The BIHAR GOODS AND SERVICES TAX ACT, 2017
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COMMERCIAL TAXES DEPARTMENT-BIHAR
In Association with
NTN
NATIONAL LAW BOOK PUBLICATIONS GHAZIABAD
email : [email protected]
website : www.gstlawsindia.com
DISCLAIMER :
The text provided here is only for information purposes. Please compare text
with original Gazette notification for legal purposes.
Sanjay Kumar Singh, IAS
Commissioner-cum-secretary
Commercial Taxes Department
Bihar, Patna
GOVERNMENT OF BIHAR
Commercial Taxes Department
Bihar,
‘Kar Bhawan’
Birchand Patel Path, East
Gardiner Road
Patna, Bihar – 800001
MESSAGE
The GST was implemented on 1 st July, 2017. Being a truly federal legislation, all the
elements of CGST Act and Rules and amendments thereof, get reflected as mirror
image in the corresponding state enactments. Slight, yet crucial, variations remain due
to difference in administrative structures and processes.
GST is dynamic, always trying to find sync with evolving business methods and
models. Amendments, therefore, are frequent. The updated and compiled versions of
the extant CGST Act and Rules alongwith all past history are availab le, but not that of
Bihar GST Act and Rules.
This long due work has been successfully completed by the officers of
Commercial Taxes Department, Bihar. I acknowledge the special contribution of Mr.
Pankaj Kumar Prasad, Special Commissioner, Mr. Aditya Nara yan, Additional
Commissioner, Mr. Ajitabh Mishra, Joint Commissioner and Mr. Anup Kumar,
Joint Commissioner who have burnt midnight oil in collecting, cleaning, gleaning,
sorting and sequencing texts to give a sleek and updated shape to an otherwise
labyrinthine document.
I hope the compiled and updated form of Bihar GST Act and Rules will help all
stakeholders, inter alia the taxpayers, officers, Chartered Accountants and lawyers.
Sanjay Kumar Singh
Commissioner-cum-secretary
Commercial Taxes Department
Bihar, Patna
7th of November 2025
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Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad
THE BIHAR GOODS AND SERVICES TAX ACT, 2017
(Bihar Act No. 12 of 2017)
CHAPTER I
PRELIMINARY
Section 1 Short title, extent and commencement 01
Section 2 Definitions 01
(1) Actionable claim 01
(2) Address of delivery 01
(3) Address on record 01
(4) Adjudicating authority 01
(5) Agent 02
(6) Aggregate turnover 02
(7) Agriculturist 02
(8) Appellate Authority 02
(9) Appellate Tribunal 02
(10) Appointed day 02
(11) Assessment 02
(12) Associated enterprises 02
(13) Audit 02
(14) Authorised bank 02
(15) Authorised representative 02
(16) Board 02
(17) Business 03
(18) Business Vertical [Omitted] 03
(19) Capital goods 04
(20) Casual taxable person 04
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(21) Central tax 04
(22) Cess 04
(23) Chartered accountant 04
(24) Commissioner 04
(25) Commissioner in the Board 04
(26) Common portal 04
(27) Common working days 04
(28) Company secretary 04
(29) Competent authority 04
(30) Composite supply 04
(31) Consideration 04
(32) Continuous supply of goods 05
(33) Continuous supply of services 05
(34) Conveyance 05
(35) Cost accountant 05
(36) Council 05
(37) Credit note 05
(38) Debit note 05
(39) Deemed exports 05
(40) Designated authority 05
(41) Document 05
(42) Draw back 05
(43) Electronic cash ledger 05
(44) Electronic commerce 05
(45) Electronic commerce operator 06
(46) Electronic credit ledger 06
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(47) Exempt supply 06
(48) Existing law 06
(49) Family 06
(50) Fixed establishment 06
(51) Fund 06
(52) Goods 06
(53) Government 06
(54) Goods and Services Tax (Compensation to
States) Act
06
(55) Goods and services tax practitioner 06
(56) India 06
(57) Integrated Goods and Services Tax Act 06
(58) Integrated tax 06
(59) Input 06
(60) Input service 07
(61) Input Service Distributor 07
(62) Input tax 07
(63) Input tax credit 07
(64) Intra-State supply of goods 07
(65) Intra-State supply of services 07
(66) Invoice or tax invoice 07
(67) Inward supply 07
(68) Job work 07
(69) Local authority 08
(70) Location of the recipient of services 08
(71) Location of the supplier of services 09
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(72) Manufacture 09
(73) Market value 09
(74) Mixed supply 09
(75) Money 09
(76) Motor vehicle 09
(77) Non-resident taxable person 09
(78) Non-taxable supply 09
(79) Non-taxable territory 09
(80) Notification 10
(80A) online gaming 10
(80B) online money gaming 10
(81) Other territory 10
(82) Output tax 10
(83) Outward supply 10
(84) Person 10
(85) Place of business 11
