Notes - Notes on clauses - UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017

Notes on clauses Clause 1 provides for short title, extent and commencement of the proposed Act. Clause 2 defines various terms and expressions used in the proposed Act. Clause 3 provides for appointment of Commissioners and other class of officers as may be required for carrying out the purposes of the proposed Act. Clause 4 confers power on the Administrator to appoint officers of Union territory tax below the rank of Assistant Commissioner of Union territory tax for the administration of the proposed Act. Clause 5 provides for conditions and exceptions for exercising the powers by the Union territory tax officers. Clause 6 provides for authorisation of Central tax officers, subject to certain conditions as shall be notified by the Central Government on recommendations of the Council, to be proper officers for the purposes of the proposed Act. Clause 7 provides for levy of Union territory 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 of the Central Goods and Services Tax Act at such rates not exceeding forty per cent. This clause further provides that (i) Union territory tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel to be levied with effect from a date notified by the Central Government on the recommendations of the Council; (ii) the Central Government to notify 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, on the recommendations of the Council; (iii) the Union territory 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; (iv) the Central Government may notify 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, on the recommendations of the Council. Clause 8 confers powers on the Central Government to exempt either absolutely or conditionally goods or services or both of any specified description from the whole or any part of the Union territory tax, on the recommendations of the Council. It also confers powers on the Central Government to exempt from payment of tax any goods or services or both, by special order, on which tax is leviable on the recommendations of the Council. Clause 9 provides for the manner and order in which input tax credit of integrated tax and input tax credit of Union territory tax is to be utilised. Clause 10 provides for transfer of credit of Union territory tax to the integrated tax account when Union territory tax credit has been used for payment of central tax. Clause 11 provides for officers of Police, Railways, Customs and other officers engaged in collection of land revenue to assist officers involved in implementation of this Act. Clause 12 provides for refund of Union territory tax in situations where intra-State supplies are subsequently held to be inter-State supplies. Clause 13 provides for recovery of Union territory tax, interest or penalty by Central tax officer while recovering arrears of Central tax. Clause 14 defines terms and expressions such as advance ruling, applicant, application, etc., used in Chapter VII. Clause 15 provides for constitution of Advance Ruling by the Central Government. Clause 16 provides for constitution of Appellate Authority for Advance Ruling by the Central Government. Clause 17 provides for migration of taxpayers registered under the existing law to be issued provisional registration under the proposed Act, if the said taxpayer is required to be registered under the provisions of the proposed Act. Clause 18 provides for transitional arrangements for carrying forward of input tax credit available under the existing law. Clause 19 provides for transitional provisions relating to job-work. Clause 20 provides for miscellaneous provisions for transition of existing tax payers in various situations. Clause 21 provides for application of specific provisions of the Central Goods and Services Tax Act to the proposed Act. Clause 22 confers powers on the Central Government to make rules for carrying out the provisions of the proposed Act on recommendations of the Council. Clause 23 confers powers on the Board to make regulations for carrying out the provisions of the proposed Act. Clause 24 provides for laying of rules, regulations and notifications made by the Central Government before each House of the Parliament. Clause 25 confers powers to the Commissioner to issue orders, instructions or directions to the Union territory tax officers for uniform implementation of the provisions of the proposed Act. Clause 26 confers powers on the Central Government to make such provisions not inconsistent with the provisions of the proposed Act or the rules or regulations by a general or special order, on the recommendations of the Council within a period of three years from the date of commencement of the proposed Act.