LexThe KARNATAKA GOODS AND SERVICES TAX ACT, 2017
Karnataka · state statute
Open in Lexace · Ask the AI about this act1 KARNATAKA ACT NO. 27 OF 2017 THE KARNATAKA GOODS AND SERVICES TAX ACT, 2017 Arrangement of section STATEMENT OF OBJECTS AND REASONS Sections: CHAPTER I PRELIMINARY 1. Short title, extent and commencement 2. Definitions 3. Officers under this Act 4. Appointment of officers 5. Powers of officers CHAPTER II ADMINISTRATION 6. Authorisation of officers of central tax as proper officer in certain circumstances 7. Scope of supply CHAPTER III LEVY AND COLLECTION OF TAX 8. Tax liability on composite and mixed supplies 9. Levy and collection 10. Composition levy 11. Power to grant exemption from tax 11A. Power not to recover Goods and Services Tax not levied or short-levied as a result of general practice CHAPTER IV TIME AND VALUE OF SUPPLY 12. Time of supply of goods 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 2 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 of registration 30. Revocation of cancellation of registration 31. Tax invoice CHAPTER- VII TAX INVOICE, CREDIT AND DEBIT NOTES 31A.Facility of digital payment to recipient 32. Prohibition of unauthorised 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 44. Annual return 45. Final return 46. Notice to return defaulters 47. Levy of late fee 48. Goods and services tax practitioners CHAPTER-X PAYMENT OF TAX 49. Payment of tax, interest, penalty and other amounts 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 54. Refund of tax 55. Refund in certain cases 56. Interest on delayed refunds CHAPTER XI REFUNDS 3 57. Consumer Welfare Fund 58. Utilisation of Fund 59. Self-assessment 60. Provisional assessment 61. Scrutiny of returns CHAPTER– XII ASSESSMENT 62. Assessment of non-filers of returns 63. Assessment of unregistered persons 64. Summary assessment in certain special cases 65. Audit by tax authorities 66. Special audit CHAPTER XIII 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 1[pertaining to the period up to Financial Year 2023-24]1 not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilfulmisstatement or suppression of facts.- 74. Determination of tax 1[pertaining to the period up to Financial Year 2023 -24]1 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. 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onwards 75. General provisions relating to determination of tax 76. Tax collected but not paid to Government 77. Tax wrongfully collected and paid to Central Government or State Government 78. Initiation of recovery proceedings 79. Recovery of tax 80. Payment of tax and other amount in instalments 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 4 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 provisions regarding liability to pay tax, interest or penalty in certain cases 94. Liability in other cases 95. Definitions. CHAPTER XVII ADVANCE RULING 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 100. Appeal to the Appellate Authority 101. Orders of Appellate Authority 101A. Constitution of National Appellate Authority for Advance Ruling 101B.Appeal to National Appellate Authority 101C.Order of National Appellate Authority 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 and Appellate Authority. CHAPTER–XVIII APPEALS AND REVISION 107. Appeals to Appellate Authority 108. Powers of Revisional Authority. 109. Appellate Tribunal and Benches thereof 110. XXX 111. Procedure before Appellate Tribunal 112. Appeals to Appellate Tribunal 113. Orders of Appellate Tribunal 114. XXX 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 notwithstanding appeal etc. 5 120. Appeal not to be filed in certain cases.- 121. Non appealable decisions and orders. CHAPTER XIX OFFENCES AND PENALTIES 122. Penalty for certain offences. 122A. Penalty for failure to register certain machines used in manufacture of goods as per special procedure 122-B. Penalty for failure to comply with track and trace mechanism 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 128A. Waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods 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. 141. Transitional provisions relating to job work 142. Miscellaneous transitional provisions. 143. Job work procedure. CHAPTER XXI MISCELLANEOUS 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. 148-A. Track and trace mechanism for certain goods 149. Goods and services tax compliance rating. 150. Obligation to furnish information return. 151. Power to call for information 152. Bar on disclosure of information. 153. Taking assistance from an expert. 154. Power to take samples.- 6 155. 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. 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 the 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. Repeals. 174. Saving. SCHEDULE I SCHEDULE II SCHEDULE III STATEMENT OF OBJECTS AND REASONS I Amending Act 27 of 2017.- Presently, the State Government levies value added tax, entry tax, luxury tax, special entry tax, entertainment tax, taxes on lotteries, betting tax etc. It also administers and collects Central Sales tax on behalf of Central Government, Similarly, the Central Government levies tax on, manufacture of certain goods in the form of Central Excise duty, provision of certain services in the form of service tax, inter -State sale of goods in the form of Central Sales tax Accordingly, there is multiplicity of taxes which are being levied on the same supply chain. 