In pursuance of the provisions of clause (3) of Article 348 of the Constitution, the Governor is pleased to order the publication of the following English translation of the Uttar Pradesh Mal Aur Sewa Kar (Sanshodhan) Adhiniyam, 2020 (Uttar Pradesh Adhiniyam Sankhya 5 of 2020) as passed by the Uttar Pradesh Legislature and assented to by the Governor on March 11, 2020. The Rajya Kar Anubhag-2 is administratively concerned with the said Adhiniyam.
THE UTTAR PRADESH GOODS AND SERVICES TAX
(AMENDMENT) ACT, 2020
(U.P. Act no. 5 of 2020)
[As passed by the Uttar Pradesh Legislature]
An
Act
further to amend the Uttar Pradesh Goods and Services Tax Act, 2017.
It is hereby enacted in the Seventy-first Year of the Republic of India as follows:-
1. Short title and commencement
(1) This Act may be called the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020.
(2) The provisions of sections 3,4,5,6,8,9,11,12 and 21 of this Act shall be deemed to have come into force with effect to the 1st January, 2020 and provisions of sections 2,7,10,13,14,15,16,17,18,19 and 20 of this Act shall come into force at such date as the State Government may, by notification in the Gazette, appoint.
2. Amendment of section 2
In section 2 of the Uttar Pradesh Goods and Services Tax Act, 2017 hereinafter referred as the principal Act, in clause (4) after the words "the Appellate Authority for Advance Ruling,", the words "the National Appellate Authority for Advance Ruling," shall be inserted;
3. Amendment of section 10
In section 10 of the principal Act,-
(a) in sub-section (1) after the second proviso the following Explanation shall be inserted, namely:-
"Explanation.- For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State.";
(b) in sub-section (2),-
(i) in clause (d), the word ''and " occurring at the end shall be omitted;
(ii) in clause (e), for the word "Council:", the words "Council; and" shall be substituted;
(iii) after clause (e), the following clause shall be inserted, namely:-
"(f) he is neither a casual taxable person nor a non-resident taxable person:";
(c) after sub-section (2), the following sub-section shall be inserted. namely:-
"(2A) 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, not eligible to opt to pay tax under sub-section (1) and sub-section (2), 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 under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding three percent of the turnover in State, if he is not,-
(a) engaged in making any supply of goods or services which are not leviable to tax under this Act;
(b) engaged in making any inter-State outward supplies of goods or services;
(c) engaged in making any supply of goods or services through an electronic commerce operator who is required to collect tax at source under section 52;
(d) a manufacturer of such goods or supplier of such services as may be notified by the Government on the recommendations of the Council; and
(e) a casual taxable person or a non-resident taxable person:
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 this subsection unless all such registered persons opt to pay tax under this subsection.";
(d) in sub-section (3), after the words, brackets and figure "under subsection (1)" at both the places where they occur, the words, brackets, figure and letter "or sub-section (2A), as the case may be," shall be inserted.
(e) in sub-section (4), after the words, brackets and figure "of sub-section (1)", the words, brackets, figure and letter "or, as the case may be, sub-section (2A)" shall be inserted.
(f) in sub-section (5), after the words, brackets and figure "under subsection (1)", the words, brackets, figure and letter "or sub-section (2A), as the case may be," shall be inserted.
(g) after sub-section (5), the following Explanations shall be inserted, namely:-
Explanation 1.- For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression "aggregate turnover" shall include the value of supplies made by such person to the 1st day of April of a financial year upto the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.
Explanation 2.- For the purposes of determining the tax payable by a person under this section, the expression "turnover in State or turnover in Union territory, shall not include the value of following supplies, namely :-
(i) supplies to the first day of April of a financial year upto the date when such person becomes liable for registration under this Act; and
(ii) exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.'.
4. Amendment of section 22
In section 22 of the principal Act, in sub-section (1), after the second proviso, the following proviso and explanation shall be inserted, namely:-
"Provided also that the Government may, on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.
Explanation.- For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.".
5. Amendment of section 25
In section 25 of the principal Act, after sub-section (6), the following subsections shall be insertednamely,-
"(6A) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed:
Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe:
Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions of this Act shall apply as if such person does not have a registration.
