THEKERALAGOODSANDSERVI

CESTAX
BILL,
2017

BI
LL

t
omakeapr ovi
sionf
orlevyandcol
lect
ionoftaxoni
ntr
a-St
atesupplyofgoodsor
ser
vicesorbothbytheStateofKeralaandthemat
tersconnect
edtherewi
thor
i
ncident
alt
her
eto

BEitenactedbyLegi
slat
ureofKer
alai
ntheSi
xty-
eight
hYearoft
heRepubl
icofI
ndi
a
asfol
lows:-

CHAPTERI
PRELI
MINARY

1.(
1)Thi
sActmaybecal
ledt
heKer
alaGoodsandSer
vicesTaxAct
,2017.

(
2)I
text
endst
othewhol
eoft
heKer
ala

Itshallcomeintoforceonsuchdat eastheStat
eGovernmentmay,bynoti
fi
cati
onin
theOffi
cialGazet
te,appoint:
Providedthatdi
fferentdatesmaybeappoi nt
edfordif
fer
entpr
ovi
sionsoft
hisActand
anyreferenceinanysuchpr ovisiontot
hecommencementoft hi
sActshal
lbeconstr
ued
asar ef
erencetothecomi ngi nt
of or
ceoft
hatprovi
sion.

2.Inthi
sAct,
unlessthecont
extot
herwiser
equi
res,-
-
(
1)“act
ionabl
ec l
aim”s hal
lhavethes ameme aningasassi
gnedt
oiti
nsect
ion3
oftheTransferofPropert
yAc t
,1882;

(
2)“addr
essofdeli
ver
y”me anstheaddr
essofther
ecipientofgoodsorser
vices
orbothi
ndicat
edont hetaxi
nvoicei
ssuedbyaregist
e r
edpersonf
ordeli
very
ofsuchgoodsorservi
cesorbot
h;

(
3)“addressonr ecord”me anstheaddr essoft herecipi
entasav ai
labl
ei nthe
recordsoft hesuppl i
er;
(
4)“adjudicati
ngauthor i
ty”me ansanyaut horit
y,appoi
ntedorauthori
sedtopas s
anyor de rordecisionunde rthisAct,butdoe snotincl
udetheCommi s si
oner
,
Re vi
sionalAuthorit
y ,theAuthorit
yforAdv anceRuli
ng,theAppell
ateAuthori
ty
forAdv anceRuling,t heAppe l
lat
eAut hor
it
yandt heAppell
ateTri
bunal;
(
5)“agent”meansape r
son,incl
udi
ngaf actor
,broker
,commissi
onagent,ar
hat
ia,
delc r
edereagent
,anauc ti
oneeroranyot herme r
cant
il
eage nt
,bywhatever
namec al
led,whocarri
esont hebus i
nessofs upplyorrecei
ptofgoodsor
servi
cesorbothonbe hal
fofanot
her;

(
6)“aggregatet ur
nov er
”me ans the aggregatev al
ue ofallt axablesupplies
(excl
udingthev alueofinwards uppli
esonwhi chtaxispayablebyape rsonon
rever
sec hargebas is)
,ex empts uppli
es,expor
tsofgoodsors ervi
cesorbot h
and inter-
States uppl
ies ofpe rsons having t
he same Pe r
mane ntAc count
Numbe r
,tobec omputedonal lIndiabasisbutexcl
udesce nt
raltax,St
atetax,
Unionterri
torytax,i
ntegrat
edtaxandc ess;

(7)“agriculturist
” me ans an i ndivi
dualor a Hindu Undivi
ded Family who
unde rtak escult
ivati
onofl and–
(a)
byownl abour,or
(b)
byt helabouroff amily,or
(c)byser vant sonwagespayabl eincashorkindorbyhir
edlabourunderper
sonal
supervisi
onort hepersonalsupervi
sionofanymemberoft
hef
amil
y;

(
8)“Appel
lat
e Aut
hori
ty”means an aut
hor
it
yappoi
nted oraut
hor
isedt
o hear
appeal
sasrefer
redtoi
nsect
ion107;

(
9)"
Appe l
lat
eTr i
bunal"me anstheGoodsandSer
vicesTaxAppe l
lat
eTri
bunal
const
it
utedunde rsect
ion¬¬109;
(
10) “appoint
edday ”me ansthedateonwhi
cht
hepr ovi
sionsoft
hisActshal
l
comeintoforce;

(
11) “assessment
”me ans det
e r
minati
on oftax l
iabil
i
ty underthi
s Actand
i
ncludesself
-assessment,r
e-assessment
,provi
sionalassessment
,summary
assessmentandbestjudgementassessment
;

(
12) "associ
atedent
erpri
ses"shal
lhavethesamemeani
ngasassi
gnedt
oiti
n
sect
ion92AoftheIncome-taxAct
,1961;

(
13) “ audi t
”me anst hee xaminat
ionofr ecor
ds,returnsandot herdoc ume nts
maint ainedorf urnishedbyther egi
ster
edpe r
sonunde rthi
sAc torther ules
madet he r
eunderorunde ranyotherlawfortheti
mebe inginf orcetove r
if
yt he
correc t
ne ssoft urnoverdeclar
ed,taxespaid,refundc lai
me dandi nputt ax
creditav ail
ed,andt oassesshiscompl i
ancewiththepr ovi
sionsoft hisAc tor
t
her ule smadet he r
eunder;
(
14) “aut
hori
sedbank”shal
lmeanabankorabranchofabankauthor
isedby
t
heCe nt
ralGover
nmenttocol
lectt
het
axoranyot
heramountpayabl
eunder
t
hisAct;

(
15) “authori
s edrepr
e sent
ati
ve”me anstherepr
esent
ati
veasr
e f
err
edtounde r
sect
ion116;
(
16) “Board”me anstheCe ntr
alBoardofExci
seandCus t
omsconst
it
utedunder
t
heCe ntralBoardsofRe venueAct,1963;

(
17) “
busi
ness”i
ncl
udes––

(
a)anytrade,commerce,manufact
ure,pr
ofessi
on,vocat
ion,advent
ure,wageror
anyothersi
mil
aracti
vit
y,whet
herornotiti
sforapecuni
arybenefi
t;

(b)anyact
ivi
tyort
ransact
ioni
nconnect
ionwi
thori
nci
dent
aloranci
ll
aryt
osub-
cl
ause(a)
;

(c)anyacti
vit
yortransact
ioninthenatureofsub-
clause(a)
,whet
herornott
her
e
i
svolume,f
requency,
continui
tyorregul
ari
tyofsuchtr
ansacti
on;

(
d)supply oracqui
sit
ion ofgoods i
ncl
udi
ng capi
talgoods and ser
vices i
n
connect
ionwi
thcommencementorclosur
eofbusi
ness;

(
e)provi
sionbyaclub,associat
ion,soci
ety,
oranysuchbody(
forasubscr
ipt
ionor
anyotherconsi
derat
ion)oft
hef aci
li
ti
esorbenefit
stoi
tsmembers;

(
f)admi
ssi
on,
foraconsi
der
ati
on, sonst
ofper oanypr
emi
ses;

(
g)servi
cessuppli
edbyaper sonast hehol
derofanoffi
cewhichhasbeen
accept
edbyhiminthecour
seorf
urther
anceofhi
str
ade,
prof
essi
onorvocat
ion;

(h)ser
vicesprovi
dedbyar
acecl
ubbywayoft
otal
isat
ororal
icencet
obook
makeri
nsuchclub;and

(
i)any act
ivi
ty ort r
ansact
ion under
taken by the Cent
ralGovernment,a St
ate
Gover
nmentoranylocalaut
hori
tyinwhichtheyareengagedaspubl
icauthor
it
ies;

(
18) “businessv er
ti
cal
”me ansadis t
inguishabl
ec omponentofane nt
erpr
ise
t
hatise ngagedinthes upplyofindivi
dualgoodsors er
v i
cesoragroupof
r
elat
edgoodsors er
viceswhichissubjectt
or i
sksandret
urnsthatar
edi
ffer
ent
f
rom thos eoft
heotherbus i
nessvert
ical
s.

Expl
anati
on.
––Forthepurposesofthiscl
ause,fact
orst
hatshoul
dbeconsi
der
edi
n
det
ermini
ngwhethergoodsorser
vicesar
erel
atedincl
ude––

(
a)t
henat
ureoft
hegoodsorser
vices;

(
b)t
henat
ureoft
hepr
oduct
ionpr
ocesses;
 (
c)t
het
ypeorcl
assofcust
omer
sfort
hegoodsorser
vices;

(
d)t
hemet
hodsusedt
odi
str
ibut
ethegoodsorsuppl
yofser
vices;and

(e)thenatur
eofregulat
oryenvi
ronment(
wher
everappl
icabl
e),
i
ncl
udi
ngbanki
ng,
i
nsuranceorpubl
icut
il
it
ies;

(
19) “capi
talgoods”meansgoods,theval
ueofwhichisc api
tal
isedi
nthebooks
ofaccountofthepersonclai
mingtheinputt
axc r
editandwhi chareusedor
i
ntendedtobeuse di
nthecourseorfur
ther
anceofbusiness;

(
20) “c asualtaxable per
son”me ans a per
son who oc casi
onall
y under
takes
t
rans acti
onsinvolvingsuppl
yofgoodsors ervi
cesorbot hinthec our
s eor
f
urthe r
anceofbus iness,whet
heraspr
inci
pal,
age ntorinanyothercapaci
ty,
in
t
het axablet
e r
rit
orywhe r
ehehasnof i
xedplaceofbus i
ness;

(
21) “cent
ralt
ax”meansthecent
ralgoodsandser
vicest
axl
evi
edundersect
ion
9oftheCentr
alGoodsandServi
cesTaxAct;

(
22) “cess”s hal
lhav ethes ameme aningasas si
gne dtoitintheGoodsand
Servi
cesTax( Compe nsat
iontoStat
es)Act;
(
23) “charter
edac countant
”me ansac har
ter
edac countantasdef
inedinclause
(b)ofsub-sect
ion(1)ofsecti
on2oftheCharter
edAc countant
sAc t
,1949;

(
24) “Commissi
oner
”me anstheCommi ssi
onerofStatetaxappointed under
sect
ion3;
(
25) “Commissi
onerinthe Boar
d”me ans the Commissi
onerref
e r
redt oin
sect
ion168oft
heCent
ralGoodsandServi
cesTaxAct;

(
26) “commonpor t
al”me ansthecommongoodsandser
vicest
axel
ect
roni
c
por
talr
efer
redt
oins ect
ion146;

(
27) “commonwor ki
ngdays”shal
lme ansuchdaysinsuccessi
onwhi
char
enot
decl
aredasgazet
tedhol
idaysbytheCentr
alGover
nme ntort
heGover
nmentof
Ker
ala;

(
28) "companysecret
ary"meansacompanysecr
etaryasdef
inedi
nc l
ause(
c)of
sub-
sect
ion(1)ofsect
ion2oftheCompanySecr
etari
esAct
,1980;

(
29) “
c ompetentaut
hor
it
y”meanssuch aut
hor
it
yasmaybenot
if
ied byt
he
Government
;

(
30) “compositesupply”meansas upplymadebyat axabl
epersontoar eci
pient
consi
sti
ngoft woormor etaxabl
es uppl
iesofgoodsorservi
cesorboth,orany
combinat
ionthereof,whi
char enatural
lybundl
edands uppl
iedinconjuncti
on
wit
he achotherintheordi
narycour seofbusi
ness,oneofwhichisapr i
ncipal
suppl
y;

I
ll
ust
rat
ion:Wher
egoodsar
epackedandt
ranspor
tedwi
thi
nsur
ance,t
hesuppl
yof
goods,packi
ngmat eri
als,t
ranspor
tandi
nsur
ancei
sacomposit
esuppl
yandsupplyof
goodsisaprinci
palsupply.
(31) “consider
ation”i nr el
ati
on t
othe suppl
y ofgoods orser
vices orboth
i
ncludes––

(a)anypaymentmadeort obemade, whetheri

nmoneyorother
wise,i
nrespectof,
i
nr esponset o,orfort heinducementof ,thesupplyofgoodsorservi
cesorbot h,
whetherbyther eci
pientorbyanyot herpersonbutshal
lnoti
ncl
udeanysubsi
dygiven
bytheCentralGovernmentoraSt at
eGover nment;

(b)themonetaryvalueofanyactorforbearance,inrespectof,inresponseto,or
forthei nducementof,thesupplyofgoodsorser vi
cesorbot h,whet herbyt he
reci
pientorbyanyotherpersonbutshal
lnotincludeanysubsi dygivenbyt heCentral
GovernmentoraSt at
eGover nment
:

Provi
dedthatadepositgi
veninrespectofthesuppl
yofgoodsorser
vicesorboth
shallnotbeconsi
deredaspaymentmadef orsuchsuppl
yunl
essthesuppli
erappl
ies
suchdepositasconsider
ati
onfort
hesaidsuppl y;

(
32) “cont i
nuouss upplyofgoods ”me ansas upplyofgoodswhi chisprovided,
oragree dtobepr ovi
de d,conti
nuouslyoronr ecurrentbasi
s,underac ont
ract,
whetherornotbyme ansofawi re,cabl
e,pipeli
neorot herconduit,andfor
whicht hes uppl
ierinvoicesther eci
pientonar egularorperi
odicbas i
sand
i
ncludess uppl
yofs uc h goods as the Governme ntmay ,subjecttos uch
condit
ions,asitmay ,bynotifi
cati
on,speci
fy;

(
33) “cont i
nuous supply ofs ervi
ces”me ans a supply ofs er
vices whichis
provi
de d,oragr
eedt obepr ovided,conti
nuouslyoronr ecurr
entbas i
s,undera
contr
ac t,for a period e xceedi
ng t hr
e e months with pe r
iodi
c pay ment
obli
gationsandi ncl
ude ss upplyofs uchs er
vicesast heGov ernme ntmay,
subjecttosuchconditions,
asi tmay,bynot i
fi
cati
on,specif
y;

(
34) “
conveyance”i
ncl
udesavessel
,anai
rcr
aftandavehi
cle;

(
35) “costaccount
ant”meansac ostaccount
antasde f
inedi
nclause(
c)ofsub-
sect
ion(1)ofsect
ion2oftheCostandWor ksAccount
antsAct
,1959;

(
36) “Counci
l”meanst
heGoodsandSer
vicesTaxCounci
lest
abl
i
s hedunder
ar
ti
cle279Aoft
heConst
it
uti
on;

(
37) “credi
tnote”me ansadocumenti
ssuedbyar
egi
ster
ed per
sonundersub-
sect
ion(1)ofsect
ion34;

(
38) “debi
tnot
e”me ansadocumenti
ssuedbyar
egi
ster
edper
sonundersub-
sect
ion(
3)ofsect
ion34;

(
39) “deemedexpor
ts”meanssuchsuppl
iesofgoodsasmaybenot
if
iedunder
sect
ion147;
(
40) “desi
gnatedaut
hor
it
y”meanssuchaut
hor
it
yasmaybenot
if
iedbyt
he
Commissioner
;

(
41) “ document”i
ncl
udeswri
tt
enorprint
edrecor
dofanys or
tande l
ect
roni
c
recordasde f
inedi
ncl
ause(t
)ofsect
ion2oftheInf
ormat
ionTechnol
ogyAct,
2000;

(
42) “dr
awback”inrelat
iont oanygoodsmanuf act
uredinIndi
aande xpor
ted,
meansther
e bat
eofdut y,t
axorc esschargeabl
eonanyimportedinput
soron
anydomest
icinput
sori nputser
vicesusedinthemanufact
ureofsuchgoods ;

(
43) “elect
roni
ccashledger
”meanst
heel
ect
roni
ccashl
edgerr
efer
redt
oinsub-
sect
ion(1)ofsect
ion49;

(
44) “
elect
roniccomme r
ce”me anst hesupplyofgoodsorser
vicesorbot
h,
i
ncl
udi
ngdi gi
talpr
oduct
soverdigi
talorel
ect
roni
cnet
work;

(
45) “el
ect
roniccomme rceoper
ator”meansanypersonwhoowns ,operat
e sor
managesdigi
talorel
ect
roni
cfacil
it
yorplat
for
mforelect
roni
ccomme r
ce ;

(
46) “el
ect
roni
ccredi
tledger
”meanst
heel
ect
roni
ccr
edi
tledgerr
efer
redt
oin
sub-
sect
ion(
2)ofsect
ion49;

(
47) “exempts uppl
y”me anss uppl
yofanygoodsors er
vicesorbothwhi ch
att
ract
snilrateoftaxorwhichmaybewhollyexemptf
rom taxundersect
ion
11,orunde rsecti
on6oft heInt
egr
atedGoodsandSe r
vicesTaxAc t
,and
i
ncludesnon-t
axablesuppl
y;

(
48) “ existi
ngl aw”me ansanyl aw,not i
fi
cation,or der,rul
eorr egul
ati
onr elati
ng
tole vyandc ollecti
onofdut yort axongoodsors ervi
c esorbot hpas se dor
madebe f
oret hec omme nc eme ntoft hisAc tbyt heLe gislatureoranyAut horit
y
orpe r
s on hav i
ng t hepowe rt o mak es uchl aw,not i
fi
c ati
on,order,ruleor
regulation;
(
49) “ fami l
y”me ans ,
—
(i
) t hes pous eandc hildrenoft hepe rson, and
(i
i) t hepar ents,gr and-par ent
s ,brothersands istersoft hepe r
sonifthe yare
whol l
yormai nl ydepe nde ntont hes aidpe rson;
(
50) “ fi
xe de stabli
shme nt”me ansapl ace( othert hant her egi
ster
edpl ac eof
busines s)whi chi sc harac t
erisedbyas uf f
icientde greeofpe rmanenc eand
suit
abl es tructurei nt erms ofhuman and t e chnicalr esourcestos upply
services ,
ort orece i
veandus es ervicesforitsownne eds;
(
51) “ Fund”me anst heCons ume rWe l
fareFunde stablishedunde rsecti
on57;

(
52) “goods’
’me ans ever
yk i
nd ofmov abl
e proper
tyot hert
han mone yand
secur
it
ies butincl
udes act
ionabl
ec l
aim,growing cr
ops,grass and t
hings
att
achedtoorf or
mingpartofthelandwhichareagreedtobeseve r
edbe f
ore
suppl
yorunde racont
ractofsuppl
y;
(
53) “Gover
nme nt
”me anst
heGover
nme ntofKer
ala;
(
54) “GoodsandSe r
vicesTax(
Compens at
iont
oSt at
es)Act
”meanst
heGoods
andServi
cesTax(Compensat
iont
oStates)Act
,2017;

(
55) “goodsands er
vicestaxpracti
ti
oner
"me ansanyper
sonwhohasbeen
approvedundersect
ion48toactassuchpract
it
ioner
;

(
56) "India"me ans the terri
tor
y ofI ndi
a as refer
redtoi n art
icl
e 1 oft he
Cons t
it
ution,i
tster
rit
orialwaters,seabedandsub-soi
lunderl
yings uchwaters,
conti
ne nt
als hel
f,exclusiveeconomi cz oneoranyot hermar it
imez oneas
ref
erredtoi nt
heTe r
rit
or i
alWaters,Cont
inent
alShelf
,Excl
usi
veEc onomi cZone
andot herMar i
ti
meZone sAc t
,1976,andt heairspaceabovei t
st er
ri
toryand
ter
ri
torialwater
s;

(
57) “I
ntegr
atedGoodsandSer
vicesTaxAct
”meanst
heI
ntegr
atedGoodsand
Ser
vicesTaxAct
,2017;

(
58) “
int
egr
atedtax”meanst
heintegr
atedgoodsandser
vicest
axl
evi
edunder
t
heInt
egr
atedGoodsandSer
vicesTaxAct
;

(
59) “i
nput
”me ansanygoodsotherthancapi
talgoodsusedori
ntendedt
obe
usedbyasuppli
eri
nthecour
seorfurt
her
anceofbus i
ness;

(
60) “i
nputser
vice”meansanyservi
ceusedori
ntendedt
obeusedbyasuppl
i
e r
i
nthecour
seorf ur
ther
anceofbusi
ness;

(
61) “InputSe r
viceDist
ri
butor”me ansan of f
iceoft hes uppl
ierofgoodsor
servi
cesorbot hwhichrecei
vestaxinvoicesissuedunde rsect
ion31t owards
the recei
ptofi nputservi
ces and issues a prescri
bed docume ntf orthe
purposesofdi st
ri
but
ingthec r
editofc entr
altax,Statetax,i
ntegr
at edtaxor
Unionterri
tor
ytaxpaidont hesaidservicestoas uppli
eroftaxabl
egoodsor
servi
cesorbot hhavi
ngthes amePe rmane ntAc countNumbe rast hatofthe
sai
dof fi
ce;

(
62) “ inputtax”inrel
ationt oar egister
e dperson,me ansthec ent
raltax,St
atetax,
i
nte gratedtaxorUni ont err
it
oryt axc har
ge donanys upplyofgoodsors ervi
ces
orbot hmadet ohim andi nclude s–
(a)theintegrat
edgoodsandser vicestaxchargedoni mportofgoods;
(b)thet axpayabl
eundert heprovisionsofsub-secti
ons(3)and(4)ofsecti
on9;
(c)thet axpayableundert heprovisi
onsofsub- sect
ions(3)and(4)ofsect
ion5ofthe
I
ntegratedGoodsandSer vicesTaxAct ;or
(
d)t
hetaxpayableunderthepr
ovi
sionsofsub-
sect
ions(
3)and(
4)ofsect
ion9of
t
heCent
ralGoodsandServi
cesTaxAct
,

butdoesnoti
ncl
udet
het
axpai
dundert
hecomposi
ti
onl
evy;

(
63) “
inputt
axcr
edi
t”meanst
hecr
edi
tofi
nputt
ax;
(
64) “
int
ra-
Stat
es uppl
yofgoods”shal
lhavet
hes amemeaningasassi
gnedt
oit
i
nsect
ion8oftheIntegr
atedGoodsandSer
vicesTaxAct
;

(
65) “i
ntr
a-St
atesuppl
yofservi
ces”shal
lhavet
hes amemeaningasassi
gnedt
o
i
tinsect
ion8oftheI
ntegr
atedGoodsandSe r
vicesTaxAct
;

(
66) “
invoi
ce”or“
taxi
nvoi
ce”meanst
het
axi
nvoi
cer
efer
redt
oinsect
ion31;

(
67) “i
nwards upply”inrel
ati
ontoape rson,shal
lme anrecei
ptofgoodsor
ser
vicesorbothwhe t
herbypur
chase,acqui
sit
ionoranyot
herme ans,wi
thor
wit
houtconsi
derati
on;

(
68) “jobwor k”meansanyt r
eatmentorprocessunder
takenbyape r
sonon
goodsbelongingtoanot
he rregi
ster
edper
sonandtheex pr
essi
on“
jobwor
ker
”
shal
l beconstr
uedaccor
dingly;

(
69) “
local
aut
hor
it
y”means––

(
a)a“
Panchayat
”asdef
inedi
ncl
ause(
d)ofar
ti
cle243oft
heConst
it
uti
on;

(
b)a“
Muni
cipal
it
y”asdef
inedi
ncl
ause(
e)ofar
ti
cle243Poft
heConst
it
uti
on;

(c)aMunici
palCommi tt
ee,aZill
aParishad,aDist
ri
ctBoar d,and anyot
her
aut
hori
tyl
egal
lyenti
tl
edto,orentr
ustedbyt heCent
ralGovernmentoranyState
Gover
nmentwi
ththecont
rolormanagementofamunici
palorlocalf
und;

(
d)aCant
onmentBoar
dasdef
inedi
nsect
ion3oft
heCant
onment
sAct
,2006;

(e)aRegi
onalCounci
loraDi
str
ictCounci
lconst
it
utedundert
heSi
xthSchedul
e
t
otheConsti
tut
ion;

(
f)aDevel
opmentBoar
dconst
it
utedunderar
ti
cle371oft
heConst
it
uti
on;or

(
g)aRegi
onalCounci
lconst
it
utedunderar
ti
cle371Aoft
heConst
it
uti
on;

(70) “ locati
onoft herecipientofserv i
ces”me ans ,
-
(
a)whe reas upplyisre cei
vedatapl aceofbus inessforwhi chther egistr
ati
on
hasbe enobtai ned,theloc ati
onofs uc hplaceofbus iness;
(
b)whe reas upplyi sre cei
vedatapl ac eot herthant heplaceofbus inessfor
whic hr egistrati
on has be en obtained( af i
xe de s t
abli
shme nte l
se whe re)
,the
l
oc ationofs uc hf i
xede stabli
shme nt;
(
c )whe reas upplyisr eceivedatmor et hanonee st
abli
shme nt,whe therthe
placeofbus ine ssorfixede stabl
ishme nt, t
hel ocationoft heestabli
shme ntmos t
directlyconce rne dwithther ecei
ptoft hes upply ;
and
(
d)i nabs enc eofs uchpl aces,t
hel ocati
onoft heus ualplaceofresidenc eofthe
recipient;

(
71) “l
ocati
onoft
hesuppl
i
e rofser
vices”means,
-
(
a)whereasuppl
yismadef r
om aplac eofbusi
nessf
orwhi
cht
her
egi
str
ati
on
hasbe enobtai ned,theloc ati
onofs uc hplaceofbus i
ne ss;
(
b)whe reas upplyi smadef rom apl aceot herthant heplaceofbus i
nessfor
whic hregistrati
on has be en obt ained( af ixede s t
abli
shme nte l
se whe re)
,the
l
oc ati
onofs uc hf i
xede stabli
shme nt;
(
c)whe reas upplyismadef rom mor et hanonee st
abli
shme nt
,whe therthe
placeofbus ine ssorf ixede stablishme nt,t
hel ocati
onoft hee stabl
ishme ntmost
direct
lyconce rne dwiththepr ov i
s i
onsoft hes upply;and
(
d)inabs enc eofs uchpl aces ,t
hel ocati
onoft heus ualplaceofreside nceofthe
supplier
;
(72) “manuf ac ture”me anspr oce ssi
ngofr aw mat e r
ialorinputsinanymanne r
thatresul
tsi ne me rgenc eofane w produc thavi
ngadi st
inctname ,charact
er
andus eandt heterm“ manuf acturer”shal
l becons tr
uedac cor
dingly;

(
73) “ marketval
ue”shal
lme antheful
lamountwhicharecipi
entofas upplyis
requir
edtopayi nor
dertoobtai
nthegoodsorser
vicesorbothofli
k eki
ndand
qualit
yatoraboutthesamet i
meandatt hesamecomme rci
allevelwherethe
reci
pientandthesuppl
ierar
enotrel
ated;

(74) “ mi xedsupply ”me anstwoormor ei ndi

v i
dualsuppliesofgoodsors ervi
ces,
oranyc ombi nati
ont hereof,madei nc onjuncti
onwi the achot he rbyat axable
personforas i
ngl epr icewhe r
es uc hs upplydoesnotc onstit
uteac ompos ite
supply.
Il
lustrat
ion:A supplyofapackageconsi st
ingofcannedf oods,sweet s,chocolat
es,
cakes,dr yfrui
ts,aerateddr inksandfruitjuiceswhensuppl i
edf orasi nglepri
cei sa
mi xedsupply.Eachoft hesei t
emscanbesuppl iedseparat
elyandi snotdependenton
anyot her.I
tshallnotbeami xedsupplyiftheseitemsaresuppliedsepar atel
y;

(
75) “ mone y”me anst heIndianl egaltenderoranyf orei
gnc urr
e ncy,cheque,
promiss or
ynot e,billofe xchange,letterofc r
edit
,draft,payor der,t
ravel
ler
cheque ,mone yorde r
,postalore lect
ronicremitt
anceoranyot he rinst
rume nt
recognizedbyt heRe ser
veBankofI ndiawhe nusedasac onsiderati
ontos et
tle
anobl i
gationore xchangewithI ndi
anle galt
enderofanothe rdenomi nati
onbut
shallnotincl
udeanyc urr
encyt hati
she ldforit
snumi smaticvalue;

(
76) “
motorv ehi
cle”shal
lhavethesameme ani
ngasassi
gnedt
oiti
ncl
ause
(
28)ofsect
ion2oftheMotorVehi
clesAct
,1988;

(
77) “non-resi
dent taxabl
e pe rson” me ans any person who oc casi
onall
y
under
tak estr
ansacti
onsinvolvi
ngs upplyofgoodsorservi
cesorboth,whet
her
asprincipaloragentorinanyot hercapaci
ty,butwhohasnof ixedplaceof
busi
ne ssorresi
denceinIndia;

(
78) “non-t
axabl
esuppl
y’
’meansas uppl
yofgoodsorservi
cesorbot
hwhichis
notlevi
abl
etotaxundert
hisActorundert
heIntegr
atedGoodsandSer
vices
TaxAc t
;
(
79) “non-t
axabl
eter
ri
tor
y”means t
he t
err
it
orywhi
chi
s out
side t
he t
axabl
e
t
err
itor
y;

(
80) “not
if
icat
ion”meansanoti
fi
cationpubl
i
s hedintheOffi
cialGazet
teandt
he
expr
essi
ons‘noti
fy’
and‘
not
if
ied’shall
beconstruedaccor
dingly;

(
81) “otherter
ri
tory”includeste r
ri
tor
iesotherthanthosec ompri
singinaStat
e
andthosereferr
edtoi ns ub-
clauses(a)t
o(e)ofc l
ause(114)
;
(
82) “outputt
ax ”i
nr el
ationtoat axabl
epe r
son,me ansthetaxchargeabl
eunder
thi
sAc tontaxables upplyofgoodsors ervi
cesorbot hmadebyhi m orbyhi
s
agentbutexcl
ude staxpay ablebyhim onreversechar
gebas i
s;

(
83) “outwar
ds upply”i
nr el
ati
ont oataxabl
epe r
son,me anss uppl
yofgoodsor
ser
vicesorbot h,whetherbys al
e,t
ransf
er,bart
er,exchange,li
cence,r
ental
,
l
easeordi sposaloranyot he rmode,madeoragr eedtobemadebys uch
per
soni nt
hec ourseorfur
theranceofbusi
ness;

(
84) “
per
son”i
ncl
udes—

(
a)ani
ndi
vidual
;

(
b)aHi
nduUndi
videdFami
ly;

(
c)acompany;

(
d)af
ir
m;

(
e)aLi
mit
edLi
abi
li
tyPar
tner
shi
p;

(f
)anassoci
ati
onofper
sonsorabodyofi
ndi
vidual
s,whet
heri
ncor
por
atedornot
,
i
nIndi
aoroutsi
deIndi
a;

(
g)anycor
por
ati
onest
abli
shedbyorunderanyCentralAct
,Stat
eActorPr
ovinci
al
ActoraGover
nmentcompanyasdef
inedi
nclause(45)ofsect
ion2oftheCompanies
Act,
2013;

(
h)anybodycor
por
atei
ncor
por
atedbyorundert
hel
awsofacount
ryout
side
I
ndi
a;

(
i)a co-
oper
ati
ve soci
etyr
egi
ster
ed underany l
aw r
elat
ing t
o co-
oper
ati
ve
soci
eti
es;

(
j)al
ocalaut
hor
it
y;

(
k)Cent
ralGover
nmentoraSt
ateGover
nment
;

(
l)soci
etyasdef
inedundert
heSoci
eti
esRegi
str
ati
onAct
,1860;
 (
m)t
rust
;and

(
n)ever
yar
ti
fi
cialj
uri
dicalper
son,
notf
all
i
ngwi
thi
nanyoft
heabove;

(
85) “
placeofbusi
ness”i
ncl
udes––

(
a)a placef r
om wherethebusi nessi
sor di
naril
ycarr
ied on,and i
ncl
udesa
warehouse,agodownoranyot herplacewhereat axabl
epersonstoreshi
sgoods,
suppli
esorrecei
vesgoodsorser
vicesorbot
h;or

(
b)apl
acewher
eat
axabl
eper
sonmai
ntai
nshi
sbooksofaccount
;or

(
c)aplacewhereataxabl
eper
soni
sengagedi
nbusi
nesst
hroughanagent
,by
what
evernamecal
led;

(
86) “
placeofs uppl
y”meanst
hepl aceofsuppl
yasr
efer
redt
oinChapt
erVof
t
heIntegr
atedGoodsandSer
vicesTaxAct
;

(
87) “pr
escri
bed’
’me ans prescr
ibed by r
ules made undert
his Acton t
he
r
ecomme ndati
onsoftheCouncil
;

(
88) “pr
inci
pal
”me ans a person on whose behal
fan agentcar
ri
es on t
he
busi
nessofsuppl
yorrecei
ptofgoodsors er
v i
cesorbot
h;

(
89) “pr
inci
palpl
aceofbusi
ness”meanst heplaceofbusinessspeci
fi
edast
he
pr
inci
palpl
aceofbusi
nessi
nthecert
if
icateofregi
str
ati
on;

(
90) “pr
inci
palsuppl
y”meansthesuppl
yofgoodsors ervi
ceswhichconst
itut
es
t
hepredominantel
ementofacompos i
tesupplyandt
owhi chanyot
he rsuppl
y
f
ormingpartoft
hatcomposi
tesuppl
yisancil
lary;

(
91) “pr
operoff
icer
”inrel
ati
ont oanyfunct
iontobeperf
ormedunderthi
sAc t
,
meanstheCommi ssi
onerortheoff
iceroftheSt
atet
axwhoi sassi
gnedthat
f
uncti
onbytheCommi ssi
oner
;

(
92) “quar
ter”shal
lme an a peri
od comprisi
ng thr
eecons ecut
ivecal
e ndar
months,endi
ngonthelastdayofMarch,June,Sept
emberandDe cemberofa
cal
endaryear
;

(
93) “
reci
pient
”ofsuppl
yofgoodsorser
vicesorbot
h,means—

(
a)wher
eaconsider
ati
onispayabl
eforthesuppl
yofgoodsorser
vicesorbot
h,
t
heper
sonwhoi
sli
abletopayt
hatconsi
der
ation;

(
b)wherenoconsider
ationi
spayablefort
hesuppl
yofgoods,t
hepersontowhom
t
hegoodsaredel
iver
edormadeavailabl
e,ort
owhom possessi
onoruseofthegoods
i
sgi
venormadeavailabl
e;and
 (c)wher
enoconsiderati
onispayabl
efort
hesuppl
yofaser
vice,t
heper
sont
o
whom t
heservi
cei
srendered,

andanyr efer
encet oapersontowhom asuppl yi smadeshallbeconstr
uedasa
ref
erencetotherecipi
entofthesuppl
yandshal lincludeanagentacti
ngassuchon
behalfoft
hereci
pienti
nrel
ati
ontothegoodsorservicesorbot
hsuppl
ied;

(
94) “regi
ster
edper
son”meansaper
sonwhoisr
egist
eredundersect
ion25but
doesnotincl
udeaper
sonhavi
ngaUni
queI
dent
it
yNumbe r.

(
95) “regul
ati
ons”meanst
her egul
ati
onsmadebyt
heCommi
ssi
onerundert
his
Actontherecommendat
ionsoftheCounci
l;

(
96) “
removal
’
’inr
elat
iont
ogoods,
means-

(a)despat
chofthegoodsf ordeli
verybyt
hesuppl
iert
her
eoforbyanyot
her
per
sonacti
ngonbehal
fofsuchsuppl
ier;or

(
b)col
lect
ionofthegoodsbyt
her
eci
pientt
her
eoforbyanyot
herper
sonact
ingon
behal
fofsuchreci
pient
;

(
97) “r
etur
n”me ansanyret
urnpr
escr
ibedorot
herwi
ser
equi
redt
obef
urni
shed
byorundert
hisActort
herul
esmadether
eunder
;

(
98) “rever
sec harge’
’meansthel i
abi
li
tytopayt axbyt hereci
pientofsupplyof
goodsors er
v i
cesorbothinsteadofthesupplierofs uchgoodsors er
vicesor
bothundersub-secti
on(3)ors ub-
sect
ion(4)ofs ect
ion9,orundersub-sect
ion
(3)orsub-secti
on(4)ofs ect
ion5oft heIntegratedGoodsandSe rvi
cesTax
Act;

(
99) “
Re vi
sionalAut hor
it
y”me ans an aut
hori
ty appoi
nted oraut
hor
isedf
or
r
evi
sionofde ci
sionororder
sasr ef
err
edtoinsecti
on108;
(
100)“
Sc hedule”me ansaSchedul
eappendedtothi
sAc t;

(
101)“secur
it
ies”shal
lhavethesameme aningasas si
gnedtoiti
ncl
ause(
h)of
sect
ion2oftheSe cur
it
iesCont
ract
s(Regulat
ion)Act
,1956;

(
102)“ser
vices”me ansany t
hing otherthan goods,moneyand s ecuri
ti
esbut
i
ncludesacti
vit
iesrel
ati
ngt otheuseofmone yori
tsconversi
onbyc ashorby
anyothermode ,from onef orm,curr
encyorde nominat
ion,toanotherfor
m,
cur
rencyordenomi nat
ionforwhichas epar
ateconsi
derat
ionischar
ge d;

(
103)“
Stat
e”meanst
heSt
ateofKer
ala;

(
104)“
Stat
etax”meanst
het
axl
evi
edundert
hisAct
;
(
105)“suppl
ier”i
nrel
ati
ontoanygoodsorservi
cesorbot
h, shallmeantheperson
suppl
yingthesai
dgoodsors ervi
cesorbot
hands hal
lincludeanage ntact
ing
assuchonbe hal
fofs uchsuppl
ieri
nrel
ati
ontothegoodsors er
vicesorboth
suppl
ied;

(
106)“t
ax per
iod’
’means t
he per
iod f
orwhi
cht
he r
etur
nisr
equi
redt
o be
f
urni
shed;

(
107)“t
axableperson”meansapersonwhoi
sregi
ster
edorl
i
abl
etober
egi
ster
ed
undersect
ion22orsecti
on24;

(
108)“
taxablesupply’
’me ansasuppl
yofgoodsorser
vicesorbot
hwhi
chi
s
l
evi
abl
et otaxunderthi
sAct;

(
109)“t
axabl
eter
ri
tor
y’’meanst
het
err
it
oryt
owhi
cht
hepr
ovi
sionsoft
hisAct
appl
y;

(
110)“telecommuni cat
ions er
vice”me anss er
viceofanyde scri
pti
on( i
ncl
uding
el
ectronic mail
,v oi
c e mail
,dat as ervi
ces,audiotexts ervi
ces,v i
deot ext
servi
ces,radi
opagi ngandc el
lularmobi let
e l
ephoneservi
c es)whichismade
avai
labletous er
sbyme ansofanyt ransmissi
onorreceptionofs i
gns,si
gnals,
writ
ing,imagesands oundsori ntel
li
ge nceofanynatur
e ,bywi r
e,radi
o,visual
orothere l
ect
romagne ti
cme ans;

(
111)“ theCe ntralGoodsandSe r
vicesTaxAc t”me anst heCe ntralGoodsand
Se rvi
ce sTaxAc t,
2017;
(
112)“ turnoverinSt ate”or“ turnoveri nUni ont erri
tory”me anst heaggre gate
valueofal ltaxablesuppl i
es(e xcl
udingt hev alueofi nwards uppli
esonwhi ch
taxispay ablebyape r
s ononr eversec hargebas is)ande xempts uppl
iesmade
wi t
hinaSt ateorUni ont er
ri
torybyat ax ablepe rson,exportsofgoodsor
se rvi
cesorbot handi nter-
States uppli
esofgoodsors er
vicesorbot hmade
from t heSt ateorUni on territ
orybyt hes aidtax abl
epe rson bute xcl
ude s
ce ntr
al t
ax,Statetax,
Uni onterri
torytax,i
nte gratedtaxandc ess;

(
113)“
usual
placeofr
esi
dence”means––

(
a)i
ncaseofani
ndi
vidual
,thepl
acewher
eheor
dinar
il
yresi
des;

(
b)inothercases,t
hepl
acewher
etheper
soni
sincor
por
atedorot
her
wisel
egal
ly
consti
tut
ed;

(
114)“
Uni
ont
err
it
ory”meanst
het
err
it
oryof
,-

(
a)theAndamanandNicobarI
slands;
(
b)Lakshadweep;
(
c)DadraandNagarHavel
i;
(
d)DamanandDi u;
(
e)Chandigar
h;and
 (f
)ot herter
rit
or y;
Explanat
ion.-Fort hepurposesofthisAct,eachoftheterr
it
ori
esspecifi
edinsub-
clauses(a)to( f
)shallbeconsider
edtobeasepar ateUnionterr
it
ory.
(
115)“ Unionte r
ritorytax”me anst heUniont err
it
orygoodsands ervicest
axlevied
unde rtheUni onTe r
rit
oryGoodsandSe rvi
cesTaxAc t;
(
116)“ UnionTe rrit
oryGoodsandSe r
v i
cesTaxAc t”me anst heUni onTerri
tory
GoodsandSe r vi
cesTaxAc t,2017;
(
117)“ vali
dr et
ur n”me ansar eturnfurnishedunde rsub-
s ect
ion( 1)ofsect
ion39
onwhi chself-
as sess edtaxhasbe enpai dinful
l;

(
118)“vouc her”me ansaninstrume ntwherether
ei sanobli
gati
ontoac ceptitas
considerat
ionorpar tconsiderati
onforas upplyofgoodsors er
vicesorbot h
andwhe ret hegoodsors ervi
ce sorbothtobes uppl
iedort
heidenti
ti
esoft hei
r
potenti
als uppli
ersaree i
therindicat
edont hei nst
rumentit
sel
fori nr el
ated
docume ntation,
incl
udi
ngt hetermsandc ondit
ionsofuseofsuchinstr
ume nt;

(
119)“wor kscontr
act”me ansac ontr
actforbuil
ding,c onstruct
ion,f
abri
cati
on,
completi
on,erect
ion,install
ati
on,fi
tt
ingout,i
mpr oveme nt,modifi
cat
ion,r
epair
,
maintenance,renovation,al t
erat
ion orc ommis si
oning ofany i mmov able
proper
tywhe rei
nt r
ans ferofpropert
yingoods( whe therasgoodsori nsome
otherf
orm)isinvolvedint heexecuti
onofsuchc ontract;

(
120)wor dsandexpr
e ssi
onsus edandnotde fi
nedinthi
sActbutdef
inedi
nthe
Int
egratedGoodsandSe r
vicesTaxAc t
,theCentr
alGoodsandServi
cesTax
Act,theUnion Ter
ri
toryGoodsand Se rvi
cesTaxAc tand t
heGoodsand
Servi
cesTax(Compe nsati
ontoStates)Actshal
lhavethesame meani
ngsas
assi
gne dtot
heminthos eActs.

CHAPTERII
ADMINI
STRATI
ON

3.TheGovernmentshal
l,bynoti
fi
cat
ion,appoi
ntt
hef
oll
owi
ngcl
assesofof
fi
cer
sfor
thepur
posesofthi
sAct,namel
y:––

(
a)[
Pri
nci
pal
/Chi
ef]Commi
ssi
onerofSt
atet
ax,
(
b)Speci
alCommi
ssi
oner
sofSt
atet
ax,
(
c)Addi
ti
onalCommi
ssi
oner
sofSt
atet
ax,
(
d)Joi
ntCommi
ssi
oner
sofSt
atet
ax,
(
e)Deput
yCommi
ssi
oner
sofSt
atet
ax,
(
f)Assi
stantCommi
ssi
oner
sofSt
atet
ax,
and
(
g)anyot
hercl
assofof
fi
cer
sasi
tmaydeem f
it
:

Pr
ovidedt
hat,t
heofficer
sappoint
edundert
heKeral
aValueAddedTaxAct
,2003
and TheKer
ala Gener
alSal esTaxAct
,1957 shal
lbedeemed to bet
heoffi
cer
s
appoi
ntedundert
hepr
ovi
sionsoft
hisAct
.

4.(
1)TheGover
nmentmay,i
naddi
ti
ont
otheof
fi
cer
sasmaybenot
if
iedunder
sect
ion3,
appoi
ntsuchper
sonsasi
tmayt
hinkf
itt
obet
heof
fi
cer
sundert
hisAct
.

(
2)TheCommi ssioners hallhavej ur
isdicti
onov ert hewholeoft heState,the
Special Commi ssi
one randanAddi tional Commiss i
onerinrespectofallorany
ofthef unc t
ionsas signedtothe m,shal lhavejuri
sdicti
onoverthewhol eofthe
Stat
eorwhe r
et heSt ateGov ernments odirect
s,ov eranylocalareathereof,
andal lot herof fi
cerss hal
l,subjectt os uchconditi
onsasmaybes pecif
ied,
havej urisdi
c t
ionov erthewhol eoft heSt at
eorov ersuchlocalareasast he
Commi ssionermay ,
byor der,
s peci
fy.

5.(1)Subj
ectt
osuchconditionsandli
mit
ati
onsastheCommi ssi
onermayimpose,an
offcerofSt
i atetaxmayexer ci
sethepowersanddischar
getheduti
esconf
erredor
i
mposedonhi m undert
hisAct.

(
2)Anof fi
c erofStat
etaxmaye xer
cisethepowersanddischarget
hedut
ies
conferr
e dorimposedundert
hisAc tonanyotherof
fi
cerofStatet
axwhois
subordinatet
ohim.

(
3)TheCommi ssi
onermay ,subjectt
os uchcondi
ti
onsandl
i
mit
ati
onsasmaybe
speci
fi
edinthi
sbe hal
fbyhi m,delegat
ehi
spowe rst
oanyot
herof
fi
cerwhoi
s
subor
dinat
etohim.

(
4)Notwithstandingany t
hing containedi nt hiss ect
ion,an Appel
lat
e Author
it
y
shallnote xerci
set hepowe rsanddi schargethedut i
esconfer
redorimposed
onanyot he roff
icerofStat
et ax.
6.(1)Withoutprej
udicetotheprovisionsofthisAct,t
heoffi
cer
sappoint
edundert
he
CentralGoodsandServicesTaxActar
eauthori
sedt obethepr
operof
fi
cer
sf ort
he
purposesofthisAct,subjectt
osuchcondit
ionsast heGover
nmentshal
l,onthe
recommendat i
onsoftheCouncil,
bynot
if
icat
ion,speci
fy.
(
2)Subjecttothec onditi
onss pecifiedinthenot if
icati
oni s suedunde rsub-section
(1)
,-
(a)whereanypr ope roffi
ceriss uesanor derunde rthi
sAc t,hes hal
lalsois sue
anorderunde rtheCe ntr
alGoodsandSe rvi
cesTaxAc t,
asaut horisedbyt he
sai
dAc tunde ri
nt i
mationtot hejuri
sdi ct
ionaloffi
c erofc entr
al t
ax;
(b)whe r
eapr operof f
icerunde rtheCe ntr
alGoodsandSe rvicesTaxAc thas
i
niti
atedanypr ocee di
ngsonas ubjectmat ter
,nopr oc eedingss hallbeinit
iated
bytheprope roffi
cerunde rthi
sAc tonthes ames ubjec tmatter.
(
3)Anypr oceedingsforr ecti
fi
cation,appe alandr evisi
on,whe reverapplicable,of
anyorderpas sedbyanof f
icerappointe dunde rthisAc t
,shallnotli
ebe forean
offi
cerappointedunde rtheCe nt r
alGoodsandSe rvi
c esTaxAc t.

CHAPTERIII
LEVYANDCOLLECTI
ONOFTAX

7.(
1)Fort
hepur
posesoft
hisAct
,theexpr
essi
on“
suppl
y”i
ncl
udes––
 (a)allformsofsupplyofgoodsorser vicesorbothsuchassal e,t
ransf
er,bar
ter
,
exchange,l i
cense,r
ental
,lease ordisposalmade oragr eed to be made fora
consider
ationbyapersoni
nthecourseorfurther
anceofbusi
ness;

(b)impor tofser
vicesf
oraconsi
derat
ionwhet
herornoti
nthecourseorf
urt
her
anceof
business;
(c)theact ivi
ti
esspeci
fi
ed i
n Schedul
eI,madeoragr eed t
o bemadewithouta
considerati
on;and

(
d)theact
ivi
ti
est
obet
reat
edassuppl
yofgoodsorsuppl
yofser
vicesasr
efer
redt
o
i
nSchedul
eII.

(
2)Not
wit
hst
andi
nganyt
hingcont
ainedi
nsub-
sect
ion(
1),
––

(
a)act
ivi
ti
esortransactionsspecif
iedi
nSchedul eI
II
;or
(
b)suchact i
vit
iesort ransacti
onsunder t
akenbyt heCentr
alGovernment,aState
Gover
nmentoranyl ocalauthori
tyinwhicht heyareengagedaspubl
icauthori
ti
es,as
maybenoti
fiedbyt heGovernmentont herecommendationsoft
heCouncil
,

shal
lbet
reat
ednei
therasasuppl
yofgoodsnorasuppl
yofser
vices.

(
3)Subjecttot
heprovi
sionsofsub-secti
ons(1)and( 2)
,theGover
nmentmay,onthe
recommendati
onsoftheCounci
l,specif
y,bynot
if
icati
on,t
hetr
ansact
ionst
hatar
eto
betreat
edas—

(
a)asuppl
yofgoodsandnotasasuppl
yofser
vices;or

(
b)asuppl
yofser
vicesandnotasasuppl
yofgoods.

8.Thet axli
abi
li
tyonacomposi
teorami
xedsuppl
yshal
lbedet
ermi
nedi
nthe
fol
lowingmanner
,namel
y:—

(a)acomposi
tesuppl
ycompri
singt
woormor esuppli
es,oneofwhi
chi
sapr
inci
pal
supply,
shal
lbet
reat
edasasuppl
yofsuchpr
inci
palsuppl
y;and

(
b)ami xedsupplycompri
singtwoormoresuppli
esshallbet
reat
edasasuppl
yof
t
hatpar
ti
cularsuppl
ywhichatt
ract
sthehi
ghestr
ateoftax.

9.(1)Subjecttothepr
ovisionsofsub-
secti
on(2), t
hereshal
lbelevi
edat axcall
edthe
Keralagoodsandser vicestaxonallintr
a-Statesuppli
esofgoodsorser vi
cesor
both,exceptonthesuppl yofal
cohol
icli
quorf orhumanconsumpt i
on,onthevalue
determinedundersect
ion15andatsuchr ates,notexceedingtwentypercent.
,as
maybenot if
iedbytheGover nmentont her ecommendationsoft heCounciland
coll
ectedinsuchmannerasmaybepr escri
bedandshal lbepai dbyt hetaxabl
e
person.
(
2)TheStat
etaxont hesuppl
yofpe tr
oleum cr
ude,hi
ghs peeddiesel
, motorspir
it
(commonlyknownaspe t
rol
),naturalgasandav i
ati
ont ur
binef uel
,s hal
lbe
l
ev i
edwi
theffectfr
om suchdateasmaybenot ifi
edbytheGov ernme ntonthe
recommendat
ionsoftheCouncil
.

(
3)TheGov er
nme ntmay,ont herecomme ndationsoft heCounc i
l,bynot i
fi
cation,
speci
fycategori
esofs upplyofgoodsors ervi
cesorbot h,thet axonwhi c h
shal
lbepai d on reversechargebas i
sbyt herec i
pientofs uc h goodsor
servi
cesorbothandal ltheprovi
sionsofthisAc tshallappl
ytos uchrecipi
e nt
asifheisthepe r
sonliableforpayingt
het axi nrel
ati
ont othes upplyofs uc h
goodsorservi
cesorbot h.

(
4)TheSt atetaxinrespectofthesuppl
yoftaxablegoodsors er
vicesorbot
hbya
supplier,whoisnotr egist
ered,t
oar egi
steredpersonshallbepai dbysuc h
persononr ever
sec har
gebas isasthereci
pientandalltheprovisi
onsofthis
Acts hallappl
ytos uchrecipi
entasifhei
st hepersonli
ableforpayingt
het ax
i
nr el
ationtothes uppl
yofs uchgoodsorservi
cesorboth.

(
5)TheGov ernme ntmay ,onther ecomme ndati
onsoft heCounc il
,bynoti
fi
cati
on,
specif
ycat egori
esofs ervi
cesthet axoni nt
ra-
Stat
es uppl
i
e sofwhichshal
lbe
pai
dbyt hee lect
roni
cc omme rceope ratorifsuchservicesaresuppli
edthr
ough
i
t,andallt heprovisi
onsoft hisAc ts hallappl
yt os uche l
ectr
oniccomme rce
operat
orasi fheisthes uppli
erli
ablef orpayingthetaxi nrel
ati
ontothesupply
ofsuchs ervi
ces:

Provided thatwherean electroni

ccommer ceoperatordoesnothaveaphysi
cal
presencei nthetaxablet
erri
tory,anypersonrepr
esentingsuchel
ect
roni
ccommerce
operatorforanypurposei
nthetaxableter
ri
tor
yshal
lbeliablet
opayt
ax:

Pr
ovided furt
herthatwher e an elect
roni
c commerce oper
atordoes nothave a
physicalpresenceinthet
axableterr
itoryandalsohedoesnothavear epresent
ati
vei n
thesai dterri
tor
y,suchelectr
oniccommer ceoperat
orshallappointaper sonint he
taxableter
rit
oryfort
hepurposeofpayi ngt
axandsuchpersonshallbeli
abl
et opaytax.

10.
(1)Notwithst
andinganythi
ngt othecont r
arycontai
nedi
nthisActbutsubj ecttothe
provi
sionsofsub- secti
ons( 3)and( 4)ofsect i
on9,ar egist
eredper son,whose
aggregateturnoverintheprecedingfinanci
alyeardidnotexceedfift
ylakhr upees
mayoptt opay, inli
euofthet axpayablebyhim, anamountcalcul
atedatsuchr ate
asmaybepr escri
bed,butnotexceeding,-

(
a)onepercent.ofthetur
noverinSt ateincaseofamanuf act
urer,
(
b)twoandahal fpercent.oftheturnoveri
nSt at
eincaseofpersonsengagedin
makingsuppliesref
err
edt oinclause(b)ofparagraph6ofSchedul
eII,and
(
c)hal
fpercent.ofthetur
noveri nStateincaseofothersuppl
ier
s,
subjecttosuchcondit
ionsandr est
ri
cti
onsasmaybepr escri
bed:
Providedthatt
heGover nmentmay,bynoti
fi
cati
on,
increasethesaidli
mitoff
if
tyl
akh
rupees to such higheramount ,notexceedi
ng one cr or
er upees,as may be
 r
ecommendedbyt
heCounci
l.

