Trusted Counsel in GST, Customs & Allied Laws

(1) This Act may be called the Central Goods and Services Tax Act, 2017. (2) It extends to the whole of India except the State of Jammu and Kashmir [Omitted by CGST (Extension to Jammu and Kashmir) Act, 2017 — now extends to whole of India]. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

In this Act, unless the context otherwise requires,— (1) "actionable claim" shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882; (4) "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; (6) "address on record" means the address of the recipient as available in the records of the supplier; (7) "adjudicating authority" means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Central Board of Indirect Taxes and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171; (10) "agent" means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another; (11) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of a person having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; (13) "Appellate Authority" means an authority appointed under section 2 of the CGST Act; (16) "appointed day" means the date on which the provisions of this Act shall come into force; (17) "assessment" means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgement assessment; (18) "associated enterprises" shall have the meaning assigned to it in section 92A of the Income-tax Act, 1961; (24) "capital goods" means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business; (26) "casual taxable person" means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business; (31) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; (35) "consideration" in relation to the supply of goods or services or both includes— (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person; but shall not include any subsidy given by the Central Government or a State Government; (43) "electronic commerce operator" means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce; (45) "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; (47) "fixed establishment" means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs; (52) "goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply; (53) "Government" means the Central Government; (56) "input" means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business; (57) "input service" means any service used or intended to be used by a supplier in the course or furtherance of business; (62) "input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him; (63) "input tax credit" means the credit of input tax; (69) "local authority" means— (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (b) a "Municipality" as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zila Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (74) "mixed supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply; (76) "non-resident taxable person" means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India; (84) "person" includes— (a) an individual; (b) a Hindu Undivided Family; (c) a company; (d) a firm; (e) a Limited Liability Partnership; (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India; (g) any corporation established by or under any Central Act, Provincial Act or a State Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013; (h) any body corporate incorporated by or under the laws of a country outside India; (i) a co-operative society registered under any law relating to co-operative societies; (j) a local authority; (k) Central Government or a State Government; (l) society as defined under the Societies Registration Act, 1860; (m) trust; and (n) every artificial juridical person, not falling within any of the above; (85) "place of business" includes— (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or (b) a place where a taxable person maintains his books of account; or (c) a place where a taxable person is engaged in business through an agent, by whatever name called; (102) "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; (105) "supplier" in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; (107) "taxable person" means a person who is registered or liable to be registered under section 22 or section 24; (108) "taxable supply" means a supply of goods or services or both which is leviable to tax under this Act; (109) "taxable territory" means the territory to which the provisions of this Act apply; (112) "turnover in State" or "turnover in Union territory" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess; (113) "Union territory" means the territory of— (a) the Andaman and Nicobar Islands; (b) Lakshadweep; (c) Dadra and Nagar Haveli and Daman and Diu; (d) Chandigarh; and (e) other territory. Explanation.— For the purposes of this Act, each of the zones of the Special Economic Zone shall be treated as a distinct person. (116) "voucher" means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument; (119) "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.

(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, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. Explanation — For the purposes of this clause, it is immaterial whether the person and its members or constituents are distinct persons or not; (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. (1A) 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. (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 Central Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1), (1A) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as— (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods.

(1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. (2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. (3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such 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 the supply of such goods or services or both. (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. (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services.

(1) Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees [as amended, now ₹1.5 crore for goods, ₹50 lakh for services], may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not less than,— (a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer; (b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II; (c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers. The composition scheme is not available for: suppliers of services (other than restaurant services), interstate suppliers, e-commerce operators, and suppliers of non-taxable goods. (2) The registered person shall pay tax under sub-section (1), if— (a) except if he is a person referred to in clause (b) of paragraph 6 of Schedule II, he is not engaged in the supply of services; (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; (c) he is not engaged in making any inter-State outward supplies of goods; (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council.

(1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification. (2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable. (3) The Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an Explanation in such notification or order, as the case may be, by notification in the Official Gazette at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such Explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be. (4) Any notification issued by the Government on the recommendation of the Council under sub-section (1) of section 11 of the CGST Act shall also apply to the respective State Governments.

