Compiled and Updated

By

Harilal Prajapati
Joint Commissioner (GST), State Tax
Uttar Pradesh

Paritosh Kumar Mishra

Deputy Commissioner (GST), State Tax
Commercial Tax, Uttar Pradesh

In Association with

NTN
NATIONAL LAW BOOK PUBLICATIONS
B-2, Modern Plaza Building, Ambedkar Road, Ghaziabad-201001
email : [email protected]
website : www.gstlawsindia.com

DISCLAIMER :
The text provided here is only for information purposes. Please compare text
with original Gazette notification for legal purposes.
 4. Vibhuti Khand,
Gomti Nagar
Lucknow -226010
: 0522-2721147/49
Fax : 0522-2721167
E-mail :
Ministhy S : ctcomhqlu [email protected]
I.A.S. :[email protected]
Commissioner
State Taxes
Uttar Pradesh

{ Do. No: .............. Date ...............

MESSAGE

The UPGST Act was implemented on 1st July, 2017. Since its inception, till
date, various amendments in the Act have been incorporated through
Amendment Acts, Ordinances and RoDs ( Removal of Difficulty Orders ) to
address the public grievances and make the procedure more taxpayer
friendly.

Despite being a mirror image of CGST Act, UPGST Act has its own elements
which makes it slightly distinct from the CGST Act. Although many updated
versions of CGST Act are available, but not for UPGST Act.

There have been frequent changes in the GST Act in the past few years. Being
an ongoing process, the regular updation and compilation ( along with past
history ) of the Act had been the need of the hour. With his updated edition,
the said requirement has been fulfilled.

The hefty work of updation and compilation of the UPGST Act has been
carried out successfully by Mr. Harilal Prajapati, Joint Commissioner (GST),
State Tax, UP and Mr. Paritosh Kumar Mishra, Deputy Commissioner (GST),
State Tax, UP in association with NTN.

I hope that this tradition will be carried on in the future also.

I strongly believe that this version will be useful for all the Departmental
Officers and other Stakeholders.

(Ministhy S.)

Commissioner, State Tax

U.P.

19 March, 2024
 FOREWORD

Keeping pace with the ongoing amendments in the UPGST Act, the State
Tax headquarters has come up with his compiled and updated version of
the UPGST Act.

I am highly grateful to Smt. Ministhy S., Commissioner, State Tax,

U.P for her encouragement and support. I highly appreciate the hard
work and dedication put in by Mr. Paritosh Kumar Mishra, Deputy
Commissioner (GST), State Tax, UP and Ms. Nidhi Srivastava,
Assistant Commissioner (GST), State Tax, UP and the co-operation
extended by NTN in making this monumental task possible.

I sincerely hope that this edition would be immensely useful for all our
Departmental Colleagues and other Stakeholders.

Harilal Prajapati
Joint Commissioner (GST), State Tax
Uttar Pradesh

Paritosh Kumar Mishra

Deputy Commissioner (GST), State Tax
Commercial Tax, Uttar Pradesh
2022 Contents I

THE UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017

(U.P. Act No. 1 to 2017)

CHAPTER I
PRELIMINARY

Section 1 Short title, extent and commencement 01

Section 2 Definitions 01

2(1) Actionable claim 01

2(2) Address of delivery 01

2(3) Address on record 01

2(4) Adjudicating authority 02

2(5) Agent 02

2(6) Aggregate turnover 02

2(7) Agriculturist 02

2(8) Appellate Authority 03

2(9) Appellate Tribunal 03

2(10) Appointed day 03

2(11) Assessment 03

2(12) Associated enterprises 03

2(13) Audit 03

2(14) Authorised bank 03

2(15) Authorised representative 03

2(16) Board 04

2(17) Business 04

2(18) Omitted 05

2(19) Capital goods 05

2(20) Casual taxable person 05

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2022 Contents II

2(21) Central tax 05

2(22) Cess 05

2(23) Chartered accountant 05

2(24) Commissioner 06

2(25) Commissioner in the Board 06

2(26) Common portal 06

2(27) Common working days 06

2(28) Company secretary 06

2(29) Competent authority 06

2(30) Composite supply 06

2(31) Consideration 07

2(32) Continuous supply of goods 07

2(33) Continuous supply of services 07

2(34) Conveyance 07

2(35) Cost accountant 08

2(36) Council 08

2(37) Credit note 08

2(38) Debit note 08

2(39) Deemed exports 08

2(40) Designated authority 08

2(41) Document 08

2(42) Drawback 08

2(43) Electronic cash ledger 09

2(44) Electronic commerce 09

2(45) Electronic commerce operator 09

2(46) Electronic credit ledger 09

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2022 Contents III

2(47) Exempt supply 09

2(48) Existing law 09

2(49) Family 09

2(50) Fixed establishment 10

2(51) Fund 10

2(52) Goods 10

2(53) Government 10

2(54) Goods and Services Tax (Compensation to 10

States) Act

2(55) Goods and services tax practitioner 10

2(56) India 10

2(57) Integrated Goods and Services Tax Act 10

2(58) Integrated tax 11

2(59) Input 11

2(60) Input service 11

2(61) Input Service Distributor 11

2(62) Input tax 11

2(63) Input tax credit 11

2(64) Intra-State supply of goods 12

2(65) Intra-State supply of services 12

2(66) Invoice or tax invoice 12

2(67) Inward supply 12

2(68) Job work 12

2(69) Local authority 12

2(70) Location of the recipient of services 13

2(71) Location of the supplier of services 13

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2022 Contents IV

2(72) Manufacture 13

2(73) Market value 14

2(74) Mixed supply 14

2(75) Money 14

2(76) Motor vehicle 14

2(77) Non-resident taxable person 14

2(78) Non-taxable supply 14

2(79) Non-taxable territory 15

2(80) Notification 15

2(80A) online gaming 15

2(80B) online money gaming 15

2(81) Other territory 15

2(82) Output tax 15

2(83) Outward supply 15

2(84) Person 15

2(85) Place of business 16

2(86) Place of supply 16

2(87) Prescribed 16

2(88) Principal 17

2(89) Principal place of business 17

2(90) Principal supply 17

2(91) Proper officer 17

2(92) Quarter 17

2(93) Recipient 17

2(94) Registered person 17

2(95) Regulations 18

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2022 Contents V

2(96) Removal 18

2(97) Return 19

2(98) Reverse charge 19

2(99) Revisional Authority 19

2(100) Schedule 19

2(101) Securities 19

2(102) Services 19

2(102A) Specified actionable claim 19

2(103) State 20

2(104) State tax 20

2(105) Supplier 20

2(106) Tax period 20

2(107) Taxable person 20

2(108) Taxable supply 21

2(109) Taxable territory 21

2(110) Telecommunication service 21

2(111) The Central Goods and Services Tax Act 21

2(112) Turnover in State or turnover in Union 21

territory

2(113) Usual place of residence 21

2(114) Union territory 21

2(115) Union territory tax 22

2(116) Union Territory Goods and Services Tax 22

Act

2(117) Valid return 22

2(117A) Virtual digital asset 22

2(118) Voucher 22

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2022 Contents VI

2(119) Works contract 22

2(120) Words and expressions used 23

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2022 Contents VII

CHAPTER II
ADMINISTRATION

Section 3 Officers under this Act 24

Section 4 Appointment of officers 24

Section 5 Powers of officers 24

Section 6 Authorisation of officers of central tax as proper 25

officer in certain circumstances

CHAPTER III
LEVY AND COLLECTION OF TAX

Section 7 Scope of supply 26

Section 8 Tax liability on composite and mixed supplies 27

Section 9 Levy and collection 27

Section 10 Composition levy 28

Section 11 Power to grant exemption from tax 32

CHAPTER IV
TIME AND VALUE OF SUPPLY

Section 12 Time of supply of goods 33

Section 13 Time of supply of services 34

Section 14 Change in rate of tax in respect of supply of 35

goods or services

Section 15 Value of taxable supply 36

CHAPTER V
INPUT TAX CREDIT

Section 16 Eligibility and conditions for taking input tax 39

credit

Section 17 Apportionment of credit and blocked credits 42

Section 18 Availability of credit in special circumstances 45

Section 19 Taking input tax credit in respect of inputs and 47

capital goods sent for job work

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2022 Contents VIII

Section 20 Manner of distribution of credit by Input 47

Service Distributor

Section 21 Manner of recovery of credit distributed in 48

excess

CHAPTER - VI
REGISTRATION

Section 22 Persons liable for registration 50

Section 23 Persons not liable for registration 51

Section 24 Compulsory registration in certain cases 51

Section 25 Procedure for registration 52

Section 26 Deemed registration 55

Section 27 Special provisions relating to casual taxable 55

person and non-resident taxable person

Section 28 Amendment of registration 57

Section 29 Cancellation or suspension of registration 57

Section 30 Revocation of cancellation of registration 60

CHAPTER- VII
TAX INVOICE, CREDIT AND DEBIT NOTES

Section 31 Tax invoice 61

Section 31A Facility of digital payment to recipient. 63

Section 32 Prohibition of unauthorised collection of tax 63

Section 33 Amount of tax to be indicated in tax invoice and 63

other documents

Section 34 Credit and debit notes 63

CHAPTER VIII
ACCOUNTS AND RECORDS

Section 35 Accounts and other records 65

Section 36 Period of retention of accounts 66

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2022 Contents IX

CHAPTER- IX
RETURNS

Section 37 Furnishing details of outward supplies 67

Section 38 Communication of details of inward supplies 69

and input tax credit

Section 39 Furnishing of returns 70

Section 40 First return 74

Section 41 Availment of input tax credit 74

Section 42 Omitted 75

Section 43 Omitted 75

Section 43A Omitted 76

Section 44 Annual return 77

Section 45 Final return 79

Section 46 Notice to return defaulters 79

Section 47 Levy of late fee 79

Section 48 Goods and services tax practitioners 79

CHAPTER-X
PAYMENT OF TAX

Section 49 Payment of tax, interest, penalty and other 81

amounts

Section 49A Utilisation of input tax credit subject to certain 83

conditions

Section 49B Order of utilization of input tax credit 83

Section 50 Interest on delayed payment of tax 84

Section 51 Tax deduction at source 84

Section 52 Collection of tax at source 86

Section 53 Transfer of input tax credit 88

Section 53A Transfer of certain amounts 89

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2022 Contents X

CHAPTER XI
REFUNDS

Section 54 Refund of tax 90

Section 55 Refund in certain cases 94

Section 56 Interest on delayed refunds 94

Section 57 Consumer Welfare Fund 95

Section 58 Utilisation of Fund 95

CHAPTER- XII
ASSESSMENT

Section 59 Self assessment 96

Section 60 Provisional assessment 96

Section 61 Scrutiny of returns 96

Section 62 Assessment of non-filers of returns 97

Section 63 Assessment of unregistered persons 97

Section 64 Summary assessment in certain special cases 98

CHAPTER XIII
AUDIT

Section 65 Audit by tax authorities 99

Section 66 Special audit 99

CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST

Section 67 Power of inspection, search and seizure 101

Section 68 Inspection of goods in movement 103

Section 69 Power to arrest 103

Section 70 Power to summon persons to give evidence and 103

produce documents

Section 71 Access to business premises 104

Section 72 Officers to assist proper officers 104

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2022 Contents XI

CHAPTER XV
DEMANDS AND RECOVERY

Section 73 Determination of tax not paid or short paid or 105

erroneously refunded or input tax credit
wrongly availed or utilised for any reason other
than fraud or any wilful misstatement or
suppression of facts

Section 74 Determination of tax not paid or short paid or 106

erroneously refunded or input tax credit
wrongly availed or utilised by reason of fraud or
any wilful misstatement or suppression of facts

Section 75 General provisions relating to determination of 107

tax

Section 76 Tax collected but not paid to Government 109

Section 77 Tax wrongfully collected and paid to Central 110

Government or State Government

Section 78 Initiation of recovery proceedings 110

Section 79 Recovery of tax 110

Section 80 Payment of tax and other amount in 112

instalments

Section 81 Transfer of property to be void in certain cases 113

Section 82 Tax to be first charge on property 113

Section 83 Provisional attachment to protect revenue in 113

certain cases

Section 84 Continuation and validation of certain recovery 113

proceedings

CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES

Section 85 Liability in case of transfer of business 115

Section 86 Liability of agent and principal 115

Section 87 Liability in case of amalgamation or merger of 115

companies

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2022 Contents XII

Section 88 Liability in case of company in liquidation 115

Section 89 Liability of directors of private company 116

Section 90 Liability of partners of firm to pay tax 116

Section 91 Liability of guardians, trustees, etc 117

Section 92 Liability of Court of Wards, etc 117

Section 93 Special provisions regarding liability to pay tax, 117

interest or penalty in certain cases

Section 94 Liability in other cases 118

CHAPTER XVII
ADVANCE RULING

Section 95 Definitions 120

95(a) Advance Ruling 120

95(b) Appellate Authority 120

95(c) Applicant 120

95(d) Application 120

95(e) Authority 120

95(f) National Appellate Authority 120

Section 96 Constitution of Authority for Advance Ruling 121

Section 97 Application for advance ruling 121

Section 98 Procedure on receipt of application 121

Section 99 Constitution of Appellate Authority for Advance 122

Ruling

Section 100 Appeal to the Appellate Authority 122

Section 101 Orders of Appellate Authority 123

Section 101A Constitution of National Appellate Authority for 123

Advance Ruling

Section 101B Appeal to National Appellate Authority 123

Section 101C Order of National Appellate Authority 124

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2022 Contents XIII

Section 102 Rectification of advance ruling 124

Section 103 Applicability of advance ruling 125

Section 104 Advance ruling to be void in certain 126

circumstances

Section 105 Powers of Authority, Appellate Authority and 126

National Appellate Authority

Section 106 Procedure of Authority, Appellate Authority and 127

National Appellate Authority

CHAPTER-XVIII
APPEALS AND REVISION

Section 107 Appeals to Appellate Authority 128

Section 108 Powers of Revisional Authority 130

Section 109 Appellate Tribunal 131

Section 110 Omitted 131

Section 111 Procedure before Appellate Tribunal 131

Section 112 Appeals to Appellate Tribunal 132

Section 113 Orders of Appellate Tribunal 134

Section 114 Omitted 136

Section 115 Interest on refund of amount paid for admission 136

of appeal

Section 116 Appearance by authorised representative 136

Section 117 Appeal to High Court 137

Section 118 Appeal to Supreme Court 138

Section 119 Sums due to be paid notwithstanding appeal, 139

etc

Section 120 Appeal not to be filed in certain cases 139

Section 121 Non appealable decisions and orders 140

CHAPTER XIX
OFFENCES AND PENALTIES

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2022 Contents XIV

Section 122 Penalty for certain offences 141

Section 123 Penalty for failure to furnish information return 143

Section 124 Fine for failure to furnish statistics 143

Section 125 General penalty 144

Section 126 General disciplines related to penalty 144

Section 127 Power to impose penalty in certain cases 144

Section 128 Power to waive penalty or fee or both 145

Section 129 Detention, seizure and release of goods and 145

conveyances in transit

Section 130 Confiscation of goods or conveyances and levy 147

of penalty

Section 131 Confiscation or penalty not to interfere with 148

other punishments

Section 132 Punishment for certain offences 149

Section 133 Liability of officers and certain other persons 151

Section 134 Cognizance of offences 151

Section 135 Presumption of culpable mental state 152

Section 136 Relevancy of statements under certain 152

circumstances

Section 137 Offences by companies 152

Section 138 Compounding of offences 153

CHAPTER XX
TRANSITIONAL PROVISIONS

Section 139 Migration of existing taxpayers 155

Section 140 Transitional arrangements for input tax credit 155

Section 141 Transitional provisions relating to job work 158

Section 142 Miscellaneous transitional provisions 159

CHAPTER XXI
MISCELLANEOUS

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2022 Contents XV

Section 143 Job work procedure 163

Section 144 Presumption as to documents in certain cases 164

Section 145 Admissibility of micro films, facsimile copies of 165

documents and computer printouts as documents
and as evidence

Section 146 Common Portal 165

Section 147 Deemed exports 165

Section 148 Special procedure for certain processes 166

Section 149 Goods and services tax compliance rating 166

Section 150 Obligation to furnish information return 166

Section 151 Power to collect statistics 167

Section 152 Bar on disclosure of information 168

Section 153 Taking assistance from an expert 168

Section 154 Power to take samples 168

Section 155 Burden of proof 168

Section 156 Persons deemed to be public servants 169

Section 157 Protection of action taken under this Act 169

Section 158 Disclosure of information by a public servant 169

Section 159 Publication of information in respect of persons 171

in certain cases

Section 160 Assessment proceedings, etc., not to be invalid on 171

certain grounds

Section 161 Rectification of errors apparent on the face of 172

record

Section 162 Bar on jurisdiction of civil courts 172

Section 163 Levy of fee 172

Section 164 Power of Government to make rules 172

Section 165 Power to make regulations 173

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2022 Contents XVI

Section 166 Laying of rules, regulations and notifications 173

Section 167 Delegation of powers 173

Section 168 Power to issue instructions or directions 173

Section 168A Power of Government to Extend Time in Special 173

Circumstances

Section 169 Service of notice in certain circumstances 174

Section 170 Rounding off of tax, etc 174

Section 171 Anti profiteering measure 175

Section 172 Removal of difficulties 175

Section 173 Amendment of certain Acts 176

Section 174 Repeal and saving 176

Schedule-I Activities to be treated as supply even if made 178

without consideration

Schedule-II Activities or transactions to be treated as supply 179

of goods or supply of services

Schedule-III Activities or transactions which shall be treated 182

neither as a supply of goods nor a supply of
services

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 1

THE UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017

(U.P. Act No. 1 to 2017)1
AN
ACT
to make a provision for levy and collection of tax on intra-State supply of
goods or services or both by the State of Uttar Pradesh and the matters
connected therewith or incidental thereto.
It is hereby enacted in the Sixty-eight Year of the Republic of India as follows:-
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement -
(1) This Act may be called the Uttar Pradesh Goods and Services Tax Act,
2017.
(2) It extends to the whole of the Uttar Pradesh
(3) It shall come into force on such date as the State Government may, by
notification in the Official Gazette, appoint:
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.
2. Definitions -
In this Act, unless the context otherwise requires,-
2(1). "actionable claim"
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 (4 of 1882);
2(2). "address of delivery"
In this Act, unless the context otherwise requires,-
(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;
2(3). "address on record"
In this Act, unless the context otherwise requires,-
(3). "address on record" means the address of the recipient as available in
the records of the supplier;

1.Passed by the Uttar Pradesh Legislature and assented to by the Governor on May 18, 2017,
published in the U.P. Gazette Extra-ordinary under Noti. No. 897(2)/LXXIX-V-1-17-1(ka)-1-17,
Dated : Lucknow : May 19, 2017.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 2

2(4). "adjudicating authority"

In this Act, unless the context otherwise requires,-
(4). "adjudicating authority" means any authority, appointed or authorised
to pass any order or decision under this Act, but does not include the
Commissioner, Revisional Authority, the Authority for Advance Ruling, the
Appellate Authority for Advance Ruling, [the National Appellate Authority for
Advance Ruling]2, [the Appellate Authority, the Appellate Tribunal and the
Authority referred to in sub-section (2) of Section 171.]3
2(5). "agent"
In this Act, unless the context otherwise requires,-
(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;
2(6). "aggregate turnover"
In this Act, unless the context otherwise requires,-
(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;
2(7). "agriculturist"
In this Act, unless the context otherwise requires,-
(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;

2.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.
5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
3. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act

No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "the Appellate Authority and the
Appellate Tribunal".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 3

2(8). "Appellate Authority"

In this Act, unless the context otherwise requires,-
(8). "Appellate Authority" means an authority appointed or authorised to
hear appeals as referred to in section 107;
2(9). "Appellate Tribunal"
In this Act, unless the context otherwise requires,-
(9). "Appellate Tribunal" means the Goods and Services Tax Appellate
Tribunal referred to in section 109;
2(10). "appointed day"
In this Act, unless the context otherwise requires,-
(10). "appointed day" means the date on which the provisions of this Act
shall come into force;
2(11). "assessment"
In this Act, unless the context otherwise requires,-
(11). "assessment" means determination of tax liability under this Act and
includes self-assessment, re-assessment, provisional assessment, summary
assessment and best judgement assessment;
2(12). "associated enterprises"
In this Act, unless the context otherwise requires,-
(12). "associated enterprises" shall have the same meaning as assigned to it
in section 92A of the Income-tax Act, 1961 (43 of 1961);
2(13). "audit"
In this Act, unless the context otherwise requires,-
(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 there under 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 there under;
2(14). "authorised bank"
In this Act, unless the context otherwise requires,-
(14). "authorised bank" shall mean a bank or a branch of a bank authorised
by the Central Government to collect the tax or any other amount payable
under this Act;
2(15). "authorised representative"
In this Act, unless the context otherwise requires,-
(15). "authorised representative" means the representative as referred to
under section 116;

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 4

2(16). "Board"
In this Act, unless the context otherwise requires,-
(16). "Board" means the [Central Board of Indirect Taxes and Customs]4
constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);
2(17). "business"
In this Act, unless the context otherwise requires,-
(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 an office which has
been accepted by him in the course or furtherance of his trade,
profession or vocation;
[(h) activities of a race club including by way of totalisator or a license
to book maker or activities of a licensed book maker in such club,
and]5;
(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;

4. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act

No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "Central Board of Excise and
Customs".
5. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act

No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019. Prior to substitution clause reads as
under :-
"(h) services provided by a race club by way of totalisator or a licence to book maker in such
club; and"
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 5

2(18). [***]6
2(19). "capital goods"
In this Act, unless the context otherwise requires,-
(19). "capital goods" means goods, the value of which is capitalised 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;
2(20). "casual taxable person"
In this Act, unless the context otherwise requires,-
(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;
2(21). "central tax"
In this Act, unless the context otherwise requires,-
(21). "central tax" means the central goods and services tax levied under
section 9 of the Central Goods and Services Tax Act (Act No. 12 of 2017);
2(22). "cess"
In this Act, unless the context otherwise requires,-
(22). "cess" shall have the same meaning as assigned to it in the Goods and
Services Tax (Compensation to States) Act (Act No. 15 of 2017);
2(23). "chartered accountant"
In this Act, unless the context otherwise requires,-
(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 (Act No. 38 of 1949);

6. Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.

45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019. Prior to omission clause reads as under:-
"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;"
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 6

2(24). "Commissioner"
In this Act, unless the context otherwise requires,-
(24). "Commissioner" means the Commissioner of State tax appointed under
section 3 and includes the Chief Commissioner, Principal Commissioner,
special commissioner or additional commissioner of State tax appointed under
Section 3;
2(25). "Commissioner in the Board"
In this Act, unless the context otherwise requires,-
(25). "Commissioner in the Board" means the Commissioner referred to in
section 168 of the Central Goods and Services Tax Act (Act No. 12 of 2017);
2(26). "common portal"
In this Act, unless the context otherwise requires,-
(26). "common portal" means the common goods and services tax electronic
portal referred to in section 146;
2(27). "common working days"
In this Act, unless the context otherwise requires,-
(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 Uttar Pradesh;
2(28). "company secretary"
In this Act, unless the context otherwise requires,-
(28). "company secretary" means a company secretary as defined in clause
(c) of subsection (1) of section 2 of the Company Secretaries Act, 1980 (Act No.
56 of 1980);
2(29). "competent authority"
In this Act, unless the context otherwise requires,-
(29). "competent authority" means such authority as may be notified by the
Government;
2(30). "composite supply"
In this Act, unless the context otherwise requires,-
(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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 7

2(31). "consideration"
In this Act, unless the context otherwise requires,-
(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;
2(32). "continuous supply of goods"
In this Act, unless the context otherwise requires,-
(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;
2(33). "continuous supply of services"
In this Act, unless the context otherwise requires,-
(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;
2(34). "conveyance"
In this Act, unless the context otherwise requires,-
(34). "conveyance" includes a vessel, an aircraft and a vehicle;
2(35). "cost accountant"
In this Act, unless the context otherwise requires,-

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 8

(35). "cost accountant" means a cost accountant as defined in [clause (b)]7 of

sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 ( Act
No. 23 of 1959) ;
2(36). "Council"
In this Act, unless the context otherwise requires,-
(36). "Council" means the Goods and Services Tax Council established under
article 279A of the Constitution;
2(37). "credit note"
In this Act, unless the context otherwise requires,-
(37). "credit note" means a document issued by a registered person under
sub-section (1) of section 34;
2(38). "debit note"
In this Act, unless the context otherwise requires,-
(38). "debit note" means a document issued by a registered person under
sub section (3) of section 34;
2(39). "deemed exports"
In this Act, unless the context otherwise requires,-
(39). "deemed exports" means such supplies of goods as may be notified
under section 147;
2(40). "designated authority"
In this Act, unless the context otherwise requires,-
(40). "designated authority" means such authority as may be notified by the
Commissioner;
2(41). "document"
In this Act, unless the context otherwise requires,-
(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 ( Act No. 21 of 2000 ) ;
2(42). "drawback"
In this Act, unless the context otherwise requires,-
(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;

7.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "clause (c)".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 9

2(43). "electronic cash ledger"

In this Act, unless the context otherwise requires,-
(43). "electronic cash ledger" means the electronic cash ledger referred to in
subsection (1) of section 49;
2(44). "electronic commerce"
In this Act, unless the context otherwise requires,-
(44). "electronic commerce" means the supply of goods or services or both,
including digital products over digital or electronic network;
2(45). "electronic commerce operator"
In this Act, unless the context otherwise requires,-
(45). "electronic commerce operator" means any person who owns,
operates or manages digital or electronic facility or platform for electronic
commerce;
2(46). "electronic credit ledger"
In this Act, unless the context otherwise requires,-
(46). "electronic credit ledger" means the electronic credit ledger referred to
in subsection (2) of section 49;
2(47). "exempt supply"
In this Act, unless the context otherwise requires,-
(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, and
includes non-taxable supply (Act No. 13 of 2017);
2(48). "existing law"
In this Act, unless the context otherwise requires,-
(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;
2(49). "family"
In this Act, unless the context otherwise requires,-
(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;

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 10

2(50). "fixed establishment"

In this Act, unless the context otherwise requires,-
(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 services for its own needs;
2(51). "Fund"
In this Act, unless the context otherwise requires,-
(51). "Fund" means the Consumer Welfare Fund established under section
57;
2(52). "goods''
In this Act, unless the context otherwise requires,-
(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;
2(53). "Government"
In this Act, unless the context otherwise requires,-
(53). "Government" means the Government of Uttar Pradesh
2(54) "Goods and Services Tax (Compensation to States) Act"
In this Act, unless the context otherwise requires,-
(54) "Goods and Services Tax (Compensation to States) Act" means the
Goods and Services Tax (Compensation to States) Act, 2017;
2(55). "goods and services tax practitioner"
In this Act, unless the context otherwise requires,-
(55). "goods and services tax practitioner" means any person who has been
approved under section 48to act as such practitioner;
2(56). "India"
In this Act, unless the context otherwise requires,-
(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 (80 of 1976), and the air space
above its territory and territorial waters;
2(57). "Integrated Goods and Services Tax Act"
In this Act, unless the context otherwise requires,-
(57). "Integrated Goods and Services Tax Act" means the Integrated Goods
and Services Tax Act, 2017 (Act No. 13 of 2017);

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 11

2(58). "integrated tax"

