Bare Act
The Madhya Pradesh Goods and Services Tax Act, 2017
0. Preamble
Sections N= ANP w 7. 8. 9. 12. 13. 14. 15. 10. aa Feewa,fete12YA2017 MADHYAPRADESHACT No.19oF2017 THEMADHYAPRADESHGOODSANDSERVICESTAXACT,2017 TABLE OFCONTENTS
Chapter IX RETURNS
43. Matching,reversalandreclaimofinputtaxcredit.
(1) The details of every credit note relating to outward supply furnished by a registered person (hereafter in this section referred to as the “supplier”) for a tax period shall, in such manner and within such time as may be prescribed, be matched— (a) with the corresponding reduction in the claim for input tax credit by the corresponding registered person (hereafter in this section referred to as the “recipient”) in his valid return for the same tax period or any subsequent tax period; and (b) for duplication of claims for reduction in output tax liability. (2) The claim for reduction in output tax liability by the supplier that matches with the corresponding reduction in the claim for input tax credit by the recipient shall be finally accepted and communicated, in such manner as may be prescribed, to the supplier. (3) Where the reduction of output tax liability in respect of outward supplies exceeds the corresponding reduction in the claim for input tax credit or the corresponding credit note is not declared by the recipient in his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be prescribed. (4) The duplication of claims for reduction in output tax liability shall be communicated to the supplier in such manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the recipient in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. (6) The amount in respect of any reduction in output tax liability that is found to be on account of duplication of claims shall be added to the output tax liability of the supplier in his return for the month in which such duplication is communicated. (7) The supplier shall be eligible to reduce, from his output tax liability, the amount added under sub-section (5) if the recipient declares the details of the credit note in his valid return within the time specified in sub-section (9) of section 39, (8) A supplier in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section 50 in respect of the amount so added from the date of such claim for reduction in the output tax liability till the corresponding additions are made under the said sub-sections. (9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to the supplier by crediting the amount in the corresponding head of his electronic cash ledger in such manner as may be prescribed: Provided that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the recipient. (10) The amount reduced from output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the supplier in his return for the month in which such contravention takes place and such supplier shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 50.
Chapter IX RETURNS
45. 44.
Every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as may be prescribed.
Chapter IX RETURNS
47. 46.
(1) Any registered person who fails to furnish the details of outward or inward supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees. (2) Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent of his turnover in the State.
Chapter IX RETURNS
48. (2)Anyregisteredpersonwhofailstofurnishthe
(1) The manner of approval of goods and services tax practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions relevant for their functioning shall be such as may be prescribed. (2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45 in such manner as may be prescribed. (3) Notwithstanding anything contained in sub-section (2), the responsibility for correctness of any particulars furnished in the return or other details filed by the goods and services tax practitioners shall continue to rest with the registered person on whose behalf such return and details are furnished.
Chapter IX RETURNS
50. section
(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council. (2) The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid. (3) A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent, as may be notified by the Government on the recommendations of the Council.
Chapter IX RETURNS
51. GB)Ataxablepersonwhomakesanundueorexcess
(1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate— (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as “the deductor”), to deduct tax at the rate of one per cent from the payment made or credited to the supplier (hereafter in this section referred to as “the deductee”) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees: Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or, as the case may be, Union territory of registration of the recipient. Explanation.—For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, integrated tax and cess indicated in the invoice. (2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed. (3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such other particulars in such manner as may be prescribed. (4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of such five day period until the failure is rectified, subject to a maximum amount of five thousand rupees. (5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub-section (3) of section 39, in such manner as may be prescribed. (6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted. (7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74. (8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54: Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.
Chapter IX RETURNS
53. operator.
On utilisation of input tax credit availed under this Act for payment of tax dues under the Integrated Goods and Services Tax Act in accordance with the provisions of sub-section (5) of section 49, as reflected in the valid return furnished under sub-section (1) of section 39, the amount collected as State tax shall stand reduced by an amount equal to such credit so utilised and the State Government shall transfer an amount equal to the amount so reduced from the State tax account to the integrated tax account in such manner and within such time as may be prescribed.
Chapter IX RETURNS
54. section
(1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as maybe prescribed: Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such manner as may be prescribed, (2) A specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons, as notified under section 55, entitled to a refund of tax paid by it on inward supplies of goods or services or both, may make an application for such refund, in such form and manner as may be prescribed, before the expiry of six months from the last day of the quarter in which such supply was received. (3) Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period: Provided that no refund of unutilised input tax credit shall be allowed in cases other than- (i) zero-rated supplies made without payment of tax; . (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council: Provided further that no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty: Provided also that no refund of input tax credit shall be allowed, if the supplier of goods or services or both claims refund ofthe integrated tax paid on such supplies. (4) The application shall be accompanied by— (a) such documentary evidence as maybe prescribed to establish that a refund is due to the applicant; and (b) such documentary or other evidence (including the documentsreferred to in section 33) as the applicant may | furnish to establish that the amountof tax andinterest, if any, paid on such tax or any other amountpaid in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such tax and interest had not been passed on to any other person: _ Provided that where the amount claimed as refund is less than Rs. 2,00,000,it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration, based on the documentary or other evidences available with him, certifying that the incidence of such tax and interest had not been passed on to any other person. (5) If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in section 57. (6) Notwithstanding anything contained in sub-section (5), the proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent of the total amount so claimed, excluding the amountof input tax credit provisionally accepted, in such manner and subject to such conditions, limitations and safeguards as may be prescribed and thereafter make an order under sub-section (5) for final settlement of the refund claim after due verification of documents furnished by the applicant. (7) The properofficer shall issue the order under sub-section (5) within sixty days from the date of receipt of application complete in all respects. (8) Notwithstanding anything contained in sub-section (5), the refundable amountshall, instead of | being credited to the Fund, be paid to the applicant, if such amountis relatable to — (a) refund of tax paid on zero-rated supplies of goodsor services or both or on inputs or input services _ used in making such zero-rated supplies; (b) refund of unutilised input tax credit under sub-section (3); (c) refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued; (d) refund of tax in pursuance of section 77; (e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; or (f) the tax or interest borne by such other class of applicants as the Government may, on_ the recommendations of the Council, by notification, specify. (9) Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of the Appellate Tribunal or any court or in any other provisions of this Act or the rules made thereunder or in any other law for the time being in force, no refund shall be made except in accordance with the provisions of sub-section (8). (10) Where any refund is due under sub-section (3) | to a registered person who has defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which has not been stayed by any court, Tribunal or Appellate Authority by the specified date, the proper officer may— (a) withhold payment of refund due until the said person has furnished the return or paid the tax, interest or penalty, as the case may be; (b) deduct from the refund due, any tax, interest, penalty, fee or any other amount which the taxable personis liable to pay but which remains unpaid under this Act or underthe existing law. Explanation.—For the purposesofthis sub-section, the expression “specified date” shall mean the last date for filing an appeal underthis Act. (11) Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioneris of the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refundtill such time as he may determine. (12) Where a refund is withheld under sub-section (11), the taxable person shall, notwithstanding anything contained in section 56, be entitled to interest at such rate not exceeding six per cent as may be notified on the recommendations of the Council, if as a result of the appeal or further proceedings he becomesentitled to refund. (13) Notwithstanding anything to the contrary contained in this section, the amount of advance tax deposited by a casual taxable person or a non-resident taxable person under sub-section (2) of section 27, shall not be refunded unless such person has, in respect of the entire period for whichthecertificate of registration granted to him had remained in force, furnished all the returns required undersection 39. (14) Notwithstanding anything contained in this section, no refund under sub-section (5) or sub-section (6) shall be paid to an applicant, if the amountis less than one thousandrupees. Explanation.—Forthe purposesofthis section,— (1) “refund” includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs Or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refundof unutilised input tax credit as provided under sub-section (3). (2) “relevant date” means — (a) in the case of goods exported out of India where a refund oftax paid is available in respect of goods themselvesor, as the case may be, the inputs or input services used in such goods,— (i) if the goods are exported by sea orair, the date on which the ship ortheaircraft in which such goodsare loaded, leaves India; or (ii) if the goods are exported by land, the date on which such goodspassthe frontier; or (iii) if the goods are exported by post, the date of despatch of goods by the Post Office concernedto a place outside India; (b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished; (c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of— (i) receipt of payment in convertible foreign exchange, where the supply of services had been completedprior to the receipt of such payment; or (ii) issue of invoice, where payment for the services had been received in advance prior to the date of issue of the invoice; (d) in case where the tax becomes refundable as a consequenceofjudgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction; (e) in the case of refund of unutilised input tax credit under sub-section (3), the end of the financial year in whichsuchclaim for refund arises; (f) in the case where tax is paid provisionally under this Act or the rules made thereunder, the date of adjustmentoftax after the final assessmentthereof; (g) in the case of a person, other than the supplier, the date of receipt of goodsor services or both by such person; and (h) in any other case, the date of paymentoftax.
Chapter IX RETURNS
55. tax.
The Government may, on the recommendations of the Council, by notification, specify any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries and any other person or class of persons as maybe specifiedin this behalf, who shall, subject to such conditions and restrictions as may be prescribed, be entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them.
Chapter IX RETURNS
58. Reapewstya,fea12YA2017528(207)
(1) All sums credited to the Fund shall be utilised by the Government for the welfare of the consumers in such manner as may be prescribed. (2) The Government or the authority specified by it shall maintain proper and separate account and other relevant records in relation to the Fund and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor General of India.
Chapter IX RETURNS
60. 39.
(1) Subject to the provisions of sub-section (2), where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him. (2) The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed. (3) The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment: Provided that the period specified in this sub-section may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding six months and by the Commissioner for such further period not exceeding four years. (4) The registered person shall be liable to pay interest on any tax payable on the supply of goods or services or both under provisional assessment but not paid on the due date specified under sub-section (7) of section 39 or the rules made thereunder, at the rate specified under sub-section (1) of section 50, from the first day after the due date of payment of tax in respect of the said supply of goods or services or both till the date of actual payment, whether such amount is paid before or after the issuance of order for final assessment. (5) Where the registered person is entitled to a refund consequent to the order of final assessment under sub-section (3), subject to the provisions of sub-section (8) of section 54, interest shall be paid on such refund as provided in section 56.
Chapter IX RETURNS
61. (5)Wheretheregisteredpersonisentitledtoarefund
(1) The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto. (2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard. (3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65 or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74.
Chapter IX RETURNS
63. continue.
Notwithstanding anything to the contrary contained in section 73 or section 74, where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under sub-section (2) of section 29 but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgement for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates: Provided that no such assessment order shall be passed without giving the person an opportunity of being heard.
Chapter IX RETURNS
66. (1)
(1) If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner. (2) The chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and
Chapter IX RETURNS
67. ARREST
(1) Where the proper officer, not below the rank of Power of inspection, Joint Commissioner, has reasons to believe that— search and seizure. (a) a taxable person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has HeeUsTa,frie12FA2017 528(213)
indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or (b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, he may authorise in writing any other officer of State tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place. (2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable-to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of State tax to search and seize or may himself search and seize such goods, documents or books or things: Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorised by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer: Provided further that the documents or books or things so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act. (3) The documents, books or things referred to in sub- section (2) or any other documents, books or things produced by a taxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made 528(214) Heewa,feats12FA2017
thereunder, shall be returned to such person within a period not exceeding thirty days of the issue of the said notice. (4) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any premises or to break open any almirah, electronic devices, box, receptacle in which any goods, accounts, registers or documents of the person are suspected to be concealed, where access to such premises, almirah, electronic devices, box or receptacle is denied. (5) The person from whose custody any documents are seized under sub-section (2) shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation. — (6) The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. (7) Where any goods are seized under sub-section (2) and no notice in respect thereof is given within six months of the seizure of the goods, the goods shall be returned to the person from whose possession theywereseized: Provided that the period of six months may, on sufficient cause being shown, be extended by the proper officer for a further period not exceeding six months. (8) The Government may, having regard to the _ perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be. after its seizure HeeUsa,fete12FA2017 undersub-section(2),bedisposedofbythe properofficerinsuchmannerasmaybe prescribed. (9)Whereanygoods,beinggoodsspecifiedunder sub-section(8),havebeenseizedbyaproper officer,oranyofficerauthorisedbyhimunder sub-section(2),heshallprepareaninventoryof suchgoodsinsuchmannerasmaybeprescribed. 2of1974.(10)TheprovisionsoftheCodeofCriminal Procedure,1973,relatingtosearchandseizure, shall,sofarasmaybe,applytosearchandseizure underthissectionsubjecttothemodificationthat sub-section(5)ofsection165ofthesaidCode shallhaveeffectasiffortheword“Magistrate”, whereveritoccurs,theword“Commissioner” weresubstituted. (11)Wheretheproperofficerhasreasonstobelieve thatanypersonhasevadedorisattemptingto evadethepaymentofanytax,hemay,forreasons toberecordedinwriting,seizetheaccounts, registersordocumentsofsuchpersonproduced beforehimandshallgrantareceiptforthesame, andshallretainthesameforsolongasmaybe -hecessaryinconnectionwithanyproceedings underthisActortherulesmadethereunderfor prosecution. (12)TheCommissioneroranofficerauthorisedby
Chapter IX RETURNS
68. 67.
(1) The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed. (2) The details of documents required to be carried under sub-section (1) shall be validated in such manner as may be prescribed. (3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods.
Chapter XIV INSPECTION,SEARCH,SEIZUREANDARREST
69. Powertoarrest.
(1) Where the Commissioner has reasons to believe that a person has committed any offence specified in sub-section (1) of section 132 which is punishable under clause (i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, by order, authorise any officer of State tax to arrest such person. (2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of section 132, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a Magistrate within twenty four hours. (3) Subject to the provisions of the Code of Criminal Procedure, 1973,-- (a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the custody of the Magistrate; (b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner or the Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station.
Chapter XIV INSPECTION,SEARCH,SEIZUREANDARREST
71. Accesstobusinesspremises.
(1) Any officer under this Act, authorised by the proper officer not below the rank of Joint Commissioner, shall have access to any place of business of a registered person to inspect books of account, documents, computers, computer programs, computer software whether installed in a computer or otherwise and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue. (2) Every person in charge of place referred to in sub-section (1) shall, on demand, make available to the officer authorised under sub-section (1) or the audit party deputed by the proper officer or a cost accountant or chartered accountant nominated under section 66, (i) such records as prepared or maintained by the registered person and declared to the proper officer in such manner as may be prescribed; (ii) trial balance or its equivalent; (iii) statements of annual financial accounts, duly audited, wherever required; (iv) cost audit report, if any, under section 148 of the Companies Act, 2013; (v) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961; and (vi) any other relevant record.
Chapter XV DEMANDSANDRECOVERY
73. 73
Determination of tax not paid or short paid or erroneously refunded or input tax credit 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93, 94. wrongly availed or utilised for any reason other than fraud or any wilful misstatement orsuppressionoffacts. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts. . General provisions relating to determination of tax. Tax collected but not paid to Government. Tax wrongfully collected and paid to Central Government or State Government. Initiation of recovery proceedings. Recovery of tax. . Payment of tax and other amount in instalments. Transfer of property to be void in certain cases Tax to be first charge on property. Provisional attachment to protect revenue in certain cases. Continuation and validation of certain recovery proceedings.
Chapter XVII ADVANCERULING
95. Definitions.,
The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services: Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax: Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.
Chapter XVII ADVANCERULING
97. Advance Ruling.
(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought. (2) The question on which the advance ruling is sought under this Act, shall be in respect of, - (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or Services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Chapter XVII ADVANCERULING
98. Procedureonreceiptofapplication._
(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the concerned officer and, if necessary, call upon him to furnish the relevant records: Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the said concerned officer. (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application: Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act: Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant: Provided also that where the application is rejected, the reasons for such rejection shall be specified in the order. (3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the concerned officer. (4) Where an application is admitted under sub-section (2), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority and after providing an opportunity of being heard to the applicant or his authorised representative as well as to the concerned officer or his authorised representative, pronounce its advance ruling on the question specified in the application. (5) Where the members of the Authority differ on any question on which the advance ruling is sought,
Chapter XVII ADVANCERULING
99. ConstitutionofAppellateAuthorityforAdvanceRuling
The Government shall, by notification, constitute an Authority to be known as Madhya Pradesh Appellate Authority for Advance Ruling for Goods and Services Tax for hearing appeals against the advance ruling pronounced by the Advance Ruling Authority: Provided that the Government may, on the recommendations of the Council, notify any Appellate Authority located in another State or Union territory to act as the Appellate Authority for the State.
Chapter XVII ADVANCERULING
100. AppealtotheAppellateAuthority.
(1) The concerned officer, the jurisdictional officer or an applicant aggrieved by any advance ruling pronounced under sub-section (4) of section 98, may appeal to the Appellate Authority. (2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the concerned officer, the jurisdictional officer and the applicant: Provided that the Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, allow it to be presented within a further period not exceeding thirty days. (3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.
Chapter XVII ADVANCERULING
101. OrdersofAppellateAuthority.
(1) The Appellate Authority may, after giving the parties to the appeal or reference an opportunity of being heard, pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to. (2) The order referred to in sub-section (1) shall be passed within a period of ninety days from the date of filing of the appeal under section 100 or a reference under sub-section (5) of section 98. (3) Where the members of the Appellate Authority differ on any point or points referred to in appeal or reference, it shall be deemed that no advance ruling can be issued in respect of the question under the appeal or reference. (4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by the Members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer, the jurisdictional officer and to the Authority after such pronouncement.
Chapter XVII ADVANCERULING
102. Rectificationofadvanceruling.
The Authority or the Appellate Authority may amend any order passed by it under section 98 or section 101, so as to rectify any error apparent on the face of the record, if such error is noticed by the Authority or the Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer, or the applicant or the appellant within a period of six months from the date of the order: Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made unless the applicant or the appellant has been given an opportunity of being heard.
Chapter XVII ADVANCERULING
103. Applicabilityofadvanceruling.
(1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only— (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. (2) The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.
Chapter XVII ADVANCERULING
105. PowersofAuthorityandAppellateAuthority.
(1) The Authority or the Appellate Authority shall, for the purpose of exercising its powers regarding— (a) discovery and inspection; (b) enforcing the attendance of any person and examining him on oath; (c) issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908. (2) The Authority or the Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973, and every proceeding before the Authority or the Appellate Authority shall be deemed to be a judicial proceedings within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code.
Chapter XVII ADVANCERULING
106. ProcedureofAuthorityandAppellateAuthority.
The Authority or the Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure.
Chapter XVIII APPEALSANDREVISION
107. AppealstoAppellateAuthority.
(1) Any person aggrieved by any decision or order passed under this Act or the Central Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person. (2) The Commissioner may, on his own motion, or upon request from the Commissioner of central tax, call for and examine the record of any proceeding in which an adjudicating authority has passed any decision or order under this Act or the Central Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order. (3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application. (4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month. (5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed. (6) No appeal shall be filed under sub-section (1), unless the appellant has paid— (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed. (7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed. (8) The Appellate Authority shall give an opportunity to the appellant of being heard. (9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing: Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal. (10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable. (11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order: Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order: Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or section 74. (12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision. (13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed: Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year.
Chapter XVIII APPEALSANDREVISION
108. PowersofRevisionalAuthority.
(1) Subject to the provisions of section 121 and any rules made thereunder, the Revisional Authority may, on his own motion, or upon information received by him or on request from the Commissioner of central tax, call for and examine the record of any proceedings, and if he considers that any decision or order passed under this Act or under the Central Goods and Services Tax Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order. (2) The Revisional Authority shall not exercise any power under sub-section (1), if— (a) the order has been subject to an appeal under section 107 or section 112 or section 117 or section 118; or (b) the period specified under sub-section (2) of section 107 has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised; or (c) the order has already been taken for revision under this section at an earlier stage; or (d) the order has been passed in exercise of the powers under sub-section (1): Provided that the Revisional Authority may pass an order under sub-section (1) on any point which has not been raised and decided in an appeal referred to in clause (a) of sub-section (2), before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of three years referred to in clause (b) of that sub-section, whichever is later. (3) Every order passed in revision under sub-section (1) shall, subject to the provisions of section 113 or section 117 or section 118, be final and binding on the parties. (4) If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court or the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section. (5) Where the issuance of an order under sub-section (1) is stayed by the order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2). (6) For the purposes of this section, the term,— (i) "record" shall include all records relating to any proceedings under this Act available at the time of examination by the Revisional Authority; (ii) "decision" shall include intimation given by any officer lower in rank than the Revisional Authority.
Chapter XVIII APPEALSANDREVISION
109. AppellateTribunalandBenchesthereof.
(1) Subject to the provisions of this Chapter, the Goods and Services Tax Tribunal constituted under the Central Goods and Services Tax Act shall be the Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority under this Act. (2) The constitution and jurisdiction of the State Bench and the Area Benches located in the State shall be in accordance with the provisions of section 109 of the Central Goods and Services Tax Act or the rules made thereunder.
Chapter XVIII APPEALSANDREVISION
110. PresidentandMembersofAppellateTribunal,theirqualification,appointment,
The qualifications, appointment, salary and allowances, terms of office, resignation and removal of the President and Members of the State Bench and Area Benches shall be in accordance with the provisions of section 110 of the Central Goods and Services Tax Act.
Chapter XVIII APPEALSANDREVISION
111. ProcedurebeforeAppellateTribunal.
(1) The Appellate Tribunal shall, while disposing of any proceedings before it or an appeal before it, be bound by the procedure laid down in the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and subject to the other provisions of this Act and the rules made thereunder, the Appellate Tribunal shall have power to regulate its own procedure. (2) The Appellate Tribunal shall, for the purposes of discharging its functions under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) dismissing a representation for default or deciding it ex parte; (g) setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and (h) any other matter which may be prescribed. (3) Any order made by the Appellate Tribunal may be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,— (a) in the case of an order against a company, the registered office of the company is situated; or (b) in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain. (4) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code, and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
Chapter XVIII APPEALSANDREVISION
112. AppealstoAppellateTribunal.
(1) Any person aggrieved by an order passed against him under section 107 or section 108 of this Act or the Central Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal. (2) The Appellate Tribunal may, in its discretion, refuse to admit any such appeal where the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined by such order, does not exceed Rs. 50,000. (3) The Commissioner may, on his own motion, or upon request from the Commissioner of central tax, call for and examine the record of any order passed by the Appellate Authority or the Revisional Authority under this Act or under the Central Goods and Services Tax Act for the purpose of satisfying himself as to the legality or propriety of the said order and may, by order, direct any officer subordinate to him to apply to the Appellate Tribunal within six months from the date on which the said order has been passed for determination of such points arising out of the said order as may be specified by the Commissioner in his order. (4) Where in pursuance of an order under sub-section (3) the authorised officer makes an application to the Appellate Tribunal, such application shall be dealt with by the Appellate Tribunal as if it were an appeal made against the order under sub-section (11) of section 107 or under sub-section (1) of section 108 and the provisions of this Act shall apply to such application, as they apply in relation to appeals filed under sub-section (1). (5) On receipt of notice that an appeal has been preferred under this section, the party against whom the appeal has been preferred may, notwithstanding that he may not have appealed against such order or any part thereof, file, within forty five days of the receipt of notice, a memorandum of cross-objections, verified in the prescribed manner, against any part of the order appealed against and such memorandum shall be disposed of by the Appellate Tribunal, as if it were an appeal presented within the time specified in sub-section (1). (6) The Appellate Tribunal may admit an appeal within three months after the expiry of the period referred to in sub-section (1), or permit the filing of a memorandum of cross-objections within forty five days after the expiry of the period referred to in sub-section (5), if it is satisfied that there was sufficient cause for not presenting it within that period. (7) An appeal to the Appellate Tribunal shall be in such form, verified in such manner and shall be accompanied by such fee, as may be prescribed. (8) No appeal shall be filed under sub-section (1), unless the appellant has paid — (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and (b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of the section 107, arising from the said order, in relation to which the appeal has been filed. (9) Where the appellant has paid the amount as per sub-section (8), the recovery proceedings for the balance amount shall be deemed to be stayed till the disposal of the appeal. (10) Every application made before the Appellate Tribunal, — (a) in an appeal for rectification of error or for any other purpose; or (b) for restoration of an appeal or an application, shall be accompanied by such fees as may be prescribed.
Chapter XVIII APPEALSANDREVISION
113. OrdersofAppellateTribunal.
(1) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modified or annulling the decision or order appealed against or may refer the case back to the Appellate Authority, or the Revisional Authority or to the original adjudicating authority, with such directions as it may think fit, for a fresh adjudication or decision after taking into account additional evidence, if necessary, as may be admitted.
Chapter XVIII APPEALSANDREVISION
114. FinancialandadministrativepowersofStatePresident.
The State President shall exercise such financial and administrative powers over the State Bench and Area Benches of the Appellate Tribunal in a State, as may be prescribed: Provided that the State President shall have the authority to delegate such of his financial and administrative powers as he may think fit to any other Member or any officer of the State Bench or Area Benches, subject to the condition that such Member or officer shall, while exercising such delegated powers, continue to act under the direction, control and supervision of the State President.
Chapter XVIII APPEALSANDREVISION
115. Interestonrefundofamountpaidforadmissionofappeal.
Where an amount paid by the appellant under sub-section (6) of section 107 or sub-section (8) of section 112 is required to be refunded consequent to any order of the Appellate Authority or of the Appellate Tribunal, interest at the rate specified under section 56 shall be payable in respect of such refund from the date of payment of the amount till the date of refund of such amount.
Chapter XVIII APPEALSANDREVISION
116. Appearancebyauthorisedrepresentative.
(1) Any person who is entitled or required to appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings under this Act, may, otherwise than when required under this Act to appear personally for examination on oath or affirmation, subject to the other provisions of this section, appear by an authorised representative. (2) For the purposes of this Act, the expression “authorised representative” shall mean a person authorised by the person referred to in sub-section (1) to appear on his behalf, being — (a) his relative or regular employee; or (b) an advocate who is entitled to practice in any court in India, and who has not been debarred from practicing before any court in India; or (c) any chartered accountant, a cost accountant or a company secretary, who holds certificate of practice and who has not been debarred from practice; or (d) a retired officer of the Commercial Tax Department of any State Government or Union territory or of the Board who, during his service under the Government, had worked in a post not below the rank than that of a Group-B Gazetted officer for a period of not less than two years: Provided that such officer shall not be entitled to appear before any proceedings under this Act for a period of one year from the date of his retirement or resignation; or (e) any person who has been authorised to act as a goods and services tax practitioner on behalf of the concerned registered person. (3) No person, — (a) who has been dismissed or removed from Government service; or (b) who is convicted of an offence connected with any proceedings under this Act, the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, or under the existing law or under any of the Acts passed by a State Legislature dealing with the imposition of taxes on sale of goods or supply of goods or services or both; or (c) who is found guilty of misconduct by the prescribed authority; (d) who has been adjudged as an insolvent, shall be qualified to represent any person under sub-section (1)— (i) for all times in case of persons referred to in clauses (a), (b) and (c); and (ii) for the period during which the insolvency continues in the case of a person referred to in clause (d). (4) Any person who has been disqualified under the provisions of the Central Goods and Services Tax Act or the Goods and Services Tax Act of any other State or the Union Territory Goods and Services Tax Act shall be deemed to be disqualified under this Act.
Chapter XVIII APPEALSANDREVISION
117. AppealtoHighCourt.
(1) Any person aggrieved by any order passed by the State Bench or Area Benches of the Appellate Tribunal may file an appeal to the High Court and the High Court may admit such appeal, if it is satisfied that the case involves a substantial question of law. (2) An appeal under sub-section (1) shall be filed within a period of one hundred and eighty days from the date on which the order appealed against is received by the aggrieved person and it shall be in such form, verified in such manner as may be prescribed: Provided that the High Court may entertain an appeal after the expiry of the said period if it is satisfied that there was sufficient cause for not filing it within such period. (3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question and the appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. (4) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (5) The High Court may determine any issue which— (a) has not been determined by the State Bench or Area Benches; or (b) has been wrongly determined by the State Bench or Area Benches, by reason of a decision on such question of law as herein referred to in sub-section (3). (6) Where an appeal has been filed before the High Court, it shall be heard by a Bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges. (7) Where there is no such majority, the Judges shall State the point of law upon which they differ and the case shall, then, be heard upon that point only, by one or more of the other Judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it. (8) Where the High Court delivers a judgment in an appeal filed before it under this section, effect shall be given to such judgment by either side on the basis of a certified copy of the judgment. (9) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908, relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.
Chapter XVIII APPEALSANDREVISION
118. AppealtoSupremeCourt..
(1) An appeal shall lie to the Supreme Court— (a) from any order passed by the National Bench or Regional Benches of the Appellate Tribunal; or (b) from any judgment or order passed by the High Court in an appeal made under section 117 in any case which, on its own motion or on an application made by or on behalf of the party aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit one for appeal to the Supreme Court. (2) The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section as they apply in the case of appeals from decrees of a High Court. (3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section 117 in the case of a judgment of the High Court.
Chapter XVIII APPEALSANDREVISION
120. Appealnottobefiledincertaincases.
(1) The Commissioner may, on the recommendations of the Council, from time to time, issue orders or instructions or directions fixing such monetary limits, as he may deem fit, for the purposes of regulating the filing of appeal or application by the officer of the State tax under the provisions of this Chapter. (2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the officer of the State tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the State tax from filing appeal or application in any other case involving the same or similar issues or questions of law. (3) Notwithstanding the fact that no appeal or application has been filed by the officer of the State tax pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a party in appeal or application shall contend that the officer of the State tax has acquiesced in the decision on the disputed issue by not filing an appeal or application.
Chapter XVIII APPEALSANDREVISION
121. Nonappealabledecisionsandorders.
Notwithstanding anything to the contrary in any provisions of this Act, no appeal shall lie against any decision taken or order passed by an officer of State tax if such decision taken or order passed relates to any one or more of the following matters, namely:— (a) an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer; or (b) an order pertaining to the seizure or retention of books of account, register and other documents; or (c) an order sanctioning prosecution under this Act; or (d) an order passed under section 80.
Chapter XIX OFFENCESANDPENALTIES
122. Penaltyforcertainoffences.
(1) Where a taxable person who— (i) supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply; (ii) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act or the rules made thereunder; (iii) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (v) fails to deduct the tax in accordance with the provisions of sub-section (1) of section 51, or deducts an amount which is less than the amount required to be deducted under the said sub-section, or where he fails to pay to the Government under sub-section (2) thereof, the amount deducted as tax; (vi) fails to collect tax in accordance with the provisions of sub-section (1) of section 52, or collects an amount which is less than the amount required to be collected under the said sub-section or where he fails to pay to the Government the amount collected as tax under sub-section (3) of section 52; (vii) takes or utilizes input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act or the rules made thereunder; (viii) fraudulently obtains refund of tax under this Act; (ix) takes or distributes input tax credit in contravention of section 20, or the rules made thereunder; (x) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information or return with an intention to evade payment of tax due under this Act; (xi) is liable to be registered under this Act but fails to obtain registration; (xii) furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently; (xiii) obstructs or prevents any officer in discharge of his duties under this Act; (xiv) transports any taxable goods without the cover of documents as may be specified in this behalf; (xv) suppresses his turnover leading to evasion of tax under this Act; (xvi) fails to keep, maintain or retain books of account and other documents in accordance with the provisions of this Act or the rules made thereunder; (xvii) fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or the rules made thereunder or furnishes false information or documents during any proceedings under this Act; (xviii) supplies, transports or stores any goods which he has reasons to believe are liable to confiscation under this Act; (xix) issues any invoice or document by using the registration number of another registered person; (xx) tampers with, or destroys any material evidence or documents; (xxi) disposes off or tampers with any goods that have been detained, seized, or attached under this Act, he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher. (2) Any registered person who supplies any goods or services or both on which any tax has not been paid or short-paid or erroneously refunded, or where the input tax credit has been wrongly availed or utilized,— (a) for any reason, other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees or ten per cent. of the tax due from such person, whichever is higher; (b) for reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty equal to ten thousand rupees or the tax due from such person, whichever is higher. (3) Any person who— (a) aids or abets any of the offences specified in clauses (i) to (xxi) of sub-section (1); (b) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; (c) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; (d) fails to appear before the officer of State tax, when issued with a summon for appearance to give evidence or produce a document in an inquiry; (e) fails to issue invoice in accordance with the provisions of this Act or the rules made thereunder or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to twenty five thousand rupees.
Chapter XIX OFFENCESANDPENALTIES
123. Penaltyforfailuretofurnishinformationreturn.
If a person who is required to furnish an information return under section 150 fails to do so within the period specified in the notice issued under sub-section (3) thereof, the proper officer may direct, that such person shall be liable to pay a penalty of one hundred rupees for each day of the period during which the failure to furnish such return continues: Provided that the penalty imposed under this section shall not exceed five thousand rupees.
Chapter XIX OFFENCESANDPENALTIES
124. Fineforfailuretofurnishstatistics.
If any person required to furnish any information or return under section 151,— (a) without reasonable cause fails to furnish such information or return as may be required under that section, or (b) wilfully furnishes or causes to furnish any information or return which he knows to be false, he shall be punishable with a fine which may extend to ten thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues subject to a maximum limit of twenty five thousand rupees.
Chapter XIX OFFENCESANDPENALTIES
125. Generalpenalty.
Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty five thousand rupees.
Chapter XIX OFFENCESANDPENALTIES
126. Generaldisciplinesrelatedtopenalty.
(1) No officer under this Act shall impose any penalty for minor breaches of tax regulations or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence. Explanation.—For the purpose of this sub-section,— (a) a breach shall be considered a ‘minor breach’ if the amount of tax involved is less than five thousand rupees; (b) an omission or mistake in documentation shall be considered to be easily rectifiable if the same is an error apparent on the face of record. (2) The penalty imposed under this Act shall depend on the facts and circumstances of each case and shall commensurate with the degree and severity of the breach. (3) No penalty shall be imposed on any person without giving him an opportunity of being heard. (4) The officer under this Act shall while imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature of the breach and the applicable law, regulation or procedure under which the amount of penalty for the breach has been specified. (5) When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact as a mitigating factor when quantifying a penalty for that person. (6) The provisions of this section shall not apply in such cases where the penalty specified under this Act is either a fixed sum or expressed as a fixed percentage.
Chapter XIX OFFENCESANDPENALTIES
127. Powertoimposepenaltyincertaincases.
Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section 63 or section 64 or section 73 or section 74 or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.
Chapter XIX OFFENCESANDPENALTIES
128. Powertowaivepenaltyorfeeorboth.
The Government may, by notification, waive in part or full, any penalty referred to in section 122 or section 123 or section 125 or any late fee referred to in section 47 for such class of taxpayers and under such mitigating circumstances as may be specified therein on the recommendations of the Council.
Chapter XIX OFFENCESANDPENALTIES
129. Council.
(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,—
Chapter XIX OFFENCESANDPENALTIES
130. Confiscationofgoodsorconveyancesandlevyofpenalty.
(1) Notwithstanding anything contained in this Act, if any person — (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122. (2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fit: Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon: Provided further that the aggregate of such fine and penalty leviable shall not be less than the amount of penalty leviable under sub-section (1) of section 129: Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon. (3) Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the owner of such goods or conveyance or the person referred to in sub-section (1), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance. (4) No order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard. (5) Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government. (6) The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession. (7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government.
Chapter XIX OFFENCESANDPENALTIES
132. Punishmentforcertainoffences.
(1) Whoever commits any of the following offences, namely:— (a) supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax; (b) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax; (c) avails input tax credit using such invoice or bill referred to in clause (b); (d) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (e) evades tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not covered under clauses (a) to (d); (f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act; (g) obstructs or prevents any officer in the discharge of his duties under this Act; (h) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; (i) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; (j) tampers with or destroys any material evidence or documents; (k) fails to supply any information which he is required to supply under this Act or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; or (l) attempts to commit, or abets the commission of any of the offences mentioned in clauses (a) to (k) of this section, shall be punishable— (i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine; (ii) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for a term which may extend to three years and with fine; (iii) in the case of any other offence where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with imprisonment for a term which may extend to one year and with fine; (iv) in cases where he commits or abets the commission of an offence specified in clause (f) or clause (g) or clause (j), he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both. (2) Where any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years and with fine. (3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and sub-section (2) shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, be for a term not less than six months. (4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable. (5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) and punishable under clause (i) of that sub-section shall be cognizable and non-bailable. (6) A person shall not be prosecuted for any offence under this section except with the previous sanction of the Commissioner. Explanation.- For the purposes of this section, the term “tax” shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly taken under the provisions of this Act, the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and cess levied under the Goods and Services Tax (Compensation to States) Act.
Chapter XIX OFFENCESANDPENALTIES
133. Liabilityofofficersandcertainotherpersons.
(1) Where any person engaged in connection with the collection of statistics under section 151 or compilation or computerisation thereof or if any officer of State tax having access to information specified under sub-section (1) of section 150, or if any person engaged
Chapter XIX OFFENCESANDPENALTIES
135. Presumptionofculpablementalstate.
In any prosecution for an offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. Explanation.—For the purposes of this section— (i) the expression "culpable mental state" includes intention, motive, knowledge of a fact, and belief in, or reason to believe, a fact; (ii) a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.
Chapter XIX OFFENCESANDPENALTIES
136. Relevancyofstatementsundercertaincircumstances.
A statement made and signed by a person on appearance in response to any summons issued under section 70 during the course of any inquiry or proceedings under this Act shall be relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth of the facts which it contains,— (a) when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the court considers unreasonable; or (b) when the person who made the statement is examined as a witness in the case before the court and the court is of the opinion that, having regard to the circumstances of the case, the statement should be admitted in evidence in the interest of justice.
Chapter XIX OFFENCESANDPENALTIES
137. OffencesbyCompanies.
(1) Where an offence committed by a person under this Act is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, Such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence under this Act has been committed by a taxable person being a partnership firm or a Limited Liability Partnership or a Hindu Undivided Family or a trust, the partner or karta or managing trustee shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly and the provisions of sub-section (2) shall mutatis mutandis apply to such persons. (4) Nothing contained in this section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. Explanation.—For the purposes of this section,— (i) "company" means a body corporate and includes a firm or other association of individuals; and (ii) "director", in relation to a firm, means a partner in the firm.
