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HARYANA GOVT. GAZ. (EXTRA.), MAY 4 2017 (VYSK. 13, 1939 SAKA) 

1203 

Regd. No. CHD/0093/2015–2017 

Haryana Government Gazette 

EXTRAORDINARY 

Published by Authority 

© Govt. of Haryana 

No. 76-2017/Ext.] CHANDIGARH, THURSDAY, MAY 4, 2017 (VAISAKHA 13, 1939 SAKA) 

HARYANA VIDHAN SABHA SECRETARIAT 

Notification 

The 4th May, 2017 

No. 23-HLA of 2017.— The Haryana Goods and Services Tax Bill, 2017, is  hereby published for general information under proviso to Rule 128 of the Rules of  Procedure and Conduct of Business in the Haryana Legislative Assembly:– Bill No. 23- HLA of 2017 

THE HARYANA GOODS AND SERVICES TAX BILL, 2017 

BILL 

to make a provision for levy and collection of tax on intra-State supply of  goods or services or both by the State of Haryana and for matters connected  therewith or incidental thereto. 

Be it enacted by the Legislature of the State of Haryana in the Sixty-eighth  Year of the Republic of India as follows :- 

CHAPTER I 

PRELIMINARY 

  1. (1) This Act may be called the Haryana Goods and Services Tax  Act, 2017. 

(2) It extends to the whole of the State of Haryana. 

(3) It shall come into force on such date as the Government may, by  notification in the Official Gazette, appoint: 

(1203) 

Short title,  

extent and  

commencement.

1204 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

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. 

Definitions. 2. In this Act, unless the context otherwise requires,- (1) “actionable claim” shall have the same meaning as assigned  

to it in section 3 of the Transfer of Property Act, 1882  

(Central Act 4 of 1882); 

(2) “address of delivery” means the address of the recipient of  

goods or services or both indicated on the tax invoice issued by  

a registered person for delivery of such goods or services or  

both; 

(3) “address on record” means the address of the recipient as  

available in the records of the supplier; 

(4) “adjudicating authority” means any authority, appointed or  

authorized to pass any order or decision under this Act, but  

does not include the Commissioner, the Revisional Authority,  

the Authority for Advance Ruling, the Appellate Authority for  

Advance Ruling, the Appellate Authority and the Appellate  

Tribunal; 

(5) “agent” means a person, including a factor, broker, commission  

agent, arhatia, del credere agent, an auctioneer or any other  

mercantile agent, by whatever name called, who carries on the  

business of supply or receipt of goods or services or both on behalf  

of another; 

(6) “aggregate turnover” means the aggregate value of all taxable  

supplies (excluding the value of inward supplies on which tax is  

payable by a person on reverse charge basis), exempt supplies,  

exports of goods or services or both and inter-State supplies of  

persons having the same Permanent Account Number, to be  

computed on all India basis but excludes central tax, State tax,  

Union territory tax, integrated tax and cess;  

(7) “agriculturist” means an individual or a Hindu Undivided Family  

who undertakes cultivation of land- 

(a) by own labour; or 

(b) by the labour of family; or 

(c) by servants on wages payable in cash or kind or by hired  

labour under personal supervision or the personal  

supervision of any member of the family; 

(8) “Appellate Authority” means an authority appointed or  

authorized to hear appeals as referred to in section 107; 

(9) “Appellate Tribunal” means the Goods and Services Tax  

Appellate Tribunal referred to in section 109; 

(10) “appointed day” means the date on which the provisions of this  

Act shall come into force;

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1205 

(11) “assessment” means determination of tax liability under this Act  and includes self-assessment, re-assessment, provisional  

assessment, summary assessment and best judgement assessment; 

(12) “associated enterprises” shall have the same meaning  as assigned to it in section 92A of the Income Tax Act, 1961  

(Central Act 43 of 1961); 

(13) “audit” means the examination of records, returns and other  documents maintained or furnished by the registered person under this  

Act or the rules made thereunder or under any other law for the time  

being in force to verify the correctness of turnover declared, taxes paid,  

refund claimed and input tax credit availed and to assess his compliance  

with the provisions of this Act or the rules made thereunder; 

(14) “authorized bank” shall mean a bank or a branch of a bank authorized by  the Government to collect the tax or any other amount payable under this  

Act; 

(15) “authorized representative” means the representative as referred to under  section 116; 

(16) “Board” means the Central Board of Excise and Customs constituted  under the Central Boards of Revenue Act, 1963 (Central Act 54 of  

1963); 

(17) “business” includes- 

(a) any trade, commerce, manufacture, profession, vocation,  

adventure, wager or any other similar activity, whether or not it is  

for a pecuniary benefit; 

(b) any activity or transaction in connection with or incidental or  

ancillary to sub-clause (a); 

(c) any activity or transaction in the nature of sub-clause (a), whether  

or not there is volume, frequency, continuity or regularity of such  

transaction; 

(d) supply or acquisition of goods including capital goods and  

services in connection with commencement or closure of  

business; 

(e) provision by a club, association, society, or any such body (for a  

subscription or any other consideration) of the facilities or  

benefits to its members; 

(f) admission, for a consideration, of persons to any premises; 

(g) services supplied by a person as the holder of any office which  

has been accepted by him in the course or furtherance of his trade,  

profession or vocation; 

(h) services provided by a race club by way of totalisator or a licence  

to book maker in such club; and 

(i) any activity or transaction undertaken by the Central  

Government, a State Government or any local authority in which  

they are engaged as public authorities;

1206 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(18) “business vertical” means a distinguishable component of an enterprise  

that is engaged in the supply of individual goods or services or a group  

of related goods or services which is subject to risks and returns that are  

different from those of the other business verticals. 

Explanation.For the purposes of this clause, factors that should be  

considered in determining whether goods or services  

are related include- 

(a) the nature of the goods or services; 

(b) the nature of the production processes; 

(c) the type or class of customers for the goods or services; 

(d) the methods used to distribute the goods or supply of  

services; and 

(e) the nature of regulatory environment (wherever applicable),  

including banking, insurance, or public utilities; 

(19) “capital goods” means goods, the value of which is capitalized in  

the books of account of the person claiming the input tax credit  

and which are used or intended to be used in the course or furtherance  

of business; 

(20) “casual taxable person” means a person who occasionally undertakes  

transactions involving supply of goods or services or both in the course  

or furtherance of business, whether as principal, agent or in any other  

capacity, in the taxable territory where he has no fixed place of  

business; 

(21) “central tax” means the central goods and services tax levied under  

section 9 of the Central Goods and Services Tax Act, 2017 (Central Act  

12 of 2017); 

(22) “cess” shall have the same meaning as assigned to it in the Goods and  

Services Tax (Compensation to States) Act, 2017 (Central Act 15 of  

2017); 

(23) “chartered accountant” means a chartered accountant as defined in  

clause (b) of sub-section (1) of section 2 of the Chartered Accountants  

Act, 1949 (Central Act 38 of 1949); 

(24) “Commissioner” means the Commissioner of State tax appointed under  

section 3 and includes the Principal Commissioner or Chief  

Commissioner of State tax appointed under section 3; 

(25) “Commissioner in the Board” means the Commissioner referred to in  

section 168 of the Central Goods and Services Tax Act, 2017 (Central  

Act 12 of 2017); 

(26) “common portal” means the common goods and services tax electronic  

portal referred to in section 146; 

(27) “common working days” shall mean such days in succession which are  

not declared as gazetted holidays by the Central Government or the  

Government of Haryana; 

(28) “company secretary” means a company secretary as defined in clause  

(c) of sub-section (1) of section 2 of the Company Secretaries Act,  

1980 (Central Act 56 of 1980);

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1207 

(29) “competent authority” means such authority as may be notified by the  Government; 

(30) “composite supply” means a supply made by a taxable person to a  recipient consisting of two or more taxable supplies of goods or services  

or both, or any combination thereof, which are naturally bundled and  

supplied in conjunction with each other in the ordinary course of  

business, one of which is a principal supply; 

Illustration.— Where goods are packed and transported with  

insurance, the supply of goods, packing materials,  

transport and insurance is a composite supply and  

supply of goods is a principal supply; 

(31) “consideration” in relation to the supply of goods or services or  both includes- 

(a) any payment made or to be made, whether in money or  

otherwise, in respect of, in response to, or for the inducement  

of, the supply of goods or services or both, whether by the  

recipient or by any other person but shall not include any  

subsidy given by the Central Government or a State  

Government; 

(b) the monetary value of any act or forbearance, in respect of, in  

response to, or for the inducement of, the supply of goods or  

services or both, whether by the recipient or by any other  

person but shall not include any subsidy given by the Central  

Government or a State Government: 

Provided that a deposit given in respect of the supply  

of goods or services or both shall not be considered as  

payment made for such supply unless the supplier applies  

such deposit as consideration for the said supply; 

(32) “continuous supply of goods” means a supply of goods which is  provided, or agreed to be provided, continuously or on recurrent  

basis, under a contract, whether or not by means of a wire, cable,  

pipeline or other conduit, and for which the supplier invoices the  

recipient on a regular or periodic basis and includes supply of such  

goods as the Government may, subject to such conditions, as it  

may, by notification, specify; 

(33) “continuous supply of services” means a supply of services which  is provided, or agreed to be provided, continuously or on recurrent  

basis, under a contract, for a period exceeding three months with  

periodic payment obligations and includes supply of such services  

as the Government may, subject to such conditions, as it may, by  

notification, specify;  

(34) “conveyance” includes a vessel, an aircraft and a vehicle;  

(35) “cost accountant” means a cost accountant as defined in clause (c)  of sub-section (1) of section 2 of the Cost and Works Accountants  

Act, 1959 (Central Act 23 of 1959); 

1208 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(36) “Council” means the Goods and Services Tax Council established  

under article 279A of the Constitution; 

(37) “credit note” means a document issued by a registered person  

under sub-section (1) of section 34; 

(38) “debit note” means a document issued by a registered person 

under sub-section (3) of section 34; 

(39) “deemed exports” means such supplies of goods as may be  

notified under section 147; 

(40) “designated authority” means such authority as may be notified by  

the Commissioner; 

(41) “document” includes written or printed record of any sort and  

electronic record as defined in clause (t) of section 2 of the  

Information Technology Act, 2000 (Central Act 21 of 2000); 

(42) “drawback” in relation to any goods manufactured in India and  

exported, means the rebate of duty, tax or cess chargeable on any  

imported inputs or on any domestic inputs or input services used  

in the manufacture of such goods; 

(43) “electronic cash ledger” means the electronic cash ledger referred  

to in sub-section (1) of section 49; 

(44) “electronic commerce” means the supply of goods or services or  

both, including digital products over digital or electronic network; 

(45) “electronic commerce operator” means any person who owns,  

operates or manages digital or electronic facility or platform for  

electronic commerce; 

(46) “electronic credit ledger” means the electronic credit ledger  

referred to in sub-section (2) of section 49; 

(47) “exempt supply” means supply of any goods or services or both  

which attracts nil rate of tax or which may be wholly exempt from  

tax under section 11, or under section 6 of the Integrated Goods  

and Services Tax Act, 2017 (Central Act 13 of 2017), and  

includes non-taxable supply; 

(48) “existing law” means any law, notification, order, rule or  

regulation relating to levy and collection of duty or tax on goods  

or services or both passed or made before the commencement of  

this Act by the Legislature or any Authority or person having the  

power to make such law, notification, order, rule or regulation; 

(49) “family” means,- 

(i) the spouse and children of the person; and 

(ii) the parents, grand-parents, brothers and sisters of the person  

if they are wholly or mainly dependent on the said person; 

(50) “fixed establishment” means a place (other than the registered  

place of business) which is characterised by a sufficient degree of  

permanence and suitable structure in terms of human and  

technical resources to supply services, or to receive and use 

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1209 services for its own needs;

1210 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(51) “fund” means the Consumer Welfare Fund established under  section 57; 

(52) “goods” means every kind of movable property other than money  and securities but includes actionable claim, growing crops, grass  

and things attached to or forming part of the land which are agreed  

to be severed before supply or under a contract of supply; 

(53) “Government” means the Government of the State of Haryana; 

(54) “Goods and Services Tax (Compensation to States) Act” means the  Goods and Services Tax (Compensation to States) Act, 2017  

(Central Act 15 of 2017); 

(55) “goods and services tax practitioner” means any person who has  been approved under section 48 to act as such practitioner; 

(56) “India” means the territory of India as referred to in article 1 of the  Constitution, its territorial waters, seabed and sub-soil underlying  

such waters, continental shelf, exclusive economic zone or any  

other maritime zone as referred to in the Territorial Waters,  

Continental Shelf, Exclusive Economic Zone and other Maritime  

Zones Act, 1976 (Central Act 80 of 1976), and the air space above  

its territory and territorial waters; 

(57) “Integrated Goods and Services Tax Act” means the Integrated  Goods and Services Tax Act, 2017 (Central Act 13 of 2017); 

(58) “integrated tax” means the integrated goods and services  tax levied under the Integrated Goods and Services Tax Act, 2017  

(Central Act 13 of 2017); 

(59) “input” means any goods other than capital goods used or intended  to be used by a supplier in the course or furtherance of business; 

(60) “input service” means any service used or intended to be used by a  supplier in the course or furtherance of business; 

(61) “Input Service Distributor” means an office of the supplier of  goods or services or both which received tax invoices issued under  

section 31 towards the receipt of input services and issued a  

prescribed document for the purposes of distributing the credit of  

Central Tax, State Tax, Integrated Tax or Union Territory Tax paid  

on the said services to a supplier of taxable goods or services or  

both having the same Permanent Account Number as that of the  

said office; 

(62) “input tax” in relation to a registered person, means the Central  Tax, State Tax, Integrated Tax or Union Territorial Tax charged on  

any supply of goods or services or both made to him and includes- 

(a) the integrated goods and services tax charged on import of  

goods; 

(b) the tax payable under the provisions of sub-sections (3) and  

(4) of section 9; 

(c) the tax payable under the provisions of sub-section (3) and  

(4) of section 5 of the Integrated Goods and Services Tax  

Act, 2017 (Central Act 13 of 2017);or

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1211 

(d) the tax payable under the provisions of sub-section (3) and  

(4) of section 9 of the Central Goods and Service Tax Act,  

2017 (Central Act 12 of 2017), 

but does not include the tax paid under the composition levy; 

(63) “input tax credit” means the credit of input tax; 

(64) “intra-State supply of goods” shall have the same meaning as  assigned to it in section 8 of the Integrated Goods and Services  

Tax Act, 2017 (Central Act 13 of 2017); 

(65) “intra-State supply of services” shall have the same meaning as  assigned to it in section 8 of the Integrated Goods and Services  

Tax Act, 2017 (Central Act 13 of 2017); 

(66) “invoice” or “tax invoice” means the tax invoice referred to in  section 31; 

(67) “inward supply” in relation to a person, shall mean receipt of  goods or services or both whether by purchase, acquisition or any  

other means, with or without consideration; 

(68) “job work” means any treatment or process undertaken by a  person on goods belonging to another registered person and the  

expression “job worker” shall be construed accordingly; 

(69) “local authority” means- 

(a) a “Panchayat” as defined in clause (d) of article 243 of the  

constitution; 

(b) a “Municipality” as defined in clause (e) of article 243P of  

the Constitution; 

(c) a Municipal Committee, a Zila Parishad, a District Board,  

and any other authority legally entitled to, or entrusted by  

the Central Government or any State Government with the  

control or management of a municipal or local fund; 

(d) a Cantonment Board as defined in section 3 of the  

Cantonments Act, 2006 (Central Act 41 of 2006); 

(e) a Regional Council or a District Council constituted under  

the Sixth Schedule to the Constitution; 

(f) a Development Board constituted under article 371 of the  

Constitution; or 

(g) a Regional Council constituted under article 371A of the  

Constitution; 

(70) “location of the recipient of services” means,- 

(a) where a supply is received at a place of business for which  

the registration has been obtained, the location of such place 

1212 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) of business; 

(b) where a supply is received at a place other than the place of  

business for which registration has been obtained (a fixed  

establishment elsewhere), the location of such fixed  

establishment;  

(c) where a supply is received at more than one establishment,  

whether the place of business or fixed establishment, the  

location of the establishment most directly concerned with  

the receipt of the supply; and 

(d) in absence of such places, the location of the usual place of  

residence of the recipient; 

(71) “location of the supplier of services” means,- 

(a) where a supply is made from a place of business for which  

the registration has been obtained, the location of such place  

of business; 

(b) where a supply is made from a place other than the place of  

business for which registration has been obtained  

(a fixed establishment elsewhere), the location of such fixed  

establishment; 

(c) where a supply is made from more than one establishment,  

whether the place of business or fixed establishment, the  

location of the establishment most directly concerned with  

the provisions of the supply; and 

(d) in absence of such placed, the location of the usual place of  

residence of the supplier; 

(72) “manufacture” means processing of raw material or inputs in any  manner that results in emergence of a new product having a  

distinct name, character and use and the term “manufacturer” shall  

be construed accordingly; 

(73) “market value” shall mean the full amount which a recipient of a  supply is required to pay in order to obtain the goods or services or  

both of like kind and quality at or about the same time and at the  

same commercial level where the recipient and the supplier are not  

related; 

(74) “mixed supply” means two or more individual supplies of goods or  services, or any combination thereof, made in conjunction with  

each other by a taxable person for a single price where such supply  

does not constitute a composite supply: 

Illustration.— A supply of a package consisting of canned foods,  

sweets, chocolates, cakes, dry fruits, aerated drinks  

and fruit juices when supplied for a single price is  

a mixed supply. Each of these items can be  

supplied separately and is not dependent on any  

other. It shall not be a mixed supply if these items 

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1213 

are supplied separately; 

(75) “money” means the Indian legal tender or any foreign currency,  cheque, promissory note, bill of exchange, letter of credit, draft,  

pay order, traveller cheque, money order, postal or electronic  

remittance or any other instrument recognized by the Reserve  

Bank of India when used as a consideration to settle an obligation  

or exchange with Indian legal tender of another denomination but  

shall not include any currency that is held for its numismatic  

value; 