In this Act, unless the context otherwise requires,-
(58). "integrated tax" means the integrated goods and services tax levied
under the Integrated Goods and Services Tax Act (Act No.13 of 2017);
2(59). "input"
In this Act, unless the context otherwise requires,-
(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;
2(60). "input service"
In this Act, unless the context otherwise requires,-
(60). "input service" means any service used or intended to be used by a
supplier in the course or furtherance of business;
2(61). "Input Service Distributor"
In this Act, unless the context otherwise requires,-
(61). "Input Service Distributor" means an office of the supplier of goods or
services or both which receives tax invoices issued under section 31 towards
the receipt of input services and issues 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;
2(62). "input tax"
In this Act, unless the context otherwise requires,-
(62). "input tax" in relation to a registered person, means the central tax,
State tax, integrated tax or Union territory 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-sections (3) and (4) of
section 5 of the Integrated Goods and Services Tax Act (Act No.13 of
2017); or
(d) the tax payable under the provisions of subsections (3) and (4) of
section 9 of the Central Goods and Services Tax Act (Act No.12 of
2017), but does not include the tax paid under the composition levy;
2(63). "input tax credit"
In this Act, unless the context otherwise requires,-
(63). "input tax credit" means the credit of input tax;

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 12

2(64). "intra-State supply of goods"

In this Act, unless the context otherwise requires,-
(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 (Act No. 13 of
2017);
2(65). "intra-State supply of services"
In this Act, unless the context otherwise requires,-
(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 (Act
No. 13 of 2017);
2(66). "invoice" or "tax invoice"
In this Act, unless the context otherwise requires,-
(66). "invoice" or "tax invoice" means the tax invoice referred to in section
31;
2(67). "inward supply"
In this Act, unless the context otherwise requires,-
(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;
2(68). "job work"
In this Act, unless the context otherwise requires,-
(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;
2(69). "local authority"
In this Act, unless the context otherwise requires,-
(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 Zilla 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 (Act No. 41 of 2006 );
(e) a Regional Council or a District Council constituted under the Sixth
Schedule to the Constitution;

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 13

(f) a Development Board constituted under article 371 [and article

371J]8 of the Constitution; or
(g) a Regional Council constituted under article 371A of the
Constitution;
2(70). "location of the recipient of services"
In this Act, unless the context otherwise requires,-
(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 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;
2(71). "location of the supplier of services"
In this Act, unless the context otherwise requires,-
(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 places, the location of the usual place of
residence of the supplier;
2(72). "manufacture"
In this Act, unless the context otherwise requires,-
(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;

8.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 14

2(73). "market value"

In this Act, unless the context otherwise requires,-
(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;
2(74). "mixed supply"
In this Act, unless the context otherwise requires,-
(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 are supplied separately;
2(75). "money"
In this Act, unless the context otherwise requires,-
(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;
2(76). "motor vehicle"
In this Act, unless the context otherwise requires,-
(76). "motor vehicle" shall have the same meaning as assigned to it in clause
(28) of section 2 of the Motor Vehicles Act, 1988 ( Act No. 59 of 1988);
2(77). "non-resident taxable person"
In this Act, unless the context otherwise requires,-
(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;
2(78). "non-taxable supply''
In this Act, unless the context otherwise requires,-
(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(Act No. 13 of 2017);

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2(79). "non-taxable territory"

In this Act, unless the context otherwise requires,-
(79). "non-taxable territory" means the territory which is outside the taxable
territory;
2(80). "notification"
In this Act, unless the context otherwise requires,-
(80). "notification" means a notification published in the Official Gazette and
the expressions 'notify' and 'notified' shall be construed accordingly;
[(80A) "online gaming" means offering of a game on the internet or an
electronic network and includes online money gaming;
(80B) "online money gaming" means online gaming in which players pay or
deposit money or money's worth, including virtual digital assets, in the
expectation of winning money or money's worth, including virtual digital
assets, in any event including game, scheme, competition or any other activity
or process, whether or not its outcome or performance is based on skill,
chance or both and whether the same is permissible or otherwise under any
other law for the time being in force;"]9
2(81). "other territory"
In this Act, unless the context otherwise requires,-
(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);
2(82). "output tax"
In this Act, unless the context otherwise requires,-
(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;
2(83). "outward supply"
In this Act, unless the context otherwise requires,-
(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;
2(84). "person"
In this Act, unless the context otherwise requires,-
(84). "person" includes,-
(a) an individual;

9. Inserted The Uttar Pradesh Goods And Services Tax (Second Amendment) Act, 2023 (U.P.
Act No. 19 Of 2023) Published Vide No. 579(2)/LXXIX-V-1–2023-1-ka-18-2023 Dated Lucknow,
December 8, 2023

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 16

(b) a Hindu Undivided Family;

(c) a company;
(d) a firm;
(e) a Limited Liability Partnership;
(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 ( Act No.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 (Act No.
21 of 1860 ) ;
(m) trust; and
(n) every artificial juridical person, not falling within any of the above;
2(85). "place of business"
In this Act, unless the context otherwise requires,-
(85). "place of business" includes,-
(a) a place from where the business is ordinarily carried on, and
includes a warehouse, a godown 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;
2(86). "place of supply"
In this Act, unless the context otherwise requires,-
(86). "place of supply" means the place of supply as referred to in Chapter V
of the Integrated Goods and Services Tax Act (Act No. 13 of 2017);
2(87). "prescribed"
In this Act, unless the context otherwise requires,-
(87). "prescribed" means prescribed by rules made under this Act on the
recommendations of the Council;

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 17

2(88). "principal"
In this Act, unless the context otherwise requires,-
(88). "principal" means a person on whose behalf an agent carries on the
business of supply or receipt of goods or services or both;
2(89). "principal place of business"
In this Act, unless the context otherwise requires,-
(89). "principal place of business" means the place of business specified as
the principal place of business in the certificate of registration;
2(90). "principal supply"
In this Act, unless the context otherwise requires,-
(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;
2(91). "proper officer"
In this Act, unless the context otherwise requires,-
(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;
2(92). "quarter"
In this Act, unless the context otherwise requires,-
(92). "quarter" shall mean a period comprising three consecutive calendar
months, ending on the last day of March, June, September and December of a
calendar year;
2(93). "recipient"
In this Act, unless the context otherwise requires,-
(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 shall 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;
2(94). "registered person"
In this Act, unless the context otherwise requires,-

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 18

(94). "registered person" means a person who is registered under section

25but does not include a person having a Unique Identity Number.
2(95). "regulations"
In this Act, unless the context otherwise requires,-
(95). "regulations" means the regulations made by the Government under
this Act on the recommendations of the Council;
2(96). "removal''
In this Act, unless the context otherwise requires,-
(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;

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 19

2(97). "return"
In this Act, unless the context otherwise requires,-
(97). "return" means any return prescribed or otherwise required to be
furnished by or under this Act or the rules made there under;
2(98). "reverse charge''
In this Act, unless the context otherwise requires,-
(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 subsection (3) or subsection (4) of section 9,or under sub-
section (3) or sub-section (4) of section 5 of the Integrated Goods and Services
Tax Act(Act No. 13 of 2017);
2(99). "Revisional Authority"
In this Act, unless the context otherwise requires,-
(99). "Revisional Authority" means an authority appointed or authorised for
revision of decision or orders as referred to in section 108;
2(100). "Schedule"
In this Act, unless the context otherwise requires,-
(100). "Schedule" means a Schedule appended to this Act;
2(101). "securities"
In this Act, unless the context otherwise requires,-
(101). "securities" shall have the same meaning as assigned to it in clause (h)
of section 2 of the Securities Contracts (Regulation) Act, 1956 ( Act No. 42 of
1956);
2(102). "services"
In this Act, unless the context otherwise requires,-
(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 denomination for which a separate consideration is charged;
[EXPLANATION.-For the removal of doubts, it is hereby clarified that
the expression "services" includes facilitating or arranging transactions
in securities;]10
[(102A) "specified actionable claim" means the actionable claim involved in
or by way of-
(i) betting;
(ii) casinos;

10.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 20

(iii) gambling;
(iv) horse racing;
(v) lottery; or
(vi) online money gaming;]11
2(103). "State"
In this Act, unless the context otherwise requires,-
(103). "State" means the State of Uttar Pradesh
2(104). "State tax"

In this Act, unless the context otherwise requires,-

(104). "State tax" means the tax levied under this Act;
2(105). "supplier"
In this Act, unless the context otherwise requires,-
(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;
[Provided that a person who organises or arranges, directly or indirectly,
supply of specified actionable claims, including a person who owns, operates
or manages digital or electronic platform for such supply, shall be deemed to
be a supplier of such actionable claims, whether such actionable claims are
supplied by him or through him and whether consideration in money or
money's worth, including virtual digital assets, for supply of such actionable
claims is paid or conveyed to him or through him or placed at his disposal in
any manner, and all the provisions of this Act shall apply to such supplier of
specified actionable claims, as if he is the supplier liable to pay the tax in
relation to the supply of such actionable claims;]12
2(106). "tax period''
In this Act, unless the context otherwise requires,-
(106). "tax period'' means the period for which the return is required to be
furnished;
2(107). "Taxable person"
In this Act, unless the context otherwise requires,-
(107). "Taxable person" means a person who is registered or liable to be
registered under section 22 or section 24;

11
. Inserted The Uttar Pradesh Goods And Services Tax (Second Amendment) Act, 2023 (U.P.
Act No. 19 Of 2023) Published Vide No. 579(2)/LXXIX-V-1–2023-1-ka-18-2023 Dated Lucknow,
December 8, 2023
12
. Inserted The Uttar Pradesh Goods And Services Tax (Second Amendment) Act, 2023 (U.P.
Act No. 19 Of 2023) Published Vide No. 579(2)/LXXIX-V-1–2023-1-ka-18-2023 Dated Lucknow,
December 8, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 21

2(108). "Taxable supply''

In this Act, unless the context otherwise requires,-
(108). "Taxable supply'' means a supply of goods or services or both which is
leviable to tax under this Act;
2(109). "taxable territory"
In this Act, unless the context otherwise requires,-
(109). "taxable territory" means the territory to which the provisions of this
Act apply;
2(110). "telecommunication service"
In this Act, unless the context otherwise requires,-
(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 sounds or intelligence of any nature, by wire,
radio, visual or other electromagnetic means;
2(111). "the Central Goods and Services Tax Act"
In this Act, unless the context otherwise requires,-
(111). "the Central Goods and Services Tax Act" means the Central Goods
and Services Tax Act, 2017 (Act No. 12 of 2017);
2(112). "turnover in State" or "turnover in Union territory"
In this Act, unless the context otherwise requires,-
(112). "turnover in State" or "turnover in Union territory" 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 or Union territory 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 or Union territory by the said taxable person but
excludes central tax, State tax, Union territory tax, integrated tax and cess;
2(113). "usual place of residence"
In this Act, unless the context otherwise requires,-
(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;
2(114). "Union territory"
In this Act, unless the context otherwise requires,-
(114). "Union territory" means the territory of,-
(a) the Andaman and Nicobar Islands;
(b) Lakshadweep;
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 22

[(c) Dadra and Nagar Haveli and Daman and Diu;

(d) Ladakh]13
(e) Chandigarh; and
(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.
2(115). "Union territory tax"
In this Act, unless the context otherwise requires,-
(115). "Union territory tax" means the Union territory goods and services tax
levied under the Union Territory Goods and Services Tax Act(Act No. 14 of
2017);
2(116). "Union Territory Goods and Services Tax Act"
In this Act, unless the context otherwise requires,-
(116). "Union Territory Goods and Services Tax Act" means the Union
Territory Goods and Services Tax Act, 2017 (Act No. 14 of 2017);
2(117). "valid return"
In this Act, unless the context otherwise requires,-
(117). "valid return" means a return furnished under sub-section (1) of
section 39 on which self-assessed tax has been paid in full;
[(117A) "virtual digital asset" shall have the same meaning as assigned to it
in clause (47A) of section 2 of the Income-tax Act, 1961]14
2(118). "voucher"
In this Act, unless the context otherwise requires,-
(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;
2(119). "works contract"
In this Act, unless the context otherwise requires,-
(119). "works contract" means a contract for building, construction,
fabrication, completion, erection, installation, fitting out, improvement,

13. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020
(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31st
August, 2020. Prior to substitution sub-clause reads as under :-
"(c) Dadra and Nagar Haveli and (d) Daman and Diu"".
14
. Inserted The Uttar Pradesh Goods And Services Tax (Second Amendment) Act, 2023 (U.P.
Act No. 19 Of 2023) Published Vide No. 579(2)/LXXIX-V-1–2023-1-ka-18-2023 Dated Lucknow,
December 8, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 23

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;
2(120). In this Act, unless the context otherwise requires,-
(120). words and expressions used and not defined in this Act but defined in
the Integrated Goods and Services Tax Act (Act No. 13 of 2017), the Central
Goods and Services Tax Act (Act No. 12 of 2017), the Union Territory Goods
and Services Tax Act (Act No. 14 of 2017) and the Goods and Services Tax
(Compensation to States) Act (Act No. 15 of 2017)shall have the same
meanings as assigned to them in those Acts.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 24

CHAPTER II
ADMINISTRATION
3. Officers under this Act -
The Government shall, by notification, appoint the following classes of officers
for the purposes of this Act, namely:-
(a) Principal Commissioner, Chief Commissioner or Commissioner of
State tax
(b) Special Commissioners of State tax
(c) Additional Commissioners of State tax,
(d) Joint Commissioners of State tax,
(e) Deputy Commissioners of State tax,
(f) Assistant Commissioners of State tax,
(g) State tax officers and
(h) any other class of officers as it may deem fit:
Provided that, the officers appointed under the Uttar Pradesh Value Added
Tax Act, 2008 ( U.P. Act No. 5 of 2008) shall be deemed to be the officers
appointed under the provisions of this Act.
4. Appointment of officers -
(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 State 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.
5. Powers of officers -
(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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 25

6. Authorisation of officers of central tax as proper officer in certain

circumstances -
(1) Without prejudice to the provisions of this Act, the officers appointed
under the Central Goods and Services Tax Act, 2017 (Act No. 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
(Act No. 12 of 2017), as 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 (Act No. 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(Act
No. 12 of 2017).

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 26

CHAPTER III
LEVY AND COLLECTION OF TAX
7. Scope of supply.-
(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;
[(aa) the activities or transactions, by a person, other than an
individual, to its members or constituents or vice-versa, for cash,
deferred payment or other valuable consideration.
Explanation.––For the purposes of this clause, it is hereby clarified that,
notwithstanding anything contained in any other law for the time being
in force or any judgment, decree or order of any Court, Tribunal or
Authority, the person and its members or constituents shall be deemed
to be two separate persons and the supply of activities or transactions
inter se shall be deemed to take place from one such person to
another;]15
(b) import of services for a consideration whether or not in the course
or furtherance of business;[and]16
(c) the activities specified in Schedule I, made or agreed to be made
without a consideration; [***]17
(d) [***]18
[(1A) where certain activities or transactions, constitute a supply in
accordance with the provisions of sub-section (1), they shall be treated
either as supply of goods or supply of services as referred to
in Schedule II.]19
(2) Notwithstanding anything contained in sub-section (1),-
(a) activities or transactions specified in Schedule III; or

15. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act No.

40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated Lucknow,

December 27, 2021 and shall be deemed to have been inserted w.e.f. 01 July, 2017.
16.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 July, 2017.
17. The word "and" omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act,

2018 (U.P. Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-
18 Lucknow : Dated : 24 December, 2018 w.e.f. 01 July, 2017.
18. Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.

45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 July, 2017.
19.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 July, 2017.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 27

(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), (1A) and (2)]20, the
Government may, on the recommendations of the Council, specify, by
notification, the transactions that are to be treated as-
(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.
8. Tax liability on composite and mixed supplies -
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.
9. Levy and collection -
(1) Subject to the provisions of sub-section (2), there shall be levied a tax
called the Uttar Pradesh 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 per cent., 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 Government may, on the recommendations of the Council, by
notification, specify a class of registered persons who shall, in respect of
supply of specified categories of goods or services or both received from an
unregistered supplier, pay the tax on reverse charge basis as the recipient of
such supply of goods or services or both, and all the provisions of this Act

20.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 July, 2017.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 28

shall apply to such recipient as if he is the person liable for paying the tax in
relation to such supply of goods or services or both.".]21
(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 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.
10. Composition levy -
(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 under sub-
section (1) of section 9, an amount of tax calculated at such rate]22 as may be
prescribed, but not exceeding,-
(a) one per cent. of the turnover in State in case of a manufacturer,
(b) two and a half per cent. 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 per cent. of the turnover in State in case of other suppliers,
subject to such conditions and restrictions as may be prescribed:

21. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01st July, 2017. Prior to substitution clause reads
as under :-
"(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."
22. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.

Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18

Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "in lieu of the tax payable
by him, an amount calculated at such rate".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 29

Provided that the Government may, by notification, increase the said limit of
fifty lakh rupees to such higher amount, not exceeding [one crore and fifty
lakh rupees]23, as may be recommended by the Council.
[PROVIDED FURTHER that a person who opts to pay tax under clause (a) or
clause (b) or clause (c) may supply services (other than those referred to in
clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent,
of turnover in the State in the preceding financial year or five lakh rupees,
whichever is higher.]24
[Explanation.––For the purposes of second proviso, the value of exempt supply
of services provided by way of extending deposits, loans or advances in so far
as the consideration is represented by way of interest or discount shall not be
taken into account for determining the value of turnover in a State. ]25
(2) The registered person shall be eligible to opt under sub-section (1), if,-
[(a) save as provided in sub-section (1), he is not engaged in the supply
of services]26;
(b) he is not engaged in making any supply of goods [or services]27
which are not leviable to tax under this Act;
(c) he is not engaged in making any inter-State outward supplies of
goods [or services]28;
(d) he is not engaged in making any supply of [omitted]29 services]30
through an electronic commerce operator who is required to collect tax
at source under section 52; [***]31

23.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "one crore rupees".
24. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.

45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019.
25. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.

5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
26.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019. Prior to substitution clause
reads as under :-
"(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of
paragraph 6 of Schedule II";
27. Inserted by The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020 (U.P.

Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August,

2020 w.e.f. 01 January, 2021.
28. Inserted by The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020 (U.P.
Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August,
2020 w.e.f. 01 January, 2021.
29
. The Words "goods or" omitted by The Uttar Pradesh Goods and Services Tax (Amendment)
Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-
1(ka)-13-2023 Dated Lucknow, August 21, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 30

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

Government on the recommendations of the [Council; and]32:
[(f) he is neither a casual taxable person nor a non-resident taxable
person:]33
[(2A) 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, not eligible to opt to pay tax under sub-section (1)
and sub-section (2), 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 under sub-section (1) of section 9, an amount of
tax calculated at such rate as may be prescribed, but not exceeding
three percent of the turnover in State, if he is not––
(a) engaged in making any supply of goods or services
which are not leviable to tax under this Act;
(b) engaged in making any inter-State outward supplies of
goods or services;
(c) engaged in making any supply of [omitted]34 services
through an electronic commerce operator who is required to
collect tax at source under section 52;
(d) a manufacturer of such goods or supplier of such
services as may be notified by the Government on the
recommendations of the Council; and
(e) a casual taxable person or a non-resident taxable
person:
Provided that where more than one registered person are having the
same Permanent Account Number issued under the Income-tax Act, 196135,
the registered person shall not be eligible to opt for the scheme under this

30. Inserted by The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020 (U.P.
Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August,
2020 w.e.f. 01 January, 2021.
31.The word "and" omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act,
2020 (U.P. Act No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated
Lucknow, March 12, 2020 w.e.f. 01 January, 2020.
32. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020 for "Council" w.e.f. 01 January, 2020.
33. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.

5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020 w.e.f. 01 January, 2020.
34
The Words "goods or" omitted by The Uttar Pradesh Goods and Services Tax (Amendment)
Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-
1(ka)-13-2023 Dated Lucknow, August 21, 2023
35.43 of 1961.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 31

sub-section unless all such registered persons opt to pay tax under this sub-
section.]36
Provided that where more than one registered person are having the same
Permanent Account Number (issued under the Income-tax Act 1961 (Act No.
43 of 1961)), the registered person shall not be eligible to opt for the scheme
under subsection (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) [or sub-
section (2A), as the case may be,]37 shall lapse with effect from the day on
which his aggregate turnover during a financial year exceeds the limit
specified under sub-section (1) [or sub-section (2A), as the case may be,]38.
(4) A taxable person to whom the provisions of subsection (1) [or, as the case
may be, sub-section (2A)]39 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) [or sub-section (2A), as the case may be,]40 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.
[Explanation 1.––For the purposes of computing aggregate turnover of a
person for determining his eligibility to pay tax under this section, the
expression “aggregate turnover” shall include the value of supplies
made by such person to the 1st day of April of a financial year up to
the date when he becomes liable for registration under this Act, but
shall not include the value of exempt supply of services provided by
way of extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount.
Explanation 2.––For the purposes of determining the tax payable
by a person under this section, the expression “turnover in State or
turnover in Union territory” shall not include the value of following
supplies, namely:––

36. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.

5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
37. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.
5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
38. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.

5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
39. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.

5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
40. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.
5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 32

(i) supplies to the first day of April of a financial year up to

the date when such person becomes liable for registration under
this Act; and
(ii) exempt supply of services provided by way of extending
deposits, loans or advances in so far as the consideration is
represented by way of interest or discount.’.]41
11. Power to grant exemption from tax-
(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 subsection (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 subsection (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 (Act No. 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 excess of the effective
rate, on such supply of goods or services or both.

41. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.
5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 33

CHAPTER IV
TIME AND VALUE OF SUPPLY
12. Time of supply of goods -
(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 [***]42 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-

42. The word “sub-section (1) of” Omitted by The Uttar Pradesh Goods and Services Tax

(Amendment) Act, 2018 (U.P. Act No. 45 of 2018) Published vide Notification No.
2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow : Dated : 24 December, 2018 w.e.f. 01 January,
2020.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 34

(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.
13. Time of supply of services -
(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 [***]43 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 [***]44 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;

43.The word “sub-section (2) of” Omitted by The Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2018 (U.P. Act No. 45 of 2018) Published vide Notification No.
2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow : Dated : 24 December, 2018 w.e.f. 01 February,
2019.
44. The word “sub-section (2) of” Omitted by The Uttar Pradesh Goods and Services Tax

(Amendment) Act, 2018 (U.P. Act No. 45 of 2018) Published vide Notification No.
2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow : Dated : 24 December, 2018 w.e.f. 01 February,
2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 35

(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 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.
14. Change in rate of tax in respect of supply of goods or services -
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

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 36

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
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.
15. Value of taxable supply -
(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 (Act No. 12 of 2017) and the Goods and Services
Tax (Compensation to States) Act, 2017 (Act No. 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;

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 37

(c) incidental expenses, including commission and packing, charged by

the supplier to the recipient of a supply and any 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 subsection (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 per cent. Or more of the outstanding 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
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 38

(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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 39

CHAPTER V
INPUT TAX CREDIT
16. Eligibility and conditions for taking input tax credit -
(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;
[(aa) the details of the invoice or debit note referred to in clause (a) has
been furnished by the supplier in the statement of outward supplies
and such details have been communicated to the recipient of such
invoice or debit note in the manner specified under section 37;]45
(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 or, as the case may
be, services-
(i) 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;
(ii) where the services are provided by the supplier to any person on
the direction of and on account of such registered person.]46;

[(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.]47

45.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act No.
40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated Lucknow,
December 27, 2021.
46.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019. Prior to substitution
explanation reads as under :-
"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.";
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 40

(c) subject to the provisions of [section 41 [omitted]48]49, 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:
Provided that where the goods against an invoice are received in lots or
installments, the registered person shall be entitled to take credit upon receipt
of the last lot or installment:
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 [paid by him along with interest payable under section
50]50 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 [to the supplier]51 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 (Act No. 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
[thirtieth day of November]52 following the end of financial year to which such

47
. Inserted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022
48. The Words "or section 43A" omitted by the Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
49.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 for "Section 41";
50
. Substituted for the words "added to his output tax liability, along with interest thereon," by
The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023)
Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August
21, 2023
51
. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No.
14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
52.Substituted for the Words "due date of furnishing of the return under section 39 for the
month of September" by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U.
P. Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-
2022 Dated Lucknow, September 29, 2022
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 41

invoice or [***]53 debit note pertains or furnishing of the relevant annual

return, whichever is earlier.
[PROVIDED that the registered person shall be entitled to take input tax
credit after the due date of furnishing of the return under section 39 for the
month of September, 2018 till the due date of furnishing of the return under
the said section for the month of March, 2019 in respect of any invoice or
invoice relating to such debit note for supply of goods or services or both
made during the financial year 2017-18, the details of which have been
uploaded by the supplier under sub-section (1) of section 37 till the due date
for furnishing the details under sub-section (1) of said section for the month
of March, 2019.]54

53. The words "invoice relating to such" Omitted by The Uttar Pradesh Goods and Services Tax
(Third Amendment) Act, 2020 (U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-
1-20-1(ka)-27-20 Dated 31 August, 2020 w.e.f. 01 January, 2021.
54.Inserted by The Uttar Pradesh Goods and Services Tax (Second Removal of Difficulties)
Order, 2019 published vide Order No. KA.NI.-2-187/XI-9(42)/17-2019 Dated 24 January,
2019 w.e.f. 24 January, 2019..
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 42

17. Apportionment of credit and blocked credits -

(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, 2017 (Act No. 13 of
2017) 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.
[EXPLANATION.-For the purposes of this sub-section, the expression "value of
exempt supply" shall not include the value of activities or transactions
specified in Schedule III, [except,-
(i) the value of activities or transactions specified in paragraph 5 of the said
Schedule; and
(ii) the value of such activities or transactions as may be prescribed in respect
of clause (a) of paragraph 8 of the said Schedule.]55.]56;
(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 per cent. of the eligible input tax credit on inputs, capital goods
and input services in that month and the rest shall lapse: 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 subsection (1) of section 16 and
sub-section (1) of section 18, input tax credit shall not be available in respect
of the following, namely:-

55
. Substituted for the Words "except those specified in paragraph 5 of the said Schedule" by
The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023)
Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August
21, 2023
56.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 43

[(a) motor vehicles for transportation of persons having approved seating

capacity of not more than thirteen persons (including the driver), except when
they are used for making the following taxable supplies, namely:-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used-
(i) for making the following taxable supplies, namely:-
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods:
(ab) services of general insurance, servicing, repair and maintenance in so far
as they relate to motor vehicle, vessels or aircraft referred to in clause (a) or
clause (aa):
PROVIDED that the input tax credit in respect of such services shall be
available-
(i) where the motor vehicles, vessels or aircraft referred to in clause (a)
or clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged-
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor
vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health
services, cosmetic and plastic surgery, leasing, renting or hiring of
motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa)
except when used for the purposes specified therein, life insurance and
health insurance:
PROVIDED that the input tax credit in respect of such goods or
services or both shall be available where an inward supply of such
goods or services or both 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; and
(iii) travel benefits extended to employees on vacation such as leave or
home travel concession:
PROVIDED that the input tax credit in respect of such goods or
services or both shall be available, where it is obligatory for an

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 44

employer to provide the same to its employees under any law for the
time being in force.]57
(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 reconstruction, 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
section10;
(f) goods or services or both received by a non-resident taxable person
except on goods imported by him;
[(fa) goods or services or both received by a taxable person, which are
used or intended to be used for activities relating to his obligations

57.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019. Prior to substitution Clause (a)
and (b) reads as under :-
(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 supply; and
(iv) travel benefits extended to employees on vacation such as leave or home travel concession.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 45

under corporate social responsibility referred to in section 135 of the

Companies Act, 2013]58
(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 subsections (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;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
18. Availability of credit in special circumstances -
(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 subsection (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;

58. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 46

(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 semifinished 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 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 edger 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
subsection (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 section 15, 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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 47

19. Taking input tax credit in respect of inputs and capital goods sent
for job work-
(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 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 subsection (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.
20. Manner of distribution of credit by Input Service Distributor -
(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:-

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 48

(a) the credit can be distributed to the recipients of credit against

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 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 [under entries 84 and 92A]59 of List I of the Seventh
Schedule to the Constitution and entry 51 and 54 of List II of the said
Schedule.

