The Manipur Goods and Services Tax (Second Amendment) Bill, 2025 seeks to make several amendments to the Manipur Goods and Services Tax Act, 2017. The Bill is introduced to align the State GST law with amendments made to the Central Goods and Services Tax Act, 2017 through the Finance Act, 2025, as recommended by the 56th GST Council. The Bill also replaces the Manipur Goods and Services Tax (Second Amendment) Ordinance, 2025, promulgated due to the proclamation under Article 356 and Parliament not being in session.
The Bill begins with provisions for its short title and commencement. Sections 2 to 5, 7 to 13, and 15 will come into force on dates notified by the State Government.
Amendments are proposed to section 2 of the principal Act. In clause (61), a reference to tax payable under section 5(3) or 5(4) of the Integrated Goods and Services Tax Act, 2017 is added with retrospective effect from 1 April 2025. In clause (69), the wording relating to management of municipal or local funds is revised, and an Explanation is inserted defining “local fund” and “municipal fund” as funds under the control or management of local self-government authorities with powers to levy or collect taxes or fees. A new clause (116A) introduces the definition of “unique identification marking,” referring to markings such as digital stamps or digital marks that are unique, secure and non-removable.
Section 12 is amended to omit sub-section (4) and revise sub-section (5) by removing reference to sub-section (4). Similar amendments are made to section 13, omitting its sub-section (4) and revising sub-section (5). Section 17 is amended to replace the words “plant or machinery” with “plant and machinery” with retrospective effect from 1 July 2017. An additional Explanation clarifies that, regardless of any contrary judicial ruling, “plant or machinery” must always be read as “plant and machinery.”
Section 20 is amended with effect from 1 April 2025 to include references to tax payable under section 5(3) or 5(4) of the Integrated Goods and Services Tax Act, 2017, in both sub-sections (1) and (2). Section 34 is amended to substitute the proviso regarding the reduction of output tax liability through credit notes. The substituted proviso states that such reduction is not permitted if attributable input tax credit has not been reversed by the recipient or if the tax incidence has been passed on to any other person.
Section 38 is amended to replace the reference to “auto-generated statement” with “statement.” In sub-section (2), the same substitution is made, the word “and” is omitted from clause (a), the word “including” is inserted in clause (b), and a new clause (c) is added to enable prescription of additional details. Section 39(1) is amended to provide that returns must be filed within a specified time and subject to prescribed conditions and restrictions.
Section 107 is amended to introduce a new proviso requiring a pre-deposit of 10% of penalty for appeals against penalty-only orders. Section 112 is similarly amended by inserting a proviso requiring payment of 10% of the penalty, in addition to amounts payable under section 107(6), before filing an appeal against penalty-only orders.
A new section 122B is inserted to impose penalties for failure to comply with track and trace requirements under section 148A. It prescribes a penalty equal to ₹1 lakh or 10% of tax payable on the goods, whichever is higher, in addition to other applicable penalties.
Section 148A is newly inserted to establish a track and trace mechanism for certain goods. The Government may notify the goods and the persons to whom the section applies. It may also prescribe systems for affixation of unique identification markings and the information they must contain. Persons covered under the provision must affix markings, furnish prescribed information, maintain records, provide details of manufacturing machinery, and pay amounts related to the system.
Schedule III is amended retrospectively from 1 July 2017. A new clause (aa) is added to include supply of goods warehoused in a Special Economic Zone or Free Trade Warehousing Zone to any person before export clearance or to the Domestic Tariff Area. Explanation 2 is revised to insert a reference to clause (a), and a new Explanation 3 provides definitions for Special Economic Zone, Free Trade Warehousing Zone and Domestic Tariff Area based on the Special Economic Zones Act, 2005.
The Bill specifies that no refund shall be provided for tax collected that would not have been collected if section 14 had been in force at all relevant times. It also repeals the Second Amendment Ordinance, 2025, with savings for actions taken under it.
The Statement of Objects and Reasons explains that amendments to the State law are necessary to maintain consistency with the Central Act. The Ordinance was promulgated due to the ongoing proclamation under Article 356 and the need for immediate action. The Bill is introduced to replace the Ordinance.
The Financial Memorandum states that the Bill does not involve any expenditure from the Consolidated Fund of the State. The Delegated Legislation Memorandum outlines the rule-making powers conferred, particularly in relation to section 38 and the newly inserted section 148A, noting that the delegated powers relate to procedural matters.
AS INTRODUCED IN LOK SABHA
Bill No. 140 of 2025
THE MANIPUR GOODS AND SERVICES TAX (SECOND AMENDMENT) BILL, 2025
A Bill further to amend the Manipur Goods and Services Tax Act, 2017.
BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India as follows:—
1. Short title and commencement.
(1) This Act may be called the Manipur Goods and Services Tax (Second Amendment) Act, 2025.
(2) Save as otherwise provided in this Act, sections 2 to 5, 7 to 13 and 15 shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
2. Amendment of section 2.
Manipur Act 3 of 2017.
