The JAMMU AND KASHMIR GOODS AND SERVICES TAX ACT, 2017

GOODS AND SERVICES TAX
ACT, 2017
(Act No. V of 2017)
THE JAMMU AND KASHMIR GOODS AND SERVICES
TAX ACT, 2017
(Act No. V of 2017)
CONTENTS
Section.
CHAPTER I
Preliminary
1. Short title and commencement.
1A. Provisions to come into force with effect from the dates to be notified by
Government of Union territory of Jammu and Kashmir.
2. Definitions.
CHAPTER II
Administration
3. Officers under this Act.
4. Appointment of officers.
5. Powers of officers.
6. Authorization of officers of central tax as proper officer in certain
circumstances.
CHAPTER III
Levy and Collection of T ax
7. Scope of supply.
8. Tax liability on composite and mixed supplies.
9. Levy and Collection.
10. Composition Levy.
11. Power to grant exemption from tax.
CHAPTER IV
Time and Value of Supply
12. Time of supply of goods.
216 GOODS AND SERVICES TAX ACT, 2017
Section.
13. Time of supply of services.
14. Change in rate of tax in respect of supply of goods or services.
15. Value of taxable supply.
CHAPTER V
Input Tax Credit
16. Eligibility and conditions for taking input tax credit.
17. Apportionment of credit and blocked credits.
18. Availability of credit in special circumstances.
19. Taking input tax credit in respect of inputs and capital goods sent for job
work.
20. Manner of distribution of credit by Input Service Distributor.
21. Manner of recovery of credit distributed in excess.
CHAPTER VI
Registration
22. Persons liable for registration
23. Persons not liable for registration.
24. Compulsory registration in certain cases.
25. Procedure for registration.
26. Deemed registration.
27. Special provisions relating to casual taxable person and non-resident taxable
person.
28. Amendment of registration.
29. Cancellation or suspension of registration.
30. Revocation of cancellation of registration.
CHAPTER VII
T ax Invoice, Credit and Debt Notes
GOODS AND SERVICES TAX ACT, 2017 217
Section.
31. Tax invoice.
31A. Facility of digital payment to recipient.
32. Prohibition on unauthorized collection of tax.
33. Amount of tax to be indicated in tax invoice and other documents.
34. Credit and debit notes.
CHAPTER VIII
Accounts and Records
35. Accounts and other records.
36. Period of retention of accounts.
CHAPTER IX
Returns
37. Furnishing details of outward supplies.
38. Furnishing details of inward supplies.
39. Furnishing of returns.
40. First Return.
 41. Claim of input tax credit and provisional acceptance thereof.
42. Matching, reversal and reclaim of input tax credit.
43. Matching, reversal and reclaim of reduction in output tax liability.
43A. Procedure for furnishing return and availing input tax credit.
44. Annual return.
45. Final return.
46. Notice to return defaulters.
47. Levy of late fee.
48. Goods and services tax practitioners.
218 GOODS AND SERVICES TAX ACT, 2017
Section.
CHAPTER X
Payment of T ax
49. Payment of tax, interest, penalty and other amounts.
49A. Utilization of input tax credit subject to certain conditions.
49B. Order of utilization of input tax credit.
50. Interest on delayed payment of tax.
51. Tax deduction at source.
52. Collection of tax at source.
53. Transfer of input tax credit.
53A. Transfer of certain amounts.
CHAPTER XI
Refunds
54. Refund of tax.
55. Refund in certain cases.
56. Interest on delayed refunds.
57. Consumer Welfare Fund.
58. Utilization of Fund.
CHAPTER XII
Assessment
59. Self-assessment.
60. Provisional assessment.
61. Scrutiny of returns.
62. Assessment of non-filers of returns.
63. Assessment of unregistered persons.
GOODS AND SERVICES TAX ACT, 2017 219
Section.
64. Summary assessment in certain special cases.
CHAPTER XIII
Audit
65. Audit by tax authorities.
66. Special audit.
CHAPTER XIV
Inspection, Search, Seizure and Arrest
67. Power of inspection, search and seizure.
68. Inspection of goods in movement.
69. Power to arrest.
70. Power to summon persons to give evidence and produce documents.
71. Access to business premises.
72. Officers to assist proper officers.
CHAPTER XV
Demands and Recovery
73. Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilized for any reason other than fraud or any willful
misstatement or suppression of facts.
