GST Law section wise Full detail
The Central Goods and Services Tax Act
CHAPTER I - PRELIMINARY
CHAPTER II - ADMINISTRATION
CHAPTER III - LEVY AND COLLECTION OF TAX
CHAPTER IV - TIME AND VALUE OF SUPPLY
CHAPTER V - INPUT TAX CREDIT
CHAPTER VI - REGISTRATION
CHAPTER VII - TAX INVOICE, CREDIT AND DEBIT NOTES
CHAPTER VIII - ACCOUNTS AND RECORDS
CHAPTER IX - RETURNS
CHAPTER X - PAYMENT OF TAX
CHAPTER XI - REFUNDS
CHAPTER XII - ASSESSMENT
CHAPTER XIII - AUDIT
CHAPTER XIV - INSPECTION, SEARCH, SEIZURE AND ARREST
CHAPTER XV - DEMANDS AND RECOVERY
CHAPTER XVI - LIABILITY TO PAY IN CERTAIN CASES
CHAPTER XVII - ADVANCE RULING
CHAPTER XVIII - APPEALS AND REVISION
CHAPTER XIX - OFFENCES AND PENALTIES
CHAPTER XX - TRANSITIONAL PROVISIONS
CHAPTER XXI - MISCELLANEOUS
SCHEDULE I - [See section 7]
SCHEDULE II - [See section 7]
SCHEDULE III - [See section 7]
12th
April, 2017
The
Central Goods and Services Tax Act
- CHAPTER I - PRELIMINARY
1. Short title, extent and commencement. |
Provided that different dates may be appointed for
different provisions of this Act and any reference in any such provision to
the commencement of this Act shall be construed as a reference to the coming
into force of that provision. |
2. Definitions. |
(1) “actionable claim” shall have the same meaning as
assigned to it in section 3 of the Transfer of Property Act, 1882; Ø by
own labour, or Ø by
the labour of family, or Ø by
servants on wages payable in cash or kind or by hired labour under personal
supervision or the personal supervision of any member of the family; |
(9) “Appellate Tribunal” means the Goods and Services Tax
Appellate Tribunal constituted under section 109; |
(17) “business” includes–– Ø any
trade, commerce, manufacture, profession, vocation, adventure, wager or any
other similar activity, whether or not it is for a pecuniary benefit; Ø any
activity or transaction in connection with or incidental or ancillary to
sub-clause (a); Ø any
activity or transaction in the nature of sub-clause (a), whether or not there
is volume, frequency, continuity or regularity of such transaction; Ø supply
or acquisition of goods including capital goods and services in connection
with commencement or closure of business; Ø provision
by a club, association, society, or any such body (for a subscription or any
other consideration) of the facilities or benefits to its members; Ø admission,
for a consideration, of persons to any premises; Ø services
supplied by a person as the holder of an office which has been accepted by
him in the course or furtherance of his trade, profession or vocation; Ø services
provided by a race club by way of totalisator or a licence to book maker in
such club ; and Ø any
activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities; |
(18) “business vertical” means a distinguishable
component of an enterprise that is engaged in the supply of individual goods
or services or a group of related goods or services which is subject to risks
and returns that are different from those of the other business verticals. |
Explanation.––For
the purposes of this clause, factors that should be considered in determining
whether goods or services are related include–– |
Ø the
nature of the goods or services; Ø the
nature of the production processes; Ø the
type or class of customers for the goods or services; Ø the
methods used to distribute the goods or supply of services; and Ø the
nature of regulatory environment (wherever applicable), including banking,
insurance, or public utilities; |
(19) “capital goods” means goods, the value of which is
capitalised in the books of account of the person claiming the input tax
credit and which are used or intended to be used in the course or furtherance
of business; |
Illustration.— Where goods are packed and transported
with insurance, the supply of goods, packing materials, transport and
insurance is a composite supply and supply of goods is a principal supply; |
(31) “consideration” in relation to the supply of goods
or services or both includes–– Ø any
payment made or to be made, whether in money or otherwise, in respect of, in
response to, or for the inducement of, the supply of goods or services or both,
whether by the recipient or by any other person but shall not include any
subsidy given by the Central Government or a State Government; Ø the
monetary value of any act or forbearance, in respect of, in response to, or
for the inducement of, the supply of goods or services or both, whether by
the recipient or by any other person but shall not include any subsidy given
by the Central Government or a State Government: |
Provided that a deposit given in respect of the supply of
goods or services or both shall not be considered as payment made for such
supply unless the supplier applies such deposit as consideration for the said
supply; |
(32) “continuous supply of goods” means a supply of goods
which is provided, or agreed to be provided, continuously or on recurrent
basis, under a contract, whether or not by means of a wire, cable, pipeline
or other conduit, and for which the supplier invoices the recipient on a
regular or periodic basis and includes supply of such goods as the Government
may, subject to such conditions, as it may, by notification, specify; |
(49) “family” means,–– |
(50) “fixed establishment” means a place (other than the
registered place of business) which is characterised by a sufficient degree
of permanence and suitable structure in terms of human and technical
resources to supply services, or to receive and use services for its own
needs; |
(51) “Fund” means the Consumer Welfare Fund established
under section 57; |
(62) “input tax” in relation to a registered person,
means the central tax, State tax, integrated tax or Union territory tax
charged on any supply of goods or services or both made to him and includes— Ø the
integrated goods and services tax charged on import of goods; Ø the
tax payable under the provisions of sub-sections (3) and (4) of section 9; Ø the
tax payable under the provisions of sub-sections (3) and (4) of section 5 of
the Integrated Goods and Services Tax Act; Ø the
tax payable under the provisions of sub-sections (3) and (4) of section 9 of
the respective State Goods and Services Tax Act; or Ø the
tax payable under the provisions of sub-sections (3) and (4) of section 7 of
the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition
levy; (63) “input tax credit” means the credit of input tax; |
(69) “local authority” means–– Ø a
“Panchayat” as defined in clause (d) of article 243 of the Constitution; Ø a
“Municipality” as defined in clause (e) of article 243P of the Constitution; Ø a
Municipal Committee, a Zilla Parishad, a District Board, and any other
authority legally entitled to, or entrusted by the Central Government or any
State Government with the control or management of a municipal or local fund; Ø a
Cantonment Board as defined in section 3 of the Cantonments Act, 2006; Ø a
Regional Council or a District Council constituted under the Sixth Schedule
to the Constitution; Ø a
Development Board constituted under article 371 of the Constitution; or Ø a
Regional Council constituted under article 371A of the Constitution; |
(70) “location of the recipient of services” means,— Ø where
a supply is received at a place of business for which the registration has
been obtained, the location of such place of business; Ø where
a supply is received at a place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the
location of such fixed establishment; Ø where
a supply is received at more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most
directly concerned with the receipt of the supply; and Ø in
absence of such places, the location of the usual place of residence of the
recipient; |
(71) “location of the supplier of services” means,— Ø where
a supply is made from a place of business for which the registration has been
obtained, the location of such place of business; Ø where
a supply is made from a place other than the place of business for which
registration has been obtained (a fixed establishment elsewhere), the
location of such fixed establishment; Ø where
a supply is made from more than one establishment, whether the place of
business or fixed establishment, the location of the establishment most
directly concerned with the provisions of the supply; and Ø in
absence of such places, the location of the usual place of residence of the
supplier; |
(72) “manufacture” means processing of raw material or
inputs in any manner that results in emergence of a new product having a
distinct name, character and use and the term “manufacturer” shall be
construed accordingly; |
Illustration.— A supply of a package consisting of canned
foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices
when supplied for a single price is a mixed supply. Each of these items can
be supplied separately and is not dependent on any other. It shall not be a
mixed supply if these items are supplied separately; |
(75) “money” means the Indian legal tender or any foreign
currency, cheque, promissory note, bill of exchange, letter of credit, draft,
pay order, traveller cheque, money order, postal or electronic remittance or
any other instrument recognised by the Reserve Bank of India when used as a
consideration to settle an obligation or exchange with Indian legal tender of
another denomination but shall not include any currency that is held for its
numismatic value; |
(84) “person” includes— Ø an
individual; Ø a
Hindu Undivided Family; Ø a
company; Ø a
firm; Ø a
Limited Liability Partnership; Ø an
association of persons or a body of individuals, whether incorporated or not,
in India or outside India; Ø any
corporation established by or under any Central Act, State Act or Provincial
Act or a Government company as defined in clause (45) of section 2 of the
Companies Act, 2013; Ø any
body corporate incorporated by or under the laws of a country outside India; Ø )
a co-operative society registered under any law relating to co-operative
societies; Ø a
local authority; Ø Central
Government or a State Government; Ø society
as defined under the Societies Registration Act, 1860; Ø trust;
and Ø every
artificial juridical person, not falling within any of the above; |
(85) “place of business” includes–– Ø a
place from where the business is ordinarily carried on, and includes a
warehouse, a godown or any other place where a taxable person stores his
goods, supplies or receives goods or services or both; or Ø a
place where a taxable person maintains his books of account; or Ø a
place where a taxable person is engaged in business through an agent, by
whatever name called; Ø “place
of supply” means the place of supply as referred to in Chapter V of the
Integrated Goods and Services Tax Act; Ø “prescribed”
means prescribed by rules made under this Act on the recommendations of the
Council; Ø “principal”
means a person on whose behalf an agent carries on the business of supply or
receipt of goods or services or both; Ø “principal
place of business” means the place of business specified as the principal
place of business in the certificate of registration; Ø “principal
supply” means the supply of goods or services which constitutes the
predominant element of a composite supply and to which any other supply
forming part of that composite supply is ancillary; Ø “proper
officer” in relation to any function to be performed under this Act, means
the Commissioner or the officer of the central tax who is assigned that
function by the Commissioner in the Board; Ø “quarter”
shall mean a period comprising three consecutive calendar months, ending on
the last day of March, June, September and December of a calendar year; |
“recipient” of supply of goods or services or both,
means— Ø where
a consideration is payable for the supply of goods or services or both, the
person who is liable to pay that consideration; Ø where
no consideration is payable for the supply of goods, the person to whom the
goods are delivered or made available, or to whom possession or use of the
goods is given or made available; and Ø where
no consideration is payable for the supply of a service, the person to whom
the service is rendered, and any reference to a person to whom a supply is made
shall be construed as a reference to the recipient of the supply and shall
include an agent acting as such on behalf of the recipient in relation to the
goods or services or both supplied; |
(94) “registered person” means a person who is registered
under section 25 but does not include a person having a Unique Identity
Number; Ø despatch
of the goods for delivery by the supplier thereof or by any other person
acting on behalf of such supplier; or Ø collection
of the goods by the recipient thereof or by any other person acting on behalf
of such recipient; |
(97) “return” means any return prescribed or otherwise
required to be furnished by or under this Act or the rules made thereunder; |
(113) “usual place of residence” means–– Ø in
case of an individual, the place where he ordinarily resides; Ø in
other cases, the place where the person is incorporated or otherwise legally
constituted; |
(114) “Union territory” means the territory of— Ø the
Andaman and Nicobar Islands; Ø Lakshadweep; Ø Dadra
and Nagar Haveli; Ø Daman
and Diu; Ø Chandigarh;
and Ø other
territory. |
Explanation.––For
the purposes of this Act, each of the territories specified in sub-clauses
(a) to (f) shall be considered to be a separate Union territory; |
(115) “Union territory tax” means the Union territory
goods and services tax levied under the Union Territory Goods and Services
Tax Act; |
- CHAPTER II - ADMINISTRATION
3. Officers under this Act. Ø Principal
Chief Commissioners of Central Tax or Principal Directors General of Central
Tax Ø Chief
Commissioners of Central Tax or Directors General of Central Tax, Ø Principal
Commissioners of Central Tax or Principal Additional Directors General of
Central Tax Ø Commissioners
of Central Tax or Additional Directors General of Central Tax Ø Additional
Commissioners of Central Tax or Additional Directors of Central Tax Ø Joint
Commissioners of Central Tax or Joint Directors of Central Tax, Ø Deputy
Commissioners of Central Tax or Deputy Directors of Central Tax, Ø Assistant
Commissioners of Central Tax or Assistant Directors of Central Tax, and Ø any
other class of officers as it may deem fit: |
Provided that the officers appointed under the Central
Excise Act, 1944 shall be deemed to be the officers appointed under the
provisions of this Act. |
4. Appointment of officers. |
5. Powers of officers. |
6. Authorisation of officers of State tax or Union
territory tax as proper officer in certain circumstances. Ø where
any proper officer issues an order under this Act, he shall also issue an
order under the State Goods and Services Tax Act or the Union Territory Goods
and Services Tax Act, as authorised by the State Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, as the case may be, under
intimation to the jurisdictional officer of State tax or Union territory tax; Ø where
a proper officer under the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act has initiated any proceedings on a
subject matter, no proceedings shall be initiated by the proper officer under
this Act on the same subject matter. |
(3) Any proceedings for rectification, appeal and
