INISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 12th April, 2017/Chaitra 22, 1939 (Saka) The following Act of 
Parliament received the assent of the President on the 12th April, 2017, and is hereby 
published for general information:—
THE CENTRAL GOODSAND SERVICES TAXACT, 2017 NO. 12 OF 2017
[12th April, 2017.]
AnAct 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
incidentalthereto.
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 TaxAct, 2017.
(2) It extends to the whole of India [*****.]
1
(3) It shall come into force on such date 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
 
1 Omitted ―except the State of Jammu and Kashmir‖ by The Central Goods and Services Tax (Extension to 
Jammu and Kashmir) Act, 2017 (No. 26 of 2017) – Brought into force w.e.f. 8th July, 2017.
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;
(2) ―address of delivery‖ means the address of the recipient of goods or services 
or both indicated on the tax invoice issued by a registered person for delivery of such 
goods or services or both;
(3) ―address on record‖ means the address of the recipient as available in the 
records of the supplier;
(4) ―adjudicating authority‖ means any authority, appointed or authorised to
pass any order or decision under this Act, but does not include the [Central Board of 
Indirect Taxes and Customs]2
, the Revisional Authority, the Authority for Advance Ruling,
the Appellate Authority for Advance Ruling, [the Appellate Authority, the Appellate 
Tribunal and the Authority referred to in sub-section (2) of section 171]3
;
(5) ―agent‖ means a person, including a factor, broker, commission agent, arhatia, 
del credere agent, an auctioneer or any other mercantile agent, by whatever name called,
who carries on the business of supply or receipt of goods or services or both on behalf of
another;
(6) ―aggregate turnover‖ means the aggregate value of all taxable supplies 
(excluding the value of inward supplies on which tax is payable by a person on reverse 
charge basis), exempt supplies, exports of goods or services or both and inter-State supplies
of persons having the same Permanent Account Number, to be computed on all India basis
but excludes central tax, State tax, Union territory tax, integrated tax and cess;
(7) ―agriculturist‖ means an individual or a Hindu Undivided Family who 
undertakes cultivation of land—
 
2 Substituted for ―Central Board of Excise and Customs‖ by The Central Goods and Services Tax 
(Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019. 
3 Substituted for ―the Appellate Authority and the Appellate Tribunal‖ by The Central Goods and Services 
Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019. 

(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired labour under 
personal supervision or the personal supervision of any member of the family;
(8) ―Appellate Authority‖ means an authority appointed or authorised to hear 
appeals as referred to in section 107;
(9) ―Appellate Tribunal‖ means the Goods and Services TaxAppellate Tribunal 
constituted under section 109;
(10) ―appointed day‖ means the date on which the provisions of this Act shall 
come into force;
(11) ―assessment‖ means determination of tax liability under this Act and includes 
self-assessment, re-assessment, provisional assessment, summary assessment and best 
judgment assessment;
(12) ―associated enterprises‖ shall have the same meaning as assigned to it in 
section 92A of the Income-tax Act, 1961;
(13) ―audit‖ means the examination of records, returns and other documents 
maintained or furnished by the registered person under this Act or the rules made 
thereunder or under any other law for the time being in force to verify the correctness of 
turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess 
his compliance with the provisions of this Act or the rules made thereunder;
(14) ―authorised bank‖ shall mean a bank or a branch of a bank authorised by 
the Government to collect the tax or any other amount payable under thisAct;
(15) ―authorised representative‖ means the representative as referred to in 
section 116;
(16) ―Board‖ means the [Central Board of Indirect Taxes and Customs]4
constituted under the Central Boards of Revenue Act, 1963;
 
4 Substituted for ―Central Board of Excise and Customs‖ by The Finance Act, 2018 (No. 13 of 2018) –
Brought into force w.e.f. 29th March, 2018. 
 

(17) ―business‖ includes ––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager
or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to 
sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not 
there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in 
connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a 
subscription or any other consideration) of the facilities or benefitsto its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been 
accepted by him in the course orfurtherance of histrade, profession or vocation;
(h) [activities of a race club including by way of totalisator or a license to book 
maker or activities of a licensed book maker in such club; and]5
(i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public authorities;
(18) [*****];6
 
5 Substituted for ―(h) services provided by a race club by way of totalisator or a licence to book maker in 
such club; and.‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –
Brought into force w.e.f. 01st February, 2019. 
6 Omitted ―(18) ―business vertical‖ means a distinguishable component of an enterprise that is engaged in 
the supply of individual goods or services or a group of related goods or services which is subject to risks
and returns that are different from those of the other business verticals.
Explanation.––For the purposes of this clause, factors that should be considered in determining 
whether goods or services are related include––
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of regulatory environment (wherever applicable), including banking, insurance, 
 

(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;
(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;
 
or public utilities;‖
by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force 
w.e.f. 01st February, 2019.
(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;
(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:
Provided that a deposit given in respect of the supply of goods or services or both 
shall not be considered as payment made for such supply unless the supplier applies such 
deposit as consideration for the said supply;
(32) ―continuous supply of goods‖ means a supply of goods which is 
provided, or agreed to be provided, continuously or on recurrent basis, under a contract, 
whether or not by means of a wire, cable, pipeline or other conduit, and for which the 
supplier invoices the recipient on a regular or periodic basis and includes supply of such 
goods as the Government may, subject to such conditions, as it may, by notification,
specify;
(33) ―continuous supply of services‖ means a supply of services which is 
provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for 
a period exceeding three months with periodic payment obligations and includes supply
of such services as the Government may, subject to such conditions, as it may, by 
notification, specify;
(34) ―conveyance‖ includes a vessel, an aircraft and a vehicle;
(35) ―cost accountant‖ means a cost accountant as defined in [clause (b)]7
of 
sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959;
(36) ―Council‖ means the Goods and Services Tax Council established under 
article 279A of theConstitution;
(37) ―credit note‖ means a document issued by a registered person under subsection (1) of section 34;
(38) ―debit note‖ means a document issued by a registered person under subsection (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;
(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;
 
7 Substituted for ―clause (c)‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) –Brought into force w.e.f. 01st February, 2019. 
(43) ―electronic cash ledger‖ means the electronic cash ledger referred to in subsection (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 nontaxable supply;
(48) ―existing law‖ means any law, notification, order, rule or regulation relating 
to levy and collection of duty or tax on goods or services or both passed or made before
the commencement of this Act by Parliament or any Authority or person having the power
to make such law, notification, order, rule or regulation;
(49) ―family‖ means,––
(i) the spouse and children of the person, and
(ii) the parents, grand-parents, brothers and sisters of the person if they are 
wholly or mainly dependent on the said person;
(50) ―fixed establishment‖ means a place (other than the registered place of 
business) which is characterised by a sufficient degree of permanence and suitable 
structure in terms of human and technical resources to supply services, or to receive and 
use services for its own needs;
(51) ―Fund‖ means the Consumer Welfare Fund established under section 57;
(52) ―goods‖ means every kind of movable property other than money and 
securities but includes actionable claim, growing crops, grass and things attached to or 
forming part of the land which are agreed to be severed before supply or under a contract 
of supply;
(53) ―Government‖ means the Central Government;
(54) ―Goods and Services Tax (Compensation to States) Act‖ means the Goods 
and Services Tax (Compensation to States) Act, 2017;
(55) ―goods and services tax practitioner‖ means any person who has been 
approved under section 48 to act as such practitioner;
(56) ―India‖ means the territory of India as referred to in article 1 of the 
Constitution, its territorial waters, seabed and sub-soil underlying such waters, 
continental shelf, exclusive economic zone or any other maritime zone as referred to in the
TerritorialWaters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones
Act, 1976, and the air space above its territory and territorial waters;
(57) ―Integrated Goods and Services Tax Act‖ means the Integrated Goods and 
Services TaxAct, 2017;
(58) ―integrated tax‖ means the integrated goods and services tax levied under 
the Integrated Goods and Services Tax Act;
(59) ―input‖ means any goods other than capital goods used or intended to be 
used by a supplier in the course or furtherance of business;
(60) ―input service‖ means any service used or intended to be used by a supplier 
in the course or furtherance of business;
(61) ―Input Service Distributor‖ means an office of the supplier of goods or 
services or both which receives tax invoices issued under section 31 towards the receipt of 
input services and issues a prescribed document for the purposes of distributing the credit
of central tax, State tax, integrated tax or Union territory tax paid on the said services to a
supplier of taxable goods or services or both having the same Permanent Account Number 
as that of the said office;
(62) ―input tax‖ in relation to a registered person, meansthe central tax, State tax, 
integrated tax or Union territory tax charged on any supply of goods or services or both 
made to him and includes—
(a) the integrated goods and services tax charged on import of goods;
(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;
(c) the tax payable under the provisions of sub-sections (3) and (4) of section 5
of the Integrated Goods and Services Tax Act;
(d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 
of the respective State Goods and Services Tax Act; or
(e) the tax payable under the provisions of sub-sections (3) and (4) of section 7
of the Union Territory Goods and Services Tax Act,
but does not include the tax paid under the composition levy;
(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 TaxAct;
(65) ―intra-State supply of services‖ shall have the same meaning as assigned to it 
in section 8 of the Integrated Goods and Services TaxAct;
(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;
(e) a Regional Council or a District Council constituted under the Sixth 
Schedule to the Constitution;
(f) a Development Board constituted under article 371[and article 371J]8
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 isreceived 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
 
8
Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into 
force w.e.f. 01st February, 2019.
of business or fixed establishment, the location of the establishment most directly 
concerned with the provisions of the supply; and
(d) in absence of such places, the location of the usual place of residence of the
supplier;
(72) ―manufacture‖ means processing of raw material or inputs in any manner 
that results in emergence of a new product having a distinct name, character and use and 
the term ―manufacturer‖ shall be construed accordingly;
(73) ―market value‖ shall mean the full amount which a recipient of a supply is 
required to pay in order to obtain the goods or services or both of like kind and quality at or
about the same time and at the same commercial level where the recipient and the supplier 
are not related;
(74) ―mixed supply‖ means two or more individual supplies of goods or services, 
or any combination thereof, made in conjunction with each other by a taxable person for a 
single price where such supply does not constitute a composite supply.
Illustration.— A supply 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 ofIndia 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;
(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 TaxAct;
(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;
(g) any corporation established by or under any Central Act, State Act or 
Provincial Act or a Government company as defined in clause (45) of section 2 of the
Companies Act, 2013;
(h) any body corporate incorporated by or under the laws of a country outside
India;
(i) a co-operative society registered under any law relating to co-operative 
societies;
(j) a local authority;
(k) Central Government or a State Government;
(l) society as defined under the Societies Registration Act, 1860;
(m) trust; and
(n) every artificial juridical person, not falling within any of the above;
(85) ―place of business‖ includes––
(a) a place from where the business is ordinarily carried on, and includes a 
warehouse, a godown or any other place where a taxable person stores his goods,
supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by 
whatever name called;
(86) ―place of supply‖ means the place of supply as referred to in Chapter V of 
the Integrated Goods and Services Tax Act;
(87) ―prescribed‖ means prescribed by rules made under this Act on the 
recommendations of the Council;
(88) ―principal‖ means a person on whose behalf an agent carries on the business 
of supply or receipt of goods or services or both;
(89) ―principal place of business‖ means the place of business specified as the 
principal place of business in the certificate of registration;
(90) ―principal supply‖ means the supply of goods or services which constitutes 
the predominant element of a composite supply and to which any othersupply forming part 
of that composite supply is ancillary;
(91) ―proper officer‖ in relation to any function to be performed under this Act, 
means the Commissioner or the officer of the central tax who is assigned that function by 
the Commissioner in theBoard;
(92) ―quarter‖ shall mean a period comprising three consecutive calendar months, 
ending on the last day of March, June, September and December of a calendar year;
(93) ―recipient‖ of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or services or both, 
the person who is liable to pay that consideration;
(b) where no consideration is payable for the supply of goods, the person to 
whom the goods are delivered or made available, or to whom possession or use of the 
goods is given or made available; and
(c) where no consideration is payable for the supply of a service, the person to 
whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a 
reference to the recipient of the supply and shall include an agent acting as such on behalf 
of the recipient in relation to the goods or services or both supplied;
(94) ―registered person‖ means a person who is registered under section 25 but 
does not include a person having a Unique Identity Number;
(95) ―regulations‖ means the regulations made by the Board under this Act on 
the recommendations of the Council;
(96) ―removal‘‘ in relation to goods, means—
(a) despatch of the goods for delivery by the supplier thereof or by any other 
person acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any other person acting 
on behalf of such recipient;
(97) ―return‖ means any return prescribed or otherwise required to be furnished 
by or under this Act or the rules made thereunder;
(98) ―reverse charge‖ means the liability to pay tax by the recipient of supply of
goods or services or both instead of the supplier of such goods or services or both under
sub-section (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 TaxAct;
(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;
(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;
[Explanation.–– For the removal of doubts, it is hereby clarified that the 
expression ―services‖ includes facilitating or arranging transactions in securities;]9
(103) ―State‖ includes a Union territory withLegislature;
(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‖ meansthe period for which the return isrequired 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 
 
9
Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019.
leviable to tax under thisAct;
(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;
(111) ―the State Goods and Services Tax Act‖ means the respective State Goods 
and Services TaxAct, 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 interState 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 NagarHaveli and Daman and Diu;]10
(d) [Ladakh;]11
 
10
 Substituted for ―(c) Dadra and Nagar Haveli; (d) Daman and Diu;‖ by The Finance Act, 2020 (No. 12 of 
2020)–Brought into force w.e.f 30.06.2020.
(e) Chandigarh; and
(f) Other territory‖.
Explanation.––For the purposes of this Act, each of the territories specified in subclauses (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 TaxAct, 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.
 
11 Substituted for ―(c) Dadra and Nagar Haveli; (d) Daman and Diu;‖ by The Finance Act, 2020 (No. 12 of 
2020) –Brought into force w.e.f 30.06.2020.
 

3. Officers under this Act.— The Government shall, by notification, appoint
the following classes of officersfor the purposes of this Act, namely:––
(a) Principal Chief Commissioners of Central Tax or Principal Directors General
of CentralTax,
(b) Chief Commissioners of CentralTax or Directors General of CentralTax,
(c) Principal Commissioners of Central Tax or Principal Additional Directors 
General of CentralTax,
(d) Commissioners of Central Tax or Additional Directors General of Central
Tax,
(e) Additional Commissioners of Central Tax or Additional Directors of 
CentralTax,
(f) Joint Commissioners of CentralTax or Joint Directors of Central Tax,
(g) Deputy Commissioners of Central Tax or Deputy Directors of Central Tax,
(h) Assistant Commissioners of Central Tax or Assistant Directors of 
Central Tax,and
(i) any other class of officers as it may deem fit:
Provided that the officers appointed under the Central Excise Act, 1944 shall be
deemed to be the officers appointed under the provisions of this Act.

4. Appointment of Officers.— (1) The Board may, in addition to the officers
as may be notified by the Government under section 3, appoint such persons as it may 
think fit to be the officers under this Act.
(2) Without prejudice to the provisions of sub-section (1), the Board may, by 
order, authorise any officer referred to in clauses (a) to (h) of section 3 to appoint officers of 
central tax below the rank of Assistant Commissioner of central tax for the administration
of this Act.
 

5. Powers of officers under GST.— (1) Subject to such conditions and
limitations as the Board may impose, an officer of central tax may exercise the powers and 
discharge the duties conferred or imposed onhim under this Act.
(2) An officer of central tax may exercise the powers and discharge the duties
conferred or imposed under this Act on any other officer of central tax who is subordinate
to him.
(3) The Commissioner may, subject to such conditions and limitations as may 
be specified in this behalf by him, delegate his powers to any other officer who is
subordinate to him.
(4) Notwithstanding anything contained in this section, an Appellate 
Authority shall not exercise the powers and discharge the duties conferred or imposed on
any other officer of centraltax.

6. Authorisation of officers of State tax or Union territory tax as proper 
officer in certain circumstances.— (1) Without prejudice to the provisions of this Act, 
the officers appointed under the State Goods and Services Tax Act or the Union Territory 
Goods and Services Tax Act are authorised to be the proper officers for the purposes of 
this Act, subject to such conditions as the Government shall, on the recommendations of
the Council, by notification, specify.
(2) Subject to the conditions specified in the notification issued under 
sub-section (1),––
(a) where any proper officer issues an order under this Act, he shall also issue an 
order under the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act, as authorised by the State Goods and Services Tax Act or the Union 
Territory Goods and Services Tax Act, as the case may be, under intimation to the 
jurisdictional officer of State tax or Union territory tax;
(b) where a proper officer under the State Goods and Services Tax Act or the 
Union Territory Goods and Services Tax Act has initiated any proceedings on a subject 
matter, no proceedings shall be initiated by the proper officer under this Act on the same 
subject matter.
 

(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 

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;[and]12
(c) the activities specified in Schedule I, made or agreed to be made without a 
consideration;[****]13
(d) [*****]14
.
[(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.]15
(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.

12 Inserted w.e.f 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) – Brought into force on 01st February, 2019.
13 Omitted ―and‖ w.e.f 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 
(No. 31 of 2018) – Brought into force on 01st February, 2019.
14 Omitted ―(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule 
II.‖ w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) 
– Brought into force on 01st February, 2019. 
15 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 
of 2018) – Brought into force on 01st February, 2019. 
 

(3) Subject to the provisions of [sub-sections (1), (1A) and (2)]
16
, 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.
(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.
 
16 Substituted for ―sub-sections (1) and (2)‖ w.e.f. 01st July, 2017 by The Central Goods and Services Tax 
(Amendment) Act, 2018 (No. 31 of 2018) – Brought into force on 01st February, 2019. 

(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.]17
(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, [in lieu of the tax payable by him under sub-section (1) 
of section 9, an amount calculated at such rate]18 as may be prescribed, but not
exceeding,––
 
17 Substituted for ―(4) The central tax in respect of the supply of taxable goods or services or both by a 
supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as 
the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for
paying the tax in relation to the supply of such goods or services or both.‖ by The Central Goods and 
Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019. 
18 Substituted for ―ïn lieu of the tax payable by him, an amount calculated at such rate‖, by The Central 
Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st
February, 2019.

(a) one per cent. of the turnover in State or turnover in Union territory in case of 
a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory 
in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of 
Schedule II, and
(c) half per cent. of the turnover in State or turnover in Union territory in case of 
other suppliers,
subject to such conditions and restrictions as may be prescribed:
Provided that the Government may, by notification, increase the said limit of fifty
lakh rupees to such higher amount, not exceeding [one crore and fifty lakh rupees]19
, as
may be recommended by the Council:
[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]20
.
[Explanation.––For the purposes of second proviso, the value of exempt supply of 
services provided by way of extending deposits, loans or advances in so far as the 
consideration is represented by way of interest or discount shall not be taken into account 
for determining the value of turnover in a State or Union territory]21
.
(2) The registered person shall be eligible to opt under sub-section (1),if:—
(a) [save as provided in sub-section (1), he is not engaged in the supply of 
services;]22
 
19 Substituted for ―one crore rupees‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 
31 of 2018) – Brought into force w.e.f. 01st February, 2019. 
20 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
21 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
22 Substituted for ―(a) he is not engaged in the supply of services other than supplies referred to in clause (b) 
of paragraph 6 of Schedule II save as provided in sub-section (1), he is not engaged in the supply of 
services.‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into

(b) he is not engaged in making any supply of goods which are not leviable to tax 
under this Act;
(c) he is not engaged in making any inter-State outward supplies of goods;
(d) he is not engaged in making any supply of goods through an electronic 
commerce operator who is required to collect tax at source under section 52; [****]
23
(e) he is not a manufacturer ofsuch goods as may be notified by the Government 
on the recommendations of the [Council ;and]24
(f) [he is neither a casual taxable person nor a non-resident taxable person:]25
Provided that where more than one registered persons are having the same
Permanent Account Number (issued under the Income-tax Act, 1961), the registered
person shall not be eligible to opt for the scheme under sub-section (1) unless all such
registered persons opt to pay tax under that sub-section.
[(2A) 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, not eligible 
to opt to pay tax under sub-section (1) and sub-section (2), whose aggregate turnover in 
the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of 
the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at 
such rate as may be prescribed, but not exceeding three per cent. of the turnover in State 
or turnover in Union territory, if he is not––
(a) engaged in making any supply of goods or services which are not leviable 
to tax under this Act;
(b) engaged in making any inter-State outward supplies of goods or services;
(c) engaged in making any supply of goods or services through an electronic 
commerce operator who is required to collect tax at source under section 52;
 
force w.e.f. 01st February, 2019. 
23 Omitted ―and‖ by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st
January, 2020.
24 Substituted for ―Council:‖ by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 
01st January, 2020.
25 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020.
 