2. The Present tax system on goods and services is facing certain difficulties as under— (i) there is cascading of taxes as taxes levied by the State Government are not available as set off ag ainst the taxes being levied by the Central Government; (ii) certain taxes levied by State Government are not allowed as set off for payment of other taxes being levied by it; (iii) the variety of Value Added Tax Laws in the country with disparate tax rates and dissi milar tax practices divides the country into separate economic spheres; and (iv) the creation of tariff and non -tariff barriers such as octroi, entry tax, check posts, etc., hinder the free flow of trade throughout the country. Besides that, the large number of taxes create high 7 compliance cost for the taxpayers in the form of number of returns, payments, etc. 3. In view of the aforesaid difficulties, all the above mentioned taxes are proposed to be subsumed in a single tax called the goods and services tax which will be levied on supply of goods or services or both at each stage of supply chain starting from manufacture or import and till the last retail level. So, any tax that is presently being levied by the Sta te Government or the Central Government on the supply of goods or services is going to be converged in goods and services tax which is proposed to be a dual levy where the State Government will levy and collect tax in the form of state goods and services t ax and the Central Government will levy and collect tax in the form of central goods and services tax on intra-State supply of goods or services or both. 4. In view of the above, it has become necessary to have a State legislation, namely the Karnataka Goods and Services Tax Bill, 2017. The proposed legislation will confer power upon the State Government for levying goods and services tax on the supply of goods or services or both which takes place within the State. The proposed legislation will simplify and harmonise the indirect tax regime in the country. It is expected to reduce cost of production and inflation in the economy, thereby making the Indian trade and industry more competitive, domestically as well as internationally. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of goods and services tax that would incentivise tax compliance by taxpayers. The proposed goods and services tax will broaden the tax base, and result in better tax compliance due to a robust information technology infrastructure. 5. The Karnataka Goods and Services Tax Bill, 2017, inter alia, provides for the following, namely:— (a) to levy tax on all intra -State supplies of goods or servi ces or both, except supply of alcoholic liquor for human consumption, at a rate to be notified, not exceeding twenty per cent. as recommended by the Goods and Services Tax Council (the Council); (b) to broad base the input tax credit by making it available in respect of taxes paid on any supply of goods or services or both used or intended to be used in the course or furtherance of business; (c) to impose obligation on electronic commerce operators to collect tax at source, at such rate not exceeding one per cent. of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals; (d) to provide for self-assessment of the taxes payable by the registered person; (e) to provide for conduct of audit of registered persons in order to verify compliance with the provisions of the Act; (f) to provide for recovery of arrears of tax using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person; (g) to provide for powers of inspection, search, seizure and arrest to the officers; (h) to establish the Authority for Advance Ruling and the Appellate Authority for hearing appeals against the orders issued by the Authority for Advance Ruling; (i) to adopt the Goods and Services Tax Appellate Tribunal established by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority; 8 (j) to make provision for penalties for contravention of the provisions of the proposed Legislation; (k) to provide for an anti -profiteering clause in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers; and (l) to provide for elaborate transitional provisions for smooth transitio n of existing taxpayers to goods and services tax regime. The Bill seeks to achieve the above objectives. [L.A. Bill No.19 of 2017, File No. Samvyashae 28 Shasana 2017] [entry 60 of List II of the Seventh Schedule to the Constitution of India.] II Amending Act 03 of 2019. - The Government of India has amended the Central Goods and Services Tax Act, 2017 by Central Goods and Services Tax (Amendment) Act, 2018 (Central Act No. 31 of 2018). Since Goods and Services Tax is a uniform Taxation System, all the States and Union Territories have to amend the respective Goods and Services Tax Acts as per the recommendations of Goods and Service Tax Council. Therefore, it is considered necessary to amend the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) to implement the new return filling system and also to overcome the difficulties of filling return and payment of tax under the Goods and Services Tax Act on the lines recommended by the Goods and Service Tax Council. Since the matter was urgent and the Karnataka Legislative Assembly was not in session, the Karnataka Goods and Services Tax (Amendment) Ordinance, 2018 (Karnataka ordinance 1 of 2018) was promulgated to achieve the above object. This Bill seeks to replace the said Ordinance. Hence the Bill. [L.A. Bill No.11 of 2018, File No. Samvyashae 24 Shasana 2018] [Entry 60 of List II of the Seventh Schedule to the Constitution of India.] III Amending Act 23 of 2019.