revision, wherever applicable, of any order passed by an officer appointed
under this Act shall not lie before an officer appointed under the State
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act. |
- CHAPTER III - LEVY AND COLLECTION OF TAX
7. Scope of supply. Ø all
forms of supply of goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or agreed to be made for a
consideration by a person in the course or furtherance of business; Ø the
activities specified in Schedule I, made or agreed to be made without a
consideration; and Ø the
activities to be treated as supply of goods or supply of services as referred
to in Schedule II. |
(2) Notwithstanding anything contained in sub-section
(1),–– Ø activities
or transactions specified in Schedule III; or Ø such
activities or transactions undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities, as may be notified by the Government on the recommendations of
the Council, shall be treated neither as a supply of goods nor a
supply of services. |
(3) Subject to the provisions of sub-sections (1) and
(2), the Government may, on the recommendations of the Council, specify, by
notification, the transactions that are to be treated as— Ø a
supply of goods and not as a supply of services; or Ø a
supply of services and not as a supply of goods. |
8. Tax liability on composite and mixed supplies. Ø a
composite supply comprising two or more supplies, one of which is a principal
supply, shall be treated as a supply of such principal supply; and Ø a
mixed supply comprising two or more supplies shall be treated as a supply of
that particular supply which attracts the highest rate of tax. |
9. Levy and collection. |
Provided that where an electronic commerce operator does
not have a physical presence in the taxable territory, any person
representing such electronic commerce operator for any purpose in the taxable
territory shall be liable to pay tax: |
Provided further that where an electronic commerce
operator does not have a physical presence in the taxable territory and also
he does not have a representative in the said territory, such electronic
commerce operator shall appoint a person in the taxable territory for the
purpose of paying tax and such person shall be liable to pay tax. |
10. Composition levy. Ø one
per cent. of the turnover in State or turnover in Union territory in case of
a manufacturer, Ø two
and a half per cent. of the turnover in State or turnover in Union territory
in case of persons engaged in making supplies referred to in clause (b) of
paragraph 6 of Schedule II, and Ø half
per cent. of the turnover in State or turnover in Union territory in case of
other suppliers, subject to such conditions and restrictions as may be
prescribed: |
(Provided that the Government may, by notification,
increase the said limit of fifty lakh rupees to such higher amount, not
exceeding one crore rupees, as may be recommended by the Council. |
(2) The registered person shall be eligible to opt under
sub-section (1), if:— Ø he
is not engaged in the supply of services other than supplies referred to in
clause (b) of paragraph 6 of Schedule II; Ø he
is not engaged in making any supply of goods which are not leviable to tax
under this Act; Ø he
is not engaged in making any inter-State outward supplies of goods; Ø he
is not engaged in making any supply of goods through an electronic commerce
operator who is required to collect tax at source under section 52; and Ø he
is not a manufacturer of such goods as may be notified by the Government on
the recommendations of the Council: |
Provided that where more than one registered persons are
having the same Permanent Account Number (issued under the Income-tax Act,
1961), the registered person shall not be eligible to opt for the scheme
under sub-section (1) unless all such registered persons opt to pay tax under
that sub-section. |
(3) The option availed of by a registered person under
sub-section (1) shall lapse with effect from the day on which his aggregate
turnover during a financial year exceeds the limit specified under
sub-section (1). |
11. Power to grant exemption from tax. |
(1) Where the Government is satisfied that it is
necessary in the public interest so to do, it may, on the recommendations of
the Council, by notification, exempt generally, either absolutely or subject
to such conditions as may be specified therein, goods or services or both of
any specified description from the whole or any part of the tax leviable
thereon with effect from such date as may be specified in such notification. |
Explanation.–– For the purposes of
this section, where an exemption in respect of any goods or services or both
from the whole or part of the tax leviable thereon has been granted
absolutely, the registered person supplying such goods or services or both
shall not collect the tax, in excess of the effective rate, on such supply of
goods or services or both. |
- CHAPTER IV - TIME AND VALUE OF SUPPLY
12. Time of supply of goods. |
(2) The time of supply of goods shall be the earlier of
the following dates, namely:— Ø the
date of issue of invoice by the supplier or the last date on which he is
required, under sub-section (1) of section 31, to issue the invoice with
respect to the supply; or Ø the
date on which the supplier receives the payment with respect to the supply: |
Provided that where the supplier of taxable goods
receives an amount up to one thousand rupees in excess of the amount
indicated in the tax invoice, the time of supply to the extent of such excess
amount shall, at the option of the said supplier, be the date of issue of
invoice in respect of such excess amount. |
Explanation 1.––
For the purposes of clauses (a) and (b), “supply” shall be deemed to have
been made to the extent it is covered by the invoice or, as the case may be,
the payment. |
Explanation 2.–– For the purposes of
clause (b), “the date on which the supplier receives the payment” shall be
the date on which the payment is entered in his books of account or the date
on which the payment is credited to his bank account, whichever is earlier. |
(3) In case of supplies in respect of which tax is paid
or liable to be paid on reverse charge basis, the time of supply shall be the
earliest of the following dates, namely:— Ø the
date of the receipt of goods; or Ø the
date of payment as entered in the books of account of the recipient or the
date on which the payment is debited in his bank account, whichever is
earlier; or Ø the
date immediately following thirty days from the date of issue of invoice or
any other document, by whatever name called, in lieu thereof by the supplier: |
Provided that where it is not possible to determine the
time of supply under clause (a) or clause (b) or clause (c), the time of
supply shall be the date of entry in the books of account of the recipient of
supply. |
(4) In case of supply of vouchers by a supplier, the time
of supply shall be— Ø the
date of issue of voucher, if the supply is identifiable at that point; or Ø the
date of redemption of voucher, in all other cases. |
(5) Where it is not possible to determine the time of
supply under the provisions of sub-section (2) or sub-section (3) or
sub-section (4), the time of supply shall–– Ø in
a case where a periodical return has to be filed, be the date on which such
return is to be filed; or Ø in
any other case, be the date on which the tax is paid. |
(6) The time of supply to the extent it relates to an
addition in the value of supply by way of interest, late fee or penalty for
delayed payment of any consideration shall be the date on which the supplier
receives such addition in value. |
13. Time of supply of services. Ø the
date of issue of invoice by the supplier, if the invoice is issued within the
period prescribed under sub-section (2) of section 31 or the date of receipt
of payment, whichever is earlier; or Ø the
date of provision of service, if the invoice is not issued within the period
prescribed under sub-section (2) of section 31 or the date of receipt of
payment, whichever is earlier; or Ø the
date on which the recipient shows the receipt of services in his books of
account, in a case where the provisions of clause (a) or clause (b) do not
apply: |
Provided that where the supplier of taxable service
receives an amount up to one thousand rupees in excess of the amount
indicated in the tax invoice, the time of supply to the extent of such excess
amount shall, at the option of the said supplier, be the date of issue of
invoice relating to such excess amount |
Explanation.–– For the purposes of
clauses (a) and (b)–– |
(3) In case of supplies in respect of which tax is paid
or liable to be paid on reverse charge basis, the time of supply shall be the
earlier of the following dates, namely:–– Ø the
date of payment as entered in the books of account of the recipient or the
date on which the payment is debited in his bank account, whichever is
earlier; or Ø the
date immediately following sixty days from the date of issue of invoice or
any other document, by whatever name called, in lieu thereof by the supplier: |
Provided that where it is not possible to determine the
time of supply under clause (a) or clause (b), the time of supply shall be
the date of entry in the books of account of the recipient of supply: |
Provided further that in case of supply by associated
enterprises, where the supplier of service is located outside India, the time
of supply shall be the date of entry in the books of account of the recipient
of supply or the date of payment, whichever is earlier. |
(4) In case of supply of vouchers by a supplier, the time
of supply shall be–– Ø the
date of issue of voucher, if the supply is identifiable at that point; or Ø the
date of redemption of voucher, in all other cases. |
(5) Where it is not possible to determine the time of
supply under the provisions of sub-section (2) or sub-section (3) or
sub-section (4), the time of supply shall–– Ø in
a case where a periodical return has to be filed, be the date on which such
return is to be filed; or Ø in
any other case, be the date on which the tax is paid.
|
14. Change in rate of tax in respect of supply of goods
or services. Ø in
case the goods or services or both have been supplied before the change in
rate of tax,–– Ø in
case the goods or services or both have been supplied after the change in
rate of tax,–– |
Provided that the date of receipt of payment shall be the
date of credit in the bank account if such credit in the bank account is
after four working days from the date of change in the rate of tax |
Explanation.–– For the purposes of
this section, “the date of receipt of payment” shall be the date on which the
payment is entered in the books of account of the supplier or the date on
which the payment is credited to his bank account, whichever is earlier. |
15. Value of taxable supply Ø any
taxes, duties, cesses, fees and charges levied under any law for the time
being in force other than this Act, the State Goods and Services Tax Act, the
Union Territory Goods and Services Tax Act and the Goods and Services Tax
(Compensation to States) Act, if charged separately by the supplier; Ø any
amount that the supplier is liable to pay in relation to such supply but
which has been incurred by the recipient of the supply and not included in
the price actually paid or payable for the goods or services or both; Ø incidental
expenses, including commission and packing, charged by the supplier to the
recipient of a supply and any amount charged for anything done by the
supplier in respect of the supply of goods or services or both at the time
of, or before delivery of goods or supply of services; Ø interest
or late fee or penalty for delayed payment of any consideration for any
supply; and Ø subsidies
directly linked to the price excluding subsidies provided by the Central
Government and State Governments. |
Explanation.–– For the purposes of
this sub-section, the amount of subsidy shall be included in the value of
supply of the supplier who receives the subsidy. |
(3) The value of the supply shall not include any
discount which is given–– Ø before
or at the time of the supply if such discount has been duly recorded in the
invoice issued in respect of such supply; and Ø after
the supply has been effected, if— |
(4) Where the value of the supply of goods or services or
both cannot be determined under sub-section (1), the same shall be determined
in such manner as may be prescribed. |
Explanation.—
For the purposes of this Act,–– Ø persons
shall be deemed to be “related persons” if–– Ø the
term “person” also includes legal persons; Ø persons
who are associated in the business of one another in that one is the sole
agent or sole distributor or sole concessionaire, howsoever described, of the
other, shall be deemed to be related. |
- CHAPTER V - INPUT TAX CREDIT
16. Eligibility and conditions for taking input tax
credit. |
(2) Notwithstanding anything contained in this section,
no registered person shall be entitled to the credit of any input tax in
respect of any supply of goods or services or both to him unless,–– Ø he is
in possession of a tax invoice or debit note issued by a supplier registered
under this Act, or such other tax paying documents as may be prescribed; Ø he has
received the goods or services or both Ø Explanation.-
For the purposes of this clause, it shall be deemed that the registered
person has received the goods where the goods are delivered by the supplier
to a recipient or any other person on the direction of such registered
person, whether acting as an agent or otherwise, before or during movement of
goods, either by way of transfer of documents of title to goods or otherwise; Ø subject
to the provisions of section 41, the tax charged in respect of such supply
has been actually paid to the Government, either in cash or through
utilisation of input tax credit admissible in respect of the said supply; and Ø he has
furnished the return under section 39: |
Provided that where the goods against an invoice are
received in lots or instalments, the registered person shall be entitled to
take credit upon receipt of the last lot or instalment: |
Provided further that where a recipient fails to pay to
the supplier of goods or services or both, other than the supplies on which
tax is payable on reverse charge basis, the amount towards the value of
supply along with tax payable thereon within a period of one hundred and
eighty days from the date of issue of invoice by the supplier, an amount
equal to the input tax credit availed by the recipient shall be added to his
output tax liability, along with interest thereon, in such manner as may be
prescribed: |
Provided also that the recipient shall be entitled to
avail of the credit of input tax on payment made by him of the amount towards
the value of supply of goods or services or both along with tax payable
thereon. |
(3) Where the registered person has claimed depreciation
on the tax component of the cost of capital goods and plant and machinery
under the provisions of the Income-tax Act, 1961, the input tax credit on the
said tax component shall not be allowed. |
17. Apportionment of credit and blocked credits. |
Provided that the option once exercised shall not be
withdrawn during the remaining part of the financial year: |
Provided further that the restriction of fifty per cent.
