Section 3- The Government shall, by notification, appoint the following classes of officers for the purposes of this Act, namely:
(b) Chief Commissioners of Central Tax or Directors General of Central Tax,
(c) Principal Commissioners of Central Tax or Principal Additional Directors General of Central Tax,
(d) Commissioners of Central Tax or Additional or Additional Directors General of Central Tax,
(e) Additional Commissioner of Central Tax or Additional Directors of Central Tax,
(f) joint Commissioners of Central Tax or Joint Directors or Central Tax,
(g) Deputy Commissions of Central Tax or Deputy Directors of Cental 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 (1 to 1944) shall be deemed to be the officers appointed under the provisions of this Act,
Section 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, authorize any officer referred to in clause (a) to (h) of section 3 to appoint officers of cental tax below the rank of Assistant Commissioner of central tax for the administration of this Act.
Section 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 on him under this Act.
(2) An officer of cental tax may exercise the powers and discharge the duties conferred or imposed under this Act on any 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 ad discharge the duties conferred or imposed on any other officer of central tax.
Section 6. Authorization of officers of
(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 authorized to be 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, h shall also issue an order under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as authorized 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 Sate 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.
Section 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, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.
(a1) the activities or transactions, by a person, other than an individual, to its members or constituents or vice- versa, for cash, deferred payment or other valuable consideration.
Explanation: - For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or odder of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another;
(b) import of services for a consideration whether or not in their course or furtherance of business and
(c) the activities specified in Schedule I, made or agreed to be made without a consideration 3[****]
(d) 4[****]
5[(IA) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (I), they shall be treated either as supply of goods or supply of services as referred to in Schedule-I]
(2) Notwithstanding anything contained in sub-section(I), -
(a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local Authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council,
Shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of 6[sub-section (I), (IA) and (2)], the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as -
(a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods.
(b) a supply of services and not as supply of goods
Section 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 0f 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.
Section 9. Levy and collection. -
(1) Subject to the provisions of sub-section (2), there shall be levied a tax Calles the central goods and services tax on intra-state supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption 2[ and un-denatured extra Neutra alcohol or rectified spirit used for manufacture of alcoholic liquor, for human consumption], on the value determined under section I 5 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.
(4) 1[The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both ]
(5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, ant 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, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax.
Section 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, 1[in lieu of the tax payable by him under sub-section(1) of section9, an amount of tax calculated at such rate] as may be prescribed, but not exceeding,-
(a) one percent of the turnover in State or turnover in Union territory in case of a manufacturer.
(b) two and a half percent 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 percent 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 rupee to such higher amount, not exceeding 2[one crore and fifty lakh rupees], as may be recommended by the Council:
3[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 ren percent of turnover in a state or Union territory in the preceding financial year or five lakh rupees, whichever is higher]
4[Explanation. - For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loan or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for deterring the value of turnover in a State or Union territory].
(2) The registered person shall be eligible to opt under sub-section (1) if: -
5[(a) save as provided in sub-section (1), he is not engaged in the supply of services]
(b) he is not engaged in making any supply of 12[****] 6[services] which are not leviable to tax under this Act.
(c) he is not engaged in making any inter-state outward supplies of goods 7[or services];
(d) he is not engaged in making any supply of goods 8[or services] through an electronic commerce operator who is required to collect tax at source under section 52; 9[****]
(e) he is not a manufacture of such goods as may be notified by the Government on the recommendations of the 10[Council; and]
11[(f) he is neither a casual taxable person nor 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 (43 of 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]
(3) The option availed of by a registered person under sub-section (1) 11[or subsection (2A), as the case may be,] shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub- section (1) 11[or sub-section (2A), as the case may be.]
(4) A taxable person to whom the provisions of sub-section (1) 11[or, as the case may be, sub-section (2A)] 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) 11[or sub-section (2A), as the case may be,] 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 14[or section74A] shall, mutatis mutandis, apply for determination of tax and penalty.
11[ 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 days of April of financial year up to the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advance 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.]
Section 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, 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 form 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.
1[Section 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 central tax (including non-levy thereof) on any supply of goods or services or both; and
(b) such supplies were, or are, liable to, ----------------------------------------------
(i) central tax. in case where according to the said practice, central tax was not, or is not being, levied, or
(ii) a higher amount of central 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 central tax payable on such supplies, or , as the case may be, the cental 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 central tax was not, or is not being levied, or was, or is being, short-levied, in accordance with the said practice.]
Section 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 1[****] 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 to 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 dated, 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 date on which the payment is debited in his bank account, whichever is earlier; or
(c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier:
(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 the 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 related 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.
Section 13. Time of Supply of Services. -
(1) The liability to pay tax on services shall arise at the time of supply, 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 1[****] section 31 or the date of receipt of payment, whichever is earlier; or
(b) the date of provision of services, if the invoice is not issued within the period prescribed under 1[****] 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 clause (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 pay payment is debited in his bank account, whichever is earlier; or (b) the date immediately following sixty days from the date of issued of invoice or any other document, by whatever name called, in lieu thereof 2[by the supplier, in cases where invoice is required to be issued by the supplier; or]:
3[(c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the recipient:]
Provided that where it is not possible to determine the time of supply under clause (a) or clause (b) 3[or clause (c)], 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.
(4) In case of supply of voucher 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 tax 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.
*Section 14. Charge in rate of tax in respect of supply of goods or services
Notwithstanding anything contained in section 12 or section13, 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 of tax, -
(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 of supply 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 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 al account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
