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THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
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ARRANGEMENT OF SECTIONS
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CHAPTER I
PRELIMINARY
SECTIONS
- Short title, extent and commencement.
- Definitions.
CHAPTER II
ADMINISTRATION
- Officers under this Act.
- Appointment of officers.
- Powers of officers_._
- Authorisation of officers of State tax or Union territory tax as proper officer in certain
circumstances.
CHAPTER III
LEVY AND COLLECTION OF TAX
- Scope of supply.
- Tax liability on composite and mixed supplies.
- Levy and collection.
- Composition levy.
- Power to grant exemption from tax.
CHAPTER IV
TIME AND VALUE OF SUPPLY
- Time of supply of goods.
- Time of supply of services.
- Change in rate of tax in respect of supply of goods or services.
- Value of taxable supply.
CHAPTER V
INPUT TAX CREDIT
- Eligibility and conditions for taking input tax credit.
- Apportionment of credit and blocked credits.
- Availability of credit in special circumstances.
- Taking input tax credit in respect of inputs and capital goods sent for job work.
- Manner of distribution of credit by Input Service Distributor.
SECTIONS
- Manner of recovery of credit distributed in excess.
CHAPTER VI
REGISTRATION
- Persons liable for registration.
- Persons not liable for registration.
- Compulsory registration in certain cases.
- Procedure for registration.
- Deemed registration.
- Special provisions relating to casual taxable person and non-resident taxable person.
- Amendment of registration.
- Cancellation or suspension of registration.
- Revocation of cancellation of registration.
CHAPTER VII
TAX INVOICE, CREDIT AND DEBIT NOTES
- Tax invoice.
- Prohibition of unauthorised collection of tax.
- Amount of tax to be indicated in tax invoice and other documents.
- Credit and debit notes.
CHAPTER VIII
ACCOUNTS AND RECORDS
- Accounts and other records.
- Period of retention of accounts.
CHAPTER IX
RETURNS
- Furnishing details of outward supplies.
- Furnishing details of inward supplies.
- Furnishing of returns.
- First return.
- Claim of input tax credit and provisional acceptance thereof.
- Matching, reversal and reclaim of input tax credit.
- Matching, reversal and reclaim of reduction in output tax liability.
- Annual return.
- Final return.
- Notice to return defaulters.
- Levy of late fee.
- Goods and services tax practitioners.
CHAPTER XV
DEMANDS AND RECOVERY
SECTIONS
- 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 wilful-misstatement or suppression of
facts.
- 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.
- General provisions relating to determination of tax.
- Tax collected but not paid to Government.
- Tax wrongfully collected and paid to Central Government or State Government.
- Initiation of recovery proceedings.
- Recovery of tax.
- Payment of tax and other amount in instalments.
- Transfer of property to be void in certain cases.
- Tax to be first charge on property.
- Provisional attachment to protect revenue in certain cases.
- Continuation and validation of certain recovery proceedings. CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
- Liability in case of transfer of business.
- Liability of agent and principal.
- Liability in case of amalgamation or merger of companies.
- Liability in case of company in liquidation.
- Liability of directors of private company.
- Liability of partners of firm to pay tax.
- Liability of guardians, trustees, etc.
- Liability of Court of Wards, etc.
- Special provisions regarding liability to pay tax, interest or penalty in certain cases.
- Liability in other cases.
CHAPTER XVII
ADVANCE RULING
- Definitions.
- Authority for advance ruling.
- Application for advance ruling.
- Procedure on receipt of application.
- Appellate Authority for Advance Ruling.
SECTIONS
- Appeal to Appellate Authority.
- Orders of Appellate Authority.
- Rectification of advance ruling.
- Applicability of advance ruling.
- Advance ruling to be void in certain circumstances.
- Powers of Authority and Appellate Authority.
- Procedure of Authority and Appellate Authority.
CHAPTER XVIII
APPEALS AND REVISION
- Appeals to Appellate Authority.
- Powers of Revisional Authority.
- Constitution of Appellate Tribunal and Benches thereof.
- President and Members of Appellate Tribunal, their qualification, appointment, conditions of
service, etc.
