Rajasthan Goods and Services Tax (Amendment) Act, 2018

Oct 25, 2018 | by Avantis RegTech Legal Research Team


The State Government of Rajasthan on October 04, 2018 has published the Rajasthan Goods and Services Tax (Amendment) Act, 2018 to further amend the Rajasthan Goods and Services Tax Act, 2017.

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

·         In Section 9 which specifies the procedure for Levy and Collection of Tax, 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.”.

·         In sub-section (2) of section 16 which gives the provisions regarding eligibility and conditions for taking input tax credit:

a.       In clause (b), for the existing 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, service:

(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.”; and

b.      In clause (c), for the existing expression “section 41”, the expression “section 41 or section 43A” shall be substituted.

 

·      In section 17 which gives the provisions for apportionment of credit and blocked credits:

a.       In sub-section (3), the following explanation shall be added, 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.";

b.      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— 

(iii)   in the manufacture of such motor vehicles, vessels or aircraft; or 

(iv)  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 22 which specifies the provisions regarding persons liable for registration:

(a)    in proviso to sub-section (1), for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the proviso so amended, the following proviso shall be added, 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."; and

(b)    in clause (iii) of explanation, after the existing word “Constitution” and before the existing punctuation mark ".", the expression “ except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.

·         In Section 25 which gives the procedure for registration:

(a)    in proviso to sub-section (1), for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the proviso so amended, the following proviso shall be added, namely:

 “Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005 (Central Act No. 28 of 2005), in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the State."; and

(b)   for the existing proviso to sub-section (2), the following proviso shall be substituted, namely:

"Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.".

 

·         In Section 39 which gives the provisions regarding furnishing of returns by taxable persons:

a.       in sub-section (1):

                           i.      for the existing expression “in such form and manner as may be prescribed”, the expression “in such form, manner and within such time as may be prescribed” shall be substituted;

                         ii.      the existing expression “on or before the twentieth day of the month succeeding such calendar month or part thereof” shall be deleted; and

                        iii.      for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the sub-section (1) so amended, the following proviso shall be added, 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.”;

b.      after the sub-section (7), the following proviso shall be added, 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.”; and

c.       in sub-section (9):

                           i.      for the existing expression "in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed", the expression "in such form and manner as may be prescribed" shall be substituted; and

                         ii.      in proviso, for the existing expression “the end of the financial year”, the expression “the end of the financial year to which such details pertain” shall be substituted.

 

·         In Section 49 which provides for payment of tax, interest, penalty and other amounts:

(a)    in sub-section (2), for the existing expression “section 41”, the expression “section 41 or section 43A” shall be substituted; and

(b)   in sub-section (5):

(i)                  after the clause (c), the following proviso shall be added, 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;”; and

(ii)                after the clause (d), the following proviso shall be added, 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;”.

 

·         In Section 54 which gives provisions regarding refund of tax claimed by any person:

(a)    in clause (a) of sub-section (8), for the existing expressions “on zero-rated supplies” and "such zero-rated supplies", the expressions "on export" and "such exports" shall respectively be substituted; and

(b)   in clause (2) of the Explanation:

(i)                  in item (i) of sub-clause (c), after the existing expression “foreign exchange” and before the existing expression ", where the supply", the expression “or in Indian rupees wherever permitted by the Reserve Bank of India” shall be inserted; and

(ii)                for existing sub-clause (e), the following shall be substituted, namely:

“(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;”.

·         Insertion of:

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

b.      Section 49A: Utilisation of input tax credit subject to certain.  

c.       Section 49B: Order of utilisation of input tax credit.

 

[No. F. 2 (36) Vidhi/2/2018]

 

URL: http://rajtax.gov.in/vatweb/download/gst/ARNR/RGST.pdf


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