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,— (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (aa) the details of the invoice or debit note referred to in clause (a) have been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37; (b) he has received the goods or services or both. 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; (ba) the details of input tax credit in respect of the said supply communicated to such registered person under section 38 has not been restricted; (c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and (d) he has furnished the return under section 39. (3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed. (4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier. (5) Notwithstanding anything contained in sub-section (1), input tax credit shall not be available in respect of supplies on which section 9 sub-section (5) applies.

(1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. (3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. (4) A banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of sub-section (2), or avail of, every month, an amount equal to fifty per cent. of the eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse: Provided that the option once exercised shall not be withdrawn during the remaining part of the financial year: Provided further that the restriction of fifty per cent. shall not apply to the tax paid on supplies made by one registered person to another registered person having the same Permanent Account Number. (5) Notwithstanding anything contained in sub-section (1) of section 16, input tax credit shall not be available in respect of the following, 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; (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) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa); (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 referred to in clause (a) except when used for the purposes specified therein, life insurance and health insurance; (ii) membership of a club, health and fitness centre; (iii) travel benefits extended to employees on vacation such as leave or home travel concession; (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service; (d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business; (e) goods or services or both on which tax has been paid under section 10; (f) goods or services or both received by a non-resident taxable person except on goods imported by him; (g) goods or services or both used for personal consumption; (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid in accordance with the provisions of sections 74, 129 and 130.

A registered person who has applied for registration within thirty days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. A registered person who takes registration under sub-section (3) of section 25 shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. Where any registered person ceases to pay tax under section 10, he shall be entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the day immediately preceding the date from which he becomes liable to pay tax under section 9. Where an exempt supply of goods or services or both by a registered person becomes a taxable supply, such person shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable. The credit shall be taken subject to conditions and restrictions prescribed under Rules 40 and 41 of the CGST Rules, 2017.

(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees [₹40 lakh for goods-only suppliers]: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. (2) Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day. (3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession. (4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.

Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act, namely:— (i) persons making any inter-State taxable supply; (ii) casual taxable persons making taxable supply; (iii) persons who are required to pay tax under reverse charge; (iv) person who are required to pay tax under sub-section (5) of section 9; (v) non-resident taxable persons making taxable supply; (vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act; (vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise; (viii) Input Service Distributor, whether or not separately registered under this Act; (ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52; (x) every electronic commerce operator who is required to collect tax at source under section 52; (xi) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and (xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.

(1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act. (2) The proper officer shall issue the notice under sub-section (1) at least three months prior to the time limit specified in sub-section (10) for issuance of order. (9) The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an order. (10) The proper officer shall issue the order under sub-section (9) within three years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within three years from the date of erroneous refund. (11) Notwithstanding anything contained in sub-section (6) or sub-section (7), where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50 before service of notice, no penalty shall be payable and all proceedings in respect of the said tax shall be deemed to be concluded.

(1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice. (2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order. (5) Where such notice is issued under sub-section (1), the penalty equivalent to fifteen per cent. of the tax involved shall be payable. (10) The proper officer shall issue the order under sub-section (9) within five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous refund.

(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person. (2) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or the Commissioner of Union territory tax, call for and examine the record of any proceeding in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order. (6) Every appeal under this section shall be filed within three months from the date on which the decision or order sought to be appealed against is communicated to the appellant. Pre-deposit: The appellant is required to pay admitted taxes and 10% of the disputed tax amount as pre-deposit before filing appeal [Section 107(6) proviso].

(1) Any person aggrieved by an order passed against him under section 107 or section 108 may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the appellant. Pre-deposit for tribunal appeal: Admitted taxes plus 20% of disputed tax amount or ₹25 crore, whichever is lower. Appeals to the GST Appellate Tribunal (GSTAT) — constituted under section 109 — are filed before the State/Area Bench having jurisdiction over the place of business of the appellant.

