THE KARNATAKA GOODS AND SERVICES TAX (AMENDMENT) ACT, 2022
KARNATAKA ACT NO. 36 OF 2022
(First Published in the Karnataka Gazette Extra-ordinary on the 18th day of
October 2022)
(Received the assent of the Governor on the 17th day of October, 2022)
An Act further to amend the Karnataka Goods and Services Tax Act,
2017(Karnataka Act 27 of 2017).
Be it enacted by Legislature of Karnataka in the Seventy-third 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, 2022.
(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 16.- In the Karnataka Goods and Services Tax
Act, 2017(hereinafter referred to as the principal Act), in section 16,-
(a) in sub-section (2),-
(i) after clause (b), the following clause shall be inserted, namely:-
“(ba) the details of input tax credit in respect of the said supply communicated
to such registered person under section 38 has not been restricted;”;
(ii) in clause (c), the words, figures and letter “or section 43A” shall be omitted;
(b) in sub-section (4), for the words and figures “due date of furnishing of the
return under section 39 for the month of September”, the words “thirtieth day of
November” shall be substituted.
3. Amendment of section 29.- In section 29 of the principal Act, in subsection(
2),-
(a) in clause (b), for the words “returns for three consecutive tax periods”, the
words “the return for a financial year beyond three months from the due date of
furnishing the said return” shall be substituted;
(b) in clause (c), for the words “a continuous period of six months”, the words
“such continuous tax period as may be prescribed” shall be substituted.
4. Amendment of section 34.- In section 34 of the principal Act, in subsection
(2), for the word “September”, the words “the thirtieth day of November” shall
be substituted.
5. Amendment of section 37.- In section 37 of the principal Act,-
(a) in sub-section(1),-
(i) after the words “shall furnish, electronically,”, the words “subject to such
conditions and restrictions and” shall be inserted;
(ii) for the words “shall be communicated to the recipient of the said supplies
within such time and in such manner as may be prescribed”, the words “shall, subject
to such conditions and restrictions, within such time and in such manner as may be
prescribed, be communicated to the recipient of the said supplies” shall be
substituted;
(iii) the first proviso shall be omitted;
(iv) in the second proviso, for the words “Provided further that”, the words
“Provided that” shall be substituted;
(v) in the third proviso, for the words “Provided also that”, the words “Provided
further that” shall be substituted;
(b) sub-section (2) shall be omitted;
(c) in sub-section (3),-
(i) the words and figures “and which have remained unmatched under section
42 or section 43” shall be omitted;
(ii) in the first proviso, for the words and figures “furnishing of the return under
section 39 for the month of September”, the words “the thirtieth day of November”
shall be substituted;
(d) after sub-section (3), the following sub-section shall be inserted, namely:-
“(4) A registered person shall not be allowed to furnish the details of outward
supplies under sub-section(1) for a tax period, if the details of outward supplies
for any of the previous tax periods has not been furnished by him:
Provided that the Government may, on the recommendations of the Council, by
notification, subject to such conditions and restrictions as may be specified therein,
allow a registered person or a class of registered persons to furnish the details of
outward supplies under sub-section (1), even if he has not furnished the details of
outward supplies for one or more previous tax periods.”.
6. Substitution of section 38.- For section 38 of the principal Act, the
following section shall be substituted, namely:-
“38.Communication of details of inward supplies and input tax credit.-
(1) The details of outward supplies furnished by the registered persons under
sub-section (1) of section 37 and of such other supplies as may be prescribed, and an
auto-generated statement containing the details of input tax credit shall be made
available electronically to the recipients of such supplies in such form and manner,
within such time, and subject to such conditions and restrictions as may be
prescribed.
(2) The auto-generated statement under sub-section (1) shall consist of-
(a) details of inward supplies in respect of which credit of input tax may be
available to the recipient; and
(b) details of supplies in respect of which such credit cannot be availed, whether
wholly or partly, by the recipient, on account of the details of the said supplies being
furnished under sub-section (1) of section 37,-
(i) by any registered person within such period of taking registration as may be
prescribed; or
(ii) by any registered person, who has defaulted in payment of tax and where
such default has continued for such period as may be prescribed; or
(iii) by any registered person, the output tax payable by whom in accordance
with the statement of outward supplies furnished by him under the said sub-section
during such period, as may be prescribed, exceeds the output tax paid by him during
the said period by such limit as may be prescribed; or
(iv) by any registered person who, during such period as may be prescribed, has
availed credit of input tax of an amount that exceeds the credit that can be availed by
him in accordance with clause (a), by such limit as may be prescribed; or
(v) by any registered person, who has defaulted in discharging his tax liability in
accordance with the provisions of sub-section (12) of section 49 subject to such
conditions and restrictions as may be prescribed; or
(vi) by such other class of persons as may be prescribed.”.
