THE NAGALAND GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018

The Nagaland Gazette 	 15, November, 2018 

PART-V 

NOTIFICATION 
Dated Kohima? 26Oct. 2018. 

No,LAW/ACT/6-22/2018 	The Nagaland Goods and Services Tax (Amendment) Act, 2018 
(Act No. 6 of 2018) duly assented by the Hon'ble Governor of Nagaland on 03/10/2018 is 
published herewith for general information. 

Sdl- 
IMTIAKUM 

Deputy Secretary to the Govt. of Nagaland. 

An 
Act 

further to amend the Nagaland Goods and Services Tar Act, 2017. 

BE it enacted by the Legislature of Nagaland in the Sixty-ninth Year of the Republic of India as follos:- 

1. (1) This Act may be called the Nagaland Goods and Services lax (Amendment)sin wie and 

Act. 2018. 
mMecn.fIt 

(2) Save as otherwise provided, the provisions of this Act shall come into force on 

5 such date as the State Government may. by notification in the Official Gazette, appoint: 

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

f2ot7 2. In section 2 of the Nagaland Goods and Services Tax Act, 2017 (herein after referred to 
	

Arnendn-. 

to as the principal Act),— 

(a) in clause (4),— 

(1) for the words "the Appellate Authority and the Appellate 
Tribunal", the words, brackets and figures "the Appellate Authority, the 
Appellate Tribunal and the Authority referred to in sub-section (2) of section 

171" shall be substituted; 



98 	 The Nagaland Gazette, Part-V 	 15, November, 2018 

(b) in clause (16) for the words 'Central Board of Excise and Customs", 
the words, Central Board of Indirect Taxes and Customs" 
shall be 
substituted: 

in clause I?. for sub-clause (h). the flkin sub-clause shall be substituted. s 
namels':— 

l/t) activities of  race club including bs way of 1otatisaio or a license to 
book maker or activities of a licensed book maker in such club: and" 

(d) clause (18) shall be omitted; 

(e) in clause (35). for the ttcrd, braclets and letter 'clause (cr, the word, brackets 	to 
and letter "clause (b)" shall be substituted: 

(I) In clause (69) in sub--clause (0. alter the uord and figures "article 371". the 
words, figures and letter "and article 3713" shall he inserted; 

() in clause (/02). the following Explanation shall be inserted. namely:— 

lrphmazon,—Eor the removal of doubts, it is hereb clarified that the 
expression 'services" includes facilitating or arranging transactions in 
securities;' 

Amendment 	3 In section 7 of the principal Act, with effect from the 1st day of Jul). 2017,-- 
Ofcctton 7 

(a) in sub-section (1), - 

(1) in clause W. aer the words "or furtherance of business;". the word 	20 
"and" shall be inserted and shall always be deemed to have been inserted, 

(i:) in clause (c), after the words "a consideration" the word "and" shall 
be omitted and shall always be deemed to have been omitted; 

Wi) clause (d) shall be omitted and shall always be deemed to have been 
omitted; 

(b) after sub-section (1), the following sub-section shall be inserted and shall 
always be deemed to have been inserted, namely:--- 

11A) where certain activities or transactions constitute a supply in 
accordance with the provisions of sub-section (1), they shall he treated either a,,  
supply of goods or supply of services as referred to in Schedule 

(c) in sub-section (3). for the words, brackets and figures -sub- sections. (1) and 
(2)", the words, brackct, figures and letter ub.sei ions (I). ()A and (2)" shall be 
substituted 

4. In section 9 of the principal Act, for sub-section (4), the following sub-section shall 
be substituted, namely:— 	 35 

"(4) The Government ma, on the recommendations of the Council, by notification, 
specify a class of registered persons who shall, in respect of supply olspocifled 
categories of'goods or services or both received from an unregistered supplicr. pay the 
tax on reverse charge basis as the recipient of such supply of goads or ser% ices or 
both, and all the provisions Of (his Act shall apply to such recipient as if he is the 	.n 
person liable for paying the tax in relation to such supply of goods or services or 
both.". 

Ammidmcnt 	S. In section 10 of the pthipal Act,— 
of section UI 

(a) in sub-section (1)—. 

