In Part one Author updated Section 1 to 66 of CGST Act 2017 as on 04.04.2020. Author taken CGST ACT, 2017 and GST Rules published in various sites as source files and compiled the booklet with Sections and appended the related rules below each section.
CGST Act with Rules – Updated Upto 04-04-2020 (Section 1 to 66)
Download CGST Act with Rules – Updated Upto 04-04-2020
Page Contents
- CHAPTER-XIV
- Inspection, Search, Seizure and Arrest
- Sec 68. Inspection of goods in movement
- Chapter-XV
- Demand and Recovery
- Sec 75. General provisions relating to determination of tax
- Sec 76. Tax collected but not paid to Government
- Sec 77. Tax wrongfully collected and paid to Central Government or State Government
- Sec 78. Initiation of recovery proceedings
- Sec 79. Recovery of tax
- Sec 80. Payment of tax and other amount in instalments
- Sec 81. Transfer of property to be void in certain cases
- Sec 82. Tax to be first charge on property
- Sec 83. Provisional attachment to protect revenue in certain cases
- Sec 84. Continuation and validation of certain recovery proceedings
- Chapter-XVI
- Liability to Pay in Certain Cases
- Sec 85. Liability in case of transfer of business
- Sec 86. Liability of agent and principal
- Sec 87. Liability in case of amalgamation or merger of Companies
- Sec 88. Liability in case of Company in liquidation
- Sec 89. Liability of directors of Private Company
- Sec 90. Liability of partners of Firm to pay tax
- Sec 91. Liability of guardians, trustees, etc.
- Sec 92. Liability of Court of Wards, etc.
- Sec 93. Special provisions regarding liability to pay tax, interest or penalty in certain Cases
- Sec 94. Liability in other cases
- Advance Ruling
- Sec 95. Definitions
- Sec 96. Authority for Advance Ruling*
- Sec 97. Application for Advance Ruling
- Sec 98. Procedure on receipt of Application
- Sec 99.Appellate Authority for Advance Ruling**
- Sec 100. Appeal to Appellate Authority
- Sec 101. Orders of Appellate Authority
- Sec 102. Rectification of advance ruling
- Sec 103. Applicability of advance ruling
- Sec 104. Advance ruling to be void in certain circumstances
- Sec 105. Powers of Authority and Appellate Authority
- Sec 106. Procedure of Authority and Appellate Authority
- Chapter-XVIII
- Appeals And Revision
- Sec 107. Appeals to Appellate Authority
- Sec 108. Powers of Revisional Authority
- Sec 109. Constitution of Appellate Tribunal and Benches thereof
- Sec 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc
- Sec 111. Procedure before Appellate Tribunal
- Sec 112. Appeal before Appellate Tribunal
- Sec 113. Orders of Appellate Tribunal
- Sec 114. Financial and administrative powers of President
- Sec 115. Interest on refund of amount paid for admission of appeal
- Sec 116. Appearance by authorised representative
- Sec 117. Appeal to High Court
- Sec 118. Appeal to Supreme Court
- Sec 119. Sums dues to paid notwithstanding appeal etc
- Sec 120. Appeal not to be filed in certain cases
- Sec 121. Non appealable decisions and orders
- Chapter-XIX
- Offences And Penalties
- Sec 122. Penalty for certain offences
- Sec 123. Penalty for failure to furnish information return
- Sec 124. Fine for failure to furnish statistics
- Sec 125. General penalty
- Sec 126. General disciplines related to penalty
- Sec 127. Power to impose penalty in certain cases
- Sec 128. Power to waive penalty or fee or both
- Sec 129. Detention, seizure and release of goods and conveyances in transit
- Sec 130. Confiscation of goods or conveyances and levy of penalty
- Sec 131. Confiscation or penalty not to interfere with other punishments
- Sec 132. Punishment for certain offences
- Sec 133. Liability of officers and certain other persons
- Sec 134. Cognizance of Offence
- Sec 135. Presumption of culpable mental state
- Sec 136. Relevancy of statements under certain circumstances
- Sec 137. Offences by companies
- Sec 138. Compounding of offences
- Chapter-XX
- Transitional Provisions
- Chapter-XXI
- Miscellaneous
- Sec 143. Job work procedure
- Sec 144. Presumption as to documents in certain cases
- Sec 145. Admissibility of microfilms, facsimile copies of documents and computer printouts as documents and as evidence
- Sec 146. Common Portal
- Sec 147. Deemed exports
- Sec 148. Special procedure for certain processes
- Sec 149. Goods and services tax compliance rating
- Sec 150. Obligation to furnish information return
- Sec 151. Power to collect statistics
- Sec 152. Bar on disclosure of information
- Sec 153. Taking assistance from an expert
- Sec 154. Power to take samples
- Sec 155. Burden of proof
- Sec 156. Persons deemed to be public servants
- Sec 157. Protection of action taken under this Act
- Sec 158. Disclosure of information by a public servant
- Sec 159. Publication of information in respect of persons in certain cases
- Sec 160. Assessment proceedings, etc., not to be invalid on certain grounds
- Sec 161. Rectification of errors apparent on the face of record
- Sec 162. Bar on jurisdiction of Civil Courts
- Sec 163. Levy of fee
- Sec 164. Power of Government to make rules
- Sec 165. Power to make regulations
- Sec 166. Laying of rules, regulations and notifications
- Sec 167. Delegation of powers
- Sec 168. Power to issue instructions or directions
- Sec 169. Service of notice in certain circumstances
- Sec 170. Rounding off of tax, etc.
- Sec 171. Anti-profiteering measure
- Sec 172. Removal of difficulties
- Sec 173. Amendment of Act 32 of 1994
- Sec 174. Repeal and saving
CHAPTER-XIV
Inspection, Search, Seizure and Arrest
| Section | Rules | Rules related | Sections related |
| 67. Power of inspection, search and seizure | 138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill
138A. Documents and devices to be carried by a person-in-charge of a conveyance 138B. Verification documents and of conveyances 138C. Inspection and verification of goods 138D. Facility for uploading information regarding detention of vehicle 138E. Restriction on furnishing of informationin Part-A of Form GST EWB-01 139. Inspection, search and seizure 140. Bond and security for release of seized goods 141. Procedure in respect of seized goods |
139-141 | |
| 68. Inspection of goods in movement | 138 | ||
| 69. Power to arrest | |||
| 70. Power to summon persons to give evidence and produce documents | 132 | ||
| 70. Access to business premises | |||
| 71 Access to business Premises | |||
| 72. Officers to assist properofficers |
Sec 67. Power of inspection, search and seizure
(1) Where the proper officer, not below the rank of Joint Commissioner, has reasons tobelieve that––
(a) a taxable person has suppressed any transaction relating to supply of goods orservices or both or the stock of goods in hand, or has claimed input tax credit in excessof his entitlement under this Act or has indulged in contravention of any of theprovisions of this Act or the rules made thereunder to evade tax under this Act; or
(b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escapedpayment of tax or has kept his accounts or goods in such a manner as is likely to causeevasion of tax payable under this Act, he may authorise in writing any other officer ofcentral tax to inspect any places of business of the taxable person or the personsengaged in the business of transporting goods or the owner or the operator ofwarehouse or godown or any other place.
(2) Where the proper officer, not below the rank of Joint Commissioner, either pursuantto an inspection carried out under sub-section (1) or otherwise, has reasons to believethat any goods liable to confiscation or any documents or books or things, which in hisopinion shall be useful for or relevant to any proceedings under this Act, are secreted inany place, he may authorise in writing any other officer of central tax to search and seizeor may himself search and seize such goods, documents or books or things:
Provided that where it is not practicable to seize any such goods, the proper officer, orany officer authorized by him, may serve on the owner or the custodian of the goods anorder that he shall not remove, part with, or otherwise deal with the goods except withthe previous permission of such officer:
Provided further that the documents or books or things so seized shall be retained bysuch officer only for so long as may be necessary for their examination and for anyinquiry or proceedings under this Act.
(3) The documents, books or things referred to in sub-section (2) or any otherdocuments, books or things produced by a taxable person or any other person, whichhave not been relied upon for the issue of notice under this Act or the rules madethereunder, shall be returned to such person within a period not exceeding thirty days ofthe issue of the said notice.
(4) The officer authorised under sub-section (2) shall have the power to seal or breakopen the door of any premises or to break open any almirah, electronic devices, box,receptacle in which any goods, accounts, registers or documents of the person aresuspected to be concealed, where access to such premises, almirah, electronic devices,box or receptacle is denied.
(5) The person from whose custody any documents are seized under sub-section (2) shallbe entitled to make copies thereof or take extracts therefrom in the presence of anauthorised officer at such place and time as such officer may indicate in this behalfexcept where making such copies or taking such extracts may, in the opinion of theproper officer, prejudicially affect the investigation.
(6) The goods so seized under sub-section (2) shall be released, on a provisional basis,upon execution of a bond and furnishing of a security, in such manner and of suchquantum, respectively, as may be prescribed or on payment of applicable tax, interestand penalty payable, as the case may be.
(7) Where any goods are seized under sub-section (2) and no notice in respect thereof isgiven within six months of the seizure of the goods, the goods shall be returned to theperson from whose possession they were seized:
Provided that the period of six months may, on sufficient cause being shown, beextended by the proper officer for a further period not exceeding six months.
(8) The Government may, having regard to the perishable or hazardous nature of anygoods, depreciation in the value of the goods with the passage of time, constraints ofstorage space for the goods or any other relevant considerations, by notification, specifythe goods or class of goods which shall, as soon as may be after its seizure under subsection(2), be disposed of by the proper officer in such manner as may be prescribed.
(9) Where any goods, being goods specified under sub-section (8), have been seized by aproper officer, or any officer authorised by him under sub-section (2), he shall preparean inventory of such goods in such manner as may be prescribed.
(10) The provisions of the Code of Criminal Procedure, 1973, relating to search andseizure, shall, so far as may be, apply to search and seizure under this section subject tothe modification that sub-section (5) of section 165 of the said Code shall have effect as if for the word “Magistrate”, wherever it occurs, the word “Commissioner” were substituted.
(11) Where the proper officer has reasons to believe that any person has evaded or isattempting to evade the payment of any tax, he may, for reasons to be recorded inwriting, seize the accounts, registers or documents of such person produced before himand shall grant a receipt for the same, and shall retain the same for so long as may benecessary in connection with any proceedings under this Act or the rules made thereunder for prosecution.
(12) The Commissioner or an officer authorised by him may cause purchase of anygoods or services or both by any person authorised by him from the business premisesof any taxable person, to check the issue of tax invoices or bills of supply by such taxableperson, and on return of goods so purchased by such officer, such taxable person or anyperson in charge of the business premises shall refund the amount so paid towards thegoods after cancelling any tax invoice or bill of supply issued earlier.
Rules related to Sec 67 : Rule 139 to 141
139. Inspection, search and seizure.-
(1) Where the proper officer not below the rank of a Joint Commissioner has reasons to believe that a place of business or any other place is to be visited for the purposes of inspection or search or, as the case may be, seizure in accordance with the provisions of section 67, he shall issue an authorisation in FORM GST INS-01 authorising any other officer subordinate to him to conduct the inspection or search or, as the case may be, seizure of goods, documents, books or things liable to confiscation.
(2) Where any goods, documents, books or things are liable for seizure under sub-section (2) of section 67, the proper officer or an authorised officer shall make an order of seizure in FORM GST INS-02.
(3) The proper officer or an authorised officer may entrust upon the owner or the custodian of goods, from whose custody such goods or things are seized, the custody of such goods or things for safe upkeep and the said person shall not remove, part with, or otherwise deal with the goods or things except with the previous permission of such officer.
(4) Where it is not practicable to seize any such goods, the proper officer or the authorised officer may serve on the owner or the custodian of the goods, an order of prohibition in FORM GST INS-03 that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer.
(5) The officer seizing the goods, documents, books or things shall prepare an inventory of such goods or documents or books or things containing, interalia, description, quantity or unit, make, mark or model, where applicable, and get it signed by the person from whom such goods or documents or books or things are seized.
140. Bond and security for release of seized goods.-
(1) The seized goods may be released on a provisional basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable.
Explanation.- For the purposes of the rules under the provisions of this Chapter, the ―applicable tax‖ shall include central tax and State tax or central tax and the Union territory tax, as the case may be and the cess, if any, payable under the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017).
(2) In case the person to whom the goods were released provisionally fails to produce the goods at the appointed date and place indicated by the proper officer, the security shall be encashed and adjusted against the tax, interest and penalty and fine, if any, payable in respect of such goods.
141. Procedure in respect of seized goods.-
(1) Where the goods or things seized are of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such goods or things or the amount of tax, interest and penalty that is or may become payable by the taxable person, whichever is lower, such goods or, as the case may be, things shall be released forthwith, by an order in FORM GST INS-05, on proof of payment.
(2) Where the taxable person fails to pay the amount referred to in sub-rule (1) in respect of the said goods or things, the [proper officer] Note No. 273 may dispose of such goods or things and the amount realized thereby shall be adjusted against the tax, interest, penalty, or any other amount payable in respect of such goods or things.
Sec 68. Inspection of goods in movement
(1) The Government may require the person in charge of a conveyance carrying anyconsignment of goods of value exceeding such amount as may be specified to carry withhim such documents and such devices as may be prescribed.
(2) The details of documents required to be carried under sub-section (1) shall bevalidated in such manner as may be prescribed.
(3) Where any conveyance referred to in sub-section (1) is intercepted by the properofficer at any place, he may require the person in charge of the said conveyance toproduce the documents prescribed under the said sub-section and devices forverification, and the said person shall be liable to produce the documents and devicesand also allow the inspection of goods.
Rules related to Sec 68 : rule 138
[138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-
(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees—
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person, shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:
Provided that the transporter, on an authorization received from the registered person, may furnish information in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:
Provided further that where the goods to be transported are supplied through an e-commerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency and a unique number will be generated on the said portal:
Provided also that where goods are sent by a principal located in one State or Union territory to a job worker located in any other State or Union territory, the e-way bill shall be generated either by the principal or the job worker, if registered, irrespective of the value of the consignment:
Provided also that where handicraft goods are transported from one State or Union territory to another State or Union territory by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.
[Explanation 1. – For the purposes of this rule, the expression ―handicraft goods‖ has the meaning as assigned to it in the Government of India, Ministry of Finance, notification No. 56/2018-Central Tax, dated the 23rd October, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1056 (E), dated the 23rd October, 2018 as amended from time to time.] Note No. 255
Explanation 1.– For the purposes of this rule, the expression ―handicraft goods‖ has the meaning as assigned to it in the Government of India, Ministry of Finance, notification No. 32/2017-Central Tax dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1158 (E) dated the 15th September, 2017 as amended from time to time.‖
Explanation 2.– For the purposes of this rule, the consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.
(2) Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall generate the e-way bill in FORM GSTEWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.
(2A) Where the goods are transported by railways or by air or vessel, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part B of FORM GST EWB-01:
Provided that where the goods are transported by railways, the railways shall not deliver the goods unless the e-way bill required under these rules is produced at the time of delivery.
(3) Where the e-way bill is not generated under sub-rule (2) and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01:
Provided that the registered person or, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees:
Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule:
Provided also that where the goods are transported for a distance of upto fifty kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case may be, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.
Explanation 1.–For the purposes of this sub-rule, where the goods are supplied by anunregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.
Explanation 2.- The e-way bill shall not be valid for movement of goods by roadunless the information in Part-B of FORM GST EWB-01 has been furnished except in the case of movements covered under the third proviso to sub-rule (3) and the proviso to sub-rule(5).
(4) Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.
(5) Where the goods are transferred from one conveyance to another, the consignor or the recipient, who has provided information in Part A of the FORM GST EWB-01, or the transporter shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in Part B of FORM GST EWB-01:
Provided that where the goods are transported for a distance of upto fifty kilometers within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of the conveyance may not be updated in the e-way bill.
(5A) The consignor or the recipient, who has furnished the information in Part A of FORMGST EWB-01, or the transporter, may assign the e-way bill number to another registered orenrolled transporter for updating the information in Part B of FORM GST EWB-01 for further movement of the consignment:
Provided that after the details of the conveyance have been updated by the transporter in Part B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished the information in Part A of FORM GST EWB-01 shall not be allowed to assign the e-way bill number to another transporter.
(6) After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 maybe generated by him on the said common portal prior to the movement of goods.
(7) Where the consignor or the consignee has not generated the e-way bill in FORM GST EWB-01 and the aggregate of the consignment value of goods carried in the conveyance is more than fifty thousand rupees, the transporter, except in case of transportation of goods by railways, air and vessel, shall, in respect of inter-State supply, generate the e-way bill in FORM GST EWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, andmay also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods:
Provided that where the goods to be transported are supplied through an e-commerce operator or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency.
(8) The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing the details in FORM GSTR-1:
Provided that when the information has been furnished by an unregistered supplier or an unregistered recipient in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the e-mail is available.
(9) Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B:
Provided further that the unique number generated under sub-rule (1) shall be valid for a period of fifteen days for updation of Part B of FORM GST EWB-01.
(10) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance, within the country, the goods have to be transported, as mentioned in column (2) of the said Table:-
| Sl. No. | Distance | Validity period |
| (1) | (2) | (3) |
| 1. | Upto 100 km. | One day in cases other than Over Dimensional Cargo[or multi modal shipment in which at least one leg involves transport by ship] Note No. 256 |
| 2. | For every 100 km. or part there of there after | One additional day in cases other than Over Dimensional Cargo[or multi modal shipment in which at least one leg involves transport by ship] Note No. 257 |
| 3. | Upto 20 km | One day in case of Over Dimensional Cargo[or multi modal shipment in which at least one leg involves transport by ship] Note No. 258 |
| 4. | For every 20 km. or part there of there after | One additional day in case of Over Dimensional Cargo [or multi modal shipment in which at least one leg involves transport by ship] Note No. 259: |
Provided that the Commissioner may, on the recommendations of the Council, by notification, extend the validity period of an e-way bill for certain categories of goods as may be specified therein:
Provided further that where, under circumstances of an exceptional nature, including trans-shipment, the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period after updating the details in Part B of FORM GST EWB-01, if required.
[Provided also that the validity of the e-way bill may be extended within eight hours from the time of its expiry.] Note No. 260
Explanation 1.—For the purposes of this rule, the―relevant date‖shall mean the date on whichthe e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill.
Explanation 2.— For the purposes of this rule, the expression ―Over Dimensional Cargo‖ shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 (59 of 1988).
(11) The details of the e-way bill generated under this rule shall be made available to the-
(a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the recipient or the transporter; or
(b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the transporter, on the common portal, and the supplier or the recipient, as the case may be, shall communicate his acceptance or rejection of the consignment covered by the e-way bill.
(12) Where the person to whom the information specified in sub-rule (11) has been made available does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, or the time of delivery of goods whichever is earlier, it shall be deemed that he has accepted the said details.
(13) The e-way bill generated under this rule or under rule 138 of the Goods and Services Tax Rules of any State or Union territory shall be valid in every State and Union territory.
(14) Notwithstanding anything contained in this rule, no e-way bill is required to be generated—
(a) where the goods being transported are specified in Annexure;
(b) where the goods are being transported by a non-motorised conveyance;
(c) where the goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
(d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the State or Union territory Goods and Services Tax Rules in that particular State or Union territory;
(e) where the goods, other than de-oiled cake, being transported, are specified in the Schedule appended to notification No. 2/2017- Central tax (Rate) dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 674 (E) dated the 28th June, 2017 as amended from time to time;
(f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel;
(g) where the supply of goods being transported is treated as no supply under Schedule III of the Act;
(h) where the goods are being transported—
(i) under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another customs station or customs port, or
(ii) under customs supervision or under customs seal;
(i) where the goods being transported are transit cargo from or to Nepal or Bhutan;
(j) where the goods being transported are exempt from tax under notification No. 7/2017-Central Tax (Rate), dated 28th June 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 679(E)dated the 28th June, 2017 as amended from time to time and notification No. 26/2017-Central Tax (Rate), dated the 21st September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1181(E) dated the 21st September, 2017 as amended from time to time;
(k) any movement of goods caused by defence formation under Ministry of defence as a consignor or consignee;
(l) where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail;
(m) where empty cargo containers are being transported; and
(n) where the goods are being transported upto a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55.
(o) [where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.] Note No. 261
Explanation. – The facility of generation, cancellation, updation and assignment of e-way bill shall be made available through SMS to the supplier, recipient and the transporter, as the case may be.
ANNEXURE
[(See rule 138 (14)]
| S. No. | Description of Goods |
| (1) | (2) |
| 1. | Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers |
| 2. | Kerosene oil sold under PDS |
| 3. | Postal baggage transported by Department of Posts |
| 4. | Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71) |
| 5. | Jewellery, goldsmiths‘ and silversmiths‘ wares and other articles (Chapter 71) |
| 6. | Currency |
| 7. | Used personal and household effects |
| 8. | Coral, unworked (0508) and worked coral (9601) |
Rule 138 (as inserted vide Notf no. 27/2017- CT dt. 30.08.2017
138.Information to be furnished prior to commencement of movement of goods and generation of e-way bill.-
(1) shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01, electronically, on the common portal.
[Provided that where goods are sent by a principal located in one State to a job worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment:
Provided further that where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.
Explanation – For the purposes of this rule, the expression ―handicraft goods‖ has the meaning as assigned to it in the Government of India, Ministry of Finance, notification No.32/2017-Central Tax dated 15.09.2017 published in the Gazette vide number G.S.R 1158 (E)] Note No. 264
(2) Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or by railways or by air or by vessel, the said person or the recipient may generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.
(3) Where the e-way bill is not generated under sub-rule (2) and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01:
Provided that the registered person or, as the case may be, the transporter may, at his option, generate and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees:
Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule:
Provided also that where the goods are transported for a distance of less than ten kilo metres within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.
Explanation 1.– For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.
Explanation 2.-The information in Part A of FORM GST EWB-01 shall be furnished by the consignor or the recipient of the supply as consignee where the goods are transported by railways or by air or by vessel.
(4) Upon generation of the e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal.
(5) Any transporter transferring goods from one conveyance to another in the course of transit shall, before such transfer and further movement of goods, update the details of conveyance in the e-way bill on the common portal in FORM GST EWB-01:
Provided that where the goods are transported for a distance of less than ten kilometres within the State or Union territory from the place of business of the transporter finally to the place of business of the consignee, the details of conveyance may not be updated in the e-way bill.
(6) After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 may be generated by him on the said common portal prior to the movement of goods.
(7) Where the consignor or the consignee has not generated FORM GST EWB-01 in accordance with the provisions of sub-rule (1) and the value of goods carried in the conveyance is more than fifty thousand rupees, the transporter shall generate FORM GSTEWB-01 on the basis of invoice or bill of supply or delivery challan, as the case may be, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods.
(8) The information furnished in Part A of FORM GST EWB-01 shall be made available to the registered supplier on the common portal who may utilize the same for furnishing details in FORM GSTR-1:
Provided that when the information has been furnished by an unregistered supplier in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the e-mail is available.
(9) Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within 24 hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B.
(10) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance the goods have to be transported, as mentioned in column (2) of the said Table: .
| Sr. no. | Distance | Validity period |
| (1) | (2) | (3) |
| 1. | Upto 100 km | One day |
| 2. | For every 100 km or part thereof thereafter | One additional day |
Provided that the Commissioner may, by notification, extend the validity period of e-way bill for certain categories of goods as may be specified therein:
Provided further that where, under circumstances of an exceptional nature, the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in Part B of FORM GSTEWB-01.
Explanation.—For the purposes of this rule, the ―relevant date‖ shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as twenty-four hours.
(11) The details of e-way bill generated under sub-rule (1) shall be made available to the recipient, if registered, on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill.
(12) Where the recipient referred to in sub-rule (11) does not communicate his acceptance or rejection within seventy two hours of the details being made available to him on the common portal, it shall be deemed that he has accepted the said details.
(13) The e-way bill generated under this rule or under rule 138 of the Goods and Services Tax Rules of any State shall be valid in every State and Union territory.
(14) Notwithstanding anything contained in this rule, no e-way bill is required to be generated—
(a) where the goods being transported are specified in Annexure;
(b) where the goods are being transported by a non-motorised conveyance;
(c) where the goods are being transported from the port, airport, aircargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs; and
(d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the Goods and Services Tax Rules of the concerned State.
Explanation. – The facility of generation and cancellation of e-way bill may also be made available through SMS.
Rules 138A to 138D, as inserted vide Notf. No. 27/2017-Central Tax, dated 30.08.2017 and amended vide Notf. No. 3/2018, dated 23.01.2018
138A. Documents and devices to be carried by a person-in-charge of a conveyance.-
(1) The person in charge of a conveyance shall carry—
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner.
(2) A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading.
(3) Where the registered person uploads the invoice under sub-rule (2), the information in Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.
(4) The Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Deviceprior to the movement of goods.
(5) Notwithstanding anything contained in clause (b) of sub-rule (1), where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill-
(a) tax invoice or bill of supply or bill of entry; or
(b) a delivery challan, where the goods are transported for reasons other than by way of supply.
138B. Verification of documents and conveyances.-
(1) The Commissioner or an officer empowered by him in this behalf may authorise the proper officer to intercept any conveyance to verify the e-way bill or the e-way bill number in physical form for all inter-State and intra-State movement of goods.
(2) The Commissioner shall get Radio Frequency Identification Device readers installed at places where the verification of movement of goods is required to be carried out and verification of movement of vehicles shall be done through such device readers where the e-way bill has been mapped with the said device
(3) The physical verification of conveyances shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf:
Provided that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any other officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.
138C. Inspection and verification of goods. –
(1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.