7. Amendment of section 39.- In section 39 of the principal Act,-
(a) in sub-section (5), for the word “twenty”, the word “thirteen” shall be
substituted;
(b) in sub-section (7), for the first proviso, the following proviso shall be
substituted, namely:-
“Provided that every registered person furnishing return under the proviso to
sub-section (1) shall pay to the Government, in such form and manner, and within
such time, as may be prescribed,-
(a) an amount equal to the tax due taking into account inward and outward
supplies of goods or services or both, input tax credit availed, tax payable and such
other particulars during a month; or
(b) in lieu of the amount referred to in clause (a), an amount determined in
such manner and subject to such conditions and restrictions as may be prescribed.”;
(c) in sub-section (9),-
(i) for the words and figures “Subject to the provisions of sections 37 and 38,
if”, the word “Where” shall be substituted;
(ii) in the proviso, for the words “the due date for furnishing of return for the
month of September or second quarter”, the words “the thirtieth day of November”
shall be substituted;
(d) in sub-section (10), for the words “has not been furnished by him”, the
following shall be substituted, namely:-
“or the details of outward supplies under sub-section (1) of section 37 for the
said tax period has not been furnished by him:
Provided that the Government may, on the recommendations of the Council,
by notification, subject to such conditions and restrictions as may be specified
therein, allow a registered person or a class of registered persons to furnish the
return, even if he has not furnished the returns for one or more previous tax periods
or has not furnished the details of outward supplies under sub-section (1) of section
37 for the said tax period.”.
8. Substitution of section 41.-For section 41 of the principal Act, the
following section shall be substituted, namely:-
“41.Availment of input tax credit.-
(1) Every registered person shall, subject to such conditions and restrictions as
may be prescribed, be entitled to avail the credit of eligible input tax, as self-assessed,
in his return and such amount shall be credited to his electronic credit ledger.
(2) The credit of input tax availed by a registered person under sub-section (1)
in respect of such supplies of goods or services or both, the tax payable whereon has
not been paid by the supplier, shall be reversed along with applicable interest, by the
said person in such manner as may be prescribed:
Provided that where the said supplier makes payment of the tax payable in
respect of the aforesaid supplies, the said registered person may re-avail the amount
of credit reversed by him in such manner as may be prescribed.”.
9. Omission of sections 42, 43 and 43A.- Sections 42, 43 and 43A of the
principal Act shall be omitted.
10. Amendment of section 47.- In section 47of the principal Act, in subsection(
1),-
(a) the words “or inward” shall be omitted;
(b) the words and figures “or section 38” shall be omitted;
(c) after the words and figures “section 39 or section 45”, the words and figures
“or section 52” shall be inserted.
11. Amendment of section 48.- In section 48 of the principal Act, in subsection
(2), the words and figures “, the details of inward supplies under section 38”
shall be omitted.
12. Amendment of section 49.- In section 49 of the principal Act,-
(a) in sub-section (2), the words, figures and letter “or section 43A” shall be
omitted;
(b) in sub-section (4), after the words “subject to such conditions”, the
words “and restrictions” shall be inserted;
(c) after sub-section (11), the following sub-section shall be inserted,
namely:-
“(12) Notwithstanding anything contained in this Act, the Government
may, on the recommendations of the Council, subject to such
conditions and restrictions, specify such maximum proportion of
output tax liability under this Act or under the Integrated Goods and
Services Tax Act, 2017 which may be discharged through the electronic
credit ledger by a registered person or a class of registered persons, as
may be prescribed.”.
13. Amendment of section 50.- In section 50 of principal Act, for subsection
(3), the following sub-section shall be substituted and shall be deemed to have
been substituted with effect from the 1st day of July, 2017, namely:-
“(3) Where the input tax credit has been wrongly availed and utilised, the
registered person shall pay interest on such input tax credit wrongly availed and
utilised, at such rate not exceeding twenty-four per cent. as may be notified by the
Government, on the recommendations of the Council, and the interest shall be
calculated, in such manner as may be prescribed.”.
14. Amendment of section 52.- In section 52 of the principal Act, in subsection
(6), in the proviso, for the words “due date for furnishing of statement for the
month of September”, the words “thirtieth day of November” shall be substituted.
15. Amendment of section 54.- In section 54 of the principal Act,-
(a) in sub-section (1), in the proviso, for the words and figures “the return
furnished under section 39 in such”, the words “such form and” shall be substituted;
(b) in sub-section (2), for the words “six months”, the words “two years” shall
be substituted;
(c) in sub-section (10), the words, brackets and figure “under sub-section(3)”
shall be omitted;
(d) in the Explanation, in clause (2), after sub-clause (b), the following subclause
shall be inserted, namely:-
“(ba) in case of zero-rated supply of goods or services or both to a Special
Economic Zone developer or a Special Economic Zone unit where a refund of tax paid
is available in respect of such supplies themselves, or as the case may be, the inputs
or input services used in such supplies, the due date for furnishing of return under
section 39 in respect of such supplies;”.