(6B) On and from the date of notification, every individual shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify in the said notification:
Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.
(6C) On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorized signatory and such other class of persons, in such manner, as the Government may, on the recommendation of the Council, specify in the said notification:
Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.
(6D) The provisions of sub-section (6A) or sub-section (6B) or subsection (6C) shall not apply to such 'person or class of persons or any State or part thereof, as the Government may, on the recommendations of the Council, specify by notification.
Explanation.- For the purposes of this section, the expression "Aadhaar number" shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (Act no of 2016).".
6. Insertion of new section 31A
After section 31 of the principal Act, the following section shall be inserted, namely:-
"31A. Prescribe Facility off digital payment to recipient
The Government may, on the recommendations of the Council, a class of registered persons who shall provide prescribed modes of electronic payment to. the recipient of supply of goods or services or both made by him and give option to such recipient to make payment accordingly, in such manner and subject to such conditions and restrictions, as may be prescribed,".
7. Amendment of section 39
In section 39 of the principal Act,-
(a) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely;-
"(1) Every registered person,.other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and; within such time, as may be prescribed:
Provided that the Government may, on the recommendations of the Council, notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictions as may be specified therein.
(2) A registered person paying tax under the provisions of section 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time, as may be prescribed.";
(b) for sub-section (7), the following sub-section shall be substituted, namely:- "(7) Every registered person who is required to furnish a return under subsection (1), other than the person referred to in the proviso thereto, or subsection (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return:
Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month, in such form and manner, and within such time, as may be prescribed:
Provided further that every registered person furnishing return under subsection (2) shall pay to the Government the tax due taking into account turnover in the State inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time, as may be prescribed.".
8. Amendment of section 44
In section 44 of the principal Act, in sub-section (1), the following provisos shall be inserted, namely:-
"Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of Central tax shall be deemed to be notified by the Commissioner.".
9. Amendment of section 49
In section 49 of the principal Act, after sub-section (9), the following subsections shall be inserted, namely:-
"(10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.
(11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).".
10. Amendment of section 50
In section 50 of the principal Act, in sub-section (1), the following proviso shall be inserted, namely:-
"Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger ".
11. Amendment of section 52
In section 52 of the principal Act,-
(a) in sub-section (4), the following provisos shall be inserted, namely:-
"Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the statement for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of Central tax shall be deemed to be notified by the Commissioner.";
(b) in sub-section (5), the following provisos shall be inserted, namely:-
"Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual statement for such class of registered persons as may be specified therein:
12. Insertion of new section 53A
After section 53 of the principal Act, the following section shall be inserted, namely:-
"53A. Transfer of certain amounts
Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger for Central Tax or integrated tax or cess, the Government shall, transfer to the Central tax account, or integrated tax account or cess account an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time as may be prescribed.".
13. Amendment of section 54
In section 54 of the principal Act, after sub-section (8), the following subsection shall be inserted, namely:-
"(8A) Where the Central Government has disbursed the refund of the State tax, the Government shall transfer an amount equal to the amount so refunded, to the Central Government.".
14. Amendment of section 95
In section 95 of the principal Act,-
(i) in clause (a),-
(a) after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted;
(b) after the words and figures "of section 100". the words, figures and letter "or of section 101C" shall be inserted:
(ii) after clause (e), the following clause shall be inserted, namely:-
"(f) 'National Appellate Authority' means the National Appellate Authority for Advance Ruling referred to in section 101 A."
15. Insertion of new sections 101A, 101B and 101C
After section 101 of the principal Act, the following sections shall be inserted, namely:-
"101 A. Constitution of National Appellate Authority for Advance Ruling
Subject to the provisions of this chapter, for the purposes of this Act, the National Appellate Authority for Advance Ruling constituted under section 101A of the Central Goods and Services Tax Act, shall be deemed to be the National Appellate Authority for Advance Ruling under this Act.