(d) a manufacturer of such goods or supplier of such services as may be 
notified by the Government on the recommendations of the Council; and
(e) a casual taxable person or a non-resident taxable person:
Provided that where more than one registered person are having the same 
Permanent Account Number issued under the Income-tax Act, 1961, the registered 
person shall not be eligible to opt for the scheme under this sub-section unless all such 
registered persons opt to pay tax under this sub-section.]26
(3) The option availed of by a registered person under sub-section (1) [or subsection (2A), as the case may be,]27 shall lapse with effect from the day on which his 
aggregate turnover during a financial year exceeds the limit specified under sub-section 
(1) [or sub-section (2A), as the case may be.] 28
(4) A taxable person to whom the provisions of sub-section (1) [or, as the case 
may be, sub-section (2A)]29 apply shall not collect any tax from the recipient on supplies
made by him nor shall he be entitled to any credit of input tax.
(5) If the proper officer has reasons to believe that a taxable person has paid tax
under sub-section (1) [or sub-section (2A), as the case may be,]30 despite not being eligible,
such person shall, in addition to any tax that may be payable by him under any other 
provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74
shall, mutatis mutandis, apply for determination of tax and penalty.
[Explanation 1.––For the purposes of computing aggregate turnover of a person for 
determining his eligibility to pay tax under this section, the expression ―aggregate 
turnover‖ shall include the value of supplies made by such person from the 1st day of 
April of a financial year up to the date when he becomes liable for registration under this 
 
26 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
27 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
28 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
29 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
30 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020.

Act, but shall not include the value of exempt supply of services provided by way of 
extending deposits, loans or advances in so far as the consideration is represented by way 
of interest or discount.
Explanation 2.––For the purposes of determining the tax payable by a person under 
this section, the expression ―turnover in State or turnover in Union territory‖ shall not 
include the value of following supplies, namely:––
(i) supplies from the first day of April of a financial year up to the date when 
such person becomes liable for registration under this Act; and
(ii) exempt supply of services provided by way of extending deposits, loans or 
advances in so far as the consideration is represented by way of interest or discount.]31

11. Power to grant Exemption.— (1) Where the Government is satisfied that
it is necessary in the public interest so to do, it may, on the recommendations of the
Council, by notification, exempt generally, either absolutely or subject to such conditions 
as may be specified therein, goods or services or both of any specified description from the
whole or any part of the tax leviable thereon with effect from such date as may be 
specified in such notification.
(2) Where the Government is satisfied that it is necessary in the public interest 
so to do, it may, on the recommendations of the Council, by special order in each case, 
under circumstances of an exceptional nature to be stated in such order, exempt from
payment of tax any goods or services or both on which tax is leviable.
(3) The Government may, if it considers necessary or expedient so to do for 
the purpose of clarifying the scope or applicability of any notification issued under 
sub-section (1) or order issued under sub-section (2), insert an explanation in such 
notification or order, as the case may be, by notification at any time within one year of 
issue of the notification under sub-section (1) or order under sub-section (2), and every 
such explanation shall have effect as if it had always been the part of the first such 
notification or order, as the case may be.
Explanation.––For the purposes of this section, where an exemption in respect of  
any goods or services or both from the whole or part of the tax leviable thereon has been 
granted absolutely, the registered person supplying such goods or services or both shall 
not collect the tax, in excess of the effective rate, on such supply of goods or services or 
both
 
31 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 

12. Time of Supply of Goods.— (1) The liability to pay tax on goods shall arise
at the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of goods shall be the earlier of the following dates,
namely:—
(a) the date of issue of invoice by the supplier or the last date on which he is 
required, under [******]32 section 31, to issue the invoice with respect to the supply; or
(b) the date on which the supplier receives the payment with respect to the 
supply:
Provided that where the supplier of taxable goods receives an amount up to one 
thousand rupees in excess of the amount indicated in the tax invoice, the time of supply
to the extent of such excess amount shall, at the option of the said supplier, be the date of 
issue of invoice in respect of such excess amount.
Explanation 1.––For the purposes of clauses (a) and (b), ―supply‖ shall be deemed
to have been made to the extent it is covered by the invoice or, as the case may be, the
payment.
Explanation 2.––For the purposes of clause (b), ―the date on which the supplier 
receives the payment‖ shall be the date on which the payment is entered in his books of
account or the date on which the payment is credited to his bank account, whichever is
earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on 
reverse charge basis, the time of supply shall be the earliest of the following dates,
namely:—
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the books of account of the recipient or the 
 
32 Omitted ―sub-section (1) of‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) – Brought into force w.e.f. 01st February, 2019.

date on which the payment is debited in his bank account, whichever is earlier; or
(c) the date immediately following thirty daysfrom the date of issue of invoice or 
any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause
(a) or clause (b) or clause (c), the time of supply shall be the date of entry in the books of 
account of the recipient of supply.
(4) In case of supply of vouchers by a supplier, the time of supply shall be—
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the 
provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall–
–
(a) in a case where a periodical return has to be filed, be the date on which such 
return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of
supply by way of interest, late fee or penalty for delayed payment of any consideration shall
be the date on which the supplier receives such addition in value.

13. Time of Supply of Services.— (1) The liability to pay tax on services shall
arise at the time ofsupply, as determined in accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates,
namely:—
(a) the date of issue of invoice by the supplier, if the invoice is issued within the 
period prescribed under [******]33 section 31 or the date of receipt of payment, whichever is
earlier; or
(b) the date of provision of service, if the invoice is not issued within the period 
 
33 Omitted ―sub-section (2) of‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) – Brought into force w.e.f. 01st February, 2019. 

prescribed under [******]34
 section 31 or the date of receipt of payment, whichever is
earlier; or
(c) the date on which the recipient shows the receipt of services in his books of 
account, in a case where the provisions of clause (a) or clause (b) do not apply:
Provided that where the supplier of taxable service receives an amount up to one 
thousand rupees in excess of the amount indicated in the tax invoice, the time of supply
to the extent of such excess amount shall, at the option of the said supplier, be the date of 
issue of invoice relating to such excess amount.
Explanation.––For the purposes of clauses (a) and (b)––
(i) the supply shall be deemed to have been made to the extent it is covered by 
the invoice or, as the case may be, the payment;
(ii) ―the date of receipt of payment‖ shall be the date on which the payment is 
entered in the books of account of the supplier or the date on which the payment is
credited to his bank account, whichever is earlier.
(3) In case of supplies in respect of which tax is paid or liable to be paid on
reverse charge basis, the time of supply shall be the earlier of the following dates,
namely:––
(a) the date of payment as entered in the books of account of the recipient or the 
date on which the payment is debited in his bank account, whichever is earlier; or
(b) the date immediately following sixty days from the date of issue of invoice or 
any other document, by whatever name called, in lieu thereof by the supplier:
Provided that where it is not possible to determine the time of supply under clause 
(a) or clause (b), the time of supply shall be the date of entry in the books of account of 
the recipient of supply:
Provided further that in case of supply by associated enterprises, where the 
supplier of service is located outside India, the time of supply shall be the date of entry in
the books of account of the recipient of supply or the date of payment, whichever is earlier.
 
34 Omitted ―sub-section (2) of‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) – Brought into force w.e.f. 01st February, 2019. 

(4) In case of supply of vouchers by a supplier, the time of supply shall be––
(a) the date of issue of voucher, if the supply is identifiable at that point; or
(b) the date of redemption of voucher, in all other cases.
(5) Where it is not possible to determine the time of supply under the 
provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall–
–
(a) in a case where a periodical return has to be filed, be the date on which such 
return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of
supply by way of interest, late fee or penalty for delayed payment of any consideration shall
be the date on which the supplier receives such addition in value.

14. Change in rate of tax in respect of supply of goods or services.—
Notwithstanding anything contained in section 12 or section 13, the time of supply, where 
there is a change in the rate of tax in respect of goods or services or both, shall be 
determined in the following manner, namely:––
(a) in case the goods or services or both have been supplied before the change 
in rate oftax,––
(i) where the invoice for the same has been issued and the payment is also 
received after the change in rate of tax, the time of supply shall be the date of receipt of
payment or the date of issue of invoice, whichever is earlier; or
(ii) where the invoice has been issued prior to the change in rate of tax but 
payment is received after the change in rate of tax, the time of supply shall be the date of 
issue of invoice; or
(iii) where the payment has been received before the change in rate of tax, but the
invoice for the same is issued after the change in rate of tax, the time of supply shall be the 
date of receipt of payment;
(b) in case the goods or services or both have been supplied after the change in
rate of tax,––
(i) where the payment is received after the change in rate of tax but the 
invoice has been issued prior to the change in rate of tax, the time ofsupply shall be the date 
of receipt of payment; or
(ii) where the invoice has been issued and payment is received before the 
change in rate of tax, the time of supply shall be the date of receipt of payment or date of
issue of invoice, whichever is earlier; or
(iii) where the invoice has been issued after the change in rate of tax but the
payment is received before the change in rate of tax, the time of supply shall be the date of 
issue of invoice:
Provided that the date of receipt of payment shall be the date of credit in the bank 
account if such credit in the bank account is after four working days from the date of
change in the rate of tax.
Explanation.––For the purposes of this section, ―the date of receipt of payment‖ 
shall be the date on which the payment is entered in the books of account of the supplier
or the date on which the payment is credited to his bank account, whichever is earlier.

15. Value of Taxable Supply.— (1) The value of a supply of goods or services 
or both shall be the transaction value, which is the price actually paid or payable for the
said supply of goods or services or both where the supplier and the recipient of the supply 
are not related and the price is the sole consideration for the supply.
(2) The value of supply shall include–––
(a) any taxes, duties, cesses, fees and charges levied under any law for the time 
being in force other than this Act, the State Goods and Services Tax Act, the Union 
Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to 
States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in relation to such supply but 
which has been incurred by the recipient of the supply and not included in the price 
actually paid or payable for the goods or services or both;
(c) incidental expenses, including commission and packing, charged by the 
supplier to the recipient of a supply and any amount charged for anything done by the 
supplier in respect of the supply of goods or services or both at the time of, or before 
delivery of goods or supply of services;
(d) interest or late fee or penalty for delayed payment of any consideration for 
any supply; and
(e) subsidies directly linked to the price excluding subsidies provided by the 
Central Government and State Governments.
Explanation.––For the purposes of this sub-section, the amount of subsidy shall be 
included in the value of supply of the supplier who receives the subsidy.
(3) The value of the supply shall not include any discount which is given––
(a) before or at the time of the supply if such discount has been duly recorded in 
the invoice issued in respect of such supply; and
(b) after the supply has been effected, if—
(i) such discount is established in terms of an agreement entered into at or 
before the time of such supply and specifically linked to relevant invoices; and
(ii) input tax credit as is attributable to the discount on the basis of document 
issued by the supplier has been reversed by the recipient of the supply.
(4) Where the value of the supply of goods or services or both cannot be
determined under sub-section (1), the same shall be determined in such manner as may be
prescribed.
(5) Notwithstanding anything contained in sub-section (1) or sub-section (4), 
the value of such supplies as may be notified by the Government on the recommendations
of the Council shall be determined in such manner as may be prescribed.
Explanation.—For the purposes of this Act,––
(a) persons shall be deemed to be ―related persons‖ if––
(i) such persons are officers or directors of one another‘s businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds twenty-five per 
cent. or more of the outstanding voting stock or shares of both of them;
(v) one of them directly or indirectly controls theother;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family;
(b) the term ―person‖ also includes legal persons;
(c) persons who are associated in the business of one another in that one isthe 
sole agent or sole distributor or sole concessionaire, howsoever described, of the other, 
shall be deemed to be related.
 

16. Eligibility and conditions for taking input tax credit.— (1) Every 
registered person shall, subject to such conditions and restrictions as may be prescribed
and in the manner specified in section 49, be entitled to take credit of input tax charged on
any supply of goods or services or both to him which are used or intended to be used in the
course or furtherance of his business and the said amount shall be credited to the 
electronic credit ledger of such person.
(2) Notwithstanding anything contained in this section, no registered person
shall be entitled to the credit of any input tax in respect of any supply of goods or services
or both to him unless,––
(a) he isin possession of a tax invoice or debit note issued by a supplier registered 
under this Act, or such other tax paying documents as may be prescribed;
(b) he has received the goods or services or both.
[Explanation.— For the purposes of this clause, it shall be deemed that the 
registered person has received the goods or, as the case may be, services––
(i) where the goods are delivered by the supplier to a recipient or any other person 
on the direction of such registered person, whether acting as an agent or otherwise, before 
or during movement of goods, either by way of transfer of documents of title to goods or 
otherwise;
(ii) where the services are provided by the supplier to any person on the direction 
of and on account of such registered person;]35
(c) subject to the provisions of section 41, the tax charged in respect of such 
supply has been actually paid to the Government, either in cash or through utilisation of 
 
35 Substituted for ―Explanation.—For the purposes of this clause, it shall be deemed that the registered
person has received the goods where the goods are delivered by the supplier to a recipient or any other person
on the direction of such registered person, whether acting as an agent or otherwise, before or during
movement of goods, either by way of transfer of documents of title to goods or otherwise;‖ by The Central 
Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st
February, 2019.

input tax credit admissible in respect of the said supply; and
(d) he has furnished the return under section 39:
Provided that where the goods against an invoice are received in lots or 
instalments, the registered person shall be entitled to take credit upon receipt of the last 
lot or instalment:
Provided further that where a recipient fails to pay to the supplier of goods or 
services or both, other than the supplies on which tax is payable on reverse charge basis,
the amount towards the value of supply along with tax payable thereon within a period of 
one hundred and eighty days from the date of issue of invoice by the supplier, an amount
equal to the input tax credit availed by the recipient shall be added to his output tax 
liability, along with interest thereon, in such manner as may be prescribed:
Provided also that the recipient shall be entitled to avail of the credit of input tax on 
payment made by him of the amount towards the value of supply of goods or services or 
both along with tax payable thereon.
(3) Where the registered person has claimed depreciation on the tax component
of the cost of capital goods and plant and machinery under the provisions of the Incometax Act, 1961, the input tax credit on the said tax component shall not be allowed.
(4) A registered person shall not be entitled to take input tax credit in respect 
of any invoice or debit note for supply of goods or services or both after the due date of
furnishing of the return under section 39 for the month of September following the end of
financial year to which such invoice or invoice relating to such debit note pertains or 
furnishing of the relevant annual return, whichever is earlier.
[Provided that the registered person shall be entitled to take input tax credit after 
the due date of furnishing of the return under section 39 for the month of September, 
2018 till the due date of furnishing of the return under the said section for the month of 
March, 2019 in respect of any invoice or invoice relating to such debit note for supply of 
goods or services or both made during the financial year 2017-18, the details of which 
have been uploaded by the supplier under sub-section (1) of section 37 till the due date 
for furnishing the details under sub-section (1) of said section for the month of March,2019.]

17. Apportionment of credit and blocked credits.— (1) Where the goods or 
services or both are used by the registered person partly for the purpose of any business
and partly for other purposes, the amount of credit shall be restricted to so much of the 
input tax as is attributable to the purposes of his business.
(2) Where the goods or services or both are used by the registered person 
partly for effecting taxable suppliesincluding zero-rated supplies under thisAct or underthe
Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the
said Acts, the amount of credit shall be restricted to so much of the input tax as is
attributable to the said taxable supplies including zero-rated supplies.
(3) The value of exempt supply under sub-section (2) shall be such as may be
prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse
charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph
5 of Schedule II, sale of building.
[Explanation.— For the purposes of this sub-section, the expression ‗‗value of 
exempt supply‘‘ shall not include the value of activities or transactions specified in 
Schedule III, except those specified in paragraph 5 of the said Schedule;]37
(4) A banking company or a financial institution including a non-banking 
financial company, engaged in supplying services by way of accepting deposits, extending 
loans or advances shall have the option to either comply with the provisions of subsection (2), or avail of, every month, an amount equal to fifty per cent. of the eligible 
input tax credit on inputs, capital goods and input services in that month and the rest 
shall lapse:
Provided that the option once exercised shall not be withdrawn during the
remaining part of the financialyear:
Provided further that the restriction of fifty per cent. shall not apply to the tax paid
on supplies made by one registered person to another registered person having the same 
 
36 Inserted vide Order No. 02/2018 –Central Tax dated 31.12.2018
37 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
 

Permanent AccountNumber.
(5) Notwithstanding anything contained in sub-section (1) of section 16 and 
sub- section (1) of section 18, input tax credit shall not be available in respect of the 
following, namely:—
(a) [motor vehicles for transportation of persons having approved seating 
capacity of not more than thirteen persons (including the driver), except when they are 
used for making the following taxable supplies, namely:—
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
 (ab) services of general insurance, servicing, repair and maintenance in so far as 
they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):
Provided that the input tax credit in respect of such services shall be available—
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause 
(aa) are used for the purposes specified therein; 
(ii) where received by a taxable person engaged—
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor 
vehicles, vessels or aircraft insured by him;]38
(b) [the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health services, 
cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or 
aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified 
therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall 
be available where an inward supply of such goods or services or both is used by a 
registered person for making an outward taxable supply of the same category of goods or 
services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home 
travel concession:
Provided that the input tax credit in respect of such goods or services or both shall 
be available, where it is obligatory for an employer to provide the same to its employees 
under any law for the time being in force.]39
 
38 Substituted for ―(a) motor vehicles and other conveyances except when they are used–
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods;‖
by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force 
w.e.f. 01st February, 2019. 
39 Substituted for ―(b) the following supply of goods or services or both— (i) food and beverages, outdoor 
catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of 
goods or services or both of a particular category is used by a registered person for making an outward 
taxable supply of the same category of goods or services or both or as an element of a taxable composite or 
mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where––
(A) the Government notifies the services which are obligatory for an employer to provide to 
its employees under any law for the time being in force; or
(B) such inward supply of goods or services or both of a particular category is used by a 
(c) works contract services when supplied for construction of an immovable 
property (other than plant and machinery) except where it is an input service for further 
supply of works contract service;
(d) goods or services or both received by a taxable person for construction of an 
immovable property (other than plant or machinery) on his own account including when
such goods or services or both are used in the course or furtherance of business.
Explanation.––For the purposes of clauses (c) and (d), the expression 
―construction‖ includes re-construction, renovation, additions or alterations or repairs, to 
the extent of capitalisation, to the said immovable property;
(e) goods or services or both on which tax has been paid under section 10;
(f) goods or services or both received by a non-resident taxable person except 
on goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free 
samples; and
(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.
(6) The Government may prescribe the manner in which the credit referred to 
in sub-sections (1) and (2) may be attributed.
Explanation.––For the purposes of this Chapter and Chapter VI, the expression
―plant and machinery‖ means apparatus, equipment, and machinery fixed to earth by
foundation or structural support that are used for making outward supply of goods or
services or both and includes such foundation and structural supports but excludes—
 
registered person for making an outward taxable supply of the same category of goods or services or both 
or as part of a taxable composite or mixed supply; and
(iv) travel benefits extended to employees on vacation such as leave or home travel 
concession;‖
by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force 
w.e.f. 01st February, 2019. 
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factorypremises

18. Availability of credit in special circumstances.— (1) Subject to such 
conditions and restrictions as may be prescribed—
(a) a person who has applied for registration under this Act within thirty days 
from the date on which he becomes liable to registration and has been granted such 
registration shall be entitled to take credit of input tax in respect of inputs held in stock and 
inputs contained in semi-finished or finished goods held in stock on the day immediately 
preceding the date from which he becomes liable to pay tax under the provisions of this
Act;
(b) a person who takes registration under sub-section (3) of section 25 shall be 
entitled to take credit of input tax in respect of inputs held in stock and inputs contained in
semi-finished or finished goods held in stock on the day immediately preceding the date of 
grant of registration;
(c) where any registered person ceases to pay tax under section 10, he shall be 
entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semifinished or finished goods held in stock and on capital goods on the day immediately preceding
the date from which he becomesliable to pay tax under section 9:
Provided that the credit on capital goods shall be reduced by such percentage 
points as may be prescribed;
(d) where an exempt supply of goods or services or both by a registered person 
becomes a taxable supply, such person shall be entitled to take credit of input tax in 
respect of inputs held in stock and inputs contained in semi-finished or finished goods held 
in stock relatable to such exempt supply and on capital goods exclusively used for such 
exempt supply on the day immediately preceding the date from which such supply 
becomes taxable:
Provided that the credit on capital goods shall be reduced by such percentage 
points as may be prescribed.
(2) A registered person shall not be entitled to take input tax credit under
sub-section (1) in respect of any supply of goods or services or both to him after the expiry 
of one year from the date of issue of tax invoice relating to such supply.
(3) Where there is a change in the constitution of a registered person on 
account of sale, merger, demerger, amalgamation, lease or transfer of the business with 
the specific provisionsfortransfer of liabilities, the said registered person shall be allowed to
transfer the input tax credit which remains unutilised in his electronic credit ledger to such
sold, merged, demerged, amalgamated, leased or transferred business in such manner as
may be prescribed.
(4) Where any registered person who has availed of input tax credit opts to 
pay tax under section 10 or, where the goods or services or both supplied by him become 
wholly exempt, he shall pay an amount, by way of debit in the electronic credit ledger or
electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock
and inputs contained in semi-finished or finished goods held in stock and on capital goods,
reduced by such percentage points as may be prescribed, on the day immediately
preceding the date of exercising of such option or, as the case may be, the date of such
exemption:
Provided that after payment of such amount, the balance of input tax credit, if 
any, lying in his electronic credit ledger shall lapse.
(5) The amount of credit under sub-section (1) and the amount payable under 
sub-section (4) shall be calculated in such manner as may be prescribed.
(6) In case of supply of capital goods or plant and machinery, on which input tax
credit has been taken, the registered person shall pay an amount equal to the input tax
credit taken on the said capital goods or plant and machinery reduced by such percentage
points as may be prescribed or the tax on the transaction value of such capital goods or
plant and machinery determined under section 15, whichever is higher:
Provided that where refractory bricks, moulds and dies, jigs and fixtures are
supplied as scrap, the taxable person may pay tax on the transaction value of such goods
determined under section 15.
 