(76) “motor vehicle” shall have the same meaning as assigned to it in  clause (28) of section 2 of the Motor Vehicles Act, 1988 (Central  

Act 59 of 1988); 

(77) “non-resident taxable person” means any person who occasionally  undertakes transactions involving supply of goods or services or  

both, whether as principal or agent or in any other capacity, but  

who has no fixed place of business or residence in India; 

(78) “non-taxable supply” means a supply of goods or services or both  which is not leviable to tax under this Act or under the Integrated  

Goods and Services Tax Act, 2017 (Central Act 13 of 2017); 

(79) “non-taxable territory” means the territory which is outside the  taxable territory; 

(80) “notification” means a notification published in the Official  Gazette and the expressions ‘notify’ and ‘notified’ shall be  

construed accordingly; 

(81) “other territory” includes territories other than those comprising in  a State and those referred to in sub-clauses (a) to (e) of clause  

(114); 

(82) “output tax” in relation to a taxable person, means the tax  chargeable under this Act on taxable supply of goods or services  

or both made by him or by his agent but excludes tax payable by  

him on reverse charge basis; 

(83) “outward supply” in relation to a taxable person, means supply of  goods or services or both, whether by sale, transfer, barter,  

exchange, licence, rental, lease or disposal or any other mode,  

made or agreed to be made by such person in the course or  

furtherance of business; 

(84) “person” includes- 

(a) an individual; 

(b) a Hindu Undivided Family; 

(c) a company; 

(d) a firm; 

(e) a Limited Liability Partnership;

1214 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(f) an association of persons or a body of individuals, whether  

incorporated or not in India or outside India; 

(g) any corporation established by or under any Central Act,  

State Act or Provincial Act or a Government company as  

defined in clause (45) of section 2 of the Companies Act,  

2013 (Central Act 18 of 2013); 

(h) any body corporate incorporated by or under the laws of a  

country outside India; 

(i) a co-operative society registered under any law relating to  

co-operative societies; 

(j) a local authority; 

(k) Central Government or a State Government; 

(l) society as defined under the Societies Registration Act,  

1860 (Central Act 21 of 1860); 

(m) trust; and 

(n) every artificial juridical person, not falling within any of  

the above;  

(85) “place of business” includes- 

(a) a place from where the business is ordinarily carried on,  

and includes a warehouse, a godwon or any other place  

where a taxable person stores his goods, supplies or  

receives goods or services or both; or  

(b) a place where a taxable person maintains his books of  

account; or 

(c) a place where a taxable person is engaged in business  

through an agent, by whatever name called; 

(86) “place of supply” means the place of supply as referred to in  

Chapter V of the Integrated Goods and Services Tax Act, 2017  

(Central Act 13 of 2017); 

(87) “prescribed” means prescribed by rules made under this Act on  

the recommendations of the Council; 

(88) “principal” means a person on whose behalf an agent carries on  

the business of supply or receipt of goods or services or both; 

(89) “principal place of business” means the place of business  

specified as the principal place of business in the certificate of  

registration; 

(90) “principal supply” means the supply of goods or services which  

constitutes the predominant element of a composite supply and to  

which any other supply forming part of that composite supply is  

ancillary; 

(91) “proper officer” in relation to any function to be performed under  

this Act, means the Commissioner or the officer of the State tax  

who is assigned that function by the Commissioner; 

(92) “quarter” shall mean a period comprising three consecutive 

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1215 

calendar months, ending on the last day of March, June,  

September and December of a calendar year; 

(93) “recipient” of supply of goods or services or both, means- 

(a) where a consideration is payable for the supply of goods or  

services or both, the person who is liable to pay that  

consideration; 

(b) where no consideration is payable for the supply of goods,  

the person to whom the goods are delivered or made  

available, or to whom possession or use of the goods is  

given or made available; and 

(c) where no consideration is payable for the supply of a  

service, the person to whom the service is rendered,  

and any reference to a person to whom a supply is made s  

hall be construed as a reference to the recipient of the supply and  

shall include an agent acting as such on behalf of the recipient in  

relation to the goods or services or both supplied; 

(94) “registered person” means a person who is registered under  section 25 but does not include a person having a Unique Identity  

Number; 

(95) “regulations” means the regulations made by the Government  under this Act on the recommendations of the Council; 

(96) “removal” in relation to goods, means- 

(a) despatch of the goods for delivery by the supplier thereof or  

by any other person acting on behalf of such supplier; or 

(b) collection of the goods by the recipient thereof or by any  

other person acting on behalf of such recipient; 

(97) “return” means any return prescribed or otherwise required to be  furnished by or under this Act or the rules made thereunder; 

(98) “reverse charge” means the liability to pay tax by the recipient of  supply of goods or services or both instead of the supplier of such  

goods or services or both under sub-section (3) or sub-section (4)  

of section 9, or under sub-section (3) or sub-section (4) of section  

5 of the Integrated Goods and Services Tax Act, 2017 (Central  

Act 13 of 2017); 

(99) “Revisional Authority” means an authority appointed or  authorized for revision of decision or orders as referred to in  

section 108; 

(100) “Schedule” means a Schedule appended to this Act; 

(101) “securities” shall have the same meaning as assigned to it in  clause (h) of section 2 of the Securities Contracts (Regulation)  

Act, 1956 (Central Act 42 of 1956); 

(102) “Services” means anything other than goods, money and  securities but includes activities relating to the use of money or its  

conversion by cash or by any other mode, from one form,  

currency or denomination, to another form, currency or 

1216 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

denomination for which a separate consideration is charged; 

(103) “State” means the State of Haryana; 

(104) “state tax” means the tax levied under this Act; 

(105) “supplier” in relation to any goods or services or both, shall mean  the person supplying the said goods or services or both and shall  

include an agent acting as such on behalf of such supplier in  

relation to the goods or services or both supplied; 

(106) “tax period” means the period for which the return is required to  be furnished; 

(107) “taxable person” means a person who is registered or liable to be  registered under section 22 or section 24;  

(108) “taxable supply” means a supply of goods or services or both  which is leviable to tax under this Act; 

(109) “taxable territory” means the territory to which the provisions of  this Act apply; 

(110) “telecommunication service” means service of any description  (including electronic mail, voice mail, data services, audio text  

services, video text services, radio paging and cellular mobile  

telephone services) which is made available to users by means of  

any transmission or reception of signs, signals, writing, images  

and sound or intelligence of any nature, by wire, radio, visual or  

other electromagnetic means; 

(111) “the Central Goods and Services Tax Act” means the Central  Goods and Services Tax Act, 2017 (Central Act 12 of 2017); 

(112) “turnover in State” means the aggregate value of all taxable  supplies (excluding the value of inward supplies on which tax is  

payable by a person on reverse charge basis) and exempt supplies  

made within a State by a taxable person, exports of goods or  

services or both and inter-State supplies of goods or services or  

both made from the State by the said taxable person but excludes  

Central Tax, State Tax, Union Territory Tax, Integrated Tax and  

cess; 

(113) “usual place of residence” means- 

(a) in case of an individual, the place where he ordinarily  

resides; 

(b) in other cases, the place where the person is incorporated  

or otherwise legally constituted; 

(114) “Union territory” means the territory of,- 

(a) the Andaman and Nicobar Islands; 

(b) Lakshadweep; 

(c) Dadra and Nagar Haveli; 

(d) Daman and Diu; 

(e) Chandigarh; and

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1217 

(f) other territory; 

Explanation.— For the purposes of this Act, each of the  

territories specified in sub-clauses (a) to (f)  

shall be considered to be a separate Union  

territory; 

(115) “Union territory tax” means the Union territory goods and  services tax levied under the Union Territory Goods and Services  

Tax Act, 2017 (Central Act 14 of 2017); 

(116) “Union Territory Goods and Services Tax Act” means the Union  Territory Goods and Services Tax Act, 2017 (Central Act 14 of  

2017); 

(117) “valid return” means a return furnished under sub-section (1) of  section 39 on which self-assessed tax has been paid in full; 

(118) “voucher” means an instrument where there is an obligation to  accept it as consideration or part consideration for a supply of  

goods or services or both and where the goods or services or both  

to be supplied or the identities of their potential suppliers are  

either indicated on the instrument itself or in related  

documentation, including the terms and conditions of use of such  

instrument; 

(119) “works contract” means a contract for building, construction,  fabrication, completion, erection, installation, fitting out,  

improvement, modification, repair, maintenance, renovation,  

alteration or commissioning of any immovable property wherein  

transfer of property in goods (whether as goods or in some other  

form) is involved in the execution of such contract;  

(120) words and expressions used and not defined in this Act but  defined in the Integrated Goods and Services Tax Act, 2017  

(Central Act 13 of 2017), the Central Goods and Services Tax  

Act, 2017 (Central Act 12 of 2017), the Union Territory Goods  

and Services Tax Act, 2017 (Central Act 14 of 2017) and the  

Goods and Services Tax (Compensation to States) Act, 2017  

(Central Act 15 of 2017) shall have the same meanings as  

assigned to them respectively in those Acts. 

CHAPTER II 

ADMINISTRATION 

Officers under this  Act. 

  1. The Government shall, by notification, appoint the following classes of  officers for the purposes of this Act, namely:- 

(a) Principal Commissioner or Chief Commissioner or  Commissioner of State tax;  

(b) Special Commissioners of State tax; 

(c) Additional Commissioners of State tax;

1218 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(d) Joint Commissioners of State tax; 

(e) Deputy Commissioners of State tax; 

(f) Assistant Commissioners of State tax;  

(g) Excise & Taxation Officer of the State tax; 

(h) Assistant Excise & Taxation Officer of the State tax; and 

(i) any other class of officers as it may deem fit: 

Provided that, the officers appointed under the Haryana Value Added  Tax Act, 2003 (6 of 2003) shall be deemed to be the officers appointed under  the provisions of this Act. 

  1. (1) The Government may, in addition to the officers as may be  notified under section 3, appoint such persons as it may think fit to be the  officers under this Act. 

(2) The Commissioner shall have jurisdiction over the whole of the  State, the Special Commissioner and an Additional Commissioner in respect  of all or any of the functions assigned to them, shall have jurisdiction over the  whole of the State or where the Government so directs, over any local area  thereof, and all other officers shall, subject to such conditions as may be  specified, have jurisdiction over the whole of the State or over such local  areas as the Commissioner may, by order, specify. 

  1. (1) Subject to such conditions and limitations as the Commissioner may impose, an officer of State tax may exercise the powers and discharge  the duties conferred or imposed on him under this Act. 

(2) An officer of State tax may exercise the powers and discharge  the duties conferred or imposed under this Act on any other officer of State  tax who is subordinate to him. 

(3) The Commissioner may, subject to such conditions and  limitations as may be specified in this behalf by him, delegate his powers to  any other officer who is subordinate to him. 

(4) Notwithstanding anything contained in this section, an  Appellate Authority shall not exercise the powers and discharge the duties  conferred or imposed on any other officer of State tax.  

  1. (1) Without prejudice to the provisions of this Act, the officers  appointed under the Central Goods and Services Tax Act, 2017 (Central Act  12 of 2017) are authorised to be the proper officers for the purposes of this  Act, subject to such conditions as the Government shall, on the  recommendations of the Council, by notification, specify. 

(2) Subject to the conditions specified in the notification issued  under sub-section (1),- 

(a) where any proper officer issues an order under this Act,  he shall also issue an order under the Central Goods and  

Services Tax Act, 2017 (Central Act 12 of 2017) as  

Appointment of  officers. 

Powers of officers. 

Authorisation of  officers of central  tax as proper  

officer in certain  circumstances.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1219 

authorised by the said Act under intimation to the  

jurisdictional officer of central tax; 

(b) where a proper officer under the Central Goods and  

Services Tax Act, 2017 (Central Act 12 of 2017) has  

initiated any proceedings on a subject matter, no  

proceedings shall be initiated by the proper officer  

under this Act on the same subject matter. 

(3) Any proceedings for rectification, appeal and revision,  

wherever applicable, of any order passed by an officer appointed under this  Act, shall not lie before an officer appointed under the Central Goods and  Services Tax Act, 2017 (Central Act 12 of 2017). 

CHAPTER III 

LEVY AND COLLECTION OF TAX 

Scope of supply. 7. (1) For the purposes of this Act, the expression “supply” includes- 

(a) all forms of supply of goods or services or both such as  

sale, transfer, barter, exchange, license, rental, lease or  

disposal made or agreed to be made for a consideration  

by a person in the course or furtherance of business; 

(b) import of services for a consideration whether or not in  

the course or furtherance of business;  

(c) the activities specified in Schedule I, made or agreed to  

be made without a consideration; and 

(d) the activities to be treated as supply of goods or supply  

of services as referred to in Schedule II. 

(2) Notwithstanding anything contained in sub-section (1),- 

(a) activities or transactions specified in Schedule III; or  

(b) such activities or transactions undertaken by the Central  

Government, a State Government or any local authority  

in which they are engaged as public authorities, as may  

be notified by the Government on the recommendations  

of the Council, 

shall be treated neither as a supply of goods nor a supply of  

services. 

(3) Subject to the provisions of sub-sections (1) and (2), the  

Government may, on the recommendations of the Council, specify, by  notification, the transactions that are to be treated as-

1220 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) (a) a supply of goods and not as a supply of services; or 

(b) a supply of services and not as a supply of goods. 

  1. The tax liability on a composite or a mixed supply shall be  determined in the following manner, namely:- 

(a) a composite supply comprising two or more supplies, one of  which is a principal supply, shall be treated as a supply of  such principal supply; and  

(b) a mixed supply comprising two or more supplies shall be  treated as a supply of that particular supply which attracts the  highest rate of tax. 

  1. (1) Subject to the provisions of sub-section (2), there shall be  levied a tax called the Haryana Goods and Services Tax on all intra-State  supplies of goods or services or both, except on the supply of alcoholic  liquor for human consumption, on the value determined under section 15  and at such rates, not exceeding twenty percent, as may be notified by the  Government on the recommendations of the Council and collected in such  manner, as may be prescribed and shall be paid by the taxable person. 

(2) The State tax on the supply of petroleum crude, high speed diesel,  motor spirit (commonly known as petrol), natural gas and aviation turbine  fuel, shall be levied with effect from such date, as may be notified by the  Government on the recommendations of the Council. 

(3) The Government may, on the recommendations of the Council, by  notification, specify categories of supply of goods or services or both, the  tax on which shall be paid on reverse charge basis by the recipient of such  goods or services or both and all the provisions of this Act shall apply to  such recipient as if he is the person liable for paying the tax in relation to  the supply of such goods or services or both.  

(4) The State tax in respect of the supply of taxable goods or services  or both by a supplier, who is not registered, to a registered person shall be  paid by such person on reverse charge basis as the recipient and all the  provisions of this Act shall apply to such recipient as if he is the person  liable for paying the tax in relation to the supply of such goods or services  or both.  

(5) The Government may, on the recommendations of the Council, by  notification, specify categories of services the tax on intra-State supplies of  which shall be paid by the electronic commerce operator if such services are  supplied through it, and all the provisions of this Act shall apply to such  electronic commerce operator as if he is the supplier liable for paying the  tax in relation to the supply of such services: 

Provided that where an electronic commerce operator does not  have a physical presence in the taxable territory, any person representing  such electronic commerce operator for any purpose in the taxable territory  

Tax liability on  

composite and mixed  supplies. 

Levy and collection.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1221 shall be liable to pay tax: 

Provided further that where an electronic commerce operator  

does not have a physical presence in the taxable territory and also he does  not have a representative in the said territory, such electronic commerce  operator shall appoint a person in the taxable territory for the purpose of  paying tax and such person shall be liable to pay tax. 

Composition levy. 10. (1) Notwithstanding anything to the contrary contained in this Act  but subject to the provisions of sub-sections (3) and (4) of section 9, a  registered person, whose aggregate turnover in the preceding financial year  did not exceed fifty lakh rupees may opt to pay, in lieu of the tax payable by  him, an amount calculated at such rate, as may be prescribed, but not  exceeding,- 

(a) one percent of the turnover in State in case of a  

manufacturer; 

(b) two and a half percent of the turnover in State in case of  

persons engaged in making supplies referred to in clause (b)  

of paragraph 6 of Schedule II; and 

(c) half percent of the turnover in State in case of other  

suppliers,  

subject to such conditions and restrictions as may be prescribed: 

Provided that the Government may, by notification, increase the  

said limit of fifty lakh rupees to such higher amount, not exceeding one crore  rupees, as may be recommended by the Council. 

(2) The registered person shall be eligible to opt under  

sub-section (1), if.– 

(a) he is not engaged in the supply of services other than  

supplies referred to in clause (b) of paragraph 6 of Schedule  

II; 

(b) he is not engaged in making any supply of goods which are  

not leviable to tax under this Act;  

(c) he is not engaged in making any inter-State outward  

supplies of goods; 

(d) he is not engaged in making any supply of goods through an  

electronic commerce operator who is required to collect tax  

at source under section 52; and 

(e) he is not a manufacturer of such goods, as may be notified  

by the Government, on the recommendations of the  

Council: 

Provided that where more than one registered persons are having  

the same Permanent Account Number (issued under the Income-tax Act,  1961) (Central Act 43 of 1961), the registered person shall not be eligible to 

1222 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

opt for the scheme under sub-section (1) unless all such registered persons  opt to pay tax under that sub-section. 

(3) The option availed of by a registered person under sub-section (1)  

shall lapse with effect from the day on which his aggregate turnover during a  financial year exceeds the limit specified under sub-section (1).  

(4) A taxable person to whom the provisions of sub-section (1) apply  

shall not collect any tax from the recipient on supplies made by him nor shall  he be entitled to any credit of input tax. 

