The SIKKIM GOODS AND SERVICE TAX ACT,2017

SIKKIM GAZETTE EXTRAORDINARY PUBLISHED BY AUTHORITY lednesday 14thJune, 2017 No. 220 GOVERNMENT OF SIKKIM LAW DEPARTMENT GANGTOK th Dated: 5 June, 2017 NOTIFICATION asse by the Sikkim Legislative Assembly and having received assent of ~y, 2017 is hereby published for general information :- E SIKKlM GOODS AND SERVICES TAX ACT, 2017 (ACT NO.9 OF 2017) AN ACT . ion for levy and collection of tax on intra-State supply of goods or by the State of Sikkim and the matters connected therewith or incidental y Legislature of Sikkim in the Sixty-eighth Year of the Republic of India CHAPTER I PRELIMINARY -- ~ e called the Sikkim Goods and Services Tax Act,2017. Short title, extent and e ole of the Sikkim State commencement. e i 0 force on such date as the State Government '0 in the Official Gazette, appoint: eren dates may be appointed for different provisions of in any such provision to the commencement of this Act eference to the coming into force of that provision. 2. In this Act, unless the context otherwise requires,- Definitions. 4 of 1882 (1) "actionable claim" shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882; (2) "address of delivery" means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services -or both; (3) "address on record" means the address of the recipient as available in the records of the supplier; (4) "adjudicating authority" means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Commissioner, Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal; (5) "agent" means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auc- tioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another; (6) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; (7) "agriculturist" means an individual or a Hindu Undivided Family who undertakes cultivation of land- (a) by own labour, or (b) by the labour of family, or (c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family; (8) "Appellate Authority" means an authority appointed or authorised to hear appeals as referred to in section 107; (9) "Appellate Tribunal" means the Goods and Services Tax Appellate Tribunal referred to in section 109; (10) "appointed day" means the date on which the provisions of this Act shall come into force; -2- (11) "assessment" means determination of tax liability under this Act and includes self-assessment, re- assessment, provisional assessment, summary assessment and best judgement assessment; 43 of 1961. (12) "associated enterprises" shall have the same meaning as assigned to it in 'section 92A of the Income-tax Act, 1961; " (13) "audit" means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder; (14) "authorised bank" shall mean a bank or a branch of abank authorised by the Central Government to collect the tax or any other amount payable under this Act; (15) "authorised representative" means the representative as referred to under section 116; 54 of 1963. (16) "Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963; (17) "business" includes- (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) anyactivity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) ofthe facilities or benefits to its members; -3- (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h} services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; (18) "business vertical" means a distinguishable component of an enterprise that isengaged inthe supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals. Explanation.- Forthe purposes ofthis clause, factors that should be considered in determining whether goods or services are related include- (a) the nature of the goods or services; (b) the nature of the production processes; (c) the type or class of customers for the goods or services; (d) the methods used to distribute the goods or supply of services; and (e) the nature of regulatory environment (wherever applicable),including banking, insurance or public utilities; (19) "capital goods" means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used inthe course or furtherance of business; (20) "casual taxable person" means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or inany other capacity, inthe taxable territory where he has no fixed place of business; (21) "central tax" means the central goods and services tax levied under section 90f the Central Goods and Services Tax Act; -4- (22) "cess" shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to States) Act; 38 of 1949. (23) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2"of the Chartered Accountants Act, 1949; (24) "Commissioner" means the Commissioner of State tax appointed under section 3 and includes the Principal Commissioner or Chief Commissioner of State tax appointed under Section 3; (25) "Commissioner in the Board" means the Commissioner referred to in section 168 ofthe Central Goods and Services Tax Act; (26) "common portal" means the common goods and services tax electronic portal referred to in section 146; (27) "common working days" shall mean such days in succession which are not declared as gazetted holidays by the Central Government or the Government of Sikkim; (28) "company.. secretary" means a company secretary as 56 of 1980. defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980; (29) "competent authority" means such authority as may be notified by the Government; (30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied inconjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. (31) "consideration" in relation to the supply of goods or services or both includes- (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall . not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the -5- supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect ofthe supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply; (32) "continuous supply of goods" means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify; (33) "continuous supply of services" means a supply of services which isprovided, oragreed to be provided, continuously , or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify; (34) "conveyance" includes avessel, an aircraft and avehicle; (35) "cost accountant" means a cost accountant as defined inclause (c)of sub-section (1) ofsection 2 ofthe Cost and Works 23 of 1959. Accountants Act, 1959; (36) "Council" means the Goods and Services Tax Council established under article 279A of the Constitution; (37) ,"credit note" means a document issued by a registered person under sub-section (1) of section 34; (38) "debit note" means a document issued by a registered person under sub-section (3) of section 34; (39) ,"deemed exports" means such supplies of goods as may be notified under section 147; (40) "designated authority" means such authority as may be notified by the Commissioner; ,(41) "document" includes written or printed record of any sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000; -6- (42) "drawback" in relation to any goods manufactured in India and exported, means the rebate of duty, taxor cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods; (43) "electronic cash ledger" means the electronic cash ledger referred to in sub-section (1) of section 49; (44) "electronic commerce" means the supply of goods or services or both, including digital products over digital or electronic network; (45) "electronic commerce operator" means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce; (46) "electronic credit ledger" means the electronic credit ledger referred to in sub-section (2) of section 49; (47) "exempt supply" means supply of any goods or services or both which attractsnil rate oftax orwhich may bewholly exempt from tax under section 11, or under section 6 of the Integrated Goods and ServicesTax Act, and includes non-taxable supply; (48) "existing law" means any law, notification, order, rule or regulation relating to levy and collection of duty or tax on goods or services or both passed or made before the commencement of this Act by the Legislature or any Authority or person having the power to make such law, notification, order, rule or regulation; (49) "family" means,- (i) the spouse and children of the person, and (ii) the parents, grand-parents, brothers and sisters of the person ifthey are wholly or mainly dependent on the said person; (50) "fixed establishment" means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs; (51) "Fund" means the Consumer Welfar~ Fund established under section 57; (52) "goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land ich are agreed to be severed before supply or under acontract supply; '53) "Government" means the Government of Sikkim; 5L) "Goods and Services Tax (Compensation to States) Act" •...6.•G s e Goods a d Services Tax (Compensation to States) .2 -/- (55) "goods and services tax practitioner" means any person who has been approved under section 48to act as such practitioner; (56) "India" means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other · 80 of 1976 Maritime Zones Act, 1976, and the air space above its territory and territorial waters; (57) "Integrated Goods and Services Tax Act" means the Integrated Goods and Services Tax Act, 2017; (58) "integrated tax" means the integrated goods and services tax levied under the Integrated Goods and Services Tax Act; (59) "input" means any goods other than capital goods used or intended to be used by a supplier inthe course or furtherance of business; (60) "input service" means any service used or intended to be used by a supplier in the course or furtherance of business; (61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office; (62) "input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes- (a) the integrated goods and services tax charged on import of goods; (b) the tax payable under the provisions of sub-sections (3) and (4) of section 9; (c) the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act; or (d) the tax payable under the provisions of sub- sections (3) and (4) of section 9 of the Central Goods and Services Tax Act, but does not include the tax paid under the composition levy; (63) "input tax credit" means the credit of input tax; -8- (64) "intra-State supply of goods" shall have he sa e ea 9 as assigned to it in section 8 of the Integra ed Goods a .Se . es Tax Act; (65) "intra-State supply of services" shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act; (66) "invoice" or "tax invoice" means the tax invoice referred to in section 31; (67) "inward supply" in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means, with or without consideration; (68) "job work" means any treatment or process undertaken by a person on goods belonging to another registered person and the expression "job worker" shall be construed accordingly; (69) "local authority" means- (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (b) a "Municipality" as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the 41 of 2006. Cantonments Act, 2006; (e) a Regional Councilor a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; (70) "location of the recipient of services" means,- (a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business; (b) where asupply is received at aplace other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; (c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and -9- (d) in absence of such places, the location of the usual place of residence of the recipient; (71) "location of the supplier of services" means,- (a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; (b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; (c) where a supply is made from more than one establishment, whether the place ofbusiness orfixed establishment, the location ofthe establishment most directly concerned with the provisions of the supply; and (d) in absence of such places, the location of the usual place of residence of the supplier; (72) "manufacture" means processing of raw material or inputs inany manner that results inemergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly; (73) "market value" shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and atthe same commercial level where the recipient and the supplier are not related; (74) "mixed supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by ataxable person for asingle price where such supply does not constitute a composite supply. Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks .and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; (75) "money" means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognized by the. Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value; (76) "motor vehicle" shall have the same meaning as assigned 59 of 1988. to it in clause (28) of section 2 of the Motor Vehicles Act, 1988; -10- (77) "non-resident taxable person" means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India; (7S) "non-taxable supply" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act; (79) "non-taxable territory" means the territory which isoutside the taxable territory; (SO) "notification" means a notification published inthe Official Gazette and the expressions 'notify' and 'notified' shall be construed accordingly; (S1) "other territory" includes territories other than those comprising in a State and those referred to in sub-clauses (a) to (e) of clause (114); (S2) "output tax" in relation to ataxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis; (S3) "outward supply" in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person inthe course or furtherance of business; (S4) "person" includes- (a) an individual; (b) a Hindu Undivided Family; (c) a company; (d) a firm; (e) a Limited Liability Partnership; (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (g) any corporation established by or under any Central 1Sof2013. Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013; (h) any body corporate incorporated by or under the laws of a country outside India; -11- (i) aco-operative society registered under any law relating to co-operative societies; U) a local authority; (k) Central Government or a State Government; 21 of 1860. (I) society as defined under the Societies Registration Act, 1860; (rn) trust; and (n) every artificial juridical person, not falling within any of the above; (85) "place of business" includes- (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where ataxable person stores his goods, supplies or receives goods or services or both; or (b) a place where a taxable person maintains his books of account; or (c) a place where ataxable person is engaged in business through an agent, by whatever name called; (86) "place of supply" means the place of supply as referred to inChapter Vofthe Integrated Goods and Services Tax Act; (87) "prescribed" means prescribed by rules made under this Act on the recommendations of the Council; (88) "principal" means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both; (89) "principal place of business" means the place of business specified as the principal place of business inthe certificate of registration; (90) "principal supply" means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary; (91) "proper officer" in relation to any function to be performed under this Act, means the Commissioner or the officer of the State tax who is assigned that function by the Commissioner; (92) "quarter" shall mean a period comprising three consecutive calendar months, ending on the last day of March, June, September and December of a calendar year; (93) "recipient" of supply of goods or services or both, means- (a)where aconsideration ispayable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the pers.5:>nto whom the goods are delivered or -12- made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient ofthe supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied; (94) "registered person" means a person who is registered under section 25 but does not include a person having a Unique Identity Number. (95) "regulations" means the regulations made by the Government under this Act on the recommendations of the Council; (96) "removal" in relation to goods, means- (a) despatch ofthe goods for delivery bythe supplier thereof or by any other person acting on behalf of such supplier; or (b) collection of the goods by the recipient thereof or by any other person acting on behalf of such recipient; (97) "return" means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder; (98) "reverse charge" means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub- section (3) or sub-section (4) of section 9,or under sub- section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act; (99) "Revisional Authority" means an authority appointed or authorised for revision of decision or orders as referred to in section 108; (100) "Schedule" means a Schedule appended to this Act; ~2 of 1956. (101) "securities" shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956; (102) "services" means anything other than goods, money and securities but includes activities relating tothe use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; (103) "State" means the State of Sikkim; (104) "State tax" means the tax levied under this Act; -13- (105) "supplier" in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; (106) ''taxperiod" means the period for which the return isrequired to be furnished; (107) "taxable person" means aperson who is registered or liable to be registered under section 22 or section 24; (108) "taxable supply" means a supply of goods or services or both which is leviable to tax under this Act; (109) ''taxable territory" means the territory to which the provisions of this Act apply; (110) "telecommunication service" means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means; (111) "the Central Goods and Services Tax Act" means the Central Goods and Services Tax Act, 2017; (112) "turnover in State" or "turnover in Union territory" means the aggregate value of all taxable supplies (excluding the value ofinward supplies on which tax ispayable byaperson on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess; (113) "usual place of residence" means- (a) in case of an individual, the place where he ordinarily resides; (b) in other cases, the place where the person is incorporated or otherwise legally constituted; (114) "Union territory" means the territory of,- (a) the Andaman and Nicobar Islands; (b) Lakshadweep; (c) Dadra and Nagar Haveli; (d) Daman and Diu; (e) Chandigarh; and (f) other territory; Explanation.- For the purposes of this Act, each of the territories specified in sub-clauses (a) to (f) shall be considered to be a separate Union territory. -14- (115) "Union territory tax" means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act; (116) "Union Territory Goods and Services Tax Act" means the Union Territory Goods and Services Tax Act, 2017; (117) "valid return" means a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid infull; (118) "voucher" means an instrument where there isan obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument; (119) "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; (120) words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, the Central Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the same meanings as assigned to them in those Acts. CHAPTER II ADMINISTRATION 3. The Government shall, by notification, appoint the following Officers under classes of officers for the purposes of this Act, namely:- this Act. (a) [Principal/Chief Commissioner] Commissioner of List is indicative State tax, (b) Special Commissioners of State tax, (c) Additional Commissioners of State tax, (d) Joint Commissioners of State tax, (e) Deputy Commissioners of State tax, (f) Assistant Commissioners of State tax, and .(g) any other class of officers as it may deem fit: -15- 30f2005 Provided that, the officers appointed under the Sikkim Value Added Tax Act, 2005 shall be deemed to be the officers appointed under the provisions of this Act. 4. (1) TheGovernment may, inaddition to theofficers asmay Appointment be notified under section 3,appoint such persons as it of officers. may think fit to be the officers under this Act. (2) The Commissioner shall have jurisdiction over the whole of the State, the Special Commissioner and an Additional Commissioner in respect of all or any of the functions assigned to them, shall have jurisdiction over the whole of the State or where the State Government so directs, over any local area thereof, and all other officers shall, subject to such conditions as may be specified, have jurisdiction over the whole of the State or over such local areas as the Commissioner may, by order, specify. 5. (1) Subject to such conditions and limitations as the Commissioner may impose, an officer of State tax may Powers of exercise the powers and discharge the duties conferred officers. or imposed on him under this Act. (2) An officer of State tax may exercise the powers and discharge the duties conferred or imposed under this Act on any other officer of State tax who issubordinate to him. (3) The Commissioner may, subject to such conditions and limitations as may be specified in this behalf by him, delegate his powers to any other officer who issubordinate to him. (4) Notwithstanding anything contained in this section, an Appellate Authority shall not exercise the powers and discharge the duties conferred or imposed on any other officer of State tax. 6. (1)Without prejudice to the provisions of this Act, the Authorisat[on officers appointed under the Central Goods and of officers Services Tax Act are authorised to be the proper of central officers for the purposes of this Act, subject to such .tax as conditions as the Government shall, on the proper recommendations of the Council, by notification, officer specify. in certain (2) Subject to the conditions specified inthe notification issued circumstances. under sub-section (1),- (a) where any proper officer issues an order under this Act, he shall also issue an order under the Central Goods and Services Tax Act, as authorised by the said Act under intimation tothe jurisdictional officer ofcentral tax; (b) where a proper officer under the Central Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the proper officer under this Act on the same subject matter. -16- (3) Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under this Act, shall not lie before an officer appointed under the Central Goods and Services Tax Act. CHAPTER III LEVY AND COLLECTION OF TAX 7. (1) For the purposes of this Act, the expression "supply" Scope includes- of supply. (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person inthe course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority inwhich they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations ofthe Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. 8. The tax liability on a composite or a mixed supply shall be Tax liability on determined in the following manner, namely: - composite and mixed (a) a composite supply comprising two or more supplies, supplies. one of which isa principal supply, shall be treated as a supply of such principal supply; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax. -17- 9. (1) Subject to the provisions of sub-section (2), there shall be Levy a d levied a tax called the Sikkim goods and services tax on colle ti all intra-State supplies of goods or services or both, exce ~ on the supply of alcoholic liquor for human consurnptio , on the value determined under section 15 and at suc rates, not exceeding twenty per cent., as may be notified bythe Government on the recommendations ofthe Council and collected in such manner as may be prescribed and shall be paid by the taxable person, (2) The State tax on the supply of petroleum crude, high speed diesel" motor spirit (commonly known as petrol), natural gas and aviation turbine fuel, shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. (3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and allthe provisions ofthis Act shall apply to such recipient as if he isthe person liable for paying the • tax in relation to the supply of such goods or services or both. (4) The State tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as ifhe isthe person liable for paying the tax in relation to the supply of such goods or services or both. (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator ifsuch services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he isthe supplier liable for paying the tax in relation to the supply of such services: Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax: Provided further that where an electronic commerce operator does not have a physical presence inthe taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax. -18- 10. (1) Notwithstanding anything to the contrary contained in this Composition Act but subject to the provisions of sub-sections (3) and levy. (4) of section 9, a registered person, whose aggregate turnover inthe preceding financial year did not exceed fifty lakh rupees may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not exceeding,- (a) one per cent. of the turnover in State in case of a manufacturer, (b) two and a half per cent. of the turnover in State in case of persons engaged in making supplies referred to in clause (b)ofparagraph 6of Schedule II,and (c) half per cent. of the turnover in State in case of other suppliers, subject to such conditions and restrictions as may be prescribed: Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council. (2) The registered person shall be eligible to opt under sub- section (1), if- (a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule" ; (b) he isnot engaged in making any supply of goods which are not leviable to tax under this Act; J (c) he is not engaged in making any inter-State outward supplies of goods; (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council: Provided that where more than one registered person are having the same Permanent Account Number (issued under the 43 of 1961 Income-tax Act 1961), the registered person shall not be eligible to opt for the scheme under sub-section (1) unless all such registered persons opt to pay tax under that sub-section. (3) The option availed of by a registered person under sub- section (1) shall lapse with effect from the day on which his aggregate turnover during afinancial year exceeds the limit specified under sub-section(1). -19- (4) A taxable person to whom the provisions of sub-section (1) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax. (5) If the proper officer has reasons to believe that a taxable person has paid tax under sub-section (1) despite not being eligible, such person shall, in addition to any tax that may be payable by him under any other provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74 shall, mutatis mutandis, apply for determination of tax and penalty. 11. (1) Where the Government is satisfied that it is necessary in Power to the public interest so to do, itmay, on the recommendations grant of the Council, by notification, exempt generally, either exemption absolutely or subject to such conditions as may be specified from tax. therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification. (2) Where the Government is satisfied that it is necessary in the public interest so to do, itmay, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable. (3) The Government may, ifitconsiders necessary orexpedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub- section (2), and every such explanation shall have effect as ifithad always been the part ofthe first such notification or order, as the case may be. (4) Any notification issued by the Central Government, on the recommendations of the Council, under sub- section (1) of section 11 or order issued under sub- section (2) of the said section of the Central Goods and Services Tax Act shall be deemed to be a notification or, as the case may be, an order issued under this Act. Explanation.-For the purposes of this section, where an exemption in respect of any goods or services or both from the whole orpart ofthetax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both. -20- CHAPTER IV TIME AND VALUE OF SUPPLY 12. (1) The liability to pay tax on goods shall arise at the time of Time of supply, as determined in accordance with the provisions supply of of this section. goods. (2) The time of supply of goods shall be the earlier of the following dates, namely:- (a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or . (b) the date on which the supplier receives the payment with respect to the supply: Provided that where the supplier oftaxable goods receives an amount up to one thousand rupees in excess of the amount indicated inthe tax invoice, the time of supply to the extent of such excess amount shall, atthe option of the said supplier, be the date of issue of invoice in respect of such excess amount. Explanation 1.-For the purposes of clauses (a) and (b), "supply" shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be,the payment. Explanation 2.-For the purposes of clause (b), "the date on which the supplier receives the payment" shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever isearlier. (3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charqe basis, the time of supply shall be the earliest of the following dates, namely:- (a) the date of the receipt of goods; or (b)the date of payment as entered inthe books of account of the recipient or the date on which the' payment is debited in his bank account, whichever is earlier; or (c) the date immediately following thirty days from the date of issue of invoice or any other'document, by whatever name called, in lieu thereof by the supplier: Provided that where itis not possible to determine the time of supply under clause (a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of account of the recipient of supply. (4) In case of supply of vouchers by a supplier, the time of supply shall be- (a) the date of issue of voucher, ifthe supply is identifiable at that point; or (b) the date of redemption of voucher, in all other cases. -21- (5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall- (a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or (b) in any other case, be the date on which the tax is paid. (6) The time of supply to the extent it relates to an addition in the value of supply byway of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value. 13. (1) The liability to pay tax on services shall arise at the time of Time of supply, as determined in accordance with the provisions supply of of this section. services. (2) -The time of supply of services shall be the earliest of the following dates, namely:- (a) the date of issue of invoice bythe supplier, ifthe invoice isissued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or (b) the date ofprovision ofservice, ifthe invoice isnot issued within the period prescribed under sub-section (2) of section 31 orthe date of receipt of payment, whichever' is earlier; or (c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply: Provided that where the supplier oftaxable service receives an amount upto one thousand rupees in excess of the amount indicated inthe tax invoice, the time of supply to the extent of such excess amount shall, atthe option of the said supplier, be the date of issue of invoice relating to such excess amount. Explanation.-For the purposes of clauses (a) and (b)- (i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment; (ii) "the date of receipt of payment" shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier. (3).ln case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:- (a) the date of payment as entered inthe books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or -22- (b) the date immediately following sixty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier: Provided that where it is not possible to determine the time of supply under clause (a) or clause (b), the time of supply shall be the date of entry in the books of account of the recipient of supply: Provided further that in case of supply by associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry inthe books of account of the recipient of supply or the date of payment, whichever is earlier. (4) In case of supply of vouchers by a supplier, the time of supply shall be- (a) the date of issue of voucher, ifthe supply is identifiable at that point;

