GUJARAT VALUE ADDED TAX ACT, 2003

GUJARAT VALUE ADDED TAX ACT, 2003

Preamble 1 - GUJARAT VALUE ADDED TAX ACT, 2003

THE GUJARAT VALUE ADDED TAX ACT, 2003

[ACT NO. 1 OF 2005]

[25th JANUARY, 2005]

(EFFECTIVE ON AND FROM 1-4-2006)

AMENDED BY GUJ. ACT. NO 6 OF 2006

AN ACT

PREAMBLE

to consolidate and amend the laws relating to the levy and collection of tax on value added basis in respect of sale [1][***] of goods in the State of Gujarat.

It is hereby enacted in the Fifty-fourth Year of the Republic of India as follows:-

Section 1 - Short title, Extent and Commencement

(1)     This Act may be called the Gujarat Value Added Tax Act, 2003.

(2)     It extends to the whole of the State of Gujarat.

(3)     This section shall come into force at once and the remaining provisions of this Act shall come into force on such date[2] as the State Government may, by notification in the Official Gazette, [3][appoint].

Section 2 - Definitions

In this Act, unless the context otherwise requires,-

[4][***]

[5][(3) "appointed day" means the date on which the remaining provisions of this Act shall come into force under sub-section (3) of section 1;]

(4) ? "business" includes -

(i)       any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit or gain and whether or not any profit or gain accrues from such trade, commerce, manufacture, adventure or concern; and

(ii)      any transaction of buying, selling or supplying [6][raw materials, processing materials, consumable stores, waste products or such other goods] which is ancillary or incidental to or resulting from such trade, commerce, manufacture, adventure or concern;

[7][***]

(6) ? "Central Act" means the Central Sales Tax Act, 1956;

(7) ? "Commission Agent" means a dealer who bonafidely buys or sells, for an agreed commission, any goods on behalf of principals;

(8)?  "Commissioner" means the person appointed to be the Commissioner of Commercial Tax for the purposes of this Act.

[8][***]

(10) "dealer" means any person who, for the purpose of or consequential to his engagement in or, in connection with or incidental to or in the course of his business buys, sells, manufactures, makes supplies or distributes goods, directly or otherwise, whether for cash or deferred payment, or for commission, remuneration or otherwise and includes,-

a)        the Central Government or a State Government or any local authority such as municipality or municipal corporation or panchayat, a statutory authority, a company, a partnership firm, a Hindu Undivided Family or any society, club, association or body, incorporated or not, of persons which carries on business;

b)        a casual dealer, that is to say, a person who whether as principal, agent or in any other capacity, undertakes occasional transaction of a business nature in any exhibition-cum-sale or auction or otherwise in the State, whether for cash, deferred payment, commission, remuneration or other valuable consideration;

c)        an auctioneer, who sells or auctions goods belonging to any principal whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of principal;

d)        a factor, broker, commission agent, del credere agent or an auctioneer or any mercantile agent, by whatever name called, who carries on business on behalf of any principal whether disclosed or not;

e)        any person who transfers, otherwise than in pursuance of a contract, property in any goods for cash, deferred payment or other valuable consideration;

f)         any person who transfers property in goods (whether as goods or in some other form) involved in the execution of works contract;

g)        any person who delivers goods on hire purchase or any system of payment by installments;

h)       any person who transfers the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; and

any person who supplies, by way of or as part of any service or in any other manner whatsoever, goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration

Explanation -

(i)       A society (including a co-operative society), club or firm or an association, which, whether or not in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, from or to its members or other persons for cash, deferred payment, commission, remuneration or other valuable consideration, shall be deemed to be dealer for the purpose of this Act.

(ii)      The Central Government or a State Government or a local authority or railway administration or port trust or a statutory body, which, whether or not in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, for cash, deferred payment, commission, remuneration or other valuable consideration, shall be deemed to be dealer for the purposes of this Act.

(iii)     Any person or body, which disposes of any goods including unclaimed, confiscated, unserviceable, scrap, surplus, old, obsolete, discarded, waste or surplus product or goods, whether by auction or otherwise, directly or through an agent, for cash deferred payment, commission, remuneration or other valuable consideration, shall be deemed to be dealer for the purposes of this Act.

Exceptions - The following shall not be deemed to be a dealer within the meaning of this clause, namely:-

[9][***]

[10][***]

[11][(12) "earlier law" means any of the following laws, that is to say:-

(i)       the Bombay Sales of Motor Spirit Taxation Act, 1958,

(ii)      the Gujarat Sales Tax Act, 1969, or

(iii)     the Gujarat Purchase Tax on Sugarcane Act, 1989,

as amended from time to time and includes enactments which have validated anything done or omitted to be done under these laws;]

[12][(13) "goods" means goods as covered under entry 54 of List II of the Seventh Schedule to the Constitution of India;]

[13][(13A) "HSN code" means harmonized system of nomenclature code assigned to the goods specified in the Schedules;]

(14)  "manufacture" with its grammatical variations and cognate expressions means includes producing, making, extracting, collecting, altering, ornamenting, fishing, assembling or otherwise processing, treating or adapting any goods; but does not include such manufactures or manufacturing processes as may be prescribed;

(15)  "person" includes an individual, a joint family or Hindu Undivided Family, a company, a firm, an association of persons or body of individuals, whether incorporated or not, a society, club or other institution, a local authority, the Central Government or a State Government and every artificial juridical person not falling within any of the preceding descriptions;

(16)  "place of business" means any place where a dealer carries on business and includes, -

(a)      a warehouse, godown or other place where a dealer stores or processes his goods;

(b)      any place where a dealer produces or manufactures goods;

(c)      any place where a dealer keeps his books of accounts;

(d)      any vehicle or vessel or any other carrier wherein the goods are stored or used for transporting the goods;

(e)      any place of business of an agent by whatever name called through whom a dealer carries on business;

(17)  "prescribed" means prescribed by rules;

(18)  "purchase price" means the amount of valuable consideration paid or payable by a person for any purchase made including the amount of duties levied or leviable under the Central Excise Tariff Act, 1985 or the Customs Act, 1962 and any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged and includes, -

(a)      in relation to ?