21. Manner of recovery of credit distributed in excess -

59.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "under entry 84";
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 49

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

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 50

CHAPTER - VI
REGISTRATION
22. Persons liable for registration -
(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.
[PROVIDED FURTHER that where such person makes taxable supplies of
goods or services or both from a special category State in respect of which the
Central Government has enhanced the aggregate turnover referred to in the
first proviso, he shall be liable to be registered if his aggregate turnover in a
financial year exceeds the amount equivalent to such enhanced turnover.]60
[Provided also that the Government may, on the recommendations of the
Council, enhance the aggregate turnover from twenty lakh rupees to such
amount not exceeding forty lakh rupees in case of supplier who is engaged
exclusively in the supply of goods, subject to such conditions and limitations,
as may be notified.
Explanation.––For the purposes of this sub-section, a person shall be
considered to be engaged exclusively in the supply of goods even if he is
engaged in exempt supply of services provided by way of extending deposits,
loans or advances in so far as the consideration is represented by way of
interest or discount.]61
(2) Every person who, on the day immediately preceding the appointed day, is
registered or holds a license 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 subsections (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

60. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.

45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019.
61.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.
5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 51

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 [except the State of Jammu and Kashmir, States of
Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and
Uttarakhand]62.
23. Persons not liable for registration -
(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 tax or wholly exempt from tax
under this Act or under the Integrated Goods and Services Tax Act;
(b) An agriculturist, to the extent of supply of produce out of cultivation
of land.
[(2) Notwithstanding anything to the contrary contained in sub-section (1) of
section 22 or section 24, the Government may, on the recommendations of
the Council, by notification, subject to such conditions and restrictions as
may be specified therein, specify the category of persons who may be
exempted from obtaining registration under this Act.]63
24. Compulsory registration in certain cases -
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;

62. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.

45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019.
63. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. W.e.f. 1st of July 2017
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 52

(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 [who is required to collect tax at
source under section 52]64;
(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; [Omitted]65
[(xia) every person supplying online money gaming from a place outside
India to a person in India; and]66
(xii) such other person or class of persons as may be notified by the
Government on the recommendations of the Council.
25. Procedure for registration -
(1) Every person who is liable to be registered under section 22 or 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.
[PROVIDED FURTHER that a person having a unit, as defined in the Special
economic Zones Act, 2005 (Act No. 28 of 2005), in a Special Economic Zone or
being a Special Economic Zone developer shall have to apply for a separate

64. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.

45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019.
65 . The Work "and" Omitted by The Uttar Pradesh Goods And Services Tax (Second
Amendment) Act, 2023 (U.P. Act No. 19 Of 2023) Published Vide No. 579(2)/LXXIX-V-1–2023-
1-ka-18-2023 Dated Lucknow, December 8, 2023
66
. Inserted by The Uttar Pradesh Goods And Services Tax (Second Amendment) Act, 2023 (U.P.
Act No. 19 Of 2023) Published Vide No. 579(2)/LXXIX-V-1–2023-1-ka-18-2023 Dated Lucknow,
December 8, 2023

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 53

registration, as distinct from his place of business located outside the Special
Economic Zone in the State.]67
Explanation.- Every person who makes a supply from the territorial waters of
India shall obtain registration in the State where the nearest point of the
appropriate baseline is located.
(2) A person seeking registration under this Act shall be granted a single
registration:
[PROVIDED that a person having multiple places of business in the State may
be granted a separate registration for each such place of business, subject to
such conditions as may be prescribed.]68
(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 (Act No. 43 of 1961) in order to be eligible for grant of
registration:
[(6A) Every registered person shall undergo authentication, or furnish proof of
possession of Aadhaar number, in such form and manner and within such
time as may be prescribed:
Provided that if an Aadhaar number is not assigned to the registered
person, such person shall be offered alternate and viable means of
identification in such manner as Government may, on the recommendations
of the Council, prescribe:
Provided further that in case of failure to undergo authentication or
furnish proof of possession of Aadhaar number or furnish alternate and viable
means of identification, registration allotted to such person shall be deemed to
be invalid and the other provisions of this Act shall apply as if such person
does not have a registration.

67.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
68. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.

Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18

Lucknow : Dated : 24 December, 2018 prior to substitution proviso reads as under :-
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.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 54

(6B) On and from the date of notification, every individual shall, in

order to be eligible for grant of registration, undergo authentication, or furnish
proof of possession of Aadhaar number, in such manner as the Government
may, on the recommendations of the Council, specify in the said notification:
Provided that if an Aadhaar number is not assigned to an individual,
such individual shall be offered alternate and viable means of identification in
such manner as the Government may, on the recommendations of the
Council, specify in the said notification.
(6C) On and from the date of notification, every person, other than an
individual, shall, in order to be eligible for grant of registration, undergo
authentication, or furnish proof of possession of Aadhaar number of the
Karta, Managing Director, whole time Director, such number of partners,
Members of Managing Committee of Association, Board of Trustees,
authorised representative, authorised signatory and such other class of
persons, in such manner, as the Government may, on the recommendations
of the Council, specify in the said notification:
Provided that where such person or class of persons have not been
assigned the Aadhaar Number, such person or class of persons shall be
offered alternate and viable means of identification in such manner as the
Government may, on the recommendations of the Council, specify in the said
notification.
(6D) The provisions of sub-section (6A) or sub-section (6B) or sub-
section (6C) shall not apply to such person or class of persons or any State or
part thereof, as the Government may, on the recommendations of the Council,
specify by notification.
Explanation.—For the purposes of this section, the expression “Aadhaar
number” shall have the same meaning as assigned to it in clause (a) of section
2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits
and Services) Act, 201669.]70
Provided that a person required to deduct tax under section 51may 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 subsection (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 subsection (1),-

69. 18 of 2016
70.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.
5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 55

(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 ( Act No. 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 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.
26. Deemed registration -
(1) The grant of registration or the Unique Identity Number under the Central
Goods and Services Tax Act, 2017 (Act No. 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 subsection (10) of section 25, any
rejection of application for registration or the Unique Identity Number under
the Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017) shall be
deemed to be a rejection of application for registration under this Act.
27. Special provisions relating to casual taxable person and non-resident
taxable person -
(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

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 56

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

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 57

28. Amendment of registration -

(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 (Act No. 12 of 2017) shall
be deemed to be a rejection or approval under this Act.
29. Cancellation [or suspension]71 of registration-
(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 is no longer liable to be registered under section
22 or Section 24 or intends to opt out of the registration voluntarily
made under sub-section (3) of Section 25.]72
[PROVIDED that during pendency of the proceedings relating to
cancellation of registration filed by the registered person, the
registration may be suspended for such period and in such manner as
may be prescribed.]73

71.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
72. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020

(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31

August, 2020 w.e.f. 01 January, 2021. Prior to substitution clause reads as under :-
(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.
73.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 58

(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 there under as may be prescribed; or
(b) a person paying tax under section 10 has not furnished [the return
for a financial year beyond three months from the due date of furnishing the
said return]74; or
(c) any registered person, other than a person specified in clause (b),
has not furnished returns for [such continuous tax period as may be
prescribed]75; or
(d) any person who has taken voluntary registration under 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.
[PROVIDED FURTHER, that during pendency of the proceedings relating to
cancellation of registration, the proper officer may suspend the registration for
such period and in such manner as may be prescribed.]76
(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 there under 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 (Act No. 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

74.Substituted for the Words "returns for three consecutive tax periods" by the Uttar Pradesh
Goods and Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide
Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29,
2022
75.Substituted for the Words " a continuous period of six months" by the Uttar Pradesh Goods
and Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide
Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29,
2022
76.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 59

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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 60

30. Revocation of cancellation of registration -

(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
[such manner, within such time and subject to such conditions and
restrictions, as may be prescribed]77.
[Provided that such period may, on sufficient cause being shown, and for
reasons to be recorded in writing, be extended,-
(a) by the Joint Commissioner (Executive), for a period not exceeding thirty
days;
(b) by the Additional Commissioner Grade-1, for a further period not
exceeding thirty days, beyond the period specified in clause (a).]78
(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:
[omitted]79
(3) The revocation of cancellation of registration under the Central Goods and
Services Tax Act shall be deemed to be a revocation of cancellation of
registration under this Act.

77 . Substituted for the words " prescribed manner within thirty days from the date of service of
the cancellation order" by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023
(U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023
Dated Lucknow, August 21, 2023
78. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020
(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31
August, 2020 w.e.f. 01 January, 2021. Prior to substitution clause reads as under :-
[Provided that the registered person who was served notice under sub-section (2) of section 29
in the manner as provided in clause (c) or clause (d) of sub-section (1) of section 169 and who
could not reply to the said notice, thereby resulting in cancellation of his registration certificate
and is hence unable to file application for revocation of cancellation of registration under sub-
section (1) of section 30 of the Act, against such order passed up to 31.03.2019, shall be
allowed to file application for revocation of cancellation of the registration not later than
22.07.2019.]*
*Inserted by the Uttar Pradesh Goods and Services Tax (Ninth Removal of Difficulties) Order,
2019 vide Order No. KA.NI.-2-985/XI-9(47)/17-2019, dated July 02, 2019.
79 . The proviso omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023

(U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023

Dated Lucknow, August 21, 2023. Before omission the proviso reads as under :
"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."

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 61

CHAPTER- VII
TAX INVOICE, CREDIT AND DEBIT NOTES
31. Tax invoice -
(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,-
(a) specify the categories of services or supplies in respect of which a tax
invoice shall be issued, within such time and in such manner as may be
prescribed:
(b) subject to the condition mentioned therein, specify the categories of
services in respect of which-
(i) any other document issued in relation to the supply shall be deemed to be
a tax invoice; or
(ii) tax invoice may not be issued.]80
(3) Notwithstanding anything contained in subsections (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;

80. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020

(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31

August, 2020 w.e.f. 01 January, 2021. Prior to substitution clause reads as under :-
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.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 62

(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 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:81
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 subsection (3) or
sub-section (4) of section 9shall 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 subsection (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 when the
supplier of service receives the payment;

81.The Uttar Pradesh Goods and Services Tax (Seventh Removal of Difficulties) Order, 2019
published vide Government Notification no. KA.NI-2-811/XI-9(42)/17-2019, dated 28 May,
2019 clarified as under :
"It is hereby clarified that provisions of clause (c) of sub-section (3) of section 31 of the said Act
shall apply to a person paying tax under notification No.-524 dated 01 April, 2019."
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(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 subsection (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.
[31A. Facility of digital payment to recipient. The Government may, on the
recommendations of the Council, prescribe a class of registered persons who
shall provide prescribed modes of electronic payment to the recipient of
supply of goods or services or both made by him and give option to such
recipient to make payment accordingly, in such manner and subject to such
conditions and restrictions, as may be prescribed.]82
32. Prohibition of unauthorised collection of tax-
(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 there under.
33. Amount of tax to be indicated in tax invoice and other documents -
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.
34. Credit and debit notes -
(1) [Where one or more tax invoices have]83 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

82.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No.
5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020
w.e.f. 01 January, 2020.
83.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "Where a tax invoice has".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 64

recipient [one or more credit notes for supplies made in a financial year]84
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 [the thirtieth day of November]85 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 shall be
permitted, if the incidence of tax and interest on such supply has been passed
on to any other person.
(3) [Where one or more tax invoices have]86 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 [one or more debit notes for supplies made
in a financial year]87 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.

84.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "a credit note".
85. Substituted for the Word "September" by the Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022

86. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.

Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18

Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "Where a tax invoice has".
87.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "a debit note".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 65

CHAPTER VIII
ACCOUNTS AND RECORDS
35. Accounts and other records -
(1) Every registered person shall keep and maintain, at his principal 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 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.
[***]88

88. Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act No.

40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated Lucknow,

December 27, 2021 and shall be deemed to have been inserted w.e.f. the 01 July, 2017. Prior to
omission sub-section reads as under :-
(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 subsection (2) of
section 44 and such other documents in such form and manner as may be prescribed.
[PROVIDED that nothing contained in this sub-section shall apply to any department of the
Central Government or a State Government or a local authority, whose books of account are
subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for
auditing the accounts of local authorities under any law for the time being in force.]*
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(6) Subject to the provisions of clause (h) of subsection (5) of section 17, where
the registered person fails to account for the goods or services or both in
accordance with the provisions of subsection (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
maybe, shall, mutatis mutandis, apply for determination of such tax.
36. Period of retention of accounts -
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.

*Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018.
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CHAPTER- IX RETURNS
37. Furnishing details of outward supplies -
(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, [subject to
such conditions and restrictions and]89 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, 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]90:
[Omitted]91
[Provided that]92 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]93 any extension of time limit notified by the
Commissioner of central tax shall be deemed to be notified by the
Commissioner.
[Omitted]94

89
. Inserted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022
90
. Substituted for the Words "shall be communicated to the recipient of the said supplies
within such time and in such manner as may be prescribed" by the Uttar Pradesh Goods and
Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No.
No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
91
. The proviso omitted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022
(U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-
10-2022 Dated Lucknow, September 29, 2022. Before Omission the proviso reads as under :

" 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"
92. Substituted for the Words "Provided further that" by the Uttar Pradesh Goods and Services
Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
93
. Substituted for the Words " Provided also that" by the Uttar Pradesh Goods and Services
Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
94.Omitted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022. Prior to omission the sub-Section (2) reads as under :

"(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 subsection (4) of section 38, shall either accept or reject the details so
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 68

(3) Any registered person, who has furnished the details under sub-section (1)
for any tax period [Omitted]95, 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 [the thirtieth day of
November]96 following the end of the financial year to which such details
pertain, or furnishing of the relevant annual return, whichever is earlier.
[PROVIDED FURTHER that the 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, 2018 till the due
date for furnishing the details under sub-section (1) for the month of March,
2019 or for the quarter January, 2019 to March, 2019.]97
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.
[(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 commendations of the Council, by
notification, subject to such conditions and restrictions as may be specified
there in, 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.]98

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."
95. The Words " and which have remained unmatched under section 42 or section 43" omitted
by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of
2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated
Lucknow, September 29, 2022
96.Substituted for the Words "furnishing of the return under section 39 for the month of
September" by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022
97. Inserted by The Uttar Pradesh Goods and Services Tax (Second Removal of Difficulties)

Order, 2019 published vide Order No. KA.NI.-2-187/XI-9(42)/17-2019 Dated 24 January,

2019.
98. Inserted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 69

[(5) A registered person shall not be allowed to furnish the details of outward
supplies under sub-section (1) for a tax period after the expiry of a period of
three years from the due date of furnishing the said details:
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 for a tax period under sub-section (1), even
after the expiry of the said period of three years from the due date of
furnishing the said details.]99
[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.]100

99
. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No.
14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
100 . Substituted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P.
Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-
2022 Dated Lucknow, September 29, 2022. Prior to Substitution Section 38 reads as under :
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 70

39. Furnishing of returns -

[(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, 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, in such form and manner, and within such time, as
may be prescribed:

" 38. Furnishing details of inward supplies -

(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 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
subsection (1) of section 37.
(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 (Act No. 13 of 2017) or on which integrated goods and services tax is payable
under section 3 of the Customs Tariff Act, 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 subsection (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 furnishing of the relevant annual return, whichever is earlier."

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 71

Provided that the Government may, on the recommendations of the

Council, notify certain class of registered persons who shall furnish a return
for every quarter or part thereof, subject to such conditions and restrictions
as may be specified therein.
(2) A registered person paying tax under the provisions of section 10, shall, for
each financial year or part thereof, furnish a return, electronically, of turnover
in the State, inward supplies of goods or services or both, tax payable, tax
paid and such other particulars in such form and manner, and within such
time, as may be prescribed.]101;
(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 [thirteen]102 days after the end of a

101. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P.
Act No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March
12, 2020 w.e.f. 10 November, 2020. Prior to substitution clauses reads as under :-
(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, manner and within such
time 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 [***]**
[PROVIDED that the Government may, on the recommendations of the Council, notify certain
classes of registered persons who shall furnish return for every quarter or part thereof, subject
to such conditions and safeguards as may be specified therein.]***
(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.
* Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 for " in such form and manner as may be prescribed ".
** The words "on or before the twentieth day of the month succeeding such calendar month or
part thereof" omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018
(U.P. Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018.
*** Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018.
102. Substituted for the Word "Twenty" by the Uttar Pradesh Goods and Services Tax

(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 72

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), other than the person referred to in the proviso thereto, 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:
[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.]103:
Provided further that every registered person furnishing return under sub-
section (2) shall pay to the Government, the tax due taking into account
turnover in the State inward supplies of goods or services or both, tax
payable, and such other particulars during a quarter, in such form and
manner, and within such time, as may be prescribed.]104

103. Substituted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P.

Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-
2022 Dated Lucknow, September 29, 2022. Prior to Substitution the Proviso Reads as under :

"Provided that every registered person furnishing return under the proviso to sub-
section (1) shall pay to the Government, 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, in such form and manner, and within such
time, as may be prescribed."
104. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P.
Act No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March
12, 2020 prior to substitution clause reads as under :-
(7) Every registered person, who is required to furnish a return under sub-section (1) or
subsection (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.
[PROVIDED that the Government may, on the recommendations of the Council, notify certain
classes of registered persons who shall pay to the Government the tax due or part thereof as
per the return on or before the last date on which he is required to furnish such return, subject
to such conditions and safeguards as may be specifies therein.]*
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 73

(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) [Where]105 any registered person after furnishing a return under sub-
section (1) or sub-section (2) subsection (3) or sub-section (4) or sub-section
(5) 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 such
form and manner as may be prescribed]106, subject to payment of interest
under this Act:
Provided that no such rectification of any omission or incorrect particulars
shall be allowed after [the thirtieth day of November]107 following [the end of
the financial year to which such details pertain]108, 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 [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
there in, 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.]109

*Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No.
45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018.
105 . Substituted for the Words " Subject to the provisions of sections 37 and 38, if" by the Uttar

Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published
Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September
29, 2022

106. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.

Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18

Lucknow : Dated : 24 December, 2018 for "in the return to be furnished for the month or
quarter during which such omission or incorrect particulars are noticed".
107. Substituted for the words "the due date for furnishing of return for the month of September

or second quarter" by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P.
Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022
108. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.

Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18

Lucknow : Dated : 24 December, 2018 for " the end of the financial year".
109. Substituted for the Words "has not been furnished by him" by the Uttar Pradesh Goods and

Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No.
No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
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[(11) A registered person shall not be allowed to furnish a return for a tax
period after the expiry of a period of three years from the due date of
furnishing the said return:
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 for a tax period, even after the expiry of the said period of three
years from the due date of furnishing the said return.]110
40. First Return -
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.
[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.]111

110
. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
111. Substituted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P.

Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-
2022 Dated Lucknow, September 29, 2022. Prior to Substitution Section 41 reads as under :
"41. Claim of input tax credit and provisional acceptance thereof -
(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."
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 75

[Section 42, Section 43 and Section 43-A Omitted]112

112.Omitted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022. Prior to omission Sections reads as under :-
42. Matching, reversal and reclaim of input tax credit -
(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
( Act No. 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 (Act No. 51 of 1975) in respect of goods imported by him shall be
finally accepted and such acceptance shall be communicated, in such 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 subsection (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
subsection (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 subsection (5) or sub-section
(6), shall be liable to pay interest at the rate specified under subsection (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 subsection (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 subsection (3) of section 50.
43. Matching, reversal and reclaim of reduction in output tax liability -
(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 for the
same tax period or any subsequent tax period; and
(b) for duplication of claims for reduction in output tax liability.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 76

(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 subsection (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
subsection (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 subsection (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 subsections.
(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.
[43A. Procedure for furnishing return and availing input tax credit-
(1) Notwithstanding anything contained in sub-section (2) of Section 16, Section 37 or Section 38, every
registered person shall in the returns furnished under sub-section (1) of Section 39 verify, validate, modify
of delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in Section 41, Section 42 or Section 43, the procedure for availing
of Input Tax Credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for
the purposes of availing input tax credit by the recipient shall be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-
section (3) shall be such as may be prescribed and such procedure may include the maximum amount of
the input tax credit which can be so availed, not exceeding twenty per cent of the input tax credit available,
on the basis of details furnished by the supplies under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the
supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the
Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the
input tax credit availed, as the case may be, in relation to outward supplies for which the details have been
furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed
and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed
not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details
of which can be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months
from the due date of payment of such defaulted amount, shall be such as may be prescribed.".]*
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 77

[44. Annual return - [ (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 which may include a self-certified reconciliation statement,
reconciling the value of supplies declared in the return furnished for the
financial year, with the audited annual financial statement for every financial
year electronically, within such time and in such form and in such manner as
may be prescribed:
Provided that the Commissioner may, on the recommendations of the Council,
by notification, exempt any class of registered persons from filing annual
return under this section:
Provided further that nothing contained in this section shall apply to any
department of the Central Government or a State Government or a local
authority, whose books of account are subject to audit by the Comptroller and
Auditor-General of India or an auditor appointed for auditing the accounts of
local authorities under any law for the time being in force.]113]114
[(2) A registered person shall not be allowed to furnish an annual return
under sub-section (1) for a financial year after the expiry of a period of three
years from the due date of furnishing the said annual return:
Provided that the Government may, on the recommendations of the Council,
by notification, and subject to such conditions and restrictions as may be
specified therein, allow a registered person or a class of registered persons to

*Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act No. 45 of 2018)
Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow : Dated : 24 December, 2018.
113.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to substitution clauses reads as under :-
44. Annual return -(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.
Provided that the Commissioner may, on the recommendations of the Council and for reasons to be
recorded in writing, by notification, extend the time limit for furnishing the annual return for such
class of registered 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.
(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) along with 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.
Explanation.-For the purposes of this section, it is hereby declared that the annual return for
the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the
31st December, 2019 and the annual return for the period from the 1st April, 2018 to the 31st
March, 2019 shall be furnished on or before the 31st March, 2020.
114
. Renumbered as 1 by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023
(U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023
Dated Lucknow, August 21, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 78

furnish an annual return for a financial year under sub-section (1), even after
the expiry of the said period of three years from the due date of furnishing the
said annual return.]115

115
. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 79

45. Final return -

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.
46. Notice to return defaulters -
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.
47. Levy of late fee -
(1) Any registered person who fails to furnish the details of outward
[omitted]116 supplies required under section 37 [omitted]117 or returns required
under section 39 or section 45 [or section 5]118 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 per cent. of his turnover in
the State.
48. Goods and services tax practitioners -
(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,
[omitted]119 and the return under section 39 or section 44 or section 45 [and
to perform such other functions]120 in such manner as may be prescribed.

116 . The Words "or inward" omitted by the Uttar Pradesh Goods and Services Tax (Amendment)

Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-
2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
117
. The Words "or Section 38" omitted by the Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
118
. The Words "or Section 52" inserted by the Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
119. The Words "the details of inward supplies under section 38" omitted by the Uttar Pradesh
Goods and Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide
Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29,
2022
120.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 80

(3) Notwithstanding anything contained in subsection (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 furnished.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 81

CHAPTER-X
PAYMENT OF TAX
49. Payment of tax, interest, penalty and other amounts -
(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
[omitted]121]122, 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 there under 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 restrictions]123 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;

121. The Words "or Section 43-A" omitted by the Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
122.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 for "Section 41".
123. The Words "and restrictions" Inserted by the Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 82

[PROVIDED that the input tax credit on account of State tax shall be
utilised towards payment of integrated tax only where the balance of
the input tax credit on account of central tax is not available for
payment of integrated tax;]124
(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 the payment of integrated tax;
[PROVIDED that the input tax credit on account of Union territory tax
shall be utilised towards payment of integrated tax only where the
balance of the input tax credit on account of central tax is not available
for payment of integrated tax;]125
(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 there under 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 there under 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 there under 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;

124. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act

No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019.
125.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 83

(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 there under.
[(10) A registered person may, on the common portal, transfer any amount of
tax, interest, penalty, fee or any other amount available in the electronic cash
ledger under this Act, to the electronic cash ledger for integrated tax, central
tax, State tax, Union territory tax or cess, in such form and manner and
subject to such conditions and restrictions as may be prescribed and such
transfer shall be deemed to be a refund from the electronic cash ledger under
this Act.
(11) Where any amount has been transferred to the electronic cash ledger
under this Act, the same shall be deemed to be deposited in the said ledger as
provided in sub-section (1).]126
[(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 which may be discharged through the electronic credit ledger by a
registered person or a class of registered persons, as may be prescribed.]127
[49A. Utilisation of input tax credit subject to certain conditions.-
Notwithstanding anything contained in section 49, the input tax credit on
account of State tax shall be utilised towards payment of integrated tax or
State tax, as the case may be, only after the input tax credit available on
account of integrated tax has first been utilized fully towards such payment.
49B. Order of utilization of input tax credit. -
Notwithstanding anything contained in this Chapter and subject to the
provisions of clause (e) and clause (f) of sub-section (5) of section 49, the
Government may, on the recommendations of the Council, prescribe the order
and manner of utilisation of the input tax credit on account of integrated tax,
central tax, State tax or Union territory tax, as the case may be, towards
payment of any such tax.]128

126.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020 w.e.f. 01 January, 2020.
127
. Inserted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022
128.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 84

50. Interest on delayed payment of tax -

(1) Every person who is liable to pay tax in accordance with the provisions of
this Act or the rules made there under, 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.
[Provided that the interest on tax payable in respect of supplies made during a
tax period and declared in the return for the said period furnished after the
due date in accordance with the provisions of section 39, except where such
return is furnished after commencement of any proceedings under section 73
or section 74 in respect of the said period, shall be payable on that portion of
the tax which is paid by debiting the electronic cash ledger.]129
(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) 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.]130

51. Tax deduction at source -

(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

129.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021 and shall be deemed to have been substituted w.e.f. the 01 July,
2017. Prior to substitution proviso reads as under :-
[Provided that the interest on tax payable in respect of supplies made during a tax period and
declared in the return for the said period furnished after the due date in accordance with the
provisions of section 39, except where such return is furnished after commencement of any
proceedings under section 73 or section 74 in respect of the said period, shall be levied on that
portion of the tax that is paid by debiting the electronic cash ledger.]*
*Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act No. 5
of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12, 2020.
130. Substituted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P.
Act. No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022. W. e. f. 1-07-2017.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 85

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,
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) A certificate of tax deduction at source shall be issued in such form and in
such manner as may be prescribed.]131
(4) [***]132
(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
subsection (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.

131. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020
(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31
August, 2020 w.e.f. 01 January, 2021. Prior to substitution clause reads as under :-
(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.
132. Omitted by The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020 (U.P.

Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August,

2020 w.e.f. 01 January, 2021. Prior to omission sub-section (4) reads as under:-
"(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."
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 86

52. Collection of tax at source -

(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 subsection (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.
[Provided that the Commissioner may, for reasons to be recorded in writing,
by notification, extend the time limit for furnishing the statement for such
class of registered 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.]133
[Explanation:- For the purposes of this sub-section, it is hereby declared that
the due date for furnishing the said statement for the months of October,
November and December, 2018 shall be the [7th February, 2019]134.]135
(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

133.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020 w.e.f. 01 January, 2020.
134.Substituted vide The Uttar Pradesh Goods and Services Tax (Fifth Removal of Difficulties)
Order, 2019 vide Order no. KA.NI.-2-244/XI-9(42)/17-2019, dated 05 March, 2019 for "31st
January, 2019".
135.Inserted by The Uttar Pradesh Goods and Services Tax (Fourth Removal of Difficulties)
Order, 2019 vide Order no. KA.NI.-2-298/XI-9(42)/17-2019, dated 13 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 87

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.
[Provided that the Commissioner may, on the recommendations of the Council
and for reasons to be recorded in writing, by notification, extend the time limit
for furnishing the annual statement for such class of registered 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.]136
(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 subsection (1) of
section 50:
Provided that no such rectification of any omission or incorrect particulars
shall be allowed after the [thirtieth day of November]137 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 or section 39]138, 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
subsection (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

136. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act

No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020 w.e.f. 01 January, 2020.
137 . Substituted for the Words "due date for furnishing of statement for the month of
September" by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022
138.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "Section 37".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 88

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 subsection (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.
[(15) The operator shall not be allowed to furnish a statement under sub-
section (4) after the expiry of a period of three years from the due date of
furnishing the said statement:
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 an operator or a class of operators to furnish a statement under
sub-section (4), even after the expiry of the said period of three years from the
due date of furnishing the said statement.]139
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.
53. Transfer of input tax credit -
On utilisation of input tax credit availed under this Act for payment of tax
dues under the Integrated Goods and Services Tax Act, 2017 (Act No. 13 of
2017) in accordance with the provisions of sub-section (5) of section 49, as

139
. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 89

reflected in the valid return furnished under subsection (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.
[53A. Transfer of certain amounts. Where any amount has been transferred
from the electronic cash ledger under this Act to the electronic cash ledger for
Central Tax or integrated tax or cess, the Government shall, transfer to the
Central tax account, or integrated tax account or cess account an amount
equal to the amount transferred from the electronic cash ledger, in such
manner and within such time as may be prescribed.]140

140.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020 w.e.f. 01 January, 2020.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 90

CHAPTER XI
REFUNDS
54. Refund of tax -
(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 [such form and]141manner 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 ( Act No. 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
[Two Years]142 from the last day of the quarter in which such supply was
received.
(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 also 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.

141. Substituted for the words "return furnished under section 39 in such" by the Uttar
Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published
Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September
29, 2022

142. Substituted for the words "six month" by the Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 91

(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 subsection (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 per
cent. of the total amount so claimed, [omitted]143, 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.
(7) The proper officer shall issue the order under subsection (5) within sixty
days from the date of receipt of application complete in all respects.
(8) Notwithstanding anything contained in subsection (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 [import and exports]144 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 subsection (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;

143. The words "excluding the amount of input tax credit provisionally accepted" omitted by

The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023)
Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August
21, 2023
144.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "zero rated supplies".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 92

(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.
[(8A) Where the Central Government has disbursed the refund of the State
tax, the Government shall transfer an amount equal to the amount so
refunded, to the Central Government.]145
(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 there under 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 [omitted]146 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.
(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 per cent. as may be notified on the

145. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act

No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
146. The Words " under sub-section (3)" omitted by the Uttar Pradesh Goods and Services Tax

(Amendment) Act, 2022 (U. P. Act. No. 11 of 2022) Published Vide Notification No. No. 497
(2)/LXXIX-V-1-2022-1-ka-10-2022 Dated Lucknow, September 29, 2022

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 93

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 subsection (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 subsection (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;
[(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]147
(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-

147
. Inserted by the Uttar Pradesh Goods and Services Tax (Amendment) Act, 2022 (U. P. Act.
No. 11 of 2022) Published Vide Notification No. No. 497 (2)/LXXIX-V-1-2022-1-ka-10-2022
Dated Lucknow, September 29, 2022

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 94

(i) receipt of payment in convertible foreign exchange [or in

Indian rupees wherever permitted by the Reserve Bank of
India]148, 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;
(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 clause (ii)
of the first proviso to sub-section (3), the due date for furnishing of
return under section 39 for the period in which such claim for refund
arises]149
(f) in the case where tax is paid provisionally under this Act or the rules
made there under, 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.
55. Refund in certain cases -
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 ( Act No. 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.
56. Interest on delayed refunds -
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 per cent. 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 [for the period of delay beyond sixty days from the date
of receipt of such application till the date of refund of such tax, to be

148.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
149. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.

Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18

Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019. Prior to substitution clause
reads as under :-
(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;
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 95

computed in such manner and subject to such conditions and restrictions as

may be prescribed]150:
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 per cent. 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).
57. Consumer Welfare Fund -
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.
58. Utilisation of Fund -
(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.

150. Substituted for the words "for the period of delay beyond sixty days from the date of receipt

of such application till the date of refund of such tax, to be computed in such manner and
subject to such conditions and restrictions as may be prescribed" by The Uttar Pradesh Goods
and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification
No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 96

CHAPTER- XII
ASSESSMENT
59. Self-assessment -
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.
60. Provisional assessment -
(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.
(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 there under, 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 subsection (3), subject to the provisions of sub-
section (8) of section 54, interest shall be paid on such refund as provided in
section 56.
61. Scrutiny of returns -
(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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 97

(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 measure in his return for the month
in which the discrepancy is accepted, the proper officer may initiate
appropriate action including those under section 65or section 66 or section
67, or proceed to determine the tax and other dues under section 73 or
section 74.
62. Assessment of non-filers of returns -
(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 judgment 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 [sixty days]151
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.
[Provided that where the registered person fails to furnish a valid return
within sixty days of the service of the assessment order under sub-section (1),
he may furnish the same within a further period of sixty days on payment of
an additional late fee of one hundred rupees for each day of delay beyond
sixty days of the service of the said assessment order and in case he furnishes
valid return within such extended period, the said assessment order shall be
deemed to have been withdrawn, but the liability to pay interest under sub-
section (1) of section 50 or to pay late fee under section 47 shall continue.]152
63. Assessment of unregistered persons -
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 subsection (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 judgement for the relevant
tax periods and issue an assessment order within a period of five years from

151
. Substituted for the Words "thirty days" by The Uttar Pradesh Goods and Services Tax
(Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-
V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023
152. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 98

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.
64. Summary assessment in certain special cases -
(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 subsection (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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 99

CHAPTER XIII
AUDIT
65. Audit by tax authorities -
(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.
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.
66. Special audit -
(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

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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 there under.
(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 subsection (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.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 101

CHAPTER XIV
INSPECTION, SEARCH, SEIZURE AND ARREST
67. Power of inspection, search and seizure -
(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 there under 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.
(3) The documents, books or things referred to in subsection (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 there under, 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 there from

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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 (Act No. 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.
(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 there under 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.

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68. Inspection of goods in movement -

(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.
69. Power to arrest -
(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 subsection (1) of section 132which is punishable under clause (i)
or (ii) of subsection
(1), or subsection (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 subsection (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 (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;
(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
70. Power to summon persons to give evidence and produce documents -
(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 (Act No. 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 (Act
No. 45 of 1860) of the Indian Penal Code.

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71. Access to business premises -

(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 subsection (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 (Act No. 18 of 2013);
(v) the income-tax audit report, if any, under section 44AB of the
Income-tax Act, 1961 (Act No. 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.
72. Officers to assist proper officers -
(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.

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CHAPTER XV
DEMANDS AND RECOVERY
73. 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 -
(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 wilful misstatement 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 50and a penalty leviable under
the provisions of this Act or the rules made there under.
(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 subsection (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 subsection (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
subsection (3), in respect of the tax so paid or any penalty payable under the
provisions of this Act or the rules made there under.
(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 subsection (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.

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(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 per cent. 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 subsection (6) or sub-section (8),
penalty under subsection (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.
74. 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) 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 wilful misstatement 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 subsection (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 subsection (1), on
the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be
service of notice under subsection (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 subsection (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 per cent. 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 there under.
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(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 subsection (1)pays the said
tax along with interest payable under section 50 and a penalty equivalent to
twenty five per cent. 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 per cent. 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;
(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 and 125]153 are deemed to be concluded.
Explanation 2.- For the purposes of this Act, the expression "suppression"
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 there under, or failure to furnish
any information on being asked for, in writing, by the proper officer.
75. General provisions relating to determination of tax -
(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

153.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021 for the words and figures "sections 122, 125, 129 and 130".
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 108

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.
(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 subsection (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 section74, 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

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payable on such tax remains unpaid, the same shall be recovered under the
provisions of section 79.
[Explanation.––For the purposes of this sub-section, the expression "self-
assessed tax" shall include the tax payable in respect of details of outward
supplies furnished under section 37, but not included in the return furnished
under section 39.]154
(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.
76. Tax collected but not paid to Government -
(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 there under 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.
(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 subsection (1) or subsection (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.

154.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act
No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 110

(9) The amount paid to the Government under subsection (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.
77. Tax wrongfully collected and paid to Central Government or State
Government -
(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.
78. Initiation of recovery proceedings -
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.
79. Recovery of tax -
(1) Where any amount payable by a person to the Government under any of
the provisions of this Act or the rules made there under 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
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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 there under 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;
(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 subclause (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
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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 there under
as if it were an arrear of land revenue;
(f) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (Act No. 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 there under
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 there under 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 subsection.
(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 there
under 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.
[EXPLANATION.-For the purposes of this section, the word person shall
include "distinct persons" as referred to in sub-section (4) or, as the case may
be, sub-section (5) of section 25.]155
80. Payment of tax and other amount in instalments -
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

155.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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due and payable forthwith and shall, without any further notice being served
on the person, be liable for recovery.
81. Transfer of property to be void in certain cases -
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:
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.
82. Tax to be first charge on property -
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 (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.
83. Provisional attachment to protect revenue in certain cases -
[(1) Where, after the initiation of any proceeding under Chapter XII, Chapter
XIV or Chapter XV, 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 or any person specified in sub-
section (1A) of section 122, in such manner as may be prescribed.]156
(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).
84. Continuation and validation of certain recovery proceedings-
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

156.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to substitution sub-section reads as under :-
(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.
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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;
(ii) the Commissioner shall give intimation of such reduction to
him and to the appropriate authority with whom recovery
proceedings is pending;
(iii) any recovery proceedings initiated on the basis of the
demand served upon him prior to the disposal of such appeal,
revision or other proceedings may be continued in relation to the
amount so reduced from the stage at which such proceedings
stood immediately before such disposal.

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CHAPTER XVI
LIABILITY TO PAY IN CERTAIN CASES
85. Liability in case of transfer of business -
(1) Where a taxable person, liable to pay tax under this Act, transfers his
business in whole or in part, by sale, gift, lease, leave and license, hire or in
any other manner whatsoever, the taxable person and the person to whom the
business is so transferred shall, jointly and severally, be liable wholly orto the
extent of such transfer, to pay the tax, interest or any penalty due from the
taxable person upto the time of such transfer, whether such tax, interest or
penalty has been determined before such transfer, but has remained unpaid
or is determined thereafter.
(2) Where the transferee of a business referred to in sub-section (1) carries on
such business either in his own name or in some other name, he shall be
liable to pay tax on the supply of goods or services or both effected by him
with effect from the date of such transfer and shall, if he is a registered person
under this Act, apply within the prescribed time for amendment of his
certificate of registration.
86. Liability of agent and principal -
Where an agent supplies or receives any taxable goods on behalf of his
principal, such agent and his principal shall, jointly and severally, be liable to
pay the tax payable on such goods under this Act.
87. Liability in case of amalgamation or merger of companies -
(1) When two or more companies are amalgamated or merged in pursuance of
an order of court or of Tribunal or otherwise and the order is to take effect
from a date earlier to the date of the order and any two or more of such
companies have supplied or received any goods or services or both to or from
each other during the period commencing on the date from which the order
takes effect till the date of the order, then such transactions of supply and
receipt shall be included in the turnover of supply or receipt of the respective
companies and they shall be liable to pay tax accordingly.
(2) Notwithstanding anything contained in the said order, for the purposes of
this Act, the said two or more companies shall be treated as distinct
companies for the period up to the date of the said order and the registration
certificates of the said companies shall be cancelled with effect from the date
of the said order.
88. Liability in case of company in liquidation -
(1) When any company is being wound up whether under the orders of a court
or Tribunal or otherwise, every person appointed as receiver of any assets of a
company (hereafter in this section referred to as the "liquidator"), shall, within
thirty days after his appointment, give intimation of his appointment to the
Commissioner.
(2) The Commissioner shall, after making such inquiry or calling for such
information as he may deem fit, notify the liquidator within three months
from the date on which he receives intimation of the appointment of the
liquidator, the amount which in the opinion of the Commissioner would be
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sufficient to provide for any tax, interest or penalty which is then, or is likely
thereafter to become, payable by the company.
(3) When any private company is wound up and any tax, interest or penalty
determined under this Act on the company for any period, whether before or
in the course of or after its liquidation, cannot be recovered, then every person
who was a director of such company at any time during the period for which
the tax was due shall, jointly and severally, be liable for the payment of such
tax, interest or penalty, unless he proves to the satisfaction of the
Commissioner that such no recovery cannot be attributed to any gross
neglect, misfeasance or breach of duty on his part in relation to the affairs of
the company.
89. Liability of directors of private company -
(1) Notwithstanding anything contained in the Companies Act, 2013 (Act No.
18 of 2013), where any tax, interest or penalty due from a private company in
respect of any supply of goods or services or both for any period cannot be
recovered, then, every person who was a director of the private company
during such period shall, jointly and severally, be liable for the payment of
such tax, interest or penalty unless he proves that the non-recovery cannot be
attributed to any gross neglect, misfeasance or breach of duty on his part in
relation to the affairs of the company.
(2) Where a private company is converted into a public company and the tax,
interest or penalty in respect of any supply of goods or services or both for any
period during which such company was a private company cannot be
recovered before such conversion, then, nothing contained in sub-section (1)
shall apply to any person who was a director of such private company in
relation to any tax, interest or penalty in respect of such supply of goods or
services or both of such private company:
Provided that nothing contained in this sub-section shall apply to any
personal penalty imposed on such director.
90. Liability of partners of firm to pay tax -
Notwithstanding any contract to the contrary and any other law for the time
being in force, where any firm is liable to pay any tax, interest or penalty
under this Act, the firm and each of the partners of the firm shall, jointly and
severally, be liable for such payment:
Provided that where any partner retires from the firm, he or the firm, shall
intimate the date of retirement of the said partner to the Commissioner by a
notice in that behalf in writing and such partner shall be liable to pay tax,
interest or penalty due upto the date of his retirement whether determined or
not, on that date:
Provided further that if no such intimation is given within one month from the
date of retirement, the liability of such partner under the first proviso shall
continue until the date on which such intimation is received by the
Commissioner.

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91. Liability of guardians, trustees etc. -

Where the business in respect of which any tax, interest or penalty is payable
under this Act is carried on by any guardian, trustee or agent of a minor or
other incapacitated person on behalf of and for the benefit of such minor or
other incapacitated person, the tax, interest or penalty shall be levied upon
and recoverable from such guardian, trustee or agent in like manner and to
the same extent as it would be determined and recoverable from any such
minor or other incapacitated person, as if he were a major or capacitated
person and as if he were conducting the business himself, and all the
provisions of this Act or the rules made there under shall apply accordingly.
92. Liability of Court of Wards, etc. -
Where the estate or any portion of the estate of a taxable person owning a
business in respect of which any tax, interest or penalty is payable under this
Act is under the control of the Court of Wards, the Administrator General, the
Official Trustee or any receiver or manager (including any person, whatever be
his designation, who in fact manages the business) appointed by or under any
order of a court, the tax, interest or penalty shall be levied upon and be
recoverable from such Court of Wards, Administrator General, Official
Trustee, receiver or manager in like manner and to the same extent as it
would be determined and be recoverable from the taxable person as if he were
conducting the business himself, and all the provisions of this Act or the rules
made there under shall apply accordingly.
93. Special provisions regarding liability to pay tax, interest or penalty
in certain cases -
(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016
(Act No. 31 of 2016) , where a person, liable to pay tax, interest or penalty
under this Act, dies, then-
(a) if a business carried on by the person is continued after his death
by his legal representative or any other person, such legal
representative or other person, shall be liable to pay tax, interest or
penalty due from such person under this Act; and
(b) if the business carried on by the person is discontinued, whether
before or after his death, his legal representative shall be liable to pay,
out of the estate of the deceased, to the extent to which the estate is
capable of meeting the charge, the tax, interest or penalty due from
such person under this Act, whether such tax, interest or penalty has
been determined before his death but has remained unpaid or is
determined after his death.
(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016
(Act No. 31 of 2016), where a taxable person, liable to pay tax, interest or
penalty under this Act, is a Hindu Undivided Family or an association of
persons and the property of the Hindu Undivided Family or the association of
persons is partitioned amongst the various members or groups of members,
then, each member or group of members shall, jointly and severally, be liable
to pay the tax, interest or penalty due from the taxable person under this Act
upto the time of the partition whether such tax, penalty or interest has been

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determined before partition but has remained unpaid or is determined after

the partition.
(3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016
(Act No. 31 of 2016), where a taxable person, liable to pay tax, interest or
penalty under this Act, is a firm, and the firm is dissolved, then, every person
who was a partner shall, jointly and severally, be liable to pay the tax, interest
or penalty due from the firm under this Act upto the time of dissolution
whether such tax, interest or penalty has been determined before the
dissolution, but has remained unpaid or is determined after dissolution.
(4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016
(Act No. 31 of 2016), where a taxable person liable to pay tax, interest or
penalty under this Act,-
(a) is the guardian of a ward on whose behalf the business is carried on
by the guardian; or
(b) is a trustee who carries on the business under a trust for a
beneficiary, then, if the guardianship or trust is terminated, the ward
or the beneficiary shall be liable to pay the tax, interest or penalty due
from the taxable person upto the time of the termination of the
guardianship or trust, whether such tax, interest or penalty has been
determined before the termination of guardianship or trust but has
remained unpaid or is determined thereafter.
94. Liability in other cases -
(1) Where a taxable person is a firm or an association of persons or a Hindu
Undivided Family and such firm, association or family has discontinued
business-
(a) the tax, interest or penalty payable under this Act by such firm,
association or family upto the date of such discontinuance may be
determined as if no such discontinuance had taken place; and
(b) every person who, at the time of such discontinuance, was a partner
of such firm, or a member of such association or family, shall,
notwithstanding such discontinuance, jointly and severally, be liable
for the payment of tax and interest determined and penalty imposed
and payable by such firm, association or family, whether such tax and
interest has been determined or penalty imposed prior to or after such
discontinuance and subject as aforesaid, the provisions of this Act
shall, so far as may be, apply as if every such person or partner or
member were himself a taxable person.
(2) Where a change has occurred in the constitution of a firm or an
association of persons, the partners of the firm or members of association, as
it existed before and as it exists after the reconstitution, shall, without
prejudice to the provisions of section 90, jointly and severally, be liable to pay
tax, interest or penalty due from such firm or association for any period before
its reconstitution.
(3) The provisions of sub-section (1) shall, so far as may be, apply where the
taxable person, being a firm or association of persons is dissolved or where
the taxable person, being a Hindu Undivided Family, has effected partition
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with respect to the business carried on by it and accordingly references in

that sub-section to discontinuance shall be construed as reference to
dissolution or to partition.
Explanation.- For the purposes of this Chapter,-
(i) a "Limited Liability Partnership" formed and registered under the
provisions of the Limited Liability Partnership Act, 2008 (Act No. 6 of
2009) shall also be considered as a firm;
(ii) "court" means the District Court, High Court or Supreme Court.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 120

CHAPTER XVII
ADVANCE RULING
95. Definitions -
In this Chapter, unless the context otherwise requires,-
95(a). "advance ruling"
In this Chapter, unless the context otherwise requires,-
(a). "advance ruling" means a decision provided by the Authority or the
Appellate Authority [or the National Appellate Authority]157 to an applicant on
matters or on questions specified in subsection (2) of section 97 or sub-
section (1) of section 100 [or of section 101C]158, in relation to the supply of
goods or services or both being undertaken or proposed to be undertaken by
the applicant;
95(b). "Appellate Authority"
In this Chapter, unless the context otherwise requires,-
(b). "Appellate Authority" means the Appellate Authority for Advance Ruling
constituted under section 99;
95(c). "applicant"
In this Chapter, unless the context otherwise requires,-
(c). "applicant" means any person registered or desirous of obtaining
registration under this Act;
95(d). "application"
In this Chapter, unless the context otherwise requires,-
(d). "application" means an application made to the Authority under sub-
section (1) of section 97;
95(e). "Authority"
In this Chapter, unless the context otherwise requires,-
(e). "Authority" means the Authority for Advance Ruling, constituted under
section 96.
[(f). National Appellate Authority” means the National Appellate Authority
for Advance Ruling referred to in section 101A.]159

157. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act

No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
158.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
159.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
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96. Constitution of Authority for Advance Ruling -

(1) The Government shall, by notification, constitute an Authority to be known
as the Uttar Pradesh Authority for Advance Ruling:
Provided that the Government may, on the recommendation of the Council,
notify any Authority located in another State to act as the Authority for the
State.
(2) The Authority shall consist of-
(i) one member from amongst the officers of central tax; and
(ii) one member from amongst the officers of State tax, to be appointed
by the Central Government and the State Government respectively.
(3) The qualifications, the method of appointment of the members and the
terms and conditions of their services shall be such as may be prescribed.
97. Application for advance ruling -
(1) An applicant desirous of obtaining an advance ruling under this Chapter
may make an application in such form and manner and accompanied by such
fee as may be prescribed, stating the question on which the advance ruling is
sought.
(2) The question on which the advance ruling is sought under this Act, shall
be in respect of,-
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or
both;
(d) admissibility of input tax credit of tax paid or deemed to have been
paid;
(e) determination of the liability to pay tax on any goods or services or
both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to
any goods or services or both amounts to or results in a supply of
goods or services or both, within the meaning of that term.
98. Procedure on receipt of application -
(1) On receipt of an application, the Authority shall cause a copy thereof to be
forwarded to the concerned officer and, if necessary, call upon him to furnish
the relevant records:
Provided that where any records have been called for by the Authority in any
case, such records shall, as soon as possible, be returned to the said
concerned officer.
(2) The Authority may, after examining the application and the records called
for and after hearing the applicant or his authorised representative and the

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concerned officer or his authorised representative, by order, either admit or

reject the application:
Provided that the Authority shall not admit the application where the question
raised in the application is already pending or decided in any proceedings in
the case of an applicant under any of the provisions of this Act:
Provided further that no application shall be rejected under this sub-section
unless an opportunity of hearing has been given to the applicant:
Provided also that where the application is rejected, the reasons for such
rejection shall be specified in the order.
(3) A copy of every order made under sub-section (2) shall be sent to the
applicant and to the concerned officer.
(4) Where an application is admitted under subsection (2), the Authority shall,
after examining such further material as may be placed before it by the
applicant or obtained by the Authority and after providing an opportunity of
being heard to the applicant or his authorised representative as well as to the
concerned officer or his authorised representative, pronounce its advance
ruling on the question specified in the application.
(5) Where the members of the Authority differ on any question on which the
advance ruling is sought, they shall state the point or points on which they
differ and make a reference to the Appellate Authority for hearing and
decision on such question.
(6) The Authority shall pronounce its advance ruling in writing within ninety
days from the date of receipt of application.
(7) A copy of the advance ruling pronounced by the Authority duly signed by
the members and certified in such manner as may be prescribed shall be sent
to the applicant, the concerned officer and the jurisdictional officer after such
pronouncement.
99. Constitution of Appellate Authority for Advance Ruling -
(1) The Government shall, by notification, constitute an Authority to be known
as Uttar Pradesh Appellate Authority for Advance Ruling for Goods and
Services Tax for hearing appeals against the advance ruling pronounced by
the Advance Ruling Authority: consisting of-
(i) the Chief Commissioner of Central Tax as designated by the Board,
and
(ii) the Commissioner of state tax Provided that the Government may,
on the recommendations of the Council, notify any Appellate Authority
located in another State or Union territory to act as the Appellate
Authority for the State.
100. Appeal to the Appellate Authority -
(1) The concerned officer, the jurisdictional officer or an applicant aggrieved by
any advance ruling pronounced under subsection (4) of section 98, may
appeal to the Appellate Authority.
(2) Every appeal under this section shall be filed within a period of thirty days
from the date on which the ruling sought to be appealed against is
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communicated to the concerned officer, the jurisdictional officer and the

applicant:
Provided that the Appellate Authority may, if it is satisfied that the appellant
was prevented by a sufficient cause from presenting the appeal within the
said period of thirty days, allow it to be presented within a further period not
exceeding thirty days.
(3) Every appeal under this section shall be in such form, accompanied by
such fee and verified in such manner as may be prescribed.
101. Orders of Appellate Authority -
(1) The Appellate Authority may, after giving the parties to the appeal or
reference an opportunity of being heard, pass such order as it thinks fit,
confirming or modifying the ruling appealed against or referred to.
(2) The order referred to in sub-section (1) shall be passed within a period of
ninety days from the date of filing of the appeal under section 100 or a
reference under sub-section (5) of section 98.
(3) Where the members of the Appellate Authority differ on any point or points
referred to in appeal or reference, it shall be deemed that no advance ruling
can be issued in respect of the question under the appeal or reference.
(4) A copy of the advance ruling pronounced by the Appellate Authority duly
signed by the Members and certified in such manner as may be prescribed
shall be sent to the applicant, the concerned officer, the jurisdictional officer
and to the Authority after such pronouncement.
[101A. Constitution of National Appellate Authority for Advance Ruling.
Subject to the provisions of this chapter, for the purposes of this Act, the
National Appellate Authority for Advance Ruling constituted under section
101A of the Central Goods and Services Tax Act, shall be deemed to be the
National Appellate Authority for Advance Ruling under this Act.
101B. Appeal to National Appellate Authority. Where, in respect of the
questions referred to in sub-section (2) of section 97, conflicting Advance
Rulings are given by the Appellate Authorities of two or more States or Union
territories or both under sub-section (1) or sub-section (3) of section 101, any
officer authorised by the Commissioner or an applicant, being distinct person
referred to in section 25 aggrieved by such Advance Ruling, may prefer an
appeal to National Appellate Authority:
Provided that the officer shall be from the States in which such
Advance Rulings have been given.
(2) Every appeal under this section shall be filed within a period of
thirty days from the date on which the ruling sought to be appealed against is
communicated to the applicants, concerned officers and jurisdictional officers:
Provided that the officer authorised by the Commissioner may file
appeal within a period of ninety days from the date on which the ruling
sought to be appealed against is communicated to the concerned officer or the
jurisdictional officer:
Provided further that the National Appellate Authority may, if it is
satisfied that the appellant was prevented by a sufficient cause from
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presenting the appeal within the said period of thirty days, or as the case may
be, ninety days, allow such appeal to be presented within a further period not
exceeding thirty days.
Explanation.––For removal of doubts, it is clarified that the period of
thirty days or as the case may be, ninety days shall be counted from the date
of communication of the last of the conflicting rulings sought to be appealed
against.
(3) Every appeal under this section shall be in such form, accompanied
by such fee and verified in such manner as may be prescribed.
101C. Order of National Appellate Authority. (1) The National Appellate
Authority may, after giving an opportunity of being heard to the applicant, the
officer authorised by the Commissioner, all Principal Chief Commissioners of
Central tax and Chief Commissioner and Commissioner of State tax of all
States and Chief Commissioner and Commissioner of Union territory tax of all
Union territories, pass such order as it thinks fit, confirming or modifying the
rulings appealed against.
(2) If the members of the National Appellate Authority differ in opinion
on any point, it shall be decided according to the opinion of the majority.
(3) The order referred to in sub-section (1) shall be passed as far as
possible within a period of ninety days from the date of filing of the appeal
under section 101B.
(4) A copy of the Advance Ruling pronounced by the National Appellate
Authority shall be duly signed by the Members and certified in such manner
as may be prescribed and shall be sent to the applicant, the officer authorised
by the Commissioner, the Board, the Chief Commissioner and Commissioner
of State tax of all States and Chief Commissioner and Commissioner of Union
territory tax of all Union territories and to the Authority or Appellate
Authority, as the case may be, after such pronouncement.]160
102. Rectification of advance ruling -
The Authority or the Appellate Authority [or the National Appellate
Authority]161 may amend any order passed by it under section 98 or section
101 [or section 101C, respectively]162, so as to rectify any error apparent on
the face of the record, if such error is noticed by the Authority or the Appellate
Authority [or the National Appellate Authority]163 on its own accord, or is

160.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
161. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act

No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
162.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
163.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
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brought to its notice by the concerned officer, the jurisdictional officer, or the
applicant [appellant, the Authority or the Appellate Authority]164 within a
period of six months from the date of the order:
Provided that no rectification which has the effect of enhancing the tax
liability or reducing the amount of admissible input tax credit shall be made
unless the applicant or the appellant has been given an opportunity of being
heard.
103. Applicability of advance ruling -
(1) The advance ruling pronounced by the Authority or the Appellate Authority
under this Chapter shall be binding only-
(a) on the applicant who had sought it in respect of any matter referred
to in subsection (2) of section 97 for advance ruling;
(b) on the concerned officer or the jurisdictional officer in respect of the
applicant.
[(1A) The Advance Ruling pronounced by the National Appellate Authority
under this Chapter shall be binding on—
(a) the applicants, being distinct persons, who had sought the
ruling under sub-section (1) of section 101B and all registered persons
having the same Permanent Account Number issued under the Income-
tax Act, 1961165;
(b) the concerned officers and the jurisdictional officers in
respect of the applicants referred to in clause (a) and the registered
persons having the same Permanent Account Number issued under the
Income-tax Act, 1961.166]167
(2) The advance ruling referred to in sub-section (1) [and sub-section (1A)]168
shall be binding unless the law, facts or circumstances supporting the
original advance ruling have changed.

164. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P.
Act No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March
12, 2020 for "or the appellant".
165. 43 of 1961.
166. 43 of 1961.
167.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
168.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
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104. Advance ruling to be void in certain circumstances -

(1) Where the Authority or the Appellate Authority [or the National Appellate
Authority]169 finds that advance ruling pronounced by it under sub-section (4)
of section 98 or under subsection (1) of section 101 [or under section 101C]170
has been obtained by the applicant or the appellant by fraud or suppression
of material facts or misrepresentation of facts, it may, by order, declare such
ruling to be void ab-initio and thereupon all the provisions of this Act or the
rules made there under shall apply to the applicant or the appellant as if such
advance ruling had never been made:
Provided that no order shall be passed under this subsection unless an
opportunity of being heard has been given to the applicant or the appellant.
Explanation.-The period beginning with the date of such advance ruling and
ending with the date of order under this subsection shall be excluded while
computing the period specified in sub-sections (2) and (10) of section 73 or
sub-sections (2) and (10) of section 74.
(2) A copy of the order made under sub-section (1) shall be sent to the
applicant, the concerned officer and the jurisdictional officer.
105. [Powers of Authority, Appellate Authority and National Appellate
Authority.]171 -
(1) The Authority or the Appellate Authority [or the National Appellate
Authority]172 shall, for the purpose of exercising its powers regarding -
(a) discovery and inspection;
(b) enforcing the attendance of any person and examining him on oath;
(c) issuing commissions and compelling production of books of account
and other records, have all the powers of a civil court under the Code of
Civil Procedure, 1908 (Act No. 5 of 1908)
(2) The Authority or the Appellate Authority [or the National Appellate
Authority]173 shall be deemed to be a civil court for the purposes of section
195, but not for the purposes of Chapter XXVI of the Code of Criminal
Procedure, 1973 (Act No. 2 of 1974), and every proceeding before the

169.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
170.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
171. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P.
Act No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March
12, 2020 for "Powers of Authority and Appellate Authority".
172.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
173.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
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Authority or the Appellate Authority shall be deemed to be a judicial

proceedings within the meaning of sections 193 and 228, and for the purpose
of section 196 of the Indian Penal Code (Act No. 45 of 1860).
106. [Procedure of Authority, Appellate Authority and National Appellate
Authority.]174 -
The Authority or the Appellate Authority [or the National Appellate
Authority]175 shall, subject to the provisions of this Chapter, have power to
regulate its own procedure.

174. Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P.
Act No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March
12, 2020 for "Procedure of Authority and Appellate Authority."
175.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020.
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CHAPTER-XVIII
APPEALS AND REVISION
107. Appeals to Appellate Authority -
(1) Any person aggrieved by any decision or order passed under this Act or the
Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017) by an
adjudicating authority may appeal to such Appellate Authority as may be
prescribed within three months from the date on which the said decision or
order is communicated to such person.
(2) The Commissioner may, on his own motion, or upon request from the
Commissioner of central tax, call for and examine the record of any
proceeding in which an adjudicating authority has passed any decision or
order under this Act or the Central Goods and Services Tax Act, 2017 (Act No.
12 of 2017) for the purpose of satisfying himself as to the legality or propriety
of the said decision or order and may, by order, direct any officer subordinate
to him to apply to the Appellate Authority within six months from the date of
communication of the said decision or order for the determination of such
points arising out of the said decision or order as may be specified by the
Commissioner in his order.
(3) Where, in pursuance of an order under sub-section (2), the authorised
officer makes an application to the Appellate Authority, such application shall
be dealt with by the Appellate Authority as if it were an appeal made against
the decision or order of the adjudicating authority and such authorised officer
were an appellant and the provisions of this Act relating to appeals shall apply
to such application.
(4) The Appellate Authority may, if he is satisfied that the appellant was
prevented by sufficient cause from presenting the appeal within the aforesaid
period of three months or six months, as the case may be, allow it to be
presented within a further period of one month.
(5) Every appeal under this section shall be in such form and shall be verified
in such manner as may be prescribed.
(6) No appeal shall be filed under sub-section (1), unless the appellant has
paid-
(a) in full, such part of the amount of tax, interest, fine, fee and penalty
arising from the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of tax in
dispute arising from the said order [subject to a maximum of twenty-
five crore rupees]176, in relation to which the appeal has been filed.
[Provided that no appeal shall be filed against an order under sub-section (3)
of section 129, unless a sum equal to twenty-five percent of the penalty has
been paid by the appellant.]177

176.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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(7) Where the appellant has paid the amount under sub-section (6), the
recovery proceedings for the balance amount shall be deemed to be stayed.
(8) The Appellate Authority shall give an opportunity to the appellant of being
heard.
(9) The Appellate Authority may, if sufficient cause is shown at any stage of
hearing of an appeal, grant time to the parties or any of them and adjourn the
hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to
a party during hearing of the appeal.
(10) The Appellate Authority may, at the time of hearing of an appeal, allow an
appellant to add any ground of appeal not specified in the grounds of appeal,
if it is satisfied that the omission of that ground from the grounds of appeal
was not wilful or unreasonable.
(11) The Appellate Authority shall, after making such further inquiry as may
be necessary, pass such order, as it thinks just and proper, confirming,
modifying or annulling the decision or order appealed against but shall not
refer the case back to the adjudicating authority that passed the said decision
or order:
Provided that an order enhancing any fee or penalty or fine in lieu of
confiscation or confiscating goods of greater value or reducing the amount of
refund or input tax credit shall not be passed unless the appellant has been
given a reasonable opportunity of showing cause against the proposed order:
Provided further that where the Appellate Authority is of the opinion that any
tax has not been paid or short-paid or erroneously refunded, or where input
tax credit has been wrongly availed or utilised, no order requiring the
appellant to pay such tax or input tax credit shall be passed unless the
appellant is given notice to show cause against the proposed order and the
order is passed within the time limit specified under section 73 or section 74.
(12) The order of the Appellate Authority disposing of the appeal shall be in
writing and shall state the points for determination, the decision thereon and
the reasons for such decision.
(13) The Appellate Authority shall, where it is possible to do so, hear and
decide every appeal within a period of one year from the date on which it is
filed:
Provided that where the issuance of order is stayed by an order of a court or
Tribunal, the period of such stay shall be excluded in computing the period of
one year.
(14) On disposal of the appeal, the Appellate Authority shall communicate the
order passed by it to the appellant, respondent and to the adjudicating
authority.

177.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act
No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021.
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(15) A copy of the order passed by the Appellate Authority shall also be sent to
the Commissioner or the authority designated by him in this behalf and the
jurisdictional Commissioner of central tax or an authority designated by him
in this behalf.
(16) Every order passed under this section shall, subject to the provisions of
section 108 or section 113 or section 117 or section 118 be final and binding
on the parties.
108. Powers of Revisional Authority -
(1) Subject to the provisions of section 121 and any rules made there under,
the Revisional Authority may, on his own motion, or upon information
received by him or on request from the Commissioner of central tax, call for
and examine the record of any proceedings, and if he considers that any
decision or order passed under this Act or under the Central Goods and
Services Tax Act, 2017 (Act No. 12 of 2017) by any officer subordinate to him
is erroneous in so far as it is prejudicial to the interest of revenue and is
illegal or improper or has not taken into account certain material facts,
whether available at the time of issuance of the said order or not or in
consequence of an observation by the Comptroller and Auditor General of
India, he may, if necessary, stay the operation of such decision or order for
such period as he deems fit and after giving the person concerned an
opportunity of being heard and after making such further inquiry as may be
necessary, pass such order, as he thinks just and proper, including
enhancing or modifying or annulling the said decision or order.
(2) The Revisional Authority shall not exercise any power under sub-section
(1), if-
(a) the order has been subject to an appeal under section 107 or
section 112 or section 117 or section 118; or
(b) the period specified under sub-section (2) of section 107 has not yet
expired or more than three years have expired after the passing of the
decision or order sought to be revised; or
(c) the order has already been taken for revision under this section at
an earlier stage; or
(d) the order has been passed in exercise of the powers under sub-
section (1):
Provided that the Revisional Authority may pass an order under sub-section
(1) on any point which has not been raised and decided in an appeal referred
to in clause (a) of sub-section (2), before the expiry of a period of one year from
the date of the order in such appeal or before the expiry of a period of three
years referred to in clause (b) of that sub-section, whichever is later.
(3) Every order passed in revision under sub-section (1) shall, subject to the
provisions of section 113 or section 117 or section 118, be final and binding
on the parties.
(4) If the said decision or order involves an issue on which the Appellate
Tribunal or the High Court has given its decision in some other proceedings
and an appeal to the High Court or the Supreme Court against such decision
of the Appellate Tribunal or the High Court is pending, the period spent
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between the date of the decision of the Appellate Tribunal and the date of the
decision of the High Court or the date of the decision of the High Court and
the date of the decision of the Supreme Court shall be excluded in computing
the period of limitation referred to in clause (b) of sub-section (2) where
proceedings for revision have been initiated by way of issue of a notice under
this section.
(5) Where the issuance of an order under sub-section (1) is stayed by the
order of a court or Appellate Tribunal, the period of such stay shall be
excluded in computing the period of limitation referred to in clause (b) of sub-
section (2).
(6) For the purposes of this section, the term,-
(i) "record" shall include all records relating to any proceedings under
this Act available at the time of examination by the Revisional
Authority;
(ii) "decision" shall include intimation given by any officer lower in rank
than the Revisional Authority.
[109. Appellate Tribunal -
Subject to the provisions of this Chapter, the Goods and Services Tax
Appellate Tribunal constituted under Central Goods and Services Tax Act,
2017 shall be the Appellate Tribunal for hearing appeals against the orders
passed by the Appellate Authority or the Revisional Authority under this
Act.]178
[110. Omitted]179
111. Procedure before Appellate Tribunal -
(1) The Appellate Tribunal shall not, while disposing of any proceedings before
it or an appeal before it, be bound by the procedure laid down in the Code of

178.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. Prior to Substitution the Section reads as under :

"(1) Subject to the provisions of this Chapter, the Goods and Services Tax Tribunal
constituted under the Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017)
shall be the Appellate Tribunal for hearing appeals against the orders passed by the
Appellate Authority or the Revisional Authority under this Act.
(2) The constitution and jurisdiction of the State Bench and the Area Benches located
in the State shall be in accordance with the provisions of section 109 of the Central
Goods and Services Tax Act, 2017 (Act No. 12 of 2017) or the rules made thereunder."

179. Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. Prior to omission the Section reads as under :
" 110. President and Members of Appellate Tribunal, their qualification,
appointment, conditions of service, etc.-
The qualifications, appointment, salary and allowances, terms of office, resignation and
removal of the President and Members of the State Bench and Area Benches shall be in
accordance with the provisions of section 110 of the Central Goods and Services Tax
Act,2017 (Act No. 12 of 2017)."
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Civil Procedure, 1908 (Act No. 5 of 1908), but shall be guided by the
principles of natural justice and subject to the other provisions of this Act and
the rules made thereunder, the Appellate Tribunal shall have power to
regulate its own procedure.
(2) The Appellate Tribunal shall, for the purposes of discharging its functions
under this Act, have the same powers as are vested in a civil court under the
Code of Civil Procedure, 1908( Act No. 5 of 1908), while trying a suit in
respect of the following matters, namely:-
(a) summoning and enforcing the attendance of any person and
examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) subject to the provisions of sections 123 and 124 of the Indian
Evidence Act, 1872 (Act No. 1 of 1872), requisitioning any public record
or document or a copy of such record or document from any office;
(e) issuing commissions for the examination of witnesses or documents;
(f) dismissing a representation for default or deciding it ex parte;
(g) setting aside any order of dismissal of any representation for default
or any order passed by it ex parte; and
(h) any other matter which may be prescribed.
(3) Any order made by the Appellate Tribunal may be enforced by it in the
same manner as if it were a decree made by a court in a suit pending therein,
and it shall be lawful for the Appellate Tribunal to send for execution of its
orders to the court within the local limits of whose jurisdiction,-
(a) in the case of an order against a company, the registered office of
the company is situated; or
(b) in the case of an order against any other person, the person
concerned voluntarily resides or carries on business or personally
works for gain.
(4) All proceedings before the Appellate Tribunal shall be deemed to be judicial
proceedings within the meaning of sections 193 and 228, and for the
purposes of section 196 of the Indian Penal Code (Act No. 45 of 1860), and the
Appellate Tribunal shall be deemed to be civil court for the purposes of section
195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (Act No. 2 of
1974)
112. Appeals to Appellate Tribunal -
(1) Any person aggrieved by an order passed against him under section 107 or
section 108 of this Act or the Central Goods and Services Tax Act, 2017 (Act
No. 12 of 2017) may appeal to the Appellate Tribunal against such order
within three months from the date on which the order sought to be appealed
against is communicated to the person preferring the appeal.180

180.The Uttar Pradesh Goods and Services Tax (Twelfth Removal of Difficulties) Order, 2020
published vide Order No. 76/2020 dated January 14, 2020 clarified as under :
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(2) The Appellate Tribunal may, in its discretion, refuse to admit any such
appeal where the tax or input tax credit involved or the difference in tax or
input tax credit involved or the amount of fine, fee or penalty determined by
such order, does not exceed fifty thousand rupees.
(3) The Commissioner may, on his own motion, or upon request from the
Commissioner of central tax, call for and examine the record of any order
passed by the Appellate Authority or the Revisional Authority under this Act
or under the Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017)
for the purpose of satisfying himself as to the legality or propriety of the said
order and may, by order, direct any officer subordinate to him to apply to the
Appellate Tribunal within six months from the date on which the said order
has been passed for determination of such points arising out of the said order
as may be specified by the Commissioner in his order.
(4) Where in pursuance of an order under sub-section (3) the authorised
officer makes an application to the Appellate Tribunal, such application shall
be dealt with by the Appellate Tribunal as if it were an appeal made against
the order under subsection (11) of section 107 or under sub-section (1) of
section 108 and the provisions of this Act shall apply to such application, as
they apply in relation to appeals filed under sub-section (1).
(5) On receipt of notice that an appeal has been preferred under this section,
the party against whom the appeal has been preferred may, notwithstanding
that he may not have appealed against such order or any part thereof, file,
within forty five days of the receipt of notice, a memorandum of cross-
objections, verified in the prescribed manner, against any part of the order
appealed against and such memorandum shall be disposed of by the
Appellate Tribunal, as if it were an appeal presented within the time specified
in sub-section (1).
(6) The Appellate Tribunal may admit an appeal within three months after the
expiry of the period referred to in subsection (1), or permit the filing of a
memorandum of cross objections within forty five days after the expiry of the
period referred to in sub-section (5), if it is satisfied that there was sufficient
cause for not presenting it within that period.

"It is hereby clarified that for the purpose of calculating, -

(a) the "three months from the date on which the order sought to be appealed against is
communicated to the person preferring the appeal" in sub-section (1) of section 112,
the start of the three months period shall be considered to be the later of the following
dates:-
(i) date of communication of order; or
(ii) the date on which the President or the State President, as the case may be,
of the Appellate Tribunal after its constitution under section 109, enters office;
(b) the "six months from the date on which the said order has been passed" in sub-
section (3) of section 112, the start of the six months period shall be considered to be
the later of the following dates:-
(i) date of communication of order; or
(ii) the date on which the President or the State President, as the case may be, of the Appellate
Tribunal after its constitution under section 109, enters office."

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(7) An appeal to the Appellate Tribunal shall be in such form, verified in such
manner and shall be accompanied by such fee, as may be prescribed.
(8) No appeal shall be filed under sub-section (1), unless the appellant has
paid-
(a) in full, such part of the amount of tax, interest, fine, fee and penalty
arising from the impugned order, as is admitted by him, and
(b) a sum equal to twenty per cent. of the remaining amount of tax in
dispute, in addition to the amount paid under sub-section (6) of the
section 107, arising from the said order [subject to a maximum of fifty
crore rupees]181, in relation to which the appeal has been filed.
(9) Where the appellant has paid the amount as per sub-section (8), the
recovery proceedings for the balance amount shall be deemed to be stayed till
the disposal of the appeal.
(10) Every application made before the Appellate Tribunal,-
(a) in an appeal for rectification of error or for any other purpose; or
(b) for restoration of an appeal or an application, shall be accompanied
by such fees as may be prescribed.
113. Orders of Appellate Tribunal -
(1) The Appellate Tribunal may, after giving the parties to the appeal an
opportunity of being heard, pass such orders thereon as it thinks fit,
confirming, modifying or annulling the decision or order appealed against or
may refer the case back to the Appellate Authority, or the Revisional Authority
or to the original adjudicating authority, with such directions as it may think
fit, for a fresh adjudication or decision after taking additional evidence, if
necessary.
(2) The Appellate Tribunal may, if sufficient cause is shown, at any stage of
hearing of an appeal, grant time to the parties or any of them and adjourn the
hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to
a party during hearing of the appeal.
(3) The Appellate Tribunal may amend any order passed by it under sub-
section (1) so as to rectify any error apparent on the face of the record, if such
error is noticed by it on its own accord, or is brought to its notice by the
Commissioner or the Commissioner of central tax or the other party to the
appeal within a period of three months from the date of the order:
Provided that no amendment which has the effect of enhancing an
assessment or reducing a refund or input tax credit or otherwise increasing
the liability of the other party, shall be made under this sub-section, unless
the party has been given an opportunity of being heard.

181.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 135

(4) The Appellate Tribunal shall, as far as possible, hear and decide every
appeal within a period of one year from the date on which it is filed.
(5) The Appellate Tribunal shall send a copy of every order passed under this
section to the Appellate Authority or the Revisional Authority, or the original
adjudicating authority, as the case may be, the appellant and the
Commissioner or the jurisdictional Commissioner of central tax.
(6) Save as provided in section 117 or section 118, orders passed by the
Appellate Tribunal on an appeal shall be final and binding on the parties.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 136

[114. Omitted]182
115. Interest on refund of amount paid for admission of appeal -
Where an amount paid by the appellant under subsection (6) of section 107 or
sub-section (8) of section 112 is required to be refunded consequent to any
order of the Appellate Authority or of the Appellate Tribunal, interest at the
rate specified under section 56 shall be payable in respect of such refund
from the date of payment of the amount till the date of refund of such
amount.
116. Appearance by authorized representative -
(1) Any person who is entitled or required to appear before an officer
appointed under this Act, or the Appellate Authority or the Appellate Tribunal
in connection with any proceedings under this Act, may, otherwise than when
required under this Act to appear personally for examination on oath or
affirmation, subject to the other provisions of this section, appear by an
authorised representative.
(2) For the purposes of this Act, the expression "authorised representative"
shall mean a person authorised by the person referred to in sub-section (1) to
appear on his behalf, being-
(a) his relative or regular employee; or
(b) an advocate who is entitled to practice in any court in India, and
who has not been debarred from practicing before any court in India; or
(c) any chartered accountant, a cost accountant or a company
secretary, who holds a certificate of practice and who has not been
debarred from practice; or
(d) a retired officer of the Commercial Tax Department of any State
Government or Union territory or of the Board who, during his service
under the Government, had worked in a post not below the rank than
that of a Group-B Gazetted officer for a period of not less than two
years:
Provided that such officer shall not be entitled to appear before any
proceedings under this Act for a period of one year from the date of his
retirement or resignation; or

182.Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. Prior to Omission Section reads as under :

"114. Financial and administrative powers of State President -

The State President shall exercise such financial and administrative powers over the
State Bench and Area Benches of the Appellate Tribunal in a State, as may be
prescribed:
Provided that the State President shall have the authority to delegate such of his
financial and administrative powers as he may think fit to any other Member or any
officer of the State Bench or Area Benches, subject to the condition that such Member
or officer shall, while exercising such delegated powers, continue to act under the
direction, control and supervision of the State President."

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 137

(e) any person who has been authorised to act as a goods and services
tax practitioner on behalf of the concerned registered person.
(3) No person,-
(a) who has been dismissed or removed from Government service; or
(b) who is convicted of an offence connected with any proceedings
under this Act, the Central Goods and Services
Tax Act, the Integrated Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act, or under the existing law or
under any of the Acts passed by a State Legislature dealing with the
imposition of taxes on sale of goods or supply of goods or services or
both; or
(c) who is found guilty of misconduct by the prescribed authority;
(d) who has been adjudged as an insolvent,
shall be qualified to represent any person under subsection (1)-
(i) for all times in case of persons referred to in clauses (a),(b) and (c);
and
(ii) for the period during which the insolvency continues in the case of a
person referred to in clause (d).
(4) Any person who has been disqualified under the provisions of the Central
Goods and Services Tax Act, 2017 (Act No. 12 of 2017) or the Goods and
Services Tax Act of any other State or the Union Territory Goods and Services
Tax Act shall be deemed to be disqualified under this Act.
117. Appeal to High Court -
(1) Any person aggrieved by any order passed by the [State Benches]183 of the
Appellate Tribunal may file an appeal to the High Court and the High Court
may admit such appeal, if it is satisfied that the case involves a substantial
question of law.
(2) An appeal under sub-section (1) shall be filed within a period of one
hundred and eighty days from the date on which the order appealed against is
received by the aggrieved person and it shall be in such form, verified in such
manner as may be prescribed:
Provided that the High Court may entertain an appeal after the expiry of the
said period if it is satisfied that there was sufficient cause for not filing it
within such period.
(3) Where the High Court is satisfied that a substantial question of law is
involved in any case, it shall formulate that question and the appeal shall be
heard only on the question so formulated, and the respondents shall, at the
hearing of the appeal, be allowed to argue that the case does not involve such
question:

183.Substituted for the Words "State Bench or Area Benches " by The Uttar Pradesh Goods and
Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No.
420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 138

Provided that nothing in this sub-section shall be deemed to take away or

abridge the power of the court to hear, for reasons to be recorded, the appeal
on any other substantial question of law not formulated by it, if it is satisfied
that the case involves such question.
(4) The High Court shall decide the question of law so formulated and deliver
such judgment thereon containing the grounds on which such decision is
founded and may award such cost as it deems fit.
(5) The High Court may determine any issue which-
(a) has not been determined by the [State Benches]184; or
(b) has been wrongly determined by the [State Benches]185, by reason of
a decision on such question of law as herein referred to in subsection
(3).
(6) Where an appeal has been filed before the High Court, it shall be heard by
a Bench of not less than two Judges of the High Court, and shall be decided
in accordance with the opinion of such Judges or of the majority, if any, of
such Judges.
(7) Where there is no such majority, the Judges shall state the point of law
upon which they differ and the case shall, then, be heard upon that point
only, by one or more of the other Judges of the High Court and such point
shall be decided according to the opinion of the majority of the Judges who
have heard the case including those who first heard it.
(8) Where the High Court delivers a judgment in an appeal filed before it
under this section, effect shall be given to such judgment by either side on the
basis of a certified copy of the judgment.
(9) Save as otherwise provided in this Act, the provisions of the Code of Civil
Procedure, 1908, (Act No. 5 of 1908) relating to appeals to the High Court
shall, as far as may be, apply in the case of appeals under this section.
118. Appeal to Supreme Court -
(1) An appeal shall lie to the Supreme Court-
(a) from any order passed by the [Principal Bench]186 of the Appellate
Tribunal; or
(b) from any judgment or order passed by the High Court in an appeal
made under section 117 in any case which, on its own motion or on an
application made by or on behalf of the party aggrieved, immediately

184.Substituted for the Words "State Bench or Area Benches " by The Uttar Pradesh Goods and
Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No.
420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023
185.Substituted for the Words "State Bench or Area Benches " by The Uttar Pradesh Goods and
Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No.
420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023
186. Substituted for the words "National Bench or Regional Benches" by The Uttar Pradesh
Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide
Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 139

after passing of the judgment or order, the High Court certifies to be a

fit one for appeal to the Supreme Court.
(2) The provisions of the Code of Civil Procedure, 1908 (Act No. 5 of 1908),
relating to appeals to the Supreme Court shall, so far as may be, apply in the
case of appeals under this section as they apply in the case of appeals from
decrees of a High Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal,
effect shall be given to the order of the Supreme Court in the manner provided
in section 117 in the case of a judgment of the High Court.
119. Sums due to be paid notwithstanding appeal etc.-
Notwithstanding that an appeal has been preferred to the High Court or the
Supreme Court, sums due to the Government as a result of an order passed
by the [Principal Bench]187 of the Appellate Tribunal under sub-section (1) of
section 113 or an order passed by the [State Benches]188, of the Appellate
Tribunal under sub-section (1) of section 113 or an order passed by the High
Court under section 117, as the case may be, shall be payable in accordance
with the order so passed.
120. Appeal not to be filed in certain cases -
(1) The Commissioner may, on the recommendations of the Council, from time
to time, issue orders or instructions or directions fixing such monetary limits,
as he may deem fit, for the purposes of regulating the filing of appeal or
application by the officer of the State tax under the provisions of this Chapter.
(2) Where, in pursuance of the orders or instructions or directions issued
under subsection (1), the officer of the State tax has not filed an appeal or
application against any decision or order passed under the provisions of this
Act, it shall not preclude such officer of the State tax from filing appeal or
application in any other case involving the same or similar issues or questions
of law.
(3) Notwithstanding the fact that no appeal or application has been filed by
the officer of the State tax pursuant to the orders or instructions or directions
issued under sub-section (1), no person, being a party in appeal or application
shall contend that the officer of the State tax has acquiesced in the decision
on the disputed issue by not filing an appeal or application.
(4) The Appellate Tribunal or court hearing such appeal or application shall
have regard to the circumstances under which appeal or application was not
filed by the officer of the State tax in pursuance of the orders or instructions
or directions issued under sub-section (1).

