  or  the  rules  made  thereunder ;

(14) “authorised  bank”  shall  mean  a  bank  or  a  branch  of  a  bank
authorised  by  the  Central  Government  to  collect  the  tax  or  any  other
amount payable under this Act ;

(15) “authorised representative”  means  the  representative  as

referred  to  under  section  116 ;

(16) “Board”  means  the  Central  Board  of  Excise  and  Customs

constituted  under  the  Central  Boards  of  Revenue  Act,  1963 ;

(17) “business”  includes––

(a)  any  trade,  commerce,  manufacture,  profession,  vocation,
adventure, wager or any other similar activity, whether or not it is
for  a  pecuniary  benefit ;

(b) any activity or transaction in connection with or incidental

or ancillary  to sub-clause  (a) ;

(c)  any  activity  or  transaction  in  the  nature  of  sub-clause  (a),
whether or not there is volume, frequency, continuity or regularity
of  such  transaction ;

(d)  supply  or  acquisition  of  goods  including  capital  goods  and
services  in  connection  with  commencement  or  closure  of  business ;
(e)  provision  by  a  club,  association,  society,  or  any  such  body
(for  a  subscription  or  any  other  consideration)  of  the  facilities  or
benefits  to  its  members ;

(f) admission, for a  consideration, of persons to any  premises ;
(g) services supplied by a person as the holder of an office which
has been accepted by him in the course or furtherance of his trade,
profession  or  vocation ;

(h)  services  provided  by  a  race  club  by  way  of  totalisator  or  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 ;
(18) “business  vertical”  means  a  distinguishable  component  of  an
enterprise  that  is engaged  in  the  supply  of  individual goods  or  services
or  a  group  of  related  goods  or  services  which  is  subject  to  risks  and
returns  that  are  different  from  those  of  the  other  business  verticals.

Explanation.––For  the  purposes  of  this  clause,  factors  that  should
be  considered  in  determining  whether  goods  or  services  are  related
include––

(a) the  nature of  the goods  or services ;
(b)  the  nature  of  the  production  processes ;
(c) the  type or class  of customers  for the goods  or services ;
(d)  the  methods  used  to  distribute  the  goods  or  supply  of

services ;  and

(e) the nature of regulatory environment (wherever applicable),

including  banking,  insurance  or  public  utilities ;

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(19) “capital  goods”  means  goods,  the  value  of  which  is  capitalised
in  the  books  of  account  of  the  person  claiming  the  input  tax  credit  and
which  are  used  or  intended  to  be  used  in  the  course  or  furtherance  of
business ;

(20) “casual  taxable  person”  means  a  person  who  occasionally
undertakes transactions involving supply of goods or services or both in
the course or furtherance of business, whether as principal, agent or in
any other capacity, in the taxable territory where he has no fixed place
of  business ;

(21) “central  tax”  means  the  central  goods  and  services  tax  levied

under section 9 of the Central Goods and Services Tax Act ;

(22) “cess”  shall  have  the  same  meaning  as  assigned  to  it  in  the

Goods  and  Services  Tax  (Compensation  to  States)  Act ;

(23) “chartered  accountant”  means  a  chartered  accountant  as
defined  in  clause  (b)  of  sub-section  (1)  of  section  2  of  the  Chartered
Accountants Act,  1949 ;

(24) “Commissioner”  means  the  Commissioner  of  State  tax
appointed  under  section  3  and  includes  the  Principal  Commissioner  or
Chief  Commissioner  of  State  tax  appointed  under  section  3 ;

(25) “Commissioner in the Board” means the Commissioner referred

to in section 168 of the Central Goods and Services Tax Act ;

(26) “common  portal”  means  the  common  goods  and  services  tax

electronic  portal  referred  to  in  section  146 ;

(27) “common  working  days”  shall  mean  such  days  in  succession
which are not declared as gazetted holidays by the Central Government
or  the  Government  of  Maharashtra ;

38  of
1949.

(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 ; 

56  of
1980.

(29) “competent authority” means such authority as may be notified

by  the  Government ;

(30) “composite  supply”  means  a  supply  made  by  a  taxable  person
to  a  recipient  consisting  of  two  or  more  taxable  supplies  of  goods  or
services or both, or any combination thereof, which are naturally bundled
and  supplied  in  conjunction  with  each  other  in  the  ordinary  course  of
business, one of which is a principal supply.

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

(31) “consideration”  in  relation  to  the  supply  of  goods  or  services

or  both  includes––

(a)  any  payment  made  or  to  be  made,  whether  in  money  or
otherwise,  in  respect  of,  in  response  to,  or  for  the  inducement  of,
the supply of goods or services or both, whether by the recipient or
by any other person but shall not include any subsidy given by the
Central  Government  or  a  State  Government ;

(b) the monetary value of any act or forbearance, in respect of,
in  response  to,  or  for  the  inducement  of,  the  supply  of  goods  or

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5

services  or  both,  whether  by  the  recipient  or  by  any  other  person
but shall not include any subsidy given by the Central Government
or  a  State  Government :

Provided that a deposit given in respect of the supply of goods
or  services  or  both  shall  not  be  considered  as  payment  made  for
such  supply  unless  the  supplier  applies  such  deposit  as
consideration  for  the  said  supply ;
(32) “continuous supply of goods” means a supply of goods which is
provided,  or  agreed  to  be  provided,  continuously  or  on  recurrent  basis,
under  a  contract,  whether or  not  by  means  of  a wire,  cable,  pipeline  or
other  conduit,  and  for  which  the  supplier  invoices  the  recipient  on  a
regular  or  periodic  basis  and  includes  supply  of  such  goods  as  the
Government may,  subject to  such conditions, as  it may,  by notification,
specify ;

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

(34) “conveyance”  includes  a  vessel,  an  aircraft  and  a  vehicle ;
(35) “cost  accountant”  means  a  cost  accountant  as  defined  in
clause (c) of sub-section (1) of section 2 of the Cost and Works Accountants
Act, 1959 ;

(36) “Council”  means  the  Goods  and  Services  Tax  Council

established  under  article  279A  of  the  Constitution ;

(37) “credit note” means a document  issued by a registered person

under sub-section (1) of section 34 ;

(38) “debit  note”  means  a  document  issued  by  a  registered  person

under sub-section (3) of section 34 ;

(39) “deemed  exports”  means  such  supplies  of  goods  as  may  be

notified  under  section  147 ;

(40) “designated authority” means such authority as may be notified

by  the  Commissioner ;

(41) “document” includes written or printed record of any sort and
electronic  record as  defined  in clause  (t)  of  section 2  of  the  Information
Technology  Act,  2000 ;

(42) “drawback” in relation to any goods manufactured in India and
exported,  means  the  rebate  of  duty,  tax  or  cess  chargeable  on  any
imported inputs or on any domestic inputs or input services used in the
manufacture  of  such  goods ;

(43) “electronic  cash  ledger”  means  the  electronic  cash  ledger

referred to in  sub-section (1)  of section  49 ;

(44) “electronic  commerce”  means  the  supply  of  goods  or  services
or  both,  including  digital  products  over  digital  or  electronic  network ;
(45) “electronic  commerce  operator”  means  any  person  who  owns,
operates  or  manages  digital  or  electronic  facility  or  platform  for
electronic  commerce ;

(46) “electronic  credit  ledger”  means  the  electronic  credit  ledger

referred to in  sub-section (2)  of section  49 ;

23  of
1959.

21  of
2000.

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(47) “exempt supply” means supply of any goods or services or both
which  attracts  nil  rate  of  tax  or  which  may  be  wholly  exempt  from  tax
under section 11, or under section 6 of the Integrated Goods and Services
Tax  Act, and  includes non-taxable  supply ;

(48) “existing  law”  means  any  law,  notification,  order,  rule  or
regulation  relating  to  levy  and  collection  of  duty  or  tax  on  goods  or
services or both passed or made before the commencement of this Act by
the  Legislature  or  any  Authority  or  person  having  the  power  to  make
such  law,  notification,  order,  rule  or  regulation ;

(49) “family”  means,—

(i) the  spouse  and  children  of  the  person,  and
(ii) the  parents,  grand-parents,  brothers  and  sisters  of  the
person if they are wholly or mainly dependent on the said person ;
(50) “fixed establishment” means a place (other than the registered
place  of  business)  which  is  characterised  by  a  sufficient  degree  of
permanence  and  suitable  structure  in  terms  of  human  and  technical
resources  to  supply  services,  or  to  receive  and  use  services  for  its  own
needs ;

(51) “Fund”  means  the  Consumer  Welfare  Fund  established  under

section  57 ;

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

(53) “Government”  means  the  Government  of  Maharashtra ;
(54) “Goods and Services Tax (Compensation to States) Act” means

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

(55) “goods  and  services  tax  practitioner”  means  any  person  who

has been approved  under section 48 to act  as such practitioner ;

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

(57) “Integrated Goods and Services Tax Act” means the Integrated

Goods and Services Tax Act, 2017 ;

(58) “integrated  tax”  means  the  integrated  goods  and  services  tax

levied  under  the  Integrated  Goods  and  Services  Tax  Act ;

(59) “input”  means  any  goods  other  than  capital  goods  used  or
intended to be used by a supplier in the course or furtherance of business ;
(60) “input service” means any service used or intended to be used

by a supplier in the course or furtherance of business ;

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

15  of
2017.

80  of
1976.

13  of
2017.

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7

(62) “input tax” in relation to a registered person, means the central
tax, State tax, integrated tax or Union territory tax charged on any supply
of goods or services or both made to him and includes—

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

goods ;

(b) the tax payable under the provisions of sub-sections (3) and

(4) of section 9 ;

(c) the tax payable under the provisions of sub-sections (3) and

(4) of section 5 of the Integrated Goods and Services Tax Act ; or

(d) the tax payable under the provisions 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 ;
(63) “input tax credit” means the credit of input tax ;
(64) “intra-State  supply  of  goods”  shall  have  the  same  meaning  as
assigned to it in section 8 of the Integrated Goods and Services Tax Act ;
(65) “intra-State  supply  of  services”  shall  have  the  same  meaning
as  assigned  to  it  in  section  8  of  the  Integrated  Goods  and  Services  Tax
Act ;

(66) “invoice”  or  “tax  invoice”  means  the  tax  invoice  referred  to  in

section  31 ;

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

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

(69) “local  authority”  means––

(a)  a “Panchayat”  as defined  in clause  (d)  of article  243 of  the

Constitution ;

(b)  a  “Municipality”  as  defined  in  clause  (e)  of  article  243P  of

the Constitution ;

(c) a Municipal Committee, a Zilla Parishad, a District Board,
and  any  other  authority  legally  entitled  to,  or  entrusted  by  the
Central  Government  or  any  State  Government  with  the  control  or
management of a municipal or local fund ;

(d)  a  Cantonment  Board  as  defined  in  section  3  of  the

Cantonments Act, 2006 ;

(e)  a  Regional  Council  or  a  District  Council  constituted  under

the  Sixth  Schedule  to  the  Constitution ;

(f)  a  Development  Board  constituted  under  article  371  of  the

Constitution ;  or

(g)  a  Regional  Council  constituted  under  article  371A  of  the

Constitution ;
(70) “location  of  the  recipient  of  services”  means,-

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

41  of
2006.

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(b) where a supply is received at a place other than the place of
business  for  which  registration  has  been  obtained  (a  fixed
establishment elsewhere), the location of such fixed establishment ;
(c) where a supply is received at more than one establishment,
whether  the  place  of  business  or  fixed  establishment,  the  location
of  the  establishment  most  directly  concerned  with  the  receipt  of
the  supply ;  and

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

residence  of  the  recipient ;
(71) “location  of  the  supplier  of  services”  means,-

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

(b) where a supply is made from a place other than the place of
business  for  which  registration  has  been  obtained  (a  fixed
establishment elsewhere), the location of such fixed establishment ;
(c) where a supply is made from more than one establishment,
whether  the  place  of  business  or  fixed  establishment,  the  location
of the establishment most directly concerned with the provisions of
the  supply ;  and

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

residence  of  the  supplier ;
(72) “manufacture”  means  processing  of  raw  material  or  inputs  in
any manner that results in emergence of a new product having a distinct
name, character and use and the term “manufacturer” shall be construed
accordingly ;

(73) “market value” shall mean the full amount which a recipient of
a  supply  is  required  to  pay  in  order  to  obtain  the  goods  or  services  or
both of like kind and quality at or about the same time and at the same
commercial  level  where  the  recipient  and  the  supplier  are  not  related ;
(74) “mixed supply” means two or more individual supplies of goods
or  services,  or  any  combination  thereof,  made  in  conjunction  with  each
other by a taxable person for a single price where such supply does not
constitute  a  composite  supply.

Illustration :  A  supply  of  a  package  consisting  of  canned  foods,
sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when
supplied for a single price is a mixed supply. Each of these items can be
supplied separately and is not dependent on any other. It shall not be a
mixed  supply  if  these  items  are  supplied  separately ;

(75) “money” means the Indian legal tender or any foreign currency,
cheque,  promissory  note,  bill  of  exchange,  letter  of  credit,  draft,  pay
order,  traveller  cheque,  money  order,  postal  or  electronic  remittance  or
any  other  instrument  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 ;

(76) “motor vehicle” shall have the same meaning as assigned to it

in clause (28) of section 2 of the Motor Vehicles Act, 1988 ;

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

59  of
1988.

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9

(78) “non-taxable  supply’’  means  a  supply  of  goods  or  services  or
both which is not leviable to tax under this Act or under the Integrated
Goods  and  Services  Tax  Act ;

(79) “non-taxable  territory”  means  the  territory  which  is  outside

the  taxable  territory ;

(80) “notification”  means  a  notification  published  in  the Official
Gazette  and  the  expressions  ‘notify’  and  ‘notified’  shall  be  construed
accordingly ;

(81) “other  territory”  includes  territories  other  than  those
comprising  in  a  State  and  those  referred  to  in  sub-clauses  (a)  to  (e)  of
clause (114) ;

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

(83) “outward supply” in relation to a taxable person, means supply
of goods or services or both, whether by sale, transfer, barter, exchange,
licence,  rental,  lease  or  disposal  or  any  other  mode,  made  or  agreed  to
be made by such person in the course or furtherance of business ;

(84) “person”  includes—

(a)  an  individual ;
(b) a Hindu Undivided Family ;
(c) a company ;
(d) a firm ;
(e)  a  Limited  Liability  Partnership ;
(f)  an  association  of  persons  or  a  body  of  individuals,  whether

incorporated  or  not,  in  India  or  outside  India ;

(g)  any  corporation  established  by  or  under  any  Central  Act,
State Act or Provincial Act or a Government company as defined in
clause (45) of section 2 of the Companies Act, 2013 ;

(h)  any  body  corporate  incorporated  by  or  under  the  laws  of  a

country  outside  India ;

(i)  a  co-operative  society  registered  under  any  law  relating  to

co-operative  societies ;

(j) a local authority ;
(k)  Central  Government  or  a  State  Government ;
(l) society as defined under the Societies Registration Act, 1860 ;

(m) trust ; and
(n)  every  artificial  juridical  person,  not  falling  within  any  of

the  above ;
(85) “place  of  business”  includes––

(a)  a  place  from  where  the  business  is  ordinarily  carried  on,
and  includes  a  warehouse,  a  godown  or  any  other  place  where  a
taxable  person  stores  his  goods,  supplies  or  receives  goods  or
services  or  both ;  or

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

account ;  or

¦ÉÉMÉ +É`ö--94-2

30

18  of
2013.

21  of
1860.

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(c)  a  place  where  a  taxable  person  is  engaged  in  business

through an agent, by whatever name called ;
(86) “place  of  supply”  means  the  place  of  supply  as  referred  to  in

Chapter  V of  the  Integrated Goods  and  Services Tax  Act ;

(87) “prescribed’’  means  prescribed  by  rules  made  under  this  Act

on  the  recommendations  of  the  Council ;

(88) “principal”  means  a  person  on  whose  behalf  an  agent  carries

on  the business  of supply  or receipt  of  goods or  services or  both ;

(89) “principal  place  of  business”  means  the  place  of  business
specified  as  the  principal  place  of  business  in  the  certificate  of
registration ;

(90) “principal supply” means the supply of goods or services which
constitutes the predominant element of a composite supply and to which
any other  supply forming  part of that  composite supply  is ancillary ;

(91) “proper  officer”  in  relation  to  any  function  to  be  performed
under  this  Act,  means  the  Commissioner  or  the  officer  of  the  State  tax
who is assigned that  function by the Commissioner ;

(92) “quarter”  shall  mean  a  period  comprising  three  consecutive
calendar months, ending on the last day of March, June, September and
December  of  a  calendar  year ;

(93) “recipient”  of  supply  of  goods  or  services  or  both,  means—
(a)  where  a  consideration  is  payable  for  the  supply  of  goods  or

services  or  both, the  person  who  is  liable  to pay  that  consideration ;

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

(c) where no consideration is payable for the supply of a service, the

person  to  whom  the  service  is  rendered,

and  any  reference  to  a  person  to  whom  a  supply  is  made  shall  be
construed as a reference to the recipient of the supply and shall include
an agent acting as such on behalf of the recipient in relation to the goods
or  services  or  both  supplied ;

(94) “registered  person”  means  a  person  who  is  registered  under
section  25  but  does  not  include  a  person  having  a  Unique  Identity
Number ;

(95) “regulations” means the regulations made by the Government

under  this  Act  on  the  recommendations  of  the  Council ;

(96) “removal’’  in  relation  to  goods,  means-
(a)  despatch of  the  goods  for delivery  by  the  supplier thereof  or  by

any other person acting on behalf of such supplier ; or

(b)  collection  of  the  goods  by  the  recipient  thereof  or  by  any  other

person  acting  on  behalf  of  such  recipient ;

(97) “return”  means  any  return  prescribed  or  otherwise  required

to be furnished by or under this Act or the rules made thereunder ;

(98) “reverse charge’’ means the liability to pay tax by the recipient
of  supply  of  goods  or  services  or  both  instead  of  the  supplier  of  such
goods  or  services  or  both  under  sub-section  (3)  or  sub-section  (4)  of
section  9,  or  under  sub-section  (3)  or  sub-section  (4)  of  section  5  of  the
Integrated  Goods  and  Services  Tax  Act ;

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11

42  of
1956.

12  of
2017.

(99) “Revisional  Authority”  means  an  authority  appointed  or
authorised  for  revision  of  decision  or  orders  as  referred  to  in
section  108 ;

(100) “Schedule”  means  a  Schedule  appended  to  this  Act ;
(101) “securities” shall have the same meaning as assigned to it in
clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 ;

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

(103) “State” means the State of Maharashtra ;
(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 ;

(106) “tax period’’ means the period for which the return is required

to  be  furnished ;

(107) “taxable  person”  means  a  person  who  is  registered  or  liable

to  be  registered  under  section  22  or  section  24 ;

(108) “taxable supply’’ means  a supply of goods or  services or both

which is leviable to tax under this Act ;

(109) “taxable territory’’ means the territory to which the provisions

of this Act apply ;

(110) “telecommunication service” means service of any description
(including electronic mail, voice mail, data services, audio text services,
video text services, radio paging and cellular mobile telephone services)
which  is  made  available  to  users  by  means  of  any  transmission  or
reception of signs, signals, writing, images and sounds or intelligence of
any  nature,  by  wire,  radio, visual  or  other  electromagnetic  means ;

(111) “the Central Goods and Services Tax Act” means the Central

Goods and Services Tax Act, 2017 ;

(112) “turnover  in  State”  or  “turnover  in  Union  territory”  means
the aggregate value of all taxable supplies (excluding the value of inward
supplies  on  which  tax  is  payable  by  a  person  on  reverse  charge  basis)
and exempt supplies made within a State or Union territory by a taxable
person,  exports  of  goods  or  services  or  both  and  inter-State  supplies  of
goods or services or both made from the State or Union territory by the
said taxable person  but excludes central tax, State  tax, Union territory
tax, integrated tax and cess ;

(113) “usual  place  of  residence”  means––
(a)  in case  of an  individual, the  place where  he ordinarily  resides ;
(b)  in  other  cases,  the  place  where  the  person  is  incorporated  or

otherwise  legally  constituted ;

(114) “Union  territory”  means  the  territory  of,—
(a) the Andaman and  Nicobar Islands ;
(b) Lakshadweep ;
(c) Dadra and Nagar Haveli ;

¦ÉÉMÉ +É`ö--94-2+

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(d) Daman and Diu ;
(e) Chandigarh ;  and
(f) other  territory.
Explanation.—For  the  purposes  of  this  Act,  each  of  the
territories  specified  in  sub-clauses  (a)  to  (f)  shall  be  considered  to
be  a  separate  Union  territory ;
(115) “Union  territory  tax”  means  the  Union  territory  goods  and
services  tax  levied  under  the  Union  Territory  Goods  and  Services  Tax
Act ;

(116) “Union  Territory  Goods  and  Services  Tax  Act”  means  the

10

Union  Territory Goods  and Services  Tax Act,  2017 ;

14  of
2017.

(117) “valid  return”  means  a  return  furnished  under  sub-section

(1) of section 39 on which self-assessed tax has been paid in full ;

(118) “voucher”  means  an  instrument where  there  is  an  obligation
to accept it  as consideration or part  consideration for a supply  of goods
or services or both and where the goods or services or both to be supplied
or  the  identities  of  their  potential  suppliers  are  either  indicated  on  the
instrument  itself  or  in  related  documentation,  including  the  terms  and
conditions  of  use  of  such  instrument ;

(119) “works contract” means a contract for building, construction,
fabrication,  completion,  erection,  installation,  fitting  out,  improvement,
modification, repair, maintenance, renovation, alteration or commissioning
of  any  immovable  property  wherein  transfer  of  property  in  goods
(whether as goods or in some other form) is involved in the execution of
such  contract ;

(120) words  and  expressions  used  and  not  defined  in  this  Act  but
defined in the Integrated Goods and Services Tax Act, the 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 meanings as assigned to them in those Acts.

CHAPTER  II
ADMINISTRATION

O f f ic e r s
under  this
A c t .

3. The Government shall, by notification, appoint the following classes

of officers for the purposes  of this Act, namely :––
(a) Commissioner  of  State  tax,
(b) Special  Commissioners  of  State  tax,
(c) Additional  Commissioners  of  State  tax,
(d) Joint  Commissioners  of  State  tax,
(e) Deputy  Commissioners  of  State  tax,
(f) Assistant  Commissioners  of State  tax,  and
(g) any other class of officers as it may deem fit :
Provided that, the officers appointed under the Maharashtra Value
Added Tax Act, 2002, shall be deemed to be the officers appointed under
the  provisions  of  this  Act.

M a h .
IX  of
2005.

A p p o i n t -
ment  of
officers.

4.

(1) The Government may, in addition to the officers as may be notified
under  section  3,  appoint  such  persons  as  it  may  think  fit  to  be  the  officers
under  this  Act.

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13

(2) The Commissioner shall have jurisdiction over the whole of the State,
the Special  Commissioner and  an Additional  Commissioner in  respect of  all
or  any  of  the  functions  assigned  to  them,  shall  have  jurisdiction  over  the
whole of the State or where the State Government so directs, over any local
area thereof, and all other officers shall, subject to such conditions as may be
specified,  have  jurisdiction  over  the  whole  of  the  State  or  over  such  local
areas as the Commissioner may, by order, specify.

5.

(1)  Subject  to  such  conditions  and  limitations  as  the  Commissioner
may  impose,  an  officer  of  State  tax  may  exercise  the  powers  and  discharge
the  duties  conferred  or  imposed  on  him  under  this  Act.

Powers  of
officers.

(2) An  officer  of  State  tax  may  exercise  the  powers  and  discharge  the
duties  conferred or  imposed under  this  Act on  any  other officer  of State  tax
who is subordinate to him.

(3) The  Commissioner  may,  subject  to  such  conditions  and  limitations
as  may  be  specified  in  this  behalf  by  him,  delegate  his  powers  to  any  other
officer  who  is  subordinate  to  him.

(4) Notwithstanding anything  contained  in  this  section,  an  Appellate
Authority  shall  not  exercise  the  powers  and  discharge  the  duties  conferred
or imposed on any other officer of State tax.

6.

(1)  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 officers for the purposes of this Act, subject to such conditions
as  the  Government  shall,  on  the  recommendations  of  the  Council,  by
notification,  specify.

(2) Subject  to  the  conditions  specified  in  the  notification  issued  under

sub-section  (1),—

(a) where any proper officer issues an order under this Act, he shall
also  issue  an  order  under  the  Central  Goods  and  Services  Tax  Act,  as
authorised by the said Act under intimation to the jurisdictional officer
of central  tax ;

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

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

Autho risa -
tion  of
officers  of
central  tax
as  proper
officer  in
c er t a i n
c i rc u m -
sta nces.

CHAPTER  III
LEVY AND COLLECTION OF TAX

7.

(1) For the purposes of this Act, the expression “supply” includes––
(a) all  forms  of  supply  of  goods  or  services  or  both  such  as  sale,
transfer,  barter,  exchange,  license,  rental,  lease  or  disposal  made  or
agreed  to  be  made  for  a  consideration  by  a  person  in  the  course  or
furtherance  of  business ;

(b) import  of  services  for  a  consideration  whether  or  not  in  the

course  or  furtherance  of  business ;

(c) the activities specified in Schedule I, made or agreed to be made

without  a  consideration ;  and

Scope  of
su ppl y.

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T a x
liability  on
c o m p o s i t e
and  mixed
sup plie s.

Levy  and
col lecti on.

(d) the activities to be treated as supply of goods or supply of services

as referred  to in  Schedule II.

(2) Notwithstanding  anything  contained  in  sub-section  (1),––

(a)  activities  or  transactions  specified  in  Schedule  III ;  or

(b)  such  activities  or  transactions  undertaken  by  the  Central
Government,  a  State  Government  or  any  local  authority  in  which  they
are engaged as public authorities, as may be notified by the Government
on  the  recommendations  of  the  Council,

shall be treated neither as a supply of goods nor a supply of services.

(3) Subject to the provisions of sub-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 of goods and not as a supply of services ; or

(b) a supply of services and not as a supply of goods.

8. The  tax  liability  on  a  composite  or  a  mixed  supply  shall  be

determined  in  the  following  manner,  namely :  —

(a) a composite supply comprising two or more supplies, one of which
is a principal supply, shall be treated as a supply of such principal supply ;
and

(b) a mixed supply comprising two or more supplies shall be treated
as a  supply of that  particular supply which  attracts the highest  rate of
tax.

9.

(1) Subject to the provisions of sub-section (2), there shall be levied a
tax called the Maharashtra goods and services tax on all intra-State supplies
of goods or services or both, except on the supply of alcoholic liquor for human
consumption,  on  the  value  determined  under  section  15  and  at  such  rates,
not exceeding twenty per cent., as may be notified by the Government on the
recommendations  of  the  Council  and  collected  in  such  manner  as  may  be
prescribed and shall be paid by the taxable person.

(2) The  State  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.

(4) The State tax in respect of the supply of taxable goods or services or
both by a supplier, who is not registered, to a registered person shall be paid
by such person on reverse charge basis as the recipient and all the provisions
of this Act shall apply to such recipient as if he is the person liable for paying
the tax in relation to the supply of such goods or services or both.

(5) The  Government  may,  on  the  recommendations  of  the  Council,  by
notification,  specify  categories  of  services  the  tax  on  intra-State  supplies  of
which shall be paid by the electronic commerce operator if such services are
supplied  through  it,  and  all  the  provisions  of  this  Act  shall  apply  to  such

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15

electronic commerce operator as if he is the supplier liable for paying the tax
in  relation to  the  supply  of such  services :

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

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

10.

(1) Notwithstanding anything to the contrary contained in this Act
but subject to the provisions of sub-sections (3) and (4) of section 9, a registered
person,  whose  aggregate  turnover  in  the  preceding  financial  year  did  not
exceed fifty lakh rupees may opt to pay, in lieu of the tax payable by him, an
amount calculated at such rate as may be prescribed, but not exceeding,—

Composition
levy.

(a) one per cent. of the turnover in State in case of a manufacturer,
(b) two and a half per cent. of the turnover in State in case of persons
engaged  in  making  supplies  referred  to  in  clause  (b)  of  paragraph  6  of
Schedule II, and

(c) half per cent. of the turnover in State in case of other suppliers,

subject  to  such  conditions  and  restrictions  as  may  be  prescribed :

Provided  that  the  Government  may,  by  notification,  increase  the  said
limit  of  fifty  lakh  rupees  to  such  higher  amount,  not  exceeding  one  crore
rupees, as may be recommended by the Council.

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

if—

(a)  he  is  not  engaged  in  the  supply  of  services  other  than  supplies

referred to in clause (b) of paragraph 6 of Schedule II ;

(b) he is not engaged in making any supply of goods which are not

leviable to tax under this Act ;

(c) he is not engaged in making any inter-State outward supplies of

goods ;

(d)  he  is  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

(e) he is not a manufacturer of such goods as may be notified by the

Government  on  the  recommendations  of  the  Council :

Provided  that  where  more  than  one  registered  person  are  having
the  same  Permanent  Account  Number  (issued  under  the  Income-tax
Act 1961), the registered person shall not be eligible to opt for the scheme
under  sub-section  (1)  unless  all  such  registered  persons  opt  to  pay  tax
under  that  sub-section.
(3) The  option  availed  of  by  a  registered  person  under  sub-section  (1)
shall lapse with effect from the day on which his aggregate turnover during
a  financial  year  exceeds  the  limit  specified  under  sub-section  (1).

(4) A  taxable  person  to  whom  the  provisions  of  sub-section  (1)  apply
shall not collect any tax from the recipient on supplies made by him nor shall
he be entitled to any credit of input tax.

43  of
1961.

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Power  to
gr a n t
e x e m p t i o n
from  tax.

(5) If the proper officer has reasons to believe that a taxable person has
paid  tax  under  sub-section  (1)  despite  not  being  eligible,  such  person  shall,
in addition to any tax that may be payable by him under any other provisions
of this Act, be liable to a penalty and the provisions of section 73 or section 74
shall, mutatis mutandis, apply for determination of tax and penalty.

11.

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

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

(3) The Government may, if it considers necessary or expedient so to do
for  the  purpose  of  clarifying  the  scope  or  applicability  of  any  notification
issued under sub-section (1) or order issued  under sub-section (2), insert  an
explanation in such notification or order, as the case may be, by notification
at any time within one year of 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.

(4) Any  notification  issued  by  the  Central  Government,  on  the
recommendations of the Council, under sub-section (1) of section 11 or order
issued  under  sub-section  (2)  of  the  said  section  of  the  Central  Goods  and
Services Tax Act shall be deemed to be a notification or, as the case may be,
an  order  issued under  this  Act.

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

CHAPTER  IV
TIME AND VALUE OF SUPPLY

Time  of
supply  of
g o o d s .

12.

(1) The liability to pay tax on goods shall arise at the time of supply,

as  determined  in  accordance  with  the  provisions  of  this  section.

(2) The time of supply of goods shall be the earlier of the following dates,

namely :—

(a)  the  date  of  issue  of  invoice  by  the  supplier  or  the  last  date  on
which  he  is  required,  under  sub-section  (1)  of  section  31,  to  issue  the
invoice  with  respect  to  the  supply ;  or

(b) the date on which the supplier receives the payment with respect

to  the  supply :

Provided that where the supplier of taxable goods receives an amount
up to one thousand rupees in excess of the amount indicated in the tax
invoice, the time of supply to the extent of such excess amount shall, at
the option of the said supplier, be the date of issue of invoice in respect
of such excess amount.

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Explanation  1.––For  the  purposes  of  clauses  (a)  and  (b),  “supply”
shall  be  deemed  to  have  been  made  to  the  extent  it  is  covered  by  the
invoice or, as the case may be, the payment.

Explanation 2.––For the purposes of clause (b), “the date on which
the  supplier  receives  the  payment”  shall  be  the  date  on  which  the
payment  is  entered  in  his  books  of  account  or  the  date  on  which  the
payment  is  credited  to  his  bank  account,  whichever  is  earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid
on reverse charge basis, the time of supply shall be the earliest of the following
dates,  namely :—

(a) the date of the  receipt of goods ; or
(b)  the  date  of  payment  as  entered  in  the  books  of  account  of  the
recipient or the date on which the payment is debited in his bank account,
whichever  is  earlier ;  or

(c) the date immediately following thirty days from the date of issue
of invoice or any other document, by whatever name called, in lieu thereof
by  the  supplier :

Provided that where it is not possible to determine the time of supply
under clause (a) or clause (b) or clause (c), the time of supply shall be the
date of entry in the books of account of the recipient of supply.
(4) In case of supply of vouchers by a supplier, the time of supply shall

be—

(a) the date of issue of voucher, if the supply is identifiable at that

point ;  or

(b) the date of redemption of voucher, in all other cases.

(5) Where  it  is  not  possible  to  determine  the  time  of  supply  under  the
provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of
supply  shall––

(a) in a case where a periodical return has to be filed, be the date on

which such return is to be filed ; or

(b) in any other case, be the date on which the tax is paid.

(6) The time of supply to the extent it relates to an addition in the value
of  supply  by  way  of  interest,  late fee  or  penalty  for  delayed  payment  of  any
consideration shall be the date on which the supplier receives such addition
in value.

13.

(1)  The  liability  to  pay  tax  on  services  shall  arise  at  the  time  of

supply,  as  determined  in  accordance  with  the  provisions  of  this  section.

(2) The  time  of  supply  of  services  shall  be  the  earliest  of  the  following

Time  of
supply  of
ser vice s.

dates,  namely :—

(a) the date of issue of invoice by the supplier, if the invoice is issued
within  the  period  prescribed  under  sub-section  (2)  of  section  31  or  the
date  of  receipt  of  payment,  whichever  is  earlier ;  or

(b) the date of provision of service, if the invoice is not issued within
the  period  prescribed  under  sub-section  (2)  of  section  31  or  the  date  of
receipt  of  payment,  whichever  is  earlier ;  or

(c) the date on which the recipient shows the receipt of services in
his books of account, in a case where the provisions of clause (a) or clause
(b) do not apply :

Provided  that  where  the  supplier  of  taxable  service  receives  an
amount upto  one thousand rupees  in excess  of the amount  indicated in

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the  tax  invoice,  the  time  of  supply  to  the  extent  of  such  excess  amount
shall,  at  the  option  of  the  said  supplier,  be  the  date  of  issue  of  invoice
relating  to such  excess  amount.

Explanation.––For  the  purposes  of  clauses  (a)  and  (b)—

(i)  the supply shall be deemed to have been made to the extent

it is covered by the invoice or, as the case may be, the payment ;

(ii) “the date of receipt of payment” shall be the date on which
the  payment  is  entered  in  the  books  of  account  of  the  supplier  or
the  date  on  which  the  payment  is  credited  to  his  bank  account,
whichever  is  earlier.

(3) In case of supplies in respect of which tax is paid or liable to be paid
on reverse charge basis, the time of supply shall be the earlier of the following
dates,  namely :––

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

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

Provided that where it is not possible to determine the time of supply
under  clause  (a)  or  clause  (b),  the  time  of  supply  shall  be  the  date  of
entry in the books of account  of the recipient of supply :

Provided  further  that  in  case  of  supply  by  associated  enterprises,
where the supplier of service is located outside India, the time of supply
shall  be  the  date  of  entry  in  the  books  of  account  of  the  recipient  of
supply  or  the  date  of  payment,  whichever  is  earlier.
(4) In case of supply of vouchers by a supplier, the time of supply shall

be––

(a) the date of issue of voucher, if the supply is identifiable at that

point ;  or

(b) the date of redemption of voucher, in all other cases.

(5) Where  it  is  not  possible  to  determine  the  time  of  supply  under  the
provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of
supply  shall––

(a) in a case where a periodical return has to be filed, be the date on

which such return is to be filed ; or

(b) in any other case, be the date on which the tax is paid.

(6) The time of supply to the extent it relates to an addition in the value
of  supply  by  way  of  interest,  late fee  or  penalty  for  delayed  payment  of  any
consideration shall be the date on which the supplier receives such addition
in value.

Change  in
rate  of  tax
in  respect
of  supply
of  goods  or
ser vice s.

14. Notwithstanding  anything  contained  in  section  12  or  section  13,
the  time  of  supply,  where  there  is  a  change  in  the  rate  of  tax  in  respect  of
goods  or  services  or  both,  shall  be  determined  in  the  following  manner,
namely :––

(a)  in  case  the  goods  or services  or  both  have  been  supplied  before

the change in rate of tax,––

(i)  where  the  invoice  for  the  same  has  been  issued  and  the
payment is also received after the change in rate of tax, the time of

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supply shall be the date of receipt of payment or the date of issue of
invoice,  whichever  is  earlier ;  or

(ii)  where  the  invoice  has  been  issued  prior  to  the  change  in
rate of tax but payment is received after the change in rate of tax,
the time of supply shall be the date of issue of invoice ; or

(iii) where the payment has been received before the change in
rate of tax, but the invoice for the same is issued after the change in
rate of tax, the time of supply shall be the date of receipt of payment ;
(b)  in  case  the  goods  or  services  or  both  have  been  supplied  after

the change in rate of tax,––

(i)  where  the  payment  is  received  after  the  change  in  rate  of
tax  but  the  invoice  has  been  issued  prior  to  the  change  in  rate  of
tax, the time of supply shall be the date of receipt of payment ; or
(ii) where the invoice has been issued and payment is received
before the change in rate of tax, the time of supply shall be the date
of receipt of payment or date of issue of invoice, whichever is earlier ;
or

(iii) where the invoice has been issued after the change in rate
of tax but the payment is received before the change in rate of tax,
the time of supply shall be the date of issue of invoice :

Provided that the date of receipt of payment shall be the date
of  credit  in  the  bank  account  if  such  credit  in  the  bank  account  is
after four working days from the date of change in the rate of tax.
Explanation.––For  the  purposes  of  this  section,  “the  date  of
receipt  of  payment”  shall  be  the  date  on  which  the  payment  is
entered in the books of account of the supplier or the date on which
the  payment  is credited  to  his  bank  account, whichever  is  earlier.

15.

(1)  The  value  of  a  supply  of  goods  or  services  or  both  shall  be  the
transaction  value,  which  is  the  price  actually  paid  or  payable  for  the  said
supply  of  goods  or  services  or  both  where  the  supplier  and  the  recipient  of
the  supply  are  not  related  and  the  price  is  the  sole  consideration  for  the
supply.

Value  of
ta xab le
su ppl y.

(2) The value  of supply  shall include–––

(a) any taxes, duties, cesses, fees and charges levied under any law
for  the  time  being  in  force  other  than  this  Act,  the  Central  Goods  and
Services  Tax  Act  and  the  Goods  and  Services  Tax  (Compensation  to
States)  Act,  if  charged  separately  by  the  supplier ;

(b) any amount that the supplier is liable to pay in relation to such
supply  but  which  has  been  incurred  by  the  recipient  of  the  supply  and
not included in the price actually paid or payable for the goods or services
or  both ;

(c) incidental expenses, including commission and packing, charged
by the supplier to the recipient of a supply and any amount charged for
anything done by the supplier in respect of the supply of goods or services
or both at the time of, or before delivery of goods or supply of services ;
(d)  interest  or  late  fee  or  penalty  for  delayed  payment  of  any

consideration  for  any  supply ;  and

(e)  subsidies  directly  linked  to  the  price  excluding  subsidies

provided  by  the  Central  Government  and  State  Governments.

