[5
of 2025] [21st
January 2025] An Act further to amend the
Chhattisgarh Goods and Services Tax Act, 2017 (No. 7 of 2017). Be it enacted by the
Chhattisgarh Legislature in the Seventy-fifth Year of the Republic of India, as
follows:- (1)
This Act may be called the Chhattisgarh Goods
and Services Tax (Amendment) Act, 2024. (2)
It shall come into force on such date the
State Government may, by notification from the date of publication of Official
Gazette, appoint: Provided that different
dates may be appointed for different provisions of this Act and any reference
in any such provision to the commencement of this Act shall be construed as a
reference to the coming into force of that provision. In the Chhattisgarh Goods
and Services Tax Act, 2017 (No. 7 of 2017) (hereinafter referred to as the
Principal Act), in sub-section (1) of Section 9, after the protasis
"alcoholic liquor for human consumption", the protasis ",
un-denatured extra neutral alcohol and rectified spirit used for manufacture of
alcoholic liquor, for consumption" shall be inserted. In sub-section (5) of
Section 10 of the Principal Act, after the words and figures "Section 73
or Section 74", the words and figure "or Section 74A" shall be
inserted. After Section 11 of the Principal
Act, the following Section shall be added, namely:- "11A.Power
not to recover Goods and Services Tax not levied or short-levied as a result of
general practice- Notwithstanding anything
contained in this Act, if the Government is satisfied that - (a)
a practice was, or is, generally prevalent
regarding levy of state tax (including non-levy thereof) on any supply of goods
or services or both; and (b)
such supplies were, or are, liable to,- (i)
state tax, in cases where according to the
said practice, state tax was not, or is not being, levied, or (ii)
a higher amount of state tax than what was,
or is being, levied, in accordance with the said practice, the Government may,
on the recommendation of the Council, by notification in the Official Gazette,
direct that the whole of the state tax payable on such supplies, or, as the
case may be, the state tax in excess of that payable on such supplies, but for
the said practice, shall not be required to be paid in respect of the supplies
on which the state tax was not, or is not being levied, or was, or is being,
short-levied, in accordance with the said practice." In sub-section (3) of
Section 13 of the Principal Act,- (i)
in clause (b), for the words "by the
supplier:", the words "by the supplier, in cases where invoice is
required to be issued by the supplier; or" shall be substituted; (ii)
after clause (b), the following clause shall
be inserted, namely:- "(c)
the date of issue of invoice by the recipient, in cases where invoice is to be
issued by the recipient;" (iii)
in the first proviso, after the words and
symbol "or clause (b)", the words and symbol "or clause
(c)" shall be inserted. After sub-section (4) of
Section 16 of the Principal Act, with effect from the 1st day of July, 2017,
the following subsections shall be added, namely:- "(5)
Notwithstanding anything contained in sub-section (4), in respect of an invoice
or debit note for supply of goods or services or both pertaining to the
Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person
shall be entitled to take input tax credit in any return under Section 39 which
is filed up to the thirtieth day of November, 2021. (6)
Where registration of a registered person is cancelled under Section 29 and
subsequently the cancellation of registration is revoked by any order, either
under Section 30 or pursuant to any order made by the Appellate Authority or
the Appellate Tribunal or court and where a availment of input tax credit in
respect of an invoice or debit note was not restricted under sub-section (4) on
the date of order of cancellation of registration, the said person shall be
entitled to take the input tax credit in respect of such invoice or debit note
for supply of goods or services or both, in a return under Section 39,- (i)
filed up to thirtieth day of November
following the financial year to which such invoice or debit note pertains or
furnishing of the relevant annual return, whichever is earlier; or (ii)
for the period from the date of cancellation
of registration or the effective date of cancellation of registration, as the
case may be, till the date of order of revocation of cancellation of
registration, where such return is filed within thirty days from the date of
order of revocation of cancellation of registration, whichever is later: Provided that no refund
shall be made of all the tax paid or the input tax credit reversed, which would
not have been so paid, or not reversed, had Section 6 been in force at all
material times." In clause (i) of sub-section
(5) of Section 17 of the Principal Act, for the words and figures
"Sections 74, 129 and 130", the words and figures "Section 74 in
respect of any period up to Financial Year 2023-24" shall be substituted. In Section 21 of the
