Manipur GST Bill adds un-denatured alcohol to taxable goods

This Bill amends the Manipur Goods and Services Tax Act, 2017 to update tax rules, including expanding the definition of taxable alcoholic products, allowing the government to waive tax on supplies where non-levy was a general practice, and introducing a new procedure for determining tax for financial years 2024-25 onwards.

Who it concerns: Registered persons (businesses) in Manipur, suppliers and recipients of goods and services, and the State Government and tax authorities.

What the bill does

• Includes 'un-denatured extra neutral alcohol or rectified spirit' in the definition of alcoholic liquor for human consumption.
• Allows the Government to direct that State tax not be paid on supplies where non-levy or short-levy was a generally prevalent practice.
• Clarifies that the date of invoice issuance by the recipient counts as the time of supply if the recipient issues the invoice.
• Extends the deadline for claiming input tax credit for invoices from Financial Years 2017-18 to 2020-21 to November 30, 2021.
• Limits the applicability of Sections 73 and 74 (determination of tax) to periods up to Financial Year 2023-24.
• Inserts a new Section 74A for determining tax not paid or short paid for Financial Year 2024-25 onwards, with a notice period of 42 months and specific penalty structures (10% of tax due or Rs. 10,000, whichever is higher, for non-fraud cases; full tax amount for fraud).
• Prohibits refunds of unutilised input tax credit on zero-rated supplies if export duty is charged on those goods.
• Requires persons summoned by tax officers to attend and state the truth or produce documents.
• Mandates monthly electronic returns for tax deducted at source, even if no deductions were made.

Also in the document

• The Bill is an amendment to an existing Act (Manipur Goods and Services Tax Act, 2017).
• Several provisions are deemed to have come into force on specific past dates, such as October 30, 2024, and November 1, 2024.
• The Bill introduces specific penalties for tax evasion, distinguishing between fraud and other reasons for non-payment.