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Explanation.––For  the  purposes  of  this  sub-section,  the  amount  of
subsidy  shall  be  included  in  the  value  of  supply  of  the  supplier  who
receives  the  subsidy.

(3) The value of the supply shall not include any discount which is given—
(a) before or at the time of the supply if such discount has been duly

recorded  in  the  invoice  issued  in  respect  of  such  supply ;  and

(b) after the supply has been effected, if—

(i) such discount is established in terms of an agreement entered
into  at  or  before  the  time  of  such  supply  and  specifically  linked  to
relevant  invoices ;  and

(ii)  input  tax  credit  as  is  attributable  to  the  discount  on  the
basis  of document  issued by  the supplier  has been  reversed by  the
recipient  of  the  supply.

(4) Where the value of the supply of goods or services or both cannot be
determined  under  sub-section  (1),  the  same  shall  be  determined  in  such
manner as may be prescribed.

(5) Notwithstanding anything contained in sub-section (1) or sub-section
(4), the value of such supplies as may be notified by the Government on the
recommendations of the Council shall be determined in such manner as may
be  prescribed.

Explanation.—For  the  purposes  of  this  Act,—

(a) persons shall be deemed to  be “related persons’’ if —

(i) such  persons  are  officers  or  directors  of  one  another’s

businesses ;

(ii) such  persons  are  legally  recognised  partners  in  business ;
(iii) such  persons  are  employer  and  employee ;
(iv) any  person  directly  or  indirectly  owns,  controls  or  holds
twenty-five  per  cent.  or  more  of  the  outstanding  voting  stock  or
shares of both of them ;

(v) one  of  them  directly  or  indirectly  controls  the  other ;
(vi) both of them are directly or indirectly controlled by a third

person ;

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

or

(viii) they are members of the same family ;

(b)  the  term  “person”  also  includes  legal  persons ;
(c) persons  who  are  associated  in  the  business  of  one  another  in
that  one  is  the  sole  agent  or  sole  distributor  or  sole  concessionaire,
howsoever  described,  of  the  other,  shall  be  deemed  to  be  related.

CHAPTER  V
INPUT TAX CREDIT

Eligib ility
a n d
c on d it i on s
for  taking
input  tax
c r ed i t .

16.

(1)  Every  registered  person  shall,  subject  to  such  conditions  and
restrictions as may be prescribed and in the manner specified in section 49,
be  entitled  to  take  credit  of  input  tax  charged  on  any  supply  of  goods  or
services or both to  him which are used or intended to be  used in the course
or  furtherance  of  his  business  and  the  said  amount  shall  be  credited  to  the
electronic  credit  ledger  of  such  person.

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(2) Notwithstanding  anything  contained  in  this  section,  no  registered
person shall be entitled to the credit of any input tax in respect of any supply
of goods or services or both to him unless,––

(a)  he  is  in  possession  of  a  tax  invoice  or  debit  note  issued  by  a
supplier registered  under this  Act, or  such other  tax paying  documents
as may  be prescribed ;

(b) he has received the  goods or services or both.
Explanation.—For  the  purposes  of  this  clause,  it  shall  be  deemed
that  the  registered  person  has  received  the  goods  where  the  goods  are
delivered  by  the  supplier  to  a  recipient  or  any  other  person  on  the
direction  of  such  registered  person,  whether  acting  as  an  agent  or
otherwise, before or during movement of goods, either by way of transfer
of  documents  of  title  to  goods  or  otherwise ;

(c) subject to the provisions of section 41, the tax charged in respect
of such supply has been actually paid to the Government, either in cash
or  through  utilisation  of  input  tax  credit  admissible  in  respect  of  the
said  supply ;  and

(d) he has furnished the return under section 39 :
Provided  that  where  the  goods  against  an  invoice  are  received  in
lots or instalments, the registered person shall be entitled to take credit
upon  receipt of  the  last  lot or  instalment :

Provided further that where a recipient fails to pay to the supplier
of  goods  or  services  or  both,  other  than  the  supplies  on  which  tax  is
payable on reverse charge basis, the amount towards the value of supply
along with tax payable thereon within a period of one hundred and eighty
days from the date of issue of invoice by the supplier, an amount equal
to  the  input  tax  credit  availed  by  the  recipient  shall  be  added  to  his
output tax liability, along with interest thereon, in such manner as may
be  prescribed :

43  of
1961.

Provided  also  that  the  recipient  shall  be  entitled  to  avail  of  the
credit of input tax on payment made by him of the amount towards the
value  of  supply  of  goods  or  services  or  both  along  with  tax  payable
thereon.
(3) Where  the  registered  person  has  claimed  depreciation  on  the  tax
component  of  the  cost  of  capital  goods  and  plant  and  machinery  under  the
provisions  of  the  Income-tax  Act,  1961,  the  input  tax  credit  on  the  said  tax
component  shall  not  be  allowed.

(4) A  registered  person  shall  not  be entitled  to  take  input  tax  credit  in
respect  of  any  invoice  or  debit  note  for  supply  of  goods  or  services  or  both
after the due date of furnishing of the return under section 39 for the month
of  September  following  the  end  of  financial  year  to  which  such  invoice  or
invoice  relating  to  such  debit  note  pertains  or  furnishing  of  the  relevant
annual  return,  whichever  is  earlier.

17.

(1) Where the goods or services or both are used by the registered
person partly for the purpose of any business and partly for other purposes,
the  amount  of  credit  shall  be  restricted  to  so  much  of  the  input  tax  as  is
attributable to  the purposes  of his  business.

A p p o r t i o n -
ment  of
credit  and
b l o c k e d
cr ed it s.

(2) Where the goods or services or both are used by the registered person
partly for effecting taxable supplies including zero-rated supplies under this
Act  or  under  the  Integrated  Goods  and  Services  Tax  Act  and  partly  for

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effecting exempt supplies under the said Acts, the amount of credit shall be
restricted  to  so  much  of  the  input  tax  as  is  attributable  to  the  said  taxable
supplies  including  zero-rated  supplies.

(3) The  value  of  exempt  supply  under  sub-section  (2)  shall  be  such  as
may be prescribed, and shall include supplies on which the recipient is liable
to  pay  tax  on  reverse  charge  basis,  transactions  in  securities,  sale  of  land
and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.

(4) A banking company or a financial institution including a non-banking
financial company, engaged in supplying services by way of accepting deposits,
extending loans or advances shall have the option to either comply with the
provisions  of  sub-section  (2),  or  avail  of,  every  month,  an  amount  equal  to
fifty  per  cent.  of  the  eligible  input  tax  credit  on  inputs,  capital  goods  and
input services in that month and the rest shall lapse :

Provided  that  the  option  once  exercised  shall  not  be  withdrawn  during

the remaining part of the financial year :

Provided  further  that  the  restriction  of  fifty  percent.  shall  not  apply  to
the tax paid on supplies made by one registered person to another registered
person  having  the same  Permanent  Account  Number.

(5) Notwithstanding anything contained in sub-section (1) of section 16
and  sub-section  (1)  of  section  18,  input  tax  credit  shall  not  be  available  in
respect  of  the  following,  namely :—

(a)  motor  vehicles  and  other  conveyances  except  when  they  are

used––

(i) for making the following taxable supplies, namely :––

(A)  further  supply  of  such  vehicles  or  conveyances ;  or
(B)  transportation  of  passengers ;  or
(C)  imparting  training  on  driving,  flying,  navigating  such

vehicles  or  conveyances ;
(ii)  for  transportation  of  goods ;

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

(i)  food  and  beverages,  outdoor  catering,  beauty  treatment,
health  services,  cosmetic  and  plastic  surgery  except  where  an
inward  supply  of  goods  or  services  or  both  of  a  particular  category
is used by a registered person for making an outward taxable supply
of the same category of goods or services or both or as an element of
a  taxable  composite  or  mixed  supply ;

(ii) membership of a club, health and fitness centre ;
(iii)  rent-a-cab,  life  insurance  and  health  insurance  except

where—

(A)  the  Government  notifies  the  services  which  are
obligatory  for  an  employer  to  provide  to  its  employees  under
any law for the time being in force ; or

(B)  such  inward  supply  of  goods  or  services  or  both  of  a
particular  category  is  used  by  a  registered  person  for  making
an  outward  taxable  supply  of  the  same  category  of  goods  or
services  or  both  or  as  part  of  a  taxable  composite  or  mixed
supply ;  and
(iv)  travel benefits  extended to  employees on  vacation such  as

leave  or  home  travel  concession.

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(c)  works  contract  services  when  supplied  for  construction  of  an
immovable  property  (other  than  plant  and  machinery)  except  where  it
is  an  input  service  for  further  supply  of  works  contract  service ;

(d)  goods  or  services  or  both  received  by  a  taxable  person  for
construction of  an immovable  property (other  than plant  or machinery)
on  his  own  account  including  when  such  goods  or  services  or  both  are
used  intercourse  or  furtherance  of  business.

Explanation.––For the purposes of clauses (c) and (d), the expression
“construction”  includes  re-construction,  renovation,  additions  or
alterations  or  repairs,  to  the  extent  of  capitalisation,  to  the  said
immovable  property ;

(e)  goods  or  services  or  both  on  which  tax  has  been  paid  under

section10 ;

(f)  goods  or  services  or  both  received  by  a  non-resident  taxable

person  except  on  goods  imported  by  him ;

(g) goods  or  services  or  both  used  for  personal  consumption ;
(h) goods lost, stolen, destroyed, written off or disposed of by way of

gift or free samples ; and

(i) any tax paid in accordance with the provisions of sections 74, 129

and 130.
(6) The  Government  may  prescribe  the  manner  in  which  the  credit

referred to in sub-sections (1) and (2) may be attributed.

Explanation.––  For  the  purposes  of  this  Chapter  and  Chapter  VI,  the
expression  “plant  and  machinery”  means  apparatus,  equipment,  and
machinery  fixed  to  earth  by  foundation  or  structural  support  that  are  used
for  making  outward  supply  of  goods  or  services  or  both  and  includes  such
foundation  and  structural  supports  but  excludes—

(i) land, building or any other civil structures ;
(ii)  telecommunication  towers ;  and
(iii)  pipelines  laid  outside  the  factory  premises.

18.
prescribed–

(1) Subject  to  such  conditions  and  restrictions  as  may  be

(a) a person who has applied for registration under this Act within
thirty days from the date on which he becomes liable to registration and
has  been  granted  such  registration  shall  be  entitled  to  take  credit  of
input tax in respect of inputs held in stock and inputs contained in semi-
finished or finished goods held in stock on the day immediately preceding
the date from which he becomes liable to pay tax under the provisions of
this  Act ;

(b) a person who takes registration under sub-section (3) of section
25 shall be entitled to take credit of input tax in respect of inputs held in
stock  and  inputs  contained  in  semi-finished  or  finished  goods  held  in
stock on the day immediately preceding the date of grant of registration ;
(c) where any registered person ceases to pay tax under section 10,
he shall be entitled  to take credit of input tax in  respect of inputs held
in stock, inputs contained in semi-finished or finished goods held in stock
and  on  capital  goods  on  the  day  immediately  preceding  the  date  from
which he becomes liable to pay tax under section 9 :

Provided  that  the  credit  on  capital  goods  shall  be  reduced  by  such

percentage  points  as  may  be  prescribed ;

Availability
of  credit  in
s pe c ia l
c i rc u m -
sta nces.

24

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(d)  where  an  exempt  supply  of  goods  or  services  or  both  by  a
registered person becomes a taxable supply, such person shall be entitled
to take credit of input tax in respect  of inputs held in stock and inputs
contained  in  semi-finished  or  finished  goods  held  in  stock  relatable  to
such exempt supply and on capital goods exclusively used for such exempt
supply on the day immediately preceding the date from which such supply
becomes  taxable :

Provided  that  the  credit  on  capital  goods  shall  be  reduced  by  such

percentage  points  as  may  be  prescribed.
(2) A  registered  person  shall  not  be  entitled  to  take  input  tax  credit
under sub-section (1) in respect of any supply of goods or services or both to
him after the expiry of one year from the date of issue of tax invoice relating
to such  supply.

(3) Where  there  is  a  change  in  the  constitution  of  a  registered  person
on account of sale, merger, demerger, amalgamation, lease or transfer of the
business  with  the  specific  provisions  for  transfer  of  liabilities,  the  said
registered  person  shall  be  allowed  to  transfer  the  input  tax  credit  which
remains  unutilised  in  his  electronic  credit  ledger  to  such  sold,  merged,
demerged,  amalgamated,  leased  or  transferred  business  in  such  manner  as
may  be  prescribed.

(4) Where  any  registered  person  who  has  availed  of  input  tax  credit
opts  to  pay  tax  under  section  10  or,  where  the  goods  or  services  or  both
supplied  by  him  become  wholly  exempt,  he  shall  pay  an  amount,  by  way  of
debit  in  the  electronic  credit  ledger  or  electronic  cash  ledger,  equivalent  to
the credit of input tax in respect of inputs held in stock and inputs contained
in semi-finished or finished goods held in stock and on capital goods, reduced
by  such  percentage  points  as  may  be  prescribed,  on  the  day  immediately
preceding  the  date  of  exercising  of  such  option  or,  as  the  case  may  be,  the
date  of  such  exemption :

Provided  that  after  payment  of  such  amount,  the  balance  of  input  tax

credit,  if  any,  lying  in  his  electronic  credit  ledger  shall  lapse.

(5)  The amount of credit under sub-section (1) and the amount payable
under sub-section (4) shall be calculated in such manner as may be prescribed.
(6) In case of supply of capital goods or plant and machinery, on which
input  tax  credit  has  been  taken,  the  registered  person  shall  pay  an  amount
equal  to  the  input  tax  credit  taken  on  the  said  capital  goods  or  plant  and
machinery  reduced  by  such  percentage  points  as  may  be  prescribed  or  the
tax  on  the  transaction  value  of  such  capital  goods  or  plant  and  machinery
determined  under  section  15,  whichever  is  higher :

Provided that where refractory bricks, moulds and dies, jigs and fixtures
are  supplied  as  scrap,  the  taxable  person  may  pay  tax  on  the  transaction
value  of  such  goods  determined  under  section  15.

19.

(1)  The  principal  shall,  subject  to  such  conditions  and  restrictions
as  may  be  prescribed,  be  allowed  input  tax  credit  on  inputs  sent  to  a  job
worker  for  job  work.

(2) Notwithstanding  anything  contained  in  clause  (b)  of  sub-section  (2)
of  section  16,  the  principal  shall  be  entitled  to  take  credit  of  input  tax  on
inputs even if the inputs are directly sent to a jobworker for jobwork without
being first brought to his place of business.

T a k ing
input  tax
credit  in
respect  of
inputs  and
ca pita l
goods  sent
for  job
w o r k .

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25

(3) Where  the  inputs  sent  for  jobwork  are  not  received  back  by  the
principal  after  completion  of  jobwork  or  otherwise  or  are  not  supplied  from
the place of business of the jobworker in accordance with clause (a) or clause
(b) of sub-section (1) of section 143 within one year of being sent out, it shall
be  deemed  that  such  inputs  had  been  supplied  by  the  principal  to  the
jobworker on the day when the said inputs were sent out :

Provided  that  where  the  inputs  are  sent  directly  to  a  jobworker,  the
period of one year shall be counted from the date of receipt of inputs by the
jobworker.

(4) The  principal  shall,  subject  to  such  conditions  and  restrictions  as
may  be  prescribed,  be  allowed  input  tax  credit  on  capital  goods  sent  to  a
jobworker  for  jobwork.

(5) Notwithstanding  anything  contained  in  clause  (b)  of  sub-section  (2)
of  section  16,  the  principal  shall  be  entitled  to  take  credit  of  input  tax  on
capital  goods  even  if  the  capital  goods  are  directly  sent  to  a  jobworker  for
jobwork without being first brought to his place of business.

(6) Where  the  capital  goods  sent  for  jobwork  are  not  received  back  by
the  principal  within  a  period  of  three  years  of  being  sent  out,  it  shall  be
deemed  that  such  capital  goods  had  been  supplied  by  the  principal  to  the
jobworker on the  day when the said capital goods  were sent out :

Provided  that  where  the  capital  goods  are  sent  directly  to  a  jobworker,
the period of three years shall be counted from the date of receipt of capital
goods  by  the  jobworker.

(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to
moulds and dies, jigs and fixtures, or tools sent out to a jobworker for jobwork.
Explanation.—For  the  purpose  of  this  section,  “principal”  means  the

person  referred  to  in  section  143.

20.

(1) The Input Service Distributor shall distribute the credit of State
tax  as  State  tax  or  integrated  tax  and  integrated  tax  as  integrated  tax  or
State  tax,  by  way  of  issue  of  document  containing  the  amount  of  input  tax
credit being distributed in such  manner as may be prescribed.

(2) The  Input  Service  Distributor  may  distribute  the  credit  subject  to

the  following  conditions,  namely :––

(a) the credit can be distributed to the recipients of credit against a

document  containing  such  details  as  may  be  prescribed ;

(b) the amount of the credit distributed shall not exceed the amount

of  credit  available  for  distribution ;

(c) the credit of tax paid on input services attributable to a recipient

of  credit  shall  be  distributed  only  to  that  recipient ;

(d) the credit of tax paid on input services attributable to more than
one  recipient  of  credit  shall  be  distributed  amongst  such  recipients  to
whom  the  input  service  is  attributable  and  such  distribution  shall  be
pro rata  on the  basis  of the  turnover in  a  State or  turnover  in a  Union
territory  of  such  recipient,  during  the  relevant  period,  to  the  aggregate
of  the  turnover  of  all  such  recipients  to  whom  such  input  service  is
attributable  and  which  are  operational  in  the  current  year,  during  the
said  relevant  period ;

(e)  the  credit  of  tax  paid  on  input  services  attributable  to  all
recipients  of  credit  shall  be  distributed  amongst  such  recipients  and
such distribution shall be pro rata on the basis of the turnover in a State

¦ÉÉMÉ +É`ö--94-4

Manner  of
distribution
of  credit  by
I n p u t
S e r v i c e
Distributor.

26

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or  turnover  in  a  Union  territory  of  such  recipient,  during  the  relevant
period,  to  the  aggregate  of  the  turnover  of  all  recipients  and  which  are
operational  in  the  current  year,  during  the  said  relevant  period.

Explanation.––For  the  purposes  of  this  section,––

(a)  the  “relevant  period”  shall  be––

(i) if the recipients of credit have turnover in their States
or  Union  territories  in  the  financial  year  preceding  the  year
during which credit is to be distributed, the said financial year ;
or

(ii)  if  some  or  all  recipients  of  the  credit  do  not  have  any
turnover  in  their  States  or  Union  territories  in  the  financial
year  preceding  the  year  during  which  the  credit  is  to  be
distributed, the last quarter for which details of such turnover
of all the recipients are available, previous to the month during
which  credit  is  to  be  distributed ;
(b)  the  expression  “recipient  of  credit”  means  the  supplier  of
goods  or  services  or  both  having  the  same  Permanent  Account
Number as that of the Input Service Distributor ;

(c)  the  term  “turnover”,  in  relation  to  any  registered  person
engaged in the supply of taxable goods as well as goods not taxable
under this Act, means the value of turnover, reduced by the amount
of  any  duty  or  tax  levied  under  entry  84  of  List  I  of  the  Seventh
Schedule  to  the  Constitution  and  entry  51  and  54  of  List  II  of  the
said  Schedule.

Manner  of
recovery  of
c r e d i t
di stri b ut ed
in  excess.

21. Where  the  Input  Service  Distributor  distributes  the  credit  in
contravention  of  the  provisions  contained  in  section  20  resulting  in  excess
distribution of credit to one or more recipients of credit, the excess credit so
distributed  shall  be  recovered  from  such  recipients  along  with  interest,  and
the provisions of section 73 or section 74, as the case may be, shall, mutatis
mutandis,  apply  for  determination  of  amount  to  be  recovered.

CHAPTER  VI
REGISTRATION

P e r s o n s
liable  for
registration.

22.

(1) Every supplier making a taxable supply of goods or services or
both in the State shall be liable to be registered under this Act if his aggregate
turnover  in  a  financial  year  exceeds  twenty  lakh  rupees :

Provided  that  where  such  person  makes  taxable  supplies  of  goods  or
services or both from any of the special category States, he shall be liable to
be  registered  if  his  aggregate  turnover  in  a  financial  year  exceeds  ten  lakh
rupees.

(2) Every person who, on the day immediately preceding the appointed
day, is registered or holds a licence under an existing law, shall be liable to
be  registered  under  this  Act  with  effect  from  the  appointed  day.

(3) Where  a  business  carried  on  by  a  taxable  person  registered  under
this  Act  is  transferred,  whether  on  account  of  succession  or  otherwise,  to
another  person  as  a  going  concern,  the  transferee  or  the  successor,  as  the
case may be, shall be liable to be registered with effect from the date of such
transfer  or  succession.

(4) Notwithstanding anything contained in sub-sections (1) and (3), in a
case  of  transfer  pursuant  to  sanction  of  a  scheme  or  an  arrangement  for

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27

amalgamation  or,  as  the  case  may  be,  de-merger  of  two  or  more  companies
pursuant to an order of a High Court, Tribunal or otherwise, the transferee
shall be liable to be registered, with effect from the date on which the Registrar
of Companies issues a certificate of incorporation giving effect to such order
of the High Court or Tribunal.

Explanation.––For  the  purposes  of  this  section,––

(i)  the  expression  “aggregate  turnover”  shall  include  all  supplies
made  by  the  taxable  person,  whether  on  his  own  account  or  made  on
behalf of all his principals ;

(ii) the supply of goods, after completion of job work, by a registered
jobworker 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  jobworker ;

(iii)  the expression  “special category  States” shall  mean the  States
as  specified  in  sub-clause  (g)  of  clause  (4)  of  article  279A  of  the
Constitution.

23.
namely :—

(1)  The  following  persons  shall  not  be  liable  to  registration,

(a)  any  person  engaged  exclusively  in  the  business  of  supplying
goods  or  services  or  both  that  are  not  liable  to  tax  or  wholly  exempt
from tax under this Act or under the Integrated Goods and Services Tax
Act ;

(b)  an  agriculturist,  to  the  extent  of  supply  of  produce  out  of

cultivation  of  land.
(2) The  Government  may,  on  the  recommendations  of  the  Council,  by
notification,  specify  the  category  of  persons  who  may  be  exempted  from
obtaining  registration  under  this  Act.

P e r s o n s
not  liable
f o r
registration.

24. Notwithstanding  anything  contained  in  sub-section  (1)  of  section
22,  the  following  categories  of  persons  shall  be  required  to  be  registered
under  thisAct,—

Compulsory
registration
in  certain
ca ses.

(i) persons making any inter-State taxable supply ;
(ii) casual taxable persons making taxable supply ;
(iii)  persons  who  are  required to  pay  tax  under  reverse  charge ;
(iv)  person  who  are  required  to  pay  tax  under  sub-section  (5)  of

section  9 ;

(v)  non-resident  taxable  persons  making  taxable  supply ;
(vi)  persons  who  are  required  to  deduct  tax  under  section  51,

whether  or  not  separately  registered  under  this  Act ;

(vii)  persons who  make  taxable supply  of goods  or  services or  both

on behalf of other taxable persons whether as an agent or otherwise ;

(viii) Input Service Distributor, whether or not separately registered

under  this  Act ;

(ix) persons who supply goods or services or both, other than supplies
specified  under  sub-section  (5)  of  section  9,  through  such  electronic
commerce  operator  who  is  required  to  collect  tax  at  source  under
section  52 ;

(x)  every  electronic  commerce  operator ;

¦ÉÉMÉ +É`ö--94-4+

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(xi) every person supplying online information and data base access
or  retrieval  services  from  a  place  outside  India  to  a  person  in  India,
other  than  a  registered  person ;  and

(xii) such other person or class of persons as may be notified by the

Government  on  the  recommendations  of  the  Council.

P r o c e d u r e
f o r
registration.

25.

(1) Every person who is liable to be registered under section 22 or
section  24  shall  apply  for  registration  within  thirty  days  from  the  date  on
which he becomes liable to registration, in such manner and subject to such
conditions  as  may  be  prescribed :

Provided  that  a casual  taxable  person  or  a non-resident  taxable  person
shall  apply  for  registration  at  least  five  days  prior  to  the  commencement  of
business.

Explanation.—Every  person  who  makes  a  supply  from  the  territorial
waters of India shall obtain registration in the State where the nearest point
of  the appropriate  baseline  is  located in  the  State.

(2) A person seeking registration under this Act shall be granted a single

registration :

Provided  that  a  person  having  multiple  business  verticals  in  the  State
may be granted a separate registration for each business vertical, subject to
such  conditions  as  may  be  prescribed.

(3) A  person,  though  not  liable  to  be  registered  under  section  22  or
section  24  may  get  himself  registered  voluntarily,  and  all  provisions  of  this
Act, as are applicable  to a registered person, shall apply  to such person.

(4) A  person  who  has  obtained  or  is  required  to  obtain  more  than  one
registration, whether in one State or Union territory or more than one State
or  Union  territory  shall,  in  respect  of  each  such  registration,  be  treated  as
distinct  persons  for  the  purposes  of  this  Act.

(5) Where a person who has obtained or is required to obtain registration
in  a  State  or  Union  territory  in  respect  of  an  establishment,  has  an
establishment in another State or Union territory, then such establishments
shall be treated as establishments of distinct persons for the purposes of this
Act.

(6) Every person shall have a Permanent Account Number issued under

the Income-tax Act, 1961 in order to be eligible for grant of registration :

Provided  that  a  person  required  to  deduct  tax  under  section  51  may
have, in lieu of a Permanent Account Number, a Tax Deduction and Collection
Account Number issued under the said Act in order to be eligible for grant of
registration.

(7) Notwithstanding  anything  contained  in  sub-section  (6),  a  non-
resident taxable person may be granted registration under sub-section (1) on
the basis of such other documents as may be prescribed.

(8) Where a person who is liable to be registered under this Act fails to
obtain  registration,  the  proper  officer  may,  without  prejudice  to  any  action
which may be taken under this Act or under any other law for the time being
in force, proceed to register such person in such manner as may be prescribed.

(9) Notwithstanding  anything  contained  in  sub-section  (1),––

43  of
1961.

(a)  any  specialised  agency  of  the  United  Nations  Organisation  or
any  Multilateral  Financial  Institution  and  Organisation  notified  under
the United Nations (Privileges and Immunities) Act, 1947, Consulate or
Embassy  of  foreign  countries ;  and

46  of
1947.

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29

(b)  any  other  person  or  class  of  persons,  as  may  be  notified  by  the

Commissioner,

shall  be  granted  a  Unique  Identity  Number  in  such  manner  and  for  such
purposes,  including  refund  of  taxes  on  the  notified  supplies  of  goods  or
services or  both received by  them, as may  be prescribed.

(10) The  registration  or  the  Unique  Identity  Number  shall  be  granted
or  rejected  after  due  verification  in  such  manner  and  within  such  period  as
may  be  prescribed.

(11) A  certificate  of  registration  shall  be  issued  in  such  form  and  with

effect from such date as may be prescribed.

(12) A  registration  or  a  Unique  Identity  Number  shall  be  deemed  to
have been granted after the expiry of the period prescribed under sub-section
(10),  if  no  deficiency  has  been  communicated  to  the  applicant  within  that
period.

26.

(1) The grant of registration or the Unique Identity Number under
the  Central  Goods  and  Services  Tax  Act  shall  be  deemed  to  be  a  grant  of
registration  or  the  Unique  Identity  Number  under  this  Act  subject  to  the
condition that the application for registration or the Unique Identity Number
has not been rejected under this Act within the time specified in sub-section
(10) of section 25.

(2) Notwithstanding  anything  contained  in  sub-section  (10)  of  section
25, any rejection of application for registration or the Unique Identity Number
under the Central Goods and Services Tax Act shall be deemed to be a rejection
of  application  for  registration  under  this  Act.

27.

(1) The certificate of registration issued to a casual taxable person
or a non-resident taxable person shall be valid for the period specified in the
application  for  registration  or  ninety  days  from  the  effective  date  of
registration, whichever is earlier and such person shall make taxable supplies
only  after  the  issuance  of  the  certificate  of  registration :

Provided that the proper officer may, on sufficient cause being shown by
the  said  taxable  person,  extend  the  said  period  of  ninety  days  by  a  further
period  not  exceeding  ninety  days.

(2) A  casual  taxable  person  or  a  non-resident  taxable  person  shall,  at
the time of submission of application for registration under sub-section (1) of
section  25,  make  an  advance  deposit  of  tax  in  an  amount  equivalent  to  the
estimated tax liability of such person for the period for which the registration
is  sought :

Provided  that  where  any  extension  of  time  is  sought  under  sub-section
(1), such taxable person shall deposit an additional amount of tax equivalent
to  the  estimated  tax  liability  of  such  person  for  the  period  for  which  the
extension  is  sought.

(3) The amount deposited under sub-section (2) shall be credited to the
electronic  cash  ledger  of  such  person  and  shall  be  utilised  in  the  manner
provided  under  section  49.

D e e m e d
registration.

S p ec ia l
p ro v is i on s
relating  to
casua l
ta xab le
person  and
n o n -
r e s i d e n t
ta xab le
p e r s o n .

28.

(1) Every registered person and a person to whom a Unique Identity
Number has been assigned shall inform the proper officer of any changes in
the  information furnished  at the  time  of registration  or subsequent  thereto,
in such form and manner and within such period as may be prescribed.

Amendment
o f
registration.

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Cancellation
o f
registration.

(2) The proper officer may, on the basis of information furnished under
sub-section  (1)  or  as  ascertained  by  him,  approve  or  reject  amendments  in
the  registration  particulars  in  such  manner  and  within  such  period  as  may
be  prescribed :

Provided  that  approval  of  the  proper  officer  shall  not  be  required  in

respect  of amendment  of  such particulars  as  may be  prescribed :

Provided  further  that  the  proper  officer  shall  not  reject  the  application
for  amendment  in  the  registration  particulars  without  giving  the  person  an
opportunity  of  being  heard.

(3) Any  rejection  or  approval  of  amendments  under  the  Central  Goods
and Services Tax Act shall be deemed to be a rejection or approval under this
Act.

29.

(1)  The  proper  officer  may,  either  on  his  own  motion  or  on  an
application  filed  by  the  registered  person  or  by  his  legal  heirs,  in  case  of
death  of  such  person,  cancel  the  registration,  in  such  manner  and  within
such period as may be prescribed, having regard to the circumstances where,—
(a)  the  business  has  been  discontinued,  transferred  fully  for  any
reason including death of the proprietor, amalgamated with other legal
entity,  demerged  or  otherwise  disposed  of ;  or

(b) there is any change in the constitution of the business ; or
(c) the taxable person, other than the person registered under sub-
section (3) of section 25, is no longer liable to be registered under section
22 or section 24.
(2) The proper officer may cancel the registration of a person from such

date, including any retrospective date, as  he may deem fit, where,––

(a)  a  registered  person  has  contravened  such  provisions  of  the  Act

or  the rules  made thereunder  as may  be prescribed ;  or

(b) a person paying tax under section 10 has not furnished returns

for  three  consecutive  tax  periods ;  or

(c)  any  registered  person,  other  than  a  person  specified  in  clause
(b), has not furnished returns for a continuous period of six months ; or
(d)  any  person  who  has  taken  voluntary  registration  under  sub-
section (3) of section 25 has not commenced business within six months
from  the  date  of  registration ;  or

(e)  registration  has  been  obtained  by  means  of  fraud,  wilful

misstatement  or  suppression  of  facts :

Provided  that  the  proper  officer  shall  not  cancel  the  registration

without  giving  the  person  an  opportunity  of  being  heard.
(3) The  cancellation  of  registration  under  this  section  shall  not  affect
the  liability  of  the  person  to  pay  tax  and  other  dues  under  this  Act  or  to
discharge  any  obligation  under  this  Act  or  the  rules  made  thereunder  for
any  period  prior  to  the  date  of  cancellation  whether  or  not  such  tax  and
other  dues  are  determined  before  or  after  the  date  of  cancellation.

(4) The cancellation of registration under the Central Goods and Services
Tax Act shall be deemed to be a cancellation of registration under this Act.
(5) Every  registered  person  whose  registration  is  cancelled  shall  pay
an amount, by way of debit in  the electronic credit ledger or electronic cash
ledger, equivalent to the credit of input tax in respect of inputs held in stock
and inputs contained in semi-finished or finished goods held in stock or capital

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31

goods or plant and machinery on the day immediately preceding the date of
such cancellation or the output tax payable on such goods, whichever is higher,
calculated in such manner as may be prescribed :

Provided that in case of capital goods or plant and machinery, the taxable
person  shall  pay  an  amount  equal  to  the  input  tax  credit  taken  on  the  said
capital goods or plant and machinery, reduced by such percentage points as
may be prescribed or the tax on the transaction value of such capital goods or
plant and  machinery under  section 15,  whichever is  higher.

(6) The amount payable under sub-section (5) shall be calculated in such

manner as may be prescribed.

30.

(1) Subject to such conditions as may be prescribed, any registered
person,  whose  registration  is  cancelled  by  the  proper  officer  on  his  own
motion,  may  apply  to  such  officer  for  revocation  of  cancellation  of  the
registration  in  the  prescribed  manner  within  thirty  days  from  the  date  of
service  of  the  cancellation  order.

R e v o c a t i o n
o f
cancellation
o f
registration.

(2) The  proper  officer  may,  in  such  manner  and  within  such  period  as
may be prescribed, by order, either revoke cancellation of the registration or
reject  the  application :

Provided that the application for revocation of cancellation of registration
shall  not  be  rejected  unless  the  applicant  has  been  given  an  opportunity  of
being  heard.

(3) The  revocation  of  cancellation  of  registration  under  the  Central
Goods and Services Tax Act shall be deemed to be a revocation of cancellation
of  registration  under  this  Act.

CHAPTER  VII
TAX INVOICE, CREDIT AND DEBIT NOTES

31.
the time of,––

(1)  A registered  person supplying  taxable  goods shall,  before or  at

T a x
in voic e.

(a)  removal  of  goods  for  supply  to  the  recipient,  where  the  supply

involves  movement  of  goods ;  or

(b) delivery of goods or making available thereof to the recipient, in

any other case,

issue a tax invoice showing the description, quantity and value of goods, the
tax charged  thereon and  such other  particulars as  may be  prescribed :

Provided  that  the  Government  may,  on  the  recommendations  of  the
Council, by notification, specify the categories of goods or supplies in respect
of which a tax invoice shall be issued, within such time and in such manner
as may be prescribed.

(2) A registered person supplying taxable services shall, before or after
the  provision  of  service  but  within  a  prescribed  period,  issue  a  tax  invoice,
showing the description, value, tax charged thereon and such other particulars
as may  be prescribed :

Provided  that  the  Government  may,  on  the  recommendations  of  the
Council, by notification and subject to such conditions as may be mentioned
therein,  specify  the  categories  of  services  in  respect  of  which––

(a)  any  other  document  issued  in  relation  to  the  supply  shall  be

deemed to be a tax invoice ; or

(b) tax invoice may not be issued.

32

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(3) Notwithstanding anything  contained in  sub-sections (1) and  (2)––

(a)  a  registered  person  may,  within  one  month  from  the  date  of
issuance  of  certificate  of  registration  and  in  such  manner  as  may  be
prescribed,  issue  a  revised  invoice  against  the  invoice  already  issued
during  the  period  beginning  with  the  effective  date  of  registration  till
the  date  of  issuance  of  certificate  of  registration  to  him ;

(b) a registered person may not issue a tax invoice if the value of the
goods  or  services  or  both  supplied  is  less  than  two  hundred  rupees
subject to such conditions and in such manner as may be prescribed ;

(c)  a  registered  person  supplying  exempted  goods  or  services  or
both or paying tax under the provisions of section 10 shall issue, instead
of a tax invoice, a bill of supply containing such particulars and in such
manner as may be prescribed :

Provided that the registered person may not issue a bill of supply if
the  value  of  the  goods  or  services  or  both  supplied  is  less  than  two
hundred  rupees  subject  to  such  conditions  and  in  such  manner  as  may
be  prescribed ;

(d)  a  registered  person  shall,  on  receipt  of  advance  payment  with
respect to any supply of goods or services or both, issue a receipt voucher
or any other document, containing such particulars as may be prescribed,
evidencing  receipt  of  such  payment ;

(e) where, on receipt of advance payment with respect to any supply
of  goods  or  services  or  both  the  registered  person  issues  a  receipt
voucher, but subsequently no supply is made and no tax invoice is issued
in pursuance thereof, the said registered person may issue to the person
who had made the payment, a refund voucher against such payment ;

(f) a registered person who is liable to pay tax under sub-section (3)
or sub-section (4) of section 9 shall issue an invoice in respect of goods or
services or both received by him from the supplier who is not registered
on  the date  of  receipt of  goods  or  services or  both ;

(g) a registered person who is liable to pay tax under sub-section (3)
or sub-section (4) of section 9 shall issue a payment voucher at the time
of making payment to the supplier.
(4) In  case  of  continuous  supply  of  goods,  where  successive  statements
of  accounts  or successive  payments  are  involved,  the  invoice shall  be  issued
before  or  at  the  time  each  such  statement  is  issued  or,  as  the  case  may  be,
each  such  payment  is  received.

(5) Subject  to  the  provisions  of  clause  (d)  of  sub-section  (3),  in  case  of

continuous  supply  of  services,––

(a) where the due date of payment is ascertainable from the contract,

the invoice shall be issued on or before the due date of payment ;

(b)  where  the  due  date  of  payment  is  not  ascertainable  from  the
contract,  the  invoice  shall  be  issued  before  or  at  the  time  when  the
supplier  of  service  receives  the  payment ;

(c)  where  the  payment  is  linked  to  the  completion  of  an  event,  the
invoice shall be issued on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before
the completion of the supply, the invoice shall be issued at the time when the
supply  ceases  and  such  invoice  shall  be  issued  to  the  extent  of  the  supply
made  before  such  cessation.

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33

(7) Notwithstanding  anything  contained  in  sub-section  (1),  where  the
goods being sent or taken on approval for sale or return are removed before
the  supply  takes  place,  the  invoice  shall  be  issued  before  or  at  the  time  of
supply or  six months from the  date of removal, whichever  is earlier.

Explanation.––For  the  purposes  of  this  section,  the  expression  “tax
invoice” shall include any revised invoice issued by the supplier in respect of
a  supply  made  earlier.

32.

(1)  A  person  who  is  not  a  registered  person  shall  not  collect  in
respect of any supply of goods or services or both any amount by way of tax
under  this  Act.

(2) No registered person shall collect tax except in accordance with the

P rohib ition
of  un-
a ut ho ri se d
c o ll e c ti o n
of  tax.

provisions  of  this  Act  or  the  rules  made  thereunder.