16. Amendment of Notification issued under section 146 of the principal
Act read with section 20 of Integrated Goods and Services Tax Act,
retrospectively.-
(1) The Notification (06/2018) No. FD 47 CSL 2017, Bengaluru, dated the 23rd
January, 2018, issued by the Government of Karnataka, on the recommendations of
the Council, under section 146 of the Karnataka Goods and Services Tax Act, 2017
read with section 20 of the Integrated Goods and Services Tax Act, 2017, shall stand
amended and shall be deemed to have been amended retrospectively, in the manner
specified in column (2) of the First Schedule, on and from the date specified in column
(3) of that Schedule.
(2) For the purpose of sub-section (1), the Government of Karnataka shall have
and shall be deemed to have the power to amend the notification referred to in the said
sub-section with retrospective effect as if the Government of Karnataka had the power
to amend the said notification under section 146 of the Karnataka Goods and Services
Tax Act, 2017 read with section 20 of the Integrated Goods and Services Tax Act,
2017, retrospectively, at all material times.
17. Amendment of notification issued under sub-sections (1) and (3) of
section 50, sub-section (12) of section 54 and section 56 of the principal Act,
retrospectively.-
(1) The notification (13/2017) No. FD 47 CSL 2017, dated: 29th June 2017,
issued by Government of Karnataka, on the recommendations of the Council, under
sub-sections (1) and (3) of section 50, sub-section (12) of section 54 and section 56 of
the Karnataka Goods and Service Tax Act, 2017, shall stand amended and shall be
deemed to have been amended retrospectively, in the manner specified in column (2) of
the Second Schedule, on and from the date specified in column (3) of that Schedule.
(2) For the purposes of sub-section (1), the Government of Karnataka shall have
and shall be deemed to have the power to amend the notification referred to in the
sub-section with retrospective effect as if the Government of Karnataka had the power
to amend the said notification under sub-sections (1) and (3) of section 50, sub-section
(12) of section 54 and section 56 of the Karnataka Goods and Services Tax Act, 2017,
retrospectively, at all material times.
18.Retrospective exemption from, or levy or collection of, state tax in
certain cases.-
(1) Notwithstanding anything contained in the Notification (01/2017) No. FD 48
CSL 2017,dated the 29th June, 2017 issued by the Government of Karnataka, on the
recommendations of the Council, in exercise of the powers under sub-section (1) of
section 9 of the Karnataka Goods and Services Tax Act, 2017, no State tax shall be
levied or collected in respect of supply of unintended waste generated during the
production of fish meal (falling under heading 2301), except for fish oil, during the
period commencing from the 1st day of July, 2017 and ending with the 30th day of
September, 2019 (both days inclusive).
(2) No refund shall be made of all such tax which has been collected, but which
would not have been so collected, had sub-section (1) been in force at all material
times.
19. Retrospective effect to Notification issued under sub-section (2) of
section 7 of the principal Act.-
(1) Subject to the provisions of sub-section (2) of section 7 of the principal Act,
the Notification (25/2019) No. FD 48 CSL 2017, Bengaluru, dated the 30th September,
2019 issued by the Government of Karnataka, on the recommendations of the Council,
in exercise of the powers under sub-section (2) of section 7 of the Karnataka Goods
and Services Tax Act, 2017, shall be deemed to have, and always to have, for all
purposes, come into force on and from the 1st day of July, 2017.
(2) No refund shall be made of all such state tax which has been collected, but
which would not have been so collected, had the notification referred to in sub-section
(1) been in force at all material times.
THE FIRST SCHEDULE
[See section 16(1)]
Notification number
and date
Amendment Date of effect of
Amendment
(1)
(2) (3)
Notification
(06/2018) No. FD 47
CSL 2017, Bengaluru ,
dated the 23rd
January, 2018
In the said notification, in paragraph
1, for the words “furnishing of returns and
computation and settlement of integrated
tax”, the following shall be substituted,
namely:-
“furnishing of returns and
computation and settlement of Integrated
tax and save as otherwise provided in the
Notification (23/2019) No. FD 47 CSL
2017, dated the 21st December, 2019, all
functions provided under the Karnataka
Goods and Services Tax Rules, 2017.”.
28th
June, 2017.
THE SECOND SCHEDULE
[See section 17(1)]
Notification number and
date
Amendment Date of effect
of
amendment
(1)
(2) (3)
Notification (13/2017)
No. FD 47 CSL 2017,
Bengaluru, dated the
29th June, 2017
In the said notification, in the
Table, against serial number 2, in
column(3), for the figures “24”, the
figures “18” shall be substituted.
1st July,
2017.
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