CGST Acts 2017

REGISTERED  NO. DL—(N)04/0007/2003—17

EXTRAORDINARY

PUBLISHED  BY AUTHORITY

 

No. 12]     NEW DELHI, WEDNESDAY, APRIL, 12, 2017/CHAITRA 22, 1939 (SAKA)

 

 

MINISTRY OF LAW AND JUSTICE

(Leg­isla­tive Department)

New Del­hi, the 12th April, 2017/Chaitra 22, 1939 (Saka) The fol­low­ing Act of        Par­lia­ment received the assent of  the Pres­i­dent on the

12th April, 2017, and is here­by pub­lished for gen­er­al information:—

 

THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 NO. 12 OF 2017

[12th April, 2017.]

 

AnAct to make a pro­vi­sion for levy and col­lec­tion of tax on intra-State sup­ply of goods or ser­vices or both by the Cen­tral Gov­ern­ment and for mat­ters con­nect­ed there­with or inci­den­tal thereto.

BE it enact­ed by Par­lia­ment in the Six­ty-eighth Year of the Repub­lic of India as follows:—

 

 

CHAPTER I PRELIMINARY

1. (1) This Act may be called the Cen­tral Goods and Ser­vices Tax Act,

• It extends to the whole of India except the State of Jam­mu and
• It shall come into force on such date as the Cen­tral Gov­ern­ment may, by noti­fi­ca­tion in the Offi­cial Gazette, appoint:

 

 

 

Short title, extent and

com­mence­ment.

Def­i­n­i­tions.

Pro­vid­ed that dif­fer­ent dates may be appoint­ed for dif­fer­ent pro­vi­sions of this Act and any ref­er­ence in any such pro­vi­sion to the com­mence­ment of this Act shall be con­strued as a ref­er­ence to the com­ing into force of that provision.

2. In this Act, unless the con­text oth­er­wise requires,–– 
   • “action­able claim” shall have the same mean­ing as assigned to it in sec­tion 3 of the Trans­fer of Prop­er­ty Act, 1882;
   • “address of deliv­ery” means the address of the recip­i­ent of goods or ser­vices or both indi­cat­ed on the tax invoice issued by a reg­is­tered per­son for deliv­ery of such goods or ser­vices or both;
   • “address on record” means the address of the recip­i­ent as avail­able in the records of the supplier;
   • “adju­di­cat­ing author­i­ty” means any author­i­ty, appoint­ed or autho­rised to pass any order or deci­sion under this Act, but does not include the Cen­tral Board of Excise and Cus­toms, the Revi­sion­al Author­i­ty, the Author­i­ty for Advance Rul­ing, the Appel­late Author­i­ty for Advance Rul­ing, the Appel­late Author­i­ty and the Appel­late Tribunal;
   • “agent” means a per­son, includ­ing a fac­tor, bro­ker, com­mis­sion agent, arha­tia, del credere agent, an auc­tion­eer or any oth­er mer­can­tile agent, by what­ev­er name called, who car­ries on the busi­ness of sup­ply or receipt of goods or ser­vices or both on behalf of another;
   • “aggre­gate turnover” means the aggre­gate val­ue of all tax­able sup­plies (exclud­ing the val­ue of inward sup­plies on which tax is payable by a per­son on reverse charge basis), exempt sup­plies, exports of goods or ser­vices or both and inter-State sup­plies of per­sons hav­ing the same Per­ma­nent Account Num­ber, to be com­put­ed on all India basis but excludes cen­tral tax, State tax, Union ter­ri­to­ry tax, inte­grat­ed tax and cess;
   • “agri­cul­tur­ist” means an indi­vid­ual or a Hin­du Undi­vid­ed Fam­i­ly who under­takes cul­ti­va­tion of land— 
     • by own labour, or
     • by the labour of fam­i­ly, or
     • 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;
   • “Appel­late Author­i­ty” means an author­i­ty appoint­ed or autho­rised to hear appeals as referred to in sec­tion 107;
   • “Appel­late Tri­bunal” means the Goods and Ser­vices Tax Appel­late Tri­bunal con­sti­tut­ed under sec­tion 109;
   • “appoint­ed day” means the date on which the pro­vi­sions of this Act shall come into force;
   • “assess­ment” means deter­mi­na­tion of tax lia­bil­i­ty under this Act and includes self-assess­ment, re-assess­ment, pro­vi­sion­al assess­ment, sum­ma­ry assess­ment and best judg­ment assessment;
   • “asso­ci­at­ed enter­pris­es” shall have the same mean­ing as assigned to it in sec­tion 92A of the Income-tax Act, 1961;
   • “audit” means the exam­i­na­tion of records, returns and oth­er doc­u­ments main­tained or fur­nished by the reg­is­tered per­son under this Act or the rules made there­un­der or under any oth­er law for the time being in force to ver­i­fy the cor­rect­ness of turnover declared, tax­es paid, refund claimed and input tax cred­it availed, and to assess his com­pli­ance with the pro­vi­sions of this Act or the rules made thereunder;
   • “autho­rised bank” shall mean a bank or a branch of a bank autho­rised by the Gov­ern­ment to col­lect the tax or any oth­er amount payable under this Act;

• “autho­rised rep­re­sen­ta­tive” means the rep­re­sen­ta­tive as referred to in sec­tion 116;
• “Board” means the Cen­tral Board of Excise and Cus­toms con­sti­tut­ed under the Cen­tral Boards of Rev­enue Act, 1963;
• “busi­ness” includes–– 
  • any trade, com­merce, man­u­fac­ture, pro­fes­sion, voca­tion, adven­ture, wager or any oth­er sim­i­lar activ­i­ty, whether or not it is for a pecu­niary benefit;
  • any activ­i­ty or trans­ac­tion in con­nec­tion with or inci­den­tal or ancil­lary to sub-clause (a);
  • any activ­i­ty or trans­ac­tion in the nature of sub-clause (a), whether or not there is vol­ume, fre­quen­cy, con­ti­nu­ity or reg­u­lar­i­ty of such transaction;
  • sup­ply or acqui­si­tion of goods includ­ing cap­i­tal goods and ser­vices in con­nec­tion with com­mence­ment or clo­sure of business;
  • 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;
  • admis­sion, for a con­sid­er­a­tion, of per­sons to any premises;
  • 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;
  • ser­vices pro­vid­ed by a race club by way of total­isator or a licence to book mak­er in such club ; and
  • any activ­i­ty or trans­ac­tion under­tak­en by the Cen­tral Gov­ern­ment, a State Gov­ern­ment or any local author­i­ty in which they are engaged as pub­lic authorities;
• “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

Expla­na­tion.––For the pur­pos­es of this clause, fac­tors that should be con­sid­ered in deter­min­ing whether goods or ser­vices are relat­ed include––

• the nature of the goods or services;
• the nature of the pro­duc­tion processes;
• the type or class of cus­tomers for the goods or services;
• the meth­ods used to dis­trib­ute the goods or sup­ply of ser­vices; and
• the nature of reg­u­la­to­ry envi­ron­ment (wher­ev­er applic­a­ble), includ­ing bank­ing, insur­ance, or pub­lic utilities;

• “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;
• “casu­al tax­able per­son” means a per­son who occa­sion­al­ly under­takes trans­ac­tions involv­ing sup­ply of goods or ser­vices or both in the course or fur­ther­ance of busi­ness, whether as prin­ci­pal, agent or in any oth­er capac­i­ty, in a State or a Union ter­ri­to­ry where he has no fixed place of business;
• “cen­tral tax” means the cen­tral goods and ser­vices tax levied under sec­tion 9;
• “cess” shall have the same mean­ing as assigned to it in the Goods and Ser­vices Tax (Com­pen­sa­tion to States) Act;
• “char­tered accoun­tant” means a char­tered accoun­tant as defined in clause (b) of sub-sec­tion (1) of sec­tion 2 of the Char­tered Accoun­tants Act, 1949;
• “Com­mis­sion­er” means the Com­mis­sion­er of cen­tral tax and includes the Prin­ci­pal Com­mis­sion­er of cen­tral tax appoint­ed under sec­tion 3 and the Com­mis­sion­er of inte­grat­ed tax appoint­ed under the Inte­grat­ed Goods and Ser­vices Tax Act;
• “Com­mis­sion­er in the Board” means the Com­mis­sion­er referred to in sec­tion 168;
• “com­mon por­tal” means the com­mon goods and ser­vices tax elec­tron­ic por­tal referred to in sec­tion 146;
• “com­mon work­ing days” in respect of a State or Union ter­ri­to­ry shall mean such days in suc­ces­sion which are not declared as gazetted hol­i­days by the Cen­tral Gov­ern­ment or the con­cerned State or Union ter­ri­to­ry Government;
• “com­pa­ny sec­re­tary” means a com­pa­ny sec­re­tary as defined in  clause

(c) of sub-sec­tion (1) of sec­tion 2 of the Com­pa­ny Sec­re­taries Act, 1980;

• “com­pe­tent author­i­ty” means such author­i­ty as may be noti­fied by the Government;
• “com­pos­ite sup­ply” means a sup­ply made by a tax­able per­son to a recip­i­ent con­sist­ing of two or more tax­able sup­plies of goods or ser­vices or both, or any com­bi­na­tion there­of, which are nat­u­ral­ly bun­dled and sup­plied in con­junc­tion with each oth­er in the ordi­nary course of busi­ness, one of which is a prin­ci­pal supply;

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;

• “con­sid­er­a­tion” in rela­tion to the sup­ply of goods or ser­vices or both includes––
• 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;
• 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;

• “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;
• con­tin­u­ous sup­ply of ser­vices” means a sup­ply of ser­vices which is pro­vid­ed, or agreed to be pro­vid­ed, con­tin­u­ous­ly or on recur­rent basis, under a con­tract, for a peri­od exceed­ing three months with peri­od­ic pay­ment oblig­a­tions and includes sup­ply of such ser­vices as the Gov­ern­ment may, sub­ject to such con­di­tions, as it may, by noti­fi­ca­tion, specify;
• “con­veyance” includes a ves­sel, an air­craft and a vehicle;
• “cost accoun­tant” means a cost accoun­tant as defined in clause (c) of sub-sec­tion (1) of sec­tion 2 of the Cost and Works Accoun­tants Act, 1959;
• “Coun­cil” means the Goods and Ser­vices Tax Coun­cil estab­lished under arti­cle 279A of the Constitution;
• “cred­it note” means a doc­u­ment issued by a reg­is­tered per­son under sub-sec­tion (1) of sec­tion 34;
• “deb­it note” means a doc­u­ment issued by a reg­is­tered per­son under sub-sec­tion (3) of sec­tion 34;
• “deemed exports” means such sup­plies of goods as may be noti­fied under sec­tion 147;
• “des­ig­nat­ed author­i­ty” means such author­i­ty as may be noti­fied by the Board;
• “doc­u­ment” includes writ­ten or print­ed record of any sort and elec­tron­ic record as defined in clause (t) of sec­tion 2 of the Infor­ma­tion Tech­nol­o­gy Act, 2000;
• “draw­back” in rela­tion to any goods man­u­fac­tured in India and export­ed, means the rebate of duty, tax or cess charge­able on any import­ed inputs or on any domes­tic inputs or input ser­vices used in the man­u­fac­ture of such goods;
• “elec­tron­ic cash ledger” means the elec­tron­ic cash ledger referred to in sub- sec­tion (1) of sec­tion 49;
• “elec­tron­ic com­merce” means the sup­ply of goods or ser­vices or both, includ­ing dig­i­tal prod­ucts over dig­i­tal or elec­tron­ic network;
• “elec­tron­ic com­merce oper­a­tor” means any per­son who owns, oper­ates or man­ages dig­i­tal or elec­tron­ic facil­i­ty or plat­form for elec­tron­ic commerce;
• “elec­tron­ic cred­it ledger” means the elec­tron­ic cred­it ledger referred to in sub-sec­tion (2) of sec­tion 49;
• “exempt sup­ply” means sup­ply of any goods or ser­vices or both which attracts nil rate of tax or which may be whol­ly exempt from tax under sec­tion 11, or under sec­tion 6 of the Inte­grat­ed Goods and Ser­vices Tax Act, and includes non-tax­able supply;
• “exist­ing law” means any law, noti­fi­ca­tion, order, rule or reg­u­la­tion relat­ing to levy and col­lec­tion of duty or tax on goods or ser­vices or both passed or made before the com­mence­ment of this Act by Par­lia­ment or any Author­i­ty or per­son hav­ing the pow­er to make such law, noti­fi­ca­tion, order, rule or regulation;
• “fam­i­ly” means,––
• the spouse and chil­dren of the per­son, and
• the par­ents, grand-par­ents, broth­ers and sis­ters of the per­son if they are whol­ly or main­ly depen­dent on the said person; 
  • “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;
• “Fund” means the Con­sumer Wel­fare Fund estab­lished under sec­tion 57;
• “goods” means every kind of mov­able prop­er­ty oth­er than mon­ey and secu­ri­ties but includes action­able claim, grow­ing crops, grass and things attached to or form­ing part of the land which are agreed to be sev­ered before sup­ply or under a con­tract of supply;
• “Gov­ern­ment” means the Cen­tral Government;
• “Goods and Ser­vices Tax (Com­pen­sa­tion to States) Act” means the Goods and Ser­vices Tax (Com­pen­sa­tion to States) Act, 2017;
• “goods and ser­vices tax prac­ti­tion­er” means any per­son who has been approved under sec­tion 48 to act as such practitioner;
• “India” means the ter­ri­to­ry of India as referred to in arti­cle 1 of the Con­sti­tu­tion, its ter­ri­to­r­i­al waters, seabed and sub-soil under­ly­ing such waters, con­ti­nen­tal shelf, exclu­sive eco­nom­ic zone or any oth­er mar­itime zone as referred to in the Ter­ri­to­r­i­al Waters, Con­ti­nen­tal Shelf, Exclu­sive Eco­nom­ic Zone and oth­er Mar­itime Zones Act, 1976, and the air space above its ter­ri­to­ry and ter­ri­to­r­i­al waters;
• “Inte­grat­ed Goods and Ser­vices Tax Act” means the Inte­grat­ed Goods and Ser­vices Tax Act, 2017;
• “inte­grat­ed tax” means the inte­grat­ed goods and ser­vices tax levied under the Inte­grat­ed Goods and Ser­vices Tax Act;
• “input” means any goods oth­er than cap­i­tal goods used or intend­ed to be used by a sup­pli­er in the course or fur­ther­ance of business;
• “input ser­vice” means any ser­vice used or intend­ed to be used by a sup­pli­er in the course or fur­ther­ance of business;
• “Input Ser­vice Dis­trib­u­tor” means an office of the sup­pli­er of goods or ser­vices or both which receives tax invoic­es issued under sec­tion 31 towards the receipt of input ser­vices and issues a pre­scribed doc­u­ment for the pur­pos­es of dis­trib­ut­ing the cred­it of cen­tral tax, State tax, inte­grat­ed tax or Union ter­ri­to­ry tax paid on the said ser­vices to a sup­pli­er of tax­able goods or ser­vices or both hav­ing the same Per­ma­nent Account Num­ber as that of the said office;
• “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— 
  • the inte­grat­ed goods and ser­vices tax charged on import of goods;
  • the tax payable under the pro­vi­sions of sub-sec­tions (3) and (4) of sec­tion 9;
  • the tax payable under the pro­vi­sions of sub-sec­tions (3) and (4) of sec­tion 5 of the Inte­grat­ed Goods and Ser­vices Tax Act;
  • 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
  • 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;

• “input tax cred­it” means the cred­it of input tax;
• “intra-State sup­ply of goods” shall have the same mean­ing as assigned to it in sec­tion 8 of the Inte­grat­ed Goods and Ser­vices Tax Act;
• “intra-State sup­ply of ser­vices” shall have the same mean­ing as assigned to it in sec­tion 8 of the Inte­grat­ed Goods and Ser­vices Tax Act;
• “invoice” or “tax invoice” means the tax invoice referred to in sec­tion 31;
• “inward sup­ply” in rela­tion to a per­son, shall mean receipt of goods or ser­vices or both whether by pur­chase, acqui­si­tion or any oth­er means with or with­out consideration;
• “job work” means any treat­ment or process under­tak­en by a per­son on goods belong­ing to anoth­er reg­is­tered per­son and the expres­sion “job work­er” shall be con­strued accordingly;
• “local author­i­ty” means–– 
  • a “Pan­chay­at” as defined in clause (d) of arti­cle 243 of the Constitution;
  • a “Munic­i­pal­i­ty” as defined in clause (e) of arti­cle 243P of the Constitution;
  • 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;
  • a Can­ton­ment Board as defined in sec­tion 3 of the Can­ton­ments Act, 2006;
  • a Region­al Coun­cil or a Dis­trict Coun­cil con­sti­tut­ed under the Sixth Sched­ule to the Constitution;
  • a Devel­op­ment Board con­sti­tut­ed under arti­cle 371 of the Constitution;

 

or

• a Region­al Coun­cil con­sti­tut­ed under arti­cle 371A of the Constitution;

• “loca­tion of the recip­i­ent of ser­vices” means,— 
  • where a sup­ply is received at a place of busi­ness for which the reg­is­tra­tion has been obtained, the loca­tion of such place of business;
  • 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;
  • 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
  • in absence of such places, the loca­tion of the usu­al place of res­i­dence of the recipient;
• “loca­tion of the sup­pli­er of ser­vices” means,— 
  • where a sup­ply is made from a place of busi­ness for which the reg­is­tra­tion has been obtained, the loca­tion of such place of business;
  • 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;
  • 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
  • in absence of such places, the loca­tion of the usu­al place of res­i­dence of the supplier;
• “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;
• “mar­ket val­ue” shall mean the full amount which a recip­i­ent of a sup­ply is required to pay in order to obtain the goods or ser­vices or both of like kind and qual­i­ty at or about the same time and at the same com­mer­cial lev­el where the recip­i­ent and the sup­pli­er are not related;
• “mixed sup­ply” means two or more indi­vid­ual sup­plies of goods or ser­vices, or any com­bi­na­tion there­of, made in con­junc­tion with each oth­er by a tax­able per­son for a sin­gle price where such sup­ply does not con­sti­tute a composite

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;

• “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;
• “motor vehi­cle” shall have the same mean­ing as assigned to it in clause (28) of sec­tion 2 of the Motor Vehi­cles Act, 1988;
• “non-res­i­dent tax­able per­son” means any per­son who occa­sion­al­ly under­takes trans­ac­tions involv­ing sup­ply of goods or ser­vices or both, whether as prin­ci­pal or agent or in any oth­er capac­i­ty, but who has no fixed place of busi­ness or res­i­dence in India;
• “non-tax­able sup­ply” means a sup­ply of goods or ser­vices or both which is not levi­able to tax under this Act or under the Inte­grat­ed Goods and Ser­vices Tax Act;
• “non-tax­able ter­ri­to­ry” means the ter­ri­to­ry which is out­side the tax­able territory;
• “noti­fi­ca­tion” means a noti­fi­ca­tion pub­lished in the Offi­cial Gazette and the expres­sions “noti­fy” and “noti­fied” shall be con­strued accordingly;
• “oth­er ter­ri­to­ry” includes ter­ri­to­ries oth­er than those com­pris­ing in a State and those referred to in sub-claus­es (a) to (e) of clause (114) ;
• “out­put tax” in rela­tion to a tax­able per­son, means the tax charge­able under this Act on tax­able sup­ply of goods or ser­vices or both made by him or by his agent but excludes tax payable by him on reverse charge basis;
• “out­ward sup­ply” in rela­tion to a tax­able per­son, means sup­ply of goods or ser­vices or both, whether by sale, trans­fer, barter, exchange, licence, rental, lease or dis­pos­al or any oth­er mode, made or agreed to be made by such per­son in the course or fur­ther­ance of business;
• “per­son” includes— 
  • an indi­vid­ual;
  • a Hin­du Undi­vid­ed Family;
  • a com­pa­ny;
  • a firm;
  • a Lim­it­ed Lia­bil­i­ty Partnership;
  • an asso­ci­a­tion of per­sons or a body of indi­vid­u­als, whether incor­po­rat­ed or not, in India or out­side India;
  • 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;
  • any body cor­po­rate incor­po­rat­ed by or under the laws of a coun­try out­side India;
  • a co-oper­a­tive soci­ety reg­is­tered under any law relat­ing to co-oper­a­tive societies;
• a local authority;
• Cen­tral Gov­ern­ment or a State Government;
• soci­ety as defined under the Soci­eties Reg­is­tra­tion Act, 1860;
• trust; and
• every arti­fi­cial juridi­cal per­son, not falling with­in any of the above;
• “place of busi­ness” includes–– 
  • 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
  • a place where a tax­able per­son main­tains his books of account; or
  • a place where a tax­able per­son is engaged in busi­ness through an agent, by what­ev­er name called;
• “place of sup­ply” means the place of sup­ply as referred to in Chap­ter V of the Inte­grat­ed Goods and Ser­vices Tax Act;
• “pre­scribed” means pre­scribed by rules made under this Act on the rec­om­men­da­tions of the Council;
• “prin­ci­pal” means a per­son on whose behalf an agent car­ries on the busi­ness of sup­ply or receipt of goods or ser­vices or both;
• “prin­ci­pal place of busi­ness” means the place of busi­ness spec­i­fied as the prin­ci­pal place of busi­ness in the cer­tifi­cate of registration;
• “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;
• “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;
• “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— 
  • where a con­sid­er­a­tion is payable for the sup­ply of goods or ser­vices or both, the per­son who is liable to pay that consideration;
  • 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
  • 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;

• “reg­is­tered per­son” means a per­son who is reg­is­tered under sec­tion 25 but does not include a per­son hav­ing a Unique Iden­ti­ty Number;
• “reg­u­la­tions” means the reg­u­la­tions made by the Board under this Act on the rec­om­men­da­tions of the Council;
• “removal’’ in rela­tion to goods, means—

 

• despatch of the goods for deliv­ery by the sup­pli­er there­of or by any oth­er per­son act­ing on behalf of such sup­pli­er; or
• col­lec­tion of the goods by the recip­i­ent there­of or by any oth­er per­son act­ing on behalf of such recipient;

• “return” means any return pre­scribed or oth­er­wise required to be fur­nished by or under this Act or the rules made thereunder;
• “reverse charge” means the lia­bil­i­ty to pay tax by the recip­i­ent of sup­ply of goods or ser­vices or both instead of the sup­pli­er of such goods or ser­vices or both under sub-sec­tion (3) or sub-sec­tion (4) of sec­tion 9, or under sub-sec­tion (3) or sub- sec­tion (4) of sec­tion 5 of the Inte­grat­ed Goods and Ser­vices Tax Act;
• “Revi­sion­al Author­i­ty” means an author­i­ty appoint­ed or autho­rised for revi­sion of deci­sion or orders as referred to in sec­tion 108;
• “Sched­ule” means a Sched­ule append­ed to this Act;
• “secu­ri­ties” shall have the same mean­ing as assigned to it in clause (h) of sec­tion 2 of the Secu­ri­ties Con­tracts (Reg­u­la­tion) Act, 1956;
• “ser­vices” means any­thing oth­er than goods, mon­ey and secu­ri­ties but includes activ­i­ties relat­ing to the use of mon­ey or its con­ver­sion by cash or by any oth­er mode, from one form, cur­ren­cy or denom­i­na­tion, to anoth­er form, cur­ren­cy or denom­i­na­tion for which a sep­a­rate con­sid­er­a­tion is charged;
• “State” includes a Union ter­ri­to­ry with Legislature;
• “State tax” means the tax levied under any State Goods and Ser­vices Tax
• “sup­pli­er” in rela­tion to any goods or ser­vices or both, shall mean the

per­son sup­ply­ing the said goods or ser­vices or both and shall include an agent act­ing as such on behalf of such sup­pli­er in rela­tion to the goods or ser­vices or both supplied;

• “tax peri­od” means the peri­od for which the return is required to be furnished;
• “tax­able per­son” means a per­son who is reg­is­tered or liable to be reg­is­tered under sec­tion 22 or sec­tion 24;
• “tax­able sup­ply” means a sup­ply of goods or ser­vices or both which is levi­able to tax under this Act;
• “tax­able ter­ri­to­ry” means the ter­ri­to­ry to which the pro­vi­sions of this Act apply;
• “telecom­mu­ni­ca­tion ser­vice” means ser­vice of any descrip­tion (includ­ing elec­tron­ic mail, voice mail, data ser­vices, audio text ser­vices, video text ser­vices, radio pag­ing and cel­lu­lar mobile tele­phone ser­vices) which is made avail­able to users by means of any trans­mis­sion or recep­tion of signs, sig­nals, writ­ing, images and sounds or intel­li­gence of any nature, by wire, radio, visu­al or oth­er elec­tro­mag­net­ic means;
• “the State Goods and Ser­vices Tax Act” means the respec­tive State Goods and Ser­vices Tax Act, 2017;
• “turnover in State” or “turnover in Union ter­ri­to­ry” means the aggre­gate val­ue of all tax­able sup­plies (exclud­ing the val­ue of inward sup­plies on which tax is payable by a per­son on reverse charge basis) and exempt sup­plies made with­in a State or Union ter­ri­to­ry by a tax­able per­son, exports of goods or ser­vices  or  both and inter-State sup­plies of goods or ser­vices or both made from the State or Union ter­ri­to­ry by the said tax­able per­son but excludes cen­tral tax, State tax, Union territory

x, inte­grat­ed tax and cess;

• “usu­al place of res­i­dence” means–– 
  • in case of an indi­vid­ual, the place where he ordi­nar­i­ly resides;
  • in oth­er cas­es, the place where the per­son is incor­po­rat­ed or oth­er­wise legal­ly constituted;
• “Union ter­ri­to­ry” means the ter­ri­to­ry of— 
  • the Andaman and Nico­bar Islands;
  • Lak­shad­weep;
  • Dadra and Nagar Haveli;
  • Daman and Diu;
  • Chandi­garh; and
  • oth­er

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;

• “Union ter­ri­to­ry tax” means the Union ter­ri­to­ry goods and ser­vices tax levied under the Union Ter­ri­to­ry Goods and Ser­vices Tax Act;
• “Union Ter­ri­to­ry Goods and Ser­vices Tax Act” means the Union Ter­ri­to­ry Goods and Ser­vices Tax Act, 2017;
• “valid return” means a return fur­nished under sub-sec­tion (1) of sec­tion 39 on which self-assessed tax has been paid in full;
• “vouch­er” means an instru­ment where there is an oblig­a­tion to accept it as con­sid­er­a­tion or part con­sid­er­a­tion for a sup­ply of goods or ser­vices or both and where the goods or ser­vices or both to be sup­plied or the iden­ti­ties of their poten­tial sup­pli­ers are either indi­cat­ed on the instru­ment itself or in relat­ed doc­u­men­ta­tion, includ­ing the terms and con­di­tions of use of such instrument;
• “works con­tract” means a con­tract for build­ing, con­struc­tion, fab­ri­ca­tion, com­ple­tion, erec­tion, instal­la­tion, fit­ting out, improve­ment, mod­i­fi­ca­tion, repair, main­te­nance, ren­o­va­tion, alter­ation or com­mis­sion­ing of any immov­able prop­er­ty where­in trans­fer of prop­er­ty in goods (whether as goods or in some oth­er form) is involved in the exe­cu­tion of such contract;
• words and expres­sions used and not defined in this Act but defined in the Inte­grat­ed Goods and Ser­vices Tax Act, the Union Ter­ri­to­ry Goods and Ser­vices Tax Act and the Goods and Ser­vices Tax (Com­pen­sa­tion to States) Act shall have the same mean­ing as assigned to them in those Acts;
• any ref­er­ence in this Act to a law which is not in force in the State of Jam­mu and Kash­mir, shall, in rela­tion to that State be con­strued as a ref­er­ence to the cor­re­spond­ing law, if any, in force in that

CHAPTER II ADMINISTRATION

3. The Gov­ern­ment shall, by noti­fi­ca­tion, appoint the fol­low­ing class­es of offi­cers for the pur­pos­es of this Act, namely:––

• Prin­ci­pal Chief Com­mis­sion­ers of Cen­tral Tax or Prin­ci­pal Direc­tors Gen­er­al of Cen­tral Tax,
• Chief Com­mis­sion­ers of Cen­tral Tax or Direc­tors Gen­er­al of Cen­tral Tax,
• Prin­ci­pal Com­mis­sion­ers of Cen­tral Tax or Prin­ci­pal Addi­tion­al Direc­tors Gen­er­al of Cen­tral Tax,
• Com­mis­sion­ers of Cen­tral Tax or Addi­tion­al Direc­tors Gen­er­al of Cen­tral Tax,

 

• Addi­tion­al Com­mis­sion­ers of Cen­tral Tax or Addi­tion­al Direc­tors of Cen­tral Tax,
• Joint Com­mis­sion­ers of Cen­tral Tax or Joint Direc­tors of Cen­tral Tax,
• Deputy Com­mis­sion­ers of Cen­tral Tax or Deputy Direc­tors of Cen­tral Tax,
• Assis­tant Com­mis­sion­ers of Cen­tral Tax or Assis­tant Direc­tors of Cen­tral Tax, and

(i) 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. (1) The Board may, in addi­tion to the offi­cers as may be noti­fied by the Gov­ern­ment under sec­tion 3, appoint such per­sons as it may think fit to be the offi­cers under this

(2) With­out prej­u­dice to the pro­vi­sions of sub-sec­tion (1), the Board may, by  order, autho­rise any offi­cer referred to in claus­es (a) to (h) of sec­tion 3 to appoint offi­cers of cen­tral tax below the rank of Assis­tant Com­mis­sion­er of cen­tral tax for the admin­is­tra­tion of this Act.

5. (1) Sub­ject to such con­di­tions and lim­i­ta­tions as the Board may impose, an offi­cer of cen­tral tax may exer­cise the pow­ers and dis­charge the duties con­ferred or imposed on him under this

• An offi­cer of cen­tral tax may exer­cise the pow­ers and dis­charge the duties con­ferred or imposed under this Act on any oth­er offi­cer of cen­tral tax who is sub­or­di­nate to
• The Com­mis­sion­er may, sub­ject to such con­di­tions and lim­i­ta­tions as may be spec­i­fied in this behalf by him, del­e­gate his pow­ers to any oth­er offi­cer who is sub­or­di­nate to
• Notwith­stand­ing any­thing con­tained in this sec­tion, an Appel­late Author­i­ty shall not exer­cise the pow­ers and dis­charge the duties con­ferred or imposed on any oth­er offi­cer of central

6. (1) With­out prej­u­dice to the pro­vi­sions of this Act, the offi­cers appoint­ed under the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act are autho­rised to be the prop­er offi­cers for the pur­pos­es of this Act, sub­ject to such con­di­tions as the Gov­ern­ment shall, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, specify.

• Sub­ject to the con­di­tions spec­i­fied in the noti­fi­ca­tion issued under sub-sec­tion (1),––
  • 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;
  • 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
• 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 T

 

CHAPTER III

LEVY AND COLLECTION OF TAX

7. (1) For the pur­pos­es of this Act, the expres­sion “sup­ply” includes––

• 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;
• import of ser­vices for a con­sid­er­a­tion whether or not in the course or fur­ther­ance of business;
• the activ­i­ties spec­i­fied in Sched­ule I, made or agreed to be made with­out a con­sid­er­a­tion; and
• the activ­i­ties to be treat­ed as sup­ply of goods or sup­ply of ser­vices as referred to in Schedule
• Notwith­stand­ing any­thing con­tained in sub-sec­tion (1),––
  • activ­i­ties or trans­ac­tions spec­i­fied in Sched­ule III; or
  • 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.

• 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— 
  • a sup­ply of goods and not as a sup­ply of ser­vices; or
  • a sup­ply of ser­vices and not as a sup­ply of

8. The tax lia­bil­i­ty on a com­pos­ite or a mixed sup­ply shall be deter­mined in the fol­low­ing man­ner, namely:—

• 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
• a mixed sup­ply com­pris­ing two or more sup­plies shall be treat­ed as a sup­ply of that par­tic­u­lar sup­ply which attracts the high­est rate of

9. (1) Sub­ject to the pro­vi­sions of sub-sec­tion (2), there shall be levied a tax called the cen­tral goods and ser­vices tax on all intra-State sup­plies of goods or ser­vices or both, except on the sup­ply of alco­holic liquor for human con­sump­tion, on the val­ue deter­mined under sec­tion 15 and at such rates, not exceed­ing twen­ty per cent., as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the Coun­cil and col­lect­ed in such man­ner as may be pre­scribed and shall be paid by the taxable

• The cen­tral tax on the sup­ply of petro­le­um crude, high speed diesel, motor spir­it (com­mon­ly known as petrol), nat­ur­al gas and avi­a­tion tur­bine fuel shall be levied with effect from such date as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the
• The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, spec­i­fy cat­e­gories of sup­ply of goods or ser­vices or both, the tax on which shall be paid on reverse charge basis by the recip­i­ent of such goods or ser­vices or both and all the pro­vi­sions of this Act shall apply to such recip­i­ent as if he is the per­son liable for pay­ing the tax in rela­tion to the sup­ply of such goods or ser­vices or

com­po­si­tion levy.

• The cen­tral tax in respect of the sup­ply of tax­able goods or ser­vices or both by a sup­pli­er, who is not reg­is­tered, to a reg­is­tered per­son shall be paid by such per­son on reverse charge basis as the recip­i­ent and all the pro­vi­sions of this Act shall apply to such recip­i­ent as if he is the per­son liable for pay­ing the tax in rela­tion to the sup­ply of such goods or ser­vices or
• The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, spec­i­fy cat­e­gories of ser­vices the tax on intra-State sup­plies of which shall be paid by the elec­tron­ic com­merce oper­a­tor if such ser­vices are sup­plied through it, and all the pro­vi­sions of this Act shall apply to such elec­tron­ic com­merce oper­a­tor as if he is the sup­pli­er liable for pay­ing the tax in rela­tion to the sup­ply of such services:

Pro­vid­ed that where an elec­tron­ic com­merce oper­a­tor does not have a phys­i­cal pres­ence in the tax­able ter­ri­to­ry, any per­son rep­re­sent­ing such elec­tron­ic com­merce oper­a­tor for any pur­pose in the tax­able ter­ri­to­ry shall be liable to pay tax:

Pro­vid­ed fur­ther that where an elec­tron­ic com­merce oper­a­tor does not have a phys­i­cal pres­ence in the tax­able ter­ri­to­ry and also he does not have a rep­re­sen­ta­tive in the said ter­ri­to­ry, such elec­tron­ic com­merce oper­a­tor shall appoint a per­son in the tax­able ter­ri­to­ry for the pur­pose of pay­ing tax and such per­son shall be liable to pay tax.