(
2)Ther
egi
ster
edper
sonshal
lbeel
igi
blet
ooptundersub-
sect
ion(
1),
if—

(a)heisnotengagedi
nthesupplyofser
vicesot
hert
hansuppl
iesr
efer
redt
oin
cl
ause(b)ofpar
agr
aph6ofSchedul
eII;

(
b)heisnotengagedi
nmaki
nganysuppl
yofgoodswhi
char
enotl
evi
abl
etot
ax
undert
hisAct
;

(
c)hei
snotengagedi
nmaki
nganyi
nter
-St
ateout
war
dsuppl
iesofgoods;

(d)heisnotengaged in maki
ng anysupplyofgoodst hrough an el
ect
roni
c
commerceoper
atorwhoi
srequi
redtocol
lectt
axatsour
ceundersecti
on52;and

(
e)heisnotamanufacturerofsuchgoodsasmaybenot
if
iedbyt
heGover
nment
ont
herecommendat
ionsoftheCouncil
:

Provided t
hatwher e mor
et han one r
egistered person are havi
ng the same
PermanentAccountNumber( i
ssuedundertheI ncome-taxAct1961) ,theregi
ster
ed
personshallnotbeeli
gibl
etooptfort
heschemeundersub- secti
on(1)unlessal
lsuch
regi
steredpersonsopttopayt
axunderthatsub-secti
on.

(
3)Theoptionavail
edofbyar egist
eredpersonunde rsub-sect
ion(1)shalll
apse
witheff
e ctf
rom thedayonwhi chhisaggr egateturnoverduri
ngaf i
nanci
al
yearexceedstheli
mitspeci
fi
edundersub-sect
ion(1)
.

(
4)Ataxablepersont owhom thepr ovi
sionsofs ub-
sect
ion(
1)appl
ys hal
lnot
col
l
e ctanytaxf r
om thereci
pientons uppl
i
e smadebyhim norshal
lhebe
ent
it
ledtoanyc r
editofi
nputt
ax.

(
5) Ifthepr operof f
ice rhasre asonst obe lievethatat axablepe r
sonhaspai dtax
unde rs ub-
se ct
ion( 1)de spit
enotbe inge li
gible,suc hpe rsons hall
,inaddi ti
on
toanyt axthatmaybepay ablebyhi m unde ranyot herpr ov i
sionsoft hi
sAc t,
bel iabl etoape naltyandt hepr ovisionsofs e ct
ion73ors e ct
ion74s hal
l,
mut at ismut andis,applyforde terminationoft axandpe nalty .
11.(1)Wher etheGover nmentissat isf
iedthatiti
snecessar yint hepubl i
ci nt
erestsoto
do, itmay,ont her ecommendat ionsoftheCounci l
, bynotif
ication,exemptgener all
y,
eitherabsol ut
elyorsubjecttosuchcondi ti
onsasmaybespeci f i
edtherein,goodsor
ser vicesorbot hofanyspeci f
ieddescr i
pti
onfrom t hewhol eoranypar tofthetax
leviablethereonwi theff
ectfrom suchdat easmaybespeci fi
edi nsuchnot ifi
cati
on.

(
2)Whe r
et heGov ernmentiss at
isf
iedthatiti
sne cessar
yi nt
hepublicint
erestso
t
odo, itmay ,ont herecomme ndati
onsoft heCounc i
l,byspeci
alorderineach
case,unde rci
rcums t
anc esofane xcept
ionalnaturet
obes tat
edins uchorder
,
exemptf rom pay mentoft axanygoodsors er
v i
cesorbothonwhi chtaxis
l
eviabl
e .
(
3)TheGov e r
nme ntmay ,i
fitc onsi
dersne cessar yore xpedients otodof orthe
purposeofc larif
y i
ngthes copeorappl i
cabil
ityofanynot i
ficat
ionissuedunder
sub-sect
ion( 1)oror derissuedunde rsub-se cti
on(2),inse r
tane xplanat
ionin
suchnotifi
c ationoror der,
ast hecasemaybe ,bynotif
icati
onatanyt imewi t
hin
oney earofi s sueoft henot i
fi
cat
ionunde rs ub-secti
on( 1)oror derundersub-
secti
on( 2),ande ver
ys uche xpl
anations hallhav eeffectasi fi
thadal ways
beenthepar toft hefi
rstsuchnotifi
cati
onoror der,
asthec asemaybe .

(4)Anynot if
icationissuedbyt heCe ntr
alGove rnme nt
,ontherecomme ndati
onsof
theCounc il
,unde rs ub-sect
ion( 1)ofs ec t
ion11oft heCe ntr
alGoodsand
Se r
v i
c esTaxAc tshallbede emedt obeanot i
fi
cati
onissuedunde rthi
sAc t.
Explanation.––Fort hepurposesofthissecti
on,wher eanexemptioninrespectofany
goodsorser vicesorbot hf r
om thewholeorpar tofthetaxlevi
ablethereonhasbeen
grantedabsol utely,
theregist
eredper
sonsupplyingsuchgoodsorser vi
cesorbothshall
notcollectthet ax,i
nexcessoft heef
fecti
verat
e, onsuchsupplyofgoodsorservicesor
both.

CHAPTERI
V
TI
MEANDVALUEOFSUPPLY

12.
(1)Theli
abi
li
tyt
opaytaxongoodsshallari
seatthet
imeofsuppl
y,asdet
ermi
ned
inaccor
dancewit
hthepr
ovi
sionsoft
hissecti
on.

(
2)Thet
imeofsuppl
yofgoodsshal
lbet
heear
li
eroft
hef
oll
owi
ngdat
es,
namel
y:-

(a)thedateofissueofi
nvoi
cebyt hesuppl
ierorthelastdat
eonwhi chheis
requir
ed,undersub-
sect
ion(
1)ofsect
ion31,t
oissuetheinvoi
cewithr
espectt
othe
supply;or

(
b)t
hedat
eonwhi
cht
hesuppl
ierr
ecei
vest
hepaymentwi
thr
espectt
othesuppl
y:

Provi
dedt hatwherethesuppli
eroftaxablegoodsrecei
vesanamountuptoone
thousandr upeesinexcessoft heamounti ndi
catedinthetaxi
nvoi
ce,theti
meof
supplytotheextentofsuchexcessamountshall,att
heopti
onoft
hesaidsuppl
ier
,be
thedateofissueofinvoi
ceinrespectofsuchexcessamount.

Expl
anati
on1.
––Fort
hepurposesofclauses(
a)and(b),
“suppl
y”shal
lbedeemedto
havebeenmadet ot
heext
entitiscover
edbyt heinvoi
ceor,asthecasemaybe,the
payment.

Expl
anat
ion 2.
––Fort
hepur
posesofcl
ause(
b),“
thedat
eonwhi
cht
hesuppl
ier
receivest
hepayment
”shal
lbethedat
eonwhichthepaymenti
senter
edinhi
sbooksof
accountorthedat
eonwhichthepaymenti
scredi
tedt
ohisbankaccount
,whi
cheveri
s
earli
er.
(
3)Incaseofsuppli
esi
nrespectofwhi
chtaxi
spai
dorli
abl
etobepaidonrever
se
chargebasi
s,theti
meofs upplyshal
lbetheear
li
estoft
hefol
lowingdates,
name l
y:—

(
a)t
hedat
eoft
her
ecei
ptofgoods;or

(b)t
hedateofpaymentasent
eredi
nthebooksofaccountofthereci
pientort
he
dat
eonwhichthepaymenti
sdebi
tedi
nhisbankaccount
,whi
cheveri
searl
ier;or

(
c)thedateimmedi
atel
yfoll
owingthi
rt
ydaysfr
om t
hedat eofissueofinvoi
ceor
anyotherdocument
,bywhatevernamecall
ed,i
nli
eut
hereofbythesuppl
ier
:

Providedt
hatwhereitisnotpossi
blet
odet
ermi
netheti
meofsuppl
yundercl
ause
(a)orclause(
b)orclause(c),
theti
meofsuppl
yshal
lbethedat
eofent
ryi
nthebooks
ofaccountofthereci
pientofsuppl
y.

(
4)I
ncaseofsuppl
yofvoucher
sbyasuppl
ier
,thet
imeofsuppl
yshal
lbe-

(
a)t
hedat
eofi
ssueofvoucher
,ift
hesuppl
yisi
dent
if
iabl
eatt
hatpoi
nt;or

(
b)t
hedat
eofr
edempt
ionofvoucher
,inal
lot
hercases.

(
5)Wherei
tisnotpossi
bletodetermi
nethetimeofsuppl
yundert
hepr ovi
sionsof
sub-
sect
ion(
2)orsub-sect
ion(3)orsub-
sect
ion(
4),t
heti
meofs upplyshall
––

(
a)i
nacasewhereaper
iodi
calr
etur
nhast
obef
il
ed,bet
hedat
eonwhi
chsuch
r
eturni
stobef
il
ed;or

(
b)i
nanyot
hercase,
bet
hedat
eonwhi
cht
het
axi
spai
d.

(
6) Thet i
meofs upplyt otheextenti trel
atestoanaddit
ioni
nt hevalueofsupply
bywayofi nterest
,lat
ef eeorpe naltyfordel
ayedpaymentofanyc onsi
derat
ion
shallbet
hedat eonwhi chthes uppli
errecei
vessuchaddi
ti
oninvalue.
13.(1)Thel
iabi
li
tytopaytaxonser vicesshal
lar
iseatt
heti
meofsuppl
y,asdeter
mined
i
naccordancewiththeprovi
sionsoft hi
ssecti
on.

(
2)Thet
imeofsuppl
yofser
vicesshal
lbet
heear
li
estoft
hef
oll
owi
ngdat
es,
namel
y:–

a)t
( hedat
eofi
ssueofi
nvoi
cebyt
hesuppl
ier
,ift
hei
nvoi
cei
sissuedwi
thi
ntheper
iod
prescribedundersub- secti
on(2)ofsecti
on31ort hedat
eofr ecei
ptofpayment
,
whi cheveri
searl
ier;or
b)t
( he date ofprovision ofservi
ce,i
ft he i
nvoi
ce i
s noti
ssued wit
hint
he per
iod
prescri
bedundersub- sect
ion(2)ofsecti
on31ort hedat
eofr ecei
ptofpayment
,
whicheverisear
li
er ;or
c)t
( hedat
eonwhi
cht
her
eci
pientshowst
her
ecei
ptofser
vicesi
nhi
sbooksofaccount
,
i
nacasewherethepr
ovi
sionsofclause(
a)orclause(b)donotappl
y:
Pr
ovi
dedthatwheret
hesupplieroftaxabl
eser vi
cerecei
vesanamountupt
oone
 thousandrupeesinexcessoft heamountindi
catedinthetaxi
nvoi
ce,theti
meof
supplytot
heextentofsuchexcessamountshal
l,att
heopti
onoft
hesaidsuppl
ier
,be
thedateofi
ssueofinvoi
cerel
ati
ngtosuchexcessamount.

Expl
anat
ion.
––Fort
hepur
posesofcl
auses(
a)and(
b)-
(
i) t
hesuppl
yshallbedeemedt
ohavebeenmadet
o
t
heext
enti
tiscover
edbyt
hei
nvoi
ceor
,asthecasemaybe,t
hepayment
;

(
ii
) “
thedateofr
ecei
ptofpayment”shallbethedate
onwhi
chthepaymenti
sent
eredinthebooksofaccountoft
hesuppl i
erorthe
dat
eonwhicht
hepaymenti
scredi
tedtohi
sbankaccount,
whicheverisear
li
er.

(
3)Incaseofsuppli
esi
nrespectofwhi
cht
axi
spaidorl
iabl
etobepaidonrever
se
chargebasis,t
heti
meofs uppl
yshal
lbetheear
li
erofthefol
lowingdates,
name l
y:––

(a)t
hedateofpaymentasent
eredi
nthebooksofaccountofthereci
pientort
he
dat
eonwhichthepaymenti
sdebi
tedi
nhisbankaccount
,whi
cheveri
searl
ier;or

(
b)thedateimmediat
elyfol
lowingsi
xtydaysf
rom thedateofi
ssueofinvoi
ceor
anyotherdocument
,bywhatevernamecall
ed,i
nli
euthereofbyt
hesuppl
ier
:

Providedthatwherei
tisnotpossi
blet
odeter
minet
het i
meofsupplyundercl
ause(a)
orclause(b),theti
meofsupplyshal
lbethedat
eofentr
yinthebooksofaccountoft
he
reci
pientofsupply:

Provi
dedfurtherthatincaseofsupplybyassoci
atedenter
pri
ses,wherethesuppl
ierof
servi
ceislocat
edout sideIndi
a,theti
meofsupplyshallbethedateofentr
yinthebooks
ofaccountofther eci
pientofsuppl
yorthedateofpayment,whi
cheverisearl
ier
.

(
4)I
ncaseofsuppl
yofvoucher
sbyasuppl
ier
,thet
imeofsuppl
yshal
lbe––

(
a)t
hedat
eofi
ssueofvoucher
,ift
hesuppl
yisi
dent
if
iabl
eatt
hatpoi
nt;or

(
b)t
hedat
eofr
edempt
ionofvoucher
,inal
lot
hercases.

(
5)Wherei
tisnotpossi
bletodetermi
nethetimeofsuppl
yundert
hepr ovi
sionsof
sub-
sect
ion(
2)orsub-sect
ion(3)orsub-
sect
ion(
4),t
heti
meofs upplyshall
––

(
a)i
nacasewhereaper
iodi
calr
etur
nhast
obef
il
ed,bet
hedat
eonwhi
chsuch
r
eturni
stobef
il
ed;or

(
b)i
nanyot
hercase,
bet
hedat
eonwhi
cht
het
axi
spai
d.

(
6) Thetimeofs upplyt otheextentitr
elatestoanaddi t
ionint heval
ueofs uppl
y
bywayofi nt
er est
,lat
ef eeorpenalt
yf ordel
ayedpay me ntofanycons ider
ati
on
shal
l bethedat eonwhi chthes uppl
ierrecei
vess uchadditi
oninvalue .
14.Notwit
hstandinganythi
ngcontainedinsecti
on12orsect i
on13,theti
meofsuppl y,
wherethereisachangei ntherateoftaxinrespectofgoodsorservicesorboth,
 shal
lbedet
ermi
nedi
nthef
oll
owi
ngmanner
,namel
y:––

(a)i
ncaset
hegoodsorser
vicesorbot
hhavebeensuppl
iedbef
oret
hechangei
n
r
ateoft
ax,
––

(i
)wheretheinvoi
cef
orthesamehasbeeni ssuedandt hepaymenti
salso
r
ecei
vedaftert
hechangeinrat
eoft ax,theti
meofsuppl yshal
lbethedateof
r
ecei
ptofpaymentort
hedat
eofissueofinvoi
ce,whicheveri
searl
ier
;or

(i
i)wheret heinvoicehasbeenissuedpri
ortot hechangei
nrateoftaxbut
paymenti srecei
vedaf tert
hechangei
nr at
eoftax,t
heti
meofsupplyshal
lbethe
dateofissueofinvoice;or

(
ii
i)wher
ethepaymenthasbeenr ecei
vedbefor
ethechangeinr
ateoft
ax,but
thei
nvoicef
orthesameisissuedaf
terthechangei
nrat
eoftax,t
heti
meofsupply
shal
lbethedat
eofrecei
ptofpayment;

(b)i
ncaset
hegoodsorser
vicesorbot
hhavebeensuppl
iedaf
tert
hechangei
n
r
ateoft
ax,
––

(i
)wher ethepaymentisr
ecei
vedaft
erthechangeinrat
eoft
axbutt
heinvoi
ce
hasbeenissuedpr i
ort
othechangei
nrateoftax,theti
meofsuppl
yshal
lbethe
dat
eofreceiptofpayment
;or

(i
i)wheret heinvoicehasbeeni ssuedandpaymenti
sr ecei
vedbefor
et he
changeinr at
eoft ax,theti
meofsuppl yshallbet
hedat
eofr
eceiptofpaymentor
dateofissueofinvoice,whicheveri
searl
ier
;or

(i
ii
)wheretheinvoicehasbeeni ssuedaf
tert
hechangei
nr at
eoftaxbutt
he
paymenti sr
ecei
vedbef or
ethechangeinrat
eoftax,
thet
imeofsuppl
yshal
lbet
he
dateofissueofi
nvoice:

Pr
ovidedthatthedateofrecei
ptofpaymentshal
lbethedat
eofcr
editi
nthebank
accountifsuchcreditinthebankaccounti
safterf
ourworki
ngdaysf
rom t
hedateof
changeintherateoftax.

Expl
anat
ion.
––Fort
hepur
posesoft
hissect
ion,
“thedat
eofr
ecei
ptofpayment
”shal
l
bethedat
eonwhi
chthepaymentisent
eredi
nthebooksofaccountofthesuppl
ieror
thedat
eonwhi
cht
hepaymenti
scredi
tedtohi
sbankaccount
,whi
cheveri
searl
ier
.

15.
(1)Thevalueofasupplyofgoodsorser vi
cesorbothshal
lbethet
ransacti
onvalue,
whichisthepriceact
uall
ypaidorpayabl efort
hesaidsuppl
yofgoodsorser vi
ces
orbothwher ethesuppli
erandt hereci
pientofthesuppl
yarenotrelat
edandt he
pri
ceisthesoleconsi
derat
ionforthesupply.

(
2)Theval
ueofsuppl
yshal
li
ncl
ude–––

(a)anyt
axes,dut
ies,cesses,f
eesandchargesl
evi
edunderanylaw f
ort
heti
me
bei
nginfor
ceotherthant hi
sAct,theCent
ralGoodsandServi
cesTaxActandthe
GoodsandSer
vicesTax(
Compensat
iont
oSt
ates)Act
,ifchar
gedsepar
atel
ybyt
he
suppl
ier
;

(b)anyamountthatt
hesupplieri
sliabl
etopayinr
elat
iontosuchsuppl
ybutwhich
hasbeenincurr
edbythereci
pientofthesupplyandnoti
ncludedint
hepriceact
uall
y
pai
dorpayablefort
hegoodsorservi
cesorboth;

(c)i
ncidentalexpenses,i
ncl
udingcommi ssi
onandpacki
ng,chargedbythesuppl
ier
totherecipi
entofasuppl yandanyamountchar gedf
oranythi
ngdonebyt hesuppl
ier
i
nr espectofthesuppl yofgoodsorservi
cesorbothatthet
imeof,orbefor
edeli
ver
yof
goodsorsuppl yofservices;

(
d)int
erestorl
atef
eeorpenal
tyf
ordel
ayedpaymentofanyconsi
der
ati
onf
orany
suppl
y;and

(
e)subsidiesdir
ect
lyl
inked t
ot hepri
ceexcl
udi
ng subsi
diespr
ovi
ded byt
he
Centr
alGovernmentandSt
ateGovernment
s.

Expl
anat
ion.
––Fort
hepur
posesoft
hissub-
sect
ion,t
heamountofsubsi
dyshal
l
bei
ncl
udedi
ntheval
ueofsuppl
yoft
hesuppl
ierwhor
ecei
vest
hesubsi
dy.

(
3)Theval
ueoft
hesuppl
yshal
lnoti
ncl
udeanydi
scountwhi
chi
sgi
ven—

(
a)bef
oreorattheti
meoft hesupplyifsuchdi
scounthasbeendul
yrecor
dedi
n
t
hei
nvoi
ceissuedi
nrespectofsuchsuppl
y;and

(
b)af
tert
hesuppl
yhasbeenef
fect
ed,
if-

(i
)suchdiscounti
sest
abli
shedintermsofanagr eemententer
edi nt
oator
bef
oret
heti
meofsuchsupplyandspeci
fi
cal
lyl
inkedt
or el
evanti
nvoi
ces;and

(i
i)i
nputtaxcredi
tasisatt
ri
butablet
othedi
scountonthebasisofdocument
i
ssuedbythesuppli
erhasbeenrever
sedbyther
eci
pientoft
hesupply.

(
4)Wheret he val
ue ofthe suppl
y ofgoods ors er
vices orbothc annotbe
det
ermined undersub-sect
ion (
1),t
he same shal
lbe de ter
minedi nsuch
mannerasmaybepr escri
bed.

(
5)Notwit
hstandinganythingcont
ainedi
ns ub-
sec t
ion(1)ors ub-
sect
ion(4)
,the
val
ue ofs uchs uppli
es as may be noti
fi
ed by t he Gover
nme nton the
recommendat i
onsoft heCounci
lshal
lbede ter
mi nedinsuchmanne rasmay
beprescr
ibe d.

Expl
anat
ion.
-Fort
hepur
posesoft
hisAct
,-
(
a)per
sonsshal
lbedeemedt
obe“
rel
atedper
sons’
’i
f-
(
i) suchper
sonsar
eof
fi
cer
sordi
rect
orsofone
 anot
her
'sbusi
nesses;
(
ii
) suchper
sonsar
elegal
lyr
ecogni
sedpar
tner
sin
busi
ness;
(
ii
i) suchper
sonsar
eempl
oyerandempl
oyee;
(
iv) anyper
sondir
ect
lyorindir
ect
lyowns,cont
rol
sor
holdstwent
y-fi
vepercent
.ormor
eoftheoutst
andingvoti
ngstockor
sharesofbothofthem;
(
v) oneoft
hem di
rect
lyori
ndi
rect
lycont
rol
sthe
ot
her
;
(
vi) bot
hoft
hem ar
edi
rect
lyori
ndi
rect
lycont
rol
led
byat
hir
dper
son;
(
vii
) t
oget
hert
heydi
rect
lyori
ndi
rect
lycont
rolat
hir
d
per
son;or
(
vii
i)
theyar
emember
soft
hesamef
ami
ly;
(
b)t
het
erm"
per
son"al
soi
ncl
udesl
egalper
sons.
(
c) per
sonswhoar
eassoci
atedi
nthebusi
nessofoneanot
heri
nthatonei
sthesol
e
agentorsol
edi
str
ibutororsol
econcessi
onai
re,
howsoeverdescr
ibed,
oft
heot
her
,shal
l
bedeemedtoberelat
ed.

CHAPTERV
I
NPUTTAXCREDI
T

16.
(1)Everyregist
eredpersonshal
l,
subjecttosuchconditi
onsandrestri
cti
onsasmay
bepr escr
ibedandi nt
hemannerspeci f
iedinsecti
on49, beent
it
ledtotakecredi
tof
inputtaxchargedonanysuppl yofgoodsorservicesorbothtohim whichareused
orintendedt obeusedi nthecourseorf urt
heranceofhisbusinessandt hesaid
amountshal lbecredi
tedtotheel
ectr
oniccredi
tledgerofsuchperson.

(
2)Notwi
thstandi
nganythi
ngcontai
nedinthi
ssecti
on,noregi
ster
edpersonshal
l
beenti
tledtothecredi
tofanyinputt
axinrespectofanysupplyofgoodsor
ser
vicesorbothtohi
m unl
ess,
––

(
a)heisi
npossessi
onofataxi
nvoi
ceordebi
tnot
eissuedbyasuppli
err
egi
ster
ed
undert
hisAct
,orsuchot
hert
axpayi
ngdocument
sasmaybepr escr
ibed;

(
b)hehasr
ecei
vedt
hegoodsorser
vicesorbot
h.

Expl
anat
ion.
—Fort
he pur
poses oft
his cl
ause,i
tshal
lbe deemed t
hatt
he
regi
ster
ed per
son hasr ecei
ved t
hegoodswher et hegoodsar edel
iver
ed byt he
suppli
ertoarecipi
entoranyotherpersononthedi
rectionofsuchr
egi
ster
edperson,
whetheract
ingasanagentorot herwi
se,bef
oreorduringmovementofgoods,ei
ther
bywayoft r
ansferofdocumentsofti
tl
etogoodsorotherwise;
 (c)subjecttotheprovi
sionsofsect ion41,thetaxchargedinrespectofsuch
supplyhasbeenact ual
lypaidtotheGover nment
,ei
therincashort
hroughutil
isat
ion
ofinputtaxcredi
tadmissi
bleinrespectofthesai
dsupply;and

(
d)hehasf
urni
shedt
her
etur
nundersect
ion39:

Pr ovi
ded thatwherethe goods agai
nstan i
nvoice arerecei
ved i
nl ot
s or
i
nstalments,t
heregi
ster
edper
sonshallbeenti
tl
edt
ot akecredi
tuponrecei
ptofthe
l
astlotorinst
alment
:

Pr ovi
dedf urt
herthatwher ear eci
pientfai
lst opayt othesuppl i
erofgoodsor
servicesorbot h,ot
herthant hesuppli
esonwhi cht axispayableonr eversecharge
basis, t
heamountt owardsthevalueofsuppl yal
ongwi t
htaxpayablethereonwithi
na
periodofonehundr edandei ghtydaysf rom thedat eofi ssueofi nvoicebyt he
suppl i
er,anamountequalt ot
heinputtaxcreditavailedbythereci
pientshallbeadded
tohi sout puttaxliabi
li
ty,al
ongwi thinter
estt hereon,insuchmannerasmaybe
prescr i
bed:

Provi
dedalsot
hatt
hereci
pientshal
lbeentit
ledt
oavai
loft
hecreditofi
nputt
ax
onpaymentmadebyhi m oft
heamountt owar
dstheval
ueofsupplyofgoodsor
ser
vicesorbot
hal
ongwit
htaxpayablether
eon.
(
3)Whe r
et heregi
ster
edpe r
sonhasc l
aimeddepreci
ationonthetaxcomponentof
thecos tofcapi
talgoodsandplantandmac hi
neryunde rt
heprovisi
onsofthe
Income -
taxAct,1961,t
heinputtaxcredi
tonthes aidt
axc omponentshal
lnot
beallowe d.

(
4)Are gi
steredpe rsonshallnotbee nti
tl
edtotakeinputtaxcrediti
nr espectof
anyinvoiceorde bitnoteforsupplyofgoodsors ervi
cesorbothaf t
erthedue
dateoff urni
shingoft heretur
nunde rsect
ion39f orthemonthofSe ptember
fol
lowingt heendoff i
nanc i
alyeartowhichsuchinvoiceorinvoicerel
atingto
suchde bitnotepe r
tai
nsorf urni
shingoft
her el
evantannualret
urn,whichever
i
se arl
i
e r
.

17.
(1)Wher ethegoodsorser
vicesorbot
hareusedbytheregi
steredper
sonpar
tl
yfor
thepurposeofanybusi nessandpartl
yforotherpur
poses,theamountofcredi
t
shallberestri
ctedt
osomuchoft hei
nputt
axasi sat
tr
ibut
abletothepur
posesof
hisbusiness.

(
2)Whe r
et hegoodsors ervi
cesorbot hareus edbyther e gi
ster
edpe rsonpar tl
y
foreffect
ingtaxables uppl
iesincl
udingz er
o-rat
eds uppl i
esunde rthi
sAc tor
undert heIntegrated Goodsand Se rvi
cesTaxAc tand par tl
yf ore ff
e ct
ing
exempts uppli
esunde rthesaidAc t
s,theamountofc reditshallberestr
ict
e dto
somuc hoft heinputtaxasisattr
ibutabl
etothes ai
dtax ablesuppli
esincluding
zero-
ratedsupplies.
(
3)Thev alueofe xempts upplyunde rsub-secti
on( 2)s hallbes uchasmaybe
prescr
ibed,ands halli
nc l
udes uppli
esonwhi chther e ci
pienti
sliabl
etopaytax
onreversec har
gebas i
s,transact
ionsinse curi
ti
es,s al
eofl andand,subj
ectto
cl
ause( b)ofparagraph5ofSc heduleII
,saleofbui l
ding.

(
4)Abank ingc ompanyoraf inanciali
nsti
tuti
onincludi
nganon- bank i
ngfi
nanc ial
company ,e ngagedi ns upplyi
ng s er
vices by way ofac cepting deposits,
extendingloansoradv ance sshallhavetheopt i
ont oe i
therc omplywitht he
provisi
onsofs ub-
secti
on( 2),oravai
lof,ever
ymont h,anamounte qualtofi
ft y
perc ent.oft hee l
igi
bleinputt axc r
editoni nputs,capit
algoodsandi nput
servi
cesi nthatmont handt herestshalll
apse:

Provi
dedthatt
heopti
ononceexer
cisedshal
lnotbewi
thdr
awndur
ingt
her
emai
ning
par
tofthefi
nanci
alyear
:

Providedf
urt
herthattherestr
ict
ionoff
if
typer
cent
.shallnotappl
ytothetaxpai
don
suppli
esmadebyoner egi
steredpersont
oanotherr
egi
steredpersonhavi
ngthesame
PermanentAccountNumber.

(
5)Notwit
hstandi
ngany t
hingc ont
ainedinsub-sect
ion(
1)ofsect
ion16ands ub-
sect
ion(1)ofsecti
on18,inputtaxcredi
tshal
lnotbeavai
l
abl
einr espectofthe
f
oll
owing,name l
y:-

(
a)mot
orvehi
clesandot
herconveyancesexceptwhent
heyar
eused––

(
i)f
ormaki
ngt
hef
oll
owi
ngt
axabl
esuppl
ies,
namel
y:––

(
A)f
urt
hersuppl
yofsuchvehi
clesorconveyances;or

(
B)t
ranspor
tat
ionofpassenger
s;or

(
C)i mparti
ng t
rai
ning on dr
ivi
ng,f
lyi
ng,navi
gat
ing such vehi
cles or
conveyances;

(
ii
)fort
ranspor
tat
ionofgoods;

(
b)t
hef
oll
owi
ngsuppl
yofgoodsorser
vicesorbot
h:-

(
i)f
oodandbever ages,outdoorcateri
ng,beautytreat
ment,heal
thservices,
cosmeti
candplasti
csur geryexceptwhereani nwar
dsupplyofgoodsorser vi
ces
orbothofapar ti
cularcategoryisusedbyar egi
ster
edpersonf ormakingan
outwar
dtaxabl
esuppl yofthesamecat egoryofgoodsorservi
cesorbothorasan
el
ementofataxablecomposi t
eormi xedsupply;

(
ii
)member
shi
pofacl
ub,
heal
thandf
it
nesscent
re;

(i
ii
)rent
-a-
cab,
lif
einsuranceandheal
thi
nsuranceexceptwher e-
(A)theGovernmentnotif
iestheservi
ceswhichareobli
gatoryforanempl
oyert
o
provi
det oi
tsemployeesunderanylawfort
hetimebeinginforce;or
 (
B) suchi nwardsuppl
yofgoodsorservi
cesorbothofaparti
cul
arcat
egoryis
usedbyar egi
ster
edpersonformaki
nganoutwardtaxabl
esuppl
yofthesame
categoryofgoodsorservi
cesorbot
horaspartofataxabl
ecomposi
teormixed
supply;and

(
iv)tr
avelbenef
it
sext
endedt
oempl
oyeesonvacat
ionsuchasl
eaveorhome
t
ravelconcessi
on.

(c)workscontractservi
ceswhen supplied forconst
ruct
ion ofan i
mmovable
propert
y(otherthanplantandmachi nery)exceptwhereitisani nputser
vicef
or
furt
hersupplyofworkscontr
actser
vice;

(
d)goodsorservi
cesorbothrecei
vedbyataxabl
epersonf
orconstr
ucti
onofan
i
mmovabl eproper
ty(ot
herthanplantormachi
nery)onhisownaccountincl
udi
ng
when such goodsorservi
cesorbot h ar
eused inthecour
seorf ur
ther
anceof
busi
ness.

Expl
anation.
––For t he purposes of clauses (c) and (d)
,t he expr
essi
on
“
const
ructi
on”incl
udesr e-
const
ructi
on,renovat
ion,addi
ti
onsoralt
erat
ionsorr
epai
rs,
t
otheextentofcapi
tal
isati
on,t
ot hesai
dimmovabl eproper
ty;

(
e)goodsorser
vicesorbot
honwhi
cht
axhasbeenpai
dundersect
ion¬10;

(
f)goodsorser
vicesorbot
hrecei
vedbyanon-
resi
dentt
axabl
eper
sonexcepton
goodsimport
edbyhim;

(
g)goodsorser
vicesorbot
husedf
orper
sonalconsumpt
ion;

(h)goodsl ost
,st
olen,dest
royed,wr
it
tenof
fordi
sposedofbywayofgi
ftorf
ree
samples;and

(
i)anyt
axpai
dinaccor
dancewi
tht
hepr
ovi
sionsofsect
ions74,
129and130.

(
6)TheGovernmentmaypr
escr
ibet
hemanneri
nwhi
cht
hecr
edi
tref
err
edt
oin
sub-
sect
ions(
1)and(
2)maybeat
tri
but
ed.

Expl
anat
ion.
––Fort
hepur
posesoft
hisChapt
erandChapt
erVI
,theexpr
essi
on“
plant
and machi nery” means appar atus,equipment ,and machi ner
yf ixed t
o earth by
foundat i
onorst ruct
uralsuppor tthatareusedf ormakingout wardsupplyofgoodsor
servicesorbot handincludessuchf oundati
onandst ruct
uralsupport
sbutexcludes-
(i)land,buil
dingoranyot hercivi
lstr
uctures;
(ii
)t el
ecommuni cati
ontower s;and
(ii
i)pipel
ineslaidoutsi
det hefactor
ypremi ses.

18.
(1)Subj
ectt
osuchcondi
ti
onsandr
est
ri
cti
onsasmaybepr
escr
ibed–

(
a)apersonwhohasappli
edforregi
str
ationunderthisActwithinthir
tydaysfr
om
t
hedateonwhi chhebecomesl i
abletor egist
rat
ionandhasbeengr antedsuch
r
egi
str
ati
onshal
lbeent
it
ledt
otakecredi
tofinputtaxinrespectofinputsheldinst
ock
 andinput scontainedi nsemi
-f
ini
shedorfi
nishedgoodshel
dinstockontheday
i
mmedi at
elyprecedingthedat
ef r
om whi
chhebecomesl i
abl
etopaytaxundert
he
provi
sionsofthisAct ;

(b)apersonwhot akesregi
strat
ionundersub-sect
ion(3)ofsect
ion25shallbe
enti
tledtotakecredi
tofi nputtaxi nrespectofinputsheldinstockandinputs
containedi
nsemi-fi
nishedorfini
shedgoodshel dinst ockonthedayimmediatel
y
precedingt
hedat
eofgr antofr
egistr
ati
on;

(
c)wher eanyr egi st
eredpersonceasestopayt axundersecti
on10,heshal lbe
enti
tl
edt otakecr editofinputtaxi
nrespectofinput
shel
dinstock,i
nputscont
ainedin
semi-f
inished orf inished goodsheldi n st
ockand on capit
algoodson t heday
i
mmedi atel
ypr eceding thedat efrom which hebecomesl i
ableto paytaxunder
sect
ion9:

Provi
dedthatt
hecreditoncapi
talgoodsshal
lber
educedbysuchper
cent
age
poi
ntsasmaybeprescr
ibed;

(d)whereanexemptsuppl yofgoodsorser vi
cesorbot hbyar egist
er edperson
becomesat axabl
esuppl y,suchpersonshallbeentit
ledtotakecredi
tofi nputtaxin
respectofi
nputsheldi
nst ockandinputscontai
nedinsemi-fini
shedorfi
nishedgoods
heldinstockrel
atabl
et osuchexemptsuppl yandoncapi talgoodsexclusivel
yused
forsuchexemptsupplyont hedayimmedi at
elyprecedi
ngt hedatefr
om whi chsuch
supplybecomestaxable:

Provi
dedthatt
hecreditoncapi
talgoodsshal
lber
educedbysuchper
cent
age
poi
ntsasmaybeprescr
ibed.

(
2)Ar egi
s t
eredper
sons hal
lnotbee nti
tl
edtotakei
nputt axcr
editundersub-
sect
ion( 1)i
nrespectofanysuppl
yofgoodsors er
vicesorbothtohim aft
er
t
hee xpi
ryofoneyearf r
om t
hedat eofissueoft
axinvoicerel
ati
ngtos uch
supply.

(
3)Whe ret hereisac hangeint heconsti
tuti
onofar egister
edpe rsononac count
ofsal e,me r
ger,
de merger
,amal gamati
on, l
easeortr ansferofthebusinesswith
thes pec i
fi
cprovisi
onsfortransferofl
iabil
it
ies,
thes ai
dregist
e r
edpe r
sons hal
l
beal lowe dtot r
ans f
erthei nputtaxc reditwhichr emainsunut i
l
isedinhi s
electroniccredi
tledgertosuc hs ol
d,me r
ged,de me rged,amalgamated,leased
ortrans fer
redbusinessi
ns uc hmannerasmaybepr escr
ibed.
(
4)Whe reanyr egister
e dpersonwhohasav ail
e dofi nputt axc r
e di
toptstopaytax
unde rsecti
on10or ,whe rethegoodsors e r
vicesorbot hs uppli
ed byhi m
become whol lye xempt ,he s hallpay an amount ,by way ofde bitinthe
el
ectronicc r
e ditledgerore l
ec t
ronicc as hle dge r
,e quivalenttot hecredi
tof
i
nputt axi nr es pectofi nputshe ldins tockandi nput sc ontainedins emi-
fi
nishedorf i
nis hedgoodshe l
di ns t
ockandonc apit
al goods ,reducedbysuch
percentagepoi ntsasmaybepr e scr
ibed, ont hedayi mme di
at el
yprecedi
ngthe
dateofe xer
c i
s i
ngofs uchopt ionor ,ast hec asemaybe ,t hedateofs uch
exemption:

Provi
dedthataft
erpaymentofsuchamount ,t
hebal
anceofi
nputt
axcr
edi
t,i
fany,
l
yinginhisel
ect
roni
ccredi
tledgershal
llapse.

(
5)Theamountofcredi
tundersub-
sect
ion(
1)andtheamountpayabl
eundersub-
sect
ion(
4)shal
lbecalcul
atedi
nsuchmannerasmaybeprescr
ibed.

(
6)Inc aseofs upplyofcapit
algoodsorpl antandmac hinery,onwhichinputtax
credithasbe entaken,t
her egist
eredpersons hal
lpayanamounte qualtothe
i
nputt axcreditt
akenont hes ai
dc api
talgoodsorplantandmac hineryreduced
bys uchpe rcent
agepointsasmaybepr escri
bedort hetaxont hetransact
ion
val
ueofs uchc api
talgoodsorpl antandmac hiner
yde t
erminedunde rsect
ion
15,whi cheveri
shigher:

Providedthatwhereref
ract
orybr
icks,moul
dsanddi
es,j
igsandfi
xtur
esar
esuppl
ied
asscr ap,thetaxablepersonmaypayt axonthetr
ansact
ionval
ueofsuchgoods
det
ermi nedundersecti
on15.

19.
(1)Thepr i
nci
palshal
l,subj
ectto such condi
tionsand r
estr
ict
ionsasmaybe
prescr
ibed,
beall
owedi
nputtaxcr
editoninputssenttoaj
ob-wor
kerforj
ob-
wor
k.

(
2)Notwit
hst
andinganythingcontai
nedinclause(b)ofs ub-sect
ion(2)ofse ct
ion
16,t
heprinci
palshal
l beent
it
ledtotakecredi
tofinputtaxoni nput
se venifthe
i
nputsaredir
ectl
ys enttoajob-wor
kerforjob-
workwi thoutbeingfi
rstbrought
tohi
splaceofbusiness.

(
3)Whe rethei nputsse ntf
orjob-workarenotreceivedbackbyt hepr
incipalaf
ter
compl et
ionofj ob-workorot her
wiseorar enots uppl
iedfrom t
hepl aceof
businessoft hejob-workeri
nac cor
danc ewithc l
ause(a)orc l
ause(b)ofsub-
secti
on( 1)ofs ecti
on143wi thinoney earofbeingsentout,
itshal
lbede eme d
thatsuchi nputshadbe ens uppl
iedbyt heprinci
paltothejob-workeront he
daywhe nt hes aidinput
swe resentout:

Provi
dedthatwher
etheinput
sar esentdir
ect
lyt
oajob-
worker
,theper
iodofoneyear
shallbecountedf
rom t
hedateofrecei
ptofinput
sbythej
ob-wor
ker.

(
4)Thepr i
ncipalshal
l,subj
ecttosuchcondi
ti
onsandr estr
ict
ionsasmaybe
prescr
ibed,beal
lowedinputt
axcr
edi
toncapit
algoodssenttoajob-
wor
kerf
or
j
ob-work.
(
5)Notwit
hs t
andingany t
hingcontai
nedinc l
ause(
b)ofsub-secti
on(2)ofsect
ion
16,theprinci
pals hal
lbee nt
it
ledtotakec r
edi
tofinputtaxonc api
talgoods
evenifthecapitalgoodsaredirect
lysenttoajob-
workerforjob-
workwit
hout
bei
ngf i
rstbr
oughtt ohispl
aceofbus i
ness.

(
6)Whe rethe capi
talgoods sentforjob-work ar
e notr ecei
ved back by the
princi
palwi
thinape ri
odofthreeyearsofbe i
ngs entout,i
ts hal
lbede eme d
thatsuchcapit
algoodshadbe ensuppl
iedbytheprinci
paltothejob-
wor keron
thedaywhe nthesaidcapi
tal
goodswe resentout:

Provi
dedthatwher
et hecapit
algoodsar
esentdirect
lyt
oaj ob-
worker
,theper
iodof
t
hreeyearsshal
lbecountedfr
om thedat
eofrecei
ptofcapi
talgoodsbythejob-
worker
.

(
7)Nothi
ngc ontai
nedinsub-
sect
ion(
3)ors ub-
sect
ion(6)s hal
lapplyt
omoul
ds
anddies,
jigsandfi
xtur
es,
ort
oolssentoutt
oajob-workerforj
ob-wor
k.

Explanat
ion.
-Fort hepur
poseoft
hissect
ion,“
pri
nci
pal
”meanst
heper
son
ref
erredtoinsect
ion143.

20.
(1)TheI
nputServi
ceDi st
ri
butorshal
ldistri
butet
hecr tofSt
edi at
etaxasStatetax
orint
egr
atedt
axandi nt
egratedtaxasintegrat
edtaxorStatet
ax,bywayofissueof
documentcontai
ning t
heamountofi nputtaxcr edi
tbeing di
str
ibut
ed i
n such
mannerasmaybepr escri
bed.

(
2)TheInputServi
ceDi st
ri
but
ormaydi
str
ibut
ethecr
edi
tsubj
ectt
othef
oll
owi
ng
condi
ti
ons,name l
y:––

(
a)thecredi
tcanbedistr
ibut
edtother eci
pient
sofcr
edi
t agai
nstadocument
cont
aini
ngsuchdetai
lsasmaybeprescr
ibed;

(
b)theamountoft hecr
edi
tdi
str
ibut
edshal
lnotexceedt
heamountofcr
edi
t
avai
labl
efordi
str
ibut
ion;

(c)thecredi
toftaxpai
doninputser
vicesat
tr
ibut
abl
etoar
eci
pientofcr
edi
tshal
l
bedist
ribut
edonlyt
othatr
eci
pient
;

(d)t
hecr edi
toftaxpaidoni nputser
vicesattr
ibutabl
etomorethanoner ecipientof
creditshallbedi stribut
edamongstsuchr eci
pient stowhom thei nputser vi
cei s
attr
ibut
abl eandsuchdi str
ibuti
onshallbepr orataont hebasi
soft het ur
noveri na
Stateort urnoverinaUni ont err
it
oryofsuchr ecipient
,dur
ingt
her elevantper i
od,to
theaggr egat eofthet ur
noverofal lsuchrecipientstowhom suchi nputser viceis
attr
ibut
abl eandwhi char eoperati
onalinthecur rentyear
,dur
ingt hesai drelevant
period;

(
e)thecreditoftaxpai doni nputser vi
cesattri
butabl
et oal lreci
pient
sofcr edi
t
shal
lbedist
ri
butedamongstsuchr eci
pientsandsuchdi st
ri
butionshal lbeprorataon
thebasi
soft heturnoverinaSt ateort urnoveri
naUni onterr
itoryofsuchr ecipi
ent
,
duri
ngtherel
evantper i
od,totheaggr egateoftheturnoverofallr eci
pient
sandwhi ch
areoper
ati
onalinthecurrentyear,duringthesaidrel
evantperi
od.
 Expl
anat
ion.
––Fort
hepur
posesoft
hissect
ion,
––

(
a)t
he“
rel
evantper
iod”shal
lbe––

(i
)iftherecipient
sofcr edi
thaveturnoverint
heirSt
atesorUni
ont
erri
tor
ies
i
nthefinancialyearprecedingtheyearduringwhichcr
editi
stobedi
str
ibut
ed,
t
hesaidfinancialyear
;or

(i
i)ifsomeoral lreci
pientsoft hecreditdonothaveanyt urnoverinthei
r
Stat
esorUni onterr
it
oriesinthefinanci
alyearpr ecedi
ngtheyearduringwhich
thecrediti
stobedistri
buted,thelastquarterforwhichdet
ail
sofsucht ur
nover
ofallthereci
pient
sareavai l
able,previ
oust ot hemonthduri
ngwhi chcredi
tis
tobedi st
ri
buted;

(
b)theexpressi
on“r
eci
pientofcr
edi
t”meansthesuppl
ierofgoodsorservi
ces
orbothhavingthesamePermanentAccountNumberasthatoftheInputServi
ce
Dist
ri
butor
;

(c)theter
m“ t
urnover
”,i
nrelat
iont
oanyr egi
steredper sonengagedinthe
supplyoftaxabl
egoodsaswel lasgoodsnott axableundert hi
sAct,meansthe
valueoftur
nover,r
educedbytheamountofanydutyort axlevi
edunderent
ry84of
ListIoftheSeventhSchedul
etotheConsti
tut
ionandent ry51and54ofLi stI
Iof
thesaidSchedul
e.

21.
Wher etheI nputServi
ceDi st
ri
butordistri
butesthecr editincont raventi
onoft he
provisi
onscont ai
nedinsecti
on20r esul
tinginexcessdi st
ributi
onofcr editt
ooneor
mor ereci
pientsofcredit
,theexcesscr edi
tsodi stri
butedshal lber ecoveredfr
om
suchr eci
pientsalongwit
hi nt
erest
,andt hepr ovi
sionsofsect i
on73orsect i
on74,
ast hecasemaybe,shal l,mutati
smut andis,applyfordeter minat
ionofamountt o
berecovered.

CHAPTER-VI
REGISTRATI
ON

(
22.1)Ever
ysuppl
iermaki
ngat
axabl
esuppl
yofgoodsorser
vicesorbot
hint
heSt
ate
shal
lbel i
ableto beregi
ster
ed underthi
sActi
fhi
saggr
egat
etur
noveri
na
fi
nanci
alyearexceedst
wentyl
akhrupees:
 (
2)Ever
ype rsonwho,onthedayimme diatel
ypr ecedi
ngtheappoi
ntedday,i
s
r
egist
ered orholdsa l
icenseunderan e xist
ing law,shal
lbeliabl
eto be
r
egist
eredundert
hisActwithef
fectf
rom theappointedday.

(
3)Whereabus inessc arr
iedonbyat axablepersonre gi
steredunderthisActis
tr
ansfer
red,
whe theronac countofsuc cessi
onorot her
wis e,t
oanotherperson
asagoingc oncern,thetransfereeorthes uccessor
, asthec asemaybe ,shal
l
be l
iabl
et o be regist
ered wi t
he ffectf r
om t he date ofs uchtransf
eror
successi
on.

(
4)Not withst
andingany t
hingc ontai
nedins ub-s ect
ions(1)and(3),inac as eof
trans f
er purs uant t
o s ancti
on of a s cheme or an ar rangeme nt for
amal gamat i
onor ,asthec asemaybe ,de-me rgeroftwoormor ecompani es
purs uanttoanor derofaHi ghCourt,
Tribunal orother
wise,t
hetransf
e r
ees hal
l
bel i
abl etober egi
ster
e d,wit
he f
fectfrom thedat eonwhi chtheRe gi
strarof
Compani esissuesac erti
fi
cateofincorporati
ongi vi
nge f
fectt
os uchor derof
theHi ghCour torTri
bunal.

Expl
anat
ion.
––Fort
hepur
posesoft
hissect
ion,
––
(i
)theexpr
essi
on“aggr
egat
eturnover
”shal
lincl
udeallsuppli
esmadebythet
axabl
e
person,
whet
heronhi
sownaccountormadeonbehalfofal
lhispri
nci
pal
s;
(i
i)t
hesuppl
yofgoods,aftercomplet
ionofjob-
wor k,byar egi
ster
edjob-wor
kershal
lbe
tr
eatedast
hesupplyofgoodsbythepr i
nci
palrefer
redtoinsection143,andtheval
ueof
suchgoodsshal
lnotbeincludedi
ntheaggregateturnoveroftheregi
ster
edjob-
worker
;

23.(
1)Thefol
lowi
ngpersonsshallnotbeli
abl
etoregi
str
ati
on,namely:
––
(a)anyper sonengagedexclusi
vel
yi nthebusi
nessofsupplyinggoodsorser
vicesor
bot hthatarenotli
ablet
ot axorwhol l
yexemptf r
om taxunderthisActorunderthe
Integrat
edGoodsandServicesTaxAct;
(
b)anagr
icul
tur
ist
,tot
heext
entofsuppl
yofpr
oduceoutofcul
ti
vat
ionofl
and.
(
2) TheGov ernme ntmay ,onther ecomme ndati
onsoft heCounc i
l
, bynoti
fi
c ati
on,
spec i
fyt he cate gor
y ofpe rsons who may be e xemptedf rom obtaini
ng
regi
s t
rati
onunde rthi
sAc t.
24.Notwithstandi
nganyt hi
ngcontai
nedi nsub-
secti
on( 1)ofsecti
on22,t hef
oll
owi ng
categori
esofper sonsshal
lberequir
edtoberegist
eredunderthisAct,-
(
i)personsmaki nganyi nt
er-
Stat
etaxablesuppl
y;
(
ii
)casualt
axabl
eper
sonsmaki
ngt
axabl
esuppl
y;
(
ii
i)per
sonswhoar
erequi
redt
opayt
axunderr
ever
sechar
ge;
(
iv)per
sonwhoar
erequi
redt
opayt
axundersub-
sect
ion(
5)ofsect
ion9;

(
v)non-
resi
dentt
axabl
eper
sonsmaki
ngt
axabl
esuppl
y;

(
vi)per
sonswhoar
erequi
redt
odeductt
axundersect
ion51,whet
herornotsepar
atel
y
r
egi
ster
edundert
hisAct
;

(
vii
)per
sonswhomaket axabl
esupplyofgoodsorser
vicesorbot
honbehal
fofot
her
t
axabl
epersonswhet
herasanagentorot
herwi
se;

(
vii
i)I
nputSer
viceDi
str
ibut
or,
whet
herornotsepar
atel
yregi
ster
edundert
hisAct
;

(i
x)personswhosuppl ygoodsorser vi
cesorboth,ot
hert
hansuppli
esspeci
fi
edunder
sub-
section(5)ofsecti
on9,throughsuchel
ect
roniccommerceoper
atorwhoi
srequi
red
tocol
lecttaxatsourceundersecti
on52;

(
x)ever
yel
ect
roni
ccommer
ceoper
ator
;
(
xi)ever
ypersonsupplyi
ngonl
ineinf
ormat
ionanddatabaseaccessorret
ri
evalser
vices
f
rom aplaceout
sideIndi
atoapersoninI
ndia,
othert
hanaregi
steredper
son;and
(xi
i)suchot
herpersonorcl
assofper
sonsasmaybenot
if
iedbyt
heGover
nmentont
he
r
ecommendat i
onsoftheCounci
l.
(
25.1)Ever
yper
sonwhoi
sli
abl
etober
egi
ster
edundersect
ion22orsect
ion24shal
l
applyforregist
rat
ionwithi
nthi
rtydaysf
rom t
hedat
eonwhi chhebecomesli
able
tor egi
str
ation,in such mannerand subj
ectt
o such condi
ti
ons as may be
prescri
bed:

Provi
dedthatacasualtaxabl
epersonoranon-
resi
denttaxabl
epersonshal
lappl
yfor
r
egistr
ati
onatleastf
ivedayspri
ort
ot hecommencementofbusiness.

Explanati
on.
-Everyper
sonwhomakesasuppl yfr
om theter
ri
tor
ialwatersofIndia
whose nearestpointofthe appr
opr
iat
e base l
ine i
slocat
ed in Ker
ala shal
lt ake
r
egistr
ationinKer
ala.
(
2)A person seeki
ng r
egi
str
ati
on undert
his Actshal
lbe gr
ant
edasi
ngl
e
r
egist
rati
on:
Pr
ovided t
hataper son havi
ng multi
plebusi
nessver
ti
cal
si nt
heStat
emaybe
gr
antedasepar at
er egi
str
ationforeachbusi
nessver
ti
cal
,subj
ectt
osuchcondi
ti
ons
asmaybepr escri
bed.
(
3)Aperson,thoughnotliabl
etober egist
eredundersect
ion22ors ect
ion24may
gethimselfr egi
ster
edv oluntar
il
y,and al lpr
ovisi
ons oft hi
s Ac t
,as ar
e
appl
i
c abl
et oaregi
steredperson,shal
lapplytosuchperson.

(
4)Ape rsonwhohasobt ainedori
sr equir
e dtoobt
ainmorethanonere gi
str
ati
on,
whe t
he rinoneSt at
eorUnionterr
it
or yormorethanoneStateorUni
ont er
rit
ory
shall
,inre spectofeachsuchregi
strati
on,betr
eatedasdi
sti
nctpersonsforthe
purpose softhisAct.

(
5)Whereape r
sonwhohasobt ai
ne dorisrequi
redtoobtai
nr egi
str
ati
oninaStat
e
orUnionterri
tor
yinrespectofane st
abli
shment,hasane stabl
ishmenti
n
anot
herStateorUni
ont er
ri
tor
y ,thensuche st
abli
shme nt
ss hal
lbetreat
edas
est
abli
shmentsofdi
sti
nctpersonsforthepurposesofthisAct.
(
6)Ever
y person shal
lhave a PermanentAc countNumberissued undert
he
I
ncome -
taxAct,
1961inordertobeeli
gibl
eforgrantofr
egi
str
ati
on:

Providedt
hatapersonrequi
redtodeducttaxundersecti
on51mayhave,i
nlieuofa
PermanentAccountNumber ,aTaxDeductionandCol l
ecti
onAccountNumberissued
underthesai
dActinordert
obeeligi
blef
orgrantofregi
str
ati
on.

(
7)Notwithst
andi
nganythi
ngcontai
nedins ub-
secti
on(6)
,anon-r
esi
dentt
axabl
e
per
sonmaybegr ant
edregi
str
ati
onunders ub-
secti
on(1)ont
hebasi
sofsuch
ot
he rdocumentsasmaybeprescri
bed.

(
8)Whe r
eape rsonwhoi sli
abletobere gi
ster
edunde rthi
sAc tfail
stoobtain
regi
str
ati
on,t
hepr operoffi
cermay,wi
thoutprejudi
cetoanyac t
ionwhichmay
betakenunde rthisAc torunderanyotherlaw forthetimebe inginfor
ce,
proceedt
oregist
e rsuchpersoni
nsuchmanne rasmaybepr escr
ibed.

