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Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE

(Legislative Department)
New Delhi, the 12th April, 2017/Chaitra 22, 1939 (Saka)
The following Act of Parliament received the assent of the President on the
12th April, 2017, and is hereby published for general information:—
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

N o . 12 of 2017
[12th April, 2017.]
An Act to make a provision for levy and collection of tax on intra-State supply of
goods or services or both by the Central Government and for matters
connected therewith or incidental thereto.
B E it enacted by Parliament in the Sixty-eighth Year of the Republic of India as
follows:—
CHAPTER I
P reliminary
1. (1) This Act may be called the Central Goods and Services Tax Act, 2017. Short title,
extent and
(2) It extends to the whole of India except the State of Jammu and Kashmir. commencement.
(3) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint:
2 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
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.
Definitions. 2. In this Act, unless the context otherwise requires,—
(1) “actionable claim” shall have the same meaning as assigned to it in section 3
of the Transfer of Property Act, 1882; 4 of 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 Central Board of Excise
and Customs, the 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 auctioneer 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
constituted under section 109;
(10) “appointed day” means the date on which the provisions of this Act shall
come into force;
(11) “assessment” means determination of tax liability under this Act and includes
self-assessment, re-assessment, provisional assessment, summary assessment and
best judgment assessment;
(12) “associated enterprises” shall have the same meaning as assigned to it in
section 92A of the Income-tax Act, 1961; 43 of 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 a bank authorised by
the Government to collect the tax or any other amount payable under this Act;
Sec . 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
(15) “authorised representative” means the representative as referred to in

section 116;
(16) “Board” means the Central Board of Excise and Customs constituted under
54 of 1963. 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) any activity 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) of the facilities or benefits to its members;
( 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 is engaged in the 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.—For the purposes of this 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 in the 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 in any other capacity, in a State or a Union
territory where he has no fixed place of business;
(21) “central tax” means the central goods and services tax levied under
section 9;
(22) “cess” shall have the same meaning as assigned to it in the Goods and
Services Tax (Compensation to States) Act;
(25) “chartered accountant” means a chartered accountant as defined in
clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949; 38 of 1949.
(24) “Commissioner” means the Commissioner of central tax and includes
the Principal Commissioner of central tax appointed under section 3 and the
Commissioner of integrated tax appointed under the Integrated Goods and Services
Tax Act;
(25) “Commissioner in the Board” means the Commissioner referred to in
section 168;
(26) “common portal” means the common goods and services tax electronic
portal referred to in section 146;
(27) “common working days” in respect of a State or Union territory shall
mean such days in succession which are not declared as gazetted holidays by the
Central Government or the concerned State or Union territory Government;
(28) “company secretary” means a company secretary as defined in clause
(c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980; 56 of 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 in conjunction
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 o f goods, packing materials, transport and insurance is a composite
supply and supply o f 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 Governm ent 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 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 of the 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 is

provided, or agreed 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 a vessel, an aircraft and a vehicle;
(35) “cost accountant” means a cost accountant as defined in clause (c) of
23 of 1959. sub-section (1) of section 2 of the Cost and Works 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
(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
Board;
(41) “document” includes written or printed record of any sort and electronic
21 of 2000. record as defined in clause (t) of section 2 of the Information Technology Act, 2000;
(42) “drawback” in relation to any goods manufactured in India and exported,
means the rebate of duty, tax or 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
(47) “exempt supply” means supply of any goods or services or both which
attracts nil rate of tax or which may be wholly exempt from tax under section 11, or
under section 6 of the Integrated Goods and Services Tax 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 Parliament 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 if they
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 Welfare 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 which are agreed to be severed before supply or under a
contract of supply;
(55) “Government” means the Central Government;
(54) “Goods and Services Tax (Compensation to States) Act” means the Goods
and Services Tax (Compensation to States) Act, 2017;
(55) “goods and services tax practitioner” means any person who has been
approved under section 48 to 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 Maritime
Zones Act, 1976, and the air space above its territory and territorial waters; 80 of 1976.
(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 in the 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 (5) and (4) of
section 9;
(c) the tax payable under the provisions of sub-sections (5) and (4) of
section 5 of the Integrated Goods and Services Tax Act;
(d) the tax payable under the provisions of sub-sections (5) and (4) of
section 9 of the respective State Goods and Services Tax Act; or
(e) the tax payable under the provisions of sub-sections (5) and (4) of
section 7 of the Union Territory Goods and Services Tax Act,
but does not include the tax paid under the composition levy;
(65) “input tax credit” means the credit of input tax;
(64) “intra-State supply of goods” shall have the same meaning as assigned to
it in section 8 of the Integrated Goods and Services 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 “M unicipality” 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 Cantonments
41 of 2006. Act, 2006;
(e) a Regional Council or 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 a supply is received at 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 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
(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 of business or fixed establishment, the location of the 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 in any manner
that results in emergence 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 at the 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 a taxable person
for a single price where such supply does not constitute a composite supply.
Illustration.— A supply o f a package consisting o f canned foods, sweets,
chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied fo r a
single price is a mixed supply. Each o f 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 recognised 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 to it in clause (28)
of section 2 of the Motor Vehicles Act, 1988; 59 of 1988.
(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;
(78) “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 is outside the taxable
territory;
(80) “notification” means a notification published in the Official Gazette and the
expressions “notify” and “notified” shall be construed accordingly;
(81) “other territory” includes territories other than those comprising in a State
and those referred to in sub-clauses (a) to (e) of clause (114) ;
(82) “output tax” in relation to a taxable 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;
(85) “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 in the course
or furtherance of business;
(84) “person” includes—
(a) an individual;
(b) a Hindu Undivided Family;
(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
( f an association of persons or a body of individuals, whether incorporated
or not, in India or outside India;
(g) any corporation established by or under any Central Act, State Act or
Provincial Act or a Government company as defined in clause (45) of section 2 of
18 of 2013.
the Companies Act, 2013;
(h) any body corporate incorporated by or under the laws of a country
outside India;
(i) a co-operative society registered under any law relating to co-operative
societies;
(j ) a local authority;
(k) Central Government or a State Government;
21 of 1860. (l) society as defined under the Societies Registration Act, 1860;
(m) 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 a taxable 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 a taxable person is engaged in business through an
agent, by whatever name called;
(86) “place of supply” means the place of supply as referred to in Chapter V of
the 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 in the 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 central tax who is assigned that function
by the Commissioner in the Board;
(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;
(95) “recipient” of supply of goods or services or both, means—
(a) where a consideration is payable 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 person
to whom the goods are delivered or 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 of the 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 Board under this Act on
the recommendations of the Council;
(96) “removal’’ in relation to goods, means—
(a) despatch of the goods for delivery by the 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 (5) or sub-section (4) of section 9, or under sub-section (5) 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;
(101) “securities” shall have the same meaning as assigned to it in clause (h) of
section 2 of the Securities Contracts (Regulation) Act, 1956; 42 of 1956.
(102) “services” means anything other than goods, money and securities but
includes activities relating to the 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;
(105) “State” includes a Union territory with Legislature;
(104) “State tax” means the tax levied under any State Goods and Services Tax
Act;
(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) “tax period” means the period for which the return is required to be furnished;
(107) “taxable person” means a person 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 transm ission or reception of signs, signals, writing,
images and sounds or intelligence of any nature, by wire, radio, visual or other
electromagnetic means;
(111) “the State Goods and Services Tax Act” means the respective State 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 of inward supplies on which tax is
payable by a person 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;
(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 in full;
(118) “voucher” means an instrument where there is an obligation to accept it as
consideration or part consideration for a supply of goods or services or both and
where the goods or services or both to be supplied or 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 Union Territory Goods and Services Tax
Act and the Goods and Services Tax (Compensation to States) Act shall have the same
meaning as assigned to them in those Acts;
(121) any reference in this Act to a law which is not in force in the State of Jammu
and Kashmir, shall, in relation to that State be construed as a reference to the
corresponding law, if any, in force in that State.
CHAPTER II
Administration
3. The Government shall, by notification, appoint the following classes of officersOfficers
for under
the purposes of this Act, namely:— this Act.
(a) Principal Chief Commissioners of Central Tax or Principal Directors General of

Central Tax,
(b) Chief Commissioners of Central Tax or Directors General of Central Tax,
(c) Principal Commissioners of Central Tax or Principal Additional Directors
General of Central Tax,
(d) Commissioners of Central Tax or Additional Directors General of Central Tax,
(e) Additional Commissioners of Central Tax or Additional Directors of

Central Tax,
( f Joint Commissioners of Central Tax or Joint Directors of Central Tax,
(g) Deputy Commissioners of Central Tax or Deputy Directors of Central Tax,
(h) Assistant Commissioners of Central Tax or Assistant Directors of
Central Tax, and
(i) any other class of officers as it may deem fit:
Provided that the officers appointed under the Central Excise Act, 1944 shall be deemed 1 of 1944.
to be the officers appointed under the provisions of this Act.
A ppointm ent 4. (1) The Board may, in addition to the officers as may be notified by the Government
of officers. under section 3, appoint such persons as it may think fit to be the officers under this Act.
(2) Without prejudice to the provisions of sub-section (1), the Board may, by
order, authorise any officer referred to in clauses (a) to (h) of section 3 to appoint officers of
central tax below the rank of Assistant Commissioner of central tax for the administration of
this Act.
Powers of 5. (1) Subject to such conditions and limitations as the Board may impose, an officer of
officers. central tax may exercise the powers and discharge the duties conferred or imposed on him
under this Act.
(2) An officer of central tax may exercise the powers and discharge the duties conferred
or imposed under this Act on any other officer of central tax who is subordinate to him.
(5) 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 is subordinate
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 central tax.
Authorisation 6. (1) Without prejudice to the provisions of this Act, the officers appointed under
of officers of the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act
State tax or
Union are authorised to be the proper officers for the purposes of this Act, subject to such
territory tax conditions as the Government shall, on the recommendations of the Council, by notification,
as proper specify.
officer in
certain (2) S ubject to the conditions specified in the notification issued under
circumstances. sub-section (1),—
(a) where any proper officer issues an order under this Act, he shall also issue an
order under the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act, as authorised by the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act, as the case may be, under intimation to the
jurisdictional officer of State tax or Union territory tax;
(b) where a proper officer under the State Goods and Services Tax Act or the
Union Territory 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.
(5) 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 State Goods and Services Tax Act or the Union Territory Goods and Services Tax
Act.
CHAPTER III
Levy and collection of tax
7. (1) For the purposes of this Act, the expression “supply” includes— Scope of
supply.
(a) all forms of supply of goods or services or both such as sale, transfer, barter,
exchange, licence, rental, lease or disposal made or agreed to be made for a consideration
by a person in the 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 in which 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 of the 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 determined in the following Tax liability
manner, namely:— on composite
and mixed
(a) a composite supply comprising two or more supplies, one of which is a supplies.
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.
9. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the Levy and
central goods and services tax on all intra-State supplies of goods or services or both, except collection.
on the supply of alcoholic liquor for human consumption, on the value determined under
section 15 and at such rates, not exceeding twenty per cent., as may be notified by the
Government on the recommendations of the Council and collected in such manner as may be
prescribed and shall be paid by the taxable person.
(2) The central 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 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 the supply of such goods or services or both.
(4) The central 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 if he is the person liable for paying the tax in relation to the supply of such goods
or services or both.
specify categories of services the tax on intra-State supplies of which shall be paid by the
electronic commerce operator if such services are supplied through it, and all the provisions
of this Act shall apply to such electronic commerce operator as if he is the 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 in the 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.
C om position 10. (!) Notwithstanding anything to the contrary contained in this Act but subject to
levy. the provisions of sub-sections (5) and (4) of section 9, a registered person, whose aggregate
turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in
lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but
not exceeding,—
(a) one per cent. of the turnover in State or turnover in Union territory in case of
a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory
in case of persons engaged in making supplies referred to in clause (b) of paragraph 6
of Schedule II, and
(c) half per cent. of the turnover in State or turnover in Union territory 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 II;
(b) he is not engaged in making any supply of goods which are not leviable to tax
under this Act;
(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 persons are having the same Permanent
Account Number (issued under the Income-tax Act, 1961), the registered person shall not be 43 of 1961.
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 a financial year exceeds the limit
specified under sub-section (1).
(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 the public interestPower
so to
to do, it may, on the recommendations of the Council, by notification, exempt generally, either grant
absolutely or subject to such conditions as may be specified therein, goods or services or exemption
from tax.
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, it may, 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, if it considers necessary or expedient 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 if it had always been the part of the first such
notification or order, as the case may be.
Explanation.—For the purposes of this section, where an exemption in respect of
any goods or services or both from the whole or part of the tax 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.
CHAPTER IV
Time and value of supply
12. (1) The liability to pay tax on goods shall arise at the time of supply, as determined
Time of
in accordance with the provisions of this section. supply of
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 of taxable goods receives an amount up to one
thousand rupees in excess of the amount indicated in the tax invoice, the time of
supply to the extent of such excess amount shall, at the 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
is earlier.
(5) In 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 earliest of the following dates, namely:—
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the 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 it is 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, if the 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 (5) 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.
Time of supply 13. (1) The liability to pay tax on services shall arise at the time of supply, as determined
of services.
in accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates, namely:—
(a) the date of issue of invoice by the supplier, if the invoice is issued 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 of provision of service, if the invoice is not issued within the period
prescribed under sub-section (2) of section 31 or the 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 of taxable service receives an amount up to one
thousand rupees in excess of the amount indicated in the tax invoice, the time of
supply to the extent of such excess amount shall, at the 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.
(5) In 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 in the books of account of the recipient or the
date on which the payment is debited in his bank account, whichever is earlier; or
(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
in the 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, if the 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 (5) 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 in section 12 or section 13, the time of supply, Change in
where there is a change in the rate of tax in respect of goods or services or both, shall be rate of tax in
respect of
determined in the following manner, namely:— supply of
goods or
(a) in case the goods or services or both have been supplied before the change
services.
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 change in rate of tax,
but the invoice for the same is issued after the change in rate of tax, the time of
supply shall be the date of receipt of payment;
(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 shall 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 in
the bank account if such credit in the bank account is after four working days
from the date of change in the rate of tax.
Explanation.—For the purposes of this section, “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.
Value of 15. (!) The value of a supply of goods or services or both shall be the transaction
taxable
value, which is the price actually paid or payable for the said supply of goods or services or
supply.
both where the supplier and the recipient of the supply are not related and the price is the
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 time
being in force other than this Act, the State Goods and Services Tax Act, the Union
Territory 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
(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.
(5) The value of the 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 of such 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 by the Government on the recommendations of the
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 of them 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;
(b) the term “person” also includes legal persons;
(c) persons who are associated in the 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 and restrictions as Eligibility and
may be prescribed and in the manner specified in section 49, be entitled to take credit of input conditions for
taking input
tax charged on any supply of goods or services or both to him which are used or intended to
tax credit.
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 a tax 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 or any other person on the direction of such registered person, 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;
(c) subject to the provisions of section 41, the tax charged in respect of such
supply has been actually paid to the Government, either in cash or through 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:
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 with tax payable thereon.
(5) Where the registered person has claimed depreciation on the tax component of the
cost of capital goods and plant and machinery under the provisions of the Income-tax
Act, 1961, the input tax credit on the said tax component shall not be allowed. 43 of 1961.
(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.
Apportionment 17. (!) Where the goods or services or both are used by the registered person partly
of credit and for the purpose of any business and partly for other purposes, the amount of credit shall be
blocked
credits.
restricted to so much of the input tax as is attributable to 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 of the input tax as is attributable to the said
taxable supplies including zero-rated supplies.
(5) 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 5 of Schedule
II, sale of building.
(4) A banking company or a financial institution including a non-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 of sub-section (2), or
avail 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 per cent. shall not apply to the tax paid on
supplies made by one registered person to another registered person having the same
Permanent Account Number.
(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub
section (1) of section 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
(B) 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 a club, 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
(B) 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 of works 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.
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 10;
( 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.— For the purposes of this Chapter and Chapter VI, the expression “plant
and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or
structural 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 prescribed— Availability of
credit in
(a) a person who has applied for registration under this Act within thirty days special
from the date on which he becomes liable to registration and has been granted such circumstances.
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 of this Act;
(b) a person who takes registration under sub-section (5) 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;
(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 on the 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 reduced by such percentage
points as may be prescribed;
(d) where an exempt supply of goods or services or both by a registered person
becomes a taxable 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 and on capital goods exclusively used
for such exempt supply on the day immediately preceding the date from which such
supply becomes taxable:
Provided that the credit on capital goods shall be reduced by such percentage
points as may be prescribed.
(2) A registered person shall not be entitled to take input tax credit 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.
(5) 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 10 or, where the goods or services 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, if any,
lying in his electronic credit ledger shall lapse.
(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 section 15, 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 section 15.
19. (1) The principal shall, subject to such conditions and restrictions as may be Taking input
prescribed, be allowed input tax credit on inputs sent to a job worker for job work. tax credit in
respect of
(2) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, inputs and
capital goods
the principal shall be entitled to take credit of input tax on inputs even if the inputs are sent for job
directly sent to a job worker for job work without being first brought to his place of business. work.
(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, 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:
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 if the capital
goods are directly sent to a job 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 of three 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:
Provided that where the capital goods are sent directly to a job worker, the period of
three years shall be counted from the date of receipt of capital goods by the job worker.
(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and
dies, jigs and fixtures, or tools sent out to a job worker for job work.
Explanation.—For the purpose of this section, “principal” means the person referred
to in section 143.
20. (1) The Input Service Distributor shall distribute the credit of central tax as central Manner of
tax or integrated tax and integrated tax as integrated tax or central tax, by way of issue of a distribution of
credit by
document containing the amount of input tax credit being distributed in such manner as may
Input Service
be prescribed. Distributor.
(2) The Input Service Distributor may distribute the credit subject to the following
conditions, namely:—
(a) the credit 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 to 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 of the turnover in a
State or turnover in a 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 in the 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 of the turnover of all recipients and which
are operational in the current year, during the said relevant period.
Explanation.—For the purposes of this section,—
(a) the “relevant 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
(ii) if some or all recipients of the credit do not have any turnover in
their States or Union territories in the financial year preceding the year
during which the credit is to 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 as that of the
Input Service Distributor;
(c) the term ‘‘turnover’’, in relation to any registered person engaged in
the supply of taxable goods as well as goods not taxable under this Act, means
the value of turnover, reduced by the amount of any duty or tax levied under
entry 84 of List I of the Seventh Schedule to the Constitution and entries 51 and
54 of List II of the said Schedule.
Manner of 21. Where the Input Service Distributor distributes the credit in contravention
recovery of of the provisions contained in section 20 resulting in excess distribution of credit to
credit
distributed in
one or more recipients of credit, the excess credit so distributed shall be recovered
excess. from such recipients along with interest, and the provisions of section 73 or section 74,
as the case may be, shall, mutatis mutandis, apply for determination of amount to be
recovered.
CHAPTER VI
Registration
Persons liable 22. (!) Every supplier shall be liable to be registered under this Act in the State or
for Union territory, other than special category States, from where he makes a taxable supply of
registration.
goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh
rupees:
Provided that where such person makes taxable supplies of goods or services or both
from any of the special category States, he shall be liable to be registered if his aggregate
turnover in a financial year exceeds ten lakh rupees.
(2) Every person who, on the day immediately preceding the appointed day, is registered
or holds a licence under an existing law, shall be liable to be registered under this Act with
effect from the appointed day.
(3) Where a business carried on by a taxable person registered under this Act is
transferred, 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.
(4) Notwithstanding anything contained in sub-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, demerger of two or more companies pursuant to an 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.
(i) the expression “aggregate turnover” 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 be treated as the supply of goods by the principal referred to in section 143, and
the value of such goods shall not be included in the 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 of the Constitution.
23. (1) The following persons shall not be liable to registration, namely:— Persons not
liable for
(a) any person engaged exclusively in the business of supplying goods or registration.
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.
specify the category of persons who may be exempted from obtaining registration under this
Act.
24. Notwithstanding anything contained in sub-section (1) of section 22, the following
Compulsory
categories of persons shall be required to be registered under this Act,— registration in
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;
(vii) persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise;
(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 database 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 of persons as may be notified by the Government
on the recommendations of the Council.
25. (1) Every person who is liable to be registered under section 22 or section 24 shall
Procedure for
apply for registration in every such State or Union territory in which he is so liable within registration.
thirty days from the date on which he becomes liable to registration, in such manner and
subject to such conditions as may be prescribed:
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 coastal State or Union territory where the nearest point of the
appropriate baseline is located.
(2) A person seeking registration under this Act shall be granted a single registration
in a State or Union territory:
Provided that a person having multiple business verticals in a State or Union territory
may be granted a separate registration for each business vertical, subject to such conditions
as may be prescribed.
(5) A person, though not liable to be registered under section 22 or 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 in one 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
Union territory, then such establishments shall be treated as establishments of distinct
persons for the purposes of this Act.
(6) Every person shall have a Permanent Account Number issued under the Income-
tax Act, 1961 in order to be eligible for grant of registration: 43 of 1961.
Provided that a person required to deduct tax under section 51 may have, 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 of such other documents
(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),—
(a) any specialised agency of the United Nations Organisation or any
Multilateral Financial Institution and Organisation notified under the United
Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign 46 of 1947.
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 of the 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 under the State Goods Deemed
and Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to registration.
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 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 State Goods and
Services Tax Act or the Union Territory 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 person or a non Special
resident taxable person shall be valid for the period specified in the application for provisions
relating to
registration or ninety days from the effective date of registration, whichever is earlier and casual taxable
such person shall make taxable supplies only after the issuance of the certificate of person and
non-resident
registration:
taxable
person.
Provided that the proper officer may, on sufficient cause being shown by the said
taxable person, extend the said period of ninety days by a further period not exceeding
ninety days.
(2) A casual taxable person or a non-resident taxable person shall, at the time of
submission of application 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 of tax equivalent to the estimated tax
liability of such person for the period for which the extension is sought.
(5) The amount deposited under sub-section (2) shall be credited to the electronic
cash ledger of such person and shall be utilised in the m anner provided under
section 49.
28. (1) Every registered person and a person to whom a Unique Identity Number has Amendment
been assigned shall inform the proper officer of any changes in the information furnished at of
registration.
the 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.
(5) Any rejection or approval of amendments under the State Goods and Services Tax
Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed
to be a rejection or approval under this Act.
29. (1) The proper officer may, either on his own motion or on an application filed by cancellation
the registered person or by his legal heirs, in case of death of such person, cancel the of
registration.
registration, in such manner and within such period as may 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 is any change in the constitution of the business; or
(c) the taxable person, other than the person registered under sub-section (5) 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 (5) 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.
(5) 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 State Goods and Services Tax Act or the
Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
cancellation of registration under this Act.
(5) Every registered person whose registration is cancelled 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 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 or the 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.
Revocation 30. (1) Subject to such conditions as may be prescribed, any registered person, whose
of registration is cancelled by the proper officer on his own motion, may apply to such officer
cancellation
for revocation of cancellation of the registration in the prescribed manner within thirty days
of
registration. from the date of 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.
(5) The revocation of cancellation of registration under the State Goods and Services
Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be
deemed to be a revocation of cancellation of registration under this Act.
cHAPTER VII
Tax invoice , credit and debit notes
31. (!) A registered person supplying taxable goods shall, before or at the time of,— Tax invoice.
(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.
(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 to the supply shall be deemed to be a
tax invoice; or
(b) tax invoice may not be issued.
(5) 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 in such 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 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;
(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 is made and no tax invoice is issued in pursuance thereof, the said registered
person may issue to the person who had made the payment, a refund voucher against
such payment;
(f) a registered person who is liable to pay tax under sub-section (3) or
sub-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 9 shall 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.
Explanation.—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 earlier.
Prohibition of 32. (1) A person who is not a registered person shall not collect in respect of any
unauthorised supply of goods or services or both any amount by way of tax under this Act.
collection of
tax. (2) No registered person shall collect tax except in accordance with the provisions of
this Act or the rules made thereunder.
Amount of 33. Notwithstanding anything contained in this Act or any other law for the time being
tax to be in force, where any supply is made for a consideration, every person who is liable to pay tax
indicated in
for such supply shall prominently indicate in all documents relating to assessment, tax
tax invoice
and other invoice and other like documents, the amount of tax which shall form part of the price at
documents. which such supply is made.
Credit and debit 34. (1) Where a tax invoice has been issued for supply of any goods or services or
notes. both and the taxable value or tax charged in that tax invoice is found 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 in the 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 in output tax liability of the supplier shall be permitted, if
the incidence of tax and interest on such supply has been passed on to any other person.
(3) Where a tax invoice has been issued for supply of any goods or services or both
and the taxable value or tax charged in that tax invoice is found 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
(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 in the return for the month during
which such debit note has been issued and the tax liability shall be adjusted in such manner
Explanation.—For the purposes of this Act, the expression “debit note” shall include
a supplementary invoice.
CHAPTER VIII
A ccounts and records
35. (1) Every registered person shall keep and maintain, at his principal place of business,
Accounts and
as mentioned in the certificate of registration, a true and correct account of— other records.
(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 of warehouse 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 of the
goods in such manner as may be prescribed.
(3) The Commissioner may notify a class of taxable 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 person 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 a financial 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) of section 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 goods
or services or both had been supplied by such person and the provisions of section 73
or section 74, as the case may be, shall, mutatis mutandis, apply for determination of
such tax.
Period of 36. Every registered person required to keep and maintain books of account or other
retention of records in accordance with the provisions of sub-section (1) of section 35 shall retain them
accounts.
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 for an
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
Furnishing 37. (1) Every registered person, other than an Input Service Distributor, a non-resident
details of taxable person and a person paying tax under the provisions of section 10 or section 51 or
outward
supplies.
section 52, shall furnish, electronically, in such form and 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 State
tax or Commissioner of Union territory tax shall be deemed to be notified by the
Commissioner.
(2) Every registered person who has been com m unicated the details under
sub-section (3) of section 38 or the details pertaining to inward supplies of Input Service
Distributor 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 of any 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 of the details furnished
under sub-section (1) shall be allowed after furnishing of the return under section 39 for the
month of September following the end of the financial year to which such details pertain, or
furnishing of the relevant annual return, whichever is earlier.
Explanation.—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 Distributor or a
Furnishing
non-resident taxable person or a person paying tax under the provisions of section 10 or details of
inward
section 51 or section 52, shall verify, validate, modify or delete, if required, the details
supplies.
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 or debit 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
51 of 1975. and services tax is payable under section 3 of the Customs Tariff Act, 1975, and credit or debit
notes received in respect of such supplies during a tax 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:
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 State
tax or Commissioner of Union territory tax 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 of any 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
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 of the details furnished
under sub-section (2) shall be allowed after furnishing of the return under section 39 for the
month of September following the end of the financial year to which such details pertain, or
furnishing of the relevant annual return, whichever is earlier.
Furnishing of 39. (1 ) E v e ry r e g is te r e d p e rs o n , o th e r th a n a n In p u t S e rv ic e D is tr ib u to r o r a
returns. n o n -re sid e n t ta x a b le p e rs o n o r a p e rso n p a y in g ta x u n d e r th e p ro v isio n s o f se c tio n 10 o r
sec tio n 51 o r se c tio n 52 shall, fo r e v e ry c a le n d a r m o n th o r p a rt th ereo f, fu rn ish , in su c h fo rm
a n d m a n n e r as m a y b e p re sc rib e d , a re tu rn , elec tro n ically , o f in w a rd a n d o u tw a rd su p p lie s o f
g oo d s o r serv ices o r b o th , in p u t ta x c re d it av ailed , ta x p a y a b le , tax p a id a n d su c h o th e r
p a rtic u la rs as m a y b e p re sc rib e d , o n o r b e fo re th e tw e n tie th d a y o f th e m o n th su c c e e d in g
su c h c a le n d a r m o n th o r p a rt th e re o f.
(2) A re g iste re d p e rso n p a y in g ta x u n d e r th e p ro v isio n s o f se c tio n 10 shall, fo r e a c h

q u a rte r o r p a rt th ereo f, fu rn ish , in su c h fo rm a n d m a n n e r as m a y b e p re sc rib e d , a retu rn ,
electro n ically , o f tu rn o v e r in th e S tate o r U n io n territory, in w a rd su p p lies o f g o o d s o r services
o r b o th , ta x p a y a b le a n d ta x p a id w ith in e ig h te e n d ay s a fte r th e e n d o f su c h q u arter.
(3) E v e ry re g iste re d p e rso n re q u ire d to d e d u c t ta x at so u rce u n d e r th e p ro v isio n s o f

sectio n 51 shall fu rn ish , in su ch fo rm an d m a n n e r as m a y b e p rescrib ed , a retu rn , electronically,
fo r th e m o n th in w h ic h su c h d e d u c tio n s h a v e b e e n m a d e w ith in ten d ay s a fte r th e e n d o f
su ch m o n th .
(4) E v e ry ta x a b le p e rs o n re g iste re d as an In p u t S e rv ic e D istrib u to r shall, fo r e v ery

c a le n d a r m o n th o r p a rt th ereo f, fu rn ish , in su c h fo rm a n d m a n n e r as m a y b e p re sc rib e d , a
retu rn , e lec tro n ically , w ith in th irte e n d ay s a fte r th e e n d o f su c h m o n th .
(5) E v e ry re g iste re d n o n -re sid e n t ta x a b le p e rso n shall, fo r e v e ry c a le n d a r m o n th o r

p a rt th e re o f, fu rn ish , in su c h fo rm an d m a n n e r as m a y b e p re sc rib e d , a re tu rn , elec tro n ically ,
w ith in tw e n ty day s a fte r th e e n d o f a c a le n d a r m o n th o r w ith in sev en d ay s a fte r th e la st d ay
o f th e p e rio d o f re g istra tio n sp e c ifie d u n d e r su b -se c tio n (1) o f se c tio n 27, w h ic h e v e r is
earlier.
(6 ) T h e C o m m issio n e r m ay, fo r re a so n s to b e re c o rd e d in w ritin g , b y n o tific a tio n ,

e x te n d th e tim e lim it fo r fu rn ish in g th e re tu rn s u n d e r this se c tio n fo r su c h cla ss o f re g iste re d
p erso n s as m a y b e sp e c ifie d th e re in :
P ro v id e d th a t an y e x te n sio n o f tim e lim it n o tifie d b y th e C o m m issio n e r o f S tate ta x o r

