The NAGALAND GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018

The Nagaland Gazette(cid:9) 15, November, 2018 PART-V NOTIFICATION Dated Kohima?26Oct. 2018. No,LAW/ACT/6-22/2018(cid:9) The Nagaland Goods and Services Tax (Amendment) Act, 2018 (Act No. 6 of 2018) duly assented by the Hon'ble Governor of Nagaland on 03/10/2018 is published herewith for general information. Sdl- IMTIAKUM Deputy Secretary to the Govt. of Nagaland. An Act further to amend the Nagaland Goods and Services Tar Act, 2017. BE it enacted by the Legislature of Nagaland in the Sixty-ninth Year of the Republic of India as follos:- 1. (1) This Act may be called the Nagaland Goods and Services lax (Amendment)sin wie and Act. 2018. mMecn.fIt (2) Save as otherwise provided, the provisions of this Act shall come into force on 5 such date as the State Government may. by notification in the Official Gazette, appoint: Provided that 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. (cid:9) f2ot7 2. In section 2 of the Nagaland Goods and Services Tax Act, 2017 (herein after referred to Arnendn-. to as the principal Act),— (a) in clause (4),— (1) for the words "the Appellate Authority and the Appellate Tribunal", the words, brackets and figures "the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171" shall be substituted; 98(cid:9) The Nagaland Gazette, Part-V(cid:9) 15, November, 2018 (b) in clause (16) for the words 'Central Board of Excise and Customs", the words, Central Board of Indirect Taxes and Customs" shall be substituted: in clause I?. for sub-clause (h). the flkin sub-clause shall be substituted. s namels':— l/t) activities of race club including bs way of 1otatisaio or a license to book maker or activities of a licensed book maker in such club: and" (d) clause (18) shall be omitted; (e) in clause (35). for the ttcrd, braclets and letter 'clause (cr, the word, brackets(cid:9) to and letter "clause (b)" shall be substituted: (I) In clause (69) in sub--clause (0. alter the uord and figures "article 371". the words, figures and letter "and article 3713" shall he inserted; () in clause (/02). the following Explanation shall be inserted. namely:— lrphmazon,—Eor the removal of doubts, it is hereb clarified that the expression 'services" includes facilitating or arranging transactions in securities;' Amendment(cid:9) 3 In section 7 of the principal Act, with effect from the 1st day of Jul). 2017,-- Ofcctton 7 (a) in sub-section (1), - (1) in clause W. aer the words "or furtherance of business;". the word(cid:9) 20 "and" shall be inserted and shall always be deemed to have been inserted, (i:) in clause (c), after the words "a consideration" the word "and" shall be omitted and shall always be deemed to have been omitted; Wi) clause (d) shall be omitted and shall always be deemed to have been omitted; (b) after sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely:--- 11A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall he treated either a,, supply of goods or supply of services as referred to in Schedule (c) in sub-section (3). for the words, brackets and figures -sub- sections. (1) and (2)", the words, brackct, figures and letter ub.sei ions (I). ()A and (2)" shall be substituted Alnendmcifl 4. In section 9 of the principal Act, for sub-section (4), the following sub-section shall of sc,uc,n 9 be substituted, namely:—(cid:9) 35 "(4) The Government ma, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply olspocifled categories of'goods or services or both received from an unregistered supplicr. pay the tax on reverse charge basis as the recipient of such supply of goads or ser% ices or both, and all the provisions Of (his Act shall apply to such recipient as if he is the(cid:9) .n person liable for paying the tax in relation to such supply of goods or services or both.". Ammidmcnt(cid:9) S. In section 10 of the pthipal Act,— of section UI (a) in sub-section (1)—. (i) for the words "in lieu of the tax pa able b him, an amount calculated at 45 such rate", the words, brackets and figures In lieu of the tax payable by him —I— (cid:9)(cid:9) (cid:9) 15, November, 2018 The Nagaland Gazette, Part-V(cid:9) 99 under sub-section (J) of section 9, an amount of tax calculated at such rale" shall be substituted; (d) in the proviso, for the words "one erore rupees", The words "one crore and fifty lakh rupees" shall be substituted; •(W) after the proviso. the following proviso shall be inserted, namely:— "Provided t\srihri- 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 (1) of paragraph 6 of Schedule LI). of value not exceeding ten per cent. of turnover in the State in the w(cid:9) preceding financial year or five lakh rupees. whichever is higher.": (b) in sub-section 2). for clause (a), the following clause shall be substituted, namely:— "(a) save as provided in sub-section (1), he is not engaged in the supply of services;". 