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Y B NIUTTe & A W TIT SGUER IR @ @, IR Al MADHYA PRADESH BILL No. 29 OF 2024 THE MADHYA PRADESH GOODS AND SERVICES TAX (THIRD AMENDMENT) BILL, 2024 TABLE OF CONTENTS Clauses :
1. Short title and commencement.
25 Amendment of Section 9.
3. Amendment of Section 10.
4. Insertion of Section 11A.
5. Amendment of Section 13.
6. Amendment of Section 16.
7. Amendment of Section 17.
7 708 e Woigs, fid 20 R 2024 Amendment of Section 21.
9. Amendment of Section 30.
10. Amendment of Section 31.
11. Amendment of Section 35.
12. Amendment of Section 39.
13. Amendment of Section 49.
14. Amendment of Section 50.
15. Amendment of Section 51.
16. Amendment of Section 54.
17. Amendment of Section 61.
18. Amendment of Section 62.
19. Amendment of Section 63.
20. Amendment of Section 64.
21. Amendment of Section 65.
22. Amendment of Section 66.
23. Amendment of Section 70.
24. Amendment of Section 73.
25. Amendment of Section 74.
26. Insertion of Section 74A.
27. Amendment of Section 75.
28. Amendment of Section 104.
29. Amendment of Section 107.
30. Amendment of Section 112.
31. Amendment of Section 122.
32. Amendment of Section 127.
33. Insertion of Section 128A.
34. Amendment of Section 171.
35. Amendment of Schedule ITL.
36. No refund of paid tax and reversed input tax credit.
AR XToT9F, R 20 R 2024 708 (1) MADHYA PRADESH BILL NO. 29 OF 2024 THE MADHYA PRADESH GOODS AND SERVICES TAX (THIRD AMENDMENT) BILL, 2024 A Bill further to amend the Madhya Pradesh Goods and Services Tax Act, 2017.
Be it enacted by Madhya Pradesh Legislature in the seventy-fifth year of the Republic of India as follows :-
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(1) This Bill may be called the Madhya Pradesh Goods and Services Tax (Third Amendment)Act, 2024.
(2) Save as otherwise provided, the provisions of this Act shall come into force on 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.
In Section 9 of the Madhya Pradesh Goods and Services Tax Act, 2017 (No. 19 0f 2017) (hereinafter referred to as the principal Act), in subsection (1), after the words “alcoholic liquor for human consumption”, the words * and un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquar, for human consumption” shall be inserted.
In Section 10 of the principal Act, in sub-section (5),after the words and figures “Section 73 or Section 747, the words, figures and letter “or Section 74A” shall be inserted.
After Section 11 of the principal Act, the following Section shall be inserted, namely:- “]1A. Notwithstanding anything contained in this Act, if the Government is satisfied that-
(a) apractice was, or is, generally prevalent regarding levy of State tax (including non-levy thereof) on any supply of goods or services or both; and Short title and commencement.
Amendment of Section 9.
Amendment of Section 10.
Insertion of Section 11A.
Power not to recover Goods and Service Tax not levied or short-levied as a result of general practice.
708 (2) AR XToT0, 37 20 fAEwR 2024
(b) such supplies were, or are, liable to,-
(i) Statetax, in cases where according to the said practice, State tax was not, or is not being, levied, or
(i) ahigher amount of State tax than what was or is being, levied, in accordance with the said practice, the Government may, on the recommendation of the Council, by notification in the Official Gazette, direct that the whole of the State tax payable on such supplies, or, as the case may be, the State tax in excess of that payable on such supplies, but for the said practice, shall not be required to be paid in respect of the supplies on which the State tax was not, or is not being levied, or was, or is being, short-levied, in accordance with the said practice.”.
Amendment of 5. InSection 13 of the principal Act, in sub-section (3),- Section 13.
(i) inclause (b), for the words “by the supplier:”,“the words “by the supplier, in cases where invoice is required to be issued by the supplier; or” shall be substituted;
(ii) after clause (b), the following clause shall be inserted, namely:- “(c) the date of issue of invoice by the recipient, in cases where invoice is to be issued by the“recipient:”;
(iii) in the first proviso, after the words, brackets and letter “or clause
(b)”, the words, brackets and letters “or clause (c)” shall be inserted.