(
9)Not
wit
hst
andi
nganyt
hingcont
ainedi
nsub-
sect
ion(
1),
––

(a)anyspeciali
sedagencyoftheUnit
edNationsOrgani
sati
onoranyMul til
ater
al
Financi
alInsti
tut
ionandOr gani
sati
onnoti
fi
edundertheUni t
edNat ions(Pr
ivi
leges
andI mmuniti
es)Act,1947,
Consul
ateorEmbassyoffor
eigncountr
ies;and

(b)anyot herper
sonorcl assofpersons,
asmaybenotif
iedbytheCommissi
oner,
shallbegr antedaUni queIdentit
yNumberi nsuchmannerandf orsuchpurposes,
i
ncludingrefundoft axesont henotif
iedsuppli
esofgoodsorser
vicesorbot
hrecei
ved
bythem, asmaybepr escri
bed.

(
10) Theregi
str
ati
onort heUni
queIdent
ityNumbershal
lbegrantedorrej
ect
ed
af
terdue ver
if
icat
ion i
ns uch mannerand wi
thi
ns uch per
iod as maybe
pr
escr
ibed.

(
11) A cer
tif
icat
eofregi
str
ati
ons hal
lbei
ssuedi
nsuchf
orm andwi
thef
fect
f
rom suchdateasmaybeprescr
ibed.

(
12) Ar egi
str
ati
onoraUniqueIdent
it
yNumbe rs hal
lbede emedtohav ebeen
gr
antedaftert
heexpi
ryoftheperi
odprescr
ibedunders ub-
sect
ion(10)
,ifno
def
ici
encyhasbeencommunicat
edtotheappli
cantwit
hinthatper
iod.

26.
(1)Thegr antofregi
str
ati
onort heUniqueIdent
it
yNumberundert heCent
ralGoods
andSer vicesTaxActshal lbedeemedt obeagr antofregistr
ationortheUnique
Identi
tyNumberundert hi
sActsubj ecttot heconditi
ont hattheappl i
cati
onfor
regist
rationort heUniqueIdentit
yNumberhasnotbeenr ejectedunderthisAct
withinthet i
mespecifi
edinsub-secti
on(10)ofsecti
on25.

(
2)Notwit
hstandi
ng any t
hing containedins ub-
sect
ion (
10)ofsect
ion 25,any
rej
ecti
onofappli
c at
ionforregistr
ati
onortheUniqueIdent
it
yNumberunde rt
he
Centr
alGoodsandSe rvi
cesTaxAc tshallbede emedtobear ej
ec t
ionof
appli
cati
onforregist
rat
ionunde rthi
sAct.
 27.
(1)Thecer ti
fi
cateofr egi
str
ationissuedtoacasualtaxablepersonoranon- resi
dent
taxable person shal lbe validf orthe peri
od specif
ied i
nt he appl
icati
on for
registrat
ionorni netydaysf rom theeffect
ivedateofr egistr
ati
on,whi cheveris
earli
erandsuchper sonshallmaket axablesuppl
iesonlyaftertheissuanceoft he
certif
icateofregi
strati
on:

Pr
ovidedt hattheproperof
ficermay,onsuff
ici
entcausebeingshownbyt hesaid
taxableperson,extendthesai
dper i
odofni
netydaysbyaf ur
therper
iodnotexceedi
ng
ninetydays.

(
2)Ac asualtaxabl
epersonoranon- r
es i
dentt
axablepersons hall
,attheti
meof
submissionofappli
cati
onforregi
strati
onundersub-secti
on( 1)ofsect
ion25,
mak eanadv ancedeposi
toftaxinanamounte qui
valenttothee sti
matedt
ax
l
iabil
i
tyofs uchper
sonfortheperi
odf orwhi
chtheregi
strati
oni ssought
:

Provi
dedt hatwhereanyext ensi
onoft imeissoughtundersub-sect
ion(1)
,such
t
axablepersonshalldeposi
tanaddit
ionalamountoftaxequi
val
enttotheest
imat
edtax
l
iabi
li
tyofsuchpersonfortheperi
odforwhicht
heextensi
onissought
.

(
3)Theamountde posi
tedundersub-
sect
ion(
2)s hal
lbecr
edi
tedtot
heelect
roni
c
cashledgerofsuchper
sonands hal
lbeuti
li
se di
nthemannerpr
ovi
dedunder
sect
ion49.

28.
(1)Everyr egi
ster
edpersonandaper sont owhom aUniqueIdenti
tyNumberhas
beenassi gnedshallinf
ormt heproperof f
icerofanychangesinthei nf
ormat
ion
furni
shedatt heti
meofr egi
str
ati
onorsubsequentther
eto,
insuchform andmanner
andwi t
hinsuchper i
odasmaybepr escribed.

(
2)Thepr operoff
icermay ,on t
hebasisofinf
ormati
on fur
nished undersub-
sect
ion( 1)orasas cer
tai
nedbyhim,approveorrej
ectame ndme nt
sint he
regi
str
ationpart
icul
arsins uchmannerandwithi
ns uchperiodasmaybe
prescr
ibed:

Providedthatapprovalofthepr operoffi
cershallnotber equi
redinrespectof
amendmentofsuchpar ti
cular
sasmaybepr escribed:
Providedfurt
herthatt heproperofficershal
lnotr ejectt
heappl i
cati
onforamendmenti
n
theregist
rati
onparticular
swi t
houtgi vi
ngtheper sonanoppor tuni
tyofbeinghear
d.

(
3)Any r
e j
ect
ion orapprovalofame ndment
s underthe Centr
alGoods and
Ser
vicesTaxActshal
lbede emedt
obeare j
ect
ionorappr
ovalundert
hisAct
.

29.
(1)Thepr operoffi
cermay,ei
theronhisownmoti
onoronanappl
icati
onfil
edbythe
regi
steredpersonorbyhi slegalhei
rs,i
ncaseofdeat
hofsuchperson,cancelt
he
regi
strati
on,insuchmannerandwi thi
nsuchperi
odasmaybepr escri
bed,havi
ng
regar
dt othecircumstanceswhere,
––

(
a)t
hebusi
nesshasbeendi
scont
inued,t
ransf
err
edful
lyforanyreasoni
ncludi
ng
deat
hofthepr
opri
etor
,amal
gamatedwithotherl
egalent
it
y,demergedorotherwi
se
 di
sposedof
;or

(
b)t
her
eisanychangei
ntheconst
it
uti
onoft
hebusi
ness;or

(
c)thetaxabl
eperson,ot
hert
hanthepersonregist
eredundersub-sect
ion(
3)of
sect
ion25,
isnolongerli
abl
etoberegi
ster
edundersect
ion22orsecti
on24.

(
2)Thepr
operof
fi
ce rmayc ancelt
heregi
str
ati
onofape r
sonf r
om suchdat
e,
i
ncl
udi
nganyr
e t
rospect
ivedat
e,ashemaydeemfi
t,wher
e,––

(a)aregi
ster
edper
sonhascontravened suchpr
ovi
sionsoft
heActort
her
ules
madether
eunderasmaybepr
escr
ibed;or

(
b)aper sonpayi
ngt axundersect
ion10hasnotf
urni
shedr
etur
nsf
ort
hree
consecut
ivet
axper
iods;or

(c)anyregist
eredperson,othert
hanaper sonspeci
fiedi
ncl
ause(
b),hasnot
f
urni
shedret
urnsforacontinuousper
iodofsi
xmonths;or

(
d)anyper son who hast
aken vol
unt
aryregi
str
ati
on undersub-sect
ion (
3)of
sect
ion 25 has notcommenced busi
ness wi
thi
n six months f
rom the date of
regi
str
ati
on;or

(e)r
egistr
ati
onhasbe enobt
ainedbyme ansoff r
aud,wil
fulmisst
atementor
suppressi
onoffact
s:
Provi
dedthattheproperoff
icershal
lnotcancelt
heregi
str
ationwit
houtgivi
ng
thepersonanopportuni
tyofbeinghear
d.

(
3)Thec ancel
lati
onofregistr
ati
onunde rt
hissect
ionshal
lnotaffectt
heliabi
li
tyof
thepe rsontopayt axandot he rduesundert hi
sAc tort odischargeany
obli
gationunde rt
hisAc tortherulesmadethe r
eunderforanype r
iodpriorto
thedateofc ancel
lat
ionwhe t
herornots ucht
axandotherdue saredetermined
befor
eoraf tert
hedat eofcancel
lati
on.

(
4)Thecancel
lat
ionofr
egi
str
ati
onundertheCe ntr
alGoodsandServicesTaxAct
shal
lbedeeme dt
obeacancell
ati
onofregi
strat
ionundert
hisAct
.

(
5)Ev er
yr egist
eredpe rsonwhos er egi
str
ationi scancel
leds hallpayanamount ,
by way ofde bitint he el
ect
ronicc reditledge rore l
ectronicc ashle dger
,
equivalenttothec redi
tofinputtaxinrespe ctofinput
she l
dins t
ockandi nputs
containedins e mi-
fi
nishedorfinishedgoodshe ldinstockorc api
talgoodsor
plantand mac hi
neryon t he dayi mme diatel
ypr ecedi
ng t he date ofs uch
canc ell
ati
onort heout puttaxpay abl
eons uchgoods ,whi cheverishi gher
,
calculatedinsuc hmanne rasmaybepr es cr
ibed:

Provi
dedt hatincaseofcapit
algoodsorplantandmachiner y,thet axabl
eperson
shallpayanamountequalt othei
nputtaxcr
edi
ttakenonthesai
dcapi talgoodsorplant
andmachi nery,reducedbysuchpercent
agepoi
ntsasmaybepr escribedort hetaxon
thetransact
ionval ueofsuchcapi
talgoodsorplantandmachiner yundersect i
on15,
whi
cheveri
shi
gher
.

(
6) Theamountpay ableundersub-secti
on( 5)s hallbec al
c ul
atedi nsuc hmanne r
asmaybepr escri
bed.
30.(1)Subj ecttosuchconditi
onsasmaybepr escribed,anyregist
eredper son,whose
regist
rationiscancell
edbytheproperoff
iceronhi sownmot i
on,mayappl ytosuch
offi
cerf orrevocati
onofcancell
ati
onoft her egistr
ati
oni nthepr escr
ibedmanner
withinthirt
ydaysf r
om thedat
eofservi
ceoft hecancellati
onorder.

(
2) Thepr ope roffi
cermay ,ins uchmanne randwi t
hinsuc hperiodasmaybe
prescribe d,byorder,ei
therrevokec ancel
lat
ionoft heregist
rat
ionorr ej
ectthe
application:
Providedt hattheappl
icat
ionforrevocationofcancell
ati
onofregi
str
ationshal
lnotbe
r
ejectedunl esstheappli
canthasbeengi venanoppor t
unit
yofbeingheard.

(
3)Ther evocat
ionofc ancel
lat
ionofregi
str
ati
onundertheCe nt
ralGoodsand
Servi
ces Tax Acts hal
lbe de emedto be a r
evocat
ion ofcancel
lat
ion of
regi
str
ationundert
hisAct.

CHAPTER-VI
I
TAXI
NVOI
CE,
CREDITANDDEBI
TNOTES

31.
(1)Ar
egi
ster
edper
sonsuppl
yingt
axabl
egoodsshal
l,
bef
oreoratt
het
imeof
,––

(a)removalofgoods f
orsuppl
ytot
he r
eci
pient
,wher
ethe suppl
yinvol
ves
movementofgoods;
or

(
b)del
iver
yofgoodsormaki
ngavai
labl
ether
eoft
other
eci
pient
,inanyot
hercase,

i
ssueataxinvoi
ceshowingthedescr
ipt
ion,
quanti
tyandval
ueofgoods,
thet
axchar
ged
t
hereonandsuchotherpar
ti
cular
sasmaybepr escri
bed:

Provi
ded thattheGovernmentmay,on ther ecommendati
onsoft heCouncil
,by
noti
fi
cat
ion,speci
fyt
hecategor
iesofgoodsorsuppli
esi
nrespectofwhichat
axinvoice
shal
lbeissued,wi
thi
nsuchtimeandinsuchmannerasmaybepr escri
bed.

(
2)Ar egi
s ter
ed person supplying t
axabl
es er
vicess hall,before oraf t
ert
he
provi
sionofs er
vicebutwithinaprescri
bedper
iod,i
ss ueat axinvoice,
showi
ng
thedes cr
ipti
on,val
ue,taxc hargedther
eonands uchot herparti
cularsasmay
bepres cr
ibed:

Provi
ded t
hattheGovernmentmay,on t her
ecommendati
onsoftheCouncil,by
not
if
icat
ionandsubjectt
osuchconditionsasmaybementionedt
her
ein,speci
fythe
cat
egori
esofser
vicesinr
espectofwhi
ch––

(a)anyotherdocumenti
ssuedi
nrel
ati
ont
othesuppl
yshal
lbedeemedt
obeat
ax
i
nvoice;or
 (
b)t
axi
nvoi
cemaynotbei
ssued.

(
3)Not
wit
hst
andi
nganyt
hingcont
ainedi
nsub-
sect
ions(
1)and(
2)––

(
a)ar egister
ed person may,wi thi
n onemont hf r
om thedat eofi ssuanceof
cert
if
icateofr egi
str
ati
onandi nsuchmannerasmaybepr escr
ibed,issuear evised
i
nvoice againstt he i
nvoice alreadyissued dur
ing t
he peri
od beginning witht he
eff
ectivedateofr egi
strati
ont i
llthedateofissuanceofcerti
fi
cateofr egistr
ati
ont o
him;

(b)ar egisteredpersonmaynoti ssueat axinvoiceiftheval ueofthegoodsor

servicesorbot hsuppliedisl
essthantwohundr edr upeessubjecttosuchcondit
ions
andi nsuchmannerasmaybepr escri
bed;
(c)ar egisteredpersonsuppl
yingexempt edgoodsorservicesorbothorpayingtax
undert hepr ovisionsofsecti
on10shallissue,i
nsteadofat axinvoice,
abil
lofsupply
containingsuchpar ti
cular
sandinsuchmannerasmaybepr escr
ibed:

Pr
ovidedt
hatt
heregi
ster
edper
sonmaynotissueabil
lofsupplyift
heval
ueofthe
goodsorservi
cesorbot
hsuppli
edisl
essthant wohundr
edr upeessubj
ecttosuch
condi
ti
onsandinsuchmannerasmaybepr
escribed;

(d)ar egisteredpersonshal l
,onr eceiptofadvancepaymentwi t
hr especttoany
suppl yofgoodsorser vicesorbot h,i
ssuear eceiptvoucheroranyot herdocument,
containi
ng such par ti
culars as may be pr escribed,evidencing r eceiptofsuch
payment ;
(e)wher e,onr ecei
ptofadvancepaymentwi thr especttoanysuppl yofgoodsor
servicesorbot ht heregisteredpersoni ssuesar eceiptvoucher,butsubsequent l
yno
suppl yi
smadeandnot axi nvoicei sissuedinpur suancet hereof,thesai dregist
ered
personmayi ssuet otheper sonwhohadmadet hepayment , aref
undvoucheragai nst
suchpayment ;
(f)aregisteredpersonwhoi sli
abletopayt axundersub- secti
on( 3)orsub- sect
ion
(4)ofsect i
on9shal li
ssueani nvoiceinrespectofgoodsorser vi
cesorbot hreceived
byhi mf rom t hesupplierwhoi snotr egist
eredont hedateofr eceiptofgoodsor
servicesorbot h;

(g)aregi
ster
edpersonwhoi
sliabl
etopaytaxundersub-
secti
on(3)orsub-sect
ion(
4)of
secti
on9shalli
ssueapaymentvoucheratt
heti
meofmaki ngpaymenttothesuppli
er.

(
4)Inc ase ofconti
nuous supply ofgoods,whe r
es uccessi
vestatement
s of
accountsors uccessi
vepay mentsareinvol
ved,theinvoi
ceshallbeissued
bef
or eoratthetimee achs uchstat
ementisissuedor,asthecasemaybe ,
eachs uchpaymentisrecei
ved.

(
5)Subjectt
otheprovisi
onsofcl
ause(
d)ofsub-
sect
ion(
3),
incaseofcont
inuous
suppl
yofs er
vices,
––

(
a)wher
etheduedateofpaymenti
sascert
ainabl
efr
om t
hecont
ract
,thei
nvoi
ce
shal
lbei
ssuedonorbef
oret
heduedateofpayment;
 (
b)wheretheduedateofpaymentisnotascert
ainabl
efrom thecont
ract
,the
i
nvoiceshal
lbei
ssuedbef
oreoratt
het
imewhent hesuppli
erofser
vicer
ecei
vesthe
payment;

(c)wherethepaymentisli
nkedtothecompletionofanevent
,theinvoi
ceshallbe
i
ssuedonorbef or
ethedateofcomplet
ionofthatevent
.
(
6)Inac asewhe rethes upplyofse r
vicesc easesunderac ontr
ac tbef
oret he
completi
onoft hesupply,theinvoices hal
lbei ssuedatt het i
mewhe nt he
supplyceas esands uc hinvoi
ces hal
lbei s suedtothee xtentofthes upply
madebe foresuc hcessati
on.

(
7)Notwit
hs tandinganyt
hingc ontai
nedins ub-sect
ion(1),wheret
hegoodsbe i
ng
sentort ake nonapprovalf orsaleorre t
urnar eremov edbefor
et hesuppl
y
t
ak esplac e,t
heinvoi
ces hallbeissuedbe foreoratt heti
meofs upplyorsi
x
monthsf rom thedat
eofre mov al
,whicheverisearl
ier
.

Expl
anat
ion.
––Fort
hepur
posesoft
hissect
ion,t
heexpr
essi
on“
taxi
nvoi
ce”shal
l
i
ncl
udeanyr
evi
sedi
nvoi
cei
ssuedbyt
hesuppl
ieri
nrespectofasuppl
ymadeear
li
er.

32.
(1)Apersonwhoisnotaregi
ster
edper
sonshal
lnotcol
lecti
nrespectofanysuppl
y
ofgoodsorser
vicesorbot
hanyamountbywayoftaxunderthi
sAct.

(
2)Noregi
ster
edper
s onshal
lcol
lecttaxexcepti
naccor
dancewi
tht
hepr
ovi
sions
oft
hisActort
herulesmadether
e under
.

33.
Notwithstandinganythingcont
ainedinthisActoranyot herlawfort
heti
mebei ngi
n
for
ce,wher eanysuppl yismadef oraconsi derati
on,ever
ypersonwhoisl i
ablet
o
payt axf orsuchsuppl yshal
lpr ominentl
yi ndicat
ei nalldocument
sr el
ati
ngto
assessment ,taxinvoiceandotherlikedocument s,t
heamountoft axwhichshall
for
m par tofthepriceatwhichsuchsuppl yi
smade.

34.
(1)Wher eat axinvoicehasbeeni ssuedforsupplyofanygoodsorservicesorboth
andt het axabl
eval ue ort axchar gedinthattaxinvoiceisfoundtoexceedt he
taxablevalueort axpayablei nrespectofsuchsupply, orwher
ethegoodssuppl i
ed
arereturnedbyt herecipient,orwher egoodsorservi
cesorbothsuppli
edar efound
tobedef i
cient
,ther egi
steredperson,whohassuppl iedsuchgoodsorser vi
cesor
both,mayi ssuet otherecipientacr edi
tnotecontai
ningsuchparti
cul
arsasmaybe
prescri
bed.

(
2)Anyre gi
steredper
sonwhoi ssuesacre di
tnoteinr
elati
ont oas uppl
yofgoods
orservicesorbothshalldeclar
ethede tai
lsofsuchcreditnoteintheret
urnfor
themont hdur i
ngwhic hs uchc r
edi
tnot ehasbe enissuedbutnotl aterthan
Septembe rfoll
owi
ngt hee ndoft hefinanci
alyearinwhi chs uchsupplywas
made ,ort hedateoff urnishi
ngoft her el
evantannualr et
urn,whicheveris
earl
ier
,and t hetaxliabil
ityshallbeadj ust
edi ns uch manne rasmaybe
prescr
ibed:

Pr
ovi
dedthatnor
educt
ioninoutputt
axl
iabi
li
tyoft
hesuppl
iershal
lbeper
mit
ted,i
f
t
heinci
denceoftaxandinter
estonsuchsupplyhasbeenpassedont oanyother
per
son.

(
3)Whe reataxinvoi
c ehasbe e nissuedforsuppl yofanygoodsors e r
vicesor
bothandt het
axablev al
ueort axchar
gedinthatt axi
nvoi
ceisfoundt obeless
thanthetaxabl
ev alueort axpay abl
einrespe ctofsuchsuppl
y,theregist
ered
person,whohass uppli
eds uchgoodsors ervi
cesorboth,shal
lissuet othe
reci
pientadebi
tnot econtainingsuchparti
cularsasmaybepr escr
ibed.

(
4)Anyregi
steredper
sonwhoissue sadebitnot
einre l
ati
ont oasuppl
yofgoods
orser
vicesorbothshal
ldecl
arethedetail
sofsuchde bitnot
eintheret
urnfor
themonthdur i
ngwhichsuchde bi
tnotehasbe enissuedandt hetaxl
iabi
l
ity
shal
lbeadjustedi
nsuchmanne rasmaybepr escr
ibed.

Expl
anat
ion.
––Fort
hepur
posesoft
hisAct
,theexpr
essi
on“
debi
tnot
e”shal
lincl
udea
suppl
ement
aryi
nvoi
ce.

CHAPTERVI
II
ACCOUNTSANDRECORDS

35.(1)Ever yregistered per

son shal
lkeep and maintai
n,athis pr
inci
palplace of
business,asment i
onedinthecerti
ficat
eofregi
str
ati
on,atr
ueandcorrectaccount
of-
(a)producti
onormanuf actur
eofgoods;
(b)inwardandout wardsupplyofgoodsorservi
cesorboth;
(c)stockofgoods;
(d)inputtaxcreditavail
ed;
(e)outputtaxpayabl eandpaid;and
(f)suchotherpar t
icular
sasmaybepr escri
bed:

Providedthatwheremor ethanonepl aceofbusinessisspecifi

edinthecerti
fi
cateof
registr
ation,t
heaccountsr el
ati
ngt oeachplaceofbusinessshallbekeptatsuchplaces
ofbusi ness:
Providedfurt
herthattheregist
eredpersonmaykeepandmai ntai
nsuchaccountsand
otherpar ti
cul
arsinelect
ronicforminsuchmannerasmaybepr escri
bed.

(
2)Everyownerorope r
atorofwarehouseorgodownoranyot herpl
aceus edfor
stor
age ofgoods and e ver
yt r
ansport
er,i
rrespect
ive ofwhe t
herhe i sa
regi
ster
edpersonornot ,shal
lmaintai
nrecordsoft hec onsi
gner
,cons i
gnee
andotherr
elevantdet
ail
softhegoodsinsuchmanne rasmaybepr escr
ibed.

(
3)TheCommissionermaynoti
fyaclassoft
axabl
eper
sonstomaint
ainaddi
ti
onal
account
sordocume nt
sforsuchpur
poseasmaybes peci
fi
edt
herei
n.

(
4)WheretheCommi ssi
onerc onsi
der
st hatanyc l
assoftaxabl
epe rsonsisnotin
aposit
iontok eepandmai ntai
nac countsinaccor
dancewi t
ht heprovi
sionsof
t
hissecti
on,hemay ,forreasonstober ecordedi
nwrit
ing,permitsuchclassof
t
axabl
epe rsonstomai nt
ainaccountsins uchmannerasmaybepr escr
ibed.
(
5)Everyregist
eredpe rsonwhos eturnoverduringaf i
nanc i
alyearexceedst he
prescr
ibedli
mits hallgethisaccountsaudit
edbyac hart
eredaccountantora
costaccountantands hal
lsubmitac opyoft heaudit
e dannualaccounts,the
reconci
li
ati
ons tateme ntundersub-sect
ion(2)ofs ecti
on44ands uchot her
docume nt
sins uchform andmanne rasmaybepr escri
bed.

(
6)Subjecttot heprovisi
onsofc l
ause( h)ofs ub-sect
ion(5)ofs ecti
on17,whe r
e
theregisteredpe rsonfail
st oac countfort hegoodsors ervi
ce sorbot hi n
accordanc ewitht hepr ovi
s i
onsofs ub-secti
on (1),thepr operof fi
cers hall
deter
mi netheamountoft axpay ableont hegoodsors ervi
ce sorbot hthatare
notac countedfor,asifs uchgoodsors e r
vicesorbot hhadbe ens uppli
edby
suchpe rsonandt heprov i
sionsofs ect
ion73ors ecti
on74, asthec asemay be,
shall
,mut at
ismut andis,
appl yfordet
e r
minat i
onofs uchtax.

36.
Everyregist
eredper sonrequir
edt okeepandmai ntai
nbooksofaccountorot her
recordsinaccor dancewit
hthepr ovi
sionsofsub-
secti
on(1)ofsecti
on¬¬¬35shall
retai
nthem untiltheexpi
ryofseventytwomonthsfrom t
heduedateoffur
nishi
ngof
annualretur
nf ortheyearpert
aini
ngtosuchaccountsandrecords:

Pr ovidedthatar egisteredperson,whoisapar tytoanappealorr evisi

onoranyot her
proceedi ngsbeforeanyAppel l
ateAuthori
tyorRevisionalAuthor
ityorAppel l
ateTri
bunal
orcour t
,whetherfiledbyhi m orbytheCommi ssi
oner,orisunderi nvesti
gati
onf oran
offence underChapt erXI X,shallretai
nt he books ofaccountand ot herrecor ds
pertaining tot he subj ectmat terofsuch appealorr evi
sion orpr oceedings or
i
nvest igati
onforaper iodofoneyearaf t
erfinaldisposalofsuchappealorr evi
sionor
proceedi ngsorinvesti
gat i
on,orfortheperi
odspecifiedabove,whicheverislat
er.

CHAPTER-I
X
RETURNS

37.
(1)Ever yregist
eredper son,ot herthananI nputSer viceDi str
ibutor,anon-resi
dent
taxableper sonandaper sonpayi ngt axundert hepr ovisionsofsect i
on10or
section51orsect ion52,shal lfurnish,el
ectr
onically,insuchf orm andmanneras
maybepr escri
bed,thedet ail
sofout wardsuppliesofgoodsorser vi
cesorbot h
effectedduringat axper i
odonorbef oret
hetenthdayoft hemont hsucceedingthe
saidt axperiodandsuchdet ai
lsshal lbecommuni cat edtot her eci
pientofthesaid
suppl i
eswithinsucht i
meandi nsuchmannerasmaybepr escribed:

Provi
dedthattheregi
ster
edpersonshal
lnotbeal
lowedt
ofur
nisht
hedet
ail
sofout
war
d
suppli
esduringtheper i
odfrom theel
eventhdaytothefi
ft
eent
hdayoft hemont
h
succeedi
ngthetaxperi
od:

Provi
dedfurt
hert
hatt
heCommissionermay,f
orreasonstoberecor
dedinwri
ti
ng,by
not
if
icat
ion,ext
endthet
imeli
mitforfurni
shi
ngsuchdet ai
lsf
orsuchclassoftaxabl
e
per
sonsasmaybespecifi
edt
herei
n:

Pr
ovi
dedal
sot
hatanyext
ensi
onoft
imel
imi
tnot
if
iedbyt
heCommi onerofcent
ssi ral
t
axshal
lbedeemedt
obenot
if
iedbyt
heCommi
ssi
oner
.

(
2)Everyregist
eredpe rsonwhohasbe enc ommuni catedthede tailsundersub-
secti
on( 3)ofse cti
on38ort hede tail
spe r
tainingt oinwar dsuppl i
esofInput
Servi
ceDi st
ri
but orundersub-sect
ion( 4)ofs e ct
ion38,s halle i
theracceptor
rej
ectthede t
ail
ss oc ommunicated, onorbe foret hes event
e enthday,butnot
befor
et hefi
fteenthday,oft
hemont hs ucceedingt hetaxpe r
iodandt hede t
ail
s
fur
nishedbyhi m undersub-
secti
on( 1)s hal
lstandame nde dacc ordi
ngl
y.

(
3)Anyr egi
ster
edpe rson,whohasf urni
she dthede t
ail
sunde rsub-sec t
ion( 1)f
or
anyt axpe ri
od and whi ch hav er emaine d unmatched unders ec t
ion 42 or
secti
on43, shall,upondisc overyofanye rr
ororomi ssi
ont her
e i
n, r
ec t
if
ys uch
err
ororomi ss i
oni ns uchmanne rasmaybepr escri
bed,ands hallpayt hetax
andinterest
,ifany ,incaset her
ei sas hortpay mentoftaxonac countofs uch
err
ororomi ssion,inthereturntobef urnishedforsuchtaxpe r
iod:

Provi
dedt hatnor ecti
ficationofer r
ororomi ssioninr espectoft hedet
ail
sfurni
shed
undersub-secti
on( 1)shallbeal l
owedaf t
erfurni
shingoft heretur
nundersecti
on39for
themont hofSept emberf ollowingt heendoft hefinancialyeartowhichsuchdetail
s
pert
ain,
orf ur
nishi
ngoft her elevantannualr
eturn,whicheverisearl
ier
.

Expl anat i
on.––Fort hepur posesoft hisChapt er,theexpr ession“detail
sofout war d
supplies”shal lincludedetailsofinvoices,debitnot es,creditnot esandr evisedi
nvoices
i
ssuedi nr el
ationtoout wardsuppliesmadedur inganyt axper iod.
38.(1)Ever yr egister
edper son,otherthananI nputSer vi
ceDi stri
but
ororanon- resident
taxabl eper sonoraper sonpayingt axundert hepr ovisionsofsect i
on10orsect ion
51orsect i
on52,shal lverif
y,val i
date,modi fyordel ete,ifrequired,thedet ail
s
relatingt oout wardsuppl iesandcr editordebi tnotescommuni catedundersub-
sect i
on( 1)ofsect i
on37t opr eparet hedetailsofhi si nwar dsuppliesandcr editor
debi tnot esandmayi ncludet herein,t
hedet ail
sofi nwar dsuppliesandcr editor
debi tnotesr eceivedbyhi mi nrespectofsuchsuppl iest hathavenotbeendecl ared
byt hesuppl i
erundersub- secti
on( 1)ofsection37.

(
2)Everyre gister
e d pe r
son,ot hert han an I nputSe rviceDi stri
butororanon-
resi
dentt axablepe rsonorape r
sonpay ingt axunde rthepr ovisi
onsofs ect
ion
10ors ec t
ion51ors ection52, s hallfurnish,e l
ectronical
ly,thede tail
sof
i
nwar ds uppliesoft axablegoodsors er
vic esorboth, i
nc l
udinginwar dsupplies
ofgoodsors e r
vicesorbot honwhi cht het axispay ableonr eversec harge
basisunde rthisAc tandi nwards uppliesofgoodsors ervi
c esorbot htaxable
undertheI ntegratedGoodsandSe rvi
cesTaxAc toronwhi chintegratedgoods
ands ervicest axispay ableunde rse cti
on3oft heCus t
omsTar if
fAc t,1975,
andc reditorde bitnote sr ecei
ve dinr e spectofs uchs uppliesduringat ax
peri
odaf t
ert het enthdaybutonorbe forethef i
fteenthdayoft hemont h
succeedingt hetaxpe r
iodi nsuchf orm andmanne rasmaybepr escri
be d:

Provi
ded thatthe Commissionermay,f orreasons t
o be r
ecorded i
n wr
it
ing,by
not
if
icat
ion,extendt
het i
mel i
mi tforf
urni
shingsuchdetail
sforsuchclassoftaxabl
e
per
sonsasmaybespeci f
iedt
her ei
n:
 Pr
ovi
dedf
urt
hert
hatanyext
ensi
onoft
imel
imi
tnot
if
iedbyt
heCommi
ssi
onerof
cent
ralt
axshal
lbedeemedt
obenot
if
iedbyt
heCommi
ssi
oner
.

(
3)Thede tai
lsofs uppl
iesmodif
ied,de l
eted ori
ncl
uded byther eci
pientand
fur
nished unders ub-
sect
ion (2)shal
lbe c ommunicatedtot he suppl
i
e r
concernedinsuchmannerandwi t
hinsuchtimeasmaybepr escr
ibed.

(4)Thede t
ailsofs uppliesmodi fied,de let
e dori nclude dbyt her ecipienti nt he
ret
urnf urnishedunde rs ub-section( 2)ors ub- section( 4)ofs ecti
on39s hal lbe
communi catedt othes uppl ierconc ernedi ns uc hmanne randwi thins uc ht i
me
asmaybepr es cri
bed.
(5)Anyr egisteredpe rson,whohasf urnishedt hede tailsunde rs ub-se cti
on( 2)for
anyt axpe ri
od and whi ch hav er emai ne d unmat che d unde rs e cti
on 42 or
secti
on43, shall,upondi scov er
yofanye rr
ororomi s si
ont he rei
n, rectif
ys uch
err
ororomi ss i
oni nt het axpe rioddur i
ngwhi chs uche r
rororomi ssioni s
noti
c edins uc hmanne rasmaybepr escribed,ands hallpayt het axand
i
nterest,i
fany , i
nc aset herei sas hortpay me ntoft axonac c ountofs uc he rr
or
oromi ssi
on, inther eturntobef urnishe dfors uc ht axpe riod:
Provi
dedt hatnor ect
ifi
cationofer rororomi ssioni nrespectoft hedet ail
sf urnished
undersub-section(2)shallbeal lowedaf t
erfurnishingoft hereturnundersect i
on39f or
themont hofSept emberf oll
owingt heendoft hef i
nanci alyeart owhi chsuchdet ail
s
pert
ain,orfur
nishingoft herelevantannualr eturn,whi cheveri searli
er.

39.
(1)Everyregist
eredperson, otherthananI nputSer viceDi str
ibut
ororanon- resi
dent
taxabl
eper sonoraper sonpayi ngtaxundert hepr ovisionsofsect i
on10orsect i
on
51orsect i
on52shal l,f
orever ycalendarmont horpar tthereof,f
urni
sh,insuchf orm
andmannerasmaybepr escribed,areturn,electr
oni call
y,ofinwardandout ward
suppli
esofgoodsorser vi
cesorbot h,i
nputt axcredi tavail
ed,taxpayable,taxpaid
andsuchot herpart
icularsasmaybepr escribedonorbef orethet wenti
ethdayof
themont hsucceedingsuchcal endarmont horpar tther eof.

(
2)Ar egi
steredpersonpay ingt axunde rtheprovi
sionsofs ect
ion10s hal
l,f
or
eachquar t
e rorpar tthereof,furnish,insuchform andmanne rasmaybe
prescr
ibed,areturn,el
e ct
ronicall
y,oft ur
noveri
nt heStat
e,inwardsuppli
esof
goodsors ervi
cesorbot h, t
axpay ableandtaxpaidwit
hine i
ghteendaysaft
er
theendofs uchquar t
er.

(
3)Everyr
e gi
ster
edpe rsonr equi
redtodeductt
axatsourceundert
heprovisi
ons
ofsect
ion51s hal
lfurnish,i
ns uchfor
m andmannerasmaybepr escr
ibed,a
ret
urn,el
ectr
onical
ly,forthemont hinwhi
chsuchdeducti
onshavebeenmade
wit
hintendaysaf t
erthee ndofs uchmont
h.

(
4)Everytaxabl
epersonregi
steredasanI nputSer
viceDist
ri
butorshal
l,f
orever
y
cal
endarmont horpartthereof
,furni
sh,insuchform andmanne rasmaybe
prescr
ibed,aret
urn,el
ectr
onical
ly,wit
hinthi
rt
eenday saft
erthee ndofsuch
month.
(
5)Ever
yr egi
ster
ednon- r
esi
denttaxabl
epe rsonshall
,foreverycalendarmonthor
par
tthe r
eof,f
urni
s h,i
nsuc hfor
m andmanne rasmaybepr escr
ibed,ar
eturn,
el
ectroni
call
y,wit
hintwe nt
yday saft
erthee ndofac alendarmont horwithi
n
sevenday saft
erthelastdayofthepe ri
odofr egi
strat
ions peci
fi
edundersub-
sect
ion(1)ofsect
ion27,whicheveri
se ar
li
e r
.

(
6)TheCommi ssi
one rmay,forreasonstober ecordedinwri
ti
ng,bynoti
fi
cat
ion,
ext
endthet i
mel i
mi tf
orfurni
shingtheret
urnsunde rt
hissect
ionf
orsuchcl
ass
ofr
e gi
ster
edpe rsonsasmaybes pecif
iedther
ein:

Provi
dedthatanyext
ensionofti
meli
mitnoti
fi
edbyt
heCommi onerofcent
ssi ralt
ax
shal
lbedeemedt obenot
if
iedbytheCommissi
oner.

(
7)Everyregist
eredpe rson,whoisrequi
redtofur
nishar et
urnundersub-
sect
ion
(1)ors ub-sect
ion( 2)orsub-sect
ion(3)orsub-sect
ion(5)
,shallpaytothe
Governme ntthetaxdueaspe rsuchret
urnnotlat
erthanthel
astdateonwhich
heisrequiredtofurnishsuchr
eturn.

(
8)Everyregi
ster
edpersonwhoisr equi
redtof
urni
shar et
urnundersub-sect
ion
(1)orsub-
se ct
ion(
2)shal
lfur
nishare t
urnf
orever
ytaxperi
odwhe therornot
anys uppl
i
e sofgoodsors er
vicesorbothhavebeenmadedur ingsuc htax
peri
od.

(
9)Subje cttot hepr ov i
sionsofs e ct
ions37and38, ifanyre gi
ster
edpe rsonaf t
er
fur
ni shingar eturnunde rs ub-sec ti
on( 1)orsub-secti
on( 2)sub-sect
ion( 3)or
sub-se ction (4)ors ub-section ( 5)di scover
s any omi ssi
on ori ncorr
ect
particularst herein,ot hert han asa r esul
tofs crut
iny,audit
,inspe ct
ion or
enforc eme ntac ti
v i
tybyt het axaut hori
ti
es,hes hallrect
ifysuchomi ssi
onor
i
ncor rec tpar t
icularsi nther eturnt obef ur
nishedf orthemont horquar t
er
duringwhi chs uc homi ss i
onori nc or
rectpart
icularsarenot i
ced,s ubjectto
payme ntofi nterestunde rthisAc t:

Provi
dedt hatnosuchr ecti
fi
cati
onofanyomi ssionorincor
rectpart
icul
arsshal
lbe
al
lowedaftertheduedat eforf
urni
shingofr et
urnforthemonthofSeptemberorsecond
quart
erfol
lowingtheendoft hefi
nancialyear,
ortheactualdat
eoffurni
shingofrel
evant
annualr
eturn,whicheveri
searl
ier
.

(
10) Aregi
ster
edpersonshal
lnotbeal
lowedtofur
nishar
e t
urnforataxper
iodi
f
t
heret
urnforanyofthepr
evi
oustaxperi
odshasnotbeenfur
nishedbyhi
m.

40.
Everyregisteredpersonwhohasmadeout wardsuppliesintheperi
odbetweenthe
dateonwhi chhebecamel iabl
etoregi
str
ati
ontil
lthedateonwhi chregi
str
ati
onhas
beengr antedshalldeclar
et hesameinthefir
stretur
nf ur
nishedbyhim aft
ergr
ant
ofregi
stration.

41.
(1)Everyregist
eredper
sonshal
l,subj
ecttosuchconditi
onsandr est
ri
cti
onsasmay
bepr escri
bed,beenti
tl
edtot
aket hecredi
tofel
igi
bleinputtax,assel
f-
assessed,i
n
hisreturnandsuchamountshallbecredit
edonapr ovi
sionalbasist
ohiselect
roni
c
credi
tledger.
 (
2)Thecreditr
efer
redtoi
ns ub-
sect
ion(1)shal
lbeut
il
isedonl
yforpaymentof
sel
f-
assessedout
puttaxasperther
e t
urnref
err
edtoi
nthes ai
dsub-
secti
on.

42.
(1)Thedetai
lsofever
yinwar
dsuppl yfur
nishedbyar egist
eredper
son(
her
eafteri
n
thi
ssecti
onrefer
redtoasthe“reci
pient
”)forat axper
iodshall
,i
nsuchmannerand
withi
nsuchtimeasmaybepr escri
bed,bemat ched––

(a) with the cor responding detai

ls of out
ward supplyf ur
nished by t he
cor
respondi
ngr egi
steredper son(her
eaft
erint
hissecti
onref
err
edtoast he“suppl
ier”
)
i
nhisvali
dreturnforthesamet axperi
odoranyprecedingt
axperi
od;

(b)wi
tht
heintegrat
edgoodsandservi
cest
axpai
dundersect
ion3oft
heCust
oms
Tar
if
fAct
,1975inrespectofgoodsi
mport
edbyhi
m;and

(
c)f
ordupl
icat
ionofcl
aimsofi
nputt
axcr
edi
t.

(
2)Thec lai
m ofi nputtaxc redi
tinr espectofinvoicesorde bitnotesrel
ati
ngto
i
nwar ds upplythatmat chwi t
hthede tai
lsofcorrespondingoutwards uppl
yor
wit
ht heintegrat
edgoodsands er
vicestaxpaidunde rsecti
on3oft heCustoms
Tari
ffAc t,1975inr espectofgoodsi mportedbyhi ms hallbefinal
lyaccept
ed
ands uchac ceptances hallbec ommuni cated,ins uchmanne rasmaybe
prescri
be d,t
other eci
pient
.

(
3)Wheretheinputt
axc redi
tcl
aimedbyar eci
pienti
nrespectofani nwardsupply
i
sine xcessoft hetaxde cl
aredbythes uppli
erforthes ames uppl
yort he
out
war dsupplyi s notdeclar
ed by t
he s uppl
ierin hi
sv al
i
dr et
urns,the
di
screpancyshallbec ommunicat
edtoboths uchpersonsi nsuchmanne ras
maybepr escr
ibed.

(
4)Thedupl i
cat
ionofcl
aimsofinputt
axc redi
tshal
lbecommuni
cat
edt
othe
reci
pienti
nsuchmannerasmaybeprescr
ibed.

(
5)Theamounti nres pectofwhi
chanydi scr
epanc yiscommuni catedundersub-
sect
ion(3)andwhi chisnotr
ectif
iedbythes uppli
erinhisvali
dr et
urnforthe
monthinwhi chdis cr
epancyi
sc ommunicateds hal
lbeadde dtotheoutputtax
l
iabi
li
tyoftherecipient,i
nsuchmanne rasmaybepr escri
bed,inhisret
urnfor
themonths ucceedingthemonthinwhichthedis cr
epancyiscommuni cat
ed.

(
6)Theamountc l
aimed asinputt
axc redi
tthatisf ound to bei nexcesson
accountofdupl
icat
ionofclai
msshallbeaddedtotheout puttaxli
abi
l
ityofthe
reci
pienti
nhisr
eturnfort
hemonthinwhichtheduplicat
ionisc ommunicat
ed.

(
7)Therecipi
entshal
lbeeli
gibl
etoreduc e,
f r
om hisoutputt
axli
abi
li
ty,t
heamount
addedunde rsub-
secti
on(5),i
fthes upplierdecl
aresthedet
ail
softhei nvoi
ce
ordebitnotei
nhisv ali
dretur
nwi t
hint het i
mes peci
fi
edinsub-sect
ion(9)of
sect
ion39.
(
8)Arecipi
enti
nwhos eoutputtaxliabi
li
tyanyamounthasbe enaddedunde rsub-
sect
ion(5)ors ub-
secti
on(6),shallbeli
abl
etopayint
erestattherat
es peci
fied
undersub-secti
on(1)ofs ecti
on50ont heamountsoadde df r
om thedateof
avai
li
ngofc reditt
il
lthecorr
e spondingaddi
ti
onsaremadeunde rt
hes ai
ds ub-
sect
ions.

(
9)Whe r
eanyr educt
ioni
nout puttaxliabil
i
tyisaccept
edunde rsub-
sect
ion( 7)
,
t
hei nter
es tpaidundersub-sect
ion( 8)shal
lberefundedtothereci
pientby
credi
ti
ngt heamountinthec or
respondingheadofhiselect
roni
ccashl
edge rin
suchmanne rasmaybepr escr
ibed:

Pr
ovidedthattheamountofint
erestt
obecr
edi
tedi
nanycaseshal
lnotexceedt
he
amountofint
erestpai
dbythesuppl
ier
.

(
10) Theamountr educedf r
om t heout
puttaxl i
abil
it
yi ncontr
av enti
onoft he
prov i
sionsofs ub-sect
ion(7)s hal
lbeadde dtot heoutputtaxliabil
it
yoft he
recipi
e nti
nhisr etur
nf orthemont hinwhichs uchc ontr
avent
iont akesplace
ands uc hreci
pientshallbeli
abletopayint
erestontheamounts oadde datthe
rates peci
fi
edins ub-
sec t
ion(3)ofsect
ion50.

43.
(1)Thedetail
sofever ycredi
tnoterel
ati
ng to out
ward suppl
yf ur
ni shed bya
regi
ster
edperson(her
eaft
erinthi
ssecti
onrefer
redtoast he“suppli
er”)forat ax
peri
od shal
l,i
n such mannerand wi
thi
n such time as maybe pr escribed,be
matched––

(
a)wi t
ht hecorr
espondi
ng reducti
on inthecl ai
m f orinputtaxcr
editbyt he
corr
esponding r
egi
ster
ed person (hereaf
terint his secti
on ref
err
ed to as the
“r
ecipi
ent
”)inhisval
idret
urnforthesamet axper
iodoranysubsequentt axper
iod;
and

(
b)f
ordupl
icat
ionofcl
aimsf
orr
educt
ioni
nout
putt
axl
iabi
li
ty.

(
2)Thec l
aimf orreduct
ioninoutputtaxl
iabi
l
itybyt hesuppl
i
e rt
hatmatcheswith
thecorrespondingreducti
onint hecl
aimf orinputt
axc redi
tbytherecipi
ent
shal
lbe f inal
lyacce pt
ed and communicated,i nsuch manneras maybe
prescr
ibed,tothesuppli
er.

(
3)Whe r
et her educt
ion ofoutputtaxl i
abil
i
tyi
nr espectofout wards uppl
ies
exceedsthec orr
e spondi
ngreducti
oni nthecl
aimf orinputtaxcredi
tort he
corr
espondingc r
e di
tnoteisnotdeclaredbyt
her eci
pientinhisval
idretur
ns,
thediscr
epanc yshallbecommunicatedtobot
hs uchpe rsonsinsuchmanne r
asmaybepr escr
ibed.

(
4)The dupl
i
c at
ion ofc l
aims forreduct
ion i
n out
putt
ax liabi
li
tyshal
lbe
communicatedt
ot hesuppl
ieri
nsuchmannerasmaybeprescri
bed.
(
5)Theamounti nr
es pectofwhichanydiscrepancyisc ommuni catedundersub-
sect
ion(3)andwhi chisnotr
e ct
if
iedbyther eci
pientinhisvali
dr et
urnforthe
monthinwhichdis cr
epancyi
sc ommuni catedshal
lbeadde dtotheoutputtax
l
iabi
li
tyofthesupplier
,insuchmanne rasmaybepr escr
ibed,inhisret
urnfor
themonthsucceedingthemonthinwhicht hediscr
e pancyiscommuni cat
ed.

(
6)Theamounti nrespectofanyr
educt
ioninout
puttaxli
abi
li
tyt
hatisfoundtobe
onacc ountofdupli
cati
onofcl
aimss hal
lbeaddedtotheout
puttaxliabi
li
tyof
the suppli
eri n hi
sr etur
nforthe mont hin whichs uch dupl
icati
on is
communi cated.

(
7)Thesuppl
iershallbee l
igi
blet
or educe,fr
om hisoutputtaxliabil
i
ty,theamount
addedunders ub-
s ect
ion(5)ifther eci
pientdecl
aresthede t
ail
soft hecredi
t
notei
nhisv al
idre t
urnwi t
hinthet i
mes pe ci
fi
edins ub-secti
on( 9)ofsect
ion
39.

(
8)As upplieri
nwhos eout puttaxl i
abili
tyanyamounthasbe enadde dunde rsub-
secti
on( 5)orsub-secti
on( 6),shallbel i
abletopayi nter
estattherates peci
fied
unders ub-sect
ion(1)ofs ecti
on50i nres pectoftheamounts oadde df rom the
dateofs uchc l
aimf orreductioni ntheout puttaxli
abili
tyt
il
lthec orr
e spondi
ng
addit
ionsar emadeunde rthes ai
ds ub-se cti
ons.
(
9)Whe r
eanyr educti
oni nout putt axliabil
ityisacc ept
edunde rs ub-secti
on( 7)
,
theinterestpaidunde rs ub-section( 8)s hallbere f
undedt ot hes uppli
erby
credi
tingtheamounti nt hec orrespondinghe adofhi select
roniccashl edgerin
suchmanne rasmaybepr e scri
be d:

Pr
ovidedthattheamountofinterestt
obecr
edi
tedi
nanycaseshal
lnotexceedt
he
amountofint
erestpai
dbyther
ecipient.

(
10) The amountr educedf rom out puttax li
abi
l
ityinc ont
raventi
on oft he
provi
sionsofsub-sect
ion( 7)s hal
lbeadde dt otheout
puttaxliabil
it
yoft he
suppl
ierinhisreturnforthemont hinwhi chsuchcont
raventi
ont akesplace
ands uchsuppl
iershal
lbel i
ablet opayinter
estontheamounts oadde datthe
ratespeci
fi
edinsub-sect
ion( 3)ofsecti
on50.

44.
(1)Everyregist
eredperson,ot
hert
hananI nputServiceDi
stri
butor,apersonpayi ng
taxundersect ion51orsect ion52,acasualt axablepersonandanon- resi
dent
taxabl
eper son,shal
lfurni
shanannualretur
nf oreveryfi
nancialyearel
ect r
onicall
y
insuchf orm andmannerasmaybepr escr
ibedonorbef orethet hi
rt
y-fi
rstdayof
Decemberf oll
owingtheendofsuchfinanci
alyear.

(
2)Everyr egist
ered person who i sr equir
e dto ge this ac counts auditedin
accordanc ewit
ht hepr ovi
sionsofs ub-secti
on( 5)ofs ecti
on35s hal
lfur
nish,
el
ectronicall
y,t
heannualr eturnunders ub-sect
ion( 1)al
ongwi thac opyofthe
auditedannualac countsandar econcili
ati
ons t
ateme nt
,r econc i
l
ingthev al
ue
ofs uppli
e sdeclaredint her et
urnf urni
shedf ort hefinancialy earwiththe
audited annualfinancialstatement,and s uch otherpar t
icularsasmaybe
prescri
be d.
45.
Everyregi
steredper sonwhoi sr equi
redtof
ur nishar eturnundersub-
secti
on( 1)of
secti
on39andwhoser egi
strat
ionhasbeencancel l
edshal lf
urni
shaf i
nalreturn
withi
nt hr
eemont hsoft hedat eofcancel
lationordat eofor derofcancel
lati
on,
whicheverislater,
insuchf orm andmannerasmaybepr escri
bed.
46.
Wherear egisteredpersonf ai
lstofur
nisharetur nundersect i
on39orsecti
on44or
secti
on45,anot i
ceshal lbei ssuedrequi
ringhi mt of ur
nishsuchretur
nwi t
hin
fi
ft
eendaysi nsuchf or
m andmannerasmaybepr escri
bed.

47.
(1)Anyr egi
steredper
sonwhof ail
st ofurni
shthedetail
sofout wardorinwar d
suppli
esrequir
edundersecti
on37orsect i
on38orr et
urnsrequi
redundersecti
on
39orsection45bytheduedateshallpayalat
efeeofonehundredrupeesforevery
daydur i
ngwhi chsuchfail
urecontinuessubj
ecttoamaxi mum amountoff ive
thousandrupees.

(
2)Anyregist
eredper
sonwhof ail
stofurnishthereturnrequi
redundersect
ion44
bytheduedateshallbel
iabl
etopayal atefeeofonehundr edr
upeesforever
y
dayduri
ngwhi chsuchfail
ureconti
nue ssubjecttoamax i
mum ofanamount
cal
culat
edataquarterpercent
.ofhi
st urnoveri
nt heState.

48.
(1)Themannerofappr ovalofgoodsandservicestaxpract
it
ioner
s,t
heirel
igibi
li
ty
condit
ions,duti
esandobl igat
ions,
mannerofr
emovalandot hercondi
ti
onsrelevant
fort
heirfuncti
oningshallbesuchasmaybepr escr
ibed.

(
2)Ar egist
ered per
son may author
ise an appr
oved goods and servi
cestax
pr
actit
ionertofurnisht
hede t
ail
sofout wardsuppl
iesunde rsect
ion37,the
det
ailsofinwardsuppli
esundersect
ion38andt heret
urnunde rsect
ion39or
sect
ion44ors ecti
on45insuchmanne rasmaybepr escr
ibed.

(
3)Notwithst
andi
ngany t
hingc ontai
nedins ub-
sect
ion(2),theresponsibi
l
ityf
or
corr
ectnessofanyparti
cularsfurni
shedintheretur
norot herdetail
sfi
ledby
t
he goods and servi
cest ax pract
iti
oner
ss hal
lc onti
nue tor estwiththe
r
e gi
ster
edpersononwhos ebe hal
fsuchretur
nandde t
ail
sarefurnished.

CHAPTER-
X
PAYMENTOFTAX

49.
(1)Everydepositmadetowar dstax,i
nterest,penalty,feeoranyot heramountbya
personbyi nter
netbanki
ngorbyusi ngcr editordebi tcardsorNat i
onalElectr
onic
FundTr ansferorRealTi
meGr ossSett
lementorbysuchot hermodeandsubj ectto
suchcondi ti
onsandr estr
ict
ionsasmaybepr escribed,shallbecr edi
tedtot he
elect
roniccashledgerofsuchper sontobemai ntainedi nsuchmannerasmaybe
prescri
bed.

(
2)Theinputtaxcredi
tass el
f-
assessedi
nther et
ur nofar egi
ster
edpersonshal
l
becredit
edtohiselect
roni
cc r
editl
edger
,inacc ordancewithsect
ion41,t
obe
maintai
nedinsuchmanne rasmaybepr escr
ibed.
(
3)Theamountav ailabl
eintheel
ect
ronicc ashl
edgermaybeus edformakingany
payme ntt
owar dstax,i
nter
est
,penalt
y,feesoranyotheramountpayabl
eunder
theprovisi
onsoft hi
sAc torther ul
esmadet her
eunderinsuchmanne rand
subj
ecttos uchconditi
onsandwithinsuchti
measmaybepr escr
ibed.

