The Gujarat Value Added Tax Act, 2003

1. (1) This Act may be called the Gujarat Value Added Tax Act, 2003.
2. (2) It extends to the whole of the State of Gujarat.
3. (3) This section shall come into force at once and the remaining provisions of this Act shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

In this Act, unless the context otherwise requires,-

1. (3) “appointed day” means the date on which the remaining provisions of this Act shall come into force under sub-section
2. (3) of section 1;
3. (4) “business” includes –
   • (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit or gain and whether or not any profit or gain accrues from such trade, commerce, manufacture, adventure or concern; and
   • (ii) any transaction of buying, selling or supplying raw materials, processing materials, consumable stores, waste products or Such other goods which is ancillary or incidental to or resulting from such trade, commerce, manufacture, adventure or concern;
4. (6) “Central Act” means the Central Sales Tax Act, 1956;
5. (7) “commission agent” means a dealer who bonafidly buys or sells, for an agreed commission, any goods on behalf of principals;
6. (8) “Commissioner” means the person appointed to be the Commissioner of Commercial Tax for the purposes of this Act;
7. (10) “dealer” means any person who, for the purpose of or consequential to his engagement in or, in connection with or incidental to or in the course of his business buys, sells, manufactures, makes supplies or distributes goods, directly or otherwise, whether for cash or deferred payment, or for commission, remuneration or otherwise and includes,-
   • (a) the Central Government or a State Government or any local authority such as municipality or municipal corporation or panchayat, a statutory authority, a company, a partnership firm, a Hindu Undivided Family or any society, club, association or body, incorporated or not, of persons which carries on business;
   • (b) a casual dealer, that is to say, a person who whether as principal, agent or in any other capacity, undertakes occasional transaction of a business nature in any exhibition-cum-sale or auction or otherwise in the State, whether for cash, deferred payment, commission, remuneration or other valuable consideration;
   • (c) an auctioneer, who sells or auctions goods belonging to any principal whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of principal;
   • (d) a factor, broker, commission agent, del credere agent or an auctioneer or any mercantile agent, by whatever name called, who carries on business on behalf of any principal whether disclosed or not;
   • (e) any person who transfers, otherwise than in pursuance of a contract, property in any goods for cash, deferred payment or other valuable consideration;
   • (f) any person who transfers property in goods (whether as goods or in some other form) involved in the execution of a works contract;
   • (g) any person who delivers goods on hire purchase or any system of payment by installments;
   • (h) any person who transfers the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; and
     • (i) any person who supplies, by way of or as part of any service or in any other manner whatsoever, goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration. Explanation.--
     • (i) A society (including a co-operative society), club or firm or an association, which, whether or not in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, from or to its members or other persons for cash, deferred payment, commission, remuneration or other valuable consideration, shall be deemed to be dealer for the purposes of this Act.
     • (ii) The Central Government or a State Government or a local authority or railway administration or port trusts or a statutory body, which, whether or not in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, for cash, deferred payment, commission, remuneration or other valuable consideration, shall be deemed to be dealer for the purposes of this Act.
     • (iii) Any person or body, which disposes of any goods including unclaimed, confiscated, unserviceable, scrap, surplus, old, obsolete, discarded, waste or surplus product or goods, whether by auction or otherwise, directly or through an agent, for cash deferred payment, commission, remuneration or other valuable consideration, shall be deemed to be dealer for the purposes of this Act.
8. (12) “earlier law” means any of the following laws, that is to say:—
   • (i) the Bombay Sales of Motor Spirit Taxation Act, 1958,
   • (ii) the Gujarat Sales Tax Act, 1969, or
   • (iii) the Gujarat Purchase Tax on Sugarcane Act, 1989, as amended from time to time and includes enactments which have validated anything done or omitted to be done under these laws;
9. (13) “goods” means goods as covered under entry 54 of List II of the Seventh Schedule to the Constitution of India; (13A) “HSN code” means harmonized system of nomenclature code assigned to the goods specified in the Schedules;
10. (14) “manufacture” with its grammatical variations and cognate expressions means includes producing, making, extracting, collecting, altering, ornamenting, finishing, assembling or otherwise processing, treating or adapting any goods; but does not include such manufactures or manufacturing processes as may be prescribed;
11. (15) “person” includes an individual, a joint family or Hindu Undivided Family, a company, a firm, an association of persons or body of individuals, whether incorporated or not, a society, club or other institution, a local authority, the Central Government or a State Government and every artificial juridical person not falling within any of the preceding descriptions;
12. (16) “place of business” means any place where a dealer carries on business and includes,--
    • (a) a warehouse, godown or other place where a dealer stores or processes his goods;
    • (b) any place where a dealer produces or manufactures goods;
    • (c) any place where a dealer keeps his books of accounts;
    • (d) any vehicle or vessel or any other carrier wherein the goods are stored or used for transporting the goods;
    • (e) any place of business of an agent by whatever name called through whom a dealer carries on business;
13. (17) “prescribed ” means prescribed by rules;
14. (18) “purchase price“ means the amount of valuable consideration paid or payable by a person for any purchase made including the amount of duties levied or leviable under the Central Excise Tariff Act, 1985 or the Customs Act, 1962 and any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged and includes, -
    • (a) in relation to –
      • (i) the transfer, otherwise than in pursuance of a contract of property in any goods,
      • (ii) the supply of goods by any unincorporated association or body of persons to a member thereof,
      • (iii) the supply by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), the amount of cash, deferred payment or other valuable consideration paid or payable therefor,
    • (b) in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, such amount as is arrived at by deducting from the amount of valuable consideration paid or payable by a person for the execution of such works contract, the amount representing labour charges for such execution,
