Chapter XI REFUNDS

----- supplyasiieterminedintetms oftheptovisionsofthis section. 12, (l) Thehabflitytopaytaxongoodsshallanseattheumeof (2) 'lhetimeofsupplyofgoodsslmllbetheeadierofthe foflowiii'gdateanamelyv (a)thedateOfissueofinvoieebythesuppIierorthelast 'dateonwhidiheisrequired,undersection3i,to issuetheinvoicewithrespecttothesupply,or ,(b)thedateonwhiehtheapplianceivesthepayment ~withrespecttothesupply: Providedthatwherethesuppheroftaxablegoodsreoeivesan amountuptoonethousandrupeesmexcessoftheamomindm in thetaxinvoiee, the time ofsupplyto theextentofsuchests amount shall, at the option of the said supplier, bethedate ofissueof inVoiceinrespeetofsuchexcess"amount., Explanation 1. — For the purposes of clauses (a) aiid (b). ‘snpply” shallbedeemedtohavebeenmadetotheextentitiscoveredbythe invoice or,asthecasemaybe, the payment. Explanation 2.~ For the purposes of clause (b), “the date on which the supplier receives the payment” shall be the date on which the paymentisenteredinhisbooksofaccount orthedateonwhichthe paymentiscreditedtohisbankaccounhwhicheveriseaflier. (3)Incaseofmpphesmrespectofwmchtaxupaidorhable tobepaidonrevetsechatgebwathettmeofmpply shaflbetheearhestofthefojlomngdatesmmdr— (a)thedateofthereceiptofgoods.or (b)thedateofpaymentasisentezedinthebooksof accountoftherecipientorthedateonwhichthe paymehtisdebitedinhisbankaceount,whichever ‘isearlier;or. ,(c)thedateimmediatelyfoliowingthirtydaysfi'om thedateofissueofinvoiceoranyotherdocument. bywhatevernamecalled,inlieuthereofbythe when Providedthatthit'isnotpossibletodeterminethetimeof supphrunderdausetahdause(b)orclause(c),thetirneofsupply shallbethedateofentrymthebooksofacconntofthereupientof supply 'I‘imeofsuppiyofgoods.

(4) Incaseofsiipplyofvnndlusbyaqplhthefimeof supplyshallbe— . , (a) the dateofisundechaifthesupplyis identifiable at that pain; a _(b) "the date ormamm another (5) (6) l3.(1) (2) cases. Whereitisnotpofiblemdmtbtineofupply under the. provisions of subfsedilll (2M (3) or sub—section (4), thetimeoquiyjal— (a) inacasewhereapefiodicdmhsbbefild .bethedateonwhichsuchmisbheMtr (b) inanyothercasebethedauondlidifllemis paid.‘ 'Dietimeofsupplyto.theextentitreh;smaaddiin mthevalueofmpplybywayofmbfieor penalty for delayed payment of anyconsiderdim shall bethedateonwhichthesupplierreeeivesadudmn invalue; Theliabilitytopaytaxon servicesslnllaxiaeatthetime ofsupplygasdeterminedintermsofthepewiionsof this section. The time ofsiipply ofservices Shallbetheeadbtd'flle following dates, namely:- (a) the date ofi's'siieOf'invoicebythesupplieLKthe invoioeisissuedwithintheperiodprescribednndet sub-seCti'on (2)"of section 31.,or the date of reoe'gt of payment; whichever is earlier; or (b) thedateofprofisionofserviceiftheinvoiceisnot issued within the period prescribed under sub- section(2)ofsection orthedateofreceiptof payment, wineheverisearhermr (c) the date on whichtherecipientshowsthereceiptof servicesinhfsbooksofaccburmmaasewherethe provisions of clause (a) orclause (b)donotappiy: Provided that where the supplier of taxable service receives an amount upto one thousand rupees in excess of the amount indicated inthetaxinvoiee,dietimeofsupplytotheextentofsufliemas amountshalhatflieoptionofthesaidsupplimbefliedateofiasue of invoice relating to such excess amount. Explanation :- For the purposes of clauses (a) and (b)- §w ‘thesupplyshallbed‘eemedtohivebeenmidemflle extentitiscovfiedbflheinvoiceormsflteaéemybe, thepayment; ‘ ‘ ' Trmeofsuyplyof

(ii) “the date , of receipt of payment” shah :he the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier. . (3) In case ofsupplies in respect ofwhich tax is paid othable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:— a, A (a) the date ofpayment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or (b) the date immediately following sixty days from the date , of issue of invoice or any other document. by whatever name called,in lien thereof by the supplier: mmmmmaafimmmmsm of supply under clause-(a) ordause (b), the time ofsupplyshall be the dateofentryinthebooksofawauntoftheredpimofnpply: Provided further .‘that' in case of supply by assodated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier. (4) In case of supply of Vouchers, by a supplier, the tiine of supply shall bg— I . . - (a) the date of issue ofvoucher, if the supply is identifiable at that point; or (b) thedateoftedemption ofvoucher, in allothercases; (5) Whereitisnotpossibletodeterminethetimeofsupplyof services in the manner speeifiedin sub-section (2), subsection (3) or sub-section (4). the timeof supply shall— (a)' inacasewhereaperiodicalreturnhastobefiMbethe , date onwhich suchtemmistobe-filedior (b) inanyothermsebethedateonwhichthetaxispaid. (6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplies receives such addition in’value.‘ l4. Notwithstanding anything contained in section orsection 13, the timeofsupplygw‘here thereisachangein therateoftax in respect of goods or services or both, shall be determined in the following manner. namelyz- - (a) incasethegoodsorservicesorbothhavebeensupplied beforethechangeinrate oftan— . ' Changeinnteoftu inmspectofsupplyof goodsorseryicea.

(i) wheretheinvoice for the samehasbeenissued and «thepaymentisalso receivedatterthe changein rate often the time of supply shall b‘e‘the date of receipt of payment or the date ’of issue of invoice, whicheveriseadierwr (ii) where the invoice has been issued prior to the dnngeinrateoftaxbutpaymentisreceivedafter thednngeinrateoftanthetimeofsupplyshallbe the die ofissue of invoice; or (iii) vduethepaymenthasbeenreceivedbeforethe mmrateoftagbuttheinvoiceforthesame isismedafierthechangeinrateoftanthetimeof suwlyshallbethedateofreceiptofpayment; (b) inasethegobdsorservicesorbothhavebeensupplied d'uthediangeinrateoftan— , (i) wherethepaymentisreoeivedafterthediangein rateoftaxbuttheinvoicehasbeenissuedpriorto thednngeinrateoftaxthetimedsupplystnllbe “thedded'teoe'qtofpaymeImG ' 5.x. (wwwinvoieehsbeenismedmdpaymentis - receivedbeixethedmgefinmtedmfietime ofsupplyshallbethedateofreceiptofpaymetfior _ m.t-dateofissueofinvoicewhidieveriseuhe'nor (iii) where the invoicehasbeenissnedafterthechange inrateoftaxbutthepaymentisxeoeivedbeforeflie changemrateoftaxthetimeofsupplyshall‘beflie date of issue of invoice: ' Provided that the date of receipt of payment shall be the date of credit in the bank account if such crediti’in the bank'éaccount is - after four working days from the date éfchange in the rate oftax. Explanation:- For the purposes fit" this section; “the due of receipt of payment’shafl be the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to tits bank accounts whichever is earlier. 15. (1) The value ofa supply ofgoods or services or both shall Vdueofmbk WPPIY. 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 isthe sole consideration for the supply. . ' (2)Thevalueofsupplyshallinclude-

(a) any taxes, duties,- cesses, fees and chaps levied underanylawforthetime‘beinginforceotherthan this AettheCen‘tral GoodsandServieesTuAet and the Goods and Services Tax (Compemation to States) Act. if charged separately by the supplier; y (b) any amount that the supplier is liable to pay in ' relauantosxfisnppiybutwlhehhasbeenmeuned by the reelplentgof the supply and not included in the price actually paid or payable foi' the goods or - *: services or both; 2e ‘ (c) ' incidental w ", including comriiission and packing, charged by' the supplies to the recipient .ofasupplyanyammmtcharged forahythingdone bythesupplierinrespectofthesupplyofgoodsor servicesorbothatthetimeof,orbeforedeliveryof goodsorsupplyofservices; .(d)interestorlaefeeorpenaltyfordelayedpayment ofanyconsiderationforanysupply;and (e)subsidiesdirectlyhnkedtothepriceexcluding subsidiesprovidedbytheCentralGovernmentand StateGovernments.,‘

Explanation:-F0rthepurpOSesofthissub--section.theamountof subsidyshallbeinclhdedinthevalue'ofsupplyofthesupplieswho receivesthesubsidy. (3) (4) (5) Thevalueofthesupplyshallnotincludeanydiscountwhichis given—_. (a)beforeoratthetimeofthesupplyifsuchdiscounthas beendulyrecordedintheinvoiceissued'mrespectof suchsupply;and- (b)afterthewpptyhaahoenefl’ected,if- (i)suchdiscountisestablishedintermsofan agreemententeredintoatorbeforethetimeofsuch and (ii)inputtaxcreditasisattributabletothediscounton thebasisofdocumentissuedbythesupplierhas beenreversedbytherecipientofthesupply. Wherethevalueofthesupplyofgoodsorservicesotboth cannotbedeterminedundersub-section(1),thesameshdlbe determinedinsuchmannerasmaybeprescribed. Notwithstandinganythingcontainedinsub-section(1)or sub—section(4).thevalueofsuchsuppliesasmaybenotified bytheGovernmentontherecommendationsoftheCouncil shallbedeterminedinsuchmannerasmaybepresa’ibed.

Explanatton- For the W d“ All;- ‘persanShaubedmdtohie‘ I I f- (a) (b) (a i-. F: vii. such'persons are ofic‘en o: «bani- .mha's _businesses; such persons are eniisloyer and flip: any persondirecflyorinlflredlynubcuds twenty five per centormotedthflwfing L,stockorsharesofbothofthem; one of them directiyorhi’directlyen—ltiedhn; both ofthem are direetlyor mm». thirdperson; together they directly or indirecflyculdatflllpm Ol':-:7 viii.theyaremembers'ofthesamefirmly;A the term “person? also includes legal persons. - persons who’are associatedinthebusinesofo-e-nths in that one is the sole'agentor sole am «- ode concessionaire, howsoever described, of the hflur. H be deemedtoberelated.

