Trannlitation

SCC Online Web Edition, Copyright © 2021
Page 1 Tuesday, September 28, 2021

Printed For: Kamran Ahmad, Jamia Millia Islamia
SCC Online Web Edition: http://www.scconline.com
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The
Central Goods and Services Tax Act, 20171
(Central Goods and Services Tax Act, 2017)
[Act 12 of 2017 as amended up to Act 13 of 2021]
[12th April, 2017]
CONTENTS
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement
2. Definitions
CHAPTER II
ADMINISTRATION
3. Officers under this Act
4. Appointment of officers
5. Powers of officers
6. Authorisation of officers of State tax or Union territory tax as proper officer in certain
circumstances
CHAPTER III
LEVY AND COLLECTION OF TAX
7. Scope of supply
8. Tax liability on composite and mixed supplies
9. Levy and collection
10. Composition levy
11. Power to grant exemption from tax
CHAPTER IV
TIME AND VALUE OF SUPPLY
12. Time of supply of goods
13. Time of supply of services
14. Change in rate of tax in respect of supply of goods or services

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15. Value of taxable supply
CHAPTER V
INPUT TAX CREDIT
16. Eligibility and conditions for taking input tax credit
17. Apportionment of credit and blocked credits
18. Availability of credit in special circumstances
19. Taking input tax credit in respect of inputs and capital goods sent for job work
20. Manner of distribution of credit by Input Service Distributor
21. Manner of recovery of credit distributed in excess
CHAPTER VI
REGISTRATION
22. Persons liable for registration
23. Persons not liable for registration
24. Compulsory registration in certain cases
25. Procedure for registration
26. Deemed registration
27. Special provisions relating to casual taxable person and non-resident taxable
person
28. Amendment of registration
29. Cancellation [or suspension] of registration
30. Revocation of cancellation of registration
CHAPTER VII
TAX INVOICE, CREDIT AND DEBIT NOTES
31. Tax invoice
31-A. Facility of digital payment to recipient
32. Prohibition of unauthorised collection of tax
33. Amount of tax to be indicated in tax invoice and other documents
34. Credit and debit notes
CHAPTER VIII
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ACCOUNTS AND RECORDS
35. Accounts and other records
36. Period of retention of accounts
CHAPTER IX
RETURNS
37. Furnishing details of outward supplies
38. Furnishing details of inward supplies—
39. Furnishing of returns
40. First return
41. Claim of input tax credit and provisional acceptance thereof
42. Matching, reversal and reclaim of input tax credit
43. Matching, reversal and reclaim of reduction in output tax liability
43-A. Procedure for furnishing return and availing input tax credit
44. Annual return
45. Final return
46. Notice to return defaulters
47. Levy of late fee
48. Goods and services tax practitioners
CHAPTER X
PAYMENT OF TAX
49. Payment of tax, interest, penalty and other amounts
49-A. Utilisation of input tax credit subject to certain conditions
49-B. Order of utilisation of input tax credit
50. Interest on delayed payment of tax
51. Tax deduction at source
52. Collection of tax at source
53. Transfer of input tax credit
53-A. Transfer of certain amounts
CHAPTER XI
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REFUNDS
54. Refund of tax
55. Refund in certain cases
56. Interest on delayed refunds
57. Consumer Welfare Fund
58. Utilisation of Fund
CHAPTER XII
ASSESSMENT
59. Self-assessment
60. Provisional assessment
61. Scrutiny of returns
62. Assessment of non-filers of returns
63. Assessment of unregistered persons
64. Summary assessment in certain special cases
CHAPTER XIII
AUDIT
65. Audit by tax authorities
66. Special audit
CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
67. Power of inspection, search and seizure
68. Inspection of goods in movement
69. Power to arrest
70. Power to summon persons to give evidence and produce documents
71. Access to business premises
72. Officers to assist proper officers
CHAPTER XV
DEMANDS AND RECOVERY
73. Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilised for any reason other than fraud or any wilful-
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misstatement or suppression of facts
credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or
suppression of facts
75. General provisions relating to determination of tax
76. Tax collected but not paid to Government
77. Tax wrongfully collected and paid to Central Government or State Government
78. Initiation of recovery proceedings
79. Recovery of tax
80. Payment of tax and other amount in instalments
81. Transfer of property to be void in certain cases
82. Tax to be first charge on property
83. Provisional attachment to protect revenue in certain cases
84. Continuation and validation of certain recovery proceedings
CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
85. Liability in case of transfer of business
86. Liability of agent and principal
87. Liability in case of amalgamation or merger of companies
88. Liability in case of company in liquidation
89. Liability of directors of private company
90. Liability of partners of firm to pay tax
91. Liability of guardians, trustees, etc
92.
93. Special provisions regarding liability to pay tax, interest or penalty in certain cases
94. Liability in other cases
CHAPTER XVII
ADVANCE RULING
95. Definitions
96. Authority for advance ruling

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97. Application for advance ruling
98. Procedure on receipt of application
99. Appellate Authority for Advance Ruling
100. Appeal to Appellate Authority
101. Orders of Appellate Authority
101-A. Constitution of National Appellate Authority for Advance Ruling
101-B. Appeal to National Appellate Authority
101-C. Order of National Appellate Authority
102. Rectification of advance ruling
103. Applicability of advance ruling
104. Advance ruling to be void in certain circumstances
105. [Powers of Authority, Appellate Authority and National Appellate Authority
106. [Procedure of Authority, Appellate Authority and National Appellate Authority]
CHAPTER XVIII
APPEALS AND REVISION
107. Appeals to Appellate Authority
108. Powers of Revisional Authority
109. Constitution of Appellate Tribunal and Benches thereof
110. President and Members of Appellate Tribunal, their qualification, appointment,

conditions of service, etc
111. Procedure before Appellate Tribunal
112. Appeals to Appellate Tribunal
113. Orders of Appellate Tribunal
114. Financial and administrative powers of President
115. Interest on refund of amount paid for admission of appeal
116. Appearance by authorised representative
117. Appeal to High Court
118. Appeal to Supreme Court
119. Sums due to be paid notwithstanding appeal, etc
120. Appeal not to be filed in certain cases

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121. Non-appealable decisions and orders
CHAPTER XIX
OFFENCES AND PENALTIES
122. Penalty for certain offences
123. Penalty for failure to furnish information return
124. Fine for failure to furnish statistics
125. General penalty
126. General disciplines related to penalty
127. Power to impose penalty in certain cases
128. Power to waive penalty or fee or both
129. Detention, seizure and release of goods and conveyances in transit
130. Confiscation of goods or conveyances and levy of penalty
131. Confiscation or penalty not to interfere with other punishments
132. Punishment for certain offences
133. Liability of officers and certain other persons
134.
135. Presumption of culpable mental state
136. Relevancy of statements under certain circumstances
137. Offences by companies
138. Compounding of offences
CHAPTER XX
TRANSITIONAL PROVISIONS
139. Migration of existing taxpayers
140. Transitional arrangements for input tax credit
141. Transitional provisions relating to job work
142. Miscellaneous transitional provisions
CHAPTER XXI
MISCELLANEOUS
143. Job work procedure

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144. Presumption as to documents in certain cases
145. Admissibility of micro films, facsimile copies of documents and computer

printouts as documents and as evidence
146. Common Portal
147. Deemed exports
148. Special procedure for certain processes
149. Goods and services tax compliance rating
150. Obligation to furnish information return
151. Power to call for information
152. Bar on disclosure of information
153. Taking assistance from an expert
154. Power to take samples
155. Burden of proof
156. Persons deemed to be public servants. Protection of action taken under this Act
157. Disclosure of information by a public servant
158.
159. Publication of information in respect of persons in certain cases
160. Assessment proceedings, etc., not to be invalid on certain grounds
161. Rectification of errors apparent on the face of record
162. Bar on jurisdiction of civil courts
163. Levy of fee
164. Power of Government to make rules
165. Power to make regulations
166. Laying of rules, regulations and notifications
167. Delegation of powers
168. Power to issue instructions or directions
168-A. Power of Government to extend time limit in special circumstances
169. Service of notice in certain circumstances
170. Rounding off of tax, etc

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171. Anti-profiteering measure
172. Removal of difficulties
173. Amendment of Act 32 of 1994
174. Repeal and saving
SCHEDULE I
SCHEDULE II
SCHEDULE III
———
Central Goods and Services Tax Act, 2017

[Act 12 of 2017 as amended up to Act 38 of 2020] [12th April, 2017]
An Act 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. Short title, extent and commencement.—(1) This Act may be called the Central
Goods and Services Tax Act, 2017.
(2) It extends to the whole of India 2 [* * *].
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act
and any reference in any such provision to the commencement of this Act shall be
construed as a reference to the coming into force of that provision.
———
NOTIFICATIONS
(1)
Ministry of Finance, Department of Revenue, Central Board of Excise and Customs,
Noti. No. G.S.R. 605(E), dated June 19th, 2017 [No. 2/2017-Central Tax], published
in the Gazette of India, Extra., Part II, Section 3(i), dated 19th June, 2017, p. 3, No.
499
G.S.R. 605(E).—In exercise of the powers conferred by sub-section (3) of Section
1 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central
Government hereby appoints the 22nd day of June, 2017, as the date on which the
provisions of Sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25. 26, 27, 28, 29, 30, 139, 146
and 164 of the said Act shall come into force.
———
(2)
Ministry of Finance, Noti. No. G.S.R. 658(E), dated June 28, 2017, published in the
Gazette of India, Extra., Part II, Section 3(i), dated 28th June, 2017, p. 2, No. 541
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1 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central
Government hereby appoints the 1st day of July, 2017, as the date on which the
provisions of Sections 6 to 9, 11 to 21, 31 to 41, 42 except the proviso to sub-section
(9) of Section 42, 43 except the proviso to sub-section (9) of Section 43, 44 to 50, 53
to 138, 140 to 145, 147 to 163, 165 to 174 of the said Act, shall come into force.
———
(3)
Ministry of Finance, Noti. No. G.S.R. 869(E), dated September 13, 2018, published in
the Gazette of India, Extra., Part II, Section 3(i), dated 13th September, 2018, p. 23,
No. 635
1 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred
to as the said Act), the Central Government hereby appoints the 1st day of October,
2018, as the date on which the provisions of Section 52 of the said Act shall come into
force.
2. Definitions.—In this Act, unless the context otherwise requires,—
(1) “actionable claim” shall have the same meaning as assigned to it in Section 3 of
the Transfer of Property Act, 1882 (4 of 1882);
(2) “address of delivery” means the address of the recipient of goods or services or
both indicated on the tax invoice issued by a registered person for delivery of such
goods or services or both;
(3) “address on record” means the address of the recipient as available in the
records of the supplier;
(4) “adjudicating authority” means any authority, appointed or authorised to pass
any order or decision under this Act, but does not include the 3 [Central Board of
Indirect Taxes and Customs], the Revisional Authority, the Authority for Advance
Ruling, the Appellate Authority for Advance Ruling, 4 [the National Appellate Authority
for Advance Ruling,] 5 [the Appellate Authority, the Appellate Tribunal and the
Authority referred to in sub-section (2) of Section 171];
(5) “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;
(6) “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;
(7) “agriculturist” means an individual or a Hindu Undivided Family who undertakes
cultivation of land—
(a) by own labour, or
(b) by the labour of family, or
(c) 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;
(8) “Appellate Authority” means an authority appointed or authorised to hear
appeals as referred to in Section 107;
(9) “Appellate Tribunal” means the Goods and Services Tax Appellate Tribunal
constituted under Section 109;
(10) “appointed day” means the date on which the provisions of this Act shall come
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into force;
(11) “assessment” means determination of tax liability under this Act and includes
self-assessment, re-assessment, provisional assessment, summary assessment and
best judgment assessment;
(12) “associated enterprises” shall have the same meaning as assigned to it in
Section 92-A of the Income-tax Act, 1961 (43 of 1961);
(13) “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;
(14) “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;
(15) “authorised representative” means the representative as referred to in Section
116;
(16) “Board” means the 6 [Central Board of Indirect Taxes and Customs] constituted
under the Central Boards of Revenue Act, 1963 (54 of 1963);
(17) “business” includes—
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or
any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-
clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not
there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in
connection with commencement or closure of business;
(e) 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;
(f) admission, for a consideration, of persons to any premises;
(g) 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;
7 [(h) activities of a race club including by way of totalisator or a license to book
maker or activities of a licensed book maker in such club; and;]

(i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public
authorities;
8 [* * *]
(19) “capital goods” means goods, the value of which is capitalised in the books of
account of the person claiming the input tax credit and which are used or intended to
be used in the course or furtherance of business;
(20) “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;
(21) “central tax” means the central goods and services tax levied under Section 9;
(22) “cess” shall have the same meaning as assigned to it in the Goods and
Services Tax (Compensation to States) Act;
(23) “chartered accountant” means a chartered accountant as defined in clause (b)
of sub-section (1) of Section 2 of the Chartered Accountants Act, 1949 (38 of 1949);
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(24) “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;
(25) “Commissioner in the Board” means the Commissioner referred to in Section
168;
(26) “common portal” means the common goods and services tax electronic portal
referred to in Section 146;
(27) “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;
(28) “company secretary” means a company secretary as defined in clause (c) of
sub-section (1) of Section 2 of the Company Secretaries Act, 1980 (56 of 1980);
(29) “competent authority” means such authority as may be notified by the
Government;
(30) “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;
(31) “consideration” in relation to the supply of goods or services or both includes—
(a) 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;
(b) the monetary value of any act or forbearance, in respect of, in response to, or
for the inducement of, the supply of goods or services or both, whether by the
recipient or by any other person but shall not include any subsidy given by the
Central Government or a State Government:
Provided that a deposit given in respect of the supply of goods or services
or both shall not be considered as payment made for such supply unless the
supplier applies such deposit as consideration for the said supply;
(32) “continuous supply of goods” means a supply of goods which is provided, or
agreed to be provided, continuously or on recurrent basis, under a contract, whether or
not by means of a wire, cable, pipeline or other conduit, and for which the supplier
invoices the recipient on a regular or periodic basis and includes supply of such goods
as the Government may, subject to such conditions, as it may, by notification, specify;
(33) “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;
(34) “conveyance” includes a vessel, an aircraft and a vehicle;
(35) “cost accountant” means a cost accountant as defined in 9 [clause (b)] of sub-
section (1) of Section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959);
(36) “Council” means the Goods and Services Tax Council established under Article
279-A of the Constitution;
(37) “credit note” means a document issued by a registered person under sub-
section (1) of Section 34;
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(38) “debit note” means a document issued by a registered person under sub-
(39) “deemed exports” means such supplies of goods as may be notified under
Section 147;
(40) “designated authority” means such authority as may be notified by the Board;
(41) “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 (21 of
2000);
(42) “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;
(43) “electronic cash ledger” means the electronic cash ledger referred to in sub-
(44) “electronic commerce” means the supply of goods or services or both,
including digital products over digital or electronic network;
(45) “electronic commerce operator” means any person who owns, operates or
manages digital or electronic facility or platform for electronic commerce;
(46) “electronic credit ledger” means the electronic credit ledger referred to in sub-
(47) “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;
(48) “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;
(49) “family” means,—
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are
wholly or mainly dependent on the said person;
(50) “fixed establishment” means a place (other than the registered place of
business) which is characterised by a sufficient degree of permanence and suitable
structure in terms of human and technical resources to supply services, or to receive
and use services for its own needs;
(51) “Fund” means the Consumer Welfare Fund established under Section 57;
(52) “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;
(53) “Government” means the Central Government;
(54) “Goods and Services Tax (Compensation to States) Act” means the Goods and
Services Tax (Compensation to States) Act, 2017;
(55) “goods and services tax practitioner” means any person who has been
approved under Section 48 to act as such practitioner;
(56) “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 (80 of 1976), and the air space above its territory and territorial
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waters;
(57) “Integrated Goods and Services Tax Act” means the Integrated Goods and
Services Tax Act, 2017;
(58) “integrated tax” means the integrated goods and services tax levied under the
Integrated Goods and Services Tax Act;
(59) “input” means any goods other than capital goods used or intended to be used
by a supplier in the course or furtherance of business;
(60) “input service” means any service used or intended to be used by a supplier in
the course or furtherance of business;
(61) “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;
(62) “input tax” in relation to a registered person, means the central tax, State tax,
integrated tax or Union territory tax charged on any supply of goods or services or
both made to him and includes—
(a) the integrated goods and services tax charged on import of goods;
(b) the tax payable under the provisions of sub-sections (3) and (4) of Section
9;
(c) the tax payable under the provisions of sub-sections (3) and (4) of Section 5
of the Integrated Goods and Services Tax Act;
(d) 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
(e) the tax payable under the provisions of sub-sections (3) and (4) of Section 7
of the Union Territory Goods and Services Tax Act,
but does not include the tax paid under the composition levy;
(63) “input tax credit” means the credit of input tax;
(64) “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;
(65) “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;
(66) “invoice” or “tax invoice” means the tax invoice referred to in Section 31;
(67) “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;
(68) “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;
(69) “local authority” means—
(a) a “Panchayat” as defined in clause (d) of Article 243 of the Constitution;
(b) a “Municipality” as defined in clause (e) of Article 243-P of the Constitution;
(c) 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;
(d) a Cantonment Board as defined in Section 3 of the Cantonments Act, 2006
(41 of 2006);
(e) a Regional Council or a District Council constituted under the Sixth Schedule
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to the Constitution;
(f) a Development Board constituted under Article 371 10 [and Article 371-J] of
the Constitution; or
(g) a Regional Council constituted under Article 371-A of the Constitution;
(70) “location of the recipient of services” means,—
(a) where a supply is received at a place of business for which the registration
has been obtained, the location of such place of business;
(b) 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;
(c) 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
(d) in absence of such places, the location of the usual place of residence of the
recipient;
(71) “location of the supplier of services” means,—
(a) where a supply is made from a place of business for which the registration
has been obtained, the location of such place of business;
(b) 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;
(c) 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
(d) in absence of such places, the location of the usual place of residence of the
supplier;
(72) “manufacture” means processing of raw material or inputs in any manner that
results in emergence of a new product having a distinct name, character and use and
the term “manufacturer” shall be construed accordingly;
(73) “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;
(74) “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 supply.
Illustration.—A supply of a package consisting of canned foods, sweets, chocolates,
cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a
mixed supply. Each of these items can be supplied separately and is not dependent on
any other. It shall not be a mixed supply if these items are supplied separately;
(75) “money” means the Indian legal tender or any foreign currency, cheque,
promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque,
money order, postal or electronic remittance or any other instrument recognised by
the Reserve Bank of India when used as a consideration to settle an obligation or
exchange with Indian legal tender of another denomination but shall not include any
currency that is held for its numismatic value;
(76) “motor vehicle” shall have the same meaning as assigned to it in clause (28)
of Section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(77) “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
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India;
(78) “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;
(79) “non-taxable territory” means the territory which is outside the taxable
territory;
(80) “notification” means a notification published in the Official Gazette and the
expressions “notify” and “notified” shall be construed accordingly;
(81) “other territory” includes territories other than those comprising in a State and
those referred to in sub-clauses (a) to (e) of clause (114);
(82) “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;
(83) “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;
(84) “person” includes—
(a) an individual;
(b) a Hindu Undivided Family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(f) an association of persons or a body of individuals, whether incorporated or
not, in India or outside India;
(g) 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 (18 of 2013);
(h) any body corporate incorporated by or under the laws of a country outside
India;
(i) a co-operative society registered under any law relating to co-operative
societies;
(j) a local authority;
(k) Central Government or a State Government;
(l) society as defined under the Societies Registration Act, 1860 (21 of 1860);
(m) trust; and
(n) every artificial juridical person, not falling within any of the above;
(85) “place of business” includes—
(a) 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
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by
whatever name called;
(86) “place of supply” means the place of supply as referred to in Chapter V of the
Integrated Goods and Services Tax Act;
(87) “prescribed” means prescribed by rules made under this Act on the
recommendations of the Council;
(88) “principal” means a person on whose behalf an agent carries on the business
of supply or receipt of goods or services or both;
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(89) “principal place of business” means the place of business specified as the
principal place of business in the certificate of registration;
(90) “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;
(91) “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;
(92) “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;
(93) “recipient” of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or services or both,
the person who is liable to pay that consideration;
(b) where no consideration is payable for the supply of goods, the person to
whom the goods are delivered or made available, or to whom possession or
use of the goods is given or made available; and
(c) where no consideration is payable for the supply of a service, the person to
whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a
reference to the recipient of the supply and shall include an agent acting as such on
behalf of the recipient in relation to the goods or services or both supplied;
(94) “registered person” means a person who is registered under Section 25 but
does not include a person having a Unique Identity Number;
(95) “regulations” means the regulations made by the Board under this Act on the
recommendations of the Council;
(96) “removal” in relation to goods, means—
(a) despatch of the goods for delivery by the supplier thereof or by any other
person acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any other person acting
on behalf of such recipient;
(97) “return” means any return prescribed or otherwise required to be furnished by
or under this Act or the rules made thereunder;
(98) “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;
(99) “Revisional Authority” means an authority appointed or authorised for revision
of decision or orders as referred to in Section 108;
(100) “Schedule” means a Schedule appended to this Act;
(101) “securities” shall have the same meaning as assigned to it in clause (h) of
Section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(102) “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;
11 [Explanation.—For the removal of doubts, it is hereby clarified that the expression
“services” includes facilitating or arranging transactions in securities;]

(103) “State” includes a Union territory with Legislature;
(104) “State tax” means the tax levied under any State Goods and Services Tax
Act;
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(105) “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;
(106) “tax period” means the period for which the return is required to be
furnished;
(107) “taxable person” means a person who is registered or liable to be registered
under Section 22 or Section 24;
(108) “taxable supply” means a supply of goods or services or both which is
leviable to tax under this Act;
(109) “taxable territory” means the territory to which the provisions of this Act
apply;
(110) “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;
(111) “the State Goods and Services Tax Act” means the respective State Goods
and Services Tax Act, 2017;
(112) “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 tax,
integrated tax and cess;
(113) “usual place of residence” means—
(a) in case of an individual, the place where he ordinarily resides;
(b) in other cases, the place where the person is incorporated or otherwise
legally constituted;
(114) “Union territory” means the territory of—
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
12 [(c) Dadra and Nagar Haveli and Daman and Diu;
(d) Ladakh;]
(e) Chandigarh; and
(f) other territory.
Explanation.—For the purposes of this Act, each of the territories specified in sub-
clauses (a) to (f) shall be considered to be a separate Union territory;
(115) “Union territory tax” means the Union territory goods and services tax levied
under the Union Territory Goods and Services Tax Act;
(116) “Union Territory Goods and Services Tax Act” means the Union Territory
Goods and Services Tax Act, 2017;
(117) “valid return” means a return furnished under sub-section (1) of Section 39
on which self-assessed tax has been paid in full;
(118) “voucher” means an instrument where there is an obligation to accept it as
consideration or part consideration for a supply of goods or services or both and where
the goods or services or both to be supplied or the identities of their potential
suppliers are either indicated on the instrument itself or in related documentation,
including the terms and conditions of use of such instrument;
(119) “works contract” means a contract for building, construction, fabrication,
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completion, erection, installation, fitting out, improvement, modification, repair,
maintenance, renovation, alteration or commissioning of any immovable property
wherein transfer of property in goods (whether as goods or in some other form) is
involved in the execution of such contract;
(120) words and expressions used and not defined in this Act but defined in the
Integrated Goods and Services Tax Act, the 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;
(121) 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 State.
Chapter II
ADMINISTRATION
3. Officers under this Act.—The Government shall, by notification, appoint the
following classes of officers for the purposes of this Act, namely:—
(a) Principal Chief Commissioners of Central Tax or Principal Directors General of
Central Tax,
(b) Chief Commissioners of Central Tax or Directors General of Central Tax,
(c) Principal Commissioners of Central Tax or Principal Additional Directors
General of Central Tax,
(d) Commissioners of Central Tax or Additional Directors General of Central Tax,
(e) Additional Commissioners of Central Tax or Additional Directors of Central
Tax,
(f) Joint Commissioners of Central Tax or Joint Directors of Central Tax,
(g) Deputy Commissioners of Central Tax or Deputy Directors of Central Tax,
(h) 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(1 of
1944.) shall be deemed to be the officers appointed under the provisions of
this Act.
4. Appointment of officers.—(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 Act.
(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. Powers of officers.—(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 Act.
(2) 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 him.
(3) The Commissioner may, subject to such conditions and limitations as may be
specified in this behalf by him, delegate his powers to any other officer who is
subordinate to him.
(4) Notwithstanding anything contained in this section, an Appellate Authority shall
not exercise the powers and discharge the duties conferred or imposed on any other
officer of central tax.
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6. Authorisation of officers of State tax or Union territory tax as proper officer in
certain circumstances.—(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.
(2) Subject to the conditions specified in the notification issued under sub-section
(1),—
(a) where any proper officer issues an order under this Act, he shall also issue an
order under the 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;
(b) where a proper officer under the State Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act has initiated any proceedings on a
subject matter, no proceedings shall be initiated by the proper officer under
this Act on the same subject matter.
(3) Any proceedings for rectification, appeal and revision, wherever applicable, of
any order passed by an officer appointed under this Act shall not lie before an officer
appointed under the State Goods and Services Tax Act or the Union Territory Goods
and Services Tax Act.
Chapter III
LEVY AND COLLECTION OF TAX
7. Scope of supply.—(1) For the purposes of this Act, the expression “supply”
includes—
(a) 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;
13
[(aa) the activities or transactions, by a person, other than an individual, to its
members or constituents or vice-versa, for cash, deferred payment or other
valuable consideration.
Explanation.—For the purposes of this clause, it is hereby clarified that,
notwithstanding anything contained in any other law for the time being in
force or any judgment, decree or order of any Court, tribunal or authority, the
person and its members or constituents shall be deemed to be two separate
persons and the supply of activities or transactions inter se shall be deemed to
take place from one such person to another;]
(b) import of services for a consideration whether or not in the course or
furtherance of business; 14 [and]
(c) the activities specified in Schedule I, made or agreed to be made without a
consideration;15 [* * *]
16
[* * *]
17 [(1-A) where certain activities or transactions constitute a supply in accordance
with the provisions of sub-section (1), they shall be treated either as supply of goods
or supply of services as referred to in Schedule II.]
(2) Notwithstanding anything contained in sub-section (1),—
(a) activities or transactions specified in Schedule III; or
(b) 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,
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shall be treated neither as a supply of goods nor a supply of services.