U n io n te rrito ry ta x shall b e d e e m e d to b e n o tifie d b y th e C o m m issio n er.
(7) E v e ry re g iste re d p e rso n , w h o is re q u ire d to fu rn ish a re tu rn u n d e r su b -se c tio n (1)

o r su b -se c tio n (2) o r su b -se c tio n (3) o r su b -se c tio n (5), shall p a y to th e G o v e rn m e n t th e tax
d u e as p e r su c h re tu rn n o t la te r th a n th e la st d a te o n w h ic h h e is re q u ire d to fu rn ish su ch
retu rn .
(8) E v e ry re g iste re d p e rs o n w h o is re q u ire d to fu rn ish a re tu rn u n d e r su b -se c tio n (1) o r

su b -se c tio n ( 2 ) sh all fu rn ish a re tu rn fo r e v e ry ta x p e rio d w h e th e r o r n o t an y su p p lies o f
g oo d s o r serv ices o r b o th h a v e b e e n m a d e d u rin g su c h tax perio d .
(9 ) S u b je c t to th e p ro v is io n s o f s e c tio n s 3 7 a n d 3 8 , if a n y r e g is te r e d p e rs o n
a fte r fu rn ish in g a re tu rn u n d e r su b -se c tio n (1 ) o r su b -se c tio n (2) o r su b -se c tio n (3 ) o r
su b -se c tio n (4) o r su b -se c tio n (5) d isc o v e rs an y o m issio n o r in c o rre c t p a rtic u la rs th erein ,
o th er th a n as a resu lt o f scrutiny, audit, in sp ectio n o r e n fo rcem en t activity b y th e tax authorities,
h e sh all re c tify su c h o m issio n o r in c o rre c t p a rtic u la rs in th e re tu rn to b e fu rn ish e d fo r th e
m o n th o r q u a rte r d u rin g w h ic h su c h o m issio n o r in c o rre c t p a rtic u la rs are n o tic e d , su b je c t to
p a y m e n t o f in te re st u n d e r th is A c t:
P ro v id e d th a t n o su c h re c tific a tio n o f an y o m issio n o r in c o rre c t p a rtic u la rs shall b e

allo w e d a fte r th e d u e d a te fo r fu rn ish in g o f re tu rn fo r th e m o n th o f S e p te m b e r o r se c o n d
q u a rte r fo llo w in g th e e n d o f th e fin a n c ia l y ear, o r th e actu a l d a te o f fu rn ish in g o f re le v a n t
ann u al re tu rn , w h ic h e v e r is earlier.
(1 0 ) A re g iste re d p e rso n sh all n o t b e a llo w e d to fu rn ish a re tu rn fo r a ta x p e rio d if th e

re tu rn fo r an y o f th e p re v io u s ta x p e rio d s h as n o t b e e n fu rn ish e d b y him .
40. Every registered person who has made outward supplies in the period between First return.
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. (!) Every registered person shall, subject to such conditions and restrictions as Claim of
may be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his input tax
credit and
return and such amount shall be credited on a provisional basis to his electronic credit provisional
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 person (hereafter Matching,
in this section referred to as the “recipient”) for a tax period shall, in such manner and within reversal and
reclaim of
such time as may be prescribed, be matched— input tax
credit.
(a) with the corresponding details of outward supply 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;
(b) with the integrated goods and services tax paid under section 3 of the Customs
51 of 1975. 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 3 of the 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 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 of input tax credit shall be communicated to the recipient
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 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 in excess on account of
duplication of claims 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), if the 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 in whose output tax liability any amount has been added under
sub-section (5) or sub-section (6), shall be liable to pay interest at the 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 in output tax liability is accepted 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 in which 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.
Matching, 43. (1) The details of every credit note relating to outward supply furnished by a
reversal and
registered person (hereafter in this section referred to as the “supplier”) for a tax period shall,
reclaim of
reduction in in such manner and within such time as may be prescribed, be matched—
output tax
liability.
(a) with the corresponding reduction in the claim for input 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.
(2) The claim for reduction in output tax liability by the supplier that matches with the
corresponding reduction in the 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.
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 in output tax liability that is found to be on
account of duplication of claims shall be added to the output tax liability of the supplier in his
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 in sub-section (9) of section 39.
(8) A supplier in whose output tax liability any amount has been added under
sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under
sub-section (1) of section 50 in respect of the amount so added from the date of such claim
for reduction in the output tax liability till the corresponding additions are made under the
said sub-sections.
(9) Where any reduction in output tax liability is accepted 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 in contravention of the provisions of
sub-section (7) shall be added to the output tax liability of the supplier in his return for the
month 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 Distributor, a person Annual return.
paying tax under section 51 or section 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 of sub-section (5) of section 35 shall furnish, electronically, the annual
return under sub-section (1) along with a copy of the 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
45. Every registered person who is required to furnish a return under sub-section (1) Final return.
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 section 39 or section 44 or Notice to
section 45, a notice shall be issued requiring him to furnish such return within fifteen days in return
defaulters.
such form and manner as may be prescribed.
47. (1) Any registered person who fails to furnish the details of outward or inward Levy of late
supplies required under section 37 or section 38 or returns required under section 39 or fee.
section 45 by the due date shall pay a late fee of one 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 or Union territory.
48. (1) The manner of approval of goods and services tax practitioners, their eligibility Goods and
conditions, duties and obligations, manner of removal and other conditions relevant for their services tax
practitioners.
functioning shall be such as may be prescribed.
(2) A registered person may authorise an approved goods and services tax practitioner
to furnish the details of outward supplies under section 37, the details of inward supplies
under section 38 and the return under section 39 or section 44 or section 45 in such manner
(3) Notwithstanding anything contained in sub-section (2), the responsibility for
correctness of any particulars furnished in the 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
P ayment of tax
49. (1) Every deposit made towards tax, interest, penalty, fee or any other amount Payment
by a of
person by internet banking or by using credit or debit cards or National Electronic Fund tax, interest,
penalty and
Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions other
and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such amounts.
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 in the 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
(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, if any, 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 payment of integrated tax;
(d) the Union territory tax shall first be utilised towards payment of Union territory
tax and the amount remaining, if any, may be utilised towards payment of integrated tax;
(e) the central tax shall not be utilised towards payment of State tax or Union
territory tax; and
( f the State tax or Union territory tax shall not be utilised towards payment of
central tax.
(6) The balance in the 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 his tax and other dues under this Act or the
rules made thereunder in the 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.
(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.
Interest on 50. (1) Every person who is liable to pay tax in accordance with the provisions of this
delayed Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government
payment of
tax.
within the period prescribed, shall for the period for which 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.
(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 Act, the Government
Tax deduction
may mandate,— at source.
(a) a department or establishm ent 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 if the 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 of tax specified above, the value of
supply shall be taken as the amount excluding the central tax, State tax, Union territory 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 of the month in which such deduction is made, in
(3) The deductor shall furnish to the deductee a certificate mentioning therein the
contract value, rate of deduction, amount deducted, amount paid to the Government and
such other particulars in such manner as may be prescribed.
(4) If any deductor fails to furnish to the deductee the certificate, after deducting the
tax at source, within five days of crediting the amount so deducted to the Government, the
deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day
after the expiry of such five days 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, of the tax deducted
and reflected in the return of the deductor furnished under sub-section (3) of section 39, in
(6) If any 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 section 74.
(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.
Collection of 52. (1) Notwithstanding anything to the contrary contained in this Act, every electronic
tax at source. commerce operator (hereafter in this section referred to as the “operator”), not being an
agent, 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.
Explanation.— For the purposes of this sub-section, the expression “net value of
taxable 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 by the aggregate value of taxable
supplies returned to the 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.
(5) 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 of goods or services or both returned through
it, and the amount collected under sub-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) shall furnish
an annual statement, 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, before the thirty first day of December
following the end of such financial year.
(6) If any operator after furnishing a statement under sub-section (4) 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 statement to be furnished for the month during which such omission
or incorrect particulars are noticed, subject to payment of interest, as specified in
sub-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 is earlier.
(7) The supplier who has supplied the goods or services or both through the operator
shall claim credit, in his electronic cash ledger, of the amount collected and reflected in the
statement of the operator furnished under sub-section (4), in such manner as may be
prescribed.
(8) The details of supplies furnished by every operator under sub-section (4) shall be
matched with the 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) W here 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
sub-section (9) and which is not rectified by the supplier in his valid return or the operator in
his statement for the month in which discrepancy is communicated, shall be added to the
output tax liability of the said supplier, where the value of outward supplies 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
(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 by the 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 payment of tax dues Transfer of
under the Integrated Goods and Services Tax Act in accordance with the provisions of input tax
credit.
sub-section (5) of section 49, as reflected in the valid return furnished under sub-section (1)
of section 39, the amount collected as central tax shall stand reduced by an amount equal to
such credit so utilised and the Central Government shall transfer an amount equal to the
amount so reduced from the central tax account to the integrated tax account in such manner
and within such time as may be prescribed.
CHAPTER XI
Refunds
54. (1) Any person claiming refund of any tax and interest, if any, paid on such tax or Refund of tax.
any other amount paid by him, may 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 in the return furnished under section 39 in such manner as may be prescribed.
(2) A specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and Immunities)
46 of 1947. Act, 1947, Consulate or Embassy of foreign countries or any other person or class of persons,
as notified under section 55, entitled to a refund of tax 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 fully 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, if the supplier of
goods or services or both avails of drawback in respect of central tax or 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
(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 or other 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 to the Fund referred to in section 57.
(6) Notwithstanding anything contained in sub-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, in such 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 in sub-section (5), the refundable amount
shall, instead of being credited to the 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 of tax 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;
(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 to the contrary contained in any judgment, decree,
order or direction of the Appellate Tribunal or any court or in any other provisions of this 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 or who is required to pay any tax, interest or penalty, which
has not been stayed by any court, Tribunal or Appellate Authority by the 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 is the 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 in the 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.
(13) Notwithstanding anything to the contrary contained in this section, the amount
of advance tax deposited by a casual 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 in force,
furnished all the 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.
(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) in the 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) if the 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) if the 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 despatch 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;
(e) in the case of refund of unutilised input tax credit under
sub-section (5), 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 or the rules
made thereunder, the date of adjustment 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.
Refund in 55. The Government may, on the recommendations of the Council, by notification,
certain cases. specify any specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and Immunities)
Act, 1947, Consulate or Embassy of foreign countries and any other person or class of 46 of 1947.
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.
Interest on 56. If any tax ordered to be refunded under sub-section (5) of section 54 to any
delayed applicant is not refunded within sixty days from the date of receipt of application under sub
refunds. section (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 or court 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 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 till the date of refund.
Explanation.—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 or by the court shall be deemed to be an order passed under the said
sub-section (5).
57. The Government shall constitute a Fund, to be called the Consumer Welfare Fund Consumer
and there shall be credited to the Fund,— Welfare 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,
in such manner as may be prescribed.
58. (1) All sums credited to the Fund shall be utilised by the Government for the Utilisation of
welfare of the consumers in such manner as may be prescribed. Fund.
(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
A ssessment
59. Every registered person shall self-assess the taxes payable under this Act and Self
furnish a return for each tax period as specified under section 39. assessment.
60. (1) Subject to the provisions of sub-section (2), where the taxable person is unable Provisional
to determine the value of goods or services or both or determine the rate of tax applicable assessment.
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 of tax 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 be finally assessed and the amount of tax 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:
Provided that the period specified in this sub-section may, on sufficient cause being
shown and for reasons to be recorded in writing, be extended by the Joint Commissioner or
Additional Commissioner for a further period not exceeding six months and by the
Commissioner for such further period not exceeding four years.
(4) The registered person shall be liable to pay interest on any tax payable on the
supply of goods or services or both under provisional assessment but not paid on the due
date specified under sub-section (7) of section 39 or the rules made thereunder, at the rate
specified under sub-section (1) of section 50, from the first day after the due date of payment
of tax in respect of the said supply of goods or services or both till the date of actual
payment, whether such amount is paid before or after the issuance of order for final
assessment.
(5) Where the registered person is entitled to a refund consequent to the order of final
assessment under sub-section (5), subject to the provisions of sub-section (8) of section 54,
interest shall be paid on such refund as provided in section 56.
Scrutiny of 61. (1) The proper officer may scrutinize the return and related particulars furnished by
returns.
the registered person to verify the correctness of the return and inform him of the discrepancies
noticed, if any, in such manner as may be prescribed and seek his explanation thereto.
(2) In case the explanation is found acceptable, the registered person shall be informed
accordingly and no further action shall be taken in this regard.
(5) In case no satisfactory explanation is furnished within a period of thirty days of
being informed by the proper officer or such further period as may be permitted by him or
where the registered person, after accepting the discrepancies, fails to take the corrective
measure in his return for the month in which the discrepancy is accepted, the proper officer
may initiate appropriate action including those under section 65 or section 66 or section 67,
or proceed to determine the tax and other dues under section 73 or section 74.
Assessment of 62. (1) Notwithstanding anything to the contrary contained in section 73 or section 74,
non-filers of where a registered person fails to furnish the return under section 39 or section 45, even after
returns. the service of a notice under section 46, the proper officer may proceed to assess the tax
liability of the said person to the best of his judgement taking into account all the relevant
material which is available or which he has gathered and issue an assessment order within a
period of five years from the date specified under section 44 for furnishing of the annual
return for the financial year to which the tax not paid relates.
(2) Where the registered person furnishes a valid 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 but the liability for paym ent of interest under
sub-section (1) of section 50 or for payment of late fee under section 47 shall continue.
Assessment of 63. Notwithstanding anything to the contrary contained in section 73 or section
unregistered 74, where a taxable person fails to obtain registration even though liable to do so or whose
persons.
registration has been cancelled under sub-section (2) of 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 judgment 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 of the annual
return for the financial year to which the tax not paid relates:
Provided that no such assessment order shall be passed without giving the person an
opportunity of being heard.
Summary 64. (1) The proper officer may, on any evidence showing a tax liability of a person
assessment in coming to his notice, with the previous permission of Additional Commissioner or
certain
Joint Commissioner, proceed to assess the tax liability of such person to protect the interest
special cases.
of revenue and issue an 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 is erroneous, he may withdraw
such order and follow the procedure laid down in section 73 or section 74.
CHAPTER XIII
A udit
65. (1) The Commissioner or any officer authorised by him, by way of a general or a Audit by tax
specific order, may undertake audit of any registered person for such period, at such frequency authorities.
and in such manner as may be prescribed.
(2) The officers referred to in sub-section (1) may conduct audit at the place of business
of the registered person or in their office.
(5) 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 is satisfied 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
of audit” shall mean the date on which the records and other documents, called for by the tax
authorities, are made available by the registered person or the 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 of audit, 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 refunded, or input tax credit wrongly availed or utilised, the
proper officer may initiate action under section 73 or section 74.
66. (1) If at any stage of scrutiny, inquiry, investigation or any other proceedings Special audit.
before him, any officer not below the rank of 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 the chartered accountant or cost accountant or for any
material and sufficient reason, extend the said period by a further period of ninety days.
(5) The provisions of sub-section (1) shall have effect notwithstanding that the
accounts of the registered person have been audited under any other provisions of this 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 of the 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 section 74.
c h a p t e r XIV
Inspection , search , seizure and arrest
Power of
67. (1) Where the proper officer, not below the rank of Joint Commissioner, has reasons
inspection,
search and to believe that—
seizure.
(a) a taxable person has suppressed any transaction relating 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,
he may authorise in writing any other officer of central tax to inspect any places of business
of the taxable person or the persons engaged in the 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 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 central 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 deal 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.
(5) The documents, books or things referred to in sub-section (2) or any other
documents, books or things produced by a taxable 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 of the 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 therefrom 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 or on 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 a further period not exceeding six months.
(8) The Government may, having regard to the perishable or hazardous nature of any
goods, depreciation in the 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 by the proper officer in such manner as may be prescribed.
(9) Where any goods, being goods specified under sub-section (8), have been seized
by a 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.
2 of 1974. (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 if for 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 is
attempting 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. (1) The Government may require the person in charge of a conveyance carrying Inspection of
any consignment of goods of value exceeding such amount as may be specified to carry with goods in
movement.
him such documents and such devices as may be prescribed.
(2) The details of documents required to be carried under sub-section (1) shall be
validated in such manner as may be prescribed.
(8) Where any conveyance referred to in sub-section (1) is intercepted by the proper
officer at any place, he may require the person in charge of the said conveyance to 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 person has committed Power to
any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of arrest.
sub-section (1) of section 132 w hich 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 central 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.
(5) Subject to the provisions of the Code of Criminal Procedure, 1973,— 2 of 1974.
(a) where a person is arrested under sub-section (1) for any offence specified
under sub-section (4) of section 132, he shall be admitted to bail or 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 bail or otherwise, have the same powers and be subject to the same provisions as
an officer-in-charge of a police station.
Power to 70. (1) The proper officer under this Act shall have power to summon any person
summon whose attendance he considers necessary either to give evidence or to produce a document
persons to
or any other thing in any inquiry in the same manner, as provided in the case of a civil court
give evidence
and produce under the provisions of the Code of Civil Procedure, 1908. 5 of 1908
documents.
(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a “judicial
proceedings” within the meaning of section 193 and section 228 of the Indian Penal Code. 45 of 1860.
Access to 71. (1) Any officer under this Act, authorised by the proper officer not below the rank
business of Joint Commissioner, shall have 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.
(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 nom inated 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;
(iv) cost audit report, if any, under section 148 of the Companies Act, 2013; 18 of 2013.
(v) the income-tax audit report, if any, under section 44AB of the Income-tax
Act, 1961; and 43 of 1961.
(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.
Officers to 72. (1) All officers of Police, Railways, Customs, and those officers engaged in the
assist proper
officers.
collection of land revenue, including village officers, officers of State tax and officers of
Union 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
D emands and recovery
73. (1) Where it appears to the proper officer that any tax has not been paid or short
Determination
paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised of tax not
paid or short
for any reason, other than the reason of fraud or any wilful-misstatement or suppression of paid or
facts to evade tax, he shall serve notice on the person chargeable with tax which has not been erroneously
so paid or which has been so short paid or to whom the refund has erroneously been made, refunded or
or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why input tax
credit wrongly
he should not pay the amount specified in the notice along with interest payable thereon availed or
under section 50 and a penalty leviable under the provisions of this Act or the rules made utilised for
thereunder. any reason
other than
(2) The proper officer shall issue the notice under sub-section (1) at least three months fraud or any
prior to the time limit specified in sub-section (10) for issuance of order. wilful-
misstatement
(5) Where a notice has been issued for any period under sub-section (1), the proper or suppression
officer may serve a statement, containing the details of tax not paid or short paid or erroneously of facts.
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 (5), 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 (5), in respect of the
tax so paid or any penalty payable under the provisions of this Act or the rules made
thereunder.
(7) W here the proper officer is of the opinion that the amount paid under
sub-section (5) falls short of the 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 (5)
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, if any, 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.
(10) 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.
(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.
Determination 74. (1) Where it appears to the proper officer that any tax has not been paid or short
of tax not paid or erroneously refunded or where input tax credit has been wrongly availed or utilised
paid or short
paid or by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall
erroneously serve notice on the person chargeable with tax which has not been so paid or which has been
refunded or so short paid or to whom the refund has erroneously been made, or who has wrongly availed
input tax or utilised input tax credit, requiring him to show cause as to why he should not pay the
credit wrongly
availed or amount specified in the notice along with interest payable thereon under section 50 and a
utilised by penalty equivalent to the tax specified in the notice.
reason of
fraud or any (2) The proper officer shall issue the notice under sub-section (1) at least six months
wilful- prior to the time limit specified in sub-section (10) for issuance of order.
misstatement
or suppression (5) Where a notice has been issued for any period under sub-section (1), the proper
of facts. 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 statement under sub-section (5) shall be deemed to be service 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 w ith 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 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), in respect of the tax so paid or any penalty payable under the provisions of
this Act or the rules made thereunder.
(7) W here the proper officer is of the opinion that the amount paid under
sub-section (5) falls short of the 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, if any, made by the
person chargeable with tax, determine the amount of tax, 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. of such tax within thirty days of communication of the order, all proceedings in respect
of the said notice shall be deemed to be concluded.
Explanation 1.— For the purposes of section 73 and this section,—
(i) the expression “all proceedings in respect of the 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 sections 122,
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
or the 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 by an order of a court General
or Appellate Tribunal, the period of such stay shall be excluded in computing the period provisions
specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74, relating to
determination
as the case may be. of tax.
(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 if the notice were issued under
sub-section (1) of section 73.
(3) Where any order is required to be issued in pursuance of the direction of the
Appellate Authority or Appellate Tribunal or a court, 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, if sufficient cause is shown by the person chargeable with
tax, grant time to the said person and adjourn the hearing for reasons to be recorded in
writing:
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 or Appellate Tribunal or court modifies the amount
of tax determined by the 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, if the 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 or the Appellate Tribunal or the High
court has given its decision which is prejudicial 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 of the Appellate Authority or the Appellate Tribunal 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 in computing 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 section 74, 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.
Tax collected 76. (1) Notwithstanding anything to the contrary contained in any order or direction
but not paid to
of any Appellate Authority or Appellate Tribunal or court or in any other provisions of this
Government.
Act or the 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) W here any am ount is required to be paid to the G overnm ent 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.
(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 of such 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) or sub-section (3) shall
be adjusted against the tax payable, if any, by the 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 or, as the case Tax
may be, the Central tax and the Union territory tax on a transaction considered by him to be wrongfully
collected and
an intra-State supply, but which is subsequently held to be an inter-State supply, shall be paid to
refunded the amount of taxes so paid in such manner and subject to such conditions as may Central
be prescribed. Government
or State
(2) A registered person who has paid integrated tax on a transaction considered by him Government.
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 central tax and State tax or, as the case
may be, the Central tax and the Union territory tax payable.
78. Any amount payable by a taxable person in pursuance of an order passed under Initiation of
this Act shall be paid by such person within a period of three months from the date of service recovery
proceedings.
of such order failing which recovery proceedings shall be initiated:
Provided that where the proper officer considers it expedient 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 under any of the Recovery of
provisions of this Act or the rules made thereunder is not paid, the proper officer shall tax.
proceed to recover the amount by one or more of the following modes, namely:—
(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 of any
entry, endorsement or the 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 in the 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 in pursuance of the
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 of the notice issued under sub-clause (i) shall be personally liable to the Government
to the extent of the 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 in default, at the 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 pay to the
Government any such money or part thereof;
(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 of such 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 if it were an arrear of land revenue;
( f Notwithstanding anything contained in the Code of Criminal Procedure,

1973, the proper officer may file an application to the appropriate Magistrate and such 2 of 1974.
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.
(5) Where any amount of tax, interest or penalty is payable by a person to the
Government under any of the provisions of this Act or the rules made thereunder and which
remains unpaid, the proper officer of State tax or Union territory 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 State tax or Union territory tax and credit the amount so recovered to the account of
the Government.
(4) Where the amount recovered under sub-section (5) 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. O n an a p p lic a tio n file d b y a ta x a b le p e rso n , th e C o m m issio n e r m ay, fo r re a so n s to Payment of

b e re c o rd e d in w ritin g , e x te n d th e tim e fo r p a y m e n t o r a llo w p a y m e n t o f an y am o u n t d u e tax and other
amount in
u n d e r th is A c t, o th e r th a n th e a m o u n t d u e as p e r th e lia b ility se lf-a sse sse d in an y retu rn , b y instalments.
su c h p e rso n in m o n th ly in sta lm e n ts n o t e x c e e d in g tw e n ty four, su b je c t to p a y m e n t o f in te re st
u n d e r se c tio n 50 a n d su b je c t to su c h c o n d itio n s a n d lim ita tio n s as m a y b e p rescrib ed :
P ro v id e d th a t w h e re th e re is d e fa u lt in p a y m e n t o f an y o n e in sta lm e n t o n its d u e d ate,

th e w h o le o u tsta n d in g b a la n c e p a y a b le o n su c h d a te sh all b e c o m e d u e a n d p a y a b le fo rth w ith
a n d shall, w ith o u t an y fu rth e r n o tic e b e in g se rv e d o n th e p e rso n , b e lia b le fo r recovery.
81. W h e re a p e rso n , a fte r an y a m o u n t h as b e c o m e d u e fro m h im , cre a te s a c h a rg e o n o r Transfer of

parts w ith th e p ro p e rty b e lo n g in g to h im o r in h is p o sse ssio n b y w a y o f sale, m o rtg ag e, property to
be void in
ex c h a n g e , o r an y o th e r m o d e o f tra n sfe r w h a tso e v e r o f an y o f h is p ro p e rtie s in fa v o u r o f any
certain cases.
o th e r p e rs o n w ith th e in te n tio n o f d e fra u d in g th e G o v e rn m e n t re v e n u e , su c h c h a rg e o r
tra n sfe r sh all b e v o id as a g a in st an y c la im in re sp e c t o f an y ta x o r a n y o th e r su m p a y a b le b y
th e sa id p erson:
P ro v id e d th at, su c h c h a rg e o r tra n sfe r sh all n o t b e v o id if it is m a d e fo r a d eq u ate

co n sid e ra tio n , in g o o d fa ith a n d w ith o u t n o tic e o f th e p e n d e n c y o f su c h p ro c e e d in g s u n d e r
this A c t o r w ith o u t n o tic e o f su c h ta x o r o th e r su m p a y a b le b y th e sa id p e rso n , o r w ith th e
p re v io u s p e rm issio n o f th e p ro p e r officer.
82. N o tw ith sta n d in g a n y th in g to th e c o n tra ry c o n ta in e d in an y la w fo r th e tim e b e in g Tax to be

31 of 2016. in fo rce, sa v e as o th e rw ise p ro v id e d in th e In so lv e n c y a n d B a n k ru p tc y C o d e, 2 0 1 6 , any first charge
on property.
am o u n t p a y a b le b y a ta x a b le p e rs o n o r a n y o th e r p e rs o n o n a c c o u n t o f tax , in te re st o r
p e n a lty w h ic h h e is lia b le to p a y to th e G o v e rn m e n t shall b e a first c h a rg e o n th e p ro p e rty o f
su c h ta x a b le p e rs o n o r su c h p erso n .
83. (1) W h e re d u rin g th e p e n d e n c y o f an y p ro c e e d in g s u n d e r se c tio n 6 2 o r se c tio n 63 Provisional

o r se c tio n 6 4 o r se c tio n 67 o r se c tio n 73 o r se c tio n 74, th e C o m m issio n e r is o f th e o p in io n th at attachment to
protect
fo r th e p u rp o se o f p ro te c tin g th e in te re st o f th e G o v e rn m e n t re v e n u e , it is n e c e ssa ry so to
revenue in
do, h e m ay, b y o rd e r in w ritin g a tta c h p ro v isio n a lly an y p ro p erty , in c lu d in g b a n k acco u n t, certain cases.
b e lo n g in g to th e ta x a b le p e rs o n in su c h m a n n e r as m a y b e p rescrib ed .
(2) E v e ry su c h p ro v isio n a l a tta c h m e n t sh all c e a se to h a v e e ffe c t a fte r th e ex p iry o f a

p e rio d o f o n e y e a r fro m th e d a te o f th e o rd e r m a d e u n d e r su b -se c tio n (1).
84. W h e re an y n o tic e o f d e m a n d in re sp e c t o f an y tax , p en alty , in te re st o r an y o th e r Continuation

am o u n t p a y a b le u n d e r th is A ct, (h e re a fte r in th is se c tio n re fe rre d to as “G o v e rn m e n t d u e s” ), and validation
of certain
is se rv e d u p o n an y ta x a b le p e rs o n o r an y o th e r p e rso n a n d a n y ap p eal o r re v isio n ap p lic a tio n
recovery
is file d o r an y o th e r p ro c e e d in g s is in itia te d in re s p e c t o f su c h G o v e rn m e n t d u es, th e n — proceedings.
(a ) w h e re su c h G o v e rn m e n t d u es are e n h a n c e d in su c h ap p eal, re v isio n o r o th e r
p ro c e e d in g s, th e C o m m iss io n e r sh a ll se rv e u p o n th e ta x a b le p e rs o n o r a n y o th e r
p e rso n a n o th e r n o tic e o f d e m a n d in re sp e c t o f th e am o u n t b y w h ic h su c h G o v e rn m e n t
d u es are e n h a n c e d a n d an y re c o v e ry p ro c e e d in g s in re la tio n to su c h G o v e rn m e n t
du es as are c o v e re d b y th e n o tic e o f d e m a n d se rv e d u p o n h im b e fo re th e d isp o sa l o f
su c h a p p eal, re v isio n o r o th e r p ro c e e d in g s m ay, w ith o u t th e se rv ic e o f an y fre sh
n o tic e o f d e m a n d , b e c o n tin u e d fro m th e sta g e at w h ic h su c h p ro c e e d in g s sto o d
im m e d ia te ly b e fo re su c h d isp o sal;
(b) w h e re su c h G o v e rn m e n t d u es are re d u c e d in su c h ap p eal, re v isio n o r in o th e r

p ro c e e d in g s —
(i) it sh all n o t b e n e c e ssa ry fo r th e C o m m issio n e r to se rv e u p o n th e tax ab le

p e rso n a fre sh n o tic e o f d em an d ;
(ii) th e C o m m issio n e r shall g iv e in tim a tio n o f su c h re d u c tio n to h im a n d to

th e a p p ro p ria te au th o rity w ith w h o m re c o v e ry p ro c e e d in g s is p e n d in g ;
( iii ) an y re c o v e ry p ro c e e d in g s in itia te d o n th e b asis o f th e d e m a n d se rv ed

u p o n h im p rio r to th e d isp o sa l o f su c h ap p eal, re v isio n o r o th e r p ro c e e d in g s m a y
be continued in relation to the amount so reduced from the stage at which such
proceedings stood immediately before such disposal.
c h a p t e r XVI
Liability to pay in certain cases
Liability in 85. (1) Where a taxable person, liable to pay tax under this Act, transfers his business
case of transfer in whole or in part, by sale, gift, lease, leave and license, hire or in any other manner
of business. whatsoever, the taxable person and the person to whom the business is so 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 upto 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.
Liability of 8 6 . Where an agent supplies or receives any taxable goods on behalf of his principal,
agent and such agent and his principal shall, jointly and severally, be liable to pay the tax payable on
principal.
such goods under this Act.
Liability in 87. (1) When two or more companies are amalgamated or merged in pursuance of an
case of order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to
amalgamation
or merger of the date of the order and any two or more of such companies have supplied or received any
companies. goods or services or both to 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.
Liability in 8 8 . (1) When any company is being wound up whether under the orders of a court or
case of
company in
Tribunal or otherwise, every person appointed as receiver of any assets of a company
liquidation. (hereafter in this section referred to as the “liquidator”), shall, within 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 liquidator within three months from the date on which he
receives intimation of the appointment of the 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.
(5) 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 in the 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.
Liability of 89. (1) Notwithstanding anything contained in the Companies Act, 2013, where any 18 of 2013.
directors of tax, interest or penalty due from a private company in respect of any supply of goods or
private
company. services or both for any period cannot be recovered, then, every person 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 law for the time being Liability of
in force, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and partners of
each of the partners of the firm shall, jointly and severally, be liable for such payment: firm to pay
tax.
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 in writing
and such partner shall be liable to pay tax, interest or penalty due up to the date of his
retirement whether determined or not, on that date:
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 or penalty is payable Liability of
under this Act is carried on by any guardian, trustee or agent of a minor or other incapacitated guardians,
trustees, etc.
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 it would 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 person owning a business Liability of
in respect of which any tax, interest or penalty is payable under this Act is under the control Court of
of the Court of Wards, the Administrator General, the Official Trustee or any receiver or Wards, etc.
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 manner and to the same extent as it would 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.
31of 2016. 9 3 . (1 )
Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, Special
where a person, liable to pay tax, interest or penalty under this Act, dies, then— provisions
regarding
(a) if a business carried on by the person is continued after his death by his legal liability to
pay tax,
representative or any other person, such legal representative or other person, shall be interest or
liable to pay tax, interest or penalty due from such person under this Act; and penalty in
certain 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 is determined after his death.
(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a 31 of 2016.
taxable person, liable to 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 or the
association of persons is partitioned amongst the various 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 up to the time of the partition
whether such tax, penalty or interest has been determined before partition but has remained
unpaid or is determined after the partition.
taxable person, liable to pay tax, interest or penalty under this Act, is a firm, and the firm is
dissolved, then, every person who was a partner shall, jointly and severally, be liable to pay
the tax, interest or penalty due from the firm under this Act up to the time of dissolution
whether such tax, interest or penalty has been determined before the dissolution, but has
remained unpaid or is determined after dissolution.
taxable person liable to pay tax, interest or penalty under this Act,—
(a) is the guardian of a ward on whose behalf the business is carried on by the
guardian; or
(b) is a trustee who carries on the business under a trust for a beneficiary,
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 upto the 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 is determined
thereafter.
Liability in 94. (1) Where a taxable person is a firm or an association of persons or a Hindu
other cases. Undivided Family and such firm, association or family has discontinued business—
(a) the tax, interest or penalty payable under this Act by such firm, association or
family up to the date of such discontinuance may be determined as if no such
discontinuance had taken 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 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.
(5) The provisions of sub-section (1) shall, so far as may be, apply where the taxable
person, being a firm or association of persons is dissolved or where 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 under the provisions
6 of 2009. of the 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
A dvance ruling
95. In this Chapter, unless the context otherwise requires,— Definitions.
(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
referred to in section 99;
(c) “applicant” means any person registered or desirous of obtaining registration
under this Act;
(d) “application” means an application made to the A uthority under
(e) “Authority” means the Authority for Advance Ruling referred to in
section 96.
96. Subject to the provisions of this Chapter, for the purposes of this Act, the Authority Authority for
for advance ruling constituted under the provisions of a State Goods and Services Tax Act or advance
ruling.
Union Territory Goods and Services Tax Act shall be deemed to be the Authority for advance
ruling in respect of that State or Union territory.
97. (1) An applicant desirous of obtaining an advance ruling under this Chapter may Application
make an application in such form and manner and accompanied by such fee as may be for advance
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 of a 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 copy thereof to be Procedure on
forwarded to the concerned officer and, if necessary, call upon him to furnish the relevant receipt of
application.
records:
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.
(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 decided 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.
(5) 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 as may be placed before it by the applicant or obtained by the
Authority and after providing an opportunity of being 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.
Appellate 99. Subject to the provisions of this Chapter, for the purposes of this Act, the Appellate
Authority for Authority for Advance Ruling constituted under the provisions of a State Goods and Services
Advance
Tax Act or a Union Territory Goods and Services Tax Act shall be deemed to be the Appellate
Ruling.
Authority in respect of that State or Union territory.
Appeal to 100. (1) The concerned officer, the jurisdictional officer or an applicant aggrieved by
Appellate any advance ruling pronounced under sub-section (4) of section 98, may appeal to the
Authority.
Appellate Authority.
(2) Every appeal under this section shall be filed 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.
(5) Every appeal under this section shall be in such form, accompanied by such fee and
verified in such manner as may be prescribed.
Orders of 101. (1) The Appellate Authority may, after giving the parties to the appeal or reference
Appellate
Authority.
an opportunity of being heard, pass such order as it thinks fit, confirming or modifying the
ruling 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.
(5) 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 of the advance ruling pronounced by the Appellate Authority duly signed
by the Members and certified in such 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 order passed by it Rectification
under section 98 or section 101, so as to rectify any error apparent on the face of the record, of advance
ruling.
if 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, 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.
103. (1) The advance ruling pronounced by the Authority or the Appellate Authority Applicability
under this Chapter shall be binding 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) W here the Authority or the Appellate Authority finds that advance Advance
ruling pronounced by it under sub-section (4) of section 98 or under sub-section (1) of ruling to be
void in
section 101 has been obtained by the applicant or the appellant by fraud or suppression of certain
material facts or misrepresentation of facts, it may, by order, declare such ruling to be void circumstances.
ab-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.
Explanation.—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 purpose of exercising Powers of
its powers regarding— Authority
and Appellate
(a) discovery and inspection; Authority.
(b) enforcing the attendance of any person and examining him on oath;
(c) issuing commissions and compelling production of books of account
and other records,
5 of 1908. have all the powers of a civil court under the Code of Civil Procedure, 1908.
(2) The Authority or the 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
2 of 1974. Procedure, 1973, and every proceeding before the Authority or the Appellate Authority shall
be deemed to be a judicial proceedings within the meaning of sections 193 and 228, and for
45 of 1860. the purpose of section 196 of the Indian Penal Code.
106. The Authority or the Appellate Authority shall, subject to the provisions of this Procedure of
Chapter, have power to regulate its own procedure. Authority and
Appellate
Authority.
c h a p t e r XVIII
Appeals and revision
Appeals to 107. (!) Any person aggrieved by any decision or order passed under this Act or the
Appellate State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an
Authority.
adjudicating authority may appeal to such Appellate 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 State tax or the Commissioner of Union territory tax, call for and examine the record of any
proceedings in which an adjudicating authority has passed any decision or order under this
Act or the State Goods and Services Tax Act or the Union Territory 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 of the said decision or order as may be specified
by the Commissioner in his order.
(5) Where, in pursuance of an order under sub-section (2), the authorised officer
makes an application to the Appellate Authority, such application shall be dealt with by the
Appellate Authority as if it were an appeal made against the decision or order of the
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
(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.
(7) Where the appellant has paid the 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, if sufficient cause is shown 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 in the grounds of appeal, if it is satisfied 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 it thinks 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:
P ro v id e d th a t an o rd e r e n h a n c in g an y fe e o r p e n a lty o r fin e in lie u o f c o n fisc a tio n o r

co n fisc a tin g g o o d s o f g re a te r v a lu e o r re d u c in g th e am o u n t o f re fu n d o r in p u t tax c re d it shall
n o t b e p a ss e d u n le ss th e a p p e lla n t h as b e e n g iv e n a re a s o n a b le o p p o rtu n ity o f sh o w in g
c au se a g a in st th e p ro p o s e d o rd e r:
P ro v id e d fu rth e r th a t w h e re th e A p p e lla te A u th o rity is o f th e o p in io n th a t an y ta x has

n o t b e e n p a id o r sh o rt-p a id o r e rro n e o u sly re fu n d e d , o r w h e re in p u t tax c re d it h as b e e n
w ro n g ly a v a ile d o r u tilise d , n o o rd e r re q u irin g th e a p p e lla n t to p a y su c h tax o r in p u t ta x cred it
shall b e p a ss e d u n le ss th e a p p e lla n t is g iv e n n o tic e to sh o w c a u se a g a in st th e p ro p o se d
o r d e r a n d th e o r d e r is p a s s e d w ith in th e tim e lim it s p e c if ie d u n d e r s e c tio n 7 3 o r
sec tio n 74.
(12) T h e o rd e r o f th e A p p e lla te A u th o rity d isp o sin g o f th e ap p eal sh all b e in w ritin g

a n d sh all state th e p o in ts fo r d e te rm in a tio n , th e d e c isio n th e re o n a n d th e rea so n s fo r su ch
d ecisio n .
(1 3 ) T h e A p p e lla te A u th o rity shall, w h e re it is p o ss ib le to d o so, h e a r a n d d e c id e e v ery

ap p eal w ith in a p e rio d o f o n e y e a r fro m th e d a te o n w h ic h it is filed:
P ro v id e d th a t w h e re th e issu a n c e o f o rd e r is sta y e d b y an o rd e r o f a c o u rt o r T rib u n al,

th e p e rio d o f su c h stay shall b e e x c lu d e d in c o m p u tin g th e p e rio d o f o n e year.
(1 4 ) O n d isp o sa l o f th e ap p eal, th e A p p e lla te A u th o rity shall c o m m u n ic a te th e o rd e r

p a ss e d b y it to th e ap p e lla n t, re s p o n d e n t a n d to th e a d ju d ic a tin g authority.
(1 5 ) A c o p y o f th e o rd e r p a ss e d b y th e A p p e lla te A u th o rity sh all also b e sen t to th e

ju ris d ic tio n a l c o m m is s io n e r o r th e a u th o rity d e s ig n a te d b y h im in th is b e h a lf a n d th e
jurisd ictio n al C o m m issio n er o f State tax o r C o m m issio n er o f U n io n T erritory Tax o r an authority
d e sig n a te d b y h im in this b eh alf.
( 1 6 ) E v e ry o rd e r p a s s e d u n d e r th is s e c tio n s h a ll, s u b je c t to th e p r o v is io n s o f
sec tio n 108 o r se c tio n 113 o r se c tio n 117 o r se c tio n 118 b e fin al a n d b in d in g o n th e p arties.
108. (1) S u b je c t to th e p ro v isio n s o f se c tio n 121 a n d an y ru le s m a d e th ereu n d er,Powers

th e of
R ev isio n a l A u th o rity m ay, o n h is o w n m o tio n , o r u p o n in fo rm a tio n re c e iv e d b y h im o r o n Revisional
Authority.
re q u e st fro m th e C o m m issio n e r o f S tate tax, o r th e C o m m issio n e r o f U n io n te rrito ry tax , call
fo r a n d e x a m in e th e re c o rd o f an y p ro c e e d in g s, a n d if h e co n sid e rs th a t an y d e c isio n o r o rd e r
p a ss e d u n d e r this A c t o r u n d e r th e S tate G o o d s a n d S erv ices T ax A c t o r th e U n io n T errito ry
G o o d s a n d S erv ices Tax A c t b y an y o ffic e r su b o rd in a te to h im is erro n e o u s in so fa r as it is
p re ju d ic ia l to th e in te re st o f re v e n u e a n d is ille g a l o r im p ro p e r o r h as n o t ta k e n in to a c co u n t
certa in m a te ria l facts, w h e th e r a v a ila b le at th e tim e o f is su a n c e o f th e sa id o rd e r o r n o t o r in
c o n se q u e n c e o f an o b se rv a tio n b y th e C o m p tro lle r a n d A u d ito r G e n e ra l o f In d ia, h e m ay, if
n ecessary , stay th e o p e ra tio n o f su c h d e c isio n o r o rd e r fo r su c h p e rio d as h e d e e m s fit an d
a fte r g iv in g th e p e rs o n c o n c e rn e d an o p p o rtu n ity o f b e in g h e a rd a n d a fte r m a k in g su ch
fu rth e r in q u iry as m a y b e n e cessary , p a ss su c h o rder, as h e th in k s ju s t a n d p ro p er, in c lu d in g
en h a n c in g o r m o d ify in g o r an n u llin g th e sa id d e c isio n o r order.
(2) T h e R e v isio n a l A u th o rity shall n o t e x e rc ise an y p o w e r u n d e r su b -se c tio n (1), if—
(a ) th e o rd e r h as b e e n su b je c t to an ap p eal u n d e r se c tio n 107 o r se c tio n 112 o r

se c tio n 117 o r se c tio n 118; o r
(b) th e p e rio d sp e c ifie d u n d e r su b -se c tio n (2) o f se c tio n 107 h as n o t y e t e x p ire d

o r m o re th a n th re e y e a rs h a v e e x p ire d a fte r th e p a ssin g o f th e d e c isio n o r o rd e r so u g h t
to b e re v ise d ; o r
(c) th e o rd e r h as a lread y b e e n ta k e n fo r re v isio n u n d e r th is se c tio n at an e a rlie r

stag e; o r
(d) th e o rd e r h as b e e n p a ss e d in e x e rc ise o f th e p o w e rs u n d e r su b -se c tio n (1):