(2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless a specific information relating to evasion of tax is made available subsequently.
138D. Facility for uploading information regarding detention of vehicle.-Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal allowed to furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who,—
(a) being a person paying tax under section 10[or availing the benefit of notification of the Government of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 189, dated the 7th March, 2019,] Note No. 265, has not furnished the [statement in FORM GST CMP-08] Note No. 266 for two consecutive [quarters] Note No. 267; or
(b) being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two months:
Provided that the Commissioner may, [on receipt of an application from a registered person in FORM GST EWB-05,] Note No. 268 on sufficient cause being shown and for reasons to be recorded in writing, by order, [in FORM GST EWB-06] Note No. 269 allow furnishing of the said information in PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified by him:
Provided further that no order rejecting the request of such person to furnish the information in PART A of FORM GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable opportunity of being heard:
Provided also that the permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.
Explanation:– For the purposes of this rule, the expression ―Commissioner‖ shall mean the jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).] Note No. 270
[Explanation. – For the purposes of this Chapter, the expressions ‗transported by railways‘, ‗transportation of goods by railways‘, ‗transport of goods by rail‘ and ‗movement of goods by rail‘ does not include cases where leasing of parcel space by Railways takes place.‖.] Note No. 271
[(c) being a person other than a person specified in clause (a), has not furnished the statement of outward supplies for any two months or quarters, as the case may be.] Note No. 272
Sec 69. Power to arrest
(1) Where the Commissioner has reasons to believe that a person has committed anyoffence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) ofsection 132 which is punishable under clause (i) or (ii) of sub-section (1), or sub- section(2) of the said section, he may, by order, authorise any officer of central tax to arrest suchperson.
(2) Where a person is arrested under sub-section (1) for an offence specified under subsection(5) of section 132, the officer authorised to arrest the person shall inform suchperson of the grounds of arrest and produce him before a Magistrate within twenty-fourhours.
(3) Subject to the provisions of the Code of Criminal Procedure, 1973, ––
(a) where a person is arrested under sub-section (1) for any offence specified under subsection(4) of section 132, he shall be admitted to bail or in default of bail, forwarded tothe custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner or the Assistant Commissioner shall, for the purpose of releasing an arrested person on bail orotherwise, have the same powers and be subject to the same provisions as an officer-inchargeof a police station.
Sec 70. Power to summon persons to give evidence and produce documents
(1) The proper officer under this Act shall have power to summon any person whoseattendance he considers necessary either to give evidence or to produce a document orany other thing in any inquiry in the same manner, as provided in the case of a civil courtunder the provisions of the Code of Civil Procedure, 1908.
(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a “judicialproceedings” within the meaning of section 193 and section 228 of the Indian PenalCode.
Rules related to Sec 70 : Rule 132
132. Power to summon persons to give evidence and produce documents.-
(1) The [Authority,] Note No. 240 Director General of [Anti-profiteering] Note No. 241, or an officer authorised by him in this behalf, shall be deemed to be the proper officer to exercise the power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing under section 70 and shall have power in any inquiry in the same manner, as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).
(2) Every such inquiry referred to in sub-rule (1) shall be deemed to be a judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860).
Sec 71. Access to business premises
(1) Any officer under this Act, authorised by the proper officer not below the rank of JointCommissioner, shall have access to any place of business of a registered person toinspect books of account, documents, computers, computer programs, computersoftware whether installed in a computer or otherwise and such other things as he mayrequire and which may be available at such place, for the purposes of carrying out anyaudit, scrutiny, verification and checks as may be necessary to safeguard the interest ofrevenue.
(2) Every person in charge of place referred to in sub-section (1) shall, on demand, makeavailable to the officer authorised under sub-section (1) or the audit party deputed bythe proper officer or a cost accountant or chartered accountant nominated undersection 66—
(i) such records as prepared or maintained by the registered person and declared to theproper officer in such manner as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial accounts, duly audited, wherever required;
(iv) cost audit report, if any, under section 148 of the Companies Act, 2013;
(v) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961;And
(vi) any other relevant record, for the scrutiny by the officer or audit party or thechartered accountant or cost accountant within a period not exceeding fifteen workingdays from the day when such demand is made, or such further period as may be allowedby the said officer or the audit party or the chartered accountant or cost accountant.
Sec 72. Officers to assist proper officers
(1) All officers of Police, Railways, Customs, and those officers engaged in the collectionof land revenue, including village officers, officers of State tax and officers of Unionterritory tax shall assist the proper officers in the implementation of this Act.(2) The Government may, by notification, empower and require any other class ofofficers to assist the proper officers in the implementation of this Act when called uponto do so by the Commissioner.
Chapter-XV
Demand and Recovery
| Section | Rules | Rules related | Sections related |
| 73. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful misstatement or suppression of facts | 142. Notice and order for demand of amounts payable under the Act
142A. Procedure for recovery of dues under existing laws 143. Recovery by deduction from any money owed 144. Recovery by saleof goods under the control of proper officer 145. Recovery from a third person 146. Recovery through execution of a decree, etc. 147. Recovery by sale of movable or immovable property 148. Prohibition against bidding or purchase by officer 149. Prohibition against sale on Holidays 150. Assistance by police 151. Attachment of debts and shares, etc. 152. Attachment of property in custody of courts or Public Officer 153. Attachment of interest in Partnership 154. Disposal of proceeds of sale of goods and movable or immovable property 155. Recovery through land revenue authority 156. Recovery through court 157. Recovery from surety 158. Payment of tax and other amounts in instalments |
142 | |
| 74. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts | 142 | ||
| 75. General provisions relating to determination of tax | |||
| 76. Tax collected but not paid to Government | 142 | ||
| 77. Tax wrongfully collected and paid to Central Government or State Government | |||
| 78. Initiation of recovery proceedings | |||
| 79. Recovery of tax | 143-157 | ||
| 80. Payment of tax and other amount in instalments | 158 | ||
| 81. Transfer of property to be void in certain cases | |||
| 82. Tax to be first charge on property | |||
| 83. Provisional attachment to protect revenue in certain cases | 159 | 62,63,64,57,73,74 | |
| 84. Continuation and validation of certain recovery proceedings | 161 |
Sec 73. Determination of tax not paid or short paid or erroneously refunded or inputtax credit wrongly availed or utilised for any reason other than fraud or any willful misstatement or suppression of facts.
(1) Where it appears to the proper officer that any tax has not been paid or short paid orerroneously refunded, or where input tax credit has been wrongly availed or utilized forany reason, other than the reason of fraud or any wilful-misstatement or suppression offacts to evade tax, he shall serve notice on the person chargeable with tax which has notbeen so paid or which has been so short paid or to whom the refund has erroneouslybeen made, or who has wrongly availed or utilised input tax credit, requiring him to showcause as to why he should not pay the amount specified in the notice along with interestpayable thereon under section 50 and a penalty leviable under the provisions of this Actor the rules made thereunder.
(2) The proper officer shall issue the notice under sub-section (1) at least three monthsprior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the properofficer may serve a statement, containing the details of tax not paid or short paid orerroneously refunded or input tax credit wrongly availed or utilised for such periodsother than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on such personunder sub-section (1), subject to the condition that the grounds relied upon for such taxperiods other than those covered under sub-section (1) are the same as are mentionedin the earlier notice.
(5) The person chargeable with tax may, before service of notice under sub-section (1) or,as the case may be, the statement under sub-section (3), pay the amount of tax alongwith interest payable thereon under section 50 on the basis of his own ascertainment ofsuch tax or the tax as ascertained by the proper officer and inform the proper officer inwriting of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice undersub- section (1) or, as the case may be, the statement under sub-section (3), in respect ofthe tax so paid or any penalty payable under the provisions of this Act or the rules madethere under.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5)falls short of the amount actually payable, he shall proceed to issue the notice asprovided for in sub-section (1) in respect of such amount which falls short of the amountactually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) paysthe said tax along with interest payable under section 50 within thirty days of issue ofshow cause notice, no penalty shall be payable and all proceedings in respect of the saidnotice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by personchargeable with tax, determine the amount of tax, interest and a penalty equivalent toten per cent. of tax or ten thousand rupees, whichever is higher, due from such personand issue an order.
(10) The proper officer shall issue the order under sub-section (9) within three years fromthe due date for furnishing of annual return for the financial year to which the tax notpaid or short paid or input tax credit wrongly availed or utilised relates to or within threeyears from the date of erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penaltyunder sub-section (9) shall be payable where any amount of self-assessed tax or anyamount collected as tax has not been paid within a period of thirty days from the duedate of payment of such tax.
Rules Related to Sec 73 : Rule 142
142. Notice and order for demand of amounts payable under the Act.-
(1) The proper officer shall serve, along with the
(a) notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01,
(b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable.
[(1A) The proper officer shall, before service of notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be, shall communicate the details of any tax, interest and penalty as ascertained by the said officer, in Part A of FORM GST DRC-01A.] Note No. 274;
(2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act [whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A),] Note No. 275 he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC–04.
[(2A) Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in Part B of FORM GST DRC-01A.] Note No. 276
(3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of section 74 within thirty days of the service of a notice under sub-rule (1), or where the person concerned makes payment of the amount referred to in sub-section (1) of section 129 within fourteen days of detention or seizure of the goods and conveyance, he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice.
(4) The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 or the reply to any notice issued under any section whose summary has been uploaded electronically in FORM GST DRC-01 under sub-rule (1) shall be furnished in FORM GST DRC-06.
(5) A summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax.
(6) The order referred to in sub-rule (5) shall be treated as the notice for recovery.
(7) Where a rectification of the order has been passed in accordance with the provisions of section 161 or where an order uploaded on the system has been withdrawn, a summary of the rectification order or of the withdrawal order shall be uploaded electronically by the proper officer in FORM GST DRC-08.] Note No. 277
142. Notice and order for demand of amounts payable under the Act.-
(1) The proper officer shall serve, along with the
(a) notice under sub-section (1) of section 73 or sub-section (1) of section 74 or sub-section (2) of section 76, a summary thereof electronically in FORM GST DRC-01,
(b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable.
(2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC–04.
(3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of section 74 within thirty days of the service of a notice under sub-rule (1), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice.
(4) The representation referred to in sub-section (9) of section 73 or sub-section (9) of section 74 or sub-section (3) of section 76 shall be in FORM GST DRC-06.
(5) A summary of the order issued under sub-section (9) of section 73 or sub-section (9) of section 74 [or sub-section (12) of section 75]Note No. 277 or sub-section (3) of section 76 [or section 125] Note No. 277 [or section 129 or section 130] Note No. 277 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax.
(6) The order referred to in sub-rule (5) shall be treated as the notice for recovery.
(7) Any rectification of the order, in accordance with the provisions of section 161, shall be made by the proper officer in FORM GST DRC-08.‖
[142A. Procedure for recovery of dues under existing laws. –
(1) A summary of order issued under any of the existing laws creating demand of tax, interest, penalty, fee or any other dues which becomes recoverable consequent to proceedings launched under the existing law before, on or after the appointed day shall, unless recovered under that law, be recovered under the Act and may be uploaded in FORM GST DRC-07A electronically on the common portal for recovery under the Act and the demand of the order shall be posted in Part II of Electronic Liability Register in FORM GST PMT-01.
(2) Where the demand of an order uploaded under sub-rule (1) is rectified or modified or quashed in any proceedings, including in appeal, review or revision, or the recovery is made under the existing laws, a summary thereof shall be uploaded on the common portal in FORM GST DRC-08A and Part II of Electronic Liability Register in FORM GST PMT-01 shall be updated accordingly.] Note No. 278
Sec 74. Determination of tax not paid or short paid or erroneously refunded or inputtax credit wrongly availed or utilised by reason of fraud or any willful misstatementor suppression of facts
(1) Where it appears to the proper officer that any tax has not been paid or short paid orerroneously refunded or where input tax credit has been wrongly availed or utilised byreason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shallserve notice on the person chargeable with tax which has not been so paid or which hasbeen so short paid or to whom the refund has erroneously been made, or who haswrongly availed or utilised input tax credit, requiring him to show cause as to why heshould not pay the amount specified in the notice along with interest payable thereonunder section 50 and a penalty equivalent to the tax specified in the notice.
(2) The proper officer shall issue the notice under sub-section (1) at least six monthsprior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the properofficer may serve a statement, containing the details of tax not paid or short paid orerroneously refunded or input tax credit wrongly availed or utilised for such periodsother than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be service of noticeunder sub-section (1) of section 73, subject to the condition that the grounds relied uponin the said statement, except the ground of fraud, or any wilful-misstatement orsuppression of facts to evade tax, for periods other than those covered under subsection(1) are the same as are mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under sub-section (1),pay the amount of tax along with interest payable under section 50 and a penaltyequivalent to fifteen per cent. of such tax on the basis of his own ascertainment of suchtax or the tax as ascertained by the proper officer and inform the proper officer inwriting of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice undersub- section (1), in respect of the tax so paid or any penalty payable under the provisionsof this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under sub-section (5)falls short of the amount actually payable, he shall proceed to issue the notice asprovided for in sub-section (1) in respect of such amount which falls short of the amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) pays the said tax alongwith interest payable under section 50 and a penalty equivalent to twenty-five per cent of such tax within thirty days of issue of the notice, all proceedings in respect of the saidnotice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made by theperson chargeable with tax, determine the amount of tax, interest and penalty due fromsuch person and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within a period of fiveyears from the due date for furnishing of annual return for the financial year to whichthe tax not paid or short paid or input tax credit wrongly availed or utilised relates to orwithin five years from the date of erroneous refund.
(11) Where any person served with an order issued under sub-section (9) pays the taxalong with interest payable thereon under section 50 and a penalty equivalent to fiftyper cent. of such tax within thirty days of communication of the order, all proceedings inrespect of the said notice shall be deemed to be concluded.
Explanation 1.- For the purposes of section 73 and this section, —
(i) the expression “all proceedings in respect of the said notice” shall not includeproceedings under section 132;
(ii) where the notice under the same proceedings is issued to the main person liable topay tax and some other persons, and such proceedings against the main person havebeen concluded under section 73 or section 74, the proceedings against all the personsliable to pay penalty under sections 122, 125, 129 and 130 are deemed to be concluded.
Explanation 2.––For the purposes of this Act, the expression “suppression” shall meannon- declaration of facts or information which a taxable person is required to declare inthe return, statement, report or any other document furnished under this Act or therules made there under, or failure to furnish any information on being asked for, inwriting, by the proper officer.
Rules related to Sec 74: rule 142 ( See below Sec 73, Page No 276)
Sec 75. General provisions relating to determination of tax
(1) Where the service of notice or issuance of order is stayed by an order of a court orAppellate Tribunal, the period of such stay shall be excluded in computing the periodspecified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section74, as the case may be.
(2) Where any Appellate Authority or Appellate Tribunal or court concludes that thenotice issued under sub-section (1) of section 74 is not sustainable for the reason thatthe charges of fraud or any wilful-misstatement or suppression of facts to evade tax hasnot been established against the person to whom the notice was issued, the properofficer shall determine the tax payable by such person, deeming as if the notice wereissued under sub-section (1) of section 73.
(3) Where any order is required to be issued in pursuance of the direction of theAppellate Authority or Appellate Tribunal or a court, such order shall be issued withintwo years from the date of communication of the said direction.
(4) An opportunity of hearing shall be granted where a request is received in writing fromthe person chargeable with tax or penalty, or where any adverse decision iscontemplated against such person.
(5) The proper officer shall, if sufficient cause is shown by the person chargeable withtax, grant time to the said person and adjourn the hearing for reasons to be recorded inwriting:
Provided that no such adjournment shall be granted for more than three times to aperson during the proceedings.
(6) The proper officer, in his order, shall set out the relevant facts and the basis of hisdecision.
(7) The amount of tax, interest and penalty demanded in the order shall not be in excessof the amount specified in the notice and no demand shall be confirmed on the groundsother than the grounds specified in the notice.
(8) Where the Appellate Authority or Appellate Tribunal or court modifies the amount oftax determined by the proper officer, the amount of interest and penalty shall standmodified accordingly, taking into account the amount of tax so modified.
(9) The interest on the tax short paid or not paid shall be payable whether or notspecified in the order determining the tax liability.
(10) The adjudication proceedings shall be deemed to be concluded, if the order is notissued within three years as provided for in sub-section (10) of section 73 or within fiveyears as provided for in sub-section (10) of section 74.
(11) An issue on which the Appellate Authority or the Appellate Tribunal or the HighCourt has given its decision which is prejudicial to the interest of revenue in some otherproceedings and an appeal to the Appellate Tribunal or the High Court or the SupremeCourt against such decision of the Appellate Authority or the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of theAppellate Authority and that of the Appellate Tribunal or the date of decision of theAppellate Tribunal and that of the High Court or the date of the decision of the HighCourt and that of the Supreme Court shall be excluded in computing the period referredto in sub-section (10) of section 73 or sub-section (10) of section 74 where proceedingsare initiated by way of issue of a show cause notice under the said sections.
(12) Notwithstanding anything contained in section 73 or section 74, where any amountof self-assessed tax in accordance with a return furnished under section 39 remainsunpaid, either wholly or partly, or any amount of interest payable on such tax remainsunpaid, the same shall be recovered under the provisions of section 79.
(13) Where any penalty is imposed under section 73 or section 74, no penalty for thesame act or omission shall be imposed on the same person under any other provision of this Act.
Sec 76. Tax collected but not paid to Government
(1) Notwithstanding anything to the contrary contained in any order or direction of anyAppellate Authority or Appellate Tribunal or court or in any other provisions of this Act orthe rules made thereunder or any other law for the time being in force, every personwho has collected from any other person any amount as representing the tax under thisAct, and has not paid the said amount to the Government, shall forthwith pay the saidamount to the Government, irrespective of whether the supplies in respect of whichsuch amount was collected are taxable or not.
(2) Where any amount is required to be paid to the Government under sub-section (1),and which has not been so paid, the proper officer may serve on the person liable to paysuch amount a notice requiring him to show cause as to why the said amount asspecified in the notice, should not be paid by him to the Government and why a penaltyequivalent to the amount specified in the notice should not be imposed on him underthe provisions of this Act.
(3) The proper officer shall, after considering the representation, if any, made by theperson on whom the notice is served under sub-section (2), determine the amount duefrom such person and thereupon such person shall pay the amount so determined.
(4) The person referred to in sub-section (1) shall in addition to paying the amountreferred to in sub-section (1) or sub-section (3) also be liable to pay interest thereon atthe rate specified under section 50 from the date such amount was collected by him tothe date such amount is paid by him to the Government.
(5) An opportunity of hearing shall be granted where a request is received in writing fromthe person to whom the notice was issued to show cause.
(6) The proper officer shall issue an order within one year from the date of issue of thenotice.
(7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal,the period of such stay shall be excluded in computing the period of one year.
(8) The proper officer, in his order, shall set out the relevant facts and the basis of hisdecision.
(9) The amount paid to the Government under sub-section (1) or sub-section (3) shall beadjusted against the tax payable, if any, by the person in relation to the supplies referredto in sub-section (1).
(10) Where any surplus is left after the adjustment under sub-section (9), the amount ofsuch surplus shall either be credited to the Fund or refunded to the person who hasborne the incidence of such amount.
(11) The person who has borne the incidence of the amount, may apply for the refund ofthe same in accordance with the provisions of section 54.
Rules related to Sec 76: rule 142 ( See below Sec 73, Page No 276)
Sec 77. Tax wrongfully collected and paid to Central Government or State Government
(1) A registered person who has paid the Central tax and State tax or, as the case may be,the central tax and the Union territory tax on a transaction considered by him to be anintra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions asmay be prescribed.
(2) A registered person who has paid integrated tax on a transaction considered by himto be an inter-State supply, but which is subsequently held to be an intra-State supply,shall not be required to pay any interest on the amount of central tax and State tax or, asthe case may be, the central tax and the Union territory tax payable.
Sec 78. Initiation of recovery proceedings
Any amount payable by a taxable person in pursuance of an order passed under this Actshall be paid by such person within a period of three months from the date of service ofsuch order failing which recovery proceedings shall be initiated:
Provided that where the proper officer considers it expedient in the interest of revenue,he may, for reasons to be recorded in writing, require the said taxable person to makesuch payment within such period less than a period of three months as may be specifiedby him.
Sec 79. Recovery of tax
(1) Where any amount payable by a person to the Government under any of theprovisions of this Act or the rules made thereunder is not paid, the proper officer shallproceed to recover the amount by one or more of the following modes, namely: ––
(a) the proper officer may deduct or may require any other specified officer to deductthe amount so payable from any money owing to such person which may be under thecontrol of the proper officer or such other specified officer;
(b) the proper officer may recover or may require any other specified officer to recoverthe amount so payable by detaining and selling any goods belonging to such personwhich are under the control of the proper officer or such other specified officer;
(c)(i) the proper officer may, by a notice in writing, require any other person from whommoney is due or may become due to such person or who holds or may subsequentlyhold money for or on account of such person, to pay to the Government either forthwithupon the money becoming due or being held, or within the time specified in the noticenot being before the money becomes due or is held, so much of the money as issufficient to pay the amount due from such person or the whole of the money when it isequal to or less than that amount;
(ii) every person to whom the notice is issued under sub-clause (i) shall be bound tocomply with such notice, and in particular, where any such notice is issued to a postoffice, banking company or an insurer, it shall not be necessary to produce any passbook, deposit receipt, policy or any other document for the purpose of any entry,endorsement or the like being made before payment is made, notwithstanding any rule,practice or requirement to the contrary;
(iii) in case the person to whom a notice under sub-clause (i) has been issued, fails tomake the payment in pursuance thereof to the Government, he shall be deemed to be adefaulter in respect of the amount specified in the notice and all the consequences ofthis Act or the rules made thereunder shall follow;
(iv) the officer issuing a notice under sub-clause (i) may, at any time, amend or revokesuch notice or extend the time for making any payment in pursuance of the notice;
(v) any person making any payment in compliance with a notice issued under sub-clause(i) shall be deemed to have made the payment under the authority of the person indefault and such payment being credited to the Government shall be deemed toconstitute a good and sufficient discharge of the liability of such person to the person indefault to the extent of the amount specified in the receipt;
(vi) any person discharging any liability to the person in default after service on him ofthe notice issued under sub-clause (i) shall be personally liable to the Government to theextent of the liability discharged or to the extent of the liability of the person in defaultfor tax, interest and penalty, whichever is less;
(vii) where a person on whom a notice is served under sub-clause (i) proves to thesatisfaction of the officer issuing the notice that the money demanded or any partthereof was not due to the person in default or that he did not hold any money for or onaccount of the person in default, at the time the notice was served on him, nor is themoney demanded or any part thereof, likely to become due to the said person or be heldfor or on account of such person, nothing contained in this section shall be deemed torequire the person on whom the notice has been served to pay to the Government anysuch money or part thereof;
(d) the proper officer may, in accordance with the rules to be made in this behalf,distrain any movable or immovable property belonging to or under the control of suchperson, and detain the same until the amount payable is paid; and in case, any part ofthe said amount payable or of the cost of the distress or keeping of the property,remains unpaid for a period of thirty days next after any such distress, may cause thesaid property to be sold and with the proceeds of such sale, may satisfy the amountpayable and the costs including cost of sale remaining unpaid and shall render thesurplus amount, if any, to such person;
(e) the proper officer may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person ownsany property or resides or carries on his business or to any officer authorised by theGovernment and the said Collector or the said officer, on receipt of such certificate, shall proceed to recover from such person the amount specified thereunder as if it were anarrear of land revenue;
(f) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, theproper officer may file an application to the appropriate Magistrate and such Magistrateshall proceed to recover from such person the amount specified thereunder as if it werea fine imposed by him.
(2) Where the terms of any bond or other instrument executed under this Act or anyrules or regulations made thereunder provide that any amount due under suchinstrument may be recovered in the manner laid down in sub-section (1), the amountmay, without prejudice to any other mode of recovery, be recovered in accordance withthe provisions of that sub-section.
(3) Where any amount of tax, interest or penalty is payable by a person to theGovernment under any of the provisions of this Act or the rules made thereunder andwhich remains unpaid, the proper officer of State tax or Union territory tax, during thecourse of recovery of said tax arrears, may recover the amount from the said person as ifit were an arrear of State tax or Union territory tax and credit the amount so recoveredto the account of the Government.
(4) Where the amount recovered under sub-section (3) is less than the amount due to theCentral Government and State Government, the amount to be credited to the account ofthe respective Governments shall be in proportion to the amount due to each suchGovernment.
[Explanation. — For the purposes of this section, the word person shall include “distinctpersons” as referred to in sub-section (4) or, as the case may be, sub- section (5) ofsection 25.] Note No. 75
Rules Related to Sec 79 : Rule 143 to 157
143. Recovery by deduction from any money owed.
Where any amount payable by a person (hereafter referred to in this rule as ―the defaulter‖) to the Government under any of the provisions of the Act or the rules made thereunder is not paid, the proper officer may require, in FORM GST DRC-09, a specified officer to deduct the amount from any money owing to such defaulter in accordance with the provisions of clause (a) of sub-section (1) of section 79.
Explanation.-For the purposes of this rule, ―specified officer‖ shall mean any officer of the Central Government or a State Government or the Government of a Union territory or a local authority, or of a Board or Corporation or a company owned or controlled, wholly or partly, by the Central Government or a State Government or the Government of a Union territory or a local authority.
144. Recovery by sale of goods under the control of proper officer.-
(1) Where any amount due from a defaulter is to be recovered by selling goods belonging to such person in accordance with the provisions of clause (b) of sub-section (1) of section 79, the proper officer shall prepare an inventory and estimate the market value of such goods and proceed to sell only so much of the goods as may be required for recovering the amount payable along with the administrative expenditure incurred on the recovery process.