10. (1) Notwith­stand­ing any­thing to the con­trary con­tained in this Act but sub­ject to the pro­vi­sions of sub-sec­tions (3) and (4) of sec­tion 9, a reg­is­tered per­son, whose aggre­gate turnover in the pre­ced­ing finan­cial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him, an amount cal­cu­lat­ed at such rate as may be pre­scribed, but not exceeding,––

• one per of the turnover in State or turnover in Union ter­ri­to­ry in case of a manufacturer,
• two and a half per 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
• half per 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.

• The reg­is­tered per­son shall be eli­gi­ble to opt under sub-sec­tion (1), if:—
  • he is not engaged in the sup­ply of ser­vices oth­er than sup­plies referred to in clause (b) of para­graph 6 of Sched­ule II;
  • he is not engaged in mak­ing any sup­ply of goods which are not levi­able to tax under this Act;
  • he is not engaged in mak­ing any inter-State out­ward sup­plies of goods;
  • 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
  • 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.

 

• 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).
• A tax­able per­son to whom the pro­vi­sions of sub-sec­tion (1) apply shall not col­lect any tax from the recip­i­ent on sup­plies made by him nor shall he be enti­tled to any cred­it of input
• If the prop­er offi­cer has rea­sons to believe that a tax­able per­son has paid tax under sub-sec­tion (1) despite not being eli­gi­ble, such per­son shall, in addi­tion to any tax that may be payable by him under any oth­er pro­vi­sions of this Act, be liable to a penal­ty and the pro­vi­sions of sec­tion 73 or sec­tion 74 shall, mutatis mutan­dis, apply for deter­mi­na­tion of tax and

11. (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

• 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 spe­cial order in each case, under cir­cum­stances of an excep­tion­al nature to be stat­ed in such order, exempt from pay­ment of tax any goods or ser­vices or both on which tax is
• The Gov­ern­ment may, if it con­sid­ers nec­es­sary or expe­di­ent so to do for the pur­pose of clar­i­fy­ing the scope or applic­a­bil­i­ty of any noti­fi­ca­tion issued under sub-sec­tion (1) or order issued under sub-sec­tion (2), insert an expla­na­tion in such noti­fi­ca­tion or order, as the case may be, by noti­fi­ca­tion at any time with­in one year of issue of the noti­fi­ca­tion under sub-sec­tion (1) or order under sub-sec­tion (2), and every such expla­na­tion shall have effect as if it had always been the part of the first such noti­fi­ca­tion or order, as the case may

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. (1) The lia­bil­i­ty to pay tax on goods shall arise at the time of sup­ply, as deter­mined in accor­dance with the pro­vi­sions of this

• The time of sup­ply of goods shall be the ear­li­er of the fol­low­ing dates, namely:— 
  • 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
  • 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.

 

Time of sup­ply of goods.

Time of sup­ply of  services.

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.

• 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:— 
  • the date of the receipt of goods; or
  • 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
  • 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.

• In case of sup­ply of vouch­ers by a sup­pli­er, the time of sup­ply shall be— 
  • the date of issue of vouch­er, if the sup­ply is iden­ti­fi­able at that point; or
  • the date of redemp­tion of vouch­er, in all other
• 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–– 
  • in a case where a peri­od­i­cal return has to be filed, be the date on which such return is to be filed; or
  • in any oth­er case, be the date on which the tax is
• 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

13. (1) The lia­bil­i­ty to pay tax on ser­vices shall arise at the time of sup­ply, as deter­mined in accor­dance with the pro­vi­sions of this

• The time of sup­ply of ser­vices shall be the ear­li­est of the fol­low­ing dates, namely:— 
  • 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
  • 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
  • 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)––

 

• the 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;
• “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

• 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:–– 
  • 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
  • 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.

• In case of sup­ply of vouch­ers by a sup­pli­er, the time of sup­ply shall be–– 
  • the date of issue of vouch­er, if the sup­ply is iden­ti­fi­able at that point; or
  • the date of redemp­tion of vouch­er, in all other
• 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–– 
  • in a case where a peri­od­i­cal return has to be filed, be the date on which such return is to be filed; or
  • in any oth­er case, be the date on which the tax is
• 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

14. Notwith­stand­ing any­thing con­tained in sec­tion 12 or sec­tion 13, the time of sup­ply, where there is a change in the rate of tax in respect of goods or ser­vices or both, shall be deter­mined in the fol­low­ing man­ner, namely:––

• in case the goods or ser­vices or both have been sup­plied before the change in rate of tax,–– 
  • where the invoice for the same has been issued and the pay­ment is also received after the change in rate of tax, the time of sup­ply shall be the date of receipt of pay­ment or the date of issue of invoice, whichev­er is ear­li­er; or
  • where the invoice has been issued pri­or to the change in rate of tax but pay­ment is received after the change in rate of tax, the time of sup­ply shall be the date of issue of invoice; or
  • where the pay­ment has been received before the change in rate of tax, but the invoice for the same is issued after the change in rate of tax, the time of sup­ply shall be the date of receipt of payment;
• in case the goods or ser­vices or both have been sup­plied after the change in rate of tax,––

rate of tax in respect of sup­ply of goods or services.

 

val­ue of tax­able supply.

• where the pay­ment is received after the change in rate of tax but the invoice has been issued pri­or to the change in rate of tax, the time of sup­ply shall be the date of receipt of pay­ment; or
• where the invoice has been issued and pay­ment is received before the change in rate of tax, the time of sup­ply shall be the date of receipt of pay­ment or date of issue of invoice, whichev­er is ear­li­er; or
• where the invoice has been issued after the change in rate of tax but the pay­ment is received before the change in rate of tax, the time of sup­ply shall be the date of issue of invoice:

Pro­vid­ed that the date of receipt of pay­ment shall be the date of cred­it in the bank account if such 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. (1) The val­ue of a sup­ply of goods or ser­vices or both shall be the trans­ac­tion val­ue, which is the price actu­al­ly paid or payable for the said sup­ply of goods or ser­vices or both where the sup­pli­er and the recip­i­ent of the sup­ply are not relat­ed and the price is the sole con­sid­er­a­tion for the

• The val­ue of sup­ply shall include––– 
  • 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;
  • 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;
  • 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;
  • inter­est or late fee or penal­ty for delayed pay­ment of any con­sid­er­a­tion for any sup­ply; and
  • sub­si­dies direct­ly linked to the price exclud­ing sub­si­dies pro­vid­ed by the Cen­tral Gov­ern­ment and State

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.

• The val­ue of the sup­ply shall not include any dis­count which is given–– 
  • 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
  • after the sup­ply has been effect­ed, if— 
    • such dis­count is estab­lished in terms of an agree­ment entered into at or before the time of such sup­ply and specif­i­cal­ly linked to rel­e­vant invoic­es; and
    • input tax cred­it as is attrib­ut­able to the dis­count on the basis of doc­u­ment issued by the sup­pli­er has been reversed by the recip­i­ent of the supply.

 

 

 

• 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
• Notwith­stand­ing any­thing con­tained in sub-sec­tion (1) or sub-sec­tion (4), the val­ue of such sup­plies as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the Coun­cil shall be deter­mined in such man­ner as may be

Expla­na­tion.—For the pur­pos­es of this Act,––

• per­sons shall be deemed to be “relat­ed per­sons” if–– 
  • such per­sons are offi­cers or direc­tors of one another’s businesses;
  • such per­sons are legal­ly recog­nised part­ners in business;
  • such per­sons are employ­er and employee;
  • any per­son direct­ly or indi­rect­ly owns, con­trols or holds twen­ty-five per cent. or more of the out­stand­ing vot­ing stock or shares of both of them;
  • one of them direct­ly or indi­rect­ly con­trols the other;
  • both of them are direct­ly or indi­rect­ly con­trolled by a third person;
  • togeth­er they direct­ly or indi­rect­ly con­trol a third per­son; or
  • they are mem­bers of the same family;
• the term “per­son” also includes legal persons;
• 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

CHAPTER V INPUT TAX CREDIT

16. (1) Every reg­is­tered per­son shall, sub­ject to such con­di­tions and restric­tions as may be pre­scribed and in the man­ner spec­i­fied in sec­tion 49, be enti­tled to take cred­it of input tax charged on any sup­ply of goods or ser­vices or both to him which are used or intend­ed to be used in the course or fur­ther­ance of his busi­ness and the said amount shall be cred­it­ed to the elec­tron­ic cred­it ledger of such

• 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,–– 
  • 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;
  • he has received the goods or ser­vices or

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;

• 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
• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eli­gi­bil­i­ty and con­di­tions for tak­ing input tax credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appor­tion­ment of cred­it and blocked credits.

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.

• 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
• A reg­is­tered per­son shall not be enti­tled to take input tax cred­it in respect of any invoice or deb­it note for sup­ply of goods or ser­vices or both after the due date of fur­nish­ing of the return under sec­tion 39 for the month of Sep­tem­ber fol­low­ing the end of finan­cial year to which such invoice or invoice relat­ing to such deb­it note per­tains or fur­nish­ing of the rel­e­vant annu­al return, whichev­er is

17. (1) Where the goods or ser­vices or both are used by the reg­is­tered per­son part­ly for the pur­pose of any busi­ness and part­ly for oth­er pur­pos­es, the amount of cred­it shall be restrict­ed to so much of the input tax as is attrib­ut­able to the pur­pos­es of his

• Where the goods or ser­vices or both are used by the reg­is­tered per­son part­ly for effect­ing tax­able sup­plies includ­ing zero-rat­ed sup­plies under this Act or under the Inte­grat­ed Goods and Ser­vices Tax Act and part­ly for effect­ing exempt sup­plies under the said Acts, the amount of cred­it shall be restrict­ed to so much of the input tax as is attrib­ut­able to the said tax­able sup­plies includ­ing zero-rated
• The val­ue of exempt sup­ply under sub-sec­tion (2) shall be such as may be pre­scribed, and shall include sup­plies on which the recip­i­ent is liable to pay tax on reverse charge basis, trans­ac­tions in secu­ri­ties, sale of land and, sub­ject to clause (b) of para­graph 5 of Sched­ule II, sale of
• A bank­ing com­pa­ny or a finan­cial insti­tu­tion includ­ing a non-bank­ing finan­cial com­pa­ny, engaged in sup­ply­ing ser­vices by way of accept­ing deposits, extend­ing loans or advances shall have the option to either com­ply with the pro­vi­sions of sub-sec­tion (2), or avail of, every month, an amount equal to fifty per cent. of the eli­gi­ble input tax cred­it on inputs, cap­i­tal goods and input ser­vices in that month and the rest shall lapse:

Pro­vid­ed that the option once exer­cised shall not be with­drawn dur­ing the remain­ing part of the finan­cial year:

Pro­vid­ed fur­ther that the restric­tion of fifty per cent. shall not apply to the tax paid on sup­plies made by one reg­is­tered per­son to anoth­er reg­is­tered per­son hav­ing the same Per­ma­nent Account Number.

• Notwith­stand­ing any­thing con­tained in sub-sec­tion (1) of sec­tion 16 and sub- sec­tion (1) of sec­tion 18, input tax cred­it shall not be avail­able in respect of the fol­low­ing, namely:—

 

 

 

 

 

 

 

 

 

 

 

 

43  of 1961.

 

• motor vehi­cles and oth­er con­veyances except when they are used–– 
  • for mak­ing the fol­low­ing tax­able sup­plies, namely:— 
    • fur­ther sup­ply of such vehi­cles or con­veyances ; or
    • trans­porta­tion of pas­sen­gers; or
    • impart­ing train­ing on dri­ving, fly­ing, nav­i­gat­ing such vehi­cles or conveyances;
  • for trans­porta­tion of goods;

 

 

 

• the fol­low­ing sup­ply of goods or ser­vices or both— 
  • food and bev­er­ages, out­door cater­ing, beau­ty treat­ment, health ser­vices, cos­met­ic and plas­tic surgery except where an inward sup­ply of goods or ser­vices or both of a par­tic­u­lar cat­e­go­ry is used by a reg­is­tered per­son for mak­ing an out­ward tax­able sup­ply of the same cat­e­go­ry of goods or ser­vices or both or as an ele­ment of a tax­able com­pos­ite or mixed supply;
  • mem­ber­ship of a club, health and fit­ness centre;
  • rent-a-cab, life insur­ance and health insur­ance except where–– 
    • the Gov­ern­ment noti­fies the ser­vices which are oblig­a­tory for an employ­er to pro­vide to its employ­ees under any law for the time being in force; or
    • such inward sup­ply of goods or ser­vices or both of a par­tic­u­lar cat­e­go­ry is used by a reg­is­tered per­son for mak­ing an out­ward tax­able sup­ply of the same cat­e­go­ry of goods or ser­vices or both or as part of a tax­able com­pos­ite or mixed sup­ply; and
  • trav­el ben­e­fits extend­ed to employ­ees on vaca­tion such as leave or home trav­el concession;
• 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;
• 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

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;

• goods or ser­vices or both on which tax has been paid under sec­tion 10;
• goods or ser­vices or both received by a non-res­i­dent tax­able per­son except on goods import­ed by him;
• goods or ser­vices or both used for per­son­al consumption;
• goods lost, stolen, destroyed, writ­ten off or dis­posed of by way of gift or free sam­ples; and
• any tax paid in accor­dance with the pro­vi­sions of sec­tions 74, 129 and

• The Gov­ern­ment may pre­scribe the man­ner in which the cred­it referred to in sub-sec­tions (1) and (2) may be

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—

• land, build­ing or any oth­er civ­il structures;
• telecom­mu­ni­ca­tion tow­ers; and
• pipelines laid out­side the factory

18. (1) Sub­ject to such con­di­tions and restric­tions as may be prescribed—

• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avail­abil­i­ty of cred­it  in spe­cial circumstances.

 

 

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;

• 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;
• where any reg­is­tered per­son ceas­es to pay tax under sec­tion 10, he shall be enti­tled to take cred­it of input tax in respect of inputs held in stock, inputs con­tained in semi-fin­ished or fin­ished goods held in stock and on cap­i­tal goods on the day imme­di­ate­ly pre­ced­ing the date from which he becomes liable to pay tax under sec­tion 9:

Pro­vid­ed that the cred­it on cap­i­tal goods shall be reduced by such per­cent­age points as may be prescribed;

• 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.

• 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
• Where there is a change in the con­sti­tu­tion of a reg­is­tered per­son on account of sale, merg­er, demerg­er, amal­ga­ma­tion, lease or trans­fer of the busi­ness with the spe­cif­ic pro­vi­sions for trans­fer of lia­bil­i­ties, the said reg­is­tered per­son shall be allowed to trans­fer the input tax cred­it which remains unutilised in his elec­tron­ic cred­it ledger to such sold, merged, demerged, amal­ga­mat­ed, leased or trans­ferred busi­ness in such man­ner as may be
• Where any reg­is­tered per­son who has availed of input tax cred­it opts to pay tax under sec­tion 10 or, where the goods or ser­vices or both sup­plied by him become whol­ly exempt, he shall pay an amount, by way of deb­it in the elec­tron­ic cred­it ledger or elec­tron­ic cash ledger, equiv­a­lent to the cred­it of input tax in respect of inputs held in stock and inputs con­tained in semi-fin­ished or fin­ished goods held in stock and on cap­i­tal goods, reduced by such per­cent­age points as may be pre­scribed, on the day imme­di­ate­ly pre­ced­ing the date of exer­cis­ing of such option or, as the case may be, the date of such exemption:

Pro­vid­ed that after pay­ment of such amount, the bal­ance of input tax cred­it, if any, lying in his elec­tron­ic cred­it ledger shall lapse.

• 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
• In case of sup­ply of cap­i­tal goods or plant and machin­ery, on which input tax cred­it has been tak­en, the reg­is­tered per­son shall pay an amount equal to the input tax cred­it tak­en on the said cap­i­tal goods or plant and machin­ery reduced by such per­cent­age points as may be pre­scribed or the tax on the trans­ac­tion val­ue of such cap­i­tal goods or plant and machin­ery deter­mined under sec­tion 15, whichev­er is higher:

Pro­vid­ed that where refrac­to­ry bricks, moulds and dies, jigs and fix­tures are sup­plied as scrap, the tax­able per­son may pay tax on the trans­ac­tion val­ue of such goods deter­mined under sec­tion 15.

 

 

 

19. (1) The prin­ci­pal shall, sub­ject to such con­di­tions and restric­tions as may be pre­scribed, be allowed input tax cred­it on inputs sent to a job work­er for job

• Notwith­stand­ing any­thing con­tained in clause (b) of sub-sec­tion (2) of sec­tion 16, the prin­ci­pal shall be enti­tled to take cred­it of input tax on inputs even if the inputs are direct­ly sent to a job work­er for job work with­out being first brought to his place of
• Where the inputs sent for job work are not received back by the prin­ci­pal after com­ple­tion of job work or oth­er­wise or are not sup­plied from the place of busi­ness of the job work­er in accor­dance with clause (a) or clause (b) of sub-sec­tion (1) of sec­tion 143 with­in one year of being sent out, it shall be deemed that such inputs had been sup­plied by the prin­ci­pal to the job work­er on the day when the said inputs were sent out:

Pro­vid­ed that where the inputs are sent direct­ly to a job work­er, the peri­od of one year shall be count­ed from the date of receipt of inputs by the job worker.

• The prin­ci­pal shall, sub­ject to such con­di­tions and restric­tions as may be pre­scribed, be allowed input tax cred­it on cap­i­tal goods sent to a job work­er for job
• Notwith­stand­ing any­thing con­tained in clause (b) of sub-sec­tion (2) of sec­tion 16, the prin­ci­pal shall be enti­tled to take cred­it of input tax on cap­i­tal goods even if the cap­i­tal goods are direct­ly sent to a job work­er for job work with­out being first brought to his place of
• Where the cap­i­tal goods sent for job work are not received back by the prin­ci­pal with­in a peri­od of three years of being sent out, it shall be deemed that such cap­i­tal goods had been sup­plied by the prin­ci­pal to the job work­er on the day when the said cap­i­tal goods were sent out:

Pro­vid­ed that where the cap­i­tal goods are sent direct­ly to a job work­er, the peri­od of three years shall be count­ed from the date of receipt of cap­i­tal goods by the job worker.

• 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

Expla­na­tion.––For the pur­pose of this sec­tion, “prin­ci­pal” means the per­son referred to in sec­tion 143.

20. (1) The Input Ser­vice Dis­trib­u­tor shall dis­trib­ute the cred­it of cen­tral tax as cen­tral tax or inte­grat­ed tax and inte­grat­ed tax as inte­grat­ed tax or cen­tral tax, by way of issue of a doc­u­ment con­tain­ing the amount of input tax cred­it being dis­trib­uted in such man­ner as may be

• The Input Ser­vice Dis­trib­u­tor may dis­trib­ute the cred­it sub­ject to the fol­low­ing con­di­tions, namely:–– 
  • the cred­it can be dis­trib­uted to the recip­i­ents of cred­it against a doc­u­ment con­tain­ing such details as may be prescribed;
  • the amount of the cred­it dis­trib­uted shall not exceed the amount of cred­it avail­able for distribution;
  • the cred­it of tax paid on input ser­vices attrib­ut­able to a recip­i­ent of cred­it shall be dis­trib­uted only to that recipient;
  • 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;

Tak­ing input tax cred­it in respect of inputs and cap­i­tal goods sent for job work.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Man­ner of dis­tri­b­u­tion of cred­it   by Input Ser­vice Distributor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Man­ner of recov­ery of credit

dis­trib­uted in excess.

• 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

Expla­na­tion.––For the pur­pos­es of this  section,––

• the “rel­e­vant peri­od” shall be–– 
  • if the recip­i­ents of cred­it have turnover in their States or Union ter­ri­to­ries in the finan­cial year pre­ced­ing the year dur­ing which cred­it is to be dis­trib­uted, the said finan­cial year; or
  • if some or all recip­i­ents of the cred­it do not have any turnover in their States or Union ter­ri­to­ries in the finan­cial year pre­ced­ing the year dur­ing which the cred­it is to be dis­trib­uted, the last quar­ter for which details of such turnover of all the recip­i­ents are avail­able, pre­vi­ous to the month dur­ing which cred­it is to be distributed;
• the expres­sion “recip­i­ent of cred­it” means the sup­pli­er of goods or ser­vices or both hav­ing the same Per­ma­nent Account Num­ber as that of the Input Ser­vice Distributor;
• the term ‘‘turnover’’, in rela­tion to any reg­is­tered per­son engaged in the sup­ply of tax­able goods as well as goods not tax­able under this Act, means the val­ue of turnover, reduced by the amount of any duty or tax levied under entry 84 of List I of the Sev­enth Sched­ule to the Con­sti­tu­tion and entries 51 and 54 of List II of the said

21. Where the Input Ser­vice Dis­trib­u­tor dis­trib­utes the cred­it in con­tra­ven­tion of the pro­vi­sions con­tained in sec­tion 20 result­ing in excess dis­tri­b­u­tion of cred­it to one or more recip­i­ents of cred­it, the excess cred­it so dis­trib­uted shall be recov­ered from such recip­i­ents along with inter­est, and the pro­vi­sions of sec­tion 73 or sec­tion 74, as the case may be, shall, mutatis mutan­dis, apply for deter­mi­na­tion of amount to be

 

 

 

 

 

Per­sons liable for

reg­is­tra­tion.

CHAPTER VI REGISTRATION

22. (1) Every sup­pli­er shall be liable to be reg­is­tered under this Act in the State or Union ter­ri­to­ry, oth­er than spe­cial cat­e­go­ry States, from where he makes a tax­able sup­ply of goods or ser­vices or both, if his aggre­gate turnover in a finan­cial year exceeds twen­ty lakh rupees:

Pro­vid­ed that where such per­son makes tax­able sup­plies of goods or ser­vices or both from any of the spe­cial cat­e­go­ry States, he shall be liable to be reg­is­tered if his aggre­gate turnover in a finan­cial year exceeds ten lakh rupees.

• 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
• Where a busi­ness car­ried on by a tax­able per­son reg­is­tered under this Act is trans­ferred, whether on account of suc­ces­sion or oth­er­wise, to anoth­er per­son as a going con­cern, the trans­fer­ee or the suc­ces­sor, as the case may be, shall be liable to be reg­is­tered with effect from the date of such trans­fer or
• Notwith­stand­ing any­thing con­tained in sub-sec­tions (1) and (3), in a case of trans­fer pur­suant to sanc­tion of a scheme or an arrange­ment for amal­ga­ma­tion or, as the case may be, demerg­er of two or more com­pa­nies pur­suant to an order of a High Court, Tribunal

 

 

 

or oth­er­wise, the trans­fer­ee shall be liable to be reg­is­tered, with effect from the date on which the Reg­is­trar of Com­pa­nies issues a cer­tifi­cate of incor­po­ra­tion giv­ing effect to such order of the High Court or Tribunal.

Expla­na­tion.––For the pur­pos­es of this  section,––

• the expres­sion “aggre­gate turnover” shall include all sup­plies made by the tax­able per­son, whether on his own account or made on behalf of all his principals;
• the sup­ply of goods, after com­ple­tion of job work, by a reg­is­tered job work­er shall be treat­ed as the sup­ply of goods by the prin­ci­pal referred to in sec­tion 143, and the val­ue of such goods shall not be includ­ed in the aggre­gate turnover of the reg­is­tered job worker;
• the expres­sion “spe­cial cat­e­go­ry States” shall mean the States as spec­i­fied in sub-clause (g) of clause (4) of arti­cle 279A of the

23. (1) The fol­low­ing per­sons shall not be liable to reg­is­tra­tion, namely:––

• 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;
• an agri­cul­tur­ist, to the extent of sup­ply of pro­duce out of cul­ti­va­tion of

(2) The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, spec­i­fy the cat­e­go­ry of per­sons who may be exempt­ed from obtain­ing reg­is­tra­tion under this Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per­sons not liable for

reg­is­tra­tion.

 

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

• per­sons mak­ing any inter-State tax­able supply;
• casu­al tax­able per­sons mak­ing tax­able supply;
• per­sons who are required to pay tax under reverse charge;
• per­son who are required to pay tax under sub-sec­tion (5) of sec­tion 9;
• non-res­i­dent tax­able per­sons mak­ing tax­able supply;
• per­sons who are required to deduct tax under sec­tion 51, whether or not sep­a­rate­ly reg­is­tered under this Act;
• per­sons who make tax­able sup­ply of goods or ser­vices or both on behalf of oth­er tax­able per­sons whether as an agent or otherwise;
• Input Ser­vice Dis­trib­u­tor, whether or not sep­a­rate­ly reg­is­tered under this

Com­pul­so­ry reg­is­tra­tion in cer­tain cases.

 

Act;

• per­sons who sup­ply goods or ser­vices or both, oth­er than sup­plies specified

 

under sub-sec­tion (5) of sec­tion 9, through such elec­tron­ic com­merce oper­a­tor who is required to col­lect tax at source under sec­tion 52;

• every elec­tron­ic com­merce operator;
• every per­son sup­ply­ing online infor­ma­tion and data­base access or retrieval ser­vices from a place out­side India to a per­son in India, oth­er than a reg­is­tered per­son; and
• such oth­er per­son or class of per­sons as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the

25. (1) Every per­son who is liable to be reg­is­tered under sec­tion 22 or sec­tion 24 shall apply for reg­is­tra­tion in every such State or Union ter­ri­to­ry in which he is so liable within

 

 

 

 

 

 

 

 

 

 

 

 

Pro­ce­dure for registration.

 

 

thir­ty days from the date on which he becomes liable to reg­is­tra­tion, in such man­ner and sub­ject to such con­di­tions as may be prescribed:

Pro­vid­ed that a casu­al tax­able per­son or a non-res­i­dent tax­able per­son shall apply for reg­is­tra­tion at least five days pri­or to the com­mence­ment of business.

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.

• A per­son seek­ing reg­is­tra­tion under this Act shall be grant­ed a sin­gle reg­is­tra­tion in a State or Union territory:

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.

• 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
• A per­son who has obtained or is required to obtain more than one reg­is­tra­tion, whether in one State or Union ter­ri­to­ry or more than one State or Union ter­ri­to­ry shall, in respect of each such reg­is­tra­tion, be treat­ed as dis­tinct per­sons for the pur­pos­es of this Act.

 

• Where a per­son who has obtained or is required to obtain reg­is­tra­tion in a State or Union ter­ri­to­ry in respect of an estab­lish­ment, has an estab­lish­ment in anoth­er State or Union ter­ri­to­ry, then such estab­lish­ments shall be treat­ed as estab­lish­ments of dis­tinct per­sons for the pur­pos­es of this
• Every per­son shall have a Per­ma­nent Account Num­ber issued under the Income- tax Act, 1961 in order to be eli­gi­ble for grant of registration:

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.

• 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
• Where a per­son who is liable to be reg­is­tered under this Act fails to obtain reg­is­tra­tion, the prop­er offi­cer may, with­out prej­u­dice to any action which may be tak­en under this Act or under any oth­er law for the time being in force, pro­ceed to reg­is­ter such per­son in such man­ner as may be
• Notwith­stand­ing any­thing con­tained in sub-sec­tion (1),––
  • 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
  • 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.

• 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

 

 

 

 

 

 

 

43  of 1961.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46  of 1947.

 

 

 

• A cer­tifi­cate of reg­is­tra­tion shall be issued in such form and with effect from such date as may be
• A reg­is­tra­tion or a Unique Iden­ti­ty Num­ber shall be deemed to have been grant­ed after the expiry of the peri­od pre­scribed under sub-sec­tion (10), if no defi­cien­cy has been com­mu­ni­cat­ed to the appli­cant with­in that

26. (1) The grant of reg­is­tra­tion or the Unique Iden­ti­ty Num­ber under the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act shall be deemed to be a grant of reg­is­tra­tion or the Unique Iden­ti­ty Num­ber under this Act sub­ject to the con­di­tion that the appli­ca­tion for reg­is­tra­tion or the Unique Iden­ti­ty Num­ber has not been reject­ed under this Act with­in the time spec­i­fied in sub-sec­tion (10) of section

(2) Notwith­stand­ing any­thing con­tained in sub-sec­tion (10) of sec­tion 25, any rejec­tion of appli­ca­tion for reg­is­tra­tion or the Unique Iden­ti­ty Num­ber under the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act shall be deemed to be a rejec­tion of appli­ca­tion for reg­is­tra­tion under this Act.

27. (1) The cer­tifi­cate of reg­is­tra­tion issued to a casu­al tax­able per­son or a non- res­i­dent tax­able per­son shall be valid for the peri­od spec­i­fied in the appli­ca­tion for reg­is­tra­tion or nine­ty days from the effec­tive date of reg­is­tra­tion, whichev­er is ear­li­er and such per­son shall make tax­able sup­plies only after the issuance of the cer­tifi­cate of registration:

Pro­vid­ed that the prop­er offi­cer may, on suf­fi­cient cause being shown by the said tax­able per­son, extend the said peri­od of nine­ty days by a fur­ther peri­od not exceed­ing nine­ty days.

• A casu­al tax­able per­son or a non-res­i­dent tax­able per­son shall, at the time of sub­mis­sion of appli­ca­tion for reg­is­tra­tion under sub-sec­tion (1) of sec­tion 25, make an advance deposit of tax in an amount equiv­a­lent to the esti­mat­ed tax lia­bil­i­ty of such per­son for the peri­od for which the reg­is­tra­tion is sought:

Pro­vid­ed that where any exten­sion of time is sought under sub-sec­tion (1), such tax­able per­son shall deposit an addi­tion­al amount of tax equiv­a­lent to the esti­mat­ed tax lia­bil­i­ty of such per­son for the peri­od for which the exten­sion is sought.

• The amount deposit­ed under sub-sec­tion (2) shall be cred­it­ed to the elec­tron­ic cash ledger of such per­son and shall be utilised in the man­ner pro­vid­ed under section

28. (1) Every reg­is­tered per­son and a per­son to whom a Unique Iden­ti­ty Num­ber has been assigned shall inform the prop­er offi­cer of any changes in the infor­ma­tion fur­nished at the time of reg­is­tra­tion or sub­se­quent there­to, in such form and man­ner and with­in such peri­od as may be

• The prop­er offi­cer may, on the basis of infor­ma­tion fur­nished under sub-sec­tion (1) or as ascer­tained by him, approve or reject amend­ments in the reg­is­tra­tion par­tic­u­lars in such man­ner and with­in such peri­od as may be prescribed:

Pro­vid­ed that approval of the prop­er offi­cer shall not be required in respect of amend­ment of such par­tic­u­lars as may be prescribed:

Pro­vid­ed fur­ther that the prop­er offi­cer shall not reject the appli­ca­tion for amend­ment in the reg­is­tra­tion par­tic­u­lars with­out giv­ing the per­son an oppor­tu­ni­ty of being heard.

• 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

29. (1) The prop­er offi­cer may, either on his own motion or on an appli­ca­tion filed by the reg­is­tered per­son or by his legal heirs, in case of death of such per­son, can­cel the

 

 

 

 

 

 

 

Deemed

reg­is­tra­tion.

 

 

 

 

 

 

 

 

 

 

 

Spe­cial

pro­vi­sions relat­ing to casu­al tax­able per­son and

non-res­i­dent taxable

per­son.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amend­ment of

reg­is­tra­tion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Can­cel­la­tion of

reg­is­tra­tion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revo­ca­tion of

can­cel­la­tion of

reg­is­tra­tion.

reg­is­tra­tion, in such man­ner and with­in such peri­od as may be pre­scribed, hav­ing regard to the cir­cum­stances where,––

• 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
• there is any change in the con­sti­tu­tion of the busi­ness; or
• 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
• The prop­er offi­cer may can­cel the reg­is­tra­tion of a per­son from such date, includ­ing any ret­ro­spec­tive date, as he may deem fit, where,–– 
  • a reg­is­tered per­son has con­tra­vened such pro­vi­sions of the Act or the rules made there­un­der as may be pre­scribed; or
  • a per­son pay­ing tax under sec­tion 10 has not fur­nished returns for three con­sec­u­tive tax peri­ods; or
  • any reg­is­tered per­son, oth­er than a per­son spec­i­fied in clause (b), has not fur­nished returns for a con­tin­u­ous peri­od of six months; or
  • 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
  • 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.

• 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
• The 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 can­cel­la­tion of reg­is­tra­tion under this
• Every reg­is­tered per­son whose reg­is­tra­tion is can­celled shall pay an amount, by way of deb­it in the elec­tron­ic cred­it ledger or elec­tron­ic cash ledger, equiv­a­lent to the cred­it of input tax in respect of inputs held in stock and inputs con­tained in semi-fin­ished or fin­ished goods held in stock or cap­i­tal goods or plant and machin­ery on the day imme­di­ate­ly pre­ced­ing the date of such can­cel­la­tion or the out­put tax payable on such goods, whichev­er is high­er, cal­cu­lat­ed in such man­ner as may be prescribed:

Pro­vid­ed that 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.

• The amount payable under sub-sec­tion (5) shall be cal­cu­lat­ed in such man­ner as may be

30. (1) Sub­ject to such con­di­tions as may be pre­scribed, any reg­is­tered per­son, whose reg­is­tra­tion is can­celled by the prop­er offi­cer on his own motion, may apply to such offi­cer for revo­ca­tion of can­cel­la­tion of the reg­is­tra­tion in the pre­scribed man­ner with­in thir­ty days from the date of ser­vice of the cancellation

 

 

 

• 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.

• 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

CHAPTER VII

TAX INVOICE, CREDIT AND DEBIT NOTES

31. (1) A reg­is­tered per­son sup­ply­ing tax­able goods shall, before or at the time of,—

• removal of goods for sup­ply to the recip­i­ent, where the sup­ply involves move­ment of goods; or
• deliv­ery of goods or mak­ing avail­able there­of to the recip­i­ent, in any other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax invoice.

 

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.

• 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––

• any oth­er doc­u­ment issued in rela­tion to the sup­ply shall be deemed to be a tax invoice; or
• tax invoice may not be

• Notwith­stand­ing any­thing con­tained in sub-sec­tions (1) and (2)––
  • 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;
  • 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;
  • a reg­is­tered per­son sup­ply­ing exempt­ed goods or ser­vices or both or pay­ing tax under the pro­vi­sions of sec­tion 10 shall issue, instead of a tax invoice, a bill of sup­ply con­tain­ing such par­tic­u­lars and in such man­ner as may be prescribed:

Pro­vid­ed that the reg­is­tered per­son may not issue a bill of sup­ply if the val­ue of the goods or ser­vices or both sup­plied is less than two hun­dred rupees sub­ject to such con­di­tions and in such man­ner as may be prescribed;

• 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;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro­hi­bi­tion of unau­tho­rised col­lec­tion of tax.

 

 

Amount of tax to be indi­cat­ed in tax invoice and oth­er documents.

 

Cred­it and deb­it notes.