-The Parliament of India has enacted the Finance (No. 2) Act, 2019 (Central Act No.23 of 2019) wherein certain amendment to the Central Goods and Services Tax Act, 2017 was made. Similar Amendment to the Karnataka Goods and Services Tax Act, 2017 has to be made accordingly. Therefore, it is considered necessary to amend the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) to,- (i) insert the words "the National Appellate Authority for Advance Ruling" in the definition of "adjudicating authority" so as to exclude that authority from the definition of adjudicating authority; (ii) provide alternative composition scheme for supplier of services or mixed suppliers (not eligible for the earlier composition scheme) 9 having an annual turnover in preceding financial year up to rupees fifty lakhs; (iii) provide for higher threshold exemption limit from rupees twenty lakhs to such amount not exceeding rupees forty lakhs in case of supplier who is engaged exclusively in the supply of goods; (iv) provide for mandatory Aadhaar submission or authentication for persons who intend to take or have taken registration under the said Act in such manner as may be notified by the Government on the recommendations of the Council; (v) provide that supplier shall mandatorily offer facility for digital payments to his recipient; (vi) provide for furnishing of annual returns and for quarterly payment of tax by taxpayer who opts for composition levy and to provide for certain other category of taxpayers, an option for quarterly and monthly payments under the proposed new return filing system; (vii) empower the Commissioner to extend the due date for furnishing Annual return and reconciliation statement; (viii) provide facility to the taxpayer to transfer an amount from one head to another in the electronic cash ledger; (ix) provide for charging interest only on the net cash tax liability, except in those cases where tax is paid subsequent to initiation of any proceedings under section 73 or 74 of the Act; (x) empower the Commissioner to extend the due date for furnishing of monthly and annual statement by the person collecting tax at source; (xi) provide for transfer of amount in the electronic cash ledger between the Centre and States as a consequence of the new facility given to the taxpayer under section 49; (xii) empower the government to transfer an amount equal to the amountwhich the Central Government has disbursed the refund of State tax; (xiii) include "the National Appellate Authority for Advance Ruling" in the definition of "advance ruling". It also seeks to insert clause (f) in section 95 of the Act to define "National Appellate Authority"; (xiv) provide for constitution of the National Appellate Authority for Advance Ruling and qualification, appointment, tenure, conditions of services and manner of removal of the President and Members of the National Appellate Authority as provided under the Central Goods and Services Tax Act; the proposed new section 101B seeks to provide for filing of appeals and the procedure to be followed for hearing appeals against conflicting advance rulings pronounced on the same question by the Appellate Authorities of two or more States or Union territories or both under sub -section (1) of section 101 or subsection (3) of section 101 of the Act; the proposed new section 101C seeks to provide that the National Appellate Authority shall pass order within a period of ninety days from the date of filing of the appeal. It also provides that where the members differ on any point, it shall be decided by majority; 10 (xv) bring the National Appellate Authority within the ambit of that section to empower it to rectify its advance ruling; (xvi) provide that the advance ruling pronounced by the National Appellate Authority shall be binding on the applicants, being distinct persons and all registered persons having the same Permanent Account Number and on the concerned officers or the jurisdictional officers in respect of the said applicants and the registered persons having the same Permanent Account Number. It also provides that the ruling shall be binding unless there is a change in law or facts; (xvii) provide that advance ruling pronounced by the National Appellate Authority shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts; (xviii) provide that the National Appellate Authority shall have all the powers of a civil court under the Code of Civil Procedure, 1908 for the purpose of exercising its powers under the Act; (xix) provide that the National Appellate Authority shall have power to regulate its own procedure; (xx) empower the Authority to impose penalty equivalent to ten per cent. of the profiteered amount; and (xxi) give retrospective exemption to "Uranium Ore Concentrate" from the levy of State tax from 1st July, 2017 to 14th November, 2017. Hence the Bill. [L.A. Bill No.11 of 2019, File No. Samvyashae 24 Shasana 2019] [Entry 60 of List II of the Seventh Schedule to the Constitution of India.] [Article 246A of the Constitution of India] IV Amending Act 20 of 2020.