Manipur GST (Second Amendment) Ordinance, 2025: Track-and-Trace System, New Penalties and ITC Clarifications Introduced [Read Notification]
Manipur’s 2025 GST Ordinance promulgates track-and-trace with unique IDs AND INTRODUCED new penalties for non-compliance among a host of other changes.
Income tax - Notice Issued within Limitation - Supreme Court - Interfere - Patna HC - Dismissing Petition - taxscan
Income tax - Notice Issued within Limitation - Supreme Court - Interfere - Patna HC - Dismissing Petition - taxscan
The Ministry of Lawand Justice has notified the Manipur Goods and Services Tax (Second Amendment) Ordinance, 2025 on October 7, 2025. This State-specific tax legislation aligns the State GST framework with amendments introduced through the Finance Act, 2025 and the decisions of the 56th GST Council meeting that was held in early-September.
The latest Ordinance introduces a host of new changes - among which is a statutory track-and-trace system for goods, imposes new penalties for non-compliance, modifies appeal pre-deposit requirements and also provides mechanism for retrospective clarification on input tax credit (ITC) involving “plant and machinery.”
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A key feature of the Ordinance is the insertion of Section 148A, which empowers the Government to specify goods and classes of persons subject to a track-and-trace mechanism upon the recommendations of the GST Council. This includes the affixation of unique identification markings such as digital stamps or secure marks to ensure traceability through electronic storage and access of information.
Persons dealing with such goods are required to furnish detailed information and maintain records in the manner prescribed; such persons are also required to furnish the particulars of machinery installed at their manufacturing sites.
The ordinance also introduces Section 122B in the Principal Act - this specifies a penalty for failure to adhere to the track-and-trace requirements. Any contravention will attract a penalty equal to ₹1 lakh or 10% of the tax payable on such goods, whichever is higher, in addition to other penalties that may be applicable under the Act.
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The Ordinance also amends Section 17(5)(d) by substituting the phrase “plant or machinery” with “plant and machinery”, with retrospective effect from July 1, 2017. The change clarifies that all references to “plant or machinery” shall be read as “plant and machinery” notwithstanding any court ruling to the contrary.
This amendment follows deliberations in the GST Council to resolve interpretative disputes that arose after the Safari Retreats case, aligning the statutory wording with the Council’s intent to narrow ITC restrictions strictly to civil structures and not machinery installed therein.
Also Read: Safari RetreatsCase: Interpreting 'Plant and Machinery' and Scope of Input Tax Credit in GSTEra
Sections 107 and 112 have been amended to mandate a 10% pre-deposit of the penalty amount when filing appeals against orders demanding only penalties and not tax.
Other aligned provisions update procedural rules for statements, returns and Schedule III to include specific transactions relating to Special Economic Zones (SEZs) and Free Trade Warehousing Zones (FTWZs) with a clause that prohibits refunds of tax collected before the new provisions take effect.
Also Read: GST Appellate Tribunal Appeal Filing: Find Checklist Here
The 2025 Ordinance seeks to synchronize the Manipur GST Act, 2017 with the recent Central amendments and also contains provisions to aid in traceability and accountability in the movement of goods, ITC and enforcement through defined penalties and procedural safeguards.
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