P ro v id e d th a t th e R e v isio n a l A u th o rity m a y p a ss an o rd e r u n d e r su b -se c tio n (1) o n

an y p o in t w h ic h h a s n o t b e e n ra ise d a n d d e c id e d in an ap p eal re fe rre d to in c la u se (a ) o f
su b -se c tio n (2), b e fo re th e ex p iry o f a p e rio d o f o n e y e a r fro m th e d a te o f th e o rd e r in su ch
ap p e a l o r b e fo re th e e x p iry o f a p e rio d o f th re e y e a rs re fe rre d to in c la u s e (b) o f th a t
su b -sectio n , w h ic h e v e r is la te r.
(5) E v e ry o rd e r p a ss e d in re v isio n u n d e r su b -se c tio n (1) shall, su b je c t to th e p ro v isio n s

o f se c tio n 113 o r se c tio n 117 o r se ctio n 118, b e fin a l a n d b in d in g o n th e p arties.
(4) If th e sa id d e c isio n o r o rd e r in v o lv e s an is su e o n w h ic h th e A p p e lla te T rib u n a l o r

th e H ig h C o u rt h a s g iv e n its d e c isio n in so m e o th e r p ro c e e d in g s a n d an a p p eal to th e H ig h
C o u rt o r th e S u p re m e C o u rt ag a in st su c h d e c isio n o f th e A p p e lla te T rib u n al o r th e H ig h
C o u rt is p e n d in g , th e p e rio d sp e n t b e tw e e n th e d a te o f th e d e c isio n o f th e A p p e lla te T rib u n al
a n d th e d a te o f th e d e c isio n o f th e H ig h C o u rt o r th e d a te o f th e d e c isio n o f th e H ig h C o u rt
a n d th e d a te o f th e d e c isio n o f th e S u p re m e C o u rt shall b e e x c lu d e d in c o m p u tin g th e p e rio d
o f lim ita tio n re fe rre d to in c la u se (b) o f su b -se c tio n (2) w h e re p ro c e e d in g s fo r re v isio n h a v e
b e e n in itia te d b y w a y o f issu e o f a n o tic e u n d e r th is section.
(5) W h e re th e issu a n c e o f an o rd e r u n d e r su b -se c tio n (1) is sta y e d b y th e o rd e r o f a

c o u rt o r A p p e lla te T rib u n al, th e p e rio d o f su c h stay sh all b e e x c lu d e d in c o m p u tin g th e
p e rio d o f lim ita tio n re fe rre d to in c la u se (b) o f su b -se c tio n (2).
(6 ) F o r th e p u rp o se s o f this sectio n , th e te rm ,—
(i) “re c o rd ” shall in c lu d e all re c o rd s re la tin g to an y p ro c e e d in g s u n d e r this A c t

av a ila b le at th e tim e o f e x a m in a tio n b y th e R e v isio n a l A u th o rity ;
(ii) “ d e c isio n ” sh all in c lu d e in tim a tio n g iv e n b y an y o ffic e r lo w e r in ra n k th a n

th e R e v isio n a l A uth o rity .
Constitution 109. (1) T h e G o v e rn m e n t shall, o n th e re c o m m en d atio n s o f th e C oun cil, b y no tificatio n ,

of Appellate co n stitu te w ith e ffe c t fro m su c h d a te as m a y b e sp e c ifie d th erein , an A p p e lla te T rib u n al
Tribunal and
k n o w n as th e G o o d s a n d S erv ices Tax A p p e lla te T rib u n a l fo r h e a rin g ap p eals a g a in st th e
Benches
thereof. o rd ers p a ss e d b y th e A p p e lla te A u th o rity o r th e R e v isio n a l A u th o rity .
( 2 ) T h e p o w e rs o f th e A p p e lla te T rib u n a l shall b e e x e rc isa b le b y th e N a tio n a l B e n c h

a n d B e n c h e s th e re o f (h e re in a fte r in this C h a p te r re fe rre d to as “R e g io n a l B e n c h e s” ), S tate
B e n c h a n d B e n c h e s th e re o f (h e re a fte r in this C h a p te r re fe rre d to as “A re a B e n c h e s” ).
(5) T h e N a tio n a l B e n c h o f th e A p p e lla te T rib u n a l sh all b e situ a te d at N e w D e lh i w h ic h

shall b e p re s id e d o v e r b y th e P re s id e n t a n d shall c o n sist o f o n e T ech n ical M e m b e r (C en tre)
a n d o n e T ech n ical M e m b e r (State).
(4 ) T h e G o v e rn m e n t shall, o n th e re c o m m e n d a tio n s o f th e C o u n c il, b y n o tific a tio n ,

co n stitu te su c h n u m b e r o f R e g io n a l B e n c h e s as m a y b e re q u ire d a n d su c h R e g io n a l B en ch es
shall co n sist o f a Ju d icial M em ber, o n e T echnical M e m b e r (C entre) an d o n e T echnical M em b er
(State).
( 5 ) T h e N atio n a l B e n c h o r R e g io n a l B e n c h e s o f th e A p p e lla te T rib u n a l sh all h a v e

ju risd ic tio n to h e a r ap p e a ls a g a in st th e o rd e rs p a ss e d b y th e A p p e lla te A u th o rity o r th e
R e v isio n a l A u th o rity in th e cases w h e re o n e o f th e issu e s in v o lv e d re la te s to th e p la c e o f
supply.
(6) T h e G o v e rn m e n t shall, b y n o tific a tio n , sp e c ify fo r e a c h S tate o r U n io n territo ry , a

B e n c h o f th e A p p e lla te T rib u n al (h e re a fte r in this C h ap ter, re fe rre d to as “ S tate B e n c h ”) fo r
ex ercisin g th e p o w e rs o f th e A p p e lla te T rib u n al w ith in th e c o n c e rn e d S tate o r U n io n territory:
P ro v id e d th a t th e G o v e rn m e n t shall, o n re c e ip t o f a re q u e st fro m any S tate G o v ern m en t,

c o n stitu te su c h n u m b e r o f A re a B e n c h e s in th a t S tate, as m a y b e re c o m m e n d e d b y th e
C ouncil:
P ro v id e d fu rth e r th a t th e G o v e rn m e n t m ay, o n re c e ip t o f a re q u e st fro m any S tate, o r o n

its o w n m o tio n fo r a U n io n territo ry , n o tify th e A p p e lla te T rib u n a l in a S tate to act as th e
A p p e lla te T rib u n al fo r an y o th e r S ta te o r U n io n territory, as m a y b e re c o m m e n d e d b y th e
C o u n c il, su b je c t to su c h term s a n d c o n d itio n s as m a y b e p rescrib ed .
(7) T h e S tate B e n c h o r A re a B en c h e s sh all h a v e ju risd ic tio n to h e a r ap p eals ag ain st

th e o rd e rs p a s s e d b y th e A p p e lla te A u th o rity o r th e R e v isio n a l A u th o rity in th e cases
in v o lv in g m atters o th e r th a n th o se re fe rre d to in su b -se c tio n (5).
(8) T h e P re s id e n t a n d th e S tate P re sid e n t shall, b y g e n e ra l o r sp ecial o rder, d istrib u te
th e b u sin e ss o r tra n sfe r cases a m o n g R e g io n a l B e n c h e s or, as th e ca se m a y b e, A re a B en ch es
in a State.
(9) E a c h S tate B e n c h a n d A re a B en c h e s o f th e A p p e lla te T rib u n a l shall c o n sist o f a
Ju d ic ia l M em b er, o n e T ech n ical M e m b e r (C en tre) a n d o n e T ech n ical M e m b e r (S tate) a n d th e
S tate G o v e rn m e n t m a y d e sig n a te th e se n io r m o st Ju d ic ia l M e m b e r in a S ta te as th e S tate
P re sid e n t.
(10) In th e a b se n c e o f a M e m b e r in an y B e n c h d u e to v a c a n c y o r o th e rw ise , an y ap p eal
m ay, w ith th e a p p ro v a l o f th e P re s id e n t or, as th e c a se m a y b e, th e S tate P re sid e n t, b e h e a rd
b y a B e n c h o f tw o M e m b e rs:
P ro v id e d th a t an y ap p eal w h e re th e ta x o r in p u t ta x cre d it in v o lv e d o r th e d iffe re n c e in
tax o r in p u t ta x cre d it in v o lv e d o r th e a m o u n t o f fin e, fe e o r p e n a lty d e te rm in e d in an y o rd e r
a p p e a le d ag ain st, d o es n o t e x c e e d fiv e la k h ru p ees a n d w h ic h d o es n o t in v o lv e an y q u e stio n
o f la w m ay, w ith th e ap p ro v a l o f th e P re sid e n t a n d su b je c t to su c h c o n d itio n s as m a y b e
p re s c rib e d o n th e re c o m m e n d a tio n s o f th e C o u n c il, b e h e a rd b y a b e n c h c o n sistin g o f a
single m em ber.
(11) If th e M e m b e rs o f th e N a tio n a l B en c h , R e g io n a l B en c h e s, S tate B e n c h o r A re a
B en c h e s d iffe r in o p in io n o n an y p o in t o r p o in ts, it sh all b e d e c id e d a c c o rd in g to th e o p in io n
o f th e m ajo rity , if th e re is a m ajo rity , b u t if th e M e m b e rs a re e q u a lly d iv id e d , th e y sh all state
th e p o in t o r p o in ts o n w h ic h th e y differ, a n d th e c a se shall b e re fe rre d b y th e P re sid e n t o r as
th e c a se m a y b e, S tate P re s id e n t fo r h e a rin g o n su c h p o in t o r p o in ts to o n e o r m o re o f th e
o th e r M e m b e rs o f th e N atio n a l B e n ch , R e g io n a l B en c h e s, S tate B e n c h o r A re a B e n c h e s an d
su c h p o in t o r p o in ts sh all b e d e c id e d a c c o rd in g to th e o p in io n o f th e m a jo rity o f M e m b e rs
w h o h a v e h e a rd th e case, in c lu d in g th o se w h o first h e a rd it.
(1 2 ) T h e G o v e rn m e n t, in c o n su lta tio n w ith th e P re sid e n t m ay, fo r th e a d m in istra tiv e
co n v e n ie n c e , tra n sfe r—
(a) any Ju d icial M e m b e r o r a M e m b e r T echnical (State) fro m o n e B en c h to another
B en ch , w h e th e r N a tio n a l o r R e g io n a l; o r
(b ) an y M e m b e r T ech n ical (C en tre) fro m o n e B e n c h to a n o th e r B en c h , w h e th e r
N atio n al, R e g io n a l, S tate o r A rea.
(1 3 ) T h e S ta te G o v e rn m e n t, in c o n su lta tio n w ith th e S ta te P re s id e n t m ay, fo r th e
ad m in istra tiv e c o n v e n ie n c e , tra n sfe r a Ju d ic ia l M e m b e r o r a M e m b e r T ech n ical (S tate) fro m
o n e B e n c h to a n o th e r B e n c h w ith in th e State.
(1 4 ) N o act o r p ro c e e d in g s o f th e A p p e lla te T rib u n al sh all b e q u e stio n e d o r shall b e
in v a lid m e re ly o n th e g ro u n d o f th e e x iste n c e o f an y v a c a n c y o r d e fe c t in th e c o n stitu tio n o f
th e A p p e lla te T ribunal.
110. (1) A p e rs o n shall n o t b e q u a lifie d fo r a p p o in tm e n t as— President and

Members of
(a ) th e P re sid e n t, u n le ss h e h a s b e e n a Ju d g e o f th e S u p re m e C o u rt o r is o r has Appellate
b e e n th e C h ie f Ju s tic e o f a H ig h C o u rt, o r is o r h as b e e n a Ju d g e o f a H ig h C o u rt fo r a Tribunal,
p e rio d n o t less th a n fiv e y ea rs; their
qualification,
( b ) a Ju d ic ia l M em b er, u n le ss h e — appointment,
conditions of
(i) h as b e e n a Ju d g e o f th e H ig h C o u rt; o r
service, etc.
(ii) is o r h as b e e n a D istric t Ju d g e q u a lifie d to b e a p p o in te d as a Ju d g e o f
a H ig h C o u rt; o r
(iii) is o r h as b e e n a M e m b e r o f In d ia n L e g a l S e rv ic e a n d h a s h e ld a p o st
n o t less th a n A d d itio n a l S e c re ta ry fo r th re e y ears;
(c) a T ech n ical M e m b e r (C en tre) u n le ss h e is o r h as b e e n a m e m b e r o f In d ia n

R e v e n u e (C u sto m s a n d C e n tra l E x c ise ) S erv ice, G ro u p A , a n d h a s c o m p le te d at least
fifte e n y e a rs o f se rv ic e in G ro u p A;
(d) a T ech n ical M e m b e r (S tate) u n le ss h e is o r h a s b e e n an o ffic e r o f th e S tate

G o v e rn m e n t n o t b e lo w th e ra n k o f A d d itio n a l C o m m issio n e r o f V alue A d d e d Tax o r the
S tate g o o d s a n d serv ices ta x o r su c h ra n k as m a y b e n o tifie d b y th e c o n c e rn e d S tate
G o v e rn m e n t o n th e re c o m m e n d a tio n s o f th e C o u n c il w ith at le a st th re e y e a rs o f
e x p e rie n c e in th e a d m in istra tio n o f an e x istin g la w o r th e S tate G o o d s a n d S erv ices Tax
A c t o r in th e fie ld o f fin a n c e a n d ta x a tio n .
(2) T h e P re s id e n t a n d th e Ju d ic ia l M e m b e rs o f th e N a tio n a l B e n c h a n d th e R e g io n a l
B en c h e s shall b e a p p o in te d b y th e G o v e rn m e n t a fte r c o n su lta tio n w ith th e C h ie f Ju s tic e o f
In d ia o r h is n o m in e e :
P ro v id e d th a t in th e e v e n t o f th e o c c u rre n c e o f a n y v a c a n c y in th e o ffic e o f th e
P re sid e n t b y re a so n o f h is d eath , re sig n a tio n o r o th e rw ise , th e se n io r m o st M e m b e r o f th e
N atio n a l B e n c h shall act as th e P re sid e n t u n til th e d a te o n w h ic h a n e w P re sid e n t, a p p o in te d
in a c c o rd a n c e w ith th e p ro v isio n s o f this A c t to fill su c h v acan cy , en ters u p o n h is o ffic e :
P ro v id e d fu rth e r th a t w h e re th e P re sid e n t is u n a b le to d isc h a rg e h is fu n c tio n s o w in g

to a b sen ce, illn ess o r an y o th e r c au se, th e se n io r m o st M e m b e r o f th e N a tio n a l B e n c h shall
d isc h a rg e th e fu n c tio n s o f th e P re sid e n t u n til th e d a te o n w h ic h th e P re s id e n t re su m e s h is
d u tie s.
(5) T h e T ech n ical M e m b e r (C en tre) a n d T ech n ic a l M e m b e r (S tate) o f th e N atio n a l

B en c h a n d R e g io n a l B en ch es shall b e a p p o in te d b y th e G o v e rn m e n t o n th e re c o m m e n d a tio n s
o f a S electio n C o m m itte e co n sistin g o f su ch p erso n s a n d in su ch m a n n e r as m a y b e p rescrib ed .
(4) T h e Ju d ic ia l M e m b e r o f th e S tate B e n c h o r A re a B e n c h e s sh all b e ap p o in te d b y th e

S tate G o v e rn m e n t a fte r c o n su lta tio n w ith th e C h ie f Ju s tic e o f th e H ig h C o u rt o f th e S ta te o r
h is n o m in ee.
(5) T h e T ech n ical M e m b e r (C en tre) o f th e S tate B e n c h o r A re a B e n c h e s sh all b e

ap p o in te d b y th e C e n tra l G o v e rn m e n t a n d T ech n ical M e m b e r (S tate) o f th e S tate B e n c h o r
A re a B e n c h e s sh a ll b e a p p o in te d b y th e S ta te G o v e rn m e n t in su c h m a n n e r as m a y b e
p re sc rib e d .
(6 ) N o ap p o in tm e n t o f th e M e m b e rs o f th e A p p e lla te T rib u n a l shall b e in v a lid m e re ly

b y th e re a so n o f an y v a c a n c y o r d e fe c t in th e c o n stitu tio n o f th e S e le c tio n C o m m ittee.
(7 ) B e fo re ap p o in tin g any p erso n as th e P re sid e n t o r M em b ers o f th e A p p e lla te T ribunal,

th e C e n tra l G o v e rn m e n t or, as th e ca se m a y b e, th e S tate G o v e rn m e n t, sh all satisfy itse lf th at
su c h p e rso n d o es n o t h a v e an y fin a n c ia l o r o th e r in te re sts w h ic h are lik e ly to p re ju d ic ia lly
affect h is fu n c tio n s as su c h P re s id e n t o r M em b er.
(8) T h e salary, allo w a n c e s a n d o th e r term s a n d c o n d itio n s o f serv ic e o f th e P re sid e n t,

S tate P re sid e n t an d th e M em b ers o f th e A p p e lla te T rib u n al shall b e su ch as m a y b e p rescrib ed :
P ro v id e d th a t n e ith e r sala ry a n d a llo w an c es n o r o th e r term s a n d c o n d itio n s o f serv ice

o f th e P re sid e n t, S tate P re s id e n t o r M e m b e rs o f th e A p p e lla te T rib u n al shall b e v a rie d to th e ir
d isa d v a n ta g e a fte r th e ir a p p o in tm en t.
(9) T h e P re s id e n t o f th e A p p e lla te T rib u n al sh all h o ld o ffic e fo r a te rm o f th re e y ears

fro m th e d a te o n w h ic h h e e n ters u p o n h is o ffice, o r u n til h e attain s th e ag e o f se v en ty y ears,
w h ic h e v e r is e a rlie r a n d sh all b e e lig ib le fo r re a p p o in tm e n t.
(10) T h e Ju d ic ia l M e m b e r o f th e A p p e lla te T rib u n al a n d th e S tate P re s id e n t sh all h o ld

o ffic e fo r a te rm o f th re e y e a rs fro m th e d a te o n w h ic h h e e n ters u p o n h is o ffice, o r u n til h e
a tta in s th e a g e o f s i x ty - f iv e y e a r s , w h ic h e v e r is e a r l ie r a n d s h a ll b e e li g ib l e f o r
reap p o in tm e n t.
(11) T h e T ech n ic a l M e m b e r (C en tre) o r T ech n ical M e m b e r (S tate) o f th e A p p e lla te

T rib u n a l sh all h o ld o ffic e fo r a te rm o f fiv e y e a rs fro m th e d a te o n w h ic h h e en te rs u p o n h is
o ffice, o r u n til h e attain s th e ag e o f six ty -fiv e y e a rs, w h ic h e v e r is e a rlie r a n d sh all b e elig ib le
fo r reap p o in tm e n t.
(1 2 ) T h e P re sid e n t, S tate P re s id e n t o r an y M e m b e r m ay, b y n o tic e in w ritin g u n d e r h is

h a n d a d d re sse d to th e C e n tra l G o v e rn m e n t or, as th e c a se m a y b e, th e S tate G o v e rn m e n t
re sig n fro m h is office:
P ro v id e d th a t th e P re sid e n t, S tate P re sid e n t o r M e m b e r sh all c o n tin u e to h o ld o ffic e
u n til th e ex p iry o f th re e m o n th s fro m th e d a te o f re c e ip t o f su c h n o tic e b y th e C e n tra l
G o v e rn m e n t, or, as th e c a se m a y b e, th e S tate G o v e rn m e n t o r u n til a p e rs o n d u ly a p p o in te d
as h is su c c e sso r e n ters u p o n h is o ffic e o r u n til th e ex p iry o f h is te rm o f o ffice, w h ic h e v e r is
th e earliest.
(1 3 ) T h e C e n tra l G o v e rn m e n t m ay, a fter c o n su lta tio n w ith th e C h ie f Ju stic e o f In d ia, in

case o f th e P re sid e n t, Ju d ic ia l M e m b e rs a n d T ech n ical M e m b e rs o f th e N a tio n a l B en ch ,
R e g io n a l B en c h e s o r T ech n ical M e m b e rs (C en tre) o f th e S tate B e n c h o r A re a B en c h e s, an d
th e S tate G o v e rn m e n t m ay, a fte r c o n su lta tio n w ith th e C h ie f Ju s tic e o f H ig h C o u rt, in ca se o f
th e S tate P re sid e n t, Ju d ic ia l M e m b e rs, T ech n ical M e m b e rs (S tate) o f th e S tate B e n c h o r A re a
B en c h e s, m a y re m o v e fro m th e o ffic e su c h P re sid e n t o r M em b er, w h o —
(a ) h as b e e n a d ju d g e d an in so lv en t; o r
(b) h a s b e e n c o n v ic te d o f an o ffe n c e w h ich , in th e o p in io n o f su c h G o v e rn m e n t
in v o lv es m o ra l tu rp itu d e ; o r
(c) h as b e c o m e p h y sic a lly o r m e n ta lly in c a p a b le o f a c tin g as su c h P re sid e n t,

S tate P re sid e n t o r M e m b e r; o r
(d) h as a c q u ire d su c h fin a n c ia l o r o th e r in te re st as is lik e ly to a ffect p re ju d ic ia lly

h is fu n c tio n s as su c h P re sid e n t, S ta te P re sid e n t o r M em b e r; o r
(e) h as so a b u se d h is p o sitio n as to re n d e r h is c o n tin u a n c e in o ffic e p re ju d ic ia l
to th e p u b lic interest:
P ro v id e d th a t th e P re sid e n t, S tate P re sid e n t o r th e M e m b e r sh all n o t b e re m o v e d

o n an y o f th e g ro u n d s sp e c ifie d in c lau ses ( d ) a n d ( e ), u n le ss h e h a s b e e n in fo rm e d o f
th e ch arg e s a g a in st h im a n d h a s b e e n g iv e n an o p p o rtu n ity o f b e in g h eard .
(1 4 ) W ith o u t p re ju d ic e to th e p ro v isio n s o f su b -se c tio n (1 3 ),—
( a ) th e P re s id e n t o r a Ju d ic ia l a n d T ech n ical M e m b e r o f th e N a tio n a l B e n c h o r

R e g io n a l B e n c h e s, T ech n ical M e m b e r (C en tre) o f th e S tate B e n c h o r A re a B en ch es
shall no t b e re m o v ed fro m th eir office ex cep t b y an o rd er m ad e b y the C entral G o vernm ent
o n th e g ro u n d o f p ro v e d m isb e h a v io u r o r in c a p a c ity a fte r an in q u iry m a d e b y a Ju d g e
o f th e S u p re m e C o u rt n o m in a te d b y th e C h ie f Ju s tic e o f In d ia o n a re fe re n c e m a d e to
h im b y th e C e n tra l G o v e rn m e n t a n d o f w h ic h th e P re sid e n t o r th e said M e m b e r h a d
b e e n g iv e n an o p p o rtu n ity o f b e in g h e ard ;
(b) th e Ju d ic ia l M e m b e r o r T ech n ical M e m b e r (S tate) o f th e S tate B e n c h o r A re a

B en c h e s sh all n o t b e re m o v e d fro m th e ir o ffic e e x c e p t b y an o rd e r m a d e b y th e S tate
G o v e rn m e n t o n th e g ro u n d o f p ro v e d m isb e h a v io u r o r in c a p a c ity a fte r an in q u iry
m a d e b y a Ju d g e o f th e c o n c e rn e d H ig h C o u rt n o m in a te d b y th e C h ie f Ju stic e o f th e
c o n c e rn e d H ig h C o u rt o n a re fe re n c e m a d e to h im b y th e S tate G o v e rn m e n t a n d o f
w h ic h th e sa id M e m b e r h a d b e e n g iv e n an o p p o rtu n ity o f b e in g h eard .
(1 5 ) T h e C e n tra l G o v e rn m e n t, w ith th e c o n c u rre n c e o f th e C h ie f J u s tic e o f In d ia, m a y

su sp e n d fro m o ffice, th e P re s id e n t o r a Ju d ic ia l o r T ech n ical M e m b e rs o f th e N atio n a l B e n c h
o r th e R e g io n a l B e n c h e s o r th e T ech n ical M e m b e r (C en tre) o f th e S tate B e n c h o r A re a

B en c h e s in re s p e c t o f w h o m a re fe re n c e h as b e e n m a d e to th e Ju d g e o f th e S u p re m e C o u rt
u n d e r su b -se c tio n (1 4 ).
(1 6 ) T h e S tate G o v e rn m e n t, w ith th e c o n c u rre n c e o f th e C h ie f Ju s tic e o f th e H ig h

C o u rt, m a y su sp e n d fro m office, a Ju d ic ia l M e m b e r o r T ech n ical M e m b e r (S tate) o f th e State
B e n c h o r A re a B en c h e s in re sp e c t o f w h o m a re fe re n c e h a s b e e n m a d e to th e Ju d g e o f th e
H ig h C o u rt u n d e r su b -se c tio n ( 1 4 ).
(1 7 ) S u b je c t to th e p ro v isio n s o f a rticle 2 2 0 o f th e C o n stitu tio n , th e P re sid e n t, S tate

P re sid e n t o r o th e r M em b e rs, o n c e a sin g to h o ld th e ir office, shall n o t b e e lig ib le to ap p ear, act
o r p le a d b e fo re th e N a tio n a l B e n c h a n d th e R eg io n a l B en c h e s o r th e S tate B e n c h a n d th e
A re a B en c h e s th e re o f w h e re h e w as th e P re s id e n t or, as th e c a se m a y b e, a M em b er.
Procedure 111. (1) T h e A p p e lla te T rib u n al sh all n o t, w h ile d isp o sin g o f an y p ro c e e d in g s b e fo re it

before
o r an ap p eal b e fo re it, b e b o u n d b y th e p ro c e d u re la id d o w n in th e C o d e o f C iv il P ro c e d u re ,
Appellate
Tribunal. 1908, b u t shall b e g u id e d b y th e p rin cip les o f n atu ral ju s tic e an d su b ject to th e o th e r p ro v isio n s 5 of 1908.
o f th is A c t a n d th e ru le s m a d e th ereu n d er, th e A p p e lla te T rib u n al sh all h a v e p o w e r to re g u la te
its o w n p ro ced u re.
(2 ) T h e A p p e lla te T rib u n al shall, fo r th e p u rp o se s o f d isc h a rg in g its fu n ctio n s u n d e r

this A ct, h a v e th e sam e p o w ers as are v e ste d in a civil c o u rt u n d e r th e C o d e o f C iv il P ro ced u re,
1908 w h ile try in g a su it in re sp e c t o f th e fo llo w in g m atters, n a m e ly :— 5 of 1908.
(a ) su m m o n in g a n d e n fo rc in g th e a tte n d a n c e o f an y p e rso n a n d e x a m in in g h im
o n o a th ;
(b) re q u irin g th e d isc o v e ry a n d p ro d u c tio n o f d o c u m e n ts;
(c) re c e iv in g e v id e n c e o n affid av its;
(d) su b je c t to th e p ro v isio n s o f sectio n s 123 a n d 124 o f th e In d ia n E v id e n c e

A ct, 1872, re q u isitio n in g an y p u b lic re c o rd o r d o c u m e n t o r a c o p y o f su c h re c o rd o r 1 of 1872.
d o c u m e n t fro m an y office;
(e) issu in g c o m m issio n s fo r th e e x a m in a tio n o f w itn e sse s o r d o c u m e n ts;
( f d ism issin g a re p re se n ta tio n fo r d e fa u lt o r d e c id in g it e x p a r t e ;
(g) settin g a sid e an y o rd e r o f d ism issa l o f an y re p re se n ta tio n fo r d e fa u lt o r any

o rd e r p a ss e d b y it e x p a r t e ; an d
(h ) an y o th e r m a tte r w h ic h m a y b e p rescrib ed .
(5) A n y o rd e r m a d e b y th e A p p e lla te T rib u n a l m a y b e e n fo rc e d b y it in th e sam e

m a n n e r as if it w e re a d e c re e m a d e b y a c o u rt in a su it p e n d in g th erein , a n d it sh all b e law fu l
fo r th e A p p e lla te T rib u n al to se n d fo r e x e c u tio n o f its o rd ers to th e c o u rt w ith in th e lo cal
lim its o f w h o se ju risd ic tio n ,—
(a ) in th e ca se o f an o rd e r ag ain st a co m p an y , th e re g iste re d o ffice o f th e co m p a n y

is situ ated ; o r
( b ) in th e c a se o f an o rd e r a g a in s t an y o th e r p e rs o n , th e p e rs o n c o n c e rn e d
v o lu n ta rily re sid e s o r c arries o n b u sin e ss o r p e rso n a lly w o rk s fo r gain.
(4) A ll p ro c e e d in g s b e fo re th e A p p e lla te T rib u n a l sh a ll b e d e e m e d to b e ju d ic ia l

p ro c e e d in g s w ith in th e m e a n in g o f sectio n s 193 a n d 2 2 8 , a n d fo r th e p u rp o se s o f se c tio n 196
o f th e In d ia n P e n a l C o d e , a n d th e A p p e lla te T rib u n al shall b e d e e m e d to b e civ il c o u rt fo r th e 45 of 1860.
p u rp o se s o f se c tio n 195 a n d C h a p te r X X V I o f th e C o d e o f C rim in a l P ro c e d u re , 1973. 2 of 1974.
Appeals to 112. (1) A n y p e rs o n a g g rie v e d b y an o rd e r p a sse d a g a in st h im u n d e r se c tio n 107 o r

