THE ARUNACHAL PRADESH GOODS AND SERVICES TAX ACT, 2017

73

THE ARUNACHAL PRADESH GOODS AND
SERVICES TAX ACI, 2OT7

(ACT. NO. 7 0F 2017)
( Received the Assent of Governor on l5th June, 20t 7

ond published in the Arunochol Prodesh E.O. Gozette
No. .l76 Vol. XXIV doted 24th June, 20I7)

An

Act
lo moke o provision for levy ond colleclion
of tax on intro-Stote supply of goods or
services or both by the Stote ofArunochol
Prodesh ond the motters connected
therewith or inci dento I thereto

BE it enacted by Legisloture of
Arunochol Pradesh in the Siw-eighth Yeor
of the Republic of lndio os follows:-

CHAPTER - I

PRELIMINARY

I . ( I ) This Act moy be colled the
Arunochol Prodesh Goods ond
Services Tox Act, 2017.

(2) lt extends to the whole of the
Arunochol Prodesh.

(3) lt sholl come into lorce on such
dote os the Stote Government
moy, by notificotion in the Officiol
Gozette, oppoint:

Provided thot different dotes moy be
oppointed for different provisions of this Act
ond ony reference in ony such provision to
the commencement oI this Act sholl be
construed os o reference to the coming into
force of thot provision.

2. ln this Act, unless the context other-
wise requires,-

(l ) "Actionoble cloim"sholl hove the
some meoning os ossigned to it
in section 3 of the Tronsfer of
Prope0 Act, 1882;

Short title,
extent
ond com-
mencement.

4 of 1882.

Definitions



t4

(2) "Address of delivery" meons the
oddress of the recipient of goods
or services or both indicoted on
the tox invoice issued by o
registered person for delivery of
such goods or services or both;

(3) iAddress on record" meons the
oddress of the recipient os
ovoiloble in the records of the
supplier;

(4) ?diudicoting outhority" meons
ony outhority, oppointed or
outhorised to poss ony order or
decision under this Act, but does
not include the Commissioner,
Revisionol Authority, theAuthority
forAdvonce Ruling, the Appellote
Authority forAdvonce Ruling, lhe
Appellote Authority ond the
Appellote Tribunol;

(5) ',Agent" meons o person,
including o foctor, broker,
commission ogent, orhotio, del
credere ogenl, on ouctioneer or
ony other mercontile ogent, by
whotever nome colled, who conies
on the business o{ supply or
receipt of goods or services or
both on beholf of onother;

(6) ?ggregote turnover"meons the
oggregote volue of oll toxoble
supplies (excluding the volue of
inword supplies on which tox is
poyoble by o person on reverse
chorge bosis), exempt supplies,
exports of goods or services or
both ond inter-Stote supplies of
persons hoving the some
Permonent Account Number, to
be computed on oll lndio bosis but
excludes centrol tox, Stote tox,
Union territory tox, integroted tox
ond cess;



43 of 1961 .

75

(7) iAgriculturisf'meonsonindividuol
or o Hindu Undivided Fomily who
undertokes cultivotion of lon4-
(o) by own lobour, or
(b) by the lobour of fomily, or

(c) by servonts on woges poy-
oble in cosh or kind or by
hired lobour under personol
supervision or the personol
supervision of ony member
of the lomily;

(8) ?ppellote Authority" meons on
quthority oppointed or oulhorised
to heor oppeols os referred to in
sedion 107;

(9) 'Appellote Tribunol' meons the
Goods ond SeMces To;( Appellote
Tribunol refened to in sedion I09;

(10) ?ppointed doy 'lneons the dote
on which the provisions of this Aa
sholl come into force;

(1 I ) "Assessment"meons determino-
tion of tox liobility under this Act
ond includes selfossessment, re-
ossessment, provisionol ossess-
ment, summory ossessment ond
best judgement ossessment;

(12)'Associoted enterprises' sholl
hove the some meoning os os-
signed to it in section 92A of the
lncome-tox Ad, 1961;

(l 3) ?udit"meons the exominotion of
records, returns ond other
documents mointoined or
fumished by the registered person
under this Act or the rules mode
frereunderor under ony other low
for the time being in force to verify
the correctness of turnover-
declored, toxes poid, refund



76

cloimed ond input tox credit
ovoiled, ond to ossess his
complionce with the provisions ol
this Act or the rules mode
trereunder;

(14) 'Authorised bonk"sholl meon o
bonk or o bronch of o bonk
outhorised by the Centrol
Government to collect the tox or
ony other omount poyoble under
this Act

( I 5) 'Authorised representotive"
meons the representotive os
referred to under section I l6;

(16) tsoord"meons $e CenrolBoord
of Excise ond Customs
constituted under the Centrol
Boords of Revenue Act, 1963;

(l 7) tsusiness"includes--
(o) ony trode, commerce,

monufocture,profession,
vocotion, odventure, woger
or ony other similor octivity,
whether or not it is for o
pecuniory benefi[

(b) ony octivity or tronsoction in

connection with or incidentol
or oncillory to sub-clouse (o);

(c) ony octivity or tronsoction
in the noture oI sub-clouse
(o), whether or not there is
volume, frequency, conti-
nuity or regulority of such
tronsodion;

(d) supply or ocquisition of
goods including copitol
goods ond services in
connection with commence-
mentor closure of business;

54 of 1963.



n
(e) provision by o club,

ossociotion, society, or ony
such body (for o subscription
or ony other considerotion)
of the focilities or benefits to
its members;

(0 odmission, for o considero-
tion, of persons to ony
premises;

(g) services supplied by o
person os the holder of on
office which hos been
occepted by him in the
course or furtheronce of his
trode, profession or vocotion;

(h) services provided by o roce
club by woy of totolisotor or
o licence to book moker in
such club; ond

(i) ony odivity or tronsoction
undertoken by the Centrol
Gorernmeflt o 9sE GovenF
ment or ony locol outhority
in which they ore engoged
os public outhorities;

( I 8) 'tsusiness verticol" meons o
distinguishoble component of on
enterprise thol is engoged in the
supply of individuol goods or
services or o group oI reloted
goods or serviceswhich is subiect
to risks ond returns thot ore
different lrom those of the other
business verticols.

Explonalion.-For Ihe purposes of
this clouse, foctors hot should be
considered in determining whelher
goods or services ore
reloted include--
(o) the noture of the goods or

services;



7t
(b) the noture of the produaion

processes;

(c) the type or closs of
customers for the goods or
seMces;

(d) the methods used to
distribute the goods or
suppty ol services; ond

(e) lhe noture of regulotory
environment (wteraner opdi-
coble), including bonking,
insuronce or public utilities;

( I9) fophol goods" meons goods, lhe
volue of which is copitolised in the
books of occount ol the person
cloiming the input tox credit ond
which ore used or intended to be
used in the course or furtheronce
of business;

(20) tosuol toxoble person"meons o
person who occosionolly
undertokes tronsoaions involving
supply of goods or services or both
in the course or furtheronce of
business, whether os principol,
ogent or in ony other copocity, in
the toxoble territory where he hos
no fixed ploce of business;

(21) tentrol tox" meons the Centrol
qoods ond Services tox levied
under section 9 of the Centrol
Goods ond Services Tox Act;

(22) "Cess" sholl hove the some
meoning os ossigned to it in the
Goods ond Services Tox
(Compensotion to Stotes) Act;

(23) ,Chortered occountont" meons o
chortered occountont os defined
in clouse (b) of sub-section (l ) of
section 2 of the Chortered
Accountonts Act, 1949;

38 of 1949



(24)

(2s)

(26)

(27)

(28)

(2e)

(30)

79

"Commissioner" meons the
Commissioner of Stote tox
oppointed under section 3 ond
includes the ftincipol Commissio-
ner or Chief Commissioner;

tommissioner in the Boord"
meons the Commissioner refened
to in section 158 of the Centrol
Goods ond Services Tox Ad;
"Common portol' meons the
common goods ond services tox
electronic portol referred to in
section 146;

tommon working doys" sholl
meon such doys in succession
which ore not declored os
Gozetted holidoys by the Centrol
Govemment or fie Govemment of
Arunochol Prodesh;

'Compony secretory' meons o
compony secretory os defined in

clouse (c) of sub-section (l) of
section 2 of the Compony
Secretories Ad, I 980;

tompetent outhority" meons such
outhority os moy be notified by the
Governmeng

tomposite supply" meons o
supply mode by o toxoble person

to o recipient consisting of two or
more toxoble supplies ofgoods or
services or both, or ony combino-
tion thereof, which ore noturolly
bundled ond supplied in
coniundion witfr eoch other in the
ordinory course of business, one
of which is o principol supply;

56 of 1980.



EO

lllustrotion: Where goods ore pocked

ond tronsported with insuronce, the
supply of goods, pocking moteriols,
tronsport ond insuronce is o composite
supply ond supply of goods is o
principol supply.

(31) tonsiderotion" in relotion to the
supply of goods or services or both
includer-
(o) ony poyment mode or to be

mode, whether in money or
othenaise, in resped of, in
response to, or for the
inducement of, the supply of
goods or services or both,
whether by the recipient or
by ony other person but sholl
not irrclude orry subsirJy given

by the CentdGwemment or
o Sffie Govemment

(b) he monehry volue of ony oct
or forbeoronce, in respect of,

in response to, or for the
inducement ol tre supply of
goods or services or both,
whether by the recipient or
by ony other person but sholl

rrct include orry subsidy given

by the Cenrol Goremment or
o Sffie Govemment:

Provided hat o deposit given in

respect of the supply of goods or
services or botr sholl not be consirJered

os poyment mode for such supply
unless the supplier opplies such
deposit os considerotion for the soid
supply;



23 ol 1959.

8l

(32) tontinuous supply of goods"
meons o supply of goodswhich is
provided, or ogreed to be provided,
continuously or on recunent bosis,
under o controd, whether or not
by meons of o wire, coble, pipeline
or other conduit, ond for which ttre
supplier invoices the recipient on
o regulor or periodic bosis ond
includes supply of such qoods os
the Government moy, subjea to
such conditions, os it moy, by
notificotion, specify;

(33) tontinuous supply of services"
meons o supply of services which
is provided, or ogreed to be
provided, continuously or on
recurrent bosis, under o controct,
for o period exceeding three
months with periodic poyment
obligotions ond includes supply of
such services os the Government
moy, subied to such conditions,
os it moy, by notificotion, specify;

(34) tonveyonce"includes o vessel, on
oircrqft ond o vehicle;

(35) tost occountont" meons o cost
occountont os defined in clouse
(c) oI sub-section (l ) of sedion 2
of the Cost ond Works
Accountonts Ad, 1959;

(36) touncil" meons the Goods ond
Services Tox Council estoblished
under orticle 279A of the
Constitution;

(37) tredit note" meons o document
issued by o registered person
under sub.section (l ) of section
34;



2l of 2000

t2

(38) Debit note" meons o document
issued by o registered person
under sub.section (3) of section
34;

(39) Deemed exports" meons such
supplies of goods os moy be
notified under section 147;

(rl0) Designoted outrority" meons such
ouhority os moy be notified by the
Commissioner;

(41) Document" includes written or
printed record of ony sort ond
electronic record os defined in
clouse (t) of section 2 of the
lnlormstion Technology Act, 2000;

(42) Drqwbock"in relotion to ony goods
monufoctured in lndio ond
exported, meons the rebote of
duty, tox or cess chorgeoble on
ony imported inputs or on ony
domestic inputs or input services
used in the monufocture of such
goods;

(43) "electronic cosh ledger"meons the
electronic cosh ledger relerred to
in sub-sedion (1) of sedion 49;

(zl4) "electronic commerce"meons the
supply of goods or services or
boh, including digitol products over
digitol or electronic network;

(45) "electronic commerce operotor"
meons ony person who owns,
operotes or monoges digitol or
electronic focility or plotform for
eledronic commerce;

(46) "eleckonic credit ledger" meons
the electonic credit ledger refuned
to in subsection (2) of section 49;



83

(47) 'exempt supply"meons supply of
ony goods or services or both
which ottrocts nil rote of tox or
which moy be wholly exempt from
tox under section ll, or under
section 6 ofthe lntegroted Goods
ond S€rvices Tox Actr ond includes
non-toxoble supply;

(48) 'existing low" meons ony low
nolificotion, order, rule or regukrtion
reloting to levy ond colledion oI
duty or tox on goods or services
or bottr possed or mode before he
commencement of this Act by the
Legisloture or ony Authority or
person hoving the power to moke
such low notificotion, order, rule
or regulotion;

(49) 'Iomily"meons,-

(i) the spouse ond children of
the person, ond

(ii) the porents, grond-porents,
brothers ond sisters ol the
person if they ore wholly or
moinly dependent on the
soid person;

(50) Tixed estoblishment" meons o
ploce (other thon the registered
ploce of business) which is
chorocterised by o suff icient
degree of permonence ond
suitoble structure in terms of
humon ond technicol resources to
supply services, or to receive ond
use services for its own needs;

(51) Tund" meons the Consumer
Welfore Fund estoblished under
section 57;



80 of I 976

(s2)

(s 3)

(il)

(ss)

(s6)

(s7)

(s8)

81

"goods" meons every kind of
movoble property other thon
money ond securities but includes
octionoble cloim, growing crops,
gross ond things ottoched to or
forming port of the lond which ore
ogreed to be -vered before supply
or under o controd of supply;

"Government" meons the
&vemmenl ol Aru m dnl h&sh;

'Goods ond Services Tox (Compen
sotion to Stotes) Ad" meons the
Goods ond Services Tox
(Compensotion to Stotes) Act,
2017;

"goods ond services tox
proctitioner' meons ony person
who hos been opproved under
section 48 to oct os such
proctitioner;

'lndio' meons the tenitory of lndio
os referred to in orticle I o{ the
Constitution, its territoriol woters,
seobed ond sub-soil underlying
such woters, continentol shelf,
exclusive economic zone or ony
other moritime zone os referrd to
in the Terriloriol Woters,
Continentol Shelf , Exclusive
Economic Zone ond otrer lv,loritime
ZonesAc! 1976, ond fre oir spoce
obove its territory ond territoriol
woters;

'lntegroted Goods ond Services
Tox Act" meons the lntegroted
Goods ond Services Tox Act,
2017;

"integroted tox" meons the
integroted goods ond services tox
levied under the lntegroted Goods
ond Services Tox AcU



85

(59) lnput"n€ons ony goods other thon
copitol goods used or intendd to
be used by o supplier in the
course or furtreronce of business;

(60) lnput service"meons ony service
used or intended to be used by o
supplier in the course or
furtheronce of business;

(61 ) lnput Service Distributor"meons
on office of the supplier ol goods
or services or bott which receives
tox invoices issued under section
3l towords the receipt of input
services ond issues o prescribed
document for the purposes of
distributing the credit of centrol
tox, Stote tox, integroted tox or
Union tenitory tox poid onthe soid
services to o supplier of toxoble
goods or services or both hoving
the some Permonent Account
Number os thot ofthe soid office;

(62) lnput bx"in relotjon to o registered
person, meons the centrol tox,
Stote tox, inlegroted tox or Union
tenitory tox chorged on ony supply
of goods or services or both mode
to him ond includes-

(o) the integroted goods ond
services tox chorged on
import of goods;

(b) the tox poyoble under the
provisions of sub-sections
(3) ond (4) oI section 9;

(c) the tox poyoble under the
provisions of sub-sections
(3) ond (4) of section 5 of
the lntegroted Goods ond
Services Tox AcL or



86

(d) the tox poyoble under the
provisions of sub-sedions
(3) ond (4) of section 9 of he
CentalGds and Servkes
Tox Act,

but does not include the tox poid
under the composition le!ry;

(53) lnput tox credit"meons the credit
of input tox;

(64) '1ntro-Stote supply of goods" sholl
hove the some meoning os
ossigned to it in section 8 of the
lnEgmEd Goods ond Services Tox

Acu

(65) 'lntro-Stote supply of services"
sholl hove the some meoning os
ossigned to it in section 8 of the
lntegroEd Goods ond Services Tq
Act;

(66) 'lnvoice"or tox invoice"meons tre
tox invoice referred to in section
31

(67) "inword supply" in relotion to o
person, sholl meon receipt of
goods or services or boh whether
by purchose, ocquisition or ony
other meons, with or without
considerotion;

(68) lob work"meons ony treotment or
process undertoken by o person
on goods belonging to onother
registered person ond the
expression 'lob worker" sholl be
construed occordingly;

(69) locol outhority"meons-
(o) o ?onchoyot"os defined in

douse (d) of ortide 243 of fie
Constitution;



41 o12006.

t7
(b) o Trrlunicipolity'os defined in

clouse (e) ol orticle 243P o(
the Constitution;

(c) o Municipol Committee, o
Zillo Porishod, o District
Boord, ond ony other
outhority legolly entided to,
or entrusted by the Centrol
Government or ony Stote
Govemment with the control
or mcnogement of o
municipol or locolfund;

(d) o Contonment Boord os
defined in section 3 of the
Contonments Act, 2006;

(e) o Regionol Council or o
District Council constituted
under the Sixth Schedule to
the Constitution;

(f) o Development Boord
constituted under orticle 371
of the Constitution; or

(g) o Regionol Council consti
tuted under orticle 37lA of
the Constitution;

(70) locotion of the recipient of services"
meons,-

(o) where o supply is received ot
o ploce of business forwhich
the registrotion hos been
obloined, he locotion of such
ploce of business;

(b) where o supply is received ot
o ploce other thon the ploce
of business for which
registrotion hos been
obtoaned (o fixed estoblish-

, ment elsewhere), the
!ocotion of such f ixed
estcblishment;



8E

(c) where o supply is received ot
more thon one estoblish-
ment, whether the ploce of
business or fixed estoblish-
ment, the locotion of the
estoblishment most directly
concerned with tre receipt of
the supply; ond

(d) in obsence of such ploces,
the locotion of the usuol
ploce of residence of the
recipient;

(7I) 'locotion of the supplier of services"
meons,-

(o) where o supply is mode from
o ploce ol business forwhich
the registrotion hos been
obtoined, the locotion of
such ploce of business;

(b) where o supply is mode from
o ploce other thon the ploce
of business for which
registrotion hos been
obtoined (o fixed estoblish-
ment elsewhere), the
locotion of such f ixed
estoblishmenL

(c) where o supply is mode from
more thon one estoblish-
ment, whether the ploce of
business or fixed estoblish-
ment, the locotion ol the
estqblishment most directly
concerned with the
provisions of the supply; ond

(d) in obsence of such ploces,
the locotion oi the usuol
ploce oI residence of the
supplier;



89

(72)'?nonufocture"meons processing
of row moteriol or inputs in ony
monner drot results in emergence
ofo new produd hoving o distinct
nome, chorocter ond use ond the
term "monufocturer" sholl be
construed occordingly;

(73) '?norket volue" sholl meon the full
omountwhich o recipient ofo suP
ply is required to poy in order to
obtoin the goods or services or
both of like kind ond quolity ot or
obout the some time ond ot the
some commerciol level where the
recipient ond the supplier ore not
reloted;

(74) 'tnixed supply"meons two or more
individuol supplies of goods or
services, or ony combinotion
thereof, mode in conjunction with
eoch other by o toxoble person
for o single price where such
supply does not constitute o
composite supply.

lllustrotion: A supply of o
pockoge consisting of conned
foods, sweets, chocolotes, cokes,
dry fruits, oeroted drinks ond fruit
juices when supplied for o single
price is o mixed supply. Eoch oI
these items con be supplied
seporolely ond is not dependent
on ony other. lt sholl not be o
mixed supply if these items ore
supplied seporotely;

(75) "money" meons the lndion legol
tender or ony foreign currency,
cheque, promissory note, bill of
exchonge, letter of credit, droft,
poy ordet toveller cheque, money
order, postol or electronic



59 of 1988

90

remittonce or ony olher instrument
recognized by the Reserve Bonk
of lndio when used os o
considerotion to setlle on
obl(lotion or exchonge wih lndion
legol tender of onother
denominotion but sholl not include
ony currenry thot is held for its
numismotic volue;

(76) 'tnotor vehicle"sholl hove the some
meoning os ossigned to it in
clouse (28) of seclion 2 of the
Motor Vehicles Act, 1988;

(77) "non-resident toxoble person"
meons ony person who
occosionolly undertokes
tronsodions involving supply of
goods or services or botr, whefier
os principol or ogent or in ony
other copocity, but who hos no
fixed ploce of business or
residence in lndio;

(78) 'hon-toxoble supply" meons o
supply of goods or seMces or botr
which is not levioble to tox under
this Ad or under the lntegroted
Goods ond Services Tox Ad;

(79) hon{oxoble territory" meons the
territory which is outside the
toxoble territory;

(80) "notificotion" meons o notificotion
published in the Officiol Gozette
ond the expressions 'notify' ond
' notif ied' sholl be construed
occordingly;

(81) bther territory" includes territories
other thon those comprising in
o Stote ond those referred to in
sub-clouses (o) to (e) of clouse
(1r4);



l8 of 201 3.

9r

(82) "output tox"in relotion to o toxoble
person, meons the tox chorgeoble
under this Act on toxoble supply
of goods or services or bob mode
by him or by his ogent but ex-
cludes tox poyoble by him on re
verse chorge bosis;

(83) "outword supply" in relotion to o
toxoble person, meons supply of
goods or services or botr, whether
by sole, ronsler, borter, exchonge,
licence, rentol, leose or disposol
or ony other mode, mode or
ogreed to be mode by such per-
son in the course or furtheronce
of business;

(84) ?erson"includes-
(o) on individuol;

(b) o Hindu Undivided Fomily;

(c) o compony;

(d) o firm;

(e) o Limited Li:bility Porhership;

(0 on ossociotion of persons or
o body of ind ivid uo ls,
whether incorporoted or not,
in lndio or outside lndio;

(g) ony corporotion estoblished
by or under ony CentrolAct,
Stote Ad or ProvinciolAct or
o Government compony os
defined in clouse (45) of
section 2 of the Componies
Act, 2013;

(h) ony body corporote incor-
poroted by or under the lows
of o country outside lndio;



2'l of I 860.

92

(i) o co-operotive society
registered under ony low
reloting to co-operotive
societies;

0 o locolouthority;

(k) Cenkol Government or o
Shte Government;

(l) society os defined underthe
SocietiesRegistrotion Act,
1860;

(m) trust; ond

(n) every ortif iciol juridicol
person, notfolling within ony
of the obove;

(85) 'Floce of business" includes-
(o) o ploce from where the

business is ordinorily corried
on, ond includes o
worehouse, o godown or ony
other ploce where o toxoble
person stores his goods,
supplies or receives goods or
services or bolh; or

(b) o ploce where o toxoble
person mointoins his books
of occount or

(c) o ploce where o toxoble
person is engoged in
business through on ogent,
by whotever nome colled;

(86) 'Floce of supply" meons the ploce
of supply os refened to in Chopter
V of the lntegroted Goods ond
Services Tox Act;

(87) hrescribed" meons prescribed by
rules mode under this Act on the
recommendotions oI the Council;



(88) lrincipol" meons o person on
whose beholf on ogent corries on
the business of supply or receipt
of goods or services or both;

(89) "principol ploce of business"
meons the ploce oI business
specified os the principol ploce of
business in the certificote of
regisfoton;

(90)'principol supply"meons the supply
of goods or services which
constitutes the predominont
element of o composite supply
ond to which ony other supply
forming port of thot composite
supply is oncillory;

(91) 'Froper officer" in relotion to ony
function b be performed under fris
Act, meons the Commissioner or
the officer of the Stote tox who is
ossigned thot Iunction by the
Commissioner;

(92) tuorter" sholl meon o period
comprising three consecutive
colendor months, ending on the
lost doy of Morch, June,
September ond December ol o
colendoryeor;

(93) 'iecipient" o, supply of goods or
services or both, meons-
(o) where o considerotion is

poyoble for the supply of
goods or seMces or botr, he
person who is lioble to poy
thol considerotion;

(b) where no considerotion is
poyoble for the supply of
goods, the person to whom
the goods ore delivered or
mode ovoiloble, or to whom
possession or use of the
goods is given or mode
ovoiloble; ond



(c) where no considerotion is
poyoble for the supply of o
service, tte person to whom
the servke is rendered,

ond ony rebrerre to o person

to whom o supply is mode
sholl be construed os o
relerence to fre recipient of
the supply ond sholl include
on ogent oding os such on
beholf oI the recipienl in
relotion to the goods or
seMces or bofr supplied;

(94) "registered person" meons o
person who is registered under
seaion 25 but does not include o
person hoving o Unique ldentity
Number.

(95) tegukrtions"meons the regukrtions
mode by the Government undet
thisAct on the recommendotions
of the Council;

(96) "removol" in relotion to goods,
meons-

(o) despotch of the goods lor
delivery by the supplier
thereof or by ony other
person octing on beholf of
such supplier; or

(b) collection of the goods by $e
recipient thereof or by ony
olher person octing on beholf
of such recipient;

(97) "return" meons ony return
prescribed or otherurise required
to be furnished by or under this
Act or the rules mode thereunder;



(98) twerse chorge" nreons tre liobility
to poy tox by the recipient of
suppt of gpods or seMces or botr
insteod oI the supplier of such
goods or services or both under
subsection (3) or sub-seaion (4)
ol section 9,or under sub-section
(3) or sub-section (4) of seaion 5
of the lntegroted Goods ond
Services Tox Ad;

(99) Revisionol Authority" meons on
outhority oppointed or outhorised
for revision of decision or orders
os referred to in sedion 108;

(100) lSchedule' meons o Schedule
oppended to this Ad

(l0l) "securities" sholl hove the some
meoning os ossigned to it in
clouse (h) of section 2 of the
Securities Controcts (Regulotion)
Act, 1955;

( I 02) "services" meons onything other
thon goods, money ond securities
but includes odivities reloting to
he use of money or its conversion
by cosh or by ony other mode,
from one form, currency or
denominotion, to onother form,
cunency or denominolion for uhkh
o seporote considerotion is
chorged;

(I03) "Stote" meons the Stote oI
Arunochol Prodesh ;

( 104) 'Stote tox" meons the tox levied
under this Act

(105) "supplier"in relotion to ony goods
or services or botr, sholl meon dre
person supplying the soid goods
or services or both ond sholl
include on ogent octing os such
on beholf of such supplier in
relotion to the goods or services
or both supplied;

42 of 1956.



96

( 106) tox period" meons the period for
which the return is required to be
furnished;

(107) toxoble person"meons o person
who is registered or lioble to be
registered under section 22 or
section 24;

(108) loxoble supply'' meons o supply
of goods or services or both which
is levioble to tox under this Ad;

(109) loxoble territory" meons the
tenitory to which the provisions of
this Act opply;

( I I 0) lelecommunicotion seMce"meons
service of ony description
(including electronic moil, voice
moil, doto services, oudio text
seMces, video text services, rodio
poging ond cellulor mobile
telephone services) which is mode
ovoiloble to users by meons of
ony tronsmission or reception of
signs, signols, writing, imoges
ond sounds or intelligence of ony
noture, by wire, rodio, visuol or
other electromognetic meons;

(l I I ) the Centrol Goods ond Services
Tox Act" meons he CentolGoods
ond Services Tox Act, 201 7;

(112) 'turnover in Stote"or lurnover in
Union territory" meons the
oggregote volue of oll toxoble
supplies (excluding the volue of
inword supplies on which tox is
poyoble by o person on reverse
chorge bosis) ond exempt
supplies mode within o Stote or
Union territory by o toxoble



t25

(d) goods or services or both
received by o toxoble person

for construction of on
immovoble property (other

thon plont or mochinery) on
his own occount including
when such goods or services
or both ore used in the
course or furtheronce of
business.

Explonotion.-F or the purposes
of clouses (c) ond (d), the expression
"con struction "includes recon-
struction, renovotion, odditions or
olterotions or repoirs, to the extent
of copitolisotion, to the soid
immovoble property;

(e) goods or services or both on
which tox hos been poid
under sedion l0;

(f) goods or services or both
received by o non-resident
toxoble person except on
goods imported by him;

(g) goods or services or both
used for personol
consumption;

(h) goods lost, stolen,
destroyed, written off or
disposed ol by woy ol gift or
free somples; ond

(i) ony tox poid in occordonce
with the provisions of
sections 74, 129 ond I 3l

(5r fhe Government mqy prescril:c
the monner in which the credit

'eferred to in sub-sections (1) ond
(2) moy be nttribr rted.



126

Explonation.- For tre purposes
of this Chopter ond Chopter Vl, the
expression ?lonl ond mochinery"
meons opporotus, equipment, ond
mochinery fixed to eorth by foundotion
or structurol support *rot ore used for
moking outword supply of goods or
services or both ond includes such
foundotion ond stucturol supports but
excludes-

(i) lond, building or onyother civil
structures;

(ii) telecommunicotion towers;
ond

(iii) pipelines loid outside the
loclory premises.

18. (l) Subject to such conditions ond
restrictions os moy be
prescribed-

(o) o person who hos opplied for
registrotion under this Act
within thirty doys from the
dote on which he becomes
lioble to registrotion ond hos
been gronted such regis-
trotion sholl be entitled to
toke credit of input tox in
respect of inputs held in
stock ond inputs contoined
in semifinished or finished
goods held in stock on the
doy immediotely preceding
the dote from which he
becomes lioble to poy tox
under the provisions of this
Act;

(b) o person who tokes
registrotion under sub-
section (3) ol section 25
sholl be entitled to toke
credit of input tox in respect

Avoilobility
of credit in
speciol
circum-
slonces.



127

ol inputs held in stock ond
inputs contoined in semi-
linished or linished goods
held in stock on the doy
immediotely preceding the
dote of gront of registrotion;

(c) where ony registered person
ceoses to poy tox under
section 10, he sholl be
entided to toke credit of input
tox in respect of inputs held
in stock, inputs contoined in
semi-finished or Iinished
goods held in stock ond on
copitol goods on the doy
immediotely preceding the
dote lrom which he becomes
lioble to poy tox under
section 9:

Provided thot the credit on
copitol goods sholl be reduced by
such percentoge points os moy be
prescribed;

(d) where on exempt supply of
goods or services or both by
o registered person be-
comes o toxoble supply,
such person sholl be entitled
to toke credit of input tox in
respect of inputs held in
stock ond inputs contoined
in semi-finished or finished
goods held in stock relotoble
to such exempt supply ond
on copitol goods exclusively
used {or such exempt supply
on the doy immediotelY
preceding the dote from
which such supply becomes
toxoble:



t28

Provided thot the credit on
copitol goods sholl be reduced by
such percentoge points os moy be
prescribed.

(2) A registered person sholl not be
entitled to toke input tox credit
under sub-section (l) in respect
of ony supply of goods or services
or both to him olter the expiry of
one yeor from the dote of issue oI
hx invoice relsting to such supply.

(3) Where there is o chonge in the
constitution of o registered person

on occount of sole, merger,
demerger, omolgomqtion, leose or
tronsfer of the business with the
specific provisions of tronsfer of
liobilities, the soid registered
person sholl be ollowed to ronsfer
the inputtox credit which remoins
unutilised in his electronic credit
ledger to such sold, merged,
demerged, omolgomoted, leosed
or tronsferred business in such
monner os moy be prescribed.

(4) Where ony registered person who
hos ovoiled ofinputtox creditopts
to poy tox under sedion 10 or,

where the goods or services or
both supplied by him become
wholly exempt, he sholl poy on
omount, by woy of debit in the
electronic credit ledger or
electronic cosh ledger, equivolent
to the credit of inputtox in respect
of inputs held in stock ond inputs
contoined in semi-finished or
finished goods held in stock ond
on copitolgoods, reduced by such



t29

percentoge points os moy be
prescribed, on the doy imme-
diotely preceding the dote of
exercising ol such option or, os
the cose moy be, the dote of such
exemption:

Provided thot ofter poyment of
such omount, the bolonce of input
tox credit, if ony, lying in his electronic
credit ledger sholl lopse.

(5) The omount of credit under sub-
section ('l ) ond the omount
poyoble under sub-section (4)
sholl be colculoted in such
monner os moy be prescribed.

(5) ln cose of supply of copitol goods
or plont ond mochinery. on which
input tox credit hos been token,
the registered person sholl poy on
omount equol to the input tox
credit token on the soid copitol
goods or plont ond mochinery
reduced by such percentoge
points os moy be prescribed or
the lox on the tronsoction volue
of such copitol goods or plont ond
mochinery determined under
section 15, whichever is higher:

Provided thot where refroctory
bricks, moulds ond dies, jigs ond
fixtures ore supplied os scrop, the
toxoble person moy poy tox on the
tronsoction volue of such goods
determined under section 15.

19. (l) The principolsholl, subject to such
conditions ond restridions os moy
be prescribed, be ollowed input
tox credit on inputs sent to o job
worker {or job work.

Toking input
tox credit in
respect ot
inputs ond
copitol
goods sent
for job work.



130

(2) Notwithstonding onything contoi-
ned in clouse (b) of sub-section
(2) of seaion 16, the principolsholl
be entitled to toke credit of ;nput
tox on inputs even if the inputs ore
directly sent to o lob worker for
job work wifrout being first brought
to his ploce of business.

(3) Where fre inputs sent for job work
ore not received bock by the
principol ofter completion of job
work or otherwise or ore not
supplied from the ploce o{
business of the job worker in
occordonce with clouse (o) or
clouse (b) o{ sub-section (l) of
section 143 within one yeor of
being sentout, it sholl be deemed
thot such inputs hod been
supplied by the principolto the job
worker on the doy when the soid
inputs were sent out:

Provided thot where the inputs
ore sent directly to o job worker, the
period of one yeor sholl be counted
from the dote of receipt of inputs by
the iob worker.

(4) The principol sholl, subject to
such conditions ond restrlctions
os moy be prescribed, be ollowed
input tox credit on copitol goods
sent to o iob worker for job work.

(5) Notwithstonding onything con-
toined in clouse (b) ofsub-sedion
(2)of section 15, the principolsholl
be entitled to toke credit ol input
tox on copitol goods even if the
copitol goods ore directly sent to
o job worker for job worker without
being first brought to his ploce of
business.



l3l

(6) Where the copitol goods sent for
job work ore not received bock by
he pdncipol wihin o period oI firee
yeors of being sent out, it sholl
be deemed thot such copitol
goods hod been supplied by the
principol to the job worker on the
doy when the soid copitol goods
were sent out:

Provided thot where the copitol
goods ore sent directly to o job-
worker, fie period of three yeors sholl
be counted from the dote of receipt
of copitol goods by the job worker.

(7) Nothing contoined in sub.section
(3) or sub-section (6) sholl opply
to moulds ond dies, iigs ond
fixtures, or tools sent out to o job
worker forjob work.

Explonotion - Fot lhe purpose ofthis
seaion,'principol"meons the person
relerred to in section '143.

20. (l ) The lnput Service Distribulor sholl
distribute the credit of Stote tox
os Stote toxor integroted tox ond
integroted tox os integroted tox or
Stote tox, by woy of issue of
document contoining the omount
of input tox credit being distributed
in such monner os moy be
prescribed.

(2) The lnput Service Distributor moy
distribute the credit subied to the
Iollowing conditions, nomely:--
(o) the credit con be distributed

to the recipients of credit
ogoinst o document con-
toining such detoils os moy
be prescribed;

Monner of
distribution
of credit
by lnput
Service
Distributor.



t32

(b) the omount oI the credit
distributed sholl not exceed
tre omount of credit ovoiloble
for distribution;

(c) the credit of tox poid on input
services ottributoble to o
recipient of credit sholl be
distributed only to thot
recipient;

(d) the credit of tox poid on input
services ottributoble to more
thon one recipient of credit
sholl be distributed omongst
such recipients to whom the
input service is ottributoble
ond such disribution sholl be
prc roto on the bosis of the
furnover in o Stote or tumover
in o Union territory of such
recipient, during the relevont
period, to the oggregote of
the turnover of oll such
recipients to whom such
input service is ottributoble
ond which ore operotionol in
the current yeor, durinq the
soid relevont period;

(e) the credit of tox poid on input
services ottributoble to oll
recipients of credit sholl be
distributed omongst such
recipients ond s uch
distribution sholl be pro rato
on the bosis of the turnover
in o Stote or turnover in o
Union territory of such
recipienl during the relevont
period, to the oggregote ol
the turnover of oll recipients
ond which ore operotionol in
the current yeor, during the
soid relevont period.



r33

Explonotion.-For the purposes ol
this sedion,--

(o) tre 'televont period"sholl be--
(i) i{ the recipients of credit hove

turnover in their Stotes or
Union territories in the
finonciol yeor preceding the
yeor during which credit is to
be dislributed, the soid
finonciol yeor; or

(ii) if some or oll recipients o{the
credit do not hove ony
turnover in their Stotes or
Union territories in the
finonciol yeor preceding the
yeor during which the credit
is to be distributed, the lost
quorter for which detoils of
such turnover of oll the
recipients ore ovoiloble,
previous to he monfr during
which credit is to be
distributed;

(b) the expression tecipient of credit"
meons the supplier oI goods or
services or both hoving the some
Permonenl Account Number os
thot o, the lnput Service
Distributor;

(c) the term turnover", in relotion to
ony registered person engoged in
the supply of toxoble goods os
well os goods not toxoble under
this Act, meons the volue of
turnover, reduced by the omount
of ony duty or tox levied under
entry 84 of List I of the Seventh
Schedule to the Constitution ond
entry 5l ond 54 of List ll o{ the
soid Schedule.



t31

21. Where the lnput Service Distributor
distributes the credit in controvention
of the provisions contoined in section
20 resulting in excess distribution o{
credit to one or more recipients o{
credit, the excess credit so distributed
sholl be recovered from such recipients
olong with interest, ond the provisions
of sedion 73 or section 74, os tre cose
moy be, sholl, mutotis mutandis, ap-
ply for determinotion of omount to be
recovered.

CHAPTER - VI

REGISTRATION

Every supplier moking o toxoble
supply of goods or seMces or both
in the Stote sholl be lioble to be
registered under this Act i, his
oggregote turnover in o {inonciol
yeor exceeds ten lokh rupees.

Every person who, on the doy
immediotely preceding the
oppointed doy, is registered or
holds o license under on existing
low shollbe liobleto be registered
under thisAct with effea from the
oppointed doy.

Where o business corried on by
o toxoble person registered under
thisAct is tronsferred, whether on
occount of succession or other-
wise, to onother person os o going
concern, the tronsferee or the
successot os the cose moy be,
sholl be lioble to be registered
with effect from the dote of such
tronsrer or succession.

Notwithstonding onything conto-
ined in sub-sections (l ) ond (3),
in o cose of tronsfer pursuont to
sonction of o scheme or on

Monner of
recovery of
credit
dislributed
in excess.

Persons
Iiable for
registrotion

22. (1)

(2)

(3)

(4)



t3,

orongemer{ for omolgomolion or,
os the cose moy be, de.merger
of two or more componies
pursuont to on order of o High
Court, Tribunol or otherwise, the
fonsferee sholl be lioble to be
registered, with effect lrom the
dote on which the Registror of
Componies issues o certificote of
incorporotion gMng eflect to such
order of he High Colrt or Tribunol.