Chapter XIX OFFENCESANDPENALTIES
138. Compoundingofoffences.
(1) Any offence under this Act may, either before or after the institution of prosecution, be compounded by the Commissioner on payment, by the person accused of the offence, to the Central Government or the State Government, as the case may be, of such compounding amount in such manner as may be prescribed: Provided that nothing contained in this section shall apply to — (a) a person who has been allowed to compound once in respect of any of the offences specified in clauses (a) to (f) of sub-section (1) of section 132 and the offences specified in clause (l) which are relatable to offences specified in clauses (a) to (f) of the said sub-section; (b) a person who has been allowed to compound once in respect of any offence, other than those in clause (a), under this Act or under the provisions of any State Goods and Services Tax Act or the Central Goods and Services Tax Act or the Union Territory Goods and Services Tax Act or the Integrated Goods and Services Tax Act in respect of supplies of value exceeding one crore rupees; (c) a person who has been accused of committing an offence under this Act which is also an offence under any other law for the time being in force; (d) a person who has been convicted for an offence under this Act by a court; (e) a person who has been accused of committing an offence specified in clause (g) or clause (j) or clause (k) of sub-section (1) of section 132; and (f) any other class of persons or offences as may be prescribed: Provided further that any compounding allowed under the provisions of this section shall not affect the proceedings, if any, instituted under any other law: Provided also that compounding shall be allowed only after making payment of tax, interest and penalty involved in such offences. (2) The amount for compounding of offences under this section shall be such as may be prescribed, subject to the minimum amount not being less than Rs. 10,000 or fifty per cent of the tax involved, whichever is higher, and the maximum amount not being less than Rs. 30,000 or one hundred and fifty per cent of the tax, whichever is higher. (3) On payment of such compounding amount as may be determined by the Commissioner, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated.
Chapter XX TRANSITIONALPROVISIONS
139. Migrationofexistingtaxpayers.
(1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with. (2) The final certificate of registration shall be granted in such form and manner and subject to such conditions as may be prescribed. (3) The certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section 24.
Chapter XX TRANSITIONALPROVISIONS
140. Transitionalarrangementsforinputtaxcredit.
(3) [Continuation of content from previous sections] (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said registered person is eligible for input tax credit on such inputs under this Act; (iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of such inputs; and (iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day: Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of tax in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed. (4) A registered person, who was engaged in the sale of taxable goods as well as exempted goods or tax free goods, by whatever name called, under the existing law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger,- (a) the amount of credit of the value added tax, if any, carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and (b) the amount of credit of the value added tax, if any, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or tax free goods, by whatever name called, in accordance with the provisions of sub-section (3). (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of value added tax, if any, in respect of inputs received on or after the appointed day but the tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day: Provided that the period of thirty days may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding thirty days: Provided further that the said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this sub-section. (6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of value added tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:— (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said registered person is not paying tax under section 10; (iii) the said registered person is eligible for input tax credit on such inputs under this Act; (iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of inputs; and (v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (7) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as may be prescribed.
Chapter XX TRANSITIONALPROVISIONS
141. Transitionalprovisionsrelatingtojobwork.
(1) Where any inputs received at a place of business had been despatched as such or despatched after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that if such inputs are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142. (2) Where any semi-finished goods had been despatched from the place of business to any other premises for carrying out certain manufacturing processes in accordance with the provisions of existing law prior to the appointed day and such goods (hereafter in this sub-section referred to as “the said goods”) are returned to the said place on or after the appointed day, no tax shall be payable if the said goods, after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that if the said goods are not returned within a period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods to the premises of any registered person for the purpose of supplying therefrom on payment of tax in India or without payment of tax for exports within the period specified in this sub-section. (3) Where any goods had been despatched from the place of business without payment of tax for carrying out tests or any other process, to any other premises, whether registered or not, in accordance with the provisions of existing law prior to the appointed day and such goods, are returned to the said place of business on or after the appointed day, no tax shall be payable if the said goods, after undergoing tests or any other process, are returned to such place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that if the said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods from the said other premises on payment of tax in India or without payment of tax for exports within the period specified in this sub-section. (4) The tax under sub-sections (1), (2) and (3) shall not be payable, only if the person despatching the goods and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the said person on the appointed day in such form and manner and within such time as may be prescribed.
Chapter XX TRANSITIONALPROVISIONS
142. Miscellaneoustransitionalprovisions.
(6) (a) ... Provided that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this Act; (b) every proceeding of appeal, revision, review or reference relating to recovery of input tax credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of the existing law, and if any amount of credit becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (7) (a) Every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (b) Every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and any amount found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions of the existing law and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (8) (a) Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act; (b) Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (9) (a) Where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of input tax credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act; (b) Where any return, furnished under the existing law, is revised after the appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision, any amount is found to be refundable or input tax credit is found to be admissible to any taxable person, the same shall be refunded to him in cash under the existing law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (10) Save as otherwise provided in this Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act. (11) (a) Notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002); (b) Notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; (c) Where tax was paid on any supply, both under the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002) and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. (12) Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day: Provided that the said period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that the tax shall be payable by the person returning the goods if such goods are liable to tax under this Act, and are returned after the period specified in this sub-section: Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within the period specified in this sub-section. (13) Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under the Madhya Pradesh Vat, 2002 (No. 20 of 2002) and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 51 shall be made by the deductor under the said section where payment to the said supplier is made on or after the appointed day. (14) Where any goods or capital goods belonging to the principal are lying at the premises of the agent on the appointed day, the agent shall be entitled to take credit of the tax paid on such goods or capital goods subject to fulfilment of the following conditions: (i) the agent is a registered taxable person under this Act; (ii) both the principal and the agent declare the details of stock of goods or capital goods lying with such agent on the day immediately preceding the appointed day in such form and manner and within such time as may be prescribed in this behalf; (iii) the invoices for such goods or capital goods had been issued not earlier than twelve months immediately preceding the appointed day; and (iv) the principal has either reversed or not availed of the input tax credit in respect of such,- (a) goods; or (b) capital goods or, having availed of such credit, has reversed the said credit, to the extent availed of by him.
Chapter XXI MISCELLANEOUS
143. Jobworkprocedure.
(1) A registered person (hereafter in this section referred to as the “principal”) may, under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall,— (a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax; (b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of, this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case— (i) where the job worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. (2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. (3) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out. (4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out. (5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered. Explanation. - For the purposes of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker.
Chapter XXI MISCELLANEOUS
146. CommonPortal.
The Government may, on the recommendations of the Council, notify the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax, electronic way bill and for carrying out such other functions and for such purposes as may be prescribed.
Chapter XXI MISCELLANEOUS
147. Deemedexports.
The Government may, on the recommendations of the Council, notify certain supplies of goods as “deemed exports”, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.
Chapter XXI MISCELLANEOUS
148. Specialprocedureforcertainprocesses,
The Government may, on the recommendations of the Council, and subject to such conditions and safeguards as may be prescribed, notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons.
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149. Goodsandservicestaxcompliancerating.
(1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act. (2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed. (3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.
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150. Obligationtofurnishinformationreturn.
(1) Any person, being— (a) a taxable person; or (b) a local authority or other public body or association; or (c) any authority of the State Government responsible for the collection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for the collection of excise duty or customs duty; or (d) an income tax authority appointed under the provisions of the Income-tax Act, 1961; or (e) a banking company within the meaning of clause (a) of section 45A of the Reserve Bank of India Act, 1934; or (f) a State Electricity Board or an electricity distribution or transmission licensee under the Electricity Act, 2003, or any other entity entrusted with such functions by the Central Government or the State Government; or (g) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908; or (h) a Registrar within the meaning of the Companies Act, 2013; or (i) the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or (j) the Collector referred to in clause (c) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or (k) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956; or (l) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996; or (m) an officer of the Reserve Bank of India as constituted under section 3 of the Reserve Bank of India Act, 1934; or (n) the Goods and Services Tax Network, a company registered under the Companies Act, 2013; or (o) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25; or (p) any other person as may be specified, on the recommendations of the Council, by the Government, who is responsible for maintaining record of registration or statement of accounts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being in force, shall furnish an information return of the same in respect of such periods, within such time, in such form and manner and to such authority or agency as may be prescribed. (2) Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said authority may allow and if the defect is not rectified within the said period of thirty days or, the further period so allowed, then, notwithstanding anything contained in any other provisions of this Act, such information return shall be treated as not furnished and the provisions of this Act shall apply. (3) Where a person who is required to furnish information return has not furnished the same within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon him a notice requiring furnishing of such information return within a period not exceeding ninety days from the date of service of the notice and such person shall furnish the information return.
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151. Powertocollectstatistics.
(1) The Commissioner may, if he considers that it is necessary so to do, by notification, direct that statistics may be collected relating to any matter dealt with by or in connection with this Act. (2) Upon such notification being issued, the Commissioner, or any person authorised by him in this behalf, may call upon the concerned persons to furnish such information or returns, in such form and manner as may be prescribed, relating to any matter in respect of which statistics is to be collected.
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152. Barondisclosureofinformation.
(1) No information of any individual return or part thereof with respect to any matter given for the purposes of section 150 or section 151 shall, without the previous consent in writing of the concerned person or his authorised representative, be published in such manner so as to enable such particulars to be identified as referring to a particular person and no such information shall be used for the purpose of any proceedings under this Act. (2) Except for the purposes of prosecution under this Act or any other Act for the time being in force, no person who is not engaged in the collection of statistics under this Act or compilation or computerisation thereof for the purposes of this Act, shall be permitted to see or have access to any information or any individual return referred to in section 151. (3) Nothing in this section shall apply to the publication of any information relating to a class of taxable persons or class of transactions, if in the opinion of the Commissioner, it is desirable in the public interest to publish such information.
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153. Takingassistancefromanexpert.
Any officer not below the rank of Assistant Commissioner may, having regard to the nature and complexity of the case and the interest of revenue, take assistance of any expert at any stage of scrutiny, inquiry, investigation or any other proceedings before him.
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154. Powertotakesamples.
The Commissioner or an officer authorised by him may take samples of goods from the possession of any taxable person, where he considers it necessary, and provide a receipt for any samples so taken.
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155. Burdenofproof.
Where any person claims that he is eligible for input tax credit under this Act, the burden of proving such claim shall lie on such person.
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158. Act.
(1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceedings before a criminal court), or in any record of any proceedings under this Act shall, save as provided in sub-section (3), not be disclosed. (2) Notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save as otherwise provided in sub-section (3), require any officer appointed or authorised under this Act to produce before it or to give evidence before it in respect of particulars referred to in sub-section (1). (3) Nothing contained in this section shall apply to the disclosure of,— (a) any particulars in respect of any statement, return, accounts, documents, evidence, affidavit or deposition, for the purpose of any prosecution under the Indian Penal Code or the Prevention of Corruption Act, 1988, or any other law for the time being in force; or (b) any particulars to the Central Government or the State Government or to any person acting in the implementation of this Act, for the purposes of carrying out the objects of this Act; or (c) any particulars when such disclosure is occasioned by the lawful exercise under this Act of any process for the service of any notice or recovery of any demand; or (d) any particulars to a civil court in any suit or proceedings, to which the Government or any authority under this Act is a party, which relates to any matter arising out of any proceedings under this Act or under any other law for the time being in force authorising any such authority to exercise any powers thereunder; or (e) any particulars to any officer appointed for the purpose of audit of tax receipts or refunds of the tax imposed by this Act; or (f) any particulars where such particulars are relevant for the purposes of any inquiry into the conduct of any officer appointed or authorised under this Act, to any person or persons appointed as an inquiry officer under any law for the time being in force; or (g) any such particulars to an officer of the Central Government or of any State Government, as may be necessary for the purpose of enabling that Government to levy or realise any tax or duty; or (h) any particulars when such disclosure is occasioned by the lawful exercise by a public servant or any other statutory authority, of his or its powers under any law for the time being in force; or (i) any particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under this Act against a practising advocate, a tax practitioner, a practising cost accountant, a practising chartered accountant, a practising company secretary to the authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, a cost accountant, a chartered accountant or a company secretary, as the case may be; or (j) any particulars to any agency appointed for the purposes of data entry on any automated system or for the purpose of operating, upgrading or maintaining any automated system where such agency is contractually bound not to use or disclose such particulars except for the aforesaid purposes; or (k) any such particulars to an officer of the Government as may be necessary for the purposes of any other law for the time being in force; and (l) any information relating to any class of taxable persons or class of transactions for publication, if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.
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162. Baronjurisdictionofcivilcourts.
Save as provided in sections 117 and 118, no civil court shall have jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be done under this Act.
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163. Levyoffee.
Wherever a copy of any order or document is to be provided to any person on an application made by him for that purpose, there shall be paid such fee as may be prescribed.
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164. PowerofGovernmenttomakerules.
(1) The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act. (2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules. (3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force. (4) Any rules made under sub-section (1) or sub-section (2) may provide that a contravention thereof shall be liable to a penalty not exceeding Rs. 10,000.
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165. Powertomakeregulations.
The Government may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.
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166. Layingofrules,regulationsandnotifications.
Every rule made by the Government, every regulation made by the Government and every notification issued by the Government under this Act, shall be laid, as soon as may be after it is made or issued, before the State Legislature, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the State Legislature agrees in making any modification in the rule or regulation or in the notification, as the case may be, or the State Legislature agrees that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be.
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167. Delegationofpowers.
The Commissioner may, by notification, direct that subject to such conditions, if any, as may be specified in the notification, any power exercisable by any authority or officer under this Act may be exercisable also by another authority or officer as may be specified in such notification.
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168. Powertoissueinstructionsordirections.
The Commissioner may, if he considers it necessary or expedient so to do for the purpose of uniformity in the implementation of this Act, issue such orders, instructions or directions to the State tax officers as it may deem fit, and thereupon all such officers and all other persons employed in the implementation of this Act shall observe and follow such orders, instructions or directions.
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169. Serviceofnoticeincertaincircumstances.
(1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely:-- (a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on behalf of the taxable person or to a person regularly employed by him in connection with the business, or to any adult member of family residing with the taxable person; or (b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at his last known place of business or residence; or (c) by sending a communication to his e-mail address provided at the time of registration or as amended from time to time; or (d) by making it available on the common portal; or (e) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or
Chapter XXI MISCELLANEOUS
170. Roundingoffoftaxetc.
The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.
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171. Anti-profiteeringmeasure.
(1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. (2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. (3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.
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172. Removalofdifficulties.
(1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty: Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be, after it is made, before the State Legislature.
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173. AmendmentofcertainActs.
Save as otherwise provided in this Act, on and from the date of commencement of whole or any part of this Act, except for the entries of the goods in Schedule I and Schedule II of the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002) relating to the goods specified under entry 54 of the State List in the Seventh Schedule to the Constitution of India and provisions relating to such goods in the said Act, all other entries in the Schedule I and Schedule II and the provisions relating to other goods in the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002) shall stand omitted.
Chapter XXI MISCELLANEOUS
174. Repealandsaving.
(1) Save as otherwise provided in this Act, on and from the date of commencement of whole or any part of this Act, (i) the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (Act No. 52 of 1976) (ii) the Madhya Pradesh Vilasita, Manoranjan, Amod Evam Vigyapan Kar Adhiniyam, 2011 (Act No. 11 of 2011) (hereafter referred to as the repealed Acts) are hereby repealed. (2) The repeal of the said Acts and the amendment of the Acts specified in section 173 (hereafter referred to as “such amendment” or “amended Act”, as the case maybe) to the extent mentioned in sub-section (1) or section 173 shall not— (a) revive anything not in force or existing at the time of such amendment or repeal; or (b) affect the previous operation of the amended Acts or repealed Acts and orders or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the amended Acts or repealed Acts or orders under such repealed Acts: Provided that any tax exemption granted through a notification under the amended Act or repealed Acts shall not continue as privilege; or (d) affect any tax, surcharge, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Act or repealed Acts; or (e) affect any investigation, inquiry, assessment proceedings and any other legal proceedings or recovery of arrears or remedy in respect of any such tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, assessment proceedings and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so amended or repealed; (f) affect any proceedings including that relating to an appeal, revision, review or reference, instituted before, on or after the appointed day under the said amended Act or repealed Acts or the rules made thereunder and such proceedings shall be continued under the said amended Acts or repealed Acts as if this Act had not come into force and the said Acts had not been amended or repealed. (3) The mention of the particular matters referred to in section 173 and sub-section (1) shall not be held to prejudice or affect the general application of the Madhya Pradesh General Clauses Act, 1957 (No. 3 of 1958) with regard to the effect of repeal.
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SCHEDULEII SCHEDULEIII
528(124)FeeUsa,few12FA2017
MADHYAPRADESH ACT No.19oF2017 THEMADHYAPRADESHGOODSANDSERVICESTAXACT,2017 [ReceivedtheassentoftheGovernor onthe9thJune2017;assentfirstpublishedinthe“MadhyaPradeshGazette (Extra-ordinary)”,datedthe12thJune2017]. AnActtomakeaprovisionforlevyandcollectionof- taxonintra-Statesupplyofgoodsorservicesorbothby theStateofMadhyaPradeshandthemattersconnected therewithorincidentalthereto- BeitenactedbytheMadhyaPradeshLegislatureinthe sixty-eighthyearoftheRepublicofIndiaasfollows:- CHAPTERI PRELIMINARY 1. (1) This Act may be called the Madhya Pradesh Short title, extent and Goods and Services Tax Act, 2017. commencement. (2) It extends to the whole of the Madhya Pradesh. (3) It shall come into force on such date as the State Government may, by notification in the official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a . reference to the coming into force of that provision. 2. In this Act, unless the context otherwise requires,— Definitions. (1) “actionable claim” shall have the same meaning as of 1882. assigned to it in section of the Transfer of Property Act, 1882; (2) “address of delivery” means the address of the — recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both;
eaeUsa,feat12FA2017 (3)“addressonrecord”meanstheaddressofthe recipientasavailableintherecordsofthe supplier; (4)“adjudicatingauthority”meansanyauthority, appointedorauthorisedtopassanyorderor decisionunderthisAct,butdoesnotincludethe Commissioner,RevisionalAuthority,the AuthorityforAdvanceRuling,theAppellate AuthorityforAdvanceRuling,theAppellate AuthorityandtheAppellateTribunal; (5)“agent”meansaperson,includingafactor, broker,commissionagent,arhatia,delcredere agent,anauctioneeroranyothermercantileagent, ‘bywhatevernamecalled,whocarriesonthe’ businessofsupplyorreceiptofgoodsorservices orbothonbehalfofanother; (6)“aggregateturnover”meanstheaggregatevalue ofalltaxablesupplies(excludingthevalueof inwardsuppliesonwhichtaxispayablebya persononreversechargebasis),exemptsupplies, exportsofgoodsorservices orbothandinter- Statesuppliesofpersonshavingthesame PermanentAccountNumber,tobecomputedon allIndiabasisbutexcludescentraltax,Statetax, Unionterritorytax,integratedtaxandcess; (7)“agriculturist”meansanindividualor aHindu UndividedFamilywhoundertakescultivationof land— (a)byownlabour,or- (b)bythelabouroffamily,or (c)byservantsonwagespayableincashorkindorby hiredlabourunderpersonalsupervisionorthe personalsupervisionofanymemberofthefamily; (8)“AppellateAuthority”meansan_authority appointedorauthorisedtohearappealsasreferred to insection107; (9)"AppellateTribunal"meanstheGoodsand ServicesTaxAppellateTribunal!referredin ‘section109; (10)“appointedday”meansthedateonwhichthe provisionsofthisActshallcomeintoforce; 528(125)
528(126)Regenwaa,fete12FA2017 (11)“assessment”meansdeterminationoftax liabilityunderthisAct andincludesself- assessment,re-assessment,provisional assessment,summaryassessmentandbest judgementassessment; (12)“associatedenterprises"shallhavethesame 43of1961.meaningasassignedtoitinsection92Aofthe Income-taxAct,1961; (13)“audit”meanstheexaminationofrecords, returnsandotherdocumentsmaintainedor furnishedbytheregisteredpersonunderthisAct ortherulesmadethereunderorunderanyother lawforthetimebeinginforcetoverifythe correctnessofturnoverdeclared,taxespaid, refundclaimedandinputtaxcreditavailed,andto assesshiscompliancewiththeprovisionsofthis Actortherulesmadethereunder; (14)“authorisedbank”shallmeanabankora branchofabankauthorisedbytheCentral Governmenttocollectthetaxoranyotheramount payableunderthisAct; (15)“authorisedrepresentative”means_the representativeasreferredtoundersection116; (16)“Board”meanstheCentralBoardofExcise 54of1963.andCustomsconstitutedundertheCentralBoards ofRevenueAct,1963; (17)“business”includes— (a)anytrade,commerce,manufacture,profession, vocation,adventure,wageroranyother similaractivity,whetherornotitisfora pecuniarybenefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c)anyactivityortransactioninthenatureofsub- clause (a), whether or not there is volume, frequency,continuityorregularityofsuch transaction;
Feeswstta,fei12FA2017 (d)supplyoracquisitionofgoodsincludingcapital© goodsand.servicesinconnectionwith commencementorclosureofbusiness; (e)provisionbyaclub,association,society,orany suchbody(forasubscriptionoranyother. consideration)ofthefacilitiesorbenefitstoits members; (f)admission,foraconsideration,ofpersonstoany premises; (g)servicessuppliedbyapersonastheholderof anofficewhichhasbeenacceptedbyhiminthe courseorfurtheranceofhistrade,professionor vocation; (h)servicesprovidedbyaraceclubbywayof totalisatororalicencetobookmakerinsuch club;and (i)anyactivityortransactionundertakenbythe CentralGovernment,aStateGovernmentor anylocalauthorityinwhichtheyareengaged aspublicauthorities; (18)“businessvertical’meansadistinguishable componentofanenterprisethatisengagedinthe supplyofindividualgoodsorservicesoragroup ofrelatedgoodsorserviceswhichissubjectto risksandreturnsthataredifferentfromthoseof .theotherbusinessverticals. Explanation.—Forthepurposesofthisclause, factors thatshouldbeconsideredindeterminingwhethergoods orservicesarerelatedinclude— (a)thenatureofthegoodsorservices; (b)thenatureoftheproductionprocesses; (c)thetypeorclassofcustomersforthegoodsor services; (d)themethodsusedtodistributethegoodsor supplyofservices;and 528(127)
528(128) 38of1949. Awews,feats12FA2017 (e) the nature of regulatory environment (wherever applicable), including banking, insurance or public utilities; (19)“capitalgoods”meansgoods,thevalueof whichiscapitalisedinthebooksofaccountofthe personclaimingtheinputtaxcreditandwhichare usedorintendedtobeusedinthecourseor furtheranceofbusiness; (20)‘casualtaxableperson”meansapersonwho occasionallyundertakestransactionsinvolving supplyofgoodsorservicesorbothinthecourse orfurtheranceofbusiness,whetherasprincipal, agentorinanyothercapacity,inthetaxable territorywherehehasnofixedplaceofbusiness; (21)“CentralGoodsandServicesTaxAct”means theCentralGoodsandServicesTaxAct,2017 (No.12of2017); (23)“centraltax”meansthecentralgoodsand servicestaxleviedundersection9oftheCentral GoodsandServicesTaxAct; (23)“cess”shallhavethesamemeaningas assignedtoitintheGoodsandServicesTax (CompensationtoStates)Act; (24)“charteredaccountant”meansachartered accountantasdefinedinclause(b)ofsub-section (1)ofsection2oftheCharteredAccountantsAct, 1949; (25) “Commissioner” means the Commissioner of State tax appointed under section 3; (26) “Commissioner in the Board” means the Commissioner referred to in section of the Central Goods and Services Tax Act; (27) “common portal” means the common goods and services tax electronic portal referred to in section146; (28) “common working days” shall mean such days in succession which are not declared as gazetted holidays by the Central Government or the GovernmentofMadhyaPradesh;
56 of1980. HeeUses,feat123A2017 (29)"companysecretary"meansacompany secretaryasdefinedinclause(c)ofsub-section (1)ofsection2oftheCompanySecretariesAct, 1980; (30)“competentauthority”meanssuchauthorityas maybenotifiedbytheGovernment; (31)“compositesupply”meansasupplymadebya taxable persontoarecipientconsistingoftwoor moretaxablesuppliesofgoodsorservicesor both,oranycombinationthereof,whichare naturallybundledandsuppliedinconjunction witheachotherintheordinarycourseofbusiness, oneofwhichisaprincipalsupply; Illustration:Wheregoodsarepackedandtransported withinsurance,thesupplyofgoods,packingmaterials, transportandinsuranceisacompositesupplyandsupply ofgoodsisaprincipalsupply. (32)“consideration”inrelationtothesupplyof goodsorservicesorbothincludes— (a)anypaymentmadeortobemade,whetherin moneyorotherwise,inrespectof,inresponseto,orfor theinducementof,thesupplyofgoodsorservicesor both,whetherbytherecipientorbyanyotherperson butshallnotincludeanysubsidygivenbytheCentral GovernmentoraStateGovernment, (b)themonetaryvalueofanyactorforbearance, inrespectof,inresponseto,orfortheinducementof, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a StateGovernment: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the saidsupply; (33) “continuous supply of goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, 528(129)
528(130) 23of1959. 21of2000. —Feageues,fei12Yt2017 underacontract,whetherornotbymeansofa wire,cable,pipelineorotherconduit,andfor whichthesupplierinvoicestherecipientona regularorperiodicbasisandincludessupplyof suchgoodsastheGovernmentmay,subjectto suchconditions,asitmay,bynotification, specify; (34)“continuoussupplyofservices”meansa supplyofserviceswhichisprovided,oragreedto beprovided,continuouslyoronrecurrentbasis, underacontract,fora periodexceedingthree monthswithperiodicpaymentobligationsand includessupplyofsuchservicesas_the Governmentmay,subjecttosuchconditions,asit may,bynotification,specify; (35)“conveyance”includesavessel,anaircraftand avehicle; (36)“costaccountant”meansacostaccountantas definedinclause(c)ofsub-section(1)ofsection 2oftheCostandWorksAccountantsAct,1959; (37)“Council”meanstheGoodsandServicesTax Councilestablishedunderarticle279Aofthe Constitution; (38)“creditnote”meansadocumentissuedbya registeredpersonundersub-section(1)ofsection 34; (39)“debitnote”meansadocumentissuedbya registeredpersonundersub-section(3)ofsection 34; (40)“deemedexports”meanssuchsuppliesof goodsasmaybenotifiedundersection147; (41) “designated authority” means such authority as may be notified by the Commissioner; (42)“document”includeswrittenorprintedrecord of any sort and electronic record as defined in clause (t) of section of the Information TechnologyAct,2000;
Heeusa,feria12FA2017 (43)“drawback”inrelationtoanygoods manufacturedinIndiaandexported,meansthe rebateofduty,taxor cesschargeableonany importedinputsoronanydomesticinputsorinput servicesusedinthemanufactureofsuchgoods; (44)“electroniccashledger”meanstheelectronic cashledgerreferredtoinsub-section(1)of section49;" (45)“electroniccommerce”meansthesupplyof. goodsorservicesorboth,includingdigital productsoverdigitalorelectronicnetwork; (46)“electroniccommerceoperator”meansany personwhoowns,operatesormanagesdigitalor electronicfacilityorplatformforelectronic commerce; (47)“electroniccreditledger”meanstheelectronic creditledgerreferredtoinsub-section(2)of section49; (48)“exemptsupply”meanssupplyofanygoods orservicesorbothwhichattractsnilrateoftaxor whichmaybewhollyexemptfromtaxunder section11,orundersection6oftheIntegrated GoodsandServicesTaxAct,2017(No.13of 2017)andincludesnon-taxablesupply; (49)“existinglaw”meansanylaw,notification, order,ruleor regulationrelatingtolevyand collectionofduty.ortaxongoodsorservicesor bothpassedormadebeforethecommencementof thisActbytheLegislatureoranyAuthorityor personhavingthepowertomakesuchlaw, 'notification,order,ruleorregulation; (50)“family”means,— (i)thespouseandchildrenoftheperson,and (ii)theparents,grand-parents,brothersandsisters ofthepersoniftheyarewhollyormainly dependentonthesaidperson; (51)“fixedestablishment”meansaplace(other thantheregisteredplaceofbusiness)whichis characterisedbyasufficientdegreeof .permanenceandsuitablestructureintermsof 528(131)
528(132) 80of1976 FeqeUsa,fear124A2017 humanandtechnicalresourcestosupplyservices, ortoreceiveanduseservicesforitsownneeds; (52)“Fund”meanstheConsumerWelfareFund establishedundersection57; (53)“goods’?meanseverykindofmovable propertyotherthanmoneyandsecuritiesbut includesactionableclaim,growingcrops,grass andthingsattachedtoorformingpartoftheland whichareagreedtobeseveredbeforesupplyor underacontractofsupply; (54)“Government”meanstheGovernmentof MadhyaPradesh; (55) “Goods and Services Tax (Compensation to States)Act”meanstheGoodsandServicesTax (CompensationtoStates)Act,2017(No.15of 2017);. (56)“goodsandservicestaxpractitioner"means anypersonwhohasbeenapprovedundersection 48toactassuchpractitioner; (57)"India"meanstheterritoryofIndiaasreferred toinarticle1oftheConstitution,itsterritorial waters,seabedandsub-soilunderlyingsuch waters,continentalshelf,exclusiveeconomiczone oranyothermaritimezoneasreferredtointhe TerritorialWaters,ContinentalShelf,Exclusive EconomicZoneandotherMaritimeZonesAct, 1976,andtheairspaceaboveitsterritoryand territorialwaters; (58)“IntegratedGoodsandServicesTaxAct” meanstheIntegratedGoodsandServicesTaxAct, 2017(No.13of2017); (59)“integratedtax”meanstheintegratedgoods andservicestaxleviedundertheIntegratedGoods andServicesTaxAct; (60)“input”meansanygoodsother thancapital goodsusedorintendedtobe usedbyasupplierin thecourseorfurtheranceofbusiness; (61)“inputservice”meansanyserviceusedor intendedtobeusedbyasupplierinthecourseor furtheranceofbusiness;
HeqIeUsa,fete12YA2017 (62)“InputServiceDistributor”meansanofficeof thesupplierofgoodsorservicesorbothwhich receivestaxinvoicesissuedundersection31 towardsthereceiptofinputservicesandissuesa prescribeddocumentforthepurposesof distributingthecreditofcentraltax,Statetax, integratedtaxorUnionterritorytaxpaidonthe saidservicestoasupplieroftaxablegoodsor servicesorbothhavingthesamePermanent AccountNumberasthatofthesaidoffice; (63)‘inputtax”inrelationtoaregisteredperson, meansthecentraltax,Statetax,integratedtaxor Unionterritorytaxchargedonanysupplyof goodsorservicesorbothmadetohim.and includes—. (a)theintegratedgoodsandservicestaxchargedon importofgoods; (b)thetaxpayableundertheprovisionsofsub- sections(3)and(4)ofsection9; (c)thetaxpayableundertheprovisionsofsub- sections(3)and(4)ofsection 5oftheIntegrated GoodsandServicesTaxAct;or (d)thetaxpayableundertheprovisionsofsub- sections(3)and(4)ofsection9oftheCentral GoodsandServicesTaxAct, butdoesnotincludethe taxpaidunderthecomposition levy; (64)“inputtaxcredit”meansthecreditofinputtax; (65)‘“‘intra-Statesupplyofgoods”shallhavethe samemeaningasassignedtoitinsection8ofthe IntegratedGoodsandServicesTaxAct; (66)“intra-Statesupplyofservices”shallhavethe samemeaningasassignedtoitinsection8ofthe IntegratedGoodsandServicesTaxAct; (67)“invoice”or“taxinvoice”meansthetax invoicereferredtoinsection31; (68)“inwardsupply”inrelationtoaperson,shall meanreceiptofgoodsorservicesorbothwhether bypurchase,acquisitionoranyothermeans,with orwithoutconsideration; 528(133)
528(134)Reaganwsrsa,feats12FA2017 (69)“jobwork”meansanytreatmentorprocess undertakenbyapersonongoodsbelongingto anotherregisteredpersonandtheexpression“job worker”shallbeconstruedaccordingly; (70)“localauthority”means— (a)a“Panchayat”asdefinedinclause(d)of article243oftheConstitution; (b)a“Municipality”asdefinedinclause(e)of article243PoftheConstitution; (c)aMunicipalCommittee,aZilaParishad,a DistrictBoard,andanyotherauthoritylegallyentitled to,orentrustedbytheCentralGovernmentorany StateGovernmentwiththecontrolormanagementof amunicipalorlocalfund; (d)aCantonmentBoardasdefinedinsection3of 41of2006.theCantonmentsAct,2006; (e)aRegionalCounciloraDistrictCouncil constitutedundertheSixthScheduletothe Constitution; (f)aDevelopmentBoardconstitutedunderarticle 371oftheConstitution;or (g)aRegionalCouncilconstitutedunderarticle 371AoftheConstitution; (71)“locationoftherecipientofservices”means,- (a)whereasupplyisreceivedataplaceof businessforwhichtheregistrationhasbeen obtained,the locationofsuchplaceof business; (b)whereasupplyisreceivedataplaceother thantheplaceofbusinessforwhich registrationhasbeenobtained(afixed establishmentelsewhere),thelocationof suchfixedestablishment; (c)whereasupplyisreceivedatmorethan oneestablishment,whethertheplaceof businessorfixedestablishment,the locationoftheestablishmentmostdirectly
Heews,fete12YA2017 concernedwiththereceiptofthesupply; and (d)inabsenceofsuchplaces,thelocationof theusualplaceofresidenceofthe recipient; (72)“locationofthesupplierofservices”means,- (a)whereasupplyismadefromaplaceof businessforwhichtheregistrationhasbeenobtained, thelocationofsuchplaceofbusiness; (b)whereasupplyismadefromapiaceotherthan theplaceofbusinessforwhichregistrationhasbeen obtained(afixedestablishmentelsewhere),the locationofsuchfixedestablishment; (c)whereasupplyismadefrommorethan-one establishment,whethertheplaceofbusinessorfixed establishment,thelocationoftheestablishmentmost directlyconcernedwiththeprovisionsofthesupply; and (d)inabsenceofsuchplaces,thelocationofthe usualplaceofresidenceofthesupplier; (73)“manufacture”meansprocessingofraw materialorinputsinanymannerthatresultsin emergenceofanewproducthavingadistinct name,characteranduseandtheterm “manufacturer”shallbeconstruedaccordingly; (74)“marketvalue”shallmeanthefullamount whicharecipientofasupplyisrequiredtopayin ordertoobtainthegoodsorservicesorbothof likekindandqualityatoraboutthesametimeand atthesamecommerciallevelwheretherecipient andthesupplierarenotrelated; (75)“mixedsupply”meanstwoormoreindividual suppliesofgoodsorservices,oranycombination thereof,madeinconjunctionwitheachotherbya taxablepersonforasinglepricewheresuch supplydoesnotconstituteacompositesupply. Illustration:Asupplyofapackageconsistingofcanned_ foods,sweets,chocolates,cakes,dryfruits,aerateddrinks andfruitjuiceswhensuppliedforasinglepriceisamixed supply.Eachoftheseitemscanbesuppliedseparately andisnotdependentonanyother.Itshallnotbeamixed supplyiftheseitemsaresuppliedseparately; 528(135)
528(136) 59of1988. ReeUsa,fais12YA2017 (76)“money”meanstheIndianlegaltenderorany foreigncurrency,cheque,promissorynote,billof exchange,letterofcredit,draft,payorder, travellercheque,moneyorder,postalorelectronic remittanceoranyotherinstrumentrecognizedby theReserveBankofIndiawhenusedasa considerationtosettleanobligationorexchange withIndianlegaltenderofanotherdenomination butshallnotincludeanycurrencythatisheldfor itsnumismaticvalue; (77)“motorvehicle”shallhavethesamemeaning asassignedtoitinclause(28)ofsection2ofthe MotorVehiclesAct,1988; (78)“non-residenttaxableperson”meansany personwhooccasionallyundertakestransactions involvingsupplyofgoodsorservicesorboth, whetherasprincipaloragentorinanyother capacity,butwhohasnofixedplaceofbusiness orresidenceinIndia; (79)“non-taxablesupply’’meansasupplyofgoods orservicesorbothwhichisnotleviabletotax underthisActorundertheIntegratedGoodsand ServicesTaxAct; (80)‘“non-taxableterritory’meanstheterritory whichisoutsidethetaxableterritory; (81)“notification”meansanotificationpublished intheOfficialGazetteandtheexpressions‘notify’ and‘notified’shallbeconstruedaccordingly; (82)“otherterritory”includesterritoriesotherthan thosecomprisinginaStateandthosereferredto insub-clauses(a)to(e)ofclause(114); (83)“outputtax”inrelationtoataxableperson, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable byhimonreversechargebasis; (84) “outward supply” in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange,
18of2013. 21of1860. HeeUs,fea12YA2017 licence,rental,leaseordisposaloranyother mode,madeoragreedtobemadebysuchperson inthecourseorfurtheranceofbusiness; (85) (86) “person”includes— (a)anindividual; (b)aHinduUndividedFamily; (c)acompany; (d)afirm; (e)aLimitedLiabilityPartnership; (f)anassociationofpersonsorabodyof individuals,whetherincorporatedornot, inIndiaor outsideIndia; (g)anycorporationestablishedbyorunderany CentralAct,StateActorProvincialActora Governmentcompanyasdefinedinclause(45)of section2oftheCompaniesAct,2013; (h)anybodycorporateincorporatedbyorunder| thelawsofacountryoutsideIndia; (i)aco-operativesocietyregisteredunderany law relatingtoco-operativesocieties; (j)alocalauthority; (k)Central.GovernmentoraStateGovernment; (1)societyasdefinedundertheSocieties RegistrationAct,1860; (m)trust;and (n)everyartificialjuridicalperson,notfalling withinanyoftheabove; “placeofbusiness”includes— 528(137)
528(138)HeeUTS,fetta12YA2017 (a)aplacefromwherethebusinessisordinarily carriedon,andincludesawarehouse,agodownorany otherplacewhereataxablepersonstoreshisgoods, suppliesorreceivesgoodsorservicesorboth;or (b)aplacewhereataxablepersonmaintainshis booksofaccount;or (c)aplacewhereataxablepersonisengagedin businessthroughanagent,bywhatevernamecalled; (87).“placeofsupply”meanstheplaceofsupplyas referredtoinChapterVoftheIntegratedGoods andServicesTaxAct; (88)“prescribed’’meansprescribedbyrulesmade underthisActontherecommendationsofthe Council; (89)“principal”meansapersononwhosebehalfan agentcarriesonthebusinessofsupplyorreceipt ofgoodsorservicesorboth; (90)“principalplaceofbusiness”meanstheplace ofbusinessspecifiedastheprincipalplaceof businessinthecertificateofregistration; (91)“principalsupply”meansthesupplyofgoods orserviceswhichconstitutesthepredominant elementofacompositesupplyandtowhichany othersupplyformingpartofthatcomposite supplyisancillary; (92)“properofficer”inrelationtoanyfunctionto beperformedunderthisAct,meansthe Commissionerortheofficer.oftheStatetaxwho isassignedthatfunctionbytheCommissioner; (93)“quarter”shallmeanaperiodcomprisingthree consecutivecalendarmonths,endingonthelast dayofMarch,June,SeptemberandDecemberof acalendaryear; (94)“recipient”ofsupplyofgoodsorservicesor both,means—
FeAISYWea,fea12FA2017528(139)
(a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied; (95) “registered person” means a person who is registered under section but does not include a person having a Unique Identity Number, (96) “regulations” means the regulations made by the Government under this Act on the recommendations of the Council; (97) “removal’’ in relation to goods, means- (a) despatch of the goods for delivery by the supplier thereof or by any other person acting on behaif of such supplier; or (b) collection of the goods by the recipient thereof or by any other person acting on behalf of such recipient; (98) “return” means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder; (99) “reverse charge’’ means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub- section (4) of section 9, or under sub-section (3)
528(140) 42of1956. Reewats,fete12YA2017 orsub-section(4)ofsection5oftheIntegrated GoodsandServicesTaxAct; (100)“RevisionalAuthority”meansanauthority appointedorauthorisedforrevisionofdecisionor ordersasreferredtoinsection108; (101)“Schedule”meansaScheduleappendedtothis Act; (102)“securities”shallhavethesamemeaningas assignedtoitinclause(h)ofsection2ofthe SecuritiesContracts(Regulation)Act,1956; (103)“services”meansanythingotherthangoods, moneyandsecuritiesbutincludesactivities relatingtotheuseofmoneyoritsconversionby cashorbyanyothermode,fromoneform, currencyordenomination,toanotherform, currencyordenominationforwhichaseparate considerationischarged; (104)“State”meanstheStateofMadhyaPradesh; (105)“Statetax”meansthetaxleviedunderthis Act; (106)“supplier”inrelationtoanygoodsorservices orboth,shallmeanthepersonsupplyingthesaid goodsorservicesorbothandshallincludean agentactingassuchonbehalfofsuchsupplierin relationtothegoodsorservicesorbothsupplied; (107)‘taxperiod’’meanstheperiodforwhichthe returnisrequiredtobefurnished; (108)“taxableperson”meansapersonwhois registeredorliabletoberegisteredundersection 22orsection24; (109)“taxablesupply’’meansasupplyofgoodsor servicesorbothwhichisleviabletotaxunderthis Act; (110)“taxableterritory”meanstheterritoryto whichtheprovisionsofthisActapply;
HegreUsa,fea12YA2017528(141) (111) “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means; (112) “turnover in State” means the aggregate value _ of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State by a taxable person, exports of goods or services or both and inter- State supplies of goods or services or both made from the State by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess; (113)“usualplaceofresidence”means— (a)incaseofanindividual,theplacewherehe ordinarilyresides; (b)inothercases,theplacewherethepersonis incorporatedorotherwiselegallyconstituted; (114)“Unionterritory”meanstheterritoryof,- (a)theAndamanandNicobarIslands; (b)Lakshadweep;. (c)DadraandNagarHaveli; ~(d)DamanandDiu; (e)Chandigarh;and (f)otherterritory; Explanation.- For the purposes of this Act, each of the territories specified in sub-clauses (a) to (f) shall be considered to be a separate Union territory. (115) “Union territory tax” means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act;
528(142) HeeUs,ferie12FA2017
(116) “Union Territory Goods and Services Tax Act” means the Union Territory Goods and Services Tax Act, 2017; (117) “valid return” means a return furnished under sub-section (1) of section on which self- assessed tax has been paid in full; (118) “voucher” means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument; (119) “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; (120) words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, the Central Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the same meanings as assigned to them in those Acts. CHAPTERII ADMINISTRATION 3. The Government shall, by notification, appoint the following classes of officers for the purposes of this Act,namely:— (a) Commissioner of State tax, (b) Special Commissioners of State tax, (c) Additional Commissioners of State tax, (d) Joint Commissioners of State tax, aA OfficersunderthisAct.
