The Nagaland Goods & Services Tax Act, 2017

THE NAGALAND GOODS AND SERVICES TAx Ad, 2017 
(NAGALAND ACT No.4 OF 2017) 
Received the assert of the Governor of Nagaland on 29.5.17 and published in 
the Nagaland Gazette extraordinary, Dated l7th June 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 State of Nagaland 
and the matters connected therewith or incidental thereto 
BE it enacted by the Legislature of Nagaland in the Sixty-
eighth year of the Republic of India as follows:- 
CHAPTER 1 
PRELIMINARY 
1. 	 (1) This Act maybe cal led the 
Nagaland Goods and Services Tax Act, 2017 
(2) It extends to the whole of the Nagaland 
Short tile, extent 
and 
Commence-ment. 
(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 
364 

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 
(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 
AuthorityTribunal; 
(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 reserve 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 bases but 
excludes Central tax, State tax, Union territory, 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 
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(c) 	 by servants on wages payable in cash or kind or by hired 
labour under personal supervision or the personal 
supervision of any member of the family; 
(8) "Appellate Authority" means an authority appointed or 
authorised to hear appeals as referred to in section 107: 
(9) "Appellate Tribunal" means the Goods and Services Tax 
Appellate Tribunal referred to in section 109; 
(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 enterprises" shall have the same meaning as 
Assigned to it in section 92A of the Income-tax Act, 1961; 
(13) "audit" means the examination of records, returns and 
other documents maintained or furnished by the 
registered person under this Act or the rules made there 
under 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 underthis Act; 
(15) "authorised representative" means the representative as 
referred to under section 116 
54 of 1963 	 (16) "Board" means the Central Board of Excise and Customs 
366 

constituted under the Central Boards of Revenue Acts, 
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); 
(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 
licence 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 
367 

an enterprise that is engaged in the supply of individual 
goods or services or a group of related goods or services 
which is subject to risks and returns that are different from 
thoseofthe other business verticals. 
38 of 1949. 
Explanation- For the purposes of this clause, factors that 
should be considered in determining whether goods or 
services are related include- 
(a) the nature of the goods or services; 
(b) the nature of the production processes; 
(c) the type or class of customers forthe goods or services; 
(d) the methods used to distributed 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 values 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 section9 of Central Goods and Services Tax 
Act; 
(22) "cess" shall have the same meang 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; 
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(24) "Commissioner" means the Commissioner of State tax 
Appointed under section 3 and includes the Principal 
Commissioner or 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; 
(26) "common portal" means the common goods and services 
tax electronic portal referred to in section 146; 
(27) "common working days" shall mean such days in succession 
which are not declared as gazetted holidays by the Central 
Government orthe Government of Nagaland 
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 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- 
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(a) any payment made or to be made, whether in money or 
otherwise, in respectof, in responseto, orforthe 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 ora State Government; 
Provided that a deposit given in respect of the supply of 
goodsor 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 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; 
23 of 1959 
(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 
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Clause (c) of sub-section (1) of section 2 of the Cost and 
Works Accountants Act, 1959; 
21 of 2000. 
(36) "Council" means the Goods and Services Tax Council 
established under article 279A of the Constitution; 
(37) "credit note" means a document issued by a registered 
person under sub-section (1) of section 34; 
(38) "debit note" means a document issued by a registered 
person under sub-section (3) of section 34; 
(39) "deemed exports" means such supplies of goods as may be 
notified under section 147; 
(40) "designated authority" means such supplies of goods as 
maybe notified by the Commissioner; 
(41) "document" includes written or printed record of any sort 
and electronic record as defined in clause (t) of section 2 of 
the Information Technology Act, 2000; 
(42) "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 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; 
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(46) 	 "electronic credit ledger" means the electronic credit 
ledger referred to in sub-section (2) of section 49; 
(47) "exempt supply" means supply of any goods or services or 
both which attracts nil rate of tax or which may be wholly 
exempt from tax under section 11, or under section 6 of the 
Integrated Goods and Services Tax Act, and includes non-
Taxable supply; 
(48) "existing law" means any law, 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, 
orto 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 moveable property otherthan 
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 
orundera contract of supply; 
(53) "Government" means the Government of Nagaland; 
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(54) "Goods and Services Tax (Compensation to State) 
Act"means the Goods and Services Tax (Compensation to 
States) Act, 2017; 
(55) "goods and services tax practitioner" means any person 
who has been approved under section 48 to act as such 
practitioner; 
80 of 1976 (56) "India" means the territory of India as referred to in article 
lof the Constitution, its territorial waters, seabed and sub-
soil underlying such waters, Continental Shelf, Exclusive 
Economic Zone or any other Maritime Zones as referred to 
in the Territorial Waters, Continental Shelf, Exclusive 
Economic Zone and other Maritime Zone Act, 1976, and the 
airspace 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 Service 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; 
373 