19. Taking input tax credit in respect of inputs and capital goods sent for 
job work.— (1) The principal shall, subject to such conditions and restrictions as may be 
prescribed, be allowed input tax credit on inputs sent to a job worker for job work.
(2) Notwithstanding anything contained in clause (b) of sub-section (2) of
section 16, the principal shall be entitled to take credit of input tax on inputs even if the 
inputs are directly sent to a job worker for job work without being first brought to his place
of business.
(3) Where the inputs sent for job work are not received back by the principal 
after completion of job work or otherwise or are not supplied from the place of business of
the job worker in accordance with clause (a) or clause (b) of sub-section (1) of section 143
within one year of being sent out, it shall be deemed that such inputs had been supplied 
by the principal to the job worker on the day when the said inputs were sent out:
Provided that where the inputs are sent directly to a job worker, the period of one
year shall be counted from the date of receipt of inputs by the jobworker.
(4) The principal shall, subject to such conditions and restrictions as may be
prescribed, be allowed input tax credit on capital goods sent to a job worker for job work.
(5) Notwithstanding anything contained in clause (b) of sub-section (2) of
section 16, the principal shall be entitled to take credit of input tax on capital goods even
if the capital goods are directly sent to a job worker for job work without being first
brought to his place of business.
(6) Where the capital goods sent for job work are not received back by the 
principal within a period of three years of being sent out, it shall be deemed that such 
capital goods had been supplied by the principal to the job worker on the day when the
said capital goods were sent out:
Provided that where the capital goods are sent directly to a job worker, the period 
of three years shall be counted from the date of receipt of capital goods by the job worker.
(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to
moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.
Explanation.––For the purpose of this section, ―principal‖ means the person
referred to in section 143.
 

20. Manner of distribution of credit by Input Service Distributor.— (1) The
Input Service Distributor shall distribute the credit of central tax as central tax or integrated
tax and integrated tax as integrated tax or central tax, by way of issue of a document
containing the amount of input tax credit being distributed in such manner as may be
prescribed.
(2) The Input Service Distributor may distribute the credit subject to the 
following conditions, namely:––
(a) the credit can be distributed to the recipients of credit against a document 
containing such details as may be prescribed;
(b) the amount of the credit distributed shall not exceed the amount of credit 
available for distribution;
(c) the credit of tax paid on inputservices attributable to a recipient of creditshall 
be distributed only to that recipient;
(d) the credit of tax paid on input services attributable to more than one recipient 
of credit shall be distributed amongst such recipients to whom the input service is 
attributable and such distribution shall be pro rata on the basis of the turnover in a State or
turnover in a Union territory of such recipient, during the relevant period, to the 
aggregate of the turnover of all such recipients to whom such input service is attributable 
and which are operational in the current year, during the said relevant period;
(e) the credit of tax paid on input services attributable to all recipients of credit 
shall be distributed amongst such recipients and such distribution shall be pro rata on the 
basis of the turnover in a State or turnover in a Union territory of such recipient, during
the relevant period, to the aggregate of the turnover of all recipients and which are 
operational in the current year, during the said relevantperiod.
Explanation.––For the purposes of this section,––
(a) the ―relevant period‖ shall be––
(i) if the recipients of credit have turnover in their States or Union territories
in the financial year preceding the year during which credit is to be distributed, the said 
financial year; or
(ii) if some or all recipients of the credit do not have any turnover in their States 
or Union territories in the financial year preceding the year during which the credit is to 
be distributed, the last quarter for which details of such turnover of all the recipients are
available, previous to the month during which credit is to be distributed;
(b) the expression ―recipient of credit‖ means the supplier of goods or services 
or both having the same Permanent Account Number as that of the Input Service
Distributor;
(c) the term ‗‗turnover‘‘, in relation to any registered person engaged in the
supply of taxable goods as well as goods not taxable under this Act, means the value of 
turnover, reduced by the amount of any duty or tax levied under [entries 84 and 92A]40 of
List I of the Seventh Schedule to the Constitution and entries 51 and 54 of List II of the
said Schedule.

21. Manner of recovery of credit distributed in excess.— Where the Input 
Service Distributor distributes the credit in contravention of the provisions contained 
in section 20 resulting in excess distribution of credit to one or more recipients of 
credit, the excess credit so distributed shall be recovered from such recipients along 
with interest, and the provisions of section 73 or section 74, as the case may be, shall, 
mutatis mutandis, apply for determination of amount to be recovered.

22. Persons liable for registration.— (1) Every supplier shall be liable to be 
registered under this Act in the State or Union territory, other than special category States,
from where he makes a taxable supply of goods or services or both, if his aggregate
turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or
both from any of the special category States, he shall be liable to be registered if his 

40 Substituted for ―under entry 84‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 
31 of 2018) – Brought into force w.e.f. 01st February, 2019.
 

aggregate turnover in a financial year exceeds ten lakhrupees:
[Provided further that the Government may, at the request of a special category 
State and on the recommendations of the Council, enhance the aggregate turnover 
referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty 
lakh rupees and subject to such conditions and limitations, as may be so notified:]41
[Provided also that the Government may, at the request of a State and on the 
recommendations of the Council, enhance the aggregate turnover from twenty lakh 
rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged 
exclusively in the supply of goods, subject to such conditions and limitations, as may be 
notified:
Explanation.––For the purposes of this sub-section, a person shall be considered to 
be engaged exclusively in the supply of goods even if he is engaged in exempt supply of 
services provided by way of extending deposits, loans or advances in so far as the 
consideration is represented by way of interest or discount.]42
(2) Every person who, on the day immediately preceding the appointed day, is
registered or holds a licence under an existing law, shall be liable to be registered under
this Act with effect from the appointed day.
(3) Where a business carried on by a taxable person registered under this Act 
is transferred, whether on account of succession or otherwise, to another person as a 
going concern, the transferee or the successor, as the case may be, shall be liable to be
registered with effect from the date of such transfer or succession.
(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case 
of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the
case may be, demerger of two or more companies pursuant to an order of a High Court,
Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date
on which the Registrar of Companies issues a certificate of incorporation giving effect to
such order of the High Court orTribunal.
 
41 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
42 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020.

Explanation.––For the purposes of this section,––
(i) the expression ―aggregate turnover‖ shall include all supplies made by the 
taxable person, whether on his own account or made on behalf of all his principals;
(ii) the supply of goods, after completion of job work, by a registered job worker 
shall be treated as the supply of goods by the principal referred to in section 143, and the
value of such goods shall not be included in the aggregate turnover of the registered job
worker;
(iii) the expression ―special category States‖ shall mean the States as specified 
in sub-clause (g) of clause (4) of article 279A of the Constitution [except the State of 
Jammu and Kashmir]43 [and States of Arunachal Pradesh, Assam, Himachal Pradesh, 
Meghalaya, Sikkim and Uttarakhand.]44

23. Persons not liable for registration.— (1) The following persons shall not
be liable to registration, namely:––
(a) any person engaged exclusively in the business of supplying goods or 
services or both that are not liable to tax or wholly exempt from tax under this Act or 
under the Integrated Goods and Services Tax Act;
(b) an agriculturist, to the extent of supply of produce out of cultivation of land.
(2) The Government may, on the recommendations of the Council, by 
notification, specify the category of persons who may be exempted from obtaining
registration under this Act.

24. Compulsory registration in certain cases.— Notwithstanding anything
contained in sub-section (1) of section 22, the following categories of persons shall be 
required to be registered under this Act,––
(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
 
43 Inserted by The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017 (No. 26 
of 2017) (Corrigendum for this provision issued vide Indian Institutes of Management Act, 2017 dated 31st
December, 2017 (No. 33 of 2017)) – Brought into force w.e.f. 8th July, 2017.
44 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 

(iii) persons who are required to pay tax under reverse charge;
(iv) person who are required to pay tax under sub-section (5) of section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51, whether or not 
separately registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf of 
other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered under this 
Act;
(ix) persons who supply goods or services or both, other than supplies specified 
under sub-section (5) of section 9, through such electronic commerce operator who is 
required to collect tax at source under section 52;
(x) every electronic commerce operator [who is required to collect tax at 
source under section 52;]45
(xi) every person supplying online information and database access or retrieval 
services from a place outside India to a person in India, other than a registered person;
and
(xii) such other person or class of persons as may be notified by the Government 
on the recommendations of the Council.

25. Procedure for registration.— (1) Every person who is liable to be registered
under section 22 or section 24 shall apply for registration in every such State or Union 
territory in which he is so liable within thirty days from the date on which he becomes 
liable to registration, in such manner and subject to such conditions as may be prescribed:
Provided that a casual taxable person or a non-resident taxable person shall apply
for registration at least five days prior to the commencement of business:
[Provided further that a person having a unit, as defined in the Special Economic 
 
45 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 

Zones Act, 2005, in a Special Economic Zone or being a Special Economic Zone 
developer shall have to apply for a separate registration, as distinct from his place of 
business located outside the Special Economic Zone in the same State or Union 
territory.]46
Explanation.—Every person who makes a supply from the territorial waters of
India shall obtain registration in the coastal State or Union territory where the nearest
point of the appropriate baseline is located.
(2) A person seeking registration under this Act shall be granted a single
registration in a State or Union territory:
[Provided that a person having multiple places of business in a State or Union
territory may be granted a separate registration for each such place of business, subject to
such conditions as may be prescribed.]47
(3) A person, though not liable to be registered under section 22 or section 24
may get himself registered voluntarily, and all provisions of this Act, as are applicable to a
registered person, shall apply to such person.
(4) A person who has obtained or is required to obtain more than one 
registration, whether in one State or Union territory or more than one State or Union 
territory shall, in respect of each such registration, be treated as distinct persons for the 
purposes of this Act.
(5) Where a person who has obtained or is required to obtain registration in a
State or Union territory in respect of an establishment, has an establishment in another 
State or Union territory, then such establishments shall be treated as establishments of 
distinct persons for the purposes of this Act.
(6) Every person shall have a Permanent Account Number issued under the 
 
46 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
47 Substituted for ―Provided that a person having multiple business verticals in a State or Union territory may
be granted a separate registration for each business vertical, subject to such conditions as may be
prescribed.‖
by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought into force 
w.e.f. 01st February, 2019. 
Income- tax Act, 1961 in order to be eligible for grant of registration:
Provided that a person required to deduct tax under section 51 may have, in lieu of
a Permanent Account Number, a Tax Deduction and Collection Account Number issued
under the said Act in order to be eligible for grant of registration.
[(6A) Every registered person shall undergo authentication, or furnish proof of 
possession of Aadhaar number, in such form and manner and within such time as may 
be prescribed:
Provided that if an Aadhaar number is not assigned to the registered person, such 
person shall be offered alternate and viable means of identification in such manner as 
Government may, on the recommendations of the Council, prescribe:
Provided further that in case of failure to undergo authentication or furnish proof 
of possession of Aadhaar number or furnish alternate and viable means of identification, 
registration allotted to such person shall be deemed to be invalid and the other provisions 
of this Act shall apply as if such person does not have a registration.
(6B) On and from the date of notification, every individual shall, in order to be 
eligible for grant of registration, undergo authentication, or furnish proof of possession of 
Aadhaar number, in such manner as the Government may, on the recommendations of 
the Council, specify in the said notification:
Provided that if an Aadhaar number is not assigned to an individual, such 
individual shall be offered alternate and viable means of identification in such manner as 
the Government may, on the recommendations of the Council, specify in the said 
notification.
(6C) On and from the date of notification, every person, other than an individual, 
shall, in order to be eligible for grant of registration, undergo authentication, or furnish 
proof of possession of Aadhaar number of the Karta, Managing Director, whole time 
Director, such number of partners, Members of Managing Committee of Association, 
Board of Trustees, authorised representative, authorised signatory and such other class of 
persons, in such manner, as the Government may, on the recommendations of the 
Council, specify in the said notification:
Provided that where such person or class of persons have not been assigned the 
Aadhaar Number, such person or class of persons shall be offered alternate and viable 
means of identification in such manner as the Government may, on the 
recommendations of the Council, specify in the said notification.
(6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) 
shall not apply to such person or class of persons or any State or Union territory or part
thereof, as the Government may, on the recommendations of the Council, specify by 
notification.
Explanation.—For the purposes of this section, the expression ―Aadhaar number‖ 
shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar 
(Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.]48
(7) Notwithstanding anything contained in sub-section (6), a non-resident 
taxable person may be granted registration under sub-section (1) on the basis of such other
documents as may be prescribed.
(8) Where a person who is liable to be registered under this Act fails to obtain 
registration, the proper officer may, without prejudice to any action which may be taken 
under this Act or under any other law for the time being in force, proceed to register such 
person in such manner as may be prescribed.
(9) Notwithstanding anything contained in sub-section (1),––
(a) any specialised agency of the United Nations Organisation or any 
Multilateral Financial Institution and Organisation notified under the United Nations 
(Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and
(b) any other person or class of persons, as may be notified by the Commissioner,
shall be granted a Unique Identity Number in such manner and for such purposes,
including refund of taxes on the notified supplies of goods or services or both received by 
them, as may be prescribed.
(10) The registration or the Unique Identity Number shall be granted or rejected
 
48 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
after due verification in such manner and within such period as may be prescribed.
(11) A certificate of registration shall be issued in such form and with effect from
such date as may be prescribed.
(12) A registration or a Unique Identity Number shall be deemed to have been
granted after the expiry of the period prescribed under sub-section (10), if no deficiency 
has been communicated to the applicant within that period.

26. Deemed registration.— (1) The grant of registration or the Unique Identity
Number under the State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act shall be deemed to be a grant of registration or the Unique Identity 
Number under this Act subject to the condition that the application for registration or the 
Unique Identity Number has not been rejected under this Act within the time specified in
sub-section (10) of section 25.
(2) Notwithstanding anything contained in sub-section (10) of section 25, any
rejection of application for registration or the Unique Identity Number under the State 
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act shall be
deemed to be a rejection of application for registration under this Act.

27. Special provisions relating to casual taxable person and non-resident 
taxable person.— (1) The certificate of registration issued to a casual taxable person or a 
non- resident taxable person shall be valid for the period specified in the application for 
registration or ninety days from the effective date of registration, whichever is earlier and 
such person shall make taxable supplies only after the issuance of the certificate of 
registration:
Provided that the proper officer may, on sufficient cause being shown by the said 
taxable person, extend the said period of ninety days by a further period not exceeding 
ninety days.
(2) A casual taxable person or a non-resident taxable person shall, at the time 
of submission of application for registration under sub-section (1) of section 25, make an 
advance deposit of tax in an amount equivalent to the estimated tax liability of such
person for the period for which the registration is sought:
Provided that where any extension of time is sought under sub-section (1), such 
taxable person shall deposit an additional amount of tax equivalent to the estimated tax 
liability of such person for the period for which the extension is sought.
(3) The amount deposited under sub-section (2) shall be credited to the 
electronic cash ledger of such person and shall be utilised in the manner provided 
under section 49.

28. Amendment of registration.— (1) Every registered person and a person to
whom a Unique Identity Number has been assigned shall inform the proper officer of any
changes in the information furnished at the time of registration or subsequent thereto, in 
such form and manner and within such period as may be prescribed.
(2) The proper officer may, on the basis of information furnished under subsection (1) or as ascertained by him, approve or reject amendments in the registration
particularsin such manner and within such period as may be prescribed:
Provided that approval of the proper officer shall not be required in respect of
amendment of such particulars as may be prescribed:
Provided further that the proper officer shall not reject the application for
amendment in the registration particulars without giving the person an opportunity of 
being heard.
(3) Any rejection or approval of amendments under the State Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be,
shall be deemed to be a rejection or approval under this Act.

29. Cancellation [or suspension]49 of registration.— (1) The proper officer
may, either on his own motion or on an application filed by the registered person or by
his legal heirs, in case of death of such person, cancel the registration, in such manner 
and within such period as may be prescribed, having regard to the circumstances where,–
(a) the business has been discontinued, transferred fully for any reason including 
death of the proprietor, amalgamated with other legal entity, demerged or otherwise 
 
49 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 

disposed of; or
(b) there is any change in the constitution of the business; or
(c) the taxable person, other than the person registered under sub-section (3) of 
section 25, is no longer liable to be registered under section 22 or section 24.
[Provided that during pendency of the proceedings relating to cancellation of 
registration filed by the registered person, the registration may be suspended for such 
period and in such manner as may be prescribed.]50
(2) The proper officer may cancel the registration of a person from such date,
including any retrospective date, as he may deem fit, where,––
(a) a registered person has contravened such provisions of the Act or the rules 
made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three
consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not 
furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of 
section 25 has not commenced business within six months from the date of 
registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or 
suppression of facts:
Provided that the proper officer shall not cancel the registration without giving the 
person an opportunity of being heard:
[Provided further that during pendency of the proceedings relating to cancellation 
of registration, the proper officer may suspend the registration for such period and in such 
manner as may be prescribed.]51
 
50 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
51 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
(3) The cancellation of registration under this section shall not affect the liability
of the person to pay tax and other dues under this Act or to discharge any obligation under
this Act or the rules made thereunder for any period prior to the date of cancellation
whether or not such tax and other dues are determined before or after the date of
cancellation.
(4) The cancellation of registration under the State Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed 
to be a cancellation of registration under this Act.
(5) Every registered person whose registration is cancelled shall pay an 
amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent
to the credit of input tax in respect of inputs held in stock and inputs contained in semifinished or finished goods held in stock or capital goods or plant and machinery on the day
immediately preceding the date of such cancellation or the output tax payable on such
goods, whichever is higher, calculated in such manner as may be prescribed:
Provided that in case of capital goods or plant and machinery, the taxable person
shall pay an amount equal to the input tax credit taken on the said capital goods or plant 
and machinery, reduced by such percentage points as may be prescribed or the tax on the 
transaction value of such capital goods or plant and machinery under section 15,
whichever is higher.
(6) The amount payable under sub-section (5) shall be calculated in such 
manner as may be prescribed.

30. Revocation of cancellation of registration.— (1) Subject to such
conditions as may be prescribed, any registered person, whose registration is cancelled by
the proper officer on his own motion, may apply to such officer for revocation of
cancellation of the registration in the prescribed manner within thirty days from the date of 
service of the cancellation order.
[Provided that the registered person who was served notice under sub-section (2) 
of section 29 in the manner as provided in clause (c) or clause (d) of sub-section (1) of 
section 169 and who could not reply to the said notice, thereby resulting in cancellation 
of his registration certificate and is hence unable to file application for revocation of 
cancellation of registration under sub-section (1) of section 30 of the Act, against such 
order passed up to 31.03.2019, shall be allowed to file application for revocation of 
cancellation of the registration not later than 22.07.2019]52
(2) The proper officer may, in such manner and within such period as may be
prescribed, by order, either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not
be rejected unless the applicant has been given an opportunity of being heard.
(3) The revocation of cancellation of registration under the State Goods and
Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, 
shall be deemed to be a revocation of cancellation of registration under this Act.