(3) Subject to the provisions of 18 [sub-sections (1), (1-A) and (2)], the Government
may, on the recommendations of the Council, specify, by notification, the transactions
that are to be treated as—
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
8. Tax liability on composite and mixed supplies.—The tax liability on a composite
or a mixed supply shall be determined in the following manner, namely:—
(a) 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
(b) a mixed supply comprising two or more supplies shall be treated as a supply
of that particular supply which attracts the highest rate of tax.
9. Levy and collection.—(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 person.
(2) 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 Council.
(3) 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 both.
19 [(4)
The Government may, on the recommendations of the Council, by
notification, specify a class of registered persons who shall, in respect of supply of
specified categories of goods or services or both received from an unregistered
supplier, pay the tax on reverse charge basis as the recipient of such supply of 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 such supply of goods or services
or both.]
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. Composition levy.—(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
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exceed fifty lakh rupees, may opt to pay, 20 [in lieu of the tax payable by him under
sub-section (1) of Section 9, an amount of tax calculated at such rate] as may be
prescribed, but not exceeding,—
(a) one per cent. of the turnover in State or turnover in Union territory in case of
a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory
in case of persons engaged in making supplies referred to in clause (b) of
paragraph 6 of Schedule II, and
(c) half per cent. of the turnover in State or turnover in Union territory in case of
other suppliers,
subject to such conditions and restrictions as may be prescribed:
Provided that the Government may, by notification, increase the said limit of fifty
lakh rupees to such higher amount, not exceeding 21 [one crore and fifty lakh
rupees], as may be recommended by the Council.
22 [Provided further that a person who opts to pay tax under clause (a) or clause
(b) or clause (c) may supply services (other than those referred to in clause (b) of
paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in a
State or Union territory in the preceding financial year or five lakh rupees,
whichever is higher.]
23
[Explanation.—For the purposes of second proviso, the value of exempt supply
of services provided by way of extending deposits, loans or advances in so far as
the consideration is represented by way of interest or discount shall not be taken
into account for determining the value of turnover in a State or Union territory.]
(2) The registered person shall be eligible to opt under sub-section (1), if:—
24 [(a) save as provided in sub-section (1), he is not engaged in the supply of
services;]
(b) he is not engaged in making any supply of goods 25 [or services] which are
not leviable to tax under this Act;
(c) he is not engaged in making any inter-State outward supplies of goods 26 [or
services];
(d) he is not engaged in making any supply of goods 27 [or services] through an
electronic commerce operator who is required to collect tax at source under
Section 52; 28 [* * *]
(e) he is not a manufacturer of such goods as may be notified by the
Government on the recommendations of the 29 [Council; and]
30 [(f) he is neither a casual taxable person nor a non-resident taxable person:]
Provided that where more than one registered persons are having the same
Permanent Account Number (issued under the Income-tax Act, 1961 (43 of
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.
31 [(2-A) 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, not
eligible to opt to pay tax under sub-section (1) and sub-section (2), 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 under sub-section (1) of Section 9, an amount of
tax calculated at such rate as may be prescribed, but not exceeding three per cent. of
the turnover in State or turnover in Union territory, if he is not—
(a) engaged in making any supply of goods or services which are not leviable to
tax under this Act;
(b) engaged in making any inter-State outward supplies of goods or services;
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(c) engaged in making any supply of goods or services through an electronic

commerce operator who is required to collect tax at source under Section 52;
(d) a manufacturer of such goods or supplier of such services as may be notified
by the Government on the recommendations of the Council; and
(e) a casual taxable person or a non-resident taxable person:
Provided that where more than one registered person are having the same
Permanent Account Number issued under the Income-tax Act, 1961 (43 of 1961),
the registered person shall not be eligible to opt for the scheme under this sub-
section unless all such registered persons opt to pay tax under this sub-section.]
(3) The option availed of by a registered person under sub-section (1) 32 [or sub-
section (2A), as the case may be,] shall lapse with effect from the day on which his
aggregate turnover during a financial year exceeds the limit specified under sub-
section (1) 33 [or sub-section (2A), as the case may be,].
(4) A taxable person to whom the provisions of sub-section (1) 34 [or, as the case
may be, sub-section (2A)] apply shall not collect any tax from the recipient on
supplies made by him nor shall he be entitled to any credit of input tax.
(5) If the proper officer has reasons to believe that a taxable person has paid tax
under sub-section (1) 35 [or sub-section (2A), as the case may be,] 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 penalty.
36 [Explanation 1.—For the purposes of computing aggregate turnover of a person
for determining his eligibility to pay tax under this section, the expression
“aggregate turnover” shall include the value of supplies made by such person from
the 1st day of April of a financial year up to the date when he becomes liable for
registration under this Act, but shall not include the value of exempt supply of
services provided by way of extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount.
Explanation 2.—For the purposes of determining the tax payable by a person
under this section, the expression “turnover in State or turnover in Union territory”
shall not include the value of following supplies, namely:—
(i) supplies from the first day of April of a financial year up to the date when
such person becomes liable for registration under this Act; and
(ii) exempt supply of services provided by way of extending deposits, loans or
advances in so far as the consideration is represented by way of interest or
discount.]
11. Power to grant exemption from tax.—(1) Where the Government is satisfied
that it is necessary in the public interest so to do, it may, on the recommendations of
the Council, by notification, exempt generally, either absolutely or subject to such
conditions as may be specified therein, goods or services or both of any specified
description from the whole or any part of the tax leviable thereon with effect from such
date as may be specified in such notification.
(2) 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 leviable.
(3) 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
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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 be.
Explanation.—For the purposes of this section, where an exemption in respect of
any goods or services or both from the whole or part of the tax leviable thereon has
been granted absolutely, the registered person supplying such goods or services or
both shall not collect the tax, in excess of the effective rate, on such supply of goods
or services or both.
Chapter IV
TIME AND VALUE OF SUPPLY
12. Time of supply of goods.—(1) The liability to pay tax on goods shall arise at the
time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of goods shall be the earlier of the following dates, namely:
—
(a) the date of issue of invoice by the supplier or the last date on which he is
required, under 37 [* * *] Section 31, to issue the invoice with respect to the
supply; or
(b) the date on which the supplier receives the payment with respect to the
supply:
Provided that where the supplier of taxable goods receives an amount up to
one thousand rupees in excess of the amount indicated in the tax invoice, the
time of supply to the extent of such excess amount shall, at the option of the
said supplier, be the date of issue of invoice in respect of such excess amount.
Explanation 1.—For the purposes of clauses (a) and (b), “supply” shall be deemed
to have been made to the extent it is covered by the invoice or, as the case may be,
the payment.
Explanation 2.—For the purposes of clause (b), “the date on which the supplier
receives the payment” shall be the date on which the payment is entered in his books
of account or the date on which the payment is credited to his bank account,
whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse
charge basis, the time of supply shall be the earliest of the following dates, namely:—
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the books of account of the recipient or the
date on which the payment is debited in his bank account, whichever is
earlier; or
(c) the date immediately following thirty days from the date of issue of invoice or
any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under
clause (a) or clause (b) or clause (c), the time of supply shall be the date of
entry in the books of account of the recipient of supply.
(4) In case of supply of vouchers by a supplier, the time of supply shall be—
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the provisions of
sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall—
(a) in a case where a periodical return has to be filed, be the date on which such
return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply
by way of interest, late fee or penalty for delayed payment of any consideration shall
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be the date on which the supplier receives such addition in value.
13. Time of supply of services.—(1) The liability to pay tax on services shall arise at
the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates,
namely:—
(a) the date of issue of invoice by the supplier, if the invoice is issued within the
period prescribed under 38 [* * *] Section 31 or the date of receipt of payment,
whichever is earlier; or
(b) the date of provision of service, if the invoice is not issued within the period
prescribed under 39 [* * *] Section 31 or the date of receipt of payment,
whichever is earlier; or
(c) 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)—
(i) 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;
(ii) “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.
(3) In case of supplies in respect of which tax is paid or liable to be paid on reverse
charge basis, the time of supply shall be the earlier of the following dates, namely:—
(a) 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
(b) the date immediately following sixty days from the date of issue of invoice or
any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under
clause (a) or clause (b), the time of supply shall be the date of entry in the
books of account of the recipient of supply:
Provided further that in case of supply by associated enterprises, where the
supplier of service is located outside India, the time of supply shall be the
date of entry in the books of account of the recipient of supply or the date of
payment, whichever is earlier.
(4) In case of supply of vouchers by a supplier, the time of supply shall be—
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the provisions of
sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall—
(a) in a case where a periodical return has to be filed, be the date on which such
return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply
by way of interest, late fee or penalty for delayed payment of any consideration shall
be the date on which the supplier receives such addition in value.
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14. Change in rate of tax in respect of supply of goods or services.—
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:—
(a) in case the goods or services or both have been supplied before the change in
rate of tax,—
(i) 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
(ii) 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
(iii) where the payment has been received before the change in rate of tax, but
the invoice for the same is issued after the change in rate of tax, the time of
supply shall be the date of receipt of payment;
(b) in case the goods or services or both have been supplied after the change in
rate of tax,—
(i) 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
(ii) 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
(iii) 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. Value of taxable supply.—(1) The value of a supply of goods or services or both
shall be the transaction value, which is the price actually paid or payable for the said
supply of goods or services or both where the supplier and the recipient of the supply
are not related and the price is the sole consideration for the supply.
(2) The value of supply shall include—
(a) 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;
(b) 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;
(c) 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;
(d) interest or late fee or penalty for delayed payment of any consideration for
any supply; and
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(e) subsidies directly linked to the price excluding subsidies provided by the
Central Government and State Governments.
Explanation.—For the purposes of this sub-section, the amount of subsidy shall be
included in the value of supply of the supplier who receives the subsidy.
(3) The value of the supply shall not include any discount which is given—
(a) 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
(b) after the supply has been effected, if—
(i) such discount is established in terms of an agreement entered into at or
before the time of such supply and specifically linked to relevant invoices;
and
(ii) 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.
(4) Where the value of the supply of goods or services or both cannot be
determined under sub-section (1), the same shall be determined in such manner as
may be prescribed.
(5) 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 prescribed.
Explanation.—For the purposes of this Act,—
(a) persons shall be deemed to be “related persons” if—
(i) such persons are officers or directors of one another's businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) 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;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family;
(b) the term “person” also includes legal persons;
(c) persons who are associated in the business of one another in that one is the
sole agent or sole distributor or sole concessionaire, howsoever described, of
the other, shall be deemed to be related.
Chapter V
INPUT TAX CREDIT
16. Eligibility and conditions for taking input tax credit.—(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 person.
(2) Notwithstanding anything contained in this section, no registered person shall
be entitled to the credit of any input tax in respect of any supply of goods or services
or both to him unless,—
(a) 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;
40 [(aa) the details of the invoice or debit note referred to in clause (a) has been
furnished by the supplier in the statement of outward supplies and such

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details have been communicated to the recipient of such invoice or debit note
in the manner specified under Section 37;]
(b) he has received the goods or services or both.
41 [Explanation.—For the purposes of this clause, it shall be deemed that the
registered person has received the goods or, as the case may be, services—
(i) 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;
(ii) where the services are provided by the supplier to any person on the
direction of and on account of such registered person.]
(c) subject to the provisions of 42 [Section 41 or Section 43-A], 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
(d) he has furnished the return under Section 39:
Provided that where the goods against an invoice are received in lots or
instalments, the registered person shall be entitled to take credit upon receipt
of the last lot or instalment:
Provided further that where a recipient fails to pay to the supplier of goods
or services or both, other than the supplies on which tax is payable on reverse
charge basis, the amount towards the value of supply along with tax payable
thereon within a period of one hundred and eighty days from the date of issue
of invoice by the supplier, an amount equal to the input tax credit availed by
the recipient shall be added to his output tax liability, along with interest
thereon, in such manner as may be prescribed:
Provided also that the recipient shall be entitled to avail of the credit of
input tax on payment made by him of the amount towards the value of supply
of goods or services or both along with tax payable thereon.
(3) Where the registered person has claimed depreciation on the tax component of
the cost of capital goods and plant and machinery under the provisions of the Income-
tax Act, 1961 (43 of 1961), the input tax credit on the said tax component shall not
be allowed.
(4) 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 43 [* * *] debit note pertains or
furnishing of the relevant annual return, whichever is earlier:
44 [Provided that the registered person shall be entitled to take input tax credit after
the due date of furnishing of the return under Section 39 for the month of September,
2018 till the due date of furnishing of the return under the said section for the month
of March, 2019 in respect of any invoice or 45 [* * *] debit note for supply of goods or
services or both made during the financial year 2017-18, the details of which have
been uploaded by the supplier under sub-section (1) of Section 37 till the due date for
furnishing the details under sub-section (1) of said section for the month of March,
2019.]
17. Apportionment of credit and blocked credits.—(1) Where the goods or services
or both are used by the registered person partly for the purpose of any business and
partly for other purposes, the amount of credit shall be restricted to so much of the
input tax as is attributable to the purposes of his business.
(2) Where the goods or services or both are used by the registered person partly for
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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 supplies.
(3) The value of exempt supply under sub-section (2) shall be such as may be
prescribed, and shall include supplies on which the recipient is liable to pay tax on
reverse charge basis, transactions in securities, sale of land and, subject to clause (b)
of paragraph 5 of Schedule II, sale of building.
46 [Explanation.—For the purposes of this sub-section, the expression “value of
exempt supply” shall not include the value of activities or transactions specified in
Schedule III, except those specified in paragraph 5 of the said Schedule.]
(4) A banking company or a financial institution including a non-banking financial
company, engaged in supplying services by way of accepting deposits, extending
loans or advances shall have the option to either comply with the provisions of sub-
section (2), or avail of, every month, an amount equal to fifty per cent. of the eligible
input tax credit on inputs, capital goods and input services in that month and the rest
shall lapse:
Provided that the option once exercised shall not be withdrawn during the
remaining part of the financial year:
Provided further that the restriction of fifty per cent. shall not apply to the tax
paid on supplies made by one registered person to another registered person
having the same Permanent Account Number.
(5) Notwithstanding anything contained in sub-section (1) of Section 16 and sub-
section (1) of Section 18, input tax credit shall not be available in respect of the
following, namely:—
47 [(a) motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), except when
they are used for making the following taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used—
(i) for making the following taxable supplies, namely:—
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as
they relate to motor vehicles, vessels or aircraft referred to in clause (a) or
clause (aa):
Provided that the input tax credit in respect of such services shall be
available—
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or
clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged—
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor
vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both—
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(i) food and beverages, outdoor catering, beauty treatment, health services,
cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles,
vessels or aircraft referred to in clause (a) or clause (aa) except when used
for the purposes specified therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or
both shall be available where an inward supply of such goods or services or
both 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;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home
travel concession:
Provided that the input tax credit in respect of such goods or services or
both shall be available, where it is obligatory for an employer to provide the
same to its employees under any law for the time being in force.]
(c) 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;
(d) goods or services or both received by a taxable person for construction of an
immovable property (other than plant or machinery) on his own account
including when such goods or services or both are used in the course or
furtherance of business.
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;
(e) goods or services or both on which tax has been paid under Section 10;
(f) goods or services or both received by a non-resident taxable person except on
goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free
samples; and
(i) any tax paid in accordance with the provisions of Sections 74, 129 and 130.
(6) The Government may prescribe the manner in which the credit referred to in
sub-sections (1) and (2) may be attributed.
Explanation.—For the purposes of this Chapter and Chapter VI, the expression
“plant and machinery” means apparatus, equipment, and machinery fixed to earth by
foundation or structural support that are used for making outward supply of goods or
services or both and includes such foundation and structural supports but excludes—
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
18. Availability of credit in special circumstances.—(1) Subject to such conditions
and restrictions as may be prescribed—
(a) a person who has applied for registration under this Act within thirty days
from the date on which he becomes liable to registration and has been
granted such registration shall be entitled to take credit of input tax in respect
of inputs held in stock and inputs contained in semi-finished or finished goods
held in stock on the day immediately preceding the date from which he
becomes liable to pay tax under the provisions of this Act;
(b) a person who takes registration under sub-section (3) of Section 25 shall be
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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;
(c) 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;
(d) where an exempt supply of goods or services or both by a registered person
becomes a taxable supply, such person shall be entitled to take credit of input
tax in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock relatable to such exempt supply and on capital
goods exclusively used for such exempt supply on the day immediately
preceding the date from which such supply becomes taxable:
Provided that the credit on capital goods shall be reduced by such
percentage points as may be prescribed.
(2) A registered person shall not be entitled to take input tax credit under sub-
section (1) in respect of any supply of goods or services or both to him after the expiry
of one year from the date of issue of tax invoice relating to such supply.
(3) 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 prescribed.
(4) 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.
(5) The amount of credit under sub-section (1) and the amount payable under sub-
section (4) shall be calculated in such manner as may be prescribed.
(6) 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. Taking input tax credit in respect of inputs and capital goods sent for job work.
—(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 work.
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(2) Notwithstanding anything contained in clause (b) of sub-section (2) of Section
16, the principal shall be entitled to take credit of input tax on inputs even if the
inputs are directly sent to a job worker for job work without being first brought to his
place of business.
(3) 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.
(4) 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
work.
(5) 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 business.
(6) Where the capital goods sent for job work are not received back by the principal
within a period of three years of being sent out, it shall be deemed that such capital
goods had been supplied by the principal to the job worker on the day when the said
capital goods were sent out:
Provided that where the capital goods are sent directly to a job worker, the
period of three years shall be counted from the date of receipt of capital goods by
the job worker.
(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds
and dies, jigs and fixtures, or tools sent out to a job worker for job work.
Explanation.—For the purpose of this section, “principal” means the person referred
to in Section 143.
20. Manner of distribution of credit by Input Service Distributor.—(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
prescribed.
(2) The Input Service Distributor may distribute the credit subject to the following
conditions, namely:—
(a) the credit can be distributed to the recipients of credit against a document
containing such details as may be prescribed;
(b) the amount of the credit distributed shall not exceed the amount of credit
available for distribution;
(c) the credit of tax paid on input services attributable to a recipient of credit
shall be distributed only to that recipient;
(d) the credit of tax paid on input services attributable to more than one
recipient of credit shall be distributed amongst such recipients to whom the
input service is attributable and such distribution shall be pro rata on the
basis of the turnover in a State or turnover in a Union territory of such
recipient, during the relevant period, to the aggregate of the turnover of all
such recipients to whom such input service is attributable and which are
operational in the current year, during the said relevant period;
(e) the credit of tax paid on input services attributable to all recipients of credit
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shall be distributed amongst such recipients and such distribution shall be pro
rata on the basis of the turnover in a State or turnover in a Union territory of
such recipient, during the relevant period, to the aggregate of the turnover of
all recipients and which are operational in the current year, during the said
relevant period.
Explanation.—For the purposes of this section,—
(a) the “relevant period” shall be—
(i) 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
(ii) 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;
(b) 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;
(c) 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 48
[under entries 84 and 92-A] of List I of the Seventh Schedule to the
Constitution and entries 51 and 54 of List II of the said Schedule.
21. Manner of recovery of credit distributed in excess.—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 recovered.
Chapter VI
REGISTRATION
22. Persons liable for registration.—(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.
49
[Provided further that the Government may, at the request of a special
category State and on the recommendations of the Council, enhance the aggregate
turnover referred to in the first proviso from ten lakh rupees to such amount, not
exceeding twenty lakh rupees and subject to such conditions and limitations, as
may be so notified.]
50 [Provided also that the Government may, at the request of a State and on the
recommendations of the Council, enhance the aggregate turnover from twenty lakh
rupees to such amount not exceeding forty lakh rupees in case of supplier who is
engaged exclusively in the supply of goods, subject to such conditions and
limitations, as may be notified.
Explanation.—For the purposes of this sub-section, a person shall be considered
to be engaged exclusively in the supply of goods even if he is engaged in exempt
supply of services provided by way of extending deposits, loans or advances in so
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far as the consideration is represented by way of interest or discount.]
(2) Every person who, on the day immediately preceding the appointed day, is
registered or holds a licence under an existing law, shall be liable to be registered
under this Act with effect from the appointed day.
(3) 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 succession.
(4) 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.
(i) 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;
(ii) 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;
(iii) the expression “special category States” shall mean the States as specified
in sub-clause (g) of clause (4) of Article 279-A of the Constitution 51 [except
the State of Jammu and Kashmir 52 [and States of Arunachal Pradesh, Assam,
Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand]].
23. Persons not liable for registration.—(1) The following persons shall not be liable
to registration, namely:—
(a) 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;
(b) an agriculturist, to the extent of supply of produce out of cultivation of land.
specify the category of persons who may be exempted from obtaining registration
under this Act.
24. Compulsory registration in certain cases.—Notwithstanding anything contained
in sub-section (1) of Section 22, the following categories of persons shall be required
to be registered under this Act,—
(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge;
(iv) person who are required to pay tax under sub-section (5) of Section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under Section 51, whether or not
separately registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered under this
Act;
(ix) persons who supply goods or services or both, other than supplies specified
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under sub-section (5) of Section 9, through such electronic commerce
operator who is required to collect tax at source under Section 52;
(x) every electronic commerce operator 53 [who is required to collect tax at source
under Section 52];
(xi) 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
(xii) such other person or class of persons as may be notified by the Government
on the recommendations of the Council.
25. Procedure for registration.—(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 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:
54 [Provided further that a person having a unit, as defined in the Special
Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic
Zone developer shall have to apply for a separate registration, as distinct from his
place of business located outside the Special Economic Zone in the same State or
Union territory.]
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.
(2) A person seeking registration under this Act shall be granted a single
registration in a State or Union territory:
55 [Provided that a person having multiple places of business in a State or Union
territory may be granted a separate registration for each such place of business,
subject to such conditions as may be prescribed.]
(3) A person, though not liable to be registered under Section 22 or Section 24 may
get himself registered voluntarily, and all provisions of this Act, as are applicable to a
registered person, shall apply to such person.
(4) A person who has obtained or is required to obtain more than one registration,
whether in one State or Union territory or more than one State or Union territory shall,
in respect of each such registration, be treated as distinct persons for the purposes of
this Act.
(5) 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 Act.
(6) Every person shall have a Permanent Account Number issued under the Income
-tax Act, 1961 (43 of 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.
56
[(6-A) Every registered person shall undergo authentication, or furnish proof of
possession of Aadhaar number, in such form and manner and within such time as may
be prescribed:
Provided that if an Aadhaar number is not assigned to the registered person,
such person shall be offered alternate and viable means of identification in such
manner as Government may, on the recommendations of the Council, prescribe:
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Provided further that in case of failure to undergo authentication or furnish proof
of possession of Aadhaar number or furnish alternate and viable means of
identification, registration allotted to such person shall be deemed to be invalid and
the other provisions of this Act shall apply as if such person does not have a
registration.
(6-B) On and from the date of notification, every individual shall, in order to be
eligible for grant of registration, undergo authentication, or furnish proof of possession
of Aadhaar number, in such manner as the Government may, on the recommendations
of the Council, specify in the said notification:
Provided that if an Aadhaar number is not assigned to an individual, such
individual shall be offered alternate and viable means of identification in such
manner as the Government may, on the recommendations of the Council, specify in
the said notification.
(6-C) On and from the date of notification, every person, other than an individual,
shall, in order to be eligible for grant of registration, undergo authentication, or furnish
proof of possession of Aadhaar number of the Karta, Managing Director, whole time
Director, such number of partners, Members of Managing Committee of Association,
Board of Trustees, authorised representative, authorised signatory and such other
class of persons, in such manner, as the Government may, on the recommendations of
the Council, specify in the said notification:
Provided that where such person or class of persons have not been assigned the
Aadhaar Number, such person or class of persons shall be offered alternate and
viable means of identification in such manner as the Government may, on the
recommendations of the Council, specify in the said notification.
(6-D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C)
shall not apply to such person or class of persons or any State or Union territory or
part thereof, as the Government may, on the recommendations of the Council, specify
by notification.
Explanation.—For the purposes of this section, the expression “Aadhaar number”
shall have the same meaning as assigned to it in clause (a) of Section 2 of the
Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services)
Act, 2016 (18 of 2016).]
(7) Notwithstanding anything contained in sub-section (6), a non-resident taxable
person may be granted registration under sub-section (1) on the basis of such other
documents as may be prescribed.
(8) 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 prescribed.
(9) Notwithstanding anything contained in sub-section (1),—
(a) 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 (46 of 1947), Consulate or Embassy of
foreign countries; and
(b) any other person or class of persons, as may be notified by the
Commissioner,
shall be granted a Unique Identity Number in such manner and for such purposes,
including refund of taxes on the notified supplies of goods or services or both received
by them, as may be prescribed.
(10) The registration or the Unique Identity Number shall be granted or rejected
after due verification in such manner and within such period as may be prescribed.
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(11) A certificate of registration shall be issued in such form and with effect from
such date as may be prescribed.
(12) A registration or a Unique Identity Number shall be deemed to have been
granted after the expiry of the period prescribed under sub-section (10), if no
deficiency has been communicated to the applicant within that period.
26. Deemed registration.—(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 25.
(2) Notwithstanding anything contained in sub-section (10) of Section 25, any
rejection of application for registration or the Unique Identity Number under the 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. Special provisions relating to casual taxable person and non-resident taxable
person.—(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.
(2) 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.
(3) 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
49.
28. Amendment of registration.—(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 prescribed.
(2) 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.
(3) Any rejection or approval of amendments under the State Goods and Services
Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall
be deemed to be a rejection or approval under this Act.
29. Cancellation 57 [or suspension] of registration.—(1) The proper officer may,
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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 registration, in such manner
and within such period as may be prescribed, having regard to the circumstances
where,—
(a) 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
(b) there is any change in the constitution of the business; or
58
[(c) the taxable person is no longer liable to be registered under Section 22 or
Section 24 or intends to optout of the registration voluntarily made under sub-
section (3) of Section 25]:
59 [Provided that during pendency of the proceedings relating to cancellation of
registration filed by the registered person, the registration may be suspended for such
period and in such manner as may be prescribed.]
(2) The proper officer may cancel the registration of a person from such date,
including any retrospective date, as he may deem fit, where,—
(a) a registered person has contravened such provisions of the Act or the rules
made thereunder as may be prescribed; or
(b) a person paying tax under Section 10 has not furnished returns for three
consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not
furnished returns for a continuous period of six months; or
(d) 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
(e) 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.
60
[Provided further that during pendency of the proceedings relating to
cancellation of registration, the proper officer may suspend the registration for
such period and in such manner as may be prescribed.]
(3) The cancellation of registration under this section shall not affect the liability of
the person to pay tax and other dues under this Act or to discharge any obligation
under this Act or the rules made thereunder for any period prior to the date of
cancellation whether or not such tax and other dues are determined before or after the
date of cancellation.
(4) 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 Act.
(5) 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.
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(6) The amount payable under sub-section (5) shall be calculated in such manner
as may be prescribed.
30. Revocation of cancellation of registration.—(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 order:
61 [Provided that such period may, on sufficient cause being shown, and for reasons
to be recorded in writing, be extended,—

