PAYMENT OF TAX
49. Payment of tax, interest, penalty and other amounts
(1) Every deposit made towards tax, interest, penalty, fee or any
other amount by a person by internet banking or by using credit or debit
cards or National Electronic Fund Transfer or Real Time Gross Settlement
or by such other mode and subject to such conditions and restrictions as may
be prescribed, shall be credited to the electronic cash ledger of such person
to be maintained in such manner as may be prescribed.
(2) The input tax credit as self-assessed in the return of a registered
person shall be credited to his electronic credit ledger, in accordance with
section 41, to be maintained in such manner as may be prescribed.
(3) The amount available in the electronic cash ledger may be used for
making any payment towards tax, interest, penalty, fees or any other amount
payable under the provisions of this Act or the rules made thereunder in
such manner and subject to such conditions and within such time as may be
prescribed.
(4) The amount available in the electronic credit ledger may be used for
making any payment towards output tax under this Act or under the
Integrated Goods and Services Tax Act in such manner and subject to such
conditions and within such time as may be prescribed.
(5) The amount of input tax credit available in the electronic credit ledger
of the registered person on account of ––
(a) integrated tax shall first be utilised towards payment of
integrated tax and the amount remaining, if any, may be utilised towards
the payment of central tax and State tax, or as the case may be, Union
territory tax, in that order ;
(b) the central tax shall first be utilised towards payment of central
tax and the amount remaining, if any, may be utilised towards the
payment of integrated tax ;
(c) the State tax shall first be utilised towards payment of State tax
and the amount remaining, if any, may be utilised towards the payment
of integrated tax ;
(d) the Union territory tax shall first be utilised towards payment
of Union territory tax and the amount remaining, if any, may be utilised
towards the payment of integrated tax ;
(e) the central tax shall not be utilised towards payment of State
tax or Union territory tax ; and
(f) the State tax or Union territory tax shall not be utilised towards
payment of central tax.
(6) The balance in the electronic cash ledger or electronic credit ledger
after payment of tax, interest, penalty, fee or any other amount payable under
this Act or the rules made thereunder may be refunded in accordance with
the provisions of section 54.
(7) All liabilities of a taxable person under this Act shall be recorded
and maintained in an electronic liability register in such manner as may be
prescribed.
(8) Every taxable person shall discharge his tax and other dues under
this Act or the rules made thereunder in the following order, namely :––
(a) self-assessed tax, and other dues related to returns of previous
tax periods ;
(b) self-assessed tax, and other dues related to the return of the
current tax period ;
(c) any other amount payable under this Act or the rules made
thereunder including the demand determined under section 73 or
section 74.
(9) Every person who has paid the tax on goods or services or both under
this Act shall, unless the contrary is proved by him, be deemed to have passed
on the full incidence of such tax to the recipient of such goods or services or
both.
Explanation.––For the purposes of this section,
(a) the date of credit to the account of the Government in the
authorised bank shall be deemed to be the date of deposit in the
electronic cash ledger ;
(b) the expression,—
(i) “tax dues” means the tax payable under this Act and does
not include interest, fee and penalty ; and
(ii) “other dues” means interest, penalty, fee or any other amount
payable under this Act or the rules made thereunder.
50. Interest on d e l a y e d payment of tax.
(1) Every person who is liable to pay tax in accordance with the
provisions of this Act or the rules made thereunder, but fails to pay the tax
or any part thereof to the Government within the period prescribed, shall
for the period for which the tax or any part thereof remains unpaid, pay, on
his own, interest at such rate, not exceeding eighteen per cent., as may be
notified by the Government on the recommendations of the Council.
(2) The interest under sub-section (1) shall be calculated, in such manner
as may be prescribed, from the day succeeding the day on which such tax was
due to be paid.
(3) A taxable person who makes an undue or excess claim of input tax
credit under sub-section (10) of section 42 or undue or excess reduction in
output tax liability under sub-section (10) of section 43, shall pay interest on
such undue or excess claim or on such undue or excess reduction, as the case
may be, at such rate not exceeding twenty-four per cent., as may be notified
by the Government on the recommendations of the Council.
51. Tax deduction at source.
(1) Notwithstanding anything to the contrary contained in this Act,
the Government may mandate,—
(a) a department or establishment of the Central Government or
State Government ; or
(b) local authority ; or
(c) Governmental agencies ; or
(d) such persons or category of persons as may be notified by the
Government on the recommendations of the Council,
(hereafter in this section referred to as “the deductor”), to deduct tax at the
rate of one per cent. from the payment made or credited to the supplier
(hereafter in this section referred to as “the deductee”) of taxable goods or
services or both, where the total value of such supply, under a contract,
exceeds two lakh and fifty thousand rupees :
Provided that no deduction shall be made if the location of the supplier
and the place of supply is in a State or Union territory which is different
from the State or, as the case may be, Union territory of registration of the
recipient.
Explanation.––For the purpose of deduction of tax specified above, the
value of supply shall be taken as the amount excluding the central tax, State
tax, integrated tax and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the
Government by the deductor within ten days after the end of the month in
which such deduction is made, in such manner as may be prescribed.
(3) The deductor shall furnish to the deductee a certificate mentioning
therein the contract value, rate of deduction, amount deducted, amount paid
to the Government and such other particulars in such manner as may be
prescribed.
(4) If any deductor fails to furnish to the deductee the certificate, after
deducting the tax at source, within five days of crediting the amount so
deducted to the Government, the deductor shall pay, by way of a late fee, a
sum of one hundred rupees per day from the day after the expiry of such five
day period until the failure is rectified, subject to a maximum amount of five
thousand rupees.