(62) "input tax" in relation to a registered person, means the 
central tax, State tax, integrated tax or Union territory tax 
charged on any supply of goods or services or both made to 
him and includes- 
(a) the integrated goods and services tax charged on import of 
goods; 
(b) the tax payable under the provisions of sub-section (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 underthe provisions of sub-sections (3) and 
(4) of section 9 of the central goods and services Tax Act, but 
does not include the tax paid under the composition levy; 
(63) "input tax credit" means the credit of input tax; 
(64) "intra-state supply of goods" shall have the same meaning 
as assigned to it in section 8 of the Integrated Goods and 
Services Tax Act; 
(65) 	 "intra-state supply of services" shall have the same 
meaning as assigned to it in section 8 of the Integrated 
Goods and Services Tax Act; 
(66) "invoice" or "tax invoice" means the tax invoice referred to 
in section 31; 
(67) "inward supply" in relation to a person, shall mean receipt 
of goods and 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 other registered person and 
the expression "job worker" shall be construed accordingly; 
374 

(69) 	 "local authority" means- 
(a) a "Panchayat" as defined in clause (d) of article 243 of the 
Constitution; 
(b) a "Municipality" as defined in clause (e) of article 243P of the 
Constitution; 
(c) a Municipal Committee, a Zilla Parishad, a District Board, 
and any other authority legally entitled to, or entrusted by 
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 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 supply is received at a place of business for 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 
the 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 placeof 
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; 
375 

(b) where a supply is received at a place other than the place of 
the 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 receipt 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 any 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 obtained 
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, cake, 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 
376 

recognized 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; 
59 of 1988 	 (76) "motor vehicle" shall have the same meaning as assigned to 
it in clause (28) of section 2 of the Motor Vehicle 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 bh 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 
out ,  ide 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; 
(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; 
377 

(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 oroutside 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; 
21of 1860 	 (j) 	 a local authority; 
(k) 	 Central Government or a State Government; 
(I) 	 society as defined under the Societies Registration Act, 
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 persons store his goods, supplies or 
receives goods or services 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 Service Tax Act; 
(87) "prescribed" means prescribed by rules made under this Act 
on the recommendations of the Council; 
378 

(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 elements 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 means 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; 
379 

(94) "registered person" means a person who is registered 
under section 25 but does not include a person having a 
Unique Identity Number. 
(95) "regulation" means the regulations made by the 
Government under this Act on the recommendations of the 
Council; 
(96) "removal" in relation to goods, means- 
(a) 	 despatch of the goodsfor 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 
Goodsand ServicesTaxAct; 
(99) "Revisional Authority" means an authority appointed or 
authorised for revision of decision or orders as referred to in 
section 108; 
42 of 2956 
(100) "Schedule" means a Schedule appended to this Act; 
(101) "securities" shall have the same meaning as assigned to it in 
42 of 2956. 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, 
380 

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 Nagaland; 
(104) "State tax" means the tax levied underthis Act; 
(105) "supplier" in relation to any goods or services or both, shall 
means 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 undersection 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; 

