MADHYA PRADESH STHANIYA KSHETRA ME MAL KE PRAVESH PAR KAR ADHINIYAM, 1976

Act No. 52 of 1976

2-10-1976

An Act to levy a tax on the entry of goods into a local area in Madhya Pradesh for consumption, use or sale therein. Be it enacted by the Madhya Pradesh Legislature in the Twenty-seventh year of the Republic of India as follows :12 1. Received the assent of the Governor on 2-10-1976 and assent first published in M.P. Gazette (Extra-ordinary), dated 6-10-1976 at page 3083. 2. Substituted by Act No. 67 of 1976 (w.e.f. 1-9-1976).

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S.3A Entry Tax on Motor Vehicles

1[(1) There shall be levied an entry tax on the entry into any local area for consumption, use or sale therein,

• (i) of such motor vehicle which is liable for registration in the State of Madhya Pradesh under the Motor Vehicles Act, 1988; and
• (ii) by such person who is notifiable to pay tax under the provisions of sub-section (1) of Section 31 at such rate not exceeding 20 per cent, as the State Government may, by notification, specify :

Provided that no tax under this Section shall be levied if the motor vehicle has been purchased from a dealer registered under the 2[Madhya Pradesh VAT Act, 2002 (No. 20 of 2002)] :

Provided further that no tax under this section shall be levied in respect of a motor vehicle which was registered in any other State or Union Territory under the Motor Vehicles Act, 1988 for a period of 15 months or more before the date on which it is registered in the State under that Act.

(2) The

S.3B Special provision for collection of Entry Tax [***]

1[***]

2[Notwithstanding anything contained in this Act, the State Government may by notification, specify the manner and appoint the Competent Authority, to collect entry tax in respect of India made foreign liquor and 3[Beer and goods notified under sub-section (2) of Section 3] on such terms and conditions as may be specified therein.]

1. Omitted by M.P. Act No. 10 of 2010.

2. Inserted by M.P. Act No. 9 of 2007.

3. Substituted by M.P. Act No. 10 of 2010.

S.4 Rate at which entry tax to be charged

1[(1) The entry tax payable by a dealer under this Act shall be charged on his taxable quantum relating to goods specified in Schedule II and Schedule III at the rates mentioned in the said Schedules :

Provided that notwithstanding anything contained in this sub-section and subject to such conditions and restrictions as may be prescribed,

• (i) the entry tax payable in respect of goods specified in Schedule II 2[other than coal as specified in Serial No. 1 and iron and steel as specified in Serial No. 3 of Part I of the said Schedule] which are consumed or used as raw material for the manufacture of other goods shall be one per cent, if the rate of tax specified in Schedule II exceeds one per cent;
• (ii) where the dealer contravenes any of the conditions or restrictions or has not consumed or used the goods as raw material for the manufacture of other goods in any local area in Madhya Pradesh, he shall be liable to pay as entry tax an
  

S.4A Provision for entry tax at enhanced rate

1[2[1[(1) 3[Notwithstanding anything contrary contained in this Act, the State Government may, by notification, specify the local area or areas and the goods which are consumed or used in such local area or areas and may direct that, as from the date specified in the notification and in such manner as may be specified therein, the entry tax payable by a dealer under this Act shall be charged on the value of such goods at a rate not exceeding thirty percentum as may be specified in such notification :]

Provided that if the goods, are purchased from a registered dealer on which entry tax is payable or paid by the selling registered dealer, entry tax at a differential rate by which the rate notified under this section exceeds the rate specified in Schedule II, shall be charged.]

