In pursuance of clause (3) of article 348 of the Constitution of India, the Governor is pleased to authorise the publication in the Rajasthan Gazette of the following translation in the English Language of Rajasthan Maal aur Seva Kar (Sanshodhan) Adhiniyam, 2018 (2018 Ka Adhiniyam Sankhyank 23) :-
THE RAJASTHAN GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018
Act No. 23 of 2018
[Received the assent of the Governor on the 1st day of October, 2018]
An
Act
to amend the Rajasthan Goods and Services Tax Act, 2017.
Be it enacted by the Rajasthan State Legislature in the Sixty-ninth Year of the Republic of India, as follows:-
1. Short title and commencement.-
(1) This Act may be called the Rajasthan Goods and Services Tax (Amendment) Act, 2018.
(2) Save as otherwise provided, the provisions of this Act 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. Amendment of section 2, Rajasthan Act No. 9 of 2017.-
In section 2 of the Rajasthan Goods and Services Tax Act, 2017 hereinafter referred to as the principal Act,-
(a) in clause (4), for the existing expression "the Appellate Authority and the Appellate Tribunal", the expression "the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171" shall be substituted;
(b) in clause (16), for the existing expression "Central Board of Excise and Customs", the expression "Central Board of Indirect Taxes and Customs" shall be substituted;
(c) for the existing sub-clause (h) of clause (17), the following sub-clause shall be substituted, namely:-
"(h) activities of a race club including by way of totalisator or a licence to book maker or activities of a licensed book maker in such club; and";
(d) the existing clause (18) shall be deleted;
(e) in clause (35), for the existing expression "clause (c)", the expression "clause (b)" shall be substituted;
(f) in sub-clause (f) of clause (69), after the existing expression "article 371" and before the existing expression "of the Constitution", the expression "and article 371J" shall be inserted; and
(g) in clause (102), the following Explanation shall be added, namely:-
"Explanation.- For the removal of doubts, it is hereby clarified that the expression "services" includes facilitating or arranging transactions in securities;".
3.Amendment of section 7, Rajasthan Act No. 9 of 2017.-
In section 7 of the principal Act, with effect from the 1st day of July, 2017,-
(a) in sub-section (1) -
(i) in clause (b), after the existing expression "or furtherance of business;", the word "and" shall be inserted and shall always be deemed to have been inserted;
(ii) in clause (c), for the existing expression "; and" appearing at the end, the punctuation mark "." shall be substituted and shall always be deemed to have been substituted; and
(iii) the existing clause (d) shall be deleted and shall always be deemed to have been deleted;
(b) after the existing sub-section (1) and before the existing subsection (2), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely:-
"(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II."; and
(c) in sub-section (3), for the existing expression "sub-sections (1) and (2)", the expression "sub-sections (1), (1A) and (2)" shall be substituted.
4. Amendment of section 9, Rajasthan Act No. 9 of 2017.-
In section 9 of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:-
"(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of 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 such supply of goods or services or both.".
5. Amendment of section 10, Rajasthan Act No. 9 of 2017.-
In section 10 of the principal Act,-
(i) for the existing expression "in lieu of the tax payable by him, an amount calculated at such rate", the expression "in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate" shall be substituted;
(ii) in proviso, for the existing expression "one crore rupees", the expression "one crore and fifty lakh rupees" and for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted; and
(iii) after the proviso so amended, the following proviso shall be added, namely: -
"Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher."; and
(b) in sub-section (2), for the existing clause (a), the following clause shall be substituted, namely: -"(a) save as provided in sub-section (1), he is not engaged in the supply of services;".
6. Amendment of section 12, Rajasthan Act No. 9 of 2017.-
In clause (a) of sub-section (2) of section 12 of the principal Act, the existing expression "sub-section (1) of" shall be deleted.
7. Amendment of section 13, Rajasthan Act No. 9 of 2017.-
In subsection (2) of section 13 of the principal Act, the existing expression "subsection (2) of" occurring in clauses (a) and (b) shall be deleted.
8. Amendment of section 16, Rajasthan Act No. 9 of 2017.-
In subsection (2) of section 16 of the principal Act,-
(a) in clause (b), for the existing explanation, the following explanation shall be substituted, namely:-
"Explanation.-
For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services-
(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;
(ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person"; and
(b) in clause (c), for the existing expression "section 41", the expression "section 41 or section 43A" shall be substituted.