(5) If the proper officer has reasons to believe that a taxable person  

has paid tax under sub-section (1) despite not being eligible, such person  shall, in addition to any tax that may be payable by him under any other  provisions of this Act, be liable to a penalty and the provisions of section 73  or section 74 shall, mutatis mutandis, apply for determination of tax and  penalty.  

  1. (1) Where the Government is satisfied that it is necessary in the  public interest so to do, it may, on the recommendations of the Council, by  notification, exempt generally, either absolutely or subject to such conditions  as may be specified therein, goods or services or both of any specified  description from the whole or any part of the tax leviable thereon with effect  from such date as may be specified in such notification.  

(2) Where the Government is satisfied that it is necessary in the public  interest so to do, it may, on the recommendations of the Council, by special  order in each case, under circumstances of an exceptional nature to be stated  in such order, exempt from payment of tax any goods or services or both on  which tax is leviable.  

(3) The Government may, if it considers necessary or expedient so to  do for the purpose of clarifying the scope or applicability of any notification  issued under sub-section (1) or order issued under sub-section (2), insert an  explanation in such notification or order, as the case may be, by notification  at any time within one year of issue of the notification under sub-section (1)  or order under sub-section (2), and every such explanation shall have effect as  if it had always been the part of the first such notification or order, as the case  may be.  

(4) Any notification issued by the Central Government, on the  recommendations of the Council, under sub-section (1) of section 11 or order  issued under sub-section (2) of the said section of the Central Goods and  Services Tax Act, 2017 (Central Act 12 of 2017) shall be deemed to be a  notification or, as the case may be, an order issued under this Act. 

Explanation.— For the purposes of this section, where an  exemption in respect of any goods or services or  

both from the whole or part of the tax leviable  

thereon has been granted absolutely, the  

registered person supplying such goods or  

services or both shall not collect the tax, in  

Power to grant  exemption from  tax.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1223 

excess of the effective rate, on such supply of  

goods or services or both. 

CHAPTER IV 

TIME AND VALUE OF SUPPLY 

Time of supply of  goods. 

  1. (1) The liability to pay tax on goods shall arise at the time of supply,  as determined in accordance with the provisions of this section. (2) The time of supply of goods shall be the earlier of the following  dates, namely:- 

(a) the date of issue of invoice by the supplier or the last date on  which he is required, under sub-section (1) of section 31, to  issue the invoice with respect to the supply; or 

(b) the date on which the supplier receives the payment with  respect to the supply:  

Provided that where the supplier of taxable goods receives an  amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at  the option of the said supplier, be the date of issue of invoice in respect of  such excess amount. 

Explanation 1.— For the purposes of clauses (a) and (b),  “supply” shall be deemed to have been made  

to the extent it is covered by the invoice or, as  

the case may be, the payment. 

Explanation 2.— For the purposes of clause (b), “the date on  which the supplier receives the payment” shall  

be the date on which the payment is entered in 

his books of account or the date on which the  

payment is credited to his bank account,  

whichever is earlier. 

(3) In case of supplies in respect of which tax is paid or liable to be  paid on reverse charge basis, the time of supply shall be the earliest of the  following dates, namely:— 

(a) the date of the receipt of goods; or 

(b) the date of payment as entered in the books of account of the  recipient or the date on which the payment is debited in his  bank account, whichever is earlier; or 

(c) the date immediately following thirty days from the date of  issue of invoice or any other document, by whatever name  called, in lieu thereof by the supplier: 

Provided that where it is not possible to determine the time of  supply under clause (a) or clause (b) or clause (c), the time of supply shall be  the date of entry in the books of account of the recipient of supply. 

(4) In case of supply of vouchers by a supplier, the time of supply  shall be-

1224 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(a) the date of issue of voucher, if the supply is identifiable at  

that point; or 

(b) the date of redemption of voucher, in all other cases. 

(5) Where it is not possible to determine the time of supply under the  

provisions of sub-section (2) or sub-section (3) or sub-section (4), the time  of supply shall- 

(a) in a case where a periodical return has to be filed, be the  

date on which such return is to be filed; or  

(b) in any other case, be the date on which the tax is paid. 

(6) The time of supply to the extent it relates to an addition in the  

value of supply by way of interest, late fee or penalty for delayed payment  of any consideration shall be the date on which the supplier receives such  addition in value. 

  1. (1) The liability to pay tax on services shall arise at the time of  supply, as determined in accordance with the provisions of this section. (2) The time of supply of services shall be the earliest of the  following dates, namely:– 

(a) the date of issue of invoice by the supplier, if the invoice is  issued within the period prescribed under sub-section (2) of  section 31 or the date of receipt of payment, whichever is  earlier; or 

(b) the date of provision of service, if the invoice is not issued  within the period prescribed under sub-section (2) of  section 31 or the date of receipt of payment, whichever is  earlier; or  

(c) the date on which the recipient shows the receipt of services  in his books of account, in a case where the provisions of  clause (a) or clause (b) do not apply: 

Provided that where the supplier of taxable service receives an  amount upto one thousand rupees in excess of the amount indicated in the  tax invoice, the time of supply to the extent of such excess amount shall, at  the option of the said supplier, be the date of issue of invoice relating to  such excess amount.  

Explanation.— For the purposes of clauses (a) and (b)- 

(i) the supply shall be deemed to have been  

made to the extent it is covered by the  

invoice or, as the case may be, the payment; 

(ii) “the date of receipt of payment” shall be the  

date on which the payment is entered in the  

books of account of the supplier or the date  

on which the payment is credited to his  

bank account, whichever is earlier. 

(3) In case of supplies in respect of which tax is paid or liable to be  

Time of supply of  services.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1225 

paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:–– 

(a) the date of payment as entered in the books of account of the  

recipient or the date on which the payment is debited in his  

bank account, whichever is earlier, or 

(b) the date immediately following sixty days from the date of  

issue of invoice or any other document, by whatever name  

called, in lieu thereof by the supplier: 

Provided that where it is not possible to determine the time of  

supply under clause (a) or clause (b), the time of supply shall be the date of  entry in the books of account of the recipient of supply: 

Provided further that in case of supply by associated enterprises,  

where the supplier of service is located outside India, the time of supply shall  be the date of entry in the books of account of the recipient of supply or the  date of payment, whichever is earlier. 

(4) In case of supply of vouchers by a supplier, the time of supply  

shall be- 

(a) the date of issue of voucher, if the supply is identifiable at  

that point; or 

(b) the date of redemption of voucher, in all other cases. 

(5) Where it is not possible to determine the time of supply under the  

provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of  supply shall- 

(a) in a case where a periodical return has to be filed, be the date  

on which such return is to be filed; or 

(b) in any other case, be the date on which the tax is paid. 

(6) The time of supply to the extent it relates to an addition in the  

value of supply by way of interest, late fee or penalty for delayed payment of  any consideration shall be the date on which the supplier receives such  addition in value. 

Change in rate of  tax in respect of  supply of goods or  services. 

  1. Notwithstanding anything contained in section 12 or section 13, the  time of supply, where there is a change in the rate of tax in respect of goods  or services or both, shall be determined in the following manner, namely:– 

(a) in case the goods or services or both have been supplied before the  change in rate of tax,–– 

(i) where the invoice for the same has been issued and the  payment is also received after the change in rate of tax, the  time of supply shall be the date of receipt of payment or the  date of issue of invoice, whichever is earlier; or  

(ii) where the invoice has been issued prior to the change in rate  of tax but payment is received after the change in rate of tax,  the time of supply shall be the date of issue of invoice; or  

(iii) where the payment has been received before the change in 

1226 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

rate of tax, but the invoice for the same is issued after the  

change in rate of tax, the time of supply shall be the date of  

receipt of payment; 

(b) in case the goods or services or both have been supplied after the  

change in rate of tax,–– 

(i) where the payment is received after the change in rate of tax  

but the invoice has been issued prior to the change in rate of  

tax, the time of supply shall be the date of receipt of  

payment; or 

(ii) where the invoice has been issued and payment is received  

before the change in rate of tax, the time of supply shall be  

the date of receipt of payment or date of issue of invoice,  

whichever is earlier; or 

(iii) where the invoice has been issued after the change in rate of  

tax but the payment is received before the change in rate of  

tax, the time of supply shall be the date of issue of invoice: 

Provided that the date of receipt of payment shall be the date of credit  

in the bank account if such credit in the bank account is after four working  days from the date of change in the rate of tax. 

Explanation.— For the purposes of this section, “the date of  

receipt of payment” shall be the date on which  

the payment is entered in the books of account  

of the supplier or the date on which the  

payment is credited to his bank account,  

whichever is earlier. 

  1. (1) The value of a supply of goods or services or both shall 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 of  the supply are not related and the price is the sole consideration for the  supply. 

(2) The value of supply shall include– 

(a) any taxes, duties, cesses, fees and charges levied under any  law for the time being in force other than this Act, the  Central Goods and Services Tax Act, 2017 (Central Act 12  of 2017) and the Goods and Services Tax (Compensation to  States) Act, 2017 (Central Act 15 of 2017) if charged  separately by the supplier; 

(b) any amount that the supplier is liable to pay in relation to  such supply but which has been incurred by the recipient of  the supply and not included in the price actually paid or  payable for the goods or services or both; 

(c) incidental expenses, including commission and packing,  charged by the supplier to the recipient of a supply and any  

Value of taxable  supply

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1227 

amount charged for anything done by the supplier in respect  

of the supply of goods or services or both at the time of, or  

before delivery of goods or supply of services; 

(d) interest or late fee or penalty for delayed payment of any  

consideration for any supply; and 

(e) subsidies directly linked to the price excluding subsidies  

provided by the Central Government and State  

Governments. 

Explanation.— For the purposes of this sub-section, the amount  

of subsidy shall be included in the value of  

supply of the supplier who receives the subsidy.  

(3) The value of the supply shall not include any discount which is  given- 

(a) before or at the time of the supply if such discount has been  

duly recorded in the invoice issued in respect of such supply;  

and 

(b) after the supply has been effected, if – 

(i) such discount is established in terms of an agreement  

entered into at or before the time of such supply and  

specifically linked to relevant invoices; and  

(ii) input tax credit as is attributable to the discount on the  

basis of document issued by the supplier has been  

reversed by the recipient of the supply. 

(4) Where the value of the supply of goods or services or both cannot  be determined under sub-section (1), the same shall be determined in such  manner, as may be prescribed.  

(5) 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 shall be determined in such manner,  as may be prescribed. 

Explanation.— For the purposes of this Act,- 

(a) persons shall be deemed to be “related persons’’ if – 

(i) such persons are officers or directors of one another’s  

businesses;  

(ii) such persons are legally recognised partners in  

business;  

(iii) such persons are employer and employee;  

(iv) any person directly or indirectly owns, controls or  

holds twenty-five percent or more of the outstanding 

1228 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

voting stock or shares of both of them;  

(v) one of them directly or indirectly controls the other;  

(vi) both of them are directly or indirectly controlled by a  

third person;  

(vii) together they directly or indirectly control a third  

person; or  

(viii) they are members of the same family;  

(b) the term “person” also includes legal persons. 

(c) persons who are associated in the business of one another in  

that one is the sole agent or sole distributor or sole  

concessionaire, howsoever described, of the other, shall be  

deemed to be related. 

CHAPTER V 

INPUT TAX CREDIT 

  1. (1) Every registered person shall, subject to such conditions and  restrictions as may be prescribed and in the manner specified in section 49,  be entitled to take credit of input tax charged on any supply of goods or  services or both to him which are used or intended to be used in the course  or furtherance of his business and the said amount shall be credited to the  electronic credit ledger of such person. 

(2) Notwithstanding anything contained in this section, no registered  person shall be entitled to the credit of any input tax in respect of any supply  of goods or services or both to him unless,–– 

(a) he is in possession of a tax invoice or debit note issued by a  supplier registered under this Act, or such other tax paying  documents as may be prescribed;  

(b) he has received the goods or services or both. 

Explanation.— For the purposes of this clause, it shall be  deemed that the registered person has received  

the goods where the goods are delivered by the  

supplier to a recipient or any other person on the  

direction of such registered person, whether  

acting as an agent or otherwise, before or during  

movement of goods, either by way of transfer of  

documents of title to goods or otherwise; 

(c) subject to the provisions of section 41, the tax charged in  respect of such supply has been actually paid to the  Government, either in cash or through utilisation of input  tax credit admissible in respect of the said supply; and 

(d) he has furnished the return under section 39: 

Eligibility and  

conditions for taking  input tax credit.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1229 

Provided that where the goods against an invoice are received in  

lots or instalments, the registered person shall be entitled to take credit upon  receipt of the last lot or instalment: 

Provided further that where a recipient fails to pay to the supplier  

of goods or services or both, other than the supplies on which tax is payable  on reverse charge basis, the amount towards the value of supply along with  tax payable thereon within a period of one hundred and eighty days from the  date of issue of invoice by the supplier, an amount equal to the input tax  credit availed by the recipient shall be added to his output tax liability, along  with interest thereon, in such manner as may be prescribed: 

Provided also that the recipient shall be entitled to avail of the  

credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. 

(3) Where the registered person has claimed depreciation on the tax  

component of the cost of capital goods and plant and machinery under the  provisions of the Income-tax Act, 1961 (Central Act 43 of 1961), the input  tax credit on the said tax component shall not be allowed. 

(4) A registered person shall not be entitled to take input tax credit in  

respect of any invoice or debit note for supply of goods or services or both  after the due date of furnishing of the return under section 39 for the month  of September following the end of financial year to which such invoice or  invoice relating to such debit note pertains or furnishing of the relevant  annual return, whichever is earlier. 

Apportionment of  credit and blocked  credits. 

  1. (1) Where the goods or services or both are used by the registered  person partly for the purpose of any business and partly for other purposes,  the amount of credit shall be restricted to so much of the input tax as is  attributable to the purposes of his business. 

(2) Where the goods or services or both are used by the registered  person partly for effecting taxable supplies including zero-rated supplies  under this Act or under the Integrated Goods and Services Tax Act and  partly for effecting exempt supplies under the said Acts, the amount of credit  shall be restricted to so much of the input tax as is attributable to the said  taxable supplies including zero-rated supplies. 

(3) The value of exempt supply under sub-section (2) shall be such as  may be prescribed, and shall include supplies on which the recipient is liable  to pay tax on reverse charge basis, transactions in securities, sale of land and,  subject to clause (b) of paragraph 5 of Schedule II, sale of building; 

(4) A banking company or a financial institution including a non banking financial company, engaged in supplying services by way of  accepting deposits, extending loans or advances shall have the option to  either comply with the provisions of sub-section (2), or avail of, every  month, an amount equal to fifty percent of the eligible input tax credit on  inputs, capital goods and input services in that month and the rest shall lapse:

1230 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

Provided that the option once exercised shall not be withdrawn during  

the remaining part of the financial year: 

Provided further that the restriction of fifty percent shall not apply to  

the tax paid on supplies made by one registered person to another registered  person having the same Permanent Account Number.  

(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 and other conveyances except when they are  

used- 

(i) for making the following taxable supplies, namely:- 

(A) further supply of such vehicles or conveyances;  

or 

(B) transportation of passengers; or  

(C) imparting training on driving, flying, navigating  

such vehicles or conveyances;  

(ii) for transportation of goods; 

(b) the following supply of goods or services or both:- 

(i) food and beverages, outdoor catering, beauty  

treatment, health services, cosmetic and plastic  

surgery except where an inward supply of goods or  

services or both of a particular category 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 element of a taxable composite or mixed  

supply;  

(ii) membership of a club, health and fitness centre; 

(iii) rent-a-cab, life insurance and health insurance except  

where – 

(A) the Government notifies the services which are  

obligatory for an employer to provide to its  

employees under any law for the time being in  

force; or 

(B) such inward supply of goods or services or both  

of a particular category is used by a registered  

person for making an outward taxable supply of  

the same category of goods or services or both  

or as part of a taxable composite or mixed 

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1231 supply; and 

(iv) travel benefits extended to employees on vacation such  

as leave or home travel concession. 

(c) works contract services when supplied for construction of an  

immovable property (other than plant and machinery) except  

where it is an input service for further supply of works  

contract service; 

(d) goods or services or both received by a taxable person for  

construction of an immovable property (other than plant or  

machinery) on his own account including when such goods  

or services or both are used in the course or furtherance of  

business. 

Explanation.— For the purposes of clauses (c) and (d), the  

expression “construction” includes 

re-construction, renovation, additions or  

alterations or repairs, to the extent of  

capitalisation, to the said immovable property; 

(e) goods or services or both on which tax has been paid under  

section 10;  

(f) goods or services or both received by a non-resident taxable  

person except on goods imported by him; 

(g) goods or services or both used for personal consumption; 

(h) goods lost, stolen, destroyed, written off or disposed of by  

way of gift or free samples; and 

(i) any tax paid in accordance with the provisions of sections  

74, 129 and 130. 

(6) The Government may prescribe the manner in which the credit  referred to in sub-sections (1) and (2) may be attributed. 

Explanation.— For the purposes of this Chapter and Chapter VI,  

the expression “plant and machinery” means  

apparatus, equipment, and machinery fixed to  

earth by foundation or structural support that are  

used for making outward supply of goods or  

services or both and includes such foundation  

and structural supports but excludes- 

(i) land, building or any other civil structures;

1232 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) (ii) telecommunication towers; and  

(iii) pipelines laid outside the factory premises. 

