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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 sub-section (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 good sheldin stock on the day
immediately preceding the date of grant of registration;
(c) whereanyregisteredpersonceasestopaytaxundersection 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 taxunder section9:
Provided that the credit on capital goods shall be reduced by such
percentage points as may be prescribed;
(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 input sheldin stock and inputs contained in semi-
finished 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 ledger or electronic cash ledger, equivalent to the credit of
input tax in respect of inputs held in stock andinputs 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
sub-section (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
 ॢबहर गजट [सधरण 8 मई 2017 159

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 section15, 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.
19. Taking input tax credit in respect of inputs and capital goods sent for job work.—
(1) Theprincipalshall,subjecttosuchconditionsandrestrictions as may be prescribed,
be allowed input tax credit on inputs sent to a job worker for jobwork.
(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 ofbusiness.
(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 sub-section (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 containingtheamountofinputtaxcreditbeingdistributedinsuch manner as
may beprescribed.
(2) The Input Service Distributor may distribute the credit subject to the
following conditions, namely:––
(a) the credit can be distributed to the recipients of credit against a 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
160 ॢबहर गजट [सधरण 8 मई 2017
recipient of credit shall be distributed amongst such recipients to whom the
input service is attributable and such distribution shall be proration the
basis of the turn over in a State or turn over 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
creditis 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 bedistributed;
(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”,inrelation 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 entry 84 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.—Where the Input Service
Distributor distributes the credit in contravention of the provisions contained in section 20 resulting
inexcessdistributionofcredittooneormorerecipientsofcredit, 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.

CHAPTER - VI
REGISTRATION
22. Persons liable forregistration.—
(1) Every supplier making a taxable supply of goods or servicesor 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:
Providedthatwheresuchpersonmakestaxablesuppliesofgoods 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 lakhrupees.
(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.
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(4) Notwithstanding anything contained in sub-sections (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
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
registeredjobworker;
(iii) the expression“specia lcategory States”shall mean the States as specified in sub-
clause (g) of clause (4) of article 279A of the Constitution.
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 notliable to tax or wholly exempt from tax under
this Act or under the Integrated Goods and Services TaxAct;
(b) an agriculturist, to the extent of supply of produce out of cultivation of
land.
(2) The Government may, on the recommendations of the Council, by
notification, specify the category of persons who may be exempted from
obtaining registration under this Act.
24. Compulsory registration in certain cases.—Notwith standing anything contained in
sub-section (1) ofsection 22, the following categories of persons shall be required to be registered
under thisAct,-
(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;
(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) personswhosupplygoodsorservicesorboth,otherthansupplies specified under
sub-section (5) of section 9, through such electronic commerce operator who
is required to collect tax at source under section52;
(x) every electronic commerce operator;
(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; and
(xii) such other person or class of persons as may be notified by the Government
on the recommendations of the Council.
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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.
Explanation.—Every person who makes a supply from the territorial
waters of India shall obtain registration in the coastalState where the nearest
point of the appropriate baseline islocated.
(2) A person seeking registration under this Act shall be granted a single
registration:
Provided that a person having multiple business verticals in the State may
be granted separate registration for each business vertical, subject to such
conditions as may beprescribed.
(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 in order to be eligible for grant ofregistration:
Providedthatapersonrequiredtodeducttaxundersection51may 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 ofregistration.
(7) Notwithstanding anything contained in sub-section (6), a non-resident taxable
person may be granted registration under sub-section (1) on the basis of
such other documents as may beprescribed.
(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 sub-section (1),––
(a) any specialised agency of the United NationsOrganisation or any
Multilateral Financial Institution and Organisationnotified under the United
Nations (Privileges and Immunities) Act, 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.
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(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)ThegrantofregistrationortheUniqueIdentityNumberunder the Central Goods and Services
Tax Act shall be deemed to be a grantofregistrationortheUniqueIdentityNumberunderthisAct
subject to the condition that the application for registration orthe Unique Identity Number has not
been rejected under this Act within the time specified in sub-section (10) of section25.
(2) Notwithstanding anything contained in sub-section (10) of section 25, any rejection
of application for registration or the Unique Identity Number under the Central Goods and
Services Tax Act shall be deemed to be a rejection of application for registration under this
Act.
27. Special provisionsrelating to casual taxable person and non-resident taxable
person.—
(1) The certificate of registration issued to a casual taxable personor 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),suchtaxablepersonshalldepositanadditionalamountof tax equivalent to
the estimated tax liability of such person for the period for which the extension
issought.
(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.
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 beprescribed.
(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:
Providedfurtherthattheproperofficershallnotrejecttheapplication for
amendment in the registration particulars without giving the person an opportunity
of beingheard.
(3) Any rejection or approval of amendments under the Central Goods and
Services Tax Act shall be deemed to be a rejection or approval under this Act.