- Procedure before Appellate Tribunal.
- Appeals to Appellate Tribunal.
- Orders of Appellate Tribunal.
- Financial and administrative powers of President.
- Interest on refund of amount paid for admission of appeal.
- Appearance by authorised representative.
- Appeal to High Court.
- Appeal to Supreme Court.
- Sums due to be paid notwithstanding appeal, etc.
- Appeal not to be filed in certain cases.
- Non-appealable decisions and orders.
CHAPTER XIX
OFFENCES AND PENALITIS
- Penalty for certain offences.
- Penalty for failure to furnish information return.
- Fine for failure to furnish statistics.
- General penalty.
- General disciplines related to penalty.
- Power to impose penalty in certain cases.
- Power to waive penalty or fee or both.
- Detention, seizure and release of goods and conveyances in transit.
SECTIONS
- Assessment proceedings, etc., not to be invalid on certain grounds.
- Rectification of errors apparent on the face of record.
- Bar on jurisdiction of civil courts.
- Levy of fee.
- Power of Government to make rules.
- Power to make regulations.
- Laying of rules, regulations and notifications.
- Delegation of powers.
- Power to issue instructions or directions.
- Service of notice in certain circumstances.
- Rounding off of tax, etc.
- Anti-profiteering measure.
- Removal of difficulties.
- Amendment of Act 32 of 1994.
- Repeal and saving.
SCHEDULE I.
SCHEDULE II.
SCHEDULE III.
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
ACT NO. 12 OF 2017
[12 th April, 2017.]
An Act to make a provision for levy and collection of tax on intra-State supply of goods or
services or both by the Central Government and for matters connected therewith or incidental
thereto.
BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY
1. Short title, extent and commencement.— ( 1 ) This Act may be called the Central Goods and Services Tax Act, 2017.
( 2 ) It extends to the whole of India 1 ***. ( 3 ) It shall come into force on such date^2 as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
2. Definitions.— In this Act, unless the context otherwise requires,–– ( 1 ) ―actionable claim‖ shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882); ( 2 ) ―address of delivery‖ means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both; ( 3 ) ―address on record‖ means the address of the recipient as available in the records of the supplier; ( 4 ) ―adjudicating authority‖ means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the 3 [Central Board of Indirect Taxes and Customs], the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, 4 [the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171]; ( 5 ) ―agent‖ means a person, including a factor, broker, commission agent, arhatia , del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another; ( 6 ) ―aggregate turnover‖ means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
The words ―except the State of Jammu and Kashmir‖ omitted by Act 26 of 2017, s. 2 (w.e.f. 8-7-2017).
22nd, June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164, vide notification No. G.S.R. 605 (E) dated the 19 June, 2017, see Gazette of India, Extraordinary, Part II, sec. 3( i ). 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 except the proviso to sub-section (9) of section 42, 43 except the proviso to sub-section (9) of section 43, 44 to 50, 53 to 138, 140 to 145, 147 to 163, 165 to 174 vide notification No. G.S.R. 658 (E) dated the 28th June, 2017, see Gazette of India, Extraordinary, Part II, sec. 3( i ).
Subs. by Act 31 of 2018, s. 2, for Central Board of Excise and Customs‖ (w.e.f. 1-2-2019).
Subs. by s. 2, ibid , for ―the Appellate Authority and the Appellate Tribunal‖ (w.e.f. 1-2-2019).