Amendment of 6. In Section 16 of the principal Act, with effect from the 1st day of July, Section 16. 2017, after sub-section (4), the following sub-sections shall be inserted, namely:-
(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18,2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under Section 39 which is filed up to the thirtieth day of November, 2021.
HEAWEY XToF, fara 20 fawar 2024 708 (3)
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(6). Where registration of a registered person is cancelled under Section 29 and subsequently the cancellation of registration is revoked by any order, either under Section 30 or pursuant to any order made by the Appellate Authority or the Appellate Tribunal or court and where availment of input tax credit in respect of an invoice or debit note was not restricted under sub-section (4) on the date of order of cancellation of registration. the said person shall be entitled to take the input tax credit in respect of such invoice or debit note for supply of goods or services or both, in a return under Section 39,-
(i) filed up to thirtieth day of November following the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier; or
(ii) for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, where such return is filed within thirty days from the date of order of revocation of cancellation of registration, whichever is later.”.
In Section 17 of the Principal Act, in sub-section (5), in clause (i), for the words and figures “Sections 74, 129 and 130", the words and figures “ Section 74 in respect of any period up to Financial Year 2023-24” shall be substituted.
In Section 21 of the Principal Act, after the words and figures “Section 73 or Section 747, the words, figures and letter “or Section74A” shall be inserted.
In Section 30 of the Principal Act, in sub-section (2), after the proviso, for the full stop, colon shall be substituted and thereafter the following proviso shall be inserted, namely:- « Provided further that . such revocation of cancellation of registration shall be subject to such conditions and restrictions, as may be prescribed.”.
In Section 31 of the Principal Act, in sub-section (3) - (@) inclause (f), after the words and figure “of Section 9 shall”, the words , within the period as may be prescribed,” shall be inserted;
Amendment of Section 17.
Amendment of Section 21.
Amendment of Section 30.
Amendment of Section 31.
708 (4) weAyee rorus, e 20 fRuwR 2024 Amendment of Section 35.
Amendment of Section 39.
Amendment of Section 49.
Amendment of Section 50.
Amendment of Section 51.
Amendment of Section 54.
(b) after clause (g), the following Explanation shall be inserted, namely:- “Explanation.- For the purposes of clause (f), the expression “supplier who is not registered” shall include the supplier who is registered solely for the purpose of deduction of tax under Section 51.”.
11. In Section 35 of the Principal Act, in sub-section (6), after the words and figures “Section 73 or Section74”, the words, figures and leter “or Section 74A” shall be inserted.
12. InSection 39 of the Principal Act, for sub-section (3), the following subsection shall be substituted, namely:— “(3) Every registered person required to deduct tax at source under Section 51 shall electronically furnish a return for every calendar month of the deductions made during the month in such form and manner and within such time as may be prescribed:
Provided that the said registered person shall furnish a return for every calendar month whether or not any deductions have been made during the said month.”.
13. In Section 49 of the Principal Act, in sub-section (8), in clause (c), after the words and figures “Section 73 or Section 74”, the words, figures and letter “or Section 74A” shall be inserted.
14. In Section 50 of the Principal Act, in sub-section (1), in the proviso, after the words and figures “Section 73 or Section 74”, the words, figures and letter “or Section 74A” shall be inserted.
15. In Section 51 of the Principal Act, in sub-section (7), after the words and figures “Section 73 or Section 74”, the words, figures and letter “or Section 74A” shall be inserted.
16. In Section 54 of the Principal Act,-
(a) insub-section (3), the second proviso shall be omitted;
(b) after sub-section (14) and before the Explanation, the following sub-section shall be inserted, namely:- v weiaE, Al 20 fawwR 2024 708 (5) ¢(15) Notwithstanding anything contained in this Section, no refund of unutilised input tax credit on account of zero rated supply of goods or of integrated tax paid on account of zero rated supply of goods shall be allowed where such zero rated supply of goods is subjected to export duty.”.
17. In Section 61 of the Principal Act, in sub-section (3), after the words and ~ Amendment of figures “Section 73 or Section 747, the words, figures and letter “or Section 61.
Section 74A” shall be inserted.
18. In Section 62 of the Principal Act, in sub-section (1), after the words and ~ Amendmentof figures “Section 73 or Section 74”, the words, figures and letter “or Section 62.