(86) Place of supply 11
(87) Prescribed 11
(88) Principal 11
(89) Principal place of business 11
(90) Principal supply 11
(91) Proper officer 11
(92) Quarter 11
(93) Recipient 11
(94) Registered person 11
(95) Regulations 11
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(96) Removal 12
(97) Return 12
(98) Reverse charge 12
(99) Revisional Authority 12
(100) Schedule 12
(101) Securities 12
(102) Services 12
(102A) Specified actionable claim 12
(103) State 12
(104) State tax 12
(105) Supplier 12
(106) Tax period 13
(107) Taxable person 13
(108) Taxable supply 13
(109) Taxable territory 13
(110) Telecommunication service 13
(111) The Central Goods and Services Tax Act 13
(112) Turnover in State or turnover in Union
territory
13
(113) Usual place of residence 13
(114) Union territory 13
(115) Union territory tax 14
(116) Union Territory Goods and Services Tax
Act
14
(116A) Unique Identification Marking 14
(117) Valid return 14
(117A) Virtual digital asset 14
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(118) Voucher 14
(119) Works contract 14
(120) Words and expressions used 14
CHAPTER II
ADMINISTRATION
Section 3 Officers under this Act 15
Section 4 Appointment of officers 15
Section 5 Powers of officers 15
Section 6 Authorisation of officers of central tax as proper
officer in certain circumstances
16
CHAPTER III
LEVY AND COLLECTION OF TAX
Section 7 Scope of supply 17
Section 8 Tax liability on composite and mixed supplies 18
Section 9 Levy and collection 18
Section 10 Composition levy 19
Section 11 Power to grant exemption from tax 22
Section 11A Power not to recover Goods and Services Tax
not levied or short levied as a result of General
Practice
23
CHAPTER IV
TIME AND VALUE OF SUPPLY
Section 12 Time of supply of goods 25
Section 13 Time of supply of services 26
Section 14 Change in rate of tax in respect of supply of
goods or services
28
Section 15 Value of taxable supply 28
CHAPTER V
INPUT TAX CREDIT
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Section 16 Eligibility and conditions for taking input tax
credit
31
Section 17 Apportionment of credit and blocked credits 33
Section 18 Availability of credit in special circumstances 37
Section 19 Taking input tax credit in respect of inputs and
capital goods sent for job work
38
Section 20 Manner of distribution of credit by Input
Service Distributor
39
Section 21 Manner of recovery of credit distributed in
excess
40
CHAPTER - VI
REGISTRATION
Section 22 Persons liable for registration 41
Section 23 Persons not liable for registration 42
Section 24 Compulsory registration in certain cases 42
Section 25 Procedure for registration 43
Section 26 Deemed registration 46
Section 27 Special provisions relating to casual taxable
person and non-resident taxable person
46
Section 28 Amendment of registration 46
Section 29 Cancellation or suspension of registration 47
Section 30 Revocation of cancellation of registration 49
CHAPTER- VII
TAX INVOICE, CREDIT AND DEBIT NOTES
Section 31 Tax invoice 50
Section 31A Facility of digital payment to recipient. 52
Section 32 Prohibition of unauthorised collection of tax 52
Section 33 Amount of tax to be indicated in tax invoice and
other documents
52
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Section 34 Credit and debit notes 52
CHAPTER VIII
ACCOUNTS AND RECORDS
Section 35 Accounts and other records 54
Section 36 Period of retention of accounts 55
CHAPTER- IX
RETURNS
Section 37 Furnishing details of outward supplies 56
Section 38 Communication of details of inward supplies
and input tax credit
57
Section 39 Furnishing of returns 59
Section 40 First return 63
Section 41 Availment of input tax credit 63
Section 42 Omitted 63
Section 43 Omitted 63
Section 43A Omitted 63
Section 44 Annual return 66
Section 45 Final return 67
Section 46 Notice to return defaulters 67
Section 47 Levy of late fee 67
Section 48 Goods and services tax practitioners 67
CHAPTER-X
PAYMENT OF TAX
Section 49 Payment of tax, interest, penalty and other
amounts
69
Section 49A Utilisation of input tax credit subject to certain
conditions
71
Section 49B Order of utilization of input tax credit 71
Section 50 Interest on delayed payment of tax 71
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Section 51 Tax deduction at source 72
Section 52 Collection of tax at source 73
Section 53 Transfer of input tax credit 76
Section 53A Transfer of certain amounts 76
CHAPTER XI
REFUNDS
Section 54 Refund of tax 77
Section 55 Refund in certain cases 82
Section 56 Interest on delayed refunds 82
Section 57 Consumer Welfare Fund 83