or (b) the date of redemption of voucher, in all other cases. (5) Where it is not possible to determine the time of supply under the provisions of SUb-section (2) or sub-section (3) or sub-section (4), the time of supply shall- (a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or (b) in any other case, be the date on which the tax is paid. (6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value. 14. Notwithstanding anything contained insection 12or section Change in 13, the time of supply, where there is achanqe in the rate rate oftax of tax in respect of goods or services or both, shall be in respect determined in the following manner, namely:- of supply of goods (a) in case the goods or services or both have been supplied or services. before the change in rate of tax,--:;- (i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of invoice, whichever is earlier; or (ii) where the invoice has been issued prior to the change in rate of tax but payment is received after the change in rate of tax, the time of supply shall be the date of issue of invoice; or (iii) where the payment has been received before the I change in rate of tax, but the invoice for the same is issued after the change in rate oftax, the time of supply shall be the date of receipt of payment; -23- (b) in case the goods or services or both have been supplied after the change in rate of tax,- (i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or (ii) where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shan be the date of receipt of payment or date of issue of invoice, whichever is earlier; or (iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice: Provided that the date of receipt of payment shall be the date of credit inthe bank account ifsuch credit inthe bank account is after four working days from the date of change in the rate of tax. Explanatioh.-For the purposes of this section, "the date of receipt of payment" shall be the date on which the payment is entered inthe books of account ofthe supplier orthe date on which the payment is credited to his bank account, whichever is earlier. 15. (1) The value of a supply of goods or services or both shall be Value of the transaction value, which is the price actually paid or taxable payable for the said supply of goods or services or both supply. where the supplier and the recipient of the supply are not related and the price isthe sole consideration for the supply. (2) The value of supply shall include- (a) any taxes, duties, cesses, fees and charges levied under any law for the tirne being inforce other than this Act, the Central Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and -24- (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation.-For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value ofthe supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the time ofsuch supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. (4) Where the value of the supply of goods or services or both cannot be determined under sub-section (1),the same shall be determined in such manner as may be prescribed. (5) Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of such supplies as may be notified bythe Government on the recommendations ofthe Council shall be determined in such manner as may be prescribed. Explanation.- For the purposes of this Act,- (a) persons shall be deemed to be "related persons" if - (i) such persons are officers or directors of one another's businesses; (ii) such persons are legally recognised partners in business; (iii) such persons are employer and employee; (iv) any person directly or indirectly owns, controls or holds twenty-five per cent. or more of the outstanding voting stock or shares of both of them; (v) one ofthem directly or indirectly controls the other; (vi) both of them are directly or indirectly controlled by a third person; (vii) together they directly or indirectly control a third person; or (viii) they are members of the same family; -25- (b) the term "person" also includes legal persons. (c) persons who are associated inthe business of one another in that one is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related. CHAPTER V INPUT TAX CREDIT 16. (1) Every registered person shall, subject to such conditions Eligibility and and restrictions as may be prescribed and in the manner conditions for specified insection 49, be entitled to take credit of input tax taking input charged on any supply of goods or services or both to him tax credit. which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of atax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient CJrany other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either byway oftransfer ofdocuments oftitle to goods or otherwise; (c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either incash orthrough utilisation of input tax credit admissible in respect of the said supply; and (d) he has furnished the return under section 39: Provided that where the goods against an invoice are received in lots or instalments, the registered person shall be entitled to take credit upon receipt of the last lot or instalment: Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: -26- Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along 43 of 1961. with tax payable thereon. (3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions ofthe Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed. . (4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. 17. (1) Where the goods or services or both are used by the Apportionment registered person partly for the purpose of any business of credit and and partly for other purposes, the amount of credit shall be blocked restricted to so much of the input tax as is attributable to credits. the purposes of his business. (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much ofthe input tax as is attributable to the said taxable supplies including zero-rated supplies. (3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5of Schedule II,sale of building. (4) A banking company orafinancial institution including anon- banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions ofsub-section (2), oravail of, every month, an amount equal to fifty per cent. of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse: Provided that the option once exercised shall not be withdrawn during the remaining part of the financial year: Provided further that the restriction of fifty percent. shall not apply tothe tax paid on supplies made by one registered person to another registered person having the same Permanent Account Number. -27- (5) Notwithstanding anything contained in sub-section (1) of section 16and sub-section (1)ofsection 18,input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles and other conveyances except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances; or (8) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods; (b) the following supply of goods or services or both:- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) membership of aclub, health and fitness centre; (iii) rent-a-cab, life insurance and health insurance except where - (A)the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or (8) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and (iv) travel benefits extended to employees on vacation such as leave or home travel concession. (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply ofworks contract service; (d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. -28- Explanation.-For the purposes of clauses (c) and (d), the expression "construction" includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; (e) goods or services or both on which tax has been paid under section-t 0; (f) goods or services or both received by a non- resident taxable person except on goods imported by him; (g) goods or services or both used for personal consumption; (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid in accordance with the provisions of sections 74,129 and 130. (6) The Government may prescribe the manner in which the credit referred to in sub-sections (1) and (2) may be attributed. Explanation.- Forthe purposes ofthis Chapter and Chapter VI, the expression "plant and machinery" means apparatus, equipment, and machinery fixed to earth byfoundation orstructural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes- (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises. 18. (1) Subject to such conditions and restrictions as may be Availability of prescribed- credit in special (a) a person who has applied for registration under this circumstances. Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions ofthis Act; (b) a person who takes registration under sub-section (3) of section 25 shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration; -29- (c) where any registered person ceases to pay tax under section 10, he shall be entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods onthe day immediately preceding the date from which he becomes liable to pay tax under section 9: Provided that the credit on capital goods shall be reduce~ by such percentage points as may be prescribed; (d) where an exempt supply of goods or services or both bya registered person becomes ataxable supply, such person shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply andon capital goods exclusively used for such exempt supply on the day immediately preceding he da e ro which such supply becomes taxable: Provided ha he credit on capital goods shall be reduced by such percen"age points as may be prescribed. (2) A regis ered person shall not be entitled to take input tax credi under sub-section (1) in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply. (3) Where there is a change in the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said registered person shall be allowed to transfer the input tax credit which remains unutilised in his electronic credit ledger to such sold, merged, demerged, amalgamated, leased or transferred business in such manner as may be prescribed. (4) Where any registered person who has availed of input tax credit opts to pay tax under section 10or, where the goods orservices or both supplied by him become wholly exempt, he shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent" to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in . stock and on capital goods, reduced by such percentage points as may be prescribed, on the day immediately preceding the date of exercising of such option or, as the case may be, the date of such exemption: Provided that after payment of such amount, the balance of input tax credit, ifany, lying inhis electronic credit ledger shall lapse. -30- (5) The amount of credit under sub-section (1) and the amount payable under sub-section (4) shall be calculated in such manner as may be prescribed. (6) In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery determined under section15, whichever is higher: Provided that where refractory bricks, moulds and dies, jigs and fixtures are supplied as scrap, the taxable person may pay tax on the transaction value of such goods determined under section15. 19. (1) The principal shall, subject to such conditions and Taking i ir; restrictions as may be prescribed, be allowed input tax tax cre ': i•... credit on inputs sent to a job worker for job work. respect f (2) Notwithstanding anything contained in clause (b) of sub- inputs a section (2) of section 16, the principal shall be entitled to capital go s take credit of input tax on inputs even if the inputs are sent for j directly sent to ajob worker for job work without being first work. brought to his place of business. (3) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise or are not supplied from the place of business of the job worker in accordance with clause (a) or clause (b)of sub- section (1) of section 143 within one year of being sent out, itshall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out: Provided that where the inputs are sent directly to a job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker. (4) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on capital goods sent to a job worker for job work. (5) Notwithstanding anything contained in clause (b) of sub- section (2) of section 16, the principal shall be entitled to take credit of input tax on capital goods even ifthe capital goods are directly sent to ajob worker for job work without being first brought to his place of business. (6) Where the capital goods sent for job work are not received back by the principal within a period ofthree years of being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out: -31- ,e e he capital goods are sent directly to ajob --e eriod o' hree years shall be counted from the date of ~ ~r -:::.e.c: icapi al goods by the job worker. J I 0 hing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and fixtures, or tools sent out to a jobworker for job work. Explanation.- For the purpose of this section, "principal" means the person referred to in section 143. 20. (1) The Input Service Distributor shall distribute the credit of Mannerof State tax as State tax or integrated tax and integrated tax distribution of as integrated tax or State tax, by way of issue of document credit by containing the amount of input tax credit being distributed Input Service in such manner as may be prescribed. Distributor. (2) The Input Service Distributor may distribute the credit subjec 0 he following conditions, namely:- (a) the credi can be distributed to the recipients of credit against a document containing such details as may be prescribed; (b) the amount of the credit distributed shall not exceed the amount of credit available for distribution; (c) the credit of tax paid on input services attributable t6 a recipient of credit shall be distributed only to that recipient; (d) the credit of tax paid on input services attributable to more than one recipient of credit shall be distributed amongst such recipients to whom the input service is attributable and such distribution shall be pro rata on the basis ofthe turnover ina State orturnover ina Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational inthe current year, during the said relevant period; (e) the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate ofthe turnover of all recipients and which are operational in the current year, during the said relevant period. Exp/anation.-For the purposes of this section,- (a) the "reievant period" shall be- (i) if the recipients of credit have turnover in their States or Union territories in the financial year preceding the year during which credit is to be distributed, the said financial year; or -32- (ii) if some or all recipients of the credit do not have any turnover intheir States or Union territories inthe financial year preceding the year during which the credit isto be distributed, the last quarter for which details of such turnover of all the recipients are available, previous to the month during which credit is to be distributed; (b) the expression "recipient of credit" means the supplier of goods or services or both having the same Permanent Account Number asthat ofthe Input Service Distributor; (c) the term "turn over", in relation to any registered person engaged inthe supply oftaxable goods aswell as goods not taxable under this Act, means the value ofturnover, reduced by the amount of any duty or tax levied under entry 84 of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule. 21. Where the Input Service Distributor distributes the credit i{1 Mannerof contravention ofthe provisions contained insection 20 resulting recovery of in excess distribution of credit to one or more recipients of credit credit, the excess credit so distributed shall be recovered from distributed in such recipients along with interest, and the provisions ofsection excess. 73 or section 74, as the case may be, shall, mutatis mutandis, apply for determination of amount to be recovered. CHAPTER- VI REGISTRATION 22. (1) Every supplier making a taxable supply of goods or Persons services or both in the State shall be liable to be liable for registered under this Act if his aggregate turnover in registration. a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies ofgo09s orservices or both from any ofthe special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Every supplier making a taxable supply of goods or services Only in or bothin·theState, shall be liable to be registered under this SGST Law Act if his aggregate turnover in a financial year exceeds ten for special lakh rupees. category (2) Every person who, on the day immediately preceding the States appointed day, is registered or holds a license under an without the existing law, shall be liable to be registered under this Act proviso with effect from the appointed day. (3) Where a business carried on by a taxable person registered under this Act istransferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession. -33- (4) Notwithstanding anything contained insub-sections (1)and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies pursuant toan order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal. Explanation.-For the purposes of this section,- (i) the exp.ression "aggregate turn over" shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals; (ii) the supply of goods, after completion of job work, by a registered job worker shall betreated asthe supply ofgoods by the principal referred to in section 143, and the value of such goods shall not be included iQthe aggregate turnover of the registered job worker; (iii) the expression "special category States" shall mean the States as specified in sub-clause (g) of clause (4) of article 279A ofthe Constitution. 23. (1) The following persons shall not be liable to registration, Persons not namely:- liable for registration. (a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act; (b) an agriculturist, to the extent of supply of produce out of cultivation of land. (2) The Government may, on the recommendations of the Council, by notification, specify the category ofpersons who may be exempted from obtaining registration underthis Act. 24. Notwithstanding anything contained insub-section (1)ofsection Compulsory 22, the following categories of persons shall be required to be registration in registered under this Act,- certain cases. (i) persons making any inter-State taxable supply; (ii) casual taxable persons making taxable supply; (iii) persons who are required to pay tax under reverse charge; (iv) person who are required to pay tax under sub-section (5) of section 9; (v) non-resident taxable persons making taxable supply; (vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act; -34- ·(rii) s c rna etaxao es se: es 0: ~()()(JS0 or on benalt 0' 0 ner axaole persons e ner as an agen or 0 herwise; (viii) Input Service Distributor, whether or not separately registered under this Act; (ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52; (x) every electronic commerce operator; (xi) every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person; and (xii) such other person or class Ofpersons as may be notified by the Government. on the recommendations of the Council. 25. (1) Every person who is liable to be registered under Procedure for section 220r section 24 shall apply for reqietretion registration. within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may beprescribed: Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. Explanation.- Every person who makes a supply from the territorial waters of India shall obtain registration in the State where the nearest point of the appropriate baseline is located in the State. (2) A person seeking registration under this Act shall be granted a single registration: Provided that a person having multiple business verticets in the State may be granted a separate registration for eachbusiness vertical, subject tosuch conditions asmay be prescribed. (3) A person, though not liable to be registered under section 220r section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person. (4) A person who has obtained or is required to obtain more than one registration, whether inone State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act. (5) Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or -35- Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act. 43 of 1961. (6) Every person shall have a Permanent Account Number issued under the Income-tax Act, 1961 inorder to be eligible for grant of registration: Provided that a person required to deduct tax under section 51mayhave, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration. (7) Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (1) on the basis ofsuch other documents as may be prescribed. (8) Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action which may be taken under this Act or under any other law for the time being in force, proceed to register such person in such manner as may be prescribed. (9) Notwithstanding anything contained in sub-section (1),- 460f1947. (a) any specialised agency of the United Nations Organisation or any Multllateral.Financial tnstitution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and (b) any other person or class of persons, as may be notified by the Commissioner, shall be granted a Unique Identity Number in such manner and for such purposes, including refund of taxes on the notified supplies of goods or services or both received by them, as may be prescribed. (10) The registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed. (11) A certificate of registration shall be issued in such form and with effect from such date as may be prescribed. (12) A registration or a Unique Identity Number shall be deemed to have been granted after the expiry ofthe period prescribed under sub-section (10), if no deficiency has been communicated to the applicant within that period. 26. (1) The grant of registration or the Unique Identity Number Deemed under the Central Goods and Services Tax Act shall be registration. deemed to be a grant of registration or the Unique Identity Number under this Act subject to the condition that the application for registration or the Unique Identity Number -36- , has not been rejected under this Act within the time specified in sub-section (10) of section 25. (2) Notwithstanding anything contained in sub-section (10) of section 25, any rejection of application for registration or the Unique Identity Number under the Central Goods and Services Tax Act shall be deemed to be a rejection of application for registration under this Act. 27. (1) The certificate of registration issued to a casual taxable Special person or a non-resident taxable person shall be valid for provisions the period specified in the application for registration or relating to ninety days from the effective date of registration, whichever casual isearlier and such person shall make taxable supplies only taxable after the issuance of the certificate of registration: person and Provided that the proper officer may, on sufficient cause non-resident being shown by the said taxable person, extend the said period of taxable "- ninety days by a further period not exceeding ninety days. person. (2) A casual taxable person or a non-resident taxable person shall, atthe time ofsubmission ofapplication for registration under sub-section (1) of section 25, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought: Provided that where any extension of time is sought under sub-section (1), such taxable person shall deposit an additional amount oftax equivalent to the estimated tax liability ofsuch person for the period for which the extension is sought. (3) The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49. 28. (1) Every registered person and a person to whom a Unique Amendment Identity Number has been assigned shall inform the proper of officer of any changes in the information furnished at the registration. time of registration or subsequent thereto, in such form and manner and within such period as may be prescribed. (2)The proper officer may, on the basis of information furnished under sub-section (1) or as ascertained by him, approve or reject amendments in the registration particulars in such manner and within such period as may be prescribed: Provided that approval of the proper officer shall not be required in respect of amendment of such particulars as may be prescribed: Provided further that the proper officer shall not reject the application for amendment in the registration particulars without giving the person an opportunity of being heard. (3) Any rejection or approval of amendments under the Central Goods and Services Tax Act shall be deemed to be a rejection or approval under this Act. -37- 29. (1) The proper officer may, either on his own motion or on an Cancellation application filed by the registered person or by his legal of heirs, in case of death of such person, cancel the registration, insuch manner and within such period as may registration. be prescribed, having regard to the circumstances where,- (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or (b) there isany change inthe constitution ofthe business; or (c) thetaxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24. (2) The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,- (a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or (b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or (c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or (d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or (e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard. (3) The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. (4) The cancellation of registration under the Central Goods and Services Tax Act shall be deemed to be a cancellation of registration under this Act. (5) Every registered person whose registration is cancelled shall pay an amount, byway of debit inthe electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock -38- or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed orthe tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher. (6) The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed. I 30. (1) Subject to such conditions as may be prescribed, any Revocation registered person, whose registration is cancelled by the of proper officer on his own motion, may apply to such officer cancellation for revocation of cancellation of the registration in the of prescribed manner within thirty days from the date of registration. service of the cancellation order. (2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application: Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard. (3) The revocation of cancellation of registration under the Central Goods and Services Tax Act shall be deemed to be a revocation of cancellation of registration under this Act. CHAPTER-VII TAX INVOICE, CREDIT AND DEBIT NOTES 31. (1) A registered person supplying taxable goods shall, before Tax invoice. or at the time of,- (a) removal of goods for supply to the recipient, where the ' supply involves movement of goods; or '; (b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed: Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall' be issued, within such time and in such manner as may be prescribed. -39- (2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed: Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which- (a) any other document issued in relation tothe supply shall be deemed to be a tax invoice; or (b) tax invoice may not be issued. (3) Notwithstanding anything contained in sub-sections (1) and (2)- (a) a registered person may, within one month from the date of issuance of certificate of registration and insuch manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him; (b) a registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed; (c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed: Provided that the registered person may not issue a bill of supply ifthe value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed; (d) a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment; (e) where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply ismade and notax invoice isissued inpursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment; -40- (f) a registered person who is liable to pay tax under sub- section (3) orsub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both; (g) a registered person who is liable to pay tax under sub- section (3) or sub-section (4) of section 9shall issue a payment voucher at the time of making payment to the supplier. (4) In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received. (5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services,- (a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment; / (b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment; (c) where the payment is linked to the completion of an event; the invoice shall be issued on or before the date of completion of that event. (6) In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation. (7) Notwithstanding anything contained in sub-section (1). where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier. Exp/anation.--For the purposes of this section, the expression "tax invoice" shall include any revised invoice issued by the supplier in respect of a supply made earner. 32. (1) A person who is not a registered person shall not collect in Prohibition of respect of any supply of goods or services or both any unauthorised amount by way of tax under this Act. collection of tax (2) No registered person shall collect tax except in accordance with the provisions ofthis Act orthe rules made there under. -41- 33. Notwithstanding anything contained inthis Act or any other Amount of law for the time being in force, where any supply is made tax to be for a consideration, every person who is liable to pay tax indicated in for such supply shall prominently indicate in all documents tax invoice relating to assessment, tax invoice and other like and other documents, the amount of tax which shall form part of the documents. price at which such supply is made. 34. (1) Where atax invoice has been issued for supply ofany goods Credit and or services or both and the taxable value or tax charged in debit notes. that tax invoice isfound to exceed the taxable value or tax payable' in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed. (2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note inthe return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed: Provided that no reduction inoutput tax liability ofthe supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person. (3) Where atax invoice has been issued forsupply ofany goods or services or both and the taxable value or tax charged in that tax invoice isfound to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed. (4) Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare the details of such debit note inthe return for the month during which such debit note has been issued and the tax liability shall be adjusted in such manner as may be prescribed. Explanation.-For the purposes ofthis Act, the expression "debit note" shall include a supplementary invoice. -42- CHAPTER VIII ACCOUNTS AND RECORDS s Accounts 35. (1) Every registered person shall keep and maintain, at his and other principal place of business, as mentioned in the certificate records. of registration, a true and correct account of- (a) production or manufacture of goods; (b) inward and outward supply of goods or services or both; (c) stock of goods; (d) input tax credit availed; (e) output tax payable and paid; and (f) such other particulars as may be prescribed: Provided that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business: Provided further that the registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed.