Appellate sec tio n 108 o f th is A c t o r th e S tate G o o d s a n d S erv ices Tax A c t o r th e U n io n T errito ry
Tribunal.
G o o d s a n d S erv ices Tax A c t m a y ap p eal to th e A p p e lla te T rib u n al ag a in st su c h o rd e r w ith in

th ree m o n th s fro m th e d a te o n w h ic h th e o rd e r so u g h t to b e ap p e a le d ag a in st is c o m m u n ic a te d
to th e p e rs o n p re fe rrin g th e appeal.
(2) T h e A p p e lla te T rib u n a l m ay, in its d isc re tio n , re fu se to a d m it an y su c h ap p eal

w h e re th e ta x o r in p u t ta x c re d it in v o lv e d o r th e d iffe re n c e in ta x o r in p u t ta x c re d it
in v o lv e d o r th e a m o u n t o f fin e, fe e o r p e n a lty d e te rm in e d b y su c h order, d o es n o t e x c e e d fifty
th o u s a n d ru p e e s.
(5) T h e C o m m issio n e r m ay, o n h is o w n m o tio n , o r u p o n re q u e st fro m th e C o m m issio n e r

o f S ta te ta x o r C o m m issio n e r o f U n io n te rrito ry tax, call fo r a n d e x a m in e th e re c o rd o f any
o rd e r p a ss e d b y th e A p p e lla te A u th o rity o r th e R ev isio n a l A u th o rity u n d e r this A c t o r th e
S tate G o o d s a n d S erv ices Tax A c t o r th e U n io n T errito ry G o o d s a n d S erv ices Tax A c t fo r th e
p u rp o se o f sa tisfy in g h im s e lf as to th e le g a lity o r p ro p rie ty o f th e sa id o rd e r a n d m ay, b y
order, d ire c t an y o ffic e r su b o rd in a te to h im to a p p ly to th e A p p e lla te T rib u n a l w ith in six
m o n th s fro m th e d a te o n w h ic h th e sa id o rd e r h as b e e n p a ss e d fo r d e te rm in a tio n o f su ch
p o in ts a risin g o u t o f th e sa id o rd e r as m a y b e sp e c ifie d b y th e C o m m issio n e r in h is order.
(4) W h e re in p u rsu a n c e o f an o rd e r u n d e r su b -se c tio n (5) th e a u th o rise d o ffic e r m ak es

an a p p lic a tio n to th e A p p e lla te T rib u n al, su c h a p p lic a tio n sh all b e d e a lt w ith b y th e A p p e lla te
T rib u n al as if it w e re an ap p e a l m a d e ag a in st th e o rd e r u n d e r su b -se c tio n (11) o f se c tio n 107
o r u n d e r su b -se c tio n (1) o f se c tio n 108 a n d th e p ro v isio n s o f this A c t sh all a p p ly to su ch
ap p licatio n , as th e y a p p ly in re la tio n to ap p eals file d u n d e r su b -se c tio n (1).
(5) O n re c e ip t o f n o tic e th a t an ap p eal h as b e e n p re fe rre d u n d e r th is sectio n , th e p a rty

ag a in st w h o m th e a p p eal h as b e e n p re fe rre d m ay, n o tw ith sta n d in g th a t h e m a y n o t h a v e
a p p e a le d ag a in st su c h o rd e r o r an y p a rt th ereo f, file, w ith in fo rty -fiv e d ay s o f th e re c e ip t o f
n o tic e , a m e m o ra n d u m o f c ro ss-o b je c tio n s, v e rifie d in th e p re s c rib e d m an n er, ag a in st any
p a rt o f th e o rd e r a p p e a le d a g a in s t a n d su c h m e m o ra n d u m sh a ll b e d is p o s e d o f b y th e
A p p e lla te T rib u n a l, as i f it w e re a n a p p e a l p r e s e n te d w ith in th e tim e s p e c if ie d in
su b -se c tio n (1).
(6) T h e A p p e lla te T rib u n al m a y ad m it an ap p eal w ith in th re e m o n th s after th e ex p iry o f

th e p e r io d r e f e r r e d to in s u b - s e c tio n (1 ), o r p e r m it th e f ilin g o f a m e m o ra n d u m o f
c ro s s -o b je c tio n s w ith in f o r ty - f iv e d a y s a fte r th e e x p ir y o f th e p e r io d r e f e r r e d to in
su b -se c tio n (5) if it is sa tisfie d th a t th e re w as su ffic ie n t c a u se fo r n o t p re se n tin g it w ith in th at
perio d .
(7) A n ap p eal to th e A p p e lla te T rib u n al shall b e in su c h fo rm , v e rifie d in su c h m a n n e r

a n d sh all b e a c c o m p a n ie d b y su c h fee, as m a y b e p rescrib ed .
(8) N o ap p e a l shall b e file d u n d e r su b -se c tio n (1), u n le ss th e a p p e lla n t h as p a id —
(a ) in fu ll, su c h p a rt o f th e a m o u n t o f tax, in te re st, fin e, fe e a n d p e n a lty a risin g

fro m th e im p u g n e d o rder, as is a d m itte d b y h im , an d
(b) a su m e q u a l to tw e n ty p e r cent. o f th e re m a in in g am o u n t o f ta x in d isp u te, in

ad d itio n to th e am o u n t p a id u n d e r su b -se c tio n (6) o f se c tio n 107, a risin g fro m th e said
order, in re la tio n to w h ic h th e ap p e a l h as b e e n filed.
(9) W h e re th e a p p e lla n t h as p a id th e am o u n t as p e r su b -se c tio n (8), th e re c o v e ry

p ro c e e d in g s fo r th e b a la n c e a m o u n t sh all b e d e e m e d to b e sta y e d till th e d isp o sa l o f th e
appeal.
(1 0 ) E v e ry a p p lic a tio n m a d e b e fo re th e A p p e lla te T rib u n al,—
(a ) in an ap p eal fo r re c tific a tio n o f e rro r o r fo r an y o th e r p u rp o se ; o r
( b ) fo r re s to ra tio n o f an ap p e a l o r an ap p licatio n ,
shall b e a c c o m p a n ie d b y su c h fees as m a y b e p rescrib ed .

Orders of 113. ( ! ) T h e A p p e lla te T r ib u n a l m a y , a f te r g iv in g th e p a r tie s to th e a p p e a l

Appellate an o p p o rtu n ity o f b e in g h eard , p ass su c h o rd ers th ere o n as it th in k s fit, co n firm in g , m o d ify in g
Tribunal.
o r an n u llin g th e d e c isio n o r o rd e r ap p e a le d ag a in st o r m a y re fe r th e ca se b a c k to th e A p p e lla te
A u th o rity , o r th e R e v isio n a l A u th o rity o r to th e o rig in a l a d ju d ic a tin g authority, w ith su ch
d ire c tio n s as it m a y th in k fit, fo r a fre sh a d ju d ic a tio n o r d e c isio n a fte r ta k in g ad d itio n al
ev id e n c e , if n ecessary .
(2) T h e A p p e lla te T rib u n a l m ay, if su ffic ie n t c a u se is sh o w n , at an y stag e o f h e a rin g o f

an ap p eal, g ra n t tim e to th e p a rtie s o r an y o f th e m a n d a d jo u rn th e h e a rin g o f th e ap p eal fo r
reaso n s to b e re c o rd e d in w ritin g :
P ro v id e d th a t n o su c h a d jo u rn m e n t sh all b e g ra n te d m o re th a n th re e tim es to a p a rty

d u rin g h e a rin g o f th e appeal.
(5) T h e A p p e lla te T rib u n a l m a y a m e n d an y o rd e r p a ss e d b y it u n d e r su b -se c tio n (1) so

as to re c tify an y e rro r a p p a re n t o n th e fa c e o f th e reco rd , if su c h e rro r is n o tic e d b y it o n its
o w n acco rd , o r is b ro u g h t to its n o tic e b y th e C o m m issio n e r o r th e C o m m issio n e r o f S tate tax
o r th e C o m m issio n e r o f th e U n io n te rrito ry tax o r th e o th e r p a rty to th e ap p eal w ith in a p e rio d
o f th re e m o n th s fro m th e d a te o f th e o rd e r:
P ro v id e d th a t n o a m e n d m e n t w h ic h h a s th e e ffe c t o f e n h a n c in g an a sse ssm e n t o r

re d u c in g a re fu n d o r in p u t ta x c re d it o r o th e rw ise in c re a sin g th e lia b ility o f th e o th e r party,
shall b e m a d e u n d e r this su b -se c tio n , u n le ss th e p a rty h as b e e n g iv e n an o p p o rtu n ity o f
b e in g h eard.
(4) T h e A p p e lla te T rib u n al shall, as fa r as p o ssib le , h e a r a n d d e c id e e v e ry ap p eal

w ith in a p e rio d o f o n e y e a r fro m th e d a te o n w h ic h it is filed.
(5) T h e A p p e lla te T rib u n al sh all se n d a c o p y o f e v e ry o rd e r p a ss e d u n d e r this sectio n

to th e A p p e lla te A u th o rity o r th e R e v isio n a l A u th o rity , o r th e o rig in a l a d ju d ic a tin g authority,
as th e ca se m a y be, th e ap p ellan t a n d th e ju risd ic tio n a l C o m m issio n e r o r th e C o m m issio n e r o f
S tate ta x o r th e U n io n te rrito ry tax.
(6) S a v e as p ro v id e d in se c tio n 117 o r se c tio n 118, o rd ers p a ss e d b y th e A p p e lla te

T rib u n a l o n an ap p eal sh all b e fin al a n d b in d in g o n th e p arties.
Financial and 114. T h e P re sid e n t shall e x e rc ise su c h fin a n c ia l a n d a d m in istra tiv e p o w e rs o v e r th e

administrative N atio n a l B e n c h a n d R eg io n a l B e n ch e s o f th e A p p e lla te T rib u n al as m a y b e p re sc rib e d :
powers of
President. P ro v id e d th a t th e P re s id e n t sh all h a v e th e au th o rity to d e le g a te su c h o f h is fin an cial
a n d a d m in istra tiv e p o w e rs as h e m a y th in k fit to an y o th e r M e m b e r o r an y o ffic e r o f th e
N atio n a l B e n c h a n d R e g io n a l B en c h e s, su b je c t to th e co n d itio n th a t su c h M e m b e r o r o ffic e r
shall, w h ile e x e rc isin g su c h d e le g a te d p o w e rs, c o n tin u e to act u n d e r th e d irectio n , co n tro l
a n d su p e rv isio n o f th e P resid en t.
Interest on 115. W h e re an am o u n t p a id b y th e a p p e lla n t u n d e r su b -se c tio n (6) o f se c tio n 107 o r

refund of su b -se c tio n (8) o f se c tio n 112 is re q u ire d to b e re fu n d e d c o n se q u e n t to an y o rd e r o f th e
amount paid
A p p e lla te A u th o rity o r o f th e A p p e lla te T rib u n a l, in te re s t at th e ra te s p e c ifie d u n d e r
for admission
of appeal. sec tio n 56 shall b e p a y a b le in re s p e c t o f su c h re fu n d fro m th e d a te o f p a y m e n t o f th e a m o u n t
till th e d a te o f re fu n d o f su c h am ount.
Appearance 116. (1) A n y p e rso n w h o is e n title d o r re q u ire d to a p p e a r b e fo re an o ffic e r a p p o in te d

by authorised u n d e r th is A c t, o r th e A p p e lla te A u th o rity o r th e A p p e lla te T rib u n a l in c o n n e c tio n w ith any
representative.
p ro c e e d in g s u n d e r th is A c t, m ay, o th e rw ise th a n w h e n re q u ire d u n d e r this A c t to a p p e a r
p e rso n a lly fo r e x a m in a tio n o n o a th o r affirm a tio n , su b je c t to th e o th e r p ro v isio n s o f this
sectio n , a p p e a r b y an a u th o rise d re p re se n ta tiv e .
(2) F o r th e p u rp o s e s o f th is A c t, th e e x p re s sio n “a u th o rise d re p re se n ta tiv e ” shall

m e a n a p e rs o n a u th o rise d b y th e p e rs o n re fe rre d to in su b -se c tio n (1) to a p p e a r o n his
b eh a lf, b e in g —
(a ) h is re la tiv e o r re g u la r e m p lo y e e ; o r
(b) an a d v o c a te w h o is e n title d to p ra c tic e in a n y c o u rt in In d ia, a n d w h o h as n o t

b e e n d e b a rre d fro m p ra c tic in g b e fo re an y c o u rt in In d ia; o r
(c) an y c h a rte re d a c c o u n tan t, a c o st a c c o u n ta n t o r a c o m p a n y secretary, w h o

h o ld s a c e rtific a te o f p ra c tic e a n d w h o h as n o t b e e n d e b a rre d fro m pra c tic e ; o r
( d ) a re tire d o ffic e r o f th e C o m m e rc ia l Tax D e p a rtm e n t o f an y S tate G o v e rn m e n t

o r U n io n te rrito ry o r o f th e B o a rd w h o , d u rin g h is serv ic e u n d e r th e G o v e rn m e n t, h a d
w o rk e d in a p o st n o t b e lo w th e ra n k th a n th a t o f a G ro u p -B G a z e tte d o ffic e r fo r a p e rio d
o f n o t less th a n tw o y e a rs:
P ro v id e d th a t su c h o ffic e r shall n o t b e e n title d to a p p e a r b e fo re an y p ro c e e d in g s

u n d e r this A c t fo r a p e rio d o f o n e y e a r fro m th e d a te o f h is re tire m e n t o r re sig n a tio n ; o r
(e) a n y p e rs o n w h o h a s b e e n a u th o rise d to a ct as a g o o d s a n d se rv ic e s tax

p ra c titio n e r o n b e h a lf o f th e c o n c e rn e d re g iste re d p erso n .
(3) N o p e rso n ,—
(a ) w h o h as b e e n d ism isse d o r re m o v e d fro m G o v e rn m e n t serv ice; o r
(b) w h o is c o n v ic te d o f an o ffe n c e c o n n e c te d w ith an y p ro c e e d in g s u n d e r this

A ct, th e S tate G o o d s a n d S erv ices Tax A c t, th e In te g ra te d G o o d s a n d S erv ices Tax A c t
o r th e U n io n T errito ry G o o d s a n d S erv ices T ax A ct, o r u n d e r th e e x istin g la w o r u n d e r
an y o f th e A c ts p a ss e d b y a S tate L e g isla tu re d e a lin g w ith th e im p o sitio n o f tax es o n
sale o f g o o d s o r su p p ly o f g o o d s o r serv ices o r b o th ; o r
( c ) w h o is fo u n d g u ilty o f m isc o n d u c t b y th e p re s c rib e d au th o rity ;
(d ) w h o h as b e e n a d ju d g e d as an in so lv en t,
shall b e q u a lifie d to re p re se n t an y p e rs o n u n d e r su b -se c tio n (1)—
(i) fo r all tim e s in ca se o f p e rso n s re fe rre d to in c lau ses (a), (b) a n d (c); an d
(ii) fo r th e p e rio d d u rin g w h ic h th e in so lv e n c y c o n tin u e s in th e c a se o f a p e rso n

re fe rre d to in c la u se (d).
(4) A n y p e rso n w h o h as b e e n d is q u a lifie d u n d e r th e p ro v isio n s o f th e S tate G o o d s an d

S erv ices T ax A c t o r th e U n io n T errito ry G o o d s a n d S erv ices Tax A c t shall b e d e e m e d to b e
d isq u a lifie d u n d e r this A ct.
117. (1 ) A n y p e rs o n a g g rie v e d b y a n y o rd e r p a s s e d b y th e S ta te B e n c h o r AAppeal

re a to
B en c h e s o f th e A p p e lla te T rib u n al m a y file an ap p eal to th e H ig h C o u rt a n d th e H ig h C o u rt High Court.
m a y a d m it su c h ap p eal, if it is sa tisfie d th a t th e c a se in v o lv e s a su b sta n tia l q u e stio n o f law.
(2) A n ap p e a l u n d e r su b -se c tio n (1) shall b e file d w ith in a p e rio d o f o n e h u n d re d an d

eig h ty d ay s fro m th e d a te o n w h ic h th e o rd e r a p p e a le d ag a in st is re c e iv e d b y th e a g g rie v e d
p e rso n a n d it sh all b e in su c h fo rm , v e rifie d in su c h m a n n e r as m a y b e p re sc rib e d :
P ro v id e d th a t th e H ig h C o u rt m a y e n te rta in an ap p eal a fte r th e ex p iry o f th e sa id p e rio d

if it is sa tisfie d th a t th e re w as su ffic ie n t c a u se fo r n o t filin g it w ith in su c h perio d .
(3) W h e re th e H ig h C o u rt is sa tisfie d th a t a su b sta n tia l q u e stio n o f la w is in v o lv e d in

a n y case , it sh all fo rm u la te th a t q u e stio n a n d th e ap p eal sh all b e h e a rd o n ly o n th e q u e stio n
so fo rm u la te d , a n d th e re sp o n d e n ts shall, at th e h e a rin g o f th e ap p eal, b e a llo w e d to arg u e
th a t th e c a se d o es n o t in v o lv e su c h q u e stio n :
P ro v id e d th a t n o th in g in th is su b -se c tio n shall b e d e e m e d to ta k e a w a y o r a b rid g e th e

p o w e r o f th e c o u rt to h ear, fo r re a so n s to b e re c o rd e d , th e a p p eal o n a n y o th e r su b stan tial
q u e stio n o f la w n o t fo rm u la te d b y it, if it is sa tisfie d th a t th e c a se in v o lv e s su c h q u estio n .
(4 ) T h e H ig h C o u rt shall d e c id e th e q u e stio n o f la w so fo rm u la te d a n d d e liv e r su ch

ju d g m e n t th e re o n c o n ta in in g th e g ro u n d s o n w h ic h su c h d e c is io n is fo u n d e d a n d m a y
a w a rd su c h c o st as it d e e m s fit.
(5) T h e H ig h C o u rt m a y d e te rm in e an y issu e w h ic h —
( a ) h as n o t b e e n d e te rm in e d b y th e S tate B e n c h o r A re a B e n c h e s; o r
(b) h as b e e n w ro n g ly d e te rm in e d b y th e S ta te B e n c h o r A re a B en c h e s, b y re a so n
o f a d e c isio n o n su c h q u e stio n o f la w as h e re in re fe rre d to in su b -se c tio n (5).
(6 ) W h e re an ap p e a l h as b e e n file d b e fo re th e H ig h C o u rt, it sh all b e h e a rd b y a B e n c h

o f n o t less th a n tw o Ju d g e s o f th e H ig h C o u rt, a n d sh all b e d e c id e d in a c c o rd a n c e w ith th e
o p in io n o f su c h Ju d g e s o r o f th e m ajo rity , if any, o f su c h Ju d g es.
(7) W h e re th e re is n o su c h m ajo rity , th e Ju d g e s shall sta te th e p o in t o f la w u p o n w h ic h

th e y d iffe r a n d th e c a se shall, th e n , b e h e a rd u p o n th a t p o in t only, b y o n e o r m o re o f th e o th e r
Ju d g e s o f th e H ig h C o u rt a n d su c h p o in t shall b e d e c id e d a c c o rd in g to th e o p in io n o f th e
m a jo rity o f th e Ju d g e s w h o h a v e h e a rd th e c a se in c lu d in g th o se w h o first h e a rd it.
(8) W h e re th e H ig h C o u rt d eliv ers a ju d g m e n t in an ap p eal file d b e fo re it u n d e r this

sectio n , e ffe c t shall b e g iv e n to su c h ju d g m e n t b y e ith e r sid e o n th e b a sis o f a c e rtifie d c o p y
o f th e ju d g m e n t.
(9) S av e as o th erw ise p ro v id e d in this A ct, th e p ro v isio n s o f th e C o d e o f C iv il P ro ced u re,

1908, re la tin g to ap p eals to th e H ig h C o u rt shall, as fa r as m a y b e, a p p ly in th e ca se o f ap p eals 5 of 1908.
u n d e r this section.
Appeal to 118. (1) A n ap p eal shall lie to th e S u p re m e C o u rt—

Supreme
Court. ( a ) fro m an y o rd e r p a sse d b y th e N a tio n a l B e n c h o r R e g io n a l B en c h e s o f th e
A p p e lla te T rib u n a l; o r
( b ) fro m an y ju d g m e n t o r o rd e r p a ss e d b y th e H ig h C o u rt in an ap p eal m a d e
u n d e r se c tio n 117 in an y c a se w h ich , o n its o w n m o tio n o r o n an a p p lic a tio n m a d e b y
o r o n b e h a lf o f th e p a rty ag g riev ed , im m e d ia te ly a fte r p a ssin g o f th e ju d g m e n t o r order,
th e H ig h C o u rt certifie s to b e a fit o n e fo r ap p eal to th e S u p re m e C ourt.
(2) T h e p ro v isio n s o f th e C o d e o f C iv il P ro c e d u re , 1908, re la tin g to ap p eals to th e 5 of 1908.

S u p re m e C o u rt shall, so fa r as m a y be, a p p ly in th e c a se o f ap p eals u n d e r this se c tio n as th e y
ap p ly in th e c a se o f ap p eals fro m d ec re e s o f a H ig h C ourt.
(5) W h e re th e ju d g m e n t o f th e H ig h C o u rt is v a rie d o r re v e rse d in th e ap p eal, e ffect

shall b e g iv e n to th e o rd e r o f th e S u p re m e C o u rt in th e m a n n e r p ro v id e d in se c tio n 117 in th e
case o f a ju d g m e n t o f th e H ig h C ourt.
Sums due to 119. N o tw ith s ta n d in g th a t an a p p e a l h a s b e e n p re fe rre d to th e H ig h C o u rt o r th e

be paid S u p re m e C o u rt, su m s d u e to th e G o v e rn m e n t as a re su lt o f an o rd e r p a ss e d b y th e N atio n a l
notwithstanding
o r R e g io n a l B en c h e s o f th e A p p e lla te T rib u n al u n d e r su b -se c tio n (1) o f se c tio n 113 o r an
appeal, etc.
o rd e r p a s s e d b y th e S ta te B e n c h o r A re a B e n c h e s o f th e A p p e lla te T rib u n a l u n d e r
su b -se c tio n (1) o f se c tio n 113 o r an o rd e r p a ss e d b y th e H ig h C o u rt u n d e r se c tio n 117, as th e
case m a y b e, sh all b e p a y a b le in a c c o rd a n c e w ith th e o rd e r so p assed .
Appeal not to 120. (1) T h e B o a rd m ay, o n th e re c o m m e n d a tio n s o f th e C o u n c il, fro m tim e to tim e,
be filed in issu e o rd ers o r in stru c tio n s o r d ire c tio n s fix in g su c h m o n e ta ry lim its, as it m a y d e e m fit, fo r
certain cases.
th e p u rp o se s o f re g u la tin g th e filin g o f a p p eal o r a p p lic a tio n b y th e o ffic e r o f th e c e n tra l tax
u n d e r th e p ro v isio n s o f th is C hapter.
( 2 ) W h e re , in p u rs u a n c e o f th e o rd e rs o r in s tru c tio n s o r d ire c tio n s is s u e d u n d e r

su b -sectio n (1), th e o ffic e r o f th e c en tral tax h as n o t file d an ap p e a l o r ap p lic a tio n ag a in st any
d ec isio n o r o rd e r p a ss e d u n d e r th e p ro v isio n s o f this A c t, it shall n o t p re c lu d e su c h o ffic e r
o f th e c e n tra l tax fro m filin g ap p eal o r a p p lic a tio n in an y o th e r c a se in v o lv in g th e sa m e o r
sim ila r issu es o r q u e stio n s o f law.
(5) N o tw ith sta n d in g th e fa c t th a t n o ap p eal o r a p p lic a tio n h as b e e n file d b y th e o ffic e r

o f th e c e n tr a l ta x p u r s u a n t to th e o rd e rs o r in s tr u c tio n s o r d ir e c tio n s is s u e d u n d e r
su b -se c tio n (1), n o p e rso n , b e in g a p a rty in a p p eal o r a p p lic a tio n shall c o n te n d th a t th e
o ffic e r o f th e c e n tra l ta x h as a c q u ie sc e d in th e d e c isio n o n th e d isp u te d issu e b y n o t filin g an

ap p eal o r ap p licatio n .
(4) T h e A p p e lla te T rib u n a l o r c o u rt h e a rin g su c h ap p eal o r a p p lic a tio n sh all h a v e

re g a rd to th e c irc u m sta n c e s u n d e r w h ic h ap p e a l o r a p p lic a tio n w as n o t file d b y th e o ffic e r o f
th e c e n tra l ta x in p u rs u a n c e o f th e o rd e rs o r in s tru c tio n s o r d ire c tio n s is s u e d u n d e r
su b -se c tio n (1).
121. N o tw ith s ta n d in g a n y th in g to th e c o n tra ry in a n y p ro v isio n s o f th is A c t, n o Non

ap p eal sh all lie a g a in st an y d e c isio n ta k e n o r o rd e r p a ss e d b y an o ffic e r o f ce n tra l ta x if su ch appealable
decisions and
d ec isio n ta k e n o r o rd e r p a ss e d re la te s to an y o n e o r m o re o f th e fo llo w in g m atters, n a m e ly :—
orders.
(a ) an o rd e r o f th e C o m m issio n e r o r o th e r au th o rity e m p o w e re d to d ire c t tra n sfe r
o f p ro c e e d in g s fro m o n e o ffic e r to a n o th e r o fficer; o r
(b) an o rd e r p e rta in in g to th e seiz u re o r re te n tio n o f b o o k s o f acco u n t, re g iste r

a n d o th e r d o c u m e n ts; o r
(c) an o rd e r sa n c tio n in g p ro se c u tio n u n d e r this A c t; o r
(d) an o rd e r p a ss e d u n d e r se c tio n 80.
C H A P T E R X IX
Offences and penalties
122. (1) W h e re a ta x a b le p e rso n w h o — Penalty for

certain
(i) su p p lies an y g o o d s o r serv ices o r b o th w ith o u t issu e o f an y in v o ic e o r issu es offences.
an in c o rre c t o r fa lse in v o ic e w ith re g a rd to an y su c h supply;
( ii ) issu es an y in v o ic e o r b ill w ith o u t su p p ly o f g o o d s o r serv ices o r b o th in

v io la tio n o f th e p ro v isio n s o f this A c t o r th e ru le s m a d e th ere u n d e r;
( iii ) co lle c ts a n y am o u n t as ta x b u t fails to p a y th e sam e to th e G o v e rn m e n t

b e y o n d a p e rio d o f th re e m o n th s fro m th e d a te o n w h ic h su c h p a y m e n t b e c o m e s due;
(iv ) c o lle c ts an y ta x in c o n tra v e n tio n o f th e p ro v isio n s o f this A c t b u t fails to p a y

th e sa m e to th e G o v e rn m e n t b e y o n d a p e rio d o f th re e m o n th s fro m th e d a te o n w h ic h
su c h p a y m e n t b e c o m e s due;
(v) fails to d e d u c t th e ta x in a c c o rd a n c e w ith th e p ro v isio n s o f su b -se c tio n (1) o f

se c tio n 51, o r d ed u c ts an am o u n t w h ic h is less th a n th e am o u n t re q u ire d to b e d e d u c te d
u n d e r th e s a id s u b -s e c tio n , o r w h e re h e fa ils to p a y to th e G o v e rn m e n t u n d e r
su b -se c tio n (2) th ereo f, th e a m o u n t d e d u c te d as tax;
( v i ) fails to c o lle c t tax in a c c o rd a n c e w ith th e p ro v isio n s o f su b -se c tio n ( 1 ) o f

se c tio n 52, o r co lle c ts an am o u n t w h ic h is less th a n th e am o u n t re q u ire d to b e c o lle c te d
u n d e r th e sa id su b -se c tio n o r w h e re h e fails to p a y to th e G o v e rn m e n t th e am o u n t
c o lle c te d as ta x u n d e r su b -se c tio n (5) o f se c tio n 52;
( v ii ) tak es o r u tilise s in p u t tax c re d it w ith o u t actu a l re c e ip t o f g o o d s o r serv ices

o r b o th e ith e r fu lly o r p artially , in c o n tra v e n tio n o f th e p ro v isio n s o f this A c t o r th e
ru le s m a d e th ereu n d er;
( v iii ) fra u d u le n tly o b tain s re fu n d o f tax u n d e r th is A ct;
(ix ) tak es o r d istrib u te s in p u t tax c re d it in c o n tra v e n tio n o f se c tio n 2 0 , o r th e

ru le s m a d e th ereu n d er;
(x ) fa ls if ie s o r s u b s titu te s fin a n c ia l re c o rd s o r p ro d u c e s fa k e a c c o u n ts o r
d o c u m e n ts o r fu rn ish e s an y fa lse in fo rm a tio n o r re tu rn w ith an in te n tio n to ev a d e
p a y m e n t o f ta x d u e u n d e r this A ct;
(xi) is lia b le to b e re g iste re d u n d e r th is A c t b u t fails to o b ta in re g istra tio n ;
(xii) fu rn ish es an y fa lse in fo rm a tio n w ith re g a rd to re g istra tio n p artic u la rs, e ith e r
at th e tim e o f a p p ly in g fo r re g istra tio n , o r su b seq u en tly ;
(xiii) o b stru c ts o r p re v e n ts an y o ffic e r in d isc h a rg e o f h is d u tie s u n d e r th is A ct;
(xiv) tra n sp o rts an y ta x a b le g o o d s w ith o u t th e c o v e r o f d o c u m e n ts as m a y b e

sp e c ifie d in this b eh alf;
(x v ) su p p re sse s h is tu rn o v e r le a d in g to e v a sio n o f tax u n d e r th is A ct;
(x v i ) fails to k ee p , m a in ta in o r re ta in b o o k s o f a c c o u n t a n d o th e r d o c u m e n ts in
a c c o rd a n c e w ith th e p ro v isio n s o f th is A c t o r th e ru le s m a d e th ereu n d er;
(x v i i ) fa ils to fu rn is h in fo rm a tio n o r d o c u m e n ts c a lle d fo r b y an o ffic e r in

a c c o rd a n c e w ith th e p ro v isio n s o f th is A c t o r th e ru le s m a d e th e re u n d e r o r fu rn ish es
fa lse in fo rm a tio n o r d o c u m e n ts d u rin g an y p ro c e e d in g s u n d e r th is A ct;
(x v iii ) su p p lies, tra n sp o rts o r sto res an y g o o d s w h ic h h e h as re a so n s to b e lie v e

are lia b le to c o n fisc a tio n u n d e r th is A ct;
(xix) issu e s an y in v o ic e o r d o c u m e n t b y u sin g th e re g istra tio n n u m b e r o f an o th e r

re g iste re d p e rso n ;
(x x ) ta m p e rs w ith , o r d e stro y s an y m a te ria l e v id e n c e o r d o cu m en t;
(x x i ) d isp o se s o ff o r ta m p ers w ith an y g o o d s th a t h a v e b e e n d eta in e d , seized , o r

a tta c h e d u n d e r th is A ct,
h e sh all b e lia b le to p a y a p e n a lty o f te n th o u sa n d ru p e e s o r an a m o u n t e q u iv a le n t to th e tax

e v a d e d o r th e ta x n o t d e d u c te d u n d e r se c tio n 51 o r sh o rt d e d u c te d o r d e d u c te d b u t n o t p a id
to th e G o v e rn m e n t o r ta x n o t c o lle c te d u n d e r se c tio n 5 2 o r sh o rt c o lle c te d o r c o lle c te d b u t
n o t p a id to th e G o v e rn m e n t o r in p u t tax cred it av ailed o f o r p a sse d o n o r d istrib u te d irregularly,
o r th e re fu n d c la im e d frau d u len tly , w h ic h e v e r is h ig h er.
(2) A n y re g iste re d p e rso n w h o su p p lies an y g o o d s o r serv ices o r b o th o n w h ic h any

tax h as n o t b e e n p a id o r sh o rt-p a id o r e rro n e o u sly re fu n d e d , o r w h e re th e in p u t ta x c re d it has
b e e n w ro n g ly a v a ile d o r u tilise d ,—
(a ) fo r an y re a so n , o th e r th a n th e re a so n o f fra u d o r an y w ilfu l m issta te m e n t o r

su p p re ssio n o f facts to e v a d e tax , sh all b e lia b le to a p e n a lty o f te n th o u sa n d ru p e e s o r
ten p e r cent. o f th e ta x d u e fro m su c h p e rso n , w h ic h e v e r is h ig h er;
(b) fo r re a so n o f fra u d o r an y w ilfu l m issta te m e n t o r su p p re ssio n o f facts to

e v a d e tax , sh all b e lia b le to a p e n a lty eq u a l to te n th o u sa n d ru p e e s o r th e tax d u e fro m
su c h p e rso n , w h ic h e v e r is h igher.
(5) A n y p e rso n w h o —
(a ) a id s o r a b e ts a n y o f th e o ff e n c e s s p e c ifie d in c la u s e s (i) to (x x i) o f
su b -se c tio n (1);
( b ) a c q u ire s p o ss e ssio n o f, o r in an y w a y c o n c e rn s h im s e lf in tra n sp o rtin g ,

re m o v in g , d ep o sitin g , k ee p in g , c o n c e a lin g , su p p ly in g , o r p u rc h a sin g o r in an y o th e r
m a n n e r d eals w ith an y g o o d s w h ic h h e k n o w s o r h as re a so n s to b e lie v e are lia b le to
c o n fisc a tio n u n d e r this A c t o r th e ru le s m a d e th ere u n d e r;
(c) re c e iv e s o r is in an y w a y c o n c e rn e d w ith th e su p p ly of, o r in an y o th e r

m a n n e r d eals w ith an y su p p ly o f serv ices w h ic h h e k n o w s o r h as re a so n s to b e lie v e
are in co n tra v e n tio n o f an y p ro v isio n s o f this A c t o r th e ru le s m a d e th ere u n d e r;
(d) fails to a p p e a r b e fo re th e o ffic e r o f ce n tra l tax , w h e n is su e d w ith a su m m o n

fo r a p p e a ra n c e to g iv e e v id e n c e o r p ro d u c e a d o c u m e n t in an in q u iry ;
(e) fails to issu e in v o ic e in a c c o rd a n c e w ith th e p ro v isio n s o f th is A c t o r th e ru le s

