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2017 } | 5 {No. 31 Poudouchéry Lundi 5 Juin 2017No. Puducherry Monday 5th June 2017

( 15 Jyaistha 1939 )

GOVERNMENT OF PUDUCHERRY

LAW DEPARTMENT

No. 138/Leg./2017-LD.Puducherry, the 5th June 2017.

The following Act of the Legislative Assembly, Puducherry receivedthe assent of the Lieutenant-Governor, Puducherry, on the 1st day ofJune, 2017 and is hereby published for general information :—

N. MURUGAVEL,Under Secretary to Government (Law).

530 LA GAZETTE DE L'ETAT [PART–II

THE PUDUCHERRY GOODS AND SERVICES TAX

ACT, 2017

(Act No. 6 of 2017)(1-6-2017)

AN

ACT

to make a provision for levy and collection of tax onIntra-State supply of goods or services or both bythe Union territory of Puducherry and the mattersconnected therewith or incidental thereto.

BE it enacted by the Legislative Assembly ofPuducherry in the Sixty-eighth year of the Republic of Indiaas follows:-

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Puducherry Goodsand Services Tax Act, 2017.

(2) It extends to the whole of the Union territoryof Puducherry.

(3) It shall come into force on such date as theState Government may, by notification in the OfficialGazette, appoint:

Provided that different dates may be appointed fordifferent provisions of this Act and any reference in anysuch provision to the commencement of this Act shall beconstrued as a reference to the coming into force of thatprovision.

2. In this Act, unless the context otherwise requires,-

(1) "actionable claim" shall have the same meaningas assigned to it in section 3 of the Transfer ofProperty Act, 1882;

Short title,extent andcommencement.

Definitions.

CentralAct 4of 1882.

531PART–II] LA GAZETTE DE L'ETAT

(2) "address of delivery" means the address ofthe recipient of goods or services or both indicatedon the tax invoice issued by a registered personfor delivery of such goods or services or both;

(3) "address on record" means the address ofthe recipient as available in the records of thesupplier;

(4) "adjudicating authority" means anyauthority, appointed or authorised to pass anyorder or decision under this Act, but does notinclude the Commissioner, Revisional Authority,the Authority for Advance Ruling, the AppellateAuthority for Advance Ruling, the AppellateAuthority and the Appellate Tribunal;

(5) "agent" means a person, including a factor,broker, commission agent, arhatia, del credereagent, an auctioneer or any other mercantileagent, by whatever name called, who carries onthe business of supply or receipt of goods orservices or both on behalf of another;

(6) "aggregate turnover" means the aggregatevalue of all taxable supplies (excluding the valueof inward supplies on which tax is payable by aperson on reverse charge basis), exemptsupplies, exports of goods or services or bothand inter-State supplies of persons having thesame Permanent Account Number, to becomputed on all India basis but excludes centraltax, State tax, Union territory tax, integrated taxand cess;

(7) "agriculturist" means an individual or aHindu Undivided Family who undertakescultivation of land-

(a) by own labour, or

(b) by the labour of family, or


(c) by servants on wages payable in cashor kind or by hired labour under personalsupervision or the personal supervision of anymember of the family;

(8) "Appellate Authority" means an authorityappointed or authorised to hear appeals asreferred to in section 107;

(9) "Appellate Tribunal" means the Goods andServices Tax Appellate Tribunal referred to insection 109;

(10) "appointed day" means the date on whichthe provisions of this Act shall come into force;

(11) "assessment" means determination of taxliability under this Act and includes self-assessment, re-assessment, provisional assessment,summary assessment and best judgement assessment;

(12) "associated enterprises" shall have thesame meaning as assigned to it in section 92A ofthe Income-tax Act, 1961;

(13) "audit" means the examination of records,returns and other documents maintained orfurnished by the registered person under this Actor the rules made thereunder or under any otherlaw for the time being in force to verify thecorrectness of turnover declared, taxes paid,refund claimed and input tax credit availed, andto assess his compliance with the provisions ofthis Act or the rules made thereunder;

(14) "authorised bank" shall mean a bank or abranch of a bank authorised by the CentralGovernment to collect the tax or any other amountpayable under this Act;

(15) "authorised representative" means therepresentative as referred to under section 116;



(16) "Board" means the Central Board ofExcise and Customs constituted under the CentralBoards of Revenue Act, 1963;

(17) "business" includes—(a) any trade, commerce, manufacture,

profession, vocation, adventure, wager or anyother similar activity, whether or not it is fora pecuniary benefit;

(b) any activity or transaction inconnection with or incidental or ancillary tosub-clause (a);

(c) any activity or transaction in thenature of sub-clause (a), whether or not thereis volume, frequency, continuity or regularityof such transaction;

(d) supply or acquisition of goodsincluding capital goods and services in connectionwith commencement or closure of business;

(e) provision by a club, association,society, or any such body (for a subscriptionor any other consideration) of the facilities orbenefits to its members;

(f) admission, for a consideration, ofpersons to any premises;

(g) services supplied by a person as theholder of an office which has been acceptedby him in the course or furtherance of histrade, profession or vocation;

(h) services provided by a race club by wayof totalisator or a licence to book maker in suchclub; and

(i) any activity or transaction undertakenby the Central Government, a State Governmentor any local authority in which they areengaged as public authorities;



(18) "business vertical" means a distinguishablecomponent of an enterprise that is engaged in thesupply of individual goods or services or a groupof related goods or services which is subject torisks and returns that are different from those ofthe other business verticals.

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

(a) the nature of the goods or services;

(b) the nature of the productionprocesses;

(c) the type or class of customers for thegoods or services;

(d) the methods used to distribute thegoods or supply of services; and

(e) the nature of regulatory environment(wherever applicable), including banking,insurance or public utilities;

(19) "capital goods" means goods, the value ofwhich is capitalised in the books of account ofthe person claiming the input tax credit and whichare used or intended to be used in the course orfurtherance of business;

(20) "casual taxable person" means a personwho occasionally undertakes transactions involvingsupply of goods or services or both in the courseor furtherance of business, whether as principal,agent or in any other capacity, in the taxableterritory where he has no fixed place of business;

(21) "central tax" means the central goods andservices tax levied under section 9 of the CentralGoods and Services Tax Act;

(22) "cess" shall have the same meaning asassigned to it in the Goods and Services Tax(Compensation to States) Act;


(23) "chartered accountant" means a charteredaccountant as defined in clause (b) of sub-section (1)of section 2 of the Chartered Accountants Act, 1949;

(24) "Commissioner" means the Commissionerof State tax appointed under section 3 andincludes the Principal Chief Commissioner orChief Commissioner of State tax appointed undersection 3;

(25) "Commissioner in the Board" means theCommissioner referred to in section 168 of theCentral Goods and Services Tax Act;

(26) "common portal" means the commongoods and services tax electronic portal referredto in section 146;

(27) "common working days" shall mean suchdays in succession which are not declared asgazetted holidays by the Central Government orthe Government of Puducherry;

(28) "company secretary" means a companysecretary as defined in clause (c) of sub-section (1)of section 2 of the Company Secretaries Act, 1980;

(29) "competent authority" means suchauthority as may be notified by the Government;

(30) "composite supply" means a supply madeby a taxable person to a recipient consisting oftwo or more taxable supplies of goods or servicesor both, or any combination thereof, which arenaturally bundled and supplied in conjunctionwith each other in the ordinary course of business,one of which is a principal supply;




Illustration: Where goods are packed andtransported with insurance, the supply of goods,packing materials, transport and insurance is acomposite supply and supply of goods is aprincipal supply.

(31) "consideration" in relation to the supplyof 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, thesupply of goods or services or both, whetherby the recipient or by any other person butshall not include any subsidy given by theCentral Government or a State Government;

(b) the monetary value of any act orforbearance, in respect of, in response to, orfor the inducement of, the supply of goods orservices or both, whether by the recipient orby any other person but shall not include anysubsidy given by the Central Government or aState Government:

Provided that a deposit given in respect ofthe supply of goods or services or both shallnot be considered as payment made for suchsupply unless the supplier applies such depositas consideration for the said supply;

(32) "continuous supply of goods" meansa supply of goods which is provided, or agreedto be provided, continuously or on recurrentbasis, under a contract, whether or not by meansof a wire, cable, pipeline or other conduit, andfor which the supplier invoices the recipient ona regular or periodic basis and includes supply ofsuch goods as the Government may, subject tosuch conditions, as it may, by notification,specify;


(33) "continuous supply of services" means asupply of services which is provided, or agreedto be provided, continuously or on recurrent basis,under a contract, for a period exceeding threemonths with periodic payment obligations andincludes supply of such services as theGovernment may, subject to such conditions, asit may, by notification, specify;

(34) "conveyance" includes a vessel, an aircraftand a vehicle;

(35) "cost accountant" means a cost accountantas defined in clause (c) of sub-section (1) ofsection 2 of the Cost and Works AccountantsAct, 1959;

(36) "Council" means the Goods and ServicesTax Council established under article 279A of theConstitution;

(37) "credit note" means a document issued bya registered person under sub-section (1) ofsection 34;

(38) "debit note" means a document issued bya registered person under sub-section (3) ofsection 34;

(39) "deemed exports" means such supplies ofgoods as may be notified under section 147;

(40) "designated authority" means suchauthority as may be notified by the Commissioner;

(41) "document" includes written or printedrecord of any sort and electronic record as definedin clause (t) of section 2 of the InformationTechnology Act, 2000;




(42) "drawback" in relation to any goodsmanufactured in India and exported, means therebate of duty, tax or cess chargeable on anyimported inputs or on any domestic inputs orinput services used in the manufacture of suchgoods;

(43) "electronic cash ledger" means theelectronic cash ledger referred to in sub-section(1) of section 49;

(44) "electronic commerce" means the supplyof goods or services or both, including digitalproducts over digital or electronic network;

(45) "electronic commerce operator" meansany person who owns, operates or manages digitalor electronic facility or platform for electroniccommerce;

(46) "electronic credit ledger" means theelectronic credit ledger referred to in sub-section (2) of section 49;

(47) "exempt supply" means supply of anygoods or services or both which attracts nil rateof tax or which may be wholly exempt from taxunder section 11, or under section 6 of theIntegrated Goods and Services Tax Act, andincludes non-taxable supply;

(48) "existing law" means any law, notification,order, rule or regulation relating to levy andcollection of duty or tax on goods or services orboth passed or made before the commencementof this Act by the Legislature or any Authority orperson having the power to make such law,notification, order, rule or regulation;

(49) "family" means,-

(i) the spouse and children of theperson, and


(ii) the parents, grand-parents, brothersand sisters of the person if they are wholly ormainly 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 ofpermanence and suitable structure in terms ofhuman and technical resources to supplyservices, or to receive and use services for itsown needs;

(51) "Fund" means the Consumer Welfare Fundestablished under section 57;

(52) "goods'' means every kind of movableproperty other than money and securities butincludes actionable claim, growing crops, grassand things attached to or forming part of the landwhich are agreed to be severed before supply orunder a contract of supply;

(53) "Government" means the Government ofthe Union territory of Puducherry;

(54) "Goods and Services Tax (Compensationto 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 undersection 48 to act as such practitioner;

(56) "India" means the territory of India asreferred to in article 1 of the Constitution, itsterritorial waters, seabed and sub-soil underlyingsuch waters, continental shelf, exclusiveeconomic zone or any other maritime zone asreferred to in the Territorial Waters, ContinentalShelf, Exclusive Economic Zone and otherMaritime Zones Act, 1976, and the air spaceabove its territory and territorial waters;




(57) "Integrated Goods and Services Tax Act"means the Integrated Goods and Services TaxAct, 2017;

(58) "integrated tax" means the integratedgoods and services tax levied under the IntegratedGoods and Services Tax Act;

(59) "input" means any goods other than capitalgoods used or intended to be used by a supplierin the course or furtherance of business;

(60) "input service" means any service used orintended to be used by a supplier in the courseor furtherance of business;

(61) "Input Service Distributor" means an officeof the supplier of goods or services or both whichreceives tax invoices issued under section 31towards the receipt of input services and issues aprescribed document for the purposes ofdistributing the credit of central tax, State tax,integrated tax or Union territory tax paid on thesaid services to a supplier of taxable goods orservices or both having the same PermanentAccount Number as that of the said office;

(62) "input tax" in relation to a registeredperson, means the central tax, State tax, integratedtax or Union territory tax charged on any supplyof goods or services or both made to him andincludes—

(a) the integrated goods and services taxcharged on import of goods;

(b) the tax payable under the provisionsof sub-sections (3) and (4) of section 9;

(c) the tax payable under the provisionsof sub-sections (3) and (4) of section 5 of theIntegrated Goods and Services Tax Act; or



(d) the tax payable under the provisionsof sub-sections (3) and (4) of section 9 of theCentral Goods and Services Tax Act,

but does not include the tax paid under thecomposition levy;

(63) "input tax credit" means the credit of inputtax;

(64) "intra-State supply of goods" shall havethe same meaning as assigned to it in section 8of the Integrated Goods and Services Tax Act;

(65) "intra-State supply of services" shall havethe same meaning as assigned to it in section 8of the Integrated Goods and Services Tax Act;

(66) "invoice" or "tax invoice" means the taxinvoice referred to in section 31;

(67) "inward supply" in relation to a person,shall mean receipt of goods or services or bothwhether by purchase, acquisition or any othermeans, with or without consideration;

(68) "job work" means any treatment orprocess undertaken by a person on goodsbelonging to another registered person and theexpression "job worker" shall be construedaccordingly;

(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 243P of the Constitution;

(c) a Municipal Committee, a ZillaParishad, a District Board, and any otherauthority legally entitled to, or entrusted bythe Central Government or any StateGovernment with the control or managementof a municipal or local fund;


(d) a Cantonment Board as defined insection 3 of the Cantonments Act, 2006;

(e) a Regional Council or a DistrictCouncil constituted under the Sixth Scheduleto the Constitution;

(f) a Development Board constitutedunder article 371 of the Constitution; or

(g) a Regional Council constituted underarticle 371A of the Constitution;

(70) "location of the recipient of services"means,-

(a) where a supply is received at a placeof business for which the registration has beenobtained, the location of such place ofbusiness;

(b) where a supply is received at a placeother than the place of business for whichregistration has been obtained (a fixedestablishment elsewhere), the location of suchfixed establishment;

(c) where a supply is received at morethan one establishment, whether the place ofbusiness or fixed establishment, the locationof the establishment most directly concernedwith the receipt of the supply; and

(d) in absence of such places, thelocation of the usual place of residence of therecipient;

(71) "location of the supplier of services"means,-

(a) where a supply is made from a placeof business for which the registration has beenobtained, the location of such place ofbusiness;



(b) where a supply is made from a placeother than the place of business for whichregistration has been obtained (a fixedestablishment elsewhere), the location of suchfixed establishment;

(c) where a supply is made from more thanone establishment, whether the place of business orfixed establishment, the location of theestablishment most directly concerned with theprovisions of the supply; and

(d) in absence of such places, thelocation of the usual place of residence of thesupplier;

(72) "manufacture" means processing of rawmaterial or inputs in any manner that results inemergence of a new product having a distinctname, character and use and the term"manufacturer" shall be construed accordingly;

(73) "market value" shall mean the full amountwhich a recipient of a supply is required to payin order to obtain the goods or services or bothof like kind and quality at or about the same timeand at the same commercial level where therecipient and the supplier are not related;

(74) "mixed supply" means two or moreindividual supplies of goods or services, or anycombination thereof, made in conjunction witheach other by a taxable person for a single pricewhere such supply does not constitute a compositesupply.

Illustration: A supply of a package consistingof canned foods, sweets, chocolates, cakes, dryfruits, aerated drinks and fruit juices whensupplied for a single price is a mixed supply.Each of these items can be supplied separatelyand is not dependent on any other. It shall not bea mixed supply if these items are suppliedseparately;


(75) "money" means the Indian legal tender orany foreign currency, cheque, promissory note,bill of exchange, letter of credit, draft, pay order,traveller cheque, money order, postal or electronicremittance or any other instrument recognized bythe Reserve Bank of India when used as aconsideration to settle an obligation or exchangewith Indian legal tender of another denominationbut shall not include any currency that is held forits numismatic value;

(76) "motor vehicle" shall have the samemeaning as assigned to it in clause (28) ofsection 2 of the Motor Vehicles Act, 1988;

(77) "non-resident taxable person" means anyperson who occasionally undertakes transactionsinvolving supply of goods or services or both,whether as principal or agent or in any othercapacity, but who has no fixed place of businessor residence in India;

(78) "non-taxable supply'' means a supply ofgoods or services or both which is not leviableto tax under this Act or under the IntegratedGoods and Services Tax Act;

(79) "non-taxable territory" means the territorywhich is outside the taxable territory;

(80) "notification" means a notificationpublished in the Official Gazette and theexpressions 'notify' and 'notified' shall beconstrued accordingly;

(81) "other territory" includes territories otherthan those comprising in a State and those referredto in sub-clauses (a) to (e) of clause (114);

(82) "output tax" in relation to a taxableperson, means the tax chargeable under this Acton taxable supply of goods or services or bothmade by him or by his agent but excludes taxpayable by him on reverse charge basis;



(83) "outward supply" in relation to a taxableperson, means supply of goods or services orboth, whether by sale, transfer, barter, exchange,licence, rental, lease or disposal or any othermode, made or agreed to be made by such personin 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 ofindividuals, whether incorporated or not, inIndia or outside India;

(g) any corporation established by or underany Central Act, State Act or Provincial Act ora Government company as defined in clause(45) of section 2 of the Companies Act, 2013;

(h) any body corporate incorporated by orunder the laws of a country outside India;

(i) a co-operative society registered underany law relating to co-operative societies;

(j) a local authority;

(k) Central Government or a StateGovernment;

(l) society as defined under the SocietiesRegistration Act, 1860;

(m) trust; and

(n) every artificial juridical person, not fallingwithin any of the above;




(85) "place of business" includes—(a) a place from where the business is

ordinarily carried on, and includes awarehouse, a godown or any other place wherea taxable person stores his goods, supplies orreceives goods or services or both; or

(b) a place where a taxable personmaintains his books of account; or

(c) a place where a taxable person isengaged in business through an agent, bywhatever name called;

(86) "place of supply" means the place ofsupply as referred to in Chapter V of theIntegrated Goods and Services Tax Act;

(87) "prescribed'' means prescribed by rulesmade under this Act on the recommendations ofthe Council;

(88) "principal" means a person on whosebehalf an agent carries on the business of supplyor receipt of goods or services or both;

(89) "principal place of business" means theplace of business specified as the principal placeof business in the certificate of registration;

(90) "principal supply" means the supply ofgoods or services which constitutes thepredominant element of a composite supply andto which any other supply forming part of thatcomposite supply is ancillary;

(91) "proper officer" in relation to anyfunction to be performed under this Act, meansthe Commissioner or the officer of the State taxwho is assigned that function by theCommissioner;

(92) "quarter" shall mean a period comprisingthree consecutive calendar months, ending on thelast day of March, June, September and Decemberof a calendar year;


(93) "recipient" of supply of goods or servicesor both, means—

(a) where a consideration is payable for thesupply of goods or services or both, theperson who is liable to pay that consideration;

(b) where no consideration is payable forthe supply of goods, the person to whom thegoods are delivered or made available, or towhom possession or use of the goods is givenor made available; and

(c) where no consideration is payable forthe supply of a service, the person to whom theservice is rendered,

and any reference to a person to whom asupply is made shall be construed as areference to the recipient of the supply andshall include an agent acting as such on behalfof the recipient in relation to the goods orservices or both supplied;

(94) "registered person" means a person whois registered under section 25 but does notinclude a person having a Unique IdentityNumber.

(95) "regulations" means the regulations madeby the Government under this Act on therecommendations of the Council;

(96) "removal'' in relation to goods, means-

(a) despatch of the goods for delivery by thesupplier thereof or by any other person actingon behalf of such supplier; or

(b) collection of the goods by the recipientthereof or by any other person acting onbehalf of such recipient;

(97) "return" means any return prescribed orotherwise required to be furnished by or underthis Act or the rules made thereunder;


(98) "reverse charge'' means the liability to paytax by the recipient of supply of goods or servicesor both instead of the supplier of such goods orservices or both under sub-section (3) or sub-sect ion (4) of section 9, or under sub-section(3) or sub-section (4) of section 5 of the IntegratedGoods and Services Tax Act;

(99) "Revisional Authority" means an authorityappointed or authorised for revision of decisionor orders as referred to in section 108;

(100) "Schedule" means a Schedule appendedto this Act;

(101) "securities" shall have the same meaningas assigned to it in clause (h) of section 2 of theSecurities Contracts (Regulation) Act, 1956;

(102) "services" means anything other thangoods, money and securities but includesactivities relating to the use of money or itsconversion by cash or by any other mode, fromone form, currency or denomination, to anotherform, currency or denomination for which aseparate consideration is charged;

(103) "State" means the Union territory ofPuducherry;

(104) "State tax" means the tax levied underthis Act;

(105) "supplier" in relation to any goods orservices or both, shall mean the person supplyingthe said goods or services or both and shallinclude an agent acting as such on behalf of suchsupplier in relation to the goods or services orboth supplied;



(106) "tax period'' means the period for whichthe return is required to be furnished;

(107) "taxable person" means a person who isregistered or liable to be registered under section22 or section 24;

(108) "taxable supply'' means a supply ofgoods or services or both which is leviable to taxunder this Act;

(109) "taxable territory'' means the territory towhich the provisions of this Act apply;

(110) "telecommunication service" meansservice of any description (including electronicmail, voice mail, data services, audio textservices, video text services, radio paging andcellular mobile telephone services) which ismade available to users by means of anytransmission or reception of signs, signals,writing, images and sounds or intelligence of anynature, by wire, radio, visual or otherelectromagnetic means;

(111) "the Central Goods and Services Tax Act"means the Central Goods and Services TaxAct, 2017;

(112) "turnover in State" or "turnover in Unionterritory" means the aggregate value of all taxablesupplies (excluding the value of inward supplieson which tax is payable by a person on reversecharge basis) and exempt supplies made within aState or Union territory by a taxable person,exports of goods or services or both and inter-State supplies of goods or services or both madefrom the State or Union territory by the saidtaxable 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 theperson is incorporated or otherwise legallyconstituted;

(114) "Union territory" means the territory of,-

(a) the Andaman and Nicobar Islands;

(b) Lakshadweep;

(c) Dadra and Nagar Haveli;

(d) Daman and Diu;

(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 separateUnion territory;

(115) "Union territory tax" means the Unionterritory goods and services tax levied under theUnion Territory Goods and Services Tax Act;

(116) "Union Territory Goods and Services TaxAct" means the Union Territory Goods andServices 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 theidentities of their potential suppliers are eitherindicated on the instrument itself or in relateddocumentation, including the terms andconditions of use of such instrument;

(119) "works contract" means a contract forbuilding, construction, fabrication, completion,erection, installation, fitting out, improvement,modification, repair, maintenance, renovation,alteration or commissioning of any immovableproperty wherein transfer of property in goods(whether as goods or in some other form) isinvolved in the execution of such contract;

(120) words and expressions used and notdefined in this Act but defined in the IntegratedGoods and Services Tax Act, the Central Goodsand Services Tax Act, the Union Territory Goodsand Services Tax Act and the Goods and ServicesTax (Compensation to States) Act shall have thesame meanings as assigned to them in thoseActs.

CHAPTER II

ADMINISTRATION

3. The Government shall, by notification, appointthe following classes of officers for the purposes ofthis Act, namely:—

(a) Principal Chief Commissioner of State tax,(b) Chief Commissioner of State tax,(c) Commissioner of State tax,(d) Special Commissioner of State tax,(e) Additional Commissioners of State tax,(f) Joint Commissioners of State tax,(g) Deputy Commissioners of State tax,(h) Assistant Commissioners of State tax, and(i) any other class of officers as it may deem

fit:

Officersunder thisAct.


Provided that, the officers appointed under thePuducherry Value Added Tax Act, 2007 shall be deemedto be the officers appointed under the provisions of thisAct.

4. (1) The Government may, in addition to theofficers as may be notified under section 3, appointsuch persons as it may think fit to be the officersunder this Act.

(2) The Commissioner shall have jurisdictionover the whole of the State, the Special Commissionerand an Additional Commissioner in respect of all orany of the functions assigned to them, shall havejurisdiction over the whole of the State or where theState Government so directs, over any local areathereof, and all other officers shall, subject to suchconditions as may be specified, have jurisdiction overthe whole of the State or over such local areas as theCommissioner may, by order, specify.

5. (1) Subject to such conditions and limitationsas the Commissioner may impose, an officer of Statetax may exercise the powers and discharge the dutiesconferred or imposed on him under this Act.

(2) An officer of State tax may exercise thepowers and discharge the duties conferred or imposedunder this Act on any other officer of State tax who issubordinate to him.

(3) The Commissioner may, subject to suchconditions and limitations as may be specified in thisbehalf by him, delegate his powers to any other officerwho is subordinate to him.

(4) Notwithstanding anything contained in thissection, an Appellate Authority shall not exercise thepowers and discharge the duties conferred or imposedon any other officer of State tax.

ActNo. 9of 2007.

Appointmentof officers.

Powers ofofficers.


6. (1) Without prejudice to the provisions of thisAct, the officers appointed under the Central Goods andServices Tax Act are authorised to be the properofficers for the purposes of this Act, subject to suchconditions as the Government shall, on therecommendations of the Council, by notification,specify.

(2) Subject to the conditions specified in thenotification issued under sub-section (1),-

(a) where any proper officer issues an orderunder this Act, he shall also issue an order underthe Central Goods and Services Tax Act, asauthorised by the said Act under intimation to thejurisdictional officer of central tax;

(b) where a proper officer under the CentralGoods and Services Tax Act has initiated anyproceedings on a subject matter, no proceedingsshall be initiated by the proper officer under thisAct on the same subject matter.

(3) Any proceedings for rectification, appeal andrevision, wherever applicable, of any order passed byan officer appointed under this Act, shall not liebefore an officer appointed under the Central Goodsand Services Tax Act.

CHAPTER III

LEVY AND COLLECTION OF TAX

7. (1) For the purposes of this Act, the expression"supply" includes—

(a) all forms of supply of goods or services orboth such as sale, transfer, barter, exchange,license, rental, lease or disposal made or agreedto be made for a consideration by a person in thecourse or furtherance of business;

(b) import of services for a considerationwhether or not in the course or furtherance ofbusiness;

Authorisationof officersof central taxas properofficer incertaincircumstances.

Scope ofsupply.


(c) the activities specified in Schedule I, madeor agreed to be made without a consideration; and

(d) the activities to be treated as supply ofgoods or supply of services as referred to inSchedule II.

(2) Notwithstanding anything contained in sub-section (1),—

(a) activities or transactions specified inSchedule III; or

(b) such activities or transactions undertakenby the Central Government, a State Governmentor any local authority in which they are engagedas public authorities, as may be notified by theGovernment on the recommendations of theCouncil,

shall be treated neither as a supply of goods nor asupply of services.

(3) Subject to the provisions of sub-sections (1)and (2), the Government may, on the recommendationsof the Council, specify, by notification, thetransactions that are to be treated as-

(a) a supply of goods and not as a supply ofservices; or

(b) a supply of services and not as a supply ofgoods.

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

(a) a composite supply comprising two or moresupplies, one of which is a principal supply, shallbe treated as a supply of such principal supply;and

Tax liabilityon compositeand mixedsupplies.


(b) a mixed supply comprising two or moresupplies shall be treated as a supply of thatparticular supply which attracts the highest rateof tax.

9. (1) Subject to the provisions of sub-section (2),there shall be levied a tax called the Puducherry goodsand services tax on all intra-State supplies of goodsor services or both, except on the supply of alcoholicliquor for human consumption, on the valuedetermined under section 15 and at such rates, notexceeding twenty per cent., as may be notified by theGovernment on the recommendations of the Counciland collected in such manner as may be prescribed andshall be paid by the taxable person.

(2) The State tax on the supply of petroleumcrude, high speed diesel, motor spirit (commonlyknown as petrol), natural gas and aviation turbine fuel,shall be levied with effect from such date as may benotified by the Government on the recommendationsof the Council.

(3) The Government may, on the recommendationsof the Council, by notification, specify categories ofsupply of goods or services or both, the tax on whichshall be paid on reverse charge basis by the recipientof such goods or services or both and all theprovisions of this Act shall apply to such recipient asif he is the person liable for paying the tax in relationto the supply of such goods or services or both.

(4) The State tax in respect of the supply oftaxable goods or services or both by a supplier, whois not registered, to a registered person shall be paidby such person on reverse charge basis as the recipientand all the provisions of this Act shall apply to suchrecipient as if he is the person liable for paying thetax in relation to the supply of such goods or servicesor both.

Levy andcollection.


(5) The Government may, on the recommendationsof the Council, by notification, specify categories ofservices the tax on intra-State supplies of which shallbe paid by the electronic commerce operator if suchservices are supplied through it, and all the provisionsof this Act shall apply to such electronic commerceoperator as if he is the supplier liable for paying thetax in relation to the supply of such services:

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

Provided further that where an electroniccommerce operator does not have a physical presencein the taxable territory and also he does not have arepresentative in the said territory, such electroniccommerce operator shall appoint a person in thetaxable territory for the purpose of paying tax and suchperson shall be liable to pay tax.

10. (1) Notwithstanding anything to the contrarycontained in this Act but subject to the provisions ofsub-sections (3) and (4) of section 9, a registeredperson, whose aggregate turnover in the precedingfinancial year did not exceed fifty lakh rupees may optto pay, in lieu of the tax payable by him, an amountcalculated at such rate as may be prescribed, but notexceeding,-

(a) one per cent. of the turnover in State incase of a manufacturer,

(b) two and a half per cent. of the turnover inState in case of persons engaged in makingsupplies referred to in clause (b) of paragraph 6of Schedule II, and

(c) half per cent. of the turnover in State incase of other suppliers,

subject to such conditions and restrictions asmay be prescribed:

Compositionlevy.


Provided that the Government may, by notification,increase the said limit of fifty lakh rupees to suchhigher amount, not exceeding one crore rupees, as maybe recommended by the Council.

(2) The registered person shall be eligible to optunder sub-section (1), if—

(a) he is not engaged in the supply of servicesother than supplies referred to in clause (b) ofparagraph 6 of Schedule II;

(b) he is not engaged in making any supply ofgoods which are not leviable to tax under this Act;

(c) he is not engaged in making any inter-Stateoutward supplies of goods;

(d) he is not engaged in making any supply ofgoods through an electronic commerce operatorwho is required to collect tax at source undersection 52; and

(e) he is not a manufacturer of such goods asmay be notified by the Government on therecommendations of the Council:

Provided that where more than one registeredperson are having the same Permanent AccountNumber (issued under the Income-tax Act, 1961), theregistered person shall not be eligible to opt for thescheme under sub-section (1) unless all suchregistered persons opt to pay tax under that sub-section.

(3) The option availed of by a registered personunder sub-section (1) shall lapse with effect from theday on which his aggregate turnover during a financialyear exceeds the limit specified under sub-section (1).

(4) A taxable person to whom the provisions ofsub-section (1) apply shall not collect any tax fromthe recipient on supplies made by him nor shall he beentitled to any credit of input tax.