HereUta,fetish12YA2017 (e)DeputyCommissionersofStatetax, (f)AssistantCommissionersofStatetax,and (g)anyotherclassofofficersasitmaydeemfit: Providedthat,theofficersappointedunderthe MadhyaPradeshVatAct,2002(No.20of2002)shallbe deemedtobetheofficersappointedundertheprovisions ofthisAct. 4.(1)TheGovernmentmay,inadditiontotheofficersas maybenotifiedundersection3,appointsuchpersons asitmaythinkfittobetheofficersunderthisAct. (2)TheCommissionershallhavejurisdictionoverthe wholeoftheState,theSpecialCommissionerand anAdditionalCommissionerinrespectofallor anyofthefunctionsassignedtothem,shallhave jurisdictionoverthewholeoftheStateorwhere theStateGovernmentsodirects,overanylocal areathereof,andallotherofficersshall,subjectto suchconditionsasmaybespecified,have jurisdictionoverthewholeoftheStateorover suchlocalareasastheCommissionermay,by order,specify. 5.(1)Subjecttosuchconditionsandlimitationsasthe Commissionermayimpose,anofficerofStatetax mayexercisethepowersanddischargetheduties conferredorimposedonhimunderthisAct. (2) An officer of State tax may exercise the powers and discharge the duties conferred or imposed. under this Act on any other officer of State tax who is subordinate to him. (3) The Commissioner may, subject to such conditions and limitations as may be specified in this behalf by him, delegate his powers to any other officer who is subordinate to him. (4) Notwithstanding anything contained in __ this section, an Appellate Authority shall not exercise the powers and discharge the duties conferred or imposed on any other officer of State tax. 528(143) Appointmentof officers. Powersofofficers.
528(144) Heewets,feats12SA2017 6. (1) Without prejudice to the provisions of this Act, the officers appointed under the Central Goods and Services Tax Act are authorised to be the proper officers for the purpdses of this Act, subject to such conditions as the Government shall, on the recommendations of the Council, by notification, specify. (2) Subject to the conditions specified in the notification issued under sub-section (1),- (a) where any proper officer issues an order under this Act, he shall also issue an order under the Central Goods and Services Tax Act, as authorised by the said Act under intimation to the jurisdictional officer of central tax; (b) where a proper officer under the Central Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this Act on the same subject matter. (3) Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under this Act, shall not lie before an officer appointed under the Central Goods and Services Tax Act. , CHAPTERIII LEVYANDCOLLECTIONOFTAX 7.(1)ForthepurposesofthisAct,theexpression “supply”includes— (a)allformsofsupplyofgoodsorservicesorboth suchassale,transfer,barter,exchange,license,rental, leaseordisposalmadeoragreedtobemadefora considerationbyapersoninthecourseorfurtheranceof business; (b) import of services for a consideration whether or not inthecourseorfurtheranceofbusiness; (c) the activities specified in Schedule I, made or agreedtobemadewithoutaconsideration;and (d) the activities to be treated as supply of goods or supply ofservices as referred toin Schedule II. Authorisationof officersofcentraltaxas properofficerincertain circumstances. Scopeofsupply.
FeeWaT,feats12FA2017 (2)Notwithstandinganythingcontainedinsub-section (1),— (a)activitiesortransactionsspecifiedinScheduleIII; or (b)suchactivitiesortransactionsundertakenbythe CentralGovernment,aStateGovernmentoranylocal authorityinwhichtheyareengagedaspublicauthorities, asmaybenotifiedbytheGovernmentonthe recommendationsoftheCouncil, shallbetreatedneitherasasupplyofgoodsnora supplyofservices. (3)Subjecttotheprovisionsofsub-sections(1)and(2), theGovernmentmay,ontherecommendationsofthe Council,specify,bynotification,thetransactionsthat aretobetreatedas— (a)asupplyofgoodsandnotasasupplyofservices; or (b)asupplyofservicesandnotasasupplyofgoods. 8.Thetaxliabilityonacompositeoramixedsupply shallbe determinedinthefollowingmanner, namely:— (a)acompositesupplycomprisingtwoormore supplies, one of which is a principal supply, shall be treatedasasupplyofsuchprincipalsupply;and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax. 9. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the Madhya Pradesh goods and services tax on all intra-State supplies of goods or services or both, except om the supply of alcoholic liquor for human consumption, on the value determined under section and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shal] be paid by the taxable person. 528(145) Taxliabilityon compositeandmixed supplies. Levyandcollection.
528(146) Heqgeswstya,feaie12YA2017 (2) The State tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel, shall be levied with effect from such date as may be notified by the Government on_ the recommendationsoftheCouncil. (3)TheGovernmentmay,ontherecommendationsof theCouncil,bynotification,specifycategoriesof supplyofgoodsorservicesorboth,thetaxon whichshallbepaidonreversechargebasisbythe recipientofsuchgoodsorservicesorbothandall theprovisionsofthisActshallapplytosuch recipientasifheisthepersonliableforpayingthe taxinrelationtothesupplyofsuchgoodsor servicesorboth. (4)TheStatetaxinrespectofthesupplyoftaxable goodsorservicesorbothbyasupplier,whoisnot registered,toaregisteredpersonshallbepaidby suchpersononreversechargebasisas_the recipientandalltheprovisionsofthisActshall applytosuchrecipientasifheisthepersonliable ‘forpayingthetaxinrelationtothesupplyofsuch goodsorservicesorboth. (5)TheGovernmentmay,ontherecommendationsof theCouncil,bynotification,specifycategoriesof servicesthe taxon_intra-Statesuppliesofwhich shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supplyofsuchservices: Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:
eaewera,feria12FA2017 Providedfurtherthatwherean_electronic commerceoperatordoesnothaveaphysicalpresence inthetaxableterritoryandalsohedoesnothavea representativeinthesaidterritory,suchelectronic commerceoperatorshallappointapersoninthe taxableterritoryforthepurposeofpayingtaxand suchpersonshallbeliabletopaytax. 10.(1)Notwithstandinganythingtothecontrary containedinthisActbutsubjecttotheprovisionsof sub-sections(3)and(4)ofsection9,aregistered person,whoseaggregateturnoverinthepreceding financialyeardidnotexceedfiftylakhrupeesmayopt topay,inlieuofthetaxpayablebyhim,anamount calculatedatsuchrateasmaybeprescribed,butnot exceeding,- (a)onepercentoftheturnoverinStateincaseof amanufacturer, (b)twoandahalfpercentoftheturnoverinState incaseofpersonsengagedinmakingsupplies referredto inclause(b)ofparagraph6 of ScheduleII,and. (c)halfpercentoftheturnoverinStateincaseof othersuppliers, subjecttosuchconditionsandrestrictionsasmaybe prescribed: ProvidedthattheGovernmentmay,bynotification, increasethesaidlimitoffiftylakhrupeestosuch higheramount,notexceedingonecrorerupees,as maybe recommendedbytheCouncil. (2)Theregisteredpersonshallbeeligibletoopt undersub-section(1),if— (a)heisnotengagedinthesupplyofservicesother thansuppliesreferredtoinclause(b)of paragraph6ofScheduleIT; (b)heisnotengagedinmakinganysupplyofgoods whicharenotleviabletotaxunderthisAct; (c)heisnotengagedinmakinganyinter-State outwardsuppliesofgoods; 528(147) Compositionlevy.
528(148) Reamerwera,feats12A2017
43of1961 (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52;and (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council: Providedthatwheremorethanoneregistered person are having the same Permanent Account Number(issuedundertheIncome-taxAct,1961),the registeredpersonshallnot-beeligibletooptforthe scheme under sub-section (1) unless all such registered personsopttopaytaxunderthatsub-section. (3) The option availed of by a registered person under sub-section (1) shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub-section (1). (4) A taxable person to whom the provisions of sub- section (1) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
- (5) If the proper officer has reasons to believe that a 11. taxable person has paid tax under sub-section (1) despite not being eligible, such person shall, in addition to any tax that may be payable by him under any other provisions of this Act, be liable to a penalty and the provisions of section or section shall, mutatis mutandis, apply for determination of tax and penalty. (1) Where the Government is satisfied that it is necessary in.the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification. Powertogrant exemptionfromtax. Heeusta,fer12Yt2017 (2)WheretheGovernmentissatisfiedthatitis necessaryinthepublicinterestsotodo,itmay,on therecommendationsoftheCouncil,byspecial orderineachcase,undercircumstancesofan exceptionalnaturetobestatedinsuchorder, exemptfrompaymentoftaxanygoodsorservices orbothonwhichtaxisleviable. (3) TheGovernmentmay,ifitconsidersnecessaryor expedientsotodoforthepurposeofclarifyingthe scopeorapplicabilityofanynotificationissued undersub-section(1)ororderissuedundersub- section(2),insertanexplanationinsuch notificationororder,asthecasemaybe,by notificationatanytimewithinoneyearofissueof thenotificationundersub-section(1)ororder undersub-section(2),andeverysuchexplanation shallhaveeffectasifithadalwaysbeenthepart ofthefirstsuchnotificationororder,asthecase maybe. (4)AnynotificationissuedbytheCentral Government,ontherecommendationsofthe Council,undersub-section(1)ofsection11or orderissuedundersub-section(2)ofthe said sectionoftheCentralGoodsandServicesTaxAct shallbedeemedtobeanotificationor,asthecase maybe,anorderissuedunderthisAct. Explanation.—Forthepurposesofthissection,wherean exemptioninrespectof any goodsorservicesorboth fromthewholeorpartofthetaxleviablethereonhasbeen grantedabsolutely,theregisteredpersonsupplyingsuch goodsorservicesorbothshallnotcollectthe.tax,in excessoftheeffectiverate,onsuchsupplyofgoodsor .servicesorboth. CHAPTERIV TIMEANDVALUEOFSUPPLY 528(149) 12. (1)TheliabilitytopaytaxongoodsshallariseattheTimeofsupplyof timeofsupply,asdeterminedinaccordancewiththegoods. provisionsofthissection. 528(150)HereUs,frie12YA2017 (2) The time of supply of goods shall be the earlier of the following dates, namely:- _ (a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to thesupply;or (b)thedateonwhichthesupplierreceivesthe paymentwithrespecttothesupply: Providedthatwherethesupplieroftaxablegoods receivesanamountuptoonethousandrupeesin excessoftheamountindicatedinthetaxinvoice,the timeofsupplytotheextentofsuchexcessamount shall,attheoptionofthesaidsupplier,bethedateof issueofinvoiceinrespectofsuchexcessamount. Explanation1.—Forthepurposesofclauses(a)and (b),“supply”shallbedeemedtohavebeenmadeto‘the extentitiscoveredbytheinvoiceor,asthecasemaybe, thepayment. Explanation2.—Forthepurposesofclause(b),“the dateonwhichthesupplierreceivesthepayment”shallbe thedateonwhichthepaymentisenteredinhisbooksof account or the date on which the payment is credited to hisbankaccount,whicheverisearlier. (3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the followingdates,namely:— (a) the date of the receipt of goods; or (b) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier;or (c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier: AeUsa,fee12YA2017 Providedthatwhereitisnotpossibletodetermine thetimeofsupplyunderclause(a)orclause(b)or clause(c),thetimeofsupplyshallbethedateofentry inthebooksofaccountoftherecipientofsupply. (4)Incaseofsupplyofvouchersbyasupplier,the timeofsupplyshallbe- (a)thedateofissueofvoucher,ifthesupplyis identifiableatthatpoint;or (b)thedateofredemption ofvoucher,inallother cases. (5)Whereitisnotpossibletodeterminethetimeof supplyundertheprovisionsofsub-section(2)or| sub-section(3)orsub-section(4),thetimeof supplyshall— (a)inacasewhereaperiodicalreturnhastobe filed,bethedateonwhichsuchreturnistobefiled;or (b)inanyothercase,bethedateonwhichthetax "is paid. (6)Thetimeofsupplytotheextentitrelatestoan additioninthevalueofsupplybywayofinterest, latefeeorpenaltyfordelayedpaymentofany considerationshallbethedateonwhichthe supplierreceivessuchadditioninvalue. 13.(1)Theliabilitytopaytaxonservicesshallariseat thetimeofsupply,asdeterminedinaccordancewith theprovisionsofthissection.. (2)Thetimeofsupplyofservicesshallbetheearliest ofthefollowingdates,namely:— (a)thedateofissueofinvoicebythesupplier,ifthe invoiceisissuedwithintheperiodprescribedunder 'sub-section(2)ofsection31orthedateofreceiptof payment,whicheverisearlier;or (b).thedateofprovisionofservice,iftheinvoiceis notissuedwithintheperiodprescribedundersub- section(2)ofsection31orthedateofreceiptof payment,whicheverisearlier;or 528(151) Timeofsupplyof services. 528(152)Heewstaa,faa12VA2017 (c)thedateonwhichtherecipientshowsthereceiptof servicesinhisbooksofaccount,inacasewherethe provisionsofclause(a)orclause(b)donotapply: Providedthatwherethesupplieroftaxableservice receivesanamountuptoonethousandrupeesinexcess oftheamountindicatedinthetaxinvoice,thetimeof supplytotheextentofsuchexcessamountshall,atthe optionofthesaidsupplier,bethedateofissueof” invoicerelatingtosuchexcessamount. Explanation.—Forthepurposesofclauses(a)and(b)- (i)thesupplyshallbedeemedtohavebeenmade tothe extentitiscoveredbytheinvoiceor,as thecasemaybe,thepayment; (ii)“thedateofreceiptofpayment”shallbethe dateonwhichthepaymentisenteredinthe booksofaccountofthesupplieror thedateon whichthepaymentiscreditedtohisbank account,whicheverisearlier. (3)Incaseofsuppliesinrespectofwhichtaxispaid orliabletobepaidonreversechargebasis,the timeofsupplyshallbetheearlierofthefollowing dates,namely:— (a)thedateofpaymentasenteredinthebooksof accountoftherecipientorthedateonwhichthe paymentisdebitedinhisbankaccount,whicheveris earlier;or (b)thedateimmediatelyfollowingsixtydaysfrom thedateofissueofinvoiceoranyotherdocument,by whatevernamecalled,inlieuthereofbythesupplier: Providedthatwhereitisnotpossibletodeterminethe timeofsupplyunderclause(a)orclause(b),thetimeof| supplyshallbethedateofentryinthebooksofaccount oftherecipientofsupply: Providedfurtherthatincaseofsupplybyassociated. enterprises,wherethesupplierofserviceislocated outsideIndia,thetimeofsupplyshallbethedateofentry inthebooksofaccountoftherecipientofsupplyorthe dateofpayment,whicheverisearlier. AeaIeUsa,feiss12YA2017 (4)Incaseofsupplyofvouchersbyasupplier,the timeofsupplyshallbe— (a)the dateofissueofvoucher,ifthesupplyis identifiableatthatpoint;or (b)thedateofredemptionofvoucher,inallother cases. (5)Whereitisnotpossibletodeterminethetimeof supplyundertheprovisionsofsub-section(2)or sub-section(3)orsub-section(4),thetimeof supplyshall— (a)inacasewhereaperiodicalreturnhastobe filed,bethedateonwhichsuchreturnistobefiled;or (b)inanyothercase,bethedateonwhichthetax ispaid. (6)Thetimeofsupplytotheextentitrelatestoan additioninthevalueofsupplybywayofinterest, latefeeorpenaltyfordelayedpaymentofany considerationshallbethedateonwhichthe supplier receivessuchadditioninvalue. 14.Notwithstandinganythingcontainedinsection12or section13,thetimeofsupply,wherethereisachange intherateoftaxinrespectofgoodsorservicesor both,shallbedeterminedinthefollowingmanner, namely:— (a)incasethegoodsorservicesorbothhavebeen suppliedbeforethechangeinrateoftax,— (i)wheretheinvoiceforthesamehasbeen issuedandthepaymentisalsoreceivedafterthe changeinrateoftax,thetimeofsupplyshailbethe dateofreceiptofpaymentorthedateofissueof invoice,whicheverisearlier;or (ii)wheretheinvoicehasbeenissuedpriorto thechangeinrateoftaxbutpaymentisreceived afterthechangeinrateoftax,thetimeofsupply shallbethedateofissueofinvoice;or 528(153) Changeinrateoftaxin respectofsupplyof goodsorservices. 528(154) AHIUTA,fears12AA2017 (iii) where the payment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of supply shall be the date of receipt of payment; (b) in case the goods or services or both have been supplied after the change in rate of tax,— (i)wherethepaymentisreceivedafterthe changeinrateoftaxbuttheinvoicehasbeen issuedpriortothechangeinrateoftax,thetimeof supplyshallbethedateofreceiptofpayment;or (ii)wheretheinvoicehasbeenissuedand paymentisreceivedbeforethechangeinrateof tax,thetimeofsupplyshallbethedateofreceipt ofpaymentordateofissueofinvoice,whicheveris earlier;or (iii)wheretheinvoicehasbeenissuedafterthe change in rate of tax but the payment is received before the change in rate of tax, the time of supply shallbethedateofissueofinvoice: Provided that the date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after four working days from the date of change in the rate of tax. Explanation.—For the purposes of this section, “the date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whicheverisearlier. 15. (1) The value of a supply of goods or services or both shall be the transaction. value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include— Valueoftaxable supply. Heeusta,fete12Yt2017 (a)anytaxes,duties,cesses,feesandchargeslevied underanylawforthetimebeinginforceotherthanthis Act,theCentralGoodsandServicesTaxActandthe GoodsandServicesTax(CompensationtoStates)Act,if chargedseparatelybythesupplier; (b)anyamountthatthesupplierisliabletopayin relationtosuchsupplybutwhichhasbeenincurredby therecipientofthesupplyandnotincludedintheprice actuallypaidorpayableforthegoodsorservicesor both; (c)incidentalexpenses,includingcommissionand packing,chargedbythesuppliertotherecipientofa supplyand anyamountchargedforanythingdonebythe supplierinrespectofthesupplyofgoodsorservicesor bothatthetimeof,orbeforedeliveryofgoodsorsupply ofservices; (d)interestorlatefeeorpenaltyfordelayed paymentofanyconsiderationforanysupply;and (e)subsidiesdirectlylinkedtothepriceexcluding subsidiesprovidedbytheCentralGovernmentand StateGovernments. Explanation.—Forthepurposesofthissub-section, theamountofsubsidyshallbeincludedinthevalueof supplyofthesupplierwhoreceivesthesubsidy. (3)Thevalueofthesupplyshallnotincludeany discountwhichisgiven— (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued inrespectofsuchsupply;and (b) after the supply has been effected, if - (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices, and 528(155) 528(156) AeagIeNwatTA,Fae12FA2017 (ii)inputtaxcreditasisattributabletothe discountonthebasisofdocumentissuedbythe supplierhasbeenreversedbytherecipientofthe supply. (4)Wherethevalueofthesupplyofgoodsorservices orbothcannotbedeterminedundersub-section (1),thesameshallbedeterminedinsuchmanner asmaybeprescribed. (5)Notwithstandinganythingcontainedinsub- section(1)orsub-section(4),thevalueofsuch suppliesasmaybenotifiedbytheGovernmenton therecommendationsoftheCouncilshallbe determined insuchmannerasmaybeprescribed. Explanation.-ForthepurposesofthisAct,- (a)personsshallbedeemedtobe“relatedpersons’”’if- (i)suchpersonsareofficersordirectorsof oneanother'sbusinesses; (ii)suchpersonsarelegallyrecognised partnersinbusiness; (iii)suchpersonsareemployerandemployee; (iv)anypersondirectlyorindirectlyowns, controlsorholdstwenty-fivepercent.or moreoftheoutstandingvotingstockor sharesofbothofthem; (v)oneofthemdirectlyorindirectlycontrols theother; (vi)bothofthemaredirectlyorindirectly controlledbyathirdperson; (vii)togethertheydirectlyorindirectlycontrol athirdperson;or (viii)_theyaremembersofthesame family; (b)theterm"person"alsoincludeslegalpersons. (c)personswhoareassociatedinthebusinessofone anotherinthatoneisthesoleagentorsoledistributoror soleconcessionaire,howsoeverdescribed,oftheother, shallbedeemedtoberelated. eagerusta,fetish12YA2017528(157) CHAPTERV INPUTTAXCREDIT 16.(1)Everyregisteredpersonshall,subjecttosuchEligibilityand conditionsandrestrictionsasmaybeprescribedandconditionsfortaking inthemannerspecifiedinsection49,beentitledtoinputtaxcredit. takecreditofinputtaxchargedonanysupplyof goodsorservicesorbothtohimwhichareusedor intendedtobeusedinthecourseorfurtheranceofhis businessandthesaidamountshallbecreditedtothe electroniccreditledgerofsuchperson. (2)Notwithstandinganythingcontainedinthis section,noregisteredpersonshallbeentitledto thecreditof anyinputtaxinrespectofanysupply ofgoodsorservicesorbothtohimunless,— (a)heisinpossessionofataxinvoiceordebitnote _issuedbyasupplierregisteredunderthisAct,orsuch othertaxpayingdocumentsas maybeprescribed; (b)hehasreceivedthegoodsorservicesorboth. Explanation—Forthepurposesofthisclause,it shallbedeemedthattheregisteredpersonhasreceived thegoodswherethegoodsaredeliveredbythe suppliertoarecipientoranyotherpersononthe directionofsuchregisteredperson,whetheractingas anagentorotherwise,beforeorduringmovementof goods,eitherbywayoftransferofdocumentsoftitle togoodsorotherwise; (c)subjecttotheprovisionsofsection41,thetax chargedinrespectofsuchsupplyhasbeenactually paidtotheGovernment,eitherincashorthrough utilisationofinputtaxcreditadmissibleinrespectof thesaidsupply;and (d)hehasfurnishedthereturnundersection39: Providedthatwherethegoodsagainstaninvoice arereceivedinlotsorinstalments,theregistered personshallbeentitledtotakecredituponreceiptof thelastlotorinstalment: ( (158) 43of1961. Reapeasa,feat12FA2017 Providedfurtherthatwherearecipientfailstopay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis,theamounttowardsthevalueofsupplyalong withtaxpayablethereonwithinaperiodofone hundredandeightydaysfromthedateofissueof invoicebythesupplier,anamountequaltotheinput taxcreditavailedbytherecipientshallbeaddedtohis outputtaxliability,alongwithinterestthereon,insuch mannerasmaybeprescribed: Providedalsothattherecipientshallbeentitledto availofthecreditofinputtaxonpaymentmadeby himoftheamounttowardsthevalueofsupplyof goodsorservicesorbothalongwithtax.payable thereon. (3)Wheretheregisteredpersonhasclaimed depreciationonthetaxcomponentofthecostof capitalgoodsandplantandmachineryunderthe provisionsoftheIncome-taxAct,1961,theinput taxcreditonthe saidtaxcomponentshallnotbe allowed. (4)Aregisteredpersonshallnotbeentitledtotake 17, input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. (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) 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 Apportionmentof creditandblocked credits. HAINwT,feat12FA2017 restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. (3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions. in securities, sale of land and, subject to clause (b) of paragraph of Schedule II, sale of building. (4)A banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of sub-section (2), or avail of, every month, an amount equal to fifty per cent of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse: Provided that the option once exercised shall not be withdrawn during the remaining part of the financial year: Provided further that the restriction of fifty 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) Notwithstanding anything contained in sub- section (1) of section and sub-section (1) of section 18; input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles and other conveyances except when they are used— (i) for making the following taxable supplies, namely:— (A) further supply of such vehicles or conveyances; or (B) transportation of passengers; or 528(159) 528(160)Heeweatra,feat12FA2017 (C)impartingtrainingondriving,flying, navigatingsuchvehiclesorconveyances; (ii)fortransportationofgoods; (b)thefollowingsupplyofgoodsorservicesor both:- (i)foodandbeverages,outdoorcatering, beautytreatment,healthservices,cosmeticand plasticsurgeryexceptwherean inwardsupplyof goodsorservicesorbothofaparticularcategoryis usedbyaregisteredpersonformakinganoutward taxablesupplyofthesamecategoryofgoodsor servicesorbothorasanelementofataxable compositeormixedsupply; 'Gi)membershipofaclub,healthandfitness centre; (iti)rent-a-cab,lifeinsuranceandhealth insuranceexceptwhere- (A)theGovernmentnotifiestheserviceswhichare obligatoryforanemployertoprovidetoits employeesunderanylawforthetimebeingin force;or. (B)suchinwardsupplyofgoodsorservicesor bothofaparticularcategoryisusedbyaregistered personformakinganoutwardtaxablesupplyof thesamecategoryofgoodsorservicesorbothor aspartofataxablecompositeormixedsupply; and (iv)travelbenefitsextendedtoemployeeson vacationsuchasleaveorhometravelconcession. (c)workscontractserviceswhensuppliedfor constructionof animmovableproperty(otherthan plantandmachinery)exceptwhereitisaninput serviceforfurthersupplyofworkscontractservice; (d)goodsorservicesorbothreceivedbyataxable personforconstructionofanimmovableproperty (otherthanplantormachinery)onhisownaccount includingwhensuchgoodsorservicesorbothareused inthecourseorfurtheranceofbusiness. ReeUsa,frie12YA2017 Explanation.—Forthepurposesofclauses(c)and (d),theexpression“construction”includesre- construction,renovation,additionsoralterationsor repairs,totheextentofcapitalisation,tothesaid immovableproperty; (e)goodsorservicesorbothonwhichtaxhasbeen paid under section 10; (f)goodsorservicesorbothreceivedbyanon- residenttaxablepersonexceptongoodsimportedby him; (g)goodsorservicesorbothusedforpersonal consumption; (h)goodslost,stolen,destroyed,writtenoffor disposedof bywayofgiftorfreesamples;and (i)anytaxpaidinaccordancewiththeprovisions ofsections74,129and130. (6)TheGovernmentmayprescribethemannerin whichthecreditreferredto insub-sections(1)and (2)maybeattributed. Explanation.—ForthepurposesofthisChapterand ChapterVI,theexpression“plantandmachinery”means apparatus,equipment,andmachineryfixedtoearthby foundationorstructuralsupportthatareusedformaking outwardsupplyofgoodsorservicesorbothandincludes suchfoundationandstructuralsupportsbutexcludes- (i)land,buildingoranyothercivilstructures; (ii)telecommunicationtowers;and (iii)pipelineslaidoutsidethefactorypremises. 18. (1)Subjecttosuchconditionsandrestrictionsasmay beprescribed— (a)apersonwhohasappliedforregistrationunder thisActwithinthirtydaysfromthedateonwhichhe -becomesliabletoregistrationandhasbeengranted suchregistrationshallbeentitledtotakecreditofinput taxinrespectofinputsheldinstockandinputs containedinsemi-finishedorfinishedgoodsheldin stockonthedayimmediatelyprecedingthedatefrom 528(161) Availabilityofcreditin _specialcircumstances. 528(162) FEAUTI,fea12FA2017 whichhebecomesliable topaytaxunderthe provisionsofthisAct; (b)apersonwhotakesregistrationundersub- section(3)ofsection25shallbeentitledtotakecredit ofinputtaxinrespectofinputsheldinstockand inputscontainedinsemi-finishedorfinishedgoods heldinstockonthedayimmediatelyprecedingthe dateofgrantofregistration; (c)whereanyregisteredpersonceasestopaytax undersection10,heshallbeentitledtotakecreditof inputtaxinrespectofinputsheldinstock,inputs containedinsemi-finishedorfinishedgoodsheldin Stockandoncapitalgoodsonthedayimmediately precedingthedatefromwhichhebecomesliableto paytaxundersection9: Providedthatthecreditoncapitalgoodsshallbe reducedbysuchpercentagepointsasmaybe prescribed; (d)whereanexemptsupplyofgoodsorservicesor bothbyaregisteredpersonbecomesataxablesupply, suchpersonshallbeentitledtotakecreditofinputtax inrespectofinputsheldinstockandinputscontained insemi-finishedorfinishedgoodsheldinstock relatabletosuchexemptsupplyandoncapitalgoods exclusivelyusedforsuchexemptsupplyontheday immediatelyprecedingthedatefromwhichsuch supplybecomestaxable: Providedthatthecreditoncapitalgoodsshallbe reducedbysuchpercentagepointsasmaybe prescribed. (2)Aregisteredpersonshallnotbeentitledtotake inputtaxcreditundersub-section(1)inrespectof anysupplyofgoodsorservicesorbothtohim aftertheexpiryofoneyearfromthedateofissue oftaxinvoicerelatingtosuchsupply. (3)Wherethereisachangeintheconstitutionofa registeredpersononaccountofsale,merger, demerger,amalgamation,leaseortransferofthe businesswiththespecificprovisionsfortransfer ofliabilities,thesaidregisteredpersonshallbe allowedtotransfertheinputtaxcreditwhich remainsunutilisedinhiselectroniccreditledgerto ewewera,fete12FA2017528(163) suchsold,merged,demerged,amalgamated, leasedortransferredbusinessinsuchmanneras maybeprescribed. (4)Whereanyregisteredpersonwhohasavailedof inputtaxcreditoptstopaytaxundersection10 or,wherethegoodsorservicesorbothsupplied byhimbecomewhollyexempt,heshallpayan amount,bywayofdebitintheelectroniccredit ledgerorelectroniccashledger,equivalenttothe creditofinputtaxinrespectofinputsheldin stockandinputscontainedinsemi-finishedor finishedgoodsheldinstockandoncapitalgoods, reducedbysuchpercentagepointsasmaybe prescribed,onthedayimmediatelyprecedingthe dateofexercisingofsuchoptionor,asthecase maybe,thedateofsuch exemption: Providedthatafterpaymentofsuchamount,the balanceofinputtaxcredit,ifany,lyinginhiselectronic creditledgershalllapse. (5)Theamountofcreditundersub-section(1)and theamountpayableundersub-section(4)shallbe calculatedinsuch.mannerasmaybeprescribed. (6)Incaseofsupplyofcapitalgoodsorplantand machinery,onwhichinputtaxcredithasbeen taken,theregisteredpersonshallpayanamount equaltotheinputtaxcredittakenonthesaid capitalgoodsorplantandmachineryreducedby suchpercentagepointsasmaybeprescribedor the taxonthetransactionvalueofsuchcapital goodsorplantandmachinerydeterminedunder section15,whicheverishigher: Providedthatwhererefractorybricks,mouldsand dies,jigsandfixturesaresuppliedasscrap,thetaxable personmaypaytaxonthetransactionvalueofsuchgoods determinedundersection15. 19.(1)Theprincipalshall,subjecttosuchconditionsandTakinginputtaxcredit restrictionsasmaybeprescribed,beallowedinputtaxinrespectofinputsand creditoninputssenttoajobworkerforjobwork.capitalgoodssentfor jobwork. 528(164)Regeruss,feat12FA2017 (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)Wherethe inputssentforjobworkarenot
receivedbackbytheprincipalaftercompletionof jobworkorotherwiseorarenotsuppliedfromthe placeofbusinessofthejobworkerinaccordance withclause(a)orclause(b)ofsub-section(1)of section143withinoneyearofbeingsentout,it shallbedeemedthatsuchinputshadbeen suppliedbytheprincipaltothejobworkeronthe daywhenthesaidinputsweresentout: Providedthatwheretheinputsaresentdirectlytoa jobworker,theperiodof oneyearshallbecountedfrom the dateofreceiptofinputsbythejobworker. (4)Theprincipalshall,subjecttosuchconditionsand restrictionsasmaybeprescribed,beallowedinput taxcreditoncapitalgoodssenttoajobworkerfor jobwork. (5)Notwithstandinganythingcontainedinclause(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 broughttohisplaceofbusiness. (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.