WV INPUTTAXCREDIT l6.(1)Everymguteredpersonshakwbjecttosuch‘m andresmctxonsasmaybepmcribedmdmthem specifiedmsectton49.beentitledtomkecreditofinput taxchargedonanysupplyofgoodsorservicesorbothm himwhichareusedormtendedtobeusedinfliecourse orftmheranceofhisbusinessandthesaidamountshall ‘.becreditedtotheelectmniccfeditledgerofsuchperson. '(2)Notwithstandinganythingcontainedinthissection,no personshanbeenufledtothecreditofany' mputminrespectofanympplyofgoodsormcesor bothtohimunless,—, (a)heisinpossessionofataxinvoiceordebitnote issuedby'a'wpplicrregisteredunderthisAct. ormchdthertaxpayingdocumentsasmeybe (b)hehssreceivedthegoodsorservicesomboth. Explanationr—-Forthepurpos'eof’this’daune,it~sinfl-bedeemedthat flieregisteredpersonhasmemdflsegoodswherefliegoodsare deliveredbythesnpphettoarecipientoranyotherpersononthe dimcfionofsudireglstemdpemomwheflieracfingasanagcntor' othemisqbefoxeordufingmovementofgoodseitherbywayof transferofdocumentsoftitletogoodsorotherwise; (c)subjecttotheprovisiom-ofsection41,thetax dmgedinrespectofwchwpplyhasbeenachnfly psidtotheGovernmenLfiberinMOt-thsough mammmmmm- ofthesddlupplyssnd_ _ . '(d) hebasfiimishedthetetumfiudersectidiiflt' vaidedthstwhuemegoodsagsinstaninvoicearereceived mlouorinsullmmmflnregimdpersonsimnheenfifledtomke credituponreceiptofdlelastlotorihmument: vaidedfiirflierthstwherearecipientfailstopaymthe supplierofgmdsorservices-m'both,otherthanthempplieson whichtaxispaysbleonreversechargebashtheamounttowards tbevalueofsupplyalongwitbtaxpayablether‘eonwithinaperiod ofonehundredanddghiydeysfi'omfltedateofissueofinvoiceby thesupplier,anamounteqtnltotheinputmcreditsvsfledbythe mpmntshanbeaddedmhhmnpnmflsflimdongwnhmtemt thmominsuchmannerasmsybeprescribed:. mildwndifiom hHI-riwm

436E1961'L, -17. Provided also that the recipient shall be allied to ad of the credit of input tax on payment made-by limit“ wards the value of supply of . goods or services oi bah h! wih tn payable thereon. (3) (4):; . seeds onservices orbothafterduedaeofinihqcf (l) 5shallnotbeallowed. Where the registeredpgsanlnschndhmm thetaxcompenent 9f the cost qfcqfldpob all pan and machinery under thepmviflmdfiem Act. 1961. the inputtax aéaitqpfiudpm Are glistered person shallnotbeent'gledwq‘tu credit in respect of any invoice or debitnochqflyd’ the return éuhder Section g9 for the moiih d'Sqdrx following the" trait of fifiancial tear to. -Ihid- ad! inv‘dice' 6r ii'fi'roice relating to sfichdebit net prim or furnishing of the relevant annual return. vrlidsaer ’3 earlier. ‘ ‘ ' » ‘ Where the} goods or serine‘s or both are used by the registered person partly for the purpose of any m: and’paxflyz-fot other purposes, the amount d’credi dual _ be restrictedvto so much of the. input tax as is m ‘to the Pm“? of his business. (2) Where the gdods 0r services or both are used In the registered person partly for efl’ecting usable stub including zero-rated supplies under this Act or mder the Integrat‘e‘d'Goods and Services Tax Act and path for effecting, amph- supplies under the suit! Am the ' amount ofiexeditelfili be restricted to so much cfthe (3) (4) ,- inputtax as is attributable to-the said taxable studies ; including zero-rateq supplies. The value of @th supply under subsection (2), shall be such as may be prescribed, and Shall induk snafu: on whi‘éhé‘flieirecipient is liable to pay tn on m charge basis, transacflonsinsecufifiessaleofhndad. ‘ subject‘to clause (is) ofparagraph of Scheditle II, sale d building; ' ’ A‘hanking company or a financial institution Wig afionrhagkmsfinanciai company.§nsae=d in mine services by Way of aecepting deposits. extendingloam or advances shalI have the option to githeg eqmply with the provisighs 6f sub-section (2), o'r‘hvai'l of, every ninth, f an amotmt equal to Wine? cent. '0me eligible input tax

creditoninputék italgoods‘andinfihtséivicesindnt month and the " ' f “ "‘gha'H-‘lap’se: 1:13 4, Apportionmentofcredit andblockedcredits.

- ' 'f i375“? a; ’ , Provided that the option once energised shall not be withdrawn during the remaining partrof the financial year: .‘j Provided furtherthat thegggggtion of fifty percent shall not apply to the tax paid on supplieg. mgde by one registered person tpiapother regiStereélppersoh havpg the same Permanent Account "Number. ' ‘ m ‘ ' (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‘ignth‘tither conveyances except when theyareused— (i) for making the followmg' taxable supplies, l .__ (A) furthe’rsupply of sud: vehicles or comyancagm' (B) fianspomfion 013mm" ”or ' (C) mgmt ,mimng 0” driving, , flyingnavxgatmg .,§uch vehicles or conveyances; ‘ (ii) for hanqurtation ofgoads; (b) , the following supply of gbods or services or both:- _ (i) food and x: beverages, ,outdoor catering, beauty treatment, health services, cosmetic and plasticrsiu’gerx except where. an inWard supply of goods of services or both bf a particular, ,étegory is used, by ‘4? resistered person formakmg an outWard taxable supply of the same category of goods of services for both or asan element of a taxable composite or mixed Supply; - - _ (ii) member'ship pf a club, health and fitness V centre; ..»

(C)- .plantandmaehmery) exceptwhereitisaninput (d) (iii) rent-a-cab,1ife inmrance and health - msuranceexceptwhm- (A) tli'e‘Gd'yemme‘nt nmifls the services whichareobligatoryfilranemployerto * pféfidetoftsemployeuunderanylaw “fdrfliehmebemgmfixuqor “E(B) 'suchmwardsupplyofgoodsorm orbothofapartiwlarcategqryisused by a registered person for mking an ‘ :‘outward taxable supply. ofthe same "Vcategoryofggodsorservicescrbothor aspartofataxableeoinpositeormixed .snupplxsandfi (iv) teaveltrbenefite extended to employees on vacatien such as leave or home travel concessions . workscontractserviceswhenstudiedfor ’construction of an immovable property (other than t,» service for fiitther supply of works contract service; goods, at sefwoes or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are ?;nsedinthecourseoffurtheranceofbusiness Explanation: ~For the purposes (if clauses (c) and (d), the expression construction”includes reconstruction, renovation, or alteratiohs or repairs, to the extent of capitalization, to the said immovable property; ‘ ,, .,, Lie) (0 (s) (h) (i) geods or” giants, both on" which tax has been paid under sectionlO; goods or services 61' bbth receivedby a non—resident taxable person except on goods imported by him; goods or services or both used for personal consumption; ' gobds lost, stolen, destroyed, written otter disposed of by way of gift or free samples; and any tax paid in terms of sections 74. and 130. (6) The Government may prescribe the manner in whidi the credit referred to in sub-sections (1) and (2) maybe attributed.

Explanationk For the PW at this Chapter and Chapter VI, the expression “plant and machinery meansappamtus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and struemr‘alsupports but excludes- ' , (i) land, buifdmgoranyothercivilstructures, (ii) telecommunication towers; and , . (iii) pipelines laid outside the factory premises. e (1) subject to such conditions and restrictions as may” be ‘pIeseribede - V‘ V siziix’r (a) a person: who has applied for registiation under thisActwithinth‘n’tydaysfrom'thedateonwhich he becomes liable to registratiOn and has been grantedsuchregistrationshallbeemitledtotake creditofinpmtaxinrespectofinpmhddinstock _ mdmpmscmnmrimmfinflwdam ‘: ‘'hmmwhflihebeoomeshable tnpaytaxundeethepmvmonsofthism » ib)a9618011Whotakesxegistratidnundensub-uetion

‘ x , -:(3) ofseetionzsshallbeEenfifledtotakecreditof‘ ., puttaxinrgsxtpctofmputsheldinstockand' .1-inputsoontamed-iasemi-finishedorfinishedgoods t. gheldinstockgnthe dayimmediatelyprecedmgthe M: date of- grant of registration, :, (c) where any registered person ceases to pay tax - " under section 10, he shall be entitled to takepmdit :ofmputtaxmrespectofmputsbeldmstock. inputs contained in semi- finished or finished goods held' in stock and on mpital goods on the dayunmediatelyprecedmgfliedatefromwhichhe '1 becomes liable to pay tax tinder section 9: Provi (ed that the credit on capital oods shall be reduced by such percen e points as Inay be prescribed, "s;

(d) wherefian Exempt supply of gpods n; seryices or . both by a gegstered peglpn hewmes a taxable . ,. nippjy, such person shall ‘ entitled to take credit

,,,,, ’ ‘ inputs contained' in semi-fimshed or finished goods 'held' in stock relatable to such exempt supply and onespitaigendsexdusiveiyusedforsuchexemm ,supplyonthedayimmediatelyprecedingthedate'. . Ad , from which such snpglybedomes taxablez, Availabilityofcreditin spedalcixtumsm

,,ProvidedthatthectetIit-bnWsunberednwdby, such percentage points as maybeptficflbed- , .(2)_ '(3) (4) Aregisteredpeison‘shallnotbeentitledtoat:wtax creditundersub-section(1)inrespectofayguiyofgoods orservicesorbothtohimaftertheexplryrmeyarfmmthe

dateofissueoftaxinvoicerelatingto""supply. Wherethereisachangeintheconstitutionofaregistered persononaccouhtofsale.merger,demerger,umlgmfltion, leaseortransferofthebusinesswiththespecificpnw'siomfix transferofliabilities,thesaidregisteredpersonshallbeallowed totransferthemputtaxcreditwhichmainsunutilisedin ‘his electroniccreditledgertosuchsold.merged,mud, amalgamated,-leasedortransferredbusinessmsud:unmet asmaybeprescribed.-. Ii ‘Whereanyregisteredpersonwhohasavailedofinputtaxcredit optstopaytaxundersectiOn10of,Wherethegoodsorservices I'orbothsuppliedbyhimbecomeexemptabsolutely,heslnll payanamount,bywayofdebitiiitheelectr'oiiiccreditledger orelectmniccashledger,equivalenttothecreditofinputtax inrespectofinputsheldinstockandinputscontainedinsemi- finishedorfinishedgoodsheldinstockandoncapitalgoods. reducedbysuchpercentpointsasmaybeprescribed,on .-thedayimmediatelyprecedingthedateifexercisingofsuch optionor,asthecasemaybe,-thedateofsuchexemption: Prefidedthat‘afte’r'paymentofsuchamount;thebalanceof inputtaxcredit,ifany,lyingmhiseleetmniccreditledgershalllapse. (5)Theamountofcreditundersub--se¢tion(1)andtheamount (6) payableundersub-sectioh{4)shallbecalculatedinsuch mannerasmaybeprescribed.' IncaseofsupplyofcapitalgoodsorpIantandmachmery,on whichinputtaxcredithasbeentaken,theregisteredperson shallpayanamountequaltotheinputtaxcredittakenon' thesaidcapitalgoodsorplantandmadnneryreducedby suchpercentagepomtsasmaybefirescnbedorthetaxonthe :transactionvaliieofsuchcapitalgoodsorplantandmachinery determinedundersectiqnlswhicheverIShigher. Pmdedthatwhererefractoryxbmks,mouldsanddies,)igs andfixturéiaresuppliedasscrap,thetaxablepersonmaypaytax onthetransaetionvalueofsuéhgoOdsdeterim'iiedundersectionlS.

l9.('1) ;<22 _ credit oninputs sent to a job-worker for job-wonk. ?‘37 ‘Ihe principal shallf subject to V suehjcondmohs find restrictions as may be prescribé’ii, behiféwedinfilt tax ‘) NewsStandmganythngfita‘ifiédmdafigéfilfl" section (2) of section 16, the pmicgral shall beieiittified tn take credit of inputtax on‘ inputs iijif the inputs are '3 directly sent to a job Worker for onfLWéifk withbut‘being (3) _ first brought to his place of business. Where the ifiputssent’ for job Work are not received back by the Brincipa‘l after completion of ‘job-wozk or otherwise or are notsuppliegi from the place of business of "the job worker in accofdaiice with clause (a) or clause (b)of sqb-section (i) of section 14.3 within me year of being sent but, it shall be deemed that‘such innit; had been supplied by‘the principal to the job-worker on the 5-daywhen the saifl'inputswm sent out: ' Provided that where the inputs are sefit'direcflyito a‘job ‘wOrker, theperio‘a of one year shall beimmmd frbitiithe dhte of A receipt of inputs byt’the job wbrkét». ' - J ' ’ (4)_ 5‘33:‘' The principal shall, subject to such eohditions and 'iestrictions as may be prescribed, be alloyiEd input tax ‘if Credit on capital goods sent to a jobWorker for job work. (5) .{fiétéiihmdmg anyflmm‘ ”g mm in clause (b) ofsub- section (2) .of seqh'on 16, the principalshall be entitled to take credit of input tax on capital goods even if the Lcapital goods are directlyfiént to a job werker for ”job- . ; Work withoutbeingfirstbfbughftdhisplaée ofbusiness. (6);” Provided that where the capital goods are sent directly tga job worker, the period of ' thxee years shall be counted from the 32m of ' Where the capital goods sent for' job work are not received bad: by the principal within a period of three years of being sent out!» it shall ,beideemedtthat such .ymcapital goods had beemsupplied by the principal to the _ job worker on the day when the said capital goods were sent out: j . _ ‘ receipt of capital goods by the job worker; (71“; . Nothlng tcpn‘tained- in.sub-section;l(3)g9£§§::h;:se¢:tion (6) shall apply to hxpuldsgandiciies,rjigs aiidfixtures, or tools sent out to a job wbrkei' for job whirls~ Taking input tax credit in respectofinputssentfor jobwork.

