Chapter V INPUT TAX CREDIT

1. (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.
2. (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; [(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;]58
   • (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 or, as the case may be, services-
     • (i) 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;
     • (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person.]s%; [(ba) the details of input tax credit in respect of the said supply communicated to such registered person under section 38 has not been restricted.]69 S58, 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. 14 of 2018) vide Notification No. 1039 Dated 10t December, explanation reads as under :- "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."; ©60- Inserted by the The Bihar Goods and Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2nd January, 2023.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 32
   • (c) subject to the provisions of [section 41 [***]61]62, 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 been titled 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 [paid by him along with interest payable under section 50]¢3 in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him [to the supplier|®* of the amount towards the value of supply of goods or services or both along with tax payable thereon.
3. (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. (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 [thirtieth day of November]5 following the end of financial year to which such invoice or [***]56 debit note pertains or furnishing of the relevant annual return, whichever is earlier. ['(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered 61. The Words "or section 43A" omitted by The Bihar Goods and Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2nd January, 2023. 62, 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 "Section 41"; . Substituted by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25th July, 2023 for the words "added to his output tax liability, along with interest thereon," Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25th July, 2023. month of September” by the The Bihar Goods and Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2nd January, 2023. 66, The words "invoice relating to such” Omitted 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.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 33 person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021.
5. (6) Where registration of a registered person is cancelled under section 29 and subsequently the cancellation of registration is revoked by any order, either under section 30 or pursuant to any order made by the Appellate Authority or the Appellate Tribunal or court and where availment of input tax credit in respect of an invoice or debit note was not restricted under sub- section (4) on the date of order of cancellation of registration, the said person shall be entitled to take the input tax credit in respect of such invoice or debit note for supply of goods or services or both, in a return under section 39,-
   • (i) filed up to thirtieth day of November following the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier; or
   • (ii) for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, where such return is filed within thirty days from the date of order of revocation of cancellation of registration, whichever is later.".]67

⁵⁹ Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no.

²⁰¹⁸ Prior to substitution

⁶⁵ Substituted for the Words "due date of furnishing of the return under section 39 for the

1. (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.
2. (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 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. (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. [EXPLANATION.-For the purposes of this sub-section, the expression "value of exempt supply" shall not include the value of activities or transactions specified in Schedule III, [except,-
   • (i) the value of activities or transactions specified in paragraph 5 of the said Schedule; and
   • (ii) the value of such activities or transactions as may be prescribed in respect of clause (a) of paragraph 8 of the said Schedule.|68.]69; 22 of 2024) vide Notification No. 1160 Dated 09th December, 2024 w.e.f. 01st July, 2016. 68, Substituted for the Words "except those specified in paragraph 5 of the said Schedule" by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25th July, 2023.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 34
4. (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 per cent. 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. (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:- [(@) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-
   • (A) further supply of such motor vehicles; or
   • (B) transportation of passengers; or
   • (C) imparting training on driving such motor vehicles;
   • (aa) vessels and aircraft except when they are used-
     • (i) for making the following taxable supplies, namely:-
   • (A) further supply of such vessels or aircraft; or
   • (B) transportation of passengers; or
   • (C) imparting training on navigating such vessels; or
   • (D) imparting training on flying such aircraft;
     • (ii) for transportation of goods:
   • (ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicle, vessels or aircraft referred to in clause (a) or clause (aa): PROVIDED that the input tax credit in respect of such services shall be available-
     • (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;
     • (ii) where received by a taxable person engaged-
     • (I) in the manufacture of such motor vehicles, vessels or aircraft; or 69, 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.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 35
     • (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
   • (b) the following supply of goods or services or both-
     • (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause
   • (aa) except when used for the purposes specified therein, life insurance and health insurance: PROVIDED that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both 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; and
     • (iii) travel benefits extended to employees on vacation such as leave or home travel concession: PROVIDED that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.]70 70, Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10th December,
   • (a) and (b) reads as under :-
   • (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.
     • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 36
   • (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 and machinery]”!) on his own account including when such goods or services or both are used in the course or furtherance of business. Explanation. For the purposes of clauses (c) and (d), the expression "construction" includes re-construction, renovation, addition so alterations or repairs, to the extent of capitalisation, to the said immovable property; [Explanation2. For the purposes of clause (d), it is hereby clarified that notwithstanding anything to the contrary contained in any judgment, decree or order of any court, tribunal, or other authority, any reference to “plant or machinery” shall be construed and shall always be deemed to have been construed as a reference to “plant and machinery]72
   • (e) goods or services or both on which tax has been paid under section 10;
   • (f) goods or services or both received by a non-resident taxable person except on goods imported by him; [(fa) goods or services or both received by a taxable person, which are used or intended to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013]73
6. (8) 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 [section 74 in respect of any period up to Financial Year 2023-24]74.
7. (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 (Amendment) Act, 2025 (Bihar Act no. 07 of 2025) vide Notification No. 1338 Dated 12th August, 2025 w.e.f. 01.07.2017. (Amendment) Act, 2025 (Bihar Act no. 07 of 2025) vide Notification No. 1338 Dated 12th August, 2025 w.e.f. 01.07.2017. 2023) vide Notification No. 604 Dated 25t July, 2023. 74, Substituted the words "sections 74, 129 and 130" by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no. 22 of 2024) vide Notification No. 1160 Dated 09t» 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 S37 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
   • (ili) pipelines laid outside the factory premises.