    • (c) in relation to the delivery of goods on hire purchase or any system of payment by installments, the amount of valuable consideration payable by a person for such delivery;
15. (19) “raw materials” means goods used as ingredient in the manufacture of other goods and includes processing materials, consumable stores and so manufactured but does not include fuels for the purpose of generation of electricity;
16. (20) “registered dealer“ means a dealer registered under the provisions of this Act, who holds a certificate of registration granted or deemed to have been granted under this Act;
17. (21) “resale” means a sale of purchased goods,-
    • (i) in the same form in which they were purchased; or
    • (ii) without using them in the manufacture of any goods or without doing anything to them which amounts to or results in, a manufacture; and the word “resell” shall be construed accordingly;
18. (22) “rules” means the rules made under this Act;
19. (23) “sale” means a sale of goods made within the State for cash or deferred payment or other valuable consideration and includes,-
    • (a) transfer, otherwise than in pursuance of a contract, of property in goods for cash, deferred payment or other valuable consideration,
    • (b) transfer of property in goods (whether as goods or in some other form) involved in execution of a works contract,
    • (c) delivery of goods on hire purchase or any system of payment by installments,
    • (d) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration,
    • (e) supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration,
    • (f) supply of goods by a society or club or an association to its members on payment of a price or of fees or subscription or any consideration,
    • (g) supply of goods by way of or as part of any service or in any other manner whatsoever, of
    • (h) supply of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration,
      • (i) supply by way of barter of goods,
    • (j) disposal of goods by a person in the manner prescribed in Explanation
      • (iii) to clause 10 but does not include a mortgage, hypothecation, charge or pledge; and the words “sell”, “buy” and “purchase” with all their grammatical variations and cognate expressions shall be construed accordingly. Explanation.-
      • (i) - For the purposes of this clause, “sale within the State” includes a sale determined to be inside the State in accordance with the principles formulated in sub-section
20. (2) of section 4 of the Central Act;
    • (ii) for the purpose of sub-clause
    • (b) of the expression “works contract” means a contract for execution of works and includes such works contract as the State Government may, by notification in the Official Gazette, specify;
      • (iii) every transfer of property in goods by the Central Government, any State Government, a statutory body or a local authority for cash, deferred payment or other valuable consideration, whether or not in the course of business, shall be deemed to be a sale for the purposes of this Act;
21. (24) “sale price” means the amount of valuable consideration paid or payable to a dealer or received or receivable by a dealer for any sale of goods made including the amount of duties levied or leviable under the Central Excise Tariff Act, 1985 or the Customs Act, 1962 and any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof, and includes, -
    • (a) in relation to –
      • (i) the transfer, otherwise than in pursuance of a contract, of property in any goods,
      • (ii) the transfer of the right to use any goods for any purpose, whether or not for a specified period,
      • (iii) the supply of goods by any unincorporated association or body of persons to a member thereof,
      • (iv) the supply by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating), the amount of cash, deferred payment or other valuable consideration paid or payable therefor;
    • (b) in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for the execution of such works contract, the amount representing labour charges for such execution;
    • (c) in relation to the delivery of goods on hire purchase or any system of payment by installments, the amount of valuable consideration payable to a person for such delivery;
22. (25) “Schedule” means a Schedule appended to this Act;
23. (26) “the State” means the State of Gujarat;
24. (27) “tax” means a tax leviable and payable under this Act on sales of goods;
25. (28) “tax period” means a calendar month or a quarter as may be prescribed by the State Government;
26. (29) “taxable goods” means goods liable to tax under section 7 excluding the goods on which no tax is payable under section 5;
27. (30) “taxable turnover” means the turnover of all sales of a dealer during the prescribed period in any year, which remains after deducting therefrom,-
    • (a) the turnover of sales not subject to tax under this Act;
    • (b) the turnover of goods declared exempt under a notification under sub-section
28. (2) of section 5, and
    • (c) in case of turnover of sales in relation to works contract, the charges towards labour, service and other like charges, and subject to such conditions as may be prescribed: Provided that in the cases where the amount of charges towards labour, service and other like charges in such contract are not ascertainable from the terms and conditions of the contract, the amount of such charges shall be calculated in such manner as may be prescribed;
29. (31) “Tribunal” means the tribunal constituted under section 19;
30. (32) “turnover of purchases” means the aggregate of the amounts of purchase price paid or payable by a dealer in respect of any purchase of goods made by him during a given period after deducting the amount of purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller and returned to him within the prescribed period;
31. (33) “turnover of sales” means the aggregate of the amount of sale price received or receivable by a dealer in respect of any sale of goods made during a given period after deducting the amount of sale price, if any, refunded by the dealer to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period;
32. (34) “total turnover” means aggregate of the following transactions effected by a dealer,
    • (a) turnover of sales of goods within the State whether such sales of goods are taxable or exempt under this Act;
    • (b) turnover of sales of goods in the course of inter-State trade or commerce;
    • (c) turnover of sales of goods in the course of export of goods out of the territory of India;
    • (d) turnover of sales by a dealer on his own account and also on behalf of his principal;
33. (35) “value of goods” means the value as ascertained from the purchase invoices or bills and includes insurance charges, excise duties, countervailing duties, value added tax, sales tax, transport charges, freight charges and all other charges incidental to the transaction of the goods: Provided that where the purchase invoices or bills are not produced or when the goods are acquired or obtained otherwise than by way of purchase, the value of goods shall be the value at which the goods of like kind or quality are sold or are capable of being sold in open market;
34. (36) “year” means a financial year;