Section 74A” shall be inserted.
19. In Section 63 of the Principal Act, after the words and figures “Section 73 Amendmentof or Section 74”, the words, figures and letter “or Section 74A” shall Scetion 3 be inserted.
20. In Section 64 of the Principal Act, in sub-section (2), after the words and A;mf]}ld";?tof figures “Section 73 or Section 74”, the words, figures and letter “or SFEDRCE Section 74A” shall be inserted.
21. InSection 65 of the Principal Act, in sub-section (7), after the words and SAMGH:SNM tion 65.
figures “Section 73 or“Section 74”, the words, figures and letter ‘or eetion Section 74A” shall be inserted.
22. In Section 66 of the Principal Act, in sub-section (6), after the words and ~ Amendment of figures “Section 73 or Section 74”, the words, figures and letter ““or Seetion 66 Section 74A” shall be inserted.
23. In section 70 of the Principal Act, after sub-section Amendment of Section 70.
(1), the following sub-section shall be inserted, namely:- “(1A) All persons summoned under sub-section (1) shall be bound to attend, either in person or by an authorised representative, as such officer may direct,and the person so appearing shall state the truth during examination or make statements or produce such documents and other things as may be required.”.
708 (6) eyl ¥, AT 20 fRER 2024 Amendment of Section 73.
Amendment of Section 74.
Insertion of Section 74A.
Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason pertaining to Financial year 2024-25 onward.
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In Section 73 of the Principal Act,—
(i) inthe marginal heading, after the words “Determination of tax”, the words and figures®, pertaining to the period up to Financial Year 2023-24,” shall be inserted;
(ii) after sub-section (11), the following sub-section shall be inserted, namely:— “(12) The provisions of this Section shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24.”.
In Section 74 of the Principal Act,—
(i) inthe marginal heading, after the words “Determination of tax ”, the words and figures®, pertaining to the period up to Financial Year 2023-24,” shall be inserted;
(i) after sub-section (11), the following sub-section shall be inserted, namely— “(12) The provisions of this Section shall be applicable for determination of tax pertaining to the period up to Financial Year 2023-24.”.
(iii) the Explanation 2 shall be omitted.
After Section 74 of the Principal Act, the following Section shall be in serted, namely:— “74A, (1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under Section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder:
AR JToTd, s 20 fRRIRR 2024 708 (7)
Provided that no notice shall be issued, if the tax which has notbeen paid or short paid or crroneously refunded or where input tax credit has been wrongly availed or utilised in a financial year is less than one thousand rupees.
(2) The proper officer shall issue the notice under sub-section (1) within forty-two months from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within forty-two months from the date of erroneous refund.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub- Section (1), on the person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under stib-section (1) are the same as are mentioned in the earlier notice.
(5) The penalty in case where any tax which has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised,—
(i) for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, shall be equivalent to ten percent of tax due from such person or ten thousand rupees, whichever is higher;
(ii) for the reason of fraud or any wilful-misstatement or suppression of facts to evade tax shall he equivalent to the tax due from such person.
(6) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of taxinterest and penalty due from such person and issue an order.
708 (8) ey Wi, Rid 20 R 2024
(7) The proper officer shall issue the order under sub-section (6) within twelve months from the date of issuance of notice specified in sub-section (2):
Provided that where the proper officer is not able to issue the order within the specified period, the Commissioner, or an officer authorised by the Commissioner senior in rank to the proper officer but not below the rank of Joint Commissioner of State Tax, may, having regard to the reasons for delay in issuance of the order under sub-section (6), to be recorded in writing, before the expiry of the specified period, cxtend the said period further by a maximum of six months.
(8) The person chargeable with tax where any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax,may,— @
(i) before service of notice under sub-section (1), pay the amount of tax along with interest payable under section 50 of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment, and the proper officer,on receipt of such information shall not serve any notice under sub-section (1) or the statement under sub-section (3), as the case may be, in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder;
pay the said tax along with interest payable under Section 50 within sixty days of issue of show cause notice, and on doing so, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.