  1. (1) Subject to such conditions and restrictions, as may be  prescribed- 

(a) a person who has applied for registration under this Act  within thirty days from the date on which he becomes  liable to registration and has been granted such  registration shall be entitled to take credit of input tax in  respect of inputs held in stock and inputs contained in  semi-finished or finished goods held in stock on the day  immediately preceding the date from which he becomes  liable to pay tax under the provisions of this Act; 

(b) a person who takes registration under sub-section (3) of  section 25 shall be entitled to take credit of input tax in  respect of inputs held in stock and inputs contained in  semi-finished or finished goods held in stock on the day  immediately preceding the date of grant of registration; 

(c) where any registered person ceases to pay tax under  section 10, he shall be entitled to take credit of input tax  in respect of inputs held in stock, inputs contained in  semi-finished or finished goods held in stock and on  capital goods on the day immediately preceding the date  from which he becomes liable to pay tax under section 9: 

Provided that the credit on capital goods shall be  

reduced by such percentage points, as may be  prescribed; 

(d) where an exempt supply of goods or services or both by  a registered person becomes a taxable supply, such  person shall be entitled to take credit of input tax in  respect of inputs held in stock and inputs contained in  semi-finished or finished goods held in stock relatable to  such exempt supply and on capital goods exclusively  used for such exempt supply on the day immediately  preceding the date from which such supply becomes  taxable: 

Provided that the credit on capital goods shall  

be reduced by such percentage points, as may be  prescribed. 

(2) A registered person shall not be entitled to take input tax  credit under sub-section (1) in respect of any supply of goods or services  

Availability of credit  in special  

circumstances.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1233 

or both to him after the expiry of one year from the date of issue of tax  invoice relating to such supply. 

(3) Where there is a change in the constitution of a registered person  

on account of sale, merger, demerger, amalgamation, lease or transfer of the  business with the specific provisions for transfer of liabilities, the said  registered person shall be allowed to transfer the input tax credit which remains unutilised in his electronic credit ledger to such sold, merged,  demerged, amalgamated, leased or transferred business in such manner, as  may be prescribed.  

(4) Where any registered person who has availed of input tax credit  

opts to pay tax under section 10 or, where the goods or services or both  supplied by him become wholly exempt, he shall pay an amount, by way of  debit in the electronic credit ledger or electronic cash ledger, equivalent to  the credit of input tax in respect of inputs held in stock and inputs contained  in semi-finished or finished goods held in stock and on capital goods,  reduced by such percentage points, as may be prescribed, on the day  immediately preceding the date of exercising of such option or, as the case  may be, the date of such exemption: 

Provided that after payment of such amount, the balance of  

input tax credit, if any, lying in his electronic credit ledger shall lapse. 

(5) The amount of credit under sub-section (1) and the amount payable  

under sub-section (4) shall be calculated in such manner, as may be  prescribed.  

(6) In case of supply of capital goods or plant and machinery, on  

which input tax credit has been taken, the registered person shall pay an  amount equal to the input tax credit taken on the said capital goods or plant  and machinery reduced by such percentage points, as may be prescribed or  the tax on the transaction value of such capital goods or plant and machinery  determined under section15, whichever is higher: 

Provided that where refractory bricks, moulds and dies, jigs and  

fixtures are supplied as scrap, the taxable person may pay tax on the  transaction value of such goods determined under section 15. 

Taking input tax  credit in respect of  inputs and capital  goods sent for job  work. 

  1. (1) The principal shall, subject to such conditions and restrictions, as  may be prescribed, be allowed input tax credit on inputs sent to a job worker  for job work. 

(2) Notwithstanding anything contained in clause (b) of sub-section  (2) of section 16, the principal shall be entitled to take credit of input tax on  inputs even if the inputs are directly sent to a job worker for job work  without being first brought to his place of business. 

(3) Where the inputs sent for job work are not received back by the  principal after completion of job work or otherwise or are not supplied from  the place of business of the job worker in accordance with clause (a) or 

1234 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

clause (b) of sub-section (1) of section 143 within one year of being sent out,  it shall be deemed that such inputs had been supplied by the principal to the  job worker on the day when the said inputs were sent out:  

Provided that where the inputs are sent directly to a job worker, the  

period of one year shall be counted from the date of receipt of inputs by the  job worker. 

(4) The principal shall, subject to such conditions and restrictions, as  

may be prescribed, be allowed input tax credit on capital goods sent to a job  worker for job work. 

(5) Notwithstanding anything contained in clause (b) of  

sub-section (2) of section 16, the principal shall be entitled to take credit of  input tax on capital goods even if the capital goods are directly sent to a job  worker for job work without being first brought to his place of business. 

(6) Where the capital goods sent for job work are not received back  

by the principal within a period of three years of being sent out, it shall be  deemed that such capital goods had been supplied by the principal to the job  worker on the day when the said capital goods were sent out:  

Provided that where the capital goods are sent directly to a job  

worker, the period of three years shall be counted from the date of receipt of  capital goods by the job worker. 

(7) Nothing contained in sub-section (3) or sub-section (6) shall apply  

to moulds and dies, jigs and fixtures, or tools sent out to a job worker for  job work.  

Explanation.— For the purpose of this section, “principal” means the  person referred to in section 143. 

  1. (1) The Input Service Distributor shall distribute the credit of State  tax as State tax or integrated tax and integrated tax as integrated tax or State  tax, by way of issue of document containing the amount of input tax credit  being distributed in such manner, as may be prescribed.  

(2) The Input Service Distributor may distribute the credit subject to  the following conditions, namely:- 

(a) the credit can be distributed to the recipients of credit  against a document containing such details, as may be  prescribed; 

(b) the amount of the credit distributed shall not exceed the  amount of credit available for distribution;  

(c) the credit of tax paid on input services attributable to a  recipient of credit shall be distributed only to that recipient;  

(d) the credit of tax paid on input services attributable to more  than one recipient of credit shall be distributed amongst  such recipients to whom the input service is attributable  

Manner of  

distribution of credit  by Input Service  Distributor.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1235 

and such distribution shall be pro rata on the basis of the  

turnover in a State or turnover in a Union territory of such 

recipient, during the relevant  

period, to the aggregate of the turnover of all such recipients  

to whom such input service is attributable and which are  

operational in the current year, during the said relevant  

period; 

(e) the credit of tax paid on input services attributable to all  

recipients of credit shall be distributed amongst such  

recipients and such distribution shall be pro rata on the basis  

of the turnover in a State or turnover in a Union territory of  

such recipient, during the relevant period, to the aggregate of  

the turnover of all recipients and which are operational in the  

current year, during the said relevant period. 

Explanation.— For the purposes of this section,- 

(a) the “relevant period” shall be–– 

(i) if the recipients of credit have turnover in their States  

or Union territories in the financial year preceding the  

year during which credit is to be distributed, the said  

financial year; or  

(ii) if some or all recipients of the credit do not have any  

turnover in their States or Union territories in the  

financial year preceding the year during which the  

credit is to be distributed, the last quarter for which  

details of such turnover of all the recipients are  

available, previous to the month during which credit is  

to be distributed; 

(b) the expression “recipient of credit” means the supplier of  

goods or services or both having the same Permanent  

Account Number as that of the Input Service Distributor; 

(c) the term “turnover”, in relation to any registered person  

engaged in the supply of taxable goods as well as goods not  

taxable under this Act, means the value of turnover, reduced  

by the amount of any duty or tax levied under entry 84 of  

List I of the Seventh Schedule to the Constitution and entry  

51 and 54 of List II of the said Schedule. 

Manner of recovery  of credit distributed  in excess. 

  1. Where the Input Service Distributor distributes the credit in  contravention of the provisions contained in section 20 resulting in excess  distribution of credit to one or more recipients of credit, the excess credit so  distributed shall be recovered from such recipients alongwith interest, and 

1236 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

the provisions of section 73 or section 74, as the case may be, shall, mutatis  mutandis, apply for determination of amount to be recovered.  

CHAPTER – VI 

REGISTRATION 

  1. (1) Every supplier making a taxable supply of goods or services or  both in the State shall be liable to be registered under this Act if his  aggregate turnover in a financial year exceeds twenty lakh rupees: 

Provided that where such person makes taxable supplies of goods  or services or both from any of the special category States, he shall be liable  to be registered if his aggregate turnover in a financial year exceeds ten lakh  rupees.  

(2) Every person who, on the day immediately preceding the  appointed day, is registered or holds a licence under an existing law, shall  be liable to be registered under this Act with effect from the appointed day. 

(3) Where a business carried on by a taxable person registered under  this Act is transferred, whether on account of succession or otherwise, to  another person as a going concern, the transferee or the successor, as the  case may be, shall be liable to be registered with effect from the date of  such transfer or succession. 

(4) Notwithstanding anything contained in sub-sections (1) and (3),  in a case of transfer pursuant to sanction of a scheme or an arrangement for  amalgamation or, as the case may be, de-merger of two or more companies  pursuant to an order of a High Court, Tribunal or otherwise, the transferee  shall be liable to be registered, with effect from the date on which the  Registrar of Companies issues a certificate of incorporation giving effect to  such order of the High Court or Tribunal. 

Explanation.— For the purposes of this section,- 

(i) the expression “aggregate turnover” shall include all  supplies made by the taxable person, whether on his  

own account or made on behalf of all his principals; 

(ii) the supply of goods, after completion of job work, by  a registered job worker shall be treated as the supply  

of goods by the principal referred to in section 143,  

and the value of such goods shall not be included in  

the aggregate turnover of the registered job worker; 

(iii) the expression “special category States” shall mean  the States as specified in sub-clause (g) of clause (4)  

of article 279A of the Constitution. 

  1. (1) The following persons shall not be liable to registration, namely:- (a) any person engaged exclusively in the business of  supplying goods or services or both that are not liable to  

Persons liable for  registration. 

Persons not liable for  registration.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1237 

tax or wholly exempt from tax under this Act or under  

the Integrated Goods and Services Tax Act, 2017  

(Central Act 13 of 2017);  

(b) an agriculturist, to the extent of supply of produce out of  

cultivation of land.  

(2) The Government may, on the recommendations of the Council, by  notification, specify the category of persons who may be exempted from  obtaining registration under this Act. 

Compulsory  registration in  certain cases. 

  1. Notwithstanding anything contained in sub-section (1) of section 22,  the following categories of persons shall be required to be registered under  this Act,- 

(i) persons making any inter-State taxable supply;  

(ii) casual taxable persons making taxable supply; 

(iii) persons who are required to pay tax under reverse charge;  (iv) person who are required to pay tax under sub-section (5) of  section 9; 

(v) non-resident taxable persons making taxable supply;  (vi) persons who are required to deduct tax under section 51,  whether or not separately registered under this Act; 

(vii) persons who make taxable supply of goods or services or both  on behalf of other taxable persons whether as an agent or  otherwise; 

(viii) Input Service Distributor, whether or not separately registered  under this Act; 

(ix) persons who supply goods or services or both, other than  supplies specified under sub-section (5) of section 9, through  such electronic commerce operator who is required to collect tax  at source under section 52; 

(x) every electronic commerce operator; 

(xi) every person supplying online information and data base access  or retrieval services from a place outside India to a person in  India, other than a registered person; and 

(xii) such other person or class of persons, as may be notified by the  Government, on the recommendations of the Council.  

registration.25. (1) Every person who is liable to be registered under section 22 or  

Procedure for  

section 24 shall apply for registration within thirty days from the date on  which he becomes liable to registration, in such manner and subject to such  conditions, as may be prescribed: 

Provided that a casual taxable person or a non-resident taxable  

person shall apply for registration at least five days prior to the  commencement of business.

1238 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(2) A person seeking registration under this Act shall be granted a  

single registration: 

Provided that a person having multiple business verticals in the  

State may be granted a separate registration for each business vertical,  subject to such conditions, as may be prescribed. 

(3) A person, though not liable to be registered under section 22 or  

section 24 may get himself registered voluntarily, and all provisions of this  Act, as are applicable to a registered person, shall apply to such person.  

(4) A person who has obtained or is required to obtain more than one  

registration, whether in one State or Union territory or more than one State  or Union territory shall, in respect of each such registration, be treated as  distinct persons for the purposes of this Act. 

(5) Where a person who has obtained or is required to obtain  

registration in a State or Union territory in respect of an establishment, has  an establishment in another State or Union territory, then such  establishments shall be treated as establishments of distinct persons for the  purposes of this Act.  

(6) Every person shall have a Permanent Account Number issued  

under the Income-tax Act, 1961 (Central Act 43 of 1961) in order to be  eligible for grant of registration: 

Provided that a person required to deduct tax under section 51  

may have, in lieu of a Permanent Account Number, a Tax Deduction and  Collection Account Number issued under the said Act in order to be eligible  for grant of registration. 

(7) Notwithstanding anything contained in sub-section (6), a non 

resident taxable person may be granted registration under sub-section (1) on  the basis of such other documents, as may be prescribed. 

(8) Where a person who is liable to be registered under this Act fails  

to obtain registration, the proper officer may, without prejudice to any  action which may be taken under this Act or under any other law for the  time being in force, proceed to register such person in such manner, as may  be prescribed. 

(9) Notwithstanding anything contained in sub-section (1),- 

(a) any specialised agency of the United Nations Organisation  

or any Multilateral Financial Institution and Organisation  

notified under the United Nations (Privileges and  

Immunities) Act, 1947 (Central Act 46 of 1947), Consulate  

or Embassy of foreign countries; and 

(b) any other person or class of persons, as may be notified by  

the Commissioner,  

shall be granted a Unique Identity Number in such manner and for  

such purposes, including refund of taxes on the notified supplies of goods or 

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1239 services or both received by them, as may be prescribed. 

(10) The registration or the Unique Identity Number shall be granted or  

rejected after due verification in such manner and within such period, as may  be prescribed. 

(11) A certificate of registration shall be issued in such form and with  

effect from such date, as may be prescribed.  

(12) A registration or a Unique Identity Number shall be deemed  

to have been granted after the expiry of the period prescribed under  sub-section (10), if no deficiency has been communicated to the applicant  within that period. 

registration.26. (1) The grant of registration or the Unique Identity Number under the  

Deemed  

Central Goods and Services Tax Act, 2017 (Central Act 12 of 2017) shall be  deemed to be a grant of registration or the Unique Identity Number under  this Act subject to the condition that the application for registration or the  Unique Identity Number has not been rejected under this Act within the time  specified in sub-section (10) of section 25. 

(2) Notwithstanding anything contained in sub-section (10) of  

section 25, any rejection of application for registration or the Unique  Identity Number under the Central Goods and Services Tax Act, 2017  (Central Act 12 of 2017) shall be deemed to be a rejection of application for  registration under this Act. 

Special provisions  relating to casual  taxable person and  non-resident taxable  person. 

  1. (1) The certificate of registration issued to a casual taxable person or  a non-resident taxable person shall be valid for the period specified in the  application for registration or ninety days from the effective date of  registration, whichever is earlier and such person shall make taxable supplies  only after the issuance of the certificate of registration: 

Provided that the proper officer may, on sufficient cause being  shown by the said taxable person, extend the said period of ninety days by a  further period not exceeding ninety days.  

(2) A casual taxable person or a non-resident taxable person shall, at  the time of submission of application for registration under sub-section (1) of  section 25, make an advance deposit of tax in an amount equivalent to the  estimated tax liability of such person for the period for which the registration  is sought: 

Provided that where any extension of time is sought under  sub-section (1), such taxable person shall deposit an additional amount of tax  equivalent to the estimated tax liability of such person for the period for  which the extension is sought.  

(3) The amount deposited under sub-section (2) shall be credited to 

1240 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

the electronic cash ledger of such person and shall be utilised in the manner  provided under section 49. 

  1. (1) Every registered person and a person to whom a Unique Identity  Number has been assigned shall inform the proper officer of any changes in  the information furnished at the time of registration or subsequent thereto, in  such form and manner and within such period, as may be prescribed.  

(2) The proper officer may, on the basis of information furnished  under sub-section (1) or as ascertained by him, approve or reject amendments  in the registration particulars in such manner and within such period, as may  be prescribed: 

Provided that approval of the proper officer shall not be required in  respect of amendment of such particulars, as may be prescribed: 

Provided further that the proper officer shall not reject the  application for amendment in the registration particulars without giving the  person an opportunity of being heard. 

(3) Any rejection or approval of amendments under the Central Goods  and Services Tax Act, 2017 (Central Act 12 of 2017) shall be deemed to be a  rejection or approval under this Act. 

  1. (1) The proper officer may, either on his own motion or on an  application filed by the registered person or by his legal heirs, in case of death  of such person, cancel the registration, in such manner and within such period  as may be prescribed, having regard to the circumstances where,– 

(a) the business has been discontinued, transferred fully for any  reason including death of the proprietor, amalgamated with  other legal entity, demerged or otherwise disposed of; or 

(b) there is any change in the constitution of the business; or 

(c) the taxable person, other than the person registered under  sub-section (3) of section 25, is no longer liable to be  registered under section 22 or section 24. 

(2) The proper officer may cancel the registration of a person from  such date, including any retrospective date, as he may deem fit, where,– 

(a) a registered person has contravened such provisions of the  Act or the rules made thereunder, as may be prescribed; or  

(b) a person paying tax under section 10 has not furnished returns  for three consecutive tax periods; or 

(c) any registered person, other than a person specified in  clause (b), has not furnished returns for a continuous period  of six months; or 

(d) any person who has taken voluntary registration under  

Amendment of  registration. 

Cancellation of  registration.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1241 

sub-section (3) of section 25 has not commenced business  

within six months from the date of registration; or 

(e) registration has been obtained by means of fraud, wilful  

misstatement or suppression of facts: 

Provided that the proper officer shall not cancel the registration  

without giving the person an opportunity of being heard. 

(3) The cancellation of registration under this section shall not affect  the liability of the person to pay tax and other dues under this Act or to  discharge any obligation under this Act or the rules made thereunder for any  period prior to the date of cancellation whether or not such tax and other  dues are determined before or after the date of cancellation. 

(4) The cancellation of registration under the Central Goods and  Services Tax Act, 2017 (Central Act 12 of 2017) shall be deemed to be a  cancellation of registration under this Act. 

(5) Every registered person whose registration is cancelled shall pay  an amount, by way of debit in the electronic credit ledger or electronic cash  ledger, equivalent to the credit of input tax in respect of inputs held in stock  and inputs contained in semi-finished or finished goods held in stock or  capital goods or plant and machinery on the day immediately preceding the  date of such cancellation or the output tax payable on such goods, whichever  is higher, calculated in such manner, as may be prescribed:  

Provided that in case of capital goods or plant and machinery, the  

taxable person shall pay an amount equal to the input tax credit taken on the  said capital goods or plant and machinery, reduced by such percentage points  as may be prescribed or the tax on the transaction value of such capital goods  or plant and machinery under section 15, whichever is higher.  