- The Karnataka Goods and Services Tax Act, 2O17 was enacted with a view to make a provision for levy and collection of tax on intra -State supply of goods or services or both by the Government of Karnataka. In view of the spread of pandemic of COVID -19 across many countries of the world including India, causing immense loss to the lives of people, it has become imperative to relax certain provisions, including extension of time limit in the said Act. Accordingly, the Central Government has already promulgated the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 to amend the Central Goods and Services Tax Act, 2017 (Central Act 12 of 2017). Similar amendments have to be made in the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017). As the matter was urgent and both the Houses of the Karnataka Legislature were not in session, the Karnataka Goods and Services Tax (Amendment) Ordinance, 2020 (Karnataka ordinance 5 of 2020) was promulgated to achieve the above object. 11 In addition to that, the new tax regime had faced certain difficulties. In order to overcome the difficulties, as per the recommendation of GST Council, the Central Government already amended the Central Goods and Service Tax, 2Ol7 (Central Act 12 of 2017) by Finance Act 2O2O (Central Act 12 of 2O2O). Hence similar amendments have to be made in the Karnataka Goods and Services Tax Act, 2O17 (Karnataka Act 27 of 2017). Therefore it is also considered necessary to amend the Karnataka Goods and Services Tax Act, 2O17 (Karnataka Act No 27 of 2017), to provide for amendment of,- (1) clause (114) of section 2 so as to align the definition of "Union territory‖ in line with the Jammu and Kashmir Reorganization Act, 2019 and the Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories), Act, 2019; (2) clauses (b), (c) and (d) of sub-section (21 of section 10 to harmonise the conditions for eligibility for opting to pay tax under sub -section (1) and sub - section (2A) of the said Act; (3) sub-section (4) of section 16 so as t o delink the date of issuance of debit note from the date of issuance of the underlying invoice for purposes of availing input tax credit; (4) clause (c) of sub - section (1) of section 29 so as to provide for cancellation of registration obtained voluntarily under sub-section (3) of section 25; (5) the proviso to sub -section (1) of section 30 so as to empower the jurisdictional tax authorities to extend the period provided to file an application for revocation of cancellation of registration; (6) section 31 so as to empower the Government to notify the categories of services or supplies in respect of which tax invoice shall be issued and to make rules regarding the time and manner of its issuance; (7) section 51 so as to empower the Government to make rules to provide for the form and manner in which a certificate of tax deduction at source shall be issued; (8) insertion of a new sub-section (1A) in section 122 so as to make the beneficiary of certain transactions at whose instance such transactions are conducted is liable for penalty; (9) section 132 so as to make the offence of fraudulent availment of input tax credit without invoice or bill cognizable and non-bailable under sub-section (1) of section 69 and to make any person who retains the benefit of certain transactions and a t whose instance such transactions are conducted liable for punishment; (10) section 140 relating to transitional arrangements for input tax credit, so as to prescribe the time limit and the manner for availing input tax credit against certain un availed credit under the existing law. This amendment shall take effect retrospectively from the 1st day of July, 2017; (11) section 172 so as to extend the time limit provided for removal of difficulties there under from three years to five years, with effect from the date of commencement of the said Act; (12) paragraph 4 of Schedule II so as to omit the words "whether or not for consideration" so as to give clarity to the meaning of the entries (a) and (b) of said paragraph. This amendment shall take effect retrospectively from the 1 st day of July, 2017; and (13) to provide retrospective exemption from State tax on supply of fishmeal, during the period from the 1 st day of July, 2017 up to 30 th day of September, 2019 (both days inclusive). It further seeks to retrospectively levy State tax at the reduced rate of six percent on supply of pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery of headings 8432, 8433 and 8436, during the period from the 1st day 12 of July, 20I7 up to 31st day of December, 2018 (both days inclusive). It also seeks to provide that no refund shall be made of the tax which has already been collected. This Bill seeks to replace the above Ordinance. Hence the Bill. [L.A. Bill No. 48 of 2020, File No. Samvyashae 28 Shasana 2020] [Article 246A of the Constitution of India.] [Published in Karnataka Gazette Extra-ordinary No. 459 in part-IV dated: 15.10.2020] V Amending Act 39 of 2021.