(9) The person chargeable with tax, where any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax,may- YRR 79, fa1a 20 faw=R 2024 708 (9)
(i) - before service of notice under sub-section (1), pay the amount of -
(i) tax along with interest payable under Section 50 and a penalty equivalent to fifteen percent of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment, and the proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid orany penalty payable under the provisions of this Act or the rules made thereunder;
pay the said tax along with interest payable under Section 50 and a penalty equivalent to twenty-five percent of such tax within sixty days of issue of the notice, and on doing so, all proceedings in respect of the said notice shail be deemed to be concluded;
(iii) pay the tax along with interest payable thereon under Section 50 and a penalty equivalent to fifty percent of such tax within sixty days of communication of the order, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded.
(10) Where the proper officer is of the opinion that the amount paid under clause (i) of sub-section (8) or clause (i) of sub-section (9) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable.
(11) Notwithstanding anything contained in clause (i) or clause (ii) of sub section (8), penalty under clause (i) of sub-section (5) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.
(12) The provisions of this Section shall be applicable for determination of tax pertaining to the Financial Year 2024-25 onwards.
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Explanation 1.—For the purposes of this Section,— the expression “all proceedings in respect of the said notice” shall not include proceedings under Section 132;
708 (10) Ty WS, faid 20 R 2024 Amendment of Section 75.
(ii) where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under this Section, the proceedings against all the persons liable to pay penalty under Sections 122 and 125 are deemed to be concluded.
Explanation 2.—For the purposes of this Act, the expression “suppression” shall mean non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer.
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(@ (®) © @ In Section 75 of the Principal Act,— in sub-section (1), after the words, brackets and figures “sub-sections (2) and (10) of Section 74, the words, brackets, figures and letter “or subsections (2) and (7) of Section 74A” shall be inserted;
after sub-section (2), the following sub-section shall be inserted, namely:- “(2A) Where any Appellate Authority or Appellate Tribunal or court concludes that the penalty under clause (ii) of sub-section (5) of Section 74A is not sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the penalty shall be payable by such person, under clause (i) of sub-section
(5) of section 74A.”;
for sub-section (10), the following sub-section shall be substituted, namely:— “(10) The adjudication proceedings shall be deemed to be concluded, if the order is not issued within the period specified in sub-section (10) of Section 73 or in sub-section (10) of Section 74 or in sub-section
(7) of Section 74A.”;
in sub-section (11), after the words, bracket and figures “sub- section
(10)of Section 74”, the words, brackets, figures and letter “or sub-section (7) of Section 74A” shall be inserted;
e ¥rorE, Rl 20 faA=R 2024 708 (11)
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©) ® in sub-section. (12), after the words and figures “Section 73 or Section 74”, the words, figures and letter “or Section 74A” shall be inserted;
in sub-section (13), after the words and figures “Section 73 or Section 74”, the words, figures and letter “or Section 74A” shall be inserted.
In Section 104 of the Principal Act, in sub-section (1), in the Explantion, after the words, brackets and figures “sub-section (2) and (10) of Section 74”, the words, brackets, figures and letter “or sub-sections (2) and (7) of Section 74A” shall be inserted.
Insection 107 of the Principal Act,- @ (®) in sub-section (6), in clause (b), for the word “twenty-five”, the word “twenty” shall be substituted;
in sub-section (11), in the second proviso, after the words and figures Section 73 or Section“74”, the words, figures and letter “or Section 74A” shall be inserted In section 112 of the Principal Act,— @ (®) with effect from the 1st day of August, 2024, in sub-section (1), after the words “from the date on which the order sought to be appealed against is communicated to the person preferring the appeal”, the words * or the date, as may be notified by the Government, on the recommendations of the Council, for filing appeal before the Appellate Tribunal under this Act, whichever is later.”shall be inserted;
with effect from the 1st day of August, 2024, in sub-section (3), after the words “from the date on which the said order has been passed”, the words“or the date, as may be notified by the Government, on the recommendations of the Council, for the purpose of filing application before the Appellate Tribunal under this Act, whichever is later,” shall be inserted;
Amendment of Section 104.
Amendment of Section 107.
Amendment of Section 112.
708 (12) ey <o, AT 20 favR 2024 Amendment of Section 122.
Amendment of Section 127.
Insertion of Section
128A.
‘Waiver of interest or penalty or both relating to demands raised under Section 73, for certain tax periods.
