The Rajasthan Finance Act, 2024

Act No. 7 of 2024

24th August 2024

An Act further to amend the Rajasthan Stamp Act, 1998, the Rajasthan Electricity (Duty) Act, 1962, the Rajasthan Goods And Services Tax Act, 2017 and the Rajasthan Value Added Tax Act, 2003 in order to give effect to the financial proposals of the State Government for financial year 2024-25.

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S.Chapter I PRELIMINARY

S.1 Short title

This Act may be called the Rajasthan Finance Act, 2024.

S.2 Declaration under section 3, Rajasthan Act No. 23 of 1958

In pursuance of section 3 of the Rajasthan Provisional Collection of Taxes Act, 1958 (Act No. 23 of 1958) it is hereby declared that it is expedient in the public interest that provisions of clauses 4, 6, 7, 10, 14, 15, 16, 17 and 18 of this Bill shall have immediate effect under the said Act.

S.Chapter II AMENDMENT IN THE RAJASTHAN STAMP ACT, 1998

S.3 Amendment of section 2, Rajasthan Act No. 14 of 1999

In section 2 of the Rajasthan Stamp Act, 1998 (Act No. 14 of 1999), hereinafter in this Chapter referred to as the principal Act, for the existing clause (xxxvi), the following shall be substituted, namely:-

"(xxxvi) "Stamp" means any mark, seal or endorsement made electronically or otherwise by any agency or person duly authorised by the State Government, and includes an adhesive or impressed stamp, for the purpose of duty chargeable under this Act;".

S.4 Amendment of section 3, Rajasthan Act No. 14 of 1999

In section 3 of the principal Act, for the existing provision, the following shall be substituted, namely:-

"(1) Subject to the provisions of this Act and the exemptions contained in the Schedule, the following instruments shall be chargeable with duty of the amount indicated in the Schedule as the proper duty therefore respectively, that is to say,-

• (a) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed in the State on or after the date of commencment of this Act;
• (b) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed out of the State on or after the said date, relates to any matter or thing done or to be done in the State and is received in the State, or related to any property situate in the State.

(2) Notwithstanding anything contained in this Act, in case the insured person resides in the State of Rajasthan o

S.5 Amendment of section 30, Rajasthan Act No. 14 of 1999

In section 30 of the principal Act, for the existing sub-section (2) the following shall be substituted, namely:-

"(2) Without prejudice to the generality of sub-section (1), in the case of instruments relating to immovable property, the market value of which is required to be determined for the purpose of calculating the Stamp duty, the instrument shall fully and truly set forth all the particulars which may be prescribed by rules made under this Act.".

S.6 Amendment of section 39, Rajasthan Act No. 14 of 1999

In sub-clause (ii) of clause (a) of the proviso to section 39 of the principal Act, the existing expression "or twenty five percent of the deficient stamp duty, whichever is higher," shall be deleted.

S.7 Amendment of section 44, Rajasthan Act No. 14 of 1999

In sub-clause (ii) of clause (b) of sub-section (1) of the section 44 of the principal Act, the existing expression "or twenty five percent of the deficient stamp duty, whichever is higher," shall be deleted.

S.8 Amendment of section 52-B, Rajasthan Act No. 14 of 1999

In sub-section (1) of section 52-B of the principal Act, the existing expression "either erroneous or" shall be deleted.

S.9 Amendment of section 58, Rajasthan Act No. 14 of 1999

In clause (d) of section 58 of the principal Act, for the existing expression "the stamp used for an instrument executed by any party thereto", the expression "the stamp used for an instrument executed by any party or parties thereto" shall be substituted.