m a d e th e re u n d e r o r fails to a c c o u n t fo r an in v o ic e in h is b o o k s o f acco u n t,
shall b e lia b le to a p e n a lty w h ic h m a y e x te n d to tw e n ty -fiv e th o u sa n d ru p ees.
123. If a p e rso n w h o is re q u ire d to fu rn ish an in fo rm a tio n re tu rn u n d e r se c tio n 150 fails Penalty for
to d o so w ith in th e p e rio d sp e c ifie d in th e n o tic e is su e d u n d e r su b -se c tio n (5) th ereo f, th e failure to
furnish
p ro p e r o ffic e r m a y d ire c t th a t su c h p e rs o n shall b e lia b le to p a y a p e n a lty o f o n e h u n d re d
information
ru p e e s fo r e a c h d a y o f th e p e rio d d u rin g w h ic h th e fa ilu re to fu rn ish su c h re tu rn c o n tin u e s: return.
P ro v id e d th a t th e p e n a lty im p o se d u n d e r this se c tio n shall n o t e x c e e d fiv e th o u sa n d
ru p e e s.
124. If an y p e rso n re q u ire d to fu rn ish an y in fo rm a tio n o r re tu rn u n d e r se c tio n 151,— Fine for

failure to
(a ) w ith o u t re a so n a b le c a u se fails to fu rn ish su c h in fo rm a tio n o r re tu rn as m a y furnish
b e re q u ire d u n d e r th a t sectio n , o r statistics.
(b) w ilfu lly fu rn ish e s o r cau se s to fu rn ish an y in fo rm a tio n o r re tu rn w h ic h h e

k n o w s to b e false,
h e sh all b e p u n is h a b le w ith a fin e w h ic h m a y e x te n d to te n th o u sa n d ru p e e s a n d in c a se o f a

co n tin u in g o ffe n c e to a fu rth e r fin e w h ic h m a y e x te n d to o n e h u n d re d ru p e e s fo r e a c h d ay
a fte r th e first d a y d u rin g w h ic h th e o ffe n c e c o n tin u e s su b je c t to a m a x im u m lim it o f tw e n ty -
fiv e th o u sa n d ru p ees.
125. A n y p e rso n , w h o c o n tra v e n e s an y o f th e p ro v isio n s o f th is A c t o r an y ru le s m a d e General

th e re u n d e r fo r w h ic h n o p e n a lty is se p a ra te ly p ro v id e d fo r in th is A c t, sh all b e lia b le to a penalty.
p e n a lty w h ic h m a y e x te n d to tw e n ty -fiv e th o u sa n d ru p ees.
126. (1) N o o ffic e r u n d e r th is A c t shall im p o se an y p e n a lty fo r m in o r b re a c h e s o f tax General

re g u la tio n s o r p ro c e d u ra l re q u ire m e n ts a n d in p a rtic u la r, a n y o m is s io n o r m is ta k e in disciplines
related to
d o c u m e n ta tio n w h ic h is e a sily re c tifia b le a n d m a d e w ith o u t fra u d u le n t in te n t o r g ro ss
penalty.
n eg lig e n c e .
E x p l a n a tio n .— F o r th e p u rp o s e o f this su b -se c tio n ,—
(a ) a b re a c h sh all b e c o n sid e re d a ‘m in o r b re a c h ’ if th e am o u n t o f ta x in v o lv e d is
less th a n fiv e th o u sa n d ru p ees;
( b ) an o m issio n o r m ista k e in d o c u m e n ta tio n shall b e c o n sid e re d to b e ea sily

re c tifia b le if th e sam e is an e rro r a p p a re n t o n th e fa c e o f reco rd .
(2) T h e p e n a lty im p o se d u n d e r this A c t sh all d e p e n d o n th e facts a n d c irc u m sta n c e s o f

e a c h ca se a n d shall b e c o m m e n su ra te w ith th e d e g re e a n d se v e rity o f th e b reach .
(5) N o p e n a lty sh all b e im p o se d o n an y p e rso n w ith o u t g iv in g h im an o p p o rtu n ity o f

b e in g h eard.
(4) T h e o ffic e r u n d e r this A c t sh all w h ile im p o sin g p e n a lty in an o rd e r fo r a b re a c h o f

an y law , re g u la tio n o r p ro c e d u ra l re q u ire m e n t, sp e c ify th e n a tu re o f th e b re a c h a n d th e
a p p lic a b le law , re g u la tio n o r p ro c e d u re u n d e r w h ic h th e a m o u n t o f p e n a lty fo r th e b re a c h has
b e e n sp ecified .
(5) W h e n a p e rso n v o lu n ta rily d isc lo se s to an o ffic e r u n d e r th is A c t th e circ u m sta n c e s

o f a b re a c h o f th e ta x law , re g u la tio n o r p ro c e d u ra l re q u ire m e n t p rio r to th e d isc o v e ry o f th e
b re a c h b y th e o ffic e r u n d e r th is A ct, th e p ro p e r o ffic e r m a y c o n sid e r this fa c t as a m itig a tin g
fa c to r w h e n q u a n tify in g a p e n a lty fo r th a t p erso n .
(6 ) T h e p ro v isio n s o f th is se c tio n shall n o t a p p ly in su c h c a se s w h e re th e p e n a lty

sp e c ifie d u n d e r th is A c t is e ith e r a fix e d su m o r e x p re s se d as a fix e d p e rcen tag e.
127. W h e re th e p ro p e r o ffic e r is o f th e v ie w th a t a p e rs o n is lia b le to a p e n a lty a n d th e Power to

sam e is n o t c o v e re d u n d e r a n y p ro c e e d in g s u n d e r se c tio n 6 2 o r se c tio n 63 o r se c tio n 6 4 o r impose
penalty in
certain cases.
sec tio n 73 o r se c tio n 7 4 o r se c tio n 129 o r se c tio n 130, h e m a y issu e an o rd e r le v y in g su ch

p e n a lty a fte r g iv in g a re a so n a b le o p p o rtu n ity o f b e in g h e a rd to su c h p e rso n .
Power to 128. T h e G o v e rn m e n t m ay, b y n o tific a tio n , w aiv e in p a rt o r full, any p e n a lty re fe rre d to
waive penalty in se c tio n 122 o r se c tio n 123 o r se c tio n 125 o r an y la te fe e re fe rre d to in se c tio n 4 7 fo r su ch
or fee or both.
class o f ta x p a y e rs a n d u n d e r su c h m itig a tin g c irc u m sta n c e s as m a y b e sp e c ifie d th e re in o n
th e re c o m m e n d a tio n s o f th e C oun cil.
Detention, 129. ( ! ) N o tw ith sta n d in g a n y th in g c o n ta in e d in th is A c t, w h e re an y p e rso n tran sp o rts

seizure and an y g o o d s o r sto res an y g o o d s w h ile th e y are in tra n sit in c o n tra v e n tio n o f th e p ro v isio n s o f
release of
this A c t o r th e ru le s m a d e th ereu n d er, all su ch g o o d s a n d c o n v e y a n c e u se d as a m ean s o f
goods and
conveyances tra n sp o rt fo r c a rry in g th e sa id g o o d s a n d d o c u m e n ts re la tin g to su ch g o o d s a n d c o n v e y a n c e
in transit. shall b e lia b le to d e te n tio n o r se iz u re a n d a fte r d e te n tio n o r seizu re, shall b e re le a se d ,—
(a ) o n p a y m e n t o f th e a p p lic a b le ta x a n d p e n a lty eq u a l to o n e h u n d re d p e r cent.

o f th e tax p a y a b le o n su c h g o o d s and, in c a se o f e x e m p te d g o o d s, o n p a y m e n t o f an
am o u n t eq u a l to tw o p e r cent. o f th e v a lu e o f g o o d s o r tw e n ty -fiv e th o u sa n d ru p ees,
w h ic h e v e r is less, w h e re th e o w n e r o f th e g o o d s co m e s fo rw a rd fo r p a y m e n t o f su ch
tax a n d p en a lty ;
(b) o n p a y m e n t o f th e a p p lic a b le tax a n d p e n a lty eq u a l to th e fifty p e r cent. o f th e

v a lu e o f th e g o o d s re d u c e d b y th e ta x am o u n t p a id th e re o n and, in c a se o f e x e m p te d
g o o d s, o n p a y m e n t o f an am o u n t eq u a l to fiv e p e r cent. o f th e v a lu e o f g o o d s o r
tw e n ty -fiv e th o u sa n d ru p e e s, w h ic h e v e r is less, w h e re th e o w n e r o f th e g o o d s does
n o t c o m e fo rw a rd fo r p a y m e n t o f su c h ta x a n d p en a lty ;
(c) u p o n fu rn ish in g a se c u rity e q u iv a le n t to th e am o u n t p a y a b le u n d e r cla u se (a)

o r c la u se (b) in su c h fo rm a n d m a n n e r as m a y b e p rescrib ed :
P ro v id e d th a t n o su c h g o o d s o r c o n v e y a n c e shall b e d e ta in e d o r se iz e d w ith o u t
se rv in g an o rd e r o f d e te n tio n o r se iz u re o n th e p e rs o n tra n sp o rtin g th e goods.
(2) T h e p ro v isio n s o f su b -se c tio n (6) o f se c tio n 6 7 shall, m u ta tis m u ta n d is , a p p ly fo r

d ete n tio n a n d seiz u re o f g o o d s a n d c o n v ey an ces.
(5) T h e p ro p e r o ffic e r d e ta in in g o r se iz in g g o o d s o r c o n v e y a n c e s sh all issu e a n o tic e

sp e c ify in g th e ta x a n d p e n a lty p a y a b le a n d th ereafter, p a ss an o rd e r fo r p a y m e n t o f ta x an d
p e n a lty u n d e r c la u se ( a ) o r c la u se ( b ) o r c la u se ( c ).
(4 ) N o tax , in te re st o r p e n a lty shall b e d e te rm in e d u n d e r su b -se c tio n (5) w ith o u t g iv in g

th e p e rso n c o n c e rn e d an o p p o rtu n ity o f b e in g h eard .
(5) O n p a y m e n t o f am o u n t re fe rre d in su b -se c tio n (1), all p ro c e e d in g s in re s p e c t o f th e

n o tic e sp e c ifie d in su b -se c tio n (5) shall b e d e e m e d to b e co n clu d e d .
(6) W h e re th e p e rso n tra n sp o rtin g an y g o o d s o r th e o w n e r o f th e g o o d s fails to p a y

th e a m o u n t o f ta x a n d p e n a lty as p ro v id e d in su b -se c tio n ( 1 ) w ith in sev en day s o f su ch
d ete n tio n o r seizu re, fu rth e r p ro c e e d in g s sh all b e in itia te d in a c c o rd a n c e w ith th e p ro v isio n s
o f se c tio n 130:
P ro v id e d th a t w h e re th e d e ta in e d o r se iz e d g o o d s are p e rish a b le o r h a z a rd o u s in
n a tu re o r are lik e ly to d e p re c ia te in v a lu e w ith p a ssa g e o f tim e, th e sa id p e rio d o f sev en day s
m a y b e re d u c e d b y th e p ro p e r officer.
Confiscation 130. (1) N o tw ith sta n d in g a n y th in g c o n ta in e d in th is A ct, if an y p e rso n —
of goods or
conveyances (i) su p p lies o r re c e iv e s a n y g o o d s in c o n tra v e n tio n o f a n y o f th e p ro v isio n s o f
and levy of
this A c t o r th e ru le s m a d e th e re u n d e r w ith in te n t to e v a d e p a y m e n t o f tax; o r
penalty.
( ii ) d o es n o t a c c o u n t fo r an y g o o d s o n w h ic h h e is lia b le to p a y tax u n d e r this
A ct; o r
( iii ) su p p lies an y g o o d s lia b le to ta x u n d e r this A c t w ith o u t h a v in g a p p lie d fo r

re g istra tio n ; o r
(iv) c o n tra v e n e s an y o f th e p ro v isio n s o f th is A c t o r th e ru le s m a d e th e re u n d e r

w ith in te n t to e v a d e p a y m e n t o f tax; o r
(v) u se s a n y c o n v e y a n c e as a m e a n s o f tra n s p o rt fo r c a rria g e o f g o o d s in

co n tra v e n tio n o f th e p ro v isio n s o f this A c t o r th e ru le s m a d e th e re u n d e r u n le ss th e
o w n e r o f th e c o n v e y a n c e p ro v e s th a t it w a s so u s e d w ith o u t th e k n o w le d g e o r
c o n n iv a n c e o f th e o w n e r h im se lf, h is ag en t, if any, a n d th e p e rs o n in c h arg e o f th e
conveyance,
then , all su c h g o o d s o r c o n v e y a n c e s sh all b e lia b le to c o n fisc a tio n a n d th e p e rso n shall b e

liab le to p e n a lty u n d e r se c tio n 122.
(2) W h e n e v e r c o n fisc a tio n o f an y g o o d s o r c o n v e y a n c e is a u th o rise d b y th is A c t, th e

o fficer ad ju d g in g it shall g iv e to th e o w n e r o f th e g o o d s an o p tio n to p a y in lie u o f co n fiscatio n ,
su c h fin e as th e sa id o ffic e r th in k s fit:
P ro v id e d th a t su c h fin e le v ia b le sh a ll n o t e x c e e d th e m a rk e t v a lu e o f th e g o o d s
co n fisc a te d , less th e ta x c h a rg e a b le th e re o n :
P ro v id e d fu rth e r th a t th e a g g re g a te o f su c h fin e a n d p e n a lty le v ia b le sh all n o t b e less

th a n th e am o u n t o f p e n a lty le v ia b le u n d e r su b -se c tio n (1) o f se c tio n 129:
P ro v id e d also th a t w h e re an y su c h c o n v e y a n c e is u se d fo r th e c a rria g e o f th e g o o d s o r
p asse n g e rs fo r h ire , th e o w n e r o f th e c o n v e y a n c e sh all b e g iv e n an o p tio n to p a y in lie u o f
th e c o n fisc a tio n o f th e c o n v e y a n c e a fin e e q u a l to th e ta x p a y a b le o n th e g o o d s b e in g
tra n sp o rte d th ereo n .
(5) W h e re an y fin e in lie u o f c o n fisc a tio n o f g o o d s o r c o n v e y a n c e is im p o se d u n d e r

s u b -se c tio n ( 2 ), th e o w n e r o f su c h g o o d s o r c o n v e y a n c e o r th e p e rs o n re f e rre d to in
su b -se c tio n (1), sh all, in ad d itio n , b e lia b le to an y tax, p e n a lty a n d ch arg e s p a y a b le in re sp e c t
o f su c h g o o d s o r co n v ey an ce.
(4) N o o rd e r fo r c o n fisc a tio n o f g o o d s o r c o n v e y a n c e o r fo r im p o sitio n o f p e n a lty shall

b e is su e d w ith o u t g iv in g th e p e rso n an o p p o rtu n ity o f b e in g h eard .
(5) W h e re an y g o o d s o r c o n v e y a n c e a re c o n fisc a te d u n d e r this A c t, th e title o f su ch

g oo d s o r c o n v e y a n c e sh all th e re u p o n v e st in th e G o v ern m en t.
(6 ) T h e p ro p e r o ffic e r a d ju d g in g c o n fisc a tio n sh all ta k e a n d h o ld p o sse ssio n o f th e

th in g s c o n fisc a te d a n d e v e ry o ffic e r o f P o lic e , o n th e re q u isitio n o f su c h p ro p e r officer, shall
assist h im in ta k in g a n d h o ld in g su c h p o ssessio n .
(7) T h e p ro p e r o ffic e r m ay, a fte r sa tisfy in g h im s e lf th a t th e c o n fisc a te d g o o d s o r

c o n v e y a n c e a re n o t re q u ire d in a n y o th e r p ro c e e d in g s u n d e r th is A c t a n d a fte r g iv in g
re a so n a b le tim e n o t e x c e e d in g th ree m o n th s to p a y fin e in lie u o f c o n fisc a tio n , d isp o se o f
su c h g o o d s o r c o n v e y a n c e a n d d e p o sit th e sale p ro c e e d s th e re o f w ith th e G o v ern m en t.
131. W ith o u t p re ju d ic e to th e p ro v isio n s c o n ta in e d in th e C o d e o f C rim in a l P ro ce d u re , Confiscation

2 of 1974. 1973, n o c o n fisc a tio n m a d e o r p e n a lty im p o se d u n d e r th e p ro v isio n s o f th is A c t o r th e ru le s or penalty
not to
m a d e th e re u n d e r sh all p re v e n t th e in flic tio n o f an y o th e r p u n is h m e n t to w h ic h th e p e rso n
interfere with
affe c te d th e re b y is lia b le u n d e r th e p ro v isio n s o f th is A c t o r u n d e r an y o th e r la w fo r th e tim e other
b e in g in force. punishments.
132. (1) W h o e v e r c o m m its an y o f th e fo llo w in g o ffe n c e s, n a m e ly :— Punishment

for certain
(a ) su p p lie s an y g o o d s o r serv ic e s o r b o th w ith o u t is su e o f a n y in v o ic e , in offences.
v io la tio n o f th e p ro v isio n s o f this A c t o r th e ru le s m a d e th ereu n d er, w ith th e in te n tio n
to ev a d e tax;
(b) issu e s an y in v o ic e o r b ill w ith o u t su p p ly o f g o o d s o r serv ices o r b o th in

v io la tio n o f th e p ro v isio n s o f this A c t, o r th e ru le s m a d e th e re u n d e r le a d in g to w ro n g fu l
a v a ilm e n t o r u tilisa tio n o f in p u t ta x c re d it o r re fu n d o f tax;
(c) av ails in p u t ta x c re d it u sin g su c h in v o ic e o r b ill re fe rre d to in c la u se (b);
( d) co lle c ts a n y am o u n t as ta x b u t fails to p a y th e sam e to th e G o v e rn m e n t

b e y o n d a p e rio d o f th re e m o n th s fro m th e d a te o n w h ic h su c h p a y m e n t b e c o m e s due;
(e) e v a d e s tax , fra u d u le n tly av ails in p u t ta x cre d it o r fra u d u le n tly o b ta in s re fu n d

a n d w h e re su c h o ffe n c e is n o t c o v e re d u n d e r c lau ses (a ) to (d);
(f) fa ls ifie s o r s u b s titu te s fin a n c ia l re c o rd s o r p ro d u c e s fa k e a c c o u n ts o r

d o c u m e n ts o r fu rn ish e s an y fa lse in fo rm a tio n w ith an in te n tio n to e v a d e p a y m e n t o f
tax d u e u n d e r th is A ct;
(g) o b stru c ts o r p re v e n ts an y o ffic e r in th e d isc h a rg e o f h is d u ties u n d e r this

A c t;
(h) a c q u ire s p o ss e ssio n o f, o r in an y w a y c o n c e rn s h im s e lf in tra n sp o rtin g ,

re m o v in g , d ep o sitin g , k ee p in g , c o n c e a lin g , su p p ly in g , o r p u rc h a sin g o r in an y o th e r
m a n n e r d eals w ith , an y g o o d s w h ic h h e k n o w s o r h as re a so n s to b e lie v e are lia b le to
c o n fisc a tio n u n d e r this A c t o r th e ru le s m a d e th ere u n d e r;
(i) re c e iv e s o r is in an y w a y c o n c e rn e d w ith th e su p p ly o f, o r in an y o th e r m a n n e r
d eals w ith an y su p p ly o f serv ices w h ic h h e k n o w s o r h a s re a so n s to b e lie v e are in
co n tra v e n tio n o f an y p ro v isio n s o f this A c t o r th e ru le s m a d e th ere u n d e r;
(j) tam p ers w ith o r d e stro y s an y m a te ria l e v id e n c e o r d o cu m en ts;
(k ) fails to su p p ly an y in fo rm a tio n w h ic h h e is re q u ire d to su p p ly u n d e r th is A c t

o r th e ru le s m a d e th e re u n d e r o r (u n less w ith a re a so n a b le be lie f, th e b u rd e n o f p ro v in g
w h ic h shall b e u p o n h im , th a t th e in fo rm a tio n su p p lie d b y h im is tru e) su p p lie s false
in fo rm atio n ; o r
(l) attem p ts to co m m it, o r abets th e c o m m issio n o f any o f th e o ffen ces m e n tio n e d

in c lau ses (a ) to (k) o f th is sectio n ,
shall b e p u n ish a b le —
( i ) in cases w h e re th e am o u n t o f ta x e v a d e d o r th e am o u n t o f in p u t ta x c red it
w ro n g ly a v ailed o r u tilise d o r th e am o u n t o f re fu n d w ro n g ly tak e n e x ceed s fiv e h u n d re d
la k h ru p ees, w ith im p riso n m e n t fo r a te rm w h ic h m a y e x te n d to fiv e y ears a n d w ith fine;
( ii ) in cases w h e re th e a m o u n t o f ta x e v a d e d o r th e am o u n t o f in p u t ta x c red it
w ro n g ly a v ailed o r u tilise d o r th e am o u n t o f re fu n d w ro n g ly tak e n ex ceed s tw o h u n d re d
la k h ru p e e s b u t do es n o t e x c e e d fiv e h u n d re d la k h ru p ees, w ith im p riso n m e n t fo r a
te rm w h ic h m a y e x te n d to th re e y e a rs a n d w ith fine;
( iii ) in th e ca se o f an y o th e r o ffe n c e w h e re th e a m o u n t o f ta x e v a d e d o r th e
am o u n t o f in p u t tax c re d it w ro n g ly a v a ile d o r u tilise d o r th e am o u n t o f re fu n d w ro n g ly
tak e n e x ceed s o n e h u n d re d la k h ru p e e s b u t d o es n o t e x c e e d tw o h u n d re d la k h ru p ees,
w ith im p riso n m e n t fo r a te rm w h ic h m a y e x te n d to o n e y e a r a n d w ith fine;
(iv) in cases w h e re h e co m m its o r abets th e c o m m issio n o f an o ffe n c e sp e c ifie d

in c la u se (f) o r c la u se (g) o r c la u se (j ), h e shall b e p u n is h a b le w ith im p riso n m e n t fo r a
te rm w h ic h m a y e x te n d to six m o n th s o r w ith fin e o r w ith both.
(2) W h e re an y p e rs o n c o n v ic te d o f an o ffe n c e u n d e r th is se c tio n is ag a in c o n v ic te d o f

an o ffe n c e u n d e r this sectio n , th en , h e shall b e p u n is h a b le fo r th e se c o n d a n d fo r e v ery
su b se q u e n t o ffe n c e w ith im p riso n m e n t fo r a te rm w h ic h m a y e x te n d to fiv e y e a rs a n d w ith
fine.
(3) T h e im p riso n m e n t re fe rre d to in c lau ses (i), (ii) a n d (iii) o f su b -se c tio n (1) an d
su b -se c tio n (2) shall, in th e a b se n c e o f sp ecial a n d ad e q u a te re a so n s to th e c o n tra ry to b e
re c o rd e d in th e ju d g m e n t o f th e C o u rt, b e fo r a te rm n o t less th a n six m onths.
2 of 1974. (4) N o tw ith sta n d in g a n y th in g c o n ta in e d in th e C o d e o f C rim in a l P ro c e d u re , 1973, all

o ffen ces u n d e r th is A ct, e x c e p t th e o ffe n c e s re fe rre d to in su b -se c tio n (5) shall b e n o n
co g n iz a b le a n d b ailab le.
(5) T h e o ffe n c e s sp e c ifie d in c la u se (a ) o r c la u se (b ) o r cla u se (c) o r cla u se (d ) o f

su b -se c tio n (1) a n d p u n is h a b le u n d e r c la u se (i) o f th a t su b -se c tio n sh all b e c o g n iz a b le an d
n o n -b ailab le.
(6 ) A p e rs o n shall n o t b e p ro s e c u te d fo r an y o ffe n c e u n d e r this se c tio n e x c e p t w ith th e

p re v io u s sa n c tio n o f th e C o m m issio n er.
E x p l a n a tio n .— F o r th e p u rp o se s o f th is se c tio n , th e te r m “ta x ” sh a ll in c lu d e th e

am o u n t o f ta x e v a d e d o r th e a m o u n t o f in p u t ta x c re d it w ro n g ly a v a ile d o r u tilise d o r re fu n d
w ro n g ly ta k e n u n d e r th e p ro v isio n s o f th is A c t, th e S tate G o o d s a n d S erv ices T ax A c t, th e
In te g ra te d G o o d s a n d S erv ices T ax A c t o r th e U n io n T errito ry G o o d s a n d S erv ices Tax A c t
a n d cess le v ie d u n d e r th e G o o d s a n d S erv ices T ax (C o m p e n sa tio n to S tates) A ct.
133. (1) W h e re an y p e rso n e n g a g e d in c o n n e c tio n w ith th e c o lle c tio n o f statistics Liability of

u n d e r se c tio n 151 o r c o m p ila tio n o r c o m p u te risa tio n th e re o f o r if an y o ffic e r o f c e n tra l tax officers and
certain other
h a v in g access to in fo rm a tio n sp e c ifie d u n d e r su b -se c tio n (1) o f se c tio n 150, o r if a n y p e rso n
persons.
e n g a g e d in c o n n e c tio n w ith th e p ro v isio n o f se rv ic e o n th e c o m m o n p o rta l o r th e ag e n t o f
co m m o n p o rta l, w ilfu lly d isc lo se s an y in fo rm a tio n o r th e c o n ten ts o f a n y re tu rn fu rn ish e d
u n d e r th is A c t o r ru le s m a d e th e re u n d e r o th e rw ise th a n in e x e c u tio n o f h is d u ties u n d e r th e
said sectio n s o r fo r th e p u rp o se s o f p ro se c u tio n fo r an o ffe n c e u n d e r this A c t o r u n d e r any
o th e r A c t fo r th e tim e b e in g in fo rce, h e shall b e p u n is h a b le w ith im p riso n m e n t fo r a te rm
w h ic h m a y e x te n d to six m o n th s o r w ith fin e w h ic h m a y e x te n d to tw e n ty -fiv e th o u sa n d
ru p e e s, o r w ith both.
(2) A n y p e rso n —
( a ) w h o is a G o v e rn m e n t se rv a n t shall n o t b e p ro s e c u te d fo r an y o ffe n c e u n d e r
this se c tio n e x c e p t w ith th e p re v io u s sa n c tio n o f th e G o v e rn m e n t;
( b ) w h o is n o t a G o v e rn m e n t se rv a n t shall n o t b e p ro s e c u te d fo r an y o ffe n c e
u n d e r this se c tio n e x c e p t w ith th e p re v io u s sa n c tio n o f th e C o m m issio n er.
134. N o c o u rt sh all ta k e c o g n iz a n c e o f an y o ffe n c e p u n is h a b le u n d e r th is A c t o r th e Cognizance of

ru le s m a d e th e re u n d e r e x c e p t w ith th e p re v io u s sa n c tio n o f th e C o m m issio n e r, a n d n o c o u rt offences.
in fe rio r to th a t o f a M a g istra te o f th e F irst C lass, shall try an y su c h o ffen ce.
135. In an y p ro se c u tio n fo r an o ffe n c e u n d e r th is A c t w h ic h re q u ire s a c u lp a b le m en tal Presumption

state o n th e p a rt o f th e a ccu sed , th e c o u rt sh all p re s u m e th e e x iste n c e o f su c h m e n ta l state of culpable
mental state.
b u t it sh all b e a d e fe n c e fo r th e a c c u se d to p ro v e th e fa c t th a t h e h a d n o su c h m e n ta l state
w ith re s p e c t to th e a ct c h a rg e d as an o ffe n c e in th a t p ro se c u tio n .
E x p l a n a tio n .— F o r th e p u rp o se s o f th is sectio n ,—
(i) th e ex p re ssio n “c u lp a b le m e n ta l sta te ” in clu d es in te n tio n , m o tiv e, k n o w le d g e

o f a fact, a n d b e lie f in , o r re a so n to b e lie v e , a fact;
( ii ) a fa c t is sa id to b e p ro v e d o n ly w h e n th e c o u rt b e lie v e s it to e x ist b e y o n d
re a so n a b le d o u b t a n d n o t m e re ly w h e n its e x iste n c e is e sta b lish e d b y a p re p o n d e ra n c e
o f p ro b ab ility .
136. A sta te m e n t m a d e a n d sig n e d b y a p e rs o n o n a p p e a ra n c e in re sp o n se to any Relevancy of

su m m o n s is su e d u n d e r se c tio n 7 0 d u rin g th e c o u rse o f a n y in q u iry o r p ro c e e d in g s u n d e r statements
this A c t sh all b e re le v a n t, fo r th e p u rp o s e o f p ro v in g , in an y p ro se c u tio n fo r an o ffe n c e u n d e r under certain
circumstances.
this A c t, th e tru th o f th e facts w h ic h it c o n ta in s,—
( a ) w h e n th e p e rs o n w h o m a d e th e sta te m e n t is d e a d o r c a n n o t b e fo u n d , o r is
in c a p a b le o f g iv in g ev id e n c e , o r is k ept o u t o f th e w a y b y th e a d v e rse party, o r w h o se
p re se n c e c a n n o t b e o b ta in e d w ith o u t an am o u n t o f d e la y o r e x p e n se w h ich , u n d e r th e
c irc u m sta n c e s o f th e case, th e c o u rt co n sid e rs u n re a so n a b le ; o r
(b) w h e n th e p e rso n w h o m a d e th e sta te m e n t is e x a m in e d as a w itn ess in th e case

b e fo re th e co u rt a n d th e co u rt is o f th e o p in io n th at, h a v in g re g a rd to th e circ u m sta n c e s
o f th e case, th e sta te m e n t sh o u ld b e a d m itte d in e v id e n c e in th e in te re st o f ju stice.
Offences by 137. ( ! ) W h e re an o ffe n c e c o m m itte d b y a p e rs o n u n d e r this A c t is a c o m p an y , e v ery

companies.
p e rso n w h o , at th e tim e th e o ffe n c e w as c o m m itte d w as in c h a rg e of, a n d w as re sp o n sib le to,
th e c o m p a n y fo r th e c o n d u c t o f b u sin e ss o f th e co m p an y , as w e ll as th e co m p an y , sh all b e
d e e m e d to b e g u ilty o f th e o ffe n c e a n d sh all b e lia b le to b e p ro c e e d e d ag a in st a n d p u n ish e d
accordingly.
(2) N o tw ith sta n d in g a n y th in g c o n ta in e d in su b -se c tio n (1), w h e re an o ffe n c e u n d e r

this A c t h as b e e n c o m m itte d b y a c o m p a n y a n d it is p ro v e d th a t th e o ffe n c e h a s b e e n
c o m m itte d w ith th e c o n se n t o r c o n n iv a n c e of, o r is a ttrib u ta b le to an y n e g lig e n c e o n th e p a rt
of, an y directo r, m an ag e r, se c re ta ry o r o th e r o ffic e r o f th e c o m p an y , su c h d irecto r, m an ag er,
sec re ta ry o r o th e r o ffic e r sh all also b e d e e m e d to b e g u ilty o f th a t o ffe n c e a n d shall b e liab le
to b e p ro c e e d e d ag a in st a n d p u n ish e d acco rd in g ly .
(5) W h e re an o ffe n c e u n d e r th is A c t h as b e e n c o m m itte d b y a ta x a b le p e rs o n b e in g a

p artn e rsh ip firm o r a L im ite d L ia b ility P a rtn e rsh ip o r a H in d u U n d iv id e d F a m ily o r a trust, the
p a rtn e r o r k a r ta o r m a n a g in g tru ste e sh all b e d e e m e d to b e g u ilty o f th a t o ffe n c e a n d sh all b e
liab le to b e p ro c e e d e d ag a in st an d p u n ish e d acco rd in g ly a n d th e p ro v isio n s o f su b -se c tio n (2)
shall, m u ta tis m u ta n d is , a p p ly to su c h p erso n s.
(4 ) N o th in g c o n ta in e d in th is se c tio n sh a ll re n d e r a n y su c h p e rs o n lia b le to an y
p u n ish m e n t p ro v id e d in th is A c t, if h e p ro v e s th a t th e o ffe n c e w as c o m m itte d w ith o u t his
k n o w le d g e o r th a t h e h a d e x e rc ise d all d u e d ilig e n c e to p re v e n t th e c o m m issio n o f su ch
offence.
E x p l a n a tio n .— F o r th e p u rp o se s o f th is se c tio n ,—
(i) “c o m p a n y ” m ean s a b o d y c o rp o ra te a n d in c lu d e s a firm o r o th e r asso c ia tio n

o f in d iv id u a ls; an d
(ii) “d ire c to r” , in re la tio n to a firm , m ean s a p a rtn e r in th e firm .
Compounding 138. (1) A n y o ffe n c e u n d e r th is A c t m ay, e ith e r b e fo re o r a fte r th e in s titu tio n o f

of offences. p ro se c u tio n , b e c o m p o u n d e d b y th e C o m m issio n e r o n p a y m e n t, b y th e p e rs o n a c c u se d o f
th e o ffen ce, to th e C e n tra l G o v e rn m e n t o r th e S tate G o v e rn m e n t, as th e c a se b e, o f su ch
co m p o u n d in g am o u n t in su c h m a n n e r as m a y b e p rescrib ed :
P ro v id e d th a t n o th in g c o n ta in e d in th is se c tio n shall a p p ly to—
( a ) a p e rs o n w h o h as b e e n a llo w e d to c o m p o u n d o n c e in re sp e c t o f an y o f th e
o ffen ces sp e c ifie d in clau ses (a ) to ( f o f su b -se c tio n (1) o f sectio n 132 an d th e o ffen ces
sp e c ifie d in c la u se (l) w h ic h are re la ta b le to o ffe n c e s sp e c ifie d in c lau ses (a ) to (f) o f
th e sa id su b -sectio n ;
( b ) a p e rso n w h o h as b e e n a llo w e d to c o m p o u n d o n c e in re s p e c t o f an y o ffen ce,