• 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;
• 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;
• 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

• 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
• Sub­ject to the pro­vi­sions of clause (d) of sub-sec­tion (3), in case of con­tin­u­ous sup­ply of services,–– 
  • where the due date of pay­ment is ascer­tain­able from the con­tract, the invoice shall be issued on or before the due date of payment;
  • 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;
  • 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
• 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
• Notwith­stand­ing any­thing con­tained in sub-sec­tion (1), where the goods being sent or tak­en on approval for sale or return are removed before the sup­ply takes place, the invoice shall be issued before or at the time of sup­ply or six months from the date of removal, whichev­er is

Expla­na­tion.––For the pur­pos­es of this sec­tion, the expres­sion “tax invoice” shall include any revised invoice issued by the sup­pli­er in respect of a sup­ply made earlier.

32. (1) A per­son who is not a reg­is­tered per­son shall not col­lect in respect of any sup­ply of goods or ser­vices or both any amount by way of tax under this

• No reg­is­tered per­son shall col­lect tax except in accor­dance with the pro­vi­sions of this Act or the rules made

33. Notwith­stand­ing any­thing con­tained in this Act or any oth­er law for the time being in force, where any sup­ply is made for a con­sid­er­a­tion, every per­son who is liable to pay tax for such sup­ply shall promi­nent­ly indi­cate in all doc­u­ments relat­ing to assess­ment, tax invoice and oth­er like doc­u­ments, the amount of tax which shall form part of the price at which such sup­ply is
34. (1) 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 exceed the tax­able val­ue or tax payable in respect of such sup­ply, or where the goods sup­plied are returned by the recip­i­ent, or where goods or ser­vices or both sup­plied are found to be defi­cient, the reg­is­tered per­son, who has sup­plied such goods or ser­vices or both, may issue to the recip­i­ent a cred­it note con­tain­ing such par­tic­u­lars as may be

 

 

• 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.

• 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
• Any reg­is­tered per­son who issues a deb­it note in rela­tion to a sup­ply of goods or ser­vices or both shall declare the details of such deb­it note in the return for the month dur­ing which such deb­it note has been issued and the tax lia­bil­i­ty shall be adjust­ed in such man­ner as may be

Expla­na­tion.––For the pur­pos­es of this Act, the expres­sion “deb­it note” shall include a sup­ple­men­tary invoice.

 

CHAPTER VIII ACCOUNTS AND RECORDS

35. (1) Every reg­is­tered per­son shall keep and main­tain, at his prin­ci­pal place of busi­ness, as men­tioned in the cer­tifi­cate of reg­is­tra­tion, a true and cor­rect account of—

• pro­duc­tion or man­u­fac­ture of goods;
• inward and out­ward sup­ply of goods or ser­vices or both;
• stock of goods;
• input tax cred­it availed;
• out­put tax payable and paid; and
• 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.

• 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
• The Com­mis­sion­er may noti­fy a class of tax­able per­sons to main­tain addi­tion­al accounts or doc­u­ments for such pur­pose as may be specified
• Where the Com­mis­sion­er con­sid­ers that any class of tax­able per­son is not in a posi­tion to keep and main­tain accounts in accor­dance with the pro­vi­sions of this sec­tion, he may, for rea­sons to be record­ed in writ­ing, per­mit such class of tax­able per­sons to main­tain accounts in such man­ner as may be
• Every reg­is­tered per­son whose turnover dur­ing a finan­cial year exceeds the pre­scribed lim­it shall get his accounts audit­ed by a char­tered accoun­tant or a cost accountant

 

 

 

Accounts and oth­er records.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peri­od of

reten­tion of accounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fur­nish­ing details of out­ward supplies.

and shall sub­mit a copy of the audit­ed annu­al accounts, the rec­on­cil­i­a­tion state­ment under sub-sec­tion (2) of sec­tion 44 and such oth­er doc­u­ments in such form and man­ner as may be prescribed.

• Sub­ject to the pro­vi­sions of clause (h) of sub-sec­tion (5) of sec­tion 17, where the reg­is­tered per­son fails to account for the goods or ser­vices or both in accor­dance with the pro­vi­sions of sub-sec­tion (1), the prop­er offi­cer shall deter­mine the amount of tax payable on the goods or ser­vices or both that are not account­ed for, as if such goods or ser­vices or both had been sup­plied by such per­son and the pro­vi­sions of sec­tion 73 or sec­tion 74, as the case may be, shall, mutatis mutan­dis, apply for deter­mi­na­tion of such

36. Every reg­is­tered per­son required to keep and main­tain books of account or oth­er records in accor­dance with the pro­vi­sions of sub-sec­tion (1) of sec­tion 35 shall retain them until the expiry of sev­en­ty-two months from the due date of fur­nish­ing of annu­al return for the year per­tain­ing to such accounts and records:

Pro­vid­ed that a reg­is­tered per­son, who is a par­ty to an appeal or revi­sion or any oth­er pro­ceed­ings before any Appel­late Author­i­ty or Revi­sion­al Author­i­ty or Appel­late Tri­bunal or court, whether filed by him or by the Com­mis­sion­er, or is under inves­ti­ga­tion for an offence under Chap­ter XIX, shall retain the books of account and oth­er records per­tain­ing to the sub­ject mat­ter of such appeal or revi­sion or pro­ceed­ings or inves­ti­ga­tion for a peri­od of one year after final dis­pos­al of such appeal or revi­sion or pro­ceed­ings or inves­ti­ga­tion, or for the peri­od spec­i­fied above, whichev­er is later.

CHAPTER IX RETURNS

37. (1) Every reg­is­tered per­son, oth­er than an Input Ser­vice Dis­trib­u­tor, a non-res­i­dent tax­able per­son and a per­son pay­ing tax under the pro­vi­sions of sec­tion 10 or sec­tion 51 or sec­tion 52, shall fur­nish, elec­tron­i­cal­ly, in such form and man­ner as may be pre­scribed, the details of out­ward sup­plies of goods or ser­vices or both effect­ed dur­ing a tax peri­od on or before the tenth day of the month suc­ceed­ing the said tax peri­od and such details shall be com­mu­ni­cat­ed to the recip­i­ent of the said sup­plies with­in such time and in such man­ner as may be prescribed:

Pro­vid­ed that the reg­is­tered per­son shall not be allowed to fur­nish the details of out­ward sup­plies dur­ing the peri­od from the eleventh day to the fif­teenth day of the month suc­ceed­ing the tax period:

Pro­vid­ed fur­ther that the Com­mis­sion­er may, for rea­sons to be record­ed in writ­ing, by noti­fi­ca­tion, extend the time lim­it for fur­nish­ing such details for such class of tax­able per­sons as may be spec­i­fied therein:

Pro­vid­ed also that any exten­sion of time lim­it noti­fied by the Com­mis­sion­er of State tax or Com­mis­sion­er of Union ter­ri­to­ry tax shall be deemed to be noti­fied by the Commissioner.

• 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
• Any reg­is­tered per­son, who has fur­nished the details under sub-sec­tion (1) for any tax peri­od and which have remained unmatched under sec­tion 42 or sec­tion 43, shall, upon dis­cov­ery of any error or omis­sion there­in, rec­ti­fy such error or omis­sion in such man­ner as may be pre­scribed, and shall pay the tax and inter­est, if any, in case there is a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51  of 1975.

short pay­ment of tax on account of such error or omis­sion, in the return to be fur­nished for such tax period:

Pro­vid­ed that no rec­ti­fi­ca­tion of error or omis­sion in respect of the details fur­nished under sub-sec­tion (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. (1) Every reg­is­tered per­son, oth­er than an Input Ser­vice Dis­trib­u­tor or a non-res­i­dent tax­able per­son or a per­son pay­ing tax under the pro­vi­sions of sec­tion 10 or sec­tion 51 or sec­tion 52, shall ver­i­fy, val­i­date, mod­i­fy or delete, if required, the details relat­ing to out­ward sup­plies and cred­it or deb­it notes com­mu­ni­cat­ed under sub-sec­tion (1) of sec­tion 37 to pre­pare the details of his inward sup­plies and cred­it or deb­it notes and may include there­in, the details of inward sup­plies and cred­it or deb­it notes received by him in respect of such sup­plies that have not been declared by the sup­pli­er under sub-sec­tion (1) of section

• Every reg­is­tered per­son, oth­er than an Input Ser­vice Dis­trib­u­tor or a non-res­i­dent tax­able per­son or a per­son pay­ing tax under the pro­vi­sions of sec­tion 10 or sec­tion 51 or sec­tion 52, shall fur­nish, elec­tron­i­cal­ly, the details of inward sup­plies of tax­able goods or ser­vices or both, includ­ing inward sup­plies of goods or ser­vices or both on which the tax is payable on reverse charge basis under this Act and inward sup­plies of goods or ser­vices or both tax­able under the Inte­grat­ed Goods and Ser­vices Tax Act or on which inte­grat­ed goods and ser­vices tax is payable under sec­tion 3 of the Cus­toms Tar­iff Act, 1975, and cred­it or deb­it notes received in respect of such sup­plies dur­ing a tax peri­od after the tenth day but on or before the fif­teenth day of the month suc­ceed­ing the tax peri­od in such form and man­ner as may be prescribed:

Pro­vid­ed that the Com­mis­sion­er may, for rea­sons to be record­ed in writ­ing, by noti­fi­ca­tion, extend the time lim­it for fur­nish­ing such details for such class of tax­able per­sons as may 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.

• 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
• The details of sup­plies mod­i­fied, delet­ed or includ­ed by the recip­i­ent in the return fur­nished under sub-sec­tion (2) or sub-sec­tion (4) of sec­tion 39 shall be com­mu­ni­cat­ed to the sup­pli­er con­cerned in such man­ner and with­in such time as may be
• Any reg­is­tered per­son, who has fur­nished the details under sub-sec­tion (2) for any tax peri­od and which have remained unmatched under sec­tion 42 or sec­tion 43, shall, upon dis­cov­ery of any error or omis­sion there­in, rec­ti­fy such error or omis­sion in the tax peri­od dur­ing which such error or omis­sion is noticed in such man­ner as may be pre­scribed, and shall pay the tax and inter­est, if any, in case there is a short pay­ment of tax on account of such error or omis­sion, in the return to be fur­nished for such tax period:

Pro­vid­ed that no rec­ti­fi­ca­tion of error or omis­sion in respect of the details fur­nished under sub-sec­tion (2) shall be allowed after fur­nish­ing of the return under sec­tion 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

Fur­nish­ing details of inward supplies.

 

 

 

Fur­nish­ing of returns.

39. (1) Every reg­is­tered per­son, oth­er than an Input Ser­vice Dis­trib­u­tor or a non-res­i­dent tax­able per­son or a per­son pay­ing tax under the pro­vi­sions of sec­tion 10 or sec­tion 51 or sec­tion 52 shall, for every cal­en­dar month or part there­of, fur­nish, in such form and man­ner as may be pre­scribed, a return, elec­tron­i­cal­ly, of inward and out­ward sup­plies of goods or ser­vices or both, input tax cred­it availed, tax payable, tax paid and such oth­er par­tic­u­lars as may be pre­scribed, on or before the twen­ti­eth day of the month suc­ceed­ing such cal­en­dar month or part

• A reg­is­tered per­son pay­ing tax under the pro­vi­sions of sec­tion 10 shall, for each quar­ter or part there­of, fur­nish, in such form and man­ner as may be pre­scribed, a return, elec­tron­i­cal­ly, of turnover in the State or Union ter­ri­to­ry, inward sup­plies of goods or ser­vices or both, tax payable and tax paid with­in eigh­teen days after the end of such
• Every reg­is­tered per­son required to deduct tax at source under the pro­vi­sions of sec­tion 51 shall fur­nish, in such form and man­ner as may be pre­scribed, a return, elec­tron­i­cal­ly, for the month in which such deduc­tions have been made with­in ten days after the end of such
• Every tax­able per­son reg­is­tered as an Input Ser­vice Dis­trib­u­tor shall, for every cal­en­dar month or part there­of, fur­nish, in such form and man­ner as may be pre­scribed, a return, elec­tron­i­cal­ly, with­in thir­teen days after the end of such
• Every reg­is­tered non-res­i­dent tax­able per­son shall, for every cal­en­dar month or part there­of, fur­nish, in such form and man­ner as may be pre­scribed, a return, elec­tron­i­cal­ly, with­in twen­ty days after the end of a cal­en­dar month or with­in sev­en days after the last day of the peri­od of reg­is­tra­tion spec­i­fied under sub-sec­tion (1) of sec­tion 27, whichev­er is
• The Com­mis­sion­er may, for rea­sons to be record­ed in writ­ing, by noti­fi­ca­tion, extend the time lim­it for fur­nish­ing the returns under this sec­tion for such class of reg­is­tered per­sons as may be spec­i­fied therein:

Pro­vid­ed that any exten­sion of time lim­it noti­fied by the Com­mis­sion­er of State tax or Union ter­ri­to­ry tax shall be deemed to be noti­fied by the Commissioner.

• 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.
• Every reg­is­tered per­son who is required to fur­nish a return under sub-sec­tion (1) or sub-sec­tion (2) shall fur­nish a return for every tax peri­od whether or not any sup­plies of goods or ser­vices or both have been made dur­ing such tax
• Sub­ject to the pro­vi­sions of sec­tions 37 and 38, if any reg­is­tered per­son after fur­nish­ing a return under sub-sec­tion (1) or sub-sec­tion (2) or sub-sec­tion (3) or sub-sec­tion (4) or sub-sec­tion (5) dis­cov­ers any omis­sion or incor­rect par­tic­u­lars there­in, oth­er than as a result of scruti­ny, audit, inspec­tion or enforce­ment activ­i­ty by the tax author­i­ties, he shall rec­ti­fy such omis­sion or incor­rect par­tic­u­lars in the return to be fur­nished for the month or quar­ter dur­ing which such omis­sion or incor­rect par­tic­u­lars are noticed, sub­ject to pay­ment of inter­est under this Act:

Pro­vid­ed that no such rec­ti­fi­ca­tion of any omis­sion or incor­rect par­tic­u­lars shall be allowed after the due date for 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.

• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51  of 1975.

 

 

 

 

 

51  of 1975.

40. Every reg­is­tered per­son who has made out­ward sup­plies in the peri­od between the date on which he became liable to reg­is­tra­tion till the date on which reg­is­tra­tion has been grant­ed shall declare the same in the first return fur­nished by him after grant of registration.
41. (1) Every reg­is­tered per­son shall, sub­ject to such con­di­tions and restric­tions as may be pre­scribed, be enti­tled to take the cred­it of eli­gi­ble input tax, as self-assessed, in his return and such amount shall be cred­it­ed on a pro­vi­sion­al basis to his elec­tron­ic credit

(2) The cred­it referred to in sub-sec­tion (1) shall be utilised only for pay­ment of self- assessed out­put tax as per the return referred to in the said sub-section.

42. (1) The details of every inward sup­ply fur­nished by a reg­is­tered per­son (here­after in this sec­tion referred to as the “recip­i­ent”) for a tax peri­od shall, in such man­ner and with­in such time as may be pre­scribed, be matched––

• 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;
• 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
• for dupli­ca­tion of claims of input tax
• 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
• Where the input tax cred­it claimed by a recip­i­ent in respect of an inward sup­ply is in excess of the tax declared by the sup­pli­er for the same sup­ply or the out­ward sup­ply is not declared by the sup­pli­er in his valid returns, the dis­crep­an­cy shall be com­mu­ni­cat­ed to both such per­sons in such man­ner as may be
• The dupli­ca­tion of claims of input tax cred­it shall be com­mu­ni­cat­ed to the recip­i­ent in such man­ner as may be
• The amount in respect of which any dis­crep­an­cy is com­mu­ni­cat­ed under sub-sec­tion (3) and which is not rec­ti­fied by the sup­pli­er in his valid return for the month in which dis­crep­an­cy is com­mu­ni­cat­ed shall be added to the out­put tax lia­bil­i­ty of the recip­i­ent, in such man­ner as may be pre­scribed, in his return for the month suc­ceed­ing the month in which the dis­crep­an­cy is
• The amount claimed as input tax cred­it that is found to be in excess on account of dupli­ca­tion of claims shall be added to the out­put tax lia­bil­i­ty of the recip­i­ent in his return for the month in which the dupli­ca­tion is
• The recip­i­ent shall be eli­gi­ble to reduce, from his out­put tax lia­bil­i­ty, the amount added under sub-sec­tion (5), if the sup­pli­er declares the details of the invoice or deb­it note in his valid return with­in the time spec­i­fied in sub-sec­tion (9) of section
• A recip­i­ent in whose out­put tax lia­bil­i­ty any amount has been added under sub-sec­tion (5) or sub-sec­tion (6), shall be liable to pay inter­est at the rate spec­i­fied under sub-sec­tion (1) of sec­tion 50 on the amount so added from the date of avail­ing of cred­it till the cor­re­spond­ing addi­tions are made under the said sub-sections.
• Where any reduc­tion in out­put tax lia­bil­i­ty is accept­ed under sub-sec­tion (7), the inter­est paid under sub-sec­tion (8) shall be refund­ed to the recip­i­ent by cred­it­ing the amount in the cor­re­spond­ing head of his elec­tron­ic cash ledger in such man­ner as may be prescribed:

First return.

 

 

 

 

 

Claim of input tax cred­it and

pro­vi­sion­al accep­tance thereof.

 

 

 

Match­ing, rever­sal and reclaim of

input tax credit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Match­ing, rever­sal and reclaim of reduc­tion in out­put tax liability.

Pro­vid­ed that the amount of inter­est to be cred­it­ed in any case shall not exceed the amount of inter­est paid by the supplier.

• 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

43. (1) The details of every cred­it note relat­ing to out­ward sup­ply fur­nished by a reg­is­tered per­son (here­after in this sec­tion referred to as the “sup­pli­er”) for a tax peri­od shall, in such man­ner and with­in such time as may be pre­scribed, be matched––

• 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
• for dupli­ca­tion of claims for reduc­tion in out­put tax
• 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
• Where the reduc­tion of out­put tax lia­bil­i­ty in respect of out­ward sup­plies exceeds the cor­re­spond­ing reduc­tion in the claim for input tax cred­it or the cor­re­spond­ing cred­it note is not declared by the recip­i­ent in his valid returns, the dis­crep­an­cy shall be com­mu­ni­cat­ed to both such per­sons in such man­ner as may be
• The dupli­ca­tion of claims for reduc­tion in out­put tax lia­bil­i­ty shall be com­mu­ni­cat­ed to the sup­pli­er in such man­ner as may be
• The amount in respect of which any dis­crep­an­cy is com­mu­ni­cat­ed under sub-sec­tion (3) and which is not rec­ti­fied by the recip­i­ent in his valid return for the month in which dis­crep­an­cy is com­mu­ni­cat­ed shall be added to the out­put tax lia­bil­i­ty of the sup­pli­er, in such man­ner as may be pre­scribed, in his return for the month suc­ceed­ing the month in which the dis­crep­an­cy is
• The amount in respect of any reduc­tion in out­put tax lia­bil­i­ty that is found to be on account of dupli­ca­tion of claims shall be added to the out­put tax lia­bil­i­ty of the sup­pli­er in his return for the month in which such dupli­ca­tion is
• The sup­pli­er shall be eli­gi­ble to reduce, from his out­put tax lia­bil­i­ty, the amount added under sub-sec­tion (5) if the recip­i­ent declares the details of the cred­it note in his valid return with­in the time spec­i­fied in sub-sec­tion (9) of section
• A sup­pli­er in whose out­put tax lia­bil­i­ty any amount has been added under sub-sec­tion (5) or sub-sec­tion (6), shall be liable to pay inter­est at the rate spec­i­fied under sub-sec­tion (1) of sec­tion 50 in respect of the amount so added from the date of such claim for reduc­tion in the out­put tax lia­bil­i­ty till the cor­re­spond­ing addi­tions are made under the said sub-sections.
• Where any reduc­tion in out­put tax lia­bil­i­ty is accept­ed under sub-sec­tion (7), the inter­est paid under sub-sec­tion (8) shall be refund­ed to the sup­pli­er by cred­it­ing the amount in the cor­re­spond­ing head of his elec­tron­ic cash ledger in such man­ner as may be prescribed:

Pro­vid­ed that the amount of inter­est to be cred­it­ed in any case shall not exceed the amount of inter­est paid by the recipient.

• 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

 

 

 

44. (1) Every reg­is­tered per­son, oth­er than an Input Ser­vice Dis­trib­u­tor, a per­son pay­ing tax under sec­tion 51 or sec­tion 52, a casu­al tax­able per­son and a non-res­i­dent tax­able per­son, shall fur­nish an annu­al return for every finan­cial year elec­tron­i­cal­ly in such form and man­ner as may be pre­scribed on or before the thir­ty-first day of Decem­ber fol­low­ing the end of such financial

(2) Every reg­is­tered per­son who is required to get his accounts audit­ed in accor­dance with the pro­vi­sions of sub-sec­tion (5) of sec­tion 35 shall fur­nish, elec­tron­i­cal­ly, the annu­al return under sub-sec­tion (1) along with a copy of the audit­ed annu­al accounts and a rec­on­cil­i­a­tion state­ment, rec­on­cil­ing the val­ue of sup­plies declared in the return fur­nished for the finan­cial year with the audit­ed annu­al finan­cial state­ment, and such oth­er par­tic­u­lars as may be prescribed.

45. Every reg­is­tered per­son who is required to fur­nish a return under sub-sec­tion (1) of sec­tion 39 and whose reg­is­tra­tion has been can­celled shall fur­nish a final return with­in three months of the date of can­cel­la­tion or date of order of can­cel­la­tion, whichev­er is lat­er, in such form and man­ner as may be
46. Where a reg­is­tered per­son fails to fur­nish a return under sec­tion 39 or sec­tion 44 or sec­tion 45, a notice shall be issued requir­ing him to fur­nish such return with­in fif­teen days in such form and man­ner as may be
47. (1) Any reg­is­tered per­son who fails to fur­nish the details of out­ward or inward sup­plies required under sec­tion 37 or sec­tion 38 or returns required under sec­tion 39 or sec­tion 45 by the due date shall pay a late fee of one hun­dred rupees for every day dur­ing which such fail­ure con­tin­ues sub­ject to a max­i­mum amount of five thousand

(2) Any reg­is­tered per­son who fails to fur­nish the return required under sec­tion 44 by the due date shall be liable to pay a late fee of one hun­dred rupees for every day dur­ing which such fail­ure con­tin­ues sub­ject to a max­i­mum of an amount cal­cu­lat­ed at a quar­ter per cent. of his turnover in the State or Union territory.

48. (1) The man­ner of approval of goods and ser­vices tax prac­ti­tion­ers, their eli­gi­bil­i­ty con­di­tions, duties and oblig­a­tions, man­ner of removal and oth­er con­di­tions rel­e­vant for their func­tion­ing shall be such as may be

• A reg­is­tered per­son may autho­rise an approved goods and ser­vices tax prac­ti­tion­er to fur­nish the details of out­ward sup­plies under sec­tion 37, the details of inward sup­plies under sec­tion 38 and the return under sec­tion 39 or sec­tion 44 or sec­tion 45 in such man­ner as may be
• Notwith­stand­ing any­thing con­tained in sub-sec­tion (2), the respon­si­bil­i­ty for cor­rect­ness of any par­tic­u­lars fur­nished in the return or oth­er details filed by the goods and ser­vices tax prac­ti­tion­ers shall con­tin­ue to rest with the reg­is­tered per­son on whose behalf such return and details are

Annu­al return.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Final return.

 

 

 

 

Notice to return defaulters.

 

Levy of late fee.

 

 

 

 

 

 

 

 

 

 

 

Goods and ser­vices tax practitioners.

 

CHAPTER X PAYMENT OF TAX

49. (1) Every deposit made towards tax, inter­est, penal­ty, fee or any oth­er amount by a per­son by inter­net bank­ing or by using cred­it or deb­it cards or Nation­al Elec­tron­ic Fund Trans­fer or Real Time Gross Set­tle­ment or by such oth­er mode and sub­ject to such con­di­tions and restric­tions as may be pre­scribed, shall be cred­it­ed to the elec­tron­ic cash ledger of such per­son to be main­tained in such man­ner as may be

• The input tax cred­it as self-assessed in the return of a reg­is­tered per­son shall be cred­it­ed to his elec­tron­ic cred­it ledger, in accor­dance with sec­tion 41, to be main­tained in such man­ner as may be

 

 

 

Pay­ment of tax, inter­est, penal­ty and other

amounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inter­est on delayed

pay­ment of tax.

• The amount avail­able in the elec­tron­ic cash ledger may be used for mak­ing any pay­ment towards tax, inter­est, penal­ty, fees or any oth­er amount payable under the pro­vi­sions of this Act or the rules made there­un­der in such man­ner and sub­ject to such con­di­tions and with­in such time as may be
• The amount avail­able in the elec­tron­ic cred­it ledger may be used for mak­ing any pay­ment towards out­put tax under this Act or under the Inte­grat­ed Goods and Ser­vices Tax Act in such man­ner and sub­ject to such con­di­tions and with­in such time as may be
• The amount of input tax cred­it avail­able in the elec­tron­ic cred­it ledger of the reg­is­tered per­son on account of–– 
  • 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;
  • 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;
  • 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;
  • 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;
  • the cen­tral tax shall not be utilised towards pay­ment of State tax or Union ter­ri­to­ry tax; and
  • the State tax or Union ter­ri­to­ry tax shall not be utilised towards pay­ment of central
• 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
• All lia­bil­i­ties of a tax­able per­son under this Act shall be record­ed and main­tained in an elec­tron­ic lia­bil­i­ty reg­is­ter in such man­ner as may be
• Every tax­able per­son shall dis­charge his tax and oth­er dues under this Act or the rules made there­un­der in the fol­low­ing order, namely:–– 
  • self-assessed tax, and oth­er dues relat­ed to returns of pre­vi­ous tax periods;
  • self-assessed tax, and oth­er dues relat­ed to the return of the cur­rent tax period;
  • any oth­er amount payable under this Act or the rules made there­un­der includ­ing the demand deter­mined under sec­tion 73 or section
• 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

Expla­na­tion.––For the pur­pos­es of this  section,—

• 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;
• the expres­sion,—
  • “tax dues” means the tax payable under this Act and does not include inter­est, fee and penal­ty; and
  • “oth­er dues” means inter­est, penal­ty, fee or any oth­er amount payable under this Act or the rules made

50. (1) Every per­son who is liable to pay tax in accor­dance with the pro­vi­sions of this Act or the rules made there­un­der, but fails to pay the tax or any part there­of to the Gov­ern­ment with­in the peri­od pre­scribed, shall for the peri­od for which the tax or any part there­of remains unpaid, pay, on his own, inter­est at such rate, not exceed­ing eigh­teen per cent., as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the

 

 

 

• The inter­est under sub-sec­tion (1) shall be cal­cu­lat­ed, in such man­ner as may be pre­scribed, from the day suc­ceed­ing the day on which such tax was due to be
• A tax­able per­son who makes an undue or excess claim of input tax cred­it under sub-sec­tion (10) of sec­tion 42 or undue or excess reduc­tion in out­put tax lia­bil­i­ty under sub-sec­tion (10) of sec­tion 43, shall pay inter­est on such undue or excess claim or on such undue or excess reduc­tion, as the case may be, at such rate not exceed­ing twen­ty-four per cent., as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the

51. (1) Notwith­stand­ing any­thing to the con­trary con­tained in this Act, the Gov­ern­ment may mandate,––

• a depart­ment or estab­lish­ment of the Cen­tral Gov­ern­ment or State Gov­ern­ment; or
• local author­i­ty; or
• Gov­ern­men­tal agen­cies; or
• 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.

• 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
• The deduc­tor shall fur­nish to the deductee a cer­tifi­cate men­tion­ing there­in the con­tract val­ue, rate of deduc­tion, amount deduct­ed, amount paid to the Gov­ern­ment and such oth­er par­tic­u­lars in such man­ner as may be
• If any deduc­tor fails to fur­nish to the deductee the cer­tifi­cate, after deduct­ing the tax at source, with­in five days of cred­it­ing the amount so deduct­ed to the Gov­ern­ment, the deduc­tor shall pay, by way of a late fee, a sum of one hun­dred rupees per day from the day after the expiry of such five days peri­od until the fail­ure is rec­ti­fied, sub­ject to a max­i­mum amount of five thousand
• The deductee shall claim cred­it, in his elec­tron­ic cash ledger, of the tax deduct­ed and reflect­ed in the return of the deduc­tor fur­nished under sub-sec­tion (3) of sec­tion 39, in such man­ner as may be
• If any deduc­tor fails to pay to the Gov­ern­ment the amount deduct­ed as tax under sub-sec­tion (1), he shall pay inter­est in accor­dance with the pro­vi­sions of sub-sec­tion (1) of sec­tion 50, in addi­tion to the amount of tax
• The deter­mi­na­tion of the amount in default under this sec­tion shall be made in the man­ner spec­i­fied in sec­tion 73 or section
• The refund to the deduc­tor or the deductee aris­ing on account of excess or erro­neous deduc­tion shall be dealt with in accor­dance with the pro­vi­sions of sec­tion 54:

Pro­vid­ed that no refund to the deduc­tor shall be grant­ed, if the amount deduct­ed has been cred­it­ed to the elec­tron­ic cash ledger of the deductee.

 

 

 

 

 

 

 

 

 

 

Tax deduc­tion at  source.

 

 

 

Col­lec­tion of tax  at source.

52. (1) Notwith­stand­ing any­thing to the con­trary con­tained in this Act, every elec­tron­ic com­merce oper­a­tor (here­after in this sec­tion referred to as the “oper­a­tor”), not being an agent, shall col­lect an amount cal­cu­lat­ed at such rate not exceed­ing one per , as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the Coun­cil, of the net val­ue of tax­able sup­plies made through it by oth­er sup­pli­ers where the con­sid­er­a­tion with respect to such sup­plies is to be col­lect­ed by the operator.

Expla­na­tion.––For the pur­pos­es of this sub-sec­tion, the expres­sion “net val­ue of tax­able sup­plies” shall mean the aggre­gate val­ue of tax­able sup­plies of goods or ser­vices or both, oth­er than ser­vices noti­fied under sub-sec­tion (5) of sec­tion 9, made dur­ing any month by all reg­is­tered per­sons through the oper­a­tor reduced by the aggre­gate val­ue of tax­able sup­plies returned to the sup­pli­ers dur­ing the said month.

• The pow­er to col­lect the amount spec­i­fied in sub-sec­tion (1) shall be with­out prej­u­dice to any oth­er mode of recov­ery from the
• The amount col­lect­ed under sub-sec­tion (1) shall be paid to the Gov­ern­ment by the oper­a­tor with­in ten days after the end of the month in which such col­lec­tion is made, in such man­ner as may be
• Every oper­a­tor who col­lects the amount spec­i­fied in sub-sec­tion (1) shall fur­nish a state­ment, elec­tron­i­cal­ly, con­tain­ing the details of out­ward sup­plies of goods or ser­vices or both effect­ed through it, includ­ing the sup­plies of goods or ser­vices or both returned through it, and the amount col­lect­ed under sub-sec­tion (1) dur­ing a month, in such form and man­ner as may be pre­scribed, with­in ten days after the end of such
• Every oper­a­tor who col­lects the amount spec­i­fied in sub-sec­tion (1) shall fur­nish an annu­al state­ment, elec­tron­i­cal­ly, con­tain­ing the details of out­ward sup­plies of goods or ser­vices or both effect­ed through it, includ­ing the sup­plies of goods or ser­vices or both returned through it, and the amount col­lect­ed under the said sub-sec­tion dur­ing the finan­cial year, in such form and man­ner as may be pre­scribed, before the thir­ty first day of Decem­ber fol­low­ing the end of such financial
• If any oper­a­tor after fur­nish­ing a state­ment under sub-sec­tion (4) dis­cov­ers any omis­sion or incor­rect par­tic­u­lars there­in, oth­er than as a result of scruti­ny, audit, inspec­tion or enforce­ment activ­i­ty by the tax author­i­ties, he shall rec­ti­fy such omis­sion or incor­rect par­tic­u­lars in the state­ment to be fur­nished for the month dur­ing which such omis­sion or incor­rect par­tic­u­lars are noticed, sub­ject to pay­ment of inter­est, as spec­i­fied in sub-sec­tion (1) of sec­tion 50:

Pro­vid­ed that no such rec­ti­fi­ca­tion of any omis­sion or incor­rect par­tic­u­lars shall be allowed after the 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.

• 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.
• The details of sup­plies fur­nished by every oper­a­tor under sub-sec­tion (4) shall be matched with the cor­re­spond­ing details of out­ward sup­plies fur­nished by the con­cerned sup­pli­er reg­is­tered under this Act in such man­ner and with­in such time as may be
• Where the details of out­ward sup­plies fur­nished by the oper­a­tor under sub-sec­tion (4) do not match with the cor­re­spond­ing details fur­nished by the sup­pli­er under sec­tion 37, the dis­crep­an­cy shall be com­mu­ni­cat­ed to both per­sons in such man­ner and with­in such time as may be
• The amount in respect of which any dis­crep­an­cy is com­mu­ni­cat­ed under sub-sec­tion (9) and which is not rec­ti­fied by the sup­pli­er in his valid return or the oper­a­tor in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46  of 1947.

his state­ment for the month in which dis­crep­an­cy is com­mu­ni­cat­ed, shall be added to the out­put tax lia­bil­i­ty of the said sup­pli­er, where the val­ue of out­ward sup­plies fur­nished by the oper­a­tor is more than the val­ue of out­ward sup­plies fur­nished by the sup­pli­er, in his return for the month suc­ceed­ing the month in which the dis­crep­an­cy is com­mu­ni­cat­ed in such man­ner as may be prescribed.

• The con­cerned sup­pli­er, in whose out­put tax lia­bil­i­ty any amount has been added under sub-sec­tion (10), shall pay the tax payable in respect of such sup­ply along with inter­est, at the rate spec­i­fied under sub-sec­tion (1) of sec­tion 50 on the amount so added from the date such tax was due till the date of its
• 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— 
  • sup­plies of goods or ser­vices or both effect­ed through such oper­a­tor dur­ing any peri­od; or
  • 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.

• 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.
• Any per­son who fails to fur­nish the infor­ma­tion required by the notice served under sub-sec­tion (12) shall, with­out prej­u­dice to any action that may be tak­en under sec­tion 122, be liable to a penal­ty which may extend to twen­ty-five thousand

Expla­na­tion.—For the pur­pos­es of this sec­tion, the expres­sion “con­cerned sup­pli­er” shall mean the sup­pli­er of goods or ser­vices or both mak­ing sup­plies through the operator.