(5) If the proper officer has reasons to believethat a taxable person has paid tax under sub-section (1)despite not being eligible, such person shall, inaddition to any tax that may be payable by him underany other provisions of this Act, be liable to a penaltyand the provisions of section 73 or section 74 shall,mutatis mutandis, apply for determination of tax andpenalty.

11. (1) Where the Government is satisfied thatit 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 suchconditions as may be specified therein, goods orservices or both of any specified description from thewhole or any part of the tax leviable thereon witheffect from such date as may be specified in suchnotification.

(2) Where the Government is satisfied that it isnecessary in the public interest so to do, it may, onthe recommendations of the Council, by special orderin each case, under circumstances of an exceptionalnature to be stated in such order, exempt frompayment of tax any goods or services or both on whichtax is leviable.

(3) The Government may, if it considersnecessary or expedient so to do for the purpose ofclarifying the scope or applicability of any notificationissued under sub-section (1) or order issued undersub-section (2), insert an explanation in suchnotification or order, as the case may be, bynotification at any time within one year of issue of thenotification under sub-section (1) or order under sub-section (2), and every such explanation shall haveeffect as if it had always been the part of the first suchnotification or order, as the case may be.

(4) Any notification issued by the CentralGovernment, on the recommendations of the Council,under sub-section (1) of section 11 or order issued

Power tograntexemptionfrom tax.


under sub-section (2) of the said section of the CentralGoods and Services Tax Act shall be deemed to be anotification or, as the case may be, an order issuedunder this Act.

Explanation.—For the purposes of this section,where an exemption in respect of any goods orservices or both from the whole or part of the taxleviable thereon has been granted absolutely, theregistered person supplying such goods or services orboth shall not collect the tax, in excess of the effectiverate, on such supply of goods or services or both.

CHAPTER IV

T I M E AND VALUE OF SUPP LY

12. (1) The liability to pay tax on goods shallarise at the time of supply, as determined inaccordance with the provisions of this section.

(2) The time of supply of goods shall be theearlier of the following dates, namely:-

(a) the date of issue of invoice by the supplieror the last date on which he is required, undersub-section (1) of section 31, to issue the invoicewith respect to the supply; or

(b) the date on which the supplier receives thepayment with respect to the supply:

Provided that where the supplier of taxable goodsreceives an amount up to one thousand rupees inexcess of the amount indicated in the tax invoice, thetime of supply to the extent of such excess amountshall, at the option of the said supplier, be the date ofissue 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 madeto the extent it is covered by the invoice or, as the casemay be, the payment.

Time ofsupply ofgoods.


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 inhis books of account or the date on which the paymentis credited to his bank account, whichever is earlier.

(3) In case of supplies in respect of which tax ispaid or liable to be paid on reverse charge basis, thetime of supply shall be the earliest of the followingdates, namely:—

(a) the date of the receipt of goods; or

(b) the date of payment as entered in the booksof account of the recipient or the date on whichthe payment is debited in his bank account,whichever is earlier; or

(c) the date immediately following thirty daysfrom the date of issue of invoice or any otherdocument, by whatever name called, in lieuthereof by the supplier:

Provided that where it is not possible todetermine the time of supply under clause (a) or clause(b) or clause (c), the time of supply shall be the dateof entry in the books of account of the recipient ofsupply.

(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 supplyis identifiable at that point; or

(b) the date of redemption of voucher, in allother cases.

(5) Where it is not possible to determine thetime of supply under the provisions of sub-section (2)or sub-section (3) or sub-section (4), the time ofsupply shall—

(a) in a case where a periodical return has tobe filed, be the date on which such return is tobe filed; or


(b) in any other case, be the date on which thetax is paid.

(6) The time of supply to the extent it relates toan addition in the value of supply by way of interest,late fee or penalty for delayed payment of anyconsideration shall be the date on which the supplierreceives such addition in value.

13. (1) The liability to pay tax on services shallarise at the time of supply, as determined inaccordance with the provisions of this section.

(2) The time of supply of services shall be theearliest of the following dates, namely:—

(a) the date of issue of invoice by the supplier,if the invoice is issued within the periodprescribed under sub-section (2) of section 31or the date of receipt of payment, whichever isearlier; or

(b) the date of provision of service, if theinvoice is not issued within the period prescribedunder sub-section (2) of section 31 or the dateof receipt of payment, whichever is earlier; or

(c) the date on which the recipient shows thereceipt of services in his books of account, in acase where the provisions of clause (a) or clause(b) do not apply:

Provided that where the supplier of taxableservice receives an amount upto one thousand rupeesin excess of the amount indicated in the tax invoice,the time of supply to the extent of such excess amountshall, at the option of the said supplier, be the date ofissue of invoice relating to such excess amount.

Explanation.—For the purposes of clauses (a)and (b)-

(i) the supply shall be deemed to have beenmade to the extent it is covered by the invoiceor, as the case may be, the payment;

Time ofsupply ofservices.


(ii) "the date of receipt of payment" shall bethe date on which the payment is entered in thebooks of account of the supplier or the date onwhich the payment is credited to his bankaccount, whichever is earlier.

(3) In case of supplies in respect of which tax ispaid or liable to be paid on reverse charge basis, thetime of supply shall be the earlier of the followingdates, namely:—

(a) the date of payment as entered in the booksof account of the recipient or the date on whichthe payment is debited in his bank account,whichever is earlier; or

(b) the date immediately following sixty daysfrom the date of issue of invoice or any otherdocument, by whatever name called, in lieuthereof by the supplier:

Provided that where it is not possible todetermine the time of supply under clause (a) or clause(b), the time of supply shall be the date of entry in thebooks of account of the recipient of supply:

Provided further that in case of supply byassociated enterprises, where the supplier of serviceis located outside India, the time of supply shall be thedate of entry in the books of account of the recipientof 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 supplyis identifiable at that point; or

(b) the date of redemption of voucher, in allother cases.


(5) Where it is not possible to determine thetime of supply under the provisions of sub-section (2)or sub-section (3) or sub-section (4), the time ofsupply shall—

(a) in a case where a periodical return has tobe filed, be the date on which such return is tobe filed; or

(b) in any other case, be the date on which thetax is paid.

(6) The time of supply to the extent it relates toan addition in the value of supply by way of interest,late fee or penalty for delayed payment of anyconsideration shall be the date on which the supplierreceives such addition in value.

14. Notwithstanding anything contained insection 12 or section 13, the time of supply, wherethere is a change in the rate of tax in respect of goodsor services or both, shall be determined in thefollowing manner, namely:—

(a) in case the goods or services or both havebeen supplied before the change in rate of tax,—

(i) where the invoice for the same has beenissued and the payment is also received afterthe change in rate of tax, the time of supplyshall be the date of receipt of payment or thedate of issue of invoice, whichever is earlier;o r

(ii) where the invoice has been issued priorto the change in rate of tax but payment isreceived after the change in rate of tax, thetime of supply shall be the date of issue ofinvoice; or

(iii) where the payment has been receivedbefore the change in rate of tax, but theinvoice for the same is issued after the changein rate of tax, the time of supply shall be thedate of receipt of payment;

Change inrate of tax inrespect ofsupply ofgoods orservices.


(b) in case the goods or services or both havebeen supplied after the change in rate of tax,—

(i) where the payment is received after thechange in rate of tax but the invoice has beenissued prior to the change in rate of tax, thetime of supply shall be the date of receipt ofpayment; or

(ii) where the invoice has been issued andpayment is received before the change in rateof tax, the time of supply shall be the date ofreceipt of payment or date of issue of invoice,whichever is earlier; or

(iii) where the invoice has been issued afterthe change in rate of tax but the payment isreceived before the change in rate of tax, thetime of supply shall be the date of issue ofinvoice:

Provided that the date of receipt of payment shallbe the date of credit in the bank account if such creditin the bank account is after four working days from thedate of change in the rate of tax.

Explanation.—For the purposes of this section,"the date of receipt of payment" shall be the date onwhich the payment is entered in the books of accountof the supplier or the date on which the payment iscredited to his bank account, whichever is earlier.

15. (1) The value of a supply of goods orservices or both shall be the transaction value, whichis the price actually paid or payable for the said supplyof goods or services or both where the supplier andthe recipient of the supply are not related and the priceis the sole consideration for the supply.

(2) The value of supply shall include—

(a) any taxes, duties, cesses, fees and chargeslevied under any law for the time being in forceother than this Act, the Central Goods and

Value oftaxablesupply.


Services Tax Act and the Goods and Services Tax(Compensation to States) Act, if charged separatelyby the supplier;

(b) any amount that the supplier is liable to payin relation to such supply but which has beenincurred by the recipient of the supply and notincluded in the price actually paid or payable forthe goods or services or both;

(c) incidental expenses, including commissionand packing, charged by the supplier to therecipient of a supply and any amount charged foranything done by the supplier in respect of thesupply of goods or services or both at the timeof, or before delivery of goods or supply ofservices;

(d) interest or late fee or penalty for delayedpayment of any consideration for any supply; and

(e) subsidies directly linked to the priceexcluding subsidies provided by the CentralGovernment and State Governments.

Explanation.—For the purposes of this sub-section, the amount of subsidy shall be includedin the value of supply of the supplier whoreceives the subsidy.

(3) The value of the supply shall not include anydiscount which is given—

(a) before or at the time of the supply if suchdiscount has been duly recorded in the invoiceissued in respect of such supply; and

(b) after the supply has been effected, if-

(i) such discount is established in terms ofan agreement entered into at or before the timeof such supply and specifically linked to relevantinvoices; and


(ii) input tax credit as is attributable tothe discount on the basis of document issuedby the supplier has been reversed by therecipient of the supply.

(4) Where the value of the supply of goods orse rv ice s o r b o th ca nno t b e d e te rmi ne d u nd e rsub-section (1), the same shall be determined in suchmanner as may be prescribed.

(5) Notwithstanding anything contained insub-section (1) or sub-section (4), the value of suchsupplies as may be notified by the Government on therecommendations of the Council shall be determinedin 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 directorsof one another's businesses;

(ii) such persons are legally recognisedpartners in business;

(iii) such persons are employer andemployee;

(iv) any person directly or indirectlyowns, controls or holds twenty-five per cent.or more of the outstanding voting stock orshares of both of them;

(v) one of them directly or indirectlycontrols the other;

(vi) both of them are directly orindirectly controlled by a third person;

(vii) together they directly or indirectlycontrol a third person; or

(viii) they are members of the samefamily;


(b) the term "person" also includes legalpersons.

(c) persons who are associated in the businessof one another in that one is the sole agent orsole distributor or sole concessionaire, howsoeverdescribed, of the other, shall be deemed to berelated.

CHAPTER V

INPUT TAX CREDIT

16. (1) Every registered person shall, subject tosuch conditions and restrictions as may be prescribedand in the manner specified in section 49, be entitledto take credit of input tax charged on any supply ofgoods or services or both to him which are used orintended to be used in the course or furtherance of hisbusiness and the said amount shall be credited to theelectronic credit ledger of such person.

(2) Notwithstanding anything contained in thissection, no registered person shall be entitled to thecredit of any input tax in respect of any supply ofgoods or services or both to him unless,—

(a) he is in possession of a tax invoice or debitnote issued by a supplier registered under thisAct, or such other tax paying documents as maybe prescribed;

(b) he has received the goods or services orboth.

Explanation.—For the purposes of thisclause, it shall be deemed that the registeredperson has received the goods where the goodsare delivered by the supplier to a recipient or anyother person on the direction of such registeredperson, whether acting as an agent or otherwise,before or during movement of goods, either byway of transfer of documents of title to goodsor otherwise;

Eligibilityandconditionsfor takinginput taxcredit.


(c) subject to the provisions of section 41, thetax charged in respect of such supply has beenactually paid to the Government, either in cashor through utilisation of input tax creditadmissible in respect of the said supply; and

(d) he has furnished the return under section 39:

Provided that where the goods against an invoiceare received in lots or instalments, the registeredperson shall be entitled to take credit upon receipt ofthe last lot or instalment:

Provided further that where a recipient fails topay to the supplier of goods or services or both, otherthan the supplies on which tax is payable on reversecharge basis, the amount towards the value of supplyalong with tax payable thereon within a period of onehundred and eighty days from the date of issue ofinvoice by the supplier, an amount equal to the inputtax credit availed by the recipient shall be added to hisoutput tax liability, along with interest thereon, in suchmanner as may be prescribed:

Provided also that the recipient shall be entitledto avail of the credit of input tax on payment made byhim of the amount towards the value of supply of goodsor services or both along with tax payable thereon.

(3) Where the registered person has claimeddepreciation on the tax component of the cost ofcapital goods and plant and machinery under theprovisions of the Income-tax Act, 1961, the input taxcredit on the said tax component shall not be allowed.

(4) A registered person shall not be entitled totake input tax credit in respect of any invoice or debitnote for supply of goods or services or both after thedue date of furnishing of the return under section 39for the month of September following the end offinancial year to which such invoice or invoice relatingto such debit note pertains or furnishing of the relevantannual return, whichever is earlier.



17. (1) Where the goods or services or both areused by the registered person partly for the purposeof any business and partly for other purposes, theamount of credit shall be restricted to so much of theinput tax as is attributable to the purposes of hisbusiness.

(2) Where the goods or services or both are usedby the registered person partly for effecting taxablesupplies including zero-rated supplies under this Actor under the Integrated Goods and Services Tax Act andpartly for effecting exempt supplies under the saidActs, the amount of credit shall be restricted to somuch of the input tax as is attributable to the saidtaxable supplies including zero-rated supplies.

(3) The value of exempt supply under sub-section(2) shall be such as may be prescribed, and shallinclude supplies on which the recipient is liable to paytax on reverse charge basis, transactions in securities,sale of land and, subject to clause (b) of paragraph 5of Schedule II, sale of building.

(4) A banking company or a financial institutionincluding a non-banking financial company, engaged insupplying services by way of accepting deposits,extending loans or advances shall have the option toeither comply with the provisions of sub-section (2),or avail of, every month, an amount equal to fifty percent. of the eligible input tax credit on inputs, capitalgoods and input services in that month and the restshall lapse:

Provided that the option once exercised shall notbe withdrawn during the remaining part of the financialyear:

Provided further that the restriction of fifty percent. shall not apply to the tax paid on supplies madeby one registered person to another registered personhaving the same Permanent Account Number.

Apportionmentof credit andblockedcredits.


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

(a) motor vehicles and other conveyancesexcept when they are used—

(i) for making the following taxablesupplies, namely:—

(A) further supply of such vehicles orconveyances; or

(B) transportation of passengers; or

(C) imparting training on driving,flying, navigating such vehicles orconveyances;

(ii) for transportation of goods;

(b) the following supply of goods or servicesor both:-

(i) food and beverages, outdoor catering,beauty treatment, health services, cosmeticand plastic surgery except where an inwardsupply of goods or services or both of aparticular category is used by a registeredperson for making an outward taxable supplyof the same category of goods or services orboth or as an element of a taxable compositeor mixed supply;

(ii) membership of a club, health andfitness centre;

(iii) rent-a-cab, life insurance and healthinsurance except where -

(A) the Government notifies theservices which are obligatory for anemployer to provide to its employeesunder any law for the time being inforce; or


(B) such inward supply of goods orservices or both of a particular categoryis used by a registered person for makingan outward taxable supply of the samecategory of goods or services or both oras part of a taxable composite or mixedsupply; and

(iv) travel benefits extended toemployees on vacation such as leave or hometravel concession;

(c) works contract services when supplied forconstruction of an immovable property (otherthan plant and machinery) except where it is aninput service for further supply of works contractservice;

(d) goods or services or both received by ataxable person for construction of an immovableproperty (other than plant and machinery) on hisown account including when such goods orservices or both are used in the course orfurtherance of business;

Explanation.—For the purposes of clauses (c)and (d), the expression "construction" includes re-construction, renovation, additions or alterations orrepairs, to the extent of capitalisation, to the saidimmovable property;

(e) goods or services or both on which tax hasbeen paid under section 10;

(f) goods or services or both received by a non-resident taxable person except on goods importedby him;

(g) goods or services or both used forpersonal consumption;

(h) goods lost, stolen, destroyed, written offor disposed of by way of gift or free samples;and


(i) any tax paid in accordance with theprovisions of sections 74, 129 and 130.

(6) The Government may prescribe the manner inwhich the credit referred to in sub-sections (1) and (2)may be attributed.

Explanation.— For the purposes of this Chapterand Chapter VI, the expression "plant and machinery"means apparatus, equipment, and machinery fixed toearth by foundation or structural support that are usedfor making outward supply of goods or services or bothand includes such foundation and structural supportsbut excludes-

(i) land, building or any other civilstructures;

(ii) telecommunication towers; and

(iii) pipelines laid outside the factorypremises.

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

(a) a person who has applied for registrationunder this Act within thirty days from the date onwhich he becomes liable to registration and hasbeen granted such registration shall be entitledto take credit of input tax in respect of inputsheld in stock and inputs contained in semi-finished or finished goods held in stock on theday immediately preceding the date from whichhe becomes liable to pay tax under the provisionsof this Act;

(b) a person who takes registration under sub-section (3) of section 25 shall be entitled totake credit of input tax in respect of inputs heldin stock and inputs contained in semi-finished orfinished goods held in stock on the dayimmediately preceding the date of grant ofregistration;

Availabilityof credit inspecialcircumstances.


(c) where any registered person ceases to paytax under section 10, he shall be entitled to takecredit of input tax in respect of inputs held instock, inputs contained in semi-finished orfinished goods held in stock and on capital goodson the day immediately preceding the date fromwhich he becomes liable to pay tax under section 9:

Provided that the credit on capital goods shallbe reduced by such percentage points as may beprescribed;

(d) where an exempt supply of goods orservices or both by a registered person becomesa taxable supply, such person shall be entitled totake credit of input tax in respect of inputs heldin stock and inputs contained in semi-finished orfinished goods held in stock relatable to suchexempt supply and on capital goods exclusivelyused for such exempt supply on the dayimmediately preceding the date from which suchsupply becomes taxable:

Provided that the credit on capital goods shallbe reduced by such percentage points as may beprescribed.

(2) A registered person shall not be entitled totake input tax credit under sub-section (1) in respectof any supply of goods or services or both to him afterthe expiry of one year from the date of issue of taxinvoice relating to such supply.

(3) Where there is a change in the constitutionof a registered person on account of sale, merger,demerger, amalgamation, lease or transfer of thebusiness with the specific provisions for transfer ofliabilities, the said registered person shall be allowedto transfer the input tax credit which remainsunutilised in his electronic credit ledger to such sold,merged, demerged, amalgamated, leased or transferredbusiness in such manner as may be prescribed.


(4) Where any registered person who has availedof input tax credit opts to pay tax under section 10 or,where the goods or services or both supplied by himbecome wholly exempt, he shall pay an amount, by wayof debit in the electronic credit ledger or electroniccash ledger, equivalent to the credit of input tax inrespect of inputs held in stock and inputs contained insemi-finished or finished goods held in stock and oncapital goods, reduced by such percentage points asmay be prescribed, on the day immediately precedingthe date of exercising of such option or, as the casemay be, the date of such exemption:

Provided that after payment of such amount, thebalance of input tax credit, if any, lying in hiselectronic credit ledger shall lapse.

(5) The amount of credit under sub-section (1)and the amount payable under sub-section (4) shall becalculated in such manner as may be prescribed.

(6) In case of supply of capital goods or plant andmachinery, on which input tax credit has been taken,the registered person shall pay an amount equal to theinput tax credit taken on the said capital goods or plantand machinery reduced by such percentage points asmay be prescribed or the tax on the transaction valueof such capital goods or plant and machinerydetermined under section 15, whichever is higher:

Provided that where refractory bricks, moulds anddies, jigs and fixtures are supplied as scrap, the taxableperson may pay tax on the transaction value of suchgoods determined under section 15.

19. (1) The principal shall, subject to suchconditions and restrictions as may be prescribed, beallowed input tax credit on inputs sent to a job-workerfor job-work.

Taking inputtax credit inrespect ofinputs andcapital goodssent for jobwork.


(2) Notwithstanding anything contained inclause (b) of sub-section (2) of section 16, theprincipal shall be entitled to take credit of input taxon inputs even if the inputs are directly sent to a job-worker for job-work without being first brought to hisplace of business.

(3) Where the inputs sent for job-work are notreceived back by the principal after completion of job-work or otherwise or are not supplied from the placeof business of the job-worker in accordance withclause (a) or clause (b) of sub-section (1) of section143 within one year of being sent out, it shall bedeemed that such inputs had been supplied by theprincipal to the job-worker on the day when the saidinputs were sent out:

Provided that where the inputs are sent directlyto a job-worker, the period of one year shall becounted from the date of receipt of inputs by the job-worker.

(4) The principal shall, subject to suchconditions and restrictions as may be prescribed, beallowed 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 shallbe entitled to take credit of input tax on capital goodseven if the capital goods are directly sent to a job-worker for job-work without being first brought to hisplace of business.

(6) Where the capital goods sent for job-workare not received back by the principal within a periodof three years of being sent out, it shall be deemed thatsuch capital goods had been supplied by the principalto the job-worker on the day when the said capitalgoods were sent out:


Provided that where the capital goods are sentdirectly to a job-worker, the period of three years shallbe counted from the date of receipt of capital goodsby the job-worker.

(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs andfixtures, or tools sent out to a job-worker for job-work.

Explanation.— For the purpose of this section,"principal" means the person referred to in section 143.

20. (1) The Input Service Distributor shalldistribute the credit of State tax as State tax orintegrated tax and integrated tax as integrated tax orState tax, by way of issue of document containing theamount of input tax credit being distributed in suchmanner as may be prescribed.

(2) The Input Service Distributor may distributethe credit subject to the following conditions,namely:—

(a) the credit can be distributed to therecipients of credit against a documentcontaining such details as may be prescribed;

(b) the amount of the credit distributed shallnot exceed the amount of credit available fordistribution;

(c) the credit of tax paid on input servicesattributable to a recipient of credit shall bedistributed only to that recipient;

(d) the credit of tax paid on input servicesattributable to more than one recipient of creditshall be distributed amongst such recipients towhom the input service is attributable and suchdistribution shall be pro rata on the basis of theturnover in a State or turnover in a Union

Manner ofdistributionof credit byInputServiceDistributor.


territory of such recipient, during the relevantperiod, to the aggregate of the turnover of allsuch recipients to whom such input service isattributable and which are operational in thecurrent year, during the said relevant period;

(e) the credit of tax paid on input servicesattributable to all recipients of credit shall bedistributed amongst such recipients and suchdistribution shall be pro rata on the basis of theturnover in a State or turnover in a Unionterritory of such recipient, during the relevantperiod, to the aggregate of the turnover of allrecipients and which are operational in thecurrent year, during the said relevant period.

Explanation.—For the purposes of thissection,—

(a) the "relevant period" shall be—(i) if the recipients of credit have turnover

in their States or Union territories in thefinancial year preceding the year during whichcredit is to be distributed, the said financialyear; or

(ii) if some or all recipients of the creditdo not have any turnover in their States orUnion territories in the financial yearpreceding the year during which the credit isto be distributed, the last quarter for whichdetails of such turnover of all the recipientsare available, previous to the month duringwhich credit is to be distributed;

(b) the expression "recipient of credit" meansthe supplier of goods or services or both havingthe same Permanent Account Number as that ofthe Input Service Distributor;

(c) the term "turnover", in relation to anyregistered person engaged in the supply oftaxable goods as well as goods not taxable underthis Act, means the value of turnover, reduced by


the amount of any duty or tax levied under entry84 of List I of the Seventh Schedule to theConstitution and entry 51 and 54 of List II of thesaid Schedule.

21. Where the Input Service Distributordistributes the credit in contravention of theprovisions contained in section 20 resulting in excessdistribution of credit to one or more recipients ofcredit, the excess credit so distributed shall berecovered from such recipients along with interest, andthe provisions of section 73 or section 74, as the casemay be, shall, mutatis mutandis, apply fordetermination of amount to be recovered.

CHAPTER VI

REGISTRATION

22. (1) Every supplier making a taxable supply ofgoods or services or both in the State shall be liableto be registered under this Act if his aggregateturnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxablesupplies of goods or services or both from any of thespecial category States, he shall be liable to beregistered if his aggregate turnover in a financial yearexceeds ten lakh rupees.

(2) Every person who, on the day immediatelypreceding the appointed day, is registered or holds alicence under an existing law, shall be liable to beregistered under this Act with effect from theappointed day.

(3) Where a business carried on by a taxableperson registered under this Act is transferred, whetheron account of succession or otherwise, to anotherperson as a going concern, the transferee or thesuccessor, as the case may be, shall be liable to beregistered with effect from the date of such transferor succession.

Manner ofrecovery ofcreditdistributed inexcess.

Personsliable forregistration.


(4) Notwithstanding anything contained insub-sections (1) and (3), in a case of transfer pursuantto sanction of a scheme or an arrangement foramalgamation or, as the case may be, de-merger of twoor more companies pursuant to an order of a HighCourt, Tribunal or otherwise, the transferee shall beliable to be registered, with effect from the date onwhich the Registrar of Companies issues a certificateof incorporation giving effect to such order of theHigh Court or Tribunal.


(i) the expression "aggregate turnover" shallinclude all supplies made by the taxable person,whether on his own account or made on behalfof all his principals;

(ii) the supply of goods, after completion ofjob-work, by a registered job-worker shall betreated as the supply of goods by the principalreferred to in section 143, and the value of suchgoods shall not be included in the aggregateturnover 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 279A of theConstitution.

23. (1) The following persons shall not be liableto registration, namely:—

(a) any person engaged exclusively in thebusiness of supplying goods or services or boththat are not liable to tax or wholly exempt fromtax under this Act or under the Integrated Goodsand Services Tax Act;

(b) an agriculturist, to the extent of supply ofproduce out of cultivation of land.

Persons notliable forregistration.


(2) The Government may, on the recommendationsof the Council, by notification, specify the categoryof persons who may be exempted from obtainingregistration under this Act.

24. Notwithstanding anything contained insub-section (1) of section 22, the following categoriesof persons shall be required to be registered under thisAct,-

(i) persons making any inter-Statetaxable supply;

(ii) casual taxable persons makingtaxable supply;

(iii) persons who are required to pay taxunder reverse charge;

(iv) persons who are required to pay taxunder sub-section (5) of section 9;

(v) non-resident taxable persons makingtaxable supply;

(vi) persons who are required to deducttax under section 51, whether or not separatelyregistered under this Act;

(vii) persons who make taxable supply ofgoods or services or both on behalf of othertaxable persons whether as an agent orotherwise;

(viii) Input Service Distributor, whetheror not separately registered under this Act;

(ix) persons who supply goods orservices or both, other than supplies specifiedunder sub-section (5) of section 9, throughsuch electronic commerce operator who isrequired to collect tax at source under section 52;

(x) every electronic commerce operator;

Compulsoryregistrationin certaincases.


(xi) every person supplying onlineinformation and data base access or retrievalservices from a place outside India to a personin India, other than a registered person; and

(xii) such other person or class ofpersons as may be notified by the Governmenton the recommendations of the Council.

25. (1) Every person who is liable to beregistered under section 22 or section 24 shall applyfor registration within thirty days from the date onwhich he becomes liable to registration, in such mannerand subject to such conditions as may be prescribed:

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

Explanation.— Every person who makes asupply from the territorial waters of India shall obtainregistration in the State where the nearest point of theappropriate baseline is located in the State.

(2) A person seeking registration under this Actshall be granted a single registration:

Provided that a person having multiple businessverticals in the State may be granted a separateregistration for each business vertical, subject to suchconditions as may be prescribed.

(3) A person, though not liable to be registeredunder section 22 or section 24 may get himselfregistered voluntarily, and all provisions of this Act,as are applicable to a registered person, shall apply tosuch person.

(4) A person who has obtained or is required toobtain more than one registration, whether in one Stateor Union territory or more than one State or Unionterritory shall, in respect of each such registration, betreated as distinct persons for the purposes of thisAct.

Procedureforregistration.


(5) Where a person who has obtained or isrequired to obtain registration in a State or Unionterritory in respect of an establishment, has anestablishment in another State or Union territory, thensuch establishments shall be treated as establishmentsof distinct persons for the purposes of this Act.

(6) Every person shall have a Permanent AccountNumber issued under the Income-tax Act, 1961 inorder to be eligible for grant of registration:

Provided that a person required to deduct taxunder section 51 may have, in lieu of a PermanentAccount Number, a Tax Deduction and CollectionAccount Number issued under the said Act in order tobe eligible for grant of registration.

(7) Notwithstanding anything contained in sub-section (6), a non-resident taxable person may begranted registration under sub-section (1) on the basisof such other documents as may be prescribed.

(8) Where a person who is liable to be registeredunder this Act fails to obtain registration, the properofficer may, without prejudice to any action which maybe taken under this Act or under any other law for thetime being in force, proceed to register such personin such manner as may be prescribed.

(9) Notwithstanding anything contained insub-section (1),—

(a) any specialised agency of the UnitedNations Organisation or any MultilateralFinancial Institution and Organisation notifiedunder the United Nations (Privileges andImmunities) Act, 1947, Consulate or Embassy offoreign countries; and

(b) any other person or class of persons, asmay be notified by the Commissioner,




shall be granted a Unique Identity Number in suchmanner and for such purposes, including refund oftaxes on the notified supplies of goods or services orboth received by them, as may be prescribed.

(10) The registration or the Unique IdentityNumber shall be granted or rejected after due verificationin such manner and within such period as may beprescribed.

(11) A certificate of registration shall be issuedin such form and with effect from such date as maybe prescribed.

(12) A registration or a Unique Identity Numbershall be deemed to have been granted after the expiryof the period prescribed under sub-section (10), if nodeficiency has been communicated to the applicantwithin that period.

26. (1) The grant of registration or the UniqueIdentity Number under the Central Goods and ServicesTax Act shall be deemed to be a grant of registrationor the Unique Identity Number under this Act subjectto the condition that the application for registration orthe Unique Identity Number has not been rejectedunder this Act within the time specified in sub-section (10)of section 25.

(2) Notwithstanding anything contained insub-section (10) of section 25, any rejection ofapplication for registration or the Unique IdentityNumber under the Central Goods and Services Tax Actshall be deemed to be a rejection of application forregistration under this Act.

27. (1) The certificate of registration issued toa casual taxable person or a non-resident taxableperson shall be valid for the period specified in theapplication for registration or ninety days from theeffective date of registration, whichever is earlier andsuch person shall make taxable supplies only after theissuance of the certificate of registration:

Deemedregistration.

Specialprovisionsrelating tocasual taxableperson andnon-residenttaxableperson.


Provided that the proper officer may, onsufficient cause being shown by the said taxableperson, extend the said period of ninety days by afurther period not exceeding ninety days.

(2) A casual taxable person or a non-residenttaxable person shall, at the time of submission ofapplication for registration under sub-section (1) ofsection 25, make an advance deposit of tax in anamount equivalent to the estimated tax liability of suchperson for the period for which the registration issought:

Provided that where any extension of time issought under sub-section (1), such taxable person shalldeposit an additional amount of tax equivalent to theestimated tax liability of such person for the periodfor which the extension is sought.

(3) The amount deposited under sub-section (2)shall be credited to the electronic cash ledger of suchperson and shall be utilised in the manner providedunder section 49.

28. (1) Every registered person and a person towhom a Unique Identity Number has been assignedshall inform the proper officer of any changes in theinformation furnished at the time of registration orsubsequent thereto, in such form and manner andwithin such period as may be prescribed.

