THE NAGALAND GOODS AND SERVICES TAX (AMENDMENT) ACT, 2019

 

The Nagaland Gazette, 

PART-V  

NOTIFICATION  

13,March, 2020 

  

     

Dated Kohlma.the 134h March, 2920. 

r'.LAWIACT134912020:: The Nagaland Goods and Services Tax (Amendment) Act, 2019 
(Act No.3 of 2020) duty assented by the Hon'ble Governor of Nagaland on 12.03.2020 is published 
herewith for general information. 

Sd- 
IMTIAKUM 

Deputy Secretary to the Govt. of Nagaland 

An 
Act 

Further to amend the Nagaland Goods and Services Tax Act.. 2017 (Act No. 4 of 2017) 

Be it enacted by the Legislature of Nagaland in the Seventy-fix year of the Republic of India as 
follows- 

Short title and 	1. (1) This Act may be called the Nagaland Goods and Services Tax 
commencement 	 (Amendment) Act, 2019. 

Save as otherwise provided, the provisions of this Act shall come into 

force on such date as the Nagaland 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. 

Amendment of 2. (1) In Section 2 of the Nagaland Goods and Services Tax Act,. 2017 
section 2 	 (hereinafter referred as Nagatand Goods and Services Tax Act). in 

,,clause (4), after the words "the Appellate Authority for Advance 

Ruling", the words "the National .AppeUatc. Authority for Advance 

•Ruling-, shall be Inserted. 

Amendment of 3. (1) In section 10 of the Nagaland Goods and Services Tax Acts— 
section 10 	

(a) 	in sub-section (1), after the second proviso, the following 

Explanation.sb3Ii be inserted, namely:— 

"Explanation.— For the purposes of second proviso, the value of 

exempt supply of services provided by way of extending deposits., 

loans or advances in so far as the consideration is represented by way 

of interest or discount shall not be taken into account for determining 

thc:valuc of tunioverin the State"; 



97 	 The Nagaland Gazette, Part-V 	13,March, 2020 

	

(b) 	in sub-section (2)— 

(i) in clause (d), the word "and" occurring at the end shall be 

omitted; 

(ii) in clause (e), for the word "Council:', the words "Council; 

and" shall be substituted: 

(iii) after clause (e), the tIIowing clauso shall be inserted, 

namely— ,1(f) 

 he is neither a casual taxable person nor a non-resident taxable 
person:"; 

	

(c) 	after sub-section (2), the following sub-section shall be 
inserted, namely-.— 

"'(2A) Notwithstanding anything to the contrary contained in this 

Act., but subject to the provisions of sub-sections (3) and (4) of  

section 9, a registered person. not eligible to opt to pay tax under 

sub-section (1) and sub-section (2), whose aggregate turnover in 

the preceding financial year did not exceed fifty lakh rupees, may 

opt to pay. in lieu of the tax payable by him under sub-section (1) 

of section 9, an amount of tax calculated at suh rile- as may be 

prescribed, but not exceeding three per cent of the turnover in the 

State,: if lie not— 

(a) engaged in making any supply of goods or services which 

are not leviable to tax under this Act: 

(b) engaged in making any inter-State outward supplies of 

goods or services; 

(c) engaged in making any supply of goods or services 

through an electronic commerce operator who is required o 

collect tax at-source undcr section 52; 



13, March, 2020 	 The Nagaland Gazette, Part- V 	 98 

(d) a manufacturer of such goods or supplier of such services as 

may be notified by the Government on the recommendations of the 

Council; and 

(e) a casual taxable person or a non-resident taxable person: 

Provided that where more than one registered person are having the 

same Permanent Account Number issued under the Income-tax Act, 

1961, the registered person shall not be eligible to opt for the scheme 

under this sub-section unless all such registered persons opt to pay tax 

under this sub- section."; 

(d) in sub-section (3), after the words, brackets and figure under 
sub-section (1)" at both the places where they occur, the words, 
brackets, figure and letter 'or sub-section (2A), as the case may be," 
shall be inserted. 