33. Notwithstanding  anything  contained  in  this  Act  or  any  other  law
for  the  time  being  in  force,  where  any  supply  is  made  for  a  consideration,
every person who is liable to pay tax for such supply shall prominently indicate
in all documents relating to assessment, tax invoice and other like documents,
the amount of tax which shall form part of the price at which such supply is
made.

Amount  of
tax  to  be
i nd i c a t e d
in  tax
invoice  and
o t h e r
d oc u m e n ts .

Credit  and
d e b i t
n ot es .

34.

(1) Where a tax invoice has been issued for supply of any goods or
services  or  both  and  the  taxable  value  or  tax  charged  in  that  tax  invoice  is
found to exceed the taxable value or tax payable in respect of such supply, or
where  the  goods  supplied  are  returned  by  the  recipient,  or  where  goods  or
services  or  both  supplied  are  found  to  be  deficient,  the  registered  person,
who has supplied such goods or services or both, may issue to the recipient a
credit  note  containing  such  particulars  as  may  be  prescribed.

(2) Any registered person who issues a credit note in relation to a supply
of goods or services or both shall declare the details of such credit note in the
return for the month during which such credit note has been issued but not
later  than  September  following  the  end  of  the  financial  year  in  which  such
supply  was  made,  or  the  date  of  furnishing  of  the  relevant  annual  return,
whichever is earlier, and the tax liability shall be adjusted in such manner as
may  be  prescribed :

Provided  that,  no  reduction  in  output  tax  liability  of  the  supplier  shall
be  permitted,  if  the  incidence  of  tax  and  interest  on  such  supply  has  been
passed  on to  any other  person.

(3) Where a tax invoice has been issued for supply of any goods or services
or both and the taxable value or tax charged in that tax invoice is found to be
less  than  the  taxable  value  or  tax  payable  in  respect  of  such  supply,  the
registered  person,  who  has  supplied  such  goods  or  services  or  both,  shall
issue  to  the  recipient  a  debit  note  containing  such  particulars  as  may  be
prescribed.

(4) Any registered person who issues a debit note in relation to a supply
of goods or services or both shall declare the details of such debit note in the
return for the month during which such debit note has been issued and the
tax liability shall be adjusted in such manner as may be prescribed.

Explanation.––For  the purposes  of this  Act, the  expression “debit  note”

shall  include  a  supplementary  invoice.

¦ÉÉMÉ +É`ö--94-5

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CHAPTER  VIII
ACCOUNTS AND RECORDS

A c c o u n t s
and  other
r e c o r d s .

35.

(1) Every registered person shall keep and maintain, at his principal
place  of  business,  as  mentioned  in  the  certificate  of  registration,  a  true  and
correct  account  of—

(a)  production  or  manufacture  of  goods ;
(b) inward and  outward supply of goods or  services or both ;
(c)  stock  of  goods ;
(d) input  tax credit  availed ;
(e) output tax payable and paid ; and
(f) such other particulars as may be prescribed :
Provided that where more than one place of business is specified in
the  certificate  of  registration,  the  accounts  relating  to  each  place  of
business shall be kept at such places of business :

Provided further that the registered person may keep and maintain
such  accounts  and  other  particulars  in  electronic  form  in  such  manner
as may be prescribed.
(2) Every owner or operator of warehouse or godown or any other place
used  for  storage  of  goods  and  every  transporter,  irrespective  of  whether  he
is  a  registered  person  or  not,  shall  maintain  records  of  the  consigner,
consignee and other relevant details of the goods in such manner as may be
prescribed.

(3) The Commissioner may notify a class of taxable persons to maintain
additional  accounts  or  documents  for  such  purpose  as  may  be  specified
therein.

(4) Where the Commissioner considers that any class of taxable persons
is  not  in  a  position  to  keep  and  maintain  accounts  in  accordance  with  the
provisions of this section, he may, for reasons to be recorded in writing, permit
such class of taxable persons to maintain accounts in such manner as may be
prescribed.

(5) Every  registered  person  whose  turnover  during  a  financial  year
exceeds  the  prescribed  limit  shall  get  his  accounts  audited  by  a  chartered
accountant or a cost accountant and shall submit a copy of the audited annual
accounts,  the  reconciliation  statement  under  sub-section  (2)  of  section  44
and such other documents in such form and manner as may be prescribed.

(6) Subject to the provisions of clause (h) of sub-section (5) of section 17,
where the registered person fails to account for the goods or services or both
in  accordance  with  the  provisions  of  sub-section  (1),  the  proper  officer  shall
determine  the  amount  of  tax  payable  on  the  goods  or  services  or  both  that
are not accounted for, as if such goods or services or both had been supplied
by  such  person  and  the  provisions  of  section  73  or  section74,  as  the  case
maybe, shall, mutatis mutandis, apply for determination of such tax.

Period  of
r e t e n t i o n
o f
a ccounts.

36. Every  registered  person  required  to  keep  and  maintain  books  of
account or other records in accordance with the provisions of sub-section (1)
of  section 35  shall  retain them  until  the  expiry of  seventy  two months  from
the  due  date  of  furnishing  of  annual  return  for  the  year  pertaining  to  such
accounts  and  records :

Provided that a registered person, who is a party to an appeal or revision
or  any  other  proceedings  before  any  Appellate  Authority  or  Revisional

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35

Authority  or  Appellate  Tribunal  or  court,  whether  filed  by  him  or  by  the
Commissioner,  or  is  under  investigation  for  an  offence  under  Chapter  XIX,
shall retain the books of account and other records pertaining to the subject
matter of such appeal or revision or proceedings or investigation for a period
of  one  year  after  final  disposal  of  such  appeal  or  revision  or  proceedings  or
investigation,  or  for  the  period  specified  above,  whichever  is  later.

F urnishing
details  of
o u t w a r d
sup plie s.

CHAPTER-  IX
RETURNS

37.

(1)  Every  registered  person,  other  than  an  Input  Service
Distributor,  a  non-resident  taxable  person  and  a  person  paying  tax  under
the  provisions  of  section  10  or  section  51  or  section  52,  shall  furnish,
electronically, in such form and manner as may be prescribed, the details of
outward supplies of goods or services or both effected during a tax period on
or before the tenth day of the month succeeding the said tax period and such
details  shall  be  communicated  to  the  recipient  of  the  said  supplies  within
such time and in such manner as may be prescribed :

Provided  that  the  registered  person  shall  not  be  allowed  to  furnish  the
details  of  outward  supplies  during  the  period  from  the  eleventh  day  to  the
fifteenth  day  of  the  month  succeeding  the  tax  period :

Provided further that the Commissioner may, for reasons to be recorded
in  writing,  by  notification,  extend  the  time  limit  for  furnishing  such  details
for such class of taxable persons as may be specified therein :

Provided  also  that  any  extension  of  time  limit  notified  by  the
Commissioner  of  central  tax  shall  be  deemed  to  be  notified  by  the
Commissioner.

(2) Every  registered  person  who  has  been  communicated  the  details
under sub-section (3) of section 38 or the details pertaining to inward supplies
of  Input  Service  Distributor  under  sub-section  (4)  of  section  38,  shall  either
accept  or  reject  the  details  so  communicated,  on  or  before  the  seventeenth
day, but not before the fifteenth day, of the month succeeding the tax period
and the details furnished by him under sub-section (1) shall stand amended
accordingly.

(3) Any  registered  person,  who  has  furnished  the  details  under  sub-
section  (1)  for  any  tax  period  and  which  have  remained  unmatched  under
section 42 or section 43, shall, upon discovery of any error or omission therein,
rectify  such  error  or  omission  in  such  manner  as  may  be  prescribed,  and
shall pay the tax and interest, if any, in case there is a short payment of tax
on  account  of  such  error  or  omission,  in  the  return  to  be  furnished  for  such
tax  period :

Provided that no rectification of error or omission in respect of the details
furnished under sub-section (1) shall be allowed after furnishing of the return
under section 39 for the month of September following the end of the financial
year to which such details pertain, or furnishing of the relevant annual return,
whichever  is  earlier.

Explanation.––For the purposes of this Chapter, the expression “details
of outward supplies” shall include details of invoices, debit notes, credit notes
and revised invoices issued in relation to outward supplies made during any
tax  period.

¦ÉÉMÉ +É`ö--94-5+

36

F urnishing
details  of
i n w a r d
sup plie s.

51  of
1975.

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38.

(1) Every registered person, other than an Input Service Distributor
or a non-resident taxable person or a person paying tax under the provisions
of section 10 or section 51 or section 52, shall verify, validate, modify or delete,
if required, the details relating to outward supplies and credit or debit notes
communicated  under  sub-section  (1)  of  section  37  to  prepare  the  details  of
his  inward  supplies  and  credit  or  debit  notes  and  may  include  therein,  the
details of inward supplies and credit or debit notes received by him in respect
of such supplies that have not been declared by the supplier under sub-section
(1) of section 37.

(2) Every registered person, other than an Input Service Distributor or
a non-resident taxable person or a person paying tax under the provisions of
section 10 or section 51 or section 52, shall furnish, electronically, the details
of  inward  supplies  of  taxable  goods  or  services  or  both,  including  inward
supplies  of  goods or  services  or  both on  which  the  tax  is payable  on  reverse
charge basis under this Act and inward supplies of goods or services or both
taxable  under  the  Integrated  Goods  and  Services  Tax  Act  or  on  which
integrated goods and services tax is payable under section 3 of the Customs
Tariff Act, 1975, and credit or debit notes received in respect of such supplies
during a tax period after the tenth day but on or before the fifteenth day of
the  month  succeeding  the  tax  period  in  such  form  and  manner  as  may  be
prescribed :

Provided  that  the  Commissioner  may,  for  reasons  to  be  recorded  in
writing, by notification, extend the time limit for furnishing such details for
such class of taxable persons as may be specified therein :

Provided  further  that  any  extension  of  time  limit  notified  by  the
Commissioner  of  central  tax  shall  be  deemed  to  be  notified  by  the
Commissioner.

(3) The details of supplies modified, deleted or included by the recipient
and  furnished  under  sub-section  (2)  shall  be  communicated  to  the  supplier
concerned in such manner and within such time as may be prescribed.

(4) The details of supplies modified, deleted or included by the recipient
in the return furnished under sub-section (2) or sub-section (4) of section 39
shall be communicated to the supplier concerned in such manner and within
such time as may be prescribed.

(5) Any  registered  person,  who  has  furnished  the  details  under  sub-
section  (2)  for  any  tax  period  and  which  have  remained  unmatched  under
section 42 or section 43, shall, upon discovery of any error or omission therein,
rectify  such  error  or  omission  in  the  tax  period  during  which  such  error  or
omission is noticed in such manner as may be prescribed, and shall pay the
tax and interest, if any, in case there is a short payment of tax on account of
such error or omission, in the return to be furnished for such tax period :

Provided that no rectification of error or omission in respect of the details
furnished under sub-section (2) shall be allowed after furnishing of the return
under section 39 for the month of September following the end of the financial
year to which such details pertain, or furnishing of the relevant annual return,
whichever  is  earlier.

F urnishing
of  returns.

39.

(1) Every registered person, other than an Input Service Distributor
or a non-resident taxable person or a person paying tax under the provisions
of  section  10  or  section  51  or  section  52  shall,  for  every  calendar  month  or
part thereof, furnish, in such form and manner as may be prescribed, a return,
electronically,  of  inward  and  outward  supplies  of  goods  or  services  or  both,

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37

input tax credit availed, tax payable, tax paid and such other particulars as
may  be  prescribed  on  or  before  the  twentieth  day  of  the  month  succeeding
such  calendar  month  or  part  thereof.

(2) A  registered  person  paying  tax  under  the  provisions  of  section  10
shall, for each quarter or part thereof, furnish, in such form and manner as
may be  prescribed, a return, electronically,  of turnover in the  State, inward
supplies of goods or services or both, tax payable and tax paid within eighteen
days after the end of such quarter.

(3) Every  registered  person  required  to  deduct  tax  at  source  under  the
provisions  of  section  51  shall  furnish,  in  such  form  and  manner  as  may  be
prescribed,  a  return,  electronically,  for  the  month  in  which  such  deductions
have been made within ten days after the end of such month.

(4) Every taxable person registered as an Input Service Distributor shall,
for every calendar month or part thereof, furnish, in such form and manner
as may be prescribed, a return, electronically, within thirteen days after the
end of such month.

(5) Every  registered  non-resident  taxable  person  shall,  for  every
calendar month or part thereof, furnish, in such form and manner as may be
prescribed,  a  return,  electronically,  within  twenty  days  after  the  end  of  a
calendar  month  or  within  seven  days  after  the  last  day  of  the  period  of
registration specified under sub-section (1) of section 27, whichever is earlier.
(6) The  Commissioner  may,  for  reasons  to  be  recorded  in  writing,  by
notification, extend the time limit for furnishing the returns under this section
for  such  class  of  registered  persons  as  may  be  specified  therein :

Provided that any extension of time limit notified by the Commissioner

of central tax shall be deemed to be notified by the Commissioner.

(7) Every  registered  person,  who  is  required  to  furnish  a  return  under
sub-section  (1)  or  sub-section  (2)  or  sub-section  (3)  or  sub-section  (5),  shall
pay to the Government the tax due as per such return not later than the last
date on which he is required to furnish such return.

(8) Every  registered  person  who  is  required  to  furnish  a  return  under
sub-section  (1)  or  sub-section  (2)  shall  furnish  a  return  for  every  tax  period
whether  or  not  any  supplies  of  goods  or  services  or  both  have  been  made
during  such  tax  period.

(9) Subject to the provisions of sections 37 and 38, if any registered person
after furnishing a return under sub-section (1) or sub-section (2) or sub-section
(3)  or  sub-section  (4)  or  sub-section  (5)  discovers  any  omission  or  incorrect
particulars  therein,  other  than  as  a  result  of  scrutiny,  audit,  inspection  or
enforcement activity by the tax authorities, he shall rectify such omission or
incorrect  particulars  in  the  return  to  be  furnished  for  the  month  or  quarter
during  which  such  omission  or  incorrect  particulars  are  noticed,  subject  to
payment  of  interest  under  this  Act :

Provided  that  no  such  rectification  of  any  omission  or  incorrect
particulars  shall  be  allowed  after  the  due  date  for  furnishing  of  return  for
the month of September or second quarter following the end of the financial
year, or the actual date of furnishing of relevant annual return, whichever is
earlier.

(10) A  registered  person  shall  not  be  allowed  to  furnish  a  return  for  a
tax  period  if  the  return  for  any  of  the  previous  tax  periods  has  not  been
furnished by him.

38

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

F i r s t
R e tu r n .

40. Every  registered  person  who  has  made  outward  supplies  in  the
period  between  the  date  on  which  he  became  liable  to  registration  till  the
date  on  which  registration  has  been  granted  shall  declare  the  same  in  the
first return furnished by him after grant of registration.

Claim  of
input  tax
credit  and
pr ovis ion a l
a c ce p t a n c e
t he re of .

41.

(1)  Every  registered  person  shall,  subject  to  such  conditions  and
restrictions  as  may  be  prescribed,  be  entitled  to  take  the  credit  of  eligible
input  tax,  as self-assessed,  in  his  return  and  such amount  shall  be  credited
on  a  provisional  basis  to  his  electronic  credit  ledger.

(2)  The  credit  referred  to  in  sub-section  (1)  shall  be  utilised  only  for
payment of self-assessed output tax as per the return referred to in the said
sub-section.

Matching,
r e v er s a l
a n d
reclaim  of
input  tax
c r ed i t .

42.

(1)  The  details  of  every  inward  supply  furnished  by  a  registered
person (hereafter in this section referred to as the “recipient”) for a tax period
shall,  in  such  manner  and  within  such  time  as  may  be  prescribed,  be
matched—

(a)  with  the  corresponding  details  of  outward  supply  furnished  by
the  corresponding  registered  person  (hereafter  in  this  section  referred
to  as  the  “supplier”)  in  his  valid  return  for  the  same  tax  period  or  any
preceding  tax  period ;

(b) with the integrated goods and services tax paid under section 3
of  the  Customs  Tariff  Act,  1975  in  respect  of  goods  imported  by  him ;
and

51  of
1975.

51  of
1975.

(c) for duplication of claims of input tax credit.

(2) The  claim  of  input  tax  credit  in  respect  of  invoices  or  debit  notes
relating  to  inward  supply  that  match  with  the  details  of  corresponding
outward  supply  or  with  the  integrated  goods  and  services  tax  paid  under
section 3 of the Customs Tariff Act, 1975 in respect of goods imported by him
shall be finally accepted and such acceptance shall be communicated, in such
manner as  may be prescribed, to  the recipient.

(3) Where  the  input  tax  credit  claimed  by  a  recipient  in  respect  of  an
inward  supply  is  in  excess  of  the  tax  declared  by  the  supplier  for  the  same
supply  or  the  outward  supply  is  not  declared  by  the  supplier  in  his  valid
returns, the discrepancy shall be communicated to both such persons in such
manner as may be prescribed.

(4) The duplication of claims of input tax credit shall be communicated

to the recipient in such manner as may be prescribed.

(5) The  amount  in  respect  of  which  any  discrepancy  is  communicated
under  sub-section  (3)  and  which  is  not  rectified  by  the  supplier  in  his  valid
return  for  the  month  in  which  discrepancy  is  communicated  shall  be  added
to  the  output  tax  liability  of  the  recipient,  in  such  manner  as  may  be
prescribed,  in  his  return  for  the  month  succeeding  the  month  in  which  the
discrepancy  is  communicated.

(6) The amount claimed as input tax credit that is found to be in excess
on account of duplication of claims shall be added to the output tax liability
of  the  recipient  in  his  return  for  the  month  in  which  the  duplication  is
communicated.

(7) The recipient shall be eligible to reduce, from his output tax liability,
the  amount  added  under  sub-section  (5),  if  the  supplier  declares  the  details
of  the  invoice  or  debit  note  in  his  valid  return  within  the  time  specified  in
sub-section (9) of section 39.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

39

Matching,
r e v er s a l
a n d
reclaim  of
r e d u c t i o n
in  output
t a x
liability.

(8) A recipient in whose output tax liability any amount has been added
under sub-section (5) or sub-section (6), shall be liable to pay interest at the
rate  specified  under  sub-section  (1)  of  section  50  on  the  amount  so  added
from the date of availing of credit till the corresponding additions are made
under  the  said  sub-sections.

(9) Where  any  reduction  in  output  tax  liability  is  accepted  under  sub-
section  (7),  the  interest  paid  under  sub-section  (8)  shall  be  refunded  to  the
recipient by crediting the amount in the corresponding head of his electronic
cash ledger in such manner as may be prescribed :

Provided that the amount of interest to be credited in any case shall not

exceed  the  amount  of  interest  paid  by  the  supplier.

(10)  The amount reduced from the output tax liability in contravention
of the provisions of sub-section (7) shall be added to the output tax liability of
the recipient in his return for the  month in which such contravention takes
place  and  such  recipient  shall  be  liable  to  pay  interest  on  the  amount  so
added at the rate specified in sub-section (3) of section 50.

43.

(1)  The  details  of  every  credit  note  relating  to  outward  supply
furnished by a registered person (hereafter in this section referred to as the
“supplier”)  for  a  tax  period  shall,  in  such  manner  and  within  such  time  as
may be prescribed,  be matched––

(a) with the corresponding reduction in the claim for input tax credit
by the corresponding registered person (hereafter in this section referred
to as  the “recipient”) in  his valid return  for the  same tax period  or any
subsequent  tax  period ;  and

(b) for duplication  of claims for reduction in  output tax liability.
(2) The  claim  for  reduction  in  output  tax  liability  by  the  supplier  that
matches  with  the  corresponding  reduction  in  the  claim  for  input  tax  credit
by the recipient shall be finally accepted and communicated, in such manner
as may be prescribed,  to the supplier.

(3) Where  the  reduction  of  output  tax  liability  in  respect  of  outward
supplies exceeds the corresponding reduction in the claim for input tax credit
or the corresponding credit note is not declared by the recipient in his valid
returns, the discrepancy shall be communicated to both such persons in such
manner as may be prescribed.

(4) The  duplication  of  claims  for  reduction  in  output  tax  liability  shall

be communicated to the supplier in such manner as may be prescribed.

(5) The  amount  in  respect  of  which  any  discrepancy  is  communicated
under sub-section (3) and which is not rectified by the recipient in his valid
return  for  the  month  in  which  discrepancy  is  communicated  shall  be  added
to  the  output  tax  liability  of  the  supplier,  in  such  manner  as  may  be
prescribed,  in  his  return  for  the  month  succeeding  the  month  in  which  the
discrepancy  is  communicated.

(6) The amount in respect of any reduction in output tax liability that is
found to be on  account of duplication of claims shall be  added to the output
tax  liability  of  the  supplier  in  his  return  for  the  month  in  which  such
duplication  is  communicated.

(7) The supplier shall be eligible to reduce, from his output tax liability,
the  amount  added  under  sub-section  (5)  if  the  recipient  declares  the  details
of the credit note in his valid return within the time specified in sub-section
(9) of section 39.

40

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(8) A supplier in whose output tax liability any amount has been added
under sub-section (5) or sub-section (6), shall be liable to pay interest at the
rate specified under sub-section (1) of section 50 in respect of the amount so
added from the date of such claim for reduction in the output tax liability till
the  corresponding  additions  are  made  under  the  said  sub-sections.

(9) Where  any  reduction  in  output  tax  liability  is  accepted  under  sub-
section  (7),  the  interest  paid  under  sub-section  (8)  shall  be  refunded  to  the
supplier by crediting the amount in the corresponding head of his electronic
cash ledger in such manner as may be prescribed :

Provided that the amount of interest to be credited in any case shall not

exceed  the  amount  of  interest  paid  by  the  recipient.

(10) The  amount  reduced  from  output  tax  liability  in  contravention  of
the provisions  of sub-section  (7)  shall be  added  to the  output  tax liability  of
the  supplier  in  his  return  for  the  month  in  which  such  contravention  takes
place and such supplier shall be liable to pay interest on the amount so added
at the rate specified in sub-section (3) of section 50.

44.

(1)  Every  registered  person,  other  than  an  Input  Service
Distributor, a person paying tax under section 51 or section 52, a casual taxable
person and a non-resident taxable person, shall furnish an annual return for
every  financial  year  electronically  in  such  form  and  manner  as  may  be
prescribed on or before the thirty-first day of December following the end of
such financial year.

(2) Every registered person who is required to get his accounts audited
in accordance with the provisions of sub-section (5) of section 35 shall furnish,
electronically,  the  annual  return  under  sub-section  (1)  along  with  a  copy  of
the  audited  annual  accounts  and  a  reconciliation  statement,  reconciling  the
value of supplies declared in the return furnished for the financial year with
the audited annual financial statement, and such other particulars as may be
prescribed.

A nn ua l
re tu rn .

F ina l
re tu rn .

45. Every registered person who is required to furnish a return under
sub-section (1) of section 39 and whose registration has been cancelled shall
furnish a final return within three months of the date of cancellation or date
of order of cancellation, whichever is later, in such form and manner as may
be  prescribed.

Notice  to
r e t u r n
defa ulters.

46. Where  a  registered  person  fails  to  furnish  a  return  under  section
39 or section 44 or section 45, a notice shall be issued requiring him to furnish
such return within fifteen days in such form and manner as may be prescribed.

Levy  of
late  fee.

47.

(1) Any registered person who fails to furnish the details 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 failure continues subject to
a maximum amount of five thousand rupees.

(2) Any registered person who fails to furnish the return required under
section  44  by  the  due  date  shall  be  liable  to  pay  a  late  fee  of  one  hundred
rupees  for  every  day  during  which  such  failure  continues  subject  to  a
maximum  of  an  amount  calculated  at  a  quarter  per  cent.  of  his  turnover  in
the State.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

41

48.

(1) The manner of approval of goods and services tax practitioners,
their  eligibility  conditions,  duties  and  obligations,  manner  of  removal  and
other  conditions  relevant  for  their  functioning  shall  be  such  as  may  be
prescribed.

Goods  and
s e r v i c e s
tax  practi-
ti oner s.

(2) A  registered  person  may  authorise  an  approved  goods  and  services
tax practitioner  to furnish  the details  of outward  supplies under  section 37,
the details of inward supplies under section 38 and the return under section
39 or section 44 or section 45 in such manner as may be prescribed.

(3)   Notwithstanding  anything  contained  in  sub-section  ( 2),  the
responsibility  for  correctness  of  any  particulars  furnished  in  the  return  or
other details filed by the goods and services tax practitioners shall continue
to  rest  with  the  registered  person  on  whose  behalf  such  return  and  details
are  furnished.

CHAPTER-X
PAYMENT OF TAX

49.

(1)  Every  deposit  made  towards  tax,  interest,  penalty,  fee  or  any
other  amount  by  a  person  by  internet  banking  or  by  using  credit  or  debit
cards  or  National  Electronic  Fund  Transfer  or  Real  Time  Gross  Settlement
or by such other mode and subject to such conditions and restrictions as may
be  prescribed,  shall  be  credited  to  the  electronic  cash  ledger  of  such  person
to be maintained in such manner as may be prescribed.

Payment  of
tax,
interest,
pe na lt y
and  other
a mounts.

(2) The  input  tax  credit  as  self-assessed  in  the  return  of  a  registered
person  shall  be  credited  to  his  electronic  credit  ledger,  in  accordance  with
section 41, to be maintained in such manner as may be prescribed.

(3) The  amount available  in  the electronic  cash ledger  may  be used  for
making any payment towards tax, interest, penalty, fees or any other amount
payable  under  the  provisions  of  this  Act  or  the  rules  made  thereunder  in
such manner and subject to such conditions and within such time as may be
prescribed.

(4) The amount available in the electronic credit ledger may be used for
making  any  payment  towards  output  tax  under  this  Act  or  under  the
Integrated  Goods  and  Services  Tax  Act  in  such  manner  and  subject  to  such
conditions and within such time as may be prescribed.

(5) The amount of input tax credit available in the electronic credit ledger

of  the registered  person  on  account of  ––

(a) integrated  tax  shall  first  be  utilised  towards  payment  of
integrated tax and the amount remaining, if any, may be utilised towards
the payment of central tax and State tax, or as the case may be, Union
territory  tax,  in  that  order ;

(b) the central tax shall first be utilised towards payment of central
tax  and  the  amount  remaining,  if  any,  may  be  utilised  towards  the
payment  of  integrated  tax ;

(c) the State tax shall first be utilised towards payment of State tax
and the amount remaining, if any, may be utilised towards the payment
of  integrated  tax ;

(d) the  Union  territory  tax  shall first  be  utilised  towards  payment
of Union territory tax and the amount remaining, if any, may be utilised
towards  the  payment  of  integrated  tax ;

(e)  the  central  tax  shall  not  be  utilised  towards  payment  of  State

tax or Union territory tax ; and

¦ÉÉMÉ +É`ö--94-6

42

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(f) the State tax or Union territory tax shall not be utilised towards

payment of central tax.
(6) The  balance  in  the  electronic  cash  ledger  or  electronic  credit  ledger
after payment of tax, interest, penalty, fee or any other amount payable under
this  Act  or  the  rules  made  thereunder  may  be  refunded  in  accordance  with
the  provisions  of  section  54.

(7) All  liabilities  of  a  taxable  person  under  this  Act  shall  be  recorded
and maintained in an electronic liability register in such manner as may be
prescribed.

(8) Every  taxable  person  shall  discharge  his  tax  and  other  dues  under

this  Act  or  the  rules  made  thereunder  in  the  following  order,  namely :––

(a)  self-assessed  tax,  and  other dues  related  to  returns  of  previous

tax  periods ;

(b)  self-assessed  tax,  and  other  dues  related  to  the  return  of  the

current  tax  period ;

(c)  any  other  amount  payable  under  this  Act  or  the  rules  made
thereunder  including  the  demand  determined  under  section  73  or
section  74.
(9) Every person who has paid the tax on goods or services or both under
this Act shall, unless the contrary is proved by him, be deemed to have passed
on the full incidence of such tax to the recipient of such goods or services or
both.

Explanation.––For  the  purposes  of  this  section,

(a)   the  date  of  credit  to  the  account  of  the  Government  in  the
authorised  bank  shall  be  deemed  to  be  the  date  of  deposit  in  the
electronic  cash  ledger ;

(b) the  expression,—

(i)  “tax  dues”  means  the  tax  payable  under  this  Act  and  does

not  include  interest,  fee  and  penalty ;  and

(ii) “other dues” means interest, penalty, fee or any other amount

payable  under  this  Act  or  the  rules  made  thereunder.

50.

(1)  Every  person  who  is  liable  to  pay  tax  in  accordance  with  the
provisions of this Act or the rules made thereunder, but fails to pay the tax
or  any  part  thereof  to  the  Government  within  the  period  prescribed,  shall
for the period for which the tax or any part thereof remains unpaid, pay, on
his  own,  interest  at  such  rate,  not  exceeding  eighteen  per  cent.,  as  may  be
notified  by  the  Government  on  the  recommendations  of  the  Council.

(2) The interest under sub-section (1) shall be calculated, in such manner
as may be prescribed, from the day succeeding the day on which such tax was
due to be paid.

(3) A  taxable  person  who  makes  an  undue  or  excess  claim  of  input  tax
credit  under  sub-section  (10)  of  section  42  or  undue  or  excess  reduction  in
output tax liability under sub-section (10) of section 43, shall pay interest on
such undue or excess claim or on such undue or excess reduction, as the case
may be, at such rate not exceeding twenty-four per cent., as may be notified
by  the  Government  on  the  recommendations  of  the  Council.

Interest  on
d e l a y e d
payment  of
tax.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

51.

(1) Notwithstanding anything to the contrary contained in this Act,

the  Government  may  mandate,—

43

T a x
d e d u c t i o n
at  source.

(a)  a  department  or  establishment  of  the  Central  Government  or

State  Government ;  or

(b)  local  authority ;  or
(c)  Governmental  agencies ;  or
(d)  such  persons  or  category  of  persons  as  may  be  notified  by  the

Government  on  the  recommendations  of  the  Council,

(hereafter in this section referred to as “the deductor”), to deduct tax at the
rate  of  one  per  cent.  from  the  payment  made  or  credited  to  the  supplier
(hereafter  in  this  section  referred  to  as  “the  deductee”)  of  taxable  goods  or
services  or  both,  where  the  total  value  of  such  supply,  under  a  contract,
exceeds  two  lakh  and  fifty  thousand  rupees :

Provided that no deduction shall be made if the location of the supplier
and  the  place  of  supply  is  in  a  State  or  Union  territory  which  is  different
from the  State or,  as the  case may be,  Union territory  of registration  of the
recipient.

Explanation.––For  the  purpose  of  deduction  of  tax  specified  above,  the
value of supply shall be taken as the amount excluding the central tax, State
tax, integrated  tax and cess  indicated in  the invoice.

(2) The amount  deducted as  tax under this  section shall  be paid  to the
Government  by  the  deductor  within  ten  days  after  the  end  of  the  month  in
which such deduction is made, in such manner as may be prescribed.

(3) The  deductor  shall  furnish  to  the  deductee  a  certificate  mentioning
therein the contract value, rate of deduction, amount deducted, amount paid
to  the  Government  and  such  other  particulars  in  such  manner  as  may  be
prescribed.

(4) If any deductor fails to furnish  to the deductee the certificate, after
deducting  the  tax  at  source,  within  five  days  of  crediting  the  amount  so
deducted to  the Government, the  deductor shall pay,  by way  of a late  fee, a
sum of one hundred rupees per day from the day after the expiry of such five
day period until the failure is rectified, subject to a maximum amount of five
thousand  rupees.

(5) The deductee shall claim credit, in his electronic cash ledger, of the
tax  deducted  and  reflected  in  the  return  of  the  deductor  furnished  under
sub-section (3) of section 39, in such manner as may be prescribed.

(6) If any deductor fails to pay to the Government the amount deducted
as  tax  under  sub-section  (1),  he  shall  pay  interest  in  accordance  with  the
provisions  of  sub-section  (1)  of  section  50,  in  addition  to  the  amount  of  tax
deducted.

(7) The determination of the amount in default under this section shall

be made in the manner specified in section 73 or section 74.

(8) The  refund  to  the  deductor  or  the  deductee  arising  on  account  of
excess  or  erroneous  deduction  shall  be  dealt  with  in  accordance  with  the
provisions  of  section  54 :

Provided that no refund to the deductor shall be granted, if the amount

deducted  has  been  credited  to  the  electronic  cash  ledger  of  the  deductee.

¦ÉÉMÉ +É`ö--94-6+

44

C o l l e c t i o n
of  tax  at
s o u r c e .

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

52.

(1) Notwithstanding anything to the contrary contained in this Act,
every  electronic  commerce  operator  (hereafter  in  this  section  referred  to  as
the  “operator”),  not  being  an  agent,  shall  collect  an  amount  calculated  at
such rate not exceeding one per cent., as may be notified by the Government
on  the recommendations  of  the Council,  of  the net  value  of taxable  supplies
made  through  it  by  other  suppliers  where  the  consideration  with  respect  to
such  supplies  is  to  be  collected  by  the  operator.

Explanation.––For the purposes of this  sub-section, the expression “net
value of taxable supplies” shall mean the aggregate value of taxable supplies
of  goods  or  services  or  both,  other  than  services  notified  under  sub-section
(5) of section 9, made during any month by all registered persons through the
operator  reduced by  the aggregate  value of  taxable supplies  returned to  the
suppliers  during  the  said  month.

(2) The power to collect the amount specified in sub-section (1) shall be

without  prejudice  to  any  other  mode  of  recovery  from  the  operator.

(3) The  amount  collected  under  sub-section  (1)  shall  be  paid  to  the
Government  by  the  operator  within  ten  days  after  the  end  of  the  month  in
which such collection is made, in such manner as may be prescribed.

(4) Every  operator  who  collects  the  amount  specified  in  sub-section  (1)
shall  furnish  a  statement,  electronically,  containing  the  details  of  outward
supplies of goods or services or both effected through it, including the supplies
of  goods  or  services  or  both  returned  through  it,  and  the  amount  collected
under  sub-section  (1)  during  a  month,  in  such  form  and  manner  as  may  be
prescribed, within ten days after the end of such month.

(5) Every  operator  who  collects  the  amount  specified  in  sub-section  (1)
shall  furnish  an  annual  statement,  electronically,  containing  the  details  of
outward  supplies  of  goods  or  services  or  both  effected  through  it,  including
the supplies of goods or services or both returned through it, and the amount
collected  under  the  said  sub-section  during  the  financial  year,  in  such  form
and  manner  as  may  be  prescribed,  before  the  thirty  first  day  of  December
following the end of  such financial year.

(6) If  any  operator  after  furnishing  a  statement  under  sub-section  (4)
discovers any omission or incorrect particulars therein, other than as a result
of  scrutiny,  audit,  inspection  or  enforcement  activity  by  the  tax  authorities,
he shall rectify such omission or incorrect particulars in the statement to be
furnished for the month during which such omission or incorrect particulars
are  noticed,  subject  to  payment  of  interest,  as  specified  in  sub-section  (1)  of
section  50 :

Provided  that  no  such  rectification  of  any  omission  or  incorrect
particulars  shall  be  allowed  after  the  due  date  for  furnishing  of  statement
for  the  month  of  September  following  the  end  of  the  financial  year  or  the
actual  date  of  furnishing  of  the  relevant  annual  statement,  whichever  is
earlier.

(7) The supplier who has supplied the goods or services or both through
the  operator  shall  claim  credit,  in  his  electronic  cash  ledger,  of  the  amount
collected and reflected in the statement of the operator furnished under sub-
section (4), in such manner as may be prescribed.

(8) The details of supplies furnished by every operator under sub-section
(4)  shall  be  matched  with  the  corresponding  details  of  outward  supplies
furnished by the concerned supplier registered under this Act in such manner
and within such time as may be prescribed.

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45

(9) Where  the  details  of  outward  supplies  furnished  by  the  operator
under sub-section (4) do not match with the corresponding details furnished
by  the  supplier  under  section  37,  the  discrepancy  shall  be  communicated  to
both persons in such manner and within such time as may be prescribed.

(10) The  amount  in  respect  of  which  any  discrepancy  is  communicated
under  sub-section  (9)  and  which  is  not  rectified  by  the  supplier  in  his  valid
return  or  the  operator  in  his  statement  for  the  month  in  which  discrepancy
is communicated, shall be added to the output tax liability of the said supplier,
where the value of outward supplies furnished by the operator is more than
the value of outward supplies furnished by the supplier, in his return for the
month  succeeding  the  month  in  which  the  discrepancy  is  communicated  in
such manner as may be prescribed.

(11) The  concerned  supplier,  in  whose  output  tax  liability  any  amount
has been added under sub-section (10), shall pay the tax payable in respect of
such supply along with interest, at the rate specified under sub-section (1) of
section  50  on  the  amount  so  added  from  the  date  such  tax  was  due  till  the
date of its payment.

(12) Any  authority  not  below  the  rank  of  Deputy  Commissioner  may
serve  a  notice,  either  before  or  during  the  course  of  any  proceedings  under
this  Act,  requiring  the  operator  to  furnish  such  details  relating  to—

(a)  supplies  of  goods  or  services  or  both  effected  through  such

operator  during  any  period ;  or

(b)  stock  of  goods  held  by  the  suppliers  making  supplies  through
such operator in the godowns or warehouses, by whatever name called,
managed by such operator and declared as additional places of business
by  such  suppliers,

as may be specified in the notice.

(13) Every operator on whom a notice has been served under sub-section
(12)  shall  furnish  the  required  information  within  fifteen  working  days  of
the date  of service  of such  notice.

(14) Any  person  who  fails  to  furnish  the  information  required  by  the
notice  served  under  sub-section  (12)  shall,  without  prejudice  to  any  action
that may be taken under section 122, be liable to a penalty which may extend
to  twenty-five  thousand  rupees.

Explanation.—For  the  purposes  of  this  section,  the  expression
“concerned  supplier”  shall  mean  the  supplier  of  goods  or  services  or  both
making  supplies  through  the  operator.

53. On utilisation of input tax credit availed under this Act for payment
of  tax  dues  under  the  Integrated Goods  and  Services  Tax  Act  in  accordance
with  the  provisions  of  sub-section  (5)  of  section  49,  as  reflected  in  the  valid
return furnished under sub-section (1) of section 39, the amount collected as
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  tax  account  to  the  integrated  tax  account  in  such
manner and within such time as may be prescribed.

Transfer  of
input  tax
c r ed i t .

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CHAPTER  XI
REFUNDS

Refund  of
tax.

54.

(1) Any person claiming refund of any tax and interest, if any, paid
on such tax or any other amount paid by him, may make an application before
the  expiry  of  two  years  from  the relevant  date  in  such  form  and  manner  as
may  be  prescribed :

Provided that a registered person, claiming refund of any balance in the
electronic cash ledger in accordance with the provisions of sub-section (6) of
section 49, may claim such refund in the return furnished under section 39 in
such manner as may be prescribed.