(a) by the Additional Commissioner or the Joint Commissioner, as the case may
be, for a period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond
the period specified in clause (a).]
(2) The proper officer may, in such manner and within such period as may be
prescribed, by order, either revoke cancellation of the registration or reject the
application:
Provided that the application for revocation of cancellation of registration shall
not be rejected unless the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration under the State Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may
be, shall be deemed to be a revocation of cancellation of registration under this Act.
Chapter VII
TAX INVOICE, CREDIT AND DEBIT NOTES
31. Tax invoice.—(1) A registered person supplying taxable goods shall, before or at
the time of,—
(a) removal of goods for supply to the recipient, where the supply involves
movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other
case,
issue a tax invoice showing the description, quantity and value of goods, the tax
charged thereon and such other particulars as may be prescribed:
Provided that the Government may, on the recommendations of the Council, by
notification, specify the categories of goods or supplies in respect of which a tax
invoice shall be issued, within such time and in such manner as may be prescribed.
(2) A registered person supplying taxable services shall, before or after the
provision of service but within a prescribed period, issue a tax invoice, showing the
description, value, tax charged thereon and such other particulars as may be
prescribed:
62 [Provided that the Government may, on the recommendations of the Council, by
notification,—
(a) specify the categories of services or supplies in respect of which a tax invoice
shall be issued, within such time and in such manner as may be prescribed;
(b) subject to the condition mentioned therein, specify the categories of services
in respect of which—
(i) any other document issued in relation to the supply shall be deemed to be
a tax invoice; or
(ii) tax invoice may not be issued.]
(3) Notwithstanding anything contained in sub-sections (1) and (2)—
(a) a registered person may, within one month from the date of issuance of
certificate of registration and in such manner as may be prescribed, issue a
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revised invoice against the invoice already issued during the period beginning
with the effective date of registration till the date of issuance of certificate of
registration to him;
(b) a registered person may not issue a tax invoice if the value of the goods or
services or both supplied is less than two hundred rupees subject to such
conditions and in such manner as may be prescribed;
(c) a registered person supplying exempted goods or services or both or paying
tax under the provisions of Section 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;
(d) a registered person shall, on receipt of advance payment with respect to any
supply of goods or services or both, issue a receipt voucher or any other
document, containing such particulars as may be prescribed, evidencing
receipt of such payment;
(e) where, on receipt of advance payment with respect to any supply of goods or
services or both the registered person issues a receipt voucher, but
subsequently no supply is made and no tax invoice is issued in pursuance
thereof, the said registered person may issue to the person who had made the
payment, a refund voucher against such payment;
(f) 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;
(g) a registered person who is liable to pay tax under sub-section (3) or sub-
section (4) of Section 9 shall issue a payment voucher at the time of making
payment to the supplier.
(4) In case of continuous supply of goods, where successive statements of accounts
or successive payments are involved, the invoice shall be issued before or at the time
each such statement is issued or, as the case may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous
supply of services,—
(a) where the due date of payment is ascertainable from the contract, the invoice
shall be issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the
invoice shall be issued before or at the time when the supplier of service
receives the payment;
(c) where the payment is linked to the completion of an event, the invoice shall
be issued on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before the
completion of the supply, the invoice shall be issued at the time when the supply
ceases and such invoice shall be issued to the extent of the supply made before such
cessation.
(7) Notwithstanding anything contained in sub-section (1), where the goods being
sent or taken on approval for sale or return are removed before the supply takes place,
the invoice shall be issued before or at the time of supply or six months from the date
of removal, whichever is earlier.
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.
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63
[31-A. Facility of digital payment to recipient.—The Government may, on the
recommendations of the Council, prescribe a class of registered persons who shall
provide prescribed modes of electronic payment to the recipient of supply of goods or
services or both made by him and give option to such recipient to make payment
accordingly, in such manner and subject to such conditions and restrictions, as may be
prescribed.]
32. Prohibition of unauthorised collection of tax.—(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 Act.
(2) No registered person shall collect tax except in accordance with the provisions
of this Act or the rules made thereunder.
33. Amount of tax to be indicated in tax invoice and other documents.—
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 made.
34. Credit and debit notes.—(1) 64 [Where one or more tax invoices have] 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 65 [one or
more credit notes for supplies made in a financial year] containing such particulars as
may be prescribed.
(2) Any registered person who issues a credit note in relation to a supply of goods
or services or both shall declare the details of such credit note in the return for the
month during which such credit note has been issued but not later than September
following the end of the financial year in which such supply was made, or the date of
furnishing of the relevant annual return, whichever is earlier, and the tax liability shall
be adjusted in such manner as may be prescribed:
Provided that no reduction in output tax liability of the supplier shall be
permitted, if the incidence of tax and interest on such supply has been passed on to
any other person.
(3) 66 [Where one or more tax invoices have] 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 67
[one or more debit notes for supplies made in a financial year] containing such
particulars as may be prescribed.
(4) Any registered person who issues a debit note in relation to a supply of goods or
services or both shall declare the details of such debit note in the return for the month
during which such debit note has been issued and the tax liability shall be adjusted in
such manner as may be prescribed.
Explanation.—For the purposes of this Act, the expression “debit note” shall include
a supplementary invoice.
Chapter VIII
ACCOUNTS AND RECORDS
35. Accounts and other records.—(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—
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(a) production or manufacture of goods;
(b) inward and outward supply of goods or services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid; and
(f) such other particulars as may be prescribed:
Provided that where more than one place of business is specified in the
certificate of registration, the accounts relating to each place of business shall
be kept at such places of business:
Provided further that the registered person may keep and maintain such
accounts and other particulars in electronic form in such manner as may be
prescribed.
(2) Every owner or operator of warehouse or godown or any other place used for
storage of goods and every transporter, irrespective of whether he is a registered
person or not, shall maintain records of the consigner, consignee and other relevant
details of the goods in such manner as may be prescribed.
(3) The Commissioner may notify a class of taxable persons to maintain additional
accounts or documents for such purpose as may be specified therein.
(4) 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 prescribed.
(5) 68 [* * *]
(6) 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 tax.
36. Period of retention of accounts.—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. Furnishing details of outward supplies.—(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
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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.
(2) Every registered person who has been communicated the details under sub-
section (3) of Section 38 or the details pertaining to inward supplies of Input Service
Distributor under sub-section (4) of Section 38, shall either accept or reject the details
so communicated, on or before the seventeenth day, but not before the fifteenth day,
of the month succeeding the tax period and the details furnished by him under sub-
section (1) shall stand amended accordingly.
(3) 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 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.
69 [Provided further that the 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, 2018 till the due date for
furnishing the details under sub-section (1) for the month of March, 2019 or for the
quarter January, 2019 to March, 2019.]
Explanation.—For the purposes of this Chapter, the expression “details of outward
supplies” shall include details of invoices, debit notes, credit notes and revised
invoices issued in relation to outward supplies made during any tax period.
38. Furnishing details of inward supplies— (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 37.
(2) 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 (51 of 1975), and credit or debit notes received in
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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.
(3) The details of supplies modified, deleted or included by the recipient and
furnished under sub-section (2) shall be communicated to the supplier concerned in
such manner and within such time as may be prescribed.
(4) The details of supplies modified, deleted or included by the recipient in the
return furnished under sub-section (2) or sub-section (4) of Section 39 shall be
communicated to the supplier concerned in such manner and within such time as may
be prescribed.
(5) 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.
39. Furnishing of returns.—70 [(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, 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, in such form and manner, and within such time, as may be prescribed:
Provided that the Government may, on the recommendations of the Council,
notify certain class of registered persons who shall furnish a return for every quarter
or part thereof, subject to such conditions and restrictions as may be specified
therein.
(2) A registered person paying tax under the provisions of Section 10, shall, for
each financial year or part thereof, furnish a return, electronically, of turnover in the
State or Union territory, inward supplies of goods or services or both, tax payable, tax
paid and such other particulars in such form and manner, and within such time, as
may be prescribed.]
(3) 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 month.
(4) Every taxable person registered as an Input Service Distributor shall, for every
calendar month or part thereof, furnish, in such form and manner as may be
prescribed, a return, electronically, within thirteen days after the end of such month.
(5) Every registered non-resident taxable person shall, for every calendar month or
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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 earlier.
(6) The Commissioner may, for reasons to be recorded in writing, by notification,
extend the time limit for furnishing the returns under this section for such class of
registered persons as may be specified therein:
Provided that any extension of time limit notified by the Commissioner of State
tax or Union territory tax shall be deemed to be notified by the Commissioner.
71 [(7) Every registered person who is required to furnish a return under sub-section
(1), other than the person referred to in the proviso thereto, or sub-section (3) or sub-
section (5), shall pay to the Government the tax due as per such return not later than
the last date on which he is required to furnish such return:
Provided that every registered person furnishing return under the proviso to sub-
section (1) shall pay to the Government, the tax due taking into account inward and
outward supplies of goods or services or both, input tax credit availed, tax payable
and such other particulars during a month, in such form and manner, and within
such time, as may be prescribed:
Provided further that every registered person furnishing return under sub-section
(2) shall pay to the Government, the tax due taking into account turnover in the
State or Union territory, inward supplies of goods or services or both, tax payable,
and such other particulars during a quarter, in such form and manner, and within
such time, as may be prescribed.]
(8) Every registered person who is required to furnish a return under sub-section
(1) or sub-section (2) shall furnish a return for every tax period whether or not any
supplies of goods or services or both have been made during such tax period.
(9) Subject to the provisions of Sections 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 72 [in such form and
manner as may be perscribed], 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 73 [the end of the financial year to which such details
pertain], or the actual date of furnishing of relevant annual return, whichever is
earlier.
(10) A registered person shall not be allowed to furnish a return for a tax period if
the return for any of the previous tax periods has not been furnished by him.
40. First return.—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. Claim of input tax credit and provisional acceptance thereof.—(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
ledger.
(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. Matching, reversal and reclaim of input tax credit.—(1) The details of every
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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—
(a) 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;
(b) with the integrated goods and services tax paid under Section 3 of the
Customs Tariff Act, 1975 (51 of 1975) in respect of goods imported by him;
and
(c) for duplication of claims of input tax credit.
(2) The claim of input tax credit in respect of invoices or debit notes relating to
inward supply that match with the details of corresponding outward supply or with the
integrated goods and services tax paid under Section 3 of the Customs Tariff Act, 1975
(51 of 1975) in respect of goods imported by him shall be finally accepted and such
acceptance shall be communicated, in such manner as may be prescribed, to the
recipient.
(3) 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 prescribed.
(4) The duplication of claims of input tax credit shall be communicated to the
recipient in such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under sub-
section (3) and which is not rectified by the supplier in his valid return for the month
in which discrepancy is communicated shall be added to the output tax liability of the
recipient, in such manner as may be prescribed, in his return for the month
succeeding the month in which the discrepancy is communicated.
(6) The amount claimed as input tax credit that is found to be in excess on account
of duplication of claims shall be added to the output tax liability of the recipient in his
return for the month in which the duplication is communicated.
(7) The recipient shall be eligible to reduce, from his output tax liability, the
amount added under sub-section (5), if the supplier declares the details of the invoice
or debit note in his valid return within the time specified in sub-section (9) of Section
39.
(8) A recipient in whose output tax liability any amount has been added under sub-
section (5) or sub-section (6), shall be liable to pay interest at the rate specified under
sub-section (1) of Section 50 on the amount so added from the date of availing of
credit till the corresponding additions are made under the said sub-sections.
(9) Where any reduction in output tax liability is accepted under sub-section (7),
the interest paid under sub-section (8) shall be refunded to the recipient by crediting
the amount in the corresponding head of his electronic cash ledger in such manner as
may be prescribed:
Provided that the amount of interest to be credited in any case shall not exceed
the amount of interest paid by the supplier.
(10) The amount reduced from the output tax liability in contravention of the
provisions of sub-section (7) shall be added to the output tax liability of the recipient
in his return for the month in which such contravention takes place and such recipient
shall be liable to pay interest on the amount so added at the rate specified in sub-
section (3) of Section 50.
43. Matching, reversal and reclaim of reduction in output tax liability.—(1) The
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details of every credit note relating to outward supply furnished by a registered person
(hereafter in this section referred to as the “supplier”) for a tax period shall, in such
manner and within such time as may be prescribed, be matched—
(a) with the corresponding reduction in the claim for input tax credit by the
corresponding registered person (hereafter in this section referred to as the
“recipient”) in his valid return for the same tax period or any subsequent tax
period; and
(b) for duplication of claims for reduction in output tax liability.
(2) The claim for reduction in output tax liability by the supplier that matches with
the corresponding reduction in the claim for input tax credit by the recipient shall be
finally accepted and communicated, in such manner as may be prescribed, to the
supplier.
(3) Where the reduction of output tax liability in respect of outward supplies
exceeds the corresponding reduction in the claim for input tax credit or the
corresponding credit note is not declared by the recipient in his valid returns, the
discrepancy shall be communicated to both such persons in such manner as may be
prescribed.
(4) The duplication of claims for reduction in output tax liability shall be
communicated to the supplier in such manner as may be prescribed.
section (3) and which is not rectified by the recipient in his valid return for the month
in which discrepancy is communicated shall be added to the output tax liability of the
supplier, in such manner as may be prescribed, in his return for the month succeeding
the month in which the discrepancy is communicated.
(6) The amount in respect of any reduction in output tax liability that is found to be
on account of duplication of claims shall be added to the output tax liability of the
supplier in his return for the month in which such duplication is communicated.
(7) The supplier shall be eligible to reduce, from his output tax liability, the amount
added under sub-section (5) if the recipient declares the details of the credit note in
his valid return within the time specified in sub-section (9) of Section 39.
(8) A supplier in whose output tax liability any amount has been added under sub-
section (5) or sub-section (6), shall be liable to pay interest at the rate specified under
sub-section (1) of Section 50 in respect of the amount so added from the date of such
claim for reduction in the output tax liability till the corresponding additions are made
under the said sub-sections.
(9) Where any reduction in output tax liability is accepted under sub-section (7),
the interest paid under sub-section (8) shall be refunded to the supplier by crediting
the amount in the corresponding head of his electronic cash ledger in such manner as
may be prescribed:
Provided that the amount of interest to be credited in any case shall not exceed
the amount of interest paid by the recipient.
(10) The amount reduced from output tax liability in contravention of the provisions
of sub-section (7) shall be added to the output tax liability of the supplier in his return
for the month in which such contravention takes place and such supplier shall be liable
to pay interest on the amount so added at the rate specified in sub-section (3) of
Section 50.
74
[43-A. Procedure for furnishing return and availing input tax credit.—(1)
Notwithstanding anything contained in sub-section (2) of Section 16, Section 37 or
Section 38, every registered person shall in the returns furnished under sub-section
(1) of Section 39 verify, validate, modify or delete the details of supplies furnished by
the suppliers.
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(2) Notwithstanding anything contained in Section 41, Section 42 or Section 43,
the procedure for availing of input tax credit by the recipient and verification thereof
shall be such as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on
the common portal, for the purposes of availing input tax credit by the recipient shall
be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not
furnished under sub-section (3) shall be such as may be prescribed and such
procedure may include the maximum amount of the input tax credit which can be so
availed, not exceeding twenty per cent. of the input tax credit available, on the basis
of details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have
been furnished by the supplier under sub-section (3) shall be deemed to be the tax
payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to
pay tax or to pay the input tax credit availed, as the case may be, in relation to
outward supplies for which the details have been furnished under sub-section (3) or
sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner
as may be prescribed and such procedure may provide for non-recovery of an amount
of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to
outward supplies, the details of which can be furnished under sub-section (3) by a
registered person,—
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued
for more than two months from the due date of payment of such defaulted
amount,
shall be such as may be prescribed.]
75 [44.
Annual return.—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 which may
include a self-certified reconciliation statement, reconciling the value of supplies
declared in the return furnished for the financial year, with the audited annual financial
statement for every financial year electronically, within such time and in such form
and in such manner as may be prescribed:
Provided that the Commissioner may, on the recommendations of the Council, by
notification, exempt any class of registered persons from filing annual return under
this section:
Provided further that nothing contained in this section shall apply to any
department of the Central Government or a State Government or a local authority,
whose books of account are subject to audit by the Comptroller and Auditor-General of
India or an auditor appointed for auditing the accounts of local authorities under any
law for the time being in force.]
45. Final return.—Every registered person who is required to furnish a return under
sub-section (1) of Section 39 and whose registration has been cancelled shall furnish a
final return within three months of the date of cancellation or date of order of
cancellation, whichever is later, in such form and manner as may be prescribed.
46. Notice to return defaulters.—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 prescribed.
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47. Levy of late fee.—(1) Any registered person who fails to furnish the details of
outward or inward supplies required under Section 37 or Section 38 or returns
required under Section 39 or Section 45 by the due date shall pay a late fee of one
hundred rupees for every day during which such failure continues subject to a
maximum amount of five thousand rupees.
(2) Any registered person who fails to furnish the return required under Section 44
by the due date shall be liable to pay a late fee of one hundred rupees for every day
during which such failure continues subject to a maximum of an amount calculated at
a quarter per cent. of his turnover in the State or Union territory.
48. Goods and services tax practitioners.—(1) The manner of approval of goods and
services tax practitioners, their eligibility conditions, duties and obligations, manner of
removal and other conditions relevant for their functioning shall be such as may be
prescribed.
(2) A registered person may authorise an approved goods and services tax
practitioner to furnish the details of outward supplies under Section 37, the details of
inward supplies under Section 38 and the return under Section 39 or Section 44 or
Section 45 76 [and to perform such other functions] in such manner as may be
prescribed.
(3) Notwithstanding anything contained in sub-section (2), the responsibility for
correctness of any particulars furnished in the return or other details filed by the goods
and services tax practitioners shall continue to rest with the registered person on
whose behalf such return and details are furnished.
Chapter X
PAYMENT OF TAX
49. Payment of tax, interest, penalty and other amounts.—(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 prescribed.
(2) 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 77 [Section 41 or Section
43-A], to be maintained in such manner as may be prescribed.
(3) 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 prescribed.
(4) 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
(5) The amount of input tax credit available in the electronic credit ledger of the
registered person on account of—
(a) 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;
(b) 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;
(c) 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:
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78
[Provided that the input tax credit on account of State tax shall be utilised
towards payment of integrated tax only where the balance of the input tax
credit on account of central tax is not available for payment of integrated tax;]
(d) the Union territory tax shall first be utilised towards payment of Union
territory tax and the amount remaining, if any, may be utilised towards
payment of integrated tax:
79 [Provided that the input tax credit on account of Union territory tax shall
be utilised towards payment of integrated tax only where the balance of the
input tax credit on account of central tax is not available for payment of
integrated tax;]
(e) the central tax shall not be utilised towards payment of State tax or Union
territory tax; and
(f) the State tax or Union territory tax shall not be utilised towards payment of
central tax.
(6) The balance in the electronic cash ledger or electronic credit ledger after
payment of tax, interest, penalty, fee or any other amount payable under this Act or
the rules made thereunder may be refunded in accordance with the provisions of
Section 54.
(7) All liabilities of a taxable person under this Act shall be recorded and
maintained in an electronic liability register in such manner as may be prescribed.
(8) Every taxable person shall discharge his tax and other dues under this Act or
the rules made thereunder in the following order, namely:—
(a) self-assessed tax, and other dues related to returns of previous tax periods;
(b) self-assessed tax, and other dues related to the return of the current tax
period;
(c) any other amount payable under this Act or the rules made thereunder
including the demand determined under Section 73 or Section 74.
(9) Every person who has paid the tax on goods or services or both under this Act
shall, unless the contrary is proved by him, be deemed to have passed on the full
incidence of such tax to the recipient of such goods or services or both.
(a) 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;
(b) the expression,—
(i) “tax dues” means the tax payable under this Act and does not include
interest, fee and penalty; and
(ii) “other dues” means interest, penalty, fee or any other amount payable under
this Act or the rules made thereunder.
80 [(10) A registered person may, on the common portal, transfer any amount of tax,
interest, penalty, fee or any other amount available in the electronic cash ledger under
this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union
territory tax or cess, in such form and manner and subject to such conditions and
restrictions as may be prescribed and such transfer shall be deemed to be a refund
from the electronic cash ledger under this Act.
(11) Where any amount has been transferred to the electronic cash ledger under
this Act, the same shall be deemed to be deposited in the said ledger as provided in
sub-section (1).]
81
[49-A. Utilisation of input tax credit subject to certain conditions.—
Notwithstanding anything contained in Section 49, the input tax credit on account of
central tax, State tax or Union territory tax shall be utilised towards payment of
integrated tax, central tax, State tax or Union territory tax, as the case may be, only
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after the input tax credit available on account of integrated tax has first been utilised
fully towards such payment.]
82
[49-B. Order of utilisation of input tax credit.—Notwithstanding anything
contained in this Chapter and subject to the provisions of clause (e) and clause (f) of
sub-section (5) of Section 49, the Government may, on the recommendations of the
Council, prescribe the order and manner of utilisation of the input tax credit on
account of integrated tax, central tax, State tax or Union territory tax, as the case may
be, towards payment of any such tax.]
50. Interest on delayed payment of tax.—(1) Every person who is liable to pay tax
in accordance with the provisions of this Act or the rules made thereunder, but fails to
pay the tax or any part thereof to the Government within the period prescribed, shall
for the period for which the tax or any part thereof remains unpaid, pay, on his own,
interest at such rate, not exceeding eighteen per cent., as may be notified by the
Government on the recommendations of the Council:
83
[Provided that the interest on tax payable in respect of supplies made during a tax
period and declared in the return for the said period furnished after the due date in
accordance with the provisions of Section 39, except where such return is furnished
after commencement of any proceedings under Section 73 or Section 74 in respect of
the said period, shall be payable on that portion of the tax which is paid by debiting
the electronic cash ledger.]
(2) The interest under sub-section (1) shall be calculated, in such manner as may
be prescribed, from the day succeeding the day on which such tax was due to be paid.
(3) A taxable person who makes an undue or excess claim of input tax credit under
sub-section (10) of Section 42 or undue or excess reduction in output tax liability
under sub-section (10) of Section 43, shall pay interest on such undue or excess claim
or on such undue or excess reduction, as the case may be, at such rate not exceeding
twenty-four per cent., as may be notified by the Government on the recommendations
of the Council.
51. Tax deduction at source.—(1) Notwithstanding anything to the contrary
contained in this Act, the Government may mandate,—
(a) a department or establishment of the Central Government or State
Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government
on the recommendations of the Council,
(hereafter in this section referred to as “the deductor”), to deduct tax at the rate of
one per cent. from the payment made or credited to the supplier (hereafter in this
section referred to as “the deductee”) of taxable goods or services or both, where the
total value of such supply, under a contract, exceeds two lakh and fifty thousand
rupees:
Provided that no deduction shall be made if the location of the supplier and the
place of supply is in a State or Union territory which is different from the State or as
the case may be, Union territory of registration of the recipient.
Explanation.—For the purpose of deduction of tax specified above, the value of
supply shall be taken as the amount excluding the central tax, State tax, Union
territory tax, integrated tax and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the Government
by the deductor within ten days after the end of the month in which such deduction is
made, in such manner as may be prescribed.
84
[(3) A certificate of tax deduction at source shall be issued in such form and in
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such manner as may be prescribed.]
(4) 85 [* * *]
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax
deducted and reflected in the return of the deductor furnished under sub-section (3)
of Section 39, in such manner as may be prescribed.
(6) If any deductor fails to pay to the Government the amount deducted as tax
under sub-section (1), he shall pay interest in accordance with the provisions of sub-
section (1) of Section 50, in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made in
the manner specified in Section 73 or Section 74.
(8) The refund to the deductor or the deductee arising on account of excess or
erroneous deduction shall be dealt with in accordance with the provisions of Section
54:
Provided that no refund to the deductor shall be granted, if the amount deducted
has been credited to the electronic cash ledger of the deductee.
52. Collection of tax at source.—(1) Notwithstanding anything to the contrary
contained in this Act, every electronic commerce operator (hereafter in this section
referred to as the “operator”), not being an agent, shall collect an amount calculated
at such rate not exceeding one per cent., as may be notified by the Government on
the recommendations of the Council, of the net value of taxable supplies made
through it by other suppliers where the consideration with respect to such supplies is
to be collected by the operator.
Explanation.—For the purposes of this sub-section, the expression “net value of
taxable supplies” shall mean the aggregate value of taxable supplies of goods or
services or both, other than services notified under sub-section (5) of Section 9, made
during any month by all registered persons through the operator reduced by the
aggregate value of taxable supplies returned to the suppliers during the said month.
(2) The power to collect the amount specified in sub-section (1) shall be without
prejudice to any other mode of recovery from the operator.
(3) The amount collected under sub-section (1) shall be paid to the Government by
the operator within ten days after the end of the month in which such collection is
made, in such manner as may be prescribed.
(4) 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
month.
86 [Explanation:—For the purposes of this sub-section, it is hereby declared that the
due date for furnishing the said statement for the months of October, November and
December, 2018 shall be the 87 [7th February, 2019]:]
88
[Provided that the Commissioner may, for reasons to be recorded in writing, by
notification, extend the time limit for furnishing the statement for such class of
State tax or the Commissioner of Union territory tax shall be deemed to be notified
by the Commissioner.]
(5) Every operator who collects the amount specified in sub-section (1) shall furnish
an annual statement, electronically, containing the details of outward supplies of
goods or services or both effected through it, including the supplies of goods or
services or both returned through it, and the amount collected under the said sub-
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section during the financial year, in such form and manner as may be prescribed,
before the thirty first day of December following the end of such financial year:
89
[Provided that the Commissioner may, on the recommendations of the Council
and for reasons to be recorded in writing, by notification, extend the time limit for
furnishing the annual statement for such class of registered persons as may be
specified therein:
State tax or the Commissioner of Union territory tax shall be deemed to be notified
by the Commissioner.]
(6) If any operator after furnishing a statement under sub-section (4) discovers any
omission or incorrect particulars therein, other than as a result of scrutiny, audit,
inspection or enforcement activity by the tax authorities, he shall rectify such omission
or incorrect particulars in the statement to be furnished for the month during which
such omission or incorrect particulars are noticed, subject to payment of interest, as
specified in sub-section (1) of Section 50:
Provided that no such rectification of any omission or incorrect particulars shall
be allowed after the due date for furnishing of statement for the month of
September following the end of the financial year or the actual date of furnishing of
the relevant annual statement, whichever is earlier.
(7) The supplier who has supplied the goods or services or both through the
operator shall claim credit, in his electronic cash ledger, of the amount collected and
reflected in the statement of the operator furnished under sub-section (4), in such
(8) 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 prescribed.
(9) 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 90 [Section 37 or Section 39], the discrepancy shall be communicated to both
persons in such manner and within such time as may be prescribed.
section (9) and which is not rectified by the supplier in his valid return or the operator
in his statement for the month in which discrepancy is communicated, shall be added
to the output tax liability of the said supplier, where the value of outward supplies
furnished by the operator is more than the value of outward supplies furnished by the
supplier, in his return for the month succeeding the month in which the discrepancy is
communicated in such manner as may be prescribed.
(11) The concerned supplier, in whose output tax liability any amount has been
added under sub-section (10), shall pay the tax payable in respect of such supply
along with interest, at the rate specified under sub-section (1) of Section 50 on the
amount so added from the date such tax was due till the date of its payment.
(12) Any authority not below the rank of Deputy Commissioner may serve a notice,
either before or during the course of any proceedings under this Act, requiring the
operator to furnish such details relating to—
(a) supplies of goods or services or both effected through such operator during
any period; or
(b) 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.
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(13) Every operator on whom a notice has been served under sub-section (12) shall
furnish the required information within fifteen working days of the date of service of
such notice.
(14) Any person who fails to furnish the information required by the notice served
under sub-section (12) shall, without prejudice to any action that may be taken under
Section 122, be liable to a penalty which may extend to twenty-five thousand rupees.
Explanation.—For the purposes of this section, the expression “concerned supplier”
shall mean the supplier of goods or services or both making supplies through the
operator.
53. Transfer of input tax credit.—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
91 [53-A. Transfer of certain amounts.—Where any amount has been transferred
from the electronic cash ledger under this Act to the electronic cash ledger under the
State Goods and Services Tax Act or the Union territory Goods and Services Tax Act,
the Government shall, transfer to the State tax account or the Union territory tax
account, an amount equal to the amount transferred from the electronic cash ledger,
in such manner and within such time as may be prescribed.]
Chapter XI
REFUNDS
54. Refund of tax.—(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
(2) A specialised agency of the United Nations Organisation or any Multilateral
Financial Institution and Organisation notified under the United Nations (Privileges and
Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries or any
other person or class of persons, as notified under Section 55, entitled to a refund of
tax paid by it on inward supplies of goods or services or both, may make an
application for such refund, in such form and manner as may be prescribed, before the
expiry of six months from the last day of the quarter in which such supply was
received.
(3) Subject to the provisions of sub-section (10), a registered person may claim
refund of any unutilised input tax credit at the end of any tax period:
Provided that no refund of unutilised input tax credit shall be allowed in cases
other than—
(i) zero rated supplies made without payment of tax;
(ii) where the credit has accumulated on account of rate of tax on inputs being
higher than the rate of tax on output supplies (other than nil rated or fully
exempt supplies), except supplies of goods or services or both as may be
notified by the Government on the recommendations of the Council:
Provided further that no refund of unutilised input tax credit shall be allowed in
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cases where the goods exported out of India are subjected to export duty:
Provided also that no refund of input tax credit shall be allowed, if the supplier of
goods or services or both avails of drawback in respect of central tax or claims refund
of the integrated tax paid on such supplies.
(4) The application shall be accompanied by—
(a) such documentary evidence as may be prescribed to establish that a refund
is due to the applicant; and
(b) such documentary or other evidence (including the documents referred to in
Section 33) as the applicant may furnish to establish that the amount of tax
and interest, if any, paid on such tax or any other amount paid in relation to
which such refund is claimed was collected from, or paid by, him and the
incidence of such tax and interest had not been passed on to any other
person:
Provided that where the amount claimed as refund is less than two lakh
rupees, it shall not be necessary for the applicant to furnish any documentary
and other evidences but he may file a declaration, based on the documentary
or other evidences available with him, certifying that the incidence of such tax
and interest had not been passed on to any other person.
(5) If, on receipt of any such application, the proper officer is satisfied that the
whole or part of the amount claimed as refund is refundable, he may make an order
accordingly and the amount so determined shall be credited to the Fund referred to in
Section 57.
(6) Notwithstanding anything contained in sub-section (5), the proper officer may,
in the case of any claim for refund on account of zero-rated supply of goods or services
or both made by registered persons, other than such category of registered persons as
may be notified by the Government on the recommendations of the Council, refund on
a provisional basis, ninety per cent. of the total amount so claimed, excluding the
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.
(7) The proper officer shall issue the order under sub-section (5) within sixty days
from the date of receipt of application complete in all respects.
(8) Notwithstanding anything contained in sub-section (5), the refundable amount
shall, instead of being credited to the Fund, be paid to the applicant, if such amount is
relatable to—
(a) refund of tax paid on 92 [“export” and “exports”] of goods or services or both
or on inputs or input services used in making such zero-rated supplies;
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either wholly or
partially, and for which invoice has not been issued, or where a refund voucher
has been issued;
(d) refund of tax in pursuance of Section 77;
(e) the tax and interest, if any, or any other amount paid by the applicant, if he
had not passed on the incidence of such tax and interest to any other person;
or
(f) the tax or interest borne by such other class of applicants as the Government
may, on the recommendations of the Council, by notification, specify.
93
[(8-A) The Government may disburse the refund of the State tax in such manner
as may be prescribed.]
(9) Notwithstanding anything to the contrary contained in any judgment, decree,
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order or direction of the Appellate Tribunal or any court or in any other provisions of
this Act or the rules made thereunder or in any other law for the time being in force,
no refund shall be made except in accordance with the provisions of sub-section (8).
(10) Where any refund is due under sub-section (3) to a registered person who has
defaulted in furnishing any return or who is required to pay any tax, interest or
penalty, which has not been stayed by any court, Tribunal or Appellate Authority by
the specified date, the proper officer may—
(a) withhold payment of refund due until the said person has furnished the
return or paid the tax, interest or penalty, as the case may be;
(b) deduct from the refund due, any tax, interest, penalty, fee or any other
amount which the taxable person is liable to pay but which remains unpaid
under this Act or under the existing law.
Explanation.—For the purposes of this sub-section, the expression “specified date”
shall mean the last date for filing an appeal under this Act.
(11) Where an order giving rise to a refund is the subject matter of an appeal or
further proceedings or where any other proceedings under this Act is pending and the
Commissioner is of the opinion that grant of such refund is likely to adversely affect
the revenue in the said appeal or other proceedings on account of malfeasance or
fraud committed, he may, after giving the taxable person an opportunity of being
heard, withhold the refund till such time as he may determine.
(12) Where a refund is withheld under sub-section (11), the taxable person shall,
notwithstanding anything contained in Section 56, be entitled to interest at such rate
not exceeding six per cent. as may be notified on the recommendations of the Council,
if as a result of the appeal or further proceedings he becomes entitled to refund.
(13) Notwithstanding anything to the contrary contained in this section, the amount
of advance tax deposited by a casual taxable person or a non-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 39.
(14) Notwithstanding anything contained in this section, no refund under sub-
section (5) or sub-section (6) shall be paid to an applicant, if the amount is less than
one thousand rupees.
(1) “refund” includes refund of tax paid on zero-rated supplies of goods or services
or both or on inputs or input services used in making such zero-rated supplies, or
refund of tax on the supply of goods regarded as deemed exports, or refund of
unutilised input tax credit as provided under sub-section (3).
(2) “relevant date” means—
(a) in the case of goods exported out of India where a refund 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,—
(i) 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
(ii) if the goods are exported by land, the date on which such goods pass the
frontier; or
(iii) if the goods are exported by post, the date of despatch of goods by the
Post Office concerned to a place outside India;
(b) in the case of supply of goods regarded as deemed exports where a refund of
tax paid is available in respect of the goods, the date on which the return
relating to such deemed exports is furnished;
(c) in the case of services exported out of India where a refund of tax paid is
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available in respect of services themselves or, as the case may be, the inputs
or input services used in such services, the date of—
(i) receipt of payment in convertible foreign exchange 94 [or in Indian rupees
wherever permitted by the Reserve Bank of India], where the supply of
services had been completed prior to the receipt of such payment; or
(ii) issue of invoice, where payment for the services had been received in
advance prior to the date of issue of the invoice;
(d) in case where the tax becomes refundable as a consequence of judgment,
decree, order or direction of the Appellate Authority, Appellate Tribunal or any
court, the date of communication of such judgment, decree, order or
direction;
95 [(e) in the case of refund of unutilised input tax credit under clause (ii) of the
first proviso to sub-section (3), the due date for furnishing of return under
Section 39 for the period in which such claim for refund arises;]
(f) in the case where tax is paid provisionally under this Act or the rules made
thereunder, the date of adjustment of tax after the final assessment thereof;
(g) in the case of a person, other than the supplier, the date of receipt of goods
or services or both by such person; and
(h) in any other case, the date of payment of tax.
55. Refund in certain cases.—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 (46 of 1947), Consulate or
Embassy of foreign countries and any other person or class of persons as may be
specified in this behalf, who shall, subject to such conditions and restrictions as may
be prescribed, be entitled to claim a refund of taxes paid on the notified supplies of
goods or services or both received by them.
56. Interest on delayed refunds.—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 cent. 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 respect of such refund from the
date immediately after the expiry of sixty days from the date of receipt of
application till the date of refund.
Explanation.—For the purposes of this section, where any order of refund is made
by an Appellate Authority, Appellate Tribunal or any court against an order of the
proper officer under sub-section (5) of Section 54, the order passed by the Appellate
Authority, Appellate Tribunal or by the court shall be deemed to be an order passed
under the said sub-section (5).
57. Consumer Welfare Fund.—The Government shall constitute a Fund, to be called
the Consumer Welfare Fund and there shall be credited to the Fund,—
(a) the amount referred to in sub-section (5) of Section 54;
(b) any income from investment of the amount credited to the Fund; and
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(c) such other monies received by it,
in such manner as may be prescribed.
58. Utilisation of Fund.—(1) All sums credited to the Fund shall be utilised by the
Government for the welfare of the consumers in such manner as may be prescribed.
(2) The Government or the authority specified by it shall maintain proper and
separate account and other relevant records in relation to the Fund and prepare an
annual statement of accounts in such form as may be prescribed in consultation with
the Comptroller and Auditor-General of India.
Chapter XII
ASSESSMENT
59. Self-assessment.—Every registered person shall self-assess the taxes payable
under this Act and furnish a return for each tax period as specified under Section 39.
60. Provisional assessment.—(1) Subject to the provisions of sub-section (2), where
the taxable person is unable to determine the value of goods or services or both or
determine the rate of tax applicable thereto, he may request the proper officer in
writing giving reasons for payment of tax on a provisional basis and the proper officer
shall pass an order, within a period not later than ninety days from the date of receipt
of such request, allowing payment of tax on provisional basis at such rate or on such
value as may be specified by him.
(2) The payment of tax on provisional basis may be allowed, if the taxable person
executes a bond in such form as may be prescribed, and with such surety or security
as the proper officer may deem fit, binding the taxable person for payment of the
difference between the amount of tax as may be finally assessed and the amount of
tax provisionally assessed.
(3) The proper officer shall, within a period not exceeding six months from the date
of the communication of the order issued under sub-section (1), pass the final
assessment order after taking into account such information as may be required for
finalizing the assessment:
Provided that the period specified in this sub-section may, on sufficient cause
being shown and for reasons to be recorded in writing, be extended by the Joint
Commissioner or Additional Commissioner for a further period not exceeding six
months and by the Commissioner for such further period not exceeding four years.
(4) The registered person shall be liable to pay interest on any tax payable on the
supply of goods or services or both under provisional assessment but not paid on the
due date specified under sub-section (7) of Section 39 or the rules made thereunder,
at the rate specified under sub-section (1) of Section 50, from the first day after the
due date of payment of tax in respect of the said supply of goods or services or both
till the date of actual payment, whether such amount is paid before or after the
issuance of order for final assessment.
(5) Where the registered person is entitled to a refund consequent to the order of
final assessment under sub-section (3), subject to the provisions of sub-section (8) of
Section 54, interest shall be paid on such refund as provided in Section 56.
61. Scrutiny of returns.—(1) The proper officer may scrutinize the return and
related particulars furnished by the registered person to verify the correctness of the
return and inform him of the discrepancies noticed, if any, in such manner as may be
prescribed and seek his explanation thereto.
(2) In case the explanation is found acceptable, the registered person shall be
informed accordingly and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of thirty days of
being informed by the proper officer or such further period as may be permitted by
him or where the registered person, after accepting the discrepancies, fails to take the
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corrective measure in his return for the month in which the discrepancy is accepted,
the proper officer may initiate appropriate action including those under Section 65 or
Section 66 or Section 67, or proceed to determine the tax and other dues under
Section 73 or Section 74.
62. Assessment of non-filers of returns.—(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 relates.
(2) Where the registered person furnishes a valid return within thirty days of the
service of the assessment order under sub-section (1), the said assessment order shall
be deemed to have been withdrawn but the liability for payment of interest under sub-
section (1) of Section 50 or for payment of late fee under Section 47 shall continue.
63. Assessment of unregistered persons.—Notwithstanding anything to the contrary
contained in Section 73 or Section 74, where a taxable person fails to obtain
registration even though liable to do so or whose registration has been cancelled under
sub-section (2) of Section 29 but who was liable to pay tax, the proper officer may
proceed to assess the tax liability of such taxable person to the best of his judgment
for the relevant tax periods and issue an assessment order within a period of five years
from the date specified under Section 44 for furnishing of the annual return for the
financial year to which the tax not paid relates:
Provided that no such assessment order shall be passed without giving the
person an opportunity of being heard.
64. Summary assessment in certain special cases.—(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.
(2) 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 74.
Chapter XIII
AUDIT
65. Audit by tax authorities.—(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 prescribed.
(2) The officers referred to in sub-section (1) may conduct audit at the place of
business of the registered person or in their office.
(3) 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 prescribed.
(4) The audit under sub-section (1) shall be completed within a period of three
months from the date of commencement of the audit:
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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.
(5) During the course of audit, the authorised officer may require the registered
person,—
(i) to afford him the necessary facility to verify the books of account or other
documents as he may require;
(ii) to furnish such information as he may require and render assistance for
timely completion of the audit.
(6) 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 findings.
(7) 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 74.
66. Special audit.—(1) If at any stage of scrutiny, inquiry, investigation or any
other proceedings before him, any officer not below the rank of Assistant
Commissioner, having regard to the nature and complexity of the case and the interest
of revenue, is of the opinion that the value has not been correctly declared or the
credit availed is not within the normal limits, he may, with the prior approval of the
Commissioner, direct such registered person by a communication in writing to get his
records including books of account examined and audited by a chartered accountant or
a cost accountant as may be nominated by the Commissioner.
(2) The chartered accountant or cost accountant so nominated shall, within the
period of ninety days, submit a report of such audit duly signed and certified by him to
the said Assistant Commissioner mentioning therein such other particulars as may be
specified:
Provided that the Assistant Commissioner may, on an application made to him in
this behalf by the registered person or the chartered accountant or cost accountant
or for any material and sufficient reason, extend the said period by a further period
of ninety days.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the
accounts of the registered person have been audited under any other provisions of this
Act or any other law for the time being in force.
(4) 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
thereunder.
(5) The expenses of the examination and audit of records under sub-section (1),
including the remuneration of such chartered accountant or cost accountant, shall be
determined and paid by the Commissioner and such determination shall be final.
(6) Where the special audit conducted under sub-section (1) results in detection of
tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed
or utilised, the proper officer may initiate action under Section 73 or Section 74.
Chapter XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
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67. Power of inspection, search and seizure.—(1) Where the proper officer, not
below the rank of Joint Commissioner, has reasons to believe that—
(a) a taxable person has suppressed any transaction relating to supply of goods
or services or both or the stock of goods in hand, or has claimed input tax
credit in excess of his entitlement under this Act or has indulged in
contravention of any of the provisions of this Act or the rules made thereunder
to evade tax under this Act; or
(b) any person engaged in the business of transporting goods or an owner or
operator of a warehouse or a godown or any other place is keeping goods
which have escaped payment of tax or has kept his accounts or goods in such
a manner as is likely to cause evasion of tax payable under this Act,
he may authorise in writing any other officer of 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.
(2) Where the proper officer, not below the rank of Joint Commissioner, either
pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons
to believe that any goods liable to confiscation or any documents or books or things,
which in his opinion shall be useful for or relevant to any proceedings under this Act,
are secreted in any place, he may authorise in writing any other officer of 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.
(3) The documents, books or things referred to in sub-section (2) or any other
documents, books or things produced by a taxable person or any other person, which
have not been relied upon for the issue of notice under this Act or the rules made
thereunder, shall be returned to such person within a period not exceeding thirty days
of the issue of the said notice.
(4) The officer authorised under sub-section (2) shall have the power to seal or
break open the door of any premises or to break open any almirah, electronic devices,
box, receptacle in which any goods, accounts, registers or documents of the person are
suspected to be concealed, where access to such premises, almirah, electronic devices,
box or receptacle is denied.
(5) The person from whose custody any documents are seized under sub-section
(2) shall be entitled to make copies thereof or take extracts therefrom in the presence
of an authorised officer at such place and time as such officer may indicate in this
behalf except where making such copies or taking such extracts may, in the opinion of
the proper officer, prejudicially affect the investigation.
(6) The goods so seized under sub-section (2) shall be released, on a provisional
basis, upon execution of a bond and furnishing of a security, in such manner and of
such quantum, respectively, as may be prescribed or on payment of applicable tax,
interest and penalty payable, as the case may be.
(7) Where any goods are seized under sub-section (2) and no notice in respect
thereof is given within six months of the seizure of the goods, the goods shall be
returned to the person from whose possession they were seized:
Provided that the period of six months may, on sufficient cause being shown, be
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extended by the proper officer for a further period not exceeding six months.
(8) The Government may, having regard to the perishable or hazardous nature of
any goods, depreciation in the value of the goods with the passage of time, constraints
of storage space for the goods or any other relevant considerations, by notification,
specify the goods or class of goods which shall, as soon as may be after its seizure
under sub-section (2), be disposed of by the proper officer in such manner as may be
prescribed.
(9) 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 prescribed.
(10) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), 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 substituted.
(11) 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 prosecution.
(12) 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 earlier.
► Procedure for release of seized goods.—The directions for release of seized goods by
extricating the assessees from paying the applicable tax amount in cash, in exercise of writ
jurisdiction by the High Court, not valid, when mechanism already provided for in the Act and the
Rules for release, State of U.P. v. Kay Pan Fragrance (P) Ltd., (2020) 5 SCC 811.
68. Inspection of goods in movement.—(1) The Government may require the person
in charge of a conveyance carrying any consignment of goods of value exceeding such
amount as may be specified to carry with him such documents and such devices as
may be prescribed.
(2) The details of documents required to be carried under sub-section (1) shall be
validated in such manner as may be prescribed.
(3) Where any conveyance referred to in sub-section (1) is intercepted by the
proper officer at any place, he may require the person in charge of the said
conveyance to produce the documents prescribed under the said sub-section and
devices for verification, and the said person shall be liable to produce the documents
and devices and also allow the inspection of goods.
69. Power to arrest.—(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 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.
(2) Where a person is arrested under sub-section (1) for an offence specified under
sub-section (5) of Section 132, the officer authorised to arrest the person shall inform
such person of the grounds of arrest and produce him before a Magistrate within
twenty-four hours.
(3) Subject to the provisions of the Code of Criminal Procedure, 1973 (2 of 1974),—
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(a) where a person is arrested under sub-section (1) for any offence specified
under sub-section (4) of Section 132, he shall be admitted to bail or in default
of bail, forwarded to the custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the Deputy
Commissioner or the Assistant Commissioner shall, for the purpose of
releasing an arrested person on bail or otherwise, have the same powers and
be subject to the same provisions as an officer-in-charge of a police station.
70. Power to summon persons to give evidence and produce documents.—(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, 1908 (5 of 1908).
(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 (45 of
1860) of the Indian Penal Code.
71. Access to business premises.—(1) Any officer under this Act, authorised by the
proper officer not below the rank of Joint Commissioner, shall have access to any place
of business of a registered person to inspect books of account, documents, computers,
computer programs, computer software whether installed in a computer or otherwise
and such other things as he may require and which may be available at such place, for
the purposes of carrying out any audit, scrutiny, verification and checks as may be
necessary to safeguard the interest of revenue.
(2) Every person in charge of place referred to in sub-section (1) shall, on demand,
make available to the officer authorised under sub-section (1) or the audit party
deputed by the proper officer or a cost accountant or chartered accountant nominated
under Section 66—
(i) such records as prepared or maintained by the registered person and declared
to the proper officer in such manner as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial accounts, duly audited, wherever required;
(iv) cost audit report, if any, under Section 148 of the Companies Act, 2013 (18
of 2013);
(v) the income-tax audit report, if any, under Section 44-AB of the Income-tax
Act, 1961 (43 of 1961); and
(vi) 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. Officers to assist proper officers.—(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 Act.
(2) 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 Commissioner.
Chapter XV
DEMANDS AND RECOVERY
credit wrongly availed or utilised for any reason other than fraud or any wilful-
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misstatement or suppression of facts.—(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.
(2) The proper officer shall issue the notice under sub-section (1) at least three
months prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper
officer may serve a statement, containing the details of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilised for such periods
other than those covered under sub-section (1), on the person chargeable with tax.
(4) 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 notice.
(5) 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.
(6) 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.
(7) Where the proper officer is of the opinion that the amount paid under sub-
section (5) falls short of the amount actually payable, he shall proceed to issue the
notice as provided for in sub-section (1) in respect of such amount which falls short of
the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3)
pays the said tax along with interest payable under Section 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 concluded.
(9) The proper officer shall, after considering the representation, if any, made by
person chargeable with tax, determine the amount of tax, interest and a penalty
equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due
from such person and issue an order.
(10) 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 refund.
(11) 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 tax.
credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or
suppression of facts.—(1) Where it appears to the proper officer that any tax has not
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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 notice.
(2) The proper officer shall issue the notice under sub-section (1) at least six
months prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper
officer may serve a statement, containing the details of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilised for such periods
other than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be service of
notice under sub-section (1) of Section 73, subject to the condition that the grounds
relied upon in the said statement, except the ground of fraud, or any wilful-
misstatement or suppression of facts to evade tax, for periods other than those
covered under sub-section (1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under sub-section
(1), pay the amount of tax along with interest payable under Section 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 payment.
(6) The proper officer, on receipt of such information, shall not serve any notice
under sub-section (1), in respect of the tax so paid or any penalty payable under the
provisions of this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-
section (5) falls short of the amount actually payable, he shall proceed to issue the
notice as provided for in sub-section (1) in respect of such amount which falls short of
the amount actually payable.
(8) 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 cent. of such tax within thirty days of issue of the notice, all proceedings in respect
of the said notice shall be deemed to be concluded.
the person chargeable with tax, determine the amount of tax, interest and penalty due
from such person and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within a period of
five years from the due date for furnishing of annual return for the financial year to
which the tax not paid or short paid or input tax credit wrongly availed or utilised
relates to or within five years from the date of erroneous refund.
(11) 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 concluded.
Explanation 1.—For the purposes of Section 73 and this section,—
(i) the expression “all proceedings in respect of the said notice” shall not include
proceedings under Section 132;
(ii) 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
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main person have been concluded under Section 73 or Section 74, the
proceedings against all the persons liable to pay penalty under 96 [Sections
122 and 125] are deemed to be concluded.
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. General provisions relating to determination of tax.—(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
be.
(2) 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 73.
(3) Where any order is required to be issued in pursuance of the direction of the
Appellate Authority or Appellate Tribunal or a court, such order shall be issued within
two years from the date of communication of the said direction.
(4) An opportunity of hearing shall be granted where a request is received in
writing from the person chargeable with tax or penalty, or where any adverse decision
is contemplated against such person.
(5) The proper officer shall, if sufficient cause is shown by the person chargeable
with tax, grant time to the said person and adjourn the hearing for 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.
(6) The proper officer, in his order, shall set out the relevant facts and the basis of
his decision.
(7) The amount of tax, interest and penalty demanded in the order shall not be in
excess of the amount specified in the notice and no demand shall be confirmed on the
grounds other than the grounds specified in the notice.
(8) Where the Appellate Authority or Appellate Tribunal or court modifies the
amount of tax determined by the proper officer, the amount of interest and penalty
shall stand modified accordingly, taking into account the amount of tax so modified.
(9) The interest on the tax short paid or not paid shall be payable whether or not
specified in the order determining the tax liability.
(10) 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 74.
(11) 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 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
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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.
(12) 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 79.
97 [Explanation.—For the purposes of this sub-section, the expression “self-assessed
tax” shall include the tax payable in respect of details of outward supplies furnished
under Section 37, but not included in the return furnished under Section 39.]
(13) 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. Tax collected but not paid to Government.—(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 not.
(2) 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 Act.
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 determined.
(4) 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 Government.
(5) An opportunity of hearing shall be granted where a request is received in
writing from the person to whom the notice was issued to show cause.
(6) The proper officer shall issue an order within one year from the date of issue of
the notice.
(7) Where the issuance of order is stayed by an order of the court or Appellate
Tribunal, the period of such stay shall be excluded in computing the period of one
year.
(8) The proper officer, in his order, shall set out the relevant facts and the basis of
his decision.
(9) 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).
(10) 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 amount.
(11) 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 54.
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77. Tax wrongfully collected and paid to Central Government or State Government.
—(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 prescribed.
(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. Initiation of recovery proceedings.—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. Recovery of tax.—(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:—
(a) 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;
(b) 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;
(c) (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;
(ii) 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;
(iii) 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;
(iv) the officer issuing a notice under sub-clause (i) may, at any time, amend or
revoke such notice or extend the time for making any payment in pursuance
of the notice;
(v) any person making any payment in compliance with a notice issued under
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sub-clause (i) shall be deemed to have made the payment under the authority
of the person in default and such payment being credited to the Government
shall be deemed to constitute a good and sufficient discharge of the liability of
such person to the person in default to the extent of the amount specified in
the receipt;
(vi) any person discharging any liability to the person in default after service on
him of the notice issued under sub-clause (i) shall be personally liable to the
Government to the extent of the liability discharged or to the extent of the
liability of the person in default for tax, interest and penalty, whichever is
less;
(vii) 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;
(d) the proper officer may, in accordance with the rules to be made in this
behalf, distrain any movable or immovable property belonging to or under the
control of such person, and detain the same until the amount payable is paid;
and in case, any part of the said amount payable or of the cost of the distress
or keeping 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;
(e) 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;
(f) Notwithstanding anything contained in the Code of Criminal Procedure, 1973
(2 of 1974), the proper officer may file an application to the appropriate
Magistrate and such Magistrate shall proceed to recover from such person the
amount specified thereunder as if it were a fine imposed by him.
(2) Where the terms of any bond or other instrument executed under this Act or
any rules or regulations made thereunder provide that any amount due under such
instrument may be recovered in the manner laid down in sub-section (1), the amount
may, without prejudice to any other mode of recovery, be recovered in accordance
with the provisions of that sub-section.
(3) Where any amount of tax, interest or penalty is payable by a person to the
Government under any of the provisions of this Act or the rules made thereunder and
which remains unpaid, the proper officer of 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 Government.
(4) Where the amount recovered under sub-section (3) is less than the amount due
to the Central Government and State Government, the amount to be credited to the
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account of the respective Governments shall be in proportion to the amount due to
each such Government.
98 [Explanation.—For the purposes of this section, the word person shall include
“distinct persons” as referred to in sub-section (4) or, as the case may be, sub-section
(5) of Section 25.]
80. Payment of tax and other amount in instalments.—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. Transfer of property to be void in certain cases.—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. Tax to be first charge on property.—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 (31 of 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 person.
83. Provisional attachment to protect revenue in certain cases.—99 [(1) Where, after
the initiation of any proceeding under Chapter XII, Chapter XIV or Chapter XV, 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 or
any person specified in sub-section (1A) of Section 122, in such manner as may be
prescribed.]
(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. Continuation and validation of certain recovery proceedings.—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—
(a) 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,
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without the service of any fresh notice of demand, be continued from the
stage at which such proceedings stood immediately before such disposal;
(b) where such Government dues are reduced in such appeal, revision or in other
proceedings—
(i) it shall not be necessary for the Commissioner to serve upon the taxable
person a fresh notice of demand;
(ii) the Commissioner shall give intimation of such reduction to him and to the
appropriate authority with whom recovery proceedings is pending;
(iii) 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 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. Liability in case of transfer of business.—(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 thereafter.
(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. Liability of agent and principal.—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 Act.
87. Liability in case of amalgamation or merger of companies.—(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 accordingly.
(2) Notwithstanding anything contained in the said order, for the purposes of this
Act, the said two or more companies shall be treated as distinct companies for the
period up to the date of the said order and the registration certificates of the said
companies shall be cancelled with effect from the date of the said order.
88. Liability in case of company in liquidation.—(1) When any company is being
wound up whether under the orders of a court or Tribunal or otherwise, every person
appointed as receiver of any assets of a company (hereafter in this section referred to
as the “liquidator”), shall, within thirty days after his appointment, give intimation of
his appointment to the Commissioner.
(2) The Commissioner shall, after making such inquiry or calling for such
information as he may deem fit, notify the liquidator within three months from the
date on which he receives intimation of the appointment of the liquidator, the amount
which in the opinion of the Commissioner would be sufficient to provide for any tax,
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interest or penalty which is then, or is likely thereafter to become, payable by the
company.
(3) When any private company is wound up and any tax, interest or penalty
determined under this Act on the company for any period, whether before or in the
course of or after its liquidation, cannot be 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 company.
89. Liability of directors of private company.—(1) Notwithstanding anything
contained in the Companies Act, 2013 (18 of 2013) where any tax, interest or penalty
due from a private company in respect of any supply of goods or services or both for
any period cannot be recovered, then, every person who was a director of the private
company during such period shall, jointly and severally, be liable for the payment of
such tax, interest or penalty unless he proves that the non-recovery cannot be
attributed to any gross neglect, misfeasance or breach of duty on his part in relation to
the affairs of the company.
(2) Where a private company is converted into a public company and the tax,
interest or penalty in respect of any supply of goods or services or both for any period
during which such company was a private company cannot be recovered before such
conversion, then, nothing contained in sub-section (1) shall apply to any person who
was a director of such private company in relation to any tax, interest or penalty in
respect of such supply of goods or services or both of such private company:
Provided that nothing contained in this sub-section shall apply to any personal
penalty imposed on such director.
90. Liability of partners of firm to pay tax.—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. Liability of guardians, trustees, etc.—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 accordingly.
92.Liability of Court of Wards, etc.—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
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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 accordingly.
93. Special provisions regarding liability to pay tax, interest or penalty in certain
cases.—(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016
(31 of 2016) where a person, liable to pay tax, interest or penalty under this Act, dies,
then—
(a) 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
(b) if the business carried on by the person is discontinued, whether before or
after his death, his legal representative shall be liable to pay, out of the estate
of the deceased, to the extent to which the estate is capable of meeting the
charge, the tax, interest or penalty due from such person under this Act,
whether such tax, interest or penalty has been determined before his death but has
remained unpaid or is determined after his death.
(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of
2016), where a taxable person, liable to pay tax, interest or penalty under this Act, is
a Hindu Undivided Family or an association of persons and the property of the Hindu
Undivided Family or the association of persons is partitioned amongst the various
members or groups of members, then, each member or group of members shall,
jointly and severally, be liable to pay the tax, interest or penalty due from the taxable
person under this Act up to the time of the partition whether such tax, penalty or
interest has been determined before partition but has remained unpaid or is
determined after the partition.
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
dissolution.
2016), where a taxable person liable to pay tax, interest or penalty under this Act,—
(a) is the guardian of a ward on whose behalf the business is carried on by the
guardian; or
(b) is a trustee who carries on the business under a trust for a beneficiary,
then, if the guardianship or trust is terminated, the ward or the beneficiary shall be
liable to pay the tax, interest or penalty due from the taxable person upto the time of
the termination of the guardianship or trust, whether such tax, interest or penalty has
been determined before the termination of guardianship or trust but has remained
unpaid or is determined thereafter.
94. Liability in other cases.—(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—
(a) 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
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(b) every person who, at the time of such discontinuance, was a partner of such
firm, or a member of such association or family, shall, notwithstanding such
discontinuance, jointly and severally, be liable for the payment of tax and
interest determined and penalty imposed and payable by such firm,
association or family, whether such tax and interest has been determined or
penalty imposed prior to or after such discontinuance and subject as
aforesaid, the provisions of this Act shall, so far as may be, apply as if every
such person or partner or member were himself a taxable person.
(2) Where a change has occurred in the constitution of a firm or an association of
persons, the partners of the firm or members of association, as it existed before and as
it exists after the reconstitution, shall, without prejudice to the provisions of Section
90, jointly and severally, be liable to pay tax, interest or penalty due from such firm or
association for any period before its reconstitution.
(3) The provisions of sub-section (1) shall, so far as may be, apply where the
taxable person, being a firm or association of persons is dissolved or where the taxable
person, being a Hindu Undivided Family, has effected partition with respect to the
business carried on by it and accordingly references in that sub-section to
discontinuance shall be construed as reference to dissolution or to partition.
Explanation.—For the purposes of this Chapter,—
(i) a “Limited Liability Partnership” formed and registered under the provisions of
the Limited Liability Partnership Act, 2008 (6 of 2009) shall also be considered
as a firm;
(ii) “court” means the District Court, High Court or Supreme Court.
Chapter XVII
ADVANCE RULING
95. Definitions.—In this Chapter, unless the context otherwise requires,—
(a) “advance ruling” means a decision provided by the Authority or the Appellate
Authority 100 [or the National Appellate Authority] to an applicant on matters or
on questions specified in sub-section (2) of Section 97 or sub-section (1) of
Section 100 101 [or of Section 101-C], in relation to the supply of goods or
services or both being undertaken or proposed to be undertaken by the
applicant;
(b) “Appellate Authority” means the Appellate Authority for Advance Ruling
referred to in Section 99;
(c) “applicant” means any person registered or desirous of obtaining registration
under this Act;
(d) “application” means an application made to the Authority under sub-section
(1) of Section 97;
(e) “Authority” means the Authority for Advance Ruling referred to in Section 96.
102
[(f) “National Appellate Authority” means the National Appellate Authority for
Advance Ruling referred to in Section 101-A.]
96. Authority for advance ruling.—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 territory.
97. Application for advance ruling.—(1) An applicant desirous of obtaining an
advance ruling under this Chapter may make an application in such form and manner
and accompanied by such fee as may be prescribed, stating the question on which the
advance ruling is sought.
(2) The question on which the advance ruling is sought under this Act, shall be in
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respect of,—
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods
or services or both amounts to or results in a supply of goods or services or
both, within the meaning of that term.
98. Procedure on receipt of application.—(1) On receipt of an application, the
Authority shall cause a copy thereof to be forwarded to the concerned officer and, if
necessary, call upon him to furnish the relevant records:
Provided that where any records have been called for by the Authority in any
case, such records shall, as soon as possible, be returned to the said concerned
officer.
(2) The Authority may, after examining the application and the records called for
and after hearing the applicant or his authorised representative and the concerned
officer or his authorised representative, by order, either admit or reject the application
Provided that the Authority shall not admit the application where the question
raised in the application is already pending or decided in any proceedings in the case
of an applicant under any of the provisions of this Act:
Provided further that no application shall be rejected under this sub-section
unless an opportunity of hearing has been given to the applicant:
Provided also that where the application is rejected, the reasons for such rejection
shall be specified in the order.
(3) A copy of every order made under sub-section (2) shall be sent to the applicant
and to the concerned officer.
(4) Where an application is admitted under sub-section (2), the Authority shall,
after examining such further material as may be placed before it by the applicant or
obtained by the Authority and after providing an opportunity of being heard to the
applicant or his authorised representative as well as to the concerned officer or his
authorised representative, pronounce its advance ruling on the question specified in
the application.
(5) Where the members of the Authority differ on any question on which the
advance ruling is sought, 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 question.
(6) The Authority shall pronounce its advance ruling in writing within ninety days
from the date of receipt of application.
(7) 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
pronouncement.
99. Appellate Authority for Advance Ruling.—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 territory.
100. Appeal to Appellate Authority.—(1) The concerned officer, the jurisdictional
officer or an applicant aggrieved by any advance ruling pronounced under sub-section
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(4) of Section 98, may appeal to the Appellate Authority.
(2) Every appeal under this section shall be filed within a period of thirty days from
the date on which the ruling sought to be appealed against is communicated to the
concerned officer, the jurisdictional officer and the applicant:
Provided that the Appellate Authority may, if it is satisfied that the appellant was
prevented by a sufficient cause from presenting the appeal within the said period of
thirty days, allow it to be presented within a further period not exceeding thirty
days.
(3) Every appeal under this section shall be in such form, accompanied by such fee
and verified in such manner as may be prescribed.
101. Orders of Appellate Authority.—(1) The Appellate Authority may, after giving
the parties to the appeal or reference an opportunity of being heard, pass such order
as it thinks fit, confirming or modifying the ruling appealed against or referred to.
(2) The order referred to in sub-section (1) shall be passed within a period of ninety
days from the date of filing of the appeal under Section 100 or a reference under sub-
section (5) of Section 98.
(3) Where the members of the Appellate Authority differ on any point or points
referred to in appeal or reference, it shall be deemed that no advance ruling can be
issued in respect of the question under the appeal or reference.
(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed
by the Members and certified in such manner as may be prescribed shall be sent to
the applicant, the concerned officer, the jurisdictional officer and to the Authority after
such pronouncement.
103 [101-A. Constitution of National Appellate Authority for Advance Ruling.—(1) The
Government shall, on the recommendations of the Council, by notification, constitute,