shall not apply to the tax paid on supplies made by one registered person to
another registered person having the same Permanent Account Number |
(5) Notwithstanding anything contained in sub-section (1)
of section 16 and subsection (1) of section 18, input tax credit shall not be
available in respect of the following, namely:— Ø motor
vehicles and other conveyances except when they are used–– Ø (b)
the following supply of goods or services or both— Ø works
contract services when supplied for construction of an immovable property
(other than plant and machinery) except where it is an input service for
further supply of works contract service; Ø goods
or services 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 used in the course or
furtherance of business. Ø Explanation.––
For the purposes of clauses (c) and (d), the expression “construction”
includes re-construction, renovation, additions or alterations or repairs, to
the extent of capitalisation, to the said immovable property; Ø goods
or services or both on which tax has been paid under section 10; Ø goods
or services or both received by a non-resident taxable person except on goods
imported by him; Ø goods
or services or both used for personal consumption; Ø goods
lost, stolen, destroyed, written off or disposed of by way of gift or free
samples; and Ø any
tax paid in accordance with the provisions of sections 74, 129 and 130. (6) The Government may prescribe the manner in which the
credit referred to in sub-sections (1) and (2) may be attributed. |
Explanation.–– For the purposes of
this Chapter and Chapter VI, the expression “plant and machinery” means
apparatus, equipment, and machinery fixed to earth by foundation or
structural support that are used for making outward supply of goods or
services or both and includes such foundation and structural supports but
excludes— |
18. Availability of credit in special circumstances. Ø a
person who has applied for registration under this Act within thirty days
from the date on which he becomes liable to registration and has been granted
such registration shall be entitled to take credit of input tax in respect of
inputs held in stock and inputs contained in semi-finished or finished goods
held in stock on the day immediately preceding the date from which he becomes
liable to pay tax under the provisions of this Act; Ø a
person who takes registration under sub-section (3) of section 25 shall be
entitled to take credit of input tax in respect of inputs held in stock and
inputs contained in semi-finished or finished goods held in stock on the day
immediately preceding the date of grant of registration; Ø where
any registered person ceases to pay tax under section 10, he shall be
entitled to take credit of input tax in respect of inputs held in stock,
inputs contained in semi-finished or finished goods held in stock and on
capital goods on the day immediately preceding the date from which he becomes
liable to pay tax under section 9: Ø Provided
that the credit on capital goods shall be reduced by such percentage points
as may be prescribed; Ø where
an exempt supply of goods or services or both by a registered person becomes
a taxable supply, such person shall be entitled to take credit of input tax
in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock relatable to such exempt supply and on capital
goods exclusively used for such exempt supply on the day immediately
preceding the date from which such supply becomes taxable: |
Provided that the credit on capital goods shall be
reduced by such percentage points as may be prescribed. |
(2) A registered person shall not be entitled to take
input tax credit under sub-section (1) in respect of any supply of goods or
services or both to him after the expiry of one year from the date of issue
of tax invoice relating to such supply. |
Provided that after payment of such amount, the balance
of input tax credit, if any, lying in his electronic credit ledger shall
lapse. |
(5) The amount of credit under sub-section (1) and the
amount payable under sub-section (4) shall be calculated in such manner as
may be prescribed. |
Provided that where refractory bricks, moulds and dies,
jigs and fixtures are supplied as scrap, the taxable person may pay tax on
the transaction value of such goods determined under section 15. |
19. Taking input tax credit in respect of inputs and
capital goods sent for job work. |
Provided that where the capital goods are sent directly
to a job worker, the period of three years shall be counted from the date of
receipt of capital goods by the job worker. |
(7) Nothing contained in sub-section (3) or sub-section
(6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a
job worker for job work. |
Explanation.–– For the purpose of this
section, “principal” means the person referred to in section 143. |
20. Manner of distribution of credit by Input Service
Distributor. Ø the
credit can be distributed to the recipients of credit against a document
containing such details as may be prescribed; Ø the
amount of the credit distributed shall not exceed the amount of credit
available for distribution; Ø the
credit of tax paid on input services attributable to a recipient of credit
shall be distributed only to that recipient; Ø the
credit of tax paid on input services attributable to more than one recipient
of credit shall be distributed amongst such recipients to whom the input
service is attributable and such distribution shall be pro rata on the basis
of the turnover in a State or turnover in a Union territory of such
recipient, during the relevant period, to the aggregate of the turnover of
all such recipients to whom such input service is attributable and which are
operational in the current year, during the said relevant period; Ø the
credit of tax paid on input services attributable to all recipients of credit
shall be distributed amongst such recipients and such distribution shall be
pro rata on the basis of the turnover in a State or turnover in a Union
territory of such recipient, during the relevant period, to the aggregate of
the turnover of all recipients and which are operational in the current year,
during the said relevant period. |
Explanation.–– For the purposes of
this section,–– Ø the
“relevant period” shall be–– Ø the
expression “recipient of credit” means the supplier of goods or services or
both having the same Permanent Account Number as that of the Input Service
Distributor; Ø the
term ‘‘turnover’’, in relation to any registered person engaged in the supply
of taxable goods as well as goods not taxable under this Act, means the value
of turnover, reduced by the amount of any duty or tax levied under entry 84
of List I of the Seventh Schedule to the Constitution and entries 51 and 54
of List II of the said Schedule. |
21. Manner of recovery of credit distributed in excess. |
- CHAPTER VI - REGISTRATION
22. Persons liable for registration. |
Provided that where such person makes taxable supplies of
goods or services or both from any of the special category States, he shall
be liable to be registered if his aggregate turnover in a financial year
exceeds ten lakh rupees. |
(2) Every person who, on the day immediately preceding
the appointed day, is registered or holds a licence under an existing law,
shall be liable to be registered under this Act with effect from the
appointed day. |
Explanation.––
For the purposes of this section,–– |
23. Persons not liable for registration. Ø any
person engaged exclusively in the business of supplying goods or services or
both that are not liable to tax or wholly exempt from tax under this Act or
under the Integrated Goods and Services Tax Act; Ø an
agriculturist, to the extent of supply of produce out of cultivation of land. The Government may, on the recommendations of the
Council, by notification, specify the category of persons who may be exempted
from obtaining registration under this Act. |
24. Compulsory registration in certain cases. |
25. Procedure for registration. |
Provided that a casual taxable person or a non-resident
taxable person shall apply for registration at least five days prior to the
commencement of business. |
Explanation.— Every person who
makes a supply from the territorial waters of India shall obtain registration
in the coastal State or Union territory where the nearest point of the
appropriate baseline is located. |
Provided that a person having multiple business verticals
in a State or Union territory may be granted a separate registration for each
business vertical, subject to such conditions as may be prescribed. |
(3) A person, though not liable to be registered under
section 22 or section 24 may get himself registered voluntarily, and all
provisions of this Act, as are applicable to a registered person, shall apply
to such person |
Provided that a person required to deduct tax under
section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction
and Collection Account Number issued under the said Act in order to be
eligible for grant of registration. |
(7) Notwithstanding anything contained in sub-section
(6), a non-resident taxable person may be granted registration under
sub-section (1) on the basis of such other documents as may be prescribed. |
(9) Notwithstanding anything contained in sub-section
(1),–– Ø any
specialised agency of the United Nations Organisation or any Multilateral
Financial Institution and Organisation notified under the United Nations
(Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign
countries; and Ø any
other person or class of persons, as may be notified by the Commissioner,
shall be granted a Unique Identity Number in such manner and for such
purposes, including refund of taxes on the notified supplies of goods or
services or both received by them, as may be prescribed. |
(10) The registration or the Unique Identity Number shall
be granted or rejected after due verification in such manner and within such
period as may be prescribed. |
26. Deemed registration. |
27. Special provisions relating to casual taxable person
and non-resident taxable person. |
28. Amendment of registration. |
Provided that approval of the proper officer shall not be
required in respect of amendment of such particulars as may be prescribed: |
Provided further that the proper officer shall not reject
the application for amendment in the registration particulars without giving
the person an opportunity of being heard. |
(3) Any rejection or approval of amendments under the
State Goods and Services Tax Act or the Union Territory Goods and Services
Tax Act, as the case may be, shall be deemed to be a rejection or approval
under this Act. |
29. Cancellation of registration. Ø the
business has been discontinued, transferred fully for any reason including
death of the proprietor, amalgamated with other legal entity, demerged or
otherwise disposed of; or Ø there
is any change in the constitution of the business; or Ø the
taxable person, other than the person registered under sub-section (3) of
section 25, is no longer liable to be registered under section 22 or section
24. |
(2) The proper officer may cancel the registration of a
person from such date, including any retrospective date, as he may deem fit,
where,–– Ø a
registered person has contravened such provisions of the Act or the rules
made thereunder as may be prescribed; or Ø a
person paying tax under section 10 has not furnished returns for three
consecutive tax periods; or Ø any
registered person, other than a person specified in clause (b), has not
furnished returns for a continuous period of six months; or Ø any
person who has taken voluntary registration under sub-section (3) of section
25 has not commenced business within six months from the date of
registration; or Ø registration
has been obtained by means of fraud, wilful misstatement or suppression of
facts: |
Provided that the proper officer shall not cancel the
registration without giving the person an opportunity of being heard. |
(3) The cancellation of registration under this section
shall not affect the liability of the person to pay tax and other dues under
this Act or to discharge any obligation under this Act or the rules made
thereunder for any period prior to the date of cancellation whether or not
such tax and other dues are determined before or after the date of
cancellation. |
Provided that in case of capital goods or plant and
machinery, the taxable person shall pay an amount equal to the input tax
credit taken on the said capital goods or plant and machinery, reduced by
such percentage points as may be prescribed or the tax on the transaction
value of such capital goods or plant and machinery under section 15,
whichever is higher |
30. Revocation of cancellation of registration. |
(2) The proper officer may, in such manner and within
such period as may be prescribed, by order, either revoke cancellation of the
registration or reject the application: |
Provided that the application for revocation of
cancellation of registration shall not be rejected unless the applicant has
been given an opportunity of being heard. |
(3) The revocation of cancellation of registration under
the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act, as the case may be, shall be deemed to be a revocation of
cancellation of registration under this Act. |
- CHAPTER VII - TAX INVOICE, CREDIT AND DEBIT NOTES
31. Tax invoice. Ø removal
of goods for supply to the recipient, where the supply involves movement of
goods; or Ø delivery
of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and
value of goods, the tax charged thereon and such other particulars as may be
prescribed: |
Provided that the Government may, on the recommendations
of the Council, by notification, specify the categories of goods or supplies
in respect of which a tax invoice shall be issued, within such time and in
such manner as may be prescribed. |
(3) The revocation of cancellation of registration under
the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act, as the case may be, shall be deemed to be a revocation of
cancellation of registration under this Act. |
(2) A registered person supplying taxable services shall,
before or after the provision of service but within a prescribed period,
issue a tax invoice, showing the description, value, tax charged thereon and
such other particulars as may be prescribed: |
Provided that the Government may, on the recommendations
of the Council, by notification and subject to such conditions as may be
mentioned therein, specify the categories of services in respect of which–– Ø any
other document issued in relation to the supply shall be deemed to be a tax
invoice; or Ø tax
invoice may not be issued. |
(3) Notwithstanding anything contained in sub-sections
(1) and (2)–– Ø a
registered person may, within one month from the date of issuance of
certificate of registration and in such manner as may be prescribed, issue a
revised invoice against the invoice already issued during the period
beginning with the effective date of registration till the date of issuance
of certificate of registration to him; Ø a
registered person may not issue a tax invoice if the value of the goods or
services or both supplied is less than two hundred rupees subject to such
conditions and in such manner as may be prescribed; Ø a
registered person supplying exempted goods or services or both or paying tax
under the provisions of section 10 shall issue, instead of a tax invoice, a
bill of supply containing such particulars and in such manner as may be
prescribed: Ø Provided
that the registered person may not issue a bill of supply if the value of the
goods or services or both supplied is less than two hundred rupees subject to
such conditions and in such manner as may be prescribed; Ø a
registered person shall, on receipt of advance payment with respect to any
supply of goods or services or both, issue a receipt voucher or any other
document, containing such particulars as may be prescribed, evidencing
receipt of such payment; Ø where,
on receipt of advance payment with respect to any supply of goods or services
or both the registered person issues a receipt voucher, but subsequently no
supply is made and no tax invoice is issued in pursuance thereof, the said
registered person may issue to the person who had made the payment, a refund
voucher against such payment; Ø a
registered person who is liable to pay tax under sub-section (3) or
sub-section (4) of section 9 shall issue an invoice in respect of goods or
services or both received by him from the supplier who is not registered on
the date of receipt of goods or services or both; Ø a
registered person who is liable to pay tax under sub-section (3) or
sub-section (4) of section 9 shall issue a payment voucher at the time of making
payment to the supplier. |
(4) In case of continuous supply of goods, where
successive statements of accounts or successive payments are involved, the
invoice shall be issued before or at the time each such statement is issued
or, as the case may be, each such payment is received. Ø where
the due date of payment is ascertainable from the contract, the invoice shall
be issued on or before the due date of payment; Ø where
the due date of payment is not ascertainable from the contract, the invoice
shall be issued before or at the time when the supplier of service receives
the payment; Ø where
the payment is linked to the completion of an event, the invoice shall be
issued on or before the date of completion of that event. |
(6) In a case where the supply of services ceases under a
contract before the completion of the supply, the invoice shall be issued at
the time when the supply ceases and such invoice shall be issued to the
extent of the supply made before such cessation. |
32. Prohibition of unauthorised collection of tax. |
33. Amount of tax to be indicated in tax invoice and
other documents. |
34. Credit and debit notes. |
(2) Any registered person who issues a credit note in
relation to a supply of goods or services or both shall declare the details
of such credit note in the return for the month during which such credit note
has been issued but not later than September following the end of the
financial year in which such supply was made, or the date of furnishing of
the relevant annual return, whichever is earlier, and the tax liability shall
be adjusted in such manner as may be prescribed: |
Provided that no reduction in output tax liability of the
supplier shall be permitted, if the incidence of tax and interest on such
supply has been passed on to any other person. |
(3) Where a tax invoice has been issued for supply of any
goods or services or both and the taxable value or tax charged in that tax