⁶⁷ Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no.

²⁰¹⁸ Prior to substitution Clause

⁷¹ Substituted for the words "plant or machinery" by The Bihar Goods and Services Tax

⁷² Inserted for the words "plant or machinery” by The Bihar Goods and Services Tax

⁷³ Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of

1. (1) Subject to such conditions and restrictions as may be prescribed-
   • (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;
   • (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. (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. (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,
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 38 demerged, amalgamated, leased or transferred business in such manner as may be prescribed.
4. (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. (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. (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 section15, 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.

for job work.—

1. (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 jobwork.
2. (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 job worker for job work without being first brought to his place of business.
3. (8) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise or are not supplied from the place of business of the job worker 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 job worker on the day when the said inputs were sent out: Provided that where the inputs are sent directly to a job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker.
4. (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 job worker for jobwork.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 39
5. (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 job worker for job work without being first brought to his place of business.
6. (6) Where the capital goods sent for job work 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 job worker on the day when the said capital goods were sent out: Provided that where the capital goods are sent directly to a job worker, the period of three years shall be counted from the date of receipt of capital goods by the job worker.
7. (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 job worker for job work. Explanation.- For the purpose of this section, "principal" means the person referred to in section 143. [20. Manner of distribution of credit by Input Service Distributor.
8. (1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub- section (3) or sub-section (4) of section 9 [of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act, 2017]75, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.
9. (2) The Input Service Distributor shall distribute the credit of State tax or integrated tax charged on invoices received by him, including the credit of State or integrated tax in respect of services subject to levy of tax under sub- section (3) or sub-section (4) of section 9 [of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act, 2017]76 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed.
10. (3) The credit of State tax shall be distributed as State tax or integrated tax and integrated tax as integrated tax or State tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.".]?7 (Amendment) Act, 2025 (Bihar Act no. 07 of 2025) vide Notification No. 1338 Dated 12t August, 2025 w.e.f. 01.04.2025. (Amendment) Act, 2025 (Bihar Act no. 07 of 2025) vide Notification No. 1338 Dated 12t August, 2025 w.e.f. 01.04.2025. 77 Substituted by The Bihar Goods and Services Tax (Amendment) Act, 2024 (Bihar Act no. 15 of 2024) vide Notification No. 736 Dated 6th August, as 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 40

⁷⁵ Inserted for the words "plant or machinery” by The Bihar Goods and Services Tax

⁷⁶ Inserted for the words "plant or machinery’ by The Bihar Goods and Services Tax

²⁰²⁴ Prior to substitution Section reads

1. (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. (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 proration the basis of the turn over in a State or turn over 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 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 credits 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; () 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 [under entries 84 and 92A]" of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule. *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 "under entry 84";

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 [or section 74A]78, as the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered. 20. Manner of distribution of credit by Input Service Distributor.—

1. (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. (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 proration the basis of the turn over in a State or turn over 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 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 credits 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; () 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 [under entries 84 and 92A]" of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule. *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 "under entry 84"; 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 41 CHAPTER - VI REGISTRATION

⁷⁸ Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2024 (Bihar Act no.