Explanation.--For the purposes oI
this section,-

0 the expression "oggregote turn-
over" sholl include oll supplies
mode by the toxoble person,
whether on his own occount or
mode on beholf of oll his princi-
pols;

(ii) $e supply of goods, ofter comple.
tion of iob-work, by o registered
job worker sholl be treoted os the
supply of goods by the principol
referred to in sedion 143, ond the
volue of such goods sholl not be
included in te oggregote tumover
of the registered job worker;

(iii) theexpressiontpeciolcotegory
Stotes"sholl meon the Stotes os
specified in sub-clouse (9) of
clouse (4) of orticle 279A of the
Constitution.

23. (l ) Thefollowing persons shollnotbe
Iioble to registrotion, nomely:--
(o) ony person engoged

exclusively in the business
of supplying goods or
services or both thot ore not
lioble to tox or wholly exempt
from tox under this Act or
under the lntegroted Goods
ond Services Tox Act;

Persons nol
lioble for
registrotion.



t36

(b) on ogriculturist, to the extent
ol supply ol produce out of
cultivotion o{ lond.

(2) The Government moy, on the
recommendotions o{ the Council,
by notificotion, specify the
cotegory of persons who moy be
exempted from obtoining
registrotion under this Act.

24. Notwithstonding onything contoined in
sub-section (l) of section 22, the
following cotegories of persons sholl
be required to be registered under this
Act,-

(i) persons moking ony inter^Stote
toxoble supply;

(ii) cosuol toxoble persons moking
toxoble supply;

(iii) persons who ore required to poy
tox under reverse chorge;

(iv) person who ore required to poy
tox under sub-section (5) ol
section 9;

(v) non-resident toxoble persons
moking toxoble supply;

(vi) persons who ore required to deduct
tox under section 5'1, whether or
not seporotely registered under
this Act;

(vii) persons who moke toxoble supply
of goods or services or both on
beholf of other toxoble persons
whether os on ogent or otherwise;

(viii) lnput Service Distributot whether
or not seporotely registered under
this AcU

(ix) persons who supply goods or
services or both, other thon
supplies specified under sub-

Compulsory
registrotion
in certoin
coses.



t37

section (5) of section 9, through
such electronic commerce
operotor who is required to collect
tox ot source under section 52;

(x) every electronic commerce
operotor;

(xi) every person supplying online
informotion ond doto bose occess
or retrievol services lrom o ploce
outside lndio to o person in lndio,
other thon o registered person;
ond

(xii) such other person or closs of
' persons os moy be notified by the

Government on the recommen-
dotions ofthe Council.

25. (l) Every person who is lioble to be
registered under section 22 or
section 24 sholl opply for
registrotion within thirty doys from
the dote on which he becomes
lioble to registrotion, in such
monner ond subject to such
conditions as moy be prescribed:

Provided thot o cosuol toxoble
person or o non-resident toxoble
person sholl opply for registrotion ot
leost five doys prior to the commenc+
ment of business.

Explonotion.- Every person who
mokes o supply from the territoriol
woters of lndio sholl obtoin
registrotion in the Stote where the
neorest point of the oppropriote
boseline is locoted in the Stote.

(2) A person seeking registrotion un-
der this Act sholl be gronted o
single registrotion:

Procedure
for
registrotion.



43 ot 1961

t38

Proided thot o Person hoving
multiple business verlicols in the
Sffie nny be qonted o seryrote regi
istrotion for eoch business verticol,
subject to such conditions os moy
be prescribed.

(3) A person, though not lioble to be
registered under section 22or sec-
tion 24 moy get himself registered
voluntorily, ond oll provisions of
this Ad, os ore opplicoble to o
registered person, sholl opply to
such person.

(4) A person who hos obtoined or is
required to obtoin more thon one
registrotion, whether in one Stote
or Union territory or moretton one
Stote or Union territory sholl, in
respect of eoch such registrotion,
be treoted os distinct persons for
the purposes of this Act.

(5) Where o person who hos obtoined
or is required to obtoin registro-
tion in o Stote or Union territory in
respect of on estoblishment, hos
on estoblishment in onother Stote
or Union territory then such es-
toblishments sholl be treoted os
estoblishments of distinct per
sons for the purposes of this Act.

(6) Every person sholl hove o Permo-
nentAccount Number issued un-
der the lncome-tox Act, 1961 in
order to be eligiblefor grontof reg-
istrotion:

Provided thot o person required
to deduct tox under section 51 moy
hove, in lieu of o PermonentAccount
Number, o Tox Deduction ond Col-
lection Account Number issued un-
der the soid Act in order to be eli-
gible for gront of registrotion.



46 ol 1947

t39

(7) Notwithstonding onything con
toined in sub-section (6), o non-
resident toxoble person moy be
gronted registrotion under sub-
section (l) on the bosis of such
other documents os moy be
prescribed.

(8) Where o person who is lioble to
be registered under this Act foils
to obtoin registrotion, the proper
officer moy, without prejudice to
ony oction which moy be token
under thisA,ct or under ony other
low for the time being in force,
proceed to register such person
in such monner os moy be
prescribed.

(9) Notwithstonding onything
contoined in suUsection (l ),-
(o) ony speciolised ogency of

the United Notions Orgoni-
sotion or ony Multiloterol
Finonciol lnstitution ond
Orgonisotion notified under
tle United Notions (Privileges
ond lmmunities) Act, 1947,
Consulote or Embossy of
foreign countries; ond

(b) ony other person or closs of
persons, os moy be notified
by the Commissionel

sholl be gronted o Unique
ldentity Number in such
monner ond for su ch
purposes, including refund of
toxes on the notified supplies
of goods or services or both
received bythem, os moy be
prescribed.



140

(10) The registrotion or the Unique
ldentity Number sholl be gronted

or reieaed ofter due verificotion in

such monner ond within such
period os moy be prescribed.

(l I ) A certificote of registrotion sholl
be issued in such form ond with
effect from such dote os moy be
prescribed.

(12) A registrotion or o Unique ldentity
Number sholl be deemed to hove
been gronted ofter lhe expiry of
the period prescribed under sub-
section (10), iI no deliciency hos
been communicoted to the
opplicont within thot period.

26. (1) The gront of registrotion or the
Unique ldentity Number under tre
Centol Goods ond Services Tox

Act sholl be deemed to be o gront

of registrotion or the Unique
ldentity Number under this Act
subied lo the condition thot the
opplicotion for registrotion or the
Unique ldentity Number hos not
been rejeaed under this Act within
the time specified in sub-section
( l0) of sedion 25.

(2) Notwithstonding onything
contoined in sub-section (10) of
section 25, ony reiection of
opplicotion for registrotion or the
Unique ldentity Number underthe
Centrol Goods ond Services Tox
Act sholl be deemed to be o
reiection of opplicotion for
registrotion under this AcL

Deemed
registrotion



tll
27. ( l) The certificote of regisrqtion issued

to o cosuol toxoble person or o
non-resident toxoble person sholl
be volid for the period specified in
the opplicotion for registrotion or
ninety doys {rom the eflective dote
of registrotion, whichever is eorlier
ond such person sholl moke
toxoble supplies only ofter the
issuonce of the certificote of
registrotion:

Provided thot the proper oflicer
moy, on sufficientcouse being shown
by the soid toxoble person, extend
the soid period of ninety doys by o
further period not exceeding ninety
doys.

(2) A cosuoltoxoble person or o non-
resident toxoble person sholl, ot
the time of submission of
opplicotion for registrotion under
sub-section (l) of section 25,
moke on odvonce deposit of tox
in on omount equivolent to the
estimoted tox liobility o{ such
person for the period forwhich the
registrotion is sought:

Provided thot where ony extension of
time is sought under sub-sedion (l ),
such toxoble person sholldeposit on
odditionol omount of tox equivolent
to the estimoted tox liobility o{ such
person for the period for which the
extension is sought.

(3) The omountdeposited under sub-
section (2) sholl be credited to the
electronic cosh ledger of such
person ond sholl be utilised in the
monner provided under section 49.

Speciol
provisions
reloting to
cosuol
toxoble
person ond
non-resident
toxoble
person.



t12

28. (l) Every registered person ond o
person to wtrom o Unique ldentity
Number hos been ossigned sholl
inform the proper officer of ony
chonges in the informotion
furnished ot the time o{
registrotion or subsequent
lhereto, in such form ond monner
ond within such period os moy be
prescribed.

(2) The proper officer moy, on the
bosis of informotion furnished
under sub-section (l) or os
oscertoined by him, opprove or
reiect omendments in the
registrotion porticulors in such
monner ond within such period os
moy be prescribed:

Provided thot opprovol of the
proper officer sholl not be requhed in
respect of omendment of such
porticulors os moy be prescribed:

Provided funher thot the proper
officer sholl not rejed the opplicotion
for omendment in the registrotion
porticulors without giving the person
on opportunity of being heord.

(3) Any rejection or opprovol of
omendments under the Centrol
Goods ond Services Tox Ad sholl
be deemed to be o reiection or
opprovol under thisAct.

29. (l ) The proper oflicer moy, either on
his own motion or on on opplico-
tion filed by the registered person
or by his legol heirs, in cose of
deoth of such person, concel the
registrotion, in such monner ond
within such period os moy be pre-
scribed, hoving regord to the cir-
cumstonces where,-

Amendment
d
registrotion.

Concellotion
d
registrotion.



t43

(o) the business hos been
discontinued, tronslerred
fully for ony reoson including
deoth of the proprietor,
omolgomoted with other
legol entity, demerged or
otherwise disposed of; or

(b) there is ony chonge in the
constitution of the business;
q

(c) the toxoble person, other
thon the person registered
under sub-section (3) of
section 25, is no longer
lioble to be registered under
section 22 or section 24.

(2) The proper officer moy concelthe
registrotion of o person from such
dote, including ony retrospective
dote, os he moy deem fit, where,-
(o) o registered person hos

controvened such provisions
of the Act or the rules mode
thereunder os moy be
prescribed; or

(b) o person poying tox under
section 10 hos notfurnished
returns for trree consecutive
tox periods; or

(c) ony registered person, other
thon o person specified in
clouse (b), hos not furnished
returns for o continuous
period of six months; or

(d) ony person who hos token
voluntory registrotion under
sub-section (3) of sedion 25
hos not commenced busi-
ness within six months trom
the dote of registrotion; or



111

(e) registrotion hos been
obtoined by meons offroud,
wilful misstotement or
suppression offocts:

Provided thot the proper officer
sholl not concel the registrotion
without giving the person on
opportunity of being heord.

(3) The concellotion of registrotion
under this sedion sholl not offed
the liobility of the person to poy
tox ond other dues under this Act
or to dischorge ony obligotion
under this Act or the rules mode
thereunderfor ony period prior to
the dote oI concellotion whether
or not such tox ond other dues
ore determined before or ofter the
dote of concellotion.

(4) The concellotion of registrotion
under the Centrol Goods ond
Services Tox Act sholl be deemed
to be o concellotion of registrotion
under this Ad.

(5) Every registered person whose
registrotion is concelled sholl poy
on omount, by woy of debit in the
electronic credit ledger or
electronic cosh ledger, equivolent
to the credit of inputtox in respect
of inputs held in stock ond inputs
contoined in semi-finished or
finished goods held in stock or
copitol goods or plont ond
mochinery on the doy imme-
diotely preceding the dote ofsuch
concellotion or the output tox
poyoble on such goods,
whichever is higher, colculoted in
such monner os moy be
prescribed:



t15

Provided thot in cose of copitol
goods or plont ond mochinery, the
toxoble person sholl poy on omount
equolto the inputtox credittoken on
the soid copitol goods or plont ond
mochinery, reduced by such
percentoge points os moy be
prescribed or the tox on the
tronsoction volue of such copitol
goods or plont ond mochinery under
section 15, whichever is higher.

(6) The omount poyoble under sub-
section (5) sholl be colculoted in
such monner os moy be
prescribed.

30. (l ) Subiect to such conditions os moy
be prescribed, ony registered
person, whose registrotion is
concelled by the proper officer on
his own motion, moy opplyto such
officer for revocotion of con-
cellotion of the registrotion in the
prescribed monner within thirty
doys from the dote of service of
the concellotion order.

(2) The proper officer moy, in such
monner ond within such period
os moy be prescribed, by order,
either revoke concellotion of
lhe registrotion or reject the
opplicotion:

Provided thot the opplicotion for
revocotion of co n ce llotion of
registrotion sholl not be rejected
unless the opplicont hos been given
on opportunity of being heord.

(3) The revocotion of concellotion of
registrotion under the Centrol
Goods ond Services Tox Act sholl
be deemed to be o revocotion of
concellotion of registrotion under
this Ad.

Revocotion
of concello-
tion of
registrotion.



116

CHAPTER- VII

TAX INVOICE, CREDITAND DEBIT
NOTES

31. (1) A registered person supplying
toxoble goods sholl, b€fore or ot
the time ol,-
(o) removol of goods for supply

to the recipient, where the
supply invofues movement of
goods; or

(b) delivery of goods or moking
ovoiloble thereol to the
recipient, in ony other cose,
issue o tox invoice showing
tfre description, quontity ond
volue of goods, the tox
chorged thereon ond such
other porticulors os moy be
prescribed:

Provided thot the Government
moy, on the recommendotions of the
Council, by notificotion, specify the
cotegories of goods or supplies in
respect of which o tox invoice sholl
be issued, within such time ond in
such monner os moy be prescribed.

(2) A registered person supplying
toxoble services sholl, before or
ofter the provision of service but
within o prescribed period, issue
o tox invoice, showing the
description, volue, tox chorged
trcreon ond such other porticulors
os moy be prescribed:

Provided thot the Government
moy, on the recommendotions of the
Council, by notificotion ond subiect
to such conditions os moy be
mentioned therein, specify the
cotegories of services in respect of
which-

Tox invoice



t17

(o) ony other document issued
in relotion to the supply sholl
be deemed to be o tox
invoice; or

(b) tox invoice moy not be
issued.

(3) Notwithstonding onything con-
toined in sub-sections (l ) ond
(2) -
(o) o registered person moy,

within one month from the
dote of issuonce of certifi-
cote of registrotion ond in
such monner os moy be
prescribed, issue o revised
invoice ogoinst the invoice
olreody issued during the
period beginning with the
effective dote of registrotion
till the dote of issuonce of
certificote of registrotion to
him;

(b) o registered person moy not
issue o tox invoice if the
volue of fre goods or services
or both supplied is less thon
two hundred rupees subject
to such conditions ond in
such monner os moy be
prescribed;

(c) o registered person supplying
exempted goods or services
or both or poying tox under
the provisions of section l0
sholl issue, insteod of o tox
invoice, o bill of supply
contoining such porticulors
ond in such monner os moy
be prescribed:



148

Provided thot the registered
person moy not issue o bill of supply
if the volue of the goods or services
or both supplied is less thon two
hundred rupees subject to such
conditions ond in such monner os
moy be prescribed;

(d) o registered person sholl, on
receipt of odvonce poyment
with respect to ony supply
of goods or services or both,
issue o receipt voucher or
ony other document,
contoining such porticulors
os moy be prescribed,
evidencing receipt of such
poyment

(e) where, on receipt of odvonce
poyment with resped to ony
supply oi goods or services
or both the registered person
issues o receiptvoucher, but
subsequently no supply is
mode ond no tox invoice is
issued in pursuonce thereof,
the soid registered person
moy issue to the person who
hod mode the poyment, o
refund voucher ogoinst such
poyment;

(f) o registered person who is
lioble to poy tox under sub-
section (3) or sub-sedion (4)

of section 9 sholl issue on
invoice in respect of goods
or services or both received
by him from the supplier who
is not registered on the dote
of receipt of goods or
services or both;



t19

(g) o registered person who is
lioble to poy tox under sub-
section (3) or sub-seaion (4)
of section 9 sholl issue o
poyment voucher ot the time
of moking poyment to the
supplier.

(4) ln cose of continuous supply of
goods, where successive
stotements of occounts or
successive poyments ore involved,
the invoice sholl be issued before
or ot the time eoch such
stotement is issued or, os the
cose moy be, eoch such poyment
is received.

(5) Subiect to the provisions of clouse
(d) of sub-section (3), in cose of
continuous supply of services,--
(o) where the due dote of

poyment is oscertoinoble
from the controct, the invoice
shqll be issued on or before
the due dote of poyment;

(b) where the due dote of
poyment is not oscertoinoble
from the controct the invoice
sholl be issued before or ot
the time when the supplier
of service receives the
poyment;

(c) where the poyment is linked
to the completion of on
event, the invoice sholl be
issued on or before the dote
of completion ofthot event.

(6) ln o cose where the supply of
services ceoses under o controct
before the completion of the
supply, the invoice sholl be issued



150

ot the time when the supply
ceoses ond such invoice sholl be
issued to the extent of he supply
mode before such cessotion.

(7) Notwithstonding onything
contoined in sub-section (l ),
where the goods being sent or
Eken on opprowlfor sole or retum
ore removed before the supply
tokes ploce, the invoice sholl be
issued before or ot the time of
supply or six months from the
dote of removol, whichever is

eorlier.

Exp lo n otio n.-F or the purposes
of this seaion, the expression 'tox
invoice" sholl include ony revised
invoice issued by the supplier in
respect of o supply mode eorlier.

32. (l) A person who is not o registered
person sholl notcollea in respect
ol ony supply of goods or services
or both ony omount bywoy oftox
under this Act.

(2) No registered person sholl colled
tox except in occordonce with the
provisions of this Act or the rules
mode thereunder.

33. Notwithstonding onything contoined in

this Act or ony other low for the time
being in force, where ony supply is
mode for o considerotion, every person

who is lioble to poy toxfor such supply
sholl prominently indicote in oll
documenb reloting to ossessment, tox
invoice ond other like documents, the
omount of tox which sholl form port of
the price otwhich such supply is mode.

Prohibition
oI unoutho-
rised colle-
ction of tox

Amount of
tox to be
indicoted in
tox invoice
ond other
documents.



l5l

34. (l) Where o tox invoice hos been
issued for supply of ony goods or
services or both ond the toxoble
volue or tox chorged in thot tox
invoice is found to exceed the
toxoble volue or tox poyoble in
respect of such supply, or where
the goods supplied ore returned
by the recipient, or where goods
or services or both supplied ore
found to be deficient, the
registered person, who hos
supplied such goods or services
or both, moy issue to the recipient
o credit note contoining such
porticulors os moy be prescribed.

(2) Any registered person who issues
o credit note in relotion to o supply
of goods or services or both sholl
declore the detoils of such credit
note in the return for the month
during which such credit note hos
been issued but not loter thon
September lollowing tre end of the
finonciol yeor in which such
supply wos mode, or the dote of
furnishing oI the relevont onnuol
return, whichever is eorlier, ond
the tox liobility sholl be odiusted
in such monner os moy be
prescribed:

Provided tM no redudion in out-
put tox liobility of the supplier sholl
be permifted, if the incidence of tox
ond interest on such supply hos been
possed on to ony other person.

(3) Where o tox invoice hos been
issued for supply o{ ony goods or
services or both ond the toxoble
volue or tox chorged in thot tox
invoice is found to be less thon

Credit ond
debit notes.



152

the toxoble volue or tox poyoble
in respect of such supply, the
registered person, who hos
supplied such goods or services
or both, sholl issue to the recipient
o debit note contoining such
porticulors os moy be prescribed.

(4) Any registered person who issues
o debit note in relotion to o supply
ol goods or services or both sholl
declore the detoils oi such debit
note in the return lor the month
during which such debit note hos
been issued ond the tox liobility
sholl be odjusted in such monner
os moy be prescribed.

Explo notion.-F or the purposes
of this Act, the expression "debit
note"sholl include o supplementory
invoice.

CHAPTER. VIII

ACCOUNTSAND RECORDS

35. (l ) Every registered person sholl keep
ond mointoin, ot his principol
ploce of business, os mentioned
in the certificote of registrotion, o
true ond correct occount of-

(o) produdion or monu{octure of
goods;

(b) inword ond outword supply of
goods or services or both;

(c) stock of goods;

(d) input tox credit ovoiled;

(e) output tox poyoble ond poid;
ond

(f) such other porticulors os moy
be prescribed:

Accounts
ond other
records.



153

Provided lhot where more thon
one ploce of business is specified in
the certificote ol registrotion, the
occounts reloting to eoch ploce of
business sholl be kept ot such
ploces of business:

Provided further thot the
registered person moy keep ond
moinloin such occounts ond other
porticulors in electronic form in such
monner os moy be prescribed.

(2) Every owner or operotor o{
worehouse or godown or ony
other ploce used for storoge of
goods ond every tronsporter,
irrespective of whether he is o
registered person or not, sholl
mointoin records of the consigner,
consignee ond other relevont
detoils of the goods in such
monner os moy be prescribed.

(3) The Commissioner moy notify o
closs of toxoble persons to
mointoin odditionol occounts or
documents for such purpose os
moy be specified therein.

(4) Where the Commissioner
considers thot ony closs of
toxoble persons is not in o
position to keep ond mointoin
occounts in occordonce with the
provisions ol this sedion, he moy,
for reosons to be recorded in
writing, permit such closs of
toxo ble persons to mointoin
occounts in such monner os moy
be prescribed.

(5) Every registered person whose
turnover during o finonciol yeor
exceeds the prescribed limit sholl
get his occounts oudited by o



t54

chortered occountont or o cost
occountont ond sholl submit o
copy of the oudited onnuol
occounts, the recon ciliotion
stotement under sub-seaion (2)

of section 44 ond such other
documents in such form ond
monner os moy be prescribed.

(5) Subiect to the provisions of clouse
(h) of sub-section (5) of section
17, where the registered person
foils to occount lor the goods or
services or both in occordonce
with the provisions of sub-section
(l), the proper officer sholl
determine the omount of tox
poyoble on the goods or services
or bottr thot ore not occounted for,

os if such goods or services or
both hod been supplied by such
person ond the provisions of
section 73 or sedion74, os the
cose moy be, sholl, mutotis
mutondis, opply for determinotion
of such tox.

36. Every registered person required to
keep ond mointoin books ol occount
or other records in occordoncewith the
provisions of sub-section (l ) of section
35 sholl retoin them until the expiry of
seventy two months from the due dote
of fumishing of onnuol retum for tre yeor
pertoining to such occounts ond
records:

Provided thot o registered
person, who is o porty to on oppeol
or revision or ony other proceedings
before ony Appellote Authority or
Revisionol Authority or Appellote
Tribunolor court, wheher filed by him
or by the Commissioner, or is under

Period oI
retention
of occounts



r55

investigotion for on offence under
ChopterXlX, sholl retoin the books of
occount ond other records pertoining
to the subiect motter ol such oppeol
or revision or proceedings or
investigotion for o period of one yeor
ofter finol disposol ol such oppeol or
revis ion or proceedings or
investigotion, or lor the period
specilied obove, whichever is loter.

CHAPTER. IX

RETURNS

37. (1) Every registered person, otherfun
on lnput Service Distributor, o non-
resident toxoble person ond o
person poying tox under the
provisions of section l0 or sedion
5l or section 52, sholl furnish,
electronicolly, in such form ond
monner os moy be prescribed, the
detoils of outword supplies of
goods or services or both effected
during o tox period on or before
the tenth doy of the month
succeeding the soid tox period
ond such detoils sholl be
communicoted to the recipient of
the soid supplies within such time
ond in such monner os moy be
prescribed:

Provided thot the registered
person sholl not be ollowed to lurnish
the detoils of outword supplies during
the period from the eleventh doy to
the fifteenth doy of the month
succeeding the tox period:

Provided further thot the
Commissioner moy, for reosons to be
recorded in writing, by notificotion,
extend the time limit for furnishing
such detoils lor such closs ol toxoble
persons os moy be specified therein:

Furnishing
detoils of
outword
supplies.



r56

Provided olso thot ony extension
of time limit notified by the
Commissioner of centrol toxsholl be
deemed to be notified by the
Commissioner.

(2) Every registered person who hos
been communicoted the detoils
under sub-section (3) of section
38 or the detoils pertoining to
inword supplies of lnput Service
Distributor under sub-section (4)

ol section 38, sholl either occept
or reject the detoils so
communicoted, on or belore the
seventeenth doy, but not before
the fifteenth doy, of the month
succeeding the tox period ond the
detoils furnished by him under
sub-section (l) sholl stond
omended occordinqly.

(3) Any registered person, who hos
furnished the detoils under sub-
section (l ) for ony tox period ond
which hove remoined unmotched
under section 42 or section 43,
sholl, upon discovery ofony error
or omission therein, rectily such
error or omission in such monner
os moy be prescribed, ond sholl
poy the tox ond interest, if ony, in

cose there is o short poyment of
tox on occount of such error or
omission, in the return to be
furnished for such tox period:

Provided thot no rectificotion ol
error or omission in respect of the
detoils furnished under sub-section
(1) sholl be ollowed ofter iurnishing
of the return under section 39 for the



157

monh of September following the end
of the finonciol yeor to which such
detoils pertoin, or lurnishing of the
relevont onnuol return, whichever is
eorlier.

Explonation.--For the purposes of
this Chopter, the expression 'Aetoils
of outword supplies" sholl include
detoils of invoices, debit notes, credit
notes ond revised invoices issued in
relotion to outword supplies mode
during ony tox period.

38. (l) Every registered person, other
thon on lnput Service Distributor
or o non-resident toxoble person
or o person poying tox under the
provisions of section l0 or seclion
51 or section 52, sholl verify,
volidote, modify or delete, if
required, the detoils reloting to
outword supplies ond credit or
debit notes communicoted under
sub-section (l ) of section 37 to
prepore the detoils of his inword
supplies ond credit or debit notes
ond moy include therein, the
detoils of inword supplies ond
credit or debit notes received by
him in respect of such supplies
thot hove not been declored by
the supplier under sub-section (l )
oI section 37.

(2) Every registered person, other
thon on lnput Service Distributor
or o non-resident toxoble person
or o person poying tox under the
provisions of section l0 orsection
5l or section 52, sholl furnish,
electronicolly, the detoils ol
inword supplies of toxoble goods
or services or both, including

Furnishing
detoils of
inword
supplies.



158

inword supplies of goods or
services or both on which the tox
is poyoble on reverse chorge
bosis under this Act ond inword
supplies of goods or services or
both toxoble under the lntegroted
Goods ond Services Tox Act or
on which integroted goods ond
services tox is poyoble under
section 3 ol the Customs Toriff
Act, 1975, ond credit or debit
notes received in respect of such
supplies during o tox period ofter
the tenth doy but on or before the
fifteenth doy of the month
succeeding the tox period in such
torm ond monner os moy be
prescribed:

Provided thot fre Commissioner
moy, for reosons to be recorded in
writing, by notificotion, extend the
time limit for lurnishing such detoils
{or such closs oftoxoble persons os
moy be specified therein:

Provided further thot ony
e><tension of time limit notilied by the
Commissioner of cerrfrol tox sholl be
deemed to be notified by the
Commissioner.

(3) The detoils of supplies modified,
deleted or included by the
recipient ond furnished undersub-
section (2) sholl be commu-
nicoted to the supplier concerned
in such monner ond within such
time os moy be prescribed.

(4) The detoils of supplies modified,
deleted or included by the
recipient in the return furni-
shed under sub-section (2) or



r59

sub-sedion (4) o, section 39 sholl
be communicoted to the supplier
concerned in such monner ond
within such time os moy be
prescribed.

(5) Any registered person, who hos
furnished the detoils under sub-
sedion (2) for ony tox period ond
which hove remoined unmotched
under sedion 42 or section 43,
sholl, upon discovery ofony error
or omission therein, rectify such
error or omission in the tox period
during which such error or
omission is noticed in such
monner os moy be prescribed, ond
sholl poy the tox ond interest, if
ony, in cose there is o short
poyment of tox on occount of
such error or omission, in the
return to be furnished for such tox
period:

Provided thot no rectificotion ol
error or omission in respect o, the
detoils f urnished under sub-section
(2) sholl be ollowed ofter furnishing
of the return under section 39 for the
month of September following the end
of the finonciol yeor to which such
detoils pertoin, or {urnishing of the
relevont onnuol return, whichever is
eorlier.

39. (l ) Every registered person, otherthon
on lnput Service Distributor or o
non-resident toxoble person or o
person poying tox under the
provisions of sedion l0 or sedion
51 or section 52 sholl, ior every
colendor month or port thereof,
furnish, in such form ond monner
os moy be prescribed, o return,

Furnishing
d
returns.



r60

electronicolly, of inword ond
outword supplies of goods or
services or both, input tox credit
ovoiled, tox poyoble, tox poid ond
such other porticulors os moy be
prescribed on or before the
twentieth doy of the month
succeeding such colendor month
or port thereof.

(2) A registered person poying tox
under the provisions of sedion l0
sholl, for eoch quorter or port
thereof, furnish, in such form ond
monner os moy be prescribed, o
return, electronicolly, of turnover
in the Stote, inword supplies of
goods or services or both, tox
poyoble ond tox poid within
eighteen doys ofter the end of such
quorter.

(3) Every registered person required
to deduct tox ot source under the
provisions of section 5l sholl
furnish, in such form ond monner
os moy be prescribed, o return,
electronicolly, for the month in
which such dedudions hove been
mode within ten doys ofter the end
of such month.

(4) Every toxoble person registered
os on lnput Service Distributor
sholl, for every colendor month or
port thereof, lurnish, in such form
ond monner os moy be
prescribed, o return, electronicolly,
within thirteen doys ofter the end
of such month.

(5) Every registered non-resident
toxoble person sholl, lor every
colendor month or port thereof,
furnish, in such form ond monner



t6l

os moy be prescribed, o return,
electronicolly, within twenty doys
ofter the end of o colendor month
orwithin seven doys ofter the lost
doy ol the period of registrotion
specified under sub-section (l ) of
section 27, whichever is eorlier.

(6) The Commissioner moy, for
reosons to be recorded in writing,
by notificotion, extend the time
limit for furnishing the returns
under this section for such closs
of registered persons os moy be
specified therein:

Provided thot ony extension of time
limits notified by the Commissioner
of centroltox sholl be deemed to be
notified by the Commissioner.

(7) Every registered person, who is
required to furnish o return under
sub-section (l ) or sub-section (2)

or sub-section (3) or sub-section
(5), sholl poy to the Government
the tox due os per such return not
loter thon the lost dote on which
he is required to furnish such
return.

(8) Every registered person who is
required to furnish o return under
sub-section (l ) or sub-section (2)

shollfurnish o return for every tox
period whether or not ony
supplies of goods or seryices or
both hove been mode during such
tox period.

(9) Subiect to the provisions of
sections 37 ond 38, if ony
registered person ofter furnishing
o return under sub-section (l )or
sub-seaion (2) sub-sedion (3) or
sub-section (4) or sub-section (5)



t62

discovers ony omission or
incorred porticulors therein, other
thon os o result of scrutiny, oudit,
inspection or enforcement odivity
by the tox outhorities, he sholl
rectify such omission or incorrect
porticulors in the return to be
furnished for the month or quorter
during which such omission or
incorrect porticulors ore noticed,
subiect to poyment of interest
under this Act:

Provided thot no such recti-
ficotion of ony omission or incorrect
porticulors sholl be ollowed ofter the
due dote for {urnishinq of return for
the month of September or second
quorter following the end of the
finonciol yeor, or the octuol dote of
lurnishing of relevont onnuol return.
whichever is eorlier.

(10) A registered person sholl notbe
ollowed to furnish o return {or o
tox period if the return for ony of
the previous tox periods hos not
been furnished by him.

40. Every registered person who hos mode
outword supplies in the period between
the dotes on which he become lioble
to registrotion till the dote on which
registrotion hos been gronted sholl
declore the some in the lirst return
furnished by him ofter gront of
registrotion.

41. (l) Every registered person sholl,
subject to such conditions ond
restrictions os moy be prescribed,
be entitled to toke the credit of
eligible input tox, os self-
ossessed, in his return ond such
omount sholl be credited on o
provisionol bosis to his electronic
credit ledger.

Cloim of in-
put tox
credit ond
provisionol
occeptonce
thereof.

First Return.



l6l
(2) The credit referred to in sub-

section (l ) sholl be utilised only
for poyment of self-ossessed
output tox os per the return
referred to in the soid sub-section.

42. (l ) The detoils ol every inword supply
furnished by o registered person
(hereofter in this section refened
to os the "recipient') for o tox
period sholl, in such monner ond
within such time os moy be
prescribed, be motched-
(o) with the correspon ding

detoils of outword supply
furnished by the corres-
ponding registered person
(hereofter in this section
referred to os the "supplierJ
in his volid return for the
some tox period or ony
preceding tox period;

(b) wih tre integroted groods ond
services tox poid under
section 3 of the Customs
Toriff Act, 1975 in respect of
goods imported by him; ond

(c) {or duplicotion of cloims of
input tox credit.

(2) The clcrim of input tox credit in
resped o{ invoices or debit notes
reloting to inword supply thot
motch with the detoils of
corresponding outword supply or
with the integroted goods ond
services tox poid under sedion 3

of the Customs Toriff Act, 1975 in
respea of goods imported by him
sholl be flnolly occepted ond such
occeptonce sholl be communi-
coted, in such monner os moy be
prescribed, to the recipient.

Motching,
reversol
ond recloim
of input
tox credit.

5l of 1975.

5l of 1975



164

(3) Where the lnput tox credit cloimed
by o recipient in respect of on
inword supply is in excess of the
tox declored by the supplierforthe
some supply or the outword
supply is not declored by the
supplier in his volid returns, the
discreponcy sholl be communi-
coted to both such persons in
such monner os moy be
prescribed.

(4) The duplicotion of cloims of input
tox credit sholl be communicoted
to the recipient in such monner
os moy be prescribed.

(5) The omount in respect of which
ony discreponcy is communicoted
under sub-section (3) ond which
is not rectified by the supplier in
his volid return for the month in
wh ich discreponcy is
communicoted sholl be odded to
the output tox liobility of the
recipient, in such monner os moy
be prescribed, in his return for the
month succeeding the month in
which the discreponcy is
communicoted-

(6) The omount cloimed os input tox
credit thot is found to be in excess
on occount of duplicotion of cloims
sholl be odded to the output tox
liobility ofthe recipient in his return
for the month in which the
duplicotion is communicoted.

(7) The recipient sholl be eligible to
reduce, from his output tox
liobility, the omount odded under
sub-section (5), if the supplier
declores the detoils ofthe invoice
or debit note in his volid return
within the time specified in sub-



t65

section (9) of section 39

(8) A recipient in whose output tox
liobility ony omount hos been
odded under sub-section (5) or
sub-section (6), sholl be lioble to
poy interest ot the rote specified
under sub-section (l ) of section
50 on the omount so odded irom
the dote of ovoiling of credit till the
corresponding odditions ore mode
under the soid sub-sections.

(9) Where ony reduction in output tox
liobility is occepted under sub-
section (7), the interest poid under
sub-section (8) sholl be refunded
to the recipient by crediting the
omount in the corresponding
heod of his electronic cosh ledger
in such monner os moy be
prescribed:

Provided thot the omount of
interest to be credited in ony cose
sholl not exceed the omount of
interest poid by the supplier.

('10) The omount reduced from the
output tox liobility in controvention
ofthe provisions of sub-section (7)
sholl be odded to the output tox
liobility of the recipient in his return
for the month in which such
controvention tokes ploce ond
such recipient sholl be lioble to poy
interest on the omount so odded
otthe rote specified in sub-seaion
(3) of section 50.

43. (l) The detoils of every credit note
reloting to outword su pp ly
furnished by o registered person
(hereofter in this section referred
to osthe "supplier') for o tox period
sholl, in such monner ond within
such time os moy be prescribed,
be motched--

Motching,
reversol
ond recloim
d
reduction in
output
tox liobility.



t66

(o) with the corresponding
reduction in the cloim for
input tox credit by the
corresponding registered
person (hereofter in this
section referred to os the
'lecipient') in his volid return
for the some tox period or ony
subsequent tox period; ond

(b) for duplicotion of cloims for
reduction in output tox
liobility.

(2) The cloim for redudion in output
tox liobility by the supplier thot
motches with the corresponding
reduction in *re cloim for input tox
credit by the recipient sholl be
finolly occepted ond communi-
coted, in such monner os moy be
prescribed, to the supplier.

(3) Where the redudion of ouFuttox
liobility in respect of outword
supplies exceeds the corres-
ponding reduction in ttre cloim for
input tox credit or the corres-
ponding credit note is not
declored by the recipient in his
volid returns, tre discreponcy sholl
be communicoted to both such
persons in such monner os moy
be prescribed.

(4) The duplicotion of cloims for
reduction in output tox liobility
sholl be communicotid to the
supplier in such monner os moy
be prescribed.

(5) The omount in respect of which
ony discreponcy is communicoted
under sub-section (3) ond which
is oot rectified by the recipient in



124

cotegory is used by o
registered person for
moking on outword
toxoble supply of the
some cotegory of goods
or services or both or os
on element of o toxoble
composite or mixed
supply;

(ii) membership of o club,
heolth ond fitness
cente;

(iii) rento-cob, life insuronce
ond heolth insuronce
except where -

(A) the Government notifies the
services which ore obligotory
for on employerto provide to
its employees under ony low
for the time being in force; or

(B) such inword supply of goods
or services or both of o
porticulor cotegory is used
by o registered person {or
moking on outword toxoble
supply of the some cotegory
of goods or services or both
or os port of o toxoble
composite or mixed supply;
ond

(iv) tovel benefits extended
to employees on voco-
tion such os leove or
home trovel concession.

(c) works conroct services when
supplied or construdion of on
immovoble property (other
thon plont ond mochinery)
except where it is on input
service lor further supply of
works controct service;



123

Provided further thot the
restriction of fifty percent sholl not
opply to the tox poid on supplies
mode by one registered person to
onother registered person hoving the
some PermonentAccount Number.

(5) Notwithstonding onything con-
toined in sub-seaion (l ) of sedion
l6 ond sub-section (l ) of sedion
18, input tox credit sholl not be
ovoiloble in respect of the
following, nomely:-

(o) motor vehicles ond other
conveyonces except when
they ore used-
(i) for moking the {ollowing

toxoble s u pplies,
nomely : --

(A) furher supply of such
vehicles or convey-
onces; or

(B) tronsportotion of
possengers; or

(C) importing troinlng on
drMng, flying, nwige
ting such vehicles or
conveyonces;

(ii) for tronsportotion of
goods;

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

(i) food ond beveroges,
outdoor cotering, beouty
treotment, heolth ser-
vices, cosmetic ond
plostic surgery except
where on inword supply
of goods or services or
both of o po rticu lo r



122

(2) Where the goods or services or
both ore used by the registered
person pordy for effeaing toxoble
supplies including zero-roted
supplies under this Act or under
tle lntegrqted Goods ond SeMces
Tox Act ond portly for effecting
exempt supplies under lhe soid
Acts, the omount of credit sholl
be restricted to so much of the
input tox os is otfibutoble to the
soid toxoble supplies including
zereroted supplies.

(3) The volue of exempt supply under
sub-sedion (2) sholl be such os
moy be prescribed, ond sholl
include supplies on which the
recipient is lioble to poy tox on
reverse chorge bosis, trons-
octions in securities, sole of lond
ond, subject to clouse (b) of
porogroph 5 of Schedule ll, sole
of building.