invoice is found to be less than the taxable value or tax payable in respect
of such supply, the registered person, who has supplied such goods or
services or both, shall issue to the recipient a debit note containing such
particulars as may be prescribed. |
Explanation.–– For the purposes of
this Act, the expression “debit note” shall include a supplementary invoice. |
- CHAPTER VIII - ACCOUNTS AND RECORDS
35. Accounts and other records. Ø production
or manufacture of goods; Ø inward
and outward supply of goods or services or both; Ø stock
of goods; Ø input
tax credit availed; Ø output
tax payable and paid; and Ø such
other particulars as may be prescribed: |
Provided that where more than one place of business is
specified in the certificate of registration, the accounts relating to each
place of business shall be kept at such places of business: |
Provided further that the registered person may keep and
maintain such accounts and other particulars in electronic form in such
manner as may be prescribed. |
(2) Every owner or operator of warehouse or godown or any
other place used for storage of goods and every transporter, irrespective of
whether he is a registered person or not, shall maintain records of the
consigner, consignee and other relevant details of the goods in such manner
as may be prescribed. |
36. Period of retention of accounts. |
- CHAPTER IX - RETURNS
37. Furnishing details of outward supplies |
Provided that the registered person shall not be allowed
to furnish the details of outward supplies during the period from the
eleventh day to the fifteenth day of the month succeeding the tax period: |
Provided further that the Commissioner may, for reasons
to be recorded in writing, by notification, extend the time limit for
furnishing such details for such class of taxable persons as may be specified
therein: |
Provided also that any extension of time limit notified
by the Commissioner of State tax or Commissioner of Union territory tax shall
be deemed to be notified by the Commissioner. |
(2) Every registered person who has been communicated the
details under sub-section (3) of section 38 or the details pertaining to
inward supplies of Input Service Distributor under sub-section (4) of section
38, shall either accept or reject the details so communicated, on or before
the seventeenth day, but not before the fifteenth day, of the month
succeeding the tax period and the details furnished by him under sub-section
(1) shall stand amended accordingly. |
Provided that no rectification of error or omission in
respect of the details furnished under sub-section (1) shall be allowed after
furnishing of the return under section 39 for the month of September
following the end of the financial year to which such details pertain, or
furnishing of the relevant annual return, whichever is earlier |
Explanation.–– For the purposes of
this Chapter, the expression “details of outward supplies” shall include
details of invoices, debit notes, credit notes and revised invoices issued in
relation to outward supplies made during any tax period. |
38. Furnishing details of inward supplies. |
Provided that the Commissioner may, for reasons to be
recorded in writing, by notification, extend the time limit for furnishing
such details for such class of taxable persons as may be specified therein: |
Provided further that any extension of time limit
notified by the Commissioner of State tax or Commissioner of Union territory
tax shall be deemed to be notified by the Commissioner. |
(3) The details of supplies modified, deleted or included
by the recipient and furnished under sub-section (2) shall be communicated to
the supplier concerned in such manner and within such time as may be
prescribed. |
Provided that no rectification of error or omission in
respect of the details furnished under sub-section (2) shall be allowed after
furnishing of the return under section 39 for the month of September
following the end of the financial year to which such details pertain, or
furnishing of the relevant annual return, whichever is earlier. |
39. Furnishing of returns. |
Provided that any extension of time limit notified by the
Commissioner of State tax or Union territory tax shall be deemed to be
notified by the Commissioner. |
(7) Every registered person, who is required to furnish a
return under sub-section (1) or sub-section (2) or sub-section (3) or
sub-section (5), shall pay to the Government the tax due as per such return
not later than the last date on which he is required to furnish such return |
Provided that no such rectification of any omission or
incorrect particulars shall be allowed after the due date for furnishing of
return for the month of September or second quarter following the end of the
financial year, or the actual date of furnishing of relevant annual return,
whichever is earlier. |
(10) A registered person shall not be allowed to furnish
a return for a tax period if the return for any of the previous tax periods
has not been furnished by him. |
40. First return. |
41. Claim of input tax credit and provisional acceptance
thereof. |
42. Matching, reversal and reclaim of input tax credit. Ø with
the corresponding details of outward supply furnished by the corresponding
registered person (hereafter in this section referred to as the “supplier”)
in his valid return for the same tax period or any preceding tax period; Ø with
the integrated goods and services tax paid under section 3 of the Customs
Tariff Act, 1975 in respect of goods imported by him; and Ø for
duplication of claims of input tax credit. |
(2) The claim of input tax credit in respect of invoices
or debit notes relating to inward supply that match with the details of
corresponding outward supply or with the integrated goods and services tax
paid under section 3 of the Customs Tariff Act, 1975 in respect of goods
imported by him shall be finally accepted and such acceptance shall be
communicated, in such manner as may be prescribed, to the recipient. |
Provided that the amount of interest to be credited in
any case shall not exceed the amount of interest paid by the supplier. |
(10) The amount reduced from the output tax liability in
contravention of the provisions of sub-section (7) shall be added to the
output tax liability of the recipient in his return for the month in which
such contravention takes place and such recipient shall be liable to pay
interest on the amount so added at the rate specified in sub-section (3) of
section 50. |
43. Matching, reversal and reclaim of reduction in output
tax liability Ø with
the corresponding reduction in the claim for input tax credit by the
corresponding registered person (hereafter in this section referred to as the
“recipient”) in his valid return for the same tax period or any subsequent
tax period; and Ø for
duplication of claims for reduction in output tax liability |
(2) The claim for reduction in output tax liability by
the supplier that matches with the corresponding reduction in the claim for
input tax credit by the recipient shall be finally accepted and communicated,
in such manner as may be prescribed, to the supplier |
Provided that the amount of interest to be credited in
any case shall not exceed the amount of interest paid by the recipient. |
(10) The amount reduced from output tax liability in
contravention of the provisions of sub-section (7) shall be added to the
output tax liability of the supplier in his return for the month in which
such contravention takes place and such supplier shall be liable to pay
interest on the amount so added at the rate specified in sub-section (3) of section
50. |
44. Annual return. |
45. Final return. |
46. Notice to return defaulters. |
47. Levy of late fee. |
48. Goods and services tax practitioners. |
- CHAPTER X - PAYMENT OF TAX
49. Payment of tax, interest, penalty and other amounts |
(5) The amount of input tax credit available in the
electronic credit ledger of the registered person on account of–– Ø integrated
tax shall first be utilised towards payment of integrated tax and the amount
remaining, if any, may be utilised towards the payment of central tax and
State tax, or as the case may be, Union territory tax, in that order; Ø the
central tax shall first be utilised towards payment of central tax and the
amount remaining, if any, may be utilised towards the payment of integrated
tax; Ø the
State tax shall first be utilised towards payment of State tax and the amount
remaining, if any, may be utilised towards payment of integrated tax; Ø the
Union territory tax shall first be utilised towards payment of Union
territory tax and the amount remaining, if any, may be utilised towards
payment of integrated tax; Ø the
central tax shall not be utilised towards payment of State tax or Union
territory tax; and Ø the
State tax or Union territory tax shall not be utilised towards payment of
central tax |
(6) The balance in the electronic cash ledger or
electronic credit ledger after payment of tax, interest, penalty, fee or any
other amount payable under this Act or the rules made thereunder may be
refunded in accordance with the provisions of section 54. Ø self-assessed
tax, and other dues related to returns of previous tax periods; Ø self-assessed
tax, and other dues related to the return of the current tax period; Ø any
other amount payable under this Act or the rules made thereunder including
the demand determined under section 73 or section 74. |
(9) Every person who has paid the tax on goods or
services or both under this Act shall, unless the contrary is proved by him,
be deemed to have passed on the full incidence of such tax to the recipient
of such goods or services or both. |
Explanation.–– For the purposes of
this section,— Ø the
date of credit to the account of the Government in the authorised bank shall
be deemed to be the date of deposit in the electronic cash ledger; Ø the
expression,— |
50. Interest on delayed payment of tax. |
51. Tax deduction at source. Ø a
department or establishment of the Central Government or State Government; or Ø local
authority; or Ø Governmental
agencies; or Ø such
persons or category of persons as may be notified by the Government on the
recommendations of the Council, (hereafter in this section referred to as “the
deductor”), to deduct tax at the rate of one per cent. from the payment made
or credited to the supplier (hereafter in this section referred to as “the
deductee”) of taxable goods or services or both, where the total value of
such supply, under a contract, exceeds two lakh and fifty thousand rupees: |
Provided that no deduction shall be made if the location
of the supplier and the place of supply is in a State or Union territory
which is different from the State or as the case may be, Union territory of
registration of the recipient. |
Explanation.–– For the purpose of
deduction of tax specified above, the value of supply shall be taken as the
amount excluding the central tax, State tax, Union territory tax, integrated
tax and cess indicated in the invoice. |
(2) The amount deducted as tax under this section shall
be paid to the Government by the deductor within ten days after the end of
the month in which such deduction is made, in such manner as may be
prescribed. |
Provided that no refund to the deductor shall be granted,
if the amount deducted has been credited to the electronic cash ledger of the
deductee. |
52. Collection of tax at source. |
Provided that no such rectification of any omission or
incorrect particulars shall be allowed after the due date for furnishing of
statement for the month of September following the end of the financial year
or the actual date of furnishing of the relevant annual statement, whichever
is earlier. |
(7) The supplier who has supplied the goods or services
or both through the operator shall claim credit, in his electronic cash
ledger, of the amount collected and reflected in the statement of the
operator furnished under sub-section (4), in such manner as may be
prescribed. |
(12) Any authority not below the rank of Deputy
Commissioner may serve a notice, either before or during the course of any
proceedings under this Act, requiring the operator to furnish such details
relating to— Ø supplies
of goods or services or both effected through such operator during any
period; or Ø stock
of goods held by the suppliers making supplies through such operator in the
godowns or warehouses, by whatever name called, managed by such operator and
declared as additional places of business by such suppliers, as may be specified in the notice. |
(13) Every operator on whom a notice has been served
under sub-section (12) shall furnish the required information within fifteen
working days of the date of service of such notice. |
Explanation.— For the purposes of
this section, the expression “concerned supplier” shall mean the supplier of
goods or services or both making supplies through the operator. |
53. Transfer of input tax credit. |
- CHAPTER XI - REFUNDS
54. Refund of tax. |
Provided that a registered person, claiming refund of any
balance in the electronic cash ledger in accordance with the provisions of
sub-section (6) of section 49, may claim such refund in the return furnished
under section 39 in such manner as may be prescribed. |
(2) A specialised agency of the United Nations
Organisation or any Multilateral Financial Institution and Organisation
notified under the United Nations (Privileges and Immunities) Act, 1947,
Consulate or Embassy of foreign countries or any other person or class of
persons, as notified under section 55, entitled to a refund of tax paid by it
on inward supplies of goods or services or both, may make an application for
such refund, in such form and manner as may be prescribed, before the expiry
of six months from the last day of the quarter in which such supply was
received. |
Provided that no refund of unutilised input tax credit
shall be allowed in cases other than–– |
Provided further that no refund of unutilised input tax
credit shall be allowed in cases where the goods exported out of India are
subjected to export duty: |
Provided also that no refund of input tax credit shall be
allowed, if the supplier of goods or services or both avails of drawback in
respect of central tax or claims refund of the integrated tax paid on such
supplies. |
(4) The application shall be accompanied by— Ø such
documentary evidence as may be prescribed to establish that a refund is due
to the applicant; and Ø such
documentary or other evidence (including the documents referred to in section
33) as the applicant may furnish to establish that the amount of tax and
interest, if any, paid on such tax or any other amount paid in relation to
which such refund is claimed was collected from, or paid by, him and the incidence
of such tax and interest had not been passed on to any other person: |
Provided that where the amount claimed as refund is less
than two lakh rupees, it shall not be necessary for the applicant to furnish
any documentary and other evidences but he may file a declaration, based on
the documentary or other evidences available with him, certifying that the
incidence of such tax and interest had not been passed on to any other
person. |
(5) If, on receipt of any such application, the proper
officer is satisfied that the whole or part of the amount claimed as refund
is refundable, he may make an order accordingly and the amount so determined
shall be credited to the Fund referred to in section 57. |
(8) Notwithstanding anything contained in sub-section
(5), the refundable amount shall, instead of being credited to the Fund, be
paid to the applicant, if such amount is relatable to— Ø refund
of tax paid on zero-rated supplies of goods or services or both or on inputs
or input services used in making such zero-rated supplies; Ø refund
of unutilised input tax credit under sub-section (3); Ø refund
of tax paid on a supply which is not provided, either wholly or partially,
and for which invoice has not been issued, or where a refund voucher has been
issued; Ø refund
of tax in pursuance of section 77; Ø the
tax and interest, if any, or any other amount paid by the applicant, if he
had not passed on the incidence of such tax and interest to any other person;
or Ø the
tax or interest borne by such other class of applicants as the Government
may, on the recommendations of the Council, by notification, specify. |
(9) Notwithstanding anything to the contrary contained in
any judgment, decree, order or direction of the Appellate Tribunal or any
court or in any other provisions of this Act or the rules made thereunder or
in any other law for the time being in force, no refund shall be made except
in accordance with the provisions of sub-section (8). |
(10) Where any refund is due under sub-section (3) to a
registered person who has defaulted in furnishing any return or who is
required to pay any tax, interest or penalty, which has not been stayed by
any court, Tribunal or Appellate Authority by the specified date, the proper
officer may— Ø withhold
payment of refund due until the said person has furnished the return or paid
the tax, interest or penalty, as the case may be; Ø deduct
from the refund due, any tax, interest, penalty, fee or any other amount
which the taxable person is liable to pay but which remains unpaid under this
Act or under the existing law. |
Explanation.––For the purposes of
this sub-section, the expression “specified date” shall mean the last date
for filing an appeal under this Act. |
(11) Where an order giving rise to a refund is the
subject matter of an appeal or further proceedings or where any other
proceedings under this Act is pending and the Commissioner is of the opinion
that grant of such refund is likely to adversely affect the revenue in the
said appeal or other proceedings on account of malfeasance or fraud
committed, he may, after giving the taxable person an opportunity of being
heard, withhold the refund till such time as he may determine. |
Explanation.—For the purposes of
this section,–– Ø in
the case of goods exported out of India where a refund of tax paid is
available in respect of goods themselves or, as the case may be, the inputs
or input services used in such goods,–– Ø in
the case of supply of goods regarded as deemed exports where a refund of tax
paid is available in respect of the goods, the date on which the return
relating to such deemed exports is furnished; Ø in
the case of services exported out of India where a refund of tax paid is
available in respect of services themselves or, as the case may be, the
inputs or input services used in such services, the date of–– Ø in
case where the tax becomes refundable as a consequence of judgment, decree,