(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 territorytax, integrated tax and cess; 
(113) 	 "usual place of residence" means- 
(a) in case of an individual, the place where he ordinary 
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; 
(b) Lakshadweep; 
(c) Dadra and Nagar Haveli; 
(d) Daman and Diu; 
(e) Chandigarh; and 
(1) otherterritory; 
Explanation: For the purpose of this Act each of the 
territories specified in sub-clauses (a) to (f) shall be 
consideration 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; 
382 

(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 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 	 entral 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. 	 The Government shall, by notification, appoint the following 	 officers 
classes of Officers for the purposes of this Act, namely:- 	 under this 
Act. 
(a) Principal Commissioner or Chief Commissioner of State tax, 
(b) Special Commissioners of State tax, 
(c) Additional Commissioners of State tax, 
(d)Joint Commissioners of State tax, 
(e) Deputy Commissioner of State tax, 
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(f) Assistant Commissioners of State tax, and 
(g) any other class of officers as it may deem fit: 
4 of 2005 	 Provided that, the officers appointed under the Nagaland Value 
Added Tax Act,] 
2005 shall be deemed to be the officers appointed under the 
provisions of this Act. 
4. (1)The Government may, in addition to the officers as 
may be notified Under section 3, appoint such Appointment 
persons as it may think fit to be the Officers under of Officers 
this Act. 
(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, subjects 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. 
5. 	 (1) Subject to such conditions and limitations as the 
Commissioner may impose, an officer of State tax 	 Powers 
may exercise the powers and discharge the duties of Officers 
conferred or imposed on him underthis 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 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. 
384 

6. 	 (1) without prejudice to the provisions of 
this Act, the officers appointed under the 	 Authorization 
Central Goods and Services Tax Act are 	 of central tax 
of officers 
authorised to be the proper officers for the 	 as proper officer 
in certain circumstance purposes of this Act, subject to such 
conditions as the Government shall, on the 
recommendations of the Council, by notification, specify. 
(2) 
	
Subject to the conditions specified in the notification issued Under 
sub-section (1),- 
a) 	 where any proper officer issues an order under this Act, he shall 
also issue an order under the Central Goods and Services Tax Act, as 
authorised i-" the said Act under intimation to the jurisdictional 
officers of central tax; 
(b) 	 where a proper officer under the Central Goods and Services Tax Act 
has initiated 3ny proceedings on a subject matter, no proceedings 
shall be initiated by the proper officer under this Act on the same 
subject matter. 
(C) Any proceedings for rectification, appeal and revision, wherever 
applicable, of any order passed by an officer appointed under this 
Act, shall not lie before an officer appointed under the Central 
Goods and Services Tax Act. 
385 

CHAPTER VI 
LEVY AND COLLECTION OF TAX 
7. 	 (1) Forthe 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, licence, 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 (I),- 
(a) activities ortransactions specified in Schedule Ill; or 
(b) Such or transactions undertaken by the Central Government, a State 
Government or any local authority in which they are engaged as public 
authorities, as may be notified by the Government on the 
recommendations of the Council, Shall be treated neither as a supply of 
goods nor a supply of services. 
(3) 	 Subject to the provisions of 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- 
(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. 
386 

(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 Nagaland goods and services tax on all intra- 	 Levy and 
collection 
State supplies of goods or services or both, except on the 
supply of alcoholic 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 maybe prescribed and shall be 
paid by the taxable person. 
(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 reserve charge basis by the recipient of such 
goods or services or both and all the provisions of this Act shall apply to such 
recipient as if he is the person liable for paying the tax in relation to the 
supply of such goods or services or both. 
(4) 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 reserve 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 the intra-State 
supplies of which shall be paid by the electronic commerce operator if 
387 