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(c) insub-section (6), after the words, brackets and figure “after the expiry of the period referred to in sub-section (1)”, the words, brackets and figure “or permit the filing of an application within three months after the expiry of the period referred to in sub-section
(3)” shall be inserted;
(d) in sub-section (8), in clause (b),—
(i) forthe words “twenty percent”, the words“ten percent” shall be substituted;
(ii) for the words “fifty crore rupees”, the words “twenty crore rupees” shall be substituted.
Insection 122 of the Principal Act, with effect from the 1st day of October, 2023, in sub section (1B), for the words “Any electronic commerce operator, who is liable to collect tax at source under Section 52,” shall be substituted.
In section 127 of the Principal Act, after the words and figures “Section 73 or Section 74”, the words, figures and letter “or Section 74A” shall be inserted.
After section 128 of the Principal Act, the following Section shall be inserted, namely:— “128A. (1) Notwithstanding anything to the contrary contained in this Act, where any amount of tax is payable by a person chargeable with tax in accordance with ,—
(a) anotice issued under sub-section (1) of Section 73 or a statement issued under sub-section (3) of Section 73, and where no order under sub- section (9) of Section 73 has been issued; or
(b) anorder passed under sub-section (9) of Section 73, and where no order under sub-section (11) of Section 107 or sub-section (1) of Section 108 has been passed; or (¢) an order passed under sub-section (11) of Section 107 or sub-section (1) of Section 108, and where no order under sub-section (1) of Section 113 has been passed, A XoTes, i 20 fRTwaR 2024 708 (13) pertaining to the period from ist July, 2017 to31st March, 2020,0r apart thereof, and the said person pays the full amount of tax payable as per the notice or statement or the order referred to in clause (a), clause (b) or clausc (c), as the case may be, on or before the date, as may be notified by the Government on the recommendations of the Council, no interest under section 50 and penalty under this Act, shall be payable and all the proceedings in respect of the said notice or order or statement, as the case may be, shall be deemed to be concluded, subject to such conditions as may be prescribed:
Provided that where a notice has been issued under sub-section (1) of Section 74, and an order is passed or required to be passed by the proper officer in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court in accordance with the provisions of subsection (2) of Section 75, the said notice or order shall be considered to be a notice or order, as the case may be, referred to in clause (a) or clause (b)of this sub-section :
Provided further that the conclusion of the proceedings under this sub-section, in cases where an application is filed under sub-section
(3) of Section 107 or under sub-section (3) of Section 112 or an appeal is filed by an officer of State tax under sub-section (1) of Section 117 or under sub-section (1) of Section 118 or where any proceedings are initiated under sub-section (1) of Section 108, against an order referred to in clause (b) or clause (c) or against the directions of the Appellate Authority or the Appellate Tribunal or the court referred to in the first proviso, shall be subject to the condition that the said person pays the additional amount of tax payable, if any, in accordance with the order of the Appellate Authority or the Appellate Tribunal or the court or the Revisional Authority, as the case may be, within three months from the date of the said order:
Provided also that where such interest and penalty has already been paid, no refund of the same shall be available.
(2) Nothing contained in sub-section (1) shall be applicable in respect of any amount payable by the person on account of erroneous refund.
708 (14) TRyl WoTas, R 20 fRuwR 2024 Amendment of Section 171.
34.
(3) Nothing contained in sub-section (1) shall be applicable in respect of cases where an appeal or writ petition filed by the said person is pending before Appellate Authority or Appellate Tribunal or a court, as the case may be, and has not been withdrawn by the said person on or before the date notified under sub-section (1).
(4) Notwithstanding anything contained in this Act, where any amount specified under sub-section (1) has been paid and the proceedings are deemed to be concluded under the said sub-section, no appeal under sub- Section (1) of Section 107 or sub- section (1) of Section 112 shall lie against an order referred to in clause (b) or clause (c) of sub-section (1), as the case may be.”.