1. (1) Subject to the provisions of this Act, every dealer,-
   • (i) whose total turnover during the year immediately preceding the appointed day exceeded rupees five lakhs and whose taxable turnover exceeded rupees ten thousand in a year (the aforesaid amounts of total turnover and taxable turnover are hereinafter referred to as “thresholds of turnover”), or
   • (ii) who was registered under the earlier law or under the Central Act as on the appointed day, or
   • (iii) whose total turnover and taxable turnover in any year first exceed the thresholds of turnover, or
   • (iv) who is registered or liable to be registered as a dealer under this Act or under the Central Act at any time after the appointed day shall be liable to pay tax in accordance with the provisions of this Act.
2. (2) Not withstanding anything contained in this section, a casual dealer or an auctioneer shall be liable to be registered if his taxable turnover of sales exceeds ten thousand rupees and he shall be liable to pay tax in accordance with the provisions of this Act.
3. (3) The dealer shall be liable to pay tax,--
   • (a) in case of clauses
     • (i) and
     • (ii) of sub-section (1), with effect from the appointed day;
   • (b) in case of clause
     • (iii) of sub-section (1), with immediate effect when his turnover calculated from the commencement of the year first exceeds the thresholds of turnover;
   • (c) in case of clause
     • (iv) of sub-section (1), with immediate effect when he becomes so liable or the date of registration under this Act, whichever is earlier: Provided that the dealer shall not be liable to pay tax in respect of thresholds of turnover as takes place during the period prior to the relevant date of effect under this sub-section.
4. (4) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of one year during which his total turnover and taxable turnover have remained below the thresholds of turnover: Provided that any dealer whose liability to pay tax under this Act ceases or his total turnover and taxable turnover during the year remains below the thresholds of turnover, may apply for the cancellation of his certificate of registration; and on such cancellation, his liability to pay tax shall cease and such dealer shall remain liable to pay tax till his certificate of registration is cancelled.
5. (5) Every dealer whose liability to pay tax under this Act has ceased under sub-section
6. (4) or whose certificate of registration has been cancelled, shall, if his total turnover and taxable turnover calculated from the commencement of any year (including the year in which the registration has been cancelled) again exceed the thresholds of turnover, on any day within such year, be liable to pay tax with effect from the date immediately following the day on which his such turnover again exceed thresholds of turnover of sales effected by him after that date.
7. (6) Where by an order passed under this Act, it is found that any person registered as a dealer ought not to have been so registered, then, notwithstanding anything contained in this Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he were a dealer.

Nothing contained in this Act or the rules made thereunder shall be deemed to impose or authorise the imposition of tax on any sale or purchase of any goods where such sale or purchase takes place-

1. (a) in the course of inter-State trade or commerce; or
2. (b) outside the State; or
3. (c) in the course of the import of goods into or export of goods out of the territory of India, and the provisions of this Act and the rules thereunder shall be construed accordingly. Explanation.- Sections 3, 4 and 5 of the Central Act shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in clauses (a),
4. (b) or (c).

1. (a) Subject to such conditions as it may impose, the State Government may, if it considers necessary so to do in the public interest, by notification in the Official Gazette, exempt any specified class of sales of goods by any specified dealer specified class of dealers from payment or sales of the whole or any part of the tax payable under the provisions of this Act.
2. (b) Where the State Government considers it necessary so to do in the public interest to continue tax exemption granted to the sales of goods by industrial units under sub-section

1. (2) of section 49 of the Gujarat Sales Tax Act, 1969, it may, by notification in the Official Gazette, continue such exemption with such modification, subject to such conditions and for such period, as may be prescribed.
2. (3) Every notification issued under sub-section
3. (2) shall be laid for not less than thirty days before the State Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such modifications as the State Legislature may make, during the session in which it is so laid or session immediately following. Any rescission or modification so made by the State Legislature shall be published in the Official Gazette, and shall thereupon take effect. 5A.

Taxes payable by a dealer Subject to the other provisions of this Act, every dealer, who is liable to pay tax under this Act, shall pay the tax leviable in accordance with the provisions of this Act.

1. (1) Subject to the provisions of this Act, there shall be levied a tax on the turnover of sale of Motor spirit commonly known as Petrol, High Speed Diesel, Aviation Turbine Fuel, Petroleum Crude, Natural Gas and Alcoholic Liquor for human consumption specified in Schedule III at the rate set out against each of them: Provided that the Government may levy, from importer or manufacturer or oilmarketing companies, a tax at full rate on the retail price in such manner as may be notified by the Government.
2. (2) The State Government may, by notification in the Official Gazette,-
   • (ii) add to or omit from, or otherwise amend or modify Schedule III so as to levy tax on the basis of price, weight, volume, measurement or unit, or reduce or enhance the rate of tax payable in respect of any goods specified in Schedule III and thereupon Schedule III shall be deemed to have been amended accordingly.
3. (3) Every notification issued under sub-section
4. (2) shall be laid for not less than thirty days before the State Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make, during the session in which it is so laid or session immediately following. Any rescission or modification so made by the State Legislature shall be published in the Official Gazette, and shall thereupon take effect.

For the purpose of proper identification of the goods, the State Government may by rules, assign the HSN code to each of the goods specified in the Schedules and different codes may be assigned to different goods covered under the same entry in the Schedules.