(
4)Theamountav ai
l
ableintheelect
ronicc r
editl
edgermaybeus edformaki
ng
anypaymenttowardsout
puttaxunde rthisActorundert
heInt
egrat
edGoods
andServi
cesTaxAc ti
ns uchmanne rands ubjectt
os uchcondi
ti
onsand
wit
hinsucht
imeasmaybepr escri
be d.

(
5)Theamountofinputt
axc r
editavai
labl
eint
heel
ect
roni
ccr
edi
tledgeroft
he
regi
ster
edper
sononaccountof––

(
a)i
ntegr
atedt axshallf
ir
stbeuti
li
sedtowardspaymentofi ntegrat
edt
axandthe
amountremaining,i
fany,maybeuti
li
sedtowardsthepaymentofcentr
alt
axand
St
atetax,orasthecasemaybe,Uni
ont er
ri
tor
ytax,
inthatorder;

(b)thecent
raltaxshallf
ir
stbeutil
isedt
owar
dspaymentofcentr
altaxandt
he
amountremai
ning,
ifany,
maybeutil
isedtowar
dst
hepaymentofi
ntegr
atedt
ax;

(c)t
heStat
et axshallfi
rstbeut
il
isedt
owar
dspaymentofStat
et axandthe
amountr
emaining,
ifany,
maybeuti
li
sedt
owar
dst
hepaymentofi
ntegrat
edt
ax;

(
d)theUnionter
ri
tor
ytaxshallf
ir
stbeutil
isedt
owar
dspaymentofUni
onterr
it
ory
t
axandt heamountremai
ning,ifany,maybeutil
isedt
owar
dst hepaymentof
i
ntegrat
edtax;
(e)thecentralt
axshal
lnotbeut
il
isedt
owar
dspaymentofSt
atet
axorUni
on
t
err
itor
ytax;and

(f
)theSt at
et axorUniont err
it
orytaxshal
lnotbeutil
isedt
owardspaymentof
centr
altax.
(
6) Thebal ancei nt heelectr
onicc ashledgerorelect
roniccredi
tledgeraft
er
payme ntoft ax,i
nter
est,penalty,feeoranyotheramountpay ableundert
his
Actort her ulesmadet her
e unde rmayber ef
undedi naccordancewiththe
provi
sionsofs ecti
on54.

(
7)Allliabil
i
t i
es ofa t axabl
e pe rson underthis Actshallbe r
ecorded and
maintainedi n an electr
onicliabili
tyregi
sterins uch manneras may be
prescri
be d.
(
8)Everytax ableper
sons halldi
s chargehistaxandotherduesunderthisActor
therulesmadet hereunderinthef ol
lowi
ngorder,namel
y:––

(
a)sel
f-
assessedt
ax,
andot
herduesr
elat
edt
oret
urnsofpr
evi
oust
axper
iods;

(
b)sel
f-
assessedt
ax,
andot
herduesr
elat
edt
other
etur
noft
hecur
rentt
axper
iod;

(
c)any ot
heramountpayabl
e undert
his Actort
he r
ules made t
her
eunder
 i
ncl
udi
ngt
hedemanddet
ermi
nedundersect
ion73orsect
ion74.

(
9) Everype r
s onwhohaspai dthetaxongoodsors ervi
cesorbothunderthisAct
shall
,unles st
hec ont
raryisprovedbyhi m,bedeemedtohavepas sedont he
ful
linci
de nceofsuchtaxtotherecipi
entofsuchgoodsorser
vicesorboth.
Explanat
ion.––Fort
hepurposesoft
hissect
ion,

(
a) the date of cr
edi
tt o the account of t
he
Gover nmenti
nt heaut
hori
sedbankshal lbedeemedtobethedat
eofdepositi
nthe
electr
oniccashledger
;
(
b) t
heexpressi
on,
-
(i
)“ t
axdues”meanst hetaxpayabl eunderthi
sActanddoesnotincludei
nter
est,
feeandpenal t
y;and
(i
i)“otherdues”meansinterest,penal
ty,f
eeoranyotheramountpayableunder
thisActortherulesmadethereunder.

50.
(1)Ever
yper sonwhoi sli
abletopayt axinaccordancewitht heprovi
sionsoft hi
s
Actortherulesmadet her
eunder,butfail
stopayt hetaxoranypar tthereoftothe
Governmentwi thi
nt heperi
odpr escr
ibed,shal
lfortheperiodf orwhichthet axor
any partthereofr emains unpaid,pay,on his own,interestatsuch r ate,not
exceedi
ng eighteen percent .
,as may be not i
fied by t
he Gover nmenton t he
recommendat i
onsoft heCouncil
.

(
2)Theinter
estundersub-sect
ion(1)shallbecalcul
ated,i
nsuchmannerasmay
beprescri
bed,f
rom thedays ucceedi
ngt hedayonwhi chsucht
axwasdueto
bepaid.

(
3)At axablepe r
sonwhomak esanundueore xcessc l
aim ofinputtaxc redi
t
unders ub-
se ct
ion(10)ofs ect
ion42orundueore xcessreduct
ioninoutputtax
l
iabil
it
yunde rs ub-
sec t
ion(10)ofsect
ion43,shallpayint
e r
estons uchundue
ore xcessclai
m orons uchundueore xcessr
e duct
ion,asthec asemaybe ,at
suchr atenote xceeding t
we nt
y-f
ourperc ent.
,asmaybenot i
fi
ed byt he
Gov er
nme ntont herecomme ndati
onsoftheCounc i
l.

51.
(1)Notwi
thstandi
nganyt hi
ngtothecontr
arycontai
nedint
hisAct,theGovernment
maymandat e,-
(a)adepart
mentorest abl
ishmentoft
heCentralGover
nmentorStateGover
nment;
or
(b)l
ocalauthori
ty;or

(
c)Gover
nment
alagenci
es;
or

(
d)suchpersonsorcategor
yofpersonsasmaybenot
if
iedbyt
heGover
nmenton
t
herecommendati
onsoftheCounci
l,

(
her
eaf
teri
nthi
ssect
ionr
efer
redt
oas“
thededuct
or”
),t
odeductt
axatt
her
ateofone
percent
.from thepaymentmadeorcr editedtot hesuppl i
er(hereafteri
nt hi
ssecti
on
ref
err
edtoas“ t
hedeductee”)oftaxablegoodsorser vicesorboth,wher ethetot
alval
ue
ofsuchsupply,
underacontract,exceedstwol akhandf i
ft
ythousandr upees:
Provi
dedthatnodeducti
onshal lbemadei fthelocationofthesuppl i
erandt hepl
aceof
suppl
yisinaSt ateorUniont erri
torywhichi sdifferentfr
om theSt ateor,asthecase
maybe,Unionterr
it
oryofregist
rati
onoft herecipi
ent .

Expl
anat
ion.
––Fort
hepur
poseofdeduct
ionoft
axspeci
fi
edabove,t
heval
ueof
suppl
yshal
lbetakenast
heamountexcl
udi
ngt
hecent
ralt
ax,St
atet
ax,i
ntegr
atedt
ax
andcessi
ndi
cat
edinthei
nvoi
ce.

(
2)The amountde ducted as t
ax underthiss ect
ion shal
lbe paidtot he
Gover
nme ntbythede duct
orwi t
hintendaysaftertheendoft hemont
hi n
whi
chs uchdeduct
ionismade,insuchmannerasmaybepr escr
ibed.

(
3)Thede duct
orshal
lfur
nishtothededucteeac er
ti
fi
cat
eme nt
ioni
ngther
einthe
cont
rac tval
ue,rat
e ofde duct
ion,amountde ducted,amountpaidtot he
Governmentandsuchotherpart
icul
arsi
ns uchmannerasmaybeprescri
bed.

(
4)I
fanyde ductorfai
lstof ur
nishtothededucteethecert
ifi
cate,af
terdeduct
ing
t
het axats ource,withinfi
vedaysofc r
edit
ingtheamounts odeductedtothe
Gov er
nme nt,
thede duc t
orshal
lpay,bywayofal atef
ee,as um ofonehundred
rupeespe rdayf r
om t hedayaftertheexpi
ryofs uchfi
vedaype r
iodunti
lthe
fai
lureisrect
ifi
ed,subjectt
oamax i
mum amountoff i
vethousandrupees.

(
5)The deducteeshallclai
m c r
edi
t,in hise l
ect
roniccashl edger,oft
he tax
deduct
edandr ef
lect
edi ntheretur
noft hede duct
orfurni
s hedundersub-
sect
ion(3)ofsect
ion39,insuchmanne rasmaybepr escr
ibed.

(
6)Ifanyde ductorfai
lstopaytotheGov ernmenttheamountdeduct
edast ax
undersub-secti
on(1),
heshal
lpayinter
estinaccor
dancewi
tht
heprovisi
onsof
sub-sect
ion(1)ofsect
ion50,
inaddit
iontotheamountoft
axdeduct
ed.

(
7)Thedeter
minat
ionoft
heamountindef
aultundert
hissect
ionshal
lbemadei
n
themannerspeci
fi
edi
nsect
ion73orsect
ion74.

(
8)Ther ef
undtothededuct
orort
hededuct
eearisi
ngonac countofexcessor
er
roneousdeduct
ionshal
lbedeal
twi
thinaccordancewi
ththeprovi
sionsof
sect
ion54:

Provi
dedthatnor
efundtothededuct
orshal
lbegranted,i
ftheamountdeduct
edhas
beencredi
tedtot
heel
ectr
oniccashl
edgeroft
hedeductee.

52.
(1)Notwithst
andi nganyt hi
ngtot hecontr
arycontai
nedint hi
sAct ,everyelect
ronic
commer ceoper ator(hereaf
terinthi
ssecti
onr ef
err
edtoast he“operator”)
,notbeing
anagent ,shallcollectanamountcal cul
atedatsuchr at
enotexceedi ngoneper
cent.
,asmaybenot ifi
ed byt heGover nmenton ther ecommendat i
onsoft he
Council
,oft henetval ueoft axablesuppli
esmadet hroughi tbyot hersuppliers
wheretheconsi derati
onwi threspecttosuchsuppl i
esist obecol lect
edbyt he
 oper
ator
.

Expl
anat
ion.
––Fort
hepur
posesoft
hissub-
sect
ion,t
heexpr
essi
on"
netval
ueof
taxable suppl
ies"shallmean t he aggr
egate value oftaxable suppl
ies ofgoods or
servicesorbot h,ot
herthanservicesnotif
iedundersub-section(5)ofsect i
on9,made
during any mont h by al
lregister
ed persons through t
he oper at
orr educed by t
he
aggr egat
evalueoftaxablesuppli
esretur
nedtothesuppl i
ersduri
ngt hesaidmonth.

(
2)Thepowertocol
l
e ctt
heamountspeci
fi
edins ub-
secti
on( 1)shal
lbewi
thout
prej
udi
cet
oanyothermodeofr
ecover
yfrom t
heope r
ator.

(
3)Theamountc ol
lect
edundersub-
sect
ion(1)shal
lbepai
dtot
heGover
nme ntby
theoper
atorwit
hintendaysaf
tert
hee ndoft
hemonthinwhi
chsuchcol
l
e ct
ion
i
smade ,i
ns uchmannerasmaybepr escr
ibed.

(
4)Everyope r
atorwho c ol
lect
st heamounts pe ci
fi
edins ub-
secti
on (1)s hall
fur
nishas tat
e me nt,elect
ronical
ly,cont
aini
ngt hedetai
l
sofout wards uppli
es
ofgoodsors er
v i
ce sorbot he ff
e ct
edt hr
oughi t,i
ncl
udingthes uppli
esof
goodsors ervi
c esorbot hreturnedthroughit,andtheamountc ol
l
e ct
edunde r
sub-sect
ion (1)dur i
ng a mont h,i ns uchf orm and manne ras may be
prescr
ibed,withi
nt enday saft
e rt
hee ndofsuchmont h.

(
5)Everyoperat
orwho c oll
ec t
st heamounts peci
fiedi ns ub-sect
ion (1)s hall
fur
nishanannuals t
ateme nt,elect
roni
call
y,c ont
ainingthede t
ail
sofout ward
suppl
iesofgoodsors e r
vicesorbot heff
e ct
edt hr
oughi t
,includi
ngt hes uppli
es
ofgoodsors e r
vicesorbot hr et
urnedthroughi t,andt heamountc oll
ected
underthesai
ds ub-secti
ondur ingthef i
nancialyear,insuc hform andmanne r
asmaybepr escri
be d,beforethethirt
yfir
stdayofDe cembe rfoll
owi ngthee nd
ofsuchfi
nancialyear.

(
6)Ifanyope ratoraf t
erfurnishi
ngas tateme ntunde rs ub-secti
on( 4)dis cover
s
anyomi ssi
onori ncor
rectparti
cular
st he r
ein,otherthanasar esultofs crut
iny,
audit
,inspectionore nforcementac t
ivi
tybyt het axaut hori
ti
e s,hes hallrect
if
y
suchomi ssionori ncorrectpart
icul
arsi nthes t
ateme nttobef urni
she dforthe
monthdur i
ngwhi chsuc homi ssi
onori ncorrectparti
cularsarenot iced,subject
topayme ntofi nt
e r
est,
ass pecif
iedins ub-secti
on( 1)ofsection50:

Provi
dedthatnos uchr ect
ifi
cati
onofanyomi ssi
onori ncorrectpar
ti
cul
ars
shal
lbeall
owe daf
tertheduedat eforfur
nishi
ngofs t
ateme ntforthemonthof
Septemberfoll
owi
ng t he end ofthe fi
nancialyearort he actualdat
e of
fur
nishi
ngoftherel
evantannualstatement,
whicheveri
se arli
er.

(
7)Thes uppl
ierwhohass uppli
edt hegoodsors e r
vicesorbot hthr
ought he
oper
ators hal
lclai
m credi
t,in hiselect
roni
cc ashl edger
,oft he amount
col
lect
edandr ef
lect
edinthestatementoftheope r
atorfur
nishedundersub-
sect
ion(4)
,insuchmannerasmaybepr escri
bed.
(
8)Thedetail
sofsuppli
esfurni
s hedbyeveryoper
atorundersub-
sect
ion(4)shal
l
bemat chedwit
ht hecorr
e spondingdet
ail
sofoutwards uppl
i
e sf
urni
shedby
theconcernedsuppli
erregi
s ter
edunderthisActinsuchmanne randwithin
suchti
measmaybepr escri
be d.

(
9)Whe rethedetai
lsofout war
ds uppli
esfurnishedbyt heope rat
orunde rsub-
sect
ion (4)do notmat ch wit
ht hec or
responding det
ail
sf urni
shed byt he
suppli
erunders ect
ion37,t hediscr
epancys hal
lbec ommuni catedtobot h
personsinsuchmanne randwithi
nsuc hti
measmaybepr escri
bed.

(
10) Theamounti nrespectofwhi chanydi screpancyisc ommuni catedunder
sub-
sec t
ion( 9)andwhichi snotr ect
if
iedbyt hes uppli
erinhi svali
dre t
urnor
t
he ope rator in hi
ss t
ateme ntf or t
he mont hi n whi ch di
s cr
epanc yis
communi cated,shal
lbeadde dt otheoutputt axl i
abi
li
tyoft hes ai
ds uppli
er,
wherethev alueofoutwards uppli
esfurnishedbyt heope r
atorismor ethanthe
val
ueofout wardsuppli
esfurnishedbyt hes uppli
er,i
nhisr et
urnforthemont h
succeedi
ngt hemont hinwhi chthedi screpanc yiscommuni catedins uch
mannerasmaybepr escri
bed.

(
11) Thec oncer
neds upplier
,inwhos eoutputtaxliabil
i
tyanyamounthasbe en
addedunders ub-
sec t
ion( 10),shal
lpayt hetaxpay abl
einr espectofs uch
suppl
yalongwithi
nt er
e st
,attheratespeci
fiedunde rsub-
sect
ion( 1)ofsect
ion
50ont heamountsoadde df r
om thedates uchtaxwasduet i
llthedateofi t
s
payment.

(
12) Anyaut hor
it
ynotbe l
ow therankofDe putyCommi ssi
onermayservea
noti
ce,ei
therbef
oreorduri
ngthec our
seofanypr oceedi
ngsundert
hisAct
,
requi
ri
ngtheoperat
ort
ofurni
shsuchdetai
l
sr el
ati
ngto—

(a)suppli
esofgoodsorser
vicesorbot
hef
fect
edt
hroughsuchoper
atordur
ing
anype r
iod;or

(b)stock ofgoods he l
d by t
he suppli
ers maki
ng suppl
iesthrough such
oper
atori
nt hegodownsorwarehouses,bywhatevernamecall
ed,managedby
suchoper
atorandde cl
aredasaddi
ti
onalplacesofbusi
nessbysuchs uppl
i
e r
s,

asmaybespeci
fi
edi
nthenot
ice.

(
13) Ev er
yoperat
oronwhom anoticehasbeense r
vedundersub-
sect
ion(12)
shal
l f
urni
sht
her equir
edi
nfor
mat
ionwit
hinf
if
teenworki
ngdaysofthedat
eof
servi
ceofsuchnotice.

(
14) Anype r
son who fail
stof ur
nishtheinfor
mat i
on requi
red byt henoti
ce
servedundersub-sect
ion(12)shal
l,wit
houtpr
e j
udicetoanyac tionthatmay
betakenunders ect
ion122,beli
abl
et oapenal
tywhi chmaye xt
e ndtotwenty-
fi
vethousandrupees.
 Explanat
ion.
—Fort he pur
poses ofthissect
ion,the expr
essi
on “
concerned
suppli
er”shal
lme anthesuppl
ierofgoodsorservi
cesorbothmaki
ngs uppli
es
thr
ought heoper
ator.

53.
Onut i
lisati
onofinputtaxcreditavailedunderthisActf orpaymentoftaxduesunder
theIntegratedGoodsandSer vicesTaxActi naccor dancewi t
htheprovisi
onsofsub
-sect
ion( 5)ofsecti
on49, asrefl
ectedi nthevali
dret urnf ur
nishedundersub-secti
on
(1)ofsect i
on39,t heamountcol lectedasSt at
et axshal lstandreducedbyan
amountequalt osuchcr edi
tsout il
isedandt heSt ateGover nmentshallt
ransferan
amountequalt otheamountsor educedf r heSt
om t at etaxaccounttotheintegrat
ed
taxaccounti nsuchmannerandwi t
hi nsuchtimeasmaybepr escri
bed.

CHAPTERXI
REFUNDS

54.
(1)Anypersonclaimingrefundofanytaxandint
erest
,ifany,pai
donsucht axor
anyotheramountpai dbyhi m,maymakeanappl i
cati
onbef or
etheexpiryoftwo
yearsf
rom ther
elevantdateinsuchf
orm andmannerasmaybepr escr
ibed:

Providedthataregi
ster
edperson,claimingr
efundofanybal anceintheelect
roni
c
cashledgerinaccor
dancewi t
htheprovisi
onsofsub-sect
ion(6)ofsect
ion¬¬¬49,may
cl
aim suchrefundintheretur
nfurni
shedundersecti
on39i nsuchmannerasmaybe
prescr
ibed.

(
2)As pec i
ali
zedage ncyoft heUni tedNat i
onsOr ganizati
onoranyMul t
ilateral
FinancialInsti
tuti
on and Or ganization notifi
ed unde rthe Uni
ted Nat ions
(Pri
vil
ege s and Immuni t
ies)Ac t,1947,Cons ulate orEmbas sy off oreign
countri
e soranyot herper
s onorc l
as sofpe rsons ,asnotif
iedundersect
ion55,
enti
tl
edt oar efundoftaxpai dbyi toni nwards uppliesofgoodsors er
vic esor
both,maymak eanappl i
cati
onf ors uchr ef
und,i ns uchf or
m andmanne ras
maybepr escr
ibed,befor
et heex pir
yofs ixmont hsf r
om thelastdayoft he
quarterinwhichs uchsupplywasr e ceived.

(
3)Subjectt
otheprovi
sionsofsub-
sect
ion(
10)
,aregist
eredper
s onmaycl
aim
ref
undofanyunuti
li
sedinputt
axcr
edi
tatt
heendofanytaxper
iod:

Providedthatnorefundofunut i
li
sedinputtaxcredi
tshallbeall
owedincasesother
than-
(i
)zero-rat
edsuppli
esmadewi thoutpaymentoftax;
(i
i)wheret hecr
edithasaccumulatedonaccountofr at
eoft axoninput
sbei
nghigher
thant her ateoftaxonout putsuppli
es(otherthannilrat
edorf ul
lyexemptsuppl
ies)
,
exceptsuppl iesofgoodsorservicesorbothasmaybenot i
fi
edbyt heGover
nmenton
ther ecommendat i
onsoftheCouncil:

Pr
ovi
dedfurt
herthatnorefundofunut
il
isedinputtaxcr
editshal
lbeal
lowedi
ncases
wher
ethegoodsexportedoutofI
ndiaar
esubjectedtoexportdut
y:

Pr
ovi
dedal
sot
hatnor
efundofi
nputt
axcr
edi
tshal
lbeal
lowed,i
fthesuppl
ierof
goodsorser
vicesorbothclai
msrefundoft
hei
ntegr
atedt
axpai
donsuchsuppl
ies.
(4)Theappl
icati
ons hall
beac companiedby—

(
a)suchdocumentar
yevi
denceasmaybepr
escr
ibedt
oest
abl
isht
hatar
efundi
sdue
t
otheappli
cant
;and

(b)such documentaryorot herevidence( i

ncludi
ng thedocumentsrefer
red toi n
secti
on33)astheappl i
cantmayf urni
shtoestabli
shthattheamountoftaxandinter
est,
i
fany,paidonsucht axoranyot heramountpaidi nrelat
iont
owhi chsuchrefundi s
cl
aimedwascol lect
edf r
om,orpai dby,him andtheincidenceofsuchtaxandinterest
hadnotbeenpassedont oanyotherperson:

Provi
dedt hatwheretheamountcl ai
medasr ef
undislessthantwolakhr upees,i
t
shal
lnotbenecessaryfortheappli
cantt
of ur
nishanydocumentaryandotherevi
dences
buthemayf il
eadeclarat
ion,basedont hedocumentaryorotherevi
dencesavailabl
e
wit
hhim, cer
tif
yingt
hattheinci
denceofsuchtaxandinter
esthadnotbeenpassedont o
anyotherperson.

(
5)If
,onr ecei
ptofanys uchappli
cat
ion,t
hepr operoff
iceri
ss ati
sfi
edthatt
he
wholeorpartoftheamountclai
medasr efundisref
undabl
e ,hemaymak ean
orderaccor
dingl
yandt heamountsodeter
mi nedshal
lbecredit
edtotheFund
refer
redt
oins ect
ion57.

(
6)Notwiths t
andingany t
hingc ontainedins ub-secti
on( 5),t
hepr operof f
icermay ,
i
nt hec aseofanyc l
aimf orrefundonac countofz ero-r
atedsupplyofgoodsor
servicesorbot hmadebyr egisteredpe rsons,ot herthans uc hc ategoryof
regist
e red persons as may be not i
fied by t he Gov ernme nt on t he
recomme ndati
onsoft heCounc i
l,r
efundonapr ovisionalbasi
s ,ni
ne t
ype rce nt
.
oft het otalamounts oc lai
me d,e xcl
udi ng t
heamountofi nputt axc re di
t
provisi
onal l
y accepted,i ns uch manne rand s ubjecttos uchc ondit
ions,
l
imitationsands afeguardsasmaybepr escri
bedandt hereaf
termak eanor der
unde rs ub-sect
ion (5)f orfinals ett
leme ntoft he refund c l
aim af t
erdue
veri
ficati
onofdoc ume ntsfurnishedbyt heappl i
cant .

(
7)Theproperof
fi
cershal
lissuet
heor derundersub-
sect
ion(5)wit
hinsi
xtydays
fr
om t
hedateofrecei
ptofappl
icat
ionc ompl
eteinal
lrespect
s.

(
8)Notwit
hstandingany t
hingc ontai
nedinsub-
sect
ion(
5),t
heref
undableamount
shal
l,i
nsteadofbe i
ngc redit
edt ot
heFund,bepaidtotheappl
icant,i
fsuch
amountisrelatabl
eto–

(a)refundoftaxpaidonzer o-
rat
edsuppliesofgoodsorser
vicesorbot
horon
i
nputsori nputser
vicesusedinmaki ngsuchzero-r
atedsuppl
iesinthegoodsor
ser
vicesorbothwhichareexpor
tedoutofI
ndia;

(
b)r
efundofunut
il
isedi
nputt
axcr
edi
tundersub-
sect
ion(
3);

(c)r
efundoftaxpai
donasupplywhichisnotpr
ovided,ei
therwhol
lyorpar
ti
all
y,
andforwhichinvoi
cehasnotbeenissued,orwherear efundvoucherhasbeen
 i
ssued;

(
d)r
efundoft
axi
npur
suanceofsect
ion77;

(
e)thetaxandi
nterest
,ifany,
oranyotheramountpai
dbytheappl
icant
,ifhehad
notpassedonthei
ncidenceofsuchtaxandint
erestt
oanyot
herper
son;or

(f
)thetaxorint
erestbornebysuchothercl
assofappli
cant
sast heGover
nment
may,ont
herecommendat i
onsoftheCounci
l,
bynoti
fi
cat
ion,
speci
fy.

(
9)Notwit
hs t
andingany thingtot hec ontrar
yc ontai
nedinanyjudgme nt
,decr
e e,
orderordi r
ec tion oft he Appe l
late Tri
bunaloranyc our
tori n anyother
provi
sionsoft hisAc tort herulesmadet hereunderori
nanyotherlawforthe
ti
mebe i
nginf orce,nor e f
unds hallbemadee xcepti
naccordancewit
ht he
provi
sionsofs ub-section(8).

(
10) Whe r
eanyr efundisdueunde rsub-
sect
ion( 3)toar egi
ster
edper
sonwho
hasde f
ault
edinfurnishinganyret
urnorwhoi sre qui
redtopayanytax,
int
erest
orpe nal
ty,whichhasnotbe ens t
ayedbyanyc ourt
,Tr i
bunalorAppel
lat
e
Authori
tybythespe ci
fieddate,
theproperof
ficermay —

(
a)withholdpaymentofr ef
unddueunti
lthesai
dper
sonhasf
urni
shedt
her
etur
n
orpaidt
het ax,i
nter
estorpenalt
y,ast
hecasemaybe;

(
b)deductfrom theref
unddue,anyt
ax,i
nter
est,penal
ty,f
eeoranyot
heramount
whicht
het axablepersonisl
iabl
etopaybutwhichremainsunpai
dunderthi
sActor
undert
heexisti
nglaw.

Expl
anat
ion.
––Fort hepurposesoft
hissub-sect
ion,t
heexpr
essi
on“
speci
fi
eddat
e”
shal
lmeanthelastdat
eforfi
li
nganappealunderthi
sAct.

(
11) Whe reanor dergivingr i
set oarefundisthes ubj
ectmatt
e rofanappe alor
fur
the rproceedingsorwhe r
eanyot herproceedi
ngsunderthisAc ti
spe nding
andt heCommi s si
oneri soft heopiniont
hatgr antofsuchre f
undislikel
yt o
advers el
y af
fec tthe rev enue inthe sai
d appe alorotherpr oceedi
ngs on
accountofmal feasanc eorf raudcommi t
ted,hemay ,aft
ergivingthetaxable
personanoppor tunit
yofbe ingheard,wit
hholdtherefundti
llsuchtimeashe
mayde ter
mine.

(
12) Whe rear ef
undiswi thhel
dunde rsub-
secti
on( 11)
,thetaxabl
epe r
sons hall
,
notwit
hs tandi
ngany thi
ngc ont
ainedins ect
ion56,bee nti
tl
edt ointer
estat
such r ate not ex ceeding six perc ent. as may be not i
fi
ed on t he
recomme ndati
ons oft he Counc i
l
,ifas a r esultofthe appealorf urther
proceedingshebe come se nt
it
ledtoref
und.
(
13) Not wit
hstanding anyt
hing tothec ontrar
yc ontainedi nt hiss ect
ion,t he
amountofadv ancetaxdepositedbyac asualtaxablepe r
sonoranon- resi
de nt
taxabl
epe rson unde rsub-sect
ion (
2)ofs ect
ion 27,s hallnotber efunde d
unlesssuchpe rsonhas,inrespectoftheenti
repe riodf orwhic hthec er
ti
ficate
ofregist
rati
ongr ant
e dt
ohi m hadremai nedinf orce,furnishedal lt
her et
ur ns
requir
edunde rsecti
on39.

(
14) Notwi
thst
andingany thi
ngc ont
ainedinthi
ssect
ion,norefundundersub-
sect
ion(
5)orsub-sect
ion(6)shallbepai
dtoanappl
icant
,ift
heamountisl
e ss
t
hanonethousandrupe es.

Expl
anat
ion.
—Fort
hepur
posesoft
hissect
ion,
––

(1)“r
efund”incl
udesrefundoftaxpaidonzero-rat
edsuppl
iesofgoodsorservi
ces
orbothoroni nput
sori nputservicesusedinmaki ngsuchzero-r
atedsuppli
es,or
ref
undoft axont hesuppl yofgoodsr egar
dedasdeemedexpor ts,orref
undof
unuti
li
sedinputtaxcredi
tasprovi
dedundersub- secti
on(
3).

(
2)“
rel
evantdat
e”means–

(
a)inthecaseofgoodsexpor tedoutofIndiawherearef
undoftaxpaidis
avail
abl
einrespectofgoodsthemselvesor
,asthecasemaybe,
thei
nputsori
nput
servi
cesusedinsuchgoods,––

(
i)i
fthegoodsar
eexport
edbyseaorai r
,thedateonwhi
cht
heshi
port
he
ai
rcraf
tinwhi
chsuchgoodsarel
oaded,
leavesIndi
a;or

(i
i)i
fthegoodsar
eexpor
tedbyl
and,
thedat
eonwhi
chsuchgoodspasst
he
f
ront
ier
;or

(
ii
i)i
fthegoodsareexpor
tedbypost,thedat
eofdespat
chofgoodsbyt
he
PostOff
iceconcer
nedtoaplaceout
sideIndi
a;

(
b)int
hecaseofsupplyofgoodsregardedasdeemedexpor
tswherearefundof
taxpai
disavai
labl
einrespectofthegoods,t
hedateonwhichther
etur
nrelati
ngto
suchdeemedexpor
tsi
sf ur
nished;

(c)inthecaseofser vicesexpor
tedoutofIndi
awherear ef
undoftaxpai
di s
availabl
einrespectofservicest
hemselvesor
,asthecasemaybe,t
hei
nputsori
nput
servicesusedinsuchservices,t
hedateof––

(i)recei
ptofpaymentinconvert
ibl
ef oreignexchange,wherethesuppl
yof
ser
viceshadbeencomplet
edpr
iortothereceiptofsuchpayment;or

(
ii
)issueofinvoi
ce,wherepaymentfortheser
viceshadbeenr
ecei
vedi
n
advancepri
ort
othedateofi
ssueoft
heinvoi
ce;

(
d)incasewherethetaxbecomesr ef
undabl
easaconsequenceofj udgment
,
decr
ee,or
derordi
rect
ionoftheAppel
lat
eAuthori
ty,Appel
lat
eTr
ibunaloranycourt
,
 t
hedat
eofcommuni
cat
ionofsuchj
udgment
,decr
ee,
orderordi
rect
ion;

(e)i
nthecaseofref
undofunut
il
isedi
nputtaxcr
editundersub-
sect
ion(
3),
theend
oft
hefi
nanci
alyeari
nwhichsuchcl
aimforref
undarises;

(
f)inthecasewheretaxispaidprovi
sional
lyundert hi
sActortherul
esmade
t
her
eunder,
thedat
eofadj
ustmentoft
axafterthefi
nalassessmentt
her
eof
;

(g)inthecaseofaper
son,otherthant
hesuppl
ier
,thedat
eofr
ecei
ptofgoodsor
ser
vicesorbot
hbysuchperson;and

(
h)i
nanyot
hercase,
thedat
eofpaymentoft
ax.

55.
TheGover nmentmay,on t her ecommendat i
onsoft heCounci l
,bynot if
icat
ion,
specify any speci alized agency of t he Uni ted Nat i
ons Or ganizati
on or any
Mul t
il
ateralFinanci alInst i
tutionandOr ganizat i
onnot i
fi
edundert heUni tedNat i
ons
(Pri
vil
egesandI mmuni ti
es)Act ,1947,Consul ateorEmbassyoff or ei
gncount ri
es
andanyot herper sonorcl assofper sonsasmaybespeci fi
edi nthi sbehalf,who
shall
,subj ecttosuchcondi tionsandr est ri
ctionsasmaybepr escribed,beent i
tl
ed
toclaim ar efundoft axespai dont henot ifi
edsuppl i
esofgoodsorser vicesorboth
recei
vedbyt hem.
56.
Ifanyt axor dered t o ber efunded undersub- section (5)ofsect ion 54 to any
appli
canti snotr efundedwi thinsi xt
ydaysf r
om t hedat eofreceiptofappl i
cati
on
undersub- secti
on( 1)oft hatsect i
on,i nterestatsuchr atenotexceedi ngsixper
cent.asmaybespeci fi
edi nt henot i
ficationi ssuedbyt heGover nmentont he
recommendat i
onsoft heCounci lshal lbepayabl einr espectofsuchr ef
undf r
om the
dateimmedi atel
yaf t
ert heexpi ryofsi xtydaysf rom thedat eofreceiptofappl i
cati
on
underthesai dsub- sectiont il
lthedat eofr ef
undofsucht ax:

Provi ded thatwher e any claim ofr efund arises from an or derpassed by an
adjudi cati
ngaut horityorAppellateAuthori
tyorAppel lateTr i
bunalorcour twhichhas
attainedf inali
tyandt hesamei snotr efundedwi thinsi xtydaysf r
om t hedat eof
receiptofappl i
cation fi
led consequentt o such order ,interestatsuch r ate not
exceedi ng ni ne per cent . as may be not ifi
ed by t he Gover nment on t he
recommendat ionsoft heCounci lshal
lbepayabl einrespectofsuchr efundfrom the
datei mmedi at
elyaft ert
heexpiryofsixtydaysf rom thedat eofr eceiptofapplicati
on
ti
llthedat eofr efund.
Expl anat i
on.––Fort hepur posesoft hi
ssection,whereanyor derofr efundismadeby
anAppel l
ateAut horit
y,Appel l
ateTr i
bunaloranycour tagai nstanor deroft heproper
off
icerundersub- secti
on( 5)ofsect i
on54,theor derpassedbyt heAppel lat
eAut hori
ty,
Appel l
ateTr ibunalorbyt hecourtshallbedeemedt obeanor derpassedundert hesaid
sub-sect ion(5).

57.
TheGover
nmentshallconsti
tut
eaFund,tobecal
ledt
heConsumerWel
far
eFund
andt
hereshal
lbecr
editedtotheFund,
––

(
a)t
heamountr
efer
red t
oin sub-
sect
ion(
5)ofsect
ion54;

(
b)anyi
ncomef
rom i
nvest
mentoft
heamountcr
edi
tedt
otheFund;and
 (
c) suchot
hermoni
esr
ecei
vedbyi
t,

i
nsuchmannerasmaybepr
escr
ibed.

58.
(1)Al
lsumscredi
tedt
otheFundshal
lbeut
il
isedbytheGover
nmentf
ort
hewel
far
e
oftheconsumer
sinsuchmannerasmaybeprescr
ibed.

(
2)TheGov ernme ntortheauthorityspeci
fiedbyits hallmaintai
npr operand
separat
eac countandotherr
elevantr
ecordsinrel
ati
ontot heFundandpr epar
e
an annuals tat
eme ntofaccountsi nsuc hform as maybe pr escri
bedin
consult
ati
onwi tht
heCompt r
oll
erandAudi t
orGeneralofIndi
a.

CHAPTER–XI
I
ASSESSMENT

59.
Everyregi
ster
edpersonshal
lself
-assessthetaxespayableundert
hisActand
fur
nisharet
urnforeacht
axper
iodasspecif
iedundersect
ion39.

60.
(1)Subjecttotheprovisionsofsub-secti
on( 2)
,wher ethetaxabl
eper sonisunable
todeterminet heval
ueofgoodsorser vicesorbot hordeterminet herat
eoft ax
appli
cabletheret
o,hemayr equesttheproperof f
iceri
nwr i
ti
nggivingreasonsfor
paymentoft axonapr ovisi
onalbasisandt heproperof f
icershallpassanor der
,
withi
naper iodnotlatert hanninet
ydaysf rom thedateofr ecei
ptofsuchr equest
,
all
owingpaymentoft axonpr ovisi
onalbasisatsuchr ateoronsuchval ueasmay
bespecifi
edbyhi m.

(
2)Thepaymentoft axonpr ovi
sionalbasi
smaybeal l
owed,ifthetaxabl
eper son
executesabondi nsuchf or
m asmaybepr escr
ibed,andwit
hsuchsuretyorsecurit
y
ast hepr operoffi
cermaydeem f i
t,bi
ndi
ngthet axabl
epersonforpaymentoft he
dif
ferencebet weentheamountoft axasmaybef i
nall
yassessedandtheamountof
taxprovisional
lyassessed.

(
3)Theproperoffi
cershal
l,
withi
naper i
odnotexceedingsi
xmont hsfrom t
hedateofthe
communi cat
ionoftheorderissuedundersub-sect
ion(
1),passt hefi
nalassessment
orderaf
tertaki
ngintoaccountsuchinfor
mationasmayber equiredforfi
nal
izi
ngthe
assessment:

Provi
dedthattheper i
odspeci fi
edi nthi
ssub-sect
ionmay,onsuf f
ici
entcausebeing
shownandf orreasonstober ecordedinwri
ti
ng,beext
endedbytheJointCommissi
oner
orAdditi
onalCommi ssionerforaf urt
herperi
odnotexceedingsi
xmont hsandbyt he
Commi ssi
onerforsuchf ur
therperi
odnotexceedi
ngfouryear
s.
(
4)Ther egi
ster
edper sonshallbel i
ablet
opayi nterestonanytaxpayabl eont hesupply
ofgoodsorser vi
cesorbot hunderpr ovi
sionalassessmentbutnotpai dont hedue
datespecifi
edundersub- section(7)ofsection39ort herulesmadet her
eunder,at
theratespecif
iedundersub- secti
on(1)ofsect i
on50, f
rom thefi
rstdayaf t
erthedue
dateofpaymentoft axi
nr espectofthesai dsuppl yofgoodsorser vicesorbotht i
ll
thedateofactualpayment ,whethersuchamounti spaidbeforeoraftertheissuance
oforderforfi
nalassessment .

(
5)Wheretheregister
edper sonisent
it
ledt
oar ef
undconsequentt otheorderoffi
nal
assessmentundersub- sect
ion(3)
,subj
ecttotheprovi
sionsofsub- sect
ion(8)of
secti
on54,i
nterestshal
lbepaidonsuchref
undasprovi
dedi nsecti
on56.

61.
(1)Thepr operoff
icermayscrut
ini
zetheretur
nandrel
atedpart
icularsfurni
shedby
theregister
edpersont over
if
ythecorrect
nessoftheret
urnandi nform him oft
he
discrepanci
esnoticed,i
fany,insuchmannerasmaybepr escri
bedandseekhi s
explanati
ontheret
o.

(2)I n caset heexpl anat i

on i sf ound accept able,t her egistered person shal lbe
i
nf ormedaccor di
ngl yandnof urtheract ionshal lbet akeni nt hi
sr egard.
(3)Incasenosat i
sf actoryexpl anat ioni sfurnishedwi thi naper iodoft hir
tydaysof
beingi nfor medbyt hepr operof fi
cerorsuchf urtherper iodasmaybeper mittedby
him orwher ether egi steredper son, aft
eraccept ingt hedi screpanci es,f
ailstotaket he
correctivemeasur einhi sr eturnf ort hemont hi nwhi cht hedi screpancyi saccept ed,
thepr operof ficermayi niti
ateappr opriateactioni ncl udi ngt hoseundersect i
on65or
section66orsect i
on67,orpr oceedt odet ermi net het axandot herduesunder
section73orsect ion74.
62.(1)Not wi t
hst andinganyt hingt ot hecont r
ar ycont ainedi nsect i
on73orsect i
on74,
wher ear egisteredper sonf ail
st of ur
nisht her etur nundersect i
on39orsect i
on45,
evenaf tert heser viceofanot i
ceundersect ion46, thepr operof fi
cermaypr oceedt o
assesst het axl iabilit
yoft hesai dper sont ot hebestofhi sj udgementt aki
ngi nto
accountal lther el
evantmat erialwhi chi savai l
abl eorwhi chhehasgat heredand
issueanassessmentor derwi thinaper iodoff iveyear sf r
om t hedat especified
undersect ion44f orf urnishingoft heannualr eturnf ort hef i
nanci alyeart owhi ch
thet axnotpai drelat es.

(
2)Wheretheregist
eredper
sonf ur
nishesavali
dr eturnwit
hint
hirt
ydaysoft heservi
ce
oftheassessmentorderundersub-sect
ion(1),thesaidassessmentordershallbe
deemedt ohavebeenwithdrawnbutt heli
abil
ityforpaymentofint
erestundersub-
secti
on(1)ofsect
ion50orforpaymentoflatefeeundersect
ion47shallconti
nue.

63.
Not withst
andinganyt hingt othecontrarycont ainedinsection73orsect i
on74,
wher eat axableper sonf ai
lstoobtainregist
rationevent houghl i
ablet odosoor
whoser egi
strat
ionhasbeencancel l
edundersub- secti
on(2)ofsect i
on29butwho
wasl i
abletopayt ax,thepr operoffi
cermaypr oceedt oassesst het axli
abil
it
yof
sucht axableper sont ot hebestofhi sjudgementf ortherel
evantt axperiodsand
issueanassessmentor derwithi
naper i
odoff iveyearsfrom thedat especified
undersect ion44f orf urnishi
ngoft heannualr eturnforthefinancialyeartowhi ch
thet axnotpaidrelates:
Provi
dedthatnosuchassessmentor
dershal
lbepassedwi
thoutgi
vingt
heper
sonan
opport
uni
tyofbei
nghear
d.

64.
(1) Thepr operoffi
cermay,onanyevi denceshowi ngataxl iabil
it
yofaper son
comingt ohisnoti
ce,withtheprevi
ouspermissionofAdditi
onalCommi ssi
oneror
JointCommi ssi
oner,
proceedtoassesst
hetaxliabi
lit
yofsuchper sontoprotectthe
int
erestofrevenueandissueanassessmentor der,i
fhehassuf f
ici
entgroundst o
beli
evethatanydelayindoingsomayadversel
yaf f
ectthei
nterestofrevenue:

Provi
ded thatwherethetaxableperson to whom thel
iabil
it
ypertainsi
snot
ascert
ainableandsuchli
abil
it
ypertai
nstosupplyofgoods,
thepersoninchargeofsuch
goodsshal lbedeemedtobet hetaxableper
sonliabl
etobeassessedandl i
ablet
opay
taxandanyot heramountdueunderthissect
ion.

(
2)Onanappl icat
ionmadebyt hetaxablepersonwi t
hinthi
rt
ydaysf r
om thedateof
receiptoforderpassedundersub-secti
on(1)oronhi sownmot ion,i
ftheAdditi
onal
Commi ssi
onerorJointCommissionerconsi
dersthatsuchorderi
ser r
oneous,hemay
withdrawsuchor derandfol
lowtheprocedurelai
ddowni nsecti
on73orsect i
on74.

CHAPTER XI
II
AUDI
T

65.
(1)TheCommi ssi
oneroranyoffi
cerauthorisedbyhi m,bywayofagener alora
specifi
corder
,mayundertakeaudi
tofanyregi st
eredpersonf
orsuchper
iod,
atsuch
frequencyandinsuchmannerasmaybepr escribed.

(
2)Theoff
icer
sr ef
erredtoinsub-sect
ion(1)mayconductaudi
tatt
hepl
aceof
busi
nessoftheregi
ster
edpersonorinthei
rof
fi
ce.

(
3)Theregister
edpersonshallbeinfor
me dbywayofanot i
cenotlessthanf
if
teen
worki
ng day s pr
iortot he conductofaudi tins uch manneras may be
prescr
ibed.
(
4)Theauditunde rsub-sect
ion(1)s hal
lbec ompletedwit
hinape ri
odofthree
monthsfrom thedateofcomme ncementoftheaudi
t:

Provi
dedthatwheret heCommissi
onerissati
sfi
ed thataudi
tinr espectofsuch
register
edpersoncannotbecompl
etedwit
hint
hreemonths,hemay,fort hereasonsto
ber ecordedi
nwrit
ing,
extendt
heper
iodbyafur
therper
iodnotexceedi
ngsi xmonths.

Expl
anati
on.––Fort hepurposesoft hi
ssub-secti
on,t
heexpr essi
on“commencement
ofaudi
t”shallmeant hedateonwhi chtherecordsandot herdocuments,call
edforby
thet
axauthorit
ies,
aremadeavai l
ablebyt her
egister
edpersonort heact
ualinst
it
uti
onof
audi
tattheplaceofbusiness,whicheveri
slat
er.
(
5)Duri
ngthecour
seofaudi
t,t
heaut
hor
isedof
fi
cermayr
equi
ret
her
egi
ster
ed
per
son,
––

(
i)t
oaffor
dhi
mt henecessar
yfaci
li
tyt
over
if
ythebooksofaccountorot
her
document
sashemayrequi
re;

(i
i)tofur
nishsuchinf
ormat
ionashemayr
equi
reandr
enderassi
stancef
ort
imel
y
complet
ionoftheaudi
t.

(
6)Onc onclusi
onofaudi t
,theproperof
ficers hal
l,wi
thint
hirt
ydays,i
nfor
mt he
regi
ster
edpe rson,
whos erecor
dsareaudited,aboutthef
indi
ngs,
hisri
ghtsand
obli
gati
onsandt hereasonsforsuchf
indi
ngs .

(
7)Wheretheauditconduct
edunde rs ub-sect
ion(1)result
sindetect
ionoftaxnot
pai
dors hortpai
dore r
rone ousl
yr ef
unde d,orinputtaxcredi
twronglyavail
ed
orut
il
ised,
theproperof
ficermayi nit
iat
eac ti
onunde rsect
ion73ors ect
ion74.

66.
(1)Ifatanystageofscrut
iny,inquir
y,investi
gationoranyot herproceedingsbef ore
him, anyoff
icernotbel
owt herankofAssi stantCommi ssioner,havi
ngr egardt othe
natureandcompl exi
tyofthecaseandt heinterestofrevenue,isoftheopi nionthat
theval uehasnotbeencor r
ectlydeclaredort hecreditavail
edi snotwi t
hi nthe
normall imi
ts,hemay,wi ththepr iorapprovaloft heCommi ssi
oner,directsuch
regi
st er
edpersonbyacommuni cationinwr it
ingtogethi srecordsincl
udingbooks
ofaccountexami nedandauditedbyachar t
eredaccount antoracostaccount antas
maybenomi natedbytheCommi ssi
oner.

(
2)Thec har
ter
edac countantorc ostaccount
antsonomi nat
e dshall
,wit
hint he
per
iodofninet
yday s,submitareportofsuchauditdul
ysi
gne dandcert
if
iedby
hi
m t ot he sai
d AssistantCommi ssi
onerme nti
oni
ng therei
ns uch other
par
ticul
arsasmaybes pecif
ied:

ProvidedthattheAssist
antCommi ssi
onermay,onanappli
cati
onmadet ohimint hi
s
behalfbytheregi
steredpersonorthechar
ter
edaccount
antorcostaccount
antorforany
materialandsuff
ici
entreason,ext
endthesai
dperi
odbyafurtherper
iodofni
netydays.

(
3)Thepr ovi
sionsofs ub-
s ect
ion(
1)s hallhavee f
fectnot
withstandingt
hatthe
accounts oft he r
e gi
ster
ed person hav e been audi
ted unde rany ot
her
provi
sionsofthisActoranyotherl
awf orthetimebeingi
nf or
ce .

(
4)Theregist
eredpersons hal
lbegi
venanopportunit
yofbe i
ngheardinre spect
ofanymat eri
algatheredonthebasi
sofs pecialaudi
tundersub-sect
ion( 1)
whichisproposedtobeus edi
nanyproceedi
ngsagainsthi
m underthi
sAc tor
ther
ulesmadet her
e under.

(
5)Thee xpensesofthee xaminat
ionandaudi
tofrec or
dsunde rsub-
secti
on(1),
i
ncludingtheremunerationofsuchchar
ter
edac countantorcostaccount
ant,
shallbede t
ermi
ne dandpai dbytheCommi ssi
one rands uchdeter
minati
on
shallbefi
nal
.
(
6)Wherethespeci
alauditconduct
edundersub-sect
ion(1)resul
tsi
ndetect
ionof
taxnotpai
dors hor
tpaidore rr
oneousl
yrefunded,orinputtaxcr
edi
twrongly
avai
ledoruti
l
ised,theproperoffi
cermayiniti
ateacti
onunde rsect
ion73or
sect
ion74.

CHAPTERXIV
I
NSPECTI
ON,
SEARCH,SEI
ZUREANDARREST

67.(1)Wher etheproperoffi
cer,
notbelowtherankofJointCommi ssi
oner,hasreasons
tobel i
evethat
––
(a)at axabl
eper sonhassuppressedanytr
ansacti
onrelati
ngtosupplyofgoodsor
servicesorbot hort hest
ockofgoodsi nhand,orhascl ai
medi nputtaxcr edi
tin
excessofhi sentit
lementunderthisActorhasindul
gedincont r
avent
ionofanyoft he
provisionsofthi
sActort herul
esmadet her
eundertoevadetaxunderthisAct;or

(
b)anypersonengagedi nthebusi
nessoft r
anspor
tinggoodsoranowneror
operat
orofawarehouseoragodownoranyotherplacei
skeepi
nggoodswhi
chhave
escapedpaymentoftaxorhaskepthisaccount
sorgoodsi nsuchamannerasis
l
ikel
ytocauseevasi
onoftaxpayabl
eundert
hisAct,

hemayaut hor
iseinwr i
ti
nganyot heroffcerofSt
i at
et axtoinspectanyplacesof
busi
nessofthetaxabl
epersonorthepersonsengagedinthebusi
nessoftranspor
ti
ng
goodsort
heownerortheoperat
orofwarehouseorgodownoranyotherpl
ace.

(
2)Whe retheproperoffi
cer,notbe l
ow ther ankofJoi ntCommi ssi
oner,eit
her
pursuanttoaninspecti
onc arr
iedoutunde rs ub-sect
ion( 1)orot
herwise,has
reasonstobeli
evethatanygoodsl iabletoc onfi
scationoranydoc ume ntsor
book sorthi
ngs,whichi nhisopinions hallbeus efulf ororrel
evanttoany
proceedi
ngsunde rthi
sAc t,ares ecret
edi nanypl ac e,hemayaut horisein
writ
inganyotheroff
icerofStat
etaxt osearchands ei
zeormayhi ms el
fsearch
ands ei
zesuchgoods ,
docume ntsorbook sorthings:

Provi
dedthatwhereiti
snotpracti
cablet
oseizeanysuchgoods,t
heproperof
ficer
,or
anyoffi
ceraut
horisedbyhim,mayser veontheownerorthecust
odianofthegoodsan
ordert
hatheshallnotr
emove,partwit
h,orother
wisedealwi
tht
hegoodsexceptwiththe
previ
ouspermissi
onofsuchoffi
cer:

Provi
dedfur
therthatt
hedocumentsorbooksort
hingssosei
zedshal
lber
etai
nedby
suchoffi
ceronlyforsolongasmaybenecessar yforthei
rexami
nati
onandforany
i
nquiryorpr
oceedi
ngsunderthi
sAct.

(
3)Thedoc uments,book sort hi
ngsr ef
err
edtoi ns ub-
secti
on( 2)oranyothe r
documents,booksort hingspr oducedbyataxablepersonoranyotherperson,
whichhavenotbe enre l
ieduponf ortheissueofnoticeunderthisActorthe
rul
esmadet hereunder,s hal
lber et
urnedtos uchpersonwithinape r
iodnot
exceedi
ngthirt
yday soft heissueofthesai
dnot i
ce.
(
4)Theof f
icerauthori
sedundersub-
section(2)s hallhavethepowe rtosealor
breakope nthedoorofanypremisesort obr eakope nanyalmir
ah,elect
roni
c
devices,box,r
eceptacl
einwhi
chanygoods ,accounts,r
egist
ersordocume nt
s
ofthepe rsonaresuspect
edtobeconc eal
ed, whereac cesstosuchpremises,
al
mi r
ah,e l
ectr
onicdevi
ces,
boxorreceptacl
eisde nied.

(
5)Thepe rsonfr
om whos ecus t
odyanydoc ume nt
sar eseizedunders ub-sect
ion
(2)shallbeenti
tl
edt omak ec opiest
he r
e ofortakee xt
ractst
he r
ef rom inthe
presenceofanaut hori
sedofficeratsuchpl aceandt i
meass uchof fi
cermay
i
ndicatei nthi
s be hal
fexc eptwhe r
e mak i
ng suchc opi
es ort aking such
extr
acts may,int he opi
nion oft he properof f
icer
,pr ej
udi
cial
lyaf fectthe
i
nv est
igati
on.

(
6)Thegoodss osei
ze dundersub-
secti
on(2)s hallberel
eased,onaprovi
sional
basi
s,uponexecuti
onofabondandf urni
shingofas ecur
it
y,insuchmanne r
andofs uchquantum,respect
ivel
y,asmaybepr escr
ibedoronpay mentof
appl
icabl
etax,
int
erestandpenal
typayable,
ast hecasemaybe .

(
7)Whe r
eanygoodsareseizedundersub-
section(2)andnonot i
ceinrespect
ther
eofisgi
venwi
thi
nsixmont hsoft
heseizureofthegoods,t
hegoodss hal
l
beretur
nedtot
heper
sonfrom whosepossessiont
heyweresei
zed:

Provi
dedt
hatt
heperiodofsixmonthsmay,onsuf fi
cientcausebei
ngshown,be
ext
endedbyt
hepr
operof
ficerf
oraf
urt
herper
iodnotexceedingsi
xmonths.

(
8)TheGov ernme ntmay ,hav i
ngre gardtot hepe ri
shabl
eorhaz ardousnat ureof
anygoods ,depr eci
ati
oni nthev al
ueoft hegoodswi ththepass ageoftime,
cons t
rai
nts of s torage s pace f or the goods or any ot herr el
evant
cons i
der
ations,bynotifi
cati
on,s peci
fythegoodsorc lassofgoodswhi chshall
,
ass oonasmaybeaf t
eritsseizureunde rs ub-
secti
on( 2)
,bedispos edofbythe
properoffi
ceri
ns uc hmanne rasmaybepr escr
ibed.