o th e r th a n th o se in cla u se ( a ), u n d e r this A c t o r u n d e r th e p ro v isio n s o f an y S tate
G o o d s a n d S erv ices Tax A c t o r th e U n io n T errito ry G o o d s a n d S erv ices Tax A c t o r th e
In te g ra te d G o o d s a n d S erv ices Tax A c t in re sp e c t o f su p p lies o f v a lu e e x c e e d in g o n e
c ro re ru p ees;
(c ) a p e rs o n w h o h as b e e n a c c u se d o f c o m m ittin g an o ffe n c e u n d e r th is A c t
w h ic h is also an o ffe n c e u n d e r an y o th e r la w fo r th e tim e b e in g in fo rce;
( d ) a p e rso n w h o h a s b e e n c o n v ic te d fo r an o ffe n c e u n d e r this A c t b y a co u rt;
(e) a p erso n w h o h as b een accu sed o f co m m ittin g an offen ce sp ecified in clau se (g)
o r c la u se ( j ) o r c la u se (k) o f su b -se c tio n (1) o f se c tio n 132; an d
( 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.
CHAPTER XX
Transitional provisions
139. (!) On and from the appointed day, every person registered under any of Migration
the of
existing laws and having a valid Permanent Account Number shall be issued a certificate of existing
registration on provisional basis, subject to such conditions and in such form and manner as taxpayers.
may be prescribed, which unless replaced by a final certificate of registration under
sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied
with.
(2) The final certificate of registration shall be granted in such 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 tax under sectionT10,
ra n sitio n a l
shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried arrangements
for input tax
forward in the return relating to the period ending with the day immediately preceding the
credit.
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
(iii) where the said amount of credit relates to goods manufactured and cleared
under such exemption notifications as are notified by the Government.
(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 CENVAT credit in
respect of capital goods, not carried forward in a return, furnished under the existing law 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 CENVAT credit under the existing law and is also admissible as input
tax credit under this Act.
E x p l a n a t i o n .— F o r th e p u rp o s e s o f th is s u b -s e c tio n , th e e x p re s s io n “u n a v a ile d
C EN V A T c re d it” m e a n s th e am o u n t th a t re m a in s a fte r su b tra c tin g th e a m o u n t o f C EN V A T
cre d it alre a d y a v a ile d in re sp e c t o f cap ital g o o d s b y th e ta x a b le p e rs o n u n d e r th e e x istin g la w
fro m th e a g g re g a te am o u n t o f C EN V A T c re d it to w h ic h th e sa id p e rso n w as e n title d in
re sp e c t o f th e sa id cap ita l g o o d s u n d e r th e e x istin g law.
(5) A re g iste re d p e rso n , w h o w as n o t lia b le to b e re g iste re d u n d e r th e e x istin g law , o r

w h o w as e n g a g e d in th e m a n u fa c tu re o f e x e m p te d g o o d s o r p ro v isio n o f e x e m p te d serv ices,
o r w h o w as p ro v id in g w o rk s c o n tra c t se rv ic e a n d w as a v a ilin g o f th e b e n e fit o f n o tific a tio n
N o. 2 6 /2 0 1 2 — S e rv ic e Tax, d a te d th e 2 0 th Ju n e , 2 0 1 2 o r a first stag e d e a le r o r a se c o n d stag e
d e a le r o r a re g iste re d im p o rte r o r a d e p o t o f a m an u fa c tu re r, shall b e e n title d to tak e, in his
e le c tro n ic c re d it ledger, c re d it o f elig ib le d u tie s in re sp e c t o f in p u ts h e ld in sto c k a n d in p u ts
c o n ta in e d in se m i-fin ish e d o r fin ish e d g o o d s h e ld in sto c k o n th e ap p o in te d d a y su b je c t to
th e fo llo w in g co n d itio n s, n a m e ly :—
(i) su c h in p u ts o r g o o d s are u se d o r in te n d e d to b e u se d fo r m a k in g ta x a b le
su p p lies u n d e r this A ct;
(ii) th e sa id re g iste re d p e rso n is e lig ib le fo r in p u t tax c re d it o n su c h in p u ts u n d e r

this A ct;
(iii) th e sa id re g iste re d p e rso n is in p o sse ssio n o f in v o ic e o r o th e r p re s c rib e d

d o c u m e n ts e v id e n c in g p a y m e n t o f d u ty u n d e r th e e x istin g la w in re s p e c t o f su c h
in p u ts ;
(iv) su c h in v o ices o r o th e r p re s c rib e d d o c u m e n ts w e re is su e d n o t e a rlie r th a n

tw e lv e m o n th s im m e d ia te ly p re c e d in g th e a p p o in te d d ay ; an d
( v ) th e su p p lie r o f serv ices is n o t e lig ib le fo r an y a b a te m e n t u n d e r th is A ct:
P ro v id e d th a t w h e re a re g iste re d p e rso n , o th e r th a n a m a n u fa c tu re r o r a su p p lie r o f

serv ices, is n o t in p o sse ssio n o f an in v o ic e o r an y o th e r d o c u m e n ts e v id e n c in g p a y m e n t o f
d u ty in re sp e c t o f in p u ts, th en , su c h re g iste re d p e rs o n shall, su b je c t to su c h c o n d itio n s,
lim ita tio n s a n d safe g u a rd s as m a y b e p re sc rib e d , in c lu d in g th a t th e said ta x a b le p e rso n shall
p ass o n th e b e n e fit o f su c h c re d it b y w a y o f re d u c e d p ric e s to th e re c ip ie n t, b e a llo w e d to
tak e c re d it at su c h ra te a n d in su c h m a n n e r as m a y b e p rescrib ed .
(4) A re g iste re d p e rso n , w h o w as e n g a g e d in th e m a n u fa c tu re o f ta x a b le as w ell as

ex em p ted goods u n d e r th e C en tral E x c ise A ct, 1944 o r p ro v isio n o f tax ab le as w ell as ex em p ted 1 of 1944.
serv ices u n d e r C h a p te r V o f th e F in a n c e A c t, 1994, b u t w h ic h are lia b le to ta x u n d e r this A ct, 32 of 1994.
shall b e e n title d to take, in h is e le c tro n ic c re d it led g er,—
(a ) th e am o u n t o f C EN V A T c re d it c a rrie d fo rw a rd in a re tu rn fu rn ish e d u n d e r th e
e x istin g la w b y h im in a c c o rd a n c e w ith th e p ro v isio n s o f su b -se c tio n (1); an d
(b) th e am o u n t o f C E N V A T c re d it o f e lig ib le d u ties in re sp e c t o f in p u ts h e ld in

sto ck a n d in p u ts c o n ta in e d in se m i-fin ish e d o r fin ish e d g o o d s h e ld in sto ck o n th e
a p p o in te d day, re la tin g to su c h e x e m p te d g o o d s o r serv ices, in a c c o rd a n c e w ith th e
p ro v isio n s o f su b -se c tio n (5).
(5) A re g iste re d p e rso n sh all b e e n title d to tak e, in h is e le c tro n ic c re d it ledger, c re d it o f

e lig ib le d u tie s a n d ta x e s in re s p e c t o f in p u ts o r in p u t se rv ic e s re c e iv e d o n o r a fte r th e
ap p o in te d d a y b u t th e d u ty o r ta x in re s p e c t o f w h ic h h as b e e n p a id b y th e su p p lie r u n d e r th e
ex istin g law , su b ject to th e co n d itio n th a t th e in v o ic e o r an y o th e r d u ty o r tax p a y in g d o cu m e n t
o f th e sa m e w as re c o rd e d in th e b o o k s o f a c c o u n t o f su c h p e rso n w ith in a p e rio d o f th irty
day s fro m th e a p p o in te d day:
P ro v id e d th a t th e p e rio d o f th irty d ay s m ay, o n su ffic ie n t c a u se b e in g sh o w n , b e

e x te n d e d b y th e C o m m issio n e r fo r a fu rth e r p e rio d n o t e x c e e d in g th irty days:
P ro v id e d fu rth e r th a t sa id re g iste re d p e rso n sh all fu rn ish a state m e n t, in su c h m a n n e r

as m a y b e p re sc rib e d , in re sp e c t o f c re d it th a t h a s b e e n tak e n u n d e r this su b -sectio n .
(6) A re g iste re d p e rso n , w h o w as e ith e r p a y in g ta x at a fix e d ra te o r p a y in g a fix e d

am o u n t in lie u o f th e ta x p a y a b le u n d e r th e e x istin g la w shall b e e n title d to tak e, in h is
e le c tro n ic c re d it ledger, c re d it o f elig ib le d u tie s in re sp e c t o f in p u ts h e ld in sto c k a n d in p u ts
c o n ta in e d in se m i-fin ish e d o r fin ish e d g o o d s h e ld in sto c k o n th e ap p o in te d d a y su b je c t to
th e fo llo w in g co n d itio n s, n a m e ly :—
(i) su c h in p u ts o r g o o d s are u se d o r in te n d e d to b e u se d fo r m a k in g ta x a b le
su p p lies u n d e r this A ct;
(ii) th e sa id re g iste re d p e rs o n is n o t p a y in g ta x u n d e r se c tio n 10;
( iii ) th e sa id re g iste re d p e rs o n is e lig ib le fo r in p u t ta x c re d it o n su c h in p u ts

u n d e r th is A ct;
(iv ) th e sa id re g iste re d p e rs o n is in p o sse ssio n o f in v o ic e o r o th e r p re s c rib e d

d o c u m e n ts e v id e n c in g p a y m e n t o f d u ty u n d e r th e e x istin g la w in re s p e c t o f in p u ts;
and
( v ) su c h in v o ices o r o th e r p re s c rib e d d o c u m e n ts w e re is su e d n o t e a rlie r th a n

tw e lv e m o n th s im m e d ia te ly p re c e d in g th e ap p o in te d day.
(7) N o tw ith sta n d in g a n y th in g to th e c o n tra ry c o n ta in e d in th is A ct, th e in p u t tax c red it

on a c c o u n t o f an y serv ices re c e iv e d p rio r to th e a p p o in te d day b y an In p u t S erv ic e D istrib u to r
shall b e e lig ib le fo r d istrib u tio n as c re d it u n d e r th is A c t e v e n if th e in v o ic e s re la tin g to su ch
serv ices are re c e iv e d o n o r a fte r th e a p p o in te d day.
(8) W h e re a re g iste re d p e rs o n h a v in g c e n tra lise d re g istra tio n u n d e r th e e x istin g la w

h as o b ta in e d a re g istra tio n u n d e r th is A c t, su c h p e rs o n sh all b e a llo w e d to ta k e , in his
e le c tro n ic c re d it ledger, c re d it o f th e am o u n t o f C E N V A T c re d it c a rrie d fo rw a rd in a retu rn ,
fu rn ish e d u n d e r th e e x is tin g la w b y h im , in re s p e c t o f th e p e rio d e n d in g w ith th e d a y
im m e d ia te ly p re c e d in g th e a p p o in te d d a y in su c h m a n n e r as m a y b e p rescrib ed :
P ro v id e d th a t if th e re g iste re d p e rso n fu rn ish e s h is re tu rn fo r th e p e rio d e n d in g w ith

th e d a y im m e d ia te ly p re c e d in g th e a p p o in te d d a y w ith in th re e m o n th s o f th e a p p o in te d day,
su c h c re d it sh all b e a llo w e d su b je c t to th e co n d itio n th a t th e sa id re tu rn is e ith e r an o rig in al
re tu rn o r a re v ise d re tu rn w h e re th e c re d it h as b e e n re d u c e d fro m th a t c la im e d earlier:
P ro v id e d fu rth e r th a t th e re g iste re d p e rso n shall n o t b e a llo w e d to ta k e c re d it u n le ss

th e sa id am o u n t is a d m issib le as in p u t ta x c re d it u n d e r th is A ct:
P ro v id e d also th a t su c h c re d it m a y b e tra n sfe rre d to an y o f th e re g iste re d p e rso n s

h a v in g th e sam e P e rm a n e n t A c c o u n t N u m b e r fo r w h ic h th e c e n tra lise d re g istra tio n w as
o b ta in e d u n d e r th e e x istin g law.
(9) W h e re any C EN V A T c red it av ailed fo r th e in p u t services p ro v id e d u n d e r th e ex istin g

law h as b e e n re v e rse d d u e to n o n -p a y m e n t o f th e c o n sid e ra tio n w ith in a p e rio d o f th ree
m o n th s, su c h c re d it c a n b e re c la im e d su b je c t to th e co n d itio n th a t th e re g iste re d p e rs o n has
m a d e th e p a y m e n t o f th e c o n sid e ra tio n fo r th a t su p p ly o f serv ices w ith in a p e rio d o f th ree
m o n th s fro m th e a p p o in te d day.
(10) T h e am o u n t o f c re d it u n d e r su b -se c tio n s (5), (4) a n d (6) sh all b e c a lc u la te d in

su c h m a n n e r as m a y b e p rescrib ed .
E x p la n a tio n 1 .— F o r th e p u rp o se s o f su b -se c tio n s (5), (4) a n d (6), th e e x p re ssio n

“e lig ib le d u tie s” m e a n s—
(i) th e a d d itio n a l d u ty o f e x c ise le v ia b le u n d e r se c tio n 3 o f th e A d d itio n a l D u ties

58 of 1957. o f E x c ise (G o o d s o f S p ecial Im p o rta n c e ) A ct, 1957;
(ii) th e a d d itio n al d u ty le v ia b le u n d e r su b -se c tio n (1) o f se c tio n 3 o f th e C u sto m s

51 of 1975. T ariff A ct, 1975;
(iii) th e ad d itio n al d u ty le v ia b le u n d e r su b -sectio n (5) o f se c tio n 3 o f th e C u sto m s

51 of 1975. T ariff A ct, 1975;
(iv) th e a d d itio n a l d u ty o f e x c is e le v ia b le u n d e r se c tio n 3 o f th e A d d itio n a l

D u ties o f E x c ise (T extile an d T extile A rtic le s) A ct, 1978; 40 of 1978.
( v ) th e d u ty o f ex c ise sp e c ifie d in th e F irst S c h e d u le to th e C e n tra l E x c ise T ariff

5 of 1986.
A ct, 1985;
( v i ) th e d u ty o f e x c ise sp e c ifie d in th e S e c o n d S c h e d u le to th e C e n tra l E x c ise

5 of 1986.
T ariff A c t, 1985; an d
(vii) th e N a tio n a l C a la m ity C o n tin g e n t D u ty le v ia b le u n d e r se c tio n 136 o f th e

F in a n c e A ct, 2001, 14 of 2001.
in re sp e c t o f in p u ts h e ld in sto c k a n d in p u ts c o n ta in e d in se m i-fin ish e d o r fin ish e d g o o d s

h e ld in sto c k o n th e a p p o in te d day.
E x p la n a tio n 2 .— F o r th e p u rp o se s o f su b -se c tio n (5), th e e x p re ssio n “ e lig ib le duties

a n d ta x e s” m e a n s—
(i) th e a d d itio n a l d u ty o f e x c ise le v ia b le u n d e r se c tio n 3 o f th e A d d itio n a l D u ties

o f E x c ise (G o o d s o f S p ecial Im p o rta n c e ) A ct, 1957; 58 of 1957.
(ii) th e a d d itio n al d u ty le v ia b le u n d e r su b -se c tio n (1) o f se c tio n 3 o f th e C u sto m s

T ariff A ct, 1975; 51 of 1975.
(iii) th e ad d itio n al d u ty le v ia b le u n d e r su b -sectio n (5) o f se c tio n 3 o f th e C u sto m s

T ariff A ct, 1975; 51 of 1975.
( iv ) th e a d d itio n a l d u ty o f e x c is e le v ia b le u n d e r se c tio n 3 o f th e A d d itio n a l

D u ties o f E x c ise (T extile an d T extile A rtic le s) A ct, 1978; 40 of 1978.
( v ) th e d u ty o f ex c ise sp e c ifie d in th e F irst S c h e d u le to th e C e n tra l E x c ise T ariff

A ct, 1985; 5 of 1986.
( v i ) th e d u ty o f e x c ise sp e c ifie d in th e S e c o n d S c h e d u le to th e C e n tra l E x c ise

T ariff A ct, 1985; 5 of 1986.
(vii) th e N a tio n a l C a la m ity C o n tin g e n t D u ty le v ia b le u n d e r se c tio n 136 o f th e

F in a n c e A c t, 2 0 0 1 ; an d 14 of 2001.
(viii) th e serv ic e tax le v ia b le u n d e r se c tio n 66B o f th e F in a n c e A ct, 1994, 32 of 1994.
in re s p e c t o f in p u ts a n d in p u t serv ic e s re c e iv e d o n o r a fte r th e a p p o in te d day.
Transitional 141. (1) W h e re an y in p u ts re c e iv e d at a p la c e o f b u sin e ss h a d b e e n re m o v e d as su ch

provisions o r re m o v e d a fte r b e in g p a rtia lly p ro c e s se d to a jo b w o rk e r fo r fu rth e r p ro c e ssin g , testin g ,
relating to job rep air, re c o n d itio n in g o r an y o th e r p u rp o s e in a c c o rd a n c e w ith th e p ro v isio n s o f e x istin g la w
work.
p rio r to th e a p p o in te d d ay a n d su c h in p u ts are re tu rn e d to th e sa id p la c e o n o r a fte r th e
ap p o in te d day, n o ta x sh all b e p a y a b le if su c h in p u ts, a fte r c o m p le tio n o f th e jo b w o rk o r
o th erw ise, are re tu rn e d to th e sa id p la c e w ith in six m o n th s fro m th e ap p o in te d day:
P ro v id e d th a t th e p e rio d o f six m o n th s m ay, o n su ffic ie n t c a u se b e in g sh o w n , b e

e x te n d e d b y th e C o m m issio n e r fo r a fu rth e r p e rio d n o t e x c e e d in g tw o m onths:
P ro v id e d fu rth e r th a t if su c h in p u ts are n o t re tu rn e d w ith in th e p e rio d sp e c ifie d in this

su b -se c tio n , th e in p u t ta x c re d it sh a ll b e lia b le to b e re c o v e re d in a c c o rd a n c e w ith th e
p ro v isio n s o f c la u se (a ) o f su b -se c tio n (8) o f se c tio n 142.
(2) W h e re a n y se m i-fin ish e d g o o d s h a d b e e n re m o v e d fro m th e p la c e o f b u sin e ss to

any o th e r p re m ise s fo r c a rry in g o u t c e rta in m a n u fa c tu rin g p ro c e s se s in a c c o rd a n c e w ith
th e p ro v isio n s o f e x is tin g la w p rio r to th e a p p o in te d d a y a n d su c h g o o d s (h e re a fte r in th is
se c tio n re f e rre d to as “th e sa id g o o d s ” ) a re re tu rn e d to th e sa id p la c e o n o r a fte r th e
a p p o in te d day, n o ta x sh a ll b e p a y a b le , if th e sa id g o o d s, a fte r u n d e rg o in g m a n u fa c tu rin g
p ro c e s se s o r o th e rw ise , are re tu rn e d to th e sa id p la c e w ith in six m o n th s fro m th e a p p o in te d
day:

P ro v id e d fu rth e r th a t if th e sa id g o o d s are n o t re tu rn e d w ith in th e p e rio d sp e c ifie d in

this su b -sectio n , th e in p u t ta x c re d it shall b e lia b le to b e re c o v e re d in a c c o rd a n c e w ith th e
p ro v isio n s o f c la u se (a ) o f su b -se c tio n (8) o f se c tio n 142:
P ro v id e d also th a t th e m a n u fa c tu re r m ay, in a c c o rd a n c e w ith th e p ro v isio n s o f th e

e x istin g law , tra n sfe r th e sa id g o o d s to th e p re m ise s o f an y re g iste re d p e rs o n fo r th e p u rp o se
o f su p p ly in g th e re fro m o n p a y m e n t o f ta x in In d ia o r w ith o u t p a y m e n t o f ta x fo r ex p o rts
w ith in th e p e rio d sp e c ifie d in th is su b -sectio n .
(5) W h e re an y e x c isa b le g o o d s m a n u fa c tu re d at a p la c e o f b u sin e ss h a d b e e n re m o v e d

w ith o u t p a y m e n t o f d u ty fo r c a rry in g o u t te sts o r a n y o th e r p ro c e s s n o t a m o u n tin g to
m a n u fa c tu re , to a n y o th e r p re m ise s, w h e th e r re g iste re d o r n o t, in a c c o rd a n c e w ith th e
p ro v isio n s o f e x istin g la w p rio r to th e ap p o in te d d a y a n d su c h g o o d s, a re re tu rn e d to th e said
p la c e o n o r a fte r th e a p p o in te d day, n o tax shall b e p a y a b le if th e said g o o d s, a fte r u n d e rg o in g
tests o r an y o th e r p ro c e ss, are re tu rn e d to th e sa id p la c e w ith in six m o n th s fro m th e a p p o in te d
day:

P ro v id e d fu rth e r th a t if th e sa id g o o d s are n o t re tu rn e d w ith in th e p e rio d sp e c ifie d in

this su b -sectio n , th e in p u t ta x c re d it shall b e lia b le to b e re c o v e re d in a c c o rd a n c e w ith th e
p ro v isio n s o f c la u se (a ) o f su b -se c tio n (8) o f se c tio n 142:
P ro v id e d also th a t th e m a n u fa c tu re r m ay, in a c c o rd a n c e w ith th e p ro v isio n s o f th e

e x istin g law , tra n sfe r th e sa id g o o d s fro m th e sa id o th e r p re m ise s o n p a y m e n t o f ta x in In d ia
o r w ith o u t p a y m e n t o f ta x fo r ex p o rts w ith in th e p e rio d sp e c ifie d in th is su b -sectio n .
(4) T h e ta x u n d e r su b -se c tio n s (1), (2) a n d (5) sh a ll n o t b e p a y a b le , o n ly if th e

m a n u fa c tu re r a n d th e jo b w o rk e r d e c la re th e d etails o f th e in p u ts o r g o o d s h e ld in sto c k b y
th e jo b w o rk e r o n b e h a lf o f th e m a n u fa c tu re r o n th e a p p o in te d d a y in su c h fo rm an d m a n n e r
a n d w ith in su c h tim e as m a y b e p rescrib ed .
142. (1) W h e re an y g o o d s o n w h ic h duty, if any, h a d b e e n p a id u n d e r th e e x istin g la w Misc d laneous

at th e tim e o f re m o v a l th ereo f, n o t b e in g ea rlie r th a n six m o n th s p rio r to th e a p p o in te d day, are transitional
re tu rn e d to an y p la c e o f b u sin e ss o n o r a fte r th e ap p o in te d day, th e re g iste re d p e rso n sh all provisions.
b e e lig ib le fo r re fu n d o f th e d u ty p a id u n d e r th e e x istin g la w w h e re su c h g o o d s are re tu rn e d
b y a p e rso n , o th e r th a n a re g iste re d p e rso n , to th e sa id p la c e o f b u sin e ss w ith in a p e rio d o f
six m o n th s fro m th e a p p o in te d d a y a n d su c h g o o d s a re id e n tifia b le to th e sa tisfa c tio n o f th e
p ro p e r officer:
P ro v id e d th a t if th e sa id g o o d s are re tu rn e d b y a re g iste re d p e rso n , th e re tu rn o f su ch

g oo d s sh all b e d e e m e d to b e a supply.
( 2 ) ( a ) w h ere, in p u rs u a n c e o f a c o n tra c t e n te re d in to p rio r to th e a p p o in te d day, th e

p ric e o f an y g o o d s o r serv ices o r b o th is re v ise d u p w a rd s o n o r a fte r th e a p p o in te d day, th e
re g iste re d p e rso n w h o h a d re m o v e d o r p ro v id e d su c h g o o d s o r serv ices o r b o th shall issu e
to th e re c ip ie n t a su p p le m e n ta ry in v o ic e o r d e b it n o te , c o n ta in in g su c h p a rtic u la rs as m a y b e
p re sc rib e d , w ith in th irty d ay s o f su c h p ric e re v isio n a n d fo r th e p u rp o se s o f th is A c t su ch
su p p le m e n ta ry in v o ic e o r d e b it n o te sh all b e d e e m e d to h a v e b e e n is su e d in re sp e c t o f an
o u tw a rd su p p ly m a d e u n d e r th is A c t;
(b) w h ere, in p u rs u a n c e o f a c o n tra c t e n te re d in to p rio r to th e a p p o in te d day, th e p ric e

o f an y g o o d s o r serv ices o r b o th is re v ise d d o w n w a rd s o n o r a fte r th e a p p o in te d day, th e
re g iste re d p e rs o n w h o h a d re m o v e d o r p ro v id e d su c h g o o d s o r serv ices o r b o th m a y issu e
to th e re c ip ie n t a c re d it n o te , c o n ta in in g su c h p a rtic u la rs as m a y b e p re sc rib e d , w ith in th irty
day s o f su c h p ric e re v isio n a n d fo r th e p u rp o se s o f th is A c t su c h c re d it n o te sh all b e d e e m e d
to h a v e b e e n is su e d in re sp e c t o f an o u tw a rd su p p ly m a d e u n d e r this A ct:
P ro v id e d th a t th e re g iste re d p e rs o n sh all b e a llo w e d to re d u c e h is ta x lia b ility o n

a cc o u n t o f issu e o f th e c re d it n o te o n ly if th e re c ip ie n t o f th e c re d it n o te h as re d u c e d h is
in p u t tax c re d it c o rre sp o n d in g to su c h re d u c tio n o f ta x liability.
(5) E v e ry c la im fo r re fu n d file d b y an y p e rs o n b efo re, o n o r a fte r th e ap p o in te d day, fo r

re fu n d o f an y a m o u n t o f C EN V A T cred it, duty, tax , in te re st o r an y o th e r am o u n t p a id u n d e r
th e e x istin g law , sh all b e d isp o se d o f in a c c o rd a n c e w ith th e p ro v isio n s o f e x istin g la w an d
an y a m o u n t e v e n tu a lly a c c ru in g to h im sh all b e p a id in c ash , n o tw ith sta n d in g a n y th in g to
th e c o n tra ry c o n ta in e d u n d e r th e p ro v isio n s o f e x istin g la w o th e r th a n th e p ro v isio n s o f
su b -se c tio n (2) o f se c tio n 11B o f th e C e n tra l E x c ise A c t, 1944: 1 of 1944.
P ro v id e d th a t w h ere any c la im fo r re fu n d o f CEN V A T c red it is fu lly o r p a rtially rejected ,

th e a m o u n t so re je c te d sh all lap se:
P ro v id e d fu rth e r th a t n o re fu n d sh all b e a llo w e d o f an y am o u n t o f C E N V A T c re d it

w h e re th e b a la n c e o f th e sa id a m o u n t as o n th e a p p o in te d d a y h a s b e e n c a rrie d fo rw a rd
u n d e r th is A ct.
(4) E v e ry c la im fo r re fu n d file d a fte r th e a p p o in te d d a y fo r re fu n d o f an y d u ty o r tax

p a id u n d e r e x istin g la w in re s p e c t o f th e g o o d s o r serv ices e x p o rte d b e fo re o r a fte r th e
ap p o in te d day, shall b e d isp o se d o f in a c c o rd a n c e w ith th e p ro v isio n s o f th e e x istin g law :
P ro v id e d th a t w h ere any c la im fo r re fu n d o f CEN V A T c red it is fu lly o r p a rtially rejected ,

th e a m o u n t so re je c te d sh all lap se:
P ro v id e d fu rth e r th a t n o re fu n d sh all b e a llo w e d o f an y am o u n t o f C E N V A T c re d it

w h e re th e b a la n c e o f th e sa id a m o u n t as o n th e a p p o in te d d a y h a s b e e n c a rrie d fo rw a rd
u n d e r th is A ct.
(5) E v e ry c la im file d b y a p e rs o n a fte r th e a p p o in te d d a y fo r re fu n d o f tax p a id u n d e r

th e e x istin g la w in re s p e c t o f serv ices n o t p ro v id e d shall b e d isp o se d o f in a c c o rd a n c e w ith
th e p ro v isio n s o f e x istin g la w a n d an y am o u n t e v e n tu a lly accru in g to h im shall b e p a id in
cash , n o tw ith sta n d in g a n y th in g to th e c o n tra ry c o n ta in e d u n d e r th e p ro v isio n s o f ex istin g
la w o th e r th a n th e p ro v isio n s o f su b -se c tio n (2) o f se c tio n 11B o f th e C e n tra l E x c ise
A ct, 1944. 1 of 1944.
(6 ) (a ) e v e ry p ro c e e d in g o f app eal, re v ie w o r re fe re n c e re la tin g to a c la im fo r C EN V A T

cre d it in itia te d w h e th e r b e fo re , o n o r a fte r th e a p p o in te d d a y u n d e r th e e x istin g la w sh all b e
d isp o se d o f in a c c o rd a n c e w ith th e p ro v isio n s o f e x istin g law , a n d an y am o u n t o f c red it
fo u n d to b e a d m issib le to th e c la im a n t sh all b e re fu n d e d to h im in c ash , n o tw ith sta n d in g
a n y th in g to th e c o n tra ry c o n ta in e d u n d e r th e p ro v isio n s o f e x is tin g la w o th e r th a n th e
p ro v isio n s o f su b -se c tio n (2) o f se c tio n 11B o f th e C e n tra l E x c ise A c t, 1944 a n d th e am o u n t 1 of 1944.
reje c te d , if any, sh all n o t b e a d m issib le as in p u t ta x c re d it u n d e r this A ct:
P ro v id e d th a t n o re fu n d sh all b e a llo w e d o f an y am o u n t o f C E N V A T cre d it w h e re th e

b a la n c e o f th e sa id a m o u n t as o n th e a p p o in te d d a y h a s b e e n c a rr ie d fo r w a rd u n d e r
this A c t;
(b) e v e ry p ro c e e d in g o f ap p eal, re v ie w o r re fe re n c e re la tin g to re c o v e ry o f C EN V A T

cre d it in itia te d w h e th e r b e fo re , o n o r a fte r th e a p p o in te d d a y u n d e r th e e x istin g la w sh all b e
d isp o se d o f in a c c o rd a n c e w ith th e p ro v isio n s o f e x istin g la w a n d if an y am o u n t o f c red it
b ec o m e s re c o v e ra b le as a re su lt o f su c h app eal, re v ie w o r re fe re n c e , th e sa m e shall, u n less
re c o v e re d u n d e r th e e x istin g law , b e re c o v e re d as an a rre a r o f ta x u n d e r th is A c t a n d th e
am o u n t so re c o v e re d shall n o t b e a d m issib le as in p u t ta x c re d it u n d e r this A ct.
(7) (a ) e v e ry p ro c e e d in g o f ap p eal, re v ie w o r re fe re n c e re la tin g to an y o u tp u t d u ty o r

tax lia b ility in itia te d w h e th e r b e fo re , o n o r a fte r th e a p p o in te d d a y u n d e r th e e x istin g law ,
sh a ll b e d is p o se d o f in a c c o rd a n c e w ith th e p ro v isio n s o f th e e x is tin g la w , a n d if an y
am o u n t b e c o m e s re c o v e ra b le as a re s u lt o f su c h app eal, re v ie w o r re fe re n c e , th e sa m e shall,

u n le ss re c o v e re d u n d e r th e e x istin g law , b e re c o v e re d as an arre a r o f d u ty o r tax u n d e r this
A c t a n d th e a m o u n t so re c o v e re d sh all n o t b e a d m issib le as in p u t ta x c re d it u n d e r this
A ct.
(b) e v e ry p ro c e e d in g o f ap p eal, re v ie w o r re fe re n c e re la tin g to an y o u tp u t d u ty o r tax

liab ility in itia te d w h e th e r b efo re, o n o r after th e ap p o in te d d a y u n d e r th e ex istin g law , shall be
d isp o se d o f in a c c o rd a n c e w ith th e p ro v isio n s o f th e e x istin g law , a n d an y am o u n t fo u n d to
b e a d m issib le to th e c la im a n t sh all b e re fu n d e d to h im in cash , n o tw ith sta n d in g a n y th in g to
th e c o n tra ry c o n ta in e d u n d e r th e p ro v isio n s o f e x istin g la w o th e r th a n th e p ro v isio n s o f
1 of 1944. su b -sectio n (2) o f se c tio n 1 1B o f th e C e n tral E x c ise A ct, 1944 a n d th e am o u n t rejected , if any,
shall n o t b e a d m issib le as in p u t ta x c re d it u n d e r th is A ct.
(8) (a ) w h e re in p u rsu a n c e o f an a sse ssm e n t o r a d ju d ic a tio n p ro c e e d in g s in stitu ted ,

w h e th e r b e fo re , o n o r a fte r th e ap p o in te d day, u n d e r th e e x istin g law , an y am o u n t o f tax,
interest, fin e o r p e n a lty b eco m e s rec o v e ra b le fro m th e p erso n , th e sam e shall, u n less re c o v e re d
u n d e r th e e x istin g law , b e re c o v e re d as an arre a r o f ta x u n d e r th is A c t a n d th e am o u n t so
re c o v e re d sh all n o t b e a d m issib le as in p u t tax c re d it u n d e r this A c t;
(b) w h e re in p u rsu a n c e o f an assessm en t o r ad ju d icatio n p ro ceed in g s in stitu ted , w h e th e r

b efo re, o n o r a fte r th e a p p o in te d day, u n d e r th e e x istin g law , an y a m o u n t o f tax , in te re st, fin e
o r p e n a lty b e c o m e s re fu n d a b le to th e ta x a b le p e rso n , th e sa m e shall b e re fu n d e d to h im in
ca sh u n d e r th e sa id law , n o tw ith sta n d in g a n y th in g to th e c o n tra ry c o n ta in e d in th e sa id la w
1 of 1944. o th e r th a n th e p ro v isio n s o f su b -se c tio n (2) o f se c tio n 1 1B o f th e C e n tra l E x c ise A ct, 1944
a n d th e a m o u n t re je c te d , if any, sh all n o t b e a d m issib le as in p u t ta x c re d it u n d e r this A ct.
(9) (a ) w h e re an y retu rn , fu rn ish e d u n d e r th e ex istin g law , is re v ise d a fte r th e a p p o in ted

d ay a n d if, p u rsu a n t to su c h re v isio n , an y am o u n t is fo u n d to b e re c o v e ra b le o r a n y am o u n t
o f C EN V A T c re d it is fo u n d to b e in a d m issib le , th e sa m e shall, u n le ss re c o v e re d u n d e r th e
ex istin g law , b e re c o v e re d as an arre a r o f ta x u n d e r this A c t a n d th e am o u n t so re c o v e re d shall
n o t b e a d m issib le as in p u t tax c re d it u n d e r this A c t;
( b ) w h e re an y re tu rn , fu rn ish e d u n d e r th e e x istin g law , is re v ise d a fte r th e a p p o in te d

d ay b u t w ith in th e tim e lim it sp ec ifie d fo r su c h re v isio n u n d e r th e ex istin g la w a n d if, p u rsu a n t
to su c h re v isio n , an y am o u n t is fo u n d to b e re fu n d a b le o r C E N V A T c re d it is fo u n d to b e
ad m issib le to any ta x a b le p e rso n , th e sa m e sh all b e re fu n d e d to h im in c a sh u n d e r th e ex istin g
law , n o tw ith sta n d in g a n y th in g to th e c o n tra ry c o n ta in e d in th e sa id la w o th e r th a n th e
1 of 1944. p ro v isio n s o f su b -se c tio n (2) o f se c tio n 11B o f th e C e n tra l E x c ise A c t, 1944 a n d th e a m o u n t
reje c te d , if any, sh all n o t b e a d m issib le as in p u t ta x c re d it u n d e r this A ct.
(10) S a v e as o th e rw ise p ro v id e d in th is C h ap ter, th e g o o d s o r serv ices o r b o th su p p lie d

on o r a fte r th e a p p o in te d d a y in p u rs u a n c e o f a c o n tra c t e n te re d in to p rio r to th e a p p o in te d
d ay sh all b e lia b le to ta x u n d e r th e p ro v isio n s o f th is A ct.
(11) (a ) n o tw ith sta n d in g a n y th in g c o n ta in e d in se c tio n 12, n o tax sh all b e p a y a b le o n

g oo d s u n d e r this A c t to th e e x te n t th e ta x w as le v ia b le o n th e sa id g o o d s u n d e r th e V alue
A d d e d T ax A c t o f th e State;
( b ) n o tw ith sta n d in g a n y th in g c o n ta in e d in se c tio n 13, n o ta x sh all b e p a y a b le o n

se rv ic e s u n d e r th is A c t to th e e x te n t th e ta x w a s le v ia b le o n th e sa id s e rv ic e s u n d e r
32 of 1994. C h a p te r V o f th e F in a n c e A c t, 1994;
(c) w h e re ta x w as p a id o n an y su p p ly b o th u n d e r th e V alue A d d e d Tax A c t a n d u n d e r