In the Manipur Goods and Services Tax Act, 2017 (hereinafter referred to as the principal Act), in section 2,—
a. in clause (61), after the word and figure “section 9”, the words, brackets and figures “of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act, 2017” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2025;
b. in clause (69),—
i. in sub-clause (c), for the words “management of a municipal or local fund;”, the words “management of a local fund or municipal fund.” shall be substituted;
ii. after sub-clause (c), the following Explanation shall be inserted, namely:—
‘Explanation.—For the purposes of this sub-clause,—
a. “local fund” means any fund under the control or management of an authority of a local self-government established for discharging civic functions in relation to a Panchayat area and vested by law with the powers to levy, collect and appropriate any tax, duty, toll, cess or fee, by whatever name called;
b. “municipal fund” means any fund under the control or management of an authority of a local self-government established for discharging civic functions in relation to a Metropolitan area or Municipal area and vested by law with the powers to levy, collect and appropriate any tax, duty, toll, cess or fee, by whatever name called;’;
c. after clause (116), the following clause shall be inserted, namely:—
‘(116A) “unique identification marking” means the unique identification marking referred to in clause (b) of sub-section (2) of section 148A and includes a digital stamp, digital mark or any other similar marking, which is unique, secure and non-removable;’.
3. Amendment of section 12.
In section 12 of the principal Act,—
a. sub-section (4) shall be omitted;
b. in sub-section (5), for the words, brackets and figures “, sub-section (3) or sub-section (4),” the words, brackets and figure “or sub-section (3)” shall be substituted.
4. Amendment section 13.
In section 13 of the principal Act,—
a. sub-section (4) shall be omitted;
b. in sub-section (5), for the words, brackets and figures “, sub-section (3) or sub-section (4),” the words, brackets and figure “or sub-section (3)” shall be substituted.
5. Amendment of section 17.
In section 17 of the principal Act, in sub-section (5), in clause (d),—
a. for the words “plant or machinery”, the words “plant and machinery” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017;
b. the Explanation shall be numbered as Explanation 1 thereof, and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:—
‘Explanation 2.—For the purposes of clause (d), it is hereby clarified that notwithstanding anything to the contrary contained in any judgment, decree or order of any court, tribunal, or other authority, any reference to “plant or machinery” shall be construed and shall always be deemed to have been construed as a reference to “plant and machinery”;’.
6. Amendment of section 20.
In section 20 of the principal Act, with effect from the 1st day of April, 2025,—
a. in sub-section (1), after the word and figure “section 9”, the words, brackets and figures “of this Act or under sub-section (3) or sub-section (4) of 13 of 2017. section 5 of the Integrated Goods and Services Tax Act, 2017” shall be inserted and shall be deemed to have been inserted;
b. in sub-section (2), after the word and figure “section 9”, the words, brackets and figures “of this Act or under sub-section (3) or sub-section (4) of 13 of 2017. section 5 of the Integrated Goods and Services Tax Act, 2017,” shall be inserted and shall be deemed to have been inserted.
7. Amendment of section 34.
In section 34 of the principal Act, in sub-section (2), for the proviso, the following proviso shall be substituted, namely:—
“Provided that no reduction in output tax liability of the supplier shall be permitted, if the—
i. input tax credit as is attributable to such a credit note, if availed, has not been reversed by the recipient, where such recipient is a registered person; or
ii. incidence of tax on such supply has been passed on to any other person, in other cases.”.
8. Amendment of section 38.
In section 38 of the principal Act,—
a. in sub-section (1), for the words “an auto-generated statement”, the words “a statement” shall be substituted;
b. in sub-section (2),—
i. for the words “auto-generated statement under”, the words “statement referred in” shall be substituted;
ii. in clause (a), the word “and” shall be omitted;
iii. in clause (b), after the words “by the recipient,”, the word “including” shall be inserted;
iv. after clause (b), the following clause shall be inserted, namely:—
“(c) such other details, as may be prescribed.”.
9. Amendment of section 39.
In section 39 of the principal Act, in sub-section (1), for the words “and within such time”, the words “within such time, and subject to such conditions and restrictions” shall be substituted.
10. Amendment of section 107.
In section 107 of the principal Act, in sub-section (6), for the proviso, the following proviso shall be substituted, namely:—
“Provided that in case of any order demanding penalty without involving demand of any tax, no appeal shall be filed against such order unless a sum equal to bten per cent. of the said penalty has been paid by the appellant.”.
11. Amendment of section 112.
In section 112 of the principal Act, in sub-section (8), the following proviso shall be inserted, namely:—
“Provided that in case of any order demanding penalty without involving demand of any tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said penalty, in addition to the amount payable under the proviso to sub-section (6) of section 107 has been paid by the appellant.”.
12. Insertion of new section 122B.
After section 122A of the principal Act, the following section shall be inserted, namely:—
Penalty for failure to comply with track and trace mechanism.
“122B. Notwithstanding anything contained in this Act, where any person referred to in clause (b) of sub-section (1) of section 148A acts in contravention of the provisions of the said section, he shall, in addition to any penalty under Chapter XV or the provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees or ten per cent. of the tax payable on such goods, whichever is higher.”.
13. Insertion of new section 148A.
After section 148 of the principal Act, the following section shall be inserted, namely:—
Track and trace mechanism for certain goods.