EsplanationejForthepurposeofthissection,“principal”meansthe flyersonreferfedtoinsection143.' 20.(l)TheInputSavioeDistfilmmrshalldistributethecreditMnnncrofdistribinion ofsentenxammamaedmandhmgmedofcreditbylnpfltSerVice ‘mxamdpxqmmbymyofimeofMW documatmtheamountofiqlutincredit beingdisuiudh-chmasmybelxacfibed. (2)mmmmmmgm .mmflnmmuflr— {1)theceditanbedistinct]tothereapienfsof ’--'qeditwa(ham«miningsuchdetails » -asmlybe I(bI)theamumdtheaeditdmhmddiaglnmqmed ;theamonfitofqeditavaihblefordistnbuiion; (c)thecreditoftaxpoidoniqmtserviceuttributable toarecipientofaeditshallbedistributedonlyto thatrecipient;a (d)thecreditoftaxpmdonmputservmatm‘butahk tomorethanoneredpientofaeditslallbe distributedamongstsuchrecipientstowhomthe inputserviceisattributableandsuchdistribution .shallbeprorataonthebasisofthetumovetinaState 'orturnoverinaUnionterritOryofsuchgeapient, duringtherelevantperiod,totheaggregateofthe turnoverofallsuchrecipientstowhomsuchinput serviceisamibtitab'le'andwhichareoperationalin -~thecurrentyear,duringthesaidrelevantperiod;I (e)'thIIe'I‘creditoftaxpaidoninputservicesattributable \to'allrecipientsof‘creditshallbedistributed amongstsuchrecipientsandsuchdistribution'Shall beprorataonthebasisoftheturnoverina State orturnoverinaUnionterritoryofsuchrecipient“ dmingtherelevantperiod,totheaggrbgateofthe turnoverofallrecipientsandwhichareoperatic'mal inthecuttentyear,duringthesaidreleyantperiod. Explanation:-Forthepurposesofthissection,— (a_i‘the“relevaatperiod”shallbeI-I (i)iftherecipientsofcredithaveturnoverintheir States01'Unionterritoriesinthefinancialyear preceiiihgtheyearduringwhichcredit"istobe distributefithesm&financ1alyearor'"'

~21. (ii) if some or all reupiehts of the credit do‘not have any nunovei-f‘ili theirSmtes or Unibn tem‘tories in ; v the financial year preceding the year during which the credit is to be distributed. thelastguarter for _,I (I Whichdetaflsofsitehtgenoveeofalltheredpients ' ‘ are available, prefiii’usto the month during which ,éreditstobe'dissms (b) the expression “ieeipient oig eredit' means the supplier of goods or services or_both havingthe same Permanent ‘ Account Numbeeasthatofthe Input Service Distributor; (c) - the terin ‘tumowr‘ *ih‘a‘ehttion t6 any‘registered person engaged in the supply of taxable goods as well as goods ‘ not taxable under this Act, means value of turnover, reduced by-rthe’ amount‘bf any duty orltax levied underent'ryuofljstlofthe‘SeventhSdieduletothe ConsfinmonandalrySIandfloffistnofdaedd Schedule. mmmfim"toms;-m4m-mzo :mum,.

fl ,awmeforme

recipients ofaedit.’ " ' themes: ' credit QSW j ' " shall be recovered from such recipients along with. interest, and 'the provisions of section or section 74, as the case may be; shall mutatis mutandis apply for determination of amount to be feqoveted;I lhnerofzeeovuyof aeditd'ltflnmdin

'22.(1) ~CHARTER:Y1 Inssmttsnon IIsS Everysupphermalngga‘taxablesuppiydpodsor servicesoi'bothmtheStateshallbehabletobenylued underthisActifhisaggregateturnoverinaEm! yearexceedstwentylakhrupees: Providedthatwheresuchpersonsnakestaxablesuppliesof goodsorservicesorbothfromanyofthespecialcategotysmhe shallbeliabletoberegistered1£hs§3aggregateturnpvetinnlingual yearexegedstenlalthmpees.<2

Eyerympphetmakingktaxablesupplyofgoodsorservicesor bothfmfltheState,shallbehabhtobe:egisteredunderthisActifhis aggregateturnoverinafinaneialyeuexceedstenlakhrupees.' (I2) (4) Everypersonwho,onthedayimmediatelypreceding atheappointeddaysregisteredorholdsalicenseunder anezdstinglaw,shaHbeliabletoberegisteredundea'this Actwitheffectfromtheappointedday. ‘Whereabusmesscamedonbyataxablepason mg'SteRdunderthisActisuansferreiwheflieton accountofsuccession orotherwise,toanotherperson asagoingconcern,thetransfereeorthesuccessor.asthe casemaybe,shallbeliabletoberegisteredwitheffect fromthedateofsuchtransferorsuccession. Notwithstandinganythingcontainedinsub-sectiom (1)and_(3),.inacaseoftransferpursuanttosanction of aschemeoranarrangementforamalgamationflor,as 'the casemaybe.de—mergeroftwo0:morecompanies pursuanttoanorderofaHighCourt.Tribunalor otherwise,thetransfereeshallbeliabletoberegistered. witheffectfromthe.dateonwhichtheRegistrarof Companiesissuesacertificateofincdrporationgiving' effecttosuchorderoftheHighCourt. Explanation:—Forthepurposesofthissection,— (i) (ii) theexpressionaggregateturnbvershallincludeall7 suppliesmadebythetaxableperson,whetheronhis ownaccountormadeonbehalfofallhisprincipals; thesupplyofgoods,aftercompletionofjob-work,bya registeredjobworkershallbetreatedasthesupplyof 'goodsbytheprincipalreferredto insection143,and thevalue.ofsuchgoodsshallnotbeincludedinthe aggregateturnoverofthe'registeredjobworker. Personsliablefor registration. OnlyinSGSTIzwfor specialcategoryStates wiinnthepmviso

41, (iii) are expression Whetégory States" shall mean the ' 1'»; Sumsasspeafiedinfinhvddusewofdauseflhfamde :ff * ‘ 279Aoftfieconstimr§n ‘7 (l) Thefiifirmngpersqnsshallnothehahfetoregistran Perm-milleh namely:- 1:43; (a) anyperson ' inthebusinessof alpplyinggmdsprservicesorboththatarenot. liablétotaxorsvhollyexerpptfromtaxunderthis Act or under the Integrated Goods and Services TaxAct; . ' 1:39;”: (h) anagriculturist t6 the extentofsupplyof 'f’ ' ‘ ornofcdtivatron ofland. (2) The Government may, on the recommendations ofthe Whymdfiammspeafydieategoryofpemm whomaybeexemptedfrunobmmmgreglstrationunder thisAct. 311K325 1’ 31': ' MW in sub—section (1) of. Compulsoryregistration “CHOP 32-4119 Mowhgmonesotpmlndemhng inceminensu. . taxablesupphesshallberequrredtoberegrsteredunderthis V Acn- . (i) persommlunganyinterStatemahlesupply- (it) casualtuabiepersonw %i (iii) personswhoaterequiredtopaytaxunfierreversecharge, ’ (iv) person who are requn‘edto pay tax under subsection (5) ~ ofscctionfi: a , x (v) non’mident taxablepersons; ' » . ' (vi) personswhoarerequrredtodeducttaxundersecuonSI whetherornotseparatelyregisteredunderthrsAct; , ,:. (vii) personswhosupplygoodsorservrcesorhothonhehalfof , othertaxahlepersonswhetherasanagentorotherwrse, (viii) input servicem Whether or not separately WunderthisAct: - (he) penohswhosupplygoodsorservrces orhath other than supplies specified under sub-sectic’m (S) of section 9, through such electronic commerce operator who is; reqhiredtocollecttaxat source undersection ' Wk) everyelectronrc commerce operator, , (xi) every person supplying online informationand data hase accessor servicesfmmaplnceoutsidelndtatoa personm otliuthmaregrsteredpusomand _,» (nflsuchotherpepqnorclmofpersonsasmeybenonfied :. by the 1,} ,thermommendationsofthe Council “ "

‘ 43ofl961 4.2 25. (31333.333 Ever; Pfif§9§ MIDAS liable to be regsteredghdel; section ,3; 33. 2.20;; section 243.5%“, finreglstrahen within thirty days fr6m the 3on3 which he;bee'pmes liable , to registration. in ad mannaand3 subJect to such conditioh‘a as may $1er ‘ II 3f; :1! Previ6%d that a cas’ual I or ’anon-resident taxableéfierson shall apply for re ' the connnencementofbdsfiess I : f. mawéemnwhomakesawp lggrplnthetantenal tamregstgationm tatewhaethemrest point ofthe appropriate baseline ls Iocat in the State. . . in: ~ in. met 2‘ a ~ arms (2) A {lessensedan? ‘ '" grantedasfigk“°i‘“ (3) Provided that a person having multiple business vatialls indie State maybegranteéas use for eachbflsinesswrtieal maefitflsfiEheo %may ii? be prescfibgd. ifs-“£2.53 432.; (3) Aperson,thouglinotliabletoberegisteredundasection of semen: mayget himsdf tegmered voluntarily, and allprovisions ofthisAet. 35me a registered person, shall apply to such _ , L—rK-‘flfl" (4)“ '-:‘Aperson who hasohtamedoris reqmredtoobtam more than one registration, whether inbile State or Union ' Territory ormore than one, Shalom Union memory shall, ,3 in respect efeaeh suehreglstrgtien, betreatedas distinct persons for the purposes “it!“ Aet. ('5)‘ Where a person Whohas‘oeta‘fnea 6fis retjulrefl to obtain I , registration inaState orUnion territory ill reaped ofan j establishment, haSani esfilflirmnt in another State or ' ' Union territory, then such establishments shall be treated .. asestablishments of distinet persons fondle purposes of this Act. , , . 5-317 E35: (6) Every person shall have a Permanent Apeeunt Number issued under theIncome—tax Act, in order3 to be a?” eligible for grantoih‘eglstrafi thatap so‘n qulfd eduitt‘afi'underseetlon Slmay have.I in Iieu to?“ a Permanent AccountLfiufia, aTax Deductréh and (Selleetion fieeomt’i‘lifinhel’“ " ' ~ I Act' in ordei’ febe eligible for gt’aIilt of Iégigfiafld I I ‘j 9,; «vi L10») Procedure for _ Registration.