Principal Act, after the words and figures "Section 73 or Section
74", the words and figures "or Section 74A" shall be inserted. After the proviso of
sub-section (2) of Section 30 of the Principal Act, the following proviso shall
be inserted, namely:- "Provided further that
such revocation of cancellation of registration shall be subject to such
conditions and restrictions, as may be prescribed." In Section 31 of the
Principal Act,- (i)
in clause (f) of sub-section (3), after the
words and figure "of Section 9 shall", the words, ", within the
period as may be prescribed," shall be inserted; (ii)
after clause (g) of sub-section (3), the
following Explanation shall be inserted, namely:- "Explanation.- For the
purposes of clause (f), the expression "supplier who is not
registered" shall include the supplier who is registered solely for the
purpose of deduction of tax under Section 51." In sub-section (6) of
Section 35 of the Principal Act, after the words and figures "Section 73
or Section 74", the words and figures "or Section 74A" shall be
inserted. For sub-section (3) of
Section 39 of the Principal Act, the following sub-section shall be
substituted, namely:- "(3)
Every registered person required to deduct tax at source under Section 51 shall
electronically furnish a return for every calendar month of the deductions made
during the month in such form and manner and within such time as may be
prescribed: Provided that the said
registered person shall furnish a return for every calendar month whether or
not any deductions have been made during the said month." In clause (c) of sub-section
(8) of Section 49 of the Principal Act, after the words and figures
"Section 73 or Section 74", the words and figures "or Section
74A" shall be inserted. In the proviso of
sub-section (1) of Section 50 of the Principal Act, after the words and figures
"Section 73 or Section 74", the words and figures "or Section
74A" shall be inserted. In sub-section (7) of
Section 51 of the Principal Act, after the words and figures "Section 73
or Section 74", the words and figure "or Section 74A" shall be
inserted. In Section 54 of the
Principal Act,- (i)
second proviso of sub-section (3) shall be
omitted; (ii)
after sub-section (14) and before the
Explanation, the following subsection shall be inserted, namely:- "(15)
Notwithstanding anything contained in this section, no refund of unutilised
input tax credit on account of zero rated supply of goods or of integrated tax
paid on account of zero rated supply of goods shall be allowed where such zero
rated supply of goods is subjected to export duty." In sub-section (3) of
Section 61 of the Principal Act, after the words and figures "Section 73
or Section 74", the words and figure "or Section 74A" shall be
inserted. In sub-section (1) of
Section 62 of the Principal Act, after the words and figures "Section 73
or Section 74", the words and figure "or Section 74A" shall be
inserted. In Section 63 of the
Principal Act, after the words and figures "Section 73 or Section
74", the words and figure "or Section 74A" shall be inserted. In sub-section (2) of
Section 64 of the Principal Act, after the words and figures "Section 73
or Section 74", the words and figure "or Section 74A" shall be
inserted. In sub-section (7) of Section
65 of the Principal Act, after the words and figures "Section 73 or
Section 74", the words and figure "or Section 74A" shall be
inserted. In sub-section (6) of
Section 66 of the Principal Act, after the words and figures "Section 73
or Section 74", the words and figure "or Section 74A" shall be
inserted. After sub-section (1) of
Section 70 of the Principal Act, the following sub-section shall be inserted,
namely:- "(1A)
All persons summoned under subsection (1) shall be bound to attend, either in
person or by an authorised representative, as such officer may direct, and the
person so appearing shall state the truth during examination or make statements
or produce such documents and other things as may be required." In Section 73 of the
Principal Act,- (i)
in the marginal heading, after the words
"Determination of tax", the words and figures ", pertaining to
the period up to Financial Year 2023-24," shall be inserted; (ii)
after sub-section (11), the following
sub-section shall be added, namely:- "(12)
The provisions of this section shall be applicable for determination of tax
pertaining to the period up to Financial Year 2023-24." In Section 74 of the
Principal Act,- (i)
in the marginal heading, after the words
"Determination of tax", the words and figures, "pertaining to
the period up to Financial Year 2023-24," shall be inserted; (ii)
after sub-section (11) and before Explanation
1, the following subsection shall be inserted, namely:- "(12)
The provisions of this section shall be applicable for determination of tax
pertaining to the period up to Financial Year 2023-24." (iii)
the Explanation 2 shall be omitted. After Section 74 of the
Principal Act, the following Section shall be added, namely. "74A.