(i) for the words "in lieu of the tax pa able b him, an amount calculated at 45 
such rate", the words, brackets and figures In lieu of the tax payable by him 

Alnendmcifl 
of sc,uc,n 9 

—I— 



15, November, 2018 
	

The Nagaland Gazette, Part-V 	 99 

under sub-section (J) of section 9, an amount of tax calculated at such rale" shall 
be substituted; 

(d) in the proviso, for the words "one erore rupees", The words "one crore 
and fifty lakh rupees" shall be substituted; 

•(W) after the proviso. the following proviso shall be inserted, namely:— 

"Provided t\srihri- that a person who opts to pay tax under 
clause (a) or clause (b) or clause (c) may supply services (other than those 

referred to in clause (1) of paragraph 6 of Schedule LI). of value not 
exceeding ten per cent. of turnover in the State in the 

w 	 preceding financial year or five lakh rupees. whichever is higher.": 

(b) in sub-section 2). for clause (a), the following clause shall be substituted, 
namely:— 

(a) in clause (h), for the Explanation, the following E.xp/anauon shall be 
SUbSUP.ItCd, namely:— 

Explanation.—For the purposes of this clause, it shll be deemed that 
the registered person has recied the goods or, as the case may be, services—

(I) where the goods are delivered by the supplier to a recipient or 
an) other person on the direction of such registered person, o. hether 

acting as an agent or otherwise, before or during movement of goods, 
either by way of transfer oIdocumenrs of title to goods or otherwise: 

(ii where the services are provided by the supplier to any person 
on the direction of and on account of such registered person."; 

30 

	

	 (h.) in clause W. for the word and figures "section 4 1'. the words, figures and 
letter 'secion $l or section 4.A" shall he kubstitutcd. 

9. In section t" cf the principal Act,— 	 Amendmcnz 
ofseetioa 37 

(a) in 	'.n (.. the folowing Explonarion shall be inserted, namely:— 

'E 	 the purposes of this sub-section, the expression 

35 

	

	 'value of ecmpt Suppl>" shall not include the value of activities or 
transactions specified in Schedule Ill, except those specified in paragraph 5 
of the said Schedule.': 

(b) in ub- section (.5). for clauses (a) and (b), the following clauses shall be 
substituted. namel%­ 

40 '(a) motor vehicles for transportation of persons having approved seating 
capacity of not more than thirteen persons (including the driver, except when 
they are used for making the following taxable supplies, namely:— 

(A) further supply of such motor vehicles; or 

(8) transportation of passengers; or 

45 	 (C) imparting training on driving such motor vehicles; 

"(a) save as provided in sub-section (1), he is not engaged in the supply 
of services;". 

6. In section 12 of the principal Act. in sub-section (2). in clause (a), the words, ,mcndme,t 
brackets and figure "sub-section (!)of" shall be omitted. 	 of szmon 12 

7. In section 13 of the principal Act, in sub-section (2), the words, brackets and figure 	nendmnt 
"sub-section (2) of" occurring at both the places, shalt be omitted. 	 Of 5C1IOfl 33 

8. In section 16 of the principal Act, in sub'section (2),— 	 Amer.dment 
Of SCC(j0A 14$ 



15, Noventher, 2018 100 	 The Nagaland Gazette, Part-V 

(era) vessels and aircraft except when they are used— 

Q) for making the following taxable supplies, namely:—

(A) further supply of such vessels or aircraft; or 

ft) transportation of passengers; or 

(C) imparting training on navigating such vessels; or 

(D) imparting training on flying such aircraft: 

(ii) for transportation of goods; 

(ai) services of general insurance, servicing, repair and maintenance in so 
far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or 
clause (aa): 	 to 

Provided that the input tax credit in respect of such services shall be available— 

() where the motor vehicles, vessels or aircraft referred to in 
clause (a) or clause (aa) are used for the purposes specified therein: 

(if) where received by a taxable person engaged— 

(I) in the manufacture of such motor vehicles, vcssets or is 
aircraft; or 

(11) in the supply of general insurance services in respect of 
such motor vehicles, vessels or aircraft Insured by him: 

(b) the following supply of goods or services 07 both— 

(1) food and beverages, outdoor catering, beauty treatment, health 20 

services, cosmetic and plastic surgery, leasing, renting or hiring of motor 
vehicles, vessels or aircraft referred to in clause a1 or clause tars) t,cqit 

when used for the purposes specified therein life insurance and health 
insurance: 

Aniwdmcnt 
of sethail 20 

Aancndmcnl 
of section 22 

Provided that the input tax credit in respect of such goods or services 
or both shall be available where an inward supply of such goods or services 

or both is used by a registered person for making an outward taxable 
supply-of the same category of goods or services or both or as an dement 
of a taxable composite or mixed supply; 

(ii) membership of a club, health and fitness centre; and 	30 

(110 travel benefits extended to employees on vacation such as 
leave or home travel CUfl(CSSIOfl; 

Provided that the input tax credit in respect of such goods or services 
or both shall be available, where it is obligatory for an employer to provide 

the same to its employees under any law for the time being in force..". 