(
9)Whe r
eanygoods ,bei
nggoodss peci
fi
edunders ub-
sect
ion(8),havebeen
sei
zedbyapr operoffi
cer
,oranyoffi
ceraut
hor
isedbyhim undersub-
sect
ion
(2)
,hes hal
lprepareaninvent
oryofsuchgoodsins uchmannerasmaybe
prescr
ibed.

(
10) Thepr ovisi
onsoft heCodeofCr i
mi nalProcedur
e,1973,r
elati
ngtosearch
ands ei
zure,shall
,s ofarasmaybe ,applytos ear
chands ei
z ur
eundert hi
s
secti
ons ubjecttothemodi fi
cat
ionthats ub-sect
ion(5)ofsecti
on165oft he
saidCodes hallhaveeffectasifforthewor d“Magistr
ate”
,whereveri
toccurs,
theword“ Commi ssi
oner”weresubs t
it
uted.
(
11) Whe retheproperof f
icerhasr easonstobe li
evethatanype rsonhase vaded
orisattempti
ngt oe vadet hepay me ntofanyt ax,hemay ,forreasonst obe
recor
dedinwr it
ing,
s ei
zetheac counts,register
sordoc ume nt
sofs uchpe rson
producedbeforehim ands hallgrantar eceiptforthes ame ,
ands hallr
etai
nt he
samef ors olongasmaybene cessaryi nc onne ct
ionwi t
hanypr oceedings
underthi
sAc tortherulesmadet hereunde rforprosecution.

(
12) TheCommi ssi
one roranof fi
ce rauthori
sedbyhi m mayc ausepurchaseof
anygoodsors er
v i
cesorbot hbyanype rsonaut horisedbyhim f r
om the
businesspremisesofanyt axabl
epe rson, t
oc hec ktheissueoftaxinvoi
cesor
bil
l
sofs upplybys ucht axabl
epe rson,andonr eturnofgoodss opurchasedby
suchof f
icer
,s uchtax ablepe r
sonoranype rsoni nc hargeofthebus i
ness
premisesshallref
undt heamounts opai dtowar dst hegoodsaftercancel
li
ng
anytaxinvoi
ceorbi l
lofs upplyissuede arl
ier
.

68.
(1)TheGovernmentmayrequi
ret
hepersoninchar
geofaconveyancecar
ryi
ngany
consi
gnmentofgoodsofval
ueexceedi
ngsuchamountasmaybespecifi
edtocar
ry
wit
hhim suchdocument
sandsuchdevicesasmaybeprescr
ibed.

(
2)Thedet
ail
sofdocument
srequi
redt
obec arr
iedundersub-
sect
ion(
1)shal
lbe
val
i
dat
edinsuchmannerasmaybeprescr
ibed.

(
3)Whe reanyc onveyancerefer
redtoins ub-secti
on( 1)isint
ercept
edbyt he
properoff
iceratanyplace,hemayr equir
et hepe rsoninchargeofthesaid
conveyancetoproducethedoc ument
spr escri
bedunde rthesaidsub-
sect
ion
andde vi
cesforver
ifi
cat
ion,andthesai
dpe rsons hallbel
iabl
etoproducethe
docume nt
sandde vi
cesandalsoall
owtheinspe ct
ionofgoods.

69.
(1)Wher e theCommi ssionerhas r easons to believe that aper son has
commi ttedanyof f
encespecifiedincl
ause(a)orcl
ause( b)orclause(c)orclause
(d)ofsub- sect
ion(1)ofsection132whi chispuni
shableunderclause(i)or(ii
)of
sub-section(1)
,orsub-secti
on( 2)ofthesaidsect
ion,hemay,byor der,authori
se
anyof f
icerofSt at
etaxtoarrestsuchperson.

(
2)Whereape rsonisar restedunders ub-
secti
on( 1)foranof fences peci
fi
ed
undersub-secti
on(5)ofs ecti
on132,theoff
icerauthor
isedtoarr
e stt
hepe r
son
shal
linfor
ms uchpe r
sonoft hegroundsofar r
estandpr oducehim beforea
Magistr
atewithint
we nt
yf ourhours.

(3)Subjectt
otheprovisionsoftheCodeofCri
minalPr
ocedure,
1973,--
(a)whereaper sonisar rest
edundersub-
sect
ion(1)f
oranyof f
ence speci
fiedunder
sub-sect
ion(4)ofsect
ion132, heshal
lbeadmitt
edtobailori
ndefaultofbai
l,
forwarded
tothecustodyoftheMagi strat
e;

(b)int hecaseofanon- cogni

zableandbail
ableoff
ence, t
heDeput
yCommi ssi
oneror
theAssi stantCommi ssionershall
,forthepurposeofr el
easinganar
restedpersonon
bailorot herwise,havet hesamepower sandbesubj ecttothesamepr ovi
sionsasan
off
icer-
in-chargeofapol i
cestati
on
70.(1)Thepr operof fi
cerunderthisActshal
lhavepowert osummonanyper sonwhose
 att
endance he consider
s necessar
y ei
therto gi
ve evi
dence orto produce a
documentoranyot herthi
nginanyinqui
ryinthesamemanner ,asprovi
dedinthe
caseofacivi
lcourtunderthepr
ovisi
onsoftheCodeofCi
vilPr
ocedur
e,1908.

(
2)Everysuc hinqui
ryrefer
redtoi
ns ub-
sect
ion( 1)shal
lbedeeme dtobea
“j
udici
alproceedi
ngs”wit
hint
hemeani
ngofs ect
ion193andsect
ion228oft
he
I
ndianPe nalCode.

71.
(1)Anyof fi
cerundert hisActaut hori
sedbyt heproperof
fi
cernotbel owt herankof
JointCommi ssioner,shallhaveaccesst oanypl aceofbusi nessofar egi
stered
persont oinspectbooksofaccount ,document
s,comput ers,computerpr ograms,
comput ersof t
war ewhet herinstal
ledi nacomput erorot her
wi seandsuchot her
thi
ngsashemayr equir
eandwhi chmaybeavai l
ableatsuchpl ace,f
orthepur poses
ofcarryingoutanyaudi t,scruti
ny,veri
fi
cati
onandchecksasmaybenecessar yto
safeguardthei nter
estofr evenue.

(
2)Everypersoninchargeofplaceref
erredtoi
ns ub-secti
on(1)s hal
l,
ondemand,
makeav ai
labl
etotheoffi
cerauthori
sedunders ub-sect
ion(1)ortheaudi
tparty
deputedbyt heproperoffi
cerorac ostaccountantorc hart
e r
edaccountant
nominatedundersecti
on66––

(i
)suchrecordsasprepar
edormaint
ainedbytheregi
ster
edper
sonanddecl
ared
t
otheproperof
fi
cerinsuchmannerasmaybeprescr
ibed;

(
ii
)tr
ialbal
anceori
tsequi
val
ent
;

(
ii
i)st
atement
sofannual
financi
alaccount
s,dul
yaudi
ted,
wher
everr
equi
red;

(
iv)costaudi
trepor
t,i
fany,
undersect
ion148oft
heCompani
esAct
,2013;

(
v)theincome-
taxaudi
trepor
t,i
fany,undersect
ion44ABoft
heI
ncome-
taxAct
,
1961;and

(
vi)anyot
herr
elevantr
ecor
d,

forthe scr
uti
nybyt he of
fi
ceroraudi tpartyorthe char
tered account
antorcost
account
antwithi
naper i
odnotexceedingf i
ft
eenworki
ngdaysf rom t
hedaywhensuch
demandi smade,orsuchfurt
herperi
odasmaybeal l
owedbyt hesaidoffi
cerort
heaudi
t
part
yorthechart
eredaccountantorcostaccount
ant
.

72.(1)Alloff
icersofPol i
ce,Rail
ways,Customs,andt hoseof f
icer
sengagedi nthe
coll
ecti
onofl andr evenue,i
ncludi
ngvill
ageoff
icers,offi
cersofcentralt
axand
off
icers of the Union terr
it
oryt ax shal
lassist the proper of
fi
cersint he
i
mpl ementati
onofthisAct.
(
2) TheGov er
nme ntmay ,bynotif
icati
on,empowerandr equir
eanyot hercl
as sof
offi
cerstoas sistt
hepr operof f
icer
sint hei
mpl eme ntati
onoft hisActwhe n
call
edupont odos obyt heCommi ssi
oner.
 CHAPTER XV
DEMANDSANDRECOVERY

73.
(1)Wher ei tappear stotheproperof f
icert hatanyt axhasnotbeenpai dorshor t
paidorer roneousl yref
unded,orwher einputt axcredithasbeenwr ongl yavailedor
uti
lisedf oranyr eason,ot
herthant hereasonoff raudoranywi l
fulmisstatementor
suppr essionoff actstoevadet ax,heshal lservenot i
ceont heper sonchar geable
witht axwhi chhasnotbeensopai dorwhi chhasbeensoshor tpaidort owhom t he
refundhaser roneouslybeenmade,orwhohaswr ongl yavai
ledorut i
li
sedi nputtax
credit,requi ri
ng him to show causeast o whyheshoul d notpayt heamount
specif i
edi nt henot i
cealongwi t
hi nt
erestpayablet hereonundersect ion50anda
penal tyleviableundertheprovisi
onsoft hisActort herulesmadet hereunder .

(
2)Thepr operoff
icershal
lissuethenoti
ceundersub-
sect
ion(1)atleastt
hree
monthspr iort
ot hetimelimitspeci
fi
edi
ns ub-
sect
ion(10)forissuanceof
order
.

(
3)Whe reanot i
cehasbe enissuedf oranype ri
odunders ub-sect
ion(1),t
he
properoff
icermays erveastatement,contai
ningthedet
ail
soft axnotpaidor
shortpaid ore r
roneousl
yre f
unded ori nputt axcr
edi
twr ongl
yav ai
led or
uti
li
sedforsuchpe ri
odsothert
hanthos ecoveredundersub-secti
on(1),
onthe
personchargeabl
ewi t
htax.

(
4)Thes er
viceofsuchstatementshal
lbede eme dtobes er
viceofnoti
ceons uch
personundersub-secti
on(1),subj
ecttothec ondi
tionthatthegroundsreli
ed
uponfors uchtaxperi
odsot hert
hanthos ecoveredunde rsub-
secti
on(1)are
thesameasar eme nt
ionedintheearl
i
e rnoti
ce.

(
5)Thepe rson chargeablewithtaxmay ,be for
es er
viceofnot iceunde rsub-
secti
on(1)or,asthec asemaybe ,thestat
eme ntunde rsub-
secti
on( 3)
,paythe
amountoft axal ongwi thint
erestpayablethereonunde rs ect
ion50ont he
basisofhisownas c er
tai
nmentofs uchtaxort het axasas certai
nedbyt he
properof
ficerandinformtheproperoff
icerinwrit
ingofs uchpayme nt.

(
6)Theproperoff
icer,onr ecei
ptofs uchinf
ormation,shal
lnots erveanynot i
ce
undersub-
secti
on( 1)or,asthec asemaybe ,t
hes tat
eme ntundersub-sect
ion
(3)
,inr
espectofthet axsopaidoranype nal
typay abl
eunde rtheprovi
sionsof
thi
sActortherul
esmadet hereunder.

(
7)Wheret heproperofficeri
soft heopi ni
onthattheamountpai dundersub-
sect
ion(5)fal
lsshortoftheamountac tual
lypayabl
e,heshallpr
oceedt
oissue
t
henot i
c easprovi
de dforinsub-sect
ion(1)inrespectofsuchamountwhich
f
all
ss hortoft
heamountac t
ual
lypayable.
(
8)Whereanype rsonchargeablewithtaxundersub-
secti
on( 1)orsub-sect
ion(3)
paysthes aidtaxalongwi t
hi nter
estpayabl
eunde rs ecti
on50wi thi
nt hi
rty
daysofi ssueofs how c ausenot i
ce,no penal
tys hallbepay abl
eand al l
proceedi
ngsinrespectofthesaidnoti
ceshallbedeeme dtobeconc l
uded.

(
9)Thepr operofficershal
l,aft
erc onsi
deri
ngther epr
esent
ati
on,ifany,madeby
personc hargeabl
ewi t
ht ax,
de ter
minetheamountoftax,i
nter
es tandapenal
ty
equi
v al
entt otenpe rcent.
oft axortenthousandrupees,whicheveri
shigher
,
duef r
om s uchpersonandi ssueanorde r
.

(
10) Theprope roff
icershallissuetheorderundersub-sect
ion (9)withinthree
yearsf
rom theduedatef orfurni
shingofannualretur
nforthefinanci
aly eart
o
whichthetaxnotpai dors hortpaidori nputtaxc r
edi
twr onglyav ail
edor
ut
ili
sedrel
atestoorwit
hint hreeyearsf
rom thedateoferr
oneousr ef
und.

(
11) Notwithst
andinganythi
ngc ontai
nedins ub-sect
ion(6)orsub-
s ect
ion(8)
,
penal
tyunde rsub-sect
ion (
9)s hal
lbepay ablewhe reanyamountofs elf
-
assessedtaxoranyamountc oll
ectedastaxhasnotbe enpai
dwi t
hinape r
iod
ofthi
rt
yday sfr
om theduedateofpay mentofsuchtax.

74.
(1)Wher eitappear stot hepr operoff
icert hatanyt axhasnotbeenpai dorshor t
paidorer roneousl yref
undedorwher ei nputt axcredithasbeenwr onglyavailedor
uti
lisedbyr easonoff raud,oranywi l
fulmi sst
atementorsuppr essionoff actsto
evadet ax,heshal lservenot iceontheper sonchar geabl
ewi t
htaxwhi chhasnot
been so pai d orwhi ch has been so shor tpaid ort o whom t he refund has
erroneousl ybeenmade,orwhohaswr ongl yavail
edorut i
li
sedinputt axcr edi
t,
requi r
inghi mt oshow causeast owhyheshoul dnotpayt heamountspeci f
iedin
thenot iceal ongwi thi nterestpayabl
et hereonundersect i
on50andapenal t
y
equi valenttot hetaxspeci f
iedi nt
henotice.

(
2)Thepr operof
fi
cershal
lissuet
henot i
ceundersub-
s ect
ion(
1)atleastsi
x
monthspr i
ortotheti
melimitspeci
fi
edinsub-
secti
on( 10)f
ori
ssuanceof
order
.

(
3)Whe reanot i
cehasbe enissuedf oranype ri
odunders ub-sect
ion(1),t
he
properoff
icermays erveastatement,contai
ningthedet
ail
soft axnotpaidor
shortpaid ore r
roneousl
yre f
unded ori nputt axcr
edi
twr ongl
yav ai
led or
uti
li
sedforsuchpe ri
odsothert
hanthos ecoveredundersub-secti
on(1),
onthe
personchargeabl
ewi t
htax.

(
4)Thes ervi
ceofs t
atementunde rsub-sect
ion(3)s hal
lbede emedt obes er
v i
ce
ofnoticeunde rsub-
sect
ion(1)ofs ecti
on73, subj ecttothecondit
iont hatthe
groundsr el
ieduponinthesaids tatement,exceptt hegroundoff raud,orany
wilf
ul-
mi sst
atementorsuppr
e ssi
onoff actstoev adet ax,
forper
iodsot herthan
thosec overedundersub-sect
ion( 1)aret hes ameasar eme nti
one dint he
earl
iernoti
ce.
(
5)Thepe rs on chargeablewithtaxmay ,befor
es erviceofnot iceunders ub-
sect
ion( 1),paytheamountoft axalongwithinter
e stpayableundersect
ion50
andape nal
tye quival
enttofi
ft
ee npercent
.ofsuc htaxont hebasisofhi
sown
ascert
ainme ntofs ucht axorthetaxasas cer
tai
ne dbyt heprope rof
fi
cerand
i
nformt hepr operoffi
cerinwri
tingofsuchpayme nt.

(
6)Theproperof
fi
c er
,onr ecei
ptofsuchinf
ormat
ion,shal
lnotser
veanynotice
undersub-
sect
ion( 1)
,inrespectofthetaxsopaidoranype nal
typayable
undert
heprovi
sionsofthi
sAc tort
herul
esmadethereunder
.

(
7)Wheret heproperofficeri
soft heopi ni
onthattheamountpai dundersub-
sect
ion(5)fal
lsshortoftheamountac tual
lypayabl
e,heshallpr
oceedt
oissue
t
henot i
c easprovi
de dforinsub-sect
ion(1)inrespectofsuchamountwhich
f
all
ss hortoft
heamountac t
ual
lypayable.

(
8)Whereanype rsonc hargeabl
ewi t
htaxunde rsub-
sect
ion(1)paysthesaidt ax
al
ongwi thi
nter
e stpayabl
eunde rsect
ion50andape naltyequi
val
enttotwe nty
fi
ve pe rcentofs ucht ax wit
hinthirt
y days ofissue ofthe noti
c e,all
proceedi
ngsinrespectofthes ai
dnoti
c eshal
lbedeeme dtobeconcluded.

(
9)Theproperof
ficershall
,afterconsi
de r
ingt
her epresent
ati
on,ifany,madeby
thepersonchargeablewitht ax,deter
minet heamountoft ax,int
erestand
penal
tyduefr
om s uchpersonandi ssueanorder.

(
10) Theproperoff
icershal
lissuetheorderunders ub-sect
ion(9)wit
hinape r
iod
offi
veyear
sf r
om theduedat eforfur
nishi
ngofannualr eturnfort
hef i
nancial
yeartowhi
chthet axnotpaidors hor
tpaidori nputtaxc redi
twronglyavai
led
oruti
l
isedr
elat
estoorwi t
hinfiveyear
sfrom thedat eoferroneousref
und.

(
11) Whe r
eanype rsonservedwi
t hanorderissuedunders ub-sect
ion(9)pays
t
het axal ongwi thint
erestpayablether
eonunde rsecti
on50andape nal
ty
equi
valenttof i
ftypercent
.ofsuc htaxwithi
nthir
tydaysofc ommuni cat
ionof
t
heor der,allproceedi
ngsinrespectofthes ai
dnoticeshallbede emedt obe
concl
ude d.

Expl
anat
ion1.
–Fort
hepur
posesofsect
ion73andt
hissect
ion,
—

(i
)theexpr
essi
on“ al
lproceedi
ngsi
nrespectoft
hesai
dnot
ice”shal
lnoti
ncl
ude
pr
oceedi
ngsundersecti
on132;

(i
i)
wher ethenot
iceunderthesamepr oceedi
ngsi si
ssuedt
othemai nper
sonliableto
paytaxandsomeot herper
sons,andsuchpr oceedi
ngsagai
nstthemainpersonhave
been concluded undersecti
on 73 orsecti
on 74,theproceedingsagai
nstal lthe
personsliabl
etopaypenaltyundersecti
ons122,125,129and130ar edeemedt obe
concluded.

Expl
anat
ion2.––Fort
hepur posesofthi
sAct,theexpressi
on“suppr
essi
on”shal
l
meannon-decl
arat
ionoffact
sori nfor
mati
onwhichat axableper
sonisrequi
redto
declareint
heret
urn,st
atement,
repor
toranyotherdocumentf
urni
shedundert
hisActor
ther ul
esmadet her
eunder,orf
ail
uretofur
nishanyinfor
mati
ononbeingaskedf or
,in
writ
ing,bythepr
operoff
icer.

75.
(1)Wheretheserviceofnoticeorissuanceoforderisst
ayedbyanorderofacour
t
orAppellat
eTribunal,theperiodofsuchst ayshallbeexcl
udedi
ncomput i
ngthe
peri
odspecifi
edinsub- sect
ions(2)and( 10)ofsecti
on73orsub-
secti
ons (
2)and
(10)ofsect
ion74,ast hecasemaybe.

(
2)Whe reanyAppe ll
ateAut hori
tyorAppell
ateTr i
bunal orc ourtconcludesthatthe
noti
cei ssuedunde rs ub-secti
on(1)ofs e ct
ion74i snots ustai
nablef orthe
reasonthatt hec hargesoff raudoranywi lf
ulmi sstateme ntors uppressionof
fact
st oev adet axhasnotbe enestabl
ishedagai nstt hepe rsont owhom t he
noti
cewasi s sued,thepr operoff
icershalldeter
mi net het axpay abl
ebys uch
person,dee mingasi fthenot i
cewereissue dunde rs ub-secti
on( 1)ofs ect
ion
73.

(
3)Whereanyorde ri
srequir
edt obeissuedinpur suanc eofthedirecti
onofthe
Appell
ateAut
horit
yorAppe l
lat
eTribunalorac ourt
,s uchordershallbei
ssued
wit
hintwoyearsfr
om thedateofcommuni cat
ionoft hes ai
ddirect
ion.

(
4)Anoppor tunit
yofhe ari
ngs hallbegrant
e dwher
ear equestisr
ecei
vedin
wri
ti
ngf r
om t heper
s onchargeabl
ewithtaxorpenal
ty,orwhe r
eanyadver
se
deci
sionisc ont
emplatedagai
nstsuchperson.

(
5)Theproperoffi
cershal
l
, i
fsuf
fi
cientcausei
sshownbytheper
sonchar
ge abl
e
wit
htax,grantti
met othesai
dpe rsonandadj
our
nthehear
ingforr
easonsto
berecor
dedinwr i
ti
ng:

Provi
dedthatnosuchadjour
nmentshal
lbegr
ant
edf
ormor
ethant
hreet
imest
oa
per
sonduringthepr
oceedi
ngs.

(
6)Thepr
ope rof
fi
cer
,inhi
sor
der
,shal
lsetoutt
her
elevantf
act
sandt
hebasi
sof
hi
sdeci
sion.

(
7)Theamountoftax,i
nter
estandpe nal
tydemande dintheordershal
lnotbei
n
excess oft
he amounts peci
fi
e dint he not
ice and no demand shal
lbe
conf
irmedonthegr
oundsotherthanthegroundsspeci
fiedi
nthenoti
ce.

(
8)Whe r
etheAppe l
lateAuthor
it
yorAppe l
lat
eTr ibunalorc our
tmodi f
iesthe
amountoftaxdet er
minedbythepr operoffi
cer,theamountofi nt
erestand
penal
tyshal
lst
andmodi f
iedaccor
dingl
y,taki
ngintoaccounttheamountoftax
somodif
ied.

(
9)Theinter
estonthetaxs hortpaidornotpaidshallbepayabl
ewhet
herornot
speci
fi
edintheorderdet
e r
mi ni
ngthetaxl
iabi
li
ty.
(
10) Theadjudi
cat
ionproceedi
ngsshallbedeemedtobeconcluded,
ift
heorder
i
snotissuedwit
hinthreeyearsasprovi
dedforinsub-
sect
ion(10)ofsect
ion
73orwi
thinfi
veyear
saspr ovi
dedforinsub-
sect
ion(
10)ofsecti
on74.

(
11) Ani ssueonwhi chtheAppe llat
eAut horit
yort heAppe l
lateTr i
bunalort he
HighCourthasgi venitsdec i
s i
onwhi chi sprejudi
cialtot hei nterestofreve nue
i
ns omeot he rpr
oceedingsandanappe altotheAppe l
lateTr ibunalort heHi gh
CourtortheSupr emeCour tagai nstsuc hdec i
sionoft heAppe l
l
ateAut hori
tyor
theAppe l
lat
eTr i
bunalort heHi ghCour tispe ndi
ng,thepe riods pe ntbetwe en
thedateoft hede ci
sionoft heAppe ll
ateAut horit
yandt hatoft he Appe ll
ate
Tri
bunalort hedateofde cisionoft heAppe l
lateTribunalandt hatoftheHi gh
Courtorthedat eoft hede cisionoft heHi ghCour tandt hatoft heSupr eme
Courtshallbee xcl
udedinc omput i
ngt hepe r
iodrefe r
redt oi ns ub-secti
on( 10)
ofsecti
on73ors ub-sect
ion(10)ofs ection74 whe repr oc eedingsar eini
tiated
bywayofi ssueofas howc ausenot iceunde rthesaids ec ti
ons .

(
12) Not wit
hst
andingany thi
ngcontainedinsect
ion73ors ect
ion74,whe r
eany
amountofs el
f-
ass essedtaxi n accor
dancewithar et
urnfurni
shed under
secti
on39r emainsunpai d,ei
therwhollyorpart
ly,oranyamountofi nter
est
payableons uchtaxr emainsunpaid,thesames hallberecover
edunde rthe
provi
sionsofsecti
on79.

(
13) Whe reanype nalt
yisimposedundersect
ion73orsect
ion74,nopenal
tyf
or
thes ameac toromi ssi
ons hal
lbeimposedont hesamepe rsonunderany
otherprovi
sionofthi
sAc t
.

76.
(1)Notwithstandinganythingt othecont rar
ycont ainedi nanyor derordirectionof
anyAppel l
ateAut hor
it
yorAppel l
ateTribunalorcour torinanyot herprovisionsof
thi
sActort her ulesmadet her
eunderoranyot herl aw forthet i
mebei nginf orce,
everypersonwhohascol lectedfrom anyotherper sonanyamountasr epresenting
thetaxundert hisAct,andhasnotpai dt hesaidamountt otheGover nment ,shall
fort
hwit
h payt hesaid amountt otheGover nment ,ir
respecti
veofwhet herthe
suppli
esinr espectofwhi chsuchamountwascol l
ect edar etaxableornot.

(
2)Whe r
eanyamountisrequir
edt obepai dtot heGov ernmentundersub-
sect
ion
(
1),andwhichhasnotbeens opaid,t
hepr ope roff
icermays er
veontheperson
l
iabl
et opaysuchamountanot icerequir
inghi mt oshowc auseastowhyt he
sai
damountass peci
fi
edi nt henot i
ce,s houldnotbepai dbyhi m tothe
Governmentandwhyape nal
tye qui
valenttot heamounts peci
fi
edinthenot
ice
shoul
dnotbeimposedonhi m underthepr ovisi
onsoft hi
sAct.

(
3)Theproperof
fi
c ershall
,aft
erconsider
ingtherepresent
ati
on,ifany,madeby
theper
sononwhom t henoti
ceisse r
vedunders ub-
secti
on( 2)
,deter
minet
he
amountdue from s uch per
son and ther
eupon such person shal
lpaythe
amountsodetermined.
(
4)Thepe r
s onref
err
e dtoins ub-sect
ion(1)shalli
naddit
iontopayi
ngtheamount
ref
erredt oi
ns ub-sect
ion( 1)ors ub-
sec t
ion(3)al
sobel i
abletopayint
erest
ther
eonatt heratespec i
fi
edunde rs ect
ion50f r
om t
hedates uchamountwas
col
lectedbyhimt othedates uchamounti spaidbyhimt otheGover
nment.

(
5)Anopport
uni
tyofhear
ingshal
lbegrantedwher
ear equesti
sreceivedi
n
wr
it
ingf
rom t
heper
sontowhom t
henot
icewasi
ssuedt
os howcause.

(
6)Theproperof
fi
cershal
lissueanor
derwi
thi
noneyearf
rom t
hedat
eofi
ssueof
thenot
ice.

(
7)Whe r
etheissuanceofor
derisst
ayedbyanorderofthecour
torAppe l
l
ate
Tri
bunal
,theperi
odofsuchst
ayshal
lbeexcl
udedi
nc omput
ingtheper
iodof
oneyear
.

(
8)Thepr
ope rof
fi
cer
,inhi
sor
der
,shal
lsetoutt
her
elevantf
act
sandt
hebasi
sof
hi
sdeci
sion.

(
9)Theamountpai dt
ot heGovernmentundersub-
sect
ion(
1)orsub-
secti
on(3)
shal
lbeadjust
edagainstt
hetaxpayabl
e,i
fany,byt
hepersoni
nrel
ati
ontot
he
suppl
iesr
efer
redtoinsub-
secti
on(1)
.

(
10) Whereanys ur
plusisl ef
taftertheadjust
mentundersub-
sect
ion(9)
,the
amountofsuchsurpl
uss hallei
therbecredi
tedt
otheFundorref
undedtothe
per
sonwhohasbor netheincidenceofsuchamount
.

(
11) Thepersonwhohasbornet
heincidenceoftheamount ,mayappl
yfort
he
r
efundoft
hes amei
naccor
dancewit
ht heprovi
sionsofsect
ion54.

77.
(1)Aregisteredper
sonwhohaspai dthecent r
altaxandSt at
etaxonat r
ansacti
on
consi
deredbyhi mt obeanintr
a-St
atesupply,butwhichissubsequent
lyhel
dt obe
anint
er-
St atesuppl
y,shal
lberef
undedtheamountoft axessopai
dinsuchmanner
andsubjecttosuchcondit
ionsasmaybepr escribed.

(
2)Ar egi
ster
edpe rsonwhohaspai dint
egr
atedt
axonat r
ansact
ionconsi
der
edby
himt obeani nter-St
atesuppl
y,butwhi
c hi
ssubsequent
lyheldt
obeani nt
ra-
Statesupply,shallnotberequi
redtopayanyint
erestontheamountofState
taxpayable.

78.
Anyamountpayablebyataxablepersoninpursuanceofanorderpassedundert
his
Actshal
lbepaidbysuchper sonwi t
hinaperi
odoft hreemonthsfr
om thedateof
ser
viceofsuchor
derfai
li
ngwhi chrecover
yproceedingsshal
lbeini
ti
ated:

Provi
dedthatwheret
heproperof
fi
cerconsidersitexpedienti
ntheint
erestofr
evenue,
hemay,f orr
easonstoberecordedinwrit
ing,requir
et hesaidtaxabl
eper sont
omake
suchpaymentwithi
nsuchperi
odlessthanaper i
odoft hreemonthsasmaybespeci fi
ed
byhim.

79.
(1)Wher
eanyamountpayabl
ebyaper
sont
otheGover
nmentunderanyoft
he
 provi
sionsofthisActortherul
esmadet
hereunderi
snotpaid,t
heproperoff
icer
shallproceed t
orecovertheamountbyoneormor eofthefoll
owing modes,
namely:––

(
a)t heproperoffi
cermaydeductormayr equi
reanyotherspeci
fi
edoff
icert
o
deducttheamountsopayabl efr
om anymoneyowi ngtosuchpersonwhichmaybe
underthecontroloft
heproperof
fi
cerorsuchot
herspeci
fi
edoffi
cer
;

(b)theproperof
fi
cermayr ecoverormayr equi
reanyot herspecif
iedof
ficerto
recovertheamountsopayabl
ebydet ai
ningandsell
inganygoodsbel ongi
ngtosuch
personwhi chareunderthecontroloft hepr
operof f
icerorsuchot herspecif
ied
offi
cer;

(c)(i)t
heproperoff
icermay,byanot i
ceinwrit
ing,r
equireanyotherpersonfr
om
whom moneyi sdueormaybecomeduet osuchper sonorwhohol dsormay
subsequentl
yholdmoneyf ororonaccountofsuchperson,topaytotheGovernment
eit
herf or
thwit
hupont hemoneybecomi ngdueorbei nghel d,orwithi
nt heti
me
specif
iedinthenoti
cenotbeingbeforethemoneybecomesdueori sheld,somuch
ofthemoneyasi ssuffi
cientt
opaytheamountduef rom suchpersonorthewholeof
themoneywheni tisequaltoorl
essthanthatamount;

(i
i)everypersont owhom t henot i
ceisissuedundersub- cl
ause(i
)shal lbe
boundt ocomplywi t
hsuchnot i
ce,andi nparti
cul
ar,whereanysuchnot iceis
i
ssuedt oapostof f
ice,banki
ngcompanyorani nsur
er,i
tshallnotbenecessaryto
produceanypassbook,deposi treceipt
,pol
icyoranyot herdocumentf orthe
purposeofanyent r
y,endorsementort heli
kebei
ngmadebef orepaymentismade,
notwithstandi
nganyrule,pr
acti
ceorr equi
rementtot
hecontrary;

(
ii
i)i
ncaset hepersont
owhom anot iceundersub-
clause(
i)hasbeenissued,
fai
lstomaket hepaymenti npursuancether
eoftotheGovernment ,heshal
lbe
deemedt obeadef ault
eri
nrespectoftheamountspecifi
edint henoti
ceandall
theconsequencesofthi
sActortherul
esmadet her
eundershal
lfoll
ow;

(iv)t
heof
fi
cerissui
nganoti
ceundersub-
clause(
i)may,
atanyt
ime,amendor
revokesuchnoti
ceorextendt
heti
meformakinganypaymenti
npursuanceoft
he
notice;

(v)anyper sonmaki nganypaymentincompl i

ancewithanot i
ceissuedunder
sub-clause(i)shallbedeemedtohavemadet hepaymentundert heauthor
it
yof
theper sonindefaultandsuchpaymentbeingcredit
edtotheGovernmentshallbe
deemedt oconsti
tuteagoodandsuffi
cientdi
schargeoft
heliabi
li
tyofsuchperson
totheper sonindefaulttot
heext
entoftheamountspecif
iedintherecei
pt;

(vi
)anyper
sondi schargi
nganyl i
abilit
ytotheper sonindefaultaft
erservi
ceon
hi
m ofthenoticeissuedundersub- clause(i)shal lbepersonallyli
abletothe
Gover
nmenttotheext entoftheli
abil
itydischargedort otheextentofthel i
abi
li
ty
oft
hepersoni
ndefaultf ort
ax,i
nter
estandpenal t
y,whicheveri
sless;

(
vii
)wher
eaper
sononwhom anot
icei
sser
vedundersub-
clause(
i)pr
ovest
o
 thesatisfact
ionoftheoff
icerissui
ngthenot i
cet hatt hemoneydemandedorany
partthereofwasnotduetot hepersonindefaultort hathedidnotholdanymoney
fororonaccountoft hepersonindefaul
t,att
het imet henoticewasservedonhim,
norist hemoneydemandedoranypar tthereof,li
kelytobecomeduet othesaid
personorbehel d fororonaccountofsuchper son,nothingcontai
nedint hi
s
secti
onshal lbedeemedtor equi
retheper
sononwhom t henoti
cehasbeenserved
topayt otheGovernmentanysuchmoneyorpar tthereof;

(d)thepr operoffi
cermay,inaccor dancewithther ul
est obemadei nthisbehal f,
dist
rainanymovabl eorimmovabl epropertybel
ongingt oorunderthecontrolofsuch
person, anddetainthesameunt i
ltheamountpayabl ei spaid;andincase,anypar tof
thesai damountpayabl eoroft hecostoft hedistr
essorkeepi ngoft hepr operty,
remai nsunpaidforaper iodoft
hirtydaysnextafteranysuchdi str
ess,maycauset he
saidpr opert
yt obesol dandwitht heproceedsofsuchsal e,maysat i
sfytheamount
payabl eandt hecost sincl
udi
ngcostofsal eremainingunpai dandshallrendert he
surplusamount ,ifany,t
osuchper son;

(e)t hepr operoffi

cermaypr epareacer t
ifi
catesigned byhim specifying the
amountduef rom suchpersonandsendi ttotheCol l
ect
orofthedist
rictinwhichsuch
personownsanypr oper
tyorr esidesorcar ri
esonhi sbusinessort oanyof f
icer
authorisedbyt heGovernmentandt hesaidCollectororthesaidoff
icer,onrecei
ptof
suchcer t
if
icate,shal
lproceedt or ecoverfrom suchper sont heamountspeci fied
thereunderasi fitwer
eanar r
earofl andrevenue;

(f)Notwit
hstandinganythi
ngcontainedintheCodeofCr iminalPr
ocedur
e,1973,
t
hepr operoffi
cermayf i
leanapplicati
ont otheappropri
ateMagist
rateandsuch
Magist
rate shal
lpr oceed torecoverf rom such person the amountspeci
fi
ed
t
hereunderasifitwereafi
neimposedbyhi m.

(
2)Whe r
ethet er
msofanybondorot herins t
rume nte xecut
e dunde rt
hisAc tor
anyrulesorregulat
ionsmadet her
eunde rprovidet hatanyamountdueunde r
suchinstr
ume ntmayber ecov er
edinthemanne rlaiddowni ns ub-sect
ion(1)
,
theamountmay ,wit
houtprejudicetoanyot hermodeofr ecover
y,berecovered
i
nac cor
dancewi t
htheprovi
s ionsofthats ub-secti
on.

(
3)Whe reanyamountoft ax,i
nter
estorpe nalt
yispay ablebyape r
sont othe
Gov ernme ntunde rany ofthe provi
sions ofthis Actort he rul
es made
t
he reunderandwhi chr emai
nsunpaid,theproperoffi
cerofcentr
altax,dur
ing
t
hec ourseofr ecover
yofs ai
dtaxar r
ears,mayr ecovertheamountfrom the
sai
dpe rsonasi fitwe reanarrearofc ent
ralt
axandc redi
ttheamounts o
recove r
edt ot
heac countoft
heGov er
nme nt.

(
4)Whe r
etheamountr ecoveredundersub-
secti
on(3)isl
essthantheamountdue
totheCe nt
ralGover
nme ntandStateGovernment,
theamounttobec r
edi
tedto
theaccountoftherespect
iveGovernmentsshal
lbeinpropor
ti
ontotheamount
duetoe achsuchGov er
nme nt
.

80.
Onanappl
icat
ionfil
edbyat axabl
eper
son,theCommissi
onermay,forreasonst
o
ber
ecor
dedinwrit
ing,ext
endtheti
meforpaymentoral
lowpaymentofanyamount
 dueunderthi
sAct,otherthantheamountdueaspert heliabi
li
tysel
f-
assessedin
anyretur
n,bysuch person in monthlyinst
alment
snotexceeding twentyfour
,
subj
ecttopaymentofint
erestundersecti
on50andsubjecttosuchcondit
ionsand
l
imit
ati
onsasmaybepr escri
bed:

Provi
dedt
hatwherether
eisdefaul
tinpaymentofanyoneinst
almentonitsduedat
e,
t
hewhol eoutst
andi
ngbalancepayableonsuchdat eshal
lbecomedueandpayabl e
f
orthwit
handshall
,wit
houtanyfurt
hernoti
cebeingser
vedont heperson,beli
abl
efor
r
ecovery.

81.
Wher eaperson, aft
eranyamounthasbecomeduef rom him,creat
esachar geonor
partswi t
hthepr oper
tybelongingtohi m orinhi spossessi onbywayofsal e,
mor t
gage,exchange,oranyot hermode oft ransferwhat soeverofanyofhi s
propert
ies i
nf avourofany ot herper son wit
ht he intenti
on ofdefrauding the
Governmentr evenue,suchchargeortransfershallbevoidasagai nstanycl ai
mi n
respectofanytaxoranyot hersum payablebythesai dperson:

Providedt hat
,suchchargeortransfershal
lnotbevoi difitismadeforadequat e
consi
der at
ion,ingoodfait
handwi thoutnoti
ceoft hependencyofsuchpr oceedings
underthisActorwi t
houtnoti
ceofsucht axorothersum payabl
ebythesai
dper son,or
wit
ht hepreviouspermi
ssi
onoftheproperoffi
cer.

82.
Not wi
thstandi
nganythingtot hecontr
arycontainedi
nanylawforthetimebeingin
force,
saveasot herwiseprovidedint
heInsolvencyandBankr
uptcyCode,2016,any
amountpayabl ebyat axablepersonoranyot herper
sononaccountoftax,i
nter
est
orpenal t
ywhichhei sliabl
etopayt otheGovernmentshal
lbeaf i
rstchar
geont he
propertyofsuchtaxablepersonorsuchperson.

83.
(1)Whereduringthependencyofanyproceedingsundersect i
on62orsect i
on63or
secti
on64orsect i
on67orsect i
on73orsect i
on74,t heCommi ssi
onerisoft he
opini
ont hatf
orthepurposeofprot
ecti
ngt heinterestoftheGovernmentrevenue,it
isnecessarysotodo,hemay,byor derinwr i
tingat t
achprovi
sional
lyanyproperty,
incl
udingbankaccount,bel
ongingtothetaxableper soninsuchmannerasmaybe
prescr
ibed.

(
2)Ever
ys uchpr
ovi
sionalat
tachmentshal
lceaset
ohaveef
fectaf
tert
heexpi
ryof
aperi
odofoneyearfrom t
hedateoftheor
dermadeundersub-
sect
ion(
1).

84.
Whereanynot iceofdemandi nr espectofanyt ax,penalty,int
erestoranyother
amountpayableunderthisAct,
(hereaft
eri
nt hi
ssectionreferredtoas“Government
dues”),i
sserveduponanyt axabl
eper sonoranyot herpersonandanyappealor
revi
sionappl
icati
onisfil
edoranyot herproceedi
ngsi sini
tiatedinrespectofsuch
Governmentdues,then––

(a)wheresuchGovernmentduesar eenhancedi nsuchappeal,revi

sionorother
proceedi
ngs,theCommi ssi
onershallserveupont hetaxabl
epersonoranyot her
personanothernoti
ceofdemandinrespectoftheamountbywhi chsuchGovernment
duesar eenhancedandanyr ecoveryproceedingsi nrel
ati
ontosuchGover nment
duesasar ecoveredbythenot
iceofdemandser veduponhim bef
orethedisposalof
 suchappeal
,revi
sionorotherproceedi
ngsmay,wi
thoutt
heservi
ceofanyf r
esh
noti
ceofdemand,becont i
nuedfrom thest
ageatwhichsuchproceedi
ngsst
ood
i
mmediatel
ybefor
esuchdisposal
;

(b)wher
esuchGover
nmentduesar
ereducedi
nsuchappeal
,revi
sionori
not
her
pr
oceedi
ngs––

(i
)itshallnotbenecessar
yfort
heCommi
ssi
onert
oser
veupont
het
axabl
e
per
sonafreshnoti
ceofdemand;

(
ii)t
heCommi ssi
onershal
lgi
veintimati
onofsuchreduct
iontohi
m andt
othe
appropri
ateaut
hori
tywit
hwhom recoveryproceedi
ngsi
spending;

(i
ii
)anyrecoveryproceedingsinit
iat
edont hebasisofthedemandservedupon
him pri
ortot hedisposalofsuchappeal ,r
evisi
onorot herproceedi
ngsmaybe
conti
nuedinr el
ati
ontot heamountsor educedf r
om thestageatwhi chsuch
proceedi
ngsst oodimmediatelybeforesuchdisposal
.

CHAPTER XVI
LI
ABI
LITYTOPAYINCERTAINCASES

85.
(1)Wher eataxableper son,li
abletopayt axunderthisAct,
transfer
shisbusi nessin
whol eorinpar t
,bysal e,gift
,lease,l
eaveandl icense,hi
reori nanyot hermanner
what soever
,the taxabl e person and the person to whom t he business is so
transfer
redshal l
,jointl
yandsever al
ly,bel i
ablewhol l
yort ot heextentofsuch
transfer
,topayt hetax,int
erestoranypenal tyduef r
om thetaxablepersonupt othe
ti
meofsucht ransfer,whethersucht ax,i
nter
estorpenal t
yhasbeendet ermined
beforesucht r
ansfer,buthasr emainedunpai dorisdeterminedthereaf
ter.

(
2)Whe r
et het r
ans fereeofabus i
nessreferr
e dtoins ub-sect
ion( 1)c arr
ieson
suchbus inesse it
herinhisownnameori ns omeothername , hes hal
l beli
able
topayt axont hes uppl
yofgoodsors ervicesorbothe ffectedbyhi m with
eff
ectf r
om t hedat eofs uchtr
ansferands hal
l
,ifhei sar e gi
steredpe r
s on
undert his Ac t,apply wit
hinthe prescr
ibedt i
me f orame ndme ntofhi s
cert
if
icateofr egist
rati
on.

86.
Whereanagentsuppl
iesorrecei
vesanyt axabl
egoodsonbehalfofhi
spr
inci
pal
,
suchagentandhisprinci
palshal
l,j
oint
lyandseveral
ly,bel
iabl
etopaythetax
payabl
eonsuchgoodsunderthi
sAct.

87.
(1)Whent woormor ecompani esareamalgamat edormer gedinpur suanceofan
orderofcourtorofTr i
bunalorot her
wiseandt heor deristotakeeffectf rom adat e
earl
iertot hedat eoft heor derandanyt woormor eofsuchcompani eshave
suppli
edorr eceivedanygoodsorser vicesorbotht oorf r
om eachot herdur i
ngt he
peri
odcommenci ngont hedat efr
om whichtheor dertakeseffectti
llthedat eoft he
order,t
hensucht ransacti
onsofsuppl yandreceiptshallbeincludedi nt het urnover
ofsupplyorr eceiptoft herespecti
vecompaniesandt heyshal lbeliablet opayt ax
accordi
ngly.
(
2)Notwit
hstandi
nganyt
hingc ontai
nedint hes ai
dor der
, f
orthepurposesofthis
Act,t
hesai dt
woormorec ompaniess hallbetreatedasdisti
nctcompaniesfor
theperi
odupt othedateoft hesai
dor derandt heregist
rat
ioncert
if
icat
esof
thesaidc ompani
esshallbec ancel
ledwi theffectfrom thedat
eoft hes aid
order
.

88.
(1)Whenanycompanyi sbeingwoundupwhet herundertheor der
sofacour tor
Tri
bunalorother
wise,everyperson appoi
nted as r
eceiverofanyasset s ofa
company(her
eaft
erinthi
ssecti
onr ef
erredt
oast he“l
iqui
dator
”),shal
l,wi
thi
nt hir
ty
daysaft
erhi
sappoint
ment,gi
veinti
mationofhisappoi
ntmenttotheCommi ssioner.

(
2)The Commis si
oners hall
,af t
ermak i
ng suchinquiry orc al
li
ng fors uc h
i
nformati
onashemayde emf i
t,noti
fythel
iqui
datorwit
hinthreemonthsf rom
thedateonwhi chher ecei
vesinti
mationoftheappointmentoftheli
quidat or
,
theamountwhi chintheopi ni
onoft heCommi ssi
onerwouldbes uf
fici
entt o
provi
deforanyt ax,i
nter
estorpe nalt
ywhichisthen,orislikel
ythereaft
ert o
become,payabl
ebyt hecompany .

(
3)Whe n anypr i
v atec ompanyi swound up and anyt ax,inter
estorpe nalt
y
deter
mi nedunde rt hi
sAc tont hec ompanyf oranype r
iod, whetherbeforeorin
thecour seoforaf terit
sliquidati
on,c annotber ecovered,thene ver
ype rson
whowasadi rectorofs uchc ompanyatanyt i
medur ingt hepe ri
odf orwhich
thetaxwasdues hall
,joi
ntlyands everal
l
y ,beliabl
ef orthepay me ntofs uch
tax,interest or pe nalty,unl ess he pr ov est o the s atisf
acti
on of t he
Commi s si
onert hats uch non-recoveryc annotbe at tr
ibutedt o any gross
neglect
,mi sf
eas anc eorbre achofdut yonhi spartinre l
ationtotheaf fai
rsof
thecompany .

89.
(1)Not wit
hstandi
nganyt hi
ngcont ainedi ntheCompani esAct ,2013,whereanytax,
int
er estorpenalt
yduef r
om apr i
vatecompanyi nr espectofanysuppl yofgoodsor
servicesorbot hforanyper i
odcannotber ecovered,then,everypersonwhowasa
directorofthepr i
vatecompanydur ingsuchper iodshal l,j
ointl
yandseverall
y,be
li
ablef orthepaymentofsucht ax,i
nterestorpenaltyunlesshepr ovesthatt
henon-
recover ycannotbeattri
butedt oanygr ossneglect ,misf
easanceorbr eachofduty
onhi spartinrel
ationtotheaffair
soft hecompany.
(
2)Whe r
eapr i
vatec ompanyi sc onvert
edintoapubl i
cc ompanyandt het ax,
i
nter estorpenalt
yinrespec tofanys upplyofgoodsors ervi
cesorbothforany
period during whichs uc hc ompany was a pr ivatec ompany cannotbe
recove r
edbe foresuchc onv er
s i
on,then,nothi
ngc ontai
nedins ub-
sect
ion( 1)
shallappl ytoanype r
sonwhowasadi r
ec t
orofs uchpr i
vat
ec ompanyi n
rel
at i
ont oanyt ax,i
nter
e storpe nal
tyinrespectofs uchsupplyofgoodsor
servicesorbot hofsuchprivatec ompany:

Pr
ovi
dedt
hatnot
hingcont
ainedi
nthi
ssub-
sect
ionshal
lappl
ytoanyper
sonalpenal
ty
i
mposedonsuchdi
rect
or.

90.
Notwit
hst
andinganycont
racttot
hecontr
aryandanyotherl
awf orthetimebei
ngi n
for
ce,whereanyfi
rmisli
abletopayanytax,i
nter
estorpenal
tyundert hi
sAct,t
he
fi
rm andeachoft hepar
tnersofthef
ir
m shall
,joi
ntl
yandsever al
ly,beli
abl
ef or
suchpayment:

Provi
dedthatwhereanypar tnerret
ir
esfrom thefi
rm, heorthefi
rm,shal
lint
imatethe
dat
eofr et
ir
ementoft hesaidpar t
nertotheCommi ssionerbyanoticei
nthatbehalfin
wri
ti
ngandsuchpar tnershallbeli
abletopaytax,i
nterestorpenal
tydueuptothedateof
hi
sretir
ementwhetherdeterminedornot,onthatdate:

Provi
dedfur
therthatifnosuchi nt
imati
onisgi
venwithinonemonthfrom t
hedateof
ret
ir
ement,t
heli
abil
ityofsuchpartnerundert
hefi
rstpr
ovisoshal
lcont
inueunti
lthedat
e
onwhichsuchinti
mat i
onisrecei
vedbyt heCommissi
oner.

91.
Wher ethebusinessi nrespectofwhi chanyt ax,int
erestorpenal
tyispayabl eunder
this Actis carri
ed on byanyguar dian,trustee oragentofa mi nororot her
incapacit
ated per son on behalfofand f ort hebenef itofsuch minororot her
incapacit
ated per son,t he tax,i nterestorpenal ty shallbe levi
ed upon and
recoverablefr
om suchguar dian,trust eeoragenti nl i
kemannerandt othesame
extentasi twoul dbedet erminedandr ecoverablefrom anysuchmi nororot her
incapacit
atedper son, asifhewer eamaj ororcapaci tatedper
sonandasi fhewer e
conduct i
ngthebusi nesshimself,andal ltheprovisi
onsoft hi
sActorther ulesmade
thereundershallappl yaccordi
ngly.

92.
Wher etheest ateoranypor t
ionoft heest ateofat axablepersonowni ngabusi ness
inrespectofwhi chanyt ax,i
nt erestorpenal tyispayabl eunderthisActi sundert he
controloftheCour tofWar ds,t heAdmi ni
stratorGener al
,theOf f
ici
alTr usteeorany
recei
verormanager( i
ncludinganyper son,what everbehi sdesignation,whoi nfact
managest hebusi ness)appoi ntedbyorunderanyor derofacour t,thetax,int
erest
orpenal tyshal lbel evieduponandber ecover abl
ef rom suchCour tofWar ds,
Admi ni
stratorGener al,Offi
cialTr ustee,receiverormanageri nli
kemannerandt o
thesameext entasi twoul dbedet erminedandber ecoverabl
ef rom t hetaxable
personasi fhewer econduct ingt hebusi nesshi mself,andallthepr ovisionsofthis
Actort herulesmadet hereundershal lappl
yaccor di
ngly.

93.
(1)Saveasother
wiseprovi
dedintheInsol
vencyandBankruptcyCode,
2016,
wher
e
aperson,l
iabl
etopaytax,i
nter
estorpenal
tyundert
hisAct
,dies,t
hen––
 (
a)ifabusi
nesscarri
edonbyt hepersonisconti
nuedaft
erhisdeathbyhi sl
egal
r
epresent
ati
veoranyotherperson,suchlegalrepr
esent
ati
veorotherperson,
shallbe
l
iabl
etopaytax,
int
erestorpenalt
yduef r
om suchpersonundert
hisAct;and

(
b)ifthebusinesscarri
edonbythepersonisdiscont
inued,
whetherbef
oreoraf
ter
hi
sdeat h,hislegalrepresent
ati
veshallbeliabl
et opay,outoft heestat
eofthe
deceased,totheextenttowhichtheestat
eiscapableofmeetingt
hecharge,thet
ax,
i
nterestorpenal
tyduef r
om suchpersonunderthi
sAct,

whet
hersuchtax,i
nter
estorpenal
tyhasbeendet
ermi
nedbef
orehi
sdeat
hbuthas
r
emainedunpai
dori
sdetermi
nedaft
erhi
sdeat
h.

(
2)Saveasot herwisepr ovi
de di nt heI ns olvencyandBank ruptcyCode ,2016,
whe r
eat axabl
epe rson,l
iabletopayt ax ,int
erestorpe nal
tyunde rt
hisAc t,
isa
HinduUndi vi
dedFami lyoranas s oc iationofpe rsonsandt hepr opertyoft he
HinduUndi vi
dedFami lyort heas s oc iationofpe rsonsispartit
ionedamongs t
thevar i
ousme mbe r
sorgr oupsofme mbe rs,t
hen,e achme mbe rorgr oupof
me mbe rss hal
l,joi
ntlyands ever
ally, bel iabl
et opayt hetax,i
nterestorpenalty
duef rom t het axablepe rsonunde rt hisAc tuptot het i
meoft hepar ti
ti
on
whe t
he rs uchtax ,penal
tyori nter
e s thasbe endeterminedbe f
orepar t
it
ionbut
hasremai ne dunpai dorisde ter
mi ne daf tert
hepar t
iti
on.

(
3)Saveasot herwisepr ovi
de dint heInsolv enc yandBank ruptcyCode,2016,
whe r
eat axableperson, l
iabletopaytax,intere storpenalt
yunde rthi
sAc t
,isa
fi
rm,andt hef ir
mi sdi ss ol
ved,then,everype r
sonwhowasapar t
ners hal
l,
j
ointl
yands everal
ly,beliabletopayt het ax,i nter
estorpe nal
tyduef r
om the
fi
rm undert hi
sAc tupt ot heti
meofdi ssolutionwhe thersuc htax,i
nter
estor
penalt
yhasbe ende terminedbe f
orethedi ss oluti
on,buthasr emainedunpaid
orisdeterminedafterdissoluti
on.

(
4)Saveasother
wiseprovidedint
heInsol
vencyandBank rupt
c yCode,2016,
whereat
axabl
epersonl
iablet
opayt
ax,
int
erestorpenal
tyunderthi
sAct,
––

(
a)istheguar
dianofawar
donwhosebehal
fthebusi
nessi
scar
ri
edonbyt
he
guardi
an;or

(
b)i
sat
rust
eewhocar
ri
esont
hebusi
nessunderat
rustf
orabenef
ici
ary,

then,i
ftheguardianshiportr
ustistermi
nat ed,thewardort hebenefici
aryshallbeli
able
topayt hetax,interestorpenalt
yduef rom thet axablepersonupt othetimeoft he
termi
nationoftheguar di
anshiportrust
,whet hersucht ax,int
erestorpenalt
yhasbeen
deter
minedbeforet heter
minati
onofguar dianshiportrustbuthasremainedunpai doris
deter
minedthereafter.