(2) A  specialized  agency  of  the  United  Nations  Organization  or  any
Multilateral Financial Institution and Organization notified under the United
Nations  (Privileges  and  Immunities)  Act,  1947,  Consulate  or  Embassy  of
foreign  countries  or  any  other  person  or  class  of  persons,  as  notified  under
section 55, entitled to a refund of tax paid by it on inward supplies of goods
or  services  or  both,  may  make  an  application  for  such  refund,  in  such  form
and manner as may  be prescribed, before the expiry of  six months from the
last day of the quarter in which such supply was received.

(3) Subject to the provisions of sub-section (10), a registered person may
claim refund of any unutilised input tax credit at the end of any tax period :
Provided  that  no  refund  of  unutilised  input  tax  credit  shall  be  allowed

in cases other than—

46  of
1947.

(i)  zero-rated  supplies  made  without  payment  of  tax ;
(ii)  where  the  credit  has  accumulated  on  account  of  rate  of  tax  on
inputs being higher than the rate of tax on output supplies (other than
nil  rated  or  fully  exempt  supplies),  except  supplies  of  goods  or  services
or both as may be notified by the Government on the recommendations
of  the  Council :

Provided further that no refund of unutilised input tax credit shall
be allowed in cases where the goods exported out of India are subjected
to  export  duty :

Provided also that no refund of input tax credit shall be allowed, if
the supplier of goods or services or both claims refund of the integrated
tax paid on such supplies.
(4) The  application  shall  be  accompanied  by—

(a)  such  documentary  evidence  as  may  be  prescribed  to  establish

that a refund is due to the applicant ; and

(b)  such  documentary  or  other  evidence  (including  the  documents
referred to in section 33) as the applicant may furnish to establish that
the  amount  of  tax  and  interest,  if  any,  paid  on  such  tax  or  any  other
amount  paid  in  relation  to  which  such  refund  is  claimed  was  collected
from, or paid by, him and the incidence of such tax and interest had not
been passed  on to  any other  person :

Provided that where the amount claimed as refund is less than two
lakh  rupees,  it  shall  not  be  necessary  for  the  applicant  to  furnish  any
documentary  and  other  evidences  but  he  may  file  a  declaration,  based
on  the  documentary  or  other  evidences  available  with  him,  certifying
that the incidence of such tax and interest had not been passed on to any
other  person.

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(5) If,  on  receipt  of  any  such  application,  the  proper  officer  is  satisfied
that the whole or part of the amount claimed as refund is refundable, he may
make  an  order  accordingly  and  the  amount  so  determined  shall  be  credited
to the Fund referred to in section 57.

(6) Notwithstanding  anything  contained  in  sub-section  (5),  the  proper
officer may, in the case of any claim for refund on account of zero-rated supply
of  goods  or  services  or  both  made  by  registered  persons,  other  than  such
category of registered persons as may be notified by the Government on the
recommendations  of  the  Council,  refund  on  a  provisional  basis,  ninety  per
cent. of the total amount so claimed, excluding the amount of input tax credit
provisionally  accepted,  in  such  manner  and  subject  to  such  conditions,
limitations and safeguards as may be prescribed and thereafter make an order
under  sub-section  (5)  for  final  settlement  of  the  refund  claim  after  due
verification  of  documents  furnished  by  the  applicant.

(7) The proper officer shall issue the order under sub-section (5) within

sixty  days  from  the  date  of  receipt  of  application  complete  in  all  respects.

(8) Notwithstanding  anything  contained  in  sub-section  ( 5),  the
refundable  amount  shall,  instead  of  being  credited  to  the  Fund,  be  paid  to
the applicant, if such amount is relatable to –

(a) refund of tax paid on zero-rated supplies of goods or services or
both  or  on  inputs  or  input  services  used  in  making  such  zero-rated
supplies ;

(b) refund  of unutilised input  tax credit under  sub-section (3) ;
(c) refund of tax paid on a supply which is not provided, either wholly
or partially, and for which invoice has not been issued, or where a refund
voucher  has  been  issued ;

(d) refund of tax in pursuance of section 77 ;
(e)  the  tax  and  interest,  if  any,  or  any  other  amount  paid  by  the
applicant, if he had not passed on the incidence of such tax and interest
to  any  other  person ;  or

(f) the tax or interest borne by such other class of applicants as the
Government may, on the recommendations of the Council, by notification,
specify.
(9) Notwithstanding anything to the contrary contained in any judgment,
decree,  order  or  direction  of  the  Appellate  Tribunal  or  any  court  or  in  any
other provisions of this Act or the rules made thereunder or in any other law
for  the  time  being  in  force,  no  refund  shall  be  made  except  in  accordance
with  the  provisions  of  sub-section  (8).

(10)   Where  any  refund  is  due  under  sub-section  (3)  to  a  registered
person who has defaulted in furnishing any return or who is required to pay
any tax, interest or penalty, which has not been stayed by any court, Tribunal
or  Appellate  Authority  by  the  specified  date,  the  proper  officer  may—

(a)  withhold  payment  of  refund  due  until  the  said  person  has
furnished the return or paid the tax, interest or penalty, as the case may
be ;

(b) deduct from the refund due, any tax, interest, penalty, fee or any
other amount which the taxable person is liable to pay but which remains
unpaid under this Act or under the existing law.

Explanation.––For  the  purposes  of  this  sub-section,  the  expression
“specified date” shall mean the last date for filing an appeal under this
Act.

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(11) Where  an  order  giving  rise  to  a  refund  is  the  subject  matter  of  an
appeal  or  further  proceedings  or  where  any  other  proceedings  under  this
Act  is  pending  and  the  Commissioner  is  of  the  opinion  that  grant  of  such
refund  is  likely  to  adversely  affect  the  revenue  in  the  said  appeal  or  other
proceedings  on  account  of  malfeasance  or  fraud  committed,  he  may,  after
giving the taxable person an opportunity of being heard, withhold the refund
till such time as he may determine.

(12) Where  a  refund  is  withheld  under  sub-section  (11),  the  taxable
person  shall,  notwithstanding  anything  contained  in  section  56,  be  entitled
to interest at such rate not exceeding six per cent. as may be notified on the
recommendations  of  the  Council,  if  as  a  result  of  the  appeal  or  further
proceedings  he  becomes  entitled  to  refund.

(13) Notwithstanding anything to the contrary contained in this section,
the  amount  of  advance  tax  deposited  by  a  casual  taxable  person  or  a  non-
resident  taxable  person  under  sub-section  (2)  of  section  27,  shall  not  be
refunded  unless  such  person  has,  in  respect  of  the  entire  period  for  which
the certificate of registration granted to him had remained in force, furnished
all  the  returns  required  under  section  39.

(14) Notwithstanding  anything  contained  in  this  section,  no  refund
under  sub-section  (5)  or  sub-section  (6)  shall  be  paid  to  an  applicant,  if  the
amount is less than one thousand rupees.

Explanation.—For  the  purposes  of  this  section,––

(1)  “refund”  includes  refund  of  tax  paid  on  zero-rated  supplies  of
goods or services or both or on inputs or input services used in making
such zero-rated supplies, or refund of tax on the supply of goods regarded
as  deemed  exports,  or  refund  of unutilised  input  tax  credit  as  provided
under  sub-section  (3).

(2) “relevant date” means –

(a) in the case of goods exported out of India where a refund of
tax paid  is available  in respect of  goods themselves  or, as  the case
may be, the inputs or input services used in such goods,––

(i) if the goods are exported by sea or air, the date on which
the ship or the aircraft in which such goods are loaded, leaves
India ;  or

(ii)  if  the  goods  are  exported  by  land,  the  date  on  which

such  goods  pass  the  frontier ;  or

(iii) if the goods are exported by post, the date of despatch
of goods by the Post Office concerned to a place outside India ;
(b)  in  the  case  of  supply  of  goods  regarded  as  deemed  exports
where a refund of tax paid is available in respect of the goods, the
date  on  which  the  return  relating  to  such  deemed  exports  is
furnished ;

(c) in the case of services exported out of India where a refund
of  tax paid  is  available in  respect  of services  themselves  or, as  the
case may be, the inputs or input services used in such services, the
date  of––

(i)  receipt  of  payment  in  convertible  foreign  exchange,
where  the  supply  of  services  had  been  completed  prior  to  the
receipt  of  such  payment ;  or

(ii)  issue  of  invoice,  where  payment  for  the  services  had
been received in advance prior to the date of issue of the invoice ;

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49

(d) in case where the tax becomes refundable as a consequence
of  judgment,  decree,  order  or  direction  of  the  Appellate  Authority,
Appellate Tribunal or any court, the date of communication of such
judgment,  decree,  order  or  direction ;

(e)  in  the  case  of  refund  of  unutilised  input  tax  credit  under
sub-section (3), the end of the financial year in which such claim for
refund  arises ;

(f) in the case where tax is paid provisionally under this Act or
the rules made thereunder, the date of adjustment of tax after the
final  assessment  thereof ;

(g) in the case of a person, other than the supplier, the date of

receipt  of goods  or  services or  both  by  such person ;  and
(h) in any other case, the date of payment of tax.

46  of
1947.

55. The  Government  may,  on  the  recommendations  of  the  Council,  by
notification, specify any specialized agency of the United Nations Organization
or  any  Multilateral  Financial  Institution  and  Organization  notified  under
the  United  Nations  (Privileges  and  Immunities)  Act,  1947,  Consulate  or
Embassy of foreign countries and any other person or class of persons as may
be  specified  in  this  behalf,  who  shall,  subject  to  such  conditions  and
restrictions as may be prescribed, be entitled to claim a refund of taxes paid
on  the  notified  supplies  of  goods  or  services  or  both  received  by  them.

Refund  in
c er t a i n
ca ses.

Interest  on
d e l a y e d
re fund s.

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  from  the  date  immediately  after  the  expiry  of  sixty
days  from  the  date  of  receipt  of  application  under  the  said  sub-section  till
the date of refund of such tax :

Provided that where any claim of refund arises from an order passed by
an  adjudicating  authority  or  Appellate  Authority  or  Appellate  Tribunal  or
court which  has attained finality  and the same  is not refunded  within sixty
days  from  the  date  of  receipt  of  application  filed  consequent  to  such  order,
interest  at  such  rate not  exceeding  nine  per  cent.  as  may be  notified  by  the
Government  on  the  recommendations  of  the  Council  shall  be  payable  in
respect  of  such  refund  from  the  date  immediately  after  the  expiry  of  sixty
days from the date of receipt of application till the date of refund.

Explanation.––For  the  purposes  of  this  section,  where  any  order  of
refund  is  made  by  an  Appellate  Authority,  Appellate  Tribunal  or  any  court
against an order of the proper officer under sub-section (5) of section 54, the
order  passed  by  the  Appellate  Authority,  Appellate  Tribunal  or  the  court
shall be deemed to be an order passed under the said sub-section (5).

57. The Government shall constitute a Fund, to be called the Consumer

Welfare Fund and there shall be credited to the Fund,––

C o n s u m e r
W e l f a r e
F un d .

(a) the amount referred  to  in  sub-section (5) of section 54 ;
(b) any income from investment of the amount credited to the Fund ;

and

(c) such  other  monies  received  by  it,

in such manner as may be prescribed.
¦ÉÉMÉ +É`ö--94-7

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Utilisation
of  Fund.

58.

(1) All sums credited to the Fund shall be utilised by the Government

for the welfare of the consumers in such manner as may be prescribed.

(2) The  Government  or  the  authority  specified  by  it  shall  maintain
proper  and  separate  account  and  other  relevant  records  in  relation  to  the
Fund and prepare an  annual statement of accounts in such  form as may be
prescribed in consultation with the Comptroller and Auditor General of India.

CHAPTER–  XII
ASSESSMENT

S elf-
a ssess-
m en t .

59. Every  registered  person  shall  self-assess  the  taxes  payable  under
this  Act  and  furnish  a  return  for  each  tax  period  as  specified  under
section  39.

P rovis iona l
a ssess-
m en t .

60.

(1)  Subject  to  the  provisions  of  sub-section  (2),  where  the  taxable
person  is  unable  to  determine  the  value  of  goods  or  services  or  both  or
determine the rate of tax applicable thereto, he may request the proper officer
in  writing  giving  reasons  for  payment  of  tax  on  a  provisional  basis  and  the
proper officer shall pass an order, within a period not later than ninety days
from the date of receipt of such request, allowing payment of tax on provisional
basis at such rate or on such value as may be specified by him.

(2) The payment of tax on provisional basis may be allowed, if the taxable
person  executes  a  bond  in  such  form  as  may  be  prescribed,  and  with  such
surety  or  security  as  the  proper  officer  may  deem  fit,  binding  the  taxable
person  for  payment  of  the  difference  between  the  amount  of  tax  as  may  be
finally assessed  and the  amount of  tax provisionally  assessed.

(3) The  proper  officer  shall,  within  a  period  not  exceeding  six  months
from  the  date  of  the  communication  of  the  order  issued  under  sub-section
(1), pass the final assessment order after taking into account such information
as may be required for finalizing the assessment :

Provided that the period specified in this sub-section may, on sufficient
cause being shown and for reasons to be recorded in writing, be extended by
the  Joint  Commissioner  or  Additional  Commissioner  for  a  further  period
not  exceeding  six  months  and  by  the  Commissioner  for  such  further  period
not  exceeding  four  years.

(4) The  registered  person  shall  be  liable  to  pay  interest  on  any  tax
payable  on  the  supply  of  goods  or  services  or  both  under  provisional
assessment  but  not  paid  on  the  due  date  specified  under  sub-section  (7)  of
section  39  or  the  rules  made  thereunder,  at  the  rate  specified  under  sub-
section (1) of section 50, from the first day after the due date of payment of
tax  in  respect  of  the  said  supply  of  goods  or  services  or  both  till  the  date  of
actual payment, whether such amount is paid before or after the issuance of
order  for  final  assessment.

(5) Where  the  registered  person  is  entitled  to  a  refund  consequent  to
the order of final assessment under sub-section (3), subject to the provisions
of  sub-section  (8)  of  section  54,  interest  shall  be  paid  on  such  refund  as
provided  in  section  56.

Scrutiny  of
retu rns.

61.

(1)  The  proper  officer  may  scrutinize  the  return  and  related
particulars  furnished  by  the  registered  person  to  verify  the  correctness  of
the return and inform him of the discrepancies noticed, if any, in such manner
as may  be prescribed  and seek  his explanation  thereto.

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51

(2)  In  case  the  explanation  is  found  acceptable,  the  registered  person
shall  be  informed  accordingly  and  no  further  action  shall  be  taken  in  this
regard.

(3)  In  case  no  satisfactory  explanation  is  furnished  within  a  period  of
thirty days of being informed by the proper officer or such further period as
may be permitted by him or where the registered person, after accepting the
discrepancies, fails to take the corrective measure in his return for the month
in  which  the  discrepancy  is  accepted,  the  proper  officer  may  initiate
appropriate  action  including  those  under  section  65  or  section  66  or  section
67, or proceed to determine the tax and other dues under section 73 or section
74.

62.

(1)  Notwithstanding  anything  to  the  contrary  contained  in  section
73 or section 74, where a registered person fails to furnish the return under
section  39  or  section  45,  even  after  the  service  of  a  notice  under  section  46,
the proper officer may proceed to assess the tax liability of the said person to
the best of his judgement taking into account all the relevant material which
is available or which he has gathered and issue an assessment order within a
period of five years from the date specified under section 44 for furnishing of
the annual return for the financial year to which the tax not paid relates.

(2) Where  the  registered  person  furnishes  a  valid  return  within  thirty
days  of  the  service  of  the  assessment  order  under  sub-section  (1),  the  said
assessment  order  shall  be  deemed  to  have  been  withdrawn  but  the  liability
for payment of interest under sub-section (1) of section 50 or for payment of
late  fee under  section  47 shall  continue.

63. Notwithstanding  anything  to  the  contrary  contained  in  section  73
or section 74,where a taxable person fails to obtain registration even though
liable to do so or whose registration has been cancelled under sub-section (2)
of section 29 but who was liable to pay tax, the proper officer may proceed to
assess the tax liability of such taxable person to the best of his judgment for
the  relevant  tax  periods  and  issue  an  assessment  order  within  a  period  of
five years from the date specified under section 44 for furnishing of the annual
return for the financial year to which the tax not paid relates :

Provided that  no such assessment order  shall be passed  without giving

the  person  an  opportunity  of  being  heard.

64.

(1) The proper officer may, on any evidence showing a tax liability
of a person coming to his notice, with the previous permission of Additional
Commissioner  or  Joint  Commissioner,  proceed  to  assess  the  tax  liability  of
such person to protect the interest of revenue and issue an assessment order,
if he has sufficient grounds to believe that any delay in doing so may adversely
affect  the  interest  of  revenue :

Provided  that  where  the  taxable  person  to  whom  the  liability  pertains
is not ascertainable and such liability pertains to supply of goods, the person
in charge of such goods shall be deemed to be the taxable person liable to be
assessed and liable to pay tax and any other amount due under this section.
(2) On  an  application  made  by  the  taxable  person  within  thirty  days
from the date  of receipt of order passed  under sub-section (1) or  on his  own
motion,  if  the  Additional  Commissioner  or  Joint  Commissioner  considers
that  such  order  is  erroneous,  he  may  withdraw  such  order  and  follow  the
procedure  laid  down  in  section  73  or  section  74.

¦ÉÉMÉ +É`ö--94-7+

A ss e ss -
ment  of
non-filers
of  returns.

A ss e ss -
ment  of
un re gi -
s t e r e d
p e r so n s .

S u m m a r y
a ss essm ent
in  certain
s pe c ia l
ca ses.

52

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CHAPTER  XIII
AUDIT

Audit  by
t a x
authorities.

65.

(1) The Commissioner or any officer authorised by him, by way of a
general or a specific order, may undertake audit of any registered person for
such period, at such frequency and in such manner as may be prescribed.

(2) The  officers  referred  to  in  sub-section  (1)  may  conduct  audit  at  the

place  of  business  of  the  registered  person  or  in  their  office.

(3) The  registered  person  shall  be  informed  by  way  of  a  notice  not  less
than  fifteen  working  days  prior  to  the  conduct  of  audit  in  such  manner  as
may  be  prescribed.

(4) The  audit  under  sub-section  (1)  shall  be  completed  within  a  period

of three months from the date of commencement of the audit :

Provided that where the Commissioner is satisfied that audit in respect
of such registered person cannot be completed within three months, he may,
for  the  reasons  to  be  recorded  in  writing,  extend  the  period  by  a  further
period  not  exceeding  six  months.

Explanation.––For  the  purposes  of  this  sub-section,  the  expression
“commencement of audit” shall mean the date on which the records and other
documents,  called  for  by  the  tax  authorities,  are  made  available  by  the
registered  person  or  the  actual  institution  of  audit  at  the  place  of  business,
whichever  is  later.

(5) During  the  course  of  audit,  the  authorised  officer  may  require  the

registered  person,––

(i) to afford him the necessary facility to verify the books of account

or other documents as  he may require ;

(ii)  to  furnish  such  information  as  he  may  require  and  render

assistance  for  timely  completion  of  the  audit.
(6) On  conclusion  of  audit,  the  proper  officer  shall,  within  thirty  days,
inform the registered person, whose records are audited, about the findings,
his rights and obligations and the reasons for such findings.

(7) Where the audit conducted under sub-section (1) results in detection
of  tax  not  paid  or  short  paid  or  erroneously  refunded,  or  input  tax  credit
wrongly  availed  or  utilised,  the  proper  officer  may  initiate  action  under
section 73 or section 74.

66.

(1)  If  at  any  stage  of  scrutiny,  inquiry,  investigation  or  any  other
proceedings  before  him,  any  officer  not  below  the  rank  of  Assistant
Commissioner,  having  regard  to  the  nature  and  complexity  of  the  case  and
the interest of revenue, is of the opinion that the value has not been correctly
declared  or  the  credit availed  is  not  within  the  normal limits,  he  may,  with
the  prior  approval  of  the  Commissioner,  direct  such  registered  person  by  a
communication  in  writing  to  get  his  records  including  books  of  account
examined and audited by a chartered accountant or a cost accountant as may
be  nominated  by  the  Commissioner.

(2) The  chartered  accountant  or  cost  accountant  so  nominated  shall,
within  the  period  of  ninety  days,  submit  a  report  of  such  audit  duly  signed
and certified by him to the said Assistant Commissioner mentioning therein
such  other  particulars as  may  be  specified :

Provided that the Assistant Commissioner may, on an application made
to him in this behalf by the registered person or the chartered accountant or
cost  accountant  or  for  any  material  and  sufficient  reason,  extend  the  said
period by  a further  period of  ninety days.

S p ec ia l
audit.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

53

(3) The  provisions  of  sub-section  (1)  shall  have  effect  notwithstanding
that the accounts of the registered person have been audited under any other
provisions of this Act or any other law for the time being in force.

(4) The  registered  person  shall  be  given  an  opportunity  of  being  heard
in  respect of  any material  gathered on  the basis  of special  audit under  sub-
section (1) which is proposed to be used in any proceedings against him under
this  Act  or  the  rules  made  thereunder.

(5) The  expenses  of  the  examination  and  audit  of  records  under  sub-
section (1), including the remuneration of such chartered accountant or cost
accountant,  shall  be  determined  and  paid  by  the  Commissioner  and  such
determination  shall  be  final.

(6) Where  the  special  audit  conducted  under  sub-section  (1)  results  in
detection of tax not paid or short paid or erroneously refunded, or input tax
credit wrongly availed or utilised, the proper officer may initiate action under
section 73 or section 74.

CHAPTER  XIV
INSPECTION, SEARCH, SEIZURE AND ARREST

67.

(1)  Where  the  proper  officer,  not  below  the  rank  of  Joint

Commissioner,  has  reasons  to  believe  that––

Power  of
inspec tion,
search  and
seiz ure.

(a)  a  taxable  person  has  suppressed  any  transaction  relating  to
supply of goods or services or both or the stock of goods in hand, or has
claimed  input  tax  credit  in  excess  of  his  entitlement  under  this  Act  or
has indulged in contravention of any of the provisions of this Act or the
rules  made thereunder  to  evade tax  under  this Act ;  or

(b) any person engaged in the business of transporting goods or an
owner  or  operator  of  a  warehouse  or  a  godown  or  any  other  place  is
keeping  goods  which  have  escaped  payment  of  tax  or  has  kept  his
accounts  or  goods in  such  a  manner as  is  likely  to  cause evasion  of  tax
payable  under this  Act,

he may authorise in writing any other officer of State tax to inspect any places
of  business  of  the  taxable  person  or  the  persons  engaged  in  the  business  of
transporting  goods  or  the  owner  or  the  operator  of  warehouse  or  godown  or
any  other  place.

(2) Where the proper officer, not below the rank of Joint Commissioner,
either  pursuant  to  an  inspection  carried  out  under  sub-section  ( 1)  or
otherwise, has reasons to believe that any goods liable to confiscation or any
documents  or  books  or  things,  which  in  his  opinion  shall  be  useful  for  or
relevant to any proceedings under this Act, are secreted in any place, he may
authorise in writing any other officer of State tax to search and seize or may
himself search  and seize such goods,  documents or books  or things :

Provided  that  where  it  is  not  practicable  to  seize  any  such  goods,  the
proper  officer,  or  any  officer  authorised  by  him,  may  serve  on  the  owner  or
the  custodian  of  the  goods  an  order  that  he  shall  not  remove,  part  with,  or
otherwise  deal  with  the  goods  except  with  the  previous  permission  of  such
officer :

Provided  further  that  the  documents  or  books  or  things  so  seized  shall
be  retained  by  such  officer  only  for  so  long  as  may  be  necessary  for  their
examination  and for  any  inquiry or  proceedings  under this  Act.

(3) The documents, books or things referred to in sub-section (2) or any
other documents, books or things produced by a taxable person or any other

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person,  which  have  not  been  relied  upon  for  the  issue  of  notice  under  this
Act or the rules made thereunder, shall be returned to such person within a
period  not  exceeding thirty  days  of  the  issue  of the  said  notice.

(4) The officer authorised under sub-section (2) shall have the power to
seal  or  break  open  the  door  of  any  premises  or  to  break  open  any almirah,
electronic devices, box, receptacle in which any goods, accounts, registers or
documents of the person are suspected to be concealed, where access to such
premises, almirah,  electronic  devices,  box  or  receptacle  is  denied.

(5) The  person  from  whose  custody  any  documents  are  seized  under
sub-section  (2)  shall  be  entitled  to  make  copies  thereof  or  take  extracts
therefrom in the presence of an authorised officer at such place and time as
such officer may indicate in this behalf except where making such copies or
taking  such  extracts  may,  in  the  opinion  of  the  proper  officer,  prejudicially
affect  the  investigation.

(6) The  goods  so  seized  under  sub-section  (2)  shall  be  released,  on  a
provisional  basis,  upon  execution  of  a  bond  and  furnishing  of  a  security,  in
such manner and of such quantum, respectively, as may be prescribed or on
payment of applicable tax, interest and penalty payable, as the case may be.
(7) Where  any  goods  are  seized  under  sub-section  (2)  and  no  notice  in
respect  thereof  is  given  within  six  months  of  the  seizure  of  the  goods,  the
goods shall be returned to the person from whose possession they were seized :
Provided  that  the  period  of  six  months  may,  on  sufficient  cause  being
shown,  be  extended  by  the  proper  officer  for  a  further  period  not  exceeding
six months.

(8) The Government may, having regard to the perishable or hazardous
nature of any goods, depreciation in the value of the goods with the passage
of  time,  constraints  of  storage  space  for  the  goods  or  any  other  relevant
considerations, by notification, specify the goods or class of goods which shall,
as soon as may be after its seizure under sub-section (2), be disposed of by the
proper officer in  such manner as may  be prescribed.

(9) Where  any  goods,  being  goods  specified  under  sub-section  (8),  have
been  seized  by  a proper  officer,  or  any  officer  authorised by  him  under  sub-
section  (2),  he  shall  prepare  an  inventory  of  such  goods  in  such  manner  as
may  be  prescribed.

(10) The provisions of the Code of Criminal Procedure, 1973, relating to
search and seizure, shall, so far as may be, apply to search and seizure under
this  section subject  to the  modification  that sub-section  (5)  of section  165  of
the  said  Code  shall  have  effect  as  if  for  the  word  “Magistrate”,  wherever  it
occurs,  the  word  “Commissioner”  were  substituted.

2  of
1974.

(11) Where  the  proper  officer  has  reasons  to  believe  that  any  person
has  evaded  or  is  attempting  to  evade  the  payment  of  any  tax,  he  may,  for
reasons to be recorded in writing, seize the accounts, registers or documents
of  such  person  produced  before  him  and  shall  grant  a  receipt  for  the  same,
and shall retain the same for so long as may be necessary in connection with
any proceedings under this Act or the rules made thereunder for prosecution.
(12)   The  Commissioner  or  an  officer  authorised  by  him  may  cause
purchase  of  any  goods  or  services  or  both  by  any  person  authorised  by  him
from  the  business  premises  of  any  taxable  person,  to  check  the  issue  of  tax
invoices or bills of supply by such taxable person, and on return of goods so
purchased by such officer, such taxable person or any person in charge of the
business  premises  shall  refund  the  amount  so  paid  towards  the  goods  after
cancelling  any  tax  invoice  or  bill  of  supply  issued  earlier.

55

I ns p ec t io n
of  goods  in
m o v em e n t .

Power  to
a rrest.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

68.

(1)  The  Government  may  require  the  person  in  charge  of  a
conveyance carrying any consignment of goods of value exceeding such amount
as  may  be  specified  to  carry  with  him  such  documents  and  such  devices  as
may  be  prescribed.

(2) The details of documents required to be carried under sub-section (1)

shall be validated in such manner as may be prescribed.

(3)   Where  any  conveyance  referred  to  in  sub-section  (1)  is  intercepted
by the proper officer at any place, he may require the person in charge of the
said  conveyance  to  produce  the  documents  prescribed  under  the  said  sub-
section  and  devices  for  verification,  and  the  said  person  shall  be  liable  to
produce  the  documents  and  devices  and  also  allow  the  inspection  of  goods.

69.

(1)  Where  the  Commissioner  has  reasons  to  believe  that  person
has committed any offence specified in clause (a) or clause (b) or clause (c) or
clause (d) of sub-section (1) of section 132 which is punishable under clause
(i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, by
order, authorise any officer of State  tax to arrest such person.

(2) Where  a  person  is  arrested  under  sub-section  (1)  for  an  offence
specified under sub-section (5) of section 132, the officer authorised to arrest
the  person  shall  inform  such  person  of  the  grounds  of  arrest  and  produce
him before a Magistrate within twenty four hours.

(3) Subject to the provisions of the Code of Criminal Procedure, 1973,—
(a) where a person is arrested under sub-section (1) for any offence
specified  under  sub-section  (4)  of  section  132,  he  shall  be  admitted  to
bail or in default of bail, forwarded to the custody of the Magistrate ;

(b) in the case of a non-cognizable and bailable offence, the Deputy
Commissioner  or  the  Assistant  Commissioner  shall,  for  the  purpose  of
releasing an arrested person on bail or otherwise, have the same powers
and be subject to the same provisions as an officer-in-charge of a police
station.

2  of
1974.

Power  to
s u m m o n
persons  to
g i v e
e v i d e n c e
a n d
p r o d u c e
d oc u m e n ts .

Access  to
b usiness
p re m i se s .

70.

(1)  The proper  officer  under this  Act shall  have  power to  summon
any person whose attendance he considers necessary either to give evidence
or to produce a document or any other thing in any inquiry in the same manner,
as  provided  in  the  case  of  a  civil  court  under  the  provisions  of  the  Code  of
Civil  Procedure,  1908.

5  of
1908.

45  of
1860.

(2) Every such inquiry referred to in sub-section (1) shall be deemed to
be a “judicial proceedings” within the meaning of section 193 and section 228
of the Indian Penal Code.

71.

(1) Any officer under this Act, authorised by the proper officer not
below  the  rank  of  Joint  Commissioner,  shall  have  access  to  any  place  of
business  of  a  registered  person  to  inspect  books  of  account,  documents,
computers,  computer  programs,  computer  software  whether  installed  in  a
computer  or  otherwise  and  such  other  things  as  he  may  require  and  which
may  be  available  at  such  place,  for  the  purposes  of  carrying  out  any  audit,
scrutiny, verification and checks as may be necessary to safeguard the interest
of  revenue.

(2) Every  person  in  charge  of  place  referred  to  in  sub-section  (1)  shall,
on demand, make available to the officer authorised under sub-section (1) or
the audit party deputed by the proper officer or a cost accountant or chartered
accountant  nominated  under  section  66––

(i) such records as prepared or maintained by the registered person
and declared to the proper officer in such manner as may be prescribed ;

56

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(ii) trial balance or its equivalent ;
(iii) statements of annual financial accounts, duly audited, wherever

required ;

(iv)  cost  audit  report,  if  any,  under  section  148  of  the  Companies

Act, 2013 ;

(v)  the  income-tax  audit  report,  if  any,  under  section  44AB  of  the

Income-tax Act, 1961 ; and

(vi)  any  other  relevant  record,

18  of
2013.

43  of
1961.

for  the  scrutiny  by  the  officer  or  audit  party  or  the  chartered  accountant  or
cost accountant within a period not exceeding fifteen working days from the
day when such demand is made, or such further period as may be allowed by
the  said  officer  or  the  audit  party  or  the  chartered  accountant  or  cost
accountant.

Officers  to
assist
p r o p e r
officers.

72.

(1)  All officers  of  Police,  Railways,  Customs,  and  those  officers
engaged  in  the  collection  of  land  revenue,  including  village  officers,  officers
of  central  tax  and  officers  of  the  Union  territory  tax  shall  assist  the  proper
officers  in  the  implementation  of  this  Act.

(2) The Government may, by notification, empower and require any other
class of officers to assist the proper officers in the implementation of this Act
when called upon to do  so by the Commissioner.

D eter m ina -
tion  of  tax
not  paid  or
short  paid
o r
erroneously
r e f u n d e d
or  input
tax  credit
w r o n g l y
availed  or
utilised  for
any  reason
other  than
fraud  or
any  wilful
m issta te-
ment  or
s u p p r e -
ssion  of
facts.

CHAPTER  XV
DEMANDS AND RECOVERY

73.

(1) Where it appears to the proper officer that any tax has not been
paid  or  short  paid  or  erroneously  refunded,  or  where  input  tax  credit  has
been  wrongly  availed  or  utilised  for  any  reason,  other  than  the  reason  of
fraud  or  any  wilful  misstatement  or  suppression  of  facts  to  evade  tax,  he
shall  serve  notice  on  the  person  chargeable  with  tax  which  has  not  been  so
paid or which has been so short paid or to whom the refund has erroneously
been made, or who has wrongly availed or utilised input tax credit, requiring
him to show cause as to why he should not pay the amount specified in the
notice  along  with  interest  payable  thereon  under  section  50  and  a  penalty
leviable  under  the  provisions  of  this  Act  or  the  rules  made  thereunder.

(2) The proper officer shall issue the notice under sub-section (1) at least
three months prior to the time limit specified in sub-section (10) for issuance
of  order.

(3) Where a notice has been issued for any period under sub-section (1),
the  proper  officer  may  serve  a  statement,  containing  the  details  of  tax  not
paid or short paid or erroneously refunded or input tax credit wrongly availed
or  utilised  for  such  periods  other  than  those  covered  under  sub-section  (1),
on the  person chargeable  with tax.

(4) The service of such statement shall be deemed to be service of notice
on such person under sub-section (1), subject to the condition that the grounds
relied  upon for  such  tax periods  other than  those  covered under  sub-section
(1) are the same as are mentioned in the earlier notice.

(5) The  person  chargeable  with  tax  may,  before  service  of  notice  under
sub-section  (1)  or,  as  the  case  may  be,  the  statement  under  sub-section  (3),

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

57

pay the amount of tax along with interest payable thereon under section 50
on the basis of his own ascertainment of such tax or the tax as ascertained by
the  proper  officer  and  inform  the  proper  officer  in  writing  of  such  payment.
(6) The  proper  officer,  on  receipt  of  such  information,  shall  not  serve
any notice under sub-section (1) or, as the case may be, the statement under
sub-section (3), in respect of the tax so paid or any penalty payable under the
provisions  of  this  Act  or  the  rules  made  thereunder.

(7) Where the proper officer is of the opinion that the amount paid under
sub-section (5) falls short of the amount actually payable, he shall proceed to
issue the notice as provided for in sub-section (1) in respect of such amount
which falls short of the amount actually payable.

(8) Where any person chargeable with tax under sub-section (1) or sub-
section  (3)  pays  the  said  tax  along  with  interest  payable  under  section  50
within thirty days of issue of show cause notice, no penalty shall be payable
and  all  proceedings  in  respect  of  the  said  notice  shall  be  deemed  to  be
concluded.

(9) The proper officer shall, after considering the representation, if any,
made  by  person  chargeable  with  tax,  determine  the  amount  of  tax,  interest
and  a  penalty  equivalent  to  ten  per  cent.  of  tax  or  ten  thousand  rupees,
whichever is higher, due from such  person and issue an order.

(10) The proper officer shall issue the order under sub-section (9) within
three years from the due date for furnishing of annual return for the financial
year to which the tax not paid or short paid or input tax credit wrongly availed
or utilised relates to or within three years from the date of erroneous refund.
(11) Notwithstanding  anything  contained  in  sub-section  (6)  or  sub-
section (8), penalty under sub-section (9) shall be payable where any amount
of self-assessed tax or any amount collected as tax has not been paid within a
period of thirty days from the due date of payment of such tax.

74.

(1) Where it appears to the proper officer that any tax has not been
paid  or  short  paid  or  erroneously  refunded  or  where  input  tax  credit  has
been wrongly availed or utilised by reason of fraud, or any wilful misstatement
or  suppression  of  facts  to  evade  tax,  he  shall  serve  notice  on  the  person
chargeable  with  tax  which  has  not  been  so  paid  or  which  has  been  so  short
paid or to whom the refund has erroneously been made, or who has wrongly
availed or utilised input tax credit, requiring him to show cause as to why he
should not pay the amount specified in the notice along with interest payable
thereon under section 50 and a penalty equivalent to the tax specified in the
notice.

(2) The proper officer shall issue the notice under sub-section (1) at least
six months prior to the time limit specified in sub-section (10) for issuance of
order.

(3) Where a notice has been issued for any period under sub-section (1),
the  proper  officer  may  serve  a  statement,  containing  the  details  of  tax  not
paid or short paid or erroneously refunded or input tax credit wrongly availed
or  utilised  for  such  periods  other  than  those  covered  under  sub-section  (1),
on the  person chargeable  with tax.

(4) The service of statement under sub-section (3) shall be deemed to be
service  of notice  under sub-section  (1)  of  section  73, subject  to  the  condition

¦ÉÉMÉ +É`ö--94-8

D eter m ina -
tion  of  tax
not  paid  or
short  paid
o r
erroneously
r e f u n d e d
or  input
tax  credit
w r o n g l y
availed  or
utilised  by
reason  of
fraud  or
any  wilful
m issta te-
ment  or
suppression
of  facts.

58

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that  the  grounds  relied  upon  in  the  said  statement,  except  the  ground  of
fraud,  or  any  wilful-misstatement  or  suppression  of  facts  to  evade  tax,  for
periods  other  than  those  covered  under  sub-section  (1)  are  the  same  as  are
mentioned  in  the  earlier  notice.

(5) The  person  chargeable  with  tax  may,  before  service  of  notice  under
sub-section  (1),  pay  the  amount  of  tax  along  with  interest  payable  under
section  50  and  a  penalty  equivalent  to  fifteen  per  cent.  of  such  tax  on  the
basis  of  his  own  ascertainment  of  such  tax  or  the  tax  as  ascertained  by  the
proper  officer  and  inform  the  proper  officer  in  writing  of  such  payment.

(6) The  proper  officer,  on  receipt  of  such  information,  shall  not  serve
any notice under sub-section (1), in respect of the tax so paid or any penalty
payable  under  the  provisions  of  this  Act  or  the  rules  made  thereunder.

(7) Where the proper officer is of the opinion that the amount paid under
sub-section (5) falls short of the amount actually payable, he shall proceed to
issue the notice as provided for in sub-section (1) in respect of such amount
which falls short of the amount actually payable.

(8) Where  any  person  chargeable  with  tax  under  sub-section  (1)  pays
the  said  tax  along  with  interest  payable  under  section  50  and  a  penalty
equivalent to twenty five per cent. of such tax within thirty days of issue of
the notice, all proceedings in respect of the said notice shall be deemed to be
concluded.

(9) The proper officer shall, after considering the representation, if any,
made by the person chargeable with tax, determine the amount of tax, interest
and penalty due from such person and issue an order.

(10) The proper officer shall issue the order under sub-section (9) within
a  period  of  five  years  from  the  due  date  for  furnishing  of  annual  return  for
the financial year to which the tax not paid or short paid or input tax credit
wrongly  availed  or  utilised  relates  to  or  within  five  years  from  the  date  of
erroneous  refund.