(e) in sub-section (4), after the words, brackets and figure "of sub-
section (1)", the words, brackets, figure and letter "or, as the case may 
be, sub-section (2i\)" shall be inserted. 

(f) in sub-section (5), after the words, brackets and figure "under 
sub-section (1)", the words, brackets, figure and letter 'or sub-section 

(2A), as the case may be," shall be inserted. 

(g) after sub-section (5), the following Explanations shall be 

inserted, namely:— 	 - 
"Explanation 1.— For the purposes of computing aggregate turnover of 

a person for determining his eligibility to pay tax under this section, 

the expression "aggregate turnover" shall include the value of supplies 

made by such person from the 1st day of April of a financial year upto 

the date when he becomes liable for registration under this Act,, but 

shall not include the value of exempt supply of services provided by 

way of extending deposits, loans or advances in so far as the 

consideration is represented by way of interest or discount. 

Explanation 2.— For the purposes of determining the tax payable by a 

person under this section, the expression "turnover in State" shall not 

include the value of following suppliesflanely:_ 



Amendment.Of 4. 
section 22 

The Nagaland Gazette, Part-V 	 13,  March, 2020 

(I) 	supplies from the first day of April of a financial year upto the 

date when such person becomes liable for registration under this Act 

and 

(ii) 	exempt supply of services provided by way of extending 

deposits, loans or advances in so far as the consideration is represented 

by way of interest or discount'. 

In section 22 of the Nagaland Goods and Services Tax Act, in sub-

section (1), after the second proviso, the following shall be insetted, 

namely:— 

'Provided also that the Government may, on the 

recommendations of the Council, enhance the aggregate turnover from 

twenty lakh rupees to such amount not exceeding forty lakh rupees in 

case of supplier who is engaged exclusively in the supply of goods, 

subject to such conditions and limitations, as may be notified. 

Explanation.—For the purposes of this sub-section, a person 

sball be considered to be engaged exclusively in the supply of goods 

even if he is engaged in exempt supply of services provided by way of 

extending deposits, loans or advances in so far as the consideration is 

represented by way of interest or discount.'. 

99 

Amcndncnt of 5. 
section 25 

In section 25 of the Nagaland Goods and Services Tax Act, after sub-

section (6), the following sub-sections shall be inserted, namely:—

"(GA) Every registered person sbll undergo authentication, or furnish 

proof of possession of Aacthaar number, in such form and manner and 

within such time as may be prescribed: 

Provided that if an Aadhaar number is not assigned to the registered 

person, such person shall be offered alternate and viable means of 

identification in such manner as Government may, on the 

recommendations of the Council, prescribe: 

Provided further that in case of failure to undergo authentication or 

furnish proof of possession of Aadhaar number or furnish alternate and 

viable means of identification, registration allotted to such person shall 

be deemed to be invalid and the other provisions of this Act shall apply 



13, March, 2020 
	

The Nagaland Gazette, Part- V 	100 

as if such person does not have a registration, 

(6B) On and from the thte of notification, every individual shall, in 

order to be eligible for grant of registration, undergo authentication, or 

furnish proof of possession of Aadhaar number, in such manner as the 

Government may, on the recommendations of the Council, specify in 

the said notification: 

Provided that if an Aadhaar number is not assigned to an individual, 

such individual shall be offered alternatc and viable means of 

identification in such manner as the Government may, on the 

recommendations of the Council, specify in the said notification. 

(6C) On and from the date of notification, every person, other than an 

individual, shall, in order to be eligible for grant of registration 

undergo authentication, or furnish proof of possession of Aadhaar 

number of the Karta, Managing Director, whole time Director, such 

number of partners, Members of Managing Committee of Association, 

Board of Trustees, authorised representative, authorized signatory and 

such other class of persons, in such manner, as the Government may, 

an the recommendation of the Council, specify in the said notification: 

Provided that where such person or class of persons have not 

been assigned the Aadhaar Number)  such person or class of persons 

shall be offered alternate and viable means of identification in such 

manner as the Government may, on the recommendations of the 

Council, specify in the said notification. 