(2) Every owner or operator ofwarehouse or godown or any other place used for storage of goods and every transporter, irrespective of whether he is a registered person or not, shall maintain records of the consigner, consignee and other relevant details ofthe goods insuch manner as may be prescribed. (3) The Commissioner may notify aclass oftaxable persons to maintain additional accounts or documents for such purpose as may be specified therein. (4) Where the Commissioner considers that any class of taxable persons is not in a position to keep and maintain accounts in accordance with the provisions of this section, he may, for reasons to be recorded in writing, permit such class of taxable persons to maintain accounts in such manner as may be prescribed. (5) Every registered person whose turnover during afinancial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed. (6) Subject to the provisions of clause (h) of sub-section (5) ofsection 17,where the registered person fails to account for the goods or services or both in accordance with the provisions of sub-section (1), the proper officer shall determine the amount of tax payable on the goods or services or both that are not accounted for, as if such -43- goods or services or both had been supplied by such person and the provisions of section 73 or section74, as the case maybe, shall, mutatis mutandis, apply for determination of such tax. 36. Every registered person required to keep and maintain Period of books of account or other records in accordance with the retention of provisions of sub-section (1) of section --35 shall retain accounts. them until the expiry of seventy two months from the due date of furnishing of annual return for the year pertaining to such accounts and records: Provided. that a registered person, who is a party to an appeal or revision or any other proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him or by the Commissioner, or is under investigation foran offence under Chapter XIX, shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of one year after final disposal of such appeal or revision or proceedings or investigation, or for the period specified above, whichever is later. CHAPTER-IX RETURNS 37. (1) Every registered person, other than an Input Service Furnishing Distributor, a non-resident taxable person and a person details of paying tax under the provisions of section 10 or section 51 outward or section 52, shall furnish, electronically, in such form and supplies. manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period on or before the tenth day of the month succeeding the said tax period and such details shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed: Provided that the registered person shall not be allowed to furnish the details of outward supplies during the period from the eleventh day to the fifteenth day of the month succeeding the tax period: Provided further that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein: Provided also that any extension of time limit notified by the Commissioner of centraltax shall be deemed to be notified by the Commissioner. . (2) Every registered person who has been communicated the details under sub-section (3) of section 38 or the details pertaining to inward supplies of Input Service Distributor -44- under sub-section (4) of section 38, shall either accept or reject the details so communicated, on or before the seventeenth day, but not before the fifteenth day, of the month succeeding the tax period and the details furnished by him under sub-section (1) shall stand amended accordingly. (3) Any registered person, who has furnished the details under sub-section (1)for any tax period and which have remained unmatched under section 42 or section 43, shall, upon discovery ofany error or omission therein, rectify such error or omission in.such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period: Provided that no rectification of error or omission in respect ofthe details furnished under sub-section (1) shall be allowed after furnishing ofthe return under section 39for the month ofSeptember following the end ofthe financial year towhich such details pertain, or furnishing of the relevant annual return, whichever is earlier. Exp/anation.--For the purposes of this Chapter, the expression "details of outward supplies" shall include details of invoices, debit notes, credit notes and revised invoices issued in relation to outward supplies made during any tax period. 38. (1) Every registered person, other than an Input Service Furnishing Distributor or a non-resident taxable person or a person details of paying tax under the provisions of section 10 or section 51 inward or section 52, shall verify, validate, modify or delete, if supplies. required, the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section 37 to prepare the details of his inward supplies and credit ordebit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have not been declared by the supplier under sub-section (1) of section 37. (2) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish, electronically, the details of inward supplies of taxable goods or services or both, including inward supplies of goods or services or both on which the tax is payable on reverse charge basis under this Act and inward supplies of goods or services or both taxable under the Integrated Goods and Services Tax Act or on which integrated goods and services tax is payable under section 3of the Customs Tariff Act, 1975, and credit or debit notes received in respect of such supplies during atax period after the tenth day but on or before the fifteenth day of the month succeeding the tax period in such form and manner as may be prescribed: -45- Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein: Provided further that any extension of time limit notified by the Commissioner of centraltax shall be deemed to be notified by the Commissioner. (3) The details of supplies modified, deleted or included by the recipient and furnished under sub-section (2)shall be communicated to the supplier concerned in such manner and within such time as may be prescribed. (4) The details of supplies modified, deleted or included by the recipient in the return furnished under sub-section (2) or sub-section (4) of section 39 shall be communicated to the supplier concerned in such manner and within such time as may be prescribed. (5) Any registered person, who has furnished the details under sub-section (2)for any tax period and which have remained unmatched under section 42 or section 43, shall, upon discovery ofany error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shali pay the tax and interest, ifany, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period: Provided that no rectification of error or omission in respect ofthe details furnished under sub-section (2) shall be allowed after furnishing ofthe return under section 39for the month of September following the end ofthe financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier. 39.(1) Every registered person, other than an Input Service Furnishing Distributor or a non-resident taxable person or a person .of returns. paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward suppiies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particuiars as may be prescribed on or before the twentieth day of the month succeeding such calendar month or part thereof. (2) A registered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter. -46- (3) Every registered person required to deduct tax at source under the provisions of section 51 shall furnish, in such form and manner as may be prescribed, a return, electronically, for the month inwhich such deductions have been made within ten days after the end of such month. (4) Every taxable person registered as an Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, e!ectronically, within thirteen days after the end of such month. (5) Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within twenty days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub-section(1) of section 27, whichever is earlier. (6) The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein: Provided that any extension of time limit notified by the Commissioner of centraltax shall be deemed to be notified bythe Commissioner. (7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return. (8) Every registered person who is required to furnish a return under sub-section (1) or sub-section (2) shall furnish a return for every tax period whether or not any supplies of goods or services or both have been made during such tax period. (9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub- section (1)or sub-section (2) sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, subject to payment of interest under this Act: Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end ofthe financial year, orthe actual date offurnishing of relevant annual return, whichever is earlier. -47- (10) A registered person shall not be allowed to furnish a return for atax period ifthe return for any ofthe previous tax periods has not been furnished by him. 40. Every registered person who has made outward supplies First Return. in the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return furnished by him after grant of registration. 41. (1) Every registered person shall, subject to such conditions Claim of and restrictions as may be prescribed, be entitled to take input tax the credit of eligible input tax, as self-assessed, inhis return credit and and such amount shall be credited on a provisional basis provisional to his electronic credit ledger. acceptance thereof. (2) The credit referred to in sub-section (1) shall be utilised only for payment of self-assessed output tax as per the return referred to in the said sub-section. 42. (1)The details of every inward supply furnished by a registered Matching, person (hereafter in this section referred to as the reversal "recipient") for atax period shall, insuch manner and within and such time as may be prescribed, be matched- reclaim of input tax (a) with the corresponding details of outward supply credit. furnished by the corresponding registered person (hereafter in this section referred to as the "supplier") in his valid return for the same tax period or any preceding tax period; 51 of1975. (b) with the integrated goods and services tax paid under section 3 of the Customs Tariff Act, 1975 in respect of goods imported by him; and (c) for duplication of claims of input tax credit. (2) The claim of input tax credit in respect of invoices or debit notes relating to inward supply that match with the details of corresponding outward supply or with the integrated 51 of 1975 goods and services tax paid under section 3ofthe Customs Tariff Act, 1975 in respect of goods imported by him shall be finally accepted and such acceptance shall be communicated, in such manner as may be prescribed, to the recipient. (3) Where the input tax credit claimed by a recipient in respect of an inward supply is in excess of the tax declared by the supplier for the same supply or the outward supply is not declared by the supplier inhis valid returns, the discrepancy shall be communicated to both such persons in such manner as may be prescribed. (4) The duplication of claims of input tax credit shall be communicated to the recipient in such manner as may be prescribed. -48- (5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the recipient, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. (6) The amount claimed as input tax credit that is found to be inexcess on account of duplication ofclaims shall be added to the output tax liability of the recipient in his return for the month in which the duplication is communicated. (7) The recipient shall be eligible to reduce, from his output tax liability, the amount added under sub-section (5), ifthe supplier declares the details of the invoice or debit note in his valid return within the time specified in sub-section (9) of section 39. (8) A recipient inwhose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest atthe rate specified under sub-section (1) of section 50 on the amount so added from the date of availing of credit till the corresponding additions are made under the said sub-sections. (9) Where any reduction inoutput tax liability isaccepted under sub-section (7),the interest paid under sub-section (8)shall be refunded to the recipient by crediting the amount in the corresponding head of his electronic cash ledger in such manner as may be prescribed: Provided that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the supplier. (10) The amount reduced from the output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the recipient in his return for the month inwhich such contravention takes place and such recipient shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 50. 43. (1) The details of every credit note relating to outward supply Matching, furnished by a registered person (hereafter in this section reversal and referred to as the "supplier") for a tax period shall, in such reclaim of manner and within such time as may be prescribed, be reduction in matched- output tax (a) with the corresponding reduction in the claim for input liability. tax credit by the corresponding registered person (hereafter in this section referred to as the "recipient") in his valid return for the same tax period or any subsequent tax period; and (b) for duplication of claims for reduction in output tax liability. -49- (2) The claim for reduction in output tax liability by the supplier that matches with the corresponding reduction inthe claim for input tax credit by the recipient shall be finally accepted and communicated, in such manner as may be prescribed, to the supplier. (3) Where the reduction of output tax liability in respect of outward supplies exceeds the corresponding reduction in the claim for input tax credit or the corresponding credit note is not declared by the recipient in his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be prescribed. (4) The duplication of claims for reduction in output tax liability shall be communicated to the supplier in such manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated under sub-section (3) and which is not rectified by the recipient in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. (6) The amount in respect of any reduction inoutput tax liability that isfound to be on account of duplication of claims shall be added tothe output tax liability ofthe supplier inhis return for the month in which such duplication is communicated. (7) The supplier shall be eligible to reduce, from his output tax liability, the amount added under sub-section (5) if the recipient declares the details of the credit note in his valid return within the time specified insub-section (9) of section 39. (8) A supplier inwhose output tax liability any amount has been added under sub-section (5) or sub-section (6), shall be liable to pay interest atthe rate specified under sub-section (1) of section 50 in respect of the amount so added from the date of such claim for reduction inthe output tax liability till the corresponding additions are made under the said sub-sections. (9) Where any reduction inoutput tax liability isaccepted under sub-section (7),the interest paid under sub-section (8)shall be refunded to the supplier by crediting the amount in the corresponding head of his electronic cash ledger in such manner as may be prescribed: Provided that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the recipient. (10) The amount reduced from output tax liability incontravention of the provisions of sub-section (7) shall be added to the output tax liability ofthe supplier in his return for the month -50- in which such contravention takes place and such supplier shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 50. 44. (1) Every registered person, other than an Input Service Annual Distributor, a person paying tax under section 51 or section return. 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year. (2) Every registered person who is required to get his accounts audited in accordance with the provisions ofsub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1)along with acopy ofthe audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed. 45. Every registered person who is required to furnish a return Final return. under sub-section (1) of section 39 and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as may be prescribed. 46. Where a registered person fails to furnish a return under Notice to section 39 or section 44 or section 45, a notice shall be return issued requiring him to furnish such return within fifteen defaulters. days in such form and manner as may be prescribed. 47. (1) Any registered person who fails to furnish the details of Levy of late outward or inward supplies required under section 37 or fee. section 38 or returns required under section 39 or section 45 bythe due date shall pay alatefee ofone hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees. (2) Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent. of his turnover in the State. 48. (1) The manner of approval of goods and services tax Goods and practitioners, their eligibility conditions, duties and services obligations, manner of removal and other conditions tax relevant for their functioning shall be such as may be practitioners. prescribed. (2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward -51- supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45in such manner as may be prescribed. (3) Notwithstanding anything contained insub-section (2), the responsibility for correctness of any particulars furnished inthe return or other details filed by the goods and services tax practitioners shall continue to rest with the registered person on whose behalf such return and details are furnished. CHAPTER-X PAYMENT OFTAX 49. (1) Every deposit made towards tax, interest, penalty, fee or Payme any other amount by a person by internet banking or by tax, using credit or debit cards or National Electronic Fund interes Transfer or Real Time Gross Settlement or by such other pena mode and subject to such conditions and restrictions as other may be prescribed, shall be credited to the electronic cash amo ledger of such person to be maintained in such manner as may be prescribed. (2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41, to be maintained in such manner as may be prescribed. (3) The amount available inthe electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made thereunder in such manner and subject to such conditions and within such time as may be prescribed. (4) The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed. (5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of - (a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may . be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order; (b) the central tax shall first be utilised towards payment of central tax and the amount remaining, ifany, may be utilised towards the payment of integrated tax; (c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards the payment of integrated tax; -52- (d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, ifany, may be utilised towards the payment of integrated tax; (e) the central tax shall not be utilised towards payment of State taxor Union territory tax; and (f) the State tax or Union territory tax shall not be utilised towards payment of central tax. (6) The balance inthe electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in accordance with the provisions of section 54. (7) All liabilities of a taxable person under this Act shall be recorded and maintained in an electronic liability register in such manner as may be prescribed. (8) Every taxable person shall discharge histax and other dues under this Act or the rules made thereunder inthe following order, namely:- (a) self-assessed tax, and other dues related to returns of previous tax periods; (b) self-assessed tax, and other dues related to the return of the current tax period; (c) any other amount payable under this Act or the rules made thereunder including the demand determined under section 73 or section 74. (9) Every person who has paid the tax on goods or services or both under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods or services or both. Explanation.-For the purposes of this section, (a) the date of credit to the account of the Government in the authorised bank shall be deemed to be the date of deposit in the electronic cash ledger; (b) the expression,- (i) "tax dues" means the tax payable under this Act and does not include interest, fee and penalty; and (ii)"other dues" means interest, penalty, fee or any other amount payable under this Act or the rules made thereunder. 50. (1) Every person who is liable to pay tax in accordance with Interest on the provisions ofthis Act or the rules made thereunder, but delayed fails to pay the tax or any part thereof to the Government payment of within the period prescribed, shall for the period for which tax. the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council. -53- (2) The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid. (3) A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub- section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty- four per cent., as may be notified by the Government on the recommendations of the Council. 51. (1) Notwithstanding anything to the contrary contained in this Tax Act, the Government may mandate,- deducti source. (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as "the deductor"), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as "the deductee") of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees: Provided that no deduction shall be made ifthe location of the supplier and the place of supply is in a State or Union territory which is different from the State or, as the case may be, Union territory of registration of the recipient. Explanation.-For the purpose of deduction oftax specified above, the value of supply shall be taken as the amount excluding .the central tax, State tax, integrated tax and cess indicated in the invoice. (2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end ofthe month inwhich such deduction is made, in such manner as may be prescribed. (3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid tothe Government and such other particulars in such manner as may be prescribed. (4) Ifany deductor fails tofurnish to the deductee the certificate, after deducting the tax atsource, within five days ofcrediting the amount so deducted to the Government, the deductor shall pay, byway of a late fee, asum of one hundred rupees -54- per day from the day after the expiry of such five day period until the failure is rectified, subject to a maximum amount of five thousand rupees. (5) The deductee shall claim credit, in his electronic cash ledger, ofthe tax deducted and reflected inthe return ofthe deductor furnished under sub-section (3) of section 39, in such manner as may be prescribed. (6) Ifany deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted. (7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section74. (8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54: Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee. 52. (1) Notwithstanding anything to the contrary contained in this Collection Act, every electronic commerce operator (hereafter in this of tax at section referred to as the "operator"), not being an agent, source. shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. Exp/anation.-For the purposes of this sub-section, the expression "net value oftaxable supplies" shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced bythe aggregate value oftaxable supplies returned tothe suppliers during the said month. (2) The power to collect the amount specified in sub-section (1) shall be without prejudice to any other mode of recovery from the operator. (3) The amount collected under sub-section (1) shall be paid to the Government by the operator within ten days after the end of the month in which such collection is made, in such manner as may be prescribed. (4) Every operator who collects the amount specified in sub- section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies -55- of goods or services or both returned through it, and the amount collected undersub-section (1)during a month, in such form and manner as may be prescribed, within ten days after the end of such month. (5) Every operator who collects the amount specified in sub- section(1)shallfurnishanannualstatement,electronically, containing the details of outward supplies of goods or services or both effected through it,including the supplies of goods or services or both returned through it, and the amount collected under the said sub-section during the financial year, in such form and manner as may be prescribed,beforethethirtyfirstdayofDecemberfollowing the end ofsuchfinancial year. (6) If any operator after furnishing a statement under sub- section (4)discovers anyomission or incorrect particulars therein,other than as a resultof scrutiny, audit, inspection orenforcementactivitybythetaxauthorities,heshallrectify such omission or incorrect particulars inthe statement to befurnished for the month during which such omission or incorrect particulars are noticed, subject to payment of interest, as specified insub-section (1)of section 50: Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of statement for the month of September following the end of the financial year or the actual date of furnishing of the relevant annual statement, whichever isearlier. (7) The supplier who hassupplied the goods or services or both through the operator shall claim credit, in his .electronic cash ledger, of the amount collected and reflectedinthestatementoftheoperatorfurnished under sub-section (4), in such manner as may be prescribed. (8) Thedetailsofsuppliesfurnishedbyeveryoperatorunder sub-section (4)shall be matchedwiththe corresponding details of outward supplies furnished by the concerned supplier registered under this Act in such manner and within such time as may be prescribed. (9) Where the details of outward supplies furnished by the operator under sub-section (4) do not match with the corresponding details furnished by the supplier under section 37, the discrepancy shall be communicated to both persons in such manner and within such time as may be prescribed. (10) The amount in respect of which any discrepancy is communicated under sub-section (9) and which is not rectified bythe supplier in,hisvalid returnortheoperator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability ofthesaid supplier, wherethevalue ofoutward supplies -56- furnished by the operator is more than the value of outward supplies furnished by the supplier, in his return for the month succeeding the month in which the discrepancy is communicated in such manner as may be prescribed. (11) The concerned supplier, in whose output tax liability any amount has been added under sub-section (10), shall pay the tax payable in respect of such supply along with interest, at the rate specified under sub-section (1) of section 50 on the amount so added from the date such tax was due till the date of its payment. (12) Any authority not below the rank of Deputy Commissioner may serve a notice, either before or during the course of any proceedings under this Act, requiring the operator to furnish such details relating to- (a) supplies of goods or services or both effected through such operator during any period; or (b) stock of goods held by the suppliers making supplies through such operator in the godowns or warehouses, by whatever name called, managed by such operator and declared as additional places of business by such suppliers, as may be specified in the notice. (13) Every operator on whom a notice has been served under sub-section (12) shall furnish the required information within fifteen working days of the date of service of such notice. (14) Any person who fails to furnish the information required bythe notice served under sub-section (12) shall, without prejudice to any action that may be taken under section 122, be liable to a penalty which may extend to twenty- five thousand rupees. Explanation.-For the purposes of this section, the expression "concerned supplier" shall mean the supplier of goods or services or both making supplies through the operator. 53. On utilisation of input tax credit availed under this Act for Transfer of payment of tax dues under the Integrated Goods and input tax Services Tax Act in accordance with the provisions of sub- credit. section (5) of section 49, as reflected in the valid return furnished under sub-section (1) of section 39, the amount collected as State tax shall stand reduced by an amount equal to such credit so utilised and the State Government shall transfer an amount equal to the amount so reduced from the Statetax account to the integrated tax account in such manner and within such time as may be prescribed. -57- CHAPTER XI REFUNDS 54.(1) Any person claiming refund of any tax and interest, if any, Refund paid on such tax or any other amount paid by him, may of tax. make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed: Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section--49, may claim such refund inthe return furnished under section 39 in such manner as may be prescribed. (2) Aspecialized agency ofthe United Nations Organization or any Multilateral Financial Institution and Organization 46 of 1947. notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy offoreign countries or any other person or class of persons, as notified under section 55, entitled to a refund oftax paid by it on inward supplies of goods or services or both, may make an application for such refund, in such form and manner as may be prescribed, before the expiry of six months from the last day of the quarter in which such supply was received. (3) Subject to the provisions of sub-section (10), a registered person may claim refund of any unutilised input tax credit at the end of any tax period: Provided that no refund of unutilised input tax credit shall be allowed in cases other than- (i) zero-rated supplies made without payment of tax; (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fuily exempt supplies), except supplies of goods or services or both as may be notified by the Government on the recommendations of the Council: Provided further that no refund of unutilised input tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty: Provided also that no refund of input tax credit shall be allowed, ifthe supplier of goods or services or both claims refund of the integrated tax paid on such supplies. (4) The application shall be accompanied by- (a) such documentary evidence as may be prescribed to establish that a refund is due to the applicant; and -58- (b) such documentary or other evidence (including the documents referred to in section 33) as the applicant may furnish to establish that the amount of tax and interest, if any, paid on such tax or any other amount paid in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such tax and interest had not been passed on to any other person: Provided that where the amount claimed as refund is less than two lakh rupees, it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration, based on the documentary orother evidences available with him, certifying that the incidence of such tax and interest had not been passed on to any other person. (5) If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited tothe Fund referred to in section 57. (6) Notwithstanding anything contained insub-section (5), the proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent. of the total amount so claimed, excluding the amount of input tax credit provisionally accepted, insuch manner and subject to such conditions, limitations and safeguards as may be prescribed and thereafter make an order under sub-section (5)for final settlement of the refund claim after due verification of documents furnished by the applicant. (7) The proper officer shall issue the order under sub-section (5) within sixty days from the date of receipt of application complete in all respects. (8) Notwithstanding anything contained insub-section (5), the refundable amount shall, instead ofbeingcredited tothe Fund, be paid to the applicant, if such amount is relatable to - (a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies; (b) refund of unutilised input tax credit under sub- section (3); (c) refund oftax paid on a supply which isnot provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued; -59- (d) refund of tax in pursuance of section 77; (e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; or \ (f) the tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify. (9) Notwithstanding anything tothe contrary contained inany judgment, decree, order or direction of the Appellate Tribunal or any court or in any other provisions ofthis Act or the rules made thereunder or in any other law for the time being in force, no refund shall be made except in accordance with the provisions of sub-section (8). ' (10) Where any refund is due under sub-section (3) to a registered person who has defaulted in furnishing any return orwho isrequired to pay any tax, interest or penalty, which has not been stayed by any court, Tribunal or Appellate Authority bythe specified date, the proper officer may- (a) withhold payment of refund due until the said person has furnished the return or paid the tax, interest or penalty, as the case may be; (b) deduct from the refund due, any tax, interest, penalty, fee or any other amount which the taxable person is liable to pay but which remains unpaid under this Act or under the existing law. Explanation.-For the purposes of this sub-section, the expression "specified date" shall mean the last date for filing an appeal under this Act. (11) Where an order giving rise to a refund isthe subject matter of an appeal or further proceedings or where any other proceedings under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely to adversely affect the revenue inthe said appeal or other proceedings on account of malfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may determine. (12) Where a refund is withheld under sub-section (11), the taxable person shall, notwithstanding anything contained in section 56, be entitled to interest at such rate not exceeding six per cent. as may be notified on the recommendations of the Council, if as a result of the appeal or further proceedings he becomes entitled to refund. -60- (b) such documentary or other evidence (including the documents referred to in section 33) as the applicant may furnish to establish that the amount of tax and interest, if any, paid on such tax or any other amount paid in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such tax and interest had not been passed on to any other person: Provided that where the amount claimed as refund is less than two lakh rupees, it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration, based on the documentary orother evidences available with him, certifying that the incidence of such tax and interest had not been passed on to any other person. (5) If, on receipt of any such application, the proper officer is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited tothe Fund referred to in section 57. (6) Notwithstanding anything contained insub-section (5), the proper officer may, in the case of any claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent. of the total amount so claimed, excluding the amount of input tax credit provisionally accepted, insuch manner and subject to such conditions, limitations and safeguards as may be prescribed and thereafter make an order under sub-section (5)for final settlement of the refund claim after due verification of documents furnished by the applicant. (7) The proper officer shall issue the order under sub-section (5) within sixty days from the date of receipt of application complete in all respects. (8) Notwithstanding anything contained insub-section (5), the refundable amount shall, instead ofbeingcredited tothe Fund, be paid to the applicant, if such amount is relatable to - (a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies; (b) refund of unutilised input tax credit under sub- section (3); (c) refund oftax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued; -59- (13) Notwithstanding anything to the contrary contained inthis section, the amount of advance tax deposited by acasual taxable person or a non-resident taxable person under sub-section (2) of section 27, shall not be refunded unless such person has, in respect of the entire period for which the certificate of registration granted to him had remained inforce, furnished allthe returns required under section 39. (14) Notwithstanding anything contained in this section, no refund under sub-section (5) or sub-section (6) shall be paid to an applicant, if the amount is less than one thousand rupees. Explanation.-For the purposes of this section,- (1) "refund" includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised input tax credit as provided under sub- section (3).