(11) Where any person served with an order issued under sub-section (9)
pays  the  tax  along  with  interest  payable  thereon  under  section  50  and  a
penalty  equivalent  to  fifty  per  cent.of  such  tax  within  thirty  days  of
communication  of  the  order,  all  proceedings  in  respect  of  the  said  notice
shall  be  deemed  to  be  concluded.

Explanation1.– For the  purposes of section 73 and  this section, —

(i) the expression “all proceedings in respect of the said notice” shall

not  include  proceedings  under  section  132 ;

(ii)where  the  notice  under  the  same  proceedings  is  issued  to  the
main  person  liable  to  pay  tax  and  some  other  persons,  and  such
proceedings against the main person have been concluded under section
73  or  section  74,  the  proceedings  against  all  the  persons  liable  to  pay
penalty under sections 122, 125, 129 and 130 are deemed to be concluded.
Explanation  2.––For  the  purposes  of  this  Act,  the  expression
“suppression”  shall  mean  non-declaration  of  facts  or  information  which
a  taxable person  is  required to  declare in  the  return, statement,  report
or  any  other  document  furnished  under  this  Act  or  the  rules  made
thereunder, or failure to furnish any information on being asked for, in
writing,  by  the  proper  officer.

G e n e r a l
p ro v is i on s
relating  to
determination
of  tax.

75.

(1) Where the service of notice or issuance of order is stayed by an
order of a court or Appellate Tribunal, the period of such stay shall be excluded
in computing the period specified in sub-sections (2) and (10) of section 73 or
sub-sections (2) and (10) of section 74, as the case may be.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

59

(2) Where  any  Appellate  Authority  or  Appellate  Tribunal  or  court
concludes  that  the  notice  issued  under  sub-section  (1)  of  section  74  is  not
sustainable for the reason that the charges of fraud or any wilful misstatement
or  suppression  of  facts  to  evade  tax  has  not  been  established  against  the
person to whom the notice was issued, the proper officer shall determine the
tax payable by such person, deeming as if the notice were issued under sub-
section (1) of section 73.

(3) Where any order is required to be issued in pursuance of the direction
of the Appellate Authority or Appellate Tribunal or a court, such order shall
be  issued  within  two  years  from  the  date  of  communication  of  the  said
direction.

(4) An  opportunity  of  hearing  shall  be  granted  where  a  request  is
received in writing from the person chargeable with tax or penalty, or where
any  adverse  decision  is  contemplated  against  such  person.

(5) The  proper  officer  shall,  if  sufficient  cause  is  shown  by  the  person
chargeable  with  tax,  grant  time  to  the  said  person  and  adjourn  the  hearing
for  reasons  to  be  recorded  in  writing :

Provided that no such adjournment shall be granted for more than three

times  to  a  person  during  the  proceedings.

(6) The  proper officer,  in  his order,  shall  set out  the  relevant facts  and

the basis of his decision.

(7) The amount of tax, interest and penalty demanded in the order shall
not be in excess of the amount specified in the notice and no demand shall be
confirmed  on  the  grounds  other  than  the  grounds  specified  in  the  notice.

(8) Where  the  Appellate  Authority  or  Appellate  Tribunal  or  court
modifies  the  amount  of  tax  determined  by  the  proper  officer,  the  amount  of
interest  and  penalty  shall  stand  modified  accordingly,  taking  into  account
the amount of tax so modified.

(9) The interest onthetax short paid or not paid shall be payable whether

or  not  specified  in  the  order  determining  the  tax  liability.

(10) The  adjudication  proceedings  shall  be  deemed  to  be  concluded,  if
the order is not issued within three years as provided for in sub-section (10)
of section 73 or within five years as provided for in sub-section (10) of section
74.

(11) An issue on which the Appellate Authority or the Appellate Tribunal
or  the  High  Court  has  given  its  decision  which  is  prejudicial  to  the  interest
of revenue in some other proceedings and an appeal to the Appellate Tribunal
or the High Court or the Supreme Court against such decision of the Appellate
Authority or the Appellate Tribunal or the High Court is pending, the period
spent between the date of the decision of the Appellate Authority and that of
the Appellate Tribunal or the date of decision of the Appellate Tribunal and
that of the High Court or the date of the decision of the High Court and that
of the  Supreme Court  shall be  excluded in  computing the  period referred  to
in  sub-section  (10)  of  section  73  or  sub-section  (10)  of  section  74  where
proceedings  are  initiated  by  way  of  issue  of  a  show  cause  notice  under  the
said  sections.

(12) Notwithstanding  anything  contained  in  section  73or  section74,
where any amount of self-assessed tax in accordance with a return furnished
under  section  39  remains  unpaid,  either  wholly  or  partly,  or  any  amount  of
interest  payable  on  such  tax  remains  unpaid,  the  same  shall  be  recovered
under  the  provisions  of  section  79.

(13) Where  any  penalty  is  imposed  under  section  73  or  section  74,  no
penalty  for  the  same  act  or  omission  shall  be  imposed  on  the  same  person
under  any  other provision  of  this  Act.
¦ÉÉMÉ +É`ö--94-8+

60

T a x
c o l l e c t e d
but  not
paid  to
Government.

T a x
w r on gf ul ly
c o l l e c t e d
and  paid  to
C e n t r a l
Government
or  State
Government.

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76.

(1) Notwithstanding anything to the contrary contained in any order
or  direction  of  any  Appellate  Authority  or  Appellate  Tribunal  or  court  or  in
any  other  provisions  of  this  Act  or  the  rules  made  thereunder  or  any  other
law  for  the  time  being  in  force,  every  person  who  has  collected  from  any
other person any amount as representing the tax under this Act, and has not
paid the said amount to the Government, shall forthwith pay the said amount
to  the Government,  irrespective  of  whether the  supplies  in  respect of  which
such amount was collected are taxable or not.

(2) Where any  amount is required to  be paid to the  Government under
sub-section (1), and which has not been so paid, the proper officer may serve
on the person liable to pay such amount a notice requiring him to show cause
as  to  why  the  said  amount  as  specified  in  the  notice,  should  not  be  paid  by
him to the Government and why a penalty equivalent to the amount specified
in the notice should not be imposed on him under the provisions of this Act.
(3) The proper officer shall, after considering the representation, if any,
made  by  the  person  on  whom  the  notice  is  served  under  sub-section  ( 2),
determine the amount due from such person and thereupon such person shall
pay  the  amount  so  determined.

(4) The person referred to in sub-section (1) shall in  addition to paying
the  amount  referred  to  in  sub-section  (1)  or  sub-section  (3)  also  be  liable  to
pay  interest  thereon  at  the  rate  specified  under  section  50  from  the  date
such amount was collected by him to the date such amount is paid by him to
the  Government.

(5) An  opportunity  of  hearing  shall  be  granted  where  a  request  is
received  in  writing  from  the  person  to  whom  the  notice  was  issued  to  show
cause.

(6) The  proper  officer  shall  issue  an  order  within  one  year  from  the

date of issue of the notice.

(7) Where  the  issuance  of  order  is  stayed  by  an  order  of  the  court  or
Appellate  Tribunal,  the  period  of  such  stay  shall  be  excluded  in  computing
the  period  of  one  year.

(8) The  proper officer,  in  his order,  shall  set out  the  relevant facts  and

the basis of his decision.

(9) The  amount  paid  to  the  Government  under  sub-section  (1)  or  sub-
section (3) shall be adjusted against the tax payable, if any, by the person in
relation  to  the  supplies  referred  to  in  sub-section  (1).

(10) Where  any  surplus  is  left  after  the  adjustment  under  sub-section
(9), the amount of such surplus shall either be credited to the Fund or refunded
to the person who has borne the incidence of such amount.

(11) The person, who has borne the incidence of the amount, may apply

for the refund of the same in accordance with the provisions of section 54.

77.

(1) A registered person who has paid the central tax and State tax
on a transaction considered by him to be an intra-State supply, but which is
subsequently held to be an inter-State supply, shall be refunded the amount
of  taxes  so  paid  in  such  manner  and  subject  to  such  conditions  as  may  be
prescribed.

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

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78. Any amount payable by a taxable person in pursuance of an order
passed under  this Act shall  be paid by  such person  within a period  of three
months  from  the  date  of  service  of  such  order  failing  which  recovery
proceedings  shall  be  initiated :

Provided  that  where  the  proper  officer  considers  it  expedient  in  the
interest  of  revenue,  he  may,  for  reasons  to  be  recorded  in  writing,  require
the said taxable person to make such payment within such period less than a
period of three months as may be specified by him.

61

Initiation
of  recovery
proceedings.

79.

(1) Where any amount payable by a person to the Government under
any of the provisions of this Act or the rules made thereunder is not paid, the
proper  officer  shall  proceed  to  recover  the  amount  by  one  or  more  of  the
following  modes,  namely :––

R e c o v e r y
of  tax.

(a)  the  proper  officer  may  deduct  or  may  require  any  other  specified
officer to deduct the amount so payable from any money owing to such person
which may be under the control of  the proper officer or such other specified
officer ;

(b)  the  proper  officer  may  recover  or  may  require  any  other  specified
officer  to  recover  the  amount  so  payable  by  detaining  and  selling  any  goods
belonging to such person which are under the control of the proper officer or
such  other  specified  officer ;

(c)  (i)  the  proper  officer  may,  by  a  notice  in  writing,  require  any  other
person  from  whom  money  is  due  or  may  become  due  to  such  person  or  who
holds  or  may  subsequently  hold  money  for  or  on  account  of  such  person,  to
pay  to  the  Government  either  forthwith  upon  the  money  becoming  due  or
being  held,  or  within  the  time  specified  in  the  notice  not  being  before  the
money  becomes  due  or  is  held,  so  much  of  the  money  as  is  sufficient  to  pay
the amount due from such person or the whole of the money when it is equal
to or less than that amount ;

(ii) every person to whom the notice is issued under sub-clause (i) shall
be bound to comply with such notice, and in particular, where any such notice
is  issued  to  a  post  office,  banking  company  or  an  insurer,  it  shall  not  be
necessary  to  produce  any  pass  book,  deposit  receipt,  policy  or  any  other
document for the purpose of any entry, endorsement or the like being made
before  payment  is  made,  notwithstanding  any  rule,  practice  or  requirement
to  the  contrary ;

(iii)  in  case  the  person  to  whom  a  notice  under  sub-clause  (i)  has  been
issued,  fails  to  make  the  payment  in  pursuance  thereof  to  the  Government,
he shall be deemed to be a defaulter in respect of the amount specified in the
notice  and  all  the  consequences  of  this  Act  or  the  rules  made  thereunder
shall  follow ;

(iv)  the  officer  issuing  a  notice  under  sub-clause  (i)  may,  at  any  time,
amend or revoke such notice or extend the time for making any payment in
pursuance  of  the  notice ;

(v) any person making any payment in compliance with a notice issued
under  sub-clause  (i)  shall  be  deemed  to  have  made  the  payment  under  the
authority  of  the  person  in  default  and  such  payment  being  credited  to  the
Government shall be deemed to constitute a good and sufficient discharge of
the liability of such person to the person in default to the extent of the amount
specified  in  the  receipt ;

62

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(vi)  any  person  discharging  any  liability  to  the  person  in  default  after
service  on  him  of  the  notice  issued  under  sub-clause  (i)  shall  be  personally
liable  to  the  Government  to  the  extent  of  the  liability  discharged  or  to  the
extent  of  the  liability  of  the  person  in  default  for  tax,  interest  and  penalty,
whichever  is  less ;

(vii)  where  a  person  on  whom  a  notice  is  served  under  sub-clause  (i)
proves  to  the  satisfaction  of  the  officer  issuing  the  notice  that  the  money
demanded or any part thereof was not due to the person in default or that he
did not hold any money for or on account of the person in default, at the time
the notice was served on him, nor is the money demanded or any part thereof,
likely  to  become  due to  the  said  person  or  be  held  for or  on  account  of  such
person,  nothing  contained  in  this  section  shall  be  deemed  to  require  the
person  on  whom  the  notice  has  been  served  to  pay  to  the  Government  any
such  money  or  part  thereof ;

(d)  the  proper  officer  may,  in  accordance  with  the  rules  to  be  made  in
this behalf, distrain any movable or immovable property belonging to or under
the control of such person, and detain the same until the amount payable is
paid ; and in case, any part of the said  amount payable or of the cost of the
distress  or  keeping  of  the  property,  remains  unpaid  for  a  period  of  thirty
days next after any such distress, may cause the said property to be sold and
with the proceeds of such sale, may satisfy the amount payable and the costs
including cost of sale remaining unpaid and shall render the surplus amount,
if any, to such person ;

(e) the proper officer may prepare a certificate signed by him specifying
the amount due from such person and send it to the Collector of the district
in which such person owns any property or resides or carries on his business
or to any officer authorised by the Government and the said Collector or the
said officer, on receipt of such certificate, shall proceed to recover from such
person  the  amount  specified  thereunder  as  if  it  were  an  arrear  of  land
revenue ;

(f)  notwithstanding  anything  contained  in  the  Code  of  Criminal
Procedure, 1973, the proper officer may file an application to the appropriate
Magistrate  and  such  Magistrate  shall  proceed  to  recover  from  such  person
the amount specified thereunder as if it were a fine imposed by him.

2  of
1974.

(2) Where  the  terms  of  any  bond  or  other  instrument  executed  under
this Act or any rules or regulations made thereunder provide that any amount
due  under  such  instrument  may  be  recovered  in  the  manner  laid  down  in
sub-section  (1),  the  amount  may,  without  prejudice  to  any  other  mode  of
recovery, be recovered in accordance with the provisions of that sub-section.
(3) Where any amount of tax, interest or penalty is payable by a person
to the Government under any of the provisions of this Act or the rules made
thereunder and which remains unpaid, the proper officer of central tax, during
the course of recovery of said tax arrears, may recover the amount from the
said  person  as  if  it  were  an  arrear  of  central  tax  and  credit  the  amount  so
recovered  to  the  account  of  the  Government.

(4) Where  the  amount  recovered  under  sub-section  (3)  is  less  than  the
amount due to the Central Government and State Government, the amount
to  be  credited  to  the  account  of  the  respective  Governments  shall  be  in
proportion  to  the  amount  due  to  each  such  Government.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, VÉÚxÉ 15, 2017/VªÉä¹`ö 25, ¶ÉEäò 1939

80. On an application filed by a taxable person, the Commissioner may,
for  reasons  to  be  recorded  in  writing,  extend  the  time  for  payment  or  allow
payment of any amount due under this Act, other than the amount due as per
the liability self-assessed in any return, by such person in monthly instalments
not  exceeding  twenty  four,  subject  to  payment  of  interest  under  section  50
and subject to such conditions and limitations as may be prescribed :

Provided  that where  there is  default in  payment of  any one  instalment
on  its  due  date,  the  whole  outstanding  balance  payable  on  such  date  shall
become due and payable forthwith and shall, without any further notice being
served  on  the  person,  be  liable  for  recovery.

81. Where a person, after any amount has become due from him, creates
a charge on or parts with the property belonging to him or in his possession
by way of sale, mortgage, exchange, or any other mode of transfer whatsoever
of  any  of  his  properties  in  favour  of  any  other  person  with  the  intention  of
defrauding the Government revenue, such charge or transfer shall be void as
against any claim in respect of any tax or any other sum payable by the said
person :

Provided that, such charge or transfer shall not be void if it is made for
adequate  consideration,  in  good  faith  and  without  notice  of  the  pendency  of
such  proceedings  under  this  Act  or  without  notice  of  such  tax  or  other  sum
payable  by  the  said  person,  or  with  the  previous  permission  of  the  proper
officer.

63

Payment  of
tax  and
o t h e r
amount  in
instalments.

Transfer  of
property  to
be  void  in
c er t a i n
ca ses.

31  of
2016.

82. Notwithstanding anything to the contrary contained in any law for
the  time  being  in  force,  save  as  otherwise  provided  in  the  Insolvency  and
Bankruptcy Code, 2016, any amount payable by a taxable person or any other
person on account of tax, interest or penalty which he is liable to pay to the
Government shall be a first charge on the property of such taxable person or
such  person.

Tax  to  be
fir st
charge  on
p r o p e r t y .

83.

(1)  Where  during  the  pendency  of  any  proceedings  under  section
62  or  section  63  or  section  64  or  section  67  or  section  73  or  section  74,  the
Commissioner is of the opinion that for the purpose of protecting the interest
of  the  Government  revenue,  it  is  necessary  so  to  do,  he  may,  by  order  in
writing attach provisionally any property, including bank account, belonging
to the taxable person in such manner as may be prescribed.

P rovis iona l
a tta chm ent
to  protect
revenue  in
c er t a i n
ca ses.

(2) Every  such  provisional  attachment  shall  cease  to  have  effect  after
the expiry of a period of one year from the date of the order made under sub-
section  (1).

84. Where any notice of demand in respect of any tax, penalty, interest
or any other amount payable under this Act, (hereafter in this section referred
to  as  “Government  dues”),  is  served  upon  any  taxable  person  or  any  other
person and any appeal or revision application is filed or any other proceedings
is  initiated  in  respect  of  such  Government  dues,  then––

Conti nua -
tion  and
valida tion
of  certain
r e c o v e r y
proceedings.

(a)  where  such  Government  dues  are  enhanced  in  such  appeal,
revision  or  other  proceedings,  the  Commissioner  shall  serve  upon  the
taxable person or any other person another notice of demand in respect
of  the  amount  by  which  such  Government  dues  are  enhanced  and  any
recovery proceedings in relation to such Government dues as are covered
by  the  notice  of  demand  served  upon  him  before  the  disposal  of  such
appeal,  revision  or  other  proceedings  may,  without  the  service  of  any
fresh  notice  of  demand,  be  continued  from  the  stage  at  which  such
proceedings  stood  immediately  before  such  disposal ;

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(b)  where  such  Government  dues  are  reduced  in  such  appeal,

revision  or  in  other  proceedings––

(i) it shall not be necessary for the Commissioner to serve upon

the taxable person a fresh notice of demand ;

(ii)  the  Commissioner  shall  give  intimation  of  such  reduction
to  him  and  to  the  appropriate  authority  with  whom  recovery
proceedings  is  pending ;

(iii)  any  recovery  proceedings  initiated  on  the  basis  of  the
demand  served  upon  him  prior  to  the  disposal  of  such  appeal,
revision  or  other  proceedings  may  be  continued  in  relation  to  the
amount so reduced from the stage at which such proceedings stood
immediately  before  such  disposal.

CHAPTER  XVI
LIABILITY TO PAY IN CERTAIN CASES

85.

(1)  Where  a  taxable  person,  liable  to  pay  tax  under  this  Act,
transfers his business in whole or in part, by sale, gift, lease, leave and license,
hire or  in any other  manner whatsoever, the  taxable person and  the person
to whom the business is so transferred shall, jointly and severally, be liable
wholly or to the extent of such transfer, to pay the tax, interest or any penalty
due  from  the  taxable  person  upto  the  time  of  such  transfer,  whether  such
tax,  interest  or  penalty  has  been  determined  before  such  transfer,  but  has
remained  unpaid  or  is  determined  thereafter.

(2) Where  the  transferee  of  a  business  referred  to  in  sub-section  (1)
carries  on  such  business  either  in  his  own  name  or  in  some  other  name,  he
shall be liable to pay tax on the supply of goods or services or both effected by
him with effect from the date of such transfer and shall, if he is a registered
person  under  this  Act,  apply  within  the  prescribed  time  for  amendment  of
his  certificate  of  registration.

Liability  in
case  of
transfer  of
business.

Liability  of
agent  and
principa l.

86. Where an agent supplies or receives any taxable goods on behalf of
his  principal,  such  agent  and  his  principal  shall,  jointly  and  severally,  be
liable to pay the tax payable on such goods under this Act.

Liability  in
case  of
amalgama-
tion  or
merger  of
co m p a n ie s.

87.

(1)  When  two  or  more  companies  are  amalgamated  or  merged  in
pursuance of an order of court or of Tribunal or otherwise and the order is to
take effect from a date earlier to the date of the order and any two or more of
such companies have supplied or received any goods or services or both to or
from  each  other  during  the  period  commencing  on  the  date  from  which  the
order takes effect till the date of the order, then such transactions of supply
and  receipt  shall  be  included  in  the  turnover  of  supply  or  receipt  of  the
respective  companies  and they  shall  be  liable  to pay  tax  accordingly.

(2) Notwithstanding  anything  contained  in  the  said  order,  for  the
purposes  of  this  Act,  the  said  two  or  more  companies  shall  be  treated  as
distinct  companies  for  the  period  up  to  the  date  of  the  said  order  and  the
registration  certificates  of  the  said  companies  shall  be  cancelled  with  effect
from the date of the said order.

Liability  in
case  of
company  in
liquidation.

88.

(1) When any company is being wound up whether under the orders
of  a  court  or  Tribunal  or  otherwise,  every  person  appointed  as  receiver  of
any  assets  of  a  company  (hereafter  in  this  section  referred  to  as  the
“liquidator”), shall, within thirty days after his appointment, give intimation
of  his  appointment  to  the  Commissioner.

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65

18  of
2013.

(2) The  Commissioner  shall,  after  making  such  inquiry  or  calling  for
such information as he may deem fit, notify the liquidator within three months
from  the  date  on  which  he  receives  intimation  of  the  appointment  of  the
liquidator,  the  amount  which  in  the  opinion  of  the  Commissioner  would  be
sufficient to provide for any tax, interest or penalty which is then, or is likely
thereafter  to  become, payable  by  the  company.

(3) When  any  private  company  is  wound  up  and  any  tax,  interest  or
penalty  determined  under  this  Act  on  the  company  for  any  period,  whether
before  or  in  the  course  of  or  after  its  liquidation,  cannot  be  recovered,  then
every  person  who  was  a  director  of  such  company  at  any  time  during  the
period for which the tax was due shall, jointly and severally, be liable for the
payment of such tax, interest or penalty, unless he proves to the satisfaction
of the Commissioner that such non-recovery cannot be attributed to any gross
neglect, misfeasance or breach of duty on his part in relation to the affairs of
the  company.

89.

(1) Notwithstanding anything contained in the Companies Act, 2013,
where any tax, interest or penalty due from a private company in respect of
any  supply  of  goods  or  services  or  both  for  any  period  cannot  be  recovered,
then,  every  person  who  was  a  director  of  the  private  company  during  such
period  shall,  jointly  and  severally,  be  liable  for  the  payment  of  such  tax,
interest or penalty unless he proves that the non-recovery cannot be attributed
to any gross neglect, misfeasance or breach of duty on his part in relation to
the affairs of the company.

(2) Where  a  private  company  is  converted  into  a  public  company  and
the  tax,  interest  or  penalty  in  respect  of  any  supply  of  goods  or  services  or
both for any period during which such company was a private company cannot
be  recovered  before  such  conversion,  then,  nothing  contained  in  sub-section
(1) shall apply to any person who was a director of such private company in
relation to any tax,  interest or penalty in respect of such  supply of goods or
services  or  both  of  such  private  company :

Provided  that  nothing  contained  in  this  sub-section  shall  apply  to  any

personal  penalty  imposed  on  such  director.

Liability  of
d i r e c t o r s
of  private
c om pa ny .

90. Notwithstanding  any  contract  to  the  contrary  and  any  other  law
for the time being in force, where any firm is liable to pay any tax, interest or
penalty  under  this  Act,  the  firm  and  each  of  the  partners  of  the  firm  shall,
jointly and severally, be liable for such payment :

Liability  of
partners  of
firm  to  pay
tax.

Provided  that  where  any  partner  retires  from  the  firm,  he  or  the  firm,
shall intimate the date of retirement of the said partner to the Commissioner
by a  notice in that  behalf in writing  and such partner  shall be liable  to pay
tax,  interest  or  penalty  due  upto  the  date  of  his  retirement  whether
determined  or  not,  on  that  date :

Provided  further  that  if  no  such  intimation  is  given  within  one  month
from the date of retirement, the liability of such partner under the first proviso
shall  continue  until  the  date  on  which  such  intimation  is  received  by  the
Commissioner.

91. Where the business in respect of which any tax, interest or penalty
is payable under this Act is carried on by any guardian, trustee or agent of a
minor  or other  incapacitated person  on behalf  of and  for the  benefit of  such
minor  or  other  incapacitated  person,  the  tax,  interest  or  penalty  shall  be
levied  upon  and  recoverable  from  such  guardian,  trustee  or  agent  in  like
manner  and  to  the  same  extent  as  it  would  be  determined  and  recoverable
¦ÉÉMÉ +É`ö--94-9

Liability  of
guardians,
trust ees,
e t c .

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Liability  of
Court  of
Wards,  etc.

S p ec ia l
p ro v is i on s
r eg a r d in g
liability  to
pay  tax,
interest  or
penalty  in
c er t a i n
ca ses.

from any such minor or other incapacitated person, as if he were a major or
capacitated person and as if he were conducting the business himself, and all
the  provisions  of  this  Act  or  the  rules  made  thereunder  shall  apply
accordingly.

92. Where  the  estate  or  any  portion  of  the  estate  of  a  taxable  person
owning a business in respect of which any tax, interest or penalty is payable
under this Act is under the control of the Court of Wards, the Administrator
General,  the  Official  Trustee  or  any  receiver  or  manager  (including  any
person,  whatever  be  his  designation,  who  in  fact  manages  the  business)
appointed by or under any order of a court, the tax, interest or penalty shall
be levied upon and be recoverable from such Court of Wards, Administrator
General,  Official  Trustee,  receiver  or  manager  in  like  manner  and  to  the
same extent  as it  would be  determined and  be recoverable  from the  taxable
person as if he were conducting the business himself, and all the provisions
of  this  Act  or  the  rules  made  thereunder  shall  apply  accordingly.

93.

(1)  Save  as  otherwise  provided  in  the  Insolvency  and  Bankruptcy
Code, 2016, where a person, liable to pay tax, interest or penalty under this
Act, dies,  then––

31  of
2016.

(a) if a business carried on by the person is continued after his death
by his legal representative or any other person, such legal representative
or other person,  shall be liable to  pay tax, interest or  penalty due from
such person under this Act ; and

(b) if the business carried on by the person is discontinued, whether
before or after his death, his legal representative shall be liable to pay,
out  of  the  estate  of  the  deceased,  to  the  extent  to  which  the  estate  is
capable of meeting the charge, the tax, interest or penalty due from such
person  under  this  Act,

whether  such tax,  interest  or penalty  has been  determined  before his  death
but has remained unpaid or is determined after his death.

(2) Save as otherwise provided in the Insolvency and Bankruptcy Code,
2016, where a taxable person, liable to pay tax, interest or penalty under this
Act, is a Hindu Undivided Family or an association of persons and the property
of  the  Hindu  Undivided  Family  or  the  association  of  persons  is  partitioned
amongst the various members or groups  of members, then, each member or
group of members shall, jointly and severally, be liable to pay the tax, interest
or  penalty  due  from  the  taxable  person  under  this  Act  upto  the  time  of  the
partition  whether  such  tax,  penalty  or  interest  has  been  determined  before
partition  but  has  remained  unpaid  or  is  determined  after  the  partition.

(3) Save as otherwise provided in the Insolvency and Bankruptcy Code,
2016, where a taxable person, liable to pay tax, interest or penalty under this
Act, is a firm, and the firm is dissolved, then, every person who was a partner
shall,  jointly  and  severally,  be  liable  to  pay  the  tax,  interest  or  penalty  due
from the firm under  this Act upto the time of  dissolution whether such tax,
interest  or  penalty  has  been  determined  before  the  dissolution,  but  has
remained  unpaid  or  is  determined  after  dissolution.

31  of
2016.

31  of
2016.

(4) Save as otherwise provided in the Insolvency and Bankruptcy Code,
2016, where a taxable person liable to pay tax, interest or penalty under this
Act,—

31  of
2016.

(a) is the guardian of a ward on whose behalf the business is carried

on by the guardian ; or

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67

(b)  is  a  trustee  who  carries  on  the  business  under  a  trust  for  a

beneficiary,

then, if the guardianship or trust is terminated, the ward or the beneficiary
shall be liable to pay the tax, interest or penalty due from the taxable person
upto the time of the termination of the guardianship or trust, whether such
tax,  interest  or  penalty  has  been  determined  before  the  termination  of
guardianship or trust but has remained unpaid or is determined thereafter.

94.

(1) Where a taxable person is a firm or an association of persons or
a  Hindu  Undivided  Family  and  such  firm,  association  or  family  has
discontinued  business––

Liability  in
o t h e r
ca ses.

(a) the tax, interest or penalty payable under this Act by such firm,
association  or  family  upto  the  date  of  such  discontinuance  may  be
determined as if no such  discontinuance had taken place ; and

(b)  every  person  who,  at  the  time  of  such  discontinuance,  was  a
partner  of  such  firm,  or  a  member  of  such  association  or  family,  shall,
notwithstanding such discontinuance, jointly and severally, be liable for
the  payment  of  tax  and  interest  determined  and  penalty  imposed  and
payable by such firm, association or family, whether such tax and interest
has  been  determined  or  penalty  imposed  prior  to  or  after  such
discontinuance and subject as aforesaid, the provisions of this Act shall,
so  far  as  may  be,  apply  as  if  every  such  person  or  partner  or  member
were  himself  a  taxable  person.
(2) Where  a  change  has  occurred  in  the  constitution  of  a  firm  or  an
association of persons, the partners of the firm or members of association, as
it  existed  before  and  as  it  exists  after  the  reconstitution,  shall,  without
prejudice  to  the  provisions  of  section  90,  jointly  and  severally,  be  liable  to
pay tax, interest or penalty due from such firm or association for any period
before  its  reconstitution.

(3) The provisions of sub-section (1) shall, so far as may be, apply where
the  taxable  person,  being  a  firm  or  association  of  persons  is  dissolved  or
where  the  taxable  person,  being  a  Hindu  Undivided  Family,  has  effected
partition  with  respect  to  the  business  carried  on  by  it  and  accordingly
references  in  that  sub-section  to  discontinuance  shall  be  construed  as
reference  to  dissolution  or  to  partition.

Explanation.––For  the  purposes  of  this  Chapter,––

6  of
2009.

(i)  a  “Limited  Liability  Partnership”  formed  and  registered  under
the  provisions  of  the  Limited Liability  Partnership  Act,  2008  shall  also
be considered as a firm ;

(ii) “court” means the District Court, High Court or Supreme Court.

CHAPTER  XVII
ADVANCE RULING

95.

In  this  Chapter,  unless  the  context  otherwise  requires,––
(a) “advance ruling” means a decision provided by the Authority or
the  Appellate  Authority  to  an  applicant  on  matters  or  on  questions
specified in sub-section (2) of section 97 or sub-section (1) of section 100,
in  relation  to  the  supply  of  goods  or  services  or  both  being  undertaken
or  proposed  to  be  undertaken  by  the  applicant ;

(b) “Appellate  Authority”  means  the  Appellate  Authority  for

Advance  Ruling  constituted  under  section  99 ;

Definitions. 

¦ÉÉMÉ +É`ö--94-9+

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(c) “applicant” means any person registered or desirous of obtaining

registration  under  this  Act ;

(d) “application” means an application made to the Authority under

sub-section (1) of section 97 ;

(e) “Authority” means the Authority for Advance Ruling, constituted

under  section  96.

Constitution
o f
A ut ho r it y
f o r
A d v a n c e
Ruling.

96.

(1) The  Government shall,  by  notification,  constitute an  Authority

to be known as the Maharashtra Authority for Advance Ruling :

Provided  that  the  Government  may,  on  the  recommendation  of  the
Council, notify any Authority located in another State to act as the Authority
for the State.

(2) The Authority shall consist of—

(i) one member from amongst the officers of central tax ; and
(ii) one member from amongst the officers of State tax,

to  be  appointed  by  the  Central  Government  and  the  State  Government,
respectively.

(3)  The  qualifications,  the  method  of  appointment  of  the  members  and
the terms and conditions of their services shall be such as may be prescribed.

Applica tion
f o r
a dv a nc e
ruling.

97.

(1) An applicant desirous of obtaining an advance ruling under this
Chapter may make an application in such form and manner and accompanied
by such fee as may be prescribed, stating the question on which the advance
ruling is  sought.

(2)  The question  on  which  the advance  ruling  is  sought under  this  Act,

shall be in respect of,—

(a)  classification of  any  goods  or  services  or  both ;
(b) applicability of a notification issued under the provisions of this

Act ;

(c) determination of time and value of supply of goods or services or

both ;

(d)  admissibility of  input  tax  credit  of  tax  paid  or  deemed  to  have

been  paid ;

(e) determination of the liability to pay tax on any goods or services

or  both ;

(f)  whether  applicant  is  required  to  be  registered ;
(g) whether any particular thing done by the applicant with respect
to  any  goods  or  services  or  both  amounts  to  or  results  in  a  supply  of
goods or services or both, within the meaning of that term.

P r o c e d u r e
on  receipt
o f
application.

98.

(1)  On  receipt  of  an  application,  the  Authority  shall  cause  a  copy
thereof  to  be  forwarded  to  the  concerned  officer  and,  if  necessary,  call  upon
him  to  furnish  the  relevant  records :

Provided that  where  any  records  have  been  called  for  by  the  Authority
in  any  case,  such  records  shall,  as  soon  as  possible,  be  returned  to  the  said
concerned  officer.

(2) The Authority may, after examining the application and the records
called  for  and  after  hearing  the  applicant  or  his  authorised  representative
and  the  concerned  officer  or  his  authorised  representative,  by  order,  either
admit  or  reject  the application :

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69

Provided  that  the  Authority  shall  not  admit  the  application  where  the
question  raised  in  the  application  is  already  pending  or  decided  in  any
proceedings  in  the  case  of  an  applicant  under  any  of  the  provisions  of  this
Act :

Provided  further  that  no  application  shall  be  rejected  under  this  sub-

section unless  an opportunity of hearing  has been given to  the applicant :

Provided also that where the application is rejected, the reasons for such

rejection  shall  be  specified  in  the  order.

(3) A copy of every order made under sub-section (2) shall be sent to the

applicant  and  to  the  concerned  officer.

(4) Where an application is admitted under sub-section (2), the Authority
shall, after examining such further material as may be placed before it by the
applicant or obtained by the Authority and after providing an opportunity of
being  heard  to  the  applicant  or  his  authorised  representative  as  well  as  to
the concerned officer or his authorised representative, pronounce its advance
ruling  on  the  question  specified  in  the  application.

(5) Where the members of the Authority differ on any question on which
the  advance  ruling  is  sought,  they  shall  state  the  point  or  points  on  which
they differ and make a reference to the Appellate Authority for hearing and
decision  on  such  question.

(6) The  Authority  shall  pronounce  its  advance  ruling  in  writing  within

ninety  days  from  the  date  of  receipt  of  application.

(7) A copy of the advance ruling pronounced by the Authority duly signed
by the members and certified in such manner as may be prescribed shall be
sent to the applicant, the concerned officer and the jurisdictional officer after
such  pronouncement.

99. The  Government  shall,  by  notification,  constitute  an  Authority  to
be known as Maharashtra Appellate Authority for Advance Ruling for Goods
and Services Tax for hearing appeals against the advance ruling pronounced
by  the  Advance  Ruling  Authority  consisting  of,—

(i) the Chief Commissioner of central tax as designated by the Board ;

Constitution
o f
A p p e l l a t e
A ut ho r it y
f o r
A d v a n c e
Ruling.

and

(ii) the Commissioner of State tax :

Provided  that  the  Government  may,  on  the  recommendations  of  the
Council,  notify  any  Appellate  Authority  located  in  another  State  or  Union
territory  to  act  as  the  Appellate  Authority  for  the  State.

100.

(1) The concerned officer, the jurisdictional officer or an applicant
aggrieved by any advance ruling pronounced under sub-section (4) of section
98, may  appeal to the  Appellate Authority.

Appeal  to
t h e
A p p e l l a t e
Authority.

(2) Every appeal under this section shall be filed within a period of thirty
days  from  the  date  on  which  the  ruling  sought  to  be  appealed  against  is
communicated  to  the  concerned  officer,  the  jurisdictional  officer  and  the
applicant :

Provided  that  the  Appellate  Authority  may,  if  it  is  satisfied  that  the
appellant  was  prevented  by  a  sufficient  cause  from  presenting  the  appeal
within the said period of thirty days, allow it to be presented within a further
period  not  exceeding  thirty  days.

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(3) Every appeal under this section shall be in such form, accompanied

by such fee and verified in such manner as may be prescribed.

Orders  of
A p p e l l a t e
Authority.

101.

(1)  The  Appellate  Authority  may,  after  giving  the  parties  to  the
appeal or reference an opportunity of being heard, pass such order as it thinks
fit,  confirming  or  modifying  the  ruling  appealed  against  or  referred  to.

(2) The order referred to in sub-section (1) shall be passed within a period
of  ninety  days  from  the  date  of  filing  of  the  appeal  under  section  100  or  a
reference  under  sub-section  (5)  of  section  98.

(3) Where  the  members  of  the  Appellate  Authority  differ  on  any  point
or points referred to in appeal or reference, it shall be deemed that no advance
ruling can be issued in respect of the question under the appeal or reference.
(4) A copy of the advance ruling pronounced by the Appellate Authority
duly signed by the Members and certified in such manner as may be prescribed
shall be sent to the applicant, the concerned officer, the jurisdictional officer
and  to  the  Authority  after  such  pronouncement.

102. The  Authority  or  the  Appellate  Authority  may  amend  any  order
passed by it under section 98 or section 101, so as to rectify any error apparent
on  the  face  of  the  record,  if  such  error  is  noticed  by  the  Authority  or  the
Appellate  Authority  on  its  own  accord,  or  is  brought  to  its  notice  by  the
concerned officer, the jurisdictional officer, or the applicant or the appellant
within a period of six months from the date of the order :

Provided that no rectification which has the effect of enhancing the tax
liability or reducing the amount of admissible input tax credit shall be made
unless the applicant or the appellant has been given an opportunity of being
heard.

Rectification
of  advance
ruling.

Applicability
of  advance
ruling.

103.

(1) The advance  ruling  pronounced  by  the  Authority  or  the

Appellate  Authority  under  this  Chapter  shall  be  binding  only  -

(a)  on the  applicant  who  had  sought  it   in respect  of  any  matter

referred to in sub-section (2) of section 97  for advance ruling ;

A d v a n c e
ruling  to
be  void  in
c er t a i n
circumstances.

(b)  on the  concerned  officer  or  the  jurisdictional  officer  in  respect

of  the  applicant.
(2) The  advance  ruling  referred  to  in  sub-section  (1)  shall  be  binding
unless the law, facts or circumstances supporting the original advance ruling
have  changed.

104.

(1)  Where  the  Authority  or  the  Appellate  Authority  finds  that
advance ruling pronounced by it under sub-section (4) of section 98 or under
sub-section  (1)  of  section  101  has  been  obtained  by  the  applicant  or  the
appellant  by  fraud  or  suppression  of  material  facts  or  misrepresentation  of
facts, it may, by order, declare such ruling to be void ab-initio and thereupon
all the provisions of this Act or the rules made thereunder shall apply to the
applicant or the appellant as if such advance ruling had never been made :
Provided that no order shall be passed under this sub-section unless an
opportunity of being heard has been given to the applicant or the appellant.
Explanation.––The period beginning with the date of such advance ruling
and  ending  with  the  date  of  order  under  this  sub-section  shall  be  excluded
while  computing  the  period  specified  in  sub-sections  (2)  and  (10)  of  section
73 or sub-sections (2) and (10) of section 74.