1. (1) The provisions of sub-section
2. (2) shall apply where, in relation to the sales of taxable goods by any registered dealer-
   • (a) that sale has been cancelled; or
   • (b) the consideration previously agreed upon for that sale has been altered by agreement with the recipient, whether due to the offer of a discount or for any other reason; or
   • (c) the goods or part of the goods sold have been returned to the seller, and as a result of the occurrence of any one or more of the above mentioned events of such sales, the seller has-
     • (i) provided a tax invoice in relation to that sale and the amount shown therein as tax charged on that sale is incorrect in relation to the amount properly chargeable on that sale; or
     • (ii) furnished a return in relation to the period in respect of which tax on that sale is attributable, and has accounted for an incorrect amount of tax on that sale in relation to the amount properly chargeable on that sale.
3. (2) Where a seller has accounted for either in the tax invoice or in the return an incorrect amount of tax as contemplated in sub-section (1), such seller shall make an adjustment in calculating the tax payable by him in the return for the tax period during which it has become apparent that the tax is incorrect. Such adjustment shall be made in the following manner, namely:-
   • (a) if the amount of tax chargeable in relation to that sale exceeds the amount of tax actually accounted for by the seller, the amount of that excess shall be deemed to be tax charged by such seller in relation to a taxable sale attributable to the tax period in which the adjustment is to be made, and shall not be attributable to any prior tax period; or
   • (b) the amount of tax actually accounted for exceeds the amount of tax properly chargeable in relation to that sale, such seller shall reduce the amount of tax attributable to the said tax period in terms of section 7 by that excess amount of tax: Provided that the reduction in the amount of tax under clause
   • (b) shall not be made-
   • (a) where the excess tax has been borne by the purchaser of goods, or
   • (b) If the relevant event as described in sub-section
4. (1) has occurred subsequent to such period as may be prescribed, from the date of such sales made by the dealer. 9.

Deeming provision for packing material Notwithstanding anything contained in this Act , the value of goods shall be inclusive of value of packing material unless value of packing material is separately charged and tax is collected under the Gujarat Goods and Services Tax Act, 2017.

1. (a) A registered dealer who has purchased the taxable goods (hereinafter referred to as the “purchasing dealer”) shall be entitled to claim tax credit equal to the amount of,-
   • (i) tax collected from the purchasing dealer by a registered dealer from whom he has purchased such goods or the tax payable by the purchasing dealer to a registered dealer who has sold such goods to him during the tax period, or;
   • (ii) [Deleted]
   • (iii) [Deleted]
2. (b) The tax credit to be so claimed under this sub-section shall be subject to the provisions of sub-sections