1. (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. [PROVIDED FURTHER that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover.|7® [Provided also that the Government may, on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified. Explanation.—For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in 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.]s0
2. (2) Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day.
3. (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. (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 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. 79, 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. 80, 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 42 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 job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;
   • (ili) The expression "special category States" shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the

Persons not liable for registration.—

1. (1) The following persons shall not be liable to registration, namely:-
   • (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) Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24, the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, specify the category of persons who may be exempted from obtaining registration under this Act.]52

Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,-

1. (i) persons making any inter-State taxable supply;
2. (ii) casual taxable persons making taxable supply;
3. (iii) persons who are required to pay tax under reverse charge;
4. (iv) person who are required to pay tax under sub-section (5) of section 9;
5. (v) non-resident taxable persons making taxable supply; 81, Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of 2018) vide Notification No. 1039 Dated 10** December, 2018. 82 . Substituted by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25th July, 2023 w.e.f. 1st of July substitution clause reads as under :-

²⁰¹⁷ Prior to

1. (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.
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   • (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 [who is required to collect tax at source under section 52]83;
   • (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; [***]84 [(xia) every person supplying online money gaming from a place outside India to a person in India; ands
   • (xii) such other person or class of persons as may be notified by the

Procedure for registration.—

1. (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. [PROVIDED FURTHER that a person having a unit, as defined in the Special economic Zones Act, 2005 (Act No. 28 of 2005), in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the State.]86 Explanation.—Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State where the nearest point of the appropriate baseline is located. 83, 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. 84. The Word "and" Omitted by The Bihar Goods and Services Tax (Second Amendment) Act, 2023 (Bihar Act no. 16 of 2023) vide Notification No. 968 Dated 17» November, 2023. 5, Inserted by The Bihar Goods and Services Tax (Second Amendment) Act, 2023 (Bihar Act no. 16 of 2023) vide Notification No. 968 Dated 17th November, 2023. 86, 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.
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2. (2) A person seeking registration under this Act shall be granted a single registration: [PROVIDED that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.]87
3. (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. (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. (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. (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: [(64) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed: Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe: Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions of this Act shall apply as if such person does not have a registration. (6B) On and from the date of notification, every individual shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify in the said notification: Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification. 87, 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 :- 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.
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 45
7. (60) On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such manner, as the Government may, on the recommendations of the Council, specify in the said notification: Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification. (6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or part thereof, as the Government may, on the recommendations of the Council, specify by notification. Explanation.—For the purposes of this section, the expression “Aadhaar number” shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 201688.]89 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.
8. (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.
9. (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.
10. (9) Notwithstanding anything contained in sub-section (1),—
    • (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
    • (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. 88,18 of 2016 89, 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.
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11. (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.
12. (11) A certificate of registration shall be issued in such form and with effect from such date as may be prescribed.
13. (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.

²⁰¹⁸ Prior to substitution proviso

1. (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 section25.
2. (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.

taxable person.—

1. (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. (2) A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under sub-section(1l) 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. (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.

1. (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.
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2. (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. (3) Any rejection or approval of amendments under the Central Goods and

Cancellation [or suspension]90 of registration-

1. (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 is no longer liable to be registered under section 22 or Section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of Section 25.]%! [PROVIDED that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.]?2
2. (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 90, 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. 91, Substituted vide The Bihar Goods and Services Tax (Second Amendment) Act, 2020 (Bihar Act no. 09 of 2020) vide Notification No. 479 Dated 10th August, clause reads as under :-
   • (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. 92, 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.
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   • (b) a person paying tax under section 10 has not furnished [the return for a financial year beyond three months from the due date of furnishing the said return]93; or
   • (c) any registered person, other than a person specified in clause (b), has not furnished returns for [such continuous tax period as may be prescribed]94; or
   • (d) any person who has taken voluntary registration under sub- section
3. (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. [PROVIDED FURTHER, that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.]?s
4. (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.
5. (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.
6. (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 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 incase 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 section15, whichever is higher.
7. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. 93, Substituted for the Words "returns for three consecutive tax periods" by The Bihar Goods and Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2nd January, 2023. Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2nd January, 2023. 95, 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.
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²⁰²⁰ Prior to substitution

⁹⁴ Substituted for the Words " a continuous period of six months" by the The Bihar Goods and