(2) A  copy  of  the  order  made  under  sub-section  (1)  shall  be  sent  to  the

applicant,  the  concerned  officer  and  the  jurisdictional  officer.

5  of
1908.

2  of
1974.

45  of
1860.

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105.

(1) The Authority or the Appellate Authority shall, for the purpose

of  exercising  its  powers  regarding  –

(a)  discovery  and  inspection ;
(b)  enforcing  the  attendance  of  any  person  and  examining  him  on

oath ;

(c)  issuing  commissions  and  compelling  production  of  books  of

account  and  other  records,

have all the powers of a civil court under the Code of Civil Procedure, 1908.

71

Powers  of
A ut ho r it y
a n d
A p p e l l a t e
Authority.

P r o c e d u r e
o f
A ut ho r it y
a n d
A p p e l l a t e
Authority.

Appeals  to
A p p e l l a t e
Authority.

(2) The  Authority  or  the  Appellate  Authority  shall  be  deemed  to  be  a
civil court for the purposes of section 195, but not for the purposes of Chapter
XXVI  of the  Code  of  Criminal Procedure,  1973,  and  every proceeding  before
the  Authority  or  the  Appellate  Authority  shall  be  deemed  to  be  a  judicial
proceedings within the meaning of sections 193 and 228, and for the purpose
of section 196 of the Indian Penal Code.

106. The  Authority  or  the  Appellate  Authority  shall,  subject  to  the

provisions  of  this  Chapter,  have  power  to  regulate  its  own  procedure.

CHAPTER–XVIII
APPEALS AND REVISION

107.

(1)  Any  person  aggrieved  by  any  decision  or  order  passed  under
this Act or the Central Goods and Services Tax Act by an adjudicating authority
may  appeal  to  such  Appellate  Authority  as  may  be  prescribed  within  three
months  from  the  date  on  which  the  said  decision  or  order  is  communicated
to  such  person.

(2) The  Commissioner  may,  on  his  own  motion,  or  upon  request  from
the  Commissioner  of  central  tax,  call  for  and  examine  the  record  of  any
proceeding  in  which  an  adjudicating  authority  has  passed  any  decision  or
order  under  this  Act  or  the  Central  Goods  and  Services  Tax  Act,  for  the
purpose of satisfying himself as to the legality or propriety of the said decision
or order and may, by order, direct any officer subordinate to him to apply to
the  Appellate  Authority  within  six  months  from  the  date  of  communication
of the said decision or order for the determination of such points arising out
of the said decision or order as may be specified by the Commissioner in his
order.

(3) Where, in pursuance of an order under sub-section (2), the authorised
officer  makes  an  application  to  the  Appellate  Authority,  such  application
shall be dealt  with by the Appellate Authority  as if it were  an appeal made
against the decision or order of the adjudicating authority and such authorised
officer  were  an  appellant  and  the  provisions  of  this  Act  relating  to  appeals
shall  apply  to  such  application.

(4) The  Appellate  Authority  may,  if  he  is  satisfied  that  the  appellant
was  prevented  by  sufficient  cause  from  presenting  the  appeal  within  the
aforesaid period of three months or six months, as the case may be, allow it
to  be  presented  within  a further  period  of  one  month.

(5) Every  appeal  under  this  section  shall  be  in  such  form  and  shall  be

verified in such manner as may be prescribed.

(6) No  appeal  shall  be  filed  under  sub-section  (1),  unless  the  appellant

has paid–

(a)  in  full,  such  part  of  the  amount  of  tax,  interest,  fine,  fee  and

penalty arising from the impugned order, as is admitted by him ; and

(b) a sum equal  to ten per cent. of the remaining  amount of tax in
dispute arising from the said order, in relation to which the appeal has
been  filed.

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(7) Where the appellant has paid the amount under sub-section (6), the
recovery  proceedings  for  the  balance  amount  shall  be  deemed  to  be  stayed.
(8) The  Appellate  Authority  shall  give  an  opportunity  to  the  appellant

of being  heard.

(9) The Appellate Authority may, if sufficient cause is shown at any stage
of hearing of an appeal, grant time to the parties or any of them and adjourn
the  hearing of  the  appeal for  reasons to  be  recorded in  writing :

Provided  that  no  such  adjournment  shall  be  granted  more  than  three

times to a party during hearing of the appeal.

(10) The Appellate  Authority may,  at the  time of  hearing of  an appeal,
allow an appellant to add any ground of appeal not specified in the grounds
of appeal, if it is satisfied that the omission of that ground from the grounds
of appeal was not  wilful or unreasonable.

(11) The  Appellate  Authority  shall,  after  making  such  further  inquiry
as may be necessary, pass such order, as it thinks just and proper, confirming,
modifying  or  annulling  the  decision  or  order  appealed  against  but  shall  not
refer the case back to the adjudicating authority that passed the said decision
or  order :

Provided  that  an  order  enhancing  any  fee  or  penalty  or  fine  in  lieu  of
confiscation or confiscating goods of greater value or reducing the amount of
refund or input tax credit shall not be passed unless the appellant has been
given a reasonable opportunity of showing cause against the proposed order :
Provided  further  that  where  the  Appellate  Authority  is  of  the  opinion
that  any  tax  has  not  been  paid  or  short-paid  or  erroneously  refunded,  or
where input tax credit has been wrongly availed or utilised, no order requiring
the  appellant  to pay  such  tax  or input  tax  credit  shall  be passed  unless  the
appellant  is  given  notice  to  show  cause  against  the  proposed  order  and  the
order  is  passed  within  the  time  limit  specified  under  section  73  or  section
74.

(12) The  order  of  the  Appellate  Authority  disposing  of  the  appeal  shall
be in writing and shall state the points for determination, the decision thereon
and  the  reasons for  such  decision.

(13) The  Appellate  Authority  shall,  where  it  is  possible  to  do  so,  hear
and decide every appeal within a period of one year from the date on which
it  is  filed :

Provided  that  where  the  issuance  of  order  is  stayed  by  an  order  of  a
court or Tribunal, the period of such stay shall be excluded in computing the
period  of  one  year.

(14) On  disposal  of  the  appeal,  the  Appellate  Authority  shall
communicate the order passed by it to  the appellant, respondent and to the
adjudicating  authority.

(15) A copy of the order passed by the Appellate Authority shall also be
sent  to  the  Commissioner  or  the  authority  designated  by  him  in  this  behalf
and the jurisdictional Commissioner of Central tax or an authority designated
by him in this behalf.

(16) Every order passed under this section shall, subject to the provisions
of section 108 or section 113 or section 117 or section 118 be final and binding
on  the  parties.

73

Powers  of
Re vis ion a l
Authority.

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108.

(1)  Subject  to  the  provisions  of  section  121  and  any  rules  made
thereunder,  the  Revisional  Authority  may,  on  his  own  motion,  or  upon
information received by him or on request from the Commissioner of central
tax,  call  for  and  examine  the  record  of  any  proceedings,  and  if  he  considers
that any decision or order passed under this Act or under the Central Goods
and Services Tax Act by any officer subordinate to him is erroneous in so far
as it is prejudicial to the interest of revenue and is illegal or improper or has
not taken into account certain material facts, whether available at the time
of issuance of the said order or not or in consequence of an observation by the
Comptroller  and  Auditor  General  of  India,  he  may,  if  necessary,  stay  the
operation of such decision or order for such period as he deems fit and after
giving the person concerned an opportunity of being heard and after making
such further inquiry as may be necessary, pass such order, as he thinks just
and proper, including enhancing or modifying or annulling the said decision
or  order.

(2) The  Revisional  Authority  shall  not  exercise  any  power  under  sub-

section (1), if––

(a)  the  order  has  been  subject  to  an  appeal  under  section  107  or

section 112 or section 117 or section 118 ; or

(b) the period specified under sub-section (2) of section 107 has not
yet  expired  or  more  than  three  years  have  expired  after  the  passing  of
the  decision  or  order  sought  to  be  revised ;  or

(c) the order has already been taken for revision under this section

at an earlier stage ; or

(d) the order has been passed in exercise of the powers under sub-

section  (1) :
Provided  that  the  Revisional  Authority  may  pass  an  order  under  sub-
section (1) on any point which has not been raised and decided in an appeal
referred to in clause (a) of sub-section (2), before the expiry of a period of one
year from the date of the order in such appeal or before the expiry of a period
of three years referred to in clause (b) of that sub-section, whichever is later.
(3) Every order passed in revision under sub-section (1) shall, subject to
the provisions of section 113 or section 117 or section 118, be final and binding
on  the  parties.

(4) If the said decision or order involves an issue on which the Appellate
Tribunal or the High Court has given its decision in some other proceedings
and an appeal to the High Court or the Supreme Court against such decision
of  the  Appellate  Tribunal  or  the  High  Court  is  pending,  the  period  spent
between  the  date  of  the  decision  of  the  Appellate  Tribunal  and  the  date  of
the decision of the High Court or the date of the decision of the High Court
and  the  date  of  the  decision  of  the  Supreme  Court  shall  be  excluded  in
computing the period of limitation referred to in clause (b) of sub-section (2)
where proceedings for revision have been initiated by way of issue of a notice
under  this  section.

(5) Where  the  issuance  of  an  order  under  sub-section  (1)  is  stayed  by
the  order  of  a  court  or  Appellate  Tribunal,  the  period  of  such  stay  shall  be
excluded  in  computing  the  period  of  limitation  referred  to  in  clause  (b)  of
sub-section  (2).

(6) For  the  purposes  of  this  section,  the  term,––

(i)  “record”  shall  include  all  records  relating  to  any  proceedings
under  this  Act  available  at  the  time  of  examination  by  the  Revisional
Authority ;

(ii) “decision” shall include intimation given by any officer lower in

rank  than  the  Revisional  Authority.

¦ÉÉMÉ +É`ö--94-10

74

A p p e l l a t e
T ribuna l
a n d
B e n c h e s
t he re of .

P r e s i d e n t
a n d
M e m b e r s
o f
A p p e l l a t e
Tribunal,
t h e i r
qualifi-
cation,
a pp oi nt -
m en t ,
c on d it i on s
of  service,
e t c .

P r o c e d u r e
b e f o r e
A p p e l l a t e
Tribunal.

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109.

(1) Subject  to  the  provisions  of  this  Chapter,  the  Goods  and
Services  Tax  Tribunal  constituted  under  the  Central  Goods  and  Services
Tax Act shall be the Appellate Tribunal for hearing appeals against the orders
passed by the Appellate Authority or the Revisional Authority under this Act.
(2) The  constitution  and  jurisdiction  of  the  State  Bench  and  the  Area
Benches  located  in  the  State  shall  be  in  accordance  with  the  provisions  of
section  109  of  the  Central  Goods  and  Services  Tax  Act  or  the  rules  made
thereunder.

110. The  qualifications,  appointment,  salary  and  allowances,  terms  of
office,  resignation  and  removal  of  the  President  and  Members  of  the  State
Bench and Area Benches shall be in accordance with the provisions of section
110 of the Central Goods and Services Tax Act.

111.

(1)  The  Appellate  Tribunal  shall  not,  while  disposing  of  any
proceedings  before  it  or  an  appeal  before  it,  be  bound  by  the  procedure  laid
down  in  the  Code  of  Civil  Procedure,  1908,  but  shall  be  guided  by  the
principles  of  natural  justice  and  subject  to  the  other  provisions  of  this  Act
and  the rules  made  thereunder, the  Appellate Tribunal  shall  have power  to
regulate  its  own  procedure.

5  of
1908.

(2) The  Appellate  Tribunal  shall,  for  the  purposes  of  discharging  its
functions under this Act, have the same powers as are vested in a civil court
under the Code of Civil Procedure, 1908, while trying a suit in respect of the
following  matters,  namely :—

5  of
1908.

(a)  summoning  and  enforcing  the  attendance  of  any  person  and

examining him on oath ;

(b)  requiring  the  discovery  and  production  of  documents ;
(c)  receiving  evidence  on  affidavits ;
(d)  subject  to  the  provisions  of  sections  123  and  124  of  the  Indian
Evidence  Act,  1872,  requisitioning  any  public  record  or  document  or  a
copy  of  such  record  or  document  from  any  office ;

1  of
1872.

(e)  issuing  commissions  for  the  examination  of  witnesses  or

documents ;

(f)  dismissing  a  representation  for  default  or  deciding  it ex-parte ;
(g)  setting  aside  any  order  of  dismissal  of  any  representation  for

default or any order passed by it ex-parte ; and

(h) any other matter which may be prescribed.

(3) Any order made by the Appellate Tribunal may be enforced by it in
the  same  manner  as  if  it  were  a  decree  made  by  a  court  in  a  suit  pending
therein, and it shall be lawful for the Appellate Tribunal to send for execution
of  its  orders  to  the  court  within  the  local  limits  of  whose  jurisdiction,—

(a) in the case of an order against a company, the registered office

of the company is situated ; or

(b)  in  the  case  of  an  order  against  any  other  person,  the  person
concerned voluntarily resides or carries on business or personally works
for gain.

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75

Appeals  to
A p p e l l a t e
Tribunal.

45  of
1860.

2  of
1974.

(4) All proceedings before the Appellate Tribunal shall be deemed to be
judicial proceedings within the meaning of sections 193 and 228, and for the
purposes of section 196 of the Indian Penal Code, and the Appellate Tribunal
shall be deemed to be civil court for the purposes of section 195 and Chapter
XXVI  of  the  Code of  Criminal  Procedure,  1973.

112.

(1)  Any  person  aggrieved  by  an  order  passed  against  him  under
section 107 or section 108 of this Act or the Central Goods and Services Tax
Act  may  appeal  to  the  Appellate  Tribunal  against  such  order  within  three
months  from  the  date  on  which  the  order  sought  to  be  appealed  against  is
communicated  to  the  person  preferring  the  appeal.

(2) The  Appellate  Tribunal  may,  in  its  discretion,  refuse  to  admit  any
such  appeal  where  the  tax  or  input  tax  credit  involved  or  the  difference  in
tax  or  input  tax  credit  involved  or  the  amount  of  fine,  fee  or  penalty
determined  by  such  order,  does  not  exceed  fifty  thousand  rupees.

(3) The  Commissioner  may,  on  his  own  motion,  or  upon  request  from
the Commissioner of central tax, call for and examine the record of any order
passed  by  the  Appellate  Authority  or  the  Revisional  Authority  under  this
Act  or  under  the  Central  Goods  and  Services  Tax  Act  for  the  purpose  of
satisfying himself as to the legality or propriety of the said order and may, by
order, direct any officer subordinate to him to apply to the Appellate Tribunal
within six months from the date on which the said order has been passed for
determination of such points arising out of the said order as may be specified
by  the  Commissioner  in  his  order.

(4) Where in pursuance of an order under sub-section (3) the authorised
officer makes an application to the Appellate Tribunal, such application shall
be dealt with by the Appellate Tribunal as if it were an appeal made against
the  order  under  sub-section  (11)  of  section  107  or  under  sub-section  (1)  of
section 108 and the provisions of this Act shall apply to such application, as
they  apply  in relation  to  appeals  filed under  sub-section  (1).

(5) On  receipt  of  notice  that  an  appeal  has  been  preferred  under  this
section,  the  party  against  whom  the  appeal  has  been  preferred  may,
notwithstanding  that  he  may  not  have  appealed  against  such  order  or  any
part thereof, file, within forty-five days of the receipt of notice, a memorandum
of cross-objections, verified in the prescribed manner, against any part of the
order  appealed  against  and  such  memorandum  shall  be  disposed  of  by  the
Appellate Tribunal, as if it were an appeal presented within the time specified
in sub-section (1).

(6) The  Appellate  Tribunal  may  admit  an  appeal  within  three  months
after  the  expiry  of  the  period  referred  to  in  sub-section  (1),  or  permit  the
filing  of  a  memorandum  of  cross-objections  within  forty-five  days  after  the
expiry of the period referred to in sub-section (5), if it is satisfied that there
was  sufficient  cause  for  not  presenting  it  within  that  period.

(7) An  appeal  to  the  Appellate  Tribunal  shall  be  in  such  form,  verified
in such manner and shall be accompanied by such fee, as may be prescribed.
(8) No  appeal  shall  be  filed  under  sub-section  (1),  unless  the  appellant

has paid––

(a)  in  full,  such  part  of  the  amount  of  tax,  interest,  fine,  fee  and

penalty arising from the impugned order, as is admitted by him, and

(b) a sum equal to twenty per cent. of the remaining amount of tax
in  dispute,  in  addition  to  the  amount  paid  under  sub-section  (6)  of  the

¦ÉÉMÉ +É`ö--94-10+

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section 107, arising from the said order, in relation to which the appeal
has been filed.
(9) Where the appellant has paid the amount as per sub-section (8), the
recovery  proceedings  for  the  balance  amount  shall  be  deemed  to  be  stayed
till  the  disposal of  the  appeal.

(10) Every  application  made  before  the  Appellate  Tribunal,  —

(a)  in an  appeal for  rectification of  error  or for  any other  purpose ;

or

(b)  for  restoration  of  an  appeal  or  an  application, shall  be

accompanied by such fees as may be prescribed.

113.

(1)  The  Appellate  Tribunal  may,  after  giving  the  parties  to  the
appeal an opportunity  of being heard, pass  such orders thereon as  it thinks
fit, confirming, modifying or annulling the decision or order appealed against
or  may  refer  the  case  back  to  the  Appellate  Authority,  or  the  Revisional
Authority or to the original adjudicating authority, with such directions as it
may  think  fit,  for  a  fresh  adjudication  or  decision  after  taking  additional
evidence,  if  necessary.

(2) The Appellate Tribunal may, if sufficient cause is shown, at any stage
of hearing of an appeal, grant time to the parties or any of them and adjourn
the  hearing of  the  appeal for  reasons to  be  recorded in  writing :

Provided  that  no  such  adjournment  shall  be  granted  more  than  three

times to a party during hearing of the appeal.

(3) The  Appellate  Tribunal  may  amend  any  order  passed  by  it  under
sub-section (1) so as to rectify any error apparent on the face of the record, if
such error is noticed by it on its own accord, or is brought to its notice by the
Commissioner  or  the  Commissioner  of  central  tax  or  the  other  party  to  the
appeal within a period of three months  from the date of the order :

Provided  that  no  amendment  which  has  the  effect  of  enhancing  an
assessment or  reducing a refund or  input tax credit or  otherwise increasing
the liability of the other party, shall be made under this sub-section, unless
the party has been given an opportunity of being heard.

(4) The  Appellate  Tribunal  shall,  as  far  as  possible,  hear  and  decide

every appeal within a period of one year from the date on which it is filed.

(5) The Appellate Tribunal shall send a copy of every order passed under
this  section  to  the  Appellate  Authority  or  the  Revisional  Authority,  or  the
original  adjudicating  authority,  as  the  case  may  be,  the  appellant  and  the
Commissioner  or  the  jurisdictional  Commissioner  of  central  tax.

(6) Save as provided in section 117 or section 118, orders passed by the

Appellate Tribunal on an appeal shall be final and binding on the parties.

114. The State President shall exercise such financial and administrative
powers over the State Bench and Area Benches of the Appellate Tribunal in
a State, as may be prescribed :

Provided  that  the  State  President  shall  have  the  authority  to  delegate
such  of  his  financial  and  administrative  powers  as  he  may  think  fit  to  any
other  Member  or  any  officer  of  the State  Bench  or  Area  Benches,  subject  to
the  condition  that  such  Member  or  officer  shall,  while  exercising  such
delegated powers, continue to act under the direction, control and supervision
of  the  State  President.

Orders  of
A p p e l l a t e
Tribunal.

Fina ncia l
a n d
a dm i ni-
stra tive
powers  of
S ta te
P r es id en t.

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115. Where  an  amount  paid  by  the  appellant  under  sub-section  (6)  of
section  107  or  sub-section  (8)  of  section  112  is  required  to  be  refunded
consequent  to  any  order  of  the  Appellate  Authority  or  of  the  Appellate
Tribunal,  interest  at  the  rate  specified  under  section  56  shall  be  payable  in
respect of such refund from the date of payment of the amount till the date of
refund of such amount.

116.

(1)  Any  person  who  is  entitled  or  required  to  appear  before  an
officer appointed under this Act, or the Appellate Authority or the Appellate
Tribunal in connection with any proceedings under this Act, may, otherwise
than when  required under this  Act to  appear personally for  examination on
oath or affirmation, subject to the other provisions of this section, appear by
an  authorised  representative.

(2) For the purposes of this Act, the expression “authorised representative”
shall mean a person authorised by the person referred to in sub-section (1) to
appear on his behalf, being —

77

Interest  on
refund  of
a m ou n t
paid  for
a d m is si on
of  appeal.

Appearance
b y
a ut ho ri se d
r e p r e -
sentative.

(a)  his  relative  or  regular  employee ;  or
(b) an advocate who is entitled to practice in any court in India, and
who has not been debarred from practicing before any court in India ; or
(c)  any  chartered  accountant,  a  cost  accountant  or  a  company
secretary,  who  holds  a  certificate  of  practice  and  who  has  not  been
debarred  from  practice ;  or

(d) a retired officer of the Commercial Tax Department of any State
Government  or  Union  territory  or  of  the  Board  who,  during  his  service
under  the  Government,  had  worked  in  a  post  not  below  the  rank  than
that of a Group-B Gazetted officer for a period of not less than two years :
Provided that such officer shall not be entitled to appear before any
proceedings under this Act for a period of one year from the date of his
retirement  or  resignation ;  or

(e) any person who has been authorised to act as a goods and services

tax  practitioner  on  behalf  of  the  concerned  registered  person.

(3) No  person,  —

(a)  who  has  been  dismissed  or  removed  from  Government  service ;

or

(b) who  is  convicted  of  an  offence  connected  with  any  proceedings
under this Act, the Central Goods and Services Tax Act, the Integrated
Goods and Services Tax Act or the Union Territory Goods and Services
Tax Act, or under the existing law or under any of the Acts passed by a
State  Legislature  dealing  with  the  imposition  of  taxes  on  sale  of  goods
or  supply  of  goods or  services  or  both ;  or

(c) who  is  found  guilty  of  misconduct  by  the  prescribed  authority ;
(d) who has been adjudged as an insolvent,

shall  be  qualified to  represent  any  person under  sub-section  (1)––

(i) for all times in case of persons referred to in clauses (a), (b) and

(c) ; and

(ii) for the period during which the insolvency continues in the case

of a person referred to in clause (d).

(4) Any  person  who  has  been  disqualified  under  the  provisions  of  the
Central  Goods  and  Services  Tax  Act  or  the  Goods  and  Services  Tax  Act  of
any other State or the Union Territory Goods and Services Tax Act shall be
deemed  to  be  disqualified  under  this  Act.

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Appeal  to
H i g h
C o u r t .

117.

(1) Any person aggrieved by any order passed by the State Bench
or  Area  Benches  of  the  Appellate  Tribunal  may  file  an  appeal  to  the  High
Court  and  the  High Court  may  admit  such  appeal,  if  it is  satisfied  that  the
case involves a substantial question of law.

(2) An appeal under sub-section (1) shall be filed within a period of one
hundred and eighty days from the date on which the order appealed against
is  received  by  the  aggrieved  person  and  it  shall  be  in  such  form,  verified  in
such manners  may be  prescribed :

Provided that the High Court may entertain an appeal after the expiry
of the said period if it is satisfied that there was sufficient cause for not filing
it  within  such  period.

(3) Where the High Court is satisfied that a substantial question of law
is involved in any case, it shall formulate that question and the appeal shall
be  heard  only  on  the  question  so  formulated,  and  the  respondents  shall,  at
the hearing of the appeal, be allowed to argue that the case does not involve
such  question :

Provided that nothing in this sub-section shall be deemed to take away
or  abridge  the  power  of  the  court  to  hear,  for  reasons  to  be  recorded,  the
appeal on any other substantial question of law not formulated by it, if it is
satisfied  that  the case  involves  such  question.

(4) The  High  Court  shall  decide  the  question  of  law  so  formulated  and
deliver such judgment thereon containing the grounds on which such decision
is founded and may award such cost as it deems fit.

(5) The High Court may determine any issue which–

(a)  has  not  been  determined  by  the  State  Bench  or  Area  Benches ;

or

(b)  has  been  wrongly  determined  by  the  State  Bench  or  Area
Benches, by reason of a decision on such question of law as herein referred
to in sub-section (3).
(6) Where  an  appeal  has  been  filed  before  the  High  Court,  it  shall  be
heard by a Bench of not less than two Judges of the High Court, and shall be
decided  in  accordance  with  the  opinion  of  such  Judges  or  of  the  majority,  if
any, of such Judges.

(7) Where there is no such majority, the Judges shall state the point of
law upon which they differ and the case shall, then, be heard upon that point
only,  by  one  or  more  of  the  other  Judges  of  the  High  Court  and  such  point
shall  be  decided  according  to  the  opinion  of  the  majority  of  the  Judges  who
have heard the case including those who first heard it.

(8) Where the High Court delivers a judgment in an appeal filed before
it under this section, effect shall be given to such judgment by either side on
the basis of a certified copy of the judgment.

(9) Save as otherwise provided in this Act, the provisions of the Code of
Civil Procedure, 1908,  relating to appeals to  the High Court shall,  as far as
may be, apply in the case of appeals under this section.

5  of
1908.

Appeal  to
S u p r e m e
C o u r t .

118.

(1) An appeal shall lie to the Supreme Court-

(a) from any order passed by the National Bench or Regional Benches

of  the  Appellate  Tribunal ;  or

(b) from any judgment or order passed by the High Court in an appeal
made  under  section  117  in  any  case which,  on  its  own  motion  or  on  an
application  made  by  or  on  behalf  of  the  party  aggrieved,  immediately
after passing of  the judgment or order,  the High Court certifies  to be a
fit one for appeal to the Supreme Court.

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79

5  of
1908.

(2) The  provisions  of  the  Code  of  Civil  Procedure,  1908,  relating  to
appeals  to  the  Supreme  Court  shall,  so  far  as  may  be,  apply  in  the  case  of
appeals under this section as they apply in the case of appeals from decrees
of a High Court.

(3) Where  the  judgment  of  the  High  Court  is  varied  or  reversed  in  the
appeal, effect shall be given to the order of the Supreme Court in the manner
provided in section 117 in the case of a judgment of the High Court.

119. Notwithstanding  that  an  appeal  has  been  preferred  to  the  High
Court or the Supreme Court, sums due to the Government as a result of an
order passed by the National or Regional Benches of the Appellate Tribunal
under sub-section (1) of section 113 or an order passed by the State Bench or
Area Benches of the Appellate Tribunal under sub-section (1) of section 113
or an order passed by the High Court under section 117, as the case may be,
shall be payable in accordance  with the order so passed.

Sums  due
to  be  paid
n ot w i th -
sta nding
appeal,  etc.

120.

(1) The Commissioner may, on the recommendations of the Council,
from  time  to  time,  issue  orders  or  instructions  or  directions  fixing  such
monetary limits, as he may deem fit, for the purposes of regulating the filing
of appeal or application by the officer of the State tax under the provisions of
this  Chapter.

Appeal  not
to  be  filed
in  certain
ca ses.

(2) Where, in pursuance of the orders or instructions or directions issued
under  sub-section  (1),  the  officer  of  the  State  tax  has  not  filed  an  appeal  or
application against any decision or order passed under the provisions of this
Act,  it  shall  not  preclude  such  officer  of  the  State  tax  from  filing  appeal  or
application in any other case involving the same or similar issues or questions
of law.

(3) Notwithstanding the fact that no appeal or application has been filed
by  the  officer  of  the  State  tax  pursuant  to  the  orders  or  instructions  or
directions issued under sub-section (1), no person, being a party in appeal or
application  shall  contend  that  the  officer  of  the  State  tax  has  acquiesced  in
the decision on  the disputed issue by  not filing an appeal  or application.

(4) The  Appellate  Tribunal  or  court  hearing  such  appeal  or  application
shall  have  regard  to  the  circumstances  under  which  appeal  or  application
was  not  filed  by  the  officer  of  the  State  tax  in  pursuance  of  the  orders  or
instructions  or  directions  issued  under  sub-section  (1).

121. Notwithstanding  anything  to  the  contrary  in  any  provisions  of
this Act, no appeal shall lie against any decision taken or order passed by an
officer of State tax if such decision taken or order passed relates to any one
or  more  of  the  following  matters,  namely :–

N o n -
a ppea la b le
d e c is i o n s
and  orders.

(a)  an  order of  the  Commissioner  or  other authority  empowered  to

direct  transfer  of  proceedings  from  one  officer  to  another  officer ;  or

(b) an order pertaining to the seizure or retention of books of account,

register  and  other  documents ;  or

(c)  an  order  sanctioning  prosecution  under  this  Act ;  or
(d) an order passed under section 80.

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CHAPTER  XIX
OFFENCES AND PENALTIES

Penalty  for
c er t a i n
offen ces.

122.

(1)  Where  a  taxable  person  who––

(i) supplies any goods or services or both without issue of any invoice
or issues an incorrect or false invoice  with regard to any such supply ;
(ii) issues any invoice or bill without supply of goods or services or
both  in  violation  of  the  provisions  of  this  Act  or  the  rules  made
thereunder ;

(iii)  collects  any  amount  as  tax  but  fails  to  pay  the  same  to  the
Government  beyond  a  period  of  three  months  from  the  date  on  which
such  payment  becomes  due ;

(iv)  collects  any  tax  in  contravention  of  the  provisions  of  this  Act
but  fails  to  pay  the  same  to  the  Government  beyond  a  period  of  three
months from the date on which such payment becomes due ;

(v) fails to deduct the tax in accordance with the provisions of sub-
section  (1)  of  section  51,  or  deducts  an  amount  which  is  less  than  the
amount required to be deducted under the said sub-section, or where he
fails to pay to the Government under sub-section (2) thereof, the amount
deducted  as  tax ;

(vi)  fails  to  collect  tax  in  accordance  with  the  provisions  of  sub-
section  (1)  of  section  52,  or  collects  an  amount  which  is  less  than  the
amount required to be collected under the said sub-section or where he
fails  to  pay  to  the  Government  the  amount  collected  as  tax  under  sub-
section (3) of section 52 ;

(vii) takes or utilizes input tax credit without actual receipt of goods
or  services  or  both  either  fully  or  partially,  in  contravention  of  the
provisions  of  this  Act  or  the  rules  made  thereunder ;

(viii) fraudulently obtains refund of tax under this Act ;

(ix) takes or distributes input tax credit in contravention of section

20,  or  the rules  made  thereunder ;

(x) falsifies or substitutes financial records or produces fake accounts
or  documents  or  furnishes  any  false  information  or  return  with  an
intention to evade payment of tax due under this Act ;

(xi)  is  liable  to  be  registered  under  this  Act  but  fails  to  obtain

registration ;

(xii)  furnishes  any  false  information  with  regard  to  registration
particulars,  either  at  the  time  of  applying  for  registration,  or
subsequently ;

(xiii)  obstructs  or  prevents  any  officer  in  discharge  of  his  duties

under  this  Act ;

(xiv)  transports  any  taxable  goods  without  the  cover  of  documents

as may be specified in this behalf ;

(xv)  suppresses  his  turnover  leading  to  evasion  of  tax  under  this

Act ;

(xvi)  fails  to  keep,  maintain  or  retain  books  of  account  and  other
documents  in  accordance  with  the  provisions  of  this  Act  or  the  rules
made  thereunder ;

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81

(xvii) fails to furnish information or documents called for by an officer
in accordance with the provisions of this Act or the rules made thereunder
or  furnishes  false  information  or  documents  during  any  proceedings
under  this  Act ;

(xviii) supplies, transports or stores any goods which he has reasons

to  believe  are  liable  to  confiscation  under  this  Act ;

(xix) issues any invoice or document by using the registration number

of  another  registered  person ;

(xx) tampers with, or destroys any material evidence or documents ;
(xxi) disposes off or tampers with any goods that have been detained,

seized,  or  attached  under  this  Act,

shall  be  liable  to  pay  a  penalty  of  ten  thousand  rupees  or  an  amount
equivalent  to  the  tax  evaded  or  the  tax  not  deducted  under  section  51  or
short  deducted  or  deducted  but  not  paid  to  the  Government  or  tax  not
collected  under  section  52  or  short  collected  or  collected  but  not  paid  to  the
Government  or  input  tax  credit  availed  of  or  passed  on  or  distributed
irregularly,  or  the  refund  claimed  fraudulently,  whichever  is  higher.

(2) Any registered person who supplies any goods or services or both on
which  any  tax  has  not  been  paid  or  short-paid  or  erroneously  refunded,  or
where  the  input  tax  credit has  been  wrongly  availed  or  utilized,-

(a) for  any  reason,  other  than  the  reason  of  fraud  or  any  willful
misstatement  or  suppression  of  facts  to  evade  tax,  shall  be  liable  to  a
penalty of ten thousand rupees or ten per cent. of the tax due from such
person,  whichever  is  higher ;

(b) for  reason  of  fraud  or  any  willful  misstatement  or  suppression
of  facts  to  evade  tax,  shall  be liable  to  a  penalty  equal  to  ten  thousand
rupees or  the tax  due from such  person, whichever  is higher.
(3) Any  person  who––

(a) aids or abets any of the offences specified in clauses (i) to (xxi) of

sub-section  (1) ;

(b)  acquires  possession  of,  or  in  any  way  concerns  himself  in
transporting,  removing,  depositing,  keeping,  concealing,  supplying,  or
purchasing or in any other manner deals with any goods which he knows
or has reasons to believe are liable to confiscation under this Act or the
rules  made  thereunder ;

(c) receives or is in any way concerned with the supply of, or in any
other manner deals with any supply of  services which he knows or has
reasons  to  believe  are  in  contravention  of  any  provisions  of  this  Act  or
the  rules  made  thereunder ;

(d) fails to appear before the officer of State tax, when issued with a
summon  for  appearance  to  give  evidence  or  produce  a  document  in  an
inquiry ;

(e)  fails  to  issue  invoice  in  accordance  with  the  provisions  of  this
Act or the rules made thereunder or fails to account for an invoice in his
books  of  account,

shall be liable to a penalty which may extend to twenty five thousand rupees.

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Penalty  for
failure  to
furnish
information
re tu rn .

123.

If a person who is required to furnish an information return under
section  150  fails  to  do  so  within  the  period  specified  in  the  notice  issued
under sub-section (3) thereof, the proper officer may direct, that such person
shall  be  liable  to  pay  a  penalty  of  one  hundred  rupees  for  each  day  of  the
period  during  which  the  failure  to  furnish  such  return  continues :

Provided  that  the  penalty  imposed  under  this  section  shall  not  exceed

five  thousand  rupees.

Fine  for
failure  to
furnish
statistics.

124.
section  151,—

If any person required to furnish any information or return under

(a)  without  reasonable  cause  fails  to  furnish  such  information  or

return as may be required under that section, or

(b) wilfully furnishes or causes to furnish any information or return

which he knows to be false,

he shall be punishable with a fine which may extend to ten thousand rupees
and in case of a continuing offence to a further fine which may extend to one
hundred  rupees  for  each  day  after  the  first  day  during  which  the  offence
continues subject to a maximum limit of twenty-five thousand rupees.

G e n e r a l
pena lty.

125. Any person,  who contravenes  any of  the provisions  of this  Act or
any  rules  made  thereunder  for  which  no  penalty  is  separately  provided  for
in  this  Act,  shall  be  liable  to  a  penalty  which  may  extend  to  twenty  five
thousand  rupees.

G e n e r a l
di sc ipl in es
related  to
pena lty.

126.

(1)  No  officer  under  this  Act  shall  impose  any  penalty  for  minor
breaches  of  tax  regulations  or  procedural  requirements  and  in  particular,
any  omission  or  mistake  in  documentation  which  is  easily  rectifiable  and
made  without  fraudulent  intent  or  gross  negligence.

Explanation.––For  the  purpose  of  this  sub-section,––

(a) a breach shall be considered a ‘minor breach’ if the amount of tax

involved  is  less  than  five  thousand  rupees ;

(b) an omission or mistake in documentation shall be considered to
be easily rectifiable if the same is an error apparent on the face of record.
(2) The  penalty  imposed  under  this  Act  shall  depend  on  the  facts  and
circumstances  of  each  case  and  shall  commensurate  with  the  degree  and
severity  of  the  breach.

(3) No  penalty  shall  be  imposed  on  any  person  without  giving  him  an

opportunity  of  being  heard.

(4) The  officer  under  this  Act  shall  while  imposing  penalty  in  an  order
for  a  breach  of  any  law,  regulation  or  procedural  requirement,  specify  the
nature  of  the  breach  and  the  applicable  law,  regulation  or  procedure  under
which the amount of penalty for the breach has been specified.

(5) When a person voluntarily discloses to an officer under this Act the
circumstances of a breach of the tax law, regulation or procedural requirement
prior to the discovery of the breach by the officer under this Act, the proper
officer may consider this fact as a mitigating factor when quantifying a penalty
for  that  person.

(6) The  provisions  of  this  section  shall  not  apply  in  such  cases  where
the  penalty  specified  under  this  Act  is  either  a  fixed  sum  or  expressed  as  a
fixed  percentage.

Power  to
i m p o s e
penalty  in
c er t a i n
ca ses.

127. Where the proper officer is of the view that a person is liable to a
penalty and the same is not covered under any proceedings under section 62
or section 63 or section 64 or section 73 or section 74 or section 129 or section
130,  he  may  issue  an  order  levying  such  penalty  after  giving  a  reasonable
opportunity  of  being  heard  to  such  person.

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128. The  Government  may,  by  notification,  waive  in  part  or  full,  any
penalty referred to in section 122 or section 123 or section 125 or any late fee
referred to in section 47 for such class of taxpayers and under such mitigating
circumstances  as  may  be  specified  therein  on  the  recommendations  of  the
Council.

83

Power  to
w a i v e
penalty  or
fee  or  both.

129.

(1)  Notwithstanding  anything  contained  in  this  Act,  where  any
person transports any goods or stores any goods while they are in transit in
contravention of the provisions of this Act or the rules made thereunder, all
such  goods  and  conveyance  used  as  a  means  of  transport  for  carrying  the
said  goods  and  documents  relating  to  such  goods  and  conveyance  shall  be
liable  to  detention  or  seizure  and  after  detention  or  seizure,  shall  be
released,—

D et e nt i on ,
s e i z u r e
a n d
release  of
goods  and
conveyances
in  transit.