- The Karnataka Goods and Services Tax Act, 2O17 was enabled with a view to make a provision for levy and collection of tax on intra -State supply of goods or services or both by the Government of Karnataka. It is considered necessary to amend the Karnataka Goods and Services Tax Ac t, 2O17 (Karnataka Act No 27 of 2017) to,- (1) insert clause (aa), in section 7, in sub-section (1), after clause (a) of the Karnataka Goods and Services Tax Act (hereinafter referred to as principal Act), so as the activities or transactions, by a person other than an individual, to its members or constituents or vice-versa, 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. This amendment shall take effect retrospectively from the 1st day of July, 2017; (2) insert clause (aa), in section 16, in sub -section (2), after clause ( a) so as in the statement of outward supplies has been furnished by the supplier and such details have been communicated to the r ecipient of such invoice or debit note in the manner specified under section 37; (3) omit sub-section (5), in section 35; (4) substitute the section 44 so as to ease the furnishing of an annual return which may include a self -certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year electronically. (5) substitute the proviso to sub -section (1) of section 50 so as the interest on t ax payable in respect of supplies made during a tax period declared in the return for the said period furnished after the due date in accordance with the provisions of Section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger. This amendment shall take effect retrospectively from the 1st day of July, 2017; (6) substitute in section 74, the words and figures ―sections 122, 125, 129 and 130‖ by the words and figures ―sections 122 and 125‖; (7) insert Explanation in section 75, in sub -section (12) so that the expression ―self - assessed tax‖ shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39; (8) substitute sub-section (1) in section 83, so as for the purpose of protecting the interest of the Government revenue the Commissioner may, by order in writing, attach 13 provisionally, any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122, in such manner be prescribed; (9) insert proviso in section 107, in sub -section (6), so that no appeal shall be filed against an order under sub -section (3) of section 129, unless a sum equal to twenty -five per cent of the penalty has been paid by the appellant; (10) (i) substitute clause (a) and clause (b), in section 129, so as to impose penalty for goods and exempted goods if the owner of the goods comes forward for payment or does not come forward for payment of penalty; (ii) omit sub-section (2) in section 129; (iii) substitute sub-section (3) in section 129, so as to impose penalty on detaining of goods and procedure; (iv) so as to substitute in sub-section (4) of section 129, the words ―No tax , interest or penalty‖, by the words ― No penalty‖; (v) substitute sub-section (6) in section 129, so as to impose penalty on detained or seized goods procedure; (11) (i) in sub-section(1) in section 130, so as to substitute for the words ―Notwithstanding anything contained in this Act if‖, by the word ―Where‖; (ii) in sub-section(2) in section 130, so asto substitute for the words in the second proviso, for the words , brackets and figures ―amount of penalty leviable for under sub - section (1) of section 129‖, by the words ―penalty equal to hundred per cent. of the tax payable of such goods; (iii) so as to omit sub-section(3) in section 130; (12) substitute in section 151 of the principal Act so as the Commissioner or an officer authorized by him to furnish information relating to any matter dealt with in connection with this Act, within such time, in such form, and in such manner, as may be specified therein; (13) (i) in sub -section (1) in section 152 of the principal Act , to omit the words ―of any individual return or part thereof‖ and after the words ―any proceedings under this Act‖ to insert ―without giving opportunity of being heard to the person concerned‖; (ii) omit sub-section (2) in section 152; (14) omit paragraph 7 in schedule II, this amendment shall be deemed to have been omitted with effect from the 1st day of July, 2017. Hence, the Bill. [L.A. Bill No. 36 of 2021, File No. Samvyashae 39 Shasana 2021] [Article 246 A of the Constitution of India.] [Published in Karnataka Gazette Extra-ordinary No. 831 in part-IVA dated: 11.10.2021] VI Amending Act 36of 2022. -The Parliament of India has enacted the Finance Act, 2022 (Central Act No.06 of 2022) wherein certain amendments to the Central Goods and Services Tax Act, 2017 were made. Similar amendments to the Karnataka Goods and Services Tax Act, 2017 have to be made accordingly. Therefore, it is considered necessary to amend the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) to,- (1) insert new clause (ba) after clause (b) in sub -section (2) of section 16,so as to provide that input tax credit with respect to a supply may be availed only when 14 such credit has not been restricted in the details communicated to the registered person under section 38. It further seeks to amend sub -section (4) by extending time limit so as to provide that a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note after the thirtieth day of November following the end of the financial year to which such invoice or debit note pertains, or furnishing of relevant annual return, whichever is earlier. (2) to amend clause (b) of sub -section (2) of section 29,so as to provide that the registration of a person paying tax under section 10 is liable to be cancelled, if the return for a financial year has not been