( i ) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; (^1) * * * * *
( 19 ) ―capital goods‖ means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
( 20 ) ―casual taxable person‖ means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business;
( 21 ) ―central tax‖ means the central goods and services tax levied under section 9; ( 22 ) ―cess‖ shall have the same meaning as assigned to it in the Goods and Services Tax (Compensation to States) Act; ( 23 ) ―chartered accountant‖ means a chartered accountant as defined in clause ( b ) of sub-section ( 1 ) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949); ( 24 ) ―Commissioner‖ means the Commissioner of central tax and includes the Principal Commissioner of central tax appointed under section 3 and the Commissioner of integrated tax appointed under the Integrated Goods and Services Tax Act; ( 25 ) ―Commissioner in the Board‖ means the Commissioner referred to in section 168; ( 26 ) ―common portal‖ means the common goods and services tax electronic portal referred to in section 146; ( 27 ) ―common working days‖ in respect of a State or Union territory shall mean such days in succession which are not declared as gazetted holidays by the Central Government or the concerned State or Union territory Government; ( 28 ) ―company secretary‖ means a company secretary as defined in clause ( c ) of sub-section ( 1 ) of section 2 of the Company Secretaries Act, 1980 (56 of 1980); ( 29 ) ―competent authority‖ means such authority as may be notified by the Government; ( 30 ) ―composite supply‖ means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration .— Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply; ( 31 ) ―consideration‖ in relation to the supply of goods or services or both includes–– ( a ) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; ( b ) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government:
- Clause (18) omitted by s. 2, ibid (w.e.f. 1-2-2019).
Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply; ( 32 ) ―continuous supply of goods‖ means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify; ( 33 ) ―continuous supply of services‖ means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify; ( 34 ) ―conveyance‖ includes a vessel, an aircraft and a vehicle; ( 35 ) ―cost accountant‖ means a cost accountant as defined in 1 [clause ( b )] of sub-section ( 1 ) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959); ( 36 ) ―Council‖ means the Goods and Services Tax Council established under article 279A of the Constitution; ( 37 ) ―credit note‖ means a document issued by a registered person under sub-section ( 1 ) of section 34; ( 38 ) ―debit note‖ means a document issued by a registered person under sub-section ( 3 ) of section 34; ( 39 ) ―deemed exports‖ means such supplies of goods as may be notified under section 147; ( 40 ) ―designated authority‖ means such authority as may be notified by the Board; ( 41 ) ―document‖ includes written or printed record of any sort and electronic record as defined in clause ( t ) of section 2 of the Information Technology Act, 2000 (21 of 2000); ( 42 ) ―drawback‖ in relation to any goods manufactured in India and exported, means the rebate of duty, tax or cess chargeable on any imported inputs or on any domestic inputs or input services used in the manufacture of such goods; ( 43 ) ―electronic cash ledger‖ means the electronic cash ledger referred to in sub-section ( 1 ) of section 49; ( 44 ) ―electronic commerce‖ means the supply of goods or services or both, including digital products over digital or electronic network; ( 45 ) ―electronic commerce operator‖ means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce; ( 46 ) ―electronic credit ledger‖ means the electronic credit ledger referred to in sub-section ( 2 ) of section 49; ( 47 ) ―exempt supply‖ means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; ( 48 ) ―existing law‖ means any law, notification, order, rule or regulation relating to levy and collection of duty or tax on goods or services or both passed or made before the commencement of this Act by Parliament or any Authority or person having the power to make such law, notification, order, rule or regulation;
- Subs. by Act 31 of 2018 by s. 2, for ―clause ( c )‖, (w.e.f. 1-2-2019).
but does not include the tax paid under the composition levy; ( 63 ) ―input tax credit‖ means the credit of input tax; ( 64 ) ―intra-State supply of goods‖ shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act; ( 65 ) ―intra-State supply of services‖ shall have the same meaning as assigned to it in section 8 of the Integrated Goods and Services Tax Act; ( 66 ) ―invoice‖ or ―tax invoice‖ means the tax invoice referred to in section 31; ( 67 ) ―inward supply‖ in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration; ( 68 ) ―job work‖ means any treatment or process undertaken by a person on goods belonging to another registered person and the expression ―job worker‖ shall be construed accordingly; ( 69 ) ―local authority‖ means–– ( a ) a ―Panchayat‖ as defined in clause (d) of article 243 of the Constitution; ( b ) a ―Municipality‖ as defined in clause (e) of article 243P of the Constitution; ( c ) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; ( d ) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006); ( e ) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; ( f ) a Development Board constituted under article 371 1 [and article 371J] of the Constitution; or ( g ) a Regional Council constituted under article 371A of the Constitution; ( 70 ) ―location of the recipient of services‖ means,— ( a ) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business; ( b ) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; ( c ) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and ( d ) in absence of such places, the location of the usual place of residence of the recipient; ( 71 ) ―location of the supplier of services‖ means,— ( a ) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; ( b ) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; ( c ) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and
- Ins. by Act 31 of 2018, s. 2 (w.e.f. 1-2-2019).