Feggeswera,fea12FA2017528(165)
(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. (1) The Input Service Distributor shall distribute the Manner of distribution credit of State tax as State tax or integrated tax and of credit by Input integrated tax as integrated tax or State tax, by way of Service Distributor. issue of document containing the amount of input tax credit being distributed in such manner as may be prescribed. (2) The Input Service Distributor may distribute the credit subject to the following conditions, namely:— (a)thecreditcanbedistributedtotherecipientsof creditagainstadocumentcontainingsuchdetailsas maybeprescribed; (b)theamountofthecreditdistributedshallnot 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 onlytothatrecipient; (d) the credit of tax paid on input services attributable to more than one recipient of credit shall be distributed amongst such recipients to whom the input service is attributable and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current - year, during the said relevant period; (e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the
528(166) FeeUTA,fear12FA2017 turnoverinaStateorturnoverinaUnionterritoryof suchrecipient,duringtherelevantperiod,tothe aggregateoftheturnoverofallrecipientsandwhich areoperationalinthecurrentyear,duringthesaid relevantperiod. Explanation.—Forthepurposesofthissection,— (a)the“relevantperiod”shallbe— (i)iftherecipientsofcredithaveturnover intheirStatesorUnionterritoriesinthe financialyearprecedingtheyearduringwhich creditistobedistributed,thesaidfinancial year;or (ii)ifsomeorallrecipientsofthecreditdo nothaveanyturnoverintheirStatesorUnion territoriesinthefinancialyearprecedingthe yearduringwhichthecreditistobedistributed, thelastquarterforwhichdetailsofsuch turnoverofalltherecipientsareavailable, previoustothemonthduringwhichcreditisto bedistributed; (b)theexpression“recipientofcredit”means thesupplierofgoodsorservicesorbothhavingthe samePermanentAccountNumberasthatofthe InputServiceDistributor; (c)theterm“turnover”,inrelationtoany registeredpersonengagedinthesupplyoftaxable goodsaswellasgoodsnottaxableunderthisAct, meansthevalueofturnover,reducedbythe amountofanydutyortaxleviedunderentry84of ListIoftheSeventhScheduletotheConstitution andentry51and54ofListIIofthesaidSchedule. 21,WheretheInputServiceDistributordistributesthe creditincontraventionoftheprovisionscontainedin section20resultinginexcessdistributionofcreditto oneormorerecipients ofcredit,theexcesscreditso distributedshallberecoveredfromsuchrecipients alongwithinterest,andtheprovisionsofsection73or section74,asthecasemaybe,shall,mutatis mutandis,applyfordeterminationofamounttobe recovered. Mannerofrecoveryof creditdistributedin excess.
eIUsTA,fai12FA2017 CHAPTERVI REGISTRATION 528(167) 22.(1)EverysuppliermakingataxablesupplyofgoodsPersonsliablefor orservicesorbothintheStateshallbeliabletoberegistration. registeredunderthisActifhisaggregateturnoverina financialyearexceeds twentylakhrupees: Providedthatwheresuchpersonmakestaxable suppliesofgoodsorservicesorbothfromanyofthe specialcategoryStates,heshallbeliabletoberegistered ifhisaggregateturnoverinafinancialyearexceedsten lakhrupees. (2)Everypersonwho,onthedayimmediately precedingtheappointedday,isregisteredorholds alicenseunderanexistinglaw,shallbeliableto beregisteredunderthisActwitheffectfromthe appointedday. (3)Whereabusinesscarriedon byataxableperson registeredunderthisActistransferred,whether onaccountofsuccessionorotherwise,toanother personasagoingconcern,thetransfereeorthe successor,asthecasemaybe,shallbeliabletobe registeredwitheffectfromthedateofsuch transferorsuccession. (4)Notwithstandinganythingcontainedinsub- sections(1)and(3),inacaseoftransferpursuant tosanctionofaschemeoranarrangementfor amalgamationor,as thecasemaybe,de-merger oftwoormorecompaniespursuanttoanorderof aHighCourt,Tribunalorotherwise,thetransferee shallbeliabletoberegistered,witheffectfrom thedateonwhichtheRegistrarofCompanies issuesacertificateofincorporationgivingeffect tosuchorderoftheHighCourtorTribunal. Explanation.—Forthepurposesofthissection,— (i)theexpression “aggregateturnover”shallincludeall suppliesmadebythetaxableperson,whetheronhisown accountormadeonbehalfofallhisprincipals; (ii)thesupplyofgoods,aftercompletionofjobwork,by aregisteredjobworkershallbetreatedasthesupplyof
528(168)Feageywera,feat12FA2017 goodsbytheprincipalreferredtoinsection143,andthe valueofsuchgoodsshallnotbeincludedintheaggregate turnoveroftheregisteredjobworker,; (iii)theexpression“specialcategoryStates”shallmean theStatesasspecifiedinsub-clause(g)ofclause(4)of article279AoftheConstitution. 23.(1)ThefollowingpersonsshallnotbeliabletoPersonsnotliablefor registration,namely:—registration. (a)anypersonengagedexclusivelyinthebusinessof supplyinggoodsorservicesorboththatarenotliableto taxorwhollyexemptfromtaxunderthisActorunderthe IntegratedGoodsandServicesTaxAct; (b)anagriculturist,totheextentofsupplyofproduceout ofcultivationofland. (2)TheGovernmentmay, ontherecommendationsof theCouncil,bynotification,specifythecategory ofpersonswho maybeexemptedfromobtaining registrationunderthisAct. 24.Notwithstandinganythingcontainedinsub-section(1)Compulsory ofsection22,thefollowingcategoriesofpersonsshallregistrationincertain berequiredtoberegisteredunderthisAct,-cases. (i)personsmakinganyinter-Statetaxablesupply; (ii)casualtaxablepersonsmakingtaxable supply; (iii)personswhoarerequiredtopaytaxunderreverse charge;, (iv)personwhoarerequiredtopaytaxundersub-section (5)ofsection9; (v)non-residenttaxablepersonsmakingtaxable supply; (vi)personswhoarerequiredtodeducttaxundersection 51,whetherornotseparatelyregisteredunderthisAct; (vii)personswhomaketaxablesupplyofgoodsor services or both on behalf of other taxable persons whetherasanagentorotherwise; (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,
HeeUsT,fee12YA2017 throughsuchelectroniccommerceoperatorwhois requiredto collecttaxatsourceundersection52; (x)everyelectroniccommerceoperator; (xi)everypersonsupplyingonlineinformationanddata baseaccessorretrievalservicesfromaplaceoutsideIndia toapersoninIndia,otherthanaregisteredperson;and (xii)suchotherpersonorclassofpersonsasmaybe notifiedbytheGovernmentontherecommendationsof. theCouncil. 25.(1)Everypersonwhoisliabletoberegisteredunder section22orsection24shallapplyforregistration withinthirtydaysfromthedateonwhichhebecomes liable toregistration,insuchmannerandsubjectto suchconditionsasmaybeprescribed: Providedthatacasualtaxablepersonoranon-resident taxablepersonshallapplyforregistrationatleastfive dayspriortothecommencementofbusiness. Explanation.-Everypersonwhomakesasupplyfrom theterritorialwatersofIndiashallobtainregistrationin theStatewherethenearestpointoftheappropriate baselineislocated. .(2)ApersonseekingregistrationunderthisActshall begrantedasingleregistration: Providedthatapersonhavingmultiplebusiness verticalsintheStatemaybegrantedaseparate registrationforeachbusinessvertical,subjecttosuch conditionsasmaybeprescribed. (3)Aperson,thoughnotliabletoberegisteredunder section or section may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall applytosuchperson. (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. Procedurefor registration. 528(169)
528(170) 43.of1961. 46of1947. Heagewera,feat12A2017 (5)Whereapersonwhohasobtainedorisrequiredto obtainregistrationinaStateorUnionterritoryin respectof anestablishment,hasanestablishment. inanotherStateorUnionterritory,thensuch establishmentsshallbetreatedasestablishments ofdistinctpersonsforthe purposesofthisAct. (6)EverypersonshallhaveaPermanentAccount NumberissuedundertheIncome-taxAct,1961in ordertobeeligibleforgrantofregistration: Providedthatapersonrequiredtodeducttaxunder section51mayhave,inlieuofaPermanentAccount Number,aTaxDeductionandCollectionAccount NumberissuedunderthesaidActinordertobeeligible forgrantofregistration. (7)Notwithstandinganythingcontainedinsub- section(6),anon-residenttaxablepersonmaybe grantedregistrationundersub-section(1)onthe basisofsuchotherdocumentsasmaybe prescribed. (8)Whereapersonwhoisliabletoberegistered underthisActfailstoobtainregistration,the properofficermay,withoutprejudicetoany actionwhichmaybetakenunderthisActorunder anyotherlawforthetimebeinginforce,proceed toregistersuchpersoninsuchmannerasmaybe prescribed. (9)Notwithstandinganythingcontainedin sub- section(1),— (a)anyspecialisedagencyoftheUnitedNations OrganisationoranyMultilateralFinancialInstitution andOrganisationnotifiedundertheUnitedNations (PrivilegesandImmunities)Act,1947,Consulateor Embassyofforeigncountries;and (b)anyotherpersonorclassofpersons,asmaybe notifiedbytheCommissioner, shallbegrantedaUniqueIdentityNumberinsuch mannerandforsuchpurposes,includingrefundoftaxes onthenotifiedsuppliesofgoodsorservicesor.both receivedbythem,asmaybeprescribed.
Feaggewsrsa,fetie12FA2017528(171)
(10) The registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed. (11) A certificate of registration shall be issued in such form and with effect from such date as may be prescribed. (12) A registration or a Unique Identity Number shall be deemed to have been granted after the expiry of the period prescribed under sub-section (10), if no deficiency has been communicated to the applicant within that period. 26.(1) The grant of registration or the Unique Identity Number under the Central Goods and Services Tax Act shall be deemed to be a grant of registration or the Unique Identity Number under this Act subject to the condition that the application for registration or the Unique Identity Number has not been rejected under this Act within the time specified in sub-section (10) of section 25. _ , (2) Notwithstanding anything contained in sub- section (10) of section 25, any rejection of application for registration or the Unique Identity Number under the Central Goods and Services Tax Act shall be deemed to be a rejection of application for registration under this Act. 27. (1) The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier and such person shall - make taxable supplies only after the issuance of the certificate of registration: Provided that the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceedingninetydays. (2) A casual taxable person or a non-resident taxable person shall, at the time of submission of Deemedregistration. Specialprovisions relating to casual taxable person and non- resident taxable person.
528(172)eaeUTA,fers12VA2017 applicationforregistrationundersub-section(1) ofsection25,makeanadvancedepositoftaxin anamountequivalenttotheestimatedtaxliability ofsuchpersonfortheperiodforwhichthe registrationissought: Providedthatwhereanyextensionoftimeissought -undersub-section(1),suchtaxablepersonshalldepositan additionalamountoftaxequivalenttotheestimatedtax liabilityofsuchpersonfortheperiodforwhichthe extensionissought. (3)Theamountdepositedundersub-section(2)shall becreditedtotheelectroniccashledgerofsuch personandshallbeutilisedinthemanner providedundersection49. 28.(1)EveryregisteredpersonandapersontowhomaAmendmentof UniqueIdentityNumberhasbeenassignedshallregistration. informtheproperofficerofanychangesin’the informationfurnishedatthetimeofregistrationor subsequentthereto,insuchformandmannerand withinsuchperiodasmaybeprescribed. (2)Theproperofficermay,onthebasisof informationfurnishedundersub-section(1)oras ascertainedbyhim,approveorrejectamendments intheregistrationparticularsinsuchmannerand withinsuchperiodasmaybeprescribed: Providedthatapprovaloftheproperofficershall notberequiredinrespectofamendmentofsuch particularsasmaybeprescribed: Providedfurtherthattheproperofficershallnot rejecttheapplicationforamendmentintheregistration particularswithoutgivingthepersonanopportunityof beingheard. (3)Anyrejectionorapprovalofamendmentsunder theCentralGoodsandServicesTaxActshallbe deemedtobearejectionorapprovalunderthis Act. 29.(1)Theproperofficermay,eitheronhisownmotionCancellationof oronanapplicationfiledbytheregisteredpersonorregistration.
Heagerusraa,feat12FA2017528(173) byhislegalheirs,incaseofdeathofsuchperson, canceltheregistration,insuchmannerandwithin suchperiodasmaybeprescribed,havingregardtothe circumstanceswhere,— (a)thebusinesshasbeendiscontinued,transferred fullyforanyreasonincludingdeathoftheproprietor, amalgamatedwithotherlegalentity,demergedor otherwisedisposedof;or (b)thereisanychangeintheconstitutionofthe business;or (c)thetaxableperson,otherthantheperson registeredundersub-section(3)ofsection25,isno longerliabletoberegisteredundersection22or section24. (2)Theproperofficermaycanceltheregistrationofa personfromsuchdate,includinganyretrospective date,ashemaydeemfit,where,— (a)aregisteredpersonhascontravenedsuch provisionsoftheActortherulesmadethereunderas maybeprescribed;or (b)apersonpayingtaxundersection10hasnot furnishedreturnsforthreeconsecutivetaxperiods;or (c)anyregisteredperson,otherthan aperson specifiedinclause(b),hasnotfurnishedreturnsfora continuousperiodofsixmonths;or (d)anypersonwhohastakenvoluntaryregistration undersub-section(3)ofsection25hasnotcommenced businesswithinsixmonthsfromthedateof registration;or (e)registrationhasbeenobtainedbymeansof fraud,wilfulmisstatementorsuppressionoffacts: Providedthattheproperofficershallnot canceltheregistrationwithoutgivingtheperson anopportunityofbeingheard.
528(174)eagerwes,feat12FA2017
(3) The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. (4)ThecancellationofregistrationundertheCentral GoodsandServicesTaxActshallbedeemedto beacancellationofregistrationunderthisAct. (5)Everyregisteredpersonwhoseregistrationis cancelledshallpayanamount,bywayofdebitin- theelectroniccreditledgerorelectroniccash ledger,equivalenttothecreditofinputtaxin respectofinputsheldinstockandinputs| containedinsemi-finishedorfinishedgoodsheld instockorcapitalgoodsorplantandmachinery onthedayimmediatelyprecedingthedateofsuch cancellationortheoutputtaxpayableonsuch goods,whicheverishigher,calculatedinsuch mannerasmaybeprescribed: Providedthatincaseofcapitalgoodsorplantand machinery,thetaxablepersonshallpayanamountequal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15,whicheverishigher. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. 30. (1) Subject to such conditions as may be prescribed, Revocation of any registered person, whose registration is cancelled cancellation of by the proper officer on his own motion, may apply to registration. such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order. (2) The proper officer may, in such manner and within such period as may be prescribed, by order,
Heewatts,fei12A2017 528(175)
either revoke cancellation of the registration or rejecttheapplication: Provided that the application for revocation of cancellation of registration shall not be rejected unless the _applicant has been given an opportunity of being heard. (3) The revocation of cancellation of registration under the Central Goods and Services Tax Act shall be deemed to be a revocation of cancellation of registration under this Act. CHAPTERVII TAXINVOICE,CREDITANDDEBITNOTES 31.(1)Aregisteredpersonsupplyingtaxablegoodsshall, beforeoratthetimeof- (a)removalofgoodsforsupplytotherecipient, wherethesupplyinvolvesmovementofgoods;or (b)deliveryofgoodsormakingavailablethereof totherecipient,inanyothercase, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed: Provided that the Government may, on_ the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed. (2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed: Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which— Taxinvoice.
(176) HeAIe UAT, Pea YA
(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. (3) Notwithstanding anything contained in sub- sections (1) and (2)}— (a) a registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him; (b) a registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed; (c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 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,
HeerUsa,fetta12YA2017 528(177)
(f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both; (g) a registered person who is liable to pay tax under sub- section (3) or sub-section (4) of section shall issue a payment voucher at the time of making payment to the supplier. (4)In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received. (5) Subject to the provisions of clause (d) of sub- section (3), in case of continuous supply of services,— (a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment, (b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of servicereceivesthepayment, (c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event. (6) In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation. (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.
528(178) Heqggmeywera,fete12SA2017 Explanation.—Forthepurposesofthissection,the expression“taxinvoice”shallincludeanyrevisedinvoice issuedbythesupplierinrespectofasupplymadeearlier. 32. (1)Apersonwhoisnotaregisteredpersonshallnot collectinrespectofanysupplyofgoodsorservicesor bothanyamountbywayoftaxunderthisAct. (2)Noregisteredpersonshallcollecttaxexceptin 33. 34. accordancewiththeprovisionsofthisActorthe rulesmadethereunder. Notwithstandinganythingcontainedin thisActorany otherlawforthetimebeinginforce,whereany supplyismadeforaconsideration,everypersonwho isliabletopaytaxforsuchsupplyshallprominently indicateinalldocumentsrelatingtoassessment,tax invoiceandotherlikedocuments,theamountoftax whichshallformpartofthepriceatwhichsuch supplyismade. (1)Whereataxinvoicehasbeenissuedforsupplyof anygoodsorservicesorbothandthetaxablevalueor taxchargedinthattaxinvoiceisfoundtoexceedthe taxablevalueortaxpayableinrespectofsuchsupply, orwherethegoodssuppliedarereturnedbythe recipient,orwheregoodsorservicesorbothsupplied arefoundtobedeficient,theregisteredperson,who hassuppliedsuchgoodsorservicesorboth,mayissue totherecipientacreditnotecontainingsuch particularsasmaybeprescribed. (2)Anyregisteredpersonwhoissuesacreditnotein relationtoasupplyofgoodsorservicesorboth shalldeclarethedetailsofsuchcreditnoteinthe returnforthemonthduringwhichsuchcreditnote hasbeenissuedbutnotlaterthanSeptember followingtheendofthefinancialyearinwhich suchsupplywasmade,orthedateoffurnishingof therelevantannualreturn,whicheverisearlier, andthe taxliabilityshallbeadjustedinsuch mannerasmaybeprescribed: Providedthatnoreductioninoutputtaxliabilityofthe suppliershallbepermitted,iftheincidenceoftaxand interestonsuchsupplyhasbeenpassedontoanyother person. Prohibitionof unauthorisedcollection— oftax Amountoftaxtobe indicatedintaxinvoice andotherdocuments. Creditanddebitnotes.
Hemeusta,fel12YA2017 528(179)
(3) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed. (4) Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare the details of such debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted in such manrier as may be prescribed. Explanation.—For the purposes of this Act, the - expression “debit note” shall include a supplementary invoice. CHAPTERVIII ACCOUNTS AND RECORDS 35, (1) Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of- (a) production or manufacture of goods; (b) inward and outward supply of goods or services or both; (c) stock of goods; (d) input tax credit availed, (e) output tax payable.and paid; and (f) such other particulars as may be prescribed: Provided that where more than one place of business is specified in the certificate of registration, the accounts, relating to each place of business shall be kept at such places of business: Provided further that the registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed. (2) Every owner or operator of warehouse or godown or any other place used for storage of goods and Accountsandother records.
528(180) ReeUsa,fer12YA2017 everytransporter,irrespectiveofwhetherheisa registeredpersonornot,shallmaintainrecordsof theconsigner,consigneeandotherrelevantdetails ofthegoodsinsuchmannerasmaybeprescribed. (3)TheCommissionermaynotifyaclassoftaxable personstomaintainadditionalaccountsor documentsforsuchpurposeasmaybespecified therein. (4)WheretheCommissionerconsidersthatanyclass oftaxablepersonsisnotinapositiontokeepand maintainaccountsinaccordancewiththe provisionsofthissection,hemay,forreasonsto berecordedinwriting,permitsuchclassof. taxablepersonstomaintainaccountsinsuch .Mannerasmaybeprescribed. (5)Everyregisteredpersonwhoseturnoverduringa financialyearexceedstheprescribedlimit shall gethisaccountsauditedbyacharteredaccountant oracostaccountantandshallsubmitacopyofthe auditedannualaccounts,thereconciliation statementundersub-section(2)ofsection44and suchotherdocumentsinsuchformandmanneras maybeprescribed. (6)Subjecttotheprovisionsofclause(h)ofsub- section(5)ofsection17,wheretheregistered personfailstoaccountforthegoodsorservicesor bothinaccordancewiththeprovisionsofsub- section(1),theproperofficershalldeterminethe amountoftaxpayableonthegoodsorservicesor boththatarenotaccountedfor,asifsuchgoodsor servicesorbothhadbeensuppliedbysuchperson andtheprovisionsofsection73orsection74,as thecasemaybe,shall,mutatismutandis,applyfor determinationofsuchtax. 36.Everyregisteredpersonrequiredtokeepandmaintain books of account or other records in accordance with theprovisionsofsub-section(1)ofsection35shall ‘retainthemuntiltheexpiryofseventytwomonths from.theduedateoffurnishingofannualreturnfor. theyearpertainingtosuchaccountsandrecords: Providedthataregisteredperson,whoisapartytoan appealorrevisionoranyotherproceedingsbeforeany Period.ofretentionof accounts.
Heausta,feria12FA2017528(181)
Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him or by the Commissioner, or is under investigation for an offence under Chapter XIX, shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of one year after final disposal of such appeal or revision or proceedings or investigation, or for the. period specified above, whichever is later. CHAPTERIX RETURNS 37.(1) Every registered person, other than an Input Service Distributor, a non-resident taxable person and a person paying tax under the provisions of section or section or section 52, shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period and such details shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed: Provided that the registered person shall not be allowed to furnish the details of outward supplies during the period from the eleventh day to the fifteenth day of the month succeeding the tax period: Provided further that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein: Provided also that any extension of time limit notified by the Commissioner of central tax shall be deemed to be notified by the Commissioner. (2)Every registered person who has-been communicated the details under sub-section (3) of section or the details pertaining to inward supplies of Input Service Distributor under sub- section (4) of section 38, shall either accept or Furnishingdetailsof outwardsupplies.
528(182) HemeUsa,fetish12YA2017|
reject the details so communicated, on or before the seventeenth day, but not before the fifteenth day, of the month succeeding the tax period and the details furnished by him under sub-section (1) shall stand amended accordingly. (3) Any registered person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched under section or section 43, shall, upon discovery of any error or omission therein, rectify such error or omission in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for suchtaxperiod: Providedthatnorectificationoferroror omission in respect of the details furnished under sub- section (1) shall be allowed after furnishing of the return under section for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return,whicheverisearlier. Explanation.—For the purposes of this Chapter, the expression “details of outward supplies” shall include details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during any tax period. 38. (1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section or section or section 52, shall verify, validate, -modify or delete, if required, the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section to prepare the details of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have not been declared by the supplier under sub-section (1) of section 37. (2) Every registered person, other than an Input Service Distributor or a non-resident taxable Furnishingdetailsof inwardsupplies. 5lof1975
AeqgeUstaa,fetim12YA2017 528(183)
person or a person paying tax under the provisions of section or section or section 52, shall furnish, electronically, the details of inward supplies of taxable goods or services or both, including inward supplies of goods or services or both on which the tax is payable on reverse charge basis under this Act and inward supplies of goods or services or both taxable under the Integrated Goods and Services Tax Act or on which integrated goods and services tax is payable under section of the Customs Tariff Act, 1975, and credit or debit notes received in respect of such supplies during a tax period after the tenth day but on or before the fifteenth day of the month — succeeding the tax period in such form and manner as may be prescribed: Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may bespecifiedtherein: Provided further that any extension of time limit notified by the Commissioner of central tax shall be _ deemed to be notified by the Commissioner. (3) The details of supplies modified, deleted or included by the recipient and furnished under sub- section (2) shall be communicated to the supplier concerned in such manner and within such time as maybeprescribed. (4) The details of supplies modified, deleted or included by the recipient in the return furnished under sub-section (2) or sub-section (4) of section shall be communicated to the supplier concerned in such manner and within such time as maybeprescribed. (5) Any registered person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched under section or section 43, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if
528(184) HeeWITS,feat12FA2017
any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period: Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after furnishing of the return under section for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier. 39. (1) Every registered person, other than an Input ServiceDistributororanon-residenttaxablepersonor apersonpayingtaxundertheprovisionsofsection10 orsection51orsection52shall,foreverycalendar monthorpartthereof, furnish,insuchformand mannerasmaybeprescribed,areturn,electronically, ofinwardandoutwardsuppliesofgoodsorservices orboth,inputtaxcreditavailed,taxpayable,taxpaid and such other particulars as may be prescribed on or before the twentieth day of the month succeeding such calendarmonthorpartthereof. (2)Aregisteredpersonpayingtaxunderthe provisionsofsection10shall,foreachquarteror part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter. (3) Every registered person required to deduct tax at _ source under the provisions of section shall furnish, in such form and manner as may be prescribed, a return, electronically, for the month in which such deductions have been made within ten daysafterthe end of suchmonth. (4) Every taxable person registered as an Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a_ return, electronically, within thirteen days after the end of suchmonth. (5) Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, Furnishingofreturns.
Heerwad,fete12FA2017528(185)
in such form and manner as may be prescribed, a return, electronically, within twenty days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub-section (1) of section 27, whichever is earlier. (6) The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein: Provided that any extension of time limit notified by the Commissioner of central tax shall be deemed to be notified by the Commissioner. (7) Every registered person, who is required to furnish a return under sub-section (1) or sub- section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return. (8) Every registered person who is required to furnish a return under sub-section (1) or sub-section (2) shall furnish a return for every tax period whether or not any supplies of goods or services or both have been made during such tax period. (9) Subject to the provisions of sections and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) sub- section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, subject to payment of interest under this Act: Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for
528(186) 51of1975. FeeUsa,FeAl12FA2017 furnishingofreturnforthemonthofSeptemberorsecond quarterfollowingtheendofthefinancialyear,orthe actualdateoffurnishingofrelevantannualreturn, whicheverisearlier. (10)Aregisteredpersonshallnotbeallowedto 40. 41. 42. furnishareturnforataxperiodifthereturnfor anyoftheprevioustaxperiodshasnotbeen _furnishedbyhim: Everyregisteredpersonwhohasmadeoutward suppliesintheperiodbetweenthedateonwhichhe becameliabletoregistrationtillthedateonwhich registrationhasbeengrantedshalldeclarethesamein thefirstreturnfurnishedbyhimaftergrantof registration. (1)Everyregisteredpersonshall,subjecttosuch conditionsandrestrictionsasmaybeprescribed,be entitledtotakethecreditofeligibleinputtax,asself- assessed,inhis returnandsuchamountshallbe creditedonaprovisionalbasistohiselectroniccredit ledger. (2)Thecreditreferredtoinsub-section(1)shall beutilisedonlyforpaymentofself-assessed outputtaxasperthereturnreferredtointhesaid sub-section. (1)Thedetailsofeveryinwardsupplyfurnishedbya registeredperson(hereafterinthissectionreferredto asthe“recipient”)forataxperiodshall,insuch mannerandwithinsuchtimeasmaybeprescribed,be matched— (a)withthecorrespondingdetailsofoutward supplyfurnishedbythecorrespondingregistered person(hereafterinthissectionreferredtoasthe “supplier”) in his valid return for the same tax period oranyprecedingtaxperiod; (b)withtheintegratedgoodsandservicestaxpaid under section of the Customs Tariff Act, in respectofgoodsimportedbyhim;and FirstReturn. Claimofinputtax© creditandprovisional acceptancethereof. Matching,reversaland reclaimofinputtax .\ credit.
meageeUstaa,fee12YA2017 528(187)
51of1975 (c) for duplication of claims of input tax credit. (2) The claim of input tax credit in respect of invoices or debit notes relating to inward supply that match with the details of corresponding outward supply or with the integrated goods and services tax paid under section of the Customs Tariff Act, in respect of goods imported by him shall be finally accepted and such acceptance shall be communicated, in such manner as may be prescribed, to the recipient. (3)Wheretheinputtaxcreditclaimedbyarecipient in respect of an inward supply is in excess of the tax declared by the supplier for the same supply or the outward supply is not declared by the supplier in his valid returns, the discrepancy shail be communicated to both such persons in such manner as may be prescribed. (4) The duplication of claims of input tax credit shall be communicated to the recipient in such manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the supplier in his valid return for .the ‘month in which discrepancy is communicated shall be added to the output tax liability of the recipient, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. (6) The amount claimed as input tax credit that is found to be in excess on account of duplication of claims shall be added to the output tax liability of the recipient in his return for the month in which the duplication is communicated. (7) The recipient shall be eligible to reduce, from his output tax liability, the amount added under sub- section (5), if the supplier declares the details of the invoice or debit note in his valid return within the time specified in sub-section (9) of section 39.
528(188)HemeUsa,fear12FA2017
(8) A recipient in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section on the amount so added from the date of availing of credit till the corresponding additions are made under the said sub-sections. (9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to the recipient by crediting the amount in the corresponding head of his electronic cash ledger in such manner as may be prescribed: Provided that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the supplier. (10) The amount reduced from the output tax 43. liability in contravention of the provisions of sub- section (7) shall be added to the output tax liability of the recipient in his return for the month in which such contravention takes place and such recipient shall be liable to pay interest on the amount so added at the rate specified in sub- section (3) of section 50. (1) The details of every credit note relating to outward supply furnished by a registered person (hereafter in this section referred to as the “supplier”) for a tax period shall, in such manner and within such time as maybeprescribed,bematched— (a) with the corresponding reduction in the claim for input tax credit by the corresponding registered person (hereafter in this section referred to as the “recipient”) in his valid return for the same tax period or any subsequent tax period; and (b) for duplication of claims for reduction in output tax liability. ~ (2) The claim for reduction in output tax liability by the supplier that matches with the corresponding Matching, reversal and - reclaim of reduction in output tax liability.
Hepusa,fetis12YA2017528(189)
reduction in the claim for input tax credit by the recipient shall be finally accepted and communicated, in such manner as may be prescribed, tothe supplier. (3) Where the reduction of output tax liability in respect of outward supplies exceeds the corresponding reduction in the claim for input tax credit or the corresponding credit note is not declared by the recipient in his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be prescribed. (4) The duplication of claims for reduction in output tax liability shall be communicated to the supplier in such manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the recipient in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. (6) The amount in respect of any reduction in output tax liability that is found to be on account of duplication of claims shall be added to the output tax liability of the supplier in his return for the month in which such duplication is communicated. (7) The supplier shall be eligible to reduce, from his output tax liability, the amount added under sub- section (5) if the recipient declares the details of the credit note in his valid return within the time specified in sub-section (9) of section 39, (8) A supplier in whose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under sub-section (1) of section in respect of the amount so added from the date of such claim for reduction in the output tax _
528(190) HeeUIT,fea12FA2017
liability till the corresponding additions are made under the said sub-sections. (9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to the supplier by crediting the amount in the corresponding head of his electronic cash ledger in such manner as may be prescribed: Provided that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the recipient. (10) The amount reduced from output tax liability 44, incontraventionoftheprovisionsofsub-section (7)shallbeaddedtotheoutputtaxliabilityofthe supplier in his return for the month in which such contravention takes place and such supplier shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 50. (1) Every registered person, other than an Input Service Distributor, a person paying tax under section or section 52, a casual taxable person and a non- resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financialyear. (2) Every registered person who is required to get his 45. accounts audited in accordance with the provisions of sub-section (5) of section shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed. Every registered person who is required to furnish a return under sub-section (1) of section and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation Annualreturn. Finalreturn.
46. 47. HeeUs,feals12YA2017 or date of order of cancellation, whichever is later, in such form and manner as may be prescribed. Wherearegisteredpersonfailstofurnishareturn undersection39orsection44orsection45,anotice shallbeissuedrequiringhimtofurnishsuchreturn withinfifteendaysinsuchformandmannerasmay beprescribed. (1)Anyregisteredpersonwhofailstofurnishthe detailsofoutwardorinwardsuppliesrequiredunder section37orsection38orreturnsrequiredunder section39orsection45bytheduedateshallpaya latefeeofonehundredrupeesforeverydayduring whichsuchfailurecontinuessubjecttoamaximum amountoffivethousandrupees.| (2)Anyregisteredpersonwhofailstofurnishthe 48. returnrequiredundersection44bytheduedate shallbeliabletopayalatefeeofonehundred rupeesforeverydayduringwhichsuchfailure continuessubjecttoamaximumofanamount calculatedataquarterpercentofhisturnoverin theState. (1)Themannerofapprovalofgoodsandservicestax practitioners,theireligibilityconditions,dutiesand obligations,mannerofremovalandotherconditions relevant for their functioning shall be such as may be. prescribed. (2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section and the return under section or section or section in such manner as may be prescribed. (GB) Notwithstanding anything contained in sub- section (2), the responsibility for correctness of any particulars furnished in the return or other details filed by the goods and services tax practitioners shall continue to rest with the registered person on whose behalf such return and detailsarefurnished. 528(191) Noticetoreturn defaulters. Levyoflatefee. Goodsandservicestax practitioners.
528(192)HeeUsa,fee12FA2017 CHAPTERX PAYMENTOFTAX 49.(1)Everydepositmadetowardstax,interest,penalty,Payment oftax, feeoranyotheramountbyapersonbyinternetinterest,penaltyand bankingorbyusingcreditordebitcardsorNationalotheramounts. ElectronicFundTransferorRealTimeGross Settlementorbysuchothermodeandsubjecttosuch conditionsandrestrictionsasmaybeprescribed,shall. becreditedtotheelectroniccashledgerofsuch persontobemaintainedinsuchmannerasmaybe prescribed. (2)Theinputtaxcreditasself-assessedinthereturn ofaregisteredpersonshallbecreditedtohis electroniccreditledger,inaccordancewith section41,tobemaintainedinsuchmanneras maybeprescribed. (3)Theamountavailableintheelectroniccashledger maybeusedformakinganypaymenttowardstax, interest,penalty,feesoranyotheramountpayable undertheprovisionsofthisActortherulesmade thereunderinsuchmannerandsubjecttosuch conditionsandwithinsuchtimeasmaybe prescribed. (4)Theamountavailableintheelectroniccredit ledgermaybeusedformakinganypayment towardsoutputtaxunderthisActorunderthe IntegratedGoodsandServicesTaxActinsuch mannerandsubjecttosuchconditionsandwithin suchtimeasmaybeprescribed. (5)Theamountofinputtaxcreditavailableinthe electroniccreditledgeroftheregisteredpersonon accountof— (a)integratedtaxshallfirstbeutilisedtowards paymentofintegratedtaxandtheamount remaining,ifany,maybeutilisedtowardsthe paymentofcentraltaxandStatetax,orasthecase maybe,Unionterritorytax,inthatorder; (b)thecentraltaxshallfirstbeutilisedtowards paymentofcentraltaxandtheamountremaining, ifany,maybeutilisedtowardsthepaymentof integratedtax;
Feeusta,fer12FA2017528(193)
(c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards the payment of integrated tax; (d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards the payment of integrated tax; (e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and (f) the State tax or Union territory tax shail not be utilised towards payment of central tax. (6) The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in accordance with the provisions of section 54. (7) All liabilities of a taxable person under this Act shall be recorded and maintained in an electronic liability register in such manner as may be prescribed. (8) Every taxable person shall discharge his tax and other dues under this Act or the rules made thereunder in the following order, namely:— (a) self-assessed tax, and other dues related to returns of previous tax periods; (b) self-assessed tax, and other dues related to the return of the current tax period; (c) any other amount payable under this Act or the rules made thereunder including the demand determined under section or section 74. (9) Every person who has paid the tax on goods or services or both under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods or services or both.
528(194)HEAUsa,fei12FA2017 Explanation.—Forthepurposesofthissection, (a)thedateofcredittotheaccountofthe Governmentintheauthorisedbankshallbe deemedtobethedateofdepositintheelectronic cashledger; (b)theexpression,- (i)“taxdues”meansthe taxpayableunderthisAct anddoesnotincludeinterest,feeandpenalty;and (ii)“otherdues”meansinterest,penalty,feeorany otheramountpayableunderthisActortherules madethereunder. 50.(1)Everypersonwhoisliabletopaytaxin (2)Theinterestundersub-section(1)shallbe calculated,insuchmannerasmaybeprescribed,_ accordancewiththeprovisionsofthisActortherules madethereunder,butfailstopaythetaxoranypart thereoftotheGovernmentwithintheperiod prescribed,shallfortheperiodforwhichthetaxor anypartthereofremainsunpaid,pay,onhisown, interestatsuchrate,notexceedingeighteenpercent., asmaybenotifiedbytheGovernmentonthe recommendationsoftheCouncil. fromthedaysucceedingthedayonwhichsuch taxwasduetobepaid. GB)Ataxablepersonwhomakesanundueorexcess 51. claimofinputtaxcreditundersub-section(10)of section42orundueorexcessreductioninoutput taxliabilityundersub-section(10)ofsection43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent, as may be notified by the Government on the recommendationsoftheCouncil. (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate- (a) a department or establishment of the Central Government or State Government; or (b) local authority; or Interestondelayed paymentoftax. Taxdeductionat source.
Heerusa,feat12Ft2017 (c)Governmentalagencies;or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafterin thissectionreferredtoas“thedeductor”),to deduct tax at the rate of one per cent from the payment madeorcreditedtothesupplier(hereafterinthissection referredtoas“thedeductee”)oftaxablegoodsorservices orboth,wherethetotalvalueofsuchsupply,undera contract,exceedstwolakhandfiftythousandrupees: Providedthatnodeductionshallbemadeifthe locationofthesupplierandtheplaceofsupplyisina StateorUnionterritorywhichisdifferentfromtheState or,asthecasemaybe,Unionterritoryofregistrationof therecipient. Explanation.—Forthepurposeofdeductionoftax specifiedabove,thevalueofsupplyshallbetakenasthe amountexcludingthecentraltax,Statetax,integratedtax andcessindicatedintheinvoice. (2)Theamountdeductedastaxunderthissection shallbepaidtotheGovernmentbythedeductor withintendaysaftertheendofthemonthin whichsuchdeductionismade,insuchmanneras maybeprescribed. (3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such other particulars in such manner as may be prescribed. (4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of such five day period until the failure is rectified, subject to a maximum amount of five thousand rupees. 528(195)
528(196) Ree wea, feaie FA
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub- section (3) of section 39, in such manner as may be prescribed. (6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted. (7) The determination of the amount in default under this section shall be made in the manner specified in section or section 74. (8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54: . Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee. 52.(1) Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. Explanation.—-For the purposes of this sub-section, the expression "net value of taxable supplies" shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. Collection of tax at source.