Determination of tax not paid or short paid or erroneously refunded or input
tax credit wrongly availed or utilised for any reason pertaining to Financial
Year 2024-25 onward.- (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, 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: Provided that no notice
shall be issued, if the tax which has not been paid or short paid or
erroneously refunded or where input tax credit has been wrongly availed or
utilised in a financial year is less than one thousand rupees. (2)
The proper officer shall issue the notice
under sub-section (1) within forty-two months 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 forty-two
months from the date of erroneous refund. (3)
Where a notice has been issued for any period
under subsection (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 subsection (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 penalty in case where any tax which has
not been paid or short paid or erroneously refunded, or where input tax credit
has been wrongly availed or utilised,- (i)
For any reason, other than the reason of
fraud or any wilful-misstatement or suppression of facts to evade tax, shall be
equivalent to ten per cent. of tax due from such person or ten thousand rupees,
whichever is higher; (ii)
for the reason of fraud or any
wilful-misstatement or suppression of facts to evade tax shall be equivalent to
the tax due from such person. (6)
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. (7)
The proper officer shall issue the order
under sub-section (6) within twelve months from the date of issuance of notice
specified in sub-section (2): Provided that where the
proper officer is not able to issue the order within the specified period, the
Commissioner, or an officer authorised by the Commissioner senior in rank to
the proper officer but not below the rank of Joint Commissioner of State Tax,
may, having regard to the reasons for delay in issuance of the order under
subsection (6), to be recorded in writing, before the expiry of the specified
period, extend the said period further by a maximum of six months. (8)
The person chargeable with tax where 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, may,- (i)
before service of notice under sub-section
(1), pay the amount of tax along with interest payable under Section 50 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,
and the proper officer, on receipt of such information shall not serve any
notice under sub-section (1) or the statement under subsection (3), as the case
may be, in respect of the tax so paid or any penalty payable under the
provisions of this Act or the rules made there under; (ii)
pay the said tax along with interest payable
under Section 50 within sixty days of issue of show cause notice, and on doing
so, no penalty shall be payable and all proceedings in respect of the said
notice shall be deemed to be concluded. (9)
The person chargeable with tax, where 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, may,- (i)
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, and 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; (ii)
pay the said tax along with interest payable
under Section 50 and a penalty equivalent to twenty-five per cent, of such tax
within sixty days of issue of the notice, and on doing so, all proceedings in
respect of the said notice shall be deemed to be concluded; (iii)
pay the tax along with interest payable
thereon under Section 50 and a penalty equivalent to fifty per cent, of such
tax within sixty days of communication of the order, and on doing so, all
proceedings in respect of the said notice shall be deemed to be concluded. (10)
Where the proper officer is of the opinion
that the amount paid under clause (i) of subsection (8) or clause (i) of
sub-section (9) 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. (11)
Notwithstanding anything contained in clause
(i) or clause (ii) of sub-section (8), penalty under clause (i) of sub-section
(5) 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. (12)
The provisions of this section shall be