53. On util­i­sa­tion of input tax cred­it availed under this Act for pay­ment of tax dues under the Inte­grat­ed Goods and Ser­vices Tax Act in accor­dance with the pro­vi­sions of sub-sec­tion (5) of sec­tion 49, as reflect­ed in the valid return fur­nished under sub-sec­tion (1) of sec­tion 39, the amount col­lect­ed as cen­tral tax shall stand reduced by an amount equal to such cred­it so utilised and the Cen­tral Gov­ern­ment shall trans­fer an amount equal to the amount so reduced from the cen­tral tax account to the inte­grat­ed tax account in such man­ner and with­in such time as may be

CHAPTER XI REFUNDS

54. (1) Any per­son claim­ing refund of any tax and inter­est, if any, paid on such tax or any oth­er amount paid by him, may make an appli­ca­tion before the expiry of two years from the rel­e­vant date in such form and man­ner as may be prescribed:

Pro­vid­ed that a reg­is­tered per­son, claim­ing refund of any bal­ance in the elec­tron­ic cash ledger in accor­dance with the pro­vi­sions of sub-sec­tion (6) of sec­tion 49, may claim such refund in the return fur­nished under sec­tion 39 in such man­ner as may be prescribed.

• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trans­fer of input tax

cred­it.

 

 

 

 

 

 

 

 

 

 

Refund  of tax.

 

 

• Sub­ject to the pro­vi­sions of sub-sec­tion (10), a reg­is­tered per­son may claim refund of any unutilised input tax cred­it at the end of any tax period:

Pro­vid­ed that no refund of unutilised input tax cred­it shall be allowed in cas­es oth­er than––

• zero rat­ed sup­plies made with­out pay­ment of tax;
• where the cred­it has accu­mu­lat­ed on account of rate of tax on inputs being high­er than the rate of tax on out­put sup­plies (oth­er than nil rat­ed or ful­ly exempt sup­plies), except sup­plies of goods or ser­vices or both as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the Council:

Pro­vid­ed fur­ther that no refund of unutilised input tax cred­it shall be allowed in cas­es where the goods export­ed out of India are sub­ject­ed to export duty:

Pro­vid­ed also that no refund of input tax cred­it shall be allowed, if the sup­pli­er of goods or ser­vices or both avails of draw­back in respect of cen­tral tax or claims refund of the inte­grat­ed tax paid on such supplies.

• The appli­ca­tion shall be accom­pa­nied by—
• such doc­u­men­tary evi­dence as may be pre­scribed to estab­lish that a refund is due to the appli­cant; and
• 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.

• 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
• Notwith­stand­ing any­thing con­tained in sub-sec­tion (5), the prop­er offi­cer may, in the case of any claim for refund on account of zero-rat­ed sup­ply of goods or ser­vices or both made by reg­is­tered per­sons, oth­er than such cat­e­go­ry of reg­is­tered per­sons as may be noti­fied by the Gov­ern­ment on the rec­om­men­da­tions of the Coun­cil, refund on a pro­vi­sion­al basis, nine­ty per of the total amount so claimed, exclud­ing the amount of input tax cred­it pro­vi­sion­al­ly accept­ed, in such man­ner and sub­ject to such con­di­tions, lim­i­ta­tions and safe­guards as may be pre­scribed and there­after make an order under sub-sec­tion (5) for final set­tle­ment of the refund claim after due ver­i­fi­ca­tion of doc­u­ments fur­nished by the applicant.
• The prop­er offi­cer shall issue the order under sub-sec­tion (5) with­in six­ty days from the date of receipt of appli­ca­tion com­plete in all
• 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—
• 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;
• refund of unutilised input tax cred­it under sub-sec­tion (3);

 

 

• 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;
• refund of tax in pur­suance of sec­tion 77;
• 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
• the tax or inter­est borne by such oth­er class of appli­cants as the Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, by notification,
• 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).
• 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—
• 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;
• 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.

• 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
• Where a refund is with­held under sub-sec­tion (11), the tax­able per­son shall, notwith­stand­ing any­thing con­tained in sec­tion 56, be enti­tled to inter­est at such rate not exceed­ing six per cent. as may be noti­fied on the rec­om­men­da­tions of the Coun­cil, if as a result of the appeal or fur­ther pro­ceed­ings he becomes enti­tled to
• Notwith­stand­ing any­thing to the con­trary con­tained in this sec­tion, the amount of advance tax deposit­ed by a casu­al tax­able per­son or a non-res­i­dent tax­able per­son under sub-sec­tion (2) of sec­tion 27, shall not be refund­ed unless such per­son has, in respect of the entire peri­od for which the cer­tifi­cate of reg­is­tra­tion grant­ed to him had remained in force, fur­nished all the returns required under section
• Notwith­stand­ing any­thing con­tained in this sec­tion, no refund under sub-sec­tion (5) or sub-sec­tion (6) shall be paid to an appli­cant, if the amount is less than one thousand

Expla­na­tion.—For the pur­pos­es of this  section,––

• “refund” includes refund of tax paid on zero-rat­ed sup­plies of goods or ser­vices or both or on inputs or input ser­vices used in mak­ing such zero-rat­ed sup­plies, or refund of tax on the sup­ply of goods regard­ed as deemed exports, or refund of unutilised input tax cred­it as pro­vid­ed under sub-sec­tion (3).
• “rel­e­vant date” means— 
  • 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,––

 

 

• if the goods are export­ed by sea or air, the date on which the ship or the air­craft in which such goods are loaded, leaves India; or
• if the goods are export­ed by land, the date on which such goods pass the fron­tier; or
• if the goods are export­ed by post, the date of despatch of goods by the Post Office con­cerned to a place out­side India;

• 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;
• 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–– 
  • receipt of pay­ment in con­vert­ible for­eign exchange, where the sup­ply of ser­vices had been com­plet­ed pri­or to the receipt of such pay­ment; or

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refund in cer­tain cases.

 

 

 

 

 

 

 

 

Inter­est on delayed refunds.

• issue of invoice, where pay­ment for the ser­vices had been received in advance pri­or to the date of issue of the invoice;

• 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;
• 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;
• 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;
• in the case of a per­son, oth­er than the sup­pli­er, the date of receipt of goods or ser­vices or both by such per­son; and
• in any oth­er case, the date of pay­ment of

55. The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, spec­i­fy 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 any oth­er per­son or class of per­sons as may be spec­i­fied in this behalf, who shall, sub­ject to such con­di­tions and restric­tions as may be pre­scribed, be enti­tled to claim a refund of tax­es paid on the noti­fied sup­plies of goods or ser­vices or both received by
56. If any tax ordered to be refund­ed under sub-sec­tion (5) of sec­tion 54 to any appli­cant is not refund­ed with­in six­ty days from the date of receipt of appli­ca­tion under sub- sec­tion (1) of that sec­tion, inter­est at such rate not exceed­ing six per as may be spec­i­fied in the noti­fi­ca­tion issued 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 under the said sub-sec­tion till the date of refund of such tax:

Pro­vid­ed that where any claim of refund aris­es from an order passed by an 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46   of   1947.

 

 

 

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. The Gov­ern­ment shall con­sti­tute a Fund, to be called the Con­sumer Wel­fare Fund and there shall be cred­it­ed to the Fund,—

• the amount referred to in sub-sec­tion (5) of sec­tion 54;
• any income from invest­ment of the amount cred­it­ed to the Fund; and
• such oth­er monies received by it, in such man­ner as may be

58. (1) All sums cred­it­ed to the Fund shall be utilised by the Gov­ern­ment for the wel­fare of the con­sumers in such man­ner as may be

(2) The Gov­ern­ment or the author­i­ty spec­i­fied by it shall main­tain prop­er and sep­a­rate account and oth­er rel­e­vant records in rela­tion to the Fund and pre­pare an annu­al state­ment of accounts in such form as may be pre­scribed in con­sul­ta­tion with the Comp­trol­ler and Audi­tor-Gen­er­al of India.

 

 

 

 

 

 

 

 

 

 

Con­sumer Wel­fare Fund.

 

 

 

 

 

 

 

 

 

Util­i­sa­tion of Fund.

 

CHAPTER XII ASSESSMENT

59. Every reg­is­tered per­son shall self-assess the tax­es payable under this Act and fur­nish a return for each tax peri­od as spec­i­fied under section
60. (1) Sub­ject to the pro­vi­sions of sub-sec­tion (2), where the tax­able per­son is unable to deter­mine the val­ue of goods or ser­vices or both or deter­mine the rate of tax applic­a­ble there­to, he may request the prop­er offi­cer in writ­ing giv­ing rea­sons for pay­ment of tax on a pro­vi­sion­al basis and the prop­er offi­cer shall pass an order, with­in a peri­od not lat­er than nine­ty days from the date of receipt of such request, allow­ing pay­ment of tax on pro­vi­sion­al basis at such rate or on such val­ue as may be spec­i­fied by

• The pay­ment of tax on pro­vi­sion­al basis may be allowed, if the tax­able per­son exe­cutes a bond in such form as may be pre­scribed, and with such sure­ty or secu­ri­ty as the prop­er offi­cer may deem fit, bind­ing the tax­able per­son for pay­ment of the dif­fer­ence between the amount of tax as may be final­ly assessed and the amount of tax provisionally
• The prop­er offi­cer shall, with­in a peri­od not exceed­ing six months from the date of the com­mu­ni­ca­tion of the order issued under sub-sec­tion (1), pass the final assess­ment order after tak­ing into account such infor­ma­tion as may be required for final­iz­ing the assessment:

Pro­vid­ed that the peri­od spec­i­fied in this sub-sec­tion may, on suf­fi­cient cause being shown and for rea­sons to be record­ed in writ­ing, be extend­ed by the Joint Com­mis­sion­er or Addi­tion­al Com­mis­sion­er for a fur­ther peri­od not exceed­ing six months and by the Com­mis­sion­er for such fur­ther peri­od not exceed­ing four years.

• 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

 

 

 

Self- assess­ment.

 

Pro­vi­sion­al assessment.

 

 

 

 

 

 

 

 

 

 

 

Scruti­ny of returns.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assess­ment of non-fil­ers of returns.

 

 

 

 

 

 

 

 

 

 

 

 

Assess­ment of unregistered

per­sons.

 

 

 

 

 

 

 

 

 

 

Sum­ma­ry assess­ment in cer­tain spe­cial cases.

pay­ment, whether such amount is paid before or after the issuance of order for final assessment.

• Where the reg­is­tered per­son is enti­tled to a refund con­se­quent to the order of final assess­ment under sub-sec­tion (3), sub­ject to the pro­vi­sions of sub-sec­tion (8) of sec­tion 54, inter­est shall be paid on such refund as pro­vid­ed in section

61. (1) The prop­er offi­cer may scru­ti­nize the return and relat­ed par­tic­u­lars fur­nished by the reg­is­tered per­son to ver­i­fy the cor­rect­ness of the return and inform him of the dis­crep­an­cies noticed, if any, in such man­ner as may be pre­scribed and seek his explanation

• In case the expla­na­tion is found accept­able, the reg­is­tered per­son shall be informed accord­ing­ly and no fur­ther action shall be tak­en in this
• In case no sat­is­fac­to­ry expla­na­tion is fur­nished with­in a peri­od of thir­ty days of being informed by the prop­er offi­cer or such fur­ther peri­od as may be per­mit­ted by him or where the reg­is­tered per­son, after accept­ing the dis­crep­an­cies, fails to take the cor­rec­tive mea­sure in his return for the month in which the dis­crep­an­cy is accept­ed, the prop­er offi­cer may ini­ti­ate appro­pri­ate action includ­ing those under sec­tion 65 or sec­tion 66 or sec­tion 67, or pro­ceed to deter­mine the tax and oth­er dues under sec­tion 73 or section

62. (1) Notwith­stand­ing any­thing to the con­trary con­tained in sec­tion 73 or sec­tion 74, where a reg­is­tered per­son fails to fur­nish the return under sec­tion 39 or sec­tion 45, even after the ser­vice of a notice under sec­tion 46, the prop­er offi­cer may pro­ceed to assess the tax lia­bil­i­ty of the said per­son to the best of his judge­ment tak­ing into account all the rel­e­vant mate­r­i­al which is avail­able or which he has gath­ered and issue an assess­ment order with­in a peri­od of five years from the date spec­i­fied under sec­tion 44 for fur­nish­ing of the annu­al return for the finan­cial year to which the tax not paid

(2) Where the reg­is­tered per­son fur­nish­es a valid return with­in thir­ty days of the ser­vice of the assess­ment order under sub-sec­tion (1), the said assess­ment order shall be deemed to have been with­drawn but the lia­bil­i­ty for pay­ment of inter­est under sub-sec­tion (1) of sec­tion 50 or for pay­ment of late fee under sec­tion 47 shall continue.

63. 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. (1) The prop­er offi­cer may, on any evi­dence show­ing a tax lia­bil­i­ty of a per­son com­ing to his notice, with the pre­vi­ous per­mis­sion of Addi­tion­al Com­mis­sion­er or Joint Com­mis­sion­er, pro­ceed to assess the tax lia­bil­i­ty of such per­son to pro­tect the inter­est of rev­enue and issue an assess­ment order, if he has suf­fi­cient grounds to believe that any delay in doing so may adverse­ly affect the inter­est of revenue:

Pro­vid­ed that where the tax­able per­son to whom the lia­bil­i­ty per­tains is not ascer­tain­able and such lia­bil­i­ty per­tains to sup­ply of goods, the per­son in charge of such goods shall be deemed to be the tax­able per­son liable to be assessed and liable to pay tax and any oth­er amount due under this section.

• On an appli­ca­tion made by the tax­able per­son with­in thir­ty days from the date of receipt of order passed under sub-sec­tion (1) or on his own motion, if the Addi­tion­al Com­mis­sion­er or Joint Com­mis­sion­er con­sid­ers that such order is erro­neous, he may with­draw such order and fol­low the pro­ce­dure laid down in sec­tion 73 or section

 

 

 

CHAPTER XIII AUDIT

65. (1) The Com­mis­sion­er or any offi­cer autho­rised by him, by way of a gen­er­al or a spe­cif­ic order, may under­take audit of any reg­is­tered per­son for such peri­od, at such fre­quen­cy and in such man­ner as may be 
    • The offi­cers referred to in sub-sec­tion (1) may con­duct audit at the place of busi­ness of the reg­is­tered per­son or in their
    • The reg­is­tered per­son shall be informed by way of a notice not less than fif­teen work­ing days pri­or to the con­duct of audit in such man­ner as may be
    • The audit under sub-sec­tion (1) shall be com­plet­ed with­in a peri­od of three months from the date of com­mence­ment of the audit:

Pro­vid­ed that where the Com­mis­sion­er is sat­is­fied that audit in respect of such reg­is­tered per­son can­not be com­plet­ed with­in three months, he may, for the rea­sons to be record­ed in writ­ing, extend the peri­od by a fur­ther peri­od not exceed­ing six months.

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.

• Dur­ing the course of audit, the autho­rised offi­cer may require the reg­is­tered person,—

 

 

 

Audit by tax authorities.

 

• to afford him the nec­es­sary facil­i­ty to ver­i­fy the books of account or oth­er doc­u­ments as he may require;
• to fur­nish such infor­ma­tion as he may require and ren­der assis­tance for time­ly com­ple­tion of the

• On con­clu­sion of audit, the prop­er offi­cer shall, with­in thir­ty days, inform the reg­is­tered per­son, whose records are audit­ed, about the find­ings, his rights and oblig­a­tions and the rea­sons for such
• Where the audit con­duct­ed under sub-sec­tion (1) results in detec­tion of tax not paid or short paid or erro­neous­ly refund­ed, or input tax cred­it wrong­ly availed or utilised, the prop­er offi­cer may ini­ti­ate action under sec­tion 73 or section

66. (1) If at any stage of scruti­ny, inquiry, inves­ti­ga­tion or any oth­er pro­ceed­ings before him, any offi­cer not below the rank of Assis­tant Com­mis­sion­er, hav­ing regard to the nature and com­plex­i­ty of the case and the inter­est of rev­enue, is of the opin­ion that the val­ue has not been cor­rect­ly declared or the cred­it availed is not with­in the nor­mal lim­its, he may, with the pri­or approval of the Com­mis­sion­er, direct such reg­is­tered per­son by a com­mu­ni­ca­tion in writ­ing to get his records includ­ing books of account exam­ined and audit­ed by a char­tered accoun­tant or a cost accoun­tant as may be nom­i­nat­ed by the

• The char­tered accoun­tant or cost accoun­tant so nom­i­nat­ed shall, with­in the peri­od of nine­ty days, sub­mit a report of such audit duly signed and cer­ti­fied by him to the said Assis­tant Com­mis­sion­er men­tion­ing there­in such oth­er par­tic­u­lars as may be specified:

Pro­vid­ed that the Assis­tant Com­mis­sion­er may, on an appli­ca­tion made to him in this behalf by the reg­is­tered per­son or the char­tered accoun­tant or cost accoun­tant or for any mate­r­i­al and suf­fi­cient rea­son, extend the said peri­od by a fur­ther peri­od of nine­ty days.

• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spe­cial audit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pow­er of

inspec­tion, search and seizure.

• The reg­is­tered per­son shall be giv­en an oppor­tu­ni­ty of being heard in respect of any mate­r­i­al gath­ered on the basis of spe­cial audit under sub-sec­tion (1) which is pro­posed to be used in any pro­ceed­ings against him under this Act or the rules made
• The expens­es of the exam­i­na­tion and audit of records under sub-sec­tion (1), includ­ing the remu­ner­a­tion of such char­tered accoun­tant or cost accoun­tant, shall be deter­mined and paid by the Com­mis­sion­er and such deter­mi­na­tion shall be
• Where the spe­cial audit con­duct­ed under sub-sec­tion (1) results in detec­tion of tax not paid or short paid or erro­neous­ly refund­ed, or input tax cred­it wrong­ly availed or utilised, the prop­er offi­cer may ini­ti­ate action under sec­tion 73 or section

CHAPTER XIV

INSPECTION, SEARCH, SEIZURE AND ARREST

67. (1) Where the prop­er offi­cer, not below the rank of Joint Com­mis­sion­er, has rea­sons to believe that––

• 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
• 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.

• Where the prop­er offi­cer, not below the rank of Joint Com­mis­sion­er, either pur­suant to an inspec­tion car­ried out under sub-sec­tion (1) or oth­er­wise, has rea­sons to believe that any goods liable to con­fis­ca­tion or any doc­u­ments or books or things, which in his opin­ion shall be use­ful for or rel­e­vant to any pro­ceed­ings under this Act, are secret­ed in any place, he may autho­rise in writ­ing any oth­er offi­cer of cen­tral tax to search and seize or may him­self search and seize such goods, doc­u­ments or books or things:

Pro­vid­ed that where it is not prac­ti­ca­ble to seize any such goods, the prop­er offi­cer, or any offi­cer autho­rised by him, may serve on the own­er or the cus­to­di­an of the goods an order that he shall not remove, part with, or oth­er­wise deal with the goods except with the pre­vi­ous per­mis­sion of such officer:

Pro­vid­ed fur­ther that the doc­u­ments or books or things so seized shall be retained by such offi­cer only for so long as may be nec­es­sary for their exam­i­na­tion and for any inquiry or pro­ceed­ings under this Act.

• 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.
• The offi­cer autho­rised under sub-sec­tion (2) shall have the pow­er to seal or break open the door of any premis­es or to break open any almi­rah, elec­tron­ic devices, box, recep­ta­cle in which any goods, accounts, reg­is­ters or doc­u­ments of the per­son are sus­pect­ed to be con­cealed, where access to such premis­es, almi­rah, elec­tron­ic devices, box or recep­ta­cle is denied.
• The per­son from whose cus­tody any doc­u­ments are seized under sub-sec­tion (2) shall be enti­tled to make copies there­of or take extracts there­from in the pres­ence of an

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2  of 1974.

autho­rised offi­cer at such place and time as such offi­cer may indi­cate in this behalf except where mak­ing such copies or tak­ing such extracts may, in the opin­ion of the prop­er offi­cer, prej­u­di­cial­ly affect the investigation.

• The goods so seized under sub-sec­tion (2) shall be released, on a pro­vi­sion­al basis, upon exe­cu­tion of a bond and fur­nish­ing of a secu­ri­ty, in such man­ner and of such quan­tum, respec­tive­ly, as may be pre­scribed or on pay­ment of applic­a­ble tax, inter­est and penal­ty payable, as the case may
• Where any goods are seized under sub-sec­tion (2) and no notice in respect there­of is giv­en with­in six months of the seizure of the goods, the goods shall be returned to the per­son from whose pos­ses­sion they were seized:

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.

• 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
• Where any goods, being goods spec­i­fied under sub-sec­tion (8), have been seized by a prop­er offi­cer, or any offi­cer autho­rised by him under sub-sec­tion (2), he shall pre­pare an inven­to­ry of such goods in such man­ner as may be
• The pro­vi­sions of the Code of Crim­i­nal Pro­ce­dure, 1973, relat­ing to search and seizure, shall, so far as may be, apply to search and seizure under this sec­tion sub­ject to the mod­i­fi­ca­tion that sub-sec­tion (5) of sec­tion 165 of the said Code shall have effect as if for the word “Mag­is­trate”, wher­ev­er it occurs, the word “Com­mis­sion­er” were
• Where the prop­er offi­cer has rea­sons to believe that any per­son has evad­ed or is attempt­ing to evade the pay­ment of any tax, he may, for rea­sons to be record­ed in writ­ing, seize the accounts, reg­is­ters or doc­u­ments of such per­son pro­duced before him and shall grant a receipt for the same, and shall retain the same for so long as may be nec­es­sary in con­nec­tion with any pro­ceed­ings under this Act or the rules made there­un­der for
• The Com­mis­sion­er or an offi­cer autho­rised by him may cause pur­chase of any goods or ser­vices or both by any per­son autho­rised by him from the busi­ness premis­es of any tax­able per­son, to check the issue of tax invoic­es or bills of sup­ply by such tax­able per­son, and on return of goods so pur­chased by such offi­cer, such tax­able per­son or any per­son in charge of the busi­ness premis­es shall refund the amount so paid towards the goods after can­celling any tax invoice or bill of sup­ply issued

68. (1) The Gov­ern­ment may require the per­son in charge of a con­veyance car­ry­ing any con­sign­ment of goods of val­ue exceed­ing such amount as may be spec­i­fied to car­ry with him such doc­u­ments and such devices as may be

• The details of doc­u­ments required to be car­ried under sub-sec­tion (1) shall be val­i­dat­ed in such man­ner as may be
• Where any con­veyance referred to in sub-sec­tion (1) is inter­cept­ed by the prop­er offi­cer at any place, he may require the per­son in charge of the said con­veyance to pro­duce the doc­u­ments pre­scribed under the said sub-sec­tion and devices for ver­i­fi­ca­tion, and the said per­son shall be liable to pro­duce the doc­u­ments and devices and also allow the inspec­tion of

69. (1) Where the Com­mis­sion­er has rea­sons to believe that a per­son has com­mit­ted any offence spec­i­fied in clause (a) or clause (b) or clause (c) or clause (d) of sub-sec­tion (1) of  sec­tion 132  which is  pun­ish­able under clause (i)  or  (ii)    of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inspec­tion of goods in

move­ment.

 

 

 

 

 

 

 

 

 

 

 

 

Pow­er to arrest.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pow­er to summon

per­sons to give evi­dence and pro­duce documents.

 

 

Access to busi­ness premises.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offi­cers to assist prop­er officers.

sub-sec­tion (1), or sub-sec­tion (2) of the said sec­tion, he may, by order, autho­rise any offi­cer of cen­tral tax to arrest such person.

• Where a per­son is arrest­ed under sub-sec­tion (1) for an offence spec­i­fied under sub- sec­tion (5) of sec­tion 132, the offi­cer autho­rised to arrest the per­son shall inform such per­son of the grounds of arrest and pro­duce him before a Mag­is­trate with­in twenty-four
• Sub­ject to the pro­vi­sions of the Code of Crim­i­nal Pro­ce­dure, 1973,–– 
  • 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;
  • 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

70. (1) The prop­er offi­cer under this Act shall have pow­er to sum­mon any per­son whose atten­dance he con­sid­ers nec­es­sary either to give evi­dence or to pro­duce a doc­u­ment or any oth­er thing in any inquiry in the same man­ner, as pro­vid­ed in the case of a civ­il court under the pro­vi­sions of the Code of Civ­il Procedure,

(2) Every such inquiry referred to in sub-sec­tion (1) shall be deemed to be a “judi­cial pro­ceed­ings” with­in the mean­ing of sec­tion 193 and sec­tion 228 of the Indi­an Penal Code.

71. (1) Any offi­cer under this Act, autho­rised by the prop­er offi­cer not below the rank of Joint Com­mis­sion­er, shall have access to any place of busi­ness of a reg­is­tered per­son to inspect books of account, doc­u­ments, com­put­ers, com­put­er pro­grams, com­put­er soft­ware whether installed in a com­put­er or oth­er­wise and such oth­er things as he may require and which may be avail­able at such place, for the pur­pos­es of car­ry­ing out any audit, scruti­ny, ver­i­fi­ca­tion and checks as may be nec­es­sary to safe­guard the inter­est of

• Every per­son in charge of place referred to in sub-sec­tion (1) shall, on demand, make avail­able to the offi­cer autho­rised under sub-sec­tion (1) or the audit par­ty deput­ed by the prop­er offi­cer or a cost accoun­tant or char­tered accoun­tant nom­i­nat­ed under sec­tion 66— 
  • such records as pre­pared or main­tained by the reg­is­tered per­son and declared to the prop­er offi­cer in such man­ner as may be prescribed;
  • tri­al bal­ance or its equivalent;
  • state­ments of annu­al finan­cial accounts, duly audit­ed, wher­ev­er required;
  • cost audit report, if any, under sec­tion 148 of the Com­pa­nies Act, 2013;
  • the income-tax audit report, if any, under sec­tion 44AB of the Income-tax Act, 1961; and
  • any oth­er rel­e­vant record,

for the scruti­ny by the offi­cer or audit par­ty or the char­tered accoun­tant or cost accoun­tant with­in a peri­od not exceed­ing fif­teen work­ing days from the day when such demand is made, or such fur­ther peri­od as may be allowed by the said offi­cer or the audit par­ty or the char­tered accoun­tant or cost accountant.

72. (1) All offi­cers of Police, Rail­ways, Cus­toms, and those offi­cers engaged in the col­lec­tion of land rev­enue, includ­ing vil­lage offi­cers, offi­cers of State tax and offi­cers of Union ter­ri­to­ry tax shall assist the prop­er offi­cers in the imple­men­ta­tion of this

• The Gov­ern­ment may, by noti­fi­ca­tion, empow­er and require any oth­er class of offi­cers to assist the prop­er offi­cers in the imple­men­ta­tion of this Act when called upon to do so by the

 

 

 

 

 

 

 

2  of 1974.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5  of 1908

 

 

45  of 1860.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18  of 2013.

 

 

43  of 1961.

 

 

 

CHAPTER XV DEMANDS AND RECOVERY

73. (1) Where it appears to the prop­er offi­cer that any tax has not been paid or short paid or erro­neous­ly refund­ed, or where input tax cred­it has been wrong­ly availed or utilised for any rea­son, oth­er than the rea­son of fraud or any wil­ful-mis­state­ment or sup­pres­sion of facts to evade tax, he shall serve notice on the per­son charge­able with tax which has not been so paid or which has been so short paid or to whom the refund has erro­neous­ly been made, or who has wrong­ly availed or utilised input tax cred­it, requir­ing him to show cause as to why he should not pay the amount spec­i­fied in the notice along with inter­est payable there­on under sec­tion 50 and a penal­ty levi­able under the pro­vi­sions of this Act or the rules made thereunder. 
    • The prop­er offi­cer shall issue the notice under sub-sec­tion (1) at least three months pri­or to the time lim­it spec­i­fied in sub-sec­tion (10) for issuance of
    • Where a notice has been issued for any peri­od under sub-sec­tion (1), the prop­er offi­cer may serve a state­ment, con­tain­ing the details of tax not paid or short paid or erro­neous­ly refund­ed or input tax cred­it wrong­ly availed or utilised for such peri­ods oth­er than those cov­ered under sub-sec­tion (1), on the per­son charge­able with
    • The ser­vice of such state­ment shall be deemed to be ser­vice of notice on such per­son under sub-sec­tion (1), sub­ject to the con­di­tion that the grounds relied upon for such tax peri­ods oth­er than those cov­ered under sub-sec­tion (1) are the same as are men­tioned in the earlier
    • The per­son charge­able with tax may, before ser­vice of notice under sub-sec­tion (1) or, as the case may be, the state­ment under sub-sec­tion (3), pay the amount of tax along with inter­est payable there­on under sec­tion 50 on the basis of his own ascer­tain­ment of such tax or the tax as ascer­tained by the prop­er offi­cer and inform the prop­er offi­cer in writ­ing of such payment.
    • The prop­er offi­cer, on receipt of such infor­ma­tion, shall not serve any notice under sub-sec­tion (1) or, as the case may be, the state­ment under sub-sec­tion (3), in respect of the tax so paid or any penal­ty payable under the pro­vi­sions of this Act or the rules made thereunder.
    • Where the prop­er offi­cer is of the opin­ion that the amount paid under sub-sec­tion (5) falls short of the amount actu­al­ly payable, he shall pro­ceed to issue the notice as pro­vid­ed for in sub-sec­tion (1) in respect of such amount which falls short of the amount actually
    • Where any per­son charge­able with tax under sub-sec­tion (1) or sub-sec­tion (3) pays the said tax along with inter­est payable under sec­tion 50 with­in thir­ty days of issue of show cause notice, no penal­ty shall be payable and all pro­ceed­ings in respect of the said notice shall be deemed to be
    • The prop­er offi­cer shall, after con­sid­er­ing the rep­re­sen­ta­tion, if any, made by per­son charge­able with tax, deter­mine the amount of tax, inter­est and a penal­ty equiv­a­lent to ten per cent. of tax or ten thou­sand rupees, whichev­er is high­er, due from such per­son and issue an
    • The prop­er offi­cer shall issue the order under sub-sec­tion (9) with­in three years from the due date for fur­nish­ing of annu­al return for the finan­cial year to which the tax not paid or short paid or input tax cred­it wrong­ly availed or utilised relates to or with­in three years from the date of erroneous
    • Notwith­stand­ing any­thing con­tained in sub-sec­tion (6) or sub-sec­tion (8), penal­ty under sub-sec­tion (9) shall be payable where any amount of self-assessed tax or any amount col­lect­ed as tax has not been paid with­in a peri­od of thir­ty days from the due date of pay­ment of such

 

 

 

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 wilful-

mis­state­ment or sup­pres­sion of facts.

 

 

 

Deter­mi­na­tion of  tax  not paid or short paid or

erro­neous­ly refund­ed or input tax

cred­it wrong­ly availed or utilised by rea­son  of fraud or any wilful-

mis­state­ment or sup­pres­sion of facts.

74. (1) Where it appears to the prop­er offi­cer that any tax has not been paid or short paid or erro­neous­ly refund­ed or where input tax cred­it has been wrong­ly availed or utilised by rea­son of fraud, or any wil­ful-mis­state­ment or sup­pres­sion of facts to evade tax, he shall serve notice on the per­son charge­able with tax which has not been so paid or which has been so short paid or to whom the refund has erro­neous­ly been made, or who has wrong­ly availed or utilised input tax cred­it, requir­ing him to show cause as to why he should not pay the amount spec­i­fied in the notice along with inter­est payable there­on under sec­tion 50 and a penal­ty equiv­a­lent to the tax spec­i­fied in the

• The prop­er offi­cer shall issue the notice under sub-sec­tion (1) at least six months pri­or to the time lim­it spec­i­fied in sub-sec­tion (10) for issuance of
• Where a notice has been issued for any peri­od under sub-sec­tion (1), the prop­er offi­cer may serve a state­ment, con­tain­ing the details of tax not paid or short paid or erro­neous­ly refund­ed or input tax cred­it wrong­ly availed or utilised for such peri­ods oth­er than those cov­ered under sub-sec­tion (1), on the per­son charge­able with
• The ser­vice of state­ment under sub-sec­tion (3) shall be deemed to be ser­vice of notice under sub-sec­tion (1) of sec­tion 73, sub­ject to the con­di­tion that the grounds relied upon in the said state­ment, except the ground of fraud, or any wil­ful-mis­state­ment or sup­pres­sion of facts to evade tax, for peri­ods oth­er than those cov­ered under sub-sec­tion (1) are the same as are men­tioned in the earlier
• The per­son charge­able with tax may, before ser­vice of notice under sub-sec­tion (1), pay the amount of tax along with inter­est payable under sec­tion 50 and a penal­ty equiv­a­lent to fif­teen per cent. of such tax on the basis of his own ascer­tain­ment of such tax or the tax as ascer­tained by the prop­er offi­cer and inform the prop­er offi­cer in writ­ing of such
• The prop­er offi­cer, on receipt of such infor­ma­tion, shall not serve any notice under sub-sec­tion (1), in respect of the tax so paid or any penal­ty payable under the pro­vi­sions of this Act or the rules made
• Where the prop­er offi­cer is of the opin­ion that the amount paid under sub-sec­tion (5) falls short of the amount actu­al­ly payable, he shall pro­ceed to issue the notice as pro­vid­ed for in sub-sec­tion (1) in respect of such amount which falls short of the amount actually
• Where any per­son charge­able with tax under sub-sec­tion (1) pays the said tax along with inter­est payable under sec­tion 50 and a penal­ty equiv­a­lent to twen­ty-five per of such tax with­in thir­ty days of issue of the notice, all pro­ceed­ings in respect of the said notice shall be deemed to be concluded.
• The prop­er offi­cer shall, after con­sid­er­ing the rep­re­sen­ta­tion, if any, made by the per­son charge­able with tax, deter­mine the amount of tax, inter­est and penal­ty due from such per­son and issue an
• The prop­er offi­cer shall issue the order under sub-sec­tion (9) with­in a peri­od of five years from the due date for fur­nish­ing of annu­al return for the finan­cial year to which the tax not paid or short paid or input tax cred­it wrong­ly availed or utilised relates to or with­in five years from the date of erroneous
• Where any per­son served with an order issued under sub-sec­tion (9) pays the tax along with inter­est payable there­on under sec­tion 50 and a penal­ty equiv­a­lent to fifty per cent. of such tax with­in thir­ty days of com­mu­ni­ca­tion of the order, all pro­ceed­ings in respect of the said notice shall be deemed to be

Expla­na­tion 1.—For the pur­pos­es of sec­tion 73 and this section,—

• the expres­sion “all pro­ceed­ings in respect of the said notice” shall not include pro­ceed­ings under sec­tion 132;

 

 

 

• where the notice under the same pro­ceed­ings is issued to the main per­son liable to pay tax and some oth­er per­sons, and such pro­ceed­ings against the main per­son have been con­clud­ed under sec­tion 73 or sec­tion 74, the pro­ceed­ings against all the per­sons liable to pay penal­ty under sec­tions 122, 125, 129 and 130 are deemed to be

Expla­na­tion 2.––For the pur­pos­es of this Act, the expres­sion “sup­pres­sion” shall mean non-dec­la­ra­tion of facts or infor­ma­tion which a tax­able per­son is required to declare in the return, state­ment, report or any oth­er doc­u­ment fur­nished under this Act or the rules made there­un­der, or fail­ure to fur­nish any infor­ma­tion on being asked for, in writ­ing, by the prop­er officer.

