The Mizoram Goods and Services Tax Act, 2017

The Mizoram Gazette
EXTRA ORDINARY
Published by Authority
RNI No. 27009/1973 Postal Regn. No. NE-313(MZ) 2006-2008
NOTIFICATION
No. H. 12018/243/2017-LJD, the 1 st June, 2017.    The following Act is hereby published for
general information.
The Mizoram Goods and Services Tax Act, 2017
(Act No. 6 of 2017)
(Received the assent of the Governor of Mizoram on the 26th May, 2017)
VOL - XLVI     Aizawl,    Friday   2.6.2017     Jyaistha  12,     S.E.  1939,     Issue No. 245
AN 
ACT
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Mizoram Goods 
and Services Tax Act, 2017. 
Short title, extent and 
commencement.
(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. In this Act, unless the context otherwise 
requires,––
Definitions.
4 of 1882.
(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; 
Ex-245/2017 2
(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 Appellate 
Authority and the Appellate Tribunal;
(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 ofthe 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 section 109; 
Ex-245/20173
(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;
43 of 1961.
(12) "associated enterprise s" shall have the 
same meaning as assigned to it in section 
92A of the Income-tax Act, 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 ref erred to under section 
116;
54 of 1963.
(16) “Board” means the Central Board of 
Excise and Customs constituted under the 
Central Boards of Revenue Act, 1963; 
(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);
Ex-245/2017 4
(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) services provided by a race club by way 
of totalisator or a lic ence to book maker in such
club; and
(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) “business vertical” means a 
distinguishable component of an enterprise 
that is engaged in the supply of individual 
goods or service s 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 con sidered in determining 
whether  goods or services are related include–– 
(a) the nature of the goods or services; 
(b) the nature of the production processes; 
Ex-245/20175
(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 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 
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 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;
38 of 1949.
(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 Commissio ner 
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; 
(26) “common portal” means the common 
Ex-245/2017 6
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 
Mizoram;
56 of 1980.
(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;  
(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 or dinary 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;
Ex-245/20177
(b) the monetar y 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 
other conduit, and for which the supplier 
invoices the recipie nt on a regular or 
periodic basis and includes supply of such 
goods as the Government may, subject to 
such condition s, 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 condition s, as it may , by
notification, specify;
(34) “conveyance” includes a vessel, an 
aircraft and a vehicle;
23 of 1959.
(35) “cost accountant” means a cost 
accountant as defined in clause (c) 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;
Ex-245/2017 8
(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; 
21 of 2000.
(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) “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;
(43) “electronic cash ledger” means the 
electronic cash ledg er 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 ledg er referred to in sub -
section (2) of section 49; 
Ex-245/20179
(47) “exempt supply” means supply of any 
goods or services or both which attract s 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, 
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 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 ;
(54) “Goods and Services Tax 
(Compensation to States) Act” means the 
Goods and Services Tax (Compensation to 
States) Act, 2017; 
Ex-245/2017 10
(55) “goods and services tax p ractitioner" 
means any person who has been approved 
under section 48 to act as such practitioner;
80 of 1976 (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, 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; 
(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, 
Ex-245/201711
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; 
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 a nd
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 a nother registered person and 
the expression “job worker” shall be 
construed accordingly;
(69) “local authority” means––
Ex-245/2017 12
(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 
or local fund;
41 of 2006.
(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 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 su pply 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 bus iness 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,-
Ex-245/201713
(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 ), t he 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 th e
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 
Ex-245/2017 14
note, bill of exchange, letter of credit, draft, 
pay order, traveller cheque, money order, 
postal or electronic remittance or any other 
instrument recognized by the Reserve B ank 
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;
59 of 1988.
(76) “motor vehicle” shall have the same 
meaning as assigned to it in clause (28) of 
section 2 of the Motor Vehicles Act, 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 Official 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; 
Ex-245/201715
(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;
(e) a Limited Liability Partnership; 
(f) an association of persons or a body of 
individuals, whether incorporated or not, in 
India or outside India; 
18 of 2013.
(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; 
(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 co-operative societies;
(j) a local authority;
(k) Central G overnment or a State 
Government; 
21 of 1860.
(l) society as defined under the Societies 
Registration Act, 1860;
(m) trust; and
(n) every artificial juridical person, not 
falling within any of the above;
Ex-245/2017 16
(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; 
(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 on the 
recommendations of the Council;
(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 performe d 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, 
Ex-245/201717
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.