(i)       the transfer, otherwise than in pursuance of a contract of property in any goods,

(ii)      the supply of goods by any unincorporated association or body of persons to a member thereof,

(iii)     the 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 (whether or not intoxicating), the amount of cash, deferred payment or other valuable consideration paid or payable therefor,

(b)      in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, such amount as is arrived at by deducting from the amount of valuable consideration paid or payable by a person for the execution of such works contract, the amount representing labour charges for such execution,

(c)      in relation to the delivery of goods in hire purchase or any system of payment by installments, the amount of valuable consideration payable by person for such delivery;

(19)  "raw materials" means goods used as ingredient in the manufacture of other goods and includes processing materials, consumable stores and [14][***] so manufactured but does not include fuels for the purpose of generation of electricity;

(20)  "registered dealer" means a dealer registered under the provisions of this Act, who holds a certificate of registration granted or deemed to have been granted under this Act;

(21) "resale" means a sale of purchased goods,-

(i)       in the same form in which they were purchased; or

(ii)      without using them in the manufacture of any goods or without doing anything to them which amounts to or results in, a manufacture;

and the word "resell" shall be construed accordingly;

(22)  "rules" means the rules made under this Act;

(23)  "sale" means a sale of goods made within the State for cash or deferred payment or other valuable consideration and includes,-

(a)      transfer, otherwise than in pursuance of a contract, of property in goods for cash, deferred payment or other valuable consideration,

(b)      transfer of property in goods (whether as goods or in some other form) involved in execution of a works contract,

(c)      delivery of goods on hire purchase or any system of payment by installments,

(d)      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,

(e)      supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration,

(f)       supply of goods by a society or club or an association to its members on payment of a price or of fees or subscription or any consideration,

(g)      supply of goods by way of or as part of any service or in any other manner whatsoever, of

(h)     supply of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration,

(i)       supply by way of barter of goods,

(j)       disposal of goods by a person in the manner prescribed in Explanation (iii) to clause 10

but does not include a mortgage, hypothecation, charge or pledge; and the words "sell", "buy" and "purchase" with all their grammatical variations and cognate expressions shall be construed accordingly.

Explanation -

(i)       For the purposes of this clause, "sale within the Sate" includes a sale determined to be inside the State in accordance with the principles formulated in sub-section (2) of section 4 of the Central Act;

(ii)      for the purpose of sub-clause (b) of the expression "works contract" means a contract for execution of works and includes such works contract as the Sate Government may, by notification in the Official Gazette, specify;

(iii)     every transfer of property in goods by the Central Government, any State Government, a statutory body or a local authority for cash, deferred payment or other valuable consideration, whether or not in the course of business, shall be deemed to be a sale for the purpose of this Act;

(24) "sale price" means the amount of valuable consideration paid or payable to a dealer or received or receivable by a dealer for any sale of goods made including the amount of duties lived or leviable under the Central Excise Tariff Act, 1985 or the Customs Act, 1962 and any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof and includes,-

(a)      in relation to ?

(i)       the transfer, otherwise than in pursuance of a contract, of property in any goods,

(ii)      the transfer of the right to use any goods for any purpose, whether or not for a specified period,

(iii)     the supply of goods by any unincorporated association or body of person to a member thereof,

(iv)    the 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 (whether or not intoxicating), the amount of cash, deferred payment or other valuable consideration paid or payable therefor;

(b)      in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for the execution of such works contract, the amount representing labour charges for such execution;

(c)      in relation to the delivery of goods on hire purchase or any system of payment by installments, the amount of valuable consideration payable to a person for such delivery;

(25) "Schedule" means a Schedule appended to this Act;

(26) "the State" means the Sate of Gujarat;

(27) "tax" means a tax leviable and payable under this Act [15][on sales of goods];

(28) "tax period" means a calendar month or a quarter as may be prescribed by the State Government;

[16][(29) "taxable goods" means goods liable to tax under section 7 excluding the goods on which no tax is payable under section 5;]

(30) "taxable turnover" means the turnover of all sales [17][***] of a dealer during the prescribed period in any year, which remains after deducting therefrom,-

(a)      the turnover of sales not subject to tax under this Act;

(b)      the turnover of goods declared exempt [18][***] under a notification under sub-section (2) of section 5, and

(c)      in case of turnover of sales in relation to works contract, the charges towards labour, service and other like charges, and subject to such conditions as may be prescribed:

Provided that in the cases where the amount of charges towards labour, service and other like charges in such contract are not ascertainable from the terms and conditions of the contract, the amount of such charges shall be calculated in such manner as may be prescribed;

(31) "Tribunal" means the tribunal constituted under section 19;

(32) "turnover of purchases" means the aggregate of the amounts of purchase price paid or payable by a dealer in respect of any purchase of goods made by him during a given period after deducting the amount of purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller and returned to him within the prescribed period;

(33) "turnover of sales" means the aggregate of the amount of sale price received or receivable by a dealer in respect of any sale of goods made during a given period after deducting the amount of sale price, if any, refunded by the dealer to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period;

(34) "total turnover" means aggregate of the following transactions effected by a dealer:

(a)      turnover of sales [19][***] of goods within the State whether such sales [20][***] of goods are taxable or exempt under this Act;

(b)      turnover of sales of goods in the course of inter-State trade or commerce;

(c)      turnover of sales of goods in the course of export of goods out of the territory of India;

(d)      turnover of sales by a dealer on his own account and also on behalf of his principal.