Section 58 Utilisation of Fund 83
CHAPTER- XII
ASSESSMENT
Section 59 Self assessment 84
Section 60 Provisional assessment 84
Section 61 Scrutiny of returns 84
Section 62 Assessment of non-filers of returns 85
Section 63 Assessment of unregistered persons 85
Section 64 Summary assessment in certain special cases 86
CHAPTER XIII
AUDIT
Section 65 Audit by tax authorities 87
Section 66 Special audit 87
CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
Section 67 Power of inspection, search and seizure 89
Section 68 Inspection of goods in movement 90
Section 69 Power to arrest 91
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Section 70 Power to summon persons to give evidence and
produce documents
91
Section 71 Access to business premises 92
Section 72 Officers to assist proper officers 92
CHAPTER XV
DEMANDS AND RECOVERY
Section 73 Determination of tax not paid or short paid or
erroneously refunded or input tax credit
wrongly availed or utilised for any reason other
than fraud or any wilful misstatement or
suppression of facts
93
Section 74 Determination of tax not paid or short paid or
erroneously refunded or input tax credit
wrongly availed or utilised by reason of fraud or
any wilful misstatement or suppression of facts
94
Section 74A Determination of tax not paid or short paid or
erroneously refunded or input tax credit
wrongly availed or utilised for any r eason
pertaining to Financial Year 2024-25 onward
96
Section 75 General provisions relating to determination of
tax
98
Section 76 Tax collected but not paid to Government 100
Section 77 Tax wrongfully collected and paid to Central
Government or State Government
101
Section 78 Initiation of recovery proceedings 101
Section 79 Recovery of tax 102
Section 80 Payment of tax and other amount in
instalments
104
Section 81 Transfer of property to be void in certain cases 104
Section 82 Tax to be first charge on property 104
Section 83 Provisional attachment to protect revenue in
certain cases
104
Section 84 Continuation and validation of certain recovery
proceedings
105
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CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
Section 85 Liability in case of transfer of business 106
Section 86 Liability of agent and principal 106
Section 87 Liability in case of amalgamation or merger of
companies
106
Section 88 Liability in case of company in liquidation 106
Section 89 Liability of directors of private company 107
Section 90 Liability of partners of firm to pay tax 107
Section 91 Liability of guardians, trustees, etc 107
Section 92 Liability of Court of Wards, etc 108
Section 93 Special provisions regarding liability to pay tax,
interest or penalty in certain cases
108
Section 94 Liability in other cases 109
CHAPTER XVII
ADVANCE RULING
Section 95 Definitions 111
95(a) Advance Ruling 111
95(b) Appellate Authority 111
95(c) Applicant 111
95(d) Application 111
95(e) Authority 111
95(f) National Appellate Authority 111
Section 96 Constitution of Authority for Advance Ruling 111
Section 97 Application for advance ruling 111
Section 98 Procedure on receipt of application 112
Section 99 Constitution of Appellate Authority for Advance
Ruling
113
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Section 100 Appeal to the Appellate Authority 113
Section 101 Orders of Appellate Authority 113
Section 101A Constitution of National Appellate Authority for
Advance Ruling
114
Section 101B Appeal to National Appellate Authority 114
Section 101C Order of National Appellate Authority 114
Section 102 Rectification of advance ruling 115
Section 103 Applicability of advance ruling 115
Section 104 Advance ruling to be void in certain
circumstances
116
Section 105 Powers of Authority, Appellate Authority and
National Appellate Authority
117
Section 106 Procedure of Authority, Appellate Authority and
National Appellate Authority
117
CHAPTER-XVIII
APPEALS AND REVISION
Section 107 Appeals to Appellate Authority 118
Section 108 Powers of Revisional Authority 120
Section 109 Appellate Tribunal 121
Section 110 Omitted 121
Section 111 Procedure before Appellate Tribunal 122
Section 112 Appeals to Appellate Tribunal 122
Section 113 Orders of Appellate Tribunal 124
Section 114 Omitted 125
Section 115 Interest on refund of amount paid for admission
of appeal
125
Section 116 Appearance by authorised representative 125
Section 117 Appeal to High Court 127
Section 118 Appeal to Supreme Court 128
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Section 119 Sums due to be paid notwithstanding appeal, etc 128
Section 120 Appeal not to be filed in certain cases 128