10. In section 20 of the principal Act, in the Explanation. in clause (c), for the words 
and figures "under entry 84.", the words, figures and letter "under entries U and 92A" shall 
be substituted. 

11. In section 22 of the principal Act,— 

(a) after sub-section (1). the following proviso shall be inserted, o 
namely:— 

"Provided further that the Government may, at the request of a special 
category State and on the recommendations of the Council, enhance the aggregate 

turnover referred to in the first proviso from ten lakh rupees to such amount, not 
exceeding twenty lakh rupees and subject to such conditions and limitations, as 4s 

may be so notified."; 

11 



15, November,  2018 	 The Nagaland Gazette, Part-V 	 101 

(b) in the Expignation. in clause (i1), after the word "Constitution" the words 
"except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assarn, 
Himachal Pradesh, Meghalaya. Sikkim and Unarakhand" shall be inserted.". 

12. In section 24 of the principal Act, in clause (4 after the words "commerce operator". 

th words and figures who is required to collect tax at source under section 52" shall he 

inserted. 

13. In section 25 of the principal Act,— 

(a) in sub-section (/). after the proviso and before the Explanation, the following 

proviso shall be inserted, namely:— 

"Provided further that a person having a unit, as defined in the Special 
Economic Zones Act, 2005, in a Special Economic Zone or being a Special 
Economic Zone developer shall have to apply fora separate regiStrati0fl as 
distinct from his place of business located outside the Special Economic Zone in 

the same State.": 

is 	 (b) in sub-section (2% for the proviso, the followirg proviso shall be substituted. 

namely:— 

to 
28 of 2005, 

Amendment 
of sectloll, 24 

Amendment 
of sectici' 2. 

"Provided that a person having multiple places of business in the State 
may be granted a separate registration for each such place of 
business, subject to such conditions as may be prescribed.". 

20 	14. In section 29 of the principal Act,— 	 Amendment 

(a) in the marginal heading after the word "Cancellation", the words "or 	
D(1tII 0 

suspension" shall be inserted: 

(it) in sub-section (1), after clause (c). the following proviso shall be inserted. 

namely:- 

25 

	

	
"Provided that during pendency of the proceedings relating to cancellation 

of registration filed by the registered person, the registration may be suspended 
for such period and in such manner as may be prescribed."; 

(C) in sub-section (2), after the proviso, the fiIloting proviso shall be inserted. 

namely:- 

30 

	

	 "Provided further that during pendency of the proceedings relating to 

cancellation of registration, the proper officer may suspend the registration for 
such period and in such manner as may be prescribed.". 

15. in section 34 oldie principal Act,— 	 Amefidmem 
ifeun 34 

(a) in sub-section (1).- 

33 	 (1) for the words "Where a tax invoice has", the words "Where one or more 
tax invoices have" shall be substituted; 

(1) for the words "a credit note", the words 'one or more credit notes for 

supplies made in a financial year" shall be substituted; 

(b) in sub-section (3)."' 

4!) 	 (,) for the wards "Where a tax invoice has". the wards "Where one or more 

tax invoices have" shall be substituted; 

(II) for the words "a debit note", the words "one or more debit notes for 

supplies made in a financial year" shall be substituted. 

16. In section 35 of the principal Act, in sub-section (5),the following proviso shall 

45 	 be inserted, namely:— 

"Provided that nothing contained in this sub-section shall apply to any 
department of the Central Government or a State Government or a local authority. 

whose books of account are subject to audit by the Comptroller and Auditor-General 
of India or an auditor appointed for auditing the accounts of local authorities under 

so 	any law for the time being in force.". 

Amendment 
of section 3. 