Femmeswuss,fea12FA2017528(197)
(2) The power to collect the amount specified in sub- section (1) shall be without prejudice to any other mode of recovery from the operator. (3) The amount collected under sub-section (1) shall be paid to the Government by the operator within ten days after the end of the month in which such collection is made, in such manner as may be prescribed. (4)Everyoperatorwhocollectstheamountspecified insub-section(1)shallfurnishastatement, electronically,containingthedetailsofoutward suppliesofgoodsorservicesorbotheffected throughit,includingthesuppliesofgoodsor servicesorbothreturnedthroughit,andthe amountcollectedundersub-section(1)duringa month, in such form and manner as may be prescribed,withintendaysaftertheendofsuch month. (5) Every operator who collects the amount specified in sub-section (1) shall furnish an annual statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under the said sub-section during the financial year, in such form and manner as may be prescribed, before the thirty first day of December following the end of such financial year. (6) If any operator after furnishing a statement under sub-section (4) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the statement to be furnished for the month during which such omission or incorrect particulars are noticed, subject to payment of interest, as specified in sub- section (1) of section 50: Provided that no such rectification of any omission or incorrect particulars shall be allowed after the dye date for furnishing of statement for
528(198)HeeUsya,erie12FA2017 the month of September following the end of the financial year or the actual date of furnishing of the relevant annual statement, whichever is earlier. (7) The supplier who has supplied the goods or services or both through the operator shall claim: credit, in his electronic cash ledger, of the amount collected and reflected in the statement of the operator furnished under sub-section (4), in such manner as may be prescribed. (8)Thedetailsofsuppliesfurnishedbyevery operatorundersub-section(4)shallbematched withthecorrespondingdetailsofoutwardsupplies furnishedbytheconcerned‘supplierregistered underthisActinsuchmannerandwithinsuch timeasmaybeprescribed. (9)Wherethedetailsofoutwardsuppliesfurnished bytheoperatorundersub-section(4)donotmatch withthecorrespondingdetailsfurnishedbythe supplierundersection37,thediscrepancyshallbe communicatedtobothpersonsinsuchmannerand withinsuchtimeasmaybeprescribed. (10)Theamountinrespectofwhichany discrepancyiscommunicatedundersub-section _(9) and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where the value of outward supplies furnished by the operator is more than the value of outward supplies furnished by the supplier, in his return for the month succeeding the month in which the discrepancy is communicated in such mannerasmaybeprescribed. (11) The concerned supplier, in whose output tax liability any amount has been added under sub- section (10), shall pay the tax payable in respect of such supply along with interest, at the rate specified under sub-section (1) of section on the amount so added from the date such tax was due till the date of its payment. —
Heewat,fee12FA2017528(199)
(12) Any authority not below the rank of Deputy Commissioner may serve a notice, either before or during the course of any proceedings under this Act, requiring the operator to furnish such details relating to— (a)suppliesofgoodsorservicesorbotheffected throughsuchoperatorduringanyperiod;or (b)stockofgoodsheldbythesuppliersmaking suppliesthroughsuchoperatorinthegodownsor warehouses,bywhatevernamecalled,managed bysuchoperatoranddeclaredasadditional placesofbusinessbysuchsuppliers, asmaybespecifiedinthenotice. (13)Everyoperatoronwhomanoticehasbeen servedundersub-section(12)shallfurnishthe requiredinformationwithinfifteenworkingdays ofthedateofserviceofsuchnotice. (14) Any person who fails to furnish the information required by the notice served under sub-section (12) shall, without prejudice to any action that may be taken under section 122, be liable to a penalty which may extend to twenty- five thousand rupees. Explanation.—For the purposes of this section, the expression “concerned supplier” shall mean the supplier of goods or services or both making supplies through the operator. 53. On utilisation of input tax credit availed under this Act Transfer of input tax for payment of tax dues under the Integrated Goods credit. and Services Tax Act in accordance with the provisions of sub-section (5S) of section 49, as reflected in the valid return furnished under sub- section (1) of section 39, the amount collected as State tax shall stand reduced by an amount equal to such credit so utilised and the State Government shall transfer an amount equal to the amount so reduced from the State tax account to the integrated tax account in such manner and within such time as may be prescribed. *
528(200)FeageUsers,fei12YA2017 CHAPTERXI REFUNDS 54.(1)AnypersonclaimingrefundofanytaxandRefundoftax. interest,ifany,paidonsuchtaxoranyotheramount paidbyhim,maymakeanapplicationbeforethe expiryoftwoyearsfromthe relevantdateinsuch formandmannerasmaybeprescribed: Providedthataregisteredperson,claimingrefund ofanybalanceintheelectroniccashledgerin accordancewiththeprovisionsofsub-section(6)of section49,mayclaimsuchrefundinthereturn furnishedundersection39insuchmannerasmaybe prescribed, (2)AspecializedagencyoftheUnitedNations OrganizationoranyMultilateralFinancial InstitutionandOrganizationnotifiedunderthe of 1947. United Nations (Privileges and Immunities) Act, 1947,ConsulateorEmbassyofforeigncountries oranyotherpersonorclassofpersons,asnotified undersection55,entitledtoa refundoftaxpaid byitoninwardsuppliesofgoodsorservicesor both,maymakeanapplicationforsuchrefund,in suchformandmannerasmaybeprescribed, beforetheexpiryofsixmonthsfromthelastday ofthequarterinwhichsuchsupplywasreceived. (3)Subjecttotheprovisionsofsub-section(10),a registeredpersonmayclaimrefundofany unutilisedinputtaxcreditattheendofanytax period: Providedthatnorefundofunutilisedinputtax creditshallbeallowedincases otherthan- -(i)zero-ratedsuppliesmadewithoutpaymentof tax;. (ii)wherethecredithasaccumulatedonaccount ofrateoftaxoninputsbeinghigherthantherate oftaxonoutputsupplies(otherthannilratedor fullyexemptsupplies),exceptsuppliesofgoodsor servicesorbothasmaybenotifiedbythe Governmentontherecommendationsofthe Council:
Aeagewstaa,feats12VA2017 Providedfurtherthatnorefundofunutilised inputtaxcreditshallbeallowedincaseswherethe goodsexportedoutofIndiaaresubjectedtoexport duty: Providedalsothatnorefundofinputtaxcredit shallbeallowed,ifthesupplierofgoodsor servicesorbothclaimsrefundoftheintegratedtax paidonsuchsupplies. (4)Theapplicationshallbeaccompaniedby— (a)suchdocumentaryevidenceasmaybeprescribedto establishthatarefundisduetotheapplicant;and (b)suchdocumentaryorotherevidence(includingthe documentsreferredtoinsection33)astheapplicantmay| furnishtoestablishthattheamountoftaxandinterest,if any,paidonsuchtaxoranyotheramountpaidinrelation towhichsuchrefundisclaimedwascollectedfrom,or paidby,himandtheincidenceofsuchtaxandinterest hadnotbeenpassedontoanyotherperson:_ Providedthatwheretheamountclaimedasrefundis lessthantwolakhrupees,itshallnotbenecessaryforthe applicanttofurnishanydocumentaryandotherevidences buthemayfileadeclaration,basedonthedocumentary orotherevidencesavailablewithhim,certifyingthatthe incidenceofsuchtaxandinteresthadnotbeenpassedon toanyotherperson. (5)If,onreceiptofanysuchapplication,theproper officerissatisfiedthatthewholeorpartofthe amount claimed as refund is refundable, he may makeanorderaccordinglyandtheamountso determinedshallbecreditedtotheFundreferred toinsection57. (6) Notwithstanding anything contained in sub- section (5), the proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent of the total amount so claimed, excluding the 528(201)
528(202) Regerusa,fete12FA2017 amountofinputtaxcreditprovisionallyaccepted, insuchmannerandsubjecttosuchconditions, limitationsandsafeguardsasmaybeprescribed andthereaftermakeanorderundersub-section(5) forfinalsettlementoftherefundclaimafterdue verificationofdocumentsfurnishedbythe applicant. (7)Theproperofficershallissuetheorderundersub- section(5)withinsixtydaysfromthedateof receiptofapplicationcompleteinallrespects. (8)Notwithstandinganythingcontainedinsub- section(5),therefundableamountshall,insteadof| beingcreditedtotheFund,bepaidtothe applicant,ifsuchamountisrelatableto— (a)refundoftaxpaidonzero-ratedsuppliesof goodsorservicesorbothoroninputsorinputservices _usedinmakingsuchzero-ratedsupplies; (b)refundofunutilisedinputtaxcreditundersub- section(3); (c)refundoftaxpaidonasupplywhichisnot provided,eitherwhollyorpartially,andforwhich invoicehasnotbeenissued,orwherearefundvoucher hasbeenissued; (d)refundoftaxinpursuanceofsection77; (e)the taxandinterest,ifany,oranyotheramount paidbytheapplicant,ifhehadnotpassedonthe incidenceofsuchtaxandinteresttoanyotherperson; or (f)thetax orinterestbornebysuchotherclassof applicantsastheGovernmentmay,on_the recommendationsoftheCouncil,bynotification, specify. (9)Notwithstandinganythingtothecontrary containedinanyjudgment,decree,orderor directionoftheAppellateTribunaloranycourtor inanyotherprovisionsofthisActortherules madethereunderorinanyotherlawforthetime
meagerusta,frie124A2017528(203)
being in force, no refund shall be made except in accordance with the provisions of sub-section (8). (10) Where any refund is due under sub-section (3) | to a registered person who has defaulted in furnishing any return or who is required to pay any tax, interest or penalty, which has not been stayed by any court, Tribunal or Appellate Authority by the specified date, the proper officer may— (a) withhold payment of refund due until the said person has furnished the return or paid the tax, interest or penalty, as the case may be; (b) deduct from the refund due, any tax, interest, penalty, fee or any other amount which the taxable person is liable to pay but which remains unpaid under this Act or under the existing law. _ Explanation.—For the purposes of this sub-section, the expression “specified date” shall mean the last date for filing an appeal under this Act. (11) Where an order giving rise to a refund is the subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may determine. (12) Where a refund is withheld under sub-section (11), the taxable person shall, notwithstanding anything contained in section 56, be entitled to interest at such rate not exceeding six per cent as may be notified on the recommendations of the Council, if as a result of the appeal or further proceedings he becomes entitled to refund. (13) Notwithstanding anything to the contrary contained in this section, the amount of advance tax deposited by a casual taxable person or a non-
528(204) Heeusta,fete12YA2017 residenttaxablepersonundersub-section(2)of section27,shallnotberefundedunlesssuch personhas,inrespectoftheentireperiodfor whichthecertificateofregistrationgrantedtohim hadremainedinforce,furnishedallthereturns requiredundersection39. (14)Notwithstandinganythingcontainedinthis section,norefundundersub-section(5)orsub- section(6)shallbepaidtoanapplicant,ifthe amountislessthanonethousandrupees. Explanation.—Forthepurposesofthissection,— (1)“refund”includesrefundoftaxpaidonzero- ratedsuppliesofgoodsorservicesorbothoroninputs Orinputservicesusedinmakingsuchzero-rated supplies,orrefundoftaxonthesupplyofgoods regardedasdeemedexports,orrefundofunutilised inputtaxcreditasprovidedundersub-section(3). (2)“relevantdate”means— (a)inthecaseofgoodsexportedoutofIndia wherearefundoftaxpaidisavailableinrespectof goodsthemselvesor,asthecasemaybe,theinputs or inputservicesusedinsuchgoods,— (i)ifthegoodsareexportedbyseaorair,the dateonwhichthe shiportheaircraftinwhich suchgoodsareloaded,leavesIndia;or (ii)ifthegoodsareexportedbyland,thedate onwhichsuchgoodspassthefrontier;or (iii)ifthegoodsareexportedbypost,thedate ofdespatchofgoodsbythePostOffice concernedtoaplaceoutsideIndia; (b)inthecaseofsupplyofgoodsregardedas deemedexportswherearefundoftaxpaidis availableinrespectofthegoods,thedateonwhich thereturnrelatingtosuchdeemedexportsis furnished;
RegerwstTs,fer12FA2017528(205)
46of1947. (c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of— (i) receipt of payment in convertible foreign exchange, where the supply of services had been completed prior to the receipt of such payment; or (ii) issue of invoice, where payment for the services had been received in advance prior to the date of issue of the invoice; (d) in case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction; (e) in the case of refund of unutilised input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises; (f) in the case where tax is paid provisionally under this Act or the rules made thereunder, the date of adjustment of tax after the final assessment thereof; (g) in the case of a person, other than the supplier, the date of receipt of goods or services or both by such person; and (h) in any other case, the date of payment of tax. 55. The Government may, on the recommendations of the Council, by notification, specify any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries and any other person or class of persons as may be specified in this behalf, who shall, subject to such conditions and restrictions as may be prescribed, be entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them. Refundincertaincases.
528(206)HeaeRwera,feat12FA2017 56.Ifanytaxorderedtoberefundedundersub-section(5)Interestondelayed ofsection54toanyapplicantisnotrefundedwithinrefunds. sixtydaysfromthedateofreceiptofapplication undersub-section(1)ofthatsection,interestatsuch ratenotexceedingsixpercent.asmaybespecifiedin thenotificationissuedbytheGovernmentonthe recommendationsoftheCouncilshallbepayablein~ ”respectofsuchrefundfromthedateimmediatelyafter theexpiryofsixtydaysfromthedateofreceiptof applicationunderthesaidsub-sectiontillthedateof refundof suchtax: Providedthatwhereanyclaimofrefundarisesfrom anorderpassedbyanadjudicatingauthorityor AppellateAuthorityorAppellateTribunalorcourt whichhasattainedfinalityandthesameisnot refundedwithinsixtydaysfromthedateofreceiptof applicationfiledconsequenttosuchorder,interestat suchratenotexceedingninepercent.asmaybe notifiedbytheGovernmentontherecommendations oftheCouncilshallbepayableinrespectofsuch refundfromthedateimmediatelyaftertheexpiryof sixtydaysfromthedateofreceiptofapplicationtill thedateofrefund. Explanation.—Forthepurposesofthissection,where anyorderofrefundismadebyanAppellateAuthority, AppellateTribunaloranycourtagainstanorderofthe properofficerundersub-section(5)ofsection54,the orderpassedbytheAppellateAuthority,Appellate Tribunalorbythecourtshallbedeemedtobeanorder passedunderthesaidsub-section(5). 57.TheGovernmentshallconstituteaFund,tobecalledConsumerWelfare theConsumerWelfareFundandthereshallbeFund. creditedtotheFund,— (a)theamountreferredtoinsub-section(5)of section54; (b)anyincomefrominvestmentoftheamount creditedtotheFund;and (c)suchothermoniesreceivedbyit, insuchmannerasmaybeprescribed.
Reapewstya,fea12YA2017528(207)
58. (1) All sums credited to the Fund shall be utilised by Utilisation of Fund. the Government for the welfare of the consumers in such manner as may be prescribed. (2) The Government or the authority specified by it shall maintain proper and separate account and other relevant records in relation to the Fund and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor General of India. CHAPTERXII ASSESSMENT 59, Every registered person shall self-assess the taxes Self-assessment. payable under this Act and furnish a return for each tax period as specified under section 39. 60. (1) Subject to the provisions of sub-section (2), where Provisional assessment. the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him. (2) The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed. (3) The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment:
528(208) ReeUstaa,fei12FA2017 Providedthattheperiodspecifiedinthissub- sectionmay,onsufficientcausebeingshownandfor reasonstoberecordedinwriting,beextendedbythe JointCommissionerorAdditionalCommissionerfora furtherperiodnotexceedingsixmonthsandbythe Commissionerforsuchfurtherperiodnotexceeding fouryears. (4)Theregisteredpersonshallbeliabletopayintereston anytaxpayableonthesupplyofgoodsorservicesor bothunderprovisionalassessmentbutnotpaidonthe duedatespecifiedundersub-section(7)ofsection39 ortherulesmadethereunder,attheratespecified undersub-section(1)ofsection50,fromthefirstday aftertheduedateofpaymentoftaxinrespectofthe saidsupplyofgoodsorservicesorbothtillthedateof actualpayment,whethersuchamountispaidbeforeor aftertheissuanceoforderforfinalassessment. (5)Wheretheregisteredpersonisentitledtoarefund 61. consequenttotheorderoffinalassessmentundersub- section(3),subjecttotheprovisionsofsub-section(8) ofsection54,interestshallbepaidonsuchrefundas providedinsection56. (1)Theproperofficermayscrutinizethereturnand relatedparticularsfurnishedbytheregisteredperson toverifythecorrectnessofthereturnandinformhim ofthediscrepanciesnoticed,ifany,insuchmanneras maybeprescribedandseekhisexplanationthereto. (2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard. (3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section or section or section 67, or proceed to determine the tax and other dues under section or section 74. Scrutinyofreturns.
eamesUsa,fea12FA2017528(209)
62.(1) Notwithstanding anything to the contrary Assessment of non- contained in section or section 74, where a_ filers of returns. registered person fails to furnish the return under section or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgement taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of five years from the date specified under section for furnishing of the annual return for the financial year to which the tax not paid relates. (2) Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section or for payment of late fee under section shall continue. 63. Notwithstanding anything to the contrary contained in Assessment of section or section 74, where a taxable person fails unregistered persons. to obtain registration even though liable to do so or whose registration has been cancelled under sub- section (2) of section but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgement for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section for furnishing of the annual return for the financial year to which the tax not paid relates: Provided that no such assessment order shall be passed without giving the person an opportunity of being heard. 64.(1) The proper officer may, on any evidence showing Summary assessment in a tax liability of a person coming to his notice, with certain special cases. the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue:
528(210) ReeUsa,fet12FA2017 Providedthatwherethetaxablepersontowhom theliabilitypertainsisnotascertainableandsuch liabilitypertainstosupplyofgoods,thepersonin chargeofsuchgoodsshallbedeemedtobethe taxablepersonliabletobeassessedandliabletopay taxandanyotheramountdueunderthissection. (2)Onanapplicationmadebythetaxablepersonwithin thirtydaysfromthedateofreceiptoforderpassed undersub-section(1)oronhisownmotion,ifthe AdditionalCommissionerorJointCommissioner considersthatsuchorderiserroneous,hemay withdrawsuchorderandfollowtheprocedurelaid downinsection73orsection74. CHAPTERXIII AUDIT 65.(1)TheCommissioneroranyofficerauthorisedby him,bywayofageneralor aspecificorder,may undertakeauditofanyregisteredpersonforsuch period,atsuchfrequencyandinsuchmannerasmay beprescribed. (2)Theofficersreferredtoinsub-section(1)may conductauditattheplaceofbusinessofthe registeredpersonorintheiroffice. (3)Theregisteredpersonshallbeinformedbywayof anoticenotlessthanfifteenworkingdayspriorto theconductofauditinsuchmannerasmaybe prescribed. (4)Theauditundersub-section(1)shallbecompleted withinaperiodofthreemonthsfromthedateof commencementoftheaudit: ProvidedthatwheretheCommissionerissatisfiedthat auditinrespectofsuchregisteredpersoncannotbe completedwithinthreemonths,hemay,forthereasonsto berecordedinwriting,extendtheperiodbyafurther -periodnotexceedingsixmonths. Auditbytax authorities.
Hearewstaa,fers1232017 $28(211)
Explanation.—For the purposes of this sub-section, the expression “commencement of audit” shall mean the date on which the records and other documents, called for by the tax authorities, are made available by the registered person or the actual institution of audit at the place of business, whichever is later. (5)Duringthecourseofaudit,theauthorisedofficer. mayrequiretheregisteredperson,— (i)toaffordhimthenecessaryfacilitytoverifythe booksofaccountorotherdocumentsashemay require; (ii)tofurnishsuchinformationashemayrequire andrenderassistancefortimelycompletionofthe audit. (6)Onconclusionofaudit,theproperofficershall, withinthirtydays,informtheregisteredperson, whoserecordsareaudited,aboutthefindings,his rightsandobligationsandthereasonsforsuch findings. (7) Where the audit conducted under sub-section (1) 66. resultsindetectionoftaxnotpaidorshortpaidor erroneouslyrefunded,orinputtaxcreditwrongly availed or utilised, the proper officer may initiate actionundersection73orsection74. (1) If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner. (2) The chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and Specialaudit.
528(212)FeewT,FAH12FA2017 certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified: Provided that the Assistant Commissioner may, on an application made to him in this behalf by the registered person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety days. (3)Theprovisionsofsub-section(1)shallhaveeffect. notwithstandingthattheaccountsoftheregistered personhavebeenauditedunderanyother provisionsofthisActoranyotherlawforthe timebeinginforce. (4)Theregisteredpersonshallbegivenan opportunityofbeingheardinrespectofany materialgatheredonthebasisofspecialaudit undersub-section(1)whichisproposedtobe usedinanyproceedingsagainsthimunderthis Actor-therulesmadethereunder. (5) The expenses of the examination and audit of records under sub-section (1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and such determination shall be final. (6) Where the special audit conducted under sub- section (1) results in detection of tax not paid or. short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under section or section74. CHAPTERXIV INSPECTION, SEARCH, SEIZURE AND ARREST 67. (1) Where the proper officer, not below the rank of Power of inspection, Joint Commissioner, has reasons to believe that— search and seizure. (a) a taxable person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has
HeeUsTa,frie12FA2017 528(213)
indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or (b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, he may authorise in writing any other officer of State tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place. (2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable-to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of State tax to search and seize or may himself search and seize such goods, documents or books or things: Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorised by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer: Provided further that the documents or books or things so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act. (3) The documents, books or things referred to in sub- section (2) or any other documents, books or things produced by a taxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made
528(214) Heewa,feats12FA2017
thereunder, shall be returned to such person within a period not exceeding thirty days of the issue of the said notice. (4) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any premises or to break open any almirah, electronic devices, box, receptacle in which any goods, accounts, registers or documents of the person are suspected to be concealed, where access to such premises, almirah, electronic devices, box or receptacle is denied. (5) The person from whose custody any documents are seized under sub-section (2) shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation. — (6) The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. (7) Where any goods are seized under sub-section (2) and no notice in respect thereof is given within six months of the seizure of the goods, the goods shall be returned to the person from whose possession theywereseized: Provided that the period of six months may, on sufficient cause being shown, be extended by the proper officer for a further period not exceeding six months. (8) The Government may, having regard to the _ perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be. after its seizure
HeeUsa,fete12FA2017 undersub-section(2),bedisposedofbythe properofficerinsuchmannerasmaybe prescribed. (9)Whereanygoods,beinggoodsspecifiedunder sub-section(8),havebeenseizedbyaproper officer,oranyofficerauthorisedbyhimunder sub-section(2),heshallprepareaninventoryof suchgoodsinsuchmannerasmaybeprescribed. 2of1974.(10)TheprovisionsoftheCodeofCriminal Procedure,1973,relatingtosearchandseizure, shall,sofarasmaybe,applytosearchandseizure underthissectionsubjecttothemodificationthat sub-section(5)ofsection165ofthesaidCode shallhaveeffectasiffortheword“Magistrate”, whereveritoccurs,theword“Commissioner” weresubstituted. (11)Wheretheproperofficerhasreasonstobelieve thatanypersonhasevadedorisattemptingto evadethepaymentofanytax,hemay,forreasons toberecordedinwriting,seizetheaccounts, registersordocumentsofsuchpersonproduced beforehimandshallgrantareceiptforthesame, andshallretainthesameforsolongasmaybe -hecessaryinconnectionwithanyproceedings underthisActortherulesmadethereunderfor prosecution. (12)TheCommissioneroranofficerauthorisedby 68. himmaycausepurchaseofanygoodsorservices orbothbyanypersonauthorisedbyhimfromthe businesspremisesofanytaxableperson,tocheck theissueoftaxinvoicesorbillsofsupplybysuch taxable person,andonreturnofgoodsso purchasedbysuchofficer,suchtaxablepersonor anypersoninchargeofthebusinesspremises shallrefundtheamountsopaidtowardsthegoods aftercancellinganytaxinvoiceorbillofsupply issuedearlier. (1)TheGovernmentmayrequirethepersonincharge ofaconveyancecarryinganyconsignmentofgoods ofvalueexceedingsuchamountasmaybespecified tocarrywithhimsuchdocumentsandsuchdevicesas maybeprescribed. 528(215) Inspectionofgoodsin movement.
528(216) 2of1974. of1908 HeegerUstaa,fei12YA2017 (2)Thedetailsofdocumentsrequiredtobecarried undersub-section(1)shallbevalidatedinsuch mannerasmaybeprescribed. (3)Whereanyconveyancereferredtoinsub-section 69. 'clause(a)orclause(b)orclause(c)orclause(d)of| (1)isinterceptedbytheproperofficeratany place,hemayrequirethepersoninchargeofthe saidconveyancetoproducethedocuments prescribedunderthesaidsub-sectionanddevices forverification,andthesaidpersonshallbeliable toproducethedocumentsanddevicesandalso allowtheinspectionofgoods. (1)WheretheCommissionerhasreasonstobelieve thatapersonhascommittedanyoffencespecifiedin sub-section(1)ofsection132whichispunishable underclause(i)or(ii)ofsub-section(1),orsub- section(2)ofthesaidsection,hemay,byorder, authoriseanyofficerofStatetaxtoarrestsuch -person. (2)Whereapersonisarrestedundersub-section(1) foranoffencespecifiedundersub-section(5)of section132,theofficerauthorisedto arrestthe personshallinformsuchpersonofthegroundsof arrestandproducehimbeforeaMagistratewithin twentyfourhours. (3)SubjecttotheprovisionsoftheCodeofCriminal Procedure,1973,-- (a)whereapersonisarrestedundersub-section(1) foranyoffencespecifiedundersub-section(4)of section132,heshallbeadmittedtobailorin defaultofbail,forwardedtothecustodyofthe Magistrate; (b)inthecaseofanon-cognizableandbailable offence,theDeputyCommissionerortheAssistant Commissionershall,forthepurposeofreleasingan arrestedpersononbailorotherwise,havethesame powersandbesubjecttothesameprovisionsasan officer-in-chargeofapolicestation 70.(1)TheproperofficerunderthisActshallhavepower tosummonanypersonwhoseattendanceheconsiders necessaryeithertogiveevidenceortoproducea documentoranyotherthinginanyinquiryinthe Powertoarrest. Powertosummon personstogive evidenceandproduce documents.
45 of1860. 18of2013. 43of1961. Hemeusta,fetie12FA2017 samemanner,asprovidedinthecaseofacivilcourt undertheprovisionsoftheCodeofCivilProcedure, 1908. (2)Everysuchinquiryreferredtoinsub-section(1) 71. shallbedeemedtobea“judicialproceedings” withinthemeaningofsection193andsection228 oftheIndianPenalCode. (1)AnyofficerunderthisAct,authorisedbythe properofficernotbelowtherankofJoint Commissioner,shallhaveaccesstoanyplaceof businessofaregisteredpersontoinspectbooksof account,documents,computers,computerprograms, computersoftwarewhetherinstalledinacomputeror otherwiseandsuchotherthingsashemayrequireand whichmaybeavailableatsuchplace,forthepurposes ofcarryingoutanyaudit,scrutiny,verificationand checksasmaybenecessarytosafeguardtheinterest ofrevenue. (2)Everypersoninchargeofplacereferredtoinsub- section(1)shall,ondemand,makeavailableto theofficerauthorisedundersub-section(1)orthe auditpartydeputedbytheproperofficeroracost accountantorcharteredaccountantnominated undersection66, (i)suchrecordsaspreparedormaintainedbythe registeredpersonanddeclaredtotheproperofficer- insuchmannerasmaybeprescribed; (ii)trialbalanceoritsequivalent; (iii)statementsofannualfinancialaccounts,duly audited,whereverrequired; (iv)costauditreport,ifany,undersection148of theCompaniesAct,2013; (v)theincome-taxauditreport,ifany,under section44ABoftheIncome-taxAct,1961;and (vi)anyotherrelevantrecord, 528(217) Accesstobusiness premises.
528(218) HemeUses,fers12FA2017 forthescrutinybytheofficerorauditpartyorthe charteredaccountantorcostaccountantwithinaperiod notexceedingfifteenworkingdaysfromthedaywhen suchdemandismade,orsuchfurtherperiodasmaybe allowedbythesaidofficerortheauditpartyorthe charteredaccountantorcostaccountant. 72.(1) Allofficers of Police, Railways, Customs, and Officers to assist proper thoseofficersengagedinthecollectionofland revenue,includingvillageofficers,officersofcentral taxandofficersoftheUnionterritorytaxshallassist theproperofficersintheimplementationofthisAct. (2)TheGovernmentmay, bynotification,empower andrequireanyotherclassofofficerstoassistthe properofficersintheimplementationofthisAct whencalledupontodosobytheCommissioner. CHAPTERXV DEMANDSANDRECOVERY 73.(1)Whereitappearstotheproperofficerthatanytax hasnotbeenpaidorshortpaidorerroneously refunded,orwhereinput taxcredithasbeenwrongly availedorutilisedforanyreason,otherthanthe reasonoffraudoranywilfulmisstatementor suppressionoffactstoevadetax,heshallservenotice onthepersonchargeablewithtaxwhichhasnotbeen sopaidorwhichhasbeensoshortpaidortowhom therefundhaserroneouslybeenmade,orwhohas wronglyavailedorutilisedinputtaxcredit,requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section and a penalty leviable under the provisions of this Act or the rules madethereunder. (2) The proper officer shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order. (3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input officers. Determinationoftax notpaidorshortpaidor erroneouslyrefundedor inputtaxcreditwrongly availedorutilisedfor anyreasonotherthan fraudoranywilful misstatement suppressionoffacts. or
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tax credit wrongly availed or utilised for such periods other than those covered under sub- section (1), on the person chargeable with tax. (4)Theserviceofsuchstatementshallbedeemedto beserviceofnoticeonsuchpersonundersub- section(1),subjecttotheconditionthatthe groundsrelieduponforsuchtaxperiodsother thanthosecoveredundersub-section(1)arethe sameasarementionedintheearliernotice. (5)Thepersonchargeablewithtaxmay,before serviceofnoticeundersub-section(1)or,asthe casemaybe,thestatementundersub-section(3), paytheamountoftaxalongwithinterestpayable thereonundersection50onthebasisofhisown ascertainmentofsuchtaxorthetaxasascertained bytheproperofficerandinformtheproperofficer inwritingofsuchpayment. (6)Theproperofficer,onreceiptofsuchinformation, shallnotserveanynoticeundersub-section(1)or, as thecasemaybe,thestatementundersub- section(3),inrespectofthetaxso paidorany penaltypayableundertheprovisionsofthisActor therulesmadethereunder. (7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amountactuallypayable. (8) Where any person chargeable with tax under sub- section (1) or sub-section (3) pays the said tax along with interest payable under section within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded. (9) The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten
528(220) HeeUsa,fea12FA2017 thousandrupees,whicheverishigher,duefrom suchpersonandissueanorder. (10)Theproperofficershallissuetheorderunder sub-section(9)withinthreeyearsfromthedue dateforfurnishingofannualreturnforthe financialyeartowhichthe taxnotpaidorshort paidorinputtaxcreditwronglyavailedorutilised relatestoorwithinthreeyearsfromthedateof erroneousrefund. (11)Notwithstandinganythingcontainedinsub- 74, section(6)orsub-section(8),penaltyundersub- section(9)shallbepayablewhereanyamountof self-assessedtaxoranyamountcollectedastax hasnotbeenpaidwithinaperiodofthirtydays fromtheduedateofpaymentofsuchtax. (1)Whereitappearstotheproperofficerthatanytax hasnotbeenpaidorshortpaidorerroneously refundedorwhereinputtaxcredithasbeenwrongly availedorutilisedbyreasonoffraud,oranywilful misstatementorsuppressionoffactstoevadetax,he shallservenoticeonthepersonchargeablewithtax whichhasnotbeensopaidorwhichhasbeensoshort paidortowhomtherefundhaserroneouslybeen made,orwhohaswronglyavailedorutilisedinputtax credit,requiringhimtoshowcauseastowhyhe shouldnotpaytheamountspecifiedinthenotice alongwithinterestpayablethereonundersection50 andapenaltyequivalenttothetaxspecifiedinthe notice. (2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order. (3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub- section (1), on the person chargeable with tax. Determinationoftax notpaidorshortpaidor erroneouslyrefundedor inputtaxcreditwrongly availedorutilisedby reasonoffraudorany wilfulmisstatementor suppressionoffacts.
HeeUsa,fai12BA2017 528(221)
(4) The service of statement under sub-section (3) shall be deemed to be service of notice under sub- section (1) of section 73, subject to the condition that the grounds relied upon in the said statement, except the ground of fraud, or any wilful- misstatement or suppression of facts to evade tax, for periods other than those covered under sub- section (1) are the same as are mentioned in the earliernotice. (5) The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with interest payable under section and a penalty equivalent to fifteen per cent of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer inwritingofsuchpayment. (6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder. (7) Where the proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section Q) in respect of such amount which falls short of the amountactuallypayable. (8) Where any person chargeable with tax under sub- section (1) pays the said tax along with interest payable under section and a penalty equivalent to twenty five per cent of such tax within thirty days of issue of the notice, all proceedings in respect of the said notice shall be deemed to be concluded. (9) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order.
528(222)HeqIeWaT,fete12FA2017
(10) The proper officer shall issue the order under sub-section (9) within a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous refund. (11)Whereanypersonservedwithanorderissued undersub-section(9)paysthetaxalongwith interestpayablethereonundersection50anda penaltyequivalenttofiftypercentofsuch.tax withinthirtydaysofcommunicationoftheorder, allproceedingsinrespectofthesaidnoticeshall bedeemedtobeconcluded. Explanation1.—Forthepurposesofsection73andthis section,—— (i)theexpression“allproceedingsinrespectofthe saidnotice”shallnotincludeproceedingsunder section132; (ii)wherethenoticeunderthesameproceedingsis issuedtothemainpersonliabletopaytaxandsome other persons, and such proceedings against the main person have been concluded under section or section74,theproceedingsagainstallthepersons liable to pay penalty under sections 122, 125, and 130aredeemedtobeconcluded. Explanation 2.—For the purposes of this Act, the expression “suppression” shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer. 75. (1) Where the service of notice or issuance of order is stayed by an order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period specified in sub-sections (2) and (10) of section or sub-sections (2) and (10) of section 74, as the case may be. Generalprovisions relatingto determination of tax.
HeeUT,fei12YA2017 528(223)
(2) Where any Appellate Authority or Appellate Tribunal or court concludes that the notice issued under sub-section (1) of section is not sustainable for the reason that the charges of fraud or any wilful misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable by such person, deeming as if the notice were issued under sub-section (1) of section 73. (3) Where any order is required to be issued in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court, such order shall be issued within two years from the date of communication of the said direction. (4) An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person. (5) The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasonsto berecordedinwriting: Provided that no such adjournment shall be granted for more than three times to a person during the proceedings. (6) The proper officer, in his order, shall set out the relevant facts and the basis of his decision. (7) The amount of tax, interest and penalty demanded — in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice. (8) Where the Appellate Authority or Appellate Tribunal or court modifies the amount of tax determined by the proper officer, the amount of interest and penalty shall stand modified accordingly, taking into account the amount of tax somodified.
528(224)HeeUsa,fea12FA2017 (9)Theinterestonthetaxshortpaidornotpaidshall be payable whether or not specified in the order determiningthetaxliability. (10)Theadjudicationproceedingsshallbedeemed tobeconcluded,iftheorderisnotissuedwithin threeyearsasprovidedforinsub-section(10)of section73orwithinfiveyearsasprovidedforin sub-section(10)ofsection74. (11)AnissueonwhichtheAppellateAuthorityor theAppellateTribunalortheHighCourthas givenitsdecisionwhichisprejudicialtothe interestofrevenueinsomeotherproceedingsand anappealtotheAppellateTribunalortheHigh CourtortheSupremeCourtagainstsuchdecision oftheAppellateAuthorityortheAppellate TribunalortheHighCourtispending,theperiod spentbetweenthedateofthedecisionofthe Appellate AuthorityandthatoftheAppellate TribunalorthedateofdecisionoftheAppellate TribunalandthatoftheHighCourtorthedateof thedecisionoftheHighCourtandthatofthe SupremeCourtshallbeexcludedincomputingthe periodreferredtoinsub-section(10)ofsection73 or sub-section(10)ofsection74where proceedingsareinitiatedbywayofissueofa showcausenoticeunderthesaidsections. (12)Notwithstandinganythingcontainedinsection or section 74, where any amount of self- assessed tax in accordance with a return furnished under section remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered undertheprovisionsofsection79. (13) Where any penalty is imposed under section or section 74, no penalty for the same act or omission shall be imposed on the same person under any other provision of this Act. 76.(1) Notwithstanding anything to the contrary Tax collected but not contained in any order or direction of any Appellate paid to Government. Authority or Appellate Tribunal or court or in any other provisions of this Act or the rules made
Reameswera,feat12FA2017528(225)
thereunder or any other law for the time being in force, every person who has collected from any other . person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not. (2)Whereanyamountisrequiredtobepaidtothe Governmentundersub-section(1),andwhichhas notbeensopaid,theproperofficermayserveon thepersonliabletopaysuchamountanotice requiringhimtoshowcauseastowhythesaid amountasspecifiedinthenotice,shouldnotbe paidbyhimtotheGovernmentandwhyapenalty equivalenttotheamountspecifiedinthenotice shouldnotbeimposedonhimunderthe provisionsofthisAct. (3)Theproperofficershall,afterconsideringthe representation,ifany,madebythepersonon whomthenoticeisservedundersub-section(2), determinetheamountduefromsuchpersonand thereuponsuchpersonshallpaytheamountso determined. (4)Thepersonreferredtoinsub-section(1)shallin addition to paying the amount referred to in sub- section (1) or sub-section (3) also be liable to pay interest thereon at the rate specified under section from the date such amount was collected by him to the date such amount is paid by him to the Government. (5) An opportunity of hearing shall be granted where a request is received in writing from the person to whom the notice was issued to show cause. (6) The proper officer shall issue an order within one year from the date of issue of the notice. (7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of one year.
528(226)HeeUsa,frie12FA2017 (8)Theproperofficer,inhisorder,shallsetoutthe relevantfactsandthe basisofhisdecision. (9)TheamountpaidtotheGovernmentundersub- section(1)orsub-section(3)shallbeadjusted againstthetaxpayable,ifany,bythepersonin relationtothesuppliesreferredto insub-section (1). (10)Whereanysurplusisleftaftertheadjustment undersub-section(9),theamountofsuchsurplus shalleitherbecreditedtotheFundorrefundedto thepersonwhohasbornetheincidenceofsuch amount.: (11).Thepersonwhohasbornetheincidenceofthe amount,mayapplyfortherefundofthesamein accordancewiththeprovisionsofsection54. 77,(1)Aregisteredpersonwhohaspaidthecentraltax andStatetaxonatransactionconsideredbyhimtobe anintra-Statesupply,butwhichissubsequentlyheld tobe aninter-Statesupply,shallberefunded’the amountoftaxessopaidinsuchmannerandsubjectto suchconditionsasmaybeprescribed. (2)Aregisteredpersonwhohaspaidintegratedtax onatransactionconsideredbyhimtobe aninter- Statesupply,butwhichissubsequentlyheldtobe anintra-Statesupply,shallnotberequiredtopay anyinterestontheamountofStatetaxpayable. 78.Anyamountpayablebyataxablepersoninpursuance ofanorderpassedunderthisActshallbepaidbysuch personwithina periodofthreemonthsfromthedate ofserviceofsuchorderfailingwhichrecovery proceedingsshallbeinitiated: Providedthatwheretheproperofficerconsidersit expedientintheinterestofrevenue,hemay,forreasons toberecordedinwriting,requirethesaidtaxableperson tomakesuchpaymentwithinsuchperiodlessthana periodofthreemonthsasmaybespecifiedbyhim. Taxwrongfully collectedandpaidto CentralGovernmentor StateGovernment. Initiationofrecovery proceedings.
Feewea,feats12YF2017528(227) 79.(1)WhereanyamountpayablebyapersontotheRecoveryoftax. GovernmentunderanyoftheprovisionsofthisActor therulesmadethereunderisnotpaid,theproper officershallproceedtorecovertheamountbyoneor moreofthefollowingmodes,namely:— (a)theproperofficermaydeductormayrequire— anyotherspecifiedofficertodeducttheamountso payablefromanymoneyowingtosuchpersonwhich maybeunderthecontroloftheproperofficerorsuch otherspecifiedofficer; (b)theproperofficermayrecoverormayrequire anyotherspecifiedofficertorecovertheamountso payablebydetainingandsellingany goodsbelonging tosuchpersonwhichareunderthecontrolofthe properofficerorsuchotherspecifiedofficer; (c)(i)theproperofficermay,byanoticeinwriting, requireanyotherpersonfromwhommoneyisdueor maybecomeduetosuchpersonorwhoholdsormay subsequentlyholdmoneyfororonaccountofsuch person,topaytotheGovernmenteitherforthwith uponthemoneybecomingdueorbeingheld,orwithin thetimespecifiedinthe noticenotbeingbeforethe moneybecomesdueorisheld,somuchofthemoney asissufficienttopaytheamountduefromsuch personorthewholeofthemoneywhenitisequalto orlessthanthatamount; (ii)everypersontowhomthenoticeisissued undersub-clause(i)shallbeboundtocomplywith suchnotice,andinparticular,whereanysuch noticeisissuedtoapostoffice,bankingcompany oraninsurer,itshallnotbenecessarytoproduce anypassbook,depositreceipt,policyoranyother documentforthepurposeofanyentry, endorsementorthelikebeingmadebefore paymentismade,notwithstandinganyrule, practiceorrequirementtothecontrary; (iii)incasethepersontowhomanoticeunder sub-clause(i)hasbeenissued,failstomakethe paymentinpursuancethereoftotheGovernment, heshallbedeemedtobeadefaulterinrespectof theamountspecifiedinthenoticeandallthe
528(228) AeqreRUsa,fetish12FA2017
consequences of this Act or the rules made thereunder shall follow; (iv) the officer issuing a notice under sub- clause (i) may, at any time, amend or revoke such notice or extend the time for making any payment in pursuance of the notice; (v) any person making any payment in compliance with a notice issued under sub-clause (i) shall be deemed to have made the payment under the authority of the person in default and such payment being credited to the Government shall be deemed to constitute a good and sufficient discharge of the liability of such person to the person in default to the extent of the amount specified in the receipt; (vi) any person discharging any liability to the person in default after service on him of the notice issued under sub-clause (i) shall be personally liable to the Government to the extent of the liability discharged or to the extent of the liability of the person in default for tax, interest and penalty, whichever is less; (vii)whereapersononwhomanoticeisserved under sub-clause (i) proves to the satisfaction of the officer issuing the notice that the money demanded or any part thereof was not due to the person in default or that he did not hold any money for or on account of the person in default, at the time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the said person or be held for or on account of such person, nothing contained in this section shall be deemed to require the person on whom the notice has been served to pay to the Government any such money or part thereof; (d) the proper officer may, in accordance with the rules to be made in this behalf, distrain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distress or keeping
2of1974,. Hearwera,fests12BA2017 oftheproperty,remainsunpaidforaperiodofthirty days next after any such distress, may cause the said propertytobesoldandwiththeproceedsofsuchsale, maysatisfytheamountpayableandthecostsincluding costofsaleremainingunpaidandshallrenderthe surplusamount,ifany,tosuchperson; (e)theproperofficermayprepareacertificate signedbyhimspecifyingtheamountduefromsuch personandsendittotheCollectorofthedistrictin whichsuchpersonownsanypropertyorresidesor carriesonhisbusinessortoanyofficerauthorisedby theGovernmentandthesaidCollectororthesaid officer,onreceiptofsuchcertificate,shallproceedto recoverfromsuchpersontheamountspecified thereunderasifitwereanarrearoflandrevenue; (f)NotwithstandinganythingcontainedintheCode ofCriminalProcedure,1973,theproperofficermay fileanapplicationtotheappropriateMagistrateand suchMagistrateshallproceedtorecoverfromsuch persontheamountspecifiedthereunderasifitwerea fineimposedbyhim. .(2)Wherethetermsofanybondorotherinstrument executedunderthisActoranyrulesorregulations madethereunderprovidethatanyamountdue undersuchinstrumentmayberecoveredinthe mannerlaiddowninsub-section(1),theamount may,withoutprejudicetoanyothermodeof recovery,berecoveredinaccordancewiththe provisionsofthatsub-section. (3) Where any amount of tax, interest or penalty is payable by a person to the Government under any of the provisions of this Act or the rules made thereunder and which remains unpaid, the proper officer of central tax, during the course of ' recovery of said tax arrears, may recover the amount from the said person as if it were an arrear of central tax and credit the amount so recovered totheaccount oftheGovernment. (4) Where the amount recovered under sub-section (3) is less than the amount due to the Central Government and State Government, the amount to 528(229)
528(230) 31of2016 HegreUsa,Tea12FA2017 be credited to the account of the respective Governments shall be in proportion to the amount due to each such Government. 80.Onanapplicationfiledbyataxableperson,the Commissionermay,forreasonstoberecordedin writing,extendthetimeforpaymentorallowpayment ofanyamountdueunderthisAct,otherthanthe amountdueaspertheliabilityself-assessedinany return,bysuchpersoninmonthlyinstalmentsnot exceedingtwentyfour,subjecttopaymentofinterest undersection50andsubjecttosuchconditionsand limitationsasmaybeprescribed: Providedthatwherethereisdefaultinpaymentof any oneinstalmentonitsduedate,thewholeoutstanding balancepayableonsuchdateshallbecomedueand payableforthwithandshall,withoutanyfurthernotice beingservedonthe-person,beliableforrecovery. 81.Whereaperson,afteranyamounthasbecomedue fromhim,createsa chargeonorpartswiththe propertybelongingtohimorinhispossessionbyway ofsale,mortgage,exchange,oranyothermodeof transferwhatsoeverofanyofhispropertiesinfavour ofanyotherpersonwiththeintentionofdefrauding theGovernmentrevenue,suchchargeortransfershall bevoidasagainstanyclaiminrespectofanytaxor anyothersumpayablebythesaidperson: Providedthat,suchchargeortransfershallnotbevoid if it is made for adequate consideration, in good faith and withoutnoticeofthependencyofsuchproceedingsunder. this Act or without notice of such tax or other sum payable by the said person, or with the previous permission ofthe properofficer. 82. Notwithstanding anything to the contrary contained in any law for the time being in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, any amount payable by a taxable person or any other person on account of tax, interest or penalty . whichheisliabletopaytotheGovernmentshallbea first charge on the property of such taxable person or suchperson. Paymentoftaxand otheramountin instalments. Transferofpropertyto bevoidincertaincases. Taxtobefirstcharge onproperty.
