The Punjab Goods &amp

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Regd. No. NW/CH-22 Regd. No. CHD/0092/2015-2017
Price : Rs 2.70
EXTRAEXTRAEXTRAEXTRAEXTRA ORDINARORDINARORDINARORDINARORDINAR Y YY YY
Published by AuthorityPublished by AuthorityPublished by AuthorityPublished by AuthorityPublished by Authority
CHANDIGARH, FRIDAY, JUNE 23, 2017
(ASADHA 2, 1939 SAKA)
( xxix )
LEGISLATIVE  SUPPLEMENT
Contents Pages
Part - I Acts
The Punjab Goods and Services Tax Act,
2017.
(Punjab Act No. 5 of 2017) .. 21-173
Part - II Ordinances
Nil
Part - III Delegated Legislation
Nil
Part - IV Correction  Slips,  Republications and
Replacements
Nil
PUNJAB GOVT. GAZ. (EXTRA), JUNE 23, 2017
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Definitions.
PART I
GOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL  AND LEGISLATIVE AFFAIRS, PUNJAB
NOTIFICA TION
The 23rd June, 2017
No.9-Leg./2017.-The following Act of the Legislature of the S tate of
Punjab received the assent of the Governor of Punjab on the  22nd day of
June, 2017, is hereby published for general information:-
THE PUNJAB GOODS AND SERVICES TAX ACT, 2017.
(Punjab Act No. 5 of 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 Punjab and the matters connected
therewith or incidental thereto
BE it enacted by Legislature of the State of Punjab in the Sixty-eighth Year of
the Republic of India as follows:-
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Punjab Goods and Services Tax Act,
2017.
(2) It extends to the whole of the State of    Punjab.
(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,––
(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
Short title
extent and
commencement.
4 of 1882.
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person for delivery of such goods or services or both;
(3) “address on record” means the address of the recipient as available
in the records of the supplier;
(4) “adjudicating authority” means any authority, appointed or authorised
to pass any order or decision under this Act, but does not include
the Commissioner, Revisional Authority, the Authority for Advance
Ruling, the Appellate Authority for Advance Ruling,  the Appellate
Authority and the Appellate Tribunal;
(5)   “agent” means a person, including a factor , broker, commission
agent, arhatia, del cr edere agent, an auctioneer or any other
mercantile agent, by whatever name called, who carries on the
business of supply or receipt of goods or services or both on behalf
of another;
(6) “aggregate turnover” means the aggregate value of all taxable
supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies,
exports of goods or services or both and inter-State supplies of
persons having the same Permanent Account Number , to be
computed on all India basis but excludes central tax, State tax,
Union territory tax, integrated tax and cess;
(7) “agriculturist” means an individual or a Hindu Undivided Family
who undertakes cultivation of land–
(a) by own labour, or
(b) by the labour of family, or
(c) by servants on wages payable in cash or kind or by hired
labour under personal supervision or the personal supervision
of any member of the family;
(8) “Appellate Authority” means an authority appointed or authorised
to hear appeals as referred to in section 107;
(9) “Appellate Tribunal” means the Goods 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
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and includes self-assessment, re-assessment, provisional
assessment, summary assessment and best judgement assessment;
(12) “associated enterprises” shall have the same meaning as assigned
to it in section 92A of the Income-tax Act, 1961;
(13) “audit” means the examination of records, returns and other
documents maintained or furnished by the registered person under
this Act or the rules made thereunder or under any other law for
the time being in force to verify the correctness of turnover declared,
taxes paid, refund claimed and input tax credit availed, and to assess
his compliance with the provisions of this Act or the rules made
thereunder;
(14) “authorised bank” shall mean a bank or a branch of a bank
authorised by the Central Government to collect the tax or any
other amount payable under this Act;
(15) “authorised representative” means the representative as referred
to under section 116;
(16) “Board” means the Central Board of Excise and Customs
constituted under the Central Boards of Revenue Act, 1963;
(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
43 of 1961.
54 of 1963.