(95) “regulations” means the regulations 
made by the under this Act on 
the recommendations of the Council;
(96) “removal’’ in relation to goods, means-
(a) despatch 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;
Ex-245/2017 18
(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 as referred to 
in section 108;
(100) “Schedule” means a Schedule appended 
to this Act;
42 of 1956.
(101) “securities” shall have the same meaning 
as assigned to it in clause (h) of section 2 of 
the Securities Contracts (Regulation) Act, 
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;
(103) “State” means the State of Mizoram;
(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;
Ex-245/201719
(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;
(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;
(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;
Ex-245/2017 20
(b) Lakshadweep;
(c) Dadra and Nagar Haveli;
(d) Daman and Diu;
(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 le vied under 
the Union Territory Goods and Services Tax 
Act;
(116) “Union Territory Goods and S ervices 
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, modifica tion, repair, 
maintenance, renovation, alteration or 
commissioning of any immovable property 
wherein 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 
Ex-245/201721
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. The Government shall, by notification , appoint
the following classes of officers for the 
purposes of this Act, namely:–– 
Officers under this Act.
4.
(2) The Commissioner shall have jurisdiction 
over the whole of the State, the Special 
Commissioner and an Additional 
Commissioner 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 a reas as the 
Commissioner may, by order, specify.
Ex-245/2017 22
5. (1) Subject to such conditions and limitations as 
the may impose, an officer of 
tax may exercise the powers and 
discharge the duties conferred or imposed on 
him under this Act. 
Powers of officers.
(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 who is 
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.
(2) Subject to the conditions specified in the 
notification issued under sub-section (1),-
(a) where any proper officer issues an order 
under this Act, he shall also issue an 
order under the Central Goods and 
Services Tax Act, as authorised by the 
said Act under intimation to the 
jurisdictional officer of central tax;
(b) where a proper officer under the Central
Goods and Services Tax Act has initiated 
any proceedings on a subject matter, no 
proceedings shall be initiated by the proper 
officer under this Act on the same subject 
matter.
(3) Any proceedings for rectification, appeal 
and revision, wherever applicable , of any 
Ex-245/201723
order passed by an officer appointed under 
this Act , shall not lie before an officer 
appointed under the Central Goods and 
Services Tax Act. 
CHAPTER III
LEVY AND COLLECTION OF TAX
7. (1) For the purposes of this Act, the expression 
“supply” includes–– 
Scope of supply.
(a) all forms of supply of goods or services or 
both such as sale, transfer, barter, exchange, 
license, rental, lease or disposal made or agreed to 
be made for a consideration by a person in the 
course or furtherance of business;
(b) import of services for a consideration whether 
or not in the course or furtherance of business; 
(c) the activities specified in Schedule I, made or 
agreed to be made without a consideration;and
(d) the activities to be treated as supply of goods 
or supply of services as referred to in Schedule II.
(2) Notwithstanding anything contained in sub -
section (1),–– 
(a) activities or transactions specified in 
Schedule III; or 
(b) such activities or transactions undertaken by 
the Central Government, a State Government or 
any local authority in which they are engaged as 
public authorities , as may be notified by the 
Government on the recommendations of the 
Council,
shall be treated neither as a sup ply of goods nor 
a supply of services.
(3) Subject to the provisions of sub-sections ( 1)
and ( 2), the Government may, on the 
recommendations of the Council, specify, by 
notification, the transactions that are to be 
treated as—  
Ex-245/2017 24
(a)  a supply of goods and not as a supply of 
services; or
(b) a supply of services and not as a supply of 
goods.  
8. The tax liability on a composite or a mixed 
supply shall be determined in the following 
manner, namely: —
Tax liability on composite 
and mixed supplies.
(a) a composite supply comprising two or more 
supplies, one of which is a principal supply, shall 
be treated as a supply of such principal supply; and 
(b) a mixed supply comprising two or more 
supplies shall be treated as a supply of that 
particular supply which attracts the highest rate of 
tax.