In Section 171 of the Principal Act,—
(a) in sub-section (2), for the full stop, colon shall substituted and there after the following proviso and Explanation shall be inserted, namely:
« Provided that the Government may by notification, on the recommendations of the Council, specify the date from which the said Authority shall not accept any request for examination as to whether input tax credits availed by anyregistered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
Explanation.—For the purposes of this sub-section, “request for examination” shall mean the written application filed by an applicant requesting for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.”;
the Explanation shall be renumbered as Explanation 1 thereof, and after
Explanation 1 as so renumbered, the following Explanation shall be inserted, namely:— “Explanation 2.—For the purposes of this Section, the expression “Authority” shall include the “Appellate Tribunal”.”.
e e, R 20 fawR 2024 708 (15)
35. In Schedule III to the Principal Act, after paragraph 8 and before Amendmentof
36.
Explanation 1, the following paragraphs shall be inserted, namely:—
9. Activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the insurance services jointly supplied by the lead insurer and the co-insurer to the insured in co- insurance agreements, subject to the condition that the lead insurer pays the Central tax, the State tax, the Union territory tax and the integrated tax on the entire amount of premium paid by the insured.
10. Services by insurer to the reinsurer for which ceding comumission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer, subject to the condition that the Central tax, the State tax, the Union territory tax and the integrated tax is paid by the reinsurer on the gross reinsurance premium payable by the insurer to the reinsurer, inclusive of the said ceding commission or the reinsurance commission.”.
No refund shall be made of all the tax paid or the input tax credit reversed, which would not have been so paid, or not reversed, had Section 6 of this Act been in force at all material times.
Schedule T Norefund of paid taxand reversed input tax credit 708 (16) Ty v, RS 20 AR 2024 STATEMENT OF OBJECTS AND REASONS Amendments have been made in the Madhya Pradesh Goods and“Service Tax Act, 2017 (No. 19 0f 2017) as follows -
1. "Clause 2 of the Bill seeks to amend sub-section (1) of Section 9 of the Madhya Pradesh Goods and Services Tax Act, so as to not to levy state tax on un-denatured extra neutral alcohol or rectified spirit used for manufacture of alcoholic liquor for human consumption.
2. Clause 3 of the Bill seeks to make consequential amendments in sub-section (5) of Section 10 of the Madhya Pradesh Goods and Services Tax Act, s0 as to incorporate a reference to the proposed new Section 74A.
3. Clause 4 of the Bill seeks to insert a new Section 11A in the Madhya Pradesh Goods and Services Tax Act, so as to empower the Government to regularise non-levy or short levy of state tax where it is satisfied that such non-levy or short levy was a result of general practice.
4. Clause 5 of the Bill seeks to amend sub-section (3) of Section 13 of the Madhya Pradesh Goods and Services Tax Act, so as to specify the time of supply of services in cases where the invoice is required to be issued by the recipient of services in reverse charge supplies.
S. Clause 6 of the Bill seeks to insert a new sub-section (5) in Section 16 of the Madhya Pradesh Goods and Services Tax Act, so as to carve out an exception to the existing subsection (4) and to provide that in respect of an invoice or debit note for the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under Section 39 which is filed upto the thirtieth day of November, 2021.
It also proposes to insert a new sub-section (6) in the said section so as to allow the availment of input tax credit in respect of an invoice or debit note in a return filed for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancellation of registration, filed within thirty days of the date of order of revocation of cancellation of registration, subject to the condition that the time-limit. for availment of credit in respect of the said invoice or debit note should not have already expired under sub-section (4) of the said Section on the date of order of cancellation of registrauion.
The aforesaid amendments are proposed to be made effective from the 1st day of July,
2017.
Further it is proposed that where the tax has been paid or the input tax credit has been reversed, no refund of the same shall be admissible.
Tegwer eI, e 20 AR 2024 708 (17)
6. Clause 7 of the Bill seeks to amend sub-section (5) of Section 17 of the Madhya Pradesh Goods and Services Tax Act, so as to restrict the non availability of input tax credit in respect of tax paid under section 74 of the said Act only for demands upto Financial Year 2023-24.
It also proposes to remove reference to Sections 129 and 130 in the said sub-section.
i Clause 8 of the Bill seeks to make consequential amendment in Section 21 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposcd new Section 74A.
8. Clause 9 of the Bill seeks to insert a new proviso in sub-section (2) of Section 30 of the Madhya Pradesh Goods and Services Tax Act, so as to empower the State Government to prescribe conditions and restrictions for revocation of cancellation of registration by rules.