order or direction of the Appellate Authority, Appellate Tribunal or any
court, the date of communication of such judgment, decree, order or
direction; Ø in
the case of refund of unutilised input tax credit under sub-section (3), the
end of the financial year in which such claim for refund arises; Ø in
the case where tax is paid provisionally under this Act or the rules made
thereunder, the date of adjustment of tax after the final assessment thereof; Ø in
the case of a person, other than the supplier, the date of receipt of goods
or services or both by such person; and Ø in
any other case, the date of payment of tax. |
55. Refund in certain cases. |
56. Interest on delayed refunds. |
Provided that where any claim of refund arises from an
order passed by an adjudicating authority or Appellate Authority or Appellate
Tribunal or 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 by the Government 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 date of receipt of application till the date of
refund. |
Explanation.––For the purposes of
this section, where any order of refund is made by an Appellate Authority,
Appellate Tribunal or any court against an order of the proper officer under
sub-section (5) of section 54, the order passed by the Appellate Authority,
Appellate Tribunal or by the court shall be deemed to be an order passed
under the said sub-section (5). |
57. Consumer Welfare Fund. Ø the
amount referred to in sub-section (5) of section 54; Ø any
income from investment of the amount credited to the Fund; and Ø such
other monies received by it, in such manner as may be prescribed. |
58. Utilisation of Fund. |
- CHAPTER XII - ASSESSMENT
59. Self assessment. |
60. Provisional assessment. |
Provided that the period specified in this sub-section
may, on sufficient cause being shown and for reasons to be recorded in
writing, be extended by the Joint Commissioner or Additional Commissioner for
a further period not exceeding six months and by the Commissioner for such
further period not exceeding four years. |
(4) The registered person shall be liable to pay interest
on any tax payable on the supply of goods or services or both under
provisional assessment but not paid on the due date specified under
sub-section (7) of section 39 or the rules made thereunder, at the rate
specified under sub-section (1) of section 50, from the first day after the
due date of payment of tax in respect of the said supply of goods or services
or both till the date of actual payment, whether such amount is paid before
or after the issuance of order for final assessment. |
61. Scrutiny of returns. |
62. Assessment of non-filers of returns. |
63. Assessment of unregistered persons. Notwithstanding
anything to the contrary contained in section 73 or section 74, where a
taxable person fails to obtain registration even though liable to do so or
whose registration has been cancelled under sub-section (2) of section 29 but
who was liable to pay tax, the proper officer may proceed to assess the tax
liability of such taxable person to the best of his judgment for the relevant
tax periods and issue an assessment order within a period of five years from
the date specified under section 44 for furnishing of the annual return for
the financial year to which the tax not paid relates: |
Provided that no such assessment order shall be passed
without giving the person an opportunity of being heard. |
64. Summary assessment in certain special cases. |
- CHAPTER XIII - AUDIT
65. Audit by tax authorities. |
Explanation.––
For the purposes of this sub-section, the expression "commencement of
audit" shall mean the date on which the records and other documents,
called for by the tax authorities, are made available by the registered
person or the actual institution of audit at the place of business, whichever
is later |
(5) During the course of audit, the authorised officer
may require the registered person,— |
66. Special audit. |
Provided that the Assistant Commissioner may, on an
application made to him in this behalf by the registered person or the
chartered accountant or cost accountant or for any material and sufficient
reason, extend the said period by a further period of ninety days. |
(3) The provisions of sub-section (1) shall have effect
notwithstanding that the accounts of the registered person have been audited
under any other provisions of this Act or any other law for the time being in
force. |
- CHAPTER XIV - INSPECTION, SEARCH, SEIZURE AND ARREST
67. Power of inspection, search and seizure. Ø a
taxable person has suppressed any transaction relating to supply of goods or
services or both or the stock of goods in hand, or has claimed input tax
credit in excess of his entitlement under this Act or has indulged in
contravention of any of the provisions of this Act or the rules made
thereunder to evade tax under this Act; or Ø any
person engaged in the business of transporting goods or an owner or operator
of a warehouse or a godown or any other place is keeping goods which have
escaped payment of tax or has kept his accounts or goods in such a manner as
is likely to cause evasion of tax payable under this Act, he may authorise in writing any other officer of central
tax to inspect any places of business of the taxable person or the persons
engaged in the business of transporting goods or the owner or the operator of
warehouse or godown or any other place. |
Provided that where it is not practicable to seize any
such goods, the proper officer, or any officer authorised by him, may serve
on the owner or the custodian of the goods an order that he shall not remove,
part with, or otherwise deal with the goods except with the previous
permission of such officer: |
Provided further that the documents or books or things so
seized shall be retained by such officer only for so long as may be necessary
for their examination and for any inquiry or proceedings under this Act. |
(3) The documents, books or things referred to in
sub-section (2) or any other documents, books or things produced by a taxable
person or any other person, which have not been relied upon for the issue of
notice under this Act or the rules made thereunder, shall be returned to such
person within a period not exceeding thirty days of the issue of the said
notice. |
Provided that the period of six months may, on sufficient
cause being shown, be extended by the proper officer for a further period not
exceeding six months. |
(8) The Government may, having regard to the perishable
or hazardous nature of any goods, depreciation in the value of the goods with
the passage of time, constraints of storage space for the goods or any other
relevant considerations, by notification, specify the goods or class of goods
which shall, as soon as may be after its seizure under sub-section (2), be
disposed of by the proper officer in such manner as may be prescribed. |
68.Inspection of goods in movement. |
69. Power to arrest. |
(3) Subject to the provisions of the Code of Criminal
Procedure, 1973,–– Ø where
a person is arrested under sub-section (1) for any offence specified under
sub-section (4) of section 132, he shall be admitted to bail or in default of
bail, forwarded to the custody of the Magistrate; Ø in
the case of a non-cognizable and bailable offence, the Deputy Commissioner or
the Assistant Commissioner shall, for the purpose of releasing an arrested
person on bail or otherwise, have the same powers and be subject to the same
provisions as an officer-in-charge of a police station. |
70. Power to summon persons to give evidence and produce
documents. |
71. Access to business premises. |
72. Officers to assist proper officers. |
- CHAPTER XV - DEMANDS AND RECOVERYT
73. Determination of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilised for any
reason other than fraud or any willful misstatement or suppression of facts. |
74. Determination of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilised by
reason of fraud or any wilfulmisstatement or suppression of facts. |
Explanation 1.— For the purposes of
section 73 and this section,— |
75. General provisions relating to determination of tax. |
Provided that no such adjournment shall be granted for
more than three times to a person during the proceedings. |
(6) The proper officer, in his order, shall set out the
relevant facts and the basis of his decision. |
76.Tax collected but not paid to Government. |
77. Tax wrongfully collected and paid to Central
Government or State Government. |
78. Initiation of recovery proceedings. |
79. Recovery of tax. Ø the
proper officer may deduct or may require any other specified officer to
deduct the amount so payable from any money owing to such person which may be
under the control of the proper officer or such other specified officer; Ø the
proper officer may recover or may require any other specified officer to
recover the amount so payable by detaining and selling any goods belonging to
such person which are under the control of the proper officer or such other
specified officer; Ø (i)
the proper officer may, by a notice in writing, require any other person from
whom money is due or may become due to such person or who holds or may
subsequently hold money for or on account of such person, to pay to the
Government either forthwith upon the money becoming due or being held, or
within the time specified in the notice not being before the money becomes
due or is held, so much of the money as is sufficient to pay the amount due
from such person or the whole of the money when it is equal to or less than
that amount; Ø the
proper officer may, in accordance with the rules to be made in this behalf,
distrain any movable or immovable property belonging to or under the control
of such person, and detain the same until the amount payable is paid; and in
case, any part of the said amount payable or of the cost of the distress or
keeping of the property, remains unpaid for a period of thirty days next
after any such distress, may cause the said property to be sold and with the
proceeds of such sale, may satisfy the amount payable and the costs including
cost of sale remaining unpaid and shall render the surplus amount, if any, to
such person; Ø the
proper officer may prepare a certificate signed by him specifying the amount
due from such person and send it to the Collector of the district in which
such person owns any property or resides or carries on his business or to any
officer authorised by the Government and the said Collector or the said
officer, on receipt of such certificate, shall proceed to recover from such
person the amount specified thereunder as if it were an arrear of land
revenue; Ø Notwithstanding
anything contained in the Code of Criminal Procedure, 1973, the proper
officer may file an application to the appropriate Magistrate and such
Magistrate shall proceed to recover from such person the amount specified
thereunder as if it were a fine imposed by him. |
(2) Where the terms of any bond or other instrument
executed under this Act or any rules or regulations made thereunder provide
that any amount due under such instrument may be recovered in the manner laid
down in sub-section (1), the amount may, without prejudice to any other mode
of recovery, be recovered in accordance with the provisions of that
sub-section. |
80. Payment of tax and other amount in instalments. |
81. Transfer of property to be void in certain cases. |
82. Tax to be first charge on property. |
83. Provisional attachment to protect revenue in certain
cases. |
84. Continuation and validation of certain recovery
proceedings. Ø where
such Government dues are enhanced in such appeal, revision or other
proceedings, the Commissioner shall serve upon the taxable person or any
other person another notice of demand in respect of the amount by which such
Government dues are enhanced and any recovery proceedings in relation to such
Government dues as are covered by the notice of demand served upon him before
the disposal of such appeal, revision or other proceedings may, without the
service of any fresh notice of demand, be continued from the stage at which
such proceedings stood immediately before such disposal; Ø where
such Government dues are reduced in such appeal, revision or in other
proceedings–– |
- CHAPTER XVI - LIABILITY TO PAY IN CERTAIN CASES
85. Liability in case of transfer of business. |
86. Liability of agent and principal. |
87. Liability in case of amalgamation or merger of
companies. |
88. Liability in case of company in liquidation. |
89. Liability of directors of private company. |
90. Liability of partners of firm to pay tax. |
Provided that where any partner retires from the firm, he
or the firm, shall intimate the date of retirement of the said partner to the
Commissioner by a notice in that behalf in writing and such partner shall be
liable to pay tax, interest or penalty due up to the date of his retirement
whether determined or not, on that date: |
Provided further that if no such intimation is given
within one month from the date of retirement, the liability of such partner
under the first proviso shall continue until the date on which such
intimation is received by the Commissioner. |
91. Liability of guardians, trustees, etc. |
92. Liability of Court of Wards, etc. |
93. Special provisions regarding liability to pay tax,
interest or penalty in certain cases. Ø if
a business carried on by the person is continued after his death by his legal
representative or any other person, such legal representative or other
person, shall be liable to pay tax, interest or penalty due from such person
under this Act; and Ø if
the business carried on by the person is discontinued, whether before or
after his death, his legal representative shall be liable to pay, out of the
estate of the deceased, to the extent to which the estate is capable of
meeting the charge, the tax, interest or penalty due from such person under this
Act, whether such tax, interest or penalty has been determined
before his death but has remained unpaid or is determined after his death. |
(2) Save as otherwise provided in the Insolvency and
Bankruptcy Code, 2016, where a taxable person, liable to pay tax, interest or
penalty under this Act, is a Hindu Undivided Family or an association of
persons and the property of the Hindu Undivided Family or the association of
persons is partitioned amongst the various members or groups of members,
then, each member or group of members shall, jointly and severally, be liable
to pay the tax, interest or penalty due from the taxable person under this
Act up to the time of the partition whether such tax, penalty or interest has
been determined before partition but has remained unpaid or is determined
after the partition. Ø is
the guardian of a ward on whose behalf the business is carried on by the
guardian; or Ø is
a trustee who carries on the business under a trust for a beneficiary, then, if the guardianship or trust is terminated, the
ward or the beneficiary shall be liable to pay the tax, interest or penalty
due from the taxable person upto the time of the termination of the
guardianship or trust, whether such tax, interest or penalty has been
determined before the termination of guardianship or trust but has remained
unpaid or is determined thereafter. |
96. Liability in other cases. Ø the
tax, interest or penalty payable under this Act by such firm, association or family
up to the date of such discontinuance may be determined as if no such
discontinuance had taken place; and Ø every
person who, at the time of such discontinuance, was a partner of such firm,
or a member of such association or family, shall, notwithstanding such
discontinuance, jointly and severally, be liable for the payment of tax and
interest determined and penalty imposed and payable by such firm, association
or family, whether such tax and interest has been determined or penalty
imposed prior to or after such discontinuance and subject as aforesaid, the
provisions of this Act shall, so far as may be, apply as if every such person
or partner or member were himself a taxable person. (2) Where a change has occurred in the constitution of a
firm or an association of persons, the partners of the firm or members of
association, as it existed before and as it exists after the reconstitution,
shall, without prejudice to the provisions of section 90, jointly and
severally, be liable to pay tax, interest or penalty due from such firm or
association for any period before its reconstitution. |
Explanation.––
For the purposes of this Chapter,–– |
- CHAPTER XVII - ADVANCE RULING
95. Definitions. Ø "advance
ruling" means a decision provided by the Authority or the Appellate
Authority to an applicant on matters or on questions specified in sub-section
(2) of section 97 or sub-section (1) of section 100, in relation to the
supply of goods or services or both being undertaken or proposed to be
undertaken by the applicant; Ø "Appellate
Authority" means the Appellate Authority for Advance Ruling referred to
in section 99; Ø "applicant"
means any person registered or desirous of obtaining registration under this
Act; Ø "application"
means an application made to the Authority under sub-section (1) of section
97; Ø "Authority"
means the Authority for Advance Ruling referred to in section 96. |
96. Authority for advance ruling. |
97. Application for advance ruling. |
98. Procedure on receipt of application. |
Provided that the Authority shall not admit the
application where the question raised in the application is already pending
or decided in any proceedings in the case of an applicant under any of the
provisions of this Act: |
Provided further that no application shall be rejected under
this sub-section unless an opportunity of hearing has been given to the
applicant: |
Provided also that where the application is rejected, the
reasons for such rejection shall be specified in the order. |
(3) A copy of every order made under sub-section (2)
shall be sent to the applicant and to the concerned officer. |
99. Appellate Authority for Advance Ruling. |
100. Appeal to Appellate Authority. |
101. Orders of Appellate Authority. |
102. Rectification of advance ruling. |
103. Applicability of advance ruling. Ø on
the applicant who had sought it in respect of any matter referred to in
sub-section (2) of section 97 for advance ruling; Ø on
the concerned officer or the jurisdictional officer in respect of the
applicant. (2) The advance ruling referred to in sub-section (1)
shall be binding unless the law, facts or circumstances supporting the
original advance ruling have changed. |
104. Advance ruling to be void in certain circumstances. |
Provided that no order shall be passed under this
