Chapter III LEVY AND COLLECTION OF TAX

1. (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; [(aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. Explanation.—For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, Tribunal or Authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;]20
   • (b) import of services for a consideration whether or not in the course or furtherance of business;[and]2!
   • (c) the activities specified in Schedule I, made or agreed to be made without a consideration; [***]22
   • (d) [= [(1A) where certain activities or transactions, constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.]24
2. (2) Notwithstanding anything contained in sub-section (1),— 20, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2021 (Bihar Act no. 16 of 2021) vide Notification No. 673 Dated 09th August, 2021 and shall be deemed to have been inserted w.e.f. 01 July, 2017. 21, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018 w.e.f. 01 July, 2017. 22, The word "and" omitted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10t» December, 2018 w.e.f. 01 July, 2017. 23, Omitted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018 w.e.f. 01 July, omission the clause may reads as under :-
   • (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. 24, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018 w.e.f. 01 July, 2017. i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (& & & 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 18
   • (a) activities or transactions specified in Schedule III; or
   • (b) such activities or transactions under taken 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. (8) Subject to the provisions of [sub-sections (1), (1A) and (2)]%5, 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.

²⁰¹⁷ Prior to

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

1. (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
2. (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.

1. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the Bihar 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, [and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption]26 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. (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. (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. 25, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018 w.e.f. 01 July, 2017. 26: Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no. 22 of 2024) vide Notification No. 1160 Dated 09th December, 2024.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 19 [(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.".]27
4. (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 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.

1. (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 under sub- section (1) of section 9, an amount of tax calculated at such rate]? as may be prescribed, but not exceeding,-
   • (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: 27, Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, reads as under :- "(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." 28, Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018 for "in lieu of the tax payable by him, an amount calculated at such rate".
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 20 Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding [one crore and fifty lakh rupees]??, as may be recommended by the Council. [PROVIDED FURTHER that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent, of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher.]3° [Explanation.—For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State. |3!
2. (2) The registered person shall be eligible to opt under sub-section (1), if— [(a) save as provided in sub-section (1), he is not engaged in the supply of services|32;
   • (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act [or services|?3;
   • (c) he is not engaged in making any inter-State outward supplies of goods [or services|34;
   • (d) he is not engaged in making any supply of [***]35 [services]|3¢ through an electronic commerce operator who is required to collect tax at source under section 52 ; [***]37 29, Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018 for "one crore rupees". 30, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018. 31, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019. 32, Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, reads as under :- "(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II"; 33, Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2020 (Bihar Act no. 09 of 2020) vide Notification No. 479 Dated 10th August, 202. 34, Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2020 (Bihar Act no. 09 of 2020) vide Notification No. 479 Dated 10th August, 2020 w.e.f. 01 January, 2021. 35, Omitted the words "goods or" by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25t: July, 2023. 36, Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2020 (Bihar Act no. 09 of 2020) vide Notification No. 479 Dated 10th August, 2020 w.e.f. 01 January, 2021. 37. The word "and" omitted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12t» December, 2019. i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (& £5 led by | ih h | k Publi haziabad £5 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 21
   • (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the [Council; and]38: [() he is neither a casual taxable person nor a non-resident taxable person:|39 [(24) 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, not eligible to opt to pay tax under sub-section (I) and sub-section (2), 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 under sub- section (I) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding three percent of the turnover in State, if he is not—
   • (a) engaged in making any supply of goods or services which are not leviable to tax under this Act;
   • (b) engaged in making any inter-State outward supplies of goods or services; (0 engaged in making any supply of [***]40 services through an electronic commerce operator who is required to collect tax at source under section 52;
   • (d) a manufacturer of such goods or supplier of such services as may be notified by the Government on the recommendations of the Council; and
   • (e) a casual taxable person or a non-resident taxable person: Provided that where more than one registered person are having the same Permanent Account Number issued under the Income-tax Act, 196141, the registered person shall not be eligible to opt for the scheme under this sub- section unless all such registered persons opt to pay tax under this sub- section. ]42 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
3. (1) unless all such registered persons opt to pay tax under that sub-section. 38 , Substituted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019. 39, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019. “* The Words "goods or" omitted by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25t July, 2023. 41, 43 of 1961. 42, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 22
4. (3) The option availed of by a registered person under sub-section (1) [or sub- section (24), as the case may be,]*3 shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub-section (1) [or sub-section (24), as the case may be,]**.
5. (4) A taxable person to whom the provisions of subsection (1) [or, as the case may be, sub-section (2A4)]*5 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.
6. (5) If the proper officer has reasons to believe that a taxable person has paid tax under sub-section (1) [or sub-section (24), as the case may be,|*¢ 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 [or section 74A]*7 shall, mutatis mutandis, apply for determination of tax and penalty. [Explanation 1.—For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression “aggregate turnover” shall include the value of supplies made by such person to the 1st day of April of a financial year up to the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount. Explanation 2.—For the purposes of determining the tax payable by a person under this section, the expression “turnover in State or turnover in Union territory” shall not include the value of following supplies, namely: — () supplies to the first day of April of a financial year up to the date when such person becomes liable for registration under this Act; and
   • (i) exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.’.]48

