Amendment status not verified — confirm the current text below against the official source.
(1) The value ofa supply ofgoods or services or both shall Vdueofmbk WPPIY. be the transaction value, which is the price actually paid _ or payable for the said supply of goods or services or :_ both-where the supplier and the recipient ofthe supply are not related and'the price isthe sole consideration for the supply. . 5 ' (2) The value ofsupply shall include- 29 (a) any taxes, duties,- cesses, fees and chaps levied underanylawforthetime‘beinginforceotherthan this AettheCen‘tral GoodsandServieesTuAet and the Goods and Services Tax (Compemation to States) Act. ifcharged separatelybythesupplier; y (b) any amount that the supplier is liable to payin 4 ' 5 relauantosxfisnppiybutwlhehhasbeenmeuned by the reelplentgofthe supply and not includedin the price actuallypaid or payable foi' the goods or - *: services or both; 2e ‘ (c) ' incidental w ", including comriiission and packing, charged by' the supplies to the recipient .ofasupplyanyammmtcharged forahythingdone by the supplierin respect ofthe supply ofgoods or services or both atthe time of, orbeforedelivery of goods or supply ofservices; .(d) interest or laefee or penalty for delayed payment ofany consideration for any supply; and (e) subsidies directlyhnked to the price excluding subsidies providedbythe Central Government and State Governments. , ‘ Explanation:-F0r the purpOSes ofthis sub--section. theamount of subsidy shall be inclhdedin the value 'of supplyofthesupplies who receives the subsidy. (3) (4) (5) The value ofthe supply shall not include any discount which is given— _ . (a) before or at the time of the supply if such discount has been dulyrecorded in the invoice issued 'm respect of such supply; and - (b) after the wpptyhaahoen efl’ected, if- (i) such discount is established in terms of an agreemententeredintoatorbeforethetimeofsuch and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed bythe recipient ofthe supply. Wherethevalueofthesupplyofgoodsorservicesotboth cannot be determined under sub-section (1), the sameshdl be determined in such manner as maybe prescribed. Notwithstanding anything contained in sub-section (1) or sub—section (4). the value of such supplies as may be notified by the Government on the recommendations of the Council shallbedeterminedinsuchmannerasmaybepresa’ibed. 30 Explanatton- For theWd“ All;- ‘persanShaubedmdtohie‘ I I f- (a) (b) (a i-. F: vii. such'persons are ofic‘en o: «bani- .mha's _ businesses; such persons are eniisloyer andflip: any persondirecflyorinlflredlynubcuds twenty five per centormotedthflwfing L, stockor shares ofboth ofthem; one ofthem directiyorhi’directlyen—ltiedhn; both ofthem are direetlyormm». third person; together they directly orindirecflyculdatflllpm Ol' :- :7 viii. they are members'ofthe same firmly; A the term “person? also includes legal persons. - persons who’are associatedinthebusinesofo-e-nths in that one is the sole'agentor sole am «- ode concessionaire, howsoever described, of the hflur. H be deemedtoberelated. 31 WV INPUTTAXCREDIT l6. (1) Everymguteredpersonshakwbjecttosuch‘m andresmctxonsasmaybepmcribedmdmthem specifiedmsectton49.beentitledtomkecreditofinput taxchargedonanysupplyofgoodsorservicesorbothm himwhichareusedormtendedtobeusedinfliecourse orftmheranceofhisbusinessandthesaidamountshall ‘.becreditedtotheelectmniccfeditledgerofsuchperson. '(2) Notwithstanding anything containedinthis section, no personshanbeenufledtothecreditofany ' mputminrespectofanympplyofgoodsormcesor bothtohimunless,— , (a) heisinpossessionofataxinvoiceordebitnote issued by 'a'wpplicr registered under this Act. ormchdthertaxpayingdocumentsasmeybe (b) hehssreceivedthegoodsorservicesomboth. Explanationr—-Forthepurpos'eof’this’daune,it~sinfl-bedeemedthat flieregisteredpersonhasmemdflsegoodswherefliegoodsare deliveredbythesnpphettoarecipientoranyotherpersononthe dimcfionofsudireglstemdpemomwheflieracfingasanagcntor' othemisqbefoxeordufingmovementofgoodseitherbywayof transfer ofdocuments oftitle to goods or otherwise; (c) subject to the provisiom-of section 41, the tax