(a)  on  payment  of  the  applicable  tax  and  penalty  equal  to  one
hundred  per  cent.  of  the  tax  payable  on  such  goods  and,  in  case  of
exempted goods, on payment of an amount equal to two per cent. of the
value of goods or twenty five thousand rupees, whichever is less, where
the  owner  of  the  goods  comes  forward  for  payment  of  such  tax  and
penalty ;

(b) on payment of the applicable tax and penalty equal to the fifty
per cent. of the value of the goods reduced by the tax amount paid thereon
and, in case of exempted goods, on payment of an amount equal to five
per cent. of the value of goods or twenty five thousand rupees, whichever
is less, where the owner of the goods does not come forward for payment
of such tax and penalty ;

(c) upon  furnishing  a  security  equivalent  to  the  amount  payable
under  clause  (a)  or  clause  (b)  in  such  form  and  manner  as  may  be
prescribed :

Provided  that  no  such  goods  or  conveyance  shall  be  detained  or
seized  without  serving  an  order  of  detention  or  seizure  on  the  person
transporting  the  goods.
(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis,

apply  for  detention  and  seizure  of  goods  and  conveyances.

(3) The  proper  officer  detaining  or  seizing  goods  or  conveyances  shall
issue a notice specifying the tax and penalty payable and thereafter, pass an
order  for  payment  of  tax  and  penalty  under  clause  (a)  or  clause  (b)  or
clause  (c).

(4) No  tax,  interest  or  penalty  shall  be  determined  under  sub-section

(3)  without  giving  the  person  concerned  an  opportunity  of  being  heard.

(5) On payment of amount referred in sub-section (1), all proceedings in
respect  of  the  notice  specified  in  sub-section  (3)  shall  be  deemed  to  be
concluded.

(6) Where the person transporting any goods or the owner of the goods
fails to pay the amount of tax and penalty as provided in sub-section (1) within
seven days of such detention or seizure, further proceedings shall be initiated
in  accordance  with  the  provisions  of  section  130 :

Provided  that  where  the  detained  or  seized  goods  are  perishable  or
hazardous in nature or are likely to depreciate in value with passage of time,
the said  period of seven  days may be  reduced by the  proper officer.

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Confiscation
of  goods  or
conveyances
and  levy  of
pena lty.

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130.

(1) Notwithstanding anything contained in this Act, if any person—

(i)  supplies  or  receives  any  goods  in  contravention  of  any  of  the
provisions of this Act or the rules made thereunder with intent to evade
payment of tax ; or

(ii) does not account for any goods on which he is liable to pay tax

under  this  Act ;  or

(iii) supplies any goods liable to tax under this Act without having

applied  for  registration ;  or

(iv) contravenes any of the provisions of this Act or the rules made

thereunder  with intent  to  evade  payment of  tax ;  or

(v) uses any conveyance as a means of transport for carriage of goods
in  contravention  of  the  provisions  of  this  Act  or  the  rules  made
thereunder  unless  the  owner  of  the  conveyance  proves  that  it  was  so
used  without  the  knowledge  or  connivance  of  the  owner  himself,  his
agent, if any, and the person in charge of the conveyance,

then,  all  such  goods  or  conveyances  shall  be  liable  to  confiscation  and  the
person shall be liable to penalty under section 122.

(2) Whenever  confiscation  of  any  goods  or  conveyance  is  authorised  by
this Act, the officer adjudging it shall give to the owner of the goods an option
to pay in lieu of confiscation, such fine as the said officer thinks fit :

Provided that such fine leviable shall not exceed the market value of the

goods  confiscated,  less  the  tax  chargeable  thereon :

Provided  further  that  the  aggregate  of  such  fine  and  penalty  leviable
shall not be less than the amount of penalty leviable under sub-section (1) of
section  129 :

Provided  also  that  where  any  such  conveyance  is  used  for  the  carriage
of  the  goods  or  passengers  for  hire,  the  owner  of  the  conveyance  shall  be
given  an  option  to  pay  in  lieu  of  the  confiscation  of  the  conveyance  a  fine
equal to  the tax payable on  the goods being  transported thereon.

(3) Where  any  fine  in  lieu  of  confiscation  of  goods  or  conveyance  is
imposed under sub-section (2), the owner of such goods or conveyance or the
person  referred  to  in  sub-section  (1),  shall,  in  addition,  be  liable  to  any  tax,
penalty  and  charges  payable  in respect  of  such  goods  or  conveyance.

(4) No order for confiscation of goods or conveyance or for imposition of
penalty  shall  be  issued  without  giving  the  person  an  opportunity  of  being
heard.

(5) Where  any  goods  or  conveyance  are  confiscated  under  this  Act,  the

title  of  such  goods  or  conveyance  shall  thereupon  vest  in  the  Government.

(6) The  proper  officer  adjudging  confiscation  shall  take  and  hold
possession  of  the  things  confiscated  and  every  officer  of  Police,  on  the
requisition of such proper officer, shall assist him in taking and holding such
possession.

(7) The proper officer may, after satisfying himself that the confiscated
goods  or  conveyance  are  not  required  in  any  other  proceedings  under  this
Act and after giving reasonable time not exceeding three months to pay fine
in  lieu of  confiscation,  dispose  of  such  goods  or  conveyance  and  deposit  the
sale  proceeds  thereof  with  the  Government.

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85

2  of
1974.

131. Without  prejudice  to  the  provisions  contained  in  the  Code  of
Criminal  Procedure,  1973,  no  confiscation  made  or  penalty  imposed  under
the  provisions  of  this  Act  or  the  rules  made  thereunder  shall  prevent  the
infliction  of  any  other  punishment  to  which  the  person  affected  thereby  is
liable  under  the  provisions  of  this  Act  or  under  any  other  law  for  the  time
being  in  force.

Confisca -
tion  or
penalty  not
t o
i n t e r f e r e
with  other
puni sh-
m e nt s.

P unish-
ment  for
c er t a i n
offen ces.

132.

(1)  Whoever  commits  any  of  the  following  offences,  namely :—

(a)  supplies  any  goods  or  services  or  both  without  issue  of  any
invoice,  in  violation  of  the  provisions  of  this  Act  or  the  rules  made
thereunder,  with  the  intention  to  evade  tax ;

(b) issues any invoice  or bill without supply of goods  or services or
both  in  violation  of  the  provisions  of  this  Act,  or  the  rules  made
thereunder leading to wrongful availment or utilisation of input tax credit
or refund of tax ;

(c)  avails  input  tax  credit  using  such  invoice  or  bill  referred  to  in

clause  (b) ;

(d)  collects  any  amount  as  tax  but  fails  to  pay  the  same  to  the
Government  beyond  a  period  of  three  months  from  the  date  on  which
such  payment  becomes  due ;

(e)  evades  tax,  fraudulently  avails  input  tax  credit  or  fraudulently
obtains  refund  and where  such  offence  is  not  covered under  clauses  (a)
to (d) ;

(f) falsifies or substitutes financial records or produces fake accounts
or  documents  or  furnishes  any  false  information  with  an  intention  to
evade payment of tax due under this Act ;

(g)  obstructs  or  prevents  any  officer  in  the  discharge  of  his  duties

under  this  Act ;

(h)  acquires  possession  of,  or  in  any  way  concerns  himself  in
transporting,  removing,  depositing,  keeping,  concealing,  supplying,
purchasing or in any other manner deals with, any goods which he knows
or has reasons to believe are liable to confiscation under this Act or the
rules  made  thereunder ;

(i) receives or is in any way concerned with the supply of, or in any
other manner deals with any supply of  services which he knows or has
reasons  to  believe  are  in  contravention  of  any  provisions  of  this  Act  or
the  rules  made  thereunder ;

(j)  tampers  with  or  destroys  any  material  evidence  or  documents ;
(k)  fails  to  supply  any  information  which  he  is  required  to  supply
under this Act or the rules made thereunder or (unless with a reasonable
belief, the burden of proving which shall be upon him, that the information
supplied  by  him  is true)  supplies  false  information ;  or

(l) attempts to commit, or abets the commission of any of the offences

mentioned in clauses (a) to (k) of this section,

shall be punishable––

(i) in cases where the amount of tax evaded or the amount of input
tax  credit  wrongly  availed  or  utilised  or  the  amount  of  refund  wrongly
taken  exceeds  five hundred  lakh  rupees,  with  imprisonment for  a  term
which may extend to five years and with fine ;

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(ii) in cases where the amount of tax evaded or the amount of input
tax  credit  wrongly  availed  or  utilised  or  the  amount  of  refund  wrongly
taken exceeds two hundred lakh rupees but does not exceed five hundred
lakh  rupees,  with  imprisonment  for  a  term  which  may  extend  to  three
years and with fine ;

(iii) in the case of any other offence where the amount of tax evaded
or  the  amount  of  input  tax  credit  wrongly  availed  or  utilised  or  the
amount  of  refund  wrongly  taken  exceeds  one  hundred  lakh  rupees  but
does not exceed two hundred lakh rupees, with imprisonment for a term
which may extend to one year and with fine ;

(iv) in cases where he commits or abets the commission of an offence
specified  in  clause  (f)  or  clause  (g)  or  clause  (j),  he  shall  be  punishable
with imprisonment for a  term which may extend to six  months or with
fine or with both.
(2) Where any person convicted of an offence under this section is again
convicted  of  an  offence  under  this  section,  then,  he  shall  be  punishable  for
the  second  and  for  every  subsequent  offence  with  imprisonment  for  a  term
which may extend to five years and with fine.

(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section
(1) and sub-section (2) shall, in the absence of special and adequate reasons
to the contrary to be recorded in the judgment of the Court, be for a term not
less than six months.

(4) Notwithstanding  anything  contained  in  the  Code  of  Criminal
Procedure,  1973,  all  offences  under  this  Act,  except  the  offences  referred  to
in sub-section (5) shall be non-cognizable and bailable.

2  of
1974.

(5) The offences specified in clause (a) or clause (b) or clause (c) or clause
(d) of sub-section (1) and punishable under clause (i) of that sub-section shall
be  cognizable  and  non-bailable.

(6) A  person  shall  not  be  prosecuted  for  any  offence  under  this  section

except  with  the  previous  sanction  of  the  Commissioner.

Explanation.  -  For  the  purposes  of  this  section,  the  term  “tax”  shall
include the amount of tax evaded or the amount of input tax credit wrongly
availed or utilised or refund wrongly taken under the provisions of this Act,
the Central Goods and Services Tax Act, the Integrated Goods and Services
Tax Act, and cess levied under the Goods and Services Tax (Compensation to
States)  Act.

133.(1) Where  any  person  engaged  in  connection  with  the  collection  of
statistics  under  section  151  or  compilation  or  computerisation  thereof  or  if
any  officer  of  State  tax  having  access  to  information  specified  under  sub-
section  (1)  of  section  150,  or  if  any  person  engaged  in  connection  with  the
provision  of  service  on  the  common  portal  or  the  agent  of  common  portal,
wilfully  discloses  any  information  or  the  contents  of  any  return  furnished
under  this  Act  or  rules  made  thereunder  otherwise  than  in  execution  of  his
duties under the said sections or for the purposes of prosecution for an offence
under this Act or under any other Act for the time being in force, he shall be
punishable with imprisonment for a term which may extend to six months or
with fine which may extend to twenty five thousand rupees, or with both.

(2)  Any  person—

(a)  who  is  a  Government  servant  shall  not  be  prosecuted  for  any
offence  under  this  section  except  with  the  previous  sanction  of  the
Government ;

Liability  of
o ff ic er s
and  certain
o t h e r
p e r so n s .

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87

(b) who is not a Government servant shall not be prosecuted for any
offence  under  this  section  except  with  the  previous  sanction  of  the
Commissioner.

134. No  court  shall  take  cognizance  of  any  offence  punishable  under
this  Act  or  the  rules  made  thereunder  except  with  the  previous  sanction  of
the Commissioner, and no court inferior to  that of a Magistrate of the First
Class, shall try any such offence.

C og ni za nc e
of  offences.

135.

In any prosecution for an offence under this Act which requires a
culpable mental state on the part of the accused, the court shall presume the
existence  of  such  mental  state  but  it  shall  be  a  defence  for  the  accused  to
prove the fact that he had no such mental state with respect to the act charged
as an offence in that prosecution.

P r e s u m p -
tion  of
cu lpa b le
m en ta l
state.

Explanation.—For  the  purposes  of  this  section,—

(i) the expression “culpable mental state” includes intention, motive,

knowledge of a fact, and belief in, or reason to believe, a fact ;

(ii) a fact is said to be proved only when the court believes it to exist
beyond reasonable doubt and not merely when its existence is established
by  a  preponderance  of  probability.

136. A  statement  made  and  signed  by  a  person  on  appearance  in
response  to  any  summons  issued  under  section  70  during  the  course  of  any
inquiry  or  proceedings  under  this  Act  shall  be  relevant,  for  the  purpose  of
proving,  in  any  prosecution  for  an  offence  under  this  Act,  the  truth  of  the
facts which it contains,–

R e l ev a n c y
o f
sta tem e nts
u n d e r
c er t a i n
circumstances.

(a) when the  person who made the  statement is dead or  cannot be
found, or is incapable of giving evidence, or is kept out of the way by the
adverse party, or whose presence cannot be obtained without an amount
of delay or expense which, under the circumstances of the case, the court
considers  unreasonable ;  or

(b)  when  the  person  who  made  the  statement  is  examined  as  a
witness in the case before the court and the court is of the opinion that,
having regard to the circumstances of the case, the statement should be
admitted  in  evidence  in  the  interest  of  justice.

137.

(1)  Where  an  offence  committed  by  a  person  under  this  Act  is  a
company,  every  person  who,  at  the  time  the  offence  was  committed  was  in
charge of, and was responsible to, the company for the conduct of business of
the  company,  as  well  as  the  company,  shall  be  deemed  to  be  guilty  of  the
offence and shall be liable to be proceeded against and punished accordingly.  
(2) Notwithstanding  anything  contained  in  sub-section  (1),  where  an
offence  under  this  Act  has  been  committed  by  a  company  and  it  is  proved
that the offence has been committed with the consent or connivance of, or is
attributable to any negligence on the part of, any director, manager, secretary
or  other  officer  of  the  company,  such  director,  manager,  secretary  or  other
officer shall also be deemed to be guilty of that offence and shall be liable to
be  proceeded  against  and  punished  accordingly.

(3) Where  an  offence  under  this  Act  has  been  committed  by  a  taxable
person being a partnership firm or a Limited Liability Partnership or a Hindu
Undivided Family or a trust, the partner or karta or managing trustee shall
be  deemed  to  be  guilty  of  that  offence  and  shall  be  liable  to  be  proceeded
against and punished accordingly and the provisions of sub-section (2) shall
mutatis mutandis apply to such persons.

O f f e n c e s
b y
Com panies.

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(4) Nothing contained in this section shall render any such person liable
to  any  punishment  provided  in  this  Act,  if  he  proves  that  the  offence  was
committed without his knowledge or that he had exercised all due diligence
to  prevent  the  commission  of  such  offence.

Explanation.––For  the  purposes  of  this  section,—

(i) “company” means a body corporate and includes a firm or other

association  of  individuals ;  and

(ii) “director”, in relation to a firm, means a partner in the firm.

Compounding
of  offences.

138.

(1)  Any  offence  under  this  Act  may,  either  before  or  after  the
institution of prosecution, be compounded by the Commissioner on payment,
by the person accused of the offence, to the Central Government or the State
Government, as the case may be, of such compounding amount in such manner
as may  be prescribed :

Provided  that  nothing  contained  in  this  section  shall  apply  to—

(a) a  person who  has  been  allowed to  compound  once  in respect  of
any of the offences specified in clauses (a) to (f) of sub-section (1) of section
132 and the offences specified in clause (l) which are relatable to offences
specified in clauses (a) to (f) of the said sub-section ;

(b) a  person  who  has  been  allowed to  compound  once  in  respect  of
any offence, other than those in clause (a), under this Act or under the
provisions of any State Goods and Services Tax Act or the Central Goods
and  Services  Tax  Act  or  the  Union  Territory  Goods  and  Services  Tax
Act or the Integrated Goods and Services Tax Act in respect of supplies
of  value  exceeding  one  crore  rupees ;

(c) a person who  has been accused of committing  an offence under
this Act which is also an offence under any other law for the time being
in  force ;

(d) a  person  who  has  been  convicted  for  an  offence  under  this  Act

by a court ;

(e) a person who has been accused of committing an offence specified
in  clause  (g)  or  clause  (j)  or  clause(k)  of  sub-section  (1)  of  section  132 ;
and

(f) any other  class of  persons or offences  as may  be prescribed :
Provided  further  that  any  compounding  allowed  under  the
provisions of this section shall not affect the proceedings, if any, instituted
under  any other  law :

Provided also that compounding shall be allowed only after making

payment of  tax, interest and  penalty involved in  such offences.

(2) The amount for compounding of offences under this section shall be
such  as  may  be  prescribed,  subject  to  the  minimum  amount  not  being  less
than ten thousand rupees or fifty per cent. of the tax involved, whichever is
higher, and the maximum amount not being less than thirty thousand rupees
or one hundred and fifty per cent. of the tax, whichever is higher.

(3) On payment of such compounding amount as may be determined by
the  Commissioner,  no  further  proceedings  shall  be  initiated  under  this  Act
against  the  accused  person  in  respect  of  the  same  offence  and  any  criminal
proceedings,  if  already  initiated  in  respect  of  the  said  offence,  shall  stand
abated.

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89

Mi gr a t io n
of  existing
tax  payers.

Transitional
arrangements
for  input
tax  credit.

CHAPTER  XX
TRANSITIONAL PROVISIONS

139.

(1) On and from the appointed day, every person registered under
any of the existing laws and having a valid Permanent Account Number shall
be  issued  a  certificate  of  registration  on  provisional  basis,  subject  to  such
conditions and in such form and manner as may be prescribed, which unless
replaced  by  a  final  certificate  of  registration  under  sub-section  (2),  shall  be
liable  to  be  cancelled  if  the  conditions  so  prescribed  are  not  complied  with.
(2) The  final  certificate  of  registration  shall  be  granted  in  such  form

and manner and subject to such conditions as may be prescribed.

(3) The  certificate  of  registration  issued  to  a  person  under  sub-section
(1) shall be deemed to have not been issued if the said registration is cancelled
in pursuance of an application filed by such person that he was not liable to
registration  under  section  22  or  section  24.

140.

(1)  A  registered  person,  other  than  a  person  opting  to  pay  tax
under  section  10,  shall  be  entitled  to  take,  in  his  electronic  credit  ledger,
credit of the amount of Value Added Tax, and Entry Tax, if any, carried forward
in the return relating to the period ending with the day immediately preceding
the appointed day, furnished by him under the existing law in such manner
as may  be prescribed :

Provided  that  the  registered  person  shall  not  be  allowed  to  take  credit

in  the  following  circumstances,  namely :  –

(i) where  the  said  amount  of  credit  is  not  admissible  as  input  tax

credit  under  this  Act ;  or

(ii) where  he  has  not  furnished all  the  returns  required  under  the
existing  law  for  the  period  of  six  months  immediately  preceding  the
appointed  date ;  or

(iii) where the said amount of credit relates to units not entitled to
claim  set-off  under  rule  79  of  the  Maharashtra  Value  Added  Tax
Rules, 2005 :

Provided  further  that  so  much  of  the  said  credit  as  is  attributable
to  any  claim  related  to  section  3,  sub-section  (3)  of  section  5,  section  6,
section  6A  or  sub-section  (8)  of  section  8  of  the  Central  Sales  Tax  Act,
1956  which  is  not  substantiated  in  the  manner,  and  within  the  period,
prescribed in rule 12 of the Central Sales Tax (Registration and Turnover)
Rules,  1957  shall  not  be  eligible  to  be  credited  to  the  electronic  credit
ledger :

Provided  also  that  an  amount  equivalent  to  the  credit  specified  in
the  second  proviso  shall  be  refunded  under  the  existing  law  when  the
said claims are substantiated in the manner prescribed in rule 12 of the
Central Sales Tax (Registration  and Turnover) Rules, 1957.
(2) A  registered  person,  other  than  a  person  opting  to  pay  tax  under
section  10,  shall  be  entitled  to  take,  in  his  electronic  credit  ledger,  credit  of
the unavailed input tax credit in respect of capital goods, not carried forward
in  a  return,  furnished  under  the  existing  law  by  him,  for  the  period  ending
with  the  day  immediately  preceding  the  appointed  day  in  such  manner  as
may  be  prescribed :

Provided  that  the  registered  person  shall  not  be  allowed  to  take  credit
unless the  said credit was  admissible as input  tax credit under  the existing
law and is also admissible as input tax credit under this Act.
¦ÉÉMÉ +É`ö--94-12

74  of
1956.

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Explanation.––For  the  purposes  of  this  section,  the  expression
“unavailed input tax credit” means the amount that remains after subtracting
the amount of input tax credit already availed in respect of capital goods by
the taxable person under the existing law from the aggregate amount of input
tax credit to which the said person was entitled in respect of the said capital
goods  under  the  existing  law.

(3) A  registered  person,  who  was  not  liable  to  be  registered  under  the
existing  law  or  who  was  engaged  in  the  sale  of  exempted  goods  or  tax  free
goods, by whatever name called,or goods which have suffered tax at the first
point  of  their  sale  in  the  State  and  the  subsequent  sales  of  which  are  not
subject to tax in the State under the existing law but which are liable to tax
under this Act or where the person was entitled to the credit of input tax at
the  time  of  sale  of  goods,  if  any,  shall  be  entitled  to  take,  in  his  electronic
credit ledger, credit of the value added tax and entry tax in respect of inputs
held in stock and inputs contained in semi-finished or finished goods held in
stock  on  the  appointed  day  subject  to  the  following  conditions,  namely :––

(i) such inputs or goods are used or intended to be used for making

taxable  supplies  under  this  Act ;

(ii) the said registered person is eligible for input tax credit on such

inputs  under  this  Act ;

(iii)  the  said  registered  person  is  in  possession  of  invoice  or  other
prescribed documents evidencing payment of tax under the existing law
in respect of such inputs ; and

(iv)  such  invoices  or  other  prescribed  documents  were  issued  not
earlier  than  twelve  months  immediately  preceding  the  appointed  day :
Provided that where a registered person, other than a manufacturer
or a  supplier of services, is  not in possession  of an invoice or  any other
documents  evidencing  payment  of  tax  in  respect  of  inputs,  then,  such
registered  person  shall,  subject  to  such  conditions,  limitations  and
safeguards as may be prescribed, including that the said taxable person
shall  pass  on  the  benefit  of  such  credit  by  way  of  reduced  prices  to  the
recipient, be allowed to take credit at such rate and in such manner as
may  be  prescribed.
(4) A registered person, who was engaged in the sale of taxable goods as
well  as  exempted  goods  or  tax  free  goods,  by  whatever  name  called,  under
the existing law but which are liable to tax under this Act, shall be entitled
to  take,  in  his  electronic  credit  ledger,-

(a) the amount of credit of the value added tax and entry tax, if any,
carried forward in a return furnished under  the existing law by him in
accordance  with  the  provisions  of  sub-section  (1) ;  and

(b) the amount of credit of the value added tax and entry tax, if any,
in respect of inputs held in stock and inputs contained in semi-finished
or  finished  goods  held  in  stock  on  the  appointed  day,  relating  to  such
exempted goods or tax free goods, by whatever name called, in accordance
with  the  provisions  of  sub-section  (3).
(5) A registered person shall be entitled to take, in his electronic credit
ledger,  credit  of  value  added  tax  and  entry  tax,  if  any,  in  respect  of  inputs
received  on  or  after  the  appointed  day  but  the  tax  in  respect  of  which  has
been  paid  by  the  supplier  under  the  existing  law,  subject  to  the  condition
that the invoice or any other tax paying document of the same was recorded
in the books of account of such person within a period of thirty days from the
appointed  day :

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91

Provided  that  the  period  of  thirty  days  may,  on  sufficient  cause  being
shown, be extended by the Commissioner  for a further period not exceeding
thirty  days :

Provided  further  that  the  said  registered  person  shall  furnish  a
statement, in such manner as may be prescribed, in respect of credit that has
been  taken  under  this  sub-section.

(6) A  registered  person,  who  was  either  paying  tax  at  a  fixed  rate  or
paying a fixed amount in lieu of the tax payable under the existing law shall
be  entitled  to  take,  in  his  electronic  credit  ledger,  credit  of  value  added  tax
in  respect  of  inputs  held  in  stock  and  inputs  contained  in  semi-finished  or
finished  goods  held  in  stock  on  the  appointed  day  subject  to  the  following
conditions,  namely :––

(i) such inputs or goods are used or intended to be used for making

taxable  supplies  under  this  Act ;

(ii) the said registered person is not paying tax under section 10 ;
(iii)  the  said  registered  person  is  eligible  for  input  tax  credit  on

such inputs under this Act ;

(iv)  the  said  registered  person  is  in  possession  of  invoice  or  other
prescribed documents evidencing payment of tax under the existing law
in respect  of inputs ;  and

(v)  such  invoices  or  other  prescribed  documents  were  issued  not
earlier  than  twelve  months  immediately  preceding  the  appointed  day.
(7)  The  amount  of  credit  under  sub-sections  (3),  (4)  and  (6)  shall  be

calculated in such manner as may be prescribed.

141.

(1) Where  any  inputs  received  at  a  place  of  business  had  been
despatched  as  such  or  despatched  after  being  partially  processed  to  a
jobworker for further processing, testing, repair, reconditioning or any other
purpose  in  accordance  with  the  provisions  of  existing  law  prior  to  the
appointed day and such inputs are returned to the said place on or after the
appointed day, no tax shall be payable if such inputs, after completion of the
jobwork or otherwise, are returned to the said place within six months from
the  appointed  day :

Provided  that  the  period  of  six  months  may,  on  sufficient  cause  being
shown, be extended by the Commissioner  for a further period not exceeding
two  months :

Provided further that if such inputs are not returned within the period
specified in this sub-section, the input tax credit shall be liable to be recovered
in  accordance  with  the  provisions  of  clause  (a)  of  sub-section  (8)  of  section
142.

(2) Where any semi-finished goods had been despatched from the place
of  business  to  any  other  premises  for  carrying  out  certain  manufacturing
processes  in  accordance  with  the  provisions  of  existing  law  prior  to  the
appointed  day  and  such  goods  (hereafter  in  this  sub-section  referred  to  as
“the  said  goods”)  are  returned  to  the  said  place  on  or  after  the  appointed
day, no tax shall be payable if the said goods, after undergoing manufacturing
processes  or  otherwise,  are  returned  to  the  said  place  within  six  months
from  the  appointed  day :

Provided  that  the  period  of  six  months  may,  on  sufficient  cause  being
shown, be extended by the Commissioner  for a further period not exceeding
two  months :

Provided further that if the said goods are not returned within a period
specified in this sub-section, the input tax credit shall be liable to be recovered
in  accordance  with  the  provisions  of  clause  (a)  of  sub-section  (8)  of  section
142 :

¦ÉÉMÉ +É`ö--94-12+

Transitional
p ro v is i on s
relating  to
jo b w or k .

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Provided also that the person despatching the goods may, in accordance
with the provisions of the existing law, transfer the said goods to the premises
of any registered person for the purpose of supplying therefrom on payment
of  tax  in  India  or  without  payment  of  tax  for  exports  within  the  period
specified  in  this  sub-section.

(3) Where  any  goods  had  been  despatched  from  the  place  of  business
without  payment  of  tax  for  carrying  out  tests  or  any  other  process,  to  any
other premises, whether registered or not, in accordance with the provisions
of  existing  law  prior  to  the  appointed  day  and  such  goods,  are  returned  to
the said place of business on or after the appointed day, no tax shall be payable
if the said goods, after undergoing tests or any other process, are returned to
such place within six months from the appointed day :

Provided  that  the  period  of  six  months  may,  on  sufficient  cause  being
shown, be extended by the Commissioner  for a further period not exceeding
two  months :

Provided further that if the said goods are not returned within the period
specified in this sub-section, the input tax credit shall be liable to be recovered
in  accordance  with  the  provisions  of  clause  (a)  of  sub-section  (8)  of  section
142 :

Provided also that the person despatching the goods may, in accordance
with the provisions of the existing law, transfer the said goods from the said
other  premises  on  payment  of  tax  in  India  or  without  payment  of  tax  for
exports  within  the  period  specified  in  this  sub-section.

(4) The tax under sub-sections (1), (2) and (3) shall not be payable, only
if the person despatching the goods and the jobworker declare the details of
the inputs or goods held in stock by the jobworker on behalf of the said person
on the appointed day in such form and manner and within such time as may
be  prescribed.

142.

(1) Where  any  goods  on  which  tax,  if  any,  had  been  paid  under
the existing law at the time of sale thereof, not being earlier than six months
prior to the appointed day, are returned to any place of business on or after
the  appointed  day,  the  registered  person  shall  be  eligible  for  refund  of  the
tax paid under the existing law where such goods are returned by a person,
other than a registered person, to the said place of business within a period
of six months from the appointed day and such goods are identifiable to the
satisfaction  of  the  proper  officer :

Provided that if the said goods are returned by a registered person, the

return of such goods shall be deemed to be a supply.

(2) (a)where,  in  pursuance  of  a  contract  entered  into  prior  to  the
appointed  day,  the  price  of  any  goods  is  revised  upwards  on  or  after  the
appointed day, the registered person who had sold such goods shall issue to
the  recipient  a  supplementary  invoice  or  debit  note,  containing  such
particulars  as  may  be  prescribed,  within  thirty  days  of  such  price  revision
and  for  the  purposes  of  this  Act,  such  supplementary  invoice  or  debit  note
shall  be  deemed  to  have  been  issued  in  respect  of  an  outward  supply  made
under  this  Act ;

(b) where, in pursuance of a contract entered into prior to the appointed
day,  the  price  of  any  goods  is  revised  downwards  on  or  after  the  appointed
day, the registered person who had sold such goods may issue to the recipient
a credit note, containing such particulars as may be prescribed, within thirty
days of such price revision and for the purposes of this Act such credit note
shall  be  deemed  to  have  been  issued  in  respect  of  an  outward  supply  made
under  this  Act :

Misce lla -
n e o u s
transitional
provis ions.

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93

Provided  that  the  registered  person  shall  be  allowed  to  reduce  his  tax
liability  on  account  of  issue  of  the  credit  note  only  if  the  recipient  of  the
credit note has reduced his input tax credit corresponding to such reduction
of tax liability.

(3) Every  claim  for  refund  filed  by  any  person  before,  on  or  after  the
appointed  day  for  refund  of  any  amount  of  input  tax  credit,  tax,  interest  or
any  other  amount  paid  under  the  existing  law,  shall  be  disposed  of  in
accordance  with  the  provisions  of  existing  law  and  any  amount  eventually
accruing  to  him  shall  be  refunded  to  him  in  cash  in  accordance  with  the
provisions  of  the  said  law :

Provided  that  where  any  claim  for  refund  of  the  amount  of  input  tax

credit  is  fully  or  partially  rejected,  the  amount  so  rejected  shall  lapse :

Provided further that no refund shall be allowed of any amount of input
tax credit where the balance of the said amount as on the appointed day has
been  carried  forward  under  this  Act.

(4) Every  claim  for  refund  filed  after  the  appointed  day  for  refund  of
any  tax  paid  under  the  existing  law  in  respect  of  the  goods  exported  before
or  after  the  appointed  day,  shall  be  disposed  of  in  accordance  with  the
provisions  of  the  existing  law :

Provided  that where  any  claim for  refund  of  input tax  credit  is fully  or

partially  rejected,  the  amount  so  rejected  shall  lapse :

Provided further that no refund shall be allowed of any amount of input
tax credit where the balance of the said amount as on the appointed day has
been  carried  forward  under  this  Act.

(5) Notwithstanding anything to the contrary contained in this Act, any
amount  of  input  tax  credit  reversed  prior  to  the  appointed  day  shall  not  be
admissible as input tax credit under this Act.

(6) (a) every proceeding of appeal, revision, review or reference relating
to  a  claim  for  input  tax  credit  initiated  whether  before,  on  or  after  the
appointed day under the existing law shall be disposed of in accordance with
the  provisions  of  the  existing  law,  and  any  amount  of  credit  found  to  be
admissible  to  the  claimant  shall  be  refunded  to  him  in  cash  in  accordance
with the provisions of the existing law, and the amount rejected, if any, shall
not be admissible as input tax credit under this Act :

Provided  that  no  refund  shall  be  allowed  of  any  amount  of  input  tax
credit  where  the  balance  of  the  said  amount  as  on  the  appointed  day  has
been  carried  forward  under  this  Act ;

(b) every  proceeding  of  appeal,  revision,  review  or  reference  relating  to
recovery of input tax credit initiated whether before, on or after the appointed
day  under  the  existing  law  shall  be  disposed  of  in  accordance  with  the
provisions of the existing law, and if any amount of credit becomes recoverable
as a result of such appeal, revision, review or reference, the same shall, unless
recovered under the existing law, be recovered as an arrear of tax under this
Act and the amount so recovered shall not be admissible as input tax credit
under  this  Act.

(7) (a) every proceeding of appeal, revision, review or reference relating
to any output tax liability initiated whether before, on or after the appointed
day  under  the  existing  law,  shall  be  disposed  of  in  accordance  with  the
provisions  of  the  existing  law,  and  if  any  amount  becomes  recoverable  as  a
result  of  such  appeal,  revision,  review  or  reference,  the  same  shall,  unless
recovered under the existing law, be recovered as an arrear of tax under this

94

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Act and the amount so recovered shall not be admissible as input tax credit
under  this  Act.

(b) every  proceeding  of  appeal,  revision,  review  or  reference  relating  to
any  output  tax  liability  initiated  whether  before,  on  or  after  the  appointed
day  under  the  existing  law,  shall  be  disposed  of  in  accordance  with  the
provisions of the existing law, and any amount found to be admissible to the
claimant shall be refunded to him in cash in accordance with the provisions
of the existing law and the amount rejected, if any, shall not be admissible as
input tax  credit under  this Act.

(8) (a) where in pursuance of an assessment or adjudication proceedings
instituted, whether  before, on  or after  the appointed  day under  the existing
law,  any  amount  of  tax,  interest,  fine  or  penalty  becomes  recoverable  from
the  person,  the  same  shall,  unless  recovered  under  the  existing  law,  be
recovered  as  an  arrear  of  tax  under  this  Act  and  the  amount  so  recovered
shall not be admissible as input tax credit under this Act ;

(b) where  in  pursuance  of  an  assessment  or  adjudication  proceedings
instituted, whether  before, on  or after  the appointed  day under  the existing
law,  any  amount  of  tax,  interest,  fine  or  penalty  becomes  refundable  to  the
taxable person, the same shall be refunded to him in cash under the said law,
and  the  amount  rejected,  if  any,  shall  not  be  admissible  as  input  tax  credit
under  this  Act.

(9) (a)  where  any  return,  furnished  under  the  existing  law,  is  revised
after the appointed day and if, pursuant to such revision, any amount is found
to be recoverable or any amount of input tax credit is found to be inadmissible,
the same  shall, unless recovered  under the existing  law, be recovered  as an
arrear  of  tax  under  this  Act  and  the  amount  so  recovered  shall  not  be
admissible as input tax credit under this Act ;

(b) where any return, furnished under the existing law, is revised after
the appointed day but within the time limit specified for such revision under
the existing law and if, pursuant to such revision, any amount is found to be
refundable or input tax credit is found to be admissible to any taxable person,
the  same  shall  be  refunded  to  him  in  cash  under  the  existing  law,  and  the
amount rejected, if any, shall not be admissible as input tax credit under this
Act.

(10) Save  as  otherwise  provided  in  this  Chapter,  the  goods  or  services
or  both  supplied  on  or  after  the  appointed  day  in  pursuance  of  a  contract
entered  into  prior  to  the  appointed  day  shall  be  liable  to  tax  under  the
provisions  of  this  Act.

(11) (a)  notwithstanding  anything  contained  in  section  12,  no  tax  shall
be payable on goods under this Act to the extent the tax was leviable on the
said goods under the Maharashtra Value Added Tax Act, 2002 ;

(b) notwithstanding  anything  contained  in  section  13,  no  tax  shall  be
payable on services under this Act to the extent the tax was leviable on the
said services under Chapter V of the Finance Act, 1994 ;

(c) where tax was paid on any supply, both under the Maharashtra Value
Added Tax Act, 2002 and under Chapter V of the Finance Act, 1994, tax shall
be  leviable  under  this  Act  and  the  taxable  person  shall  be  entitled  to  take
credit  of  value  added  tax  or  service  tax  paid  under  the  existing  law  to  the
extent  of  supplies  made  after  the  appointed  day  and  such  credit  shall  be
calculated in such manner as may be prescribed.

M a h .
IX  of
2005.

32  of
1994.
M a h .
IX  of
2005.
32  of
1994.

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95

(12) Where any goods sent on approval basis, not earlier than six months
before  the  appointed  day,  are  rejected  or  not  approved  by  the  buyer  and
returned to the seller on or after the appointed day, no tax shall be payable
thereon  if  such  goods  are  returned  within  six  months  from  the  appointed
day :

Provided  that  the  said  period  of  six  months  may,  on  sufficient  cause
being  shown,  be  extended  by  the  Commissioner  for  a  further  period  not
exceeding  two  months :

Provided  further  that  the  tax  shall  be  payable  by  the  person  returning
the  goods  if  such  goods  are  liable  to  tax  under  this  Act,  and  are  returned
after  the  period  specified  in  this  sub-section :

Provided also that tax shall be payable by the person who has sent the
goods on approval basis if such goods are liable to tax under this Act, and are
not  returned  within  the  period  specified  in  this  sub-section.

M a h .
IX  of
2005.

(13) Where  a  supplier  has  made  any  sale  of  goods  in  respect  of  which
tax  was  required  to  be  deducted  at  source  under  the  Maharashtra  Value
Added  Tax,  2002  and  has  also  issued  an  invoice  for  the  same  before  the
appointed day, no deduction of tax at source under section 51 shall be made
by the deductor under the said section where payment to the said supplier is
made on or after the appointed day.

(14) Where  any  goods  or  capital  goods  belonging  to  the  principal  are
lying  at  the  premises  of  the  agent  on  the  appointed  day,  the  agent  shall  be
entitled to take credit of the tax paid on such goods or capital goods subject
to  fulfilment  of  the  following  conditions :

(i) the  agent  is  a  registered taxable  person  under  this  Act ;
(ii) both the  principal and the  agent declare  the details of  stock of
goods  or  capital  goods  lying  with  such  agent  on  the  day  immediately
preceding the appointed day in such form and manner and within such
time as may be prescribed in this behalf ;

(iii) the  invoices  for  such  goods  or  capital  goods  had  been  issued
not  earlier  than  twelve  months  immediately  preceding  the  appointed
day ; and

(iv) the  principal  has  either  reversed  or  not  availed  of  the  input

tax  credit  in respect  of  such,—
(a) goods ;  or
(b) capital goods or, having availed of such credit, has reversed

the said credit, to the extent availed of by him.
Explanation.—For  the  purposes  of  this  Chapter,  the  expression
“capital  goods”  shall  have  the  same  meaning  as  assigned  to  it  in  the
Maharashtra Value Added Tax, 2002.

CHAPTER  XXI
MISCELLANEOUS

143.