94.
(1)Whereat axabl
epersonisaf i
rm oranassoci
ati
onofpersonsoraHi ndu
Undi
videdFamil
yandsuchfi
rm,associ
ati
onorf
amil
yhasdi
scont
inuedbusi
ness––

(
a)thet
ax,i
nter
estorpenal
typayabl
eundert
hisActbysuchfi
rm,associ
ati
onor
f
amil
yuptothedateofsuch disconti
nuancemaybedet er
mined asifno such
 di
scont
inuancehadt
akenpl
ace;and

(
b)everyper sonwho,att het
imeofsuchdi scont i
nuance,wasapar t
nerofsuch
fir
m,ora memberofsuch associ at
ion orf ami l
y,shall,notwi
thstandi
ng such
disconti
nuance,j oi
ntl
yandsever al
ly,beliablefort hepaymentoft axandi nterest
determinedandpenal t
yimposedandpayabl ebysuchf i
rm,associ
ationorf ami l
y,
whet hersucht axandi nt
eresthasbeendet er
mi nedorpenal t
yi mposedpr i
ort oor
aftersuchdi sconti
nuanceandsubjectasaf oresaid,theprovi
sionsoft hisActshal l
,
sof arasmaybe,appl yasifever
ysuchper sonorpar tnerormemberwer ehi
msel fa
taxableperson.

(
2)Whe reac hangehasoc cur
redintheconstituti
onofaf ir
m oranas s ociat
ionof
persons,thepar t
nersoft hefir
m orme mbe rsofas soci
ati
on,asi texist
ed
beforeandasi te xi
stsaft
erthereconsti
tution,shall
,withoutprej
udi cetothe
provi
s i
onsofs ecti
on90,joint
lyands everall
y,beliabl
et opayt ax,inter
estor
penalty due from s uchf i
rm or assoc iati
on for any pe ri
od be forei t
s
reconsti
tuti
on.

(
3)Thepr ovi
sionsofs ub-
sect
ion(1)s hal
l,sofarasmaybe ,applywhe r
et he
taxabl
epers on,bei
ngaf i
rm orassoci
ati
onofpersonsisdissol
vedorwhe rethe
taxabl
epe rson,beingaHi nduUndi vi
dedFami l
y,hase f
fectedparti
ti
onwi th
respectt
othebus i
nesscarr
iedonbyi tandaccordi
nglyref
erencesinthatsub-
secti
ontodi sconti
nuanceshallbecons t
ruedasrefer
encetodi ssol
uti
onort o
parti
ti
on.

Expl
anat
ion.
––Fort
hepur
posesoft
hisChapt
er,
––

(
i)a“Li
mit
edLiabi
li
tyPart
nershi
p”for
medandregi
ster
edundertheprovi
sionsof
t
heLimi
tedLi
abi
li
tyPar
tner
shipAct,
2008shal
lal
sobeconsider
edasafi
rm;

(
ii
)“cour
t”meanst
heDi
str
ictCour
t,Hi
ghCour
torSupr
emeCour
t.

CHAPTERXVI
I
ADVANCERULI
NG

95.
Int
hisChapt
er,
unl
esst
hecont
extot
her
wiser
equi
res,
––

(a)“advancerul
ing”meansadeci sionprovi
dedbyt heAuthori
tyortheAppell
ate
Author i
tytoanapplicantonmat t
ersoronquest i
onsspecifi
edinsub-secti
on(2)of
section97orsub- secti
on(1)ofsection100,inr el
ati
ont othesupplyofgoodsor
servicesorbothbei
ngundertakenorproposedtobeundertakenbytheappli
cant
;

(
b) "
Appell
ate Author
it
y" means t
he Appel
lat
e
Aut
hor
it
yforAdvanceRul
ingconsti
tut
edundersect
ion99;

(
c)“appl
icant
”meansanyper
sonr
egi
ster
edordesi
rousofobt
aini
ngr
egi
str
ati
on
undert
hisAct;
 (
d)“appl
icat
ion”meansanappl
icat
ionmadet
otheAut
hor
it
yundersub-
sect
ion(
1)
ofsect
ion97;

(
e)“
Aut
hor
it
y”meanst
heAut
hor
it
yforAdvanceRul
ing,const
it
utedundersect
ion
96.

(
96.1)TheGover
nmentshal
l,bynot
if
icat
ion,const
it
uteanAut
hor
it
ytobeknownas
t
heKer
alaAut
hor
it
yforAdvanceRul
ing:

ProvidedthattheGover nmentmay,ont herecommendat ionoftheCounci

l,not
if
y
anyAut hor
ityl
ocatedinanotherStat
et oactastheAut hori
tyfort
heSt
ate.
(
2)TheAut hori
tyshallconsi
stof-
(
i)onememberf rom amongsttheoffi
cersofcentraltax;and
(
ii
)onememberf r
om amongstt heoff
icersofStatetax,

t
obeappoi
ntedbyt
heCent
ralGover
nmentandt
heSt
ateGover
nmentr
espect
ivel
y.

(3)Thequali
fi
cat
ions,t
hemethodofappoint
mentofthemembersandt
het
ermsand
condit
ionsoft
hei
rservi
cesshal
lbesuchasmaybeprescr
ibed.

97.
(1)Anapplicantdesi
rousofobtai
ninganadvancerul
ingunderthisChapt
ermay
makeanappl i
cati
oninsuchfor
m andmannerandaccompaniedbysuchfeeasmay
beprescr
ibed,st
ati
ngthequest
iononwhicht
headvancerul
ingissought
.

(
2)Theque st
iononwhi
cht
headvancer
uli
ngi
ssoughtundert
hisAct
,shal
lbe
i
nrespectof
,-

(
a)cl
assi
fi
cat
ionofanygoodsorser
vicesorbot
h;

(
b)appl
icabi
li
tyofanot
if
icat
ioni
ssuedundert
hepr
ovi
sionsoft
hisAct
;

(
c)det
ermi
nat
ionoft
imeandval
ueofsuppl
yofgoodsorser
vicesorbot
h;

(
d)admi
ssi
bil
it
yofi
nputt
axcr
edi
toft
axpai
dordeemedt
ohavebeenpai
d;

(
e)det
ermi
nat
ionoft
hel
iabi
li
tyt
opayt
axonanygoodsorser
vicesorbot
h;

(
f)whet
herappl
icanti
srequi
redt
ober
egi
ster
ed;

(g)whetheranypart
icul
art
hingdonebyt
heappl
icantwi
thr
especttoanygoodsor
servicesorbothamountstoorresul
tsi
nasuppl
yofgoodsorser
vicesorbot
h,wit
hin
themeani ngofthatt
erm.

98.
(1)Onr
ecei
ptofanappl
icat
ion,t
heAut
hor
it
yshal
lcauseacopyt
her
eoft
obe
 f
orwardedtotheconcer
nedof
fi
cerand,i
fnecessar
y,cal
luponhi
mtof
urni
sht
he
r
elevantr
ecor
ds:

Provi
dedthatwhereanyrecor
dshavebeencal
ledforbytheAuthor
it
yinanycase,
suchrecor
dsshall
,assoonaspossi
ble,
ber
etur
nedtot
hesaidconcer
nedoff
icer
.

(
2)TheAuthor
it
ymay ,aft
ere xamini
ngtheappl i
cati
onandt herecordsc al
ledfor
and aft
erheari
ng the appli
cantorhi s author
isedr epresent
ative and the
concer
nedoffi
cerorhisaut hori
sedrepresentat
ive,byor der
,eit
he radmi tor
rej
ectt
heappli
cat
ion:

Provi
dedt hattheAuthorit
yshallnotadmi ttheappli
cati
onwher ethequesti
onr ai
sedin
theapplicati
oni salr
eadypendi ngordeci dedi nanypr oceedi
ngsi nthecaseofan
appli
cantunderanyoft heprovi
sionsoft hi
sAct:
Providedfurt
herthatnoapplicat
ionshallberej
ectedunderthissub-
secti
onunless
anoppor tuni
tyofheari
nghasbeengi ventotheappl
icant:

Provi
dedalsot
hatwheret
heappl
icat
ioni
srej
ect
ed,
ther
easonsf
orsuchr
eject
ion
shallbespeci
fi
edi
ntheorder
.

(
3)Acopyofever
yordermadeundersub-
sect
ion(
2)shal
lbesentt
otheappl
i
c ant
andt
otheconcer
nedoff
icer
.

(
4)Whe reanapplicati
onisadmi t
tedunders ub-
se ct
ion( 2),theAut hor
it
ys hal
l,
aft
e rexamini
ng suc hfurthermateri
alas maybe pl ac ed bef
oreitbyt he
appli
cantorobtainedbyt heAut hor
it
yandaf t
e rprovidinganoppor tuni
tyof
bei
nghe ardtotheapplicantorhisauthori
sedre pr
e sentati
veaswe l
lastothe
concerned of
fi
cerorhi saut hori
sedr epr
esentati
ve,pr onounc eitsadvance
rul
ingontheques t
ionspecifi
edintheappli
cati
on.

(
5)Whe retheme mbersoft heAuthor
it
ydi f
feron anyque st
ion on whi
cht he
advancerul
ingi ssought
,theyshal
lstatethepointorpointsonwhi chthey
di
ff
e randmak earefer
encetotheAppel
lateAut
horit
yforheari
ngandde ci
sion
ons uchquest
ion.

(
6)TheAuthor
it
yshal
lpronounceit
sadvancer
uli
ngi
nwr
it
ingwi
thi
nni
net
ydays
fr
om t
hedateofr
ecei
ptofappli
cati
on.

(
7)Ac opyoftheadvanceruli
ngpronouncedbyt
heAuthorit
ydulys i
gnedbythe
me mbersandcert
if
iedins uchmannerasmaybepr escr
ibedshal
lbesentto
theappli
cant
,thec oncer
ne dof
fi
cerandthejur
isdi
cti
onaloff
iceraf
tersuch
pronouncement
.

(
99.1)TheGover
nmentshal
l,bynot
if
icat
ion,const
it
uteanAut
hor
it
ytobeknownas
Keral
aAppell
ateAut
hor
it
yf orAdvanceRuli
ngf orGoodsandServi
cesTaxfor
heari
ngappeal
sagai
nsttheadvancerul
ingpronouncedbytheAdvanceRul
ing
Authori
ty:
 Provi
dedthattheGover nmentmay,ont herecommendat
ionsoftheCounci
l,not
if
y
anyAppellat
eAut hori
tylocatedi nanot
herStateorUni
ont er
ri
tor
ytoactast he
Appell
ateAuthor
it
yf ort
heSt ate.
(
2)TheAppel
lat
eAut
hor
it
yshal
lconsi
stof
-

(
i)t
heChi
efCommi
ssi
onerofcent
ralt
axasdesi
gnat
edbyt
heBoar
d;and

(
ii
)theCommi
ssi
onerofSt
atet
axhavi
ngj
uri
sdi
cti
onovert
heappl
icant
.

100.(1)Theconcernedoffi
cer,thej
uri
sdi
cti
onaloff
iceroranappli
cantaggr
ievedby
anyadvancerul
ingpronouncedundersub-
sect
ion(4)ofsect
ion98,mayappealto
theAppel
lat
eAuthor
it
y.

(
2)Everyappealunderthi
ss ect
ions hal
lbefi
ledwit
hinape r
iodofthi
rt
ydaysfrom
thedateonwhi chtherul
ings oughttobeappeal
edagainstiscommunicat
edto
theconcer
nedof fi
cer,
thejuri
s di
cti
onalof
fi
cerandtheappli
cant:

Providedthatt
heAppel l
ateAut
hori
tymay,i fi
tissati
sfi
edt hattheappel
lantwas
prevent
edbyasuf f
ici
entcausefr
om present
ingtheappealwithinthesaidperi
odof
thi
rtydays,al
lowi
ttobepresent
edwit
hinafurt
herper
iodnotexceedingt
hir
tydays.

(
3)Everyappealundert
hissect
ions hal
lbei
ns uchform,accompani
edbysuch
feeandver
ifi
edinsuchmanne rasmaybeprescr
ibed.

101.(1)TheAppellateAut
hori
t ymay,af
tergi
vingthepart
iest
otheappealorr
eference
an opport
uni
tyofbei ng heard,passsuch orderasi tthi
nksfi
t,confi
rming or
modifyi
ngtheruli
ngappealedagai
nstorref
erredto.

(
2)Theor derref
err
edt oins ub-sect
ion( 1)shal
lbepassedwit
hinape r
iodof
ni
ne t
yday sfrom thedat eoff il
ing oftheappealundersect
ion 100 ora
ref
erenceundersub-sect
ion(5)ofs ect
ion98.

(
3)Whe r
et heme mbe r
soft heAppe l
lat
eAuthor
it
ydiff
e ronanypoi ntorpoi
nts
ref
err
e dtoi
nappe alorr
eference,i
tshal
lbedeemedthatnoadvancerul
ingcan
beissuedinrespectoft
heque st
ionundert
heappealorref
erence.

(
4)Ac opyoft headv ancerul
ing pronounced byt heAppel
lat
eAut hor
it
ydul y
si
gnedbyt heMe mbe rsandc er
ti
fiedins uchmanne rasmaybepr escr
ibed
shal
lbes enttotheappli
cant,t
hec oncernedof f
icer
,thej
uri
sdi
cti
onaloffi
cer
andtotheAuthor
ityaft
ersuchpronounceme nt.

102.TheAut horit
yort heAppell
ateAuthori
tymayamendanyor derpassedbyi tunder
secti
on98orsect i
on101,soast or ect
ifyanyerrorapparentont hefaceoft he
recor
d,ifsucherrorisnoti
cedbytheAut hori
tyort
heAppellateAuthori
tyonitsown
accord,
orisbr oughttoit
snoticebytheconcernedoffi
cer,t
hejurisdi
cti
onaloff
icer
,
ortheapplicantortheappell
antwit
hinaper iodofsixmonthsf r
om thedateoft he
 or
der
:

Pr
ovi
dedt hatnorect
if
icat
ionwhichhastheeffectofenhanci
ngt hetaxli
abil
it
yor
r
educi
ngtheamountofadmi ssi
blei
nputt
axcredi
tshallbemadeunlesstheappl
icantor
t
heappel
lanthasbeengi
venanoppor t
uni
tyofbei
nghear d.

103.(1)Theadvancer ul
ingpr onouncedbytheAut
hor
it
yort
heAppel
lat
eAut
hor
it
y
undert
hisChaptershallbebindi
ngonly-

(
a)ontheappl
icantwhohadsoughtitinrespectofanymat
terr
efer
redt
oinsub-
sect
ion(
2)ofsection97foradvancer
uli
ng;

(
b)ont
heconcer
nedof
fi
cerort
hej
uri
sdi
cti
onalof
fi
ceri
nrespectoft
heappl
icant
.

(
2)Theadv ancerul
i
ngr ef
erredtoi
ns ub-
sect
ion(1)shallbebindi
ngunlesst
he
l
aw,f acts orci
rcumstancessupport
ing t
he ori
ginaladvancerul
i
ng have
changed.

104.( 1)Wher et heAut hori

tyort heAppel l
ateAuthor i
ty findst hatadvancer ul
ing
pronouncedbyi tundersub- secti
on( 4)ofsection98orundersub- sect
ion( 1)of
secti
on 101 has been obt ai
ned byt he appl
icantort he appel l
antbyf raud or
suppressionofmat erialf
actsormi sr
epresent
ati
onoff acts,itmay,byorder,
declare
suchr ul
ingt obevoi dab- i
nit
ioandthereuponallt heprovisionsofthisActort he
rul
esmadet hereundershal lapplytot heapplicantort heappel l
antasi fsuch
advancer ul
inghadneverbeenmade:

Provi
dedt
hatnoordershallbepassedunderthi
ssub-secti
onunl
essanoppor
tuni
tyof
bei
ngheardhasbeengiventotheappli
cantortheappel
lant.

Expl
anat
ion.
––Theper
iodbegi
nni
ngwi
tht
hedat
eofsuchadvancer
uli
ngandendi
ng
withthedat
eoforderundert hi
ssub-secti
onshallbeexcludedwhi l
ecomputi
ngt he
peri
odspeci
fi
edi
nsub-sect
ions(2)and(10)ofsect
ion73orsub-sect
ions(
2)and(10)of
secti
on74.

(
2)Acopyoftheor
dermadeundersub-
secti
on(1)shal
lbesentt
otheappl
i
c ant
,
t
heconcer
nedoff
icerandt
hej
uri
sdi
cti
onalof
fi
cer
.

105.(1)TheAut hori
tyortheAppell
ateAut
horit
yshall
,fort
hepurposeofexer
cisi
ngits
powersregardi
ng–
(
a)discover
yandi nspect
ion;
(
b)enforci
ngtheat t
endanceofanypersonandexamini
nghim onoat
h;
(
c)issui
ngcommi ssi
onsandcompelli
ngproduct
ionofbooksofaccountandother
records,

haveal
lthepower
sofaci
vilcour
tundert
heCodeofCi
vilPr
ocedur
e,1908.
(
2)TheAut hori
tyortheAppe l
lateAut
hori
tyshallbedeeme dtobeac i
vilcour
tfor
thepurpos esofs ect
ion195,butnotforthepurposesofChapt e rXXVIoft he
CodeofCr iminalProcedur
e,1973,
ande ver
yproceedi
ngbe foretheAut hori
tyor
theAppe l
lateAuthori
tyshallbedeemedtobeaj udi
cialpr
oc eedingswi t
hinthe
me ani
ngofs ecti
ons193and228,andf orthepurposeofs ec t
ion196oft he
I
ndianPe nal Code.

106.TheAut hor
it
yortheAppel
lat
eAuthor
it
yshall,subj
ectt
othepr
ovi
sionsoft
his
Chapt
er,
havepowertor
egul
ateit
sownprocedur
e.

CHAPTER–XVI
II
APPEALSANDREVISI
ON

107.(1)Anyper sonaggrievedbyanydeci
sionororderpassedundert hi
sActort he
Centr
alGoodsandSer vi
cesTaxActbyanadj udicati
ngauthori
tymayappealt o
suchAppell
ateAuthori
tyasmaybeprescri
bedwithinthreemonthsfr
om thedat
eon
whichthesai
ddecisionororderi
scommunicat
edt osuchperson.

(
2)The Commi ssionermay ,on his own mot ion,orupon r equestf rom t he
Commi ssi
onerofc e ntralt
ax,cal
lforande xami nether ecor
dofanypr oc eeding
i
nwhi chanadj udi
c atingauthori
tyhaspas sedanyde ci
sionororderunde rthis
Actort heCe ntralGoodsandSe r
vicesTaxAc t,forthepurposeofs ati
sfying
hims el
fast othele galityorpr
oprietyofthes aidde ci
sionororderandmay ,by
order,dir
ectanyof fi
ce rsubor
dinatetohi mtoappl ytotheAppe l
lat
eAut hor it
y
withinsixmont hsfrom t hedateofc ommuni cationofthes ai
dde ci
sionoror der
forthede t
erminationofs uchpointsari
singoutoft hesaiddecisi
onoror deras
maybes pecif
iedbyt heCommi ssi
onerinhisor der.

(
3)Whe r
e ,i
npursuanceofanor derunde rsub-
secti
on( 2),t
heauthori
sedof f
icer
make sanappli
cati
ontotheAppel lat
eAuthori
ty,suchappli
cat
ionshallbedealt
wit
h byt heAppell
ate Aut
horit
y as i fi
twe r
e an appe almade againstthe
deci
sionoror deroftheadj udi
c ati
ngauthori
tyands uchauthori
sedof f
icer
wereanappell
antandt heprovi
sionsofthisActre l
ati
ngtoappealsshallappl
y
tosuchappli
cati
on.

(
4)TheAppe ll
ateAuthor
it
ymay ,i
fheissati
sfi
edthattheappel
lantwasprevented
bys uff
ici
entcausefrom pr
esenti
ngtheappealwithi
nt heafor
esai
dpe r
iodof
thr
eemont hsorsixmonths,asthecasemaybe ,al
l
owi ttobepresent
edwithin
afurtherper
iodofonemonth.

(
5)Ever
yappealundert
hissect
ionshal
lbei
nsuchf
orm andshal
lbever
if
iedi
n
suchmannerasmaybeprescri
bed.

(
6)Noappeal
s hal
lbef
il
edundersub-
sect
ion(
1),
unl
esst
heappel
lanthaspai
d–

(
a)i
nful
l,
suchpartoftheamountoftax,
int
erest
,fi
ne,
feeandpenal
tyar
isi
ngf
rom
t
hei
mpugnedorder
,asisadmit
tedbyhim;and
 (b)asum equaltot
enpercent
.ofther
emainingamountoft
axi
ndi
sput
ear
isi
ng
f
rom t
hesai
dor der
,inr
elat
iont
owhicht
heappealhasbeenf
il
ed.

(
7)Wher
et heappel
lanthaspaidt
heamountundersub-
sect
ion(6)
,ther
ecover
y
pr
oceedingsf
ort
hebalanceamountshal
lbedeemedt
obes t
ayed.

(
8)TheAppel
lat
eAut
hor
it
yshal
lgi
veanoppor
tuni
tyt
otheappel
lantofbei
ng
hear
d.

(
9)TheAppe l
l
ateAuthorit
ymay ,i
fs uff
ici
entc auseiss hownatanys t
ageof
hear
ingofanappeal,grantt
imet othepar t
iesoranyoft hem andadj
ournt
he
hear
ingoftheappealf
orreasonstober ecordedi
nwrit
ing:

Provi
dedthatnosuchadjour
nmentshal
lbegr
ant
edmor
ethant
hreet
imest
oapar
ty
dur
ingheari
ngoftheappeal
.

(
10) TheAppe l
l
ateAut hor
it
ymay ,att
het i
meofhe ar
ingofanappe al
,all
ow an
appel
lanttoaddanygr oundofappealnotspeci
fi
edi
nt hegroundsofappeal
,i
f
i
tissatisf
iedthatt
heomi ssi
onofthatgroundfr
om thegroundsofappealwas
notwil
fulorunreasonabl
e.

(
11) TheAppe llateAuthori
tyshal
l,aftermaki
ngs uchf ur
therinqui
ryasmaybe
necessar
y ,pas ssuchorde r
,asitthi
nk sj
ustandpr oper
,confir
ming,modi
fyi
ng
orannull
ingt hede ci
sionororderappe al
edagainstbutshallnotr
efert
hecase
backtotheadj udi
cat
ingauthori
tythatpassedthesaiddeci
s i
onororder
:

Provi
dedthatanorderenhancinganyfeeorpenal
tyorf
ineinlieuofconfi
scati
onor
conf
iscat
inggoodsofgreat
ervalueorreduci
ngtheamountofrefundorinputt
axcredi
t
shal
lnotbepassedunl esstheappell
anthasbeengivenar easonabl
eopportuni
tyof
showingcauseagai
nstt
heproposedorder:

Pr
ovidedfur
thert
hatwheretheAppel l
ateAuthori
tyi
softheopi ni
onthatanytaxhas
notbeenpaidorshor t
-pai
dorerroneousl
yr ef
unded,orwhereinputtaxcredi
thasbeen
wronglyavai
ledoruti
li
sed,noorderrequir
ingtheappell
anttopaysucht axorinputt
ax
credi
tshallbepassedunlesstheappel l
antisgivennoti
cetoshow causeagai nstt
he
proposedorderandtheorderi
spassedwi t
hintheti
mel i
mitspecifi
edundersecti
on73
orsecti
on74.

(
12) TheorderoftheAppellat
eAuthor
it
ydi sposi
ngoft heappealshal
lbein
wri
ti
ngands hal
lst
atet
hepoi nt
sfordeter
mi nat
ion,t
hedeci
sionther
eonand
t
hereasonsf
orsuchdeci
sion.

(
13) TheAppell
ateAut
hor
it
yshall
,wherei
tispossi
blet
odoso,hearanddeci
de
ever
yappealwi
thi
naperi
odofoneyearf
rom t
hedateonwhi
chitisf
il
ed:

Pr
ovi
dedthatwherethei
ssuanceofor
derisst
ayedbyanorderofacour
torTr
ibunal
,
t
heperi
odofsuchstayshal
lbeexcl
udedincomputi
ngt
heperi
odofoneyear.
(
14) Ondi sposaloft
heappeal
,theAppell
ateAuthor
it
yshal
lcommunicat
et he
orderpassed by i
ttothe appel
lant
,respondentand t
othe adj
udicat
ing
author
it
y.

(
15) Acopyoft heorderpassedbytheAppe l
lat
eAuthor
it
yshallal
sobes entto
t
heCommi ssi
onerortheauthor
it
yde si
gnatedbyhimi nt
hisbe hal
fandt he
j
uri
sdi
c t
ionalCommissi
onerofcentr
alt
ax oranaut
hori
tydesi
gnatedbyhimi n
t
hisbehalf.

(
16) Ev er
yorderpassedundert
hiss ect
ionshal
l,subj
ectt
otheprovi
sionsof
sect
ion108ors ect
ion113orsect
ion117ors ect
ion118befi
nalandbindi
ng
onthepart
ies.

108.(1)Subj ecttot heprovisionsofsect i

on121andanyr ulesmadet hereunder ,t he
RevisionalAuthorit
ymay, onhi sownmot ion, oruponi nformationr eceivedbyhi m or
onrequestf rom theCommi ssionerofcent raltax,callforandexami net her ecor dof
anypr oceedings,andi fheconsi derst hatanydeci si
onoror derpassedundert his
Actorundert heCent r
alGoodsandSer vicesTaxActbyanyof fi
cersubor dinat et o
himi serroneousi nsof arasi tispr ejudicialtot heinterestofr evenueandi si l
legal
orimpr operorhasnott akeni ntoaccountcer tainmat erialf
acts, whetheravai lableat
thetimeofi ssuanceoft hesai dor derornotori nconsequenceofanobser vat i
onby
the Compt roll
erand Audi torGener alofI ndia,he may,i fnecessar y,stay t he
operationofsuchdeci sionoror derf orsuchper i
odashedeemsf i
tandaf t
ergi ving
theper sonconcer nedanoppor t
unityofbei nghear dandaf t
ermaki ngsuchf urther
i
nquiryas maybe necessar y,pass such or der,as he t hinks justand pr oper,
i
ncludingenhanci ngormodi f
yi ngorannul li
ngt hesai ddecisionoror der.

(
2)TheRevi
sionalAut
hor
it
yshal
lnotexer
ciseanypowerundersub-
sect
ion(
1),
i
f––

(
a)theorderhasbeensubjectt
oanappealundersect
ion107orsect
ion112or
sect
ion117orsecti
on118;or

(
b)theperi
odspecif
iedundersub-
sect
ion(
2)ofsect
ion107hasnotyetexpi
redor
mor
ethanthreeyear
shaveexpiredaft
erthepassi
ngofthedeci
sionoror
dersought
t
oberevi
sed;or

(c)theor
derhasal
readybeent
akenf
orr
evi
sionundert
hissect
ionatanear
li
er
st
age;or

(d)theor derhasbeenpassedi nexerci

seofthepowersundersub-secti
on( 1):
Providedt hattheRevisi
onalAuthori
tymaypassanor derundersub-secti
on( 1)onany
pointwhichhasnotbeenr aisedanddecidedinanappealref
erredtoinclause( a)ofsub-
secti
on( 2),beforetheexpiryofaper i
odofoneyearf r
om thedateoft heor derinsuch
appealorbef oretheexpiryofaperiodofthreeyear
srefer
redtoinclause(b)oft hatsub-
secti
on,whi cheverisl
ater.
(
3)Everyor derpassedinrevi
sion undersub-
secti
on (
1)s hal
l,subj
ecttothe
provi
sionsofsect
ion113orse ct
ion117orsect
ion118,befi
nalandbindi
ngon
theparti
es.

(
4)Ift
hes ai
dde c i
sionoror derinvolvesani ssueonwhi chtheAppe ll
at eTribunal
ortheHi ghCour thasgi veni t
sde cisi
oni ns omeot herpr oc eedingsandan
appealt otheHi ghCour tort heSupr emeCour tagainstsuc hde cisi
onoft he
Appe l
lateTri
bunalort heHi ghCour tispe nding,t
hepe ri
ods pentbe t
we enthe
dateoft hede cisionoft heAppe l
lat
eTr ibunalandthedat eoft hede ci
sionof
theHighCour tort hedateoft hede ci
sionoft heHighCour tandt hedat eofthe
deci
s i
onoft heSupr emeCour tshallbee xcludedinc omput ingt hepe r
iodof
l
imitati
onr eferredt oinc lause( b)ofs ub-secti
on( 2)whe repr oc eedingsf or
revi
sionhav ebe eni ni
ti
atedbywayofi s sueofanot i
ceunde rthiss e ct
ion.

(
5)Whe r
et hei
ssuanceofanorderunders ub-
sect
ion(1)isstayedbytheor derof
ac ourtorAppell
ateTri
bunal,thepe r
iodofs uchstays hal
lbee xc l
udedi n
computingtheper
iodofl
imit
ationref
erredt
oinc l
ause(b)ofsub-sect
ion(2).

(
6)Fort
hepur
posesoft
hissect
ion,
thet
erm,
––

(
i)“recor
d”shal
lincl
udeallrecor
dsrel
ati
ngt oanyproceedi
ngsundert
hisAct
avai
labl
eatthet
imeofexaminat
ionbytheRevi
sionalAut
hor
it
y;

(
ii
)“ deci
sion”shal
lincl
udei
nti
mat
iongi
venbyanyof
fi
cerl
oweri
nrankt
hant
he
Revi
sionalAut
horit
y.

109.(
1)Subj
ectt
othe pr
ovi
sions oft
his Chapt
er,t
he Goods and Ser
vices Tax
Tr
ibunalconsti
tut
edundert heCentralGoodsandSer vi
cesTaxActshal
lbet he
Appell
ateTri
bunalforheari
ngappealsagainsttheorderspassedbyt
heAppel
late
Author
ityort
heRevisionalAut
hor
ityunderthisAct.

(2)Theconst ituti
onandj ur
isdi
cti
onoft heSt ateBenchandt heAr eaBenches
l
ocatedi ntheSt at
eshal lbeinaccordancewi tht
heprovisi
onsofsection109ofthe
Centr
alGoodsandSer vi
cesTaxActort herulesmadethereunder
.
110.The qual if
ications,appoi ntment,salary and all
owances,t er
ms of of f
ice,
resi
gnationandr emoval ofthePresidentandMember soft heStateBenchand
AreaBenchesshal lbei naccordancewi ththeprovi
sionsofsection110oft he
CentralGoodsandSer vicesTaxAct .
111.(1)TheAppellateTri
bunalshallnot,whiledisposingofanypr oceedingsbef
oreit
oranappealbef oreit
,beboundbyt hepr ocedurelaiddowni nt heCodeofCi vi
l
Procedur
e,1908,butshal
lbegui dedbyt hepr i
nciplesofnat
uraljusti
ceandsubject
totheotherprovisi
onsoft hisActandt her ulesmadet hereunder,theAppell
ate
Tri
bunalshal
lhavepowertor egulat
eitsownpr ocedure.

(
2)TheAppe ll
ateTr i
bunals hall
,fort
hepur posesofdischar
gingi tsfuncti
ons
underthi
sAc t,havet hesamepowe rsasar evest
edinac i
vilcourtunderthe
CodeofCi vi
lPr ocedure,1908,whi
letr
yingas uiti
nrespectoft hefoll
owing
matt
e r
s,name l
y:—
(
a)summoni
ngandenf
orci
ngt
heat
tendanceofanyper
sonandexami
ninghi
m onoat
h;

(
b)r
equi
ri
ngt
hedi
scover
yandpr
oduct
ionofdocument
s;

(
c)r
ecei
vingevi
denceonaf
fi
davi
ts;

(d)subj
ecttothepr
ovi
sionsofsect
ions123and124oftheIndi
anEvi
denceAct,1872,
requi
sit
ioni
nganypubl
icrecor
dordocumentoracopyofsuchr
ecor
dordocumentfrom
anyoffi
ce;

(
e)i
ssui
ngcommi
ssi
onsf
ort
heexami
nat
ionofwi
tnessesordocument
s;

(
f)di
smi
ssi
ngar
epr
esent
ati
onf
ordef
aul
tordeci
di texpar
ngi te;

(g)set
ti
ngasi
deanyor derofdi
smi
ssalofanyr
epr
esent
ati
onf
ordef
aul
toranyor
der
texpar
passedbyi te;and

(
h)anyot
hermat
terwhi
chmaybepr
escr
ibed.

(
3)Anyorde rmadebyt heAppell
ateTri
bunalmaybee nf
orce dbyitint
hes ame
manne rasifitwereade cr
eemadebyac ourtinas ui
tpe ndingt
herei
n,andit
shal
lbel awfulf
ortheAppe l
lat
eTribunaltosendf orexecutionofi
tsorderst
o
t
hec ourtwit
hinthelocal
li
mitsofwhos ejur
isdict
ion,
—

(a)inthecaseofanor
deragai
nstacompany,t
her
egi
ster
edof
fi
ceoft
hecompanyi
s
sit
uated;or

(
b)i
nthecaseofanor deragai
nstanyotherperson,t
heper
sonconcer
nedvol
unt
ari
ly
r
esi
desorcar
ri
esonbusinessorper
sonal
lyworksforgai
n.

(
4)Allproceedingsbe foretheAppe l
lat
eTribunalshal
lbedeemedtobejudicial
proceedingswithintheme aningofsecti
ons193and228,andf
orthepurposes
ofsec t
ion196oft heI ndi
anPe nalCode,andtheAppel
lat
eTri
bunalshallbe
deeme dt obec ivi
lcourtforthepurposesofsecti
on195andChapt
erXXVIof
theCodeofCr i
minal Pr
oc edur
e,1973.

112.(1)Anyper sonaggri
evedbyanor derpassedagai
nsthim undersect
ion107or
sect
ion108oft hi
sActortheCentr
alGoodsandSer vi
cesTaxActmayappealt othe
Appell
ateTribunalagainstsuchorderwithi
nthreemonthsfr
om thedateonwhi ch
theordersoughtt obeappealedagainsti
scommuni cat
edtot heper
sonpreferr
ing
theappeal
.

(
2)TheAppe ll
ateTri
bunalmay ,i
nitsdiscr
eti
on,r
efusetoadmitanys uchappeal
whe r
et hetaxorinputtaxcredi
tinvol
vedorthediff
erenceintaxorinputtax
credi
tinvol
v edortheamountoffine,f
eeorpenalt
yde t
e r
minedbys uchorder
,
doesnote xceedfi
ftyt
housandrupees.
(
3)The Commi ssi
onermay ,on hi s own mot i
on,orupon r equestf rom t he
Commi s si
one rofc e nt
raltax,callforande xaminet her ecordofanyor der
passedbyt heAppe llat
eAut hor
ityortheRev isi
onalAut hori
tyunde rthisAc tor
undert heCe ntralGoodsandSe rvi
c esTaxAc tforthepur poseofs atisf
ying
hi
ms elfast othelegal i
tyorpropri
e t
yofthes aidorderandmay ,byorde r,dir
e ct
anyof fi
cers ubordinatet ohimt oappl ytot heAppe l
lateTribunalwi thi
ns i
x
months f rom t he dat e on whi cht he said or derhas be en pass edf or
det
e r
mi nati
onofs uchpoi nt
sar i
singoutoft hes aidorderasmaybes pecif
ied
bytheCommi ssi
one rinhisorder
.

(
4)Whe r
einpursuanc eofanor derunde rs ub-sect
ion(3)theaut hori
se doff
icer
mak esanappl
icati
ont otheAppe l
lateTribunal,suchappl
ications hallbede al
t
wit
hbyt heAppe l
lateTri
bunalasi fitwe reanappe almadeagai nstt heorder
undersub-
secti
on( 11)ofsecti
on107orunde rs ub-
secti
on( 1)ofs ec ti
on108
andtheprovi
sionsoft hi
sActs hal
lappl ytos uchappli
cation, astheyapplyi n
rel
ati
ontoappealsfil
edundersub-s ect
ion(1).

(
5)Onr ecei
ptofnot i
cethatanappe alhasbeenpr ef
e r
redunderthiss ecti
on,t he
part
yagai nstwhom theappe alhasbe enpref
err
edmay ,not
withstandingt hat
hemaynothav eappe al
edagainstsuchorderoranypar tther
e of,fil
e,within
for
tyfi
veday soft her ecei
ptofnot i
ce,ame mor andum ofc r
os s-object
ions,
ver
ifiedinthepr escri
be d manner
,againstanypar toftheor derappe aled
againstands uchme morandum shallbedi
sposedofbyt heAppe ll
ateTr i
bunal,
asifitwereanappe alpresent
edwithi
ntheti
mes pe ci
fi
edinsub-section(1).

(
6)TheAppe ll
ateTr ibunalmayadmi tanappe alwi thinthreemont hsaf t
erthe
expir
yoft hepe r
iodr efe r
redt oins ub-s ect
ion( 1),orpe rmitthef i
l
ingofa
me morandum ofc r
oss -
obj ect
ionswi t
hinf ort
y f
iveday safterthee xpi
ryofthe
peri
odr ef
erredtoi ns ub-se ct
ion(5),i
fi tiss ati
sfi
e dthattherewass uf
fi
cient
causefornotpre senti
ngi twithinthatperiod.
(
7)Anappe altot heAppe llateTr i
bunals hallbei ns uchform,v eri
fi
edi nsuc h
manne randshal l
beac compani edbys uc hfee ,
asmaybepr escr
ibed.
(
8)Noappe alshallbefil
edunde rs ub-
secti
on( 1),unlesstheappe l
lanthaspaid––

(
a)i
nful
l,
suchpartoftheamountoftax,
int
erest
,fi
ne,
feeandpenal
tyar
isi
ngf
rom
t
hei
mpugnedorder
,asisadmit
tedbyhim,and

(
b)asum equalt otwentypercent.oftheremai
ningamountoftaxindi
sput
e,in
addi
tiontotheamount pai
dundersub-
secti
on(6)ofthesect
ion107,ar
isi
ngfr
om the
sai
dor der
,inr
elat
iontowhichtheappealhasbeenfi
led.

(
9)Wheretheappe l
l
anthaspaidtheamountaspersub-
sect
ion(
8),therecover
y
pr
oceedingsforthebalanceamountshallbedeemedtobes tayedtillt
he
di
sposaloftheappeal
.
(
10) Everyappli
cati
onmadebeforet
heAppel
lat
eTri
bunal
,—

(
a)i
nanappealf
orr
ect
if
icat
ionofer
rororf
oranyot
herpur
pose;or

(
b)f
orr
est
orat
ionofanappeal
oranappl
icat
ion,
shal
lbeaccompani
edbysuchf
eesasmaybepr
escr
ibed.

113.(1)The Appellat
e Tr i
bunalmay,af tergiving t he par t
ies tothe appealan
oppor
tuni
tyofbeinghear d,passsuchor derst hereonasi tthinksfit
,confir
mi ng,
modif
yingorannull
ingthedecisi
onororderappeal edagai nstormayr efert
hecase
back tothe Appel
late Authori
ty,orthe RevisionalAut hori
tyortot he origi
nal
adj
udicat
ing aut
horit
y,wi t
h such dir
ecti
ons as i tmay t hink fi
t,fora f resh
adj
udicat
ionordeci
sionaft
ertaki
ngaddit
ionalevidence,ifnecessar y.

(
2)TheAppe l
l
ateTr i
bunalmay ,ifsuf
fi
cientc ausei
ss hown,atanys t
ageof
hear
ingofanappe al
,grantt
imetothepar t
iesoranyofthem andadj
ournt
he
hear
ingoftheappealf
orreasonst
ober ecordedinwr
it
ing:

Provi
dedthatnosuchadjour
nmentshal
lbegr
ant
edmor
ethant
hreet
imest
oapar
ty
dur
ingheari
ngoftheappeal
.

(
3)TheAppell
ateTribunalmayame ndanyor derpassedbyitundersub-sect
ion
(1)soastorect
if
yanye rrorappar entonthefaceoftherecor
d,i
fsuche r
roris
noti
cedbyitonit
sownac cord,orisbroughttoitsnot
icebytheCommiss i
oner
ortheCommi ssi
one rofcentraltaxort heotherpart
yt otheappealwit
hina
peri
odoft
hreemont hsfrom t
hedat eoftheorde r
:

Provi
dedthatnoamendmentwhi chhast heef
fectofenhancinganassessmentor
reducingar ef
undorinputtaxcredi
torotherwi
sei ncr
easi
ngthel i
abi
li
tyoftheother
party,shallbe made underthi
s sub-
sect
ion,unless t
he par
ty has been gi
ven an
oppor t
unit
yofbei
ngheard.

(
4)TheAppel
lateTr
ibunalshal
l,asfaraspossi
ble,hearandde ci
deever
yappeal
wit
hinaperi
odofoney earf
rom t
hedateonwhic hi
tisfi
led.

(
5)TheAppe ll
ateTri
bunals hal
lsendac opyofe ver
yor derpassedunderthi
s
sect
iontot heAppell
ateAuthori
tyortheRevisi
onalAuthor
it
y,ortheori
ginal
adj
udicat
ing authori
ty, as the case may be ,the appe l
l
ant and the
Commis si
onerorthej
urisdi
cti
onalCommissi
onerofcentr
alt
ax.

(
6)Saveasprovi
dedi
nsecti
on117orsect
ion118,
order
spassedbyt
heAppel
lat
e
Tri
bunal
onanappeal
s hal
lbef
inal
andbindi
ngonthepar
ti
es.

114.TheSt
atePr
esi
dentshal
lexer
cisesuchf
inanci
alandadmi
nist
rat
ivepower
sover
theStateBenchandAr
eaBenchesoft
heAppel
lat
eTr
ibunali
naSt
ate,asmaybe
prescr
ibed:

Providedt hattheStatePresidentshallhavet heauthori

tytodel egatesuchofhis
fi
nancialandadmi nist
rat
ivepower sashemayt hinkfi
ttoanyot herMemberorany
offi
ceroft heStat
eBenchorAr eaBenches,subjecttot
hecondit
iont hatsuchMember
orof fi
cershall,whi
leexerci
singsuchdel egatedpower s,cont
inuet oactunderthe
di
rection,contr
olandsupervi
sionoftheStatePresident
.
115.Wher eanamountpai dbytheappel l
antundersub-secti
on(6)ofsection107orsub
-sect
ion( 8)ofsecti
on112isrequiredtober ef
undedconsequentt oanyor derofthe
AppellateAuthorit
yoroftheAppel lat
eTr i
bunal
,interestattheratespeci
fiedunder
secti
on56shal lbepayableinrespectofsuchr efundf rom thedateofpaymentof
theamountt i
llt
hedateofref
undofsuchamount .

116.( 1)Anyper sonwhoi sentit

ledorr equi
redtoappearbeforeanof fi
cerappointed
undert hi
sAct ,ortheAppellateAuthorit
yort heAppell
ateTribunali nconnection
withanypr oceedingsunderthisAct,may,otherwi
sethanwhenr equiredunderthis
Acttoappearper sonal
lyforexaminationonoathoraffi
rmati
on, subjecttotheother
provisi
onsoft hi
ssecti
on,appearbyanaut hori
sedrepr
esentat
ive.

(
2)Forthepurposesoft hi
sAc t,t
heexpr
ess i
on“author
isedrepresent
ative”shal
l
me an aperson aut
horised bytheperson r
efer
redt oins ub-sect
ion (1)to
appearonhisbehalf
,being—

(
a)hi
srel
ati
veorr
egul
arempl
oyee;or

(
b)anadvocatewhoi
senti
tl
edtopract
iceinanycourti
nIndi
a,andwhohasnot
beendebar
redfr
om pr
act
ici
ngbef
oreanycourti
nIndi
a;or

(c)anychart
eredaccountant
,acostaccount
antoracompanysecr etar
y,who
hol
dsacert
if
icat
eofpract
iceandwhohasnotbeendebar
redf
rom pr
act
ice;or

(d)areti
redoff
iceroft
heCommer ci
alTaxDepart
mentofanyStat
eGovernmentor
Uni
ont er
ri
toryoroft heBoardwho,duri
nghi sser
viceundert
heGovernment,had
workedinapostnotbel ow therankt
hant hatofaGr oup-
BGazet
tedoff
icerfora
per
iodofnotlesst
hant woyears:

Pr
ovidedt
hatsuchoff
icershal
lnotbeenti
tl
edt
oappearbefor
eanyproceedi
ngs
underthi
sActforaper
iodofoneyearfrom t
hedat
eofhi
sr et
ir
ementorr
esignat
ion;
or

(e)anypersonwhohasbeenaut hori
sedt oactasagoodsandser
vicest
ax
pr
acti
ti
oneronbehal
foft
heconcer
nedregi
ster
edperson.

(
3)Noper
son,
—

(
a)whohasbeen di
smi
ssedorr
emovedf
rom Gover
nmentser
vice;or

(
b) whoisconvi
ctedofanof fenceconnectedwi th
any proceedi
ngs undert his Act
,the Centr
alGoods and Services Tax Act
,t he
Int
egratedGoodsandSer vicesTaxActortheUni
onTerri
tor
yGoodsandSer vi
cesTax
Act,orundertheexi
sti
ngl aworunderanyoft heActspassedbyaSt ateLegisl
ature
deali
ngwi t
htheimposit
ionoft axesonsaleofgoodsorsupplyofgoodsorser vi
ces
orboth;or

c)wh
( oi
sfoundgui
lt
yofmi
sconductbyt
hepr
escr
ibedaut
hor
it
y;
 (
d)whohasbeenadj
udgedasani
nsol
vent
,

shal
lbequal
if
iedt
orepr
esentanyper
sonundersub-
sect
ion(
1)––

(
i)f
oral
lti
mesi
ncaseofper
sonsr
efer
redt
oincl
auses(
a),
(b)and(
c);and

(
ii
)fort
heperiodduri
ngwhi
cht
hei
nsol
vencycont
inuesi
nthecaseofaper
son
r
eferr
edtoi
nclause(d)
.

(
4) Anype r
sonwhohasbe endisquali
fi
edunde rthepr ovi
sionsoft heCe ntr
al
GoodsandSe rvi
c esTaxAc tortheGoodsandSe r
vicesTaxAc tofanyot he r
StateortheUnionTe rri
toryGoodsandSe rvicesTaxAc tshallbede emedtobe
disqual
ifi
edunde rthi
sAc t.
117.( 1)Anyperson aggrieved byanyor derpassed byt heSt at
eBench orAr ea
BenchesoftheAppellat
eTr i
bunalmayfil
eanappealt otheHighCour tandt
heHi gh
Courtmayadmi tsuchappeal ,i
fiti
ssatisf
iedthatthecaseinvolvesasubstantial
questi
onofl
aw.

(
2)Anappe alundersub-sect
ion(1)shal
lbefil
edwi t
hinape r
iodofonehundred
andeightydaysfrom t
hedat eonwhichtheorderappeal
edagainsti
srecei
ved
bytheaggrievedper
sonandi tshal
lbeinsuchform,veri
fi
edinsuchmanneras
maybepr escri
bed:

Pr
ovidedthattheHi
ghCourtmayentert
ainanappealaf
tert
heexpiryoft
hesaidper
iodi
f
i
tissati
sfi
edthatt
herewassuf
fi
cientcausef
ornotfi
li
ngitwit
hinsuchperi
od.

(
3)WheretheHighCourti
ss ati
sfi
edthatas ubstant
ialquest
ionoflawisinvol
ved
i
nanyc ase,i
tshal
lfor
mul at
ethatquesti
onandt heappe alshal
lbehe ar
donly
onthequesti
onsoformulated,andtherespondentsshall
,attheheari
ngofthe
appeal
,beal
lowedtoarguethatthecasedoe snotinvol
ves uchquest
ion:

Providedthatnothi
ngint hi
ssub-secti
onshal
lbedeemedt otakeawayorabr i
dgethe
poweroft he courtto hear,forreasons t
o be recor
ded,the appealon anyother
substanti
alquesti
onoflaw notf or
mul at
edbyit,i
fitissat
isf
iedthatthecaseinvol
ves
suchquest i
on.

(
4)TheHi
ghCour
tshal
ldeci
detheque st
ionofl
awsofor
mulat
edandde l
iversuch
j
udgmentt
her
eoncontai
ningthegroundsonwhi
chs uchdeci
sioni
sfounde d
andmayawar
dsuchcostasitdeemsf i
t.

(
5)TheHi
ghCour
tmaydet
ermi
neanyi
ssuewhi
ch–

(
a)hasnotbeendet
ermi
nedbyt
heSt
ateBenchorAr
eaBenches;or

(
b)hasbeenwrongl
ydeterminedbyt
heStateBenchorAreaBenches,
byreasonof
adeci
siononsuchquest
ionoflawasher
einref
err
edtoinsub-
secti
on(3)
.
(
6)Whe r
eanappe alhasbeenfi
ledbef
oretheHighCourt,i
tshallbehe ardbya
Benchofnotlessthant
woJudge softheHighCourt
,ands hallbedec i
dedin
accordancewi
ththeopi
nionofsuchJudgesorofthemajori
ty,ifany,ofsuch
Judges.

(
7)Whe r
et herei
snos uc hmajori
ty,t
heJudge sshal
lstat
ethepointofl aw upon
whichthe ydi
fferandt hecaseshall
,then,behearduponthatpointonly,byone
ormor eoftheot herJudgesoftheHi ghCour tandsuchpointshallbede ci
ded
accordingtotheopinionofthemajorityoftheJudgeswhohav ehe ardthecase
i
ncludingthosewhof irsthear
dit.

(
8)WheretheHighCourtde l
iversajudgmenti
nanappealfil
edbefor
eitundert
his
sect
ion,ef
fectshal
lbegivent osuchjudgmentbyei
thersideonthebasi
sofa
cer
ti
fiedcopyofthejudgme nt.

(
9)Saveasot her
wiseprovidedinthi
sAc t
,thepr ovi
sionsoft heCodeofCivi
l
Procedur
e,1908,r
elat
ingtoappeal
stotheHi ghCourtshal
l
, asfarasmaybe,
appl
yi nt
hecaseofappealsundert
hissect
ion.

118.(
1)Anappealshal
lli
etot
heSupr
emeCour
t-

(a)f
rom anyor
derpassedbyt
heNat
ionalBenchorRegi
onalBenchesoft
heAppel
lat
e
Tri
bunal
;or

(b)fr
om anyj udgmentoror derpassedbyt heHi ghCour
tinanappealmadeunder
sect
ion117i nanycasewhi ch,onitsownmot ionoronanappl
icati
onmadebyoron
behalfofthepartyaggr
ieved,immediatel
yafterpassi
ngofthejudgmentoror
der
,the
HighCourtcer
tif
iest
obeaf itoneforappealt
ot heSupr
emeCourt
.

(
2)Theprovi
sionsoftheCodeofCi vi
lProcedure,1908,rel
ati
ngtoappeal
stothe
SupremeCourtshall
,sofarasmaybe ,applyinthec aseofappeal
sundert
his
sect
ionastheyapplyint
hec aseofappeal
sfrom de cr
eesofaHighCourt
.

(
3)Wherethej
udgmentoft
heHi ghCour
tisvar
iedorr
ever
s edi
ntheappeal
,ef
fect
shal
lbegiventotheorderoftheSupremeCourtinthemannerprovi
dedin
sect
ion117i
nthecaseofajudgmentoft
heHighCourt
.

119.Not wi
thst
anding thatan appealhasbeen pref
erred t
ot heHigh Courtort he
SupremeCour t,sumsduet ot heGovernmentasaresultofanorderpassedbyt he
NationalorRegi onalBenchesoft heAppell
ateTri
bunalundersub-secti
on(1)of
section113oranor derpassedbytheSt at
eBenchorAreaBenchesoftheAppel l
ate
Tri
bunalundersub- secti
on(1)ofsecti
on113oranor derpassedbytheHi ghCourt
undersect i
on117,ast hecasemaybe,shal lbepayableinaccordancewi t
ht he
ordersopassed.

120.(1)TheCommi ssi
onermay,ont herecommendat i
onsoftheCouncil,from ti
meto
ti
me,issueordersorinstruct
ionsordi recti
onsfi
xingsuchmonet aryl i
mits,ashe
maydeem fit
,forthepurposesofregulatingthef
il
ingofappealorapplicati
onbythe
off
i heSt
ceroft atetaxundertheprovisionsofthi
sChapter.
(
2)Whe r
e ,i
npursuanceoft heor der
sori nst
ruct
ionsordi rect
ionsi ssuedunder
sub-sect
ion (
1),the off
iceroft he Statetax has notf i
led an appealor
appli
cati
onagainstanyde cisi
onoror derpassedunde rthepr ovi
sionsoft hi
s
Act,itshal
lnotpr ecl
udes uchof f
iceroftheSt at
et axfrom f i
l
ingappe alor
appli
cati
oninanyot hercaseinvol
vingthesameors i
milarissuesorque st
ions
oflaw.

(
3)Not wit
hs t
andingt hefactthatnoappe alorappl i
cationhasbe enfil
edbyt he
off
ic eroft heSt atetaxpursuanttot heor der
sori nst
ructi
onsordi r
ec t
ions
i
s suedunde rsub-sect
ion(1),noperson,beingapar tyi
nappe alorappli
cation
shallcontendt hattheoff
iceroftheStatetaxhasac quiescedint
hede ci
sionon
thedis put
edi ssuebynotfil
inganappe alorappli
cation.

(
4)TheAppe l
l
ateTr i
bunalorc ourthe ar
ingsuchappe alorappli
cat
ionshallhave
regardtothec i
rcumstanc esunde rwhichappealorappli
cati
onwasnotfiledby
theof fi
ceroft heSt atetaxi n pursuanceoft heor dersorinst
ruct
ionsor
direct
ionsissuedunde rsub-sect
ion(1).

121.Notwithstandinganythingtothecontr
aryinanyprovi
sionsoft hisAct,noappeal
shal
lli
eagai nstanydecisiont
akenororderpassedbyanof f
icerofSt at
etaxi
fsuch
deci
siontakenoror derpassedr el
atest
oanyoneormor eoft hef oll
owingmatter
s,
namely:
–

(
a)anor deroftheCommissi
onerorotherauthor
it
yempower
edt
odi
rectt
ransf
er
ofproceedi
ngsfrom oneof
fi
cert
oanotheroff
icer
;or

(b)anorderpert
aini
ngt
othesei
zur
eorr
etent
ionofbooksofaccount
,regi
sterand
ot
herdocuments;or

(
c)anor
dersanct
ioni
ngpr
osecut
ionundert
hisAct
;or

(
d)anor
derpassedundersect
ion80.