( d ) in absence of such places, the location of the usual place of residence of the supplier; ( 72 ) ―manufacture‖ means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term ―manufacturer‖ shall be construed accordingly;
( 73 ) ―market value‖ shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related;
( 74 ) ―mixed supply‖ means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply.
Illustration.— A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;
( 75 ) ―money‖ means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognised by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value;
( 76 ) ―motor vehicle‖ shall have the same meaning as assigned to it in clause ( 28 ) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
( 77 ) ―non-resident taxable person‖ means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India;
( 78 ) ―non-taxable supply‖ means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act;
( 79 ) ―non-taxable territory‖ means the territory which is outside the taxable territory; ( 80 ) ―notification‖ means a notification published in the Official Gazette and the expressions ―notify‖ and ―notified‖ shall be construed accordingly;
( 81 ) ―other territory‖ includes territories other than those comprising in a State and those referred to in sub-clauses ( a ) to ( e ) of clause ( 114 ) ;
( 82 ) ―output tax‖ in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis;
( 83 ) ―outward supply‖ in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business;
( 84 ) ―person‖ includes— ( a ) an individual; ( b ) a Hindu Undivided Family; ( c ) a company; ( d ) a firm; ( e ) a Limited Liability Partnership; ( f ) an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
( 94 ) ―registered person‖ means a person who is registered under section 25 but does not include a person having a Unique Identity Number;
( 95 ) ―regulations‖ means the regulations made by the Board under this Act on the recommendations of the Council;
( 96 ) ―removal‖ in relation to goods, means—
( a ) despatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier; or
( b ) collection of the goods by the recipient thereof or by any other person acting on behalf of such recipient;
( 97 ) ―return‖ means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder;
( 98 ) ―reverse charge‖ means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section ( 3 ) or sub-section ( 4 ) of section 9, or under sub-section ( 3 ) or sub-section ( 4 ) of section 5 of the Integrated Goods and Services Tax Act;
( 99 ) ―Revisional Authority‖ means an authority appointed or authorised for revision of decision or orders as referred to in section 108; ( 100 ) ―Schedule‖ means a Schedule appended to this Act;
( 101 ) ―securities‖ shall have the same meaning as assigned to it in clause ( h ) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
( 102 ) ―services‖ means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; (^1) [ Explanation .––For the removal of doubts, it is hereby clarified that the expression ―services‖ includes facilitating or arranging transactions in securities;] ( 103 ) ―State‖ includes a Union territory with Legislature;
( 104 ) ―State tax‖ means the tax levied under any State Goods and Services Tax Act;
( 105 ) ―supplier‖ in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; ( 106 ) ―tax period‖ means the period for which the return is required to be furnished;
( 107 ) ―taxable person‖ means a person who is registered or liable to be registered under section 22 or section 24;
( 108 ) ―taxable supply‖ means a supply of goods or services or both which is leviable to tax under this Act;
( 109 ) ―taxable territory‖ means the territory to which the provisions of this Act apply;
( 110 ) ―telecommunication service‖ means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means;
- The explanation ins. by Act 31 of 2018, s. 2 (w.e.f. 1-2-2019).
( 111 ) ―the State Goods and Services Tax Act‖ means the respective State Goods and Services Tax Act, 2017;
( 112 ) ―turnover in State‖ or ―turnover in Union territory‖ means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess;
( 113 ) ―usual place of residence‖ means–– ( a ) in case of an individual, the place where he ordinarily resides; ( b ) in other cases, the place where the person is incorporated or otherwise legally constituted; ( 114 ) ―Union territory‖ means the territory of— ( a ) the Andaman and Nicobar Islands; ( b ) Lakshadweep; ( c ) Dadra and Nagar Haveli; ( d ) Daman and Diu; ( e ) Chandigarh; and ( f ) other territory. Explanation .––For the purposes of this Act, each of the territories specified in sub-clauses ( a ) to ( f ) shall be considered to be a separate Union territory;
( 115 ) ―Union territory tax‖ means the Union territory goods and services tax levied under the Union Territory Goods and Services Tax Act;
( 116 ) ―Union Territory Goods and Services Tax Act‖ means the Union Territory Goods and Services Tax Act, 2017 (14 of 2017.);
( 117 ) ―valid return‖ means a return furnished under sub-section ( 1 ) of section 39 on which self- assessed tax has been paid in full;
( 118 ) ―voucher‖ means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument;
( 119 ) ―works contract‖ means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;
( 120 ) words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the same meaning as assigned to them in those Acts;
( 121 ) any reference in this Act to a law which is not in force in the State of Jammu and Kashmir, shall, in relation to that State be construed as a reference to the corresponding law, if any, in force in that State.