S.10 Amendment of Schedule, Rajasthan Act No. 14 of 1999

In the Schedule of the principal Act,-

• (i) in Article 1,-
  • (a) for the existing expression "a debt exceeding twenty rupees", appearing under Column No. 1, the expression "a debt exceeding ten thousand rupees" shall be substituted;
  • (b) for the existing expression "Ten rupees", appearing under Column No. 2, the expression "Five hundred rupees" shall be substituted;
• (ii) in Article 2, for the existing expression "Two percent of the value of the bond" appearing under Column No. 2, the expression "Five hundred rupees" shall be substituted;
• (iii) in Article 5,-
  • (a) in clause (a), for the existing expression "Ten rupees" appearing under Column No. 2 the expression "Zero" shall be substitued;
  • (b) in clause (b), for the existing expression "Subject to a maximum of two hundred rupees, ten rupees for every Rs. 10,000/- or part thereof, of the value of the security or share." appearing under C
    

S.Chapter III AMENDMENT IN THE RAJASTHAN ELECTRICITY (DUTY) ACT, 1962

S.Chapter IV AMENDMENT IN THE RAJASTHAN GOODS AND SERVICES TAX ACT, 2017

S.Chapter V AMENDMENT IN THE RAJASTHAN VALUE ADDED TAX ACT, 2003

S.11 Insertion of new section 8B, Rajasthan Act No. 12 of 1962

After the existing Section 8A and before the existing section 9 of the Rajasthan Electricity (Duty) Act, 1962 (Act No.12 of 1962), the following new section 8B shall be inserted, namely:-

"8B. Rebate on electricity duty in certain cases.- Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is expedient in the public interest so to do, it may, by notification in the Official Gazette, and subject to such conditions as may be specified therein, allow, whether prospectively or retrospectively, a rebate upto the full amount of electricity duty to such consumers as may be specified in the notification.".

S.12 Amendment of section 2, Rajasthan Act No. 9 of 2017

For the existing clause (61) of section 2 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), hereinafter referred to as the principal Act, the following 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;''.

S.13 Amendment of section 20, Rajasthan Act No. 9 of 2017

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

"20. Manner of distribution of credit by Input Service Distributor.- (1) 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 I

S.14 Insertion of new section 122A, Rajasthan Act No. 9 of 2017

After the existing section 122 and before the existing section 123 of the principal Act, the following new section shall be inserted, namely:––

''122A. Penalty for failure to register certain machines used in manufacture of goods as per special procedure.- (1) 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 (1), every machine not so registered shall be liable for seizure and confiscation:

Provided that such machine shall not be confiscated where––

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S.15 Amendment of section 3, Rajasthan Act No. 4 of 2003

In section 3 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), hereinafter in this Chapter referred to as the principal Act, for the existing sub-section (2), the following shall be substituted, namely:-

"(2) Notwithstanding anything contained in sub-section (1) a dealer other than those specified in clause (a) of sub-section (1) or the dealer or class of dealers as may be notified by the State Government, who purchases goods from a registered dealer of the State and sells, such goods or goods manufactured from such goods within the State, may opt for payment of tax on his turnover, at the rate as may be notified under sub-section (3) of section 4, subject to the condition that annual turnover of such dealer does not exceed-

• (i) rupees fifty lacs, in case of a dealer specified in clause (b) of sub section (1); and
• (ii) rupees seventy five lacs, in case of other dealers.".

S.16 Amendment of section 4, Rajasthan Act No. 4 of 2003

In section 4 of the principal Act,-

• (i) in sub-section (1), for the existing expression “and shall be levied on the taxable turnover of sale of goods specified in Schedule III to Schedule VI at the rate mentioned against each of such goods in the said Schedules”, the expression “and shall be levied on the taxable turnover of sale of goods specified in Schedule I at the rate mentioned against each of such goods in the said Schedule” shall be substituted.;
• (ii) in sub-section (2), for the existing expression “in Schedule-III to Schedule VI of the Act”, the expression “in Schedule I of the Act” shall be substituted;
• (iii) in sub-section (5), for the existing words “Schedules" and "Schedule”, the expression “Schedule I” shall be substituted.

S.17 Amendment of section 8, Rajasthan Act No. 4 of 2003

In section 8 of the principal Act,-

• (i) for the existing sub-section (1), the following shall be substituted, namely:-
• “(1) Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette, exempt fully or partially, whether prospectively or retrospectively from tax the sale or purchase of any goods, without any condition or with such condition as may be specified in the notification.”;
• (ii) The existing sub-section (2) shall be deleted.

S.18 Amendment of Schedules, the Rajasthan Act No. 4 of 2003

For the existing Schedules I, II, III, IV, V and VI and entries thereto, if any, of the principal Act, the following Schedules and entries thereto shall be substituted, namely:-