with effect from such date as may be specified therein, an Authority known as the
National Appellate Authority for Advance Ruling for hearing appeals made under
Section 101-B.
(2) The National Appellate Authority shall consist of—
(i) the President, who 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;
(ii) a Technical Member (Centre) who 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;
(iii) a Technical Member (State) who is or has been an officer of the State
Government not below the rank of Additional Commissioner of Value Added
Tax or the Additional Commissioner of State tax with at least three years of
experience in the administration of an existing law or the State Goods and
Services Tax Act or in the field of finance and taxation.
(3) The President of the National Appellate Authority 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 the reason of his death, resignation or otherwise, the senior most
Member of the National Appellate Authority 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 Appellate Authority shall discharge the functions of the President until the
date on which the President resumes his duties.
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(4) The Technical Member (Centre) and Technical Member (State) of the National
Appellate Authority shall be appointed by the Government on the recommendations of
a Selection Committee consisting of such persons and in such manner as may be
prescribed.
(5) No appointment of the Members of the National Appellate Authority shall be
invalid merely by the reason of any vacancy or defect in the constitution of the
Selection Committee.
(6) Before appointing any person as the President or Members of the National
Appellate Authority, the 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 Member.
(7) The salary, allowances and other terms and conditions of service of the
President and the Members of the National Appellate Authority shall be such as may
be prescribed:
Provided that neither salary and allowances nor other terms and conditions of
service of the President or Members of the National Appellate Authority shall be
varied to their disadvantage after their appointment.
(8) The President of the National Appellate Authority 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 also be eligible for reappointment.
(9) The Technical Member (Centre) or Technical Member (State) of the National
Appellate Authority 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 also be eligible for reappointment.
(10) The President or any Member may, by notice in writing under his hand
addressed to the Government, resign from his office:
Provided that the President or Member shall continue to hold office until the
expiry of three months from the date of receipt of such notice by the 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.
(11) The Government may, after consultation with the Chief Justice of India,
remove from the office such President or Member, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of such Government
involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President or
Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially
his functions as such President or Member; or
(e) has so abused his position as to render his continuance in office prejudicial to
the public interest:
Provided that the 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.
(12) Without prejudice to the provisions of sub-section (11), the President and
Technical Members of the National Appellate Authority shall not be removed from their
office except by an order made by the Government on the ground of proven
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
Government and such President or Member had been given an opportunity of being
heard.
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(13) The Government, with the concurrence of the Chief Justice of India, may
suspend from office, the President or Technical Members of the National Appellate
Authority in respect of whom a reference has been made to the Judge of the Supreme
Court under sub-section (12).
(14) Subject to the provisions of Article 220 of the Constitution, the President or
Members of the National Appellate Authority, on ceasing to hold their office, shall not
be eligible to appear, act or plead before the National Appellate Authority where he
was the President or, as the case may be, a Member.]
104 [101-B. Appeal to National Appellate Authority.—(1) Where, in respect of the
questions referred to in sub-section (2) of Section 97, conflicting Advance Rulings are
given by the Appellate Authorities of two or more States or Union territories or both
under sub-section (1) or sub-section (3) of Section 101, any officer authorised by the
Commissioner or an applicant, being distinct person referred to in Section 25
aggrieved by such Advance Ruling, may prefer an appeal to National Appellate
Authority:
Provided that the officer shall be from the States in which such Advance Rulings
have been given.
(2) Every appeal under this section shall be filed within a period of thirty days from
the date on which the ruling sought to be appealed against is communicated to the
applicants, concerned officers and jurisdictional officers:
Provided that the officer authorised by the Commissioner may file appeal within a
period of ninety days from the date on which the ruling sought to be appealed
against is communicated to the concerned officer or the jurisdictional officer:
Provided further that the National 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, or as the case may be, ninety days, allow such appeal
to be presented within a further period not exceeding thirty days.
Explanation.—For removal of doubts, it is clarified that the period of thirty days or
as the case may be, ninety days shall be counted from the date of communication of
the last of the conflicting rulings sought to be appealed against.
(3) Every appeal under this section shall be in such form, accompanied by such fee
and verified in such manner as may be prescribed.]
105 [101-C.
Order of National Appellate Authority.—(1) The National Appellate
Authority may, after giving an opportunity of being heard to the applicant, the officer
authorised by the Commissioner, all Principal Chief Commissioners, Chief
Commissioners of Central tax and Chief Commissioner and Commissioner of State tax
of all States and Chief Commissioner and Commissioner of Union territory tax of all
Union territories, pass such order as it thinks fit, confirming or modifying the rulings
appealed against.
(2) If the members of the National Appellate Authority differ in opinion on any
point, it shall be decided according to the opinion of the majority.
(3) The order referred to in sub-section (1) shall be passed as far as possible within
a period of ninety days from the date of filing of the appeal under Section 101-B.
(4) A copy of the Advance Ruling pronounced by the National Appellate Authority
shall be duly signed by the Members and certified in such manner as may be
prescribed and shall be sent to the applicant, the officer authorised by the
Commissioner, the Board, the Chief Commissioner and Commissioner of State tax of
all States and Chief Commissioner and Commissioner of Union territory tax of all Union
territories and to the Authority or Appellate Authority, as the case may be, after such
pronouncement.]
102. Rectification of advance ruling.—The Authority or the Appellate Authority 106 [or
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the National Appellate Authority] may amend any order passed by it under Section 98
or Section 101 107 [or Section 101-C, respectively,] 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 108 [or the National Appellate Authority] on its own accord, or is brought to its
notice by the concerned officer, the jurisdictional officer, the applicant 109 [,appellant,
the Authority or the Appellate Authority] 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. Applicability of advance ruling.—(1) The advance ruling pronounced by the
Authority or the Appellate Authority under this Chapter shall be binding only—
(a) on the applicant who had sought it in respect of any matter referred to in sub
-section (2) of Section 97 for advance ruling;
(b) on the concerned officer or the jurisdictional officer in respect of the
applicant. .
110 [(1-A) The Advance Ruling pronounced by the National Appellate Authority under
this Chapter shall be binding on—