furnished beyond three months from the due date of furnishing of the said return. It further seeks to amend in clause (c) of the saidsub-section (2), so as to provide for prescribing continuous tax periods for which return has not been furnished, which would make a registration liable for cancellation, in respect of any registered person, other than a person specified in clause(b) thereof. (3) to amend sub-section (2) of section 34 by extending time limit, so as to provide for thirtieth day of November following the end of the financial year, or the date of furnishing of the relevant annual return, whichever is earlier, as the last date for issue ance of credit notes in respect of any supply made in a financial year. (4) to amendsub-section (1) of section 37 so as to provide for prescribing conditions and restrictions for furnishing the detail so outward supply and the conditions and restrictions as well as manner and time for communication of the details of such outward supplies to concerned recipients. It further seeks to omit sub -section (2) and first proviso to sub -section (1) so as to do away with two-way communication process in return filing. It also seeks to amend sub -section (3) so as to remove reference to unmatched details under section 42 or section 43,as the said sections are proposed to be omitted andby extending time limit to provide for thirtieth day of November following the end of the financial year or furnishing of the relevant annual return, whichever is earlier, as the last date for rectification of errors oromissionin respect of details of outward supplies furnished undersub -section (1). It also seeks to insert sub-section (4) so as to provide for tax period-wise sequential filing of details of outward suppliesundersub-section (1). (5) to substitute a new section for section 38, sub -section (1) seeks to provide for prescribing such other supplies as well as the manner, time, conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto -generated statement and to do away with two-way communication process in return filing. Sub-section (2) seeks to provide for the details of inward supplies in respect of which in put tax credit may be availed and the details of supplies on which input tax credit cannot be availed by the recipient. (6) to amend sub -section (5) of section 39 so as to provide that the non -resident taxable person shall furnish there turn for a month within thirteen days after the end of the month or within seven days after the last day of the period of registration specified under sub-section(1)of section27,which ever is earlier. It further seeks to substitute the first proviso to sub -section(7)so as to provide an option to the persons furnishing return under proviso to sub- section (1) to pay either the self-assessed tax or an amount that may be prescribed. 15 It also seeks to amend sub-section (9) by removing reference of section 37 and section38 and to amend the proviso to said sub-section (9) by extending time limit, so as to provide for thirtieth day of November following the end of the financial year, or the date of furnishing of the relevant annual return, which ever is earlier, as the last date for the rectification of errors in the return furnished under section 39. It also seeks to amend sub -section (10) so as to provide for furnishing of details of outward supplies of a tax period under sub-section (1) of section 37 as a condition for furnishing the return under section 39 for the said tax period. (7) to substitute a new section for section 41 so as to do away with the concept of ―claim‖ of eligible input tax credit on a―provisional‖ basis and to provide for availment of self -assessed in put tax credit subject to such conditions and restrictions as may be prescribed. (8) to omit sections 42, 43 and 43A, section 42 is being omitted which relates to matching, reversal and reclaiming of input tax credit so as to do away with the concept of ―claim‖ of eligible input tax credit on a ―provisional‖ basis and subsequent matching, reversals and reclaim of such credit. It further seeks to omit section 43 relating to matching, reversal and reclaim of reduction in output tax liability so as to do away with two way communication process in return filing. It also seeks to omit section 43A. (9) to amend sub-section (1) of section 47 so as to provide for levy of late fee for delayed filing of return under section 52 and to remove reference of section 38 as there is no requirement of furnishing details of inward supplies by the registered person under the said section 38. (10) to amend sub-section (2) of section 48 so as to remove reference to section 38 there from as the reisno requirement of furnishing details of inward supplies by Goods and Service Tax Practitioner authorised by the registered person. (11) to amend sub-section (4) of section 49 so as to provide for prescribing restrictions for utilizing the amount available in the electronic credit ledger. It also seeks to insert sub-section (12) so as to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger. (12) to substitute a new sub-section for sub-section (3) of section 50 retrospectively, with effectfromthe1stJuly,2017,so as to provide for levy of interest on input tax credit wrongly availed and utilised, and to provide for prescribing manner of calculation of interest in such cases. (13) to