Clarification on the effective date of explanation inserted in notification No. 11/2017- CTR dated 28.06.2017. Sr. No. 3(vi) - GST - States - 120/39/2019-GST 49/2019 (ST/Tech//2019/11240)

Circular No. 120/39/2019-GST 49/2019 OFFICE OF COMMISSIONER OF STATE TAX CHHATTISGARH, NAYA RAIPUR, ATAL NAGAR, DISTRICT-RAIPUR No./ST/Tech//2019/11240 Atal Nagar, Raipur Dated : 15.10.2019 To, Special Commissioner Additional Commissioners/ Joint Commissioners/Deputy Commissioners/ Assistant Commissioner/State Tax Officers/ State Tax, Chhattisgarh (All) . Madam/Sir, Subject : Clarification on the effective date of explanation inserted in notification No. 11/2017- CTR dated 28.06.2017. Sr. No. 3(vi) - reg. A circular dated 11.10.2019 has been issued by CBIC regarding the effective date of notification No. 17/2018-STR dated 26.07.2018 whereby explanation was inserted in notification No. 11/2017- STR dated 28.06.2017, Sr. No. 3(vi) to the effect that for the purpose of the said entry, the activities or transactions under taken by Government and Local Authority are excluded from the term business . In accordance with the said circular and in order to ensure uniformity in the implementation of the provisions of the law across the State, the Commissioner, in exercise of its powers conferred by section 168 of the Chhattisgarh Goods and Services Tax Act, 2017 (CGGST Act for short) hereby clarifies the issues. 2. The matter has been examined. Section 11(3) of CGGST Act provides that the Government may insert an explanation in any notification issued under section 11, for the purpose of clarifying its scope or applicability, at any time within one year of issue of the notification and every such explanation shall have effect as if it had always been the part of the first such notification. 3. As recommended by GST Council, the explanation in question was inserted vide notification No. 17/2018-STR dated 26.07.2018 in exercise of powers under section 11(3) within one year of the insertion of the original entry prescribing concessional rate, so that it would have effect from the date of inception of the entry i.e. 21.09.2017. However, like other notifications issued on 26.07.2018 to give effect to other recommendations of the GST Council, the said notification also contained a line in the last paragraph that the notification shall come into effect from 27.07.2018. 4. It is hereby clarified that the explanation having been inserted under section 11 (3) of the CGGST Act, is effective from the inception of the entry at SI. No. 3(vi) of the notification No. 11/2017. STR dated 28.06.2017, that is 21.09. 2017. The line in notification No. 17/2018-STR dated 26.07.2018 which states that the notification shall come into effect from 27.07.2017 does not alter the operation of the notification in terms of Section 11 (3) as explained in para 3 above. 5. Difficulty or suggestions, if any, may please be brought into the notice of this office. (Reena Babasaheb Kangale) Commissioner, State Tax Chhattisgarh, Raipur