Section 121 Non appealable decisions and orders 129
CHAPTER XIX
OFFENCES AND PENALTIES
Section 122 Penalty for certain offences 130
Section 122A Penalty for failure to register certain machines used
in manufacture of goods as per special procedure
132
Section 122B Penalty for failure to comply with track and trace
mechanism
133
Section 123 Penalty for failure to furnish information return 133
Section 124 Fine for failure to furnish statistics 133
Section 125 General penalty 133
Section 126 General disciplines related to penalty 134
Section 127 Power to impose penalty in certain cases 134
Section 128 Power to waive penalty or fee or both 134
Section 128A Waiver of interest or penalty or both relating to
demands raised under section 73, for certain
tax periods
135
Section 129 Detention, seizure and release of goods and
conveyances in transit
136
Section 130 Confiscation of goods or conveyances and levy
of penalty
138
Section 131 Confiscation or penalty not to interfere with
other punishments
139
Section 132 Punishment for certain offences 139
Section 133 Liability of officers and certain other persons 141
Section 134 Cognizance of offences 142
Section 135 Presumption of culpable mental state 142
Section 136 Relevancy of statements under certain 142
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circumstances
Section 137 Offences by companies 143
Section 138 Compounding of offences 143
CHAPTER XX
TRANSITIONAL PROVISIONS
Section 139 Migration of existing taxpayers 145
Section 140 Transitional arrangements for input tax credit 145
Section 141 Transitional provisions relating to job work 148
Section 142 Miscellaneous transitional provisions 149
CHAPTER XXI
MISCELLANEOUS
Section 143 Job work procedure 153
Section 144 Presumption as to documents in certain cases 154
Section 145 Admissibility of micro films, facsimile copies of
documents and computer printouts as documents
and as evidence
154
Section 146 Common Portal 155
Section 147 Deemed exports 155
Section 148 Special procedure for certain processes 155
Section 148A Track and trace mechanism for certain goods 155
Section 149 Goods and services tax compliance rating 156
Section 150 Obligation to furnish information return 156
Section 151 Power to collect statistics 158
Section 152 Bar on disclosure of information 158
Section 153 Taking assistance from an expert 158
Section 154 Power to take samples 158
Section 155 Burden of proof 159
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Section 156 Persons deemed to be public servants 159
Section 157 Protection of action taken under this Act 159
Section 158 Disclosure of information by a public servant 159
Section 158A Consent based sharing of information furnished
by taxable person
160
Section 159 Publication of information in respect of persons
in certain cases
161
Section 160 Assessment proceedings, etc., not to be invalid on
certain grounds
161
Section 161 Rectification of errors apparent on the face of
record
162
Section 162 Bar on jurisdiction of civil courts 162
Section 163 Levy of fee 162
Section 164 Power of Government to make rules 162
Section 165 Power to make regulations 163
Section 166 Laying of rules, regulations and notifications 163
Section 167 Delegation of powers 163
Section 168 Power to issue instructions or directions 163
Section 168A Power of Government to Extend Time in Special
Circumstances
163
Section 169 Service of notice in certain circumstances 164
Section 170 Rounding off of tax, etc 164
Section 171 Anti profiteering measure 165
Section 172 Removal of difficulties 166
Section 173 Amendment of certain Acts 166
Section 174 Repeal and saving 166
Schedule-I Activities to be treated as supply even if made
without consideration
168
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Schedule-II Activities or transactions to be treated as supply
of goods or supply of services
169
Schedule-III Activities or transactions which shall be treated
neither as a supply of goods nor a supply of
services
172
2025 BIHAR GOODS AND SERVICES TAX ACT, 2017 1
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THE BIHAR GOODS AND SERVICES TAX ACT, 2017
[Bihar Act 12, 2017]1
AN
ACT
to make a provision for levy and collection of tax on intra -State supply of
goods or services or both by the State of Bihar and the matters connected
therewith or incidental thereto
BE it enacted by Legislature of Bihar in the Sixty -eighth Year of the Republic
of India as follows:-
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.—
(1) This Act may be called the Bihar Goods and Services Tax Act, 2017.