(4) A bonking compony or o finonciol
institution including o non-bonking
finonciol compony, engoged in
supplying services by woy of
occepting deposits, extending
loons or odvonces sholl hove the
option to either comply with the
provisions of sub-section (2), or
ovoil of, every month, on omount
equol to fifty per cent. of fie eligible
input tox credit on inputs, copitol
goods ond input services in thot
month ond the rest sholl lopse:

Provided thot the option once
exercised sholl not be withdrown
during the remoining port of the
finonciol yeor:

ri .



l2t
doys from the dote of issue of invoice
by the supplier, on omount equol to
the input tox credit ovoiled by the
recipient sholl be odded to his output
tox liobility, olong with interest
thereon, in such monner os moy be
prescribed:

Provided olso thot the recipient
sholl be entitled to ovoil of the credit
of inputtox on poyment mode by him
of the omount towords the volue of
supply of goods or services or both
olong with tox poyoble thereon.

(3) Where the registered person hos
cloimed depreciotion on the tox
component of the cost of copitol
goods ond plont ond mochinery
under the provisions of the
lncome-tox Act, 1961, the input
tox credit on the soid tox
component sholl not be ollowed.

(4) A registered person sholl not be
entitled to toke input tox credit in
respect of ony invoice or debit
note for supply of goods or
services or both ofter *re due dote
of furnishing of the return under
section 39 for the month of
September following the end of
{inonciol yeor to which such
invoice or invoice reloting to such
debit note pertoins or lurnishing
of the relevont onnuol return,
whichever is eorlier.

17. (l) Where the goods or services or
both ore used by the registered
person portly for the purpose of
ony business ond portly for other
purposes, the omount of credit
sholl be restriaed to so much of
the input tox os is ottributoble to
the purposes of his business.

Apportion-
ment of
creodit ond
blocked
credits.

43 of l96l .



t20

(o) he is in possession of o tox invoice
or debit note issued by o supplier
registered under thisAct. or such
other tox poying documents os
moy be prescribed;

(b) he hos received the goods or
services or both.

Etplonotion.- For the purposes
of this clouse, it sholl be deemed thot
fre registered person hos received tfre
goods where tre goods ore delivered
by the supplier to o recipient or ony
other person on the direction of such
registered person, whether oding os
on ogent or otherwise, before or
during movement ofqoods, either by
woy of tronsfer ol documents oI title
to goods or otherwise;

(c) subiect to the provisions of section
41, the tox chorged in respect oI
such supply hos been octuolly
poid to the Government, either in
cosh or through utilisotion of input
tox credit odmissible in respect
of the soid supply; ond

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

Provicieci thot whei; ,he .:oods
ogoinst on invcice ore,,,:.,.;.-.C irrots
or instoimexts, ihe reEisl. !i-J iier-. Dn

sholl be entitled to toii,, i'..j,t Jpon
receipt :l the :ost ict !. i '-'. ne!:l:

Provideci further rnot *here o
recipient foils to poy to the eupplier
of goods or services or Drr, oiher
thon the supplies on whicn tox is
poyoble on reverse chorge bosis, the
omount towords the volue of supply
olong witlt tox poyoble thereon within
o period of one hundred ond eighty



I t9

(v) one of them directly or
indirecdy conkols the other;

(vi) both of them ore directly or
indirecdy conrolled by o hhd
pefson;

(vii) together they directly or
indirectly control o third
person; or

(viii) they ore members of the
some fomily;

(b) the term 'person' olso includes
legol persons.

(c) persons who ore ossocioted in dre
business of one onother in thot
one is the sole ogent or sole
disfibutor or sole concessionoire,
howsoever described, oftre other,
sholl be deemed to be reloted.

CHAPTER - V

INPUTTAX CREDIT

r6. (r)

(2)

Every registered person sholl,
subiect to such conditions ond
restrictions os moy be prescribed
ond in the monner specified in
section 49, be entitled to toke
credit of input tox chorged on ony
supply of goods or sewices or boltt
to him which ore used or intended
to be used in the course or
furtheronce of his business ond
the soid omount sholl be credited
to the elecronic credit ledger of
such person.

Notwithstonding onything con-
toined in this section, no regis-
tered person sholl be entitled to
the credit of qny inpul tox in re-
sped of ony supply of goods or
services or both to him unless,-

Eligibility ond
conditionsfor
toking input
tox credit.



I l8

(ii) input tox credit os is
ottributoble to the
discount on the bosis of
document issued by tle
supplier hos been
rwersed by the recipient
of the supply.

(4) Where the volue of the supply of
goods or servkes or both connot
be determined under sub,section
(l ), the some sholl be determined
in such monner os moy be
prescribed.

(5) Notwithstonding onything
contoined in sub-section (l) or
sub-section (4), the volue of such
supplies os moy be notified by the
Government on the recommen-
dotions of the Council sholl be
determined in such monner os
moy be prescribed.

Explonotion.- For the purposes of fris
Act,-

(o) persons sholl be deemed to be
'leloted persons" if -

(i) such persons ore officers or
directors of one onother 5
businesses;

(ii) such persons ore legolly
recognised portners in
business;

(iii) such persons ore employer
ond employee;

(iv) ony person directly or
indirectly owns, controls or
holds twenty-five per cent. or
more of the outstonding
voting stock or shores oI
both of them;



tt7

(c) incidentol expenses,
including commission ond
pocking, chorged by the
supplier to the recipient of o
su pply ond ony omount
chorged lor onything done by
the supplier in respect ofthe
supply ol goods or services
or both ot the time of, or
before delivery of goods or
supply of services;

(d) interest or lote iee or penolty
for deloyed poyment o, ony
considerotion for ony supply;
ond

(e) subsidies directly linked to
the price excluding subsidies
provided by the Centrol
Government ond Stote
Govemmenb.

Explanation.-F or the purposes
of this sub-section, the omount of
subsidy shollbe included in the volue
of supply of fre supplier who receives
the subsidy.

(3) The volue of the supply sholl not
include ony discount which is
given-

(o) before or ot the time of the
supply if such discount hos
been duly recorded in the
invoice issued in respect of
such supply; ond

(b) ofter the supply hos been
effeaed, if-
(i) such discount is estobli-

shed in terms of on
ogreement entered into
ot or before the time of
such supply ond
specif icolly linked to
relevont invoices; ond



ll6
tre bonk occount is ofter four working
doys lrom the dote of chonge in the
role of tox.

Explonotion.-F or the purposes
ofthis section, the dote of receipt of
poyment"sholl be the dote on which
the poyment is entered in the books
of occount ofthe supplier or the dote
on which the poyment is credited to
his bonkoccounl whichever is eorlier.

15. (l) The volue of o supply of goods or
services or both sholl be the
tronsoction volue, which is the
price octuolly poid or poyoble lor
the soid supply of goods or
seMces or botr where fre supplier

ond the recipient ofthe supplyore
not reloted ond the price is the
sole considerotion for the supply.

(2) The volue of supply sholl include-

(o) ony toxes, duties, cesses,
fees ond chorges levied under

ony low for the time being in
force other thon thisAct the
Centrol Goods ond Services
Tox Act ond the Goods ond
Services Tox (Compensotion

to Stotes) Act, if chorged
seporotely by the supplier;

(b) ony omount *rot tre supplier
is lioble to poy in relotion to
such supply but which hos
been incurred by the
recipient of the supply ond
not included in the price
octuolly poid or poyoble for
the goods or services or
both;

Volue of
toxoble
supply.



II'
(ii) where the invoice hos been

issued prior to the chonge in
rote oI tox but poyment is
received ofter the chonge in
rote oI tox, the time of supply
sholl be the dote of issue of
invoice; or

(iii) where the poyment hos been
received before the dunge in
rote of tox, but the invoice for
the some is issued ofter the
chonge in rote of tox, the
time of supply sholl be the
dote of receipt of poyment;

(b) in cose the goods or services or
both hove been supplied ofter the
chonge in rote of tox,-
(i) where fie poyment is received

ofter the chonge in rote o{ tox
but the invoice hos been
issued prior to the chonge in
rote of tox, the time of supply
sholl be the dote of receipt
of poyment; or

(ii) where the invoice hos been
iss ued ond poyment is
received before *re chonge in
rote of tox, the time of supply
sholl be the dote of receipt
of poyment or dote of issue
ol invoice, whichever is
eorlier; or

(iii) where the invoice hos been
issued ofter the chonge in
rote of tox but the poyment
is received beJore tre chonge
in rote of tox, the time of
supply sholl be the dote of
issue of invoice:

Provided thot the dote of receipt
of poyment sholl be the dote ofcredit
in the bonk occount if such credit in



ttl
(b) the dote of redemption of

voucher, in oll other coses.

(5) Where it is not possible to
detemine lhe time of supply under
the provisions of subsection (2)

or sub.sedion (3) or sub-section
(4), the time of supply sholl -(o) in o cose where o periodicol

return hos to be liled, be the
dote on which such return is
to be filed; or

(b) in ony other cose, be the
dote on which tle tox is poid.

(6) The time of supply to the extent it
relotes to on oddition in the volue
of supply by woy of interest, lote
fee or penolty lor deloyed poyment
of ony considerotion sholl be the
dote on which the supplier
receives such oddition in volue.

14. Notwithstonding onything contoined in
sedion 12 or section I 3, the time of
supply, where there is o chonge in the
rote of tox in respect o{ goods or
services or both, sholl be determined
in the following monner, nomely:-
(o) in cose the goods or services or

botr hove been supplied before fie
chonge in rote of tox,-
(i) where he invoice for the some

hos been issued ond the
poyment is olso received
ofter the chonge in rote of
tox, the time oI supply sholl
be the dote of receipt of
poyment or the dote of issue
of invoice, whichever is
eorlier; or

Chonge in
rote of
tox in
resped of
supply of
goods or
services.



u3

occount of tre supplier or tte
dote on which the poyment
is credited to his bonk
occount whichever is eorlier.

(3) ln cose oI supplies in respect of
which tox is poid or lioble to be
poid on reverse chorge bosis, the
time of supply sholl be the eorlier
of the following dotes, nomely:-
(o) the dote of poyment os

entered in the books of
occount of the recipient or
the dote on which the
poyment is debited in his
bonk occount, whichever is
eorlier; or

(b) the dote immediotely
following sixty doys from the
dote of issue ol invoice or
ony other document, by
whotever nome colled, in lieu
thereof by the supplier:

Provided thot where it is not
possible to determine the time of
supply under clouse (o) or clouse (b),
the time of supply sholl be the dote
of entry in the books of occount of
the recipient of supply:

Provided further thot in cose of
supply by ossocioted enterprises,
where the supplier of service is
locoted outside lndio, the time of
supply sholl be the dote of entry in
the books of occount of the recipient
of supply or the dote of poyment,
whichever is eorlier.

(4) ln cose of supply of vouchers by
o supplier, the time of supply sholl
be --
(o) the dote of issue ofvoucher,

if the supply is identilioble ot
thot poin! or



ll2
(o) the dote of issue ol invoice

by he supplier, il the invoice
is issued within the period
presoibed under sub-section
(2) of section 3l or the dote
of receipt of poyment,
whichever is eorlier; or

(b) the dote of provision of
service, if the invoice is not
issued within the period
pescribed under subseclion
(2) of section 3l or the dote
ol receipt of poyment,
whichever is eorlier; or

(c) the dote on which the
recipient shows the receipt
of services in his books of
occount, in o cose where the
provisions of clouse (o) or
clouse (b) do not opply:

Provided thot where the supplier
oftoxoble service receives on omount
upto one thousond rupees in excess
of the omount indicoted in the tox
invoice, tre time of supply to $e extent
of such excess omount sholl, ot the
option ol tre soid supplier, be the dote
of issue of invoice reloting to such
excess omount.

Explonotion.-For the purposes of
clouses (o) ond (b) -

(i) the supply sholl be deemed
to hove been mode to the
extent it is covered by the
invoice or, os the cose moy
be, the poymenq

(ii) "the dote oI receipt of
poyment" sholl be the dote
on which the poyment is
entered in the books of



l

Provided thot where it is not
possible to determine the time of
supply under clouse (o) or clouse (b)
or clouse (c), the time of supply sholl
be the dote of entry in the books of
occount of the recipient of supply.

(4) ln cose of supply of vouchers by
o supplier, the time of supply sholl
be
(o) the dote of issue of voucher,

if $e supply is identifioble ot
thot point; or

(b) the dote of redemption of
voucher, in oll other coses.

(5) Where it is not possible to
detetmine tre lime of supply under
the provisions of sub-section (2)

or sub.section (3) or sub-section
(4), the time of supply sholl-
(o) in o cose where o periodicol

return hos to be filed, be the
dote on which such return is
to be filed; or

(b) in ony other cose, be the
dote on which the tox is
poid.

(6) The time of supply to the extent it
relotes to on oddition in the volue
ol supply by woy of interest, lote
fee or penolty for deloyed poyrnent
of ony considerotion sholl be the
dote on which the supplier
receives such oddition in volue.

13. (l) The liobility to poy tox on services
sholl orise ot the time ol supply,
os determined in occordonce witlr
the pro sions oI this section.

(2) The time of supply of services
sholl be tre eorliest of tre following
dotes, nomely:-

Time of
supply of
services.



ll0

extent of such excess omounl sholl,
ot the option of the soid supplier, be
lhe dote of issue of invoice in resped
ol such excess omount.

Explonolion l.--For the
purposes ol clouses (o) ond (b),
"supply" sholl be deemed to hove
been mode to the extent it is covered
by the invoice or, os the cose moy
be, the poyment.

Explanotion 2.-For the purposes ol
clouse (b), the dote on which lhe
supplier receives the poyment" sholl
be the dote on which the poyment is
entered in his books of occount or
the dote on which the poyment is
credited to his bonk occount,
whichever is eorlier.

(3) ln cose of supplies in respect of
which tox is poid or lioble to be
poid on reverse chorge bosis, the
dme of supply shollbe the eorliest
of the following dotes, nomely:-

(o) the dote oI the receipt of
goods; or

(b) the dote o{ poyment os
entered in the books of
occount of the recipient or
the dote on which the
poyment is debited in his
bonk occount, whichever is
eorlier;or

(c) the dote immediotely
lollowing thirty doys from the
dote of issue of invoice or ony
other document, by whotever
nome colled, in lieu thereof
by the supplier:



109

of tre Centrol Goods ond Services
Tox Act sholl be deemed to be o
notificotion or, os the cose moy
be, on order issued under this
Act.

Explonotion.-For the purposes of
this section, where on exemption in
respect of ony goods or services or
both from the whole or port ofthe tox
levioble thereon hos been gronted
obsolutely, the registered person
supplying such goods or services or
both sholl not collect the tox, in
excess of the effedive rote, on such
supply of goods or services or both.

CHAPTER.IV

TIMEAND VALUE OF SUPPLY

12. (1) The liobility to poy tox on goods
sholl orise ot the time of supply,
os determined in occordonce with
the provisions ofthis section.

(2) The time of supply of goods sholl
be the eorlier of the lollowing
dotes, nomely:-

(o) the dote oI issue of invoice
by the supplier or the lost
dote on which he is required,
under sub-section (l) of
section 31, to issue the
invoice with respect to the
supply; or

(b) the dote on which the
supplier receives the
poyment with resped to the
supply:

Provided thot where the supplier
oftcxoble goods receives on omount
up to one thousond rupees in excess
of the omount indicoted in the to,.
inveice, the time of supply to tlrt,

Time oI
supply of
goods



t0E

such conditions os moy be
specif ied therein, goods or
services or both of ony specified
description from the whole or ony
port of the tox levioble thereon
wih effect from such dote os moy
be specified in such notificotion.

(2) Where the Govemment is sotisfied
thot it is necessory in the public
interest so to do, it moy, on the
recommendotions of the Council,
by speciol order in eoch cose,
under circumstonces of on
exceptionol noture to be stoted in
such order, exemptfrom poyment
of tox ony goods or services or
both on which tox is levioble.

(3) The Government moy, if it
considers necessory or expedient
so to do lor the purpose of
clorifying the scope or opplicobility
of ony notificotion issued under
sub-section (1) or order issued
under sub-section (2), insert on
explonotion in such notiJicotion or
order, os the cose moy be, by
notificotion ot ony time within one
yeor of issue oI the notificotion
under sub-section (l) or order
under sub-section (2), ond every
such explonotion sholl hove etfea
os i{ il hod olwoys been the port
of the first such notificotion or
order, os the cose moy be.

(4) Any notificotion issued by the
Centrol Government, on the
recommendotions of the Council,
under sub-sedion (l) of section
ll or order issued under
subsection (2) ofthe soid section



43 of l96l

t07

Provided thot where more
thon one registered person ore
hoving the some Permonent
Account Number (issued under
the lncome-tox Act l96l), the
registered person sholl not be
eligible to opt for tre scheme under
sub-section (1) unless oll such
registered persons opt to poy tox
under thot sutssection.

The option ovoiled of by o
registered person under sub-
sedion (l ) sholl lopse with effed
from the doy on which his
oggregote turnover during o
finonciol yeor exceeds the limit
specified under sub-section (l ).

A toxoble person to whom the
provisions of sub-seaion (l ) opply
sholl not collect ony tox from the
recipient on supplies mode by him
nor sholl he be entitled to ony
credit oI input tox.

l, the proper officer hos reosons
to believe thot o toxoble person
hos poid tox under sub-section (l)
despite not being eligible, such
person sholl, in oddition to ony tox
thot moy be poyoble by him under
ony other provisions of this Act,
be lioble to o penolty ond the
provisions of section 73 or sedion
74 sholl, mutotis mutondis, opply
for determinotion oI tox ond
penolty.

Where the Govemment is sotisfied
thot it is necessory in the public
interest so to do, it moy, on the
recommendotions of the Council,
by notificotion, exempt generolly,
either obsolutely or subiect to

(3)

(4)

(s)

ll.(l) Power to
gront
exemption
from tox.



106

(c) holf W cent. of lhe turnover
in Stote in cose of other
suppliers,

subject to such conditions
ond restrictions os moy be
prescribed:

Provided thot the Government
moy, by notificotion, increose tre soid
limit of fifty lokh rupees to such higher
omount, not exceeding one
crore rupees, os moy be recom-
mended by ttre Council.

(2) The registered person sholl be
eligible to opt under sub-section
(1), if-
(o) he is not engoged in the

supply of services other thon
supplies referred to in clouse
(b) of porogroph 6 of Schedule

;

(b) he is not engoged in moking
ony supply of goods which
ore not levioble to tox under
this Ac!

(c) he is not engoged in moking
ony inter- Stote outword
supplies of goods;

(d) he is not engoged in moking
ony supply of goods through
on electronic commerce
operotor who is required to
collect tox ot source under
sedion 52; ond

(e) he is not o monufodurer of
such goods os moy be
notified by the Government
on the recommendotions of
the Council:



10,

to such electronic commerce
operotor os if he is the supplier
lioble for poying the tox in relotion
to the supply of such services:

Provided *rot where on electonic
commerce operotor does not hove o
physicol presence in the toxoble
territory ony person representing such
electronic commerce operotor for ony
purpose in the toxoble territory sholl
be lioble to poy tox:

Provided further thot where on
electronic commerce operotor does
not hove o physicol presence in the
toxoble territory ond olso he does not
hove o representotive in the soid
territory, such electronic commerce
operotor sholl oppoint o person in the
toxoble territory for the purpose of
poying tox ond such person sholl be
lioble to poy tox.

10. (l) Notwithstonding onything to the
controry contoined in this Act but
subiect to the provisions of sub-
sections (3) ond (4) of section 9,
o registered person, whose
oggregote turnover in the
preceding finonciol yeor did not
exceed fifty lokh rupees moy opt
to poy, in lieu of the tox poyoble
by him, on omount colculoted ot
such rote os moy be prescribed,
but not exceeding,-

(o) one per cent oftheturnover
in Stote in cose of o
monufocfureL

(b) two ond o holf per cent. of
the turnover in Stote in cose
of persons engoged in
moking supplies referred to
in clouse (b) of porogroph 6
of Schedule ll, ond

Composition
levy.



(3)

104

oviaion turbine fuel, sholl be levieti
with effed lrom such dote os moy
be notified by the Government on
the recommendotions of the
Council.

The Government moy, on the
recommendotions of the Council,
by notifi cotion, specify cotegories
of supply o{ goods or seryices or
both, the tox on which sholl be
poid on reverse chorge bosis by
the recipient of such goods or
services or both ond oll the
provisions of this Act sholl opply
to such recipient os il he is the
person lloble lor poying the tox in
relotion to the supply of such
goods or services or both.

The Stote toaln iesFecl of the
supply of toxoble goods or
services or bofr by o supplier, who
is not registered, to o registered
person sholl be poid by such
person on reverse chorge bosis os
fre recipient ond ollthe provrsions
of this Act sholl opply to such
recipient os if he is ihe person
liobie ior poying the t':x ,n relstion
to the supply of s.,:l: ioocis or
servlces or coth.

The Governmer!, .,-.: .: Jn the
reccnrrnendotions ,- ' "),: Ir;acil,
by noti{icotion, speciFi r. :teqories
of services the tox o.l ir rro-Stote
supplies of which shollbe poid by
the electronic commerce The
operotor if such services ore
supplied through it, ond oll the
provisions ol this Act sholl opply

(4)

(s)



103

(o) o supply of goods ond not os
o supply of services; or

(b) o supply of services ond not
os o supply of goods.

8. The tox liobility on o composite or
o mixed supply sholl be
determined in the following
monner, nomely: -
(o) o composite supply

comprising two or more
supplies, one oI which is o
principol supply, sholl be
treoted os o supply of such
principol supply; ond

(b) o mixed supply comprising
two or more supplies sholl be
treoted os o supply of thot
porticulor sqpply which
onrocti the highest rote of
tox.

9. (l) Subiect to the provisions of sub-
section (2), there sholl be levied o
tox colled the Arunochol Prodesh
goods ond seMces tox on ollinro-
Stote supplies oi goods or
services or both, except on the
supply of olcoholic liquor for
humon consumption, on the volue
determined under section I 5 ond
ot such rotes, not exceeding
twenty per cent., os moy be
notified by fre Governmenton the
recommendotions of the Council
ond collected in such monner os
moy be prescribed ond sholl be
poid by the toxoble person.

(2) The Stote tox on the supply of
petroleum crude, high speed
diesel, motor spirit (commonly
known os petrol), noturol gos ond

Tox liobility
on composits
ond mixed
supplies.

Levy ond
collection



t02

exchonge, license, rentol,
leose or disposol mode or
ogreed to be mode lor o
considerotion by o person in
the course or furtheronce ol
business;

(b) import of services for o
considerotion whether or not
in the course or furtheronce
of business;

(c) the octivities specified in
Schedule l, mode or ogreed
to be mode without o
considerotion; ond

(d) the octivities to be treoted os
supply of goods or supply of
services os referred to in
Schedule ll.

(2) Notwithstonding onything con-
toined in subsedion (l ),-
(o) octivities or tronsoctions

specified in Schedule lll; or
(b) such octivities or tronso-

ctions undertoken by the
CenEol Government o Stote
Government or ony locol
outhority in which they ore
engoged os public outho-
rities, os moy be notified by
the Government on the
recommendotions of the
Council,

sholl be treoted neither os o
supply of goods nor o supply
ol services.

(3) Subject to the provisions ol
sub-seaions (l ) ond (2), the
Government moy, on the
recommendotions of the
Council, specifY, bY
notif icotion, the tronsoctions
thot ore to be treoted os -



l0l

lo be the proper officers for the
purposes of this Act, subiect to
such conditions os the
Government sho ll, on the
recommendotions of the Council,
by notificotion, specify.

(2) Subject to fie condilions specified
in the notificotion issued under
sub-seaion ( l),-
(o) where ony proper oflicer

issues on order under this
Act, he sholl olso issue on
order under the Centrol
Goods ond Services Tox Acq
os outtrorised by the soid Act
under intimotion to the
jurisdidionol officer of centrol
tox;

(b) where o proper officer under
the Centrol Goods ond
Services Tox Act hos initioted
ony proceedings on o subject
motter, no proceedings sholl
be initioted by the proper
officer under this Act on the
some subject motter.

(3) Any proceedings for rectificotion.
oppeol ond revision, wherever
opplicoble, ofony order possed by
on officer oppointed under this
Act, sholl not lie belore on officer
oppointed under the Centrol
Goods ond Services Tox Act.

CHAPTER - III

LEVYAND COLLECTION OF TAX

7. (l) For the purposes of this Act, the
expression "supply" includes--
(o) ollforms of supply of goods

or services or both such os
sole, tronsfer, borter,

officer in
certoin
circum-
stonces.

Scope of
supply.



s. 0)

(2)

(3)

(4)

6. (r)

100

functions ossigned to them, sholl
hove jurisdiction over the whole of
the Stote or where the Stote
Government so directs, over ony
locol oreo thereof, ond oll other
officers sholl, subject to such
condilions os moy be specified,
hwe jurisdidion over the whole of
the Stote or over such locol oreos
os the Commissioner moy, by
order, specify.

Subject to such conditions ond
lim;totions os the Commissioner
moy impose, on officer of Stote
tox moy exercise the powers ond
dischorge the duties conferred or
imposed on him under this Act.

An officer of Stote tox moy
exercise the powers ond
dischorge the duties conferred or
imposed under this Act on ony
other officer of Stote tox who is
subordinote to him.

The Commissioner moy, subject
to such conditions ond limitotions
os moy be specified in this beholf
by him, delegote his powers to
ony other officer who is
subordinote to him.

Notwithstonding o nyth ing
contoined in this section, on
Appellote Authority sholl not
exercise the powers ond
dischorge the duties conferred or
imposed on ony other officer of
Stote tox.

Wfiout prejudice to fre provisions

ofthisAct, the officers oppointed
under the Centrol Goods ond
Services Tox Act ore outhorised

Powers of
officers.

Aufrorisotion
of officers of
centrol tox
os proper



List is
indicotive

3 o{ 2005

99

CHAPTER.II
ADi/tINISTRATION

3. The Government sholl, by noti-
ficotion, oppoint the following
closses of officers for the
purposes of fris Act, nomely:-
(o) PrincipolCornmissioner

(b) Chief Commissioner of Sl:cte
lox,

(c) Commissioner of Stote tox

(d) Speciol Commissioners of
Stote bx,

(e) Additionol Commissioners of
Stote tox,

(0 Joint Commissioners of Stote
tox,

(S) DePuty Commissioners of
Stote tox,

(h) Assistont Commissioners oI
Stote tox, ond

(i) ony other closs of officers os
it moy deem fit:

Provided thot, the officers
oppointed under the Arunochol
Prodesh Volue Added Tox Act,2005
sholl be deemed to be the officers
oppointed under the provisions of this
Act.

4. (l ) The Government moy, in oddition
to the officers os moy be notified
under section 3,oppoint such
persons os it moy think fit to be
the officers under thisAct.

(2) The Commissioner sholl hove
iurisdiction over the whole of the
Stote, the Speciol Commissioner
ond on Additionol Commissioner
in respect of oll or ony of the

Officers
under this

Act

Appointment
d
officers.



0 r7)

0r8)

0 re)

0 20)

98

Aolid return" meons o return
furnished under subsection (l) of
seaion 39 on whicfr sell-ossessed
tox hos been poid in full;

loucher" meons on instrument
where there is on obligotion to
occept it os considerotion or port
considerotion for o supply oI
goods or services or both ond
where the goods or services or
both to be supplied or the
identities of their potentiol
suppliers ore either indicoted on
the instrument itself or in reloted
documentotion, including the
terms ond conditions oJ use of
such instrumenq

'lrorks controd" meons o controct
for building, construction,
fobricotion, completion, erection,
instollotion, Iitting out improve-
ment, modif icotion, repoir,
mointenonce, renovotion,
oherotion or commissioning of ony
immovoble property wherein
lronsfer of property in goods
(whether os goods or in some
other form) is involved in the
execution of such controct;
words ond expressions used ond

not delined in this Ad but defined
in the lntegroted Goods ond
Services Tox Act, the Centrol
Goods ond Services Tox Act, the
Union Territory Goods ond
Services Tox Ad ond the Goods
ond Services Tox (Compensotion

to Stotes) Act sholl hove the some
meonings os ossigned to them in
those Acts.



(ll3)

(lt4)

(11 s)

(il5)

97

person, exports oI goods or
services or both ond inter-Stote
supplies of goods or services or
both mode from the 9ole or Union
territory by the soid toxoble
person but excludes centrol tox,
Stote tox, Union territory tox,
integroted tox ond cess;

'trsuol ploce of residence"meons-
(o) in cose of on individuol, the

ploce where he ordinorily
resides;

(b) in other coses, the ploce
where the person is
incorporoted or otherwise
legolly constituted;

Union tenitory" meons tre tenitory
ol-
(o) the Andomon ond Nicobor

lslonds;

(b) Lokshodweep;

(c) Dodro ond Noqor Hoveli;

(d) Domon ond Diu;

(e) Chondigorh; ond

(f) other tenitory

Explonotion.-For lhe purposes of
this Act, eoch of the territories
specified in sub-clouses (o) to (f)
sholl be considered to be o
seporote Union territory
'ljnion territory tox" meons the
Union tenito.y goods ond services
bx levied under the Union Territory
Goods ond Services Tox Act;

'Union Territory Goods ond
Services Tox Act" meons the
Union Territory Goods ond
Services Tox Act, 20 I 7;



167

his volid return for the month in
which discreponcy is
communicoted sholl be odded to
the output tox liobility of the
supplier, in such monner os moy
be prescribed, in his return forthe
month succeeding the month in
which the discreponcy is
communicoted.

(6) The omount in respect of ony
reduction in outputtox liobility thot
is found to be on occount of
duplicotion of cloims sholl be
odded to the output tox liobility of
the supplier in his return for the
month in which such duplicotion
is communicoted.

(7) The supplier sholl be eligible to
reduce, from his output tox
liobility, the omount odded under
sub-section (5) if the recipient
declores the detoils of the credit
note in his volid return within the
time specified in sub-section (9)
of section 39.

(8) A supplier in whose output tox
liobility ony omount hos been
odded under sub-section (5) or
sub-section (6), sholl be lioble to
poy interest ot the rote specified
under sub,section (1) of section
50 in respea of the omount so
odded from the dote of such cloim
for reduction in the output tox
liobilily till the corresponding
odditions ore mode under the soid
sub-sections.

(9) Where ony redudion in ouFuttox
liobility is occepted under sub-
seoion (7), ttre interest poid under
sub-seaion (8) sholl be refunded
lo the supplier by crediting the



168

omount in the corresponding heod
of his electronic cosh ledger in
such monner os moy be
prescribed:

Provided thot the omount of
interest to be credited in ony cose
sholl not exceed the omount of
interest poid by the recipient.

(10) The omount reduced from output
tox liobility in controvention of the
provisions of sub-section (7) sholl
be odded to the output tox liobility
of the supplier in his return for the
month in which such controvention
tokes ploce ond such supplier
sholl be lioble to poy interest on
the omount so odded ot the rote
specified in sub-section (3) of
section 50.

zl4. (l ) Every registered person, otherthon
on lnput Service Distributor, o
person poying tox under section
5l or section 52. o cosuol toxoble
person ond o non-resident toxoble
person, sholl furnish on onnuol
relurn for every finonciol yeor
electronicolly in such form ond
monner os moy be prescribed on
or before the thirty-first doy of
December following the end of
such finonciolyeor.

(2) Every registered person who is
required to get his occounts
oudited in occordonce with the
provisions of sub-section (5) of
section 35 sholl fu rn ish,
electronicolly, the onnuol return
under sub-section (l ) olong with
o copy of the oudited onnuol
occounts ond o reconciliotion
stotement, reconciling the volue

Annuol
return.



45.

46.

47. (1)

(2)

t69

of supplies declored in the return
furnished for tre linonciolyeor with
the oudited onnuol fino ncio I

stotement, ond such other
porticulors os moy be prescribed.

Every registered person who is
required to furnish o return under
sub-section (l ) ofsection 39 ond
whose registrotion hos been
concelled sholl furnish o finol
return within three months of the
dote of concellotion or dote of
order of concellotion, whichever is
Ioter, in such form ond monner os
moy be prescribed.

Where o registered person foils
to furnish o return under section
39 or section 44 or section 45, o
notice sholl be issued requiring
him to furnish such return within
fifteen doys in such form ond
monner os moy be prescribed.

Any registered person who foils to
Iurnish the detoils ol outword or
inword supplies required under
section 37 or section 38 or returns
required under section 39 or
section 45 by the due dote sholl
poy o lote fee o{ one hundred
rupees for every doy during which
such foilure continues subject to
o moximum omount of five
thousond rupees.

Any registered person who foils to
furnish the return required under
section 44 by the due dote sholl
be lioble to poy o lote fee of one
hundred rupees for every doy dur-
ing which such foilure continues
subject to o moximum of on
omount colculoted ot o quorter
per cent. of his turnover in the
Stote.

Finol return

Notice to
refurn
defoulters

Levy of lote
fee.



48. (r)

(2)

(3)

170

The monner of opprovol of goods
ond services tox proctitioners, 6eir
eligibility conditions, duties ond
obligotions, monner of removol
ond other conditions relevont for
their functioning sholl be such os
mqy be prescribed.

A registered person moy outhorise
on opproved goods ond services
tox proctitioner to furnish the
detoils of outword supplies under
section 37, the detoils of inword
supplies under section 38 ond the
return under section 39 or section
44 or section 45in such monner
os moy be prescribed.

Notwithstonding o nyth ing
contoined in sub-section (2), the
responsibility for correctness of
ony porticulors furnished in the
relurn or other detoils filed by the
goods ond services tox
proctitioners sholl continue to rest
with the registered person on
whose beholf such return ond
detoils ore furnished.

CHAPTER.X

PAYMENT OF TAX

Every deposit mode towords tox,
interest, penolty, fee or ony other
omount by o person by internet
bonking or by using credit or debit
cords or Notionol Electronic Fund
Tronsfer or Reol Time Gross
Settlement or by such o*rer mode
ond subject to such conditions
ond restrictions os moy be
prescribed, sholl be credited to the
electronic cosh ledger of such
person to be mointoined in such
monner os moy be prescribed.

Goods ond
services
tox proctitio-
ners.

Poyment of
tox, inter
est, penolty
ond other
omounts.

4e. (r)



17t

(2) The input tox credit os self-
ossessed in the return of o
registered person sholl be credited
to his electronic credlt ledger, in
occordonce with sedion 4l; to be
mointoined in such monner os
moy be prescribed..

(3) The omount ovoiloble in the
electronic cosh ledger moy be
used for moking ony poyment
towords tox, interest, penolty,
fees or ony other omount poyoble
under the provisions of thisAct or
the rules mode thereunder in such
monner ond subject to such
conditions ond within such time
os moy be prescribed.

(4) The omount ovoiloble in the
electronic credit ledger moy be
used for moking ony poyment
towords output tox under thisAct
or under fre lntegroted Goods ond

Services Tox Act in such monner
ond subject to such conditions
ond within such time os moy be
prescribed.

(5) The omount of input tox credit
ovoiloble in the eledronic credit
ledger of the registered person on

occount of --
(o) integroted tox sholl first be

utilised towords poyment of
integroted tox ond the
omount remoining, if ony,
moy be utilised towords the
poyment of centrol tox ond
Stote tox, or os the cose moy
be, Union territorytox, in thot
order;



t72

(b) the centroltox shollfirst be
utilised towords poyment of
centrol tox ond the omount
remoining, if ony, moy be
utilised towords the poyment
of integroted tox;

(c) the Stote tox sholl first be
utilised towords poyment of
Stote tox ond the omount
remoining, if ony, moy be
utilised towords the poyment
of integroted tox;

(d) the Union territory tox sholl
first be utilised towords
poyment of Union territory
tox ond the omount
remoining, if ony, moy be
utilised towords the poyment
ol integroted tox;

(e) the centrol tox sholl not be
utilised towords poyment of
Stote tox or Union territory
tox; ond

(f) the Stote tox or Union territory
tox sholl not be utilised
towords poyment of centrol
tox.

(6) The bolonce in the electronic cosh
ledger or electronic credit ledger
ofter poyment of tox, interest,
penolty, fee or ony other omount
poyoble under thisAct or the rules
mode frereunder moy be refunded
in occordonce with the provisions
of section 54.

(7) All liobilities of o toxoble person
under this Act sholl be recorded
ond mointoined in on electronic
liobility register in such monner os
moy be prescribed.



173

(8) Every toxoble person sholl
dischorge his tox ond other dues
under this Act or the rules mode
thereunder in the following order,
nomely:-
(o) self-ossessed tox, ond other

dues reloted to returns ot
previous tox periods;

(b) self-ossessed tox, ond other
dues reloted to the return of
the current tox period;

(c) ony other omount poyoble
under this Act or the rules
mode thereunder including
the demond determined
under section 73 or section
74.

(9) Every person who hos poid the tox on
goods or services or both under this
Ad sholl, unless the controry is proved
by him, be deemed to hove possed on
the full incidence of such tox to the
recipient ol such goods or services or
both.

Explonotbn.-For the purposes olfris sec-
tion,

(o) the dote of credit to the occount
of the Government in the
outhorised bonk sholl be deemed
to be the dote of deposit in the
electronic cosh ledger;

(b) the expression,-
(i) 'tox dues"meons the tox poy-

oble under thisAct ond does
not include interest, fee ond
penolty; ond

(ii) 'bther dues"meons interest,
penolty, fee or ony other
omount poyoble under this
Act or the rules mode there-
under.



t74

Every person who is lioble to poy
tox in occordonce with the
provisions of this Act or the rules
mode thereunder, but foils to poy
the tox or ony port thereof to the
Government within the period
prescribed, sholl for the period for
which the tox or ony port thereof
remoins unpoid, poy, on his own,
interest ot such rote, not
exceeding eighteen per cent., os
moy be notified by the
Government on the recommen-
dotions ofthe Council.

The interest under sutssection (l )
sholl be colculoted, in such
monner os moy be prescribed,
from the doy succeeding the doy
on which such tox wos due to be
poid.

A toxoble person who mokes on
undue or excess cloim of input
tox credit under sub-section (10)
of section 42 or undue or excess
reduction in output tox liobility
under sub-section (10) of section
43, sholl poy interest on such
undue or excess cloim or on such
undue or excess reduction, os the
cose moy be, ot such rote not
exceeding twenty-{our per cent.,
os moy be notified by the
Government on the recommen-
,dotions of the Council.

Notwithstonding onything to the
controry contoined in thisAd, the
Government moy mondote,-

o deportment or estoblishment of
the Centrol Government or Stote
Government or

locol outhority; or

lnterest on
deloyed
poyment of
tox.

Tox deduc-
tion ot
source.

s0. (l )

(2)

(3)

sr. (1)

(o)

(b)



175

(c) Governmentologencies;or
(d) such persons or cotegory of

persons os moy be notified bythe
Government on the recommen-
dotions of the Council, (hereofter
in this section referred to os 'the
dedudor'), to deduct tox ot the
rote of one per cent. Irom the
poyment mode or credited to the
supplier (hereofter in this section
referred to os the deductee') of
toxoble goods or services or both,
where the totol volue of such
supply, under o controct, exceeds
two lokh ond fifty thousond rupees:

Provided thot no deduction sholl
be mode ifthe locotion ofthe supplier
ond the ploce oi supply is in o Stote
or Union territory which is different
from the Stote or, os the cose moy
be, Union territory of registrotion of
the recipient.

E xplo noti o n.-F or the purpose
of deduction of tox specified obove,
the volue of supply sholl be token os
the omount excluding the centroltox,
Stote tox, integroted tox ond cess
indicoted in the invoice.

(2) The omount deducted os tox
under this section sholl be poid
to the Government by the
deductor within ten doys ofter the
end of the month in which such
deduction is mode, in such
monner os moy be prescribed.