“148A. (1) The Government may, on the recommendations of the Council, by notification, specify—
a. the goods;
b. persons or class of persons who are in possession or deal with such goods, to which the provisions of this section shall apply.
(2) The Government may, in respect of the goods referred to in clause (a) of sub-section (1),—
a. provide a system for enabling affixation of unique identification marking and for electronic storage and access of information contained therein, through such persons, as may be prescribed; and
b. prescribe the unique identification marking for such goods, including the information to be recorded therein.
(3) The persons referred to in sub-section (1) shall—
a. affix on the said goods or packages thereof, a unique identification marking, containing such information and in such manner;
b. furnish such information and details within such time and maintain such records or documents, in such form and manner;
c. furnish details of the machinery installed in the place of business of manufacture of such goods, including the identification, capacity, duration of operation and such other details or information, within such time and in such form and manner;
d. pay such amount in relation to the system referred to in sub-section (2), as may be prescribed.”.
14. Amendment of Schedule III.
In Schedule III to the principal Act, with effect from the 1st day of July, 2017,—
(i) in paragraph 8, after clause (a), the following clause shall be inserted and shall be deemed to have been inserted, namely:—
“(aa) supply of goods warehoused in a Special Economic Zone or in a Free Trade Warehousing Zone to any person before clearance for exports or to the Domestic Tariff Area;”;
(ii) in Explanation 2, after the words “For the purposes of”, the words, brackets and letter “clause (a) of” shall be inserted and shall be deemed to have been inserted;
(iii) after Explanation 2, the following Explanation shall be inserted and shall be deemed to have been inserted, namely:—
‘Explanation 3.—For the purposes of clause (aa), the expressions “Special Economic Zone”, “Free Trade Warehousing Zone” and “Domestic Tariff Area” shall have the same meanings as respectively assigned to them in section 2 of the Special Economic Zones Act, 2005.’.
15. No refund of tax collected.
No refund shall be made of all such tax which has been collected, but which would not have been so collected, had section 14 been in force at all material times.
16. Repeal and savings.
(1) The Manipur Goods and Services Tax (Second Amendment) Ordinance, 2025 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.
STATEMENT OF OBJECTS AND REASONS
The Manipur Goods and Services Tax Act, 2017 was enacted pursuant to enactment of the Central Goods and Services Tax Act, 2017 to make provision for levy and collection of tax on intra-State supply of goods or services or both by the State of Manipur and for matters connected therewith or incidental thereto.
2. The provisions of the Central Goods and Services Tax Act, 2017 were amended through sections 121 to 134 of the Finance Act, 2025 and similar amendments were required to be carried out in the Manipur Goods and Services Tax Act, 2017 at the earliest, as per the decision of the 56th GST Council, to avoid repugnancy with the said Central Act.
3. Since the proclamation issued by the President under article 356 of the Constitution is in force in the State of Manipur since the 13th February, 2025 and as Parliament was not in session and circumstances existed which rendered it necessary to take immediate action to have continuance of the Manipur Goods and Services Tax Act, 2017 in line with the Central Goods and Services Tax Act, 2017, the President promulgated the Manipur Goods and Services Tax (Second Amendment) Ordinance, 2025 on the 7th October, 2025.
4. The Manipur Goods and Services Tax (Second Amendment) Ordinance, 2025 is to be replaced by an Act of Parliament and for the said purpose, it is proposed to introduce the Manipur Goods and Services Tax (Second Amendment) Bill, 2025 in Parliament.
5. The Bill seeks to achieve the above objectives.
NEW DELHI;
The 27th November, 2025.
NIRMALA SITHARAMAN.
FINANCIAL MEMORANDUM
The Bill seeks to amend the Manipur Goods and Services Tax Act, 2017. The Bill, if enacted, will not involve any expenditure, either recurring or non-recurring nature from the Consolidated Fund of the State of Manipur.
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 8 of the Bill seeks to amend sub-section (2) of section 38 of the Manipur Goods and Services Tax Act to empower the Government to provide by rules other details to be made available in the statement.
2. Clause 13 of the Bill seeks to insert a new section 148A in the Manipur Goods and Services Tax Act, relating to track and trace mechanism for certain goods. Sub-section (2) of the said section 148A seeks to empower the Government to provide by rules a system for enabling affixation of unique identification marking and for electronic storage and access of information and the person through whom such system may be provided. It further seeks to empower the Government to provide by rules the unique identification marking for goods including the information to be recorded therein.
3. Sub-section (3) of the said section 148A seeks to empower the Government to provide by rules, the information to be contained in, and the manner of affixing on the goods and packages a unique identification marking under clause (a), the form and manner and the time for furnishing information and details and maintaining records or documents under clause (b), the time within which and the form and manner in which other details shall be furnished under clause (c) and the amount to be paid under clause (d) of the said sub-section.
4. The matters in respect of which rules or regulations may be made or notifications or order may be issued in accordance with the provisions of the Bill are matters of procedure and detail and it is not practicable to provide for them in the Bill itself. The delegation of legislative power is, therefore, of a normal character.