9. Amendment of section 17, Rajasthan Act No. 9 of 2017.-
In section 17 of the principal Act,-
(a) in sub-section (3), the following explanation shall be added, namely:-
"Explanation.- For the purposes of this sub-section, the expression ''value of exempt supply'' shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule.";
(b) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely: -
"(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used-
(i) for making the following taxable supplies, namely:-
(A) further supply of such vessels or aircraft; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):
Provided that the input tax credit in respect of such services shall be available-
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged-
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession:
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.".
10. Amendment of section 20, Rajasthan Act No. 9 of 2017.-
In clause (c) of explanation to section 20 of the principal Act, for the existing expression "under entry 84", the expression "under entries 84 and 92A" shall be substituted.
11. Amendment of section 22, Rajasthan Act No. 9 of 2017.-
In section 22 of the principal Act,-
(a) in proviso to sub-section (1), for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the proviso so amended, the following proviso shall be added, namely:-
"Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover."; and
(b) in clause (iii) of explanation, after the existing word "Constitution" and before the existing punctuation mark ".", the expression " except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand" shall be inserted.
12. Amendment of section 24, Rajasthan Act No. 9 of 2017.-
In clause (x) of section 24 of the principal Act, after the existing expression "commerce operator" and before the existing punctuation mark ";", the expression "who is required to collect tax at source under section 52" shall be inserted.
13. Amendment of section 25, Rajasthan Act No. 9 of 2017.-
In section 25 of the principal Act,-
"Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005 (Central Act No. 28 of 2005), in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the State."; and (b) for the existing proviso to sub-section (2), the following proviso shall be substituted, namely:-
"Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.".
14. Amendment of section 29, Rajasthan Act No. 9 of 2017.-
In section 29 of the principal Act,
(a) in heading, after the existing word "Cancellation" and before the word "of", the expression "or suspension" shall be inserted;
(b) in clause (c) of sub-section (1), for the existing punctuation mark ".", the punctuation mark ":" shall be substituted and after the clause (c) so amended, the following proviso shall be added, namely:-
"Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed."; and
(c) in proviso to sub-section (2), for the existing punctuation mark ".", the punctuation mark ":" shall be substituted and after the proviso so amended, the following proviso shall be added, namely: -
"Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.".
15. Amendment of section 34, Rajasthan Act No. 9 of 2017.-
In section 34 of the principal Act,-
(a) in sub-section (1),-
(i) for the existing expression "Where a tax invoice has", the expression "Where one or more tax invoices have" shall be substituted; and
(ii) for the existing expression "a credit note", the expression "one or more credit notes for supplies made in a financial year" shall be substituted; and
(b) in sub-section (3),-
(ii) for the existing expression "a debit note", the expression "one or more debit notes for supplies made in a financial year" shall be substituted.
16. Amendment of section 35, Rajasthan Act No. 9 of 2017.-
In subsection (5) of section 35 of the principal Act, for the existing punctuation mark ".", the punctuation mark ":" shall be substituted and after the subsection (5) so amended, the following proviso shall be added, namely:-
"Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.".
17. Amendment of section 39, Rajasthan Act No. 9 of 2017.-
In section 39 of the principal Act,-
(i) for the existing expression "in such form and manner as may be prescribed", the expression "in such form, manner and within such time as may be prescribed" shall be substituted;
(ii) the existing expression "on or before the twentieth day of the month succeeding such calendar month or part thereof" shall be deleted; and
(iii) for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the sub-section (1) so amended, the following proviso shall be added, namely: -
"Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.";
(b) in sub-section (7), for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the subsection (7) so amended, the following proviso shall be added, namely:-
"Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein."; and
(c) in sub-section (9),-
(i) for the existing expression "in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed", the expression "in such form and manner as may be prescribed" shall be substituted; and
(ii) in proviso, for the existing expression "the end of the financial year", the expression "the end of the financial year to which such details pertain" shall be substituted.
18. Insertion of new section 43A, Rajasthan Act No. 9 of 2017.-
After the existing section 43 and before the existing section 44 of the principal Act, the following new section shall be inserted, namely:-
"43A. Procedure for furnishing return and availing input tax credit.-
(1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for nonrecovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under subsection (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount,
shall be such as may be prescribed.".
19. Amendment of section 48, Rajasthan Act No. 9 of 2017.-
In subsection (2) of section 48 of the principal Act, after the existing expression "section 45" and before the existing expression "in such manner", the expression "and to perform such other functions" shall be inserted.
