The SIKKIM GOODS AND SERVICE TAX ACT,2017

SIKKIM
GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
lednesday 14th June, 2017 No. 220
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK
Dated: 5thJune, 2017
NOTIFICATION
asse by the Sikkim Legislative Assembly and having received assent of
~y, 2017 is hereby published for general information :-
E SIKKlM GOODS AND SERVICES TAX ACT, 2017
(ACT NO.9 OF 2017)
AN
ACT
. ion for levy and collection of tax on intra-State supply of goods or
by the State of Sikkim and the matters connected therewith or incidental
y Legislature of Sikkim in the Sixty-eighth Year of the Republic of India
CHAPTER I
PRELIMINARY
-- ~ e called the Sikkim Goods and Services Tax Act,2017.
e ole of the Sikkim State
Short title,
extent and
commencement.
e i 0 force on such date as the State Government
'0 in the Official Gazette, appoint:
eren dates may be appointed for different provisions of
in any such provision to the commencement of this Act
eference 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;
(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 auc-
tioneer 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;
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(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
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;
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) anyactivity 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;
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(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 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 ofthis 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 90f the Central Goods and Services Tax
Act;
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38 of 1949.
56 of 1980.
(22) "cess" shall have the same meaning as assigned to it in
the Goods and Services Tax (Compensation to States) Act;
(23) "chartered accountant" means a chartered accountant
as defined in clause (b) of sub-section (1) of section 2"of the
Chartered Accountants Act, 1949;
(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 Sikkim;
(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
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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 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 avehicle;
(35) "cost accountant" means a cost accountant as defined
in clause (c) of sub-section (1) of section 2 of the Cost and Works
23 of 1959. 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;
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(42) "drawback" in relation to any goods manufactured in India
and exported, means the rebate of duty, taxor 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 attractsnil rate of tax or which may be wholly exempt
from tax under section 11, or under section 6 of the Integrated
Goods and ServicesTax 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 ifthey 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 Welfar~ 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
ich are agreed to be severed before supply or under a contract
supply;
'53) "Government" means the Government of Sikkim;
5L) "Goods and Services Tax (Compensation to States) Act"
•....•6G s e Goods a d Services Tax (Compensation to States)
.2
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· 80 of 1976
(55) "goods and services tax practitioner" means any person
who has been approved under section 48to 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 office;
(62) "input tax" in relation to a registered person, means the
central tax, State tax, integrated tax or Union territory tax charged
on any supply of goods or services or both made to him and
includes-
(a) the integrated goods and services tax charged on
import of goods;
(b) the tax payable under the provisions of sub-sections
(3) and (4) of section 9;
(c) the tax payable under the provisions of sub-sections
(3) and (4) of section 5 of the Integrated Goods and
Services Tax Act; or
(d) the tax payable under the provisions of sub-
sections (3) and (4) of section 9 of the Central
Goods and Services Tax Act,
but does not include the tax paid under the composition
levy;
(63) "input tax credit" means the credit of input tax;
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41 of 2006.
(64) "intra-State supply of goods" shall have he sa e ea 9
as assigned to it in section 8 of the Integra ed Goods a . Se . es
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 Councilor a District Council constituted under
the Sixth Schedule to the Constitution;
(f) a Development Board constituted under article 371 of the
Constitution; or
(g) a Regional Council constituted under article 371 A of the
Constitution;
(70) "location of the recipient of services" means,-
(a) where a supply is received at a place of business for
which the registration has been obtained, the location of
such place of business;
(b) where a supply is received at a place other than the place
of business for which registration has been obtained (a
fixed establishment elsewhere), the location of such fixed
establishment;
(c) where a supply is received at more than one
establishment, whether the place of business or fixed
establishment, the location of the establishment most
directly concerned with the receipt of the supply; and
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(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, 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 59 of 1988.
to it in clause (28) of section 2 of the Motor Vehicles Act, 1988;
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1Sof2013.
(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;
(7S) "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;
(SO) "notification" means a notification published in the Official
Gazette and the expressions 'notify' and 'notified' shall be
construed accordingly;
(S1) "other territory" includes territories other than those
comprising in a State and those referred to in sub-clauses (a) to
(e) of clause (114);
(S2) "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;
(S3) "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;
(S4) "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;
(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;
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21 of 1860.
(i) a co-operative society registered under any law relating
to co-operative societies;
U) a local authority;
(k) Central Government or a State Government;
(I) society as defined under the Societies Registration Act,
1860;