75. (1) Where the ser­vice of notice or issuance of order is stayed by an order of a court or Appel­late Tri­bunal, the peri­od of such stay shall be exclud­ed in com­put­ing the peri­od spec­i­fied in sub-sec­tions (2) and (10) of sec­tion 73 or sub-sec­tions (2) and (10) of sec­tion 74, as the case may

• Where any Appel­late Author­i­ty or Appel­late Tri­bunal or court con­cludes that the notice issued under sub-sec­tion (1) of sec­tion 74 is not sus­tain­able for the rea­son that the charges of fraud or any wil­ful-mis­state­ment or sup­pres­sion of facts to evade tax has not been estab­lished against the per­son to whom the notice was issued, the prop­er offi­cer shall deter­mine the tax payable by such per­son, deem­ing as if the notice were issued under sub-sec­tion (1) of section
• Where any order is required to be issued in pur­suance of the direc­tion of the Appel­late Author­i­ty or Appel­late Tri­bunal or a court, such order shall be issued with­in two years from the date of com­mu­ni­ca­tion of the said
• An oppor­tu­ni­ty of hear­ing shall be grant­ed where a request is received in writ­ing from the per­son charge­able with tax or penal­ty, or where any adverse deci­sion is con­tem­plat­ed against such
• The prop­er offi­cer shall, if suf­fi­cient cause is shown by the per­son charge­able with tax, grant time to the said per­son and adjourn the hear­ing for rea­sons to be record­ed in writing:

Pro­vid­ed that no such adjourn­ment shall be grant­ed for more than three times to a per­son dur­ing the proceedings.

• The prop­er offi­cer, in his order, shall set out the rel­e­vant facts and the basis of his decision.
• The amount of tax, inter­est and penal­ty demand­ed in the order shall not be in excess of the amount spec­i­fied in the notice and no demand shall be con­firmed on the grounds oth­er than the grounds spec­i­fied in the
• Where the Appel­late Author­i­ty or Appel­late Tri­bunal or court mod­i­fies the amount of tax deter­mined by the prop­er offi­cer, the amount of inter­est and penal­ty shall stand mod­i­fied accord­ing­ly, tak­ing into account the amount of tax so
• The inter­est on the tax short paid or not paid shall be payable whether or not spec­i­fied in the order deter­min­ing the tax
• The adju­di­ca­tion pro­ceed­ings shall be deemed to be con­clud­ed, if the order is not issued with­in three years as pro­vid­ed for in sub-sec­tion (10) of sec­tion 73 or with­in five years as pro­vid­ed for in sub-sec­tion (10) of section
• An issue on which the Appel­late Author­i­ty or the Appel­late Tri­bunal or the High Court has giv­en its deci­sion which is prej­u­di­cial to the inter­est of rev­enue in some oth­er pro­ceed­ings and an appeal to the Appel­late Tri­bunal or the High Court or the Supreme Court against such deci­sion of the Appel­late Author­i­ty or the Appel­late Tri­bunal or the High Court is pend­ing, the peri­od spent between the date of the deci­sion of the Appellate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gen­er­al

pro­vi­sions relat­ing to

deter­mi­na­tion of tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax col­lect­ed but not paid to Government.

Author­i­ty and that of the Appel­late Tri­bunal or the date of deci­sion of the Appel­late Tri­bunal and that of the High Court or the date of the deci­sion of the High Court and that of the Supreme Court shall be exclud­ed in com­put­ing the peri­od referred to in sub-sec­tion (10) of sec­tion 73 or sub-sec­tion (10) of sec­tion 74 where pro­ceed­ings are ini­ti­at­ed by way of issue of a show cause notice under the said sections.

• Notwith­stand­ing any­thing con­tained in sec­tion 73 or sec­tion 74, where any amount of self-assessed tax in accor­dance with a return fur­nished under sec­tion 39 remains unpaid, either whol­ly or part­ly, or any amount of inter­est payable on such tax remains unpaid, the same shall be recov­ered under the pro­vi­sions of section
• Where any penal­ty is imposed under sec­tion 73 or sec­tion 74, no penal­ty for the same act or omis­sion shall be imposed on the same per­son under any oth­er pro­vi­sion of this Act.

76. (1) Notwith­stand­ing any­thing to the con­trary con­tained in any order or direc­tion of any Appel­late Author­i­ty or Appel­late Tri­bunal or court or in any oth­er pro­vi­sions of this Act or the rules made there­un­der or any oth­er law for the time being in force, every per­son who has col­lect­ed from any oth­er per­son any amount as rep­re­sent­ing the tax under this Act, and has not paid the said amount to the Gov­ern­ment, shall forth­with pay the said amount to the Gov­ern­ment, irre­spec­tive of whether the sup­plies in respect of which such amount was col­lect­ed are tax­able or

• Where any amount is required to be paid to the Gov­ern­ment under sub-sec­tion (1), and which has not been so paid, the prop­er offi­cer may serve on the per­son liable to pay such amount a notice requir­ing him to show cause as to why the said amount as spec­i­fied in the notice, should not be paid by him to the Gov­ern­ment and why a penal­ty equiv­a­lent to the amount spec­i­fied in the notice should not be imposed on him under the pro­vi­sions of this
• The prop­er offi­cer shall, after con­sid­er­ing the rep­re­sen­ta­tion, if any, made by the per­son on whom the notice is served under sub-sec­tion (2), deter­mine the amount due from such per­son and there­upon such per­son shall pay the amount so
• The per­son referred to in sub-sec­tion (1) shall in addi­tion to pay­ing the amount referred to in sub-sec­tion (1) or sub-sec­tion (3) also be liable to pay inter­est there­on at the rate spec­i­fied under sec­tion 50 from the date such amount was col­lect­ed by him to the date such amount is paid by him to the
• An oppor­tu­ni­ty of hear­ing shall be grant­ed where a request is received in writ­ing from the per­son to whom the notice was issued to show
• The prop­er offi­cer shall issue an order with­in one year from the date of issue of the notice.
• Where the issuance of order is stayed by an order of the court or Appel­late Tri­bunal, the peri­od of such stay shall be exclud­ed in com­put­ing the peri­od of one
• The prop­er offi­cer, in his order, shall set out the rel­e­vant facts and the basis of his decision.
• The amount paid to the Gov­ern­ment under sub-sec­tion (1) or sub-sec­tion (3) shall be adjust­ed against the tax payable, if any, by the per­son in rela­tion to the sup­plies referred to in sub-sec­tion (1).
• Where any sur­plus is left after the adjust­ment under sub-sec­tion (9), the amount of such sur­plus shall either be cred­it­ed to the Fund or refund­ed to the per­son who has borne the inci­dence of such
• The per­son who has borne the inci­dence of the amount, may apply for the refund of the same in accor­dance with the pro­vi­sions of section

 

 

 

77. (1) A reg­is­tered per­son who has paid the Cen­tral tax and State tax or, as the case may be, the Cen­tral tax and the Union ter­ri­to­ry tax on a trans­ac­tion con­sid­ered by him to be an intra-State sup­ply, but which is sub­se­quent­ly held to be an inter-State sup­ply, shall be refund­ed the amount of tax­es so paid in such man­ner and sub­ject to such con­di­tions as may be

(2) A reg­is­tered per­son who has paid inte­grat­ed tax on a trans­ac­tion con­sid­ered by him to be an inter-State sup­ply, but which is sub­se­quent­ly held to be an intra-State sup­ply, shall not be required to pay any inter­est on the amount of cen­tral tax and State tax or, as the case may be, the Cen­tral tax and the Union ter­ri­to­ry tax payable.

78. Any amount payable by a tax­able per­son in pur­suance of an order passed under this Act shall be paid by such per­son with­in a peri­od of three months from the date of ser­vice of such order fail­ing which recov­ery pro­ceed­ings shall be initiated:

Pro­vid­ed that where the prop­er offi­cer con­sid­ers it expe­di­ent in the inter­est of rev­enue, he may, for rea­sons to be record­ed in writ­ing, require the said tax­able per­son to make such pay­ment with­in such peri­od less than a peri­od of three months as may be spec­i­fied by him.

79. (1) Where any amount payable by a per­son to the Gov­ern­ment under any of the pro­vi­sions of this Act or the rules made there­un­der is not paid, the prop­er offi­cer shall pro­ceed to recov­er the amount by one or more of the fol­low­ing modes, namely:––

• 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;
• 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;
• (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;
• every per­son to whom the notice is issued under sub-clause (i) shall be bound to com­ply with such notice, and in par­tic­u­lar, where any such notice is issued to a post office, bank­ing com­pa­ny or an insur­er, it shall not be nec­es­sary to pro­duce any pass book, deposit receipt, pol­i­cy or any oth­er doc­u­ment for the pur­pose of any entry, endorse­ment or the like being made before pay­ment is made, notwith­stand­ing any rule, prac­tice or require­ment to the contrary;
• in case the per­son to whom a notice under sub-clause (i) has been issued, fails to make the pay­ment in pur­suance there­of to the Gov­ern­ment, he shall be deemed to be a default­er in respect of the amount spec­i­fied in the notice and all the con­se­quences of this Act or the rules made there­un­der shall follow;
• the offi­cer issu­ing a notice under sub-clause (i) may, at any time, amend or revoke such notice or extend the time for mak­ing any pay­ment in pur­suance of the notice;
• any per­son mak­ing any pay­ment in com­pli­ance with a notice issued under sub-clause (i) shall be deemed to have made the pay­ment under the author­i­ty of the per­son in default and such pay­ment being cred­it­ed to the Gov­ern­ment shall be deemed

Tax wrong­ful­ly col­lect­ed and paid to

Cen­tral

Gov­ern­ment or State

Gov­ern­ment.

 

 

 

 

 

Ini­ti­a­tion of recov­ery proceedings.

 

 

 

 

 

 

Recov­ery of tax.

 

 

 

to con­sti­tute a good and suf­fi­cient dis­charge of the lia­bil­i­ty of such per­son to the per­son in default to the extent of the amount spec­i­fied in the receipt;

• any per­son dis­charg­ing any lia­bil­i­ty to the per­son in default after ser­vice on him of the notice issued under sub-clause (i) shall be per­son­al­ly liable to the Gov­ern­ment to the extent of the lia­bil­i­ty dis­charged or to the extent of the lia­bil­i­ty of the per­son in default for tax, inter­est and penal­ty, whichev­er is less;
• where a per­son on whom a notice is served under sub-clause (i) proves to the sat­is­fac­tion of the offi­cer issu­ing the notice that the mon­ey demand­ed or any part there­of was not due to the per­son in default or that he did not hold any mon­ey for or on account of the per­son in default, at the time the notice was served on him, nor is the mon­ey demand­ed or any part there­of, like­ly to become due to the said per­son or be held for or on account of such per­son, noth­ing con­tained in this sec­tion shall be deemed to require the per­son on whom the notice has been served to pay to the Gov­ern­ment any such mon­ey or part thereof;
• 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;
• 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;
• 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
• 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.
• Where any amount of tax, inter­est or penal­ty is payable by a per­son to the Gov­ern­ment under any of the pro­vi­sions of this Act or the rules made there­un­der and which remains unpaid, the prop­er offi­cer of State tax or Union ter­ri­to­ry tax, dur­ing the course of recov­ery of said tax arrears, may recov­er the amount from the said per­son as if it were an arrear of State tax or Union ter­ri­to­ry tax and cred­it the amount so recov­ered to the account of the
• Where the amount recov­ered under sub-sec­tion (3) is less than the amount due to the Cen­tral Gov­ern­ment and State Gov­ern­ment, the amount to be cred­it­ed to the account of the respec­tive Gov­ern­ments shall be in pro­por­tion to the amount due to each such

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2  of 1974.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31  of 2016.

80. On an appli­ca­tion filed by a tax­able per­son, the Com­mis­sion­er may, for rea­sons to be record­ed in writ­ing, extend the time for pay­ment or allow pay­ment of any amount due under this Act, oth­er than the amount due as per the lia­bil­i­ty self-assessed in any return, by such per­son in month­ly instal­ments not exceed­ing twen­ty four, sub­ject to pay­ment of inter­est under sec­tion 50 and sub­ject to such con­di­tions and lim­i­ta­tions as may be prescribed:

Pro­vid­ed that where there is default in pay­ment of any one instal­ment on its due date, the whole out­stand­ing bal­ance payable on such date shall become due and payable forth­with and shall, with­out any fur­ther notice being served on the per­son, be liable for recovery.

81. Where a per­son, after any amount has become due from him, cre­ates a charge on or parts with the prop­er­ty belong­ing to him or in his pos­ses­sion by way of sale, mort­gage, exchange, or any oth­er mode of trans­fer what­so­ev­er of any of his prop­er­ties in favour of any oth­er per­son with the inten­tion of defraud­ing the Gov­ern­ment rev­enue, such charge or trans­fer shall be void as against any claim in respect of any tax or any oth­er sum payable by the said person:

Pro­vid­ed that, such charge or trans­fer shall not be void if it is made for ade­quate con­sid­er­a­tion, in good faith and with­out notice of the pen­den­cy of such pro­ceed­ings under this Act or with­out notice of such tax or oth­er sum payable by the said per­son, or with the pre­vi­ous per­mis­sion of the prop­er officer.

82. Notwith­stand­ing any­thing to the con­trary con­tained in any law for the time being in force, save as oth­er­wise pro­vid­ed in the Insol­ven­cy and Bank­rupt­cy Code, 2016, any amount payable by a tax­able per­son or any oth­er per­son on account of tax, inter­est or penal­ty which he is liable to pay to the Gov­ern­ment shall be a first charge on the prop­er­ty of such tax­able per­son or such
83. (1) Where dur­ing the pen­den­cy of any pro­ceed­ings under sec­tion 62 or sec­tion 63 or sec­tion 64 or sec­tion 67 or sec­tion 73 or sec­tion 74, the Com­mis­sion­er is of the opin­ion that for the pur­pose of pro­tect­ing the inter­est of the Gov­ern­ment rev­enue, it is nec­es­sary so to do, he may, by order in writ­ing attach pro­vi­sion­al­ly any prop­er­ty, includ­ing bank account, belong­ing to the tax­able per­son in such man­ner as may be

(2) Every such pro­vi­sion­al attach­ment shall cease to have effect after the expiry of a peri­od of one year from the date of the order made under sub-sec­tion (1).

84. Where any notice of demand in respect of any tax, penal­ty, inter­est or any oth­er amount payable under this Act, (here­after in this sec­tion referred to as “Gov­ern­ment dues”), is served upon any tax­able per­son or any oth­er per­son and any appeal or revi­sion appli­ca­tion is filed or any oth­er pro­ceed­ings is ini­ti­at­ed in respect of such Gov­ern­ment dues, then––

• 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;
• where such Gov­ern­ment dues are reduced in such appeal, revi­sion or in oth­er proceedings–– 
  • it shall not be nec­es­sary for the Com­mis­sion­er to serve upon the tax­able per­son a fresh notice of demand;
  • the Com­mis­sion­er shall give inti­ma­tion of such reduc­tion to him and to the appro­pri­ate author­i­ty with whom recov­ery pro­ceed­ings is pending;
  • any recov­ery pro­ceed­ings ini­ti­at­ed on the basis of the demand served upon him pri­or to the dis­pos­al of such appeal, revi­sion or oth­er pro­ceed­ings may

Pay­ment of tax and oth­er amount in

instal­ments.

 

 

 

 

 

 

 

 

Trans­fer of prop­er­ty  to be void in cer­tain cases.

 

 

 

 

 

 

 

 

 

 

Tax to  be first charge on property.

 

 

 

 

Pro­vi­sion­al

attach­ment to pro­tect rev­enue in cer­tain cases.

 

 

 

 

 

Con­tin­u­a­tion and val­i­da­tion of certain

recov­ery proceedings.

 

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty in case of trans­fer of business.

 

 

 

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty of agent and principal.

 

Lia­bil­i­ty in case of amal­ga­ma­tion or merg­er of companies.

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty in

case            of

com­pa­ny     in liquidation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty of direc­tors of private

com­pa­ny.

be con­tin­ued in rela­tion to the amount so reduced from the stage at which such pro­ceed­ings stood imme­di­ate­ly before such disposal.

CHAPTER XVI LIABILITY TO PAY  IN CERTAIN CASES

85. (1) Where a tax­able per­son, liable to pay tax under this Act, trans­fers his busi­ness in whole or in part, by sale, gift, lease, leave and license, hire or in any oth­er man­ner what­so­ev­er, the tax­able per­son and the per­son to whom the busi­ness is so trans­ferred shall, joint­ly and sev­er­al­ly, be liable whol­ly or to the extent of such trans­fer, to pay the tax, inter­est or any penal­ty due from the tax­able per­son upto the time of such trans­fer, whether such tax, inter­est or penal­ty has been deter­mined before such trans­fer, but has remained unpaid or is determined

(2) Where the trans­fer­ee of a busi­ness referred to in sub-sec­tion (1) car­ries on such busi­ness either in his own name or in some oth­er name, he shall be liable to pay tax on the sup­ply of goods or ser­vices or both effect­ed by him with effect from the date of such trans­fer and shall, if he is a reg­is­tered per­son under this Act, apply with­in the pre­scribed time for amend­ment of his cer­tifi­cate of registration.

86. Where an agent sup­plies or receives any tax­able goods on behalf of his prin­ci­pal, such agent and his prin­ci­pal shall, joint­ly and sev­er­al­ly, be liable to pay the tax payable on such goods under this
87. (1) When two or more com­pa­nies are amal­ga­mat­ed or merged in pur­suance of an order of court or of Tri­bunal or oth­er­wise and the order is to take effect from a date ear­li­er to the date of the order and any two or more of such com­pa­nies have sup­plied or received any goods or ser­vices or both to or from each oth­er dur­ing the peri­od com­menc­ing on the date from which the order takes effect till the date of the order, then such trans­ac­tions of sup­ply and receipt shall be includ­ed in the turnover of sup­ply or receipt of the respec­tive com­pa­nies and they shall be liable to pay tax

(2) Notwith­stand­ing any­thing con­tained in the said order, for the pur­pos­es of this Act, the said two or more com­pa­nies shall be treat­ed as dis­tinct com­pa­nies for the peri­od up to the date of the said order and the reg­is­tra­tion cer­tifi­cates of the said com­pa­nies shall be can­celled with effect from the date of the said order.

88. (1) When any com­pa­ny is being wound up whether under the orders of a court or Tri­bunal or oth­er­wise, every per­son appoint­ed as receiv­er of any assets of a com­pa­ny (here­after in this sec­tion referred to as the “liq­uida­tor”), shall, with­in thir­ty days after his appoint­ment, give inti­ma­tion of his appoint­ment to the

• The Com­mis­sion­er shall, after mak­ing such inquiry or call­ing for such infor­ma­tion as he may deem fit, noti­fy the liq­uida­tor with­in three months from the date on which he receives inti­ma­tion of the appoint­ment of the liq­uida­tor, the amount which in the opin­ion of the Com­mis­sion­er would be suf­fi­cient to pro­vide for any tax, inter­est or penal­ty which is then, or is like­ly there­after to become, payable by the
• When any pri­vate com­pa­ny is wound up and any tax, inter­est or penal­ty deter­mined under this Act on the com­pa­ny for any peri­od, whether before or in the course of or after its liq­ui­da­tion, can­not be recov­ered, then every per­son who was a direc­tor of such com­pa­ny at any time dur­ing the peri­od for which the tax was due shall, joint­ly and sev­er­al­ly, be liable for the pay­ment of such tax, inter­est or penal­ty, unless he proves to the sat­is­fac­tion of the Com­mis­sion­er that such non-recov­ery can­not be attrib­uted to any gross neglect, mis­fea­sance or breach of duty on his part in rela­tion to the affairs of the

89. (1) Notwith­stand­ing any­thing con­tained in the Com­pa­nies Act, 2013, where any tax, inter­est or penal­ty due from a pri­vate com­pa­ny in respect of any sup­ply of goods or ser­vices or both for any peri­od can­not be recov­ered, then, every per­son who was a direc­tor of the pri­vate com­pa­ny dur­ing such peri­od shall, joint­ly and sev­er­al­ly, be liable for the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18   of  2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31of 2016.

pay­ment of such tax, inter­est or penal­ty unless he proves that the non-recov­ery can­not be attrib­uted to any gross neglect, mis­fea­sance or breach of duty on his part in rela­tion to the affairs of the company.

(2) Where a pri­vate com­pa­ny is con­vert­ed into a pub­lic com­pa­ny and the tax, inter­est or penal­ty in respect of any sup­ply of goods or ser­vices or both for any peri­od dur­ing which such com­pa­ny was a pri­vate com­pa­ny can­not be recov­ered before such con­ver­sion, then, noth­ing con­tained in sub-sec­tion (1) shall apply to any per­son who was a direc­tor of such pri­vate com­pa­ny in rela­tion to any tax, inter­est or penal­ty in respect of such sup­ply of goods or ser­vices or both of such pri­vate company:

Pro­vid­ed that noth­ing con­tained in this sub-sec­tion shall apply to any per­son­al penal­ty imposed on such director.

90. Notwith­stand­ing any con­tract to the con­trary and any oth­er law for the time being in force, where any firm is liable to pay any tax, inter­est or penal­ty under this Act, the firm and each of the part­ners of the firm shall, joint­ly and sev­er­al­ly, be liable for such payment:

Pro­vid­ed that where any part­ner retires from the firm, he or the firm, shall inti­mate the date of retire­ment of the said part­ner to the Com­mis­sion­er by a notice in that behalf in writ­ing and such part­ner shall be liable to pay tax, inter­est or penal­ty due 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. Where the busi­ness in respect of which any tax, inter­est or penal­ty is payable under this Act is car­ried on by any guardian, trustee or agent of a minor or oth­er inca­pac­i­tat­ed per­son on behalf of and for the ben­e­fit of such minor or oth­er inca­pac­i­tat­ed per­son, the tax, inter­est or penal­ty shall be levied upon and recov­er­able from such guardian, trustee or agent in like man­ner and to the same extent as it would be deter­mined and recov­er­able from any such minor or oth­er inca­pac­i­tat­ed per­son, as if he were a major or capac­i­tat­ed per­son and as if he were con­duct­ing the busi­ness him­self, and all the pro­vi­sions of this Act or the rules made there­un­der shall apply
92. Where the estate or any por­tion of the estate of a tax­able per­son own­ing a busi­ness in respect of which any tax, inter­est or penal­ty is payable under this Act is under the con­trol of the Court of Wards, the Admin­is­tra­tor Gen­er­al, the Offi­cial Trustee or any receiv­er or man­ag­er (includ­ing any per­son, what­ev­er be his des­ig­na­tion, who in fact man­ages the busi­ness) appoint­ed by or under any order of a court, the tax, inter­est or penal­ty shall be levied upon and be recov­er­able from such Court of Wards, Admin­is­tra­tor Gen­er­al, Offi­cial Trustee, receiv­er or man­ag­er in like man­ner and to the same extent as it would be deter­mined and be recov­er­able from the tax­able per­son as if he were con­duct­ing the busi­ness him­self, and all the pro­vi­sions of this Act or the rules made there­un­der shall apply
93. (1) Save as oth­er­wise pro­vid­ed in the Insol­ven­cy and Bank­rupt­cy Code, 2016, where a per­son, liable to pay tax, inter­est or penal­ty under this Act, dies, then––

• 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
• 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty of part­ners of firm to pay tax.

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty of guardians, trustees, etc.

 

 

 

 

 

 

 

 

Lia­bil­i­ty of Court of Wards, etc.

 

 

 

 

 

 

 

 

 

Spe­cial

pro­vi­sions regard­ing lia­bil­i­ty to pay tax,

inter­est or penal­ty in

cer­tain cases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty in oth­er cases.

• 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
• Save as oth­er­wise pro­vid­ed in the Insol­ven­cy and Bank­rupt­cy Code, 2016, where a tax­able per­son, liable to pay tax, inter­est or penal­ty under this Act, is a firm, and the firm is dis­solved, then, every per­son who was a part­ner shall, joint­ly and sev­er­al­ly, be liable to pay the tax, inter­est or penal­ty due from the firm under this Act up to the time of dis­so­lu­tion whether such tax, inter­est or penal­ty has been deter­mined before the dis­so­lu­tion, but has remained unpaid or is deter­mined after
• 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 the guardian of a ward on whose behalf the busi­ness is car­ried on by the guardian; or
  • 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.

94. (1) Where a tax­able per­son is a firm or an asso­ci­a­tion of per­sons or a Hin­du Undi­vid­ed Fam­i­ly and such firm, asso­ci­a­tion or fam­i­ly has dis­con­tin­ued business––

• 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
• 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.
• 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
• The pro­vi­sions of sub-sec­tion (1) shall, so far as may be, apply where the tax­able per­son, being a firm or asso­ci­a­tion of per­sons is dis­solved or where the tax­able per­son, being a Hin­du Undi­vid­ed Fam­i­ly, has effect­ed par­ti­tion with respect to the busi­ness car­ried on by it and accord­ing­ly ref­er­ences in that sub-sec­tion to dis­con­tin­u­ance shall be con­strued as ref­er­ence to dis­so­lu­tion or to

31  of 2016.

 

 

 

 

 

 

 

 

 

 

31  of 2016.

 

 

 

 

 

 

 

31  of 2016.

 

 

 

 

 

 

 

6  of 2009.

Expla­na­tion.––For the pur­pos­es of this Chapter,––

• a “Lim­it­ed Lia­bil­i­ty Part­ner­ship” formed and reg­is­tered under the pro­vi­sions of the Lim­it­ed Lia­bil­i­ty Part­ner­ship Act, 2008 shall also be con­sid­ered as a firm;
• “court” means the Dis­trict Court, High Court or Supreme CHAPTER XVII

ADVANCE  RULING

95. In this Chap­ter, unless the con­text oth­er­wise requires,––

• “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;
• “Appel­late Author­i­ty” means the Appel­late Author­i­ty for Advance Rul­ing referred to in sec­tion 99;
• “appli­cant” means any per­son reg­is­tered or desirous of obtain­ing reg­is­tra­tion under this Act;
• “appli­ca­tion” means an appli­ca­tion made to the Author­i­ty under sub-sec­tion (1) of sec­tion 97;
• “Author­i­ty” means the Author­i­ty for Advance Rul­ing referred to in section

96. Sub­ject to the pro­vi­sions of this Chap­ter, for the pur­pos­es of this Act, the Author­i­ty for advance rul­ing con­sti­tut­ed under the pro­vi­sions of a State Goods and Ser­vices Tax Act or Union Ter­ri­to­ry Goods and Ser­vices Tax Act shall be deemed to be the Author­i­ty for advance rul­ing in respect of that State or Union
97. (1) An appli­cant desirous of obtain­ing an advance rul­ing under this Chap­ter may make an appli­ca­tion in such form and man­ner and accom­pa­nied by such fee as may be pre­scribed, stat­ing the ques­tion on which the advance rul­ing is

• The ques­tion on which the advance rul­ing is sought under this Act, shall be in respect of,–– 
  • clas­si­fi­ca­tion of any goods or ser­vices or both;
  • applic­a­bil­i­ty of a noti­fi­ca­tion issued under the pro­vi­sions of this Act;
  • deter­mi­na­tion of time and val­ue of sup­ply of goods or ser­vices or both;
  • admis­si­bil­i­ty of input tax cred­it of tax paid or deemed to have been paid;
  • deter­mi­na­tion of the lia­bil­i­ty to pay tax on any goods or ser­vices or both;
  • whether appli­cant is required to be registered;
  • whether any par­tic­u­lar thing done by the appli­cant with respect to any goods or ser­vices or both amounts to or results in a sup­ply of goods or ser­vices or both, with­in the mean­ing of that

98. (1) On receipt of an appli­ca­tion, the Author­i­ty shall cause a copy there­of to be for­ward­ed to the con­cerned offi­cer and, if nec­es­sary, call upon him to fur­nish the rel­e­vant records:

Pro­vid­ed that where any records have been called for by the Author­i­ty in any case, such records shall, as soon as pos­si­ble, be returned to the said con­cerned  officer.

• The Author­i­ty may, after exam­in­ing the appli­ca­tion and the records called for and after hear­ing the appli­cant or his autho­rised rep­re­sen­ta­tive and the con­cerned offi­cer or his autho­rised rep­re­sen­ta­tive, by order, either admit or reject the application:

 

 

 

 

 

 

 

 

 

 

Def­i­n­i­tions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Author­i­ty for advance ruling.

 

 

 

Appli­ca­tion for advance ruling.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro­ce­dure on receipt of

appli­ca­tion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appel­late

Author­i­ty for Advance Ruling.

 

Appeal to Appel­late Authority.

 

 

 

 

 

 

 

 

 

 

 

 

 

Orders of Appel­late Authority.

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.

• A copy of every order made under sub-sec­tion (2) shall be sent to the appli­cant and to the concerned
• Where an appli­ca­tion is admit­ted under sub-sec­tion (2), the Author­i­ty shall, after exam­in­ing such fur­ther mate­r­i­al as may be placed before it by the appli­cant or obtained by the Author­i­ty and after pro­vid­ing an oppor­tu­ni­ty of being heard to the appli­cant or his autho­rised rep­re­sen­ta­tive as well as to the con­cerned offi­cer or his autho­rised rep­re­sen­ta­tive, pro­nounce its advance rul­ing on the ques­tion spec­i­fied in the
• Where the mem­bers of the Author­i­ty dif­fer on any ques­tion on which the advance rul­ing is sought, they shall state the point or points on which they dif­fer and make a ref­er­ence to the Appel­late Author­i­ty for hear­ing and deci­sion on such
• The Author­i­ty shall pro­nounce its advance rul­ing in writ­ing with­in nine­ty days from the date of receipt of
• A copy of the advance rul­ing pro­nounced by the Author­i­ty duly signed by the mem­bers and cer­ti­fied in such man­ner as may be pre­scribed shall be sent to the appli­cant, the con­cerned offi­cer and the juris­dic­tion­al offi­cer after such

99. Sub­ject to the pro­vi­sions of this Chap­ter, for the pur­pos­es of this Act, the Appel­late Author­i­ty for Advance Rul­ing con­sti­tut­ed under the pro­vi­sions of a State Goods and Ser­vices Tax Act or a Union Ter­ri­to­ry Goods and Ser­vices Tax Act shall be deemed to be the Appel­late Author­i­ty in respect of that State or Union
100. (1) The con­cerned offi­cer, the juris­dic­tion­al offi­cer or an appli­cant aggriev­ed by any advance rul­ing pro­nounced under sub-sec­tion (4) of sec­tion 98, may appeal to the Appellate

• Every appeal under this sec­tion shall be filed with­in a peri­od of thir­ty days from the date on which the rul­ing sought to be appealed against is com­mu­ni­cat­ed to the con­cerned offi­cer, the juris­dic­tion­al offi­cer and the applicant:

Pro­vid­ed that the Appel­late Author­i­ty may, if it is sat­is­fied that the appel­lant was pre­vent­ed by a suf­fi­cient cause from pre­sent­ing the appeal with­in the said peri­od of thir­ty days, allow it to be pre­sent­ed with­in a fur­ther peri­od not exceed­ing thir­ty days.

• Every appeal under this sec­tion shall be in such form, accom­pa­nied by such fee and ver­i­fied in such man­ner as may be

101. (1) The Appel­late Author­i­ty may, after giv­ing the par­ties to the appeal or ref­er­ence an oppor­tu­ni­ty of being heard, pass such order as it thinks fit, con­firm­ing or mod­i­fy­ing the rul­ing appealed against or referred

• The order referred to in sub-sec­tion (1) shall be passed with­in a peri­od of nine­ty days from the date of fil­ing of the appeal under sec­tion 100 or a ref­er­ence under sub-sec­tion (5) of section
• Where the mem­bers of the Appel­late Author­i­ty dif­fer on any point or points referred to in appeal or ref­er­ence, it shall be deemed that no advance rul­ing can be issued in respect of the ques­tion under the appeal or
• A copy of the advance rul­ing pro­nounced by the Appel­late Author­i­ty duly signed by the Mem­bers and cer­ti­fied in such man­ner as may be pre­scribed shall be sent to the

 

 

 

appli­cant, the con­cerned offi­cer, the juris­dic­tion­al offi­cer and to the Author­i­ty after such pronouncement.

102. The Author­i­ty or the Appel­late Author­i­ty may amend any order passed by it under sec­tion 98 or sec­tion 101, so as to rec­ti­fy any error appar­ent on the face of the record, if such error is noticed by the Author­i­ty or the Appel­late Author­i­ty on its own accord, or is brought to its notice by the con­cerned offi­cer, the juris­dic­tion­al offi­cer, the appli­cant or the appel­lant with­in a peri­od of six months from the date of the order:

Pro­vid­ed that no rec­ti­fi­ca­tion which has the effect of enhanc­ing the tax lia­bil­i­ty or reduc­ing the amount of admis­si­ble input tax cred­it shall be made unless the appli­cant or the appel­lant has been giv­en an oppor­tu­ni­ty of being heard.

103. (1) The advance rul­ing pro­nounced by the Author­i­ty or the Appel­late Author­i­ty under this Chap­ter shall be bind­ing only—

• on the appli­cant who had sought it in respect of any mat­ter referred to in sub-sec­tion (2) of sec­tion 97 for advance ruling;
• on the con­cerned offi­cer or the juris­dic­tion­al offi­cer in respect of the

 

 

 

Rec­ti­fi­ca­tion of advance ruling.

 

 

 

 

 

 

 

 

 

Applic­a­bil­i­ty of advance ruling.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5  of 1908.

 

 

 

 

2  of 1974.

 

45  of 1860.

.

(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. (1) Where the Author­i­ty or the Appel­late Author­i­ty finds that advance rul­ing pro­nounced by it under sub-sec­tion (4) of sec­tion 98 or under sub-sec­tion (1) of sec­tion 101 has been obtained by the appli­cant or the appel­lant by fraud or sup­pres­sion of mate­r­i­al facts or mis­rep­re­sen­ta­tion of facts, it may, by order, declare such rul­ing to be void ab-ini­tio and there­upon all the pro­vi­sions of this Act or the rules made there­un­der shall apply to the appli­cant or the appel­lant as if such advance rul­ing had nev­er been made:

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. (1) The Author­i­ty or the Appel­late Author­i­ty shall, for the pur­pose of exer­cis­ing its pow­ers regarding—

• dis­cov­ery and inspection;
• enforc­ing the atten­dance of any per­son and exam­in­ing him on oath;
• issu­ing com­mis­sions and com­pelling pro­duc­tion of books of account and oth­er records,

have all the pow­ers of a civ­il court under the Code of Civ­il Pro­ce­dure, 1908.