(2 ) The proper officer may, on the basis ofinformation furnished under sub-section (1) or asascertained by him, approve or reject amendments inthe registration particulars in such manner and withinsuch period as may be prescribed:

Provided that approval of the proper officer shallnot be required in respect of amendment of suchparticulars as may be prescribed:

Provided further that the proper officer shall notreject the application for amendment in theregistration particulars without giving the person anopportunity of being heard.

Amendmentofregistration.


(3) Any rejection or approval of amendmentsunder the Central Goods and Services Tax Act shall bedeemed to be a rejection or approval under this Act.

29. (1) The proper officer may, either on his ownmotion or on an application filed by the registeredperson or by his legal heirs, in case of death of suchperson, cancel the registration, in such manner andwithin such period as may be prescribed, having regardto the circumstances where,—

(a) the business has been discontinued,transferred fully for any reason including deathof the proprietor, amalgamated with other legalentity, demerged or otherwise disposed of; or

(b) there is any change in the constitution ofthe business; or

(c) the taxable person, other than the personregistered under sub-section (3) of section 25,is no longer liable to be registered under section22 or section 24.

(2) The proper officer may cancel theregistration of a person from such date, including anyretrospective date, as he may deem fit, where,—

(a) a registered person has contravened suchprovisions of the Act or the rules madethereunder as may be prescribed; or

(b) a person paying tax under section 10 hasnot furnished returns for three consecutive taxperiods; or

(c) any registered person, other than a personspecified in clause (b), has not furnished returnsfor a continuous period of six months; or

(d) any person who has taken voluntaryregistration under sub-section (3) of section 25 hasnot commenced business within six months from thedate of registration; or

Cancellationofregistration.


(e) registration has been obtained by means offraud, wilful misstatement or suppression offacts:

Provided that the proper officer shall notcancel the registration without giving the personan opportunity of being heard.

(3) The cancellation of registration under thissection shall not affect the liability of the person topay tax and other dues under this Act or to dischargeany obligation under this Act or the rules madethereunder for any period prior to the date ofcancellation whether or not such tax and other dues aredetermined before or after the date of cancellation.

(4) The cancellation of registration under theCentral Goods and Services Tax Act shall be deemedto be a cancellation of registration under this Act.

(5) Every registered person whose registrationis cancelled shall pay an amount, by way of debit inthe electronic credit ledger or electronic cash ledger,equivalent to the credit of input tax in respect of inputsheld in stock and inputs contained in semi-finished orfinished goods held in stock or capital goods or plantand machinery on the day immediately preceding thedate of such cancellation or the output tax payable onsuch goods, whichever is higher, calculated in suchmanner as may be prescribed:

Provided that in case of capital goods or plant andmachinery, the taxable person shall pay an amountequal to the input tax credit taken on the said capitalgoods or plant and machinery, reduced by suchpercentage points as may be prescribed or the tax onthe transaction value of such capital goods or plant andmachinery under section 15, whichever is higher.

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


30. (1) Subject to such conditions as may beprescribed, any registered person, whose registrationis cancelled by the proper officer on his own motion,may apply to such officer for revocation ofcancellation of the registration in the prescribedmanner within thirty days from the date of service ofthe cancellation order.

(2) The proper officer may, in such manner andwithin such period as may be prescribed, by order,either revoke cancellation of the registration or rejectthe application:

Provided that the application for revocation ofcancellation of registration shall not be rejected unlessthe applicant has been given an opportunity of being heard.

(3) The revocation of cancellation of registrationunder the Central Goods and Services Tax Act shall bedeemed to be a revocation of cancellation ofregistration under this Act.

CHAPTER VII

TAX INVOICE, CREDIT AND DEBIT NOTES

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

(a) removal of goods for supply to therecipient, where the supply involves movement ofgoods; or

(b) delivery of goods or making availablethereof to the recipient, in any other case,

issue a tax invoice showing the description, quantityand value of goods, the tax charged thereon and suchother particulars as may be prescribed:

Provided that the Government may, on therecommendations of the Council, by notification,specify the categories of goods or supplies in respectof which a tax invoice shall be issued, within such timeand in such manner as may be prescribed.

Revocationofcancellationofregistration.

Tax invoice.


(2) A registered person supplying taxable servicesshall, before or after the provision of service butwithin a prescribed period, issue a tax invoice, showingthe description, value, tax charged thereon and suchother particulars as may be prescribed:

Provided that the Government may, on therecommendations of the Council, by notification andsubject to such conditions as may be mentionedtherein, specify the categories of services in respectof which—

(a) any other document issued in relation tothe supply shall be deemed to be a tax invoice;o r

(b) tax invoice may not be issued.

(3) Notwithstanding anything contained in sub-sections (1) and (2)—

(a) a registered person may, within one monthfrom the date of issuance of certificate ofregistration and in such manner as may beprescribed, issue a revised invoice against theinvoice already issued during the periodbeginning with the effective date of registrationtill the date of issuance of certificate ofregistration to him;

(b) a registered person may not issue a taxinvoice if the value of the goods or servicesor bo th suppl ied is less than two hundredrupees sub jec t to such condit ions and insuch manner as may be prescr ibed;

(c) a registered person supplying exemptedgoods or services or both or paying tax under theprovisions of section 10 shall issue, instead ofa tax invoice, a bill of supply containing suchparticulars and in such manner as may beprescribed:


Provided that the registered person may notissue a bill of supply if the value of the goodsor services or both supplied is less than twohundred rupees subject to such conditions and insuch manner as may be prescribed;

(d) a registered person shall, on receipt ofadvance payment with respect to any supply ofgoods or services or both, issue a receiptvoucher or any other document, containing suchparticulars as may be prescribed, evidencingreceipt of such payment;

(e) where, on receipt of advance payment withrespect to any supply of goods or services orboth the registered person issues a receiptvoucher, but subsequently no supply is made andno tax invoice is issued in pursuance thereof, thesaid registered person may issue to the personwho had made the payment, a refund voucheragainst such payment;

(f) a registered person who is liable to pay taxunder sub-section (3) or sub-section (4) ofsection 9 shall issue an invoice in respect ofgoods or services or both received by him fromthe supplier who is not registered on the date ofreceipt of goods or services or both;

(g) a registered person who is liable to paytax under sub-section (3) or sub-section (4) ofsection 9 shall issue a payment voucher at thetime of making payment to the supplier.

(4) In case of continuous supply of goods, wheresuccessive statements of accounts or successivepayments are involved, the invoice shall be issuedbefore 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 isascertainable from the contract, the invoice shallbe issued on or before the due date of payment;


(b) where the due date of payment is notascertainable from the contract, the invoice shallbe issued before or at the time when the supplierof service receives the payment;

(c) where the payment is linked to thecompletion of an event, the invoice shall beissued on or before the date of completion ofthat event.

(6) In a case where the supply of services ceasesunder a contract before the completion of the supply,the invoice shall be issued at the time when the supplyceases and such invoice shall be issued to the extentof the supply made before such cessation.

(7) Notwithstanding anything contained in sub-section (1), where the goods being sent or taken onapproval for sale or return are removed before thesupply takes place, the invoice shall be issuedbefore or at the time of supply or six months fromthe date of removal, whichever is earlier.

Explanation .—For the purposes of thissection, the expression "tax invoice" shall includeany revised invoice issued by the supplier in respectof a supply made earlier.

32. (1) A person who is not a registered personshall not collect in respect of any supply of goodsor services or both any amount by way of tax underthis Act.

(2) No registered person shall collect taxexcept in accordance with the provisions of this Actor the rules made thereunder.

33. Notwithstanding anything contained in thisAct or any other law for the time being in force,where any supply is made for a consideration, everyperson who is liable to pay tax for such supply shallprominently indicate in all documents relating toassessment, tax invoice and other like documents,the amount of tax which shall form part of the priceat which such supply is made.

Prohibitionofunauthorisedcollection oftax.

Amount oftax to beindicated intax invoiceand otherdocuments.


34. (1) Where a tax invoice has been issued forsupply of any goods or services or both and the taxablevalue or tax charged in that tax invoice is found toexceed the taxable value or tax payable in respect ofsuch supply, or where the goods supplied are returnedby the recipient, or where goods or services or bothsupplied are found to be deficient, the registeredperson, who has supplied such goods or services orboth, may issue to the recipient a credit note containingsuch particulars as may be prescribed.

(2) Any registered person who issues a creditnote in relation to a supply of goods or services orboth shall declare the details of such credit note in thereturn for the month during which such credit note hasbeen issued but not later than September following theend of the financial year in which such supply wasmade, or the date of furnishing of the relevant annualreturn, whichever is earlier, and the tax liability shallbe adjusted in such manner as may be prescribed:

Provided that no reduction in output tax liabilityof the supplier shall be permitted, if the incidence oftax and interest on such supply has been passed on toany other person.

(3) Where a tax invoice has been issued forsupply of any goods or services or both and the taxablevalue or tax charged in that tax invoice is found to beless than the taxable value or tax payable in respect ofsuch supply, the registered person, who has suppliedsuch goods or services or both, shall issue to therecipient a debit note containing such particulars asmay be prescribed.

(4) Any registered person who issues a debit notein relation to a supply of goods or services or bothshall declare the details of such debit note in the returnfor the month during which such debit note has beenissued and the tax liability shall be adjusted in suchmanner as may be prescribed.

Credit anddebit notes.


Explanation .—For the purposes of this Act,the expression "debit note" shall include a supplementaryinvoice.

CHAPTER VIII

ACCOUNTS AND RECORDS

35. (1) Every registered person shall keep andmaintain, at his principal place of business, asmentioned in the certificate of registration, a true andcorrect account of-

(a) production or manufacture of goods;

(b) inward and outward supply of goods orservices 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 ofbusiness is specified in the certificate of registration,the accounts relating to each place of business shallbe kept at such places of business:

Provided further that the registered person maykeep and maintain such accounts and other particularsin electronic form in such manner as may beprescribed.

(2) Every owner or operator of warehouse orgodown or any other place used for storage of goodsand every transporter, irrespective of whether he is aregistered person or not, shall maintain records of theconsigner, consignee and other relevant details of thegoods in such manner as may be prescribed.

(3) The Commissioner may notify a class oftaxable persons to maintain additional accounts ordocuments for such purpose as may be specifiedtherein.

Accountsand otherrecords.


(4) Where the Commissioner considers that anyclass of taxable persons is not in a position to keepand maintain accounts in accordance with theprovisions of this section, he may, for reasons to berecorded in writing, permit such class of taxablepersons to maintain accounts in such manner as maybe prescribed.

(5) Every registered person whose turnoverduring a financial year exceeds the prescribed limitshall get his accounts audited by a chartered accountantor a cost accountant and shall submit a copy of theaudited annual accounts, the reconciliation statementunder sub-section (2) of section 44 and such otherdocuments in such form and manner as may beprescribed.

(6) Subject to the provisions of clause (h) of sub-section (5) of section 17, where the registered personfails to account for the goods or services or both inaccordance with the provisions of sub-section (1), theproper officer shall determine the amount of taxpayable on the goods or services or both that are notaccounted for, as if such goods or services or both hadbeen supplied by such person and the provisions ofsection 73 or section74, as the case may be, shall,mutatis mutandis, apply for determination of such tax.

36. Every registered person required to keep andmaintain books of account or other records inaccordance with the provisions of sub-section (1) ofsection 35 shall retain them until the expiry of seventytwo months from the due date of furnishing of annualreturn for the year pertaining to such accounts andrecords:

Provided that a registered person, who is a partyto an appeal or revision or any other proceedingsbefore any Appellate Authority or Revisional Authorityor Appellate Tribunal or court, whether filed by himor by the Commissioner, or is under investigation for

Period ofretention ofaccounts.


an offence under Chapter XIX, shall retain the booksof account and other records pertaining to the subjectmatter of such appeal or revision or proceedings orinvestigation for a period of one year after finaldisposal of such appeal or revision or proceedings orinvestigation, or for the period specified above,whichever is later.

CHAPTER IX

RETURNS

37. (1) Every registered person, other than anInput Service Distributor, a non-resident taxable personand a person paying tax under the provisions of section10 or section 51 or section 52, shall furnish,electronically, in such form and manner as may beprescribed, the details of outward supplies of goodsor services or both effected during a tax period on orbefore the tenth day of the month succeeding the saidtax period and such details shall be communicated tothe recipient of the said supplies within such time andin such manner as may be prescribed:

Provided that the registered person shall not beallowed to furnish the details of outward suppliesduring the period from the eleventh day to thefifteenth day of the month succeeding the tax period:

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

Provided also that any extension of time limitnotified by the Commissioner of central tax shall bedeemed to be notified by the Commissioner.

(2) Every registered person who has beencommunicated the details under sub-section (3) ofsection 38 or the details pertaining to inward suppliesof Input Service Distributor under sub-section (4) of

Furnishingdetails ofoutwardsupplies.


section 38, shall either accept or reject the details socommunicated, on or before the seventeenth day, butnot before the fifteenth day, of the month succeedingthe tax period and the details furnished by him undersub-section (1) shall stand amended accordingly.

(3) Any registered person, who has furnished thedetails under sub-section (1) for any tax period andwhich have remained unmatched under section 42 orsection 43, shall, upon discovery of any error oromission therein, rectify such error or omission insuch manner as may be prescribed, and shall pay thetax and interest, if any, in case there is a short paymentof tax on account of such error or omission, in thereturn to be furnished for such tax period:

Provided that no rectification of error or omissionin respect of the details furnished under sub-section (1)shall be allowed after furnishing of the return undersection 39 for the month of September following the endof the financial year to which such details pertain, orfurnishing of the relevant annual return, whichever isearlier.

Explanation.—For the purposes of this Chapter,the expression "details of outward supplies" shallinclude details of invoices, debit notes, credit notesand revised invoices issued in relation to outwardsupplies made during any tax period.

38. (1) Every registered person, other than anInput Service Distributor or a non-resident taxableperson or a person paying tax under the provisions ofsection 10 or section 51 or section 52, shall verify,validate, modify or delete, if required, the detailsrelating to outward supplies and credit or debit notescommunicated under sub-section (1) of section 37 toprepare the details of his inward supplies and creditor debit notes and may include therein, the details ofinward supplies and credit or debit notes received byhim in respect of such supplies that have not beendeclared by the supplier under sub-section (1) ofsection 37.

Furnishingdetails ofinwardsupplies.


(2) Every registered person, other than an InputService Distributor or a non-resident taxable personor a person paying tax under the provisions of section10 or section 51 or section 52, shall furnish,electronically, the details of inward supplies of taxablegoods or services or both, including inward suppliesof goods or services or both on which the tax ispayable on reverse charge basis under this Act andinward supplies of goods or services or both taxableunder the Integrated Goods and Services Tax Act or onwhich integrated goods and services tax is payableunder section 3 of the Customs Tariff Act, 1975, andcredit or debit notes received in respect of suchsupplies during a tax period after the tenth day but onor before the fifteenth day of the month succeedingthe tax period in such form and manner as may beprescribed:

Provided that the Commissioner may, for reasonsto be recorded in writing, by notification, extend thetime limit for furnishing such details for such classof taxable persons as may be specified therein:

Provided further that any extension of time limitnotified by the Commissioner of central tax shall bedeemed to be notified by the Commissioner.

(3) The details of supplies modified, deleted orincluded by the recipient and furnished under sub-section (2) shall be communicated to the supplierconcerned in such manner and within such time as maybe prescribed.

(4) The details of supplies modified, deleted orincluded by the recipient in the return furnished undersub-section (2) or sub-section (4) of section 39 shallbe communicated to the supplier concerned in suchmanner and within such time as may be prescribed.

(5) Any registered person, who has furnished thedetails under sub-section (2) for any tax period andwhich have remained unmatched under section 42 orsection 43, shall, upon discovery of any error or



omission therein, rectify such error or omission in thetax period during which such error or omission isnoticed in such manner as may be prescribed, and shallpay the tax and interest, if any, in case there is a shortpayment 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 oromission in respect of the details furnished under sub-section (2) shall be allowed after furnishing of thereturn under section 39 for the month of Septemberfollowing the end of the financial year to which suchdetails pertain, or furnishing of the relevant annualreturn, whichever is earlier.

39. (1) Every registered person, other than anInput Service Distributor or a non-resident taxableperson or a person paying tax under the provisions ofsection 10 or section 51 or section 52 shall, for everycalendar month or part thereof, furnish, in such formand manner as may be prescribed, a return,electronically, of inward and outward supplies ofgoods or services or both, input tax credit availed, taxpayable, tax paid and such other particulars as may beprescribed on or before the twentieth day of the monthsucceeding such calendar month or part thereof.

(2) A registered person paying tax under theprovisions of section 10 shall, for each quarter or partthereof, furnish, in such form and manner as may beprescribed, a return, electronically, of turnover in theState, inward supplies of goods or services or both, taxpayable and tax paid within eighteen days after the endof such quarter.

(3) Every registe red person required todeduct tax at source under the provisions ofsection 51 shall furnish, in such form and manneras may be prescribed, a return, electronically, forthe month in which such deductions have been madewithin ten days after the end of such month.

Furnishingof returns.


(4) Every taxable person registered as an InputService Distributor shall, for every calendar month orpart thereof, furnish, in such form and manner as maybe prescribed, a return, electronically, within thirteendays after the end of such month.

(5) Every registered non-resident taxable personshall, for every calendar month or part thereof, furnish,in such form and manner as may be prescribed, areturn, electronically, within twenty days after the endof a calendar month or within seven days after the lastday of the period of registration specified under sub-section (1) of section 27, whichever is earlier.

(6) The Commissioner may, for reasons to berecorded in writing, by notification, extend the timelimit for furnishing the returns under this section forsuch class of registered persons as may be specifiedtherein:

Provided that any extension of time limit notifiedby the Commissioner of central tax shall be deemedto be notified by the Commissioner.

(7) Every registered person, who is required tofurnish a return under sub-section (1) or sub-section(2) or sub-section (3) or sub-section (5), shall pay tothe Government the tax due as per such return not laterthan the last date on which he is required to furnishsuch return.

(8) Every registered person who is required tofurnish a return under sub-section (1) or sub-section(2) shall furnish a return for every tax period whetheror not any supplies of goods or services or both havebeen made during such tax period.

(9) Subject to the provisions of sections 37 and38, if any registered person after furnishing a returnunder 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 taxauthorities, he shall rectify such omission or incorrectparticulars in the return to be furnished for the monthor quarter during which such omission or incorrectparticulars are noticed, subject to payment of interestunder this Act:

Provided that no such rectification of anyomission or incorrect particulars shall be allowed afterthe due date for furnishing of return for the month ofSeptember or second quarter following the end of thefinancial year, or the actual date of furnishing ofrelevant annual return, whichever is earlier.

(10) A registered person shall not be allowed tofurnish a return for a tax period if the return for anyof the previous tax periods has not been furnished byhim.

40. Every registered person who has madeoutward supplies in the period between the date onwhich he became liable to registration till the date onwhich registration has been granted shall declare thesame in the first return furnished by him after grantof registration.

41. (1) Every registered person shall, subject tosuch conditions and restrictions as may be prescribed,be entitled to take the credit of eligible input tax, asself-assessed, in his return and such amount shall becredited on a provisional basis to his electronic creditledger.

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

42. (1) The details of every inward supplyfurnished by a registered person (hereafter in thissection referred to as the "recipient") for a tax periodshall, in such manner and within such time as may beprescribed, be matched—

First return.

Claim ofinput taxcredit andprovisionalacceptancethereof.

Matching,reversal andreclaim ofinput taxcredit.


(a) with the corresponding details of outwardsupply furnished by the corresponding registeredperson (hereafter in this section referred to asthe "supplier") in his valid return for the same taxperiod or any preceding tax period;

(b) with the integrated goods and services taxpaid under sect ion 3 of the Customs TariffAct, 1975 in respect of goods imported by him; and

(c) for duplication of claims of input taxcredit.

(2) The claim of input tax credit in respect ofinvoices or debit notes relating to inward supply thatmatch with the details of corresponding outwardsupply or with the integrated goods and services taxpaid under section 3 of the Customs Tariff Act, 1975in respect of goods imported by him shall be finallyaccepted and such acceptance shall be communicated,in such manner as may be prescribed, to the recipient.

(3) Where the input tax credit claimed by arecipient in respect of an inward supply is in excessof the tax declared by the supplier for the same supplyor the outward supply is not declared by the supplierin his valid returns, the discrepancy shall be communicatedto both such persons in such manner as may beprescribed.

(4) The duplication of claims of input tax creditshall be communicated to the recipient in such manneras may be prescribed.

(5) The amount in respect of which anydiscrepancy is communicated under sub-section (3)and which is not rectified by the supplier in his validreturn for the month in which discrepancy iscommunicated 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 inwhich the discrepancy is communicated.

(6) The amount claimed as input tax credit thatis found to be in excess on account of duplication ofclaims shall be added to the output tax liability of therecipient in his return for the month in which theduplication is communicated.

(7) The recipient shall be eligible to reduce, fromhis output tax liability, the amount added under sub-section (5), if the supplier declares the details of theinvoice or debit note in his valid return within the timespecified in sub-section (9) of section 39.

(8) A recipient in whose output tax liability anyamount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the ratespecified under sub-section (1) of section 50 on theamount so added from the date of availing of credit tillthe corresponding additions are made under the saidsub-sections.

(9) Where any reduction in output tax liability isaccepted under sub-section (7), the interest paid undersub-section (8) shall be refunded to the recipient bycrediting the amount in the corresponding head of hiselectronic cash ledger in such manner as may beprescribed:

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

(10) The amount reduced from the output taxliability in contravention of the provisions of sub-section (7) shall be added to the output tax liability ofthe recipient in his return for the month in which suchcontravention takes place and such recipient shall beliable to pay interest on the amount so added at the ratespecified in sub-section (3) of section 50.


43. (1) The details of every credit note relatingto 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 suchtime as may be prescribed, be matched—

(a) with the corresponding reduction in theclaim for input tax credit by the correspondingregistered person (hereafter in this sectionreferred to as the "recipient") in his valid returnfor the same tax period or any subsequent taxperiod; and

(b) for duplication of claims for reduction inoutput tax liability.

(2) The claim for reduction in output tax liabilityby the supplier that matches with the correspondingreduction in the claim for input tax credit by therecipient shall be finally accepted and communicated,in such manner as may be prescribed, to the supplier.

(3) Where the reduction of output tax liability inrespect of outward supplies exceeds the correspondingreduction in the claim for input tax credit or thecorresponding credit note is not declared by therecipient in his valid returns, the discrepancy shall becommunicated to both such persons in such manner asmay be prescribed.

(4) The duplication of claims for reduction inoutput tax liability shall be communicated to thesupplier in such manner as may be prescribed.

(5) The amount in respect of which anydiscrepancy is communicated under sub-section (3)and which is not rectified by the recipient in his validreturn for the month in which discrepancy iscommunicated shall be added to the output tax liabilityof the supplier, in such manner as may be prescribed,in his return for the month succeeding the month inwhich the discrepancy is communicated.

Matching,reversal andreclaim ofreduction inoutput taxliability.


(6) The amount in respect of any reduction inoutput tax liability that is found to be on account ofduplication of claims shall be added to the output taxliability of the supplier in his return for the month inwhich such duplication is communicated.

(7) The supplier shall be eligible to reduce, fromhis output tax liability, the amount added under sub-section (5) if the recipient declares the details of thecredit note in his valid return within the time specifiedin sub-section (9) of section 39.

(8) A supplier in whose output tax liability anyamount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest at the ratespecified under sub-section (1) of section 50 inrespect of the amount so added from the date of suchclaim for reduction in the output tax liability till thecorresponding additions are made under the said sub-sections.

(9) Where any reduction in output tax liability isaccepted under sub-section (7), the interest paid undersub-section (8) shall be refunded to the supplier bycrediting the amount in the corresponding head of hiselectronic cash ledger in such manner as may beprescribed:

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

(10) The amount reduced from output tax liabilityin contravention of the provisions of sub-section (7)shall be added to the output tax liability of the supplierin his return for the month in which such contraventiontakes place and such supplier shall be liable to payinterest on the amount so added at the rate specifiedin sub-section (3) of section 50.

44. (1) Every registered person, other than an InputService Distributor, a person paying tax under section51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return

Annualreturn.


for every financial year electronically in such form andmanner as may be prescribed on or before the thirty-first day of December following the end of suchfinancial year.

(2) Every registered person who is required toget his accounts audited in accordance with theprovisions of sub-section (5) of section 35 shallfurnish, electronically, the annual return under sub-section (1) along with a copy of the audited annualaccounts and a reconciliation statement, reconcilingthe value of supplies declared in the return furnishedfor the financial year with the audited annual financialstatement, and such other particulars as may beprescribed.

45. Every registered person who is required tofurnish a return under sub-section (1) of section 39and whose registration has been cancelled shall furnisha final return within three months of the date ofcancellation or date of order of cancellation,whichever is later, in such form and manner as may beprescribed.

46. Where a registered person fails to furnish areturn under section 39 or section 44 or section 45, anotice shall be issued requiring him to furnish suchreturn within fifteen days in such form and manner asmay be prescribed.

47. (1) Any registered person who fails tofurnish the details of outward or inward suppliesrequired under section 37 or section 38 or returnsrequired under section 39 or section 45 by the duedate shall pay a late fee of one hundred rupees forevery day during which such failure continues subjectto a maximum amount of five thousand rupees.

(2) Any registered person who fails to furnish thereturn required under section 44 by the due date shallbe liable to pay a late fee of one hundred rupees for

Final return.

Notice toreturndefaulters.

Levy of latefee.


every day during which such failure continues subjectto a maximum of an amount calculated at a quarter percent. of his turnover in the State.

48. (1) The manner of approval of goods andservices tax practitioners, their eligibility conditions,duties and obligations, manner of removal and otherconditions relevant for their functioning shall be suchas may be prescribed.

(2) A registered person may authorise anapproved goods and services tax practitioner to furnishthe details of outward supplies under section 37, thedetails of inward supplies under section 38 and thereturn under section 39 or section 44 or section 45in such manner as may be prescribed.

(3) Notwithstanding anything contained in sub-section (2), the responsibility for correctness of anyparticulars furnished in the return or other details filedby the goods and services tax practitioners shallcontinue to rest with the registered person on whosebehalf such return and details are furnished.

CHAPTER X

P AY M E N T O F T AX

49. (1) Every deposit made towards tax,interest, penalty, fee or any other amount by a personby internet banking or by using credit or debit cardsor National Electronic Fund Transfer or Real TimeGross Settlement or by such other mode and subjectto such conditions and restrictions as may beprescribed, shall be credited to the electronic cashledger of such person to be maintained in such manneras may be prescribed.

(2) The input tax credit as self-assessed in thereturn of a registered person shall be credited to hiselectronic credit ledger, in accordance with section 41,to be maintained in such manner as may be prescribed.

Goods andservices taxpractitioners.

Payment oftax, interest,penalty andotheramounts.


(3) The amount available in the electronic cashledger may be used for making any payment towardstax, interest, penalty, fees or any other amount payableunder the provisions of this Act or the rules madethereunder in such manner and subject to suchconditions and within such time as may be prescribed.

(4) The amount available in the electronic creditledger may be used for making any payment towardsoutput tax under this Act or under the Integrated Goodsand Services Tax Act in such manner and subject tosuch conditions and within such time as may beprescribed.

(5) The amount of input tax credit available in theelectronic credit ledger of the registered person onaccount of —

(a) integrated tax shall first be utilised towardspayment of integrated tax and the amountremaining, if any, may be utilised towards thepayment of central tax and State tax, or as thecase may be, Union territory tax, in that order;

(b) the central tax shall first be utilised towardspayment of central tax and the amount remaining,if any, may be utilised towards the payment ofintegrated tax;

(c) the State tax shall first be utilised towardspayment of State tax and the amount remaining,if any, may be utilised towards the payment ofintegrated tax;

(d) the Union territory tax shall first beutilised towards payment of Union territory taxand the amount remaining, if any, may be utilisedtowards the payment of integrated tax;

(e) the central tax shall not be utilised towardspayment of State tax or Union territory tax; and

(f) the State tax or Union territory tax shallnot be utilised towards payment of central tax.


(6) The balance in the electronic cash ledger orelectronic credit ledger after payment of tax, interest,penalty, fee or any other amount payable under this Actor the rules made thereunder may be refunded inaccordance with the provisions of section 54.

(7) All liabilities of a taxable person under thisAct shall be recorded and maintained in an electronicliability register in such manner as may be prescribed.

(8) Every taxable person shall discharge his taxand other dues under this Act or the rules madethereunder in the following order, namely:—

(a) self-assessed tax, and other dues related toreturns of previous tax periods;

(b) self-assessed tax, and other dues related tothe return of the current tax period;

(c) any other amount payable under this Actor the rules made thereunder including thedemand determined under section 73 or section 74.

(9) Every person who has paid the tax on goodsor services or both under this Act shall, unless thecontrary is proved by him, be deemed to have passedon the full incidence of such tax to the recipient ofsuch goods or services or both.

Explanation.—For the purposes of this section,

(a) the date of credit to the account of theGovernment in the authorised bank shall bedeemed to be the date of deposit in theelectronic cash ledger;

(b) the expression,-

(i) "tax dues" means the tax payable underthis Act and does not include interest, fee andpenalty; and

(ii) "other dues" means interest, penalty,fee or any other amount payable under this Actor the rules made thereunder.


50. (1) Every person who is liable to pay tax inaccordance with the provisions of this Act or the rulesmade thereunder, but fails to pay the tax or any partthereof to the Government within the periodprescribed, shall for the period for which the tax orany 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 therecommendations of the Council.

(2) The interest under sub-section (1) shall becalculated, in such manner as may be prescribed, fromthe day succeeding the day on which such tax was dueto be paid.

(3) A taxable person who makes an undue orexcess claim of input tax credit under sub-section (10)of section 42 or undue or excess reduction in outputtax liability under sub-section (10) of section 43, shallpay interest on such undue or excess claim or on suchundue or excess reduction, as the case may be, at suchrate not exceeding twenty-four per cent., as may benotified by the Government on the recommendationsof the Council.

51. (1) Notwithstanding anything to the contrarycontained in this Act, the Government may mandate,-

(a) a department or establishment of theCentral Government or State Government; or

(b) local authority; or

(c) Governmental agencies; or

(d) such persons or category of persons as maybe notified by the Government on therecommendations of the Council,

(hereafter in this section referred to as "the deductor"),to deduct tax at the rate of one per cent. from thepayment made or credited to the supplier (hereafter inthis section referred to as "the deductee") of taxablegoods or services or both, where the total value ofsuch supply, under a contract, exceeds two lakh andfifty thousand rupees:

Interest ondelayedpayment oftax.

Taxdeduction atsource.


Provided that no deduction shall be made if thelocation of the supplier and the place of supply is in aState or Union territory which is different from theState or, as the case may be, Union territory ofregistration of the recipient.

Explanation.—For the purpose of deduction oftax specified above, the value of supply shall be takenas the amount excluding the central tax, State tax,integrated tax and cess indicated in the invoice.

(2) The amount deducted as tax under this sectionshall be paid to the Government by the deductor withinten days after the end of the month in which suchdeduction is made, in such manner as may beprescribed.

(3) The deductor shall furnish to the deductee acertificate mentioning therein the contract value, rateof deduction, amount deducted, amount paid to theGovernment and such other particulars in such manneras may be prescribed.