²⁰¹⁸ Prior to substitution clause

²⁰¹⁸ Prior to substitution clause

1. (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 43, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019 44, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019. 45, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019. 46, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019. “Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no. 22 of 2024) vide Notification No. 1160 Dated 09th December, 2024. 48, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 23 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. (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. (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 maybe.
4. (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. [11A. Power not to recover Goods and Services Tax not levied or short levied as a result of General Practice.-- Notwithstanding anything contained in this Act, if the Government is satisfied that—
   • (a) a practice was, or is, generally prevalent regarding levy of State tax (including non-levy thereof) on any supply of goods or services or both; and
   • (b) such supplies were, or are, liable to,-
     • (i) State tax, in cases where according to the said practice, State tax was not, or is not being, levied, or
     • (ii) a higher amount of State tax than what was, or is being, levied, in accordance with the said practice, the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the State tax payable on such supplies, or, as the case may be, the State tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the State tax was not, or is not being
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 24 levied, or was, or is being, short-levied, in accordance with the said practice.".]49 49: Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no. 22 of 2024) vide Notification No. 1160 Dated 09th December, 2024.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 25 CHAPTER-IV TIME AND VALUE OF SUPPLY

1. (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. (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 [***]50 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. 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. (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 there of 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. [***]51 50, The word “sub-section (1) of’ Omitted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018. 2025) vide Notification No. 1338 Dated 12th August, under:
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 26
4. (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.
5. (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.

⁵¹ Omitted by The Bihar Goods and Services Tax (Amendment) Act, 2025 (Bihar Act no. 07 of

²⁰²⁵ Prior to omission sub-clause read as

1. (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. (2) The time of supply of services shall be the earliest of the following dates, namely:—
   • (a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under [***]52 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 [***]53 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: Providedthatwherethesupplieroftaxableservicereceivesanamountuptoone 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 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
3. (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. 52, The word “sub-section (2) of” Omitted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10 December, 2018. 53, The word “sub-section (2) of’ Omitted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December, 2018.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 27 on which the payment is credited to his bank account, whichever is earlier.
4. (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, which ever 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, in cases where invoice is required to be issued by the supplier; or]54 [(c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient;]55 Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) [or clause (c)]5¢, 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. [¥*+]s7
5. (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. (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 Amendment) Act, 2024 (Bihar Act no. 22 of 2024) vide Notification No. 1160 Dated 09th December, 2024. 22 of 2024) vide Notification No. 1160 Dated 09th December, 2024. 22 of 2024) vide Notification No. 1160 Dated 09th December, 2024. 2025) vide Notification No. 1338 Dated 12th August, under:
7. (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.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 28 consideration shall be the date on which the supplier receives such addition in value.

⁵⁴ Substituted the words "by the supplier:" by The Bihar Goods and Services Tax (Second

⁵⁵ Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no.

⁵⁶ Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no.

⁵⁷ Omitted by The Bihar Goods and Services Tax (Amendment) Act, 2025 (Bihar Act no. 07 of

²⁰²⁵ Prior to omission sub-clause read as

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: —

1. (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 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;
2. (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.

1. (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.
2. (2) The value of supply shall include-
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 29
   • (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. 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. (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. (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. (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;
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     • (iv) any person directly or indirectly owns, controls or holds twenty- five percent. 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.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 31