1. (2) to (12); and the tax credit shall be calculated in such manner as may be prescribed.
2. (2) The registered dealer who intends to claim the tax credit shall maintain the register and the books of accounts in such manner as may be prescribed. (3)
   • (a) Subject to the provisions of this section, tax credit to be claimed under sub-section
3. (1) shall be allowed to a purchasing dealer on his purchase of taxable goods which are intended for the purpose of-
   • (i) sale or re-sale by him in the State;
   • (ii) sale in the course of inter-State trade and commerce;
   • (iii) branch transfer or consignment of taxable goods to other States (subject to the provision of sub-clause
   • (b) below);
     • (iv) sales in the course of export out of the territory of India;
     • (v) sales to export oriented units or the units in Special Economic Zones for sale in the course of export out of the territory of India;
     • (vi) use as raw material in the manufacture of taxable goods intended for
     • (i) to
     • (v) above; Provided that if purchases are used partially for the purposes specified in this sub-section, the tax credit shall be allowed proportionate to the extent they are used for the purposes specified in this sub-section.
   • (b) Notwithstanding anything contained in this section, the amount of tax credit in respect of a dealer shall be reduced by the amount of tax calculated at the rate of four per cent. on the taxable turnover of purchases with in the State.
     • (i) of taxable goods consigned or dispatched for branch transfer or to his agent outside the State, or
     • (ii) of taxable goods which are used as raw materials in the manufacture, which are dispatched outside the State in the course of branch transfer or consignment or to his agent outside the State,
     • (iii) of fuel used for the manufacture of taxable goods: Provided that where the rate of tax of the taxable goods consigned or dispatched by a dealer for branch transfer or to his agent outside the State is less than four per cent., then the amount of tax credit in respect of such dealer shall be reduced by the amount of tax calculated at the rate of tax set out in the Schedule on such goods on the taxable turnover of purchases with in the State.
4. (4) The tax credit shall not be claimed by the purchasing dealer until the tax period in which he receives from a registered dealer from whom he has purchased taxable goods, a tax invoice (in original) containing particulars as may be prescribed under sub-section
5. (1) of section 60 evidencing the amount of tax.
6. (5) Notwithstanding anything contained in this Act, tax credit shall not be allowed for purchases-
   • (a) made from any person other than a registered dealer under this Act;
   • (b) made from a dealer who is not liable to pay tax under this Act;
   • (c) [Deleted]
   • (d) made prior to the relevant date of liability to pay tax as provided in sub-section
7. (3) of section 3;
   • (dd) made prior to the date of registration;
   • (e) made in the course of inter-State trade and commerce;
   • (f) of the goods (not being taxable goods dispatched outside the state in the course of branch transfer or consignment) which are disposed of otherwise than in sale, resale or manufacture;
   • (g) of the goods exempt from whole of tax by a notification under sub-section
8. (2) of section 5;
   • (h) of the goods which are used in manufacture of the goods exempt from the whole of the tax by a notification under sub-section
9. (2) of section 5.
   • (k) of the property or goods not connected with the business of the dealer;
   • (l) of the goods which are used as fuel in generation of electrical energy meant for captive use or otherwise;
   • (ll) of petrol, high speed diesel, and petroleum crude and lignite unless such purchase is intended for resale;
   • (m) of the goods which are used as fuel in motor vehicles;
   • (mmm) of the goods for which right to use is transferred for any purpose (whether or not for a specified period), for cash, deferred payment or other valuable considerations;
   • (mmmm) made from a dealer after the name of such dealer has been published under sub-section
10. (11) of section 27 or section 97;
    • (n) of the goods which remain as unsold stock at the time of closure of business;
    • (o) where original invoice does not contain the details of tax charged separately by the selling dealer from whom purchasing dealer has purchased the goods;
    • (p) where original tax invoice or duplicate thereof dully authenticated in accordance with the rules made in this behalf is not available with purchasing dealer or there is evidence that the same has not been issued by the selling dealer from whom the goods are purported to have been purchased;
      • (II) Notwithstanding anything contained in clause
    • (d) or
    • (dd) in this sub-section and subject to such conditions and in such manner as may be prescribed, a registered dealer shall be allowed to claim tax credit for the taxable goods held in stock on the date of registration which are purchased after 1st April, 2008 and during the period of one year ending on the date of registration.
11. (6) The State Government may, by notification in the Official Gazette, specify any goods or the class of dealers that shall not be entitled to whole or partial tax credit.
12. (7) Where a registered dealer without entering into a transaction of sale, issues to another registered dealer tax invoice, retail invoice, bill or cash memorandum with the intention to defraud the Government revenue or with the intention that the Government may be defrauded of its revenue, the Commissioner may, after making such inquiry as he thinks fit and giving a reasonable opportunity of being heard, deny the benefit of tax credit, in respect of such transaction, to such registered dealers issuing or accepting such tax invoice, retail invoice, bill or cash memorandum either prospectively or retrospectively from such date as the Commissioner may, having regard to the circumstances of the case, fix. (7A) Notwithstanding anything contained in this section, in no case the the amount of tax credit on any purchase of goods shall exceed the amount of tax in respect of the same goods, actually paid, if any, under this Act or any earlier law, into Government treasury: (8)
    • (a) If the goods purchased were intended for the purposes specified under sub-section
13. (3) and are subsequently used fully or partly for purposes other than those specified under the said sub-section or are used fully or partly in the circumstances described in sub-section (5), the tax credit, if availed of, shall be reduced on account of such use, from the tax credit being claimed for the tax period during which such use has taken place; and such reduction shall be done in the manner as may be prescribed.
    • (b) Where the capital goods referred to in sub-clause
      • (vii) of clause
    • (a) of sub-section
14. (3) are not used continuously for a full period of five years in the State, the amount of tax credit shall be reduced proportionately having regard to the period falling short of the period of five years: Provided that, whene a dealer migrating to the Gujarat Goods and Services Tax Act, 2017 uses the Capital goods till completion of remaining period of limit of 5 years continuously under the Gujarat Goods and Services Tax Act,2017, the tax credit shall not be reduced for such period. (8A)
15. (1) when a dealer has availed the tax credit for tax paid on puchases of goods in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the date of coming into force of the gujarat Value Added Tax (Amendment) Act, 2017 and he opts for composition under section 10 of the Gujarat Goods and Services Tax Act, 2017, such tax credit shall stand reversed. Such amount of reversed tax credit shall be adjusted from the present balance of tax credit available. If such dealer does not have in balance the tax credit available for adjustment of reversed tax credit, he shall pay into Government treasury, a sum equal to the amount of unadjustment reversed tax credit.
16. (2) when a dealer has availed the tax credit for tax paid on puchases of capital goods on the date of coming into force of the Gujarat Value Added Tax (Amendment) Act, 2017 and he opts for composition under section 10 of the Gujarat Goods and Services Tax Act, 2017, but period of five year has not completed, such tax credit shall stand reversed. Such amount of reversed tax credit shall be adjusted from the present balance of tax credit available. If such dealer does not have in balance the tax credit available for adjustment of reversed tax credit, he shall pay into Government treasury, a sum equal to the amount of unadjusted reversed tax credit.
17. (9) The registered dealer may claim the amount of net tax credit, which shall be determined in the manner as may be prescribed.
18. (10) Where any purchaser, being a registered dealer, has been issued with a credit note or debit note in terms of section 61 or if he returns or rejects goods purchased, as a consequence of which the tax credit availed by him in any period in respect of which the purchase of goods relates, becomes either short or excess, he shall compensate such short or excess by adjusting the amount of tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned, subject to such conditions as may be prescribed.
19. (11) A registered dealer shall apply fair and reasonable method to determine, for the purpose of this section, the extent to which the goods are sold, used, consumed or supplied, or intended to be sold, used, consumed or supplied. The Commissioner may, after giving the dealer an opportunity of being heard and for the reasons to be recorded in writing, reject the method adopted by the dealer and calculate the amount of tax credit as he deems fit.
20. (12) Subject to the exceptions as may be prescribed by the rules, any dealer including the Commission agent shall not be permitted to transfer his tax credit to any other dealer or as the case may be, the principal. Explanation.—For the purpose of this section the amount of tax credit on any purchase of goods shall not exceed the amount of tax actually paid or payable under this Act in respect of the same goods. 12. [Deleted] [Tax Credit For Stock on 31st March, 2003] was deleted by Guj. 26 of 2017, s.10.

The net amount of Value Added Tax for a tax period payable shall be determined after the adjustment of tax credit in the manner as may be prescribed.

14. [Deleted] [Deleted.]

14A. [Deleted] [Deleted.]

14B. [Deleted] [Deleted.]

14C. [Deleted] [Deleted.]