74. Determination of tax not paid or short paid or erroneously refunded or input tax
credit wrongly availed or utilized by reason of fraud or any willful misstatement or
suppression of facts.
75. General provisions relating to determination of tax.
76. Tax collected but not paid to Government.
77. Tax wrongfully collected and paid to the Central Government or State
Government.
78. Initiation of recovery proceedings.
79. Recovery of tax.
220 GOODS AND SERVICES TAX ACT, 2017
Section.
80. Payment of tax and other amount in installments.
81. Transfer of property to be void in certain cases.
82. Tax to be first charge on property.
83. Provisional attachment to protect revenue in certain cases.
84. Continuation and validation of certain recovery proceedings.
CHAPTER XVI
Liability to Pay in Certain Cases
85. Liability in case of transfer of business.
86. Liability of agent and principal.
87. Liability in case of amalgamation or merger of companies.
88. Liability in case of company in liquidation.
89. Liability of directors of private company.
90. Liability of partners of firm to pay tax.
91. Liability of guardians, trustees etc.
92. Liability of Court of Wards, etc.
93. Special provision regarding liability to pay tax, interest or penalty in certain
cases.
94. Liability in other cases.
CHAPTER XVII
Advance Ruling
95. Definitions.
96. Constitution of Authority for Advance Ruling.
97. Application for advance ruling.
98. Procedure on receipt of application.
99. Constitution of Appellate Authority for Advance Ruling.
GOODS AND SERVICES TAX ACT, 2017 221
Section.
100. Appeal to the Appellate Authority.
101. Orders of Appellate Authority.
101A.Constitution of National Appellate Authority for Advance Ruling.
102. Rectification of advance ruling.
103. Applicability of advance ruling.
104. Advance ruling to be void in certain circumstances.
105. Powers of Authority and Appellate Authority.
106. Procedure of Authority, Appellate Authority and National Appellate Authority.
CHAPTER XVIII
Appeals and Revision
107. Appeals to Appellate Authority.
108.  Powers of Revisional Authority.
109. Appellate Tribunal and Benches thereof.
110. President and Members of Appellate Tribunal, their qualification, appointment,
conditions of service, etc.
111. Procedure before Appellate Tribunal.
112. Appeals to Appellate Tribunal.
113. Orders of Appellate Tribunal.
114. Financial and administrative powers of State President.
115. Interest on refund of amount paid for admission of appeal.
116. Appearance by authorised representative.
117. Appeal to High Court.
118. Appeal to Supreme Court.
119. Sums due to be paid notwith-standing appeal etc.
222 GOODS AND SERVICES TAX ACT, 2017
Section.
120. Appeal not to be filed in certain cases.
121. Non-Appealable decisions and orders.
CHAPTER XIX
Offences and Penalties
122. Penalty for certain offences.
123. Penalty for failure to furnish information return.
124. Fine for failure to furnish statistics.
125. General penalty.
126. General disciplines related to penalty.
127. Power to impose penalty in certain cases.
128. Power to waive penalty or fee or both.
129. Detention, seizure and release of goods and conveyances in transit.
130. Confiscation of goods or conveyances and levy of penalty.
131. Confiscation or penalty not to interfere with other punishments.
132. Punishment for certain offences.
133. Liability of officers and certain other persons.
134. Cognizance of offences.
135. Presumption of culpable mental state.
136. Relevancy of statements under certain circumstances.
137. Offences by Companies.
138. Compounding of offences.
CHAPTER XX
Transitional Provisions
139. Migration of existing taxpayers.
140. Transitional arrangements for input tax credit.
GOODS AND SERVICES TAX ACT, 2017 223
Section.
141. Transitional provisions relating to job work.
142. Miscellaneous transitional provisions.
CHAPTER XXI
Miscellaneous
143. Job work procedure.
144. Presumption as to documents in certain cases.
145. Admissibility of micro films, facsimile copies of documents and computer
printouts as documents and as evidence.