6. In section 12 of the principal Act. in sub-section (2). in clause (a), the words, ,mcndme,t brackets and figure "sub-section (!)of" shall be omitted.(cid:9) of szmon 12 7. In section 13 of the principal Act, in sub-section (2), the words, brackets and figure(cid:9) nendmnt "sub-section (2) of" occurring at both the places, shalt be omitted.(cid:9) Of 5C1IOfl 33 8. In section 16 of the principal Act, in sub'section (2),— (cid:9) Amer.dment Of SCC(j0A 14$ (a) in clause (h), for the Explanation, the following E.xp/anauon shall be SUbSUP.ItCd, namely:— Explanation.—For the purposes of this clause, it shll be deemed that the registered person has recied the goods or, as the case may be, services— (I) where the goods are delivered by the supplier to a recipient or an) other person on the direction of such registered person, o. hether acting as an agent or otherwise, before or during movement of goods, either by way of transfer oIdocumenrs 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."; 30(cid:9) (h.) in clause W. for the word and figures "section 4 1'. the words, figures and letter 'secion $l or section 4.A" shall he kubstitutcd. 9. In section t" cf the principal Act,— (cid:9) Amendmcnz ofseetioa 37 (a) in(cid:9) '.n (.. the folowing Explonarion shall be inserted, namely:— 'E(cid:9) the purposes of this sub-section, the expression 35(cid:9) 'value of ecmpt Suppl>" shall not include the value of activities or transactions specified in Schedule Ill, except those specified in paragraph 5 of the said Schedule.': (b) in ub- section (.5). for clauses (a) and (b), the following clauses shall be substituted. namel% 40 '(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 (8) transportation of passengers; or 45(cid:9) (C) imparting training on driving such motor vehicles; 100(cid:9) The Nagaland Gazette, Part-V 15, Noventher, 2018 (era) vessels and aircraft except when they are used— Q) for making the following taxable supplies, namely:— (A) further supply of such vessels or aircraft; or ft) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on flying such aircraft: (ii) for transportation of goods; (ai) 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):(cid:9) to Provided that the input tax credit in respect of such services shall be available— () where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein: (if) where received by a taxable person engaged— (I) in the manufacture of such motor vehicles, vcssets or is aircraft; or (11) 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 07 both— (1) food and beverages, outdoor catering, beauty treatment, health 20 services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause a1 or clause tars) t,cqit 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 dement of a taxable composite or mixed supply; (ii) membership of a club, health and fitness centre; and (cid:9) 30 (110 travel benefits extended to employees on vacation such as leave or home travel CUfl(CSSIOfl; 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..". Aniwdmcnt 10. In section 20 of the principal Act, in the Explanation. in clause (c), for the words of sethail 20 and figures "under entry 84.", the words, figures and letter "under entries U and 92A" shall be substituted. Aancndmcnl 11. In section 22 of the principal Act,— of section 22 (a) after sub-section (1). the following proviso shall be inserted, o namely:— "Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as 4s may be so notified."; 11 (cid:9)(cid:9) 15, November, 2018(cid:9) The Nagaland Gazette, Part-V(cid:9) 101 (b) in the Expignation. in clause (i1), after the word "Constitution" the words "except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assarn, Himachal Pradesh, Meghalaya. Sikkim and Unarakhand" shall be inserted.". 12. In section 24 of the principal Act, in clause (4 after the words "commerce operator". Amendment th words and figures who is required to collect tax at source under section 52" shall he of sectloll, 24 inserted. 13. In section 25 of the principal Act,— Amendment of sectici' 2. (a) in sub-section (/). after the proviso and before the Explanation, the following proviso shall be inserted, namely:— "Provided further that a person having a unit, as defined in the Special to Economic Zones Act, 2005, in a Special Economic Zone or being a Special 28 of 2005, Economic Zone developer shall have to apply fora separate regiStrati0fl as distinct from his place of business located outside the Special Economic Zone in the same State.": is(cid:9) (b) in sub-section (2% for the proviso, the followirg 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.". 