4[(2) On the issue of the notification under sub-section (1), entry tax shall not be chargeable and payable on such goods at any other rate

S.5 [Omitted]

1[***]

1. Omitted by Act No. 22 of 1977 (w.e.f. 2-5-1977).

S.6 Principles governing levy of entry tax on dealer or person

1[Notwithstanding anything contrary contained in this Act, the State Government may, by notification, specify the local area or areas and the goods which are consumed or used in such local area or areas and may direct that, as from the date specified in the notification and in such manner as may be specified therein, the entry tax payable by a dealer under this Act shall be charged on the value of such goods at a rate not exceeding thirty percentum as may be specified in such notification :]

The entry tax 2[payable by a dealer under sub-section (1) of Section 3 or by a person notified under sub-section (2) of that section] shall be levied in accordance with the principles stated below :

• (a) Entry tax shall not be payable unless 3[the dealer or such person] effects entry of goods specified in 4[Schedule II or Schedule III] into a local area;
• (b) Where any such goods are consumed, used or sold in a local area by
  

S.7A Composition

1[(1) Every registered dealer referred to in subsection (1) or sub-section (2) of Section 7 may compound the liabilities imposed on him by Section 7 subject to such terms and conditions as may be prescribed, on payment by way of composition money of a sum equal to the amount of entry tax liable to be paid on the entry of such goods into local areas other than the local area in relation to which they are local goods and such amount shall be estimated in such manner as may be prescribed.

(2) The composition money estimated under sub-section (1) shall be paid within such time and in such manner as may be prescribed.

(3) The names of the dealers along with such particulars as may be prescribed who opt for compounding their liability as provided in sub-section (1) (hereinafter referred to as the composition scheme) shall be published in such manner as may be prescribed. The names of the dealers together with the particulars as aforesaid who withdraw from the com

S.8 Penalty for failure to fulfil responsibility or obligation undertaken

Where any dealer issues a declaration under the provisions of this Act or the rules made thereunder or any notification issued under Section 10 wherein he has undertaken any specific responsibility or obligation in regard to any goods purchased by him after the issue of such declaration and he fails to fulfil such responsibility or obligation, such dealer shall be liable to pay a penalty equal to one and a half times the entry tax computed at the rates mentioned in 1[Schedule II or Schedule III] as the case may be, in respect of such goods :

Provided that, no penalty under this section shall be imposed if under any provision of this Act or the rules made thereunder the default of the dealer for his failure to discharge such responsibility or obligation can be subjected to the imposition of any tax or penalty.

1. Substituted by Act No. 36 of 1997 (w.e.f. 1-10-1997).

S.9 Amendment of Schedules II and III

1[(1) The State Government may, by notification, amend Schedule II and Schedule III and thereupon each of the said Schedules shall stand amended accordingly :

Provided that the rate of tax in respect of any goods specified therein shall not exceed twice the rate of tax specified in the Schedules.

(2) No notification enhancing the rate of tax, shall be issued under sub-section (1) without giving in the Gazette such previous notice as the State Government may consider reasonable, of its intention to issue such notification.

(3) Every notification issued under sub-section (1) shall, as soon as may be, after it is issued be laid on the table of the Legislative Assembly.]

1. Substituted by Act No. 36 of 1997 (w.e.f. 1-10-1997).

S.10 Power to exempt

1[The State Government may, by notification, and subject to such restrictions and conditions as may be specified therein, exempt, whether prospectively or retrospectively, in whole or in part:

• (i) any class of dealers or persons, or any goods or class of goods, from the payment of entry tax under this Act in respect of all or any of the local areas, for such period as may be specified in the notification;
• (ii) any dealer or class of dealers, from any provision of the Act as may specified in the notification :

Provided that in respect to the period during which the Ordinance, repealed under Section 24 was in force, the retrospective effect may be given from the date of the commencement of the said Ordinance as if the liability to pay tax arose under this Act and for that purpose it shall and shall always be deemed that the provisions of this Act to the extent they correspond to the provisions of the said Ordinance were in force during t

S.11 Burden of proof

(1) The burden of proving

• (a) that 1[a dealer or a person notified under sub-section (2) of Section 3 has not effected the entry of any goods specified in Schedule II] into a local area for consumption, use or sale therein;
• 2[(b) that a dealer has not effected the entry of any goods specified in Schedule III or a person notified under sub-section (2) of Section 3 has not effected the entry of any goods specified in Schedule III and notified under sub-section (2) of Section 3 into a local area for consumption or use therein;
• (c) that a dealer is entitled to deduction in respect of purchase value of local goods for the purpose of the computation of taxable purchase value;]
• (d) that goods purchased by a dealer in a local area from a person or a dealer who is not a registered dealer had not entered into that local area before they were purchased by him;
• (e) that a dealer is entitled to any other deductions in comput
  