(6) The amount payable under sub-section (5) shall be calculated in  such manner, as may be prescribed. 

Revocation of  cancellation of  registration. 

  1. (1) Subject to such conditions, as may be prescribed, any registered  person, whose registration is cancelled by the proper officer on his own  motion, may apply to such officer for revocation of cancellation of the  registration in the prescribed manner within thirty days from the date of  service of the cancellation order. 

(2) The proper officer may, in such manner and within such period as  may be prescribed, by order, either revoke cancellation of the registration or  reject the application: 

Provided that the application for revocation of cancellation of  registration shall not be rejected unless the applicant has been given an  opportunity of being heard. 

(3) The revocation of cancellation of registration under the Central  Goods and Services Tax Act, 2017 (Central Act 12 of 2017) shall be deemed 

1242 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) to be a revocation of cancellation of registration under this Act. 

CHAPTER- VII 

TAX INVOICE, CREDIT AND DEBIT NOTES 

  1. (1) A registered person supplying taxable goods shall, before or at  the time of,- 

(a) removal of goods for supply to the recipient, where the  supply involves movement of goods; or 

(b) delivery of goods or making available thereof to the  recipient, in any other case, 

issue a tax invoice showing the description, quantity and value of goods,  the tax charged thereon and such other particulars, as may be prescribed: 

Provided that the Government may, on the recommendations of  the Council, by notification, specify the categories of goods or supplies in  respect of which a tax invoice shall be issued, within such time and in  such manner, as may be prescribed. 

(2) A registered person supplying taxable services shall, before or  after the provision of service but within a prescribed period, issue a tax  invoice, showing the description, value, tax charged thereon and such  other particulars, as may be prescribed:  

Provided that the Government may, on the recommendations of  the Council, by notification and subject to such conditions, as may be  mentioned therein, specify the categories of services in respect of which– 

(a) any other document issued in relation to the supply shall  be deemed to be a tax invoice; or 

(b) tax invoice may not be issued. 

(3) Notwithstanding anything contained in sub-sections (1) and (2)- 

(a) a registered person may, within one month from the date  of issuance of certificate of registration and in such  manner as may be prescribed, issue a revised invoice  against the invoice already issued during the period  beginning with the effective date of registration till the  date of issuance of certificate of registration to him; 

(b) a registered person may not issue a tax invoice if the value  of the goods or services or both supplied is less than two  hundred rupees subject to such conditions and in such  

Tax invoice.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1243 manner, as may be prescribed; 

(c) a registered person supplying exempted goods or services or  

both or paying tax under the provisions of section 10 shall  

issue, instead of a tax invoice, a bill of supply containing  

such particulars and in such manner, as may be prescribed: 

Provided that the registered person may not issue a bill  

of supply if the value of the goods or services or both  

supplied is less than two hundred rupees subject to such  

conditions and in such manner, as may be prescribed; 

(d) a registered person shall, on receipt of advance payment  

with respect to any supply of goods or services or both, issue  

a receipt voucher or any other document, containing such  

particulars as may be prescribed, evidencing receipt of such  

payment;  

(e) where, on receipt of advance payment with respect to any  

supply of goods or services or both the registered person  

issues a receipt voucher, but subsequently no supply is made  

and no tax invoice is issued in pursuance thereof, the said  

registered person may issue to the person who had made the  

payment, a refund voucher against such payment; 

(f) a registered person who is liable to pay tax under sub-section  

(3) or sub-section (4) of section 9 shall issue an invoice in  

respect of goods or services or both received by him from  

the supplier who is not registered on the date of receipt of  

goods or services or both; 

(g) a registered person who is liable to pay tax under sub-section  

(3) or sub-section (4) of section 9 shall issue a payment  

voucher at the time of making payment to the supplier. 

(4) In case of continuous supply of goods, where successive  statements of accounts or successive payments are involved, the invoice shall  be issued before or at the time each such statement is issued or, as the case  may be, each such payment is received.  

(5) Subject to the provisions of clause (d) of sub-section (3), in case  of continuous supply of services,- 

(a) where the due date of payment is ascertainable from the  

contract, the invoice shall be issued on or before the due date  

of payment;  

(b) where the due date of payment is not ascertainable from the  

contract, the invoice shall be issued before or at the time 

1244 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) when the supplier of service receives the payment; 

(c) where the payment is linked to the completion of an event,  

the invoice shall be issued on or before the date of  

completion of that event. 

(6) In a case where the supply of services ceases under a contract  before the completion of the supply, the invoice shall be issued at the time  when the supply ceases and such invoice shall be issued to the extent of the  supply made before such cessation. 

(7) Notwithstanding anything contained in sub-section (1), where the  goods being sent or taken on approval for sale or return are removed before  the supply takes place, the invoice shall be issued before or at the time of  supply or six months from the date of removal, whichever is earlier. 

Explanation.– For the purposes of this section, the expression  

“tax invoice” shall include any revised invoice  

issued by the supplier in respect of a supply made  

earlier. 

  1. (1) A person who is not a registered person shall not collect in  respect of any supply of goods or services or both any amount by way of tax  under this Act. 

(2) No registered person shall collect tax except in accordance with  the provisions of this Act or the rules made thereunder. 

  1. Notwithstanding anything contained in this Act or any other law for  the time being in force, where any supply is made for a consideration, every  person who is liable to pay tax for such supply shall prominently indicate in  all documents relating to assessment, tax invoice and other like documents,  the amount of tax which shall form part of the price at which such supply is  made. 
  2. (1) Where a tax invoice has been issued for supply of any goods or  services or both and the taxable value or tax charged in that tax invoice is  found to exceed the taxable value or tax payable in respect of such supply,  or where the goods supplied are returned by the recipient, or where goods or  services or both supplied are found to be deficient, the registered person,  who has supplied such goods or services or both, may issue to the recipient  a credit note containing such particulars, as may be prescribed.  

(2) Any registered person who issues a credit note in relation to a  supply of goods or services or both shall declare the details of such credit  note in the return for the month during which such credit note has been  issued but not later than September following the end of the financial year  in which such supply was made, or the date of furnishing of the relevant  annual return, whichever is earlier, and the tax liability shall be adjusted in  such manner, as may be prescribed: 

Provided that no reduction in output tax liability of the supplier  

Prohibition of  

unauthorised  

collection of tax. 

Amount of tax to be  indicated in tax  invoice and other  documents. 

Credit and debit  notes.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1245 

shall be permitted, if the incidence of tax and interest on such supply has  been passed on to any other person. 

(3) Where a tax invoice has been issued for supply of any goods or  

services or both and the taxable value or tax charged in that tax invoice is  found to be less than the taxable value or tax payable in respect of such  supply, the registered person, who has supplied such goods or services or  both, shall issue to the recipient a debit note containing such particulars, as  may be prescribed. 

(4) Any registered person who issues a debit note in relation to a  

supply of goods or services or both shall declare the details of such debit  note in the return for the month during which such debit note has been issued  and the tax liability shall be adjusted in such manner, as may be prescribed.  Explanation.— For the purposes of this Act, the expression “debit  

note” shall include a supplementary invoice. 

CHAPTER VIII 

ACCOUNTS AND RECORDS 

records.35. (1) Every registered person shall keep and maintain, at his principal  

Accounts and other  

place of business, as mentioned in the certificate of registration, a true and  correct account of- 

(a) production or manufacture of goods;  

(b) inward and outward supply of goods or services or both;  

(c) stock of goods;  

(d) input tax credit availed;  

(e) output tax payable and paid; and  

(f) such other particulars, as may be prescribed:  

Provided that where more than one place of business is specified  

in the certificate of registration, the accounts relating to each place of  business shall be kept at such places of business: 

Provided further that the registered person may keep and maintain  

such accounts and other particulars in electronic form in such manner, as  may be prescribed. 

(2) Every owner or operator of warehouse or godown or any other  

place used for storage of goods and every transporter, irrespective of whether  he is a registered person or not, shall maintain records of the consigner,  consignee and other relevant details of the goods in such manner, as may be  prescribed. 

(3) The Commissioner may notify a class of taxable persons to  

maintain additional accounts or documents for such purpose, as may be 

1246 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) specified therein. 

(4) Where the Commissioner considers that any class of taxable  persons is not in a position to keep and maintain accounts in accordance  with the provisions of this section, he may, for reasons to be recorded in  writing, permit such class of taxable persons to maintain accounts in such  manner, as may be prescribed. 

(5) Every registered person whose turnover during a financial year  exceeds the prescribed limit shall get his accounts audited by a chartered  accountant or a cost accountant and shall submit a copy of the audited  annual accounts, the reconciliation statement under sub-section (2) of  section 44 and such other documents in such form and manner, as may be  prescribed.  

(6) Subject to the provisions of clause (h) of sub-section (5) of  section 17, where the registered person fails to account for the goods or  services or both in accordance with the provisions of sub-section (1), the  proper officer shall determine the amount of tax payable on the goods or  services or both that are not accounted for, as if such goods or services or  both had been supplied by such person and the provisions of section 73 or  section 74, as the case may be, shall, mutatis mutandis, apply for  determination of such tax. 

  1. Every registered person required to keep and maintain books of  account or other records in accordance with the provisions of sub-section (1)  of section 35 shall retain them until the expiry of seventy two months from  the due date of furnishing of annual return for the year pertaining to such  accounts and records: 

Provided that a registered person, who is a party to an appeal or  revision or any other proceedings before any Appellate Authority or  Revisional Authority or Appellate Tribunal or court, whether filed by him or  by the Commissioner, or is under investigation for an offence under Chapter  XIX, shall retain the books of account and other records pertaining to the  subject matter of such appeal or revision or proceedings or investigation for  a period of one year after final disposal of such appeal or revision or  proceedings or investigation, or for the period specified above, whichever is  later. 

CHAPTER- IX 

RETURNS 

  1. (1) Every registered person, other than an Input Service Distributor, a  non-resident taxable person and a person paying tax under the provisions of  section 10 or section 51 or section 52, shall furnish, electronically, in such  form and manner, as may be prescribed, the details of outward supplies of  goods or services or both effected during a tax period on or before the tenth  day of the month succeeding the said tax period and such details shall be  communicated to the recipient of the said supplies within such time and in  

Period of retention  of accounts. 

Furnishing details of  outward supplies.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1247 such manner as may be prescribed:  

Provided that the registered person shall not be allowed to furnish  

the details of outward supplies during the period from the eleventh day to the  fifteenth day of the month succeeding the tax period: 

Provided further that the Commissioner may, for reasons to be  

recorded in writing, by notification, extend the time limit for furnishing such  details for such class of taxable persons as may be specified therein: 

Provided also that any extension of time limit notified by the  

Commissioner of central tax shall be deemed to be notified by the  Commissioner. 

(2) Every registered person who has been communicated the details  

under sub-section (3) of section 38 or the details pertaining to inward  supplies of Input Service Distributor under sub-section (4) of section 38,  shall either accept or reject the details so communicated, on or before the  seventeenth day, but not before the fifteenth day, of the month succeeding  the tax period and the details furnished by him under sub-section (1) shall  stand amended accordingly.  

(3) Any registered person, who has furnished the details under sub 

section (1) for any tax period and which have remained unmatched under  section 42 or section 43, shall, upon discovery of any error or omission  therein, rectify such error or omission in such manner as may be prescribed,  and shall pay the tax and interest, if any, in case there is a short payment of  tax on account of such error or omission, in the return to be furnished for  such tax period: 

Provided that no rectification of error or omission in respect of the  

details furnished under sub-section (1) shall be allowed after furnishing of  the return under section 39 for the month of September following the end of  the financial year to which such details pertain, or furnishing of the relevant  annual return, whichever is earlier.  

Explanation.– For the purposes of this Chapter, the expression  

“details of outward supplies” shall include details  

of invoices, debit notes, credit notes and revised  

invoices issued in relation to outward supplies  

made during any tax period. 

of inward supplies.38. (1) Every registered person, other than an Input Service Distributor or  

Furnishing details  

a non-resident taxable person or a person paying tax under the provisions of  section 10 or section 51 or section 52, shall verify, validate, modify or delete,  if required, the details relating to outward supplies and credit or debit notes  communicated under sub-section (1) of section 37 to prepare the details of  his inward supplies and credit or debit notes and may include therein, the  details of inward supplies and credit or debit notes received by him in respect  of such supplies that have not been declared by the supplier under sub section (1) of section 37. 

1248 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(2) Every registered person, other than an Input Service Distributor  or a non-resident taxable person or a person paying tax under the provisions  of section 10 or section 51 or section 52, shall furnish, electronically, the  details of inward supplies of taxable goods or services or both, including  inward supplies of goods or services or both on which the tax is payable  on reverse charge basis under this Act and inward supplies of goods or  services or both taxable under the Integrated Goods and Services Tax  Act, 2017 (Central Act 13 of 2017) or on which integrated goods and  services tax is payable under section 3 of the Customs Tariff Act, 1975 (Central Act 51 of 1975) and credit or debit notes received in respect of  such supplies during a tax period after the tenth day but on or before the  fifteenth day of the month succeeding the tax period in such form and  manner, as may be prescribed: 

Provided that the Commissioner may, for reasons to be  

recorded in writing, by notification, extend the time limit for furnishing  such details for such class of taxable persons, as may be specified  therein: 

Provided further that any extension of time limit notified by  

the Commissioner of central tax shall be deemed to be notified by the  Commissioner. 

(3) The details of supplies modified, deleted or included by the  recipient and furnished under sub-section (2) shall be communicated to  the supplier concerned in such manner and within such time, as may be  prescribed. 

(4) The details of supplies modified, deleted or included by the  recipient in the return furnished under sub-section (2) or sub-section (4)  of section 39 shall be communicated to the supplier concerned in such  manner and within such time, as may be prescribed. 

(5) Any registered person, who has furnished the details under  sub-section (2) for any tax period and which have remained unmatched  under section 42 or section 43, shall, upon discovery of any error or  omission therein, rectify such error or omission in the tax period during  which such error or omission is noticed in such manner, as may be  prescribed, and shall pay the tax and interest, if any, in case there is a  short payment of tax on account of such error or omission, in the return  to be furnished for such tax period: 

Provided that no rectification of error or omission in respect of  

the details furnished under sub-section (2) shall be allowed after  furnishing of the return under section 39 for the month of September  following the end of the financial year to which such details pertain, or 

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1249 furnishing of the relevant annual return, whichever is earlier. 

Furnishing of  returns. 

  1. (1) Every registered person, other than an Input Service Distributor or  a non-resident taxable person or a person paying tax under the provisions of  section 10 or section 51 or section 52 shall, for every calendar month or part  thereof, furnish, in such form and manner, as may be prescribed, a return,  electronically, of inward and outward supplies of goods or services or both,  input tax credit availed, tax payable, tax paid and such other particulars, as  may be prescribed on or before the twentieth day of the month succeeding  such calendar month or part thereof.  

(2) A registered person paying tax under the provisions of section 10  shall, for each quarter or part thereof, furnish, in such form and manner as  may be prescribed, a return, electronically, of turnover in the State, inward  supplies of goods or services or both, tax payable and tax paid within  eighteen days after the end of such quarter. 

(3) Every registered person required to deduct tax at source under the  provisions of section 51 shall furnish, in such form and manner as may be  prescribed, a return, electronically, for the month in which such deductions  have been made within ten days after the end of such month. 

(4) Every taxable person registered as an Input Service Distributor  shall, for every calendar month or part thereof, furnish, in such form and  manner as may be prescribed, a return, electronically, within thirteen days  after the end of such month. 

(5) Every registered non-resident taxable person shall, for every  calendar month or part thereof, furnish, in such form and manner as may be  prescribed, a return, electronically, within twenty days after the end of a  calendar month or within seven days after the last day of the period of  registration specified under sub-section (1) of section 27, whichever is  earlier.  

(6) The Commissioner may, for reasons to be recorded in writing, by  notification, extend the time limit for furnishing the returns under this  section for such class of registered persons as may be specified therein:  

Provided that any extension of time limit notified by the Commissioner  of central tax shall be deemed to be notified by the Commissioner.  (7) Every registered person, who is required to furnish a return under  sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall  pay to the Government the tax due as per such return not later than the last  date on which he is required to furnish such return.  

(8) Every registered person who is required to furnish a return under  sub-section (1) or sub-section (2) shall furnish a return for every tax period  whether or not any supplies of goods or services or both have been made  during such tax period. 

(9) Subject to the provisions of sections 37 and 38, if any registered  person after furnishing a return under sub-section (1) or sub-section (2)  sub-section (3) or sub-section (4) or sub-section (5) discovers any omission 

1250 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

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 return to be furnished for the  month or quarter during which such omission or incorrect particulars are  noticed, subject to payment of interest under this Act:  

Provided that no such rectification of any omission or incorrect  

particulars shall be allowed after the due date for furnishing of return for  the month of September or second quarter following the end of the  financial year, or the actual date of furnishing of relevant annual return,  whichever is earlier.  

(10) A registered person shall not be allowed to furnish a return for  

a tax period if the return for any of the previous tax periods has not been  furnished by him. 

  1. Every registered person who has made outward supplies in the  period between the date on which he became liable to registration till the  date on which registration has been granted shall declare the same in the  first return furnished by him after grant of registration. 
  2. (1) Every registered person shall, subject to such conditions and  restrictions as may be prescribed, be entitled to take the credit of eligible  input tax, as self-assessed, in his return and such amount shall be credited  on a provisional basis to his electronic credit ledger. 

(2) The credit referred to in sub-section (1) shall be utilised only  for payment of self-assessed output tax as per the return referred to in the  said sub-section. 