14D.

Burden of proof The burden of proof shall lie on a dealer who claims that he is not liable to pay tax under this Act in respect of any sale effected by him or is eligible for a tax credit under section 11 and section 12.

1. (1) For carrying out the purposes of this Act, the State Government shall appoint an officer to be called the Commissioner of Commercial Tax: Provided that, the officers appointed under the Gujarat Goods and Services Tax Act, 2017 shall be deemed to be the officers appointed under the provisions of this Act.]
2. (2) To assist the Commissioner in the execution of his functions under this Act, the State Government may appoint Special Commissioners, Additional Commissioners and such number of –
   • (a) Joint Commissioners,
   • (b) Deputy Commissioners,
   • (c) Assistant Commissioners,
   • (d) Commercial Tax Officers, and
   • (e) other officers and persons, and give them such designations, as the State Government thinks necessary: Provided that, the officers appointed under the Gujarat Goods and Services Tax Act, 2017 shall be deemed to be the officers appointed under the provisions of this Act to assist the Commissioner in the executions under this sub-section]
3. (3) The Commissioner shall have jurisdiction over the whole of the State, the Special Commissioner and an Additional Commissioner shall have jurisdiction over the whole of the State or where the State Government so directs, over any local area thereof. All other officers shall have jurisdiction over the whole of the State or over such local areas as the State Government may specify.
4. (4) The Commissioner shall have and exercise all the powers and perform all the duties, conferred or imposed on him by or under this Act. The Special Commissioner and an Additional Commissioner shall, save as otherwise directed by the State Government, have and exercise within his jurisdiction all the powers and perform all the duties, conferre

23.

Non-transferability of registration

Dealers deemed to be deregistered Dealers deemed to be deregistered.—(1) Notwithstanding anything contained in this Act, if a registered dealer has not furnished returns in respect of any tax period, for a continuous period of one year, such dealer shall be deemed to have been deregistered with effect from the date of expiry of such period.

1. (2) The Commissioner shall, after giving the dealer an opportunity of being heard, pass an order of such deemed deregistration.

Periodical payment of tax and interest on non-payment of tax Periodical payment of tax and interest on non-payment of tax.—(1) Tax in respect of any tax period shall be paid in such manner and within such time as may be prescribed.

1. (2) If any dealer fails to pay the tax within the time prescribed under sub-section (1), he shall be liable to pay, in addition to the tax, interest at such rate not exceeding one and a half per cent of the amount of tax for each month or part thereof, for the period by which the payment of the tax or any part thereof is delayed, as may be prescribed.

Provisional refund Provisional refund. —

1. (1) Where a registered dealer has made a sale in the course of export of goods out of the territory of India and the tax credit is claimed under sub-section
2. (1) of section 11 in respect of the goods exported, then the Commissioner may, after being satisfied with the prima facie evidence of export, grant a provisional refund of the tax credit claimed.
3. (2) The provisional refund granted under sub-section
4. (1) shall be adjusted against the refund, if any, due to the dealer at the time of final assessment.

Interest on refund.—

1. (1) A registered dealer shall be entitled to receive simple interest at the rate of six per cent. per annum on the amount of refund, for the period commencing from the date immediately following the date of expiry of ninety days from the date of receipt of the application for refund in the prescribed form complete in all respects or from the date of the order and ending with the date on which the refund is granted: Provided that, the interest shall be paid on the amount of refund, less the amount of penalty, if any, payable by the dealer.
2. (2) Where by reason of any order passed in appeal or other proceedings under this Act, the refund to which the dealer is entitled is increased or decreased, as the case may be, the interest payable shall be proportionately increased or decreased.

Power to withhold refund in certain cases.—

1. (1) Where an order giving rise to a refund is the subject matter of an appeal or other proceedings under this Act or where any other proceeding under this Act is pending, and the Commissioner is of the opinion that the grant of the refund is likely to adversely affect the revenue, the Commissioner may, after giving the dealer an opportunity of being heard, withhold the refund till such time as he may determine.
2. (2) Where a refund is withheld under sub-section (1), the dealer shall be entitled to interest as provided in section 38, if as a result of the appeal or proceeding, he becomes entitled to the refund.

Refund of tax for certain categories.—

1. (1) Subject to the provisions of this Act, the State Government may, by notification in the Official Gazette, provide for the refund of tax paid by such categories of dealers or persons as may be specified in the notification.
2. (2) The refund under sub-section
3. (1) shall be subject to such conditions, restrictions and in such manner as may be prescribed.

Remission of tax, penalty or interest.— The State Government may, in such circumstances and subject to such conditions as may be prescribed, remit the whole or any part of the tax, penalty or interest payable by any dealer or class of dealers.

Payment and recovery of tax and interest on delayed payment.—

1. (1) The amount of tax due under this Act shall be paid in the manner as may be prescribed.
2. (2) If a dealer fails to pay the amount of tax within the time prescribed for its payment, he shall be liable to pay, in addition to the tax, interest at the rate of one per cent. per month on the amount of tax so remaining unpaid, for the period of default.
3. (3) The interest payable under sub-section
4. (2) shall be calculated from the due date of payment of tax.
5. (4) Any tax, interest or penalty due under this Act which remains unpaid shall be recoverable as arrears of land revenue.

