THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

Sec 49-Payment of tax, interest, penalty and other amounts

49.(1) Every deposit made towards tax, interest, penalty, fee or any other amount
by a person by internet banking or by using credit or debit cards or National
Electronic Fund Transfer or Real Time Gross Settlement or by such other mode
and subject to such conditions and restrictions as may be prescribed, shall be
credited to the electronic cash ledger of such person to be maintained in such
manner as may be prescribed.
(2) The input tax credit as self-assessed in the return of a registered person shall be
credited to his electronic credit ledger, in accordance with section 41, to be
maintained in such manner as may be prescribed.

(3) The amount available in the electronic cash ledger may be used for making any
payment towards tax, interest, penalty, fees or any other amount payable under the
provisions of this Act or the rules made thereunder in such manner and subject to
such conditions and within such time as may be prescribed.

(4) The amount available in the electronic credit ledger may be used for making
any payment towards output tax under this Act or under the Integrated Goods and
Services Tax Act in such manner and subject to such conditions and within such
time as may be prescribed.

(5) The amount of input tax credit available in the electronic credit ledger of the
registered person on account of––

(a) integrated tax shall first be utilised towards payment of integrated tax and the
amount remaining, if any, may be utilised towards the payment of central tax and
State tax, or as the case may be, Union territory tax, in that order;

(b) the central tax shall first be utilised towards payment of central tax and the
amount remaining, if any, may be utilised towards the payment of integrated tax;

(c) the State tax shall first be utilised towards payment of State tax and the amount
remaining, if any, may be utilised towards payment of integrated tax;
(d) the Union territory tax shall first be utilised towards payment of Union territory
tax and the amount remaining, if any, may be utilised towards payment of
integrated tax;
(e) the central tax shall not be utilised towards payment of State tax or Union
territory tax; and

(f) the State tax or Union territory tax shall not be utilised towards payment of
central tax.

(6) The balance in the electronic cash ledger or electronic credit ledger after
payment of tax, interest, penalty, fee or any other amount payable under this Act or
the rules made thereunder may be refunded in accordance with the provisions of
section 54.

(7) All liabilities of a taxable person under this Act shall be recorded and
maintained in an electronic liability register in such manner as may be prescribed.

(8) Every taxable person shall discharge his tax and other dues under this Act or
the rules made thereunder in the following order, namely:––

(a) self-assessed tax, and other dues related to returns of previous tax periods; (b)
self-assessed tax, and other dues related to the return of the current tax period;

(c) any other amount payable under this Act or the rules made thereunder including
the demand determined under section 73 or section 74.

(9) Every person who has paid the tax on goods or services or both under this Act
shall, unless the contrary is proved by him, be deemed to have passed on the full
incidence of such tax to the recipient of such goods or services or both.

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

(a) the date of credit to the account of the Government in the authorised bank shall
be deemed to be the date of deposit in the electronic cash ledger;

(b) the expression,—

(i) “tax dues” means the tax payable under this Act and does not include interest,
fee and penalty; and

(ii) “other dues” means interest, penalty, fee or any other amount payable under
this Act or the rules made thereunder.
 THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

Sec 50-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 per cent., as may be notified by the Government on the
recommendations of the Council

(2) The interest under sub-section (1) shall be calculated, in such manner as may
be prescribed, from the day succeeding the day on which such tax was due to be
paid.

(3) A taxable person who makes an undue or excess claim of input tax credit under
sub-section (10) of section 42 or undue or excess reduction in output tax liability
under sub-section (10) of section 43, shall pay interest on such undue or excess
claim or on such undue or excess reduction, as the case may be, at such rate not
exceeding twenty-four per cent., as may be notified by the Government on the
recommendations of the Council.
 THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

Sec 51- Tax deduction at source

51.(1) Notwithstanding anything to the contrary contained in this Act, the
Government may mandate,––
(a) a department or establishment of the Central Government or
State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the
Government on the recommendations of the Council,
(hereafter in this section referred to as “the deductor”), to deduct tax at the rate of
one per cent. from the payment made or credited to the supplier (hereafter in this
section referred to as “the deductee”) of taxable goods or services or both, where
the total value of such supply, under a contract, exceeds two lakh and fifty
thousand rupees:
Provided that no deduction shall be made if the location of the supplier and the
place of supply is in a State or Union territory which is different from the State or
as the case may be, Union territory of registration of the recipient.
Explanation.––For the purpose of deduction of tax specified above,
the value of supply shall be taken as the amount excluding the central tax,
State tax, Union territory 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 days period until the
failure is rectified, subject to a maximum amount of five thousand rupees.
 (5) The deductee shall claim credit, in his electronic cash ledger, of the tax
deducted and reflected in the return of the deductor furnished under sub-section (3)
of section 39, in such manner as may be prescribed.
(6) If any deductor fails to pay to the Government the amount deducted as tax
under sub-section (1), he shall pay interest in accordance with the provisions of
sub-section (1) of section 50, in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made in
the manner specified in section 73 or section 74.
(8) The refund to the deductor or the deductee arising on account of excess or
erroneous deduction shall be dealt with in accordance with the provisions of
section 54:
Provided that no refund to the deductor shall be granted, if the amount
deducted has been credited to the electronic cash ledger of the deductee.
 THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