  1. (1) The details of every inward supply furnished by a registered  person (hereafter in this section referred to as the “recipient”) for a tax  period shall, in such manner and within such time, as may be prescribed,  be matched–– 

(a) with the corresponding details of outward supply  furnished by the corresponding registered person  (hereafter in this section referred to as the “supplier”) in  his valid return for the same tax period or any preceding  tax period;  

(b) with the integrated goods and services tax paid under  section 3 of the Customs Tariff Act, 1975 (Central Act 51  of 1975) in respect of goods imported by him; and  

(c) for duplication of claims of input tax credit.  

(2) The claim of input tax credit in respect of invoices or debit  notes relating to inward supply that match with the details  of corresponding outward supply or with the integrated goods  and services tax paid under section 3 of the Customs Tariff Act, 1975  (Central Act 51 of 1975) in respect of goods imported by him shall be  finally accepted and such acceptance shall be communicated, in such  

First Return. 

Claim of input tax  credit and provisional  acceptance thereof. 

Matching, reversal and  reclaim of input tax  credit.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1251 

manner as may be prescribed, to the recipient. 

(3) Where the input tax credit claimed by a recipient in respect of an  

inward supply is in excess of the tax declared by the supplier for the same  supply or the outward supply is not declared by the supplier in his valid  returns, the discrepancy shall be communicated to both such persons in such  manner, as may be prescribed.  

(4) The duplication of claims of input tax credit shall be  

communicated to the recipient in such manner, as may be prescribed.  

(5) The amount in respect of which any discrepancy is communicated  

under sub-section (3) and which is not rectified by the supplier in his valid  return for the month in which discrepancy is communicated shall be added to  the output tax liability of the recipient, in such manner as may be prescribed,  in his return for the month succeeding the month in which the discrepancy is  communicated. 

(6) The amount claimed as input tax credit that is found to be in  

excess on account of duplication of claims shall be added to the output tax  liability of the recipient in his return for the month in which the duplication  is communicated. 

(7) The recipient shall be eligible to reduce, from his output tax  

liability, the amount added under sub-section (5), if the supplier declares the  details of the invoice or debit note in his valid return within the time  specified in sub-section (9) of section 39. 

(8) A recipient in whose output tax liability any amount has been  

added under sub-section (5) or sub-section (6), shall be liable to pay interest  at the rate specified under sub-section (1) of section 50 on the amount so  added from the date of availing of credit till the corresponding additions are  made under the said sub-sections. 

(9) Where any reduction in output tax liability is accepted under  

sub-section (7), the interest paid under sub-section (8) shall be refunded to  the recipient by crediting the amount in the corresponding head of his  electronic cash ledger in such manner, as may be prescribed: 

Provided that the amount of interest to be credited in any case  

shall not exceed the amount of interest paid by the supplier. 

(10) The amount reduced from the output tax liability in contravention  

of the provisions of sub-section (7) shall be added to the output tax liability  of the recipient in his return for the month in which such contravention takes  place and such recipient shall be liable to pay interest on the amount so  added at the rate specified in sub-section (3) of section 50. 

Matching, reversal  and reclaim of  reduction in output  tax liability. 

  1. (1) The details of every credit note relating to outward supply  furnished by a registered person (hereafter in this section referred to as the  “supplier”) for a tax period shall, in such manner and within such time as may be prescribed, be matched- 

(a) with the corresponding reduction in the claim for input tax  credit by the corresponding registered person (hereafter in  this section referred to as the “recipient”) in his valid return 

1252 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

for the same tax period or any subsequent tax period; and  

(b) for duplication of claims for reduction in output tax liability. 

(2) The claim for reduction in output tax liability by the supplier that  matches with the corresponding reduction in the claim for input tax credit by  the recipient shall be finally accepted and communicated, in such manner as  may be prescribed, to the supplier. 

(3) Where the reduction of output tax liability in respect of outward  supplies exceeds the corresponding reduction in the claim for input tax credit or  the corresponding credit note is not declared by the recipient in his valid  returns, the discrepancy shall be communicated to both such persons in such  manner, as may be prescribed. 

(4) The duplication of claims for reduction in output tax liability shall be  communicated to the supplier in such manner, as may be prescribed. 

(5) The amount in respect of which any discrepancy is communicated  under sub-section (3) and which is not rectified by the recipient in his valid  return for the month in which discrepancy is communicated shall be added to  the output tax liability of the supplier, in such manner, as may be prescribed, in  his return for the month succeeding the month in which the discrepancy is  communicated. 

(6) The amount in respect of any reduction in output tax liability that is  found to be on account of duplication of claims shall be added to the output tax  liability of the supplier in his return for the month in which such duplication is  communicated. 

(7) The supplier shall be eligible to reduce, from his output tax liability,  the amount added under sub-section (5) if the recipient declares the details of  the credit note in his valid return within the time specified in sub-section (9) of  section 39.  

(8) A supplier in whose output tax liability any amount has been added  under sub-section (5) or sub-section (6), shall be liable to pay interest at the rate  specified under sub-section (1) of section 50 in respect of the amount so added  from the date of such claim for reduction in the output tax liability till the  corresponding additions are made under the said sub-sections. 

(9) Where any reduction in output tax liability is accepted under sub section (7), the interest paid under sub-section (8) shall be refunded to the  supplier by crediting the amount in the corresponding head of his electronic  cash ledger in such manner, as may be prescribed: 

Provided that the amount of interest to be credited in any case shall  

not exceed the amount of interest paid by the recipient. 

(10) The amount reduced from output tax liability in contravention of the  provisions of sub-section (7) shall be added to the output tax liability of the  supplier in his return for the month in which such contravention takes place and  such supplier shall be liable to pay interest on the amount so added at the rate 

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1253 

specified in sub-section (3) of section 50. 

Annual return. 44. (1) Every registered person, other than an Input Service Distributor, a  person paying tax under section 51 or section 52, a casual taxable person and  a non-resident taxable person, shall furnish an annual return for every  financial year electronically in such form and manner, as may be prescribed  on or before the thirty-first day of December following the end of such  financial year.  

(2) Every registered person who is required to get his accounts audited  

in accordance with the provisions of sub-section (5) of section 35 shall  furnish, electronically, the annual return under sub-section (1) alongwith a  copy of the audited annual accounts and a reconciliation statement,  reconciling the value of supplies declared in the return furnished for the  financial year with the audited annual financial statement, and such other  particulars, as may be prescribed. 

Final return. 45. Every registered person who is required to furnish a return under sub section (1) of section 39 and whose registration has been cancelled shall  furnish a final return within three months of the date of cancellation or date  of order of cancellation, whichever is later, in such form and manner, as may  be prescribed. 

Notice to return  

defaulters.46. Where a registered person fails to furnish a return under section 39 or  

section 44 or section 45, a notice shall be issued requiring him to furnish  such return within fifteen days in such form and manner, as may be  prescribed.  

Levy of late fee. 47. (1) Any registered person who fails to furnish the details of outward  or inward supplies required under section 37 or section 38 or returns required  under section 39 or section 45 by the due date shall pay a late fee of one  hundred rupees for every day during which such failure continues subject to  a maximum amount of five thousand rupees. 

(2) Any registered person who fails to furnish the return required  

under section 44 by the due date shall be liable to pay a late fee of one  hundred rupees for every day during which such failure continues subject to  a maximum of an amount calculated at a quarter percent of his turnover in  the State.  

Goods and services  

tax practitioners.48. (1) The manner of approval of goods and services tax practitioners,  

their eligibility conditions, duties and obligations, manner of removal and  other conditions relevant for their functioning shall be such, as may be  prescribed. 

(2) A registered person may authorise an approved goods and services  

tax practitioner to furnish the details of outward supplies under section 37,  the details of inward supplies under section 38 and the return under section  39 or section 44 or section 45 in such manner, as may be prescribed. 

(3) Notwithstanding anything contained in sub-section (2), the  

responsibility for correctness of any particulars furnished in the return or  other details filed by the goods and services tax practitioners shall continue  to rest with the registered person on whose behalf such return and details are 

1254 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) furnished.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1253 

CHAPTER-X 

PAYMENT OF TAX 

  1. (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, 2017 (Central Act 13 of 2017) 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 central tax shall not be utilised towards payment of State  tax; and 

(e) the State 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. 

Payment of tax,  interest, penalty and  other amounts.

1254 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(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. 

Interest on delayed  

payment of tax.50. (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 percent, 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 percent, as may be notified by  the Government on the recommendations of the Council.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1255 

  1. (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 percent 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. 

Tax deduction at  source.

1256 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(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. 

Collection of tax at  

source.52. (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 percent, 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.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1257 

(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  sub-section (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 alongwith 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 

1258 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(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. 

Transfer of input  tax credit. 

  1. On utilisation of input tax credit availed under this Act for payment  of tax dues under the Integrated Goods and Services Tax Act, 2017  (Central Act 13 of 2017) 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. 

CHAPTER XI 

REFUNDS 

Refund of tax. 54. (1) Any person claiming refund of any tax and interest, if any, paid on  such tax or any other amount paid by him, may make an application before the  expiry of two years from the relevant date in such form and manner, as may  be prescribed:  

Provided that a registered person, claiming refund of any balance  

in the electronic cash ledger in accordance with the provisions of  sub-section (6) of section 49, may claim such refund in the return furnished  under section 39 in such manner, as may be prescribed. 

(2) A specialized agency of the United Nations Organization or any  

Multilateral Financial Institution and Organization notified under the United  Nations (Privileges and Immunities) Act, 1947 (Central Act 46 of 1947),  Consulate or Embassy of foreign countries or any other person or class of  persons, as notified under section 55, entitled to a refund of tax paid by it on  inward supplies of goods or services or both, may make an application for  such refund, in such form and manner, as may be prescribed, before the expiry  of six months from the last day of the quarter in which such supply was  received.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1259 

(3) Subject to the provisions of sub-section (10), a registered person may  claim refund of any unutilised input tax credit at the end of any tax period:  Provided that no refund of unutilised input tax credit shall be allowed  

in cases other than- 

(i) zero-rated supplies made without payment of tax; 

(ii) where the credit has accumulated on account of rate of tax on  

inputs being higher than the rate of tax on output supplies (other  

than nil rated or fully exempt supplies), except supplies of goods  

or services or both as may be notified by the Government on the  

recommendations of the Council:  

Provided further that no refund of unutilised input tax credit shall be  

allowed in cases where the goods exported out of India are subjected to export  duty: 

Provided further that no refund of input tax credit shall be allowed, if  

the supplier of goods or services or both claims refund of the integrated tax paid  on such supplies.  

(4) The application shall be accompanied by— 

(a) such documentary evidence as may be prescribed to establish  

that a refund is due to the applicant; and  

(b) such documentary or other evidence (including the documents  

referred to in section 33) as the applicant may furnish to  

establish that the amount of tax and interest, if any, paid on such  

tax or any other amount paid in relation to which such refund is  

claimed was collected from, or paid by, him and the incidence  

of such tax and interest had not been passed on to any other  

person: 

Provided that where the amount claimed as refund is less than two  

lakh rupees, it shall not be necessary for the applicant to furnish any  documentary and other evidences but he may file a declaration, based on the  documentary or other evidences available with him, certifying that the incidence  of such tax and interest had not been passed on to any other person.  

(5) If, on receipt of any such application, the proper officer is satisfied  that the whole or part of the amount claimed as refund is refundable, he may  make an order accordingly and the amount so determined shall be credited to the  Fund referred to in section 57. 

(6) Notwithstanding anything contained in sub-section (5), the proper  officer may, in the case of any claim for refund on account of zero-rated supply  of goods or services or both made by registered persons, other than such category  of registered persons as may be notified by the Government on the  recommendations of the Council, refund on a provisional basis, ninety percent  of the total amount so claimed, excluding the amount of input tax credit  provisionally accepted, in such manner and subject to such conditions,  limitations and safeguards, as may be prescribed and thereafter make an order  under sub-section (5) for final settlement of the refund claim after due  verification of documents furnished by the applicant.

1260 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(7) The proper officer shall issue the order under sub-section (5) within  sixty days from the date of receipt of application complete in all respects. 

(8) Notwithstanding anything contained in sub-section (5), the refundable  amount shall, instead of being credited to the Fund, be paid to the applicant, if  such amount is relatable to – 

(a) refund of tax paid on zero-rated supplies of goods or services or  

both or on inputs or input services used in making such zero 

rated supplies;  

(b) refund of unutilised input tax credit under sub-section (3);  

(c) refund of tax paid on a supply which is not provided, either  

wholly or partially, and for which invoice has not been issued, or  

where a refund voucher has been issued; 

(d) refund of tax in pursuance of section 77;  

(e) the tax and interest, if any, or any other amount paid by the  

applicant, if he had not passed on the incidence of such tax and  

interest to any other person; or 

(f) the tax or interest borne by such other class of applicants as the  

Government may, on the recommendations of the Council, by  

notification, specify.  

(9) Notwithstanding anything to the contrary contained in any judgment,  decree, order or direction of the Appellate Tribunal or any court or in any other  provisions of this Act or the rules made thereunder or in any other law for the  time being in force, no refund shall be made except in accordance with the  provisions of sub-section (8). 

(10) Where any refund is due under sub-section (3) to a registered person  who has defaulted in furnishing any return or who is required to pay any tax,  interest or penalty, which has not been stayed by any court, Tribunal or Appellate  Authority by the specified date, the proper officer may- 

(a) withhold payment of refund due until the said person has  

furnished the return or paid the tax, interest or penalty, as the  

case may be;  

(b) deduct from the refund due, any tax, interest, penalty, fee or any  

other amount which the taxable person is liable to pay but which  

remains unpaid under this Act or under the existing law. 

Explanation.— For the purposes of this sub-section, the expression  

“specified date” shall mean the last date for filing  

an appeal under this Act.  

(11) Where an order giving rise to a refund is the subject matter of an appeal  or further proceedings or where any other proceedings under this Act is pending  and the Commissioner is of the opinion that grant of such refund is likely to  adversely affect the revenue in the said appeal or other proceedings on account  of malfeasance or fraud committed, he may, after giving the taxable person an  opportunity of being heard, withhold the refund till such time as he may  determine.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1261 

(12) Where a refund is withheld under sub-section (11), the taxable  

person shall, notwithstanding anything contained in section 56, be entitled to  interest at such rate not exceeding six percent as may be notified on the  recommendations of the Council, if as a result of the appeal or further  proceedings he becomes entitled to refund. 

(13) Notwithstanding anything to the contrary contained in this section,  

the amount of advance tax deposited by a casual taxable person or a  non-resident taxable person under sub-section (2) of section 27, shall not be  refunded unless such person has, in respect of the entire period for which the  certificate of registration granted to him had remained in force, furnished all  the returns required under section 39. 

(14) Notwithstanding anything contained in this section, no refund under  

sub-section (5) or sub-section (6) shall be paid to an applicant, if the amount is  less than one thousand rupees.  

Explanation.— For the purposes of this section,- 

(1) “refund” includes refund of tax paid on zero-rated supplies of  

goods or services or both or on inputs or input services used in  

making such zero-rated supplies, or refund of tax on the supply  

of goods regarded as deemed exports, or refund of unutilised  

input tax credit as provided under sub-section (3).  

(2) “relevant date” means – 

(a) in the case of goods exported out of India where a refund  

of tax paid is available in respect of goods themselves or,  

as the case may be, the inputs or input services used in such  

goods,- 

(i) if the goods are exported by sea or air, the date on  

which the ship or the aircraft in which such goods are  

loaded, leaves India; or 

(ii) if the goods are exported by land, the date on which  

such goods pass the frontier; or 

(iii) if the goods are exported by post, the date of despatch  

of goods by the Post Office concerned to a place  

outside India; 

(b) in the case of supply of goods regarded as deemed exports  

where a refund of tax paid is available in respect of the  

goods, the date on which the return relating to such deemed  

exports is furnished; 

(c) in the case of services exported out of India where a refund  

of tax paid is available in respect of services themselves or,  

as the case may be, the inputs or input services used in such  

services, the date of–– 

(i) receipt of payment in convertible foreign exchange,  

where the supply of services had been completed prior  

to the receipt of such payment; or 

(ii) issue of invoice, where payment for the services had  

been received in advance prior to the date of issue of  

the invoice;

1262 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(d) in case where the tax becomes refundable as a consequence  

of judgment, decree, order or direction of the Appellate  

Authority, Appellate Tribunal or any court, the date of  

communication of such judgment, decree, order or direction; 

(e) in the case of refund of unutilised input tax credit under sub 

section (3), the end of the financial year in which such claim  

for refund arises;  

(f) in the case where tax is paid provisionally under this Act or  

the rules made thereunder, the date of adjustment of tax after  

the final assessment thereof; 

(g) in the case of a person, other than the supplier, the date of  

receipt of goods or services or both by such person; and 

(h) in any other case, the date of payment of tax. 

Refund in certain  

cases.55. The Government may, on the recommendations of the Council, by  notification, specify any specialized agency of the United Nations Organization  or any Multilateral Financial Institution and Organization notified under the  United Nations (Privileges and Immunities) Act, 1947 (Central Act 46 of 1947),  Consulate or Embassy of foreign countries and any other person or class of  persons as may be specified in this behalf, who shall, subject to such conditions  and restrictions, as may be prescribed, be entitled to claim a refund of taxes paid  on the notified supplies of goods or services or both received by them. 

Interest on  

delayed refunds.56. If any tax ordered to be refunded under sub-section (5) of section 54 to any  applicant is not refunded within sixty days from the date of receipt of application  under sub-section (1) of that section, interest at such rate not exceeding six  percent as may be specified in the notification issued by the Government on the  recommendations of the Council shall be payable in respect of such refund from  the date immediately after the expiry of sixty days from the date of receipt of  application under the said sub-section till the date of refund of such tax: 

Provided that where any claim of refund arises from an order passed by an  adjudicating authority or Appellate Authority or Appellate Tribunal or court  which has attained finality and the same is not refunded within sixty days from  the date of receipt of application filed consequent to such order, interest at such  rate not exceeding nine percent as may be notified by the Government on the  recommendations of the Council shall be payable in respect of such refund from  the date immediately after the expiry of sixty days from the date of receipt of  application till the date of refund. 