Continuation of certain recovery proceedings.—

1. (1) Where a notice of demand in respect of any tax, penalty or interest is served upon a dealer and any appeal or other proceeding is filed or initiated in respect thereof, then,—
   • (a) where such appeal or proceeding results in the enhancement of the amount of tax, penalty or interest, the Commissioner shall serve upon the dealer another notice of demand in respect of the amount by which such tax, penalty or interest is enhanced, and any recovery proceedings in relation to the amount covered by the notice or notices of demand served upon him before the disposal of such appeal or proceeding may be continued from the stage at which such proceedings stood immediately before such disposal;
   • (b) where such appeal or proceeding results in the reduction of such amount, it shall not be necessary for the Commissioner to serve upon the dealer a fresh notice of demand and the amount of tax, penalty or interest reduced shall be deemed to be the amount due from the dealer.
2. (2) No proceedings in relation to such amount as is referred to in sub-section
3. (1) shall be invalid by reason only that no fresh notice of demand was served after the disposal of the appeal or proceeding, as the case may be.

Special mode of recovery.—(1) The Commissioner may, at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to the Commissioner), require—

1. (a) any person from whom any amount of money is due, or may become due, to the dealer, or
2. (b) any person who holds or may subsequently hold money for or on account of the dealer, to pay to the Commissioner, either forthwith upon the money becoming due or at or within the time specified in the notice (not being before the money becomes due or is held as aforesaid), so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax, interest and penalty or the whole of the money when it is equal to or less than that amount.

1. (2) The Commissioner may at any time or from time to time amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.
2. (3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer and the receipt of the Commissioner shall constitute a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount referred to in the receipt.
3. (4) Any payment made by any person under this section to the Commissioner shall be deemed to have been made on behalf of the dealer and the amount so paid shall be credited to the amount of tax, interest, or penalty due by the dealer.
4. (5) Any person discharging any liability to the dealer after receipt of the notice referred to in this section shall be personally liable to the Commissioner to the extent of the liability discharged or to the extent of the liability of the dealer for tax, interest and penalty, whichever is less.
5. (6) Where a person to whom a notice under this section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the dealer or that he does not hold any money for or on account of the dealer, then nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Commissioner to the extent of his own liability to the dealer on the date of the notice, or to the extent of the dealer’s liability for tax, interest and penalty, whichever is less.
6. (7) The Commissioner may apply to the court in whose custody there is money belonging to the dealer for payment to him of the entire amount of such money, or if it is more than the tax, interest and penalty due, an amount sufficient to discharge such tax, interest and penalty.

Liability in case of transfer of business Liability in case of transfer of business.—Where a dealer, who is liable to pay tax under this Act, transfers his business in whole or in part, by sale, gift, lease, leave or license, hire or in any other manner whatsoever, the dealer and the person to whom the business is so transferred shall jointly and severally be liable to pay the tax (including penalty and interest) due from the dealer up to the time of such transfer, whether such tax (including penalty and interest) has been assessed before the transfer but has remained unpaid or is assessed thereafter.

Liability in case of company in liquidation Liability in case of company in liquidation.—

1. (1) Every person—
   • (a) who is or has been a liquidator of any company which is being wound up, or
   • (b) who has been appointed to receive assets of any company which is being wound up, (hereinafter referred to as "the liquidator") shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the Commissioner.
2. (2) The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify to the liquidator within three months from the date on which he receives notice of the appointment of the liquidator, the amount which, in the opinion of the Commissioner, would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.
3. (3) The liquidator shall not part with any of the assets of the company or the properties in his hands until he has been notified by the Commissioner under sub-section
4. (2) and, on being so notified, shall set aside an amount equal to the amount notified and, until he so sets aside such amount, shall not part with any of the assets of the company or the properties in his hands: Provided that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties for the purpose of the payment of the tax payable by the company under this Act or for making any payment to secured creditors whose debts are entitled under law to priority of payment over debts due to Government on the date of liquidation or for meeting such costs and expenses of the winding up of the company as are in the opinion of the Commissioner reasonable.
5. (4) If the liquidator fails to give the notice in accordance with sub-section
6. (1) or fails to set aside the amount as required by sub-section
7. (3) or parts with any assets of the company or the properties in his hands in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax which the company would be otherwise liable to pay under this Act.

Accounts Accounts.

1. (1) Every dealer liable to pay tax under this Act, and every other dealer on whom a notice has been served to do so, shall maintain a true and correct account of his business in the manner as may be prescribed.
2. (2) If the Commissioner considers that the accounts maintained by any dealer are not sufficiently clear and intelligible to enable him to make a valid assessment, he may require such dealer by notice in writing to maintain such accounts in such form as he may direct.

Accounts to be audited in certain cases Accounts to be audited in certain cases.—(1) Any dealer, whose turnover in a year exceeds such amount as may be prescribed, shall get his accounts audited by an accountant and furnish a report of such audit in the prescribed form and within the prescribed time, duly signed and verified by such accountant and setting forth such particulars and certificates as may be prescribed.

1. (2) If any dealer liable to furnish an audit report under sub-section
2. (1) fails to furnish such report within the time as aforesaid, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, impose on him, in addition to any tax payable, a sum by way of penalty not exceeding rupees ten thousand as may be prescribed.

Dealer to declare the name of manager of business.

1. (1) Every dealer, who is a Hindu Undivided Family, an association of persons, a club, a society, a firm or a company, or who is engaged in business as the guardian or trustee or otherwise on behalf of another person, shall within the period prescribed, furnish a declaration in the prescribed manner to the prescribed authority stating the name of the person who shall be deemed to be the manager of such business for the purposes of this Act.
2. (2) Such declaration may be furnished at any time and may also be revised from time to time.
3. (3) The statement furnished under this section shall specify the name of the manager of the business and he shall be responsible for all the acts and omissions of the dealer under this Act.

