Governor issues Ordinance Amending UP GST Act on ISD and Penalty for Unregistered Machines [Read Notification]

The Governor of Uttar Pradesh has issued an ordinance amending the Uttar Pradesh Goods and Services Tax Act, 2017. with regards to the Input Service Distributor ( ISD ). The governor issued the same as the assembly is not in session, however, immediate action is needed.

This Ordinance may be called the Uttar Pradesh Goods and Services Tax (Amendment) Ordinance, 2024. The notable amendments are made in consonance with the changes in the Central GST Act.

The ordinance has made amendments to Section 2(61), Section 20 and also inserted new Section 122A.

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AMENDMENTS

In section 2, for clause (61), the following clause shall be substituted namely:

"(61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;".

Substitution of section 20 - Manner of distribution of credit by Input Service Distributor

For section 20 of the principal Act, the following section shall be substituted, namely:-

"20. (I) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.

(2) The Input Service Distributor shall distribute the credit of state tax or integrated tax charged on invoices received by him, including the credit of state or integrated tax in respect of services subject to levy of  tax under sub-section (3) or sub-section (4) of section 9 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed.

(3) The credit of state tax shall be distributed as state tax or integrated tax and integrated tax as integrated tax or state tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.".

Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here

Insertion of new section 122A - Penalty for failure to register certain machines used in manufacture of goods as per special procedure

After section 122 of the principal Act, the following section shall be inserted, namely:-

"122A. (I) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.

(2) In addition to the penalty under sub-section (l), every machine not so registered shall be liable for seizure and confiscation:

Provided that such machine shall not be confiscated where-

(a) the penalty so imposed is paid; and

(b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty.".

To Read the full text of the Notification CLICK HERE

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