(35) "value of goods" means the value as ascertained from the purchase invoices or bills and includes insurance charges, excise duties, countervailing duties, value added tax, sales tax, transport charges, freight charges and all other charges incidental to the transaction of the goods:

Provided that where the purchase invoices or bills are not produced or when the goods are acquired or obtained otherwise than by way of purchase, the value of goods shall be the value at which the goods of like kind or quality are sold or are capable of being sold in open market;

[21][(36) "Year" means financial year.]

[22][***]

Section 3 - Incidence of tax

(1)     Subject to the provisions of this Act, every dealer,-

(i)       whose total turnover during the year immediately preceding the appointed day exceeded rupees five lakhs and whose taxable turnover exceeded rupees ten thousand in a year (the aforesaid amounts of total turnover and taxable turnover are hereinafter referred to as "thresholds of turnover"), or

(ii)      who was registered under the earlier law or under the Central Act as on the appointed day, or

(iii)     whose total turnover and taxable turnover in any year first exceed the thresholds of turnover, or

(iv)    who is registered or liable to be registered as a dealer under this Act or under the Central Act at any time after the appointed day

shall be liable to pay tax in accordance with the provisions of this Act.

(2)     Notwithstanding anything contained in this section, a casual dealer or an auctioneer shall be liable to be registered if his taxable turnover of sales exceeds ten thousand rupees and he shall be liable to pay tax in accordance with the provisions of this Act.

(3)     The dealer shall be liable to pay tax,-

(a)      in case of clauses (i) and (ii) of sub-section (1), with effect from the appointed day;

(b)      in case of clause (iii) of sub-section (1), with immediate effect when his turnover calculated from the commencement of the year first exceeds the thresholds of turnover;

(c)      in case of clause (iv) of sub-section (1), with immediate effect when he becomes so liable or the date of registration under this Act, whichever is earlier:

Provided that the dealer shall not be liable to pay tax in respect of thresholds of turnover as takes place during the period prior to the relevant date of effect under this sub-section.

(4)     Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of one year during which his total turnover and taxable turnover have remained below the thresholds of turnover and such further period after the date of such expiry as may be prescribed; and on the expiry of such further period his liability to pay tax shall cease:

Provided that any dealer whose liability to pay tax under this Act ceases or his total turnover and taxable turnover during the year remains below the thresholds of turnover, may apply for the cancellation of his certificate of registration; and on such cancellation, [23][***]

Provided that any dealer whose liability to pay tax under this Act ceases or his total turnover and taxable turnover during the year remains below the thresholds of turnover, may apply for the cancellation of his certificate of registration; and on such cancellation, his liability to pay tax shall cease and such dealer shall remain liable to pay tax till his certificate of registration is cancelled.

(5)     Every dealer whose liability to pay tax under this Act has ceased under sub-section (4) or whose certificate of registration has been cancelled, shall, if his total turnover and taxable turnover calculated from the commencement of any year (including the year in which the registration has been cancelled) again exceed the threshold of turnover, on any day within such year, be liable to pay tax with effect from the date immediately following the day on which his such turnover again exceed thresholds of turnover of sales effected by him after that date.

(6)     Where by an order passed under this Act, it is found that any person registered as a dealer ought not to have been so registered, then, notwithstanding anything contained in this Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he were a dealer.

Section 4 - Certain sales and purchases not liable to tax

Nothing contained in this Act or the rules made thereunder shall be deemed to impose or authorise the imposition of tax on any sale or purchase of any goods where such sale or purchase takes place -

(a)      in the course of inter-State trade or commerce; or

(b)      outside the Sate; or

(c)      in the course of the import of goods into or export of goods out of the territory of India, and the provisions of this Act and the rules thereunder shall be construed accordingly.

Explanation- Section 3,4 and 5 of the Central Act shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in clause (a), (b) or (c).

Section 5 - Exemptions

[24][***]

[25](2) ?(a) Subject to such conditions as it may impose, the State Government may, if it considers necessary so to do in the public interest, by notification in the Official Gazette, exempt any specified class of sales [26][***] or sales [27][***] of goods by any specified dealer or specified class of dealers from payment of the whole or any part of the tax payable under the provisions of this Act.

(b) ???Where the State Government considers it necessary so to do in the public interest to continue tax exemption granted to the sales [28][***] of goods by industrial units under sub-section (2) of section 49 of the Gujarat Sales Tax Act, 1969, it may, by notification in the Official Gazette, continue such exemption with such modification, subject to such conditions and for such period, as may be prescribed.

(3)?? ?Every notification issued[29] [[30] [***] sub-section (2)] shall be laid for not less than thirty days before the State Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such modifications as the State Legislature may make, during the session in which it is so laid or session immediately following. Any rescission or modification so made by the State Legislature shall be published in the Official Gazette, and shall thereupon take effect.