sub-section unless an opportunity of being heard has been given to the
applicant or the appellant. |
Explanation.––
The period beginning with the date of such advance ruling and ending with the
date of order under this sub-section shall be excluded while computing the
period specified in sub-sections (2) and (10) of section 73 or sub-sections
(2) and (10) of section 74 |
(2) A copy of the order made under sub-section (1) shall
be sent to the applicant, the concerned officer and the jurisdictional
officer. |
105. Powers of Authority and Appellate Authority. Ø discovery
and inspection; Ø enforcing
the attendance of any person and examining him on oath; Ø issuing
commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of
Civil Procedure, 1908. |
106. Procedure of Authority and Appellate Authority |
- CHAPTER XVIII - APPEALS AND REVISION
107. Appeals to Appellate Authority Ø in
full, such part of the amount of tax, interest, fine, fee and penalty arising
from the impugned order, as is admitted by him; and Ø a
sum equal to ten per cent. of the remaining amount of tax in dispute arising
from the said order, in relation to which the appeal has been filed. |
(7) Where the appellant has paid the amount under
sub-section (6), the recovery proceedings for the balance amount shall be
deemed to be stayed. |
Provided that an order enhancing any fee or penalty or
fine in lieu of confiscation or confiscating goods of greater value or
reducing the amount of refund or input tax credit shall not be passed unless
the appellant has been given a reasonable opportunity of showing cause against
the proposed order: |
Provided further that where the Appellate Authority is of
the opinion that any tax has not been paid or short-paid or erroneously
refunded, or where input tax credit has been wrongly availed or utilised, no
order requiring the appellant to pay such tax or input tax credit shall be
passed unless the appellant is given notice to show cause against the
proposed order and the order is passed within the time limit specified under
section 73 or section 74. |
(12) The order of the Appellate Authority disposing of
the appeal shall be in writing and shall state the points for determination,
the decision thereon and the reasons for such decision. |
108. Powers of Revisional Authority Ø the
order has been subject to an appeal under section 107 or section 112 or
section 117 or section 118; or Ø the
period specified under sub-section (2) of section 107 has not yet expired or
more than three years have expired after the passing of the decision or order
sought to be revised; or Ø the
order has already been taken for revision under this section at an earlier
stage; or Ø the
order has been passed in exercise of the powers under sub-section (1): |
Provided that the Revisional Authority may pass an order
under sub-section (1) on any point which has not been raised and decided in
an appeal referred to in clause (a) of sub-section (2), before the expiry of
a period of one year from the date of the order in such appeal or before the
expiry of a period of three years referred to in clause (b) of that
sub-section, whichever is later. |
(3) Every order passed in revision under sub-section (1)
shall, subject to the provisions of section 113 or section 117 or section
118, be final and binding on the parties. |
109. Constitution of Appellate Tribunal and Benches
thereof. |
Provided that the Government shall, on receipt of a
request from any State Government, constitute such number of Area Benches in
that State, as may be recommended by the Council: |
Provided further that the Government may, on receipt of a
request from any State, or on its own motion for a Union territory, notify
the Appellate Tribunal in a State to act as the Appellate Tribunal for any
other State or Union territory, as may be recommended by the Council, subject
to such terms and conditions as may be prescribed. |
(7) The State Bench or Area Benches shall have jurisdiction
to hear appeals against the orders passed by the Appellate Authority or the
Revisional Authority in the cases involving matters other than those referred
to in sub-section (5). (8) The President and the State President shall, by
general or special order, distribute the business or transfer cases among
Regional Benches or, as the case may be, Area Benches in a State. |
Provided that any appeal where the tax or input tax
credit involved or the difference in tax or input tax credit involved or the
amount of fine, fee or penalty determined in any order appealed against, does
not exceed five lakh rupees and which does not involve any question of law
may, with the approval of the President and subject to such conditions as may
be prescribed on the recommendations of the Council, be heard by a bench
consisting of a single member. |
(11) If the Members of the National Bench, Regional
Benches, State Bench or Area Benches differ in opinion on any point or
points, it shall be decided according to the opinion of the majority, if
there is a majority, but if the Members are equally divided, they shall state
the point or points on which they differ, and the case shall be referred by
the President or as the case may be, State President for hearing on such
point or points to one or more of the other Members of the National Bench,
Regional Benches, State Bench or Area Benches and such point or points shall
be decided according to the opinion of the majority of Members who have heard
the case, including those who first heard it. Ø any
Judicial Member or a Member Technical (State) from one Bench to another
Bench, whether National or Regional; or Ø any
Member Technical (Centre) from one Bench to another Bench, whether National,
Regional, State or Area. |
(13) The State Government, in consultation with the State
President may, for the administrative convenience, transfer a Judicial Member
or a Member Technical (State) from one Bench to another Bench within the
State. |
110. President and Members of Appellate Tribunal, their
qualification, appointment, conditions of service, etc. Ø the
President, unless he has been a Judge of the Supreme Court or is or has been
the Chief Justice of a High Court, or is or has been a Judge of a High Court
for a period not less than five years; Ø a
Judicial Member, unless he— Ø a
Technical Member (Centre) unless he is or has been a member of Indian Revenue
(Customs and Central Excise) Service, Group A, and has completed at least
fifteen years of service in Group A; Ø a
Technical Member (State) unless he is or has been an officer of the State
Government not below the rank of Additional Commissioner of Value Added Tax
or the State goods and services tax or such rank as may be notified by the
concerned State Government on the recommendations of the Council with at
least three years of experience in the administration of an existing law or
the State Goods and Services Tax Act or in the field of finance and taxation. (2) The President and the Judicial Members of the
National Bench and the Regional Benches shall be appointed by the Government
after consultation with the Chief Justice of India or his nominee: |
Provided that in the event of the occurrence of any
vacancy in the office of the President by reason of his death, resignation or
otherwise, the senior most Member of the National Bench shall act as the
President until the date on which a new President, appointed in accordance
with the provisions of this Act to fill such vacancy, enters upon his office: |
Provided further that where the President is unable to
discharge his functions owing to absence, illness or any other cause, the
senior most Member of the National Bench shall discharge the functions of the
President until the date on which the President resumes his duties. |
(3) The Technical Member (Centre) and Technical Member
(State) of the National Bench and Regional Benches shall be appointed by the
Government on the recommendations of a Selection Committee consisting of such
persons and in such manner as may be prescribed. Ø has
been adjudged an insolvent; or Ø has
been convicted of an offence which, in the opinion of such Government
involves moral turpitude; or Ø has
become physically or mentally incapable of acting as such President, State
President or Member; or Ø has
acquired such financial or other interest as is likely to affect
prejudicially his functions as such President, State President or Member; or Ø has
so abused his position as to render his continuance in office prejudicial to
the public interest: Provided that the President, State President or the
Member shall not be removed on any of the grounds specified in clauses (d)
and (e), unless he has been informed of the charges against him and has been
given an opportunity of being heard. |
(14) Without prejudice to the provisions of sub-section
(13),–– Ø the
President or a Judicial and Technical Member of the National Bench or
Regional Benches, Technical Member (Centre) of the State Bench or Area
Benches shall not be removed from their office except by an order made by the
Central Government on the ground of proved misbehaviour or incapacity after
an inquiry made by a Judge of the Supreme Court nominated by the Chief
Justice of India on a reference made to him by the Central Government and of
which the President or the said Member had been given an opportunity of being
heard; Ø the
Judicial Member or Technical Member (State) of the State Bench or Area
Benches shall not be removed from their office except by an order made by the
State Government on the ground of proved misbehaviour or incapacity after an
inquiry made by a Judge of the concerned High Court nominated by the Chief
Justice of the concerned High Court on a reference made to him by the State
Government and of which the said Member had been given an opportunity of
being heard. |
(15) The Central Government, with the concurrence of the
Chief Justice of India, may suspend from office, the President or a Judicial
or Technical Members of the National Bench or the Regional Benches or the
Technical Member (Centre) of the State Bench or Area Benches in respect of
whom a reference has been made to the Judge of the Supreme Court under
sub-section (14). |
111. Procedure before Appellate Tribunal. Ø summoning
and enforcing the attendance of any person and examining him on oath; Ø requiring
the discovery and production of documents; Ø receiving
evidence on affidavits; Ø subject
to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872,
requisitioning any public record or document or a copy of such record or
document from any office; Ø issuing
commissions for the examination of witnesses or documents; Ø dismissing
a representation for default or deciding it ex parte; Ø setting
aside any order of dismissal of any representation for default or any order
passed by it ex parte; and Ø any
other matter which may be prescribed. |
(3) Any order made by the Appellate Tribunal may be
enforced by it in the same manner as if it were a decree made by a court in a
suit pending therein, and it shall be lawful for the Appellate Tribunal to
send for execution of its orders to the court within the local limits of
whose jurisdiction,— Ø in
the case of an order against a company, the registered office of the company
is situated; or Ø in
the case of an order against any other person, the person concerned
voluntarily resides or carries on business or personally works for gain. (4) All proceedings before the Appellate Tribunal shall
be deemed to be judicial proceedings within the meaning of sections 193 and
228, and for the purposes of section 196 of the Indian Penal Code, and the
Appellate Tribunal shall be deemed to be civil court for the purposes of
section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. |
112. Appeals to Appellate Tribunal. Ø in
full, such part of the amount of tax, interest, fine, fee and penalty arising
from the impugned order, as is admitted by him, and Ø a
sum equal to twenty per cent. of the remaining amount of tax in dispute, in
addition to the amount paid under sub-section (6) of section 107, arising
from the said order, in relation to which the appeal has been filed. |
(9) Where the appellant has paid the amount as per
sub-section (8), the recovery proceedings for the balance amount shall be
deemed to be stayed till the disposal of the appeal. Ø in
an appeal for rectification of error or for any other purpose; or Ø for
restoration of an appeal or an application, shall be accompanied by such fees as may be prescribed. |
113. Orders of Appellate Tribunal. |
114. Financial and administrative powers of President. |
115. Interest on refund of amount paid for admission of
appeal. |
116. Appearance by authorised representative. Ø his
relative or regular employee; or Ø an
advocate who is entitled to practice in any court in India, and who has not
been debarred from practicing before any court in India; or Ø any
chartered accountant, a cost accountant or a company secretary, who holds a
certificate of practice and who has not been debarred from practice; or Ø a
retired officer of the Commercial Tax Department of any State Government or
Union territory or of the Board who, during his service under the Government,
had worked in a post not below the rank than that of a Group-B Gazetted
officer for a period of not less than two years: Ø Provided
that such officer shall not be entitled to appear before any proceedings
under this Act for a period of one year from the date of his retirement or
resignation; or Ø any
person who has been authorised to act as a goods and services tax
practitioner on behalf of the concerned registered person. |
(3) No person,— Ø who
has been dismissed or removed from Government service; or Ø who
is convicted of an offence connected with any proceedings under this Act, the
State Goods and Services Tax Act, the Integrated Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, or under the existing law
or under any of the Acts passed by a State Legislature dealing with the
imposition of taxes on sale of goods or supply of goods or services or both;
or Ø who
is found guilty of misconduct by the prescribed authority; Ø who
has been adjudged as an insolvent, (4) Any person who has been disqualified under the
provisions of the State Goods and Services Tax Act or the Union Territory
Goods and Services Tax Act shall be deemed to be disqualified under this Act |
117. Appeal to High Court. Ø has
not been determined by the State Bench or Area Benches; or Ø has
been wrongly determined by the State Bench or Area Benches, by reason of a
decision on such question of law as herein referred to in sub-section (3). |
(6) Where an appeal has been filed before the High Court,
it shall be heard by a Bench of not less than two Judges of the High Court,
and shall be decided in accordance with the opinion of such Judges or of the
majority, if any, of such Judges. |
118. Appeal to Supreme Court. Ø from
any order passed by the National Bench or Regional Benches of the Appellate
Tribunal; or Ø from
any judgment or order passed by the High Court in an appeal made under
section 117 in any case which, on its own motion or on an application made by
or on behalf of the party aggrieved, immediately after passing of the
judgment or order, the High Court certifies to be a fit one for appeal to the
Supreme Court. (2) The provisions of the Code of Civil Procedure, 1908,
relating to appeals to the Supreme Court shall, so far as may be, apply in
the case of appeals under this section as they apply in the case of appeals
from decrees of a High Court. |
119. Sums due to be paid notwithstanding appeal, etc. |
120. Appeal not to be filed in certain cases. |
121. Nonappealable decisions and orders. Ø an
order of the Commissioner or other authority empowered to direct transfer of
proceedings from one officer to another officer; or Ø an
order pertaining to the seizure or retention of books of account, register
and other documents; or Ø an
order sanctioning prosecution under this Act; or Ø an
order passed under section 80. |
- CHAPTER XIX - OFFENCES AND PENALTIES
122. Penalty for certain offences. |
(2) Any registered person who supplies any goods or
services or both on which any tax has not been paid or short-paid or
erroneously refunded, or where the input tax credit has been wrongly availed
or utilised,— Ø for
any reason, other than the reason of fraud or any wilful misstatement or
suppression of facts to evade tax, shall be liable to a penalty of ten
thousand rupees or ten per cent. of the tax due from such person, whichever
is higher; Ø for
reason of fraud or any wilful misstatement or suppression of facts to evade
tax, shall be liable to a penalty equal to ten thousand rupees or the tax due
from such person, whichever is higher. |
(3) Any person who–– Ø aids
or abets any of the offences specified in clauses (i) to (xxi) of sub-section
(1); Ø acquires
possession of, or in any way concerns himself in transporting, removing,
depositing, keeping, concealing, supplying, or purchasing or in any other
manner deals with any goods which he knows or has reasons to believe are
liable to confiscation under this Act or the rules made thereunder; Ø receives
or is in any way concerned with the supply of, or in any other manner deals
with any supply of services which he knows or has reasons to believe are in
contravention of any provisions of this Act or the rules made thereunder; Ø fails
to appear before the officer of central tax, when issued with a summon for
appearance to give evidence or produce a document in an inquiry; Ø fails
to issue invoice in accordance with the provisions of this Act or the rules
made thereunder or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to
twenty-five thousand rupees. |
123. Penalty for failure to furnish information return. |
124. Fine for failure to furnish statistics. Ø without
reasonable cause fails to furnish such information or return as may be
required under that section, or Ø wilfully
furnishes or causes to furnish any information or return which he knows to be
false, he shall be punishable with a fine which may extend to
ten thousand rupees and in case of a continuing offence to a further fine
which may extend to one hundred rupees for each day after the first day
during which the offence continues subject to a maximum limit of twentyfive
thousand rupees. |
125. General penalty. |
126. General disciplines related to penalty. |
Explanation.––
For the purpose of this sub-section,–– Ø a
breach shall be considered a 'minor breach' if the amount of tax involved is
less than five thousand rupees; Ø an
omission or mistake in documentation shall be considered to be easily
rectifiable if the same is an error apparent on the face of record. (2) The penalty imposed under this Act shall depend on