CHAPTER XI
X
OFFENCESANDPENALTI
ES

122.(
1)Wher
eat
axabl
eper
sonwho––
(i
)suppli
esanygoodsorservi
cesorbot
hwithouti
ssueofanyi
nvoi
ceori
ssuesan
i
ncor
rectorfal
sei
nvoi
cewithregardt
oanysuchsupply;

(ii
)issuesanyinvoiceorbil
lwithoutsuppl
yofgoodsorservi
cesorbot
hin
vi
olat
ionofthepr
ovi
sionsoft
hisActorther
ulesmadet
her
eunder
;

(i
ii
)col
lect
sanyamountastaxbutf
ail
stopaythesametotheGover
nmentbeyond
aper
iodofthr
eemonthsf
rom t
hedateonwhichsuchpaymentbecomesdue;
 (
iv)col
lectsanytaxincontravent
ionoftheprovi
sionsoft
hisActbutf
ail
stopay
thesametot heGovernmentbeyondaper i
odofthreemonthsfr
om thedat
eonwhich
suchpaymentbecomesdue;

(
v)fai
lst
odeductt hetaxinaccordancewit
ht heprovi
sionsofsub-sect
ion(1)of
sect
ion51,ordeductsanamountwhi chislesst han theamountr equi
redtobe
deduct
edunderthesai
dsub-sect
ion,orwherehefail
stopaytot heGovernmentunder
sub-
secti
on(
2)thereof
,theamountdeductedastax;

(
vi)fai
lst ocol
lecttaxinaccordancewiththeprovisi
onsofsub-
sect
ion(1)of
secti
on52,orcol l
ectsanamountwhi chislessthant heamountrequir
edtobe
coll
ectedunderthesaidsub-
secti
onorwher ehefai
lstopayt otheGover
nmentthe
amountcollect
edastaxundersub-
secti
on(3)ofsect
ion52;

(vi
i)takesoruti
li
zesinputtaxcr
editwi
thoutact
ualreceiptofgoodsorser
vicesor
bot
heitherful
lyorpart
ial
ly,i
n cont
ravent
ionofthepr
ovisionsofthisActort
her ul
es
madethereunder
;

(
vii
i)f
raudul
ent
lyobt
ainsr
efundoft
axundert
hisAct
;

(i
x)takesordist
ri
but
esi
nputt
axcr
edi
tincont
ravent
ionofsect
ion20,ort
her
ules
madethereunder
;

(
x)falsi
fi
es orsubsti
tutes f
inancialr
ecor
ds orproduces f
ake account
s or
documentsorfurni
shesanyf al
sei nf
ormat
ionorret
urnwithanintent
iontoevade
paymentoftaxdueundert
hisAct;

(
xi)i
sli
abl
etober
egi
ster
edundert
hisActbutf
ail
stoobt
ainr
egi
str
ati
on;

(
xii
)fur
nishesanyfal
sei
nformat
ionwit
hregardtoregi
str
ati
onpar
ti
cul
ars,
eit
herat
t
het
imeofappl yi
ngforr
egi
str
ati
on,
orsubsequent
ly;

(
xii
i)obst
ruct
sorpr
event
sanyof
fi
ceri
ndi
schar
geofhi
sdut
iesundert
hisAct
;

(
xiv)tr
ansport
sanyt axabl
egoodswi
thoutt
hecoverofdocument
sasmaybe
speci
fiedi
nthisbehal
f;

(
xv)suppr
esseshi
stur
noverl
eadi
ngt
oevasi
onoft
axundert
hisAct
;

(
xvi)fai
lst
okeep,maintai
norretai
nbooksofaccountandotherdocument
sin
accordancewi
tht
heprovi
sionsoft
hisActort
her
ulesmadether
eunder;

(
xvii
)f ai
lstof ur
nish infor
mati
on ordocument s cal
led forby an offi
cerin
accordancewitht
hepr ovi
sionsofthi
sActortherulesmadet hereunderorf
urni
shes
fal
seinformati
onordocument sdur
inganypr
oceedingsunderthi
sAct ;

(
xvi
ii
)suppl
ies,
transpor
tsorst
oresanygoodswhi
chhehasr
easonst
obel
ievear
e
 l
iabl
etoconf
iscat
ionundert
hisAct
;

(
xix)i
ssuesanyinvoi
ceordocumentbyusi
ngt
her
egi
str
ati
onnumberofanot
her
r
egi
ster
edperson;

(
xx)t
amper
swi
th,
ordest
roysanymat
eri
alevi
denceordocument
s;

(
xxi
)disposesoffortamper
swi
thanygoodst
hathavebeendet
ained,sei
zed,or
at
tachedunderthi
sAct,

heshallbel
iabletopayapenaltyoftenthousandrupeesoranamountequi val
enttothe
taxevadedort hetaxnotdeductedundersection51orshortdeduct
edordeduct edbut
notpaidtotheGover nmentortaxnotcollectedundersect
ion52orshor tcoll
ectedor
coll
ect
edbutnotpai dtotheGovernmentorinputtaxcredi
tavail
edoforpassedonor
dist
ri
butedi
rregular
ly,ort
heref
undclai
medf raudul
entl
y,
whicheveri
shigher
.

(
2)Anyregist
eredpersonwhos uppl
iesanygoodsors er
vicesorbothonwhich
anytaxhasnotbe enpai
dors hort
-pai
dore r
roneousl
yr ef
unded,orwher
ethe
i
nputtaxcredi
thasbeenwronglyavail
edorut
il
ized,
-

(
a)foranyreason,otherthanther easonoff raudoranywi l
fulmisst
atementor
suppressi
on off actst oe vade tax,s hallbe l
iabl
et o a penal
ty often
thousand rupees ort en pe rc ent.oft he tax due f r
om s uch person,
whicheverishi
ghe r
;
(
b)forreasonoffr
audoranywi l
fulmi sst
ateme ntors uppressi
onoff actsto
evadetax,shal
lbeliabletoape naltyequal t
otenthous andrupeesorthetax
duefrom suchperson, whicheverishigher.
(
3)Anypersonwho––

(a)ai
dsorabet
sanyoft
heof
fencesspeci
fi
edi
ncl
auses(
i)t
o(xxi
)ofsub-
sect
ion
(
1);

(
b)acqui r
es possessi
on of,ori n any way concerns hi
mselfintranspor
ti
ng,
removing,deposi
ti
ng,keeping,conceal
ing,supplyi
ng,orpurchasi
ngorinanyot her
mannerdealswi t
hanygoodswhi chheknowsorhasr easonstobeli
eveareli
ableto
confi
scati
onunderthisActortherulesmadet her
eunder;

(
c)recei
vesorisi
nanywayconcer nedwitht
hesuppl
yof
,orinanyothermanner
deal
swi t
hanysupplyofser vi
ceswhichheknowsorhasreasonstobeli
evear
ei n
cont
raventi
onofanyprovi
sionsoft
hisActort
herul
esmadet
hereunder
;

(
d)fai
lst
oappearbef
oretheoffcerofSt
i atet
ax,when i
ssuedwi
thasummonf
or
appear
ancetogi
veevi
denceorproduceadocumenti
naninqui
ry;

(e)f
ail
stoissuei
nvoicei
naccordancewiththepr
ovi
sionsoft
hisActort
her
ules
madether
eunderorf
ail
stoaccountf
oraninvoicei
nhi
sbooksofaccount
,

shal
lbel
iabl
etoapenal
tywhi
chmayext
endt
otwent
yfi
vet
housandr
upees.
 123.I fapersonwhoi srequiredtof
urni
shani nf
ormationret
urnundersection150fail
s
todosowi t
hintheper i
odspecifi
edint henoticeissuedundersub- sect
ion(3)
thereof,
thepr
operofficermaydir
ect,t
hatsuchpersonshallbeli
abl
et opayapenal t
y
ofonehundr edrupeesf oreachdayoftheperiodduringwhichthefail
uretofur
nish
suchr et
urnconti
nues:

Pr
ovi
dedt
hatt
hepenal
tyi
mposedundert
hissect
ionshal
lnotexceedf
ivet
housand
r
upees.

124.I
fanyper
sonr
equi
redt
ofur
nishanyi
nfor
mat
ionorr
etur
nundersect
ion151,
—

(a)wi
thoutr
easonabl
ecausef
ail
stof
urni
shsuchi
nfor
mat
ionorr
etur
nasmaybe
r
equir
edundert
hatsecti
on,
or

(
b)wil
ful
lyfur
nishesorcausest
ofur
nishanyi
nfor
mat
ionorr
etur
nwhi
chhe
knowst
obef al
se,

heshallbepuni
shablewithafinewhichmayextendtotenthousand r
upeesandincase
ofacont i
nui
ngoffencetoaf urtherfi
newhichmayext endtoonehundr edr
upeesfor
eachdayaf t
erthefi
rstdaydur i
ngwhi cht
heoffenceconti
nuessubjectt
oamaxi mum
l
imitoftwent
yfi
vethousandrupees.

125.Anyperson,whocontr
avenesanyoftheprovi
sionsofthisActoranyrulesmade
t
her
eunderforwhichnopenalt
yissepar
atel
yprovidedfori
nthisAct,
shallbel
iabl
e
t
oapenaltywhichmayextendtot
wentyfi
vethousandrupees.

126.( 1)Noof fi
cerunderthisActshalli
mposeanypenaltyforminorbreachesoftax
regulat
ionsorpr ocedur
alrequi
rementsandinpar
ti
cul
ar,anyomissi
onormi st
akein
document ati
onwhi chi
seasi l
yrecti
fi
ableandmadewi thoutfr
audulentint
entor
grossnegligence.

Expl
anat
ion.
––Fort
hepur
poseoft
hissub-
sect
ion,
––

(a)abreachshallbeconsider
eda‘
minorbr
each’i
ftheamountoft
axi
nvol
vedi
s
l
essthanf
ivethousandrupees;

(
b)anomi ssi
onormist
akei ndocument
ati
onshallbeconsi
der
edt
obeeasi
ly
r
ect
if
iabl
eift
hesamei
sanerrorappar
entont
hefaceofrecor
d.

(
2)The penalt
yi mposed underthi
s Actshal
lde pend on t
he f
acts and
ci
rcumstancesofeachc aseandshal
lcommensuratewit
hthedegr
eeand
sever
it
yofthebreach.

(
3)Nopenal
tyshal
lbei
mposedonanyper
sonwi
thoutgi
vinghi
m anoppor
tuni
ty
ofbei
nghear
d.
(
4)Theoffi
cerunderthi
sAc tshallwhil
eimposi
ngpe nal
tyi
nanor derf
orabreach
ofanyl aw,regul
ati
onorpr ocedur
alrequi
rement,speci
fythenatur
eoft he
breachandtheappli
c abl
elaw,regul
ati
onorprocedur
eunde rwhi
chtheamount
ofpenalt
yfort
hebr eachhasbe enspeci
fi
ed.

(
5)Whe n a pe rson v ol
untaril
y dis cl
osest o an of f
icer undert his Actt he
cir
cums tancesofabr eachoft hetaxlaw,regulati
onorproc edur
alrequir
eme nt
pri
ort othedi scoveryoft hebr eachbyt heof fi
cerunderthisAc t,theproper
offi
cermayc onsidert
hisfac tasami t
igat
ingfactorwhenquant i
fyi
ngape nalty
forthatperson.

(
6)Theprovisi
onsofthi
ss ect
ionshal
lnotappl
yinsuchcaseswhe r
et hepenalt
y
speci
fi
ed underthis Actiseithera fi
xeds um orexpressed as a fi
xed
per
centage.

127.Wher etheproperof
fi
ceri
softheviewt hataper sonisli
abletoapenal
tyandthe
samei snotcoveredunderanypr oceedingsundersect ion62orsection63or
sect
ion64orsect i
on73orsecti
on74orsect i
on129orsect ion130,hemayissue
anorderlevyi
ngsuchpenal
tyaf
tergi
vingar easonableopport
unit
yofbei
ngheardto
suchperson.

128.TheGover nmentmay,bynoti
fi
cat
ion,wai
veinpartorful
l,anypenalt
yref
erredt
o
i
nsection122orsecti
on123orsect
ion125oranyl at
efeer ef
err
edtoinsecti
on47
forsuchclassoftaxpayer
sandundersuchmi t
igati
ngcir
cumst ancesasmaybe
speci
fi
edtherei
nontherecommendati
onsoftheCouncil
.

129.( 1)Notwi
thstandinganyt hi
ngcont ainedint hi
sAct,wher eanypersontranspor
ts
anygoodsorst oresanygoodswhi letheyar eintransitincont
ravent
ionoft he
provisi
onsofthisActort herulesmadet hereunder
,allsuchgoodsandconveyance
usedasameansoft ransportforcarryingthesaidgoodsanddocument srelati
ngto
such goods and conveyance shal lbe liabl
et o detent
ion orsei
zure and aft
er
detenti
onorseizure,shallbereleased,
––

(a)onpaymentoftheappli
cablet
axandpenaltyequaltoonehundredpercent.ofthe
taxpayableonsuchgoodsand,incaseofexemptedgoods,onpaymentofanamount
equalt
ot wopercentoft
hevalueofgoodsortwent
yfivethousandr
upees,whi
cheveris
l
ess,wheretheowneroft
hegoodscomesf or
wardforpaymentofsuchtaxandpenalt
y;

(
b)onpaymentoft heappli
cabl
etaxandpenal t
yequaltothef i
ft
ypercent.ofthe
valueofthegoodsr educedbyt het axamountpaidthereonand,incaseof
exemptedgoods,onpaymentofanamountequalt ofi
vepercentofthevalueof
goodsortwentyfi
vethousandrupees,whi
cheveri
sless,wheretheownerofthe
goodsdoesnotcomef or
wardforpaymentofsuchtaxandpenalt
y;

(
c)uponfurni
shi
ngasecurit
yequi
val
entt
otheamountpayabl
eundercl
ause(
a)or
cl
ause(b)i
nsuchf
orm andmannerasmaybepr
escr
ibed:

Pr
ovi
dedt
hatnosuchgoodsorconveyanceshal
lbedet
ainedorsei
zedwi
thout
 ser
vinganorderofdet
enti
onorseizur
eonthepersont
ranspor
ti
ngt
hegoods.
(
2)Theprovi
sionsofsub-sect
ion(6)ofsecti
on67shall,mutat
ismutandi
s,appl
yfor
det
enti
onandseizureofgoodsandconveyances.

(
3)Thepr operoffi
cerdetaini
ngorsei zi
nggoodsorconveyancesshalli
ssueanotice
speci
fyingthetaxandpenal t
ypayabl eandthereaft
er,passanor
derf
orpaymentof
taxandpenaltyunderclause(a)orclause(
b)orclause(c).

(
4)Notax,i
nter
estorpenal
tyshal
lbedeter
mi nedundersub-
sect
ion(
3)wi
thoutgi
ving
t
hepersonconcer
nedanopport
uni
tyofbeingheard.

(
5)Onpaymentofamountref
err
edi nsub-
sect
ion(1)
,al
lproceedingsi
nrespectoft
he
not
icespeci
fi
edi
nsub-
sect
ion(3)shal
lbedeemedtobeconcluded.

(
6)Wher ethepersont ransport
inganygoodsortheowneroft hegoodsf ai
lst
opaythe
amountoft axandpenal t
yaspr ovi
dedinsub-sect
ion(1)wit
hinsevendaysofsuch
detenti
onorsei zure,furt
herproceedi
ngsshallbei ni
ti
atedinaccordancewi
ththe
provisi
onsofsecti
on130:

Provi
dedthatwherethedetai
nedorsei zedgoodsareperi
shabl
eorhazar
dousin
natur
eorareli
kelytodepreci
atei
nval uewithpassageofti
me,thesai
dperi
odof
sevendaysmaybereducedbytheproperoff
icer
.

130.(
1)Not
wit
hst
andi
nganyt
hingcont
ainedi
nthi
sAct
,ifanyper
son–

(
i)suppli
esorr
ecei
vesanygoodsincont
ravent
ionofanyoft
heprovi
sionsoft
hisActor
t
her ul
esmadether
eunderwi
thint
enttoevadepaymentoft
ax;or

(
ii
)doesnotaccountf
oranygoodsonwhi
chhei
sli
abl
etopayt
axundert
hisAct
;or

(
ii
i)suppl
iesanygoodsl
iabl
etot
axundert
hisActwi
thouthavi
ngappl
iedf
or
r
egistr
ati
on;or

(
iv)cont
ravenesanyoftheprovi
sionsoft
hisActort
her
ulesmadet
her
eunderwi
thi
ntent
t
oevadepaymentoft ax;or

(v)usesanyconveyanceasameansoft ransportf
orcar r
iageofgoodsi ncontravent
ion
ofthepr ovi
sionsoft hi
sActort herul
esmadet hereunderunlesst heowneroft he
conveyancepr ovesthatitwassousedwi thouttheknowl edgeorconni vanceoft he
ownerhimself,hisagent
,ifany,
andt
hepersoninchargeoft heconveyance,

then,al
lsuchgoodsorconveyancesshal
lbel
iabl
etoconf
iscat
ionandt
heper
sonshal
l
beliabl
etopenal
tyundersecti
on122.
(
2)Wheneverconf i
scat
ionofanygoodsorconveyanceisauthor
isedbyt
hisAct,t
he
off
iceradj
udgingitshal
lgivet
otheowneroft hegoodsanoptiont
opayinl
ieuof
confi
scati
on,
suchf i
neasthesai
doff
icert
hinksfi
t:

Provi
ded t
hatsuch f
ineleviabl
e shallnotexceed t
hemar
ketval
ueoft
hegoods
confi
scat
ed,l
esst
hetaxchargeablet
her
eon:

Provi
dedfurt
herthattheaggregateofsuchfineandpenal
tyleviabl
eshal
lnotbel
ess
thantheamountofpenal
tylevi
ableundersub-
sect
ion(
1)ofsecti
on129:

Provi
ded alsothatwhereanysuchconveyancei susedf ort
hecarri
ageofthegoodsor
passengersforhir
e,theowneroft heconveyanceshallbegi
venanoptiontopayinli
eu
oftheconfiscat
ionoftheconveyanceafineequaltothetaxpayabl
eont hegoodsbei
ng
tr
ansportedther
eon.

(
3)Wher eanyfinei
nlieuofconfi
scat
ionofgoodsorconveyanceisi
mposedundersub-
secti
on( 2)
,theownerofsuchgoodsorconveyanceorthepersonref
err
edtoinsub-
secti
on( 1)
,shall
,inaddit
ion,beli
ablet
oanyt ax,penalt
yandchargespayabl
ein
respectofsuchgoodsorconveyance.

(
4)Noorderf
orconfi
scati
onofgoodsorconveyanceorforimposit
ionofpenal
tyshal
l
bei
ssuedwit
houtgi
vingtheper
sonanopport
unit
yofbeingheard.

(
5)Whereanygoodsorconveyancear econfi
scat
edunderthi
sAct
,thet
it
leofsuch
goodsorconveyanceshal
lther
euponvesti
ntheGover
nment.

(
6)Thepr operof fi
ceradjudgingconfi
scat
ionshalltakeandhol dpossessi
onofthe
thi
ngsconf iscatedandever yoffi
cerofPolice,onther equi
sit
ionofsuchpr
oper
off
icer
,shallassisthi
mi ntaki
ngandholdingsuchpossession.

(
7)The properoffi
cermay,af t
ersatisf
ying himselfthatthe conf
iscat
ed goods or
conveyancearenotrequi
redi
nanyot herpr
oceedingsunderthisActandaf tergivi
ng
reasonabl
et i
menotexceeding thr
eemont hsto payf i
neinl i
eu ofconf iscati
on,
disposeofsuchgoodsorconveyanceanddeposi tthesal
eproceedsthereofwi t
hthe
Government.

131.Wi t
houtprejudi
cet otheprovi
sionscont ai
nedintheCodeofCr imi
nalProcedur
e,
1973,noconfiscati
onmadeorpenal tyimposedundertheprovi
sionsofthi
sActor
therul
esmadet hereundershallpreventtheinf
li
cti
onofanyot herpuni
shmentt o
whichthepersonaf f
ectedther
ebyisl i
ableunderthepr
ovi
sionsofthisActorunder
anyotherl
awf orthetimebeinginforce.

132.(
1)Whoevercommi
tsanyoft
hef
oll
owi
ngof
fences,
namel
y:—

(a)suppli
esanygoodsorser
vicesorbot
hwithouti
ssueofanyinvoice,i
nviol
ationoft
he
provi
sionsofthi
sActort
herulesmadether
eunder,
witht
heintenti
ont oevadetax;
(b)i
ssuesanyi nvoiceorbillwi
thoutsupplyofgoodsorservi
cesorbothinvi
olat
ionof
theprovi
sionsofthisAct,ortherul
esmadet hereunderl
eadi
ngtowrongf
ulavai
lmentor
uti
li
sati
onofinputtaxcreditorr
efundoftax;

(
c)avai
lsi
nputt
axcr
edi
tusi
ngsuchi
nvoi
ceorbi
llr
efer
redt
oincl
ause(
b);

(d)col
lect
sanyamountastaxbutfai
lst
opaythesamet otheGover
nmentbeyonda
peri
odofthreemont
hsf
rom t
hedat
eonwhichsuchpaymentbecomesdue;

(
e)evadest
ax,fr
audul
ent
lyavail
sinputt
axcreditorfr
audul
ent
lyobt
ainsr
efundand
wher
esuchoff
encei
snotcover
edundercl
auses(a)t
o(d);

(
f )falsi
fi
esorsubst
it
utesfi
nanci
alrecor
dsorpr oducesf
akeaccountsordocumentsor
furnishesanyfal
sei
nformati
onwithanintent
iontoevadepaymentoftaxdueundert
his
Act;

(
g)obst
ruct
sorpr
event
sanyof
fi
ceri
nthedi
schar
geofhi
sdut
iesundert
hisAct
;

(h)acquirespossessionof,orinanywayconcer nshimsel
fint
ransport
ing,r
emovi
ng,
deposit
ing,keeping,
conceal
ing,
supplyi
ng,pur
chasingori
nanyot
hermannerdealswit
h,
anygoodswhi chheknowsorhasr easonstobel
ievear
eli
abl
etoconfi
scati
onundert
his
Actorther ul
esmadet her
eunder;

(i
)receivesorisinanywayconcernedwitht hesuppl
yof
,orinanyothermannerdeal
s
with any supply ofservi
ces which he knows orhas r
easons to bel
ieve ar
ein
contr
aventionofanyprovi
sionsoft
hisActortherul
esmadether
eunder;

(
j)t
amper
swi
thordest
roysanymat
eri
alevi
denceordocument
s;

(k)f
ail
stosupplyanyi nf
ormat
ionwhi chhei srequir
edtosuppl
yundert hi
sActort he
rul
esmadet her
eunderor(unl
esswi t
har easonabl
ebeli
ef,t
heburdenofprovi
ngwhi ch
shal
lbe upon him,t hatthe inf
ormation suppli
ed by hi
m ist rue)suppl
ies f
alse
i
nformati
on;
or

(l
)attemptstocommit,orabet
sthecommi
ssi
onofanyoft
heof
fencesment
ionedi
n
cl
auses(a)t
o(k)oft
hissect
ion,

shal
lbepuni
shabl
e––

(i
)incaseswheretheamountoft
axevadedort
heamountofi nputtaxcredi
twrongl
y
avail
edoruti
li
sedortheamountofref
undwronglytakenexceedsfivehundredl
akh
rupees,
wit
himpri
sonmentf
orater
m whi
chmayextendtofi
veyearsandwithfi
ne;
(i
i)incaseswheretheamountoftaxevadedort heamountofi nputtaxcredi
twrongl
y
avail
edorutil
isedortheamountofr efundwr onglytakenexceedst wohundredl
akh
rupeesbutdoesnotexceedf ivehundr
edl akhr upees,wi
thimprisonmentforaterm
whichmayextendtothreeyear
sandwithfine;

(i
ii
)inthecaseofanyotheroffencewheretheamountoftaxevadedort heamountof
i
nputt axcredi
twronglyavai
led oruti
li
sed ortheamountofr efund wrongl
yt aken
exceedsonehundredlakhrupeesbutdoesnotexceedt wohundredlakhrupees,with
i
mpr i
sonmentforater
m whi
chmayext endtooneyearandwit
hfine;

(i
v)incaseswher
ehecommi tsorabetsthecommissi
onofanoff
encespeci
fi
edin
cl
ause(f
)orcl
ause(g)orcl
ause(j
),heshal
lbepuni
shabl
ewi
thi
mpri
sonmentf
orater
m
whichmayext
endtosixmonthsorwit
hfineorwi
thbot
h.

(
2)Whereanypersonconvi
ctedofanoffenceunderthissect
ionisagainconvi
ctedofan
off
enceunderthissect
ion,t
hen,heshallbepunishablef
orthesecondandf orever
y
subsequentof
fencewit
himprisonmentforater
m whi chmayextendtofi
veyearsand
wit
hf i
ne.

(
3)Theimprisonmentref
err
edt oinclauses( i
),(
ii
)and( ii
i)ofsub-sect
ion(1)andsub-
secti
on(2)shal
l,i
ntheabsenceofspecialandadequat ereasonstothecontr
aryt
obe
recor
dedinthejudgmentoftheCourt,
bef oraterm notlessthansixmonths.

(
4)Notwithst
andi
nganyt
hingcontai
nedi
nt heCodeofCriminalProcedur
e,1973,al
l
off
encesunderthi
sAct,exceptt
heof
fencesr
efer
redt
oi nsub-sect
ion(5)shal
lbe
non-cogni
zabl
eandbai
labl
e.

(
5)Theoffencesspeci
fi
edinclause(
a)orclause(
b)orclause(
c)orclause(d)ofsub-
sect
ion(1)andpunishabl
eunderclause(i
)ofthatsub-
sect
ionshallbecogni
zable
andnon-bail
abl
e.

(
6)Aper
sonshallnotbeprosecut
edforanyof
fenceundert
hissect
ionexceptwi
tht
he
pr
evi
oussanct
ionoftheCommissi
oner.

Expl
anat
ion.
-Fort
hepur
posesoft
hissect
ion,
thet
erm“
tax”shal
lincl
udet
heamountof
taxevadedort heamountofi nputtaxcreditwronglyavai l
edoruti
li
sedorr efundwr ongly
takenundert hepr ovi
sionsoft hi
sAct ,theCent r
alGoodsandSer vi
cesTaxAct ,the
I
nt egratedGoodsandSer vicesTaxAct ,andcessl eviedundertheGoodsandSer vices
Tax( Compensat iontoStates)Act .
133.Wher eanypersonengagedi nconnect i
onwi t
ht hecoll
ecti
onofst ati
sti
csunder
section151orcompi lati
onorcomput eri
sati
ont hereoforifanyofficerofSt at
et ax
havingaccesst oinfor mati
onspeci f
iedundersub- sect
ion(1)ofsect i
on150,ori f
anyper sonengagedi nconnect i
onwi t
ht hepr ovisi
onofser vi
ceont hecommon
portalortheagentofcommonpor tal
,wi l
ful
lydi scl
osesanyi nformat i
onort he
 contentsofanyretur
nfurni
shedundert hisActorrul
esmadet her
eunderot herwise
thani nexecut
ionofhi sduti
esundert hesaidsectionsorf orthepur posesof
prosecuti
onforanoff
enceunderthisActorunderanyot herActforthetimebei ngin
force,heshal
lbepunishabl
ewithi mpr
isonmentforater m whi
chmayext endt osix
mont hsorwit
hf i
newhichmayext endt
ot wentyfi
vethousandrupees, orwithboth.

(
2)Anyper
son–

(a)whoisaGover nmentservantshallnotbeprosecut
edf oranyof
fenceundert
his
sect
ionexceptwi
ththepr
evi
oussanctionoftheGovernment
;

(b)whoisnotaGovernmentser
vantshal
lnotbepr
osecutedforanyof
fenceundert
his
sect
ionexceptwi
tht
heprevi
oussanct
ionoft
heCommissioner
.

134.Nocour tshalltakecognizanceofanyof fencepunishableundert

hisActort he
rul
esmadet hereunderexceptwiththeprevi
oussanct i
onoftheCommi ssi
oner,and
nocour
tinferi
ortothatofaMagi str
ateoftheFirstCl
ass,shal
ltr
yanysuchoffence.

135.Inanypr osecuti
onforanoffenceunderthi
sActwhi chrequi
resacul pablemental
st
ateont hepar toft heaccused,thecourtshallpr
esumet heexistenceofsuch
mentalst
atebuti tshallbeadefencefort
heaccusedt oprovethef actthathehad
no such ment alstat
e withrespecttot he actcharged as an offence i
nthat
pr
osecuti
on.

Expl
anat
ion.
—Fort
hepur
posesoft
hissect
ion,
–

(i
)theexpr
ession“culpabl
ementalstat
e”i
ncl
udesi
ntent
ion,mot
ive,
knowl
edgeof
af
act,andbel
iefi
n,orreasontobel
ieve,
afact
;

(i
i)afacti
ssaidt obeprovedonlywhenthecourtbeli
evesittoexistbeyond
reasonabl
e doubt and not merel
y when i
ts exi
stence is est
abl
ished by a
preponder
anceofpr
obabil
it
y.

136.A statementmadeandsi gnedbyaper sononappearanceinresponset oany

summonsi ssuedundersection70dur i
ngthecourseofanyinqui
ryorproceedi
ngs
underthi
sActshallberel
evant,forthepur
poseofprovi
ng,i
nanyprosecuti
onforan
off
enceunderthi
sAct ,
thetr
ut hofthefact
swhichi
tcontai
ns,––

(
a)whenthepersonwhomadet hestatementisdeadorcannotbef ound,oris
i
ncapabl
eofgivi
ngevidence,oriskeptoutofthewaybyt headversepart
y,orwhose
pr
esencecannotbeobtai
nedwi t
houtanamountofdel ayorexpensewhich,underthe
ci
rcumst
ancesofthecase,t
hecour tconsi
dersunr
easonable;or

(b)whent hepersonwhomadet hestat

ementisexaminedasawit
nessinthecase
beforet he courtand the cour
ti s oft he opi
nion t
hat
,havi
ng regardtot he
ci
rcumst ancesoft hecase,thestatementshouldbeadmi tt
edi
nevi denceinthe
i
nterestofjusti
ce.

137.(
1)Wher
eanof
fencecommi
tt
edbyaper
sonundert
hisActi
sacompany,ever
y
 personwho,att heti
met heof f
encewascommi t
tedwasi nchar
geof,andwas
responsi
bleto,
thecompanyf ort
heconductofbusi
nessofthecompany,
aswel
las
thecompany,shallbedeemedt obeguilt
yoftheof f
enceandshal
lbeli
abl
etobe
proceededagai
nstandpunishedaccor
dingl
y.

(
2)Notwithstandingany t
hingc ont
ainedins ub-sect
ion(1),wher
eanof fenceunder
thi
sAc thasbe enc ommi ttedbyac ompanyandi tisprovedthattheoffence
hasbe enc ommi t
tedwi ththeconse ntorconnivanceof,ori
sattri
butabletoany
negli
ge nceont hepar tof,anydi r
ec t
or,manage r,secr
etar
yorot heroffi
cerof
thecompany ,suchdi r
e ct
or,manage r,secret
aryorot heroff
icershallal
sobe
deeme dt obeguiltyofthatof f
enceands hal
lbel i
abletobeproceede dagai
nst
andpuni shedac cordi
ngly.

(
3)Whe r
eanof f
enceunde rthi
sAc thasbe encommi ttedbyat ax abl
epe r
son
bei
ngapar tner
shipfi
rm oraLimit
edLiabil
i
tyPart
ne r
shiporaHi nduUndivi
ded
Familyoratrust
,thepar
tnerorkar
taormanagingtrusteeshal
l bede emedtobe
gui
ltyofthatoff
enceands hal
lbeli
abl
et obeproceededagai nstandpunished
accordi
nglyandtheprovisi
onsofsub-
s ect
ion(
2)s halmut
l at
ismut andisappl
y
tosuchpe r
sons.

(
4)Nothi
ngc ont
ainedinthissecti
ons hal
lrenderanys uchpersonli
abletoany
punishmentpr
ovidedinthi
sAc t,i
fheprovest hattheof
fencewasc ommitt
ed
wit
houthisknowledgeorthathehade xer
cisedallduedi
li
gencetopreventt
he
commi ssi
onofsuchoffence.

Expl
anat
ion.
––Fort
hepur
posesoft
hissect
ion,
–

(
i)“company”meansabodycor
por
ateandi
ncl
udesaf
ir
m orot
herassoci
ati
onof
i
ndi
vidual
s;and

(
ii
)“di
rect
or”
,inr
elat
iont
oaf
ir
m,meansapar
tneri
nthef
ir
m.

138.( 1)Anyof f
enceundert hi
sActmay,ei t
herbef or
eoraf t
ertheinsti
tuti
on of
prosecut
ion,becompounded bytheCommi ssi
oneron payment
,byt heper son
accusedoftheoffence,t
otheCent
ralGover
nmentort heSt
ateGover
nment ,asthe
casemaybe, ofsuchcompoundi
ngamountinsuchmannerasmaybepr escr i
bed:

Pr
ovi
dedt
hatnot
hingcont
ainedi
nthi
ssect
ionshal
lappl
yto–

(
a) aper son who hasbeen allowed t
o compound
onceinrespectofanyoftheoffencesspecifi
edincl
auses(a)to(f
)ofsub-sect
ion
(1)ofsecti
on132andt heoffencesspecifiedi
nclause(l)whicharerel
atableto
off
encesspecif
iedi
nclauses(
a)t o(f
)ofthesaidsub-sect
ion;

(
b) aper son who hasbeen all
owed t
o compound
onceinr espectofanyof f
ence,otherthanthoseinclause(a)
,underthi
sActor
underthepr ovi
sionsofanySt at
eGoodsandSer vi
cesTaxActort heCent
ral
GoodsandSer vi
cesTaxActort heUnionTerri
toryGoodsandServi
cesTaxActor
the I
ntegrated Goods and Ser
vices Tax Actinr espectofsuppli
es ofval
ue
 exceedi
ngonecr
orer
upees;

(
c) aper
sonwhohasbeenaccusedofcommi t
ti
ng
anof
fenceunderthisActwhi
chi
salsoanof
fenceunderanyot
herl
aw f
orthe
ti
mebei
nginforce;

(d) aper sonwhohasbeenconvi ctedf oranof fence

undert hisActbyacour t;
(e) aper sonwhohasbeenaccusedofcommi t
ting
anof fencespeci fi
edi ncl ause( g)orcl ause( j
)or cl
ause( k)ofsub- section( 1)of
section132;and
(f) anyot herclassofper sonsorof fencesasmaybe
prescr ibed:
Providedf urt herthatanycompoundi ngal l
owedundert hepr ovisi
onsoft hissect i
onshal l
notaf f
ectt hepr oceedings, ifany, insti
tut edunderanyot herl aw:
Providedal sot hatcompoundi ngshal lbeal l
owedonl yaf termakingpaymentoft ax,
i
nterestandpenal t
yi nvolvedi nsuchof f ences.
(2)Theamountf orc ompoundi ngofof fence sunde rthiss ecti
ons hal lbes uchas
maybepr escribe d,s ubjec tt ot hemi nimum amountnotbe ingl e sst hant e n
thous andr upe esorf iftype rc ent.oft het axinvolv ed,whi chev eri shi ghe r,and
the max imum amountnotbe i
ng l e sst han thirtyt housand r upe es orone
hundr e dandf if
type rc ent.oft het ax ,whic heveri
shi ghe r.
(3)On pay me ntofs uc hc ompoundi ng amountasmaybede te rmi ned byt he
Commi s sione r,nof ur therpr oc ee dingss hal
lbei niti
at e dunde rthi sAc tagai ns t
the ac c us ed pe rson i nr e spec toft he s ame of fence and any c ri
mi nal
proc eedi ngs ,ifal readyi nitiatedi nr espe ctoft hes aidoffenc e,s halls tand
abat ed.

CHAPTERXX
TRANSI
TIONALPROVI
SIONS

139.(1)Onandf r
om t heappoint
edday,ever yper sonr egister
edunderanyoft he
exi
sti
ngl awsandhavi ngavalidPer manentAccountNumbershal lbeissueda
cert
if
icateofr egist
rati
ononpr ovi
sionalbasi s,subj ecttosuchcondi t
ionsandi n
suchf orm andmannerasmaybepr escr
ibed,whi chunl essrepl
acedbyaf i
nal
cert
if
icateofregistr
ationundersub-
sect i
on(2) ,shallbeliabletobecancell
edifthe
condit
ionssopr escri
bedarenotcompliedwith.

(
2)Thef i
nalc er
ti
fi
c at
eofr egi
s t
rat
ions hal
lbegrantedinsuchform andmanne r
ands ubj
e ctt
os uchconditi
onsasmaybepr escri
bed.
(
3)Thec ert
ifi
cateofregi
strati
onissuedt oapersonundersub-
s ect
ion(1)shal
lbe
deeme dt o have notbe eni ssuedi fthe sai
dr egi
str
ati
on isc ancel
ledin
pursuanceofanappl icati
onf i
ledbys uchpe rsonthathewasnotl i
ableto
regi
strat
ionunde rsect
ion22ors ect
ion24.

140.(1)Aregist
eredperson,otherthanaper sonopt ingtopayt axundersecti
on10,
shal
lbeenti
tl
edtotake,i
nhisel ect
roniccr
editledger,cr
editoftheamountofValue
AddedTax,andEntryTax,ifany,carri
edforwar dintheretur
nr el
ati
ngtotheper
iod
endi
ngwiththedayi mmedi atelyprecedi
ngt heappoi ntedday,furni
shedbyhim
 undert
heexi
sti
ngl
awi
nsuchmannerasmaybepr
escr
ibed:

Pr
ovidedthattheregi
ster
edper
sonshal
lnotbeal
lowedt
otakecr
edi
tint
hef
oll
owi
ng
ci
rcumstances,namel
y:–

(
i) wheret
hesai damountofcredi
tisnotadmissi
ble
asinputtaxcredi
tunderthi
sAct;or
(
ii
) where he has notf ur
nished al
lt he r
eturns
requir
ed undert he exi
sti
ng l
aw fort he per
iod ofsix months i
mmedi at
ely
precedingtheappoi
nteddate;
or

(
ii
i) wher
ethesaidamountofcr
editr
elat
est
ogoods
soldundernoti
fi
cat
ionno.…….and……cl ai
mingref
undofvalueaddedtaxpai
d
ther
eon(wher
eeverappl
icabl
e):

Providedfurthert hatsomuchoft hesai dcr

editasisattr
ibutabletoanycl ai
mr el
atedto
secti
on3,sub- secti
on( 3)ofsect ion5,sect i
on6,sect i
on6A orsub- secti
on( 8)of
secti
on8oft heCent r
alSalesTaxAct ,1956whi chisnotsubst antiatedint hemanner ,
andwi thi
nt heper i
od,prescri
bedi nrule12oft heCent ralSalesTax( Registr
ati
onand
Turnover)Rul es,1957shal lnotbeel i
giblet
obecr edit
edt otheelectroniccreditl
edger:
Providedalsot hatanamountequi valenttothecr edi
tspeci f
iedint hesecondpr ovi
so
shallberefundedundert heexist
ingl awwhent hesai dclai
msar esubst anti
atedinthe
mannerpr escr ibedi nrule12oft heCent r
alSalesTax( Registrati
onandTur nover)
Rules,1957.

(
2)Ar egi
steredperson,otherthanape rsonopt i
ngtopayt axunders ect
ion10,
shal
lbee nt
it
ledtotake,inhiselect
roniccreditl
edger
,credi
toftheunav ail
ed
i
nputt axc r
editi
nr espectofc api
talgoods,notc ar
riedforwardinar et
urn,
fur
nishe dunderthee xist
ingl
aw byhi m,fort heper
iode ndi
ngwi t
ht heday
i
mme diat
ely pr
eceding the appointed day ins uch manne r as may be
prescri
bed:

Providedt hattheregisteredpersonshal lnotbeal l

owedt otakecreditunl
essthesai d
creditwasadmi ssi
bleasi nputtaxcreditundertheexi sti
ngl awandi salsoadmissibleas
i
nputt axcr editunderthisAct .
Explanation.––Fort hepur posesoft hi
ssect i
on,t heexpression“unavai
ledi
nputt ax
credit”meanst heamountt hatr emainsaftersubt r
act i
ngt heamountofi nputtaxcr edi
t
alreadyavai ledinrespectofcapi t
algoodsbyt het axablepersonundert heexist
ingl aw
from theaggr egateamountofi nputt axcredittowhi cht hesaidper sonwasent i
tledin
respectoft hesai dcapitalgoodsundert heexistingl aw.
(
3)Ar egist
ere dpe r
s on,whowasnotl i
ablet ober egist
eredunde rthee xi
sti
ngl aw
orwhowase ngage dint hes al
eofe xe mptedgoodsort axf r
eegoods ,by
what evernamec all
ed,unde rtheexisti
ngl awbutwhi charel i
abletotaxunde r
thisActorwhe r
et hepersonwase nti
tledt othec r
editofi
nputt axatthetimeof
saleofgoods ,ifany ,,shallbee nti
tl
e dt otake,inhise l
e ct
ronicc r
editledger,
creditoft hev al
ueadde dtaxande ntryt ax,i
fany ,i
nr espectofinputshe ldin
stockandi nputsc ontai
ne dins emi-
fini
s hedorf i
nishedgoodshe ldinstockon
theappoi nteddays ubjectt
ot hefoll
owi ngc ondi
tionsname ly:––

(
i)suchinputsorgoodsar
eusedori
ntendedt
obeusedf
ormaki
ngt
axabl
e
suppl
iesundert
hisAct
;

(i
i)t
hesai
dregi
ster
edper
soni
sel
igi
blef
ori
nputt
axcr
edi
tonsuchi
nput
sunder
t
hisAct
;

(i
ii
)thesai
dr egist
eredper
soni
sinpossessionofinvoi
ceorotherprescr
ibed
documentsevi
dencingpaymentoftax undert
heexist
inglaw i
nrespectofsuch
i
nputs;and

(
iv)suchi
nvoi
cesorotherpr escr
ibeddocumentswerei
ssuednotear
li
ert
han
t
wel
vemonthsi
mmediat
elyprecedingtheappoi
ntedday:

Pr ovidedthatwherear egi
steredperson,othert
hanamanuf actur
erorasuppl ierof
services,i snoti n possessi
on ofan i nvoiceoranyot herdocument sevi dencing
paymentoft axinrespectofinput s,
then,suchregi
steredpersonshall
,subjecttosuch
condi ti
ons,li
mi t
ati
onsandsaf eguardsasmaybepr escr
ibed,i
ncludi
ngt hatthesai d
taxabl epersonshallpassont hebenef i
tofsuchcreditbywayofr educedpr i
cestot he
recipient,beal l
owedt ot akecr editatsuchr ateandi nsuchmannerasmaybe
prescr i
bed.

(
4)Aregist
eredperson, whowase ngagedinthes al
eoftaxablegoodsaswe l
las
exemptedgoodsort axf r
eegoods,bywhatevernamec al
led,undert
heexi
sti
ng
l
aw butwhichar eliabletotaxunderthi
sAc t,shal
lbee nti
tl
edtotake,i
nhis
el
ectr
oniccredi
tledge r
,-

(
a)theamountofcr edi
toft hevalueaddedt axandentrytax,ifany,carr
iedforward
i
nar eturnfurni
shedundert heexi st
inglawbyhi mi naccordancewi t
hthepr ovi
sions
ofsub-secti
on(1);and
(
b)theamountofcr editoft hevalueaddedt axandentrytax,i fany,inrespectof
i
nputshel dinstockandi nput
scont ainedi nsemi-f
ini
shedorf inishedgoodshel din
st
ockont heappoi nt
edday,r elat
ingt osuchexempt edgoodsort axfreegoods,by
whatevernamecal led,
inaccordancewi ththeprovi
sionsofsub-sect i
on(3).
(
5)Ar e gi
s ter
edpe rsons hal
lbee ntit
ledtot ake,inhi sele ctr
oniccredi
tledge r
,
creditofv alueaddedt axande ntr
ytax ,i
fany,inre spectofi nput
sreceivedon
oraf tertheappointeddaybutthet axinr espectofwhichhasbe enpaidbyt he
suppl i
e rundertheex i
sti
nglaw,subjecttothec ondit
iont hatt hei
nvoiceorany
othe rtaxpay i
ngdoc ume ntoft
hes amewasr ecordedint hebook sofac count
ofs uchpe r
sonwithi
nape r
iodofthir
tyday sfr
om theappoi ntedday:

Provi
dedt
hatt
heper
iodoft hi
rt
ydaysmay,onsuf fi
cientcausebeingshown,be
ext
endedbyt
heCommi
ssionerf
orafur
therper
iodnotexceedingt
hir
tydays:

Provi
ded f
urt
hert
hatthesaidregi
ster
ed per
son shal
lfur
nish astat
ement,in such
mannerasmaybeprescri
bed,i
nrespectofcr
edi
tthathasbeentakenunderthi
ssub-
secti
on.

(
6)Aregi
ster
edpe rson,whowase it
herpay ingt axataf i
xedrateorpay i
ngaf i
xed
amounti
nl i
euoft hetaxpay ableunde rthee xi
sti
nglaws hal
lbee nt
it
ledtotake,
i
nhiselect
roniccredi
tledge r,cr
editofv alueadde dtaxinrespectofinput
she l
d
i
nstockandi nputscont ai
ne dins emi-fi
nis hedorfini
shedgoodshe ldins t
ock
ont
heappoi nt
e ddays ubjecttothefollowi ngc ondi
ti
ons,namely:
––

(
i)suchinputsorgoodsar
eusedori
ntendedt
obeusedf
ormaki
ngt
axabl
e
suppl
iesundert
hisAct
;

(
ii
)thesai
dregi
ster
edper
soni
snotpayi
ngt
axundersect
ion10;

(i
ii
)thesai
dregi
ster
edper
soni
sel
igi
blef
ori
nputt
axcr
edi
tonsuchi
nput
sunder
t
hisAct;

(
iv)t
hesaidregi
ster
edpersoni
sinpossessi
onofi nvoi
ceorotherpr
escri
bed
documentsevi
denci
ngpaymentoft
axundert
heexist
inglaw inr
espectof i
nputs;
and

(
v)suchinvoi
cesorotherprescr
ibeddocumentswerei
ssuednotear
li
ert
han
t
wel
vemonthsimmedi
atel
yprecedi
ngtheappoi
ntedday.

(7)Theamountofc reditunde rsub-s ect

ions( 3),(
4)and( 6)s hallbec alcul
ated
ins uc hmanne rasmaybepr es cri
bed.
141. (
1) Whe reanyi nputsr ecei
v edatapl aceofbusi nesshadbeendespat ched
ass uc hordespat chedafterbe i
ngpar t
iall
ypr oc essedtoaj ob-
wor kerfor
furt herpr ocessing,t est
ing,r epair
,r econditioni
ng oranyot he rpurpos ein
ac c ordanc ewiththepr ovisi
onsofe xi
sti
ngl awpr iortotheappoi nt
eddayand
s uc hinput sarereturnedt othesai dplaceonoraf tertheappoi ntedday ,notax
s hal lbepay ableifsuc hinputs, af
terc ompl eti
onoft hejob-wor korot herwise,
ar er eturnedtothesai dplacewi thins i
xmont hsf rom theappoi ntedday :
Provide dt hatthepe ri
odofs i
xmont hsmay ,ons uffici
entcaus ebe ings hown,
beex t
e nde dbyt heCommi s si
onerforaf ur
therpe riodnote xceedingt womont hs:

Provi
dedfurt
herthati
fsuchinput
sarenotr
etur
nedwit
hintheper
iodspecif
ied
i
nt hiss ub-
sect
ion,the i
nputtax cr
edi
tshal
lbe li
abl
et o be recover
edi n
accor
dancewi
tht
hepr
ovi
sionsofcl
ause(
a)ofsub-
sect
ion(
8)ofsect
ion142.

(
2)Whe re any s emi -
fi
nished goods had be en de spatched f rom t he
placeof
busi
nesstoanyot herpremisesf orc ar
ryi
ngoutc ertai
nmanuf act
uri
ng
processesin accordance wit
ht he pr ovisi
ons ofe xi
sti
ng law pr i
ort ot he
appoint
eddayands uchgoods( hereaf
te ri
nt hi
ss ub-
sect
ionr efer
redtoas“ the
saidgoods”
)arere t
urnedtothes aidpl
ac eonoraf tert
heappoi ntedday ,
not ax
shallbepayabl
eifthes aidgoods ,aft
e runde r
goingmanuf acturi
ngpr ocesses
orot her
wise,arer etur
ne dtot he s aidpl
ac e wit
hins i
x mont hs from t he
appoint
edday:

Pr
ovidedt
hattheper
iodofsi
xmonthsmay ,onsuf
fi
cientcausebei
ngshown,
beext
endedbytheCommissi
oner
foraf
urt
herperi
odnotexceedi
ngtwomonths:

Providedf
urt
herthati
fthes ai
dgoodsarenotret
urnedwit
hinaperi
ods pecif
ied
i
nt hiss ub-
secti
on,the inputtax cr
edi
ts hal
lbe liabl
et o be r
e cover
edi n
accordancewit
htheprovi
sionsofcl
ause(a)ofsub-
secti
on(8)ofsect
ion142:

Provi
dedalsothatthepe r
s ondespatchingthegoodsmay ,i
naccor
dancewith
t
hepr ovi
sionsoftheexist
inglaw,tr
ansferthes ai
dgoodst ot
hepremisesofany
r
egister
edpe rsonforthepur poseofs upplyi
ngtheref
rom onpaymentoftaxin
I
ndiaorwithoutpayme ntoftaxforexportswithi
ntheperi
odspeci
fi
edinthi
ssub-
sect
ion.

(
3)Whe r
eanygoodshad be en despat
chedf rom t heplaceof
bus i
ne sswi thout
payme ntoft axforcarr
ying outtestsoranyot herprocess,to anyot her
premises,whe t
herregi
ster
e d ornot,in accordancewi t
ht hepr ovisi
onsof
exi
sti
ngl aw pri
ortotheappoi nt
eddayands uchgoods ,ar
er eturnedt ot he
sai
dplaceof
bus i
nessonoraf tertheappoint
e dday ,notaxshallbepay ableif
thesaidgoods ,af
terundergoi
ngt est
soranyot he rpr
ocess,arer etur
ne dt o
suchplacewithinsi
xmonthsf r
om theappointedday :

Pr
ovidedt
hattheper
iodofsi
xmonthsmay ,onsuffi
cientcausebei
ngshown,
beext
endedbytheCommissi
onerf
orafur
therper
iodnotex ceedi
ngt
womonths:

Providedfur
thert
hati fthes ai
d goodsar enotr etur
ned wi
thinthepe ri
od
specif
iedint
hissub-
se ct
ion,t
heinputtaxc r
edi
ts hal
lbel i
abl
etober ecover
edin
accordancewit
htheprovisi
onsofclause(a)ofsub-sect
ion(8)ofsect
ion142:

Provi
dedalsot hatthepersondespatchingthegoodsmay ,i
nac cordancewit
h
theprovisi
onsoft heexi
sti
nglaw,t r
ansferthes ai
dgoodsfrom thes aidother
premisesonpay me ntoftaxinIndi
aorwi thoutpaymentoft
axf orexportswi
thi
n
theperi
ods peci
fi
e dinthi
ssub-sect
ion.
(
4)Thet axunde rs ub-
s ect
ions(1),(2)and( 3)shallnotbepay abl
e,onlyift
he
personde spatchingthegoodsandt hejob-workerdecl
aret hede t
ail
softhe
i
nput sorgoodshe l
dins tockbythejob-
wor keronbehalfofthes ai
dpe r
sonon
theappointeddayi ns uc hfor
m andmanne randwi thi
ns ucht i
measmaybe
prescri
bed.

142.( 1)
Whe r eanygoodsonwhi c htax,i
fany ,hadbe e npaidunde rtheexi st
ing
law atthet meofsal
i et her
e of,notbe i
nge arl
ierthans i
xmont hspriortot he
appoi nt
edday ,areret
urnedt oanypl aceofbus inessonoraf tert
heappoi nted
day ,
ther egi
steredpersons hallbeeligi
bleforrefundoft hetaxpai dunde rthe
exist
ing law whe res uch goods ar er eturned by a pe rson,othert han a
register
edpe rson,t
ot hesaidpl aceofbus inesswi t
hinape riodofs i
xmont hs
from theappointeddayands uchgoodsar eidenti
fiabl
et othes ati
sfact
ionof
thepr operoff
icer:

Provi
dedt
hati
fthesai
dgoodsar
eretur
nedbyar
egi
ster
edper
son,
ther
etur
nof
suchgoodsshal
lbedeemedt
obeas uppl
y.

(2)(a)whe re,
inpur suanc eofac ontractenter
edi ntopr i
ort ot heappoi nt edday,the
pric eofanygoodsi sre vi
sedupwar dsonoraf tert heappoi nt edday ,the
regi stered pe rson who had s olds uch goodss halli
ss uet ot her eci
pienta
suppl eme nt
ar yi nv oiceorde bitnot e,contai
nings uc hpar ticularsasmaybe
pre sc r
ibed,wi thint hir
tyday sofs uchpricerevisionandf ort hepur pos esoft hi
s
Ac t,s uchs uppl e me ntaryinvoiceorde bitnot es hallbede e me dt ohav ebe en
i
s s uedi nres pec tofanout wards upplymadeunde rthisAc t
;
(b)whe r
e,inpur s uanc eofac ontractenteredint opr i
ort ot heappoi ntedday ,
thepr iceofanygoodsi sr evi
se ddownwar dsonoraf tert heappoi nte dday,the
re gisteredpe r
s onwhohadsol dsuchgoodsmayi ssuet other ec i
pientac redi
t
not e ,containings uc hpar t
icul
ar sasmaybepr es cr
ibe d,wi t
hint hirtydaysof
s uc hpr i
cer e visionandf orthepur posesoft hisAc ts uc hc r
e ditnot eshallbe
de e me dtohav ebe enissuedinr espectofanout war ds upplymadeunde rt hi
s
Ac t:
Pr ov i
de dthatt her egist
eredpe rsons hal
lbeallowe dtor educ ehi staxl i
abil
it
yon
accountofi s sueoft hec reditnoteonl yifther ecipi
e ntoft hec reditnotehas
reduc e dhisinputt axc r
editcorrespondingtos uchr educ ti
onoft axliabili
ty.