Section 5A - [Omitted]

[31][***]

Section 6 - Taxes payable by a dealer

Subject to the other provisions of this Act, every dealer, who is liable to pay tax under this Act, shall pay the tax leviable in accordance with the provisions of this Act.

Section 7 - Levy of tax on turnover of sales and rates of tax

[32][(1) Subject to the provisions of this Act, there shall be levied a tax on the turnover of sale of Motor spirit commonly known as Petrol, High Speed Diesel, Aviation Turbine Fuel, Petroleum Crude, Natural Gas and Alcoholic Liquor for human consumption specified in Schedule III at the rate set out against each of them:

Provided that the Government may levy, from importer or manufacturer or oil marketing companies, a tax at full rate on the retail price in such manner as may be notified by the Government.]

[33][***]

[34][(2) The State Government may, by notification in the Official Gazette,-

[35][***]

(ii) ???add to or omit from, or otherwise amend or modify Schedule III so as to levy tax on the basis of price, weight, volume, measurement or unit, or reduce or enhance the rate of tax payable in respect of any goods specified in Schedule III and thereupon Schedule III shall be deemed to have been amended accordingly.]

(3) ??Every notification issued under sub-section (2) shall be laid for not less than thirty days before the Sate Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such it is so laid or session immediately following. Any rescission or modification so made by the State Legislature shall be published in the Official Gazette, and shall thereupon take effect.

Section 7A - Power to assign HSN code to goods

[36][7A. Power to assign HSN code to goods.

For the purpose of proper identification of the goods, the State Government may by rules, assign the HSN code to each of the goods specified in the Schedules and different codes may be assigned to different goods covered under the same entry in the Schedules.]

Section 8 - Adjustments in tax

(1)     The provisions of sub-section(2) shall apply where, in relation to the sales of taxable goods by any registered dealer-

(a)      that sale has been cancelled; or

(b)      the consideration previously agreed upon for that sale has been altered by agreement with the recipient, whether clue to the offer of a discount or for any other reason; or

(c)      the goods or part of the goods sold have been returned to the seller, and as a result of the occurrence of any one or more of the above mentioned events of such sales, the seller has-

                                           (i)            provided a tax invoice in relation to that sale and the amount shown therein as tax charged on that sale is incorrect in relation to the amount properly chargeable on that sale; or

                                          (ii)            furnished a return in relation to the period in respect of which tax on that sale is attributable, and has accounted for an incorrect amount of tax on that sale in relation to the amount properly chargeable on that sale.

(2)     Where a seller has accounted for either in the tax invoice or in the return an incorrect amount of tax as contemplated in sub-section (1), such seller shall make an adjustment in calculating the tax payable by him in the return for the tax period during which it has become apparent that the tax is incorrect. Such adjustment shall be made in the following manner, namely:-

(a)      if the amount of tax chargeable in relation to that sale exceeds the amount of tax actually accounted for by the seller, the amount of that excess shall be deemed to be tax charged by such seller in relation to a taxable sale attributable to the tax period in which the adjustment is to be made, and shall not be attributable to any prior tax period; or

(b)      the amount of tax actually accounted for exceeds the amount of tax properly chargeable in relation to that sale, such seller shall reduce the amount of tax attributable to the said tax period in terms of section 7 by that excess amount of tax;

Provided that the reduction in the amount of tax under clause (b) shall not be made-

(a)      where the excess tax has been borne by the purchaser of goods, or

[37][(b) If the relevant event as described in sub-section (1) has occurred subsequent to such period as may be prescribed, from the date of such sales made by the dealer.]

Section 9 - [Omitted]

[38][***] 

Section 10 - Deeming provision for packing material

[39][10. Deeming provision for packing material

Notwithstanding anything contained in this Act, the value of goods shall be inclusive of value of packing material unless value of packing material is separately charged and tax is collected under the Gujarat Goods and Services Tax Act, 2017 (Guj. 25 of 2017).]

Section 11 - Tax credit

(1)     (a) A registered dealer who has purchased the taxable goods (hereinafter referred to as the "purchasing dealer") shall be entitled to claim tax credit equal to the amount of,-

[40][(i) tax collected from the purchasing dealer by a registered dealer from whom he has purchased such goods or the tax payable by the purchasing dealer to a registered dealer who has sold such goods to him during the tax period, or;]

[41][***]

(b) ???The tax credit to be so claimed under this sub-section shall be subject to the provision of sub-sections (2) to (12); and the tax credit shall be calculated in such manner as may be prescribed.

(2)     The registered dealer who intends to claim the tax credit shall maintain the register and the books of accounts in such manner as may be prescribed.

(3)     ?(a) Subject to the provisions of this section, tax credit to be claimed under sub-section (1) shall be allowed to a purchasing dealer on his purchase of taxable goods made mentioned in (i) or (ii) above which are intended for the purpose of-

(i)       sale or re-sale by him in the Sate;

(ii)      sale in the course of inter-State trade and commerce, other than the sales in the course of export out of the territory of India;

(iii)     branch transfer or consignment of taxable goods to other States (subject to the provision of sub-clause (b) below);

(iv)    sales in the course of export out of the territory of India;

(v)      sales to export oriented units or the units in Special Economic Zones for sale in the course of export out of the territory of India;

(vi)    Use as raw material in the manufacture of taxable goods intended for (i) to (v) above [42][***];

[43][***]

(b) ???Notwithstanding anything contained in this section, the amount of tax credit in respect of a dealer shall be reduced by the amount of tax calculated at the rate of four per cent on the [44][taxable turnover of purchases within the State]-

(i)       of taxable goods consigned or dispatched for branch transfer or to his agent outside the state, or

(ii)      of taxable goods which are used as raw materials in the manufacture, [45][***] which are dispatched outside the State in the course of branch transfer or consignment or to his agent outside the State.