the facts and circumstances of each case and shall be commensurate with the
degree and severity of the breach. |
127. Power to impose penalty in certain cases. |
128. Power to waive penalty or fee or both. |
129. Detention, seizure and release of goods and
conveyances in transit. Ø on
payment of the applicable tax and penalty equal to one hundred per cent. of
the tax payable on such goods and, in case of exempted goods, on payment of
an amount equal to two per cent. of the value of goods or twenty-five
thousand rupees, whichever is less, where the owner of the goods comes
forward for payment of such tax and penalty; Ø on
payment of the applicable tax and penalty equal to the fifty per cent. of the
value of the goods reduced by the tax amount paid thereon and, in case of
exempted goods, on payment of an amount equal to five per cent. of the value
of goods or twenty-five thousand rupees, whichever is less, where the owner
of the goods does not come forward for payment of such tax and penalty; Ø upon
furnishing a security equivalent to the amount payable under clause (a) or
clause (b) in such form and manner as may be prescribed: |
Provided that no such goods or conveyance shall be
detained or seized without serving an order of detention or seizure on the
person transporting the goods. |
(2) The provisions of sub-section (6) of section 67
shall, mutatis mutandis, apply for detention and seizure of goods and
conveyances. |
Provided that where the detained or seized goods are
perishable or hazardous in nature or are likely to depreciate in value with
passage of time, the said period of seven days may be reduced by the proper
officer. |
130. Confiscation of goods or conveyances and levy of
penalty. |
Provided that such fine leviable shall not exceed the
market value of the goods confiscated, less the tax chargeable thereon: |
Provided further that the aggregate of such fine and
penalty leviable shall not be less than the amount of penalty leviable under
sub-section (1) of section 129: |
Provided also that where any such conveyance is used for
the carriage of the goods or passengers for hire, the owner of the conveyance
shall be given an option to pay in lieu of the confiscation of the conveyance
a fine equal to the tax payable on the goods being transported thereon. |
(3) Where any fine in lieu of confiscation of goods or
conveyance is imposed under sub-section (2), the owner of such goods or
conveyance or the person referred to in sub-section (1), shall, in addition,
be liable to any tax, penalty and charges payable in respect of such goods or
conveyance. |
131. Confiscation or penalty not to interfere with other
punishments. |
132. Punishment for certain offences. Ø supplies
any goods or services or both without issue of any invoice, in violation of
the provisions of this Act or the rules made thereunder, with the intention
to evade tax; Ø issues
any invoice or bill without supply of goods or services or both in violation
of the provisions of this Act, or the rules made thereunder leading to
wrongful availment or utilisation of input tax credit or refund of tax; Ø avails
input tax credit using such invoice or bill referred to in clause (b); Ø collects
any amount as tax but fails to pay the same to the Government beyond a period
of three months from the date on which such payment becomes due; Ø evades
tax, fraudulently avails input tax credit or fraudulently obtains refund and
where such offence is not covered under clauses (a) to (d); Ø falsifies
or substitutes financial records or produces fake accounts or documents or
furnishes any false information with an intention to evade payment of tax due
under this Act; Ø obstructs
or prevents any officer in the discharge of his duties under this Act; Ø acquires
possession of, or in any way concerns himself in transporting, removing,
depositing, keeping, concealing, supplying, or purchasing or in any other
manner deals with, any goods which he knows or has reasons to believe are
liable to confiscation under this Act or the rules made thereunder; Ø receives
or is in any way concerned with the supply of, or in any other manner deals
with any supply of services which he knows or has reasons to believe are in
contravention of any provisions of this Act or the rules made thereunder; Ø tampers
with or destroys any material evidence or documents; Ø fails
to supply any information which he is required to supply under this Act or
the rules made thereunder or (unless with a reasonable belief, the burden of
proving which shall be upon him, that the information supplied by him is
true) supplies false information; or Ø attempts
to commit, or abets the commission of any of the offences mentioned in
clauses (a) to (k) of this section, shall be punishable–– |
Explanation.— For
the purposes of this section, the term "tax" shall include the
amount of tax evaded or the amount of input tax credit wrongly availed or
utilised or refund wrongly taken under the provisions of this Act, the State
Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act and cess levied under the Goods
and Services Tax (Compensation to States) Act. |
133.Liability of officers and certain other persons. |
(2) Any person— Ø who
is a Government servant shall not be prosecuted for any offence under this
section except with the previous sanction of the Government; Ø who
is not a Government servant shall not be prosecuted for any offence under
this section except with the previous sanction of the Commissioner |
134. Cognizance of offences. |
135. Presumption of culpable mental state. |
136. Relevancy of statements under certain circumstances. Ø when
the person who made the statement is dead or cannot be found, or is incapable
of giving evidence, or is kept out of the way by the adverse party, or whose
presence cannot be obtained without an amount of delay or expense which,
under the circumstances of the case, the court considers unreasonable; or Ø when
the person who made the statement is examined as a witness in the case before
the court and the court is of the opinion that, having regard to the
circumstances of the case, the statement should be admitted in evidence in
the interest of justice. |
137. Offences by companies. |
Explanation.––For the purposes of
this section,–– (i) "company" means a body corporate and includes a
firm or other association of individuals; and |
138. Compounding of offences. Ø a
person who has been allowed to compound once in respect of any of the
offences specified in clauses (a) to (f) of sub-section (1) of section 132
and the offences specified in clause (l) which are relatable to offences
specified in clauses (a) to (f) of the said sub-section; Ø a
person who has been allowed to compound once in respect of any offence, other
than those in clause (a), under this Act or under the provisions of any State
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act
or the Integrated Goods and Services Tax Act in respect of supplies of value
exceeding one crore rupees; Ø a
person who has been accused of committing an offence under this Act which is
also an offence under any other law for the time being in force; Ø a
person who has been convicted for an offence under this Act by a court; Ø a
person who has been accused of committing an offence specified in clause (g)
or clause (j) or clause (k) of sub-section (1) of section 132; and Ø any
other class of persons or offences as may be prescribed: |
Provided further that any compounding allowed under the
provisions of this section shall not affect the proceedings, if any,
instituted under any other law: |
Provided also that compounding shall be allowed only
after making payment of tax, interest and penalty involved in such offences. |
(2) The amount for compounding of offences under this
section shall be such as may be prescribed, subject to the minimum amount not
being less than ten thousand rupees or fifty per cent. of the tax involved,
whichever is higher, and the maximum amount not being less than thirty
thousand rupees or one hundred and fifty per cent. of the tax, whichever is
higher. |
- CHAPTER XX - TRANSITIONAL PROVISIONS
139. Migration of existing taxpayers. |
140. Transitional arrangements for input tax credit. |
Provided that the registered person shall not be allowed
to take credit unless the said credit was admissible as CENVAT credit under
the existing law and is also admissible as input tax credit under this Act. |
Explanation.––For
the purposes of this sub-section, the expression "unavailed CENVAT
credit" means the amount that remains after subtracting the amount of
CENVAT credit already availed in respect of capital goods by the taxable
person under the existing law from the aggregate amount of CENVAT credit to
which the said person was entitled in respect of the said capital goods under
the existing law. |
(3) A registered person, who was not liable to be
registered under the existing law, or who was engaged in the manufacture of
exempted goods or provision of exempted services, or who was providing works
contract service and was availing of the benefit of notification No.
26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a
second stage dealer or a registered importer or a depot of a manufacturer,
shall be entitled to take, in his electronic credit ledger, credit of
eligible duties in respect of inputs held in stock and inputs contained in
semi-finished or finished goods held in stock on the appointed day subject to
the following conditions, namely:–– |
Provided that where a registered person, other than a
manufacturer or a supplier of services, is not in possession of an invoice or
any other documents evidencing payment of duty in respect of inputs, then,
such registered person shall, subject to such conditions, limitations and
safeguards as may be prescribed, including that the said taxable person shall
pass on the benefit of such credit by way of reduced prices to the recipient,
be allowed to take credit at such rate and in such manner as may be
prescribed. |
(4) A registered person, who was engaged in the
manufacture of taxable as well as exempted goods under the Central Excise
Act, 1944 or provision of taxable as well as exempted services under Chapter
V of the Finance Act, 1994, but which are liable to tax under this Act, shall
be entitled to take, in his electronic credit ledger,— Ø the
amount of CENVAT credit carried forward in a return furnished under the
existing law by him in accordance with the provisions of sub-section (1); and Ø the
amount of CENVAT credit of eligible duties in respect of inputs held in stock
and inputs contained in semi-finished or finished goods held in stock on the
appointed day, relating to such exempted goods or services, in accordance
with the provisions of sub-section (3). (5) A registered person shall be entitled to take, in his
electronic credit ledger, credit of eligible duties and taxes in respect of
inputs or input services received on or after the appointed day but the duty
or tax in respect of which has been paid by the supplier under the existing
law, subject to the condition that the invoice or any other duty or tax
paying document of the same was recorded in the books of account of such
person within a period of thirty days from the appointed day: |
Provided that the period of thirty days may, on
sufficient cause being shown, be extended by the Commissioner for a further
period not exceeding thirty days: |
Provided further that said registered person shall furnish
a statement, in such manner as may be prescribed, in respect of credit that
has been taken under this sub-section. |
(6) A registered person, who was either paying tax at a
fixed rate or paying a fixed amount in lieu of the tax payable under the existing
law shall be entitled to take, in his electronic credit ledger, credit of
eligible duties in respect of inputs held in stock and inputs contained in
semi-finished or finished goods held in stock on the appointed day subject to
the following conditions, namely:–– |
Provided that if the registered person furnishes his
return for the period ending with the day immediately preceding the appointed
day within three months of the appointed day, such credit shall be allowed
subject to the condition that the said return is either an original return or
a revised return where the credit has been reduced from that claimed earlier: |
Provided further that the registered person shall not be
allowed to take credit unless the said amount is admissible as input tax
credit under this Act: |
Provided also that such credit may be transferred to any
of the registered persons having the same Permanent Account Number for which
the centralised registration was obtained under the existing law. |
(9) Where any CENVAT credit availed for the input
services provided under the existing law has been reversed due to non-payment
of the consideration within a period of three months, such credit can be
reclaimed subject to the condition that the registered person has made the
payment of the consideration for that supply of services within a period of
three months from the appointed day. |
Explanation 2.— For the purposes of
sub-section (5), the expression "eligible duties and taxes" means–– |
141. Transitional provisions relating to job work. |
Provided that the period of six months may, on sufficient
cause being shown, be extended by the Commissioner for a further period not
exceeding two months: |
Provided further that if such inputs are not returned
within the period specified in this sub-section, the input tax credit shall
be liable to be recovered in accordance with the provisions of clause (a) of
sub-section (8) of section 142. |
(2) Where any semi-finished goods had been removed from
the place of business to any other premises for carrying out certain
manufacturing processes in accordance with the provisions of existing law
prior to the appointed day and such goods (hereafter in this section referred
to as "the said goods") are returned to the said place on or after
the appointed day, no tax shall be payable, if the said goods, after
undergoing manufacturing processes or otherwise, are returned to the said
place within six months from the appointed day: |
Provided that the period of six months may, on sufficient
cause being shown, be extended by the Commissioner for a further period not
exceeding two months: |
Provided further that if the said goods are not returned
within the period specified in this sub-section, the input tax credit shall
be liable to be recovered in accordance with the provisions of clause (a) of
sub-section (8) of section 142: |
Provided also that the manufacturer may, in accordance
with the provisions of the existing law, transfer the said goods to the
premises of any registered person for the purpose of supplying therefrom on
payment of tax in India or without payment of tax for exports within the
period specified in this sub-section. |
(3) Where any excisable goods manufactured at a place of
business had been removed without payment of duty for carrying out tests or
any other process not amounting to manufacture, to any other premises,
whether registered or not, in accordance with the provisions of existing law
prior to the appointed day and such goods, are returned to the said place on
or after the appointed day, no tax shall be payable if the said goods, after
undergoing tests or any other process, are returned to the said place within
six months from the appointed day: |
Provided that the period of six months may, on sufficient
cause being shown, be extended by the Commissioner for a further period not
exceeding two months: |
Provided further that if the said goods are not returned
within the period specified in this sub-section, the input tax credit shall
be liable to be recovered in accordance with the provisions of clause (a) of
sub-section (8) of section 142: |
Provided also that the manufacturer may, in accordance
with the provisions of the existing law, transfer the said goods from the
said other premises on payment of tax in India or without payment of tax for
exports within the period specified in this sub-section. |
(4) The tax under sub-sections (1), (2) and (3) shall not
be payable, only if the manufacturer and the job worker declare the details
of the inputs or goods held in stock by the job worker on behalf of the
manufacturer on the appointed day in such form and manner and within such
time as may be prescribed. |
142. Miscellaneous transitional provisions. |
Provided that if the said goods are returned by a
registered person, the return of such goods shall be deemed to be a supply. |
(2) Ø where,
in pursuance of a contract entered into prior to the appointed day, the price
of any goods or services or both is revised upwards on or after the appointed
day, the registered person who had removed or provided such goods or services
or both shall issue to the recipient a supplementary invoice or debit note,
containing such particulars as may be prescribed, within thirty days of such
price revision and for the purposes of this Act such supplementary invoice or
debit note shall be deemed to have been issued in respect of an outward
supply made under this Act; Ø where,
in pursuance of a contract entered into prior to the appointed day, the price
of any goods or services or both is revised downwards on or after the
appointed day, the registered person who had removed or provided such goods
or services or both may issue to the recipient a credit note, containing such
particulars as may be prescribed, within thirty days of such price revision
and for the purposes of this Act such credit note shall be deemed to have
been issued in respect of an outward supply made under this Act: |
Provided that the registered person shall be allowed to
reduce his tax liability on account of issue of the credit note only if the
recipient of the credit note has reduced his input tax credit corresponding
to such reduction of tax liability. |
(3) Every claim for refund filed by any person before, on
or after the appointed day, for refund of any amount of CENVAT credit, duty,
tax, interest or any other amount paid under the existing law, shall be
disposed of in accordance with the provisions of existing law and any amount
eventually accruing to him shall be paid in cash, notwithstanding anything to
the contrary contained under the provisions of existing law other than the
provisions of sub-section (2) of section 11B of the Central Excise Act, 1944: |
Provided that where any claim for refund of CENVAT credit
is fully or partially rejected, the amount so rejected shall lapse: |
Provided further that no refund shall be allowed of any