101B. Appeal to the National Appellate Authority
(1) Where, in respect of the questions referred to in sub-section (2) of section 97, conflicting advance rulings are given by Appellate Authorities of two or more States or Union territories or both under sub-section (1) or sub-section (3) of section 101, any officer authorised by the Commissioner or an applicant, being distinct person referred to in section 25 aggrieved by such advance ruling, may prefer an appeal to National Appellate Authority:
Provided that the officer shall be from the State in which such advance rulings have been given.
(2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the applicants, concerned officers and jurisdictional officers:
Provided that the officer authorised by the Commissioner may file appeal within a period of ninety days from the date on which the ruling sought to be appealed against is communicated to the concerned officer or the jurisdictional officer: Provided further that the National Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, or as the case may be, ninety days, allow such appeal to be presented within a further period not exceeding thirty days.
Explanation:- For removal of doubts, it is clarified that the period of thirty days or as the case may be. ninety days shall be counted from the date of communication of the last of the conflicting rulings sought to be appealed against.
(3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.
101C. Order of National Appellate Authority
(1) The National Appellate Authority may, after giving an opportunity of being heard to the applicant, the officer authorised by the Commissioner, all Principal Chief Commissioners of Central tax and Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories, pass such order as it thinks fit, confirming or modifying the rulings appealed against.
(2) If the members of the National Appellate Authority differ in opinion on any point, it shall be decided according to the opinion of the majority.
(3) The order referred to in sub-section (1) shall be passed as far as possible within a period of ninety days from the date of filing of the appeal under section 101B.
(4) A copy of the advance ruling pronounced by the National Appellate Authority shall be duly signed by the Members and certified in such manner as may be prescribed and shall be sent to the applicant, the officer authorised by the Commissioner, the Board, the Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories and to the Authority or Appellate Authority, as the case may be, after such pronouncement".
16. Amendment of section 102
In section 102 of the principal Act, in the opening portion,-
(a) after the words "Appellate Authority", at both the places where they occur, the words "or the National Appellate Authority" shall be inserted;
(b) after the words and figures "or section 101", the words, figures and letter "or section 101C, respectively," shall be inserted;
(c) for the words "or the appellant", the words "appellant, the Authority or the Appellate Authority" shall be substituted.
17. Amendment of section 103
In section 103 of the principal Act,-
(i) after sub-section (1), the following sub-section shall be inserted, namely:-
"(1A) The advance ruling pronounced by the National Appellate Authority under this Chapter shall be binding on,-
(a) the applicants, being distinct persons, who had sought the ruling under sub-section (1) of section 101B of and all registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961;
(b) the concerned officers and the jurisdictional officers in respect of the applicants referred to in clause (a) and the registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961.";
(ii) in sub-section (2), after the words, brackets and figure "in subsection (1)", the words, brackets, figure and letter "and sub-section (1A)" shall be inserted.
18. Amendment of section 104
In section 104 of the principal Act, in sub-section (1),-
(a) after the words "Authority or the Appellate Authority", the words "or the National Appellate Authority" shall be inserted;
(b) after the words and figures "of section 101", the words, figures and letter "or under section 101C" shall be inserted.
19. Amendment of section 105
In section 105 of the principal Act,-
(a) for the marginal heading, the following marginal heading shall be substituted, namely:-
"Powers of Authority, Appellate Authority and National Appellate Authority";
(b) in sub-section (1), after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted;
(c) in sub-section (2), after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted.
20. Amendment of section 106
In section 106 of the principal Act,-
"Procedure of Authority, Appellate Authority and National Appellate Authority";
(b) after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted.
21. Amendment of section 171
In section 171 of the principal Act, after sub-section (3), the following amendment shall be inserted, namely:-
"(3A) Where the Authority referred to in sub-section (2) after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub-section (1), such person shall be liable to pay penalty equivalent to ten per cent of the amount so profiteered:
Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.
Explanation:- For the purposes of this section, the expression "profiteered"
shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both."
22. (1) The Uttar Pradesh Goods and Services Tax (Amendment) U P. Ordinance, 2020 (Ordinance no. 1 of 2020) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the provisions of the principal Act as amended by the Ordinance referred to in sub-section (1) shall be deemed to have been done or taken under the corresponding provisions of the principal Act as amended by this Act as if the provisions of this act were in force at all material times.