[46][(iii) of fuels used for the [47][manufacture of taxable goods].]

(4)     The tax credit shall not be claimed by the purchasing dealer until the tax period in which he receives from a registered dealer from whom he has purchased taxable goods, a tax invoice (in original) containing particulars as may be prescribed under sub-section (1) of section 60 evidencing the amount of tax.

(5)     Notwithstanding anything contained in this Act, tax credit shall not be allowed for purchases-

(a)      made from any person other than a registered dealer under this Act;

(b)      made from a dealer who is not liable to pay tax under this Act;

[48][***]

(d) ???made prior to the relevant date of liability to pay tax as provided in sub-section (3) of section 3;

[49][(dd) made prior to the date of registration;]

(e)?? ?made in the course of inter-State trade and commerce;

(f)[50]  [of the goods (not being taxable goods dispatched outside the State in the course of branch transfer or consignment)] which are disposed of otherwise than in sale, resale or manufacture;

(g)?? ?of [51][***] the goods exempt from whole of tax by a notification under sub-section (2) of section 5;

(h) ???of the goods which are used in manufacture of [52][***], [53][or the goods exempt from the whole of the tax by a notification under sub-section (2) of section 5] [54][***];

[55][***]

(k) ?? [56][of the property] or goods not connected with the business of the dealer;

(l) ????of the goods which are used as fuel in generation of electrical energy meant for captive use or otherwise;

[57][(ll) of petrol, high speed diesel, [58][and petroleum crude] unless such purchase is intended for resale;]

(m) of the goods which are used as fuel in motor vehicles;

[59][***]

(mmm) of the goods for which right to use is transferred for any purpose (whether or not for a specified period), for cash, deferred payment or other valuable considerations;

(mmmm) made from a dealer after the name of such dealer has been published under sub-section (11) of section 27 or section 97;]

(n) ???of the goods which remain as unsold stock at the time of closure of business;

[60][***]

(o)?? ?where original invoice does not contain the details of tax charged separately by the selling dealer from whom purchasing dealer has purchased the goods;

(p) ???where original tax invoice [61][or duplicate thereof duly authenticated in accordance with the rules made in this behalf] is not available with purchasing dealer or there is evidence that the same has not been issued by the selling dealer from whom the goods are purported to have purchased;

[62][***]

[63][(II) Notwithstanding anything contained in clause (d) or (dd) in this subsection and subject to such conditions and in such manner as may be prescribed, a registered dealer shall be allowed to claim tax credit for the taxable goods held in stock on the date of registration which are purchased after 1st April, 2008 and during the period of one year ending on the date of registration.

[64][***]

(6)     The State Government may, by notification in the Official Gazette, specify any goods or the class of dealers that shall not be entitled to whole or partial tax credit.

(7)     Where a registered dealer without entering into a transaction of sale, issues to another registered dealer tax invoice, retail invoice, bill or cash memorandum with the intention to defraud the Government revenue or with the intention that the Government may be defrauded of its revenue, the Commissioner may, after making such inquiry as he thinks fit and giving a reasonable opportunity of being heard, deny the benefit of tax credit, in respect of such transaction, to such registered dealers issuing or accepting such tax invoice, retail invoice, bill cash memorandum either prospectively or retrospectively from such date as the Commissioner may, having regard to the circumstances of the case, fix.

[65][(7A) Notwithstanding anything contained in this section, in no case the amount of tax credit on any purchase of goods shall exceed the amount of tax in respect of the same goods, actually paid, if any, under this Act or any earlier law, into Government treasury:

[66][***]

(8)     ?(a) If the goods purchased were intended for the purposes specified under sub-section (3) and are subsequently used fully or partly for purposes other than those specified under the said sub-section or are used fully or partly in the circumstances described in sub-section (5), the tax credit, if availed of, shall be reduced on account of such use, from the tax credit being claimed for the tax period during which such use has taken place; and such reduction shall be done in the manner as may be prescribed.

[67][(b) Where the capital goods referred to in sub-clause (vii) of clause (a) of sub-section (3) are not used continuously for a full period of five years in the State, the amount of tax credit shall be reduced proportionately having regard to the period falling short of the period of five years.

[68][provided that when a dealer migrating to the Gujarat Goods and Services Tax Act, 2017 (Guj. 25 of 2017) uses the capital goods till completion of remaining period of limit of 5 years continuously under the Gujarat Goods and Services Tax Act, 2017 (Guj. 25 of 2017), the tax credit shall not be reduced for such period.]

[69][(8A)     (1) When a dealer has availed the tax credit for tax paid on purchases of goods in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the date of coming into force of the Gujarat Value Added Tax (Amendment) Act, 2017 (Guj. 26 of 2017) and he opts for composition under section 10 of the Gujarat Goods and Services Tax Act, 2017 (Guj. 26 of 2017), such tax credit shall stand reversed. Such amount of reversed tax credit shall be adjusted from the present balance of tax credit available. If such dealer does not have in balance the tax credit available for adjustment of reversed tax credit, he shall pay into Government treasury, a sum equal to the amount of unadjusted reversed tax credit.