9. (1) Subject to the provisions of sub -section (2), 
there shall be levied a tax called the 
goods and services tax on all intra -State 
supplies of goods or services or both, except on
the supply of alcohol ic liquor for human 
consumption, on the value determined under 
section 15 and at such rates, not exceeding 
twenty per cent., as may be notified by the 
Government on the recommendations of the 
Council and collected in such manner as may 
be prescribed and shall be paid by the taxable 
person. 
Levy and collection.
(2) The State tax on the supply of petroleum 
crude, high speed diesel, motor spirit 
(commonly known as petrol), natural gas 
and aviation turbine fuel , shall be levied 
with effect from such date as may be 
notified by the Government on the 
recommendations of the Council.
(3) The Government may, on the 
recommendations of the Council, by 
notification, specify categories of supply of 
goods or services or both, the tax on which 
shall be paid on reverse charge basis by the 
recipient of such goods or services or both 
Ex-245/201725
and all the provisions of this Act shall apply 
to such recipient as if he is the person liable 
for paying the tax in relation to the supply 
of such goods or services or both. 
(4) The State tax in respect of the supply of 
taxable goods or services or both by a 
supplier, who is not registered, to a 
registered person shall be paid by such 
person on reverse charge basis as the 
recipient and all the provisions of this Act 
shall apply to such recipient as if he is the 
person liable for paying the tax in relation to 
the supply of such goods or services or both. 
(5) The Government may, on the 
recommendations of the Council, by 
notification, specify categories of services 
the tax on intra-State supplies of which shall 
be paid by the electronic commerce operator 
if such services a re supplied through it, and 
all the provisions of this Act shall apply to 
such electronic commerce operator as if he 
is the supplier liable for paying the tax in 
relation to the supply of such services:
Provided that where an electronic commerce 
operator does not have a physical presence in the 
taxable territory, any person representing such 
electronic commerce operator for any purpose in 
the taxable territory shall be liable to pay tax:
Provided further that where an electronic 
commerce operator does not have a physical 
presence in the taxable territory and also he does 
not have a representative in the said territory, such 
electronic commerce operator shall appoint a 
person in the taxable territory for the purpose of 
paying tax and such p erson shall be liable to pay 
tax.
10. (1) Notwithstanding anything to the contrary 
contained in this Act but subject to the 
provisions of sub-sections (3) and (4) of section 
9, a registered person, whose aggregate 
turnover in the preceding financial year did not 
exceed fifty lakh rupees may opt to pay, in lieu 
Composition levy.
Ex-245/2017 26
of the tax payable by him, an amount calculated 
at such rate as may be prescribed, but not 
exceeding,- 
subject to such conditions and restrictions as may 
be prescribed:
Provided that the Government may , by 
notification, increase the said limit of fifty lakh 
rupees to such higher amount, not exceeding 
one crore rupees, as may be recommended by 
the Council.
(2) The registered person shall be eligible to opt 
under sub-section (1), if— 
(a) he is not engaged in the supply of
services other than supplies referred to in clause 
(b) of paragraph 6 of Schedule II;
(b) he is not engaged in making any supply 
of goods which are not leviable to tax under this 
Act; 
(c) he is not engaged in making any inter -
State outward supplies of goods;
(d) he is not engaged in making any supply 
of goods through an electronic commerce 
operator who is required to collect tax at source 
under section 52; and
(e) he is not a manufacturer of such goods as 
may be notified by the Government on the 
recommendations of the Council:
Provided that where more than one 
registered person are having the same Permanent 
Account Number (issued under the Income -tax 
Ex-245/201727
43 of 1961 Act 1961), the registered person shall not be 
eligible to opt for the scheme under sub-section 
(1) unless all such registered persons opt to pay 
tax under that sub-section.  
(3) The option availed of by a registered person 
under sub-section (1) shall lapse with effect
from the day on which his aggregate 
turnover during a financial year exceeds the 
limit specified under sub-section (1). 
(4) A taxable person to whom the provisions of 
sub-section (1) apply shall not collect any 
tax from the recipient on supplies made by 
him nor shall he be entitled to any credit of 
input tax.
(5) If the proper officer has reasons to believe 
that a taxable person has paid tax under sub -
section (1) despite not being eligible , such 
person shall, in addition to any tax that may 
be payable by him under any other 
provisions of this Act, be liable to a penalt y
and the provisions of section 73 or section
74 shall, mutatis mutandis , apply for 
determination of tax and penalty.  