dmgedinrespectofwchwpplyhasbeenachnfly psidtotheGovernmenLfiberinMOt-thsough mammmmmm - ofthesddlupplyssnd _ _ . '(d) hebasfiimishedthetetumfiudersectidiiflt' vaidedthstwhuemegoodsagsinstaninvoicearereceived mlouorinsullmmmflnregimdpersonsimnheenfifledtomke credituponreceiptofdlelastlotorihmument: vaidedfiirflierthstwherearecipientfailstopaymthe supplierofgmdsorservices-m'both, otherthanthempplieson whichtaxispaysbleonreversechargebashtheamounttowards tbevalue ofsupplyalongwitbtaxpayablether‘eonwithinaperiod ofonehundredanddghiydeysfi'omfltedateofissueofinvoiceby thesupplier, anamounteqtnltotheinputmcreditsvsfledbythe mpmntshanbeaddedmhhmnpnmflsflimdongwnhmtemt thmominsuchmannerasmsybeprescribed: . mildwndifiom hHI-riwm 436E1961' L, - 17. 32 Provided also that the recipient shall beallied toad ofthe credit of input tax onpayment made-bylimit“wards the value of supply of .goods or services oi bah h! wih tn payable thereon. (3) (4):; . seeds onservices orbothafterduedaeofinihqcf (l) 5 shall not be allowed. Where theregisteredpgsanlnschndhmm thetaxcompenent 9fthe cost qfcqfldpoballpan and machinery underthepmviflmdfiem Act. 1961. the inputtaxaéaitqpfiudpm Areglistered personshallnotbeent'gledwq‘tu credit in respect ofany invoice ordebitnochqflyd’ the return éuhder Section g9 for the moiihd'Sqdrx following the" trait of fifiancial tear to. -Ihid- ad! inv‘dice' 6r ii'fi'roice relatingto sfichdebit netprim or furnishing of the relevant annual return. vrlidsaer ’3 earlier. ‘ ‘ ' » ‘ Where the} goods or serine‘s or both are used by the registered person partly for the purpose ofanym: and’paxflyz-fotother purposes, the amount d’credi dual _ be restrictedvto so much ofthe.input tax as ism ‘to the Pm“? ofhis business. (2) Where the gdods 0r services or both are used In the registered person partly for efl’ecting usable stub including zero-rated supplies under this Act or mder the Integrat‘e‘d'Goods and Services Tax Act and path for effecting, amph-supplies under the suit! Am the ' amount ofiexeditelfili be restricted to so much cfthe (3) (4) ,- inputtax as is attributable to-the said taxable studies ; including zero-rateq supplies. The value of@th supply under subsection (2), shall be such as may be prescribed, and Shall induk snafu: on whi‘éhé‘flieirecipient is liable to pay tn onm charge basis, transacflonsinsecufifiessaleofhndad. ‘ subject‘to clause (is) ofparagraph 5 ofScheditle II, saled building; ' ’ A‘hanking company or a financial institutionWig afionrhagkmsfinanciaicompany.§nsae=dinmine services byWay ofaecepting deposits. extendingloam or advances shalI have the option to githeg eqmply with the provisighs 6f sub-section (2), o'r‘hvai'l of, every ninth, f an amotmt equal to Wine? cent. '0me eligible inputtax credit on inputék ital goods‘andinfihtséivicesindnt month and the " ' f “ "‘gha'H-‘lap’se: 1:13 4, Apportionment of credit and blocked credits. 33 - ' 'f i375“? a; ’ , Provided that the optiononceenergised shallnotbewithdrawn during the remaining partrofthe financial year: .‘j Provided furtherthat thegggggtion of fifty percent shall not apply to the tax paid on supplieg. mgde by one registered person tpiapother regiStereélppersoh havpg the same Permanent Account "Number. ' ‘ m ‘ ' (5) NotWithstanding anything contained in sub—section (1) of section 16 and sub~section (1) of section 18, input tax- " credit shall nOt be available in’respect of the following, namely:- (a) motor vehicles‘ignth‘tither conveyances except when they are used— (i) for making the followmg' taxable supplies, l .__ (A) furthe’rsupply of sud: vehicles or comyancagm' (B) fianspomfion 7 013mm"”or ' (C) mgmt ,mimng 0” driving, , flyingnavxgatmg .,§uch vehicles or conveyances; ‘ (ii) for hanqurtation ofgoads; (b) , the following supply ofgbods or services or both:- _ (i) food and x: beverages, ,outdoor catering, beauty treatment, health services, cosmetic and plasticrsiu’gerx except where. an inWard supply of goods of services or both bf a particular, ,étegory is used, by ‘4? resistered person formakmgan outWard taxable supply of the same category of goods of services for both or asan element ofa taxable composite or mixed