S.12 Rate at which entry tax to be charged on goods under Section 3(2)

1[(1) The entry tax payable under sub-section (2) of Section 3 shall be levied on the value of goods notified thereunder at such rate, not exceeding 20 per cent, as the State Government may, by notification, specify, and different rates may be specified for different goods. The entry tax shall be assessed and collected by such authority and in such manner as may be prescribed.

(2) Appeal or revision against the order of the Assessing Authority under sub-section (1) shall lie to such authority, within such period and in such manner as may be prescribed.

(3) The Assessing Authority, the Appellate Authority and the Revising Authority shall, for the purposes of this section, have the same powers as are exercisable by those authorities under this Act in respect of a dealer and the provisions of this Act relating to assessment, appeal and revision of a dealer shall apply in respect of a person to whom sub-section (1) applies.]

1. Substituted by Act No.

S.13 Certain provision of M.P. Value Added Tax Act to apply

1[Subject to the provisions of this Act and the rules made thereunder, Sections 3, 4, 12, 18, 19, 20, 20-A, 21, 22, 23, 24, 25, 28, 29, 30, 31, 32, 33, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 2[55, 55-A], 56, 57, 58, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70 and 71 of the M.P. Value Added Tax Act and the rules made and orders and notifications issued thereunder shall mutatis mutandis apply to a dealer or person in respect of the entry tax, interest or penalty levied and payable under this Act as if these sections were mutatis mutandis incorporated in this Act and it shall be deemed that the rules made and orders and notifications issued under those sections were mutatis mutandis made or issued under the relevant sections as so incorporated in this Act.]

1. Substituted by Act No. 23 of 2006 (w.e.f. 1-4-2006).

2. Substituted by Act No. 10 of 201C (w.e.f. 1-4-2010).

S.14 Assessment, collection etc. of entry tax

Subject to the provisions of this Act and the rules made thereunder, the administration of this Act in so far as it relates to levy, assessment and collection of entry tax from dealers shall vest in the authorities specified in Section 3 of the 1[Madhya Pradesh VAT Act, 2002 (No. 20 of 2002)], and accordingly the authorities for the time being empowered to assess, re-assess, collect and enforce payment of any tax under the 1[Madhya Pradesh VAT Act, 2002 (No. 20 of 2002)] shall assess, re-assess, collect and enforce the payment of entry tax including any penalty payable by a dealer under this Act as if the tax or penalty payable by such dealer under this Act or under the provisions of the 1[Madhya Pradesh VAT Act, 2002 (No 20 of 2002)] as made applicable under Section 13 to dealers in relation to tax levied under this Act is a tax or penalty payable under that Act and for this purpose they may exercise all or any of the powers conferred upon them by

S.15 [Omitted]

1[***].

1. Omitted by Act No. 22 of 1977 (w.e.f. 1-5-1977).

S.16 [Omitted]

1[***].

1. Omitted by Act No. 22 of 1977 (w.e.f. 1-5-1977).

S.17 [Omitted]

1[***].

1 Omitted by Act No. 24 of 1978 (w.e.f. 1-10-1978).

S.18 Finality of orders

Save as otherwise expressly provided in this Act every order made by an Assessing Authority, Appellate Authority or a Revising Authority under this Act shall be final and shall not be called in question in any original suit, application or execution or proceeding and no injunction shall be granted by any Court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or in respect of any recovery to be made as an arrear of land revenue.