(2) It extends to the whole of the State of Bihar.
(3) It shall come into force on such date as the State Government may, by
notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this
Act and any reference in any such provision to the commencement of this Act
shall be construed as a reference to the coming into force of that provision.
2. Definitions.
In this Act, unless the context otherwise requires :-
(1) ―actionable claim‖ shall have the same meaning as assigned to it in
section 3 of the Transfer of Property Act, 1882;
(2) ―address of delivery‖ means the address of the recipient of goods or
services or both indicated on the tax invoice issued by a registered person for
delivery of such goods or services or both;
(3) ―address on record‖ means the address of the recipient as available in the
records of the supplier;
(4). "adjudicating authority" means any authority, appointed or authorised
to pass any order or decision under this Act, but does not include the
Commissioner, Revisional Authority, the Authority for Advance Ruling, the
Appellate Authority for Advance Ruling, [the National Appellate Au thority for
Advance Ruling] 2, [the Appellate Authority, the Appellate Tribunal and the
Authority referred to in sub-section (2) of Section 171.]3
1. Passed by the Bihar Legislature and assented to by the Governor on May 3, 2017, published
in the Bihar Gazette Extra-ordinary under Noti. No. 378 Dated May 8, 2017.
2. Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of
2019) vide Notification No. 1329 Dated 12th December, 2019.
3. Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14
of 2018) vide Notification No. 1039 Dated 10th December, 2018 for "the Appellate Authority and
the Appellate Tribunal".
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(5) "agent" means a person, including a factor, broker, commission agent,
arhatia, del credere agent, an auctioneer or any other mercantile agent, by
whatever name called, who carries on the business of supply or receipt of
goods or services or both on behalf of another;
(6) "aggregate turnover" means the aggregate value of all taxable supplies
(excluding the value of inward supplies on which tax is payable by a person
on reverse charge basis), exempt supplies, exports of goods or services or both
and inter -State supplies of persons having the same Permanent Account
Number, to be computed on all India basis but excludes central tax, State tax,
Union territory tax, integrated tax and cess;
(7) ―agriculturist‖ means an individual or a Hindu Undivided Family who
undertakes cultivation of land–
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired labour
under personal supervision or the personal supervision of any member
of the family;
(8) ―Appellate Authority‖ means an authority appointed or authorised to
hear appeals as referred to in section 107;
(9) "Appellate Tribunal" means the Goods an d Services Tax Appellate
Tribunal constituted under section109;
(10) "appointed day" means the date on which the provisions of this Act shall
come into force;
(11) "assessment" means determination of tax liability under this Act and
includes self -assessment, re -assessment, provisional assessment, summary
assessment and best judgement assessment;
(12) "associated enterprises" shall have the same meaning as assigned to it
in section 92A of the Income-tax Act, 1961;
(13) "audit" means the examination of record s, returns and other documents
maintained or furnished by the registered person under this Act or the rules
made thereunder or under any other law for the time being in force to verify
the correctness of turnover declared, taxes paid, refund claimed and input tax
credit availed, and to assess his compliance with the provisions of this Act or
the rules made thereunder;
(14) ―authorised bank‖ shall mean a bank or a branch of a bank authorised
by the Central Government to collect the tax or any other amount pa yable
under this Act;
(15) "authorised representative" means the representative as referred to
under section 116;
(16) "Board" means the [Central Board of Indirect Taxes and Customs] 4
constituted under the Central Boards of Revenue Act, 1963;
4. Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14
of 2018) vide Notification No. 1039 Dated 10th December, 2018 for "Central Board of Excise and
Customs".