Supply; - - _ (ii) member'ship pf a club, health and fitness V centre; ..» (C)- .plantandmaehmery) exceptwhereitisaninput (d) 34 (iii) rent-a-cab,1ife inmrance and health - msuranceexceptwhm- (A) tli'e‘Gd'yemme‘nt nmifls the services whichareobligatoryfilranemployerto * pféfidetoftsemployeuunderanylaw “fdrfliehmebemgmfixuqor 1 “E(B) 'suchmwardsupplyofgoodsorm orbothofapartiwlarcategqryisused by a registered person for mking an ‘ :‘outward taxable supply. ofthe same "Vcategoryofggodsorservicescrbothor aspartofataxableeoinpositeormixed .snupplxsandfi (iv) teaveltrbenefite extended to employees on vacatien such as leave or home travel concessions . works contract services when studied for ’constructionofanimmovable property (otherthan t,»service for fiitthersupply ofworks contract service; goods,at sefwoes or both received by a taxable person for construction ofan immovable property (otherthan plant ormachinery) on hisownaccount including when such goods or services or both are ?;nsedinthecourse of furtherance ofbusiness Explanation:~For the purposes(ifclauses(c) and (d),the expression construction” includes reconstruction, renovation, or alteratiohs or repairs, to theextent ofcapitalization, to the said immovable property; ‘ ,, .,, Lie) (0 (s) (h) (i) geods or”giants, both on"which tax has been paid under sectionlO; goods or services 61'bbth receivedbyanon—resident taxable person except on goods importedby him; goods or services or both used for personal consumption; ' gobdslost, stolen, destroyed,writtenotterdisposed ofby way ofgift or free samples; and any tax paid in terms ofsections 74. 129 and 130. (6) The Government may prescribe the manner in whidi the credit referred toin sub-sections (1) and (2)maybe attributed. 35 Explanationk For thePW atthis Chapterand ChapterVI, the expression “plantand machinery meansappamtus, equipment, and machinery fixed to earth byfoundation or structural support that are used for making outward supply ofgoods or services or both and includes such foundationand struemr‘alsupports but excludes- ' , (i) land,buifdmgoranyothercivilstructures, (ii) telecommunication towers; and , . (iii) pipelines laid outside thefactorypremises. e (1)subjecttosuch conditionsandrestrictions as may” be ‘pIeseribede - V‘ V siziix’r (a) a person:who hasapplied forregistiation under thisActwithinth‘n’tydaysfrom'thedateonwhich he becomes liable to registratiOn and has been grantedsuchregistrationshallbeemitledtotake creditofinpmtaxinrespectofinpmhddinstock _ mdmpmscmnmrimmfinflwdam ‘: ‘ ' hmmwhflihebeoomeshable tnpaytaxundeethepmvmonsofthism » ib) a 9618011 Whotakes xegistratidn undensub-uetion ‘ x , -:(3) ofseetionzsshallbeEenfifledtotakecreditof‘ ., puttaxinrgsxtpctofmputsheldinstockand' .1-inputsoontamed-iasemi-finishedorfinishedgoods t. gheldinstockgnthe dayimmediatelyprecedmgthe M: 3 date of-grant ofregistration, :, (c) where any registered person ceases to pay tax - " undersection 10, he shall be entitled to takepmdit :ofmputtaxmrespectofmputsbeldmstock. inputs contained in semi-finished or finished goods held'in stock and on mpital goods on the 9 dayunmediatelyprecedmgfliedatefromwhichhe '1 becomesliable topaytaxtinder section 9: Provi (ed that the credit on capital oods shallbe reduced by such percen e pointsas Inay be prescribed, "s; (d) wherefianExemptsupplyofgpods n; seryicesor . both by a gegstered peglpnhewmes a taxable . ,. nippjy,suchperson shall ‘entitled to takecredit ,,,,, ’ ‘ inputs contained'insemi-fimshedorfinishedgoods 'held'in stock relatable to such exempt supply and onespitaigendsexdusiveiyusedforsuchexemm ,supply onthe day immediately precedingthe date ' . . Ad , from whichsuchsnpglybedomestaxablez, Availabilityofcreditin spedalcixtumsm 36 ,, Provided that the ctetIit-bnW sunbe rednwd by , such percentage points as maybeptficflbed- , .