(2) The Author­i­ty or the Appel­late Author­i­ty shall be deemed to be a civ­il court for the pur­pos­es of sec­tion 195, but not for the pur­pos­es of Chap­ter XXVI of the Code of Crim­i­nal Pro­ce­dure, 1973, and every pro­ceed­ing before the Author­i­ty or the Appel­late Author­i­ty shall be deemed to be a judi­cial pro­ceed­ings with­in the mean­ing of sec­tions 193 and 228, and for the pur­pose of sec­tion 196 of the Indi­an Penal Code.

 

106. The Author­i­ty or the Appel­late Author­i­ty shall, sub­ject to the pro­vi­sions of this Chap­ter, have pow­er to reg­u­late its own

 

 

 

 

Advance rul­ing to be void in

cer­tain circumstances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pow­ers of Authority

and Appel­late Authority.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro­ce­dure of Author­i­ty and Appellate

Author­i­ty.

 

 

 

 

 

 

 

Appeals to Appel­late Authority.

CHAPTER XVIII APPEALS  AND  REVISION

107. (1) Any per­son aggriev­ed by any deci­sion or order passed under this Act or the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act by an adju­di­cat­ing author­i­ty may appeal to such Appel­late Author­i­ty as may be pre­scribed with­in three months from the date on which the said deci­sion or order is com­mu­ni­cat­ed to such person.

• The Com­mis­sion­er may, on his own motion, or upon request from the Com­mis­sion­er of State tax or the Com­mis­sion­er of Union ter­ri­to­ry tax, call for and exam­ine the record of any pro­ceed­ings in which an adju­di­cat­ing author­i­ty has passed any deci­sion or order under this Act or the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act, for the pur­pose of sat­is­fy­ing him­self as to the legal­i­ty or pro­pri­ety of the said deci­sion or order and may, by order, direct any offi­cer sub­or­di­nate to him to apply to the Appel­late Author­i­ty with­in six months from the date of com­mu­ni­ca­tion of the said deci­sion or order for the deter­mi­na­tion of such points aris­ing out of the said deci­sion or order as may be spec­i­fied by the Com­mis­sion­er in his
• Where, in pur­suance of an order under sub-sec­tion (2), the autho­rised offi­cer makes an appli­ca­tion to the Appel­late Author­i­ty, such appli­ca­tion shall be dealt with by the Appel­late Author­i­ty as if it were an appeal made against the deci­sion or order of the adju­di­cat­ing author­i­ty and such autho­rised offi­cer were an appel­lant and the pro­vi­sions of this Act relat­ing to appeals shall apply to such
• The Appel­late Author­i­ty may, if he is sat­is­fied that the appel­lant was pre­vent­ed by suf­fi­cient cause from pre­sent­ing the appeal with­in the afore­said peri­od of three months or six months, as the case may be, allow it to be pre­sent­ed with­in a fur­ther peri­od of one
• Every appeal under this sec­tion shall be in such form and shall be ver­i­fied in such man­ner as may be
• No appeal shall be filed under sub-sec­tion (1), unless the appel­lant has paid— 
  • 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
  • a sum equal to ten per of the remain­ing amount of tax in dis­pute aris­ing from the said order, in rela­tion to which the appeal has been filed.
• Where the appel­lant has paid the amount under sub-sec­tion (6), the recov­ery pro­ceed­ings for the bal­ance amount shall be deemed to be
• The Appel­late Author­i­ty shall give an oppor­tu­ni­ty to the appel­lant of being
• The Appel­late Author­i­ty may, if suf­fi­cient cause is shown at any stage of hear­ing of an appeal, grant time to the par­ties or any of them and adjourn the hear­ing of the appeal for rea­sons to be record­ed in writing:

Pro­vid­ed that no such adjourn­ment shall be grant­ed more than three times to a par­ty dur­ing hear­ing of the appeal.

• The Appel­late Author­i­ty may, at the time of hear­ing of an appeal, allow an appel­lant to add any ground of appeal not spec­i­fied in the grounds of appeal, if it is sat­is­fied that the omis­sion of that ground from the grounds of appeal was not wil­ful or
• The Appel­late Author­i­ty shall, after mak­ing such fur­ther inquiry as may be nec­es­sary, pass such order, as it thinks just and prop­er, con­firm­ing, mod­i­fy­ing or annulling the deci­sion or order appealed against but shall not refer the case back to the adju­di­cat­ing author­i­ty that passed the said deci­sion or order:

 

 

 

Pro­vid­ed that an order enhanc­ing any fee or penal­ty or fine in lieu of con­fis­ca­tion or con­fis­cat­ing goods of greater val­ue or reduc­ing the amount of refund or input tax cred­it shall not be passed unless the appel­lant has been giv­en a rea­son­able oppor­tu­ni­ty of show­ing cause against the pro­posed order:

Pro­vid­ed fur­ther that where the Appel­late Author­i­ty is of the opin­ion that any tax has not been paid or short-paid or erro­neous­ly refund­ed, or where input tax cred­it has been wrong­ly availed or utilised, no order requir­ing the appel­lant to pay such tax or input tax cred­it shall be passed unless the appel­lant is giv­en notice to show cause against the pro­posed order and the order is passed with­in the time lim­it spec­i­fied under sec­tion 73 or sec­tion 74.

• 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.
• The Appel­late Author­i­ty shall, where it is pos­si­ble to do so, hear and decide every appeal with­in a peri­od of one year from the date on which it is filed:

Pro­vid­ed that where the issuance of order is stayed by an order of a court or Tri­bunal, the peri­od of such stay shall be exclud­ed in com­put­ing the peri­od of one year.

• On dis­pos­al of the appeal, the Appel­late Author­i­ty shall com­mu­ni­cate the order passed by it to the appel­lant, respon­dent and to the adjudicating
• A copy of the order passed by the Appel­late Author­i­ty shall also be sent to the juris­dic­tion­al Com­mis­sion­er or the author­i­ty des­ig­nat­ed by him in this behalf and the juris­dic­tion­al Com­mis­sion­er of State tax or Com­mis­sion­er of Union Ter­ri­to­ry Tax or an author­i­ty des­ig­nat­ed by him in this
• Every order passed under this sec­tion shall, sub­ject to the pro­vi­sions of sec­tion 108 or sec­tion 113 or sec­tion 117 or sec­tion 118 be final and bind­ing on the

108. (1) Sub­ject to the pro­vi­sions of sec­tion 121 and any rules made there­un­der, the Revi­sion­al Author­i­ty may, on his own motion, or upon infor­ma­tion received by him or on request from the Com­mis­sion­er of State tax, or the Com­mis­sion­er of Union ter­ri­to­ry tax, call for and exam­ine the record of any pro­ceed­ings, and if he con­sid­ers that any deci­sion or order passed under this Act or under the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act by any offi­cer sub­or­di­nate to him is erro­neous in so far as it is prej­u­di­cial to the inter­est of rev­enue and is ille­gal or improp­er or has not tak­en into account cer­tain mate­r­i­al facts, whether avail­able at the time of issuance of the said order or not or in con­se­quence of an obser­va­tion by the Comp­trol­ler and Audi­tor Gen­er­al of India, he may, if nec­es­sary, stay the oper­a­tion of such deci­sion or order for such peri­od as he deems fit and after giv­ing the per­son con­cerned an oppor­tu­ni­ty of being heard and after mak­ing such fur­ther inquiry as may be nec­es­sary, pass such order, as he thinks just and prop­er, includ­ing enhanc­ing or mod­i­fy­ing or annulling the said deci­sion or

• The Revi­sion­al Author­i­ty shall not exer­cise any pow­er under sub-sec­tion (1), if—
  • the order has been sub­ject to an appeal under sec­tion 107 or sec­tion 112 or sec­tion 117 or sec­tion 118; or
  • 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
  • the order has already been tak­en for revi­sion under this sec­tion at an ear­li­er stage; or
  • the order has been passed in exer­cise of the pow­ers under sub-sec­tion (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pow­ers of Revi­sion­al Authority.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Con­sti­tu­tion of Appel­late Tri­bunal and Benches

there­of.

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.

• 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
• If the said deci­sion or order involves an issue on which the Appel­late Tri­bunal or the High Court has giv­en its deci­sion in some oth­er pro­ceed­ings and an appeal to the High Court or the Supreme Court against such deci­sion of the Appel­late Tri­bunal or the High Court is pend­ing, the peri­od spent between the date of the deci­sion of the Appel­late Tri­bunal and the date of the deci­sion of the High Court or the date of the deci­sion of the High Court and the date of the deci­sion of the Supreme Court shall be exclud­ed in com­put­ing the peri­od of lim­i­ta­tion referred to in clause (b) of sub-sec­tion (2) where pro­ceed­ings for revi­sion have been ini­ti­at­ed by way of issue of a notice under this
• Where the issuance of an order under sub-sec­tion (1) is stayed by the order of a court or Appel­late Tri­bunal, the peri­od of such stay shall be exclud­ed in com­put­ing the peri­od of lim­i­ta­tion referred to in clause (b) of sub-sec­tion (2).
• For the pur­pos­es of this sec­tion, the term,––
• “record” shall include all records relat­ing to any pro­ceed­ings under this Act avail­able at the time of exam­i­na­tion by the Revi­sion­al Authority;
• “deci­sion” shall include inti­ma­tion giv­en by any offi­cer low­er in rank than the Revisional

109. (1) The Gov­ern­ment shall, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, con­sti­tute with effect from such date as may be spec­i­fied there­in, an Appel­late Tri­bunal known as the Goods and Ser­vices Tax Appel­late Tri­bunal for hear­ing appeals against the orders passed by the Appel­late Author­i­ty or the Revisional

• The pow­ers of the Appel­late Tri­bunal shall be exer­cis­able by the Nation­al Bench and Bench­es there­of (here­inafter in this Chap­ter referred to as “Region­al Bench­es”), State Bench and Bench­es there­of (here­after in this Chap­ter referred to as “Area Benches”).
• The Nation­al Bench of the Appel­late Tri­bunal shall be sit­u­at­ed at New Del­hi which shall be presided over by the Pres­i­dent and shall con­sist of one Tech­ni­cal Mem­ber (Cen­tre) and one Tech­ni­cal Mem­ber (State).
• The Gov­ern­ment shall, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, con­sti­tute such num­ber of Region­al Bench­es as may be required and such Region­al Bench­es shall con­sist of a Judi­cial Mem­ber, one Tech­ni­cal Mem­ber (Cen­tre) and one Tech­ni­cal Mem­ber (State).
• The Nation­al Bench or Region­al Bench­es of the Appel­late Tri­bunal shall have juris­dic­tion to hear appeals against the orders passed by the Appel­late Author­i­ty or the Revi­sion­al Author­i­ty in the cas­es where one of the issues involved relates to the place of supply.
• The Gov­ern­ment shall, by noti­fi­ca­tion, spec­i­fy for each State or Union ter­ri­to­ry, a Bench of the Appel­late Tri­bunal (here­after in this Chap­ter, referred to as “State Bench”) for exer­cis­ing the pow­ers of the Appel­late Tri­bunal with­in the con­cerned State or Union territory:

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.

• 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).
• 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
• Each State Bench and Area Bench­es of the Appel­late Tri­bunal shall con­sist of a Judi­cial Mem­ber, one Tech­ni­cal Mem­ber (Cen­tre) and one Tech­ni­cal Mem­ber (State) and the State Gov­ern­ment may des­ig­nate the senior most Judi­cial Mem­ber in a State as the State President.
• In the absence of a Mem­ber in any Bench due to vacan­cy or oth­er­wise, any appeal may, with the approval of the Pres­i­dent or, as the case may be, the State Pres­i­dent, be heard by a Bench of two Members:

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.

• 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
• The Gov­ern­ment, in con­sul­ta­tion with the Pres­i­dent may, for the admin­is­tra­tive con­ve­nience, transfer— 
  • any Judi­cial Mem­ber or a Mem­ber Tech­ni­cal (State) from one Bench to anoth­er Bench, whether Nation­al or Region­al; or
  • any Mem­ber Tech­ni­cal (Cen­tre) from one Bench to anoth­er Bench, whether Nation­al, Region­al, State or
• 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
• No act or pro­ceed­ings of the Appel­late Tri­bunal shall be ques­tioned or shall be invalid mere­ly on the ground of the exis­tence of any vacan­cy or defect in the con­sti­tu­tion of the Appellate

110. (1) A per­son shall not be qual­i­fied for appoint­ment as—

• 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;
• a Judi­cial Mem­ber, unless he— 
  • has been a Judge of the High Court; or
  • is or has been a Dis­trict Judge qual­i­fied to be appoint­ed as a Judge of a High Court; or

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pres­i­dent and Mem­bers of Appel­late Tribunal,

their qual­i­fi­ca­tion, appoint­ment, con­di­tions of ser­vice, etc.

 

 

• is or has been a Mem­ber of Indi­an Legal Ser­vice and has held a post not less than Addi­tion­al Sec­re­tary for three years;

• 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;
• 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
• 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.

• 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
• The Judi­cial Mem­ber of the State Bench or Area Bench­es shall be appoint­ed by the State Gov­ern­ment after con­sul­ta­tion with the Chief Jus­tice of the High Court of the State or his
• The Tech­ni­cal Mem­ber (Cen­tre) of the State Bench or Area Bench­es shall be appoint­ed by the Cen­tral Gov­ern­ment and Tech­ni­cal Mem­ber (State) of the State Bench or Area Bench­es shall be appoint­ed by the State Gov­ern­ment in such man­ner as may be prescribed.
• No appoint­ment of the Mem­bers of the Appel­late Tri­bunal shall be invalid mere­ly by the rea­son of any vacan­cy or defect in the con­sti­tu­tion of the Selection
• Before appoint­ing any per­son as the Pres­i­dent or Mem­bers of the Appel­late Tri­bunal, the Cen­tral Gov­ern­ment or, as the case may be, the State Gov­ern­ment, shall sat­is­fy itself that such per­son does not have any finan­cial or oth­er inter­ests which are like­ly to prej­u­di­cial­ly affect his func­tions as such Pres­i­dent or
• The salary, allowances and oth­er terms and con­di­tions of ser­vice of the Pres­i­dent, State Pres­i­dent and the Mem­bers of the Appel­late Tri­bunal shall be such as may be prescribed:

Pro­vid­ed that nei­ther salary and allowances nor oth­er terms and con­di­tions of ser­vice of the Pres­i­dent, State Pres­i­dent or Mem­bers of the Appel­late Tri­bunal shall be var­ied to their dis­ad­van­tage after their appointment.

• The Pres­i­dent of the Appel­late Tri­bunal shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of sev­en­ty years, whichev­er is ear­li­er and shall be eli­gi­ble for

 

 

• The Judi­cial Mem­ber of the Appel­late Tri­bunal and the State Pres­i­dent shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of six­ty-five years, whichev­er is ear­li­er and shall be eli­gi­ble for
• The Tech­ni­cal Mem­ber (Cen­tre) or Tech­ni­cal Mem­ber (State) of the Appel­late Tri­bunal shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of six­ty-five years, whichev­er is ear­li­er and shall be eli­gi­ble for
• The Pres­i­dent, State Pres­i­dent or any Mem­ber may, by notice in writ­ing under his hand addressed to the Cen­tral Gov­ern­ment or, as the case may be, the State Gov­ern­ment resign from his office:

Pro­vid­ed that the Pres­i­dent, State Pres­i­dent or Mem­ber shall con­tin­ue to hold office until the expiry of three months from the date of receipt of such notice by the Cen­tral Gov­ern­ment, or, as the case may be, the State Gov­ern­ment or until a per­son duly appoint­ed as his suc­ces­sor enters upon his office or until the expiry of his term of office, whichev­er is the earliest.

• The Cen­tral Gov­ern­ment may, after con­sul­ta­tion with the Chief Jus­tice of India, in case of the Pres­i­dent, Judi­cial Mem­bers and Tech­ni­cal Mem­bers of the Nation­al Bench, Region­al Bench­es or Tech­ni­cal Mem­bers (Cen­tre) of the State Bench or Area Bench­es, and the State Gov­ern­ment may, after con­sul­ta­tion with the Chief Jus­tice of High Court, in case of the State Pres­i­dent, Judi­cial Mem­bers, Tech­ni­cal Mem­bers (State) of the State Bench or Area Bench­es, may remove from the office such Pres­i­dent or Mem­ber, who— 
  • has been adjudged an insol­vent; or
  • has been con­vict­ed of an offence which, in the opin­ion of such Gov­ern­ment involves moral turpi­tude; or
  • has become phys­i­cal­ly or men­tal­ly inca­pable of act­ing as such President,

State Pres­i­dent or Mem­ber; or

• has acquired such finan­cial or oth­er inter­est as is like­ly to affect prej­u­di­cial­ly his func­tions as such Pres­i­dent, State Pres­i­dent or Mem­ber; or
• 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.

• With­out prej­u­dice to the pro­vi­sions of sub-sec­tion (13),––
  • 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;
  • 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
• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro­ce­dure before

Appel­late Tribunal.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appeals to Appel­late Tribunal.

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).

• The State Gov­ern­ment, with the con­cur­rence of the Chief Jus­tice of the High Court, may sus­pend from office, a Judi­cial Mem­ber or Tech­ni­cal Mem­ber (State) of the State Bench or Area Bench­es in respect of whom a ref­er­ence has been made to the Judge of the High Court under sub-sec­tion (14).
• Sub­ject to the pro­vi­sions of arti­cle 220 of the Con­sti­tu­tion, the Pres­i­dent, State Pres­i­dent or oth­er Mem­bers, on ceas­ing to hold their office, shall not be eli­gi­ble to appear, act or plead before the Nation­al Bench and the Region­al Bench­es or the State Bench and the Area Bench­es there­of where he was the Pres­i­dent or, as the case may be, a

111. (1) The Appel­late Tri­bunal shall not, while dis­pos­ing of any pro­ceed­ings before it or an appeal before it, be bound by the pro­ce­dure laid down in the Code of Civ­il Pro­ce­dure, 1908, but shall be guid­ed by the prin­ci­ples of nat­ur­al jus­tice and sub­ject to the oth­er pro­vi­sions of this Act and the rules made there­un­der, the Appel­late Tri­bunal shall have pow­er to reg­u­late its own

• The Appel­late Tri­bunal shall, for the pur­pos­es of dis­charg­ing its func­tions under this Act, have the same pow­ers as are vest­ed in a civ­il court under the Code of Civ­il Pro­ce­dure, 1908 while try­ing a suit in respect of the fol­low­ing mat­ters, namely:— 
  • sum­mon­ing and enforc­ing the atten­dance of any per­son and exam­in­ing him on oath;
  • requir­ing the dis­cov­ery and pro­duc­tion of documents;
  • receiv­ing evi­dence on affidavits;
  • 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;
  • issu­ing com­mis­sions for the exam­i­na­tion of wit­ness­es or documents;
  • dis­miss­ing a rep­re­sen­ta­tion for default or decid­ing it ex parte;
  • set­ting aside any order of dis­missal of any rep­re­sen­ta­tion for default or any order passed by it ex parte; and
  • any oth­er mat­ter which may be
• 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,— 
  • in the case of an order against a com­pa­ny, the reg­is­tered office of the com­pa­ny is sit­u­at­ed; or
  • in the case of an order against any oth­er per­son, the per­son con­cerned vol­un­tar­i­ly resides or car­ries on busi­ness or per­son­al­ly works for
• 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,

112. (1) Any per­son aggriev­ed by an order passed against him under sec­tion 107 or sec­tion 108 of this Act or the State Goods and Ser­vices Tax Act or the Union Territory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5  of 1908.

 

 

 

 

 

 

5  of 1908.

 

 

 

 

 

 

 

 

 

1  of 1872.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45  of 1860.

2  of 1974.

 

 

Goods and Ser­vices Tax Act may appeal to the Appel­late Tri­bunal against such order with­in three months from the date on which the order sought to be appealed against is com­mu­ni­cat­ed to the per­son pre­fer­ring the appeal.

• The Appel­late Tri­bunal may, in its dis­cre­tion, refuse to admit any such appeal where the tax or input tax cred­it involved or the dif­fer­ence in tax or input tax cred­it involved or the amount of fine, fee or penal­ty deter­mined by such order, does not exceed fifty thousand
• The Com­mis­sion­er may, on his own motion, or upon request from the Com­mis­sion­er of State tax or Com­mis­sion­er of Union ter­ri­to­ry tax, call for and exam­ine the record of any order passed by the Appel­late Author­i­ty or the Revi­sion­al Author­i­ty under this Act or the State Goods and Ser­vices Tax Act or the Union Ter­ri­to­ry Goods and Ser­vices Tax Act for the pur­pose of sat­is­fy­ing him­self as to the legal­i­ty or pro­pri­ety of the said order and may, by order, direct any offi­cer sub­or­di­nate to him to apply to the Appel­late Tri­bunal with­in six months from the date on which the said order has been passed for deter­mi­na­tion of such points aris­ing out of the said order as may be spec­i­fied by the Com­mis­sion­er in his
• Where in pur­suance of an order under sub-sec­tion (3) the autho­rised offi­cer makes an appli­ca­tion to the Appel­late Tri­bunal, such appli­ca­tion shall be dealt with by the Appel­late Tri­bunal as if it were an appeal made against the order under sub-sec­tion (11) of sec­tion 107 or under sub-sec­tion (1) of sec­tion 108 and the pro­vi­sions of this Act shall apply to such appli­ca­tion, as they apply in rela­tion to appeals filed under sub-sec­tion (1).
• On receipt of notice that an appeal has been pre­ferred under this sec­tion, the par­ty against whom the appeal has been pre­ferred may, notwith­stand­ing that he may not have appealed against such order or any part there­of, file, with­in forty-five days of the receipt of notice, a mem­o­ran­dum of cross-objec­tions, ver­i­fied in the pre­scribed man­ner, against any part of the order appealed against and such mem­o­ran­dum shall be dis­posed of by the Appel­late Tri­bunal, as if it were an appeal pre­sent­ed with­in the time spec­i­fied in sub-sec­tion (1).
• The Appel­late Tri­bunal may admit an appeal with­in three months after the expiry of the peri­od referred to in sub-sec­tion (1), or per­mit the fil­ing of a mem­o­ran­dum of cross-objec­tions with­in forty-five days after the expiry of the peri­od referred to in sub-sec­tion (5) if it is sat­is­fied that there was suf­fi­cient cause for not pre­sent­ing it with­in that period.
• An appeal to the Appel­late Tri­bunal shall be in such form, ver­i­fied in such man­ner and shall be accom­pa­nied by such fee, as may be
• No appeal shall be filed under sub-sec­tion (1), unless the appel­lant has paid–– 
  • 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
  • a sum equal to twen­ty per 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.
• 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.
• Every appli­ca­tion made before the Appel­late Tribunal,— 
  • in an appeal for rec­ti­fi­ca­tion of error or for any oth­er pur­pose; or
  • for restora­tion of an appeal or an appli­ca­tion, shall be accom­pa­nied by such fees as may be

 

 

 

Orders of Appel­late Tribunal.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finan­cial and admin­is­tra­tive pow­ers of

Pres­i­dent.

 

 

 

 

 

 

Inter­est on refund of amount paid for admis­sion of appeal.

 

 

Appear­ance by autho­rised representative.

113. (1) The Appel­late Tri­bunal may, after giv­ing the par­ties to  the appeal    an oppor­tu­ni­ty of being heard, pass such orders there­on as it thinks fit, con­firm­ing, mod­i­fy­ing or annulling the deci­sion or order appealed against or may refer the case back to the Appel­late Author­i­ty, or the Revi­sion­al Author­i­ty or to the orig­i­nal adju­di­cat­ing author­i­ty, with such direc­tions as it may think fit, for a fresh adju­di­ca­tion or deci­sion after tak­ing addi­tion­al evi­dence, if

• The Appel­late Tri­bunal may, if suf­fi­cient cause is shown, at any stage of hear­ing of an appeal, grant time to the par­ties or any of them and adjourn the hear­ing of the appeal for rea­sons to be record­ed in writing:

Pro­vid­ed that no such adjourn­ment shall be grant­ed more than three times to a par­ty dur­ing hear­ing of the appeal.

• The Appel­late Tri­bunal may amend any order passed by it under sub-sec­tion (1) so as to rec­ti­fy any error appar­ent on the face of the record, if such error is noticed by it on its own accord, or is brought to its notice by the Com­mis­sion­er or the Com­mis­sion­er of State tax or the Com­mis­sion­er of the Union ter­ri­to­ry tax or the oth­er par­ty to the appeal with­in a peri­od of three months from the date of the order:

Pro­vid­ed that no amend­ment which has the effect of enhanc­ing an assess­ment or reduc­ing a refund or input tax cred­it or oth­er­wise increas­ing the lia­bil­i­ty of the oth­er par­ty, shall be made under this sub-sec­tion, unless the par­ty has been giv­en an oppor­tu­ni­ty of being heard.

• The Appel­late Tri­bunal shall, as far as pos­si­ble, hear and decide every appeal with­in a peri­od of one year from the date on which it is
• The Appel­late Tri­bunal shall send a copy of every order passed under this sec­tion to the Appel­late Author­i­ty or the Revi­sion­al Author­i­ty, or the orig­i­nal adju­di­cat­ing author­i­ty, as the case may be, the appel­lant and the juris­dic­tion­al Com­mis­sion­er or the Com­mis­sion­er of State tax or the Union territory
• Save as pro­vid­ed in sec­tion 117 or sec­tion 118, orders passed by the Appel­late Tri­bunal on an appeal shall be final and bind­ing on the

114. The Pres­i­dent shall exer­cise such finan­cial and admin­is­tra­tive pow­ers over the Nation­al Bench and Region­al Bench­es of the Appel­late Tri­bunal as may be prescribed:

Pro­vid­ed that the Pres­i­dent shall have the author­i­ty to del­e­gate such of his finan­cial and admin­is­tra­tive pow­ers as he may think fit to any oth­er Mem­ber or any offi­cer of the Nation­al Bench and Region­al Bench­es, sub­ject to the con­di­tion that such Mem­ber or offi­cer shall, while exer­cis­ing such del­e­gat­ed pow­ers, con­tin­ue to act under the direc­tion, con­trol and super­vi­sion of the President.

115. Where an amount paid by the appel­lant under sub-sec­tion (6) of sec­tion 107 or sub-sec­tion (8) of sec­tion 112 is required to be refund­ed con­se­quent to any order of the Appel­late Author­i­ty or of the Appel­late Tri­bunal, inter­est at the rate spec­i­fied under sec­tion 56 shall be payable in respect of such refund from the date of pay­ment of the amount till the date of refund of such
116. (1) Any per­son who is enti­tled or required to appear before an offi­cer appoint­ed under this Act, or the Appel­late Author­i­ty or the Appel­late Tri­bunal in con­nec­tion with any pro­ceed­ings under this Act, may, oth­er­wise than when required under this Act to appear per­son­al­ly for exam­i­na­tion on oath or affir­ma­tion, sub­ject to the oth­er pro­vi­sions of this sec­tion, appear by an authorised

• For the pur­pos­es of this Act, the expres­sion “autho­rised rep­re­sen­ta­tive” shall mean a per­son autho­rised by the per­son referred to in sub-sec­tion (1) to appear on his behalf, being— 
  • his rel­a­tive or reg­u­lar employ­ee; or

 

 

 

• 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
• 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
• a retired offi­cer of the Com­mer­cial Tax Depart­ment of any State Gov­ern­ment or Union ter­ri­to­ry or of the Board who, dur­ing his ser­vice under the Gov­ern­ment, had worked in a post not below the rank than that of a Group‑B Gazetted offi­cer for a peri­od of not less than two years:

Pro­vid­ed that such offi­cer shall not be enti­tled to appear before any pro­ceed­ings under this Act for a peri­od of one year from the date of his retire­ment or res­ig­na­tion; or

• any per­son who has been autho­rised to act as a goods and ser­vices tax prac­ti­tion­er on behalf of the con­cerned registered

• No per­son,—
  • who has been dis­missed or removed from Gov­ern­ment ser­vice; or
  • 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
  • who is found guilty of mis­con­duct by the pre­scribed authority;
  • who has been adjudged as an insolvent,

shall be qual­i­fied to rep­re­sent any per­son under sub-sec­tion (1)—

• for all times in case of per­sons referred to in claus­es (a), (b) and (c); and
• for the peri­od dur­ing which the insol­ven­cy con­tin­ues in the case of a per­son referred to in clause (d).
• 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

117. (1) Any per­son aggriev­ed by any order passed by the State Bench or Area Bench­es of the Appel­late Tri­bunal may file an appeal to the High Court and the High Court may admit such appeal, if it is sat­is­fied that the case involves a sub­stan­tial ques­tion of

• An appeal under sub-sec­tion (1) shall be filed with­in a peri­od of one hun­dred and eighty days from the date on which the order appealed against is received by the aggriev­ed per­son and it shall be in such form, ver­i­fied in such man­ner as may be prescribed:

Pro­vid­ed that the High Court may enter­tain an appeal after the expiry of the said peri­od if it is sat­is­fied that there was suf­fi­cient cause for not fil­ing it with­in such period.

• Where the High Court is sat­is­fied that a sub­stan­tial ques­tion of law is involved in any case, it shall for­mu­late that ques­tion and the appeal shall be heard only on the ques­tion so for­mu­lat­ed, and the respon­dents shall, at the hear­ing of the appeal, be allowed to argue that the case does not involve such question:

Pro­vid­ed that noth­ing in this sub-sec­tion shall be deemed to take away or abridge the pow­er of the court to hear, for rea­sons to be record­ed, the appeal on any oth­er sub­stan­tial ques­tion of law not for­mu­lat­ed by it, if it is sat­is­fied that the case involves such question.

• The High Court shall decide the ques­tion of law so for­mu­lat­ed and deliv­er such judg­ment there­on con­tain­ing the grounds on which such deci­sion is found­ed and may award such cost as it deems

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appeal to High Court.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appeal to Supreme Court.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sums due to be paid notwith­stand­ing appeal, etc.

 

 

 

 

Appeal not to be filed in cer­tain cases.

• The High Court may deter­mine any issue which–– 
  • has not been deter­mined by the State Bench or Area Bench­es; or
  • 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).
• 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
• Where there is no such major­i­ty, the Judges shall state the point of law upon which they dif­fer and the case shall, then, be heard upon that point only, by one or more of the oth­er Judges of the High Court and such point shall be decid­ed accord­ing to the opin­ion of the major­i­ty of the Judges who have heard the case includ­ing those who first heard
• Where the High Court deliv­ers a judg­ment in an appeal filed before it under this sec­tion, effect shall be giv­en to such judg­ment by either side on the basis of a cer­ti­fied copy of the
• Save as oth­er­wise pro­vid­ed in this Act, the pro­vi­sions of the Code of Civ­il Pro­ce­dure, 1908, relat­ing to appeals to the High Court shall, as far as may be, apply in the case of appeals under this

118. (1) An appeal shall lie to the Supreme Court—

• from any order passed by the Nation­al Bench or Region­al Bench­es of the Appel­late Tri­bunal; or
• 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
• 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
• Where the judg­ment of the High Court is var­ied or reversed in the appeal, effect shall be giv­en to the order of the Supreme Court in the man­ner pro­vid­ed in sec­tion 117 in the case of a judg­ment of the High

119. Notwith­stand­ing that an appeal has been pre­ferred to the High Court or the Supreme Court, sums due to the Gov­ern­ment as a result of an order passed by the Nation­al or Region­al Bench­es of the Appel­late Tri­bunal under sub-sec­tion (1) of sec­tion 113 or an order passed by the State Bench or Area Bench­es of the Appel­late Tri­bunal under sub-sec­tion (1) of sec­tion 113 or an order passed by the High Court under sec­tion 117, as the case may be, shall be payable in accor­dance with the order so
120. (1) The Board may, on the rec­om­men­da­tions of the Coun­cil, from time to time, issue orders or instruc­tions or direc­tions fix­ing such mon­e­tary lim­its, as it may deem fit, for the pur­pos­es of reg­u­lat­ing the fil­ing of appeal or appli­ca­tion by the offi­cer of the cen­tral tax under the pro­vi­sions of this

• Where, in pur­suance of the orders or instruc­tions or direc­tions issued under sub-sec­tion (1), the offi­cer of the cen­tral tax has not filed an appeal or appli­ca­tion against any deci­sion or order passed under the pro­vi­sions of this Act, it shall not pre­clude such offi­cer of the cen­tral tax from fil­ing appeal or appli­ca­tion in any oth­er case involv­ing the same or sim­i­lar issues or ques­tions of
• Notwith­stand­ing the fact that no appeal or appli­ca­tion has been filed by the offi­cer of the cen­tral tax pur­suant to the orders or instruc­tions or direc­tions issued under sub-sec­tion (1), no per­son, being a par­ty in appeal or appli­ca­tion shall con­tend that the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5  of 1908.

 

 

 

 

 

 

 

 

 

 

 

 

 

5  of 1908.

 

 

 

offi­cer of the cen­tral tax has acqui­esced in the deci­sion on the dis­put­ed issue by not fil­ing an appeal or application.

• The Appel­late Tri­bunal or court hear­ing such appeal or appli­ca­tion shall have regard to the cir­cum­stances under which appeal or appli­ca­tion was not filed by the offi­cer of the cen­tral tax in pur­suance of the orders or instruc­tions or direc­tions issued under sub-sec­tion (1).

121. Notwith­stand­ing any­thing to the con­trary in any pro­vi­sions of this Act, no appeal shall lie against any deci­sion tak­en or order passed by an offi­cer of cen­tral tax if such deci­sion tak­en or order passed relates to any one or more of the fol­low­ing mat­ters, namely:—

• an order of the Com­mis­sion­er or oth­er author­i­ty empow­ered to direct trans­fer of pro­ceed­ings from one offi­cer to anoth­er offi­cer; or
• an order per­tain­ing to the seizure or reten­tion of books of account, reg­is­ter and oth­er doc­u­ments; or
• an order sanc­tion­ing pros­e­cu­tion under this Act; or
• an order passed under section

CHAPTER XIX OFFENCES  AND PENALTIES

122. (1) Where a tax­able per­son who––

• sup­plies any goods or ser­vices or both with­out issue of any invoice or issues an incor­rect or false invoice with regard to any such supply;
• 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;
• 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;
• col­lects any tax in con­tra­ven­tion of the pro­vi­sions of this Act but fails to pay the same to the Gov­ern­ment beyond a peri­od of three months from the date on which such pay­ment becomes due;
• fails to deduct the tax in accor­dance with the pro­vi­sions of sub-sec­tion (1) of sec­tion 51, or deducts an amount which is less than the amount required to be deduct­ed under the said sub-sec­tion, or where he fails to pay to the Gov­ern­ment under sub-sec­tion (2) there­of, the amount deduct­ed as tax;
• fails to col­lect tax in accor­dance with the pro­vi­sions of sub-sec­tion (1) of sec­tion 52, or col­lects an amount which is less than the amount required to be col­lect­ed under the said sub-sec­tion or where he fails to pay to the Gov­ern­ment the amount col­lect­ed as tax under sub-sec­tion (3) of sec­tion 52;
• takes or utilis­es input tax cred­it with­out actu­al receipt of goods or ser­vices or both either ful­ly or par­tial­ly, in con­tra­ven­tion of the pro­vi­sions of this Act or the rules made thereunder;
• fraud­u­lent­ly obtains refund of tax under this Act;
• takes or dis­trib­utes input tax cred­it in con­tra­ven­tion of sec­tion 20, or the rules made thereunder;
• fal­si­fies or sub­sti­tutes finan­cial records or pro­duces fake accounts or doc­u­ments or fur­nish­es any false infor­ma­tion or return with an inten­tion to evade pay­ment of tax due under this Act;

 

 

 

 

 

 

 

 

 

Non- appeal­able deci­sions and orders.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Penal­ty for certain

offences.