146. Common Portal.
147. Deemed Exports.
148. Special procedure for certain processes.
149. Goods and services tax compliance rating.
150. Obligation to furnish information return.
151. Power to collect statistics.
152. Bar on disclosure of information.
153. Taking assistance from an expert.
154. Power to take samples.
155. Burden of Proof.
156. Persons deemed to be public servants.
157. Protection of action taken under this Act.
158. Disclosure of information by a public servant.
159. Publication of information in respect of persons in certain cases.
160. Assessment proceedings, etc. not to be invalid on certain grounds.
161. Rectification of errors apparent on the face of record.
162. Bar on jurisdiction of civil courts.
224 GOODS AND SERVICES TAX ACT, 2017
Section.
163. Levy of fee.
164. Power of Government to make rules.
165. Power to make regulations.
166. Laying of rules, regulations and notifications.
167. Delegation of powers.
168. Power to issue instructions or directions.
168A.Power of Government to extend time limit in special circumstances.
169. Service of notice in certain circumstances.
170. Rounding off of tax etc.
171. Anti-profiteering Measure.
172. Removal of difficulties.
173. Amendment of certain Acts.
174. Repeal and saving.
174A.Retrospective exemption from or levy or collection of State tax in certain
cases.
174B. Retrospective effect to notification issued under clause (ii) of proviso to sub-
section (3) of section 54 of Jammu and Kashmir Goods and Services Tax Act.
SCHEDULE I
SCHEDULE II
SCHEDULE III
–––––––
GOODS AND SERVICES TAX ACT, 2017 225
THE JAMMU AND KASHMIR GOODS AND SERVICES
TAX ACT, 2017
(Act No. V of 2017)
[Received the assent of the Governor on 7th July, 2017 and published
in the Government Gazette dated 7th July, 2017.]
An Act to make a provision for levy and collection of tax on intra-State
supply of goods or services or both by the 1[Union territory of Jammu and
Kashmir] and the matters connected therewith or incidental thereto.
Be it enacted by  Jammu and Kashmir State Legislature in the Sixty-
eighth Year of the Republic of India as follows :––
CHAPTER I
Preliminary
1. Short title and commencement.––(1)This Act may be called the Jammu
and Kashmir Goods and Services Tax Act, 2017.
2[(2) It shall come into force on such date as the Government may, by
notification in the *[Government 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.
3[1A. Provisions to come into force with effect from dates to be notified
by Government of Union territory of Jammu and Kashmir.–– Save as otherwise
provided, such provisions of this Act as amended by the Jammu and Kashmir
Reorganisation (Adaptation of State Laws) Third Order, 2020 shall be deemed
to have come into force with effect from such dates as may be notified by the
Government of Union territory of Jammu and Kashmir].
1. Substituted by S.O. 3466 (E) dated 05.10.2020 for “State of Jammu and Kashmir”.
* Now “Official Gazette”.
2. Enforced vide SRO 281 dated 8th July, 2017 with effect from 8th July, 2017.
3. Section 1A inserted by S.O. 3466 (E) dated 05.10.2020.
226 GOODS AND SERVICES TAX ACT, 2017
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 1[Transfer of Property Act, 1882(4 of 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, 2[the Appellate Authority for Advance Ruling,
the National Appellate Authority for Advance Ruling], 3[the
Appellate Authority, the Appellate Tribunal and the Authority
referred to in sub-section (2) of section 171] ;
(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:––
(i) by own labour ; or
1. Substituted by S.O. 3466 (E) dated 05.10.2020 for “Transfer of Property Act, Svt. 1977
(1920 A.D.) (XLII of 1920 A.D.)”.