(I 5‘43 #3 my; irfils (7) thwithstandin anything {3113sz -section (6), a non- resi ent , grain may be, granted ' registration under Sigh-section(1)911 itheybasis of such other ociimentsaas may be preset: bed. 7. (8L Mgr;aperson when liable togbegegistexed under this t; 3,3Actsfails to obtainregistratign. the proper oficer may, swathput prejudicg to, any action which may betaken if underflusActorunderanyoflierhwforthenmcbemg in £orce, proceed igregister such person in snehmmer m"- H a; run, qt» rawmqtid‘n} (9) Notwrthstanding anything contained in sub-section (1),— (a) any spéaahzed agency of theUnited Nations Organinition or “any minim Pimi'iéial InstitutionandOrganiutionnntifiednnderthe Unitedflmonsmandm)kt. 2194? ConaMorEmbassyoffirdgneounuies; and . 3f; 3§3:3|: 311314-523 “(b)'¥- any other person or class of persons, as may be notified by the Commrssxoner, ’ ' shall be gxgnted a Unique IdentityNumber' in such manner and for such purposes, includingrefund oi taxesonthe notified supplies of goods or: sexvicesprboth received by them, :as maybe prescribed, (10) The registration orthe Unique mews; ber Shallbe»; granted or rejectedafter due vitrification in such manner andwithin suchpgmdas maybeprescribed. , (11) A certificateof registration shallbeissued'in suchform and with effect from such date, as may be- prescribed. (12) A registration of an Uniqueiidentity Numbershall ‘ be déemEdto have béert‘ granted aftet the expiry of tlié period prescribed under sub- section (10), ifno defiaency hasbeen communicated“in theapplicant within that period. (1) The grant ofregistratioti or the Unique Identity Nurtrber . fider the Central éoods and Séxvices Tax Au shall “ a Roi registration or the Unique. Identity Numbgrenngreipfliis Act subjgct to;_the condition {hat the application for registration orthe Unique Idefldty Whit? hasnot been’i‘thted underthisAct Within”the tinié‘i spherfied iii'siiiii section (it?) of section 25. Deemed Registration

(2) Notwithstanding anything contained' un sub-section (10) of section Zfi‘anx rejectuon ofapplication for registration' ortheUnuqufldentityNumberundertheCentralGoods andSsvicesTaxActshallbedeenuedfobearqecuonof application for re‘iustfatzan unilerthis Act. (I) 'Iheosnfieiteofregustration ussuetlbamhlhnhle person ora non—resident taxablepershnihalbevahd -forapsuodspeefieduntheapplicauoui firregisinfion arninetydays from theeflbctivedate‘ofrefiluatuon. wherandsachpersmmmzble supphesor‘, AWcsfifia-atetuf Provi" .2 dad thatthe proper officer may, ohsaficient “use. being shownbythe said taxable penonextend the saidpetiodot'ninety days hya furtherperiodnot exceedung nmetydays. (2) A casualtaxable person or a non-residenttaxiie , person shall, atthe time ofsubmission of applmuon fist registration under sub-section (1) ofsodium 25. nuke an advance deposit of tax 111an amount equivalent) the estimatedtax liability of such person for the psiod be ' which the registration us sought: ., Provideddrat where anyextension as tinie‘lis soamt with: s-ubsectio‘n (l), shch taxable pefsén shall Wabash-nu amoant’oft'axequivalenttothe estimatedtaxliabilityofstudipssm forthepenodforwhuchthemeasionlssoaght. , : (3)- The amount deposited under sub-section (2) dialbe creditedtothe electroniccashledgsofsadipssnnand shall be utilised unthe manner provided andssection ' 28. (1) Everyregistered person and a person towhoma - Unique IdentityNumber hasbeenassumedshlllinfiuun the proper officer of any changes in thebum -furnishedatthe timeofregustratuonorsuheeqasl thereto, uh such form, manner and within such psiul as may be prescribed. .. (2) The proper officer may, on the basis of inform f furnished under sub- section (If a:as unstainedby '5“ him, approve or reject amendments in the "“3 j particulars in such maths and Withun such period a ‘ ”i” maybeprescnbed. ' Provided that appmufal of the propernfiies “mt be required in respect of amendment ofsuchparticularsaa my be prescribed: Special provisions relating to casual taxable person and non-resident taxable person. registration.

29. ’45 .3“, Prowded further that the proper ofiicer shall not reject the apphtation for amendment in the registration particulars without giving the person an opporthnity of being heard. . i (3) Any rejection or app “I, Central GoodsandSerVicesTax Act shallbedeemedto . fih‘n filof amendments under the be a rejection or approval under this Act. (1) The proper officer may, either on his ownmotionoron .7“?" (2) The proper oHicer niay cancel the registration ofa person v an application filed by the registered person or by his legal heirs, in case of death ofsuch person, cancel the registration, in such manner and, withinsuch period as may be prescribed, having regard to the circumstances thre,4 ‘ . (a) fiebunnesshabemdmnnmeduansferredfully *for any ream indndiiig death of the proprietor. ,malgamatedmfioflnhgalumtxdanagedor otherwfieWof-or -~ --- (b) there is any change in fie Constitutmn of the business; or ‘ ' . (C), the taxable person, other thantheperson registered ’" under sub-section (3) ofsection 25, isno longer, liable to be registered under section 22or section , . fromsuch date, including any retmspective date, ashe may deem fit,where,- (a) the registered person has contravened such . provisions of the Act or therules made thereunder as may be prescribed, or (b) ‘a person paying tax under section has not ' furnished returns foir threefeonsecutive tax periods; ' 01’ (c) anyperson, otherthana person specified in clause ‘ (b), has notWedreturns for acontinuous period of six months; or 7.‘*(sl)._ any person who hasiakengyoluntary registration under nib—section ($3); of; section 25has . not commenced business within six months fromthe dateof registration; or mate) i, registration has béenobtained by_ fneans of fraud, “5‘ Wiflful' misstatementor suppression of facts. Prbv’ided thatthe proper- ‘ofiicer shallnot cancel the registration without giving the person an opportunity of being heard. Cancellation of

(3)" The cancellation of registration underthis section shall notafl'eettheliabilityofthetaxablepersontopaytaxand ; other dues undenthis Act orto e any hpligation {K} under this Act or. the roles thereunder for any (4) A (5) period prior to the date ofcancellation whether ornot such taxand other dues are determined beforeor after ' .1 the date of cancellation * The cahcellation of registration under theCentral Goods ' and Services TaxAct shallbedeemed to be a cancellation ' "oi’registration under this Act. "35.7 Everyaegistered person whoseW is cancelled A shall payian amount, byway- otidebit in the electronic credit ledger or electronic cash ledger. equivalent tothe creditofmputtaxinrespectofinpntsheldmstockand inputs contained in semi-finished or finished goods held V in stockorcapitalgoodsorplantandmachmeryon the dayimmediatelyprecedingthedateofsuchmncellation . _, or theoutput tax payable on suchgoods, whichever' is A higher, calculated' insuch manner as may be prescribed: Providedthatin case ofcapitalgoods’orplant andmachinery, the taxable person shall pay an amount equalto the input tax credit takenon the said Capital goods or plant and machinery, reduced 'bysuchpercentagepointsas maybeprescribedorthetaxonthe transaction value of such capital goode or plant and machinery under section 15, whichever is higher. (6) 30. (l) (2) " (3),. Theamount payable under sub-section (5) shall be _ mlculated'in suchmanner asiifaybe' prescribed. Subject to such conditions as may be prescribed, any registered person, whose registration' is m’n'celled by the - proper officer onhis own motion; may apply to such officer for revocationof cancellation of the registration . in the prescribed manner Wlthln thirtydays from the . date of service of the cancellation order. A The proper officer may, in suchmanner and within such ' period as may be prescribed,by order, either revoke - cancellation of the registration or reject the application: ., ,l i'Ihe revocationofieancellation of registration under the '- ”‘ ‘ Central GoodsandServices Tax Act shall bedeemed to *2 {be arevocation of cancellation of registration under this ' Revocation of . cancellation of ! egisn m0" 1.

. r,vn TAx‘moIcncnmrr AND DEBIT NOTES 1% 3i. (1) I; Aregisteredpersonfmlyingtaxablegoodsshamwore , - or at the time ofi- . (a) ,. removat‘of’ goods for supply to the redplent, where the supply involves movement Offg‘bods; or” (b) deliverylof' goods or making available thereofto the _ _r¢6iPient- in any 9th.“ case. ' issue a taxinvoice shouting the description, quantity» and valueof goodsythe taxcharged thereon and such other particulars as may be prescribed: ‘ , _ Providedith‘atthe Government may, on the recommendations ‘ of the Council, by notification, specify the categories of goods or supplies in respectofwhidia taxinvoicéslnllbeissiedmvithin such time and in such manner» may be prescribed. . (2) Ai‘regiStered person supplying taxable services Shall, _- beforepr aftertheprovisibnofservicebutwithina period prescribedissue a tax invoice; showing the description, ' value; tar . ’ thereon and such other particulars‘as . may be prescribed: ‘‘ , _Pt0vided that theG'overnmentmay, 631m recommendations of the ”Connoil,‘ by 'nbtification and subject to the conditions mentioned therein,spe‘cifythe' :categories of services in respect of i (a), ' " any other document issued in relation to the supply shallbedeemedtobeatagin‘voice;0r (b) taxinvoicemaynotberequircdtobeissued. (3) ' Notwithstanding mm; containedinisub-sections (1) ‘ and (2)—: (a) ,- a registeredpemn mafiWithin 9n: month front the date of issuance of certificateof registration j .andinsuchmanneras maybeprescfibedissuea revised invoice againstthe invoice already issued during the period beginning with the effective date Ofwonfinihe date ofissuance of certificate sofregistrafiontohini; » (b) a registeredpersonmay not issue a tax invoice ifthe vaifieofthe goods arsemces orbodi supplied is less ‘* {bib Mohundred’hipees ‘ :subject to such. Conditions ' and in’suehmanner‘as‘inay be prescribed; ‘Taxinvoioe.

(c) a registered p‘e supglying ' can? ,. goods or . servites orbothhogrypaymgmunder (provisions ' ofsection10shall issue, instead ofatax invoice, abill of supply containing such partiuilars and‘ in such mykpresciibed. ‘ Providedthatthe registeredpersmmaynotnsueabillof supplyifthevalueofthegoodsor servicesorbothsuppliedisless thantwohundred rupees subject to such conditions and'insuch manneras may'beprescribed; ' (d) a registeredperson Shall, on receipt ofadvance paymwentwith respecttoanysupplyofgoodsor ~,semicesorboth, issuearecerptvoucherorany other document, containing such particulars as my be prescribed, evidencing ancerpt of such . payment; » - ; ts); (f) ‘ issuea payment voucher at the timeof making , payment to the supplier who is not registered under ., where,on receipt of advancewith respect to any supply of goods or services orboth the registered ' person issuesa receipt voucher, but subsequently no supply' is made and no tax invoice is issuedin pursuance thereof thesaid registered person may iS‘sue to the person who had made the payment, a _ refundyoucher against suchpayment; a registeredperson who is liable to pay taxunder sub-section (4) ofsection9shall'issue aninvoice in respect of goods or services or both receivedby him on the dateof receipt of goods or servrccsorboth, ' ea, registered person whois liable to pay tax under. sub—section (3) or sub-Section (4) of section9shall “the'Act. ““» (4) Incase ofcontinuous supply of goods, where successive ‘ statements of accounts orsuccessive payments are involved, the'invoiceshall beissuedbetcieor atthe time ' eachsuch statement is issued or, as the case maybe, each such payment is received. (5) Subject to the provrsions of clause (5d) ofsub-section (3), . in case of continuous supply of services,— (a) wherethe due dateof payment isascertainable fromthe contract, the myoiceshall beissued onor before the due date of payment; where the due date of payinehtis- not ascertainable , from thecongact. the invoice shall be issuedbefore ,.; or at the timewhen the supplier of servicereceives the payment; ‘

‘ (c) Where the payment is linked tothe completion of 7(6)" ranevenntheuivorceshallbeissued onérbefore thedate of compleuopcf that event. Inacasewherethesupplyofservrcesceasesundera icontractbeforethecompletisinoffiiesupplytheinvome ' "shallheissuedattheuniewhenthesupplyceasesand <7) sudivaiceshallbeissuedtotheextentofthesupply effected before such cessation. Notwithstanding anything containedin subsection (1); wherethegoodsbeingsentormloenonapprovalforsale w orretumareremoved beforethe supplytakesplace, the invoiceshallbeissuedbet‘oreoratthetimeofsuwly orsixmonthsfromthedateofremovahwhicheveris earlier. -E:tplanataon—Forthepurposesofthissection,theexpressron‘tax invoice” shallinchideanyrevbedinvoiceissuedhythesupplierin respectofasupplymadeearlier. 32., 33. 34. (1) (2) ' Aperspnwhoisnotaregisteredpersonshallnotoollect mrespectofanysupplyofgoodsorservrcesorbothany amountbywayoftaxunderthisAct. Noregisteredpersonshallcollecttaxexceptin accordancewiththeprovrsionsofthisActortherules’ madethereunder. / Notwithstandinganything containedinthis Act or any other lawforthefimebdnginfomwhereanysupplyismadefor aconsiderationmverypersonwhoisliabletopayuxforsudi supply shall prominently indicate'inall documentsrelatingto assessment, taxinvoice and otherlike documents, theamount oftaxwhichshallformpartofthepriceatwhich such supply ismade. (1) Whereataxinvoicehasuenissuedforsiipplyofany goodsorservicesorbothandthetaxablevalue ortax chargedinthattaxinvoiceisfoundtoexceedthetaxable , value ortax payable in respect of such supply, or where the goods suppliedareretumedbytherecipient. or 'wheregoodsorservicesorbothsuppliedatefoundtobe deficient, the registeredperson, whohas supplied such goods orservices or both, may issue tothe recipient acreditnotecontainingsudipmticularsasniaybe prescribed unauthorisedoollection oftax Amountoftaxtnbe g. indicatedintaxinvotoe Creditanddehnnotes.