(2) The said goods shall be sold through a process of auction, including e-auction, for which a notice shall be issued in FORM GST DRC-10 clearly indicating the goods to be sold and the purpose of sale.
(3) The last day for submission of bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (2):
Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith.
(4) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be.
(5) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12.
(6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods.
(7) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.
145. Recovery from a third person.-
(1) The proper officer may serve upon a person referred to in clause (c) of sub-section (1) of section 79 (hereafter referred to in this rule as ―the third person‖), a notice in FORM GST DRC-13 directing him to deposit the amount specified in the notice.
(2) Where the third person makes the payment of the amount specified in the notice issued under sub-rule (1), the proper officer shall issue a certificate in FORM GST DRC-14 to the third person clearly indicating the details of the liability so discharged.
146. Recovery through execution of a decree, etc.-
Where any amount is payable to the defaulter in the execution of a decree of a civil court for the payment of money or for sale in the enforcement of a mortgage or charge, the proper officer shall send a request in FORM GST DRC- 15 to the said court and the court shall, subject to the provisions of the Code of Civil Procedure, 1908 (5 of 1908), execute the attached decree, and credit the net proceeds for settlement of the amount recoverable.
147. Recovery by sale of movable or immovable property.-
(1) The proper officer shall prepare a list of movable and immovable property belonging to the defaulter, estimate their value as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC- 16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due:
Provided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151.
(2) The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the proper officer to that effect.
(3) Where the property subject to the attachment or distraint under sub-rule (1) is-
(a) an immovable property, the order of attachment or distraint shall be affixed on the said property and shall remain affixed till the confirmation of sale;
(b) a movable property, the proper officer shall seize the said property in accordance with the provisions of chapter XIV of the Act and the custody of the said property shall either be taken by the proper officer himself or an officer authorised by him.
(4) The property attached or distrained shall be sold through auction, including e-auction, for which a notice shall be issued in FORM GST DRC- 17 clearly indicating the property to be sold and the purpose of sale.
(5) Notwithstanding anything contained in the provision of this Chapter, where the property to be sold is a negotiable instrument or a share in a corporation, the proper officer may, instead of selling it by public auction, sell such instrument or a share through a broker and the said broker shall deposit to the Government so much of the proceeds of such sale, reduced by his commission, as may be required for the discharge of the amount under recovery and pay the amount remaining, if any, to the owner of such instrument or a share.
(6) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders or, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be.
(7) The last day for the submission of the bid or the date of the auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (4):
Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith.
(8) Where any claim is preferred or any objection is raised with regard to the attachment or distraint of any property on the ground that such property is not liable to such attachment or distraint, the proper officer shall investigate the claim or objection and may postpone the sale for such time as he may deem fit.
(9) The person making the claim or objection must adduce evidence to show that on the date of the order issued under sub-rule (1) he had some interest in, or was in possession of, the property in question under attachment or distraint.
(10) Where, upon investigation, the proper officer is satisfied that, for the reason stated in the claim or objection, such property was not, on the said date, in the possession of the defaulter or of any other person on his behalf or that, being in the possession of the defaulter on the said date, it was in his possession, not on his own account or as his own property, but on account of or in trust for any other person, or partly on his own account and partly on account of some other person, the proper officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or distraint.
(11) Where the proper officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction.
(12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of such notice and after the said payment is made, he shall issue a certificate in FORM GST DRC-12 specifying the details of the property, date of transfer, the details of the bidder and the amount paid and upon issuance of such certificate, the rights, title and interest in the property shall be deemed to be transferred to such bidder:
Provided that where the highest bid is made by more than one person and one of them is a co-owner of the property, he shall be deemed to be the successful bidder.
(13) Any amount, including stamp duty, tax or fee payable in respect of the transfer of the property specified in sub-rule (12), shall be paid to the Government by the person to whom the title in such property is transferred.
(14) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (4), the proper officer shall cancel the process of auction and release the goods.
(15) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.
148. Prohibition against bidding or purchase by officer.-
No officer or other person having any duty to perform in connection with any sale under the provisions of this Chapter shall, either directly or indirectly, bid for, acquire or attempt to acquire any interest in the property sold.
149. Prohibition against sale on holidays.-
No sale under the rules under the provision of this chapter shall take place on a Sunday or other general holidays recognized by the Government or on any day which has been notified by the Government to be a holiday for the area in which the sale is to take place.
150. Assistance by police.-
The proper officer may seek such assistance from the officer-in-charge of the jurisdictional police station as may be necessary in the discharge of his duties and the said officer-in-charge shall depute sufficient number of police officers for providing such assistance.
151. Attachment of debts and shares, etc.-
(1) A debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any court shall be attached by a written order in FORM GST DRC-16 prohibiting.-
(a) in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof until the receipt of a further order from the proper officer;
(b) in the case of a share, the person in whose name the share may be standing from transferring the same or receiving any dividend thereon;
(c) in the case of any other movable property, the person in possession of the same from giving it to the defaulter.
(2) A copy of such order shall be affixed on some conspicuous part of the office of the proper officer, and another copy shall be sent, in the case of debt, to the debtor, and in the case of shares, to the registered address of the corporation and in the case of other movable property, to the person in possession of the same.
(3) A debtor, prohibited under clause (a) of sub-rule (1), may pay the amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter.
152. Attachment of property in custody of courts or Public Officer.-
Where the property to be attached is in the custody of any court or Public Officer, the proper officer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable.
153. Attachment of interest in partnership.-
(1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing, and of any other money which may become due to him in respect of the partnership, and direct accounts and enquiries and make an order for the sale of such interest or such other order as the circumstances of the case may require.
(2) The other partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same.
154. Disposal of proceeds of sale of goods and movable or immovable property.-
The amounts so realised from the sale of goods, movable or immovable property, for the recovery of dues from a defaulter shall,-
(a) first, be appropriated against the administrative cost of the recovery process;
(b) next, be appropriated against the amount to be recovered;
(c) next, be appropriated against any other amount due from the defaulter under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and (d) any balance, be paid to the defaulter.
155. Recovery through land revenue authority.-
Where an amount is to be recovered in accordance with the provisions of clause (e) of sub-section (1) of section 79, the proper officer shall send a certificate to the Collector or Deputy Commissioner of the district or any other officer authorised in this behalf in FORM GST DRC-18 to recover from the person concerned, the amount specified in the certificate as if it were an arrear of land revenue.
156. Recovery through court.-
Where an amount is to be recovered as if it were a fine imposed under the Code of Criminal Procedure, 1973, the proper officer shall make an application before the appropriate Magistrate in accordance with the provisions of clause (f) of sub-section (1) of section 79 in FORM GST DRC- 19 to recover from the person concerned, the amount specified thereunder as if it were a fine imposed by him.
157. Recovery from surety.-
Where any person has become surety for the amount due by the defaulter, he may be proceeded against under this Chapter as if he were the defaulter.
Sec 80. Payment of tax and other amount in instalments
On an application filed by a taxable person, the Commissioner may, for reasons to berecorded in writing, extend the time for payment or allow payment of any amount dueunder this Act, other than the amount due as per the liability self-assessed in any return,by such person in monthly instalments not exceeding twenty four, subject to payment ofinterest under section 50 and subject to such conditions and limitations as may beprescribed:
Provided that where there is default in payment of any one instalment on its due date,the whole outstanding balance payable on such date shall become due and payableforthwith and shall, without any further notice being served on the person, be liable forrecovery.
Rules related to Sec 80 : Rule 158
158. Payment of tax and other amounts in instalments.-
(1) On an application filed electronically by a taxable person, in FORM GST DRC- 20, seeking extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in instalments in accordance with the provisions of section 80, the Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said amount.
(2) Upon consideration of the request of the taxable person and the report of the jurisdictional officer, the Commissioner may issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment and/or to pay the amount in such monthly instalments, not exceeding twenty-four, as he may deem fit.
(3) The facility referred to in sub-rule (2) shall not be allowed where-
(a) the taxable person has already defaulted on the payment of any amount under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017, for which the recovery process is on;
(b) the taxable person has not been allowed to make payment in instalments in the preceding financial year under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017;
(c) the amount for which instalment facility is sought is less than twenty–five thousand rupees.
Sec 81. Transfer of property to be void in certain cases
Where a person, after any amount has become due from him, creates a charge on orparts with the property belonging to him or in his possession by way of sale, mortgage,exchange, or any other mode of transfer whatsoever of any of his properties in favour ofany other person with the intention of defrauding the Government revenue, such chargeor transfer shall be void as against any claim in respect of any tax or any other sumpayable by the said person:
Provided that, such charge or transfer shall not be void if it is made for adequateconsideration, in good faith and without notice of the pendency of such proceedingsunder this Act or without notice of such tax or other sum payable by the said person, orwith the previous permission of the proper officer.
Sec 82. Tax to be first charge on property
Notwithstanding anything to the contrary contained in any law for the time being inforce, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, anyamount payable by a taxable person or any other person on account of tax, interest orpenalty which he is liable to pay to the Government shall be a first charge on theproperty of such taxable person or such person.
Sec 83. Provisional attachment to protect revenue in certain cases
(1) Where during the pendency of any proceedings under section 62 or section 63 orsection 64 or section 67 or section 73 or section 74, the Commissioner is of the opinionthat for the purpose of protecting the interest of the Government revenue, it isnecessary so to do, he may, by order in writing attach provisionally any property,including bank account, belonging to the taxable person in such manner as may beprescribed.
(2) Every such provisional attachment shall cease to have effect after the expiry of aperiod of one year from the date of the order made under sub-section (1).
Rules related to Sec 83 : Rule 159
159. Provisional attachment of property.-
(1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC-22 to that effect mentioning therein, the details of property which is attached.
(2) The Commissioner shall send a copy of the order of attachment to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect.
(3) Where the property attached is of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such property or the amount that is or may become payable by the taxable person, whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC-23, on proof of payment.
(4) Where the taxable person fails to pay the amount referred to in sub-rule (3) in respect of the said property of perishable or hazardous nature, the Commissioner may dispose of such property and the amount realized thereby shall be adjusted against the tax, interest, penalty, fee or any other amount payable by the taxable person.
(5) Any person whose property is attached may, within seven days of the attachment under sub-rule (1), file an objection to the effect that the property attached was or is not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC- 23.
(6) The Commissioner may, upon being satisfied that the property was, or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23.
Sec 84. Continuation and validation of certain recovery proceedings
Where any notice of demand in respect of any tax, penalty, interest or any other amountpayable under this Act, (hereafter in this section referred to as “Government dues”), isserved upon any taxable person or any other person and any appeal or revisionapplication is filed or any other proceedings is initiated in respect of such Governmentdues, then––
(a) where such Government dues are enhanced in such appeal, revision or other proceedings, the Commissioner shall serve upon the taxable person or any other personanother notice of demand in respect of the amount by which such Government dues areenhanced and any recovery proceedings in relation to such Government dues as arecovered by the notice of demand served upon him before the disposal of such appeal,revision or other proceedings may, without the service of any fresh notice of demand, becontinued from the stage at which such proceedings stood immediately before suchdisposal;
(b) where such Government dues are reduced in such appeal, revision or in other proceedings––
(i) it shall not be necessary for the Commissioner to serve upon the taxable person afresh notice of demand;
(ii) the Commissioner shall give intimation of such reduction to him and to theappropriate authority with whom recovery proceedings is pending;
(iii) any recovery proceedings initiated on the basis of the demand served upon him priorto the disposal of such appeal, revision or other proceedings may be continued inrelation to the amount so reduced from the stage at which such proceedings stoodimmediately before such disposal.
Rules related to sec 84 : Rule 161
161. Continuation of certain recovery proceedings.-
The order for the reduction or enhancement of any demand under section 84 shall be issued in FORM GST DRC- 25.
Chapter-XVI
Liability to Pay in Certain Cases
| Section | Rules | Rules related | Sections related |
| 85.Liability in case of transfer of business | 19. Amendment of registration
20. Application for cancellation of registration 22. Cancellation of registration 41. Transfer of credit on sale, merger, amalgamation, lease or transfer of business 160. Recovery from company in liquidation |
||
| 86. Liability of agent and Principal | |||
| 87. Liability in case of amalgamation or merger of Companies | 41 | ||
| 88. Liability in case of company in liquidation | 160 | ||
| 89. Liability directors of private of company | |||
| 90. Liability of partners of a firm to pay tax | |||
| 91. Liability of guardians, trustees, etc. | |||
| 92. Liability of Court of Wards etc., | |||
| 93. Special provisions regarding liability to pay tax, interest or penalty in certain cases | |||
| 94. Liability in other cases |
Sec 85. Liability in case of transfer of business
(1) Where a taxable person, liable to pay tax under this Act, transfers his business inwhole or in part, by sale, gift, lease, leave and license, hire or in any other mannerwhatsoever, the taxable person and the person to whom the business is so transferredshall, jointly and severally, be liable wholly or to the extent of such transfer, to pay thetax, interest or any penalty due from the taxable person upto the time of such transfer,whether such tax, interest or penalty has been determined before such transfer, but hasremained unpaid or is determined thereafter.
(2) Where the transferee of a business referred to in sub-section (1) carries on suchbusiness either in his own name or in some other name, he shall be liable to pay tax onthe supply of goods or services or both effected by him with effect from the date of suchtransfer and shall, if he is a registered person under this Act, apply within the prescribedtime for amendment of his certificate of registration.
Sec 86. Liability of agent and principal
Where an agent supplies or receives any taxable goods on behalf of his principal, suchagent and his principal shall, jointly and severally, be liable to pay the tax payable onsuch goods under this Act.
Rules related to sec 86 : Rule 160
160. Recovery from company in liquidation.-
Where the company is under liquidation as specified in section 88, the Commissioner shall notify the liquidator for the recovery of any amount representing tax, interest, penalty or any other amount due under the Act in FORM GST DRC -24.
Sec 87. Liability in case of amalgamation or merger of Companies
(1) When two or more companies are amalgamated or merged in pursuance of an orderof court or of Tribunal or otherwise and the order is to take effect from a date earlier tothe date of the order and any two or more of such companies have supplied or receivedany goods or services or both to or from each other during the period commencing onthe date from which the order takes effect till the date of the order, then suchtransactions of supply and receipt shall be included in the turnover of supply or receiptof the respective companies and they shall be liable to pay tax accordingly.
(2) Notwithstanding anything contained in the said order, for the purposes of this Act, thesaid two or more companies shall be treated as distinct companies for the period up tothe date of the said order and the registration certificates of the said companies shall becancelled with effect from the date of the said order.
Rules Related to sec 87 : Rule 41
41. Transfer of credit on sale, merger, amalgamation, lease or transfer of a business.-
A registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or transfer or change in the ownership of business for any reason, furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in FORM GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee:
Provided that in the case of demerger, the input tax credit shall be apportioned in the ratio of the value of assets of the new units as specified in the demerger scheme.
[Explanation:- For the purpose of this sub-rule, it is hereby clarified that the ―value of assets‖ means the value of the entire assets of the business, whether or not input tax credit has been availed thereon.]50
(2) The transferor shall also submit a copy of a certificate issued by a practicing chartered accountant or cost accountant certifying that the sale, merger, de-merger, amalgamation, lease or transfer of business has been done with a specific provision for the transfer of liabilities.
(3) The transferee shall, on the common portal, accept the details so furnished by the transferor and, upon such acceptance, the un-utilized credit specified in FORM GST ITC-02 shall be credited to his electronic credit ledger.
(4) The inputs and capital goods so transferred shall be duly accounted for by the transferee in his books of account.
[Rule 41A. Transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory.-
(1) A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business, shall furnish within a period of thirty days from obtaining such separate registrations, the details in FORM GST ITC-02A electronically on the common portal, either directly or through a Facilitation Centre notified in this behalf by the Commissioner:
Provided that the input tax credit shall be transferred to the newly registered entities in the ratio of the value of assets held by them at the time of registration.
Explanation.- For the purposes of this sub-rule, it is hereby clarified that the ‗value of assets‘ means the value of the entire assets of the business whether or not input tax credit has been availed thereon.
(2) The newly registered person (transferee) shall, on the common portal, accept the details so furnished by the registered person (transferor) and, upon such acceptance, the unutilised input tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit ledger.]51
Sec 88. Liability in case of Company in liquidation
(1) When any company is being wound up whether under the orders of a court orTribunal or otherwise, every person appointed as receiver of any assets of a company(hereafter in this section referred to as the “liquidator”), shall, within thirty days after hisappointment, give intimation of his appointment to the Commissioner.
(2) The Commissioner shall, after making such inquiry or calling for such information ashe may deem fit, notify the liquidator within three months from the date on which hereceives intimation of the appointment of the liquidator, the amount which in theopinion of the Commissioner would be sufficient to provide for any tax, interest orpenalty which is then, or is likely thereafter to become, payable by the company.
(3) When any private company is wound up and any tax, interest or penalty determinedunder this Act on the company for any period, whether before or in the course of or afterits liquidation, cannot be recovered, then every person who was a director of suchcompany at any time during the period for which the tax was due shall, jointly andseverally, be liable for the payment of such tax, interest or penalty, unless he proves tothe satisfaction of the Commissioner that such non-recovery cannot be attributed to anygross neglect, misfeasance or breach of duty on his part in relation to the affairs of thecompany.
Sec 89. Liability of directors of Private Company
(1) Notwithstanding anything contained in the Companies Act, 2013, where any tax,interest or penalty due from a private company in respect of any supply of goods orservices or both for any period cannot be recovered, then, every person who was adirector of the private company during such period shall, jointly and severally, be liablefor the payment of such tax, interest or penalty unless he proves that the non-recoverycannot be attributed to any gross neglect, misfeasance or breach of duty on his part inrelation to the affairs of the company.
(2) Where a private company is converted into a public company and the tax, interest orpenalty in respect of any supply of goods or services or both for any period during whichsuch company was a private company cannot be recovered before such conversion,then, nothing contained in sub-section (1) shall apply to any person who was a director ofsuch private company in relation to any tax, interest or penalty in respect of such supplyof goods or services or both of such private company:
Provided that nothing contained in this sub-section shall apply to any personal penaltyimposed on such director.
Sec 90. Liability of partners of Firm to pay tax
Notwithstanding any contract to the contrary and any other law for the time being inforce, where any firm is liable to pay any tax, interest or penalty under this Act, the firmand each of the partners of the firm shall, jointly and severally, be liable for suchpayment:
Provided that where any partner retires from the firm, he or the firm, shall intimate thedate of retirement of the said partner to the Commissioner by a notice in that behalf inwriting and such partner shall be liable to pay tax, interest or penalty due up to the dateof his retirement whether determined or not, on that date:
Provided further that if no such intimation is given within one month from the date ofretirement, the liability of such partner under the first proviso shall continue until thedate on which such intimation is received by the Commissioner.
Sec 91. Liability of guardians, trustees, etc.
Where the business in respect of which any tax, interest or penalty is payable under thisAct is carried on by any guardian, trustee or agent of a minor or other incapacitatedperson on behalf of and for the benefit of such minor or other incapacitated person, thetax, interest or penalty shall be levied upon and recoverable from such guardian, trusteeor agent in like manner and to the same extent as it would be determined andrecoverable from any such minor or other incapacitated person, as if he were a major orcapacitated person and as if he were conducting the business himself, and all theprovisions of this Act or the rules made thereunder shall apply accordingly.
Sec 92. Liability of Court of Wards, etc.
Where the estate or any portion of the estate of a taxable person owning a business inrespect of which any tax, interest or penalty is payable under this Act is under thecontrol of the Court of Wards, the Administrator General, the Official Trustee or anyreceiver or manager (including any person, whatever be his designation, who in factmanages the business) appointed by or under any order of a court, the tax, interest orpenalty shall be levied upon and be recoverable from such Court of Wards,Administrator General, Official Trustee, receiver or manager in like manner and to thesame extent as it would be determined and be recoverable from the taxable person as ifhe were conducting the business himself, and all the provisions of this Act or the rulesmade thereunder shall apply accordingly.
Sec 93. Special provisions regarding liability to pay tax, interest or penalty in certain Cases
(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where aperson, liable to pay tax, interest or penalty under this Act, dies, then––
(a) if a business carried on by the person is continued after his death by his legalrepresentative or any other person, such legal representative or other person, shall beliable to pay tax, interest or penalty due from such person under this Act; and
(b) if the business carried on by the person is discontinued, whether before or after hisdeath, his legal representative shall be liable to pay, out of the estate of the deceased, tothe extent to which the estate is capable of meeting the charge, the tax, interest orpenalty due from such person under this Act, whether such tax, interest or penalty hasbeen determined before his death but has remained unpaid or is determined after hisdeath.
(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where ataxable person, liable to pay tax, interest or penalty under this Act, is a Hindu UndividedFamily or an association of persons and the property of the Hindu Undivided Family orthe association of persons is partitioned amongst the various members or groups ofmembers, then, each member or group of members shall, jointly and severally, be liableto pay the tax, interest or penalty due from the taxable person under this Act up to thetime of the partition whether such tax, penalty or interest has been determined beforepartition but has remained unpaid or is determined after the partition.
(3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where ataxable person, liable to pay tax, interest or penalty under this Act, is a firm, and the firmis dissolved, then, every person who was a partner shall, jointly and severally, be liable topay the tax, interest or penalty due from the firm under this Act up to the time ofdissolution whether such tax, interest or penalty has been determined before thedissolution, but has remained unpaid or is determined after dissolution.
(4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where ataxable person liable to pay tax, interest or penalty under this Act, ––
(a) is the guardian of a ward on whose behalf the business is carried on by the guardian;or
(b) is a trustee who carries on the business under a trust for a beneficiary, then, if theguardianship or trust is terminated, the ward or the beneficiary shall be liable to pay thetax, interest or penalty due from the taxable person upto the time of the termination ofthe guardianship or trust, whether such tax, interest or penalty has been determinedbefore the termination of guardianship or trust but has remained unpaid or isdetermined thereafter.
Sec 94. Liability in other cases
(1) Where a taxable person is a firm or an association of persons or a Hindu UndividedFamily and such firm, association or family has discontinued business––
(a) the tax, interest or penalty payable under this Act by such firm, association or family up to the date of such discontinuance may be determined as if no such discontinuance had taken place; and
(b) every person who, at the time of such discontinuance, was a partner of such firm, or a member of such association or family, shall, notwithstanding such discontinuance, jointly and severally, be liable for the payment of tax and interest determined and penalty imposed and payable by such firm, association or family, whether such tax and interest has been determined or penalty imposed prior to or after such discontinuance and subject as aforesaid, the provisions of this Act shall, so far as may be, apply as if every such person or partner or member were himself a taxable person.
(2) Where a change has occurred in the constitution of a firm or an association ofpersons, the partners of the firm or members of association, as it existed before and asit exists after the reconstitution, shall, without prejudice to the provisions of section 90,jointly and severally, be liable to pay tax, interest or penalty due from such firm or association for any period before its reconstitution.
(3) The provisions of sub-section (1) shall, so far as may be, apply where the taxableperson, being a firm or association of persons is dissolved or where the taxable person,being a Hindu Undivided Family, has effected partition with respect to the businesscarried on by it and accordingly references in that sub-section to discontinuance shall be construed as reference to dissolution or to partition.
Explanation –For the purposes of this Chapter, ––
(i) a “Limited Liability Partnership” formed and registered under the provisions of the Limited Liability Partnership Act, 2008 shall also be considered as a firm;
(ii) “court” means the District Court, High Court or Supreme Court.
Chapter-XVII
Advance Ruling
| Section | Rules | Rules related | Sections related |
| 95. Definitions | 103. Qualification and appointment of members of the Authority for Advance Ruling
104. Form and manner of application to the Authority for Advance Ruling 105. Certification of copies of advance rulings pronounced by the Authority 106. Form and manner of appeal to the Appellate Authority for Advance Ruling 107. Certification of copies of the advance rulings pronounced by the Appellate Authority 107A. Manual filing and processing |
||
| 96. Authority for Advance Ruling* | 103 | ||
| 97. Application for Advance Ruling | 104 | ||
| 98.Procedure on receipt of application | 105 | 101 | |
| 99.Appellate Authority for Advance Ruling** | 106 | ||
| 100. Appeal to Appellate Authority | 106 | ||
| 101. Orders of Appellate Authority | 107 | ||
| 102. Rectification of advance ruling | |||
| 103. Applicability of advance ruling | |||
| 104. Advance ruling to be void in certain circumstances | |||
| 105. Powers of Authority and Appellate Authority | |||
| 106. Procedure of Authority and Appellate Authority | |||
| *Section 96 of the State GST Acts
**Section 99 of the State GST Acts |
Sec 95. Definitions
In this Chapter, unless the context otherwise requires,––
“advance ruling” means a decision provided by the Authority or the National Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 or of section 101C, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant;
(a) “Appellate Authority” means the Appellate Authority for Advance Ruling referred to in section 99;
(b) “applicant” means any person registered or desirous of obtaining registration under this Act; 89
(c) “application” means an application made to the Authority under sub-section (1) of section 97;
(d) “Authority” means the Authority for Advance Ruling referred to in section 96.
(e) “Authority” means the Authority for Advance Ruling referred to in section 96.
(f) “National Appellate Authority” means the National Appellate Authority for Advance Ruling referred to in section 101A.
Sec 96. Authority for Advance Ruling*
Subject to the provisions of this Chapter, for the purposes of this Act, the Authority for advance ruling constituted under the provisions of a State Goods and Services Tax Act or Union Territory Goods and Services Tax Act shall be deemed to be the Authority for advance ruling in respect of that State or Union territory.