2. Substituted ibid for “the Appellate Authority for Advance Ruling”.
3. Substituted ibid for “the Appellate Authority and Appellate Tribunal”.
GOODS AND SERVICES TAX ACT, 2017 227
(ii) by the labour of family ; or
(iii) by servants on wages payable in cash or kind or by hired
labour under personal supervision or the personal
supervision of any member of the family ;
(8) “Appellate Authority” means an Authority appointed or authorised
to hear appeals as referred to in section 107 ;
(9) “Appellate Tribunal” means the Goods and Services Tax Appellate
Tribunal referred to in 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 judgment assessment ;
 (l2) “associated enterprises” shall have the same meaning as assigned
to it in section 92A of the Income Tax Act, 1961 (43 of 1961) ;
(13) “audit” means the examination of records, returns and other
documents maintained or furnished by the registered person under
this Act or the rules made thereunder or under any other law for the
time being in force to verify the correctness of turnover declared,
taxes paid, refund claimed and input tax credit availed, and to assess
his compliance with the provisions of this Act or the rules made
thereunder ;
(14) “authorised bank” shall mean a bank or a branch of a bank authorised
by the Central Government to collect the tax or any other amount
payable under this Act ;
(15) “authorised representative” means the representative as referred
to under section 116 ;
(16) “Board” means the Central Board of Excise and Customs constituted
under the Central Boards of Revenue Act, 1963 (54 of 1963) ;
(17) “business” includes––
228 GOODS AND SERVICES TAX ACT, 2017
(i) any trade, commerce, manufacture, profession, vocation,
adventure, wager or any other similar activity, whether or not
it is for a pecuniary benefit ;
(ii) any activity or transaction in connection with or incidental or
ancillary to sub-clause (a) ;
(iii) any activity or transaction in the nature of sub-clause (a),
whether or not there is volume, frequency, continuity or
regularity of such transaction ;
(iv) supply or acquisition of goods including capital goods
and services in connection with commencement or closure
of business ;
(v) 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 ;
(vi) admission, for a consideration, of persons to any premises ;
(vii) 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 ;
1[(viii) activities of a race club including by way of totalisator or a
license to book maker or activities of a licensed book maker in
such club] ;
(viii) services provided by a race club by way of totalisator or a
licence to book maker in such club ; and
(ix) any activity or transaction undertaken by the Central
Government, a State Government or any local authority in
which they are engaged as public authorities ;
2(18) Omitted ;
Explanation:––For the purposes of this clause, factors that should be
considered in determining whether goods or services are related
include––
1. Sub-clause (viii) substituted by S.O. 3466 (E) dated 05.10.2020.
2. Clause (18) omitted ibid.
GOODS AND SERVICES TAX ACT, 2017 229
(i) the nature of the goods or services ;
(ii) the nature of the production processes ;
(iii) the type or class of customers for the goods or services ;
(iv) the methods used to distribute the goods or supply of
services ; and
(v) the nature of regulatory environment (wherever applicable),
including banking, insurance or public utilities ;
(19) “capital goods” means goods, the value of which is capitalised in
the books of accounts of the person claiming the input tax credit
and which are used or intended to be used in the course or
furtherance of business ;
(20) “casual taxable person” means a person who occasionally
undertakes transactions involving supply of goods or services or
both in the course or furtherance of business, whether as principal,
agent or in any other capacity, in the taxable territory where he has
no fixed place of business ;
(21) “central tax” means the central goods and services tax levied under
section 9 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 (38 of 1949) ;
(24) “Commissioner” means the Commissioner of State tax appointed
under section 3 and includes the Chief Commissioner of State tax
appointed under section 3 ;
(25) “Commissioner in the Board” means the Commissioner referred to
in section 168 of the Central Goods and Services Tax Act, 2017
(Central Act No. 22 of 2017) ;
(26) “common portal” means the common goods and services tax
electronic portal referred to in section 146 ;
230 GOODS AND SERVICES TAX ACT, 2017
(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 Jammu and Kashmir ;
(28) “company secretary” means a company secretary as defined in
clause (c) of sub-section (1) of section 2 of the Company Secretaries
Act, 1980 (56 of 1980) ;
(29) “competent authority” means such authority as may be notified by
the Government ;
(30) “composite supply” means a supply made by a taxable person to a
recipient consisting of two or more taxable supplies of goods or
services or both, or any combination thereof, which are naturally
bundled and supplied in conjunction with each other in the ordinary
course of business, one of which is a principal supply ;
Illustration :––Where goods are packed and transported with insurance, the
supply of goods, packing materials, transport and insurance is
a composite supply and supply of goods is a principal supply.