(613) The provisions of sub-section (6A) or sub-section (613) or sub-

section (6C) shall not apply to such person or class of persons, or pail 

of the State, as the Government may, on the recommendations of the 

Council, specify by notification. 

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

"'Aadhaar number" shall have the same meaning, as assigned to it in 

clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial 

and Other Subsidies, Benefits and Services) Act, 2o 16."'. 



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Insertion of new 
section 3 1 A 
Facilky of 
digital payment 
to recipient 

6. 	After section 31 of the Nagaland Goods and Services Tax Act; the 

following section shall be inserted, namely— 

"3 IA. IA. The Government may, on the recornmcndations of the Council, 

prescribe a class of registered persons who shall provide prescribed 

modes of electronic payment to the recipient of supply of goods or 

services or both made by him and give option to such recipient to make 

payment accordingly, in such manner and subject to such conditions 

and restrictions, as may be prescribed.". 

Amendment of 7. 
section 39 

In section 39 of the Nagaland Goods and Services Tax Act,— 

(a) for sub-sections (1) and (2), the folloving sub-sections shall be 

substituted, namely:— 

"(I) Everyregistered person, other than an Input Service Distributor 

or a non-resident taxable person or a person paying tax under the 

provisions of section 10 or section 51 or section 52 shall, for every 

calendar month or part thereof, furnish, a return, electronically, of 

inward and outward supplies of goods or services or both, input tax 

credit availed, tax payable, tax paid and such other particulars, in such 

form and manner, and within such time as may be prescribed: 

Provided that the Government may, on the recommendations of the 

Council, notify certain class of registered persons who shall furnish a 

return for every quarter or part thereof, subject to such conditions and 

restrictions as may be specified therein. 

(2) 	A registered person paying tax under the provisions of section 

IC), shall, for each financial year or part thereof, furnish a return, 

elcctromcal]y, of turnover in the State, inward supplies of goods or 

services or both, tax payable, tax paid and such other particulars in 

such form and manner, and wt thin such time, as may be prescribed" 

(b) for sub-section (71, the follosving sub-section shall be 

substituted, namely:— 



13, March, 2020 	 The Nagaland Gazette, Part-  V 
	

102 

"(7) Every registered person who is required to furnish a return under 

sub-section (1), other than the person referred to in the proviso thereto, 

or sub-section (3) or sub-section (5), shall pay to the Government the 

:x due as per stch return not later than the last date on which he is 

required to furnish such return: 

Provided that every registered person furnishing return tinder 

the proviso tosub-section (I) shall pay to the Government, the tax due 

taking into account inward and outward supplies of goods or services 

or both, input tax credit availed, tax payable and such other particulars 

during a month, in such form and manner, and within such time, as 

may be prescribed: 

Provided further that every registered person furnishing return 

under sub-section (2) shall pay to the Government the tax due taking 

into account turnover in the State, inward supplies of goods or services 

or both, tax payable, and such other particulars during a quarter, in 

such form and manner, and within such time, as may be prescribed.". 

Amendment of S. 
section 44 

Amendment of 9. 
Section 49 

In section 44 of the Nagaland Goods and Services Tax Act,, in sub-

section (1), the following provisos shall be inserted namely:— 

"Provided that the Commissioner may, on the recommendations 

of the Council and for reasons to be recorded in writing, by 

noLiIcation, extend the time limit for furnishing the annual return for 

such class of registered persons as may be specified therein: 

Provided farther that any extension of time limit notified by the 

Commissioner of Central Tax shall be deemed to be notified by the 

Corrtmjssjoner.'% 

In section 49 of the Nagaland Goods and Services Tax Act, after sub-

section (9), the following sub- sections shall be inserted, namely;— 

"(10) A registered person may, on the common portal, transfer any 

amount of tax, interest, penalty, fee or any other amount available in 

the electronic cash ledger under this Act, to the electronic cash ledger 

for Integrated tax, Central tax, State Tax or cess, in such form and 

manner and subject to such conditions and restrictions as may be 



103 	 The Nagaland Gazette, Part-V 	 13, March, 2020 

prescribed and such transfer shall be deemed to be a refund from the 

electronic cash ledger under this Act. 