Rules Related to Sec 96 : Rule 103
103. Qualification and appointment of members of the Authority for Advance Ruling.-
The Government shall appoint officers not below the rank of Joint Commissioner as member of the Authority for Advance Ruling.] Note No. 199
Sec 97. Application for Advance Ruling
(1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought.
(2) The question on which the advance ruling is sought under this Act, shall be in respect of,––
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Rules related for Sec 97 : Rule 104
104. Form and manner of application to the Authority for Advance Ruling.
(1) An application for obtaining an advance ruling under sub-section (1) of section 97 shall be made on the common portal in FORM GST ARA-01 and shall be accompanied by a fee of five thousand rupees, to be deposited in the manner specified in section 49.
(2) The application referred to in sub-rule (1), the verification contained therein and all the relevant documents accompanying such application shall be signed in the manner specified in rule 26.
Sec 98. Procedure on receipt of Application
(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the concerned officer and, if necessary, call upon him to furnish the relevant records:
Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the said concerned officer.
(2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application:
Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act: 90
Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant:
Provided also that where the application is rejected, the reasons for such rejection shall be specified in the order.
(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the concerned officer.
(4) Where an application is admitted under sub-section (2), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority and after providing an opportunity of being heard to the applicant or his authorised representative as well as to the concerned officer or his authorised representative, pronounce its advance ruling on the question specified in the application.
(5) Where the members of the Authority differ on any question on which the advance ruling is sought, they shall state the point or points on which they differ and make a reference to the Appellate Authority for hearing and decision on such question.
(6) The Authority shall pronounce its advance ruling in writing within ninety days from the date of receipt of application.
(7) A copy of the advance ruling pronounced by the Authority duly signed by the members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer and the jurisdictional officer after such pronouncement.
Rules related to sec 98 : Rule 105
105. Certification of copies of advance rulings pronounced by the Authority.
A copy of the advance ruling shall be certified to be a true copy of its original by any member of the Authority for Advance Ruling.
Sec 99.Appellate Authority for Advance Ruling**
Subject to the provisions of this Chapter, for the purposes of this Act, the Appellate Authority for Advance Ruling constituted under the provisions of a State Goods and Services Tax Act or a Union Territory Goods and Services Tax Act shall be deemed to be the Appellate Authority in respect of that State or Union territory.
Rules related to sec 99 : Rule 106
106. Form and manner of appeal to the Appellate Authority for Advance Ruling.
(1) An appeal against the advance ruling issued under sub-section (6) of section 98 shall be made by an applicant on the common portal in FORM GST ARA-02 and shall be accompanied by a fee of ten thousand rupees to be deposited in the manner specified in section 49.
(2) An appeal against the advance ruling issued under sub-section (6) of section 98 shall be made by the concerned officer or the jurisdictional officer referred to in section 100 on the common portal in FORM GST ARA-03 and no fee shall be payable by the said officer for filing the appeal.
(3) The appeal referred to in sub-rule (1) or sub-rule (2), the verification contained therein and all the relevant documents accompanying such appeal shall be signed,-
(a) in the case of the concerned officer or jurisdictional officer, by an officer authorised in writing by such officer; and
(b) in the case of an applicant, in the manner specified in rule 26.
Sec 100. Appeal to Appellate Authority
(1) The concerned officer, the jurisdictional officer or an applicant aggrieved by any advance ruling pronounced under sub-section (4) of section 98, may appeal to the Appellate Authority.
(2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the concerned officer, the jurisdictional officer and the applicant:
Provided that the Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, allow it to be presented within a further period not exceeding thirty days.
(3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.
Rules related to sec 100 : Rule 106 ( See below Sec 99, Page No 305)
Sec 101. Orders of Appellate Authority
(1) The Appellate Authority may, after giving the parties to the appeal or reference an opportunity of being heard, pass such order as it thinks fit, confirming or modifying the ruling appealed against or referred to.
(2) The order referred to in sub-section (1) shall be passed within a period of ninety days from the date of filing of the appeal under section 100 or a reference under sub-section (5) of section 98.
(3) Where the members of the Appellate Authority differ on any point or points referred to in appeal or reference, it shall be deemed that no advance ruling can be issued in respect of the question under the appeal or reference.
(4) A copy of the advance ruling pronounced by the Appellate Authority duly signed by the Members and certified in such manner as may be prescribed shall be sent to the applicant, the concerned officer, the jurisdictional officer and to the Authority after such pronouncement.
101A. (1) The Government shall, on the recommendations of the Council, by notification, constitute, with effect from such date as may be specified therein, an Authority known as the National Appellate Authority for Advance Ruling for hearing appeals made under section 101B.
(2) The National Appellate Authority shall consist of—
(i) the President, who has been a Judge of the Supreme Court or is or has been the Chief Justice of a High Court, or is or has been a Judge of a High Court for a period not less than five years;
(ii) a Technical Member (Centre) who is or has been a member of Indian Revenue (Customs and Central Excise) Service, Group A, and has completed at least fifteen years of service in Group A;
(iii) a Technical Member (State) who is or has been an officer of the State Government not below the rank of Additional Commissioner of Value Added Tax or the Additional Commissioner of State tax with at least three years of experience in the administration of an existing law or the State Goods and Services Tax Act or in the field of finance and taxation.
(3) The President of the National Appellate Authority shall be appointed by the Government after consultation with the Chief Justice of India or his nominee:
Provided that in the event of the occurrence of any vacancy in the office of the President by reason of his death, resignation or otherwise, the senior most Member of the National Appellate Authority shall act as the President until the date on which a new President, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office:
Provided further that where the President is unable to discharge his functions owing to absence, illness or any other cause, the senior most Member of the National Appellate Authority shall discharge the functions of the President until the date on which the President resumes his duties.
(4) The Technical Member (Centre) and Technical Member (State) of the National Appellate Authority shall be appointed by the Government on the recommendations of a Selection Committee consisting of such persons and in such manner as may be prescribed.
(5) No appointment of the Members of the National Appellate Authority shall be invalid merely by the reason of any vacancy or defect in the constitution of the Selection Committee.
(6) Before appointing any person as the President or Members of the National Appellate Authority, the Government shall satisfy itself that such person does not have any financial or other interests which are likely to prejudicially affect his functions as such President or Member.
(7) The salary, allowances and other terms and conditions of service of the President and the Members of the National Appellate Authority shall be such as may be prescribed:
Provided that neither salary and allowances nor other terms and conditions of service of the President or Members of the National Appellate Authority shall be varied to their disadvantage after their appointment.
(8) The President of the National Appellate Authority shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of seventy years, whichever is earlier and shall also be eligible for reappointment.
(9) The Technical Member (Centre) or Technical Member (State) of the National Appellate Authority shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall also be eligible for reappointment.
(10) The President or any Member may, by notice in writing under his hand addressed to the Government, resign from his office:
Provided that the President or Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Government, or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.
(11) The Government may, after consultation with the Chief Justice of India, remove from the office such President or Member, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of such Government involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President or Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President or Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest:
Provided that the President or the Member shall not be removed on any of the grounds specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an opportunity of being heard.
(12) Without prejudice to the provisions of sub-section (11), the President and Technical Members of the National Appellate Authority shall not be removed from their office except by an order made by the Government on the ground of proven misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Government and such President or Member had been given an opportunity of being heard.
(13) The Government, with the concurrence of the Chief Justice of India, may suspend from office, the President or Technical Members of the National Appellate Authority in respect of whom a reference has been made to the Judge of the Supreme Court under sub-section (12).
(14) Subject to the provisions of article 220 of the Constitution, the President or Members of the National Appellate Authority, on ceasing to hold their office, shall not be eligible to appear, act or plead before the National Appellate Authority where he was the President or, as the case may be, a Member.
101B. (1) Where, in respect of the questions referred to in sub-section (2) of section 97, conflicting advance rulings are given by the Appellate Authorities of two or more States or Union territories or both under sub-section (1) or sub-section (3) of section 101, any officer authorized by the Commissioner or an applicant, being distinct person referred to in section 25 aggrieved by such advance ruling, may prefer an appeal to National Appellate Authority:
Provided that the officer shall be from the States in which such advance rulings have been given.
(2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the applicants, concerned officers and jurisdictional officers:
Provided that the officer authorised by the Commissioner may file appeal within a period of ninety days from the date on which the ruling sought to be appealed against is communicated to the concerned officer or the jurisdictional officer:
Provided further that the National Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, or as the case may be, ninety days, allow such appeal to be presented within a further period not exceeding thirty days.
Explanation.–– For removal of doubts, it is clarified that the period of thirty days or as the case may be, ninety days shall be counted from the date of communication of the last of the conflicting rulings sought to be appealed against.
(3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.
101C. (1) The National Appellate Authority may, after giving an opportunity of being heard to the applicant, the officer authorised by the Commissioner, all Principal Chief Commissioners, Chief Commissioners of Central tax and Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories, pass such order as it thinks fit, confirming or modifying the rulings appealed against.
(2) If the members of the National Appellate Authority differ in opinion on any point, it shall be decided according to the opinion of the majority.
(3) The order referred to in sub-section (1) shall be passed as far as possible within a period of ninety days from the date of filing of the appeal under section 101B.
(4) A copy of the advance ruling pronounced by the National Appellate Authority shall be duly signed by the Members and certified in such manner as may be prescribed and shall be sent to the applicant, the officer authorised by the Commissioner, the Board, the Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories and to the Authority or Appellate Authority, as the case may be, after such pronouncement.
Rules related to Sec 101 : Rule 107
107. Certification of copies of the advance rulings pronounced by the Appellate Authority.
– A copy of the advance ruling pronounced by the Appellate Authority for Advance Ruling and duly signed by the Members shall be sent to-
(a) the applicant and the appellant;
(b) the concerned officer of central tax and State or Union territory tax;
(c) the jurisdictional officer of central tax and State or Union territory tax; and
(d) the Authority, in accordance with the provisions of sub-section (4) of section 101 of the Act.
[107A. Manual filing and processing.
Notwithstanding anything contained in this Chapter, in respect of any process or procedure prescribed herein, any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules.] Note No. 200
Sec 102. Rectification of advance ruling
The Authority or the Appellate Authority or the National Appellate Authority may amend any order passed by it under section 98 or section 101 or Section 101C, so as to rectify any error apparent on the face of the record, if such error is noticed by the Authority or the Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer, the applicant or the appellant , appellant, the Authority or the Appellate Authority within a period of six months from the date of the order:
Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made unless the applicant or the appellant has been given an opportunity of being heard.
Sec 103. Applicability of advance ruling
(1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only—
(a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling;
(b) on the concerned officer or the jurisdictional officer in respect of the applicant.
(1A) The advance ruling pronounced by the National Appellate Authority under this Chapter shall be binding on—
(a) the applicants, being distinct persons, who had sought the ruling under sub-section (1) of section 101B and all registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961;
(b) the concerned officers and the jurisdictional officers in respect of the applicants referred to in clause (a) and the registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961.
(2) The advance ruling referred to in sub-section (1) and sub-section (1A) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.
Sec 104. Advance ruling to be void in certain circumstances
(1) Where the Authority or the Appellate Authority or the National Appellate Authority finds that advance ruling pronounced by it under sub-section (4) of section 98 or under sub-section (1) of section 101 or under Section 101C has been obtained by the applicant or the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant or the appellant as if such advance ruling had never been made:
Provided that no order shall be passed under this sub-section unless an opportunity of being heard has been given to the applicant or the appellant.
Explanation.––The period beginning with the date of such advance ruling and ending with the date of order under this sub-section shall be excluded while computing the period specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74.
(2) A copy of the order made under sub-section (1) shall be sent to the applicant, the concerned officer and the jurisdictional officer.
Sec 105. Powers of Authority and Appellate Authority
(1) The Authority or the Appellate Authority or the National Appellate Authority shall, for the purpose of exercising its powers regarding—
(a) discovery and inspection;
(b) enforcing the attendance of any person and examining him on oath;
(c) issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908.
(2) The Authority or the Appellate Authority or the National Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973, and every proceeding before the Authority or the Appellate Authority shall be deemed to be a judicial proceedings within the meaning of sections 193 and 228, and for the purpose of section 196 of the Indian Penal Code.
Sec 106. Procedure of Authority and Appellate Authority
The Authority or the Appellate Authority or the National Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure.
Chapter-XVIII
Appeals And Revision
| Section | Rules | Rules related | Sections related |
| 107. Appeals to Appellate Authority | 108. Appeal to the Appellate Authority
109. Application to the Appellate Authority 109A. Appointment of Appellate Authority 109B. Notice to person and order of revisional authority in case of revision 110. Appeal to the Appellate Tribunal 111. Application to the Appellate Tribunal 112. Production of additional evidence before the Appellate Authority or the Appellate Tribunal 113. Order of Appellate Authority or Appellate Tribunal 114. Appeal to the High Court 115.Demand confirmed by the Court 116. Disqualification for misconduct of an authorised representative |
108,109, 113, 26 | 73,74,108,
113,117,118 |
| 108. Powers of Revisional Authority | 107,112,113,
117,118 |
||
| 109. Constitution of Appellate Tribunal and Benches thereof | |||
| 110. President and Members of Appellate Tribunal, their qualification,appointment, conditions of service, etc. | |||
| 111. Procedure before Appellate Tribunal | |||
| 112. Appeals to Appellate Tribunal | 110-112 | 107,108 | |
| 113. Orders of Appellate Tribunal | 113 | ||
| 114. Financial and administrative powers of President | |||
| 115.Interest on refund of amount paid for admission of appeal | 107,108,56 | ||
| 116. Appearance by authorized representative | 116 | ||
| 117. Appeal to High Court | 114-115 | 107,112 | |
| 118. Appeal to Supreme Court | 114-115 | 107,112 | |
| 119. Sums due to be paid not with standing appeal, etc. | |||
| 120. Appeal not to be filed in certain cases | |||
| 121.Non-appealable decisions and orders |
Sec 107. Appeals to Appellate Authority
(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.
(2) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order.
(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.
(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.
(5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed.
(6) No appeal shall be filed under sub-section (1), unless the appellant has paid—
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed.
(7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed
(8) The Appellate Authority shall give an opportunity to the appellant of being heard.
(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.
(10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.
(11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order:
Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:
Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or section 74.
(12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.
(13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed
Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year.
(14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority.
(15) A copy of the order passed by the Appellate Authority shall also be sent to the jurisdictional Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of State tax or Commissioner of Union Territory Tax or an authority designated by him in this behalf.
(16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties.
Rules related to Sec 107: Rules 108,109,113,26
108. Appeal to the Appellate Authority.-
(1) An appeal to the Appellate Authority under sub-section (1) of section 107 shall be filed in FORM GST APL-01,along with the relevant documents, either electronically or otherwise as may be notified by the Commissioner, and a provisional acknowledgement shall be issued to the appellant immediately.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-01 shall be signed in the manner specified in rule 26.
(3) A certified copy of the decision or order appealed against shall be submitted within seven days of filing the appeal under sub-rule (1) and a final acknowledgement, indicating appeal number shall be issued thereafter in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf:
Provided that where the certified copy of the decision or order is submitted within seven days from the date of filing the FORM GST APL-01, the date of filing of the appeal shall be the date of the issue of the provisional acknowledgement and where the said copy is submitted after seven days, the date of filing of the appeal shall be the date of the submission of such copy.
Explanation.– For the provisions of this rule, the appeal shall be treated as filed only when the final acknowledgement, indicating the appeal number, is issued.
109. Application to the Appellate Authority.-
(1) An application to the Appellate Authority under sub-section (2) of section 107 shall be made in FORM GST APL-03,along with the relevant documents, either electronically or otherwise as may be notified by the Commissioner.
(2) A certified copy of the decision or order appealed against shall be submitted within seven days of the filing the application under sub-rule (1) and an appeal number shall be generated by the Appellate Authority or an officer authorised by him in this behalf.
[109A. Appointment of Appellate Authority.-
(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act may appeal to –
(a) the Commissioner (Appeals) where such decision or order is passed by the Additional or Joint Commissioner;
(b) [any officer not below the rank of Joint Commissioner (Appeals)] Note No. 201 where such decision or order is passed by the Deputy or Assistant Commissioner or Superintendent,
(2) An officer directed under sub-section (2) of section 107 to appeal against any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act may appeal to –
(a) [any officer not below the rank of Joint Commissioner (Appeals)] Note No. 202 where such decision or order is passed by the Additional or Joint Commissioner;
(b) the Additional Commissioner (Appeals) where such decision or order is passed by the Deputy or Assistant Commissioner or the Superintendent, within six months from the date of communication of the said decision or order.] Note No. 203
[109B. Notice to person and order of revisional authority in case of revision.–
(1) Where the Revisional Authority decides to pass an order in revision under section 108 which is likely to affect the person adversely, the Revisional Authority shall serve on him a notice in FORM GST RVN-01and shall give him a reasonable opportunity of being heard.
(2) The Revisional Authority shall, along with its order under sub-section (1) of section 108, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.]204
113. Order of Appellate Authority or Appellate Tribunal.-
(1) The Appellate Authority shall, along with its order under sub-section (11) of section 107, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.
(2) The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the final amount of demand confirmed by the Appellate Tribunal.
26. Method of authentication.-
(1) All applications, including reply, if any, to the notices, returns including the details of outward and inward supplies, appeals or any other document required to be submitted under the provisions of these rules shall be so submitted electronically with digital signature certificate or through e-signature as specified under the provisions of the Information Technology Act, 2000 (21 of 2000) or verified by any other mode of signature or verification as notified by the Board in this behalf:
Provided that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall furnish the documents or application verified through digital signature certificate.
(2) Each document including the return furnished online shall be signed or verified through electronic verification code-
(a) in the case of an individual, by the individual himself or where he is absent from India, by some other person duly authorised by him in this behalf, and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;
(b) in the case of a Hindu Undivided Family, by a Karta and where the Karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family or by the authorised signatory of such Karta;
(c) in the case of a company, by the chief executive officer or authorised signatory thereof;
(d) in the case of a Government or any Governmental agency or local authority, by an officer authorised in this behalf;
(e) in the case of a firm, by any partner thereof, not being a minor or authorised signatory thereof;
(f) in the case of any other association, by any member of the association or persons or authorised signatory thereof;
(g) in the case of a trust, by the trustee or any trustee or authorised signatory thereof; or
(h) in the case of any other person, by some person competent to act on his behalf, or by a person authorised in accordance with the provisions of section 48.
(3) All notices, certificates and orders under the provisions of this Chapter shall be issued electronically by the proper officer or any other officer authorised to issue such notices or certificates or orders, through digital signature certificate [or through E-signature as specified under the provisions of the Information Technology Act, 2000 (21 of 2000) or verified by any other mode of signature or verification as notified by the Board in this behalf.] Note No. 39
Sec 108. Powers of Revisional Authority
(1) Subject to the provisions of section 121 and any rules made thereunder, the revisional Authority may, on his own motion, or upon information received by him or on request from the Commissioner of State tax, or the Commissioner of Union territory tax, call for and examine the record of any proceedings, and if he considers that any decision or order passed under this Act or under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order.
(2) The Revisional Authority shall not exercise any power under sub-section (1), if—
(a) the order has been subject to an appeal under section 107 or section 112 or section 117 or section 118; or
(b) the period specified under sub-section (2) of section 107 has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised; or
(c) the order has already been taken for revision under this section at an earlier stage; or
(d) the order has been passed in exercise of the powers under sub-section (1):
Provided that the Revisional Authority may pass an order under sub-section (1) on any point which has not been raised and decided in an appeal referred to in clause (a) of sub-section (2), before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of three years referred to in clause (b) of that sub-section, whichever is later.
(3) Every order passed in revision under sub-section (1) shall, subject to the provisions of section 113 or section 117 or section 118, be final and binding on the parties.
(4) If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court or the date of the decision of the High Court and the date of the decision of the Supreme Court shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2) where proceedings for revision have been initiated by way of issue of a notice under this section.
(5) Where the issuance of an order under sub-section (1) is stayed by the order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of limitation referred to in clause (b) of sub-section (2).
(6) For the purposes of this section, the term,––
(i) “record” shall include all records relating to any proceedings under this Act available at the time of examination by the Revisional Authority;
(ii) “decision” shall include intimation given by any officer lower in rank than the Revisional Authority.
Sec 109. Constitution of Appellate Tribunal and Benches thereof
(1) The Government shall, on the recommendations of the Council, by notification, constitute with effect from such date as may be specified therein, an Appellate Tribunal known as the Goods and Services Tax Appellate Tribunal for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority.
(2) The powers of the Appellate Tribunal shall be exercisable by the National Bench and Benches thereof (hereinafter in this Chapter referred to as “Regional Benches”), State Bench and Benches thereof (hereafter in this Chapter referred to as “Area Benches”).
(3) The National Bench of the Appellate Tribunal shall be situated at New Delhi which shall be presided over by the President and shall consist of one Technical Member (Centre) and one Technical Member (State).
(4) The Government shall, on the recommendations of the Council, by notification, constitute such number of Regional Benches as may be required and such Regional Benches shall consist of a Judicial Member, one Technical Member (Centre) and one Technical Member (State).
(5) The National Bench or Regional Benches of the Appellate Tribunal shall have jurisdiction to hear appeals against the orders passed by the Appellate Authority or the Revisional Authority in the cases where one of the issues involved relates to the place of supply.
(6) The Government shall, by notification, specify for each State or Union territory, a Bench of the Appellate Tribunal (hereafter in this Chapter, referred to as “State Bench”) for exercising the powers of the Appellate Tribunal within the concerned State or Union territory except for the State of Jammu and Kashmir:
Provided that the Government shall, on receipt of a request from any State Government, constitute such number of Area Benches in that State, as may be recommended by the Council:
Provided further that the Government may, on receipt of a request from any State, or on its own motion for a Union territory, notify the Appellate Tribunal in a State to act as the Appellate Tribunal for any other State or Union territory, as may be recommended by the Council, subject to such terms and conditions as may be prescribed.
(7) The State Bench or Area Benches shall have jurisdiction to hear appeals against the orders passed by the Appellate Authority or the Revisional Authority in the cases involving matters other than those referred to in sub-section (5).
(8) The President and the State President shall, by general or special order, distribute the business or transfer cases among Regional Benches or, as the case may be, Area Benches in a State.
(9) Each State Bench and Area Benches of the Appellate Tribunal shall consist of a Judicial Member, one Technical Member (Centre) and one Technical Member (State) and the State Government may designate the senior most Judicial Member in a State as the State President.
(10) In the absence of a Member in any Bench due to vacancy or otherwise, any appeal may, with the approval of the President or, as the case may be, the State President, be heard by a Bench of two Members
Provided that any appeal where the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in any order appealed against, does not exceed five lakh rupees and which does not involve any question of law may, with the approval of the President and subject to such conditions as may be prescribed on the recommendations of the Council, be heard by a bench consisting of a single member.
(11) If the Members of the National Bench, Regional Benches, State Bench or Area Benches differ in opinion on any point or points, it shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the President or as the case may be, State President for hearing on such point or points to one or more of the other Members of the National Bench, Regional Benches, State Bench or Area Benches and such point or points shall be decided according to the opinion of the majority of Members who have heard the case, including those who first heard it.
(12) The Government, in consultation with the President may, for the administrative convenience, transfer—
(a) any Judicial Member or a Member Technical (State) from one Bench to another Bench, whether National or Regional; or
(b) any Member Technical (Centre) from one Bench to another Bench, whether National, Regional, State or Area.
(13) The State Government, in consultation with the State President may, for the administrative convenience, transfer a Judicial Member or a Member Technical (State) from one Bench to another Bench within the State.
(14) No act or proceedings of the Appellate Tribunal shall be questioned or shall be invalid merely on the ground of the existence of any vacancy or defect in the constitution of the Appellate Tribunal.
Sec 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc
(1) A person shall not be qualified for appointment as—
(a) the President, unless he has been a Judge of the Supreme Court or is or has been the Chief Justice of a High Court, or is or has been a Judge of a High Court for a period not less than five years;
(b) a Judicial Member, unless he—
(i) has been a Judge of the High Court; or
(ii) is or has been a District Judge qualified to be appointed as a Judge of a High Court; or
(iii) is or has been a Member of Indian Legal Service and has held a post not less than Additional Secretary for three years;
(c) a Technical Member (Centre) unless he is or has been a member of Indian Revenue (Customs and Central Excise) Service, Group A, and has completed at least fifteen years of service in Group A;
(d) a Technical Member (State) unless he is or has been an officer of the State Government not below the rank of Additional Commissioner of Value Added Tax or the State goods and services tax or such rank as may be notified by the concerned State Government on the recommendations of the Council with at least three years of experience in the administration of an existing law or the State Goods and Services Tax Act or in the field of finance and taxation.
(2) The President and the Judicial Members of the National Bench and the Regional Benches shall be appointed by the Government after consultation with the Chief Justice of India or his nominee:
Provided that in the event of the occurrence of any vacancy in the office of the President by reason of his death, resignation or otherwise, the senior most Member of the National Bench shall act as the President until the date on which a new President, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office:
Provided further that where the President is unable to discharge his functions owing to absence, illness or any other cause, the senior most Member of the National Bench shall discharge the functions of the President until the date on which the President resumes his duties.
(3) The Technical Member (Centre) and Technical Member (State) of the National Bench and Regional Benches shall be appointed by the Government on the recommendations of a Selection Committee consisting of such persons and in such manner as may be prescribed.
(4) The Judicial Member of the State Bench or Area Benches shall be appointed by the State Government after consultation with the Chief Justice of the High Court of the State or his nominee.
(5) The Technical Member (Centre) of the State Bench or Area Benches shall be appointed by the Central Government and Technical Member (State) of the State Bench or Area Benches shall be appointed by the State Government in such manner as may be prescribed.