(31) “consideration” in relation to the supply of goods or services or
both includes––
(a) any payment made or to be made, whether in money or
otherwise,  in respect of, in response to, or for the inducement
of, the supply of goods or services or both, whether by the
recipient or by any other person but shall not include any
subsidy given by the Central Government or a State
Government ;
(b) the monetary value of any act or forbearance, in respect of, in
response to, or for the inducement of, the supply of goods or
services or both, whether by the recipient or by any other
person but shall not include any subsidy given by the Central
Government or a State Government :
Provided that a deposit given in respect of the supply of goods or services
or both shall not be considered as payment made for such supply unless the
supplier applies such deposit as consideration for the said supply ;
(32) “continuous supply of goods” means a supply of goods which is
provided, or agreed to be provided, continuously or on recurrent basis,
under a contract, whether or not by means of a wire, cable, pipeline or
GOODS AND SERVICES TAX ACT, 2017 231
other conduit, and for which the supplier invoices the recipient on a
regular or periodic basis and includes supply of such goods as the
Government may, subject to such conditions, as it may, by notification,
specify ;
(33) “continuous supply of services” means a supply of services which
is provided, or agreed to be provided, continuously or on recurrent
basis, under a contract, for a period exceeding three months with
periodic payment obligations and includes supply of such services
as the Government may, subject to such conditions, as it may, by
notification, specify ;
(34) “conveyance” includes a vessel, an aircraft and a vehicle ;
(35) “cost accountant” means a cost accountant as defined in 1[clause
(b)] of sub-section (1) of section 2 of the Cost and Works
Accountants Act, 1959 (23 of 1959) ;
(36) “Council” means the Goods and Services Tax Council established
under article 279A of the Constitution of India 2[x x x x] ;
(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 (21 of 2000) ;
(42) “drawback” in relation to any goods manufactured in India and
exported, means the rebate of duty, tax or cess chargeable on any
imported inputs or on any domestic inputs or input services used
in the manufacture of such goods ;
1. Substituted by S.O. 3466 (E) dated 05.10.2020 for “clause (c)”.
2. Words “as applicable to the State of Jammu and Kashmir omitted ibid.
232 GOODS AND SERVICES TAX ACT, 2017
(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 ;
(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 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, notification, order, rule or regulation
relating to levy and collection of duty or tax on goods or services
or both passed or made before the commencement of this Act by
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
GOODS AND SERVICES TAX ACT, 2017 233
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 Jammu and Kashmir ;
(54) “Goods and Services Tax (Compensation to States) Act” means the
Goods and Services Tax (Compensation to States) Act, 2017 (Central
Act No. 15 of 2017) ;
(55) “goods and services tax practitioner” means any person who has
been approved under section 48 to act as such practitioner ;
(56) “India” means the territory of India as referred to in Article 1 of the
Constitution, its territorial waters, seabed and sub-soil underlying
such waters, continental shelf, exclusive economic zone or any
other maritime zone as referred to in the Territorial Waters,
Continental Shelf, Exclusive Economic Zone and other Maritime
Zones Act, 1976 (Central Act No. 80 of 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 (Central Act No. 13 of 2017) ;
(58) “integrated tax” means the integrated goods and services tax levied
under the Integrated Goods and Services Tax Act ;
(59) “input” means any goods other than capital goods used or intended
to be used by a supplier in the course or furtherance of business ;
(60) “input service” means any service used or intended to be used by
a supplier in the course or furtherance of business ;
(61) “Input Service Distributor” means an office of the supplier of goods
or services or both which receives tax invoices issued under section
31 towards the receipt of input services and issues a prescribed
document for the purposes of distributing the credit of central tax,
State tax, integrated tax or Union territory tax paid on the said
services to a supplier of taxable goods or services or both having
the same Permanent Account Number as that of the said office ;
(62) “input tax” in relation to a registered person, 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––
234 GOODS AND SERVICES TAX ACT, 2017
(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,
2017 (Central Act No. 22 of 2017),
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 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 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
section 31 ;
(67) “inward supply” in relation to a person, shall mean receipt of goods
or services or both whether by purchase, acquisition or any other
means, with or without consideration ;
(68) “job work” means any treatment or process undertaken by a person
on goods belonging to another registered person and the expression
“job worker” shall be construed accordingly ;
(69) “local authority” means––
(a) a “Panchayat”  as defined in clause (k) of section 2 of the
Jammu and Kashmir Panchayati Raj Act, 1989 (IX of 1989) ;
(b) a “Municipality” as defined in sub-section (34) of section 2
of the Jammu and Kashmir Municipal Corporation Act, 2000
(XXI of 2000) ;
GOODS AND SERVICES TAX ACT, 2017 235
(c) a Municipal Committee and any other authority legally entitled
to, or entrusted by the Central Government or any State
Government with the control or management of a municipal
or local fund ;
(d) a Cantonment Board as defined in section 3 of the
Cantonments Act, 2006 (41 of 2006) ;
1[(e) A Regional Council or a District Council constituted under
the Sixth Schedule to the Constitution ;
(f) A Development Board constituted under article 371 of the
Constitution ; or
(g) A Regional Council constituted under article 371 A 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 ;
(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 ;