(2)_ '(3) (4) A registered peison ‘shallnotbe entitledto at:w tax credit under sub-section (1)in respect ofayguiyofgoods orservicesorbothtohimaftertheexplryrmeyarfmmthe date ofissue oftax invoice relating to" " supply. Where there is a change in the constitution of a registered person on accouht of sale. merger, demerger, umlgmfltion, lease or transfer ofthe business with thespecificpnw'siom fix transfer ofliabilities, the said registered person shallbeallowed to transfer themput tax credit which mains unutilised in ‘ his electroniccredit ledger to such sold. merged, mud, amalgamated,- leased or transferred businessm sud: unmet as may be prescribed.- . Ii ‘Where any registeredpersonwhohas availedofinputtaxcredit optsto pay taxunder sectiOn10 of, Where thegoods orservices I 'orboth supplied by him becomeexempt absolutely, he slnll pay an amount, by way of debit iiithe electr'oiiic credit ledger or electmnic cash ledger, equivalentto the credit ofinput tax in respect ofinputs heldin stockand inputs containedin semi- finished or finished goods held in stock and on capital goods. reduced by such per cent points as may be prescribed, on .- the day immediately preceding the date if exercising ofsuch option or, as the case may be,-the date ofsuch exemption: Prefided that‘afte’r'payment ofsuch amount; the balance of inputtaxcredit, ifany, lyingmhis eleetmnic creditledger shalllapse. (5) The amount of credit undersub--se¢tion (1) and the amount (6) payable under sub-sectioh{4) shall be calculated in such manner as may be prescribed. ' In case of supply ofcapitalgoods orpIant and machmery, on which input tax credit hasbeen taken, the registered person shall pay an amount equal to the input tax credit taken on ' the said capital goodsorplant andmadnnery reduced by such percentage pomtsas maybefirescnbedor the tax on the : transaction valiieofsuch capitalgoods orplantandmachinery determined undersectiqnls whicheverIS higher. Pmded that whererefractoryxbmks,moulds and dies,)igs and fixturéi are supplied as scrap, the taxableperson may pay tax on the transaetion value ofsuéh goOdsdeterim'iiedunder sectionlS. l9. ('1) ; <22 _ credit oninputs sent to a job-worker for job-wonk. ? ‘37 ‘Ihe principal shallf subject 7 to V suehjcondmohs find restrictions as may be prescribé’ii, behiféwedinfilt tax ‘ ) NewsStandmganythngfita‘ifiédmdafigéfilfl" section (2) ofsection 16,thepmicgralshall beieiittified tn take credit of inputtax on‘ inputs iijif the inputs are '3 directly sent to a job Worker for onfLWéifk withbut‘being (3) _ first brought to his place ofbusiness. Where the ifiputssent’ for job Work are not received back by the Brincipa‘l after completion of‘job-wozk or 1 otherwise or are notsuppliegi from the place ofbusiness of"the job worker in accofdaiice with clause (a) or clause (b)of sqb-section (i) of section 14.3 within me year of being sent but, it shall be deemed that‘such innit; had been supplied by‘the principal to the job-worker on the 5-daywhen the saifl'inputswm sent out: ' 2 Provided that where the inputs are sefit'direcflyito a‘job ‘wOrker, theperio‘a ofone year shall beimmmd frbitiithe dhte of A receipt ofinputs byt’the job wbrkét». ' - J ' ’ (4)_ 5‘33: ‘ ' The principal shall, subject to such eohditions and 'iestrictions as may be prescribed, be alloyiEd input tax ‘if Credit on capital goods sent to ajobWorker forjob work. (5) .{fiétéiihmdmganyflmm‘”gmmin clause (b) ofsub- section (2) .of seqh'on 16, the principalshall be entitled to take credit of input tax on capital goods even if the Lcapital goods are directlyfiént to a job werker for ”job- . ; Work withoutbeingfirstbfbughftdhisplaée ofbusiness. (6);” Provided that where the capital goods are sent directly tga job worker, the period of'thxee years shall be counted from the 32m of ' Where the capital goods sent for' job work are not received bad: by the principal within a period ofthree years of being sent out!» it shall ,beideemedtthat such .ymcapital goods had beemsupplied by the principal to the _ job worker on the daywhen the said capital goods were sent out: j . _ ‘ receipt ofcapital goods by the job worker; (71“;. Nothlng tcpn‘tained- in.sub-section;l(3)g9£§§::h;:se¢:tion (6) shall apply to hxpuldsgandiciies,rjigs aiidfixtures, or tools sent out to ajob wbrkei' for job whirls~ Taking input tax credit in respect ofinputs sent for job work. 38 EsplanationejFor the purpose of this section, “principal” means the flyerson referfed to in section 143. '