Hemeusta,fear12YA2017 §28(231) 83.(1) Where during the pendency of any proceedings Provisional attachment undersection orsection 63or section64 or sectionto protect revenue in 67orsection73orsection74,theCommissionerisofcertaincases. theopinionthatforthepurposeofprotectingthe interestoftheGovernmentrevenue,itisnecessaryso todo,hemay,byorderinwritingattachprovisionally anyproperty,includingbankaccount,belongingtothe taxablepersoninsuchmannerasmaybeprescribed. (2)Everysuchprovisionalattachmentshallceaseto 84. haveeffectaftertheexpiryofaperiodofoneyear fromthedateoftheordermadeundersub-section (1). Whereanynoticeofdemandinrespectofanytax,Continuationand penalty,interestoranyotheramountpayableundervalidationofcertain _thisAct,(hereafterinthissectionreferredtoasrecoveryproceedings. “Governmentdues”),isserveduponanytaxable personoranyotherpersonandanyappealorrevision applicationisfiledoranyotherproceedingsis initiatedinrespectofsuchGovernmentdues,then— (a)wheresuchGovernmentduesareenhancedin suchappeal,revisionorotherproceedings,the Commissionershallserveuponthetaxablepersonor anyotherpersonanothernoticeofdemandinrespect oftheamountbywhichsuchGovernmentduesare enhancedandanyrecoveryproceedingsinrelationto suchGovernmentduesasarecoveredbythenoticeof demandserveduponhimbeforethedisposalofsuch appeal,revisionorotherproceedingsmay,withoutthe serviceofanyfreshnoticeofdemand,becontinued fromthestageatwhichsuchproceedingsstood immediatelybeforesuchdisposal; (b)wheresuchGovernmentduesarereducedin suchappeal,revisionorinotherproceedings— (i)itshallnotbenecessaryforthe Commissionertoserveuponthetaxablepersona freshnoticeofdemand; (ii)theCommissionershallgiveintimationof suchreductiontohimandtotheappropriate authoritywithwhomrecoveryproceedingsis pending;
528(232)ReggeUsa,fetie12 WAI2017 (iii)anyrecoveryproceedingsinitiatedonthe basisofthedemandserveduponhimpriortothe disposalofsuchappeal,revisionorother proceedingsmaybecontinuedinrelationtothe amountsoreducedfromthestageatwhichsuch proceedingsstoodimmediatelybeforesuch disposal. CHAPTERXVI LIABILITYTOPAYINCERTAINCASES 85.(1)Whereataxableperson,liabletopaytaxunderLiabilityincaseof thisAct,transfershisbusinessinwholeorinpart,bytransferofbusiness. sale,gift,lease,leaveandlicense,hireorinanyother mannerwhatsoever,thetaxablepersonandtheperson towhomthebusinessissotransferredshall,jointly andseverally,beliablewhollyortotheextentofsuch- transfer,topaythetax,interestoranypenaltydue fromthetaxablepersonuptothetimeofsuchtransfer, whethersuchtax,interestorpenaltyhasbeen determinedbeforesuchtransfer,buthasremained unpaidorisdeterminedthereafter. (2)Wherethetransfereeofabusinessreferredtoin sub-section(1)carriesonsuchbusinesseitherin hisownnameorinsomeothername,heshallbe liabletopaytaxonthesupplyofgoodsor servicesorbotheffectedbyhimwitheffectfrom thedateofsuchtransferandshall,ifheisa registeredpersonunderthisAct,applywithinthe prescribedtimeforamendmentofhiscertificate ofregistration. 86. Where an agent supplies or receives any taxable goods Liability of agent and on behalf of his principal, such agent and his principal _ principal. shall, jointly and severally, be liable to pay the tax payable on such goods under this Act. 87. (1) When two or more companies are amalgamated or Liability in case of merged in pursuance of an order of court or of amalgamation or Tribunal or otherwise and the order is to take effect merger of companies. from a date earlier to the date of the order and any two or more of such companies have supplied or received any goods or services or both to or from each other
HeeUsa,fete12FA2017528(233)
during the period commencing on the date from which the order takes effect till the date of the order, then such transactions of supply and receipt shall be included in the turnover of supply or receipt of the respective companies and they shall be liable to pay tax accordingly. (2) Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or more companies shall be treated as distinct companies for the period up to the date of the said order and the registration certificates of the said companies shall be cancelled with effect from the- dateofthesaidorder. 88. (1) When any company is being wound up whether under the orders of a court or Tribunal or otherwise, every person appointed as receiver of any assets of a company (hereafter in this section referred to as the “liquidator”), shall, within thirty days after his appointment, give intimation of his appointment to the Commissioner. (2) The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the liquidator within three months from the date on which he receives intimation of the appointment of the liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any tax, interest or penalty which is then, or is likely thereafter to become, payable by the company. (3) When any private company is wound up and any tax, interest or penalty determined under this Act on the company for any period, whether before or in the course of or after its liquidation, cannot be “fééovetéd, then Every person who was a director of such company at any time during the period for which the tax was due shall, jointly and severally, be liable for the payment of such tax, interest or - penalty, unless he proves to the satisfaction of the Commissioner that such non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs ofthecompany. Liabilityincaseof companyinliquidation.
528(234) FeeUsa,feat12YA2017
of 2013. 89.(1) Notwithstanding anything contained in the Liability of directors of Companies Act, 2013, where any tax, interest or penalty due from a private company in respect of any supply of goods or services or both for any period cannot be recovered, then, every person who was a director of the private company during such period shall, jointly and severally, be liable for the payment of such tax, interest or penalty unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. (2) Where a private company is converted into a public company and the tax, interest or penalty in respect of any supply of goods or services or both for any period during which such company was a private company cannot be recovered before such. conversion, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax, interest or penalty in respect of such supply of goods or services or both of such private company: Provided that nothing contained in this sub-section shall apply to any personal penalty imposed on such director. 90. Notwithstanding any contract to the contrary and. any other law for the time being in force, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall, jointly and severally, be liable for such payment: Provided that where any partner retires from the firm, he or the firm, shall intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing and such partner shall be liable to pay tax, interest or penalty due upto the date of his retirement whether determined or not, on thatdate: Provided further that if no such intimation is given within one month from the date of retirement, the liability of such partner under the first proviso shall continue until the date on which such intimation is received by the Commissioner. privatecompany. Liabilityofpartnersof firmtopaytax.
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31of2016 91, 92. 93. Wherethebusinessinrespectofwhichanytax, interestorpenaltyispayableunderthisActiscarried onbyanyguardian,trusteeoragentofaminoror otherincapacitatedpersononbehalfofandforthe benefitofsuchminororotherincapacitatedperson, thetax,interestorpenaltyshallbelevieduponand recoverablefromsuchguardian,trusteeoragentin likemannerandtothesameextentasitwouldbe determinedandrecoverablefromanysuchminoror otherincapacitatedperson,asifhewereamajoror capacitatedpersonandasifhewereconductingthe businesshimself,andalltheprovisionsofthisActor therulesmadethereundershallapplyaccordingly. Wheretheestateoranyportionoftheestateofa taxablepersonowningabusinessinrespectofwhich anytax,interestorpenaltyispayableunderthisActis underthecontroloftheCourtofWards,the AdministratorGeneral,theOfficialTrusteeorany receiverormanager(includinganyperson,whatever behisdesignation,whoinfactmanagesthebusiness) appointedbyorunderanyorderofacourt,thetax, interestorpenaltyshallbelevieduponandbe recoverablefromsuchCourtofWards,Administrator General,OfficialTrustee,receiverormanagerinlike mannerandtothesameextentasitwouldbe determinedandberecoverablefromthetaxable personasifhewereconductingthebusinesshimself, andalltheprovisionsofthisActortherulesmade thereundershallapplyaccordingly. (1)SaveasotherwiseprovidedintheInsolvencyand BankruptcyCode,2016,whereaperson,liabletopay tax,interestorpenaltyunderthisAct,dies,then—
- (a) ifabusinesscarriedon bythepersonis continuedafterhisdeathbyhislegalrepresentative or any other person, such legal representative or other person, shall be liable to pay tax, interest or penalty due from such person under this Act; and (b) if the business carried on by the person is discontinued, whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty due from such person under this Act, Liabilityofguardians,. trusteesetc. LiabilityofCourtof Wards,etc. Specialprovisions regardingliabilityto paytax,interestor penaltyincertaincases. 528(236) HeeUTA,fea12YA2017 31of2016 31of2016 31of2016 whether such tax, interest or penalty has been determined before his death but has remained unpaid or is determined after his death. (2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a taxable person, liable to pay tax, interest or penalty under this Act, is a Hindu Undivided Family or an association of persons and the property of the Hindu Undivided Family or the association of persons is partitioned amongst the various members or groups of members, then, each member or group of members shall, jointly and severally, be liable to pay the tax, interest or penalty due from the taxable person under this Act upto the time of the partition whether such tax, penalty or interest has been determined before partition but has remained unpaid orisdetermined after thepartition. (3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a taxable person, liable to pay tax, interest or penalty under this Act, is a firm, and the firm is dissolved, then, every person who was a partner shall, jointly and severally, be liable to pay the tax, interest or penalty due from the firm under this Act upto the time of dissolution whether such tax, interest or penalty has been determined before the dissolution, but has remained unpaid or is determined after dissolution. (4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a taxable person liable to pay tax, interest or penalty under this Act,— (a) is the guardian of a ward on whose behalf the business is carried on by the guardian; or (b) is a trustee who carries on the business under a trust for a beneficiary, then, if the guardianship or trust is terminated, the ward or the beneficiary shall be liable to pay the tax, interest or penalty due from the taxable person upto the time of the termination of the guardianship or trust, whether such tax, Heqreteas,fete12FA2017 interestorpenaltyhasbeendeterminedbeforethe terminationofguardianshiportrustbuthasremained unpaidorisdeterminedthereafter. 94,(1)Whereataxablepersonisafirmoranassociation ofpersonsoraHinduUndividedFamilyandsuch firm,associationorfamilyhasdiscontinuedbusiness— (a)thetax,interestorpenaltypayableunderthis Actbysuchfirm,associationorfamilyuptothedateof suchdiscontinuancemaybedeterminedasifnosuch discontinuancehadtakenplace;and (b)everypersonwho,atthetimeofsuch discontinuance,wasapartnerofsuchfirm,ora memberofsuchassociationorfamily,shall, notwithstandingsuchdiscontinuance,jointlyand severally,beliableforthepaymentoftaxandinterest determinedandpenaltyimposedandpayablebysuch firm,associationorfamily,whethersuchtaxand interesthasbeendeterminedorpenaltyimposedprior tooraftersuchdiscontinuanceandsubjectas aforesaid,theprovisionsofthisActshall,sofaras maybe,applyasifeverysuchpersonorpartneror memberwerehimselfataxableperson. (2)Whereachangehasoccurredintheconstitution ofafirmoranassociationofpersons,thepartners ofthefirmormembersofassociation,asitexisted beforeandasitexistsafterthereconstitution, shall, without prejudice to the provisions of section90,jointlyandseverally,beliabletopay tax,interestorpenaltyduefromsuchfirmor association for any period before _ its reconstitution. (3) The provisions of sub-section (1) shall, so far as may be, apply where the taxable person, being a firm or association of persons is dissolved or where the taxable person, being a Hindu Undivided Family, has effected partition with _ respect to the business carried on by it and accordingly references in that sub-section to discontinuance shall be construed as reference to dissolution or to partition. 528(237) Liabilityinothercases. 528(238)Heetsa,fet12YA2017 Explanation.—For the purposes of this Chapter,— (i) a “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability of 2009. Partnership Act, shall also be considered as a firm; (ii) “court” means the District Court, High Court or - Supreme Court, CHAPTERXVII ADVANCERULING 95.In this Chapter, unless the context otherwise Definitions. requires,— (a) “advance ruling” means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; (b)"AppellateAuthority”meanstheAppellate AuthorityforAdvanceRulingconstituted undersection99; (c)“applicant”meansanypersonregisteredor desirousofobtainingregistrationunderthis Act; (d)“application”meansanapplicationmadetothe Authorityundersub-section(1)ofsection 97; (e)“Authority”meanstheAuthorityforAdvance Ruling,constitutedundersection96. 96.(1)TheGovernmentshall,bynotification,constituteConstitutionof anAuthoritytobeknownastheMadhyaPradeshAuthorityforAdvance AuthorityforAdvanceRuling:Ruling. eaeUs,feria12YA2017 528(239) ProvidedthattheGovernmentmay,onthe recommendationoftheCouncil,notifyanyAuthority locatedinanotherStatetoactastheAuthorityforthe State. (2)TheAuthorityshallconsistof- (i)onememberfromamongsttheofficersofcentral tax;and (ii)onememberfromamongsttheofficersofStatetax, tobeappointedbytheCentralGovernmentandtheState Governmentrespectively. (3)Thequalifications,themethodofappointmentofthe membersandthetermsandconditionsoftheirservices shallbesuchasmaybeprescribed. 97.(1)Anapplicantdesirousofobtaininganadvance rulingunderthisChaptermaymakeanapplicationin suchformandmannerandaccompaniedbysuchfee asmaybeprescribed,statingthequestiononwhich theadvancerulingissought. (2)Thequestiononwhichtheadvancerulingis soughtunderthisAct,shallbeinrespectof,- (a)classificationofanygoodsorservicesorboth; (b)applicabilityofanotificationissuedunderthe provisionsofthisAct; (c) determination of time and value of supply of goods or Services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods orservices or both; (f)whetherapplicantisrequiredtoberegistered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Applicationforadvance ruling. 528(240) HegreUsraa,feaiH12FA2017 98.(1)Onreceiptofanapplication,theAuthorityshallProcedureonreceiptof causeacopythereoftobeforwardedto'theconcernedapplication. officerand,ifnecessary,calluponhimtofurnishthe relevantrecords: Providedthatwhereanyrecordshave beencalled forbytheAuthorityinanycase,suchrecordsshall,as soonaspossible,bereturnedtothesaidconcernedofficer. (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application: ProvidedthattheAuthorityshallnotadmitthe applicationwherethequestionraisedinthe applicationisalreadypendingordecidedinany proceedingsinthecaseofanapplicantunderanyof theprovisionsofthisAct: Providedfurtherthatnoapplicationshallbe rejectedunderthissub-sectionunlessanopportunityof hearinghasbeengiventotheapplicant: Providedalsothatwheretheapplicationisrejected, thereasonsforsuchrejectionshal!bespecifiedinthe order. (3)Acopyofeveryordermadeundersub-section(2) shallbesenttotheapplicantandtotheconcerned officer. (4)Whereanapplicationisadmittedundersub- section(2),theAuthorityshall,afterexamining suchfurthermaterialasmaybeplacedbeforeitby theapplicantorobtainedbytheAuthorityand afterprovidinganopportunityofbeing heardto theapplicantorhisauthorisedrepresentativeas wellastotheconcernedofficerorhisauthorised representative,pronounceitsadvancerulingon thequestionspecifiedintheapplication. (5)WherethemembersoftheAuthoritydifferonany questiononwhichtheadvancerulingissought, Heeusta,feats12FA2017 theyshallstatethepointorpointsonwhichthey differandmakeareferencetotheAppellate Authorityforhearinganddecisiononsuch question. (6)TheAuthorityshallpronounceitsadvanceruling inwritingwithinninetydaysfromthedateof receiptofapplication. (7)Acopyoftheadvancerulingpronouncedbythe Authoritydulysignedbythemembersand certifiedinsuchmannerasmaybeprescribed shallbesenttotheapplicant,theconcerned officerandthejurisdictionalofficeraftersuch pronouncement. 99.TheGovernmentshall,bynotification,constitutean AuthoritytobeknownasMadhyaPradeshAppellate AuthorityforAdvanceRulingforGoodsandServices Taxforhearingappealsagainsttheadvanceruling pronouncedbytheAdvanceRulingAuthority: ProvidedthattheGovernmentmay,onthe recommendationsoftheCouncil,notifyanyAppellate AuthoritylocatedinanotherStateorUnionterritory toactastheAppellateAuthorityfortheState. 100.(1)Theconcernedofficer,thejurisdictionalofficer oranapplicantaggrievedbyanyadvanceruling pronouncedundersub-section(4)ofsection98,may appealtotheAppellateAuthority. (2)Everyappealunderthissectionshallbefiled withinaperiodofthirtydaysfromthedateon whichtherulingsoughttobeappealedagainstis communicatedtotheconcernedofficer,the jurisdictionalofficerandtheapplicant: ProvidedthattheAppellateAuthoritymay,ifitis satisfiedthattheappellantwaspreventedbyasufficient causefrompresentingtheappealwithinthesaidperiodof thirtydays,allowittobepresentedwithinafurtherperiod notexceedingthirtydays. (3)Everyappealunderthissectionshallbeinsuch form,accompaniedbysuchfeeandverifiedin suchmannerasmaybeprescribed. 528(241) Constitutionof AppellateAuthorityfor AdvanceRuling. AppealtotheAppellate Authority. 528(242) ReageUses,fer12FA2017 101. (1) The Appellate Authority may, after giving the Orders of Appellate parties to the appeal or reference an opportunity of Authority. being heard, pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to. (2) The order referred to in sub-section (1) shall be passed within a period of ninety days from the date of filing of the appeal under section or a reference under sub-section (5) of section 98. (3) Where the members of the Appellate Authority differ on any point or points referred to in appeal or reference, it shall be deemed that no advance ruling can be issued in respect of the question under the appeal or reference. (4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by the Members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer, the jurisdictional officer and to the Authority after such pronouncement. 102. The Authority or the Appellate Authority may amend any order passed by it under section or section 101, so as to rectify any error apparent on the face of the record, if such error is noticed’ by the Authority or the Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer, or the applicant or . the appellant within a period of six months from the date of the order: Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made unless the applicant or the appellant has been given an opportunity of being heard. 103. (1) Theadvance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only - (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section for advance ruling; Rectificationof advanceruling. Applicability advanceruling. -of FINUsa,fea12YA2017 (b)ontheconcernedofficerorthejurisdictional officerinrespectoftheapplicant. (2)Theadvancerulingreferredtoinsub-section(1) shallbebindingunlessthelaw,factsor circumstancessupportingtheoriginaladvance rulinghavechanged. 104.(1)WheretheAuthorityortheAppellate Authorityfindsthatadvancerulingpronouncedbyit undersub-section(4)ofsection98orundersub- section(1)ofsection101hasbeenobtainedbythe applicantortheappellantbyfraudorsuppressionof materialfactsormisrepresentationoffacts,itmay, by order,declaresuchrulingtobevoidab-initioand thereuponalltheprovisionsofthisActortherules madethereundershallapplytotheapplicantorthe appellantasifsuchadvancerulinghadneverbeen made: Providedthatnoordershallbepassedunderthissub-- sectionunlessanopportunityofbeingheardhasbeen giventotheapplicantortheappellant. Explanation.—Theperiodbeginningwiththedateof *suchadvancerulingandendingwiththedateoforder 'underthissub-sectionshallbeexcludedwhilecomputing theperiodspecifiedinsub-sections(2)and(10)ofsection 73orsub-sections(2)and(10)ofsection74. (2)Acopyoftheordermadeundersub-section(1) shallbesenttotheapplicant,theconcerned officerandthejurisdictionalofficer. 105.(1)TheAuthorityortheAppellate Authorityshall, forthepurposeofexercisingitspowersregarding— (a)discoveryandinspection; (b)enforcingtheattendanceofanypersonand examininghimonoath; (c)issuingcommissionsandcompellingproduction ofbooksofaccountandotherrecords, of 1908. have all the powers of a civil court under the Code of Civil Procedure, 1908. 528(243) Advancerulingtobe voidincertain circumstances. Powersof and Authority. Authority© Appellate 528(244) 2of1974. 45of1860. ReeUsa,feats12FA2017 (2) The Authority or the Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973, and every proceeding before the Authority or the Appellate Authority shall be deemed to be a judicial proceedings within the meaning of sections and 228, and for the purpose of section of the Indian Penal Code. 106. The Authority or the Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure. CHAPTERXVIII APPEALSANDREVISION 107. (1) Any person aggrieved by any decision or order passed under this Act or the Central Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person. (2) The Commissioner may, on his own motion, or upon request from theCommissioner of central tax, callfor and examine therecord ofany proceeding inwhich an adjudicating authority has passed any decision ororder underthisActor the Central Goods and Services Tax Act, forthe purpose ofsatisfying himself as tothe legality or propriety of thesaid decision ororder and may, by order, direct any officer subordinate tohim to apply tothe Appellate Authority withinsix months from thedate ofcommunication of the said decision or order for thedetermination of suchpoints arising out ofthe saiddecision or order asmaybe specified bytheCommissioner in his order. (3)Where,inpursuanceof anorderundersub-section (2),theauthorisedofficermakesanapplicationto theAppellateAuthority,suchapplicationshallbe dealtwithbytheAppellateAuthorityasifitwere ProcedureofAuthority andAppellate Authority. AppealstoAppellate Authority. HemeUsa,fei12FA2017 anappealmadeagainstthedecisionororderof theadjudicatingauthorityandsuchauthorised officerwereanappellantandtheprovisionsof thisActrelatingtoappealsshallapplytosuch application. (4)TheAppellate Authoritymay,ifheissatisfied thattheappellantwaspreventedbysufficient causefrompresentingtheappealwithinthe aforesaidperiodofthreemonthsorsixmonths,as thecasemaybe,allowittobepresentedwithina furtherperiodofonemonth. (5) Every appeal under this section shall be in such form and shall be verified in such manner as may beprescribed. (6) No appeal shall be filed under sub-section (1), unless the appellant has paid — (a)infull,suchpartoftheamountoftax,interest, fine,feeandpenaltyarisingfromtheimpugnedorder, asisadmittedbyhim;and (b)asumequaltotenpercentoftheremaining amountoftaxindisputearisingfromthesaidorder,in relationtowhichtheappealhasbeenfiled. (7)Wheretheappellanthaspaid‘theamountunder sub-section(6),therecoveryproceedingsforthe balanceamountshallbedeemedtobestayed. (8)TheAppellateAuthorityshallgiveanopportunity totheappellantofbeingheard. (9)TheAppellateAuthoritymay,ifsufficientcause isshownatanystageofhearingofanappeal, -granttime.tothepartiesoranyofthemand adjournthehearingoftheappealforreasonstobe| recordedinwriting: Providedthatnosuchadjournmentshallbegranted morethanthreetimestoapartyduringhearingofthe appeal. 528(245) 528(246)eIwaa,feats12FA2017 (10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable. (11)TheAppellateAuthorityshall,aftermaking suchfurtherinquiryasmaybenecessary,pass suchorder,asitthinksjustandproper, confirming,modifyingorannullingthedecision ororderappealedagainstbutshallnotreferthe casebacktotheadjudicatingauthoritythatpassed thesaiddecisionororder: Providedthatanorderenhancinganyfeeor penaltyorfinein lieuofconfiscationorconfiscating goodsofgreatervalueorreducingtheamountof refundorinputtaxcreditshallnotbepassedunless theappellanthasbeengivenareasonableopportunity ofshowingcauseagainsttheproposedorder: Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section or section 74. (12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision. (13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on whichitisfiled: Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year. Heeusa,fete12A2017 (14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority. . (15) A copy of the order passed by the Appellate Authority shall also be sent to the Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of central tax or an authority designated by him in this behalf. (16) Every order passed under this section shall, subject to the provisions of section or section or section or section be final and binding on the parties. 108. (1) Subject to the provisions of section and any rules made thereunder, the Revisional Authority may, on his own motion, or upon information received by him or on request from the Commissioner of ‘central tax, call for and examine the record of any proceedings, and if he considers that any decision or order passed under this Act or under the Central Goods and Services Tax Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such | further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order. (2) The Revisional Authority shall not exercise any power under sub-section (1), if— ‘ (a) the order has been subject to an appeal under section or section or section or section 118; or. 528(247) PowersofRevisional Authority. 528(248)RegerUsa,feqie12FA2017 (b) the period specified under sub-section (2) of section has not yet expired or more than three _ years have expired after the passing of the decision or ordersoughttoberevised;or (c)theorderhasalreadybeentakenforrevision underthissectionatanearlierstage;or (d)theorderhasbeenpassedinexerciseofthe powersundersub-section(1): ProvidedthattheRevisionalAuthoritymaypass anorderundersub-section(1)onanypointwhichhas notbeenraisedanddecidedinanappealreferredtoin clause(a)ofsub-section(2),beforetheexpiryofa periodofoneyearfromthedateoftheorderinsuch appealorbeforetheexpiryofaperiodofthreeyears referredto inclause(b)ofthatsub-section,whichever islater. (3)Everyorderpassedinrevisionundersub-section (1)shall,subjecttotheprovisionsofsection113 orsection117orsection118,befinalandbinding ontheparties. (4) If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court or the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section. (5) Where the issuance of an order under sub-section (1) is stayed by the order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2). ° 5of1908. 5of1908. HegreUsa,fea12VA2017 (6) For the purposes of this section, the term,— (i) “record” shall include all records relating to any proceedings under this Act available at the time of examination by the Revisional Authority; (ii) “decision” shall include intimation given by any officer lower in rank than the Revisional Authority. 109. (1) Subject to the provisions of this Chapter, the Goods and Services Tax Tribunal constituted under the Central Goods and Services Tax Act shall be the Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority under this Act. (2) The constitution and jurisdiction of the State Bench and the Area Benches located in the State shall be in accordance with the provisions of section of the Central Goods and Services Tax Act or the rules made thereunder, 110. The qualifications, appointment, salary and allowances, terms of office, resignation and removal of the President and Members of the State Bench and Area Benches shall be in accordance with the provisions of section of the Central Goods and Services Tax Act. 111. (1) The Appellate Tribunal shall. not, while disposing of any proceedings before it or an appeal before it, be bound by the procedure laid down in the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and subject to the other provisions of this Act and the rules made thereunder, the Appellate Tribunal shall have power to regulate its own procedure. (2)TheAppellateTribunalshall,forthepurposesof dischargingitsfunctionsunderthisAct,havethe samepowersasarevestedinacivilcourtunder theCodeofCivilProcedure,1908,whiletryinga suitinrespectofthefollowingmatters,namely:— (a)summoningandenforcingtheattendanceofany personandexamininghimonoath; 528(249) AppellateTribunaland Benchesthereof. PresidentandMembers ofAppellateTribunal, theirqualification, appointment,conditions ofservice,etc. Procedurebefore AppellateTribunal. 528(250)HeewsTa,fete12FA2017 (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections and of of 1872. the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document fromanyoffice; (e) issuing commissions for the examination of witnesses or documents; (f) dismissing a representation for default or deciding it ex parte; (g) setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and (h)anyothermatterwhichmaybeprescribed. (3) Any order made by the Appellate Tribunal may be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,— (a) in the case of an order against a company, the registered office of the company is situated; or b) in the case of an order against any other person, the berson concerned voluntarily resides or carries on business or personally works for gain. (4) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within of 1860. the meaning of sections and 228, and for the purposes of section of the Indian Penal Code, and the Appellate Tribunal shall be deemed to be of 1974. civil court for the purposes of section and Chapter XXVI of the Code of Criminal Procedure, 1973. 112. (1) Any person aggrieved by an order passed Appeals to Appellate against him under section or section of this Tribunal. Heewets,fetish12FA2017528(251) ActortheCentralGoodsandServicesTaxActmay appealtotheAppellateTribunalagainstsuchorder withinthreemonthsfromthedateonwhichtheorder soughttobeappealedagainstiscommunicatedtothe personpreferringtheappeal. (2)TheAppellateTribunalmay,initsdiscretion, refusetoadmitanysuchappealwherethetaxor inputtaxcreditinvolvedorthedifferenceintaxor inputtaxcreditinvolvedortheamountoffine,fee orpenaltydeterminedbysuchorder,doesnot exceedfiftythousandrupees. (3)TheCommissionermay,onhisownmotion,or uponrequestfromtheCommissionerofcentral tax,callforandexaminetherecordofanyorder passedbytheAppellateAuthorityorthe RevisionalAuthorityunderthisActorunderthe CentralGoodsandServicesTaxActforthe purposeofsatisfyinghimselfastothelegalityor proprietyofthesaidorderandmay,byorder, directanyofficersubordinatetohimtoapplyto theAppellateTribunalwithinsixmonthsfromthe dateonwhichthe saidorderhasbeenpassedfor determinationofsuchpointsarisingoutofthe saidorderasmaybespecifiedbythe Commissionerinhisorder. (4)Whereinpursuanceofanorderundersub-section (3)theauthorisedofficermakesanapplicationto theAppellateTribunal,suchapplicationshallbe dealtwithbytheAppellateTribunalasifitwere anappealmadeagainsttheorderundersub- section(11)ofsection107orundersub-section (1)ofsection108andtheprovisionsofthisAct shallapplytosuchapplication,astheyapplyin relationtoappealsfiledundersub-section(1). (5)Onreceiptofnoticethatanappealhasbeen preferredunderthissection,thepartyagainst whomtheappealhasbeenpreferredmay, notwithstandingthathemaynothaveappealed againstsuchorderoranypartthereof,file,within fortyfivedays ofthereceiptofnotice,a memorandumofcross-objections,verifiedinthe prescribedmanner,againstanypartoftheorder 528(252) HeeUsT,fe12YA2017 appealedagainstandsuchmemorandumshailbe disposedofbytheAppellateTribunal,asifit wereanappealpresentedwithinthetimespecified insub-section(1). (6)TheAppellateTribunalmayadmitanappeal withinthreemonthsaftertheexpiryoftheperiod referredtoinsub-section(1),orpermitthefiling ofamemorandumofcross-objectionswithinforty fivedaysaftertheexpiryoftheperiodreferredto insub-section(5),ifitissatisfiedthattherewas sufficientcausefornotpresentingitwithinthat period. (7)AnappealtotheAppellateTribunalshallbein suchform,verifiedinsuchmannerandshallbe accompaniedbysuchfee,asmaybeprescribed. (8)Noappealshallbefiledundersub-section(1), unlesstheappellanthaspaid— (a)infull,suchpartoftheamountoftax,interest, fine,feeandpenaltyarisingfromtheimpugnedorder, asisadmittedbyhim,and (b)asumequaltotwentypercent.ofthe remainingamountoftaxindispute,inadditiontothe amountpaidundersub-section(6)ofthesection107, arisingfromthesaidorder,inrelationtowhichthe appealhasbeenfiled. (9)Wheretheappellanthaspaidtheamountasper sub-section(8),therecoveryproceedingsforthe balanceamountshallbedeemedtobestayedtill thedisposaloftheappeal. (10)EveryapplicationmadebeforetheAppellate Tribunal,— (a)inanappealforrectificationoferrororforany other purpose; or ; (b)forrestorationofanappealoranapplication, shallbeaccompaniedbysuchfeesasmaybeprescribed. 113.(1)TheAppellateTribunalmay,aftergivingthe partiestotheappealanopportunityofbeingheard, passsuchordersthereonasitthinksfit,confirming, OrdersofAppellate Tribunal. Reaganwera,fern12FA2017 modifyingorannullingthedecisionororderappealed againstormayreferthecasebacktotheAppellate Authority,ortheRevisionalAuthorityortothe originaladjudicatingauthority,withsuchdirectionsas itmaythinkfit,forafreshadjudicationordecision aftertakingadditionalevidence,ifnecessary. (2)TheAppellateTribunalmay,ifsufficientcauseis shown,atanystageofhearingofanappeal,grant timetothepartiesoranyofthemandadjournthe hearingoftheappealforreasonstoberecordedin writing: Providedthatnosuchadjournmentshallbegranted morethanthreetimestoapartyduringhearingofthe appeal. (3)TheAppellateTribunalmayamendanyorder passedbyitundersub-section(1)soastorectify anyerrorapparentonthefaceoftherecord,if sucherrorisnoticedbyitonitsownaccord,oris broughttoitsnoticebytheCommissionerorthe Commissionerofcentraltaxortheotherpartyto theappealwithinaperiodofthreemonthsfrom thedateoftheorder: Providedthatnoamendmentwhichhastheeffect ofenhancinganassessmentorreducingarefundor inputtaxcreditorotherwiseincreasingtheliabilityof theotherparty,shallbemadeunderthissub-section, unlessthepartyhasbeengivenanopportunityof beingheard. (4) TheAppellateTribunalshall,asfaraspossible, hearanddecideeveryappealwithinaperiodof oneyearfromthedateonwhichitisfiled. (5)TheAppellateTribunalshallsendacopyofevery orderpassedunderthissectiontotheAppellate Authority ortheRevisionalAuthority,orthe originaladjudicatingauthority,as thecasemay be,theappellantandtheCommissionerorthe jurisdictionalCommissionerofcentraltax. (6)Saveasprovidedinsection117orsection118, orderspassedbytheAppellateTribunalonan appealshallbefinalandbindingontheparties. 528(253) 528(254) Heeusta,fer12FA2017 114,TheStatePresidentshallexercisesuchfinancial andadministrativepowersovertheStateBenchand AreaBenchesoftheAppellateTribunalinaState,as maybeprescribed: ProvidedthattheStatePresidentshall-havetheauthority todelegatesuchofhisfinancialandadministrative powers as he may think fit to any other Member or any officeroftheStateBenchorAreaBenches,subjecttothe condition that such Member or officer shall, while exercising such delegated powers, continue to act under the direction, control and supervision of the State President. 115. Where an amount paid by the appellant under sub- section (6) of section or sub-section (8) of section is required to be refunded consequent to any order of the Appellate Authority or of the Appellate Tribunal, interest at the rate specified under section shall be payable in respect of such refund from the date of payment of the amount till the date of refund ofsuchamount. 116. (1) Any person who is entitled or required to appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings under this Act, may, otherwise than when required under this Act to appear personally for examination on oath or affirmation, subject to the other provisions of this section, appear by an authorised representative. (2)ForthepurposesofthisAct,theexpression “authorisedrepresentative”shallmeanaperson authorisedbythepersonreferredtoinsub-section (1)toappearonhisbehalf,being— (a)hisrelativeorregularemployee;or (b)anadvocatewhoisentitledtopracticeinany courtinIndia,andwhohasnotbeendebarredfrom practicingbeforeanycourtinIndia;or (c)anycharteredaccountant,acostaccountantora companysecretary,whoholdscertificateofpractice andwhohasnotbeendebarredfrompractice;or Financialand administrativepowers of StatePresident. Interestonrefundof amountpaidfor admissionofappeal. Appearanceby authorised representative. Fee,wera,feat12FA2017528(255) (d)aretiredofficeroftheCommercialTax Department of any State Government or Union territory or of the Board who, during his service under the Government, had worked in a post not below the rank than that of a Group-B Gazetted officer for a periodofnotlessthantwoyears: Provided that such officer shall not be entitled to appear before any proceedings under this Act for a period of one year from the date of his retirement or resignation; or (e) any person who has been authorised to act as a goods and services tax practitioner on behalf of the concerned registered person. (3)Noperson,— (a) who has been dismissed or removed from Government service; or (b) who is ‘convicted of an offence connected with any proceedings under this Act, the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, or under the existing law or under any of the Acts passed by a State Legislature dealing with the imposition of taxes on sale of goods or supply of goods orservices or both; or (c)whoisfoundguiltyofmisconductbytheprescribed authority; (d)whohasbeenadjudgedasaninsolvent, shallbequalifiedtorepresentanypersonundersub- section(1)}— (i)foralltimesincaseofpersonsreferredto in clauses(a),(b)and(c);and (ii)fortheperiodduringwhichtheinsolvency continuesinthecaseofapersonreferredtoin clause(d). (4)Anypersonwhohasbeendisqualifiedunderthe provisionsoftheCentralGoodsandServicesTax 528(256) Feayeusta,fei12YA2017 ActortheGoodsandServicesTaxActofany otherStateortheUnionTerritoryGoodsand ServicesTaxActshallbedeemedtobe disqualifiedunderthisAct. 