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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 an
enterprise that is engaged in the supply of individual goods or services
or a group of related goods or services which is subject to risks and
returns that are different from those of the other business verticals.
Explanation. ––For the purposes of this clause, factors that should be
considered in determining whether  goods or services are related include––
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the  goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of 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;
(23) “chartered accountant” means a chartered accountant as defined
in clause (b) of sub-section (1) of section 2 of the Chartered
38 of 1949.
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Accountants Act, 1949;
(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
or the Government of Punjab;
(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––
(a) any payment made or to be made, whether in money or
otherwise, in respect of, in response to, or for the inducement
of, the supply of goods or services or both, whether by the
recipient or by any other person but shall not include any
subsidy given by the Central Government or a State
Government;
(b) the monetary value of any act or forbearance, in respect of,
in response to, or for the inducement of, the supply of goods
or services or both, whether by the recipient or by any other
56 of 1980.
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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
recipient on a regular or periodic basis and includes supply of such
goods as the Government may , subject to such conditions, as it
may, by notification, specify;
(33) “continuous supply of services” means a supply of services which
is provided, or agreed to be provided, continuously or on recurrent
basis, under a contract, for a period exceeding three months with
periodic payment obligations and includes supply of such services
as the Government may, subject to such conditions, as it may , by
notification, specify;
(34) “conveyance” includes a vessel, an aircraft and a vehicle;
(35) “cost accountant” means a cost accountant as defined in clause
(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;
(37) “credit note” means a document issued by a registered person
under sub-section (1) of section 34;
(38) “debit note” means a document issued by a registered person under
sub-section (3) of section 34;
(39) “deemed exports” means such supplies of goods as may be notified
under section 147;
(40) “designated authority” means such authority as may be notified by
the Commissioner;
(41) “document” includes written or printed record of any sort and
electronic record as defined in clause (t) of section 2 of the
Information Technology Act, 2000;
23 of 1959.
21 of 2000.
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(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;
(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 1 1, 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
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to be severed before supply or under a contract of supply;
(53) “Government” means the Government of Punjab;
(54) “Goods and Services Tax (Compensation to S tates) Act” means
the Goods and Services Tax (Compensation to States) Act, 2017;
(55) “goods and services tax practitioner" means any person who has
been approved under section 48 to act as such practitioner;
(56) "India" means the territory of India as referred to in article 1 of the
Constitution, its territorial waters, seabed and sub-soil 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 of fice;
(62) “input tax” in relation to a registered person, means the central tax,
State tax, integrated tax or Union territory tax charged on any
supply of goods or services or both made to him and includes–
(a) the integrated goods and services tax charged on import of goods;
(b) the tax payable under the provisions of sub-sections (3) and (4) of
section 9;
(c) the tax payable under the provisions of sub-sections (3) and (4) of
section 5 of the Integrated Goods and Services Tax Act; or
80 of 1976.
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(d) the tax payable under the provisions of sub-sections (3) and (4) of
section 9 of the Central Goods and Services Tax Act,
but does not include the tax paid under the composition levy;
(63) “input tax credit” means the credit of input tax;
(64) “intra-State supply of goods” shall have the same meaning as
assigned to it in section 8 of the Integrated Goods and Services
Tax Act;
(65) “intra-State supply of services” shall have the same meaning as
assigned to it in section 8 of the Integrated Goods and Services
Tax Act;
(66) “invoice” or “tax invoice” means the tax invoice referred to in
section 31;
(67) “inward supply” in relation to a person, shall mean receipt of goods
or services or both whether by purchase, acquisition or any other
means, with or without consideration;
(68) “job work” means any treatment or process undertaken by a person
on goods belonging to another registered person and the expression
“job worker” shall be construed accordingly;
(69) “local authority” means––
(a) a “Panchayat” as defined in clause (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;
(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,-
41 of 2006.