(2) "relevant date" means - (a)inthe case of goods exported out of India where a refund of tax paid is available in respect of goods themselves or, as the case may be, the inputs or input services used in such goods,- (i) ifthe goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India; or (ii) ifthe goods are exported by land, the date on which such goods pass the frontier; or (iii) if the goods are exported by post, the date of des- patch of goods by the Post Office concerned to a place outside India; (b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished; (c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of- (i) receipt of payment in convertible foreign exchange, where the supply of services had been completed prior to the receipt of such payment; or (ii) issue of invoice, where payment for the services had been received in advance prior to the date of issue of the invoice; (d) in case where the tax becomes refundable as a consequence of judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction; -61- (e) inthe case of refund of unutilised input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises; (f) in the case where tax is paid provisionally under this Act orthe rules made thereunder, the date ofadjustment of tax after the final assessment thereof; (g) in the case of a person, other than the supplier, the date of receipt of goods or services or both by such person; and (h) in any other case, the date of payment of tax. 55. The Government may, on the recommendations of the Refund in Council, by notification, specify any specialized agency of certain the United Nations Organization orany Multilateral Financial cases. Institution and Organization notified under the United 46 of 1947. Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries and any other person or class of persons as may be specified in this behalf, who shall, subject to such conditions and restrictions as may be prescribed, be entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them. 56. Ifany tax ordered to be refunded under sub-section (5) of Interest on section 54 to any applicant is not refunded within sixty days delayed from the date of receipt of application under sub-section refunds. (1) of that section, interest at such rate not exceeding six per cent. as may be specified in the notification issued by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax: Provided that where any claim of refund arises from an order passed by an adjudicating authority or Appellate Authority or Appellate Tribunal orcourt which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding nine per cent. as may be notified bythe Government on the recommendations ofthe Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application till the date of refund. Exp/anation.-For the purposes of this section, where any order of refund is made by an Appellate Authority, Appellate Tribunal or any court against an order of the proper officer under sub-section (5) of section 54, the order passed by the Appellate Authority, Appellate Tribunal orby the court shall be deemed to be an order passed under the said sub-section (5). -62- 57. The Government shall constitute a Fund, to be called the Consumer Consumer Welfare Fund and there shall be credited to the Welfare Fund,- Fund. (a) the amount referred to in sub-section (5) of section 54; (b) any income from investment of the amount credited to the Fund; and (c) such other monies received by it, insuch manner as may be prescribed. 58. (1) All sums credited to the Fund shall be utilised by the Utilisation of Government for the welfare of the consumers in such Fund. manner as may be prescribed. (2) The Government or the authority specified by it shall maintain proper and separate account and other relevant records in relation to the Fund and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor General of India. CHAPTER- XII ASSESSMENT 59. Every registered person shall self-assess the taxes payable Self- under this Act and furnish a return for each tax period as assessment. specified under section 39. 60. (1) Subject to the provisions of sub-section (2), where the Provisional taxable person is unable to determine the value of goods assessment. or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him. (2) The payment oftax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may befinally assessed and the amount oftax provisionally assessed. (3) The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment: -63- (2) Where the registered person furnishes avalid return within thirty days of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn butthe liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 shall continue. 63. Notwithstanding anything to the contrary contained in Assessment section 73 or section 74,where a taxable person fails to of obtain registration even though liable to do so or whose unregistered registration has been cancelled under sub-section (2) of persons. section 29 but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgement for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 for furnishing ofthe annual return for the financial year towhich the tax not paid relates: Provided that no such assessment order shall be passed without giving the person an opportunity of being heard. 64. (1) The proper officer may, on any evidence showing a tax Summary liability of a person coming to his notice, with the previous assessment permission of Additional Commissioner or Joint incertain Commissioner, proceed to assess the tax liability of such special person to protect the interest of revenue and issue an cases. assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue: Provided that where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount due under this section. (2) On an application made by the taxable person within thirty days from the date of receipt of order passed under sub- section (1) or on his own motion, if the Additional Commissioner or Joint Commissioner considers that such order iserroneous, he may withdraw such order and follow the procedure laid down in section 73 or section 74. CHAPTER XIII AUDIT 65. (1) The Commissioner or any officer authorised by him, by Audit by tax way of a general or a specific order, may undertake audit authorities. of any registered person for such period, at such frequency and in such manner as may be prescribed. 2 The officers referred to in sub-section (1) may conduct audit atthe place of business of the registered person or in • eir office. -65- (3) The registered person shall be informed by way of a notice not less than fifteen working days prior to the conduct of audit in such manner as may be prescribed. (4) The audit under sub-section (1) shall be completed within a period of three months from the date of commencement of the audit: Provided that where the Commissioner issatisfied that audit in respect of such registered person cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six months. Explanation.-For the purposes of this sub-section, the expression "commencement ofaudit" shall mean the date on which the records and other documents, called for by the tax authorities, are made available bythe registered person orthe actual institution of audit at the place of business, whichever is later. (5) During the course of audit, the authorised officer may require the registered person,- (i) to afford him the necessary facility to verify the books of account or other documents as he may require; (ii) to furnish such information as he may require and render assistance for timely completion of the audit. (6) On conclusion ofaudit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings. (7) Where the audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refundeo, or input tax credit wrongly availed or utilised, the properofficer mayinitiateaction undersection 73 orsection74. 66. (1) Ifat any stage of scrutiny, inquiry, investigation or any other Special proceedings before him, any officer not below the tank of audit. Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner. (2) The chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified: Provided that the Assistant Commissioner may, on an application made to him in this behalf by the registered person or -66- the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety days. (3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the registered person have been audited under any other provisions ofthis Act or any other law for the time being in force. (4) The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit under sub-section (1) which is proposed to be used in any proceedings against him under this Act or the rules made thereunder. (5) The expenses ofthe examination and audit of records under sub-section (1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and such determination shall be final. (6) Where the special audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under section 73 or section74. CHAPTER XIV INSPECTION, SEARCH, SEIZURE AND ARREST 67. (1) Where the proper officer, not below the rank of Joint Power of Commissioner, has reasons to believe that-. inspection, search and (a) a taxable person has suppressed any transaction relating seizure. to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or (b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, e may authorise inwriting any other officer of State tax to inspect any places of business of the taxable person or the persons e gaged inthe business of transporting goods or the owner or the operator of warehouse or godown or any other place. (2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe -67- that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of State tax to search and seize or may himself search and seize such goods, documents or books or things: Provided that where it is not practicable to seize any such goods, the proper officer,or any officer authorised by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deai with the goods except with the previous permission of such officer: Provided further that the documents or books or things so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act. (3)The documents, books or things referred to in sub-section (2) or any other documents, books or things produced by ataxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made thereunder, shall be returned to such person within a period not exceeding thirty days of the issue ofthe said notice. (4) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any premises or to break open any almirah, electronic devices, box, receptacle in which any goods, accounts, registers or documents of the person are suspected to be concealed, where access to such premises, almirah, electronic devices, box or receptacle is denied. (5) The person from whose custody any documents are seized under sub-section (2) shall be entitled to make copies thereof or take extracts there from in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation. (6) The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed oron payment of applicable tax, interest and penalty payable, as the case may be. (7) Where any goods are seized under sub-section .(2)and no notice in respect thereof is given within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized: Provided that the period of six months may, on sufficient cause being shown, be extended by the proper officer for afurther period not exceeding six months. -68- (8) The Government may, having regard to the perishable or hazardous nature of any goods, depreciation inthe value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be after its seizure under sub-section (2), be disposed of bythe proper officer in such manner as may be prescribed. (9) Where any goods, being goods specified under sub- section (8), have been seized pya proper officer, or any officer authorised by him under sub-section (2), he shall prepare an inventory of such goods in such manner as may be prescribed. 2c;~974. (10) The provisions of the Code of Criminal Procedure, 1973, relating to search and seizure, shall, so far as may be, apply to search and seizure under this section subject to the modification that sub-section (5) of section 165 of the said Code shall have effect as iffor the word "Magistrate", wherever it occurs, the word "Commissioner" were substituted. (11) Where the proper officer has reasons to believe that any person has evaded or isattempting to evade the payment of any tax, .he may, for reasons to be recorded in writing, seize the accounts, registers or documents of such person produced before him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceedings under this Act or the rules made thereunder for prosecution. (12) The Commissioner or an officer authorised by him may cause purchase of any goods or services or both by any person authorised by him from the business premises of any taxable person, to check the issue of tax invoices or bills of supply by such taxable person, and on return of goods so purchased by such officer, such taxable person or any person in charge of the business premises shall refund the amount so paid towards the goods after cancelling any tax invoice or bill of supply issued earlier. 68. ( ) The Government may require the person in charge of a Inspection of conveyance carrying any consignment of goods of value goods in exceeding such amount as may be specified to carry with movement. im such documents and such devices as may be prescribed. ede ails of documents required to be carried under sub- sectio (1) shall be validated in such manner as may be ~~esc"; ed. . ~e-ea. y conveyance referred to in sub-section (1) is -:;:;-:e:::ec by • e proper officer at any place, he may -=-=_ -e --e ce-son in charge of the said conveyance to -69- produce the documents prescribed under the said sub- section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods. 69. (1) Where the Commissioner has reasons to believe that a Power to arrest. person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 132which is punishable under clause (i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, by order, authorise any officer of State tax to arrest such person. (2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of section 132, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a Magistrate within twenty four hours. 2 of 1974. (3) Subject to the provisions of the Code of Criminal Procedure, 1973,- (a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bailor in default of bail, forwarded to the custody of the Magistrate; (b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner or the Assistant Commissioner shall, for the purpose of releasing an arrested person on bailor otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station 5 of 1908 70. (1) The proper officer under this Act shall have power to Power to summon any person whose attendance he considers summon necessary either to give evidence orto produce adocument persons to or any other thing in any inquiry in the same manner, as give provided in the case of a civil court under the provisions of evidence the Code of Civil Procedure, 1908. and produce documents. (2) Every such inquiry referred to in sub-section (1) shall be 45 of 1860. deemed to be a "judicial proceedings" within the meaning of section 193 and section 228 of the Indian Penal Code. 71. (1) Any officer under this Act, authorised by the proper officer Access to not below the rank of Joint Commissioner, shall have business access to any place of business of a registered person to premises. inspect books of account, documents, computers, computer programs, computer software whether installed in a computer or otherwise and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue. -70- (2) Every person in charge of place referred to in sub-section (1) shall, on demand, make available to the officer authorised under sub-section (1) or the audit party deputed by the proper officer or a cost accountant or chartered accountant nominated under section 66- (i) such records as prepared or maintained by the registered person and declared to the proper officer in such manner as may be prescribed; (ii) trial balance or its equivalent; (iii) statements of annual financial accounts, duly audited, wherever required; -- .2 3. (iv) cost audit report, if any, under section 148 of the Companies Act, 2013; • -: -96 . (v) the income-tax audit report, ifany, under section 44AB of the Income-tax Act, 1961; and (vi) any other relevant record, for the scrutiny by the officer or audit party or the chartered accountant or cost accountant within a period not exceeding fifteen working days from the day when such demand is made, or such further period as may be allowed by the said officer or the audit party or the chartered accountant or cost accountant. 72. (1)All officers of Police, Railways, Customs, and those officers Officers to engaged inthe collection of land revenue, including village assist proper officers, officers of central tax and officers of the Union officers. territory tax shall assist the proper officers in the implementation of this Act. (2) The Government may, by notification, empower and require any other class of officers to assist the proper officers in the implementation of this Act when called upon to do so by the Commissioner. CHAPTER XV DEMANDS AND RECOVERY 73. (1) Where it appears to the proper officer that any tax has not Determination been paid or short paid or erroneously refunded, or where of tax not paid input tax credit has been wrongly availed or utilised for any or short paid reason, other than the reason of fraud or any wilful or erroneously misstatement or suppression offacts to evade tax, he shall refunded or serve notice on the person chargeable with tax which has input tax credit not been so paid or which has been so short paid or to wrongly availed whom the refund has erroneously been made, or who has or utilised for wrongly availed or utilised input tax credit, requiring him to any reason show cause as to why he should not pay the amount other than specified in the notice along with interest payable thereon fraud or any under section 50 and apenalty leviable under the provisions wilful mis- of this Act or the rules made thereunder. statement or. suppression of facts. -71- (2) The proper officer shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order. (3) Where a notice has been issued for any period under sub- section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax. (4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub- section (1) are the same as are mentioned in the earlier notice. (5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment. (6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder. (7) Where the proper officer is of the opinion that the amount paid under sub-section (5)falls short ofthe amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable. (8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded. (9) The proper officer shall, after considering the representation, ifany, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an order. (1O)The proper officer shall issue the order under sub-section (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund. -72- (11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax. 74. (1) Where it appears to the proper officer that any tax has not Determination been paid or short paid or erroneously refunded or where of tax not paid input tax credit has been wrongly availed or utilised by or short paid reason of fraud, or any wilful misstatement or suppression or of facts to evade tax, he shall serve notice on the person erroneously chargeable with tax which has not been so paid or which refunded or has been so short paid or to whom the refund has input tax erroneously been made, or who has wrongly availed or credit wrongly utilised input tax credit, requiring him to show cause as to availed or why he should not pay the amount specified in the notice utilised by along with interest payable thereon under section 50 and a reason of penalty equivalent to the tax specified in the notice. fraud or any wilful mis- statement or suppression of facts. (2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order. (3) Where a notice has been issued for any period under sub- section (1), the proper officer may serve a statement, containing the details of tax not paid or short paidor erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable with tax. (4) The service of statement under sub-section (3) shall be deemed to beservice of notice under sub-section (1) of section 73, subject to the condition that the grounds relied upon in the said statement, except the ground of fraud, or any wilful-misstatement or suppression of facts to evade tax, for periods other than those covered under sub-section (1) are the same as are mentioned in the earlier notice. (5) The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of such tax orthe tax as ascertained by the proper officer and inform the proper officer inwriting of such payment. (6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder. -73- (7) Where the proper officer is of the opinion that the amount paid under sub-section (5)falls short ofthe amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable. (8) Where any person chargeable with tax under sub-section (1)pays the said tax along with interest payable under section 50 and a penalty equivalent to twenty five per cent. of such tax within thirty days of issue of the notice, all proceedings in respect of the said notice shall be deemed to be concluded. (9) The proper officer shall, after considering the representation, ifany, made by the person chargeable with tax, determine the amount oftax, interest and penalty due from such person and issue an order. (10)The proper officer shall issue the order under sub-section (9) within a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous refund. (11)Where any person served with an order issued under sub- section (9) pays the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent. ofsuch tax within thirty days ofcommunication ofthe order, all proceedings in respect of the said notice shall be deemed to be concluded. Explanation 1.- Forthe purposes of section 73 and this section, - (i) the expression "all proceedings inrespect ofthe said notice" shall not include proceedings under section 132; (ii) where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under section 73 or section 74, the proceedings against all the persons liable to pay penalty under sections122, 125, 129 and 130 are deemed to be concluded. Explanation 2.-For the purposes of this Act, the expression "suppression" shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act orthe rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer. 75. (1) Where the service of notice or issuance of order is stayed General by an order of a court or Appellate Tribunal, the period of provisions such stay shall be excluded in computing the period relating to specified in Sub-sections (2) and (10) of section 73 or sub- determination sections (2) and (10) of section 74, as the case may be. oftax. -74- (2) Where any Appellate Authority or Appellate Tribunal or court concludes that the notice issued under sub-section (1) of section 74 is not sustainable for the reason that the charges of fraud or any wilful misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable by such person, deeming as ifthe notice were issued under sub-section (1) of section 73. (3) Where any order is required to be issued in pursuance of the direction ofthe Appellate Authority orAppellate Tribunal or acourt, such order shall be issued within two years from the date of communication of the said direction. (4) An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person. (5) The proper officer shall, ifsufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be recorded inwriting: Provided that no such adjournment shall be granted for more than three times to a person during the proceedings. (6) The proper officer, in his order, shall set out the relevant facts and the basis of his decision. (7) The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice. (8) Where the Appellate Authority orAppellate Tribunal or court modifies the amount oftax determined bythe proper officer, the amount of interest and penalty shall stand modified accordingly, taking into account the amount of tax so modified. (9) The interest on the tax short paid or not paid shall be payable whether or not specified in the order determining the tax liability. (10)The adjudication proceedings shall be deemed to be concluded, ifthe order is not issued within three years as provided for in sub-section (10) of section 73 or within five years as provided for in sub-section (10) of section 74. (11) An issue on which the Appellate Authority orthe Appellate Tribunal or the High Court has given its decision which is prejudlcial to the interest of revenue in some other proceedings and an appeal to the Appellate Tribunal or the High Court or the Supreme Court against such decision ofthe Appellate Authority orthe Appellate Tribunal -75- or the High Court is pending, the period spent between the date of the decision of the Appellate Authority and that of the Appellate Tribunal or the date of decision of the Appellate Tribunal and that of the High Court or the date of the decision of the High Court and that of the Supreme Court shall be excluded incomputing the period referred to in sub-section (10) of section 73 or sub-section (10) of section 74 where proceedings are initiated by way of issue of a show cause notice under the said sections. (12) Notwithstanding anything contained in section 73 or section74, where any amount of self-assessed tax in accordance with a return furnished under section 39 remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered under the provisions of section 79. (13) Where any penalty is imposed under section 73 or section 74, no penalty for the same act or omission shall be imposed on the same person under any other provision of this Act. 76. (1) Notwithstanding anything to the contrary contained in any Tax collected order or direction of any Appellate Authority or Appellate but not paid to Tribunal or court or inany other provisions of this Act or the Government. rules made thereunder or any other law for the time being in force, every person who has collected from any other person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not. (2) Where any amount is required to be paid tothe Government under sub-section (1), and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause as to why the said amount as specified in the notice, should not be paid by him to the Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act. (3) The proper officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person and thereupon such person shall pay the amount so determined. (4) The person referred to in sub-section (1) shall in addition to paying the amount referred to in sub-section (1) or sub- section (3) also be liable to pay interest thereon at the rate specified under section 50 from the date such amount was collected by him to the date such amount is paid by him to the Government. -76- (5) An opportunity of hearing shall be granted where a request is received in writing from the person to whom the notice was issued to show cause. (6) The proper officer shall issue an order within one year from the date of issue of the notice. (7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal, the period ofsuch stay shall be excluded in computing the period of one year. (8) The proper officer, in his order, shall set out the relevant facts and the basis of his decision. (9) The amount paid to the Government under sub-section (1) .orsub-section (3) shall be adjusted against the tax payable, ifany, bythe person in relation to the supplies referred to in sub-section (1). (10) Where any surplus is left after the adjustment under sub- section (9), the amount of such surplus shall either be credited to the Fund or refunded to the person who has borne the incidence of such amount. (11) The person who has borne the incidence of the amount, may apply for the refund of the same in accordance with the provisions of section 54. 77. (1) A registered person who has paid the central tax and State Tax tax on atransaction considered by him to be an intra-State wrongfully supply, but which is subsequently held to be an inter-State collected and supply, shall be refunded the amount of taxes so paid in paid to such manner and subject to such conditions as may be Central prescribed. Government (2) A registered person who has paid integrated tax on a or State Government. transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, . shall not be required to pay any interest on the amount of State tax payable. 78. Any amount payable by a taxable person in pursuance of Initiation of an order passed under this Act shall be paid by such person recovery within a period of three months from the date of service of proceedings. such order failing which recovery proceedings shall be initiated: Provided that where the proper officer considers itexpedient in the interest of revenue, he may, for reasons to be recorded in writing, require the said taxable person to make such payment within such period less than a period of three months as may be specified by him. 79. (1)Where any amount payable by a person to the Government Recovery of under any of the provisions of this Act or the rules made tax. thereunder is not paid, the proper officer shall proceed to recover the amount by one or more ofthe following modes, namely:- -77- (a) the proper officer may deduct or may require any other specified officer to deduct the amount so payable from any money owing to such person which may be under the control of the proper officer or such other specified officer; (b) the proper officer may recover or may require any other specified officer to recover the amount so payable by detaining and selling any goods belonging to such person which are under the control of the proper officer or such other specified officer; (c) (i) the proper officer may, by a notice in writing, require any other person from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the Government either forthwith upon the money becoming due or being held, or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount; (ii) every person to whom the notice is issued under sub- clause (i) shall be bound to comply with such notice, and in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose ofany entry, endorsement orthe like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary; (iii) in case the person to whom a notice under sub-clause (i) has been issued, fails to make the payment in pursuance thereof to the Government, he shall be deemed to be a defaulter in respect of the amount specified inthe notice and all the consequences of this Act or the rules made thereunder shall follow; (iv) the officer issuing a notice under sub-clause (i) may, at any time, amend or revoke such notice or extend the time for making any payment inpursuance ofthe notice; (v) any person making any payment in compliance with a notice issued under sub-clause (i) shall be deemed to have made the payment under the authority of the person in default and such payment being credited to the Government shall be deemed to constitute a good and sufficient discharge of the liability of such person to the person in default to the extent of the amount specified in the receipt; (vi) any person discharging any liability to the person in default after service on him ofthe notice issued under -78- sub-clause (i) shall be personally liable to the Government to the extent ofthe liability discharged or to the extent of the liability of the person in default for tax, interest and penalty, whichever is less; (vii) where a person on whom a notice is served under sub-clause (i) proves to the satisfaction of the officer issuing the notice that the money demanded or any part thereof was not due to the person in default or that he did not hold any money for or on account of the person indefault, atthe time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the said person or be held for or on account of such person, nothing contained in this section shall be deemed to require the person on whom the notice has been served to paytothe Government any such money orpartthereof; (d) the proper officer may, in accordance with the rules to be made in this behalf, distrain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress, may cause the said property to be sold and with the proceeds ofsuch sale, may satisfy the amount payable and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such person; (e) the proper officer may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person owns any property or resides or carries on his business or to any officer authorised by the Government and the said Collector or the said officer, on receipt of such certificate, shall proceed to recover from such person the amount specified thereunder as ifitwere an arrear of land revenue; 2 of 1974. (f) Notwithstanding anything contained inthe Code ofCriminal Procedure, 1973, the proper officer may file an application to the appropriate Magistrate and such Magistrate shall proceed to recover from such person the amount specified thereunder as if it were a fine imposed by him. (2) Where the terms of any bond or other instrument executed under this Act or any rules or regulations made thereunder provide that any amount due under such instrument may be recovered in the manner laid down in sub-section (1), the amount may, without prejudice to any other mode of recovery, be recovered in accordance with the provisions of that sub-section. (3) Where any amount of tax, interest or penalty is payable by a person to the Government under any of the provisions of -79- this Act or the rules made thereunder and which remains unpaid, the proper officer of central tax, during the course of recovery of said tax arrears, may recover the amount from the said person as if it were an arrear of central tax and credit the amount so recovered to the account of the Government. (4) Where the amount recovered under sub-section (3) is less than the amount due to the Central Government and State Government, the amount to be credited to the account of the respective Governments shall be in proportion to the amount due to each such Government. 80. On an application filed by a taxable person, the Payment of Commissioner may, for reasons to be recorded in writing, tax and othe extend the time for payment or allow payment of any amount in amount due under this Act, other than the amount due as instalments. per the liability self-assessed inany return, by such person in monthly instalments not exceeding twenty four, subject to payment of interest under section 50and subject to such conditions and limitations as may be prescribed: Provided that where there isdefault in payment of anyone instalment on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery. 81. Where a person, after any amount has become due from Transfer of him, creates a charge on or parts with the property property to belonging to him or in his possession by way of sale, be void in mortgage, exchange, or any other mode of transfer certain whatsoever of any of his properties in favour of any other cases. person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said person: Provided that, such charge or transfer shall not be void if it ismade for adequate consideration, ingood faith and without notice of the pendency of such proceedings under this Act or without notice of such tax or other sum payable by the said person, or with the previous permission of the proper officer. 82. Notwithstanding anything to the contrary contained in any Tax to be fir law for the time being in force, save as otherwise provided charge on 31 of 2016 inthe Insolvency and Bankruptcy Code, 2016, any amount property. payable by ataxable person orany other person on account of tax, interest or penalty which he is liable to pay to the Government shall be afirst charge on the property of such taxable person or such person. -80- 83. (1) Where during the pendency of any proceedings under Provisional section62 or section 63 or section.

