The Andhra Pradesh Goods and Services Tax (Amendment) Act, 2018.
OCTOBER 23, 2018] ANDHRA PRADESH GAZETTE EXTRAORDINARY 1

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## THE ANDHRA PRADESH GAZETTE

### PART IV-B EXTRAORDINARY
 PUBLISHED BY AUTHORITY

**No. 23** **AMARAVATI, TUESDAY,  23[rd] OCTOBER,  2018.**

#### ANDHRA PRADESH ACTS, ORDINANCES AND
 REGULATIONS Etc.,

The following Act of the Andhra Pradesh Legislature received the  assent of the

Governor on the 19[th] October, 2018 and the said assent is hereby first published on the
23[rd] October, 2018 in the Andhra Pradesh Gazette for general information :
#### ACT No. 23 of 2018

**AN ACT TO AMEND THE ANDHRA PRADESH GOODS AND**

**SERVICES TAX ACT, 2017.**

Be it enacted by the Legislature of the State of Andhra Pradesh in the

Sixty-ninth Year of the Republic of India as follows:—


**1.** (1) This Act may be called the Andhra Pradesh Goods and Services

Tax (Amendment) Act, 2018.

(2) Save as otherwise provided, the provisions of this Act shall come

into force on such date as the Government may, by notification in the Andhra
Pradesh 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.** In section 2 of the Andhra Pradesh Goods and Services Tax Act, 2017

(hereinafter referred to as the principal Act),
_(a) in clause (4), for the words “the Appellate Authority and the_

Appellate Tribunal[”], the expression, [“]the Appellate Authority, the

322/18 J F1 **[1]**


Short title and

Commencement.

Amendment of

Section 2.

Act No. 16 of 2017.


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2 ANDHRA PRADESH GAZETTE EXTRAORDINARY [PART IV B

Appellate Tribunal and the Authority referred to in sub-section (2) of
section 171" shall be substituted;

_(b) in clause (16), for the words “central board of excise and_

customs”, the words, “Central Board of Indirect taxes and customs”
shall be substituted.

_(c) in clause (17), for sub-clause (h), the following sub-clause_

shall be substituted, namely:
_“(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;”

_(d) clause (18) shall be omitted;_

_(e) in clause (35), for the expression, “clause (c)”, the_

expression “clause (b)” shall be substituted;

_(f) in clause (69), in sub-clause (f), after the expression “article_

371”, the expression “and article 371 J” shall be inserted;

_(g) in clause (102), the following Explanation shall be inserted,_

namely:
‘Explanation.—For the removal of doubts, it is hereby clarified

that the expression “services” includes facilitating or arranging
transactions in securities;’.


Amendment of
Section 7.


**3.** In section 7 of the principal Act, with effect from the 1st day of July,

2017.
(a) in sub-section (1).
(i) in clause (b), after the words “or furtherance of business;”, the word

“and” shall be inserted and shall always be deemed to have been inserted;

(ii) in clause (c), after the words “a consideration”, the word “and” shall

be omitted and shall always be deemed to have been omitted:

(iii) clause (d) shall be omitted and shall always be deemed to have

been omitted;

(b) after sub-section (1), the following sub-section shall be inserted,

and shall always be deemed to have been inserted, namely:—


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OCTOBER 23, 2018] ANDHRA PRADESH GAZETTE EXTRAORDINARY 3

_“(IA) 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.”;

(c) in sub-section (3), for the expression “sub-sections (1) and (2)”,

the expression “sub-sections (1), (1A) and (2)” shall be substituted.


**4.** In section 9 of the principal Act, for sub-section (4), the following sub
section shall be substituted, namely:—

_(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
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.”.

**5.** In section 10 of the principal Act.—

_(a) in sub-section (1) —_

(i) for the words “in lieu of the tax payable by him, an amount
calculated at such rate”, the expression “in lieu of the tax payable
by him under sub-section (1) of section 9, an amount of tax
calculated at such rate” shall be substituted;

(ii) in the proviso, for the words “one crore rupees”, the words “one
crore and fifty lakh rupees” shall be substituted;

(iii) after the proviso, the following proviso shall be added, namely:—

“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.”;

_(b) in sub-section (2), for clause (a), the following clause shall be_

substituted, namely:—

_“(a) save as provided in sub-section (1), he is not engaged in the supply_

of services;”.


Amendment of

Section 9.

Amendment of

Section 10.


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4 ANDHRA PRADESH GAZETTE EXTRAORDINARY [PART IV B


Amendment of
Section 12.

Amendment of
Section 13.

Amendment of
Section 16.

Amendment of
Section 17.


**6.** In section 12 of the principal Act, in sub-section (2), in clause (a), the

expression “sub­section (1) of” shall be omitted.