(4) If any deductor fails to furnish to thedeductee the certificate, after deducting the tax atsource, within five days of crediting the amount sodeducted to the Government, the deductor shall pay, byway of a late fee, a sum of one hundred rupees per dayfrom the day after the expiry of such five day perioduntil the failure is rectified, subject to a maximumamount of five thousand rupees.

(5) The deductee shall claim credit, in hiselectronic cash ledger, of the tax deducted andreflected in the return of the deductor furnished undersub-section (3) of section 39, in such manner as maybe prescribed.

(6) If any deductor fails to pay to the Governmentthe amount deducted as tax under sub-section (1), heshall pay interest in accordance with the provisions ofsub-section (1) of section 50, in addition to theamount of tax deducted.


(7) The determination of the amount in defaultunder this section shall be made in the mannerspecified in section 73 or section 74.

(8) The refund to the deductor or the deducteearising on account of excess or erroneous deduction shallbe dealt with in accordance with the provisions of section 54:

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

52. (1) Notwithstanding anything to the contrarycontained in this Act, every electronic commerceoperator (hereafter in this section referred to as the"operator"), not being an agent, shall collect an amountcalculated at such rate not exceeding one per cent., asmay be notified by the Government on therecommendations of the Council, of the net value oftaxable supplies made through it by other supplierswhere the consideration with respect to such suppliesis to be collected by the operator.

Explanation.—For the purposes of this sub-section,the expression "net value of taxable supplies" shallmean the aggregate value of taxable supplies of goodsor services or both, other than services notified undersub-section (5) of section 9, made during any monthby all registered persons through the operator reducedby the aggregate value of taxable supplies returned tothe suppliers during the said month.

(2) The power to collect the amount specified insub-section (1) shall be without prejudice to any othermode of recovery from the operator.

(3) The amount collected under sub-section (1)shall be paid to the Government by the operator withinten days after the end of the month in which suchcollection is made, in such manner as may beprescribed.

Collection oftax atsource.


(4) Every operator who collects the amountspecified in sub-section (1) shall furnish a statement,electronically, containing the details of outwardsupplies of goods or services or both effected throughit, including the supplies of goods or services or bothreturned through it, and the amount collected undersub-section (1) during a month, in such form andmanner as may be prescribed, within ten days after theend of such month.

(5) Every operator who collects the amountspecified in sub-section (1) shall furnish an annualstatement, electronically, containing the details ofoutward supplies of goods or services or both effectedthrough it, including the supplies of goods or servicesor both returned through it, and the amount collectedunder the said sub-section during the financial year, insuch form and manner as may be prescribed, before thethirty first day of December following the end of suchfinancial year.

(6) If any operator after furnishing a statementunder sub-section (4) discovers any omission orincorrect particulars therein, other than as a result ofscrutiny, audit, inspection or enforcement activity bythe tax authorities, he shall rectify such omission orincorrect particulars in the statement to be furnishedfor the month during which such omission or incorrectparticulars are noticed, subject to payment of interest,as specified in sub-section (1) of section 50:

Provided that no such rectification of anyomission or incorrect particulars shall be allowed afterthe due date for furnishing of statement for the monthof September following the end of the financial yearor the actual date of furnishing of the relevant annualstatement, whichever is earlier.

(7) The supplier who has supplied the goods orservices or both through the operator shall claimcredit, in his electronic cash ledger, of the amount


collected and reflected in the statement of theoperator furnished under sub-section (4), in suchmanner as may be prescribed.

(8) The details of supplies furnished by everyoperator under sub-section (4) shall be matched withthe corresponding details of outward suppliesfurnished by the concerned supplier registered underthis Act in such manner and within such time as maybe prescribed.

(9) Where the details of outward suppliesfurnished by the operator under sub-section (4) do notmatch with the corresponding details furnished by thesupplier under section 37, the discrepancy shall becommunicated to both persons in such manner andwithin such time as may be prescribed.

(10) The amount in respect of which anydiscrepancy is communicated under sub-section (9)and which is not rectified by the supplier in his validreturn or the operator in his statement for the monthin which discrepancy is communicated, shall be addedto the output tax liability of the said supplier, wherethe value of outward supplies furnished by the operatoris more than the value of outward supplies furnishedby the supplier, in his return for the month succeedingthe month in which the discrepancy is communicatedin such manner as may be prescribed.

(11) The concerned supplier, in whose output taxliability any amount has been added under sub-section(10), shall pay the tax payable in respect of suchsupply along with interest, at the rate specified undersub-section (1) of section 50 on the amount so addedfrom the date such tax was due till the date of itspayment.

(12) Any authority not below the rank of DeputyCommissioner may serve a notice, either before orduring the course of any proceedings under this Act,requiring the operator to furnish such details relatingto—


(a) supplies of goods or services or botheffected through such operator during any period;o r

(b) stock of goods held by the suppliers makingsupplies through such operator in the godownsor warehouses, by whatever name called, managedby such operator and declared as additionalplaces of business by such suppliers,

as may be specified in the notice.

(13) Every operator on whom a notice has beenserved under sub-section (12) shall furnish therequired information within fifteen working days of thedate of service of such notice.

(14) Any person who fails to furnish theinformation required by the notice served under sub-section (12) shall, without prejudice to any action thatmay be taken under section 122, be liable to a penaltywhich may extend to twenty-five thousand rupees.

Explanation.—For the purposes of this section,the expression "concerned supplier" shall mean thesupplier of goods or services or both making suppliesthrough the operator.

53. On utilisation of input tax credit availed underthis Act for payment of tax dues under the Integrated

Goods and Services Tax Act in accordance with the

provisions of sub-section (5) of section 49, as reflected

in the valid return furnished under sub-section (1) of

section 39, the amount collected as State tax shall stand

reduced by an amount equal to such credit so utilised

and the State Government shall transfer an amount

equal to the amount so reduced from the State tax

account to the integrated tax account in such manner

and within such time as may be prescribed.

Transfer ofinput taxcredit.


CHAPTER XI

REFUNDS

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

Provided that a registered person, claiming refundof any balance in the electronic cash ledger inaccordance with the provisions of sub-section (6) ofsection 49, may claim such refund in the returnfurnished under section 39 in such manner as may beprescribed.

(2) A specialized agency of the United NationsOrganization or any Multilateral Financial Institutionand Organization notified under the United Nations(Privileges and Immunities) Act, 1947, Consulate orEmbassy of foreign countries or any other person orclass of persons, as notified under section 55, entitledto a refund of tax paid by it on inward supplies ofgoods or services or both, may make an application forsuch refund, in such form and manner as may beprescribed, before the expiry of six months from thelast day of the quarter in which such supply wasreceived.

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

Provided that no refund of unutilised input taxcredit shall be allowed in cases other than-

(i) zero-rated supplies made without paymentof tax;

(ii) where the credit has accumulated onaccount of rate of tax on inputs being higher thanthe rate of tax on output supplies (other than nilrated or fully exempt supplies), except supplies

Refund oftax.



of goods or services or both as may be notifiedby the Government on the recommendations ofthe Council:

Provided further that no refund of unutilisedinput tax credit shall be allowed in cases where thegoods exported out of India are subjected to exportduty:

Provided also that no refund of input tax creditshall be allowed, if the supplier of goods or servicesor both claims refund of the integrated tax paid on suchsupplies.

(4) The application shall be accompanied by—(a) such documentary evidence as may be

prescribed to establish that a refund is due to theapplicant; and

(b) such documentary or other evidence(including the documents referred to in section33) as the applicant may furnish to establish thatthe amount of tax and interest, if any, paid onsuch tax or any other amount paid in relation towhich such refund is claimed was collected from,or paid by, him and the incidence of such tax andinterest had not been passed on to any otherperson:

Provided that where the amount claimed as refundis less than two lakh rupees, it shall not be necessaryfor the applicant to furnish any documentary and otherevidences but he may file a declaration, based on thedocumentary or other evidences available with him,certifying that the incidence of such tax and interesthad not been passed on to any other person.

(5) If, on receipt of any such application, theproper officer is satisfied that the whole or part of theamount claimed as refund is refundable, he may makean order accordingly and the amount so determinedshall 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 anyclaim for refund on account of zero-rated supply ofgoods or services or both made by registered persons,other than such category of registered persons as maybe notified by the Government on the recommendationsof the Council, refund on a provisional basis, ninetyper cent. of the total amount so claimed, excluding theamount of input tax credit provisionally accepted, insuch manner and subject to such conditions, limitationsand safeguards as may be prescribed and thereaftermake an order under sub-section (5) for finalsettlement of the refund claim after due verificationof documents furnished by the applicant.

(7) The proper officer shall issue the order undersub-section (5) within sixty days from the date ofreceipt of application complete in all respects.

(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead ofbeing credited to the Fund, be paid to the applicant, ifsuch amount is relatable to—

(a) refund of tax paid on zero-rated supplies ofgoods or services or both or on inputs or inputservices used in making such zero-rated supplies;

(b) refund of unutilised input tax credit undersub-section (3);

(c) refund of tax paid on a supply which is notprovided, either wholly or partially, and for whichinvoice has not been issued, or where a refundvoucher has been issued;

(d) refund of tax in pursuance of section 77;

(e) the tax and interest, if any, or any otheramount paid by the applicant, if he had not passedon the incidence of such tax and interest to anyother person; or


(f) the tax or interest borne by such other classof applicants as the Government may, on therecommendations of the Council, by notification,specify.

(9) Notwithstanding anything to the contrarycontained in any judgment, decree, order or directionof the Appellate Tribunal or any court or in any otherprovisions of this Act or the rules made thereunder orin any other law for the time being in force, no refundshall be made except in accordance with the provisionsof sub-section (8).

(10) Where any refund is due under sub-section(3) to a registered person who has defaulted infurnishing any return or who is required to pay any tax,interest or penalty, which has not been stayed by anycourt, Tribunal or Appellate Authority by the specifieddate, the proper officer may—

(a) withhold payment of refund due until thesaid person has furnished the return or paid thetax, interest or penalty, as the case may be;

(b) deduct from the refund due, any tax,interest, penalty, fee or any other amount whichthe taxable person is liable to pay but whichremains unpaid under this Act or under theexisting law.

Explanation.—For the purposes of this sub-section, the expression "specified date" shall mean thelast date for filing an appeal under this Act.

(11) Where an order giving rise to a refund is thesubject matter of an appeal or further proceedings orwhere any other proceedings under this Act is pendingand the Commissioner is of the opinion that grant ofsuch refund is likely to adversely affect the revenuein the said appeal or other proceedings on account ofmalfeasance or fraud committed, he may, after givingthe 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, notwithstandinganything contained in section 56, be entitled to interestat such rate not exceeding six per cent. as may benotified on the recommendations of the Council, if asa result of the appeal or further proceedings hebecomes entitled to refund.

(13) Notwithstanding anything to the contrarycontained in this section, the amount of advance taxdeposited by a casual taxable person or a non-residenttaxable person under sub-section (2) of section 27,shall not be refunded unless such person has, in respectof the entire period for which the certificate ofregistration granted to him had remained in force,furnished all the returns required under section 39.

(14) Notwithstanding anything contained in thissection, no refund under sub-section (5) or sub-section(6) shall be paid to an applicant, if the amount is lessthan one thousand rupees.


(1) "refund" includes refund of tax paid onzero-rated supplies of goods or services or bothor on inputs or input services used in makingsuch zero-rated supplies, or refund of tax on thesupply of goods regarded as deemed exports, orrefund of unutilised input tax credit as providedunder 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 respectof goods themselves or, as the case may be, theinputs or input services used in such goods,—

(i) if the goods are exported by sea orair, the date on which the ship or the aircraftin which such goods are loaded, leaves India;o r


(ii) if the goods are exported by land, thedate on which such goods pass the frontier; or

(iii) if the goods are exported by post,the date of despatch of goods by the PostOffice concerned to a place outside India;

(b) in the case of supply of goods regarded asdeemed exports where a refund of tax paid isavailable in respect of the goods, the date onwhich the return relating to such deemed exportsis furnished;

(c) in the case of services exported out ofIndia where a refund of tax paid is available inrespect of services themselves or, as the casemay be, the inputs or input services used in suchservices, the date of—

(i) receipt of payment in convertibleforeign exchange, where the supply ofservices had been completed prior to thereceipt of such payment; or

(ii) issue of invoice, where payment forthe services had been received in advance priorto the date of issue of the invoice;

(d) in case where the tax becomes refundableas a consequence of judgment, decree, order ordirection of the Appellate Authority, AppellateTribunal or any court, the date of communicationof such judgment, decree, order or direction;

(e) in the case of refund of unutilised input taxcredit under sub-section (3), the end of thefinancial year in which such claim for refundarises;

(f) in the case where tax is paid provisionallyunder this Act or the rules made thereunder, thedate of adjustment of tax after the finalassessment thereof;


(g) in the case of a person, other than thesupplier, the date of receipt of goods or servicesor both by such person; and

(h) in any other case, the date of payment oftax.

55. The Government may, on the recommendationsof the Council, by notification, specify any specializedagency of the United Nations Organization or anyMultilateral Financial Institution and Organizationnotified under the United Nations (Privileges andImmunities) Act, 1947, Consulate or Embassy offoreign countries and any other person or class ofpersons as may be specified in this behalf, who shall,subject to such conditions and restrictions as may beprescribed, be entitled to claim a refund of taxes paidon the notified supplies of goods or services or bothreceived by them.

56. If any tax ordered to be refunded undersub-section (5) of section 54 to any applicant is notrefunded within sixty days from the date of receipt ofapplication under sub-section (1) of that section,interest at such rate not exceeding six per cent. as maybe specified in the notification issued by theGovernment on the recommendations of the Councilshall be payable in respect of such refund from thedate immediately after the expiry of sixty days fromthe date of receipt of application under the saidsub-section till the date of refund of such tax:

Provided that where any claim of refund arisesfrom an order passed by an adjudicating authority orAppellate Authority or Appellate Tribunal or courtwhich has attained finality and the same is not refundedwithin sixty days from the date of receipt ofapplication filed consequent to such order, interest atsuch rate not exceeding nine per cent. as may benotified by the Government on the recommendations

Refund incertaincases.


Interest ondelayedrefunds.


of the Council shall be payable in respect of suchrefund from the date immediately after the expiry of sixtydays from the date of receipt of application till the dateof refund.

Explanation.—For the purposes of this section,where any order of refund is made by an AppellateAuthority, Appellate Tribunal or any court against anorder of the proper officer under sub-section (5) ofsection 54, the order passed by the Appellate Authority,Appellate Tribunal or by the court shall be deemed tobe an order passed under the said sub-section (5).

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

(a) the amount referred to in sub-section (5)of section 54;

(b) any income from investment of the amountcredited to the Fund; and

(c) such other monies received by it,

in such manner as may be prescribed.

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

(2) The Government or the authority specified byit shall maintain proper and separate account and otherrelevant records in relation to the Fund and prepare anannual statement of accounts in such form as may beprescribed in consultation with the Comptroller andAuditor General of India.

CHAPTER—XIIASSESSMENT

59. Every registered person shall self-assess thetaxes payable under this Act and furnish a return foreach tax period as specified under section 39.

Self-assessment.

ConsumerWelfareFund.

Utilisationof Fund.


60. (1) Subject to the provisions of sub-section (2),where the taxable person is unable to determine thevalue of goods or services or both or determine the rateof tax applicable thereto, he may request the properofficer in writing giving reasons for payment of tax ona provisional basis and the proper officer shall pass anorder, within a period not later than ninety days fromthe date of receipt of such request, allowing paymentof tax on provisional basis at such rate or on such valueas may be specified by him.

(2) The payment of tax on provisional basis maybe allowed, if the taxable person executes a bond insuch form as may be prescribed, and with such suretyor security as the proper officer may deem fit, bindingthe taxable person for payment of the differencebetween the amount of tax as may be finally assessedand the amount of tax provisionally assessed.

(3) The proper officer shall, within a period notexceeding six months from the date of thecommunication of the order issued under sub-section(1), pass the final assessment order after taking intoaccount such information as may be required forfinalizing the assessment:

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

(4) The registered person shall be liable to payinterest on any tax payable on the supply of goods orservices or both under provisional assessment but notpaid on the due date specified under sub-section (7)of section 39 or the rules made thereunder, at the ratespecified under sub-section (1) of section 50, fromthe first day after the due date of payment of tax in

Provisionalassessment.


respect of the said supply of goods or services or bothtill the date of actual payment, whether such amount ispaid before or after the issuance of order for finalassessment.

(5) Where the registered person is entitled to arefund consequent to the order of final assessmentunder sub-section (3), subject to the provisions ofsub-section (8) of section 54, interest shall be paid onsuch refund as provided in section 56.

61. (1) The proper officer may scrutinize thereturn and related particulars furnished by theregistered person to verify the correctness of thereturn and inform him of the discrepancies noticed, ifany, in such manner as may be prescribed and seek hisexplanation thereto.

(2) In case the explanation is found acceptable,the registered person shall be informed accordinglyand no further action shall be taken in this regard.

(3) In case no satisfactory explanation isfurnished within a period of thirty days of beinginformed by the proper officer or such further periodas may be permitted by him or where the registeredperson, after accepting the discrepancies, fails to takethe corrective measure in his return for the month inwhich the discrepancy is accepted, the proper officermay initiate appropriate action including those undersection 65 or section 66 or section 67, or proceed todetermine the tax and other dues under section 73 orsection 74.

62. (1) Notwithstanding anything to the contrarycontained in section 73 or section 74, where aregistered person fails to furnish the return undersection 39 or section 45, even after the service of anotice under section 46, the proper officer mayproceed to assess the tax liability of the said personto the best of his judgement taking into account all the

Scrutiny ofreturns.

Assessmentof non-filersof returns.


relevant material which is available or which he hasgathered and issue an assessment order within a periodof five years from the date specified under section 44for furnishing of the annual return for the financial yearto which the tax not paid relates.

(2) Where the registered person furnishes a validreturn within thirty days of the service of theassessment order under sub-section (1), the saidassessment order shall be deemed to have beenwithdrawn but the liability for payment of interestunder sub-section (1) of section 50 or for payment oflate fee under section 47 shall continue.

63. Notwithstanding anything to the contrarycontained in section 73 or section 74, where a taxableperson fails to obtain registration even though liableto do so or whose registration has been cancelledunder sub-section (2) of section 29 but who was liableto pay tax, the proper officer may proceed to assessthe tax liability of such taxable person to the best ofhis judgement for the relevant tax periods and issue anassessment order within a period of five years fromthe date specified under section 44 for furnishing ofthe annual return for the financial year to which thetax not paid relates:

Provided that no such assessment order shall bepassed without giving the person an opportunity ofbeing heard.

64. (1) The proper officer may, on any evidenceshowing a tax liability of a person coming to hisnotice, with the previous permission of AdditionalCommissioner or Joint Commissioner, proceed toassess the tax liability of such person to protect theinterest of revenue and issue an assessment order, ifhe has sufficient grounds to believe that any delay indoing so may adversely affect the interest of revenue:

Provided that where the taxable person to whomthe liability pertains is not ascertainable and suchliability pertains to supply of goods, the person in

Assessmentofunregisteredpersons.

Summaryassessmentin certainspecialcases.


charge of such goods shall be deemed to be the taxableperson liable to be assessed and liable to pay tax andany other amount due under this section.

(2) On an application made by the taxable personwithin thirty days from the date of receipt of orderpassed under sub-section (1) or on his own motion, ifthe Additional Commissioner or Joint Commissionerconsiders that such order is erroneous, he maywithdraw such order and follow the procedure laiddown in section 73 or section 74.

CHAPTER XIIIAUDIT

65. (1) The Commissioner or any officerauthorised by him, by way of a general or a specificorder, may undertake audit of any registered person forsuch period, at such frequency and in such manner asmay be prescribed.

(2) The officers referred to in sub-section (1)may conduct audit at the place of business of theregistered person or in their office.

(3) The registered person shall be informed byway of a notice not less than fifteen working days priorto the conduct of audit in such manner as may beprescribed.

(4) The audit under sub-section (1) shall becompleted within a period of three months from thedate of commencement of the audit:

Provided that where the Commissioner issatisfied that audit in respect of such registered personcannot be completed within three months, he may, forthe reasons to be recorded in writing, extend theperiod by a further period not exceeding six months.

Explanation.—For the purposes of this sub-section, the expression "commencement of audit" shallmean the date on which the records and otherdocuments, called for by the tax authorities, are made

Audit by taxauthorities.


available by the registered person or the actualinstitution of audit at the place of business, whicheveris later.

(5) During the course of audit, the authorisedofficer may require the registered person,—

(i) to afford him the necessary facility toverify the books of account or otherdocuments as he may require;

(ii) to furnish such information as hemay require and render assistance for timelycompletion of the audit.

(6) On conclusion of audit, the proper officershall, within thirty days, inform the registered person,whose records are audited, about the findings, hisrights and obligations and the reasons for suchfindings.

(7) Where the audit conducted under sub-section (1)results in detection of tax not paid or short paid orerroneously refunded, or input tax credit wronglyavailed or utilised, the proper officer may initiateaction under section 73 or section 74.

66. (1) If at any stage of scrutiny, inquiry,investigation or any other proceedings before him, anyofficer not below the rank of Assistant Commissioner,having regard to the nature and complexity of the caseand the interest of revenue, is of the opinion that thevalue has not been correctly declared or the creditavailed is not within the normal limits, he may, withthe prior approval of the Commissioner, direct suchregistered person by a communication in writing to gethis records including books of account examined andaudited by a chartered accountant or a cost accountantas may be nominated by the Commissioner.

(2) The chartered accountant or cost accountantso nominated shall, within the period of ninety days,submit a report of such audit duly signed and certifiedby him to the said Assistant Commissioner mentioningtherein such other particulars as may be specified:

Special audit.


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

(3) The provisions of sub-section (1) shall haveeffect notwithstanding that the accounts of theregistered person have been audited under any otherprovisions of this Act or any other law for the timebeing in force.

(4) The registered person shall be given anopportunity of being heard in respect of any materialgathered on the basis of special audit under sub-section (1) which is proposed to be used in anyproceedings against him under this Act or the rulesmade thereunder.

(5) The expenses of the examination and audit ofrecords under sub-section (1), including theremuneration of such chartered accountant or costaccountant, shall be determined and paid by theCommissioner and such determination shall be final.

(6) Where the special audit conducted under sub-section (1) results in detection of tax not paid or shortpaid or erroneously refunded, or input tax creditwrongly availed or utilised, the proper officer mayinitiate action under section 73 or section 74.

CHAPTER XIV

INSPECTION, SEARCH, SEIZURE AND ARREST

67. (1) Where the proper officer, not below therank of Joint Commissioner, has reasons to believethat—

(a) a taxable person has suppressed anytransaction relating to supply of goods orservices or both or the stock of goods in hand,or has claimed input tax credit in excess of his

Power ofinspection,search andseizure.


entitlement under this Act or has indulged incontravention of any of the provisions of this Actor the rules made thereunder to evade tax underthis Act; or

(b) any person engaged in the business oftransporting goods or an owner or operator of awarehouse or a godown or any other place iskeeping goods which have escaped payment oftax or has kept his accounts or goods in such amanner as is likely to cause evasion of taxpayable under this Act,

he may authorise in writing any other officer of Statetax to inspect any places of business of the taxableperson or the persons engaged in the business oftransporting goods or the owner or the operator ofwarehouse or godown or any other place.

(2) Where the proper officer, not below the rankof Joint Commissioner, either pursuant to aninspection carried out under sub-section (1) orotherwise, has reasons to believe that any goods liableto confiscation or any documents or books or things,which in his opinion shall be useful for or relevant toany proceedings under this Act, are secreted in anyplace, he may authorise in writing any other officer ofState tax to search and seize or may himself search andseize such goods, documents or books or things:

Provided that where it is not practicable to seizeany such goods, the proper officer, or any officerauthorised by him, may serve on the owner or thecustodian of the goods an order that he shall notremove, part with, or otherwise deal with the goodsexcept with the previous permission of such officer:

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


(3) The documents, books or things referred toin sub-section (2) or any other documents, books orthings produced by a taxable person or any otherperson, which have not been relied upon for the issueof notice under this Act or the rules made thereunder,shall be returned to such person within a period notexceeding 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 ofany premises or to break open any almirah, electronicdevices, box, receptacle in which any goods, accounts,registers or documents of the person are suspected tobe concealed, where access to such premises, almirah,electronic devices, box or receptacle is denied.

(5) The person from whose custody anydocuments are seized under sub-section (2) shallbe entitled to make copies thereof or take extractstherefrom in the presence of an authorised officer atsuch place and time as such officer may indicate inthis behalf except where making such copies or takingsuch 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, uponexecution of a bond and furnishing of a security, insuch manner and of such quantum, respectively, as maybe prescribed or on payment of applicable tax, interestand 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 sixmonths of the seizure of the goods, the goods shall bereturned to the person from whose possession theywere seized:

Provided that the period of six months may, onsufficient cause being shown, be extended by the properofficer for a further period not exceeding six months.


(8) The Government may, having regard to theperishable or hazardous nature of any goods,depreciation in the value of the goods with the passageof time, constraints of storage space for the goods orany other relevant considerations, by notification,specify the goods or class of goods which shall, assoon as may be after its seizure under sub-section (2),be disposed of by the proper officer in such manneras may be prescribed.

(9) Where any goods, being goods specifiedunder sub-section (8), have been seized by a properofficer, or any officer authorised by him undersub-section (2), he shall prepare an inventory of suchgoods in such manner as may be prescribed.

(10) The provisions of the Code of CriminalProcedure, 1973, relating to search and seizure, shall,so far as may be, apply to search and seizure under thissection subject to the modification that sub-section(5) of section 165 of the said Code shall have effectas if for the word "Magistrate", wherever it occurs, theword "Commissioner" were substituted.

(11) Where the proper officer has reasons tobelieve that any person has evaded or is attempting to evadethe payment of any tax, he may, for reasons to berecorded in writing, seize the accounts, registers ordocuments of such person produced before him andshall grant a receipt for the same, and shall retain thesame for so long as may be necessary in connectionwith any proceedings under this Act or the rules madethereunder for prosecution.

(12) The Commissioner or an officer authorisedby him may cause purchase of any goods or servicesor both by any person authorised by him from thebusiness premises of any taxable person, to check theissue of tax invoices or bills of supply by such taxableperson, and on return of goods so purchased by suchofficer, such taxable person or any person in chargeof the business premises shall refund the amount sopaid towards the goods after cancelling any tax invoiceor bill of supply issued earlier.



68. (1) The Government may require the personin charge of a conveyance carrying any consignmentof goods of value exceeding such amount as may bespecified to carry with him such documents and suchdevices as may be prescribed.

(2) The details of documents required to becarried under sub-section (1) shall be validated in suchmanner as may be prescribed.

(3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at anyplace, he may require the person in charge of the saidconveyance to produce the documents prescribedunder the said sub-section and devices for verification,and the said person shall be liable to produce thedocuments and devices and also allow the inspectionof goods.

69. (1) Where the Commissioner has reasons tobelieve that a person has committed any offencespecified in clause (a) or clause (b) or clause (c) orclause (d) of sub-section (1) of section 132 which ispunishable under clause (i) or clause (ii) of sub-section (1),or sub-section (2) of the said section, he may, by order,authorise any officer of State tax to arrest suchperson.

(2) Where a person is arrested under sub-section (1)for an offence specified under sub-section (5) ofsection 132, the officer authorised to arrest the personshall inform such person of the grounds of arrest andproduce him before a Magistrate within twenty fourhours.

(3) Subject to the provisions of the Code ofCriminal Procedure, 1973,-

(a) where a person is arrested under sub-section (1)for any offence specified under sub-section (4)of section 132, he shall be admitted to bail or indefault of bail, forwarded to the custody of theMagistrate;

Inspection ofgoods inmovement.

Power toarrest.



(b) in the case of a non-cognizable and bailableoffence, the Deputy Commissioner or theAssistant Commissioner shall, for the purpose ofreleasing an arrested person on bail or otherwise,have the same powers and be subject to the sameprovisions as an officer-in-charge of a police station.

70. (1) The proper officer under this Act shallhave power to summon any person whose attendancehe considers necessary either to give evidence or toproduce a document or any other thing in any inquiryin the same manner, as provided in the case of a civilcourt under the provisions of the Code of CivilProcedure, 1908.

(2) Every such inquiry referred to in sub-section (1)shall be deemed to be a "judicial proceedings" withinthe meaning of section 193 and section 228 of theIndian Penal Code.

71. (1) Any officer under this Act, authorised bythe proper officer not below the rank of JointCommissioner, shall have access to any place ofbusiness of a registered person to inspect books ofaccount, documents, computers, computer programs,computer software whether installed in a computer orotherwise and such other things as he may require andwhich may be available at such place, for the purposesof carrying out any audit, scrutiny, verification andchecks as may be necessary to safeguard the interestof revenue.

(2) Every person in charge of place referred toin sub-section (1) shall, on demand, make available tothe officer authorised under sub-section (1) or theaudit party deputed by the proper officer or a costaccountant or chartered accountant nominated undersection 66—

(i) such records as prepared ormaintained by the registered person anddeclared to the proper officer in such manneras may be prescribed;

(ii) trial balance or its equivalent;(iii) statements of annual financial

accounts, duly audited, wherever required;

Power tosummonpersons togiveevidence andproducedocuments.

Access tobusinesspremises.

CentralAct 5 of1908.

CentralAct 45 of1860.


(iv) cost audit report, if any, undersection 148 of the Companies Act, 2013;

(v) the income-tax audit report, if any,under section 44AB of the Income-tax Act,1961; and

(vi) any other relevant record,

for the scrutiny by the officer or audit party or thechartered accountant or cost accountant within a periodnot exceeding fifteen working days from the day whensuch demand is made, or such further period as maybe allowed by the said officer or the audit party or thechartered accountant or cost accountant.

72. (1) All officers of Police, Railways,Customs, and those officers engaged in the collectionof land revenue, including village officers, officers ofcentral tax and officers of the Union territory tax shallassist the proper officers in the implementation of thisAct.

(2) The Government may, by notification,empower and require any other class of officers toassist the proper officers in the implementation of thisAct when called upon to do so by the Commissioner.

CHAPTER XVDEMANDS AND RECOVERY

73. (1) Where it appears to the proper officer thatany tax has not been paid or short paid or erroneouslyrefunded, or where input tax credit has been wronglyavailed or utilised for any reason, other than the reasonof fraud or any wilful misstatement or suppression offacts to evade tax, he shall serve notice on the personchargeable with tax which has not been so paid orwhich has been so short paid or to whom the refundhas erroneously been made, or who has wrongly availedor utilised input tax credit, requiring him to showcause as to why he should not pay the amount specifiedin the notice along with interest payable thereon undersection 50 and a penalty leviable under the provisions ofthis Act or the rules made thereunder.

Officers toassist properofficers.



Determinationof tax notpaid or shortpaid orerroneouslyrefunded orinput taxcredit wronglyavailed orutilised forany reasonother thanfraud or anywilful-misstatementorsuppressionof facts.


(2) The proper officer shall issue the noticeunder sub-section (1) at least three months prior to thetime limit specified in sub-section (10) for issuanceof order.

(3) Where a notice has been issued for anyperiod under sub-section (1), the proper officer mayserve a statement, containing the details of tax not paidor short paid or erroneously refunded or input taxcredit wrongly availed or utilised for such periodsother than those covered under sub-section (1), on theperson chargeable with tax.