(2) ???When a dealer has availed the tax credit for tax paid on purchases of capital goods on the date of coming into force of the Gujarat Value Added Tax (Amendment) Act, 2017 (Guj. 26 of 2017) and he opts for composition under section 10 of the Gujarat Goods and Services Tax Act, 2017 (Guj. 25 of 2017), but period of five year has not completed, such tax credit shall stand reversed. Such amount of reversed tax credit shall be adjusted from the present balance of tax credit available. If such dealer does not have in balance the tax credit available for adjustment of reversed tax credit, he shall pay into Government treasury, a sum equal to the amount of unadjusted reversed tax credit.]

(9)     The registered dealer may claim the amount of net tax credit, which shall be determined in the manner as may be prescribed.

(10)   Where any purchaser, begin a registered dealer, has been issued with a credit note or debit note in terms of section 61 or if he returns or rejects goods purchased, as a consequence of which the tax credit availed by him in any period in respect of which the purchase of goods relates, becomes either short or excess, he shall compensate such sort or excess by adjusting the amount of tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned, subject to such conditions as may be prescribed.

(11)   A registered dealer shall apply fair and reasonable method to determine, for the purpose of this section, the extent to which the goods are sold, used, consumed or supplied, or intended to be sold, used, consumed or supplied. The Commissioner may, after giving the dealer am opportunity of being heard and for the reasons to be recorded in writing, reject the method adopted by the dealer and calculate the amount of tax credit as he deems fit.

(12)   Subject to the exceptions as may be prescribed by the rules, any dealer including the Commission agent shall not be permitted to transfer his tax credit to any other dealer or as the case may be, the principal.

Explanation. - For the purpose of this section the amount of tax credit on any purchase of goods shall not exceed the amount of tax actually paid or payable under this Act in respect of the same goods.

Section 12 - [Omitted]

[70][***]

Section 13 - Net amount of value Added Tax

The net amount of Value Added Tax for a tax period payable shall be determined after the adjustment of tax credit in the manner as may be prescribed.

Section 14 - [Omitted]

[71][***]

Section 14A - [Omitted]

[72][***]

[73][14A. Composition of tax on works contract.--

(1)     Notwithstanding anything contained in this Act, the Commissioner may, in such circumstances and subject to such conditions as may be prescribed, permit every dealer referred to in sub-clause (f) of clause (10) of section 2 to pay at his option in lieu of the amount of tax leviable from him under this Act in respect of any period, a lump sum tax by way of composition at such rate as may be fixed by the State Government by notification in the Official Gazette having regard to the incidence of tax on the nature of the goods involved in the execution of the total value of the works contract.

(2)     The provisions of sub-sections (3) and (4) of section 14 shall apply mutatis mutandis to a dealer who is permitted under sub-section (1) to pay lump sum tax by way of composition.

(3)     Where any dealer has opted for composition of tax under the earlier law and commenced the work in pursuance of any specified works contract prior to the appointed day and such work is not completed before the appointed day, such dealer shall pay the tax for the remaining work in accordance with the provisions of this Act.]"

Section 14B - [Omitted]

[74][***]

Section 14C - [Omitted]

[75][***] 

Section 15 - Burden of Proof

The burden of proof shall lie on a dealer who claims that he is not liable to pay tax under this Act in respect of any sale effected by him or is eligible for a tax credit under section 11 and section 12.

Section 16 - Commercial tax authorities and jurisdiction

(4)     For carrying out the purposes of this Act, the State Government shall appoint an officer to be called the Commissioner of Commercial Tax.

[76][Provided that, the officers appointed under the Gujarat Goods and Services Tax Act, 2017 (Guj. 25 of 2017) shall be deemed to be the officers appointed under the provisions of this Act.]

(5)     To assist the Commissioner in the execution of his functions under this Act, the State Government may appoint Special Commissioners, Additional Commissioners and such number of-

(a)      Joint Commissioners,

(b)      Deputy Commissioners,

(c)      Assistant Commissioners,

(d)      Commercial Tax Officers, and

(e)      Other officers and persons, and give them such designations, as the State Government thinks necessary.

[77][Provided that, the officers appointed under the Gujarat Goods and Services Tax Act, 2017 (Guj. 25 of 2017) shall be deemed to be the officers appointed under the provisions of this Act to assist the Commissioner in the executions under this sub-section.]

(6)     The Commissioner shall have jurisdiction over the whole of the State, the Special Commissioner and an Additional Commissioner shall have jurisdiction over the whole of the State or where the State Government so directs, over any local area thereof. All other officers shall have jurisdiction over the whole of the State or over such local areas as the State Government may specify.

(7)     The Commissioner shall have and exercise all the powers and perform all the duties, conferred or imposed on him by or under this Act. The Special Commissioner and an Additional Commissioner shall, save as otherwise directed by the State Government, have and exercise within his jurisdiction all the power and perform all the duties, conferred or imposed on the Commissioner by or under this Act.

(8)     A Joint Commissioner shall have and exercise, in the area within his jurisdiction all the powers and shall perform all the duties conferred or imposed on the Commissioner by or under this Act. The Commissioner may, by order published in the Official Gazette, direct that any or all Joint Commissioners shall not exercise such powers or perform such duties as are specified in the order, and there-upon such Joint Commissioner or, as the case may be, all Joint Commissioners, shall cease to exercise those powers and perform those duties. The Commissioner may in like manner revoke any such direction and thereupon the powers or duties exercisable or performable by such Joint Commissioner, or as the case may be, all Joint Commissioners before such direction was issued, shall be restored to him or them.