52 Inserted vide Order No. 05/2019-GST dated 23.04.2020
 

31. Tax invoice.— (1) A registered person supplying taxable goods shall,
before or at the time of,—
(a) removal of goods for supply to the recipient, where the supply involves 
movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other
case,
issue a tax invoice showing the description, quantity and value of goods, the tax 
charged thereon and such other particulars as may be prescribed:
Provided that the Government may, on the recommendations of the Council, by 
notification, specify the categories of goods or supplies in respect of which a tax invoice 
shall be issued, within such time and in such manner as may be prescribed.
(2) A registered person supplying taxable services shall, before or after the
provision of service but within a prescribed period, issue a tax invoice, showing the
description, value, tax charged thereon and such other particulars as may be prescribed:
Provided that the Government may, on the recommendations of the Council, by 
notification and subject to such conditions as may be mentioned therein, specify the 
categories of services in respect of which—
(a) any other document issued in relation to the supply shall be deemed to 
be a tax invoice; or
(b) tax invoice may not be issued.
(3) Notwithstanding anything contained in sub-sections (1) and (2)––
(a) a registered person may, within one month from the date of issuance of 
certificate of registration and in such manner as may be prescribed, issue a revised invoice
against the invoice already issued during the period beginning with the effective date of
registration till the date of issuance of certificate of registration to him;
(b) a registered person may not issue a tax invoice if the value of the goods or 
services or both supplied is less than two hundred rupees subject to such conditions and
in such manner as may be prescribed;
(c) a registered person supplying exempted goods or services or both or paying 
tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply 
containing such particulars and in such manner as may be prescribed:
Provided that the registered person may not issue a bill of supply if the value of the 
goods or services or both supplied is less than two hundred rupees subject to such 
conditions and in such manner as may be prescribed;
(d) a registered person shall, on receipt of advance payment with respect to any 
supply of goods or services or both, issue a receipt voucher or any other document, 
containing such particulars as may be prescribed, evidencing receipt ofsuch payment;
(e) where, on receipt of advance payment with respect to any supply of goods or 
services or both the registered person issues a receipt voucher, but subsequently no supply 
is made and no tax invoice is issued in pursuance thereof, the said registered person may
issue to the person who had made the payment, a refund voucher against such payment;
(f) a registered person who is liable to pay tax under sub-section (3) or subsection (4) of section 9 shall issue an invoice in respect of goods or services or both
received by him from the supplier who is not registered on the date of receipt of goods or 
services or both;
(g) a registered person who is liable to pay tax under sub-section (3) or subsection (4) of section 9 shall issue a payment voucher at the time of making payment to 
the supplier.
(4) In case of continuous supply of goods, where successive statements of 
accounts or successive payments are involved, the invoice shall be issued before or at the 
time each such statement is issued or, as the case may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3), in case of 
continuous supply of services,––
(a) where the due date of payment is ascertainable from the contract, the invoice 
shall be issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the 
invoice shall be issued before or at the time when the supplier of service receives the 
payment;
(c) where the payment is linked to the completion of an event, the invoice shall 
be issued on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before the
completion of the supply, the invoice shall be issued at the time when the supply ceases 
and such invoice shall be issued to the extent of the supply made before such cessation.
(7) Notwithstanding anything contained in sub-section (1), where the goods 
being sent or taken on approval for sale or return are removed before the supply takes 
place, the invoice shall be issued before or at the time of supply or six months from the date
of removal, whichever isearlier.
Explanation.––For the purposes of this section, the expression ―tax invoice‖ shall 
include any revised invoice issued by the supplier in respect of a supply made earlier.

31A. Facility of digital payment to recipient.— (1) The Government may, on 
the recommendations of the Council, prescribe a class of registered persons who shall 
provide prescribed modes of electronic payment to the recipient of supply of goods or 
services or both made by him and give option to such recipient to make payment 
accordingly, in such manner and subject to such conditions and restrictions, as may be 
prescribed.

32. Prohibition of unauthorised collection of tax.— (1) A person who is not a 
registered person shall not collect in respect of any supply of goods or services or both 
any amount by way of tax under this Act.
(2) No registered person shall collect tax except in accordance with the
provisions of this Act or the rules made thereunder.

33. Amount of tax to be indicated in tax invoice and other documents.—
Notwithstanding anything contained in this Act or any other law for the time being in
force, where any supply is made for a consideration, every person who is liable to pay tax 
for such supply shall prominently indicate in all documents relating to assessment, tax 
invoice and other like documents, the amount of tax which shall form part of the price at 
which such supply is made.
 
53 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 

34. Credit and debit notes.— (1) [Where one or more tax invoices have]54
been issued for supply of any goods or services or both and the taxable value or tax
charged in that tax invoice is found to exceed the taxable value or tax payable in respect
of such supply, or where the goods supplied are returned by the recipient, or where goods 
or services or both supplied are found to be deficient, the registered person, who has 
supplied such goods or services or both, may issue to the recipient [one or more credit 
notes for supplies made in a financial year]55 containing such particulars as may be
prescribed.
(2) Any registered person who issues a credit note in relation to a supply of
goods or services or both shall declare the details of such credit note in the return for the
month during which such credit note has been issued but not later than September
following the end of the financial year in which such supply was made, or the date of 
furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be
adjusted in such manner as may be prescribed:
Provided that no reduction in output tax liability of the supplier shall be 
permitted, if the incidence of tax and interest on such supply has been passed on to any 
other person.
(3) [Where one or more tax invoices have]56 been issued for supply of any 
goods or services or both and the taxable value or tax charged in that tax invoice is found 
to be less than the taxable value or tax payable in respect of such supply, the registered
person, who has supplied such goods or services or both, shall issue to the recipient [one or 
more debit notes for supplies made in a financial year]57 containing such particulars as 
 
54 Substituted for ―Where a tax invoice has‖ by The Central Goods and Services Tax (Amendment) Act, 
2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019. 
55 Substituted for ―a credit note‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 
of 2018) – Brought into force w.e.f. 01st February, 2019. 
56 Substituted for ―Where a tax invoice has‖ by The Central Goods and Services Tax (Amendment) Act, 
2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019. 
57 Substituted for ―a debit note‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31

may be prescribed.
(4) Any registered person who issues a debit note in relation to a supply of 
goods or services or both shall declare the details of such debit note in the return for the
month during which such debit note has been issued and the tax liability shall be adjusted
in such manner as may be prescribed.
Explanation.––For the purposes of this Act, the expression ―debit note‖ shall
include a supplementary invoice.

of 2018) – Brought into force w.e.f. 01st February, 2019.

35. Accounts and other records.— (1) Every registered person shall keep and
maintain, at his principal place of business, as mentioned in the certificate of registration, a 
true and correct account of—
(a) production or manufacture of goods;
(b) inward and outward supply of goods or services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid; and
(f) such other particulars as may be prescribed:
Provided that where more than one place of business is specified in the certificate
of registration, the accounts relating to each place of business shall be kept at such places 
of business:
Provided further that the registered person may keep and maintain such accounts
and other particulars in electronic form in such manner as may be prescribed.
(2) Every owner or operator of warehouse or godown or any other place used 
for storage of goods and every transporter, irrespective of whether he is a registered
person or not, shall maintain records of the consigner, consignee and other relevant 
details of the goods in such manner as may be prescribed.
(3) The Commissioner may notify a class of taxable persons to maintain 
additional accounts or documents for such purpose as may be specified therein.
(4) Where the Commissioner considers that any class of taxable person is not 
in a position to keep and maintain accounts in accordance with the provisions of this
section, he may, for reasons to be recorded in writing, permit such class of taxable persons
to maintain accounts in such manner as may be prescribed.
(5) Every registered person whose turnover during a financial year exceeds the 
prescribed limit shall get his accounts audited by a chartered accountant or a cost
accountant and shall submit a copy of the audited annual accounts, the reconciliation 
statement under sub-section (2) of section 44 and such other documents in such form and
manner as may be prescribed:
[Provided that nothing contained in this sub-section shall apply to any department 
of the Central Government or a State Government or a local authority, whose books of 
account are subject to audit by the Comptroller and Auditor-General of India or an 
auditor appointed for auditing the accounts of local authorities under any law for the 
time being in force.]58
(6) Subject to the provisions of clause (h) of sub-section (5) of section 17, 
where the registered person fails to account for the goods or services or both in 
accordance with the provisions of sub-section (1), the proper officer shall determine the 
amount of tax payable on the goods or services or both that are not accounted for, as if 
such goods or services or both had been supplied by such person and the provisions of 
section 73 or section 74, as the case may be, shall, mutatis mutandis, apply for 
determination of such tax.

36. Period of retention of accounts.— Every registered person required to 
keep and maintain books of account or other records in accordance with the provisions of
sub-section (1) of section 35 shall retain them until the expiry of seventy-two months from
the due date of furnishing of annual return for the year pertaining to such accounts and
records:
Provided that a registered person, who is a party to an appeal or revision or any
other proceedings before any Appellate Authority or Revisional Authority or Appellate
Tribunal or court, whether filed by him or by the Commissioner, or is under investigation 
for an offence under Chapter XIX, shall retain the books of account and other records
pertaining to the subject matter of such appeal or revision or proceedings or investigation
for a period of one year after final disposal of such appeal or revision or proceedings or
investigation, or for the period specified above, whichever islater.
 
58 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
 

37. Furnishing details of outward supplies.— (1) Every registered person,
other than an Input Service Distributor, a non-resident taxable person and a person paying 
tax under the provisions of section 10 or section 51 or section 52, shall furnish,
electronically, in such form and manner as may be prescribed, the details of outward 
supplies of goods or services or both effected during a tax period on or before the tenth 
day of the month succeeding the said tax period and such details shall be communicated
to the recipient of the said supplies within such time and in such manner as may be
prescribed:
Provided that the registered person shall not be allowed to furnish the details of 
outward supplies during the period from the eleventh day to the fifteenth day of the
month succeeding the tax period:
Provided further that the Commissioner may, for reasons to be recorded in writing,
by notification, extend the time limit for furnishing such details for such class of taxable
persons as may be specified therein:
Provided also that any extension of time limit notified by the Commissioner of
State tax or Commissioner of Union territory tax shall be deemed to be notified by the 
Commissioner.
(2) Every registered person who has been communicated the details under 
sub-section (3) of section 38 or the details pertaining to inward supplies of Input Service 
Distributor under sub-section (4) of section 38, shall either accept or reject the details so 
communicated, on or before the seventeenth day, but not before the fifteenth day, of the 
month succeeding the tax period and the details furnished by him under sub-section (1)
shall stand amended accordingly.
(3) Any registered person, who has furnished the details under sub-section (1) 
for any tax period and which have remained unmatched under section 42 or section 43, 
shall, upon discovery of any error or omission therein, rectify such error or omission in 
such manner as may be prescribed, and shall pay the tax and interest, if any, in case
there is a short payment of tax on account of such error or omission, in the return to be 
furnished for such tax period:
Provided that no rectification of error or omission in respect of the details 
furnished under sub-section (1) shall be allowed after furnishing of the return under section
39 for the month of September following the end of the financial year to which such details
pertain, or furnishing of the relevant annual return, whichever is earlier.
[Provided further that the rectification of error or omission in respect of the details 
furnished under sub-section (1) shall be allowed after furnishing of the return under section 
39 for the month of September, 2018 till the due date for furnishing the details under 
subsection (1) for the month of March, 2019 or for the quarter January, 2019 to March, 
2019] 59
Explanation.––For the purposes of this Chapter, the expression ―details of outward 
supplies‖ shall include details of invoices, debit notes, credit notes and revised invoices 
issued in relation to outward supplies made during any tax period.

38. Furnishing details of inward supplies.— (1) Every registered person, 
other than an Input Service Distributor or a non-resident taxable person or a person 
paying tax under the provisions of section 10 or section 51 or section 52, shall verify, 
validate, modify or delete, if required, the details relating to outward supplies and credit 
or debit notes communicated under sub-section (1) of section 37 to prepare the details of
his inward supplies and credit or debit notes and may include therein, the details of 
inward supplies and credit or debit notes received by him in respect of such supplies that 
have not been declared by the supplier under sub-section (1) of section 37.
(2) Every registered person, other than an Input Service Distributor or a nonresident taxable person or a person paying tax under the provisions of section 10 or 
section 51 or section 52, shall furnish, electronically, the details of inward supplies of 
taxable goods or services or both, including inward supplies of goods or services or both
on which the tax is payable on reverse charge basis under this Act and inward supplies of
goods or services or both taxable under the Integrated Goods and Services Tax Act or on
which integrated goods and services tax is payable under section 3 of the Customs Tariff
Act, 1975, and credit or debit notes received in respect of such supplies during a tax period 
after the tenth day but on or before the fifteenth day of the month succeeding the tax
period in such form and manner as may be prescribed:
Provided that the Commissioner may, for reasons to be recorded in writing, by 
notification, extend the time limit for furnishing such details for such class of taxable
persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of
State tax or Commissioner of Union territory tax shall be deemed to be notified by the
Commissioner.
(3) The details of supplies modified, deleted or included by the recipient and
furnished under sub-section (2) shall be communicated to the supplier concerned in such
manner and within such time as may be prescribed.
(4) The details of supplies modified, deleted or included by the recipient in 
the return furnished under sub-section (2) or sub-section (4) of section 39 shall be 
communicated to the supplier concerned in such manner and within such time as may
be prescribed.
(5) Any registered person, who has furnished the details under sub-section (2)
for any tax period and which have remained unmatched under section 42 or section 43,
shall, upon discovery of any error or omission therein, rectify such error or omission in 
the tax period during which such error or omission is noticed in such manner as may be 
prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax
on account ofsuch error or omission, in the return to be furnished for such tax period:
Provided that no rectification of error or omission in respect of the details 
furnished under sub-section (2) shall be allowed after furnishing of the return under section
39 for the month of September following the end of the financial year to which such details
pertain, or furnishing of the relevant annual return, whichever is earlier.
 
59 Inserted vide Order No. 02/2018-Central Tax dated 31.12.2018

39. Furnishing of returns.— (1) Every registered person, other than an Input 
Service Distributor or a non-resident taxable person or a person paying tax under the 
provisions of section 10 or section 51 or section 52 shall, for every calendar month or part
thereof, furnish, in such form and manner as may be prescribed, a return, electronically, 
of inward and outward supplies of goods or services or both, input tax credit availed, tax 
payable, tax paid and such other particulars, in such form and manner, and within such 
time, as may be prescribed, on or before the twentieth day of the month succeeding such 
calendar month or part thereof.
(2) A registered person paying tax under the provisions of section 10 shall, for 
each quarter or part thereof, furnish, in such form and manner as may be prescribed, a 
return, electronically, of turnover in the State or Union territory, inward supplies of 
goods or services or both, tax payable and tax paid within eighteen days after the end of 
such quarter.
(3) Every registered person required to deduct tax at source under the provisions 
of section 51 shall furnish, in such form and manner as may be prescribed, a return, 
electronically, for the month in which such deductions have been made within ten days 
after the end of such month. 
(4) Every taxable person registered as an Input Service Distributor shall, for every 
calendar month or part thereof, furnish, in such form and manner as may be prescribed, a 
return, electronically, within thirteen days after the end of such month. 
(5) Every registered non-resident taxable person shall, for every calendar month or 
part thereof, furnish, in such form and manner as may be prescribed, a return, 
electronically, within twenty days after the end of a calendar month or within seven days 
after the last day of the period of registration specified under sub-section (1) of section 27, 
whichever is earlier. 
(6) The Commissioner may, for reasons to be recorded in writing, by notification, 
extend the time limit for furnishing the returns under this section for such class of 
registered persons as may be specified therein: Provided that any extension of time limit 
notified by the Commissioner of State tax or Union territory tax shall be deemed to be 
notified by the Commissioner.
(7) Every registered person, who is required to furnish a return under sub-section 
(1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the 
tax due as per such return not later than the last date on which he is required to furnish 
such return (8) Every registered person who is required to furnish a return under sub-section 
(1) or sub-section (2) shall furnish a return for every tax period whether or not any 
supplies of goods or services or both have been made during such tax period. 
(9) Subject to the provisions of sections 37 and 38, if any registered person after 
furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or subsection (4) or sub-section (5) discovers any omission or incorrect particulars therein, other 
than as a result of scrutiny, audit, inspection or enforcement activity by the tax 
authorities, he shall rectify such omission or incorrect particulars in the return to be 
furnished for the month or quarter during which such omission or incorrect particulars 
are noticed, subject to payment of interest under this Act: 
Provided that no such rectification of any omission or incorrect particulars shall 
be allowed after the due date for furnishing of return for the month of September or 
second quarter following the end of the financial year, or the actual date of furnishing of 
relevant annual return, whichever is earlier. 
(10) A registered person shall not be allowed to furnish a return for a tax period if 
the return for any of the previous tax periods has not been furnished by him.

40. First return.— Every registered person who has made outward supplies in 
the period between the date on which he became liable to registration till the date on 
which registration has been granted shall declare the same in the first return furnished by 
him after grant of registration.

41. Claim of input tax credit and provisional acceptance thereof.— (1) Every 
registered person shall, subject to such conditions and restrictions as may be prescribed,
be entitled to take the credit of eligible input tax, as self-assessed, in his return and such 
amount shall be credited on a provisional basis to his electronic credit ledger.
(2) The credit referred to in sub-section (1) shall be utilised only for payment of
self- assessed output tax as per the return referred to in the said sub-section.

42. Matching, reversal and reclaim of input tax credit.— (1) The details of
every inward supply furnished by a registered person (hereafter in this section referred to as
the ―recipient‖) for a tax period shall, in such manner and within such time as may be 
prescribed, be matched

(a) with the corresponding details of outward supply furnished by the 
corresponding registered person (hereafter in this section referred to as the ―supplier‖) in
his valid return for the same tax period or any preceding tax period;
(b) with the integrated goods and servicestax paid undersection 3 of the Customs 
TariffAct, 1975 in respect of goods imported by him; and
(c) for duplication of claims of input tax credit.
(2) The claim of input tax credit in respect of invoices or debit notes relating to
inward supply that match with the details of corresponding outward supply or with the 
integrated goods and services tax paid under section 3 of the Customs Tariff Act, 1975 in 
respect of goods imported by him shall be finally accepted and such acceptance shall be
communicated, in such manner as may be prescribed, to the recipient.
(3) Where the input tax credit claimed by a recipient in respect of an inward
supply is in excess of the tax declared by the supplier for the same supply or the outward
supply is not declared by the supplier in his valid returns, the discrepancy shall be
communicated to both such persons in such manner as may be prescribed.
(4) The duplication of claims of input tax credit shall be communicated to the
recipient in such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under 
sub-section (3) and which is not rectified by the supplier in his valid return for the month in 
which discrepancy is communicated shall be added to the output tax liability of the
recipient, in such manner as may be prescribed, in his return for the month succeeding 
the month in which the discrepancy is communicated.
(6) The amount claimed as input tax credit that is found to be in excess on
account of duplication of claims shall be added to the output tax liability of the recipient in
hisreturn for the month in which the duplication is communicated.
(7) The recipient shall be eligible to reduce, from his output tax liability, the
amount added under sub-section (5), if the supplier declares the details of the invoice or
debit note in his valid return within the time specified in sub-section (9) of section 39.
(8) A recipient in whose output tax liability any amount has been added under 
sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under 
sub-section (1) of section 50 on the amount so added from the date of availing of credit till 
the corresponding additions are made under the said sub-sections.
(9) Where any reduction in output tax liability is accepted under sub-section 
(7), the interest paid under sub-section (8) shall be refunded to the recipient by crediting the
amount in the corresponding head of his electronic cash ledger in such manner as may be
prescribed:
Provided that the amount of interest to be credited in any case shall not exceed the 
amount of interest paid by the supplier.
(10) The amount reduced from the output tax liability in contravention of the 
provisions of sub-section (7) shall be added to the output tax liability of the recipient in his 
return for the month in which such contravention takes place and such recipient shall be 
liable to pay interest on the amount so added at the rate specified in sub-section (3) of 
section 50.

43. Matching, reversal and reclaim of reduction in output tax liability.— (1) 
The details of every credit note relating to outward supply furnished by a registered
person (hereafter in this section referred to as the ―supplier‖) for a tax period shall, in such 
manner and within such time as may be prescribed, be matched––
(a) with the corresponding reduction in the claim for input tax credit by the 
corresponding registered person (hereafter in this section referred to as the ―recipient‖) in
his valid return for the same tax period or any subsequent tax period; and
(b) for duplication of claimsfor reduction in output tax liability.
(2) The claim for reduction in output tax liability by the supplier that matches
with the corresponding reduction in the claim for input tax credit by the recipient shall be 
finally accepted and communicated, in such manner as may be prescribed, to the supplier.
(3) Where the reduction of output tax liability in respect of outward supplies
exceeds the corresponding reduction in the claim for input tax credit or the corresponding
credit note is not declared by the recipient in his valid returns, the discrepancy shall be
communicated to both such persons in such manner as may be prescribed.
(4) The duplication of claims for reduction in output tax liability shall be
communicated to the supplier in such manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under 
sub-section (3) and which is not rectified by the recipient in his valid return for the month in 
which discrepancy is communicated shall be added to the output tax liability of the
supplier, in such manner as may be prescribed, in his return for the month succeeding the 
month in which the discrepancy is communicated.
(6) The amount in respect of any reduction in output tax liability that is found to
be on account of duplication of claims shall be added to the output tax liability of the
supplierin his return for the month in which such duplication iscommunicated.
(7) The supplier shall be eligible to reduce, from his output tax liability, the 
amount added under sub-section (5) if the recipient declares the details of the credit note in
his valid return within the time specified in sub-section (9) of section 39.
(8) A supplier in whose output tax liability any amount has been added under 
sub-section (5) or sub-section (6), shall be liable to pay interest at the rate specified under 
sub-section (1) of section 50 in respect of the amount so added from the date of such claim 
for reduction in the output tax liability till the corresponding additions are made under 
the said sub-sections.
(9) Where any reduction in output tax liability is accepted under sub-section 
(7), the interest paid under sub-section (8) shall be refunded to the supplier by crediting the
amount in the corresponding head of his electronic cash ledger in such manner as may be
prescribed:
Provided that the amount of interest to be credited in any case shall not exceed the 
amount of interest paid by the recipient.
(10) The amount reduced from output tax liability in contravention of the
provisions of sub-section (7) shall be added to the output tax liability of the supplier in his
return for the month in which such contravention takes place and such supplier shall be 
liable to pay interest on the amount so added at the rate specified in sub-section (3) of 
section 50.
 