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(17) ―business‖ includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure,
wager or any other similar activity, whether or not it is for a pecuniary
benefit;
(b) any activity or transaction in connection with or incidental or
ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub -clause (a), whether
or not there is volume, frequency, continuity or regularity of such
transaction;
(d) supply or acquisition of goods including capital goods and services
in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a
subscription or any other consideration) of the facilities or benefits to
its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has
been accepted by him in the course or furtherance of his trade,
profession or vocation;
[(h) activities of a race club including by way of totalisator or a license
to book maker or act ivities of a licensed book maker in such club,
and]5;
(i) any activity or transaction undertaken by the Central Government, a
State Government or any local authority in which they are engaged as
public authorities;
(18). [***]6
5. Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14
of 2018) vide Notification No. 1039 Dated 10th December, 2018. Prior to substitution clause
reads as under :-
"(h) services provided by a race club by way of totalisator or a licence to book maker in such
club; and"
6. Omitted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of
2018) vide Notification No. 1039 Dated 10th December, 2018. Prior to omission clause reads as
under:-
2(18) "business vertical" means a distinguishable component of an enterprise that is engaged
in the supply of individual goods or services or a group of related goods or services which is
subject to risks and returns that are different from those of the other business verticals.
Explanation.-For the purposes of this clause, factors that should be considered in determining
whether goods or services are related include-
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of reg ulatory environment (wherever applicable),including banking, insurance or
public utilities;"
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(19) ―capital goods‖ means g oods, the value of which is capitalized in the
books of account of the person claiming the input tax credit and which are
used or intended to be used in the course or furtherance of business;
(20) ―casual taxable person‖ means a person who occasionally und er takes
transactions involving supply of goods or services or both in the course or
furtherance of business, whether as principal, agent or in any other capacity,
in the taxable territory where he has no fixed place of business;
(21) "central tax" means the central goods and services tax levied under
section9 of the Central Goods and Services Tax Act;
(22) "cess" shall have the same meaning as assigned to it in the Goods and
Services Tax (Compensation to States) Act;
(23) "chartered accountant" means a chartered accountant as defined in
clause (b) of sub -section (1) of section 2 of the Chartered Accountants Act,
1949;
(24) "Commissioner" means the Commissioner of State tax appointed under
section 3 and includes the Principal Commissioner or Chief Co mmissioner of
State tax appointed under Section 3;
(25) "Commissioner in the Board" means the Commissioner refer redtoin
section 168 of the Central Goods and Services Tax Act;
(26) ―common portal‖ means the common goods and services tax electronic
portal referred to in section 146;
(27) ―common working days‖ shall mean such days in succession which are
not declared as gazetted holidays by the Central Government or the
Government of Bihar;
(28) "company secretary" means a company secretary as defined in clau se
(c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980;
(29) ―competent authority‖ means such authority as may be notified by the
Government;
(30) ―composite supply‖ means a supply made by a taxable person to a
recipient consisting of two or more taxable supplies of goods or services or
both, or any combination thereof, which are naturally bundled and supplied
in conjunction with each other in the ordinary course of business, one of
which is a principal supply;
Illustration. Where goods are packed and transported with insurance,
the supply of goods, packing materials, transport and insurance is a
composite supply and supply of goods is a principal supply.
(31) ―consideration‖ in relation to the supply of goods or services or both
includes––
(a) any payment made or to be made, whether in money or otherwise,
in respect of, in response to, or for the inducement of, the supply of
goods or services or both, whether by the recipient or by any other
person but shall not include any subsidy given by the Central
Government or a State Government;
(b) the monetary value of any act or forbearance, in respect of, in
response to, or for the in document of, the supply of goods or services
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or both, whether by the recipient or by any other person but shall not
include any subsidy given by the Central Government or a State
Government:
Provided that a deposit given in respect of the supply of goods or services or
both shall not be considered as payment made for such supply unless the
supplier applies such deposit as consideration for the said supply;
(32) "continuous supply of goods" means a supply of goods which is
provided, or agreed to be provided, continuously or on recurrent basis, under
a contract, whether or not by means of a wire, cable, pipeline or ot her
conduit, and for which the supplier invoices the recipient on a regular or
periodic basis and includes supply of such goods as the Government may,
subject to such conditions, as it may, by notification, specify;
(33) ―continuous supply of services‖ means a supply of services which is
provided, or agreed to be provided, continuously or on recurrent basis, under
a contract, for a period exceeding three months with periodic payment
obligations and includes supply of such services as the Government may,
subject to such conditions, as it may, by notification, specify;
(34) "conveyance" includes a vessel, an aircraft and a vehicle;
(35). "cost accountant" means a cost accountant as defined in [clause (b)]7 of
sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959;
(36) ―Council‖ means the Goods and Services Tax Council established under
article 279A of the Constitution;
(37) ―credit note‖ means a document issued by a registered person under
sub- section (1) of section 34;
(38) ―debit note‖ means a document issued by a registered person under
sub- section (3) of section 34;
(39) ―deemed exports‖ means such supplies of goods as may be notified
under section 147;
(40) ―designated authority‖ means such authority as may be notified by the
Commissioner;
(41) ―document‖ includes written or printed record of any sort and electronic
record as defined in clause (t) of section 2 of the Information Technology Act,
2000;
(42) ―draw back‖ in relation to any goods manufactured in India and
exported, means the rebate of duty, tax or cess chargeable on any imported
inputs or on any domestic inputs or input services used in the manufacture of
such goods;
(43) ―electronic cash ledger‖ means the electronic cash ledger referred to in
sub- section (1) of section 49;
(44) ―electronic commerce‖ means the supply of goods or services or both,
including digital products over digital or electronic network;
7. Substituted vide The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14
of 2018) vide Notification No. 1039 Dated 10th December, 2018 for "clause (c)".