64 or section 67 or attachment section 73 or section 74,the Commissioner isofthe opinion to protect that for the purpose of protecting the interest of the revenue in Government revenue, it is necessary so to do, he may, by certain order inwriting attach provisionally any property, including cases. bank account, belonging to the 'taxable person in such manner as may be prescribed. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1). 84. Where any notice of demand in respect of any tax, penalty, Continuation interest or any other amount payable under this Act, and (hereaftertn this section referred to as "Government dues"), validation of isserved upon any taxable person or any other person and certain any appeal or revision application is filed or any other recovery proceedings is initiated in respect of such Government proceedings. dues, then- (a) where such Government dues are enhanced in such appeal, revision or other proceedings, the Commissioner shall serve upon the taxable person or any other person another notice of demand in respect of the amount by which such Government dues are enhanced and any recovery proceedings in relation to such Government dues as are covered by the notice of demand served upon him before the disposal of such appeal, revision or other proceedings may, without the service of any fresh notice of demand, be continued from the stage at which such proceedings stood immediately before such disposal; (b),where such Government dues are reduced insuch appeal, revision or in other proceedings- (i) itshall not be necessary for the Commissioner to serve upon the taxable person a fresh notice of demand; (ii) the Commissioner shalf give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings is pending; (iii) any recovery proceedings initiated on the basis of the demand served upon him prior to the disposal of such appeal, revision or other proceedings may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal. -81- CHAPTER XVI LIABILITY TO PAY IN CERTAIN CASES 85. (1) Where a taxable person, liable to pay tax under this Act, Liability in transfers his business inwhole or inpart, by sale, gift, lease, case of leave and license, hire or inany other manner whatsoever, transfer of the taxable person and the person to whom the business business. isso transferred shall, jointly and severally, be liable wholly or to the extent of such transfer, to pay the tax, interest or any penalty due from the taxable person up to the time of such transfer, whether such tax, interest or penalty has been determined before such transfer, but has remained unpaid or is determined thereafter. (2) Where the transferee of a business referred to in sub- section (1) carries on such business either in his own name or in some other name, he shall be liable to pay tax on the supply of goods or services or both effected by him with effect from the date of such transfer and shall, if he is a registered person under this Act, apply within the prescribed time for amendment of his certificate of registration. 86. Where an agent supplies or receives any taxable goods Liability of on behalf of his principal, such agent and his principal shall, agent and jointly and severally, be liable to pay the tax payable on principal. such goods under this Act. 87. (1) When two or more companies are amalgamated or merged Liability in in pursuance of an order of court or ofTribunal or otherwise case of and the order is to take effect from a date earlier to the arnalqarnati date of the order and any two or more of such companies or merger .:: have supplied or received any goods or services or both to companies. or from each other during the period commencing on the date from which the order takes effect till the date of the order, then such transactions of supply and receipt shall be included in the turnover of supply or receipt of the respective companies and they shall be liable to pay tax accordingly. (2) Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or more companies shall be treated as distinct companies for the period up to the date of the said order and the registration certificates of the said companies shall be cancelled with effect from • the date of the said order. 310f2016 88. (1) When any company is being wound up whether under the Liability in orders of a court or Tribunal or otherwise, every person case of appointed as receiver ofany assets ofacompany (hereafter company i in this section referred to as the "liquidator"), shall, within liquidation. thirty days after his appointment, give intimation of his appointment to the Commissioner. (2) The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the -82- liquidator within three months from the date on which he receives intimation ofthe appointment ofthe liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any tax, interest or penalty which is then, or is likely thereafter to become, payable by the company. (3) When any private company is wound up and any tax, interest or penalty determined under this Act on the company for any period, whether before or inthe course of or after its liquidation, cannot be recovered, then every person who was a director of such company at any time during the period for which the tax was due shall, jointly and severally, be liable for the payment of such tax, interest or penalty, unless he proves to the satisfaction of the Commissioner that such non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. 2013. 89. (1) Notwithstanding anything contained inthe Companies Act, Liability of 2013, where any tax, interest or penalty due from a private directors of company in respect of any supply of goods or services or private both for any period cannot be recovered, then, every person company. who was a director of the private company during such period shall, jointly and severally, be liable for the payment of such tax, interest or penalty unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. (2) Where a private company is converted into a public company and the tax, interest or penalty in respect of any supply of goods or services or both for any period during which such company was a private company cannot be recovered before such conversion, then, nothing contained in sub-section (1) shall apply to any person who was a director of such private company in relation to any tax, interest or penalty in respect of such supply of goods or services or both of such private company: Provided that nothing contained in this sub-section shall apply to any personal penalty imposed on such director. 90. Notwithstanding any contract to the contrary and any other Liability of law for the time being in force, where any firm is liable to partners of pay any tax, interest or penalty under this Act, the firm and firm to pay each of the partners of the firm shall, jointly and severally, tax. be liable for such payment: Provided that where any partner retires from the firm, he or the firm, shall intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf inwriting and such partner shall be liable to pay tax, interest or penalty due upto the date of his retirement whether determined or not, on that date: -83- r Provided further that if no such intimation is given within one month from the date of retirement, the liability of such partner under the first proviso shall continue until the date on which such intimation is received by the Commissioner. 91. Where the business in respect of which any tax, interest Liabili1 or penalty is payable under this Act is carried on by any guardi guardian, trustee or agent ofa minor or other incapacitated trustee person on behalf of and for the benefit of such minor or other incapacitated person, the tax, interest or penalty shall be levied upon and recoverable from such guardian, trustee or agent in like manner and to the same extent as itwould be determined and recoverable from any such minor or other incapacitated person, as if he were a major or capacitated person and as if he were conducting the business himself, and all the provisions of this Act or the rules made thereunder shall apply accordingly. 92. Where the estate or any portion of the estate of a taxable Liabilit' person owning a business in respect of which any tax, Court ( interest or penalty is payable under this Act is under the Wards control of the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager (including any person, whatever be his designation, who in fact manages the business) appointed by or under any order of a court, the tax, interest or penalty shall be levied upon and be recoverable from such Court of Wards, Administrator General, Official Trustee, -receiver or manager in like mannerand to the same extent as itwould be determined and be recoverable from the taxable person as if he were conducting the business himself, and all the provisions of this Act or the rules made thereunder shall apply accordingly. 310f2016 93. (1) Save as otherwise provided in the Insolvency and Special Bankruptcy Code, 2016,where a person, liable to pay tax, provisic interest or penalty under this Act, dies, then- regardir (a) ifa business carried on bythe person iscontinued after liability i his death by his legal representative or any other person, tax, inte such legal representative or other person, shall be liable to or pena pay tax, interest or penalty due from such person under certain this Act; and cases. (b) if the business carried on by the person is discontinued, whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty due from such person under this Act, whether such tax, interest or penalty has been determined before his death but has remained unpaid or isdetermined after his death. -84- / (2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where ataxable person, liableto 2016 - J: pay tax, interest or penalty under this Act, is a Hindu Undivided Family or an association of persons and the property of the Hindu Undivided Family orthe association ofpersons ispartitioned amongst thevarious members or groups of members, then, each member or group of members shall, jointly and severally, be liable to pay the tax, interest or penalty due from the taxable person under this Act upto the time of the partition whether such tax, penalty or interest has been determined before partition buthasremainedunpaidorisdeterminedafterthepartition. 3 0 2016 (3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where ataxable person, liableto paytax, interest orpenaltyunderthis Act, isafirm,andthe firm is dissolved, then, every person who was a partner shall,jointly and severally, beliableto paythetax, interest orpenalty duefrom thefirm underthis Act uptothe timeof dissolution whether suchtax, interest orpenalty has been determinedbeforethedissolution,buthasremainedunpaid or is determined after dissolution. (4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a taxable person liable to paytax, interest orpenalty underthis Act,- (a)istheguardian ofaward onwhose behalfthe business iscarried on bythe guardian; or (b) is a trustee who carries on the business under a trust forabeneficiary, then, if the guardianship or trust is terminated, the ward or the beneficiary shall be liable to pay the tax, interest or penalty due from the taxable person uptothe time of the termination of the guardianship or trust, whether such tax, interest or penalty has been determined before the termination of guardianship or trust but has remained unpaid or isdetermined thereafter. 94. (1) Where a taxable person is a firm or an association of Liabilityin . persons or a Hindu Undivided Family and such firm, other cases.' association or family has discontinued buslness=, . (a) the tax, interest or penalty payable under this Act by such firm,association or family upto the date of such discontinuance may be determlned as if no such , discontinuance hadtaken place; and (b) every person who, at the time of such discontinuance, was a partner of such firm, or a member of such association or family, shall, notwithstanding such discontinuance, jointly and severally, be liable for the .payment of tax and interest determined and penalty imposed and payable by such firm, association or -85- 'T family, whether such tax and interest has been determined or penalty imposed prior to or after such discontinuance and subject as aforesaid, the provisions of this Act shall, so far as may be, apply as if every 'such person or partner or member were himself a taxable person. (2) Where a change has occurred in the constitution of a firm or an association of persons, the partners of the firm or members of association, as it existed before and as it exists after the reconstitution, shall, without prejudice to the provisions of section 90, jointly and severally, be liable to pay tax, interest or penalty due from such firm or association for any period before its reconstitution. (3) The provisions of sub-section (1) shall, so far as may be, apply where the taxable person, being a firm or association of persons isdissolved orwhere the taxable person, being a Hindu Undivided Family, has effected partition with respect to the business carried on by it and accordingly references in that sub-section to discontinuance shall be construed as reference to dissolution or to partition. Explanation.-For the purposes of this Chapter,- (i) a "Limited Liability Partnership" formed and registered 6of 2009. under the provisions ofthe Limited Liability Partnership Act, 2008 shall also be considered as a firm; (ii) "court" means the District Court, High Court or Supreme Court. CHAPTER XVII ADVANCE RULING 95. In this Chapter, unless the context otherwise requires,- Defini (a) "advance ruling" means a decision provided by the _Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; (b) ."Appellate Authority" means the Appellate Authority for Advance Ruling constituted under section 99; (c)"applicanf' means any person registered ordesirous of obtaining registration under this Act; (d) "application" means an application made to the Authority under sub-section (1) of section 97; (e) "Authority" means the Authority for Advance Ruling, constituted under section 96. -86- 96. (1) The Government shall, by notification, constitute an Constitution Authority to be known as the Sikkim Authority for of Authority Advance Ruling: for Advance Ruling. Provided that the Government may, on the recommendation of the Council, notify any Authority located in another State to act as the Authority for the State. (2) The Authority shall consist of- (i) one member from amongst the officers of central tax; and (ii) one member from amongst the officers of State tax,to be appointed by the Central Government and the State Government respectively. (3) The qualifications, the method of appointment of the members and the terms and conditions of their services shall be such as may be prescribed. 97. (1) An applicant desirous of obtaining an advance ruling under Application this Chapter may make an application in such form and for advance manner and accompanied by such fee as may be ruling. prescribed, stating the question on which the advance ruling is sought. (2) The question on which the advance ruling is sought under this Act, shall be in respect of, - (a) classification of any goods or services or both; (b) applicability ofa notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 98. (1) On receipt of an application, the Authority shall cause a Procedure copy thereof to be forwarded to the concerned officer and, on receipt of if necessary, call upon him to furnish the relevant records: application. Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the said concerned officer. -87- (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application: Provided that the Authority shall not admit the application where the question raised in the application is already pending or cfecided in any proceedings in the case of an applicant under any of the provisions of this Act: Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant: Provided also that where the application is rejected, the reasons for such rejection shall be specified in the order. (3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the concerned officer. (4) Where an application is admitted under sub-section (2), the Authority shall, after examining such further material asmay be placed before it by the applicant or obtained by the Authority and after providing anopportunity ofbeing heard to the applicant or his authorised representative as well as to the concerned officer or his authorised representative, ..pronounce its advance ruling on the question specified in the application. (5) Where the members of the Authority differ on any question on which the advance ruling is sought, they shall state the point or points on which they differ and make a reference to the Appellate Authority for hearing and decision on such question. (6) The Authority shall pronounce its advance ruling in writing within ninety days from the date of receipt of application. (7) A copy of the advance ruling pronounced by the Authority duly signed by the members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer and the jurisdictional officer after such pronouncement. 99. (1) The Government shall, by notification, constitute an Constitui Authority to be known as Sikkim Appellate Authority ofAppell for Advance Ruling for Goods and Services Tax for Authority hearing appeals .against the advance ruling Advance pronounced by the Advance Ruling Authority Ruling. consisting of- . (i) the Chief Commissioner of central tax as designated by the Board; and (ii) the Commissioner of State tax. -88- Provided that the Government may, on the recommendations of the Council, notify any Appellate Authority located inanother State or Union territory toact as theAppellate Authority for the State. 100. (1) The concerned officer, the jurisdictional officer or an Appeal to the applicant aggrieved by any advance ruling pronounced Appellate under sub-section (4) of section 98, may appeal to the Authority. Appellate Authority. (2) Every appeal under this section shall befiled within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the concerned officer, the jurisdictional officer and the applicant: Provided that the Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, allow it ~ to be presented within a further period not exceeding thirty days. (3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed. 101. (1)The Appellate Authority may, after giving the parties to the Orders of appeal or reference an opportunity of being heard, pass Appellate such order as itthinks fit, confirming or modifying the ruling Authority. appealed against or referred to. (2) The order referred to in sub-section (1) shall be passed within a period of ninety days from the date of filing of the appeal under section 100 or a reference under sub-section (5) of section 98. (3) Where the members of the Appellate Authority differ on any point or points referred to in appeal or reference, it shall be deemed that no advance ruling can be issued in respect of the question under the appeal or reference. (4) A copy ofthe advance ruling pronounced bythe Appellate Authority duly signed bythe Members and certified insuch manner as may be prescribed shall be sent to the applicant, the concerned officer, the jurisdictional officer and to the Authority after such pronouncement. 102. .The Authority or the Appellate Authority may amend any Rectification order passed by it under section 98 or section 101, so as of advance to rectify any error apparent on the face of the record, if ruling. such error is noticed by the Authority or the Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer, or the applicant or the appellant within a period of six months from the date of the order: Provided that no rectification which has the effect of . enhancing the tax liability or reducing the amount of admissible input tax credit shall be made unless the applicant or the appellant has been given an opportunity of being heard. -89- --------. - - 103. (1) The advance ruling pronounced by the Authority or the Applicability Appellate Authority under this Chapter shall bebinding only- of advance ruling. (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. (2) The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 104. (1) Where the Authority or the Appellate Authority finds that Advance advance ruling pronounced by it under sub-section (4) of ruling to be section 980r under sub-section (1) of section 101has been void in certain obtained by the applicant or the appellant by fraud or circumstances. suppression of material facts or misrepresentation offacts, itmay, by order, declare such ruling to be voidab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant or the appellant as if such advance ruling had never been made: Provided that no order shall be passed under this sub- section unless an opportunity of being heard has been given to the applicant or the appellant. Exp/anation.-The period beginning with the date of such advance ruling and ending with the date of order under this sub- section shall be excluded while computing the period specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74. (2) A copy of the order made under sub-section (1) shall be sent to the applicant, the concerned officer and the jurisdictional officer. 105. (1) The Authority or the Appellate Authority shall, for the Powers of purpose of exercising its powers regarding - Authority and Appellate (a) discovery and inspection; Authority. (b) enforcing the attendance of any person and examining him on oath; 5 of 1908. (c) issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908. 2 of 1974. (2) The Authority orthe Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal 450f1860. Procedure, 1973, and every proceeding before the Authority or the Appellate Authority shall be deemed to be ajudicial proceedings within the meaning of sections 193 and 228, and for the purpose ofsection 196ofthe Indian Penal Code. -90- 106. The Authority or the Appellate Authority shall, subject to Procedure of the provisions of this Chapter, have power to regulate its Authorityand own procedure. Appellate Authority. CHAPTER-XVIII APPEALS AND REVISION 107.(1) Any person aggrieved by any decision or order passed Appeals to under this Act or the Central Goods and Services Tax Act Appellate by an adjudicating authority may appeal to such Appellate Authority. Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person. (2) The Commissioner may, on his own motion, or upon request from the Commissioner of central tax, call for and examine the record of any proceeding in which an adjudicating authority has passed any decision or order under this Act orthe Central Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out ofthe said decision or order as may be specified by the Commissioner in his order. (3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application tothe Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order ofthe adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application. (4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month. (5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed. (6) No appeal shall be filed under sub-section (1), unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed. -91- -, (7) Where the appellant has paidthe amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed. (8) The Appellate Authority shall give an opportunity to the appellant of being heard. (9) The Appellate Authority may, ifsufficient cause isshown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing: Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal. (10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified inthe grounds of appeal, if itissatisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable. (11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as itthinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order: Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order: Provided further that where the Appellate Authority isofthe opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is giv~n notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or section 74. (12) The order ofthe Appellate Authority disposing ofthe appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision. (13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed: Provided that where the issuance of order is stayed by an order ofacourt orTribunal, the period ofsuch stay shall be excluded in computing the period of one year. 14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority. -92- (15) A copy of the order passed by the Appellate Authority shall also be sent to the Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of central taxor an authority designated by him in this behalf. (16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties. 108. (1) Subject to the provisions of section 121 and any rules Powers of made thereunder, the Revisional Authority may, on hisown Revisional motion, or upon information received by him or on request Authority . .from the Commissioner of centraitax, call for and examine the record of any proceedings, and if he considers that any decision or order passed under this Act or under the Central Goods and Services Tax Act by any officer subordinate to him is erroneous inso far as itis prejudicial to the interest of revenue and is illegal or improper or has not taken into account certain material facts, whether available atthe time of issuance ofthe said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as hethinks just and proper, including enhancing or modifying or annulling the said decision or order. (2) The Revisional Authority shall not exercise any power under sub-section (1), if- (a) the order has been subject to an appeal under section 107 or section 112 or section 117 or section 118; or (b) the period specified under sub-section (2) of section 107 has not yet expired or more than three years have expired after the passing ofthe decision or order sought to be revised; or (c) the order has already been taken for revision under this section at an earlier stage; or (d) the order has been passed in exercise of the powers under sub-section (1): Provided that the Revisional Authority may pass an order under sub-section (1) on any point which has not been raised and decided in an appeal referred to in clause (a) of sub-section (2), before the expiry of a period of one year from the date ofthe order in such appeal or before the expiry of a period of three years referred to in clause (b) of that sub-section, whichever is later. (3) Every order passed in revision under sub-section (1) shall, subject to the provisions of section 113 or section 117 or section 118, be final and binding on the parties. -93- .. :.~- .•.....~. (4) Ifthe said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision insome other proceedings and an appeal to the High Court orthe Supreme Court against such decision ofthe Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date ofthe decision ofthe High Court or the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section. (5) Where the issuance of an order under sub-section (1) is stayed by the order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2). (6) For the purposes of this section, the term,- (i) "record" shall include all records relating to any proceedings under this Act available at the time of examination by the Revisional Authority; (ii) "decision" shall include intimation given by any officer lower in rank than the Revisional Authority. 109. (1) Subject to the provisions of this Chapter, the Goods Appellate and Services Tax Tribunal constituted under the Tribunal Central Goods and Services Tax Act shall be the and Appellate Tribunal for hearing appeals against the Benches orders passed by the Appellate Authority or the thereof. Revisional Authority under this Act. (2) The constitution and jurisdiction of the State Bench and the Area Benches located in the State shall be in accordance with the provisions of section 109 of the Central Goods and Services Tax Act or the rules made thereunder. 110. Thequalifications, appointment, salary and allowances, President terms of office, resignation and removal of the and President and Members of the State Bench and Area Members Of Benches shall be in accordance with the provisions of Appellate section 110of the Central Goods and Services TaxAct. Tribunal, their qualificatio appointme conditions of service, etc. -94- 5of 1908. 111. (1) The Appellate Tribunal shall not, while disposing of any Procedure proceedings before itor an appeal before it, be bound by before the procedure laid down in the Code of Civil Procedure, Appellate 1908, but shall be guided bythe principles of natural justice Tribunal. and subject to the other provisions of this Act and the rules made thereunder, the Appellate Tribunal shall have power to regulate its own procedure. 5of 1908. (2) The Appellate Tribunal shall, for the purposes ofdischarging its functions under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908,.while trying asuit in respect ofthe following matters, namely:- (a) summoning and enforcing the attendance ofany person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of 1of 1872. the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document from any office; (e) issuing commissions for the examination of witnesses or documents; (f) dismissing a representation for default or deciding it ex parte; (g) setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and (h) any other matter which may be prescribed. (3) Any order made bythe Appellate Tribunal may be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein, and itshall be lawful for the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,- (a) in the case of an order against a company, the registered office of the company is situated; or (b) in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain. 50f1860. (4) All proceedings before the Appellate Tribunal shall be '. deemed to be judicial proceedings within the meaning of 20f 1974. sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code, and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI ofthe Code of Criminal Procedure, 1973. -95- (7) An appeal to the Appellate Tribunal shall be insuch form, verified in such manner and shall be accompanied by such fee, as may be prescribed. (8) No appeal shall be filed under sub-section (1), unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and (b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of the section 107, arising from the said order, in relation to which the appeal has been filed. (9) Where the appellant has paid the amount as per sub- section (8), the recovery proceedings for the balance amount shall be deemed to be stayed till the disposal of the appeal. (10) Every application made before the Appellate Tribunal,- (a) in an appeal for rectification of error or for any other purpose; or (b) for restoration of an appeal or an application, shall be accompanied by such fees as may be prescribed. 113. (1) The Appellate Tribunal may, after giving the parties to the Orders of appeal an opportunity of being heard, pass such orders Appellate thereon as itthinks 'fit, confirming, modifying or annulling Tribunal. the decision or order appealed against or may refer the case back to the Appellate Authority, or the Revisional Authority or to the original adjudicating authority, with such directions as itmay think fit, for afresh adjudication or decision after taking additional evidence, ifnecessary. (2) The Appellate Tribunal may, ifsufficient cause isshown, at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing: Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal. (3) The Appellate Tribunal may amend any order passed by it under sub-section (1) so as to rectify any error apparent on the face of the record, ifsuch error is noticed by iton its own accord, or isbrought to its notice bythe Commissioner or the Commissioner of central tax or the other party to the appeal within a period of three months from the date of the order: Provided that no amendment which has the effect of enhancing an assessment or reducing a refund or input tax credit or otherwise increasing the liability of the other party, shall be made under this sub-section, unless the party has been given an opportunity of being heard. -97- (7) An appeal to the Appellate Tribunal shall be insuch form, verified in such manner and shall be accompanied by such fee, as may be prescribed. (8) No appeal shall be filed under sub-section (1), unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and (b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of the section 107, arising from the said order, in relation to which the appeal has been filed. (9) Where the appellant has paid the amount as per sub- section (8), the recovery proceedings for the balance amount shall be deemed to be stayed till the disposal of the appeal. (10) Every application made before the Appellate Tribunal,- (a) in an appeal for rectification of error or for any other purpose; or (b) for restoration of an appeal or an application, shall be accompanied by such fees as may be prescribed. 113. (1) The Appellate Tribunal may, after giving the parties to the Orders of appeal an opportunity of being heard, pass such orders Appellate thereon as itthinks fit, confirming, modifying or annulling Tribunal. the decision or order appealed against or may refer the case back to the Appellate Authority, or the Revisional Authority or to the original adjudicating authority, with such directions as itmay think fit, for afresh adjudication or decision after taking additional evidence, ifnecessary. (2) The Appellate Tribunal may, ifsufficient cause isshown, at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing: Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal. (3) The Appellate Tribunal may amend any order passed by it under sub-section (1) so as to rectify any error apparent on the face of the record, ifsuch error is noticed by iton its own accord, or is brought to its notice bythe Commissioner or the Commissioner of central tax or the other party to the appeal within a period of three months from the date of the order: Provided that no amendment which has the effect of enhancing an assessment or reducing a refund or input tax credit or otherwise increasing the liability of the other party, shall be made under this sub-section, unless the party has been given an opportunity of being heard. -97- (4) The Appellate Tribunal shall, as far as possible, hear and decide every appeal within a period of one year from the date on which it isfiled. (5) The Appellate Tribunal shall send a copy of every order passed under this section to the Appellate Authority or the Revisional Authority, or the original adjudicating authority, as the case may be, the appellant and the Commissioner or the jurisdictional Commissioner of central tax. (6) Save as provided in section 117 or section 118, orders passed bythe Appellate Tribunal on an appeal shall befinal and binding on the parties. 114. The State President shall exercise such financial and Financial administrative powers over the State Bench and Area and Benches of the Appellate Tribunal in a State, as may administratr. be prescribed: powers of State Provided that the State President shall have the President. authority to delegate such of his financial and administrative powers as he may think fit to any other Member or any officer of the State Bench or Area Benches, subject to the condition that such Member or officer shall, while exercising such delegated powers, continue to act under the direction, control and supervision of the State President. 115. Where an amount paid by the appellant under sub-section Interest or. (6) of section 107 or sub-section (8) of section 112 is refund of required to be refunded consequent to any order of the amount pa Appellate Authority or of the Appellate Tribunal, interest at for the rate specified under section 56 shall be payable in admissio _ respect of such refund from the date of payment of the appeal. amount till the date of refund of such amount. 116. (1) Any person who is entitled or required to appear before Appeara - an officer appointed under this Act, or the Appellate by Authority orthe Appellate Tribunal inconnection with any authorisec proceedings under this Act, may, otherwise than when represernar required under this Act to appear personally for examination on oath or affirmation, subject to the other 'provisions of this section, appear by an authorised representative. (2) For the purposes ofthis Act, the expression "authorised representative" shall mean a person authorised by the person referred to insub-section (1)to appear on his behalf, being- (a) his relative or regular employee; or (b) an advocate who is entitled to practice in any court in India, and who has not been debarred from practicing before any court in India; or -98- (c) any chartered accountant, a cost accountant or a company secretary, who holds a certificate of practice and who has not been debarred from practice; or (d) a retired officer of the Commercial Tax Department of any State Government or Union territory or ofthe Board who, during his service under the Government, had worked inapost not below the rank than that ofaGroup- BGazetted officer for aperiod of not less than two years: Provided that such officer shall not be entitled to appear before any proceedings under this Act for a period of one year from the date of his retirement or resignation; or (e) any person who has been authorised to act as a goods and services tax practitioner on behalf ofthe concerned registered person. (3) No person, - (a) who has been dismissed or removed from Government service; or (b) who is convicted of an offence connected with any proceedings under this Act, the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, or under the existing law or under any of the Acts passed by a State Legislature dealing with the imposition oftaxes on sale of goods or supply of goods or services or both; or (c) who is found guilty of misconduct by the prescribed authority; (d) who has been adjudged as an insolvent, shall be qualified to represent any person under sub-section (1)- (i) for alltimes incase of persons referred to inclauses (a),(b) and (c); and (ii) for the period during which the insolvency continues in the case of a person referred to in clause (d). (4) Any person who has been disqualified under the provisions of the Central Goods and Services Tax Act or the Goods and Services Tax Act ofany other State orthe Union Territory Goods and Services Tax Act shall be deemed to be disqualified under this Act. 117. (1) Any person aggrieved by any order passed by the State Appeal to Bench or Area Benches of the Appellate Tribunal may High Court. file an appeal to the High Court and the High Court may admit such appeal, ifit is satisfied that the case involves a substantial question of law. -99- (2) An appeal under sub-section (1) shall be filed within a period of one hundred and eighty days from the date on which the order appealed against is received by the aggrieved person and it shall be in such form, verified in such manner as may be prescribed: Provided that the High Court may entertain an appeal after the expiry ofthe said period ifitissatisfied that there was sufficient cause for not filing it within such period. (3) Where the High Court issatisfied that asubstantial question of law isinvolved inany case, itshall formulate that question and the appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub-section shall be deemed to take away or abridge the power ofthe court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, ifit is satisfied that the case involves such question. (4) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.