Furnishing of specimen signature Furnishing of specimen signature. – Every dealer who is registered under this Act shall furnish to the prescribed authority or the officer authorized by the Commissioner, a specimen of the signature of the person who is authorized by the dealer to sign returns, statements, declarations, notices and other documents and shall, from time to time, furnish such new specimen of signature as may be required by such authority or officer.

Inspection of goods in transit, etc The source document provided concludes at Section 17 and does not contain the text for Section 68 ("Inspection of goods in transit, etc.").

The source document provided concludes at Section 17 and does not contain the text for Section 69 ("Transit pass for transit of goods by road through the State").

The source document provided concludes at Section 17 and does not contain the text for Section 70 ("Furnishing of information by owners of cold storage, warehouses, godowns, etc.").

The source document provided concludes at Section 17 and does not contain the text for Section 70A ("Furnishing of information by others").

Determination of disputed questions.—(1) If any question arises, otherwise than in any proceedings before a court, whether for the purposes of this Act—

1. (a) any person, society, club or association or any other body of persons or a trust, is a dealer; or
2. (b) any transaction is a sale or purchase; or
3. (c) any particular goods are taxable; or
4. (d) any goods are tax-free; or
5. (e) any particular case involves a sale inside the State or outside the State or a sale in the course of inter-State trade or commerce or a sale in the course of import into or export out of the territory of India, the Commissioner shall, upon application made by any person or dealer, determine such question or such questions.

1. (2) The Commissioner may direct that the determination shall not affect the liability of any dealer under this Act as respects any sale or purchase effected prior to the determination.
2. (3) If any such question arises from any order already passed under this Act or any other proceeding, no such question shall be entertained for determination under this section.

Power of Commissioner and other authorities to take evidence on oath, etc.

The Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner, Commercial Tax Officer or an appellate authority or a revisional authority shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (V of 1908), when trying a suit, in respect of the following matters, namely:—

1. (a) enforcing the attendance of any person and examining him on oath or affirmation;
2. (b) compelling the production of documents and accounts;
3. (c) issuing commissions; and
4. (d) such other matters as may be prescribed.

Exclusion of Period in some Cases Exclusion of Period in some Cases. — In computing the period of limitation prescribed for any appeal or application or for any other proceeding under this Act, the time during which the order complained against remained suspended by the order of any court of law or under any stay order, shall be excluded.

Offences by companies, etc.

1. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.—For the purposes of this section,—
   • (a) "company" means any body corporate, and includes a firm or other association of individuals; and
   • (b) "director", in relation to a firm, means a partner in the firm.

Investigation of offence Investigation of offence.—(1) Subject to such conditions as may be prescribed, the Commissioner may authorize, either generally or in respect of a particular case or class of cases, any officer not below the rank of a Commercial Tax Officer to investigate all or any of the offences punishable under this Act.

1. (2) Every officer so authorized shall, in the conduct of such investigation, exercise the powers conferred by the Code of Criminal Procedure, 1973 (2 of 1974) upon an officer-in-charge of a police station for the investigation of a cognizable offence.

Disclosure of information required under section 71 Disclosure of information required under section 71. Any person required to furnish any information under section 71 shall, notwithstanding anything contained in any law for the time being in force, furnish such information to the Commissioner or any other officer authorised by him in this behalf.

Levy of fees.

1. (1) There shall be levied such fees for determination of disputed questions, for appeals, for revisions, for application for copies of assessment orders or other documents, for certified copies of orders and for such other matters as may be prescribed.
2. (2) Such fees shall be paid in the prescribed manner.

Publication of information regarding dealers and other persons in public interest.

1. (1) If the State Government considers it necessary or expedient in the public interest to publish the name of any dealer or other person and any other particulars relating to any proceedings under this Act in respect of such dealer or person, it may publish or cause to be published such name and particulars in such manner as it thinks fit.
2. (2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the appellate authority, or as the case may be, an application for revision to the revisional authority has expired without an appeal or application has been presented or the appeal or application, if presented, has been disposed of.
3. (3) No publication under this section shall be made in relation to any proceeding until the cases are decided.

Power to make rules.

1. (1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the matters which under any provision of this Act are required to be, or may be, prescribed.
3. (3) The power to make rules conferred by this section shall be subject to the condition of previous publication.
4. (4) All rules made under this section shall be laid for not less than thirty days before the State Legislature as soon as may be after they are made and shall be subject to such modifications as the State Legislature may make during the session in which they are so laid or the session immediately following.

Power to remove difficulties. If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by general or special order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty.

Repeal and savings.

1. (1) The Gujarat Sales Tax Act, 1969, the Bombay Sales of Motor Spirit Taxation Act, 1958 and the Gujarat Purchase Tax on Sugarcane Act, 1989 are hereby repealed: Provided that such repeal shall not—
   • (a) affect the previous operation of the enactments so repealed or anything duly done or suffered thereunder;
   • (b) affect any right, privilege, obligation or liability acquired, accrued or incurred under the enactments so repealed;
   • (c) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against any of the enactments so repealed;
   • (d) affect any investigation or legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if the aforesaid enactments had not been repealed.
2. (2) Nothing in section 6 of the Bombay General Clauses Act, 1904 shall apply to such repeal.
3. (3) Notwithstanding anything contained in sub-section (1), any appointment, notification, rule, order, registration, certificate, notice, form or license made, issued or granted under the enactments so repealed shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been made, issued or granted under the corresponding provisions of this Act and shall, unless and until superseded by any appointment, notification, rule, order, registration, certificate, notice, form or license made, issued or granted under this Act, continue in force accordingly.