187. Substituted for the words "National Bench or Regional Benches" by The Uttar Pradesh
Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide
Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023

188.Substituted for the Words "State Bench or Area Benches " by The Uttar Pradesh Goods and
Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No.
420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 140

121. Non appealable decisions and orders -

Notwithstanding anything to the contrary in any provisions of this Act, no
appeal shall lie against any decision taken or order passed by an officer of
State tax if such decision taken or order passed relates to any one or more of
the following matters, namely:-
(a) an order of the Commissioner or other authority empowered to
direct transfer of proceedings from one officer to another officer; or
(b) an order pertaining to the seizure or retention of books of account,
register and other documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed under section 80.

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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 141

CHAPTER XIX
OFFENCES AND PENALTIES
122. Penalty for certain offences -
(1) Where a taxable person who -
(i) supplies any goods or services or both without issue of any invoice or
issues an incorrect or false invoice with regard to any such supply;
(ii) issues any invoice or bill without supply of goods or services or both
in violation of the provisions of this Act or the rules made there under;
(iii) collects any amount as tax but fails to pay the same to the
Government beyond a period of three months from the date on which
such payment becomes due;
(iv) collects any tax in contravention of the provisions of this Act but
fails to pay the same to the Government beyond a period of three
months from the date on which such payment becomes due;
(v) fails to deduct the tax in accordance with the provisions of sub-
section (1) of section 51, or deducts an amount which is less than the
amount required to be deducted under the said sub-section, or where
he fails to pay to the Government under sub-section (2) thereof, the
amount deducted as tax;
(vi) fails to collect tax in accordance with the provisions of sub-section
(1) of section 52, or collects an amount which is less than the amount
required to be collected under the said sub-section or where he fails to
pay to the Government the amount collected as tax under sub-section
(3) of section 52;
(vii) takes or utilizes input tax credit without actual receipt of goods or
services or both either fully or partially, in contravention of the
provisions of this Act or the rules made there under;
(viii) fraudulently obtains refund of tax under this Act;
(ix) takes or distributes input tax credit in contravention of section 20,
or the rules made there under;
(x) falsifies or substitutes financial records or produces fake accounts
or documents or furnishes any false information or return with an
intention to evade payment of tax due under this Act;
(xi) is liable to be registered under this Act but fails to obtain
registration;
(xii) furnishes any false information with regard to registration
particulars, either at the time of applying for registration, or
subsequently;
(xiii) obstructs or prevents any officer in discharge of his duties under
this Act;
(xiv) transports any taxable goods without the cover of documents as
may be specified in this behalf;

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(xv) suppresses his turnover leading to evasion of tax under this Act;
(xvi) fails to keep, maintain or retain books of account and other
documents in accordance with the provisions of this Act or the rules
made there under;
(xvii) fails to furnish information or documents called for by an officer
in accordance with the provisions of this Act or the rules made there
under or furnishes false information or documents during any
proceedings under this Act;
(xviii) supplies, transports or stores any goods which he has reasons to
believe are liable to confiscation under this Act;
(xix) issues any invoice or document by using the registration number
of another registered person;
(xx) tampers with, or destroys any material evidence or documents;
(xxi) disposes off or tampers with any goods that have been detained,
seized, or attached under this Act, .
he shall be liable to pay a penalty of ten thousand rupees or an amount
equivalent to the tax evaded or the tax not deducted under section 51
or short deducted or deducted but not paid to the Government or tax
not collected under section 52 or short collected or collected but not
paid to the Government or input tax credit availed of or passed on or
distributed irregularly, or the refund claimed fraudulently, whichever is
higher.
[(1A) Any person who retains the benefit of a transaction covered under clause
(i), (ii), (vii) or clause (ix) of sub-section (I) and at whose instance such
transaction is conducted, shall be liable to a penalty of an amount equivalent
to the tax evaded or input tax credit availed of or passed on.]189
[(1B) Any electronic commerce operator who—
(i) allows a supply of goods or services or both through it by an unregistered
person other than a person exempted from registration by a notification
issued under this Act to make such supply;
(ii) allows an inter-State supply of goods or services or both through it by a
person who is not eligible to make such inter-State supply; or
(iii) fails to furnish the correct details in the statement to be furnished under
sub-section (4) of section 52 of any outward supply of goods effected through
it by a person exempted from obtaining registration under this Act, shall be
liable to pay a penalty of ten thousand rupees, or an amount equivalent to the
amount of tax involved had such supply been made by a registered person
other than a person paying tax under section 10, whichever is higher.]190

189. Inserted by The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020 (U.P.

Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August,

2020 w.e.f. 01 January, 2021.
190.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
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(2) Any registered person who supplies any goods or services or both on which
any tax has not been paid or short-paid or erroneously refunded, or where the
input tax credit has been wrongly availed or utilized,-
(a) for any reason, other than the reason of fraud or any wilful
misstatement or suppression of facts to evade tax, shall be liable to a
penalty of ten thousand rupees or ten per cent. of the tax due from
such person, whichever is higher;
(b) for reason of fraud or any wilful misstatement or suppression of
facts to evade tax, shall be liable to a penalty equal to ten thousand
rupees or the tax due from such person, whichever is higher.
(3) Any person who-
(a) aids or abets any of the offences specified in clauses (i) to (xxi) of
sub-section (1);
(b) acquires possession of, or in any way concerns himself in
transporting, removing, depositing, keeping, concealing, supplying, or
purchasing or in any other manner deals with any goods which he
knows or has reasons to believe are liable to confiscation under this Act
or the rules made there under;
(c) receives or is in any way concerned with the supply of, or in any
other manner deals with any supply of services which he knows or has
reasons to believe are in contravention of any provisions of this Act or
the rules made there under;
(d) fails to appear before the officer of State tax, when issued with a
summon for appearance to give evidence or produce a document in an
inquiry;
(e) fails to issue invoice in accordance with the provisions of this Act or
the rules made there under or fails to account for an invoice in his
books of account,
shall be liable to a penalty which may extend to twenty five thousand rupees.
123. Penalty for failure to furnish information return -
If a person who is required to furnish an information return under section
150 fails to do so within the period specified in the notice issued under sub-
section (3) thereof, the proper officer may direct, that such person shall be
liable to pay a penalty of one hundred rupees for each day of the period
during which the failure to furnish such return continues:
Provided that the penalty imposed under this section shall not exceed five
thousand rupees.
124. Fine for failure to furnish statistics -
If any person required to furnish any information or return under section
151,-
(a) without reasonable cause fails to furnish such information or return
as may be required under that section, or

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(b) wilfully furnishes or causes to furnish any information or return

which he knows to be false, he shall be punishable with a fine which
may extend to ten thousand rupees and in case of a continuing offence
to a further fine which may extend to one hundred rupees for each day
after the first day during which the offence continues subject to a
maximum limit of twenty five thousand rupees.
125. General penalty -
Any person, who contravenes any of the provisions of this Act or any rules
made there under for which no penalty is separately provided for in this Act,
shall be liable to a penalty which may extend to twenty five thousand rupees.
126. General disciplines related to penalty -
(1) No officer under this Act shall impose any penalty for minor breaches of
tax regulations or procedural requirements and in particular, any omission or
mistake in documentation which is easily rectifiable and made without
fraudulent intent or gross negligence.
Explanation.- For the purpose of this sub-section,-
(a) a breach shall be considered a 'minor breach' if the amount of tax
involved is less than five thousand rupees;
(b) an omission or mistake in documentation shall be considered to be
easily rectifiable if the same is an error apparent on the face of record.
(2) The penalty imposed under this Act shall depend on the facts and
circumstances of each case and shall commensurate with the degree and
severity of the breach.
(3) No penalty shall be imposed on any person without giving him an
opportunity of being heard.
(4) The officer under this Act shall while imposing penalty in an order for a
breach of any law, regulation or procedural requirement, specify the nature of
the breach and the applicable law, regulation or procedure under which the
amount of penalty for the breach has been specified.
(5) When a person voluntarily discloses to an officer under this Act the
circumstances of a breach of the tax law, regulation or procedural
requirement prior to the discovery of the breach by the officer under this Act,
the proper officer may consider this fact as a mitigating factor when
quantifying a penalty for that person.
(6) The provisions of this section shall not apply in such cases where the
penalty specified under this Act is either a fixed sum or expressed as a fixed
percentage.
127. Power to impose penalty in certain cases -
Where the proper officer is of the view that a person is liable to a penalty and
the same is not covered under any proceedings under section 62 or section 63
or section 64 or section 73 or section 74 or section 129 or section 130, he may
issue an order levying such penalty after giving a reasonable opportunity of
being heard to such person.

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128. Power to waive penalty or fee or both -

The Government may, by notification, waive in part or full, any penalty
referred to in section 122 or section 123 or section 125 or any late fee referred
to in section 47 for such class of taxpayers and under such mitigating
circumstances as may be specified therein on the recommendations of the
Council.
129. Detention, seizure and release of goods and conveyances in transit -
(1) Notwithstanding anything contained in this Act, where any person
transports any goods or stores any goods while they are in transit in
contravention of the provisions of this Act or the rules made there under, all
such goods and conveyance used as a means of transport for carrying the said
goods and documents relating to such goods and conveyance shall be liable to
detention or seizure and after detention or seizure, shall be released,-
[(a) on payment of penalty equal to two hundred percent of the tax
payable on such goods and, in case of exempted goods, on payment of
an amount equal to two percent of the value of goods or twenty-five
thousand rupees, whichever is less, where the owner of the goods
comes forward for payment of such penalty;
(b) on payment of penalty equal to fifty percent of the value of the goods
or two hundred percent of the tax payable on such goods, whichever is
higher, and in case of exempted goods, on payment of an amount equal
to five percent of the value of goods or twenty-five thousand rupees,
whichever is less, where the owner of the goods does not come forward
for payment of such penalty;]191
(c) upon furnishing a security equivalent to the amount payable under
clause (a) or clause (b)in such form and manner as may be prescribed:
Provided that no such goods or conveyance shall be detained or seized
without serving an order of detention or seizure on the person transporting
the goods.
[***]192

191.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to substitution clauses reads as under :-
(a) on payment of the applicable tax and penalty equal to one hundred per cent. of the
tax payable on such goods and, in case of exempted goods, on payment of an amount
equal to two per cent of the value of goods or twenty five thousand rupees, whichever is
less, where the owner of the goods comes forward for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value
of the goods reduced by the tax amount paid thereon and, in case of exempted goods,
on payment of an amount equal to five per cent of the value of goods or twenty five
thousand rupees, whichever is less, where the owner of the goods does not come
forward for payment of such tax and penalty;
192.Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act
No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to omission sub-section reads as under :-
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 146

[(3) The proper officer detaining or seizing goods or conveyance shall issue a
notice within seven days of such detention or seizure, specifying the penalty
payable, and thereafter, pass an order within a period of seven days from the
date of service of such notice, for payment of penalty under clause (a) or
clause (b) of sub-section (1).]193
(4) [No penalty]194 shall be determined under sub-section (3) without giving the
person concerned an opportunity of being heard.
(5) On payment of amount referred in sub-section (1), all proceedings in
respect of the notice specified in subsection (3) shall be deemed to be
concluded.
[(6) Where the person transporting any goods or the owner of such goods fails
to pay the amount of penalty under sub-section (1) within fifteen days from
the date of receipt of the copy of the order passed under sub-section (3), the
goods or conveyance so detained or seized shall be liable to be sold or
disposed of otherwise, in such manner and within such time as may be
prescribed, to recover the penalty payable under sub-section (3):
Provided that the conveyance shall be released on payment by the transporter
of penalty under sub-section (3) or one lakh rupees, whichever is less:
Provided further that where the detained or seized goods are perishable or
hazardous in nature or are likely to depreciate in value with passage of time,
the said period of fifteen days may be reduced by the proper officer.]195

(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for
detention and seizure of goods and conveyances.
193.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to substitution sub-section reads as under :-
(3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying
the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under
clause (a) or clause (b)or clause (c).
194.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021 for the words "No tax, interest or penalty".

195.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to substitution sub-section reads as under :-
(6) Where the person transporting any goods or the owner of the goods fails to pay the amount
of tax and penalty as provided in sub-section (1) within fourteen days of such detention or
seizure, further proceedings shall be initiated in accordance with the provisions of section 130:
Provided that where the detained or seized goods are perishable or hazardous in nature or are
likely to depreciate in value with passage of time, the said period of seven days may be reduced
by the proper officer.
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130. Confiscation of goods or conveyances and levy of penalty -

(1) [Where]196, if any person -
(i) supplies or receives any goods in contravention of any of the
provisions of this Act or the rules made there under with intent to
evade payment of tax; or
(ii) does not account for any goods on which he is liable to pay tax
under this Act; or
(iii) supplies any goods liable to tax under this Act without having
applied for registration; or
(iv) contravenes any of the provisions of this Act or the rules made
there under with intent to evade payment of tax; or
(v) uses any conveyance as a means of transport for carriage of goods in
contravention of the provisions of this Act or the rules made there
under unless the owner of the conveyance proves that it was so used
without the knowledge or connivance of the owner himself, his agent, if
any, and the person in charge of the conveyance, then, all such goods
or conveyances shall be liable to confiscation and the person shall be
liable to penalty under section 122.
(2) Whenever confiscation of any goods or conveyance is authorised by this
Act, the officer adjudging it shall give to the owner of the goods an option to
pay in lieu of confiscation, such fine as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods
confiscated, less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not
be less than the [penalty equal to hundred percent of the tax payable on such
goods]197:
Provided also that where any such conveyance is used for the carriage of the
goods or passengers for hire, the owner of the conveyance shall be given an
option to pay in lieu of the confiscation of the conveyance a fine equal to the
tax payable on the goods being transported thereon.
(3) Where any fine in lieu of confiscation of goods or conveyance is imposed
under sub-section (2), the owner of such goods or conveyance or the person
referred to in sub-section (1), shall, in addition, be liable to any tax, penalty
and charges payable in respect of such goods or conveyance.
(4) No order for confiscation of goods or conveyance or for imposition of
penalty shall be issued without giving the person an opportunity of being
heard.

196
. Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021 for the words "Notwithstanding anything contained in this Act".
197. Substituted the words, brackets and figures "amount of penalty leviable under sub-section

(1) of section 129" by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 148

(5) Where any goods or conveyance are confiscated under this Act, the title of
such goods or conveyance shall thereupon vest in the Government.
(6) The proper officer adjudging confiscation shall take and hold possession of
the things confiscated and every officer of Police, on the requisition of such
proper officer, shall assist him in taking and holding such possession.
(7) The proper officer may, after satisfying himself that the confiscated goods
or conveyance are not required in any other proceedings under this Act and
after giving reasonable time not exceeding three months to pay fine in lieu of
confiscation, dispose of such goods or conveyance and deposit the sale
proceeds thereof with the Government.
131. Confiscation or penalty not to interfere with other punishments -
Without prejudice to the provisions contained in the Code of Criminal
Procedure, 1973, (Act No.2 of 1974) no confiscation made or penalty imposed
under the provisions of this Act or the rules made there under shall prevent
the infliction of any other punishment to which the person affected thereby is
liable under the provisions of this Act or under any other law for the time
being in force.

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132. Punishment for certain offences -

(1) [Whoever commits, or cause to commit and retains the benefits arising out
of, any of the following offences]198, namely:-
(a) supplies any goods or services or both without issue of any invoice,
in violation of the provisions of this Act or the rules made there under,
with the intention to evade tax;
(b) issues any invoice or bill without supply of goods or services or both
in violation of the provisions of this Act, or the rules made there under
leading to wrongful availment or utilisation of input tax credit or refund
of tax;
[(c) avails input tax credit using the invoice or bill referred to in clause
(b) or fraudulently avails input tax credit without any invoice or bill;]199
(d) collects any amount as tax but fails to pay the same to the
Government beyond a period of three months from the date on which
such payment becomes due;
(e) evades tax, [***]200 or fraudulently obtains refund and where such
offence is not covered under clauses (a) to (d);
(f) falsifies or substitutes financial records or produces fake accounts or
documents or furnishes any false information with an intention to
evade payment of tax due under this Act;
[Omitted]201
(h) acquires possession of, or in any way concerns himself in
transporting, removing, depositing, keeping, concealing, supplying,
purchasing or in any other manner deals with, any goods which he
knows or has reasons to believe are liable to confiscation under this Act
or the rules made there under;
(i) receives or is in any way concerned with the supply of, or in any
other manner deals with any supply of services which he knows or has

198. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020
(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31
August, 2020 w.e.f. 01 January, 2021 for "Whoever commits any of the following offences".
199. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020

(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31

August, 2020 w.e.f. 01 January, 2021. Prior to substitution clause reads as under :-
(c) avails input tax credit using such invoice or bill referred to in clause (b);
200. The words "fraudulently avails input tax credit" Omitted by The Uttar Pradesh Goods and

Services Tax (Third Amendment) Act, 2020 (U.P. Act no. 24 of 2020) vide Notification No.
1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August, 2020 w.e.f. 01 January, 2021.
201.Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. Prior to Omission the Clause reads as under :

"(g) obstructs or prevents any officer in the discharge of his duties under this Act;"

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reasons to believe are in contravention of any provisions of this Act or

the rules made there under;
[Omitted]202
[Omitted]203
(l) attempts to commit, or abets the commission of any of the offences
mentioned in clauses (a) to (k) of this section, shall be punishable-
(i) in cases where the amount of tax evaded or the amount of
input tax credit wrongly availed or utilised or the amount of
refund wrongly taken exceeds five hundred lakh rupees, with
imprisonment for a term which may extend to five years and
with fine;
(ii) in cases where the amount of tax evaded or the amount of
input tax credit wrongly availed or utilised or the amount of
refund wrongly taken exceeds two hundred lakh rupees but does
not exceed five hundred lakh rupees, with imprisonment for a
term which may extend to three years and with fine;
(iii) in the case of [any offence specified in clause (b)]204 where
the amount of tax evaded or the amount of input tax credit
wrongly availed or utilised or the amount of refund wrongly
taken exceeds one hundred lakh rupees but does not exceed two
hundred lakh rupees, with imprisonment for a term which may
extend to one year and with fine;
(iv) in cases where he commits or abets the commission of an
offence specified in clause (f) [omitted]205 he shall be punishable
with imprisonment for a term which may extend to six months
or with fine or with both.
(2) Where any person convicted of an offence under this section is again
convicted of an offence under this section, then, he shall be punishable for the

202.Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. Prior to Omission the Clause reads as under :

"(j) tampers with or destroys any material evidence or documents;"

203.Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. Prior to Omission the Clause reads as under :

"(k) fails to supply any information which he is required to supply under this Act or the
rules made there under or (unless with a reasonable belief, the burden of proving
which shall be upon him, that the information supplied by him is true) supplies false
information; or"
204. Substituted for the words "any other offence" by The Uttar Pradesh Goods and Services

Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No.
420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023
205.
The Words " or clause (g) or clause (j)" omitted by by The Uttar Pradesh Goods and Services
Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification No.
420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023
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second and for every subsequent offence with imprisonment for a term which
may extend to five years and with fine.
(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section (1)
and subsection (2) shall, in the absence of special and adequate reasons to
the contrary to be recorded in the judgment of the Court, be for a term not
less than six months.
(4) Notwithstanding anything contained in the Code of Criminal Procedure,
1973, all offences under this Act, except the offences referred to in sub-
section (5) shall be non-cognizable and bailable.
(5) The offences specified in clause (a) or clause (b) or clause (c) or clause (d) of
subsection (1) and punishable under clause (i) of that sub-section shall be
cognizable and non-bailable.
(6) A person shall not be prosecuted for any offence under this section except
with the previous sanction of the Commissioner.
Explanation.- For the purposes of this section, the term "tax" shall include the
amount of tax evaded or the amount of input tax credit wrongly availed or
utilised or refund wrongly taken under the provisions of this Act, the Central
Goods and Services Tax Act, the Integrated Goods and Services Tax Act, and
cess levied under the Goods and Services Tax (Compensation to States) Act.
133. Liability of officers and certain other persons -
(1) Where any person engaged in connection with the collection of statistics
under section 151 or compilation or computerisation thereof or if any officer of
State tax having access to information specified under sub-section (1) of
section
150, or if any person engaged in connection with the provision of service on
the common portal or the agent of common portal, willfully discloses any
information or the contents of any return furnished under this Act or rules
made there under otherwise than in execution of his duties under the said
sections or for the purposes of prosecution for an offence under this Act or
under any other Act for the time being in force, he shall be punishable with
imprisonment for a term which may extend to six months or with fine which
may extend to twenty five thousand rupees, or with both.
(2) Any person -
(a) who is a Government servant shall not be prosecuted for any offence
under this section except with the previous sanction of the
Government;
(b) who is not a Government servant shall not be prosecuted for any
offence under this section except with the previous sanction of the
Commissioner.
134. Cognizance of offences -
No court shall take cognizance of any offence punishable under this Act or the
rules made there under except with the previous sanction of the
Commissioner, and no court inferior to that of a Magistrate of the First Class,
shall try any such offence.

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135. Presumption of culpable mental state -

In any prosecution for an offence under this Act which requires a culpable
mental state on the part of the accused, the court shall presume the existence
of such mental state but it shall be a defence for the accused to prove the fact
that he had no such mental state with respect to the act charged as an
offence in that prosecution.
Explanation.- For the purposes of this section,-
(i) the expression "culpable mental state" includes intention, motive,
knowledge of a fact, and belief in, or reason to believe, a fact;
(ii) a fact is said to be proved only when the court believes it to exist
beyond reasonable doubt and not merely when its existence is
established by a preponderance of probability.
136. Relevancy of statements under certain circumstances -
A statement made and signed by a person on appearance in response to any
summons issued under section 70 during the course of any inquiry or
proceedings under this Act shall be relevant, for the purpose of proving, in
any prosecution for an offence under this Act, the truth of the facts which it
contains,-
(a) when the person who made the statement is dead or cannot be
found, or is incapable of giving evidence, or is kept out of the way by
the adverse party, or whose presence cannot be obtained without an
amount of delay or expense which, under the circumstances of the
case, the court considers unreasonable; or
(b) when the person who made the statement is examined as a witness
in the case before the court and the court is of the opinion that, having
regard to the circumstances of the case, the statement should be
admitted in evidence in the interest of justice.
137. Offences by Companies -
(1) Where an offence committed by a person under this Act is a company,
every person who, at the time the offence was committed was in charge of,
and was responsible to, the company for the conduct of business of the
company, as well as the company, shall be deemed to be guilty of the offence
and shall be liable to be proceeded against and punished accordingly.
(2) Notwithstanding anything contained in subsection (1), where an offence
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is
attributable to any negligence on the part of, any director, manager, secretary
or other officer of the company, such director, manager, secretary or other
officer shall also be deemed to be guilty of that offence and shall be liable to
be proceeded against and punished accordingly.
(3) Where an offence under this Act has been committed by a taxable person
being a partnership firm or a Limited Liability Partnership or a Hindu
Undivided Family or a trust, the partner or karta or managing trustee shall be
deemed to be guilty of that offence and shall be liable to be proceeded against

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and punished accordingly and the provisions of sub-section (2) shall mutatis
mutandis apply to such persons.
(4) Nothing contained in this section shall render any such person liable to
any punishment provided in this Act, if he proves that the offence was
committed without his knowledge or that he had exercised all due diligence to
prevent the commission of such offence.
Explanation.- For the purposes of this section,-
(i) "company" means a body corporate and includes a firm or other
association of individuals; and
(ii) "director", in relation to a firm, means a partner in the firm.
138. Compounding of offences -
(1) Any offence under this Act may, either before or after the institution of
prosecution, be compounded by the Commissioner on payment, by the person
accused of the offence, to the Central Government or the State Government,
as the case may be, of such compounding amount in such manner as may be
prescribed:
Provided that nothing contained in this section shall apply to -
[(a) a person who has been allowed to compound once in respect of any
of the offences specified in clauses (a) to (f), (h), (i) and (1) of sub-
section (1) of section 132;]206
[Omitted]207
["(c) a person who has been accused of committing an offence under
clause (b) of sub-section (1) of section 132]208
(d) a person who has been convicted for an offence under this Act by a
court;

206.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023. Prior to Substitution the Clause reads as under :
"(a) a person who has been allowed to compound once in respect of any of the offences
specified in clauses(a) to (f) of sub-section (1) of section 132 and the offences specified
in clause (l) which are relatable to offences specified in clauses (a) to (f) of the said sub-
section;"
207.The Clause omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023
(U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023
Dated Lucknow, August 21, 2023. Prior to omission the Clause reads as under :
"b) a person who has been allowed to compound once in respect of any offence, other
than those in clause (a), under this Act or under the provisions of any State Goods and
Services Tax Act or the Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017)
or the Union Territory Goods and Services Tax Act or the Integrated Goods and Services
Tax Act, 2017 (Act No. 13 of 2017) in respect of supplies of value exceeding one crore
rupees;"
208.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023.
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[Omitted]209
(f) any other class of persons or offences as may be prescribed:
Provided further that any compounding allowed under the provisions of this
section shall not affect the proceedings, if any, instituted under any other law:
Provided also that compounding shall be allowed only after making payment
of tax, interest and penalty involved in such offences.
(2) The amount for compounding of offences under this section shall be such
as may be prescribed, subject to the minimum amount not being less than
[twenty-five per cent of the tax involved and the maximum amount not being
more than one hundred per cent of the tax involved]210
(3) On payment of such compounding amount as may be determined by the
Commissioner, no further proceedings shall be initiated under this Act
against the accused person in respect of the same offence and any criminal
proceedings, if already initiated in respect of the said offence, shall stand
abated.