Sec 52- 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 per cent., as may be notified by the Government on the
recommendations of the Council, of the net value of taxable supplies made through
it by other suppliers where the consideration with respect to such supplies is to be
collected by the operator.
Explanation.––For the purposes of this sub-section, the expression “net value of
taxable supplies” shall mean the aggregate value of taxable supplies of goods or
services or both, other than services notified under sub-section (5) of section 9,
made during any month by all registered persons through the operator reduced by
the aggregate value of taxable supplies returned to the suppliers during the said
month.
(2) The power to collect the amount specified in sub-section (1) shall be without
prejudice to any other mode of recovery from the operator.

(3) The amount collected under sub-section (1) shall be paid to the Government by
the operator within ten days after the end of the month in which such collection is
made, in such manner as may be prescribed.
(4) Every operator who collects the amount specified in sub-section (1) shall
furnish a statement, electronically, containing the details of outward supplies of
goods or services or both effected through it, including the supplies of goods or
services or both returned through it, and the amount collected under sub-section (1)
during a month, in such form and manner as may be prescribed, within ten days
after the end of such month.

(5) Every operator who collects the amount specified in sub-section (1) shall
furnish an annual statement, electronically, containing the details of outward
supplies of goods or services or both effected through it, including the supplies of
goods or services or both returned through it, and the amount collected under the
said sub-section during the financial year, in such form and manner as may be
prescribed, before the thirty first day of December following the end of such
financial year.
(6) If any operator after furnishing a statement under sub-section (4) discovers any
omission or incorrect particulars therein, other than as a result of scrutiny, audit,
inspection or enforcement activity by the tax authorities, he shall rectify such
omission or incorrect particulars in the statement to be furnished for the month
during which such omission or incorrect particulars are noticed, subject to payment
of interest, as specified in sub-section (1) of section 50:

Provided that no such rectification of any omission or incorrect particulars shall be

allowed after the due date for furnishing of statement for the month of September
following the end of the financial year or the actual date of furnishing of the
relevant annual statement, whichever is earlier.

(7) The supplier who has supplied the goods or services or both through the
operator shall claim credit, in his electronic cash ledger, of the amount collected
and reflected in the statement of the operator furnished under 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 inhis statement for the month in which discrepancy is communicated,
shall be added to the output tax liability of the said supplier, where the value of
outward supplies furnished by the operator is more than the value of outward
supplies furnished by the supplier, in his return for the month succeeding the
month in which the discrepancy is communicated in such manner as may be
prescribed

(11) The concerned supplier, in whose output tax liability any amount has been
added under sub-section
(10), shall pay the tax payable in respect of such supply along with interest, at the
rate specified under sub-section (1) of section 50 on the amount so added from the
date such tax was due till the date of its payment.

(12) Any authority not below the rank of Deputy Commissioner may serve a
notice, either before or during the course of any proceedings under this Act,
requiring the operator to furnish such details relating to—
(a) supplies of goods or services or both effected through such operator
during any period; or
(b) stock of goods held by the suppliers making supplies through such
operator in the godowns or warehouses, by whatever name called, managed by
such operator and declared as additional places of business by such suppliers,

as may be specified in the notice.

(13) Every operator on whom a notice has been served under sub-section (12) shall
furnish the required information within fifteen working days of the date of service
of such notice.

(14) Any person who fails to furnish the information required by the notice served
under sub-section (12) shall, without prejudice to any action that may be taken
under section 122, be liable to a penalty which may extend to twenty-five thousand
rupees.

Explanation.—For the purposes of this section, the expression “concerned

supplier” shall mean the supplier of goods or services or both making supplies
through the operator
 THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

Sec 53-Transfer of input tax credit.
53.On utilisation of input tax credit availed under this Act for payment of tax dues
under the Integrated Goods and Services Tax Act in accordance with the
provisions of sub-section (5) of section 49, as reflected in the valid return furnished
under sub-section (1) of section 39, the amount collected as central tax shall stand
reduced by an amount equal to such credit so utilised and the Central Government
shall transfer an amount equal to the amount so reduced from the central tax
account to the integrated tax account in such manner and within such time as may
be prescribed.