 

 

• is liable to be reg­is­tered under this Act but fails to obtain registration;
• fur­nish­es any false infor­ma­tion with regard to reg­is­tra­tion par­tic­u­lars, either at the time of apply­ing for reg­is­tra­tion, or subsequently;
• obstructs or pre­vents any offi­cer in dis­charge of his duties under this Act;
• trans­ports any tax­able goods with­out the cov­er of doc­u­ments as may be spec­i­fied in this behalf;
• sup­press­es his turnover lead­ing to eva­sion of tax under this Act;
• fails to keep, main­tain or retain books of account and oth­er doc­u­ments in accor­dance with the pro­vi­sions of this Act or the rules made thereunder;
• fails to fur­nish infor­ma­tion or doc­u­ments called for by an offi­cer in accor­dance with the pro­vi­sions of this Act or the rules made there­un­der or fur­nish­es false infor­ma­tion or doc­u­ments dur­ing any pro­ceed­ings under this Act;
• sup­plies, trans­ports or stores any goods which he has rea­sons to believe are liable to con­fis­ca­tion under this Act;
• issues any invoice or doc­u­ment by using the reg­is­tra­tion num­ber of anoth­er reg­is­tered person;
• tam­pers with, or destroys any mate­r­i­al evi­dence or document;
• dis­pos­es off or tam­pers with any goods that have been detained, seized, or attached under this Act,

he shall be liable to pay a penal­ty of ten thou­sand rupees or an amount equiv­a­lent to the tax evad­ed or the tax not deduct­ed under sec­tion 51 or short deduct­ed or deduct­ed but not paid to the Gov­ern­ment or tax not col­lect­ed under sec­tion 52 or short col­lect­ed or col­lect­ed but not paid to the Gov­ern­ment or input tax cred­it availed of or passed on or dis­trib­uted irreg­u­lar­ly, or the refund claimed fraud­u­lent­ly, whichev­er is higher.

• 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,— 
  • 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 of the tax due from such per­son, whichev­er is higher;
  • 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
• Any per­son who–– 
  • aids or abets any of the offences spec­i­fied in claus­es (i) to (xxi) of sub-sec­tion (1);
  • 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;
  • 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;
  • 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;

 

 

 

• 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. If a per­son who is required to fur­nish an infor­ma­tion return under sec­tion 150 fails to do so with­in the peri­od spec­i­fied in the notice issued under sub-sec­tion (3) there­of, the prop­er offi­cer may direct that such per­son shall be liable to pay a penal­ty of one hun­dred rupees for each day of the peri­od dur­ing which the fail­ure to fur­nish such return continues:

Pro­vid­ed that the penal­ty imposed under this sec­tion shall not exceed five thou­sand rupees.

124. If any per­son required to fur­nish any infor­ma­tion or return under sec­tion 151,—

• with­out rea­son­able cause fails to fur­nish such infor­ma­tion or return as may be required under that sec­tion, or
• wil­ful­ly fur­nish­es or caus­es to fur­nish any infor­ma­tion or return which he knows to be false,

he shall be pun­ish­able with a fine which may extend to ten thou­sand rupees and in case of a con­tin­u­ing offence to a fur­ther fine which may extend to one hun­dred rupees for each day after the first day dur­ing which the offence con­tin­ues sub­ject to a max­i­mum lim­it of twen­ty- five thou­sand rupees.

125. Any per­son, who con­tra­venes any of the pro­vi­sions of this Act or any rules made there­un­der for which no penal­ty is sep­a­rate­ly pro­vid­ed for in this Act, shall be liable to a penal­ty which may extend to twen­ty-five thousand
126. (1) No offi­cer under this Act shall impose any penal­ty for minor breach­es of tax reg­u­la­tions or pro­ce­dur­al require­ments and in par­tic­u­lar, any omis­sion or mis­take in doc­u­men­ta­tion which is eas­i­ly rec­ti­fi­able and made with­out fraud­u­lent intent or gross negligence.

Expla­na­tion.––For the pur­pose of this  sub-section,––

• a breach shall be con­sid­ered a ‘minor breach’ if the amount of tax involved is less than five thou­sand rupees;
• an omis­sion or mis­take in doc­u­men­ta­tion shall be con­sid­ered to be eas­i­ly rec­ti­fi­able if the same is an error appar­ent on the face of
• 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
• No penal­ty shall be imposed on any per­son with­out giv­ing him an oppor­tu­ni­ty of being
• The offi­cer under this Act shall while impos­ing penal­ty in an order for a breach of any law, reg­u­la­tion or pro­ce­dur­al require­ment, spec­i­fy the nature of the breach and the applic­a­ble law, reg­u­la­tion or pro­ce­dure under which the amount of penal­ty for the breach has been
• When a per­son vol­un­tar­i­ly dis­clos­es to an offi­cer under this Act the cir­cum­stances of a breach of the tax law, reg­u­la­tion or pro­ce­dur­al require­ment pri­or to the dis­cov­ery of the breach by the offi­cer under this Act, the prop­er offi­cer may con­sid­er this fact as a mit­i­gat­ing fac­tor when quan­ti­fy­ing a penal­ty for that
• The pro­vi­sions of this sec­tion shall not apply in such cas­es where the penal­ty spec­i­fied under this Act is either a fixed sum or expressed as a fixed

127. Where the prop­er offi­cer is of the view that a per­son is liable to a penal­ty and the same is not cov­ered under any pro­ceed­ings under sec­tion 62 or sec­tion 63 or sec­tion 64 or

 

 

 

 

 

Penal­ty for fail­ure to furnish

infor­ma­tion return.

 

 

 

 

Fine for fail­ure to furnish

sta­tis­tics.

 

 

 

 

 

 

 

 

 

 

Gen­er­al penalty.

 

 

Gen­er­al dis­ci­plines relat­ed to penalty.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pow­er to impose

penal­ty in cer­tain cases.

 

 

 

 

 

 

 

Pow­er  to waive penal­ty or  fee  or both.

 

 

Deten­tion, seizure and release of goods and

con­veyances in transit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Con­fis­ca­tion of goods or con­veyances and levy of penalty.

sec­tion 73 or sec­tion 74 or sec­tion 129 or sec­tion 130, he may issue an order levy­ing such penal­ty after giv­ing a rea­son­able oppor­tu­ni­ty of being heard to such person.

128. The Gov­ern­ment may, by noti­fi­ca­tion, waive in part or full, any penal­ty referred to in sec­tion 122 or sec­tion 123 or sec­tion 125 or any late fee referred to in sec­tion 47 for such class of tax­pay­ers and under such mit­i­gat­ing cir­cum­stances as may be spec­i­fied there­in on the rec­om­men­da­tions of the
129. (1) Notwith­stand­ing any­thing con­tained in this Act, where any per­son trans­ports any goods or stores any goods while they are in tran­sit in con­tra­ven­tion of the pro­vi­sions of this Act or the rules made there­un­der, all such goods and con­veyance used as a means of trans­port for car­ry­ing the said goods and doc­u­ments relat­ing to such goods and con­veyance shall be liable to deten­tion or seizure and after deten­tion or seizure, shall be released,––

• on pay­ment of the applic­a­ble tax and penal­ty equal to one hun­dred per 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;
• on pay­ment of the applic­a­ble tax and penal­ty equal to the fifty per 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;
• 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.

• The pro­vi­sions of sub-sec­tion (6) of sec­tion 67 shall, mutatis mutan­dis, apply for deten­tion and seizure of goods and
• The prop­er offi­cer detain­ing or seiz­ing goods or con­veyances shall issue a notice spec­i­fy­ing the tax and penal­ty payable and there­after, pass an order for pay­ment of tax and penal­ty under clause (a) or clause (b) or clause (c).
• No tax, inter­est or penal­ty shall be deter­mined under sub-sec­tion (3) with­out giv­ing the per­son con­cerned an oppor­tu­ni­ty of being
• On pay­ment of amount referred in sub-sec­tion (1), all pro­ceed­ings in respect of the notice spec­i­fied in sub-sec­tion (3) shall be deemed to be
• Where the per­son trans­port­ing any goods or the own­er of the goods fails to pay the amount of tax and penal­ty as pro­vid­ed in sub-sec­tion (1) with­in sev­en days of such deten­tion or seizure, fur­ther pro­ceed­ings shall be ini­ti­at­ed in accor­dance with the pro­vi­sions of sec­tion 130:

Pro­vid­ed that where the detained or seized goods are per­ish­able or haz­ardous in nature or are like­ly to depre­ci­ate in val­ue with pas­sage of time, the said peri­od of sev­en days may be reduced by the prop­er officer.

130. (1) Notwith­stand­ing any­thing con­tained in this Act, if any person—

• sup­plies or receives any goods in con­tra­ven­tion of any of the pro­vi­sions of this Act or the rules made there­un­der with intent to evade pay­ment of tax; or
• does not account for any goods on which he is liable to pay tax under this Act; or
• sup­plies any goods liable to tax under this Act with­out hav­ing applied for reg­is­tra­tion; or

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2  of 1974.

• con­tra­venes any of the pro­vi­sions of this Act or the rules made there­un­der with intent to evade pay­ment of tax; or
• uses any con­veyance as a means of trans­port for car­riage of goods in con­tra­ven­tion of the pro­vi­sions of this Act or the rules made there­un­der unless the own­er of the con­veyance proves that it was so used with­out the knowl­edge or con­nivance of the own­er him­self, his agent, if any, and the per­son in charge of the conveyance,

then, all such goods or con­veyances shall be liable to con­fis­ca­tion and the per­son shall be liable to penal­ty under sec­tion 122.

• When­ev­er con­fis­ca­tion of any goods or con­veyance is autho­rised by this Act, the offi­cer adjudg­ing it shall give to the own­er of the goods an option to pay in lieu of con­fis­ca­tion, such fine as the said offi­cer thinks fit:

Pro­vid­ed that such fine levi­able shall not exceed the mar­ket val­ue of the goods con­fis­cat­ed, less the tax charge­able thereon:

Pro­vid­ed fur­ther that the aggre­gate of such fine and penal­ty levi­able shall not be less than the amount of penal­ty levi­able under sub-sec­tion (1) of sec­tion 129:

Pro­vid­ed also that where any such con­veyance is used for the car­riage of the goods or pas­sen­gers for hire, the own­er of the con­veyance shall be giv­en an option to pay in lieu of the con­fis­ca­tion of the con­veyance a fine equal to the tax payable on the goods being trans­port­ed thereon.

• 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
• No order for con­fis­ca­tion of goods or con­veyance or for impo­si­tion of penal­ty shall be issued with­out giv­ing the per­son an oppor­tu­ni­ty of being
• Where any goods or con­veyance are con­fis­cat­ed under this Act, the title of such goods or con­veyance shall there­upon vest in the
• The prop­er offi­cer adjudg­ing con­fis­ca­tion shall take and hold pos­ses­sion of the things con­fis­cat­ed and every offi­cer of Police, on the req­ui­si­tion of such prop­er offi­cer, shall assist him in tak­ing and hold­ing such
• The prop­er offi­cer may, after sat­is­fy­ing him­self that the con­fis­cat­ed goods or con­veyance are not required in any oth­er pro­ceed­ings under this Act and after giv­ing rea­son­able time not exceed­ing three months to pay fine in lieu of con­fis­ca­tion, dis­pose of such goods or con­veyance and deposit the sale pro­ceeds there­of with the

131. With­out prej­u­dice to the pro­vi­sions con­tained in the Code of Crim­i­nal Pro­ce­dure, 1973, no con­fis­ca­tion made or penal­ty imposed under the pro­vi­sions of this Act or the rules made there­un­der shall pre­vent the inflic­tion of any oth­er pun­ish­ment to which the per­son affect­ed there­by is liable under the pro­vi­sions of this Act or under any oth­er law for the time being in
132. (1) Who­ev­er com­mits any of the fol­low­ing offences, namely:—

• 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;
• 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;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Con­fis­ca­tion or penalty

not to inter­fere with other

pun­ish­ments.

 

Pun­ish­ment for cer­tain offences.

 

 

• avails input tax cred­it using such invoice or bill referred to in clause (b);
• 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;
• evades tax, fraud­u­lent­ly avails input tax cred­it or fraud­u­lent­ly obtains refund and where such offence is not cov­ered under claus­es (a) to (d);
• 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;
• obstructs or pre­vents any offi­cer in the dis­charge of his duties under this

Act;

• 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;

• 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;
• tam­pers with or destroys any mate­r­i­al evi­dence or documents;
• 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
• attempts to com­mit, or abets the com­mis­sion of any of the offences men­tioned in claus­es (a) to (k) of this section,

shall be punishable––

• in cas­es where the amount of tax evad­ed or the amount of input tax cred­it wrong­ly availed or utilised or the amount of refund wrong­ly tak­en exceeds five hun­dred lakh rupees, with impris­on­ment for a term which may extend to five years and with fine;
• in cas­es where the amount of tax evad­ed or the amount of input tax cred­it wrong­ly availed or utilised or the amount of refund wrong­ly tak­en exceeds two hun­dred lakh rupees but does not exceed five hun­dred lakh rupees, with impris­on­ment for a term which may extend to three years and with fine;
• in the case of any oth­er offence where the amount of tax evad­ed or the amount of input tax cred­it wrong­ly availed or utilised or the amount of refund wrong­ly tak­en exceeds one hun­dred lakh rupees but does not exceed two hun­dred lakh rupees, with impris­on­ment for a term which may extend to one year and with fine;
• in cas­es where he com­mits or abets the com­mis­sion of an offence spec­i­fied in clause (f) or clause (g) or clause (j), he shall be pun­ish­able with impris­on­ment for a term which may extend to six months or with fine or with 
  • Where any per­son con­vict­ed of an offence under this sec­tion is again con­vict­ed of an offence under this sec­tion, then, he shall be pun­ish­able for the sec­ond and for every sub­se­quent offence with impris­on­ment for a term which may extend to five years and with
  • The impris­on­ment referred to in claus­es (i), (ii) and (iii) of sub-sec­tion (1) and sub-sec­tion (2) shall, in the absence of spe­cial and ade­quate rea­sons to the con­trary to be record­ed in the judg­ment of the Court, be for a term not less than six

 

 

 

2  of 1974.

• Notwith­stand­ing any­thing con­tained in the Code of Crim­i­nal Pro­ce­dure, 1973, all offences under this Act, except the offences referred to in sub-sec­tion (5) shall be non- cog­niz­able and
• The offences spec­i­fied in clause (a) or clause (b) or clause (c) or clause (d) of sub-sec­tion (1) and pun­ish­able under clause (i) of that sub-sec­tion shall be cog­niz­able and non-bailable.
• A per­son shall not be pros­e­cut­ed for any offence under this sec­tion except with the pre­vi­ous sanc­tion of the

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. (1) Where any per­son engaged in con­nec­tion with the col­lec­tion of sta­tis­tics under sec­tion 151 or com­pi­la­tion or com­put­er­i­sa­tion there­of or if any offi­cer of cen­tral tax hav­ing access to infor­ma­tion spec­i­fied under sub-sec­tion (1) of sec­tion 150, or if any per­son engaged in con­nec­tion with the pro­vi­sion of ser­vice on the com­mon por­tal or the agent of com­mon por­tal, wil­ful­ly dis­clos­es any infor­ma­tion or the con­tents of any return fur­nished under this Act or rules made there­un­der oth­er­wise than in exe­cu­tion of his duties under the said sec­tions or for the pur­pos­es of pros­e­cu­tion for an offence under this Act or under any oth­er Act for the time being in force, he shall be pun­ish­able with impris­on­ment for a term which may extend to six months or with fine which may extend to twen­ty-five thou­sand rupees, or with

• Any per­son—
  • who is a Gov­ern­ment ser­vant shall not be pros­e­cut­ed for any offence under this sec­tion except with the pre­vi­ous sanc­tion of the Government;
  • who is not a Gov­ern­ment ser­vant shall not be pros­e­cut­ed for any offence under this sec­tion except with the pre­vi­ous sanc­tion of the

134. No court shall take cog­nizance of any offence pun­ish­able under this Act or the rules made there­un­der except with the pre­vi­ous sanc­tion of the Com­mis­sion­er, and no court infe­ri­or to that of a Mag­is­trate of the First Class, shall try any such
135. In any pros­e­cu­tion for an offence under this Act which requires a cul­pa­ble men­tal state on the part of the accused, the court shall pre­sume the exis­tence of such men­tal state but it shall be a defence for the accused to prove the fact that he had no such men­tal state with respect to the act charged as an offence in that

Expla­na­tion.—For the pur­pos­es of this  section,––

• the expres­sion “cul­pa­ble men­tal state” includes inten­tion, motive, knowl­edge of a fact, and belief in, or rea­son to believe, a fact;
• a fact is said to be proved only when the court believes it to exist beyond rea­son­able doubt and not mere­ly when its exis­tence is estab­lished by a pre­pon­der­ance of

136. A state­ment made and signed by a per­son on appear­ance in response to any sum­mons issued under sec­tion 70 dur­ing the course of any inquiry or pro­ceed­ings under this Act shall be rel­e­vant, for the pur­pose of prov­ing, in any pros­e­cu­tion for an offence under this Act, the truth of the facts which it contains,––

• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lia­bil­i­ty of offi­cers and cer­tain oth­er persons.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cog­nizance of offences.

 

 

Pre­sump­tion of cul­pa­ble men­tal state.

 

 

 

 

 

 

 

 

 

 

 

 

Rel­e­van­cy of state­ments under cer­tain circumstances.

 

 

 

 

 

 

 

 

Offences by companies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Com­pound­ing of offences.

• 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

137. (1) Where an offence com­mit­ted by a per­son under this Act is a com­pa­ny, every per­son who, at the time the offence was com­mit­ted was in charge of, and was respon­si­ble to, the com­pa­ny for the con­duct of busi­ness of the com­pa­ny, as well as the com­pa­ny, shall be deemed to be guilty of the offence and shall be liable to be pro­ceed­ed against and punished

• Notwith­stand­ing any­thing con­tained in sub-sec­tion (1), where an offence under this Act has been com­mit­ted by a com­pa­ny and it is proved that the offence has been com­mit­ted with the con­sent or con­nivance of, or is attrib­ut­able to any neg­li­gence on the part of, any direc­tor, man­ag­er, sec­re­tary or oth­er offi­cer of the com­pa­ny, such direc­tor, man­ag­er, sec­re­tary or oth­er offi­cer shall also be deemed to be guilty of that offence and shall be liable to be pro­ceed­ed against and punished
• Where an offence under this Act has been com­mit­ted by a tax­able per­son being a part­ner­ship firm or a Lim­it­ed Lia­bil­i­ty Part­ner­ship or a Hin­du Undi­vid­ed Fam­i­ly or a trust, the part­ner or kar­ta or man­ag­ing trustee shall be deemed to be guilty of that offence and shall be liable to be pro­ceed­ed against and pun­ished accord­ing­ly and the pro­vi­sions of sub-sec­tion (2) shall, mutatis mutan­dis, apply to such
• Noth­ing con­tained in this sec­tion shall ren­der any such per­son liable to any pun­ish­ment pro­vid­ed in this Act, if he proves that the offence was com­mit­ted with­out his knowl­edge or that he had exer­cised all due dili­gence to pre­vent the com­mis­sion of such offence.

Expla­na­tion.––For the pur­pos­es of this  section,––

• “com­pa­ny” means a body cor­po­rate and includes a firm or oth­er asso­ci­a­tion of indi­vid­u­als; and
• “direc­tor”, in rela­tion to a firm, means a part­ner in the

138. (1) Any offence under this Act may, either before or after the insti­tu­tion of pros­e­cu­tion, be com­pound­ed by the Com­mis­sion­er on pay­ment, by the per­son accused of the offence, to the Cen­tral Gov­ern­ment or the State Gov­ern­ment, as the case be, of such com­pound­ing amount in such man­ner as may be prescribed:

Pro­vid­ed that noth­ing con­tained in this sec­tion shall apply to—

• 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;
• 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;
• 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;
• a per­son who has been con­vict­ed for an offence under this Act by a court;
• 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

 

 

 

• 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.

• 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 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.
• On pay­ment of such com­pound­ing amount as may be deter­mined by the Com­mis­sion­er, no fur­ther pro­ceed­ings shall be ini­ti­at­ed under this Act against the accused per­son in respect of the same offence and any crim­i­nal pro­ceed­ings, if already ini­ti­at­ed in respect of the said offence, shall stand

CHAPTER XX TRANSITIONAL PROVISIONS

139. (1) On and from the appoint­ed day, every per­son reg­is­tered under any of the exist­ing laws and hav­ing a valid Per­ma­nent Account Num­ber shall be issued a cer­tifi­cate of reg­is­tra­tion on pro­vi­sion­al basis, sub­ject to such con­di­tions and in such form and man­ner as may be pre­scribed, which unless replaced by a final cer­tifi­cate of reg­is­tra­tion under sub-sec­tion (2), shall be liable to be can­celled if the con­di­tions so pre­scribed are not complied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Migra­tion of existing

tax­pay­ers.

 

• The final cer­tifi­cate of reg­is­tra­tion shall be grant­ed in such form and man­ner and sub­ject to such con­di­tions as may be
• The cer­tifi­cate of reg­is­tra­tion issued to a per­son under sub-sec­tion (1) shall be deemed to have not been issued if the said reg­is­tra­tion is can­celled in pur­suance of an appli­ca­tion filed by such per­son that he was not liable to reg­is­tra­tion under sec­tion 22 or section

140. (1) A reg­is­tered per­son, oth­er than a per­son opt­ing to pay tax under sec­tion 10, shall be enti­tled to take, in his elec­tron­ic cred­it ledger, the amount of CENVAT cred­it car­ried for­ward in the return relat­ing to the peri­od end­ing with the day imme­di­ate­ly pre­ced­ing the appoint­ed day, fur­nished by him under the exist­ing law in such man­ner as may be prescribed:

Pro­vid­ed that the reg­is­tered per­son shall not be allowed to take cred­it in the fol­low­ing cir­cum­stances, namely:—

• where the said amount of cred­it is not admis­si­ble as input tax cred­it under this Act; or
• where he has not fur­nished all the returns required under the exist­ing law for the peri­od of six months imme­di­ate­ly pre­ced­ing the appoint­ed date; or
• where the said amount of cred­it relates to goods man­u­fac­tured and cleared under such exemp­tion noti­fi­ca­tions as are noti­fied by the
• A reg­is­tered per­son, oth­er than a per­son opt­ing to pay tax under sec­tion 10, shall be enti­tled to take, in his elec­tron­ic cred­it ledger, cred­it of the unavailed CENVAT cred­it in respect of cap­i­tal goods, not car­ried for­ward in a return, fur­nished under the exist­ing law by him, for the peri­od end­ing with the day imme­di­ate­ly pre­ced­ing the appoint­ed day in such man­ner as may be prescribed:

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.

 

 

 

 

 

 

 

 

 

Tran­si­tion­al arrange­ments for input tax credit.

 

 

 

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.

• 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:–– 
  • such inputs or goods are used or intend­ed to be used for mak­ing tax­able sup­plies under this Act;
  • the said reg­is­tered per­son is eli­gi­ble for input tax cred­it on such inputs under this Act;
  • the said reg­is­tered per­son is in pos­ses­sion of invoice or oth­er pre­scribed doc­u­ments evi­denc­ing pay­ment of duty under the exist­ing law in respect of such inputs;
  • such invoic­es or oth­er pre­scribed doc­u­ments were issued not ear­li­er than twelve months imme­di­ate­ly pre­ced­ing the appoint­ed day; and
  • the sup­pli­er of ser­vices is not eli­gi­ble for any abate­ment under this Act:

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.

• 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,—
• 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
• 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).
• 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  of 1944.

32  of 1994.

 

 

• 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:–– 
  • such inputs or goods are used or intend­ed to be used for mak­ing tax­able sup­plies under this Act;
  • the said reg­is­tered per­son is not pay­ing tax under sec­tion 10;
  • the said reg­is­tered per­son is eli­gi­ble for input tax cred­it on such inputs under this Act;
  • the said reg­is­tered per­son is in pos­ses­sion of invoice or oth­er pre­scribed doc­u­ments evi­denc­ing pay­ment of duty under the exist­ing law in respect of inputs; and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58  of 1957.

 

 

51  of 1975.

 

 

51  of 1975.

• such invoic­es or oth­er pre­scribed doc­u­ments were issued not ear­li­er than twelve months imme­di­ate­ly pre­ced­ing the appointed

• Notwith­stand­ing any­thing to the con­trary con­tained in this Act, the input tax cred­it on account of any ser­vices received pri­or to the appoint­ed day by an Input Ser­vice Dis­trib­u­tor shall be eli­gi­ble for dis­tri­b­u­tion as cred­it under this Act even if the invoic­es relat­ing to such ser­vices are received on or after the appointed
• Where a reg­is­tered per­son hav­ing cen­tralised reg­is­tra­tion under the exist­ing law has obtained a reg­is­tra­tion under this Act, such per­son shall be allowed to take, in his elec­tron­ic cred­it ledger, cred­it of the amount of CENVAT cred­it car­ried for­ward in a return, fur­nished under the exist­ing law by him, in respect of the peri­od end­ing with the day imme­di­ate­ly pre­ced­ing the appoint­ed day in such man­ner as may be prescribed:

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.

• 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
• The amount of cred­it under sub-sec­tions (3), (4) and (6) shall be cal­cu­lat­ed in such man­ner as may be

Expla­na­tion 1.—For the pur­pos­es of sub-sec­tions (3), (4) and (6), the expres­sion “eli­gi­ble duties” means––

• the addi­tion­al duty of excise levi­able under sec­tion 3 of the Addi­tion­al Duties of Excise (Goods of Spe­cial Impor­tance) Act, 1957;
• the addi­tion­al duty levi­able under sub-sec­tion (1) of sec­tion 3 of the Cus­toms Tar­iff Act, 1975;
• the addi­tion­al duty levi­able under sub-sec­tion (5) of sec­tion 3 of the Cus­toms Tar­iff Act, 1975;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tran­si­tion­al pro­vi­sions relat­ing to job work.

• the addi­tion­al duty of excise levi­able under sec­tion 3 of the Addi­tion­al Duties of Excise (Tex­tile and Tex­tile Arti­cles) Act, 1978;
• the duty of excise spec­i­fied in the First Sched­ule to the Cen­tral Excise Tar­iff Act, 1985;
• the duty of excise spec­i­fied in the Sec­ond Sched­ule to the Cen­tral Excise Tar­iff Act, 1985; and
• the Nation­al Calami­ty Con­tin­gent Duty levi­able under sec­tion 136 of the Finance Act, 2001,

in respect of inputs held in stock and inputs con­tained in semi-fin­ished or fin­ished goods held in stock on the appoint­ed day.

Expla­na­tion 2.—For the pur­pos­es of sub-sec­tion (5), the expres­sion “eli­gi­ble duties and tax­es” means––

• the addi­tion­al duty of excise levi­able under sec­tion 3 of the Addi­tion­al Duties of Excise (Goods of Spe­cial Impor­tance) Act, 1957;
• the addi­tion­al duty levi­able under sub-sec­tion (1) of sec­tion 3 of the Cus­toms Tar­iff Act, 1975;
• the addi­tion­al duty levi­able under sub-sec­tion (5) of sec­tion 3 of the Cus­toms Tar­iff Act, 1975;
• the addi­tion­al duty of excise levi­able under sec­tion 3 of the Addi­tion­al Duties of Excise (Tex­tile and Tex­tile Arti­cles) Act, 1978;
• the duty of excise spec­i­fied in the First Sched­ule to the Cen­tral Excise Tar­iff Act, 1985;
• the duty of excise spec­i­fied in the Sec­ond Sched­ule to the Cen­tral Excise Tar­iff Act, 1985;
• the Nation­al Calami­ty Con­tin­gent Duty levi­able under sec­tion 136 of the Finance Act, 2001; and
• the ser­vice tax levi­able under sec­tion 66B of the Finance Act, 1994, in respect of inputs and input ser­vices received on or after the appointed

141. (1) Where any inputs received at a place of busi­ness had been removed as such or removed after being par­tial­ly processed to a job work­er for fur­ther pro­cess­ing, test­ing, repair, recon­di­tion­ing or any oth­er pur­pose in accor­dance with the pro­vi­sions of exist­ing law pri­or to the appoint­ed day and such inputs are returned to the said place on or after the appoint­ed day, no tax shall be payable if such inputs, after com­ple­tion of the job work or oth­er­wise, are returned to the said place with­in six months from the appoint­ed day:

Pro­vid­ed that the peri­od of six months may, on suf­fi­cient cause being shown, be extend­ed by the Com­mis­sion­er for a fur­ther peri­od not exceed­ing two months:

Pro­vid­ed fur­ther that if such inputs are not returned with­in the peri­od spec­i­fied in this sub-sec­tion, the input tax cred­it shall be liable to be recov­ered in accor­dance with the pro­vi­sions of clause (a) of sub-sec­tion (8) of sec­tion 142.

• 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:

 

40  of 1978.

 

5  of 1986.

 

 

5  of 1986.

 

 

14  of 2001.

 

 

 

 

 

 

 

 

 

58  of 1957.

 

 

51  of 1975.

 

 

51  of 1975.

 

 

40  of 1978.

 

 

5  of 1986.

 

 

5  of 1986.

 

 

14  of 2001.

 

32  of 1994.

 

 

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.

• 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.

• 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

142. (1) Where any goods on which duty, if any, had been paid under the exist­ing law at the time of removal there­of, not being ear­li­er than six months pri­or to the appoint­ed day, are returned to any place of busi­ness on or after the appoint­ed day, the reg­is­tered per­son shall be eli­gi­ble for refund of the duty paid under the exist­ing law where such goods are returned by a per­son, oth­er than a reg­is­tered per­son, to the said place of busi­ness with­in a peri­od of six months from the appoint­ed day and such goods are iden­ti­fi­able to the sat­is­fac­tion of the prop­er officer:

Pro­vid­ed that if the said goods are returned by a reg­is­tered per­son, the return of such goods shall be deemed to be a supply.

• (a) 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;

(b) 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mis­cel­la­neous transitional

pro­vi­sions.

 

 

 

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.

• 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.

• 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.

• 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,
• (a) 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:

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;

(b) 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.

• (a) 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

 

 

 

 

 

 

 

 

 

 

 

1  of 1944.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  of 1944.

 

 

 

 

 

 

 

 

1  of 1944.

 

 

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.

 

 

 

 

 

 

 

 

1  of 1944.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  of 1944.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  of 1944.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32  of 1994.

 

 

32  of 1994.

(b) 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.

• (a) where in pur­suance of an assess­ment or adju­di­ca­tion pro­ceed­ings insti­tut­ed, whether before, on or after the appoint­ed day, under the exist­ing law, any amount of tax, inter­est, fine or penal­ty becomes recov­er­able from the per­son, the same shall, unless recov­ered under the exist­ing law, be recov­ered as an arrear of tax under this Act and the amount so recov­ered shall not be admis­si­ble as input tax cred­it under this Act;

(b) where in pur­suance of an assess­ment or adju­di­ca­tion pro­ceed­ings insti­tut­ed, whether before, on or after the appoint­ed day, under the exist­ing law, any amount of tax, inter­est, fine or penal­ty becomes refund­able to the tax­able per­son, the same shall be refund­ed to him in cash under the said law, 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.

• (a) where any return, fur­nished under the exist­ing law, is revised after the appoint­ed day and if, pur­suant to such revi­sion, any amount is found to be recov­er­able or any amount of 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;

(b) where any return, fur­nished under the exist­ing law, is revised after the appoint­ed day but with­in the time lim­it spec­i­fied for such revi­sion under the exist­ing law and if, pur­suant to such revi­sion, any amount is found to be refund­able or 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.

• 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
• (a) notwith­stand­ing any­thing con­tained in sec­tion 12, no tax shall be payable on goods under this Act to the extent the tax was levi­able on the said goods under the Val­ue Added Tax Act of the State;
• 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;
• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Job work procedure.

• 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.

• 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

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. (1) A reg­is­tered per­son (here­after in this sec­tion referred to as the “prin­ci­pal”) may under inti­ma­tion and sub­ject to such con­di­tions as may be pre­scribed, send any inputs or cap­i­tal goods, with­out pay­ment of tax, to a job work­er for job work and from there sub­se­quent­ly send to anoth­er job work­er and like­wise, and shall,––

• 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;
• 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—

• where the job work­er is reg­is­tered under sec­tion 25; or
• where the prin­ci­pal is engaged in the sup­ply of such goods as may be noti­fied by the

• The respon­si­bil­i­ty for keep­ing prop­er accounts for the inputs or cap­i­tal goods shall lie with the
• Where the inputs sent for job work are not received back by the prin­ci­pal after com­ple­tion of job work or oth­er­wise in accor­dance with the pro­vi­sions of clause (a) of sub-sec­tion (1) or are not sup­plied from the place of busi­ness of the job work­er in accordance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  of  1944 .

 

 

 

with the pro­vi­sions of clause (b) of sub-sec­tion (1) with­in a peri­od of one year of their being sent out, it shall be deemed that such inputs had been sup­plied by the prin­ci­pal to the     job work­er on the day when the said inputs were sent out.