amount of CENVAT credit where the balance of the said amount as on the
appointed day has been carried forward under this Act. |
(4) Every claim for refund filed after the appointed day
for refund of any duty or tax paid under existing law in respect of the goods
or services exported before or after the appointed day, shall be disposed of
in accordance with the provisions of the existing law: |
Provided that where any claim for refund of CENVAT credit
is fully or partially rejected, the amount so rejected shall lapse: |
Provided further that no refund shall be allowed of any
amount of CENVAT credit where the balance of the said amount as on the
appointed day has been carried forward under this Act. |
(5) Every claim filed by a person after the appointed day
for refund of tax paid under the existing law in respect of services not
provided shall be disposed of in accordance with the provisions of existing
law and any amount eventually accruing to him shall be paid in cash,
notwithstanding anything to the contrary contained under the provisions of
existing law other than the provisions of sub-section (2) of section 11B of
the Central Excise Act, 1944. |
(6) Ø every
proceeding of appeal, review or reference relating to a claim for CENVAT
credit initiated whether before, on or after the appointed day under the
existing law shall be disposed of in accordance with the provisions of
existing law, and any amount of credit found to be admissible to the claimant
shall be refunded to him in cash, notwithstanding anything to the contrary
contained under the provisions of existing law other than the provisions of
sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount
rejected, if any, shall not be admissible as input tax credit under this Act: Ø Provided
that no refund shall be allowed of any amount of CENVAT credit where the
balance of the said amount as on the appointed day has been carried forward
under this Act; Ø every
proceeding of appeal, review or reference relating to recovery of CENVAT
credit initiated whether before, on or after the appointed day under the
existing law shall be disposed of in accordance with the provisions of existing
law and if any amount of credit becomes recoverable as a result of such
appeal, review or reference, the same shall, unless recovered under the
existing law, be recovered as an arrear of tax under this Act and the amount
so recovered shall not be admissible as input tax credit under this Act. |
(7) Ø every
proceeding of appeal, review or reference relating to any output duty or tax
liability initiated whether before, on or after the appointed day under the
existing law, shall be disposed of in accordance with the provisions of the
existing law, and if any amount becomes recoverable as a result of such
appeal, review or reference, the same shall, unless recovered under the
existing law, be recovered as an arrear of duty or tax under this Act and the
amount so recovered shall not be admissible as input tax credit under this
Act. Ø every
proceeding of appeal, review or reference relating to any output duty or tax
liability initiated whether before, on or after the appointed day under the
existing law, shall be disposed of in accordance with the provisions of the
existing law, and any amount found to be admissible to the claimant shall be
refunded to him in cash, notwithstanding anything to the contrary contained
under the provisions of existing law other than the provisions of sub-section
(2) of section 11B of the Central Excise Act, 1944 and the amount rejected,
if any, shall not be admissible as input tax credit under this Act. |
(8) Ø where
in pursuance of an assessment or adjudication proceedings instituted, whether
before, on or after the appointed day, under the existing law, any amount of
tax, interest, fine or penalty becomes recoverable from the person, the same
shall, unless recovered under the existing law, be recovered as an arrear of
tax under this Act and the amount so recovered shall not be admissible as
input tax credit under this Act; Ø where
in pursuance of an assessment or adjudication proceedings instituted, whether
before, on or after the appointed day, under the existing law, any amount of
tax, interest, fine or penalty becomes refundable to the taxable person, the
same shall be refunded to him in cash under the said law, notwithstanding
anything to the contrary contained in the said law other than the provisions
of sub-section (2) of section 11B of the Central Excise Act, 1944 and the
amount rejected, if any, shall not be admissible as input tax credit under
this Act. |
(9) Ø where
any return, furnished under the existing law, is revised after the appointed
day and if, pursuant to such revision, any amount is found to be recoverable
or any amount of CENVAT credit is found to be inadmissible, the same shall,
unless recovered under the existing law, be recovered as an arrear of tax
under this Act and the amount so recovered shall not be admissible as input
tax credit under this Act; Ø where
any return, furnished under the existing law, is revised after the appointed
day but within the time limit specified for such revision under the existing
law and if, pursuant to such revision, any amount is found to be refundable
or CENVAT credit is found to be admissible to any taxable person, the same
shall be refunded to him in cash under the existing law, notwithstanding
anything to the contrary contained in the said law other than the provisions
of sub-section (2) of section 11B of the Central Excise Act, 1944 and the
amount rejected, if any, shall not be admissible as input tax credit under
this Act. |
(10) Save as otherwise provided in this Chapter, the
goods or services or both supplied on or after the appointed day in pursuance
of a contract entered into prior to the appointed day shall be liable to tax
under the provisions of this Act. |
(11) Ø notwithstanding
anything contained in section 12, no tax shall be payable on goods under this
Act to the extent the tax was leviable on the said goods under the Value
Added Tax Act of the State; Ø notwithstanding
anything contained in section 13, no tax shall be payable on services under
this Act to the extent the tax was leviable on the said services under
Chapter V of the Finance Act, 1994; Ø where
tax was paid on any supply both under the Value Added Tax Act and under
Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and
the taxable person shall be entitled to take credit of value added tax or
service tax paid under the existing law to the extent of supplies made after
the appointed day and such credit shall be calculated in such manner as may
be prescribed. |
(12) Where any goods sent on approval basis, not earlier
than six months before the appointed day, are rejected or not approved by the
buyer and returned to the seller on or after the appointed day, no tax shall
be payable thereon if such goods are returned within six months from the
appointed day: |
Provided that the said period of six months may, on
sufficient cause being shown, be extended by the Commissioner for a further
period not exceeding two months: |
Provided further that the tax shall be payable by the
person returning the goods if such goods are liable to tax under this Act,
and are returned after a period specified in this sub-section: |
Provided also that tax shall be payable by the person who
has sent the goods on approval basis if such goods are liable to tax under
this Act, and are not returned within a period specified in this sub-section |
(13) Where a supplier has made any sale of goods in
respect of which tax was required to be deducted at source under any law of a
State or Union territory relating to Value Added Tax and has also issued an
invoice for the same before the appointed day, no deduction of tax at source
under section 51 shall be made by the deductor under the said section where
payment to the said supplier is made on or after the appointed day |
Explanation.––For
the purposes of this Chapter, the expressions "capital goods", "Central
Value Added Tax (CENVAT) credit", "first stage dealer",
"second stage dealer", or "manufacture" shall have the
same meaning as respectively assigned to them in the Central Excise Act, 1944
or the rules made thereunder |
- CHAPTER XXI - MISCELLANEOUS
143. Job work procedure. Ø bring
back inputs, after completion of job work or otherwise, or capital goods,
other than moulds and dies, jigs and fixtures, or tools, within one year and
three years, respectively, of their being sent out, to any of his place of
business, without payment of tax; Ø supply
such inputs, after completion of job work or otherwise, or capital goods,
other than moulds and dies, jigs and fixtures, or tools, within one year and
three years, respectively, of their being sent out from the place of business
of a job worker on payment of tax within India, or with or without payment of
tax for export, as the case may be: |
Provided that the principal shall not supply the goods
from the place of business of a job worker in accordance with the provisions
of this clause unless the said principal declares the place of business of
the job worker as his additional place of business except in a case— |
(2) The responsibility for keeping proper accounts for
the inputs or capital goods shall lie with the principal. |
Explanation.––For
the purposes of job work, input includes intermediate goods arising from any
treatment or process carried out on the inputs by the principal or the job
worker. |
144. Presumption as to documents in certain cases. Ø unless
the contrary is proved by such person, presume— Ø admit
the document in evidence notwithstanding that it is not duly stamped, if such
document is otherwise admissible in evidence. |
145. Admissibility of micro films, facsimile copies of
documents and computer printouts as documents and as evidence. Ø a
micro film of a document or the reproduction of the image or images embodied
in such micro film (whether enlarged or not); or Ø a
facsimile copy of a document; or Ø a
statement contained in a document and included in a printed material produced
by a computer, subject to such conditions as may be prescribed; or Ø any
information stored electronically in any device or media, including any hard
copies made of such information, shall be deemed to be a document for the purposes of this
Act and the rules made thereunder and shall be admissible in any proceedings
thereunder, without further proof or production of the original, as evidence
of any contents of the original or of any fact stated therein of which direct
evidence would be admissible. |
(2) In any proceedings under this Act or the rules made
thereunder, where it is desired to give a statement in evidence by virtue of
this section, a certificate,— Ø identifying
the document containing the statement and describing the manner in which it
was produced; Ø giving
such particulars of any device involved in the production of that document as
may be appropriate for the purpose of showing that the document was produced
by a computer, shall be evidence of any matter stated in the certificate
and for the purposes of this sub-section it shall be sufficient for a matter
to be stated to the best of the knowledge and belief of the person stating
it. |
146. Common Portal. |
147. Deemed exports. |
148. Special procedure for certain processes. |
149. Goods and services tax compliance rating. |
150. Obligation to furnish information return. Ø a
taxable person; or Ø a
local authority or other public body or association; or Ø any
authority of the State Government responsible for the collection of value
added tax or sales tax or State excise duty or an authority of the Central
Government responsible for the collection of excise duty or customs duty; or Ø an
income tax authority appointed under the provisions of the Income-tax Act,
1961; or Ø a
banking company within the meaning of clause (a) of section 45A of the
Reserve Bank of India Act, 1934; or Ø a
State Electricity Board or an electricity distribution or transmission
licensee under the Electricity Act, 2003, or any other entity entrusted with
such functions by the Central Government or the State Government; or Ø the
Registrar or Sub-Registrar appointed under section 6 of the Registration Act,
1908; or Ø a
Registrar within the meaning of the Companies Act, 2013; or Ø the
registering authority empowered to register motor vehicles under the Motor
Vehicles Act, 1988; or Ø the
Collector referred to in clause (c) of section 3 of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013; or Ø the
recognised stock exchange referred to in clause (f) of section 2 of the
Securities Contracts (Regulation) Act, 1956; or Ø a
depository referred to in clause (e) of sub-section (1) of section 2 of the
Depositories Act, 1996; or Ø an
officer of the Reserve Bank of India as constituted under section 3 of the
Reserve Bank of India Act, 1934; or Ø the
Goods and Services Tax Network, a company registered under the Companies Act,
2013; or Ø a
person to whom a Unique Identity Number has been granted under sub-section
(9) of section 25; or Ø any
other person as may be specified, on the recommendations of the Council, by
the Government, who is responsible for maintaining record of registration
or statement of accounts or any periodic return or document containing
details of payment of tax and other details of transaction of goods or
services or both or transactions related to a bank account or consumption of
electricity or transaction of purchase, sale or exchange of goods or property
or right or interest in a property under any law for the time being in force,
shall furnish an information return of the same in respect of such periods,
within such time, in such form and manner and to such authority or agency as
may be prescribed. |
(2) Where the Commissioner, or an officer authorised by
him in this behalf, considers that the information furnished in the
information return is defective, he may intimate the defect to the person who
has furnished such information return and give him an opportunity of
rectifying the defect within a period of thirty days from the date of such
intimation or within such further period which, on an application made in
this behalf, the said authority may allow and if the defect is not rectified
within the said period of thirty days or, the further period so allowed,
then, notwithstanding anything contained in any other provisions of this Act,
such information return shall be treated as not furnished and the provisions
of this Act shall apply. |
151. Power to collect statistics. |
151. Bar on disclosure of information. |
153. Taking assistance from an expert. |
154. Power to take samples. |
155. Burden of proof. |
156. Persons deemed to be public servants. |
157. Protection of action taken under this Act. |
158. Disclosure of information by a public servant. Ø any
particulars in respect of any statement, return, accounts, documents,
evidence, affidavit or deposition, for the purpose of any prosecution under
the Indian Penal Code or the Prevention of Corruption Act, 1988, or any other
law for the time being in force; or Ø any
particulars to the Central Government or the State Government or to any
person acting in the implementation of this Act, for the purposes of carrying
out the objects of this Act; or Ø any
particulars when such disclosure is occasioned by the lawful exercise under
this Act of any process for the service of any notice or recovery of any
demand; or Ø any
particulars to a civil court in any suit or proceedings, to which the
Government or any authority under this Act is a party, which relates to any
matter arising out of any proceedings under this Act or under any other law
for the time being in force authorising any such authority to exercise any
powers thereunder; or Ø any
particulars to any officer appointed for the purpose of audit of tax receipts
or refunds of the tax imposed by this Act; or Ø any
particulars where such particulars are relevant for the purposes of any
inquiry into the conduct of any officer appointed or authorised under this
Act, to any person or persons appointed as an inquiry officer under any law
for the time being in force; or Ø any
such particulars to an officer of the Central Government or of any State
Government, as may be necessary for the purpose of enabling that Government
to levy or realise any tax or duty; or Ø any
particulars when such disclosure is occasioned by the lawful exercise by a
public servant or any other statutory authority, of his or its powers under
any law for the time being in force; or Ø any
particulars relevant to any inquiry into a charge of misconduct in connection
with any proceedings under this Act against a practising advocate, a tax
practitioner, a practising cost accountant, a practising chartered
accountant, a practising company secretary to the authority empowered to take
disciplinary action against the members practising the profession of a legal
practitioner, a cost accountant, a chartered accountant or a company
secretary, as the case may be; or Ø any
particulars to any agency appointed for the purposes of data entry on any
automated system or for the purpose of operating, upgrading or maintaining
any automated system where such agency is contractually bound not to use or
disclose such particulars except for the aforesaid purposes; or Ø any
particulars to an officer of the Government as may be necessary for the
purposes of any other law for the time being in force; or Ø any
information relating to any class of taxable persons or class of transactions
for publication, if, in the opinion of the Commissioner, it is desirable in
the public interest, to publish such information. |
159. Publication of information in respect of persons in
certain cases. |
Explanation.––In the case of firm,
company or other association of persons, the names of the partners of the
firm, directors, managing agents, secretaries and treasurers or managers of
the company, or the members of the association, as the case may be, may also
be published if, in the opinion of the Commissioner, or any other officer
authorised by him in this behalf, circumstances of the case justify it. |
160. Assessment proceedings, etc., not to be invalid on
certain grounds. |
161. Rectification of errors apparent on the face of
record. |
PProvided that no such rectification shall be done after
a period of six months from the date of issue of such decision or order or
notice or certificate or any other document: |
Provided further that the said period of six months shall
not apply in such cases where the rectification is purely in the nature of
correction of a clerical or arithmetical error, arising from any accidental
slip or omission: |