20(cid:9) 14. In section 29 of the principal Act,— (cid:9) Amendment (a) in the marginal heading after the word "Cancellation", the words "or (cid:9) D(1tII 0 suspension" shall be inserted: (it) in sub-section (1), after clause (c). the following proviso shall be inserted. namely:- "Provided that during pendency of the proceedings relating to cancellation 25(cid:9) of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed."; in sub-section (2), after the proviso, the fiIloting proviso shall be inserted. (C) namely:- "Provided further that during pendency of the proceedings relating to 30(cid:9) cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.". Amefidmem 15. in section 34 oldie principal Act,— (cid:9) ifeun 34 (a) in sub-section (1).- 33(cid:9) (1) for the words "Where a tax invoice has", the words "Where one or more tax invoices have" shall be substituted; (1) for the words "a credit note", the words 'one or more credit notes for supplies made in a financial year" shall be substituted; (b) in sub-section (3)."' (,) for the wards "Where a tax invoice has". the wards "Where one or more 4!)(cid:9) tax invoices have" shall be substituted; (II) for the words "a debit note", the words "one or more debit notes for supplies made in a financial year" shall be substituted. 16. In section 35 of the principal Act, in sub-section (5),the following proviso shall Amendment of section 3. 45(cid:9) 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 so(cid:9) any law for the time being in force.". (cid:9) 102(cid:9) The Nagaland Gazette, Part-V 15, November, 2018 Amendment (cid:9) 17. In section 39 of the principal Act,— of section 39(cid:9) - (a) m sub-section (F).— (1) 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;(cid:9) S (ii) the words "on or before the twentieth day of the month succeeding such calendar month or part thereof" shall be omitted: (ii;) 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 to return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.": (5) 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(cid:9) is 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.": (c)(cid:9) in sub-section (9).— (I) for the words "in the return to be furnished for the month or quarter 20 during which such omission or incorrect particulars are noticed", the words "in such form and manner as may be perscribed" shall be substituted, (ii) 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. tnscnic4i of RM 18. After section 43 of the principal Act, the following section shalt be inserted. namel>:—.(cid:9) s section -SM Pruuedine for "43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, rushing section 37 or section 38, every registered person shall in the returns furnished under retuTu raid availing inpial sub-section (1) of section 39 verify, validate, modify or delete the details of supplies tai credit, furnished by the suppliers, (2) Notwithstanding anything contained in section 41, section 42 or section 43, 30 the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed. (3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.(cid:9) 35 (4) The procedure for availing input tax credit in respect of outward Supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent, of the input sax credit available, on the basis of details furnished by the suppliers under the said sub-section.(cid:9) 40 (5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the lax payable by him under the provisions of the Act. (6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case maybe, in relation to 45 outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished. (cid:9) 15, November, 2018(cid:9) The Nagaland Gazette, Part-V(cid:9) 103 7) For the purposes of sub-section (6), the recover- shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees. (8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a S registered person,— within six months of taking registration; (U)(cid:9) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such tO defaulted amount. shall be such as may be prescribed.". 19. In section 48 of the principal Act, in sub-section (2), after the word and figures(cid:9) Amendment "section 45", the words "and to perform such other functions" shall be inserted.(cid:9) of section 45 20.I n section 49 of the principal Act.— (cid:9) Amimdrrai of section 44 is(cid:9) (a) in sub-section (2), for the word and figures "section 41", the words, figures and letter 'section 41 or section 43k" shall be substituted; (b) in sub-section (5).