Jharkhand Goods and Services Tax (Amendment) Ordinance, 2018

Oct 19, 2018 | by Avantis RegTech Legal Research Team


The Government of Jharkhand on October 15, 2018 has published the Jharkhand Goods and Services Tax (Amendment) Ordinance, 2018 to amend the Jharkhand Goods and Services Tax Act, 2017.

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

·         In section 9 which specifies the provisions regarding levy and collection of tax, for subsection (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.”.

·         In section 16 which specifies the provisions regarding eligibility and conditions for taking input tax credit, in subsection (2):

(1)    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.”;

(2)     in clause (c), for the word and figures “section 41”, the words, figures and letter “section 41 or section 43A” shall be substituted.

·         In section 17 which specifies the procedure for apportionment of credit and blocked credits:

(1)    in sub-section (3), the following Explanation shall be inserted, 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.”;

(2)    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

(B)  transportation of passengers; 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.”.

·         In section 39 which specifies the procedure regarding furnishing of returns:

(1)    in sub-section (1):

(a) for the words “in such form and manner as may be prescribed”, the words “in such form, manner and within such time as may be prescribed” shall be substituted;

(b) the words “on or before the twentieth day of the month succeeding such calendar month or part thereof.” shall be omitted;

(c) 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.”;

(2)    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.”;

(3)    in sub-section (9):

(a) for the words “in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed”, the words “in such form and manner as may be prescribed” shall be substituted;

(b) in the proviso, for the words “the end of the financial year”, the words “the end of the financial year to which such details pertain” shall be substituted.

·         In section 49 which specifies the provisions regarding the payment of tax, interest, penaltyand other amounts:

(1)     in sub-section (2), for the word and figures “section 41”, the words, figures and letter “section 41 or section 43A” shall be substituted;

(2)    in sub-section (5),-

(a)    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;”;

(b)   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;”.

·         Insertion of

1.       Section 43A: Procedure for furnishing return and availing input tax credit.

2.       Section 49A: Utilisation of input tax credit subject to certain conditions, and

3.       Section 49B: Order of utilisation of the input tax credit.

 

The provisions of this ordinance shall come into force on such date as the Government of Jharkhand may, by notification in the Official Gazette, appoint. Different dates may be appointed for different provisions of this ordinance and any reference in any such provision to the commencement of this ordinance shall be construed as a reference to the coming into force of that provision.

[Jharkhand Ordinance No. 08, 2018]

URL: http://jhr2.nic.in/egazette/Notification.aspx


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