(rn) 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 ataxable 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 performed
under this Act, means the Commissioner or the officer of
the State tax who is assigned that function by the
Commissioner;
(92) "quarter" shall mean a period comprising three consecutive
calendar months, ending on the last day of March, June,
September and December of a calendar year;
(93) "recipient" of supply of goods or services or both, means-
(a) where a consideration is payable for the supply of goods
or services or both, the person who is liable to pay that
consideration;
(b) where no consideration is payable for the supply of
goods, the pers.5:>nto whom the goods are delivered or
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~2 of 1956.
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 ofthe goods for delivery bythe supplier thereof
or by any other person acting on behalf of such
supplier; or
(b) collection of the goods by the recipient thereof or by
any other person acting on behalf of such recipient;
(97) "return" means any return prescribed or otherwise required
to be furnished by or under this Act or the rules made
thereunder;
(98) "reverse charge" means the liability to pay tax by the
recipient of supply of goods or services or both instead of
the supplier of such goods or services or both under sub-
section (3) or sub-section (4) of section 9,or under sub-
section (3) or sub-section (4) of section 5 of the Integrated
Goods and Services Tax Act;
(99) "Revisional Authority" means an authority appointed or
authorised for revision of decision or orders 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 Sikkim;
(104) "State tax" means the tax levied under this Act;
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(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;
(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;
(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.
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List is indicative
(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 property in goods (whether as
goods or in some other form) is involved in the execution
of such contract;
(120) words and expressions used and not defined in this Act
but defined in the Integrated Goods and Services Tax Act,
the Central Goods and Services Tax Act, the Union Territory
Goods and Services Tax Act and the Goods and Services
Tax (Compensation to States) Act shall have the same
meanings as assigned to them in those Acts.
3.
CHAPTER II
ADMINISTRATION
The Government shall, by notification, appoint the following Officers under
classes of officers for the purposes of this Act, namely:- this Act.
(a) [Principal/Chief Commissioner] Commissioner of
State tax,
(b) Special Commissioners of State tax,
(c) Additional Commissioners of State tax,
(d) Joint Commissioners of State tax,
(e) Deputy Commissioners of State tax,
(f) Assistant Commissioners of State tax, and
.(g) any other class of officers as it may deem fit:
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30f 2005 Provided that, the officers appointed under the Sikkim 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 Appointment
be notified under section 3,appoint such persons as it of officers.
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 Powers of
exercise the powers and discharge the duties conferred officers.
or imposed on him under this Act.
(2) An officer of State tax may exercise the powers and
discharge the duties conferred or imposed under this Act
on any other officer of State tax who is subordinate to him.
(3) The Commissioner may, subject to such conditions and
limitations as may be specified in this behalf by him,
delegate his powers to any other officer 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 Authorisat[on
officers appointed under the Central Goods and of officers
Services Tax Act are authorised to be the proper of central
officers for the purposes of this Act, subject to such .tax as
conditions as the Government shall, on the proper
recommendations of the Council, by notification, officer
specify. in certain
(2) Subject to the conditions specified inthe notification issued circumstances.
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.
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(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" Scope
includes- 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 inwhich 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.
Tax liability on
composite
and mixed
supplies.
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•
9. (1) Subject to the provisions of sub-section (2), there shall be
levied a tax called the Sikkim goods and services tax on
all intra-State supplies of goods or services or both, exce ~
on the supply of alcoholic liquor for human consurnptio ,
on the value determined under section 15 and at suc
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.
(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 ifsuch 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:
Levy a d
colle ti
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.
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43 of 1961
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) 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" ;
(b) he is not engaged in making any supply of goods which
are not leviable to tax under this Act; J
(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 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).
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Composition
levy.

(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.
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) 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.
(3) The Government may, ifitconsiders 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 ofthe 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.
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Power to
grant
exemption
from tax.

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:-
(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 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 date
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 charqe 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 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.
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Time of
supply of
goods.

(5) Where it is not possible to determine the time of supply
under the provisions of sub-section (2) or sub-section (3

Excerpt shown. Open the full act in Lexace.

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