5Q A2) ,A hnyregistgred personwho issues a eredit note inrelation f A 1,673 supply of seeds or services“ botfi shall declare the details‘flof such ‘credit‘not‘e inth'e return forthe month during which such’gi‘efit‘hote'ha‘s beEn issued butnot lMter than September fellowins the endat the financial W mwhwhsuch‘wwlv mmade or the date off-ling of the relevant annual return. Whichever is earlier, and if new; liabili ashall bquiTiSted in sueh: manner as may bepmsefiM'\ , Provided thatno reduction in output tax liability of the - supplier-shall be permitwd. ifthe incidenceoftax and interest on suchsupplihasbeenpass‘edontoanyotherperson. (9) ,Where a tax invoicihasbeenissued for supply of any - :39de or Whom and thetaxable value ortax charged inthattaxinvoiceisfoundtobelessthanthe taxable value ortax payable in respect ofsuch supply, the registered person, who has supplied such goods or ser'vic‘es’br both, shall issue tothe recipient adebit note containingsuch partiqnlars asrmybe‘pr‘eserihed. (4) Any registered person whoissues adebit note inrelation & to 9; supply ofgoodsor services or both shall declare the details of such debit‘iiotein the return Forthe month ‘ during which “such 'délifi‘inoteflh‘as been issued and the tax liabilityshafl hemmed in‘such manner as may be prescribed. . . .23’3? 2- - ’_ A : ' Explanationz—Eor the 'purposesof this? Acmthe Expression “debit " note"shall include a supplementaryinvoice. ..

5,1: 35. «(1) Every registered person shall keep and maintain, at - mmmorsaamsshmsomdmme certificateof regiitrauomaweand carrier accountof- ,.I- (g) , » production or. manufacture ofgqods (th ihwa‘td or. t :I“) both, W “ (é? ‘Mofgoods- ,, . (d) input tit:23m “331% A V V (eff 'outputtaxpayable Minna,” V (f) suchother particulars as may be prescribed “ ‘3 a f is; ’ t vaidedfliatwheremorethmonephaofbusmasrs .specifiedin thencertificate ofrefisti'atioir,‘ the museum to eachpiaceofhusinessshallbekeptatsuchphcetbfbuainefi- suppl“ 6f goo‘tisor servicesor 5:, Providedfurther that the registeredperson may keep and - maintain such accounts and other particulars :3ng form' m such manner as maybeprescribed. . miss. $33.“"1' ‘3"??59 (2) Every owneror operator: of warehouseor go60wn oil? anyotiserplaceusedforstoragedfgoodsandevery " WW1; irrespeeflwe ofwhethe’rhesis a registered ‘ «person or not. shall maintainregardsafthe consignee and other relevantzdet‘aiis of such goods as s maybepreséribed. :~-r:~ , (3) The Commissioner may notify a classof taxable persons to maintain additional accounts or documents forsuch purpose as may be specified therein. (4) Where the Commissioner considersthat any classof taxable persons is not in a position to keep andmaintain accounts in accordance with the provisions ofthis section, he may, for reasons tobe recordeddn writing. permit such class of taxable persons to maintainaccounts in such manner as may be prescribed. Accountsand other

$2 (5) Everyregisteredlifietioh whoa m during a accountsauditedbyacharteredamaaoost accountantandshnllsubmitacopyoflhemdbdmd ’ 24(2)°fsc$fi9n44andmotfiméognminmdam , audmspnewmaybepmaibed- . (6) Subject mike profisions of dausé (h) Jab-Section (5) x. ofsccfienl7wherethemsissgedpersonmmm forthem . «was 0:150thme section (l),theproperoficerslmlldeterniinefileamoum oftaxpayable onthegoodsorservieesoeboflndntm not accounted for, as ifsuch goods or samotboth hadbeensupphedbyfiéh‘pmv amalgam ' of- Wn 73:. Otzmfipnflasrthwsemaybe-Mm mutandts,‘ afif’for determmati‘ ofi ofsoéh'mx. ', ~, . . g»! g : 36. Bveryfifiistcredpésonrequiredtokeepandmaintainboob ofaccountorothcx moordaundermb-section (1)0fseetion35 _ shaflmtfinthununflltheexpiryofmtymwfim moi-duedateoffilingofanmalremmfordneyurm‘ ' to such accounts and records: , 'Wimfistécdpemnmhoinwybafifipda revisionoranydthetprooeedinfibefmemrAppdfleMu RevisionalAmhofitymAppdlateTribunalorcoumwhednfiledby himorbyfipeCommisdonenorisunda-Wfixnm undetClnpterXBLflnfl retain the mideafll other reCordspertaining‘o the subjectmnm ofsu'chtppenlu revision or Wotmvmhrtwbd ofone purifier fiml dispodofswh upped mievision‘ or pmceedingtonmufignion. orformepefiodspedfiedabmwhichcmishten v. Petiodofmentionof accounts.

CHAPTER-IX , RETURNS 37. (1) Every registered person, other than an Input Service Distributor, a non-resident taxable person and a person paying tax under the provisions of section10,section . or section 52, shall furnish, eleCtronically, in suchform and manner asmay be prescribed, the detailsof outward , Supplies of goods or servicesor both effected, during a tax period. on or before thetenth day ofthe month succeeding the said tax period and such details shallbe communicatedto the recipient ofthe said supplies within ' such time andin such manner as may be prescribed: Provided that the registered person shallnot be allowed to I furnish the details of outwardsup plies during the period from the ' eleventh day to the fifteenth day ofthe month succeeding thetax period: Provided further that the Commissioner may, for seasons to be recorded in writing, by notification, extend the time limit for furnishing such details, for such classof taxable persons as may be specified therein: / Provided also that anyextension of time limit notified by the Commissioner of central tax shall be deemedto be notified by the Commissioner. , . _ (2) Every registered person who has been communicated the details undersub-section (3) of section38 or the details pertaining to inward supplies of Input Service Distributorunder sub-section (4) of section shall either accept or reject the detailsso communicated, on or before the seventeenth day, but-nat'beforethe fifteenth day, of the month succeeding thetax period andthe details furnished by him under sub-section (1) shallstand amended accordingly __ (3) Any registered person, who has furnishedthe details under sub-section (1) flat any taxperiod andwhichhave , remained unmatched under ‘ section or" seetion 43, v shall, upon discovery of any- erroror omission therein, rectify sucherroror omission insuch manneras may be prescribed, and shall pay the taxand interest, if any, in ‘ acase thereisa short paymentof tax on account of such ' erroror omission, in the returnto befurnishedforsucli tax period: Furnishing details of outward supplies.

Provided that no rectification of error or omission in respect of the details furnished under sub-settion (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 therelevant annual return. whichever isearlier. Explanation:—For the purposes of this rChapter, the expression “details ofoutward supplies” shall include details of invoices, debit notes, credit notes and revised mvoxcesusuedin relation to outward supplies made during any tax period. . ‘ 38. (1) Everyregistered persongother than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions ofsection10. section or section 52, shall verify, validate. modifyor delete, ifrequir‘edthede'tailnelatingto outwardsuppliesand . credit ordebit notes communieated under sub-section (1) of section to prepare the details ofhis inward supplies and credit or debit notes and may include therein, the details of inward supplies andcredit or ' «debitnotesreceivedbyhiminrespectofmchsupplies ' » that have notbeen declaredbythesupplierundersub- ' section (1) of section 37. ' ‘I (2) EveryngisteredpersomotherthananlnpmService , ' Distributororanon-residenttaublepersonoraperson paying tax under the provisions ofsection 1:0,:section. or section52, shall furnish. eleetromllfithedetails ofinwardsuppliesoftaxablegoodsorservicesorboth, including inward supplies of goods or-services or both onwhich thetaxispayableou reversechu'gebasisunder , this Act and inward supplies of goods oriservices 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 TariflAct, 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 insuch form and manner as may be prescribed: _ Provided that the Commissionermay, for reasons to be recorded in writing. by. notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein; . ' Provided further that any extension of time limit notified by the Commissioner; of central tax'shall be deemed 'to be notified by theCommissioner. ' , .F .l. ll-lof inward supplies.

(3) The details of supplies modified, deleted or included by the recipientand furniShed Under sub-section (2)shall ' be communicatedto the supplier concerned in such mannerandwithinsuchtimeasmaybeprescribed. (4) The detailsof supplies modified, deletedorincluded by the recipient in the return furnished undersub-section (2) or sub-section (4) ofsection39shallbecommunicated tothe supplier concernedinsuchmannerand within such timeas may be prescribed. (5) Any registered person, who has furnished the details under sub-section (2) for any tax period andwhichhave remained unmatched under section orsection 43, » shalt, upon discovery of any error oromission therein, rrectifysuch error or omissionin the tax period during which such erro'ror omissionisnoticedinsuchmanner ‘asmaybeprescribed, andshall‘paythetaxandinterest, ”if any, in casethere is ashort payment oftaxon account of such erroror omission, in the return to be furnished forsuchtax period. Provided that norectificationof error or omission' in respect ofthe detailsfurnishedunder sub- section (2) shall beallowed after furnishing of the return undersection 39for the month of September following the endofthe financial year to which suchdetails pertain, ‘ orfurnishing ofthe relevant annual return, whicheverisearlier 39. (1) . Every registeredperson, otherthan an Input Service Distributor or a non-resident taxable person or a person "paying tax under the provisions ofsections 10, section bisection shall, for every calendarmonth or part thereof, furnish, insuchformand manner as may be prescribed, a return, electronically, ofinward and outward supplies of goods or services or both, input tax credit availed, tax payable. tax paid andother particulars as may beer on or before the twentieth day of themonth succeeding such calendar month orpart thereof. (2) A registered person paying taxunder the provisions of section’10 shall, for each quarter or part thereof,furnish, in suchformand manneras maybe prescribed, a return. electronically, of inward supplies of goods orservices or both, tax payable andtax paid within eighteendays after the endofsuch quarter. Worm

c» , (4) (5) (6) “ Every registered person required todeduct taxatsource under the provisions" of section. shall furnish, in suchform andmanneras may be‘prescribedt a return, electronically, for the monthin which such deductions have heen made within ten days alterthe end of such month. Every taxable personregistered asan Input Service Distributor shall, for , every calendar month or part thereof;filrnlshmsudifomandmannerasmayhe prescribed, a return, electronically, within thirteen days after theend of such month. Everyregistered non—resident taxable person shall, for every calendar month or part thereof,furnish, in such formandimnner as maybe prescribed, a return, electronically, within twentydays afterthe. end ofa calendar month or within seven days after the last day of the period of registration specified under sub-section(l) of section 27', whichever is earlier. The Commissioner may, for reasons tobe recorded in writing,.by notification. extend the time limit for furnishingthereturnsunderthissectionforsuchdaas ofregisteredpersonsasmaybespecifiedtherein: Providedthat any extension oftime limit notified by the Commissioner ofcentral taxshall bedeemed tobe notifiedby the Commissioner. ’ ‘ (7)} Everyregistered person, whois required tofurnish a return. under sub-section“) or sub-section (2) or sub-sectionfgilor sub-section (5); shall pay'to the I . Government thetax‘due as per such return not later (8) ,thanthelastdateonwhichheisrequiredtofiirnishsuch ' return. Every registered person who is required to furnish a returnunder sub-section (1) orsub-section (2) shall furnish a return for every tax period whether ornot any ‘ supplies of goods orservicesor both havebeen effected during such tax period.