20. Amendment of section 49, Rajasthan Act No. 9 of 2017.-
In section 49 of the principal Act,-
(a) in sub-section (2), for the existing expression "section 41", the expression "section 41 or section 43A" shall be substituted; and
(b) in sub-section (5),-
(i) in clause (c), for the existing punctuation mark ";", the punctuation mark ":" shall be substituted and after the clause (c) so amended, the following proviso shall be added, namely:-
"Provided that the input tax credit on account o f State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;"; and
(ii) in clause (d), for the existing punctuation mark ";", the punctuation mark ":" shall be substituted and after the clause (d) so amended, the following proviso shall be added, namely: -
"Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;".
21. Insertion of new sections 49A and 49B, Rajasthan Act No. 9 of 2017.-
After the existing section 49 and before the existing section 50 of the principal Act, the following sections shall be inserted, namely:-
"49A. Utilisation of input tax credit subject to certain conditions.-
Notwithstanding anything contained in section 49, the input tax credit on account of State tax shall be utilised towards payment of integrated tax or State tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.
49B. Order of utilisation of input tax credit.-
Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.".
22. Amendment of section 52, Rajasthan Act No. 9 of 2017.-
In subsection (9) of section 52 of the principal Act, for the existing expression "section 37", the expression "section 37 or section 39" shall be substituted.
23. Amendment of section 54, Rajasthan Act No. 9 of 2017.-
In section 54 of the principal Act,-
(a) in clause (a) of sub-section (8), for the existing expressions "on zero-rated supplies" and "such zero-rated supplies", the expressions "on export" and "such exports" shall respectively be substituted; and
(b) in clause (2) of the Explanation,-
(i) in item (i) of sub-clause (c), after the existing expression "foreign exchange" and before the existing expression ", where the supply", the expression "or in Indian rupees wherever permitted by the Reserve Bank of India" shall be inserted; and
(ii) for existing sub-clause (e), the following shall be substituted, namely:-
"(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;".
24. Amendment of section 79, Rajasthan Act No. 9 of 2017.-
In section 79 of the principal Act, after the existing sub-section (4), the following explanation shall be added, namely: -
"Explanation.- For the purposes of this section, the word "person" shall include "distinct persons" as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.".
25. Amendment of section 107, Rajasthan Act No. 9 of 2017.-
In clause (b) of sub-section (6) of section 107 of the principal Act, after the existing expression "arising from the said order," and before the existing expression "in relation to", the expression "subject to a maximum of twenty-five crore rupees" shall be inserted.
26. Amendment of section 112, Rajasthan Act No. 9 of 2017.-
In clause (b) of sub-section (8) of section 112 of the principal Act, after the existing expression "arising from the said order," and before the existing expression "in relation to", the expression "subject to a maximum of fifty crore rupees" shall be inserted.
27. Amendment of section 129, Rajasthan Act No. 9 of 2017.-
In sub-section (6) of section 129 of the principal Act, for the existing expression "seven days" wherever occurring, the expression "fourteen days" shall be substituted.
28. Amendment of section 143, Rajasthan Act No. 9 of 2017.-
In proviso to clause (b) of sub-section (1) of section 143 of the principal Act, for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the proviso so amended, the following proviso shall be added, namely:-
"Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.".
29. Amendment of Schedule I, Rajasthan Act No. 9 of 2017.-
In paragraph 4 of Schedule I of the principal Act, for the existing expression "taxable person", the expression "person" shall be substituted.
30. Amendment of Schedule II, Rajasthan Act No. 9 of 2017.-
In the heading of Schedule II of the principal Act, after the existing word "ACTIVITIES" and before the existing expression "TO BE", the expression "OR TRANSACTIONS" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2017.
31. Amendment of Schedule III, Rajasthan Act No. 9 of 2017.-
In Schedule III of the principal Act, -
(i) after the existing paragraph 6 and before the existing explanation, the following paragraphs shall be inserted, namely:-
"7. Supply of goods from a place outside India to another place outside India without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.";
(ii) The existing explanation shall be numbered as Explanation 1 and after Explanation 1 as so numbered, the following explanation shall be added, namely:-
"Explanation 2. For the purposes of paragraph 8, the expression "warehoused goods" shall have the same meaning as assigned to it in the Customs Act, 1962 (Central Act No. 52 of 1962).".
Mahavir Prasad Sharma
Principal Secretary to the Government.