(1) Any person aggrieved by any order passed by the State Bench or Area Benches of the Appellate Tribunal may file an appeal to the High Court and the High Court may admit such appeal if it involves a substantial question of law. (2) An appeal under sub-section (1) shall be filed within one hundred and eighty days from the date on which the order appealed against is received by the appellant and it shall be in such form and verified in such manner as may be prescribed: Provided that the High Court may entertain an appeal after the expiry of the said period of one hundred and eighty days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of notice that an appeal has been preferred under sub-section (1), the party against whom the appeal has been preferred may, notwithstanding that he may not have appealed against such order or any part thereof, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Appellate Tribunal and such memorandum shall be disposed of by the High Court as if it were an appeal presented within the time specified in sub-section (2).

(1) Where a taxable person who— (i) supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply; (ii) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act; (iii) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (iv) collects any tax in contravention of the provisions of this Act but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (v) fails to deduct the tax in accordance with the provisions of sub-section (1) of section 51, or deducts an amount which is less than the amount required to be deducted under the said sub-section, or where he fails to pay to the Government under sub-section (2) thereof, the amount deducted as tax; (vi) fails to collect the tax in accordance with the provisions of sub-section (1) of section 52, or collects an amount which is less than the amount required to be collected under the said sub-section or fails to pay to the Government the amount collected as tax under sub-section (3) of section 52; (vii) takes or utilises input tax credit without actual receipt of goods or services or both either fully or partially, in contravention of the provisions of this Act or the rules made thereunder; (viii) fraudulently obtains refund of tax under this Act; (ix) takes or distributes input tax credit in contravention of section 20 or the rules made thereunder; (x) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information or return with an intent to evade payment of tax due under this Act; (xi) is liable to be registered under this Act but fails to obtain registration; (xii) furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently; (xiii) obstructs or prevents any officer in the discharge of his duties under this Act; (xiv) transports any taxable goods without the cover of documents as may be specified in this behalf; (xv) suppresses his turnover leading to evasion of tax under this Act; (xvi) fails to keep, maintain or retain books of account and other documents in accordance with the provisions of this Act or the rules made thereunder; (xvii) fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or the rules made thereunder or furnishes false information or documents during any proceedings under this Act; (xviii) supplies, transports or stores any goods which he has reasons to believe are liable to confiscation under this Act; (xix) issues any invoice or document by using the registration number of another registered person; (xx) tampers with, or destroys any material evidence or document; (xxi) disposes off or tampers with any goods that have been detained, seized, or attached under any proceedings under this Act; shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher.

(1) Whoever commits, or causes to commit and retain the benefits arising out of, any of the following offences, namely:— (a) supply of any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax; (b) issue of any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax; (c) availment of input tax credit using such invoice or bill referred to in clause (b); (d) collection of any amount as tax but failing to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (e) evasion of tax, fraudulent availment of input tax credit or fraudulent obtainment of refund and where such offence is not covered under clauses (a) to (d); (f) falsification or substitution of financial records or production of fake accounts or documents or supplying of any false information, with an intention to evade payment of tax due under this Act; shall be punished where the amount of tax evaded exceeds five hundred lakh rupees, with imprisonment for a term which may extend to five years and with fine; or in the case of a second or subsequent conviction, with imprisonment for a term which may extend to five years and with fine.

"continuous journey" means a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued; "export of goods" with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India; "export of services" means the supply of any service when— (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian Rupees wherever permitted by the Reserve Bank of India; and (v) the supplier of service and recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 of section 8; "fixed establishment" means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs; "import of goods" with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India; "import of services" means the supply of any service, where— (i) the supplier of service is located outside India; (ii) the recipient of service is located in India; and (iii) the place of supply of service is in India; "integrated tax" means the integrated goods and services tax levied under this Act; "inter-State supply of goods" has the meaning assigned to it in section 7; "inter-State supply of services" has the meaning assigned to it in section 7; "intra-State supply of goods" has the meaning assigned to it in section 8; "intra-State supply of services" has the meaning assigned to it in section 8; "output tax" in relation to a taxable person, means the integrated tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis.

(1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person: Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962. (2) The integrated tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. (3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such 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 the supply of such goods or services or both. (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. (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on inter-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services.

Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon. The Government may also, by special order, exempt from payment of tax any goods or services or both on which tax is leviable. The power under Section 6 of IGST Act mirrors Section 11 of CGST Act. Notifications issued under Section 6 apply pan-India to inter-State supplies.

The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under:— (a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient; (b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third 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, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person; (c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient; (d) where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly; (e) where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board.

The place of supply of services, except the services specified in sub-sections (3) to (14),— (a) made to a registered person shall be the location of such person; (b) made to any person other than a registered person shall be the location of the recipient where the address on record exists, and otherwise the location of the supplier of services. Special rules apply to: (3) immovable property related services — location of immovable property; (4) restaurant and catering services — place of performance; (5) admission to events — place where event is held; (6) transportation of goods — location of destination of goods; (7) passenger transportation — place of embarkation; (8) services on board a conveyance — first scheduled point of departure; (9) telecom services — location of subscriber; (10) banking and financial services — location of recipient on records; (11) insurance services — location of recipient on records; (12) advertisement services to Government — each State in proportion to population; (13) intermediary services — location of supplier [Section 13(8)(b) — currently subject to proposed amendment]; (14) hiring of means of transport — location of supplier.

(1) "zero rated supply" means any of the following supplies of goods or services or both, namely:— (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. (2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. (3) A registered person making zero rated supply shall be eligible to claim refund of unutilised input tax credit on account of zero-rated supply of goods or services or both made without payment of integrated tax under a bond or a Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be prescribed; OR he may make such supply on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder. Exports with Letter of Undertaking (LUT) are the most common method — ITC refunds claimed without payment of IGST. Bond/LUT must be filed on GSTN portal before making zero-rated supply.

(1) This Act may be called the Customs Act, 1962. (2) It extends to the whole of India. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.

In this Act, unless the context otherwise requires,— (1) "adjudicating authority" means any authority competent to pass any order or decision under this Act, but does not include the Board, Commissioner (Appeals) or Appellate Tribunal; (2) "Appellate Tribunal" means the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of this Act; (4) "Bill of entry" means a bill of entry referred to in section 46; (5) "Board" means the Central Board of Indirect Taxes and Customs constituted under the Central Boards of Revenue Act, 1963; (6) "coastal goods" means goods, other than imported goods, transported in a vessel from one port in India to another; (9) "customs area" means the area of a customs station and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities; (11) "customs station" means any customs port, customs airport, land customs station or other place appointed under section 7; (12) "dutiable goods" means any goods which are chargeable to duty and on which duty has not been paid; (13) "duty" means a duty of customs leviable under this Act; (14) "entry" in relation to goods means an entry made in a bill of entry, shipping bill or bill of export and includes in the case of goods imported or to be exported by post, the entry referred to in section 82 or section 87, as the case may be; (16) "export" with its grammatical variations and cognate expressions, means taking out of India to a place outside India; (22) "import" with its grammatical variations and cognate expressions, means bringing into India from a place outside India; (23) "import manifest" or "import report" means the manifest or report required to be delivered under section 30; (25) "land customs station" means any place appointed under clause (b) of sub-section (1) of section 7 to be a land customs station; (26) "market price" in relation to any goods means the wholesale price of the goods in the ordinary course of trade in India; (27) "master" in relation to a vessel, means any person (except a pilot or harbour master) having command or charge of the vessel; (29) "person in charge" means— (a) in relation to a vessel, the master of the vessel; (b) in relation to an aircraft, the commander or pilot in charge of the aircraft; (c) in relation to a railway train, the driver of the train; (d) in relation to any other conveyance, the driver or other person in charge of the conveyance; (30) "prohibited goods" means any goods the import or export of which is subject to any prohibition under this Act or any other law for the time being in force but does not include any such goods in respect of which the conditions subject to which the goods are permitted to be imported or exported have been complied with; (33) "shipping bill" means a shipping bill referred to in section 50; (34) "smuggling" in relation to any goods means any act or omission which will render such goods liable to confiscation under section 111 or section 113; (39) "Value" in relation to any goods means the value thereof as determined in accordance with the provisions of this Act or any rules made thereunder.