40. Everyregisteredperson whohasmade outward supplies 1n ’ the period betweenthe date on which hebecame liable to; 41: 42., (9) Subject to the provisions oEsections and 38, if any registered person after furnishing a return undersub- section (1) or sub-section (2) sub section (3) or sub- section (4) orsub- section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by thetax authorities, heshall rectify such omission or ‘ incorrect particulars 1n the return tobe flirnished for the 3-? month or ‘qu‘arter, as the case may be, during which such "omission or incorrect particulars are noticed, sillject to payment of interest under thrs Adi;- “ ' Provided that no such rectrfication of any omission or incorrect particulars shallbe allowed after the due date for furnishing of return for themonthof September or second quarter following the end of thefinancial year, orthe actual date of furnishing ofrelevant annual return, whichever' is earlier (10) A registered person shall not be allowed to furnish a return for a tax period if the returnfor any of the previous tax penods hasnut been furmshed by him. registration tillthe date onwhich registration hasbeen granted shalldeclarethesameinthefirst return furnished by himafter grant of registration. (1) Every registered person shall, subject to suchconditions "(21‘ " (1) and restrictions as may be prescribedbe entitledto take crecbt of eligible input tax, as self assessed, 1nhisreturn ‘1 and such amount shall be credited ona provisional basis to hiselectronic credit ledger The creditreferredto in sub-section (lishallrbe. ut1115ed only for payment ofself-assessed output taxas per the return referred tointhe said subsection. _, 'lhe details of every inward supply furnished by a , registered person (hereafter 1n this section referred toas the “recipient ”) fora tax period shall, in such manner and within suchtime as may be prescribed bematched— (a) withthe correspgndmg details: of outward supply furnished M the corresponding registered ' person (hereafter in this section referred to as the “supplier” ) in his valid return for the same tax period or anypreceding tax period; FirstReturn. Claim of input tax creditand provisional acceptance thereof. Matching, reversaland reclaim of input tax ' credit.

of1975 of1975 (2) (3) (4) (5) (6) (7) (b) with the integrated goods and servicestax paid under section3 of the Customs’Tarifi‘ Act, in:\ « . respect of goods imported by him; and (c) for duplication of claims of input tan credit. _ The claimof input tax creditin respect of invoices or debit notes relating toinward supply that matchwith the details of corresponding outward supply orwith the integrated goods and services tax paid under section of the CustomsTariff Act, 1975in respect of goods [imported by himshall be finally accepted and such acceptance shall be communicated, in such manner as may be prescribed, to the recipient. ‘ Where the input tax credit claimed by a recipient in respect of an inward supply is in excessof 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 shallbe communicatedto bothsuch persons in such manneras may be prescribed. The duplication of claims of input tax credit shall be , communicated to the recipient insuch manner asmay be prescribed. 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 returnforthe monthin which discrepancy is comimmicated shall be addedto the output tax liability of the recipient, in such manner as may be prescribed, in his returnfor the month succeeding the month in which the discrepancy is communicated. ' The amount claimed as input tax credit thatis foundto bein excess on accountof duplication of claimsshall be added, to the output tax liability of the recipient in "his return for the monthin whichthe duplication is communicated. The recipient shall be eligible to reduce, from his output ‘ tax liabilityrthe aniount added under sub-section (5), it ; the supplier declares the details of the invoice or debit note inhis valid return withinthe time specified insub- section‘(9) of section 39.

(8) (9) Arecipient in whose output taxliability any amount has been added under sub-section (5) or sub-section (6), shall be liableto pay interest at therate specified under ‘ sub—section (1) of section50 onthe amount so added from the dateof availing ofcredit till the corresponding additions are made under thesaid subsections. Where any reduction in output tax liability is accepted under sub-section (7), theinterest paid undersub— section (8) shall be refunded tothe recipient by crediting the amount in the corresponding headof his electronic cash ledger in such manner as may be prescribed: Providedthat the amountof interestto be credited in any case shall‘not exwedthe amountof interest paid by the supplier. (10) The amount reduced fromthe output tax liability in (1) contraventionof 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 contraventiontakes place and such recipient shallbe liableto pay interest on the amountso added at the rate specified in sub-section (3) of section50. The detailsof every credit note relating to outward supply furnishedby a registered person (hereafter in this section‘referredtoas the “supplier”) for atax period shall, in such mannerand within such time as may be . prescribed, be matched- . (a) [With the corresponding reduction inthe claimfor ‘ input tax credit by the corresponding registered person (hereafter inthis section referredtoas the “recipient”) in hisvalid return for the same tax period or any subsequent tax period; and (b) for duplication of claims for reduction in output tax liability. , ‘ The claim for reduction in Output tax liability by the supplier that matches withthe corresponding reduction inthe claim for input tax credit by the recipient shall be finally acceptedand communicated, in such manner as may be prescribed, to the'supplier. Matching, reversal and reclaim of reductionin output tax liability.

(5) (6) (7) (8) 3(9). 92a Where the'reduction’of output tax liability in respect of Ward supplies exceeds the corresponding reduction ‘ -i‘uttheclaim for' input taxcreditioriéthe corresponding credit note isnotdeclared by the recipient in hisvalid returns; the discrepancy shall becommunieated to both 1;} I.such persons in such;manner as may be prescribed. 'Ihe duplication ofclaimsforreduction in output tax liability shallbe communicated tothe supplier' insuch manner as may be prescribed. The amount in respect ofwhich any discrepancy is communicated under subsection (3) and whichis not rectified by the recipient inhis valid i'eturnforthe monthin which discrepancy is communicated shall beadded tothe output tax liability of the supplier, in such manner as may be pracribed, inhisireturnforthe month succeedingthe monthinwhichthe discrepancy iscommunicated. Theamountinrespectofanyreductioninmitputtax liability thatis foundtobeon account ofduplication ofclaimsshallbeaddedtotheoutputtaxhabihtyof thesupplierinhisreturnforfliemonthinwhichsuch duplicationiscommunicated. ' 'Ihe supplier shallbe eligible to reduce, from his output liability theamountadded undersub—section (5) if the recipient declaresthedetailstthecredh'note'in his valid return within the time specified in sub-section (9) of section 39. A supplier in whose output tax liability any amounthas beenaddedundersub- section (5) or sub—section (6), shall be liable to pay interest at the rate specified under ’ sub-sectioh (1) of section 50in respect oftheamountso ' addedfromthedate of suchclaim for reduction inthe ‘ output tax liability tillthe Corresponding additionsare madeunderthesaid subsections. Where any reduction' in output tax liability is accepted under sub- section (7), the interest paid undersub- section (8) shallberefundedto the supplier bycrediting , the amount in the corresponding head of his electronic "f fcash ledger in such manner as may be prescfib¢d= Provided that the amount of interest to becredited in any case shallnoteticeed the amount of interest paid by the recipient.

(5) (6) (7) (8) 3(9). 92a Where the'reduction’of output tax liability in respect of Ward supplies exceeds the corresponding reduction ‘ -i‘uttheclaim for' input taxcreditioriéthe corresponding credit note isnotdeclared by the recipient in hisvalid returns; the discrepancy shall becommunieated to both 1;} I.such persons in such;manner as may be prescribed. 'Ihe duplication ofclaimsforreduction in output tax liability shallbe communicated tothe supplier' insuch manner as may be prescribed. The amount in respect ofwhich any discrepancy is communicated under subsection (3) and whichis not rectified by the recipient inhis valid i'eturnforthe monthin which discrepancy is communicated shall beadded tothe output tax liability of the supplier, in such manner as may be pracribed, inhisireturnforthe month succeedingthe monthinwhichthe discrepancy iscommunicated. Theamountinrespectofanyreductioninmitputtax liability thatis foundtobeon account ofduplication ofclaimsshallbeaddedtotheoutputtaxhabihtyof thesupplierinhisreturnforfliemonthinwhichsuch duplicationiscommunicated. ' 'Ihe supplier shallbe eligible to reduce, from his output liability theamountadded undersub—section (5) if the recipient declaresthedetailstthecredh'note'in his valid return within the time specified in sub-section (9) of section 39. A supplier in whose output tax liability any amounthas beenaddedundersub- section (5) or sub—section (6), shall be liable to pay interest at the rate specified under ’ sub-sectioh (1) of section 50in respect oftheamountso ' addedfromthedate of suchclaim for reduction inthe ‘ output tax liability tillthe Corresponding additionsare madeunderthesaid subsections. Where any reduction' in output tax liability is accepted under sub- section (7), the interest paid undersub- section (8) shallberefundedto the supplier bycrediting , the amount in the corresponding head of his electronic "f fcash ledger in such manner as may be prescfib¢d= Provided that the amount of interest to becredited in any case shallnoteticeed the amount of interest paid by the recipient.

45. 47. (10) The amount reduced from output tax liability in contraventionofthe provisions of sub-section (7), shall ‘be added to the outplrt tax liability ofthe supplier 1nhis > return for the mor'rth in which such contravention takes - placeand such suppligrshall be liableto pay intereston theamount so added at the rate specified in sub- section , (3) of section 50. ' . . (1) Everyregisteredperson, other than an Input Service Distributor, a person paying tax under section 51or section 52, a casual taxable person and a non-resident taxable person, shallfurnish an annual returnfor every financial year electronically' 1n such farmand manner " as may be prescribed on or before the thirty- -first day of i December following theend of Such financial year. v (‘2)! mEr/eryregistered person whois required to get his ‘ .accounts audited under sub-section (5) of section ‘ '3 shall furnish electromcally, the annual. return under sub-section (1) along with. the audited copy of the annual accountsanda reconciliation statement, reconciling the valueof supplies declared-in thereturn furnishedforthe financial year with the audited annual financial statement, andsuch other particulars as may be prescribed. , Every registered person who is required tofurnishareturn under sub-section (1) of section39 andwhose registration . has been cancelledshall furnisha finalreturnwithin three monthsof the date of cancellation ordateof cancellation order, whicheverrs later, m suchform andmanner as may be prescribed. Wherea registeredperson failstofurnish areturn under section 39, section44or section 45, a notice shall beissued requiring him to furnish suchreturnwithin fifteen days in such form andmanner as may be prescribed. *(1) Any registered person whofailsto furnish thedetails of , outward or inward suppliesrequired under section37 or section or returns required undersection39orsection by the due date shall pay a latefeeof onehundred ‘ rupees for every dayduring which such failurecontinues subject toa maximum amount offive thousand rupees. Annual return. Finalreturn. Noticeto return defaulters. Levy oflate fee.