(4) The service of such statement shall bedeemed to be service of notice on such person undersub-section (1), subject to the condition that thegrounds relied upon for such tax periods other thanthose covered under sub-section (1) are the same asare mentioned in the earlier notice.

(5) The person chargeable with tax may, beforeservice of notice under sub-section (1) or, as the casemay be, the statement under sub-section (3), pay theamount of tax along with interest payable thereon undersection 50 on the basis of his own ascertainment of suchtax or the tax as ascertained by the proper officer andinform the proper officer in writing of such payment.

(6) The proper officer, on receipt of suchinformation, shall not serve any notice under sub-section (1) or, as the case may be, the statement undersub-section (3), in respect of the tax so paid or anypenalty payable under the provisions of this Act or therules made thereunder.

(7) Where the proper officer is of the opinion thatthe amount paid under sub-section (5) falls short of theamount actually payable, he shall proceed to issue thenotice as provided for in sub-section (1) in respect ofsuch amount which falls short of the amount actuallypayable.


(8) Where any person chargeable with tax undersub-section (1) or sub-section (3) pays the said taxalong with interest payable under section 50 withinthirty days of issue of show cause notice, no penaltyshall be payable and all proceedings in respect of thesaid notice shall be deemed to be concluded.

(9) The proper officer shall, after consideringthe representation, if any, made by person chargeablewith tax, determine the amount of tax, interest and apenalty equivalent to ten per cent. of tax or tenthousand rupees, whichever is higher, due from suchperson and issue an order.

(10) The proper officer shall issue the orderunder sub-section (9) within three years from the duedate for furnishing of annual return for the financialyear to which the tax not paid or short paid or inputtax credit wrongly availed or utilised relates to orwithin three years from the date of erroneous refund.

(11) Notwithstanding anything contained insub-section (6) or sub-section (8), penalty undersub-section (9) shall be payable where any amount ofself-assessed tax or any amount collected as tax hasnot been paid within a period of thirty days from thedue date of payment of such tax.

74. (1) Where it appears to the proper officerthat any tax has not been paid or short paid orerroneously refunded or where input tax credit hasbeen wrongly availed or utilised by reason of fraud, orany wilful misstatement or suppression of facts toevade tax, he shall serve notice on the personchargeable with tax which has not been so paid orwhich has been so short paid or to whom the refundhas erroneously been made, or who has wrongly availedor utilised input tax credit, requiring him to showcause as to why he should not pay the amount specifiedin the notice along with interest payable thereon undersection 50 and a penalty equivalent to the tax specifiedin the notice.

Determinationof tax not paidor short paidor erroneouslyrefunded orinput taxcredit wronglyavailed orutilised byreason offraud or anywilful-misstatementor suppressionof facts.


(2) The proper officer shall issue the noticeunder sub-section (1) at least six months prior to thetime limit specified in sub-section (10) for issuanceof order.

(3) Where a notice has been issued for anyperiod under sub-section (1), the proper officer mayserve a statement, containing the details of tax not paidor short paid or erroneously refunded or input taxcredit wrongly availed or utilised for such periodsother than those covered under sub-section (1), on theperson chargeable with tax.

(4) The service of statement under sub-section (3)sha l l be deemed to b e service o f no t ice und ersub-section (1) of section 73, subject to the conditionthat the grounds relied upon in the said statement,except the ground of fraud, or any wilful-misstatementor suppression of facts to evade tax, for periods otherthan those covered under sub-section (1) are the sameas are mentioned in the earlier notice.

(5) The person chargeable with tax may, beforeservice of notice under sub-section (1), pay theamount of tax along with interest payable under section50 and a penalty equivalent to fifteen per cent. of suchtax on the basis of his own ascertainment of such taxor the tax as ascertained by the proper officer andinform the proper officer in writing of such payment.

(6) The proper officer, on receipt of suchinformation, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penaltypayable under the provisions of this Act or the rulesmade thereunder.

(7) Where the proper officer is of the opinionthat the amount paid under sub-section (5) falls shortof the amount actually payable, he shall proceed toissue the notice as provided for in sub-section (1) inrespect of such amount which falls short of the amountactually payable.


(8) Where any person chargeable with tax undersub-section (1) pays the said tax along with interestpayable under section 50 and a penalty equivalent totwenty five per cent. of such tax within thirty days ofissue of the notice, all proceedings in respect of thesaid notice shall be deemed to be concluded.

(9) The proper officer shall, after consideringthe representation, if any, made by the personchargeable with tax, determine the amount of tax,interest and penalty due from such person and issue anorder.

(10) The proper officer shall issue the orderunder sub-section (9) within a period of five yearsfrom the due date for furnishing of annual return forthe financial year to which the tax not paid or shortpaid or input tax credit wrongly availed or utilisedrelates to or within five years from the date oferroneous refund.

(11) Where any person served with an orderissued under sub-section (9) pays the tax along withinterest payable thereon under section 50 and a penaltyequivalent to fifty per cent. of such tax within thirtydays of communication of the order, all proceedingsin respect of the said notice shall be deemed to beconcluded.

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

(i) the expression "all proceedings inrespect of the said notice" shall not includeproceedings under section 132;

(ii) where the notice under the sameproceedings is issued to the main person liableto pay tax and some other persons, and suchproceedings against the main person have beenconcluded under section 73 or section 74, theproceedings against all the persons liable topay penalty under sections 122, 125, 129 and130 are deemed to be concluded.


Explanation 2.—For the purposes of thisAct, the expression "suppression" shall meannon-declaration of facts or information which ataxable person is required to declare in the return,statement, report or any other documentfurnished under this Act or the rules madethereunder, or failure to furnish any informationon being asked for, in writing, by the properofficer.

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

(2) Where any Appellate Authority or AppellateTribunal or court concludes that the notice issuedunder sub-section (1) of section 74 is not sustainablefor the reason that the charges of fraud or any wilfulmisstatement or suppression of facts to evade tax hasnot been established against the person to whom thenotice was issued, the proper officer shall determinethe tax payable by such person, deeming as if thenotice were issued under sub-section (1) of section 73.

(3) Where any order is required to be issued inpursuance of the direction of the Appellate Authorityor Appellate Tribunal or a court, such order shall beissued within two years from the date ofcommunication of the said direction.

(4) An opportunity of hearing shall be grantedwhere a request is received in writing from the personchargeable with tax or penalty, or where any adversedecision is contemplated against such person.

(5) The proper officer shall, if sufficient causeis shown by the person chargeable with tax, grant timeto the said person and adjourn the hearing for reasonsto be recorded in writing:

Generalprovisionsrelating todeterminationof tax.


Provided that no such adjournment shall begranted for more than three times to a person duringthe proceedings.

(6) The proper officer, in his order, shall set outthe relevant facts and the basis of his decision.

(7) The amount of tax, interest and penaltydemanded in the order shall not be in excess of theamount specified in the notice and no demand shall beconfirmed on the grounds other than the groundsspecified in the notice.

(8) Where the Appellate Authority or AppellateTribunal or court modifies the amount of taxdetermined by the proper officer, the amount ofinterest 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 paidshall be payable whether or not specified in the orderdetermining the tax liability.

(10) The adjudication proceedings shall bedeemed to be concluded, if the order is not issuedwithin three years as provided for in sub-section (10)of section 73 or within five years as provided for insub-section (10) of section 74.

(11) An issue on which the Appellate Authorityor the Appellate Tribunal or the High Court has givenits decision which is prejudicial to the interest ofrevenue in some other proceedings and an appeal tothe Appellate Tribunal or the High Court or theSupreme Court against such decision of the AppellateAuthority or the Appellate Tribunal or the High Courtis pending, the period spent between the date of the decisionof the Appellate Authority and that of the AppellateTribunal or the date of decision of the AppellateTribunal and that of the High Court or the date of thedecision of the High Court and that of the SupremeCourt shall be excluded in computing the period


referred to in sub-sect ion (10) of sect ion 73 orsub-section (10) of section 74 where proceedings areinitiated by way of issue of a show cause notice underthe said sections.

(12) Notwithstanding anything contained insection 73 or section 74, where any amount of self-assessed tax in accordance with a return furnished undersection 39 remains unpaid, either wholly or partly, orany amount of interest payable on such tax remainsunpaid, the same shall be recovered under theprovisions of section 79.

(13) Where any penalty is imposed under section 73or section 74, no penalty for the same act or omissionshall be imposed on the same person under any otherprovision of this Act.

76. (1) Notwithstanding anything to the contrarycontained in any order or direction of any AppellateAuthority or Appellate Tribunal or court or in anyother provisions of this Act or the rules madethereunder or any other law for the time being inforce, every person who has collected from any otherperson any amount as representing the tax under thisAct, and has not paid the said amount to theGovernment, shall forthwith pay the said amount to theGovernment, irrespective of whether the supplies inrespect of which such amount was collected aretaxable or not.

(2) Where any amount is required to be paid tothe Government under sub-section (1), and which hasnot been so paid, the proper officer may serve on theperson liable to pay such amount a notice requiringhim to show cause as to why the said amount asspecified in the notice, should not be paid by him tothe Government and why a penalty equivalent to theamount specified in the notice should not be imposedon him under the provisions of this Act.

Tax collectedbut not paidtoGovernment.


(3) The proper officer shall, after consideringthe representation, if any, made by the person on whomthe notice is served under sub-section (2), determinethe amount due from such person and thereupon suchperson shall pay the amount so determined.

(4) The person referred to in sub-section (1)shall in addition to paying the amount referred to insub-section (1) or sub-section (3) also be liable to payinterest thereon at the rate specified under section 50from the date such amount was collected by him to thedate such amount is paid by him to the Government.

(5) An opportunity of hearing shall be grantedwhere a request is received in writing from the personto whom the notice was issued to show cause.

(6) The proper officer shall issue an order withinone year from the date of issue of the notice.

(7) Where the issuance of order is stayed by anorder of the court or Appellate Tribunal, the period ofsuch stay shall be excluded in computing the period ofone year.

(8) The proper officer, in his order, shall set outthe relevant facts and the basis of his decision.

(9) The amount paid to the Government undersub-section (1) or sub-section (3) shall be adjustedagainst the tax payable, if any, by the person in relationto the supplies referred to in sub-section (1).

(10) Where any surplus is left after theadjustment under sub-section (9), the amount of suchsurplus shall either be credited to the Fund or refundedto the person who has borne the incidence of suchamount.

(11) The person who has borne the incidence ofthe amount, may apply for the refund of the same inaccordance with the provisions of section 54.


77. (1) A registered person who has paid thecentral tax and State tax on a transaction considered byhim to be an intra-State supply, but which issubsequently held to be an inter-State supply, shall berefunded the amount of taxes so paid in such mannerand subject to such conditions as may be prescribed.

(2) A registered person who has paid integratedtax on a transaction considered by him to be aninter-State supply, but which is subsequently held tobe an intra-State supply, shall not be required to payany interest on the amount of State tax payable.

78. Any amount payable by a taxable person inpursuance of an order passed under this Act shall bepaid by such person within a period of three monthsfrom the date of service of such order failing whichrecovery proceedings shall be initiated:

Provided that where the proper officer considersit expedient in the interest of revenue, he may, forreasons to be recorded in writing, require the saidtaxable person to make such payment within suchperiod less than a period of three months as may bespecified by him.

79. (1) Where any amount payable by a person tothe Government under any of the provisions of this Actor the rules made thereunder is not paid, the properofficer shall proceed to recover the amount by one ormore of the following modes, namely:—

(a) the proper officer may deduct or mayrequire any other specified officer to deduct theamount so payable from any money owing tosuch person which may be under the control ofthe proper officer or such other specifiedofficer;

(b) the proper officer may recover or mayrequire any other specified officer to recover theamount so payable by detaining and selling anygoods belonging to such person which are underthe control of the proper officer or such otherspecified officer;

Initiation ofrecoveryproceelings.

Taxwrongfullycollected andpaid toCentralGovernmentor StateGovernment.

Recovery oftax.


(c) (i) the proper officer may, by a notice inwriting, require any other person from whommoney is due or may become due to such personor who holds or may subsequently hold moneyfor or on account of such person, to pay to theGovernment either forthwith upon the moneybecoming due or being held, or within the timespecified in the notice not being before themoney becomes due or is held, so much of themoney as is sufficient to pay the amount duefrom such person or the whole of the moneywhen it is equal to or less than that amount;

(ii) every person to whom the notice isissued under sub-clause (i) shall be bound tocomply with such notice, and in particular,where any such notice is issued to a postoffice, banking company or an insurer, it shallnot be necessary to produce any pass book,deposit receipt, policy or any other documentfor the purpose of any entry, endorsement orthe like being made before payment is made,notwithstanding any rule, practice orrequirement to the contrary;

(iii) in case the person to whom a noticeunder sub-clause (i) has been issued, fails tomake the payment in pursuance thereof to theGovernment, he shall be deemed to be adefaulter in respect of the amount specified inthe notice and all the consequences of this Actor the rules made thereunder shall follow;

(iv) the officer issuing a notice undersub-clause (i) may, at any time, amend orrevoke such notice or extend the time formaking any payment in pursuance of thenotice;

(v) any person making any payment incompliance with a notice issued under sub-clause (i) shall be deemed to have made thepayment under the authority of the person in


default and such payment being credited to theGovernment shall be deemed to constitute agood and sufficient discharge of the liability ofsuch person to the person in default to theextent of the amount specified in the receipt;

(vi) any person discharging any liabilityto the person in default after service on himof the notice issued under sub-clause (i) shallbe personally liable to the Government to theextent of the liability discharged or to theextent of the liability of the person in defaultfor tax, interest and penalty, whichever is less;

(vii) where a person on whom a notice isserved under sub-clause (i) proves to thesatisfaction of the officer issuing the noticethat the money demanded or any part thereofwas not due to the person in default or that hedid not hold any money for or on account ofthe person in default, at the time the noticewas served on him, nor is the money demandedor any part thereof, likely to become due tothe said person or be held for or on accountof such person, nothing contained in thissection shall be deemed to require the personon whom the notice has been served to pay tothe Government any such money or partthereof;

(d) the proper officer may, in accordance withthe rules to be made in this behalf, distrain anymovable or immovable property belonging to orunder the control of such person, and detain thesame until the amount payable is paid; and incase, any part of the said amount payable or ofthe cost of the distress or keeping of theproperty, remains unpaid for a period of thirtydays next after any such distress, may cause thesaid property to be sold and with the proceeds ofsuch sale, may satisfy the amount payable and thecosts including cost of sale remaining unpaid andshall render the surplus amount, if any, to suchperson;


(e) the proper officer may prepare acertificate signed by him specifying the amountdue from such person and send it to the Collectorof the district in which such person owns anyproperty or resides or carries on his business orto any officer authorised by the Government andthe said Collector or the said officer, on receiptof such certificate, shall proceed to recoverfrom such person the amount specifiedthereunder as if it were an arrear of land revenue;

(f) Notwithstanding anything contained in theCode of Criminal Procedure, 1973, the properofficer may file an application to the appropriateMagistrate and such Magistrate shall proceed torecover from such person the amount specifiedthereunder as if it were a fine imposed by him.

(2) Where the terms of any bond or otherinstrument executed under this Act or any rules orregulations made thereunder provide that any amountdue under such instrument may be recovered in themanner laid down in sub-section (1), the amount may,without prejudice to any other mode of recovery, berecovered in accordance with the provisions of thatsub-section.

(3) Where any amount of tax, interest or penaltyis payable by a person to the Government under anyof the provisions of this Act or the rules madethereunder and which remains unpaid, the properofficer of central tax, during the course of recoveryof said tax arrears, may recover the amount from thesaid person as if it were an arrear of central tax andcredit the amount so recovered to the account of theGovernment.

(4) Where the amount recovered under sub-section (3) is less than the amount due to the CentralGovernment and State Government, the amount to becredited to the account of the respective Governmentsshall be in proportion to the amount due to each suchGovernment.



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

Provided that where there is default in paymentof any one instalment on its due date, the wholeoutstanding balance payable on such date shall becomedue and payable forthwith and shall, without any furthernotice being served on the person, be liable forrecovery.

81. Where a person, after any amount has becomedue from him, creates a charge on or parts with theproperty belonging to him or in his possession by wayof sale, mortgage, exchange, or any other mode oftransfer whatsoever of any of his properties in favourof any other person with the intention of defraudingthe Government revenue, such charge or transfer shallbe void as against any claim in respect of any tax orany other sum payable by the said person:

Provided that, such charge or transfer shall notbe void if it is made for adequate consideration, ingood faith and without notice of the pendency of suchproceedings under this Act or without notice of suchtax or other sum payable by the said person, or withthe previous permission of the proper officer.

82. Notwithstanding anything to the contrarycontained in any law for the time being in force, saveas otherwise provided in the Insolvency and BankruptcyCode, 2016, any amount payable by a taxable personor any other person on account of tax, interest orpenalty which he is liable to pay to the Governmentshall be a first charge on the property of such taxableperson or such person.

Payment oftax and otheramount ininstalments.

Transfer ofproperty tobe void incertaincases.


Tax to befirst chargeon property.


83. (1) Where during the pendency of anyproceedings under section 62 or section 63 or section 64or section 67 or section 73 or section 74, theCommissioner is of the opinion that for the purposeof protecting the interest of the Government revenue,it is necessary so to do, he may, by order in writingattach provisionally any property, including bankaccount, belonging to the taxable person in such manneras may be prescribed.

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

84. Where any notice of demand in respect of anytax, penalty, interest or any other amount payable underthis Act, (hereafter in this section referred to as"Government dues"), is served upon any taxable personor any other person and any appeal or revisionapplication is filed or any other proceedings is initiatedin respect of such Government dues, then—

(a) where such Government dues are enhancedin such appeal, revision or other proceedings, theCommissioner shall serve upon the taxableperson or any other person another notice ofdemand in respect of the amount by which suchGovernment dues are enhanced and any recoveryproceedings in relation to such Government duesas are covered by the notice of demand servedupon him before the disposal of such appeal,revision or other proceedings may, without theservice of any fresh notice of demand, becontinued from the stage at which suchproceedings stood immediately before suchdisposal;

(b) where such Government dues are reducedin such appeal, revision or in otherproceedings—

(i) it shall not be necessary for theCommissioner to serve upon the taxable persona fresh notice of demand;

Provisionalattachmentto protectrevenue incertaincases.

Continuationandvalidation ofcertainrecoveryproceedings.


(ii) the Commissioner shall give intimationof such reduction to him and to the appropriateauthority with whom recovery proceedings ispending;

(iii) any recovery proceedings initiated onthe basis of the demand served upon him priorto the disposal of such appeal, revision or otherproceedings may be continued in relation tothe amount so reduced from the stage at whichsuch proceedings stood immediately beforesuch disposal.

CHAPTER XVI

L IABILITY TO PAY IN CERTAIN CASES

85. (1) Where a taxable person, liable to pay taxunder this Act, transfers his business in whole or inpart, by sale, gift, lease, leave and license, hire or inany other manner whatsoever, the taxable person andthe person to whom the business is so transferredshall, jointly and severally, be liable wholly or to theextent of such transfer, to pay the tax, interest or anypenalty due from the taxable person upto the time ofsuch transfer, whether such tax, interest or penalty hasbeen determined before such transfer, but hasremained unpaid or is determined thereafter.

(2) Where the transferee of a business referredto in sub-section (1) carries on such business eitherin his own name or in some other name, he shall beliable to pay tax on the supply of goods or services orboth effected by him with effect from the date of suchtransfer and shall, if he is a registered person underthis Act, apply within the prescribed time foramendment of his certificate of registration.

86. Where an agent supplies or receives anytaxable goods on behalf of his principal, such agent andhis principal shall, jointly and severally, be liable topay the tax payable on such goods under this Act.

Liability incase oftransfer ofbusiness.

Liability ofagent andprincipal.


87. (1) When two or more companies areamalgamated or merged in pursuance of an order ofcourt or of Tribunal or otherwise and the order is totake effect from a date earlier to the date of the orderand any two or more of such companies have suppliedor received any goods or services or both to or fromeach other during the period commencing on the datefrom which the order takes effect till the date of theorder, then such transactions of supply and receiptshall be included in the turnover of supply or receiptof the respective companies and they shall be liableto pay tax accordingly.

(2) Notwithstanding anything contained in thesaid order, for the purposes of this Act, the said twoor more companies shall be treated as distinctcompanies for the period up to the date of the saidorder and the registration certificates of the saidcompanies shall be cancelled with effect from the dateof the said order.

88. (1) When any company is being wound upwhether under the orders of a court or Tribunal orotherwise, every person appointed as receiver of anyassets of a company (hereafter in this section referredto as the "liquidator"), shall, within thirty days after hisappointment, give intimation of his appointment to theCommissioner.

(2) The Commissioner shall, after making suchinquiry or calling for such information as he maydeem fit, notify the liquidator within three monthsfrom the date on which he receives intimation of theappointment of the liquidator, the amount which in theopinion of the Commissioner would be sufficient toprovide for any tax, interest or penalty which is then,or is likely thereafter to become, payable by thecompany.

(3) When any private company is wound up andany tax, interest or penalty determined under this Acton the company for any period, whether before or inthe course of or after its liquidation, cannot be

Liability incase ofamalgamationor merger ofcompanies.

Liability incase ofcompany inliquidation.


recovered, then every person who was a director ofsuch company at any time during the period for whichthe tax was due shall, jointly and severally, be liablefor the payment of such tax, interest or penalty, unlesshe proves to the satisfaction of the Commissioner thatsuch non-recovery cannot be attributed to any grossneglect, misfeasance or breach of duty on his part inrelation to the affairs of the company.

89. (1) Notwithstanding anything contained in theCompanies Act, 2013, where any tax, interest orpenalty due from a private company in respect of anysupply of goods or services or both for any periodcannot be recovered, then, every person who was adirector of the private company during such periodshall, jointly and severally, be liable for the paymentof such tax, interest or penalty unless he proves thatthe non-recovery cannot be attributed to any grossneglect, misfeasance or breach of duty on his part inrelation to the affairs of the company.

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

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

90. Notwithstanding any contract to the contraryand any other law for the time being in force, whereany firm is liable to pay any tax, interest or penaltyunder this Act, the firm and each of the partners of thefirm shall, jointly and severally, be liable for suchpayment:

Liability ofdirectors ofprivatecompany.


Liability ofpartners offirm to paytax.


Provided that where any partner retires from thefirm, he or the firm, shall intimate the date ofretirement of the said partner to the Commissioner bya notice in that behalf in writing and such partner shallbe liable to pay tax, interest or penalty due upto thedate of his retirement whether determined or not,on that date:

Provided further that i f no such intimation isgiven within one month from the date of retirement,the liability of such partner under the first proviso shallcontinue until the date on which such intimation isreceived by the Commissioner.

91. Where the business in respect of which anytax, interest or penalty is payable under this Act iscarried on by any guardian, trustee or agent of aminor or other incapacitated person on behalf ofand for the benefi t of such minor or otherincapacitated person, the tax, interest or penaltyshall be levied upon and recoverable from suchguardian, trustee or agent in l ike manner and tothe same extent as i t would be dete rmined andrecoverable f rom any such minor o r otherincapaci ta ted person, as i f he were a major orcapacitated person and as if he were conductingthe business himsel f, and al l the provisions ofthis Act or the rules made thereunder shall applyaccordingly.

92 . Where the estate or any portion of theestate of a taxable person owning a business in respectof which any tax, interest or penalty is payable underthis Act is under the control of the Court of Wards,the Administrator General, the Official Trustee or anyreceiver or manager (including any person, whateverbe his designation, who in fact manages the business)appointed by or under any order of a court, the tax,interest or penalty shall be levied upon and berecoverable from such Court of Wards, Administrator

Liability ofguardians,trustees, etc.

Liability ofCourt ofWards, etc.


General, Official Trustee, receiver or manager in likemanner and to the same extent as it would bedetermined and be recoverable from the taxable personas if he were conducting the business himself, and allthe provisions of this Act or the rules made thereundershall apply accordingly.

93. (1) Save as otherwise provided in theInsolvency and Bankruptcy Code, 2016, where aperson, liable to pay tax, interest or penalty under thisAct, dies, then—

(a) if a business carried on by the person iscontinued after his death by his legalrepresentative or any other person, such legalrepresentative or other person, shall be liable topay tax, interest or penalty due from such personunder this Act; and

(b) if the business carried on by the person isdiscontinued, whether before or after his death,his legal representative shall be liable to pay, outof the estate of the deceased, to the extent towhich the estate is capable of meeting thecharge, the tax, interest or penalty due from suchperson under this Act,

whether such tax, interest or penalty has beendetermined before his death but has remained unpaidor is determined after his death.

(2) Save as otherwise provided in the Insolvencyand Bankruptcy Code, 2016, where a taxable person,liable to pay tax, interest or penalty under this Act, isa Hindu Undivided Family or an association of personsand the property of the Hindu Undivided Family or theassociation of persons is partitioned amongst thevarious members or groups of members, then, eachmember or group of members shall, jointly andseverally, be liable to pay the tax, interest or penalty

Specialprovisionsregardingliability to paytax, interestor penalty incertain cases.




due from the taxable person under this Act upto thetime of the partition whether such tax, penalty orinterest has been determined before partition but hasremained unpaid or is determined after the partition.

(3) Save as otherwise provided in the Insolvencyand Bankruptcy Code, 2016, where a taxable person,liable to pay tax, interest or penalty under this Act, isa firm, and the firm is dissolved, then, every personwho was a partner shall, jointly and severally, be liableto pay the tax, interest or penalty due from the firmunder this Act upto the time of dissolution whethersuch tax, interest or penalty has been determinedbefore the dissolution, but has remained unpaid or isdetermined after dissolution.

(4) Save as otherwise provided in the Insolvencyand Bankruptcy Code, 2016, where a taxable personliable to pay tax, interest or penalty under this Act,-

(a) is the guardian of a ward on whose behalfthe business is carried on by the guardian; or

(b) is a trustee who carries on the businessunder a trust for a beneficiary,

then, if the guardianship or trust is terminated, the wardor the beneficiary shall be liable to pay the tax,interest or penalty due from the taxable person uptothe time of the termination of the guardianship ortrust, whether such tax, interest or penalty has beendetermined before the termination of guardianship ortrust but has remained unpaid or is determinedthereafter.

94. (1) Where a taxable person is a firm or anassociation of persons or a Hindu Undivided Familyand such firm, association or family has discontinuedbusiness-

(a ) the tax, interest or penal ty payab leunder this Act by such firm, associat ion orfamily upto the date of such discontinuance maybe determined as if no such discontinuance hadtaken place; and


Liability inother cases.



(b) every person who, at the time of suchdiscontinuance, was a partner of such firm, or amember of such association or family, shall,notwithstanding such discontinuance, jointly andseverally, be liable for the payment of tax andinterest determined and penalty imposed andpayable by such firm, association or family,whether such tax and interest has beendetermined or penalty imposed prior to or aftersuch discontinuance and subject as aforesaid, theprovisions of this Act shall, so far as may be,apply as if every such person or partner ormember were himself a taxable person.

(2) Where a change has occurred in theconstitution of a firm or an association of persons, thepartners of the firm or members of association, as itexisted before and as it exists after the reconstitution,shall, without prejudice to the provisions of section90, jointly and severally, be liable to pay tax, interestor penalty due from such firm or association for anyperiod before its reconstitution.

(3) The provisions of sub-section (1) shall, sofar as may be, apply where the taxable person, beinga firm or association of persons is dissolved orwhere the taxable person, being a Hindu UndividedFamily, has effected partition with respect to thebusiness carried on by it and accordingly referencesin that sub-section to discontinuance shall beconstrued as reference to dissolution or to partition.

Explanation.—For the purposes of this Chapter,—

(i) a "Limited Liability Partnership" formed andregistered under the provisions of the LimitedLiability Partnership Act, 2008 shall also beconsidered as a firm;

(ii) "court" means the District Court, High Courtor Supreme Court.



CHAPTER XVII

ADVANCE RULING

95. In this Chapter, unless the context otherwiserequires,—

(a) "advance ruling" means a decision providedby the Authority or the Appellate Authority to anapplicant on matters or on questions specified insub-section (2) of section 97 or sub-section (1)of section 100, in relation to the supply of goodsor services or both being undertaken or proposedto be undertaken by the applicant;

(b) "Appellate Authority" means the AppellateAuthority for Advance Ruling constituted undersection 99;

(c) "applicant" means any person registered ordesirous of obtaining registration under this Act;

(d) "application" means an application made tothe Authority under sub-section (1) of section 97;

(e) "Authority" means the Authority forAdvance Ruling, constituted under section 96.

96. (1) The Government shall, by notification,constitute an Authority to be known as the PuducherryAuthority for Advance Ruling:

Provided that the Government may, on therecommendation of the Council, notify any Authoritylocated in another State to act as the Authority for theState.

(2) The Authority shall consist of-

(i) one member from amongst theofficers of central tax; and

(ii) one member from amongst theofficers of State tax,

to be appointed by the Central Government and theState Government, respectively.

Definitions.

Constitutionof Authorityfor AdvanceRuling.


(3) The qualifications, the method ofappointment of the members and the terms andconditions of their services shall be such as may beprescribed.

97. (1) An applicant desirous of obtaining anadvance ruling under this Chapter may make anapplication in such form and manner and accompaniedby such fee as may be prescribed, stating thequestion on which the advance ruling is sought.

(2) The question on which the advance rulingis sought under this Act, shall be in respect of, -

(a) classification of any goods or servicesor both;

(b) applicability of a notification issuedunder the provisions of this Act;

(c) determination of time and value ofsupply of goods or services or both;

(d) admissibility of input tax credit of taxpaid or deemed to have been paid;

(e) determination of the liability to pay taxon any goods or services or both;

(f) whether applicant is required to beregistered;

(g) whether any particular thing done by theapplicant with respect to any goods or servicesor both amounts to or results in a supply ofgoods or services or both, within the meaningof that term.

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

Provided that where any records have been calledfor by the Authority in any case, such records shall,as soon as possible, be returned to the said concernedofficer.

Applicationfor advanceruling.

Procedure onreceipt ofapplication.


(2) The Authority may, after examining theapplication and the records called for and after hearingthe applicant or his authorised representative and theconcerned officer or his authorised representative, byorder, either admit or reject the application:

Provided that the Authority shall not admit theapplication where the question raised in theapplication is already pending or decided in anyproceedings in the case of an applicant under any ofthe provisions of this Act:

Provided further that no application shall berejected under this sub-section unless an opportunityof hearing has been given to the applicant:

Provided also that where the application isrejected, the reasons for such rejection shall bespecified in the order.

(3) A copy of every order made under sub-section (2)shall be sent to the applicant and to the concernedofficer.

(4) Where an application is admitted under sub-section (2), the Authority shall, after examining suchfurther material as may be placed before it by theapplicant or obtained by the Authority and afterproviding an opportunity of being heard to theapplicant or his authorised representative as well as tothe concerned officer or his authorised representative,pronounce its advance ruling on the question specifiedin the application.

(5) Where the members of the Authority differon any question on which the advance ruling is sought,they shall state the point or points on which they differand make a reference to the Appellate Authority forhearing and decision on such question.

(6) The Authority shall pronounce its advanceruling in writing within ninety days from the date ofreceipt of application.


(7) A copy of the advance ruling pronounced bythe Authority duly signed by the members and certifiedin such manner as may be prescribed shall be sent tothe applicant, the concerned officer and thejurisdictional officer after such pronouncement.