44. Annual return.— (1) Every registered person, other than an Input Service 
Distributor, a person paying tax under section 51 or section 52, a casual taxable person and
a non-resident taxable person, shall furnish an annual return for every financial year
electronically in such form and manner as may be prescribed on or before the thirty-first
day of December following the end of such financial year:
[Provided that the Commissioner may, on the recommendations of the Council and 
for reasons to be recorded in writing, by notification, extend the time limit for furnishing the 
annual return for such class of registered persons as may be specified therein:
Provided further that any extension of 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.]60
(2) Every registered person who is required to get his accounts audited in
accordance with the provisions of sub-section (5) of section 35 shall furnish,
electronically, the annual return under sub-section (1) along with a copy of the audited 
annual accounts and a reconciliation statement, reconciling the value of supplies declared 
in the return furnished for the financial year with the audited annual financial statement, 
and such other particulars as may be prescribed.
[Explanation.- For the purposes of this section, it is hereby declared that the annual 
return for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on 
or before the [31st January, 2020]61 and the annual return for the period from the 1st 
April, 2018 to the 31st March, 2019 shall be furnished on or before the 31st March, 
2020.]
62
 
60 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
61 Substituted for ―31st December, 2019‖ by Order No. 10/2019 dated 26.12.2019
62 Substituted by Order No.08/2019 dated 14.12.2019 for ―Explanation.- For the purposes of this section, 
it is hereby declared that the annual return for the period from the 1st July, 2017 to the [30th
November,2019] (Substituted for ―31st August, 2019‖ vide Order No. 06/2019-Central Tax dated 28.06.2019, which 
was substituted for ―30th June, 2019‖ vide Order No. 03/2018-Central Tax dated 31.12.2018, which was substituted for 
―31st March, 2019‖) shall be furnished on or before the [30th November, 2019] (Substituted for ―31st August, 
2019‖ vide Order No. 06/2019-Central Tax dated 28.06.2019, which was substituted for ―30th June, 2019‖ vide Order 
 

45. Final return.— Every registered person who is required to furnish a return 
under sub-section(1) of section 39 and whose registration has been cancelled shall furnish 
a final return within three months of the date of cancellation or date of order of
cancellation, whichever islater, in such form and manner as may be prescribed.

46. Notice to return defaulters.— Where a registered person fails to furnish a
return under section 39 or section 44 or section 45, a notice shall be issued requiring him to
furnish such return within fifteen daysin such form and manner as may be prescribed.

47. Levy of late fee.— (1) Any registered person who fails to furnish the 
details of outward or inward supplies required under section 37 or section 38 or returns 
required under section 39 or section 45 by the due date shall pay a late fee of one 
hundred rupees for every day during which such failure continues subject to a 
maximum amount of five thousand rupees.
(2) Any registered person who fails to furnish the return required under section
44 by the due date shall be liable to pay a late fee of one hundred rupeesfor every day during
which such failure continues subject to a maximum of an amount calculated at a quarter
per cent. of his turnover in the State or Union territory.

48. Goods and services tax practitioners.— (1) The manner of approval of
goods and services tax practitioners, their eligibility conditions, duties and obligations,
manner of removal and other conditionsrelevant for their functioning shall be such as may 
be prescribed.
(2) A registered person may authorise an approved goods and services tax
practitioner to furnish the details of outward supplies under section 37, the details of 
inward supplies under section 38 and the return under section 39 or section 44 or section
45 [and to perform such other functions]63 in such manner as may be prescribed.
(3) Notwithstanding anything contained in sub-section (2), the responsibility 
for correctness of any particulars furnished in the return or other details filed by the goods
 
No. 03/2018-Central Tax dated 31.12.2018, which was substituted for ―31st March, 2019‖).‖This explanation was 
inserted vide Order No. 01/2018-Central Tax dated 11.12.2018. 
63 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 
and services tax practitioners shall continue to rest with the registered person on whose 
behalf such return and details are furnished

49. Payment of tax, interest, penalty and other amounts.— (1) Every deposit
made towards tax, interest, penalty, fee or any other amount by a person by internet 
banking or by using credit or debit cards or National Electronic Fund Transfer or Real
Time Gross Settlement or by such other mode and subject to such conditions and
restrictions as may be prescribed, shall be credited to the electronic cash ledger of such 
person to be maintained in such manner as may be prescribed.
(2) The input tax credit as self-assessed in the return of a registered person 
shall be credited to his electronic credit ledger, in accordance with section 41, to be 
maintained in such manner as may be prescribed.
(3) The amount available in the electronic cash ledger may be used for making 
any payment towards tax, interest, penalty, fees or any other amount payable under the
provisions of this Act or the rules made thereunder in such manner and subject to such
conditions and within such time as may be prescribed.
(4) The amount available in the electronic credit ledger may be used for
making any payment towards output tax under this Act or under the Integrated Goods
and Services Tax Act in such manner and subject to such conditions and within such time as
may be prescribed.
(5) The amount of input tax credit available in the electronic credit ledger of the
registered person on account of––
(a) integrated tax shall first be utilised towards payment of integrated tax and the 
amount remaining, if any, may be utilised towards the payment of central tax and State tax,
or as the case may be, Union territory tax, in that order;
(b) the central tax shall first be utilised towards payment of central tax and the 
amount remaining, if any, may be utilised towards the payment of integrated tax;
(c) the State tax shall first be utilised towards payment of State tax and the 
amount remaining, if any, may be utilised towards payment of integrated tax
[Provided that the input tax credit on account of State tax shall be utilised towards 
payment of integrated tax only where the balance of the input tax credit on account of 
central tax is not available for payment of integrated tax;]64;
(d) the Union territory tax shall first be utilised towards payment of Union
territory tax and the amount remaining, if any, may be utilised towards payment of integrated
tax:
[Provided that the input tax credit on account of Union territory tax shall be utilised 
towards payment of integrated tax only where the balance of the input tax credit on account 
of central tax is not available for payment of integrated tax;]65
(e) the central tax shall not be utilised towards payment of State tax or Union 
territory tax; and
(f) the State tax or Union territory tax shall not be utilised towards payment of 
central tax.
(6) The balance in the electronic cash ledger or electronic credit ledger after
payment of tax, interest, penalty, fee or any other amount payable under this Act or the 
rules made thereunder may be refunded in accordance with the provisions of section 54.
(7) All liabilities of a taxable person under this Act shall be recorded and
maintained in an electronic liability register in such manner as may be prescribed.
(8) Every taxable person shall discharge his tax and other dues under this Act 
or the rules made thereunder in the following order, namely:––
(a) self-assessed tax, and other dues related to returns of previous tax periods;
(b) self-assessed tax, and other duesrelated to the return of the current tax period;
(c) any other amount payable under this Act or the rules made thereunder
including the demand determined under section 73 or section 74.
(9) Every person who has paid the tax on goods or services or both under this 
Act shall, unless the contrary is proved by him, be deemed to have passed on the full
 
64 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought into 
force w.e.f. 01st February, 2019. .
65 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019.
incidence of such tax to the recipient of such goods or services or both.
Explanation.––For the purposes of this section,—
(a) the date of credit to the account of the Government in the authorised bank 
shall be deemed to be the date of deposit in the electronic cash ledger;
(b) the expression,—
(i) ―tax dues‖ means the tax payable under this Act and does not include 
interest, fee and penalty; and
(ii) ―other dues‖ means interest, penalty, fee or any other amount payable under 
this Act or the rules made thereunder.
(10) [A registered person may, on the common portal, transfer any amount of 
tax, interest, penalty, fee or any other amount available in the electronic cash ledger 
under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, 
Union territory tax or cess, in such form and manner and subject to such conditions and 
restrictions as may be prescribed and such transfer shall be deemed to be a refund from 
the electronic cash ledger under this Act.
(11) Where any amount has been transferred to the electronic cash ledger under 
this Act, the same shall be deemed to be deposited in the said ledger as provided in subsection (1).]66

49A. Utilisation of input tax credit subject to certain conditions.— (1) 
Notwithstanding anything contained in section 49, the input tax credit on account of 
central tax, State tax or Union territory tax shall be utilised towards payment of 
integrated tax, central tax, State tax or Union territory tax, as the case may be, only after 
the input tax credit available on account of integrated tax has first been utilised fully 
towards such payment.

49B. Order of utilisation of input tax credit.— (1) Notwithstanding anything 
contained in this Chapter and subject to the provisions of clause (e) and clause (f) of subsection (5) of section 49, the Government may, on the recommendations of the Council, 
prescribe the order and manner of utilisation of the input tax credit on account of 
integrated tax, central tax, State tax or Union territory tax, as the case may be, towards 
payment of any such tax.]
 
66 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 

50. Interest on delayed payment of tax.— (1) Every person who is liable to
pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails
to pay the tax or any part thereof to the Government within the period prescribed, shall for
the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at 
such rate, not exceeding eighteen per cent., as may be notified by the Government on the
recommendations of the Council:
[Provided that the interest on tax payable in respect of supplies made during a tax 
period and declared in the return for the said period furnished after the due date in 
accordance with the provisions of section 39, except where such return is furnished after 
commencement of any proceedings under section 73 or section 74 in respect of the said 
period, shall be levied on that portion of the tax that is paid by debiting the electronic 
cash ledger.]68
(2) The interest under sub-section (1) shall be calculated, in such manner as 
may be prescribed, from the day succeeding the day on which such tax was due to be
paid.
(3) A taxable person who makes an undue or excess claim of input tax credit 
under sub-section (10) of section 42 or undue or excess reduction in output tax liability 
under sub-section (10) of section 43, shall pay interest on such undue or excess claim or 
on such undue or excess reduction, as the case may be, at such rate not exceeding twentyfour per cent., as may be notified by the Government on the recommendations of the
Council.

51. Tax deduction at source.— (1) Notwithstanding anything to the contrary
contained in thisAct,the Government may mandate,––
 
67 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought into 
force w.e.f. 01st February, 2019. 
68 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st September, 
2020.

(a) a department or establishment of the Central Government or State 
Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government 
on the recommendations of the Council, (hereafter in this section referred to as ―the 
deductor‖), to deduct tax at the rate of one per cent. from the payment made or credited
to the supplier (hereafter in this section referred to as ―the deductee‖) of taxable goods or 
services or both, where the total value of such supply, under a contract, exceeds two lakh 
and fifty thousand rupees:
Provided that no deduction shall be made if the location of the supplier and the
place of supply is in a State or Union territory which is different from the State or as the
case may be, Union territory of registration of the recipient.
Explanation.––For the purpose of deduction of tax specified above, the value of 
supply shall be taken as the amount excluding the central tax, State tax, Union territory
tax, integrated tax and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the
Government by the deductor within ten days after the end of the month in which such
deduction is made, in such manner as may be prescribed.
(3) The deductor shall furnish to the deductee a certificate mentioning therein 
the contract value, rate of deduction, amount deducted, amount paid to the Government 
and such other particulars in such manner as may be prescribed.
(4) If any deductor fails to furnish to the deductee the certificate, after 
deducting the tax at source, within five days of crediting the amount so deducted to the 
Government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees 
per day from the day after the expiry of such five days period until the failure is rectified, 
subject to a maximum amount of five thousand rupees.
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax
deducted and reflected in the return of the deductor furnished under sub-section (3) of
section 39, in such manner as may be prescribed.
(6) If any deductor fails to pay to the Government the amount deducted as tax
under sub-section (1), he shall pay interest in accordance with the provisions of sub-section
(1) of section 50, in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made
in the manner specified in section 73 or section 74.
(8) The refund to the deductor or the deductee arising on account of excess or
erroneous deduction shall be dealt with in accordance with the provisions of section 54:
Provided that no refund to the deductor shall be granted, if the amount deducted 
has been credited to the electronic cash ledger of the deductee.

52. Collection of tax at source.— (1) Notwithstanding anything to the contrary
contained in this Act, every electronic commerce operator (hereafter in this section 
referred to as the ―operator‖), not being an agent, shall collect an amount calculated at
such rate not exceeding one per cent., as may be notified by the Government on the 
recommendations of the Council, of the net value of taxable supplies made through it by
other suppliers where the consideration with respect to such supplies is to be collected by 
the operator.
Explanation.––For the purposes of this sub-section, the expression ―net value of 
taxable supplies‖ shall mean the aggregate value of taxable supplies of goods or services or 
both, other than services notified under sub-section (5) of section 9, made during any
month by all registered persons through the operator reduced by the aggregate value of 
taxable supplies returned to the suppliers during the said month.
(2) The power to collect the amount specified in sub-section (1) shall be 
without prejudice to any other mode of recovery from theoperator.
(3) The amount collected under sub-section (1) shall be paid to the Government
by the operator within ten days after the end of the month in which such collection is made,
in such manner as may be prescribed.
(4) Every operator who collects the amount specified in sub-section (1) shall
furnish a statement, electronically, containing the details of outward supplies of goods or
services or both effected through it, including the supplies of goods or services or both
returned through it, and the amount collected under sub-section (1) during a month, in
such form and manner as may be prescribed, within ten days after the end of such month:
[Explanation: - For the purposes of this sub-section, it is hereby declared that the 
due date for furnishing the said statement for the months of October, November and 
December, 2018 shall be the [07th February, 2019]
69.]70
[Provided that the Commissioner may, for reasons to be recorded in writing, by 
notification, extend the time limit for furnishing the statement for such class of registered 
persons as may be specified therein:
Provided further that any extension of 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.]71
(5) Every operator who collects the amount specified in sub-section (1) shall
furnish an annual statement, electronically, containing the details of outward supplies of 
goods or services or both effected through it, including the supplies of goods or services 
or both returned through it, and the amount collected under the said sub-section during the
financial year, in such form and manner as may be prescribed, before the thirty first day of
December following the end of such financialyear
[Provided that the Commissioner may, on the recommendations of the Council and 
for reasons to be recorded in writing, by notification, extend the time limit for furnishing the 
annual statement for such class of registered persons as may be specified therein:
Provided further that any extension of 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.]72
(6) If any operator after furnishing a statement under sub-section (4) discovers 

 
69 Substituted for “31st January, 2019” vide Order No 02/2019-Central Tax dated 01.02.2019
70 Inserted vide Order No. 04/2018- Central Tax dated 31.12.2018
71 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 
72 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020.

any omission or incorrect particulars therein, other than as a result of scrutiny, audit,
inspection or enforcement activity by the tax authorities, he shall rectify such omission or 
incorrect particulars in the statement to be furnished for the month during which such 
omission or incorrect particulars are noticed, subject to payment of interest, as 
specified in sub-section (1) of section 50:
Provided that no such rectification of any omission or incorrect particulars shall 
be allowed after the due date for furnishing of statement for the month of September
following the end of the financial year or the actual date of furnishing of the relevant
annualstatement, whichever is earlier.
(7) The supplier who has supplied the goods or services or both through the
operator shall claim credit, in his electronic cash ledger, of the amount collected and
reflected in the statement of the operator furnished under sub-section (4), in such manner 
as may be prescribed.
(8) The details of supplies furnished by every operator under sub-section (4)
shall be matched with the corresponding details of outward supplies furnished by the 
concerned supplier registered under this Act in such manner and within such time as may
be prescribed.
(9) Where the details of outward supplies furnished by the operator under 
sub-section (4) do not match with the corresponding details furnished by the supplier under 
[section 37 or section 39]73, the discrepancy shall be communicated to both persons in 
such manner and within such time as may be prescribed.
(10) The amount in respect of which any discrepancy is communicated under 
sub-section (9) and which is not rectified by the supplier in his valid return or the operator
in his statement for the month in which discrepancy is communicated, shall be added to 
the output tax liability of the said supplier, where the value of outward supplies furnished
by the operator is more than the value of outward supplies furnished by the supplier, in
his return for the month succeeding the month in which the discrepancy is 
communicated in such manner as may be prescribed.
 
73 Substituted for ―section 37‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) – Brought into force w.e.f. 01st February, 2019. 
(11) The concerned supplier, in whose output tax liability any amount has been
added under sub-section (10), shall pay the tax payable in respect of such supply along 
with interest, at the rate specified under sub-section (1) of section 50 on the amount so 
added from the date such tax was due till the date of its payment.
(12) Any authority not below the rank of Deputy Commissioner may serve a 
notice, either before or during the course of any proceedings under this Act, requiring the
operator to furnish such details relating to—
(a) supplies of goods or services or both effected through such operator during 
any period; or
(b) stock of goods held by the suppliers making supplies through such operator 
in the godowns or warehouses, by whatever name called, managed by such operator and
declared as additional places of business by such suppliers, as may be specified in the 
notice.
(13) Every operator on whom a notice has been served under sub-section (12) 
shall furnish the required information within fifteen working days of the date of service of 
such notice.
(14) Any person who fails to furnish the information required by the notice 
served under sub-section (12) shall, without prejudice to any action that may be taken 
under section 122, be liable to a penalty which may extend to twenty-five thousand
rupees.
Explanation.—For the purposes of this section, the expression ―concerned
supplier‖ shall mean the supplier of goods or services or both making supplies through 
the operator.

53. Transfer of input tax credit.— On utilisation of input tax credit availed 
under this Act for payment of tax dues under the Integrated Goods and Services Tax Act 
in accordance with the provisions of sub-section (5) of section 49, as reflected in the valid
return furnished under sub-section (1) of section 39, the amount collected as central tax
shall stand reduced by an amount equal to such credit so utilised and the Central 
Government shall transfer an amount equal to the amount so reduced from the central tax
account to the integrated tax account in such manner and within such time as may be
prescribed.

53A. Transfer of certain amounts.— Where any amount has been transferred 
from the electronic cash ledger under this Act to the electronic cash ledger under the 
State Goods and Services Tax Act or the Union territory Goods and Services Tax Act, 
the Government shall, transfer to the State tax account or the Union territory tax 
account, an amount equal to the amount transferred from the electronic cash ledger, in 
such manner and within such time as may be prescribed.

74 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020.