(
3)Eve r
yc l
aimforref
undf il
edbyanype rsonbe fore,onoraf t
e rtheappoi
ntedday
forrefundofanyamountofi nputtaxc r
edit,tax,i
nterestoranyot heramount
paid underthee xist
ing law,shallbedi spos ed ofin ac cordancewiththe
provisi
onsofe xi
sti
ngl awandanyamounte ve nt
uall
yac cruingtohims hal
lbe
refundedtohiminc ashinac cor
dancewiththepr ovisi
onsoft hesai
dlaw:

Provi
dedthatwher
eanyc l
aimforr
ef heamountofi
undoft nputt
axcr
edi
tis
f
ullyorpar
ti
all
yrej
ect
ed,
theamountsorej
ect
edshal
ll
apse:

Provi
dedfurt
hert
hatnor ef
undshal
lbeal
l
owedofanyamountofinputt
ax
credi
twherethebal
anceofthesai
damountasont
heappoi
nteddayhasbeen
carri
edfor
wardundert
hisAct
.
(
4)Everyclaimforrefundfi
ledaftert
heappoi
nteddayforrefundofanyt axpai
d
underthee xi
sti
ngl aw i
nr espectofthegoodsexpor
tedbe foreoraf t
ert
he
appoint
e dday,shallbedisposedofinaccor
dancewit
ht hepr ovi
sionsoft
he
exi
sti
ngl aw:

Provide dthatwhe reanyc l

aimforrefundofi nputtaxcredi
tisful
lyorparti
all
y
r
e j
ected, t
heamounts or eject
edshalll
aps e:
Provide dfurtherthatnor ef
unds hal
lbeal l
owedofanyamountofi nputtax
credi
twhe rethebal anc eofthes ai
damountasont heappoint
eddayhasbe en
carri
edf orwardunde rthisAc t
.
(
5) Notwithstandingany thingtothecontrarycontainedinthi
sAc t
,anyamountof
i
nputt axc redi
trevers edpri
ortotheappoi nteddays hal
lnotbeadmis si
bleas
i
nputt axc r
editunde rthisAct
.

(
6)(
a)e ver
ypr oc eedingofappe al
,revi
sion, r
evieworrefer
encer el
ati
ngt oaclai
m
f
orinputtaxc r
editini
ti
atedwhe t
herbe fore,onoraftert
heappoi nt
eddayunde r
t
hee xi
stinglaw s hallbedisposedofi nac cordancewiththepr ovi
sionsofthe
exi
sti
nglaw, andanyamountofc reditfoundt obeadmi ssi
bletothec l
aimant
shal
lber ef
unde dt ohi minc ashi nac cordancewiththepr ovisi
onsoft he
exi
sti
ngl aw,andt heamountr ej
ected,ifany ,shal
lnotbeadmi ssi
bleasinput
t
axc r
editunde rthisAc t
:

Prov i
de dt hatnor e funds hallbeal lowe dofanyamountofi nputt axcr e ditwhe r
e
thebal anc eoft hes ai damountasont heappoi nteddayhasbe enc arrie dforwar d
unde rthisAc t;
(b)e verypr oc eedingofappe al
, revision, rev i
eworr eferenc erelatingt or ecov er
y
ofi nputt axcr e di
ti ni
tiatedwhe the rbe fore ,onoraf tert heappoi nte dday
unde rtheexi stingl aws hal lbedi spos edofi nac cordanc ewi tht hepr ov i
sions
oft heexi sti
ngl aw,andi fanyamountofc re ditbe come sre cov e rableasa
res ultofs uchappe ,r
al evisi on,r eview orr ef erenc e,thes ames hal l
,unless
recover edundert heexi sti
ngl aw, ber e cov eredasanar rearoft axunde rt hi
s
Ac tandt heamounts or ecov e r
e ds hall notbeadmi ssibleasi nputt axc redit
unde rthisAc t.
(7)(a)e v erypr oc eedi ngofappe al,re vi
s i
on,r eview orr eferencer elatingt oany
outputt axliabili
tyi nitiatedwhe the rbe fore ,onoraf t
e rtheappoi nte ddayunde r
thee x i
s ti
ngl aw, shallbedi spos edofi nac cordanc ewi ththepr ov isionsoft he
exis t
ingl aw,andi fanyamountbe come sr e c ove r
abl easar es ultofs uch
appe al,r evi
s i
on, re vieworr eferenc e,thes ames hall,
unle ssr ecove redunde rthe
exis t
ingl aw, ber e cov eredasanar rearoft axunde rthisAc tandt heamounts o
recov ere ds hallnotbeadmi ssibleasi nputt axc re di
tunde rthisAc t.
(b)e verypr oc ee dingofappe al ,revision,r eview orr eferencer e latingt oany
out putt axliabili
tyi ni
tiatedwhe the rbe fore ,onoraf t
e rtheappoi nte ddayunde r
thee x i
s ti
ngl aw, shallbedi spos edofi nac cordanc ewi ththepr ov isionsoft he
existi
ngl aw,andanyamountf oundt obeadmi s si
blet ot hec laimants hal lbe
refunde dt ohi mi nc as hinac c ordanc ewi tht hepr ov i
sionsoft hee xistingl aw
 andtheamountr
eject
ed,i
fany,shal
lnotbeadmi
ssi
bleasi
nputt
axcr
edi
t
undert
hisAct
.
(
8)(a)whe r
ei n pur suanc e ofan as s essme ntoradj udicat
ion pr oceedi
ngs
i
ns ti
tut
ed,whe the rbe f
or e,onoraf tertheappoi nteddayunde rtheex ist
inglaw,
anyamountoft ax ,interest,fineorpe nal
tybe comesr ecoverabl
ef r
om t he
person,thes ames hall,
unlessr ecovere dunde rtheexi
s ti
nglaw,ber ecovered
asanar r
earoft axunde rt hisActandt heamounts or ecovereds hallnotbe
admi ssi
bleasinputt axc reditunderthisAc t
;
(b)wherei n pur suanc e of an as se ssment or adjudicat
ion pr oceedi
ngs
insti
tut
ed, whethe rbe fore,onoraf tert heappoi nt
eddayunde rtheexi st
inglaw,
anyamountoft ax ,int
e r
es t,fi
neorpe naltybe comesrefundabletothet axable
pe r
son,thes ames hallber efundedt ohi minc ashunde rthesaidlaw, andt he
amountr
eject
ed,i
fany,shal
lnotbeadmi
ssi
bleasi
nputt
axcr
edi
tundert
his
Act
.

(
9)(a)whe r eanyr eturn,f urnis hedunde rt hee xi
sti
ngl aw,i sr e vi
sedaf tert he
appoint e ddayandi f
,pur s uantt os uchr evisi
on,anyamounti sfoundt obe
recove rableoranyamountofi nputtaxc r
editisfoundt obei nadmi ssible,the
sames hall,
unlessr ec overe dunde rthee xist
inglaw, ber ec ov eredasanar r ear
oft axunde rthi
sAc tandt heamounts or ecov er
eds hallnotbeadmi ss i
bleas
i
nputt axc redi
tunde rt hi
sAc t;
(b)whe r
eanyr et
ur n,f urnishe d undert heexi st
ing law,i sr evised aftert he
appoi nteddaybutwi thint hetimel i
mi tspecifi
edf ors uchr evi
sionunde rthe
existi
ngl aw andi f,pur suantt os uchr evisi
on,anyamounti sfoundt obe
refundabl eori nputt axcr editisf oundt obeadmi ss ibletoanyt axabl e
per son,thes ames hallber efundedt ohi mi nc as hunde rthee xi
stingl aw,
andt heamountr ejected, i
fany ,shallnotbeadmi ssi easi
bl nputtaxcr edit
unde rthi
sAc t
.
(
10) Sav easot herwis epr ovide dint hi
sChapt er,t
hegoodsors e r
vicesorbot h
supplie donoraf t
e rtheappoi nt
eddayi npur suanceofac ontractentere dint o
priortot heappointe ddays hallbeliabl
et otaxunde rt hepr ov i
sionsoft hisAc t .

(
11) ( a)not wi t
hs tanding any thing c ontai nedins ec t
ion 12,no t ax shallbe
payabl eongoodsunde rthisAc tt ot hee xt
entt hetaxwasl evi
ableont hes aid
goodsunde rthe< Nameoft heSt atek erala>ValueAdde dTaxAc t,-
--;
(b)notwithstandinganyt hingcont ainedi nsect i
on13,not axshallbepayabl eon
servi
cesundert hi
sActt ot heext entthet axwasl eviableont hesaidservices
underChapt erVoft heFinanceAct ,1994;
(c)wher et ax was pai d on any suppl y,bot h undert he <Name oft he State
Kerala>ValueAddedTaxAct ,-
--andunderChapt erVoft heFinanceAct,1994,
taxshallbel eviableundert hisActandt hetaxablepersonshal lbeentit
ledt
ot ake
creditofvalueaddedt axorser vicetaxpai dundertheexi sti
nglawt otheextentof
suppliesmadeaf tertheappoi nteddayandsuchcr editshallbecalculat
edinsuch
mannerasmaybepr escri
bed.
(
12) Whe r
eanygoodss entonappr
ovalbasi
s,notearl
ierthansixmonthsbef
ore
theappoint
edday,ar
er ej
ect
edornotapprovedbyt hebuy erandretur
nedto
thesel
leronoraft
ert
heappoint
edday,notaxshallbepay abl
ether
eonifsuch
goodsareretur
nedwi
thinsi
xmonthsf
rom theappointedday:

Provi
dedthatt
hes ai
dper
iodofsixmonthsmay ,
ons uf
fi
cientcausebei
ngshown,
beextendedbytheCommissi
onerforaf
urtherper
iodnotexceedi
ngtwomonths:

Provi
dedf
urt
he rt
hatthetaxs hal
lbepayabl
ebyt heper
sonret
urni
ngt hegoodsif
suchgoodsareliabl
et ot axunderthi
sAc t,andareret
urnedaftertheperi
od
speci
fi
edi
nthissub-sect
ion:

Provi
de dalsothattaxshal
lbepayabl
ebyt heper
sonwhohassentthegoodson
approvalbasisifsuchgoodsar
eli
abletotaxundert
hisAct
,andar
enotretur
ned
withi
nthepe ri
odspe ci
fi
edi
nthi
ssub-sect
ion.
(
13) Whe r
eas uppl
ierhasmadeanys aleofgoodsi nrespectofwhi chtaxwas
requi
redtobede ductedatsourceunderthe< Nameoft heSt at
e>ValueAdde d
Tax,-
---andhasal soissuedaninvoi
c eforthesamebe for
et heappointedday ,
node ducti
onoft axats our
ceunders ecti
on51s hallbemadebyt hede duct
or
underthes ai
ds ecti
onwhe repaymentt othesaidsuppli
erismadeonoraf t
er
theappointedday.

(
14) Whe r
eanygoodsorc apital goodsbe longingt othepr i
nc ipalarelyi
ngatt he
premis esoft heage ntont heappoi nt edday ,theage nts hal lbee nti
tl
edt otak e
credi
toft het axpai dons uc hgoodsorc apitalgoodss ubje cttoful
fil
me ntof
thefollowingc ondi t
ions:
(i) t heagenti sar egist
eredt axablepersonundert hisAct ;
(ii
) bot hthepr i
ncipalandt heagentdecl ar
et hedetail
sofst ockofgoodsorcapi tal
goodsl yi ngwi thsuchagentont hedayi mmedi atelyprecedi ngthe
appoint eddayi nsuchf orm andmannerandwi t
hinsucht imeasmaybe
prescribedi nt hisbehalf;
(ii
i)t heinvoi cesf orsuchgoodsorcapi t
algoodshadbeeni ssuednotear l
ierthan
twelvemont hsimmedi atelyprecedingt
heappoi ntedday;and
(iv) theprinci palhasei t
herr eversedornotavai l
edoft heinputt axcrediti
nrespect
ofsuch, -
a) g
( oods;or
b) c
( api talgoodsor ,havingavailedofsuchcr edit,hasr eversedthesaidcredit
,
t
ot heext entavail
edofbyhi m.

Expl
anat
ion.
-Forthepur
posesofthi
sChapter
,theexpr
ession“capi
talgoods”
shal
lhave the same meani
ng as assi
gned toitint he <Name oft he
Stat
eKer
ala>Val
ueAddedTax,--
--
.

CHAPTER XXI
MISCELLANEOUS
 143.(1)A r
egist
eredperson(hereaf
terinthi
ssecti
onr ef
erredtoast he“ pri
ncipal
”)
may,
underint
imati
onandsubj ecttosuchcondit
ionsasmaybepr escr
ibed,send
anyi
nputsorcapit
algoods,wi
thoutpaymentoft
ax,toajob-workerf
orjob-workand
fr
om t
heresubsequent
lysendtoanotherj
ob-
workerandli
kewise,andshall,
––

(a)bri
ngbacki nputs,aft
ercompleti
onofjob-workorother
wise,orcapit
algoods,
otherthanmouldsanddi es,
ji
gsandfixt
ures,
ortools,wi
thi
noneyearandt hr
eeyears,
respecti
vel
y,oftheirbeingsentout
,toanyofhispl aceofbusi
ness,wit
houtpayment
oftax;

(b)suppl
ysuchinputs,aft
ercompl
et i
onofj ob-workorot
herwise,
orcapit
algoods,
otherthanmouldsanddi es,j
igsandf
ixtures,ortool
s,wi
thi
noneyearandt hr
eeyears,
respecti
vel
y,ofthei
rbeingsentoutf rom t heplaceofbusinessofajob-workeron
paymentoft axwit
hinIndia,orwit
horwi t
houtpaymentoft axforexpor
t,asthecase
maybe:

Provi
dedt hatthepr
incipalshal
lnotsuppl
yt hegoodsf r
om thepl
aceofbusiness
ofaj ob-workerinaccor dancewiththeprovisionsofthi
sclause unl
essthesai d
pri
ncipaldeclarestheplaceofbusinessofthej obworkerashisaddi
ti
onalpl
aceof
businessexceptinacase-

(
i)wher
ethej
ob-
wor
keri
sregi
ster
edundersect
ion25;or

(i
i)wher
ethepr
incipalisengagedi
nthesuppl
yofsuchgoodsasmaybe
not
if
iedbyt
heCommissioner
.

(
2)Theresponsi
bil
i
tyf
orkeepi
ngpr
operaccount
sfort
hei
nput
sorcapi
talgoods
shal
ll
iewitht
hepri
nci
pal
.

(
3)Wheretheinputss entforjob-workar enotreceivedbac kbythepr i
ncipalaft
er
complet
ion ofjob-workorot herwisei n accordancewi ththepr ovi
s i
onsof
cl
ause(a)ofs ub-sect
ion(1)orar enots uppliedfrom theplaceofbus inessof
t
hejob-workerinac cordancewi ththepr ovisi
onsofc lause(b)ofs ub-sect
ion
(
1)withinape ri
odofoney earofthe i
rbe i
ngs entout,itshal
lbede eme dthat
suchinput
shadbe ens uppliedbyt hepr i
ncipaltothej obworkeront heday
whenthesaidinputswe res entout.

(
4)Whe r
et hec apit
al goods,otherthanmouldsanddi es,j
igsandf i
xtures,ortools,
sentforjob-wor kar enotreceivedbackbyt heprinci
palinac cordancewi t
ht he
provi
sionsofc laus e(a)ofs ub-
secti
on(1)orar enots uppli
edfrom theplac eof
busi
ne ssoft hej ob-workerinac cor
dancewi ththepr ovi
sionsofc lause(b)of
sub-secti
on( 1)wi thi
nape r
iodofthreeyearsofthe i
rbe i
ngs entout,itshallbe
deeme dt hats uchc api
talgoodshadbe ens uppliedbyt hepr i
ncipaltot he
j
obwor keront hedaywhe nthesaidcapi
talgoodswe r
es entout.
(
5)Notwit
hstandi
nganythingcont
ainedinsub-sect
ions(1)and(2),
anywas t
eand
scrapgenerat
edduri
ngt hej
ob-workmaybes uppliedbythejob-
workerdi
rect
ly
fr
om hisplaceofbusinessonpayme ntoftax,i
fs uchj
ob-workeri
sregi
ster
ed,
orbytheprinci
pal
,i
fthejob-
workerisnotregi
stered.

Expl
anat
ion.-Fort
hepur
posesofj
ob-
wor
k,i
nputi
ncl
udesi
nter
medi
ategoodsar
isi
ng
f
rom anytr
eat
mentorprocesscar
ri
edoutont
hei
nput
sbyt
hepr
inci
palort
hej
ob-
worker
.
144.Wher
eanydocument
-
(
i) isproducedbyanyper
sonundert
hisActorany
ot
herl
awf
ort
het
imebei
ngi
nfor
ce;or

(
ii
) hasbeensei
zedfrom t
hecust
odyorcontr
olof
anyper
sonundert
hisActoranyot
herl
awfortheti
mebei
nginfor
ce;or

(
ii
i) hasbeenrecei
vedfrom anypl
aceout
sideI
ndiain
t
hecour
seofanypr
oceedi
ngsundert
hisActoranyotherl
awfort
hetimebeing
i
nfor
ce,

andsuchdocumenti
st enderedbytheprosecut
ioni
nevidenceagai
nsthi
m orany
otherper
sonwhoi
str
iedjoint
lywit
hhim,t
hecourtshal
l-
-

(
a) unl
esst
he cont
rar
yis pr
oved bysuch per
son,
pr
esume—

(
i)t
het
rut
hoft
hecont
ent
sofsuchdocument
;

(
i)t
i hatt
hesi
gnat
ureandever
yot
herpar
tofsuchdocumentwhi
chpur
por
tst
obei
nthe
handwri
ti
ngofanypar t
icularper
sonorwhi cht
hecourtmayreasonabl
yassume
tohavebeensignedby,ort obeinthehandwri
ti
ngof
,anyparti
cul
arperson,isin
thatper
son’shandwri
ti
ng,andi nthecaseofadocumentexecutedorat test
ed,
thati
twasexecutedorattestedbythepersonbywhom itpur
port
stohavebeen
soexecutedorat
test
ed;

(
b) admitt
hedocumentinevi
dencenotwit
hstandi
ng
t
hati
tisnotdul
yst
amped,
ifsuchdocumenti
sother
wiseadmissi
blei
nevidence.
145.(1)Not
wit
hst
andi
nganyt
hingcont
ainedi
nanyot
herl
aw f
ort
het
imebei
ngi
n
f
orce,
—

(a)amicr
ofil
m ofa documentorthe repr
oducti
on oft
he i
mage ori
mages
embodi
edi
nsuchmicr
ofi
lm(whet
herenl
argedornot)
;or

(
b)af
acsi
mil
ecopyofadocument
;or

(c)astat
ementcont
ained in a documentand i
ncl
uded i
n a pri
nted mat
eri
al
pr
oducedbyacomput
er,
subjectt
osuchconditi
onsasmaybeprescr
ibed;or
 (
d)anyi
nfor
mati
onstoredel
ect
roni
cal
lyi
nanydevi
ceormedi
a,i
ncl
udi
nganyhar
d
copi
esmadeofsuchinf
ormati
on,

shallbe deemed t o be a documentf orthe pur

poses oft hi
s Actand t he rules
madet hereunderandshallbeadmi ssi
bleinanyproceedi
ngsthereunder
,withoutf
urther
prooforpr oduct
ionoftheoriginal
,asevidenceofanycontent
soft heori
ginalorofany
factstat
edt her
einofwhichdirectevi
dencewouldbeadmissibl
e.

(
2)Inanypr
oceedi
ngsundert
hisActandortherul
esmadet
he r
eunder
,whereiti
s
desi
redt
ogiveast
atementi
ne vi
dencebyvi
rt
ueofthi
ssect
ion,
acerti
fi
cat
e,—

(
a)identi
fyi
ngthedocumentcont
aini
ngt
hest
atementanddescr
ibi
ngt
hemanner
i
nwhichitwasproduced;

(b)givi
ng such par
ti
cular
s ofany devi
ce invol
ved i
nthe product
ion oft
hat
documentasmaybeappr opri
atef
orthepurposeofshowingt
hatthedocumentwas
producedbyacomput er
,

shallbeevi
denceofanymat t
erstat
edi
nthecer
ti
ficateandfort
hepurposesoft
hissub-
secti
onitshallbesuf
ficientforamatt
ert
obest atedtothebestoft
heknowledgeand
beli
efofthepersonst
atingit.

146.TheGover nmentmay, ont

herecommendati
onsoftheCouncil
,noti
fytheCommon
GoodsandSer vi
cesTaxElect
roni
cPort
alf
orfaci
li
tat
ingr
egist
rati
on,paymentoft
ax,
furni
shingofret
urns,comput
ati
onandsett
lementofint
egrat
edt ax,el
ectr
oni
cway
bil
landf orcarr
yingoutsuchotherf
uncti
onsandf orsuchpur posesasmaybe
prescri
bed.

147.TheGover nmentmay,ont her ecommendat ionsoftheCounci

l,not
ifycert
ain
suppli
esofgoodsas“ deemedexports”,wheregoodssuppl
ieddonotleaveIndi
a,
andpaymentf orsuchsuppli
esisreceivedeitherinI
ndi
anrupeesorinconver
ti
ble
for
eignexchange,i
fsuchgoodsaremanuf act
uredinI
ndi
a.

148.TheGover nmentmay,ont herecommendat i

onsoft heCouncil,andsubjectto
suchcondi tionsandsafeguardsasmaybepr escri
bed,notif
ycer t
aincl
assesof
regi
steredpersons,and t
hespecialprocedur
est o bef ol
lowed bysuch persons
i
ncludingthosewi t
hregar
dt oregi
str
ati
on,fur
nishi
ngofr et
urn,paymentoftaxand
administrat
ionofsuchpersons.

149.( 1)Ever
yregister
edpersonmaybeassi
gnedagoodsandservi
cest
axcompli
ance
rati
ng score by the Gover
nmentbased on hi
srecor
d ofcompli
ance wi
ththe
provisi
onsofthisAct.

(
2)Thegoodsandservi
cestaxcompl
i
ancerat
ingscor
emaybedet
ermi
nedont
he
basi
sofsuchpar
ame ter
sasmaybeprescr
ibed.
(
3)The goods and ser
vicestaxcompli
ancerati
ng scor
e maybe updat
ed at
peri
odici
nter
val
sandi nti
matedtot
heregi
ster
edpe r
sonandal
sopl
acedint
he
publi
cdomaininsuchmanne rasmaybeprescri
bed.

150.(1)Anyper
son,
being—
(
a)ataxabl
eper
son;or

(
b)al
ocalaut
hor
it
yorot
herpubl
icbodyorassoci
ati
on;or

(c)anyauthori
tyoft heSt
ateGovernmentresponsi
bleforthecol
lect
ionofval
ue
addedt axorsal
est axorStat
eexcisedut
yoranaut hori
tyoftheCent
ralGover
nment
responsibl
efort
hecol l
ecti
onofexci
sedutyorcustomsduty;or

(
d)anincomet
axaut
hor
it
yappoi
ntedundert
hepr
ovi
sionsoft
heI
ncome-
taxAct
,
1961;or

(
e)abankingcompanywithi
nthemeani
ngofcl
ause(
a)ofsect
ion45A oft
he
ReserveBankofI
ndi
aAct,
1934;or

(
f)aStateElectr
ici
tyBoardoranelect
ri
citydist
ri
but
ionortr
ansmissi
onli
censee
undertheEl
ectri
cit
yAct,2003,oranyot
herenti
tyentr
ust
edwit
hsuchfuncti
onsbythe
Centr
alGovernmentortheStat
eGovernment;or

(g)theRegi
str
arorSub-
Regi
str
arappoi
ntedundersect
ion6oft
heRegi
str
ati
on
Act
,1908;or

(
h)aRegi
str
arwi
thi
nthemeani
ngoft
heCompani
esAct
,2013;or

(
i)ther
egist
eri
ngaut
hor
it
yempower
edt
oregi
stermot
orvehi
clesundert
heMot
or
Vehicl
esAct,
1988;or

(j
)the Coll
ect
orref
err
ed toi
n cl
ause (
c)ofsection 3 ofthe Ri
ghtto Fai
r
Compensati
onandTr
anspar
encyi
nLandAcqui
sit
ion,
Rehabi
li
tat
ionandReset
tl
ement
Act
,2013;or

(
k)therecogni
sedstockexchanger ef
err
edt
oincl
ause(
f)ofsect
ion2oft
he
Securi
ti
esContr
act
s(Regulat
ion)Act
,1956;or

(
l)adeposit
oryref
err
edt
oincl
ause(
e)ofsub-
sect
ion(
1)ofsect
ion2oft
he
Deposi
tor
iesAct,
1996;or

(
m)anof fi
ceroftheReser
veBankofI
ndi
aasconst
it
utedundersect
ion3oft
he
ReserveBankofIndi
aAct,
1934;or

(n)the Goods and Ser

vices Tax Net
wor
k,a company r
egi
ster
ed undert
he
CompaniesAct
,2013;or

(
o)apersontowhom aUni
queI
dent
it
yNumberhasbeengr
ant
edundersub-
sect
ion(
9)ofsect
ion25;
or
 (p)anyot
herpersonasmaybespeci
fi
ed,
ont
her
ecommendat
ionsoft
heCounci
l,
byt
heGovernment,

whoi sresponsibl
eformai nt
ainingrecordofr egistr
ationorstatementofaccountsorany
periodicr etur
nordocumentcont ai
ningdet ail
sofpaymentoft axandot herdetai
lsof
transactionofgoodsorser vicesorbot hort ransactionsrelat
edtoabankaccountor
consumpt ionofelectr
icit
yort ransactionofpur chase,saleorexchangeofgoodsor
proper t
yorr i
ghtori
nteresti
napr opertyunderanyl awf ortheti
mebei ngi nfor
ce,shal
l
furnishani nf
ormati
onreturnoft hesamei nr espectofsuchper i
ods,wit
hinsucht i
me,in
suchf orm andmannerandt osuchaut hori
tyoragencyasmaybepr escri
bed.

(
2)Whe r
et he Commi ssi
one r,oran of ficeraut horised by him i nt his be half,
consi
de rsthatt heinformat i
onf urni
s he dinthei nformati
onr eturni sde fecti
v e,
hemayi nti
mat et hedefe cttothepe rs onwhohasf ur
nisheds uc hinformat ion
ret
urnandgi vehi m anoppor t
unityofr e ct
if
yingt hede f
e ctwithinape riodof
thi
rt
yday sf r
om t hedateofs uchinti
mat ionorwi thinsuchfurtherpe riodwhi c h,
onanappl i
cationmadei nthisbe half,thes aidaut hori
tymayal low andi fthe
defectisnotr ecti
fiedwithinthes aidpe ri
odoft hirtydaysor ,
thef urtherpe r
iod
soall
owe d,t
hen, notwit
hs tandi
ngany thingc ontainedinanyot he rprov i
sionsof
thi
sAc t
,s uchi nformationr et
ur ns hallbet r
e atedasnotf urnis hedandt he
provi
sionsoft hisAc tshallapply.

(
3)Whe reape r
sonwhoi sr
equiredtofurnishinformati
onr et
urnhasnotf urni
shed
thesamewi thi
ntheti
mes pecif
iedins ub-
section(1)orsub-sect
ion(2),t
hes ai
d
authori
tymays er
veuponhim anot icerequir
ingfurni
shingofs uchinf
ormat i
on
ret
urnwi t
hinaperi
odnote xceedi
ngni net
yday sf
rom thedateofs er
viceofthe
noti
ceands uchpersonshallf
urnishtheinformati
onr et
urn.

151.(1)TheCommi ssi
onermay,i fheconsi
dersthatitisnecessar
ysot odo,by
not
if
icat
ion,di
rectt
hatst
atist
icsmaybecoll
ectedrel
ati
ngtoanymat t
erdeal
twi
th
byorinconnecti
onwitht
hisAct.

(
2)Upon s uch noti
fi
cat
ion bei
ng issued,the Commi ssi
oner,orany pe r
son
author
isedbyhi m inthisbehal
f,mayc al
lupont hec oncer
nedpersonsto
fur
nishs uchinformati
on orret
urns,
ins uchf or
m and manne ras maybe
prescr
ibed,rel
ati
ng to any mat
terinr espectofwhichs tati
sti
csi
st o be
col
lect
e d.

152.( 1)Noi nf
ormationofanyi ndi
vidualret
urnorpartthereofwi t
hrespecttoany
mat t
ergi venf orthepur posesofsect ion150orsection151shal l,withoutthe
previousconsenti nwrit
ingoftheconcernedper
sonorhisauthorisedr
epresentat
ive,
bepubl ishedinsuchmannersoast oenabl
esuchpar ti
cular
st obeidenti
fi
edas
refer
ringt oapar t
icul
arper sonandnosuchi nf
ormati
onshal lbeusedf orthe
purposeofanypr oceedi
ngsundert hisAct.
(
2)Exceptforthepurposesofpr
osecuti
onunderthisActoranyot herActf ort
hetime
bei
nginforce,nopersonwhoisnotengagedinthecol
lect
ionofst at
isti
csunderthi
s
Actorcompi l
ati
onorcomputeri
sat
ionthereoff
orthepurposesoft hisAct,shal
lbe
per
mitt
edtoseeorhaveaccesstoanyi nf
ormati
onoranyindivi
dualreturnref
err
edto
i
nsecti
on151.

(
3)Not
hinginthi
ss e ct
ionshallappl
ytothepubl
icati
onofanyi nf
ormati
onr el
ati
ng
toaclassoftax ablepersonsorc l
assoftr
ans act
ions,i
fintheopinionofthe
Commi ssi
oner
,itisdesi
rableinthepubl
ici
nter
e stt
opublishsuchinformati
on.

153.Anyof fi
cernotbel
owt herankofAssist
antCommi ssi
onermay,havingr egardto
thenatur
eandcompl exi
tyoft
hecaseandt heinter
estofrevenue,
takeassistanceof
anyexpertatanystageofscruti
ny,i
nquir
y,invest
igati
onoranyot herproceedings
befor
ehim.

154.TheCommi ssioneroranofficeraut
horisedbyhim mayt
akesampl
esofgoods
fr
om thepossessi onofanytaxableperson,wher
eheconsi
dersi
tnecessar
y,and
provi
deareceiptforanysamplessotaken.

155.Whereanyper
soncl
aimsthatheiseli
gibl
eforinputt
axcr
edi
tundert
hisAct
,the
bur
denofpr
ovi
ngsuchcl
aim shal
lli
eonsuchperson.

156.Allpersonsdischar
gingfunct
ionsundert
hisActshal
lbedeemedt
obepubl
ic
ser
vantswithi
nthemeaningofsecti
on21oft
heIndi
anPenalCode.

157.( 1)Nosui t
,prosecutionorotherlegalproceedingsshallli
eagai nstthePresident,
StatePresident,Member s,of
ficersorotherempl oyeesoft heAppel l
ateTri
bunalor
anyot herpersonaut hori
sedbyt hesaidAppel l
ateTribunalforanythingwhi chisin
goodf ait
hdoneori ntendedtobedoneundert hi
sActort her ulesmadet her
eunder .
(
2) Nos ui
t,pr osecuti
onorot herl egalproc eedi
ngss halllieagai nstanyof fi
cer
appointedoraut hori
s edunde rthisAc tf
orany thingwhi chi sdoneori ntende dto
bedonei ngoodf aithunde rt
hi sAc tortherulesmadet he reunder.

158.( 1)Allpar
ticularscont ai
nedinanyst at
ementmade,r eturnfurnishedoraccount s
ordocument spr oducedi naccor dancewi t
ht hisAct,orinanyr ecordofevi dence
givenint hecour seofanypr oceedingsundert hi
sAct( ot
hert hanpr oceedings
beforeacr i
mi nalcour t
),orinanyr ecordofanypr oceedingsundert hi
sActshal l
,
saveaspr ovidedi nsub-secti
on( 3),notbedisclosed.
(
2) Not wit
hs t
andingany thingc ontaine dintheI ndianEv i
de nceAc t,1872,noc ourt
shall,sav e as ot her
wi se prov i
de di ns ub- sect
ion (3),r equire any of fi
cer
appointedoraut hor i
sedunde rthisAc ttopr oduc ebefor ei
tort ogivee vi
de nce
beforeitinres pec tofpar t
icul
ar sre f
erredtoins ub-section(1).

(
3)Not
hingcont
ainedi
nthi
ssect
ionshal
lappl
ytot
hedi
scl
osur
eof
,––

(
a)anypar t
icular
si nrespectofanystatement,retur
n,accounts,documents,
evi
dence,aff
idavitordeposit
ion,f
ort
hepurposeofanypr osecut
ionundertheIndi
an
PenalCodeort hePr event
ionofCorr
upti
onAct ,1988,oranyotherlaw f
orthetime
bei
nginforce;or
 (b)anypart
icular
stotheCentralGovernmentortheSt
ateGovernmentort
oany
per
sonacti
ngint heimpl
ementat
ionoft hi
sAct,fort
hepurposesofcar
ryi
ngoutt
he
obj
ectsoft
hisAct;or

(
c)anyparti
cular
swhensuchdiscl
osureisoccasionedbyt helawf
ulexer
cise
undert
hisActofanyprocessf
ort
heser
viceofanynot
iceorrecover
yofanydemand;
or

(d)any parti
cul
arstoa civi
lcourtin any sui
torpr oceedings,to which t
he
Gover nmentoranyauthori
tyunderthi
sActi saparty,whichr el
atestoanymat ter
ar
isingoutofanyproceedi
ngsunderthi
sActorunderanyotherlawf ortheti
mebeing
i
nf orceauthor
isi
nganysuchauthor
it
ytoexerci
seanypowerst hereunder;or

(e)anypar
ti
cul
arstoanyof
fi
cerappoi
ntedf
ort
hepur
poseofaudi
toft
axr
ecei
pts
orr
efundsoft
hetaxi
mposedbythi
sAct;or

(f
)anyparti
cul
arswheresuchparti
cul
arsarer el
evantfort
hepur posesofany
i
nquiryi
ntotheconductofanyof
fi
cerappoint
edorauthori
sedunderthisAct,t
oany
personorper
sonsappoint
edasaninqui
ryoffi
cerunderanylawforthetimebeingi
n
for
ce;or

(g)anysuchparti
cul
arstoanoffi
ceroft
heCentralGovernmentorofanySt
ate
Gover
nment ,asmaybenecessaryf
orthepurposeofenabli
ngthatGover
nmentto
l
evyorreal
iseanyt
axorduty;or

(
h)anypart
icul
arswhensuchdi scl
osureisoccasi
onedbyt
helawf
ulexer
cisebya
publ
icser
vantoranyot herst
atut
oryauthori
ty,ofhi
sorit
spower
sunderanyl awfor
thet
imebeingi
nf or
ce;or

(i
)anypar ti
cul
arsr el
evantt
oanyi nqui ryint
oachar geofmi sconducti
nconnect i
on
withanypr oceedi
ngsundert hi
sActagai nstapr acti
singadvocat e,
ataxpr act
it
ioner
,a
practi
singcostaccount ant,apract
isingchar t
eredaccount ant,apracti
singcompany
secret
ar ytotheauthor i
tyempoweredt ot akediscipl
inaryactionagainstthemember s
practi
sing the profession ofa legalpr act
it
ioner,
a costaccount ant
,a charter
ed
account antoracompanysecr etar
y,ast hecasemaybe;or

(j
)anyparti
cul
arstoanyagencyappointedforthepurposesofdat
aentryonany
automatedsystem orfort
hepur poseofoper at
ing,upgradi
ngormai nt
aini
ngany
automatedsystem wher
esuchagencyi scontr
actual
lyboundnottouseordi scl
ose
suchparti
cul
arsexceptf
ort
heaforesai
dpurposes;or

(
k)anysuchpart
icul
arstoanoff
iceroft
heGovernmentasmaybenecessar
yfor
t
hepur
posesofanyotherl
awfort
hetimebeingi
nfor
ce;and

(
l)anyinf
ormationr
elat
ingt
oanycl assoft
axabl
epersonsorcl
assoft
ransact
ions
f
orpubl i
cati
on,if
,intheopini
onoft heCommi ssi
oner
,itisdesi
rabl
einthepubl i
c
i
nterest
,topubl
ishsuchinf
ormati
on.
 159.( 1)I
ftheCommi ssioner,
oranyotheroff
icerauthorisedbyhimi nthisbehalf
,isof
theopiniont
hatiti snecessaryorexpedientint hepubl i
cinteresttopubli
sht he
nameofanyper son and anyot herpar t
icul
arsr elati
ng to anypr oceedi
ngsor
prosecuti
onunderthisActi nr
espectofsuchper son,itmaycauset obepublished
suchnameandpar t
icular
sinsuchmannerasi tthinksfit
.

(
2)Nopublicat
ionunde rthi
ss ecti
onshallbemadei nr el
ati
ontoanype nalt
y
i
mpos edunderthi
sAc tunti
ltheti
mef orpr
esenti
nganappealtot
heAppe l
l
ate
Aut
hori
ty unders ect
ion 107 has expi
red wi
thoutan appealhavi
ng been
pr
esentedortheappeal,i
fpresent
ed,
hasbe endi
sposedof.

Expl
anat
ion.
––I
nthecaseoff
ir
m,companyorot
herassoci
ati
onofper
sons,t
he
names oft he par
tner
s oft he fi
rm,director
s,managing agents,secr et
ari
es and
tr
easurersormanagersofthecompany,ort hemembersoftheassoci at
ion,asthecase
maybe, mayalsobepubl i
shedif
,intheopi
nionoftheCommissioner,oranyotherof
ficer
author
isedbyhimi nthi
sbehalf
,cir
cumstancesofthecasej
usti
fyit.

160.( 1) No assessment ,r e-assessment ,adj udicati

on,r evi
ew,r evi
sion,appeal,
rectif
icat
ion,notice,summonsorot herpr oceedi
ngsdone,accept ed,made,issued,
i
nitiated,orpur por t
ed to have been done,accept ed,made,i ssued,ini
ti
ated in
pursuanceofanyoft hepr ovisionsoft hisActshal lbei nval
idordeemedt obe
i
nval i
d mer el
y by r eason ofany mi st
ake,def ectoromi ssi
on ther
ein,ifsuch
assessment ,r e-assessment ,adj udicati
on,r evi
ew,r evisi
on,appeal,rect
if
icati
on,
notice,summonsorot herpr oceedi ngsar ei nsubst anceandef f
ectinconformity
withoraccor dingt ot hei ntents,pur posesandr equirementsoft hisActorany
existi
ngl aw.

(
2)Thes ervi
ceofanynot i
ce ,orderorc ommuni cat
ion shal
lnotbec all
edi n
questi
on,ifthenot i
ce,orderorc ommunicati
on,ast hec asemaybe ,has
al
readybe enac t
eduponbyt hepe rsontowhom i tisissue dorwheres uch
ser
vice has notbe encalledi n quest
ion atorint he e arl
ierpr
oceedings
comme nced,c onti
nued or final
ised pursuant t
o s uch not i
ce,order or
communi cat
ion.

161.Wi thoutprejudicet otheprovi si

onsofsect i
on160,andnot wit
hstandinganything
cont ainedinanyot herprovisionsoft hisAct ,anyaut hor
it
y,whohaspassedor
i
ssuedanydeci sionoror derornot iceorcer tif
icateoranyot herdocument ,may
rectifyanyer r
orwhi chisappar entonthefaceofr ecor
dinsuchdeci si
onororderor
noticeorcer ti
ficateoranyot herdocument ,eit
heroni tsownmot i
onorwher esuch
errori sbroughtt oi tsnoti
cebyanyof fi
cerappoi ntedunderthisActoranof fi
cer
appoi ntedundert heCent ralGoodsandSer vi
cesTaxActorbyt heaffect
edper son
withinaper iodoft hreemont hsf r
om thedat eofi ssueofsuchdeci si
onororderor
noticeorcer ti
ficateoranyot herdocument ,asthecasemaybe:

Provi
dedthatnosuchr
ectif
icat
ionshal
lbedoneafteraperi
odofsi
xmont hsf
rom t
he
dat
eofissueofsuchdeci
sionororderornot
iceorcer
tif
icat
eoranyot
herdocument
:

Pr
ovi
dedfurt
hert hatt
hesaidperi
odofsixmonthsshallnotapplyinsuchcases
wher
etherect
if
icat
ionispur
elyinthenat
ureofcor
rect
ionofacleri
calorari
thmet
ical
er
ror
,ar
isi
ngf
rom anyacci
dent
alsl
iporomi
ssi
on:

Provided al
so t
hatwhere such r
ect
ifi
cat
ion adver
sely af
fects any person,t
he
principl
es ofnatur
aljust
ice shal
lbe f
oll
owed by the aut
horit
y carryi
ng outsuch
recti
ficati
on.

162.Saveaspr ovi
dedinsecti
ons117and118,nocivi
lcourtshal
lhavejuri
sdi
cti
onto
dealwith ordeci
deanyquest i
on ar
isi
ng f
rom orrelat
ing t
o anyt
hing doneor
purpor
tedtobedoneunderthi
sAct.

163.Wher everacopyofanyor
derordocumentistobeprovi
dedtoanypersononan
appli
cati
onmadebyhi mforthatpur
pose,t
hereshal
lbepaidsuchfeeasmaybe
prescr
ibed.

164.(1)TheGovernmentmay,ontherecommendationsoft
heCounci
l,bynot
if
icat
ion,
makerul
esforcarr
yingoutt
heprovi
sionsoft
hisAct.

(
2)Withoutprej
udicet
ot hege ner
ali
tyoft heprovi
sionsofs ub-
sec t
ion(1)
,the
Gov er
nmentmaymak erulesforalloranyofthemat t
erswhichbyt hi
sActare
requi
redtobe,ormaybe,prescri
bedorinrespectofwhichprovi
sionsaret
obe
ormaybemadebyr ul
es.

(
3)Thepowe rt
omak erul
e sconfer
redbythi
ss ect
ionshal
lincludet
hepowerto
giver
etr
ospect
iveef
fecttother
ulesoranyofthemfrom adatenotear
li
ert
han
thedat
eonwhichtheprovisi
onsofthi
sActcomei nt
ofor
c e.

(
4)Anyr ul
esmadeundersub-sect
ion(1)orsub-sect
ion(
2)mayprovi
det hata
cont
ravent
iont
her
eofshal
lbel i
abletoape nal
tynotexceedi
ngt
enthousand
rupees.

165.TheCommissi
onermay,bynoti
fi
cat
ion,makeregul
ati
onsconsi
stentwi
tht
hisAct
andt
herul
esmadether
eundert
ocarryoutthepr
ovisi
onsoft
hisAct.

166.Ever yr ulemadebyt heGover nment ,ever yregulati

onmadebyt heCommi ssi oner
andever ynotif
icati
onissuedbyt heGover nmentundert hisAct ,shal lbel aid,as
soonasmaybeaf teri
tismadeori ssued, beforetheSt ateLegi slat
ur e,whi leiti sin
session,f oratotalper
iodoft hi
rtydayswhi chmaybecompr i
sedi nonesessi onor
i
nt wo ormor e successive sessions,and i f
,bef orethe expi ryoft he sessi on
i
mmedi atelyfol
lowingthesessi onort hesuccessi vesessi onsaf oresai d,theSt ate
Legislatureagreesi nmaki nganymodi fi
cat i
oni nther uleorr egulationori nt he
noti
fication,ast hecasemaybe,ort heSt ateLegi slat
ur eagr eest hatt her uleor
regulati
on ort he not
ifi
cation should notbe made,t he rule orr egul ation or
noti
fication,asthecasemaybe,shal lthereaf t
erhaveef fectonl yinsuchmodi f
ied
form orbeofnoef fect
,ast hecasemaybe;so, however,thatanysuchmodi fi
cat ion
orannul mentshal lbewithoutpr ej
udicet ot hevalidit
yofanyt hingpr evi ouslydone
undert hatruleorregul
ati
onornot i
fi
cation,ast hecasemaybe.

167.TheCommi ssi
onermay,bynot
if
icati
on,di
rectt
hatsubjectt
osuchcondi
ti
ons,if
any,asmaybespecif
iedi
nthenot
ifi
cati
on,anypowerexerci
sabl
ebyanyauthor
it
y
 orof
fi
cerunderthisActmaybeexercisabl
eal
sobyanot
heraut
hor
it
yorof
fi
ceras
maybespecif
iedinsuchnot
if
icat
ion.

168.TheCommi ssi
onermay,i fheconsider
sitnecessar
yorexpedientsot odoforthe
purpose ofuniformityint he i
mplementation ofthis Act,i
ssue such orders,
i
nstructi
onsordirect
ionstotheStatetaxoff
icersasi
tmaydeem f it,
andthereupon
al
lsuchof fi
cer
sandal lot
herpersonsemployedi nt
hei mplementat
ionofthisAct
shallobser
veandf ol
lowsuchorders,i
nstr
ucti
onsordirect
ions.

169.(1)Anydeci
sion,order,summons,noti
ceorothercommunicat
ionundert
hisAct
ortherul
esmadet hereundershal
lbeservedbyanyoneofthefoll
owi
ngmet hods,
namely:
--

(a)bygivingort enderingitdir
ectl
yorbyamessengeri ncludingacour i
ert
othe
addresseeort hetaxablepersonort ohismanagerorauthor
isedr epr
esentati
veoran
advocateorat axpractiti
onerholdi
ngauthori
tytoappearint
hepr oceedingsonbehal
f
ofthetaxablepersonort oaper sonregular
lyemployedbyhiminconnect i
onwit
hthe
business,
ortoanyadul tmemberoff amilyr
esidi
ngwiththet
axableper son;or

(b)byr
egist
eredpostorspeedpostorcourierwi
thacknowledgementdue,t
ot he
personforwhom itisi nt
endedorhi saut
hor
isedrepr
esentat
ive,i
fany,athislast
knownplaceofbusinessorresi
dence;or

(
c)bysendingacommunicati
ontohise-
mai
laddr
esspr
ovi
dedatt
het
imeof
r
egi
str
ati
onorasamendedf
rom t
imet
oti
me;or

(
d)bymaki
ngi
tavai
labl
eont
hecommonpor
tal
;or

(e)bypubli
cat
ioninanewspapercir
cul
ati
nginthelocal
it
yinwhichthetaxabl
e
personorthepersontowhom iti
sissuedi
slastknowntohaveresi
ded,car
riedon
businessorper
sonal
lywor
kedforgai
n;or

(f
)ifnoneofthemodesaf or
esai
dispr act
icabl
e,byaffixi
ngi
tinsomeconspicuous
pl
aceathi slastknownpl aceofbusi nessorr esidenceandi fsuchmodei snot
pr
acti
cableforanyreason,thenbyaffi
xingacopyt her
eofonthenoticeboar
doft he
of
fi
ceoft heconcernedof f
icerorauthorit
ywhoorwhi chpassedsuchdecisionor
or
derorissuedsuchsummonsornot i
ce.

(
2)Everydeci
sion,or
de r
,summons,noti
ceoranycommuni cat
ionshal
lbedeemed
tohavebeens ervedonthedateonwhichitist
enderedorpubl
ishedoracopy
ther
eofi
saf fi
xedinthemannerprovi
dedi
ns ub-
sect
ion(1).

(
3)Whe nsuchde ci
sion,order
,summons ,not
iceoranycommunicat
ionissentby
regi
ster
edpos torspe edpost,i
tshallbede emedtohavebeenrecei
vedbythe
addresseeatthee xpir
yoft hepe r
iodnor mall
ytakenbysuchpos tint
ransi
t
unlesst
hec ontr
aryisproved.

170.Theamountoft ax,i
nter
est
,penalt
y,fi
neoranyot hersum payabl
e,andthe
amountofr
efundoranyothersum due,undert
hepr
ovisi
onsofthisActshal
lbe
 roundedof ftothenear
estrupeeand,f
orthi
spur pose,wheresuchamountcontai
ns
apartofar upeeconsist
ingofpai
se,t
hen,i
fsuchpar tisfi
ft
ypaiseormore,i
tshall
beincreasedt oonerupeeandifsuchpar
tislessthanfif
typai
seitshal
lbei
gnored.

171.(1)Anyr
eductioni
nrat
eoft
axonanysuppl
yofgoodsorser
vicesort
hebenef
itof
i
nputtaxcredi
tshallbepassed on t
othereci
pientbywayofcommensur ate
r
educti
oni
npr i
ces.

(
2)The Ce ntralGov ernme ntmay ,on r ecomme ndati
ons of the Counc il
,by
noti
fi
cation,c ons t
it
ute an Aut hori
ty,or empowe r an e xi
sti
ng Aut hori
ty
consti
tutedunde ranylawf orthetimebeinginforce,t
oexaminewhe therinput
taxcreditsav ai
l
e dbyanyr egist
eredpersonort hereduct
ioni nthetaxr ate
haveac t
ual l
yresult
edinac omme nsur
atereduct
ioninthepr
iceofthegoodsor
servi
cesorbot hs uppli
edbyhim.

(
3)TheAuthor
it
yref
err
edtoinsub-
sect
ion(2)s hal
lexer
cisesuchpower
sand
di
schar
gesuchf
uncti
onsasmaybeprescr
ibed.

172.( 1)Ifanydiff
icul
tyar i
sesi n giving ef
fectto anyprovisionsoft hi
sAct ,t
he
Governmentmay, ontherecommendat i
onsoftheCouncil
, byagener aloraspecial
orderpubl
ishedi
nt heOf f
ici
alGazet te,makesuchpr ovi
sionsnoti nconsist
entwit
h
theprovi
sionsofthisActort her ulesorr egul
ati
onsmadet hereunder,asmaybe
necessar
yorexpedientforthepurposeofr emovingthesaiddiffi
culty:

Pr
ovidedt
hatnosuchordershal
lbemadeaf
tert
heexpi
ryofaper
iodoft
hreeyear
s
f
rom t
hedateofcommencementofthi
sAct
.

(
2)Ever
yordermadeundert
hissect
ionshal
lbel
aid,
assoonasmaybe,af
teri
tis
made,bef
oret
heStat
eLegisl
atur
e.

173.Saveasot
her
wisepr
ovi
dedi
nthi
sAct
,onandf
rom t
hedat
eofcommencement
ofthisAct,-
(
i)Cl ause(e)andClause( f
)ofsub- secti
on(1)ofSecti
on230andSect i
ons271and
277oft heKeral
aMuni cipali
tyAct,1994;
(
ii)Secti
on209andSect ion200oft heKer al
aPanchayathRajAct
,1994;
(
iii
)Section5Aoft heKeralaBui l
dingTaxAct ,1975;
(
iv)Sub-secti
on(1A)and( 1AA)ofSect ion3ofKer al
aSurchar
geonTaxesAct,1957;
(
v)Sect i
on10oft heKeralaFi nanceAct ,
2011;and
(
vi)Secti
on11oft heKeralaFi nanceAct ,
2013

shal
lbeomi
tt
ed.

174.( 1) Save as other

wise provi
ded int hi
s Act
,on and f
rom the dat
e of
commencementoft hisAct,
(i
)theKer al
aValueAddedTaxAct ,2003,
(exceptinrespectofgoodsi ncludedintheEnt
ry54oftheStat
eListofthe
SeventhScheduletotheConsti
tuti
on)

(
ii
)Ker
alaTaxonEnt
ryofGoodsi
ntoLocalAr
easAct
,1994
(
ii
i)Ker
alaTaxonLuxur
iesAct
,1976.
(
iv)TheKer
alaTaxonPaperLot
ter
iesAct
,2005

(
her
eaf
terr
efer
redt
oast
her
epeal
edAct
s)ar
eher
ebyr
epeal
ed.

(2)Therepealofthesai dActsandtheamendmentoftheAct
sspecifi
edi
nsecti
on
173 (her
eaft
err ef
err
edt oas“suchamendment”or“
amendedAct”,ast
hecasemay
be)totheextentmentionedinsub-
secti
on(
1)orsect
ion173shal
lnot—

(a)revi
veanyt
hingnoti
nfor
ceorexi
sti
ngatt
het
imeofsuchamendmentor
r
epeal
;or

(
b)affectt
heprevi
ousoper
ati
onoftheamendedAct
sorr
epeal
edAct
sandor
der
s
oranyt
hingdulydoneorsuf
fer
edther
eunder
;or

(c)affectanyr ight,privi
lege,obl i
gation,orli
abilit
yacquired,accruedori ncurr
ed
undert heamendedAct sorr epealedAct sorordersundersuchr epealedoramended
Acts:
Pr ovi
ded thatanyt axexempt ion granted as an incentive agai
nsti nvest
ment
through a not i
fi
cation shallnotcont inue as privil
ege i
ft he said notifi
cati
on i
s
rescindedonoraf t
ertheappoi nt
edday;or
(d)affectanyt ax,surchar ge,penalty,fine,
i
nter
estasar edueormaybecomedue
oranyf orfei
tur
eorpuni shmenti ncurredori nfl
ictedinr espectofanyof f
enceor
violat
ioncommi ttedagai nstthepr ovisi
onsoft heamendedAct sorr epealedActs;or

(e)af fectanyi nvest i

gation,inqui
ry,verifi
cati
on (incl
uding scr utinyand audi t)
,
assessmentpr oceedings, adj
udicati
onandanyot herl
egalproceedi ngsorr ecover
yof
arrearsorr emedyi nr espectofanysucht ax,surcharge,penalty,fi
ne,i nterest
,ri
ght,
pri
vilege,obl i
gati
on,l i
abili
ty,forf
eitur
eorpuni shment,asaf oresaid,andanysuch
i
nvest igation, inqui
r y, verif
icati
on (includi
ng scr uti
ny and audi t), assessment
proceedi ngs,adj udication and otherl egalproceedings orr ecover yofar r
ears or
remedymaybei nsti
t uted,conti
nuedorenf orced,andanysucht ax,sur charge,penalt
y,
fi
ne,i nterest,for
fei
tur eorpuni shmentmaybel evi
edori mposedasi ftheseAct shad
notbeensoamendedorr epealed;

(
f)aff
ectanypr oceedingsincl
uding t
hatrelati
ng to an appeal
,revi
sion,
revi
ew orref
erence,insti
tutedbef
ore,onoraf t
ertheappoi nt
eddayunde rthe
sai
dame ndedAc tsorr epealedAct
sands uchpr oceedingsshallbecont
inued
underthesaidame ndedAc t
sorrepeal
edAc t
sasi fthisActhadnotc omeinto
for
ceandthes ai
dAc t
shadnotbe ename ndedorrepe al
ed.

(
2)Theme nti
onoft hepar
ti
cul
armatter
sr ef
err
edtoinsec t
ion173ands ub-
sect
ion(1)shallnotbeheldtoprej
udi
ceoraf f
ectthegeneralappli
cati
onof
sect
ion--oft
he< NameoftheStat
e>GeneralCl
ausesAct
,--
--wit
hr egar
dtot he
ef
fectofrepeal
.