(5) The deductee shall claim credit, in his electronic cash ledger, of the
tax deducted and reflected in the return of the deductor furnished under
sub-section (3) of section 39, in such manner as may be prescribed.
(6) If any deductor fails to pay to the Government the amount deducted
as tax under sub-section (1), he shall pay interest in accordance with the
provisions of sub-section (1) of section 50, in addition to the amount of tax
deducted.
(7) The determination of the amount in default under this section shall
be made in the manner specified in section 73 or section 74.
(8) The refund to the deductor or the deductee arising on account of
excess or erroneous deduction shall be dealt with in accordance with the
provisions of section 54 :
Provided that no refund to the deductor shall be granted, if the amount
deducted has been credited to the electronic cash ledger of the deductee.
52. Collection of tax at source
(1) Notwithstanding anything to the contrary contained in this Act,
every electronic commerce operator (hereafter in this section referred to as
the “operator”), not being an agent, shall collect an amount calculated at
such rate not exceeding one per cent., as may be notified by the Government
on the recommendations of the Council, of the net value of taxable supplies
made through it by other suppliers where the consideration with respect to
such supplies is to be collected by the operator.
Explanation.––For the purposes of this sub-section, the expression “net
value of taxable supplies” shall mean the aggregate value of taxable supplies
of goods or services or both, other than services notified under sub-section
(5) of section 9, made during any month by all registered persons through the
operator reduced by the aggregate value of taxable supplies returned to the
suppliers during the said month.
(2) The power to collect the amount specified in sub-section (1) shall be
without prejudice to any other mode of recovery from the operator.
(3) The amount collected under sub-section (1) shall be paid to the
Government by the operator within ten days after the end of the month in
which such collection is made, in such manner as may be prescribed.
(4) Every operator who collects the amount specified in sub-section (1)
shall furnish a statement, electronically, containing the details of outward
supplies of goods or services or both effected through it, including the supplies
of goods or services or both returned through it, and the amount collected
under sub-section (1) during a month, in such form and manner as may be
prescribed, within ten days after the end of such month.
(5) Every operator who collects the amount specified in sub-section (1)
shall furnish an annual statement, electronically, containing the details of
outward supplies of goods or services or both effected through it, including
the supplies of goods or services or both returned through it, and the amount
collected under the said sub-section during the financial year, in such form
and manner as may be prescribed, before the thirty first day of December
following the end of such financial year.
(6) If any operator after furnishing a statement under sub-section (4)
discovers any omission or incorrect particulars therein, other than as a result
of scrutiny, audit, inspection or enforcement activity by the tax authorities,
he shall rectify such omission or incorrect particulars in the statement to be
furnished for the month during which such omission or incorrect particulars
are noticed, subject to payment of interest, as specified in sub-section (1) of
section 50 :
Provided that no such rectification of any omission or incorrect
particulars shall be allowed after the due date for furnishing of statement
for the month of September following the end of the financial year or the
actual date of furnishing of the relevant annual statement, whichever is
earlier.
(7) The supplier who has supplied the goods or services or both through
the operator shall claim credit, in his electronic cash ledger, of the amount
collected and reflected in the statement of the operator furnished under subsection (4), in such manner as may be prescribed.
(8) The details of supplies furnished by every operator under sub-section
(4) shall be matched with the corresponding details of outward supplies
furnished by the concerned supplier registered under this Act in such manner
and within such time as may be prescribed.
(9) Where the details of outward supplies furnished by the operator
under sub-section (4) do not match with the corresponding details furnished
by the supplier under section 37, the discrepancy shall be communicated to
both persons in such manner and within such time as may be prescribed.
(10) The amount in respect of which any discrepancy is communicated
under sub-section (9) and which is not rectified by the supplier in his valid
return or the operator in his statement for the month in which discrepancy
is communicated, shall be added to the output tax liability of the said supplier,
where the value of outward supplies furnished by the operator is more than
the value of outward supplies furnished by the supplier, in his return for the
month succeeding the month in which the discrepancy is communicated in
such manner as may be prescribed.
(11) The concerned supplier, in whose output tax liability any amount
has been added under sub-section (10), shall pay the tax payable in respect of
such supply along with interest, at the rate specified under sub-section (1) of
section 50 on the amount so added from the date such tax was due till the
date of its payment.
(12) Any authority not below the rank of Deputy Commissioner may
serve a notice, either before or during the course of any proceedings under
this Act, requiring the operator to furnish such details relating to—
(a) supplies of goods or services or both effected through such
operator during any period ; or
(b) stock of goods held by the suppliers making supplies through
such operator in the godowns or warehouses, by whatever name called,
managed by such operator and declared as additional places of business
by such suppliers,
as may be specified in the notice.
(13) Every operator on whom a notice has been served under sub-section
(12) shall furnish the required information within fifteen working days of
the date of service of such notice.
(14) Any person who fails to furnish the information required by the
notice served under sub-section (12) shall, without prejudice to any action
that may be taken under section 122, be liable to a penalty which may extend
to twenty-five thousand rupees.
Explanation.—For the purposes of this section, the expression
“concerned supplier” shall mean the supplier of goods or services or both
making supplies through the operator.
53. Transfer of input tax credit
On utilisation of input tax credit availed under this Act for payment
of tax dues under the Integrated Goods and Services Tax Act in accordance
with the provisions of sub-section (5) of section 49, as reflected in the valid
return furnished under sub-section (1) of section 39, the amount collected as
State tax shall stand reduced by an amount equal to such credit so utilised
and the State Government shall transfer an amount equal to the amount so
reduced from the State tax account to the integrated tax account in such
manner and within such time as may be prescribed.