(5) The High Court may determine any issue which- (a) has not been determined by the State Bench or Area Benches; or (b) has been wrongly determined by the State Bench or Area Benches, by reason ofadecision on such question of law as herein referred to in sub-section (3). (6) Where an appeal has been filed before the High Court, it shall be heard by a Bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or ofthe majority, ifany, of such Judges. (7)Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall, then, be heard upon that point only, by one or more of the other Judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it. (8) Where the High Court delivers a judgment in an appeal filed before it under this section, effect shall be given to such judgment by either side on the basis of a certified copy of the judgment. -100- ~ =1908 (9) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908, relating to appeals to the High Court shall, as far as may be, apply inthe case of appeals under this section. 118. (1) An appeal shall lie to the Supreme Court- Appeal to Supreme (a) from any order passed by the National Bench or Regional Court. Benches of the Appellate Tribunal; or (b) from any judgment or order passed by the High Court in an appeal made under section 117 in any case which, on its own motion or on an application made by or on behalf of the party aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit one for appeal to the Supreme Court. 908 (2)The provisions ofthe Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section as they apply inthe case of appeals from decrees of a High Court. (3)Where the judgment ofthe High Court isvaried or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section 117 in the case of a judgment of the High Court. 119. Notwithstanding that an appeal has been preferred to the Sums due to High Court or the Supreme Court, sums due to the be paid Government as a result of an order passed by the National notwithstanding or Regional Benches of the Appellate Tribunal under sub- appeal etc. section (1) of section 113 or an order passed by the State Bench orArea Benches ofthe Appellate Tribunal under sub- section (1) of section 113 or an order passed by the High Court under section 117, as the case may be, shall be payable in accordance with the order so passed. 120. (1) The Commissioner may, on the recommendations ofthe Appeal not to Council, from time to time, issue orders or instructions be filed in or directions fixing such monetary limits, as he may deem certain fit, for the purposes of regulating the filing of appeal or cases. application by the officer of the State tax under the provisions of this Chapter. (2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the officer of the State tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, itshall not preclude such officer ofthe State tax from filing appeal or application in any other case jnvolving the same or similar issues or questions of law. (3) Notwithstanding the fact that no appeal or application has been filed by the officer of the State tax pursuant to the orders or instructions or directions issued under sub- section (1), no person, being a party in appeal or -101- application shall contend that the officer of the State tax has acquiesced in the decision on the disputed issue by not filing an appeal or application. (4) The Appellate Tribunal or court hearing such appeal or application shall have regard to the circumstances under which appeal or application was not filed by the officer of the State tax in pursuance of the orders or instructions or directions issued under sub-section (1). 121. Notwithstanding anything to the contrary in any provisions Non ofthis Act, no appeal shall lieagainst any decision taken or appeala order passed by an officer of State tax if such decision decisior taken or order passed relates to anyone or more of the and ord following matters, namely:- (a) an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer; or (b) an order pertaining to the seizure or retention of books of account, register and other documents; or (c) an order sanctioning prosecution under this Act; or (d) an order passed under section 80. CHAPTER XIX OFFENCES AND PENALTIES 122. (1) Where a taxable person who- Penalty (i) supplies any goods or services or both without issue certain of any invoice or issues an incorrect or false invoice offence with regard to any such supply; (ii) issues any invoice or bill without supply of goods or services or both in violation of the provisions ofthis Act or the rules made thereunder; (iii) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the Government beyond a period ofthree months from the date on which such payment becomes due; (v) fails to deduct the tax inaccordance with the provisions of SUb-section (1) of section 51, or deducts an amount which is less than the amount required to be deducted under the said sub-section, or where he fails to pay to the Government under. sub-section (2) thereof, the amount deducted as tax; (vi) fails to collect tax in accordance with the provisions of sub-section (1) of section 52, or collects an amount -102- which is less than the amount required to be collected under the said sub-section or where he fails to pay to the Government the amount collected astax under sub- section (3) of section 52; (vii) takes or utilizes input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act or the rules made thereunder; (viii) fraudulently obtains refund of tax under this Act; (ix) takes or distributes input tax credit in contravention of section 20, or the rules made thereunder; (x) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information or return with an intention to evade payment of tax due under this Act; (xi) is liable to be registered under this Act but fails to obtain registration; (xii) furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently; (xiii) obstructs or prevents any officer in discharge of his duties under this Act; (xiv) transports any taxable goods without the cover of documents as may be specified in this behalf; (xv) suppresses histurnover leading to evasion oftax under this Act; (xvi) fails to keep, maintain or retain books of account and other documents in accordance with the provisions of this Act or the rules made thereunder; (xvii) fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or the rules made thereunder or furnishes false information or documents during any proceedings under this Act; . . . (xviii) supplies, transports or stores any goods which he has reasons to believe are liable to confiscation under this "Act; (xix) issues any invoice ordocument by using the registration number of another registered person; (xx) tampers with, or destroys any material evidence or documents; (xxi) disposes off or tampers with any goods that have been detained, seized, or attached under this Act, he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under -103- section 51 or short deducted or deducted but not paid to the Government ortax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher. (2) Any registered person who supplies any goods or services or both on which any tax has not been paid or short-paid or erroneously refunded, orwhere the input tax credit has been wrongly availed or utilized,- (a) for any reason, other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees or ten per cent. of the tax due from such person, whichever is higher; (b) for reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty equal to ten thousand rupees or the tax due from such person, whichever is higher. (3) Any person who- (a) aids or abets any of the offences specified in clauses (i) to (xxi) of sub-section (1); (b) acquires possession of, or inany way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with any goods whichhe knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; (c) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions ofthis Act or the rules made thereunder; (d) fails to appear before the officer of State tax, when issued with asummon for appearance to give evidence or produce a document in an inquiry; (e) fails to issue invoice inaccordance with the provisions of this Act or the rules made thereunder or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to twenty five thousand rupees. 123. Ifa person who is required to furnish an information return Penaltyfc under section 150 fails to do so within the period specified failure to in the notice issued under sub-section (3) thereof, the furnish proper officer may direct, that such person shall be liable informatic to pay a penalty of one hundred rupees for each day ofthe return. period during which the failure to furnishsuch return continues: -104- Provided that the penalty imposed under this section shall not exceed five thousand rupees. 124. If any person required to furnish any information or return Fine for under section 151,- failure to (a) without reasonable cause fails to furnish such furnish information or return as may be required under that statistics. section, or (b) wilfully furnishes or causes to furnish any information or return which he knows to be false, heshall be punishable with afine which may extend toten thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues subject to a maximum limit of twenty five thousand rupees. 125. Any person, who contravenes any of the provisions of this General Act or any rules made thereunder for which no penalty is penalty. separately provided for inthis Act, shall be liable to a penalty which may extend to twenty five thousand rupees. 126. (1)No officer under this Act shall impose any penalty for minor General breaches of tax regulations or procedural requirements disciplines and in particular, any omission or mistake in related to documentation which is easily rectifiable and made penalty. without fraudulent intent or gross negligence. Exp/anation.-For the purpose of this sub-section,- (a) a breach shall be considered a 'minor breach' if the amount of tax involved is less than five thousand rupees; (b) an omission or mistake in documentation shall be considered to be easily rectifiable ifthe same isan error apparent on the face of record. (2) The penalty imposed under this Act shall depend on the facts and circumstances of each case and shall commensurate with the degree and severity of the breach. (3) No penalty shall be imposed on any person without giving him an opportunity of being heard. (4) The officer under this Act shall while imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature ofthe breach and the applicable law, regulation or procedure under which the amount of penalty for the breach has been specified. (5) When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact as a mitigating factor when quantifying a penalty for that person. -105- .' (6) The provisions of this section shall not apply in such cases where the penalty specified under this Act iseither a fixed sum or expressed as a fixed percentage. 127. Where the proper officer is of the view that a person is Power to liable to a penalty and the same is not covered under any impose proceedings under section 62 or section 63 or section 64 penalty in or section 73 or section 74 or section 129 or section 130, certain cases. he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person. 128. The Government may, by notification, waive in part or full, Power to any penalty referred to in section 1220r section 123 or waive penalty section 125 or any late fee referred to in section 47 for .orfee or both such class of taxpayers and under such mitigating circumstances as may be specified therein on the recommendations of the Council. 129. (1) Notwithstanding anything contained in this Act, where Detention, any person transports any goods or stores any goods seizure and while they are intransit incontravention ofthe provisions release of ofthis Act or the rules made thereunder, all such goods goods and and conveyance used as a means of transport for conveyances carrying the said goods and documents relating to such in transit. goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,- (a) on payment of the applicable tax and penalty equal toone hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment ofthe applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty; (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)in such form and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. -106- (3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment oftax and penalty under clause (a) or clause (b) or clause (c). (4) No tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard. (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded. (6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130: Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer. 130. (1) Notwithstanding anything contained in this Act, if any Confiscation person - of goods or conveyances and levy of penalty. (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he isliable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (v) uses any conveyance as a means of transport for carriage of goods incontravention ofthe provisions of this Act or the rules made thereunder unless the owner ofthe conveyance proves that itwas so used without the knowledge or connivance of the owner himself, his agent, ifany, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122. -107- (2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fit: Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon: Provided further that the aggregate ofsuch fine and penalty leviable shall not be less than the amount of penalty leviable under sub-section (1) of section 129: Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon. (3) Where any fine in lieu of confiscation of goods or conveyance is imposed under SUb-section (2), the owner of such goods or conveyance or the person referred to in sub-section (1),shall, inaddition, be liable toany tax, penalty and charges payable in respect of such goods or conveyance. (4) No order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard. (5) Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government. (6) The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession. (7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government. 131. Without prejudice to the provisions contained in the Code Confiscation 2 of 1974. of Criminal Procedure, 1973, no confiscation made or or penalty penalty imposed under the provisions ofthis Act orthe rules not to made thereunder shall prevent the infliction of any other interfere with punishment to which the person affected thereby is liable other under the provisions of this Act or under any other law for punishments. the time being in force. 132. (1) Whoever commits any of the following offences, Punishment namely:- for certain offences (a) supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act -108- orthe rules made thereunder, with the intention to evade tax; (b) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax; (c) avails input tax credit using such invoice or bill referred to in clause (b); (d) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (e) evades tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not covered under clauses (a) to (d); (f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act; (g) obstructs or prevents any officer in the discharge of his duties under this Act; (h) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder; (i) receives or is in any way concerned with the supply of, or inany other manner deals with any supply ofservices which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; (j) tampers with or destroys any material evidence or documents; (k) fails to supply any information which he is required to supply under this Act or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; or (I) attempts to commit, or abets the commission of any of the offences mentioned in clauses (a) to (k) of this section, shall be punishable- (i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine; -109- (ii) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised orthe amount of refund wrongly taken exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for aterm which may extend to three years and with fine; (iii) in the case of any other offence where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with imprisonment for a term which may extend to one year and with fine; (iv) in cases where he commits or abets the commission of an offence specified in clause (f) or clause (g) or clause (j), he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both. (2) Where any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for aterm which may extend to five years and with fine. (3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and sub-section (2) shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, be for a term not less than six months. (4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable. (5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) and punishable under clause (i) ofthat sub-section shall be cognizable and non-bailable. (6) A person shall not be prosecuted for any offence under this section except with the previous sanction of the Commissioner. Exp/anation.- For the purposes of this section, the term "tax" shall include the amount oftax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly taken under the provisions of this Act, the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and cess levied under the Goods and Services Tax (Compensation to States) Act. -110- 133. (1) Where any person engaged in connection with the Liability ot collection of statistics under section 151 or compilation officers and or computerisation thereof or if any officer of State tax certain other having access to information specified under sub-section persons. (1) of section 150, or ifany person engaged inconnection with the provision of service on the common portal or the agent ofcommon portal, wilfully discloses any information or the contents of any return furnished under this Act or rules made thereunder otherwise than inexecution of his duties under the said sections or for the purposes of prosecution for an offence under this Act or under any other Act forthe time being inforce, heshall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to twenty five thousand rupees, or with both. (2) Any person - (a) who isaGovernment servant shall not be prosecuted for any offence under this section except with the previous sanction of the Government; (b) who is not a Government servant shall not be prosecuted for any offence under this section except with the previous sanction of the Commissioner. 134. No court shall take cognizance of any offence punishable Cognizance under this Act or the ruies made thereunder except with of offences. the previous sanction of the Commissioner, and no court inferior to that of a Magistrate of the First Class, shall try any such offence. 135. In any prosecution for an offence under this Act which Presumption requires aculpable mental state on tho part ofthe accused, of culpable the court shall presume the existence of such mental state mental but it shall be a defence for the accused to prove the fact state. that he had no such mental state with respect to the act charged as an offence in that prosecution. Explanation.-For the purposes of this section,- (i) the expression "culpable mental state" includes .intention, motive, knowledge of a fact, and belief in, or reason to believe, a fact; (ii) a fact is said to be proved only when the court believes itto exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability. 136. A statement made and signed by a person on appearance Relevancy of in response to any summons issued under section 70 statements during the course of any inquiry or proceedings under this under certain Act shall be relevant, for the purpose of proving, in any circumstances. prosecution for an offence under this Act, the truth of the .facts which it contains,- -111- (a) when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the court considers unreasonable; or (b) when the person who made the statement is examined as a witness in the case before the court and the court is of the opinion that, having regard to the circumstances of the case, the statement should be admitted in evidence in the interest of justice. 137. (1) Where an offence committed by a person under this Act Offences is a company, every person who, at the time the offence Companies was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty ofthe offence and shall be liable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer ofthe company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence under this Act has been committed by a taxable person being a partnership firm or a Limited Liability Partnership or a Hindu Undivided Family or a trust, the partner or karta or managing trustee shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly and the provisions ofSUb-section (2)shall mutatis mutandis apply to such persons. (4) Nothing contained in this section shall render any such person liable to any punishment provided inthis Act, ifhe proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. Expianation.-For the purposes of this section,- (i) "company" means a body corporate and includes a firm or other association of individuals; and (ii) "director", in relation to a firm, means a partner in the firm. 2of 1974. 138. (1) Any offence under this Act may, either before or after the Compou institution of prosecution, be compounded by the of offence Commissioner on payment, by the person accused of -112- the offence, to the Central Government or the State Government, as the case may be, of such compounding amount in such manner as may be prescribed: Provided that nothing contained inthis section shall apply to- (a) a person who has been allowed to compound once in respect of any of the offences specified in clauses(a) to (f)of sub-section (1) of section 132 and the offences specified in clause (I) which are relatable to offences specified in clauses (a) to (f) of the said sub-section; (b) a person who has been allowed to compound once in respect of any offence, other than those in clause (a), under this Act or under the provisions of any State Goods and Services Tax Act orthe Central Goods and Services Tax Act or the Union Territory Goods and Services Tax Actor the Integrated Goods and Services Tax Act in respect of supplies of value exceeding one crore rupees; (c) a person who has been accused of committing an offence under this Act which is also an offence under any other law for the time being in force; (d) a person who has been convicted for an offence under this Act by a court; (e) a person who has been accused of committing an offence specified in clause (g) or clause (j)or clause(k) of sub-section (1) of section 132; and (f) any other class of persons or offences as may be prescribed: Provided further that any compounding allowed under the provisions of this section shall not affect the proceedings, if any, instituted under any other law: Provided also that compounding shall be allowed only after making payment of tax, interest and penalty involved in such offences. (2) The amount for compounding of offences under this section shall be such as may be prescribed, subject to the minimum amount not being less than ten thousand rupees or fifty per cent. of the tax involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent. of the tax, whichever is higher. (3) On payment of such compounding amount as may be determined by the Commissioner, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated. -113- CHAPTER XX TRANSITIONAL PROVISIONS 139. (1) On and from the appointed day, every person registered Migration of under any of the existing laws and having a valid existing Permanent Account Number shall be issued a certificate taxpayers. of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled ifthe conditions so prescribed are not complied with. (2) The final certificate of registration shall be granted insuch form and manner and subject to such conditions as may be prescribed. (3) The certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section 24. 140. (1) A registered person, other than a person opting to pay Transitional tax under section 10, shall be entitled to take, in his arrangemen ~ electronic credit ledger, credit of the amount of Value for input tax Added Tax, and Entry Tax, if any, carried forward in credit. the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit in the following circumstances, namely: - (i) where the said amount of credit is not admissible as input tax credit under this Act; or (ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or Provided further that so much of the said credit as is 74of 1956 attributable to any claim related to section 3, SUb-section (3) ofsection 5, section 6, section 6Aor SUb-section (8) ofsection sotthe Central Sales TaxAct, 1956which is not substantiated in the manner, and within the period, prescribed in rule 12of the Central Sales Tax(Registration and Turnover) Rules, 1957 shall not be eligible to be credited to the electronic credit ledger: Provided also that an amount equivalent to the credit specified in the second proviso shall be refunded under the existing law when the said claims are substantiated in the manner prescribed in rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957. -114- (2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed input tax credit in respect of capital goods, not carried forward in a return, furnished under the existinglaw by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit unless the said credit was admissible as input tax credit under the existing law and is also admissible as input tax credit under this Act. Explanation.--For the purposes of this section, the expression "unavailed input tax credit" means the amount that remains after subtracting the amount of input tax credit already availed in respect of capital goods bythe taxable person under the existing law from the aggregate amount of input taxcredit to which r ! the said person was entitled in respect of the said capital goods under the existing law. (3) A registered person, who was not liable to be registered under the existing law or who was engaged in the sale of exempted goods or tax free goods, by whatever name called, or goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State under .the existing law but which are liable to tax under this Act or where the person was entitled to the credit of input tax at the time of sale of goods, if any, shall be entitled to take, in his electronic credit ledger, credit of the value added tax and entry tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held instock on the appointed day subject tothe following conditions namely:- (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said registered person is eligible for input tax credit on such inputs under this Act; (iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of such inputs; and (iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day: .Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of tax in -115- ,f. , respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed. (4) A registered person, who was engaged in the sale of taxable goods as well as exempted goods or tax free goods, by whatever name called, under the existing law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger,- (a) the amount of credit of the value added tax and entry tax, if any, carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and (b) the amount of credit of the value added tax and entry tax, if any, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or tax free goods, by whatever name called, in accordance with the provisions of SUb-section (3). (5) A registered person shall be entitled to take, in his electronic credit ledger, credit ofvalue added tax and entry tax, if any, in respect of inputs received on or after the appointed day but the tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other tax paying document of the same was recorded inthe books of account of such person within a period of thirty days from the appointed day: Provided that the period of thirty days may, on sufficient cause being shown, be extended bythe Commissioner for afurther period not exceeding thirty days: Provided further that the said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this sub-section. (6) A registered person, who was either paying tax at a fixed rate or paying afixed amount inlieu ofthe tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of value added tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods. held in stock on the appointed day subject to the following conditions, namely:- (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said registered person is not paying tax under section 10; (iii) the said registered person is eligible for input tax credit on such inputs under this Act; -116- (iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of inputs; and (v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (7) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as may be prescribed. 