(6) No appointment of the Members of the Appellate Tribunal shall be invalid merely by the reason of any vacancy or defect in the constitution of the Selection Committee.
(7) Before appointing any person as the President or Members of the Appellate Tribunal, the Central Government or, as the case may be, the State Government, shall satisfy itself that such person does not have any financial or other interests which are likely to prejudicially affect his functions as such President or Member.
(8) The salary, allowances and other terms and conditions of service of the President, State President and the Members of the Appellate Tribunal shall be such as may be prescribed:
Provided that neither salary and allowances nor other terms and conditions of service of the President, State President or Members of the Appellate Tribunal shall be varied to their disadvantage after their appointment.
(9) The President of the Appellate Tribunal shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of seventy years, whichever is earlier and shall be eligible for reappointment.
(10) The Judicial Member of the Appellate Tribunal and the State President shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall be eligible for reappointment.
(11) The Technical Member (Centre) or Technical Member (State) of the Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall be eligible for reappointment.
(12) The President, State President or any Member may, by notice in writing under his hand addressed to the Central Government or, as the case may be, the State Government resign from his office:
Provided that the President, State President or Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Central Government, or, as the case may be, the State Government or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.
(13) The Central Government may, after consultation with the Chief Justice of India, in case of the President, Judicial Members and Technical Members of the National Bench, Regional Benches or Technical Members (Centre) of the State Bench or Area Benches, and the State Government may, after consultation with the Chief Justice of High Court, in case of the State President, Judicial Members, Technical Members (State) of the State Bench or Area Benches, may remove from the office such President or Member, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of such Government involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such President, State President or Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President, State President or Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest:
Provided that the President, State President or the Member shall not be removed on any of the grounds specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an opportunity of being heard.
(14) Without prejudice to the provisions of sub-section (13),––
(a) the President or a Judicial and Technical Member of the National Bench or Regional Benches, Technical Member (Centre) of the State Bench or Area Benches shall not be removed from their office except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Central Government and of which the President or the said Member had been given an opportunity of being heard;
(b) the Judicial Member or Technical Member (State) of the State Bench or Area Benches shall not be removed from their office except by an order made by the State Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the concerned High Court nominated by the Chief Justice of the concerned High Court on a reference made to him by the State Government and of which the said Member had been given an opportunity of being heard.
(15) The Central Government, with the concurrence of the Chief Justice of India, may suspend from office, the President or a Judicial or Technical Members of the National Bench or the Regional Benches or the Technical Member (Centre) of the State Bench or Area Benches in respect of whom a reference has been made to the Judge of the Supreme Court under sub-section (14).
(16) The State Government, with the concurrence of the Chief Justice of the High Court, may suspend from office, a Judicial Member or Technical Member (State) of the State Bench or Area Benches in respect of whom a reference has been made to the Judge of the High Court under sub-section (14).
(17) Subject to the provisions of article 220 of the Constitution, the President, State President or other Members, on ceasing to hold their office, shall not be eligible to appear, act or plead before the National Bench and the Regional Benches or the State Bench and the Area Benches thereof where he was the President or, as the case may be, a Member.
Sec 111. Procedure before Appellate Tribunal
(1) The Appellate Tribunal shall not, while disposing of any proceedings before it or an appeal before it, be bound by the procedure laid down in the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and subject to the other provisions of this Act and the rules made thereunder, the Appellate Tribunal shall have power to regulate its own procedure.
(2) The Appellate Tribunal shall, for the purposes of discharging its functions under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely:—
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, requisitioning any public record or document or a copy of such record or document from any office;
(e) issuing commissions for the examination of witnesses or documents;
(f) dismissing a representation for default or deciding it exparte;
(g) setting aside any order of dismissal of any representation for default or any order passed by it exparte; and
(h) any other matter which may be prescribed.
(3) Any order made by the Appellate Tribunal may be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the Appellate Tribunal to send for execution of its orders to the court within the local limits of whose jurisdiction,—
(a) in the case of an order against a company, the registered office of the company is situated; or
(b) in the case of an order against any other person, the person concerned voluntarily resides or carries on business or personally works for gain.
(4) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code, and the Appellate Tribunal shall be deemed to be civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
Sec 112. Appeal before Appellate Tribunal
(1) Any person aggrieved by an order passed against him under section 107 or section 108 of this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal.
(2) The Appellate Tribunal may, in its discretion, refuse to admit any such appeal where the tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined by such order, does not exceed fifty thousand rupees.
(3) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or Commissioner of Union territory tax, call for and examine the record of any order passed by the Appellate Authority or the Revisional Authority under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act for the purpose of satisfying himself as to the legality or propriety of the said order and may, by order, direct any officer subordinate to him to apply to the Appellate Tribunal within six months from the date on which the said order has been passed for determination of such points arising out of the said order as may be specified by the Commissioner in his order.
(4) Where in pursuance of an order under sub-section (3) the authorised officer makes an application to the Appellate Tribunal, such application shall be dealt with by the Appellate Tribunal as if it were an appeal made against the order under sub-section (11) of section 107 or under sub-section (1) of section 108 and the provisions of this Act shall apply to such application, as they apply in relation to appeals filed under sub-section (1).
(5) On receipt of notice that an appeal has been preferred under this section, the party against whom the appeal has been preferred may, notwithstanding that he may not have appealed against such order or any part thereof, file, within forty-five days of the receipt of notice, a memorandum of cross-objections, verified in the prescribed manner, against any part of the order appealed against and such memorandum shall be disposed of by the Appellate Tribunal, as if it were an appeal presented within the time specified in sub-section (1).
(6) The Appellate Tribunal may admit an appeal within three months after the expiry of the period referred to in sub-section (1), or permit the filing of a memorandum of cross-objections within forty-five days after the expiry of the period referred to in sub-section (5) if it is satisfied that there was sufficient cause for not presenting it within that period.
(7) An appeal to the Appellate Tribunal shall be in such form, verified in such manner and shall be accompanied by such fee, as may be prescribed.
(8) No appeal shall be filed under sub-section (1), unless the appellant has paid––
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and
(b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of section 107, arising from the said order subject to a maximum of fifty crore rupees in relation to which the appeal has been filed.
(9) Where the appellant has paid the amount as per sub-section (8), the recovery proceedings for the balance amount shall be deemed to be stayed till the disposal of the appeal.
(10) Every application made before the Appellate Tribunal,—
(a) in an appeal for rectification of error or for any other purpose; or
(b) for restoration of an appeal or an application, shall be accompanied by such fees as may be prescribed.
Rules related to sec 112 : Rule 110-112
110. Appeal to the Appellate Tribunal.-
(1) An appeal to the Appellate Tribunal under sub-section (1) of section 112 shall be filed along with the relevant documents either electronically or otherwise as may be notified by the Registrar, in FORM GST APL-05,on the common portal and a provisional acknowledgement shall be issued to the appellant immediately.
(2) A memorandum of cross-objections to the Appellate Tribunal under sub-section (5) of section 112 shall be filed either electronically or otherwise as may be notified by the Registrar, in FORM GST APL-06.
(3) The appeal and the memorandum of cross objections shall be signed in the manner specified in rule 26.
(4) A certified copy of the decision or order appealed against along with fees as specified in sub-rule (5) shall be submitted to the Registrar within seven days of the filing of the appeal under sub-rule (1) and a final acknowledgement, indicating the appeal number shall be issued thereafter in FORM GST APL-02by the Registrar:
Provided that where the certified copy of the decision or order is submitted within seven days from the date of filing the FORM GST APL-05, the date of filing of the appeal shall be the date of the issue of the provisional acknowledgement and where the said copy is submitted after seven days, the date of filing of the appeal shall be the date of the submission of such copy.
Explanation.– For the purposes of this rule, the appeal shall be treated as filed only when the final acknowledgement indicating the appeal number is issued.
(5) The fees for filing of appeal or restoration of appeal shall be one thousand rupees for every one lakh rupees of tax or input tax credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined in the order appealed against, subject to a maximum of twenty-five thousand rupees.
(6) There shall be no fee for application made before the Appellate Tribunal for rectification of errors referred to in sub-section (10) of section 112.
111. Application to the Appellate Tribunal.-
(1) An application to the Appellate Tribunal under sub-section (3) of section 112 shall be made electronically or otherwise, in FORM GST APL-07, along with the relevant documents on the common portal.
(2) A certified copy of the decision or order appealed against shall be submitted within seven days of filing the application under sub-rule (1) and an appeal number shall be generated by the Registrar.
112. Production of additional evidence before the Appellate Authority or the Appellate Tribunal.-
(1) The appellant shall not be allowed to produce before the Appellate Authority or the Appellate Tribunal any evidence, whether oral or documentary, other than the evidence produced by him during the course of the proceedings before the adjudicating authority or, as the case may be, the Appellate Authority except in the following circumstances, namely:-
(a) where the adjudicating authority or, as the case may be, the Appellate Authority has refused to admit evidence which ought to have been admitted; or
(b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the adjudicating authority or, as the case may be, the Appellate Authority; or
(c) where the appellant was prevented by sufficient cause from producing before the adjudicating authority or, as the case may be, the Appellate Authority any evidence which is relevant to any ground of appeal; or
(d) where the adjudicating authority or, as the case may be, the Appellate Authority has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal.
(2) No evidence shall be admitted under sub-rule (1) unless the Appellate Authority or the Appellate Tribunal records in writing the reasons for its admission.
(3) The Appellate Authority or the Appellate Tribunal shall not take any evidence produced under sub-rule (1) unless the adjudicating authority or an officer authorised in this behalf by the said authority has been allowed a reasonable opportunity –
(a) to examine the evidence or document or to cross-examine any witness produced by the appellant; or
(b) to produce any evidence or any witness in rebuttal of the evidence produced by the appellant under sub-rule (1).
(4) Nothing contained in this rule shall affect the power of the Appellate Authority or the Appellate Tribunal to direct the production of any document, or the examination of any witness, to enable it to dispose of the appeal.
Sec 113. Orders of Appellate Tribunal
(1) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the Appellate Authority, or the Revisional Authority or to the original adjudicating authority, with such directions as it may think fit, for a fresh adjudication or decision after taking additional evidence, if necessary.
(2) The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.
(3) The Appellate Tribunal may amend any order passed by it under sub-section (1) so as to rectify any error apparent on the face of the record, if such error is noticed by it on its own accord, or is brought to its notice by the Commissioner or the Commissioner of State tax or the Commissioner of the Union territory tax or the other party to the appeal within a period of three months from the date of the order:
Provided that no amendment which has the effect of enhancing an assessment or reducing a refund or input tax credit or otherwise increasing the liability of the other party, shall be made under this sub-section, unless the party has been given an opportunity of being heard.
(4) The Appellate Tribunal shall, as far as possible, hear and decide every appeal within a period of one year from the date on which it is filed.
(5) The Appellate Tribunal shall send a copy of every order passed under this section to the Appellate Authority or the Revisional Authority, or the original adjudicating authority, as the case may be, the appellant and the jurisdictional Commissioner or the Commissioner of State tax or the Union territory tax.
(6) Save as provided in section 117 or section 118, orders passed by the Appellate Tribunal on an appeal shall be final and binding on the parties.
Rules related to sec 113 : Rule 113
113. Order of Appellate Authority or Appellate Tribunal.-
(1) The Appellate Authority shall, along with its order under sub-section (11) of section 107, issue a summary of the order in FORM GST APL-04 clearly indicating the final amount of demand confirmed.
(2) The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the final amount of demand confirmed by the Appellate Tribunal.
Sec 114. Financial and administrative powers of President
The President shall exercise such financial and administrative powers over the National Bench and Regional Benches of the Appellate Tribunal as may be prescribed:
Provided that the President shall have the authority to delegate such of his financial and administrative powers as he may think fit to any other Member or any officer of the National Bench and Regional Benches, subject to the condition that such Member or officer shall, while exercising such delegated powers, continue to act under the direction, control and supervision of the President.
Sec 115. Interest on refund of amount paid for admission of appeal
Where an amount paid by the appellant under sub-section (6) of section 107 or sub-section (8) of section 112 is required to be refunded consequent to any order of the Appellate Authority or of the Appellate Tribunal, interest at the rate specified under section 56 shall be payable in respect of such refund from the date of payment of the amount till the date of refund of such amount.
(1) Any person who is entitled or required to appear before an officer appointed under this Act, or the Appellate Authority or the Appellate Tribunal in connection with any proceedings under this Act, may, otherwise than when required under this Act to appear personally for examination on oath or affirmation, subject to the other provisions of this section, appear by an authorised representative.
(2) For the purposes of this Act, the expression “authorised representative” shall mean a person authorised by the person referred to in sub-section (1) to appear on his behalf, being—
(a) his relative or regular employee; or
(b) an advocate who is entitled to practice in any court in India, and who has not been debarred from practicing before any court in India; or
(c) any chartered accountant, a cost accountant or a company secretary, who holds a certificate of practice and who has not been debarred from practice; or
(d) a retired officer of the Commercial Tax Department of any State Government or Union territory or of the Board who, during his service under the Government, had worked in a post not below the rank than that of a Group-B Gazetted officer for a period of not less than two years:
Provided that such officer shall not be entitled to appear before any proceedings under this Act for a period of one year from the date of his retirement or resignation; or
(e) any person who has been authorised to act as a goods and services tax practitioner on behalf of the concerned registered person.
(3) No person,—
(a) who has been dismissed or removed from Government service; or
(b) who is convicted of an offence connected with any proceedings under this Act, the State Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, or under the existing law or under any of the Acts passed by a State Legislature dealing with the imposition of taxes on sale of goods or supply of goods or services or both; or
(c) who is found guilty of misconduct by the prescribed authority;
(d) who has been adjudged as an insolvent, shall be qualified to represent any person under sub-section (1)—
(i) for all times in case of persons referred to in clauses (a), (b) and (c); and
(ii) for the period during which the insolvency continues in the case of a person referred to in clause (d).
(4) Any person who has been disqualified under the provisions of the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be disqualified under this Act.
Rules related to Sec 116 : Rule 116
116. Disqualification for misconduct of an authorised representative.-
Where an authorised representative, other than those referred to in clause (b) or clause (c) of sub-section (2) of section 116 is found, upon an enquiry into the matter, guilty of misconduct in connection with any proceedings under the Act, the
Commissioner may, after providing him an opportunity of being heard, disqualify him from appearing as an authorised representative.
Sec 117. Appeal to High Court
(1) Any person aggrieved by any order passed by the State Bench or Area Benches of the Appellate Tribunal may file an appeal to the High Court and the High Court may admit such appeal, if it is satisfied that the case involves a substantial question of law.
(2) An appeal under sub-section (1) shall be filed within a period of one hundred and eighty days from the date on which the order appealed against is received by the aggrieved person and it shall be in such form, verified in such manner as may be prescribed:
Provided that the High Court may entertain an appeal after the expiry of the said period if it is satisfied that there was sufficient cause for not filing it within such period.
(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question and the appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question:
Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
(4) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.
(5) The High Court may determine any issue which––
(a) has not been determined by the State Bench or Area Benches; or
(b) has been wrongly determined by the State Bench or Area Benches, by reason of a decision on such question of law as herein referred to in sub-section (3).
(6) Where an appeal has been filed before the High Court, it shall be heard by a Bench of not less than two Judges of the High Court, and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges.
(7) Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall, then, be heard upon that point only, by one or more of the other Judges of the High Court and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it.
(8) Where the High Court delivers a judgment in an appeal filed before it under this section, effect shall be given to such judgment by either side on the basis of a certified copy of the judgment.
(9) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908, relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.
Rules related to Sec 117 : Rule 114,115
114. Appeal to the High Court.-
(1) An appeal to the High Court under sub-section (1) of section 117 shall be filed in FORM GST APL-08.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-08 shall be signed in the manner specified in rule 26.
115. Demand confirmed by the Court.-
The jurisdictional officer shall issue a statement in FORM GST APL-04 clearly indicating the final amount of demand confirmed by the High Court or, as the case may be, the Supreme Court.
Sec 118. Appeal to Supreme Court
(1) An appeal shall lie to the Supreme Court—
(a) from any order passed by the National Bench or Regional Benches of the Appellate Tribunal; or
(b) from any judgment or order passed by the High Court in an appeal made under section 117 in any case which, on its own motion or on an application made by or on behalf of the party aggrieved, immediately after passing of the judgment or order, the High Court certifies to be a fit one for appeal to the Supreme Court.
(2) The provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section as they apply in the case of appeals from decrees of a High Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section 117 in the case of a judgment of the High Court.
Rules related to Sec 118 : Rule 114,115 ( See below Sec 117, Page 333)
Sec 119. Sums dues to paid notwithstanding appeal etc
Notwithstanding that an appeal has been preferred to the High Court or the Supreme Court, sums due to the Government as a result of an order passed by the National or Regional Benches of the Appellate Tribunal under sub-section (1) of section 113 or an order passed by the State Bench or Area Benches of the Appellate Tribunal under sub-section (1) of section 113 or an order passed by the High Court under section 117, as the case may be, shall be payable in accordance with the order so passed.
Sec 120. Appeal not to be filed in certain cases
(1) The Board may, on the recommendations of the Council, from time to time, issue orders or instructions or directions fixing such monetary limits, as it may deem fit, for the purposes of regulating the filing of appeal or application by the officer of the central tax under the provisions of this Chapter.
(2) Where, in pursuance of the orders or instructions or directions issued under sub-section (1), the officer of the central tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the central tax from filing appeal or application in any other case involving the same or similar issues or questions of law.
(3) Notwithstanding the fact that no appeal or application has been filed by the officer of the central tax pursuant to the orders or instructions or directions issued under sub-section (1), no person, being a party in appeal or application shall contend that the officer of the central tax has acquiesced in the decision on the disputed issue by not filing an appeal or application.
(4) The Appellate Tribunal or court hearing such appeal or application shall have regard to the circumstances under which appeal or application was not filed by the officer of the central tax in pursuance of the orders or instructions or directions issued under sub-section (1).
Sec 121. Non appealable decisions and orders
Notwithstanding anything to the contrary in any provisions of this Act, no appeal shall lie against any decision taken or order passed by an officer of central tax if such decision taken or order passed relates to any one or more of the following matters, namely:—
(a) an order of the Commissioner or other authority empowered to direct transfer of proceedings from one officer to another officer; or
(b) an order pertaining to the seizure or retention of books of account, register and other documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed under section 80.
Chapter-XIX
Offences And Penalties
| Section | Rules | Rules related | Sections related |
| 122. Penalty for certain offences | 162. Procedure for compounding of offences | ||
| 123. Penalty for failure to furnish information return | |||
| 124. Fine for failure to furnish statistics | |||
| 125. General penalty | |||
| 126. General disciplines related to penalty | |||
| 127. Power to impose penalty in certain cases | |||
| 128. Power to waive penalty or fee or both | |||
| 129. Detention, seizure and release of goods and conveyances in transit | |||
| 130. Confiscation of goods or conveyances andlevy of penalty | |||
| 131. Confiscation or penalty not to interfere withother punishments | |||
| 132. Punishment for certain offences | |||
| 133. Liability of officers and certain otherpersons | |||
| 134. Cognizance of offences | |||
| 135. Presumption of culpable mental state | |||
| 136. Relevancy of statements under certain circumstances | |||
| 137. Offences by companies | |||
| 138. Compounding of offences | 162 |
Sec 122. Penalty for certain offences
(1) Where a taxable person who––
(i) supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply;
(ii) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act or the rules made thereunder;
(iii) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due;
(iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due;
(v) fails to deduct the tax in accordance with the provisions of sub-section (1) of section 51, or deducts an amount which is less than the amount required to be deducted under the said sub-section, or where he fails to pay to the Government under sub-section (2) thereof, the amount deducted as tax;
(vi) fails to collect tax in accordance with the provisions of sub-section (1) of section 52, or collects an amount which is less than the amount required to be collected under the said sub-section or where he fails to pay to the Government the amount collected as tax under sub-section (3) of section 52;
(vii) takes or utilises input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act or the rules made thereunder;
(viii) fraudulently obtains refund of tax under this Act;
(ix) takes or distributes input tax credit in contravention of section 20, or the rules made thereunder;
(x) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information or return with an intention to evade payment of tax due under this Act;
(xi) is liable to be registered under this Act but fails to obtain registration;
(xii) furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently;
(xiii) obstructs or prevents any officer in discharge of his duties under this Act;
(xiv) transports any taxable goods without the cover of documents as may be specified in this behalf;
(xv) suppresses his turnover leading to evasion of tax under this Act;
(xvi) fails to keep, maintain or retain books of account and other documents in accordance with the provisions of this Act or the rules made thereunder;
(xvii) fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or the rules made thereunder or furnishes false information or documents during any proceedings under this Act;
(xviii) supplies, transports or stores any goods which he has reasons to believe are liable to confiscation under this Act;
(xix) issues any invoice or document by using the registration number of another registered person;
(xx) tampers with, or destroys any material evidence or document;
(xxi) disposes off or tampers with any goods that have been detained, seized, or attached under this Act, he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher.
(1A) Any person who retains the benefit of a transaction covered under clauses (i), (ii), (vii) or clause (ix) of sub-section (1)and at whose instance such transaction is conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on.
(2) Any registered person who supplies any goods or services or both on which any tax has not been paid or short-paid or erroneously refunded, or where the input tax credit has been wrongly availed or utilised,—
(a) for any reason, other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees or ten per cent. of the tax due from such person, whichever is higher;
(b) for reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty equal to ten thousand rupees or the tax due from such person, whichever is higher.
(3) Any person who––
(a) aids or abets any of the offences specified in clauses (i) to (xxi) of sub-section (1);
(b) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder;
(c) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder;
(d) fails to appear before the officer of central tax, when issued with a summon for appearance to give evidence or produce a document in an inquiry;
(e) fails to issue invoice in accordance with the provisions of this Act or the rules made thereunder or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to twenty-five thousand rupees.
Sec 123. Penalty for failure to furnish information return
If a person who is required to furnish an information return under section 150 fails to do so within the period specified in the notice issued under sub-section (3) thereof, the proper officer may direct that such person shall be liable to pay a penalty of one hundred rupees for each day of the period during which the failure to furnish such return continues:
Provided that the penalty imposed under this section shall not exceed five thousand rupees.
Sec 124. Fine for failure to furnish statistics
If any person required to furnish any information or return under section 151,—
(a) without reasonable cause fails to furnish such information or return as may be required under that section, or
(b) wilfully furnishes or causes to furnish any information or return which he knows to be false, he shall be punishable with a fine which may extend to ten thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues subject to a maximum limit of twenty- five thousand rupees.
Sec 125. General penalty
Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty-five thousand rupees.
(1) No officer under this Act shall impose any penalty for minor breaches of tax regulations or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence.
Explanation.––For the purpose of this sub-section,––
(a) a breach shall be considered a ‘minor breach’ if the amount of tax involved is less than five thousand rupees;
(b) an omission or mistake in documentation shall be considered to be easily rectifiable if the same is an error apparent on the face of record.
(2) The penalty imposed under this Act shall depend on the facts and circumstances of each case and shall be commensurate with the degree and severity of the breach.
(3) No penalty shall be imposed on any person without giving him an opportunity of being heard.
(4) The officer under this Act shall while imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature of the breach and the applicable law, regulation or procedure under which the amount of penalty for the breach has been specified.
(5) When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact as a mitigating factor when quantifying a penalty for that person.
(6) The provisions of this section shall not apply in such cases where the penalty specified under this Act is either a fixed sum or expressed as a fixed percentage.
Sec 127. Power to impose penalty in certain cases
Where the proper officer is of the view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section 63 or section 64 or section 73 or section 74 or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.
Sec 128. Power to waive penalty or fee or both
The Government may, by notification, waive in part or full, any penalty referred to in section 122 or section 123 or section 125 or any late fee referred to in section 47 for such class of taxpayers and under such mitigating circumstances as may be specified therein on the recommendations of the Council.
Sec 129. Detention, seizure and release of goods and conveyances in transit
(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,––
(a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty;
(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed:
Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.
(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances.
(3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c).
(4) No tax, interest or penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.
(5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded.
(6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days Fourteen days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130:
Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer.
Sec 130. Confiscation of goods or conveyances and levy of penalty
(1) Notwithstanding anything contained in this Act, if any person—
(i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or
(ii) does not account for any goods on which he is liable to pay tax under this Act; or
(iii) supplies any goods liable to tax under this Act without having applied for registration; or
(iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or
(v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122.
(2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not be less than the amount of penalty leviable under sub-section (1) of section 129:
Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon.
(3) Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the owner of such goods or conveyance or the person referred to in sub-section (1), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance.
(4) No order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard.
(5) Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government.
(6) The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession.
(7) The proper officer may, after satisfying himself that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government.
Sec 131. Confiscation or penalty not to interfere with other punishments
Without prejudice to the provisions contained in the Code of Criminal Procedure, 1973, no confiscation made or penalty imposed under the provisions of this Act or the rules made thereunder shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law for the time being in force.