11. (1) Where the Government is satisfied that it is 
necessary in the public interest so to do, it may, 
on the recommendations of the Council, by 
notification, exempt generally, either absolutely 
or subject to such conditions as may be 
specified therein, goods or servic es or both of 
any specified description from the whole or any 
part of the tax leviable thereon with effect from 
such date as may be specified in such 
notification. 
Power to grant exemption 
from tax.
(2) Where the Government is satisfied that it is 
necessary in the public interest so to do, it 
may, on the recommendations of the 
Council, by special order in each case, 
under circumstances of an exceptional 
nature to be stated in such order , exempt 
from payment of tax any goods or services 
or both on which tax is leviable. 
Ex-245/2017 28
(3) The Government may, if it considers 
necessary or expedient so to do for the 
purpose of clarifying the scope or 
applicability of any notification issued 
under sub-section (1) or order issued under 
sub-section ( 2), insert an explanation in 
such notification or order, as the case may 
be, by notification at any time within one 
year of issue of the notification under sub -
section ( 1) or order under sub -section ( 2), 
and every such explanation shall have effect 
as if it had always been the part of the first 
such notification or order, as the case may 
be. 
(4)
.
Explanation.––For the purposes of this section, 
where an exe mption in respect of any goods or 
services or both from the whole or part of the tax 
leviable thereon has been granted absolutely, the 
registered person supplying such goods or services 
or both shall not collect the tax , in excess of the 
effective rate, on such supply of goods or services 
or both.  
CHAPTER IV
TIME AND VALUE OF SUPPLY
12. (1) The liability to pay tax on goods sha ll arise 
at the time of supply , as determined in 
accordance with the provisions of this section.
Time of supply of goods.
(2) The time of supply of goods shall be the 
earlier of the following dates, namely:-  
(a) the date of issue of invoice by the 
Ex-245/201729
supplier or the last date on which he is required, 
under sub-section (1) of section 31, to issue the 
invoice with respect to the supply; or
(b) the date on which the  supplier receives 
the payment with respect to the supply: 
Provided that where the supplier of taxable 
goods receives an amount up to one thousand 
rupees in excess of the amount indicated in the 
tax invoice, the time of supply to the extent of 
such excess amount shall, at the option of the 
said supplier, be the da te of issue of invoice  in 
respect of such excess amount. 
Explanation 1.––For the purposes of clauses (a) 
and (b), “supply” shall be deemed to have been 
made to the extent it is covered by the invoice or ,
as the case may be, the payment. 
Explanation 2.––For the purposes of clause (b), 
“the date on which the supplier receives the 
payment” shall be the date on which the payment is 
entered in his books of account or the date on 
which the payment is credited to his bank account, 
whichever is earlier.
(3) In case of supplies in respect of which tax is 
paid or liable to be paid on reverse charge 
basis, the time of supply shall be the earliest 
of the following dates, namely:— 
(a) the date of the receipt of goods; or
(b) the date of payment as entered in the 
books of account of the recipient or the date on 
which the payment is debited in his bank 
account, whichever is earlier; or
(c) the date immediately following thirty 
days from the date of  issue of invoice or any 
other document , by whatever name called ,  in 
lieu thereof by the supplier:  
Provided that where it is not possible to 
determine the time of supply under clause (a) or
Ex-245/2017 30
clause (b) or clause (c), the time of supply shall 
be the date of entry in the books of account of 
the recipient of supply.
(4) In case of supply of vouchers by a supplier, 
the time of supply shall be- 
(a) the date of issue of voucher, if the supply 
is identifiable at that point; or
(b) the date of redemption of voucher, in all 
other cases.
(5) Where it is not possible to determine the 
time of supply under the provisions of sub -
section (2) or sub-section (3) or sub-section
(4), the time of supply shall––
(a) in a case where a periodical return has to 
be filed, be the date on which such return is to 
be filed; or 
(b) in any other case, be the date on which 
the tax is paid.
(6) The time of supply to the extent it relates to 
an addition in the value of supply by way of 
interest, late fee or penalty for delayed 
payment of any consideration shall b e the 
date on which the supplier receives such 
addition in value.
13. (1) The liability to pay tax on services sh all 
arise at the time of supply, as determined in 
a

Excerpt shown. Open the full act in Lexace.

‹ Prev All Mizoram acts Next ›