54. Refund of tax.— (1) Any person claiming refund of any tax and interest, if
any, paid on such tax or any other amount paid by him, may make an application before
the expiry of two years from the relevant date in such form and manner as may be
prescribed:
Provided that a registered person, claiming refund of any balance in the electronic 
cash ledger in accordance with the provisions of sub-section (6) of section 49, may claim 
such refund in the return furnished under section 39 in such manner as may be 
prescribed.
(2) A specialised agency of the United Nations Organisation or any Multilateral
Financial Institution and Organisation notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person or
class of persons, as notified under section 55, entitled to a refund of tax paid by it on inward
supplies of goods or services or both, may make an application for such refund, in such 
form and manner as may be prescribed, before the expiry of six months from the last day
of the quarter in which such supply was received.
(3) Subject to the provisions of sub-section (10), a registered person may claim
refund of any unutilised input tax credit at the end of any tax period:
Provided that no refund of unutilised input tax credit shall be allowed in cases 
other than––
(i) zero rated supplies made without payment of tax;
(ii) where the credit has accumulated on account of rate of tax on inputs being 
higher than the rate of tax on output supplies (other than nil rated or fully exempt 
supplies), except supplies of goods or services or both as may be notified by the 
Government on the recommendations of the Council:
Provided further that no refund of unutilised input tax credit shall be allowed in 
cases where the goods exported out of India are subjected to export duty:
Provided also that no refund of input tax credit shall be allowed, if the supplier of
goods or services or both avails of drawback in respect of central tax or claims refund of 
the integrated tax paid on such supplies.
(4) The application shall be accompanied by—
(a) such documentary evidence as may be prescribed to establish that a refund 
is due to the applicant; and
(b) such documentary or other evidence (including the documents referred to in 
section 33) as the applicant may furnish to establish that the amount of tax and interest, if 
any, paid on such tax or any other amount paid in relation to which such refund is 
claimed was collected from, or paid by, him and the incidence of such tax and interest had
not been passed on to any other person:
Provided that where the amount claimed as refund is less than two lakh rupees, it 
shall not be necessary for the applicant to furnish any documentary and other evidences
but he may file a declaration, based on the documentary or other evidences available with
him, certifying that the incidence of such tax and interest had not been passed on to any 
other person.
(5) If, on receipt of any such application, the proper officer is satisfied that the
whole or part of the amount claimed as refund is refundable, he may make an order
accordingly and the amount so determined shall be credited to the Fund referred to in
section 57.
(6) Notwithstanding anything contained in sub-section (5), the proper officer 
may, in the case of any claim for refund on account of zero-rated supply of goods or 
services or both made by registered persons, other than such category of registered 
persons as may be notified by the Government on the recommendations of the Council, 
refund on a provisional basis, ninety per cent. of the total amount so claimed, excluding
the amount of input tax credit provisionally accepted, in such manner and subject to such 
conditions, limitations and safeguards as may be prescribed and thereafter make an order 
under sub-section (5) for final settlement of the refund claim after due verification of 
documents furnished by the applicant.
(7) The proper officershall issue the order undersub-section (5) within sixty days
from the date of receipt of application complete in allrespects.
(8) Notwithstanding anything contained in sub-section (5), the refundable 
amount shall, instead of being credited to the Fund, be paid to the applicant, if such 
amount is relatable to—
(a) [refund of tax paid on export of goods or services or both or on inputs or 
input services used in making such exports;]75
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, either wholly or partially, 
and for which invoice has not been issued, or where a refund voucher has beenissued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other amount paid by the applicant, if he 
had not passed on the incidence of such tax and interest to any other person; or
(f) the tax or interest borne by such other class of applicants as the Government 
may, on the recommendations of the Council, by notification, specify.
[(8A) The Government may disburse the refund of the State tax in such manner 
as may be prescribed.]76
(9) Notwithstanding anything to the contrary contained in any judgment, 
decree, order or direction of the Appellate Tribunal or any court or in any other provisions
of this Act or the rules made thereunder or in any other law for the time being in force, no
refund shall be made except in accordance with the provisions of sub-section (8).
(10) Where any refund is due under sub-section (3) to a registered person who 
has defaulted in furnishing any return or who is required to pay any tax, interest or penalty,
which has not been stayed by any court, Tribunal or Appellate Authority by the specified
date, the proper officermay—
(a) withhold payment of refund due until the said person has furnished the 
 
75 Substituted for ―zero-rated supplies‖ by The Central Goods and Services Tax (Amendment) Act, 2018 
(No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019. 
76 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st September, 
2019 vide Notification No. 39/2019 – Central Tax dt. 31st August, 2019.

return or paid the tax, interest or penalty, as the case may be;
(b) deduct from the refund due, any tax, interest, penalty, fee or any other
amount which the taxable person is liable to pay but which remains unpaid under this Act
or under the existing law.
Explanation.––For the purposes of this sub-section, the expression ―specified date‖ 
shall mean the last date for filing an appeal under this Act.
(11) Where an order giving rise to a refund is the subject matter of an appeal or
further proceedings or where any other proceedings under this Act is pending and the
Commissioner is of the opinion that grant of such refund is likely to adversely affect the
revenue in the said appeal or other proceedings on account of malfeasance or fraud 
committed, he may, after giving the taxable person an opportunity of being heard,
withhold the refund tillsuch time as he maydetermine.
(12) Where a refund is withheld under sub-section (11), the taxable person shall, 
notwithstanding anything contained in section 56, be entitled to interest at such rate not 
exceeding six per cent. as may be notified on the recommendations of the Council, if as a 
result of the appeal or further proceedings he becomes entitled to refund.
(13) Notwithstanding anything to the contrary contained in this section, the 
amount of advance tax deposited by a casual taxable person or a non-resident taxable
person under sub-section (2) of section 27, shall not be refunded unless such person has, in
respect of the entire period for which the certificate of registration granted to him had
remained in force, furnished all the returns required under section 39.
(14) Notwithstanding anything contained in this section, no refund under subsection (5) or sub-section (6) shall be paid to an applicant, if the amount is less than one 
thousand rupees.
Explanation.—For the purposes of this section,––
(1) ―refund‖ includes refund of tax paid on zero-rated supplies of goods or 
services or both or on inputs or input services used in making such zero-rated supplies, or 
refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised 
input tax credit as provided under sub-section (3).
(2) ―relevant date‖ means—
(a) in the case of goods exported out of India where a refund of tax paid is 
available in respect of goods themselves or, as the case may be, the inputs or input
services used in such goods,––
(i) if the goods are exported by sea or air, the date on which the ship or the 
aircraft in which such goods are loaded, leaves India; or
(ii) if the goods are exported by land, the date on which such goods pass the 
frontier; or
(iii) if the goods are exported by post, the date of despatch of goods by the Post 
Office concerned to a place outside India;
(b) in the case of supply of goods regarded as deemed exports where a refund 
of tax paid is available in respect of the goods, the date on which the return relating to 
such deemed exports is furnished;
(c) in the case of services exported out of India where a refund of tax paid is 
available in respect of services themselves or, as the case may be, the inputs or input
services used in such services, the date of––
(i) receipt of payment in convertible foreign exchange [or in Indian rupees 
wherever permitted by the Reserve Bank of India]77, where the supply ofservices had been
completed priorto the receipt ofsuch payment; or
(ii) issue of invoice, where payment for the services had been received in advance 
prior to the date of issue of the invoice;
(d) in case where the tax becomes refundable as a consequence of judgment, 
decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the
date of communication of such judgment, decree, order or direction;
(e) [in the case of refund of unutilised input tax credit under clause (ii) of 
the first proviso to sub-section (3), the due date for furnishing of return under section 39 
 
77 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019.
for the period in which such claim for refund arises;]78
(f) in the case where tax is paid provisionally under this Act or the rules made
thereunder, the date of adjustment of tax after the final assessment thereof;
(g) in the case of a person, other than the supplier, the date of receipt of goods
or services or both by such person; and
(h) in any other case, the date of payment of tax.

55. Refund in certain cases.— The Government may, on the 
recommendations of the Council, by notification, specify any specialised agency of the
United Nations Organisation or any Multilateral Financial Institution and Organisation
notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or 
Embassy of foreign countries and any other person or class of persons as may be specified
in this behalf, who shall, subject to such conditions and restrictions as may be prescribed, be
entitled to claim a refund of taxes paid on the notified supplies of goods or services or 
both received by them.

56. Interest on delayed refunds.— If any tax ordered to be refunded under 
sub-section (5) of section 54 to any applicant is not refunded within sixty days from the
date of receipt of application under sub- section (1) of that section, interest at such rate not
exceeding six per cent. as may be specified in the notification issued by the Government on
the recommendations of the Council shall be payable in respect of such refund from the 
date immediately after the expiry of sixty days from the date of receipt of application 
under the said sub-section till the date of refund of such tax:
Provided that where any claim of refund arises from an order passed by an
adjudicating authority or Appellate Authority or Appellate Tribunal or court which has
attained finality and the same is not refunded within sixty days from the date of receipt of
application filed consequent to such order, interest at such rate not exceeding nine per 
cent. as may be notified by the Government on the recommendations of the Council
shall be payable in respect of such refund from the date immediately after the expiry of
 
78 Substituted for ―(e) in the case of refund of unutilised input tax credit under sub-section (3), the end 
of the financial year in which such claim for refund arises;‖ by The Central Goods and Services Tax 
(Amendment) Act, 2018 (No. 31 of 2018) – Brought into force w.e.f. 01st February, 2019. 
sixty days from the date of receipt of application till the date of refund.
Explanation.––For the purposes of this section, where any order of refund is made
by an Appellate Authority, Appellate Tribunal or any court against an order of the proper 
officer under sub-section (5) of section 54, the order passed by the Appellate Authority, 
Appellate Tribunal or by the court shall be deemed to be an order passed under the said 
sub-section (5).

57. Consumer Welfare Fund.— The Government shall constitute a Fund, to
be called the Consumer Welfare Fund and there shall be credited to the Fund,—
(a) the amount referred to in sub-section (5) of section 54;
(b) any income from investment of the amount credited to the Fund; and
(c) such other monies received by it, in such manner as may be prescribed.

58. Utilisation of Fund.— (1) All sums credited to the Fund shall be utilised 
by the Government for the welfare of the consumers in such manner as may be
prescribed.
(2) The Government or the authority specified by it shall maintain proper and
separate account and other relevant records in relation to the Fund and prepare an 
annualstatement of accounts in such form as may be prescribed in consultation with the 
Comptroller and Auditor-General ofIndia.
 

59. Self-assessment.— Every registered person shall self-assess the taxes 
payable under this Act and furnish a return for each tax period as specified under section
39.

60. Provisional assessment.— (1) Subject to the provisions of sub-section (2),
where the taxable person is unable to determine the value of goods or services or both or 
determine the rate of tax applicable thereto, he may request the proper officer in writing
giving reasons for payment of tax on a provisional basis and the proper officer shall pass 
an order, within a period not later than ninety days from the date of receipt of such
request, allowing payment of tax on provisional basis at such rate or on such value as may 
be specified by him.
(2) The payment of tax on provisional basis may be allowed, if the taxable 
person executes a bond in such form as may be prescribed, and with such surety or
security as the proper officer may deem fit, binding the taxable person for payment of the
difference between the amount of tax as may be finally assessed and the amount of tax
provisionally assessed.
(3) The proper officer shall, within a period not exceeding six months from the
date of the communication of the order issued under sub-section (1), pass the final 
assessment order after taking into account such information as may be required for 
finalizing the assessment:
Provided that the period specified in this sub-section may, on sufficient cause 
being shown and for reasons to be recorded in writing, be extended by the Joint
Commissioner or Additional Commissioner for a further period not exceeding six 
months and by the Commissioner for such further period not exceeding four years.
(4) The registered person shall be liable to pay interest on any tax payable on 
the supply of goods or services or both under provisional assessment but not paid on the 
due date specified under sub-section (7) of section 39 or the rules made thereunder, at the 
rate specified under sub-section (1) of section 50, from the first day after the due date of
payment of tax in respect of the said supply of goods or services or both till the date
of actual payment, whether such amount is paid before or after the issuance of order for 
final assessment.
(5) Where the registered person is entitled to a refund consequent to the order
of final assessment under sub-section (3), subject to the provisions of sub-section (8) of
section 54, interest shall be paid on such refund as provided in section 56.

61. Scrutiny of returns.— (1) The proper officer may scrutinize the return and
related particulars furnished by the registered person to verify the correctness of the return
and inform him of the discrepancies noticed, if any, in such manner as may be prescribed
and seek his explanation thereto.
(2) In case the explanation is found acceptable, the registered person shall be
informed accordingly and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of thirty 
days of being informed by the proper officer or such further period as may be permitted
by him or where the registered person, after accepting the discrepancies, fails to take the 
corrective measure in his return for the month in which the discrepancy is accepted, the
proper officer may initiate appropriate action including those under section 65 or section
66 or section 67, or proceed to determine the tax and other dues under section 73 or 
section74.

62. Assessment of non-filers of returns.— (1) Notwithstanding anything to the
contrary contained in section 73 or section 74, where a registered person fails to furnish the
return under section 39 or section 45, even after the service of a notice under section 46, 
the proper officer may proceed to assess the tax liability of the said person to the best of 
his judgement taking into account all the relevant material which is available or which he
has gathered and issue an assessment order within a period of five years from the date 
specified under section 44 for furnishing of the annual return for the financial year to
which the tax not paid relates.
(2) Where the registered person furnishes a valid return within thirty days of 
the service of the assessment order under sub-section (1), the said assessment order shall 
be deemed to have been withdrawn but the liability for payment of interest under sub
section (1) of section 50 or for payment of late fee under section 47 shall continue.

63. Assessment of unregistered persons.— Notwithstanding anything to the 
contrary contained in section 73 or section 74, where a taxable person fails to obtain
registration even though liable to do so or whose registration has been cancelled under
sub-section (2) of section 29 but who was liable to pay tax, the proper officer may proceed 
to assess the tax liability of such taxable person to the best of his judgment for the 
relevant tax periods and issue an assessment order within a period of five years from the 
date specified under section 44 for furnishing of the annual return for the financial year to
which the tax not paid relates:
Provided that no such assessment order shall be passed without giving the person
an opportunity of being heard.

64. Summary assessment in certain special cases.— (1) The proper officer 
may, on any evidence showing a tax liability of a person coming to his notice, with the 
previous permission of Additional Commissioner or Joint Commissioner, proceed to
assess the tax liability of such person to protect the interest of revenue and issue an 
assessment order, if he has sufficient grounds to believe that any delay in doing so may 
adversely affect the interest of revenue:
Provided that where the taxable person to whom the liability pertains is not
ascertainable and such liability pertains to supply of goods, the person in charge of such 
goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax 
and any other amount due under this section.
(2) On an application made by the taxable person within thirty days from the
date of receipt of order passed under sub-section (1) or on his own motion, if the 
Additional Commissioner or Joint Commissioner considers that such order is erroneous, he
may withdraw such order and follow the procedure laid down in section 73 or section 74

65. Audit by tax authorities.— (1) The Commissioner or any officer
authorised by him, by way of a general or a specific order, may undertake audit of any
registered person for such period, at such frequency and in such manner as may be
prescribed.
(2) The officers referred to in sub-section (1) may conduct audit at the place of
business of the registered person or in their office.
(3) The registered person shall be informed by way of a notice not less than 
fifteen working days prior to the conduct of audit in such manner as may be prescribed.
(4) The audit under sub-section (1) shall be completed within a period of three
months from the date of commencement of the audit:
Provided that where the Commissioner is satisfied that audit in respect of such 
registered person cannot be completed within three months, he may, for the reasons to be 
recorded in writing, extend the period by a further period not exceeding six months.
Explanation.––For the purposes of this sub-section, the expression
―commencement of audit‖ shall mean the date on which the records and other documents,
called for by the tax authorities, are made available by the registered person or the actual 
institution of audit at the place of business, whichever is later.
(5) During the course of audit, the authorised officer may require the 
registered person,—
(i) to afford him the necessary facility to verify the books of account or other 
documents as he may require;
(ii) to furnish such information as he may require and render assistance for 
timely completion of the audit.
(6) On conclusion of audit, the proper officer shall, within thirty days, inform 
the registered person, whose records are audited, about the findings, his rights and
obligations and the reasons for such findings.
(7) Where the audit conducted under sub-section (1) results in detection of tax 
not paid or short paid or erroneously refunded, or input tax credit wrongly availed or
utilised, the proper officer may initiate action under section 73 or section 74

66. Special audit.— (1) If at any stage of scrutiny, inquiry, investigation or any 
other proceedings before him, any officer not below the rank of Assistant Commissioner,
having regard to the nature and complexity of the case and the interest of revenue, is of the
opinion that the value has not been correctly declared or the credit availed is not within the
normal limits, he may, with the prior approval of the Commissioner, direct such registered
person by a communication in writing to get his records including books of account
examined and audited by a chartered accountant or a cost accountant as may be 
nominated by the Commissioner.
(2) The chartered accountant or cost accountant so nominated shall, within the
period of ninety days, submit a report of such audit duly signed and certified by him to 
the said Assistant Commissioner mentioning therein such other particulars as may be
specified:
Provided that the Assistant Commissioner may, on an application made to him in
this behalf by the registered person or the chartered accountant or cost accountant or for 
any material and sufficient reason, extend the said period by a further period of ninety
days.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the 
accounts of the registered person have been audited under any other provisions of this
Act or any other law for the time being in force.
(4) The registered person shall be given an opportunity of being heard in 
respect of any material gathered on the basis of special audit under sub-section (1) which
is proposed to be used in any proceedings against him under this Act or the rules made
thereunder.
(5) The expenses of the examination and audit of records under sub-section (1),
including the remuneration of such chartered accountant or cost accountant, shall be
determined and paid by the Commissioner and such determination shall be final.
(6) Where the special audit conducted under sub-section (1) results in detection
of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or
utilised, the proper officer may initiate action under section 73 or section 74

67. Power of inspection, search and seizure.— (1) Where the proper officer,
not below the rank of Joint Commissioner, hasreasons to believe that––
(a) a taxable person has suppressed any transaction relating to supply of goods 
or services or both or the stock of goods in hand, or has claimed input tax credit in excess
of his entitlement under this Act or has indulged in contravention of any of the provisions 
of this Act or the rules made thereunder to evade tax under this Act; or
(b) any person engaged in the business of transporting goods or an owner or 
operator of a warehouse or a godown or any other place is keeping goods which have 
escaped payment of tax or has kept his accounts or goods in such a manner as is likely to 
cause evasion of tax payable under this Act,
he may authorise in writing any other officer of central tax to inspect any places of
business of the taxable person or the persons engaged in the business of transporting 
goods or the owner or the operator of warehouse or godown or any other place.
(2) Where the proper officer, not below the rank of Joint Commissioner, either
pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to 
believe that any goods liable to confiscation or any documents or books or things, which
in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted
in any place, he may authorise in writing any other officer of central tax to search and
seize or may himself search and seize such goods, documents or books or things:
Provided that where it is not practicable to seize any such goods, the proper officer,
or any officer authorised by him, may serve on the owner or the custodian of the goods an
order that he shall not remove, part with, or otherwise deal with the goods except with the
previous permission of such officer:
Provided further that the documents or books or things so seized shall be retained
by such officer only for so long as may be necessary for their examination and for any
inquiry or proceedings under this Act.
(3) The documents, books or things referred to in sub-section (2) or any other
documents, books or things produced by a taxable person or any other person, which
have not been relied upon for the issue of notice under this Act or the rules made
thereunder, shall be returned to such person within a period not exceeding thirty days of
the issue of the said notice.
(4) The officer authorised under sub-section (2) shall have the power to seal or
break open the door of any premises or to break open any almirah, electronic devices, box,
receptacle in which any goods, accounts, registers or documents of the person are 
suspected to be concealed, where access to such premises, almirah, electronic devices, box
or receptacle is denied.
(5) The person from whose custody any documents are seized under subsection (2) shall be entitled to make copies thereof or take extracts therefrom in the
presence of an
authorised officer at such place and time as such officer may indicate in this behalf
except where making such copies or taking such extracts may, in the opinion of the proper
officer, prejudicially affect the investigation.
(6) The goods so seized under sub-section (2) shall be released, on a 
provisional basis, upon execution of a bond and furnishing of a security, in such manner 
and of such quantum, respectively, as may be prescribed or on payment of applicable tax, 
interest and penalty payable, as the case may be.
(7) Where any goods are seized under sub-section (2) and no notice in respect
thereof is given within six months of the seizure of the goods, the goods shall be returned 
to the person from whose possession they were seized:
Provided that the period of six months may, on sufficient cause being shown, be 
extended by the proper officer for a further period not exceeding six months.
(8) The Government may, having regard to the perishable or hazardous nature
of any goods, depreciation in the value of the goods with the passage of time, constraints 
of storage space for the goods or any other relevant considerations, by notification, 
specify the goods or class of goods which shall, as soon as may be after its seizure 
under sub-section (2), be disposed of by the proper officer in such manner as may be
prescribed.
(9) Where any goods, being goods specified under sub-section (8), have been
seized by a proper officer, or any officer authorised by him under sub-section (2), he shall
prepare an inventory of such goods in such manner as may be prescribed.
(10) The provisions of the Code of Criminal Procedure, 1973, relating to search 
and seizure, shall, so far as may be, apply to search and seizure under this section subject
to the modification that sub-section (5) of section 165 of the said Code shall have effect as if
for the word ―Magistrate‖, wherever it occurs, the word ―Commissioner‖ were
substituted.
(11) Where the proper officer has reasons to believe that any person has evaded
or is attempting to evade the payment of any tax, he may, for reasons to be recorded in 
writing, seize the accounts, registers or documents of such person produced before him 
and shall grant a receipt for the same, and shall retain the same for so long as may be 
necessary in connection with any proceedings under this Act or the rules made thereunder
for prosecution.
(12) The Commissioner or an officer authorised by him may cause purchase of 
any goods or services or both by any person authorised by him from the business 
premises of any taxable person, to check the issue of tax invoices or bills of supply by 
such taxable person, and on return of goods so purchased by such officer, such taxable 
person or any person in charge of the business premises shall refund the amount so paid 
towards the goods after cancelling any tax invoice or bill of supply issued earlier.

68. Inspection of goods in movement.— (1) The Government may require the 
person in charge of a conveyance carrying any consignment of goods of value exceeding
such amount as may be specified to carry with him such documents and such devices as 
may be prescribed.
(2) The details of documents required to be carried under sub-section (1) shall 
be validated in such manner as may be prescribed.
(3) Where any conveyance referred to in sub-section (1) is intercepted by the
proper officer at any place, he may require the person in charge of the said conveyance to
produce the documents prescribed under the said sub-section and devices for verification, 
and the said person shall be liable to produce the documents and devices and also allow the
inspection of goods.