Sec 132. Punishment for certain offences
(1) Whoever commits any of the following offences, Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences, namely:—
(a) supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax;
(b) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax;
(c) avails input tax credit using such invoice or bill referred to in clause (b);
(c) Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences
(d) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due;
(e) evades tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not covered under clauses (a) to (d);
(f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act;
(g) obstructs or prevents any officer in the discharge of his duties under this Act;
(h) acquires possession of, or in any way concerns himself in transporting, removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with, any goods which he knows or has reasons to believe are liable to confiscation under this Act or the rules made thereunder;
(i) receives or is in any way concerned with the supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder;
(j) tampers with or destroys any material evidence or documents;
(k) fails to supply any information which he is required to supply under this Act or the rules made thereunder or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information; or
(l) attempts to commit, or abets the commission of any of the offences mentioned in clauses (a) to (k) of this section, shall be punishable––
(i) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine;
(ii) in cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds two hundred lakh rupees but does not exceed five hundred lakh rupees, with imprisonment for a term which may extend to three years and with fine;
(iii) in the case of any other offence where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees but does not exceed two hundred lakh rupees, with imprisonment for a term which may extend to one year and with fine;
(iv) in cases where he commits or abets the commission of an offence specified in clause (f) or clause (g) or clause (j), he shall be punishable with imprisonment for a term which may extend to six months or with fine or with both.
(2) Where any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to five years and with fine.
(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1) and sub-section (2) shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, be for a term not less than six months.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non- cognizable and bailable.
(5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) and punishable under clause (i) of that sub-section shall be cognizable and non-bailable.
(6) A person shall not be prosecuted for any offence under this section except with the previous sanction of the Commissioner.
Explanation.— For the purposes of this section, the term “tax” shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly taken under the provisions of this Act, the State Goods and Services Tax Act, the Integrated Goods and Services Tax Act or the Union Territory Goods and Services Tax Act and cess levied under the Goods and Services Tax (Compensation to States) Act.
Sec 133. Liability of officers and certain other persons
(1) Where any person engaged in connection with the collection of statistics under section 151 or compilation or computerisation thereof or if any officer of central tax having access to information specified under sub-section (1) of section 150, or if any person engaged in connection with the provision of service on the common portal or the agent of common portal, wilfully discloses any information or the contents of any return furnished under this Act or rules made thereunder otherwise than in execution of his duties under the said sections or for the purposes of prosecution for an offence under this Act or under any other Act for the time being in force, he shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to twenty-five thousand rupees, or with both.
(2) Any person—
(a) who is a Government servant shall not be prosecuted for any offence under this section except with the previous sanction of the Government;
(b) who is not a Government servant shall not be prosecuted for any offence under this section except with the previous sanction of the Commissioner.
Sec 134. Cognizance of Offence
No court shall take cognizance of any offence punishable under this Act or the rules made thereunder except with the previous sanction of the Commissioner, and no court inferior to that of a Magistrate of the First Class, shall try any such offence.
Sec 135. Presumption of culpable mental state
In any prosecution for an offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.
Explanation.—For the purposes of this section,––
(i) the expression “culpable mental state” includes intention, motive, knowledge of a fact, and belief in, or reason to believe, a fact;
(ii) a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.
Sec 136. Relevancy of statements under certain circumstances
A statement made and signed by a person on appearance in response to any summons issued under section 70 during the course of any inquiry or proceedings under this Act shall be relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth of the facts which it contains,––
(a) when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the court considers unreasonable; or
(b) when the person who made the statement is examined as a witness in the case before the court and the court is of the opinion that, having regard to the circumstances of the case, the statement should be admitted in evidence in the interest of justice.
Sec 137. Offences by companies
(1) Where an offence committed by a person under this Act is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
(3) Where an offence under this Act has been committed by a taxable person being a partnership firm or a Limited Liability Partnership or a Hindu Undivided Family or a trust, the partner or karta or managing trustee shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly and the provisions of sub-section (2) shall, mutatis mutandis, apply to such persons.
(4) Nothing contained in this section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
Explanation.––For the purposes of this section,––
(i) “company” means a body corporate and includes a firm or other association of individuals; and
(ii) “director”, in relation to a firm, means a partner in the firm.
Sec 138. Compounding of offences
(1) Any offence under this Act may, either before or after the institution of prosecution,be compounded by the Commissioner on payment, by the person accused of the offence, to the Central Government or the State Government, as the case be, of such compounding amount in such manner as may be prescribed:
Provided that nothing contained in this section shall apply to—
(a) a person who has been allowed to compound once in respect of any of the offences specified in clauses (a) to (f) of sub-section (1) of section 132 and the offences specified in clause (l) which are relatable to offences specified in clauses (a) to (f) of the said sub-section;
(b) a person who has been allowed to compound once in respect of any offence, other than those in clause (a), under this Act or under the provisions of any State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act or the Integrated Goods and Services Tax Act in respect of supplies of value exceeding one crore rupees;
(c) a person who has been accused of committing an offence under this Act which is also an offence under any other law for the time being in force;
(d) a person who has been convicted for an offence under this Act by a court;
(e) a person who has been accused of committing an offence specified in clause (g) or clause (j) or clause (k) of sub-section (1) of section 132; and
(f) any other class of persons or offences as may be prescribed:
Provided further that any compounding allowed under the provisions of this section shall not affect the proceedings, if any, instituted under any other law:
Provided also that compounding shall be allowed only after making payment of tax, interest and penalty involved in such offences.
(2) The amount for compounding of offences under this section shall be such as may be prescribed, subject to the minimum amount not being less than ten thousand rupees or fifty per cent. of the tax involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent. of the tax, whichever is higher.
(3) On payment of such compounding amount as may be determined by the Commissioner, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated.
Rules Related with Sec 138 : Rule 162
162. Procedure for compounding of offences.-
(1) An applicant may, either before or after the institution of prosecution, make an application under sub-section (1) of section 138 in FORM GST CPD-01 to the Commissioner for compounding of an offence.
(2) On receipt of the application, the Commissioner shall call for a report from the concerned officer with reference to the particulars furnished in the application, or any other information, which may be considered relevant for the examination of such application.
(3) The Commissioner, after taking into account the contents of the said application, may, by order in FORM GST CPD-02, on being satisfied that the applicant has co-operated in the proceedings before him and has made full and true disclosure of facts relating to the case, allow the application indicating the compounding amount and grant him immunity from prosecution or reject such application within ninety days of the receipt of the application.
(4) The application shall not be decided under sub-rule (3) without affording an opportunity of being heard to the applicant and recording the grounds of such rejection.
(5) The application shall not be allowed unless the tax, interest and penalty liable to be paid have been paid in the case for which the application has been made.
(6) The applicant shall, within a period of thirty days from the date of the receipt of the order under sub-rule (3), pay the compounding amount as ordered by the Commissioner and shall furnish the proof of such payment to him.
(7) In case the applicant fails to pay the compounding amount within the time specified in sub-rule (6), the order made under sub-rule (3) shall be vitiated and be void.
(8) Immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any material particulars or had given false evidence. Thereupon such person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and the provisions the Act shall apply as if no such immunity had been granted.
Chapter-XX
Transitional Provisions
| Section | Rules | Rules related | Sections related |
| 139. Migration of existing taxpayers | 117. Tax or duty credit carried forward under anyexisting law or on goods held in stock on the appointed day
118. Declaration to be made under clause (c) of subsection (11) of section 142 119. Declaration of stock held by a principal and jobworker 120. Details of goods sent on approval basis 120A. Revision of declaration in FORM GST TRAN-1 121. Recovery of credit wrongly availed |
22,24 | |
| 140. Transitional arrangements for input tax credit | 44A,117 | ||
| 141. Transitional provisions relating to job work | 117,119 | 73,74 | |
| 142. Miscellaneous transitional provisions | 118 | 12,13,51 |
Sec 139. Migration of existing taxpayers
(1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with.
(2) The final certificate of registration shall be granted in such form and manner and subject to such conditions as may be prescribed.
(3) The certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section 24.
Sec 140. Transitional arrangements for input tax credit
(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit of eligible duties carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law within such time and in such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:—
(i) where the said amount of credit is not admissible as input tax credit under this Act; or
(ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or
(iii) where the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government.
(2) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day within such time and in such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit unless the said credit was admissible as CENVAT credit under the existing law and is also admissible as input tax credit under this Act.
Explanation.––For the purposes of this sub-section, the expression “unavailed CENVAT credit” means the amount that remains after subtracting the amount of CENVAT credit already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of CENVAT credit to which the said person was entitled in respect of the said capital goods under the existing law.
(3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012—Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to the following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said registered person is eligible for input tax credit on such inputs under this Act;
(iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs;
(iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and (v) the supplier of services is not eligible for any abatement under this Act:
Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed.
(4) A registered person, who was engaged in the manufacture of taxable as well as exempted goods under the Central Excise Act, 1944 or provision of taxable as well as exempted services under Chapter V of the Finance Act, 1994, but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger,—
(a) the amount of CENVAT credit carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and
(b) the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or services, in accordance with the provisions of sub-section (3).
(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, within such time and in such manner as may be prescribed, subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day:
Provided that the period of thirty days may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding thirty days:
Provided further that said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this sub-section.
(6) A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to the following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said registered person is not paying tax under section 10;
(iii) the said registered person is eligible for input tax credit on such inputs under this Act;
(iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of inputs; and
(v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day.
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act even if credit under this Act, within such time and in such manner as may be prescribed, even if the invoices relating to such services are received on or after the appointed day.
(8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner within such time and in such manner as may be prescribed:
Provided that if the registered person furnishes his return for the period ending with the day immediately preceding the appointed day within three months of the appointed day, such credit shall be allowed subject to the condition that the said return is either an original return or a revised return where the credit has been reduced from that claimed earlier
Provided further that the registered person shall not be allowed to take credit unless the said amount is admissible as input tax credit under this Act:
Provided also that such credit may be transferred to any of the registered persons having the same Permanent Account Number for which the centralised registration was obtained under the existing law.
(9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed subject tosuch credit can be reclaimed within such time and in such manner as may be prescribed, subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day.
(10) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as may be prescribed.
Explanation 1.—For the purposes of sub-sections (1), (3), (4) and (6), the expression “eligible duties” means––
(i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957;
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975;
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975;
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978;
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985;
(vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985; and
(vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day.
Explanation 2.—For the purposes of sub-section (1) and (5), the expression “eligible duties and taxes” means––
(i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957;
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975;
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975;
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978;
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985;
(vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985;
(vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001; and
(viii) the service tax leviable under section 66B of the Finance Act, 1994, in respect of inputs and input services received on or after the appointed day.
Explanation 3.—For removal of doubts, it is hereby clarified that the expression “eligible duties and taxes” excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975.
Rules Related to Sec 140 : Rule 44 A & 117
[44A. Manner of reversal of credit of Additional duty of Customs in respect of Gold dore bar.–
The credit of Central tax in the electronic credit ledger taken in terms of the provisions of section 140 relating to the CENVAT Credit carried forward which had accrued on account of payment of the additional duty of customs levied under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), paid at the time of importation of gold dore bar, on the stock of gold dore bar held on the 1st day of July, 2017 or contained in gold or gold jewellery held in stock on the 1stday of July, 2017 made out of such imported gold dore bar, shall be restricted to one-sixth of such credit and five-sixth of such credit shall be debited from the electronic credit ledger at the time of supply of such gold dore bar or the gold or the gold jewellery made therefrom and where such supply has already been made, such debit shall be within one week from the date of commencement of these Rules.] Noted No. 80
117. Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day.-
(1) Every registered person entitled to take credit of input tax under section 140 shall, within ninety days of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the common portal specifying therein, separately, the amount of input tax credit of eligible duties and taxes, as defined in Explanation 2 to section 140, to which he is entitled under the provisions of the said section:
Provided that the Commissioner may, on the recommendations of the Council, extend the period of ninety days by a further period not exceeding ninety days.
Provided further that where the inputs have been received from an Export Oriented Unit or a unit located in Electronic Hardware Technology Park, the credit shall be allowed to the extent as provided in sub-rule (7) of rule 3 of the CENVAT Credit Rules, 2004.
[(1A) Notwithstanding anything contained in sub-rule (1), the Commissioner may, on the recommendations of the Council, extend the date for submitting the declaration electronically in FORM GST TRAN-1 by a further period not beyond [[31st March, 2020] Noted No. 205,206, in respect of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and in respect of whom the Council has made a recommendation for such extension.] Noted No. 207
(2) Every declaration under sub-rule (1) shall-
(a) in the case of a claim under sub-section (2) of section 140, specify separately the following particulars in respect of every item of capital goods as on the appointed day-
(i) the amount of tax or duty availed or utilized by way of input tax credit under each of the existing laws till the appointed day; and
(ii) the amount of tax or duty yet to be availed or utilized by way of input tax credit under each of the existing laws till the appointed day;
(b) in the case of a claim under sub-section (3) or clause (b) of sub-section (4) or sub-section (6) or sub-section (8) of section 140, specify separately the details of stock held on the appointed day;
(c) in the case of a claim under sub-section (5) of section 140, furnish the following details, namely:—
(i) the name of the supplier, serial number and date of issue of the invoice by the supplier or any document on the basis of which credit of input tax was admissible under the existing law;
(ii) the description and value of the goods or services;
(iii) the quantity in case of goods and the unit or unit quantity code thereof;
(iv) the amount of eligible taxes and duties or, as the case may be, the value added tax [or entry tax] charged by the supplier in respect of the goods or services; and
(v) the date on which the receipt of goods or services is entered in the books of account of the recipient.
(3) The amount of credit specified in the application in FORM GST TRAN-1 shall be credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the common portal.
(4) (a) (i) A registered person who was not registered under the existing law shall, in accordance with the proviso to sub-section (3) of section 140, be allowed to avail of input tax credit on goods (on which the duty of central excise or, as the case may be, additional duties of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975, is leviable) held in stock on the appointed day in respect of which he is not in possession of any document evidencing payment of central excise duty.
(ii) The input tax credit referred to in sub-clause (i) shall be allowed at the rate of sixty per cent. on such goods which attract central tax at the rate of nine per cent. or more and forty per cent. for other goods of the central tax applicable on supply of such goods after the appointed date and shall be credited after the central tax payable on such supply has been paid:
Provided that where integrated tax is paid on such goods, the amount of credit shall be allowed at the rate of thirty per cent. and twenty per cent. respectively of the said tax;
(iii) The scheme shall be available for six tax periods from the appointed date.
(b) The credit of central tax shall be availed subject to satisfying the following conditions, namely:-
(i) such goods were not unconditionally exempt from the whole of the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 or were not nil rated in the said Schedule;
(ii) the document for procurement of such goods is available with the registered person;
[(iii) The registered person availing of this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of sub-rule (2), submits a statement in FORM GST TRAN 2 by 31st March 2018, or within such period as extended by the Commissioner, on the recommendations of the Council, for eachof the six tax periods during which the scheme is in operation indicating therein, the details of supplies of such goods effected during the tax period:] Note No. 208
[Provided that the registered persons filing the declaration in FORM GST TRAN-1 in accordance with sub-rule (1A), may submit the statement in FORM GST TRAN-2 by [[30th April, 2020] Noted No. 209,210;
(iv) the amount of credit allowed shall be credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the common portal; and
(v) the stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person.
Sec 141. Transitional provisions relating to job work
(1) Where any inputs received at a place of business had been removed as such or removed after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place within six months from the appointed day: 1.
Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months:
Provided further that if such inputs are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142.
(2) Where any semi-finished goods had been removed from the place of business to any other premises for carrying out certain manufacturing processes in accordance with the provisions of existing law prior to the appointed day and such goods (hereafter in this section referred to as “the said goods”) are returned to the said place on or after the appointed day, no tax shall be payable, if the said goods, after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day.
Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months:
Provided further that if the said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142:
Provided also that the manufacturer may, in accordance with the provisions of the existing law, transfer the said goods to the premises of any registered person for the purpose of supplying therefrom on payment of tax in India or without payment of tax for exports within the period specified in this sub-section.
(3) Where any excisable goods manufactured at a place of business had been removed without payment of duty for carrying out tests or any other process not amounting to manufacture, to any other premises, whether registered or not, in accordance with the provisions of existing law prior to the appointed day and such goods, are returned to the said place on or after the appointed day, no tax shall be payable if the said goods, after undergoing tests or any other process, are returned to the said place within six months from the appointed day:
Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months:
Provided further that if the said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142:
Provided also that the manufacturer may, in accordance with the provisions of the existing law, transfer the said goods from the said other premises on payment of tax in India or without payment of tax for exports within the period specified in this sub-section.
(4) The tax under sub-sections (1), (2) and (3) shall not be payable, only if the manufacturer and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the manufacturer on the appointed day in such form and manner and within such time as may be prescribed.
Rules Related to Sec 141 : Rule 117 ( See below sec 140, Page No 353) 119
119. Declaration of stock held by a principal and job-worker.-
Every person to whom the provisions of section 141 apply shall, within [the period specified in rule 117 or such further period as extended by the Commissioner] Noted No. 212, submit a declaration electronically in FORM GST TRAN-1, specifying therein, the stock of the inputs, semi-finished goods or finished goods, as applicable, held by him on the appointed day.
Sec 142. Miscellaneous transitional provisions
(1) Where any goods on which duty, if any, had been paid under the existing law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the duty paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer:
Provided that if the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply.
(2) (a) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised upwards on or after the appointed day, the registered person who had removed or provided such goods or services or both shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under this Act;
(b) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised downwards on or after the appointed day, the registered person who had removed or provided such goods or services or both may issue to the recipient a credit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such credit note shall be deemed to have been issued in respect of an outward supply made under this Act:
Provided that the registered person shall be allowed to reduce his tax liability on account of issue of the credit note only if the recipient of the credit note has reduced his input tax credit corresponding to such reduction of tax liability.
(3) Every claim for refund filed by any person before, on or after the appointed day, for refund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944:
Provided that where any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act.
(4) Every claim for refund filed after the appointed day for refund of any duty or tax paid under existing law in respect of the goods or services exported before or after the appointed day, shall be disposed of in accordance with the provisions of the existing law:
Provided that where any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act.
(5) Every claim filed by a person after the appointed day for refund of tax paid under the existing law in respect of services not provided shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944.
(6) (a) every proceeding of appeal, review or reference relating to a claim for CENVAT credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of existing law, and any amount of credit found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act:
Provided that no refund shall be allowed of any amount of CENVAT credit where the balance of the said amount as on the appointed day has been carried forward under this Act;
(b) every proceeding of appeal, review or reference relating to recovery of CENVAT credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of existing law and if any amount of credit becomes recoverable as a result of such appeal, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act.
(7) (a) every proceeding of appeal, review or reference relating to any output duty or tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of duty or tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act.
(b) every proceeding of appeal, review or reference relating to any output duty or tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and any amount found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act.
(8) (a) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act;
(b) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law, notwithstanding anything to the contrary contained in the said law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act.
(9) (a) where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of CENVAT credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act;
(b) where any return, furnished under the existing law, is revised after the appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision, any amount is found to be refundable or CENVAT credit is found to be admissible to any taxable person, the same shall be refunded to him in cash under the existing law, notwithstanding anything to the contrary contained in the said law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and the amount rejected, if any, shall not be admissible as input tax credit under this Act.
(10) Save as otherwise provided in this Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act.
(11) (a) notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act of the State;
(b) notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994;
(c) where tax was paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed.
(12) Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day:
Provided that the said period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months:
Provided further that the tax shall be payable by the person returning the goods if such goods are liable to tax under this Act, and are returned after a period specified in this sub-section:
Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within a period specified in this sub-section.
(13) Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under any law of a State or Union territory relatingto Value Added Tax and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 51 shall be made by the deductor under the said section where payment to the said supplier is made on or after the appointed day.
Explanation.––For the purposes of this Chapter, the expressions “capital goods”, “Central Value Added Tax (CENVAT) credit”, “first stage dealer”, “second stage dealer”, or “manufacture” shall have the same meaning as respectively assigned to them in the Central Excise Act, 1944 or the rules made thereunder.
Rules related to sec 142: Rule 118
118. Declaration to be made under clause (c) of sub-section (11) of section 142.
Every person to whom the provision of clause (c) of sub-section (11) of section 142 applies, shall within [the period specified in rule 117 or such further period as extended by the Commissioner] Note No. 211, submit a declaration electronically in FORM GST TRAN-1 furnishing the proportion of supply on which Value Added Tax or service tax has been paid before the appointed day but the supply is made after the appointed day, and the Input Tax Credit admissible thereon.
Chapter-XXI
Miscellaneous
| Section | Rules | Rules related | Sections related |
| 143. Job work procedure | 122. Constitution of the Authority
123. Constitution of the Standing Committee and Screening Committee 124. Appointment, salary, allowances and other terms and conditions of service of the Chairman and Members of the Authority 125. Secretary to the Authority 126. Power to determine the Methodology 127. and procedure Duties of the Authority 128. Examination of application by the Standing Committee and Screening Committee 129. Initiation and conduct of Proceedings 130. Confidentiality of information 131. Cooperation with other agencies or statutory authorities 132. Power to summon persons to give evidence and produce documents 133. Order of the Authority 134. Decision to be taken by the Majority 135. Compliance by the registered person 136. Monitoring of the order 137. Tenure of Authority |
45,55,55A | |
| 144. Presumption as to documents in certain cases | |||
| 145. Admissibility of microfilms, facsimile copies of documents and computer printouts as documents and as evidence | |||
| 146. Common Portal | |||
| 147. Deemed exports | |||
| 148. Special procedure for certain processes | |||
| 149. Goods and services tax compliance rating | |||
| 150. Obligation to furnish information return | |||
| 151. Power to collect statistics | 133 | ||
| 152. Bar on disclosure of information | 150,151 | ||
| 153. Taking assistance from an expert | |||
| 154. Power to take samples | |||
| 155. Burden of proof | |||
| 156. Persons deemed to be public servants | |||
| 157. Protection of action taken under this Act | |||
| 158. Disclosure of information by a public servant | |||
| 159. Publication of information in respect of persons in certain cases | |||
| 160. Assessment proceedings, etc., not to be invalid on certain grounds | |||
| 161. Rectification of errors apparent on the face of record | |||
| 162. Bar on Juristiction of Civil Courts | |||
| 163. Levy of Fee | |||
| 164.Power of Govt to make rule | |||
| 165. Power to make regulations | |||
| 166.Laying rules, regulations and notifications | |||
| 167. Delegation of Powers | |||
| 168. Power to issue instructions and directions | |||
| 169. Service of notice in certain directions | |||
| 170. Rounding of tax etc | |||
| 171. Anti-profiteering measure | 122-137 | ||
| 172. Removal of difficulties | |||
| 173. Amendment of Act 32 of 1994 | |||
| 174. Repeal and saving |
Sec 143. Job work procedure
(1) A registered person (hereafter in this section referred to as the “principal”) may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall,––
(a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax;
(b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case—
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner.
Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.
(2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal.
(3) Where the inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out.
(4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job worker in accordance with the provisions of clause (b) of sub-section (1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out.
(5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered.
Explanation.––For the purposes of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker.
Rules related to sec 143 : Rule 45,55,55A
45. Conditions and restrictions in respect of inputs and capital goods sent to the job worker.-
(1) The inputs, semi-finished goods or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including where such goods are sent directly to a job-worker, [and where the goods are sent from one job worker to another job worker, the challan may be issued either by the principal or the job worker sending the goods to another job worker:
Provided that the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal:
Provided further that the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal.]81
(2) The challan issued by the principal to the job worker shall contain the details specified in rule 55.
(3) The details of challans in respect of goods dispatched to a job worker or received from a job worker [or sent from one job worker to another]82 during a quarter shall be included in FORM GST ITC-04 furnished for that period on or before the twenty-fifth day of the month succeeding the said quarter [or within such further period as may be extended by the Commissioner by a notification in this behalf:
Provided that any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.] Note No. 83
(4) Where the inputs or capital goods are not returned to the principal within the time stipulated in section 143,it shall be deemed that such inputs or capital goods had been supplied by the principal to the job worker on the day when the said inputs or capital goods were sent out and the said supply shall be declared in FORM GSTR-1 and the principal shall be liable to pay the tax along with applicable interest.
Explanation.- For the purposes of this Chapter,
(1) the expressions ―capital goods‖ shall include ―plant and machinery‖ as defined in the Explanation to section 17;
(2) for determining the value of an exempt supply as referred to in sub-section (3) of section 17-
(a) the value of land and building shall be taken as the same as adopted for the purpose of paying stamp duty; and
(b) the value of security shall be taken as one per cent. of the sale value of such security.
55. Transportation of goods without issue of invoice.-
(1) For the purposes of-
(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,
(b) transportation of goods for job work,
(c) transportation of goods for reasons other than by way of supply, or
(d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely:-
(i) date and number of the delivery challan;
(ii) name, address and Goods and Services Tax Identification Number of the consigner, if registered;
(iii) name, address and Goods and Services Tax Identification Number or Unique Identity Number of the consignee, if registered;
(iv) Harmonised System of Nomenclature code and description of goods;
(v) quantity (provisional, where the exact quantity being supplied is not known);
(vi) taxable value;
(vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee;
(viii) place of supply, in case of inter-State movement; and
(ix) signature.
(2) The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner, namely:
(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;
(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
(c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER.
(3) Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in rule 138.
(4) Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.
(5) Where the goods are being transported in a semi knocked down or completely knocked down condition [or in batches or lots] Note No. 103
(a) the supplier shall issue the complete invoice before dispatch of the first consignment;
(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and
(d) the original copy of the invoice shall be sent along with the last consignment.
[55A. Tax Invoice or bill of supply to accompany transport of goods.-
The person-in-charge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in accordance with the provisions of rules 46, 46A or 49 in a case where such person is not required to carry an e-way bill under these rules.]
Sec 144. Presumption as to documents in certain cases
Where any document––
(i) is produced by any person under this Act or any other law for the time being in force; or
(ii) has been seized from the custody or control of any person under this Act or any other law for the time being in force; or
(iii) has been received from any place outside India in the course of any proceedings under this Act or any other law for the time being in force, and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall—
(a) unless the contrary is proved by such person, presume—
(i) the truth of the contents of such document;
(ii) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person’s handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested;
(b) admit the document in evidence notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence.