(9)     The Deputy Commissioners, Assistant Commissioners, Commercial Tax Officers and other officers shall within their jurisdiction exercise such of the powers and perform such of the duties of the Commissioner under this Act, as the Commissioner may, subject to such conditions and restrictions as the State Government may by general or special order impose, by order in writing delegate to them either generally or as respects any particular matter or class of matters.

(10)   The State Government may, subject to such restriction and condition as it may impose by notification in the Official Gazette, delegate to the Commissioner the power (not being powers relating to the appointment of Special Commissioner, Additional Commissioner or Joint Commissioner), conferred on the State Government by sub-section (2) and (3).

(11)   All officers and persons appointed under sub-section (2) shall be subordinate to the Commissioner; and the subordination of officers (Other than the Commissioner), and of persons amongst themselves shall be such as may be prescribed.

Section 17 - Power to transfer proceedings

(1)     The Commissioner may, after due notice to the concerned parties and by order in writing, transfer any proceedings or class of proceedings under any provision of this Act from himself to any other any officer and he may likewise transfer any such proceedings (including proceedings already transfer under this section) from one such officer to another or to himself.

(2)     The officer to whom any proceedings is transferred under sub-section (1) shall proceed to dispose it of as if it had been initiated by himself.

(3)     Transfer of proceeding shall not render necessary re-issue of any notice already issued before such transfer and the officer to whom the proceeding is transferred may continue it from the stage at which it was left by the officer whom it was transferred.

Explanation -- For the purposes of this section, "proceedings" in relation to any person whose name is specified in any order issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date of such order or which may have been completed on or before such date, and includes also such proceedings which may be commenced after the date of such order in respect of any year.

Section 18 - Disputes regarding jurisdiction of tax authority

(1)     No person shall be entitled to call in question the jurisdiction of any tax authority appointed under section 16, after the expiry of thirty days from the date of receipt by that person of any notice issued by such tax authority under this Act.

(2)     An objection as to the jurisdiction of any such tax authority may be raised within the periods aforesaid by submitting a memorandum to that tax authority who shall refer the question to the Commissioner and the Commissioner shall after giving the person raising the objection, a reasonable opportunity of being heard, make an order determining the question of jurisdiction and his decision in this behalf shall be final.

Section 19 - Tribunal

(1)     The State Government shall constitute a Tribunal consisting of as many as members as it thinks fit to discharge the functions conferred on the Tribunal by or under this Act.

(2)     The State Government shall constitute one of the members of the Tribunal to be president thereof.

(3)     The qualification of the members consisting the Tribunal shall be such as may be prescribed and a member shall hold office for such period as State Government may fix.

(4)     The State Government may terminate the appointment of any member of the Tribunal before the expiry of term of his office, if such member, --

(a)      is adjudged an insolvent, or

(b)      engages during his term of office in any paid employment outside the duties of his office, or

(c)      is or becomes in any way concerned or interested in any contract or agreement by or on behalf of the State Government or participates in any way in the profit thereof or in any benefit or emoluments arising therefrom otherwise than as a member, or

(d)      is in the opinion of the State Government, unfit to continue in office by reason of infirmity of mind or body, or

(e)      is convicted of an offence involving moral turpitude.

(5)     Any vacancy of a member of the Tribunal shall be filled up by the State Government as soon as practicable.

(6)     The functions of the Tribunal may be discharged by one or more benches thereof constituted in accordance with the regulation made under sub-section (9).

(7)     If the members of the tribunal or a Bench thereof are divided, the decision shall be the decision of majority, if there be 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 of the Tribunal for hearing on such point or points to one or more of the other members of the Tribunal, and such point or points shall be decided according to the majority of the members of the Tribunal who heard the case including those who first heard it..

(8)     Subject to such conditions and limitations as may be prescribed, the Tribunal shall have power to award cost and the amount of such costs shall be recoverable from the person ordered to pay the same as an arrears of land revenue.

(9)     Subject to the previous sanction of the State Government, the Tribunal shall, for the purpose of regulating its procedure (Including the place or places at which the Tribunal or the Benches thereof shall sit) and the disposal of its business, make regulations consistent with the provisions of this Act and the rules.

(10)   The regulations made under sub-section (9) shall be published in the Official Gazette.

Section 20 - Powers of Tribunal and Commissioner

(1)     In discharging their functions under this Act, the Tribunal and the Commissioner shall have all the powers of a civil count for the purpose of?

(a)      receiving of proof of facts on affidavit;

(b)      summoning and enforcing the attendance

(c)      compelling the production of documents ;and

(d)      issuing commissions for the examination of witnesses

(2)     In the case of any affidavit to be made for the purposes of this Act, any officer appointed by the Tribunal or the Commissioner may administer the oath to the dependent.

Section 21 - Registration

(1)     No dealer shall, while being liable to pay tax under this Act, carry on business as a dealer unless he possesses a valid certificate of registration, as provided by this Act.

Provided that the provisions of this sub-section shall not be deemed to have been contravened if the dealer having applied for such registration as provided in this section, within the prescribed time carries on such business.

[78][***]

(3) ???Every dealer registered by sub-section (1) to possess a certificate of registration, shall apply in such form, to such authority and in such manner as may be prescribed.

(4) ???If the prescribed authority is satisfied that an application for registration is in order, it shall register the applicant and issue him a certificate of registration in the prescribed from.