99. The Government shall, by notification,constitute an Authority to be known as PuducherryAppellate Authority for Advance Ruling for Goods andServices Tax for hearing appeals against the advanceruling pronounced by the Advance Ruling Authority,consisting of-

(i) the Chief Commissioner of central tax asdesignated by the Board; and

(ii) the Commissioner of State tax:

Provided that the Government may, on therecommendations of the Council, notify any AppellateAuthority located in another State or Union territoryto act as the Appellate Authority for the State.

100. (1) The concerned officer, the jurisdictionalofficer or an applicant aggrieved by any advance rulingpronounced under sub-section (4) of section 98, mayappeal to the Appellate Authority.

(2) Every appeal under this section shall befi led within a period of thirty days from the dateon which the rul ing sought to be appealed againstis communicated to the concerned officer, thejurisdictional officer and the applicant:

Provided that the Appellate Authority may, if itis satisfied that the appellant was prevented by asufficient cause from presenting the appeal within thesaid period of thirty days, allow it to be presentedwithin a further period not exceeding thirty days.

(3) Every appeal under this section shall be insuch form, accompanied by such fee and verified insuch manner as may be prescribed.

Constitutionof AppellateAuthority forAdvanceRuling.

Appeal toAppellateAuthority.


101. (1) The Appellate Authority may, aftergiving the parties to the appeal or reference anopportunity of being heard, pass such order as it thinksfit, confirming or modifying the ruling appealed againstor referred to.

(2) The order referred to in sub-section (1) shallbe passed within a period of ninety days from the dateof filing of the appeal under section 100 or areference under sub-section (5) of section 98.

(3) Where the members of the AppellateAuthority differ on any point or points referred to inappeal or reference, it shall be deemed that no advanceruling can be issued in respect of the question underthe appeal or reference.

(4) A copy of the advance ruling pronounced bythe Appellate Authority duly signed by the Membersand certified in such manner as may be prescribed shallbe sent to the applicant, the concerned officer, thejurisdictional officer and to the Authority after suchpronouncement.

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

Provided that no rectification which has theeffect of enhancing the tax liability or reducing theamount of admissible input tax credit shall be madeunless the applicant or the appellant has been given anopportunity of being heard.

Orders ofAppellateAuthority.

Rectificationof advanceruling.


103. (1) The advance ruling pronounced by theAuthority or the Appellate Authority under thisChapter shall be binding only -

(a) on the applicant who had sought it inrespect of any matter referred to in sub-section(2) of section 97 for advance ruling;

(b) on the concerned officer or thejurisdictional officer in respect of the applicant.

(2) The advance ruling referred to in sub-section (1)shall be binding unless the law, facts or circumstancessupporting the original advance ruling have changed.

104. (1) Where the Authority or the AppellateAuthority finds that advance ruling pronounced byit under sub-sec t ion (4) o f sect ion 98 or undersub-section (1) of section 101 has been obtained bythe applicant or the appellant by fraud or suppressionof material facts or misrepresentation of facts, itmay, by order, declare such ruling to be void ab-initioand thereupon all the provisions of this Act or therules made thereunder shall apply to the applicant orthe appellant as if such advance ruling had never beenmade:

Provided that no order shall be passed under thissub-section unless an opportunity of being heard hasbeen given to the applicant or the appellant.

Explanation.—The period beginning with thedate of such advance ruling and ending with the dateof order under this sub-section shall be excluded whilecomputing the period specified in sub-sections (2) and(10) of section 73 or sub-sections (2) and (10) ofsection 74.

(2) A copy of the order made under sub-section (1)shall be sent to the applicant, the concerned officerand the jurisdictional officer.

Applicabilityof advanceruling.

Advanceruling to bevoid incertaincircumstances.


105. (1) The Authority or the Appellate Authorityshall, for the purpose of exercising its powersregarding—

(a) discovery and inspection;

(b) enforcing the attendance of any person andexamining him on oath;

(c) issuing commissions and compellingproduction of books of account and otherrecords,

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

(2) The Authority or the Appellate Authority shallbe deemed to be a civil court for the purposes ofsection 195, but not for the purposes of Chapter XXVIof the Code of Criminal Procedure, 1973, and everyproceeding before the Authority or the AppellateAuthority shall be deemed to be a judicial proceedingswithin the meaning of sections 193 and 228, and forthe purpose of section 196 of the Indian Penal Code.

106. The Authority or the Appellate Authorityshall, subject to the provisions of this Chapter, havepower to regulate its own procedure.

CHAPTER XVIII

APPEALS AND REVISION

107. (1) Any person aggrieved by any decisionor order passed under this Act or the Central Goodsand Services Tax Act by an adjudicating authority mayappeal to such Appellate Authority as may beprescribed within three months from the date on whichthe said decision or order is communicated to suchperson.

(2) The Commissioner may, on his own motion,or upon request from the Commissioner of central tax,call for and examine the record of any proceeding inwhich an adjudicating authority has passed any decision

Powers ofAuthorityand AppellateAuthority.

Procedure ofAuthority andAppellateAuthority.


CentralAct 2of 1974.CentralAct 45of 1860.

Appeals toAppellateAuthority.


or order under this Act or the Central Goods andServices Tax Act, for the purpose of satisfying himselfas to the legality or propriety of the said decision ororder and may, by order, direct any officer subordinateto him to apply to the Appellate Authority within sixmonths from the date of communication of the saiddecision or order for the determination of such pointsarising out of the said decision or order as may bespecified by the Commissioner in his order.

(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes anapplication to the Appellate Authority, such applicationshall be dealt with by the Appellate Authority as if itwere an appeal made against the decision or order ofthe adjudicating authority and such authorised officerwere an appellant and the provisions of this Actrelating to appeals shall apply to such application.

(4) The Appellate Authority may, if he is satisfiedthat the appellant was prevented by sufficient causefrom presenting the appeal within the aforesaid periodof three months or six months, as the case may be,allow it to be presented within a further period of onemonth.

(5) Every appeal under this section shall be insuch form and shall be verified in such manner as maybe prescribed.

(6) No appeal shall be filed under sub-section (1),unless the appellant has paid-

(a) in full, such part of the amount of tax,interest, fine, fee and penalty arising from theimpugned order, as is admitted by him; and

(b) a sum equal to ten per cent. of theremaining amount of tax in dispute arising fromthe said order, in relation to which the appeal hasbeen filed.


(7) Where the appellant has paid the amountunder sub-section (6), the recovery proceedings forthe balance amount shall be deemed to be stayed.

(8) The Appellate Authority shall give anopportunity to the appellant of being heard.

(9) The Appellate Authority may, if sufficientcause is shown at any stage of hearing of an appeal,grant time to the parties or any of them and adjournthe hearing of the appeal for reasons to be recordedin writing:

Provided that no such adjournment shall begranted more than three times to a party duringhearing of the appeal.

(10) The Appellate Authority may, at the time ofhearing of an appeal, allow an appellant to add anyground of appeal not specified in the grounds ofappeal, if it is satisfied that the omission of thatground from the grounds of appeal was not wilful orunreasonable.

(11) The Appellate Authority shall, after makingsuch further inquiry as may be necessary, pass suchorder, as it thinks just and proper, confirming,modifying or annulling the decision or order appealedagainst but shall not refer the case back to theadjudicating authority that passed the said decision ororder:

Provided that an order enhancing any fee orpenalty or fine in lieu of confiscation or confiscatinggoods of greater value or reducing the amount ofrefund or input tax credit shall not be passed unlessthe appellant has been given a reasonable opportunityof showing cause against the proposed order:

Provided further that where the AppellateAuthority is of the opinion that any tax has not beenpaid 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 orinput tax credit shall be passed unless the appellant isgiven notice to show cause against the proposed orderand the order is passed within the time limit specifiedunder section 73 or section 74.

(12) The order of the Appellate Authoritydisposing of the appeal shall be in writing and shallstate the points for determination, the decision thereonand the reasons for such decision.

(13) The Appellate Authority shall, where it ispossible to do so, hear and decide every appeal withina period of one year from the date on which it is filed:

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

(14) On disposal of the appeal, the AppellateAuthority shall communicate the order passed by it tothe appellant, respondent and to the adjudicatingauthority.

(15) A copy of the order passed by theAppellate Authority shall also be sent to theCommissioner or the authority designated by him inthis behalf and the jurisdictional Commissioner ofcentral tax or an authority designated by him in thisbehalf.

(16) Every order passed under this sectionshall, subject to the provisions of section 108 orsection 113 or section 117 or section 118 be finaland binding on the parties.

108. (1) Subject to the provisions of section 121and any rules made thereunder, the RevisionalAuthority may, on his own motion, or uponinformation received by him or on request from theCommissioner of central tax, call for and examine

Powers ofRevisionalAuthority.


the record of any proceedings, and if he considersthat any decision or order passed under this Act orunder the Central Goods and Services Tax Act by anyofficer subordinate to him is erroneous in so far asit is prejudicial to the interest of revenue and isillegal or improper or has not taken into accountcertain material facts, whether available at the timeof issuance of the said order or not or inconsequence of an observation by the Comptrollerand Auditor General of India, he may, if necessary,stay the operation of such decision or order for suchperiod as he deems fit and after giving the personconcerned an opportunity of being heard and aftermaking such further inquiry as may be necessary,pass such order, as he thinks just and proper,including enhancing or modifying or annulling thesaid decision or order.

(2) The Revisional Authority shall not exerciseany power under sub-section (1), if—

(a) the order has been subject to an appealunder section 107 or section 112 or section 117or section 118; or

(b) the period specified under sub-section (2)of section 107 has not yet expired or more thanthree years have expired after the passing of thedecision or order sought to be revised; or

(c) the order has already been taken forrevision under this section at an earlier stage; or

(d) the order has been passed in exercise ofthe powers under sub-section (1):

Provided that the Revisional Authority may passan order under sub-section (1) on any point which hasnot been raised and decided in an appeal referred toin clause (a) of sub-section (2), before the expiry ofa period of one year from the date of the order in suchappeal or before the expiry of a period of three yearsreferred to in clause (b) of that sub-section, whicheveris later.


(3) Every o rde r pa ssed in r ev is ion unde rsub-section (1) shall, subject to the provisions ofsection 113 or section 117 or section 118, be finaland binding on the parties.

(4) If the said decision or order involves an issueon which the Appellate Tribunal or the High Court hasgiven its decision in some other proceedings and anappeal to the High Court or the Supreme Court againstsuch decision of the Appellate Tribunal or the HighCourt is pending, the period spent between the date ofthe decision of the Appellate Tribunal and the date ofthe decision of the High Court or the date of thedecision of the High Court and the date of the decisionof the Supreme Court shall be excluded in computingthe period of limitation referred to in clause (b) ofsub-section (2) where proceedings for revision havebeen initiated by way of issue of a notice under thissection.

(5) Where the i ssuance o f an o rder undersub-section (1) is stayed by the order of a court orAppellate Tribunal, the period of such stay shall beexcluded in computing the period of limitationreferred to in clause (b) of sub-section (2).

(6) For the purposes of this section, the term,—

(i) "record" shall include all records relatingto any proceedings under this Act available at thetime of examination by the Revisional Authority;

(ii) "decision" shall include intimation givenby any officer lower in rank than the RevisionalAuthority.

109. (1) Subject to the provisions of thisChapter, the Goods and Services Tax Tribunalconstituted under the Central Goods and Services TaxAct shall be the Appellate Tribunal for hearing appealsagainst the orders passed by the Appellate Authority orthe Revisional Authority under this Act.

AppellateTribunal andBenchesthereof.


(2) The constitution and jurisdiction of the StateBench and the Area Benches located in the State shallbe in accordance with the provisions of section 109of the Central Goods and Services Tax Act or the rulesmade thereunder.

110. The qualifications, appointment, salary andallowances, terms of office, resignation and removalof the President and Members of the State Bench andArea Benches shall be in accordance with theprovisions of section 110 of the Central Goods andServices Tax Act.

111. (1) The Appellate Tribunal shall not, whiledisposing of any proceedings before it or an appealbefore it, be bound by the procedure laid down in theCode of Civil Procedure, 1908, but shall be guided bythe principles of natural justice and subject to theother provisions of this Act and the rules madethereunder, the Appellate Tribunal shall have power toregulate its own procedure.

(2) The Appellate Tribunal shall, for the purposesof discharging its functions under this Act, have thesame powers as are vested in a civil court under theCode of Civil Procedure, 1908, while trying a suit inrespect of the following matters, namely:-

(a) summoning and enforcing the attendanceof any person and examining him on oath;

(b) requiring the discovery and production ofdocuments;

(c) receiving evidence on affidavits;

(d) subject to the provisions of sections 123and 124 of the Indian Evidence Act, 1872,requisitioning any public record or document ora copy of such record or document from anyoffice;

(e) issuing commissions for the examinationof witnesses or documents;

President andMembers ofAppellateTribunal, theirqualification,appointment,conditions ofservice, etc.

ProcedurebeforeAppellateTribunal.Central

Act 5of 1908.




(f) dismissing a representation for default ordeciding it ex parte;

(g) setting aside any order of dismissal of anyrepresentation for default or any order passedby it exparte; and

(h) any other matter which may be prescribed.

(3) Any order made by the Appellate Tribunal maybe enforced by it in the same manner as if it were adecree made by a court in a suit pending therein, andit shall be lawful for the Appellate Tribunal to send forexecution of its orders to the court within the locallimits of whose jurisdiction,-

(a) in the case of an order against a company,the registered office of the company is situated;o r

(b) in the case of an order against any otherperson, the person concerned voluntarily residesor carries on business or personally works forgain.

(4) All proceedings before the Appellate Tribunalshall be deemed to be judicial proceedings within themeaning of sections 193 and 228, and for the purposesof section 196 of the Indian Penal Code, and theAppellate Tribunal shall be deemed to be civil courtfor the purposes of section 195 and Chapter XXVI ofthe Code of Criminal Procedure, 1973.

112. (1) Any person aggrieved by an orderpassed against him under section 107 or section 108of this Act or the Central Goods and Services TaxAct may appeal to the Appellate Tribunal againstsuch order within three months from the date onwhich the order sought to be appealed against iscommunicated to the person preferring the appeal.



Appeals toAppellateTribunal.


(2) The Appellate Tribunal may, in its discretion,refuse to admit any such appeal where the tax or inputtax credit involved or the difference in tax or input taxcredit involved or the amount of fine, fee or penaltydetermined by such order, does not exceed fiftythousand rupees.

(3) The Commissioner may, on his own motion,or upon request from the Commissioner of central tax,call for and examine the record of any order passedby the Appellate Authority or the Revisional Authorityunder this Act or under the Central Goods and ServicesTax Act for the purpose of satisfying himself as to thelegality or propriety of the said order and may, byorder, direct any officer subordinate to him to applyto the Appellate Tribunal within six months from thedate on which the said order has been passed fordetermination of such points arising out of the saidorder as may be specified by the Commissioner in hisorder.

(4) Where in pursuance of an order under sub-section (3) the authorised officer makes an applicationto the Appellate Tribunal, such application shall bedealt with by the Appellate Tribunal as if it were anappeal made against the order under sub-section (11)of section 107 or under sub-section (1) of section 108and the provisions of this Act shall apply to suchapplication, as they apply in relation to appeals filedunder sub-section (1).

(5) On receipt of notice that an appeal has beenpreferred under this section, the party against whomthe appeal has been preferred may, notwithstanding thathe may not have appealed against such order or anypart thereof, file, within forty-five days of the receiptof notice, a memorandum of cross-objections, verifiedin the prescribed manner, against any part of the orderappealed against and such memorandum shall bedisposed of by the Appellate Tribunal, as if it were anapp ea l p re sen ted wi thin the t ime sp ec i f i ed insub-section (1).


(6) The Appellate Tribunal may admit an appealwithin three months after the expiry of the periodreferred to in sub-section (1), or permit the filing ofa memorandum of cross-objections within forty-fivedays after the expiry of the period referred to in sub-section (5), if it is satisfied that there was sufficientcause for not presenting it within that period.

(7) An appeal to the Appellate Tribunal shall bein such form, verified in such manner and shall beaccompanied 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 theimpugned order, as is admitted by him; and

(b) a sum equal to twenty per cent. of theremaining amount of tax in dispute, in additionto the amount paid under sub-section (6) ofsection 107, arising from the said order, inrelation to which the appeal has been filed.

(9) Where the appellant has paid the amount asper sub-section (8), the recovery proceedings for thebalance amount shall be deemed to be stayed till thedisposal of the appeal.

(10) Every application made before the AppellateTribunal, -

(a) in an appeal for rectification of error orfor any other purpose; or

(b) for restoration of an appeal or anapplication,

shall be accompanied by such fees as may beprescribed.


113. (1) The Appellate Tribunal may, aftergiving the parties to the appeal an opportunity ofbeing heard, pass such orders thereon as it thinksfi t , confirming, modifying or annul l ing thedecision or order appealed against or may referthe case back to the Appellate Authori ty, or theRevis ional Authori ty or to the o r iginaladjudicat ing authori ty, with such directions as itmay think fit , for a fresh adjudicat ion or decisionafter taking additional evidence, if necessary.

(2) The Appellate Tribunal may, if sufficientcause is shown, at any stage of hearing of an appeal,grant time to the parties or any of them and adjournthe hearing of the appeal for reasons to be recordedin writing:

Provided that no such adjournment shall begranted more than three times to a party duringhearing of the appeal.

(3) The Appellate Tribunal may amend any orderpassed by it under sub-section (1) so as to rectify anyerror apparent on the face of the record, if such erroris noticed by it on its own accord, or is brought to itsnotice by the Commissioner or the Commissioner ofcentral tax or the other party to the appeal within aperiod of three months from the date of the order:

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

(4) The Appellate Tribunal shall, as far aspossible, hear and decide every appeal within a periodof one year from the date on which it is filed.

(5) The Appellate Tribunal shall send a copy ofevery order passed under this section to the AppellateAuthority or the Revisional Authority, or the original

Orders ofAppellateTribunal.


adjudicating authority, as the case may be, the appellantand the Commissioner or the jurisdictionalCommissioner of central tax.

(6) Save as provided in section 117 or section 118,orders passed by the Appellate Tribunal on an appealshall be final and binding on the parties.

114. The State President shall exercise suchfinancial and administrative powers over the StateBench and Area Benches of the Appellate Tribunal ina State, as may be prescribed:

Provided that the State President shall have theauthority to delegate such of his financial andadministrative powers as he may think fit to any otherMember or any officer of the State Bench or AreaBenches, subject to the condition that such Memberor officer shall, while exercising such delegatedpowers, continue to act under the direction, controland supervision of the State President.

115 . Where an amount paid by the appellantunder sub-section (6) of section 107 or sub-section (8)of section 112 is required to be refunded consequentto any order of the Appellate Authority or of theAppellate Tribunal, interest at the rate specified undersection 56 shall be payable in respect of such refundfrom the date of payment of the amount till the dateof refund of such amount.

116. (1) Any person who is entitled or requiredto appear before an officer appointed under this Act,or the Appellate Authority or the Appellate Tribunal inconnection with any proceedings under this Act, may,otherwise than when required under this Act to appearpersonally for examination on oath or affirmation,subject to the other provisions of this section, appearby an authorised representative.

(2) For the purposes of this Act, the expression"authorised representative" shall mean a person authorisedby the person referred to in sub-section (1) to appearon his behalf, being -

(a) his relative or regular employee; or

Financial andadministrativepowers ofStatePresident.

Interest onrefund ofamount paidforadmission ofappeal.

Appearancebyauthorisedrepresentative.


(b) an advocate who is entitled to practice inany court in India, and who has not been debarredfrom practising before any court in India; or

(c) any chartered accountant, a costaccountant or a company secretary, who holds acertificate of practice and who has not beendebarred from practice; or

(d) a retired officer of the Commercial TaxDepartment of any State Government or Unionterritory or of the Board who, during his serviceunder the Government, had worked in a post notbelow the rank than that of a Group-B Gazettedofficer for a period of not less than two years:

Provided that such officer shall not be entitledto appear before any proceedings under this Actfor a period of one year from the date of hisretirement or resignation; or

(e) any person who has been authorised to actas a goods and services tax practitioner on behalfof the concerned registered person.

(3) No person,—

(a) who has been dismissed or removed fromGovernment service; or

(b) who is convicted of an offence connectedwith any proceedings under this Act, the CentralGoods and Services Tax Act, the IntegratedGoods and Services Tax Act or the UnionTerritory Goods and Services Tax Act, or underthe existing law or under any of the Acts passedby a State Legislature dealing with theimposition of taxes on sale of goods or supplyof goods or services or both; or

(c) who is found guilty of misconduct by theprescribed authority; or

(d) who has been adjudged as an insolvent,


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

(i) for all times in case of persons referred toin clauses (a) (b) and (c); and

(ii) for the period during which the insolvencycontinues in the case of a person referred to inclause (d).

(4) Any person who has been disqualified underthe provisions of the Central Goods and Services TaxAct or the Goods and Services Tax Act of any otherState or the Union Territory Goods and Services TaxAct shall be deemed to be disqualified under this Act.

117. (1) Any person aggrieved by any orderpassed by the State Bench or Area Benches of theAppellate Tribunal may file an appeal to the HighCourt and the High Court may admit such appeal, if itis satisfied that the case involves a substantialquestion of law.

(2) An appeal under sub-section (1) shall be filedwithin a period of one hundred and eighty days fromthe date on which the order appealed against isreceived by the aggrieved person and it shall be in suchform, verified in such manner as may be prescribed:

Provided that the High Court may entertain anappeal after the expiry of the said period if it issatisfied that there was sufficient cause for not filingit within such period.

(3) Where the High Court is satisfied that asubstantial question of law is involved in any case, itshall formulate that question and the appeal shall beheard only on the question so formulated, and therespondents shall, at the hearing of the appeal, beallowed to argue that the case does not involve suchquestion:

Appeal toHigh Court.


Provided that nothing in this sub-section shall bedeemed to take away or abridge the power of the courtto hear, for reasons to be recorded, the appeal on anyother 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 oflaw so formulated and deliver such judgment thereoncontaining the grounds on which such decision isfounded and may award such cost as it deems fit.

(5) The High Court may determine any issuewhich-

(a) has not been determined by the StateBench or Area Benches; or

(b) has been wrongly determined by the StateBench or Area Benches, by reason of a decisionon such question of law as herein referred to insub-section (3).

(6) Where an appeal has been filed before theHigh Court, it shall be heard by a Bench of not lessthan two Judges of the High Court, and shall bedecided in accordance with the opinion of such Judgesor of the majority, if any, of such Judges.

(7) Where there is no such majority, the Judgesshall state the point of law upon which they differ andthe case shall, then, be heard upon that point only, byone or more of the other Judges of the High Court andsuch point shall be decided according to the opinionof the majority of the Judges who have heard the caseincluding those who first heard it.

(8) Where the High Court delivers a judgment inan appeal filed before it under this section, effectshall be given to such judgment by either side on thebasis of a certified copy of the judgment.

(9) Save as otherwise provided in this Act, theprovisions of the Code of Civil Procedure, 1908,relating to appeals to the High Court shall, as far asmay be, apply in the case of appeals under this section.



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

(a) from any order passed by the NationalBench or Regional Benches of the AppellateTribunal; or

(b) from any judgment or order passed by theHigh Court in an appeal made under section 117in any case which, on its own motion or on anapplication made by or on behalf of the partyaggrieved, immediately after passing of thejudgment or order, the High Court certifies tobe a fit one for appeal to the Supreme Court.

(2) The provisions of the Code of CivilProcedure, 1908, relating to appeals to the SupremeCourt shall, so far as may be, apply in the case ofappeals under this section as they apply in the caseof appeals from decrees of a High Court.

(3) Where the judgment of the High Court isvaried or reversed in the appeal, effect shall be givento the order of the Supreme Court in the mannerprovided in section 117 in the case of a judgmentof the High Court.

119. Notwithstanding that an appeal has beenpreferred to the High Court or the Supreme Court,sums due to the Government as a result of an orderpassed by the National or Regional Benches of theAppellate Tribunal under sub-section (1) of section 113or an order passed by the State Bench or AreaBenches of the Appellate Tribunal under sub-section (1)of section 113 or an order passed by the High Courtunder section 117, as the case may be, shall bepayable in accordance with the order so passed.

120. (1) The Commissioner may, on therecommendations of the Council, from time tot ime, issue orders or instruct ions or directionsfixing such monetary limits, as he may deem fit, forthe purposes of regulating the filing of appeal orapplication by the officer of the State tax under theprovisions of this Chapter.

Appeal toSupremeCourt.

Sums due tobe paidnotwithstandingappeal, etc.

Appeal notto be filed incertaincases.



(2) Where, in pursuance of the orders orinstructions or directions issued under sub-section (1),the officer of the State tax has not filed an appeal orapplication against any decision or order passed underthe provisions of this Act, it shall not preclude suchofficer of the State tax from filing appeal orapplication in any other case involving the same orsimilar issues or questions of law.

(3) Notwithstanding the fact that no appeal orapplication has been filed by the officer of the Statetax pursuant to the orders or instructions or directionsissued under sub-section (1), no person, being a partyin appeal or application shall contend that the officerof the State tax has acquiesced in the decision on thedisputed issue by not filing an appeal or application.

(4) The Appellate Tribunal or court hearing suchappeal or application shall have regard to thecircumstances under which appeal or application wasnot filed by the officer of the State tax in pursuanceof the orders or instructions or directions issued undersub-section (1).

121. Notwithstanding anything to the contrary inany provisions of this Act, no appeal shall lie againstany decision taken or order passed by an officer ofState tax if such decision taken or order passed relatesto any one or more of the following matters, namely:-

(a) an order of the Commissioner or otherauthority empowered to direct transfer ofproceedings from one officer to another officer;o r

(b) an order pertaining to the seizure orretention of books of account, register andother documents; or

(c) an order sanctioning prosecution underthis Act; or

(d) an order passed under section 80.

Non-appealabledecisionsand orders.


CHAPTER XIX

OFFENCES AND PENALTIES

122. (1) Where a taxable person who—

(i) supplies any goods or services or bothwithout issue of any invoice or issues anincorrect or false invoice with regard to any suchsupply;

(ii) issues any invoice or bill without supplyof goods or services or both in violation of theprovisions of this Act or the rules madethereunder;

(iii) collects any amount as tax but fails to paythe same to the Government beyond a period ofthree months from the date on which suchpayment becomes due;

(iv) collects any tax in contravention of theprovisions of this Act but fails to pay the sameto the Government beyond a period of threemonths from the date on which such paymentbecomes due;

(v) fails to deduct the tax in accordance withthe provisions of sub-section (1) of section 51,or deducts an amount which is less than theamount required to be deducted under the saidsub-section, or where he fails to pay to theGovernment under sub-section (2) thereof, theamount deducted as tax;

(vi) fails to collect tax in accordance with theprovisions of sub-section (1) of section 52, orcollects an amount which is less than the amountrequired to be collected under the said sub-sectionor where he fails to pay to the Government theamount collected as tax under sub-section (3) ofsection 52;

Penalty forcertainoffences.


(vii) takes or utilises input tax credit withoutactual receipt of goods or services or both eitherfully or partially, in contravention of theprovisions of this Act or the rules madethereunder;

(viii) fraudulently obtains refund of tax underthis Act;

(ix) takes or distributes input tax credit incontravention of section 20, or the rules madethereunder;

(x) falsifies or substitutes financial records orproduces fake accounts or documents orfurnishes any false information or return with anintention to evade payment of tax due under thisAct;

(xi) is liable to be registered under this Actbut fails to obtain registration;

(xii) furnishes any false information withregard to registration particulars, either at thetime of applying for registration, or subsequently;

(xiii) obstructs or prevents any officer indischarge of his duties under this Act;

(xiv) transports any taxable goods without thecover of documents as may be specified in thisbehalf;

(xv) suppresses his turnover leading to evasionof tax under this Act;

(xvi) fails to keep, maintain or retain books ofaccount and other documents in accordance withthe provisions of this Act or the rules madethereunder;

(xvii) fails to furnish information ordocuments called for by an officer in accordancewith the provisions of this Act or the rules madethereunder or furnishes false information ordocuments during any proceedings under this Act;


(xviii) supplies, transports or stores anygoods which he has reasons to believe are liableto confiscation under this Act;

(xix) issues any invoice or document by usingthe registration number of another registeredperson;

(xx) tampers with, or destroys any materialevidence or documents;

(xxi) disposes off or tampers with any goodsthat have been detained, seized, or attached underthis Act,

he shall be liable to pay a penalty of ten thousandrupees or an amount equivalent to the tax evadedor the tax not deducted under section 51 or shortdeducted or deducted but not paid to theGovernment or tax not collected under section52 or short collected or collected but not paidto the Government or input tax credit availed ofor passed on or distributed irregularly, or therefund claimed fraudulently, whichever is higher.

(2) Any registered person who supplies any goodsor services or both on which any tax has not been paidor short-paid or erroneously refunded, or where theinput tax credit has been wrongly availed or utilized,-

(a) for any reason, other than the reason offraud or any wilful misstatement or suppressionof facts to evade tax, shall be liable to a penaltyof ten thousand rupees or ten per cent. of the taxdue from such person, whichever is higher;

(b) for reason of fraud or any wilfulmisstatement or suppression of facts to evadetax, shall be liable to a penalty equal to tenthousand rupees or the tax due from such person,whichever is higher.


(3) Any person who—

(a) aids or abets any of the offences specifiedin clauses (i) to (xxi) of sub-section (1);

(b) acquires possession of, or in any wayconcerns himself in transporting, removing,depositing, keeping, concealing, supplying, orpurchasing or in any other manner deals with anygoods which he knows or has reasons to believeare liable to confiscation under this Act or therules made thereunder;

(c) receives or is in any way concerned withthe supply of, or in any other manner deals withany supply of services which he knows or hasreasons to believe are in contravention of anyprovisions of this Act or the rules madethereunder;

(d) fails to appear before the officer of Statetax, when issued with a summon for appearanceto give evidence or produce a document in aninquiry;

(e) fails to issue invoice in accordance withthe provisions of this Act or the rules madethereunder or fails to account for an invoice inhis books of account,

shall be liable to a penalty which may extend to twentyfive thousand rupees.

123. If a person who is required to furnish aninformation return under section 150 fails to do sowithin the period specified in the notice issued undersub-section (3) thereof, the proper officer may direct,that such person shall be liable to pay a penalty of onehundred rupees for each day of the period during whichthe failure to furnish such return continues:

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

Penalty forfailure tofurnishinformationreturn.


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

(a) without reasonable cause fails to furnishsuch information or return as may be requiredunder that section, or

(b) wilfully furnishes or causes to furnish anyinformation or return which he knows to be false,

he shall be punishable with a fine which may extendto ten thousand rupees and in case of a continuingoffence to a further fine which may extend to onehundred rupees for each day after the first day duringwhich the offence continues subject to a maximumlimit of twenty five thousand rupees.

125. Any person, who contravenes any of theprovisions of this Act or any rules made thereunder forwhich no penalty is separately provided for in this Act,shall be liable to a penalty which may extend to twentyfive thousand rupees.

126. (1) No officer under this Act shall imposeany penalty for minor breaches of tax regulations orprocedural requirements and in particular, anyomission or mistake in documentation which is easilyrectifiable and made without fraudulent intent or grossnegligence.