141. (1) Where any inputs received at aplace of business had Transitional been despatched as such or despatched after being provisions partially processed to a job worker for further relating to processing, testing, repair, reconditioning or any other job work. purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended bythe Commissioner for afurther period not exceeding two months: Provided further that if such inputs are not returned within theperiod specified inthis sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142. (2) Where any semi-finished goods had been despatched from the placeofbusiness to any other premises for carrying out certain manufacturing processes in accordance with the provisions of existing law prior to the appointed day and such goods (hereafter in this sub-section referred to as "the said goods") are returned to the saidplace on or after the appointed day, notax shall be payable ifthe said goods, after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended bythe Commissioner for afurther period not exceeding two months: Provided further that ifthe said goods are not returned within a period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods tothe premises ofany registered person for the purpose of supplying there from on payment of tax in India or without payment of tax for exports within the period specified in this sub- section. -117- (3) Where any goods had been despatched from the place of business without payment of tax for carrying out tests or any other process, to any other premises, whether registered or not, in accordance with the provisions of existing law prior to the appointed day and such goods, are returned to the said place of business on or after the a~~cl(\t.ed da'1, (\C t.a)(shall be ~a'1able it t.hesaid Q,oods, after undergoing tests or any other process, are returned to such place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended bythe Commissioner for afurther period not exceeding two months: Provided further that ifthe said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods from the said other premises on payment of tax in India orwithout payment oftax for exports within the period specified in this sub-section. (4) The tax under sub-sections (1), (2) and (3) shall not be payable, only ifthe person despatching the goods and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf ofthe said person on the appointed day in such form and manner and within such time as may be prescribed. 142. (1) Where any goods on which tax, if any, had been paid Miscellaneous under the existing law at the time of sale thereof, not transitional being earlier than six months prior to the appointed day, provisions. are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the tax paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer: Provided that ifthe said goods are returned by a registered person, the return of such goods shall be deemed to be a supply. (2) (a) where, in pursuance of a contract entered into prior tothe appointee day, the price ofany goods isrevised upwards on or after the appointed day, the registered person who had sold such goods shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act, such supplementary invoice or -118- debit note shall be deemed to have been issued in respect of an outward supply made under this Act (b) where, in pursuance of a contract entered into prior tothe appointed day, the price ofany goods isrevised downwards on or after the appointed day, the registered person who had sold such goods may issue to the recipient a credit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such credit note shall be deemed to have been issued in respect of an outward supply made under this Act: Provided that the registered person shall be allowed to reduce his tax liability on account of issue of the credit note only ifthe recipient of the credit note has reduced his input tax credit corresponding to such reduction of tax liability. (3) Every claim for refund filed by any person before, on or after the appointed day for refund of any amount of input tax credit, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be refunded to him in cash in accordance with the provisions of the said law: Provided that where any claim for refund of the amount of input tax credit isfully or partially rejected, the amount so rejected shall lapse: Provided further that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this Act. (4) Every claim for refund filed after the appointed day for refund ofany tax paid under the existing law inrespect ofthe goods exported before orafter the appointed day, shall bedisposed of in accordance with the provisions of the existing law: Provided that where any claim for refund of input taxcredit is fully or partially rejected, the amount so rejected shall lapse: Provided further that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this Act. (5) Notwithstanding anything to the contrary contained in this Act, any amount of input tax credit reversed prior to the appointed day shall not be admissible as input tax credit under this Act. (6) (a) every proceeding of appeal, revision, review or reference relating to a claim for input tax credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of the existing law, and any amount of credit -119- found to be admissible to the claimant shall be refunded to him incash inaccordance with the provisions ofthe existing law, and the amount rejected, ifany, shall not be admissible as input tax credit under this Act:

Provided that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this Act; (b) every proceeding of appeal, revision, review or reference relating to recovery of input tax credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of the existing law, and if any amount of credit becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (7) (a) every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (b) every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and any amount found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions of the existing law and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (8) (a) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered under the existing law, be recovered as an arrear oftax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act; (b) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of -120- tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him incash under the said law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (9) (a) where any return, furnished under the existing law, is revised after the appointed day and if,pursuant tosuch revision, any amount is found to be recoverable or any amount of input tax credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear oftax urider this Act and the amount so recovered shall not be admissible as input tax credit under this Act; (b) where any return, furnished under the existing law, is revised after the appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision, any amount is found to be refundable or input tax credit is found to be admissible to any taxable person, the same shall be refunded to him in cash under the existing law, and the amount rejected, ifany, shall not be admissible as input tax credit under this Act. (10) Save as otherwise provided inthis Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable totax under the provisions of this Act. (11)(a) notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Sikkim Value Added Tax Act, 2005; 32 of 1994 (b) notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; (c) where tax was paid on any supply, both under the 32 of 1994 SikkimValue Added TaxAct, 2005 and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. (12) Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved bythe buyer and returned tothe seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day: -121- Provided that the said period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that the tax shall be payable bythe person returning the goods if such goods are liable to tax under this Act, and are returned after the period specified in this sub-section: Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within the period specified in this sub-section. (13) Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under the Sikkim Value Added Tax, 2005 and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 51 shall be made by the deductor under the said section where payment to the said supplier is made on or after the appointed day. (14) Where any goods or capital goods belonging to the principal are lying at the premises of the agent on the appointed day, the agent shall be entitled totake credit ofthe tax paid on such goods or capital goods subject to fulfilment of the following conditions: (i) the agent is a registered taxable person under this Act; (ii) both the principal and the agent declare the details of stock of goods or capital goods lying with such agent on the day immediately preceding the appointed day in such form and manner and within such time as may be prescribed in this behalf; (iii) the invoices for such goods or capital goods had been issued not earlier than twelve months immediately preceding the appointed day; and (iv) the principal has either reversed or not availed of the input tax credit in respect of such,- (a) goods; or (b) capital goods or, having availed of such credit, has reversed the said credit, to the extent availed of by him. Explanation. - For the purposes of this Chapter, the expression "capital goods" shall have the same meaning as assigned to it in the Sikkim Value Added Tax, 2005. -122- CHAPTER XXI MISCELLANEOUS 143. (1) A registered person (hereafter in this section referred to Job work as the "principal") may ,under intimation and subject to procedure. such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall,- (a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, ortools, within one year and three years, respectively, oftheir being sent out, to any of his place of business, without payment of tax; (b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, ortools, within one year and three years, respectively, of their being sent out from the place of business of ajob worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case- (i) where the job worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. (2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. (3) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordance with the provisions of clause (a) of sub- section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out. (4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of three years of their being sent out, it shall be -123- deemed that such capital goods had been supplied bythe principal to the job worker on the day when the said capital goods were sent out. (5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, ifsuch job worker is registered, or by the principal, if the job worker is not registered. Explanation. - For the purposes of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker. 144. Where any document - Presumption as to documents in certain cases. (i) is produced by any person under this Act or any other law for the time being in force; or (ii) has been seized from the custody or control of any person under this Act or any other law for the time being in force; or (iii) has been received from any place outside India inthe course of any proceedings under this Act or any other law for the time being in force, and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall-- (a) unless the contrary is proved by such person, presume - (i) the truth of the contents of such document; (ii) that the signature and every other part of such document which purports to be in the handwriting ofany particular person orwhich the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is inthat person's handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; -124- (b) admit the document inevidence notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence. 145. (1) Notwithstanding anything contained in any other law for Admissibility the time being in force, - of micro films, facsimile copies of documents and computer printouts as documents and as evidence. (a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or (b) a facsimile copy of a document; or (c) a statement contained in a document and included in a printed material produced by acomputer, subject to such conditions as may be prescribed; or (d) any information stored electronically in any device or media, including any hard copies made of such information, shall be deemed to be a document for the purposes of this Act and the rules made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible. (2) In any proceedings under this Act and or the rules made thereunder, where it is desired to give a statement in evidence by virtue of this section, a certificate, - (a) identifying the document containing thestatement and describing the manner inwhich itwas produced; (b) giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer, shall be evidence of any matter stated inthe certificate and for the purposes of this sub-section it shall be sufficient for a matter to be stated tothe best ofthe knowledge and belief ofthe person stating it. 146. The Government may, on the recommendations of the Common Council, notify the Common Goods and Services Tax Portal. Electronic Portal for facilitatinq registration, payment of tax, -125- furnishing of returns, computation and settlement of integrated tax, electronic way bill and for carrying out such other functions and for such purposes as may be prescribed. 147. The Government may, on the recommendations of the Deemed Council, notify certain supplies ofgoods as "deemed exports", Exports. where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India. 148. The Government may, on the recommendations of the Special Council, and subject to such conditions and safeguards procedure as may be prescribed, notify certain classes of registered for certain persons, and the special procedures to befollowed bysuch processes. persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons. 149. (1) Every registered person may be assigned a goods and Goods and services tax compliance rating score bythe Government services based on his record of compliance with the provisions of tax this Act. compliance rating. (2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed. (3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed. 150. (1) Any person, being- Obligation to furnish information return. (a) a taxable person; or (b) a local authority or other public body or association; or (c) any authority of the State Government responsible forthe collection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for the collection of excise duty or customs duty; or 43 of 1961. (d) an income tax authority appointee under the provisions of the Income-tax Act, 1961; or 2 of 1934. (e) a banking company within the meaning of clause (a) of section 45A of the Reserve Bank of India Act, 1934; or (f) a State Electricity Board or an electricity distribution or 36 of 2003. transmission licensee under the Electricity Act, 2003, or any other entity entrusted with such functions by the Central Government or the State Government; or -126- 16 of 1908. (g) the Registrar or Sub-Registrar appointed under secti 6 of the Registration Act, 1908; or 18 of 2013. (h) a Registrar within the meaning of the Companies Act, 2013;or 59 of 1988. (i) the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or 30 of 2013. U) the Collector referred to in clause (c) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or (k) the recoqnised stock exchange referred to in clause (f) 42 of 1956 of section 2 of the Securities Contracts (Regulation) Act, 1956; or 22 of 1996. (I) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996; or (m) an officer of the Reserve Bank of India as constituted 2 of 1934. under section 3 of the Reserve Bank of India Act, 1934; or 18 of 2013. (n) the Goods and Services Tax Network, a company registered under the Companies Act, 2013; or (0) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25;or (p) any other person as may be specified, on the recommendations of the Council, by the Government, who is responsible for maintaining record of registration or statement of accounts or any periodic return or document containing details of payment oftax and other details oftransaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being inforce, shall furnish an information return of the same in respect of such periods, within such time, insuch form and manner and to such authority oragency as may be prescribed. (2) Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period ofthirty days from the date ofsuch intimation or within such further period which, on an application made inthis behalf, the said authority may allow and ifthe defect is not rectified within the said period of thirty days or, the further period so allowed, then, notwithstanding anything contained in any other provisions of this Act, such -127- information return shall be treated as not furnished and the provisions of this Act shall apply. (3) Where aperson who is required tofurnish information return has not furnished the same within the time specified insub- section (1) or sub-section (2), the said authority may serve upon him a notice requiring furnishing of such information return within a period not exceeding ninety days from the date of service of the notice and such person shall furnish the information return. 151.(1) The Commissioner may, if he considers that it is Power to necessary so to do, by notification, direct that statistics collect may be collected relating to any matter dealt with by or in statistics. connection with this Act. (2) Upon such notification being issued, the Commissioner, or any person authorised by him in this behalf, may call upon the concerned persons to furnish such information or returns, in such form and manner as may be prescribed, relating to any matter in respect of which statistics is to be collected. 152.(1) No information ofany individual return or part thereof with Bar on respect to any matter given for the purposes of section disclosure of 150 or section 151 shall, without the previous consent in information. writing of the concerned person or his authorised representative, be published in such manner so as to enable such particulars to be identified as referring to a particular person and no such information shall be used for the purpose of any proceedings under this Act. (2) Except for the purposes of prosecution under this Act or any other Act for the time being in force, no person who is not engaged in the collection of statistics under this Act or compilation or computerisation thereof for the purposes of this Act, shall be permitted to see or have access to any information or any individual return referred to in section 151. (3) Nothing in this section shall apply to the publication of any information relating to a class of taxable persons or .class of transactions, if in the opinion of the Commissioner, it is desirable in the public interest to publish such information. 153. Any officer not below the rank of Assistant Commissioner Taking may, having regard to the nature and complexity ofthe case assistance and the interest of revenue, take assistance of any expert from an at any stage of scrutiny, inquiry, investigation or any other expert. proceedings before him. -128- 154. The Commissioner or an officer authorised by him may take samples of goods from the possession of any taxable samples. person, where he considers it necessary, and provide a receipt for any samples so taken. 155. Where any person claims that he is eligible for input tax Burden of credit under this Act, the burden of proving such claim shall Proof. lie on such person. 156. All persons discharging functions under this Act shall be Persons 45 of 1860. deemed to be public servants within the meaning of section deemed to be 21 of the Indian Penal Code. public servants. 157. (1) No suit, prosecution or other legal proceedings shall lie Protection of against the President, State President, Members, officers action taken or other employees ofthe Appellate Tribunal or any other under this person authorised by the said Appellate Tribunal for Act. anything which is in good faith done or intended to be done under this Act or the rules made thereunder. (2) No suit, prosecution or other legal proceedings shall lie against any officer appointed or authorised under this Act for anything which is done or intended to be done ingood faith under this Act or the rules made thereunder. 158. (1) All particulars contained in any statement made, return Disclosure of furnished or accounts or documents produced in information accordance with this Act, or in any record of evidence by a public given in the course of any proceedings under this Act servant. (other than proceedings before a criminal court), or in any record of any proceedings under this Act shall, save as provided in sub-section (3), not be disclosed. 1of 1872. (2) Notwithstanding anything contained inthe Indian Evidence Act, 1872, no court shall, save as otherwise provided in SUb-section (3), require any officer appointed or authorised under this Act to produce before it or to give evidence before it in respect of particulars referred to in sub-section (1). (3) Nothing contained in this section shall apply to the disclosure of,- 45 of 1860 (a) any particulars in respect of any statement, return, accounts, documents, evidence, affidavit or 49 of 1988. deposition, for the purpose of any prosecution under the Indian Penal Code orthe Prevention ofCorruption Act, 1988, or any other law for the time being inforce; or (b) any particulars tothe Central Government orthe State Government or to any person acting in the implementation of this Act, for the purposes of carrying out the objects of this Act; or -129- (c) any particulars when such disclosure is occasioned by the lawful exercise under this Act of any process for the service of any notice or recovery of any demand; or (d) any particulars to a civil court in any suit or proceedings, to which the Government or any authority under this Act is a party, which relates to any matter arising out of any proceedings under this Act or under any other law for the time being inforce authorising any such authority to exercise any powers thereunder; or (e)· any particulars to any officer appointed for the purpose of audit of tax receipts or refunds of the tax imposed by this Act; or (f) any particulars where such particulars are relevant for the purposes of any inquiry into the conduct of any officer appointed or authorised under this Act, to any person or persons appointed as an inquiry officer under any law for the time being in force; or (g) any such particulars to an officer of the Central Government or of any State Government, as may be necessary for the purpose of enabling that Government to levy or realise any tax or duty; or (h) any particulars when such disclosure is occasioned bythe lawful exercise bya public servant orany other statutory authority, of his or its powers under any law for the time being in force; or (i) any particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under this Act against a practising advocate, a tax practitioner, a practising cost accountant, apractising chartered accountant, a practising company secretary to the authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, a cost accountant, a chartered accountant or a company secretary, as the case may be; or U) any particulars to any agency appointed for the purposes of data entry on any automated system or forthe purpose ofoperating, upgrading or maintaining any automated system where such agency is contractually bound not to use or disclose such particulars except for the aforesaid purposes; or (k) any such particulars to an officer ofthe Government as may be necessary for the purposes of any other law for the time being in force; and -130- (I) any information relating to any class of taxable persons or class of transactions for publication, if, inthe opinion of the Commissioner, it is desirable in the public interest, to publish such information. 159. (1) If the Commissioner, or any other officer authorised by Publication of him in this behalf, is of the opinion that it is necessary or information in expedient in the public interest to publish the name of respect of any person and any other particulars relating to any persons in proceedings or prosecution under this Act in respect of certain cases. such person, it may cause to be published such name and particulars in such manner as it thinks fit. (2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the Appellate Authority under section 107 has expired without an appeal having been presented or the appeal, ifpresented, has been disposed of. Exp/anation.-In the case of firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of the Commissioner, or any other officer authorised by him inthis behalf, circumstances of the case justify it. 160. (1) No assessment, re-assessment, adjudication, review, Assessment revision, appeal, rectification, notice, summons or other proceedings, proceedings done, accepted, made, issued, initiated, or etc. not to be purported to have been done, accepted, made, issued, invalid on initiated in pursuance of any of the provisions of this Act certain shall be invalid or deemed to be invalid merely by reason grounds. of any mistake, defect or omission therein, if such assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are insubstance and effect inconformity with or according to the intents, purposes and requirements of this Act or any existing law. (2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question at or in the earlier proceedings commenced, continued or finalised pursuant to such notice, order or communication. 161. Without prejudice to the provisions of section 160, and Rectification notwithstanding anything contained inany other provisions of errors of this Act, any authority, who has passed or issued any apparent on decision or order or notice or certificate or any other the face of document, may rectify any error which is apparent on the record. -131- face of record in such decision or order or notice or certificate or any other document, either on its own mo ion or where such error is brought to its notice by any officer appointed under this Act or an officer appointed under he Central Goods and Services Tax Act or by the affec ed person within a period of three months from the date of issue of such decision or order or notice or certificate or any other document, as the case may be: Provided that no such rectification shall be done after a period of six months from the date of issue of such decision or order or notice or certificate or any other document: Provided further that the said period of six months shall not apply in SUd1 cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission: Provided also that where such rectification adversely affects any person, the principles of natural justice shall be followed by the authority carrying out such rectification. 162. Save as provided in sections117 and 118, no civil court Bar on shall have jurisdiction to deal with or decide any question jurisdiction arising from or relating to anything done or purported to be civil courts. done under this Act. 163. Wherever acopy ofany order or document isto be provided Levy offee. to any person on an application made by him for that purpose, there shall be paid such fee as may be prescribed. 164.(1) The Government may, on the recommendations of the Power of Council, by notification, make rules for carrying out the Governme: provisions of this Act. to make r es. (2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any ofthe matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules. (3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force. (4) Any rules made under sub-section (1) or sub-section (2) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees. 165. The Government may, by notification, make regulations Power to consistent with this Act and the rules made thereunder to make carry out the provisions of this Act. regulations. -132- 66. =:e rule made bythe Government, every regulation a e -2. -_ by he Government and every notification issued by the r les. regula ions Government under this Act, shall be laid, as soon as may and be after it is made or issued, before the State Legislature, notifications. while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if,before the expiry ofthe session immediately following the session or the successive sessions aforesaid, the State Legislature agrees in making any modification in the rule or regulation or in the notification, as the case may be, or the State Legislature agrees that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity ofanything previously done under that rule or regulation or notification, as the case may be. 167. The Commissioner may, by notification, direct that subject Delegation of to such conditions, if any, as may be specified in the powers. notification, any power exercisable byany authority orofficer under this Act may be exercisable also by another authority or officer as may be specified in such notification. 168. The Commissioner may, if he considers it necessary or Power to expedient so to do for the purpose of uniformity in the issue implementation of this Act, issue such orders, instructions instructions or directions to the State tax officers as it may deem fit, or directions. and thereupon all such officers and all other persons employed in the implementation of this Act shall observe and follow such orders, instructions or directions. 169.(1) Any decision, order, summons, notice or other Service of communication under this Act or the rules made notice in thereunder shall be served by anyone of the following certain methods, namely:-- circumstances. (a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner f holding authority to appear in the proceedings on behalf of the taxable person or to a person regularly employed by him in connection with the business, I!' or to any adult member of family residing with the taxable person; or . f (b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at r his 'last known place of business or residence; or -133- ~ r 'r r (c) un'ca -0 0 his e-mail address e of regis ration or as amended ( ma; .