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(45) ―electronic commerce operator‖ means any person who owns, operates
or manages digital or electronic facility or platform for electronic commerce;
(46) ―electronic credit ledger‖ means the electronic credit ledger referred to
in sub-section (2) of section 49;
(47) "exempt supply" means supply of any goods or services or both which
attracts nil rate of tax or which may be wholly exempt from tax under section
11, or under section 6 of the Integrated Goods and Services Tax Act, and
includes non- taxable supply;
(48) "existing law" means any law, notific ation, order, rule or regulation
relating to levy and collection of duty or tax on goods or services or both
passed or made before the commencement of this Act by the Legislature or
any Authority or person having the power to make such law, notification,
order, rule or regulation;
(49) ―family‖ means,—
(i) the spouse and children of the person, and
(ii) the parents, grand -parents, brothers and sisters of the person if
they are wholly or mainly dependent on the said person;
(50) ―fixed establishment‖ means a place (other than the registered place of
business) which is characterised by a sufficient degree of permanence and
suitable structure in terms of human and technical resources to supply
services, or to receive and use services for its own needs;
(51) "Fund" means the Consumer Welfare Fund established under section 57;
(52) ―goods‖ means every kind of movable property other than money and
securities but includes actionable claim, growing crops, grass and things
attached to or forming part of the land which are agreed to be severed before
supply or under a contract of supply;
(53) "Government" means the Government of Bihar;
(54) ―Goods and Services Tax (Compensation to States) Act‖ means the
Goods and Services Tax (Compensation to States) Act, 2017;
(55) ―goods and services tax practitioner" means any person who has been
approved under section 48 to act as such practitioner;
(56) "India" means the territory of India as referred to in article 1 of the
Constitution, its territorial waters, seabed and sub -soil u nderlying such
waters, continental shelf, exclusive economic zone or any other maritime zone
as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic
Zone and other Maritime Zones Act, 1976, and the air space above its
territory and territorial waters;
(57) ―Integrated Goods and Services Tax Act‖ means the Integrated Goods
and Services Tax Act, 2017;
(58) ―integrated tax‖ means the integrated goods and services tax levied
under the Integrated Goods and Services Tax Act;
(59) ―input‖ means any goods other than capital goods used or intended to
be used by a supplier in the course or furtherance of business;
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(60) ―input service‖ means any service used or intended to be used by a
supplier in the course or furtherance of business;
[(61) "Input Service Distributor" means an office of the supplier of goods or
services or both which receives tax invoices towards the receipt of input
services, including invoices in respect of services liable to tax under sub -
section (3) or sub -section (4) of section 9 [of this Act or under sub -section (3)
or subsection (4) of section 5 of the Integrated Goods and Services Tax Act,
2017]8, for or on behalf of distinct persons referred to in section 25, and liable
to distribute the input tax credit in respect o f such invoices in the manner
provided in section 20;'.]9
(62) "input tax" in relation to a registered person, means the central tax,
State tax, integrated tax or Union territory tax charged on any supply of goods
or services or both made to him and includes-
(a) the integrated goods and services tax charged on import of goods;
(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;
(c) the tax payable under the provisions of sub -sections (3) and (4) of
section 5 of the Integrated Goods and Services Tax Act; or
(d) the tax payable under the provisions of sub -sections (3) and (4) of
section 9 of the Central Goods and Services Tax Act, but does not include
the tax paid under the composition levy;
(63) "input tax credit" means the credit of input tax;
(64) "intra-State supply of goods" shall have the same meaning as assigned
to it in section 8 of the Integrated Goods and Services Tax Act;
(65) "intra -State supply of services" shall have the same meaning as
assigned to it in section 8 of the Integrated Goods and Services Tax Act;
(66) "invoice" or "tax invoice" means the tax invoice referred to in section31;
(67) ―inward supply‖ in relation to a person, shall mean receipt of goods or
services or both whether by purchase, acquisition or any other means, with or
without consideration;
(68) ―job work‖ means any treatment or process undertaken by a person on
goods belonging to a not her registered person and the expression ―job
worker‖ shall be construed accordingly;
8. Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2025 (Bihar Act no. 07 of
2025) vide Notification No. 1338 Dated 12th August, 2025 w.e.f. 01.04.2025.