(3) The deductor sholl {urnish to the
deductee o certificote mentioning
therein the controct volue, rote of
deduction, omount deducted,
omount poid to the Government
ond such other porticulors in such
monner os moy be prescribed.



176

(4) ll ony deductor foils to furnish to
the deductee the certificote, ofter
deducting the tox ot source, within
five doys of crediting the omount
so deducted to the Government,
the deductor sholl poy, by woy of
o lote fee, o sum of one hundred
rupees per doy from the doy ofter
the expiry of such five doy period
until the foilure is rectified, subject
to o moximum omount of five
thousond rupees.

(5) The deductee sholl cloim credit,
in his electronic cosh ledger, ofthe
tox deducted ond reflected in the
return of the deductor furnished
under sub-section (3) of section
39, in such monner os moy be
prescribed.

(6) lf ony deductor foils to poy to the
Government the omount deduded
os tox under sub-section (l ), he
sholl poy interest in occordonce
with the provisions of sub-section
(1 ) of section 50, in oddition to the
omount of tox deducted.

(7) The determinotion of the omount
in defoult under this section sholl
be mode in the monner specified
in section 73 or sectionT4.

(8) The refund to the deductor or the
deductee orising on occount of
excess or erroneous deduction
sholl be deolt with in occordonce
with the provisions of section 54:

Provided thot no refund to the
deductor sholl be gronted, if the
omount deducted hos been credited
to the electronic cosh ledger of the
deductee.



t77

52. (l) Notwithstonding onything to the
controry contoined in this Act,
every e lectron ic commerce
operotor (hereqfter in this section
referred to os the 'bperotor'), not
being on ogent, sholl collect on
omount colculoted ot such rote
not exceeding one per cent., os
moy be notilied by the
Government on the recommen-
dotions of the Council, of the net
volue of toxoble supplies mode
through it by other suppliers
where the considerotion with
respect to such supplies is to be
collected by the operotor.

Exp lonotion.-F or the purposes

ol this sub-section, the expression
"net volue of tqxoble supplies" sholl
meon the oggregote volue oftoxoble
supplies ofgoods or services or both,
other thon services notified under
sub-section (5) of section 9, mode
during ony month by oll registered
persons through the operotor
reduced by the oggregote volue of
toxoble supplies returned to the
suppliers during the soid month.

(2) The power to collect the omount
specified in sub-section (l ) sholl
be without prejudice to ony other
mode of recovery from the
oPerotor.

(3) The omount collected under sub-
section (l) sholl be poid to the
Government by the operotor within

ten doys ofter the end of the month

in which such collection is mode,
in such monner os moy be
prescribed.

Collection of
tox ot
source.



t78

(4) Every operotor who collects the
omount specified in sub-section
(l) sholl furnish o stotement,
electronicolly, contoining the
detoils of outrrord supplies ol
goods or services or both effected
through it, including the supplies
of goods or services or both
returned through it, ond the
omount collected under sub-
sedion (1) during o month, in such
form ond monner os moy be
prescribed, within ten doys ofter
the end of such month.

(5) Every operotor who collects the
omount specified in sub-section
(l) sholl furnish on onnuol
stotement, electro n ico lly,
contoining the detoils o{ outword
supplies of goods or services or
both effeded through it, including
the supplies ol goods or services
or both returned through it, ond
the omount collected under the
so id sub-section during the
finonciol yeol in such form ond
monner os moy be prescribed,
before the thirty first doy of
December following the end of
such finonciolyeor.

(6) ll ony operotor ofter furnishing o
stotement under sub-section (4)
discovers ony omission or
incorred porticulors therein, other
thon os o result of scrutiny, oudit,
inspection or enforcement octivity
by the tox outhorities, he sholl
rectify such omission or incorrect
porticulors in the stotement to be
lurnished for the month during
which such omission or incorrect
porticulors ore noticed, subject to
poyment of interest, os specified
in sub-seaion ( l ) of section 50:



179

Provided thot no such
rectificotion of ony omission or
incorrect porticulors sholl be ollowed
ofter the due dote {or furnishing of
stotement for the month of September
following the end of the finonciol yeor
or the octuoldote offurnishing of the
relevont onnuol stotement, whichever
is eorlier.

(7) The supplier who hos supplied the
goods or services or both through
the operotor sholl cloim credit, in
his electronic cosh ledger, of the
omount collected ond refleded in
the stotement oI the operotor
furnished under sub-seaion (4), in
such monner os moy be
prescribed.

(8) The detoils of supplies lurnished
by every operotor under sub-
section (4) sholl be motched with
the corresponding detoils of
outword supplies furnished by the
concerned supplier registered
underthisAct in such monner ond
within such time os moy be
prescribed.

(9) Where the detoils of outword
supplies fumished bythe operotor
under sub-section (4) do not
motch with the corresponding
detoils furnished by the supplier
under section 37, the discreponcy
sholl be communicoted to both
persons in such monner ond
within such time os moy be
prescribed.

(10) The omount in respect of which
ony discreponcy is communicoted
under sub-section (9) ond whkh
is not rectified by the supplier in
his volid return or the operotor in



180

his stotement for the month in
which discreponcy is
communicoted, sholl be odded to
the output tox liobility of the soid
supplier, where the volue of
outword supplies furnished bythe
operotor is more thon the volue of
outword suppiies furnished bythe
supplier, in his return for the month
succeeding the month in which the
discreponcy is communicoted in
such monner os moy be
prescribed.

(l I ) The concerned supplier, in whose
outputtox liobility ony omount hos
been odded under sub-section
( 10), sholl poy the tox poyoble in
respect of such supply olong with
interest, ot the rote specilied
under sub-section (l ) of section
50 on the omount so odded from
the dote such tox wos due till the
dote ol its poyment.

(12) Any outhority not below the ronk
of Deputy Commissioner moy
serve o notice, either before or
during the course of ony
proceedings under this Act,
requiring the operotor to furnish
such detoils reloting to-
(o) supplies of goods or services

or both effected through such
operotor during ony period;
or

(b) stock of goods held by the
suppliers moking supplies
through such operotor in the
godowns or worehouses, by
whotever nome co lled,
monoged by such operotor
ond declored os odditionol
ploces of business by such
suppliers, os moy be
specified in the notice.



l8l

('13) Every operotor on whom o notice

hos been served under sub-
section (12) sholl furnish the
required informotion within fifteen

working doys o{ the dote of
service of such notice.

(14) Any person who foils to furnish
the informotion required by the
notice served under sub-section
(l2) sholl, without prejudice to

ony oction thot moy be token
under section 122, be lioble to o
penolty which moy extend to
twenty-five thousond rupees.

Explonotion.- Forthe purposes

of this section, the expression
'toncerned supplier"sholl meon the

supplier of goods or services or both

moking supplies through the
operotor.

53. On utilisotion of input tox credit ovoiled
under this Act for poyment of iox dues
under the lntegroted Goods ond
Services Tox Act in occordonce with
the provisions of sub-section (5) o{

section 49. os reflected in the volid
return furnished under sub-section (l )

of section 39. the omount collected os
Stote tox sholl stond reduced by on

omount equol to such credit so utilised

ond the Stote Government sholltronsfer

on omount equol to the omount so
reduced from the Stote tox occount to

the integroted tox occount in such

monner ond within such time os moy

be prescribed.

Tronsfer of
input tox
credit.



182

CHAPTER - XI

REFUNDS

54. (l) Any person cloiming refund ofony
tox ond interest, if ony, poid on
such tox or ony other omount poid
by him, moy moke on opplicotion
before the expiry of two yeors from
the relevont dote in such form ond
monner os moy be prescribed:

Provided thot o registered
person, cloiming refund of ony
bolonce in the electronic cosh ledger
in occordonce with the provisions of
sub-section (6) of section 49, moy
cloim such refund in the return
furnished under sedion 39 in such
monner os moy be prescribed.

(2) A speciolized ogency of the United
Notions Orgonizotion or ony
Multiloterol Finonciol lnstitution ond
Orgonizotion notitied under the
United Notions (Privileges ond
lmmunities) Act, 1947, Consulote or
Embossy of foreign counties or ony
other person or closs of persons,
os notified under sedion 55, entitled
to o refund of tox poid by it on inword
supplies of goods or services or
both, moy moke on opplicotion for
such refund, in such form ond
monner os moy be prescribed,
before the expiry of six months from
the lost doy of the quorter in which
such supply wos received.

(3) Subject to the provisions oI sub-
section (10), o registered person
moy cloim refund of ony unutilised
input tox credit ot the end of ony
tox period:

Refund of
tox.

46 oI 1947



r83

Provided thot no refund of
unutilised input tox credit sholl be
ollowed in coses other thon-

(i) zero-roted supplies mode without
poyment o, tox;

(ii) where the credit hos occumuloted
on occount of rote of tox on inputs
being higher thon the rote of tox
on output supplies (other thon nil
roted or fully exempt supplies),
except supplies of goods or
services or both os moy be notified
by the Government on the
recommendotions oI the Council:

Provided further ttrot no refund of
unutilised input tox credit sholl be
ollowed in coses where the goods
exported out of lndio ore subjected
to export duty:

Provided olso thot no refund of
input tox credit sholl be ollowed, if
the supplier of goods or services or
both cloims refund of the integroted
tox poid on such supplies.

(4) The opplicotion sholl be
occomponied by-
(o) such documentory evidence

os moy be prescribed to
estoblish hoto refund is due
to the opplicont; ond

(b) such documentory or other
evidence (including the
documents referred to in
section 33) os the opplicont
moy furnish to estoblish thot
the omount of tox ond
interest, if ony, poid on such
tox or ony otreromount poid
in relotion to which such



184

refund is cloimed wos
collected from, or poid by,
him ond the incidence ol
such tox ond interest hod not
been possed on to ony other
person:

Provided thot where the omount
cloimed os relund is less thon two
lokh rupees, it sholl not be necessory
for the opplicont to furnish ony
documentory ond other eviciences but
he moy file o declorotion, bosed on
the documentory or other evidences
ovoiloble with him, certifying thotthe
incidence of such tox ond interest
hod not been possed on to ony other
person.

(5) lf, on receipt of ony such
opplicotion, the proper officer is
sotisfied thot the whole or port of
the omount cloimed os relund is
refundoble, he moy moke on order
occordingly ond the omount so
determined sholl be credited to the
Fund refened to in section 57.

(6) Notwithsto nding o nyth ing
contoined in sub-section (5), the
proper officer moy, in the cose of
ony cloim lor refund on occount
of zeroroted supply of goods or
services or both mode by
registered persons, other thon
such cotegory of registered
persons os moy be notified by the
Government on the recommen-
dotions of the Council, refund on
o provisionol bosis, ninety per
cent. of the totol omount so
cloimed, excluding the omount of
input tox credit provisionolly
occepted, in such monner ond



185

subiect to such cond ition s,
limitotions ond sofeguords os moy
be prescribed ond thereofter moke
on order under sub-section (5)for
finolsettlement of the refund cloim
ofter due verificotion of documents
lurnished by the opplicont.

(7) The proper officer sholl issue the
order under sub-section (5) within
sixty doys from the dote of receipt
of opplicotion complete in oll
respects.

(8) Notwithstonding o nyth in 9
contoined in subsection (5), the
refundoble omount sholl, insteod
of being credited to the Fund, be
poid to the opplicont, if such
omount is relotoble to -
(o) refund of tox poid on zero-

roted supplies of goods or
services or both or on inputs
or input services used in
moking such zero-roted
supplies;

(b) refund of unutilised inputtox
credit under sub-section (3);

(c) refund oitox poid on o supply
which is not provided, either
wholly or portiolly, ond for
which invoice hos not been
issued, or where o refund
voucher hos been issued;

(d) refund oftox in pursuonce of
section 77;

(e) the tox ond interest, if ony,
or ony other omount poid by
the opplicont, if he hod not
possed on the incidence of
such tox ond interest to ony
other person; or



186

(f) the tox or interest borne by
such other closs of
oppliconts os the Govern-
ment moy, on the
recommendotions of the
Council, by notificotion,
specify.

(9) Notwithstonding onything to the
controry contoined in ony
judgment, decree, order or
direction of the Appellote Tribunol
or ony court or in ony other
provisions of this Act or the rules
mode thereunder or in ony other
lowJor the time being in force, no
refund sholl be mode except in
occordonce with the provisions of
sub-section (8).

(10) Where ony refund is due under
sub-section (3) to o registered
person who hos defoulted in
furnishing ony return or who is
required to poy ony tox, interest
or penolty, which hos not been
stoyed by ony court, Tribunol or
Appellote Authority by the
specified dote, the proper officer
moy-

(o) withhold poyment of refund
due until the soid person hos
furnished the return or poid
the tox, interest or penolty,
os the cose moy be;

(b) deduafrom the refund due,
ony tox, interest, penolty, fee
or ony other omount which
the toxoble person is lioble
to poy but which remoins
unpoid under this Act or
under the existing low.



187

Explonolon.-F or the purposes
of this sub-section, the expression
"specified dote" sholl meon the lost
dote ior filing on oppeol under this
Act.

(1 1) Where on order giving rise to o
refund is the subject motter oI on
oppeol or further proceedings or
where ony other proceedings un-
der this Act is pending ond the
Commissioner is of the opinion
thot gront of such refund is likely
to odversely offect the revenue in
the soid oppeol or other proceed-
ings on occount of molfeqsonce
or froud committed, he moy, ofter
giving the toxoble person on op-
portunity of being heord, withhold
the refund till such time os he moy
determine.

(12) Where o refund is withheld un-
der sub-section (l I ), the toxoble
person sholl, notwithstonding ony-
thing contoined in section 56, be
entitled to interest ot such rote
not exceeding six per cent. os
moy be notified on the recommen-
dotions of the Council, if os o re-
sult of the oppeol or further pro-
ceedings he becomes entitled to
refund.

(13) Notwithstonding onything to the
controry contoined in this section,
the omountofodvonce tox depos-
ited by o cosuol toxoble person
or o non-resident toxoble person
under sub-section (2) of section
27, sholl not be refunded unless
such person hos, in respect ofthe
entire period for which the certi{i-
cote of registrotion gronted to him
hod remoined in force, furnished
ollthe returns required under sec-
tion 39.



188

(14) Notwithstonding onything
contoined in this section, no
refund under sub-section (5) or
sub-section (6) sholl be poid to
on opplicont, if the omountis less
thon one thousond rupees.

Explonotion.- For the purposes of
this section,-

(1) 'tefund"includes refund oftox poid

on zeroroted supplies ofgoods or
services or both or on inputs or
input services used in moking
such zero-roted supplies, or
refund of tox on the supply of
qoods regorded os deemed
exports, or refund of unutilised
input tox credit os provided under
sub-section (3).

(2) 'televont dote"meons -
(o) in the cose of goods exported

out of lndio where o refund
of tox poid is ovoiloble in
respect of goods them-
selves or, os the cose moy
be, the inputs or in put
services used in suc h
goods,-
(i) ifthe goods ore exported

by seo or oir, the dote
on which the ship or the
oircroft in which such
goods ore looded,
leoves lndio; or

(ii) if the goods ore
exported by lond, the
dote on which such
goods poss the frontier;
d



189

(iii) if the goods ore exported
by post, the dote of
despotch of goods by
the Post Off ice
concerned to o ploce
outside lndio;

(b) in tfre cose ofsupply of goods
regorded os deemed exports
where o refund oftox poid is

ovoiloble in respect of the
goods, the dote on which the
return reloting to such
deemed exports is furnished;

(c) in the cose of services
exported out oi lndio where
o refund of tox poid is
ovoiloble in respect of
services themselves or, os
the cose moy be, the inputs
or input services used in
such services, the dote of--

(i) receipt of poyment in
convertible foreig n

exchonge, where the
supply of services hod
been completed prior to
the receipt of s uch
poyment; or

(ii) issue of invoice, where
poyment for the services
hod been received in
odvonce prior to the dote
ol issue of the invoice;

(d) in cose where the tox
becomes reJundoble os o
consequence of iudgment,
decree, order or direction of
the Appellote Authority,



46 ol 1947

r90

Appellote Tribunol or ony
court, the dote of communi-
cotion of such judgment,
decree, order or direction;

(e) in the cose ol refund oI
unutilised input tox credit
under sub-section (3). the
end of the finonciol yeor in
which such cloim for refund
orises;

(f) in the cose where tox is poid
provisionolly under this Act
or the rules mode
thereunder, the dote of
odjustment of tox ofter the
finol ossessment thereof;

(g) in the cose oi o person, other
thon the supplier, the dote of
receipt of goods or services
or both by such person; ond

(h) in ony other cose, the dote
of poyment of tox.

55. The Government moy, on the
recommendotions of the Council, by
notificotion, specify ony speciolized
ogency of the United Notions
Orgonizotion or ony Multiloterol
Finonciol lnstitution ond Orgonizotion
notified under the United Notions
(Privileges ond lmmunities) Act, 1947,
Consulote or Embossy of foreign
countries ond onyother person or closs
of persons os moy be specified in this
beholf, who sholl, subject to such
conditions ond restrictions os moy be
prescribed, be entitled to cloim o relund
oI toxes poid on the notified supplies
of goods or services or both received
by them.

Refund in
certoin
coses.



l9l

56. lf ony tox ordered to be refunded under
sub-section (5) of section 54 to ony
opplicont is not refunded within sixty
doys lrom the dote of receipt of
opplicotion under sub-section (l ) of
thot section, interest ot such rote not
exceeding six per cent. os moy be
specified in the notificotion issued by
the Government on the recommen-
dotions ofthe Council sholl be poyoble
in respect of such refund from the dote
immediotely ofter the expiry of sixty
doys from the dote of receipt of
opplicotion under the soid sub-section
till the dote of refund of such tox:

Provided thot where ony cloim of
refund orises from on order possed by
on odjudicoting outhority or Appellote
Authority orAppellote Tribunol or court
which hos ottoined finolity ond the
some is not re{unded within sixty doys
from the dote of receipt of opplicotion
filed consequent to such order, inter-
est ot such rote not exceeding nine
per cent. os moy be notified by the
Government on the recommendotions
of the Council sholl be poyoble in re-
spect ol such refund from the dqte
immediotely ofter the expiry of sixty
doys from the dote of receipt of oppli-
cotion tillthe dote of refund.

Explonotion.--For the purposes
of this section, where ony order of re-
fund is mode by on Appellote Author-
ity, Appellote Tribunol or ony court
ogoinst on order of the proper officer
under sub-sedion (5) of sedion 54, the
order possed by theAppellote Author-
ity, Appellote Tribunol or by the court
sholl be deemed to be on order possed

under the soid sub-section (5).

lnterest on
deloyed
refunds.



192

57. The Government sholl constitute o
Fund, to be colled the Consumer
Welfore Fund ond there sholl be
credited to the Fund,-
(o) the omount referred to in sub-

section (5) of section 54;

(b) ony income from investment of
the omount credited to the Fund;
ond

(c) such other monies received by
it, in such monner os moy be
prescribed.

58. (l) All sums credited to the Fund
sholl be utilised by the
Govemment for the welfore of tp
consumers in such monner os
moy be prescribed.

(2) The Governmentor the outhority
specified by it sholl mointoin
proper ond seporote occountond
other relevont records in relotion
to the Fund ond prepore on
onnuol stotement of occounts in

such form os moy be prescribed
in con su ltotio n with the
Comptroller ond Auditor Generol
of lndio.

CHAPTER- XII

ASSESSMENT

59. Every registered person sholl self-
ossess the toxes poyoble under this
Act ond furnish o return for eoch tox
period os specified under section 39.

60. (l ) Subiect to the provisions of sub-
section (2), where the toxoble
person is unoble to determine
the volue of goods or services or
both or determine the rote oftox
opplicoble thereto, he moy

Consumer
Welfore
Fund.

Utilisotion
of Fund.

Seff-
ossessment

Provisionol
ossess-
ment.



l9l

requestthe proper officer in writing
giving reosons for poyment of tox
on o provisionol bosis ond the
proper officer sholl poss on order,
witfrin o period not loterthon ninety
doys from the dote of receipt of
such request, ollowing poyment
ol tox on provisionol bosis ot such
rote or on such volue os moy be
specified by him.

(2) The poyment of tox on provisionol

bosis moy be ollowed, if the
toxoble person executes o bond
in such form os moy be
prescribed, ond with such surety
or security os the proper officer
moy deem fit, binding the toxoble
person for poyment of the
difference between the omount of
tox os moy be finolly ossessed
ond the omount of tox
provisionolly ossessed.

(3) The proper officer sholl, within o
period not exceeding six months
from the dote of the
communicotion of tre order issued
under sub-section (l ), poss the
finolossessment order ofter toking
into occount such informotion os
moy be required for linolizing the
ossessment:

Provided thot the period
specified in this sub-section moy,
on sufficient couse being shown
ond for reosons to be recorded in
writing, be extended by the Joint
Commissioner or Additionol
Commissioner for o furtlrer period

not exceeding six months ond by
the Commissioner for such further
period not exceeding four yeors.



(4)

(s)

6r. 0)

(2)

't94

The registered person sholl be
lioble to poy interest on ony tox
poyoble on the supply of goods
or services or both under
provisionol ossessment but not
poid on the due dote specified
under sub-section (7) of section
39 or the rules mode thereunder,
ot the rote specified under sub-
section (l ) of section 50, from the
first doy ofter the due dote of
poyment of tox in respect of the
soid supply of goods or services
or both till the dote of octuol
poyment, whether such omount is

poid before or ofter the issuonce
of order for {inol ossessment.

Where the registered person is

entitled to o re{und consequent to
the order of finol ossessment
under sub-section (3), subiect to
the provisions of sub-section (8)

of section 54, interest sholl be
poid on such refund os provided
in section 56.

The proper officer moy scrutinize
the return ond reloted porticulors
furnished by the registered person

to verify the correctness of the
return ond inJorm him of the
discreponcies noticed, if ony, in
such monner os moy be
prescribed ond seek his
explonqtion thereto.

ln cose the explonotion is found
occeptoble, the registered person
sholl be informed occordingly ond
no further oction sholl be token in
this regord.

Scrutiny of
returns.



(3)

62. (1)

\2)

195

ln cose no sotidoctory explonotion
isfurnished within o period of thirty
doys of being informed by the
proper officer or such further
period os moy be permitted by him
or where the registered person,
ofter occepting the discreponcies,
foils to toke the conective meosure
in his return for the month in which
the discreponcy is occepted, the
proper off icer moy initiote
oppropriote oaion including those
under sedion 65or section 66 or
section 67, or proceed to
determine the tox ond other dues
under sedion 73 or section 74.

Notwithstonding onything to the
controry contoined in section 73
or section 74, where o registered
person foils to iurnish the return
under section 39 or section 45,
even ofter the service of o notice
under seaion z16, tre proper officer
moy proceed to ossess the tox
liobility of the soid person to the
best of his judgement toking into
occount oll the relevont moteriol
which is ovoiloble orwhich he hos
gothered ond issue on
ossessment order within o period
of five yeors from the dote
specified under section 44 for
Iurnishing of the onnuol return for
the finonciol yeor to which the tox
not poid relotes.

Where the registered person
furnishes o volid return wihin hirty
doys of the service of the
ossessment order under sub-
section (l ), the soid ossessment
order sholl be deemed to hove
been withdrown but tre liobility for

Assessment
of nonfilers
of returns.



196

poyment of interest under sub-
section (l) of section 50 or lor
poyment of lote fee under section
47 sholl continue.

63. Notwithstonding onything to the
controry contoined in section 73 or
section 74,where o toxoble person foils
to obtoin registrotion even drough lioble
to do so or whose registrotion hos been
concelled under sub-section (2) of
section 29 but who wos lioble to poy
tox, the proper of{icer moy proceed to
ossess the tox liobility ol such toxoble
person to the best of his judgement for
the relevont tox periods ond issue on
ossessment order within o period offive
yeors from the dote specified under
section 44 for furnishing of the onnuol
return tor the finonciol yeor to which
the tox not poid relotes:

Provided thot no such ossessment
order sholl be possed withoutgiving the
person on opportunity of being heord.

64. (l) The proper officer moy, on ony
evidence showing o tox liobility of
o person coming to his notice,
with the previous permission of
Additionol Commissioner or J oint
Commissioner, proceed to ossess
the tox liobility of such person to
protect the interestof revenue ond
issue on ossessment order, if he
hos sufficient grounds to believe
thot ony deloy in doing so moy
odversely offect the interest of
revenue:

Provided thot where the toxoble
person to whom the liobility pertoins is
not oscertoinoble ond such liobility
pertoins to supply of goods, the person
in chorge of such goods sholl be

Assessment
of unregister-
ed persons.

Summory
ossessment
in certoin
speciol
coses.



t97

deemed to be the toxoble person lioble
to be ossessed ond lioble to poy tox
ond ony other omount due under this
section.

(2) On on opplicotion mode by the
toxoble person within thirty doys
from the dote of receipt of order
possed under sub-section (l ) or
on his own motion, if theAdditionol
Commissioner or J oint
Commissioner considers thot
such order is erroneous, he moy
withdrow such order ond follow the
procedure loid down in section 73
or section 74.

CHAPTER XIII

AUDIT

65. ('l) The Commissioner or ony officer
outhorised by him, by woy of o
generol or o specific order, moy
undertoke oudit of ony registered
person for such period, ot such
frequency ond in such monneros
moy be prescribed.

(2) The officers refened to in sub-
section (l ) moy conduct oudit ot
the ploce ol business ol the
registered person or in their office.

(3) The registered person sholl be
informed by woy of o notice not
less thon fifteen working doys
prior to the conduct of oudit in

such monner os moy be
prescribed.

(4) The oudit under sub-section (1)

sholl be completed within o period

of three months from the dote of
commencement of the oudit:

Audit by tox
outhorities



198

Provided thot where the
Commissioner is sotisfied thot oudit
in respect of such registered person
connot be completed within three
months, he moy, for the reosons to be
recorded in writing, extend the period
by o further period not exceeding six
months.

Explonotion.-For the purposes of this
sub-section, the expression'tomm-
encementof oudit"sholl meon the dote
on which the records ond other
documents, colled for by the tox
outhorities, ore mode ovoiloble by the
registered person or the octuol
institution of oudit ot the ploce of
business, whichever is loter.

(5) During the course of oudit, the
outhorised officer moy require the
registered person,

(i) to offord him the necessory
focility to verify the books of
occount or other documents
os he moy require;

(ii) to furnish such informotion
os he moy require ond
render ossistonce for timely
completion of the oudit.

(6) On conclusion of oudit, the proper
officer sholl, within thirty doys,
inform the registered person,
whose records ore oudited, obout
the findings, his rights ond
obligotions ond the reosons for
such findings.

(7) Where he oudit conducted under
sub-sedion (l ) results in detec-
tion of tox not poid or short poid
or erroneously refunded, or input
tox credit wrongly ovoiled or
utilised, the proper officer moy
initiote odion underseclion 73 or
section 74.



199

66. (l ) lf ot ony stoge of scrutiny, inquiry,
investigotion or ony other
proceedings before him, ony
officer not below the ronk of
Assistont Commissioner, hoving
regord to the noture ond
complexity of the cose qnd the
interest of revenue, is of the
opinion thot the volue hos not
been correctly declsred or the
credit ovoiled is not within the
normol limits, he moy, with the
prior opprovol oi the
Commissioner, direct such
registered person by o communi-
cotion in writing to get his records
including books of occou nt
exomined ond oudited by o
chortered occountont or o cost
occountont os moy be nominoted
by the Commissioner.

(2) The chortered occountont or cost
occountont so nominoted sholl,
within the period of ninety doys,
submit o report ol such oudit duly
signed ond certified by him to the
soid Assisto nt Commissioner
mentioning therein such other
porticulors os moy be specified:

Provided thot the Assistont
Commissioner moy, on on opplicotion
mode to him in this beholf by the
registered person or the chortered
occountont or cost occountont or for
ony moteriol ond sufficient reoson,
extend the soid period by o further
period of ninety doys.

(3) The provisions of sub-sedion (l )

sholl hove effect notwithstonding
thot the occounts of the registered

Speciol
oudit.



200

person hove been oudited under
ony other provisions of this Act or
ony other low for the time being in

force.

(4) The registered person sholl be
given on opportunityof being heord
in respect ofony moteriolgothered
on the bosis of specioloudit under
sub-section (l ) which is proposed
to be used in ony proceedings
ogoinst him under this Act or the
rules mode thereunder.

(5) The expenses of the exominotion
ond oudit of records under sub-
section ( 1 ), including the
remunerotaon of such chortered
occountont or cost occountont,
sholl be determined ond poid by
the Commissioner ond such
determinotion sholl be finol.

(6) Where the speciol oudit
conducted under sub-section (l)
results in detection ol tox not poid
or short poid or erroneously
refunded, or input tox credit
wrongly ovoiled or utilised, the
proper officer moy initiote oction
under section 73 or sectionT4.

CHAPTER - XIV

INSPECTION, SEARCH, SEIZURE AND

ARREST

67. ( l ) Where the proper officer, not below
the ronk of Joint Commissioner,
hos reosons to believe thot--

(o) o toxoble person hos
suppressed ony tronsoction
reloting to supply of goods
or services or both or the

Power of
inspection,
seorch ond
seizure.



201

stock o, goods in hond, or
hos cloimed input tox credit
in excess of his entitlement
under this Act or hos
indulged in controvention ol
ony of the provisions ol this
Act or the rules mode
tpreunder to evode tox under
this Act; or

(b) ony person engoged in the
business of tro nsporting
goods or on owner or
operotor ofo worehouse or o
godown or ony other ploce
is keeping goods which hove
escoped poyment of tox or
hos kept his occounts or
goods in such o monner os
is likely to couse evosion oI
tox poyoble under this Act,

he moy outhorise in writing
ony other officer of Stote tox
to inspect ony ploces of
business of the toxoble
person or the pe rsons
engoged in the business of
tronsporting goods or the
owner or the operotor of
worehouse or godown orony
other ploce.

(2) Where the proper officer, not below
the ronk of Joint Commissioner,
either pursuont to on inspection
corried out under sub-section ('l)
or otherwise, hos reosons to
believe thot ony goods lioble to
confiscotion or ony documents or
books or things, which in his
opinion sholl be useful for or
relevont to ony proceedings under
this Act, ore secreted in ony



202

ploce, he moy outhorise in writing
ony other officer of Stote tox to
seorch ond seize or moy himself
seorch ond seize such goods,
documents or books or things:

Provided thot where it is not
procticoble to seize ony such goods,
the proper officer, or ony officer
outhorised by him, moy serve on the
owner or the custodion ol the goods
on order thot he sholl not remove, port
with, or otherwise deolwith the goods
except with the previous permission of
such officer:

Provided furtherthot the documents or
books or things so seized sholl be
retoined by such oflicer onlylor so long
os moy be necessory for their
exominotion ond for ony inquiry or
proceedings under thisAct.
(3) The documents, books or things

refened to in sub-seaion (2) or ony
other documents, books or things
produced by o toxoble person or
ony other person, which hove not
been relied upon for the issue of
notice under this Act or the rules
mode thereunder, sholl be
returned to such person within o
period not exceeding thirty doys
of the issue of the soid notice.

(4) The oflicer outhorised under sub-
section (2) sholl hove the power
to seol or breok open the door of
ony premises orto breok open ony
olmiroh, eleckonic devices, box,
receptocle in which ony goods,
occounts, registers or documents
ofthe person ore suspected to be
conceoled, where occess to such
premises, olmiroh, electronic
devices, box or receptocle is
denied.



203

(5) The person from whose custody
ony documents ore seized under
sub-section (2) sholl be entitled to
moke copies thereo, or toke
extrocts frerefrom in the presence
of on outhorised officer ot such
ploce ond time os such officer
moy indicote in this behol{ except
where moking such copies or
toking such extrocts moy, in the
opinion of the proper offcer, preju-
d;ciolly offect the investigotion.

(6) The goods so seized under sub-
section (2) sholl be releosed, on
o provisionol bosis, upon
execution ofo bond ond iurnishing
of o security, in such monner ond
of such quontum, respedively, os
moy be prescribed or on poyment
of opplicoble tox, interest ond
penolty poyoble, os the cose moy
be.

(7) Where ony goods ore seized under
sub-section (2) ond no notice in
respect thereof is qiven within six
montlrs of the seizure ol the goods,
the goods sholl be returned to the
person from whose possession
they were seized:

Provided thot the period of six
months moy, on sufficient couse being
shown, be extended by the proper
officer {or o further period notexceeding
six months.

(8) The Government moy, hoving
regord to the perishoble or
hozordous noture of ony goods,
depreciotion in the volue of the
goods with the possoge of time,
constroints of storoge spoce for
the qoods or ony other relevont



2 at 197 4

204

considerqtions, by notificotion,
specify the goods or closs of
goods which shoil, os soon os
moy be ofter its seizure under sub-
section (2), be disposed of by the
proper officer in such monner os
moy be prescribed.

(9) Where ony goods, being goods
specified under sub-section (8),

hove been seized by o proper
officer, or ony officer outhorised by
him under sub.section (2), he sholl
prepore on inventory of such
goods in such monner os moy be
prescribed.

(10) The provisions of the Code of
Criminol Procedure, I 973, reloting
to seorch ond seizure, sholl, so
for os moy be, opplyto seorch ond
seizure under this section subject
to the modificotion thot sub-
section (5) of section 165 of the
soid Code sholl hove effect os if
for the word 'Mogistrote", wherever
it occurs, the word 'Commissi-
oner"were substituted.

(l I ) Where the proper officer hos
reosons to believe thot ony
person hos evoded or is
ottempting to evode the poyment
of ony tox, he moy, for reosons to
be recorded in writinq, seize the
occounts, registers or documents
of such person produced before
him qnd sholl gront o receipt for
the some, ond sholl retoin the
some for so long os moy be
necessory in connection with ony
proceedings under this Act or the
ru les mode thereunder for
prosecution.



fl2)

68.0)

(2)

(3)

205

The Commissioner or on officer
oulhorised by him moy couse
purchose ofony goods or services
or both by ony person outhorised
by him from the business
premises of ony toxoble person,
to check the issue of tox invoices
or bills of supply by such toxoble
person, ond on return of goods so
purchosed by such officel such
toxoble person or ony person in
chorge of the business premises
sholl refund the omount so poid
towords the goods ofter concelling
ony tox invoice or bill of supply
issued eorlier.

The Government moy require the
person in chorge of o conveyonce
corrying ony consignment of
goods of volue exceeding such
omount os moy be specified to
corry with him such documents
ond such devices os moy be
prescribed.

The detoils of documents required
to be corried under sub-section ( l)
sholl be volidoted in such monner
os moy be prescribed.

Where ony conveyonce referred to
in sub-section (l) is intercepted
by the proper officer ot ony ploce,
he moy require the person in
chorge of the soid conveyonce to
produce the docu ments
prescribed under the soid sub-
section ond devices for
verificotion, ond the soid person
sholl be lioble to produce the
documents ond devices ond olso
ollow the inspection of goods.

lnspection
of goods in
movement.



206

69. (l ) Where the Commissioner hos
reosons to believe thot o person
hos committed ony offence
specified in clouse (o) or clouse
(b) or clouse (c) or clouse (d) of
sub-section (l) of section 132
which is punishoble under clouse
(i) or (ii) of sub-sedion (l ), or sub
section (2) o{ the soid section, he
moy, by order, outhorise ony
officer of Stote tox to orrest such
person.

(2) Where o person is orrested under
sub-section (l) for on offence
specified under sub-sedion (5) of
section 132, the officer outhorised
to orrest the person sholl inform
such person of the grounds of
orrest ond produce him before o
Mogistrote within twenty four
hours.

(3) Subject to the provisions ol the
Code of Criminol Procedure,
1973,-
(o) where o person is orrested

under sub-section (l ) for ony
offence specif ied under
sub-section (4) of section
'132, he sholl be odmitted to
boil or in defoult of boil,
forworded to the custody of
the Mogistrote;

(b) in the cose of o non-
cognizo ble ond boiloble
offence, the Deputy Commi-
ssioner or the Assistont
Commissioner sholl, Ior the
purpose of releosing on
orrested person on boil or
otherwise, hove the some
powers ond be subject to the
some provisions os on
officer-in-chorge of o police
stotion

Power to
orrest.

2 oI 197 4



5 o{ 1908

45 of 1860

70. (l)

(2)

7r. (r)

(2)

207

The proper officer under this Act
sholl hove power to summon ony
person whose ottendonce he
considers necessory either to give
evidence or to produce o

document orony othertfring in ony
inquiry in the some monner, os
provided in the cose ofo civilcourt
under the provisions of the Code
of Civil Procedure, I 908.

Every such inquiry refened to in
sub-section ( l) sholl be deemed
to be o Judiciol proceedings"
within the meoning ol section 193
ond section 228 of the lndion
Penol Code.

Any olficer under this Act,
ou*rorised bythe proper officer not
below the ronk of Joint
Commissioner, sholl hove occess
to ony ploce ol business of o
registered person to inspect
books of occount, documents,
computers, computer progroms,
computer soltwore whether
instolled in o computer or
otherwise ond such other things
os he moy require ond which moy
be ovoiloble ot such ploce, for the
purposes of corrying outony oudit
scrutiny, verificotion ond checks
os moy be necessory to
sofeguord the interest ol revenue.

Every person in chorge of ploce
referred to in sub-sedion (l ) sholl,
on demond, moke ovoiloble to the
officer outhorised under sub-
section (l) or the oudit porty
deputed by the proper officer or o
cost occountont or chortered
occountont nominoted under
section 66 --

Power to
summon
persons to
give

evidence
ond
produce
documents

Access to
business
premises.



l8 of 20l 3

43 of I961

20E

(i) such records os prepored or
mointoined by the registered
person ond declored to the
proper off icer in such
monner os moy be
prescribed;

(ii) triol bolonce or its equivolent;

(iii) stotements of onnuol finonciol
occounts, duly oudited,
wherever required;

(iv) cost oudit report, if ony, under
section 148 of the
ComponiesAct, 2013;

(v) the income-tox oudit report,
if ony, under section 44AB
ofthe lncome-tox Act, 1961;
ond

(vi) ony other relevont record, for
the scrutiny by the officer or
oudit pofi or the chortered
occountont or cost occount-
ont within o period not
exceeding fifteen working
doys from the doy when
such demond is mode. or
such further period os moy
be ollowed by the soid oflicer
or the oudit porty or the
chortered occountont or cost
occountont.

72. (1) All officers of Police, Roilwoys,
Customs, ond those officers
engoged in the collection of lond
revenue, including villoge officers,
officers of centrol tox ond officers
o{ the Union territory tox sholl
ossist the proper officers in the
implementotion of this Act.

Officers to
ossist proper
officers.



73. (r)

(2)

(3)

209

(2) The Government moy, by
notificotion, empower ond require
ony other closs of oflicers to ossist
the proper officers in the
implementotion of this Act when
colled upon to do so by the
Commissioner.

CHAPTER. XV

DEMANDS AND RECOVERY

Where it oppeors to the proper
officer thot ony tox hos not been
poid or short poid or erroneously
refunded, or where inputtox credit
hos been wrongly ovoiled or
utilised lor ony reoson, other thon
the reoson of froud or ony wilful
misstotement or suppression ol
focts to evode tox, he sholl serve
notice on the person chorgeoble
with tox which hos not been so
poid or which hos been so short
poid or to whom the refund hos
erroneously been mode, or who
hos wrongly ovoiled or utilised
input tox credit, requiring him to
show couse os to why he should
not poy the omount specified in
the notice olong with interest
poyoble thereon under section 50
ond o penolty levioble under the
provisions of this Act or the rules
mode thereunder.