~~ -.available on the common portal; or (e) ca 'on in a newspaper circulating in the ic he axable person or the person to W 0 - is iss ed is las known to have resided, carried on si essorpersonally worked forgain;or (f) j' none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for any reason, then by affixing acopy thereof onthe notice board ofthe office of the concerned officer or authority who or which passed such decision or order or issued such summons or notice. (2) Every decision, order, summons, notice or any communication shall be deemed to have been served on the date on which itistendered or published or acopy thereof is affixed in the manner provided in sub-section (1). (3) When such decision, order, summons, notice or any communication is sent by registered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally taken by such post in transit unless the contrary is proved. 170. The amount of tax, interest, penalty, fine or any other sum Rounding off payable, and the amount of refund or any other sum due, of tax etc. under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, ifsuch part isfifty paise or more, itshall be increased to one rupee and if such part is less than fifty paise it shall be ignored. -171.(1) Any reduction in rate of tax on any supply of goods or Anti- services or the benefit of input tax credit shall be passed profiteering on to the recipient by way of commensurate reduction in Measure. prices. (2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. -134- (3) The Authority referred to in sub-see: ~ 2 .:-=. exercise such powers and discharge s•..e.n functions as may be prescribed. 172. (1) Ifany difficulty arises in giving effect to any provisions of Removal 0: this Act, the Government may, on the recommendations difficulties. of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty: Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be, after it is made, before the State Legislature. 173. Save as otherwise provided in this Act, on and from the Amendment date of commencement of this Act, of certain Acts. (i) Inthe Sikkim Entertainment Tax Act, 1980 in Section 2 after clause (d) a new clause (d1) may be inserted as follows:" (d1) Local bodies means: (i) municipality as defined in sub-section (49) of Section 2 of the Sikkim Municipalities Act, 2007 (ii) gram panchayat constituted under Section 12 of the Sikkim Panchayat Act, 1993 and (iii) zilla panchayat constituted under SUb-section (1) of Section 49 of the Sikkim Panchayat Act, 1993" (ii) In the Sikkim Entertainment Tax Act, 1980 the words "the government" appearing - (a) after the words "any other case as" and before the words "may from time to time" in sub-section (1) of Section 3, (b) after the words "paid to" and before the words "in the manner prescribed." in sub- section (1) of Section 3, (c) after the words "by video exhibition," and before the words "may realise" insub-section (1) of Section 3A, -135- (d) a e e 'for s "per month as" and before the words "may, from time to time" in sub-section (1) of Section 3A (e) after the words "specified by" and before the words "by notification" in sub-section (3) of Section 3A, (f) after the words "specified by" and before the words "by notification" in sub-section (1) of Section 38, (g) after the words "intimate to" and before the words "or an officer authorized" insub-section (2) of Section 38, (h) after the words "but where" and before the words "is of the opinion." in Section 4, (i) before the words "may, on such conditions" in sub-section (2) of Section 5, U) after the words "to be fixed by" and before the words "of the gross sum" in clause (c) of sub- section (2) of Section 5 (k) after the words "entertainment tax" and before the words "shall classify" in sub-section (3) of Section 5, (I) after the words "The decision of" and before the words "under sub-section (3)" in sub- section (4) of Section 5, (m) after the words "any entertainment where" and before the words "is satisfied" in sub-section (1) of Section 7, (n) afterthewords "shall bedecided by" and before thewords "whose decision shall" inexplanation to clause (b) of sub-section (1) of Section 7, (0) before the words "may, by general or special order" in sub-section (2) of Section 7, (p) after the words "authorized by" and before the words "may enter any place" insub-section (1) of Section 9, (q) before the words "may, make rules" in sub- section (1) of Section 10, -136- (r) after the words "approved b a words "for furnishing returns" in clause (e) :. sub-section (1) of Section 10, (s) after the words "may appeal to" and before the words "or such officer" in Section 11and (t) after the words "such officer as" and before the words "may specify" in Section 11 shall be substituted by the words "the local bodies". (iii) IntheSikkimIndustrialPromotion& IncentiveAct, 2000 in Section 12A, sub-section (1) along with clause (a) and (b); sub-section (2) and sub- section (3)shall beomitted and newsub-section (4) shall be inserted as under:- "(4) For those companies/firms having industrial unit in the State and availing the incentive of deferment of VAT, they shall have to pay tax at the rate and in the manner prescribed under this Act for the remaining period of incentive. The companies/ firms may apply for reimbursement of the amount of tax so paid and same shall be reimbursed in the manner prescribed." (iv) (a) In the Sikkim Casino (Control & Tax) Act, 2002 in long title, preamble and short title, for the words and brackets "(Control and Tax)", wherever they occur, the word "Regulation" shall be substituted. (b) "Inthe said Act, in Section 7for the words- There shall be levied and collected and paid to the State Government a gaming fee at such rates as may be notified by the State Government, in the Official Gazette, from time to time.", the words - "The licensee shall pay to the State Government an amount as may be notified in official gazette from time to time, as regulatory fee in addition to the license fee payable under sub-section (3) of Section 4 and renewal fee payable under sub-section (4) of Section 4." -137- (c) Inthe said Act, insub-section (1) of Section 10 the word "tax" occurring after the words "make the assessment of the" and ''to pay the amount of" and before the words "payable by the licensee" and "so assessed on or before such date" shall be substituted by the word "fine". 174. (1) Save as otherwise provided in this Act, on and from the Repeal and date of commencement of this Act, saving. (i) The Sikkim Sales Tax Act, 1983 except in respect of goods included inthe Entry 54 ofthe State List of the Seventh Schedule to the Constitution, (ii) The Sikkim Value Added Tax Act, 2005 except in respect of goods included in the Entry 54 of the State List of the Seventh Schedule to the Constitution, (iii) The Sikkim Ecology Fund & Environment Cess Act, 2005 except in respect of goods included in the Entry 54 of the State List of the Seventh Schedule to the Constitution, (herein after referred to as the repealed Acts) are hereby repealed. (2) The repeal of the said Acts and the amendment of the Acts specified in section 173 (hereafter referred to as "such amendment" or "amended Act", as the case may be) to the extent mentioned in sub-section (1) or section 173 shall not- (a) revive anything not inforce or existing atthe time of such amendment or repeal; or (b) affect the previous operation of the amended Acts or repealed Acts and orders or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the amended Acts or repealed Acts or orders under such repealed or amended Acts: Provided that any tax exemption granted as an incentive against investment through a notification shall not continue as privilege ifthe said notification isrescinded on orafter the appointed day; or -/38- ••... (d) affect any tax, surcharge, penalty, fine, in eres: as are due or may become due or any forfeiture 0 punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Acts or repealed Acts; or (e) affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so amended or repealed; or (f) affect any proceedings including that relating to an appeal, revision, review or reference, instituted before, on or after the appointed day under the said amended Acts or repealed Acts and such proceedings shall be continued under the said amended Acts or repealed Acts as if this Act had not come into force and the said Acts had not been amended or repealed. (3) The mention ofthe particular matters referred to insection 173 and sub-section (1) shall not be held to prejudice or affect the general application of section 20 of the Sikkim General Interpretation and General Clauses Act, 1977 with regard to the effect of repeal. -139- SCHEDULE I [See section 7] ACTIVITIES TO BETREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. 2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding.fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. 3. Supply of goods- (a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or (b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal. 4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business. -140- (d) affect any tax, surcharge, penalty, are due or may become due or any forfeit re ~ punishment incurred or infiicted in respect of any offence or violation committed against the provisions of the amended Acts or repealed Acts; or (e) affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so amended or repealed; or (f) affect any proceedings including that relating to an appeal, revision, review or reference, instituted before, on or after the appointed day under the said amended Acts or repealed Acts and such proceedings shall be continued under the said amended Acts or repealed Acts as if this Act had not come into force and the said Acts had not been amended or repealed. (3) The mention ofthe particular matters referred to insection 173 and sub-section (1) shall not be held to prejudice or affect the general application of section 20 ofthe Sikkim General Interpretation and General Clauses Act, 1977 with regard to the effect of repeal. -139- (b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after itsfirst occupation, whichever is earlier. Explanation.-For the purposes of this clause- (1) the expression "competent authority" means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:- (i) an architect registered with the Council of Architecture constituted under the Architects Act, 20 of 1972 1972; or (ii) a chartered engineer registered with the Institution of Engineers (India); or (iii) a licensed surveyor of the respective local body of the city ortown or village or development or planning authority; (2) the expression "construction" includes additions, alterations, replacements or remodeiing of any existing civil structure; (c) temporary transfer or permitting the use or enjoyment of any intellectual property right; (d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software; (e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and (f) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. 6. Composite supply The following composite supplies shall be treated as a supply of services, namely:- (a) works contract as defined in clause (119) of section 2;

and (b) supply, byway of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. 7. Supply of Goods The following shall be treated as supply of goods, namely:- Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration. -142- SCHEDULE III [See section7] ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 1. Services by an employee to the employer in the course of or in relation to his employment. 2. Services by any court or Tribunal established under any law for the time being in force. 3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities; (b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause. 4. Services offuneral, burial, crematorium or mortuary including transportation of the deceased. 5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II,sale of building. 6. Actionable claims, other than lottery, betting and gambling. Exp/anation.-For the purposes of paragraph 2, the term "court" includes District Court, High Court and Supreme Court. Jagat B. Rai (SSJS) L. R-cum-Secretary, Law Department. SIKK GOVERNMENT GAZE E EXTRAORDINARY PUBLISHED BY AUTHORITY Gangtok Saturday 29th September, 2018 No. 537 GOVERNMENT OF SIKKIM LAW DEPARTMENT GANGTOK No. 24/LD/18 Date: 29.09.2018 NOTIFICATION The following Act passed by the Sikkim Legislative Assembly and having received assent of the Governor on 24th day of September, 2018 is hereby published for general information:- THE SIKKIM GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 (ACT NO. 24 OF 2018) AN ACT further to amend the Sikkim Goods and Services Tax Act, 2017 (9 of 2017). BE it enacted by Legislature of Sikkim in the Sixty-ninth Year of the Republic of India as follows:- Short title and 1. (1) This Act may be called the Sikkim Goods and Services Tax commencement (Amendment) Act, 201.8. (2) Save as otherwise provided, the provisions of this Act shall come into force on such date as the Government of Sikkim 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. 2. In section 2 of the Sikkim Goods and Services Tax Act, 2 Amendment of (hereinafter referred to as the principal Act),- section 2 . -~ (a) in cIause (4), for " e '. s r --::; Appellate Tribunal", t e 0 s, '2. Authority, the Appellate Trib al a section (2) of section 171" s all e Su sr:.,:c:: (b) in clause (16), for the words "Cen ral Boa =x the words "Central Board of Indirect Taxes a 0 substituted; (c) in clause (17), for sub-clause (h), the following sub-cia se s ad e substituted, namely:- "(h) activities of a race club including by way of totalisal 0 a license to bookmaker or activities of a licensed bookmake i s c club; and"; (d) clause (18) shall be omitted; (e) in clause (35), for the word, brackets and letter "clause (c)", the ord, brackets and letter "clause (b)" shall be substituted; (f) in clause (69), in sub-clause (f), after the word and figures "article 371 ", the words, figures and letter "and article 371 J" shall be inserted; (g) in clause (102), the following Explanation shall be inserted, namely:- 'Explanation.-For the removal of doubts, it is hereby clarified that the expression "services" includes facilitating or arranging transactions in securities;'. Amendment of 3. In section 7 of the principal Act, with effect from the 151 day of July, section 7 2017,- (a) in sub-section (1),- (i) in clause (b), after the words "or furtherance of business;", the word "and" shall be inserted and shall always be deemed to have been inserted; (ii) in clause (c) after the words "a consideration", the word "and" shall be omitted and shall always be deemed to have been omitted; (iii) 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:- "(1 A) where certain activities or transactions, constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule 11."; -2- (c) in sub-section (3), for the 0 S, _ sections (1) and (2)", the words, '2 -- --- "sub-sections (1), (1A) and (2)" shall be s...~•s::_:!;:: t of 4. In section 9 of the principal Act, for sub-sectio (L), t e ' :: section shall be substituted, namely:- "(4) The Government may, on the recommendations of ' e by notification, specify a class of registered persons who s 2.', - respect of supply of specified categories of goods or services 0 0: received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or bo , and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both,". Amendment of 5. In section 10 of the principal Act,- section 10 (a) in sub-section (1)- (i) for the words "in lieu of the tax payable by him, an amount calculated at such rate", the words, brackets and figures "in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate" shall be substituted; (ii) in the proviso, for the words "one crore rupees, as may be recommended by the Council,", the words "one crore and fifty lakh rupees as may be recommended by the Council:" shall be substituted; (iii) after the proviso, the following proviso shall be inserted, namely:- "Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten percent of turnover in the State in the 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) save as provided in sub-section (1), e is ot e gaged in the supply of services;", Amendment of 6. In section 12 of the pri cioal :; '"' (2), i clause (a), the section 12 words, b ac ets and 'ig e "su snail be omitted, ~o ., e - - Amendme t 0 7. sec:i 3 0 .2... 0, s -sectio (2), in clause (a) and section 13 t: :;"'e ~a a:s a z ..'.e. s -section (2) of" occurring at .:J~:~:'-e 2. es. s-a eo O~e -3- sec ion 16 of the principal Ac , in s -sec: ~ 2 - - = (a) in clause (b), for the Explanation, the '0110:. 2.-='-:- - substituted, namely:- "Explanation.-For the purposes of this clause, i s 2 cs -<Os-== that the registered person has received the goods Of, 25 :~e 2.::S may be, services- (i) where the goods are delivered by the supplier to a recipre any other person on the direction of such registered pe so , whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person."; (b) in clause (c), for the word and figures "section 41", the words, figures and letter "section 41 or section 43A" shall be substituted. Amendment of 9. In section 17 of the principal Act,- section 17 (a) in sub-section (3), the following Explanation shall be inserted, namely:- "Explanation.-For the purposes of this sub-section, the expression 'value of exempt supply' shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule."; b) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:- "(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 (6) transportation of passengers; or (C) imparting training on driving such motor vehicles; (aa) vessels and aircraft except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vessels or aircraft; or (B) transporta io 0 passe gers; or (C) pa i 9 : ai 9 0 aviga ing such vessels; or ( ) g 0 'lying such aircraft; -4- r r - a sportation of goods; (ab) services 0' -- .. - .. . . . . . • .:.-:-:-:--= - - = -- -- = -=--= - = aintenance in so a as :~e/ -ea:s ::::-:::::::-~- - = - - - :::-- aircraft referred to i cia S8 2. - ~c~:::s __ Provided that the • :ax c ec': - - ..- -- ::::-- shall be available- (i) where the motor vehicles, vessels 0 ai c a': re'er"e::: : (a) or clause (aa) are used for the pu poses s eci'ieo :"8-e- (ii) where received by a taxable person engaged- (I) in the manufacture of such motor vehicles, vessels a·r~-2.'-:: r or (II) in the supply of general insurance services in respect 0 s c motor vehicles, vessels or aircraft insured by him; (b) the following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty eal h services, cosmetic and plastic surgery, leasi g, re 'i g 0 iring of motor vehicles, vessels or aircraft referred '0 i la se (a) or clause (aa) except when used for t e purposes specified therein, life insurance and health insura ce: 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 registere person for making an outward taxable supply of the sa e category of goods or services or both or as an element 0' c taxable composite or mixed supply; (ii) membership of a club, health and fitness centre; and (iii) travel benefits extended to employees on vacation suc G_ leave or home travel concession: Provided that the input tax credit in respect of such go :::5 or services or both shall be available, where it is obligato -- an employer to provide to its employees under any law '0 :-s time being in force.". Amendment of 10. In section 20 of the principal Act, in the Explanation, in clause section 20 the words and figures "under entry 84,", the words, figures a 1c••••••-._-..=. "under entries 84 and 92A" shall be substituted. Amendment of 11. In section 22 of the principal Act,- section 22 (a) in sub-section (1), after the proviso, the following provis inserted, namely:- -5- "Provided further that where s =~-=-:_- supplies of goods or services or bo ,-" C. s::s:::. State in respect of which the Central Gove == the aggregate turnover referred to in the fi s p s . -s --:;. a liable to be registered if his aggregate turnover i !r2..'-' C. exceeds the amount equivalent to such enhanced (b) in sub-section (4), in the Explanation, in clause (iii), at er e "Constitution", the words "except the State of Jammu and Kas i and States of Arunachal Pradesh, Assam, Himachal Prades Meghalaya, Sikkim and Uttarakhand" shall be inserted.". Amendment of 12. In section 24 of the principal Act, in clause (x), after the words section 24 "commerce operator", the words and figures "who is required to collect tax at source under section 52" shall be inserted. Amendment of 13. In section 25 of the principal Act,- section 25 (a) in sub-section (1), 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 (Central Act 28 of 2005), in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the State."; (b) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:- "Provided further 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.". Amendment of 14. In section 29 of the principal Act,- section 29 (a) in the marginal heading after the word "Cancellation", the words "or suspension" shall be inserted; (b) in sub-section (1), after clause (c), the following proviso shall be inserted, namely:- "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 following proviso shall be inserted, namely:- "Provided further that d i :",-:5-: rela ing to cancellation 0' reg·s:-c.: ~- :-5 =-::=- =- ==- -.= suspend the registration for s ":s- -: ~-: -:=--=-- :=-:: may be prescribed.". A endment of 15. In section 34 of the principal Act,- sec ion 34 (a) in sub-section (1),- --- (i) for the words "Where a tax invoice as". tr-e :. -"'s .. .::;- one or more tax invoices have" shall be s stitu:e (ii) for the words "a credit note", the words "0 e or ...,..',8 'e - notes for supplies made in a financial yea" s a' 8 substituted; (b) in sub-section (3),- (i) for the words "Where a tax in voice has", the wo ds " ere 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" s all be substituted. Amendment of 16. In section 35 of the principal Act, in sub-section (5), the following section 35 proviso shall 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 audit or appointed for auditing the accounts of local authorities under any law for the time being in force.". Amendment of 17. In section 39 of the principal Act,- section 39 (a) in sub-section (1),- (i) for the words "in such form and manner as may be prescribed", the words "in such form, manner and with in such time as may be prescribed" shall be substituted; (ii) the words "on or before the twentieth day of the month succeeding such calendar month or part thereof." shall be omitted; (iii) 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 return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein,"; -7- -~-= - (b) in sub-section (7), the following proviso s a. e ~ss-:2c: "Provided that the -Government may, on e'e of the Council, notify certain classes of regis-ere shall pay to the Government the tax due or part tee s 2. "'9' :-s return on or before the last date on which he is req i e : z_ ~ s- =a, such return, subject to such conditions and safeguards as e specified therein."; (c) in sub-section (9),- (i) for the words "in the return to be furnished for the month 0 quarter during which such omission or incorrect particulars are noticed", the words "in such form and manner as may be prescribed" 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. Insertion of 18. After section 43 of the principal Act, the following section shall be inserted, section 43A namely:- "43A. Procedure for furnishing return and availing input tax credit. (1) Notwithstanding anything contained in sub-section (2) of section16, 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, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed. (3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed. (4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty percent of the input tax credit available, on the basis of details furnished by the suppliers under the said sub- section. (5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act. -8- (6) The supplier and the reclple of a S 0,,! s-::. _~ - == severally liable to pay tax or to pay e i :J '::2 ::;-S:::: 2 : .2 as the case maybe, in relation to outward s polies ; - v,- 8- :-e :::=-:= s =_: have been furnished under sub-section (3) 0 sa-see: - .: return thereof has not been furnished. (7) For the purposes of sub-section (6), the recovery shall be ade ir- such manner as may be prescribed and such procedure ay provide for non-recovery of an amount of tax or input tax credi wrongly availed not exceeding one thousand rupees, (8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,- (i) within six months of taking registration; (ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such as may be prescribed.", Amendment of 19. In section 48 of the principal Act, in sub-section (2), after the word and section 48 figures "section 45", the words "and to perform such other functions" shall be inserted. Amendment of 20. In section 49 of the principal Act,- section 49 (a) in sub-section (2), for the word and figures "section 41", the words, figures and letter "section 41 or section 43A" shall be substituted; (b) in sub-section (5),- (i) in clause (c), the following proviso shall be inserted, namely:- "Provided that the input tax credit on account of State tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;"; (ii) in clause (d), the following proviso shall be inserted, namely:- "Provided that the input tax credit on account of Union Territory tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;", Insertion of 21. After section 49 of the principal Act, the following sections shall be section 49A and inserted, namely:- section 498 "49A. Utilisation of input tax credit subject to certain conditions - Notwithstanding anything contained in section 49, the input tax credit on account of State tax shall be utilized towards payment of integrated -9- tax a e ax, as the case may be, only after the i a ailable on account of integrated tax has first bee .6.-..= o ards such payment. 49B. Order of utilization of the input tax c edit - Notwithstanding anything contained in this Chapter and s je:: provisions of clause (e) and clause (f) of sub-section (5) oi se : the Government may, on the recommendations of the Co' prescribe the order and manner of utilisation of the input tax cred t account of integrated tax, central tax, State tax or Union Territory ax, as the case may be, towards payment of any such tax.". Amendment 22. In section 52 of the principal Act, in sub-section (9), for the word a d of section 52 figures "section 37", the words and figures "section 37 or section 39" shall be substituted. Amendment of 23. In section 54 of the principal Act,- section 54 (a) in sub-section (8), in clause (a), for the words "zero-rated supplies", the words "export" and "exports" shall respectively be substituted; (b) sub-section 14, in the Explanation, in clause (2),- (i) in sub-clause (c), in item (i), 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:- "(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to SUb-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;". Amendment of 24. In section 79 of the principal Act, after sub-section (4), the following section 79 Explanation shall be inserted, namely:- 'Explanation.-For the purposes of this section, the word person shall include "distinct persons" as referred to in SUb-section (4) or, as the case may be, sub-section (5) of section 25'. Amendment of 25. In section 107 of the principal Act, in sub-section (6), in clause (b), section 107 after the words "arising from the said order,", the words "subject to a maximum of twenty-five crore rupees," shall be inserted. Amendment of 26. In section 112 of the principal Act, in sub-section (8), in clause (b), section 112 after the words "arising from the said order," the words "subject to a maximum of fifty crore rupees," shall be inserted. -10- o 27. In section i29 of the principal Act, in sub-section (6), and in the proviso for the words "seven days" occurring at both the places, the words "fourteen days" shall be substituted. 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 of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.". Amendment of 29. In Schedule I of the principal Act, in paragraph 4, for the words Schedule I "taxable person", the word "person" shall be substituted. Amendment of 30. In Schedule" of the principal Act, in the heading, after the word Schedule" "ACTIVITIES", the words "OR TRANSACTIONS" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2017. Amendment of 31. In Schedule III of the principal Act,- Schedule '" (i) afte r parag rap h 6, the followi n9 parag raphs sha II be inserted, namely:- '7. Supply of goods from a place outside India to another place outside India without such goods entering into India. 8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption."; (ii) The existing Explanation shall be re-numbered as Explanation 1 and after Explanation 1 as so re-numbered, the following Explanations shall be inserted, namely:- "Explanation 2--Fo r the pu rposes of paragrap h 8, the expression "warehoused goods" shall have the same meaning as assigned to it in the Customs Act, 1962 (Central Act 52 of 1962),". K.C. 8arphungpa (SSJS) l.R-cu m-Secretary Law Department Type your text S.G.P.G. -5371Com. 61Gazette /100 Nos.! Dti- 29.09.2018. THE SUBSEQUENT AMENDMENTS TO THE SIKKIM GOODS AND SERVICES TAX ACT, 2017 (ACT NO. 9 OF 2017) AMENDED AND UPDATED UPTO SEPTEMBER, 2018