Sec 145. Admissibility of microfilms, facsimile copies of documents and computer printouts as documents and as evidence
(1) Notwithstanding anything contained in any other law for the time being in force,—
(a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) a statement contained in a document and included in a printed material produced by a computer, subject to such conditions as may be prescribed; or
(d) any information stored electronically in any device or media, including any hard copies made of such information, shall be deemed to be a document for the purposes of this Act and the rules made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible.
(2) In any proceedings under this Act or the rules made thereunder, where it is desired to give a statement in evidence by virtue of this section, a certificate,—
(a) identifying the document containing the statement and describing the manner in which it was produced;
(b) giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer, shall be evidence of any matter stated in the certificate and for the purposes of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it.
Sec 146. Common Portal
The Government may, on the recommendations of the Council, notify the Common goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax, electronic way bill and for carrying out such other functions and for such purposes as may be prescribed.
Sec 147. Deemed exports
The Government may, on the recommendations of the Council, notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.
Sec 148. Special procedure for certain processes
The Government may, on the recommendations of the Council, and subject to such conditions and safeguards as may be prescribed, notify certain classes of registered persons, and the special procedures to be followed by such persons including those with regard to registration, furnishing of return, payment of tax and administration of such persons.
Sec 149. Goods and services tax compliance rating
(1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.
(2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.
(3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.
Sec 150. Obligation to furnish information return
(1) Any person, being—
(a) a taxable person; or
(b) a local authority or other public body or association; or
(c) any authority of the State Government responsible for the collection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for the collection of excise duty or customs duty; or
(d) an income tax authority appointed under the provisions of the Income-tax Act, 1961; or
(e) a banking company within the meaning of clause (a) of section 45A of the Reserve Bank of India Act, 1934; or
(f) a State Electricity Board or an electricity distribution or transmission licensee under the Electricity Act, 2003, or any other entity entrusted with such functions by the Central Government or the State Government; or
(g) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908; or
(h) a Registrar within the meaning of the Companies Act, 2013; or
(i) the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or
(j) the Collector referred to in clause (c) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or
(k) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956; or
(l) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996; or
(m) an officer of the Reserve Bank of India as constituted under section 3 of the Reserve Bank of India Act, 1934; or
(n) the Goods and Services Tax Network, a company registered under the Companies Act, 2013; or
(o) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25; or
(p) any other person as may be specified, on the recommendations of the Council, by the Government, who is responsible for maintaining record of registration or statement of accounts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being in force, shall furnish an information return of the same in respect of such periods, within such time, in such form and manner and to such authority or agency as may be prescribed.
(2) Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said authority may allow and if the defect is not rectified within the said period of thirty days or, the further period so allowed, then, notwithstanding anything contained in any other provisions of this Act, such information return shall be treated as not furnished and the provisions of this Act shall apply.
(3) Where a person who is required to furnish information return has not furnished the same within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon him a notice requiring furnishing of such information return within a period not exceeding ninety days from the date of service of the notice and such person shall furnish the information return.
Sec 151. Power to collect statistics
(1) The Commissioner may, if he considers that it is necessary so to do, by notification, direct that statistics may be collected relating to any matter dealt with by or in connection with this Act.
(2) Upon such notification being issued, the Commissioner, or any person authorised by him in this behalf, may call upon the concerned persons to furnish such information or returns, in such form and manner as may be prescribed, relating to any matter in respect of which statistics is to be collected .
Sec 152. Bar on disclosure of information
(1) No information of any individual return or part thereof with respect to any matter given for the purposes of section 150 or section 151 shall, without the previous consent in writing of the concerned person or his authorised representative, be published in such manner so as to enable such particulars to be identified as referring to a particular person and no such information shall be used for the purpose of any proceedings under this Act.
(2) Except for the purposes of prosecution under this Act or any other Act for the time being in force, no person who is not engaged in the collection of statistics under this Act or compilation or computerisation thereof for the purposes of this Act, shall be permitted to see or have access to any information or any individual return referred to in section 151.
(3) Nothing in this section shall apply to the publication of any information relating to a class of taxable persons or class of transactions, if in the opinion of the Commissioner, it is desirable in the public interest to publish such information.
Sec 153. Taking assistance from an expert
Any officer not below the rank of Assistant Commissioner may, having regard to the nature and complexity of the case and the interest of revenue, take assistance of any expert at any stage of scrutiny, inquiry, investigation or any other proceedings before him.
Sec 154. Power to take samples
The Commissioner or an officer authorised by him may take samples of goods from the possession of any taxable person, where he considers it necessary, and provide a receipt for any samples so taken.
Sec 155. Burden of proof
Where any person claims that he is eligible for input tax credit under this Act, the burden of proving such claim shall lie on such person.
Sec 156. Persons deemed to be public servants
All persons discharging functions under this Act shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.
Sec 157. Protection of action taken under this Act
(1) No suit, prosecution or other legal proceedings shall lie against the President, State President, Members, officers or other employees of the Appellate Tribunal or any other person authorised by the said Appellate Tribunal for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
(2) No suit, prosecution or other legal proceedings shall lie against any officer appointed or authorised under this Act for anything which is done or intended to be done in good faith under this Act or the rules made thereunder.
Sec 158. Disclosure of information by a public servant
(1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceedings before a criminal court), or in any record of any proceedings under this Act shall, save as provided in sub-section (3), not be disclosed.
(2) Notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save as otherwise provided in sub-section (3), require any officer appointed or authorised under this Act to produce before it or to give evidence before it in respect of particulars referred to in sub-section (1).
(3) Nothing contained in this section shall apply to the disclosure of,––
(a) any particulars in respect of any statement, return, accounts, documents, evidence, affidavit or deposition, for the purpose of any prosecution under the Indian Penal Code or the Prevention of Corruption Act, 1988, or any other law for the time being in force; or
(b) any particulars to the Central Government or the State Government or to any person acting in the implementation of this Act, for the purposes of carrying out the objects of this Act; or
(c) any particulars when such disclosure is occasioned by the lawful exercise under this Act of any process for the service of any notice or recovery of any demand; or
(d) any particulars to a civil court in any suit or proceedings, to which the Government or any authority under this Act is a party, which relates to any matter arising out of any proceedings under this Act or under any other law for the time being in force authorising any such authority to exercise any powers thereunder; or
(e) any particulars to any officer appointed for the purpose of audit of tax receipts or refunds of the tax imposed by this Act; or
(f) any particulars where such particulars are relevant for the purposes of any inquiry into the conduct of any officer appointed or authorised under this Act, to any person or persons appointed as an inquiry officer under any law for the time being in force; or
(g) any such particulars to an officer of the Central Government or of any State Government, as may be necessary for the purpose of enabling that Government to levy or realise any tax or duty; or
(h) any particulars when such disclosure is occasioned by the lawful exercise by a public servant or any other statutory authority, of his or its powers under any law for the time being in force; or
(i) any particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under this Act against a practising advocate, a tax practitioner, a practising cost accountant, a practising chartered accountant, a practising company secretary to the authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, a cost accountant, a chartered accountant or a company secretary, as the case may be; or
(j) any particulars to any agency appointed for the purposes of data entry on any automated system or for the purpose of operating, upgrading or maintaining any automated system where such agency is contractually bound not to use or disclose such particulars except for the aforesaid purposes; or
(k) any particulars to an officer of the Government as may be necessary for the purposes of any other law for the time being in force; or
(l) any information relating to any class of taxable persons or class of transactions for publication, if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.
Sec 159. Publication of information in respect of persons in certain cases
(1) If the Commissioner, or any other officer authorised by him in this behalf, is of the opinion that it is necessary or expedient in the public interest to publish the name of any person and any other particulars relating to any proceedings or prosecution under this Act in respect of such person, it may cause to be published such name and particulars in such manner as it thinks fit.
(2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the Appellate Authority under section 107 has expired without an appeal having been presented or the appeal, if presented, has been disposed of.
Explanation.––In the case of firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of the Commissioner, or any other officer authorised by him in this behalf, circumstances of the case justify it.
Sec 160. Assessment proceedings, etc., not to be invalid on certain grounds
(1) No assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, accepted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of this Act shall be invalid or deemed to be invalid merely by reason of any mistake, defect or omission therein, if such assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are in substance and effect in conformity with or according to the intents, purposes and requirements of this Act or any existing law.
(2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question at or in the earlier proceedings commenced, continued or finalised pursuant to such notice, order or communication.
Sec 161. Rectification of errors apparent on the face of record
Without prejudice to the provisions of section 160, and notwithstanding anything contained in any other provisions of this Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document, may rectify any error which is apparent on the face of record in such decision or order or notice or certificate or any other document, either on its own motion or where such error is brought to its notice by any officer appointed under this Act or an officer appointed under the State Goods and Services Tax Act or an officer appointed under the Union Territory Goods and Services Tax Act or by the affected person within a period of three months from the date of issue of such decision or order or notice or certificate or any other document, as the case may be:
Provided that no such rectification shall be done after a period of six months from the date of issue of such decision or order or notice or certificate or any other document:
Provided further that the said period of six months shall not apply in such cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission:
Provided also that where such rectification adversely affects any person, the principles of natural justice shall be followed by the authority carrying out such rectification.
Sec 162. Bar on jurisdiction of Civil Courts
Save as provided in sections 117 and 118, no civil court shall have jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be done under this Act.
Sec 163. Levy of fee
Wherever a copy of any order or document is to be provided to any person on an application made by him for that purpose, there shall be paid such fee as may be prescribed.
Sec 164. Power of Government to make rules
(1) The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.
(2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules.
(3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force.
(4) Any rules made under sub-section (1) or sub-section (2) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.
Sec 165. Power to make regulations
The Board may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.
Sec 166. Laying of rules, regulations and notifications
Every rule made by the Government, every regulation made by the Board and every notification issued by the Government under this Act, shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or in the notification, as the case may be, or both Houses agree that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be.
Sec 167. Delegation of powers
The Commissioner may, by notification, direct that subject to such conditions, if any, as may be specified in the notification, any power exercisable by any authority or officer under this Act may be exercisable also by another authority or officer as may be specified in such notification.
Sec 168. Power to issue instructions or directions
(1) The Board may, if it considers it necessary or expedient so to do for the purpose of uniformity in the implementation of this Act, issue such orders, instructions or directions to the central tax officers as it may deem fit, and thereupon all such officers and all other persons employed in the implementation of this Act shall observe and follow such orders, instructions or directions.
(2) The Commissioner specified in clause (91) of section 2, sub-section (3) of section 5, clause (b) of sub-section (9) of section 25, sub-sections (3) and (4) of section 35, sub-section (1) of section 37, sub-section (2) of section 38, sub-section (6) of section 39, sub-section (1) of section 44, sub-sections (4) and (5) of section 52, sub-section (5) of section 66 sub-section (1) of section 143, except the second proviso thereof, sub-section (1) of section 143, sub-section (1) of section 151, clause (l) of sub-section (3) of section 158 and section 167 shall mean a Commissioner or Joint Secretary posted in the Board and such Commissioner or Joint Secretary shall exercise the powers specified in the said sections with the approval of the Board.
Sec 169. Service of notice in certain circumstances
(1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely:—
(a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on behalf of the taxable person or to a person regularly employed by him in connection with the business, or to any adult member of family residing with the taxable person; or
(b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at his last known place of business or residence; or
(c) by sending a communication to his e-mail address provided at the time of registration or as amended from time to time; or
(d) by making it available on the common portal; or
(e) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or
(f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board of the office of the concerned officer or authority who or which passed such decision or order or issued such summons or notice.
(2) Every decision, order, summons, notice or any communication shall be deemed to have been served on the date on which it is tendered or published or a copy thereof is affixed in the manner provided in sub-section (1).
(3) When such decision, order, summons, notice or any communication is sent by registered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally taken by such post in transit unless the contrary is proved.
Sec 170. Rounding off of tax, etc.
The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.
Sec 171. Anti-profiteering measure
(1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.
(2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
(3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.
(3A) Where the Authority referred to in sub-section (2) after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub- section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered:
Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.
Explanation.— For the purposes of this section, the expression “profiteered” shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both.
Rules Related to sec 171: Rules 122 to 137 & 21
122. Constitution of the Authority.
The Authority shall consist of,-
(a) a Chairman who holds or has held a post equivalent in rank to a Secretary to the Government of India; and
(b) four Technical Members who are or have been Commissioners of State tax or central tax [for at least one year] Note No. 216 or have held an equivalent post under the existing law, to be nominated by the Council.
123. Constitution of the Standing Committee and Screening Committees
(1) The Council may constitute a Standing Committee on Anti-profiteering which shall consist of such officers of the State Government and Central Government as may be nominated by it.
(2) A State level Screening Committee shall be constituted in each State by the State Governments which shall consist of-
(a) one officer of the State Government, to be nominated by the Commissioner, and
(b) one officer of the Central Government, to be nominated by the Chief Commissioner
124. Appointment, salary, allowances and other terms and conditions of service of the Chairman and Members of the Authority:-
(1) The Chairman and Members of the Authority shall be appointed by the Central Government on the recommendations of a Selection Committee to be constituted for the purpose by the Council.
(2) The Chairman shall be paid a monthly salary of Rs. 2,25,000 (fixed) and other allowances and benefits as are admissible to a Central Government officer holding posts carrying the same pay:
Provided that where a retired officer is selected as a Chairman, he shall be paid a monthly salary of Rs. 2,25,000 reduced by the amount of pension.
[(3) The Technical Member shall be paid a monthly salary and other allowances and benefits as are admissible to him when holding an equivalent Group ‘A’ post in the Government of India: Provided that where a retired officer is selected as a Technical
Member, he shall be paid a monthly salary equal to his last drawn salary reduced by the amount of pension in accordance with the recommendations of the Seventh Pay Commission, as accepted by the Central Government.] Note No. 217
(4) The Chairman shall hold office for a term of two years from the date on which he enters upon his office, or until he attains the age of sixty- five years, whichever is earlier and shall be eligible for reappointment:
Provided that[a] Note No. 218 person shall not be selected as the Chairman, if he has attained the age of sixty-two years.
[Provided further that the Central Government with the approval of the Chairperson of the Council may terminate the appointment of the Chairman at any time.] Note No. 219
(5) The Technical Member of the Authority shall hold office for a term of two years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall be eligible for reappointment:
Provided that [a] Note No. 220 person shall not be selected as a Technical Member if he has attained the age of sixty-two years.
[Provided further that the Central Government with the approval of the Chairperson of the Council may terminate the appointment of the Technical Member at any time.] Note No. 221
125. [Secretary to the Authority.-
An officer not below the rank of Additional Commissioner (working in the Directorate General of [Anti-profiteering] Note No. 222) shall be the Secretary to the Authority.] Note No. 223
126. Power to determine the methodology and procedure.-
The Authority may determine the methodology and procedure for determination as to whether the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit has been passed on by the registered person to the recipient by way of commensurate reduction in prices.
127. Duties of the Authority.-
It shall be the duty of the Authority,-
(i) to determine whether any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices;
(ii) to identify the registered person who has not passed on the benefit of reduction in the rate of tax on supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices;
(iii) to order,
(a) reduction in prices;
(b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen percent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount not returned, as the case may be, in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Fund referred to in section 57;
(c) imposition of penalty as specified in the Act; and
(d) cancellation of registration under the Act.
[(iv) to furnish a performance report to the Council by the tenth [day] Note No. 224 of the close of each quarter.] Note No. 225
128. Examination of application by the Standing Committee and Screening Committee.-
(1) The Standing Committee shall, within a period of two months from the date of the receipt of a written application[or within such extended period not exceeding a further period of one month for reasons to be recorded in writing as may be allowed by the Authority,] Note No. 226 in such form and manner as may be specified by it, from an interested party or from a Commissioner or any other person, examine the accuracy and adequacy of the evidence provided in the application to determine whether there is prima-facie evidence to support the claim of the applicant that the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has not been passed on to the recipient by way of commensurate reduction in prices.
(2) All applications from interested parties on issues of local nature [or those forwarded by the Standing Committee] Note No. 227 shall first be examined by the State level Screening Committee and the Screening Committee shall,[within two months from the date of receipt of a written application, or within such extended period not exceeding a further period of one month for reasons to be recorded in writing as may be allowed by the Authority,] Note No. 228 upon being satisfied that the supplier has contravened the provisions of section 171, forward the application with its recommendations to the Standing Committee for further action.
129. Initiation and conduct of proceedings.-
(1) Where the Standing Committee is satisfied that there is a prima-facie evidence to show that the supplier has not passed on the benefit of reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, it shall refer the matter to the Director General of [Anti-profiteering] Note No. 229 for a detailed investigation.
(2) The Director General of [Anti-profiteering] Note No. 230 shall conduct investigation and collect evidence necessary to determine whether the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices.
(3) The Director General of [Anti-profiteering] Note No. 231 shall, before initiation of the investigation, issue a notice to the interested parties containing, inter alia, information on the following, namely:-
(a) the description of the goods or services in respect of which the proceedings have been initiated;
(b) summary of the statement of facts on which the allegations are based; and
(c) the time limit allowed to the interested parties and other persons who may have information related to the proceedings for furnishing their reply.
(4) The Director General of [Anti-profiteering] Note No. 232 may also issue notices to such other persons as deemed fit for a fair enquiry into the matter.
(5) The Director General of [Anti-profiteering] Note No. 233 shall make available the evidence presented to it by one interested party to the other interested parties, participating in the proceedings.
(6) The Director General of [Anti-profiteering] Note No. 234 shall complete the investigation within a period of [six] Note No. 235 months of the receipt of the reference from the Standing Committee or within such extended period not exceeding a further period of three months for reasons to be recorded in writing [as may be allowed by the Authority] Note No. 236 and, upon completion of the investigation, furnish to the Authority, a report of its findings along with the relevant records.
130. Confidentiality of information.-
(1)Notwithstanding anything contained in sub-rules (3) and (5) of rule 129 and sub-rule (2) of rule 133, the provisions of section 11 of the Right to Information Act, 2005 (22 of 2005), shall apply mutatis mutandis to the disclosure of any information which is provided on a confidential basis.
(2) The Director General of [Anti-profiteering] Note No. 237 may require the parties providing information on confidential basis to furnish non-confidential summary thereof and if, in the opinion of the party providing such information, the said information cannot be summarised, such party may submit to the Director General of [Anti-profiteering] Note No. 238 a statement of reasons as to why summarisation is not possible.
131. Cooperation with other agencies or statutory authorities.-
Where the Director General of [Anti-profiteering] Note No. 239 deems fit, he may seek opinion of any other agency or statutory authorities in the discharge of his duties.
132. Power to summon persons to give evidence and produce documents.-
(1) The [Authority,] Note No. 240 Director General of [Anti-profiteering] Note No. 241, or an officer authorised by him in this behalf, shall be deemed to be the proper officer to exercise the power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing under section 70 and shall have power in any inquiry in the same manner, as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).
(2) Every such inquiry referred to in sub-rule (1) shall be deemed to be a judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860).
133. Order of the Authority.-
(1) The Authority shall, within a period of [six] Note No. 242 months from the date of the receipt of the report from the Director General of [Anti-profiteering] Note No. 243 determine whether a registered person has passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices.
(2) An opportunity of hearing shall be granted to the interested parties by the Authority where any request is received in writing from such interested parties.
[(2A) The Authority may seek the clarification, if any, from the Director General of Anti Profiteering on the report submitted under sub-rule (6) of rule 129 during the process of determination under sub-rule (1).] Note No. 244
[(3) Where the Authority determines that a registered person has not passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, the Authority may order-
(a) reduction in prices;
(b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount including interest not returned, as the case may be;
(c) the deposit of an amount equivalent to fifty per cent. of the amount determined under the above clause[along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of deposit of such amount] Note No. 245 in the Fund constituted under section 57 and the remaining fifty per cent. of the amount in the Fund constituted under section 57 of the Goods and Services Tax Act, 2017 of the concerned State, where the eligible person does not claim return of the amount or is not identifiable;
(3) Where the Authority determines that a registered person has not passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, the Authority may order-
(a) reduction in prices;
(b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen percent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount including interest not returned, as the case may be, in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Fund referred to in section 57;
(c) imposition of penalty as specified under the Act; and
(d) cancellation of registration under the Act.‖
(d) imposition of penalty as specified under the Act; and
(e) cancellation of registration under the Act.
Explanation: For the purpose of this sub-rule, the expression, ―concerned State‖ means the State [or Union Territory ] Note No. 246 in respect of which the Authority passes an order.] Note No. 247
[(4) If the report of the Director General of [Anti-profiteering]248 referred to in sub-rule (6) of rule 129 recommends that there is contravention or even non-contravention of the provisions of section 171 or these rules, but the Authority is of the opinion that further investigation or inquiry is called for in the matter, it may, for reasons to be recorded in writing, refer the matter to the Director General of [Anti-profiteering] Note No. 249 to cause further investigation or inquiry in accordance with the provisions of the Act and these rules.] Note No. 250
[(5) (a) Notwithstanding anything contained in sub-rule (4), where upon receipt of the report of the Director General of Anti-profiteering referred to in sub-rule (6) of rule 129, the Authority has reasons to believe that there has been contravention of the provisions of section 171 in respect of goods or services or both other than those covered in the said report, it may, for reasons to be recorded in writing, within the time limit specified in sub-rule (1), direct the Director General of Anti-profiteering to cause investigation or inquiry with regard to such other goods or services or both, in accordance with the provisions of the Act and these rules.
(b) The investigation or enquiry under clause (a) shall be deemed to be a new investigation or enquiry and all the provisions of rule 129 shall mutatis mutandis apply to such investigation or enquiry.] Note No. 251
134. Decision to be taken by the majority.
“If the Members of the Authority differ in opinion on any point, the point shall be decided according to the opinion of the majority.”
134. Decision to be taken by the majority.-
(1) A minimum of three members of the Authority shall constitute quorum at its meetings.
(2) If the Members of the Authority differ in their opinion on any point, the point shall be decided according to the opinion of the majority of the members present and voting, and in the event of equality of votes, the Chairman shall have the second or casting vote. Note No. 252
135. Compliance by the registered person.-
Any order passed by the Authority under these rules shall be immediately complied with by the registered person failing which action shall be initiated to recover the
amount in accordance with the provisions of the Integrated Goods and Services Tax Act or the Central Goods and Services Tax Act or the Union territory Goods and Services Tax Act or the State Goods and Services Tax Act of the respective States, as the case may be.
136. Monitoring of the order.-
The Authority may require any authority of central tax, State tax or Union territory tax to monitor the implementation of the order passed by it.
137. Tenure of Authority.-
The Authority shall cease to exist after the expiry of [four years] Note No. 253 from the date on which the Chairman enters upon his office unless the Council recommends otherwise.
Explanation.-For the purposes of this Chapter,
(a) Authority‖ means the National Anti-profiteering Authority constituted under rule 122;
(b) Committee‖ means the Standing Committee on Anti-profiteering constituted by the Council in terms of sub-rule (1) of rule 123 of these rules;
(c) interested party‖ includes-
a. suppliers of goods or services under the proceedings; and
b. recipients of goods or services under the proceedings;
c. [any other person alleging, under sub-rule (1) of rule 128, that a registered person has not passed on the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices.] Note No. 254
(d)―Screening Committee‖ means the State level Screening Committee constituted in terms of sub-rule (2) of rule 123 of these rules.
21. Registration to be cancelled in certain cases.-
The registration granted to a person is liable to be cancelled, if the said person,-
(a) does not conduct any business from the declared place of business; or
(b) issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder; or
(c) violates the provisions of section 171 of the Act or the rules made thereunder] Note No. 27.
(d) violates the provision of rule 10A] Note No. 28
[Rule 21A Suspension of registration.-
(1) Where a registered person has applied for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration under rule 22.
(2) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29 or under rule 21, he may, after affording the said person a reasonable opportunity of being heard, suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration under rule 22.
(3) A registered person, whose registration has been suspended under sub-rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
[Explanation.- For the purposes of this sub-rule, the expression ―shall not make any taxable supply‖ shall mean that the registered person shall not issue a tax invoice and, accordingly, not charge tax on supplies made by him during the period of suspension.] Note No. 29
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect.] Note No. 30
[(5) Where any order having the effect of revocation of suspension of registration has been passed, the provisions of clause (a) of sub-section (3) of section 31 and section 40 in respect of the supplies made during the period of suspension and the procedure specified therein shall apply.] Note No. 31
Sec 172. Removal of difficulties
(1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:
Provided that no such order shall be made after the expiry of a period of three years five years from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.
Sec 173. Amendment of Act 32 of 1994
Save as otherwise provided in this Act, Chapter V of the Finance Act, 1994 shall be omitted.
Sec 174. Repeal and saving
(1) Save as otherwise provided in this Act, on and from the date of commencement of this Act, the Central Excise Act, 1944 (except as respects goods included in entry 84 of the Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, the Additional Duties of Excise (Goods of Special Importance) Act, 1957, the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, and the Central Excise Tariff Act, 1985 (hereafter referred to as the repealed Acts) are hereby repealed.
(2) The repeal of the said Acts and the amendment of the Finance Act, 1994 (hereafter referred to as “such amendment” or “amended Act”, as the case may be) to the extent mentioned in the sub-section (1) or section 173 shall not—
(a) revive anything not in force or existing at the time of such amendment or repeal; or
(b) affect the previous operation of the amended Act or repealed Acts and orders or anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the amended Act or repealed Acts or orders under such repealed or amended Acts:
Provided that any tax exemption granted as an incentive against investment through a notification shall not continue as privilege if the said notification is rescinded on or after the appointed day; or
(d) affect any duty, tax, surcharge, fine, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Act or repealed Acts
(e) affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so amended or repealed;
(f) affect any proceedings including that relating to an appeal, review or reference, instituted before on, or after the appointed day under the said amended Act or repealed Acts and such proceedings shall be continued under the said amended Act or repealed Acts as if this Act had not come into force and the said Acts had not been amended or repealed.
