West Bengal Taxation Laws (Amendment) Act, 2018

Dec 20, 2018 | by Avantis RegTech Legal Research Team


The State Government of West Bengal on December 17, 2018 has published the West Bengal Taxation Laws (Amendment) Act, 2018 to amend the West Bengal Sales Tax (Settlement of Dispute) Act, 1999, and the West Bengal Goods and Services Tax Act, 2017.

Some of the major amendment in the West Bengal Sales Tax (Settlement of Dispute) Act, 1999 are as under:

·         Section 4 which specifies the provisions regarding Eligibility of applicant for settlement shall be substituted.

·         Sub-section (1) of Section 4A which specifies Eligibility for settlement of dispute pending before the Tribunal or the High Court or the Supreme Court shall be substituted.

·         In section 5:

o   In sub-section (l):

Clause (a) and (b) shall be substitute:

for the words, figures, letters and brackets “on or before the 30th day of June, 2017, in case of the relevant Act referred to in sub-clause (v) of clause (e) of subsection (1) of section 2, or on or before the 31st day of March, 2017, for all other relevant Acts”, the words, figures and letters “on or before the 31st day of January, 2019,” shall be substituted;

o   after sub-section (1), the following sub-section shall be inserted:

“(la) Where an application for settlement has been submitted under sub-section (1) upon payment of amount as referred in item (B) of sub-clause (ii) of clause (a) of sub-section (1) of section 7, such an application shall be deemed to have been made within the due date only when the applicant furnishes proof of payment of the full amount payable as installments within 10 days from the expiry of three months following the month in which such application was submitted.”;

o   In sub-section (3), for the words “appellate authority or the revisional authority before whom the appeal or revision”, the words “appellate authority, the revisional authority or the reviewing authority before whom the appeal, revision or review” shall be substituted;

o   In sub-section (5), for the words “arrear tax, penalty or interest”, the words “arrear tax, penalty, late fee or interest” shall be substituted;

·         In Section 7:

o   In Sub-section (1):

a.       In Clause (a):

1.       after sub-clause (i), the following sub-clause shall be inserted:

“(ia) to any arrear tax which otherwise is admitted by the assessee in the return furnished, or in writing before any authority, at the rate of hundred per centum, or the actual amount paid in respect of such arrear tax in dispute, whichever is higher;”;

2.       sub-clause (ii) shall be substituted

3.       sub-clause (iii) shall be omitted;

b.      After clause (aa), the following clause shall be inserted:

“(ab) where the dispute relates to any arrear late fee other than the late fee as mentioned in clause (aa), at the rate of zero per centum or the actual amount paid in respect of such arrear late fee in dispute, whichever is higher;”;

c.       Explanation III shall be substituted.

o   Sub-Section (2) shall be substituted.

·         In section 8 which specifies the procedure for Settlement of dispute and issue of certificate of settlement, to sub-section (1), the following proviso shall be added:

“Provided also that the period of fifteen working days as mentioned in this sub-section shall be counted from the date of submission of proof of payment made in instalments as mentioned in sub-section (la) of section 5.”;

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

·         In Section 9 which specifies provisions regarding Levy and collection of tax for sub-section (4), the following sub-section shall be substituted:

“(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 10 which specifies the procedure for Composition Levy:

o   In Sub-section (1):

a.       for the words, “in lieu of the tax payable by him, an amount calculated at such rate”, the words, brackets and figures “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate” shall be substituted;

b.      in the proviso, for the words “one crore rupees”, the words “one crore and fifty lakh rupees” shall be substituted;

c.       after the proviso, the following proviso shall be inserted:

“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 per cent. of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher.”;

o   in sub-section (2), for clause (a), the following clause shall be substituted:

“(a) save as provided in sub-section (1), he is not engaged in the supply of services;”;

·         In section 22 which specifies the procedure for persons liable for registration:

o   In sub-section (1), after the proviso, the following proviso shall be inserted:

“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.”;

o   in the Explanation, in clause (iii), after the words ”Constitution”, the words “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 specifies the procedure for registration:

o   In sub-section (1), after the proviso, the following proviso shall be inserted:

“Provided further that a person having a unit, as defined in the Special Economic Zones Act, 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.”;

o   In sub-section (2), for the proviso, the following proviso shall be substituted:

“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 29 which specifies the provision regarding the cancellation of registration:

o   in the marginal heading, after the word “Cancellation”, the words “or suspension” shall be inserted;

o   in sub-section (1), after clause (c), the following proviso shall be inserted:

“Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.”;

o   in sub-section (2), after the proviso, the following proviso shall be inserted:

“Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.”.

·         In Section 39 which specifies the procedure for Furnishing of returns:

o   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:

“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.”;

o   in sub-section (7), the following proviso shall be inserted:

“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.”;

o   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 procedure for Payment of tax, interest, penalty and other amounts:

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

o   in sub-section (5):

a.       in clause (c), the following proviso shall be inserted:

“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:

“Provided that the input tax credit on account of Union territory, 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 79 which specifies the procedure for recovery of tax:

after sub-section (4), the following Explanation shall be inserted:

‘Explanation.—For the purposes of this section, the word “person” shall include “distinct persons” as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.’;

·         Insertion of Sections:

o   43A: Procedure for furnishing return and availing input tax credit;

o   49A: Utilisation of input tax credit subject to certain conditions;

o   49B: Order of utilisation of input tax credit.

Save as otherwise provided, this section shall come into force with immediate effect, and the other provisions of this Act shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

[Notification No. 2227-L]

 

URL: http://www.wbcomtax.nic.in/GST/GST_Acts_Rules/2227L_20181217.pdf


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