The proper officer sholl issue the
notice under sub-section (l) ot
leost three months prior to the
time limit specified in sub-section
(10)for issuonce of order.

Where o notice hos been issued
for ony period under sub-section
(l ), the proper officer moy serve o

DebminotiJn
of tox not
poid or short
poid or
erroneously
refunded or
input tox
credit
wrongly
ovoiled or
utilised
for ony
reoson other
thon froud or
ony wilful
misstote-
ment or
suppression
of focts.



2to

stotement, contoining the detoils
of tox not poid or short poid or
erroneously reiunded or input tox
credit wrongly ovoiled or utilised
for such periods other thon those
covered under sub-sedion ( l ), on
the person chorgeoble with tox.

(4) The service of such stotement
sholl be deemed to be service of
notice on such person under sub-
section (l), subiect to the
condition thot the grounds relied
upon {or such tox periods other
thon those covered under sub-
section (l ) ore the some os ore
mentioned in the eorlier notice.

(5) The person chorgeoble with tox
moy, before service of notice
under sub-section (l ) or, os the
cose moy be, the stotement under
sub-section (3), poy the omount
ol tox olong with interest poyoble
thereon under section 50 on the
bosis of his own oscertoinment of
such tox or the tox os oscertoined
bythe proper officerond in{orm the
proper oflicer in writing of such
poyment.

(6) The proper officer, on receipt of
such informotion, sholl not serve
ony notice under sub-section (l )
or, os the cose moy be, the
stotement under sub-section (3),
in respect ol the tox so poid or
ony penolty poyoble under the
provisions of this Act or the rules
mode thereunder.

(7) Where the proper officer is of the
opinion thottheomount poid under
sub-section (5) folls short of the
omount octuolly poyoble, he sholl



2tt
proceed to issue the notice os
provided for in sub-section (l ) in
respect of such omount which
folls short of the omount octuolly
poyoble.

(8) Where ony person chorgeoble wi*r
tox under sub-section (l ) or sub-
section (3) poys the soid tox olong
with interest poyoble under
section 50 within thirty doys of
issue of show couse notice, no
penolty sholl be poyoble ond oll
proceedings in resped of the soid
notice sholl be deemed to be
concluded.

(9) The proper officer sholl, ofter
considering the representotion, if
ony, mode by person chorgeoble
with tox, determine the omount of
tox, interest ond o penolty
equivolent to ten per cent.of tox
or ten tlousond rupees, whichever
is higher, due from such person
ond issue on order.

(10) The proper officer sholl issue the
order under sub-sedion (9) within
three yeors lrom the due dote for
furnishing of onnuol return for the
finonciol yeor to which the tox not
poid or short poid or input tox
credit wrongly ovoiled or utilised
relotes to or within three yeors
from the dote oferroneous refund.

(ll) Notwithstonding onything
contoined in sub-section (6) or
sub-section (8), penolty under
sub-section (9) sholl be poyoble
where ony omount of self-
ossessed tox or ony omount
collected os tox hos not been poid
within o period of thirty doys from
the due dote of poyment of such
tox.



74. (1)

(2)

(3)

(4)

212

Where it oppeors to the proper of-
ficer thot ony tox hos not been
poid or short poid or erroneously
refunded or where input tox credit
hos been wrongly ovoiled or
utilised by reoson offroud, orony
wilful misstotement or suppres-
sion of focts to evode tox, he sholl
serve notice on the person
chorgeoble with tox which hos not
been so poid or which hos been
so short poid or to whom the re-
fund hos erroneously been mode,
or who hos wrongly ovoiled or
utilised input tox credit, requiring
him to show couse os to why he
should not poy the omount speci-
fied in the notice olong with inter-
est poyoble thereon under section
50 ond o penolty equivolent to the
tox specified in the notice.

The proper officer sholl issue the
notice under sub-section (l) ot
leost six months prior to the time
limit specified in sub-section (10)
for issuonce of order.

Where o notice hos been issued
for ony period under sub-section
(l ), the proper officer moy serve o
stotement, contoining the detoils
of tox not poid or short poid or
erroneously refunded or input tox
credit wrongly ovoiled or utilised
for such periods other thon those
covered under sub-section (l ), on
the person chorgeoble with tox.

The service of stotement under
sub-section (3) sholl be deemed
to be service of notice under sub-
section (l)of section 73, subject
to the condition thot the grounds

Determino-
tion of tox
not poid or
short poid or
erroneously
refunded or
input tox
credit
wrongly
ovoiled or
utilised by
reoson of
froud or ony
wilful
misstote-
ment or
suppression
of focts.



2t3

relied upon in the soid stotement,
except the ground offroud, or ony
wilf ulmisstotement or suppression
of focts to evode tox, for periods
other thon those covered under
sub-section (1) ore the some os
ore mentioned in the eorlier notice.

(5) The person chorgeoble with tox
moy, before service of notice
under sub-section (l), poy the
omount of tox olong with interest
poyoble under section 50 ond o
penolty equivolent to fifteen per
cent. of such tox on the bosis of
his own oscertoinmentof such tox
or the tox os oscertoined by the
proper officer ond inlorm the proper
officer in writing of such poyment.

(6) The proper officer, on receipt of
such informotion, sholl not serve
ony notice under sub-section (l ),
in respect of the tox so poid or
ony penolty poyoble under the
provisions of thisAct or the rules
mode thereunder.

(7) Where the proper officer is of the
opinion thotthe omount poid under
sub-section (5) {olls short of the
omount octuolly poyoble, he sholl
proceed to issue the notice os
provided for in sub-section ( l ) in
respect of such omount which
folls short of the omount octuolly
poyoble.

(8) Where ony person chorgeoblewith
tox under sub-sedion (l ) poys the
soid tox olong with interest
poyoble under section 50 ond o
penolty equivolent to twenty five
per cent of such tox within thirty
doys of issue of the notice, oll



2ll
proceedings in respect ofthe soid
notice sholl be deemed to be
concluded.

(9) The proper officer sholl, ofter
considering the representotion, if
ony, mode by the person
chorgeoble witir tox, determine the
omount of tox, interest ond
penolty due from such person ond
issue on order.

(10) The proper officer sholl issue the
order under sub-section (9) within
o period of five yeors from the due
dote for furnishing of onnuolreturn
for the finonciol yeor to which the
tox not poid or short poid or input
tox credit wrongly ovoiled or
utilised relotes to or within five
yeors from the dote of erroneous
refund.

(l I ) Where ony person served with on
order issued under sub-sedion (9)
poys the tox olcrg with interest
poyoble thereon under section 50
ond o penolty equivolent to fifty per
cent of such tox within thirty doys
of communicotion of the order, oll
proceedings in resped of the soid
notice sholl be deemed to be
concluded.

Explonotion l.- For the purposes of
section 73 ond this section, -

(i) the expression 'bll proceed-
ings in respect of the soid
notice"sholl not include pro
ceedings under section 132;

(ii) where the notice under the
some proceedings is issued
to the moin person lioble to
poy tox ond some other
persons, ond such procee-
dings ogoinst the moin



21,

person hwe been concluded
under section 73 or section
74, the proceedings ogoinst
oll the persons lioble to poy
penolty under sedions l 22,
125, 129 ond 130 ore
deemed to be concluded.

Explonotion 2.-For the purposes
ol this Act, the expression
"suppression" sholl meon non-
declorotion of focts or informotion which
o toxoble person is required to declore
in the return, stotement, report or ony
ofrer document fumished under this Act
orthe rules mode thereunder, orfoilure
to furnish ony informotion on being
osked for, in writing, by the proper
officer.

7s. (l)

(2)

Where the service oI notice or
issuonce of order is stoyed by on
order oi o court or Appellote
Tribunol, the period of such stoy
sholl be excluded in computing
the period specified in sub-
sections (2) ond (10) of section
73 or sub-sedions (2) ond (10) of
section 74, os the cose moy be.

Where onyAppellote Authority or
Appellote Tribunol or court
concludes thot the notice issued
under sub-section (l ) of section
74 is not sustoinoble for the
reoson thot the chorges ol froud
or ony wilful misstotement or
suppression of focts to evode tox
hos not been estoblished ogoinst
the person to whom the notice wos
issued, the proper officer sholl

Generol
provisions
reloting to
deErminolbn
of tox.



216

determine thetox poyoble by such
person, deeming os if the notice
were issued under sub-seaion (l )
of section 73.

(3) Where ony order is required to be
issued in pursuonce of the
direction o{ the Appellote Authority
or Appellote Tribunol or o court,
such order sholl be issued within
two yeors from the dote of
commu n icotion of the soid
direction.

(4) An opportunity of heoring sholl be
gronted where o request is
received in writing from the person

chorgeoble with tox or penolty, or
where ony odverse decision is

contemploted ogoinst suc h
person.

(5) The proper officer sholl, i{ sufficient
couse is shown by the person
chorgeoble with tox, gronttime to
the soid person ond odjourn the
heoring for reosons to be recorded

in writing:

Provided thot no such odiournment sholl
be gronted for more thon three times
to o person during the proceedings.

(6) The proper officer, in his order,
sholl setout the relevontfocts ond
the bosis of his decision.

(7) The omount of tox, interest ond
penolty demonded in the order
sholl not be in excess of the
omount specified in the notice ond
no demond sholl be confirmed on
the grounds other thon the
grounds specified in the notice.



217

(8) Where the Appellote Authority or
Appellote Tribunol or court
modifies the omount of tox
determined by the proper oflicer,
the omountof interest ond penolty
sholl stond modified occordingly,
toking into occount the omount o{
tox so modilied.

(9) The interest on the tox short poid
or not poid sholl be poyoble
whether or not specified in the
order determining the tox liobility.

('10) The odjudicotion proceedings sholl
be deemed to be concluded, if the
order is not issued within three
yeors os provided for in sub-
section (10) of section 73 orwithin
five yeors os provided for in
subsection ( l0) of section 74.

(l I ) An issue on which the Appellote
Authority or the Appellote Tribunol
or the High Court hos given its
decision which is prejudiciol to the
interest of revenue in some other
proceedings ond on oppeol to the
Appellote Tribunol or the High
Court or the Supreme Court
ogoinst such decision of the
Appellote Authority or the
Appellote Tribunol or the High
Court is pending, the period spent
between the dote ol the decision
of the Appellote Authority ond thot
of the Appellote Tribunol or the
dote oJ decision of the Appellote
Tribunolond thot of the High Court
or the dote of the decision of the
High Court ond thot ol the
Supreme Court sholl be excluded
in computing the period referred



218

to in sub-section (10) ol section
73 or sub-section (10) of section
74 where proceedings ore initioted
by woy of issue of o show couse
notice under the soid sections.

(12) Notwithstonding onything
contoined in section 73 or section
74, where ony omount of self-
ossessed tox in occordonce with
o return furnished under section
39 remoins unpoid, either wholly
or portly, or ony omountof interest
poyoble on such tox remoins
unpoid, the some sholl be
recovered under the provisions of
section 79.

(13) Where ony penolty is imposed
under section 73 or section 74,
no penolty lor the some oct or
omission sholl be imposed on the
some person under ony other
provision ol this Act.

76. (l) Notwithstonding onything to the
controry contoined in ony order or
direction of ony Appellote
Authority orAppellote Tribunol or
court or in ony other provisions of
this Act or the rules mode
thereunder or ony other lowfor the
time being in force, every person
who hos collected from ony other
person ony omount os
representing the tox under this
Act, ond hos not poid the soid
omount to the Government, sholl
forthwith poy the soid omount to
the Government, irrespective of
whether the supplies in respect of
which such omount wos collected
ore toxoble or not.

Tox
collected
but not poid
to Govern-
ment.



2t9

(2) Where ony omount is required to
be poid to the Government under
subsedion (l), ond which hos not
been so poid, the proper officer
moy serve on the person lioble to
poy such omount o notice
requiring him to show couse os
to why the soid omount os
specified in the notice, should not
be poid by him to the Government
ond why o penolty equivolent to
the omount specified in the notice
should not be imposed on him
under the provisions of this Act.

(3) The proper olficer sholl, olter
considering the representotion, if
ony, mode by the person on whom
the notice is served under sub-
section (2), determine the omount
due from such person ond
thereupon such person sholl poy
the omount so determined.

(4) The person relerred to in sub-
section (l) sholl in oddition to
poying the omount re{erred to in
sub-section (l ) or subsection (3)

olso be lioble to poy interest
thereon otthe rote specified under
section 50 from the dote such
omount wos collected by him to
the dote such omount is poid by
him to the Government.

(5) An opportunity of heoring sholl be
gronted where o request is
received in writing from the person
to whom the notice wos issued to
show couse.

(6) The proper officer sholl issue on
orderwithin one yeorlrom the dote
of issue of the notice.



(7)

(8)

(e)

( l0)

(il)

77. (1)

220

Where the issuonce of order is

stoyed by on order of the court
orAppellote Tribunol, the period

of such stoy sholl be excluded
in computing the period of one
yeor.

The proper officer, in his order,
sholl set out the relevont focts
ond the bosis of his decision.

The omount poid to the Govern-
ment under sub-section (l ) or
sub-section (3) sholl be odjusted
ogoinst the tox poyoble, if ony,
by the person in relotion to
the supplies referred to in
sub-section (l).

Where ony surplus is left ofter
the odiustment under sub-sec-
tion (9), the omount o{ such
surplus sholl either be credited
to the Fund or refunded to
the person who hos borne the
incidence of such omount.

The person who hos borne the
incidence of the omount, moy
opplyfor the refund of the some
in occordonce with the
provisions of section 54.

A registered person who hos
poid the centrol tox ond Stote
tox on o tronsoction considered
by him to be on intro-Stote
supply, but which is
subsequently held to be on
inter-Stote supply, sho ll be
refunded the omount oftoxes so
poid in such monner ond
subject to such conditions os
moy be prescribed.

Tox
wrongfully
collected
ond poid to
Centrol
Govemment
or Stote
GovemrnenL



221

(2) A registered person who hos poid

integroted tox on o tronsoction
considered by him to be sn inter-
Stote supply, but which is
subsequently held to be on intro-
Stote supply, sholl not be required
to poy ony interest on the omount
of Stote tox poyoble.

78. Any omount poyoble by o toxoble
person in pursuonce of on order
possed under this Act sholl be poid
by such person within o period ofthree
monthsfrom the dote of service of such
order f oiling which recovery
proceedings sholl be initioted:

Provided thot where the proper
officer considers it expedient in the
interest of revenue, he moy, for reosons
to be recorded in writing, require the
soid toxoble person to moke such
poyment within such period less thon
o period of three months os moy be
specified by him.

79. (1) Where ony omount poyoble by o
person to the Government under
ony of the provisions of this Act
or the rules mode thereunder is
not poid, the proper officer sholl
proceed to recoverthe omount by
one or more of the following
modes, nomely :--

(o) the proper officer moy deduct or
moy require ony other specified
officer to deduct the omount so
poyoble from ony money owing
to such person which moy be
under the control of the proper
officer or such other specified
officer ;

lnitiotion of
recovery
proceedings.

Recovery of
tox.



222

(b) the proper oflicer moy recover or
moy require ony other specified
officer to recover the omount so
poyoble by detoining ond selling
ony goods belonging to such
person which ore under the
control of the proper officer or
such other specified officer;

(c) (i) the proper officer moy, by o
notice in writing, require ony
other person from whom
money is due or moy
become due to such person
or who holds or moy sub-
sequently hold money for or
on occount of such person,
to poy to the Government
either forthwith upon the
money becoming due or
being held, orwithin the time
specified in the notice not
being before the money
becomes due or is held, so
much of the money os is
sufficient to poy the omount
due from such person or the
whole of the money when it
is equol to or less thon thot
omount ;

(ii) every person to whom the
notice is issued under sub-
clouse (i) sholl be bound to
comply with such notice,
ond in porticulol where ony
such notice is issued to o
post office, bonking com-
pony or on insurer, it sholl
not be necessory to produce
ony poss book, deposit
receipt, policy or ony other
document for the purpose of
ony entry endorsement or



223

the like being mode before
poyment is mode, notwith-
stonding ony rule, proctice
or requirement to the
controry ;

(iii) in cose the person to whom
o notice under sub-clouse (i)
hos been issued, foils to
moke the poyment in
pursuonce thereof to the
Government, he sholl be
deemed to be o defoulter in
respect of the omount
specified in the notice ond oll
the consequences of thisAd
ortre rules mode frereunder
shqll follow;

(iv) the officer issuing o notice
under sub-clouse (i) moy, ot
ony time, omend or revoke
such notice or extend the
time for moking ony poyment
in pursuonce of the notice;

(v) ony person moking ony
poyment in complionce with
o notice issued under sub-
clouse (i) sholl be deemed
to hove mode the poyment
under the outhority of the
person in defoult ond such
poyment being credited to
the Government sholl be
deemed to constitute o good
ond sufficient dischorge of
the liobility of such person to
the person in deloult to the
extent of the omount
specified in the receipt;

(vi) ony person dischorging ony
liobility to the person in
defoult ofter service on him



224

of the notice issued under
sub-clouse (i) sholl be
personolly lioble to the
Government to the extent of
the liobility dischorged or to
the extent of the liobility of
the person in defoult for tox,
interest ond penolty,
whichever is less;

(vii) where o person on whom o

notice is served under sub-
clouse (i) proves to the
sotisfoction of the officer
issuing the notice thot the
money demonded or ony
port thereof wos not due to
the person in defoult or thot
he did not hold ony money
for or on occount of the
person in defoult, ot the time
the notice wos served on
him, nor is the money
demonded or ony port
thereof, likely to become due
to the soid person or be held
for or on occount of such
person, nothing contoined in
this section sholl be deemed
to require the person on
whom the notice hos been
served to poy to the
Government ony s uch
money or port thereof;

(d) the proper officer moy, in
occordonce with the rules to
be mode in this beholf,
distroin ony movoble or
immovoble property
belonging to or under the
control of such person, ond
detoin the some until the
omount poyoble is poid ; ond



225

in cose, ony port of the soid
omount poyoble or of the
cost of the distress or
keeping of the property,
remoins unpoid for o period
of thirty doys next ofter ony
such distress, moy couse
the soid property to be sold
ond with the proceeds of
such sole, moy sotisfy the
omount poyoble ond the
costs including cost of sole
remoining unpoid ond sholl
render the surplus omount,
if ony, to such person;

(e) the proper officer moy
prepore o certificote signed
by him s pec ifying the
omount due from such
person ond send it to the
Collector of the district in
which such person owns
ony property or resides or
corries on his business or to
ony officer outhorised by the
Government ond the soid
Collector or the soid officer,
on receiptol such certificote,
sholl proceed to recover from
such person the omount
specified thereunder os if it
were on orreor of lond
revenue;

(f) Notwithstonding onything
contoined in the Code of
Criminol Procedure, 1973,
the proper officer moy lile on
opplicotion to *re oppropriote
Mogistrote ond such
Mogistrote sholl proceed to
recover from such person
the omount specified
thereunder os if itwere o fine
imposed by him.

2 of 197 4.



226

(2) Where the terms of ony bond or
other instrument executed under
thisAct or ony rules or regulotions
mode thereunder provide thot ony
omount due under such
instrument moy be recovered in
the monner loid down in sub-
section (l), the omount moy,
without preiudice to ony other
mode of recovery be recovered in
occordonce with the provisions of
thot sub-section.

(3) Where ony omount ol tox, interest
or penolty is poyoble by o person
to the Government under ony of
the provisions of this Act or the
rules mode thereunder ond which
remoins unpoid, the proper officer
of centrol tox, during the course
of recovery of soid tox orreors,
moy recover the omount from the
soid person os if itwere on orreor
of centrol tox ond credit the
omount so recovered to the
occount of the Government.

(4) Where the omount recovered
under subsection (3) is less thon
the omount due to the Centrol
Government ond Stote
Government, the omount to be
credited to the occount of the
respective Governments sholl be
in proportion to the omount due
to eoch such Government.

80. On on opplicotion filed by o toxoble
person, the Commissioner moy, for
reosons to be recorded in writing,
extend the time for poyment or ollow
poyment of ony omount due under this
Act, other thon the omount due os per
the liobility self- ossessed in ony return,

Poyment of
tox ond
other
omount in
instolments



)17

by such person in monthly instolments
not exceeding twenty Iour, subiect to
poyment of interest under section 50

ond subiect to such conditions ond
limitotions os moy be prescribed:

ftovided trot where trere is defouh
in poyment of ony one instolment on
its due dote, the whole outstonding
bolonce poyoble on such dote sholl
become due ond poyoble forthwith ond
sholl, without ony further notice being
served on the person, be lioble for
recovery.

81 . Where o person, ofter ony omount hos
become due from him, creotes o
chorge on or ports with the property
belonging to him or in his possession
by woy of sole, mortgoge, exchonge,
or ony other mode of tronsfer
whotsoever of ony of his properties in
fovour of ony other person with the
intention of defrouding he Government
revenue, such chorge or tronsfer sholl
be void os ogoinst ony cloim in respect
of ony tox or ony other sum poyoble
by the soid person:

Provided thot, such chorge or
tronsfer sholl not be void if it is mode
for odequote considerotion, in good
foith ond without notice of the
pendency of such proceedings under
this Act or without notice ol such tox
or other sum poyoble by the soid
person, or with the previous permission

of the proper officer.

82. Notwithstonding onything to the controry
contoined in ony low for the time being
in force, sove os otherwise provided in
the lnsolvency ond Bonkruptcy Code,
2016, ony omount poyoble by o toxoble
person or ony other p€rson on occount

30 of 2016

Tronsfer of
property
to be void in
certoin
coses.

Tox to be first
chorge on
property



228

of tox, interest or penolty which he is
lioble to poy to the Government sholl
be o firstchorge on the property of such
toxoble person or such person.

83. (l ) Where during the pendency of ony
proceedings under section 62 or
section 63 or sedion 64 or section
67 or section 73 or section 74, the
Commissioner is of the opinion
thot for the purpose of protecting
the interest of the Government
revenue, it is necessory so to do,
he moy, by order in writing ottoch
provisionolly ony property,
including bonk occount, belonging
to the toxoble person in such
monner os moy be prescribed.

(2) Every such provisionol ottochment
shollceose to hove effect ofterthe
expiry ofo period of one yeorfrom
the dote of the order mode under
sub-section (l ).

84. Where ony notice of demond in
respect of ony tox,penolty,
interest or ony other omount
poyoble under this Ad, (hereofter

'in this section referred to os
'Government dues'), is served
upon ony toxoble person or ony
other person ond ony oppeol or
revision opplicotion is filed or ony
other proceedings is initioted in
respect of such Government
dues, then--
(o) where such Government

dues ore enhonced in such
oppeol, revision or other
proceedings, the
Commissioner sholl serve
upon the toxoble person or
ony other person onother

Provisionol
oftochment
to
protect
revenue in
certoin
coses.

Continuotion
ond
volidotion of
certoin
recovery
proceedings.



229

notice of demond in respect
of the omount by which such
Government dues ore
enhonced ond ony recovery
proceedings in relotion to
such Government dues os
ore covered by the notice of
demond served upon him
before the disposol of such
oppeol, revision or other
proceedings moy, without the
service of ony fresh notice of
demond, be continued from
the stoge ot which such
proceedings stood imme-
diotely beiore such disposol ;

(b) where such Government
dues ore reduced in such
oppeol, revision or in other
proceedings-
(i) it sholl not be necessory

for the Commissioner to
serve upon the toxoble
person o fresh notice of
demond;

(ii) the Commissioner sholl
give intimotion of such
reduction to him ond to
the oppropriote outhority
with whom recovery
proceedings is pending;

(iii) ony recovery procee-
dings initioted on the
bosis of the demond
served upon him prior to
the disposol of such
oppeol, revision or other
proceedings moy be
continued in relotion to
the omount so reduced
from the stoge ot which
such proceedings stood
immediotely before such
disposol.



230

CHAPTER - XVI

LIABILITYTO PAY IN CERTAIN CASES

85. (l ) Where o toxoble person, lioble to
poy tox under this Act, tronslers
his business in whole or in port,
by sole, gift, leose, leove ond
license, hire or in onyotter monner

whotsoever, the toxoble person
ond the person to whom the
business is so tronslerred sholl,

lointly ond severolly, be lioble
wholly or to the extent of such
tronsfer, to poy the tox, interest
or ony penolty due from the
toxoble person upto the time o{
such tronsfer, whether such tox,
interest or penolty hos been
determined belore such tronsfet
but hos remoined unpoid or is
determined thereofter.

(2) Where the tr.'nsferee of o
business refened to in sub-sedion
(l ) corries on such business either
in his own nome or in some other
nome, he sholl be lioble to poy

tox on the supply of goods or
services or both effected by him
with effect from the dote of such
tronsfer ond sholl, if he is o regis-
tered person under thisAct, opply
within the prescribed time for
omendment of his certificote ol
registrotion.

86. Where on ogent supplies or receives
ony toxoble goods on beholf of his
principol, such ogent ond his principol
sholl, lointly ond severolly, be lioble to
poy the tox poyoble on such goods
under this Act.

Liobility in
cose of
tronsfer ol
business.

Liobility of
ogent
ond princi-

Pol.



87. (r )

(2)

88. (l)

(2)

231

When two or more componies ore
omolgomoted or merged in
pursuonce of on order of court or
of Tribunol or otherwise ond the
order is to toke effect from o dote
eorlier to the dote ofthe order ond
ony two or more of such com-
ponies hove supplied or received
ony goods or services or both to
or from eoch other during the
period commencing on the dote
from which the order tokes effect
tillthe dote ofthe order, then such
tronsoctions of supply ond receipt
sholl be included in the turnover
of supply or receipt of the
respective componies ond they
sholl be lioble to poy tox
occordingly.

Notwithstonding o nyth ing
contoined in the soid order, forthe
purposes of this Act, the soid two
or more componies sholl be
treoted os distinct componies for
the period up to the dote ol the
soid order ond the registrotion
certificotes ol the soid componies
sholl be concelled with effed from
the dote of the soid order.

When ony compony is being
wound up whether under the
orders of o court or Tribunol or
othenvise, every person oppointed
os receiver of ony ossets of o
compony (hereofter in this section
referred to os ttre liquidotor'), sholl.
within thirty doys ofter his
oppointment, give intimotion of his
oppointment to the Commissioner.

The Commissioner sholl, ofter
moking such inquiry or colling for
such informotion os he moy deem

Liobility in
cose of
trmlgcrndftn
or
merger oI
componies.

Liobility in
cose of
compony in
liquidotion.



18 of 201 3

(3)

8e. (r )

232

fit, notify the liquidotor within three
months from the dote on which he
receives intimotion of the
oppointment of the liquidotor, the
omountwhich in the opinion of the
Commissioner would be sufficient
to provide for ony tox, interest or
penolty which is then, or is likely
thereofter to become, poyoble by
the compony.

When ony privote compony is
wound up ond ony tox, interest or
penolty determined under thisAct
on the compony for ony period,
whether before or in the course of
or ofter its liquidotion, connot be
recovered, then every person who
wos o director of such compony
ot ony time during the period for
which the tox wos due sholl, jointly
ond severolly, be lioble Ior the
poyment of such tox, interest or
penolty, unless he proves to the
sotisfoction of the Commissioner
thot such non-recovery connot be
ottributed to ony gross neglect,
misleosonce or breoch of duty on
his port in relotion to the offoirs of
the compony.

Notwithstonding onything con-
toined in the Componies Act,
201 3, where ony tox, interest or
penolty due from o privote
compony in respect of ony supply
of goods or services or both for
ony period connot be recovered,
then, every person who wos o
director ol the privote compony
during such period sholl, jointly
ond severolly, be lioble for the
poyment of such tox, interest or
penolty unless he proves thot the

Liobility of
diredors
of privote
compony.



233

nonrecovery connot be ottributed
to ony gross neglect, mis-
feosonce or breoch of duty on his
port in relotion to the offoirs of the
compony.

(2) Where o privote compony is
converted into o public compony
ond the tox, interest or penolty in
respect of ony supply of goods or
services or both for ony period
during which such compony wos
o privote compony connot be
recovered before such conversion,
then, nothing contoined in sub-
section (1) sholl opply to ony
person who wos o director of such
privote compony in relotion to ony
tox, interest or penolty in respect
of such supply of goods or
services or both of such privote
compony:

Provided thot nothing contoined in
this sub-section sholl opply to ony
personol penolty imposed on such
director.

90. Notwithstonding ony controct to the
controry ond ony other low lor the time
being in force, where ony firm is lioble
to poy ony tox, interest or penolty
under thisAct, the firm ond eoch of the
portners of the firm sholl, jointly ond
severolly, be lioble for such poyment :

Provided thot where ony portner
retiresfrom the firm, he or thefirm, sholl
intimote the dote ol retirement of the
soid portner to the Commissioner by o
notice in thot beholf in writing ond such
portner sholl be lioble to poy tox,
interest or penolty due upto the dote of
his retirement whether determined or
not, on thot dote :

Liobility ol
portners
of firm to
poy tox.



231

Provided further thot if no such
intimotion is given within one month
from the dote of retirement, the liobility
of such portner under the first proviso
sholl continue until the dote on which
such intimotion is received by the
Commissioner.

91. Where the business in resped of which
ony tox, interest or penolty is poyoble
under this Act is corried on by ony
guordion, trustee or ogent of o minor
or other incopocitoted person on beholf
of ond for the benefit of such minor or
other incopocitoted person, the tox,
interest or penolty sholl be levied upon
ond recoveroble from such guordion,
trustee or ogent in like monner ond to
the some extent os it would be
determined ond recoveroble from ony
such minor or other incopocitoted
person, os if he were o mojor or
copocitoted person ond os if he were
conducting the business himself, ond
ollthe provisions of thisAa orthe rules
mode thereunder sholl opply
occordingly.

92. Where the estote or ony portion of the
estote of o toxoble person owning o
business in respect of which ony tox,
interest or penolty is poyoble underthis
Act is under the control of the Court of
Words, the Administrotor Generol, the
Off iciol Trustee or ony receiver or
monoger (includlng ony person,
whotever be his designotion, who in foct
monoges the business) oppointed by
or under ony order of o court, the tox,
interest or penolty sholl be levied upon
ond be recoveroble from such Court of
Words, Administrotor Generol, Officiol
Trustee, receiver or monoger in like
monner ond to the some extent os it

Liobility of
guordions,
trustees
etc.

Liobility of
Court of
Words, etc



3l of 201 6 93. (l )

235

would be determined ond be
recoveroble from the toxoble person os
if he were conducting the business
himself, ond oll the provisions of this
Act or the rules mode thereunder sholl
opply occordingly.

Sove os otheruise provided in the
lnsolvency ond Bonkruptcy Code,
2016,where o person, lioble to
poy tox, interest or penolty under
this Act, dies, then--
(o) il o business corried on by

the person is continued ofter
his deoth by his legol
representotive or ony other
person, such legol represen-
totive or other person, sholl
be lioble to poy tox, interest
or penolty due from such
person under this Act ; ond

(b) if the business corried on by
the person is discontinued,
whether before or ofter his
deoth, his legol represen-
totive sholl be lioble to poy,
out of the estote of the
deceosed, to the extent to
which the estote is copoble
of meeting the chorge, the
tox, interest or penolty due
from such person under this
Act,

whether such tox. interest
or penolty hos been
determined before his deoth
but hos remoined unpoid or
is determined sfter his deoth.

Sove os otherwise provided in the
lnsolvency ond Bonkruptcy Code,
2016, where o toxoble person,
lioble to poy tox, interest or
penolty underthisAct, is o Hindu

Speciol
provisions
regording
liobility to
poy tox,
interest or
penolty in
certoin
coses.

31 oi2016. Q\



31 of20l6.

236

U ndivided Fomily or on
ossociotion of persons ond the
property of the Hindu Undivided
Fomily or the ossociotion of
persons is portitioned omongst
the vorious members or groups of
members, then, eoch member or
group of members sholl, iointlyond
severolly, be lioble to poy the tox,
interest or penolty due from the
toxoble person under this Act
upto the time of the portition
whether such tox, penolty or
interest hos been determined
before portition but hos remoined
unpoid or is determined ofter the
portition.

(3) Sove os otherwise provided in the
lnsolvency ond Bonkruptcy Code,
2016, where o toxoble person,
lioble to poy tox, interestor penolty
under this Act, is o firm, ond the
firm is dissolved, then, every
person who wos o portner sholl,
jointly ond severolly, be liobie to
poy the tox, interest or penolty
due from the firm under this Act
upto the time of dissolution
whether such tox, interest or
penolty hos been determined
before the dissolution, but hos
remoined unpoid or is determined
ofter dissolution.

(4) Sove os otherwise provided in the
lnsolvency ond Bonkruptcy Code,
2016, where o toxoble person
liobleto poy tox, interestor penolty
under this Act.--
(o) is the guordion of o word on

whose beholfthe business is
corried on by the guordion;
or

3l of 2016.



e4. (t )

237

(b) is o trustee who corries on
the business under o trust for
o beneliciory

then, if the guordionship or
trust is terminoted, the word
or the beneficiory sholl be
lioble to poy the tox, interest
or penolty due from the
toxoble person upto the time
of the terminotion of the
guordion-ship or tru st,
whether such tox, interest or
penolty hos been determined
before the terminotion of
guordionship or trust but hos
remoined unpoid or is
determined thereofter.

Where o toxoble person is o Iirm
or on ossociotion of persons or o
Hindu Undivided Fomily ond such
firm, ossociotion or fomily hos
discontinued business--
(o) the tox, interest or penolty

poyoble under this Act by
such firm, ossociotion or
fomily upto the dote of such
discontinuonce moy be
determined os if no such
discontinuonce hod token
ploce; ond

(b) every person who, ot the time
of such discontinuonce, wos
o portner of such firm, or o
member of such ossociotion
or fomily, sholl, notwith-
stonding such d isconti-
nuonce, jointly ond severolly,
be lioble {or the poyment of
tox ond interest determined
ond penolty imposed ond
poyoble by such firm, osso-
ciotion or Iomily, whether

Liobility in

other
coses.



238

such tox ond interest hos
been determined or penolty
imposed prior to or ofter such
discontinuonce ond subject
os oforesoid, the provisions
of this Act sholl, so for os
moy be, opply os if every
such person or portner or
member were himself o
toxoble person.

(2) Where o chonge hos occurred in

the constitution of o firm or on
ossociotion of persons, the
portners of the firm or members
ofossociotion, os it existed before
ond os it exists ofter the
reconstitution, sho ll, without
prejudice to the provisions oi
section 90, jointly ond severolly,
be lioble to poy tox, interest or
penolty due from such firm or
ossociotion for ony period before
its reconstitution.

(3) The provisions of sub-section (l )
sholl, so for os moy be, opply
where the toxoble person, being
o firm or ossociotion of persons
is dissolved or where the toxoble
person, being o Hindu Undivided
Fomily, hos effected portition with
respect to the business corried on
by it ond occordingly references
in thot sub-section to disconti-
nuonce sholl be construed os
reference to dissolution or to
portition.

Explonotion.-For the purposes of this
Chopter,-

0 o 'Limited Liobility Portner
ship"formed ond registered

6 of 2009



2)9

under the provisions of the
Limited Liobility Portnership
Act, 2008 sholl olso be
considered os o lirm ;

(ii) Court" meons the District
Court, High Court or
Supreme Court.

CHAPTER - XVII

ADVANCE RULING

95. ln this Chopter, unless the context
otherwise requires,-
(o) "odvonce ruling"meons o decision

provided by the Authority or the
Appellote Authority to on opplicont
on motters or on questions
specified in sub-section (2) of
section 97 or sub-section (l) of
section 100, in relotion to the
supply of goods or services or both
being undertoken or proposed to
be undertoken by the opplicont;

(b) 'Appellote Authority" meons the
Appellote Authority for Advonce
Ruling constituted under section
99;

(c) "opplicont" meons ony person
registered or desirous ol obtoining
registrotion under this Act ;

(d)'hpplicotion"meonson opplicotion
mode to the Authority under sub-
section (l ) of section 97,

(e)'Authority"meonstheAuthorityfor
Advonce Ruling, constituted
under section 96.

96. (1) The Government sholl, by
nolfi cotion, con stitute on Authority
to be known os the Arunochol
Prodesh Authority for Advonce
Ruling :

Constitution
ofAuthority
{or Advonce
Ruling.

Definitions.



2/r0

Provided thot the Government
moy, on the recommendotion of the
Council, notify ony Authority locoted
in onother Stote to oct os the Authoriu
for the Stote.

(2) The Authority sholl consist of-

(i) one member from amongst
the officers of centrol tox;
ond

(ii) one member from omongst
the oflicers of Stote tox, to
be oppointed by the Centrol
Government ond the Stote
G ov e r n m e n t re s pe cli ve I y.

(3) The quolificotions, the method of
appointment of the members ond
the terms ond conditions of their
services sholl be such os moy be
prescribed.

97. (l ) An opplicont desirous ofobtoining
on odvonce ruling under this
Chopter moy moke on opplicotion
in such form ond monner ond
occomponied by such lee os moy
be prescribed, stoting the
question on which the odvonce
ruling is sought.

(2) The question on which the
odvonce ruling is sought under
this Act, sholl be in respect of, -

(o) clossificotion of ony goods
or services or both ;

(b) opplicobility of o notificotion
issued under the provisions
of this Act ;

(c) determinotion of time ond
volue of supply of goods or
services or both ;

Applicotion
for odvonce
ruling.



21t

(d) odmissibility o{ input tox
credit o{ tox poid or deemed
to hove been poid ;

(e) determinotion of the liobility
to poy tox on ony goods or
services or both ;

(f) whether opplicont is required
to be registered ;

(g) whether ony porticulor thing
done by the opplicont with
respect to ony goods or
services or both omounts to
or results in o supply of
goods or services or both,
within the meoning of thot
term.

98. (1) On receipt of on opplicotion, the
Authority sholl couse o copy
thereof to be forworded to the
concerned officer ond, if
necessory coll upon him tofurnish
the relevont records :

Provided thot where ony records
hove been colled for bythe Authority in
ony cose, such records sholl, os soon
os possible, be returned to the soid
concerned officer.

(2) The Authority moy, ofter
exomining the opplicotion ond the
records colledforond ofter heoring
the opplicont or his outhorised
representotive ond the concerned
officer or his outhorised
representotive, by order, either
odmit or reject the opplicotion :

Provided thot the Authority sholl
not odmit the opplicotion where the
question roised in the opplicotion is
.olreody pending or decided in ony
proceedings in the cose ofon opplicont
under ony of the provisions of thisAct:

Procedure
on receipt
o{ opplico-
tion.



212

Provided further thot no opplicstion
sholl be rejected under this sub-section
unless on opportunity of heoring hos
been given to the opplicont :

Provided olso thot where the
opplicotion is reiected, the reosons for
such rejection sholl be specified in the
order.

(3) A copy of every order mode under
sub-section (2) sholl be sent to
the opplicontond to the concerned
officer.

(4) Where on opplicotion is odmitted
under sub-section (2), the
Authority sholl. ofter exomining
such further moteriol os moy be
ploced before it by the opplicont
or obtoined by the Authority ond
ofter providing on opportunity of
being heord to the opplicont or his
outhorised representotive os well
os to the concerned officer or his
outhorised representotive, pro-
nounce its odvonce ruling on the
q u e stion specified in the
opplicotion.