amend proviso to sub -section(6) of section 52, by extending time limit, so as to provide for thirtieth day of November following the end of the financial year, or the date of furnishing of the relevant annual return,which ever is earlier, as the last date upto which the rectification of errors shall be allowed in the statement furnished under sub-section (4) by Electronic commerce operators. (14) to amend proviso to sub -section(1)of section54, so as to explicitly provide that claim of refund of any balance in the electronic cash ledger shall be made in such form and manner as may be prescribed. It further seeks to amend sub-section (2) so as to align it with sub-section (1) by extending time limit of two years from the last day of the quarter in which the supply was received for claiming refund of tax paid on inward supplies of goods or services or both by the person specified in the said sub-section. 16 It also seeks to amend sub -section (10) so as to extend the scope of the said sub-section to all types of refund claims. It also seeks to insert a new sub -clause (ba) in clause (2) of Explanation in order to provide clarity regarding the relevant date for filing refund claim in respect to supplies made to a Special Economic Zone developer or a Special Economic Zone unit. (15) It seeks to amend Notification (06/2018) No. FD 47 CSL 2017, dated23rd January,2018 to notify www.gst.gov.in, retrospectively with effective from28thJune, 2017 as the Common Goods and Services Tax Electronic portal, for all functions provided under Karnataka Goods and Service Tax Rules, 2017, save as otherwise provided in the Notification (23/2019) No. FD 47 CSL 2017, dated 21st December, 2019. (16) It seeks to amend Notification (13/2017)No. FD 47 CSL 2017 dated 29 th June, 2017 to notify rate of Interest under sub-section (3) of section 50 of the Karnataka Goods and Services Tax Act, as 18%, retrospect ively, with effect from the 1st day of July, 2017. (17) It seeks to provide retrospective exemption in the Notification (01/2017) No. FD 48 CSL 2017, dated: 29 th June, 2017, from, or levy or collection of, state tax in respect of supply of unintended waste generated during production of fish meal (falling under heading 2301) except for fish oil, for the period commencing from 1st day of July, 2017 and ending with 30 th day of September, 2019 (both days inclusive). It further seeks to provide that no refund shall be made of the said tax which has already been collected. (18) It seeks to give retrospective effect to Notification (25/2019) No. FD 48 CSL 2017,dated 30th September 2019,with effect from 1st day of July 2017(―Service by way of grant of alcoholic liquor license, against consideration in the form of license fee or application fee or by whatever name it is called shall be treated neither as supply of goods nor a supply of service under sub -section (2) of section7 of KGST Act, 2017.) It further seeks to p rovide that no refund shall be made of the said tax which has already been collected. Hence, the Bill. [L.A. Bill No. 19 of 2022, File No. SAMVYASHAE 21 SHASANA 2022] [Article 246A of the Constitution of India] [Published in Karnataka Gazette Extra -ordinary No.530 in part -IVA dated: 18.10.2022] 17 VII Amendment Act 32 of 2023: - The Karnataka Goods and Services Tax Act, 2017 was enacted to make a provision for levy and collection of tax on intra -State supply of goods or services or both by the Government of Karnataka. 2. However, the new tax regime had faced certain difficulties. In order to overcome the difficulties, it is proposed to amend the Karnataka Goods and Services Tax Act, 2017(Karnataka Act No. 27 of 2017). 3. The proposed Karnataka Goods and Services Tax (Amendment) Bill, 2023, inter alia, provides for the following, namely:- (1) Clause (d) of sub -section (2) and Clause (c) of sub -section (2A) in section 10 of the KGST Act is being amended so as to remove the restriction imposed on registered persons engaged in supplying goods through electronic commerce operators from opting to pay tax under the Composition Levy. (2) Second and third provisos to sub-section (2) of section 16 of the KGST Act are being amended to align the said sub -section with the return filing system provided in the said Act. (3) Explanation to sub -section (3) of section 17 of the KGST Act is being amended so as to restrict availment of input tax credit in respect of certain transactions specified in para 8(a) of Schedule III of the said Act, as may be prescribed, by including the value of such transactions in the value of exempt supply. Further, sub-section (5) of said section is also being amended so as to provide that input tax credit shall not be available in respect of goods or services or both received by a taxable person, which are used or inte nded to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013. (4) Sub -section (1) and sub -section (2) of section 23 of the KGST Act are being amended, with retrospec tive effect from 01st July, 2017, so as to provide that persons for compulsory registration in terms of subsection (1) of section 22 and section 24 of the Act need not register if exempt under sub section (1) of section 23. (5) A new sub -section (5) in se ction 37 of the KGST Act is being inserted so as to provide a time limit up to which the details of out war
Excerpt shown. Open the full act in Lexace.