Bihar Goods and Services Tax (Amendment) Ordinance, 2018

Oct 09, 2018 | by Avantis RegTech Legal Research Team


The Government of Bihar on October 5, 2018 has published Bihar Goods and Services Tax (Amendment) Ordinance, 2018 to amend the Bihar Goods and Services Tax Act, 2017.

Some of the major amendments in the Bihar Goods and Services Tax Act, 2017 are as under:

Sections

Current section

Amended section

Section 7: Scope of Supply

(1) For the purposes of this Act, the expression “supply” includes––

(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.

After sub-section (1), 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.”;

 

Section 9: Levy and Collection

(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

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.”.

Section 10: Composition Levy

(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 turn over 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:

Providedthat 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.

 

After the proviso, the following proviso shall be inserted, 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 percent. of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher.”;

 

Section 16: Eligibility and conditions for taking input tax credit

(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,––

(a)    he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;

(b)   he has received the goods or services or both.

Explanation.—For the purposes of this clause, it shall be deemed that the registered person has received the goods 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.

In clause (b), for the 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.”;

 

Section 22: Persons liable for registration

(1) Every supplier making a taxable supply of goods or services or both in the State shall be liable to be registered under this Act if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

 

In sub-section (1), after the proviso, the following proviso shall be inserted, 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.";

Section 35: Accounts and other records

(5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed.

In sub-section (5), the following proviso shall be inserted, 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.”.

Section 39: Furnishing of returns

(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, in such form and manner as may be prescribed, 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 as may be prescribed on or before the twentieth day of the month succeeding such calendar month or part thereof.

 

(7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (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.

 

(1) In Sub-section 1 the following proviso shall be inserted, 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.”;

 

(7) In Sub-section 7 the following proviso shall be inserted, 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.”;

Section 39: Furnishing of returns

(7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (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.

 

In Sub-section 7 the following proviso shall be inserted, 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.”;

Section 49: Payment of tax, interest, penalty and other amount

(5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of ––

(a)     integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order;

(b)     the central tax shall first be utilised to wards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;

(c)      the State tax shall first be utilized to wards payment of State tax and the amount remaining, if any, may be utilized towards the payment of integrated tax;

(d)     the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;

(e)     the central tax shall not be utilised towards payment of State tax or Union territory tax; and

(f)      the State tax or Union territory tax shall not be utilised towards payment of central tax.

In  clause (c), the following proviso shall be inserted, namely:––

 “Provided that the input tax credit on account of 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;”;

 

In clause (d), the following proviso shall be inserted, 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;”

Section 143: Job Work Procedure

(1) A registered person (hereafter in this section referred to as the “principal”) may, under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall:

(a)    bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax;

(b)   supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively ,of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case maybe:

Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case-

(i)      where the job worker is registered under section 25; or

(j)     where the principal is engaged in the supply of such goods as may be notified by the Commissioner

 

In clause (b), after the proviso, the following proviso shall be inserted, 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.”.

 

The Bihar Goods and Services Tax (Amendment) Ordinance, 2018 has also inserted the following Sections:

·         Section 43A giving procedure for furnishing return and availing input tax credit,

·         Section 49A giving provisions for utilisation of input tax credit subject to certain conditions,

·         Section 49B giving power of Government 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 tax.

[Bihar Ordinance No. 1, 2018]

 

URL:https://www.biharcommercialtax.gov.in/bweb/circular.do?strType=NOCC&strActionType=LIST 


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