117.(1)Anypersonaggrievedbyanyorderpassedby theStateBenchorAreaBenchesoftheAppellate TribunalmayfileanappealtotheHighCourtandthe HighCourtmayadmitsuchappeal,ifitissatisfied thatthecaseinvolvesasubstantialquestionoflaw. (2)Anappealundersub-section(1)shallbefiled withinaperiodofonehundredandeightydays fromthedateonwhichtheorderappealedagainst isreceivedbytheaggrievedpersonanditshallbe insuchform,verifiedinsuchmannerasmaybe prescribed: ProvidedthattheHighCourtmayentertainan appealaftertheexpiryofthesaidperiodifitis satisfiedthattherewassufficientcausefornotfilingit withinsuchperiod. (3)WheretheHighCourtissatisfiedthata substantialquestionoflawisinvolvedinanycase, itshallformulatethatquestionandtheappeal shallbeheardonlyonthequestionsoformulated, andtherespondentsshall,atthehearingofthe appeal,beallowedtoarguethatthecasedoesnot involvesuchquestion: Providedthatnothinginthissub-sectionshallbe deemedtotakeawayorabridgethepowerofthecourtto hear,forreasonstoberecorded,theappealonanyother substantialquestionoflawnotformulatedbyit,ifitis satisfiedthatthecaseinvolvessuchquestion. (4)TheHighCourtshalldecidethequestionoflaw soformulatedanddeliversuchjudgmentthereon containing the grounds on which such decision is foundedandmayawardsuchcostasitdeemsfit. (5) The High Court may determine any issue which— (a) has not been determined by the State Bench or Area Benches; or AppealtoHighCourt. 5of1908 5of1908 Heewars,fette12FA2017 (b)hasbeenwronglydeterminedbytheState BenchorAreaBenches,byreasonofadecisionon suchquestionoflawashereinreferredtoinsub- section(3). (6)WhereanappealhasbeenfiledbeforetheHigh Court,itshallbeheardbyaBenchofnotlessthan twoJudgesoftheHighCourt,andshallbe decidedinaccordancewiththeopinionofsuch Judgesorofthemajority,ifany,ofsuchJudges. (7) Where there is no such majority, the Judges shall State the point of law upon which they differ and the case shall, then, be heard upon that point only, by one or more of the other Judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it. (8) Where the High Court delivers a judgment in an appeal filed before it under this section, effect shall be given to such judgment by either side on the basis of a certified copy of the judgment. (9)SaveasotherwiseprovidedinthisAct,the provisionsoftheCodeofCivilProcedure,1908, relatingtoappealstotheHighCourtshall,asfar asmaybe,applyinthecaseofappealsunderthis section. 118.(1)AnappealshalllietotheSupremeCourt- (a)fromanyorderpassedbytheNationalBenchor RegionalBenchesoftheAppellateTribunal;or (b)fromanyjudgmentororderpassedbytheHighCourt inanappealmadeundersection117inanycasewhich, onitsownmotionoronanapplicationmadebyoron behalfofthepartyaggrieved,immediatelyafterpassing ofthejudgmentororder,theHighCourtcertifiestobea fitoneforappealtotheSupremeCourt. (2)TheprovisionsoftheCodeofCivilProcedure, 1908,relatingtoappealstotheSupremeCourt shall,sofarasmaybe,applyinthecaseof 528(257) AppealtoSupreme Court. 528(258)Heerwera,feti12FA2017 appealsunderthissectionastheyapplyinthecase ofappealsfromdecreesofaHighCourt. (3)WherethejudgmentoftheHighCourtisvariedor reversedintheappeal,effectshallbegiventothe _-orderoftheSupremeCourtinthemanner providedinsection117inthecaseofajudgment oftheHighCourt. 119.NotwithstandingthatanappealhasbeenpreferredSumsduetobepaid to the High Court or the Supreme Court, sums due to notwithstanding appeal theGovernmentasaresultofanorderpassedbytheetc. NationalorRegionalBenchesoftheAppellate Tribunalundersub-section(1)ofsection113oran orderpassedbytheStateBenchorAreaBenchesof theAppellateTribunalundersub-section(1)of section113oranorderpassedbytheHighCourt undersection117,asthecasemaybe,shallbe payableinaccordancewiththeordersopassed. 120. (1) The Commissioner may, on the Appeal not to be filed recommendations of the Council, from time to time, in certain cases. issue orders or instructions or directions fixing such monetary limits, as he may deem fit, for the purposes of regulating the filing of appeal or application by the officer of the State tax under the provisions of this Chapter. (2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the officer of the State tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the State tax from filing appeal or application in any other case involving the same or similar issues or questions of law. (3) Notwithstanding the fact that no appeal or application has been filed by the officer of the State tax pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a party in appeal or application shall contend that the officer of the State tax has acquiesced in the decision on the disputed issue by not filing an appeal or application. HeeUsa,fetie12FA2017528(259) (4)TheAppellateTribunalorcourthearingsuch appealorapplicationshallhaveregardtothe circumstancesunderwhichappealorapplication wasnotfiledbytheofficeroftheStatetaxin pursuanceoftheordersorinstructionsor directionsissuedundersub-section(1). 121. Notwithstanding anything to the contrary in any Non appealable provisions of this Act, no appeal shall lie against any decisions and orders. decision taken or order passed by an officer of State tax if such decision taken or order passed relates to any one or more of the following matters, namely:— (a) an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer; or (b) an order pertaining to the seizure or retention of books of account, register and other documents; or (c) an order sanctioning prosecution under this Act; or (d)anorderpassedundersection80. CHAPTERXIX OFFENCESANDPENALTIES 122. (1) Where a taxable person who— - Penalty for certain. offences. (i)suppliesanygoodsorservicesorbothwithout issueofanyinvoiceorissuesanincorrectorfalse invoicewithregardtoanysuchsupply; (ii)issuesanyinvoiceorbillwithoutsupplyof goodsorservicesorbothinviolationoftheprovisions ofthisActortherulesmadethereunder; (iii)collectsanyamountastaxbutfailstopaythe sametotheGovernmentbeyondaperiodofthree monthsfromthedateonwhichsuchpaymentbecomes due; (iv)collectsanytaxincontraventionofthe provisionsofthisActbutfailstopaythesametothe 528(260)Feewsrya,feats12YA2017 Government beyond a.period of three months from the date on which such payment becomes due; (v) fails to deduct the tax in accordance with the provisions of sub-section (1) of section 51, or deducts an amount which is less than the amount required to be deducted under the said sub-section, or where he fails to pay to the Government under sub-section (2) thereof, the amount deducted as tax; (vi) fails to collect tax in accordance with the provisions of sub-section (1) of section 52, or collects an amount which is less than the amount required to be collected under the said sub-section or where he fails to pay to the Government the amount collected as tax under sub-section (3) of section 52; (vii) takes or utilizes input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act or the rules made thereunder; (viii) fraudulently obtains refund of tax under this Act; (ix) takes or distributes input tax credit in contravention of section 20, or the rules made thereunder; : (x) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information or return with an intention to evade payment of tax due under this Act; (xi) is liable to be registered under this Act but fails to obtain registration; (xii)furnishesanyfalseinformationwithregardto registrationparticulars,eitheratthetimeofapplying forregistration,orsubsequently; (xiii)obstructsorpreventsanyofficerindischarge ofhisdutiesunderthisAct; (xiv)transportsanytaxablegoodswithoutthe. coverofdocumentsasmaybespecifiedinthisbehalf; Heerterra,feats12YA2017 (xv)suppresseshisturnoverleadingtoevasionof taxunderthisAct; (xvi)failstokeep,maintainorretainbooksof accountandotherdocumentsinaccordancewiththe provisionsofthisActortherulesmadethereunder; (xvii)failstofurnishinformationordocuments calledforbyanofficerinaccordancewiththe provisionsofthisActortherulesmadethereunderor furnishesfalseinformationordocumentsduringany proceedingsunderthisAct; (xviii)supplies,transportsorstoresany goods whichhehasreasonstobelieveareliableto confiscationunderthisAct; (xix)issuesanyinvoiceordocumentbyusingthe registrationnumberofanotherregisteredperson; (xx)tamperswith,ordestroysanymaterial evidencedrdocuments; (xxi)disposesoffortamperswithanygoodsthat havebeendetained,seized,orattachedunderthisAct, heshallbeliabletopayapenaltyoftenthousandrupees oranamountequivalenttothetaxevadedorthetaxnot deductedundersection51orshortdeductedordeducted butnot paidtotheGovernmentortaxnotcollectedunder section52orshortcollectedorcollectedbutnotpaidto theGovernmentorinputtaxcreditavailedoforpassedon ordistributedirregularly,ortherefundclaimed fraudulently,whicheverishigher. (2)Anyregisteredpersonwhosuppliesanygoodsor servicesorbothonwhichanytaxhasnotbeen paidorshort-paidorerroneouslyrefunded,or wheretheinputtaxcredithasbeenwrongly availedorutilized,- (a)foranyreason,otherthanthereasonoffraud oranywilfulmisstatementorsuppressionof factstoevadetax,shallbeliabletoapenalty ’oftenthousandrupeesortenpercent.ofthe| taxduefromsuchperson,whicheverishigher; 528(261) 528(262)FeeUeda,fetta12FA2017 (b)forreasonoffraudoranywilfulmisstatement orsuppressionoffactstoevadetax,shallbe liabletoapenaltyequaltotenthousandrupees orthetaxduefromsuchperson,whicheveris higher. (3)Anypersonwho— (a)aidsorabetsany oftheoffencesspecifiedin clauses(i)to(xxi)ofsub-section(1); (b)acquirespossessionof,orinanywayconcerns himselfintransporting,removing,depositing, keeping,concealing,supplying,orpurchasingorin anyothermannerdealswithanygoodswhichhe knowsor.hasreasonstobelieveareliableto confiscation under this Act or the rules made thereunder; (c) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; (d)failstoappearbeforetheofficerofStatetax, whenissuedwithasummonforappearancetogive evidenceorproduceadocumentinaninquiry; (e)failstoissueinvoiceinaccordancewiththe provisionsofthisActortherulesmadethereunderor failstoaccountforaninvoiceinhisbooksof account, shallbeliabletoapenaltywhichmayextendtotwenty fivethousandrupees. 123.Ifapersonwhoisrequiredtofurnishan informationreturnundersection150failstodoso withintheperiodspecifiedinthenoticeissuedunder sub-section(3)thereof,theproperofficermaydirect, thatsuchpersonshallbeliabletopayapenaltyofone hundredrupeesforeachdayoftheperiodduring whichthefailuretofurnishsuchreturncontinues: Providedthatthepenaltyimposedunderthissection shallnotexceedfivethousandrupees. Penaltyforfailureto furnish return. information Heewsrra,fee12FA2017528(263) 124. If any person required to furnish any information Fine for failure to or return under section 151,— furnish statistics. (a)withoutreasonablecausefailstofurnishsuch informationorreturnasmayberequiredunderthat section,or (b)wilfullyfurnishesorcausestofurnishany informationorreturnwhichheknowstobefalse, heshallbepunishablewithafinewhichmayextendto tenthousandrupeesandincaseofacontinuingoffence toafurtherfinewhichmayextendtoonehundredrupees foreachdayafterthefirstdayduringwhichtheoffence continuessubjecttoamaximumlimitoftwentyfive thousandrupees. 125.Anyperson,whocontravenesanyoftheGeneralpenalty. provisionsofthisActoranyrulesmadethereunder forwhichnopenaltyisseparatelyprovidedforinthis Act,shallbeliabletoapenaltywhichmayextendto twentyfivethousandrupees. 126.(1)NoofficerunderthisActshallimposeanyGeneraldisciplines penalty for minor breaches of tax regulations or related to penalty. proceduralrequirementsandinparticular,any omissionormistakeindocumentationwhichiseasily rectifiableandmadewithoutfraudulentintentorgross negligence. Explanation.—Forthepurposeofthissub-section,— (a)abreachshallbeconsidereda‘minorbreach’if the amount of tax involved is less than five thousand rupees; (b) an omission or mistake in documentation shall be considered to be easily rectifiable if the same is an - error apparent on the face of record. (2) The penalty imposed under this Act shall depend on the facts and circumstances of each case and shall commensurate with the degree and severity ofthebreach. (3) No penalty shall be imposed on any person without giving him an opportunity of being heard. 528(264) HeeUIT,Teh12YA2017 128. (4) The officer under this Act shall while imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature of the breach and the applicable law, regulation or procedure under which the amount of penalty for the breach has been specified. (5) When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact as a mitigating factor when quantifying a penalty for that person. (6)Theprovisionsofthissectionshallnotapplyin suchcaseswherethepenaltyspecifiedunderthis Actiseitherafixedsumorexpressedasafixed percentage. 127.Wheretheproperofficerisoftheviewthata personisliabletoapenaltyandthesameisnot coveredunderanyproceedingsundersection62or section63orsection64orsection73orsection74or section or section 130, he may issue an order levyingsuchpenaltyaftergivingareasonable opportunityofbeingheardtosuchperson. The Government may, by notification, waive in part or full, any penalty referred to in section or section or section or any late fee referred to in section for such class of taxpayers and under such mitigating circumstances as may be specified therein on the recommendations of the Council. 129. (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,— Powertoimpose penaltyincertaincases. Powertowaivepenalty orfeeorboth Detention,seizureand releaseofgoodsand conveyancesintransit. Feews,fet12FA2017 (a)onpaymentoftheapplicabletaxandpenaltyequalto onehundredpercent.ofthetaxpayableonsuchgoods and,incaseofexemptedgoods,onpaymentofanamount equaltotwopercentofthevalueofgoodsortwentyfive thousandrupees,whicheverisless,wheretheownerof thegoodscomesforwardforpayment‘ofsuchtaxand penalty; (b)onpaymentoftheapplicabletaxandpenaltyequal tothefiftypercent.ofthevalueofthegoods reducedbythetaxamountpaidthereonand,in caseofexemptedgoods,onpaymentofanamount equaltofivepercentofthevalueofgoodsor twentyfivethousandrupees,‘whicheverisless, wheretheownerofthegoodsdoesnotcome forwardforpaymentofsuchtaxandpenalty; (c)uponfurnishingasecurityequivalenttothe amountpayableunderclause(a)orclause(b)in- suchformandmannerasmaybeprescribed: Providedthatnosuchgoodsorconveyanceshallbe detainedorseizedwithoutservinganorderof detentionorseizureonthepersontransportingthe goods. (2)Theprovisionsofsub-section(6)ofsection67shall, mutatismutandis,applyfordetentionandseizureof goodsandconveyances. (3)Theproperofficerdetainingorseizinggoodsor conveyancesshallissueanoticespecifyingthetax andpenaltypayableandthereafter,passanorderfor paymentoftaxandpenaltyunderclause(a)orclause (b)orclause(c). (4)Notax,interestorpenaltyshallbedeterminedunder sub-section(3)withoutgivingthepersonconcerned anopportunityofbeingheard. (5)Onpaymentofamountreferredinsub-section(1),all proceedingsinrespectofthenoticespecifiedinsub- section(3)shallbedeemedtobeconcluded. (6)Wherethepersontransportinganygoodsortheowner ofthegoodsfailstopaytheamountoftaxandpenalty 528(265) 528(266) Heewet,feqiee12FA2017 as provided in sub-section (1) within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section _130: Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer. 130. (1) Notwithstanding anything contained in this Confiscation of goods Act, if any person — or conveyances and levyofpenalty. (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder withintenttoevadepaymentoftax;or (ii) does not account for any goods on which he is liable topaytaxunderthisAct;or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax;or (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122. (2) Whenever confiscation of any goods or conveyance is — authorised by this Act, the officer adjudging it shall FeeUsa,fetis12YA2017 givetotheownerofthegoodsanoptiontopayinlieu of-confiscation,suchfineasthesaidofficerthinksfit: Providedthatsuchfineleviableshallnotexceed themarketvalueofthegoodsconfiscated,lessthetax chargeablethereon: Providedfurtherthattheaggregateofsuchfineand penaltyleviableshallnotbelessthantheamountof penaltyleviableundersub-section(1)ofsection129: Providedalsothatwhereanysuchconveyanceis usedforthecarriageofthegoodsorpassengersfor hire,theowneroftheconveyanceshallbegivenan optiontopayin lieuoftheconfiscationofthe conveyanceafineequaltothetaxpayableonthe goodsbeingtransportedthereon. (3)Whereanyfine inlieuofconfiscationofgoodsor conveyanceisimposedundersub-section(2),the ownerofsuchgoodsorconveyanceortheperson referredto insub-section(1),shall,inaddition,be liabletoanytax,penaltyandchargespayablein respectof suchgoodsorconveyance. (4)Noorderforconfiscationofgoodsorconveyanceor forimpositionofpenaltyshallbeissuedwithout givingthepersonanopportunityofbeingheard. (5) Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government. (6) The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession. (7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof withtheGovernment. 528(267) 528(268) 2of1974. HeeUsa,feria12FA2017 131.Withoutprejudicetotheprovisionscontainedin theCodeofCriminalProcedure,1973,noconfiscation madeorpenaltyimposedundertheprovisionsofthis Actortherulesmadethereundershallpreventthe inflictionofanyotherpunishmenttowhichtheperson affectedtherebyisliableundertheprovisionsofthis Actorunderanyotherlawforthetimebeinginforce. 132.(1)Whoevercommitsanyofthefollowing. offences,namely:— (a)suppliesanygoodsorservicesorbothwithoutissueof anyinvoice,inviolationoftheprovisionsofthisActor therulesmadethereunder,withtheintentiontoevadetax; (b)issuesanyinvoiceorbillwithoutsupplyofgoodsor servicesorbothinviolationoftheprovisionsofthisAct, or therulesmadethereunderleadingtowrongful availmentorutilisationofinputtaxcreditorrefundof tax; (c)availsinputtaxcreditusingsuchinvoiceorbill referredtoinclause(b); (d)collectsanyamountastaxbutfailstopaythesameto| theGovernmentbeyondaperiodofthreemonthsfromthe dateonwhichsuchpaymentbecomesdue; (e)evadestax,fraudulentlyavailsinputtaxcreditor fraudulentlyobtainsrefundandwheresuchoffenceisnot coveredunderclauses(a)to(d); (f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act; (g) obstructs or prevents any officer in the discharge of his duties under this Act; (h) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, purchasing or in any other manner Confiscationorpenalty nottointerferewith otherpunishments. Punishmentforcertain offences weaWaT,fete12FA2017 dealswith,anygoodswhichheknowsorhasreasonsto believeareliabletoconfiscationunderthisActorthe rulesmadethereunder; (i)receivesorisinanywayconcernedwiththesupplyof, orinanyothermannerdealswithanysupplyofservices whichheknowsorhasreasonstobelievearein contraventionof anyprovisionsofthisActortherules madethereunder; (j)tamperswithordestroysanymaterialevidenceor documents; (k)failstosupplyanyinformationwhichheisrequiredto supplyunderthisActortherulesmadethereunderor (unlesswithareasonablebelief,theburdenofproving whichshallbeuponhim,thattheinformationsuppliedby himistrue)suppliesfalseinformation;or (1)attemptstocommit,orabetsthecommissionofanyof theoffencesmentionedinclauses(a)to(k)ofthissection, shallbepunishable— (i)incaseswheretheamountoftaxevadedortheamount— ofinputtaxcreditwronglyavailedorutilisedorthe amountofrefundwronglytakenexceedsfivehundred lakhrupees,withimprisonmentforatermwhichmay extendto fiveyearsandwithfine; (ii)incaseswheretheamountoftaxevadedorthe amountofinputtaxcreditwronglyavailedorutilisedor theamountofrefundwronglytakenexceedstwohundred lakhrupeesbutdoesnotexceedfivehundredlakhrupees, withimprisonmentforatermwhichmayextendtothree yearsandwithfine; (iii)inthecaseofanyotheroffencewheretheamountof taxevadedor theamountofinputtaxcreditwrongly availedorutilisedortheamountofrefundwronglytaken exceedsonehundredlakhrupeesbutdoesnotexceedtwo hundredlakhrupees,withimprisonmentforatermwhich mayextendtooneyearandwithfine; 528(269) 528(270) Feeusa,fers12VA2017 (iv)incaseswherehecommitsorabetsthecommission ofanoffencespecifiedinclause(f)orclause(g)orclause (j),heshallbepunishablewithimprisonmentforaterm whichmayextendtosixmonthsorwithfineorwithboth. (2)Whereanypersonconvictedofanoffenceunderthis sectionisagainconvictedofanoffenceunderthis section,then,heshallbepunishableforthesecond andforevery subsequentoffencewithimprisonment foratermwhichmayextendtofiveyearsandwith fine. (3)Theimprisonmentreferredtoinclauses(i),(ii)and (iii)ofsub-section(1)andsub-section.(2)shall,inthe absenceofspecialandadequatereasonstothe contrarytoberecordedinthejudgmentoftheCourt, beforatermnotlessthansixmonths. (4)NotwithstandinganythingcontainedintheCodeof CriminalProcedure,1973,alloffencesunderthisAct, excepttheoffencesreferredtoinsub-section(5)shall benon-cognizableandbailable. (5)Theoffencesspecifiedinclause(a)orclause(b)or clause(c)orclause(d)ofsub-section(1)and punishableunderclause(i)ofthatsub-sectionshallbe cognizableandnon-bailable. (6)Apersonshallnotbeprosecutedforanyoffence underthissectionexceptwiththeprevioussanctionof theCommissioner. Explanation.- For the purposes of this section, the term “tax” shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly taken under the provisions of this Act, the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and cess levied under the Goods and Services Tax (Compensation to States) Act. 133.(1) Where any person engaged in connection with the collection of statistics under section or compilation or computerisation thereof or if any. officer of State tax having access to information specified under sub-section (1) of section 150, or if any person engaged Liabilityofofficersand certainotherpersons. Reeusr,fee12YA2017 inconnectionwiththeprovisionofserviceonthe| commonportalortheagentofcommonportal,wilfully disclosesanyinformationorthecontentsofanyreturn furnishedunderthisActorrulesmadethereunder otherwisethaninexecutionofhisdutiesunderthe.said sectionsorforthepurposesofprosecutionforanoffence underthisActorunderanyotherActforthetimebeing inforce,heshallbepunishable withimprisonmentfora termwhichmayextendtosixmonthsorwithfinewhich ‘mayextendtotwentyfivethousandrupees,orwithboth. (2)Anyperson— (a)whoisaGovernmentservantshallnotbeprosecuted foranyoffenceunderthissectionexceptwiththe previoussanctionoftheGovernment; (b)whoisnotaGovernmentservantshallnotbe prosecutedforanyoffenceunderthissectionexceptwith theprevioussanctionoftheCommissioner. 134.Nocourtshalltakecognizanceofanyoffence punishableunderthisActortherulesmade thereunderexceptwiththeprevioussanctionofthe Commissioner,andnocourtinferiortothatofa MagistrateoftheFirstClass,shalltryanysuch offence.\ 135.InanyprosecutionforanoffenceunderthisAct whichrequiresaculpablementalstateonthepartof theaccused,thecourtshallpresumetheexistenceof suchmentalstatebutitshallbeadefenceforthe accusedtoprovethefactthathehadnosuchmental statewithrespecttotheactchargedasanoffencein thatprosecution. Explanation.—Forthepurposesofthissection— (i)theexpression“culpablementalstate”includes intention,motive,knowledgeofafact,andbelief in,orreasontobelieve,afact; (ii)afactissaidtobeprovedonlywhenthecourt believesittoexistbeyondreasonabledoubtandnot merelywhenitsexistenceisestablishedbya preponderanceofprobability. 528(271) Cognizanceofoffences. Presumptionof culpablementalstate. 528(272)Hemetessa,feria123A2017 136.AstatementmadeandsignedbyapersononRelevancyof appearanceinresponsetoanysummonsissuedunderstatementsunder section70duringthecourseofanyinquiryorcertaincircumstances, proceedingsunderthisActshallberelevant,forthe purposeofproving,inanyprosecutionforanoffence underthisAct,thetruthofthefactswhichit contains,— (a)whenthepersonwhomadethestatementis deadorcannotbefound,orisincapableofgiving evidence,oriskeptoutofthewaybytheadverse party,orwhosepresencecannotbeobtainedwithout anamountofdelayorexpensewhich,underthe circumstancesofthecase,thecourtconsiders unreasonable;or (b)when.thepersonwhomadethestatementis examinedasawitnessinthecasebeforethecourtand thecourtisoftheopinionthat,havingregardtothe circumstancesofthecase,thestatementshouldbe admittedinevidenceintheinterestofjustice. 137.(1)WhereanoffencecommittedbyapersonOffencesby underthisActisacompany,everypersonwho,attheCompanies. timetheoffencewascommittedwasinchargeof,and. wasresponsibleto,thecompanyfortheconductof businessofthecompany,aswellasthecompany, shallbedeemedtobeguiltyoftheoffenceandshall beliabletobeproceededagainstandpunished accordingly. (2)Notwithstandinganythingcontainedinsub- section(1),whereanoffenceunderthisActhas beencommittedbyacompanyanditisproved thattheoffencehasbeencommittedwiththe consentorconnivanceof,orisattributabletoany negligence on the part of, any director, manager, secretary or other officer of the company, Such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punishedaccordingly. (3) Where an offence under this Act has been committed by a taxable person being a partnership firm or a Limited Liability Partnership or a Hindu meewat,fete12A2017©528(273) UndividedFamilyoratrust,thepartnerorkarta ormanagingtrusteeshallbedeemedtobeguilty ofthatoffenceandshallbeliabletobeproceeded againstandpunishedaccordinglyandthe provisionsofsub-section(2)shallmutatis mutandisapplytosuchpersons. (4)Nothingcontainedinthissectionshallrenderany suchpersonliabletoanypunishmentprovidedin thisAct,ifheprovesthattheoffencewas committedwithouthisknowledgeorthathehad exercisedallduediligencetopreventthe commissionofsuchoffence. Explanation.—Forthepurposesofthissection,— (i)“company”meansabodycorporateandincludes afirmorotherassociationofindividuals;and (ii)“director”,inrelationtoafirm,meansapartner inthefirm. 138.(1)AnyoffenceunderthisActmay,eitherbeforeCompoundingof oraftertheinstitutionofprosecution,becompoundedoffences. bytheCommissioneronpayment,bytheperson accusedoftheoffence,totheCentralGovernmentor the StateGovernment,asthecasemaybe,ofsuch compoundingamountinsuchmannerasmaybe prescribed: Providedthatnothingcontainedinthissection— shallapplyto~, (a)apersonwhohasbeenallowedtocompoundonce inrespectofanyoftheoffencesspecifiedin clauses(a)to(f)ofsub-section(1)ofsection132 andtheoffencesspecifiedinclause(I)whichare relatabletooffencesspecifiedinclauses(a)to(f) ofthesaidsub-section; (b)apersonwhohasbeenallowedtocompoundonce inrespectofanyoffence,otherthanthoseinclause (a),underthisActorundertheprovisionsofany StateGoodsandServicesTaxActortheCentral GoodsandServicesTaxActortheUnionTerritory GoodsandServicesTaxActortheIntegrated 528(274) AeareUAT,feat12SA2017 Goods and Services Tax Act in respect of supplies of value exceeding one crore rupees; (c) a person who has been accused of committing an offence under this Act which isalso an offence under anyother law for thetime being inforce; (d)apersonwhohasbeenconvictedforanoffence underthisActbyacourt; (e)apersonwhohasbeenaccusedofcommittingan offencespecifiedinclause(g)orclause(j)or clause(k)ofsub-section(1)ofsection132;and (f)anyotherclassofpersonsoroffencesasmaybe prescribed: Providedfurtherthatanycompounding allowedundertheprovisionsofthissectionshall notaffecttheproceedings,ifany,institutedunder anyotherlaw: Providedalsothatcompoundingshallbe allowedonlyaftermakingpaymentoftax,interest andpenaltyinvolvedinsuchoffences. (2)Theamountforcompoundingofoffencesunder thissectionshallbesuchasmaybeprescribed, subjecttotheminimumamountnotbeingless thantenthousandrupeesorfiftypercentofthe taxinvolved,whicheverishigher,andthe maximumamountnotbeinglessthanthirty thousandrupeesoronehundredandfiftypercent. ofthetax,whicheverishigher. (3)Onpaymentofsuchcompoundingamountasmay be determined by the Commissioner, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated. CHAPTERXX TRANSITIONALPROVISIONS 139. (1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as Migrationofexisting taxpayers. 74 of1956 (2) G3) Heewera,feria12FA2017 maybeprescribed,whichunlessreplacedbyafinal certificateofregistrationundersub-section(2),shall beliabletobecancellediftheconditionsso prescribedarenotcompliedwith. Thefinalcertificateofregistrationshallbe grantedinsuchformandmannerandsubjectto suchconditionsasmaybeprescribed. Thecertificateofregistrationissuedtoaperson undersub-section(1)shallbedeemedtohavenot beenissuedifthesaidregistrationiscancelledin pursuanceofanapplicationfiledbysuchperson thathewasnotliabletoregistrationundersection 22orsection24. »(1)registeredperson,otherthan apersonopting topaytaxundersection10,shallbeentitledtotake,in 528(275) Transitional arrangementsfor hiselectroniccreditledger,creditoftheamountofinputtaxcredit. ValueAddedTax,,ifany,carriedforwardinthe returnrelatingtotheperiodendingwiththeday immediatelyprecedingtheappointedday,furnished byhimundertheexistinglawinsuchmannerasmay beprescribed: Providedthattheregisteredpersonshallnotbe allowedtotakecredit inthefollowingcircumstances, namely:— (i)wherethesaidamountofcreditisnotadmissible asinput taxcreditunderthisAct;or _Gi)wherehehasnotfurnishedallthereturns requiredundertheexistinglawfortheperiodof sixmonthsimmediatelyprecedingtheappointed date;or Providedfurtherthatsomuchofthesaid creditasisattributabletoanyclaimrelatedto section3,sub-section(3)ofsection5,section6, section6Aorsub-section(8)ofsection8ofthe CentralSalesTaxAct,1956whichisnot substantiatedinthemanner,andwithintheperiod, prescribedinrule12oftheCentralSalesTax (RegistrationandTurnover)Rules,1957shal]not beeligibletobecreditedtotheelectroniccredit ledger: 528(276) Herewstas,feat12FA2017 Providedalsothatanamountequivalenttothe creditspecifiedinthesecondprovisoshallbe refundedundertheexistinglawwhenthesaid claimsaresubstantiatedinthemannerprescribed inrule12oftheCentralSalesTax(Registration _andTurnover)Rules,1957. (2)Aregisteredperson,otherthanapersonoptingto paytaxundersection10,shallbeentitledtotake, inhiselectroniccreditledger,creditofthe unavailedinputtaxcreditinrespectofcapital goods,notcarriedforwardinareturn,furnished undertheexistinglawbyhim,fortheperiod endingwiththedayimmediatelyprecedingthe appointeddayinsuchmannerasmaybe prescribed: Providedthattheregisteredpersonshallnotbe allowedtotakecreditunlessthesaidcreditwas admissibleasinputtaxcreditundertheexistinglaw andisalsoadmissibleasinputtaxcreditunderthis Act. Explanation.—-Forthepurposesofthissection,the expression“unavailedinputtaxcredit”meanstheamount thatremainsaftersubtractingtheamountofinputtax creditalreadyavailedinrespectofcapitalgoodsbythe taxable person under the existing law from the aggregate amount of input tax credit to which the said person was entitledinrespectofthesaidcapitalgoodsunderthe existinglaw. (3) A registered person, who was not liable to be registered under the existing law or who was engaged in the sale of exempted goods or tax free goods, by whatever name called, or goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State under the existing law but which are liable to tax under this Act or where the person was entitled to the credit of input tax at the time of sale of goods, if any, shall be entitled to take, in his electronic credit ledger, credit of the value added tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject tothefollowingconditionsnamely:— weewearsa,fei12FA2017528(277) (i)suchinputsorgoodsareusedorintendedtobe usedformakingtaxablesuppliesunderthis Act; (ii)thesaidregisteredpersoniseligibleforinputtax creditonsuchinputsunderthisAct; (iii)thesaidregisteredpersonisinpossessionof invoiceorotherprescribeddocuments evidencingpaymentoftaxundertheexisting lawinrespectofsuchinputs;and (iv)suchinvoicesorother prescribeddocuments wereissuednotearlierthantwelvemonths immediatelyprecedingtheappointedday: Providedthatwherearegisteredperson,other thanamanufacturerorasupplierofservices,isnot inpossessionofaninvoiceoranyotherdocuments evidencingpaymentoftaxinrespectofinputs, then,suchregisteredpersonshall,subjecttosuch conditions,limitationsandsafeguardsasmaybe prescribed,includingthatthesaidtaxableperson shallpassonthebenefitofsuchcreditbywayof reducedpricestotherecipient,beallowedtotake creditatsuchrateandinsuchmannerasmaybe prescribed. (4)Aregisteredperson,whowasengagedinthesale oftaxablegoodsaswellasexemptedgoodsortax freegoods,bywhatevernamecalled,underthe existinglawbutwhichareliabletotaxunderthis Act,shallbeentitledtotake,inhiselectronic creditledger,- (a)theamountofcreditofthevalueaddedtax,if any,carriedforwardinareturnfurnished undertheexistinglawbyhiminaccordance withtheprovisionsofsub-section(1);and (b)theamountofcreditofthevalueaddedtax,if any,inrespectofinputsheldinstock.and inputscontainedinsemi-finishedorfinished goodsheldinstockontheappointedday, relatingtosuchexemptedgoodsortaxfree goods,bywhatevernamecalled,inaccordance withtheprovisionsofsub-section(3). 528(278)FeameRweaTa,fete12FA2017 (5)Aregisteredpersonshallbeentitledtotake,inhis electroniccreditledger,creditofvalueaddedtax, ifany,inrespectofinputsreceivedonorafterthe appointeddaybutthetaxinrespectofwhichhas beenpaidbythesupplierundertheexistinglaw, subjecttotheconditionthattheinvoiceorany othertaxpayingdocumentofthesamewas recordedinthebooksofaccountofsuchperson withinaperiodofthirtydaysfromtheappointed day:¢ Providedthattheperiodofthirtydaysmay,on sufficientcausebeingshown, beextendedbythe Commissionerforafurtherperiodnotexceeding thirtydays: Providedfurtherthatthesaidregisteredpersonshall furnishastatement,insuchmannerasmaybeprescribed, inrespectofcreditthathasbeentakenunderthissub- section. (6)Aregisteredperson,whowaseitherpayingtaxat afixedrateorpayingafixedamountinlieuofthe- taxpayableundertheexistinglawshallbeentitled totake,inhiselectroniccreditledger,creditof valueaddedtaxinrespectofinputsheldinstock andinputscontainedinsemi-finishedorfinished goodsheldinstockontheappointeddaysubject tothefollowingconditions,namely:— (i)suchinputs orgoodsareusedorintendedtobe usedformakingtaxablesuppliesunderthisAct; (ii)thesaidregisteredpersonisnotpayingtax undersection10;. (iii)thesaidregisteredpersoniseligibleforinput taxcreditonsuchinputsunderthisAct; (iv)thesaidregisteredpersonisinpossessionof ‘invoiceorotherprescribeddocumentsevidencing paymentoftaxundertheexistinglawinrespectof inputs;and (v)suchinvoicesorotherprescribeddocuments wereissuednotearlierthantwelvemonths immediatelyprecedingtheappointedday. Heewees,feat12FA2017528(279) (7)Theamountofcreditundersub-sections(3), (4)and(6)shallbecalculatedinsuchmanneras maybeprescribed. 141.(1)WhereanyinputsreceivedataplaceofTransitional businesshad‘beendespatchedassuchorprovisionsrelatingto despatchedafterbeingpartiallyprocessedtoajobjobwork. workerforfurtherprocessing,testing,repair, reconditioningoranyotherpurposeinaccordance withtheprovisionsofexistinglawpriortothe appointedday andsuchinputsarereturnedtothe saidplaceonoraftertheappointedday,notax shallbepayableifsuchinputs,aftercompletionof thejobworkorotherwise,arereturnedtothesaid placewithinsixmonthsfromtheappointedday: Providedthattheperiodofsixmonthsmay, on sufficientcausebeingshown,beextendedbythe Commissionerforafurtherperiodnotexceeding twomonths: Providedfurtherthatifsuchinputsarenot returnedwithintheperiodspecifiedinthissub- section,theinputtaxcreditshallbeliabletobe recoveredinaccordancewiththeprovisionsof clause(a)ofsub-section(8)ofsection142. (2)Whereanysemi-finishedgoodshadbeen despatchedfromtheplaceofbusinesstoanyother premisesforcarrying outcertainmanufacturing processesinaccordancewiththeprovisionsof existinglawpriortotheappointeddayandsuch goods(hereafterinthissub-sectionreferredtoas “thesaidgoods”)arereturnedtothe saidplaceon oraftertheappointedday,notaxshallbepayable ifthesaidgoods,afterundergoing.manufacturing processesorotherwise,arereturnedtothesaid placewithinsixmonthsfromtheappointedday: Providedthattheperiodofsixmonthsmay,on sufficientcausebeingshown,beextendedbythe Commissionerforafurtherperiodnotexceeding twomonths: Providedfurtherthatifthesaidgoodsarenot returnedwithinaperiodspecifiedinthissub- section,theinputtaxcreditshallbeliabletobe recoveredinaccordancewiththeprovisionsof clause(a)ofsub-section(8)ofsection142: 528(280) Heeusta,feats12FA2017 Providedalsothatthepersondespatchingthe goodsmay,inaccordancewiththeprovisionsof theexistinglaw,transferthesaidgoodstothe premisesofanyregisteredpersonforthepurpose ofsupplyingtherefromonpaymentoftaxinIndia orwithoutpaymentoftaxforexportswithinthe periodspecifiedinthissub-section. (3)Whereanygoodshadbeendespatchedfromthe placeofbusinesswithoutpaymentoftaxfor carryingouttestsoranyotherprocess,toany otherpremises,whetherregisteredornot,in accordancewiththeprovisionsofexistinglaw priortotheappointeddayandsuchgoods,are returnedtothesaidplaceofbusinessonorafter theappointedday,notaxshallbepayableifthe saidgoods,afterundergoingtestsoranyother process,arereturnedtosuchplacewithinsix -monthsfromtheappointedday: Providedthattheperiodofsixmonthsmay, on sufficientcausebeingshown,beextendedbythe Commissionerforafurtherperiodnotexceeding twomonths: Providedfurtherthatifthesaidgoodsarenot returnedwithintheperiodspecifiedinthissub- section,theinputtaxcreditshallbeliabletobe recoveredinaccordancewiththeprovisionsof clause(a)ofsub-section(8)ofsection142: Providedalsothatthepersondespatching.the goodsmay,inaccordancewiththeprovisionsof theexistinglaw,transferthesaidgoodsfromthe saidotherpremisesonpaymentoftaxinIndiaor withoutpaymentoftaxforexportswithinthe periodspecifiedinthissub-section. (4)Thetaxundersub-sections(1),(2)and(3)shall notbepayable,onlyifthepersondespatchingthe goodsandthejobworkerdeclarethedetailsofthe inputsorgoodsheldinstockbythejobworkeron— behalfofthesaidpersonontheappointeddayin suchformandmannerandwithinsuchtimeas maybeprescribed. Heeusta,fete12Ft2017528(281) 142. (1) Where any goods on which tax, if any, had Miscellaneous been paid under the existing law at the time of sale transitional thereof, not being earlier than six months prior to provisions. _ the appointed day, are returned toany place of business on or after the appointed day, the registered person shall be eligible for refund ofthe tax paid under the existing law where such goods arereturned bya person, other than aregistered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer: Providedthatifthesaidgoodsarereturnedby aregisteredperson,thereturnofsuchgoodsshall bedeemedtobeasupply. (2)(a)Where,inpursuanceofacontractenteredinto priortotheappointedday,thepriceofanygoods isrevisedupwardsonoraftertheappointedday, theregisteredpersonwhohadsoldsuchgoods shallissuetotherecipientasupplementary invoiceordebitnote,containingsuchparticulars asmaybeprescribed,withinthirtydaysofsuch pricerevisionandforthepurposesofthisAct, suchsupplementaryinvoice ordebitnoteshallbe deemedtohavebeenissuedinrespectofan outwardsupplymadeunderthisAct; (b)Where,inpursuanceofacontractenteredinto priortotheappointedday,thepriceofanygoods is revised downwards on or after the appointed day, the registered person who had sold such goods may issue to the recipient a credit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such credit note shall be deemed to have been issued in respect of an outwardsupplymadeunderthisAct: Provided that the registered person shall be allowed to reduce his tax liability on account of issue of the credit note only if the recipient of the credit note has reduced his input tax credit corresponding to suchreductionoftaxliability. 