1. Substituted by S.O. 3466 (E) dated 05.10.2020.
236 GOODS AND SERVICES TAX ACT, 2017
(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 supplied separately ;
(75) “money” means the Indian legal tender or any foreign currency,
cheque, promissory note, bill of exchange, letter of credit, draft,
pay order, traveller cheque, money order, postal or electronic
remittance or any other instrument recognised by the Reserve
Bank of India when used as a consideration to settle an obligation
or exchange with Indian legal tender of another denomination but
shall not include any currency that is held for its numismatic
value ;
GOODS AND SERVICES TAX ACT, 2017 237
(76) “motor vehicle” shall  have the same meaning as assigned to it in
clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of
1988) ;
(77) “non-resident taxable person” means any person who occasionally
undertakes transactions involving supply of goods or services or
both, whether as principal or agent or in any other capacity, but
who has no fixed place of business or residence in India ;
(78) “non-taxable supply’’ means a supply of goods or services or both
which is not leviable to tax under this Act or under the Integrated
Goods and Services Tax Act ;
(79) “non-taxable territory” means the territory which is outside the
taxable territory ;
(80) “notification” means a notification published in the Government
Gazette and the expressions ‘notify’ and ‘notified’ shall be construed
accordingly ;
(81) “other territory” includes territories other than those comprising in a
State and those referred to in sub-clauses (a) to (e) of clause (114) ;
(82) “output tax” in relation to a taxable person, means the tax chargeable
under this Act on taxable supply of goods or services or both made
by him or by his agent but excludes tax payable by him on reverse
charge basis ;
(83) “outward supply” in relation to a taxable person, means supply of
goods or services or both, whether by sale, transfer, barter,
exchange, licence, rental, lease or disposal or any other mode, made
or agreed to be made by such person in the course or furtherance
of business ;
(84) “person” includes––
(a) an individual ;
(b) a Hindu Undivided Family ;
(c) a company ;
(d) a firm ;
238 GOODS AND SERVICES TAX ACT, 2017
(e) a Limited Liability Partnership ;
(f) an association of persons or a body of individuals, whether
incorporated or not, in India or outside India ;
(g) any corporation established by or under any Central Act,
State Act or Provincial Act or a Government company as
defined in clause (45) of section 2 of the Companies Act, 2013
(18 of 2013) ;
(h) any body corporate incorporated by or under the laws of a
country outside India ;
(i) a co-operative society registered under any law relating to
cooperative societies ;
(j) a local authority ;
(k) Central Government or a State Government ;
(l) society as defined under 1[the Societies Registration Act, 1860
(21 of 1860)] ;
(m) trust ; and
(n) every artificial juridical person, not falling within any of the
above ;
(85) “place of business” includes––
(a) a place from where the business is ordinarily carried on, and
includes a warehouse, a godown or any other place where a
taxable person stores his goods, supplies or receives goods
or services or both ; or
(b) a place where a taxable person maintains his books of
account ; or
(c) a place where a taxable person is engaged in business through
an agent, by whatever name called ;
1. Substituted by S.O. 3466 (E) dated 05.10.2020 for “the Jammu and Kashmir Societies
Registration Act, 1998 (1941 A.D.) (VI of 1998)”.