**7.** In section 13 of the principal Act, in sub-section (2), in clauses (a)

and (b),the expression “sub-section (2) of” occurring at both the places,
shall be omitted.

**8.** In section 16 of the principal Act. in sub-section (2),—

_(a) in clause (b), for the Explanation, the following Explanation_

shall be substituted, namely:—

“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.”;

_(b) in clause (c), for the expression “section 41”, the_

expression “section 41 or section 43A” shall be substituted.

**9.** In section 17 of the principal Act,—

_(a)_ in sub-section (3), the following Explanation shall be inserted,

namely:—

‘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 those specified in paragraph
5 of the said Schedule.’;

(b) in sub-section (5), for clauses (a) and (b), the following clauses

shall be substituted, namely:—

“(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;


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OCTOBER 23, 2018] ANDHRA PRADESH GAZETTE EXTRAORDINARY 5

(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) service of general insurance,servicing,repair and maintenance inso
far as they relate to motor vehicles, 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:


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6 ANDHRA PRADESH GAZETTE EXTRAORDINARY [PART IV B

Provided that the input tax credit in respect of such goods or services

or both shall be available, where it is obligatory for an employer to provide
the same to its employees under any law for the time being in force.”.


Amendment of
Section 20.

Amendment of
Section 22.

Amendment of
Section 24.

Amendment of
Section 25.

Central Act No 28 of
2005.


**10. In section 20 of the principal Act, in the Explanation, in clause (c), for**
the expression “under entry 84,”, the expression “under entries 84 and
92A” shall be substituted.

**11. In section 22 of the principal Act,—**

(a) in sub-section (1), after the proviso, the following proviso shall be

added, namely:
“Provided further that the Government may, at the request of a special

category State and on the recommendations of the Council, enhance the
aggregate turnover referred to in the first proviso from ten lakh rupees to
such amount, not exceeding twenty lakh rupees and subject to such conditions
and limitations, as may be so notified.”;

_(b) in the Explanation, in clause (iii). after the words “constitution of_

India”, the words “except the State of Jammu and Kashmir and States ofArunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and
Uttarakhand” shall be inserted.”.

**12. In section 24 of the principal Act, in clause (x), after the words “commerce**
operator”, the expression “who is required to collect tax at source under
section 52” shall be inserted.

**13. In section 25 of the principal Act,—**

_(a) in sub-section (1), after the proviso and before the Explanation,_

the following proviso shall be inserted, namely:—

‘‘Provided further that a person having a unit, as defined in the Special

Economic Zones Act, 2005, in a Special Economic Zone or being a Special
Economic Zone developer shall have to apply for a separate registration, as
distinct from his place of business located outside the Special Economic
Zone in the same State.”;

_(b) in sub-section (2), for the proviso, the following proviso shall be_

substituted, namely:—


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OCTOBER 23, 2018] ANDHRA PRADESH GAZETTE EXTRAORDINARY 7

“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.”.


**14.** In section 29 of the principal Act,—

(a) in the marginal heading after the word “Cancellation”, the words
“or suspension” shall be inserted;

(b) in sub-section (1), after clause (c), the following proviso shall be
inserted, namely:—

“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.”;

(c) in sub-section (2), after the proviso, the following proviso shall be
inserted, namely:—

“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.”.

15. In section 34 of the principal Act,—

_(a)_ in sub-section (1),—

(i) for the words “Where a tax invoice has”, the words “Where one or
more tax invoices have” shall be substituted;

_(ii)_ for the words “a credit note”, the words “one or more credit notes
for supplies made in a financial year” shall be substituted;

_(b)_ in sub-section (3),—

(i) for the words “Where a tax invoice has”, the words “Where one or

more tax invoices have” shall be substituted;

(ii) for the words “a debit note”, the words “one or more debit notes for

supplies made in a financial year” shall be substituted.


Amendment of

Section 29.

Amendment of

Section 34.


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8 ANDHRA PRADESH GAZETTE EXTRAORDINARY [PART IV B


Amendment of
Section 35.

Amendment of
Section 39.


**16.** In section 35 of the principal Act, in sub-section (5), the following

proviso shall be inserted, namely;—

“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.”.

**17. In section 39 of the principal Act,—**

(a) in sub-section (1),—

(i) for the words “in such form and manner as may be prescribed”,
the words “in such form, manner and within such time as may be
prescribed” shall be substituted;

(ii) the words “on or before the twentieth day of the month succeeding
such calendar month or part thereof” shall be omitted;

(iii) the following proviso shall be inserted, namely:—

“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.”;

(b) in sub-section (7), the following proviso shall be inserted,
namely:—

“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 specified therein.”;

(c) in sub-section (9),—

(i) for the words “in the return to be furnished for the month or quarter
during which such omission or incorrect particulars are noticed”,
the words “in such form and manner as may be prescribed” shall
be substituted.

