THE RAJASTHAN GOODS AND SERVICES TAX ACT, 2017 Notifications
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Body

Bill No. 5 of 2022

EXTRACT OF THE RAJASTHAN FINANCE BILL, 2022

(To be introduced in the Rajasthan Legislative Assembly)

Bill

further to amend the Rajasthan Stamp Act, 1998, the Rajasthan Goods and Services Tax Act, 2017, the Rajasthan Value Added Tax Act, 2003 and the Rajasthan Motor Vehicles Taxation Act, 1951, in order to give effect to the financial proposals of the State Government for financial year 2022-23 and to make certain other provisions.

Be it enacted by the Rajasthan State Legislature in the Seventy-third Year of the Republic of India, as follows:-

CHAPTER III

AMENDMENT IN THE RAJASTHAN GOODS AND SERVICES TAX ACT, 2017

5. Amendment of section 174, Rajasthan Act No. 9 of 2017.-

After the existing subsection (2A) and before the existing sub-section (3) of section 174 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the following new sub-section shall be inserted, namely:-

"(2B) Notwithstanding anything contained in the Acts repealed under subsection (1),-

(i) any rectification of mistake pertaining to any period upto 30th June, 2017 may be initiated under the repealed Acts, suo-moto by assessing authority or on application by the dealer. In case of application by dealer, it shall be disposed of within ninety days from the date of filing and where such application is not disposed of within the said period, the same shall be deemed to have been accepted;

(ii) an ex-parte assessment or best judgment assessment pertaining to any period upto 30th June, 2017 passed under any section of the repealed Acts may be re-opened suo-moto by assessing authority or on application by the dealer submitted manually, directly to assessing authority. In case of application by dealer, assessing authority shall proceed to make a fresh assessment within ninety days from the re-opening of assessment order; and

(iii) where a demand of any amount payable under the repealed Acts including the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956) pertaining to any period upto 30th June, 2017, has been outstanding for any length of time and is irrecoverable for want of any kind of property for being attached and sold, in such cases, demand may be written off through an order in writing, in the manner specified by the Commissioner, Commercial Taxes.".

STATEMENT OF OBJECTS AND REASONS

THE RAJASTHAN GOODS AND SERVICES TAX ACT, 2017

The Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017) which repealed the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), came into force from 01.07.2017. However, a large number of demands and disputes pertaining to the Acts repealed thereunder are outstanding on account of ex-parte assessments and for want of rectification. Therefore, new sub-section (2B) is proposed to be inserted in section 174 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017) so as to empower the assessing authorities to suo-moto rectify the mistakes apparent on the record and suo-moto re-open the ex-parte or best judgment assessments. The manner for writing off irrecoverable demands is also proposed to be specified.

THE RAJASTHAN VALUE ADDED TAX ACT, 2003

Section 52 of the Rajasthan Value Added Tax Act, 2003 provides for write-off of demands. Different pecuniary limits have been prescribed for different levels of officers therein. These limits were fixed at the time of enactment of the Act and have not been revised ever since. Therefore, the said limits are proposed to be increased by amending the said section for goods not subsumed in Rajasthan Goods and Services Tax Act,2017 (Act No. 9 of 2017).

VALIDATION OF ORDERS MADE UNDER THE RAJASTHAN VALUE ADDED TAX ACT, 2003

In order to validate any order made under sub-section (4A) of section 33 and subsection (3A) of section 34 of the Rajasthan Value Added Tax Act, 2003 as amended by sections 9 and 10 of the Rajasthan Finance Act, 2021 (Act No. 3 of 2021) respectively, a new clause is proposed in the Bill.