(1) Except as otherwise provided in this Act, or any other law for the time being in force, duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975, or any other law for the time being in force, on goods imported into, or exported from, India. (2) The provisions of sub-section (1) shall apply in respect of all goods belonging to Government as they apply in respect of goods not belonging to Government.

(1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of the imported goods shall, subject to the rules made in this behalf, be the transaction value of such goods, that is to say, the price actually paid or payable for the goods when sold for export to India for delivery at the time and place of importation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale, subject to such other conditions as may be specified in the rules made in this behalf: Provided that such transaction value in the case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalf: Provided further that the rules made in this behalf may provide for— (i) the circumstances in which the buyer and the seller shall be deemed to be related; (ii) the manner of determination of value in respect of goods when there is no sale, or the buyer and the seller are related, or price is not the sole consideration for the sale or in any other case; (iii) the manner of acceptance or rejection of value declared by the importer and the determination of value for the purposes of this section and the Customs Tariff Act, 1975 (51 of 1975).

(1) The rate of duty and tariff value, if any, applicable to any imported goods, shall be the rate and valuation in force,— (a) in the case of goods entered for home consumption under section 46, on the date on which a bill of entry in respect of such goods is presented under that section; (b) in the case of goods cleared from a warehouse under section 68, on the date on which a bill of entry for home consumption in respect of such goods is presented under that section; (c) in the case of any other goods, on the date of payment of duty. (2) The provisions of sub-section (1) shall not apply to baggage and goods imported by post. (3) For the purposes of this section, goods entered for warehousing shall be deemed to be entered for home consumption if a bill of entry for home consumption is not presented within the period specified in sub-section (1) of section 68 or in the opinion of the proper officer, the goods cannot be kept in the warehouse without deterioration or damage.

(1) After an importer has entered any imported goods under section 46 or an exporter has entered any export goods under section 50, the proper officer may, without examining the goods, assess the duty leviable on such goods. (2) For the purpose of assessing the duty under sub-section (1), the proper officer may require the importer, exporter or any other person to produce any contract, broker's note, policy of insurance, catalogue or other document whereby the duty leviable on the imported goods or export goods, as the case may be, can be ascertained, and to furnish any information required for such ascertainment. (3) Where the proper officer is satisfied that the importer or exporter or agent has correctly assessed the duty leviable on the imported goods or export goods, he shall make an assessment order accordingly. (4) Where the proper officer is not satisfied with the assessment made by the importer, exporter or his agent, as the case may be, he shall after taking into consideration the information furnished under sub-section (2) and any other information available at the time of assessment, re-assess the duty. (5) Where any re-assessment done under sub-section (4) is contrary to the assessment done by the importer, exporter or his agent on his own or as per any facilitation extended to him, the proper officer shall pass a speaking order on the re-assessment, within fifteen days from the date of re-assessment, unless the importer, or the exporter, as the case may be, confirms his acceptance of the re-assessment in writing before the said order is passed. (6) Where any assessment done under sub-section (1) relates to imported goods that are likely to be consumed or are perishable in nature or is urgently required by the importer on account of its short life or urgency, the proper officer shall order the provisional assessment of duty leviable on such goods and permit clearance on execution of a bond as referred to in sub-section (1) of section 18.

(1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally either absolutely or subject to such conditions (to be fulfilled before or after clearance) as may be specified in the notification, goods of any specified description from the whole or any part of duty of customs leviable thereon. (2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt from the payment of duty of customs, under circumstances of an exceptional nature to be stated in such order, any goods on which duty of customs is leviable. (2A) The Central Government may insert an Explanation in any notification or order issued under sub-section (1) or sub-section (2) within one year of such issue for the purpose of clarifying the scope or applicability of such notification or order. (3) An exemption under sub-section (1) or sub-section (2) in respect of any goods from any part of the duty of customs leviable thereon (the duty of customs leviable thereon being hereinafter referred to as the statutory duty) may be granted by providing for the levy of a duty on such goods at a rate expressed in a form or method different from the form or method in which the statutory duty is leviable and any exemption granted in relation to any goods in the manner provided in this sub-section shall have effect subject to the condition that the duty of customs chargeable on such goods shall in no case exceed the statutory duty.