9. Substituted by The Bihar Goods and Services Tax (Amendment) Act, 2024 (Bihar Act no. 15
of 2024) vide Notification No. 736 Dated 6th August, 2024. Prior to submission clause reads as
under :-
(61) "Input Service Distributor" means an office of the supplier of goods or services or both
which receives tax invoices issued under section 31 towards the receipt of input services and
issues a prescribed document for the purposes of distributing the credit of central tax, State
tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods
or services or both having the same Permanent Account Number as that of the said office;
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(69) ―local authority‖ means––
(a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution;
(b) a "Municipality" as defined in clause (e) of article 243P of the Constitution;
(c) a Municipal Committee, a Zilla Parishad, a District Board, and any
other authority legally entitled to, or entrusted by the Central Government
or any State Government with the control or management of a [municipal
fund or local fund]10;
[Explanation.––For the purposes of this sub-clause—
(a) ―local fund‖ means any fund under the control or management of an
authority of a local self -government established for discharging civic
functions in relation to a Panchayat area and vested by law with the
powers to levy, collect and appropriate any tax, duty, toll, cess or fee, by
whatever name called;
(b) ―municipal fund‖ means any fund under the control or management of
an authority of a local self -government established for discharging civic
functions in relation to a Metropolitan area or Municipal area and vested
by law with the powers to levy, co llect and appropriate any tax, duty, toll,
cess or fee, by whatever name called;]11
(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
(e) a Regional Council or a District Council constituted under the Sixth
Schedule to the Constitution;
(f) a Development Board constituted under article 371 [and article 371J]12
of the Constitution; or
(g) a Regional Council constituted under article 371A of the Constitution;
(70) "location of the recipient of services" means,-
(a) where a supply is received at a place of business for which the
registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business
for which registration has been obtained (a fixed establishment elsewhere),
the location of such fixed establishment;
(c) where a supply is received at more than one establishment, whether the
place of business or fixed establishment, the location of the establishment
most directly concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence of
the recipient;
10. Substituted for the words " municipal or local fund " by The Bihar Goods and Services Tax
(Amendment) Act, 2025 (Bihar Act no. 07 of 2025) vide Notification No. 1338 Dated 12th
August, 2025.
11. Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2025 (Bihar Act no. 07 of
2025) vide Notification No. 1338 Dated 12th August, 2025.
12. Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2018 (Bihar Act no. 14 of
2018) vide Notification No. 1039 Dated 10th December, 2018.
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(71) "location of the supplier of services" means,-
(a) where a supply is made from a place of business for which the
registration has been obtained, the location of such place of business;
(b) where a supply is made from a place other than the place of business
for which registration has been obtained (a fixed establishment elsewhere),
the location of such fixed establishment;
(c) where a supply is made from more than one establishment, whether the
place of business or fixed establishment, the location of the establishment
most directly concerned with the provisions of the supply; and
(d) in absence of such places, the location of the usual place of residence of
the supplier;
(72) "manufacture" means processing of raw material or inputs in any
manner that results in emergence of a new product having a distinct name,
character and use and the term "manufacturer" shall be construed
accordingly;
(73) "market value" shall mean the full amount which a recipient of a supply
is required to pay in order to obtain the goods or services or both of like kind
and quality at or about the same time and at the same commercial level where
the recipient and the supplier are not related;
(74) ―mixed supply‖ means two or more individual supplies of goods or
services, or any combination thereof, made in conjunction with each other by
a taxable person for a single price where such supply does not constitute a
composite supply.
Illustration: A supply of a package consisting of canned foods, sweets,
chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for
a single price is a mixed supply. Each of these items can be supplied
separately and is not dependent on any other. It shall not be a mixed supply if
these items are suppExcerpt shown. Open the full act in Lexace.