S.19 [Omitted]

1[***]

1. Omitted by Act No. 22 of 1997 (w.e.f. 1-5-1997).

S.20 Power to make rules

(1) The State Government may make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, the State Government may make rules prescribing

• 1[(a) [***];
• 2[(b) the manner in which set off shall be adjusted under the first proviso to sub-section (1) of Section 3;]
• 3[(c) (i) the conditions and restrictions under the first proviso to sub-section (1) of Section 4; (ii) the restrictions and conditions subject to which a registered dealer shall be entitled to set off or refund under the second proviso to sub-section (1) of Section 4 and the proportion in which he shall be entitled thereto;]
• 1[(d) ***]
• 4[(e) the manner in which details shall be specified under sub-section (1) of Section 7;]
• 2[(ee) (i) the terms and conditions on which the registered dealer may compound the liability and the ma
  

S.21 Transitory provisions

Notwithstanding anything contained in this Act where entry of any goods specified in 1[Schedule II or Schedule III] of this Act had been effected by a dealer into a local area before the 1st day of May, 1976 and such dealer had paid the tax levied by the concerned local authority under the law relating to local authority on the entry of such goods into a local area for consumption, use or sale therein, then such dealer shall not be liable to tax under this Act in respect of the consumption, use or sale of such goods in that local area on or after such date and accordingly in computing the taxable quantum of the dealer who had paid such tax a deduction shall be given in respect of the value of such goods :

Provided that nothing in this section shall apply unless the dealer furnishes a declaration in such form and to such authority as may be prescribed ' within three months from the date of commencement of this Act.

1. Substituted by Act No. 36 of 1997 (w

S.22 Section 10 of Madhya Pradesh Act 3 of 1958 to apply

The provisions of Section 10 of the Madhya Pradesh General Clauses Act, 1957 (No. 3 of 1958) shall apply in relation to matters pending on the 1st day of May, 1976 with respect to octroi tax levied by a local authority under the law relating to local authority prior to the said date as it would have applied had the relevant provisions of the law relating to local authority been repealed by this Act.

S.23 Removal of difficulty

If any difficulty arises in giving effect to the provisions of this Act in consequence of the transition to the said provisions from the corresponding provisions contained in any law relating to local authorities, the State Government may, by an order notified in "Gazette" make such provisions not inconsistent with this Act as appear to be necessary or expedient for removing the difficulty :

Provided that no order shall be made under this section after the expiry of a period of 1[two years] from the 1st day of May, 1976.

1. Substituted by Act No. 22 of 1977 (w.e.f. 1-5-1977).

S.24 Repeal

As from the date specified in sub-section (2) of Section 1, the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhyadesh, 1976 (No. 6 of 1976) shall stand repealed.

S.Chapter I PRELIMINARY

S.1 Short title, extent and commencement

(1) This Act may be called the Madhya Pradesh Goods and Services Tax Act, 2017.

(2) It extends to the whole of the Madhya Pradesh.

(3) It shall come into force on such date as the State Government may, by notification in the official 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.

S.2 Definitions

In this Act, unless the context otherwise requires,--

• (1) "actionable claim" shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882);
• (2) "address of delivery" means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both;
• (3) "address on record" means the address of the recipient as available in the records of the supplier;
• (4) "adjudicating authority" means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Commissioner, Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;
• (5) "agent" means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, b
  

S.Chapter II ADMINISTRATION

S.3 Officers under this Act

The Government shall, by notification, appoint the following classes of officers for the purposes of this Act, namely:--

• (a) Commissioner of State tax,
• (b) Special Commissioners of State tax,
• (c) Additional Commissioners of State tax,
• (d) Joint Commissioners of State tax,
• (e) Deputy Commissioners of State tax,
• (f) Assistant Commissioners of State tax, and
• (g) any other class of officers as it may deem fit:

Provided that, the officers appointed under the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002) shall be deemed to be the officers appointed under the provisions of this Act.

S.Chapter III LEVY AND COLLECTION OF TAX

S.7 Scope of supply

(1) For the purposes of this Act, the expression "supply" includes--

• (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
• (b) import of services for a consideration whether or not in the course or furtherance of business;
• (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and
• (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.

(2) Notwithstanding anything contained in sub-section (1),--

• (a) activities or transactions specified in Schedule III; or
• (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Gove