Amendment of 10. 
section 50 

Amendment of 11. 
section 52 

(11) Where any amount has been transferred to the electronic cash 

Ledger under this Act, the same shall be deemed to be deposited in the 

said ledger as provided in sub-section (1).". 

In section 50 of the Nagaland Goods and Services Tax Act, in sub-

section (1), the following proviso shall be inserted, namely:— 

'Provided that the interest on tax payable in respect of supplies made 

during a lax period and declared in the return for the said period 

furnished after the due date in accordance with the provisions of 

section 39, except where such return is furnished after commencement 

of any proceedingsurtdcr section 73 or section 74 in respect of the said 

period, shall be levied on that portion of the lax that is paid by debiting 

the electronic cash ledger.". 

In section 52 olthe Nagaland Goods and Services Tax Act.— 

(a) in sub-section (4), the following provisos shall be inserted. 

namely:- 
"Provided that the Commissioner may, for reasons to be 

recorded in writing, by notification, extend the time limit for 

furnishing the statement for such class of registered persons as maybe 

specified therein: 
Provided further that any extension of time limit notified by the 

Commissioner of Central tax shall be deemed to be notified by the 

Commissioner."; 

(b) 	in sub-section (5), the following provisos shall be inserted, 

namely:- 
'Provided that the Commissioner may, on the 

recommendations of the Council and for reasons to be recorded in 

writing, by notification, extend the time limit for firnishing the annual 

statement for such class of registered persons as may be specified 

therein 



13, March, 2020 	The Nagaland Gazette, Part- V 	104 

Provided ftirther that any extension of thne limit  notified by the 

Commissioner of State tax or the Commissioner of Union territory tax 

shall be deemed to be notified by the Commissioner.". 

IrLsertion of new 12. 	
After section 53 of the Nagaland Goods and Services Tax Act, the 

section 53A following section shall be inserted, namely.— 
Transfer of 
certain amount 	

'53A. Where any amount has been transferred from the electronic cash 

ledger under this Act to the electronic cash ledger under the Central 

Goods and Services Tax Act or under the Integrated Goods and 

Services Tax Act and the Goods and Services Tax (Compensation to 

Stales) Act, the Government shall, transfer to the Central tax account 

or the Integrated tax account or cess account, an amount equal to the 

amount transferred from the electronic cash ledgers in such manner and 

vithin such time as may be prescribed.". 

Amendment of 13. 
	In section 54 of the Nagaland Goods and Services Tax Act, after sub- 

section 54 	 section (8), the following sub-section shall be inserted, namely;- 

18A) The Central Government may disburse the refund of the State 

tax in such manner as may be prescribed.". 

Amendment cf 14. 	In section 95 of the Nagaland Goods and Services Tax Act,— 

section 95 

Insertion of new 15. 

section 101A, 
IO1B&IOIC 

(1) 	in clause (a),— 

(a) after the words "Appellate Authority", the words "or the 

National Appellate Authority" shall be inserted; 

(b) after the words and figures "of section lO0" the words, figures 

and letter "or of section IOIC of the Central Goods and Services Tax 

Act" shall be inserted; 

(ii) 	after clause (e), the  following clause shall be inserted, namely:- 

"(f) "National Appellate Authority" means the National Appellate 

Authority for Advance Ruling referred to in section 101 A." 

After section 101 of the Nagaland Goods and Services Tax Act, the 

following sections shall be inserted, namely:— 



105 	 The Nagaland Gazette,_Part-V 	13,  March, 2020 

Constitution of 
National 
Appellate 
Authority for 
Advance Ruling 

"101A. (1) The  Central Government shall, on the recommendations of 

the Council by notification, constitute, with effect from such date as 

may be specified therein, an Authority known as the National 

Appellate Authority for Advance Ruling for hearing appeals made 

under section 1018. 