(a) the applicants, being distinct persons, who had sought the ruling under sub-
section (1) of Section 101-B and all registered persons having the same
Permanent Account Number issued under the Income-tax Act, 1961 (43 of
1961);
(b) the concerned officers and the jurisdictional officers in respect of the
applicants referred to in clause (a) and the registered persons having the
same Permanent Account Number issued under the Income-tax Act, 1961 (43
of 1961).]
(2) The advance ruling referred to in sub-section (1) 111 [and sub-section (1A)] shall
be binding unless the law, facts or circumstances supporting the original advance
ruling have changed.
104. Advance ruling to be void in certain circumstances.—(1) Where the Authority
or the Appellate Authority 112 [or the National Appellate Authority] finds that advance
ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1)
of Section 101 113 [or under Section 101-C] 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. 114 [Powers of Authority, Appellate Authority and National Appellate Authority.
—(1) The Authority or the Appellate Authority 115 [or the National Appellate Authority]
and National Appellate Authority] shall, for the purpose of exercising its powers
regarding—
(a) discovery and inspection;
(b) enforcing the attendance of any person and examining him on oath;
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(c) issuing commissions and compelling production of books of account and other
records,
have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of
1908).
(2) The Authority or the Appellate Authority 116 [or the National 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 (2 of 1974), 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 (45 of 1860) of the Indian Penal Code.
106. 117 [Procedure of Authority, Appellate Authority and National Appellate
Authority].—The Authority or the Appellate Authority 118 [or the National Appellate
Authority] shall, subject to the provisions of this Chapter, have power to regulate its
own procedure.
Chapter XVIII
APPEALS AND REVISION
107. Appeals to Appellate Authority.—(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.
(2) 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 order.
(3) Where, in pursuance of an order under sub-section (2), the authorised officer
makes an application to the Appellate Authority, such application shall be dealt with
by the Appellate Authority as if it were an appeal made against the decision or order of
the adjudicating authority and such authorised officer were an appellant and the
provisions of this Act relating to appeals shall apply to such application.
(4) The Appellate Authority may, if he is satisfied that the appellant was prevented
by sufficient cause from presenting the appeal within the aforesaid period of three
months or six months, as the case may be, allow it to be presented within a further
period of one month.
(5) Every appeal under this section shall be in such form and shall be verified in
(6) No appeal shall be filed under sub-section (1), unless the appellant has paid—
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising
from the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of tax in dispute
arising from the said order, 119 [subject to a maximum of twenty-five crore
rupees,] in relation to which the appeal has been filed:
120
[Provided that no appeal shall be filed against an order under sub-section (3) of
Section 129, unless a sum equal to twenty-five per cent. of the penalty has been paid
by the appellant.]
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(7) Where the appellant has paid the amount under sub-section (6), the recovery
proceedings for the balance amount shall be deemed to be stayed.
(8) The Appellate Authority shall give an opportunity to the appellant of being
heard.
(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing
of an appeal, grant time to the parties or any of them and adjourn the hearing of the
appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a
party during hearing of the appeal.
(10) The Appellate Authority may, at the time of hearing of an appeal, allow an
appellant to add any ground of appeal not specified in the grounds of appeal, if it is
satisfied that the omission of that ground from the grounds of appeal was not wilful or
unreasonable.
(11) The Appellate Authority shall, after making such further inquiry as may be
necessary, pass such order, as it thinks just and proper, confirming, modifying or
annulling the decision or order appealed against but shall not refer the case back to
the adjudicating authority that passed the said decision or order:
Provided that an order enhancing any fee or penalty or fine in lieu of confiscation
or confiscating goods of greater value or reducing the amount of refund or input tax
credit shall not be passed unless the appellant has been given a reasonable
opportunity of showing cause against the proposed order:
Provided further that where the Appellate Authority is of the opinion that any tax
has not been paid or short-paid or erroneously refunded, or where input tax credit has
been wrongly availed or utilised, no order requiring the appellant to pay such tax or
input tax credit shall be passed unless the appellant is given notice to show cause
against the proposed order and the order is passed within the time limit specified
under Section 73 or Section 74.
(12) The order of the Appellate Authority disposing of the appeal shall be in writing
and shall state the points for determination, the decision thereon and the reasons for
such decision.
(13) The Appellate Authority shall, where it is possible to do so, hear and decide
every appeal within a period of one year from the date on which it is filed:
Provided that where the issuance of order is stayed by an order of a court or
Tribunal, the period of such stay shall be excluded in computing the period of one
year.
(14) On disposal of the appeal, the Appellate Authority shall communicate the order
passed by it to the appellant, respondent and to the adjudicating authority.
(15) A copy of the order passed by the Appellate Authority shall also be sent to the
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 behalf.
(16) 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
parties.
108. Powers of Revisional Authority.—(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
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the interest of revenue and is illegal or improper or has not taken into account certain
material facts, whether available at the time of issuance of the said order or not or in
consequence of an observation by the Comptroller and Auditor General of India, he
may, if necessary, stay the operation of such decision or order for such period as he
deems fit and after giving the person concerned an opportunity of being heard and
after making such further inquiry as may be necessary, pass such order, as he thinks
just and proper, including enhancing or modifying or annulling the said decision or
order.
(2) The Revisional Authority shall not exercise any power under sub-section (1), if—
(a) the order has been subject to an appeal under Section 107 or Section 112 or
Section 117 or Section 118; or
(b) the period specified under sub-section (2) of Section 107 has not yet expired
or more than three years have expired after the passing of the decision or
order sought to be revised; or
(c) the order has already been taken for revision under this section at an earlier
stage; or
(d) the order has been passed in exercise of the powers under sub-section (1):
Provided that the Revisional Authority may pass an order under sub-section
(1) on any point which has not been raised and decided in an appeal referred
to in clause (a) of sub-section (2), before the expiry of a period of one year
from the date of the order in such appeal or before the expiry of a period of
three years referred to in clause (b) of that sub-section, whichever is later.
(3) Every order passed in revision under sub-section (1) shall, subject to the
provisions of Section 113 or Section 117 or Section 118, be final and binding on the
parties.
(4) If the said decision or order involves an issue on which the Appellate Tribunal or
the High Court has given its decision in some other proceedings and an appeal to the
High Court or the Supreme Court against such decision of the Appellate Tribunal or the
High Court is pending, the period spent between the date of the decision of the
Appellate Tribunal and the date of the decision of the High Court or the date of the
decision of the High Court and the date of the decision of the Supreme Court shall be
excluded in computing the period of limitation referred to in clause (b) of sub-section
(2) where proceedings for revision have been initiated by way of issue of a notice
under this section.
(5) Where the issuance of an order under sub-section (1) is stayed by the order of a
court or Appellate Tribunal, the period of such stay shall be excluded in computing the
period of limitation referred to in clause (b) of sub-section (2).
(6) For the purposes of this section, the term,—
(i) “record” shall include all records relating to any proceedings under this Act
available at the time of examination by the Revisional Authority;
(ii) “decision” shall include intimation given by any officer lower in rank than the
Revisional Authority.
109. Constitution of Appellate Tribunal and Benches thereof.—(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 Authority.
(2) 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”).
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121
[(3) 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).]
(4) 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).
(5) 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.
(6) The Government shall, by notification, specify for each State or Union territory
122
[* * *], 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:
123 [* * *]
Provided further 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:
124
[Provided also that] the Government may, on receipt of a request from any
State, or on its own motion for a Union territory, notify the Appellate Tribunal in a
State to act as the Appellate Tribunal for any other State or Union territory, as may
be recommended by the Council, subject to such terms and conditions as may be
prescribed.
(7) The State Bench or Area Benches shall have jurisdiction to hear appeals against
the orders passed by the Appellate Authority or the Revisional Authority in the cases
involving matters other than those referred to in sub-section (5).
(8) The President and the State President shall, by general or special order,
distribute the business or transfer cases among Regional Benches or, as the case may
be, Area Benches in a State.
125
[(9) 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.]
(10) 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.
(11) If the Members of the National Bench, Regional Benches, State Bench or Area
Benches differ in opinion on any point or points, it shall be decided according to the
opinion of the majority, if there is a majority, but if the Members are equally divided,
they shall state the point or points on which they differ, and the case shall be referred
by the President or as the case may be, State President for hearing on such point or
points to one or more of the other Members of the National Bench, Regional Benches,
State Bench or Area Benches and such point or points shall be decided according to
the opinion of the majority of Members who have heard the case, including those who
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first heard it.
(12) The Government, in consultation with the President may, for the administrative
convenience, transfer—
(a) any Judicial Member or a Member Technical (State) from one Bench to
another Bench, whether National or Regional; or
(b) any Member Technical (Centre) from one Bench to another Bench, whether
National, Regional, State or Area.
(13) The State Government, in consultation with the State President may, for the
administrative convenience, transfer a Judicial Member or a Member Technical (State)
from one Bench to another Bench within the State.
(14) 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 Tribunal.
110. President and Members of Appellate Tribunal, their qualification, appointment,
conditions of service, etc.—(1) A person shall not be qualified for appointment as—
(a) 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;
(b) a Judicial Member, unless he—
(i) has been a Judge of the High Court; or
(ii) is or has been a District Judge qualified to be appointed as a Judge of a High
Court; or
(iii) 126 [is or has been a Member of Indian Legal Service and has held a post not
less than Additional Secretary for three years;]
(c) 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;
(d) a Technical Member (State) unless he is or has been an officer of the State
Government not below the rank of Additional Commissioner of Value Added
Tax or the State goods and services tax or such rank as may be notified by the
concerned State Government on the recommendations of the Council with at
least three years of experience in the administration of an existing law or the
State Goods and Services Tax Act or in the field of finance and taxation.
(2) The President and the Judicial Members of the National Bench and the Regional
Benches shall be appointed by the Government after consultation with the Chief
Justice of India or his nominee:
Provided that in the event of the occurrence of any vacancy in the office of the
President by reason of his death, resignation or otherwise, the senior most Member
of the National Bench shall act as the President until the date on which a new
President, appointed in accordance with the provisions of this Act to fill such
vacancy, enters upon his office:
Provided further that where the President is unable to discharge his functions owing
to absence, illness or any other cause, the senior most Member of the National Bench
shall discharge the functions of the President until the date on which the President
resumes his duties.
(3) The Technical Member (Centre) and Technical Member (State) of the National
Bench and Regional Benches shall be appointed by the Government on the
recommendations of a Selection Committee consisting of such persons and in such
(4) 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
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State or his nominee.
(5) 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.
(6) 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
Committee.
(7) 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 Member.
(8) 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.
(9) 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 reappointment.
(10) 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 reappointment.
(11) 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 reappointment.
(12) 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.
(13) 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—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of such Government
involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President,
State President or Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially
his functions as such President, State President or Member; or
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(e) has so abused his position as to render his continuance in office prejudicial to
the public interest:
Provided that the President, State President or the Member shall not be
removed on any of the grounds specified in clauses (d) and (e), unless he has
been informed of the charges against him and has been given an opportunity
of being heard.
(14) Without prejudice to the provisions of sub-section (13),—
(a) 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;
(b) the Judicial Member or Technical Member (State) of the State Bench or Area
Benches shall not be removed from their office except by an order made by
the State Government on the ground of proved misbehaviour or incapacity
after an inquiry made by a Judge of the concerned High Court nominated by
the Chief Justice of the concerned High Court on a reference made to him by
the State Government and of which the said Member had been given an
opportunity of being heard.
(15) The Central Government, with the concurrence of the Chief Justice of India,
may suspend from office, the President or a Judicial or Technical Members of the
National Bench or the Regional Benches or the Technical Member (Centre) of the State
Bench or Area Benches in respect of whom a reference has been made to the Judge of
the Supreme Court under sub-section (14).
(16) 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).
(17) 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 Member.
111. Procedure before Appellate Tribunal.—(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 (5 of 1908), but shall be
guided by the principles of natural justice and subject to the other provisions of this
Act and the rules made thereunder, the Appellate Tribunal shall have power to
regulate its own procedure.
(2) The Appellate Tribunal shall, for the purposes of discharging its functions under
this Act, have the same powers as are vested in a civil court under the Code of Civil
Procedure, 1908 (5 of 1908) while trying a suit in respect of the following matters,
namely:—
(a) summoning and enforcing the attendance of any person and examining him
on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) subject to the provisions of Sections 123 and 124 of the Indian Evidence Act,
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1872 (1 of 1872), requisitioning any public record or document or a copy of
such record or document from any office;
(e) issuing commissions for the examination of witnesses or documents;
(f) dismissing a representation for default or deciding it ex parte;
(g) setting aside any order of dismissal of any representation for default or any
order passed by it ex parte; and
(h) any other matter which may be prescribed.
(3) Any order made by the Appellate Tribunal may be enforced by it in the same
manner as if it were a decree made by a court in a suit pending therein, and it shall be
lawful for the Appellate Tribunal to send for execution of its orders to the court within
the local limits of whose jurisdiction,—
(a) in the case of an order against a company, the registered office of the
company is situated; or
(b) in the case of an order against any other person, the person concerned
voluntarily resides or carries on business or personally works for gain.
(4) All proceedings before the Appellate Tribunal shall be deemed to be judicial
proceedings within the meaning of Sections 193 and 228, and for the purposes of
Section 196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be
deemed to be civil court for the purposes of Section 195 and Chapter XXVI of the Code
of Criminal Procedure, 1973 (2 of 1974).
112. Appeals to Appellate Tribunal.—(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 Goods and Services Tax Act may appeal to the
Appellate Tribunal against such order within three months from the date on which the
order sought to be appealed against is communicated to the person preferring the
appeal.
(2) The Appellate Tribunal may, in its discretion, refuse to admit any such appeal
where the tax or input tax credit involved or the difference in tax or input tax credit
involved or the amount of fine, fee or penalty determined by such order, does not
exceed fifty thousand rupees.
(3) 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 order.
(4) Where in pursuance of an order under sub-section (3) the authorised officer
makes an application to the Appellate Tribunal, such application shall be dealt with by
the Appellate Tribunal as if it were an appeal made against the order under sub-
section (11) of Section 107 or under sub-section (1) of Section 108 and the provisions
of this Act shall apply to such application, as they apply in relation to appeals filed
under sub-section (1).
(5) On receipt of notice that an appeal has been preferred under this section, the
party against whom the appeal has been preferred may, notwithstanding that he may
not have appealed against such order or any part thereof, file, within forty-five days of
the receipt of notice, a memorandum of cross-objections, verified in the prescribed
manner, against any part of the order appealed against and such memorandum shall
be disposed of by the Appellate Tribunal, as if it were an appeal presented within the
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time specified in sub-section (1).
(6) The Appellate Tribunal may admit an appeal within three months after the
expiry of the period referred to in sub-section (1), or permit the filing of a
memorandum of cross-objections within forty-five days after the expiry of the period
referred to in sub-section (5) if it is satisfied that there was sufficient cause for not
presenting it within that period.
(7) An appeal to the Appellate Tribunal shall be in such form, verified in such
manner and shall be accompanied by such fee, as may be prescribed.
(8) No appeal shall be filed under sub-section (1), unless the appellant has paid—
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising
from the impugned order, as is admitted by him, and
(b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in
addition to the amount paid under sub-section (6) of Section 107, arising
from the said order, 127 [subject to a maximum of fifty crore rupees,] in
relation to which the appeal has been filed.
(9) Where the appellant has paid the amount as per sub-section (8), the recovery
proceedings for the balance amount shall be deemed to be stayed till the disposal of
the appeal.
(10) Every application made before the Appellate Tribunal,—
(a) in an appeal for rectification of error or for any other purpose; or
(b) for restoration of an appeal or an application,
shall be accompanied by such fees as may be prescribed.
113. Orders of Appellate Tribunal.—(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 necessary.
(2) 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.
(3) 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.
(4) 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 filed.
(5) 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 tax.
(6) 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 parties.
114. Financial and administrative powers of President.—The President shall exercise
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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. Interest on refund of amount paid for admission of appeal.—Where an amount
paid by the appellant under sub-section (6) of Section 107 or sub-section (8) of
Section 112 is required to be refunded consequent to any order of the Appellate
Authority or of the Appellate Tribunal, interest at the rate specified under Section 56
shall be payable in respect of such refund from the date of payment of the amount till
the date of refund of such amount.
116. Appearance by authorised representative.—(1) Any person who is entitled or
required to appear before an officer appointed under this Act, or the Appellate
Authority or the Appellate Tribunal in connection with any proceedings under this Act,
may, otherwise than when required under this Act to appear personally for
examination on oath or affirmation, subject to the other provisions of this section,
appear by an authorised representative.
(2) For the purposes of this Act, the expression “authorised representative” shall
mean a person authorised by the person referred to in sub-section (1) to appear on his
behalf, being—
(a) his relative or regular employee; or
(b) an advocate who is entitled to practice in any court in India, and who has not
been debarred from practicing before any court in India; or
(c) any chartered accountant, a cost accountant or a company secretary, who
holds a certificate of practice and who has not been debarred from practice; or
(d) a retired officer of the Commercial Tax Department of any State Government
or Union territory or of the Board who, during his service under the
Government, had worked in a post not below the rank than that of a Group-B
Gazetted officer for a period of not less than two years:
Provided that such officer shall not be entitled to appear before any
proceedings under this Act for a period of one year from the date of his
retirement or resignation; or
(e) any person who has been authorised to act as a goods and services tax
practitioner on behalf of the concerned registered person.
(3) No person,—
(a) who has been dismissed or removed from Government service; or
(b) who is convicted of an offence connected with any proceedings under this
Act, the 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
(c) who is found guilty of misconduct by the prescribed authority;
(d) who has been adjudged as an insolvent,
shall be qualified to represent any person under sub-section (1)—
(i) for all times in case of persons referred to in clauses (a), (b) and (c); and
(ii) for the period during which the insolvency continues in the case of a person
referred to in clause (d).
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(4) Any person who has been disqualified under the provisions of the State Goods
and Services Tax Act or the Union Territory Goods and Services Tax Act shall be
deemed to be disqualified under this Act.
117. Appeal to High Court.—(1) Any person aggrieved by any order passed by the
State Bench or Area Benches of the Appellate Tribunal may file an appeal to the High
Court and the High Court may admit such appeal, if it is satisfied that the case
involves a substantial question of law.
(2) An appeal under sub-section (1) shall be filed within a period of one hundred
and eighty days from the date on which the order appealed against is received by the
aggrieved person and it shall be in such form, verified in such manner as may be
prescribed:
Provided that the High Court may entertain an appeal after the expiry of the said
period if it is satisfied that there was sufficient cause for not filing it within such
period.
(3) Where the High Court is satisfied that a substantial question of law is involved
in any case, it shall formulate that question and the appeal shall be heard only on the
question so formulated, and the respondents shall, at the hearing of the appeal, be
allowed to argue that the case does not involve such question:
Provided that nothing in this sub-section shall be deemed to take away or
abridge the power of the court to hear, for reasons to be recorded, the appeal on
any other substantial question of law not formulated by it, if it is satisfied that the
case involves such question.
(4) The High Court shall decide the question of law so formulated and deliver such
judgment thereon containing the grounds on which such decision is founded and may
award such cost as it deems fit.
(5) The High Court may determine any issue which—
(a) has not been determined by the State Bench or Area Benches; or
(b) has been wrongly determined by the State Bench or Area Benches, by reason
of a decision on such question of law as herein referred to in sub-section (3).
(6) Where an appeal has been filed before the High Court, it shall be heard by a
Bench of not less than two Judges of the High Court, and shall be decided in
accordance with the opinion of such Judges or of the majority, if any, of such Judges.
(7) Where there is no such majority, the Judges shall state the point of law upon
which they differ and the case shall, then, be heard upon that point only, by one or
more of the other Judges of the High Court and such point shall be decided according
to the opinion of the majority of the Judges who have heard the case including those
who first heard it.
(8) Where the High Court delivers a judgment in an appeal filed before it under this
section, effect shall be given to such judgment by either side on the basis of a certified
copy of the judgment.
(9) Save as otherwise provided in this Act, the provisions of the Code of Civil
Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may
be, apply in the case of appeals under this section.
118. Appeal to Supreme Court.—(1) An appeal shall lie to the Supreme Court—
(a) from any order passed by the National Bench or Regional Benches of the
Appellate Tribunal; or
(b) from any judgment or order passed by the High Court in an appeal made
under Section 117 in any case which, on its own motion or on an application
made by or on behalf of the party aggrieved, immediately after passing of the
judgment or order, the High Court certifies to be a fit one for appeal to the
Supreme Court.
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(2) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to
appeals to the Supreme Court shall, so far as may be, apply in the case of appeals
under this section as they apply in the case of appeals from decrees of a High Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect
shall be given to the order of the Supreme Court in the manner provided in Section
117 in the case of a judgment of the High Court.
119. Sums due to be paid notwithstanding appeal, etc.—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 passed.
120. Appeal not to be filed in certain cases.—(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 Chapter.
(2) 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 law.
(3) 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 officer of the central tax has acquiesced in the decision on the disputed issue
by not filing an appeal or application.
(4) 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. Non-appealable decisions and orders.—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:—
(a) an order of the Commissioner or other authority empowered to direct transfer
of proceedings from one officer to another officer; or
(b) an order pertaining to the seizure or retention of books of account, register
and other documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed under Section 80.
Chapter XIX
OFFENCES AND PENALTIES
122. Penalty for certain offences.—(1) Where a taxable person who—
(i) supplies any goods or services or both without issue of any invoice or issues
an incorrect or false invoice with regard to any such supply;
(ii) issues any invoice or bill without supply of goods or services or both in
violation of the provisions of this Act or the rules made thereunder;
(iii) collects any amount as tax but fails to pay the same to the Government
beyond a period of three months from the date on which such payment
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becomes due;
(iv) collects any tax in contravention of the provisions of this Act but fails to pay
the same to the Government beyond a period of three months from the date
on which such payment becomes due;
(v) fails to deduct the tax in accordance with the provisions of sub-section (1) of
Section 51, or deducts an amount which is less than the amount required to
be deducted under the said sub-section, or where he fails to pay to the
Government under sub-section (2) thereof, the amount deducted as tax;
(vi) fails to collect tax in accordance with the provisions of sub-section (1) of
Section 52, or collects an amount which is less than the amount required to
be collected under the said sub-section or where he fails to pay to the
Government the amount collected as tax under sub-section (3) of Section 52;
(vii) takes or 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;
(viii) fraudulently obtains refund of tax under this Act;
(ix) takes or distributes input tax credit in contravention of Section 20, or the
rules made thereunder;
(x) falsifies or substitutes financial records or produces fake accounts or
documents or furnishes any false information or return with an intention to
evade payment of tax due under this Act;
(xi) is liable to be registered under this Act but fails to obtain registration;
(xii) furnishes any false information with regard to registration particulars, either
at the time of applying for registration, or subsequently;
(xiii) obstructs or prevents any officer in discharge of his duties under this Act;
(xiv) transports any taxable goods without the cover of documents as may be
specified in this behalf;
(xv) suppresses his turnover leading to evasion of tax under this Act;
(xvi) fails to keep, maintain or retain books of account and other documents in
accordance with the provisions of this Act or the rules made thereunder;
(xvii) fails to furnish information or documents called for by an officer in
accordance with the provisions of this Act or the rules made thereunder or
furnishes false information or documents during any proceedings under this
Act;
(xviii) supplies, transports or stores any goods which he has reasons to believe
are liable to confiscation under this Act;
(xix) issues any invoice or document by using the registration number of another
registered person;
(xx) tampers with, or destroys any material evidence or document;
(xxi) disposes off or tampers with any goods that have been detained, seized, or
attached under this Act,
he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to
the tax evaded or the tax not deducted under Section 51 or short deducted or
deducted but not paid to the Government or tax not collected under Section 52 or
short collected or collected but not paid to the Government or input tax credit availed
of or passed on or distributed irregularly, or the refund claimed fraudulently,
whichever is higher.
128 [(1-A) Any person who retains the benefit of a transaction covered under clauses
(i), (ii), (vii) or clause (ix) of sub-section (1) and at whose instance such transaction is
conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or
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input tax credit availed of or passed on.]
(2) Any registered person who supplies any goods or services or both on which any
tax has not been paid or short-paid or erroneously refunded, or where the input tax
credit has been wrongly availed or utilised,—
(a) for any reason, other than the reason of fraud or any wilful misstatement or
suppression of facts to evade tax, shall be liable to a penalty of ten thousand
rupees or ten per cent. of the tax due from such person, whichever is higher;
(b) for reason of fraud or any wilful misstatement or suppression of facts to
evade tax, shall be liable to a penalty equal to ten thousand rupees or the tax
due from such person, whichever is higher.
(3) Any person who—
(a) aids or abets any of the offences specified in clauses (i) to (xxi) of sub-
section (1);
(b) acquires possession of, or in any way concerns himself in transporting,
removing, depositing, keeping, concealing, supplying, or purchasing or in any
other manner deals with any goods which he knows or has reasons to believe
are liable to confiscation under this Act or the rules made thereunder;
(c) receives or is in any way concerned with the supply of, or in any other
manner deals with any supply of services which he knows or has reasons to
believe are in contravention of any provisions of this Act or the rules made
thereunder;
(d) fails to appear before the officer of central tax, when issued with a summon
for appearance to give evidence or produce a document in an inquiry;
(e) fails to issue invoice in accordance with the provisions of this Act or the rules
made thereunder or fails to account for an invoice in his books of account,
shall be liable to a penalty which may extend to twenty-five thousand rupees.
123. Penalty for failure to furnish information return.—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. Fine for failure to furnish statistics.—If any person required to furnish any
information or return under Section 151,—
(a) without reasonable cause fails to furnish such information or return as may
be required under that section, or
(b) wilfully furnishes or causes to furnish any information or return which he
knows to be false,
he shall be punishable with a fine which may extend to ten thousand rupees and in
case of a continuing offence to a further fine which may extend to one hundred rupees
for each day after the first day during which the offence continues subject to a
maximum limit of twenty-five thousand rupees.
125. General penalty.—Any person, who contravenes any of the provisions of this
Act or any rules made thereunder for which no penalty is separately provided for in
this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.
126. General disciplines related to penalty.—(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,—
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(a) a breach shall be considered a ‘minor breach’ if the amount of tax involved is
less than five thousand rupees;
(b) an omission or mistake in documentation shall be considered to be easily
rectifiable if the same is an error apparent on the face of record.
(2) The penalty imposed under this Act shall depend on the facts and
circumstances of each case and shall be commensurate with the degree and severity
of the breach.
(3) No penalty shall be imposed on any person without giving him an opportunity of
being heard.
(4) The officer under this Act shall while imposing penalty in an order for a breach
of any law, regulation or procedural requirement, specify the nature of the breach and
the applicable law, regulation or procedure under which the amount of penalty for the
breach has been specified.
(5) When a person voluntarily discloses to an officer under this Act the
circumstances of a breach of the tax law, regulation or procedural requirement prior to
the discovery of the breach by the officer under this Act, the proper officer may
consider this fact as a mitigating factor when quantifying a penalty for that person.
(6) The provisions of this section shall not apply in such cases where the penalty
specified under this Act is either a fixed sum or expressed as a fixed percentage.
127. Power to impose penalty in certain cases.—Where the proper officer is of the
view that a person is liable to a penalty and the same is not covered under any
proceedings under Section 62 or Section 63 or Section 64 or Section 73 or Section 74
or Section 129 or Section 130, he may issue an order levying such penalty after giving
a reasonable opportunity of being heard to such person.
128. Power to waive penalty or fee or both.—The Government may, by notification,
waive in part or full, any penalty referred to in Section 122 or Section 123 or Section
125 or any late fee referred to in Section 47 for such class of taxpayers and under such
mitigating circumstances as may be specified therein on the recommendations of the
Council.
129. Detention, seizure and release of goods and conveyances in transit.—(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,—
129
[(a) on payment of penalty equal to two hundred per cent. of the tax payable
on such goods and, in case of exempted goods, on payment of an amount
equal to two per cent. of the value of goods or twenty-five thousand rupees,
whichever is less, where the owner of the goods comes forward for payment of
such penalty;
(b) on payment of penalty equal to fifty per cent. of the value of the goods or
two hundred per cent. of the tax payable on such goods, whichever is higher,
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
penalty;]
(c) 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
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goods.
(2) 130 [* * *]
131 [(3) The proper officer detaining or seizing goods or conveyance shall issue a
notice within seven days of such detention or seizure, specifying the penalty payable,
and thereafter, pass an order within a period of seven days from the date of service of
such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1).]
(4) 132 [No penalty] shall be determined under sub-section (3) without giving the
person concerned an opportunity of being heard.
(5) 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 concluded.
133 [(6) Where the person transporting any goods or the owner of such goods fails to
pay the amount of penalty under sub-section (1) within fifteen days from the date of
receipt of the copy of the order passed under sub-section (3), the goods or conveyance
so detained or seized shall be liable to be sold or disposed of otherwise, in such
manner and within such time as may be prescribed, to recover the penalty payable
under sub-section (3):
Provided that the conveyance shall be released on payment by the transporter of
penalty under sub-section (3) or one lakh rupees, whichever is less:
Provided further 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 fifteen days may be reduced by the proper officer.]
130. Confiscation of goods or conveyances and levy of penalty.—(1) 134 [Where] any
person—
(i) supplies or receives any goods in contravention of any of the provisions of this
Act or the rules made thereunder with intent to evade payment of tax; or
(ii) does not account for any goods on which he is liable to pay tax under this
Act; or
(iii) supplies any goods liable to tax under this Act without having applied for
registration; or
(iv) contravenes any of the provisions of this Act or the rules made thereunder
with intent to evade payment of tax; or
(v) uses any conveyance as a means of transport for carriage of goods in
contravention of the provisions of this Act or the rules made thereunder unless
the owner of the conveyance proves that it was so used without the
knowledge or connivance of the owner himself, his agent, if any, and the
person in charge of the conveyance,
then, all such goods or conveyances shall be liable to confiscation and the person shall
be liable to penalty under Section 122.
(2) Whenever confiscation of any goods or conveyance is authorised by this Act, the
officer adjudging it shall give to the owner of the goods an option to pay in lieu of
confiscation, such fine as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods
confiscated, less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not be
less than the 135 [penalty equal to hundred per cent of the tax payable on such goods]:
Provided also that where any such conveyance is used for the carriage of the
goods or passengers for hire, the owner of the conveyance shall be given an option
to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable
on the goods being transported thereon.
(3) 136 [* * *]
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(4) No order for confiscation of goods or conveyance or for imposition of penalty
shall be issued without giving the person an opportunity of being heard.
(5) Where any goods or conveyance are confiscated under this Act, the title of such
goods or conveyance shall thereupon vest in the Government.
(6) The proper officer adjudging confiscation shall take and hold possession of the
things confiscated and every officer of Police, on the requisition of such proper officer,
shall assist him in taking and holding such possession.
(7) The proper officer may, after satisfying himself that the confiscated goods or
conveyance are not required in any other proceedings under this Act and after giving
reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose
of such goods or conveyance and deposit the sale proceeds thereof with the
Government.
131. Confiscation or penalty not to interfere with other punishments.—Without
prejudice to the provisions contained in the Code of Criminal Procedure, 1973 (2 of
1974), 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 force.
132. Punishment for certain offences.—(1) 137 [Whoever commits, or causes to
commit and retain the benefits arising out of, any of the following offences], namely:—
(a) supplies any goods or services or both without issue of any invoice, in
violation of the provisions of this Act or the rules made thereunder, with the
intention to evade tax;
(b) issues any invoice or bill without supply of goods or services or both in
violation of the provisions of this Act, or the rules made thereunder leading to
wrongful availment or utilisation of input tax credit or refund of tax;
138 [(c) avails input tax credit using the invoice or bill referred to in clause (b) or
fraudulently avails input tax credit without any invoice or bill;]