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

(a) a breach shall be considered a 'minor breach'if the amount of tax involved is less than fivethousand rupees;

(b) an omission or mistake in documentationshall be considered to be easily rectifiable if thesame is an error apparent on the face of record.

(2) The penalty imposed under this Act shalldepend on the facts and circumstances of each case andshall commensurate with the degree and severity of thebreach.

Fine forfailure tofurnishstatistics.

Generalpenalty.

Generaldisciplinesrelated topenalty.


(3) No penalty shall be imposed on any personwithout giving him an opportunity of being heard.

(4) The officer under this Act shall whileimposing penalty in an order for a breach of any law,regulation or procedural requirement, specify thenature of the breach and the applicable law, regulationor procedure under which the amount of penalty forthe breach has been specified.

(5) When a person voluntarily discloses to anofficer under this Act the circumstances of a breachof the tax law, regulation or procedural requirementprior to the discovery of the breach by the officerunder this Act, the proper officer may consider thisfact as a mitigating factor when quantifying a penaltyfor that person.

(6) The provisions of this section shall notapply in such cases where the penalty specifiedunder this Act is either a fixed sum or expressed asa fixed percentage.

127. Where the proper officer is of the viewthat a person is liable to a penalty and the same isnot covered under any proceedings under section 62or section 63 or section 64 or section 73 or section74 or section 129 or section 130, he may issue anorder levying such penalty after giving a reasonableopportunity of being heard to such person.

128. The Government may, by notification,waive in part or full, any penalty referred to insection 122 or section 123 or section 125 or anylate fee referred to in section 47 for such class oftaxpayers and under such mitigating circumstancesas may be specified therein on the recommendationsof the Council.

129. (1) Notwithstanding anything contained inthis Act, where any person transports any goods orstores any goods while they are in transit incontravention of the provisions of this Act or the rulesmade thereunder, all such goods and conveyance usedas a means of transport for carrying the said goods and

Power toimposepenalty incertaincases.

Power towaivepenalty orfee or both.

Detentionseizure andrelease ofgoods andconveyancesin transit.


documents relating to such goods and conveyance shallbe liable to detention or seizure and after detention orseizure, shall be released,—

(a) on payment of the applicable tax andpenalty equal to one hundred per cent. of the taxpayable on such goods and, in case of exemptedgoods, on payment of an amount equal to two percent of the value of goods or twenty fivethousand rupees, whichever is less, where theowner of the goods comes forward for paymentof such tax and penalty;

(b) on payment of the applicable tax andpenalty equal to the fifty per cent. of the valueof the goods reduced by the tax amount paidthereon and, in case of exempted goods, onpayment of an amount equal to five per cent ofthe value of goods or twenty five thousandrupees, whichever is less, where the owner of thegoods does not come forward for payment ofsuch tax and penalty;

(c) upon furnishing a security equivalent to theamount payable under clause (a) or clause (b)insuch form and manner as may be prescribed:

Provided that no such goods or conveyanceshall be detained or seized without serving anorder of detention or seizure on the persontransporting the goods.

(2) The provisions of sub-section (6) of section67 shall, mutatis mutandis, apply for detention andseizure of goods and conveyances.

(3) The proper officer detaining or seizing goodsor conveyances shall issue a notice specifying the taxand penalty payable and thereafter, pass an order forpayment of tax and penalty under clause (a) or clause(b) or clause (c).


(4) No tax, interest or penalty shall bedetermined under sub-section (3) without giving theperson concerned an opportunity of being heard.

(5) On payment of amount referred in sub-section (1),all proceedings in respect of the notice specified insub-section (3) shall be deemed to be concluded.

(6) Where the person transporting any goods orthe owner of the goods fails to pay the amount of taxand penalty as provided in sub-section (1) within sevendays of such detention or seizure, further proceedingsshall be initiated in accordance with the provisions ofsection 130:

Provided that where the detained or seized goodsare perishable or hazardous in nature or are likely todepreciate in value with passage of time, the saidperiod of seven days may be reduced by the properofficer.

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

(i) supplies or receives any goods incontravention of any of the provisions of thisAct or the rules made thereunder with intentto evade payment of tax; or

(ii) does not account for any goods onwhich he is liable to pay tax under this Act; or

(iii) supplies any goods liable to tax underthis Act without having applied for registration; or

(iv) contravenes any of the provisions ofthis Act or the rules made thereunder withintent to evade payment of tax; or

(v) uses any conveyance as a means oftransport for carriage of goods incontravention of the provisions of this Act orthe rules made thereunder unless the owner of

Confiscationof goods orconveyancesand levy ofpenalty.


the conveyance proves that it was so usedwithout the knowledge or connivance of theowner himself, his agent, if any, and the personin charge of the conveyance,

then, all such goods or conveyances shall be liable toconfiscation and the person shall be liable to penaltyunder section 122.

(2) Whenever confiscation of any goods orconveyance is authorised by this Act, the officeradjudging it shall give to the owner of the goods anoption to pay in lieu of confiscation, such fine as thesaid officer thinks fit:

Provided that such fine leviable shall not exceedthe market value of the goods confiscated, less the taxchargeable thereon:

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

Provided also that where any such conveyanceis used for the carriage of the goods or passengers forhire, the owner of the conveyance shall be given anoption to pay in lieu of the confiscation of theconveyance a fine equal to the tax payable on thegoods being transported thereon.

(3) Where any fine in lieu of confiscation ofgoods or conveyance is imposed under sub-section (2),the owner of such goods or conveyance or the personreferred to in sub-section (1), shall, in addition, beliable to any tax, penalty and charges payable in respectof such goods or conveyance.

(4) No order for confiscation of goods orconveyance or for imposition of penalty shall be issuedwithout giving the person an opportunity of beingheard.

(5) Where any goods or conveyance areconfiscated under this Act, the title of such goods orconveyance shall thereupon vest in the Government.


(6) The proper officer adjudging confiscationshall take and hold possession of the thingsconfiscated and every officer of Police, on therequisition of such proper officer, shall assist him intaking and holding such possession.

(7) The proper officer may, after satisfyinghimself that the confiscated goods or conveyance arenot required in any other proceedings under this Actand after giving reasonable time not exceeding threemonths to pay fine in lieu of confiscation, dispose ofsuch goods or conveyance and deposit the saleproceeds thereof with the Government.

131. Without prejudice to the provisionscontained in the Code of Criminal Procedure, 1973,no confiscation made or penalty imposed under theprovisions of this Act or the rules made thereundershall prevent the infliction of any other punishment towhich the person affected thereby is liable under theprovisions of this Act or under any other law for thetime being in force.

132. (1) Whoever commits any of the followingoffences, namely:-

(a) supplies any goods or services or bothwithout issue of any invoice, in violation of theprovisions of this Act or the rules madethereunder, with the intention to evade tax;

(b) issues any invoice or bill without supplyof goods or services or both in violation of theprovisions of this Act, or the rules madethereunder leading to wrongful availment orutilisation of input tax credit or refund of tax;

(c) avails input tax credit using such invoiceor bill referred to in clause (b);


Confiscationor penaltynot tointerferewith otherpunishments.

Punishmentfor certainoffences.


(d) collects any amount as tax but fails to paythe same to the Government beyond a period ofthree months from the date on which such paymentbecomes due;

(e) evades tax, fraudulently avails input taxcredit or fraudulently obtains refund and wheresuch offence is not covered under clauses (a) to (d);

(f) falsifies or substitutes financial records orproduces fake accounts or documents or furnishesany false information with an intention to evadepayment of tax due under this Act;

(g) obstructs or prevents any officer in thedischarge of his duties under this Act;

(h) acquires possession of, or in any wayconcerns himself in transporting, removing,depositing, keeping, concealing, supplying,purchasing or in any other manner deals with, anygoods which he knows or has reasons to believeare liable to confiscation under this Act or therules made thereunder;

(i) receives or is in any way concerned with thesupply of, or in any other manner deals with anysupply of services which he knows or has reasonsto believe are in contravention of any provisionsof this Act or the rules made thereunder;

(j) tampers with or destroys any materialevidence or documents;

(k) fails to supply any information which he isrequired to supply under this Act or the rulesmade thereunder or (unless with a reasonablebelief, the burden of proving which shall be uponhim, that the information supplied by him is true)supplies false information; or

(l) attempts to commit, or abets thecommission of any of the offences mentioned inclauses (a) to (k) of this section,


shall be punishable—

(i) in cases where the amount of tax evadedor the amount of input tax credit wronglyavailed or utilised or the amount of refundwrongly taken exceeds five hundred lakhrupees, with imprisonment for a term which mayextend to five years and with fine;

(ii) in cases where the amount of tax evadedor the amount of input tax credit wronglyavailed or utilised or the amount of refundwrongly taken exceeds two hundred lakh rupeesbut does not exceed five hundred lakh rupees,with imprisonment for a term which may extendto three years and with fine;

(iii) in the case of any other offence wherethe amount of tax evaded or the amount of inputtax credit wrongly availed or utilised or theamount of refund wrongly taken exceeds onehundred lakh rupees but does not exceed twohundred lakh rupees , with impr isonmentfor a term which may extend to one year andwith fine;

(iv) in cases where he commits or abets thecommission of an offence specified in clause(f) or clause (g) or clause (j), he shall bepunishable with imprisonment for a term whichmay extend to six months or with fine or withboth.

(2) Where any person convicted of an offenceunder this section is again convicted of an offenceunder this section, then, he shall be punishable for thesecond and for every subsequent offence withimprisonment for a term which may extend to fiveyears 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 reasonsto the contrary to be recorded in the judgment of theCourt, be for a term not less than six months.


(4) Notwithstanding anything contained in theCode of Criminal Procedure, 1973, all offences under thisAct, except the offences referred to in sub-section (5) shallbe non-cognizable and bailable.

(5) The offences specified in clause (a) or clause(b) or clause (c) or clause (d) of sub-section (1) andpunishable under clause (i) of that sub-section shall becognizable and non-bailable.

(6) A person shall not be prosecuted for anyoffence under this section except with the previoussanction of the Commissioner.

Explanation.—For the purposes of this section,the term "tax" shall include the amount of tax evadedor the amount of input tax credit wrongly availed orutilised or refund wrongly taken under the provisionsof this Act, the Central Goods and Services Tax Act,the Integrated Goods and Services Tax Act, and cesslevied under the Goods and Services Tax(Compensation to States) Act.

133. (1) Where any person engaged inconnection with the collection of statistics undersection 151 or compilation or computerisation thereofor if any officer of State tax having access toinformation specified under sub-section (1) of section150, or if any person engaged in connection with theprovision of service on the common portal or the agentof common portal, wilfully discloses any informationor the contents of any return furnished under this Actor rules made thereunder otherwise than in executionof his duties under the said sections or for thepurposes of prosecution for an offence under this Actor under any other Act for the time being in force, heshall be punishable with imprisonment for a term whichmay extend to six months or with fine which mayextend to twenty five thousand rupees, or with both.


Liability ofofficers andcertain otherpersons.


(2) Any person—(a) who is a Government servant shall not be

prosecuted for any offence under this sectionexcept with the previous sanction of theGovernment;

(b) who is not a Government servant shall notbe prosecuted for any offence under this sectionexcept with the previous sanction of theCommissioner.

134. No court shall take cognizance of anyoffence punishable under this Act or the rules madethereunder except with the previous sanction of theCommissioner, and no court inferior to that of aMagistrate of the First Class, shall try any suchoffence.

135. In any prosecution for an offence under thisAct which requires a culpable mental state on the partof the accused, the court shall presume the existenceof such mental state but it shall be a defence for theaccused to prove the fact that he had no such mentalstate with respect to the act charged as an offence inthat prosecution.


(i) the expression "culpable mental state"includes intention, motive, knowledge of afact, and belief in, or reason to believe, a fact;

(ii) a fact is said to be proved only whenthe court believes it to exist beyondreasonable doubt and not merely when itsexistence is established by a preponderance ofprobability.

136. A statement made and signed by a person onappearance in response to any summons issued undersection 70 during the course of any inquiry or

Cognizanceof offences.

Presumptionof culpablemental state.

Relevancy ofstatementsunder certaincircumstances.


proceedings under this Act shall be relevant, for thepurpose of proving, in any prosecution for an offenceunder this Act, the truth of the facts which it contains,-

(a) when the person who made the statementis dead or cannot be found, or is incapable ofgiving evidence, or is kept out of the way by theadverse party, or whose presence cannot beobtained without an amount of delay or expensewhich, under the circumstances of the case, thecourt considers unreasonable; or

(b) when the person who made the statementis examined as a witness in the case before thecourt and the court is of the opinion that, havingregard to the circumstances of the case, thestatement should be admitted in evidence in theinterest of justice.

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

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has beencommitted by a company and it is proved that theoffence has been committed with the consent orconnivance of, or is attributable to any negligence onthe part of, any director, manager, secretary or otherofficer of the company, such director, manager,secretary or other officer shall also be deemed to beguilty of that offence and shall be liable to beproceeded against and punished accordingly.

(3) Where an offence under this Act has beencommitted by a taxable person being a partnershipfirm or a Limited Liability Partnership or a HinduUndivided Family or a trust, the partner or karta or

Offences byCompanies.


managing trustee shall be deemed to be guilty of thatoffence and shall be liable to be proceeded against andpunished accordingly and the provisions of sub-section (2)shall mutatis mutandis apply to such persons.

(4) Nothing contained in this section shall renderany such person liable to any punishment provided inthis Act, if he proves that the offence was committedwithout his knowledge or that he had exercised all duediligence to prevent the commission of such offence.


(i) "company" means a body corporate andincludes a firm or other association ofindividuals; and

(ii) "director", in relation to a firm, meansa partner in the firm.

138. (1) Any offence under this Act may, eitherbefore or after the institution of prosecution, becompounded by the Commissioner on payment, by theperson accused of the offence, to the CentralGovernment or the State Government, as the case maybe, of such compounding amount in such manner as maybe prescribed:

Provided that nothing contained in this sectionshall apply to—

(a) a person who has been allowed tocompound once in respect of any of the offencesspecified in clauses (a) to (f) of sub-section (1)of section 132 and the offences specified inclause (l) which are relatable to offencesspecified in clauses (a) to (f) of the said sub-section;

(b) a person who has been allowed tocompound once in respect of any offence, otherthan those in clause (a), under this Act or underthe provisions of any State Goods and Services

Compoundingof offences.


Tax Act or the Central Goods and Services TaxAct or the Union Territory Goods and ServicesTax Act or the Integrated Goods and Services TaxAct in respect of supplies of value exceeding onecrore rupees;

(c) a person who has been accused ofcommitting an offence under this Act which isalso an offence under any other law for the timebeing in force;

(d) a person who has been convicted for anoffence under this Act by a court;

(e) a person who has been accused ofcommitting an offence specified in clause (g) orclause (j) or clause(k) of sub-section (1) ofsection 132; and

(f) any other class of persons or offences asmay be prescribed:

Provided further that any compounding allowedunder the provisions of this section shall not affect theproceedings, if any, instituted under any other law:

Provided also that compounding shall be allowedonly after making payment of tax, interest and penaltyinvolved in such offences.

(2) The amount for compounding of offencesunder this section shall be such as may be prescribed,subject to the minimum amount not being less than tenthousand rupees or fifty per cent. of the tax involved,whichever is higher, and the maximum amount notbeing less than thirty thousand rupees or one hundredand fifty per cent. of the tax, whichever is higher.

(3) On payment of such compounding amount asmay be determined by the Commissioner, no furtherproceedings shall be initiated under this Act against theaccused person in respect of the same offence and anycriminal proceedings, if already initiated in respect ofthe said offence, shall stand abated.


CHAPTER XX

T RANSITIONAL P ROVISIONS

139. (1) On and from the appointed day, everyperson registered under any of the existing laws andhaving a valid Permanent Account Number shall beissued a certificate of registration on provisional basis,subject to such conditions and in such form and manneras may be prescribed, which unless replaced by a finalcertificate of registration under sub-section (2), shallbe liable to be cancelled if the conditions soprescribed are not complied with.

(2) The final certificate of registration shall begranted in such form and manner and subject to suchconditions as may be prescribed.

(3) The certificate of registration issued to aperson under sub-section (1) shall be deemed to havenot been issued if the said registration is cancelled inpursuance of an application filed by such person thathe was not liable to registration under section 22 orsection 24.

140. (1) A registered person, other than a personopting to pay tax under section 10, shall be entitledto take, in his electronic credit ledger, credit of theamount of Value Added Tax, if any, carried forward inthe return relating to the period ending with the dayimmediately preceding the appointed day, furnished byhim under the existing law in such manner as may beprescribed:

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

(i) where the said amount of credit is notadmissible as input tax credit under this Act;o r

Migration ofexistingtaxpayers.

Transitionalarrangementsfor input taxcredit.


(ii) where he has not furnished all thereturns required under the existing law for theperiod of six months immediately precedingthe appointed date:

Provided further that so much of the said creditas is attributable to any claim related to section 3,sub-section (3) of section 5, section 6, section 6A orsub-section (8) of section 8 of the Central Sales TaxAct, 1956 which is not substantiated in the manner, andwithin the period, prescribed in rule 12 of the CentralSales Tax (Registration and Turnover) Rules, 1957shall not be eligible to be credited to the electroniccredit ledger:

Provided also that an amount equivalent to thecredit specified in the second proviso shall berefunded under the existing law when the said claimsare substantiated in the manner prescribed in rule 12of the Central Sales Tax (Registration and Turnover)Rules, 1957.

(2) A registered person, other than a personopting to pay tax under section 10, shall be entitledto take, in his electronic credit ledger, credit of theunavailed input tax credit in respect of capital goods,not carried forward in a return, furnished under theexisting law by him, for the period ending with the dayimmediately preceding the appointed day in suchmanner as may be prescribed:

Provided that the registered person shall not beallowed to take credit unless the said credit wasadmissible as input tax credit under the existing lawand is also admissible as input tax credit under this Act.

Explanation.—For the purposes of this section,the expression "unavailed input tax credit" means theamount that remains after subtracting the amount ofinput tax credit already availed in respect of capitalgoods by the taxable person under the existing lawfrom the aggregate amount of input tax credit to whichthe said person was entitled in respect of the saidcapital goods under the existing law.



(3) A registered person, who was not liable to beregistered under the existing law or who was engagedin the sale of exempted goods or tax free goods, bywhatever name called, under the existing law but whichare liable to tax under this Act or where the person wasentitled to the credit of input tax at the time of saleof goods, if any, shall be entitled to take, in hiselectronic credit ledger, credit of the value added taxin respect of inputs held in stock and inputs containedin semi-finished or finished goods held in stock on theappointed day subject to the following conditionsnamely:—

(i) such inputs or goods are used orintended to be used for making taxablesupplies under this Act;

(ii) the said registered person is eligible forinput tax credit on such inputs under this Act;

(iii) the said registered person is inpossession of invoice or other prescribeddocuments evidencing payment of tax underthe existing law in respect of such inputs; and

(iv) such invoices or other prescribeddocuments were issued not earlier than twelvemonths immediately preceding the appointedday:

Provided that where a registered person, otherthan a manufacturer or a supplier of services, is notin possession of an invoice or any other documentsevidencing payment of tax in respect of inputs, then,such registered person shall, subject to suchconditions, limitations and safeguards as may beprescribed, including that the said taxable person shallpass on the benefit of such credit by way of reducedprices to the recipient, be allowed to take credit at suchrate and in such manner as may be prescribed.


(4) A registered person, who was engaged in thesale of taxable goods as well as exempted goods or taxfree goods, by whatever name called, under the existinglaw but which are liable to tax under this Act, shall beentitled to take, in his electronic credit ledger,-

(a) the amount of credit of the value added tax,if any, carried forward in a return furnished underthe existing law by him in accordance with theprovisions of sub-section (1); and

(b) the amount of credit of the value added tax,if any, in respect of inputs held in stock andinputs contained in semi-finished or finishedgoods held in stock on the appointed day, relatingto such exempted goods or tax free goods, bywhatever name called, in accordance with theprovisions of sub-section (3).

(5) A registered person shall be entitled to take,in his electronic credit ledger, credit of value addedtax, if any, in respect of inputs received on or after theappointed day but the tax in respect of which has beenpaid by the supplier under the existing law, subject tothe condition that the invoice or any other tax payingdocument of the same was recorded in the books ofaccount of such person within a period of thirty daysfrom the appointed day:

Provided that the period of thirty days may, onsufficient cause being shown, be extended by theCommissioner for a further period not exceedingthirty days:

Provided further that the said registered personshall furnish a statement, in such manner as may beprescribed, in respect of credit that has been takenunder this sub-section.

(6) A registered person, who was either payingtax at a fixed rate or paying a fixed amount in lieu ofthe tax payable under the existing law shall be entitledto take, in his electronic credit ledger, credit of value


added tax in respect of inputs held in stock and inputscontained in semi-finished or finished goods held instock on the appointed day subject to the followingconditions, namely:—

(i) such inputs or goods are used or intendedto be used for making taxable supplies underthis Act;

(ii) the said registered person is not payingtax under section 10;

(iii) the said registered person is eligiblefor input tax credit on such inputs under thisAct;

(iv) the said registered person is inpossession of invoice or other prescribeddocuments evidencing payment of tax underthe existing law in respect of inputs; and

(v) such invoices or other prescribeddocuments were issued not earlier than twelvemonths immediately preceding the appointedday.

(7) The amount of credit under sub-sections (3),(4) and (6) shall be calculated in such manner as maybe prescribed.

141. (1) Where any inputs received at a place ofbusiness had been despatched as such or despatchedafter being partially processed to a job-worker forfurther processing, testing, repair, reconditioning orany other purpose in accordance with the provisionsof existing law prior to the appointed day and suchinputs are returned to the said place on or after theappointed day, no tax shall be payable if such inputs, aftercompletion of the job-work or otherwise, are returnedto the said place within six months from the appointedday:

Transitionalprovisionsrelating tojob work.


Provided that the period of six months may, onsufficient cause being shown, be extended by theCommissioner for a further period not exceeding twomonths:

Provided further that if such inputs are notreturned within the period specified in this sub-section, the input tax credit shall be liable to berecovered in accordance with the provisions of clause(a) of sub-section (8) of section 142.

(2) Where any semi-finished goods had beendespatched from the place of business to any otherpremises for carrying out certain manufacturingprocesses in accordance with the provisions ofexisting law prior to the appointed day and such goods(hereafter in this sub-section referred to as "the saidgoods") are returned to the said place on or after theappointed day, no tax shall be payable if the said goods,after undergoing manufacturing processes orotherwise, are returned to the said place within sixmonths from the appointed day:


Provided further that if the said goods are notreturned within a period specified in this sub-section,the input tax credit shall be liable to be recovered inaccordance with the provisions of clause (a) of sub-section (8) of section 142:

Provided also that the person despatching thegoods may, in accordance with the provisions of theexisting law, transfer the said goods to the premisesof any registered person for the purpose of supplyingthere from on payment of tax in India or withoutpayment of tax for exports within the period specifiedin this sub-section.


(3) Where any goods had been despatched fromthe place of business without payment of tax forcarrying out tests or any other process, to any otherpremises, whether registered or not, in accordancewith the provisions of existing law prior to theappointed day and such goods, are returned to the saidplace of business on or after the appointed day, no taxshall be payable if the said goods, after undergoingtests or any other process, are returned to such placewithin six months from the appointed day:


Provided further that if the said goods are notreturned within the period specified in this sub-section, the input tax credit shall be liable to berecovered in accordance with the provisions of clause(a) of sub-section (8) of section 142:

Provided also that the person despatching thegoods may, in accordance with the provisions of theexisting law, transfer the said goods from the saidother premises on payment of tax in India or withoutpayment of tax for exports within the period specifiedin this sub-section.

(4) The tax under sub-sections (1), (2) and (3)shall not be payable, only if the person despatching thegoods and the job-worker declare the details of theinputs or goods held in stock by the job-worker onbehalf of the said person on the appointed day in suchform and manner and within such time as may beprescribed.

142. (1) Where any goods on which tax, if any,had been paid under the existing law at the time of salethereof, not being earlier than six months prior to theappointed day, are returned to any place of business on

Miscellaneoustransitionalprovisions.


or after the appointed day, the registered person shallbe eligible for refund of the tax paid under the existinglaw where such goods are returned by a person, otherthan a registered person, to the said place of businesswithin a period of six months from the appointed dayand such goods are identifiable to the satisfaction ofthe proper officer:

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

(2) (a) where, in pursuance of a contractentered into prior to the appointed day, the priceof any goods is revised upwards on or after theappointed day, the registered person who had soldsuch goods shall issue to the recipient asupplementary invoice or debit note, containingsuch particulars as may be prescribed, withinthirty days of such price revision and for thepurposes of this Act, such supplementary invoiceor debit note shall be deemed to have beenissued in respect of an outward supply madeunder this Act;

(b) where, in pursuance of a contract enteredinto prior to the appointed day, the price of anygoods is revised downwards on or after theappointed day, the registered person who had soldsuch goods may issue to the recipient a creditnote, containing such particulars as may beprescribed, within thirty days of such pricerevision and for the purposes of this Act suchcredit note shall be deemed to have been issuedin respect of an outward supply made under thisAct:

Provided that the registered person shall beallowed to reduce his tax liability on account of issueof the credit note only if the recipient of the creditnote has reduced his input tax credit corresponding tosuch reduction of tax liability.


(3) Every claim for refund filed by any personbefore, on or after the appointed day for refund of anyamount of input tax credit, tax, interest or any otheramount paid under the existing law, shall be disposedof in accordance with the provisions of existing lawand any amount eventually accruing to him shall berefunded to him in cash in accordance with theprovisions of the said law:

Provided that where any claim for refund of theamount of input tax credit is fully or partially rejected,the amount so rejected shall lapse:

Provided further that no refund shall be allowedof any amount of input tax credit where the balance ofthe said amount as on the appointed day has beencarried forward under this Act.

(4) Every claim for refund filed after theappointed day for refund of any tax paid under theexisting law in respect of the goods exported beforeor after the appointed day, shall be disposed of inaccordance with the provisions of the existing law:

Provided that where any claim for refund of inputtax credit is fully or partially rejected, the amount sorejected shall lapse:

Provided further that no refund shall be allowedof any amount of input tax credit where the balance ofthe said amount as on the appointed day has beencarried forward under this Act.

(5) Notwithstanding anything to the contrarycontained in this Act, any amount of input tax creditreversed prior to the appointed day shall not beadmissible as input tax credit under this Act.

(6) (a) every proceeding of appeal, revision,review or reference relating to a claim for input taxcredit initiated whether before, on or after theappointed day under the existing law shall be disposed


of in accordance with the provisions of the existinglaw, and any amount of credit found to be admissibleto the claimant shall be refunded to him in cash inaccordance with the provisions of the existing law, andthe amount rejected, if any, shall not be admissible asinput tax credit under this Act:

Provided that no refund shall be allowed of anyamount of input tax credit where the balance of thesaid amount as on the appointed day has been carriedforward under this Act;

(b) every proceeding of appeal, revision, reviewor reference relating to recovery of input tax creditinitiated whether before, on or after the appointed dayunder the existing law shall be disposed of inaccordance with the provisions of the existing law, andif any amount of credit becomes recoverable as a resultof such appeal, revision, review or reference, the sameshall, unless recovered under the existing law, berecovered as an arrear of tax under this Act and theamount so recovered shall not be admissible as inputtax credit under this Act.

(7) (a) every proceeding of appeal, revision,review or reference relating to any output tax liabilityinitiated whether before, on or after the appointed dayunder the existing law, shall be disposed of inaccordance with the provisions of the existing law, andif any amount becomes recoverable as a result of suchappeal, revision, review or reference, the same shall,unless recovered under the existing law, be recoveredas an arrear of tax under this Act and the amount sorecovered shall not be admissible as input tax creditunder this Act.

(b) every proceeding of appeal, revision, reviewor reference relating to any output tax liabilityinitiated whether before, on or after the appointed dayunder the existing law, shall be disposed of inaccordance with the provisions of the existing law, and


any amount found to be admissible to the claimantshall be refunded to him in cash in accordance with theprovisions of the existing law and the amount rejected,if any, shall not be admissible as input tax credit underthis Act.

(8) (a) where in pursuance of an assessment oradjudication proceedings instituted, whether before,on or after the appointed day under the existing law,any amount of tax, interest, fine or penalty becomesrecoverable from the person, the same shall, unlessrecovered under the existing law, be recovered as anarrear of tax under this Act and the amount sorecovered shall not be admissible as input tax creditunder this Act;

(b) where in pursuance of an assessment oradjudication proceedings instituted, whether before,on or after the appointed day under the existing law,any amount of tax, interest, fine or penalty becomesrefundable to the taxable person, the same shall berefunded to him in cash under the said law, and theamount rejected, if any, shall not be admissible asinput tax credit under this Act.

(9) (a) where any return, furnished under theexisting law, is revised after the appointed day and if,pursuant to such revision, any amount is found to berecoverable or any amount of input tax credit is foundto be inadmissible, the same shall, unless recoveredunder the existing law, be recovered as an arrear of taxunder this Act and the amount so recovered shall notbe admissible as input tax credit under this Act;

(b) where any return, furnished under the existinglaw, is revised after the appointed day but within thetime limit specified for such revision under theexisting law and if, pursuant to such revision, anyamount is found to be refundable or input tax creditis found to be admissible to any taxable person, thesame shall be refunded to him in cash under theexisting law, and the amount rejected, if any, shall notbe admissible as input tax credit under this Act.


(10) Save as otherwise provided in this Chapter,the goods or services or both supplied on or after theappointed day in pursuance of a contract entered intoprior to the appointed day shall be liable to tax underthe provisions of this Act.

(11) (a) notwithstanding anything contained insection 12, no tax shall be payable on goods under thisAct to the extent the tax was leviable on the said goodsunder the Puducherry Value Added Tax Act, 2007;

(b) notwithstanding anything contained in section 13,no tax shall be payable on services under this Act tothe extent the tax was leviable on the said services underChapter V of the Finance Act, 1994;

(c) where tax was paid on any supply, both underthe Puducherry Value Added Tax Act, 2007 and underChapter V of the Finance Act, 1994, tax shall beleviable under this Act and the taxable person shall beentitled to take credit of value added tax or service taxpaid under the existing law to the extent of suppliesmade after the appointed day and such credit shall becalculated in such manner as may be prescribed.

(12) Where any goods sent on approval basis, notearlier than six months before the appointed day, arerejected or not approved by the buyer and returned tothe seller on or after the appointed day, no tax shallbe payable thereon if such goods are returned withinsix months from the appointed day:

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

Provided further that the tax shall be payable bythe person returning the goods if such goods are liableto tax under this Act, and are returned after the periodspecified in this sub-section:

ActNo. 9of 2007.


ActNo. 9of 2007.CentralAct 32of 1994.


Provided also that tax shall be payable by theperson who has sent the goods on approval basis ifsuch goods are liable to tax under this Act, and are notreturned within the period specified in this sub-section.

(13) Where a supplier has made any sale ofgoods in respect of which tax was required to bededucted at source under the Puducherry Value AddedTax Act, 2007 and has also issued an invoice for thesame before the appointed day, no deduction of tax atsource under section 51 shall be made by the deductorunder the said section where payment to the saidsupplier is made on or after the appointed day.