69. Power to arrest.— (1) Where the Commissioner has reasons to believe 
that a person has committed any offence specified in clause (a) or clause (b) or clause 
(c) or clause (d) of sub-section (1) of section 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 such person.
(2) Where a person is arrested under sub-section (1) for an offence specified
under sub- section (5) of section 132, the officer authorised to arrest the person shall inform 
such person of the grounds of arrest and produce him before a Magistrate within twentyfour hours.
(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 sub-section (4) of section 132, he shall be admitted to bail or in default of bail, 
forwarded to the custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner 
or the Assistant Commissioner shall, for the purpose of releasing an arrested person on 
bail or otherwise, have the same powers and be subject to the same provisions as an 
officer-in-charge of a police station.

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 whose
attendance he considers necessary either to give evidence or to produce a document or
any other thing 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.
(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a
―judicial proceedings‖ within the meaning of section 193 and section 228 of the Indian
Penal Code.

71. Access to business premises.— (1) Any officer under this Act, authorised
by the proper officer not below the rank of Joint Commissioner, shall have access to any
place of business of a registered person to inspect books of account, documents, 
computers, computer programs, computer software whether installed in a computer or 
otherwise and such other things as he may require and which may be available at such 
place, for the purposes of carrying out any audit, scrutiny, verification and checks as may 
be necessary to safeguard the interest of revenue.
(2) Every person in charge of place referred to in sub-section (1) shall, on 
demand, make available to the officer authorised under sub-section (1) or the audit party
deputed by the proper officer or a cost accountant or chartered accountant nominated 
under section 66—
(i) such records as prepared or maintained by the registered person and declared 
to the proper officer in such manner as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial accounts, duly audited, wherever required;
(iv) cost audit report, if any, under section 148 of the Companies Act, 2013;
(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 the chartered accountant or cost
accountant within a period not exceeding fifteen working days from the day when such
demand is made, or such further period as may be allowed by the said officer or the audit
party orthe chartered accountant or cost accountant.

72. Officers to assist proper officers.— (1) All officers of Police, Railways, 
Customs, and those officers engaged in the collection of land revenue, including village 
officers, officers of State tax and officers of Union territory tax shall assist the proper
officers in the implementation of this Act.
(2) The Government may, by notification, empower and require any other 
class of officers to assist the proper officers in the implementation of this Act when called
upon to do so by the Commissioner.
 

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.— (1) Where it appears to the proper 
officer that any tax has not been paid or short paid or erroneously refunded, or where
input tax credit has been wrongly availed or utilised for any reason, other than the reason
of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve
notice on the person chargeable with tax which has not been so paid or which has been so
short paid or to whom the refund has erroneously been made, or who has wrongly availed
or utilised input tax credit, requiring him to show cause as to why he should not pay the 
amount specified in the notice along with interest payable thereon under section 50 and a 
penalty leviable under the provisions of this Act or the rules made thereunder.
(2) The proper officer shall issue the notice under sub-section (1) at least three
months prior 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 
proper officer may serve a statement, containing the details of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilised for such periods other 
than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on 
such person under sub-section (1), subject to the condition that the grounds relied upon
for such tax periods other than those covered under sub-section (1) are the same as are
mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under subsection (1) or, as the case may be, the statement under sub-section (3), pay the amount of
tax along with interest payable thereon under section 50 on the basis of his own
ascertainment of such tax or the tax as ascertained by the proper officer and inform the
proper officerin writing ofsuch payment.
(6) The proper officer, on receipt of such information, shall not serve any notice
under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect
of the tax so paid or any penalty payable under the provisions of 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 as provided for in sub-section (1) in respect of such amount which falls short of the 
amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) or sub-section 
(3) pays the said tax along with interest payable under section 50 within thirty days of
issue of show cause notice, no penalty shall be payable and all proceedings in respect of 
the said notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made 
by person chargeable with tax, determine the amount of tax, interest and a penalty
equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from 
such person and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within three
years from the due date for furnishing of annual return for the financial year to which the
tax not paid or short paid or input tax credit wrongly availed or utilised relates to or 
within three years from the date of erroneous refund.
(11) Notwithstanding anything contained in sub-section (6) or sub-section (8),
penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any
amount collected as tax has not been paid within a period of thirty days from the due date
of payment of such tax.

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 willfulmisstatement or suppression of facts.— (1) Where it appears to the proper officer that 
any tax has not been paid or short paid or erroneously refunded or where input tax credit
has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or
suppression of facts to evade tax, he shall serve notice on the person chargeable with tax
which has not been so paid or which has been so short paid or to whom the refund has
erroneously been made, or who has wrongly availed or utilised input tax credit, requiring 
him to show cause as to why he should not pay the amount specified in the notice along 
with interest payable thereon under 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
months prior 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 
proper officer may serve a statement, containing the details of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilised for such periods other 
than those covered under sub-section (1), on the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be service 
of notice under sub-section (1) of section 73, subject to the condition that the grounds 
relied upon in the said statement, except the ground of fraud, or any wilful-misstatement 
or suppression of facts to evade tax, for periods other than those covered under subsection (1) are the same as are mentioned in the earliernotice.
(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 
penalty equivalent to fifteen per cent. of such tax on the basis of his own ascertainment of 
such tax or the tax as ascertained by the proper officer and inform the proper officer in
writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any notice
under sub-section (1), in respect of the tax so paid or any penalty payable under the
provisions of this Act or the rules made thereunder.
(7) 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 as provided for in sub-section (1) in respect of such amount which falls short of the 
amount actually payable.
(8) Where any person chargeable with tax under sub-section (1) pays the said 
tax along with interest payable under section 50 and a penalty equivalent to twenty-five per
cent. of such tax within thirty days of issue of the notice, all proceedings in respect of the 
said notice shall be deemed to be concluded.
(9) The proper officer shall, after considering the representation, if any, made 
by the person chargeable with tax, determine the amount of tax, interest and penalty due
from such person and issue an order.
(10) The proper officer shall issue the order under sub-section (9) within a 
periodof five yearsfrom the due date for furnishing of annual return for the financial year to
which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to
or within five years from the date of erroneous refund.
(11) Where any person served with an order issued under sub-section (9) pays
the tax along with interest payable thereon under section 50 and a penalty equivalent to 
fifty per cent. of such tax within thirty days of communication of the order, all proceedings
in respect of the said notice shall be deemed to be concluded.
Explanation 1.—For the purposes of section 73 and this section,—
(i) the expression ―all proceedings in respect of the said notice‖ shall not 
include proceedings under section 132;
(ii) where the notice under the same proceedings is issued to the main person 
liable to pay tax and some other persons, and such proceedings against the main person 
have been concluded under section 73 or section 74, the proceedings against all the 
persons liable to pay penalty under sections 122, 125, 129 and 130 are deemed to be
concluded.
Explanation 2.––For the purposes of this Act, the expression ―suppression‖ shall
mean non-declaration of facts or information which a taxable person is required to declare
in the return, statement, report or any other document furnished under this Act or the rules
made thereunder, or failure to furnish any information on being asked for, in writing, by
the proper officer.

75. 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 or Appellate Tribunal, 
the period of such stay shall be excluded in computing the period specified in sub-section
(2) and (10) ofsection 73 orsub-sections(2) and (10) ofsection 74, as the case may be.
(2) Where any Appellate Authority or Appellate Tribunal or court concludes
that the notice issued under sub-section (1) of section 74 is not sustainable for the reason 
that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has
not been established against the person to whom the notice was issued, the proper officer 
shall determine the tax payable by such person, deeming as if the notice were issued 
under sub-section (1) of section 73.
(3) Where any order is required to be issued in pursuance of the direction of 
the Appellate Authority or Appellate Tribunal or a court, such order shall be issued within
two years from the date of communication of the said direction.
(4) An opportunity of hearing shall be granted where a request is received in
writing from the person chargeable with tax or penalty, or where any adverse decision is
contemplated against such person.
(5) The proper officer shall, if sufficient cause is shown by the person chargeable
with tax, grant time to the said person and adjourn the hearing for reasons to be recorded 
in writing:
Provided that no such adjournment shall be granted for more than three times to a 
person during the proceedings.
(6) The proper officer, in his order, shall set out the relevant facts and the basis
of his decision.
(7) The amount of tax, interest and penalty demanded in the ordershall not be in
excess of the amount specified in the notice and no demand shall be confirmed on the
grounds other than the grounds specified in the notice.
(8) Where the Appellate Authority or Appellate Tribunal or court modifies the
amount of tax determined by the proper officer, the amount of interest and penalty shall 
stand modified accordingly, taking into account the amount of tax so modified.
(9) The interest on the tax short paid or not paid shall be payable whether or 
not specified in the order determining the tax liability.
(10) The adjudication proceedings shall be deemed to be concluded, if the order
is not issued within three years as provided for in sub-section (10) of section 73 or within 
five years as provided for in sub-section (10) of section 74.
(11) An issue on which the Appellate Authority or the Appellate Tribunal or the
High Court has given its decision which is prejudicial to the interest of revenue in some 
other proceedings and an appeal to the Appellate Tribunal or the High Court or the 
Supreme Court against such decision of the Appellate Authority or the Appellate 
Tribunal or the High Court is pending, the period spent between the date of the decision 
of the Appellate
Authority and that of the Appellate Tribunal or the date of decision of the Appellate
Tribunal and that of the High Court or the date of the decision of the High Court and 
that of the Supreme Court shall be excluded in computing the period referred to in subsection (10) of section 73 or sub-section (10) of section 74 where proceedings are initiated
by way of issue of a show cause notice under the said sections.
(12) Notwithstanding anything contained in section 73 or section 74, where any
amount of self-assessed tax in accordance with a return furnished under section 39
remains unpaid, either wholly or partly, or any amount of interest payable on such tax 
remains unpaid, the same shall be recovered under the provisions of section 79.
(13) Where any penalty is imposed under section 73 or section 74, no penalty
for the same act or omission shall be imposed on the same person under any other
provision of this Act.

76. Tax collected but not paid to Government.— (1) Notwithstanding 
anything to the contrary contained in any order or direction of any Appellate Authority
or Appellate Tribunal or court or in any other provisions of this Act or the rules made
thereunder or any other law for the time being in force, every person who has collected
from any other person any amount as representing the tax under this Act, and has not paid
the said amount to the Government, shall forthwith pay the said amount to the
Government, irrespective of whether the supplies in respect of which such amount was 
collected are taxable or not.
(2) 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 pay such amount a notice requiring him to show cause as to why the said amount
as specified in the notice, should not be paid by him to the Government and why a 
penalty equivalent to the amount specified in the notice should not be imposed on him 
under the provisions of this Act.
(3) The proper officer shall, after considering the representation, if any, made 
by the person on whom the notice is served under sub-section (2), determine the amount
due from such person and thereupon such person shall pay the amount so determined.
(4) The person referred to in sub-section (1) shall in addition to paying the 
amount referred to in sub-section (1) or sub-section (3) also be liable to pay interest 
thereon at the rate specified under section 50 from the date such amount was collected by
him to the date such amount is paid by him to the Government.
(5) An opportunity of hearing shall be granted where a request is received in
writing from the person to whom the notice was issued to show cause.
(6) The proper officer shall issue an order within one year from the date of issue
of the notice.
(7) Where the issuance of order is stayed by an order of the court or Appellate
Tribunal, the period of such stay shall be excluded in computing the period of one year.
(8) The proper officer, in his order, shall set out the relevant facts and the basis
of his decision.
(9) The amount paid to the Government under sub-section (1) or sub-section (3)
shall be adjusted against the tax payable, if any, by the person in relation to the supplies
referred to in sub-section (1).
(10) Where any surplus is left after the adjustment under sub-section (9), the
amount of such surplus shall either be credited to the Fund or refunded to the person who
has borne the incidence of such amount.
(11) The person who has borne the incidence of the amount, may apply for the
refund of the same in accordance with the provisions of section 54.

77. 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 an intra-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 as may be prescribed.
(2) A registered person who has paid integrated tax on a transaction considered
by him to be an inter-State supply, but which is subsequently held to be an intra-State
supply, shall not be required to pay any interest on the amount of central tax and State tax
or, as the case may be, the Central tax and the Union territory tax payable.

78. Initiation of recovery proceedings.— Any amount payable by a taxable 
person in pursuance of an order passed under this Act shall be paid by such person within
a period of three months from the date of service of such order failing which recovery 
proceedings shall be initiated:
Provided that where the proper officer considers it expedient in the interest of
revenue, he may, for reasons to be recorded in writing, require the said taxable person to
make such payment within such period less than a period of three months as may be
specified by him.

79. Recovery of tax.— (1) Where any amount payable by a person to the 
Government under any of the provisions of this Act or the rules made thereunder is not 
paid, the proper officer shall proceed to recover the amount by one or more of the
following modes, namely:––
(a) the proper officer may deduct or may require any other specified officer to 
deduct the amount so payable from any money owing to such person which may be 
under the control of the proper officer or such other specified officer;
(b) the proper officer may recover or may require any other specified officer to 
recover the amount so payable by detaining and selling any goods belonging to such 
person which are under the control of the proper officer orsuch otherspecified officer;
(c) (i)the proper officer may, by a notice in writing,require any other person from 
whom money is due or may become due to such person or who holds or may 
subsequently hold money for or on account of such person, to pay to the Government
either forthwith upon the money becoming due or being held, or within the time specified in
the notice not being before the money becomes due or is held, so much of the money as is 
sufficient to pay the amount due from such person or the whole of the money when it is 
equal to or less than that amount;
(ii) every person to whom the notice is issued under sub-clause (i) shall be 
bound to comply with such notice, and in particular, where any such notice is issued to a 
post office, banking company or an insurer, it shall not be necessary to produce any pass 
book, deposit receipt, policy or any other document for the purpose of any entry, 
endorsement or the like being made before payment is made, notwithstanding any rule, 
practice or requirement to the contrary;
(iii) in case the person to whom a notice under sub-clause (i) has been issued, 
fails to make the payment in pursuance thereof to the Government, he shall be deemed to
be a defaulter in respect of the amountspecified in the notice and all the consequences of this
Act or the rules made thereunder shall follow;
(iv) the officer issuing a notice under sub-clause (i) may, at any time, amend or 
revoke such notice or extend the time for making any payment in pursuance of the 
notice;
(v) any person making any payment in compliance with a notice issued under 
sub-clause (i) shall be deemed to have made the payment under the authority of the 
person in default and such payment being credited to the Governmentshall be deemed
to constitute a good and sufficient discharge of the liability of such person to the 
person in default to the extent of the amount specified in the receipt;
(vi) any person discharging any liability to the person in default after service on 
him of the notice issued under sub-clause (i) shall be personally liable to the Government to
the extent of the liability discharged or to the extent of the liability of the person in default 
for tax, interest and penalty, whichever isless;
(vii) where a person on whom a notice is served under sub-clause (i) proves to 
the satisfaction of the officer issuing the notice that the money demanded or any part 
thereof was not due to the person in default or that he did not hold any money for or on
account of the person in default, at the time the notice was served on him, nor is the money 
demanded or any part thereof, likely to become due to the said person or be held for or 
on account of such person, nothing contained in this section shall be deemed to require 
the person on whom the notice has been served to pay to the Government any such 
money or part thereof;
(d) the proper officer may, in accordance with the rules to be made in this behalf, 
distrain any movable or immovable property belonging to or under the control of such 
person, and detain the same until the amount payable is paid; and in case, any part of the 
said amount payable or of the cost of the distress or keeping of the property, remains
unpaid for a period of thirty days next after any such distress, may cause the said property 
to be sold and with the proceeds of such sale, may satisfy the amount payable and the 
costs including cost of sale remaining unpaid and shall render the surplus amount, if any, 
to such person;
(e) the proper officer may prepare a certificate signed by him specifying the 
amount due from such person and send it to the Collector of the district in which such 
person owns any property or resides or carries on his business or to any officer authorised
by the Government and the said Collector or the said officer, on receipt of such certificate, 
shall proceed to recover from such person the amount specified thereunder as if it were an
arrear of land revenue;
(f) Notwithstanding anything contained in the Code of Criminal Procedure, 
1973, the proper officer may file an application to the appropriate Magistrate and such 
Magistrate shall proceed to recover from such person the amount specified thereunder as if
it were a fine imposed by him.
(2) Where the terms of any bond or other instrument executed under this Act 
or any rules or regulations made thereunder provide that any amount due under such 
instrument may be recovered in the manner laid down in sub-section (1), the amount 
may, without prejudice to any other mode of recovery, be recovered in accordance with
the provisions of that sub-section.
(3) Where any amount of tax, interest or penalty is payable by a person to the 
Government under any of the provisions of this Act or the rules made thereunder and
which remains unpaid, the proper officer of State tax or Union territory tax, during the 
course of recovery of said tax arrears, may recover the amount from the said person as if 
it were an arrear of State tax or Union territory tax and credit the amount so recovered to
the account of the Government.
(4) Where the amount recovered under sub-section (3) is less than the amount
due to the Central Government and State Government, the amount to be credited to the
account of the respective Governments shall be in proportion to the amount due to each 
such Government.
[Explanation.––For the purposes of this section, the word person shall include 
―distinct persons‖ as referred to in sub-section (4) or, as the case may be, sub-section (5) 
of section 25.]7 

80. Payment of tax and other amount in instalments.— On an application
filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, 
extend the time for payment or allow payment of any amount due under 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 of interest under 
section 50 and subject to such conditions and limitations as may be prescribed:
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 payable
forthwith and shall, without any further notice being served on the person, be liable for
recovery.

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 or parts 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 of any other person with the 
intention of defrauding the Government revenue, such charge or transfer shall be void as
against any claim in respect of any tax or any other sum payable by the said person:
Provided that, such charge or transfer shall not be void if it is made for adequate 
consideration, in good faith and without notice of the pendency of such proceedings
under this Act or without notice of such tax or other sum payable by the said person, or 
with the previous permission of the proper officer

 
79 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought into 
force w.e.f. 01st February, 2019. 
 

82. Tax to be first charge on property.— Notwithstanding anything to the
contrary contained in any law for the time being in force, save as otherwise provided in 
the Insolvency and Bankruptcy Code, 2016, any amount payable by a taxable person or 
any other person on account of tax, interest or penalty which he is liable to pay to the
Government shall be a first charge on the property of such taxable person or such person

83. Provisional attachment to protect revenue in certain cases.— (1) Where
during the pendency of any proceedings under section 62 or section 63 or section 64 or
section 67 or section 73 or section 74, the Commissioner is of the opinion that for the 
purpose of protecting the interest of the Government revenue, it is necessary 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 be prescribed.
(2) Every such provisional attachment shall cease to have effect after the expiry
of a period of one year from the date of the order made under sub-section (1).

84. Continuation and validation of certain recovery proceedings.— Where 
any notice of demand in respect of any tax, penalty, interest or any other amount payable
under this Act, (hereafter in this section referred to as ―Government dues‖), is served upon
any taxable person or any other person and any appeal or revision application is filed or 
any other proceedings is initiated in respect of such Government dues, 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 person
another notice of demand in respect of the amount by which such Government dues are 
enhanced and any recovery proceedings in relation to such Government dues as are 
covered 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, be 
continued from the stage at which such proceedings stood immediately before such
disposal;
(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 a fresh notice of demand;
(ii) the Commissioner shall give intimation of such reduction to him and to the 
appropriate authority with whom recovery proceedings is pending;
(iii) any recovery proceedings initiated on the basis of the demand served upon
him prior to the disposal of such appeal, revision or other proceedings may be continued in
relation to the amount so reduced from the stage at which such proceedings stood 
immediately before such disposal.
 

85. Liability in case of transfer of business.— (1) Where a taxable person,
liable to pay tax under this Act, transfers his business in whole or in part, by sale, gift, 
lease, leave and license, hire or in any other manner whatsoever, the taxable person and
the person to whom the business is so transferred shall, jointly and severally, be liable
wholly or to the extent of such transfer, to pay the tax, interest or any penalty due from the
taxable person upto the time of such transfer, whether such tax, interest or penalty has
been determined before such transfer, but has remained unpaid or is determined
thereafter.
(2) Where the transferee of a business referred to in sub-section (1) carries on 
such business either in his own name or in some other name, he shall be liable to pay tax
on the supply of goods or services or both effected by him with effect from the date of such
transfer and shall, if he is a registered person under this Act, apply within the prescribed 
time for amendment of his certificate of registration.

86. Liability of agent and principal.— Where an agent supplies or receives
any taxable goods on behalf of his principal, such agent and his principal shall, jointly and 
severally, be liable to pay the tax payable on such goods under this Act.