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(a) where a supply is received at a place of business for which the
registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business
for which registration has been obtained (a fixed establishment
elsewhere), the location of such fixed establishment;
(c) where a supply is received at more than one establishment, whether
the place of business or fixed establishment, the location of the
establishment most directly concerned with the receipt of the supply;
and
(d) in absence of such places, the location of the usual place of residence
of the recipient;
(71) “location of the supplier of services” means,-
(a) where a supply is made from a place of business for which the
registration has been obtained, the location of such place of business;
(b) where a supply is made from a place other than the place of
business for which registration has been obtained (a fixed
establishment elsewhere), the location of such fixed establishment;
(c) where a supply is made from more than one establishment, whether
the place of business or fixed establishment, the location of the
establishment most directly concerned with the provisions of the
supply; and
(d) in absence of such places, the location of the usual place of residence
of the supplier;
(72) “manufacture” means processing of raw material or inputs in any
manner that results in emergence of a new product having a distinct
name, character and use and the term “manufacturer” shall be
construed accordingly;
(73) “market value” shall mean the full amount which a recipient of a
supply is required to pay in order to obtain the goods or services or
both of like kind and quality at or about the same time and at the
same commercial level where the recipient and the supplier are
not related;
(74) “mixed supply” means two or more individual supplies of goods or
services, or any combination thereof, made in conjunction with each
other by a taxable person for a single price where such supply
does not constitute a composite supply.
Illustration: A supply of a package consisting of canned foods, sweets,
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chocolates, cakes, dry fruits, aerated drinks and fruit juices when
supplied for a single price is a mixed supply . Each of these items
can be supplied separately and is not dependent on any other . It
shall not be a mixed supply if these items are supplied separately;
(75) “money” means the Indian legal tender or any foreign currency ,
cheque, promissory note, bill of exchange, letter of credit, draft,
pay order , traveller cheque, money order , postal or electronic
remittance or any other instrument 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;
(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;
(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—
59 of 1988.
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(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;
(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 Government or a State Government;
(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;
(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;
18 of 2013.
21 of 1860.
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(90) “principal supply” means the supply of goods or services which
constitutes the predominant element of a composite supply and to
which any other supply forming part of that composite supply is
ancillary;
(91) “proper officer” in relation to any function to be performed under
this Act, means the Commissioner or the of ficer of the S tate tax
who is assigned that function by the Commissioner;
(92) “quarter” shall mean a period comprising three consecutive calendar
months, ending on the last day of March, June, September and
December of a calendar year;
(93) “recipient” of supply of goods or services or both, means—
(a) where a consideration is payable for the supply of goods or services
or both, the person who is liable to pay that consideration;
(b) where no consideration is payable for the supply of goods, the
person to whom the goods are delivered or made available, or to
whom possession or use of the goods is given or made available;
and
(c) where no consideration is payable for the supply of a service, the
person to whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as
a reference to the recipient of the supply and shall include an agent acting as
such on behalf of the recipient in relation to the goods or services or both
supplied;
(94) “registered person” means a person who is registered under section
25 but does not include a person having a Unique Identity Number.
(95) “regulations” 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 goods for delivery by the supplier thereof or by any
other person acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any other
person acting on behalf of such recipient;
(97) “return” means any return prescribed or otherwise required to be
furnished by or under this Act or the rules made thereunder;
(98) “reverse char ge’’ means the liability to pay tax by the recipient of
supply of goods or services or both instead of the supplier of such
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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” meansan 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;
(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 Punjab;
(104) “S tate tax” means the tax levied under this Act;
(105) “supplier” in relation to any goods or services or both, shall mean
the person supplying the said goods or services or both and shall
include an agent acting as such on behalf of such supplier in relation
to the goods or services or both supplied;
(106) “tax period’ ’ means the period for which the return is required to
be furnished;
(107)“taxable person” means a person who is registered or liable to be
registered under section 22 or section 24;
(108)“taxable supply’’ means a supply of goods or services or both which
is leviable to tax under this Act;
(109)“taxable territory’ ’ means the territory to which the provisions of
this Act apply;
(110)“telecommunication service” means service of any description
(including electronic mail, voice mail, data services, audio text
services, video text services, radio paging and cellular mobile
telephone services) which is made available to users by means of
any transmission or reception of signs, signals, writing, images and
sounds or intelligence of any nature, by wire, radio, visual or other
electromagnetic means;
(111) “the Central Goods and Services Tax Act” means the Central
Goods and Services Tax Act, 2017;
42 of 1956.