1. (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 [such manner, within such time and subject to such conditions and restrictions, as may be prescribed]%. [***]o7
2. (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. [Provided further that such revocation of cancellation of registration shall be subject to such conditions and restrictions, as may be prescribed.|9
3. (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. 96 , Substituted by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25th July, 2023 for the words "prescribed manner within thirty days from the date of service of the cancellation order". 97 . The proviso omitted by The Bihar Goods and Services Tax (Amendment) Act, 2023 (Bihar Act no. 12 of 2023) vide Notification No. 604 Dated 25% July, 2023. Before omission the proviso reads as under : [Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended, -
   • (a) by the Joint Commissioner (Executive), for a period not exceeding thirty days;
   • (b) by the Additional Commissioner Grade-1, for a further period not exceeding thirty days, beyond the period specified in clause (a).]* *Substituted by The Bihar Goods and Services Tax (Second Amendment) Act, 2020 (Bihar Act no. 09 of 2020) vide Notification No. 479 Dated 10th August, proviso reads as under : Provided that the registered person who was served notice under sub-section (2) of section 29 in the manner as provided in clause (c) or clause (d) of sub-section (1) of section 169 and who could not reply to the said notice, thereby resulting in cancellation of his registration certificate and is hence unable to file application for revocation of cancellation of registration under sub- section (1) of section 30 of the Act, against such order passed up to 31.03.2019, shall be allowed to file application for revocation of cancellation of the registration not later than 22.07.2019.** **Inserted by The Bihar Goods and Services Tax (Fifth Removal of Difficulties) Order, 2019) vide Notification No. 600 Dated 8th May, 2019. 98 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 50 CHAPTER-VII TAX INVOICE,CREDIT AND DEBIT NOTES

²⁰²⁰ Prior to substitution the

1. (1) A registered person supplying taxable goods shall, before or at the time of,-
   • (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, with in such time and in such manner as may be prescribed.
2. (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,-
   • (a) specify the categories of services or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed:
   • (b) subject to the condition mentioned therein, specify the categories of services in respect of which-
     • (i) any other document issued in relation to the supply shall be deemed to be a tax invoice; or
     • (ii) tax invoice may not be issued.]??
3. (8) 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; 99, Substituted vide The Bihar Goods and Services Tax (Second Amendment) Act, 2020 (Bihar Act no. 09 of 2020) vide Notification No. 479 Dated 10th August, clause reads as under :- 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.
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   • (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 [, within the period as may be prescribed, | 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. [Explanation.- For the purposes of clause (f), the expression "supplier who is not registered" shall include the supplier who is registered solely for the purpose of deduction of tax under section 51.".]101
4. (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. (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; 100, 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. 101, 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.
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   • (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. (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.
7. (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. [81A. Facility of digital payment to recipient. The Government may, on the recommendations of the Council, prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the recipient of supply of goods or services or both made by him and give option to such recipient to make payment accordingly, in such manner and subject to such conditions and restrictions, as may be prescribed. 102

²⁰²⁰ Prior to substitution

1. (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. (2) No registered person shall collect tax except in accordance with the provisions of this Act or the rules made thereunder.

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.

1. (1) [Where one or more tax invoices have]!% 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 102, 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. 103, 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 "Where a tax invoice has".
   • (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 53 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 [one or more credit notes for supplies made in a financial year]!** containing such particulars as may be prescribed.
2. (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 [the thirtieth day of November]'95 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—
   • (i) input tax credit as is attributable to such a credit note, if availed, has not been reversed by the recipient, where such recipient is a registered person; or
   • (ii) incidence of tax on such supply has been passed on to any other person, in other cases.|106
3. (3) [Where one or more tax invoices have]'97 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 [one or more debit notes for supplies made in a financial year|108 containing such particulars as may be prescribed.
4. (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. 104, 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 "a credit note". 105, Substituted for the Word "September' by the The Bihar Goods and Services Tax (Amendment) Act, 2022 (Bihar Act no. 01 of 2023) vide Notification No. 03 Dated 2rd January, 2023.

²⁰²⁵ Prior to substitution proviso read

of 2025) vide Notification No. 1338 Dated 12th August, as under: 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 onto any other person. 107, 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 "Where a tax invoice has". 108, 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 "a debit note".

1. (i) Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (i) 2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 54