GOODS AND SERVICES TAX ACT, 2017 239
(86) “place of supply” means the place of supply as referred to in
Chapter V  of  the Integrated Goods and Services Tax Act ;
(87) “prescribed’’ means prescribed by rules made under this Act ;
(88) “principal” means a person on whose behalf an agent carries on
the business of supply or receipt  of goods or services or both ;
(89) “principal place of business” means the place of business specified
as the principal place of business in the certificate of registration ;
(90) “principal supply” means the supply of goods or services which
constitutes the predominant element of a composite supply and to
which any other supply forming part of that composite supply is
ancillary ;
(91) “proper officer” in relation to any function to be performed under
this Act, means the Commissioner or the Officer of the State tax
who is assigned that function by the Commissioner ;
(92) “quarter” shall mean a period comprising three consecutive calendar
months, ending on the last day of March, June, September and
December of a calendar year ;
(93) “recipient” of supply of goods or services or both, means––
(a) where a consideration is payable for the supply of goods or
services or both, the person who is liable to pay that
consideration ;
(b) where no consideration is payable for the supply of goods,
the person to whom the goods are delivered  or made available,
or to whom possession or use of the goods is given or made
available ; and
(c) where no consideration is payable for the supply of a service,
the person to whom the service is rendered, and any reference
to a person to whom a supply is made shall be construed as a
reference to the recipient of the supply and shall include an
agent acting as such on behalf of the recipient in relation to
the goods or services or both supplied ;
(94) “registered person” means a person who is registered under section
25 but does not include a person having a Unique Identity Number ;
240 GOODS AND SERVICES TAX ACT, 2017
(95) “regulations” means the regulations made by the Government under
this Act ;
(96) “removal’’ in relation to goods, means––
(a) dispatch of the goods for delivery by the supplier thereof or
by any other person acting on behalf of such supplier ; or
(b) collection of the goods by the recipient thereof or by any
other person acting on behalf of such recipient ;
(97) “return” means any return prescribed or otherwise required to be
furnished by or under this Act or the rules made thereunder ;
(98) “reverse charge’’ means the liability to pay tax by the recipient of
supply of goods or services or both instead of the supplier of such
goods or services or both under sub-section (3)  or sub-section (4)
of section 9,or under sub-section (3) or sub-section (4) of section 5
of the Integrated Goods and Services Tax Act ;
(99) “Revisional Authority” means an authority appointed or authorised
for revision of decision or orders referred to in section 108 ;
(100) “Schedule” means a Schedule appended to this Act ;
(101) “securities” shall have the same meaning as assigned to it in clause
(h) of section 2 of the Securities Contracts (Regulation) Act, 1956
(42 of 1956) ;
(102) “services” means anything other than goods, money and securities
but includes activities relating to the use of money or its conversion
by cash or by any other mode, from one form, currency or
denomination, to another form, currency or denomination for which
a separate consideration is charged’
1[Explanation.––For the removal of doubts, it is hereby clarified that the
expression “services” includes facilitating or arranging
transactions in securities ;]
(103) “State” means the 2[Union territory of Jammu and Kashmir] ;
1. Explanation inserted by S.O. 3466 (E) dated 05.10.2020.
2. Substituted ibid for “State of Jammu and Kashmir”.
GOODS AND SERVICES TAX ACT, 2017 241
(104) “State tax” means the tax levied under this Act ;
(105) “supplier” in relation to any goods or services or both, shall mean
the person supplying the said goods or services or both and shall
include an agent acting as such on behalf of such supplier in relation
to the goods or services or both supplied ;
(106) “tax period’’ means the period for which the return is required to be
furnished ;
(107) “taxable person” means a person who is registered or liable to be
registered under section 22 or section 24 ;
(108) “taxable supply’’ means a supply of goods or services or both
which is leviable to tax under this Act ;
(109) “taxable territory’’ means the territory to which the provisions of
this Act apply ;
(110) “telecommunication service” means service of any description
(including electronic mail, voice mail, data services, audio text
services, video text services, radio paging and cellular mobile
telephone services) which is made available to users by means of
any transmission or reception of signs, signals, writing, images
and sounds or intelligence of any nature, by wire, radio, visual or
other electromagnetic means ;
(111) “the Central Goods and Services Tax Act” means the Central Goods
and Services Tax Act, 2017(Central Act No. 22 of 2017) ;
(112) “turnover in State” or “turnover in Union territory” means the
aggregate value of all taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on reverse charge
basis) and exempt supplies made within a State or Union territory
by a taxable person, exports of goods or services or both and inter-
State supplies of goods or services or both made from the State or
Union territory by the said taxable person but excludes central tax,
State tax, Union territory tax, integrated tax and cess ;
(113) “usual place of residence” means––
(a) in case of an individual, the place where he ordinarily
resides ;
242 GOODS AND SERVICES TAX ACT, 2017
(b) in other cases, the place where the person is incorporated or
otherwise legally constituted ;
(114) “Union territory” means the territory of,––
(a) The Andaman and Nicobar Islands ;
(b) Lakshadweep ;
1[(c) Dadra and Nagar Haveli and Daman and Diu ;
(d) Ladakh ;]
(e) Chandigarh ; and
(f) other territory.