12 of 2017.
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(112) “turnover in State”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 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 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;
(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 levied under the Union Territory Goods and Services Tax Act;
(116) “Union Territory Goods and Services Tax Act” means the Union
Territory Goods and Services Tax Act, 2017;
(117) “valid return” means a return furnished under sub-section (1) of
section 39 on which self-assessed tax has been paid in full;
(118) “voucher” means an instrument where there is an obligation to
accept it as consideration or part consideration for a supply of
goods or services or both and where the goods or services or both
to be supplied or the identities of their potential suppliers are either
indicated on the instrument itself or in related documentation,
including the terms and conditions of use of such instrument;
(119) “works contract” means a contract for building, construction,
fabrication, completion, erection, installation, fitting out, improvement,
modification, repair , maintenance, renovation, alteration or
commissioning of any immovable property wherein transfer of
PUNJAB GOVT. GAZ. (EXTRA), JUNE 23, 2017
(ASAR 2, 1939 SAKA)
36
property in goods (whether as goods or in some other form) is
involved in the execution of such contract;
(120) words and expressions used and not defined in this Act but defined
in the Integrated Goods and Services Tax Act, the Central Goods
and Services Tax Act, the Union Territory Goods and Services Tax
Act and the Goods and Services Tax (Compensation to S tates)
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:––
(a) Commissioner of State tax
(b) Additional Commissioners of State tax,
(c) Joint Commissioners of State tax,
(d) Deputy Commissioners of State tax ,
(e) Assistant Commissioners of State tax
(f) State tax Officers
(g) any other class of officers as it may deem fit:
Provided that, the officers appointed under the Punjab 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 persons as it may think fit to be the
officers under this Act.
(2) The Commissioner shall have jurisdiction over the whole of the
State, the Special 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 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 may exercise the powers and
discharge the duties conferred or imposed on him under this Act.
Officers under
this Act.
Appointment
of officers.
Powers of
officers.
Punjab Act
No 8 of 2005
PUNJAB GOVT. GAZ. (EXTRA), JUNE 23, 2017
(ASAR 2, 1939 SAKA)
37
(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. (1) Without prejudice to the provisions of this Act, the officers appointed
under the Central Goods and Services Tax Act 2017 are authorised
to be the proper of ficers for the 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 of ficer 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 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––
(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;
Authorisation
of officers of
central tax as
proper officer
in certain
circumstances.
Scope of
supply .
12 of 2017.
PUNJAB GOVT. GAZ. (EXTRA), JUNE 23, 2017
(ASAR 2, 1939 SAKA)
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(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 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: —
(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 Punjab goods and services tax on all intra-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 may be 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.
Tax liability
on composite
and mixed
supplies.
Levy and
collection.
PUNJAB GOVT. GAZ. (EXTRA), JUNE 23, 2017
(ASAR 2, 1939 SAKA)
39
(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 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 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 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
person 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 of the tax payable by him, an amount calculated at such rate as
may be prescribed, but not exceeding,-
(a) one per cent. of the turnover in State in case of a manufacturer,
(b) two and a half per cent. of the turnover in State in case of
persons engaged in making supplies referred to in clause (b)
Composition
levy.
PUNJAB GOVT. GAZ. (EXTRA), JUNE 23, 2017
(ASAR 2, 1939 SAKA)
40
of paragraph 6 of Schedule II, and
(c) half per cent. of the turnover in State in case of other suppliers,
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 nota 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 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 effectfrom 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.
43 of 1961.
PUNJAB GOVT. GAZ. (EXTRA), JUNE 23, 2017
(ASAR 2, 1939 SAKA)
41
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 services 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.
(2) Wherethe 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.
(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 the
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.
CHAPTER IV
TIME AND VALUE OF SUPPL Y
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:-
(a) the date of issue of invoice by the supplier or the last date o

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