(3) The mention of the particular matters referred to in sub-sections (1) and (2) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 with regard to the effect of repeal.
SCHEDULE I
[See section 7]
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION
1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business:
Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.
3. Supply of goods—
(a) by a principal to his agent where the agent undertakes to supply such goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such goods on behalf of the principal.
4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.
SCHEDULE II
[See section 7]
ACTIVITIES OR TRANSACTIONS TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES
1. Transfer
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of services;
(b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services.
3. Treatment or process
Any treatment or process which is applied to another person’s goods is a supply of services.
4. Transfer of business assets
(a) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person;
(b) where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services;
(c) where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless—
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed to be a taxable person.
5. Supply of services
The following shall be treated as supply of services, namely:—
(a) renting of immovable property;
(b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
Explanation.—For the purposes of this clause—
(1) the expression “competent authority” means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:—
(i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972; or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority;
(2) the expression “construction” includes additions, alterations, replacements or remodelling of any existing civil structure;
(3) temporary transfer or permitting the use or enjoyment of any intellectual property right;
(4) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software;
(5) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; and
(f) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.
8. Composite supply
The following composite supplies shall be treated as a supply of services, namely:—
(a) works contract as defined in clause (119) of section 2; and
(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.
7. Supply of Goods
The following shall be treated as supply of goods, namely:—
Supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration.
SCHEDULE III
[See section 7]
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES
1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities;
(b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause
4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
6. Actionable claims, other than lottery, betting and gambling.
7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India.
(a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.
Explanation1.—For the purposes of paragraph 2, the term “court” includes District Court, High Court and Supreme Court.
Explanation 2.––For the purposes of paragraph 8, the expression
“ware housed goods” shall have the same meaning as assigned to it in the Customs Act, 1962.
Rules not coded in Sections
1. Short title and Commencement.-
(1) These rules may be called the Central Goods and Services Tax Rules, 2017.
(2) They shall come into force with effect from 22nd June, 2017.
2. Definitions.-
In these rules, unless the context otherwise requires,-
(a) Act‖ means the Central Goods and Services Tax Act, 2017 (12 of 2017);
(b) FORM‖ means a Form appended to these rules;
(c) section‖ means a section of the Act;
(d) Special Economic Zone‖ shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(e) words and expressions used herein but not defined and defined in the Act shall have the meanings respectively assigned to them in the Act.
14. Grant of registration to a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient.-
(1) Any person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient shall electronically submit an application for registration, duly signed or verified through electronic verification code, in FORM GST REG-10, at the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
(2) The applicant referred to in sub-rule (1) shall be granted registration, in FORM GST REG-06, subject to such conditions and restrictions and by such officer as may be notified by the Central Government on the recommendations of the Council.
24. Migration of persons registered under the existing law.-
(1) (a) Every person, other than a person deducting tax at source or an Input Service Distributor, registered under an existing law and having a Permanent Account Number issued under the provisions of the Income-tax Act, 1961 (Act 43 of 1961) shall enrol on the common portal by validating his e-mail address and mobile number, either directly or through a Facilitation Centre notified by the Commissioner.
(b) Upon enrolment under clause (a), the said person shall be granted registration on a provisional basis and a certificate of registration in FORM GST REG-25, incorporating the Goods and Services Tax Identification Number therein, shall be made available to him on the common portal:
Provided that a taxable person who has been granted multiple registrations under the existing law on the basis of a single Permanent Account Number shall be granted only one provisional registration under the Act:
(2)(a) Every person who has been granted a provisional registration under sub-rule (1) shall submit an application electronically in FORM GST REG–26, duly signed or verified through electronic verification code, along with the information and documents specified in the said application, on the common portal either directly or through a Facilitation Centre notified by the Commissioner.
(b) The information asked for in clause (a) shall be furnished within a period of three months or within such further period as may be extended by the Commissioner in this behalf.
(c) If the information and the particulars furnished in the application are found, by the proper officer, to be correct and complete, a certificate of registration in FORM GST REG-06 shall be made available to the registered person electronically on the common portal.
(3) Where the particulars or information specified in sub-rule (2) have either not been furnished or not found to be correct or complete, the proper officer shall, after serving a notice to show cause in FORM GST REG-27 and after affording the person concerned a reasonable opportunity of being heard, cancel the provisional registration granted under sub-rule (1) and issue an order in FORM GST REG-28:
[(3A) Where a certificate of registration has not been made available to the applicant on the common portal within a period of fifteen days from the date of the furnishing of information and particulars referred to in clause (c) of sub-rule (2) and no notice has been issued under sub-rule (3) within the said period, the registration shall be deemed to have been granted and the said certificate of registration, duly signed or verified through electronic verification code, shall be made available to the registered person on the common portal.
Provided that the show cause notice issued in FORM GST REG- 27 can be withdrawn by issuing an order in FORM GST REG- 20, if it is found, after affording the person an opportunity of being heard, that no such cause exists for which the notice was issued.] Note No. 35
―Physical verification of business premises in certain cases.-
Where the proper officer is satisfied that the physical verification of the place of business of a registered person is required after the grant of registration, he may get such verification done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification.‖
(4) Every person registered under any of the existing laws, who is not liable to be registered under the Act may, on or before [31st March, 2018] Note No. 36,37, at his option, submit an application electronically in FORM GST REG-29 at the common portal for the cancellation of registration granted to him and the proper officer shall, after conducting such enquiry as deemed fit, cancel the said registration.
79. Communication and rectification of discrepancy in details furnished by the e-commerce operator and the supplier.-
(1) Any discrepancy in the details furnished by the operator and those declared by the supplier shall be made available to the supplier electronically in FORM GST MIS-3 and to the e-commerce operator electronically in FORM GST MIS–4 on the common portal on or before the last date of the month in which the matching has been carried out.
(2) A supplier to whom any discrepancy is made available under sub-rule (1) may make suitable rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy is made available.
(3) An operator to whom any discrepancy is made available under sub-rule (1) may make suitable rectifications in the statement to be furnished for the month in which the discrepancy is made available.
(4) Where the discrepancy is not rectified under sub-rule (2) or sub-rule (3), an amount to the extent of discrepancy shall be added to the output tax liability of the supplier in his return in FORM GSTR-3 for the month succeeding the month in which the details of discrepancy are made available and such addition to the output tax liability and interest payable thereon shall be made available to the supplier electronically on the common portal in FORM GST MIS–3.
82. Details of inward supplies of persons having Unique Identity Number.-
(1) Every person who has been issued a Unique Identity Number and claims refund of the taxes paid on his inward supplies, shall furnish the details of such supplies of taxable goods or services or both electronically in FORM GSTR-11, along with application for such refund claim, through the common portal either directly or through a Facilitation Centre notified by the Commissioner.
(2) Every person who has been issued a Unique Identity Number for purposes other than refund of the taxes paid shall furnish the details of inward supplies of taxable goods or services or both as may be required by the proper officer in FORM GSTR-11.
120. Details of goods sent on approval basis.-
Every person having sent goods on approval under the existing law and to whom sub-section (12) of section 142 applies shall, within [the period specified in rule 117 or such further period as extended by the Commissioner] Note No. 213, submit details of such goods sent on approval in FORM GST TRAN-1.
[120A.[Revision of declaration in FORM GST TRAN-1] Note No. 214
Every registered person who has submitted a declaration electronically in FORM GST TRAN-1 within the time period specified in rule 117, rule 118, rule 119 and rule 120 may revise such declaration once and submit the revised declaration in FORM GST TRAN-1 electronically on the common portal within the time period specified in the said rules or such further period as may be extended by the Commissioner in this behalf.] Note No. 215
121. Recovery of credit wrongly availed.-
The amount credited under sub-rule (3) of rule 117 may be verified and proceedings under section 73 or, as the case may be, section 74 shall be initiated in respect of any credit wrongly availed, whether wholly or partly.
Note
1 Substituted for the word [Rules] vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
2 Inserted vide Notf no. 30/2020 – CT dt. 03.04.2020 wef 31.03.2020
3 Substituted for the word [ninety days] vide Notf no. 03/2018- CT dt. 23.01.2018
4 Substituted vide Notf no. 45/2017-CT dt. 13.10.2017.
5 Substituted for the word [sixty] with effect from 17.08.2017 vide Notf no. 22/2017 – CT dt. 17.08.2017
6 Inserted vide Notf no. 34/2017 – CT dt. 15.09.2017
11 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
12 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
13 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020
14 Inserted vide Notf no.16/2020 – CT dt. 23.03.2020 wef 01.04.2020
15 Substituted vide Notf no. 7/2017-CT dt.27.06.2017 for the words ―digitally signed‖
16 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
17 Substituted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019 for ―Separate registration for multiple business verticals within a State or a Union territory.
18 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019
19 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019
20 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
21 Substituted vide Notf no. 7/2017-CT dt. 27.06.2017 for ―signed‖
22 Inserted vide Notf no. 75/2017 – CT dt. 29.12.2017
23 Inserted vide Notf no. 22/2017 – CT dt. 17.08.2017
24 Substituted vide Notf no. 7/2017-CT dt. 27.06.2017 for ―the said rule‖
25 Inserted vide Notf no. 75/2017-CT dt. 29.12.2017
26 Omitted vide Notf no. 03/2018-CT dt. 23.01.2018
27 Inserted vide Notf no. 07/2017-CT dt. 27.06.2017
28 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
29 Inserted vide Notf no. 49/2019-CT dt. 09.10.2019
30 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
31 Inserted vide Notf no. 49/2019-CT dt. 09.10.2019
32 Omitted vide Notf no. 7/2017-CT dt. 27.06.2017
33 Inserted vide Notf no. 39/2018-CT dt. 04.09.2018
34 Inserted vide Notf no. 20/2019 – CT dt. 23.04.2019
35 Inserted vide Notf no. 7/2017-CT dt. 27.06.2017
36 Substituted for [30th October, 2017] vide Notf no. 51/2017-CT dt. 28.10.2017
37 Substituted for [31st December, 2017] vide Notf no. 03/2018- CT dt. 23.01.2018
38 Substituted vide Notf no. 16/2020 – CT dt. 23.03.2020 for
39 Substituted vide Notf no. 7/2017-CT dt. 27.06.2017 for ―specified under the provisions of the Information Technology Act, 2000 (21 of 2000)‖
40 Substituted vide Notf no.08/2020 – CT dt. 02.03.2020 wef 01.03.2020 for‖
41 Inserted vide Notf no. 03/2018- CT dt. 23.01.2018
42 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from 01.07.2019
43 Amended vide Notf no. 17/2017-CT dt. 27.07.2017.
49 Substituted vide Notf no. 22/2017 – CT dt. 01.07.2017
50 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019
51 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef 01.02.2019
52 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
53 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
54 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for”
55 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
56 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for ―Provided‖
57 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
58 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for ―(l) the amount ‘C3′ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax;’
59 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for ―added to the output tax liability of the registered person:’
60 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for ―The input tax credit’
61 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for ―added to the output tax liability of the registered person’
62 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
63 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
64 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
65 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
66 Substituted vide Notf no. 16/2020 – CT dt. 23.03.2020 wef 01.04.2020 for
67 Substituted vide Notf no. 16/2020 – CT dt. 23.03.2020 wef 01.04.2020 for
68 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020 wef 01.04.2020
69 Omitted vide Notf no. 16/2020 – CT dt. 23.03.2020 wef 01.04.2020
70 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
71 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
72 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for ―Provided‖
73 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
74 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
75 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for
76 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
77 Inserted vide Notf no. 55/2017-CT dt. 15.11.2017
78 Explanation substituted vide Notf no. 03/2018- CT dt. 23.01.2018.
79 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019
80 Inserted vide Notf no. 22/2017-CT dt. 17.08.2017
81 Inserted vide Notf no. 14/2018-CT dt. 23.03.2018
82 Omitted vide Notf no. 74/2018-CT dt. 31.12.2018
83 Inserted vide Notf no. 54/2017-CT dt. 28.10.2017
84 Amended vide Notf no. 17/2017-CT dt. 27.07.2017. Till then it read as follows –
85 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019 with effect from 01.09.2019
86 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
87 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from a date to be notified later
88 Inserted vide Notf no. 45/2017-CT dt. 13.10.2017
89 Inserted vide Notf no. 68/2019-CT dt. 13.12.2019
90 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
91 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from a date to be notified later
92 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
93 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
94 Omitted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
95 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
96 Inserted vide Notf no. 03/2018- CT dt. 23.01.2018
97 Substituted for ―shall‖ vide Notf no. 55/2017-CT dt. 15.11.2017
98 Inserted vide Notf no. 45/2017-CT dt. 13.10.2017
99 Inserted vide Notf no. 45/2017-CT dt. 13.10.2017
100 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
101 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
102 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019 with effect from 01.09.2019
103 Inserted vide Notf no. 39/2018-CT dt. 04.09.2018
104 Inserted vide Notf no. 03/2018- CT dt. 23.01.2018
105 Inserted vide Notf no. 28/2018-CT dt. 19.06.2018
106 Substituted wef 01.07.2017 for ―[(5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, [specify the manner and conditions subject to which the] return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.” vide Notf no. 49/2019 – CT dt 09.10.2019
107 Inserted wef 01.07.2017 vide Notf no. 17/2017-CT dt. 27.07.2017
108 Omitted w.e.f. 01.07.2017 vide Notf no. 49/2019 – CT dt 09.10.2019
109 Substituted vide Notf no. 20/2019 – CT dt. 23.04.2019 for ―Form and manner of submission of quarterly return by the composition supplier”
110 Substituted vide Notf no. 20/2019 – CT dt. 23.04.2019 for ―paying tax under section 10 shall, on the basis of details contained in FORM GSTR-4A, and where required, after adding, correcting or deleting the details, furnish the quarterly return in FORM GSTR-4‖
111 Inserted vide Notf no. 45/2017-CT dt. 13.10.2017
112 Omitted vide Notf no. 20/2019 – CT dt. 23.04.2019
113 Substituted vide Notf no. 20/2019 – CT dt. 23.04.2019 for ―return under sub-rule (1) shall discharge his liability towards tax, interest, penalty, fees or any other amount‖
114 Inserted vide Notf no. 20/2019 – CT dt. 23.04.2019 electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
115 Omitted vide Notf no. 20/2019 – CT dt. 23.04.2019
116 Inserted vide Notf no. 20/2019 – CT dt. 23.04.2019
117 Substituted vide Notf no. 20/2019 – CT dt. 23.04.2019 for ―the details relating to the period prior to his opting for payment of tax under section 9 in FORM GSTR- 4 till the due date of furnishing the return for the quarter ending September of the succeeding financial year or furnishing of annual return of the preceding financial year, whichever is earlier‖
118 Inserted vide Notf no. 20/2019 – CT dt. 23.04.2019
119 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
120 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019
121 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019
122 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
123 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019
124 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019
125 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
126 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
127 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020
128 Substituted for ―Central Board of Excise‖ vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
129 Substituted for the word ―eighteen months‖ vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
130 Substituted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019 for ―A goods and services tax practitioner can undertake any or all of the following activities on behalf of a registered person, if so authorised by him to-
132 Inserted vide Notf no. 60/2018 – CT dt. 30.10.2018
133 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019 with effect from a date to be notified later
134 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
135 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
136 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020
137 Inserted vide Notf no. 75/2019 – CT dt 26.12.2019
138 Inserted vide Notf no. 22/2017-CT dt. 17.08.2017
139 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019
140 Inserted vide Notf no. 22/2017-CT dt. 17.08.2017
141 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019
142 Omitted vide Notf no. 31/2019 – CT dt. 28.06.2019
143 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later
144 Inserted vide Notf no. 16/2019-CT dt. 29.03.2019
145 Substituted vide Notf no. 47/2017-CT dt. 18.10.2017 for
146 Substituted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019 for
147 Substituted vide Notf no. 16/2020 – CT dt. 23.03.2020 for
148 Substituted vide Notf no. 39/2018-CT dt. 04.09.2018 for:
149 Substituted vide Notf no. 54/2018-CT dt. 09.10.2018 for
150 Substituted vide Notf no. 03/2018- CT dt. 23.01.2018 w.e.f 23.10.201.
151 Substituted wef 23.10.2017 vide Notf no. 75/2019 – CT dt 26.12.2019 for
152 Substituted vide Notf no. 74/2018-CT dt. 31.12.2018 for ―(b) ―Adjusted Total turnover‖ shall have the same meaning as assigned to it in sub-rule (4).‖
153 Amendment made effective with effect from 01.07.2017 vide Notf no. 26/2018-CT dt. 13.06.2017
154 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
155 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later for ―order‖
156 Inserted wef 24.09.2019 vide Notf no. 49/2019 – CT dt 09.10.2019
157 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later for ―order‖
158 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later for ―order‖
159 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
160 Inserted wef 24.09.2019 vide Notf no. 49/2019-CT dt. 09.10.2019
161 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020
162 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020
163 Substituted vide vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later for ―advice‖
164 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later
165 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later for ―advice‖
166 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef a date to be notified later for ―advice‖
167 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
168 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from a date to be notified later
169 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020
170 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from a date to be notified later for ―an advice‖
171 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 with effect from a date to be notified later for ―payment advice‖
172 Inserted vide Notf no. 75/2017-CT dt 29.12.2017
173 Omitted vide Notf no. 75/2017-CT dt 29.12.2017
174 Omitted vide Notf no. 75/2017-CT dt 29.12.2017. Amendment made effective with effect from 01.07.2017 vide Notf no. 26/2018-CT dt. 13.06.2017
175 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019 wef 01.07.2019
176 Inserted wef 23.10.2017 vide Notf no. 75/2017-CT dt 29.12.2017
177 Substituted for the words ―an exporter‖ w.e.f 23.10.2017 vide Notf no. 03/2018- CT dt. 23.01.2018
178 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
179 Substituted for the words ‗‘ relevant export invoices‖ w.e.f.23.10.2017 vide Notf no. 03/2018- CT dt. 23.01.2018
180 Inserted vide Notf no. 51/2017-CT dt. 28.10.2017
181 Substituted for the words ―the system designated by the Customs shall process the claim for refund‖ w.e.f 23.10.2017 vide Notf no.03/2018-CT dt. 23.01.2018
182 Inserted wef 23.10.2017 vide Notf no. 75/2017-CT dt 29.12.2017
183 Substituted vide Notf no. 54/2018-CT dt. 09.10.2018 for:
184 Substituted w.e.f 23.10.2017 Notf no. 53/2018-CT dt. 09.10.2018 for: ―
185 Substituted w.e.f 23.10.2017, vide Notf no. 39/2018-CT dt. 04.09.2018 for:
186 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020 wef 23.10.2017
187 Substituted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019 for ―Refund of integrated tax paid on export‖
188 Inserted vide Notf no. 47/2017-CT dt. 18.10.2017
189 Inserted vide Notf no. 03/2019-CT dt. 29.01.2019 wef 01.02.2019
190 Inserted vide Notf no. 51/2017-CT dt. 28.10.2017
191 Inserted vide Notf no. 16/2020 – CT dt. 23.03.2020
192 Inserted vide Notf no. 26/2018-CT dt. 13.06.2018
193 Inserted wef 01.07.2017 vide Notf no. 49/2019-CT dt. 09.10.2019
194 Omitted w.e.f. 01.07.2017 vide Notf no. 49/2019-CT dt. 09.10.2019
195 Substituted vide Notf no. 21/2018-CT dt. 18.04.2018 for Consumer Welfare Fund.
196 Inserted vide Notf no. 55/2017-CT dt. 15.11.2017
197 Substituted vide Notf No. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for
198 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
199 Substituted wef 01.07.2017 vide Notf no. 22/2017 – CT dt. 17.08.2017
200 Inserted vide Notf no. 55/2017-CT dt. 15.11.2017
201 Substituted for ―the Additional Commissioner (Appeals)‖vide Notf no. 60/2018 – CT dt. 30.10.2018 within three months from the date on which the said decision or order is communicated to such person.
202 Substituted for ―the Additional Commissioner (Appeals)‖vide Notf no. 60/2018 – CT dt. 30.10.2018
203 Inserted vide Notf no. 55/2017-CT dt. 15.11.2017
204 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018
205 Substituted vide Notf no. 49/2019-CT dt. 09.10.2019 for ―31st March, 2019‖
206 Substituted for the figures, letters and word [31st December, 2019] with effect from 31.12.2019 vide Notf no. 02/2020-CT dt. 01.01.2020
207 Inserted vide Notf no. 48/2018-CT dt. 10.09.2018
208 Substituted vide Notf No. 12/2018-CT dt. 07.03.2018, for ―the registered person availing of this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of sub-rule (2), submits a statement in FORM GST TRAN 2 at the end of each of the six tax periods during which the scheme is in operation indicating therein, the details of supplies of such goods effected during the tax period;‖
209 Substituted vide Notf no. 49/2019-CT dt. 09.10.2019 for ―30th April, 2019‖
210 Substituted for the figures, letters and word [31st January, 2020] vide Notf no. 02/2020- CT dt. 01.01.2020
211 Substituted vide Notf no. 36/2017-CT dt. 29.09.2017 for ―a period of ninety days of the appointed day‖
212 Substituted vide Notf no. 36/2017-CT dt. 29.09.2017 for ―ninety days of the appointedday‖
213 Substituted vide Notf no. 36/2017-CT dt. 29.09.2017 for ―ninety days of the appointed day‖
214 Inserted vide Notf no. 36/2017-CT dt. 29.09.2017
215 Inserted vide Notf no. 34/2017 – CT dt. 15.09.2017
216 Inserted vide Notf no. 34/2017 – CT dt. 15.09.2017
217 Substituted vide Notf no. 34/2017 – CT dt. 15.09.2017
218 Inserted vide Notification No. 14/2018-CT dt. 23.03.2018
219 Substituted vide Notf no. 55/2017-CT dt. 15.11.2017 for ―Provided further that upon the recommendations of the Council and subject to an opportunity of being heard, the Central Government may terminate the appointment of the Chairman at any time.‖
220 Inserted vide Notification No. 14/2018-CT dt.23.03.2018
221 Substituted vide Notf no. 55/2017-CT dt. 15.11.2017 for ―Provided further that upon the recommendations of the Council and subject to an opportunity of being heard, the Central Government may terminate the appointment of the Technical Member at any time.‖
222 Substituted for the word ―Safeguards‖ vide Notf no. 29/2018-CT dt. 06.07.2018 [w.e.f 12.06.2018]
223 Substituted vide Notf no. 14/2018-CT dt. 23.03.2018 for ―The Additional Director General of Safeguards under the Board shall be the Secretary to the Authority.‖
224 Inserted vide Notf no. 14/2018-CT dt. 23.03.2018
225 Inserted vide Notf no. 34/2017 – CT dt. 15.09.2017
226 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
227 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
228 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
229 Substituted for the word ―Safeguards‖ vide Notf no. 29/2018-CT dt. 06.07.2018 [w.e.f 12.06.2018]
230 Ibid
231 Ibid.
232 Ibid.
233 Ibid.
234 Ibid.
235 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 for ―three‖
236 Substituted vide Notf no. 14/2018-CT dt. 23.03.2018 for ―as allowed by the Standing Committee‖.
237 Substituted for the word ―Safeguards‖ vide Notf no. 29/2018-CT dt. 06.07.2018 wef 12.06.2018
238 Ibid.
239 Ibid.
240 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
241Ibid.
242 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 for ―three‖
243 Ibid.
244 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
245 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
246 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
247 Substituted vide Notf no. 26/2018-CT dt. 13.06.2018, for:
248 Substituted for the word ―Safeguards‖ vide Notf no. 29/2018-CT dt. 06.07.2018
249 Ibid.
250 Inserted vide Notf no. 14/2018-CT dt. 23.03.2018
251 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
252 Substituted vide Notf no. 14/2018-CT dt. 23.03.2018 for ―
253 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019
254 Inserted vide Notf no. 14/2018-CT dt. 23.03.2018
255 substituted vide Notf no. 74/2018-CT dt. 31.12.2018 for
256 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
257 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
258 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
259 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
260 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
261 Inserted vide Notf no. 26/2018-CT dt.13.06.2018
265 Inserted vide Notf no. 31/2019 – CT dt. 28.06.2019
266 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 for ―returns‖
267 Substituted vide Notf no. 31/2019 – CT dt. 28.06.2019 for ―tax periods‖
268 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019
269 Inserted vide Notf no. 33/2019-CT dt. 18.07.2019
270 Inserted vide Notf no. 74/2018-CT dt. 31.12.2018. To be effective from 21.08.2019 vide Notf No. 25/2019-CT dt. 21.06.2019
271 Inserted vide Notf no. 14/2018-CT dt. 23.03.2018 wef 01.04.2018
272 Inserted with effect from 11.01.2020 vide Notf no. 75/2019- CT dt. 26.12.2019
273 Substituted vide Notf no. 16/2020 – CT dt. 23.03.2020 for the word ―Commissioner‖
274 Inserted vide Notf no. 49/2019-CT dt. 09.10.2019
275 Inserted vide Notf no. 49/2019-CT dt. 09.10.2019
276 Inserted vide Notf no. 49/2019-CT dt. 09.10.2019
277 Substituted vide Notf no. 16/2019-CT dt. 29.03.2019 wef 01.04.2019 for
278 Inserted vide Notf no. 60/2018 – CT dt. 30.10.2018
Author Bio
Appreciate the excellent work