(d) collects any amount as tax but fails to pay the same to the Government
beyond a period of three months from the date on which such payment
becomes due;
(e) evades tax 139 [* * *] or fraudulently obtains refund and where such offence is
not covered under clauses (a) to (d);
(f) falsifies or substitutes financial records or produces fake accounts or
documents or furnishes any false information with an intention to evade
payment of tax due under this Act;
(g) obstructs or prevents any officer in the discharge of his duties under this Act;
(h) acquires possession of, or in any way concerns himself in transporting,
removing, depositing, keeping, concealing, supplying, 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;
(i) receives or is in any way concerned with the supply of, or in any other manner
deals with any supply of services which he knows or has reasons to believe are
in contravention of any provisions of this Act or the rules made thereunder;
(j) tampers with or destroys any material evidence or documents;
(k) fails to supply any information which he is required to supply under this Act
or the rules made thereunder or (unless with a reasonable belief, the burden
of proving which shall be upon him, that the information supplied by him is
true) supplies false information; or
(l) attempts to commit, or abets the commission of any of the offences
mentioned in clauses (a) to (k) of this section,
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shall be punishable—
(i) in cases where the amount of tax evaded or the amount of input tax credit
wrongly availed or utilised or the amount of refund wrongly taken exceeds five
hundred lakh rupees, with imprisonment for a term which may extend to five
years and with fine;
(ii) in cases where the amount of tax evaded or the amount of input tax credit
wrongly availed or utilised or the amount of refund wrongly taken exceeds two
hundred lakh rupees but does not exceed five hundred lakh rupees, with
imprisonment for a term which may extend to three years and with fine;
(iii) in the case of any other offence where the amount of tax evaded or the
amount of input tax credit wrongly availed or utilised or the amount of refund
wrongly taken exceeds one hundred lakh rupees but does not exceed two
hundred lakh rupees, with imprisonment for a term which may extend to one
year and with fine;
(iv) in cases where he commits or abets the commission of an offence specified
in clause (f) or clause (g) or clause (j), he shall be punishable with
imprisonment for a term which may extend to six months or with fine or with
both.
(2) Where any person convicted of an offence under this section is again convicted
of an offence under this section, then, he shall be punishable for the second and for
every subsequent offence with imprisonment for a term which may extend to five
years and with fine.
(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and
sub-section (2) shall, in the absence of special and adequate reasons to the contrary
to be recorded in the judgment of the Court, be for a term not less than six months.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2
of 1974), all offences under this Act, except the offences referred to in sub-section (5)
shall be non-cognizable and bailable.
(5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of
sub-section (1) and punishable under clause (i) of that sub-section shall be cognizable
and non-bailable.
(6) A person shall not be prosecuted for any offence under this section except with
the previous sanction of the Commissioner.
Explanation.—For the purposes of this section, the term “tax” shall include the
amount of tax evaded or the amount of input tax credit wrongly availed or utilised or
refund wrongly taken under the provisions of this Act, the State Goods and Services
Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act and cess levied under the Goods and Services Tax (Compensation to
States) Act.
133. Liability of officers and certain other persons.—(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 both.
(2) Any person—
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(a) who is a Government servant shall not be prosecuted for any offence under
this section except with the previous sanction of the Government;
(b) who is not a Government servant shall not be prosecuted for any offence
under this section except with the previous sanction of the Commissioner.
134.Cognizance of offences.—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 offence.
135. Presumption of culpable mental state.—In any prosecution for an offence
under this Act which requires a culpable mental state on the part of the accused, the
court shall presume the existence of such mental state but it shall be a defence for the
accused to prove the fact that he had no such mental state with respect to the act
charged as an offence in that prosecution.
(i) the expression “culpable mental state” includes intention, motive, knowledge
of a fact, and belief in, or reason to believe, a fact;
(ii) a fact is said to be proved only when the court believes it to exist beyond
reasonable doubt and not merely when its existence is established by a
preponderance of probability.
136. Relevancy of statements under certain circumstances.—A statement made and
signed by a person on appearance in response to any summons issued under Section
70 during the course of any inquiry or proceedings under this Act shall be relevant, for
the purpose of proving, in any prosecution for an offence under this Act, the truth of
the facts which it contains,—
(a) when the person who made the statement is dead or cannot be found, or is
incapable of giving evidence, or is kept out of the way by the adverse party, or
whose presence cannot be obtained without an amount of delay or expense
which, under the circumstances of the case, the court considers unreasonable;
or
(b) when the person who made the statement is examined as a witness in the
case before the court and the court is of the opinion that, having regard to the
circumstances of the case, the statement should be admitted in evidence in
the interest of justice.
137. Offences by companies.—(1) Where an offence committed by a person under
this Act is a company, every person who, at the time the offence was committed was
in charge of, and was responsible to, the company for the conduct of business of the
company, as well as the company, shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished accordingly.
(2) Notwithstanding anything contained in sub-section (1), where an offence under
this Act has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any negligence on
the part of, any director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
(3) Where an offence under this Act has been committed by a taxable person being
a partnership firm or a Limited Liability Partnership or a Hindu Undivided Family or a
trust, the partner or karta or managing trustee shall be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly and the
provisions of sub-section (2) shall, mutatis mutandis, apply to such persons.
(4) Nothing contained in this section shall render any such person liable to any
punishment provided in this Act, if he proves that the offence was committed without
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his knowledge or that he had exercised all due diligence to prevent the commission of
such offence.
(i) “company” means a body corporate and includes a firm or other association of
individuals; and
(ii) “director”, in relation to a firm, means a partner in the firm.
138. Compounding of offences.—(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) a person who has been allowed to compound once in respect of any of the
offences specified in clauses (a) to (f) of sub-section (1) of Section 132 and
the offences specified in clause (l) which are relatable to offences specified in
clauses (a) to (f) of the said sub-section;
(b) a person who has been allowed to compound once in respect of any offence,
other than those in clause (a), under this Act or under the provisions of any
State Goods and Services Tax Act or the Union Territory Goods and Services
Tax Act or the Integrated Goods and Services Tax Act in respect of supplies of
value exceeding one crore rupees;
(c) a person who has been accused of committing an offence under this Act
which is also an offence under any other law for the time being in force;
(d) a person who has been convicted for an offence under this Act by a court;
(e) a person who has been accused of committing an offence specified in clause
(g) or clause (j) or clause (k) of sub-section (1) of Section 132; and
(f) any other class of persons or offences as may be prescribed:
Provided further that any compounding allowed under the provisions of this
section shall not affect the proceedings, if any, instituted under any other law:
Provided also that compounding shall be allowed only after making payment of tax,
interest and penalty involved in such offences.
(2) The amount for compounding of offences under this section shall be such as
may be prescribed, subject to the minimum amount not being less than ten thousand
rupees or fifty per cent. of the tax involved, whichever is higher, and the maximum
amount not being less than thirty thousand rupees or one hundred and fifty per cent.
of the tax, whichever is higher.
(3) On payment of such compounding amount as may be determined by the
Commissioner, no further proceedings shall be initiated under this Act against the
accused person in respect of the same offence and any criminal proceedings, if already
initiated in respect of the said offence, shall stand abated.
Chapter XX
TRANSITIONAL PROVISIONS
139. Migration of existing taxpayers.—(1) On and from the appointed day, every
person registered under any of the existing laws and having a valid Permanent
Account Number shall be issued a certificate of registration on provisional basis,
subject to such conditions and in such form and manner as may be prescribed, which
unless replaced by a final certificate of registration under sub-section (2), shall be
liable to be cancelled if the conditions so prescribed are not complied with.
(2) The final certificate of registration shall be granted in such form and manner
and subject to such conditions as may be prescribed.
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(3) The certificate of registration issued to a person under sub-section (1) shall be
deemed to have not been issued if the said registration is cancelled in pursuance of an
application filed by such person that he was not liable to registration under Section 22
or Section 24.
140. Transitional arrangements for input tax credit.—(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 140 [of eligible duties] 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 141 [within such time and]
in such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit in the
following circumstances, namely:—
(i) where the said amount of credit is not admissible as input tax credit under
this Act; or
(ii) 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
(iii) where the said amount of credit relates to goods manufactured and cleared
under such exemption notifications as are notified by the Government.
(2) 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 142 [within such time and] 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.
Explanation.—For the purposes of this sub-section, the expression “unavailed
CENVAT credit” means the amount that remains after subtracting the amount of
CENVAT credit already availed in respect of capital goods by the taxable person under
the existing law from the aggregate amount of CENVAT credit to which the said person
was entitled in respect of the said capital goods under the existing law.
(3) A registered person, who was not liable to be registered under the existing law,
or who was engaged in the manufacture of exempted goods or provision of exempted
services, or who was providing works contract service and was availing of the benefit
of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage
dealer or a second stage dealer or a registered importer or a depot of a manufacturer,
shall be entitled to take, in his electronic credit ledger, credit of eligible duties in
respect of inputs held in stock and inputs contained in semi-finished or finished 143
[goods held in stock on the appointed day, within such time and in such manner as
may be prescribed, subject to] the following conditions, namely:—
(i) such inputs or goods are used or intended to be used for making taxable
supplies under this Act;
(ii) the said registered person is eligible for input tax credit on such inputs under
this Act;
(iii) the said registered person is in possession of invoice or other prescribed
documents evidencing payment of duty under the existing law in respect of
such inputs;
(iv) such invoices or other prescribed documents were issued not earlier than
twelve months immediately preceding the appointed day; and
(v) 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
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of services, is not in possession of an invoice or any other documents evidencing
payment of duty in respect of inputs, then, such registered person shall, subject to
such conditions, limitations and safeguards as may be prescribed, including that
the said taxable person shall pass on the benefit of such credit by way of reduced
prices to the recipient, be allowed to take credit at such rate and in such manner as
may be prescribed.
(4) A registered person, who was engaged in the manufacture of taxable as well as
exempted goods under the Central Excise Act, 1944 (1 of 1944) or provision of taxable
as well as exempted services under Chapter V of the Finance Act, 1994 (32 of 1994),
but which are liable to tax under this Act, shall be entitled to take, in his electronic
credit ledger,—
(a) 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
(b) the amount of CENVAT credit of eligible duties in respect of inputs held in
stock and inputs contained in semi-finished or finished goods held in stock on
the appointed day, relating to such exempted goods or services, in accordance
with the provisions of sub-section (3).
(5) A registered person shall be entitled to take, in his electronic credit ledger,
credit of eligible duties and taxes in respect of inputs or input services received on or
after the appointed day but the duty or tax in respect of which has been paid by the
supplier under the 144 [existing law, within such time and in such manner as may be
prescribed], subject to the condition that the invoice or any other duty or tax paying
document of the same was recorded in the books of account of such person within a
period of thirty days from the appointed day:
Provided that the period of thirty days may, on sufficient cause being shown, be
extended by the Commissioner for a further period not exceeding thirty days:
Provided further that said registered person shall furnish a statement, in such
manner as may be prescribed, in respect of credit that has been taken under this sub-
section.
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed
amount in lieu of the tax payable under the existing law shall be entitled to take, in
his electronic credit ledger, credit of eligible duties in respect of inputs held in stock
and inputs contained in semi-finished or finished 145 [goods held in stock on the
appointed day, within such time and in such manner as may be prescribed, subject to]
the following conditions, namely:—
(i) such inputs or goods are used or intended to be used for making taxable
supplies under this Act;
(ii) the said registered person is not paying tax under Section 10;
(iii) the said registered person is eligible for input tax credit on such inputs
under this Act;
(iv) the said registered person is in possession of invoice or other prescribed
documents evidencing payment of duty under the existing law in respect of
inputs; and
(v) such invoices or other prescribed documents were issued not earlier than
twelve months immediately preceding the appointed day.
(7) 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 146 [credit under this Act, within
such time and in such manner as may be prescribed, even if] the invoices relating to
such services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law
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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 147 [within such time and 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.
(9) Where any CENVAT credit availed for the input services provided under the
existing law has been reversed due to non-payment of the consideration within a
period of three months, such 148 [credit can be reclaimed within such time and in such
manner as may be prescribed, subject to] the condition that the registered person has
made the payment of the consideration for that supply of services within a period of
three months from the appointed day.
(10) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in
Explanation 1.—For the purposes of 149 [sub-sections (1), (3), (4)] and (6), the
expression “eligible duties” means—
(i) the additional duty of excise leviable under Section 3 of the Additional Duties
of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
(ii) the additional duty leviable under sub-section (1) of Section 3 of the
Customs Tariff Act, 1975 (51 of 1975);
(iii) the additional duty leviable under sub-section (5) of Section 3 of the
150 [* * *]
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986);
(vi) the duty of excise specified in the Second Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986); and
(vii) the National Calamity Contingent Duty leviable under Section 136 of the
Finance Act, 2001 (14 of 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 151 [sub-sections (1) and (5)], the expression
“eligible duties and taxes” means—
(i) the additional duty of excise leviable under Section 3 of the Additional Duties
of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
(ii) the additional duty leviable under sub-section (1) of Section 3 of the
(iii) the additional duty leviable under sub-section (5) of Section 3 of the
152
[* * *]
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff
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Act, 1985 (5 of 1986);
(vi) the duty of excise specified in the Second Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986);
(vii) the National Calamity Contingent Duty leviable under Section 136 of the
Finance Act, 2001 (14 of 2001); and
(viii) the service tax leviable under Section 66-B of the Finance Act, 1994 (32 of
1994),
in respect of inputs and input services received on or after the appointed day.
153 [Explanation 3.—For removal of doubts, it is hereby clarified that the expression
“eligible duties and taxes” excludes any cess which has not been specified in
Explanation 1 or Explanation 2 and any cess which is collected as additional duty of
customs under sub-section (1) of Section 3 of the Customs Tariff Act, 1975 (51 of
1975).]
141. Transitional provisions relating to job work.—(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:
extended by the Commissioner for a further period not exceeding two months:
Provided further that if such inputs are not returned within the period specified in
this sub-section, the input tax credit shall be liable to be recovered in accordance with
the provisions of clause (a) of sub-section (8) of Section 142.
(2) Where any semi-finished goods had been removed from the place of business to
any other premises for carrying out certain manufacturing processes in accordance
with the provisions of existing law prior to the appointed day and such goods
(hereafter in this section referred to as “the said goods”) are returned to the said place
on or after the appointed day, no tax shall be payable, if the said goods, after
undergoing manufacturing processes or otherwise, are returned to the said place
within six months from the appointed day:
Provided further that if the said goods are not returned within the period specified
in this sub-section, the input tax credit shall be liable to be recovered in accordance
with the provisions of clause (a) of sub-section (8) of Section 142:
Provided also that the manufacturer may, in accordance with the provisions of
the existing law, transfer the said goods to the premises of any registered person
for the purpose of supplying therefrom on payment of tax in India or without
payment of tax for exports within the period specified in this sub-section.
(3) Where any excisable goods manufactured at a place of business had been
removed without payment of duty for carrying out tests or any other process not
amounting to manufacture, to any other premises, whether registered or not, in
accordance with the provisions of existing law prior to the appointed day and such
goods, are returned to the said place on or after the appointed day, no tax shall be
payable if the said goods, after undergoing tests or any other process, are returned to
the said place within six months from the appointed day:
Provided further that if the said goods are not returned within the period specified
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in this sub-section, the input tax credit shall be liable to be recovered in accordance
with the provisions of clause (a) of sub-section (8) of Section 142:
Provided also that the manufacturer may, in accordance with the provisions of
the existing law, transfer the said goods from the said other premises on payment
of tax in India or without payment of tax for exports within the period specified in
this sub-section.
(4) The tax under sub-sections (1), (2) and (3) shall not be payable, only if the
manufacturer and the job worker declare the details of the inputs or goods held in
stock by the job worker on behalf of the manufacturer on the appointed day in such
form and manner and within such time as may be prescribed.
142. Miscellaneous transitional provisions.—(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.
(2) (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:
Provided that the registered person shall be allowed to reduce his tax liability on
account of issue of the credit note only if the recipient of the credit note has
reduced his input tax credit corresponding to such reduction of tax liability.
(3) Every claim for refund filed by any person before, on or after the appointed day,
for refund of any amount of CENVAT credit, duty, tax, interest or any other amount
paid under the existing law, shall be disposed of in accordance with the provisions of
existing law and any amount eventually accruing to him shall be paid in cash,
notwithstanding anything to the contrary contained under the provisions of existing
law other than the provisions of sub-section (2) of Section 11-B of the Central Excise
Act, 1944:
Provided that where any claim for refund of CENVAT credit is fully or partially
rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit
where the balance of the said amount as on the appointed day has been carried
forward under this Act.
(4) Every claim for refund filed after the appointed day for refund of any duty or tax
paid under existing law in respect of the goods or services exported before or after the
appointed day, shall be disposed of in accordance with the provisions of the existing
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law:
Provided that where any claim for refund of CENVAT credit is fully or partially
rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit
where the balance of the said amount as on the appointed day has been carried
forward under this Act.
(5) Every claim filed by a person after the appointed day for refund of tax paid
under the existing law in respect of services not provided shall be disposed of in
accordance with the provisions of existing law and any amount eventually accruing to
him shall be paid in cash, notwithstanding anything to the contrary contained under
the provisions of existing law other than the provisions of sub-section (2) of Section
11-B of the Central Excise Act, 1944.
(6) (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 11-B 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.
(7) (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 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.
(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 11-B of the Central Excise Act, 1944 (1 of 1944) and the
amount rejected, if any, shall not be admissible as input tax credit under this
Act.
(8) (a) where in pursuance of an assessment or adjudication proceedings instituted,
whether before, on or after the appointed day, under the existing law, any amount of
tax, interest, fine or penalty becomes recoverable from the person, the same shall,
unless recovered under the existing law, be recovered as an arrear of tax under this
Act and the amount so recovered shall not be admissible as input tax credit under this
Act;
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(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 11-B of the Central Excise Act,
1944 (1 of 1944) and the amount rejected, if any, shall not be admissible as
(9) (a) where any return, furnished under the existing law, is revised after the
appointed day and if, pursuant to such revision, any amount is found to be recoverable
or any amount of 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 11-B of the Central Excise Act,
1944 (1 of 1944) and the amount rejected, if any, shall not be admissible as
(10) Save as otherwise provided in this Chapter, the goods or services or both
supplied on or after the appointed day in pursuance of a contract entered into prior to
the appointed day shall be liable to tax under the provisions of this Act.
(11) (a) notwithstanding anything contained in Section 12, no tax shall be payable
on goods under this Act to the extent the tax was leviable on the said goods under the
Value Added Tax Act of the State;
(b) notwithstanding anything contained in Section 13, no tax shall be payable on
services under this Act to the extent the tax was leviable on the said services
under Chapter V of the Finance Act, 1994 (32 of 1994);
(c) where tax was paid on any supply both under the Value Added Tax Act and
under Chapter V of the Finance Act, 1994 (32 of 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
(12) Where any goods sent on approval basis, not earlier than six months before
the appointed day, are rejected or not approved by the buyer and returned to the
seller on or after the appointed day, no tax shall be payable thereon if such goods are
returned within six months from the appointed day:
Provided that the said period of six months may, on sufficient cause being
shown, be extended by the Commissioner for a further period not exceeding two
months:
Provided further that the tax shall be payable by the person returning the goods if
such goods are liable to tax under this Act, and are returned after a period specified in
this sub-section:
Provided also that tax shall be payable by the person who has sent the goods on
approval basis if such goods are liable to tax under this Act, and are not returned
within a period specified in this sub-section.
(13) Where a supplier has made any sale of goods in respect of which tax was
required to be deducted at source under any law of a State or Union territory relating
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to Value Added Tax and has also issued an invoice for the same before the appointed
day, no deduction of tax at source under Section 51 shall be made by the deductor
under the said section where payment to the said supplier is made on or after the
appointed day.
Explanation.—For the purposes of this Chapter, the expressions “capital goods”,
“Central Value Added Tax (CENVAT) credit”, “first stage dealer”, “second stage
dealer”, or “manufacture” shall have the same meaning as respectively assigned to
them in the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder.
Chapter XXI
MISCELLANEOUS
143. Job work procedure.—(1) A registered person (hereafter in this section referred
to as the “principal”) may under intimation and subject to such conditions as may be
prescribed, send any inputs or capital goods, without payment of tax, to a job worker
for job work and from there subsequently send to another job worker and likewise, and
shall,—
(a) bring back inputs, after completion of job work or otherwise, or capital goods,
other than moulds and dies, jigs and fixtures, or tools, within one year and
three years, respectively, of their being sent out, to any of his place of
business, without payment of tax;
(b) supply such inputs, after completion of job work or otherwise, or capital
goods, other than moulds and dies, jigs and fixtures, or tools, within one year
and three years, respectively, of their being sent out from the place of
business of a job worker on payment of tax within India, or with or without
payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of
business of a job worker in accordance with the provisions of this clause
unless the said principal declares the place of business of the job worker as
his additional place of business except in a case—
(i) where the job worker is registered under Section 25; or
(ii) where the principal is engaged in the supply of such goods as may be
notified by the Commissioner.
154 [Provided further that the period of one year and three years may, on
sufficient cause being shown, be extended by the Commissioner for a further

