The following Act of the Tamil Nadu Legislative Assembly received the assent of the Governor on the 17th October 2020 and is hereby published for general information:-
An Act further to amend the Tamil Nadu Goods and Services Tax Act, 2017.
BE it enacted by the Legislative Assembly of the State of Tamil Nadu in the Seventy-first Year of the Republic of India as follows:-
1. Short title and Commencement.
(1) This Act may be called the Tamil Nadu Goods and Services Tax (Second Amendment) Act, 2020.
(2) (i) Sections 11 and 14 shall be deemed to have come into force on the 1st day of July 2017;
(ii) Section 12 shall be deemed to have come into force on the 31st day of March 2020;
(iii) Sections 2 and 13 shall be deemed to have come into force on the 30th day of June 2020;
(iv) Section 16 shall come into force at once; and
(v) All the remaining provisions of this Act shall come into force on such date as the State Government may, by notification, appoint.
2. Amendment of section 2.
In section 2 of the Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017.) (hereinafter referred to as the principal Act), in clause (114), for sub-clauses (c) and (d), the following sub-clauses shall be substituted, namely:-
"(c) Dadra and Nagar Haveli and Daman and Diu;
(d) Ladakh;".
3. Amendment of section 10.
section 10 of the principal Act, in sub-section (2), in clauses (b), (c) and (d), after the expression "of goods", the expression "or services" shall be inserted.
4. Amendment of section 16.
In section 16 of the principal Act, in sub-section (4), the expression "invoice relating to such" shall be omitted.
5. Amendment of section 29.
In section 29 of the principal Act, in sub-section (1), for clause (c), the following clause shall be substituted, namely:-
"(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of section 25:".
6. Amendment of section 30
In section 30 of the principal Act, in sub-section (1), for the proviso, the following proviso shall be substituted, namely:-
"Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended,-
(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).".
7. Amendment of section 31.
In section 31 of the principal Act, in sub-section (2), for the proviso, the following proviso shall be substituted, namely:-
"Provided that the Government may, on the recommendations of the Council, by notification,-
(a) specify the categories of services or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed;
(b) subject to the condition mentioned therein, specify the categories of services in respect of which,-
(i) any other document issued in relation to the supply shall be deemed to be a tax invoice; or
(ii) tax invoice may not be issued.".
8. Amendment of section 51.
In section 51 of the principal Act,-
(a) for sub-section (3), the following sub-section shall be substituted, namely:-
"(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.";
(b) sub-section (4) shall be omitted.
9. Amendment of section 122.
In section 122 of the principal Act, after sub-section (1), the following sub-section shall be inserted, namely:-
"(1A) Any person who retains the benefit of a transaction covered under clauses (i), (ii), (vii) or clause (ix) of sub-section (1) and at whose instance such transaction is conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on.".
10. Amendment of section 132
In section 132 of the principal Act, in sub-section (1),-
(1) for the expression "Whoever commits any of the following offences", the expression "Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences" shall be substituted;
(2) for clause (c), the following clause shall be substituted, namely.-
"(c) avails input tax credit using the invoice or bill referred to in clause (b) or fraudulently avails input tax credit without any invoice or bill;";
(3) in clause (e), the expression "fraudulently avails input tax credit" shall be omitted.
11. Amendment of section 140.
In section 140 of the principal Act,-
(1) in sub-section (1), after the expression "existing law", the expression "within such time and" shall be inserted;
(2) in sub-section (2), after the expression "appointed day", the expression "within such time and" shall be inserted;
(3) in sub-section (3), for the expression "goods held in stock on the appointed day subject to", the expression "goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to" shall be substituted;
(4) in sub-section (5), for the expression "existing law", the expression "existing law, within such time and in such manner as may be prescribed" shall be substituted;
(5) in sub-section (6), for the expression "goods held in stock on the appointed day subject to", the expression "goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to" shall be substituted.
12. Insertion of new section 168-A.
After section 168 of the principal Act, the following section shall be inserted, namely:-
"168-A. Power of Government to extend time limit in special circumstances.-
(1) Notwithstanding anything contained in this Act, the Government may, on the recommendations of the Council, by notification, extend the time limit specified in, or prescribed or notified under, this Act in respect of actions which cannot be completed or complied with due to force majeure.
(2) The power to issue notification under sub-section (1) shall include the power to give retrospective effect to such notification from a date not earlier than the date of commencement of this Act.
Explanation.- For the purposes of this section, the expression 'force mav'eure" means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or otherwise affecting the implementation of any of the provisions of this Act.".
13. Amendment of section 172.
In section 172 of the principal Act, in the proviso to sub-section (1), for the expression "three years", the expression "five years" shall be substituted.
14. Amendment of Schedule II.
In Schedule II to the principal Act, in paragraph 4, the expression "whether or not for a consideration," in two places where it occurs, shall be omitted.
15. Retrospective exemption from, or levy or collection of, state tax in certain cases.
(1) Notwithstanding anything contained in the CT&R Department Notification No. 11 (2)/CTR/532(d-4)/2017, dated the 29th June 2017, published at pages 3 to 68 in Part II - Section 2 of Tamil Nadu Government Gazette, Extraordinary, dated 29th June 2017, on the recommendations of the Council, in exercise of the powers under sub-section (1) of section 9 of the principal Act,-
(i) no State tax shall be levied or collected in respect of supply of fishmeal (falling under heading 2301), during the period commencing from the 1 st day of July 2017 and ending with the 30th day of September 2019 (both days inclusive);
(ii) State tax at the rate of six per cent, shall be levied or collected In respect of supply of pulley, wheels and other parts (falling under heading 8483) and used as parts of agricultural machinery (falling under headings 8432, 8433 and 8436), during the period commencing from the 1st day of July 2017 and ending with the 31 st day of December 2018 (both days inclusive).
(2) No refund shall be made of all such tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.
16. Repeal and Saving
(1) The Tamil Nadu Goods and Services Tax (Amendment) Ordinance, 2020
(Tamil Nadu Ordinance 4 of 2020.) and the Tamil Nadu Goods and Services Tax (Second Amendment) Ordinance, 2020 (Tamil Nadu Ordinance 9 of 2020.) are hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinances, shall be deemed to have been done or taken under the said Act, as amended by this Act
(By order of the Governor)
C. GOPI RAVIKUMAR,
Secretary to Government,
Law Department