(1)  A  registered  person  (hereafter  in  this  section  referred  to  as
the “principal”) may, under intimation and subject to such conditions as may
be prescribed, send any inputs or capital goods, without payment of tax, to a
jobworker for jobwork and from there subsequently send to another jobworker
and likewise, and shall,––

J o b w o r k
p r o c e d u r e .

(a)  bring  back  inputs,  after  completion  of  jobwork  or  otherwise,  or
capital  goods,  other  than  moulds  and  dies,  jigs  and  fixtures,  or  tools,
within one year and three years, respectively, of their being sent out, to
any of his place of business, without payment of tax ;

M a h .
IX  of
2005.

45

50

96

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(b) supply such inputs, after completion of jobwork or otherwise, or
capital  goods,  other  than  moulds  and  dies,  jigs  and  fixtures,  or  tools,
within  one  year  and  three  years,  respectively,  of  their  being  sent  out
from the place of business of a jobworker on payment of tax within India,
or with or without payment of tax for export, as the case may be :

Provided that the principal shall not supply the goods from the place
of business of a jobworker in accordance with the provisions of this clause
unless the said principal declares the place of business of the jobworker
as his additional place of business except in a case-

(i)  where  the  jobworker  is  registered  under  section  25 ;  or
(ii)  where  the  principal  is  engaged  in  the  supply  of  such  goods  as

may be  notified by  the Commissioner.
(2) The  responsibility  for  keeping  proper  accounts  for  the  inputs  or

capital  goods  shall  lie  with  the  principal.

(3) Where  the  inputs  sent  for  jobwork  are  not  received  back  by  the
principal  after  completion  of  jobwork  or  otherwise  in  accordance  with  the
provisions  of  clause  (a)  of  sub-section  (1)  or  are  not  supplied  from  the  place
of business of the jobworker in accordance with the provisions of clause (b) of
sub-section (1) within a period of one year of their being sent out, it shall be
deemed that such inputs had been supplied by the principal to the jobworker
on the day when the said inputs were sent out.

(4) Where  the  capital  goods,  other  than  moulds  and  dies,  jigs  and
fixtures,  or  tools,  sent  for  jobwork  are  not  received  back  by  the  principal  in
accordance  with  the  provisions  of  clause  (a)  of  sub-section  (1)  or  are  not
supplied from  the place  of business of  the jobworker  in accordance  with the
provisions  of  clause  (b)  of  sub-section  (1)  within  a  period  of  three  years  of
their  being  sent  out,  it  shall  be  deemed  that  such  capital  goods  had  been
supplied by  the principal to  the jobworker on the  day when the  said capital
goods  were  sent  out.

(5) Notwithstanding anything contained in sub-sections (1) and (2), any
waste  and  scrap  generated  during  thejob  work  may  be  supplied  by  the
jobworker  directly  from  his  place  of  business  on  payment  of  tax,  if  such
jobworker is registered, or by the principal, if the jobworker is not registered.
Explanation.—For the purposes of jobwork, input includes intermediate
goods arising from any treatment or process carried out on the inputs by the
principal  or  the  jobworker.

144. Where  any  document—

(i) is  produced  by  any  person  under  this  Act  or  any  other  law  for

the time being in force ; or

(ii) has been seized from the custody or control of any person under

this Act or any other law for the time being in force ; or

(iii) has been received from any place outside India in the course of
any  proceedings  under  this  Act  or  any  other  law  for  the  time  being  in
force,

and  such  document  is  tendered  by  the  prosecution  in  evidence  against  him
or any other person who is tried jointly with him, the court shall--

(a) unless the  contrary  is  proved  by  such  person,  presume  —

(i) the truth  of  the  contents  of  such  document ;

Presumption
as  to
d o c u m e n t s
in  certain
ca ses.

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97

(ii) that  the  signature  and  every  other  part  of  such  document
which purports to be in the handwriting of any particular person or
which the court may reasonably assume to have been signed by, or
to be in the handwriting of, any particular person, is in that person’s
handwriting,  and  in  the  case  of  a  document  executed  or  attested,
that it was executed or attested by the person by whom it purports
to  have  been  so  executed  or  attested ;
(b) admit the  document  in  evidence  notwithstanding  that  it  is  not

duly  stamped,  if  such  document  is  otherwise  admissible  in  evidence.

145.

(1)  Notwithstanding anything contained in any other law for the

time being in force, —

Admissibility
of  micro
films,
fa csim ile
copies  of
d o c u m e n t s
a n d
c o m p u t e r
p ri nt o ut s
a s
d o c u m e n t s
and  as
e v i d e n c e .

(a)  a micro  film  of  a  document  or  the  reproduction  of  the  image  or

images  embodied  in  such  micro  film  (whether  enlarged  or  not) ;  or

(b) a facsimile copy of a document ; or
(c) a statement contained in a document  and included in a printed
material  produced by  a  computer,  subject to  such  conditions  as may  be
prescribed ;  or

(d)  any  information  stored  electronically  in  any  device  or  media,

including any  hard copies  made of  such information,

shall be deemed to be a document for the purposes of this Act and the rules
made thereunder and  shall  be  admissible  in  any  proceedings thereunder,
without further proof or production of the original, as evidence of any contents
of the original or of any fact stated therein of which direct evidence would be
admissible.

(2) In any proceedings under this Act or the rules made thereunder, where
it  is  desired  to  give  a  statement  in  evidence  by  virtue  of  this  section,  a
certificate,—

(a)  identifying the  document  containing  the  statement  and

describing  the  manner  in  which  it  was  produced ;

(b) giving such particulars of any device involved in the production
of that document as may be appropriate for the purpose of showing that
the  document  was  produced  by  a  computer,

shall be evidence of any matter stated in the certificate and for the purposes
of this sub-section it shall be sufficient for a matter to be stated to the best of
the  knowledge and  belief of  the  person stating  it.

146. The  Government  may,  on  the  recommendations  of  the  Council,
notify the Common Goods and Services Tax Electronic Portal for facilitating
registration,  payment  of  tax,  furnishing  of  returns,  computation  and
settlement  of  integrated  tax,  electronic  way  bill  and  for  carrying  out  such
other functions and  for such purposes as  may be prescribed.

C o m m o n
P orta l.

¦ÉÉMÉ +É`ö--94-13

98

D e e m e d
E x p or t s .

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147. The  Government  may,  on  the  recommendations  of  the  Council,
notify  certain  supplies  of  goods  as  “deemed  exports”,  where  goods  supplied
do not leave India, and payment for such supplies is received either in Indian
rupees or in convertible foreign exchange, if such goods are manufactured in
India.

S p ec ia l
p r o c e d u r e
for  certain
p r o c es s e s .

148. The  Government  may,  on  the  recommendations  of  the  Council,
and  subject  to  such  conditions  and  safeguards  as  may  be  prescribed,  notify
certain classes of registered persons, and the special procedures to be followed
by  such  persons  including  those  with  regard  to  registration,  furnishing  of
return, payment of tax and administration of such persons.

Goods  and
s e r v i c e s
t a x
c o m p l i a n c e
rating.

149.

(1) Every registered person may be assigned a goods and services
tax  compliance  rating  score  by  the  Government  based  on  his  record  of
compliance  with  the  provisions  of  this  Act.

(2) The  goods  and  services  tax  compliance  rating  score  may  be

determined on the basis of such parameters as may be prescribed.

(3) The goods and services tax compliance rating score may be updated
at  periodic intervals  and intimated  to the  registered person  and also  placed
in the public domain in such manner as may be prescribed.

150.

(1)  Any  person,  being—

O b liga tion
to  furnish
information
re tu rn .

(a) a taxable person ; or
(b) a local authority or other public body or association ; or
(c)  any  authority  of  the  State  Government  responsible  for  the
collection  of  value  added  tax  or  sales  tax  or  State  excise  duty  or  an
authority  of  the  Central  Government  responsible  for  the  collection  of
excise  duty  or  customs  duty ;  or

(d)  an  income  tax  authority  appointed  under  the  provisions  of  the

Income-tax Act, 1961 ; or

(e)  a  banking  company  within  the  meaning  of  clause  (a)  of  section

45A of the Reserve Bank of India Act, 1934 ; or

(f)  a  State  Electricity  Board  or  an  electricity  distribution  or
transmission licensee under the Electricity Act, 2003, or any other entity
entrusted  with  such  functions  by  the  Central  Government  or  the  State
Government ;  or

(g) the Registrar or Sub-Registrar appointed under section 6 of the

Registration  Act,  1908 ;  or

(h) a Registrar within the meaning of the Companies Act, 2013 ; or

(i)  the  registering  authority  empowered  to  register  motor  vehicles

under  the Motor  Vehicles  Act, 1988 ;  or

(j) the Collector referred to in clause (c) of section 3 of the Right to
Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement  Act, 2013 ;  or

(k) the recognised stock exchange referred to in clause (f) of section

2 of the Securities Contracts (Regulation) Act, 1956 ; or

(l) a depository referred to in clause (e) of sub-section (1) of section

2 of the Depositories Act, 1996 ; or

43  of
1961.

2  of
1934.

36  of
2003.

16  of
1908.

18  of
2013.

59  of
1988.

30  of
2013.

42  of
1956.
22  of
1996.

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99

2  of
1934.

18  of
2013.

(m)  an  officer  of  the  Reserve  Bank  of  India  as  constituted  under

section 3 of the Reserve Bank of India Act, 1934 ; or

(n)  the  Goods  and  Services  Tax  Network,  a  company  registered

under the Companies Act, 2013 ; or

(o)  a person  to whom  a Unique  Identity Number  has been  granted

under sub-section (9) of section 25 ; or

(p)  any  other  person  as  may  be  specified,  on  the  recommendations

of  the Council,  by the  Government,

who  is  responsible  for  maintaining  record  of  registration  or  statement  of
accounts  or  any  periodic  return  or  document  containing  details  of  payment
of  tax  and  other  details  of  transaction  of  goods  or  services  or  both  or
transactions  related  to  a  bank  account  or  consumption  of  electricity  or
transaction  of  purchase,  sale  or  exchange  of  goods  or  property  or  right  or
interest in a property under any law for the time being in force, shall furnish
an  information  return  of  the  same  in  respect  of  such  periods,  within  such
time,  in  such  form  and  manner  and  to  such  authority  or  agency  as  may  be
prescribed.

(2) Where  the  Commissioner,  or  an  officer  authorised  by  him  in  this
behalf, considers that the information furnished in the information return is
defective,  he  may  intimate  the  defect  to  the  person  who  has  furnished  such
information return and give him an opportunity of rectifying the defect within
a period of thirty days from the date of such intimation or within such further
period which, on an application made in this behalf, the said authority may
allow  and  if  the  defect  is  not  rectified  within  the  said  period  of  thirty  days
or,  the  further period  so  allowed,  then, notwithstanding  anything  contained
in any other provisions of this Act, such information return shall be treated
as not furnished and the provisions of this Act shall apply.

(3) Where  a  person  who  is  required  to  furnish  information  return  has
not  furnished  the  same  within  the  time  specified  in  sub-section  (1)  or  sub-
section  (2),  the  said  authority  may  serve  upon  him  a  notice  requiring
furnishing  of  such  information  return  within  a  period  not  exceeding  ninety
days from the date of service of the notice and such person shall furnish the
information  return.

151.

(1) The Commissioner may, if he considers that it is necessary so
to  do,  by  notification,  direct  that  statistics  may  be  collected  relating  to  any
matter dealt with by or in connection with this Act.

Power  to
c o l l e c t
statistics.

(2) Upon such notification being issued, the Commissioner, or any person
authorised  by  him  in  this  behalf,  may  call  upon  the  concerned  persons  to
furnish  such  information  or  returns,  in  such  form  and  manner  as  may  be
prescribed,  relating  to  any  matter  in  respect  of  which  statistics  is  to  be
collected.

152.

(1)  No  information  of  any  individual  return  or  part  thereof  with
respect  to  any  matter  given  for  the  purposes  of  section  150  or  section  151
shall, without the previous consent in writing of the concerned person or his
authorised representative, be published in such manner so as to enable such
particulars  to  be  identified  as  referring  to  a  particular  person  and  no  such
information shall be used for the purpose of any proceedings under this Act.

(2) Except  for  the  purposes  of  prosecution  under  this  Act  or  any  other
law for the time being in force, no person who is not engaged in the collection
of statistics under this Act or compilation or computerisation thereof for the

¦ÉÉMÉ +É`ö--94-14

Bar  on
d i s c lo s u r e
o f
information.

100

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purposes  of  this  Act,  shall  be  permitted  to  see  or  have  access  to  any
information  or  any  individual  return  referred  to  in  section  151.

(3) Nothing  in  this  section  shall  apply  to  the  publication  of  any
information  relating to  a  class of  taxable  persons or  class  of transactions,  if
in  the  opinion  of  the  Commissioner,  it  is  desirable  in  the  public  interest  to
publish  such  information.

T a k ing
a ssista nce
from  an
e x p e r t .

153. Any  officer  not  below  the  rank  of  Assistant  Commissioner  may,
having  regard  to  the  nature  and  complexity  of  the  case  and  the  interest  of
revenue,  take  assistance  of  any  expert  at  any  stage  of  scrutiny,  inquiry,
investigation  or  any  other  proceedings  before  him.

Power  to
t a k e
sa m ples.

154. The  Commissioner  or  an  officer  authorised  by  him  may  take
samples  of  goods  from  the  possession  of  any  taxable  person,  where  he
considers  it  necessary, and  provide  a  receipt  for  any samples  so  taken.

Burden  of
p r o o f .

155. Where  any  person  claims  that  he  is  eligible  for  input  tax  credit

under this Act, the burden of proving such claim shall lie on such person.

P e r s o n s
deemed  to
be  public
servants.

156. All persons discharging functions under this Act shall be deemed
to  be  public  servants  within  the  meaning  of  section  21  of  the  Indian  Penal
Code.

45  of
1860.

P r o t e c t i o n
of  action
t a k e n
under  this
A c t .

157.

(1) No suit, prosecution or other legal proceedings shall lie against
the President, State President, Members, Officers or other employees of the
Appellate  Tribunal  or  any  other  person  authorised  by  the  said  Appellate
Tribunal  for  anything  which  is  in  good  faith  done  or  intended  to  be  done
under  this  Act  or  the  rules  made  thereunder.

(2) No suit, prosecution or other legal proceedings shall lie against any
officer appointed or authorised under this Act for anything which is done or
intended to be done in good faith under this Act or the rules made thereunder.

D i s c l o s u r e
o f
information
by  a  public
serva nt.

158.

(1)  All  particulars  contained  in  any  statement  made,  return
furnished or accounts or documents produced in accordance with this Act, or
in  any  record  of  evidence  given  in  the  course  of  any  proceedings  under  this
Act (other than proceedings before a criminal court), or in any record of any
proceedings under  this Act  shall, save  as provided  in sub-section  (3), not  be
disclosed.

(2) Notwithstanding  anything  contained  in  the  Indian  Evidence  Act,
1872,  no  court  shall,  save  as  otherwise  provided  in  sub-section  (3),  require
any officer appointed or authorised under this Act to produce before it or to
give evidence before it in respect of particulars referred to in sub-section (1).
(3) Nothing contained in this section shall apply to the disclosure of,––
(a)  any  particulars  in  respect  of  any  statement,  return,  accounts,
documents,  evidence,  affidavit  or  deposition,  for  the  purpose  of  any
prosecution under the Indian Penal Code or the Prevention of Corruption
Act, 1988, or any other law for the time being in force ; or

1  of
1872.

45  of
1860.
49  of
1988.

(b)  any  particulars  to  the  Central  Government  or  the  State
Government  or  to  any  person  acting  in  the  implementation  of  this  Act,
for the purposes of carrying out the objects of this Act ; or

(c) any particulars when such disclosure is occasioned by the lawful
exercise  under  this  Act  of  any  process  for  the  service  of  any  notice  or
recovery  of  any  demand ;  or

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101

(d)  any  particulars  to a  civil  court  in  any  suit  or  proceedings,  to
which the Government or any authority under this Act is a party, which
relates  to  any  matter  arising  out  of  any  proceedings  under  this  Act  or
under  any  other  law  for  the  time  being  in  force  authorising  any  such
authority  to  exercise  any  powers  thereunder ;  or

(e) any particulars to any officer appointed for the purpose of audit

of tax receipts or refunds of the tax imposed by this Act ; or

(f)  any  particulars  where  such  particulars  are  relevant  for  the
purposes  of  any  inquiry  into  the  conduct  of  any  officer  appointed  or
authorised  under  this  Act,  to  any  person  or  persons  appointed  as  an
inquiry officer under any law for the time being in force ; or

(g) any such particulars to an officer of the Central Government or
of any State Government, as may be necessary for the purpose of enabling
that Government to levy or realise any tax or duty ; or

(h) any particulars when such disclosure is occasioned by the lawful
exercise  by  a  public  servant  or  any  other  statutory  authority,  of  his  or
its powers under any law for the time being in force ; or

(i) any particulars relevant to any inquiry into a charge of misconduct
in  connection  with  any  proceedings  under  this  Act  against  a  practising
advocate,  a  tax  practitioner,  a  practising  cost  accountant,  a  practising
chartered  accountant,  a  practising  company  secretary  to  the  authority
empowered  to  take  disciplinary  action  against  the  members  practising
the  profession  of  a  legal  practitioner,  a  cost  accountant,  a  chartered
accountant or a company secretary, as the case may be ; or

(j) any particulars to any agency appointed for the purposes of data
entry  on  any  automated  system  or  for  the  purpose  of  operating,
upgrading  or  maintaining  any  automated  system  where  such  agency  is
contractually  bound  not  to  use  or  disclose  such  particulars  except  for
the  aforesaid  purposes ;  or

(k) any such particulars to an officer of the Government as may be
necessary for the purposes of any other law for the time being in force ;
and

(l) any information relating to any class of taxable persons or class
of transactions for publication, if, in the opinion of the Commissioner, it
is  desirable in  the  public interest,  to  publish such  information.

159.

(1) If  the  Commissioner,  or  any  other  officer  authorised  by  him
in this behalf, is of the opinion that it is necessary or expedient in the public
interest to publish the name of any person and any other particulars relating
to any proceedings or prosecution under this Act in respect of such person, it
may  cause  to be  published  such  name and  particulars  in  such manner  as  it
thinks fit.

P ub lication
o f
information
in  respect
of  persons
in  certain
ca ses.

(2) No  publication  under  this  section  shall  be  made  in  relation  to  any
penalty  imposed  under  this  Act  until  the  time  for  presenting  an  appeal  to
the  Appellate  Authority  under  section  107  has  expired  without  an  appeal
having  been  presented  or  the  appeal,  if  presented,  has  been  disposed  of.

Explanation.––In  the  case  of  firm,  company  or  other  association  of
persons,  the  names  of  the  partners  of  the  firm,  directors,  managing  agents,
secretaries  and  treasurers  or  managers  of  the  company,  or  the  members  of
the association, as the case may be, may also be published if, in the opinion of
the  Commissioner,  or  any  other  officer  authorised  by  him  in  this  behalf,
circumstances of the case justify it.

102

A ss e ss -
m e n t
proceedings,
etc.  not  to
be  invalid
on  certain
gr ou nd s.

Rectification
of  errors
a p p a r e n t
on  the  face
of  record.

Bar  on
jurisdiction
of  civil
co urt s.

Levy  of  fee.

Power  of
Government
to  make
rul es.

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160.

(1) No assessment, re-assessment, adjudication, review, revision,
appeal,  rectification,  notice,  summons  or  other  proceedings  done,  accepted,
made,  issued,  initiated,  or  purported  to  have  been  done,  accepted,  made,
issued,  initiated  in  pursuance  of  any  of  the  provisions  of  this  Act  shall  be
invalid  or  deemed  to  be  invalid  merely  by  reason  of  any  mistake,  defect  or
omission  therein,  if  such  assessment,  re-assessment,  adjudication,  review,
revision,  appeal,  rectification,  notice,  summons  or  other  proceedings  are  in
substance and effect in conformity with or according to the intents, purposes
and requirements of this Act or any existing law.

(2) The service of any notice, order or communication shall not be called
in  question,  if  the  notice,  order  or  communication,  as  the  case  may  be,  has
already  been  acted  upon  by  the  person  to  whom  it  is  issued  or  where  such
service  has  not  been  called  in  question  at  or  in  the  earlier  proceedings
commenced,  continued  or  finalised  pursuant  to  such  notice,  order  or
communication.

161. Without  prejudice  to  the  provisions  of  section  160,  and
notwithstanding anything contained in any other provisions of this Act, any
authority,  who  has  passed  or  issued  any  decision  or  order  or  notice  or
certificate  or  any  other  document,  may  rectify  any  error  which  is  apparent
on the face of record in such decision or order or notice or certificate or any
other  document,  either on  its  own  motion or  where  such  error is  brought  to
its  notice  by  any  officer  appointed  under  this  Act  or  an  officer  appointed
under  the  Central  Goods  and  Services  Tax  Act  or  by  the  affected  person
within  a  period  of  three  months  from  the  date  of  issue  of  such  decision  or
order or notice or certificate or any other document, as the case may be :

Provided  that  no  such  rectification  shall  be  done  after  a  period  of  six
months from the date of issue of such decision or order or notice or certificate
or  any  other  document :

Provided  further  that  the  said  period  of  six  months  shall  not  apply  in
such  cases  where  the  rectification  is  purely  in  the  nature  of  correction  of  a
clerical  or  arithmetical  error,  arising  from  any  accidental  slip  or  omission :
Provided also that where such rectification adversely affects any person,
the  principles  of  natural  justice  shall  be  followed  by  the  authority  carrying
out  such  rectification.

162. Save as provided in sections117 and 118, no civil court shall have
jurisdiction  to  deal  with  or  decide  any  question  arising  from  or  relating  to
anything  done  or  purported  to  be  done  under  this  Act.

163. Wherever  a  copy  of  any  order  or  document  is  to  be  provided  to
any  person  on  an  application  made  by  him  for  that  purpose,  there  shall  be
paid such fee as may be prescribed.

164.

(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.

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103

(4) Any rules made under sub-section (1) or sub-section (2) may provide
that  a  contravention  thereof  shall  be  liable  to  a  penalty  not  exceeding  ten
thousand  rupees.

165. The Government may, by notification, make regulations consistent
with  this  Act  and  the  rules  made  thereunder  to  carry  out  the  purposes  of
this  Act.

166. Every  rule  made  by  the  Government,  every  regulation  made  by
the Government 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  the
State Legislature, 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,  the  State  Legislature  agrees  in  making  any
modification in the rule or regulation or in the notification, as the case may
be,  or  the  State  Legislature  agrees  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.

Power  to
m a k e
regu la -
tions.

Laying  of
rul es,
regula tions
a n d
notifica -
tions.

167. The Commissioner may, by notification, direct that subject to such
conditions,  if  any,  as  may  be  specified  in  the  notification,  any  power
exercisable by any authority or officer under this Act may be exercisable also
by another authority or officer as may be specified in such notification.

D e le g a ti o n
of  powers.

168. The Commissioner may, if he considers it necessary or expedient
so  to  do  for  the  purpose  of  uniformity  in  the  implementation  of  this  Act,
issue  such  orders,  instructions  or  directions  to  the  State  tax  officers  as  it
may deem fit, and thereupon all such officers and all other persons employed
in  the  implementation  of  this  Act  shall  observe  and  follow  such  orders,
instructions  or  directions.

Power  to
i s s u e
instru-
ctions  or
di rect ion s.

Service  of
notice  in
c er t a i n
c i rc u m -
sta nces.

169.

(1) Any decision, order, summons, notice or other communication
under  this  Act  or  the  rules  made  thereunder  shall  be  served  by  any  one  of
the  following  methods,  namely :—-

(a) by giving or tendering it directly or by a messenger including a
courier  to  the  addressee  or  the  taxable  person  or  to  his  manager  or
authorised  representative  or  an  advocate  or  a  tax  practitioner  holding
authority  to  appear  in  the  proceedings  on  behalf  of  the  taxable  person
or to a person regularly employed by him in connection with the business,
or to any adult member of family residing with the taxable person ; or

(b) by registered post or speed post or courier with acknowledgement
due,  to  the  person  for  whom  it  is  intended  or  his  authorised
representative, if any, at his last known place of business or residence ;
or

(c)  by  sending  a  communication  to  his  e-mail  address  provided  at

the time of registration or as amended from time to time ; or
(d) by making it available on the common portal ; or
(e) by publication in a newspaper circulating in the locality in which
the  taxable  person  or  the  person  to  whom  it  is  issued  is  last  known  to
have  resided,  carried  on  business  or  personally  worked  for  gain ;  or

¦ÉÉMÉ +É`ö--94-15

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(f)  if  none  of  the  modes  aforesaid  is  practicable,  by  affixing  it  in
some conspicuous place at his last known place of business or residence
and  if  such  mode  is  not  practicable  for  any  reason,  then  by  affixing  a
copy thereof on the notice board of the office of the concerned officer or
authority  who  or  which  passed  such  decision  or  order  or  issued  such
summons  or  notice.
(2) Every  decision, order,  summons,  notice  or any  communication  shall
be  deemed  to  have  been  served  on  the  date  on  which  it  is  tendered  or
published or a copy thereof is affixed in the manner provided in sub-section
(1).

(3) When  such  decision,  order,  summons,  notice  or  any  communication
is  sent  by  registered  post  or  speed  post,  it  shall  be  deemed  to  have  been
received by the addressee at the expiry of the period normally taken by such
post  in transit  unless  the  contrary is  proved.

170. The amount of tax, interest, penalty, fine or any other sum payable,
and the amount of refund or any other sum due, under the provisions of this
Act  shall  be  rounded  off  to  the  nearest  rupee  and,  for  this  purpose,  where
such amount contains a part of a rupee consisting of paise, then, if such part
is  fifty  paise  or  more,  it  shall  be  increased  to  one  rupee  and  if  such  part  is
less than fifty paise it shall be ignored.

R o u n d i n g
off  of  tax,
e t c .

A nt i -
profiteering
m e a s ur e.

171.

(1) Any reduction in rate of tax on any supply of goods or services
or the benefit of input tax credit shall be passed on to the recipient by way of
commensurate  reduction  in  prices.

Removal  of
difficulties.

(2) The  Central  Government  may,  on  recommendations  of  the  Council,
by  notification,  constitute  an  Authority,  or  empower  an  existing  Authority
constituted  under  any  law  for  the  time  being  in  force,  to  examine  whether
input tax credits availed by any registered person or the reduction in the tax
rate  have  actually resulted  in  a  commensurate  reduction  in the  price  of  the
goods  or  services  or  both  supplied  by  him.

(3) The Authority referred to in sub-section (2) shall exercise such powers

and discharge such functions as may be prescribed.

172.

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

Provided that no such order shall be made after the expiry of a period of

three 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 the State Legislature.

R ep e a ls .

173. (1) Save as otherwise provided in this Act, on and from the date of
commencement  of  this  Act,  the  following  laws  are  hereby  repealed
(hereinafter  referred  to  as  “the  repealed  Acts”),  namely :—

(a) The Maharashtra Betting Tax Act, 1925.

(b) The Maharashtra Purchase Tax on Sugarcane Act, 1962.

VI  of
1925.

M a h .
IX  of
1962.

M a h .
X V I I I
o f
1967.
M a h .
X X I I
o f
1983.

M a h .
XLI  of
1987.

M a h .
X L I I
o f
1987.

M a h .
IV  of
2003.

M a h .
X L I I I
o f
2006.

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105

(c) The  Maharashtra Advertisements  Tax Act,  1967.

(d) The  Maharashtra  Forest  Development  (Tax  on  sale  of  Forest
Produce by Government or Forest Development Corporation) Act, 1983.

(e) The Maharashtra Tax on Luxuries Act, 1987.

(f) The  Maharashtra  Tax  on  Entry  of  Motor  Vehicles  into  Local

Areas Act, 1987.

(g) The  Maharashtra  Tax  on  the  Entry  of  Goods  into  Local  Areas

Act, 2002.

(h) The Maharashtra Tax on Lotteries Act, 2006.

(2) Every registration certificate, licence or permission, as the case may
be, granted under any of the repealed Acts or such repealed provision, shall
stand  cancelled  with  effect  from  the  appointed  day.

174. (1) The repeal of the said Acts specified in section 173 shall not,—
(a) revive anything not in force or existing at the time at which such

Savings.

repeal  takes  effect ;  or

(b)  affect  the  previous  operation  of  any  enactment  or  part  thereof,
so  repealed  and  orders  or  anything  duly  done  or  suffered  thereunder ;
or

(c) affect any right, privilege, obligation, or liability acquired, accrued

or  incurred  under  the  repealed  Acts,  orders  under  repealed  Acts ;  or

(d) affect any tax, surcharge, penalty, interest, fee or fine as are due
or may become due or any forfeiture or punishment incurred or inflicted
in  respect  of  any  offence  or  violation  committed  against  the  provisions
of  repealed  Acts ;  or

(e) affect any investigation, inquiry, audit, assessment, reassessment,
refund, determination, advance ruling, rectification and any other legal
proceedings or recovery of arrears or remedy in respect of any such tax,
surcharge, penalty, interest, fee, fine, right, privilege, obligation, liability,
forfeiture  or  punishment,  as  aforesaid,  and  any  such  investigation,
inquiry, audit, assessment, reassessment, refund, determination, advance
ruling, rectification and any other legal proceedings or recovery of arrears
or  remedy  in  respect  of  any  such  tax,  surcharge,  penalty,  interest,  fee,
fine,  interest,  right,  privilege,  obligation,  liability,  forfeiture  or
punishment, as aforesaid, may be instituted, continued or enforced, and
any  such  tax,  surcharge,  penalty,  interest,  fee,  fine,  forfeiture  or
punishment  may  be  levied  or  imposed  as  if  these  Acts  had  not  been  so
repealed ;  or

(f)  affect  any  proceedings  including  that  relating  to  an  appeal,
revision, review or reference, instituted before, on or after the appointed
day  under  the  said  repealed  Acts  or  repealed  provisions,  and  such
proceedings shall be continued under the said repealed Acts or repealed
provisions, as if this Act had not come into force ;

¦ÉÉMÉ +É`ö--94-15+

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(g)  those  laws  (including  any  earlier  law  continued  in  force  under
any  provisions  thereof),  and  all  rules,  regulations,  orders,  notifications,
forms,  certificates  and  notices,  appointments  and  delegation  of  powers
issued  under  those  laws  and  in  force  immediately  before  the  appointed
day  shall,  subject  to  the  other  provisions  of  this  Act,  in  so  far  as  they
apply,  continue  to  have  effect  after  the  appointed  day  for  the  purposes
of  the  levy,  returns,  assessment,  reassessment,  appeal,  determination,
revision,  rectification,  reference,  limitation,  production  and  inspection
of  accounts  and  documents  and  search  of  premises,  transfer  of
proceedings,  payment  and  recovery,  calculation  of  cumulative  quantum
of  benefits,  exemption  from  payment  of  tax  and  deferment  of  due  date
for  payment  of  tax,  cancellation  of  the  certificate  of  entitlement,
collection,  or  deduction  of  tax  at  source,  refund  or  set  off  of  any  tax
withholding of any refund, exemption from payment of tax, collection of
statistics, the power to make rules, the imposition of any penalty, or of
interest  or  forfeiture  of  an  sum  where  such  levy,  returns,  assessment,
re-assessment,  appeal,  determination,  revision,  rectification,  reference,
limitation, payment and recovery, calculation of cumulative quantum of
benefits, exemption from payment of tax and deferment of due date for
payment of  tax, cancellation of  the certificate of  entitlement, collection,
deduction  of  tax  at  source,  refund,  set-off,  withholding  of  any  refund
exemption,  collection  of  statistics,  the  power  to  make  rules,  limitation,
production  and  inspection  of  accounts  and  documents  and  search  of
premises,  transfer  of  proceedings,  penalty,  interest  or  forfeiture  of  any
sum  relates  to  any  period  ending  before  the  appointed  day,  or  for  any
other  purpose  whatsoever  connected  with  or  incidental  to  any  of  the
purposes  aforesaid  and  whether  or  not  the  tax,  penalty,  interest,  sum
forfeited or tax deducted at source, if any, in relation to such proceedings
is  paid before  or  after  the appointed  day.
(2)  Without  prejudice  to  the  provisions  contained  in  the  foregoing  sub-
section,  the  provisions  of  sections  7  and  25  of  the  Maharashtra  General
Clauses Act, shall apply in relation to the repeal of any of the laws referred
to in this section as if the law so repealed had been an enactment within the
meaning of section 7 of the said Act.

SCHEDULE  I
[see section  7]

ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE
WITHOUT CONSIDERATION

1. Permanent  transfer  or  disposal  of  business  assets  where  input  tax

credit has been availed on such assets.

2. Supply  of  goods  or  services  or  both  between  related  persons  or
between distinct persons as specified in section 25, when made in the course
or  furtherance  of  business :

Provided  that  gifts  not  exceeding  fifty  thousand  rupees  in  value  in  a
financial year by an employer to an employee shall not be treated as supply
of  goods  or  services  or  both.

I  of
1904.

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107

3. Supply  of  goods—

(a) by a principal to his agent where the agent undertakes to supply

such goods on behalf of the principal; or

(b) by an agent to his principal where the agent undertakes to receive

such goods on behalf of the principal.

4.

Import of services by a taxable person from a related person or from
any of his other establishments outside India, in the course or furtherance of
business.

SCHEDULE  II

[see  section  7]

ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS
OR SUPPLY OF SERVICES

1. Transfer.—(a) any transfer of the title in goods is a supply of goods;

(b) any transfer of right in goods or of undivided share in goods without

the transfer of title thereof, is a supply of services ;

(c)  any  transfer  of  title  in  goods  under  an  agreement  which  stipulates
that  property  in  goods  shall  pass  at  a  future  date  upon  payment  of  full
consideration  as  agreed,  is a  supply  of  goods.

2. Land  and  Building.—(a)  any  lease,  tenancy,  easement,  licence  to

occupy land is a supply of services;

(b)  any  lease  or  letting  out  of  the  building  including  a  commercial,
industrial or residential complex for business or commerce, either wholly or
partly, is a supply of services.

3. Treatment  or  process.—Any  treatment  or  process  which  is  applied

to  another  person’s  goods  is  a  supply  of  services.

4. Transfer  of  business  assets.—(a)  where  goods  forming  part  of  the
assets of a business are transferred or disposed of by or under the directions
of the  person carrying  on the  business so  as no  longer to  form part  of those
assets, whether or not for a consideration, such transfer or disposal is a supply
of goods by the person ;

(b) where, by or under the direction of a person carrying on a business,
goods held or used for the purposes of the business are put to any private use
or  are  used,  or  made  available  to  any  person  for  use,  for  any  purpose  other
than a purpose of the business, whether or not for a consideration, the usage
or making available of such goods is a supply of services ;

(c)  where  any  person  ceases  to  be  a  taxable  person,  any  goods  forming
part  of  the  assets  of  any  business  carried  on  by  him  shall  be  deemed  to  be
supplied  by  him  in  the  course  or  furtherance  of  his  business  immediately
before he ceases to be a taxable person, unless—

(i) the business is transferred as a going concern to another person ;

or

(ii)  the  business  is  carried  on  by  a  personal  representative  who  is

deemed to be a taxable person.

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5. Supply  of  services.—The  following  shall  be  treated  as  supply  of

service,  namely :—

(a)  renting  of  immovable  property  ;

(b)  construction  of  a  complex,  building,  civil  structure  or  a  part
thereof,  including  a  complex  or  building  intended  for  sale  to  a  buyer,
wholly or partly, except where the entire consideration has been received
after  issuance  of  completion  certificate,  where  required,  by  the
competent  authority  or  after  its  first  occupation,  whichever  is  earlier.

Explanation.––For  the  purposes  of  this  clause––

(1) the expression “competent authority” means the Government
or  any  authority  authorised  to  issue  completion  certificate  under
any law for the time being in force and in case of non-requirement
of  such  certificate  from  such  authority,  from  any  of  the  following,
namely :—

(i) an architect registered with the Council of Architecture

constituted  under  the  Architects  Act,  1972 ;  or

(ii) a chartered engineer registered with the Institution of

20  of
1972.

Engineers  (India) ;  or

(iii) a licensed surveyor of the respective local body of the
city  or  town  or  village  or  development  or  planning  authority;

(2) the expression “construction” includes additions, alterations,

replacements  or  remodelling  of  any  existing  civil  structure ;

(c)  temporary  transfer  or  permitting  the  use  or  enjoyment  of  any

intellectual  property  right ;

(d) development,  design,  programming,  customisation,  adaptation,
upgradation,  enhancement,  implementation  of  information  technology
software ;

(e) agreeing  to  the  obligation  to  refrain  from  an  act,  or  to  tolerate

an act or a situation, or to do an act ; and

(f)  transfer  of  the  right  to  use  any  goods  for  any  purpose  (whether
or not for a specified period) for cash, deferred payment or other valuable
consideration.

6. Composite  Supply.—  The  following  composite  supplies  shall  be

treated as  a supply of  services, namely :—

(a) works contract as defined in clause (119) of section 2 ; and
(b) supply, by way of or as part of any service or in any other manner
whatsoever,  of  goods,  being  food  or  any  other  article  for  human
consumption  or  any  drink  (other  than  alcoholic  liquor  for  human
consumption), where such supply or service is for cash, deferred payment
or  other  valuable  consideration.

7. Supply of Goods.— The following shall be treated as supply of goods,

namely :—

Supply  of  goods  by  any  unincorporated  association  or  body  of
persons  to  a  member  thereof  for  cash,  deferred  payment  or  other
valuable  consideration.

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109

SCHEDULE  III
[see section7]

ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED
NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES

1. Services by an employee to the employer in the course of or in relation

to  his  employment.

2. Services by any court or Tribunal established under any law for the

time  being in  force.

3.

(a) The functions performed by the Members of Parliament, Members
of State Legislature, Members of Panchayats, Members of Municipalities and
Members  of  other  local  authorities ;

(b) the duties performed by any person who holds any post in pursuance

of  the provisions  of  the Constitution  in  that capacity ;  or

(c) the duties performed by any person as a Chairperson or a Member or
a  Director  in  a  body  established  by  the  Central  Government  or  a  State
Government or local authority and who is not deemed as an employee before
the  commencement  of  this  clause.

4. Services  of  funeral,  burial,  crematorium  or  mortuary  including

transportation  of  the  deceased.

5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II,

sale  of  building.

6. Actionable  claims, other  than lottery,  betting and  gambling.

Explanation.—For the purposes of paragraph 2, the term “court” includes

District  Court,  High  Court  and  Supreme  Court.

ON  BEHALF  OF  GOVERNMENT  PRINTING,  STATIONERY  AND  PUBLICATION,  PRINTED  AND  PUBLISHED  BY    SHRI  PARSHURAM  JAGANNATH  GOSAVI,  PRINTED

AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004 AND PUBLISHED AT DIRECTORATE OF GOVERNMENT PRINTING,

STATIONERY  AND  PUBLICATION,  21-A,  NETAJI  SUBHASH ROAD,  CHARNI  ROAD,  MUMBAI  400  004,  EDITOR  :  SHRI  PARSHURAM  JAGANNATH  GOSAVI.