Explanation.— For the purposes of this section, where any order of refund is  made by an Appellate Authority, Appellate Tribunal or any  

court against an order of the proper officer under sub-section  

(5) of section 54, the order passed by the Appellate Authority,  

Appellate Tribunal or by the court shall be deemed to be an  

order passed under the said sub-section (5).

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1263 

  1. The Government shall constitute a Fund, to be called the Consumer  Welfare Fund and there shall be credited to the Fund,–– 

(a) the amount referred to in sub-section (5) of section 54;  

(b) any income from investment of the amount credited to the Fund;  and  

(c) such other monies received by it,  

in such manner, as may be prescribed. 

  1. (1) All sums credited to the Fund shall be utilised by the Government  for the welfare of the consumers in such manner, as may be prescribed.  

(2) The Government or the authority specified by it shall maintain  proper and separate account and other relevant records in relation to the Fund  and prepare an annual statement of accounts in such form, as may be  prescribed in consultation with the Comptroller and Auditor General of India. 

CHAPTER– XII 

ASSESSMENT 

  1. Every registered person shall self-assess the taxes payable under this Act  and furnish a return for each tax period as specified under section 39. 
  2. (1) Subject to the provisions of sub-section (2), where the taxable  person is unable to determine the value of goods or services or both or  determine the rate of tax applicable thereto, he may request the proper officer  in writing giving reasons for payment of tax on a provisional basis and the  proper officer shall pass an order, within a period not later than ninety days  from the date of receipt of such request, allowing payment of tax on  provisional basis at such rate or on such value as may be specified by him. 

(2) The payment of tax on provisional basis may be allowed, if the  taxable person executes a bond in such form, as may be prescribed, and with  such surety or security as the proper officer may deem fit, binding the taxable  person for payment of the difference between the amount of tax as may be  finally assessed and the amount of tax provisionally assessed. 

(3) The proper officer shall, within a period not exceeding six months  from the date of the communication of the order issued under sub-section (1),  pass the final assessment order after taking into account such information as  may be required for finalizing the assessment: 

Provided that the period specified in this sub-section may, on  sufficient cause being shown and for reasons to be recorded in writing, be  extended by the Joint Commissioner or Additional Commissioner for a  further period not exceeding six months and by the Commissioner for such  further period not exceeding four years. 

Consumer Welfare  Fund. 

Utilisation of Fund. 

Self-assessment. 

Provisional  

assessment.

1264 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(4) The registered person shall be liable to pay interest on any tax  

payable on the supply of goods or services or both under provisional  assessment but not paid on the due date specified under sub-section (7) of  section 39 or the rules made thereunder, at the rate specified under sub-section  (1) of section 50, from the first day after the due date of payment of tax in  respect of the said supply of goods or services or both till the date of actual  payment, whether such amount is paid before or after the issuance of order for  final assessment. 

(5) Where the registered person is entitled to a refund consequent to the  

order of final assessment under sub-section (3), subject to the provisions of  sub-section (8) of section 54, interest shall be paid on such refund as provided  in section 56. 

Scrutiny of returns. 61. (1) The proper officer may scrutinize the return and related particulars  furnished by the registered person to verify the correctness of the return and  inform him of the discrepancies noticed, if any, in such manner as may be  prescribed and seek his explanation thereto.  

(2) In case the explanation is found acceptable, the registered person  

shall be informed accordingly and no further action shall be taken in this  regard. 

(3) In case no satisfactory explanation is furnished within a period of  

thirty days of being informed by the proper officer or such further period, as  may be permitted by him or where the registered person, after accepting the  discrepancies, fails to take the corrective measurein his return for the month  in which the discrepancy is accepted, the proper officer may initiate  appropriate action including those under section 65 or section 66 or section  67, or proceed to determine the tax and other dues under section 73 or section  74. 

Assessment of  non-filers of  returns. 

  1. (1) Notwithstanding anything to the contrary contained in section 73 or  section 74, where a registered person fails to furnish the return under section  39 or section 45, even after the service of a notice under section 46, the proper  officer may proceed to assess the tax liability of the said person to the best of  his judgement taking into account all the relevant material which is available  or which he has gathered and issue an assessment order within a period of five  years from the date specified under section 44 for furnishing of the annual  return for the financial year to which the tax not paid relates.  

(2) Where the registered person furnishes a valid return within thirty  days of the service of the assessment order under sub-section (1), the said  assessment order shall be deemed to have been withdrawn but the liability for  payment of interest under sub-section (1) of section 50 or for payment of late  fee under section 47 shall continue.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1265 

  1. Notwithstanding anything to the contrary contained in section 73 or  section 74, where a taxable person fails to obtain registration even though  liable to do so or whose registration has been cancelled under sub-section (2)  of section 29 but who was liable to pay tax, the proper officer may proceed to  assess the tax liability of such taxable person to the best of his judgment for  the relevant tax periods and issue an assessment order within a period of five  years from the date specified under section 44 for furnishing of the annual  return for the financial year to which the tax not paid relates: 

Provided that no such assessment order shall be passed without giving  the person an opportunity of being heard. 

  1. (1) The proper officer may, on any evidence showing a tax liability of  a person coming to his notice, with the previous permission of Additional  Commissioner or Joint Commissioner, proceed to assess the tax liability of  such person to protect the interest of revenue and issue an assessment order,  if he has sufficient grounds to believe that any delay in doing so may  adversely affect the interest of revenue: 

Provided that where the taxable person to whom the liability  pertains is not ascertainable and such liability pertains to supply of goods, the  person in charge of such goods shall be deemed to be the taxable person liable  to be assessed and liable to pay tax and any other amount due under this  section. 

(2) On an application made by the taxable person within thirty days  from the date of receipt of order passed under sub-section (1) or on his own  motion, if the Additional Commissioner or Joint Commissioner considers that  such order is erroneous, he may withdraw such order and follow the procedure  laid down in section 73 or section 74. 

CHAPTER XIII 

AUDIT 

  1. (1) The Commissioner or any officer authorised by him, by way of a  general or a specific order, may undertake audit of any registered person for  such period, at such frequency and in such manner, as may be prescribed. 

(2) The officers referred to in sub-section (1) may conduct audit at the  place of business of the registered person or in their office. 

(3) The registered person shall be informed by way of a notice not less  than fifteen working days prior to the conduct of audit in such manner, as may  be prescribed. 

(4) The audit under sub-section (1) shall be completed within a period  of three months from the date of commencement of the audit: 

Provided that where the Commissioner is satisfied that audit in  respect of such registered person cannot be completed within three months,  he may, for the reasons to be recorded in writing, extend the period by a  further period not exceeding six months. 

Assessment of  

unregistered  

persons. 

Summary  

assessment in certain  special cases. 

Audit by tax 

authorities.

1266 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

Explanation.— For the purposes of this sub-section, the  

expression “commencement of audit” shall mean  

the date on which the records and other  

documents, called for by the tax authorities, are  

made available by the registered person or the  

actual institution of audit at the place of business,  

whichever is later. 

(5) During the course of audit, the authorised officer may require the  

registered person,–– 

(i) to afford him the necessary facility to verify the books of  

account or other documents, as he may require; 

(ii) to furnish such information, as he may require and render  

assistance for timely completion of the audit.  

(6) On conclusion of audit, the proper officer shall, within thirty days,  

inform the registered person, whose records are audited, about the findings,  his rights and obligations and the reasons for such findings. 

(7) Where the audit conducted under sub-section (1) results in  

detection of tax not paid or short paid or erroneously refunded, or input tax  credit wrongly availed or utilised, the proper officer may initiate action under  section 73 or section 74. 

Special audit. 66. (1) If at any stage of scrutiny, inquiry, investigation or any other  proceedings before him, any officer not below the rank of Assistant  Commissioner, having regard to the nature and complexity of the case and the  interest of revenue, is of the opinion that the value has not been correctly  declared or the credit availed is not within the normal limits, he may, with the  prior approval of the Commissioner, direct such registered person by a  communication in writing to get his records including books of account  examined and audited by a chartered accountant or a cost accountant as may  be nominated by the Commissioner. 

(2) The chartered accountant or cost accountant so nominated shall,  

within the period of ninety days, submit a report of such audit duly signed and  certified by him to the said Assistant Commissioner mentioning therein such  other particulars as may be specified: 

Provided that the Assistant Commissioner may, on an application  

made to him in this behalf by the registered person or the chartered accountant  or cost accountant or for any material and sufficient reason, extend the said  period by a further period of ninety days. 

(3) The provisions of sub-section (1) shall have effect notwithstanding  

that the accounts of the registered person have been audited under any other  provisions of this Act or any other law for the time being in force. 

(4) The registered person shall be given an opportunity of being heard  

in respect of any material gathered on the basis of special audit under sub section (1) which is proposed to be used in any proceedings against him under  this Act or the rules made thereunder.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1267 

(5) The expenses of the examination and audit of records under  

sub-section (1), including the remuneration of such chartered accountant or  cost accountant, shall be determined and paid by the Commissioner and such  determination shall be final. 

(6) Where the special audit conducted under sub-section (1) results in  

detection of tax not paid or short paid or erroneously refunded, or input tax  credit wrongly availed or utilised, the proper officer may initiate action under  section 73 or section 74. 

CHAPTER XIV 

INSPECTION, SEARCH, SEIZURE AND ARREST 

  1. (1) Where the proper officer, not below the rank of Joint  Commissioner, has reasons to believe that– 

(a) a taxable person has suppressed any transaction relating to  supply of goods or services or both or the stock of goods in  hand, or has claimed input tax credit in excess of his  entitlement under this Act or has indulged in contravention  of any of the provisions of this Act or the rules made  thereunder to evade tax under this Act; or  

(b) any person engaged in the business of transporting goods or  an owner or operator of a warehouse or a godown or any  other place is keeping goods which have escaped payment of  tax or has kept his accounts or goods in such a manner as is  likely to cause evasion of tax payable under this Act,  

he may authorise in writing any other officer of State tax to inspect any places  of business of the taxable person or the persons engaged in the business of  transporting goods or the owner or the operator of warehouse or godown or  any other place. 

(2) Where the proper officer, not below the rank of Joint  Commissioner, either pursuant to an inspection carried out under sub-section  (1) or otherwise, has reasons to believe that any goods liable to confiscation  or any documents or books or things, which in his opinion shall be useful for  or relevant to any proceedings under this Act, are secreted in any place, he  may authorise in writing any other officer of State tax to search and seize or  may himself search and seize such goods, documents or books or things: 

Provided that where it is not practicable to seize any such goods,  the proper officer, or any officer authorised by him, may serve on the owner  or the custodian of the goods an order that he shall not remove, part with, or  otherwise deal with the goods except with the previous permission of such  officer: 

Provided further that the documents or books or things so seized  shall be retained by such officer only for so long as may be necessary for their  examination and for any inquiry or proceedings under this Act. 

Power of inspection,  search and seizure.

1268 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(3) The documents, books or things referred to in sub-section (2) or  

any other documents, books or things produced by a taxable person or any  other person, which have not been relied upon for the issue of notice under  this Act or the rules made thereunder, shall be returned to such person within  a period not exceeding thirty days of the issue of the said notice.  

(4) The officer authorised under sub-section (2) shall have the power  

to seal or break open the door of any premises or to break open any almirah,  electronic devices, box, receptacle in which any goods, accounts, registers or  documents of the person are suspected to be concealed, where access to such  premises, almirah, electronic devices, box or receptacle is denied.  

(5) The person from whose custody any documents are seized under  

sub-section (2) shall be entitled to make copies thereof or take extracts  therefrom in the presence of an authorised officer at such place and time as  such officer may indicate in this behalf except where making such copies or  taking such extracts may, in the opinion of the proper officer, prejudicially  affect the investigation. 

(6) The goods so seized under sub-section (2) shall be released, on a  

provisional basis, upon execution of a bond and furnishing of a security, in  such manner and of such quantum, respectively, as may be prescribed or on  payment of applicable tax, interest and penalty payable, as the case may be. 

(7) Where any goods are seized under sub-section (2) and no notice in  

respect thereof is given within six months of the seizure of the goods, the  goods shall be returned to the person from whose possession they were seized:  

Provided that the period of six months may, on sufficient cause  

being shown, be extended by the proper officer for a further period not  exceeding six months. 

(8) The Government may, having regard to the perishable or hazardous  

nature of any goods, depreciation in the value of the goods with the passage  of time, constraints of storage space for the goods or any other relevant  considerations, by notification, specify the goods or class of goods which  shall, as soon as may be after its seizure under sub-section (2), be disposed of  by the proper officer in such manner, as may be prescribed.  

(9) Where any goods, being goods specified under sub-section (8),  

have been seized by a proper officer, or any officer authorised by him under  sub-section (2), he shall prepare an inventory of such goods in such manner,  as may be prescribed. 

(10) The provisions of the Code of Criminal Procedure, 1973 (Central  

Act 2 of 1974), relating to search and seizure, shall, so far as may be, apply  to search and seizure under this section subject to the modification that  sub-section (5) of section 165 of the said Code shall have effect as if for the  word “Magistrate”, wherever it occurs, the word “Commissioner” were  substituted.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1269 

(11) Where the proper officer has reasons to believe that any person has  

evaded or is attempting to evade the payment of any tax, he may, for reasons  to be recorded in writing, seize the accounts, registers or documents of such  person produced before him and shall grant a receipt for the same, and shall  retain the same for so long as may be necessary in connection with any  proceedings under this Act or the rules made thereunder for prosecution. 

(12) The Commissioner or an officer authorised by him may cause  

purchase of any goods or services or both by any person authorised by him  from the business premises of any taxable person, to check the issue of tax  invoices or bills of supply by such taxable person, and on return of goods so  purchased by such officer, such taxable person or any person in charge of the  business premises shall refund the amount so paid towards the goods after  cancelling any tax invoice or bill of supply issued earlier. 

  1. (1) The Government may require the person in charge of a conveyance  carrying any consignment of goods of value exceeding such amount as may  be specified to carry with him such documents and such devices, as may be  prescribed.  

(2) The details of documents required to be carried under  sub-section (1) shall be validated in such manner, as may be prescribed. 

(3) Where any conveyance referred to in sub-section (1) is intercepted  by the proper officer at any place, he may require the person in charge of the  said conveyance to produce the documents prescribed under the said sub section and devices for verification, and the said person shall be liable to  produce the documents and devices and also allow the inspection of goods. 

  1. (1) Where the Commissioner has reasons to believe that a person  has committed any offence specified in clause (a) or clause (b) or clause (c)  or clause (d) of sub-section (1) of section 132 which is punishable under  clause (i) or (ii) of sub-section (1), or sub-section (2) of the said section, he  may, by order, authorise any officer of State tax to arrest such person.  

(2) Where a person is arrested under sub-section (1) for an offence  specified under sub-section (5) of section 132, the officer authorised to arrest  the person shall inform such person of the grounds of arrest and produce him  before a Magistrate within twenty four hours.  

(3) Subject to the provisions of the Code of Criminal Procedure, 1973  (Central Act 2 of 1974),- 

(a) where a person is arrested under sub-section (1) for any  offence specified under sub-section (4) of section 132, he  shall be admitted to bail or in default of bail, forwarded to the  custody of the Magistrate; 

Inspection of goods  in movement. 

Power to arrest.

1270 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(b) in the case of a non-cognizable and bailable offence, the  

Deputy Commissioner or the Assistant Commissioner shall,  

for the purpose of releasing an arrested person on bail or  

otherwise, have the same powers and be subject to the same  

provisions as an officer-in-charge of a police station. 

Power to summon  persons to give  evidence and  

produce documents. Access to business  

  1. (1) The proper officer under this Act shall have power to summon any  person whose attendance he considers necessary either to give evidence or to  produce a document or any other thing in any inquiry in the same manner, as  provided in the case of a civil court under the provisions of the Code of Civil  Procedure, 1908 (Central Act 5 of 1908). 

(2) Every such inquiry referred to in sub-section (1) shall be deemed to  be a “judicial proceedings” within the meaning of section 193 and section 228  of the Indian Penal Code (Central Act 45 of 1860). 

premises.71. (1) Any officer under this Act, authorised by the proper officer not  

below the rank of Joint Commissioner, shall have access to any place of  business of a registered person to inspect books of account, documents,  computers, computer programs, computer software whether installed in a  computer or otherwise and such other things as he may require and which may  be available at such place, for the purposes of carrying out any audit, scrutiny,  verification and checks as may be necessary to safeguard the interest of  revenue. 

(2) Every person in charge of place referred to in sub-section (1) shall,  

on demand, make available to the officer authorised under sub-section (1) or  the audit party deputed by the proper officer or a cost accountant or chartered  accountant nominated under section 66–– 

(i) such records as prepared or maintained by the registered  

person and declared to the proper officer in such manner as  

may be prescribed;  

(ii) trial balance or its equivalent; 

(iii) statements of annual financial accounts, duly audited,  

wherever required;  

(iv) cost audit report, if any, under section 148 of the Companies  

Act, 2013 (Central Act 18 of 2013); 

(v) the income-tax audit report, if any, under section 44AB of the  

Income-tax Act, 1961 (Central Act 43 of 1961); and 

(vi) any other relevant record,  

for the scrutiny by the officer or audit party or the chartered accountant or  cost accountant within a period not exceeding fifteen working days from the  day when such demand is made, or such further period as may be allowed by  the said officer or the audit party or the chartered accountant or cost  accountant.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1271 

  1. (1) All officers of Police, Railways, Customs, and those officers  engaged in the collection of land revenue, including village officers, officers  of central tax and officers of the Union territory tax shall assist the proper  officers in the implementation of this Act. 

(2) The Government may, by notification, empower and require any  other class of officers to assist the proper officers in the implementation of  this Act when called upon to do so by the Commissioner. 

CHAPTER XV 

DEMANDS AND RECOVERY 

  1. (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 for any reason, other than the reason of fraud or  any wilfulmisstatement or suppression of facts to evade tax, 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. 