• Where the cap­i­tal goods, oth­er than moulds and dies, jigs and fix­tures, or tools, sent for job work are not received back by the prin­ci­pal in accor­dance with the pro­vi­sions of clause (a) of sub-sec­tion (1) or are not sup­plied from the place of busi­ness of the job work­er in accor­dance with the pro­vi­sions of clause (b) of sub-sec­tion (1) with­in a peri­od of three years of their being sent out, it shall be deemed that such cap­i­tal goods had been sup­plied by the prin­ci­pal to the job work­er on the day when the said cap­i­tal goods were sent
• Notwith­stand­ing any­thing con­tained in sub-sec­tions (1) and (2), any waste and scrap gen­er­at­ed dur­ing the job work may be sup­plied by the job work­er direct­ly from his place of busi­ness on pay­ment of tax, if such job work­er is reg­is­tered, or by the prin­ci­pal, if the job work­er is not

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. Where any document––

• is pro­duced by any per­son under this Act or any oth­er law for the time being in force; or
• has been seized from the cus­tody or con­trol of any per­son under this Act or any oth­er law for the time being in force; or
• has been received from any place out­side India in the course of any pro­ceed­ings under this Act or any oth­er law for the time being in force,

and such doc­u­ment is ten­dered by the pros­e­cu­tion in evi­dence against him or any oth­er per­son who is tried joint­ly with him, the court shall—

• unless the con­trary is proved by such per­son, presume— 
  • the truth of the con­tents of such document;
  • that the sig­na­ture and every oth­er part of such doc­u­ment which pur­ports to be in the hand­writ­ing of any par­tic­u­lar per­son or which the court may rea­son­ably assume to have been signed by, or to be in the hand­writ­ing of, any par­tic­u­lar per­son, is in that person’s hand­writ­ing, and in the case of a doc­u­ment exe­cut­ed or attest­ed, that it was exe­cut­ed or attest­ed by the per­son by whom it pur­ports to have been so exe­cut­ed or attested;
• admit the doc­u­ment in evi­dence notwith­stand­ing that it is not duly stamped, if such doc­u­ment is oth­er­wise admis­si­ble in

145. (1) Notwith­stand­ing any­thing con­tained in any oth­er law for the time being in force,—

• a micro film of a doc­u­ment or the repro­duc­tion of the image or images embod­ied in such micro film (whether enlarged or not); or
• a fac­sim­i­le copy of a doc­u­ment; or
• 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
• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre­sump­tion as to doc­u­ments in cer­tain cases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admis­si­bil­i­ty of   micro films, fac­sim­i­le copies of doc­u­ments and com­put­er print­outs as doc­u­ments and as  evidence.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Com­mon Portal.

 

 

 

Deemed exports.

 

 

 

 

Spe­cial pro­ce­dure for cer­tain processes.

 

 

Goods and ser­vices tax com­pli­ance rating.

 

 

 

 

 

 

 

 

Oblig­a­tion to furnish

infor­ma­tion return.

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.

• 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,— 
  • iden­ti­fy­ing the doc­u­ment con­tain­ing the state­ment and describ­ing the man­ner in which it was produced;
  • 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. The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, noti­fy the Com­mon Goods and Ser­vices Tax Elec­tron­ic Por­tal for facil­i­tat­ing reg­is­tra­tion, pay­ment of tax, fur­nish­ing of returns, com­pu­ta­tion and set­tle­ment of inte­grat­ed tax, elec­tron­ic way bill and for car­ry­ing out such oth­er func­tions and for such pur­pos­es as may be
147. The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, noti­fy cer­tain sup­plies of goods as deemed exports, where goods sup­plied do not leave India, and pay­ment for such sup­plies is received either in Indi­an rupees or in con­vert­ible for­eign exchange, if such goods are man­u­fac­tured in
148. The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, and sub­ject to such con­di­tions and safe­guards as may be pre­scribed, noti­fy cer­tain class­es of reg­is­tered per­sons, and the spe­cial pro­ce­dures to be fol­lowed by such per­sons includ­ing those with regard to reg­is­tra­tion, fur­nish­ing of return, pay­ment of tax and admin­is­tra­tion of such
149. (1) Every reg­is­tered per­son may be assigned a goods and ser­vices tax com­pli­ance rat­ing score by the Gov­ern­ment based on his record of com­pli­ance with the pro­vi­sions of this

• The goods and ser­vices tax com­pli­ance rat­ing score may be deter­mined on the basis of such para­me­ters as may be
• The goods and ser­vices tax com­pli­ance rat­ing score may be updat­ed at peri­od­ic inter­vals and inti­mat­ed to the reg­is­tered per­son and also placed in the pub­lic domain in such man­ner as may be

150. (1) Any per­son, being—

• a tax­able per­son; or
• a local author­i­ty or oth­er pub­lic body or asso­ci­a­tion; or
• 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
• an income tax author­i­ty appoint­ed under the pro­vi­sions of the Income-tax Act, 1961; or
• a bank­ing com­pa­ny with­in the mean­ing of clause (a) of sec­tion 45A of the Reserve Bank of India Act, 1934; or
• 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43  of 1961.

 

 

2  of 1934.

 

 

36  of 2003.

 

 

 

 

 

16  of 1908.

 

18  of 2013.

 

 

59  of 1988.

 

 

 

30  of 2013.

 

 

42  of 1956.

 

 

22  of 1996.

 

 

2  of 1934.

 

 

18  of 2013.

• the Reg­is­trar or Sub-Reg­is­trar appoint­ed under sec­tion 6 of the Reg­is­tra­tion Act, 1908; or
• a Reg­is­trar with­in the mean­ing of the Com­pa­nies Act, 2013; or
• the reg­is­ter­ing author­i­ty empow­ered to reg­is­ter motor vehi­cles under the Motor Vehi­cles Act, 1988; or
• 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
• the recog­nised stock exchange referred to in clause (f) of sec­tion 2 of the Secu­ri­ties Con­tracts (Reg­u­la­tion) Act, 1956; or
• a depos­i­to­ry referred to in clause (e) of sub-sec­tion (1) of sec­tion 2 of the Depos­i­to­ries Act, 1996; or
• an offi­cer of the Reserve Bank of India as con­sti­tut­ed under sec­tion 3 of the Reserve Bank of India Act, 1934; or
• the Goods and Ser­vices Tax Net­work, a com­pa­ny reg­is­tered under the Com­pa­nies Act, 2013; or
• a per­son to whom a Unique Iden­ti­ty Num­ber has been grant­ed under sub-sec­tion (9) of sec­tion 25; or
• 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.

• 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
• Where a per­son who is required to fur­nish infor­ma­tion return has not fur­nished the same with­in the time spec­i­fied in sub-sec­tion (1) or sub-sec­tion (2), the said author­i­ty may serve upon him a notice requir­ing fur­nish­ing of such infor­ma­tion return with­in a peri­od not exceed­ing nine­ty days from the date of ser­vice of the notice and such per­son shall fur­nish the information

151. (1) The Com­mis­sion­er may, if he con­sid­ers that it is nec­es­sary so to do, by noti­fi­ca­tion, direct that sta­tis­tics may be col­lect­ed relat­ing to any mat­ter dealt with by or in con­nec­tion with this

(2) Upon such noti­fi­ca­tion being issued, the Com­mis­sion­er, or any per­son autho­rised by him in this behalf, may call upon the con­cerned per­sons to fur­nish such infor­ma­tion or returns, in such form and man­ner as may be pre­scribed, relat­ing to any mat­ter in respect of which sta­tis­tics is to be collected .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pow­er to collect

sta­tis­tics.

 

 

 

Bar on dis­clo­sure of information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tak­ing assis­tance from an

expert.

Pow­er to take samples.

 

 

Bur­den of proof.

 

Per­sons deemed to be pub­lic ser­vants. Pro­tec­tion of action tak­en under  this Act.

 

 

 

 

 

 

 

Dis­clo­sure of infor­ma­tion by a public

ser­vant.

152. (1) No infor­ma­tion of any indi­vid­ual return or part there­of with respect to any mat­ter giv­en for the pur­pos­es of sec­tion 150 or sec­tion 151 shall, with­out the pre­vi­ous con­sent in writ­ing of the con­cerned per­son or his autho­rised rep­re­sen­ta­tive, be pub­lished in such man­ner so as to enable such par­tic­u­lars to be iden­ti­fied as refer­ring to a par­tic­u­lar per­son and no such infor­ma­tion shall be used for the pur­pose of any pro­ceed­ings under this

• Except for the pur­pos­es of pros­e­cu­tion under this Act or any oth­er Act for the time being in force, no per­son who is not engaged in the col­lec­tion of sta­tis­tics under this Act or com­pi­la­tion or com­put­er­i­sa­tion there­of for the pur­pos­es of this Act, shall be per­mit­ted to see or have access to any infor­ma­tion or any indi­vid­ual return referred to in section
• Noth­ing in this sec­tion shall apply to the pub­li­ca­tion of any infor­ma­tion relat­ing to a class of tax­able per­sons or class of trans­ac­tions, if in the opin­ion of the Com­mis­sion­er, it is desir­able in the pub­lic inter­est to pub­lish such

153. Any offi­cer not below the rank of Assis­tant Com­mis­sion­er may, hav­ing regard to the nature and com­plex­i­ty of the case and the inter­est of rev­enue, take assis­tance of any expert at any stage of scruti­ny, inquiry, inves­ti­ga­tion or any oth­er pro­ceed­ings before
154. The Com­mis­sion­er or an offi­cer autho­rised by him may take sam­ples of goods from the pos­ses­sion of any tax­able per­son, where he con­sid­ers it nec­es­sary, and pro­vide a receipt for any sam­ples so
155. Where any per­son claims that he is eli­gi­ble for input tax cred­it under this Act, the bur­den of prov­ing such claim shall lie on such
156. All per­sons dis­charg­ing func­tions under this Act shall be deemed to be pub­lic ser­vants with­in the mean­ing of sec­tion 21 of the Indi­an Penal
157. (1) No suit, pros­e­cu­tion or oth­er legal pro­ceed­ings shall lie against the Pres­i­dent, State Pres­i­dent, Mem­bers, offi­cers or oth­er employ­ees of the Appel­late Tri­bunal or any oth­er per­son autho­rised by the said Appel­late Tri­bunal for any­thing which is in good faith done or intend­ed to be done under this Act or the rules made

(2) No suit, pros­e­cu­tion or oth­er legal pro­ceed­ings shall lie against any offi­cer appoint­ed or autho­rised under this Act for any­thing which is done or intend­ed to be done in good faith under this Act or the rules made thereunder.

158. (1) All par­tic­u­lars con­tained in any state­ment made, return fur­nished or accounts or doc­u­ments pro­duced in accor­dance with this Act, or in any record of evi­dence giv­en in the course of any pro­ceed­ings under this Act (oth­er than pro­ceed­ings before a crim­i­nal court), or in any record of any pro­ceed­ings under this Act shall, save as pro­vid­ed in sub-sec­tion (3), not be

• Notwith­stand­ing any­thing con­tained in the Indi­an Evi­dence Act, 1872, no court shall, save as oth­er­wise pro­vid­ed in sub-sec­tion (3), require any offi­cer appoint­ed or autho­rised under this Act to pro­duce before it or to give evi­dence before it in respect of par­tic­u­lars referred to in sub-sec­tion (1).
• Noth­ing con­tained in this sec­tion shall apply to the dis­clo­sure of,–– 
  • 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
  • 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
  • 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45  of 1860.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  of 1872.

 

 

 

 

 

 

 

 

 

45  of 1860.

49  of 1988.

 

 

 

• 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
• any par­tic­u­lars to any offi­cer appoint­ed for the pur­pose of audit of tax receipts or refunds of the tax imposed by this Act; or
• 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
• 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
• 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
• 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
• 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
• 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
• 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

159. (1) If the Com­mis­sion­er, or any oth­er offi­cer autho­rised by him in this behalf, is of the opin­ion that it is nec­es­sary or expe­di­ent in the pub­lic inter­est to pub­lish the name of any per­son and any oth­er par­tic­u­lars relat­ing to any pro­ceed­ings or pros­e­cu­tion under this Act in respect of such per­son, it may cause to be pub­lished such name and par­tic­u­lars in such man­ner as it thinks

(2) No pub­li­ca­tion under this sec­tion shall be made in rela­tion to any penal­ty imposed under this Act until the time for pre­sent­ing an appeal to the Appel­late Author­i­ty under sec­tion 107 has expired with­out an appeal hav­ing been pre­sent­ed or the appeal, if pre­sent­ed, has been dis­posed of.

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. (1) No assess­ment, re-assess­ment, adju­di­ca­tion, review, revi­sion, appeal, rec­ti­fi­ca­tion, notice, sum­mons or oth­er pro­ceed­ings done, accept­ed, made, issued, ini­ti­at­ed, or pur­port­ed to have been done, accept­ed, made, issued, ini­ti­at­ed in pur­suance of any of the pro­vi­sions of this Act shall be invalid or deemed to be invalid mere­ly by rea­son of any

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pub­li­ca­tion of infor­ma­tion in respect of per­sons in cer­tain cases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assess­ment pro­ceed­ings, etc., not to be invalid on

cer­tain grounds.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rec­ti­fi­ca­tion of errors

appar­ent on the face of record.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bar on juris­dic­tion of civ­il courts.

 

Levy  of fee.

 

 

Pow­er of

Gov­ern­ment to  make rules.

 

 

 

 

 

 

 

 

 

 

 

 

 

Pow­er to make regulations.

 

Lay­ing of rules, reg­u­la­tions and

noti­fi­ca­tions.

mis­take, defect or omis­sion there­in, if such assess­ment, re-assess­ment, adju­di­ca­tion, review, revi­sion, appeal, rec­ti­fi­ca­tion, notice, sum­mons or oth­er pro­ceed­ings are in sub­stance and effect in con­for­mi­ty with or accord­ing to the intents, pur­pos­es and require­ments of this Act or any exist­ing law.

(2) The ser­vice of any notice, order or com­mu­ni­ca­tion shall not be called in ques­tion, if the notice, order or com­mu­ni­ca­tion, as the case may be, has already been act­ed upon by the per­son to whom it is issued or where such ser­vice has not been called in ques­tion at or in the ear­li­er pro­ceed­ings com­menced, con­tin­ued or finalised pur­suant to such notice, order or communication.

161. With­out prej­u­dice to the pro­vi­sions of sec­tion 160, and notwith­stand­ing any­thing con­tained in any oth­er pro­vi­sions of this Act, any author­i­ty, who has passed or issued any deci­sion or order or notice or cer­tifi­cate or any oth­er doc­u­ment, may rec­ti­fy any error which is appar­ent on the face of record in such deci­sion or order or notice or cer­tifi­cate or any oth­er doc­u­ment, either on its own motion or where such error is brought to its notice by any offi­cer appoint­ed under this Act or an offi­cer appoint­ed under the State Goods and Ser­vices Tax Act or an offi­cer appoint­ed under the Union Ter­ri­to­ry Goods and Ser­vices Tax Act or by the affect­ed per­son with­in a peri­od of three months from the date of issue of such deci­sion or order or notice or cer­tifi­cate or any oth­er doc­u­ment, as the case may be:

Pro­vid­ed 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:

Pro­vid­ed also that where such rec­ti­fi­ca­tion adverse­ly affects any per­son, the prin­ci­ples of nat­ur­al jus­tice shall be fol­lowed by the author­i­ty car­ry­ing out such rectification.

162. Save as pro­vid­ed in sec­tions 117 and 118, no civ­il court shall have juris­dic­tion to deal with or decide any ques­tion aris­ing from or relat­ing to any­thing done or pur­port­ed to be done under this
163. Wher­ev­er a copy of any order or doc­u­ment is to be pro­vid­ed to any per­son on an appli­ca­tion made by him for that pur­pose, there shall be paid such fee as may be
164. (1) The Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, make rules for car­ry­ing out the pro­vi­sions of this

• With­out prej­u­dice to the gen­er­al­i­ty of the pro­vi­sions of sub-sec­tion (1), the Gov­ern­ment may make rules for all or any of the mat­ters which by this Act are required to be, or may be, pre­scribed or in respect of which pro­vi­sions are to be or may be made by
• The pow­er to make rules con­ferred by this sec­tion shall include the pow­er to give ret­ro­spec­tive effect to the rules or any of them from a date not ear­li­er than the date on which the pro­vi­sions of this Act come into
• Any rules made under sub-sec­tion (1) or sub-sec­tion (2) may pro­vide that a con­tra­ven­tion there­of shall be liable to a penal­ty not exceed­ing ten thousand

165. The Board may, by noti­fi­ca­tion, make reg­u­la­tions con­sis­tent with this Act and the rules made there­un­der to car­ry out the pro­vi­sions of this
166. Every rule made by the Gov­ern­ment, every reg­u­la­tion made by the Board and every noti­fi­ca­tion issued by the Gov­ern­ment under this Act, shall be laid, as soon as may be after it is made or issued, before each House of Par­lia­ment, while it is in ses­sion, for a total peri­od of thir­ty days which may be com­prised in one ses­sion or in two or more suc­ces­sive ses­sions, and if, before the expiry of the ses­sion imme­di­ate­ly fol­low­ing the ses­sion or the

 

 

 

suc­ces­sive ses­sions afore­said, both Hous­es agree in mak­ing any mod­i­fi­ca­tion in the rule or reg­u­la­tion or in the noti­fi­ca­tion, as the case may be, or both Hous­es agree that the rule or reg­u­la­tion or the noti­fi­ca­tion should not be made, the rule or reg­u­la­tion or noti­fi­ca­tion, as the case may be, shall there­after have effect only in such mod­i­fied form or be of no effect, as the case may be; so, how­ev­er, that any such mod­i­fi­ca­tion or annul­ment shall be with­out prej­u­dice to the valid­i­ty of any­thing pre­vi­ous­ly done under that rule or reg­u­la­tion or noti­fi­ca­tion, as the case may be.

167. The Com­mis­sion­er may, by noti­fi­ca­tion, direct that sub­ject to such con­di­tions, if any, as may be spec­i­fied in the noti­fi­ca­tion, any pow­er exer­cis­able by any author­i­ty or offi­cer under this Act may be exer­cis­able also by anoth­er author­i­ty or offi­cer as may be spec­i­fied in such
168. (1) The Board may, if it con­sid­ers it nec­es­sary or expe­di­ent so to do for the pur­pose of uni­for­mi­ty in the imple­men­ta­tion of this Act, issue such orders, instruc­tions or direc­tions to the cen­tral tax offi­cers as it may deem fit, and there­upon all such offi­cers and all oth­er per­sons employed in the imple­men­ta­tion of this Act shall observe and fol­low such orders, instruc­tions or

(2) The Com­mis­sion­er spec­i­fied in clause (91) of sec­tion 2, sub-sec­tion (3) of sec­tion 5, clause (b) of sub-sec­tion (9) of sec­tion 25, sub-sec­tions (3) and (4) of sec­tion 35, sub-sec­tion (1) of sec­tion 37, sub-sec­tion (2) of sec­tion 38, sub-sec­tion (6) of sec­tion 39, sub-sec­tion (5) of sec­tion 66, sub-sec­tion (1) of sec­tion 143, sub-sec­tion (1) of sec­tion 151, clause (l) of sub-sec­tion (3) of sec­tion 158 and sec­tion 167 shall mean a Com­mis­sion­er or Joint Sec­re­tary post­ed in the Board and such Com­mis­sion­er or Joint Sec­re­tary shall exer­cise the pow­ers spec­i­fied in the said sec­tions with the approval of the Board.

169. (1) Any deci­sion, order, sum­mons, notice or oth­er com­mu­ni­ca­tion under this Act or the rules made there­un­der shall be served by any one of the fol­low­ing meth­ods, namely:—

• by giv­ing or ten­der­ing it direct­ly or by a mes­sen­ger includ­ing a couri­er to the addressee or the tax­able per­son or to his man­ag­er or autho­rised rep­re­sen­ta­tive or an advo­cate or a tax prac­ti­tion­er hold­ing author­i­ty to appear in the pro­ceed­ings on behalf of the tax­able per­son or to a per­son reg­u­lar­ly employed by him in con­nec­tion with the busi­ness, or to any adult mem­ber of fam­i­ly resid­ing with the tax­able per­son; or

 

 

 

 

 

 

 

 

 

Del­e­ga­tion of powers.

 

 

 

Pow­er to issue instruc­tions or directions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ser­vice of notice in certain

cir­cum­stances.

 

• by reg­is­tered post or speed post or couri­er with acknowl­edge­ment due, to the per­son for whom it is intend­ed or his autho­rised rep­re­sen­ta­tive, if any, at his last known place of busi­ness or res­i­dence; or
• by send­ing a com­mu­ni­ca­tion to his e‑mail address pro­vid­ed at the time of reg­is­tra­tion or as amend­ed from time to time; or
• by mak­ing it avail­able on the com­mon por­tal; or
• by pub­li­ca­tion in a news­pa­per cir­cu­lat­ing in the local­i­ty in which the tax­able per­son or the per­son to whom it is issued is last known to have resided, car­ried on busi­ness or per­son­al­ly worked for gain; or
• if none of the modes afore­said is prac­ti­ca­ble, by affix­ing it in some con­spic­u­ous place at his last known place of busi­ness or res­i­dence and if such mode is not prac­ti­ca­ble for any rea­son, then by affix­ing a copy there­of on the notice board of the office of the con­cerned offi­cer or author­i­ty who or which passed such deci­sion or order or issued such sum­mons or
• Every deci­sion, order, sum­mons, notice or any com­mu­ni­ca­tion shall be deemed to have been served on the date on which it is ten­dered or pub­lished or a copy there­of is affixed in the man­ner pro­vid­ed in sub-sec­tion (1).

 

 

 

 

 

 

 

 

Round­ing off of  tax, etc.

 

 

 

 

 

Anti-

prof­i­teer­ing measure.

 

 

 

 

 

 

 

 

 

 

 

 

Removal of difficulties.

 

 

 

 

 

 

 

 

 

 

 

Amend­ment of Act 32 of 1994.

 

Repeal and saving.

• When such deci­sion, order, sum­mons, notice or any com­mu­ni­ca­tion is sent by reg­is­tered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the peri­od nor­mal­ly tak­en by such post in tran­sit unless the con­trary is

170. The amount of tax, inter­est, penal­ty, fine or any oth­er sum payable, and the amount of refund or any oth­er sum due, under the pro­vi­sions of this Act shall be round­ed off to the near­est rupee and, for this pur­pose, where such amount con­tains a part of a rupee con­sist­ing of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be
171. (1) Any reduc­tion in rate of tax on any sup­ply of goods or ser­vices or the ben­e­fit of input tax cred­it shall be passed on to the recip­i­ent by way of com­men­su­rate reduc­tion in prices.

• The Cen­tral Gov­ern­ment may, on rec­om­men­da­tions of the Coun­cil, by noti­fi­ca­tion, con­sti­tute an Author­i­ty, or empow­er an exist­ing Author­i­ty con­sti­tut­ed under any law for the time being in force, to exam­ine whether input tax cred­its availed by any reg­is­tered per­son or the reduc­tion in the tax rate have actu­al­ly result­ed in a com­men­su­rate reduc­tion in the price of the goods or ser­vices or both sup­plied by
• The Author­i­ty referred to in sub-sec­tion (2) shall exer­cise such pow­ers and dis­charge such func­tions as may be

172. (1) If any dif­fi­cul­ty aris­es in giv­ing effect to any pro­vi­sions of this Act, the Gov­ern­ment may, on the rec­om­men­da­tions of the Coun­cil, by a gen­er­al or a spe­cial order pub­lished in the Offi­cial Gazette, make such pro­vi­sions not incon­sis­tent with the pro­vi­sions of this Act or the rules or reg­u­la­tions made there­un­der, as may be nec­es­sary or expe­di­ent for the pur­pose of remov­ing the said difficulty:

Pro­vid­ed that no such order shall be made after the expiry of a peri­od of three years from the date of com­mence­ment of this Act.

(2) Every order made under this sec­tion shall be laid, as soon as may be, after it is made, before each House of Parliament.

173. Save as oth­er­wise pro­vid­ed in this Act, Chap­ter V of the Finance Act, 1994 shall be

 

174. (1) Save as oth­er­wise pro­vid­ed in this Act, on and from the date of com­mence­ment of this Act, the Cen­tral Excise Act, 1944 (except as respects goods includ­ed in entry 84 of the Union List of the Sev­enth Sched­ule to the Con­sti­tu­tion), the Med­i­c­i­nal and Toi­let Prepa­ra­tions (Excise Duties) Act, 1955, the Addi­tion­al Duties of Excise (Goods of Spe­cial Impor­tance) Act, 1957, the Addi­tion­al Duties of Excise (Tex­tiles and Tex­tile Arti­cles) Act, 1978, and the Cen­tral Excise Tar­iff Act, 1985 (here­after referred to as the repealed Acts) are hereby

• The repeal of the said Acts and the amend­ment of the Finance Act, 1994 (here­after referred to as “such amend­ment” or “amend­ed Act”, as the case may be) to the extent men­tioned in the sub-sec­tion (1) or sec­tion 173 shall not— 
  • revive any­thing not in force or exist­ing at the time of such amend­ment or repeal; or
  • affect the pre­vi­ous oper­a­tion of the amend­ed Act or repealed Acts and orders or any­thing duly done or suf­fered there­un­der; or
  • affect any right, priv­i­lege, oblig­a­tion, or lia­bil­i­ty acquired, accrued or incurred under the amend­ed Act or repealed Acts or orders under such repealed or amend­ed Acts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  of 1944.

 

16  of 1955.

58  of 1957.

40  of 1978.

5  of 1986.

 

32  of 1994.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10  of 1897.

Pro­vid­ed that any tax exemp­tion grant­ed as an incen­tive against invest­ment through a noti­fi­ca­tion shall not con­tin­ue as priv­i­lege if the said noti­fi­ca­tion is rescind­ed on or after the appoint­ed day; or

• affect any duty, tax, sur­charge, fine, penal­ty, inter­est as are due or may become due or any for­fei­ture or pun­ish­ment incurred or inflict­ed in respect of any offence or vio­la­tion com­mit­ted against the pro­vi­sions of the amend­ed Act or repealed Acts; or
• affect any inves­ti­ga­tion, inquiry, ver­i­fi­ca­tion (includ­ing scruti­ny and audit), assess­ment pro­ceed­ings, adju­di­ca­tion and any oth­er legal pro­ceed­ings or recov­ery of arrears or rem­e­dy in respect of any such duty, tax, sur­charge, penal­ty, fine, inter­est, right, priv­i­lege, oblig­a­tion, lia­bil­i­ty, for­fei­ture or pun­ish­ment, as afore­said, and any such inves­ti­ga­tion, inquiry, ver­i­fi­ca­tion (includ­ing scruti­ny and audit), assess­ment pro­ceed­ings, adju­di­ca­tion and oth­er legal pro­ceed­ings or recov­ery of arrears or rem­e­dy may be insti­tut­ed, con­tin­ued or enforced, and any such tax, sur­charge, penal­ty, fine, inter­est, for­fei­ture or pun­ish­ment may be levied or imposed as if these Acts had not been so amend­ed or repealed;
• affect any pro­ceed­ings includ­ing that relat­ing to an appeal, review or ref­er­ence, insti­tut­ed before on, or after the appoint­ed day under the said amend­ed Act or repealed Acts and such pro­ceed­ings shall be con­tin­ued under the said amend­ed Act or repealed Acts as if this Act had not come into force and the said Acts had not been amend­ed or repealed.

• The men­tion of the par­tic­u­lar mat­ters referred to in sub-sec­tions (1) and (2) shall not be held to prej­u­dice or affect the gen­er­al appli­ca­tion of sec­tion 6 of the Gen­er­al Claus­es Act, 1897 with regard to the effect of

 

 

 

 

 

SCHEDULE I

[See sec­tion 7]

ACTIVITIES TO BE TREATED AS SUPPLY  EVEN IF MADE WITHOUT   CONSIDERATION

1. Per­ma­nent trans­fer or dis­pos­al of busi­ness assets where input tax cred­it has been availed on such
2. Sup­ply of goods or ser­vices or both between relat­ed per­sons or between dis­tinct per­sons as spec­i­fied in sec­tion 25, when made in the course or fur­ther­ance of business:

Pro­vid­ed that gifts not exceed­ing fifty thou­sand rupees in val­ue in a finan­cial year by an employ­er to an employ­ee shall not be treat­ed as sup­ply of goods or ser­vices or both.

3. Sup­ply of goods— 
   • by a prin­ci­pal to his agent where the agent under­takes to sup­ply such goods on behalf of the prin­ci­pal; or
   • by an agent to his prin­ci­pal where the agent under­takes to receive such goods on behalf of the
4. Import of ser­vices by a tax­able per­son from a relat­ed per­son or from any of his oth­er estab­lish­ments out­side India, in the course or fur­ther­ance of

 

 

 

 

 

SCHEDULE II

[See sec­tion 7]

ACTIVITIES TO BE TREATED  AS SUPPLY  OF GOODS OR SUPPLY OF   SERVICES

1. Trans­fer
   • any trans­fer of the title in goods is a sup­ply of goods;
   • any trans­fer of right in goods or of undi­vid­ed share in goods with­out the trans­fer of title there­of, is a sup­ply of services;
   • any trans­fer of title in goods under an agree­ment which stip­u­lates that prop­er­ty in goods shall pass at a future date upon pay­ment of full con­sid­er­a­tion as agreed, is a sup­ply of
2. Land and Building 
   • any lease, ten­an­cy, ease­ment, licence to occu­py land is a sup­ply of services;
   • any lease or let­ting out of the build­ing includ­ing a com­mer­cial, indus­tri­al or res­i­den­tial com­plex for busi­ness or com­merce, either whol­ly or part­ly, is a sup­ply of services.
3. Treat­ment or process

Any treat­ment or process which is applied to anoth­er per­son­’s goods is a sup­ply of services.

4. Trans­fer of busi­ness assets 
   • where goods form­ing part of the assets of a busi­ness are trans­ferred or dis­posed of by or under the direc­tions of the per­son car­ry­ing on the busi­ness so as no longer to form part of those assets, whether or not for a con­sid­er­a­tion, such trans­fer or dis­pos­al is a sup­ply of goods by the person;
   • where, by or under the direc­tion of a per­son car­ry­ing on a busi­ness, goods held or used for the pur­pos­es of the busi­ness are put to any pri­vate use or are used, or made avail­able to any per­son for use, for any pur­pose oth­er than a pur­pose of the busi­ness, whether or not for a con­sid­er­a­tion, the usage or mak­ing avail­able of such goods is a sup­ply of services;
   • where any per­son ceas­es to be a tax­able per­son, any goods form­ing part of the assets of any busi­ness car­ried on by him shall be deemed to be sup­plied by him in the course or fur­ther­ance of his busi­ness imme­di­ate­ly before he ceas­es to be a tax­able per­son, unless— 
     • the busi­ness is trans­ferred as a going con­cern to anoth­er per­son; or
     • the busi­ness is car­ried on by a per­son­al rep­re­sen­ta­tive who is deemed to be a taxable

5. Sup­ply of services

The fol­low­ing shall be treat­ed as sup­ply of ser­vices, namely:—

• rent­ing of immov­able property;
• con­struc­tion of a com­plex, build­ing, civ­il struc­ture or a part there­of, includ­ing a com­plex or build­ing intend­ed for sale to a buy­er, whol­ly or part­ly, except where the entire con­sid­er­a­tion has been received after issuance of com­ple­tion cer­tifi­cate, where required, by the com­pe­tent author­i­ty or after its first occu­pa­tion, whichev­er is

 

 

 

Expla­na­tion.—For the pur­pos­es of this  clause—

• the expres­sion “com­pe­tent author­i­ty” means the Gov­ern­ment or any author­i­ty autho­rised to issue com­ple­tion cer­tifi­cate under any law for the time being in force and in case of non-require­ment of such cer­tifi­cate from such author­i­ty, from any of the fol­low­ing, namely:— 
  • an archi­tect reg­is­tered with the Coun­cil of Archi­tec­ture con­sti­tut­ed under the Archi­tects Act, 1972; or
  • a char­tered engi­neer reg­is­tered with the Insti­tu­tion of Engi­neers (India); or
  • a licensed sur­vey­or of the respec­tive local body of the city or town or vil­lage or devel­op­ment or plan­ning authority;
• the expres­sion “con­struc­tion” includes addi­tions, alter­ations, replace­ments or remod­el­ling of any exist­ing civ­il structure; 
  • tem­po­rary trans­fer or per­mit­ting the use or enjoy­ment of any intel­lec­tu­al prop­er­ty right;
  • devel­op­ment, design, pro­gram­ming, cus­tomi­sa­tion, adap­ta­tion, upgra­da­tion, enhance­ment, imple­men­ta­tion of infor­ma­tion tech­nol­o­gy software;
  • agree­ing to the oblig­a­tion to refrain from an act, or to tol­er­ate an act or a sit­u­a­tion, or to do an act; and
  • trans­fer of the right to use any goods for any pur­pose (whether or not for a spec­i­fied peri­od) for cash, deferred pay­ment or oth­er valuable

6. Com­pos­ite supply

The fol­low­ing com­pos­ite sup­plies shall be treat­ed as a sup­ply of ser­vices, namely:—

• works con­tract as defined in clause (119) of sec­tion 2; and
• sup­ply, by way of or as part of any ser­vice or in any oth­er man­ner what­so­ev­er, of goods, being food or any oth­er arti­cle for human con­sump­tion or any drink (oth­er than alco­holic liquor for human con­sump­tion), where such sup­ply or ser­vice is for cash, deferred pay­ment or oth­er valuable

7. Sup­ply of Goods

The fol­low­ing shall be treat­ed as sup­ply of goods, namely:—

Sup­ply of goods by any unin­cor­po­rat­ed asso­ci­a­tion or body of per­sons to a mem­ber there­of for cash, deferred pay­ment or oth­er valu­able consideration.

 

 

 

 

 

 

 

 

20  of 1972.

 

 

 

 

 

SCHEDULE III

[See sec­tion 7]

ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR  A SUPPLY  OF SERVICES

1. Ser­vices by an employ­ee to the employ­er in the course of or in rela­tion to his
2. Ser­vices by any court or Tri­bunal estab­lished under any law for the time being in

force.

3. (a) the func­tions per­formed by the Mem­bers of Par­lia­ment, Mem­bers of State

Leg­is­la­ture, Mem­bers of Pan­chay­ats, Mem­bers of Munic­i­pal­i­ties and Mem­bers of oth­er local authorities;

• the duties per­formed by any per­son who holds any post in pur­suance of the pro­vi­sions of the Con­sti­tu­tion in that capac­i­ty; or
• the duties per­formed by any per­son as a Chair­per­son or a Mem­ber or a Direc­tor in a body estab­lished by the Cen­tral Gov­ern­ment or a State Gov­ern­ment or local author­i­ty and who is not deemed as an employ­ee before the com­mence­ment of this

4. Ser­vices of funer­al, bur­ial, cre­ma­to­ri­um or mor­tu­ary includ­ing trans­porta­tion of the
5. Sale of land and, sub­ject to clause (b) of para­graph 5 of Sched­ule II, sale of
6. Action­able claims, oth­er than lot­tery, bet­ting and

Expla­na­tion.—For the pur­pos­es of para­graph 2, the term “court” includes Dis­trict Court, High Court and Supreme Court.

 

————

 

 

1. G. NARAYANA RAJU

Sec­re­tary to the Govt. of India.

 

 

 

 

 

 

 

 

 

 

 

 

 

UPLOADED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD,   NEW DELHI–110002

AND  PUBLISHED  BY  THE  CONTROLLER  OF   PUBLICATIONS, DELHI–110054.

 

 

 

GMGIPMRND—503GI—12–04-2017.