(2) 	The Constitution of the National Appellate Authority and the 

qualification, appointment, salary and allowances, tenDs of office, 

resignation, removal with respect to the President and Members of the 

National Appellate Authority shall be governed as per sub section (2), 

sub section (3), sub section (4), sub section (5)1 sub section (6). sub 

section (7), sub section (8), sub section (9), sub section (10), sub 

section (111 sub ScCtion (12), sub section (13) and sub section (14) of 

Section 101 A of the Central Goods and Services Tax Act - 

Amendment of 16. 
section 102 

In section 102 of the Nagaland Goods and Services Tax Act, in the 

opening portion,— 

(a) after the words "Appellate Authority"., at both the places where 

they occur, the words "or the National Appellate Authority" shall be 

inserted; 

(b) after the words and figures "or section 101", the words, figures 

and letter "or section I01C, respectively" shall be inserted; 

(c) for the words "or the appellant", the words ,appellant, the 

Authority or the Appellate Authoritf shall be substituted. 

Amendment of 17. 	In section 103 of the Nagaland Goods and Services Tax Act,— 

section 1.03 	 (i) 	after sub-section (1) the following sub-section shall be 

inserted, namely:— 

"(IA) The advance ruling pronounced by the National Appellate 

Authority under this Chapter shall be binding on— 

(a) 	the applicants, being distinct persons, who had sought the 

ruling under sub-section (1) of section IOIB of the Central Goods and 

Services Tax Act and all registered persons having the same  



The Nagaland Gazette, Part- V 	 106 

Permanent Account Number issued under the Income-tax Act, 1961; 

13, Marc!:, 2020 

(b) 	the concerned officers and the jurisdictional officers in respect 

of the applicants referred to in clause (a) and the registered persons 

having the same Permanent Account Number issued under the Income-

tax Act, 1961."; 

(ii) 	in sub-section (2), after the words, brackeis and figure "in sub- 

section (1)", the words, brackets, figure and letter "and sub-section 

(IA)" shall be inserted. 

Amendment of 18. 
section 104 

Amendment of 19. 
section 105 

In section 104 of the Nagalánd Goods and Services Tax AeL;. in sub- 

section (I),— 

(a) after the words "Authority or the Appellate Authority' the 

words "or the National Appellate Authority" shall be inserted; 

(b) after the words and figures "of section 101", the words, figures 

and letter "or under section 1OIC of the Central Goods and Services 

Tax Act" shall be inserted. 

tn section 105 of the Nagaland Goods and Services Tax Act,— 

(a) 	for the marginal beading, the following marginal heading shall 

be substituted, namely:— "Powers of Authority, Appellate Authority 

and National Appellate Authority"; 

(h) 	in. sub-section (1), after the words 'Appellate Authority"', the 

words "or the National Appellate Authority"sbaU..be inserted; 

(c) in sub-section (2), after the v:ords "Appellate Authority", at 

both the places where they occur., the words "or the Na*inal Appellate 

Authority" shall be inserted. 

Amendment of 20 
section 106 

In section 106 of the Nagaland Goods and Services Tax Act,— 

(a) for the marginal heading, the following marginal heading shalt 

be substituted, namely:— "Procedure of Authority, Appellate 

Authority and National Appellate Authority"; 

(b) after the words "Appellate Authority", the words "or the 

National Appellate Authority" shall be inserted. 



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The Nagaland Gazette, Part-V 	 13,  morek 2020 

Amendment of 21. 	In secon 171 of the Nagaland Goods and Services Tax Act, after sub
,  

secon 171 I 	 p 
section (30e folloydng  Amendment shall be rnseed, naine1y:— 

'1(3A) Where the Authoty referred to in SU1J$eCtiQII (2) after holding 

examination as required under the said sub.section comes to the 

concltion that any registered person has profitecred under sub 

section (1), such person shall be liable to pay pen1ty equivalent to ten 

per cent of thC aiount so profiteered: 

Provided that no penalty shall be kviable if ie profiteered am out is 

deposited within thirty days of the date oi pasing of the order by the 

Won'ty.  

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

profiteered" shall mean the amount determined  on account of not 

passing the benefit of reiJucon in rate of tax on supply of goeds or 

services or both or the benefit of input tax credit to the recipient by 

way of commensurate reduction in the pace of the goods or seriees or 

bOth11!