applicable for determination of tax pertaining to the Financial Year 2024-25
onwards. Explanation 1.-For the
purposes of 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 this section, the
proceedings against all the persons liable to pay penalty under Sections 122
and 125 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 there under, or failure to furnish any information on
being asked for, in writing, by the proper officer." In Section 75 of the
Principal Act,- (i)
in sub-section (1), after the word and figure
"Section 74", the words, figures and symbol "or sub-section (2)
and (7) of Section 74A" shall be inserted; (ii)
after sub-section (2), the following
sub-section shall be inserted, namely:- "(2A)
Where any Appellate Authority or Appellate Tribunal or court concludes that the
penalty under clause (ii) of sub-section (5) of Section 74A is not sustainable
for the reason that the charges of fraud or any willful-misstatement or
suppression of facts to evade tax has not been established against the person
to whom the notice was issued, the penalty shall be payable by such person,
under clause (i) of sub-section (5) of Section 74A." (iii)
for sub-section (10), the following
sub-section shall be substituted, namely:- "(10)
The adjudication proceedings shall be deemed to be concluded, if the order is
not issued within the period specified in sub-section (10) of Section 73 or in
sub-section (10) of Section 74 or in subsection (7) of Section 74A."; (iv)
in sub-section (11), after the word and
figure "Section 74", the words, figures and symbol "or
sub-section (7) of Section 74A" shall be inserted; (v)
in sub-section (12), after the words and
figures "Section 73 or Section 74", the words and figure "or
Section 74A" shall be inserted; (vi)
in sub-section (13), after the words and
figures "Section 73 or Section 74", the words and figure "or
Section 74A" shall be inserted. In Explanation of
sub-section (1) of Section 104 of the Principal Act, after the word and figure
"Section 74", the words, figures and symbol "or subsection (2)
and (7) of Section 74A" shall be inserted. In Section 107 of the
Principal Act,- (i)
in proviso of clause (b) of subsection (6),
for the word "twenty-five", the word "twenty" shall be
substituted; (ii)
in the second proviso of subsection (11),
after the words and figures "Section 73 or Section 74", the words and
figure "or Section 74A" shall be inserted. In Section 112 of the
Principal Act,- (i)
in sub-section (1), after the protasis
"from the date on which the order sought to be appealed against is
communicated to the person preferring the appeal", the protasis "; or
the date, as may be notified by the Government, on the recommendations of the
Council, for filing appeal before the Appellate Tribunal under this Act,
whichever is later." shall be inserted; (ii)
in sub-section (3), after the protasis
"from the date on which the said order has been passed", the protasis
";or the date, as may be notified by the Government, on the recommendations
of the Council, for the purpose of filing application before the Appellate
Tribunal under this Act, whichever is later," shall be inserted; (iii)
in sub-section (6), after the protasis and
figure "after the expiry of the period referred to in sub-section
(1)", the protasis and figure "or permit the filing of an application
within three months after the expiry of the period referred to in sub-section
(3)" shall be inserted; (iv)
in clause (b) of sub-section (8),- (a)
for the words "twenty per cent.",
the words "ten per cent." shall be substituted; (b)
for the words "fifty crore rupees",
the words "twenty crore rupees" shall be substituted. In sub-section (IB) of
Section 122 of the Principal Act, for the protasis "Any electronic
commerce operator who", the protasis and figures "Any electronic
commerce operator, who is liable to collect tax at source under Section
52," shall be substituted. In Section 127 of the
Principal Act, after the words and figures "Section 73 or Section
74", the words and figures "or Section 74A" shall be inserted. After Section 128 of the
Principal Act, the following Section shall be added, namely:- 128A.