102 	 The Nagaland Gazette, Part-V 
	

15, November, 2018 

Amendment 	 17. In section 39 of the principal Act,— 
of section 39 	 - 

(a) m sub-section (F).— 

tnscnic4i of RM 
section -SM 

Pruuedine for 
rushing 
retuTu raid 
availing inpial 
tai credit, 

(1) for the words "in such form and manner as may be prescribed", the 
words "in such form, manner and within such time as may be prescribed" shall 
be substituted; 	 S 

(ii) the words "on or before the twentieth day of the month succeeding 
such calendar month or part thereof" shall be omitted: 

(ii;) the following proviso shall be inserted, namely:— 

"Provided that the Government may, on the recommendations of the 
Council, notify certain classes of registered persons who shall furnish to 
return for every quarter or part thereof, subject to such conditions and 

safeguards as may be specified therein.": 

(5) in sub-section (7), the following proviso shall be inserted, namely:— 

"Provided that the Government may. on the recommendations of the 
Council, notify certain classes of registered persons who shall pay to the 	is 
Government the tax due or part thereof as per the return on or before the last date 
on which he is required to furnish such return, subject to such conditions and 
safeguards as may be specified therein.": 

(c) 	in sub-section (9).— 

(I) for the words "in the return to be furnished for the month or quarter 20 
during which such omission or incorrect particulars are noticed", the words "in 
such form and manner as may be perscribed" shall be substituted, 

(ii) in the proviso, for the words "the end of the financial year", the words 
"the end of the financial year to which such details pertain" shall be substituted. 

18. After section 43 of the principal Act, the following section shalt be inserted. namel>:—. 	s 

"43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, 
section 37 or section 38, every registered person shall in the returns furnished under 
sub-section (1) of section 39 verify, validate, modify or delete the details of supplies 
furnished by the suppliers, 

(2) Notwithstanding anything contained in section 41, section 42 or section 43, 30 
the procedure for availing of input tax credit by the recipient and verification thereof 
shall be such as may be prescribed. 

(3) The procedure for furnishing the details of outward supplies by the supplier 
on the common portal, for the purposes of availing input tax credit by the recipient 
shall be such as may be prescribed. 	 35 

(4) The procedure for availing input tax credit in respect of outward Supplies 
not furnished under sub-section (3) shall be such as may be prescribed and such 
procedure may include the maximum amount of the input tax credit which can be so 
availed, not exceeding twenty per cent, of the input sax credit available, on the basis of 
details furnished by the suppliers under the said sub-section. 	 40 

(5) The amount of tax specified in the outward supplies for which the details 
have been furnished by the supplier under sub-section (3) shall be deemed to be the 
lax payable by him under the provisions of the Act. 

(6) The supplier and the recipient of a supply shall be jointly and severally 
liable to pay tax or to pay the input tax credit availed, as the case maybe, in relation to 45 
outward supplies for which the details have been furnished under sub-section (3) or 
sub-section (4) but return thereof has not been furnished. 



15, November, 2018 	 The Nagaland Gazette, Part-V 	 103 

S 

tO 

7) For the purposes of sub-section (6), the recover- shall be made in such 
manner as may be prescribed and such procedure may provide for non-recovery of an 
amount of tax or input tax credit wrongly availed not exceeding one thousand rupees. 

(8) The procedure, safeguards and threshold of the tax amount in relation to 

outward supplies, the details of which can be furnished under sub-section (3) by a 
registered person,— 

within six months of taking registration; 

(U) 	who has defaulted in payment of tax and where such default has 
continued for more than two months from the due date of payment of such 
defaulted amount. 

shall be such as may be prescribed.". 

19. In section 48 of the principal Act, in sub-section (2), after the word and figures 	Amendment 

"section 45", the words "and to perform such other functions" shall be inserted. 	 of section 45 

20. In section 49 of the principal Act.— 	 Amimdrrai 
of section 44 

is 	(a) in sub-section (2), for the word and figures "section 41", the words, figures 
and letter 'section 41 or section 43k" shall be substituted; 

(b) in sub-section (5).— 

(I) in clause (e). the foltosing proviso shall be inserted, namely:— 

"Provided that the input tax credit on account of State tax shall be 
utilised towards pa ment of integrated tax only where the balance of the 
input tax credit on account of central tax is not available for payment of 
integrated tax:': 

in clause (d). the follov. ng  proviso shall be inserted. namely:— 

"Proided that the input sax credit on account of Union territory tax 

25 

	

	 shalt be utilised rcards pa mcnt of integrated tax only where the balance 
of the input tax credit on account of central tax is not available for paiTlent 
of integrated tax:" 

21. After section 39 of the principal Act, the following sections shall be inserted, 

namely:- 

30 	 "49A. Notwithstanding anything contained in section 49, the input tax credit on 

account of S:a:e tax s-al, e tiised towards payment 
of integrated tax or State tax as the case may be, only 
after the input tax credit a aiabte on account of integrated tax has first been utilised 
fully tots ards such pamenc. 