(5) Where the members of the
Authority differ on ony question on
which the odvonce ruling is
sought, they sholl stote the point
or points on which they differ ond
moke o reference to theAppellote
Authority lor heoring ond decision
on such question.

(6) TheAuthoritysholl pronounce its
odvonce ruling in writing within
ninety doys from the dote of
receipt of opplicotion.



213

(7) A copy of the odvonce ruling
pronounced by the Authority duly
signed by the members ond
certified in such monner os moy
be prescribed sholl be sent to the
opplicont, the concerned officer
ond the iurisdictionol officer ofter
such pronouncement.

99. The Government sholl, by notificotion,
constitute on Authority to be known os
Arunochol Prodesh Appellote Au toity
for Advonce Ruling for Goods ond
Services Tax for heoring appeols
ogoinst the odvance ruling pronounced
by the Advonce Ruling Authority
consisting of :-

(i) the Chief Commissioner ol centrol
tox os designoted by the Boord;
ond

(ii) the Commissioner of Stote tox.

Provided thot the Government
moy, on the recommendotions of the
Council, notify any Appellate Authority
locoted in dnother Stote or Union
territory to oct os the Appellote
Authority for the Stote.

100. (l) The concerned o{ficer, the
jurisdictionol officer or on
opplicont oggrieved by ony
odvonce ruling pronounced under
sub-section (4) of section 98,
moy oppeol to the Appellote
Authority.

(2) Every oppeol under this section
sholl be filed within o period of
thirty doys from the dote on which
the ruling sought to be oppeoled
ogoinst is communicoted to the
concerned officer, the ju r is-
dictionolofficer ond the opplicont :

Constitution
of Appellote
Authority
for Advonce
Ruling.

Appeol to the
Appellote
Authority.



244

Provided thot the Appellote
Authority moy, if it is sotisfied thot the
oppellont wos prevented by o sufficient
couse from presenting the oppeol
within the soid period ol thirty doys,
ollow it to be presented within o further
period not exceeding thirty doys.
(3) Every oppeol under this section

sholl be in such form, occom-
ponied by such fee ond verified in
such monner os moy be
prescribed.

101. (1) The Appellote Authority moy,
ofter giving the porties to the
oppeol or reference on opportu-
nity of being heord. poss such
order os it thinks fit. confirming
or modifying the ruling oppeoled
ogoinst or referred to.

(2) The order referred to in sub-
section ( 1) sholl be possed within
o period of ninety doys from the
dote of filing of the oppeol under
section 100 or o reference under
sub-section (5) of section 98.

(3) Where the members of the
Appellote Authority differ on ony
point or points referred to in
oppeol or reference, it sholl be
deemed thot no odvonce ruling
con be issued in respect of the
question under the oppeol or
reference.

(4) A copy of the odvonce ruling
pronounced by the Appellote
Authority duly signed by the
Members ond certified in such
monner os moy be prescribed
sholl be sent to the opplicont, the
concerned officer, the jurisdidionol
officer ond to the Authority ofter
such pronouncement.

Orders of
Appellote
Authority.



245

'I 02. The Authority or the Appellote
Authority moy omend ony order
possed by it under section 98 or
section I 0.l, so os to rectify ony error
opporent on the foce of the record, if
such error is noticed by theAuthority
or the Appellote Authority on its own
occord, or is brought to its notice by
the concerned officer, the juris-
dictionol officer, or the opplicont or
the oppellont within o period o{ six
months from the dote of the order :

Provided tfrot no rectificotion which
hos the effect of enhoncing the tox
liobility or reducing the omount of
odmissible input tox credit sholl be
mode unless the opplicont or the
oppellonthos been given on opportunity
oi being heord.

103. (l) The odvonce ruling pronounced
by the Authority or theAppellote
Authority under this Chopter
sholl be binding only -

(o) on the opplicont who hod
sought it in respect of ony
motter referred to in sub-
section (2) of section 97 for
odvonce ruling;

(b) on the concerned officer or
the jurisdictionol officer in
respect of the opplicont.

(2) The odvonce ruling referred to in
sub-section (l ) sholl be binding
unless the low, locts or circum-
stonces supporting the originol
odvonce ruling hove chonged.

I 04. ('l ) Where the Authority or the
Appellote Authority finds thot
odvonce ruling pronounced by it
under sub-section (4) oi section
98 or under sub-section (l) of

Rectificotion
ofodvonce
ruling.

Applicobility
ofodvonce
ruling.

Advonce
ruling to be
void in cer-
toin circum-
stonces.



5 of 1908

246

section 'l0l hos been obtoined
by the opplicont or the oppellont
by froud or suppression of
moteriol focts or misrepresen-
totion of focts, it moy, by order,
declore such ruling to be void
obinitio ond thereupon oll the
provisions of thisAct or the rules
mode thereunder sholl opply to
the opplicont or the oppellont os
if such odvonce ruling hod never
been mode :

Provided thot no order sholl be
possed under this sub-section unless
on opportunity ofbeing heord hos been
given to the opplicont or the oppellont.

E xpl o n otio n. -f he period begin-
ning with the dote of such odvonce
ruling ond ending with the dote oforder
under this sub-se;tion sholl be
excluded while computing the period

specified in sub-sections (2) ond ( I 0)

of section 73 or sub-sections (2) ond
(10) of section 74.

(2) A copy of the order mode under
sub-section (l ) sholl be sent to
the opplicont, the concerned
officer ond the jurisdictionol officer.

105. (l) The Authority or the Appellote
Authority sholl, for the purpose

of exercising its powers
regording -
(o) discovery ond inspection ;

(b) enforcing the ottendonce of
ony person ond exomining
him on ooth ;

Powers of
Authority
ondAppel-
lote
Authority.



2of 1974.

45 of 1860.

247

(c) issuing commissions ond
compelling production of
books of occount ond other
records, hove oll the powers

of o civil court under the
Code of Civil Procedure,
1908.

(2) The Authority or the Appellote
Authority sholl be deemed to be

o civil court Ior the purposes of
section 195, but not for the
purposes of Chopter xxvl of the
Code of Criminol Procedure,
1973, ond every proceeding before

the Authority or the Appellote
Authority sholl be deemed to be
o judiciol proceedings within the
meoning of sedions 193 ond 228,

ond for the purpose of sedion 1 96

of the lndion PenolCode.

106. The Authority or the Appellote
Authority sholl, subject to the
provisions of ttris Chopter, hove power

to regulote its own procedure.

CHAPTER_XVIII

APPEALSAND REVISION

I07. (l) Any person oggrieved by ony
decision or order possed under
thisAct or the CentrolGoods ond

Services Tox Ad by on odjudico-
ting outhority moy oppeolto such
Appellote Authority os moy be
prescribed within three months
from the dote on which the soid
decision or order is communi-
coted to such person.

Procedure
ofAutho.
rity ond
Appellote
Authority.

Appeols to
Appellote
Authority.



248

(2) The Commissioner moy, on his
own motion, or upon request from
the Commissioner of centrol tox,
coll for ond exomine the record
of ony proceeding in which on
odjudicoting outhority hos
possed ony decision or order
under this Act or the Centrol
Goods ond Services Tox Act, for
the purpose of sotisfying himself
os to the legolity or propriety of
the soid decision or order ond
moy, by order, direct ony oflicer
subordinoteto him to opplyto the
Appellote Authority within six
months from the dote of
communicotion of the so id
decision or order for the
determinotion of such points
orising out of the soid decision
or order os moy be specified by
the Commissioner in his order.

(3) Where, in pursuonce of on order
under sub-section (2), the
outhorised officer mokes on
o pplicotion to the Appellote
Authority, such opplicotion sholl
be deoh with by the Appellote
Authority os if it were on oppeol
mode ogoinst the decision or
order of the odjudicoting outhority
ond such outhorised officer were
on oppellont ond the provisions
of this Act reloting to oppeols
sholl opply to such opplicotion.

(4)The Appellote Authority moy, if he
is sotisfied thotthe oppellont wos
prevented by sufficient couse
from presenting the oppeolwithin
the oforesoid period of three
months or six months, os the
cose moy be, ollow it to be
presented within o further period
of one month.



219

(5) Every oppeol under this section
sholl be in such form ond sholl
be verified in such monner os
moy be prescribed.

(6) No oppeol sholl be filed under
sub-section (l), unless the
oppellont hos poid-

(o) in full, such port of the
omount of tox, interest, fine,
fee ond penolty orising from
the impugned order. os is
odmitted by him; ond

(b) o sum equolto ten per cent.

of the remoining omount of
tox in dispute orising from
the soid order, in relotion to
which the oppeol hos been
filed.

(7) Where the oppellont hos poid the
omount under sub-section (6),

the recovery proceedings for the
bolonce omount sholl be
deemed to be stoyed.

(8) The AppelloteAuthority sholl give

on opportunity to the oppellont
of being heord.

(9) The Appellote Authority moy, if
sufficient couse is shown ot ony
stoge of heoring of on oppeol,
gront time to the porties or ony
of them ond odiourn the heoring
ol the oppeol for reosons to be
recorded in writing:

Provided thot no such odjourn-
ment sholl be gronted more thon three
times to o porty during heoring of the
oppeol.



250

( l0) The Appellote Authority moy, ot
the time of heoring of on oppeol,
ollow on oppellont to odd ony
ground of oppeol not specified in
the grounds of oppeol, il it is
sotisfied thotthe omission of thot
ground from the grounds of
oppeol wos not wilful or
unreosonoble.

( I I ) The Appellcrte Aufiority sholl, ofter
moking such further inquiry os
moy be necessory, poss such
order, os it *rinks iustond proper,

conlirming, modilying or
onnulling the decision or order
oppeoled ogoinst but sholl not
refer the cose bock to the
odjudicoting outhority thot
possed the soid decision or
order:

Provided hoton order enhoncing
ony fee or penolty or fine in lieu of
confiscotion or confiscoting goods of
greoter volue or reducing the omount
of refund or input tox credit sholl not
be possed unless the oppellont hos
been given o reosonoble opportunity
of showing couse ogoinst the
proposed order:

Provided further thot where the
Appellote Authority is of the opinion
thot ony tox hos not been poid or
short-poid or erroneously refunded, or
where input tox credit hos been
wrongly ovoiled or utilised, no order
requiring the oppellontto poy such tox
or input tox credit sholl be possed
unless the oppellont is given notice to
show couse ogoinst the proposed
order ond the order is possed within
the time limit specified under section
73 or section 74.



251

(12) The order of the Appellote
Authority disposing of the oppeol
sholl be in writing ond sholl stote
the points for determinotion, the
decision trereon ond the reosons
for such decision.

(13) The Appellote Authority sholl,
where it is possible to do so, heor
ond decide every oppeolwithin o
period ol one yeor from the dote
on which it is filed:

Provided thot where fre issuonce
of order is stoyed byon orderofo court
or Tribunol, the period of such stoy
sholl be excluded in computing the
period of one yeor.

(14) On disposol of the oppeol, the
Appellote Authority sholl
communicote the order possed
by itto the oppellont, respondent
ond to the odjudicoting outhority.

(15) A copy of the order possed by
the Appellote Authority sholl olso
be sent to the Commissioner or
the outhority designoted by him
in this beholf ond the
jurisdictionol Commissioner of
centrol tox or on outhority
designoted by him in this beholl.

(16) Every order possed under this
section sholl, subject to the
provisions oi section 108 or
section 113 or section 117 or
section I l8 be finol ond bindinq
on the porties.

108. (l) Subiect to the provisions of
section 121 ond ony rules mode
thereunder, the Revisionol
Authority moy, on his own
motion, or upon informotion
received by him or on request

Powers of
Revisionol
Authority.



252

from the Commissioner of centrol
tox, coll for ond exomine the
record of ony proceedings, ond
i{ he considers thot ony decision
or order possed under this Act
or under the Centrol Goods ond
Services Tox Act by ony officer
subordinote to him is erroneous
in so for os it is prejudiciol to the
interest of revenue ond is illegol
or improper or hos nottoken into
occount certoin moteriol focts,
whether ovoiloble ot the time o{
issuonce ofthe soid order or not
or in consequence of on obser-
votion by the Comptroller ond
Auditor Generol of lndio, he moy,
il necessory stoy the operotion
of such decision or order for
such period os he deems fit ond
ofter giving llre person concerned
on opportunity of being heord
ond ofter moking such further
inquiry os moy be necessory
poss such order, os he thinks
just ond proper, including
enhoncing or modifying or
onnulling the soid decision or
order.

(2) The Revisionol Authority sholl not
exercise ony power under sub-
section (1), if--
(o) the order hos been subject

to on oppeol under section
1 07 or section I I 2 or sec-
tion 117 or section 118; or

(b) the period specified under
sub-section (2) of section
107 hos not yet expired or
more thon three yeors hove
expired ofter the possing of
the decision or order sought
to be revised ; or



253

(c) the order hos olreody been
token for revision under
this section ot on eorlier
stoge ; or

(d) the order hos been possed
in exercise of the powers
under sub-section (l ):

Provided thot the Revisionol
Authority moy poss on order under
sub-section (l ) on ony pointwhich hos
not been roised ond decided in on
oppeol referred to in clouse (o) of sub-
section (2), be{ore the expiry of o
period of one yeorfrom the dote of the
order in such oppeol or before the
expiry of o period of three yeors
referred to in clouse (b) ol thot sub-
sedion, whichever is loter.

(3) Every order possed in revision
under sub-section (l ) sholl,
subject to the provisions of
section ll3 or section ll7 or
section I 1 8, be finol ond binding
on the porties.

(4) lf the soid decision or order
involves on issue on which the
Appellote Tribunol or the High
Court hos given its decision in
some other proceedings ond on
oppeol to the High Court or the
Supreme Court ogoinst such
decision ol theAppellote Tribunol
or the High Court is pending, the
period spent between the dote ol
the decision of the Appellote
Tribunol ond the dote of the
decision of the High Court or the
dote of the decision of the High
Courtond he dote ofthe decision
of the Supreme Court sholl be
excluded in computing the period



(s)

109. (t)

(2)

254

of limitotion referred to in clouse
(b) of sub-section (2) where
proceedings for revision hove
been initioted by woy of issue of
o notice under this section.

Where the issuonce of on order
under sub-section (l ) is stoyed
by the order ol o court or
Appellote Tribunol, the period ol
such stoy sholl be excluded in
computing the period of limitotion
referred to in clouse (b) of sub-
section (2).

For the purposes ofthis sedion,
the term,--
(i) lecord" sholl include oll

records reloting to ony
proceedings under this Act
ovoiloble ot the time of
exominotion by the
Revisionol Authority;

(ii) "decision " sholl include
intimotion given by ony
oflicer lower in ronkthon the
RevisionolAuthority.

Subiect to the provisions ofthis
Choptet; the Goods ond Seruices
Tox Tribunol constituted under
the Central Goods ond Services
Tox Act sholl be the Appellote
Tribunol for heoring oppeols
ogoinstthe orders possed by the
Appellote Authority or the
Revisionol Authotity under this
Act.

The constitution ond jurisdiction
of the Stote Bench ond the Areo
Benches locoted in the Stote
sholl be in occordance with the
provisions of section 109 of the
Centrol Goods ond Seruices Tox
Act or the rules mode thereun-
der.

Appellate
Tribunol
ond
Benches
thereof.



255

I10. The quolificotions, oppointnent, solory
ond ollowonces, terms of office, resig
notion ond removol of the President
ond Members of the Stote Bench and
Area Benches sholl be in occordonce
with the provisions of section I l0 of
the Central Goods and Services Tox
Act.

I1l. (l) TheAppellote Tribunol sholl not,
while disposing ol ony procee-
dings before it or on oppeol
before it, be bound bythe proce.
dure loid down in the Code of
Civil Procedure, 1908, but sholl
be guided by the principles of
noturoljustice ond subject to the
other provisions of this Act ond
the rules mode thereunder, the
Appellote Tribunol sholl hove
power to regulote its own
procedure.

(2) The Appellote Tribunol sholl, for
the purposes of dischorging its
functions underthisAct, hove the
some powers os ore vested in o
civil court underthe Code of Civil
Procedure, 1908, while trying o
suit in respect of the following
mofters, nomely :-
(o) summoning ond enforcing

the ottendonce of ony
person ond exomining him
on ooth ;

(b) requiring the discovery ond
production of documents ;

(c) receiving evidence on
offidovits;

(d) subjeato the provisions ol
sections 123 ond 124 ofthe
lndion Evidence Act, 1872,
requisitioning ony public

President ond
Members of
Appellote
Tribunol,
thet quolifi-
cdtion,
oppointment,
condi-tions of
seruice, etc.

Procedure
before
Appellote
Tribunol.

5ofl908

1 of 1872

5 of 1908.



256

record or document or o
copy of such record or
document from ony office ;

(e) issuing commissions for the
exominotion of witnesses or
documents ;

(f) dismissing o representotion
for defoult or deciding it
ex pofte ;

(g) setting oside ony order of
dismissol of ony represento-
tion for defoult or ony order
possed by it ex porte; ond

(h) ony other motterwhich moy
be prescribed.

(3) Any order mode bytheAppellote
Tribunol moy be enforced by it in
the some monner os if it were o
decree mode by o court in o suit
pending therein, ond it sholl be
lowful for the Appellote Tribunol
to send for execution of its or-
ders to the court within the locol
limits of whose jurisdiction,-

(o) in the cose of on order
ogoinst o compony, the reg-
istered office of the com-
pony is situoted ; or

(b) in the cose of on order
ogoinst ony other person,
fre person concerned volun-
torily resides or corries on
business or personolly
works for goin.

(4) All proceedings before the
Appellote Tribunol sholl be
deemed to be judicio I

proceedings within the meoning
of sections 193 ond 228, ond for
the purposes of section 196 of

45 of 1860.

2of 1974.



il2. (r)

(2)

(3)

Appeols to
Appellote
Tribunol.

257

the lndion Penol Code, ond the
Appellote Tribunol sholl be
deemed to be civil court for the
purposes of section 195 ond
Chopter XXVI of the Code of
Criminol Procedure, I 973.

Any person oggrieved by on
order possed ogoinst him under
section 107 or section 108 of
this Ad or the CentrolGoods ond
Services Tox Act moy oppeol to
the Appellote Tribunol ogoinst
such order within three months
from the dote on which the order
sought to be oppeoled ogoinst is
communicoted to the person
preferring the oppeol.

TheAppellote Tribunol moy, in its
discretion, refuse to odmit ony
such oppeol where the tox or
input tox credit involved or the
difference in tox or input tox
credit involved or the omount of
fine, fee or penolty determined by
such order, does not exceed fifty
thousond rupees.

The Commissioner moy, on his
own motion, or upon requestfrom
the Commissioner of centrol tox.
coll for ond exomine the record
of ony order possed by the
Appellote Authority or the
Revisionol Authority under this
Act or under the Centrol Goods
ond Services Tox Act for the
purpose of sotisfying himself os
to the legolity or propriety o{ the
soid order ond moy, by order,
direct ony officer subordinote to
him to opply to the Appellote
Tribunol within six months from



258

the dote on which the soid order
hos been possed for deter-
minotion of such points orising
out of the soid order os moy be
specified by the Commissioner
in his order.

(4) Where in pursuonce of on order
under sub-section (3) the
outhorised oflicer mokes on
opplicotion to the Appellote
Tribunol, such opplicotion sholl
be deolt with by the Appellote
Tribunol os if it were on oppeol
mode ogoinst the order under
sub-section (l I ) of section 107
or under sub-section (l) of
section 108 ond the provisions of
this Act sholl opply to such
opplicotion, os they opply in
relotion to oppeols filed under
sub-section (l ).

(5) On receipt of notice thot on
oppeol hos been preferred under
this section, the porty ogoinst
whom the oppeol hos been
prefened moy, notwithstonding
thot he moy not hove oppeoled
ogoinst such order or ony port
thereof, file, within forty-five doys
of the receipt of notice, o memo-
rondum of cro s s- objection s,
verified in the prescribed monnel
ogoinst ony port of the order
oppeoled ogoinst ond such
memorondum sholl be disposed
of by theAppellote Tribunol, os if
it were on oppeol presented
within the time specified in sub-
section ( I ).



259

(6) The Appellote Tribunol moy odmit
on oppeol within three months
ofter the expiry of the period
referred to in sub-section (l ), or
permit the flling of o memo-
rondum o{ cross- obiectio n s
within forty-five doys ofter the
expiry ol the period referred to in
sub-section (5), if it is sotisfied
thot there wos sufficient couse
for not presenting it within thot
period.

(7) An oppeol to the Appellote
Tribunol sholl be in such form,
verified in such monnerond sholl
be occomponied by such fee, os
moy be prescribed.

(8) No oppeol sholl be filed under
sub-section (l ), unless the
oppellont hos poid-
(o) in full, such port of the

omount of tox, interest, fine,
fee ond penolty orising from
the impugned order, os is
odmitted by him, ond

(b) o sum equol to twenty per
cent. of the remoining
omount of tox in dispute, in
oddition to the omount poid
under sub-section (6) of the
section 107, orising from
the soid order, in relotion to
which the oppeol hos been
filed.

(9) Where the oppellont hos poid the
omount os per sub-section (8),

the recovery proceedings for the
bolonce omount sholl be
deemed to be stoyed till the
disposol of the oppeol.



260

(10) Every opplicotion mode before
theAppellote Tribunol, -

(o) in on oppeolfor rectilicotion
of error or for ony other
purpose; or

(b) for restorotion of on oppeol
or on opplicotion, sholl be
occomponied by such fees
os moy be prescribed.

I13. (1) TheAppelloteTribunol moy, ofter
giving the porties to the oppeol
on opportunity of being heord,
poss such orders thereon os it
thinks fit, confirming, modifying
or onnulling the decision or order
oppeoled ogoinstor moy refer the
cose bock to the Appellote
Authority, or the Revisionol
Authority or to the originol
odjudicoting outhority, with such
directions os it moy think fit, for
o fresh odjudicotion or decision
ofter toking odditionol evidence,
if necessory

(2) The Appellote Tribunol moy, if
suflicient couse is shown, ot ony
stoge of heoring of on oppeol,
gront time to the porties or ony
ofthem ond odjourn the heoring
of the oppeol for reosons to be
recorded in writing :

Provided thot no such odjourn-
ment sholl be gronted more thon three
times to o porty during heoring of the
oppeol.

(3) The Appellote Tribunol moy
omend ony order possed by it
under sub-section (l ) so os to
rectify ony enor opporent on the
foce of the record, if such error
is noticed by it on its own occord,

Orders of
Appellote
Tribunol.



261

or is brought to its notice by the
Commissioner or the Commi-
ssioner ofcentroltox or the other
porty to the oppeolwithin o period
of three months from the dote of
the order :

Provided thot no omendment
which hos the effect of enhoncing on
ossessment or reducing o refund or
input tox credit or otherwise increosing
the liobility of the other porty, sholl be
mode under this sub-section, unless
the porty hos been given on opportunity
ol being heord.

(4) The Appellote Tribunol sholl, os
for os possible, heor ond decide
every oppeol within o period of
one yeor Irom the dote on which
it is filed.

(5) TheAppelloteTribunol shollsend
o copy of every order possed
under this section to the
Appellote Authority or the
Revisionol Authority, or the ori-
ginol odjudicoting outhority, os
the cose moy be, the oppellont
ond the Commissioner or the
jurisdictionol Commissioner of
centrol tox.

(6) Sove os provided in section 117
or section 118, orders possed by
the Appellote Tribunol on on
oppeol sholl be finol ond binding
on the porties.

l14. The Stote President sholl exercise
such finonciol ond odministrotive
powers over the Stote Bench ond Area
Benches of the Appellote Tribunol in
o Stote, os moy be prescribed:

Finonciol
ond odmini-
stotive
powers of
Stote
President.



262

Provided thot the Stote President
sholl hove the outhority to delegote
such of his finonciol ond admini-
strotive powers os he moy think fit to
ony other Member or ony officer of the
Stote Bench or Areo Benches, subjeci
to the condition thot such Member or
officer sholl, while exercising such
delegated powers, continue to oct
under the direction, control ond
supervision of the Stote President.

I15. Where on omount poid by the
oppellont under subsection (6) of
section 107 or sub-section (8) of
section 1 l2 is required to be refunded
consequent to ony order of the
Appellote Authority or ol theAppellote
Tribunol, interest ot the rote specified
under section 56 sholl be poyoble in
respect of such refund from the dote
of poyment of the omount till the dote
of refund of such omount.

116. (1) Any person who is entitled or
required to oppeor before on
officer oppointed under thisAct,
or the Appellote Authority or the
Appellote Tribunol in connedion
with ony proceedings under this
Act, moy, otherwise thon when
required under this Act to oppeor
personolly for exominotion on
ooth or offirmotion, subiect to the
other provisions of this section,
oppeor by on o uthorised
representotive.

(2) For the purposes of this Act, the
expression "outhorised represen-
totive" sholl meqn o person
outhorised bythe person referred
to in sub-section (1) to oppeor
on his beholf, being -

lnterest on
refund ol
omount
poid for
odmission
of oppeol.

Appeoronce
by
outhorised
represento-
tive.



263

(o) his relotive or regulor
employee; or

(b) on odvocote who is entitled
to proctice in ony court in
lndlo, ond who hos not been
deborred from procticing
before ony court in lndio; or

(c) ony chortered occountont, o
cost occountont or o
compony secretory, who
holds o certificote of
proctice ond who hos not
been deboned {rom proaice;
q

(d) o retired officer of the
Commerciol Tox Deport-
ment of ony Stote Govern-
ment or Union t€rritory or of
the Boord who, during his
service under the
Government, hod worked in
o post not below the ronk
thon thot of o Group-B
Gozetted officer for o period
of not less thon two yeors:

Provided frot such officer shollnot
be entitled to oppeor before ony
proceedings under thisActfor o period
of one yeor from the dote of his
retirement or resignotion; or

(e) ony person who hos been
outhorised to oct os o
goods ond services tox
proctitioner on beholf ol the
concerned reg istered
person.

(3) No person, -
(o) who hos been dismissed or

removed from Government
service; or



264

(b) who is convicted of on
offence connected with ony
proceedings under this Ad,
lhe Centrol Goods ond
Services Tox Act, the
lntegroted Goods ond
Services Tox Act or the
Union Territory Goods ond
Services Tox Act, or under
the existing low or under
ony of the Acts possed by
o Stote Legisloture deoling
with the imposition of toxes
on sole of goods or supply
of goods or services or
both; or

(c) who is found guilty of
misconduct by the
prescribed outhority;

(d) who hos been odjudged os
on insolvent. sholl be
quolified to represent ony
person under sub-section
flF
(i) for olltimes in cose of

persons relerred to in
clouses (o),(b) ond
(c); ond

(ii) for the period during
which the insolvency
continues in the cose
ofo person referred to
in clouse (d).

(4) Any person who hos been
disquolified under the provisions
of the Centrol Goods ond
Services Tox Act or the Goods
ond Services ToxAct of ony other
Stote or the Union Territory
Goods ond Services Tox Act
sholl be deemed to be
disquolified under this Act.



265

I17. (l) Any person oggrieved byony order
possed by the Stote Bench or
Areo Benches of the Appellote
Tribunol moyfile on oppeolto the
High Court ond the High Court
moy odmit such oppeol, if it is
sotisfied thot the cose involves o
substontiol question of Iow.

(2) An oppeolunder sub-section (l )
sholl be filed within o period of
one hundred ond eighty doys
from the dote on which the order
oppeoled ogoinst is received by
the oggrieved person ond it sholl
be in such form, verified in such
monner os moy be prescribed:

Provided thot the High Court moy
entertoin on oppeol ofter the expiry of
the soid period if it is sotisfied thot
there wos sufficient couse for notfiling
it within such period.

(3) Where the High Court is sotisfied
thot o substontiol question of low
is involved in ony cose, it sholl
formulote thot question ond the
oppeol sholl be heord only on the
question so formuloted, ond the
respondents sholl, ot the heoring
ol the oppeol, be ollowed to
orgue thot the cose does not
involve such question:

Provided thot nothing in this sub-
section sholl be deemed to toke owoy
or obridge the power of the court to
heor, lor reosons to be recorded, the
oppeol on ony other substontiol
question of low not formuloted by it, if
it is sotisfied thot the cose involves
such question.

Appeol to
High Court



266

(4) The High Court sholl decide the
question of low so formuloted
ond deliver such judgment
thereon contoining the grounds
on which such decision is
founded ond moy oword such
cost os it deems fit.

(5) The High Court moy determine
ony issue which-
(o) hos not been determined

by the Stote Bench orAreo
Benches; or

(b) hos been wrongly deter-
mined by the Stote Bench
or Areo Benches, by
reoson of o decision on
such question of low os
herein referred to in
subsection (3).

(6) Where on oppeolhos been filed
before the High Court, it sholl be
heord by o Bench of not less
thon two Judges of the High
Court, ond sholl be decided in
occordonce with the opinion of
such Judges or of the mojority,
i{ ony, of such Judges.

(7) Where there is no such
mojority, the J udges sholl stote
the point of low upon which they
differ ond the cose sholl, then,
be heord upon thot point only.
by one or more of the other
Judges of the High Court ond
such point sholl be decided
occording to the opinion of the
moiority of the Judges who hove
heord the cose including those
who first heord it.



5ol 1908

267

(8) Where the High Court delivers o
judgment in on oppeol filed
before it underthis sedion, effect
sholl be given to such judgment
by either side on the bosis of o
certified copy ol the judgment.

(9) Sove os otherwise provided in
this Act, the provisions of the
Code of Civil Procedure, 1908,
reloting to oppeols to the High
Court sholl, os for os moy be,
opply in the cose of oppeols
under this section.

I '18. ( l ) An oppeol sholl lie to the
Supreme Court-

(o) lrom ony order possed by
the Notionol Bench or
Regionol Benches of the
Appellote Tribunol ; or

(b) from ony judgment or order
possed by the High Court
in on oppeol mode under
section 117 in ony cose
which, on its own motion or
on on opplicotion mode by
or on beholf of the porty
oggrieved, immediotely
ofter possing of the
judgment or order, the High
Courtcertifies to be o rit one
for oppeol to the Supreme
Court.

(2) The provisions of the Code of Civil
Procedure, 1908, reloting to
oppeols to the Supreme Court
sholl, so for os moy be, opply in
the cose of oppeols under this
section os they opply in the cose
of oppeols from decrees of o
High Court.

Appeol to
Supreme
Court.



268

(3) Where the judgment of the High
Court is voried or reversed in the
oppeol, effect sholl be given to
the order of the Supreme Court
in the monner provided in section
1 I 7 in the cose of o judgment of
the High Court.

'119. Notwithstonding thot on oppeol hos
been preferred to the High Court or
the Supreme Court, sums due to the
Government os o result of on order
possed by the Notionol or Regionol
Benches of the Appellote Tribunol
under sub-section (l ) ol section l1 3
or on order possed bythe Stote Bench
or Areo Benches ol the Appellote
Tribunol under sub-section (l) ol
section I I 3 or on order possed by the
High Court under section I17, os the
cose moy be, sholl be poyoble in
occordonce with the order so possed.

120. (l ) The Commissioner moy, on the
recommendotions of the Council,
from time to time. issue orders
or instructions or directions fixing
such monetory limits, os he moy
deem fit, Ior the purposes of
reguloting the filing of oppeol or
opplicotion by the officer of the
Stote tox under the provisions of
this Chopter.

(2) Where, in pursuonce ofthe orders
or instructions or d irections
issued under sub-section (l ), the
officer of the Stote tox hos not
filed on oppeol or opplicotion
ogoinst ony decision or order
possed under the provisions of
this Act, it sholl not preclude
such officer of the Stote tox from
filing oppeol or opplicotion in ony
other cose involving the some or
similor issues or questions of
low.

Appeol not to
be filed in
certoin
coses.

Sums due
to be poid
notwith-
stonding
oppeol etc



269

(3) Notwithstonding the foct thot no
oppeol or opplicotion hos been
filed by the officer of the Stote
tox pursuont to the orders or
instructions or directions issued
under sub-section ( l), no
person, being o pofi in oppeol
or opplicotion sholl contend thot
the officer of the Stote tox hos
ocquiesced in the decision on
the disputed issue by not filing
on oppeol or opplicotion.

(4) The Appellote Tribunol or court
heoring such oppeol or
opplicotion sholl hove regord to
the circumstonces under which
oppeol or opplicotion wos not
filed by the officer of the Stote
tox in pursuonce of the orders
or instructions or directions
issued under sub-section (l).

l2l. Notwithstonding onything to the
controry in ony provisions of thisAct,
no oppeol sholl lie ogoinst ony
decision token or order possed by on
officer of Stote tox il such decision
token or order possed relotes to ony
one or more of the following motters,
nomely :-

(o) on order ol the Commi-
ssioner or other outhority
empowered to directtrons-
fer of proceedings from one
oflicer to onother officer ; or

(b) on order pertoining to the
seizure or retention of
books of occount, register
ond other documents ; or

(c) on order sonctioning
prosecution under tris Ad ;
C

(d) on order possed under
section 80.

Nom
oppeoloble
decisions
ond
orders.



270

CHAPTER - XIX

OFFENCESAND PENALTIES
'122. (l ) Where o toxoble person who-

(i) supplies ony goods or
services or both without
issue of ony invoice or
issues on incorrect or Iolse
invoice with regord to ony
such supply ;

(ii) issues ony invoice or bill
without supply of goods or
services or both in violotion
of the provisions of thisAct
or the rules mode there-
under ;

(iii) collects ony omount os tox
but foils to poy the some to
the Government beyond o
period of three months from
the dote on which such
poyment becomes due;

(iv) collects ony tox in
controvention of the
provisions of this Act but
foils to poy the some to the
Government beyond o
period ofthree months from
the dote on which such
poyment becomes due ;

(v) foils to deduct the tox in
occordonce with the
provisions of sub-section (1 )
of section 51, or deducts on
omount which is less thon
the omount required to be
deducted under the soid
sub-section, or where he
foils to poy to the
Government under sub-
section (2) thereof, the
omount deducted os tox ;

Penolty for
certoin
oflences.



271

(vi) foils to collect tox in
occordonce with the
provisions of sub-section (l )
o{ section 52, or collects on
omount which is less thon
the omount required to be
collected under the soid
sutssection or where heloils
to poy to the Government
the omount collected os tox
under sub-section (3) of
section 52 ;

(vii) tokes or utilizes input tox
credit without octuol receipt
of goods or services or both
either fully or portiolly, in
controvention of the provi-
sions of thisAct or the rules
mode thereunder ;

(viii) froudulently obtoins ref und
of tox under this Act ;

(ix) tokes or distributes input tox
credit in controvention ot
section 20, or the rules
mode thereunder ;

(x) folsifies or su bstitutes
finonciol records or
produces foke occounts or
documents orfurnishes ony
folse infor-motion or return
with on intention to evode
Poyment of tox due under
this Act ;

(xi) is lioble to be registered
under this Act but foils to
obtoin registrotion;

(xii) furnishes ony ,olse infor
motion with regord to
reqistrotion porticulors,
either ot the time of opply-
ing for registrotion, or
subsequently;



(xiii) obskucts or prevents ony
officer in dischorge of his
duties under this Act ;

(xiv) tronsports ony toxoble
goods without the cover of
documents os moy be
specified in this beholf ;

(xv) suppresses his turnover
leoding to evosion of tox
under this Act ;

(xvi) foils to keep, mointoin or
retoin books of occount ond
other documents in
occordonce with the
provisions of thisAct or the
rules mode thereunder;

(xvii) foils to furnish informotion
or documents colled for by
on officer in occordonce
with the provisions of this
Act or the rules mode
hereunder or furnishes folse
informotion or documents
du ring ony proceedings
under this Act ;

(xviii) su pplies, tronsports or
stores ony goods which
he hos reosons to believe
ore lioble to confiscotion
under this Act ;

(xix) issues ony invoice or
document by u sin the
registrotion number of
onother registered person;

(xx) tompers with, or destroys
ony moteriol evidence or
documents ;

(xxi) disposes offor tompers wifr
ony goods thot hove
beendetoined, seized, or
ottoched under this Act,



273

he sholl be lioble to poy o penolty of
ten thousond rupees or on omount
equivolent to the tox evoded or the tox
not deduded under sedion 5l or short
deducted or deducted but not poid to
the Government or tox not collected
under section 52 or short collected or
collected but not poid to the
Government or input tox credit ovoiled
of or possed on or distributed
irregulorly, or the refund cloimed
froudulently, whichever is higher.

(21 Any registered person who
supplies ony goods or services
or both on which ony tox hos not
been poid or short-poid or
erroneously refunded, or where
the input tox credit hos been
wrongly ovoiled or utilized,-

(o) for ony reoson, other thon
the reoson offroud or ony
willf ul misstotement or
suppression of focts to
evode tox, sholl be lioble to
o penolty of ten thousond
rupees or ten per cent ofthe
tox due from such person,
whichever is higher ;

(b) for reoson of froud or ony
willf ul misstotement or
suppression of focts to
evode tox, sholl be lioble to
o penolty equol to ten
thousond rupees or the tox
due from such person,
whichever is higher.

(3) Any person who-
(o) oids or obets ony of the

offences specified in
clouses (i) to (xxi) of sub-
section ( l) ;



271

(b) ocquires possession of, or
in ony woy concerns him-
self in tronsporting, remo-
ving, depositing, keeping,
conceoling, supplying, or
purchosing or in ony other
monner deo ls with ony
goods which he knows or
hos reosons to believe ore
lioble to confiscotion under
this Act or the rules mode
thereunder;

(c) receives or is in ony woy
concerned with the supply
of, or in ony other monner
deols with ony supply of
services which he knows or
hos reosons to believe ore
in controvention of ony
provisions of this Act or the
rules mode thereunder;

(d) foils to oppeor before the
officer of Stote tox, when
issued with o summon for
oppeoronce to give evidence
or produce o document in
on inquiry;

(e) foils to issue invoice in
occordonce with the
provisions of thisAct or the
rules mode thereunder or
loils to occount for on invoice
in his books of occount,

sholl be lioble to o penolty
which moy extend to twenty
five thousond rupees.

I 23. lf o person who is required to furnish
on informotion return under section
I 50 foils to do so within the period
specified in the notice issued under
sub-section (3) thereof, the proper

Penolty for
foilure to
furnish
informotion
return.



275

officer moy direct, thot such person
sholl be lioble to poy o penolty of one
hundred rupees for eoch doy of the
period during which the fqilure to
furnish such return continues:

Provided thot the penolty
imposed under this section sholl not
exceed five thousond rupees.

I 24. lf ony person required to furnish ony
informotion or return under section
l5l,-
(o) without reosonoble couse foils to

furnish such informotion or return
os moy be required under thot
section, or

(b) wilfully furnishes or couses to
furnish ony informotion or return
which he knows to be lolse,

he sholl be punishoble with o fine
which moy extend to ten thousond
rupees ond in cose of o continuing
offence to o further fine which moy
extend to one hundred rupees for eoch
doy ofter the first doy during which the
offence continues subject to o
moximum limit of twenty-five thousond
rupees.

I 25. Any person, who controvenes ony of
the provisions of thisAct or ony rules
mode thereunderfor which no penolty
is seporotely provided for in this Act,
sholl be lioble to o penolty which moy
extend to twenty five thousond
rupees.