If any officer of customs, authorised in this behalf by general or special order by the Commissioner of Customs, has reason to believe that any person who has landed from, or is about to board, or is on board, any vessel or aircraft is carrying any dutiable article or prohibited goods on his person or in his baggage, such officer may detain such person and search him or his baggage: Provided that if any such person is a woman, no person other than a woman shall search her.

(1) If an officer of customs empowered in this behalf by general or special order by the Commissioner of Customs has reason to believe that any person in India or within the Indian customs waters has committed an offence punishable under section 135, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest. (2) Every person arrested under sub-section (1) shall, without unnecessary delay, be taken to a magistrate. (3) Where an officer of customs has arrested any person under sub-section (1), he shall, for the purpose of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions as the officer in charge of a police station has and is subject to under the Code of Criminal Procedure, 1973 (2 of 1974).

(1) If the proper officer has reason to believe that any goods are liable to confiscation under this Act, he may seize such goods: Provided that where it is not practicable to seize any such goods, the proper officer may serve on the owner of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer. (1A) The proper officer may also seize any documents or things which, in his opinion, will be useful for or relevant to any proceeding under this Act. (2) Where any goods are seized under sub-section (1) and no notice in respect thereof is given under clause (a) of section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized. Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner of Customs for a period not exceeding six months and the Commissioner of Customs shall pass an order to this effect before the expiry of the said period of six months: Provided further that where any order for provisional release of the seized goods has been made under section 110A, the period specified in this sub-section shall not apply.

The following goods brought from a place outside India shall be liable to confiscation:— (a) any goods imported by sea or air or land at any place other than a customs port or customs airport or a land customs station; (b) any goods imported or attempted to be imported or are brought within the Indian customs waters for the purpose of being imported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force; (c) any dutiable or prohibited goods brought into any bay, estuary, creek, river, land frontier or other place in a customs area for the purpose of being landed at a place other than a customs port or a land customs station; (d) any dutiable or prohibited goods found concealed in any manner in any conveyance; (e) any dutiable or prohibited goods removed or attempted to be removed from a customs area or a warehouse without the permission of the proper officer; (f) any dutiable or prohibited goods transited without payment of duty through any part of India; (g) any dutiable or prohibited goods found concealed in, or in addition to, the contents of, any imported package; (h) any goods which are imported under a claim for drawback of any duty paid thereon, in contravention of any condition subject to which the drawback was allowed; (i) any dutiable or prohibited goods imported by a vessel from a foreign port, if the master of the vessel knowingly carries as cargo, or knowingly permits to be carried as cargo, such goods in a manner not authorised by this Act; (j) any dutiable or prohibited goods, other than goods in transit, remaining in, on or attached to, any conveyance after the expiration of the period during which such goods may remain therein in accordance with any provision of this Act; (l) any goods imported or attempted to be imported or are brought within Indian customs waters for the purpose of being imported, in violation of the Foreign Trade (Development and Regulation) Act, 1992 or any rules, orders or notifications issued thereunder; (m) any goods imported or attempted to be imported in violation of the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 made under section 11B of this Act.

If any person, in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, then— (a) such goods shall be liable to confiscation; and (b) such person shall be liable,— (i) in the case of goods in respect of which any prohibition is in force under this Act or any other law for the time being in force, to a penalty not exceeding three times the value of the goods as declared by the exporter or the value as determined under this Act, whichever is the greater; (ii) in any other case, to a penalty not exceeding the value of the goods as declared by the exporter or the value as determined under this Act, whichever is the greater.