209. The Clause omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023
(U.P. Act No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023
Dated Lucknow, August 21, 2023. Prior to omission the clause reads as under :
"(e) a person who has been accused of committing an offence specified in clause (g) or
clause (j) or clause(k) of sub-section (1) of section 132; and"
210. Substituted for the words "ten thousand rupees or fifty per cent. of the tax involved,
whichever is higher, and the maximum amount not being less than thirty thousand rupees or
one hundred and fifty per cent. of the tax, whichever is higher" by The Uttar Pradesh Goods
and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of 2023) Published Vide Notification
No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow, August 21, 2023.
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CHAPTER XX
TRANSITIONAL PROVISIONS
139. Migration of existing taxpayers -
(1) On and from the appointed day, every person registered under any of the
existing laws and having a valid Permanent Account Number shall be issued a
certificate of registration on provisional basis, subject to such conditions and
in such form and manner as may be prescribed, which unless replaced by a
final certificate of registration under sub-section (2), shall be liable to be
cancelled if the conditions so prescribed are not complied with.
(2) The final certificate of registration shall be granted in such form and
manner and subject to such conditions as may be prescribed.
(3) The certificate of registration issued to a person under sub-section (1) shall
be deemed to have not been issued if the said registration is cancelled in
pursuance of an application filed by such person that he was not liable to
registration under section 22 or section 24.
140. Transitional arrangements for input tax credit -
(1) A registered person, other than a person opting to pay tax under section
10, shall be entitled to take, in his electronic credit ledger, credit of the
amount of Value Added Tax, and Entry Tax, if any, carried forward in the
return relating to the period ending with the day immediately preceding the
appointed day, furnished by him under the existing law [within such time
and]211 in such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit in the
following circumstances, namely:-
(i) where the said amount of credit is not admissible as input tax credit
under this Act; or
(ii) where he has not furnished all the returns required under the
existing law for the period of six months immediately preceding the
appointed date; or Provided further that so much of the said credit as is
attributable to any claim related to section 3, sub-section (3) of section
5, section 6, section 6A or sub-section (8) of section 8 of the Central
Sales Tax Act, 1956 (Act No. 74 of 1956) which is not substantiated in
the manner, and within the period, prescribed in rule 12 of the Central
Sales Tax (Registration and Turnover) Rules, 1957 shall not be eligible
to be credited to the electronic credit ledger:
Provided also that an amount equivalent to the credit specified in the second
proviso shall be refunded under the existing law when the said claims are
substantiated in the manner prescribed in rule 12 of the Central Sales Tax
(Registration and Turnover) Rules, 1957.
(2) A registered person, other than a person opting to pay tax under section
10, shall be entitled to take, in his electronic credit ledger, credit of the

211.Inserted by The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020 (U.P.
Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August,
2020 w.e.f. 01 July, 2017.
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unveiled input tax credit in respect of capital goods, not carried forward in a
return, furnished under the existing law by him, for the period ending with
the day immediately preceding the appointed day [within such time and]212 in
such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit unless
the said credit was admissible as input tax credit under the existing law and
is also admissible as input tax credit under this Act.
Explanation.- For the purposes of this section, the expression "unavailed
input tax credit" means the amount that remains after subtracting the
amount of input tax credit already availed in respect of capital goods by the
taxable person under the existing law from the aggregate amount of input tax
credit to which the said person was entitled in respect of the said capital
goods under the existing law.
(3) A registered person, who was not liable to be registered under the existing
law or who was engaged in the sale of exempted goods or tax free goods, by
whatever name called or goods which have suffered tax at the first point of
their sale in the State and the subsequent sales of which are not subject to
tax in the State under the existing law but which are liable to tax under this
Act or where the person was entitled to the credit of input tax at the time of
sale of goods, if any, shall be entitled to take, in his electronic credit ledger,
credit of the value added tax in respect of inputs held in stock and inputs
contained in semi finished or finished [goods held in stock on the appointed
day, within such time and in such manner as may be prescribed subject to]213
the following conditions namely:-
(i) such inputs or goods are used or intended to be used for making
taxable supplies under this Act;
(ii) the said registered person is eligible for input tax credit on such
inputs under this Act;
(iii) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of tax under the existing law
in respect of such inputs; and
(iv) such invoices or other prescribed documents were issued not earlier
than twelve months immediately preceding the appointed day:
Provided that where a registered person, other than a manufacturer or a
supplier of services, is not in possession of an invoice or any other documents
evidencing payment of tax in respect of inputs, then, such registered person
shall, subject to such conditions, limitations and safeguards as may be
prescribed, including that the said taxable person shall pass on the benefit of
such credit by way of reduced prices to the recipient, be allowed to take credit
at such rate and in such manner as may be prescribed.

212. Inserted by The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020 (U.P.

Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August,

2020 w.e.f. 01 July, 2017.
213. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020
(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31
August, 2020 w.e.f. 01 July, 2017 for "goods held in stock on the appointed day subject to"
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(4) A registered person, who was engaged in the sale of taxable goods as well
as exempted goods or tax free goods, by whatever name called, under the
existing law but which are liable to tax under this Act, shall be entitled to
take, in his electronic credit ledger,-
(a) the amount of credit of the value added tax if any, carried forward in
a return furnished under the existing law by him in accordance with
the provisions of subsection (1); and
(b) the amount of credit of the value added tax if any, in respect of
inputs held in stock and inputs contained in semi-finished or finished
goods held in stock on the appointed day, relating to such exempted
goods or tax free goods, by whatever name called, in accordance with
the provisions of sub-section (3).
(5) A registered person shall be entitled to take, in his electronic credit ledger,
credit of value added tax and entry tax, if any, in respect of inputs received on
or after the appointed day but the tax in respect of which has been paid by
the supplier under the [existing law, within such time and in such manner as
may be prescribed]214, subject to the condition that the invoice or any other
tax paying document of the same was recorded in the books of account of
such person within a period of thirty days from the appointed day:
Provided that the period of thirty days may, on sufficient cause being shown,
be extended by the Commissioner for a further period not exceeding thirty
days:
Provided further that the said registered person shall furnish a statement, in
such manner as may be prescribed, in respect of credit that has been taken
under this subsection.
(6) A registered person, who was either paying tax at a fixed rate or paying a
fixed amount in lieu of the tax payable under the existing law shall be entitled
to take, in his electronic credit ledger, credit of value added tax in respect of
inputs held in stock and inputs contained in semi-finished or finished [goods
held in stock on the appointed day, within such time and in such manner as
may be prescribed, subject to]215 the following conditions, namely:-
(i) such inputs or goods are used or intended to be used for making
taxable supplies under this Act;
(ii) the said registered person is not paying tax under section 10;
(iii) the said registered person is eligible for input tax credit on such
inputs under this Act;
(iv) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of tax under the existing law
in respect of inputs; and

214. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020

(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31

August, 2020 w.e.f. 01 July, 2017 for "existing law"
215. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020
(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31
August, 2020 w.e.f. 01 July, 2017 for "goods held in stock on the appointed day subject to"
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(v) such invoices or other prescribed documents were issued not earlier
than twelve months immediately preceding the appointed day.
(7) The amount of credit under sub-sections (3), (4) and (6) shall be calculated
in such manner as may be prescribed.
141. Transitional provisions relating to job work -
(1)Where any inputs received at a place of business had been despatched as
such or despatched after being partially processed to a job worker for further
processing, testing, repair, reconditioning or any other purpose in accordance
with the provisions of existing law prior to the appointed day and such inputs
are returned to the said place on or after the appointed day, no tax shall be
payable if such inputs, after completion of the job work or otherwise, are
returned to the said place within six months from the appointed day:
Provided that the period of six months may, on sufficient cause being shown,
be extended by the Commissioner for a further period not exceeding two
months:
Provided further that if such inputs are not returned within the period
specified in this sub-section, the input tax credit shall be liable to be
recovered in accordance with the provisions of clause (a) of subsection (8) of
section 142.
(2) Where any semi-finished goods had been despatched from the place of
business to any other premises for carrying out certain manufacturing
processes in accordance with the provisions of existing law prior to the
appointed day and such goods (hereafter in this subsection referred to as "the
said goods") are returned to the said place on or after the appointed day, no
tax shall be payable if the said goods, after undergoing manufacturing
processes or otherwise, are returned to the said place within six months from
the appointed day:
Provided that the period of six months may, on sufficient cause being shown,
be extended by the Commissioner for a further period not exceeding two
months:
Provided further that if the said goods are not returned within a period
specified in this sub-section, the input tax credit shall be liable to be
recovered in accordance with the provisions of clause (a) of subsection (8) of
section 142:
Provided also that the person despatching the goods may, in accordance with
the provisions of the existing law, transfer the said goods to the premises of
any registered person for the purpose of supplying there from on payment of
tax in India or without payment of tax for exports within the period specified
in this sub-section.
(3) Where any goods had been despatched from the place of business without
payment of tax for carrying out tests or any other process, to any other
premises, whether registered or not, in accordance with the provisions of
existing law prior to the appointed day and such goods, are returned to the
said place of business on or after the appointed day, no tax shall be payable if
the said goods, after undergoing tests or any other process, are returned to
such place within six months from the appointed day:
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Provided that the period of six months may, on sufficient cause being shown,
be extended by the Commissioner for a further period not exceeding two
months:
Provided further that if the said goods are not returned within the period
specified in this subsection, the input tax credit shall be liable to be recovered
in accordance with the provisions of clause (a) of sub-section (8) of section
142:
Provided also that the person despatching the goods may, in accordance with
the provisions of the existing law, transfer the said goods from the said other
premises on payment of tax in India or without payment of tax for exports
within the period specified in this subsection.
(4) The tax under sub-sections (1), (2) and (3) shall not be payable, only if the
person despatching the goods and the job worker declare the details of the
inputs or goods held in stock by the job worker on behalf of the said person
on the appointed day in such form and manner and within such time as may
be prescribed.
142. Miscellaneous transitional provisions -
(1) Where any goods on which tax, if any, had been paid under the existing
law at the time of sale thereof, not being earlier than six months prior to the
appointed day, are returned to any place of business on or after the appointed
day, the registered person shall be eligible for refund of the tax paid under the
existing law where such goods are returned by a person, other than a
registered person, to the said place of business within a period of six months
from the appointed day and such goods are identifiable to the satisfaction of
the proper officer:
Provided that if the said goods are returned by a registered person, the return
of such goods shall be deemed to be a supply.
(2) (a) where, in pursuance of a contract entered into prior to the appointed
day, the price of any goods is revised upwards on or after the appointed day,
the registered person who had sold such goods shall issue to the recipient a
supplementary invoice or debit note, containing such particulars as may be
prescribed, within thirty days of such price revision and for the purposes of
this Act, such supplementary invoice or debit note shall be deemed to have
been issued in respect of an outward supply made under this Act;
(b) where, in pursuance of a contract entered into prior to the appointed day,
the price of any goods is revised downwards on or after the appointed day, the
registered person who had sold such goods may issue to the recipient a credit
note, containing such particulars as may be prescribed, within thirty days of
such price revision and for the purposes of this Act such credit note shall be
deemed to have been issued in respect of an outward supply made under this
Act:
Provided that the registered person shall be allowed to reduce his tax liability
on account of issue of the credit note only if the recipient of the credit note
has reduced his input tax credit corresponding to such reduction of tax
liability.

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(3) Every claim for refund filed by any person before, on or after the appointed
day for refund of any amount of input tax credit, tax, interest or any other
amount paid under the existing law, shall be disposed of in accordance with
the provisions of existing law and any amount eventually accruing to him
shall be refunded to him in cash in accordance with the provisions of the said
law:
Provided that where any claim for refund of the amount of input tax credit is
fully or partially rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of input tax
credit where the balance of the said amount as on the appointed day has been
carried forward under this Act.
(4) Every claim for refund filed after the appointed day for refund of any tax
paid under the existing law in respect of the goods exported before or after the
appointed day, shall be disposed of in accordance with the provisions of the
existing law:
Provided that where any claim for refund of input tax credit is fully or partially
rejected, the amount so rejected shall lapse:
Provided further that no refund shall be allowed of any amount of input tax
credit where the balance of the said amount as on the appointed day has been
carried forward under this Act.
(5) Notwithstanding anything to the contrary contained in this Act, any
amount of input tax credit reversed prior to the appointed day shall not be
admissible as input tax credit under this Act.
(6) (a) every proceeding of appeal, revision, review or reference relating to a
claim for input tax credit initiated whether before, on or after the appointed
day under the existing law shall be disposed of in accordance with the
provisions of the existing law, and any amount of credit found to be
admissible to the claimant shall be refunded to him in cash in accordance
with the provisions of the existing law, and the amount rejected, if any, shall
not be admissible as input tax credit under this Act:
Provided that no refund shall be allowed of any amount of input tax credit
where the balance of the said amount as on the appointed day has been
carried forward under this Act;
(b) every proceeding of appeal, revision, review or reference relating to recovery
of input tax credit initiated whether before, on or after the appointed day
under the existing law shall be disposed of in accordance with the provisions
of the existing law, and if any amount of credit becomes recoverable as a
result of such appeal, revision, review or reference, the same shall, unless
recovered under the existing law, be recovered as an arrear of tax under this
Act and the amount so recovered shall not be admissible as input tax credit
under this Act.
(7) (a) every proceeding of appeal, revision, review or reference relating to any
output tax liability initiated whether before, on or after the appointed day
under the existing law, shall be disposed of in accordance with the provisions
of the existing law, and if any amount becomes recoverable as a result of such
appeal, revision, review or reference, the same shall, unless recovered under
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the existing law, be recovered as an arrear of tax under this Act and the
amount so recovered shall not be admissible as input tax credit under this
Act.
(b) every proceeding of appeal, revision, review or reference relating to any
output tax liability initiated whether before, on or after the appointed day
under the existing law, shall be disposed of in accordance with the provisions
of the existing law, and any amount found to be admissible to the claimant
shall be refunded to him in cash in accordance with the provisions of the
existing law and the amount rejected, if any, shall not be admissible as input
tax credit under this Act.
(8) (a) where in pursuance of an assessment or adjudication proceedings
instituted, whether before, on or after the appointed day under the existing
law, any amount of tax, interest, fine or penalty becomes recoverable from the
person, the same shall, unless recovered under the existing law, be recovered
as an arrear of tax under this Act and the amount so recovered shall not be
admissible as input tax credit under this Act;
(b) where in pursuance of an assessment or adjudication proceedings
instituted, whether before, on or after the appointed day under the existing
law, any amount of tax, interest, fine or penalty becomes refundable to the
taxable person, the same shall be refunded to him in cash under the said law,
and the amount rejected, if any, shall not be admissible as input tax credit
under this Act.
(9) (a) where any return, furnished under the existing law, is revised after the
appointed day and if, pursuant to such revision, any amount is found to be
recoverable or any amount of input tax credit is found to be inadmissible, the
same shall, unless recovered under the existing law, be recovered as an arrear
of tax under this Act and the amount so recovered shall not be admissible as
input tax credit under this Act;
(b) where any return, furnished under the existing law, is revised after the
appointed day but within the time limit specified for such revision under the
existing law and if, pursuant to such revision, any amount is found to be
refundable or input tax credit is found to be admissible to any taxable person,
the same shall be refunded to him in cash under the existing law, and the
amount rejected, if any, shall not be admissible as input tax credit under this
Act.
(10) Save as otherwise provided in this Chapter, the goods or services or both
supplied on or after the appointed day in pursuance of a contract entered into
prior to the appointed day shall be liable to tax under the provisions of this
Act.
(11) (a) notwithstanding anything contained in section 12, no tax shall be
payable on goods under this Act to the extent the tax was leviable on the said
goods under the Uttar Pradesh Value Added Tax Act, 2008 (U.P. Act No. 5 of
2008);
(b) notwithstanding anything contained in section 13, no tax shall be payable
on services under this Act to the extent the tax was leviable on the said
services under Chapter V of the Finance Act, 1994 (Act No. 32 of 1994)

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(c) where tax was paid on any supply, both under the Uttar Pradesh Value
Added Tax Act, 2008 and under Chapter V of the Finance Act, 1994 (Act No.
32 of 1994), tax shall be leviable under this Act and the taxable person shall
be entitled to take credit of value added tax or service tax paid under the
existing law to the extent of supplies made after the appointed day and such
credit shall be calculated in such manner as may be prescribed.
(12) Where any goods sent on approval basis, not earlier than six months
before the appointed day, are rejected or not approved by the buyer and
returned to the seller on or after the appointed day, no tax shall be payable
thereon if such goods are returned within six months from the appointed day:
Provided that the said period of six months may, on sufficient cause being
shown, be extended by the Commissioner for a further period not exceeding
two months:
Provided further that the tax shall be payable by the person returning the
goods if such goods are liable to tax under this Act, and are returned after the
period specified in this subsection:
Provided also that tax shall be payable by the person who has sent the goods
on approval basis if such goods are liable to tax under this Act, and are not
returned within the period specified in this subsection.
(13) Where a supplier has made any sale of goods in respect of which tax was
required to be deducted at source under the Uttar Pradesh Value Added Tax,
2008 (U.P. Act No. 5 of 2008) and has also issued an invoice for the same
before the appointed day, no deduction of tax at source under section 51 shall
be made by the deduct or under the said section where payment to the said
supplier is made on or after the appointed day.
(14) Where any goods or capital goods belonging to the principal are lying at
the premises of the agent on the appointed day, the agent shall be entitled to
take credit of the tax paid on such goods or capital goods subject to fulfilment
of the following conditions:-
(i) the agent is a registered taxable person under this Act;
(ii) both the principal and the agent declare the details of stock of goods
or capital goods lying with such agent on the day immediately
preceding the appointed day in such form and manner and within such
time as may be prescribed in this behalf;
(iii) the invoices for such goods or capital goods had been issued not
earlier than twelve months immediately preceding the appointed day;
and
(iv) the principal has either reversed or not availed of the input tax
credit in respect of such,-
(a) goods; or
(b) capital goods or, having availed of such credit, has reversed
the said credit, to the extent availed of by him.
Explanation.- For the purposes of this Chapter, the expression "capital goods"
shall have the same meaning as assigned to it in the Uttar Pradesh Value
Added Tax, 2008 (U.P. Act No. 5 of 2008)
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 163

CHAPTER XXI
MISCELLANEOUS
143. Job work procedure -
(1) A registered person (hereafter in this section referred to as the "principal")
may, under intimation and subject to such conditions as may be prescribed,
send any inputs or capital goods, without payment of tax, to a job worker for
job work and from there subsequently send to another job worker and
likewise, and shall,-
(a) bring back inputs, after completion of job work or otherwise, or
capital goods, other than moulds and dies, jigs and fixtures, or tools,
within one year and three years, respectively, of their being sent out, to
any of his place of business, without payment of tax;
(b) supply such inputs, after completion of job work or otherwise, or
capital goods, other than moulds and dies, jigs and fixtures, or tools,
within one year and three years, respectively, of their being sent out
from the place of business of a job worker on payment of tax within
India, or with or without payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of
business of a job worker in accordance with the provisions of this clause
unless the said principal declares the place of business of the job worker as
his additional place of business except in a case-
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may
be notified by the Commissioner.
[PROVIDED FURTHER that the period of one year and three years may,
on sufficient cause being shown, be extended by the Commissioner for
a further period not exceeding one year and two years respectively.]216
(2) The responsibility for keeping proper accounts for the inputs or capital
goods shall lie with the principal.
(3) Where the inputs sent for job work are not received back by the principal
after completion of job work or otherwise in accordance with the provisions of
clause (a) of subsection (1) or are not supplied from the place of business of
the job worker in accordance with the provisions of clause (b) of sub-section
(1) within a period of one year of their 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.
(4) Where the capital goods, other than moulds and dies, jigs and fixtures, or
tools, sent for job work are not received back by the principal in accordance
with the provisions of clause (a) of sub-section (1) or are not supplied from the
place of business of the job worker in accordance with the provisions of clause
(b) of sub-section (1) within a period of three years of their being sent out, it

216.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018.
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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.
(5) Notwithstanding anything contained in subsections (1) and (2), any waste
and scrap generated during the job work may be supplied by the job worker
directly from his place of business on payment of tax, if such job worker is
registered, or by the principal, if the job worker is not registered.
Explanation. - For the purposes of job work, input includes intermediate
goods arising from any treatment or process carried out on the inputs by the
principal or the job worker.
(4) Where the capital goods, other than moulds and dies, jigs and fixtures, or
tools, sent for job work are not received back by the principal in accordance
with the provisions of clause (a) of sub-section (1) or are not supplied from the
place of business of the job worker in accordance with the provisions of clause
(b) of sub-section (1) within a period of three years of their 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.
(5) Notwithstanding anything contained in subsections (1) and (2), any waste
and scrap generated during the job work may be supplied by the job worker
directly from his place of business on payment of tax, if such job worker is
registered, or by the principal, if the job worker is not registered.
Explanation. - For the purposes of job work, input includes intermediate
goods arising from any treatment or process carried out on the inputs by the
principal or the job worker.
144. Presumption as to documents in certain cases -
Where any document-
(i) is produced by any person under this Act or any other law for the
time being in force; or
(ii) has been seized from the custody or control of any person under
this Act or any other law for the time being in force; or
(iii) has been received from any place outside India in the course of any
proceedings under this Act or any other law for the time being in force,
and such document is tendered by the prosecution in evidence against him or
any other person who is tried jointly with him, the court shall--
(a) unless the contrary is proved by such person, presume-
(i) the truth of the contents of such document;
(ii) that the signature and every other part of such document
which purports to be in the handwriting of any particular person
or which the court may reasonably assume to have been signed
by, or to be in the handwriting of, any particular person, is in
that person's handwriting, and in the case of a document
executed or attested, that it was executed or attested by the
person by whom it purports to have been so executed or
attested;

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(b) admit the document in evidence notwithstanding that it is not duly

stamped, if such document is otherwise admissible in evidence.
Admissibility of micro films, facsimile copies of documents and
computer printouts as documents and as evidence.
145. Admissibility of micro films, facsimile copies of documents and
computer printouts as documents and as evidence -
(1) Notwithstanding anything contained in any other law for the time being in
force,-
(a) a micro film of a document or the reproduction of the image or
images embodied in such micro film (whether enlarged or not); or
(b) a facsimile copy of a document; or
(c) a statement contained in a document and included in a printed
material produced by a computer, subject to such conditions as may be
prescribed; or
(d) any information stored electronically in any device or media,
including any hard copies made of such information, shall be deemed
to be a document for the purposes of this Act and the rules made there
under and shall be admissible in any proceedings there under, without
further proof or production of the original, as evidence of any contents
of the original or of any fact stated therein of which direct evidence
would be admissible.
(2) In any proceedings under this Act and or the rules made there under,
where it is desired to give a statement in evidence by virtue of this section, a
certificate,-
(a) identifying the document containing the statement and describing
the manner in which it was produced;
(b) giving such particulars of any device involved in the production of
that document as may be appropriate for the purpose of showing that
the document was produced by a computer,
shall be evidence of any matter stated in the certificate and for the purposes
of this sub-section it shall be sufficient for a matter to be stated to the best of
the knowledge and belief of the person stating it.
146. Common Portal -
The Government may, on the recommendations of the Council, notify the
Common Goods and Services Tax Electronic Portal for facilitating registration,
payment of tax, furnishing of returns, computation and settlement of
integrated tax, electronic way bill and for carrying out such other functions
and for such purposes as may be prescribed.
147. Deemed Exports -
The Government may, on the recommendations of the Council, notify certain
supplies of goods as "deemed exports", where goods supplied do not leave
India, and payment for such supplies is received either in Indian rupees or in
convertible foreign exchange, if such goods are manufactured in India.

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148. Special procedure for certain processes -

The Government may, on the recommendations of the Council, and subject to
such conditions and safe guards as may be prescribed, notify certain classes
of registered persons, and the special procedures to be followed by such
persons including those with regard to registration, furnishing of return,
payment of tax and administration of such persons.
149. Goods and services tax compliance rating -
(1) Every registered person may be assigned a goods and services tax
compliance rating score by the Government based on his record of compliance
with the provisions of this Act.
(2) The goods and services tax compliance rating score may be determined on
the basis of such parameters as may be prescribed.
(3) The goods and services tax compliance rating score may be updated at
periodic intervals and intimated to the registered person and also placed in
the public domain in such manner as may be prescribed.
150. Obligation to furnish information return -
(1) Any person, being-
(a) a taxable person; or
(b) a local authority or other public body or association; or
(c) any authority of the State Government responsible for the collection
of value added tax or sales tax or State excise duty or an authority of
the Central Government responsible for the collection of excise duty or
customs duty; or
(d) an income tax authority appointed under the provisions of the
Income-tax Act, 1961 (Act No. 43 of 1961)
(e) a banking company within the meaning of clause (a) of section 45A
of the Reserve Bank of India Act, 1934 (Act No. 2 of 1934); or
(f) a State Electricity Board or an electricity distribution or
transmission licensee under the Electricity Act, 2003 (Act No. 36 of
2003), or any other entity entrusted with such functions by the Central
Government or the State Government; or
(g) the Registrar or Sub-Registrar appointed under section 6 of the
Registration Act, 1908 (16 of 1908); or
(h) a Registrar within the meaning of the Companies Act, 2013 (Act No.
18 of 2013); or
(i) the registering authority empowered to register motor vehicles under
the Motor Vehicles Act, 1988 (Act No. 59 of 1988.); or
(j) the Collector referred to in clause (c) of section 3 of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013 (Act No. 30 of 2013); or
(k) the recognised stock exchange referred to in clause (f) of section 2 of
the Securities Contracts (Regulation) Act, 1956 (Act No. 42 of 1956); or

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(l) a depository referred to in clause (e) of subsection (1) of section 2 of

the Depositories Act, 1996 (Act No. 22 of 1996); or
(m) an officer of the Reserve Bank of India as constituted under section
3 of the Reserve Bank of India Act, 1934 (Act No. 2 of 1934);
(n) the Goods and Services Tax Network, a company registered under
the Companies Act, 2013 (Act No. 18 of 2013); or
(o) a person to whom a Unique Identity Number has been granted
under sub-section (9) of section 25;or
(p) any other person as may be specified, on the recommendations of
the Council, by the Government,
who is responsible for maintaining record of registration or statement of
accounts or any periodic return or document containing details of payment of
tax and other details of transaction of goods or services or both or
transactions related to a bank account or consumption of electricity or
transaction of purchase, sale or exchange of goods or property or right or
interest in a property under any law for the time being in force, shall furnish
an information return of the same in respect of such periods, within such
time, in such form and manner and to such authority or agency as may be
prescribed.
(2) Where the Commissioner, or an officer authorized by him in this behalf,
considers that the information furnished in the information return is
defective, he may intimate the defect to the person who has furnished such
information return and give him an opportunity of rectifying the defect within
a period of thirty days from the date of such intimation or within such further
period which, on an application made in this behalf, the said authority may
allow and if the defect is not rectified within the said period of thirty days or,
the further period so allowed, then, notwithstanding anything contained in
any other provisions of this Act, such information return shall be treated as
not furnished and the provisions of this Act shall apply.
(3) Where a person who is required to furnish information return has not
furnished the same within the time specified in sub-section (1) or subsection
(2), the said authority may serve upon him a notice requiring furnishing of
such information return within a period not exceeding ninety days from the
date of service of the notice and such person shall furnish the information
return.
151. Power to collect statistics -
[The Commissioner or an officer authorised by him may, by an order, direct
any person to furnish information relating to any matter dealt with in
connection with this Act, within such time, in such form, and in such
manner, as may be specified therein.]217

217.Substituted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P.
Act No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to substitution clauses reads as under :-
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152. Bar on disclosure of information -

(1) No information [***]218 with respect to any matter given for the purposes of
section 150 or section 151 shall, without the previous consent in writing of
the concerned person or his authorised representative, be published in such
manner so as to enable such particulars to be identified as referring to a
particular person and no such information shall be used for the purpose of
any proceedings under this Act [without giving an opportunity of being heard
to the person concerned]219.
[***]220
(3) Nothing in this section shall apply to the publication of any information
relating to a class of taxable persons or class of transactions, if in the opinion
of the Commissioner, it is desirable in the public interest to publish such
information.
153. Taking assistance from an expert -
Any officer not below the rank of Assistant Commissioner may, having regard
to the nature and complexity of the case and the interest of revenue, take
assistance of any expert at any stage of scrutiny, inquiry, investigation or any
other proceedings before him.
154. Power to take samples -
The Commissioner or an officer authorised by him may take samples of goods
from the possession of any taxable person, where he considers it necessary,
and provide a receipt for any samples so taken.
155. Burden of Proof -
Where any person claims that he is eligible for input tax credit under this Act,
the burden of proving such claim shall lie on such person.

