THE KARNATAKA GOODS AND SERVICES TAX (AMENDMENT) ACT, 2024
KARNATAKA ACT NO. 36 OF 2024
(First Published in the Karnataka Gazette Extra-ordinary on the 12th day of August 2024
(Received the assent of the Governor on the 7th day of August 2024)
An Act further to amend the Karnataka Goods and Services Tax Act, 2017(Karnataka Act 27 of 2017).
Whereas, it is expedient further to amend the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), for the purpose hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the seventy fifth year of the Republic of India as follows:-
1. Short title and commencement.- (1) This Act may be called the Karnataka Goods and Services Tax (Amendment) Act, 2024.
(2) Save as otherwise provided, the provisions of this Act shall come into force on such date, as the Government may, by notification in the Official Gazette, appoint.
2. Amendment of section 2.- In the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) (hereinafter referred to as the principal Act), in section 2, for clause (61), the following shall be substituted, namely:-
“(61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25 and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20.”
Substitution of section 20.- For section 20 of the principal Act, the following section shall be substituted, namely:-
“20. Manner of distribution of credit by Input Service Distributor.-(1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.
(2) The Input Service Distributor shall distribute the credit of State tax or integrated tax charged on invoices received by him, including the credit or State tax or integrated tax in respect of services subject to levy of tax under sub-section (3) or sub-section (4) of section 9 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within such time and subject to restrictions and conditions as may be prescribed.
(3) The credit of State tax shall be distributed as State tax or integrated tax and integrated tax as integrated tax or State tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.”
4. Insertion of new section 122A.- In the principal Act, after section 122, the following new section shall be inserted, namely:-
“122A. Penalty for failure to register certain machines used in manufacture of goods as per special procedure.- (1) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.
(2) In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation:
Provided that, such machine shall not be confiscated where:-
(a) the penalty so imposed is paid; and
(b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty.”
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