Waiver of interest or penalty or both relating to demands raised under Section
73, for certain tax periods.- (1)
Notwithstanding anything to the contrary
contained in this Act, where any amount of tax is payable by a person
chargeable with tax in accordance with,- (a)
a notice issued under sub-section (1) of
Section 73 or a statement issued under sub-section (3) of Section 73, and where
no order under sub-section (9) of Section 73 has been issued; or (b)
an order passed under sub-section (9) of
Section 73, and where no order under sub-section (11) of Section 107 or
sub-section (1) of Section 108 has been passed; or (c)
an order passed under subsection (11) of
Section 107 or sub-section (1) of Section 108, and where on order under
subsection (1) of Section 113 has been passed, pertaining to the period from
1st July, 2017 to 31st March, 2020, or a part thereof, and the said person pays
the full amount of tax payable as per the notice or statement or the order
referred to in clause (a), clause (b) or clause (c), as the case may be, on or
before the date, as may be notified by the Government on the recommendations of
the Council, no interest under Section 50 and penalty under this Act, shall be
payable and all the proceedings in respect of the said notice or order or
statement, as the case may be, shall be deemed to be concluded, subject to such
conditions as may be prescribed: Provided that where a notice
has been issued under sub-section (1) of Section 74, and an order is passed or
required to be passed by the proper officer in pursuance of the direction of
the Appellate Authority or Appellate Tribunal or a court in accordance with the
provisions of sub-section (2) of Section 75, the said notice or order shall be
considered to be a notice or order, as the case may be, referred to in clause
(a) or clause (b) of this subsection: Provided further that the
conclusion of the proceedings under this sub-section, in cases where an
application is filed under sub-section (3) of Section 107 or under subsection
(3) of Section 112 or an appeal is filed by an officer of state tax under
sub-section (1) of Section 117 or under sub-section (1) of Section 118 or where
any proceedings are initiated under subsection (1) of Section 108, against an
order referred to in clause (b) or clause (c) or against the directions of the
Appellate Authority or the Appellate Tribunal or the court referred to in the
first proviso, shall be subject to the condition that the said person pays the
additional amount of tax payable, if any, in accordance with the order of the
Appellate Authority or the Appellate Tribunal or the court or the Revisional
Authority, as the case may be, within three months from the date of the said
order: Provided also that where
such interest and penalty has already been paid, no refund of the same shall be
available. (2)
Nothing contained in sub-section (1) shall be
applicable in respect of any amount payable by the person on account of
erroneous refund. (3)
Nothing contained in sub-section (1) shall be
applicable in respect of cases where an appeal or writ petition filed by the
said person is pending before Appellate Authority or Appellate Tribunal or a
court, as the case may be, and has not been withdrawn by the said person on or
before the date notified under subsection (1). (4)
Notwithstanding anything contained in this
Act, where any amount specified under sub-section (1) has been paid and the
proceedings are deemed to be concluded under the said sub-section, no appeal
under sub-section (1) of Section 107 or sub-section (1) of Section 112 shall
lie against an order referred to in clause (b) or clause (c) of subsection (1),
as the case may be." After sub-section (2) of
Section 171 of the Principal Act, the following proviso and Explanation shall
be inserted, namely:- "Provided that the
Government may by notification, on the recommendations of the Council, specify
the date from which the said Authority shall not accept any request for
examination as to 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. Explanation 1.- For the
purposes of this sub-section, "request for examination" shall mean
the written application filed by an applicant requesting for examination as to
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. Explanation 2.- For the
purposes of this Section, the expression "Authority" shall include
the "Appellate Tribunal"." After paragraph 8 and before
Explanation-1 of Schedule-III of the Principal Act, the following paragraphs
shall be inserted, namely:- "9.
Activity of apportionment of coinsurance premium by the lead insurer to the
co-insurer for the insurance services jointly supplied by the lead insurer and
the co-insurer to the insured in co-insurance agreements, subject to the
condition that the lead insurer pays the central tax, the State tax, the Union
territory tax and the integrated tax on the entire amount of premium paid by
the insured. 10.Services
by insurer to the reinsurer for which ceding commission or the reinsurance
commission is deducted from reinsurance premium paid by the insurer to the
reinsurer, subject to the condition that the central tax, the State tax, the
Union territory tax and the integrated tax is paid by the reinsurer on the
gross reinsurance premium payable by the insurer to the reinsurer, inclusive of
the said ceding commission or the reinsurance commission."The Chhattisgarh Goods And Services Tax (Amendment) Act, 2024
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