(1) The Commissioner may, if he considers that it is necessary so to do, by

notification, direct that statistics may be collected relating to any matter dealt
with by or in connection with this Act.
(2) Upon such notification being issued, the Commissioner, or any person authorised
by him in this behalf, may call upon the concerned persons to furnish such
information or returns, in such form and manner as may be prescribed, relating to
any matter in respect of which statistics is to be collected.
218.Omitted the words "of any individual return or part thereof" by The Uttar Pradesh Goods
and Services Tax (Amendment) Act, 2021 (U.P. Act No. 40 of 2021) Published vide Notification
No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated Lucknow, December 27, 2021.
219.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act
No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021
220.Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act
No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021. Prior to omission sub-section reads as under :-
(2) Except for the purposes of prosecution under this Act or any other Act for the time being in
force, no person who is not engaged in the collection of statistics under this Act or compilation
or computerisation thereof for the purposes of this Act, shall be permitted to see or have access
to any information or any individual return referred to in section 151.
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156. Persons deemed to be public servants -

All persons discharging functions under this Act shall be deemed to be public
servants within the meaning of section 21 of the Indian Penal Code (Act No.
45 of 1860).
157. Protection of action taken under this Act -
(1) No suit, prosecution or other legal proceedings shall lie against the
President, State President, Members, officers or other employees of the
Appellate Tribunal or any other person authorised by the said Appellate
Tribunal for anything which is in good faith done or intended to be done
under this Act or the rules made there under.
(2) No suit, prosecution or other legal proceedings shall lie against any officer
appointed or authorised under this Act for anything which is done or intended
to be done in good faith under this Act or the rules made there under.
158. Disclosure of information by a public servant -
(1) All particulars contained in any statement made, return furnished or
accounts or documents produced in accordance with this Act, or in any
record of evidence given in the course of any proceedings under this Act (other
than proceedings before a criminal court), or in any record of any proceedings
under this Act shall, save as provided in sub-section (3), not be disclosed.
(2) Notwithstanding anything contained in the Indian Evidence Act, 1872 (Act
No. 1 of 1872), no court shall, save as otherwise provided in sub-section (3),
require any officer appointed or authorised under this Act to produce before it
or to give evidence before it in respect of particulars referred to in sub-section
(1).
(3) Nothing contained in this section shall apply to the disclosure of,-
(a) any particulars in respect of any statement, return, accounts,
documents, evidence, affidavit or deposition, for the purpose of any
prosecution under the Indian Penal Code (Act No. 45 of 1860) or the
Prevention of Corruption Act, 1988 (Act No. 49 of 1988), or any other
law for the time being in force; or
(b) any particulars to the Central Government or the State Government
or to any person acting in the implementation of this Act, for the
purposes of carrying out the objects of this Act; or
(c) any particulars when such disclosure is occasioned by the lawful
exercise under this Act of any process for the service of any notice or
recovery of any demand; or
(d) any particulars to a civil court in any suit or proceedings, to which
the Government or any authority under this Act is a party, which
relates to any matter arising out of any proceedings under this Act or
under any other law for the time being in force authorizing any such
authority to exercise any powers there under; or
(e) any particulars to any officer appointed for the purpose of audit of
tax receipts or refunds of the tax imposed by this Act; or

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(f) any particulars where such particulars are relevant for the purposes
of any inquiry into the conduct of any officer appointed or authorised
under this Act, to any person or persons appointed as an inquiry officer
under any law for the time being in force; or
(g) any such particulars to an officer of the Central Government or of
any State Government, as may be necessary for the purpose of
enabling that Government to levy or realise any tax or duty; or
(h) any particulars when such disclosure is occasioned by the lawful
exercise by a public servant or any other statutory authority, of his or
its powers under any law for the time being in force; or
(i) any particulars relevant to any inquiry into a charge of misconduct
in connection with any proceedings under this Act against a practicing
advocate, a tax practitioner, a practising cost accountant, a practising
chartered accountant, a practising company secretary to the authority
empowered to take disciplinary action against the members practising
the profession of a legal practitioner, a cost accountant, a chartered
accountant or a company secretary, as the case may be; or
(j) any particulars to any agency appointed for the purposes of data
entry on any automated system or for the purpose of operating,
upgrading or maintaining any automated system where such agency is
contractually bound not to use or disclose such particulars except for
the aforesaid purposes; or
(k) any such particulars to an officer of the Government as may be
necessary for the purposes of any other law for the time being in force;
and
(l) Any information relating to any class of taxable persons or class of
transactions for publication, if, in the opinion of the Commissioner, it
is desirable in the public interest, to publish such information.
[158A. (1) Notwithstanding anything contained in sections 133, 152 and 158,
the following details furnished by a registered person may, subject to the
provisions of sub-section (2), and on the recommendations of the Council, be
shared by the common portal with such other systems as may be notified by
the Government, in such manner and subject to such conditions as may be
prescribed, namely:-
(a) particulars furnished in the application for registration under
section 25 or in the return filed under section 39 or under section 44;
(b) the particulars uploaded on the common portal for preparation of
invoice, the details of outward supplies furnished under section 37 and
the particulars uploaded on the common portal for generation of
documents under section 68;
(c) such other details as may be prescribed.
(2) For the purposes of sharing details under sub-section (1), the consent shall
be obtained, of-
(a) the supplier, in respect of details furnished under clauses (a), (b)
and (c) of sub-section (1); and
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(b) the recipient, in respect of details furnished under clause (b) of sub-
section (1), and under clause (c) of sub-section (1) only where such
details include identity information of the recipient, in such form and
manner as may be prescribed.
(3) Notwithstanding anything contained in any law for the time being in force,
no action shall lie against the Government or the common portal with respect
to any liability arising consequent to information shared under this section
and there shall be no impact on the liability to pay tax on the relevant supply
or as per the relevant return.]221
159. Publication of information in respect of persons in certain cases -
(1) If the Commissioner, or any other officer authorised by him in this behalf,
is of the opinion that it is necessary or expedient in the public interest to
publish the name of any person and any other particulars relating to any
proceedings or prosecution under this Act in respect of such person, it may
cause to be published such name and particulars in such manner as it thinks
fit.
(2) No publication under this section shall be made in, relation to any penalty
imposed under this Act until the time for presenting an appeal to the
Appellate Authority under section 107 has expired without an appeal having
been presented or the appeal, if presented, has been disposed of.
Explanation.-
In the case of firm, company or other association of persons, the names of the
partners of the firm, directors, managing agents, secretaries and treasurers or
managers of the company, or the members of the association, as the case may
be, may also be published if, in the opinion of the Commissioner, or any other
officer authorised by him in this behalf, circumstances of the case justify it.
160. Assessment proceedings, etc. not to be invalid on certain grounds -
(1) No assessment, re-assessment, adjudication, review, revision, appeal,
rectification, notice, summons or other proceedings done, accepted, made,
issued, initiated, or purported to have been done, accepted, made, issued,
initiated in pursuance of any of the provisions of this Act shall be invalid or
deemed to be invalid merely by reason of any mistake, defect or omission
therein, if such assessment, reassessment, adjudication, review, revision,
appeal, rectification, notice, summons or other proceedings are in substance
and effect in conformity with or according to the intents, purposes and
requirements of this Act or any existing law.
(2) The service of any notice, order or communication shall not be called in
question, if the notice, order or communication, as the case may be, has
already been acted upon by the person to whom it is issued or where such
service has not been called in question at or in the earlier proceedings
commenced, continued or finalised pursuant to such notice, order or
communication.

221.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act
No. 14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023
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161. Rectification of errors apparent on the face of record -

Without prejudice to the provisions of section 160, and notwithstanding
anything contained in any other provisions of this Act, any authority, who has
passed or issued any decision or order or notice or certificate or any other
document, may rectify any error which is apparent on the face of record in
such decision or order or notice or certificate or any other document, either on
its own motion or where such error is brought to its notice by any officer
appointed under this Act or an officer appointed under the Central Goods and
Services Tax Act, 2017 (Act No. 12 of 2017) or by the affected person within a
period of three months from the date of issue of such decision or order or
notice or certificate or any other document, as the case may be:
Provided that no such rectification shall be done after a period of six months
from the date of issue of such decision or order or notice or certificate or any
other document:
Provided further that the said period of six months shall not apply in such
cases where the rectification is purely in the nature of correction of a clerical
or arithmetical error, arising from any accidental slip or omission:
Provided also that where such rectification adversely affects any person, the
principles of natural justice shall be followed by the authority carrying out
such rectification.
162. Bar on jurisdiction of civil courts -
Save as provided in sections 117 and 118, no civil court shall have
jurisdiction to deal with or decide any question arising from or relating to
anything done or purported to be done under this Act.
163. Levy of fee -
Wherever a copy of any order or document is to be provided to any person on
an application made by him for that purpose, there shall be paid such fee as
may be prescribed.
164. Power of Government to make rules -

(1) The Government may, on the recommendations of the Council, by

notification, make rules for carrying out the provisions of this Act.
(2) Without prejudice to the generality of the provisions of sub-section (1), the
Government may make rules for all or any of the matters which by this Act
are required to be, or may be, prescribed or in respect of which provisions are
to be or may be made by rules.
(3) The power to make rules conferred by this section shall include the power
to give retrospective effect to the rules or any of them from a date not earlier
than the date on which the provisions of this Act come into force.
(4) Any rules made under sub-section (1) or subsection (2) may provide that a
contravention thereof shall be liable to a penalty not exceeding ten thousand
rupees.

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165. Power to make regulations -

The Government may, by notification, make regulations consistent with this
Act and the rules made there under to carry out the provisions of this Act.
166. Laying of rules, regulations and notifications -
Every rule made by the Government, every regulation made by the
Government and every notification issued by the Government under this Act,
shall be laid, as soon as may be after it is made or issued, before the State
Legislature, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, the State Legislature agrees in making any
modification in the rule or regulation or in the notification, as the case may
be, or the State Legislature agrees that the rule or regulation or the
notification should not be made, the rule or regulation or notification, as the
case may be, shall thereafter have effect only in such modified form or be of
no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously
done under that rule or regulation or notification, as the case may be.
167. Delegation of powers -
The Commissioner may, by notification, direct that subject to such conditions,
if any, as may be specified in the notification, any power exercisable by any
authority or officer under this Act may be exercisable also by another
authority or officer as may be specified in such notification.
168. Power to issue instructions or directions -
The Commissioner may, if he considers it necessary or expedient so to do for
the purpose of uniformity in the implementation of this Act, issue such
orders, instructions or directions to the State tax officers as it may deem fit,
and thereupon all such officers and all other persons employed in the
implementation of this Act shall observe and follow such orders, instructions
or directions.
[168A. Power of Government to Extend Time in Special Circumstances -
(1) Notwithstanding anything contained in this Act the Government may on
recommendations of the council, by notification extend the time limit specified
in, or prescribed or notified under, this Act in respect of actions which cannot
be completed or complied with due to force majeure.

(2) The power of this section shall include the power to give retrospective effect
to such notification from a date not earlier than the date of commencement of
this Act.
Explanation-For the purpose of this section the expression 'force majeure'
means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or

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any other calamity caused by nature or otherwise affecting the

implementation of any of the provisions of this Act.]222
169. Service of notice in certain circumstances -
(1) Any decision, order, summons, notice or other communication under this
Act or the rules made there under shall be served by any one of the following
methods, namely:--
(a) by giving or tendering it directly or by a messenger including a
courier to the addressee or the taxable person or to his manager or
authorized representative or an advocate or a tax practitioner holding
authority to appear in the proceedings on behalf of the taxable person
or to a person regularly employed by him in connection with the
business, or to any adult member of family residing with the taxable
person; or
(b) by registered post or speed post or courier with acknowledgement
due, to the person for whom it is intended or his authorised
representative, if any, at his last known place of business or residence;
or
(c) by sending a communication to his e-mail address provided at the
time of registration or as amended from time to time; or
(d) by making it available on the common portal; or
(e) by publication in a newspaper circulating in the locality in which the
taxable person or the person to whom it is issued is last known to have
resided, carried on business or personally worked for gain; or
(f) if none of the modes aforesaid is practicable, by affixing it in some
conspicuous place at his last known place of business or residence and
if such mode is not practicable for any reason, then by affixing a copy
thereof on the notice board of the office of the concerned officer or
authority who or which passed such decision or order or issued such
summons or notice.
(2) Every decision, order, summons, notice or any communication shall be
deemed to have been served on the date on which it is tendered or published
or a copy thereof is affixed in the manner provided in sub-section (1).
(3) When such decision, order, summons, notice or any communication is
sent by registered post or speed post, it shall be deemed to have been received
by the addressee at the expiry of the period normally taken by such post in
transit unless the contrary is proved.
170. Rounding off of tax etc. -
The amount of tax, interest, penalty, fine or any other sum payable, and the
amount of refund or any other sum due, under the provisions of this Act shall
be rounded off to the nearest rupee and, for this purpose, where such amount
contains a part of a rupee consisting of paisa, then, if such part is fifty paisa

222. Insertion of new Section by The Uttar Pradesh Goods And Services Tax (Second
Amendment) Act, 2020 (U.P. Act no. 16 of 2020) vide No. 1574(2)/LXXIX-V-1-20-1(ka)-19-20
Dated 31 August, 2020 w.e.f. 31.03.2020.
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or more, it shall be increased to one rupee and if such part is less than fifty
paisa it shall be ignored.
171. Anti-profiteering Measure -
(1) Any reduction in rate of tax on any supply of goods or services or the
benefit of input tax credit shall be passed on to the recipient by way of
commensurate reduction in prices.
(2) The Central Government may, on recommendations of the Council, by
notification, constitute an Authority, or empower an existing Authority
constituted under any law for the time being in force, to examine whether
input tax credits availed by any registered person or the reduction in the tax
rate have actually resulted in a commensurate reduction in the price of the
goods or services or both supplied by him.
(3) The Authority referred to in sub-section (2) shall exercise such powers and
discharge such functions as may be prescribed.
[(3A) Where the Authority referred to in sub-section (2), after holding
examination as required under the said sub-section comes to the conclusion
that any registered person has profiteered under sub-section (1), such person
shall be liable to pay penalty equivalent to ten per cent. of the amount so
profiteered:
Provided that no penalty shall be leviable if the profiteered amount is
deposited within thirty days of the date of passing of the order by the
Authority.
Explanation.—For the purposes of this section, the expression “profiteered”
shall mean the amount determined on account of not passing the benefit of
reduction in rate of tax on supply of goods or services or both or the benefit of
input tax credit to the recipient by way of commensurate reduction in the
price of the goods or services or both.]223
172. Removal of difficulties -
(1) If any difficulty arises in giving effect to any provisions of this Act, the
Government may, on the recommendations of the Council, by a general or a
special order published in the Official Gazette, make such provisions not
inconsistent with the provisions of this Act or the rules or regulations made
there under, as may be necessary or expedient for the purpose of removing
the said difficulty:
Provided that no such order shall be made after the expiry of a period of [five
years]224 from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be, after
it is made, before the State Legislature.

223.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2020 (U.P. Act
No. 5 of 2020) Published vide Notification No. 415/79-V-1-20-1(A) Dated Lucknow, March 12,
2020. w.e.f. 01 January, 2020.
224. Substituted vide The Uttar Pradesh Goods and Services Tax (Third Amendment) Act, 2020
(U.P. Act no. 24 of 2020) vide Notification No. 1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31
August, 2020 for "three years".
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173. Amendment of certain Acts -

Save as otherwise provided in this Act, on and from the date of
Commencement of this Act,-
(i) In The Uttar Pradesh Municipal Corporation Act 1959 (U.P. Act No. 1
of 1959) clause (b) of sub section (2) of section 172 and section 192,
193 shall be omitted.
(ii) In The Uttar Pradesh Municipalities Act 1916 (U.P. Act No. 2 of
1916) clause (7) of sub section (2) of section 128 shall be omitted.
(iii) In The Uttar Pradesh Taxation and Land Revenue Laws Act-1975,
(U.P. Act No. 8 of 1975) Chapter II shall be omitted.
174. Repeal and saving -
(1) Save as otherwise provided in this Act, on and from the date of
Commencement of this Act,-
(i) The Uttar Pradesh Value Added Tax Act-2008, (U.P. Act No. 5 of
20058) except in respect of goods included in the Entry 54 of the State
List of the Seventh Schedule to the Constitution,
(ii) The Uttar Pradesh Tax on Entry of goods into local areas Act 2007
(U.P. Act No. 30 of 2007)
(iii) The Uttar Pradesh Entertainment and Betting Tax Act, 1979 (U.P.
Act No. 28 of 1979)
(iv) The Uttar Pradesh Advertisements Tax Act, 1981 (U.P. Act No. 16 of
1981)
(v) The United Provinces Sales of Motor Spirit, Diesel Oil and Alcohol
Taxation Act, 1939. (U.P. Act No. 1 of 1939)
(vi) The Uttar Pradesh Sugarcane (Purchase Tax) Act, 1961. (U.P. Act
No. 9 of 1961)
(Hereafter referred to as the repealed Acts) are hereby repealed
(2) The repeal of the said Acts and the amendment of the Acts specified in
section 173 (hereafter referred to as "such amendment" or "amended Act", as
the case may be) to the extent mentioned in sub-section (1) or section 173
shall not-
(a) revive anything not in force or existing at the time of such
amendment or repeal; or
(b) affect the previous operation of the amended Acts or repealed Acts
and orders or anything duly done or suffered there under; or
(c) affect any right, privilege, obligation, or liability acquired, accrued or
incurred under the amended Acts or repealed Acts or orders under
such repealed or amended Acts:
Provided that any tax exemption granted as an incentive against
investment through a notification shall not continue as privilege if the
said notification is rescinded on or after the appointed day; or

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(d) affect any tax, surcharge, penalty, fine, interest as are due or may
become due or any forfeiture or punishment incurred or inflicted in
respect of any offence or violation committed against the provisions of
the amended Acts or repealed Acts; or
(e) affect any investigation, inquiry, verification (including scrutiny and
audit), assessment proceedings, adjudication and any other legal
proceedings or recovery of arrears or remedy in respect of any such tax,
surcharge, penalty, fine, interest, right, privilege, obligation, liability,
forfeiture or punishment, as aforesaid, and any such investigation,
inquiry, verification (including scrutiny and audit), assessment
proceedings, adjudication and other legal proceedings or recovery of
arrears or remedy may be instituted, continued or enforced, and any
such tax, surcharge, penalty, fine, interest, forfeiture or punishment
may be levied or imposed as if these Acts had not been so amended or
repealed; or
(f) affect any proceedings including that relating to an appeal, revision,
review or reference, instituted before, on or after the appointed day
under the said amended Acts or repealed Acts and such proceedings
shall be continued under the said amended Acts or repealed Acts as if
this Act had not come into force and the said Acts had not been
amended or repealed.
(3) The mention of the particular matters referred to in section 173 and sub-
section (1) shall not be held to prejudice or affect the general application of
section 6 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of
1904) with regard to the effect of repeal.

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SCHEDULE I
[See section 7]
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT
CONSIDERATION
1. Permanent transfer or disposal of business assets where input tax credit
has been availed on such assets.
2. Supply of goods or services or both between related persons or between
distinct persons as specified in section 25, when made in the course or
furtherance of business:
Provided that gifts not exceeding fifty thousand rupees in value in a financial
year by an employer to an employee shall not be treated as supply of goods or
services or both.
3. Supply of goods-
(a) by a principal to his agent where the agent undertakes to supply such
goods on behalf of the principal; or
(b) by an agent to his principal where the agent undertakes to receive such
goods on behalf of the principal.
4. Import of services by a [person]225 from a related person or from any of his
other establishments outside India, in the course or furtherance of business.

225.Substituted vide The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P.
Act No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18
Lucknow : Dated : 24 December, 2018 w.e.f. 01 February, 2019 for "taxable person".
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SCHEDULE II
[See section 7]
ACTIVITIES [OR TRANSACTIONS]226 TO BE TREATED AS SUPPLY OF
GOODS OR SUPPLY OF SERVICES
1. Transfer
(a) any transfer of the title in goods is a supply of goods;
(b) any transfer of right in goods or of undivided share in goods without the
transfer of title thereof, is a supply of services;
(c) any transfer of title in goods under an agreement which stipulates that
property in goods shall pass at a future date
upon payment of full consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of
services;
(b) any lease or letting out of the building including a commercial, industrial
or residential complex for business or commerce, either wholly or partly, is a
supply of services.
3. Treatment or process
Any treatment or process which is applied to another person's goods is a
supply of services.
4. Transfer of business assets
(a) where goods forming part of the assets of a business are transferred or
disposed of by or under the directions of the person carrying on the business
so as no longer to form part of those assets, [***]227, such transfer or disposal
is a supply of goods by the person;
(b) where, by or under the direction of a person carrying on a business, goods
held or used for the purposes of the business are put to any private use or are
used, or made available to any person for use, for any purpose other than a
purpose of the business, [***]228, the usage or making available of such goods
is a supply of services;

226.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 July, 2017.
227.The words "whether or not for a consideration" Omitted by The Uttar Pradesh Goods and
Services Tax (Third Amendment) Act, 2020 (U.P. Act no. 24 of 2020) vide Notification No.
1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August, 2020 w.e.f. 01 July, 2017 and the
amendment made effective vide Notification No. 04/XI-2-21-9(47)/17-U.P. Act-1-2017-Order-
(170)-2021 dated 15th January, 2021 w.e.f. 01 January, 2021.
228.The words "whether or not for a consideration" Omitted by The Uttar Pradesh Goods and
Services Tax (Third Amendment) Act, 2020 (U.P. Act no. 24 of 2020) vide Notification No.
1573(2)/LXXIX-V-1-20-1(ka)-27-20 Dated 31 August, 2020 w.e.f. 01 July, 2017 and the
amendment made effective vide Notification No. 04/XI-2-21-9(47)/17-U.P. Act-1-2017-Order-
(170)-2021 dated 15th January, 2021 w.e.f. 01 January, 2021.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 180

(c) where any person ceases to be a taxable person, any goods forming part of
the assets of any business carried on by him shall be deemed to be supplied
by him in the course or furtherance of his business immediately before he
ceases to be a taxable person, unless-
(i) the business is transferred as a going concern to another person; or
(ii) The business is carried on by a personal representative who is deemed to
be a taxable person.
5. Supply of services
The following shall be treated as supply of service, namely:--
(a) renting of immovable property;
(b) construction of a complex, building, civil structure or a part thereof,
including a complex or building intended for sale to a buyer, wholly or partly,
except where the entire consideration has been received after issuance of
completion certificate, where required, by the competent authority or after its
first occupation, whichever is earlier.229
Explanation.- For the purposes of this clause-
(1) the expression "competent authority" means the Government or any
authority authorised to issue completion certificate under any law for the time
being in force and in case of non-requirement of such certificate from such
authority, from any of the following, namely:-
(i) an architect registered with the Council of Architecture constituted under
the Architects Act, 1972; or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or
village or development or planning authority;
(2) the expression "construction" includes additions, alterations, replacements
or re modeling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual
property right;
(d) development, design, programming, customisation, adaptation,
upgradation, enhancement, implementation of information technology
software;
(e) agreeing to the obligation to refrain from an act, or to tolerate an act or a
situation, or to do an act; and

229.The Uttar Pradesh Goods and Services Tax (Eighth Removal of Difficulties) Order, 2019
published vide Order no. KA.NI.-2-813/XI-9(42)/17-2019, dated 28 May, 2019 clarified as
under:
"It is hereby clarified that in case of supply of services covered by item (b) of para 5 of Schedule
II of the said Act, the amount of credit attributable to the taxable supplies including zero rated
supplies and exempt supplies shall be determined on the basis of the area of the construction
of the complex, building, civil structure or a part thereof, which is taxable and the area which is
exempt."
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 181

(f) transfer of the right to use any goods for any purpose (whether or not for a
specified period) for cash, deferred payment or other valuable consideration.
6. Composite supply
The following composite supplies shall be treated as a supply of services,
namely:-
(a) works contract as defined in clause (119) of section 2; and
(b) supply, by way of or as part of any service or in any other manner
whatsoever, of goods, being food or any other article for human consumption
or any drink (other than alcoholic liquor for human consumption), where such
supply or service is for cash, deferred payment or other valuable
consideration.
[***]230

230.Omitted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2021 (U.P. Act
No. 40 of 2021) Published vide Notification No. 1090(2)/LXXIX-V-1-21-1-ka-32-21 Dated
Lucknow, December 27, 2021 w.e.f. 01 July, 2017. Prior to omission paragraph reads as
under:-
7. Supply of Goods
The following shall be treated as supply of goods, namely:--
Supply of goods by any unincorporated association or body of persons to a member thereof for
cash, deferred payment or other valuable consideration.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 182

SCHEDULE III
[See section 7]
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER
AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES
1. Services by an employee to the employer in the course of or in relation to
his employment.
2. Services by any court or Tribunal established under any law for the time
being in force.
3. (a) the functions performed by the Members of Parliament, Members of
State Legislature, Members of Panchayats, Members of Municipalities and
Members of other local authorities;
(b) the duties performed by any person who holds any post in pursuance of
the provisions of the Constitution in that capacity; or
(c) the duties performed by any person as a Chairperson or a Member or a
Director in a body established by the Central Government or a State
Government or local authority and who is not deemed as an employee before
the commencement of this clause.
4. Services of funeral, burial, crematorium or mortuary including
transportation of the deceased.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of
building.
6. Actionable claims, other than [specified actionable claims]231.
[[7. Supply of goods from a place outside India to another place outside India
without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home
consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of
documents of title to the goods, after the goods have been dispatched from the
port of origin located outside India but before clearance for home
consumption.]232]233
[Explanation 1].234-For the purposes of paragraph 2, the term "court" includes
District Court, High Court and Supreme Court.

231. Substituted for the Words "lottery, betting and gambling" by The Uttar Pradesh Goods And

Services Tax (Second Amendment) Act, 2023 (U.P. Act No. 19 Of 2023) Published Vide No.
579(2)/LXXIX-V-1–2023-1-ka-18-2023 Dated Lucknow, December 8, 2023 w.e.f. 1-10-2023
232. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act

No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :

Dated : 24 December, 2018 w.e.f. 01 February, 2019.
233.Paragraphs 7 and 8 and the Explanation 2 thereof (as inserted vide section 31 of U. P. Act
45 of 2018) shall be deemed to have been inserted therein with effect from the 1" day of July,
2017 by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of
2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow,
August 21, 2023
234. Word "Explanation" numbered as Explanation 1 by The Uttar Pradesh Goods and Services

Tax (Amendment) Act, 2018 (U.P. Act No. 45 of 2018) Published vide Notification No.
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2022 UTTAR PRADESH GOODS AND SERVICES TAX ACT, 2017 183

[[EXPLANATION 2. - For the purposes of paragraph 8, the expression

"warehoused goods" shall have the same meaning as assigned to it in the
Customs Act, 1962 (Act No. 52 of 1962).]235]236
[No refund shall be made of all the tax which has been collected, but which
would not have been so collected, had sub-section (1) been in force at all
material times.]237

2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow : Dated : 24 December, 2018 w.e.f. 01 February,

2019.
235.Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2018 (U.P. Act
No. 45 of 2018) Published vide Notification No. 2577(2)/LXXIX-V-1-18-1(Ka)-23-18 Lucknow :
Dated : 24 December, 2018 w.e.f. 01 February, 2019.
236.Paragraphs 7 and 8 and the Explanation 2 thereof (as inserted vide section 31 of U. P. Act
45 of 2018) shall be deemed to have been inserted therein with effect from the 1" day of July,
2017 by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No. 14 of
2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated Lucknow,
August 21, 2023
237
. Inserted by The Uttar Pradesh Goods and Services Tax (Amendment) Act, 2023 (U.P. Act No.
14 of 2023) Published Vide Notification No. 420(2)/LXXIX-V-1-2023-1(ka)-13-2023 Dated
Lucknow, August 21, 2023

Compiled by Commercial Tax Department, U.P. in Association with National Law Book Publications, Ghaziabad