528(282)HemeWeaTa,feat12FA2017 (3)Everyclaimfor‘refundfiledbyanyperson before,onoraftertheappointeddayforrefundof anyamountofinputtaxcredit,tax,interestorany otheramountpaidundertheexistinglaw,shallbe disposedofinaccordancewiththeprovisionsof existinglaw andanyamounteventuallyaccruing tohimshall.berefundedtohimincashin accordancewiththeprovisionsofthesaidlaw: Providedthatwhereanyclaimforrefundofthe amountofinputtaxcreditisfullyorpartially rejected,theamountsorejectedshalllapse: Providedfurtherthatno’refundshallbe allowedofanyamountofinputtaxcreditwhere thebalanceofthesaidamountasontheappointed dayhasbeencarriedforwardunderthisAct. (4)Everyclaimforrefundfiledaftertheappointed dayforrefundofanytaxpaidundertheexisting lawinrespectofthegoodsexportedbeforeor aftertheappointedday,shallbedisposedofin accordancewiththeprovisionsoftheexisting law: Providedthatwhereanyclaimforrefundofinput taxcreditisfullyorpartiallyrejected,theamountso rejectedshalllapse: Providedfurtherthatnorefundshallbeallowedof anyamountofinputtaxcreditwherethebalanceof thesaidamountasontheappointeddayhasbeen carriedforwardunderthisAct. (5)Notwithstandinganythingtothecontrary containedinthisAct,anyamountofinputtax creditreversedpriortotheappointeddayshallnot beadmissibleasinputtaxcreditunderthisAct. (6) (a) every proceeding of appeal, revision, review orreferencerelatingtoaclaimforinputtaxcredit initiated whether before, on or after the appointed dayundertheexistinglawshallbedisposedofin accordance with the provisions of the existing law,andanyamountofcreditfoundtobe admissible to the claimant shall be refunded to — himincashinaccordancewiththeprovisionsof the existing law, and the amount rejected, if any, shall not be admissible as input tax credit under thisAct: meagerustia,feat12FA2017|528(283) Provided that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this Act; (b) every proceeding of appeal, revision, review or reference relating to recovery of input tax credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of the existing law, and if any amount of credit becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (7) (a) Every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, revision, review © or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (b) Every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and any amount found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions of the existing law and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (8)(a) Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the 528(284) magewets,Feri12Yt2017 existinglaw,anyamountoftax,interest,fineor penaltybecomesrecoverablefromtheperson,the sameshall,unlessrecoveredundertheexisting law,berecoveredasanarrearoftaxunderthis Actandtheamountsorecoveredshallnotbe admissibleasinputtaxcreditunderthisAct;. (b)Whereinpursuanceofanassessmentor adjudicationproceedingsinstituted,whether before,onoraftertheappointeddayunderthe existinglaw,anyamountoftax,interest,fineor penaltybecomesrefundabletothetaxableperson, thesameshallberefundedtohimincashunder thesaidlaw,andtheamountrejected,ifany,shall notbeadmissibleasinputtaxcreditunderthis Act. (9)(a)Whereanyreturn,furnishedundertheexisting law,isrevisedaftertheappointeddayandif, pursuanttosuchrevision,anyamountisfoundto berecoverableoranyamountofinputtaxcreditis foundtobeinadmissible,thesameshall,unless recoveredundertheexistinglaw,berecoveredas anarrearoftaxunderthisActandtheamountso recoveredshallnotbeadmissibleasinputtax creditunderthisAct; (b)Whereanyreturn,furnishedundertheexisting law,isrevisedaftertheappointeddaybut withinthetimelimitspecifiedforsuch revisionundertheexistinglawandif,pursuant tosuchrevision,anyamountisfoundtobe refundableorinputtaxcreditisfoundtobe admissibletoanytaxableperson,thesame shallberefundedtohimincashunderthe existinglaw,andtheamountrejected,ifany, shallnotbeadmissibleasinputtaxcredit underthisAct. (10) Save as otherwise provided in this Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act. Heeusta,fet12YA2017528(285) 32of1994 '20of2002 32 of1994 (11) (a) Notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Madhya Pradesh Vat Act, (No. of 2002); (b) Notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; (c) Where tax was paid on any supply, both under the Madhya Pradesh Vat Act, 2002(No. of 2002) and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. (12)Whereanygoodssentonapprovalbasis,not earlierthansixmonthsbeforetheappointedday, arerejectedornotapprovedbythebuyerand returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day: Provided that the said period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: . Provided further that the tax shall be payable by the person returning the goods if such goods are liable to tax under this Act, and are returned after the period specified in this sub-section: Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within the period specified in this sub-section. (13) Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under the Madhya Pradesh 528(286)Reameswssa,feaie12FA2017 Vat,2002(No.20of2002)andhasalsoissuedan invoiceforthesamebeforetheappointedday,no deductionoftaxatsourceundersection51shall bemadebythedeductorunderthesaidsection wherepaymenttothesaidsupplierismadeonor aftertheappointedday. (14)Whereanygoodsorcapitalgoodsbelongingto theprincipalarelyingatthepremisesoftheagent ontheappointedday,theagentshallbeentitledto takecreditofthe taxpaidonsuchgoodsorcapital goodssubjecttofulfilmentofthefollowing conditions: (i)theagentisaregisteredtaxablepersonunderthis Act; (ii)boththeprincipalandtheagentdeclarethe detailsofstockofgoodsorcapitalgoodslying withsuchagentonthedayimmediately precedingtheappointeddayinsuchformand mannerandwithinsuchtimeasmaybe prescribedinthisbehalf; (iii)theinvoicesforsuchgoodsorcapitalgoodshad beenissuednotearlierthantwelvemonths immediatelyprecedingtheappointedday;and (iv)theprincipalhaseitherreversedornotavailed oftheinputtaxcreditinrespectofsuch,- (a)goods;or (b)capitalgoodsor,havingavailedofsuch credit,hasreversedthesaidcredit,tothe extentavailedofbyhim.| CHAPTERXXI MISCELLANEOUS 143. (1) A registered person (hereafter in this section Job work procedure. referred to as the “principal”) may, under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall,— (a) bring back inputs, after completion ofjob work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and Heewera,feat12SA2017528(287) three years, respectively, of their being sent out, to any of his place of business, without payment of tax; (b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, asthecase maybe: Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of, this clause unless the said principal declares the place of business of the job worker as his additional place of business except in acase- (i) where the job worker is registered under section 25; or | (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. (2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. (3) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs weresentout. (4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place 528(288)eagerusa,fetish12YA2017 ofbusinessofthejobworkerinaccordancewith theprovisionsofclause(b)ofsub-section(1) withina periodofthreeyearsoftheirbeingsent out,itshallbedeemedthatsuchcapitalgoodshad beensuppliedbytheprincipaltothejobworker onthedaywhenthesaidcapitalgoodsweresent out. (5)Notwithstandinganythingcontainedin sub- sections(1)and(2),anywasteandscrap generatedduringthejobworkmaybesuppliedby thejobworkerdirectlyfromhisplaceofbusiness onpaymentoftax,ifsuchjobworkeris registered,orbytheprincipal,ifthejobworkeris notregistered. Explanation.-Forthepurposesofjobwork,input includesintermediategoodsarisingfromanytreatmentor processcarriedoutontheinputsbytheprincipalorthe jobworker. 144.Whereanydocument- (i)isproducedbyanypersonunderthisActorany otherlawforthetimebeinginforce;or (ii)hasbeenseizedfromthecustodyorcontrolof anypersonunderthisActoranyotherlawfor thetimebeinginforce;or (iii)hasbeenreceivedfromanyplaceoutsideIndia inthecourseofanyproceedingsunderthisAct oranyotherlawforthetimebeinginforce, andsuchdocumentistenderedbytheprosecutionin evidenceagainsthimoranyotherpersonwhoistried jointlywithhim,thecourtshall-- (a)unlessthecontraryisprovedbysuchperson, presume— (i)thetruthofthecontentsofsuchdocument; Presumptionasto documentsincertain© cases. Heeusta,feats12FA2017 (ii)thatthesignatureandeveryotherpartof suchdocumentwhichpurportstobeinthe handwritingofanyparticularpersonorwhichthe courtmayreasonablyassumetohavebeensigned by,ortobeinthehandwritingof,anyparticular person,isin thatperson’shandwriting,andinthe caseofadocumentexecutedorattested,thatit wasexecutedorattestedbythepersonbywhomit purportstohave beensoexecutedorattested; (b)admitthedocumentinevidencenotwithstanding thatitisnotdulystamped,ifsuchdocumentis otherwiseadmissibleinevidence. 145.(1)Notwithstandinganythingcontainedinany otherlawforthetimebeinginforce,— (a)amicrofilmofadocumentorthereproduction oftheimageorimagesembodiedinsuchmicro film(whetherenlargedornot);or (b)afacsimilecopyofadocument;or (c)astatementcontainedinadocumentand includedinaprinted materialproducedbya- computer,subjecttosuchconditionsasmaybe prescribed;or (d)anyinformationstoredelectronicallyinany deviceormedia,includinganyhardcopies madeofsuchinformation, shallbedeemedtobeadocumentforthepurposesofthis Actandtherulesmadethereunderandshallbeadmissible inanyproceedingsthereunder,withoutfurtherproofor productionoftheoriginal,asevidenceofanycontentsof theoriginalorof anyfactstatedthereinofwhichdirect evidencewouldbeadmissible. (2)InanyproceedingsunderthisActandortherules madethereunder,whereitisdesiredtogivea 528(289) Admissibilityofmicro films,facsimilecopies ofdocumentsand computerprintoutsas documentsandas evidence. 528(290) Feganustaa,fetie12YA2017 statementinevidencebyvirtueofthissection,a certificate,— (a)identifyingthedocumentcontainingthestatement anddescribingthemannerinwhichitwas produced; (b)givingsuchparticularsofanydeviceinvolvedin theproductionofthatdocumentasmaybe appropriatefor thepurposeofshowingthatthe documentwasproducedbyacomputer, shallbeevidenceofanymatterstatedinthecertificate andforthepurposesofthissub-sectionitshallbe sufficientforamattertobestated tothe bestofthe _knowledgeandbeliefofthepersonstatingit. 146.TheGovernmentmay,ontherecommendationsof theCouncil,notifytheCommonGoodsandServices TaxElectronicPortalforfacilitatingregistration, paymentoftax,furnishingofreturns,computationand settlementofintegratedtax,electronicwaybilland forcarryingoutsuchotherfunctionsandforsuch purposesasmaybeprescribed. 147.TheGovernmentmay,ontherecommendationsof theCouncil,notifycertainsuppliesofgoodsas “deemedexports”,wheregoodssupplieddonotleave India,andpaymentforsuchsuppliesisreceivedeither in Indian rupees or in convertible foreign exchange, if suchgoodsaremanufacturedinIndia. 148. The Government may, on the recommendations of the Council, and subject to such conditions and safeguards as may be prescribed, notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons. 149. (1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act. CommonPortal. DeemedExports. Specialprocedurefor certainprocesses. Goodsandservicestax compliancerating. HeeUsa,fetth12YA2017528(291) 43 of1961. 2of1934. 36of2003. 16of1908. 18of2013. 59of1988. (2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed. (3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed. 150. (1)Anyperson,being— (a)ataxable person;or (b) a local authority or other public body or association; or (c) any authority of the State Government responsible for the collection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for the collection of excise duty or customs duty; or (d) an income tax authority appointed under the provisions of the Income-tax Act, 1961; or (e) a banking company within the meaning of clause (a) of section 45A of the Reserve Bank of India Act, 1934; or (f) a State Electricity Board or an electricity distribution or transmission licensee under the Electricity Act, 2003, or any other entity entrusted with such functions by the Central Government or the State Government; or (g) the Registrar or Sub-Registrar appointed under section of the Registration Act, 1908; or (h) a Registrar within the meaning of the Companies Act, 2013; or (i) the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988;or (j) the Collector referred to in clause (c) of section of the Right to Fair Compensation and Obligationtofurnish informationreturn. 528(292) HeeUTA,feria12YA2017 y 30of2013. 42of1956. 22of1996. 2of1934, 18of2013. Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or (k) the recognised stock exchange referred to in clause (f) of section of the Securities Contracts (Regulation)Act,1956;or (1) a depository referred to in clause (e) of sub- section (1) of section of the Depositories Act, 1996;or (m) an officer of the Reserve Bank of India as constituted under section of the Reserve Bank of India Act, 1934; or (n) the Goods and Services Tax Network, a company registered under the Companies Act, 2013; or (0) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25; or (p) any other person as may be specified, on the recommendations of the Council, by the Government, who is responsible for maintaining record of registration or statement of accounts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of - goods or property or right or interest in a property under any law for the time being in force, shall furnish an information return of the same in respect of such periods, within such time, in such form and manner and to such authority or agency as may be prescribed. (2) Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period of thirty days from the date of Heerusa,feat12FA2017 suchintimationorwithinsuchfurtherperiod which,onanapplicationmadeinthisbehalf,the saidauthoritymayallowandifthedefectisnot rectifiedwithinthesaidperiodofthirtydaysor, thefurtherperiodsoallowed,then, notwithstandinganythingcontainedinanyother provisionsofthisAct,suchinformationreturn shallbetreatedasnotfurnishedandtheprovisions ofthisActshallapply. (3)Whereapersonwhoisrequiredtofurnish informationreturnhasnotfurnishedthesame withinthetimespecifiedinsub-section(1)or sub- section(2),thesaidauthoritymayserveuponhim anoticerequiringfurnishingofsuchinformation returnwithinaperiodnotexceedingninetydays fromthedateofserviceofthenoticeandsuch personshallfurnishtheinformationreturn. 151.(1)TheCommissionermay,ifheconsidersthatit isnecessarysotodo,bynotification,directthat statisticsmaybecollectedrelatingtoanymatterdealt withbyorinconnectionwiththisAct. (2)Uponsuchnotificationbeingissued,the Commissioner,oranypersonauthorisedbyhimin thisbehalf,maycallupontheconcernedpersons tofurnishsuchinformationorreturns,insuch formandmannerasmaybeprescribed,relatingto anymatterinrespectofwhichstatisticsistobe collected. 152.(1)Noinformationofanyindividualreturnorpart thereofwithrespecttoanymattergivenforthe purposesofsection150orsection151shall,without thepreviousconsentinwritingoftheconcerned personorhisauthorisedrepresentative,bepublished insuchmannersoastoenablesuchparticularstobe identifiedasreferringtoaparticularpersonand no suchinformationshallbeusedforthepurposeofany proceedingsunderthisAct. (2)ExceptforthepurposesofprosecutionunderthisAct oranyotherActforthetimebeinginforce,noperson whoisnotengagedinthecollectionofstatisticsunder thisActorcompilationorcomputerisationthereoffor 528(293) Power.tocollect Statistics. Barondisclosureof information. 528(294) ‘Sof1860. Heewaa,feats12FA2017 thepurposesofthisAct,shallbepermittedtoseeor haveaccesstoanyinformationoranyindividual returnreferredtoinsection151. (3)Nothinginthissectionshallapplytothe publicationofanyinformationrelatingtoaclass oftaxablepersonsorclassoftransactions,ifinthe opinionoftheCommissioner,itisdesirableinthe publicinteresttopublishsuchinformation. 153.AnyofficernotbelowtherankofAssistant -Commissionermay,havingregardtothenatureand complexityofthecaseandtheinterestofrevenue, takeassistanceofanyexpertatanystageofscrutiny, inquiry,investigationoranyotherproceedingsbefore him. 154,TheCommissioneroranofficerauthorisedbyhim maytakesamplesofgoodsfromthepossessionofany taxableperson,whereheconsidersitnecessary,and provideareceiptforanysamplessotaken. 155.Whereanypersonclaimsthatheiseligiblefor inputtaxcreditunderthisAct,theburdenofproving suchclaimshalllieonsuchperson. 156.AllpersonsdischargingfunctionsunderthisAct shallbedeemedtobepublicservantswithinthe meaningofsection21oftheIndianPenalCode. 157.(1)Nosuit,prosecutionorotherlegalproceedings shalllieagainstthePresident,StatePresident, Members,officersorotheremployeesofthe AppellateTribunaloranyotherpersonauthorisedby thesaidAppellateTribunalforanythingwhichisin goodfaithdoneorintendedtobedoneunderthisAct ortherulesmadethereunder. (2)Nosuit,prosecutionorotherlegalproceedings shalllieagainstanyofficerappointedor authorised under this Act for anything which is doneorintendedtobedoneingoodfaithunder thisActortherulesmadethereunder. 158.(1)Allparticularscontainedinanystatement made,returnfurnishedoraccountsordocuments producedinaccordancewiththisAct,orinanyrecord Takingassistancefrom anexpert. Powertotakesamples. Burdenofproof. Personsdeemedtobe publicservants. Protectionofaction takenunderthisAct. Disclosureof informationbyapublic: servant. 1of1872. 45of1860. 49of1988. HeeUAT,fete12FA2017 ofevidencegiveninthecourseofanyproceedings underthisAct(otherthanproceedingsbeforea criminalcourt),orinanyrecordofanyproceedings underthisActshall,saveasprovidedinsub-section (3),notbedisclosed. (2)NotwithstandinganythingcontainedintheIndian EvidenceAct,1872,nocourtshall,saveas otherwiseprovidedinsub-section(3),requireany officerappointedorauthorisedunderthisActto producebeforeitortogiveevidencebeforeitin respectofparticularsreferredtoinsub-section (1). (3)Nothingcontainedinthissectionshallapplyto thedisclosureof,— (a)anyparticularsinrespectofanystatement, return,accounts,documents,evidence,affidavitor deposition,forthepurposeof anyprosecution undertheIndianPenalCodeorthePreventionof CorruptionAct,1988,oranyotherlawforthetime beinginforce;or (b)anyparticularstotheCentralGovernmentor theStateGovernmentortoanypersonactinginthe implementationofthisAct,forthepurposesof carryingouttheobjectsofthisAct;or (c)anyparticularswhensuchdisclosureis occasionedbythelawfulexerciseunderthisActof anyprocessfortheserviceofanynoticeor recoveryofanydemand;or (d)anyparticularstoacivilcourtinanysuitor proceedings,towhichtheGovernmentorany authorityunderthisActisaparty,whichrelatesto anymatterarisingoutof anyproceedingsunder thisActorunderanyotherlawforthetimebeing inforceauthorisinganysuchauthoritytoexercise anypowersthereunder;or e (e) any particulars to any officer appointed for the purposeofauditoftaxreceiptsorrefundsofthe taximposedbythisAct;or (f)anyparticularswheresuchparticularsare relevantforthepurposesofanyinquiryintothe 528(295) 528(296) Heeusa,feat12FA2017 conductof anyofficerappointedorauthorised underthisAct,toanypersonorpersonsappointed asaninquiryofficerunderanylawforthetime beingin force;or (g)anysuchparticularstoanofficeroftheCentral GovernmentorofanyStateGovernment,asmay benecessaryforthepurposeofenablingthat Governmenttolevyorrealiseanytaxor duty;or (h)anyparticularswhensuchdisclosureis occasionedbythelawfulexercisebyapublic servantoranyotherstatutoryauthority,-ofhisorits powersunderanylawforthetimebeinginforce; or (i)anyparticularsrelevanttoanyinquiryintoa chargeofmisconductinconnectionwithany proceedingsunderthisActagainstapractising advocate,ataxpractitioner,apractisingcost accountant,apractisingcharteredaccountant,a practisingcompanysecretarytotheauthority empoweredtotakedisciplinaryactionagainstthe memberspractisingtheprofessionof alegal practitioner,acostaccountant,achartered accountantoracompanysecretary,asthecasemay be;or (j)anyparticularstoanyagencyappointedforthe purposesofdataentryonany automatedsystemor forthepurposeofoperating,upgradingor maintaininganyautomatedsystemwheresuch agencyiscontractuallyboundnottouseordisclose suchparticularsexceptfortheaforesaidpurposes; or (k)anysuchparticularstoanofficerofthe Governmentasmaybenecessaryforthepurposes of anyotherlawforthetimebeinginforce;and (1)anyinformationrelatingtoanyclassoftaxable personsorclassoftransactionsforpublication,if, intheopinionoftheCommissioner,itisdesirable inthepublicinterest,topublishsuchinformation. ReeUsa,feria12FA2017 159.(1)IftheCommissioner,oranyotherofficer authorised by him in this behalf, is of the opinion that itisnecessaryorexpedientinthepublicinterestto publishthenameofanypersonandanyother particularsrelatingtoanyproceedingsorprosecution underthisActinrespectofsuchperson,itmaycause tobepublishedsuchnameandparticularsinsuch mannerasitthinksfit. (2)Nopublicationunderthissectionshallbemadein relationtoanypenaltyimposedunderthisAct untilthetimeforpresentinganappealtothe AppellateAuthorityundersection107hasexpired withoutanappealhavingbeenpresentedorthe appeal,ifpresented,hasbeendisposedof. Explanation.—Inthecaseoffirm,companyorother associationofpersons,thenamesofthepartnersofthe firm,directors,managingagents,secretariesand treasurersormanagers ofthecompany,orthemembersof theassociation,asthecasemaybe,mayalsobepublished if,intheopinionoftheCommissioner,oranyother officerauthorisedbyhiminthisbehalf,circumstancesof thecasejustifyit. 160.(1)Noassessment,re-assessment,adjudication, review,revision,appeal,rectification,notice, summonsorotherproceedingsdone,accepted,made, issued,initiated,orpurportedtohavebeendone, accepted,made,issued,initiatedinpursuanceofany oftheprovisionsofthisActshallbeinvalidor deemed to be invalid merely by reason of any mistake, defect or omission therein, if such assessment, re- assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are in substance and effect in conformity with or according to the intents, purposes and requirements of thisActoranyexistinglaw. (2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question at or in the earlier proceedings commenced, continued or finalised pursuant to such notice, order or communication. Publicationof informationinrespect ofpersonsincertain cases. Assessment proceedings,etc.notto beinvalidoncertain grounds. 528(297) 528(298)Hemmeusa,fei12FA2017 161.Withoutprejudicetotheprovisionsofsection160,Rectificationoferrors- andnotwithstandinganythingcontainedinanyotherapparentonthefaceof provisionsofthisAct,anyauthority,whohaspassedrecord. orissuedanydecision ororderornoticeorcertificate oranyotherdocument,mayrectifyanyerrorwhichis apparentonthe faceofrecordinsuchdecisionor orderornoticeorcertificateoranyotherdocument, eitheronitsownmotionorwheresucherroris broughttoitsnoticebyanyofficerappointedunder thisActoranofficerappointedundertheCentral GoodsandServicesTaxActorbytheaffectedperson withinaperiodofthreemonthsfromthedateofissue ofsuchdecisionororderornoticeorcertificateorany otherdocument,asthecasemaybe: Providedthatnosuchrectificationshallbedoneaftera periodofsixmonthsfromthedateofissueofsuch decisionororderornoticeorcertificateoranyother document:.. Providedfurtherthatthesaidperiodofsixmonths shallnotapplyinsuchcaseswheretherectificationis purelyinthenatureofcorrectionofaclericalor arithmeticalerror,arisingfromanyaccidentalslipor omission: Providedalsothatwheresuchrectificationadversely affectsanyperson,theprinciplesofnaturaljusticeshall befollowedbytheauthoritycarryingout.such rectification. 162.Saveasprovidedinsections117and118,nocivilBaronjurisdictionof courtshallhavejurisdictiontodealwithordecideanycivilcourts. questionarisingfromorrelating toanythingdoneor purportedtobedoneunderthisAct. 163.Whereveracopyofanyorderordocumentistobe_Levyoffee. providedtoanypersononanapplicationmadebyhim forthatpurpose,thereshallbepaidsuchfeeasmay beprescribed. 164.(1)TheGovernmentmay,onthePowerofGovernment recommendationsoftheCouncil,bynotification,tomakerules. makerulesforcarryingouttheprovisionsofthisAct. Heqgenustaa,feria12FA2017 (2)Withoutprejudicetothe generalityofthe provisionsofsub-section(1),theGovernment maymakerulesforalloranyofthematterswhich bythisActarerequiredtobe,ormaybe, prescribedorinrespectofwhichprovisionsareto beormaybemadebyrules. (3)The powertomakerulesconferredbythissection shallincludethepowertogiveretrospectiveeffect totherulesoranyofthemfromadatenotearlier thanthedateonwhichtheprovisionsofthisAct comeintoforce. (4)Anyrulesmadeundersub-section(1)orsub- section(2)mayprovidethatacontravention thereofshallbeliabletoapenaltynotexceeding tenthousandrupees.
165.TheGovernmentmay, bynotification,make
regulationsconsistentwiththisActandtherulesmade thereundertocarryouttheprovisionsofthisAct. 166.EveryrulemadebytheGovernment,every regulationmadebytheGovernmentandevery notificationissuedbytheGovernmentunderthisAct, shallbelaid,assoonasmaybeafteritismadeor issued,beforetheStateLegislature,whileitisin session, foratotalperiodofthirtydayswhichmaybe comprisedinonesession orintwoormoresuccessive sessions,andif,beforetheexpiryofthesession immediatelyfollowingthesessionorthesuccessive sessionsaforesaid,theStateLegislatureagreesin makinganymodificationintheruleorregulationorin thenotification,asthecasemaybe,ortheState Legislatureagreesthattheruleorregulationor.the notificationshouldnotbemade,theruleorregulation ornotification,asthecasemaybe,shallthereafter haveeffectonlyinsuchmodifiedformorbeof no effect,asthecasemaybe;so,however,thatanysuch modificationorannulmentshallbewithoutprejudice tothevalidityofanythingpreviouslydoneunderthat ruleorregulationornotification,asthecasemaybe. 167.TheCommissionermay,bynotification,direct thatsubjecttosuchconditions,ifany,asmaybe specifiedinthenotification,anypowerexercisableby 528(299) Powertomake regulations. Layingofrules, regulationsand notifications. Delegationofpowers.
528(300)AweUIA,feat12YA2017 any authority or officer under this Act may be exercisable also by another authority or officer as may be specified in such notification. 168. The Commissioner may, if he considers it Power to issue necessary or expedient so to do for the purpose of instructions or uniformity in the implementation of this Act, issue directions. such orders, instructions ordirections tothe State tax officers as itmay deem fit, and thereupon all such officers and all other persons employed in the implementation ofthis Act shall observe and follow such orders, instructions ordirections. 169. (1) Any decision, order, summons, notice or other Service of notice in communication under this Act or the rules made certain circumstances. thereundershallbeservedbyany oneofthefollowing methods,namely:-- (a)bygivingortenderingitdirectlyorbya messengerincludingacouriertotheaddresseeorthe taxablepersonortohismanagerorauthorised representativeoranadvocateorataxpractitioner holdingauthoritytoappearintheproceedingson behalfofthetaxablepersonortoapersonregularly employedbyhiminconnectionwiththebusiness,orto anyadultmemberoffamilyresidingwiththetaxable person;or (b)byregisteredpost orspeedpostorcourierwith acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at his lastknownplaceofbusinessorresidence;or (c) by sending a communication to his e-mail address provided at the time of registration or as amended from time to time; or (d) by making it available on the common portal; or (e) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or
ReeUsa,feta12FA2017 (f)ifnoneofthemodesaforesaidispracticable,by affixingitinsomeconspicuousplaceathislastknown placeofbusinessorresidenceandifsuchmodeisnot practicableforanyreason,thenbyaffixingacopy thereofonthenoticeboardoftheofficeofthe concernedofficerorauthoritywhoorwhichpassed suchdecisionor orderorissuedsuchsummonsor notice. (2)Everydecision,order,summons,noticeorany communicationshallbedeemedtohave been servedonthedateonwhichitistenderedor publishedoracopythereofisaffixedinthe mannerprovidedinsub-section(1). (3)Whensuchdecision,order,summons,noticeor anycommunicationissentbyregisteredpostor speedpost,itshallbedeemedtohave been receivedbytheaddresseeattheexpiryofthe periodnormallytakenbysuchpostintransit unlessthecontraryisproved. 170.Theamountoftax,interest,penalty,fineorany othersumpayable,andtheamountofrefundorany othersumdue,undertheprovisionsofthisActshall beroundedoff*tothenearestrupeeand,forthis purpose,wheresuchamountcontainsapartofarupee consistingofpaise,then,ifsuchpartisfiftypaiseor more,itshallbeincreasedtoonerupeeandifsuch partislessthanfiftypaiseitshallbeignored. 171.(1)Anyreductioninrateoftaxonanysupplyof goodsorservicesorthebenefitofinputtaxcredit shallbepassedontotherecipientbywayof commensuratereductioninprices. (2)TheCentralGovernmentmay,on recommendationsoftheCouncil,bynotification, constituteanAuthority,orempoweranexisting Authorityconstitutedunderanylawforthetime beinginforce,toexaminewhetherinputtax -ereditsavailedbyanyregisteredpersonorthe reductioninthetaxratehaveactuallyresultedina commensuratereductioninthepriceofthegoods orservicesorbothsuppliedbyhim. 528(301) Roundingoffoftaxetc. Anti-profiteering measure.
528(302)HeeUsa,fei12FA2017 (3)TheAuthorityreferredtoinsub-section(2)shall exercisesuchpowersanddischargesuch functionsasmaybeprescribed. 172.(1)Ifanydifficultyarisesingivingeffecttoany provisionsofthisAct,theGovernment.may,onthe recommendationsoftheCouncil,byageneralor a specialorderpublishedintheOfficialGazette,make suchprovisionsnotinconsistentwiththeprovisionsof thisActortherulesorregulationsmadethereunder, asmaybenecessaryorexpedientforthepurposeof removingthesaiddifficulty: Providedthatnosuchordershallbemadeafterthe expiryofaperiodofthreeyearsfromthedateof commencementofthisAct. (2)Everyordermadeunderthissectionshallbelaid, assoonasmaybe,afteritismade,beforethe StateLegislature. MPAct173.SaveasotherwiseprovidedinthisAct,onand No.20offromthedateofcommencementofwholeoranypart 2002ofthisAct,exceptfortheentriesofthegoodsin ScheduleIandScheduleIIoftheMadhyaPradesh VatAct,2002(No.20of2002)relatingtothegoods specifiedunderentry54oftheStateListinthe SeventhScheduletotheConstitutionofIndiaand provisionsrelatingtosuchgoodsinthesaidAct,all otherentriesintheScheduleIandScheduleI]andthe provisionsrelatingtoothergoodsintheMadhya PradeshVatAct,2002(No.20of2002)shallstand omitted. 174.(1)SaveasotherwiseprovidedinthisAct,on andfromthedateofcommencementofwholeorany partofthisAct, (i)theMadhyaPradeshSthaniyaKshetraMeMal KePraveshParKarAdhiniyam,1976(ActNo. 52of1976) (ii)theMadhyaPradeshVilasita,Manoranjan, AmodEvamVigyapanKarAdhiniyam,2011 (ActNo.11of2011) Removalofdifficulties. Amendmentofcertain Acts Repealandsaving. (hereafterreferredtoastherepealedActs)areherebyrepealed.
2) (3) Reggeusa,fede12YA2017528(303) TherepealofthesaidActsandtheamendmentoftheActsspecifiedinsection 173(hereafterreferredtoas“suchamendment”or“amendedAct”,asthecase maybe)totheextentmentionedinsub-section(1)orsection173shallnot— (a)reviveanythingnotinforceorexistingatthetimeofsuchamendment orrepeal;or (b)affectthepreviousoperationoftheamendedActsor repealedActs andordersoranythingdulydoneorsufferedthereunder;or (c)affectanyright,privilege,obligation,orliabilityacquired,accruedor incurredundertheamendedActsorrepealedActsor ordersunder suchrepealedActs: Providedthatanytaxexemptiongrantedthroughanotification undertheamendedActorrepealedActsshallnotcontinueas privilege;or (d) affect any tax, surcharge, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Act or repealed Acts; or (e) affect any investigation, inquiry, assessment proceedings and any otherlegalproceedingsorrecoveryofarrearsorremedyinrespectof anysuchtax,surcharge,penalty,fine,interest,right,privilege, obligation,liability,forfeitureorpunishment,asaforesaid,and any suchinvestigation,inquiry,assessmentproceedingsandotherlegal proceedingsorrecoveryofarrearsorremedymaybeinstituted, continuedorenforced,andanysuchtax,surcharge,penalty,fine, interest,forfeitureorpunishmentmaybeleviedorimposedasifthese Actshadnotbeensoamendedorrepealed; (f)affectanyproceedingsincludingthatrelatingtoanappeal,revision, revieworreference,institutedbefore,onoraftertheappointedday underthesaidamendedActorrepealedActsortherulesmade thereunderandsuchproceedingsshallbecontinuedunderthesaid amendedActsorrepealedActsasifthisActhadnotcomeintoforce andthesaidActshadnotbeenamendedorrepealed. Thementionoftheparticularmattersreferredtoinsection173andsub- section(1)shallnotbeheldtoprejudiceoraffectthegeneralapplicationof theMadhyaPradeshGeneral ClausesAct,1957(No.3of1958)withregardto theeffectofrepeal.
528(304)Hemeusta,fers12YA2017 SCHEDULEI [Seesection7] ACTIVITIESTOBETREATEDASSUPPLYEVENIFMADE WITHOUTCONSIDERATION 1.Permanenttransferordisposalofbusinessassetswhereinput taxcredithasbeenavailedonsuchassets. 2.Supplyofgoodsorservicesorbothbetweenrelatedpersonsor betweendistinctpersonsasspecifiedinsection25,whenmadein thecourseorfurtheranceofbusiness: Providedthatgiftsnotexceedingfiftythousandrupeesin valueinafinancialyearbyanemployertoanemployeeshallnot betreatedassupplyofgoodsorservicesorboth. 3.Supplyofgoods— (a)byaprincipaltohisagentwheretheagentundertakestosupply suchgoodsonbehalfoftheprincipal;or (b)byanagenttohisprincipalwheretheagent undertakesto_ receivesuchgoodsonbehalfoftheprincipal. 4.Importofservicesbyataxablepersonfromarelatedpersonor fromanyofhisotherestablishmentsoutsideIndia,inthecourseor furtheranceofbusiness. SCHEDULEII. [Seesection7] ACTIVITIESTOBETREATEDASSUPPLYOFGOODSOR SUPPLY OFSERVICES 1.Transfer (a)anytransferofthetitleingoodsisasupplyofgoods; (b)anytransferofrightingoodsorofundividedsharein goodswithoutthetransferoftitlethereof,isasupplyof services; (c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods.
Herewstaa,fetis12FA2017528(305) 2.LandandBuilding (a)anylease,tenancy,easement,licencetooccupylandisa supplyofservices; (b)anyleaseorlettingoutofthebuildingincludinga commercial,industrialorresidentialcomplexforbusinessor commerce,eitherwhollyorpartly,isasupplyofservices. 3.Treatmentorprocess Anytreatmentorprocesswhichisappliedtoanotherperson’s goodsisasupplyofservices. 4.Transfer.ofbusinessassets (a)wheregoodsformingpartoftheassetsofabusinessare transferredordisposedofbyorunderthedirectionsofthe personcarryingonthebusinesssoasnolongertoformpart ofthoseassets,whetherornotforaconsideration,such transferordisposalisasupplyofgoodsbytheperson; (b)where,byorunderthedirectionofapersoncarryingona business,goodsheldorusedforthepurposesofthebusiness areputtoanyprivateuseorareused,ormadeavailableto anypersonforuse,foranypurposeotherthanapurposeof thebusiness,whetherornotforaconsideration,theusageor makingavailableofsuchgoodsisasupplyofservices; (c)whereanypersonceasestobeataxableperson,anygoods formingpartoftheassetsof anybusinesscarriedonbyhim shallbedeemedtobesuppliedbyhiminthecourseor furtheranceofhisbusinessimmediatelybeforeheceasesto beataxableperson,unless— (i)thebusinessistransferredasagoingconcernto anotherperson;or (ii)thebusinessiscarriedonbyapersonalrepresentative whoisdeemedtobeataxableperson. 5.Supplyofservices Thefollowingshallbetreatedassupplyofservice,namely:- (a)rentingofimmovableproperty; (b)constructionofacomplex,building,civilstructureora part thereof,includingacomplexorbuildingintendedfor. saletoabuyer,whollyorpartly,exceptwheretheentire considerationhasbeenreceivedafterissuanceof completioncertificate,whererequired,bythecompetent
528(306) Heews,fete12FA2017
20of1972 authority or after its first occupation, whichever is earlier. Explanation.—Forthepurposesofthisclause— (1) the expression "competent authority" means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:— (i) an architect registered with the Council of Architecture constitutedundertheArchitectsAct,1972;or _(ii)acharteredengineerregisteredwiththeInstitutiono Engineers(India);or: (iii)alicensedsurveyoroftherespectivelocalbodyofthecity ortownorvillageordevelopmentorplanningauthority; (2)theexpression"construction"includesadditions,alterations, replacementsorremodelingofanyexistingcivilstructure; (c)temporarytransferorpermittingtheuseorenjoymentofany intellectualpropertyright;: (d)development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software; (e)agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and (f) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. 6.Compositesupply The following composite supplies shall be treated as a supply of services, namely:— (a) works contract as defined in clause (119) of section 2; and (b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. 7. Supply of Goods The following shall be treated as supply of goods, namely:-- Supply of goods by any unincorporated association or body of
Hemewera,fette12YA2017 persons to a member thereof for cash, deferred payment or other valuable consideration. SCHEDULEIII [Seesection7] ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 1, Services by an employee to the employer in the course of or in relation to his employment. 2. Services by any court or Tribunal established under any law for the time being in force. 3.(a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities; (b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause. 4, Services of funeral, burial, crematorium or mortuary including transportation of the deceased. 5. Sale of land and, subject to clause (b) of paragraph of Schedule I], sale of building. 6.Actionableclaims,otherthanlottery,bettingandgambling. Explanation.—Forthepurposesofparagraph2,theterm“court” includesDistrictCourt,HighCourtandSupremeCourt. 528(307)
Preah,WrensARTceCaSa,TeeSTOHTShalaQUT,ATTAAlaacetwepteI—2017.