( 3 ) Any proceedings for rectification, appeal and revision, wherever applicable, of any order passed by an officer appointed under this Act shall not lie before an officer appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act.
CHAPTER III
LEVY AND COLLECTION OF TAX
7. Scope of supply.–– ( 1 ) For the purposes of this Act, the expression ―supply‖ includes––
( a ) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
( b ) import of services for a consideration whether or not in the course or furtherance of business; (^1) [and]
( c ) the activities specified in Schedule I, made or agreed to be made without a consideration. 2 *** (^3) * * * * * (^4) [( 1A ) where certain activities or transactions constitute a supply in accordance with the provisions of
sub-section ( 1 ), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.]
( 2 ) Notwithstanding anything contained in sub-section ( 1 ),–– ( a ) activities or transactions specified in Schedule III; or ( b ) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council,
shall be treated neither as a supply of goods nor a supply of services.
( 3 ) Subject to the provisions of 5 [sub-sections ( 1 ), ( 1A ) and ( 2 )], the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as—
( a ) a supply of goods and not as a supply of services; or ( b ) a supply of services and not as a supply of goods.
8. Tax liability on composite and mixed supplies.–– The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:—
( a ) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and ( b ) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.
9. Levy and collection.–– ( 1 ) Subject to the provisions of sub-section ( 2 ), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.
Ins. by Act 31 of 2018, s. 3, (w.e.f. 1-7-2017).
The word ―and‖ omitted by s. 3, ibid ., (w.e.f. 1-7-2017).
Omitted by s. 3, ibid. , (w.e.f. 1-7-2017).
Ins. by s. 3, ibid .,(w.e.f. 1-7-2017).
Subs. by s. 3, ibid ., for ―sub-sections ( 1 ) and ( 2 )‖ (w.e.f. 1-7-2017).
( 2 ) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.
( 3 ) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (^1) [( 4 ) The Government may, on the recommendations of the Council, by notification, specify a class of
registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.]
( 5 ) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:
Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:
Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.
10. Composition levy.–– ( 1 ) Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections ( 3 ) and ( 4 ) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, 2 [in lieu of the tax payable by him under sub-section ( 1 ) of section 9, an amount of tax calculated at such rate] as may be prescribed, but not exceeding,––
( a ) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer, ( b ) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause ( b ) of paragraph 6 of Schedule II, and ( c ) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers,
subject to such conditions and restrictions as may be prescribed:
Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding 3 [one crore and fifty lakh rupees], as may be recommended by the Council. (^4) [Provided further that a person who opts to pay tax under clause ( a ) or clause ( b ) or clause ( c ) may
supply services (other than those referred to in clause ( b ) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher.]
( 2 ) The registered person shall be eligible to opt under sub-section ( 1 ), if:— (^5) [( a ) save as provided in sub-section ( 1 ), he is not engaged in the supply of services;]
( b ) he is not engaged in making any supply of goods which are not leviable to tax under this Act;
Subs. by Act 31 of 2018, s. 4 (w.e.f. 1-2-2019).
Subs. by s. 5, ibid ., for ―in lieu of the tax payable by him, an amount calculated at such rate‖ (w.e.f. 1-2-2019).
Subs. by s. 5, ibid ., for ―one crore rupees‖ (w.e.f. 1-2-2019).
The proviso ins. by s. 5, ibid ., (w.e.f. 1-2-2019).
Subs. by s. 5, ibid ., (w.e.f. 1-2-2019).