32 of 1994. C h a p te r V o f th e F in a n c e A ct, 1994, tax shall b e le v ia b le u n d e r this A c t a n d th e ta x a b le p e rso n
shall b e e n title d to ta k e c re d it o f v a lu e a d d e d ta x o r se rv ic e ta x p a id u n d e r th e e x istin g la w to
th e e x te n t o f su p p lies m a d e a fte r th e a p p o in te d d a y a n d su c h c re d it sh all b e c a lc u la te d in
su c h m a n n e r as m a y b e p rescrib ed .
(12) Where any goods sent on approval basis, not earlier than six months before the
appointed day, are rejected or not approved by the buyer and returned to the 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:
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 by the person returning the goods if such
goods are liable to tax under this Act, and are returned after a 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 a
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 any law of a State or Union territory relating to Value Added
Tax 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.
Explanation.—For the purposes of this Chapter, the expressions “capital goods”,
“Central Value Added Tax (CENVAT) credit”, “first stage dealer”, “second stage dealer”, or
“manufacture” shall have the same meaning as respectively assigned to them in the
1 of 1944.
Central Excise Act, 1944 or the rules made thereunder.
ch a pter XXI
M iscellaneous
Job work 143. (1) A registered person (hereafter in this section referred to as the “principal”)
procedure. may under intimation and subject to 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, or tools, within one year and three years,
respectively, of their 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, or tools, within one year and three
years, respectively, of their being sent out from the place of business of a job 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
w ith th e p ro v isio n s o f c la u se (b) o f su b -se c tio n (1) w ith in a p e rio d o f o n e y e a r o f th e ir b e in g

sen t o u t, it sh all b e d e e m e d th a t su c h in p u ts h a d b e e n su p p lie d b y th e p rin c ip a l to th e
jo b w o rk e r o n th e d a y w h e n th e sa id in p u ts w e re sen t out.
(4) W h e re th e c a p ita l g o o d s, o th e r th a n m o u ld s a n d d ie s, jig s a n d fix tu re s , o r to o ls,

se n t fo r jo b w o rk a re n o t re c e iv e d b a c k b y th e p rin c ip a l in a c c o rd a n c e w ith th e p ro v isio n s
o f c la u s e (a ) o f su b -se c tio n (1 ) o r a re n o t su p p lie d fro m th e p la c e o f b u sin e ss o f th e jo b
w o rk e r in a c c o rd a n c e w ith th e p ro v isio n s o f c la u s e (b ) o f su b -se c tio n (1) w ith in a p e rio d o f
th re e y e a rs o f th e ir b e in g se n t o u t, it sh a ll b e d e e m e d th a t su c h c a p ita l g o o d s h a d b e e n
su p p lie d b y th e p rin c ip a l to th e jo b w o rk e r o n th e d a y w h e n th e sa id c a p ita l g o o d s w e re
se n t out.
(5) N o tw ith sta n d in g a n y th in g c o n ta in e d in su b -se c tio n s (1) a n d (2), an y w a ste an d

scrap g e n e ra te d d u rin g th e jo b w o rk m a y b e su p p lie d b y th e jo b w o rk e r d ire c tly fro m his
p la c e o f b u sin e ss o n p a y m e n t o f tax , if su c h jo b w o rk e r is re g iste re d , o r b y th e p rin c ip a l, if th e
jo b w o rk e r is n o t reg istered .
E x p l a n a tio n .— F o r th e p u rp o se s o f jo b w o rk , in p u t in clu d es in te rm e d ia te go o d s arisin g

fro m an y tre a tm e n t o r p ro c e ss c a rrie d o u t o n th e in p u ts b y th e p rin c ip a l o r th e jo b w orker.
144. W h e re an y d o c u m e n t— Presumption
as to
( i ) is p ro d u c e d b y an y p e rs o n u n d e r this A c t o r an y o th e r la w fo r th e tim e b e in g documents in
certain cases.
in fo rce; o r
(ii) h as b e e n se iz e d fro m th e c u sto d y o r c o n tro l o f an y p e rso n u n d e r th is A c t o r

an y o th e r la w fo r th e tim e b e in g in fo rce; o r
( iii ) h a s b e e n re c e iv e d fr o m a n y p la c e o u ts id e In d ia in th e c o u rs e o f an y
p ro c e e d in g s u n d e r th is A c t o r an y o th e r la w fo r th e tim e b e in g in fo rce,
a n d su c h d o c u m e n t is te n d e re d b y th e p ro se c u tio n in e v id e n c e a g a in st h im o r an y o th e r
p e rso n w h o is trie d jo in tly w ith h im , th e c o u rt sh all—
(a ) u n le ss th e c o n tra ry is p ro v e d b y su c h p e rso n , p re su m e —
( i ) th e tru th o f th e c o n te n ts o f su c h d o cu m en t;
(ii) th a t th e sig n atu re an d e v ery o th e r p a rt o f su ch d o c u m e n t w h ic h p u rp o rts

to b e in th e h a n d w ritin g o f a n y p a rtic u la r p e rs o n o r w h ic h th e c o u rt m a y
re a so n a b ly a ssu m e to h a v e b e e n sig n e d by, o r to b e in th e h a n d w ritin g of, any
p a rtic u la r p e rso n , is in th a t p e rs o n ’s h a n d w ritin g , a n d in th e c a se o f a d o c u m e n t
e x e c u te d o r attested , th a t it w as e x e c u te d o r a tte ste d b y th e p e rs o n b y w h o m it
p u rp o rts to h a v e b e e n so e x e c u te d o r attested ;
( b ) ad m it th e d o c u m e n t in e v id e n c e n o tw ith sta n d in g th a t it is n o t d u ly stam p ed ,

if su c h d o c u m e n t is o th e rw ise a d m issib le in ev id en c e.
145. (1) N o tw ith sta n d in g a n y th in g c o n ta in e d in an y o th e r la w fo r th e tim e b e in g in Admissibility

force,— of micro
films,
(a) a m icro film o f a do cu m en t o r the reproduction o f the im age o r im ages em b o d ied facsimile
copies of
in su c h m ic ro film (w h e th e r e n la rg e d o r no t); o r
documents and
( b ) a fa c sim ile c o p y o f a d o c u m e n t; o r computer
printouts as
(c) a sta te m e n t c o n ta in e d in a d o c u m e n t a n d in c lu d e d in a p rin te d m a te ria l documents and
as evidence.
p ro d u c e d b y a co m p u ter, su b je c t to su c h c o n d itio n s as m a y b e p re sc rib e d ; o r
(d) an y in fo rm a tio n sto re d e le c tro n ic a lly in an y d e v ic e o r m ed ia, in c lu d in g any

h a rd co p ies m a d e o f su c h in fo rm a tio n ,
s h a l l b e d e e m e d to b e a d o c u m e n t f o r t h e p u r p o s e s o f th i s A c t a n d th e r u l e s
m a d e th e re u n d e r a n d sh all b e a d m issib le in an y p ro c e e d in g s th ere u n d e r, w ith o u t fu rth e r
p ro o f o r p ro d u c tio n o f th e o rig in a l, as e v id e n c e o f an y c o n ten ts o f th e o rig in a l o r o f an y fact

state d th e re in o f w h ic h d ire c t e v id e n c e w o u ld b e ad m issib le.
(2) In an y p ro c e e d in g s u n d e r th is A c t o r th e ru le s m a d e th ere u n d e r, w h e re it is d e sire d

to g iv e a sta te m e n t in e v id e n c e b y v irtu e o f th is sectio n , a c e rtific a te ,—
(a ) id e n tify in g th e d o c u m e n t c o n ta in in g th e state m e n t a n d d e sc rib in g th e m a n n e r

in w h ic h it w as p ro d u c e d ;
(b) g iv in g su c h p a rtic u la rs o f an y d e v ic e in v o lv e d in th e p ro d u c tio n o f th a t

d o c u m e n t as m a y b e a p p ro p ria te fo r th e p u rp o s e o f sh o w in g th a t th e d o c u m e n t w as
p ro d u c e d b y a co m p u ter,
sh a ll b e e v id e n c e o f a n y m a tte r s ta te d in th e c e rtif ic a te a n d fo r th e p u rp o s e s o f th is
su b -se c tio n it sh all b e su ffic ie n t fo r a m a tte r to b e sta te d to th e b e st o f th e k n o w le d g e an d
b e lie f o f th e p e rso n sta tin g it.
Common 146. T h e G o v e rn m e n t m ay, o n th e reco m m en d atio n s o f th e C oun cil, n o tify th e C o m m o n

Portal. G oods and S ervices Tax E lectro n ic P o rtal fo r facilitating registration, p ay m en t o f tax, furnishing
o f retu rn s, c o m p u ta tio n a n d se ttle m e n t o f in te g ra te d tax , e le c tro n ic w a y b ill a n d fo r c a rry in g
o u t su c h o th e r fu n c tio n s a n d fo r su c h p u rp o se s as m a y b e p re sc rib e d .
Deemed 147. T h e G o v e rn m e n t m ay, o n th e re c o m m e n d a tio n s o f th e C o u n c il, n o tify c e rta in

exports. su p p lies o f g o o d s as d e e m e d ex p o rts, w h e re g o o d s su p p lie d d o n o t le a v e In d ia, a n d p a y m e n t
fo r su c h su p p lies is re c e iv e d e ith e r in In d ia n ru p e e s o r in c o n v e rtib le fo re ig n ex c h a n g e , if
su c h g o o d s are m a n u fa c tu re d in India.
Special 148. T h e G o v e rn m e n t m ay, o n th e re c o m m e n d a tio n s o f th e C o u n c il, a n d su b je c t to

procedure for su c h c o n d itio n s a n d safeg u ard s as m a y b e p re sc rib e d , n o tify c e rta in cla sse s o f re g iste re d
certain p erso n s, a n d th e sp ecial p ro c e d u re s to b e fo llo w e d b y su c h p e rso n s in c lu d in g th o se w ith
processes.
r e g a r d to r e g is tr a tio n , f u r n is h in g o f re tu r n , p a y m e n t o f ta x a n d a d m in is tr a tio n o f
su c h p e rso n s.
Goods and 149. ( ! ) E v e ry re g iste re d p e rso n m a y b e a ssig n e d a g o o d s a n d serv ices ta x c o m p lia n c e

services tax ra tin g sc o re b y th e G o v e rn m e n t b a se d o n h is re c o rd o f c o m p lia n c e w ith th e p ro v isio n s o f
compliance
this A ct.
rating.
( 2 ) T h e g o o d s a n d serv ices ta x c o m p lia n c e ra tin g sco re m a y b e d e te rm in e d o n th e
b asis o f su c h p a ra m e te rs as m a y b e p rescrib ed .
(5) T h e g o o d s a n d serv ices ta x c o m p lia n c e ra tin g sc o re m a y b e u p d a te d at p e rio d ic

in terv als a n d in tim a te d to th e re g iste re d p e rso n a n d also p la c e d in th e p u b lic d o m a in in su ch
m a n n e r as m a y b e p rescrib ed .
Obligation to 150. (1) A n y p e rso n , b e in g —

furnish
information ( a ) a ta x a b le p e rso n ; o r
return.
( b ) a lo c a l au th o rity o r o th e r p u b lic b o d y o r a sso c ia tio n ; o r
(c) an y a u th o rity o f th e S tate G o v e rn m e n t re sp o n sib le fo r th e c o lle c tio n o f v a lu e

a d d e d ta x o r sales ta x o r S tate e x c ise d u ty o r an a u th o rity o f th e C e n tra l G o v e rn m e n t
re sp o n sib le fo r th e c o lle c tio n o f e x c ise d u ty o r c u sto m s d u ty ; o r
(d) an in c o m e ta x a u th o rity a p p o in te d u n d e r th e p ro v isio n s o f th e In c o m e -ta x

A ct, 1961; o r 43 of 1961.
(e) a b a n k in g c o m p a n y w ith in th e m e a n in g o f c la u se (a ) o f se c tio n 4 5 A o f th e

R e se rv e B a n k o f In d ia A ct, 1934; o r 2 of 1934.
( f a S tate E le c tric ity B o a rd o r an e le c tric ity d is trib u tio n o r tra n sm issio n lic e n se e
u n d e r th e E le c tric ity A c t, 2 0 0 3 , o r an y o th e r e n tity e n tru ste d w ith su c h fu n c tio n s b y 36 of 2003.
th e C e n tra l G o v e rn m e n t o r th e S ta te G o v e rn m e n t; o r
(g) th e R e g istra r o r S u b -R e g istra r a p p o in te d u n d e r se c tio n 6 o f th e R e g istra tio n

16 of 1908. A ct, 1908; o r
18 of 2013. (h) a R e g istra r w ith in th e m e a n in g o f th e C o m p a n ie s A c t, 2 0 1 3 ; o r
(i) th e re g iste rin g a u th o rity e m p o w e re d to re g iste r m o to r v e h ic le s u n d e r th e

59 of 1988. M o to r V ehicles A ct, 1988; o r
(j ) th e C o lle c to r re fe rre d to in c la u s e (c) o f se c tio n 3 o f th e R ig h t to F a ir

C o m p e n sa tio n a n d T ra n sp aren cy in L a n d A cq u isitio n , R e h a b ilita tio n a n d R e se ttle m e n t
30 of 2013. A ct, 2 0 1 3 ; o r
(k ) th e re c o g n ise d sto c k e x c h a n g e re fe rre d to in c la u se ( f o f se c tio n 2 o f th e

42 of 1956. S ecu rities C o n tra c ts (R e g u la tio n ) A c t, 1956; o r
(l) a d e p o sito ry re fe rre d to in c la u se (e) o f su b -se c tio n (1) o f se c tio n 2 o f th e

22 of 1996. D e p o sito rie s A ct, 1996; o r
(m ) an o ffic e r o f th e R e se rv e B a n k o f In d ia as c o n stitu te d u n d e r se c tio n 3 o f th e

2 of 1934. R e se rv e B a n k o f In d ia A c t, 1934; o r
(n) th e G o o d s a n d S e rv ic e s T ax N e tw o rk , a c o m p a n y re g is te re d u n d e r th e
18 of 2013. C o m p a n ie s A c t, 2 0 1 3 ; o r
(o) a p e rs o n to w h o m a U n iq u e Id e n tity N u m b e r h a s b e e n g ra n te d u n d e r
su b -se c tio n (9) o f se c tio n 25; o r
(p ) any o th e r p e rso n as m a y b e sp ecified , o n th e reco m m e n d a tio n s o f th e C ouncil,

b y th e G o v e rn m e n t,
w h o is re sp o n sib le fo r m a in ta in in g re c o rd o f re g istra tio n o r sta te m e n t o f a c co u n ts o r any

perio d ic retu rn o r d o cu m en t co n tain in g d etails o f p ay m e n t o f tax an d o th er d etails o f transaction
o f g o o d s o r serv ices o r b o th o r tra n sa c tio n s re la te d to a b a n k a c c o u n t o r c o n su m p tio n o f
e lec tric ity o r tra n sa c tio n o f p u rc h a se , sale o r e x c h a n g e o f g o o d s o r p ro p e rty o r rig h t o r
in te re st in a p ro p e rty u n d e r an y la w fo r th e tim e b e in g in fo rce, sh all fu rn ish an in fo rm a tio n
re tu rn o f th e sa m e in re s p e c t o f su c h p e rio d s, w ith in su c h tim e, in su c h fo rm a n d m a n n e r an d
to su c h a u th o rity o r a g e n c y as m a y b e p rescrib ed .
(2) W h e re th e C o m m issio n e r, o r an o ffic e r a u th o rise d b y h im in th is b eh a lf, c o n sid ers

th a t th e in fo rm a tio n fu rn ish e d in th e in fo rm a tio n re tu rn is d efec tiv e , h e m a y in tim a te th e
d e fe c t to th e p e rs o n w h o h as fu rn ish e d su c h in fo rm a tio n re tu rn a n d g iv e h im an o p p o rtu n ity
o f re c tify in g th e d e fe c t w ith in a p e rio d o f th irty day s fro m th e d a te o f su c h in tim a tio n o r
w ith in su c h fu rth e r p e rio d w h ich , o n an a p p lic a tio n m a d e in th is b eh a lf, th e sa id au th o rity
m a y a llo w a n d if th e d e fe c t is n o t re c tifie d w ith in th e sa id p e rio d o f th irty d ay s or, th e fu rth e r
p e rio d so a llo w ed , th en , n o tw ith sta n d in g a n y th in g c o n ta in e d in an y o th e r p ro v isio n s o f this
A ct, su c h in fo rm a tio n re tu rn sh all b e tre a te d as n o t fu rn ish e d a n d th e p ro v isio n s o f this A c t
shall apply.
(3) W h e re a p e rso n w h o is re q u ire d to fu rn ish in fo rm a tio n re tu rn h as n o t fu rn ish e d th e

sam e w ith in th e tim e sp e c ifie d in su b -se c tio n (1) o r su b -se c tio n (2), th e sa id a u th o rity m a y
serv e u p o n h im a n o tic e re q u irin g fu rn ish in g o f su c h in fo rm a tio n re tu rn w ith in a p e rio d n o t
ex c e e d in g n in e ty d ay s fro m th e d a te o f se rv ic e o f th e n o tic e a n d su c h p e rso n sh all fu rn ish
th e in fo rm a tio n retu rn .
151. (1) T h e C o m m iss io n e r m ay, if h e c o n sid e rs th a t it is n e c e ss a ry so to do,Powerb y to

n o tific a tio n , d ire c t th a t statistics m a y b e c o lle c te d re la tin g to an y m a tte r d e a lt w ith b y o r in collect
statistics.
c o n n e c tio n w ith this A ct.
( 2 ) U p o n su c h n o tific a tio n b e in g issu ed , th e C o m m issio n e r, o r an y p e rs o n a u th o rise d

b y h im in th is b e h a lf, m a y c a ll u p o n th e c o n c e rn e d p e rso n s to fu rn ish su c h in fo rm a tio n o r
retu rn s, in su c h fo rm a n d m a n n e r as m a y b e p re sc rib e d , re la tin g to an y m a tte r in re s p e c t o f
w h ic h statistics is to b e c o lle c te d .
Bar on 152. ( ! ) N o in fo rm a tio n o f an y in d iv id u a l re tu rn o r p a rt th e re o f w ith re sp e c t to any

disclosure of m a tte r g iv e n fo r th e p u rp o se s o f se c tio n 150 o r se c tio n 151 shall, w ith o u t th e p rev io u s
information.
c o n se n t in w ritin g o f th e c o n c e rn e d p e rso n o r h is a u th o rise d re p re se n ta tiv e , b e p u b lish e d in
such m a n n e r so as to en a b le su ch p articu lars to b e id en tified as re ferrin g to a p artic u la r p erso n
an d n o su ch in fo rm atio n shall b e u se d fo r th e p u rp o se o f any p ro ceed in g s u n d e r this A c t.
(2) E x c e p t fo r th e p u rp o se s o f p ro se c u tio n u n d e r th is A c t o r an y o th e r A c t fo r th e tim e

b e in g in fo rce, n o p e rso n w h o is n o t e n g a g e d in th e c o lle c tio n o f statistics u n d e r this A c t o r
c o m p ila tio n o r co m p u te risa tio n th e re o f fo r th e p u rp o se s o f th is A ct, shall b e p e rm itte d to see
o r h a v e access to an y in fo rm a tio n o r an y in d iv id u a l re tu rn re fe rre d to in se c tio n 151.
(5) N o th in g in th is se c tio n sh all a p p ly to th e p u b lic a tio n o f an y in fo rm a tio n re la tin g to

a cla ss o f ta x a b le p e rso n s o r class o f tra n sa c tio n s, if in th e o p in io n o f th e C o m m issio n e r, it is
d e sira b le in th e p u b lic in te re st to p u b lish su c h in fo rm atio n .
Taking 153. A n y o ffic e r n o t b e lo w th e ra n k o f A ssista n t C o m m issio n e r m ay, h a v in g re g a rd to

assistance
th e n a tu re a n d c o m p le x ity o f th e ca se a n d th e in te re st o f re v e n u e , ta k e a ssista n c e o f any
from an
expert. e x p e rt at an y stag e o f scrutiny, inq u iry , in v e stig a tio n o r an y o th e r p ro c e e d in g s b e fo re him .
Power to take 154. T h e C o m m issio n e r o r an o ffic e r a u th o rise d b y h im m a y ta k e sam p le s o f g o o d s

samples. fro m th e p o sse ssio n o f an y ta x a b le p e rso n , w h e re h e co n sid e rs it n e cessary , a n d p ro v id e a
re c e ip t fo r an y sam p les so taken.
Burden of 155. W h e re a n y p e rso n claim s th a t h e is e lig ib le fo r in p u t ta x c re d it u n d e r th is A ct, th e

proof. b u rd e n o f p ro v in g su c h c la im sh all lie o n su c h p erso n .
Persons 156. A ll p e rso n s d isc h a rg in g fu n c tio n s u n d e r th is A c t sh all b e d e e m e d to b e p u b lic

deemed to be serv an ts w ith in th e m e a n in g o f se c tio n 21 o f th e In d ia n P e n a l C ode. 45 of 1860.
public servants.
Protection of 157. (1) N o suit, p ro se c u tio n o r o th e r le g a l p ro c e e d in g s sh all lie a g a in st th e P resid en t,
action taken S tate P re sid e n t, M e m b e rs, o ffic e rs o r o th e r e m p lo y e e s o f th e A p p e lla te T rib u n al o r an y o th e r
under this Act.
p e rso n a u th o rise d b y th e sa id A p p e lla te T rib u n a l fo r a n y th in g w h ic h is in g o o d fa ith d o n e o r
in te n d e d to b e d o n e u n d e r th is A c t o r th e ru le s m a d e thereunder.
(2) N o suit, p ro se c u tio n o r o th e r leg al p ro ceed in g s shall lie ag ain st an y o ffic e r ap p o in ted
o r a u th o rise d u n d e r this A c t fo r a n y th in g w h ic h is d o n e o r in te n d e d to b e d o n e in g o o d fa ith
u n d e r this A c t o r th e ru le s m a d e th ereu n d er.
Disclosure of 158. (1) A ll p a rtic u la rs c o n ta in e d in an y sta te m e n t m ad e, re tu rn fu rn ish e d o r acco u n ts

information o r d o c u m e n ts p ro d u c e d in a c c o rd a n c e w ith this A c t, o r in an y re c o rd o f e v id e n c e g iv e n in th e
by a public
c o u rse o f an y p ro c e e d in g s u n d e r this A c t (o th e r th a n p ro c e e d in g s b e fo re a c rim in a l co u rt), o r
servant.
in an y re c o rd o f an y p ro c e e d in g s u n d e r this A c t sh all, sa v e as p ro v id e d in su b -se c tio n (5),
n o t b e d isclo sed .
(2) N o tw ith sta n d in g a n y th in g c o n ta in e d in th e In d ia n E v id e n c e A c t, 1872, n o c o u rt 1 of 1872.

shall, sav e as o th erw ise p ro v id e d in su b -sectio n (5), re q u ire any o fficer ap p o in ted o r au th o rised
u n d e r this A c t to p ro d u c e b e fo re it o r to g iv e e v id e n c e b e fo re it in re sp e c t o f p a rtic u la rs
re fe rre d to in su b -se c tio n ( 1 ).
(5) N o th in g c o n ta in e d in th is se c tio n sh all a p p ly to th e d isc lo su re o f,—
(a ) a n y p a rtic u la rs in re s p e c t o f an y state m e n t, re tu rn , a c co u n ts, d o cu m en ts,

ev id e n c e , affid a v it o r d ep o sitio n , fo r th e p u rp o se o f an y p ro se c u tio n u n d e r th e In d ia n
P e n a l C o d e o r th e P re v e n tio n o f C o rru p tio n A ct, 1988, o r an y o th e r la w fo r th e tim e 45 of 1860.
b e in g in fo rce; o r 49 of 1988.
(b) a n y p a rtic u la rs to th e C e n tra l G o v e rn m e n t o r th e S tate G o v e rn m e n t o r to any

p e rso n a ctin g in th e im p le m e n ta tio n o f th is A c t, fo r th e p u rp o se s o f c a rry in g o u t th e
o b jects o f this A c t; o r
(c) any particulars w hen su ch disclosure is occasio n ed b y th e law ful exercise un d er

this A c t o f any process fo r th e service o f any notice o r recovery o f any dem and; or
(d) a n y p a rtic u la rs to a c iv il c o u rt in an y su it o r p ro c e e d in g s, to w h ic h th e
G o v e rn m e n t o r an y a u th o rity u n d e r th is A c t is a party , w h ic h re la te s to an y m a tte r
a risin g o u t o f an y p ro c e e d in g s u n d e r th is A c t o r u n d e r an y o th e r la w fo r th e tim e b e in g
in fo rc e a u th o risin g an y su c h au th o rity to e x e rc ise an y p o w e rs th e re u n d e r; o r
(e) any p a rticu lars to an y o ffic e r a p p o in te d fo r th e p u rp o se o f au d it o f tax receip ts

o r refu n d s o f th e ta x im p o se d b y this A c t; o r
( f an y p a rtic u la rs w h e re su c h p a rtic u la rs are re le v a n t fo r th e p u rp o se s o f any

in q u iry in to th e c o n d u c t o f an y o ffic e r ap p o in te d o r a u th o rise d u n d e r th is A ct, to any
p e rso n o r p e rso n s a p p o in te d as an in q u iry o ffic e r u n d e r an y la w fo r th e tim e b e in g in
fo rce; o r
(g) an y su c h p a rtic u la rs to an o ffic e r o f th e C e n tra l G o v e rn m e n t o r o f an y S tate

G o v e rn m e n t, as m a y b e n e c e ssa ry fo r th e p u rp o s e o f e n a b lin g th a t G o v e rn m e n t to le v y
o r re a lise an y ta x o r d u ty ; o r
(h) an y p a rtic u la rs w h e n su c h d isc lo su re is o c c a sio n e d b y th e la w fu l e x e rc ise b y

a p u b lic se rv a n t o r an y o th e r sta tu to ry authority, o f h is o r its p o w e rs u n d e r an y la w fo r
th e tim e b e in g in fo rce; o r
(i) a n y p a rtic u la rs re le v a n t to a n y in q u iry in to a c h a rg e o f m is c o n d u c t in

c o n n e c tio n w ith an y p ro c e e d in g s u n d e r th is A c t ag a in st a p ra c tisin g ad v o cate, a tax
p ractitio n er, a p ra c tisin g co st acco u n tan t, a p ra c tisin g ch a rte re d acco u n tan t, a p ractisin g
c o m p a n y se c re ta ry to th e a u th o rity e m p o w e re d to ta k e d isc ip lin a ry a c tio n a g a in st th e
m em b e rs p ra c tisin g th e p ro fe ssio n o f a le g a l p ractitio n er, a c o st acco u n tan t, a c h a rte re d
a c c o u n ta n t o r a c o m p a n y secretary , as th e ca se m a y b e ; o r
j ) an y p a rtic u la rs to an y a g e n c y a p p o in te d fo r th e p u rp o se s o f d a ta e n try o n
an y a u to m a te d sy s te m o r fo r th e p u rp o s e o f o p e ra tin g , u p g ra d in g o r m a in ta in in g any
a u to m a te d sy ste m w h e re su c h a g e n c y is c o n tra c tu a lly b o u n d n o t to u se o r d isc lo se
su c h p a rtic u la rs e x c e p t fo r th e a fo re sa id p u rp o se s; o r
(k ) a n y p a rtic u la rs to an o ffic e r o f th e G o v e rn m e n t as m a y b e n e c e ssa ry fo r th e

p u rp o se s o f a n y o th e r la w fo r th e tim e b e in g in fo rce; o r
(l) any in fo rm a tio n re la tin g to an y class o f tax ab le p e rso n s o r class o f tran sactio n s
fo r p u b lic a tio n , if, in th e o p in io n o f th e C o m m issio n e r, it is d e sira b le in th e p u b lic
in terest, to p u b lish su c h in fo rm atio n .
159. ( ! ) If th e C o m m issio n e r, o r an y o th e r o ffic e r au th o rise d b y h im in th is be h a lf, is o f Publication of

information
th e o p in io n th a t it is n e c e ssa ry o r e x p e d ie n t in th e p u b lic in te re st to p u b lish th e n a m e o f any
in respect of
p e rso n a n d an y o th e r p a rtic u la rs rela tin g to an y p ro c e e d in g s o r p ro se c u tio n u n d e r th is A c t persons in
in resp e c t o f su c h p e rso n , it m a y c a u se to b e p u b lish e d su c h n a m e a n d p a rtic u la rs in su ch certain cases.
m a n n e r as it th in k s fit.
(2) N o p u b lic a tio n u n d e r th is se c tio n shall b e m a d e in re la tio n to an y p e n a lty im p o se d

u n d e r th is A c t u n til th e tim e fo r p re s e n tin g an a p p e a l to th e A p p e lla te A u th o rity u n d e r
sec tio n 107 h as e x p ire d w ith o u t an ap p eal h a v in g b e e n p re se n te d o r th e ap p eal, if p rese n te d ,
h as b e e n d isp o se d of.
E x p l a n a tio n .— In th e c a se o f firm , c o m p a n y o r o th e r a s s o c ia tio n o f p e rs o n s, th e

n am e s o f th e p a rtn e rs o f th e firm , d irecto rs, m a n a g in g ag en ts, se cretaries a n d tre a su re rs o r
m an a g e rs o f th e co m p an y , o r th e m em b e rs o f th e a sso ciatio n , as th e c a se m a y b e, m a y also be
p u b lish e d if, in th e o p in io n o f th e C o m m issio n e r, o r an y o th e r o ffic e r a u th o rise d b y h im in
this b eh a lf, c irc u m sta n c e s o f th e c a se ju s tify it.
160. (1 ) N o a s s e s s m e n t, r e - a s s e s s m e n t, a d ju d ic a tio n , re v ie w , re v is io n , a p p e a l, Assessment

proceedings,
rectificatio n , n o tic e , su m m o n s o r o th e r p ro c e e d in g s d o n e , accep ted , m a d e , issu ed , in itiated ,
etc., not to be
o r p u rp o rte d to h a v e b e e n d o n e, a c cep ted , m ad e, issu ed , in itia te d in p u rsu a n c e o f an y o f th e invalid on
p ro v isio n s o f this A c t shall b e in v a lid o r d e e m e d to b e in v a lid m e re ly b y reaso n o f any certain
grounds.
m istak e, d e fe c t o r o m issio n th e re in , if su c h asse ssm e n t, re -a sse ssm e n t, a d ju d ic a tio n , review ,

rev isio n , ap p eal, re c tific a tio n , n o tic e , su m m o n s o r o th e r p ro c e e d in g s are in su b sta n c e an d
effect in c o n fo rm ity w ith o r a c c o rd in g to th e in te n ts, p u rp o se s a n d re q u ire m e n ts o f this A c t
o r an y e x istin g law.
(2) T h e se rv ic e o f an y n o tic e , o rd e r o r c o m m u n ic a tio n sh all n o t b e c a lle d in q u estio n ,

if th e n o tic e , o rd e r o r co m m u n ic a tio n , as th e c a se m a y b e, h a s alre a d y b e e n ac te d u p o n b y th e
p e rso n to w h o m it is is su e d o r w h e re su c h se rv ic e h as n o t b e e n c a lle d in q u e stio n at o r in th e
e a rlie r p ro c e e d in g s c o m m e n c e d , c o n tin u e d o r fin a lise d p u rs u a n t to su c h n o tic e , o rd e r o r
com m unication.
Rectification 161. W ith o u t p re ju d ic e to th e p ro v isio n s o f se c tio n 160, a n d n o tw ith sta n d in g a n y th in g

of errors c o n ta in e d in an y o th e r p ro v isio n s o f this A c t, an y authority, w h o h a s p a ss e d o r issu e d any
apparent on
the face of d ec isio n o r o rd e r o r n o tic e o r c e rtific a te o r an y o th e r d o c u m e n t, m a y re c tify an y e rro r w h ic h
record. is a p p a re n t o n th e fa c e o f re c o rd in su c h d e c isio n o r o rd e r o r n o tic e o r ce rtific a te o r an y o th e r
d o c u m e n t, e ith e r o n its o w n m o tio n o r w h e re su c h e rro r is b ro u g h t to its n o tic e b y an y o ffic e r
ap p o in te d u n d e r this A c t o r an o ffic e r a p p o in te d u n d e r th e S tate G o o d s a n d S erv ices T ax A c t
o r an o ffic e r ap p o in te d u n d e r th e U n io n T errito ry G o o d s a n d S erv ices Tax A c t o r b y th e
a ffe c te d p e rs o n w ith in a p e rio d o f th re e m o n th s fr o m th e d a te o f is su e o f su c h d e c isio n o r
o rd e r o r n o tic e o r c e rtific a te o r an y o th e r d o c u m e n t, as th e c a se m a y b e :
P ro v id e d th a t n o su c h re c tific a tio n sh all b e d o n e a fter a p e rio d o f six m o n th s fro m th e

d ate o f issu e o f su c h d e c isio n o r o rd e r o r n o tic e o r c e rtific a te o r an y o th e r d o cu m en t:
P ro v id e d fu rth e r th a t th e sa id p e rio d o f six m o n th s shall n o t a p p ly in su c h cases w h e re

th e re c tific a tio n is p u re ly in th e n a tu re o f c o rre c tio n o f a c le ric a l o r a rith m e tic a l error, a risin g
fro m an y acc id e n ta l slip o r om issio n :
P ro v id e d also th a t w h e re su c h re c tific a tio n a d v e rse ly affects an y p e rso n , th e p rin c ip le s

o f n a tu ra l ju s tic e sh all b e fo llo w e d b y th e a u th o rity c a rry in g o u t su c h re ctificatio n .
Bar on 162. S a v e as p ro v id e d in sectio n s 117 a n d 118, n o civ il c o u rt sh all h a v e ju risd ic tio n to

jurisdiction of deal w ith o r d e c id e an y q u e stio n a risin g fro m o r re la tin g to a n y th in g d o n e o r p u rp o rte d to b e
civil courts.
d o n e u n d e r this A ct.
Levy of fee. 163. W h e re v e r a c o p y o f an y o rd e r o r d o c u m e n t is to b e p ro v id e d to an y p e rs o n o n an

a p p lic a tio n m a d e b y h im fo r th a t p u rp o se , th e re sh all b e p a id su c h fe e as m a y b e p rescrib ed .
Power of 164. ( ! ) T h e G o v e rn m e n t m ay, o n th e re c o m m e n d a tio n s o f th e C o u n cil, b y n o tificatio n ,