period not exceeding one year and two years respectively.]
(2) The responsibility for keeping proper accounts for the inputs or capital goods
shall lie with the principal.
(3) Where the inputs sent for job work are not received back by the principal after
completion of job work or otherwise in accordance with the provisions of clause (a) of
sub-section (1) or are not supplied from the place of business of the job worker in
accordance with the provisions of clause (b) of sub-section (1) within a period of one
year of their being sent out, it shall be deemed that such inputs had been supplied by
the principal to the job worker on the day when the said inputs were sent out.
(4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools,
sent for job work are not received back by the principal in accordance with the
provisions of clause (a) of sub-section (1) or are not supplied from the place of
business of the job worker in accordance with the provisions of clause (b) of sub-
section (1) within a period of three years of their being sent out, it shall be deemed
that such capital goods had been supplied by the principal to the job worker on the
day when the said capital goods were sent out.
(5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and
scrap generated during the job work may be supplied by the job worker directly from
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his place of business on payment of tax, if such job worker is registered, or by the
principal, if the job worker is not registered.
Explanation.—For the purposes of job work, input includes intermediate goods
arising from any treatment or process carried out on the inputs by the principal or the
job worker.
144. Presumption as to documents in certain cases.—Where any document—
(i) is produced by any person under this Act or any other law for the time being
in force; or
(ii) 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
(iii) 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—
(a) unless the contrary is proved by such person, presume—
(i) the truth of the contents of such document;
(ii) 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;
(b) admit the document in evidence notwithstanding that it is not duly stamped,
if such document is otherwise admissible in evidence.
145. Admissibility of micro films, facsimile copies of documents and computer
printouts as documents and as evidence.—(1) Notwithstanding anything contained in
any other law for the time being in force,—
(a) a micro film of a document or the reproduction of the image or images
embodied in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) 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
(d) any information stored electronically in any device or media, including any
hard copies made of such information,
shall be deemed to be a document for the purposes of this Act and the rules made
thereunder and shall be admissible in any proceedings thereunder, without further
proof or production of the original, as evidence of any contents of the original or of any
fact stated therein of which direct evidence would be admissible.
(2) In any proceedings under this Act or the rules made thereunder, where it is
desired to give a statement in evidence by virtue of this section, a certificate,—
(a) identifying the document containing the statement and describing the
manner in which it was produced;
(b) giving such particulars of any device involved in the production of that
document as may be appropriate for the purpose of showing that the
document was produced by a computer,
shall be evidence of any matter stated in the certificate and for the purposes of this
sub-section it shall be sufficient for a matter to be stated to the best of the knowledge
and belief of the person stating it.
146. Common Portal.—The Government may, on the recommendations of the
Council, notify the Common Goods and Services Tax Electronic Portal for facilitating
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registration, payment of tax, furnishing of returns, computation and settlement of
integrated tax, electronic way bill and for carrying out such other functions and for
such purposes as may be prescribed.
147. Deemed exports.—The Government may, on the recommendations of the
Council, notify certain supplies of goods as deemed exports, where goods supplied do
not leave India, and payment for such supplies is received either in Indian rupees or in
convertible foreign exchange, if such goods are manufactured in India.
148. Special procedure for certain processes.—The Government may, on the
recommendations of the Council, and subject to such conditions and safeguards as
may be prescribed, notify certain classes of registered persons, and the special
procedures to be followed by such persons including those with regard to registration,
furnishing of return, payment of tax and administration of such persons.
149. Goods and services tax compliance rating.—(1) Every registered person may
be assigned a goods and services tax compliance rating score by the Government
based on his record of compliance with the provisions of this Act.
(2) The goods and services tax compliance rating score may be determined on the
basis of such parameters as may be prescribed.
(3) The goods and services tax compliance rating score may be updated at periodic
intervals and intimated to the registered person and also placed in the public domain
in such manner as may be prescribed.
150. Obligation to furnish information return.—(1) Any person, being—
(a) a taxable person; or
(b) a local authority or other public body or association; or
(c) any authority of the State Government responsible for the collection of value
added tax or sales tax or State excise duty or an authority of the Central
Government responsible for the collection of excise duty or customs duty; or
(d) an income tax authority appointed under the provisions of the Income-tax
Act, 1961 (43 of 1961); or
(e) a banking company within the meaning of clause (a) of Section 45-A of the
Reserve Bank of India Act, 1934 (2 of 1934); or
(f) a State Electricity Board or an electricity distribution or transmission licensee
under the Electricity Act, 2003 (36 of 2003), or any other entity entrusted
with such functions by the Central Government or the State Government; or
(g) the Registrar or Sub-Registrar appointed under Section 6 of the Registration
Act, 1908 (16 of 1908); or
(h) a Registrar within the meaning of the Companies Act, 2013 (18 of 2013); or
(i) the registering authority empowered to register motor vehicles under the
Motor Vehicles Act, 1988 (59 of 1988); or
(j) the Collector referred to in clause (c) of Section 3 of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 (30 of 2013); or
(k) the recognised stock exchange referred to in clause (f) of Section 2 of the
Securities Contracts (Regulation) Act, 1956 (42 of 1956) or
(l) a depository referred to in clause (e) of sub-section (1) of Section 2 of the
Depositories Act, 1996 (22 of 1996); or
(m) an officer of the Reserve Bank of India as constituted under Section 3 of the
Reserve Bank of India Act, 1934 (2 of 1934) or
(n) the Goods and Services Tax Network, a company registered under the
Companies Act, 2013 (18 of 2013); or
(o) a person to whom a Unique Identity Number has been granted under sub-
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section (9) of Section 25; or
(p) any other person as may be specified, on the recommendations of the
Council, by the Government,
who is responsible for maintaining record of registration or statement of accounts or
any periodic return or document containing details of payment of tax and other details
of transaction of goods or services or both or transactions related to a bank account or
consumption of electricity or transaction of purchase, sale or exchange of goods or
property or right or interest in a property under any law for the time being in force,
shall furnish an information return of the same in respect of such periods, within such
time, in such form and manner and to such authority or agency as may be prescribed.
(2) Where the Commissioner, or an officer authorised by him in this behalf,
considers that the information furnished in the information return is defective, he may
intimate the defect to the person who has furnished such information return and give
him an opportunity of rectifying the defect within a period of thirty days from the date
of such intimation or within such further period which, on an application made in this
behalf, the said authority may allow and if the defect is not rectified within the said
period of thirty days or, the further period so allowed, then, notwithstanding anything
contained in any other provisions of this Act, such information return shall be treated
as not furnished and the provisions of this Act shall apply.
(3) Where a person who is required to furnish information return has not furnished
the same within the time specified in sub-section (1) or sub-section (2), the said
authority may serve upon him a notice requiring furnishing of such information return
within a period not exceeding ninety days from the date of service of the notice and
such person shall furnish the information return.
155
[151. Power to call for information.—The Commissioner or an officer authorised
by him may, by an order, direct any person to furnish information relating to any
matter dealt with in connection with this Act, within such time, in such form, and in
such manner, as may be specified therein.]
152. Bar on disclosure of information.—(1) No information 156 [* * *] with respect to
any matter given for the purposes of Section 150 or Section 151 shall, without the
previous consent in writing of the concerned person or his authorised representative,
be published in such manner so as to enable such particulars to be identified as
referring to a particular person and no such information shall be used for the purpose
of any proceedings under this Act 157 [without giving an opportunity of being heard to
the person concerned].
(2) 158 [* * *]
(3) Nothing in this section shall apply to the publication of any information relating
to a class of taxable persons or class of transactions, if in the opinion of the
Commissioner, it is desirable in the public interest to publish such information.
153. Taking assistance from an expert.—Any officer not below the rank of Assistant
Commissioner may, having regard to the nature and complexity of the case and the
interest of revenue, take assistance of any expert at any stage of scrutiny, inquiry,
investigation or any other proceedings before him.
154. Power to take samples.—The Commissioner or an officer authorised by him
may take samples of goods from the possession of any taxable person, where he
considers it necessary, and provide a receipt for any samples so taken.
155. Burden of proof.—Where any person claims that he is eligible for input tax
credit under this Act, the burden of proving such claim shall lie on such person.
156. Persons deemed to be public servants. Protection of action taken under this
Act.—All persons discharging functions under this Act shall be deemed to be public
servants within the meaning of Section 21 (45 of 1860) of the Indian Penal Code.
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157. Disclosure of information by a public servant.—(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 thereunder.
(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 disclosed.
(2) Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of
1872), no court shall, save as otherwise provided in sub-section (3), require any
officer appointed or authorised under this Act to produce before it or to give evidence
before it in respect of particulars referred to in sub-section (1).
(3) Nothing contained in this section shall apply to the disclosure of,—
(a) any particulars in respect of any statement, return, accounts, documents,
evidence, affidavit or deposition, for the purpose of any prosecution under the
Indian Penal Code (45 of 1860) or the Prevention of Corruption Act, 1988 (49
of 1988), or any other law for the time being in force; or
(b) any particulars to the Central Government or the State Government or to any
person acting in the implementation of this Act, for the purposes of carrying
out the objects of this Act; or
(c) any particulars when such disclosure is occasioned by the lawful exercise
under this Act of any process for the service of any notice or recovery of any
demand; or
(d) any particulars to a civil court in any suit or proceedings, to which the
Government or any authority under this Act is a party, which relates to any
matter arising out of any proceedings under this Act or under any other law
for the time being in force authorising any such authority to exercise any
powers thereunder; or
(e) any particulars to any officer appointed for the purpose of audit of tax
receipts or refunds of the tax imposed by this Act; or
(f) any particulars where such particulars are relevant for the purposes of any
inquiry into the conduct of any officer appointed or authorised under this Act,
to any person or persons appointed as an inquiry officer under any law for the
time being in force; or
(g) any such particulars to an officer of the Central Government or of any State
Government, as may be necessary for the purpose of enabling that
Government to levy or realise any tax or duty; or
(h) any particulars when such disclosure is occasioned by the lawful exercise by
a public servant or any other statutory authority, of his or its powers under
any law for the time being in force; or
(i) any particulars relevant to any inquiry into a charge of misconduct in
connection with any proceedings under this Act against a practising advocate,
a tax practitioner, a practising cost accountant, a practising chartered
accountant, a practising company secretary to the authority empowered to
take disciplinary action against the members practising the profession of a
legal practitioner, a cost accountant, a chartered accountant or a company
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secretary, as the case may be; or
(j) any particulars to any agency appointed for the purposes of data entry on any
automated system or for the purpose of operating, upgrading or maintaining
any automated system where such agency is contractually bound not to use or
disclose such particulars except for the aforesaid purposes; or
(k) any 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
(l) any information relating to any class of taxable persons or class of
transactions for publication, if, in the opinion of the Commissioner, it is
desirable in the public interest, to publish such information.
159. Publication of information in respect of persons in certain cases.—(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 fit.
(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. Assessment proceedings, etc., not to be invalid on certain grounds.—(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 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. Rectification of errors apparent on the face of record.—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
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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. Bar on jurisdiction of civil courts.—Save as provided in Sections 117 and 118,
no civil court shall have jurisdiction to deal with or decide any question arising from or
relating to anything done or purported to be done under this Act.
163. Levy of fee.—Wherever a copy of any order or document is to be provided to
any person on an application made by him for that purpose, there shall be paid such
fee as may be prescribed.
164. Power of Government to make rules.—(1) The Government may, on the
recommendations of the Council, by notification, make rules for carrying out the
provisions of this Act.
(2) Without prejudice to the generality of the provisions of sub-section (1), the
Government may make rules for all or any of the matters which by this Act are
required to be, or may be, prescribed or in respect of which provisions are to be or
may be made by rules.
(3) The power to make rules conferred by this section shall include the power to
give retrospective effect to the rules or any of them from a date not earlier than the
date on which the provisions of this Act come into force.
(4) Any rules made under sub-section (1) or sub-section (2) may provide that a
contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.
165. Power to make regulations.—The Board may, by notification, make regulations
consistent with this Act and the rules made thereunder to carry out the provisions of
this Act.
166. Laying of rules, regulations and notifications.—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. Delegation of powers.—The Commissioner may, by notification, direct that
subject to such conditions, if any, as may be specified in the notification, any power
exercisable by any authority or officer under this Act may be exercisable also by
another authority or officer as may be specified in such notification.
168. Power to issue instructions or directions.—(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
directions.
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(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, 159 [160 [Section 44], sub-sections (4) and (5) of Section 52,] 161 [sub-
section (1) of Section 143, except the second proviso thereof], 162 [* * *], 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.
163 [168-A. Power of Government to extend time limit in special circumstances.—(1)
Notwithstanding anything contained in this Act, the Government may, on the

