Sales Tax Instructions

Sales Tax Instructions, 2009
********
SALES TAX GENERAL ORDER NO.2/2000.
C.No. 3(22)STP/98 DATED 11 TH APRIL, 2000
SUBJECT:-
LEVY OF FURTHER TAX UNDER SECTION 3(1A) OF THE
SALES TAX ACT, 1990.
Ever since the levy of further tax under section 3(1A) of the Sales Tax Act, 1990,
persons making supplies of goods exempt from sales tax under section 13(1) read with
the Sixth Schedule have started taking voluntary registrations as provided under section
13(4) read with section 18(1) of the Act. Section 13(4) envisages voluntary registration if
a person does not desire to avail any tax exemption while section 18(1) provides for
voluntary registration of such a person who makes or intends to make taxable supplies
but is not required to be registered under the Sales Tax Act, 1990. Keeping in view the
different grounds for voluntary registration mentioned in section 13(4) and section 18(1),
the following questions were raised and sent to the Law & Justice Division for an advice:
(i) whether or not a person making supply of goods exempt under section 13(1) is
entitled to voluntary registration under section 18(1);
(ii) whether or not on such voluntary registration, a person has to fulfill all duties
and responsibilities as assigned to a registered person under the Act (e.g. issuing
tax invoice and filing of monthly return) and also to avail of the benefits (e.g.
non-payment of further tax etc.) as are available to a registered person under the
Act; and
(iii) whether or not on such voluntary registration, his supplies (even if otherwise
exempt under sub-section (1) of section 13) become liable to sales tax and the
exemption stands negated.
2. On the basis of advice received from the Law & Justice Division, the following
answers to the above questions have been ascertained :-
(iv)
(v)
A person making supplies of goods exempt under section 13(1) is entitled to
voluntary registration under section 18(1) as provided under section 13(4);
All rights, duties, liabilities, responsibilities and benefits of a "registered
person" including the provisions of section 8, shall accrue to such a
voluntarily registered person; and