Where any duty has not been levied or has been short-levied or the interest has not been charged or has been part-paid or the duty or interest has been erroneously refunded by reason of— (a) collusion; or (b) any wilful mis-statement; or (c) suppression of facts, by the importer or the exporter or the agent or employee of the importer or exporter, the person who is liable to pay the duty or interest, as the case may be, as determined under section 28 shall also be liable to pay a penalty equal to the duty or interest so determined: Provided that where such duty or interest, as the case may be, as determined under section 28, and the interest payable thereon under section 28AA, is paid within thirty days from the date of the communication of the order of determination under section 28, the penalty payable shall be twenty-five per cent. of the duty or interest, as the case may be, so determined.

(1) Without prejudice to any action that may be taken under this Act, if any person— (a) is in relation to any goods in any way knowingly concerned in misdeclaration of value or in any fraudulent evasion or attempt at evasion of any duty chargeable thereon or of any prohibition for the time being in force under this Act or any other law for the time being in force with respect to such goods; or (b) acquires possession of or is in any way concerned in carrying, removing, depositing, harbouring, keeping, concealing, selling or purchasing, or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under section 111 or section 113; or (c) attempts to export any goods which he knows or has reason to believe are liable to confiscation under section 113; or (d) fraudulently avails of or attempts to avail of drawback or any exemption from duty provided under this Act in connection with export of goods,— he shall be punishable,— (i) in the case of an offence relating to any goods the market price of which exceeds one crore of rupees, with imprisonment for a term which may extend to seven years and shall also be liable to fine; (ii) in any other case, with imprisonment for a term which may extend to three years, or with fine, or with both.

(1) Any person aggrieved by any decision or order passed under this Act by an officer of customs lower in rank than a Principal Commissioner of Customs or Commissioner of Customs may appeal to the Commissioner (Appeals) within sixty days from the date of the communication to him of such decision or order: Provided that the Commissioner (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of sixty days, allow it to be presented within a further period of thirty days. Pre-deposit for Customs appeals: The appellant must pay admitted duty and 7.5% of disputed duty as pre-deposit before filing appeal to Commissioner (Appeals) [Section 129E]. For appeals to CESTAT, the pre-deposit is 7.5% of duty/penalty demanded (maximum ₹10 crore) for Commissioner-level orders; 10% (maximum ₹15 crore) for Commissioner (Appeals) orders.

(1) The Central Government shall, by notification in the Official Gazette, constitute a Tribunal called the Customs, Excise and Service Tax Appellate Tribunal. (2) The Tribunal shall consist of— (a) a President; and (b) such number of Vice-Presidents, Members (Judicial) and Members (Technical) as the Central Government thinks fit. (3) A person shall not be qualified for appointment— (a) as President, unless he is, or has been, a Judge of a High Court; (b) as a Vice-President, unless he is, or has been, a Judge of a High Court, or a Member of the Indian Legal Service who has held a post in Grade I of that service for at least three years; (c) as a Member (Judicial), unless he is, or has been, a member of the Indian Legal Service, and has held a post in Grade I of that service for at least three years; (d) as a Member (Technical), unless he is, or has been, a member of the Indian Customs and Central Excise Service, Group A, and has held the post of Commissioner of Customs or Central Excise or such equivalent or higher post for at least three years. CESTAT has Benches at Delhi (Principal Bench), Mumbai, Chennai, Kolkata and Ahmedabad. Appeals to CESTAT lie under Section 129A of the Customs Act and Section 35B of the Central Excise Act. The Tribunal also hears GST appeals under the Finance Act, 1994 (Service Tax) for legacy disputes. Under the CGST Act, a separate GST Appellate Tribunal (GSTAT) has been constituted under Section 109.

(1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal on or after the 1st day of July, 2003 (not being an order relating, among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment), if the High Court is satisfied that the case involves a substantial question of law. (2) The Commissioner of Customs or the other party aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High Court and such appeal under this sub-section shall be— (a) filed within one hundred and eighty days from the date on which the order appealed against is received by the Commissioner of Customs or the other party; (b) accompanied by a fee of two hundred rupees where such appeal is filed by any party other than the Commissioner of Customs. (4) Where the High Court is satisfied, on an application made in this behalf, that there is a question of law in the case, it may admit the appeal. (5) The High Court shall decide the question of law so formulated and deliver its judgment thereon containing the grounds on which such decision is founded.