126. (l) No officer under this Act sholl
impose ony penolty for minor
breoches of tox regulotions or
procedurol requirements ond in
porticulor, ony omission or
mistoke in documentotion which
is eosily rectifioble ond mode
without froudulent intent or gross
negligence.

Fine for
foilure to
fumish
stotistics.

Generol
peno lty.

Generol
disciplines
reloted to
penolty.



276

Explanotion.-For the purpose of this sub-
section,--

(o) o breoch sholl be
considered o' minor breoch'
irthe omount of tox involved
is less thon five thousond
rupees;

(b) on omission or mistoke in
documentotion sho ll be
considered to be eosily
rectilioble if the some is on
error opporent on the foce
of record.

(2) The penolty imposed under this
Act sholldepend on the focts ond
circumstonces of eoch cose ond
sholl commensurote with the
degree ond severity of the
breoch.

(3) No penolty sholl be imposed on
ony person without giving him on
opportunity of being heord.

(4) The officer under this Act sholl
while imposing penolty in on
order for o breoch of ony low,
regulotion or proced u ro I

requirement, specify the noture
ofthe breoch ond the opplicoble
low, regulotion or procedure
under which the omount of
penolty for the breoch hos been
specified.

(5) When o person voluntorily
discloses to on officer under this
Act the circumstonces of o
breoch of the bx low regulotion
or procedurol requirement prior to
the discovery of the breoch by
the officer under this Act, the
proper officer moy consider this
foct os o mitigoting foctor when
quontifying o penolty for thot
person.



Power to
impose
penolty in
certoin
coses.

Power to
woive
penolty or
fee or
both

Detention,
seizure
ond releose
of goods
ond convey-
onces in
tronsit.

277

(6) The provisions of this section
sholl not opply in such coses
where the penolty specified
under this Act is either o fixed
sum or expressed os o {ixed
percentoge.

I 27. Where tlre proper officer is of the view
thot o person is lioble to o penolty
ond the some is not covered under
ony proceedings under section 62 or
section 63 or section 64 or section
73 or section 74 or section .l29 or
section 130, he moy issue on order
levying such penolty ofter giving o

reosonoble opportunity of being
heord to such person.

128. The Government moy, by notificotion,
woive in port or full, ony penolty
referred to in section 122 or section
123 or section 125 or ony lote fee
referred to in section 47 for such
closs of tox poyers ond under such
mitigoting circumstonces os moy be
specified therein on the recommen-
dotions of the Council.

129. (1) Notwithstonding o nyth in g
contoined in thisAct, where ony
person tronsports ony goods or
stores ony goods while they ore
in tronsit in controvention of the
provisions of thisAct or the rules
mode thereunder, oll such goods
ond conveyonce ttsed os o
meons of tronsport for corrying
the soid goods ond documents
reloting to such goods ond
conveyonce sholl be lioble to
detention or seizure ond ofter
detention or seizure, sholl be
releosed,-



278

(o) on poyment of the
opplicoble tox ond penolty
equol to one hundred
per cent. of the tox poyoble
on such goods ond, in cose
of exempted goods, on
poyment of on omount
equol to two per cent of the
volue of goods or twenty five
trousond rupees, whichever
is less, where the owner of
the goods comes fonvord for
poyment of such tox ond
penolty;

(b) on poyment of the
opplicoble tox ond penolty
equol to the fifty per cent.
of the volue of the goods
reduced by the tox omount
poid thereon ond, in cose
o{ exempted goods, on
poyment of on omount
equolto five per cent ofthe
volue of goods or twenty five
thousond rupees, whichever
is less, where the owner of
the goods does not come
forword for poyment ol such
tox ond penolty;

(c) upon furnishing o security
equivolent to the omount
poyoble under clouse (o) or
clouse (b) in such form ond
monner os moy be
prescribed:

Provided thot no such goods or
conveyonce sholl be detoined or
seized without serving on order ol
detention or seizure on the person
tronsporting the goods.



n9
(2) The proisixrs of sub-seclirn (6)

o, section 67 sholl, mutotis
ruAnds, @y tu deEntion ond
seizure of goods ond
conveylmces.

(3) The proper officer detoining or
seizing goods or conveyonces
sholl issue o notice specifying
the tox ond penolty poyoble ond
thereofter, poss on order for
poyment of tox ond penolty
under clouse (o) or clouse (b)or
clouse (c).

(4) No tox, interest or penolty sholl
be determined under sub-section
(3) without giving the person
concerned on opportunity of
being heord.

(5) On poyment of omount referred
in sub-seclion (l ), oll proceedings
in respect of the notice specified
in sub-section (3) sholl be
deemed to be concluded.

(6) Where the person tronsporting
ony goods or the owner of the
goods foils to poy the omount of
tox ond penolty os provided in
sub-seAion (l ) within seven doys
of such detention or seizure,
further proceedings sholl be
initioted in occordonce with the
provisions of section 1 30:

Provided frot where the deioined
or seized goods ore perishoble or
hozordous in noture or ore likely to
depreciote in volue with possoge of
time, the soid period oi seven doys
moy be reduced by the proper officer.



260

130. (l ) Notwithstonding onything
contoined in this Act, if ony
person -
(D supplies or receives ony

goods in controvention of
ony of the provisions of tlris
Act or the rules mode
thereunder with intent to
evode poyment of tox; or

(ii) does not occount for ony
goods on which he is lioble
to poy tox under this Aa;
or

(iii) supplies ony goods lioble to
tox under this Ad without
hoving opplied for
registotion; or

(iv) controvenes ony of the
provisions of thisAd or the
rules mode thereunder with
intent to evode poyment of
tox; or

(v) uses ony conveyonce os o
meons of tronsport for
corrioge of goods in
controvention of the
provisions of this Act or the
rules mode thereunder
unless the owner of the
conveyonce proves thot it
wos so used without the
knowledge or connivonce
of the owner h imsell,
his ogent, if ony, ond the
person in chorge of the
conveyonce,

then, oll such goods or conveyonces
sholl be lioble to confiscotion ond the
person sholl be lioble to penolty under
section 122.

Confiscotion
of goods or
convey-
onces ond
levy of
penolty.



2tt
(2) Whenever confiscoUon of ony

goods or conveyonce is outho.
rised by this Act, the officer
odiudging it sholl give to the
owner of the goods on option to
poy in lieu ol confiscotion, such
fine os the soid officer thinks fit:

Provided thot such fine levioble
sholl not exceed the morket volue of
the goods confiscoted, less the tox
chorgeoble thereon:

Provided further thot the
oggregote of such fine ond penolty
levioble sholl not be less thon the
omount of penolty levioble under suts
section (l ) of sedion 129:

Provided olso trot where ony such
conveyonce is used for the corrioge
of the goods or possengers for hire,
the owner oI the conveyonce sholl be
given on option to poy in lieu of the
confiscotion of the conveyonce o fine
equol to the tox poyoble on the goods
being tronsported thereon.

(3) Where ony fine in lieu of
con{iscotion of goods or
conveyonce is imposed under
sub-section (2), the owner of
such goods or conveyonce or *re
person refened to in sub-section
(1), sholl, in oddition, be lioble to
ony tox, penolty ond chorges
poyoble in respect of such goods
or conveyonce.

(4) No order for confiscotion of goods
or conveyonce or for imposition
of penolty sholl be issued
without giving the person on
opportunity of being heord.



2 oI 1974.

2E2

(5) Where ony goods or con\reyorrce
ore confiscoted under this AcL
the title of such goods or
conveyonce sholl trereupon vest
in the Govemment.

(6) The proper officer odjudging
confiscotion sholl toke ond hold
possession of the things
confiscoted ond every officer of
Police, on fie requisition of such
proper officer, sholl ossist him in
toking ond holding such
possession.

(7) The proper officer moy, ofter
sotisfying himsel, thot the
confiscoted goods or conve-
yonce ore not required in ony
other proceedings under thisAct
ond ofter giving reosonoble time
not exceeding three months to
poy fine in lieu of confiscotion,
dispose of such goods or
conveyonce ond deposit $e sole
proceeds thereof with the
Govemment

l3l. Without preiudice to the provisions
contoined in the Code of Criminol
Procedure, I 973, no conliscotion
mode or penolty imposed under the
provisions oI fiis Ad or the rules mode
thereunder sholl prevent the infliction
of ony other punishment to which the
person offeded thereby is lioble under
the provisions of thisAct or under ony
other low for the time being in force.

132. (l ) Whoever commits ony ot the
following offences, nomely:-
(o) supplies ony goods or

services or both without
issue of ony invoice, in
violotion of the provisions of

Confisco-
tion or
penolty not
to interfere
with other
punish-
ments.

Punishment
for certoin of-
fences



283

this Act or tfre rules mode
thereunder, with the
intention to evode tox;

(b) issues ony invoice or bill
wittout suppty ol goods or
services or both in violotion
of the provisions of lhis
Act, or the rules mode
thereunder leoding to
wronglul ovoilment or
utilisotion of input tox credit
or refund of tox;

(c) ovoils inputtox credit using
such invoice or bill referred
to in clouse (b);

(d) colleas ony omount os tox
but foils to poy the some to
the Government beyond o
period of three rnontrs from
the dote on which such
poyment becomes due;

(e) evodes tox, froudulently
ovoils input tox credit or
f roudulently obtoins refu nd
ond where such offence is
not covered under clouses
(o) to (d);

(f) Io lsif ies or substitutes
finonciol records or
produces foke occounts or
documents or furnishes
ony lolse informotion wih on
intention to evode poyment
of tox due under this Ad;

(g) obstructs or prevents ony
officer in the dischorge of
his duties under this Ad;

(h) ocquhes possession of, or
in ony woy concerns
himsell in tronsporting,
removing, depositing,



(k)

2M

keeping, conceoling,
supplying, purchosing or in
ony other monner deols
with, ony goods which he
knows or hos reosons to
believe ore lioble to con-
fiscotion under this Ad or
ttre rules mode thereunder;

receives or is in ony woy
concerned with the suPPly
of, or in ony other monner
deols with ony supply of
services which he knows or
hos reosons to believe ore
in controvention of ony
provisions of thisAd or the
rules mode thereunder;

tompers with or destroys
ony moteriol evidence or
documents;

foils to su pply ony
informotion which he is
required to supply under his
Act or the rules mode
thereunder or (unless with
o reosonoble belief, the
burden of proving which
sholl be upon him, thot the
informotion supplied by him
is true) supplies folse
informotion; or

(l) ottempts to commit, or
obets the commission of
ony of the offences
mentioned in clouses (o) to
(k) of this section, sholl be
punishoble--

(i) in coses where the omount of tox
evoded or the omount of input tox
credit wrongly ovoiled or utilised
or the omount of refund wrongly

(i)

0



285

token exceeds five hundred lokh
rupees, with imprisonment for o
term which moy extend to five
yeors ond with fine;

(ii) in coses where the omount of
hx evoded or the omount of input
tox credit wrongly ovoiled or
utilised or the omount of refund
wrongly token exceeds two
hundred lokh rupees but does
not exceed five hundred lokh
rupees, with imprisonment for o
term which moy extend to three
yeors ond with fine;

(iii) in the cose of ony other offence
where fre omount of tox evoded
or the omount of inputtox credit
wrongly ovoiled or utilised orthe
omount ol refund wrongly token
exceeds one hundred lokh
rupees but does not exceed two
hundred lokh rupees, with
imprisonment for o term which
moy extend to one yeor ond wittr
fine;

(iv) in coses where he commits or
obets the commission of on
offence specffied in clouse (0 or
clouse (g) or clouse (i), he sholl
be punishoble with imprison-
ment for o term which moy
extend to six months or with fine
or with both.
(2) Where ony person convictd

of on oftence under his sec-
tion is ogoin convicted ol on
offence under this section,
then, he sholl be punishoble
lor the second ond for every
subsequent offence wih inr
prisonment for o term which
mqy exEnd to fve yeors ond
wih fine.



26
(3) The imprisonment refened

to in clouses (i), (ii) ond
(iii) ol sub-section (l) ond
sub-sectir (2) sholl, in the
obsence ol speciol ond
odequote reosons to the
contory to be recorded in
the iudgment ol the Court,
be ,or o term not less thon
six months.

(4) Notwithstonding onything
conloined in the Code ol
Criminol Procedure, 1973,
oll otfences under fris Act,
excefl lhe offences relened
to in subsection (5) sholl
be noncognizoble ond
boilotie.

(5) The offences specified in
clouse (o) or clouse (b) or
clouse (c) or clouse (d) of
sub-section (l ) ond
punishoble under clouse (i)
of thot sub-section sholl be
cognizoUe ond nonboihble.

(6) A person sholl not be
prosecuted for ony offence
under this sedion except
with the previous sonction
of the Commissioner.

Explonolion.- Fu the purposes of
this section, the term lox" sholl
include the omount of tox evoded or
the omount of input tox creditwrongly
ovoiled or utilised or refund wrongly
token under the provisions of ttis Act,
the Centrol Goods ond Services Tox
Act, the lntegroted Goods ond
Services Tox Act, ond cess levied
under the Goods ond Services Tox
(Compensotion to Stotes) Act.



287

133. (l) Where ony person engoged in
connection with the colledion o{
stotistics under section l5l or
compilotion or computerisotion
thereof or if ony officer of Stote
tox hoving occess to informotion
specified under sub.section (l )
of section 150, or if ony person
engoged in connection with lhe
provision ol service on the
common portol or the ogent of
common portol, wilfully
discloses ony informotion or the
contents of ony return furnished
under this Act or rules mode
thereunder otherwise thon in
execution of his duties under the
soid sections or for the purposes
of prosecution for on offence
under this Act or under ony olher
Ad for the time being in force,
he sholl be punishoble with
imprisonment for o term which
moy extend to six mon$s or wittr
fine which moy extend to twenty
five thousond rupees, or with
bottt.

(2) Any person -
(o) who is o Government

servont sholl not be
prosecuted for ony offence
under this section except
with the previous sonction
of the Government

(b) who is not o Government
servont sholl not be
prosecuted lor ony offence
under this section except
with the previous sondion
of the Commissioner.

Liobility ol
officers ond
certoin otter
persons.



2EE

I 34. No court sholl toke cognizonce of ony
offence punishoble under this Ad or
the rules mode thereunder except witt
the previous sonction of the
Commissioner, ond no court inferior
to thot of o Mogistrote of the First
Closs, sholl try ony such offence.

I 35. ln ony prosecution lor on offence under
this Act which requires o culpoble
mentol stote on the port ol the
occused, the court sholl presume the
existence of such mentol stote but it
sholl be o defence for the occused to
prove the loct tfrot he hod no such
mentol stote with respect to the oct
chorged os on offence in thot
prosectrtion.

Explonotion.- For the purposes of this
section,-
(i) the expression "culpoble mentol

stote" includes intention, motive,
knowledge of o focl ond belief in,
or reoson to believe, o loct ;

(ii) o loct is soid to be proved only
when the court believes it to exist
beyond reosonoble doubt ond not
merely when its existence is
estoblished by o preponderonce
of probobility.

136. A stotement mode ond signed by o
p€rson on oppeoronce in response to
ony summons issued under section
70 during the course of ony inquiry or
proceedings under this Aa sholl be
relevont,lorthe purpose of proving, in
ony prosecution for on offence under
this Ad, the truth of the focts which it
contoins,-
(o) when the person who mode the

stotement is deod or connot be
found, or is incopoble of giving

Cognizonce
d
offences.

Presumption
of culpoble
mentolstote.

Relevoncy
d
stotements
under cerbin
circum-
stonces.



(b)

r37.0)

(2)

289

evidence, or is kept out oI the
woy by the odverse porty, or
whose presence connot be
obtoined without on omount of
deloy or expense which, under
the circumstonces of the cose,
tre court considers unreosonoble
;or
when the person who mode the
stotement is exomined os o
witness in the cose before the
court ond the court is of the
opinion *rot hoving regord to the
circumstonces of the cose, the
stotement should be odmitted in
evidence in tre interest of justice.

Where on offence committed by
o person under this Act is o
compony, every person who, ot
the time the offence wos
committed wos in chorge of, ond
wos responsible to, the compony
for tle conduct of business of tre
compony, os well os the
compony, sholl be deemed to be
guilty of the offence ond sholl be
lioble to be proceeded ogoinst
ond punished occordingly.

Notwithstonding o nyth ing
contoined in sub-section (l ),
where on offence under this Act
hos been committed by o
compony ond it is proved thot
the offence hos been committd
with the consent or connivonce
of, or is ottributoble to ony
negligence on the port of, ony
diredor, monoger, secretory or
other officer of the compony,
such director, monoger,
secretory or other officer sholl
olso be deemed to be guilty of
thot offence ond sholl be lioble
to be proceeded ogoinst ond
punished occordingly.

Offences by
Componies.



290

(3) Where on offence underthisAct
hos been committed by o toxoble
person being o portnership firm
or o Limited Liobility Portnership
or o Hindu Undivided Fomily oro
trust, the portner or korto or
monoging trustee sho ll be
deemed to be guilty oI thot
offence ond sholl be lioble to be
proceeded ogoinst ond punished
occordingly ond the provisions of
sub-section (2) sholl mutotis
mutondis opply to such persons.

(4) Norhing contoined in tris seaion
sholl render ony such person
lioble to ony punishment provided
in this Act, if he proves thot the
offence wos committed without
his knowledge or thot he hod
exercised oll due diligence to
prevent the commission of such
offence.

Explomtiq-For te purposes ol
this section,-
(i) "compony" meons o body

corporole ond includes o
firm or other ossociotion of
individuols; ond

(ii) ldireclof, in relotion to o firm,
meons o portner in the firm.

138. (1) Any offence under thisAct moy,
either before or ofter the institu-
tion of prosecution, be com-
pounded by the Commissioner
on poyment, by the person oc-
cused ol the olfence, to the Cen-
tolGovemment or fp S&e Crcv-
ernment, os the cose moy be, of
such compounding omount in
such monner os moy be pre-
scribed :

Compoun4
ing of
offences.



29r

fto\riled fiol no0rirg conbined in

this seclion sholl opply to -
(o) o person who hos been

ollowed to compound once
in respect of ony of the
olfences specified in
clouses (o) to (0 of sub-
section (l) of section 132
ond the oflences specified
in clouse (l) which ore
relotoble to offences
specified in clouses (o) to
(0 of the soid sub-section ;

(b) o person who hos been
ollowed to compound once
in respect of ony offence,
other thon those in clouse
(o), under thisAd or under
the provisions of ony Stote
Goods ond Services Tox
Act or the Centrol Goods
ond Services Tox Ad or the
Union Territory Goods ond
Services Tox Act or the
lntegroted Goods ond
Services Tox Act in respect
of supplies of volue
exceeding one crore
rupees ;

(c) o person who hos been
occused of committing on
offence under this Act which
is olso on offence under ony
other lowfor the time being
in force ;

(d) o person who hos been
convicted for on offence
under this Act by o court ;



292

(e) o person who hos been
occused of committing on
offence specified in clouse
(g) or clouse (j) or clouse
(k) of sub-section (l) of
section 132 ; ond

(fl ony other closs of persons
or oflences os moy be
prescribed :

Provided further thot ony com-
pounding ollowed under tle provisions

ofthis section sholl not offect the pro-

ceedings, i{ ony, instituted under ony
other low :

Provided olso thot compounding
sholl be ollowed only ofter moking
poyment of tox, interest ond penolty
involved in such offences.

(2) The omountfor compounding of
offences underthis section sholl
be such os moy be prescribed,
subiect to the minimum omount
not being less thon ten thousond
rupees or fifty per centofthe tox
involved, whichever is higher, ond
the moximum omount not being
less thon thirty thousond rupees
or one hundred ond fifty per cent
of the tox, whichever is higher.

(3) On poyment of such compound-
ing omount os moy be deter-
mined by the Commissioner, no
further proceedings shollbe ini-
tioted under thisAct ogoinst the
occused person in respect ofthe
some offence ond ony criminol
proceedings, if olreody initioted
in respect of the soid offence,
shollstond oboted.



293

CHAPTER-XX

TRANSITIONAL PROVISIONS

r39.(r)

(2)

(3)

r40. (r)

On ond from the oppointed doy,
every person registered under
ony of the existing lows ond
hoving o volid Permonent
Account Number sholl be issued
o certificote of registrotion on
provisionol bosig subjed to such
conditions ond in such form ond
monner os moy be prescribed,
which unless reploced by o finol
certificote of registrotion under
sub-section (2), sholl be lioble
to be concelled if the conditions
so prescribed ore not complied
with.

The finol certificote of registrotion
shollbe gronted in such form ond
monner ond subject to such
conditions os moy be
prescribed.

The certificote of registrotion
issued to o person under sub-
seaion (l ) sholl be deemed to
hove not been issued if the soid
registrotion is concelled in
pursuonce ofon opplicotion filed
by such person thot he wos not
lioble to registrotion under
section 22 or section 24.

A registered person, other thon
o person opting to poy tox under
section 10, sholl be entitled to
toke, in his electronic credit
ledger, credit of the omount of
Volue Added Tox, ond Entry Tox,
if ony, corried {orword in the
return reloting to the period
ending with the doy immediotely
preceding the oppointed doy,
lurnished by him under the
existing low in such monner os
moy be prescribed :

Migrotion ol
existing
toxpoyers.

Tronsitionol
oronge-
ments lor
input tox
credit.



7 4 ol 1956

291

Provided thot the registered
person sholl not be ollowed to toke
credit in the following circumstonces,
nomely :-

(D where the sokl omount of credit
is not odmissible os input tox
credit under this Act or

(ii) where he hos not fumished oll $e
returns required under the
existing low for the period of six
monfrs immediotely preceding
the oppointed dote; or

Provided further that so much of
the soid credit os is ottributoble to orry
doim reloted to seclion 3, sub-seaion
(3) of section 5, sedion 6, section 6A
or subsection (8) of section I of the
Centrol Soles Tox Acl, 1956 which is
not substantioted in the mdnner, ond
within the peiod, prescribed in rule l2
of the Centrol Soles Tox (Registrotion

ond Turnover) Rules, 1957 sholl not
be eligible to be credited to the
electronic credit ledger :

Provided olso that an omount
equivolent to the credit sryified in the
second proviso shall be refunded
under the existing low when the soid
cloims ore substontioted in the
monner prescribed in rule 12 of the
Centrol Soles Tox (Registrotion ond
Turnover) Rules, 1957.

(2) A registered person, other thon
o person opting to poy tox under
section 10, sholl be entitled to
toke, in his electronic credit
ledgel credit of the unovoiled
input tox credit in respect of
copitol goods, not conied forword
in o return, furnished under the



295

existing low by him, for the
period ending with the doy
immediotely preceding the
oppointed doy in such monner
os moy be prescribed :

Provided thot the registered
person sholl not be ollowed to toke
credit unless the soid credit wos
odmissible os input tox credit under
the existing low ond is olso
odmissible os input tox credit under
this Act.

ExplonotiorFF or the purposes of this
section, the expression "unovoiled
input tox credit" meons the omount
thot remoins ofter subtrocting the
omount of input tox credit olreody
ovoiled in respect of copitol goods by
the toxoble person under the existing
low from te oggregote omount of input
tox credit to which the soid person
wos entitled in respect of the soid
copitol goods under the existing low.

(3) A registered person, who wos not
lioble to be registered under the
existing low orwho wos engoged
in the sole of exempted goods
or tox free goods, by whotever
nome colled, or goods which
hove suftbred tox ot the first point
of their sole in the Stote and the
subsequent soles of which ore
not subject to tox in the Stdte
under the existing low butwhich
ore lioble to tox under this Act
orwhere the person wos entitled
to the credit of input tox ot the
time of sole of goods, if ony,
sholl be entitled to toke, in his
electronic credit ledgel credit of
the volue odded tox ond entry tox
in respect of inputs held in stock



296

ond inputs contoined in
semifinished or finished goods
held in stock on the oppointed
doy subject to the following
conditions nomely :-

(i) such inputs or goods ore
used or intended to be used
for moking toxoble supplies
under this Act ;

(ii the soid registered person
is eligible for input tox credit
on such inputs under this
Act ;

(iii) the soid registered person
is in possession of invoice
or other p rescribed
documents evid e n cing
poyment of tox under the
existing low in respect of
such inputs; ond

(iv) such invoices or other
prescribed docu ments
were issued not eorlier thon
twelve months immediotely
preceding the oppointed
doy:

Provided thot where o registered
person, other thon o monufocturer or
o supplier of services, is not in
possession of on invoice or ony other
documents evidencing poyment of tox
in respect of inputs, then, such
registered person sholl, subiect to
such cond itions, limitotions ond
sofeguords os moy be prescribed,
including thot the soid toxoble person
sholl poss on the benefit of such credit
by woy of reduced prices to the
recipient, be ollowed to toke credit ot
such rote ond in such monneros moy
be prescribed.



297

(4) A registered person, who wos
engoged in the sole of toxoble
goods os well os exempted
goods or tox free goods, by
whotever nome colled, underthe
existing low but which ore lioble
to tox under this Act, sholl be
entitled to toke, in his electronic
credit ledgel-
(o) the omount of credit of the

volue odded tox ond entry
tox, if ony, corried forword
in o return furnished under
the existing low by him in
occordonce with the
provisions of sub-section (1);
ond

(b) the omount ol credit of the
volue odded tox ond entry
tox, if any, in respect of
inputs held in stock ond
inputs contoined in semi-
finished or finished goods
held in stock on the
oppointed doy, reloting to
such exempted goods or tox
free goods, by whotever
n o me col led, in occor donce
with the provisions of sub-
section (3).

(5) A registered person sholl be
entitled to toke, in his electronic
credit ledger, credit of volue
odded tox qnd entry tox, if ony,
in respect of inputs received on
or ofter the oppointed doy but the
tox in respect of which hos been
poid by the supplier under the
existing low, subject to the
condition thot the invoice or ony
other tox poying document ofthe
some wos recorded in the books
o{ occount of such person within
o period of thirty doys from the
oppointed doy :



298

Provided thot the period of thirty
doys moy, on sufficient couse
being shown, be extended by the
Commissioner for o further period not
exceeding thirty doys:

Provided further thot the soid
registered person sholl furnish o
stotement, in such monner os moy
be prescribed, in respea of creditthot
hos been token under his subsection.

(6) A registered person, who wos
either poying tox ot o fixed rote
or poying o fixed omount in lieu
of the tox poyoble under the
existing low sholl be entitled to
toke, in his electronic credit
ledger, credit of volue odded tox
in respect of inputs held in stock
ond inputs contoined in semi-
finished or finished goods held in
stock on the oppointed doy
subiect to the following con-
ditions, nomely :-

(i) such inputs or goods ore
used or intended to be used
for moking toxoble supplies
under this Act ;

(ii) the soid registered person
is not poying tox under
section I 0 ;

(iii) the soid registered person
is eligible for input tox credit
on such inputs under this
Act ;

(iv) the soid registered person
is in possession of invoice
or other prescribed
documents evid en cing
poyment of tox under the
existing low in respect of
inputs; ond



299

(v) such invoices or other
prescribed documents were
issued not eorlier thon
twelve months immediotely
preceding the oppointed
doy.

(7) The omount of credit under sub-
sections (3), (4) ond (6) sholl be
colculoted in such monner os
moy be prescribed.

l4l . (l ) Where ony inputs received ot o
ploce of business hod been
despotched os such or
despotched ofter being portiolly
processed to o job worker for
furttrer processing, testing, repoir,

reconditioning or ony other
purpose in occordonce with the
provisions of existing low prior to
the oppointed doy ond such
inputs ore returned to the soid
ploce on or ofter the oppointed
doy, no lox sholl be poyoble if
such inputs, ofter completion of
the job work or otherwise. ore
returned to the soid ploce within
six months from the oppointed
doy :

Provided thot the period ol six
months moy, on sulficient couse being
shown, be extended by the Commis-
sioner for o further period not
exceeding two months :

Provided furtherthot if such inputs
ore not returned within the period
specified in this sub-section, the input
tox credit sholl be lioble to be
recovered in occordonce with the
provisions of clouse (o) of sub-section
(8) of section 142.

Tronsitionol
provisions
reloting
to job work.



300

(2) Where ony semi-finished goods
hod been despotched from the
ploce of business to ony other
premises for corryinq out certoin
monufocturing processes in
occordonce with the provisions
of existing low prior to the
oppointed doy ond such goods
(hereofter in this sub-section
referred to os'the soid goods)
ore returned tothe soid ploce on
or ofter the oppointed doy, no tox
shollbe poyoble if the soid goods,
ofter undergoing monufocturing
processes or otherwise, ore
returned to the soid ploce within
six months from the oppointed
doy :

Provided thot the period of six
months moy, on sufficient couse being
shown, be extended by the
Commissioner for o further period not
exceeding two months:

Provided further thot if the soid
goods ore not returned within o period
speci{ied in this sub-section, the input
tox credit sholl be lioble to be
recovered in occordonce with the
provisions of clouse (o) of sub-section
(8) of section 142 :

Provided olso thot the person
despotching the goods moy, in
occordonce with the provisions of the
existing low, tronsfer the soid goods
to the premises of ony registered
person for the purpose of supplying
therefrom on poyment of tox in lndio
or without poyment of tox for exports
within the period specified in this sub-
section.



301

(3) Where ony goods hod been
despotched from the ploce ol
business without poyment of tox
for corrying out tests or ony other
process, to ony other premises,
whether registered or not, in
occordonce with the provisions
of existing low prior to the
oppointed doy ond such goods,
ore returned to the soid ploce of
business on or olter the
oppointed doy, no tox sholl be
poyoble if the soid goods, ofter
undergoing tests or ony other
process, ore returned to such
ploce within six months from the
oppointed doy :

Provided thot the period of six
months moy, on sufficient couse
being shown, be extended by the
Commissioner for o further period not
exceeding two months :

Provided further thot if the soid
goods ore not returned within the
period specified in this sub-section,
the input tox credit sholl be lioble to
be recovered in occordonce with the
provisions ol clouse (o) ofsub-section
(8) of section 142 :

Provided olso thot the person
despotching the goods moy, in
occordonce with the provisions o{ the
existing low, tronsfer the soid goods
from the soid other premises on
poyment of tox in lndio or without
poyment of tox for exports within the
period specified in this sub-section.

(4) The tox under sub-sections (l ),
(2) ond (3) sholl not be poyoble,
only if the person despotching
the goods ond the job worker



302

declore the detoils of the inputs
or goods held in stock by the job
worker on beholf ofthe soid per-
son on the oppointed doy in such
form ond monner ondwithin such
time os moy be prescribed.

142. (l) Where ony goods on which tox,
if ony, hod been poid under the
existing low ot the time ol sole
thereof, not being eorlier thon six
months prior to the oppointed
doy, ore returned to ony ploce
of business on or ofter the
oppointed doy, the registered
person sholl be eligible for refund
ofthe tox poid under the existing
low where such goods ore
returned by o person, other thon
o registered person, to the soid
ploce of business within o period
of six months from the oppointed
doy ond such goods ore
identifioble to the sotisfoction of
the proper officer :

Provided thot if the soid goods
ore returned by o registered person,
the return of such goods sholl be
deemed to be o supply.

(2) (o) where, in pursuonce of o
controct entered into prior
to the oppointed doy, the
price of ony goods is revised
upwords on or ofter the
oppointed doy, the regis-
tered person who hod sold
such goods sholl issue to
the recipient o s u pple-
mentory invoice or debit
note, contoining such
porticulors os moy be
prescribed, within thirty
doys of such price revision

Miscello-
neous
tronsitionol
provisions.



303

ond for the purposes of this
Act, such supplementory
invoice or debit note sholl
be deemed to hove been
issued in respect of on
outword supply mode
under this Act ;

(b) where, in pursuonce of o
controct entered into prior
to the oppointed doy, the
price of ony goods is revised
downwords on or ofter the
oppointed doy, the regis-
tered person who hod sold
such goods moy issue to
the recipient o credit note,
contoining such porticulors
os moy be prescribed,
within thirty doys of such
price revision ond for the
purposes of this Act such
credit note sholl be deemed
to hove been issued in
respect of on outword
supply mode under this Act

Provided thot the registered
person sholl be ollowed to reduce his
tox liobility on occount of issue o{ the
credit note only if the recipient of the
credit note hos reduced his input tox
credit conesponding to such reduction
of tox liobility.

(3) Every cloimfor refund filed by ony
person belore, on or ofter the
oppointed doy for refund of ony
omount of input tox credit, tox,
interest or ony other omount poid

under the existing low, sholl be
disposed of in occordonce with
the provisions of existing low ond



304

ony omount eventuolly occruing
to him sholl be refunded to him
in cosh in occordonce with the
provisions of the soid low :

Provided thot where ony cloim
for refund of the omount of input tox
credit is fully or portiolly rejected, the
omount so rejected sholl lopse r

Provided further thot no refund
shollbe ollowed of ony omount of input
tox credit where the bolonce of the
soid omount os on the oppointed doy
hos been corried forword under this
Act.
(4) Every cloim for refund filed ofter

the oppointed doy for refund of
ony tox poid under the existing
low in respect of the goods
exported before or olter the
oppointed doy, sholl be disposed
of in occordonce with the
provisions ol the existing low :

Provided thot where ony cloim
for refund of input tox credit is Iully or
portiolly rejected, the omount so
reiected sholl lopse :

Provided further thot no refund
shollbe ollowed ofony omountof input
tox credit where the bolonce of the
soid omount os on the oppointed doy
hos been corried forword under this
Act.

(5) Notwithstonding onything to the
controry contoined in this Act,
ony omount of input tox credit
reversed prior to the oppointed
doy sholl not be odmissible os
input tox credit under this Act.



305

(5) (o) every proceeding of oppeol,
revision. review or reference
reloting to o cloim for input
tox credit initioted whether
before, on or ofter the
oppointed doy under the
existing low sholl be
disposed of in occordonce
with the provisions of the
existing low. ond ony
omount of creditfound to be
odmissible to the cloimont
sholl be refunded to him in
cosh in occordonce with the
provisions of the existing
low, ond the omount
rejected, if ony, sholl not be
odmissible os in put tox
credit under this Act :

Provided thot no refund sholl be
ollowed of ony omount of input tox
credit where the bolonce of the soid
omount os on the oppointed doy hos
been corried Iorword under this Act ;

(b) every proceeding ofoppeol,
revision, review or reference
reloting to recovery of input
tox credit initioted whether
before, on or olter the
oppointed doy under the
existing low sholl be
disposed of in occordonce
with the provisions of the
existing low, ond if ony
omount of credit becomes
recoveroble os o result of
such oppeol, revision,
review or reference, the
some sholl, unless



(7) (o)

(b)

306

recovered under tre existing
low, be recovered os on
orreor of tox under this Act
ond the omount so
recovered sholl not be
odmissible os input tox
credit under this Act.

every proceeding of oppeol,
revision, review or reference
reloting to ony output tox
liobility initioted whether
before, on or o{ter the
oppointed doy under the
existing low, sholl be
disposed of in occordonce
with the provisions of the
existing low, ond if ony
omount becomes recover-
oble os o result of such
oppeol, revision, review or
reference, the some sholl,
unless recovered under the
existing low, be recovered
os on orreor of tox under
this Act ond the omount so
recovered sholl not be
odmissible os input tox
credit under this Act.

every proceeding of oppeol,
revision, review or reference
reloting to ony output tox
liobility initioted whether
before. on or ofler the
oppointed doy under the
ex istin g low, sholl be
disposed of in occordonce
with the provisions of the
existing low, ond ony
omount found to be
odmissible to the cloimont
sholl be refunded to him in



307

cosh in occordonce with the
provisions of the existing
low ond the omount rejec-
ted, if ony, sholl not be
admissible os input tox
credit under this Act.

(8)(o) where in pursuonce of on os-
sessment or odjudicotion
proceedings instituted,
whether before, on or ofter
fre oppointed doy under *re
existing low, ony omount of
tox, interest, fine or penolty
becomes recoveroble from
the person, the some sholl,
unless recovered under the
existing low, be recovered
os on orreor of tox under
this Act ond the omount so
recovered sholl not be od-
missible os input tox credit
under this Act ;

(b) where in pursuonce ol on
ossessment or odiudicotion
proceedings instituted,
whether before, on or ofter
the oppointed doy under the
existing low ony omount of
tox, interest, fine or penolty
becomes refundoble to the
toxoble person, the some
sholl be refunded to him in
cosh undertre soid /ory ond
the omount rejected, if dny,
sholl not be odmissible os
input tox credit under this
Act.

(9) (o) where ony return, furnished
under the existing low, is
revised ofter the oppointed
doy ond ii, pursuontto such



108

revision, ony omount is
found to be recoveroble or
ony omount of input tox
credit is found to be
inodmissible, the some
sholl, u nless recovered
under the existing low, be
recovered os on orreor of
tox under this Act ond the
omount so recovered sholl
not be odmissible os input
tox credit under this AcU

(b) where ony return, furnished
under the existing low, is

revised ofter the oppointed
doy but within the time limit
specified for such revision
under the existing low ond
ff, pursuontto such revision,

ony omount is Iound to be
refu ndoble or input tox credit

is found to be odmissible to

ony toxoble person, the
some sholl be refunded to
him in cosh under the
existing low, ond the
omount rejected, if ony,
sholl not be odmissible os
input tox credit under this
Act.

(10) Sove os otherwise provided in

this Chopter, the goods or
services or both supplied on or
olter the oppointed doy in
pursuonce of o controct entered
into prior to the oppointed doy
sholl be lioble to tox under the
provisions of this Act.



3 of 2005

32 ol 1994

3 of 2005

32 ol 1994

109

(11) (o) not withstonding onything
contoined in section 12, no
tox sholl be poyoble on
goods under this Act to the
extent the tox wos levioble
on the soid goods underthe
Arunochol Prodesh Goods
Tox Act, 2005;

(b) notwithstonding onything
contoined in section I3, no
tox sholl be poyoble on
services under this Act to
the extent the tox wos
levioble on the soid services
under Chopter V of the
Finonce Act, I 994;

(c) where tox wos poid on ony
sup p ly, both under the
Arunochol Prodesh Goods
Tox Act, 2005 ond under
Chopter V of the Finonce
Act, 1994, tox sholl be
levioble under this Act ond
the toxoble person sholl be
entitled to toke credit o{
volue odded tox or service
tox poid under the existing
low to the extent of supplies
mode ofter the oppointed
doy ond such credit sholl be
colculoted in such monner
os moy be prescribed.

(12) Where ony goods sent on
opprovol bosis, not eorlier thon
six months before the oppointed
doy, ore rejected or not opproved
by the buyer ond returned to the
seller on or ofter the oppointed
doy, no tox sholl be poyoble
thereon if such goods ore
returned within six months from
the oppointed doy:



3 of 2005

310

Provided thot the soid period of
six months moy, on sufficient couse
being shown, be extended by the
Commissioner for o further period not
exceeding two months :

Provided further thotthe tox sholl
be poyoble by the person returning
the goods if such goods ore lioble to
tox under this Act, ond ore returned
ofter the period speci{ied in this sub-
section:

Provided olso thot tox sholl be
poyoble by the person who hos sent
the goods on opprovol bosis ii such
goods ore lioble to tox under thisAct,
ond ore not returned within the period
specified in this sub-section.

(l 3) Where o supplier hos mode ony
sole of goods in respeaof which
tox wos required to be deducted
ot source under the Arunochol
Prodesh Goods T.ix Aa, 2005 ond
hos olso issued on invoice for the
some before the oppointed doy,
no deduction of tox ot source
under section 5l sholl be mode
by the deductor under the soid
section where poymentto the soid
supplier is mode on or ofter the
oppointed doy.