. ’62 (2) Any registered person who fails to furnish the return _ required under section by the due date shall be liable to pay a latefee ,of one hundred rupees for every day during which such failure continues subject to a 3- maximum ofan amount calculated at a quarter per cent of his turnover fifiie’ ”State ' , . (1) '-Ihe manner of approval of goods and servicestax Goodsandscrvicesw practitioners, their eligibility conditions, duties and Pm‘imm- - obligations, mannerof 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 service tax practitioner to furnish the detailsof outward supplies under section 37, the details of inward supplies under section and the return under section 39or section 44°in such manneras may be prescribed. ( 3) Notwithstanding anything containedin sub-section (2), the responsibility for correctness of anyparticulars fiirnishedinthe return or other detailsfiledbythegoods and semces tax practitioners shall continue to rest with the registered person 0n whosebehafl'such return and detailsarefurniahed. r i

49. (2) _(l) ‘ CHAPTER-X PAYMENT OFTAX Eyery deposit made toWarastax,interest, penalty, fee or any otheramount by a;taxable person by internet banking or by using credit or debit cardsor National . Electronic Fund’I‘ransferor RealTm: Gross Settlement or by such other mode and subject to such conditions and restrmuonsasmaybeptescribedshaflbecreditedto the ,, electronic cash ledger of sugh person to be maintained‘ in such manneras may be prescribed, I‘Rg" The input tax credit as self-assessed m thereturn ofare glistered person shallbe creditedto his electronic credit ‘ .-.- ledges in accordance with section 41, to be maintained .«insuchniannerasmaybeprescribed. .. .; x The amount available inthe electroniccash ledger may - be used for making anypayment towards tax,interest, ‘ (4) - “penalty; feesor any other amount payable under the provisions of thisActorthe rulesmade thereunder' in , , such manner and subject to such conditions and within. ’ 'suCh time as may be preScribed. The ambunt availablein the electroniccredit ledger may beusedfor making any payment towards output tax under thisAct or under the Integrated Goodsand Sci-Vices TaxAct' in such manner and subject tosuch 5) Theammmtrofinput tax credit available inthe electronic creditledger ofthe registered person on account of- (a) integrated tax shall first beutilised towaras payment of integrated tax andthe amount remaining, if any, Payment of tax. (interest, Penalty amounts. maybeutihsedtowardsthepaymentofcentraltax',, = - andState tax. or asthe case may be, Union territory tax. in that order; _ ,. (b) thecentraltaxshallfirstbeutihsedtowardspayment ofcentral taxand the amount retraining. if any, may be utilised towards the payment of integrated 1‘ _'_ k m: l , ic)‘ :theState tax shall first be utilised towards payment ofStatetaxand the amount remaining, if any,may be utilised towards the payment of integrated tax; and other

(d)the Union territory tax shall first be utilised - towards payment of Union-gterritory tax and the amount-remaining, if any, may beutilised towards the payment of integrated tax; » , ' ' i (e) the central taxshall not'be utilised tom Payment (7) (8) ' ofState tax or Union territory tax; and i (f) the State tax orUnion '*‘territory~m:shall not be . , . utilised toWards payment ofcentral tax. ' The'balance in the3e1ectronic cash ledgerbr' electronic credit ledger after payment oftax. interesfipenalty, fee or any other amount payable under this Act "orthe rules made thereunder may be refunded inaccordance with the provisions of section 54._ ' _ . . An liabilities of ataxable person under this Act shall _ be recordedand maintained in anelectronic liability register insuchmanner as may be prescribed. Every taxable person shall discharge his tax and other .duesunderthisActortheruiesmadetheeeunderinthe following order, namely:— . I 3' (a) self~dssessedtax, and other dues: related to returns of previous tax periods; .3g (b). self-assessed tax, and other dues related to the t9). retumofthecurrenttaxperiod; '_ > (cl .‘anyjdth‘er amouht'payalile under this Act or the ' rules made thereunderincluding; the demand determined under section 73or section 74. ‘ Everypersonwho has paid the tax: on goods or services or bothunder thisActshall. unless the contrary is proved by him, bedeemed to have passed on the full incidence of such taxto the recipient of such goods or services or Explanations For the purposes ofthis SectiOn, (a) (b) the date ofcreditto the account of the Government in the authorised bank shall be'deemed to be thedate of the expression: ‘ ‘ _ (i) ““tax dues’imeans' thetax payable 'Sun‘der this Act and does not include interest, fee and penalty; and ' deposit-in the electrohic‘cash ledger. ' (ii) «other dues” meansjntezrest, Penalty, fee 01' any other amount payable under thisAct 61: the rules " made taste-$19“?- .- ' _,

50.. as) Every person whors liable to paytax in accordance with the provisions of this Actor therirles made thereunder, fails to pay thetaxor any part thereofto theGovernment within the period prescribed, shall for the period for » ,0 which the taxor any part thereof remains unpaid, pay , , . on his own, interest at such"i‘ate,,not exceeding eighteen ‘ , 3931, cents as may be notified bytheGovernment onthe _(2) (hereafter in this sectionreferredtoas “the deducto‘r”), todeduct , ’ (3) \ recommendations of the Cogncm; Z'Ihe interest under sub- section (1) shall becalculated in suchmanner as may be prescribed from the day .succeeding the day on which such taxwas dueto be _ Paid. , _ ,_ . - A taxable person who makesan undueor excessclaim of input tax credit under sub-section (10) ofsection or undue or excess reduction” in 3utput tax liability under sub- section (10) 3f section 43, shall pay interest ~on Such undue or excess claim or on such undueor excess reduction, asthe case may be, at such ratenot exceeding twenty- -four per cent,as may be notified J ' by the Government on the recommendationsof the (1) Council. Notwithstandinganything to the gontrary contained in this Act, the Government may mandate,- (a) a department or establishment ofthe Central Governmentor State Government; or , (b) local authority, or (c) Governmentalagencies; or (d) such persons or categoryofpersons asmaybe notified by the Government onthe recommendations ofthe Council. tax at the rateof one per cent from the payinent made orcreditedto the supplier (hereafter in thissection referredtoas“the deductee”) of taxable; goodsonservices or both, where the total valueof such supply, under a contract, exceeds two lakhand fifty thousand rupees: is differentfrom the State or. as the case may be Uniontemtorywof“ registration of the recipient. Providedthat no deductionshallbe madeifthelocationofthe supplier and theplace of supply rs in a §tate qt Union territory which Intereston delayed y;payment of tax. Tax deductionatsource.

ai-Explamztion: Forthe purpose ofdeductionof tax specified above, thevalue of supply shill be takenasthe amount excluding thetax indicatedin theinvoice (2) r. (3) a (4) “(5) :22?‘ it2‘ The amount deductedastaxunderthissectionshallbe ' paid tothe Gbfii’ninent by the deductorwithin ten days aftertheend of the month in which such deduction' is , made, in sucli manneras may be prescribed. shire deductdr shallfurnishtothe deducted a certificate I_.’\ ' ”3 mentioning therein the eontract value, rate of deduction, ‘ amount deducted, amount paid tothe Government . and suchother particulars insuch manneras may be . prescribed. e If any deductor fails to furnish tothededucteethe certificate, after dedusting the tax at source, within five days of crediting the amount so deducted to the ' Governinent, the deductor shall pay,byway ofalate fee; a sum of one hundred rupeesperday fi'om the day afterthe expiry of such five day period untilthefailureis rectified, subject toa maxinmm amountoffive thousand rupees. The deductee shall claim credit, in his electronic cash ledger, ofthetax deducted and reflected in thereturn of , the deductor furnished under sub-section (3) ofsection A ' 39, in such manner as may be prescribed. (6) (7) ,, {8) If any deductor fails to pay totheGovernmentthe amount deductedastax under sub-section (1), heshall pay interest in accordancewith the provisions of sub- section (1) of section 50, in additiontothe amount oftax _ deducted. The determinationofthe amountindefaultunder this section shall bemade' in the manner specified' insection '23 or section 74. The refund tothe deductororthe deductee; arismg on account ohm or erroneous deduction shah be dealt with in aceordance With the provisions of section 54: ,1: Pfofided that no refiind‘tothe deduCtor shallbe granted. if the amdiint deducted has been creditedto the electromc cash ledger of the deductee.

52. a) Notwithstandmg anything to the contrary contained in thisAct, emery electronic cogamerce operator (hereafter in ,this section;refeeied to as the “operator”), not being an agent: shall celleet. Mount calculated at such < rate not execedingunease: cent, as may be aetified on the recommen- myelitlie Council. of. the net value :Qfataxable supplies spade through it by other suppliers ‘ wherethe consideration with respect to such supplies is to be collected by the operator Explanation ~For the purposes of this sub-section, the ; “net value of taxable supplies”. shall mean the aggregate value of, taxable supplies of goods or services or both, other thawhervices notified under sub-section (5) of section 9, madeduringany month, by all registered persons through the operator reduced by the aggregate valueof taxable supplies returned to the suppliers timing the said month ' (2)The power to collect the amount specified in sub-section 71(1) shall be without prejudice to any other modeof X ” recovery from the operator. ‘ (3) ,(4) — if?) The amount collectedunder sub- section ( 1) shallbe paid to the Government by the operator withinten days after theend of the mqiith in which such collection is made,“ in such manner as may be prescribed Every operator who collects the amount specified in sub- section 11) Shall furnish a statement, electronically, iicontamingfile details of Outward supphes of goods for Services or ;both effected thrpugh it. including the V, supplies of goods or services or bOth returned through it, andthe amount collectedunder siib- Section (1) during a month, in such form and manneras may be prescribed, Within ten days after the end of such month Everyoperatorwho collects the amount specified in sub- section (1) shall fiirilish an annual statement, electronically, con " , i the details of outward supplies of goods or serVices, or both effected through it, including the sup hes (if g or services orboth ' returned thrbugh. if dthe amount colleCtéd under the i said sub-section during the financial year, in such form '6 and manner as may be prescribed, bef6r‘é the thirty first day of December following the end of such financial year. Collection oftax at source.

(6) If any operator after furnishing a statement under sub-section (’4) ‘discemrs ahyomiséitmi‘br incorrect particulars therein, otherthan asaieéultfi‘af scrutiny, audit, insp’éefion orenforcement activity by thetax auth’oi‘ities, heshall re'ctifysuch omission orincorrect ’ particulars' in themem‘to befurni'shed forthe month a during whieh such omisfieimr incorrect peificulars are , - nonced, subject to payment bf interest. s’s*specified in '2 sub- section (1) ofsectionSO' Providedthat nosuchrectification of any (mission or incorrect particulars shall heallowed alter the due datefojr flirtiilshihg ofstatement for the means: of September following theend of the finandahyear or theaetuiildate offurnishing ofthe relevantannual statement, whichever i§iétlrher = ‘ " "(7) The supplier who has supplied the'goods hr services orboththroughtheoperatorshahclaimcredihinhis electronic cash ledger, ofthe amount collected and reflectediiithe statementoftheoperatorfumishedunder sub-seetibn (4), in webmanner as maybe prescribed ' Will The details of supplies finished by every operator under ’ ‘ sub-section (4) shall bematchedwith the corresponding ’ ”details ofoutward Supplies furnished by the concerned iihder thisActin such manner and within suchtime as maybe prescribed. Where thedetailsbf- butwatd supplies furhished by the operator hither sub-section (4) do notmatch with the corresponding details furnished by the supplier under section 37, the discrepancy shall be c0mmunicated to both persohs in. such manner and within Suchtime as (10) ' may be prescribed The amount: in respect of which anydiscrepancy is «communicated under sub-section (9)and which' is not “ ' rectified by the sli pher in his valid return or the operator in his statement or the monthinwhich discrepancy' is ' commuted, shallbeadded to the putput tax liability ' 3f the said supplier, where the value of nutWard supplies furnished Hy the aperator is mare than the valueof , outward supplies furnishe hy the supplier, in his return (for the month succeeding the month in whichthe “ l ”discrepancy is communicatedainsuch manila as may be prescribed.