87. Liability in case of amalgamation or merger of companies.— (1) When
two or more companies are amalgamated or merged in pursuance of an order of court or
of Tribunal or otherwise and the order is to take effect from a date earlier to the date of the
order and any two or more of such companies have supplied or received any goods or 
services or both to or from each other during the period commencing on the date from
which the order takes effect till the date of the order, then such transactions of supply and
receipt shall be included in the turnover of supply or receipt of the respective companies 
and they shall be liable to pay tax accordingly.
(2) Notwithstanding anything contained in the said order, for the purposes of
this Act, the said two or more companies shall be treated as distinct companies for the
period up to the date of the said order and the registration certificates of the said companies
shall be cancelled with effect from the date of the said order.
 

88. Liability in case of company in liquidation.— (1) When any company is
being wound up whether under the orders of a court or Tribunal 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 his appointment, give intimation of
his appointment to the Commissioner.
(2) The Commissioner shall, after making such inquiry or calling for such
information as he may deem fit, notify the liquidator within three months from the date 
on which he receives intimation of the appointment of the liquidator, the amount which in
the opinion of the Commissioner would be sufficient to provide for any tax, interest or 
penalty which is then, or is likely thereafter to become, payable by the company.
(3) When any private company is wound up and any tax, interest or penalty
determined under this Act on the company for any period, whether before or in the course
of or after its liquidation, cannot be recovered, then every person who was a director of
such company at any time during the period for which the tax was due shall, jointly and
severally, be liable for the payment of such tax, interest or penalty, unless he proves to the 
satisfaction of the Commissioner that such non-recovery cannot be attributed to any gross
neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

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 or services or both for any
period cannot be recovered, then, every person who was a director of the private
company during such period shall, jointly and severally, be liable for the payment of 
such tax, interest or penalty unless he proves that the non-recovery cannot be attributed 
to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of 
the company.
(2) Where a private company is converted into a public company and the tax,
interest or penalty in respect of any supply of goods or services or both for any period
during which such company was a private company cannot be recovered before such 
conversion, then, nothing contained in sub-section (1) shall apply to any person who was 
a director of such private company in relation to any tax, interest or penalty in respect of
such supply of goods or services or both of such private company:
Provided that nothing contained in this sub-section shall apply to any personal
penalty imposed on such director.

90. Liability of partners of firm to pay tax.— Notwithstanding any contract
to the contrary and any other law for the time being in force, where any firm isliable to pay
any tax, interest or penalty under this Act, the firm and each of the partners of the firm
shall, jointly and severally, be liable for such payment:
Provided that where any partner retires from the firm, he or the firm, shall intimate
the date of retirement of the said partner to the Commissioner by a notice in that behalf in
writing and such partner shall be liable to pay tax, interest or penalty due up to the date 
of his retirement whether determined or not, on that date:
Provided further that if no such intimation is given within one month from the date
of retirement, the liability of such partner under the first proviso shall continue until the
date on which such intimation is received by the Commissioner.

91. Liability of guardians, trustees, etc.— Where the business in respect of 
which any tax, interest or penalty is payable under this Act is carried on by any guardian,
trustee or agent of a minor or other incapacitated person on behalf of and for the benefit of
such minor or other incapacitated person, the tax, interest or penalty shall be levied upon
and recoverable from such guardian, trustee or agent in like manner and to the same
extent as it would be determined and recoverable from any such minor or other
incapacitated person, as if he were a major or capacitated person and as if he were 
conducting the business himself, and all the provisions of this Act or the rules made 
thereunder shall apply accordingly.

92. Liability of Court of Wards, etc.— Where the estate or any portion of the
estate of a taxable person owning a business in respect of which any tax, interest or penalty
is payable under this Act is under the control of the Court of Wards, the Administrator 
General, the Official Trustee or any receiver or manager (including any person, whatever 
be his designation, who in fact manages the business) appointed by or under any order of 
a court, the tax, interest or penalty shall be levied upon and be recoverable from such
Court of Wards, Administrator General, Official Trustee, receiver or manager in like
manner and to the same extent as it would be determined and be recoverable from the 
taxable person as if he were conducting the business himself, and all the provisions of this
Act or the rules made thereunder shall apply accordingly.

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 a person, 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 legal 
representative or any other person, such legal representative or other person, shall be 
liable 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 his death, his legal representative shall be liable to pay, out of the estate of the 
deceased, to the extent to which the estate is capable of meeting the charge, the tax, 
interest or penalty due from such person under this Act,
whether such tax, interest or penalty has been determined before his death but has
remained unpaid or is determined after his death.
(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016,
where a taxable person, liable to pay tax, interest or penalty under this Act, is a Hindu 
Undivided Family or an association of persons and the property of the Hindu Undivided
Family or the association of persons is partitioned amongst the various members or 
groups of members, then, each member or group of members shall, jointly and severally,
be liable to pay the tax, interest or penalty due from the taxable person under this Act up to
the time of the partition whether such tax, penalty or interest has been determined before
partition but has remained unpaid or is determined after the partition.
(3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016,
where a taxable person, liable to pay tax, interest or penalty under this Act, is a firm, and
the firm is dissolved, then, every person who was a partner shall, jointly and severally, be
liable to pay the tax, interest or penalty due from the firm under this Act up to the time of 
dissolution whether such tax, interest or penalty has been determined before the 
dissolution, but has remained unpaid or is determined after dissolution.
(4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016,
where a taxable person liable to pay tax, interest or penalty under thisAct,––
(a) is the guardian of a ward on whose behalf the business is carried on by the 
guardian; or
(b) is a trustee who carries on the business under a trust for a beneficiary,
then, if the guardianship or trust is terminated, the ward or the beneficiary shall be
liable to pay the tax, interest or penalty due from the taxable person upto the time of the
termination of the guardianship or trust, whether such tax, interest or penalty has been 
determined before the termination of guardianship or trust but has remained unpaid or is 
determined thereafter.

94. Liability in other cases.— (1) Where a taxable person is a firm or an 
association of persons or a Hindu Undivided Family and such firm, association or family 
has discontinued business––
(a) the tax, interest or penalty payable under this Act by such firm, association or 
family up to the date of such discontinuance may be determined as if no such 
discontinuance had taken place; and
(b) every person who, at the time of such discontinuance, was a partner of such 
firm, or a member of such association or family, shall, notwithstanding such 
discontinuance, jointly and severally, be liable for the payment of tax and interest 
determined and penalty imposed and payable by such firm, association or family, 
whether such tax and interest has been determined or penalty imposed prior to or after 
such discontinuance and subject as aforesaid, the provisions of this Act shall, so far as
may be, apply as if every such person or partner or member were himself a taxable person.
(2) Where a change has occurred in the constitution of a firm or an association 
of persons, the partners of the firm or members of association, as it existed before and as 
it exists after the reconstitution, shall, without prejudice to the provisions of section 90,
jointly and severally, be liable to pay tax, interest or penalty due from such firm or
association for any period before its reconstitution.
(3) The provisions of sub-section (1) shall, so far as may be, apply where the
taxable person, being a firm or association of persons is dissolved or where the taxable
person, being a Hindu Undivided Family, has effected partition with respect to the
business carried on by it and accordingly references in that sub-section to discontinuance 
shall be construed as reference to dissolution or to partition.
Explanation.––For the purposes of this Chapter,––
(i) a ―Limited Liability Partnership‖ formed and registered under the
provisions 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.

95. Definitions of Advance Ruling.— In this Chapter, unless the context 
otherwise requires,––
(a) ―advance ruling‖ means a decision provided by the Authority or the 
Appellate Authority to an applicant on matters or on questions specified in sub-section 
(2) of section 97 or sub-section (1) of section 100,in relation to the supply of goods or 
services or both being undertaken or proposed to be undertaken by the applicant;
(b) ―Appellate Authority‖ means the Appellate Authority for Advance Ruling 
referred to in section 99;
(c) ―applicant‖ means any person registered or desirous of obtaining registration 
under this Act;
(d) ―application‖ means an application made to the Authority under subsection (1) of section 97;
(e) ―Authority‖ means the Authority for Advance Ruling referred to in 
section 96;

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 
Unionterritory.

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.

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:
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 shallstate 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.

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 underthe provisions of a State Goods and Services TaxAct 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.

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 beprescribed.

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

102. Rectification of advance ruling.— The Authority or the Appellate 
Authority may amend any order passed by it under section 98 or section 101, 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 within a period
of six months from the date of the order:
Provided that no rectification which has the effect of enhancing the tax liability or 
reducing the amount of admissible input tax credit shall be made unless the applicant or
the appellant has been given an opportunity of being heard.

103. 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 orthe jurisdictional officerin respect of the applicant.
(2) The advance ruling referred to in sub-section (1) shall be binding unless the 
law, facts or circumstances supporting the original advance ruling have changed.

104. Advance ruling to be void in certain circumstances.— (1) Where the 
Authority or the Appellate Authority finds that advance ruling pronounced by it under 
sub-section (4) of section 98 or under sub-section (1) of section 101 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 jurisdictionalofficer.

105. [Powers of Authority and Appellate Authority]— (1) The Authority or
the 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 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.

106. [Procedure of Authority and Appellate Authority] — The Authority or
the Appellate Authority shall, subject to the provisions of this Chapter, have power to 
regulate its own procedure.
 

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 orthe 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]80
, 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
 
80 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019. 

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.

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 subsection, 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.

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 
―AreaBenches‖).
(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 TechnicalMember (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, [[*****]81]
82 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:
[[*****]
83]
84
[Provided further that]85 the Governmentshall, 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 [also that]
86 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,
 
81 Inserted ―except for the State of Jammu and Kashmir,‖ by The Central Goods and Services Tax 
(Extension to Jammu and Kashmir) Act, 2017 (No. 26 of 2017) – Brought into force w.e.f. 8th July, 2017. 
82 Omitted ―except for the State of Jammu and Kashmir‖ by The Finance Act, 2020 (No. 12 of 2020)–
Brought into force w.e.f. 30.06.2020. 
83 Inserted ―Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services 
Tax Appellate Tribunal constituted under this Act shall be the State Appellate Tribunal constituted under 
the Jammu and Kashmir Goods and Services Tax Act, 2017:‖ by The Central Goods and Services Tax 
(Extension to Jammu and Kashmir) Act, 2017 (No. 26 of 2017) – Brought into force w.e.f. 8th July, 2017.
84 Omitted ―Provided that for the State of Jammu and Kashmir, the State Bench of the Goods and Services 
Tax Appellate Tribunal constituted under this Act shall be the State Appellate Tribunal constituted under the 
Jammu and Kashmir Goods and Services Tax Act, 2017:‖ by The Finance Act, 2020 (No. 12 of 2020)–
Brought into force w.e.f. 30.06.2020.
85 Substituted by The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017 (No. 
26 of 2017) received the assent of the President on the 23rd August, 2017 whereby a new proviso was 
inserted – Brought into force w.e.f. 8th July, 2017. 
86 Substituted by The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017 (No. 
26 of 2017) – Brought into force w.e.f. 8th July, 2017.
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 twoMembers:
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 orArea.
(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.

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, unlesshe—
(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 hisnominee:
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.

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 thisAct and the rules made
thereunder, theAppellateTribunalshall have powerto 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 ex parte; 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

112. Appeals to 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
ordersought 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]87
, 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.

113. Orders of Appellate Tribunal.— (1) The Appellate Tribunal may, after 
giving the parties to the appeal an opportunity of being heard, passsuch ordersthereon
asit thinksfit, 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 
 
87 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019.

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.

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.

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.

116. Appearance by authorised representative.— (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 
underthisAct for a period of one year from the date of hisretirement 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 TaxAct, 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.

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 thissection.

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.

119. Sums due to be 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.

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).

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.
 

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.
(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 subsection (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.

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.
 

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.

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.

126. General disciplines related to penalty.— (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

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.

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.

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 twentyfive thousand rupees, whichever is less, where the owner of the goods does not come 
forward for payment of such tax andpenalty;
(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 [fourteen days]88
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 [fourteen 
days]
89 may be reduced by the proper officer.

88 Substituted for ―seven days‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) – Brought into force w.e.f. 01st February, 2019. 
89 Substituted for ―seven days‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 
2018) – Brought into force w.e.f. 01st February, 2019. 
 

130. Confiscation of goods or conveyances and levy of penalty.
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 thinksfit:
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.

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.

132. Punishment for certain offences.— (1) Whoever commits 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);
(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 orthe amount of refund wrongly taken exceedsfive 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 orthe amount ofrefundwrongly taken exceedstwo 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.

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.

134. Cognizance of offences.— 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 suchoffence.

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.

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 thisActshall 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 witnessin 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.

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.

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.
 

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 conditionsso prescribed are not complied with.
(2) The final certificate of registration shall be granted in such form and
manner and subject to such conditions as may be prescribed.
(3) The certificate of registration issued to a person under sub-section (1) shall 
be deemed to have not been issued if the said registration is cancelled in pursuance of an 
application filed by such person that he was not liable to registration under section 22 or 
section 24.

140. 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]90 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]
91in 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 
 
90 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 
of 2018) – Brought into force w.e.f. 01st February, 2019. 
91 Inserted w.e.f. 01.07.2017 by The Finance Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 
18.05.2020. 
 

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]92 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 CENVATcredit underthe existing law and is also admissible as
input tax credit under thisAct.
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, within such time and in such manner as may be prescribed, subject to]93
the following conditions, namely:––
(i) such inputs or goods are used or intended to be used for making taxable 
supplies under this Act;
 
92 Inserted w.e.f. 01.07.2017 by The Finance Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 
18.05.2020. 
93 Substituted w.e.f. 01.07.2017 for ―goods held in stock on the appointed day subject to‖ by The Finance 
Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 18.05.2020. 
(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 thisAct, 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,]94
 
94 Substituted w.e.f. 01.07.2017 for ―existing law‖ by The Finance Act, 2020 (No. 12 of 2020) –Brought 
into force w.e.f 18.05.2020.

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 subsection.
(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, 
within such time and in such manner as may be prescribed, subject to]95 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 servicesreceived prior to the appointed day by an Input Service
Distributor shall be eligible for distribution as [credit under this Act, within such time and 
 
95 Substituted w.e.f. 01.07.2017 for ―goods held in stock on the appointed day, subject to‖ by The Finance 
Act, 2020 (No. 12 of 2020)–Brought into force w.e.f 18.05.2020. 
 

in such manner as may be prescribed, even if]96 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 [within such time and in such manner]97 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, within such time and in such manner as 
may be prescribed, subject to]98 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 
 
96 Substituted w.e.f. 01.07.2017 for ―credit under this Act even if‖ by The Finance Act, 2020 (No. 12 of 
2020)–Brought into force w.e.f 18.05.2020. 
97 Substituted w.e.f. 01.07.2017 for ―in such manner‖ by The Finance Act, 2020 (No. 12 of 2020)–Brought 
into force w.e.f 18.05.2020.
98 Substituted w.e.f. 01.07.2017 for ―credit can be reclaimed subject to‖ by The Finance Act, 2020 (No. 12 
of 2020)–Brought into force w.e.f 18.05.2020.

in such manner as may be prescribed.
Explanation 1.—For the purposes of sub-sections (3), (4) and (6), the expression 
―eligible duties‖ means––
(i) the additional duty of excise leviable undersection 3 of theAdditional 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) [*****]99;
(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 
TariffAct, 1985; and
(vii) the National Calamity Contingent Duty leviable under section 136 of the 
FinanceAct, 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 (5), the expression ―eligible duties 
and taxes‖ means––
(i) the additional duty of excise leviable undersection 3 of theAdditional 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;
 
99 Omitted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 
of 2018) – Brought into force w.e.f. 01st February, 2019.
 

(iv) [*****]100;
(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 
FinanceAct, 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 TariffAct,1975.]101

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:
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 monthsfrom 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.
 
100 Omitted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 
of 2018) – Brought into force w.e.f. 01st February, 2019. 
101 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 
of 2018) – Brought into force w.e.f. 01st February, 2019. 

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 underthe 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 thisAct.
(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
amountso 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 butwithin the time limitspecified forsuch revision underthe 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
underthe 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 relating to
Value Added Tax and has also issued an invoice for the same before the appointed day, no
deduction of tax at source under section 51 shall be made by the deductor under the said 
section where payment to the said supplier is made on or after the appointed day.
Explanation.––For the purposes of this Chapter, the expressions ―capital goods‖, 
―Central Value Added Tax (CENVAT) credit‖, ―first stage dealer‖, ―second stage dealer‖,
or ―manufacture‖ shall have the same meaning as respectively assigned to them in the 
Central Excise Act, 1944 or the rules made thereunder.
 

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 unlessthe 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.]102
(2) The responsibility for keeping proper accounts for the inputs or capital goods
 
102 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) –Brought 
into force w.e.f. 01st February, 2019. 

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, ifsuch job workerisregistered, 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.

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 ofsuch 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.

145. Admissibility of micro films, 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.

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.

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.

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.

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.
 

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 IndiaAct, 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 
MotorVehiclesAct, 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 
DepositoriesAct, 1996; or
(m) an officer of the Reserve Bank of India as constituted under section 3 of the 
Reserve Bank of IndiaAct, 1934; or
(n) the Goods and Services Tax Network, a company registered under the 
CompaniesAct, 2013; or
(o) a person to whom a Unique Identity Number has been granted under subsection (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.

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 .

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.

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 beforehim.

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.

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.

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 PenalCode.

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.

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 particularsto any officer appointed forthe 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.

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 thinksfit.
(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.

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.

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.

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.

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

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 thisAct.
(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.

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.

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 annulmentshall be without prejudice to 
the validity of anything previously done under that rule or regulation or notification, as 
the case may be.

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.

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]103, [sub-section (1) 
of section 143, except the second proviso thereof]104, 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.

168A. Power of Government to extend time limit in special 
circumstances.— (1) Notwithstanding anything contained in this Act, the Government 
may, on the recommendations of the Council, by notification, extend the time limit 
specified in, or prescribed or notified under, this Act in respect of actions which cannot 
be completed or complied with due to force majeure.
(2) The power to issue notification under sub-section (1) shall include the power 
to give retrospective effect to such notification from a date not earlier than the date of 
commencement of this Act.
Explanation.— For the purposes of this section, the expression ―force majeure‖ 
means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other 
calamity caused by nature or otherwise affecting the implementation of any of the 
provisions of this Act.

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 hislast 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.

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.

171. Antiprofiteering 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.

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 [five 
years]107 from the date of commencement of this Act.
(2) Every order made under thissection shall be laid, assoon as may be, after it is
made, before each House ofParliament.
 
106 Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) – Brought into force w.e.f. 01st January, 
2020. 

173. Amendment of Act 32 of 1994.— Save as otherwise provided in this Act,
Chapter V of the Finance Act, 1994 shall be omitted.

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 asthe repealedActs) 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, orliability acquired, accrued orincurred 
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; or
(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 otherlegal proceedings orrecovery of arrears orremedy 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 proceedingsincluding 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.
 

107 Substituted for ―three years‖ by The Finance Act, 2020 (No. 12 of 2020) –Brought into force w.e.f. 
30.06.2020.

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 [person]108 from a related person or from any of his
other establishments outside India, in the course or furtherance of business.
 
108 Substituted for ―taxable person‖ by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 
31 of 2018) – Brought into force w.e.f. 01st February, 2019.

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 stipulatesthat 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;
 
109 Inserted w.e.f. 01st July, 2017 by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 
of 2018) – Brought into force w.e.f. 01st February, 2019. 
(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;
(c) temporary transfer or permitting the use or enjoyment of any intellectual 
property right;
(d) development, design, programming, customisation, adaptation,
upgradation, enhancement, implementation of information technologysoftware;
(e) 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.
6. 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.
 

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.
8. (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.]110
Explanation [1]
111
.—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 ―warehoused 
goods‖ shall have the same meaning as assigned to it in the Customs Act, 1962.]11

110 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019.
111 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought 
into force w.e.f. 01st February, 2019.
112 Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) – Brought
into force w.e.f. 01st February, 2019. 
 

The following removal of difficulty orders have been issued:-
 Order No. 01/2017 dated 13.10.2017
 Order No. 01/2018 dated 11.12.2018
 Order No. 02/2018 dated 31.12.2018
 Order No. 03/2018 dated 31.12.2018
 Order No. 04/2018 dated 31.12.2018
 Order No. 01/2019 dated 01.02.2019
 Order No. 02/2019 dated 01.02.2019
 Order No. 03/2019 dated 08.03.2019
 Order No. 04/2019 dated 29.03.2019
 Order No. 05/2019 dated 23.04.2019
 Order No. 06/2019 dated 28.06.2019
 Order No. 07/2019 dated 26.08.2019
 Order No. 08/2019 dated 14.11.2019
 Order No. 09/2019 dated 03.12.2019
 Order No. 10/2019 dated 26.12.2019
 Order No. 01/2020 dated 25.06.2020