— (I) in clause (e). the foltosing proviso shall be inserted, namely:— "Provided that the input tax credit on account of State tax shall be utilised towards pa ment 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 follov. ng proviso shall be inserted. namely:— "Proided that the input sax credit on account of Union territory tax 25(cid:9) shalt be utilised rcards pa mcnt of integrated tax only where the balance of the input tax credit on account of central tax is not available for paiTlent of integrated tax:" 21. After section 39 of the principal Act, the following sections shall be inserted, insertion of new 5eCt1016 namely:- 49A and 498 "49A. Notwithstanding anything contained in section 49, the input tax credit on tIajht,Om of 30(cid:9) ,nDti* (** account of S:a:e tax s-al, e tiised towards payment cccdit subjeci of integrated tax or State tax as the case may be, only to cenain after the input tax credit a aiabte on account of integrated tax has first been utilised conditions fully tots ards such pamenc. 49B. Norwithstar4ing an.thing contained in this Chapter and subject to the Order of 35(cid:9) provisions of clatse ' an(cid:9) se if of sub-section (5) of section 49, the Goscrnmcnt i u n L p Ii u l% t i a )O x f l of may, on the recommendat:ns of the Council, prescribe the order and manner of Credit utilisation of the input tax ;edit on account of integrated tax, central tax, State tax or Union scmror tax. as the case may be, towards payment of any such tax.". Amendment 22. In section 52 of the princpal Act, in sub-section (9), for the word and figures 40(cid:9) ofscction 52 "section 371, the words and ticures "section 37 or section 39" shall be substituted. Amendment 23. in section 54 of the principal Act.— of section 54. (a) in sub-section (8). in clause (a), for the words "zero-rated supplies", the words "export" and "exports" shall respectively be substituted: 45(cid:9) (4) in the Explanation, in clause (2).— (cid:9) 104(cid:9) The Nagaland Gazette, Part-V (cid:9) 15, November, 2018 (1) in sub-clause (c), in item (1), after the words 'foreign exchange", the words "or in Indian rupees wherever permitted by the Reserve Bank of India" shall be inserted; (ii) for sub-clause (e), the following sub-clause shall be substituted, namely:—(cid:9) . "fr) 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 petted In which such claim for refund arises:". Mtendmes 24.In section 79 of the principal Act, after sub-section (4). the following(cid:9) it of sec-Sun 79. Explanation shall be inserted., namely:— 'Explanaskur.—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.' 25.I n section 107 of the principal Ac;, in sub-section (6), in clause (b), after the IS Amendment of words "arising from the said order,", the words "subject to a maximum of twenty-live Section 107. crore rupees," shall be inserted- 26- In section 112 of the principal Act, in sub-section (8), in clause (b), after the Amendment of words "arising from the said order," the words "subject to a maximum of fifty crore section 112. 20 rupees," shall be inserted. 27. In section 129 of the principal Act, in sub-section (6), for the words "seven ,s.rnendmcnl of scetion 129 days", the words "fourteen days" shall be substituted. 28.I n section 143 of the principal Act, in sub-section( 1). in clause( b), after the ',ncndmrnt of 4thOI proviso, the following proviso shall be inserted, namely:— 143 'Provided further that the period ofnc year and three eats may, on sufficient Cause herng shown, be extended by the Comnussmner for a further period not exceeding one year and two years respectively.". 29.In Schedule I of the principal Act., in paragroph 4,f or the words "taxable(cid:9) Amesdrnmz person". the word "person" shall be substituted.(cid:9) of Schedule I 30.In Schedule II of the principal Act, in the heading, after the word 'ACTIVITIES",(cid:9) Mnd(cid:9) of Schedule 11 the words -OR TRANSACTIONS" shalt be inserted and shall always be deemed to have(cid:9) to(cid:9) been inserted with effect from tlsc 1st day of July, 2037. 31.I n Schedule III of the principal Act. -(cid:9) Anrnrncm Tf Schedule III (t)a fter paragraph 6, the following paragraphs shall be inserted., namely:— Supply of goods from a place in the non-taxable territory to another place in the nontaxablc territory without such goods entering into India. 1$ a) Supply of warehoused goods to any person bcf&c clearance for home consamption; 'l Supply of good- in the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance "0 ttsme cosurnntion.'. tha Lxa. as,,ia shall be nLn1beed as Eplaraaiäon I and sftcr Frp1ww2icn I as so numbered, the following £xplanafion shall be inscfld, namely £xp(asiauo.i 2.—For the purposes of paragraph & the expression 2.(cid:9) ss-arehoused good' shall have the same meaning as assigned to it in 52of 1962 the Customs Act. 1962.