35 	 49B. Norwithstar4ing an.thing contained in this Chapter and subject to the 

provisions of clatse ' an 	se if of sub-section (5) of section 49, the Goscrnmcnt 
may, on the recommendat:ns of the Council, prescribe the order and manner of 
utilisation of the input tax ;edit on account of integrated tax, central tax, State tax or 
Union scmror tax. as the case may be, towards payment of any such tax.". 

40 	22. In section 52 of the princpal Act, in sub-section (9), for the word and figures 

"section 37 1, the words and ticures "section 37 or section 39" shall be substituted. 

23. in section 54 of the principal Act.— 

(a) in sub-section (8). in clause (a), for the words "zero-rated supplies", the 

words "export" and "exports" shall respectively be substituted: 

45 	 (4) in the Explanation, in clause (2).— 

insertion of 
new 5eCt1016 

49A and 498 

tIajht,Om of 
,nDti* (** 
cccdit subjeci 
to cenain 
conditions 

Order of 
uLIil%i)Ofl of 
input ax 
Credit 

Amendment 
ofscction 52 

Amendment 
of section 54. 



104 	 The Nagaland Gazette, Part-V 	 15, November, 2018 

(1) in sub-clause (c), in item (1), after the words 'foreign exchange", the 

words "or in Indian rupees wherever permitted by the Reserve Bank of India" 

shall be inserted; 

(ii) for sub-clause (e), the following sub-clause shall be substituted, 

namely:— 	 . 

"fr) In the case of refund of unutilised input tax credit under 

clause (ii) of the first proviso to sub-section (3), the due date for 

furnishing of return under section 39 for the petted In which such claim 

for refund arises:". 

24. In section 79 of the principal Act, after sub-section (4). the following 
	 it 

Explanation shall be inserted., namely:— 

'Explanaskur.—FOr the purposes of this section, the word person shall 

include "distinct persons" as referred to in sub-section (4) or. as the case may be. 

sub-section (5) of section 25.' 

25. In section 107 of the principal Ac;, in sub-section (6), 
in clause (b), after the IS 

words "arising from the said order,", the words "subject to a maximum of twenty-live 

crore rupees," shall be inserted- 

26- In section 112 of the principal Act, in sub-section (8), in clause (b), after the 

words "arising from the said order," the words "subject to a maximum of fifty crore 

rupees," shall be inserted. 

27. In section 129 of the principal Act, in sub-section (6), for the words "seven 

days", the words "fourteen days" shall be substituted. 

Mtendmes 
of sec-Sun 79. 

Amendment of 
Section 107. 

Amendment of 
section 112. 

,s.rnendmcnl of 
scetion 129 

20 

',ncndmrnt 
of 4thOI 

143 

28. In section 143 of the principal Act, in sub-section (1). in clause (b), after the 
proviso, the following proviso shall be inserted, namely:— 

'Provided further that the period ofnc year and three eats may, on sufficient Cause 

herng shown, be extended by the Comnussmner for a further period not exceeding 

one year and two years respectively.". 

29. In Schedule I of the principal Act., in paragroph 4, for the words "taxable 	Amesdrnmz 

person". the word "person" shall be substituted. 	 of Schedule I 

30. In Schedule II of the principal Act, in the heading, after the word 'ACTIVITIES", 	Mnd 	
of 

the words -OR TRANSACTIONS" shalt be inserted and shall always be deemed to have 	
Schedule 11 

to 	been inserted with effect from tlsc 1st day of July, 2037. 

31. In Schedule III of the principal Act. - 

	

	 Anrnrncm Tf 
Schedule III 

52of 1962 

1$ 

"0 

(t) after paragraph 6, the following paragraphs shall be inserted., namely:— 

Supply of goods from a place in the non-taxable territory to another 
place in the nontaxablc territory without such goods entering into India. 

a) Supply of warehoused goods to any person bcf&c clearance for 

home consamption; 

'l Supply of good- in the consignee to any other person, by 

endorsement of documents of title to the goods, after the goods have been 

dispatched from the port of origin located outside India but before clearance 

ttsme cosurnntion.'. 

tha Lxa. as,,ia shall be nLn1beed as Eplaraaiäon I and sftcr 

Frp1ww2icn I as so numbered, the following £xplanafion shall be 

inscfld, namely 

£xp(asiauo.i 2.—For the purposes of paragraph & the expression 
2. 	 ss-arehoused good' shall have the same meaning as assigned to it in 

the Customs Act. 1962.