(2) The proper officer shall issue the notice under sub-section (1) at  least three months prior to the time limit specified in sub-section (10) for  issuance of order. 

(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  sub-section (1) are the same as are mentioned in the earlier notice. 

(5) The person chargeable with tax may, before service of notice under  sub-section (1) or, as the case may be, the statement under  sub-section (3), pay the amount of tax along with interest payable thereon  under section 50 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. 

(6) The proper officer, on receipt of such information, shall not serve  any notice under sub-section (1) or, as the case may be, the statement under  sub-section (3), in respect of the tax so paid or any penalty payable under the  provisions of this Act or the rules made thereunder. 

Officers to assist  proper officers

Determination of tax  not paid or short  paid or erroneously  refunded or input tax  credit wrongly  

availed or utilised  for any reason other  than fraud or any  wilful- misstatement  or suppression of  facts.

1272 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(7) Where the proper officer is of the opinion that the amount paid  

under sub-section (5) 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. 

(8) Where any person chargeable with tax under sub-section (1) or sub 

section (3) pays the said tax along with interest payable under section 50  within thirty days of issue of show cause notice, no penalty shall be payable  and all proceedings in respect of the said notice shall be deemed to be  concluded. 

(9) The proper officer shall, after considering the representation, if  

any, made by person chargeable with tax, determine the amount of tax,  interest and a penalty equivalent to ten percent of tax or ten thousand rupees,  whichever is higher, due from such person and issue an order. 

(10) The proper officer shall issue the order under sub-section (9) within  

three years 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 three years from the date of erroneous refund. 

(11) Notwithstanding anything contained in sub-section (6) or  

sub-section (8), penalty under sub-section (9) 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. 

Determination of tax  not paid or short  paid or erroneously  refunded or input  tax credit wrongly  availed or utilised  by reason of fraud or  any wilful 

misstatement or  suppression of facts. 

  1. (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 by reason of fraud, or any wilfulmisstatement or  suppression of facts to evade tax, 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 equivalent to the tax specified in the  notice. 

(2) The proper officer shall issue the notice under sub-section (1) at  least six months prior to the time limit specified in sub-section (10) for  issuance of order. 

(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.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1273 

(4) The service of statement under sub-section (3) shall be deemed to  

be service of notice under sub-section (1) of section 73, subject to the  condition that the grounds relied upon in the said statement, except the ground  of fraud, or any wilful-misstatement or suppression of facts to evade tax, for  periods other than those covered under sub-section (1) are the same as are  mentioned in the earlier notice.  

(5) The person chargeable with tax may, before service of notice under  

sub-section (1), pay the amount of 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.  

(6) The proper officer, on receipt of such information, shall not serve  

any notice under sub-section (1), in respect of the tax so paid or any penalty  payable under the provisions of this Act or the rules made thereunder. 

(7) Where the proper officer is of the opinion that the amount paid  

under sub-section (5) 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. 

(8) Where any person chargeable with tax under sub-section (1) pays  

the said tax along with interest payable under section 50 and a penalty  equivalent to twenty five percent of such tax within thirty days of issue of the  notice, all proceedings in respect of the said notice shall be deemed to be  concluded. 

(9) The proper officer shall, after considering the representation, if  

any, made by the person chargeable with tax, determine the amount of tax,  interest and penalty due from such person and issue an order.  

(10) The proper officer shall issue the order under sub-section (9) within  

a period of five years 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 five years from the date of  erroneous refund.  

(11) Where any person served with an order issued under sub-section  

(9) pays the tax along with interest payable thereon under section 50 and a  penalty equivalent to fifty percent of such tax within thirty days of  communication of the order, all proceedings in respect of the said notice shall  be deemed to be concluded. 

Explanation 1.— For the purposes of section 73 and this section,- 

(i) the expression “all proceedings in respect  

of the said notice” shall not include  

proceedings under section 132;

1274 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(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 section  

73 or section 74, the proceedings against all  

the persons liable to pay penalty under  

sections 122, 125, 129 and 130 are deemed  

to be concluded. 

Explanation 2.— For the purposes of this Act, the expression  

“supperssion” 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. 

General  

provisions  

relating to  

determination of  tax. 

  1. (1) Where the service of notice or issuance of order is stayed by an order  of a court or Appellate Tribunal, the period of such stay shall be excluded in  computing the period specified in sub-sections (2) and (10) of section 73 or sub sections (2) and (10) of section 74, as the case may be.  

(2) Where any Appellate Authority or Appellate Tribunal or court  concludes that the notice issued under sub-section (1) of section 74 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 proper officer shall determine the tax payable  by such person, deeming as if the notice were issued under sub-section (1) of  section 73. 

(3) Where any order is required to be issued in pursuance of the direction  of the Appellate Authority or Appellate Tribunal or a court, such order shall be  issued within two years from the date of communication of the said direction. 

(4) An opportunity of hearing shall be granted where a request is  received in writing from the person chargeable with tax or penalty, or where any  adverse decision is contemplated against such person. 

(5) The proper officer shall, if sufficient cause is shown by the person  chargeable with tax, grant time to the said person and adjourn the hearing for  reasons to be recorded in writing: 

Provided that no such adjournment shall be granted for more than  three times to a person during the proceedings. 

(6) The proper officer, in his order, shall set out the relevant facts and the  basis of his decision. 

(7) The amount of tax, interest and penalty demanded in the order shall  not be in excess of the amount specified in the notice and no demand shall be  confirmed on the grounds other than the grounds specified in the notice.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1275 

(8) Where the Appellate Authority or Appellate Tribunal or court  modifies the amount of tax determined by the proper officer, the amount of  interest and penalty shall stand modified accordingly, taking into account the  amount of tax so modified. 

(9) The interest on the tax short paid or not paid shall be payable whether  or not specified in the order determining the tax liability. 

(10) The adjudication proceedings shall be deemed to be concluded, if the  order is not issued within three years as provided for in sub-section (10) of  section 73 or within five years as provided for in sub-section (10) of  section 74. 

(11) An issue on which the Appellate Authority or the Appellate Tribunal  or the High Court has given its decision which is prejudicial to the interest of  revenue in some other proceedings and an appeal to the Appellate Tribunal or  the High Court or the Supreme Court against such decision of the Appellate  Authority or the Appellate Tribunal or the High Court is pending, the period  spent between the date of the decision of the Appellate Authority and that of  the Appellate Tribunal or the date of decision of the Appellate Tribunal and  that of the High Court or the date of the decision of the High Court and that of  the Supreme Court shall be excluded in computing the period referred to in sub section (10) of section 73 or sub-section (10) of section 74 where proceedings  are initiated by way of issue of a show cause notice under the said sections. 

(12) Notwithstanding anything contained in section 73 or section 74,  where any amount of self-assessed tax in accordance with a return furnished  under section 39 remains unpaid, either wholly or partly, or any amount of  interest payable on such tax remains unpaid, the same shall be recovered under  the provisions of section 79. 

(13) Where any penalty is imposed under section 73 or section 74,  no penalty for the same act or omission shall be imposed on the same person  under any other provision of this Act. 

  1. (1) Notwithstanding anything to the contrary contained in any order or  direction of any Appellate Authority or Appellate Tribunal or court or in any  other provisions of this Act or the rules made thereunder or any other law for  the time being in force, every person who has collected from any other person  any amount as representing the tax under this Act, and has not paid the said  amount to the Government, shall forthwith pay the said amount to the  Government, irrespective of whether the supplies in respect of which such  amount was collected are taxable or not. 

(2) Where any amount is required to be paid to the Government under  sub-section (1), and which has not been so paid, the proper officer may serve  on the person liable to pay such amount a notice requiring him to show cause  as to why the said amount as specified in the notice, should not be paid by him  to the Government and why a penalty equivalent to the amount specified in the  notice should not be imposed on him under the provisions of this Act. 

Tax collected but  not paid to  

Government.

1276 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(3) The proper officer shall, after considering the representation, if any,  

made by the person on whom the notice is served under sub-section (2),  determine the amount due from such person and thereupon such person shall  pay the amount so determined. 

(4) The person referred to in sub-section (1) shall in addition to paying  

the amount referred to in sub-section (1) or sub-section (3) also be liable to  pay interest thereon at the rate specified under section 50 from the date such  amount was collected by him to the date such amount is paid by him to the  Government. 

(5) An opportunity of hearing shall be granted where a request is  

received in writing from the person to whom the notice was issued to show  cause.  

(6) The proper officer shall issue an order within one year from the date  

of issue of the notice. 

(7) Where the issuance of order is stayed by an order of the court or  

Appellate Tribunal, the period of such stay shall be excluded in computing the  period of one year. 

(8) The proper officer, in his order, shall set out the relevant facts and  

the basis of his decision. 

(9) The amount paid to the Government under sub-section (1) or  

sub-section (3) shall be adjusted against the tax payable, if any, by the person  in relation to the supplies referred to in sub-section (1). 

(10) Where any surplus is left after the adjustment under sub-section (9),  

the amount of such surplus shall either be credited to the Fund or refunded to  the person who has borne the incidence of such amount. 

(11) The person who has borne the incidence of the amount, may apply  

for the refund of the same in accordance with the provisions of section 54. 

Tax wrongfully  collected and paid  to Central  

Government or  State Government. 

Initiation of  

recovery  

proceedings.  

  1. (1) A registered person who has paid the central tax and State tax on a  transaction considered by him to be an intra-State supply, but which is  subsequently held to be an inter-State supply, shall be refunded the amount of  taxes so paid in such manner and subject to such conditions, as may be  prescribed. 

(2) A registered person who has paid integrated tax on a transaction  considered by him to be an inter-State supply, but which is subsequently held  to be an intra-State supply, shall not be required to pay any interest on the  amount of State tax payable. 

  1. Any amount payable by a taxable person in pursuance of an order passed  under this Act shall be paid by such person within a period of three months  from the date of service of such order failing which recovery proceedings shall  be initiated:  

Provided that where the proper officer considers it expedient in the  interest of revenue, he may, for reasons to be recorded in writing, require the  said taxable person to make such payment within such period less than a  period of three months as may be specified by him.

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1277 

  1. (1) Where any amount payable by a person to the Government under  any of the provisions of this Act or the rules made thereunder is not paid, the  proper officer shall proceed to recover the amount by one or more of the  following modes, namely:–– 

(a) the proper officer may deduct or may require any other  specified officer to deduct the amount so payable from any  money owing to such person which may be under the control  of the proper officer or such other specified officer; 

(b) the proper officer may recover or may require any other  specified officer to recover the amount so payable by  detaining and selling any goods belonging to such person  which are under the control of the proper officer or such other  specified officer; 

(c) (i) the proper officer may, by a notice in writing, require  any other person from whom money is due or may  

become due to such person or who holds or may  

subsequently hold money for or on account of such  

person, to pay to the Government either forthwith upon  

the money becoming due or being held, or within the  

time specified in the notice not being before the money  

becomes due or is held, so much of the money as is  

sufficient to pay the amount due from such person or the  

whole of the money when it is equal to or less than that  

amount;  

(ii) every person to whom the notice is issued under  sub-clause (i) shall be bound to comply with such  

notice, and in particular, where any such notice is issued  

to a post office, banking company or an insurer, it shall  

not be necessary to produce any pass book, deposit  

receipt, policy or any other document for the purpose of  

any entry, endorsement or the like being made before  

payment is made, notwithstanding any rule, practice or  

requirement to the contrary;  

(iii) in case the person to whom a notice under  sub-clause (i) has been issued, fails to make the  

payment in pursuance thereof to the Government, he  

shall be deemed to be a defaulter in respect of the  

amount specified in the notice and all the consequences  

of this Act or the rules made thereunder shall follow; 

(iv) the officer issuing a notice under sub-clause (i) may, at  any time, amend or revoke such notice or extend the  

time for making any payment in pursuance of the  

notice; 

Recovery of tax.

1278 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

(v) any person making any payment in compliance with a  

notice issued under sub-clause (i) shall be deemed to  

have made the payment under the authority of the person  

in default and such payment being credited to the  

Government shall be deemed to constitute a good and  

sufficient discharge of the liability of such person to the  

person in default to the extent of the amount specified in  

the receipt; 

(vi) any person discharging any liability to the person in  

default after service on him of the notice issued under  

sub-clause (i) shall be personally liable to the  

Government to the extent of the liability discharged or  

to the extent of the liability of the person in default for  

tax, interest and penalty, whichever is less; 

(vii) where a person on whom a notice is served under  

sub-clause (i) proves to the satisfaction of the officer  

issuing the notice that the money demanded or any part  

thereof was not due to the person in default or that he did  

not hold any money for or on account of the person in  

default, at the time the notice was served on him, nor is  

the money demanded or any part thereof, likely to  

become due to the said person or be held for or on  

account of such person, nothing contained in this section  

shall be deemed to require the person on whom the  

notice has been served to pay to the Government any  

such money or part thereof;  

(d) the proper officer may, in accordance with the rules to be made  

in this behalf, distrain any movable or immovable property  

belonging to or under the control of such person, and detain the  

same until the amount payable is paid; and in case, any part of  

the said amount payable or of the cost of the distress or keeping  

of the property, remains unpaid for a period of thirty days next  

after any such distress, may cause the said property to be sold  

and with the proceeds of such sale, may satisfy the amount  

payable and the costs including cost of sale remaining unpaid  

and shall render the surplus amount, if any, to such person;  

(e) the proper officer may prepare a certificate signed by him  

specifying the amount due from such person and send it to the  

Collector of the district in which such person owns any  

property or resides or carries on his business or to any officer  

authorised by the Government and the said Collector or the  

said officer, on receipt of such certificate, shall proceed to  

recover from such person the amount specified thereunder as  

if it were an arrear of land revenue;

HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 1279 

(f) Notwithstanding anything contained in the Code of  

Criminal Procedure, 1973 (Central Act 2 of 1974), the  

proper officer may file an application to the appropriate  

Magistrate and such Magistrate shall proceed to recover  

from such person the amount specified thereunder as if it  

were a fine imposed by him. 

(2) Where the terms of any bond or other instrument executed under  

this Act or any rules or regulations made thereunder provide that any  amount due under such instrument may be recovered in the manner laid  down in sub-section (1), the amount may, without prejudice to any other  mode of recovery, be recovered in accordance with the provisions of that  sub-section. 

(3) Where any amount of tax, interest or penalty is payable by a  

person to the Government under any of the provisions of this Act or the  rules made thereunder and which remains unpaid, the proper officer of  central tax, during the course of recovery of said tax arrears, may recover  the amount from the said person as if it were an arrear of central tax and  credit the amount so recovered to the account of the Government.  

(4) Where the amount recovered under sub-section (3) is less than  

the amount due to the Central Government and State Government, the amount to be credited to the account of the respective Governments shall  be in proportion to the amount due to each such Government. 

  1. On an application filed by a taxable person, the Commissioner may,  for reasons to be recorded in writing, extend the time for payment or allow  payment of any amount due under this Act, other than the amount due as  per the liability self-assessed in any return, by such person in monthly  instalments not exceeding twenty four, subject to payment of interest  under section 50 and subject to such conditions and limitations, as may be  prescribed: 

Provided that where there is default in payment of any one instalment  on its due date, the whole outstanding balance payable on such date shall  become due and payable forthwith and shall, without any further notice  being served on the person, be liable for recovery. 

  1. Where a person, after any amount has become due from him, creates  a charge on or parts with the property belonging to him or in his possession  by way of sale, mortgage, exchange, or any other mode of transfer  whatsoever of any of his properties in favour of any other person with the  intention of defrauding the Government revenue, such charge or transfer  shall be void as against any claim in respect of any tax or any other sum  payable by the said person: 

Payment of tax and  other amount in  instalments. 

Transfer of  

property to be void  in certain cases.

1280 HARYANA GOVT. GAZ. (EXTRA.), MAY 4, 2017 (VYSK. 13, 1939 SAKA) 

Provided that, such charge or transfer shall not be void if it is made for  

adequate consideration, in good faith and without notice of the pendency of  such proceedings under this Act or without notice of such tax or other sum  payable by the said person, or with the previous permission of the proper  officer. 

Tax to be first  

charge on property. 

Provisional  

attachment to  

protect revenue in  certain cases. 

Continuation and  validation of certain  recovery  

proceedings. 

  1. Notwithstanding anything to the contrary contained in any law for the  time being in force, save as otherwise provided in the Insolvency and  Bankruptcy Code, 2016 (Central Act 31 of 2016), any amount payable by a  taxable person or any other person on account of tax, interest or penalty which  he is liable to pay to the Government shall be a first charge on the property of  such taxable person or such person. 
  2. (1) Where during the pendency of any proceedings under section 62 or  section 63 or section 64 or section 67 or section 73 or section 74, the  Commissioner is of the opinion that for the purpose of protecting the interest  of the Government revenue, it is necessary so to do, he may, by order in  writing attach provisionally any property, including bank account, belonging  to the taxable person in such manner, as may be prescribed.  

(2) Every such provisional attachment shall cease to have effect after  the expiry of a period of one year from the date of the order made under sub section (1). 

  1. Where any notice of demand in respect of any tax, penalty, interest or  any other amount payable under this Act, (hereafter in this section referred to  as “Government dues”), is served upon any taxable person or any other person  and any appeal or revision application is filed or any other proceedings is  initiated in respect of such Government dues, then–– 

(a) where such Government dues are enhanced in such appeal, revision  or other proceedings, the Commissioner shall serve upon the  taxable person or any other person another notice of demand in  respect of the amount by which such Government dues are  enhanced and any recovery proceedings in relation to such  Government dues as are covered by the notice of demand served  upon him before the disposal of such appeal, revision or other  proceedings may, without the service of any fresh notice of  demand, be continued from the stage at which such proceedings  stood immediately before such disposal;  

(b) where such Government dues are reduced in such appeal, revision  or in other proceedings- 

(i) it shall not be necessary for the Commissioner to serve upon  the taxable person a fresh notice of demand;