(ii) in the proviso, for the words “the end of the financial year”, the
words “the end of the financial year to which such details pertain”
shall be substituted.


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OCTOBER 23, 2018] ANDHRA PRADESH GAZETTE EXTRAORDINARY 9


**18.** After section 43 of the principal Act, the following section shall be inserted,

namely:—

“43A. (i) 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 or 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 sub­section (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 suppliers
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;


Insertion of new
section 43A.

Procedure for

furnishing return

and availing input

tax credit.


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10 ANDHRA PRADESH GAZETTE EXTRAORDINARY [PART IV B

_(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.”.


Amendment of
section 48.

Amendment of
section 49.

Insertion of new
sections 49A and
49B.

Utilisation of input
tax credit subject to
certain conditions.

Order of utillisation
of input tax credit.


**19.** In section 48 of the principal Act, in sub-section (2), after the expression ‘’section

45", the words “and to perform such other functions” shall be inserted.

**20.** In section 49 of the principal Act,—

_(a) in sub-section (2), for the expression “section 41”, the_

expression “section 41 or section 43 A” shall be substituted;

_(b) in sub-section (5),—_

(i) in clause (c), the following proviso shall be inserted, namely:—

“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;”;

_(ii) in clause (d), the following proviso shall be inserted,_

namely:—

“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;”.

**21.** After section 49 of the principal Act, the following sections shall be inserted,

namely:—

“49A. 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. 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 as the case may be,
towards payment of any such tax.”


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OCTOBER 23, 2018] ANDHRA PRADESH GAZETTE EXTRAORDINARY 11


**22.** In section 52 of the principal Act, in sub-section (9), for the expression “section

37”the expression “section 37 or section 39” shall be substituted.

**23.** In section 54 of the principal Act,—

(a) in sub-section (8), in clause (a), for the words “zero-rated

supplies”, the words “export” and “exports” shall respectively be
substituted;

(b) in sub-section (14),in the Explanation, in clause (2),—

(i) in sub-clause (c), in item (i), after the words “foreign

exchange”, the words “or in Indian rupees wherever
permitted by the Reserve Bank of India” shall be inserted;

(ii) for sub-clause (e), the following sub-clause shall be

substituted, namely:—

“(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;”.

**24.** In section 79 of the principal Act, after sub-section (4), the following

_Explanation shall be inserted, namely:—_

_‘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.’

**25.** In section 107 of the principal Act, in sub-section (6), in clause (b),

after the words “arising from the said order,”, the words “subject to a maximum
of twenty-five crore rupees,” shall be inserted.

**26.** In section 112 of the principal Act, in sub-section (8), in clause (b),

after the words “arising from the said order,” the words “subject to a maximum
of fifty crore rupees,” shall be inserted.

**27.** In section 129 of the principal Act, in sub-section (6), for the words

“seven days”, the words “fourteen days” shall be substituted.

**28.** In section 143 of the principal Act, in sub-section (1), in clause (b),

after the proviso, the following proviso shall be inserted, namely:—

“Provided further that the period of one year and three years may, on sufficient
cause being shown, be extended by the Chief Commissioner for a further period
not exceeding one year and two years respectively.”.


Amendment

of section 52.

Amendment

of section 54.

Amendment
of section 79.

Amendment of
section 107.

Amendment of

section 112.

Amendment of
section 129.

Amendment of
section 143.


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12 ANDHRA PRADESH GAZETTE EXTRAORDINARY [PART IV B


Amendment of

Schedule I.

Amendment of

Schedule II.

Amendment of

Schedule III.

Central ActNo.52of

1962.


**29.   In Schedule I of the principal Act, in paragraph 4, the word “taxable “, shall**
be omitted.

**30. In Schedule II of the principal Act, in the heading, after the word**
“ACTIVITIES”, the words “OR TRANSACTIONS” shall be inserted and shall
always be deemed to have been inserted with effect from the 1st day of July,
2017.

**31. In Schedule III of the principal Act, —**

(i) after paragraph 6, the following paragraphs shall be inserted,

namely:—

“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.”;

(ii) the existing Explanation shall be numbered as Explanation 1

and after Explanation 1 as so numbered, the following Explanation
shall be added, namely:—

_‘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.’

**DUPPALA VENKATA RAMANA,**

_Secretary to Government,_

_Legal and Legislative Affairs and Justice,_

_Law Department._


Printed by the Commissioner of Printing, at A.P. Legislative Assembly Printing Press, Amaravati.


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