recommendations of the Council, by notification, extend the time limit specified in, or
prescribed or notified under, this Act in respect of actions which cannot be completed
of complied with due to force majeure.
(2) The power to issue notification under sub-section (1) shall include the power to
give retrospective effect to such notification from a date not earlier than the date of
commencement of this Act.
Explanation.—For the purposes of this section, the expression “force majeure”
means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other
calamity caused by nature or otherwise affecting the implementation of any of the
provisions of this Act.]
169. Service of notice in certain circumstances.—(1) Any decision, order, summons,
notice or other communication under this Act or the rules made thereunder shall be
served by any one of the following methods, namely:—
(a) by giving or tendering it directly or by a messenger including a courier to the
addressee or the taxable person or to his manager or authorised
representative or an advocate or a tax practitioner holding authority to appear
in the proceedings on behalf of the taxable person or to a person regularly
employed by him in connection with the business, or to any adult member of
family residing with the taxable person; or
(b) by registered post or speed post or courier with acknowledgement due, to the
person for whom it is intended or his authorised representative, if any, at his
last known place of business or residence; or
(c) by sending a communication to his e-mail address provided at the time of
registration or as amended from time to time; or
(d) by making it available on the common portal; or
(e) by publication in a newspaper circulating in the locality in which the taxable
person or the person to whom it is issued is last known to have resided,
carried on business or personally worked for gain; or
(f) 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 notice.
(2) 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).
(3) 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 proved.
170. Rounding off of tax, etc.—The amount of tax, interest, penalty, fine or any
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other sum payable, and the amount of refund or any other sum due, under the
provisions of this Act shall be rounded off to the nearest rupee and, for this purpose,
where such amount contains a part of a rupee consisting of paise, then, if such part is
fifty paise or more, it shall be increased to one rupee and if such part is less than fifty
paise it shall be ignored.
171. Anti-profiteering measure.—(1) Any reduction in rate of tax on any supply of
goods or services or the benefit of input tax credit shall be passed on to the recipient
by way of commensurate reduction in prices.
(2) The Central Government may, on recommendations of the Council, by
notification, constitute an Authority, or empower an existing Authority constituted
under any law for the time being in force, to examine whether input tax credits availed
by any registered person or the reduction in the tax rate have actually resulted in a
commensurate reduction in the price of the goods or services or both supplied by him.
(3) The Authority referred to in sub-section (2) shall exercise such powers and
discharge such functions as may be prescribed.
164 [(3-A)
Where the Authority referred to in sub-section (2), after holding
examination as required under the said sub-section comes to the conclusion that any
registered person has profiteered under sub-section (1), such person shall be liable to
pay penalty equivalent to ten per cent. of the amount so profiteered:
Provided that no penalty shall be leviable if the profiteered amount is deposited
within thirty days of the date of passing of the order by the Authority.
Explanation.—For the purposes of this section, the expression “profiteered” shall
mean the amount determined on account of not passing the benefit of reduction in
rate of tax on supply of goods or services or both or the benefit of input tax credit to
the recipient by way of commensurate reduction in the price of the goods or services
or both.]
172. Removal of difficulties.—(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 165 [five
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. Amendment of Act 32 of 1994.—Save as otherwise provided in this Act,
Chapter V of the Finance Act, 1994 shall be omitted.
174. Repeal and saving.—(1) Save as otherwise provided in this Act, on and from
the date of commencement of this Act, the Central Excise Act, 1944 (1 of 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 (16 of 1955), the Additional Duties of Excise (Goods of Special Importance)
Act, 1957 (58 of 1957), the Additional Duties of Excise (Textiles and Textile Articles)
Act, 1978 (40 of 1978), and the Central Excise Tariff Act, 1985 (5 of 1986) (hereafter
referred to as the repealed Acts) are hereby repealed.
(2) The repeal of the said Acts and the amendment of the Finance Act, 1994 (32 of
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—
(a) revive anything not in force or existing at the time of such amendment or
repeal; or
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(b) affect the previous operation of the amended Act or repealed Acts and orders
or anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation, or liability acquired, accrued or incurred
under the amended Act or repealed Acts or orders under such repealed or
amended Acts:
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
(d) 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
(e) 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;
(f) 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.
(3) 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 (10 of 1897) with regard to the effect of repeal.
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 assets.
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—
(a) by a principal to his agent where the agent undertakes to supply such goods
on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such
goods on behalf of the principal.
4. Import of services by a 166 [person] from a related person or from any of his other
establishments outside India, in the course or furtherance of business.
SCHEDULE II
[See Section 7]
Activities 167 [or Transactions] to be treated as supply of goods or supply of services
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1. Transfer
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the
transfer of title thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates that
property in goods shall pass at a future date upon payment of full
consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of services;
(b) 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
(a) 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, 168 [* * *] such transfer or
disposal is a supply of goods by the person;
(b) 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, 169 [* * *] the usage or making available of such
goods is a supply of services;
(c) 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—
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed to be a
taxable person.
5. Supply of services
The following shall be treated as supply of services, namely:—
(a) renting of immovable property;
(b) 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 earlier.
Explanation.—For the purposes of this clause—
(1) the expression “competent authority” means the Government or any authority
authorised to issue completion certificate under any law for the time being in force and
in case of non-requirement of such certificate from such authority, from any of the
following, namely:—
(i) an architect registered with the Council of Architecture constituted under the
Architects Act, 1972 (20 of 1972); or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village
or development or planning authority;
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(2) the expression “construction” includes additions, alterations, replacements or

remodelling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual
property right;
(d) development, design, programming, customisation, adaptation, upgradation,
enhancement, implementation of information technology software;
(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a
situation, or to do an act; and
(f) transfer of the right to use any goods for any purpose (whether or not for a
specified period) for cash, deferred payment or other valuable consideration.
6. Composite supply
The following composite supplies shall be treated as a supply of services, namely:—
(a) works contract as defined in clause (119) of Section 2; and
(b) supply, by way of or as part of any service or in any other manner
whatsoever, of goods, being food or any other article for human consumption
or any drink (other than alcoholic liquor for human consumption), where such
supply or service is for cash, deferred payment or other valuable
consideration.
7. 170 [* * *]
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
employment.
2. Services by any court or Tribunal established under any law for the time being in
force.
3. (a) the functions performed by the Members of Parliament, Members of State
Legislature, Members of Panchayats, Members of Municipalities and Members of other
local authorities;
(b) the duties performed by any person who holds any post in pursuance of the
provisions of the Constitution in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a
Director in a body established by the Central Government or a State
Government or local authority and who is not deemed as an employee before
the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including transportation of
the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of
building.
6. Actionable claims, other than lottery, betting and gambling.
171
[7. Supply of goods from a place in the non-taxable territory to another place in
the non-taxable territory without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home
consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of
documents of title to the goods, after the goods have been dispatched from
the port of origin located outside India but before clearance for home
consumption.]
Explanation 172[1].—For the purposes of paragraph 2, the term “court” includes
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District Court, High Court and Supreme Court.
173 [Explanation 2.—For the purposes of paragraph 8, the expression “warehoused
goods” shall have the same meaning as assigned to it in the Customs Act, 1962.]
————
1. Received the assent of the President on the 12th April, 2017
2. The words “except the State of Jammu and Kashmir” omitted by Act 26 of 2017, S. 2(a) (w.r.e.f. 8-7-2017).
3.
Subs. for “Central Board of Excise and Customs” by Act 31 of 2018, S. 2(a)(i) (w.e.f. 1-2-2019).
4. Ins. by Act 23 of 2019, S. 92 (w.e.f. the date to be notified).
5. Subs. for “the Appellate Authority and the Appellate Tribunal” by Act 31 of 2018, S. 2(a)(ii) (w.e.f. 1-2-2019).
6.
Subs. for “Central Board of Excise and Customs” by Act 13 of 2018, S. 221 (w.e.f. the date to be notified).
7. Subs. by Act 31 of 2018, S. 2(b) (w.e.f. 1-2-2019).
8. Omitted by Act 31 of 2018, S. 2(c ) (w.e.f. 1-2-2019).
9.
Subs. for “clause (c )” by Act 31 of 2018, S. 2(d) (w.e.f. 1-2-2019).
10. Ins. by Act 31 of 2018, S. 2(e) (w.e.f. 1-2-2019).
11. Ins. by Act 31 of 2018, S. 2(f) (w.e.f. 1-2-2019).
12.
Subs. by Act 12 of 2020, S. 118 (w.e.f. the date to be notified). Prior to substitution it read as:
“(c ) Dadra and Nagar Haveli and Daman and Diu;
(d) [* * *]”
13.
Ins. by Act 13 of 2021, S. 108 (w.r.e.f. 1-7-2017).
14. Ins. by Act 31 of 2018, S. 3(a)(i) (w.r.e.f. 1-7-2017).
15. The word “and” omitted by Act 31 of 2018, S. 3(a)(ii) (w.r.e.f. 1-7-2017).
16.
Omitted by Act 31 of 2018, S. 3(a)(iii) (w.r.e.f. 1-7-2017).
17. Ins. by Act 31 of 2018, S. 3(b) (w.r.e.f. 1-7-2017).
18.
Subs. for “sub-sections (1) and (2)” by Act 31 of 2018, S. 3(c ) (w.r.e.f. 1-7-2017).
19.
Subs. by Act 31 of 2018, S. 4 (w.e.f. 1-2-2019).
Subs. for “in lieu of the tax payable by him, an amount calculated at such rate” by Act 31 of 2018, S. 5(a)(i)
20.
(w.e.f. 1-2-2019).
21.
Subs. for “one crore rupees” by Act 31 of 2018, S. 5(a)(ii) (w.e.f. 1-2-2019).
22.
Ins. by Act 31 of 2018, S. 5(a)(iii) (w.e.f. 1-2-2019).
23. Ins. by Act 23 of 2019, S. 93(a) (w.e.f. 1-1-2020).
25.
Ins. by Act 12 of 2020, S. 119 (w.e.f. the date to be notified).
26.
28. The word “and” omitted by Act 23 of 2019, S. 93(b)(i) (w.e.f. 1-1-2020).
29. Subs. for “Council:” by Act 23 of 2019, S. 93(b)(ii) (w.e.f. 1-1-2020).
30. Ins. by Act 23 of 2019, S. 93(b)(iii) (w.e.f. 1-1-2020).
31. Ins. by Act 23 of 2019, S. 93(c ) (w.e.f. 1-1-2020).
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32. Ins. by Act 23 of 2019, S. 93(d) (w.e.f. 1-1-2020).

33. Ins. by Act 23 of 2019, S. 93(d) (w.e.f. 1-1-2020).
34. Ins. by Act 23 of 2019, S. 93(e) (w.e.f. 1-1-2020).
35. Ins. by Act 23 of 2019, S. 93(f) (w.e.f. 1-1-2020).
36. Ins. by Act 23 of 2019, S. 93(g) (w.e.f. 1-1-2020).
37. The words “sub-section (1) of” omitted by Act 31 of 2018, S. 6 (w.e.f. 1-2-2019).
38.
The words “sub-section (2) of” omitted by Act 31 of 2018, S. 7 (w.e.f. 1-2-2019).
39. The words “sub-section (2) of” omitted by Act 31 of 2018, S. 7 (w.e.f. 1-2-2019).
41.
Subs. by Act 31 of 2018, S. 8(a) (w.e.f. 1-2-2019).
42. Subs. for “Section 41” by Act 31 of 2018, S. 8(b) (w.e.f. the date to be notified).
43. The words “invoice relating to such” omitted by Act 12 of 2020, S. 120 (w.e.f. the date to be notified).
44.
Ins. by S.O. 6428(E), dated 31-12-2018.
45. The words “invoice relating to such” omitted by Act 12 of 2020, S. 120 (w.e.f. the date to be notified).
47.
Subs. by Act 31 of 2018, S. 9(b) (w.e.f. 1-2-2019).
48.
Subs. for “under entry 84” by Act 31 of 2018, S. 10 (w.e.f. 1-2-2019).
50.
Ins. by Act 23 of 2019, S. 94 (w.e.f. 1-1-2020).
51.
Ins. by Act 26 of 2017, S. 2(b) (w.r.e.f. 8-7-2017).
52. Ins. by Act 31 of 2018, S. 11(b) (w.e.f. 1-2-2019).
53. Ins. by Act 31 of 2018, S. 12 (w.e.f. 1-2-2019).

56. Ins. by Act 23 of 2019, S. 95 (w.e.f. 1-1-2020).

58. Subs. by Act 12 of 2020, S. 121 (w.e.f. the date to be notified). Prior to substitution it read as:
“(c ) the taxable person, other than the person registered under sub-section (3) of Section 25, is no
longer liable to be registered under Section 22 or Section 24:”
59. Ins. by Act 31 of 2018, S. 14(b) (w.e.f. 1-2-2019).
60. Ins. by Act 31 of 2018, S. 14(c ) (w.e.f. 1-2-2019).
“Provided that the registered person who was served notice under sub-section (2) of Section 29 in the
manner as provided in clause (c) or clause (d) of sub-section (1) of Section 169 and who could not reply to
the said notice, thereby resulting in cancellation of his registration certificate and is hence unable to file
application for revocation of cancellation of registration under sub-section (1) of Section 30 of the Act,
against such order passed up to 31.03.2019, shall be allowed to file application for revocation of cancellation
of the registration not later than 22.07.2019.”
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“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—
(a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or
(b) tax invoice may not be issued.”

63. Ins. by Act 23 of 2019, S. 96 (w.e.f. 1-1-2020).
64. Subs. for “Where a tax invoice has” by Act 31 of 2018, S. 15(a)(i) (w.e.f. 1-2-2019).
65. Subs. for “a credit note” by Act 31 of 2018, S. 15(a)(ii) (w.e.f. 1-2-2019).
66. Subs. for “Where a tax invoice has” by Act 31 of 2018, S. 15(b)(i) (w.e.f. 1-2-2019).
67. Subs. for “a debit note” by Act 31 of 2018, S. 15(b)(ii) (w.e.f. 1-2-2019).
68. Omitted by Act 13 of 2021, S. 110 (w.e.f. 1-8-2021). Prior to omission it read as:
“(5) 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 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.
Provided that nothing contained in this sub-section shall apply to any department of the Central
Government or a State Government or a local authority, whose books of account are subject to audit by the
Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities
under any law for the time being in force.”
69.
Ins. by S.O. 6428(E), dated 31-12-2018.
70. Subs. by Act 23 of 2019, S. 97(a) (w.e.f. the date to be notified).
71. Subs. by Act 23 of 2019, S. 97(b) (w.e.f. the date to be notified).
72.
Subs. for “in the return to be furnished for the month or quarter during which such omission or incorrect
particulars are noticed” by Act 31 of 2018, S. 17(c )(i) (w.e.f. the date to be notified).
73.
Subs. for “the end of the financial year” by Act 31 of 2018, S. 17(c )(ii) (w.e.f. the date to be notified).
75. Subs. by Act 13 of 2021, S. 111 (w.e.f. 1-8-2021). Prior to substitution it read as:
“44. Annual return.—(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 year:
Provided that the Commissioner may, on the recommendations of the Council and for reasons to be
recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of
Provided further that any extension of time limit notified by the Commissioner of State tax or the
Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.
(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.
Explanation.—For the purposes of this section, it is hereby declared that the annual return for the period
from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the 31st December, 2019 and
the annual return for the period from the 1st April, 2018 to the 31st March, 2019 shall be furnished on or
before the 31st March, 2020.”
76. Ins. by Act 31 of 2018, S. 19 (w.e.f. 1-2-2019).
77.
Subs. for “Section 41” by Act 31 of 2018, S. 20(a) (w.e.f. the date to be notified).
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78. Ins. by Act 31 of 2018, S. 20(b)(i) (w.e.f. 1-2-2019).

79. Ins. by Act 31 of 2018, S. 20(b)(ii) (w.e.f. 1-2-2019).
80.
Ins. by Act 23 of 2019, S. 99 (w.e.f. 1-1-2020).
81. Ins. by Act 31 of 2018, S. 21 (w.e.f. 1-2-2019).
82. Ins. by Act 31 of 2018, S. 21 (w.e.f. 1-2-2019).
83.
Subs. by Act 13 of 2021, S. 112 (w.r.e.f. 1-7-2017). Prior to substitution it read as:
“Provided that the interest on tax payable in respect of supplies made during a tax period and declared in
the return for the said period furnished after the due date in accordance with the provisions of Section 39,
except where such return is furnished after commencement of any proceedings under Section 73 or Section
74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the
electronic cash ledger.”
84. Subs. by Act 12 of 2020, S. 124(a) (w.e.f. the date to be notified). Prior to substitution it read as:
“(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate
of deduction, amount deducted, amount paid to the Government and such other particulars in such manner
as may be prescribed.”
85. Omitted by Act 12 of 2020, S. 124(b) (w.e.f. the date to be notified). Prior to omission it read as:
“(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source,
within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a
late fee, a sum of one hundred rupees per day from the day after the expiry of such five days period until the
failure is rectified, subject to a maximum amount of five thousand rupees.”
86.
Ins. by S.O. 6430(E), dated 31-12-2018.
87. Subs. for “31st January, 2019” by S.O. 634(E), dated 1-2-2019.
89.
Ins. by Act 23 of 2019, S. 101(b) (w.e.f. 1-1-2020).
90.
Subs. for “Section 37” by Act 31 of 2018, S. 22 (w.e.f. 1-2-2019).
91. Ins. by Act 23 of 2019, S. 102 (w.e.f. 1-1-2020).
92.
Subs. for “zero-rated supplies” by Act 31 of 2018, S. 23(a) (w.e.f. 1-2-2019).
93. Ins. by Act 23 of 2019, S. 103 (w.e.f. 1-9-2019).
94.
Ins. by Act 31 of 2018, S. 23(b)(i) (w.e.f. 1-2-2019).
95.
Subs. by Act 31 of 2018, S. 23(b)(ii) (w.e.f. 1-2-2019).
96. Subs. for “Sections 122, 125, 129 and 130” by Act 13 of 2021, S. 113 (w.e.f. the date to be notified).
98.
Ins. by Act 31 of 2018, S. 24 (w.e.f. 1-2-2019).
“(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
prescribed.”
100.
Ins. by Act 23 of 2019, S. 104(i)(a) (w.e.f. the date to be notified).
101. Ins. by Act 23 of 2019, S. 104(i)(b) (w.e.f. the date to be notified).
102. Ins. by Act 23 of 2019, S. 104(ii) (w.e.f. the date to be notified).
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103.
106.
Ins. by Act 23 of 2019, S. 106(a) (w.e.f. the date to be notified).
107. Ins. by Act 23 of 2019, S. 106(b) (w.e.f. the date to be notified).
108. Ins. by Act 23 of 2019, S. 106(a) (w.e.f. the date to be notified).
109.
Subs. for “or the appellant” by Act 23 of 2019, S. 106(c ) (w.e.f. the date to be notified).
110. Ins. by Act 23 of 2019, S. 107(i) (w.e.f. the date to be notified).
111. Ins. by Act 23 of 2019, S. 107(ii) (w.e.f. the date to be notified).
112. Ins. by Act 23 of 2019, S. 108(a) (w.e.f. the date to be notified).

114.Subs. for “Powers of Authority and Appellate Authority” by Act 23 of 2019, S. 109(a) (w.e.f. the date to be
notified).
116.
Ins. by Act 23 of 2019, S. 109(c ) (w.e.f. the date to be notified).
Subs. for “Procedure of Authority and Appellate Authority” by Act 23 of 2019, S. 110(a) (w.e.f. the date to
117.
be notified).
119.
Ins. by Act 31 of 2018, S. 26 (w.e.f. 1-2-2019).
120.
121. Declared unconstitutional in Revenue Bar Association v. Union of India.
The words “except for the State of Jammu and Kashmir” omitted by Act 12 of 2020, S. 125(a) (w.e.f. the
122.
date to be notified).
“Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services Tax
Appellate Tribunal constituted under this Act shall be the State Appellate Tribunal constituted under the
Jammu and Kashmir Goods and Services Tax Act, 2017:”
124. Subs. by Act 26 of 2017, S. 2(c )(iii) (w.r.e.f. 8-7-2017).

127. Ins. by Act 31 of 2018, S. 26 (w.e.f. 1-2-2019).
128.
129. Subs. by Act 13 of 2021, S. 117(i) (w.e.f. the date to be notified). Prior to substitution it read as:
“(a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on
such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of
goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for
payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods
reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to
five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of
the goods does not come forward for payment of such tax and penalty;”
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-
130. Omitted by Act 13 of 2021, S. 117(ii) (w.e.f. the date to be notified). Prior to omission it read as:
“(2) The provisions of sub-section (6) of Section 67 shall, mutatis mutandis, apply for detention and
seizure of goods and conveyances.”
131. Subs. by Act 13 of 2021, S. 117(iii) (w.e.f. the date to be notified). Prior to substitution it read as:
“(3) 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 ).”
132. Subs. for “No tax, interest or penalty” by Act 13 of 2021, S. 117(iv) (w.e.f. the date to be notified).
133. Subs. by Act 13 of 2021, S. 117(v) (w.e.f. the date to be notified). Prior to substitution it read as:
“(6) 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 fourteen 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.”
134.
Subs. for “Notwithstanding anything contained in this Act, if” by Act 13 of 2021, S. 118(a) (w.e.f. the date
to be notified).
Subs. for “amount of penalty leviable under sub-section (1) of Section 129” by Act 13 of 2021, S. 118(b)
135.
(w.e.f. the date to be notified).

136. Omitted by Act 13 of 2021, S. 118(c ) (w.e.f. the date to be notified). Prior to omission it read as:
“(3) Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the
owner of such goods or conveyance or the person referred to in sub-section (1), shall, in addition, be liable
to any tax, penalty and charges payable in respect of such goods or conveyance.”
Subs. for “Whoever commits any of the following offences” by Act 12 of 2020, S. 127(i) (w.e.f. the date to
137.
be notified)
138. Subs. by Act 12 of 2020, S. 127(ii) (w.e.f. the date to be notified). Prior to substitution it read as:
“(c ) avails input tax credit using such invoice or bill referred to in clause (b);”
The words “, fraudulently avails input tax credit” omitted by Act 12 of 2020, S. 127(iii) (w.e.f. the date to be
139.
notified).
140.
Ins. by Act 31 of 2018, S. 28(a) (w.r.e.f. 1-7-2017).
141.
Ins. and shall be deemed to have been inserted by Act 12 of 2020, S. 128(a) (w.r.e.f. 1-7-2017).
142. Ins. and shall be deemed to have been inserted by Act 12 of 2020, S. 128(b) (w.r.e.f. 1-7-2017).
143.Subs. and shall be deemed to have been substituted for “goods held in stock on the appointed day subject
to” by Act 12 of 2020, S. 128(c ) (w.r.e.f. 1-7-2017)
Subs. and shall be deemed to have been substituted for “existing law” by Act 12 of 2020, S. 128(d) (w.r.e.f.
144.
1-7-2017)
145.Subs. and shall be deemed to have been substituted for “goods held in stock on the appointed day subject
to” by Act 12 of 2020, S. 128(e) (w.r.e.f. 1-7-2017)
Subs. and shall be deemed to have been substituted for “credit under this Act even if” by Act 12 of 2020, S.
146.
128(f) (w.r.e.f. 1-7-2017)

147.Subs. and shall be deemed to have been substituted for “in such manner” by Act 12 of 2020, S. 128(g)
(w.r.e.f. 1-7-2017)
Subs. and shall be deemed to have been substituted for “credit can be reclaimed subject to” by Act 12 of
148.
2020, S. 128(h) (w.r.e.f. 1-7-2017)

149. Subs. for “sub-sections (3), (4)” by Act 31 of 2018, S. 28(b)(i) (w.r.e.f. 1-7-2017).
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150. Omitted by Act 31 of 2018, S. 28(b)(ii) (w.r.e.f. 1-7-2017).
151. Subs. for “sub-section (5)” by Act 31 of 2018, S. 28(c )(i) (w.r.e.f. 1-7-2017).
152. Omitted by Act 31 of 2018, S. 28(c )(ii) (w.r.e.f. 1-7-2017).
153. Ins. by Act 31 of 2018, S. 28(d) (w.r.e.f. 1-7-2017).
154. Ins. by Act 31 of 2018, S. 29 (w.e.f. 1-2-2019).
155.
Subs. by Act 13 of 2021, S. 119 (w.e.f. the date to be notified). Prior to substitution it read as:
“151. Power to collect statistics.—(1) The Commissioner may, if he considers that it is necessary so to
do, by notification, direct that statistics may be collected relating to any matter dealt with by or in
connection with this Act.
(2) Upon such notification being issued, the Commissioner, or any person authorised by him in this behalf,
may call upon the concerned persons to furnish such information or returns, in such form and manner as may
be prescribed, relating to any matter in respect of which statistics is to be collected.”
156.
The words “of any individual return or part thereof” omitted by Act 13 of 2021, S. 120(a)(i) (w.e.f. the date
to be notified).
157. Ins. by Act 13 of 2021, S. 120(a)(ii) (w.e.f. the date to be notified).
“(2) Except for the purposes of prosecution under this Act or any other Act for the time being in force,
no person who is not engaged in the collection of statistics under this Act or compilation or computerisation
thereof for the purposes of this Act, shall be permitted to see or have access to any information or any
individual return referred to in Section 151.”
159.
Ins. by Act 23 of 2019, S. 111 (w.e.f. 1-1-2020).
160. Subs. for “sub-section (1) of Section 44” by Act 13 of 2021, S. 121(i) (w.e.f. the date to be notified).
Subs. for “sub-section (5) of Section 66, sub-section (1) of Section 143” by Act 12 of 2020, S. 129 (w.e.f.
161.
the date to be notified)

162.The words “sub-section (1) of Section 151” omitted by Act 13 of 2021, S. 121(ii) (w.e.f. the date to be
notified).
163. Ins. by Act 38 of 2020, S. 7 (w.r.e.f. 31-3-2020).
164.
Ins. by Act 23 of 2019, S. 112 (w.e.f. 1-1-2020).
165.
Subs. for “three years” by Act 12 of 2020, S. 130, dated 27-3-2020.
166. Subs. for “taxable person” by Act 31 of 2018, S. 30 (w.e.f. 1-2-2019).
167.
Ins. by Act 31 of 2018, S. 31 (w.r.e.f. 1-7-2017).
The words “whether or not for a consideration,” omitted and shall be deemed to have been omitted by Act
168.
12 of 2020, S. 131 (w.r.e.f. 1-7-2017).
The words “whether or not for a consideration,” omitted and shall be deemed to have been omitted by Act
169.
12 of 2020, S. 131 (w.r.e.f. 1-7-2017).

170.
Omitted by Act 13 of 2021, S. 122 (w.e.f. 1-7-2017).
171.
Ins. by Act 31 of 2018, S. 32(i) (w.e.f. 1-2-2019).
172. Renumbered by Act 31 of 2018, S. 32(ii) (w.e.f. 1-2-2019).
173.
Ins. by Act 31 of 2018, S. 32(ii) (w.e.f. 1-2-2019).
Disclaimer: While every effort is made to avoid any mistake or omission, this casenote/ headnote/ judgment/ act/ rule/ regulation/ circular/
notification is being circulated on the condition and understanding that the publisher would not be liable in any manner by reason of any mistake
or omission or for any action taken or omitted to be taken or advice rendered or accepted on the basis of this casenote/ headnote/ judgment/ act/
rule/ regulation/ circular/ notification. All disputes will be subject exclusively to jurisdiction of courts, tribunals and forums at Lucknow only. The
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SCC Online Web Edition, Copyright © 2021

Page 1 Tuesday, September 28, 2021

1. Short title, extent and commencement

3. Officers under this Act

LEVY AND COLLECTION OF TAX

8. Tax liability on composite and mixed supplies

9. Levy and collection

10. Composition levy

11. Power to grant exemption from tax

TIME AND VALUE OF SUPPLY

12. Time of supply of goods

13. Time of supply of services

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

15. Value of taxable supply

INPUT TAX CREDIT

16. Eligibility and conditions for taking input tax credit

17. Apportionment of credit and blocked credits

18. Availability of credit in special circumstances

20. Manner of distribution of credit by Input Service Distributor

21. Manner of recovery of credit distributed in excess

22. Persons liable for registration

23. Persons not liable for registration

24. Compulsory registration in certain cases

25. Procedure for registration

26. Deemed registration

28. Amendment of registration

29. Cancellation [or suspension] of registration

30. Revocation of cancellation of registration

TAX INVOICE, CREDIT AND DEBIT NOTES

31. Tax invoice

31-A. Facility of digital payment to recipient

32. Prohibition of unauthorised collection of tax

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

34. Credit and debit notes

35. Accounts and other records

36. Period of retention of accounts

37. Furnishing details of outward supplies

38. Furnishing details of inward supplies—

39. Furnishing of returns

40. First return

41. Claim of input tax credit and provisional acceptance thereof

42. Matching, reversal and reclaim of input tax credit

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

44. Annual return

45. Final return

46. Notice to return defaulters

47. Levy of late fee

48. Goods and services tax practitioners

49. Payment of tax, interest, penalty and other amounts

49-A. Utilisation of input tax credit subject to certain conditions

49-B. Order of utilisation of input tax credit

50. Interest on delayed payment of tax

51. Tax deduction at source

52. Collection of tax at source

53. Transfer of input tax credit

53-A. Transfer of certain amounts

54. Refund of tax

55. Refund in certain cases

56. Interest on delayed refunds