(11) (12) 69} line concerned supplier,’ inwhose output tax liability any amount hasbeen added under sub-section (10), shall pay the tax payable in respect ofsuch supply along with interest, at the rate specified undersub-section (1) of section 50on the amount so added fromthe date such tax was due till the date‘of‘d its payment. Any authority not belowthe rankof Deputy Commissioner may servea notice, eitherbefore or during thecourse of any proceedings under this Act, ' requiring the operator tofurnish suchdetails relating 'tO‘e— (a) supplies of goods or services or botheffected through such operator duringanyperiod; or ' (b) stock of ' goods held by the suppliers making supplies through such operator in the godowns or warehouses, by Whatevername called, managed by such operators and declared as additional places of business by such suppliers, as maybe specified In the notice. j Explanation: —For the purposes ofthis section, the expression. (13) (14) liveryoperator an whomanotice has been served under sub-section (12) shall furnishthe required information within fifteen workingdays of the dateof service ofsuch notice. Anyperson who fails to furnishthe information required by the noticeservedundersub-section (12) shall, Without prejudice to any actionthat may be taken under section 122, beliabletoa penalty which may extend to twenty five thousand rupees ‘concerned supplier’ shall mean the supplier of goods or services or both makingsupplies through the operator. 53. On utilisation of input tax credit availedunderthisActfor payment oftax duesunderthe Integrated Goods and Services Tax Act‘ in accordanceWith sub~section (5) of section 49, as reflectedinthe validreturnfurnished under spb-section (1) , ofsection 39, the amount collectedasStatetaxshallstand reduced by an amount equal to such creditsoutilisedand the StateGovernmentshall transferan amount equal tothe amount so reduced from the State tax account tothe integrated , taxaccount in suchmannerand within such time as may be prescribed. Transfer of input in credit.

460f1947 Max: 1‘ 54. (1) Anyperson dimming refund of any taxandinterest paidon suchtaxoranyotheramonntpaidbyhim may makean application before the expiry oftwo years from therelevant date' m mch Sorm and manner as may be prescribed: Providedthat a registered person, claiming refimd of any balance in the electronic cash ledger as per ash—section (6) of section49, may claim such refund inthereturn furnishedunder section39' msuchmanner as may be prescribed. (2) A specializedagency oftheUnited Nations Organization , «__, oranyMultilateralFmancialInstitutionandOrganization notified under the United Nations(Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person orclassof persons as notified under sectionSSeptitledtoarefimdoftax paid , : byitoninward suppliesofgoodsorservicesorboth, , maymakeanapphcafionforsuchrefiindinsuchform andmannerasmaybepresaibeibeforetheexpiryof' six months from thelast day ofthe quarter' inwhichsuch supplywasreceived. (3) Subject tothe“ provisions ofsub—section (1‘0),aregistered personmay claim refund of any unutilised input tax :‘creditatthe endotanytaxperiod: Provided that no refund of unutilised input tax creditshallbe allowedincases other than- (i)' zerorated supplies made Without payment of tax; (ii) ' wherethecredithasaccumulated on account ofrate of taxon inputs beinghig‘i‘ér than therate oftaxon outputsupplies (other than nil rated or fully exempt supplies), except supplies oF goods orservicesOr bothas may benotified on therecommendations of the Council. .- Provided fiirtherthat no refund of unutilised input tax credit shall beallowed” in cases wherethe goods exported out of India are subjected to exportduty; . Provided also that no refund ofiinput tax credit shall be allowed, if the supplier of goods or services or both avails of drawback or claims refund of the integrated tax paid on such supplies. (4) The application shallbe accompanied by— Refundoftax.

71‘ (a) such documentary evidence as may be prescribed , to establishthat a refund is due to the applicant; and i an (b) such documentaryw or other evidence (including the documents referred to in section 33) as the applicant may furnishtoestablishthat theamount oftax and interest, if any,paid on suchtaxor any other amount'paid in rélatibn to which suchrefund is claimedwas collected frnm, or paidby, him and the incidence of such taxand interest hadnotbeen passed on toany other person: ' ‘ Provided that where the amount claimedas refund' is lessthan twolakh rupees, it shallnot be necessary for the applicant to furnish any documentary and other evidences buthe may filea declaration, basedon the documentary orother evidences available with him, cettifying that the incidence ofsuch tax and interest had notbeen passed on if?) any other person. (5) If, on receipt of any such application, the proper oflicer' is satisfied that the whole or part oftheamountclaimedas refundis refundable, he may makean order accordingly randtheamountsodeterminedshallbecreditedtothe * Fund referred to“ insection 57. (6) Notwithstanding anything contained in sub-section (5), the proper officer may, inthecase of any claimfor refund on accountof export of goods or services orboth made byregistered persons, otherthansuch category . of- registered persons as may, be notified' in this behalf, frefund on a provisionahbasis, ninety per cent. ofthe gtotal amountso claimed, excludingthe amount of' input (7) (8) tax credit provisionally accepted in suchmannerand subject to such conditions, limitationsand safeguards as may be prescribedand thereaftermakean orderunder sub-section (5) for final settlement of the refund claim afterdue verification of documents furnished by the applicant The proper officer shallissue theorderundersub- section (5) within sixty days fromthe date of receipt of ; application complete in all respects. , . Notwithstanding anything contained' in sub-section (5), J the refundable amount shall,instead of being credited to the Fpnd, bepaid tothe applicant, if: such amount is * '7 relatableto —

(a) , refund of men inputs or input services used inthe ' V ‘ goods or services orboth which are exported out of _ (b)v refund ofunutilised input tax credit under sub— ‘Msection('3);: ‘.'_ (c) refundoftaxpaidonasupplywhichisnotprovid‘ed, , either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued; (d) refund of taxin pursuance ofsection 77; . (e). the tan and interest, if any, or any other amount paid by the applicant. ifhehad not passed on the incidence of such tax and interest to‘any other (f) the m or interest borne by 'Suchf’other class of applicants as the Government may, onthe H recommendations of the Council, by notification, (9) Natwithstandinganythingto the contrarycontained'in p anyjiidginenndeaeqorderordirectionoftheAppellate ‘Tribunalorfanycourtorinanyother provisions ofthis Act orthe rulesmadethereunda‘orinanyother law for fliefimebeingmforcenorefimdshallbemadeexcept inaecordancewiththeprovisiom of sub—section(8). ‘ (10) Where any refund is due under sub-Section (3) toa registered person Who has defaulted in furnishing any return or who is required to pay anytax, interest or penalty, which has not been stayed byany court, Tribunal or Appellate Authority by the specified date, the proper oficer may— . ’ ' , (a) withhold payment of refund due until the said person hasfurnished the return or paid the tax; interest or penalty, as the case may be; (b) deduct from therefund due, any tax, interest. ' penalty, feeor any other amount which the taxable person isliable to pay but which remains unpaid , . under this Act or under the existing law. Explanation ‘:'-Forthe purpoSes ofthis stib-section,‘the' expression “specified date”-shallimean the last date for filing an 2appeal under thisAct. - '

(l) (2) (ll) (12) n(1.3). ‘ (14) Wherean order giving rise toa refund isthe subject matterof an appeal orfurther proceedings or where any other proceedings under thisActis pending andthe » Commissioner is of the opinion that grant ofsuch refund is likely to adversely affect the revenue in thesaid appeal or other proceedings onaccount of malfeasance orfraud committed, he may, after giving the taxable person an opportunity of being heard, withhold therefund tillsuch time as he may determine Where a refund is withheldunder sub-section(11), the taxable person shall. notwithstandinganything contained in section 56, be entitled to interest atsuch rate not exceeding six per cent. as may be notifiedon the recommendationsofthe Council, if as a resultof the appeal or further proceedings hebecomesentitled to refund. , . Nomhstmdmg anything tothe contrary contained in this section, the amount of advance’tax depositedby a casual taxable person or a non-residenttaxable person ’ under suB~seCtion (2) of section 27, shallnotberefunded unlesssirchpersonhasinrespectoftheentireperiod .torwhidithecertificateofregistrationgrantedtohim had remained' an force, furnished all the returns required under section 39. Notwithstandinganything containedinthis section, no refund‘under sub—section (5) orsub-section (6) shall be paid to an applicant, if the amount isless thanone thousaa’d rupees. , Explanation:- Forthe purposes-of this section;— “retaind” includes refundof tax on inputs or input services: used in the goods orservicesorbothwhich are exported out of India, orrefundoftaxonthe supply of goods regarded as deemed exports, orrefundofunutilised input tax credit as . provided under sub-section (3). Hrelevant'date means - (a) inthecase of goodsexported out of India wherearefund ,of tax paid isavailable in respect of inputs or input ; services used insuch goods,— (i) if the goods are exportedby sea or air, the dateon whichthe ship or the aircraft in which such goods are loaded. leaves India; or ’

(ii)? ifthe goods are exported by land, the dateonwhich such goods pass the frontier; or 1’ (iii) ifthe goods are exported bypost, the date of (b) (c) ‘ despatch of goods by the Post Ofice concerned toa place outside Tndin; _ inthe case of supply of goods regarded as deemed exports where a refundof tax paid' is available' in respect ofthegoodnthedateonwhich-thereturnrelatingto ' such deemed exports is filed; in the case ofservices exportedlnut of India where a refundof tax paid is available in respect 0t inputs or input services used' insuch services, thedate of-— (i) receipt of payment in convertible foreign exchange, wherethe supply Of services had been Completed q prior to the receipt of such payment, or . (ii) issue of mvome, where payment fiirtheservices had to (e) (f) (8) (hi been received' 1n advance priorto the date of' issue of the invoice; in case wherethe tax becomesrefundable as a consequence of judgment, decree, order or direction of ' I the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction; in the case of refund of unutilised input taxcredit under sub-section (3), the end ofthe financial year in which such claim for refund arises; ' ‘ inthecasewhere tax is paidprovisionally under this Act or therules made thereunder, the date of adjustment of taxafter the finalassessment thereof; inthecase ofa person, other than the supplier, thedate of receipt of goods orservices or both by such person; and in any other case,the'date of payment pf tax.

460f1947 55. The Government may, on the recommendations of the Council, bynotification, specify any specialized agency of the United Nations Organizatibn or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities)Act, 1947,Consulate or Embassy of foreign countries Many other person Or class of Vpersons as may be Specified in this behalf, who shall, subject to such conditions and restrictions asmaybe prescribed, be entitled to claima refund of taxes paid on tliéiiibtified supplies ofgoods or services or both received by them? ' 56. If any tax ordered to be refunded under sub—section (5) of section to any applicant is not refunded within sixty‘ days from the date of receipt of application under sub-section (1) of that section, interest at suchrate not exceeding six per cent. as may be specified in the notification issued by the Government on the recommendationsof the Council shall be payable in ' respect of such refund from the date immediately afterthe expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax: Provided that where any claim of refund arises frOm an order passed by an adjudicafing authority or Appellate Authority or Appellate Tribunalor Court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order,interest at such rate not exceeding nine per cent.as may be notified on the recommendations 'of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the dateof receipt of application till the dateof refund Explanation:~ For the purposes of this section, where any orderof refund is made by an Appellate Authority, Appellate Tribunal or any court against an order of the proper oflicer under sub-section (5) of section 54, the order passed by the Appellate Authority, Appellate , Tribunal orby the court shall be deemed to be an order passed under the said sub~section (S). ' 57. ’lhe Government shall constitutea Fund, to be called the Consumer Welfare Fund and there shallbe credited tothe Fund,— - (a) the amount of tax referredtoin sub—section (5),of ‘ section 54; . . (b) any income frominvestment of the amount credited to the Fund; and . (c) such other monies received by it, in such manneras may be prescribed. Refimdincertainmes. Interest on delayed refunds.

(l) (2)1 All sums credited to theFund shall beutilised by the Government forthe welfareof the consumersinsuch manner as may be prescribed. .- - The Government orthe authority specified by: itshall maintainproperanduseparateaccountandotherrelevant recordsinrelationtotheFundandprepmanan‘nual statement of accounts insuch formas maybe prescribed inconsultation with the Compnnller and Auditor-' General of India.