(14) Where any goods or capital goods belongingto the principal are lying at the premises of the agenton the appointed day, the agent shall be entitled to takecredit of the tax paid on such goods or capital goodssubject to fulfilment of the following conditions:

(i) the agent is a registered taxable personunder this Act;

(ii) both the principal and the agent declarethe details of stock of goods or capital goodslying with such agent on the day immediatelypreceding the appointed day in such form andmanner and within such time as may beprescribed in this behalf;

(iii) the invoices for such goods or capitalgoods had been issued not earlier than twelvemonths immediately preceding the appointedday; and

(iv) the principal has either reversed or notavailed of the input tax credit in respect ofsuch,-

(a) goods; or

(b) capital goods or, having availed ofsuch credit, has reversed the said credit, tothe extent availed of by him.

ActNo. 9 of2007.


Explanat ion .— For the purposes of th isChapter, the expression "capital goods" shall havethe same meaning as assigned to i t in thePuducherry Value Added Tax Act, 2007.

CHAPTER XXI

M ISCELLANEOUS

143. (1) A registered person (hereafter in thissection referred to as the "principal") may, underintimation and subject to such conditions as may beprescribed, send any inputs or capital goods, withoutpayment of tax, to a job-worker for job-work and fromthere subsequently send to another job-worker andlikewise, and shall,—

(a) bring back inputs, after completion of job-work or otherwise, or capital goods, other thanmoulds and dies, jigs and fixtures, or tools, withinone year and three years, respectively, of theirbeing 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 thanmoulds and dies, jigs and fixtures, or tools, withinone year and three years, respectively, of theirbeing sent out from the place of business of a job-worker on payment of tax within India, or with orwithout payment of tax for export, as the case may be:

Provided that the principal shall not supply thegoods from the place of business of a job-workerin accordance with the provisions of this clauseunless the said principal declares the place ofbusiness of the job-worker as his additional placeof business except in a case—

(i) where the job-worker is registered undersection 25; or

Job workprocedure.

ActNo. 9 of2007.


(ii) where the principal is engaged in thesupply of such goods as may be notified by theCommissioner.

(2) The responsibility for keeping properaccounts for the inputs or capital goods shall lie withthe principal.

(3) Where the inputs sent for job-work are notreceived back by the principal after completion of job-work or otherwise in accordance with the provisionsof clause (a) of sub-section (1) or are not suppliedfrom the place of business of the job-worker inaccordance with the provisions of clause (b) ofsub-section (1) within a period of one year of theirbeing sent out, it shall be deemed that such inputs hadbeen supplied by the principal to the job-worker on theday when the said inputs were sent out.

(4) Where the capital goods, other than mouldsand dies, jigs and fixtures, or tools, sent for job-workare not received back by the principal in accordancewith the provisions of clause (a) of sub-section (1) orare 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 oftheir being sent out, it shall be deemed that suchcapital goods had been supplied by the principal to thejob-worker on the day when the said capital goods weresent out.

(5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generatedduring the job-work may be supplied by the job-workerdirectly from his place of business on payment of tax,if such job-worker is registered, or by the principal,if the job-worker is not registered.

Explanation.—For the purposes of job-work,input includes intermediate goods arising from anytreatment or process carried out on the inputs by theprincipal or the job-worker.


144. Where any document-

(i) is produced by any person under this Actor any other law for the time being in force;o r

(ii) has been seized from the custody orcontrol of any person under this Act or anyother law for the time being in force; or

(iii) has been received from any placeoutside India in the course of any proceedingsunder this Act or any other law for the timebeing in force,

and such document is tendered by the prosecution inevidence against him or any other person who is triedjointly with him, the court shall—

(a) unless the contrary is proved by suchperson, presume—

(i) the truth of the contents of suchdocument;

(ii) that the signature and every other part ofsuch document which purports to be in thehandwriting of any particular person or whichthe court may reasonably assume to have beensigned by, or to be in the handwriting of, anyparticular person, is in that person's handwriting,and in the case of a document executed orattested, that it was executed or attested by theperson by whom it purports to have been soexecuted or attested;

(b) admit the document in evidencenotwithstanding that it is not duly stamped, ifsuch document is otherwise admissible inevidence.

Presumptionas todocuments incertain cases.


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

(a) a micro film of a document or thereproduction of the image or images embodiedin such micro film (whether enlarged or not); or

(b) a facsimile copy of a document; or

(c) a statement contained in a document andincluded in a printed material produced by acomputer, subject to such conditions as may beprescribed; or

(d) any information stored electronically inany device or media, including any hard copiesmade of such information,

shall be deemed to be a document for the purposes ofthis Act and the rules made thereunder and shall beadmissible in any proceedings thereunder, withoutfurther proof or production of the original, asevidence of any contents of the original or of any factstated therein of which direct evidence would beadmissible.

(2) In any proceedings under this Act or the rulesma d e t h e r e u n d e r , wh e r e i t i s d e s i r e d t o g i v ea statement in evidence by virtue of this section, acertificate,—

(a) identifying the document containing thestatement and describing the manner in which itwas produced;

(b) giving such particulars of any deviceinvolved in the production of that document asmay be appropriate for the purpose of showingthat the document was produced by a computer,

Admissibilityof microfilms,facsimilecopies ofdocumentsandcomputerprintouts asdocumentsand asevidence.


shall be evidence of any matter stated in the certificateand for the purposes of this sub-section it shall besufficient for a matter to be stated to the best of theknowledge and belief of the person stating it.

146. The Government may, on therecommendations of the Council, notify theCommon Goods and Services Tax Electronic Portalfor facilitating registration, payment of tax,furnishing of returns, computation and settlement ofintegrated tax, electronic way bill and for carrying outsuch other functions and for such purposes as may beprescribed.

147. The Government may, on therecommendations of the Council, notify certainsupplies of goods as "deemed exports", where goodssupplied do not leave India, and payment for suchsupplies is received either in Indian rupees or inconvertible foreign exchange, if such goods aremanufactured in India.

148. The Government may, on therecommendations of the Council, and subject to suchconditions and safeguards as may be prescribed, notifycertain classes of registered persons, and the specialprocedures to be followed by such persons includingthose with regard to registration, furnishing of return,payment of tax and administration of such persons.

149. (1) Every registered person may be assigneda goods and services tax compliance rating score bythe Government based on his record of compliancewith the provisions of this Act.

(2) The goods and services tax compliance ratingscore may be determined on the basis of suchparameters as may be prescribed.

(3) The goods and services tax compliancerating score may be updated at periodic intervals andintimated to the registered person and also placed inthe public domain in such manner as may beprescribed.

CommonPortal.

Specialprocedurefor certainprocesses.

Goods andservices taxcompliancerating.

DeemedExports.


150. (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 Governmentresponsible for the collection of value added taxor sales tax or State excise duty or an authorityof the Central Government responsible for thecollection of excise duty or customs duty; or

(d) an income tax authority appointed underthe provisions of the Income-tax Act, 1961; or

(e) a banking company within the meaning ofclause (a) of section 45A of the Reserve Bank ofIndia Act, 1934; or

(f) a State Electricity Board or an electricitydistribution or transmission licensee under theElectricity Act, 2003, or any other entityentrusted with such functions by the CentralGovernment or the State Government; or

(g) the Registrar or Sub-Registrar appointedunder section 6 of the Registration Act, 1908; or

(h) a Registrar within the meaning of theCompanies Act, 2013; or

(i) the registering authority empowered toregister motor vehicles under the Motor VehiclesAct, 1988; or

(j) the Collector referred to in clause (c) ofsection 3 of the Right to Fair Compensation andTransparency in Land Acquisition, Rehabilitationand Resettlement Act, 2013; or

Obligation tofurnishinformationreturn.









(k) the recognised stock exchange referred toin clause (f) of section 2 of the SecuritiesContracts (Regulation) Act, 1956; or

(l) a depository referred to in clause (e) ofsub-section (1) of section 2 of the DepositoriesAct, 1996; or

(m) an officer of the Reserve Bank of India asconstituted under section 3 of the Reserve Bankof India Act, 1934; or

(n) the Goods and Services Tax Network, a companyregistered under the Companies Act, 2013; or

(o) a person to whom a Unique IdentityNumber has been granted under sub-section (9)of section 25; or

(p) any other person as may be specified, onthe recommendations of the Council, by theGovernment,

who is responsible for maintaining record ofregistration or statement of accounts or any periodicreturn or document containing details of payment oftax and other details of transaction of goods orservices or both or transactions related to a bankaccount or consumption of electricity or transactionof purchase, sale or exchange of goods or property orright or interest in a property under any law for thetime being in force, shall furnish an information returnof the same in respect of such periods, within suchtime, in such form and manner and to such authorityor agency as may be prescribed.

(2) Where the Commissioner, or an officerauthorised by him in this behalf, considers that theinformation furnished in the information return isdefective, he may intimate the defect to the person






who has furnished such information return and givehim an opportunity of rectifying the defect within aperiod of thirty days from the date of such intimationor within such further period which, on an applicationmade in this behalf, the said authority may allow andif the defect is not rectified within the said period ofthirty days or, the further period so allowed, then,notwithstanding anything contained in any otherprovisions of this Act, such information return shallbe treated as not furnished and the provisions of thisAct shall apply.

(3) Where a person who is required to furnishinformation return has not furnished the same withinthe time specified in sub-section (1) or sub-section (2),the said authority may serve upon him a noticerequiring furnishing of such information return withina period not exceeding ninety days from the date ofservice of the notice and such person shall furnish theinformation return.

151. (1) The Commissioner may, if he considersthat it is necessary so to do, by notification, direct thatstatistics may be collected relating to any matter dealtwith by or in connection with this Act.

(2) Upon such notification being issued, theCommissioner, or any person authorised by him in thisbehalf, may call upon the concerned persons to furnishsuch information or returns, in such form and manneras may be prescribed, relating to any matter in respectof which statistics is to be collected.

152. (1) No information of any individual returnor part thereof with respect to any matter given for thepurposes of section 150 or section 151 shall, withoutthe previous consent in writing of the concernedperson or his authorised representative, be publishedin such manner so as to enable such particulars to beidentified as referring to a particular person and no suchinformation shall be used for the purpose of anyproceedings under this Act.

Power tocollectstatistics.

Bar ondisclosure ofinformation.


(2) Except for the purposes of prosecution underthis Act or any other Act for the time being in force,no person who is not engaged in the collection ofstatistics under this Act or compilation orcomputerisation thereof for the purposes of this Act,shall be permitted to see or have access to anyinformation or any individual return referred to insection 151.

(3) Nothing in this section shall apply to thepublication of any information relating to a class oftaxable persons or class of transactions, if in theopinion of the Commissioner, it is desirable in thepublic interest to publish such information.

153. Any officer not below the rank of AssistantCommissioner may, having regard to the nature andcomplexity of the case and the interest of revenue,take assistance of any expert at any stage of scrutiny,inquiry, investigation or any other proceedings beforehim.

154. The Commissioner or an officer authorisedby him may take samples of goods from thepossession of any taxable person, where he considersit necessary, and provide a receipt for any samples sotaken.

155. Where any person claims that he is eligiblefor input tax credit under this Act, the burden ofproving such claim shall lie on such person.

156. All persons discharging functions under thisAct shall be deemed to be public servants within themeaning of section 21 of the Indian Penal Code.

157. (1) No suit, prosecution or other legalproceedings shall lie against the President, StatePresident, Members, officers or other employees of theAppellate Tribunal or any other person authorised bythe said Appellate Tribunal for anything which is ingood faith done or intended to be done under this Actor the rules made thereunder.

Takingassistancefrom anexpert.

Power totakesamples.

Burden ofproof.

Personsdeemed to bepublicservants.

Protection ofaction takenunder thisAct.



(2) No suit, prosecution or other legal proceedingsshall lie against any officer appointed or authorisedunder this Act for anything which is done or intendedto be done in good faith under this Act or the rules madethereunder.

158. (1) All particulars contained in any statementmade, return furnished or accounts or documentsproduced in accordance with this Act, or in any recordof evidence given in the course of any proceedingsunder this Act (other than proceedings before a criminalcourt), or in any record of any proceedings under thisAct shall, save as provided in sub-section (3), not bedisclosed.

(2) Notwithstanding anything contained in theIndian Evidence Act, 1872, no court shall, save asotherwise provided in sub-section (3), require anyofficer appointed or authorised under this Act toproduce before it or to give evidence before it inrespect of particulars referred to in sub-section (1).

(3) Nothing contained in this section shall applyto the disclosure of,—

(a) any particulars in respect of any statement,return, accounts, documents, evidence, affidavitor deposition, for the purpose of any prosecutionunder the Indian Penal Code or the Prevention ofCorruption Act, 1988, or any other law for thetime being in force; or

(b) any particulars to the Central Governmentor the State Government or to any person actingin the implementation of this Act, for thepurposes of carrying out the objects of this Act;or

Disclosureofinformationby a publicservant.

.





(c) any particulars when such disclosure isoccasioned by the lawful exercise under this Actof any process for the service of any notice orrecovery of any demand; or

(d) any particulars to a civil court in any suitor proceedings, to which the Government or anyauthority under this Act is a party, which relatesto any matter arising out of any proceedings underthis Act or under any other law for the time beingin force authorising any such authority to exerciseany powers thereunder; or

(e) any particulars to any officer appointed forthe purpose of audit of tax receipts or refunds ofthe tax imposed by this Act; or

(f) any particulars where such particulars arerelevant for the purposes of any inquiry into theconduct of any officer appointed or authorisedunder this Act, to any person or personsappointed as an inquiry officer under any law forthe time being in force; or

(g) any such particulars to an officer of theCentral Government or of any State Government,as may be necessary for the purpose of enablingthat Government to levy or realise any tax orduty; or

(h) any particulars when such disclosure isoccasioned by the lawful exercise by a publicservant or any other statutory authority, of his orits powers under any law for the time being inforce; or

(i) any particulars relevant to any inquiry intoa charge of misconduct in connection with anyproceedings under this Act against a practisingadvocate, a tax practitioner, a practising costaccountant, a practising chartered accountant, apractising company secretary to the authority


empowered to take disciplinary action against themembers practising the profession of a legalpractitioner, a cost accountant, a charteredaccountant or a company secretary, as the casemay be; or

(j) any particulars to any agency appointed forthe purposes of data entry on any automatedsystem or for the purpose of operating, upgradingor maintaining any automated system where suchagency is contractually bound not to use ordisclose such particulars except for the aforesaidpurposes; or

(k) any such particulars to an officer of theGovernment as may be necessary for thepurposes of any other law for the time being inforce; and

(l) any information relating to any class oftaxable persons or class of transactions forpublication, if, in the opinion of theCommissioner, it is desirable in the publicinterest, to publish such information.

159. (1) If the Commissioner, or any otherofficer authorised by him in this behalf, is of theopinion that it is necessary or expedient in the publicinterest to publish the name of any person and anyother particulars relating to any proceedings orprosecution under this Act in respect of such person,it may cause to be published such name and particularsin such manner as it thinks fit.

(2) No publication under this section shall bemade in relation to any penalty imposed under this Actuntil the time for presenting an appeal to the AppellateAuthority under section 107 has expired without anappeal having been presented or the appeal, ifpresented, has been disposed of.

Explanation.—In the case of firm, company orother association of persons, the names of the partnersof the firm, directors, managing agents, secretaries andtreasurers or managers of the company, or the members

Publicationofinformationin respect ofpersons incertaincases.


of the association, as the case may be, may also bepublished if, in the opinion of the Commissioner, or anyother officer authorised by him in this behalf,circumstances of the case justify it.

160. (1) No assessment, re-assessment,adjudication, review, revision, appeal, rectification,notice, summons or other proceedings done, accepted,made, issued, initiated, or purported to have been done,accepted, made, issued, initiated in pursuance of any ofthe provisions of this Act shall be invalid or deemed tobe invalid merely by reason of any mistake, defect oromission therein, if such assessment, re-assessment,adjudication, review, revision, appeal, rectification,notice, summons or other proceedings are insubstance and effect in conformity with or accordingto the intents, purposes and requirements of this Actor any existing law.

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

161. Without prejudice to the provisions ofsection 160, and notwithstanding anything contained inany other provisions of this Act, any authority, who haspassed or issued any decision or order or notice orcertificate or any other document, may rectify anyerror which is apparent on the face of record in suchdecision or order or notice or certificate or any otherdocument, either on its own motion or where sucherror is brought to its notice by any officer appointedunder this Act or an officer appointed under the CentralGoods and Services Tax Act or by the affected personwithin a period of three months from the date of issueof such decision or order or notice or certificate or anyother document, as the case may be:

Assessmentproceedings,etc., not tobe invalid oncertaingrounds.

Rectificationof errorsapparent onthe face ofrecord.


Provided that no such rectification shall be doneafter a period of six months from the date of issue ofsuch decision or order or notice or certificate or anyother document:

Provided further that the said period of sixmonths shall not apply in such cases where therectification is purely in the nature of correction of aclerical or arithmetical error, arising from anyaccidental slip or omission:

Provided also that where such rectificationadversely affects any person, the principles of naturaljustice shall be followed by the authority carrying outsuch rectification.

162. Save as provided in sections 117 and 118,no civil court shall have jurisdiction to deal with ordecide any question arising from or relating toanything done or purported to be done under this Act.

163. Wherever a copy of any order or documentis to be provided to any person on an application madeby him for that purpose, there shall be paid such feeas may be prescribed.

164. (1) The Government may, on therecommendations of the Council, by notification, makerules for carrying out the provisions of this Act.

(2) Without prejudice to the generality of theprovisions of sub-section (1), the Government maymake rules for all or any of the matters which by thisAct are required to be, or may be, prescribed or inrespect of which provisions are to be or may be madeby rules.

(3) The power to make rules conferred by thissection shall include the power to give retrospectiveeffect to the rules or any of them from a date not earlierthan the date on which the provisions of this Act comeinto force.

Bar onjurisdictionof civilcourts.

Levy of fee.

Power ofGovernmentto makerules.


(4) Any rules made under sub-section (1) orsub-section (2) may provide that a contraventionthereof shall be liable to a penalty not exceeding tenthousand rupees.

165. The Government may, by notification, makeregulations consistent with this Act and the rules madethereunder to carry out the provisions of this Act.

166. Every rule made by the Government, everyregulation made by the Government and everynotification issued by the Government under this Act,shall be laid, as soon as may be after it is made orissued, before the State Legislature, while it is insession, for a total period of thirty days which may becomprised in one session or in two or moresuccessive sessions, and if, before the expiry of thesession immediately following the session or thesuccessive sessions aforesaid, the State Legislatureagrees in making any modification in the rule orregulation or in the notification, as the case may be,or the State Legislature agrees that the rule orregulation or the notification should not be made, therule or regulation or notification, as the case may be,shall thereafter have effect only in such modified formor be of no effect, as the case may be; so, however,that any such modification or annulment shall bewithout prejudice to the validity of anything previouslydone under that rule or regulation or notification, asthe case may be.

167. The Commissioner may, by notification,direct that subject to such conditions, if any, as maybe specified in the notification, any power exercisableby any authority or officer under this Act may beexercisable also by another authority or officer as maybe specified in such notification.

168. The Commissioner may, if he considers itnecessary or expedient so to do for the purpose ofuniformity in the implementation of this Act, issue suchorders, instructions or directions to the State tax

Power tomakeregulations.

Laying ofrules,regulationsandnotifications.

Delegationof powers.

Power toissueinstructionsor directions.


officers as it may deem fit, and thereupon all suchofficers and all other persons employed in theimplementation of this Act shall observe and follow suchorders, instructions or directions.

169. (1) Any decision, order, summons, notice orother communication under this Act or the rules madethereunder shall be served by any one of the followingmethods, namely:-

(a) by giving or tendering it directly or by amessenger including a courier to the addresseeor the taxable person or to his manager orauthorised representative or an advocate or a taxpractitioner holding authority to appear in theproceedings on behalf of the taxable person orto a person regularly employed by him inconnection with the business, or to any adultmember of family residing with the taxableperson; or

(b) by registered post or speed post or courierwith acknowledgement due, to the person forwhom it is intended or his authorisedrepresentative, if any, at his last known place ofbusiness or residence; or

(c) by sending a communication to his e-mailaddress provided at the time of registration or asamended from time to time; or

(d) by making it available on the commonportal; or

(e) by publication in a newspaper circulatingin the locality in which the taxable person or theperson to whom it is issued is last known to haveresided, carried on business or personally workedfor gain; or

(f) if none of the modes aforesaid ispracticable, by affixing it in some conspicuousplace at his last known place of business orresidence and if such mode is not practicable for

Service ofnotice incertaincircumstances.


any reason, then by affixing a copy thereof on thenotice board of the office of the concernedofficer or authority who or which passed suchdecision or order or issued such summons ornotice.

(2) Every decision, order, summons, notice orany communication shall be deemed to have beenserved on the date on which it is tendered or publishedor a copy thereof is affixed in the manner provided insub-section (1).

(3) When such decision, order, summons, noticeor any communication is sent by registered post orspeed post, it shall be deemed to have been receivedby the addressee at the expiry of the period normallytaken by such post in transit unless the contrary isproved.

170. The amount of tax, interest, penalty, fine orany other sum payable, and the amount of refund or anyother sum due, under the provisions of this Act shallbe rounded off to the nearest rupee and, for thispurpose, where such amount contains a part of a rupeeconsisting of paise, then, if such part is fifty paise ormore, it shall be increased to one rupee and if suchpart is less than fifty paise it shall be ignored.

171. (1) Any reduction in rate of tax on any supplyof goods or services or the benefit of input tax creditshall be passed on to the recipient by way ofcommensurate reduction in prices.

(2) The Central Government may, onrecommendations of the Council, by notification,constitute an Authority, or empower an existingAuthority constituted under any law for the time beingin force, to examine whether input tax credits availedby any registered person or the reduction in the taxrate have actually resulted in a commensuratereduction in the price of the goods or services or bothsupplied by him.

Anti-profiteeringmeasure.

Rounding offof tax, etc.


(3) The Authority referred to in sub-section (2)shall exercise such powers and discharge suchfunctions as may be prescribed.

172. (1) If any difficulty arises in giving effect toany provisions of this Act, the Government may, on therecommendations of the Council, by a general or aspecial order published in the Official Gazette, makesuch provisions not inconsistent with the provisionsof this Act or the rules or regulations madethereunder, as may be necessary or expedient for thepurpose of removing the said difficulty:

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

(2) Every order made under this section shall belaid, as soon as may be, after it is made, before theState Legislature.

173. Save as otherwise provided in this Act, onand from the date of commencement of this Act,-

(1) in the Puducherry Municipalities Act, 1973,-

(a) in section 118, in sub-section (1), inclause (a), sub-clause (iii) shall be omitted;

(b) sections 152, 153, 154, 155, 156 and 157 shallbe omitted; and

(c) schedule-VII appended to the Act shall beomitted.

(2) Save as otherwise provided in this Act ,on and from the date o f commencement of th isAct, the provisions , under any State law,authorizing levy and collect ion of taxes or cessor surcharge by the Government or a Municipalityor a Commune Panchayat or any other authority

Removal ofdifficulties.

Amendmentof certainActs.

ActNo. 9of 1973.


s hall stand annulled or rescinded or modified inas much as and to the extent such taxes are thesubject matter of Entry 52, Entry 54, Entry 55 andEntry 62 of the State List of the Seventh Scheduleof the Constitution, as amended by the Constitution(One Hundredth and First Amendment) Act, 2016.

174. (1) Save as otherwise provided in this Act,on and from the date of commencement of this Act,

(i) The Puducherry Value Added Tax Act, 2007,except in respect of goods included in the Entry54 of the State List of the Seventh Schedule tothe Constitution, and

(ii) The Puducherry Sugarcane Developmentand Levy of Cess Act, 1965,

(hereafter referred to as the repealed Acts) are herebyrepealed.

(2) The repeal of the said Acts and the amendmentof the Act specified in section 173 (hereafter referredto as "such amendment" or "amended Act", as the casemay be) to the extent mentioned in sub-section (1) orsection 173 shall not-

(a) revive anything not in force or existing atthe time of such amendment or repeal; or

(b) affect the previous operation of theamended Acts or repealed Acts and orders oranything duly done or suffered thereunder; or

(c) affect any right, privilege, obligation, orliability acquired, accrued or incurred under theamended Acts or repealed Acts or orders undersuch repealed or amended Acts:

Repeal andsaving.

ActNo. 9of 2007.

ActNo. 17of 1965.


Provided that any tax exemption granted as anincentive against investment through anotification shall not continue as privilege if thesaid notification is rescinded on or after theappointed day; or

(d) affect any tax, surcharge, penalty, fine,interest as are due or may become due or anyforfeiture or punishment incurred or inflicted inrespect of any offence or violation committedagainst the provisions of the amended Acts orrepealed Acts; or

(e) affect any investigation, inquiry,verification (including scrutiny and audit),assessment proceedings, adjudication and anyother legal proceedings or recovery of arrears orremedy in respect of any such tax, surcharge,penalty, fine, interest, right, privilege, obligation,liability, forfeiture or punishment, as aforesaid,and any such investigation, inquiry, verification(including scrutiny and audit), assessmentproceedings, adjudication and other legalproceedings or recovery of arrears or remedymay be instituted, continued or enforced, and anysuch tax, surcharge, penalty, fine, interest,forfeiture or punishment may be levied orimposed as if these Acts had not been soamended or repealed; or

(f) affect any proceedings including thatrelating to an appeal, revision, review orreference, instituted before, on or after theappointed day under the said amended Acts orrepealed Acts and such proceedings shall becontinued under the said amended Acts orrepealed Acts as if this Act had not come intoforce and the said Acts had not been amended orrepealed.


(3) Notwithstanding anything contained in thissection, any action or proceedings already initiated byinvoking the powers vested under section 81 of thePuducherry Value Added Tax Act, 2007 shall continueto be valid till the final disposal of the proceedings.

(4) The mention of the par ticular mattersreferred to in section 173 and sub-section (1) shallnot be held to prejudice or affect the generalapplication of section 2 of the Puducherry GeneralClauses Act, 1965 with regard to the effect of repeal.

SCHEDULE I

[See section 7]

ACTIVITIES TO BE TREATED AS SUPPLY EVEN IFMADE WITHOUT CONSIDERATION

1. Permanent transfer or disposal of businessassets where input tax credit has been availed onsuch assets.

2. Supply of goods or services or both betweenrelated persons or between distinct persons asspecified in section 25, when made in the courseor furtherance of business:

Provided that gifts not exceeding fifty thousandrupees in value in a financial year by an employerto an employee shall not be treated as supply ofgoods or services or both.

3. Supply of goods—

(a) by a principal to his agent where theagent undertakes to supply such goods onbehalf of the principal; or

ActNo. 9of 2007.

ActNo. 13of 1965.


(b) by an agent to his principal where theagent undertakes to receive such goods onbehalf of the principal.

4. Import of services by a taxable person froma related person or from any of his otherestablishments outside India, in the course orfurtherance of business.

SCHEDULE II

[See section 7]

ACTIVITIES TO BE TREATED AS SUPPLY OFGOODS OR SUPPLY OF SERVICES

1. Transfer

(a) any transfer of the title in goods is a supplyof goods;

(b) any transfer of right in goods or ofundivided share in goods without the transfer oftitle thereof, is a supply of services;

(c) any transfer of title in goods under anagreement which stipulates that property in goodsshall pass at a future date upon payment of fullconsideration as agreed, is a supply of goods.

2. Land and Building

(a) any lease, tenancy, easement, licence tooccupy land is a supply of services;

(b) any lease or letting out of the buildingincluding a commercial, industrial or residentialcomplex for business or commerce, eitherwholly or partly, is a supply of services.

3. Treatment or process

Any treatment or process which is applied toanother person's goods is a supply of services.


4. Transfer of business assets

(a) where goods forming part of the assets ofa business are transferred or disposed of by orunder the directions of the person carrying on thebusiness so as no longer to form part of thoseassets, whether or not for a consideration, suchtransfer or disposal is a supply of goods by theperson;

(b) where, by or under the direction of aperson carrying on a business, goods held or usedfor the purposes of the business are put to anyprivate use or are used, or made available to anyperson for use, for any purpose other than apurpose of the business, whether or not for aconsideration, the usage or making available ofsuch goods is a supply of services;

(c) where any person ceases to be a taxableperson, any goods forming part of the assets ofany business carried on by him shall be deemedto be supplied by him in the course orfurtherance of his business immediately beforehe ceases to be a taxable person, unless—

(i) the business is transferred as a goingconcern to another person; or

(ii) the business is carried on by a personalrepresentative who is deemed to be a taxableperson.

5. Supply of services

The following shall be treated as supply ofservices, namely:-

(a) renting of immovable property;

(b) construction of a complex, building, civilstructure or a part thereof, including a complex


or building intended for sale to a buyer, whollyor partly, except where the entire considerationhas been received after issuance of completioncertificate, where required, by the competentauthority or after its first occupation, whicheveris earlier.

Explanation.—For the purposes of this clause—

(1) the expression "competent authority"means the Government or any authorityauthorised to issue completion certificate underany law for the time being in force and in caseof non-requirement of such certificate from suchauthority, from any of the following, namely:-

(i) an architect registered with the Councilof Architecture constituted under theArchitects Act, 1972; or

(ii) a chartered engineer registered withthe Institution of Engineers (India); or

(iii) a licensed surveyor of therespective local body of the city or town orvillage or development or planning authority;

(2) the expression "construction" includesadditions, alterations, replacements or remodelingof any existing civil structure;

(c) temporary transfer or permitting the use orenjoyment 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 froman act, or to tolerate an act or a situation, or todo an act; and



(f) transfer of the right to use any goods forany purpose (whether or not for a specifiedperiod) for cash, deferred payment or othervaluable consideration.

6. Composite supply

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

(a) works contract as defined in clause (119) ofsection 2; and

(b) supply, by way of or as part of any serviceor in any other manner whatsoever, of goods,being food or any other article for humanconsumption or any drink (other than alcoholicliquor for human consumption), where suchsupply or service is for cash, deferred paymentor other valuable consideration.

7. Supply of Goods

The following shall be treated as supply ofgoods, namely:-

Supply of goods by any unincorporatedassociation or body of persons to a memberthereof for cash, deferred payment or othervaluable consideration.

SCHEDULE III

[See section 7]

ACTIVITIES OR TRANSACTIONS WHICH SHALL BETREATED NEITHER AS A SUPPLY OF GOODS NOR

A SUPPLY OF SERVICES

1. Services by an employee to the employer inthe course of or in relation to his employment.


2. Services by any court or Tribunal establishedunder any law for the time being in force.

3.(a) the functions performed by the Membersof Parliament, Members of State Legislature,Members of Panchayats, Members of Municipalitiesand Members of other local authorities;

(b) the duties performed by any person whoholds any post in pursuance of the provisions ofthe Constitution in that capacity; or

(c) the duties performed by any person as aChairperson or a Member or a Director in a bodyestablished by the Central Government or a StateGovernment or local authority and who is notdeemed as an employee before the commencementof this clause.

4. Services of funeral, burial, crematorium ormortuary including transportation of the deceased.

5. Sale of land and, subject to clause (b) ofparagraph 5 of schedule II, sale of building.

6. Actionable claims, other than lottery, bettingand gambling.

Explanation.— For the purposes of paragraph 2,the term "court" includes District Court, High Courtand Supreme Court.

online publication at “http://styandptg.puducherry.gov.in”Government Central Press

Directorate of Stationery and PrintingPuducherry-605 009.

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