9. Clause 10 of the Bill seeks to amend clause () of sub-section (3) of Section 31 of the Madhya Pradesh Goods and Services Tax Act, so as to empower the State Government t0 prescribe the time period for issuance of invoice by the recipient in case of reverse charge mechanism supplies by rules.
It also proposes to insert an Explanation in sub-section (3) of the said section so as to specify that a supplier registered solely for the purposes of tax deduction at source under Section 51 of the said Act shall not be considered as a registered person for the purpose of clause (f) of sub-section (3) of Section 31 of the said Act.
10. Clause 11 of the Bill sceks to make consequential amendment in sub- section (6) of Section 35 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate areference to the proposed new section 74A.
11. Clause 12 of the Bill seeks to substitute sub-section (3) of Section 39 of the Madhya Pradesh Goods and Services Tax Act, so as to mandate the electronic furnishing of return for each month by the registered person required to deduct tax at source, irrespective of whether any deduction has been made in the said month or not.
It also empowers the Government to prescribe by rules, the form, manner and the time within which such return shall be filed.
12. Clause 13 of the Bill seeks to make consequential amendments in sub-section (8) of Section 49 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposed new section 74A.
13. Clause 14 of the Bill secks to make consequential amendments in sub-section (1) of Section 50 in the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposed new section 74A.
708 (18) ey Jwiua, fiie 20 fawmR 2024
14. Clause 15 of the Bill seeks to make consequential amendments in sub-section (7) of Section 51 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposed new Section 74A.
15. Clause 16 of the Bill seeks to insert a new sub-section (15) in Section 54 of the Madhya Pradesh Goods and Services Tax Act, so as to omit the second proviso to sub-section
(3) and to provide that no refund of unutilised input tax credit or of integrated tax shall be allowed in cases of zero rated supply of goods where such goods are subjected to export duty.
16. Clause 17 of the Bill seeks to make consequential amendments in sub-section (3) of Section 61 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposed new section 74A.
17. Clause 18 of the Bill seeks to make consequential amendments in sub-section (1) of Section 62 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a refcrence to the proposed new Section 74A.
18. Clause 19 of the Bill seeks to make conscquential amendments in Section 63 of the Madhya Pradesh Goods and Services Tax, Act, s0 as to incorporate & reference to the proposed new section 74A.
19. Clause 20 of the Bill seeks to make consequential amendments in sub-section (2) of Section 64 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposed new section 74A.
20. Clause 21 of the Bill seeks to make consequential amendments in sub-section (7) of Section 65 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate areference to the proposed new Section 74A.
21l.. Clause 22 of the Bill seeks to make consequential amendments in sub-section (6) of Section 66 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposed new Section 74A.
22. Clause 23 of the Bill seeks to insert a new sub-section (1A) in Section 70 of the Madhya Pradesh Goods and Services Tax Act, so as to enable an authorised representative to appear on behalf of the summoned person before the proper officer in compliance of summons issued by the said officer.
23. Clause 24 of the Bill seeks to insert a new sub-scction (12) in Section 73 of the Madhya Pradesh Goods and Services Tax Act, so as to restrict the applicability of the said Section for determination of tax pertaining to the period upto Financial Year 2023-24.
ey T, R 20 R 2024 708 (19) Italso proposes to amend the marginal heading of the said Section accordingly.
24. Clause 25 of the Bill seeks to insert a new sub-section (12) in Section 74 of the Madhya Pradesh Goods and Services Tax Act, so as to restrict the applicability of the said section for determination of tax pértaining to the period upto Financial Year 2023-24.
It also proposes to amend the marginal heading of the said Section accordingly, 255 Clause 26 of the Bill seeks to insert a new Section 74A in the Madhya Pradesh Goods and Services Tax Act, so as to provide for determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to the Financial Year 2024-25 onwards.
It also provides for the same limitation period for issuing demand notices and orders in respect of demands from the Financial Year 2024-25 onwards, irrespective of whether the charges of fraud, wilful misstatement, or suppression of facts are invoked or not, while keeping a higher penalty, for cases involving fraud, wilful misstatement, or suppression of facts.
26. Clause 27 of the Bill seeks to insert a new sub-section (2A) in Section 75 of the Madhya Pradesh Goods and Services Tax Act, 50 as to provide for redetermination of’ penalty demanded in a notice invoking penal provisions under clause (ii) of sub-section (5) of the proposed Section 74A of the said Act to re-determine the penalty as per clause (i) of the subsection (5) of the said Section, in cases where the charges of fraud, wilful misstatement, or suppression of facts are not established.