(14) Where ony goods or copitol goods
belonging to the principolore lying
ot the premises of the ogent on
the oppointed doy, the ogent sholl
be entitled to toke credit of the
tox poid on such goods or copitol
goods subject to iulfilment of the
following conditions :

(i) the ogent is o registered
toxoble person under this
ACt ;



3 of 2005.

3ll
(iD botr the principol ond the

ogent declore the detoils of
stock of goods or copitol
goods lying witr such ogent
on the doy immediotely
precedng the oppointed doy
in strdr brm ond monner ond
within such time os moy be
prescribed in this beholf ;

(iii) the invoices lor such goods
or copitol goods hod been
issued not eorlier thon
twefue months immediotely
preceding tte oppcinH doy;
ord

(iv) the principol hos either
reversed or not ovoiled oI he
input tox credit in respect of
such,-

(o) goods; or
(b) copitolgoods or, hoving

ovoiled of such credit,
hos reversed the soid
cred it, to the extent
ovoiled of by him.

Explonotion. -For the purposes ofthis
Chopter, the expression "copitol
goods"sholl hove the some meoning
os ossigned to it in the Arunochol
Prodesh GoodsToxAct, 2005.

CHAPTER. XXI

MISCELLANEOUS

143. (1) A registered person (hereofter in
this section referred to os the
'principol) moy, under intimotion
ond subiect to such conditions
os moy be prescribed, send ony
inputs or copitol goods, without
pqyment ol tox, to o iob worker

Job work pro
cedure.



312

for job work ond lrom there
subsequently send to onother
job worker ond likewise, ond
sholl,-
(o) bring bock inputs, qfter

completion of iob work or
ofrerwise, or copitol goods,
other thon moulds ond
dies, iigs ond fixtures, or
tools, within one yeor ond
three yeors, respedively, of
their being sent out, to ony
of his ploce of business,
without poyment of tox ;

(b) supply such inputs, ofter
completion of iob work
or otherwise, or copitol
goods, other thon moulds
ond dies, ligs ond fixtures,
or tools, within one yeor
ond three yeors, respecti-
vely, oftheir being sent out
Irom the ploce of business
of o jobworker on poyment
oJ tox within lndio, or with
or without poyment of tox
for export, os the cose moy
be:

Provided frot *re principol sholl
not supply the goods from the ploce
of business of o job worker in
occordonce with the provisions ofthis
clouse unless the soid principol
declores the ploce of business of the
job worker os his odditionol ploce oI
business except in o cose-

(i) where the job worker is
registered under sedion 25;
or

(ii) where the principol is
engoged in the supply of
such goods os moy be
na'fud futeCommbslmer.



3r3

(2) The responsibility lor keeping
proper occounts for the inputs or
copitol goods sholl lie with the
principol.

(3) Where he inputs sent for job work
ore not received bock by the
principol ofter completion of iob
work or otherwise in occordonce
with the provisions oJ clouse (o)

of sub-section (l) or ore not
supplied from the ploce ol
business of the job worker in
occordonce with the provisions
of clouse (b) of sub-sedion (l)
within o period of one yeor of treir
being sent out, it sholl be
deemed thot such inputs hod
been supplied by tfre principol to
the iob worker on the doy when
the soid inputs were sent out.

(4) Where the copitol goods, other
thon moulds ond dies, jigs ond
fixtures, or tools, sent lor job
work ore not received bock by
the principol in occordonce with
the provisions of clouse (o) of
sub-section (l) or ore not
supplied Irom the ploce of
business of the job worker in
occordonce with the provisions
of clouse (b) of subsection (l)
within o period of three yeors of
their being sent out, it sholl be
deemed thot such copitol goods
hod been supplied by the
principol to the job worker on the
doy when the soid copitol goods
were sent out.

(5) Notwithstonding onything
contoined in sub-sections (1)
ond (2), ony woste ond scrop
generoted during the iob work



'11
moy be supplied by the job
worker directly from his ploce of
business on poyment of tox, if
such lob worker is registered, or
by tte principol, if the job worker
is not registered.

Explonotim-Futre purposes of job
work, input includes intermediote
goods orising from ony treornent or
process conied out on the inputs by
the principol or the lob worker.

I zl4. Where ony document-

(i) is produced by ony person under
thisAct or ony other low for the
time being in force ; or

(ii) hos been seized from the
custody or control of ony
person under this Act or ony
other low for the time being in
force ; or

(iii) hos been received from ony
ploceouside lndio in fre course
of ony proceedings under this
Act or ony other lowforthe time
being in force,

ond such document is tendered by
the prosecution in evidence ogoinst
him or ony other person who is tried
jointly with him, the court sholl-
(o) unlessthe controry is proved by

such person, presume -
(i) the truth ofthe contents of

such document;
(ii) thot the signoture ond

every other port of such
document which purports
to be in the hondwriting of

Presump
tion os to
documents
in certoin
coses.



'15
ony porticulor person or
which the court moy
reosonobly ossume to
hove been signed by, or
to be in the hondwriting
of, ony porticulor
person, is in thot
person's hondwriting,
ond in the cose of o
document executed or
ottested, thot it wos
executed or ottested by
the person by whom it
puports lo hove been so
executed or ottested ;

(b) odmit the document in
evidence notwitf rstonding $ot
it is not duly stomped, if such
document is otherwise
odmissible in evidence.

145. (1) Notwithstonding onything con-
toined in ony other low for the
time being in force, -

(o) o micro film of o docu-
ment or the reproduction
of the imoge or imoges
embodied in such micro
film (whether enlorged or
not) ; or

(b) o focsimile copy of o doctr'
menu or

Admissibil-
ity of
micro films,
locsimile
copies ol
documents
ond
computer
printouts
os docu-
ments ond
os
evidence.



316

(c) o stqtement contoined in o
document ond included in
o printed moteriol produced
by o computer, subjed to
such conditions os moy be
prescribed ; or

(d) ony informotion stored
electronicolly in ony device
or medio, including ony hord
copies mode of such
informotion,

sholl be deemed to be o documentfor
the purposes of thisAct ond the rules
mode thereunder ond sholl be
odmissible in ony proceedings
thereunder, without further prool or
production of tlre originol, os evidence
of ony contents of the originol or of
onyfoct stoted therein of which direct
evidence would be odmissible.

(2) ln ony proceedings under this Aa
ond or tre rules mode ftereunder,
where it is desired to give o
stotement in evidence by virtue
of this section, o certificote,-
(o) identifying the document

contoining the stotement
ond describing the monner
in which it wos produced ;

(b) giving such porticulors of
ony device involved in the
production of thot document
os moy be oppropriote for
tfre purpose of showing thot
the document wos pro-
duced by o computer,

sholl be evidence of ony motter stoted
in the certificote ond for the purposes
of this sub-section it shollbe sufficient
for o motter to be stoted to the best of
the knowledge ond belief of the per-
son stoting it.



3t7

145. The Government moy, on the
recommendotions of the Council,
notify the Common Goods ond
Services Tox Electronic Portol for
focilitoting registrotion, poyment
o{ tox, iurnishing of returns,
computotion ond settlement ot
integroted tox, eledronic woy bill
ond for corrying out such other
Iunctions ond for such purposes os
moy be prescribed.

'l47.The Government moy, on the
recommendotions of the Council,
notify certoin supplies of goods os
"deemed exports", where goods
supplied do not leove lndio, ond
poyment for such supplies is
received eitrer in lndion rupees or in
convertible foreign exchonge, if such
goods ore monuloctured in lndio.

148. The Government moy, on the
recommendotions of the Council,
ond subject to such conditions ond
sofeguords os moy be prescribed,
notify certoin closses of registered
persons, ond tre speciol procedures
to be followed by such persons
including those with regord to
registrotion, furnishing of return,
poyment of tox ond odministrotion
of such persons.

I 49. ( I ) Every registered person moy be
ossigned o goods ond services
tox complionce roting score by
the Government bosed on his
record of complionce with the
provisions of thisAct.

(2) The goods ond services tox
complionce roting score moy be
determined on the bosis of such
poro meters os moy be
prescribed.

Deemed Ex-
ports.

Common
Portol.

Speciol
procdure
for certoin
processes

Goods ond
services
tox compli-
once
roting.



3lt
(3) The goods ond services tox

complionce roting score moy be
updoted ot periodic intervols ond
intimoted to the registered
person ond olso ploced in the
public dornoin in such nnnner os
moy be prescribed.

150. (l) Any person, being-
(o) o toxoble person; or
(b) o locol oulhority or other

public body or ossocio-
tion ; or

(c) ony outhority of the Stote
Govemment responsible for
thecdleclion of volueodded
bx or soles tox or Stote
excise duty or on outhority
of the Centrol Govemment
responsible for the collec-
tion o, excise duty or cus"
toms duty ; or

(d) on income tox outhority op
p<inted under fi e prorisi:m
of the lncome-tox Act,
l96l; or

(e) o bonking compony within
the meoning of clouse (o)
of section 45A of the Re
serve Bonk ol lndio Act,
1934; or

(f) o Sote Eledricity Boord or
on eledricity distribution or
tronsmission licensee un-
der the Electricity Act,
2003, or ony other entity
entrusted with such func-
lions by lhe Centol Govern-
ment or the 9ote Govern-
ment; or

(g) the Registror or Sub-Regis-
tor oppointed under section
6 ot the Registrotaon Ad,
1908; or

Obligotion
lofurnish
informotion
retum.

43 of 1961

2o11934.

36 of 2003

l6 of 1908.



59 of 1988.

30 of 201 3.

42 ol 1956.

2 ot 1934.

3r9

(h) o Registror within the meon-
ing of the Componies Act,
2013; or

(i) the registerinq outhority em-
powered to register motor
vehicles under the Motor
Vehicles Act, 1988; or

0 the Collector referred to in
clouse (c) of section 3 of *re
Right to Foir Compensotion
ond Tronsporenry in Lond
Acquisition, Rehobilitotion
ond Resettlement Act,
2013; or

(k) the recognised stock ex-
chonge relened to in clouse
(0 of sectjon 2 of the Secu-
rities Controcts (Regulo-
tion) Ad, 1956; or

(l) o depository referred to in
clouse (e) of sub-section ( I )
of section 2 ol the Deposi-
tories Acl, 1996; or

(m) on oflicer of the Reserve
Bonk of lndio os constituted
under section 3 of the Re-
serve Bonk of lndio Act,
1934; or

(n) the Goods ond Services
Tox Network, o compony
registered under the Com-
ponies AcL 201 3; or

(o) o person to whom o Unique
ldentity Number hos been
gronted under sub-section
(9) of seaion 25;or

(p) ony otnr person os moy be
specified, on the recom-
mendotions of the Council,
by the Governmenl

18 of 201 3.

22 ol 1996.

l8 of 201 3.



320

who is responsible for mointoining
record of registrotion or stotement of
occounts or ony periodic return or
document contoining detoils of poy-
ment of tox ond other detoils oftrons-
oction of goods or services or both or
tronsoctions reloted to o bonk occount
or consumption of electricity or trons-
oction of purchose, sole or exchonge
of goods or property or right or inter-
est in o property under ony low for the
time being in force, sholl furnish on
informotion return of the some in re-
spect of such periods, within such
time, in such form ond monner ond to
such outhority or ogency os moy be
prescribed.

(2) Where the Commissioner, or on
officer outhorised by him in this
beholf, considers thot the infor-
motion furnished in the informo-
tion return is defective, he moy
intimote the defed to the person
who hos furnished such informo-
tion return ond give him on op-
portunity of rectifying the defect
within o period of fiirty doys from
the dote of such intimotion or
within such further period which,
on on opplicotion mode in this
beholf, the soid outhority moy
ollow ond if the delect is not rec-
tified within the soid period of
thirty doys or, the further period
so ollowed, then, notwithstond.
ing onything contoined in ony
other provisions of this Act, such
informotion return sholl be
treoted os not furnished ond the
provisions of thisAct sholl opply.



(3)

rsr. (r)

t2)

ls2. (1)

321

Where o person who is required
to furnish informotion return hos
notfumished $e some within the
time specified in sub-section (l )
or sub-section (2), the soid
outhority moy serve upon him o
notice requiring fumishing of such
informotion return wihin o period
not exceeding ninety doys from
the dote of service of the notice
ond such person shollfurnish the
informotion return.

The Commissioner moy, if he
considers thot it is necessory so
to do, by notificotion, direo thot
stotistics moy be collected
reloting to ony motter deolt with
by or in connedion with this Act.

Upon such notificotion being
issued, the Commissioner, or
ony person outhorised by him in
this beholi moy coll upon the
concerned persons to furnish
such inlormotion or returns, in
such lorm ond monner os moy
be prescribed, reloting to ony
motter in respect of which
stotistics is to be collected.

No informotion oI ony individuol
retum or port thereof with respect
to ony motter given for the
purposes of section 150 or
section l5l sholl, without the
previous consent in writing of the
concerned person or his
outhorised representotive, be
published in such monner so os
to enoble such porticulors to be
identified os referring to o
porticulor person ond no such
inlormotion sholl be used for the
purpose of ony proceedings
under this Act.

Power to
collect
stotistics.

Bor on
disclosure
d
informotion



322

(2) Except for the purposes of
prosecution under tris Act or ony
other Act for the time being in

force, no person who is not
engoged in the collection oI
stotistics under this Act or
compilotion or compulerisotion
thereof for the purposes of this
Ad, sholl be permitted to see or
hove occess to ony inlormotion
or ony individuol return relerred
to in section l5l.

(3) Nothing in his seclion sholl opply
to the publicotion of ony
inlormotion reloting to o closs ol
toxoble persons or closs ol
tronsoctions, if in the opinion of
the Commissioner, it is desiroble
in the public interest to publish
such inlormotion.

153. Any officer not below the ronk of
Assisbnt Commissioner moy, hoving
regord to the noture ond complexity
of the cose ond the interest of
revenue, toke ossistonce of ony
expert ot ony sbge of scrutiny, inquiry,
investigolion or ony otrer proceedings

before him.

154. The Commissioner or on officer
oufrorised by him moy toke somples
of goods from the possession of ony
toxoble person, where he considers
it necessory, ond provide o receipt for
ony somples so token.

155. Where ony person cloims thot he is
eligible for input tox credit under this
Act the burden of proving such cloim
sholl lie on such person.

Toking
ossistonce
from on
expert.

Power to
toke
somples.

Burden of
Proof.



45 of 1860.

1 of 1872.

323

156. All persons dischorging tunctions
under this Act sholl be deemed to be
public servons within the meoning of
section 2l of the lndion PenolCode.

157. (l ) No suit prosecution or other legol
proceedings sholllie ogoinst the
President, Stote President,
Members, officers or other
employees of the Appellote
Tribunol or ony other person
outhorised by the soid Appellote
Tribunol for onything which is in
good foi6 done or intended to be
done under thisAct or the rules
mode tirereunder.

(2) No suit, prosecution or other legol
proceedings sholl lie ogoinstony
officer oppointed or outhorised
under thisAct for onything which
is done or intended to be done in
good loith under this Act or the
rules mode thereunder.

158. (l) All porticulors contoined in ony
stotement mode, return furni-
shed or occounts or docu-ments
produced in occordonce wittr this
Act or in ony record of evidence
given in the course of ony
proceedings under this Act
(other thon proceedings before o
criminol court), or in ony record
of ony proceedings under thisAcl
sholl, sove os provided in
sub-section (3), not be disclosed.

(2) Notwithstonding onything
contoined in the lndion Evidence
Ad, 1872, no court sholl, sove
os otherwise provided in sub-
sedion (3), require ony officer
oppointed or outhorised under

Persons
deemed to
be public
servonts.

Protection oI
oction token
under this
Act.

Disclosure
of informo-
tion by o
public
servont.



321

this Act to produce belore it or
to give evidence before it in
respect of porticulors relerred to
in subsection (l ).

(3) Nothing contoined in this sedion
sholl opply to the disclosure of,-
(o) ony porticulors in resped

of ony stotement, return,
occounts, documents,
evidence, offidovit or
deposition, for the purpose
of ony prosecution under
tre lndion PenolCode orfre
Prevention of Corruption
Act, 1988, or ony other low
for the time being in force;
or

(b) ony porticulors to the
Centrol Government or the
Stote Government or to ony
person octing in the
implementotion of thisAct,
{or the purposes of corrying
out the objects oi this Acu
0r

(c) ony porticulors when such
disclosure is occosioned by
the lowful exercise under
this Act of ony process for
the service of ony notice or
recovery ofony demond; or

(d) ony porticulors to o civil
court in ony suit or
proceedings, to which the
Government or ony
outhority under this Act is
o porty, which relcrtes to ony
motter orising out of ony
proceedings under this Act

45 of 1860.

49 of 1988.



125

or under ony other low or
the time being in force
outhorising ony such
outhority to exercise ony
powers thereunder; or

(e) ony porticulors to ony officer
oppointed for tte purpose of
oudit of tox receipts or
relunds of the tox imposed
by this Act; or

(0 ony porticulors where such
porticulors ore relevont for
the purposes of ony inquiry
into the conduct of ony
officer oppointed or
outhorised under this Ad,
to ony person or persons
oppointed os on inquiry
officer under ony lowforthe
time being in force; or

(g) ony such porticulors to on
officer of the Centrol
Government or of ony Sffie
Government, os moy be
necessory for the purpose
of enobling thot
Government to levy or
reolise ony tox or duty; or

(h) ony porticulors when such
disclosure is occosioned by
the lowful exercise by o
public servont or ony other
stohrtory outhority, of his or
its powers under ony lowfor
the time being in force; or

0 ony porticulors relevont to
ony inquiry into o chorge of
misconduct in connection
witr ony proceedings under
thisAct ogoinst o proctising
odvocote, o bx proctitioner,



)26

o proctising cost occoun-
tont, o proctising chortered
occountont, o proctising
compony secretory to the
outhority empowered to
toke disciplinory oction
ogoinst the members
proctising the profession of
o legol proctilioner, o cost
occountont, o chortered
occountonl or o compony
secretory os the cose moy
be; or

(i) ony porticulors to ony
ogency oppointed {or the
purposes ol doto entry on
ony outomoted system or
for the purpose of operoting,
upgroding or mointoining
ony outomoted system
where such ogency is
controctuolly bound not to
use or disclose su ch
porticulors except for the
oforesoid purposes; or

(k) ony such porticulors to on
olficer of fre Government os
moy be necessory lor the
purposes oI ony other low
for the time being in force;
ond

(l) ony informotion reloting to
ony clo ss of toxoble
persons or closs of
tronsoctions for publicotion,

if, in the opinion of the
Commissioner, it is
desiroble in the public
interest, to publish such
informotion.



,n
I 59. ( I ) lf tte Comrnissioner, or ony oher

olficer outhorised by him in this
beholf, is o( the opinion thot it is
necessory or expedient in the
public interest to publish the
nome of ony person ond ony
other portkulors reloting to ony
proceedings or prosecution
under this Act in resped of such
person, it moy couse to be
published such nome ond
porticulors in such monner os it
fiinks fit.

(l) llo publicotion under this section
sholl be mode in relotion to ony
penolty imposed under this Act
until the time for presenting on
oppeol to he Appellote Auhority
under section 107 hos expired
without on oppeol hoving been
presented or the oppeol, if
presented, hos been disposed of.

Explanalfun.-lnlhe cose of firm,
compony or other ossociolion of
persons, the nomes ofthe portners of
the firm, directors, monoging ogents,
secretories ond treosurers or
monogers of the compony, or the
members oI the ossociotion, os the
cose moy be, moy olso be published
i{, in the opinion of fie Commissioner,
or ony other officer outhorised by him
in this beholf, circumstonces of the
cose justify it.

160. ('l) No ossessnent, reossessment,
odjudicotion, review, revision,
oppeol, rectificotion, notice,
summons or other proceedings
done, occepted, mode, issued,
initioted, or purported to hove

Rrblicotion
d
informotion
in respect
of persons
in certoin
coses.

Assessment
proceedings,
etc. not to
be involid
on certoin
grounds.



324

been done, occepted, mode,
issued, initioted in pursuonce of
ony of the provisions of this Act
sholl be involid or deemed to be
involid merely by reoson of ony
mistoke, defect or omission
therein, if such ossessment, re-
ossessment, odjudicotion,
review, revision, oppeol,
rectificotion, notice, summons or
other proceedings ore in
substonce ond effect in con-
formity with or occording to the
intents, purposes ond require
ments of this Act or ony existing
low.

(2) The service of ony notice, order
or communicotion sholl not be
colled in question, if the notice,
order or communicotion, os the
cose moy be, hos olreody been
octed upon by the person to
whom it is issued or where such
service hos not been colled in
question ot or in the eorlier
proceedings commenced,
continued or fi nolised pursuontto
such notice, order or communi-
cotion.

'l6l . Without preiudice to the provisions of
section I60, ond notwithstonding
onything contoined in ony other
provisions of this Act, ony outhority,
who hos possed or issued ony
decision or order or notice or
certificote or ony otrer document moy
rectify ony error which is opporent on
the foce of record in such decision or
order or notice or certificote or ony
other document, either on its own
motion or where such error is brought

Rectifico-
tion of
errors
opporent on
the foce of
record.



329

to its notice by ony officer oppointed
under thisAct or on officer oppointed
under tre Cenrol Goods ond Services
ToxAcr or by the offected person witrin
o period of three months fiom the dote
oI issue of such decision or order or
notice or certificote or ony other
document, os the cose moy be:

Provided trqt no such rectifcotion
sholl be done ofter o period oI six
months from the dote of issue o, such
decision or order or notice or
certificote or ony other document:

Provided further thot the soid
period of six months sholl not opply
in such coses where the rectificotion
is purely in the noture oI correction of
o clericol or orithmeticolenor, orising
from ony occidentol slip or omission:

Provided olso thot where such
rectificotion odversely offects ony
person, tre principles of noturoljustice
sholl be followed by the outhority
corrying out such rectificotion.

162. Sove os provided in sections I I 7 ond
'I18, no civil court sholl hove
iurisdiction to deol with or decide ony
question orising lrom or reloting to
onyltring done or purported to be done
under this Act.

163. Wherever o copy of ony order or
document is to be provided to ony
person on on opplicotion mode by him
Ior thot purpose, there sholl be poid
such fee os moy be prescribed. Levy
of fee.

164. (1) The Government moy, on the
recommendotions of fre Council,
by notif icotion, moke rules
forcorry- ing out tlre provisions oI
this Act.

Bor on
jurisdidion

oI civil
courts.

Power of

Government
to moke
rules.



,30

(2) Without preludice to the
generolity of the provisions ol
sub-seclion ( I ), tre Government
moy moke rules for oll or ony oI
the motters which by this Act ore
required to be, or moy be,
prescribed or in respea ol which
provisions ore to be or moy be
mode by rules.

(3) The power to moke rules
conferred by this sedion sholl
include the power to give
retrospeclive effect to the rules
or ony of them from o dote not
eorlier tron tre dote on which the
provisions of this Ad come into
force.

(4) Any rules mode under sub-
seclion (l) or sub-section (2)
moy provide thot o controvention
trereof sholl be lioble to o penolty
not exceeding ten thousond
rupees.

165. The Government moy, by notificqtion,
moke regulotions consistent with this
Act ond the rules mode thereunder
to corry out the provisions of thisAct.

1 66. Every rule mode by the Governmenq
every regulotion mode by the
Government ond every notificotion
issued by the Government underthis
Act, sholl be loid, os soon os moy be
ofter it is mode or issued, before the
Stote Legisloture, while it is in
session, for o totol period of thirty
doys which moy be comprised in one
session or in two or more successive
sessions, ond if, before the expiry of
he session immediotely {ollowing fle
session or the successive sessions
oforesoid, the Stote Legisloture

Power to
moke
regulotions

Loying ot
rules,
regulotions
ond
notifico-
tions.



331

ogrees in moking ony modificotion in
the rule or regulotion or in the
notificotion, os the cose moy be, or
he Stote Legisloture ogrees thot the
rule or regulotion or the notificotion
should not be mode, the rule or
regulotion or notificotion, os the cose
moy be, sholl thereofter hove effect
only in such.

128, The &unodol Prodesh Exroordinory
Gozette, J une 24 20 I 7 modified form
or be of no etfed, os the cose moy
be; so, however, thot ony such
modificotion or onnulment sholl be
without prejudice to the volidity of
onything previously done under thot
rule or regulotion or notificotion, os
the cose moy be.

167.The Commissioner moy, by
notificotion, dkect trot subiect lo such
conditions, if ony, os moy be
specified in $e notificotion, ony power
exercisoble by ony outhority or officer
under this Ad moy be exercisoble
olso by onother outhority or officer os
moy be specified in such notificotion.

168. The Commissioner moy, if he consi-
ders it necessory or expedient so
to do for the purpose of uniformity
in the implementotion of this Act,
issue such orders, inslructions or
directions to the Stote tox officers
os it moy deem fit, ond thereupon
oll such officers ond oll other
persons employed in the
implemenlotion of this Act sholl
observe ond follow such orders,
instructions or directions.

Delegotion
d
powers.

Power to
issue
instrudions
q
diredions.



332

169. ('l) Any decision, order, summons,
notice or other communicotion
under thisAd or the rules mode
trereunder sholl be served by ony
one of the following methods,
nomely:--

(o) by giving or tendering it
directly or by o messenger
including o courier to the
oddressee or the toxoble
person orto his monoger or
outhorised representotive or
on odvocote or o tox
proctitioner holding
outhority to oppeor in the
proceedings on beholf oI he
toxoble person or to o
person regulorly employed
by him in connection with
the business, orto onyoduh
member of fomily residing
with the toxoble person; or

(b) by registered post or speed
post or courier with
ocknowledgement due, to
the person fo[ whom it is
intended or his outhorised
representotive, if ony, ot his
lost known ploce of
business or residence; or

(c) by sending o
communicotion to his emoil
oddress provided crt the time
of registrotion or os
omended from time to time;
or

(d) by moking itovoiloble on the
common portol; or

(e) by publicotion in o
newspoper circuloting in
the locolity in which the

Service of
notice in
certoin
circum-
stonces.



333

toxoble person or the
person to whom it is issued
is lost known to hove
resided, corried on
business or personolly
worked for goin; or

(f) if none of the modes
oforesoid is prodicoble, by
offixing it in some
conspicuous ploce ot his
lost known ploce of
business or residence ond
i{ such mode is not
prodicoble for ony reoson,
then by offixing o copy
thereof on the notice boord
of the office of the
concerned officer or
outhority who or which
possed such decision or
order or issued su ch
summons or notice.

(2) Every decision, order, summons,
notice or ony communicotion
sholl be deemed to hove been
served on the dqte on which it is
tendered or published or o copy
thereof is offixed in the monner
provided in subsedion ( l ).

(3) When such decision, order,
summons, notice or ony
communicotion is sent by
registered post or speed post, it
sholl be deemed to hove been
received by F,e oddressee ot the
expiry of the period normolly
token by such post in tronsit
unless the controry is proved.

170. The omount of tox, interest, penolty,
fine or ony other sum poyoble, ond
the omount of refund or ony other sum

Rounding off
d
tox etc.



tll
due, under tre provisions of this Act
sholl be rounded off to the neorest
rupee ond for this purpose, where
such omount contoins o port of o
rupee consisting of poise, then, if
such port is fifty poise or morq it sholl
be increosed to one rupee ond if such
port is less thon fifty poise it sholl be
ignored.

I 7 I . ( 1 ) Any redudion in rote of tox on
ony supply ol goods or seryices
or the benelit ol input tox credit
sholl be possed on to the
recipient by woy of commen-
surote reduction in prices.

(2) The Centol Crovemrnent rncry, on
recommendotions ol lhe
Council, by notificotion,
constitute on Authority, or
empower on exisling Authority
conslih:ted under ony low for the
time being in force, to exomine
whether input tox credits ovoiled
by ony registered person or the
redudion in the tox rote hove
octuolly resulted in o
commensurote reduction in the
price of lhe goods or services or
both supplied by him.

(3) TheAuthority referred to in sub
section (2) sholl exercise such
powers ond dischorge such
functions os moy be prescribed.

172. (l) lt ony difficutty orises in giving
etfect to ony provisions ot this
AcL he Government moy, on the
recommendotions of the
Council, by o generol or o speciol
order published in the Officiol
Gozette, moke such provisions
not inconsistent with the
provisions of this Act or tte rules

Anti-
profiteering
Meosure.

Removolof
difficulties.



4 of 2008

335

or regulotions mode tpreunder,
os moy be necessory or
expedienl for the purpose of
removing tre soid difficulty:

Provided thot no such order sholl
be mode ofter tre expiry of o period of
three yeors from the dote of
commencement of this Act.

(2) Every order mode under this
seaion sholl be loid, os soon os
moy be, ofter it is mode, before
the stote Legisloture.

1 73. (l ) fui,e os otl,€n,,,* prov*ld in this
Act, on ond from the dote ol
commencement of this Act-
(D in lhe Arunochol Prodesh

Municipol Act, 2007, in
section 129, in sub-section
(l), clouses (f)sholl be
omitted;

(2) Sore os ofienivise provided in lhis
Act, on ond from the dote of
commencement of this Act, the
provisions, under ony Stote low
outhorizing levy ond collection of
toxes by o Municipolity or o
District Council or o Regionol
Council or ony other outhority
sholl stond onnulled or rescinded
or modified, os the cose moy be,
to the extent such toxes ore the
subiect motter of Entry 52
reloting to levy of enfy tox/ocfroi,
Entry 54 reloting to levy of tox
on sole or purchose of goods,
Entry 55 reloting to levy of tox
on odvertisements ond Entry 62
reloting to levy ol tox on luxuries,
including entertoinments,
omusements, betting ond
gombling, of fre Stote List of the

Amendment
of ceftoin
Acts.



336

Seventh Schedule of the
Constitution, os omended by the
Constitution (One Hundred ond
FirstAmendment) Act,20l 6.

I 74. (l ) Sove os othenaise proided in this
Act, on ond from lhe dote of com-
mencement of this Act,

(i) he Arunochal Prodesh
Goods Tox Act 2005, ex-
cept in respect of goods
included in the Enty 54 of
the stote List of the sev-
enth Schedule to the Con-
stitution,

(ii) the ArunacholPradesh En-

W Tox A4 20 I O,(hereofter
refened to os the repealed
Acts) ore hereby repeoled.

(2) The repeal of the soid Ads ond
the omendment of the Acts
specified in seaion 173 (hereof-

ter referred to as "such omend-
ment" or hmended Act", os the
cose moy be) to the extent men-
loned in sub-sedion (l) or sec-
tion 173 sholl not-
(o) revive onything not in lorce

or existing ot the time of
such omendment or repeol;
q

(b) offect he previous operotion
of the omendedAcls or re-
peoled Acts ond orders or
onything duly done or suf-
fered thereunder; or

(c) offect ony right, privilege,
obligotion, or liobility
ocquired, occrued or

Repeal ond
soving.

3 of 2005

5of2010



337

incuned under tre omended
Acts or repeoled Acts or
orders under such repeoled
or omended Acts:

Provided thot ony tox exemption
gronted os on incentive ogoinst
investment *lrough o notificotion sholl
not continue os privilege if the soid
notificotion is rescinded on or ofter the
oppointed doy; or

(d) qfiea ony tox, surchorge,
penolty, fine, interest os ore
due or moy become due or
ony forfeiture or punishment
incurred or inflicted in
respect of ony offence or
violotion commifted ogoinst
the provisions of the
omended Acts or repeoled
Acts; or

(e) offect ony investigotion,
inquiry verifi cotion (including
scrutiny ond oudit),
ossessment proceedings,
odjudicotion ond ony other
legol proceedings or
recovery of orreors or
remedy in respect of ony
such tox, surchorge,
penolty, fine, interest, righl
privilege, obligodon, liobility,
Iorfeiture or punishment os
oforesoid, ond ony such
investigotion, inquiry,
verificotion (including
scrutiny ond oudit),
ossessment proceedings,
odiudicotion ond oher legol
proceedings or recovery of
orreo[s or remedy moy be
instituled, continued or
enforced, ond ony such tox,



3ofl982

338

surchorge, penolty, fine,
interest, lorfeiture or
punishment moy be levied
or imposed os if *rese Acts
hod nol been so omended
or repeoled; or

(f) otfect ony proceedings
including thot reloting to on
oppeol, revision, review or
reference, instituted before,
on or qfter the oppointed
doy unds te soitj onrended
Acts or repeoled Acts ond
such proceedings sholl be
continued under the soid
omended Acts or repeoled
Acts os if this Ad hod not
come into force ond tre soid
Acts hod not been
omended or repeoled.

(3) The mention of the porticulor
motters referred to in
sedion 173 ond subsection
(l ) of this section sholl not
be held to prejudice or
offect the generol oppli-
cotion of the Arunochol
Prodesh lnterpretotion ond
Generol ClousesAd, 1982
with regord to the effect of
repeol.

SCHEDULE - I

tSee section 4
ACTIVITIES TO BE TREATED AS

SUPPLY EVEN IF

MADE WITHOUT CONSIDERATION

Permonent tronsfer or disposol of
business ossets where inputtox credit
hos been ovoiled on such ossets.



$9
2. Supply ol goods or services or both

between reloted persons or between
distinct persons os specifud in seaion
25, when mode in the course or
fur reronce of business:

Provided trot gifts not exceeding
fifty thousond rupees in volue in o
linonciol yeor by on employer to on
employee sholl not be teoted os sup
ply of goods or services or both.

3. Supply of goods-

(o) by o principolto his ogenlwhere
the ogent undertokes to supply
such gcods on beholf of fie prin-

cipol; or

(b) by on ogent to his principolwhere
the ogent undertokes to receive
such goods on beholf of the prin-

cipol.

4. lmport of services by o toxoble per-
son from o reloted person orfrom ony
ol his other estoblishments outside
lndio, in the course or furtheronce of
business.

SCHEDULE.II

lSee section 1
ACTIVITIES TO BE TREATED AS

SUPPLY OF

GOODS OR SUPPLY OF SERVICES

1. Tronsfer

(o) ony tronsfer of the title in goods
is o supply of goods;

(b) ony tronsfer of right in goods or
of undivided shore in goods with-
outthe uonsler of ti{e thereof, is
o supply of services;



340

(c) ony tronsfer of title in goods un-
der on ogreement which stipu-
lotes thot property in goods sholl
poss ot o future dote upon poy-
ment of full considerotion os
ogreed, is o supply of goods.

2. Lond ond Building

(o) ony leose, tenoncy, eosement,
licence to occupy lond is o
supply of services;

(b) ony leose or letting out oI the
building including o commerciol,
industriol or residentiol complex
for business or commerce, either
wholly or portly, is o supply oi
services.

3. Treotment or process

Any treotment or process which is
opplied to onother person's goods is o

supply of services.

4. Tronsfer of business ossets

(o) where goods forming port of the
ossets of o business ore
tronsferred or disposed of by or
under the directions of the person

corrying on the business so os
no longer to form port of those
ossets, whether or not for o
considerotion, such tronsfer or
disposol is o supply of goods by
the person;

(b) where, by or under the direction
of o person corrying on o
business, goods held or used for
the purposes of the business ore
put to ony privote use or ore used,
or mode ovoiloble to ony person



311

for use, for ony purpose other
thon o purpose of the business,
whether or not for o
considerotion, the usoge or
moking ovoiloble of such goods
is o supply of services;

(c) where ony person ceoses to be
o toxoble person, ony goods
forming port of the ossets ol ony
business corried on by him sholl
be deemed to be supplied by
him in the course or furtheronce
of his business immediotely
before he ceoses to be o toxoble
person, unless-

(i) the business is tronsferred
os o going concern to
onother person; or

(ii) the business is corried on
by o personol represen-
totive who is deemed to be
o toxoble person.

5. Supply of services

Thefollowing shollbe treoted os supply

o{ service, nomely:--

(o) renting of immovoble property;

(b) construction of o complex,
building, civil structure or o port
thereof, including o complex or
building intended for sole to o
buyer, wholly or portly, except
where the entire considerotion
hos been received ofter issuonce

of completion certificote, where

required, by the competent
outhority or otter its first
occupotion, whichever is eorlier.



'12
Exphnolbn.-Forthe prrposes of fris
clouse--
(l) the expression 'competent

outhority' meons the
Government or ony outhority
outhorised to issue completion
certificote under ony low for the
time being in force ond in cose
of nonrequirement of such
certificote from such oulhority,
from ony of the following,
nomely:-

(i) on orchitea registered with
the Council of Architecture
constituted under the
Architects Act, 1972; or

(ii) o chorlered engineer regis-
tered with the lnstitution of
Engineers (lndio); or

(iii) o licensed surveyor ol the
respective locol body of the
city or town or villoge or de-
velopment or plonning ou-
thority;

(2) the expression 'construction'
includes odditions, olterotions,
replocements or remodelling of
ony existing civil structure;

(c) temporory tronsler or
permitting the use or
enjoyment of ony intelle-
ctuol property right;

(d) development, design,
progromming, customiso-
tion, odoptotion, upgrodo-
tion, enhoncement, imple.
mentotion of informotion
technology softwore;



yt
(e) ogreeirU b tle oHQaion o

refroin from on oct, or to
tolerote on oct or o
situotion, or to do on oct
ad

(0 tonsfer of the right to use
ony goods for ony purpose
(whether or not for o speci-
fied period) for cosh, de
Ierred poyment or other
wluoble considerotion.

6. Composite supfly

The following composite supplies sholl

be treoted os o suppV oI services,

nornely:-

(o) works controct os defined in
clouse (l l9) of sedion 2; ond

(b) supply, by woy of or os port oI
ony service or in ony other
monner whotsoevec of goods,

being lood or ony other orticle
for humon consumption or ony
drink (other thon olcoholic liquor

for humon consumption), where

such supply or service is for
cosh, deferred poyment or other
voluoble considerotion.

7. Supply ol Goods

The following sholl be teoted os supply
of goods, nomely:--

Supply of goods by ony unincorporoted

ossociotion or body ol persons to o
member thereof for cosh, deferred
poyment or other voluoble
consklerotion.



341

SCHEDULE - III

lSee sectionl
ACTIVITIES OR TRANSACTIONS

WHICH SHALLBETREATED

NEITHER AS A SUPPLY OF GOODS
NOR A SUPPLY OF

SERVICES

l. Services by on employee to the
employer in the course of or in relotion
to his employment.

2. Services by ony court or Tribunol
estoblished under ony low for the time
being in force.

3. (o) the functions performed by the
Members of Porlioment,
Members of Stote Legisloture,
Members ol Ponchoyots,
Members of Municipolities ond
Members of other locol
outhorities;

(b) the duties periormed by ony
person who holds ony post in
pursuonce ofthe provisions of the
Constitution in thot copocity; or

(c) the duties performed by ony
person os o Choirperson or o
Member or o Director in o body
esroblished by the Centrol
Government or o Stote Govern-
ment or locol outhority ond who
is not deemed os on employee
before the commencement oI this
clouse.

4. Services of funerol, buriol, cremotorium
or mortuory including tronsportotion of
the deceosed.



315

5. Sole of lond ond, subject to clouse (b)

of porogroph 5 of Schedule ll, sole of
building.

6. Actionoble cloims, other thon lottery
betting ond gombling.

Explonotion.-For the purposes of
porogroph 2, the term 'tourt"includes
District Court, High Court ond
Supreme C o u rt. Commissioner to
*pGovernment of orunochol Prodesh,