such services are 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 payingthe tax in relation to the supply of such service: 
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 purposes in the taxable territory 
shall be liable to paytax: 
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 person shall be liable to paytax. 
10 	 (1) Notwithstanding anything to the contrary contained in this Act but 
subject to the provisions of sub-sections (3) and (4) of section Composition 
9, a registered person, who aggregate turnover in the 	 Levy 
preceding financial year did not exceed fifty lakh rupees may 
opt to pay, in lieu of the tax payable by him, and amount calculated at such 
rate as maybe prescribed, but not exceeding,- 
(a) one percent. of the turnover in State in case of a manufacturer, 
(b) two and a halfper cent. of the turnover in a State in case of persons engaged 
in making supplies referred to in clause (b) of paragraph 6 of schedule II, and 
(c) half per cent. of the turnover in State in case df 0th ersuppliers, 
Subjects to such conditions and restrictions as maybe prescribed: 
Provided that the Government may, by notification, increase the said limit 
of fifty lakhs 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 6of schedule II; 
388 

(b) he is not engaged in making any supply of goods which are not leviable to 
tax underthis Act; 
(c) he is not engaged in making any inter-State outward supplies of goods; 
(d) he is not engaged on making any supply of goods through an lectronic 
commerce operator who is required to collect tax atsource 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 
43 of Act 1961, the Income tax registered person shall not be eligible to opt 
for the scheme under sub-section (1) unless all such 
registered person opt to paytax underthat 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 penalty and the provisions of section 73 or section 
74 shall, mutatis mutandis, apply for determination of tax and penalty. 
389 

11. (1) where the Government is satisfied that it is necessary in Powerto grant 
the public interest so to do, it may, on the exemption 
recommendations of the Council by notification, exempt 	 from tax 
generally, either absolutely or subject tosuch conditions as may be 
specified therein, goods or services or both of any specified description 
from the whole or any part of the tax leviable thereon with effect from 
such date as maybe specified in such notification 
(2) Where the Government is satisfied that it is necessary in the public 
interest so to do, it may, on the recommendations of the Council. by special 
order in each case., under circumstance of an exceptional nature to be 
stated in such order. Exempt from payment of tax any goods or services or 
both on which tax is leviable. 
(3) The Government may, if it considers necessary or expedient so to do for the 
purpose of clarifying the scope or applicability of any notification issued 
under sub-section( 1) or order issued under sub-section( 2), insert an 
explanation in such notification or order, as the case may be, by notification 
at any time within one year of issue of the notification under sub- section 
(1) or order under sub-section (2), and every such explanation shall have 
effect as if it had always been the part of the first such notification or order, 
as the case may be. 
(4) Any notification issued by the Central Government. On the 
recommendations of the council, under sub-section (1) of section 11 or 
order issued under sub-section (2) of the said section of Central Goods and 
Services Tax Act shall be deemed to be a notification, or as the case may be, 
an order issued under this Act. 
Explanation: - For the purposes of this section, where an exemption in 
respect of any goods or services or both from the whole or part of the tax 
leviable thereon has been granted absolutely, the registered person 
supplying such goods or services or both shall not collect the tax, in excess 
of the effective rate, on such supply of goods or services or both. 
390 

CHAPTER IV 
TIME AND VALUE OF SUPPLY 
12. (1) The liability to pay tax on goods shall arise at the time of 
supply, as determined in accordance with the provisions of 
this section 
(2) The time of supply of goods shall be the earlier of the 
following dates, namely:- 
Time of 
Supply of 
goods 
(a) the date of issue of invoice by the 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 whic, he supplier receives the payment with respectto the 
supply; 
Provided that where the supplier of taxable goods receives an amount up to 
one thousand rupee in excess of the amount indicated in the tax invoice, 
the time of supply to the extent of such excess amount shall, at the option of 
the said supplier, be the date of issue of invoice in respect of such excess 
amount 
Explanation 1.- For the purposes of clause (a) and (b), "supply" 	 shall be 
deemed to have been made to the extent of-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 taxis paid or liable to be paid on 
reserve charge basis, the time of supply shall be the earliest of the following 
dates, namely:- 
391 

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