1t also seeks to make consequential amendments in Section 75 of the said Act, so as to incorporate a reference to the proposed Section 74A or the relevant sub-sections thereof.
27. Clause 28 of the Bill seeks to make consequential amendments in sub-section (1) of Section 104 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to sub-sections (2) and (7) of the proposed new section 74A.
28. Clause 29 of the Bill seeks to amend sub-section (6) of Section 107 of the Madhya Pradesh Goods and Services Tax Act, so as to reduce the maximum amount of predeposit for filing appeal before the Appellate Authority from rupees twenty-five crores to rupees twenty crores in state tax.
It also proposes to make consequential amendments in sub-section (11) of the said Section to incorporate a reference to the proposed new Section 74A.
708 (20) ey <rorgE, e 20 faRR 2024
29. Clause 30 of the Bill secks to amend sub-sections (1) and (3) of Section 112 of the Madhya Pradesh Goods and Services Tax Act, so as to empower the Government to notify the date for filing appeal before the Appellate Tribunal and provide a revised time limit for filing appeals or application before the Appellate Tribunal.
It is proposed to make the said amendments effective from the Ist day*“August, 2024.
It also seeks to amend sub-section (6) of the said Section so as to enable the Appellate Tribunal to admit appeals filed by the department within three months after the expiry of the specified time limit of six“months.
Further, it seeks to amend sub-section (8) of the said Section to reduce the maximum amount of pre-deposit for filing appeals before the Appellate Tribunal from the existing twenty percent to ten percent of the tax in dispute and also reduce the maximum amount payable as pre-deposit from rupees fifty crores to rupees twenty crores in state tax.
30. Clause 31 of the Bill seeks to amend sub-section (1B) of Section 122 of the Madhya Pradesh Goods and Services Tax Act, s0 as to restrict the applicability of the said subsection to electronic commerce operators, who are required to collect tax at source under Section 52 of the said Act.
The said amendment is proposed to be made effective from the 1st day of October, 2023 when the said sub-section had come into force.
3 Clause 32 of the Bill seeks to make consequential amendments in Section 127 of the Madhya Pradesh Goods and Services Tax Act, so as to incorporate a reference to the proposed new section 74A.
32. Clause 33 of the Bill seeks to insert a new Section 128A in the Madhya Pradesh Goods and Services Tax Act, so as to provide for conditional waiver of interest and penalty in respect of demand notices issued under Section 73 of the said Act for the Financial Years 2017-18,2018-19 and 2019-20, except the demand notices in respect of erroneous refund.
Further, it is proposed that in cases where interest and penalty have already been paidin respect of any demand for the said financial years, no refund shall be admissible for the same.
33. Clause 34 of the Bill secks to amend sub-section (2) of Section 171 of the Madhya Pradesh Goods and Services Tax Act, s0 as to empower the Government to notify the date from which the Authority under the said Section shall not accept any application for anti-profiteering cases.
TR wreTa, faid 20 faTER 2024 708 (21) An Explanation is-also proposed to be- inserted so as-to include the reference of “Appellate Tribunal” in the expression “Authority” under the said section.
34. Clause 35 of the Bill seeks to amend Schedule III to the Madhya Pradesh Goods and Services Tax Act, so as to provide that the activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the insurance services jointly supplied by the lead insurer and the co-insurer to the insured in coinsurance agreements shall be treated as neither supply of goods nor supply of services, provided that the lead insurer pays the tax liability on the entire amount of premium paid by the insured.
It also proposes to provide that the services by the insurer to the re-insure, for which the ceding commission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer, shall be treated as neither supply of goods nor supply of services, provided that tax liability on the gross reinsurance premium inclusive of reinsurance commission or the ceding commission is paid by the reinsurer.
35. Clause 36 of the Bill seeks to provide that no refund shall be made of all the tax paid or the input tax credit reversed, which would not have been so paid, or not reversed had the said Section 6 been in force at all material times.
36. Hence this Bill BHOPAL: JAGDISH DEVDA DATED, THE 16" DECEMBER 2024 Member-in-Charge.
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