(5) ??The prescribed authority may, after considering any information furnished under the provisions of this Act or otherwise received, amend from time to time, any certificate of registration

(6) ??When a dealer has been subjected or is liable to be subjected to a penalty or is convicted in respect of contravention of the provisions of sub-section (1), the prescribed authority shall register such dealer, if such a dealer is not a registered dealer, and issue him a certificate of registration Such registration shall take effect from the date of the issue of the certificate in every respect as if it had been issued under sub-section (3) on an application of the dealer,

(7) ?Where --

(a)      any business, in respect of which a certificate of registration has been issued under this section, has been discontinued or, transferred or

(b)      total turnover and taxable turnover of a dealer during the preceding year has not exceeded the thresholds of turnover specified in sub-section (1) of section 3,-

and the dealer applies in the prescribed manner for cancellation of his registration, the prescribed authority shall cancel the registration with effect from such date as it may fix in accordance with the rules.

[79][(7A) Where the dealer changes the place of his business situated in the jurisdiction of one authority to a different place falling under the jurisdiction of another authority, such dealer shall apply for cancellation of registration to that authority which has granted the registration and shall simultaneously apply for registration to another authority within whose jurisdiction the changed place of business is situated.

(8) ??Where the Commissioner is satisfied that any business in respect of which a certificate of registration has been issued under this section, has been discontinued and the dealer has failed to apply as aforesaid for cancellation of registration, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, cancel the registration with effect from such date as he may fix to be the date from which the business has been discontinued.

(9) ???The cancellation of a certificate of registration on an application of the dealer or otherwise, shall not affect the liability of the dealer to pay the tax, penalty or interest due for any period prior to the date of cancellation whether such tax, penalty or interest is assessed before the date of cancellation but remains unpaid, or is assessed thereafter.

Section 22 - Voluntary Registration

(1)     A dealer having a fixed or regular place of business in the State and who is not required to be registered under section 21, may apply in the prescribed manner for the certificate of registration to the authority prescribed for the purpose under section 21.

(2)     If the prescribed authority is satisfied that the application made by the dealer under sub-section (1) is in order, it may grant him a certificate of registration in the prescribed form:

Provided that no certificate of registration under this section shall be granted to the dealer unless he deposits an amount of rupees twenty-five thousand in the Government treasury. The dealer may, in his return to be furnished in accordance with section 29, adjust the amount so deposited against his liability to pay tax, penalty or interest payable under this Act.

(3)     The provisions of sub-section (4) and clause (a) of sub-section (7)and sub-section (8) of section 21 shall apply in respect of the amendment or cancellation of registration granted under this section.

(4)     Notwithstanding any thing contained this Ad:, every dealer who has been registered under sub-section (2) shall, so long as his registration remains in force, be liable to pay the tax under this Act.

Section 23 - [Omitted]

[80][***]

Section 24 - Non transferability of registration

Save as otherwise provided in section 25, a certificate of registration shall be personal to the dealer to whom it is granted and shall not be transferable.

Section 25 - Continuation of certificate of registration of Dissolved firm

Where, --

(a)      a registered dealer is a firm and on the death of any partner of such firm, the firm stands dissolved, and

(b)      the person who immediately before such dissolution was a partner of the firm carries on business of the dissolved firm, as proprietor, then

(i)       until the certificate of registration granted to the firm prior to its dissolution is amended under sub-section (ii), the certificate of registration granted to the firm prior to its dissolution shall, subject to section 27, continue to be valid for a period of six months;

(ii)      on an application made by such person within a period of six months from the date of dissolution of the firm for amendment of the certificate of registration and on information being furnished in the manner required by section 26, the certificate of registration granted to the firm prior to its dissolution shall be amended accordingly.

Section 26 - Amendment of certificate of registration

(1)     Where a registered dealer-

(a)      transfers his business, in whole or in part, or transfer his place of business, by sale, lease, leave or license, hire or in any other manner whatsoever, or otherwise disposes of his business or any part thereof or effects or comes to know of any other change in the ownership of the business;

(b)      discontinues his business or changes the place of business thereof or opens a new place of business, or temporarily closes the business for a period more than thirty days;

(c)      Changes the name, style constitution or nature of his business; or

(d)      enters into partnership or other association in regard to his business or effects any changes in the ownership of the business, he shall, within the prescribed time inform the prescribed authority accordingly; and if any such dealer dies, his legal representative shall inform of such death or where any such dealer is a firm and there is any change in the constitution of the firm or the firm is dissolved, every person who has a partner who was a partner thereof, shall in like manner inform the said authority of the change in the constitution or as the case may be, dissolution of the firm.

(2)     The Commissioner may, after considering information furnished under this Act or otherwise received and after making such inquiry as he may deem fit, amend from time to time, any certificate of registration;

Provided that Commissioner shall, before amending on his own motion a certificate of registration, give the dealer affected by such amendment an opportunity of being heard.

(3)     An amendment of the certificate of registration made under sub-section (1) or (2) shall take effect from the date of contingency, which necessitates the amendment, whether or not information in that behalf is furnished within the time prescribed under sub-section (1).

(4)     Any amendment of a certificate of registration under this section shall be without prejudice to any liability for tax, interest or penalty or for any prosecution for an offence under this Act.

(5)     If a dealer fails, without sufficient cause, to comply with the provisions of sub-section (1), the Commissioner may after giving the dealer a reasonable opportunity of being heard, direct him to pay, by way of penalty a sum of rupees one hundred per day of default subject to a maximum of rupees five thousand.