Government m a k e ru le s fo r c a rry in g o u t th e p ro v isio n s o f th is A ct.
to make rules.
(2) W ith o u t p re ju d ic e to th e g e n e ra lity o f th e p ro v is io n s o f s u b -se c tio n (1 ), th e
G o v e rn m e n t m a y m a k e ru le s fo r all o r an y o f th e m a tte rs w h ic h b y this A c t are re q u ire d to be,
o r m a y b e, p re s c rib e d o r in re s p e c t o f w h ic h p ro v isio n s a re to b e o r m a y b e m a d e b y rules.
(5) T h e p o w e r to m a k e ru le s c o n fe rre d b y th is se c tio n sh all in c lu d e th e p o w e r to g iv e

re tro sp e c tiv e e ffe c t to th e ru le s o r an y o f th e m fro m a d a te n o t e a rlie r th a n th e d a te o n w h ic h
th e p ro v isio n s o f this A c t c o m e in to fo rce.
(4) A n y ru le s m a d e u n d e r su b -se c tio n (1) o r su b -se c tio n (2) m a y p ro v id e th a t a

co n tra v e n tio n th e re o f shall b e lia b le to a p e n a lty n o t e x c e e d in g te n th o u sa n d ru p ees.
Power to make 165. T h e B o a rd m ay, b y n o tific a tio n , m a k e re g u la tio n s c o n siste n t w ith th is A c t a n d th e

regulations. ru le s m a d e th e re u n d e r to c a rry o u t th e p ro v isio n s o f this A ct.
Laying of 166. E v e ry ru le m a d e b y th e G o v e rn m e n t, e v e ry re g u la tio n m a d e b y th e B o a rd an d

rules,
e v e ry n o tific a tio n issu e d b y th e G o v e rn m e n t u n d e r th is A c t, sh all b e laid , as so o n as m a y b e
regulations
and a fte r it is m a d e o r issu ed , b e fo re e a c h H o u se o f P a rlia m e n t, w h ile it is in sessio n , fo r a to tal
notifications. p e rio d o f th irty d ay s w h ic h m a y b e c o m p rise d in o n e se ssio n o r in tw o o r m o re su c c e ssiv e
sessio n s, a n d if, b e fo re th e ex p iry o f th e se ssio n im m e d ia te ly fo llo w in g th e sessio n o r th e
su c c e ssiv e se ssio n s afo re sa id , b o th H o u se s a g re e in m a k in g an y m o d ific a tio n in th e ru le o r

re g u la tio n o r in th e n o tific a tio n , as th e c a se m a y b e, o r b o th H o u se s ag re e th a t th e ru le o r
reg u la tio n o r th e n o tific a tio n sh o u ld n o t b e m ad e, th e ru le o r re g u la tio n o r n o tific a tio n , as th e
case m a y b e, sh all th e re a fte r h a v e e ffe c t o n ly in su c h m o d ifie d fo rm o r b e o f n o e ffect, as th e
case m a y b e; so, h o w ev er, th a t an y su c h m o d ific a tio n o r an n u lm e n t shall b e w ith o u t p re ju d ic e
to th e v a lid ity o f a n y th in g p re v io u sly d o n e u n d e r th a t ru le o r re g u la tio n o r n o tific a tio n , as
th e c a se m a y be.
167. T h e C o m m issio n e r m ay, b y n o tific a tio n , d ire c t th a t su b je c t to su c h c o n d itio n s, if Delegation of

any, as m a y b e sp e c ifie d in th e n o tific a tio n , an y p o w e r e x e rc isa b le b y an y au th o rity o r o fficer powers.
u n d e r this A c t m a y b e e x e rc isa b le also b y a n o th e r a u th o rity o r o ffic e r as m a y b e sp e c ifie d in
su c h n o tificatio n .
168. (1) T h e B o a rd m ay, if it co n sid e rs it n e c e ssa ry o r e x p e d ie n t so to d o fo r th e Power to issue

p u rp o se o f u n ifo rm ity in th e im p le m e n ta tio n o f th is A ct, issu e su c h o rd ers, in stru c tio n s o r instructions or
directions.
d ire c tio n s to th e c e n tra l ta x o ffic e rs as it m a y d e e m fit, a n d th e re u p o n all su c h o ffic e rs a n d all
o th e r p e rso n s e m p lo y e d in th e im p le m e n ta tio n o f this A c t sh all o b se rv e a n d fo llo w su ch
o rd ers, in stru c tio n s o r d irectio n s.
(2 ) T h e C o m m is s io n e r s p e c ifie d in c la u s e (9 1 ) o f s e c tio n 2 , s u b -s e c tio n (5 ) o f

s e c tio n 5, c la u s e (b ) o f s u b -s e c tio n (9 ) o f s e c tio n 2 5 , s u b -s e c tio n s (5 ) a n d (4 ) o f s e c tio n
35, s u b -s e c tio n (1 ) o f s e c tio n 3 7 , s u b -s e c tio n (2 ) o f s e c tio n 3 8 , s u b -s e c tio n (6 ) o f s e c tio n
39, s u b - s e c tio n (5 ) o f s e c tio n 6 6 , s u b - s e c tio n (1 ) o f s e c tio n 143, s u b - s e c tio n (1 ) o f
s e c tio n 151, c la u s e (l) o f s u b -s e c tio n (5 ) o f s e c tio n 158 a n d s e c tio n 167 s h a ll m e a n a
C o m m is s io n e r o r J o in t S e c re ta ry p o s te d in th e B o a rd a n d su c h C o m m is s io n e r o r J o in t
S e c re ta ry s h a ll e x e rc is e th e p o w e rs s p e c ifie d in th e s a id s e c tio n s w ith th e a p p ro v a l o f
th e B o a rd .
169. (1 ) A n y d e c is io n , o rd er, su m m o n s, n o tic e o r o th e r c o m m u n ic a tio n u n d e r th is Service of

A c t o r th e ru le s m a d e th e re u n d e r sh a ll b e se rv e d b y a n y o n e o f th e fo llo w in g m e th o d s, notice in
certain
n am ely :—
circumstances.
(a ) b y g iv in g o r te n d e rin g it d ire c tly o r b y a m e s s e n g e r in c lu d in g a c o u rie r to
th e a d d re s se e o r th e ta x a b le p e rs o n o r to h is m a n a g e r o r a u th o rise d re p re s e n ta tiv e o r
an a d v o c a te o r a ta x p ra c titio n e r h o ld in g a u th o rity to a p p e a r in th e p ro c e e d in g s o n
b e h a lf o f th e ta x a b le p e rs o n o r to a p e rs o n re g u la rly e m p lo y e d b y h im in c o n n e c tio n
w ith th e b u sin e ss, o r to a n y a d u lt m e m b e r o f fa m ily re s id in g w ith th e ta x a b le p e rso n ;
or
( b ) b y re g iste re d p o st o r sp e e d p o st o r c o u rie r w ith a c k n o w le d g e m e n t due, to

th e p e rso n fo r w h o m it is in te n d e d o r h is a u th o rise d re p re se n ta tiv e , if any, at h is la s t
k n o w n p la c e o f b u sin e ss o r re sid e n c e ; o r
(c) b y se n d in g a c o m m u n ic a tio n to h is e -m a il ad d ress p ro v id e d at th e tim e o f

re g istra tio n o r as a m e n d e d fro m tim e to tim e; o r
(d) b y m a k in g it av a ila b le o n th e c o m m o n p o rta l; o r
(e) b y p u b lic a tio n in a n e w sp a p e r c irc u la tin g in th e lo c a lity in w h ic h th e ta x a b le

p e rso n o r th e p e rs o n to w h o m it is is su e d is la s t k n o w n to h a v e re sid e d , c a rrie d o n
b u sin e ss o r p e rs o n a lly w o rk e d fo r g ain ; o r
( f if n o n e o f th e m o d es afo resaid is practicab le, b y affix in g it in so m e co n sp icu o u s

p la c e at h is last kn o w n p la c e o f b u sin ess o r re sid e n c e an d if su ch m o d e is n o t p racticab le
fo r an y re a so n , th e n b y affix in g a c o p y th e re o f o n th e n o tic e b o a rd o f th e o ffic e o f th e
c o n c e rn e d o ffic e r o r au th o rity w h o o r w h ic h p a ss e d su c h d e c isio n o r o rd e r o r issu e d
su c h su m m o n s o r n o tice.
( 2 ) E v e ry d e c isio n , order, su m m o n s, n o tic e o r an y c o m m u n ic a tio n sh all b e d e e m e d to

h a v e b e e n se rv e d on th e d a te o n w h ic h it is te n d e re d o r p u b lish e d o r a co p y th e re o f is affix e d
in th e m a n n e r p ro v id e d in su b -se c tio n (1).
(3) W h e n su c h d e c isio n , order, su m m o n s, n o tic e o r an y c o m m u n ic a tio n is sen t b y

re g iste re d p o st o r sp e e d p o st, it sh all b e d e e m e d to h a v e b e e n re c e iv e d b y th e a d d re sse e at
th e ex p iry o f th e p e rio d n o rm a lly ta k e n b y su c h p o st in tra n sit u n le ss th e c o n tra ry is p ro v e d .
Rounding off 170. T h e am o u n t o f tax, in te re st, p en alty , fin e o r an y o th e r su m p a y a b le , a n d th e

of tax, etc. am o u n t o f re fu n d o r an y o th e r su m due, u n d e r th e p ro v isio n s o f th is A c t shall b e ro u n d e d o ff
to th e n e a re s t ru p e e and, fo r th is p u rp o se , w h e re su c h am o u n t co n ta in s a p a rt o f a ru p e e
co n sistin g o f p a ise , th en , if su c h p a rt is fifty p a ise o r m o re , it sh all b e in c re a se d to o n e ru p e e
a n d if su c h p a rt is less th a n fifty p a is e it sh all b e ig n o re d .
Anti 171. ( ! ) A n y re d u c tio n in ra te o f ta x o n an y su p p ly o f g o o d s o r serv ices o r th e b e n e fit

profiteering o f in p u t ta x c re d it sh all b e p a ss e d o n to th e re c ip ie n t b y w a y o f c o m m e n su ra te re d u c tio n in
measure.
p ric e s.
(2) T h e C e n tra l G o v e rn m e n t m ay, o n re c o m m e n d a tio n s o f th e C o u n c il, b y n o tificatio n ,

co n stitu te an A u th o rity , o r e m p o w e r an e x istin g A u th o rity c o n stitu te d u n d e r an y la w fo r th e
tim e b e in g in fo rce, to e x a m in e w h e th e r in p u t ta x c red its a v a ile d b y an y re g iste re d p e rso n o r
th e re d u c tio n in th e ta x ra te h a v e a c tu a lly re s u lte d in a c o m m e n su ra te re d u c tio n in th e p ric e
o f th e g o o d s o r serv ices o r b o th su p p lie d b y h im .
(3) T h e A u th o rity re fe rre d to in su b -sectio n (2) shall ex erc ise su ch p o w ers a n d d isch arg e
su c h fu n c tio n s as m a y b e p re sc rib e d .
Removal of 172. (1) I f an y d iffic u lty arises in g iv in g e ffe c t to an y p ro v isio n s o f th is A c t, th e

difficulties. G o v e rn m e n t m ay, o n th e re c o m m e n d a tio n s o f th e C o u n c il, b y a g e n e ra l o r a sp ecial o rd e r
p u b lish e d in th e O ffic ia l G azette, m a k e su c h p ro v isio n s n o t in c o n siste n t w ith th e p ro v isio n s
o f this A c t o r th e ru le s o r re g u la tio n s m a d e th ereu n d er, as m a y b e n e c e ssa ry o r e x p e d ie n t fo r
th e p u rp o s e o f re m o v in g th e sa id d iffic u lty :
P ro v id e d th a t n o su c h o rd e r shall b e m a d e a fte r th e ex p iry o f a p e rio d o f th re e y e a rs

fro m th e d a te o f c o m m e n c e m e n t o f this A ct.
(2) E v e ry o rd e r m a d e u n d e r this sectio n shall b e laid, as so o n as m a y b e, after it is m ad e,

b e fo re e a c h H o u se o f P arliam en t.
Amendment 173. S a v e as o th e rw ise p ro v id e d in this A c t, C h a p te r V o f th e F in a n c e A c t, 1994 shall

of Act 32 of b e om itted .
1994.
Repeal and 174. (1) S av e as o th erw ise p ro v id e d in this A ct, o n an d fro m th e date o f c o m m en cem en t
saving. o f th is A c t, th e C e n tra l E x c is e A c t, 1944 (e x c e p t as re s p e c ts g o o d s in c lu d e d in e n try 8 4 o f 1 of 1944.
th e U n io n L is t o f th e S e v e n th S c h e d u le to th e C o n stitu tio n ), th e M e d ic in a l a n d T o ilet
P re p a ra tio n s (E x c ise D u tie s ) A c t, 1955, th e A d d itio n a l D u tie s o f E x c is e (G o o d s o f S p e c ia l 16 of 1955.
Im p o rta n c e ) A c t, 1957, th e A d d itio n a l D u tie s o f E x c is e (T ex tiles a n d T e x tile A rtic le s) 58 of 1957.
A ct, 1978, an d th e C e n tral E x c ise T ariff A ct, 1985 (h e re a fte r re fe rre d to as th e re p e a le d A cts) 40 of 1978.
a re h e re b y re p e a le d . 5 of 1986.
(2) T h e re p e a l o f th e sa id A c ts a n d th e a m e n d m e n t o f th e F in a n c e A c t, 1994 (h e re a fte r 32 of 1994.

re fe rre d to as “ su c h a m e n d m e n t” o r “ a m e n d e d A c t” , as th e c a se m a y b e ) to th e e x te n t
m e n tio n e d in th e su b -se c tio n (1) o r se c tio n 173 sh all n o t—
(a ) re v iv e a n y th in g n o t in fo rc e o r e x istin g at th e tim e o f su c h a m e n d m e n t o r
re p e a l; o r
(b) a ffect th e p re v io u s o p e ra tio n o f th e a m e n d e d A c t o r re p e a le d A c ts a n d o rd ers

o r a n y th in g d u ly d o n e o r su ffe re d th e re u n d e r; o r
(c) a ffect an y right, p riv ileg e, o b lig atio n , o r liab ility acqu ired , a c cru ed o r in cu rred
u n d e r th e a m e n d e d A c t o r re p e a le d A cts o r o rd ers u n d e r su c h re p e a le d o r a m e n d e d
A c ts :
P ro v id e d th a t an y ta x e x e m p tio n g ra n te d as an in c e n tiv e a g a in st in v e stm e n t

th ro u g h a n o tific a tio n sh all n o t c o n tin u e as p riv ile g e if th e said n o tific a tio n is re sc in d e d
o n o r a fte r th e a p p o in te d d ay; o r
(d) a ffect an y duty, tax , su rch arg e, fin e, p en alty , in te re st as a re d u e o r m a y

b e c o m e d u e o r an y fo rfe itu re o r p u n is h m e n t in c u rre d o r in flic te d in re sp e c t o f any
o ffe n c e o r v io la tio n c o m m itte d a g a in st th e p ro v isio n s o f th e a m e n d e d A c t o r re p e a le d
A cts; o r
(e) a ffect an y in v e stig a tio n , in q u iry , v e rific a tio n (in c lu d in g sc ru tin y a n d audit),
a sse ssm e n t p ro c e e d in g s, a d ju d ic a tio n a n d an y o th e r le g a l p ro c e e d in g s o r re c o v e ry o f
arrears o r re m e d y in re sp e c t o f an y su c h duty, tax , su rch a rg e , p en alty , fin e, in terest,
rig h t, p riv ile g e , o b lig a tio n , liab ility , fo rfe itu re o r p u n ish m e n t, as afo re sa id , a n d any
su c h in v e stig a tio n , inq u iry , v e rific a tio n (in c lu d in g sc ru tin y a n d au d it), a sse ssm e n t
p ro c e e d in g s, a d ju d ic a tio n a n d o th e r leg al p ro c e e d in g s o r re c o v e ry o f arrears o r re m e d y
m a y b e in stitu ted , c o n tin u e d o r e n fo rc e d , a n d an y su c h tax , su rch arg e, p en alty , fine,
in terest, fo rfe itu re o r p u n ish m e n t m a y b e le v ie d o r im p o se d as if th e se A c ts h a d n o t
b e e n so a m e n d e d o r rep ealed ;
( f affect an y p ro ceed in g s in clu d in g th a t relatin g to an appeal, re v ie w o r referen ce,

in stitu te d b e fo re on, o r a fte r th e a p p o in te d d a y u n d e r th e sa id a m e n d e d A c t o r re p e a le d
A cts a n d su c h p ro c e e d in g s sh all b e c o n tin u e d u n d e r th e said a m e n d e d A c t o r re p e a le d
A cts as if this A c t h a d n o t c o m e in to fo rc e a n d th e sa id A cts h a d n o t b e e n a m e n d e d o r
rep ealed .
(5) T h e m e n tio n o f th e p a rtic u la r m a tte rs re fe rre d to in su b -se c tio n s (1) an d (2) shall
n o t b e h e ld to p re ju d ic e o r a ffe c t th e g e n e ra l a p p lic a tio n o f se c tio n 6 o f th e G e n e ra l C lau ses
10 of 1897. A ct, 1897 w ith re g a rd to th e e ffe c t o f rep eal.
SCHEDULE I
[See section 7]
Ac t i v i t i e s to b e trea ted as s u p p l y e v e n if m a d e w it h o u t c o n s id e r a t io n
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.
SC H ED U LE II
[See se c tio n 7]
Ac t i v i t i e s to b e trea ted as su pply o f g o ods o r su pply o f s e r v ic e s
1. T ra n sfe r
(a ) an y tra n sfe r o f th e title in g o o d s is a su p p ly o f g o o d s;
(b) an y tra n sfe r o f rig h t in g o o d s o r o f u n d iv id e d sh a re in g o o d s w ith o u t th e

tra n sfe r o f title th ereo f, is a su p p ly o f serv ices;
(c) an y tran sfe r o f title in go ods u n d e r an a g reem en t w h ic h stipulates th a t p ro p erty

in g o o d s sh all p a ss at a fu tu re d a te u p o n p a y m e n t o f full c o n sid e ra tio n as ag reed , is a
su p p ly o f goo d s.
2. L a n d a n d B u ild in g
( a ) an y lease, ten an c y , ea se m e n t, lic e n c e to o c c u p y la n d is a su p p ly o f serv ices;
( b ) an y le a se o r le ttin g o u t o f th e b u ild in g in c lu d in g a c o m m e rc ia l, in d u stria l o r

re sid e n tia l c o m p le x fo r b u sin e ss o r co m m e rc e , e ith e r w h o lly o r p artly, is a su p p ly o f
serv ic e s.
3. T re a tm e n t o r p ro cess
A n y tre a tm e n t o r p ro c e ss w h ic h is a p p lie d to a n o th e r p e rso n 's g o o d s is a su p p ly o f serv ices.
4. T ra n sfe r o f b u sin e ss assets
( a ) w h e re g o o d s fo rm in g p a rt o f th e a ssets o f a b u sin e ss a re tra n sfe rre d o r

d isp o se d o f b y o r u n d e r th e d ire c tio n s o f th e p e rs o n c a rry in g o n th e b u sin e ss so as n o
lo n g e r to fo rm p a rt o f th o se assets, w h e th e r o r n o t fo r a co n sid e ra tio n , su c h tra n sfe r o r
d isp o sa l is a su p p ly o f g o o d s b y th e p erso n ;
( b ) w h ere, b y o r u n d e r th e d ire c tio n o f a p e rs o n c a rry in g o n a b u sin e ss, g o ods

h e ld o r u se d fo r th e p u rp o se s o f th e b u sin e ss a re p u t to an y p riv a te u se o r are u se d , o r
m a d e a v a ila b le to an y p e rs o n fo r u se, fo r an y p u rp o se o th e r th a n a p u rp o s e o f th e
b u sin e ss, w h e th e r o r n o t fo r a c o n sid e ra tio n , th e u sa g e o r m a k in g a v a ila b le o f su ch
g o o d s is a su p p ly o f serv ices;
( c ) w h e re an y p e rs o n c e a se s to b e a ta x a b le p e rso n , an y g o o d s fo rm in g p a rt o f
th e assets o f a n y b u sin e ss c a rrie d o n b y h im sh all b e d e e m e d to b e su p p lie d b y h im in
th e c o u rse o r fu rth e ra n c e o f h is b u sin e ss im m e d ia te ly b e fo re h e ceases to b e a ta x a b le
p e rso n , u n le s s—
(i) th e b u sin e ss is tra n sfe rre d as a g o in g c o n c e rn to a n o th e r p e rso n ; o r
(ii) th e b u sin e ss is c a rrie d o n b y a p e rso n a l re p re se n ta tiv e w h o is d e e m e d

to b e a ta x a b le p erso n .
5. S u p p ly o f serv ices
T h e fo llo w in g sh all b e tre a te d as su p p ly o f serv ices, n a m e ly :—
( a ) re n tin g o f im m o v a b le p ro p e rty ;
( b ) c o n s tru c tio n o f a c o m p le x , b u ild in g , c iv il s tru c tu re o r a p a rt th e re o f,

in c lu d in g a c o m p le x o r b u ild in g in te n d e d fo r sa le to a b u y e r, w h o lly o r p a rtly ,
e x c e p t w h e re th e e n tire c o n sid e ra tio n h a s b e e n re c e iv e d a fte r is su a n c e o f c o m p le tio n
c e rtific a te , w h e re re q u ire d , b y th e c o m p e te n t a u th o rity o r a fte r its firs t o c c u p a tio n ,
w h ic h e v e r is earlier.
E x p la n a tio n . — F o r th e p u rp o se s o f this c lau se—
(1) th e e x p re ssio n "c o m p e te n t au th o rity " m e a n s th e G o v e rn m e n t o r any

au th o rity a u th o rise d to issu e c o m p le tio n c e rtific a te u n d e r an y la w fo r th e tim e
b e in g in fo rc e a n d in c a se o f n o n -re q u ire m e n t o f su c h c e rtific a te fro m su ch
authority, fro m a n y o f th e fo llo w in g , n a m e ly :—
(i) an arch itect re g iste re d w ith th e C o u n cil o f A rch ite c tu re c o n stitu ted
u n d e r th e A rc h ite c ts A ct, 1972; o r 20 of 1972.
(ii) a c h a rte re d e n g in e e r re g iste re d w ith th e In stitu tio n o f E n g in e e rs

(In d ia); o r
( iii ) a lic e n se d su rv e y o r o f th e re s p e c tiv e lo c a l b o d y o f th e c ity o r

to w n o r v illa g e o r d e v e lo p m e n t o r p la n n in g au th o rity ;
(2 ) th e e x p r e s s io n " c o n s tr u c tio n " in c lu d e s a d d itio n s , a lte r a tio n s ,

re p la c e m e n ts o r re m o d e llin g o f an y e x istin g c iv il stru ctu re;
(c) te m p o ra ry tra n sfe r o r p e rm ittin g th e u se o r e n jo y m e n t o f an y in te lle c tu a l

p ro p e rty rig h t;
(d) d e v e lo p m e n t, d esig n , p ro g ra m m in g , cu sto m isa tio n , ad ap ta tio n , u p g ra d a tio n ,

e n h a n c e m e n t, im p le m e n ta tio n o f in fo rm a tio n te c h n o lo g y so ftw are;
(e) a g re e in g to th e o b lig a tio n to re fra in fro m an act, o r to to le ra te an a ct o r a

situ atio n , o r to d o an act; an d
( f tra n sfe r o f th e rig h t to u se an y g o o d s fo r an y p u rp o s e (w h e th e r o r n o t fo r a

sp e c ifie d p e rio d ) fo r c ash , d e fe rre d p a y m e n t o r o th e r v a lu a b le c o n sid eratio n .
6 . C o m p o site su p p ly
T h e fo llo w in g c o m p o site su p p lies shall b e tre a te d as a su p p ly o f serv ices, n a m e ly :—
(a ) w o rk s c o n tra c t as d e fin e d in c la u se (1 1 9 ) o f se c tio n 2; an d
(b) supply, b y w a y o f o r as p a rt o f an y serv ic e o r in an y o th e r m a n n e r w h atso ev er,

o f g o o d s, b e in g fo o d o r an y o th e r a rtic le fo r h u m a n c o n su m p tio n o r an y d rin k (o th e r
th a n a lc o h o lic liq u o r fo r h u m a n c o n su m p tio n ), w h e re su c h su p p ly o r se rv ic e is fo r
cash , d e fe rre d p a y m e n t o r o th e r v a lu a b le c o n sid eratio n .
7. S u p p ly o f G o o d s
T h e fo llo w in g shall b e tre a te d as su p p ly o f g o o d s, n a m e ly :—
S u p p ly o f g o o d s b y an y u n in c o rp o ra te d a sso c ia tio n o r b o d y o f p e rso n s to a m e m b e r

th e re o f fo r cash , d e fe rre d p a y m e n t o r o th e r v a lu a b le c o n sid eratio n .
SCHEDULE m
[See section 7]
A c t iv it ie s o r t r a n s a c t io n s w h ic h s h a l l b e t r e a t e d n e it h e r as a s u p p l y o f g o o d s
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 of funeral, 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.
Explanation.—For the purposes of paragraph 2, the term "court" includes District
Court, High Court and Supreme Court.
DR. G. NARAYANA RAJU

Secretary to the Govt. o f India.
UPLOADED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI-110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054.
Digitally signed byMANOJ

MANOJ KUMAR KUMAR
GMGIPMRND—503GI—12-04-2017. Date: 2017.04.13 13:02:15 +05'30'

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1° 12] ub fnY#, C/OTj, v i y 12, 2017/P= 22, 1939 (T d )

b i httxe f*R i w nh t d g f t i l fd ; g v y x i d y u d e t^ ttt i d !

MINISTRY OF LAW AND JUSTICE

THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

(15) “authorised representative” means the representative as referred to in

(29) “competent authority” means such authority as may be notified by the

(33) “continuous supply of services” means a supply of services which is

(68) “job work” means any treatment or process undertaken by a person on

tax, integrated tax and cess;

(a) Principal Chief Commissioners of Central Tax or Principal Directors General of

(e) Additional Commissioners of Central Tax or Additional Directors of

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

(a) production or manufacture of goods;

(2) A re g iste re d p e rso n p a y in g ta x u n d e r th e p ro v isio n s o f se c tio n 10 shall, fo r e a c h

(3) E v e ry re g iste re d p e rso n re q u ire d to d e d u c t ta x at so u rce u n d e r th e p ro v isio n s o f

(4) E v e ry ta x a b le p e rs o n re g iste re d as an In p u t S e rv ic e D istrib u to r shall, fo r e v ery

(5) E v e ry re g iste re d n o n -re sid e n t ta x a b le p e rso n shall, fo r e v e ry c a le n d a r m o n th o r

(6 ) T h e C o m m issio n e r m ay, fo r re a so n s to b e re c o rd e d in w ritin g , b y n o tific a tio n ,

P ro v id e d th a t an y e x te n sio n o f tim e lim it n o tifie d b y th e C o m m issio n e r o f S tate ta x o r

(7) E v e ry re g iste re d p e rso n , w h o is re q u ire d to fu rn ish a re tu rn u n d e r su b -se c tio n (1)

(8) E v e ry re g iste re d p e rs o n w h o is re q u ire d to fu rn ish a re tu rn u n d e r su b -se c tio n (1) o r

P ro v id e d th a t n o su c h re c tific a tio n o f an y o m issio n o r in c o rre c t p a rtic u la rs shall b e

(1 0 ) A re g iste re d p e rso n sh all n o t b e a llo w e d to fu rn ish a re tu rn fo r a ta x p e rio d if th e

(a) a department or establishm ent of the Central Government or State

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

Inspection , search , seizure and arrest

(vi) any other relevant record,

( f Notwithstanding anything contained in the Code of Criminal Procedure,

80. O n an a p p lic a tio n file d b y a ta x a b le p e rso n , th e C o m m issio n e r m ay, fo r re a so n s to Payment of

P ro v id e d th a t w h e re th e re is d e fa u lt in p a y m e n t o f an y o n e in sta lm e n t o n its d u e d ate,

81. W h e re a p e rso n , a fte r an y a m o u n t h as b e c o m e d u e fro m h im , cre a te s a c h a rg e o n o r Transfer of

P ro v id e d th at, su c h c h a rg e o r tra n sfe r sh all n o t b e v o id if it is m a d e fo r a d eq u ate

82. N o tw ith sta n d in g a n y th in g to th e c o n tra ry c o n ta in e d in an y la w fo r th e tim e b e in g Tax to be

83. (1) W h e re d u rin g th e p e n d e n c y o f an y p ro c e e d in g s u n d e r se c tio n 6 2 o r se c tio n 63 Provisional

(2) E v e ry su c h p ro v isio n a l a tta c h m e n t sh all c e a se to h a v e e ffe c t a fte r th e ex p iry o f a

84. W h e re an y n o tic e o f d e m a n d in re sp e c t o f an y tax , p en alty , in te re st o r an y o th e r Continuation

(b) w h e re su c h G o v e rn m e n t d u es are re d u c e d in su c h ap p eal, re v isio n o r in o th e r

(i) it sh all n o t b e n e c e ssa ry fo r th e C o m m issio n e r to se rv e u p o n th e tax ab le

(ii) th e C o m m issio n e r shall g iv e in tim a tio n o f su c h re d u c tio n to h im a n d to

( iii ) an y re c o v e ry p ro c e e d in g s in itia te d o n th e b asis o f th e d e m a n d se rv ed

Liability to pay in certain cases

Explanation.—For the purposes of this Chapter,—

95. In this Chapter, unless the context otherwise requires,— Definitions.

Appeals and revision

P ro v id e d th a t an o rd e r e n h a n c in g an y fe e o r p e n a lty o r fin e in lie u o f c o n fisc a tio n o r

P ro v id e d fu rth e r th a t w h e re th e A p p e lla te A u th o rity is o f th e o p in io n th a t an y ta x has

(12) T h e o rd e r o f th e A p p e lla te A u th o rity d isp o sin g o f th e ap p eal sh all b e in w ritin g

(1 3 ) T h e A p p e lla te A u th o rity shall, w h e re it is p o ss ib le to d o so, h e a r a n d d e c id e e v ery

P ro v id e d th a t w h e re th e issu a n c e o f o rd e r is sta y e d b y an o rd e r o f a c o u rt o r T rib u n al,

(1 4 ) O n d isp o sa l o f th e ap p eal, th e A p p e lla te A u th o rity shall c o m m u n ic a te th e o rd e r

(1 5 ) A c o p y o f th e o rd e r p a ss e d b y th e A p p e lla te A u th o rity sh all also b e sen t to th e

108. (1) S u b je c t to th e p ro v isio n s o f se c tio n 121 a n d an y ru le s m a d e th ereu n d er,Powers

(2) T h e R e v isio n a l A u th o rity shall n o t e x e rc ise an y p o w e r u n d e r su b -se c tio n (1), if—

(a ) th e o rd e r h as b e e n su b je c t to an ap p eal u n d e r se c tio n 107 o r se c tio n 112 o r

(b) th e p e rio d sp e c ifie d u n d e r su b -se c tio n (2) o f se c tio n 107 h as n o t y e t e x p ire d

(c) th e o rd e r h as a lread y b e e n ta k e n fo r re v isio n u n d e r th is se c tio n at an e a rlie r

(d) th e o rd e r h as b e e n p a ss e d in e x e rc ise o f th e p o w e rs u n d e r su b -se c tio n (1):

P ro v id e d th a t th e R e v isio n a l A u th o rity m a y p a ss an o rd e r u n d e r su b -se c tio n (1) o n

(5) E v e ry o rd e r p a ss e d in re v isio n u n d e r su b -se c tio n (1) shall, su b je c t to th e p ro v isio n s

(4) If th e sa id d e c isio n o r o rd e r in v o lv e s an is su e o n w h ic h th e A p p e lla te T rib u n a l o r

(5) W h e re th e issu a n c e o f an o rd e r u n d e r su b -se c tio n (1) is sta y e d b y th e o rd e r o f a