Explanation.––For the purposes of this Act, each of the territories specified
in sub-clauses (a) to (f) shall be considered to be a separate
Union territory ;
(115) “Union territory tax” means the Union territory goods and services
tax levied under the Union Territory Goods and Services Tax Act ;
(116) “Union Territory Goods and Services Tax Act” means the Union
Territory Goods and Services Tax Act, 2017 ;
(117) “valid return” means a return furnished under sub-section (1) of
section 39 on which self-assessed tax has been paid in full ;
(118) “voucher” means an instrument where there is an obligation to
accept it as consideration or part consideration for a supply of
goods or services or both and where the goods or services or both
to be supplied or the identities of their potential suppliers are either
indicated on the instrument itself or in related documentation,
including the terms and conditions of use of such instrument ;
(119) “works contract” means a contract for building, construction,
fabrication, completion, erection, installation, fitting out,
improvement, modification, repair, maintenance, renovation,
alteration or commissioning of any immovable property wherein
1. Sub-clauses (c) and (d) substituted by S.O. 3466 (E) dated 05.10.2020.
GOODS AND SERVICES TAX ACT, 2017 243
transfer of property in goods(whether as goods or in some other
form) is involved in the execution of such contract ;
(120) words and expressions used and not defined in this Act but defined
in the Integrated Goods and Services Tax Act, the Central Goods
and Services Tax Act, the Union Territory Goods and Services Tax
Act and the Goods and Services Tax (Compensation to States)
Act shall have the same  meanings as assigned to them in those
Acts.
CHAPTER II
Administration
3. Officers under this Act.––(1) The Government shall, by notification,
appoint the following classes of officers for the purposes of this Act, namely:––
(a) Chief Commissioner/Commissioner of State tax ;
(b) Special Commissioners/Additional Commissioners of  State tax ;
(c) Deputy Commissioners of State tax ;
(d) Assistant Commissioners of State tax ; and
(e) State Tax Officers :
Provided that, the officers appointed under the Jammu and Kashmir Value
Added Tax Act, 2005(III of 2005) shall be deemed to be the officers appointed
under the provisions of this Act.
4. Appointment of officers.––(1)The Government may, in addition to the
officers as may be notified under section 3, appoint such persons as it may
think fit to be the officers under this Act.
(2) The Commissioner shall have jurisdiction over the whole of the *State,
the Special Commissioners/Additional Commissioners in respect of all or any
of the functions assigned to them, shall have jurisdiction over the whole of the
*State or where the **[State Government] so directs, over any local area thereof,
and all other officers shall, subject to such conditions as may be specified,
have jurisdiction over the whole of the *State or over such local areas as the
Commissioner may, by order, specify.
* Now Union territory of Jammu and Kashmir.
* * Now Government of the Union territory of Jammu and Kashmir.
244 GOODS AND SERVICES TAX ACT, 2017
5. Powers of officers.––(1) Subject to such conditions and limitations as
the Commissioner may impose, an officer of State tax may exercise the powers
and discharge the duties conferred or imposed on him under this Act.
(2) An officer of State tax may exercise the powers and discharge the
duties conferred or imposed under this Act on any other officer of State 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
subordinate to him.
(4) Notwithstanding anything contained in this section, an Appellate
Authority shall not exercise the powers and discharge the duties conferred or
imposed on any other officer of State tax.
6. Authorization of officers of cen

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