The Ministry of Law and Justice (Legislative Department) on June 09, 2025, notifies the Manipur Goods and Services Tax (Amendment) Ordinance, 2025 (No. 1 of 2025).
10 key points:
Alignment with Central GST Amendments: The Ordinance brings the Manipur GST Act, 2017 in line with amendments made to the Central GST Act through the Finance (No. 2) Act, 2024, to ensure uniformity and avoid legal inconsistencies.
Retrospective Application: Most amendments are retrospectively effective from 1st November 2024. However, specific sections (like 34 and 36) are deemed effective from 30th October 2024.
New Section 11A – General Practice Protection: Introduces a provision where no GST recovery will be made on supplies that followed a generally prevalent tax practice, if the government issues a notification to that effect.
Input Tax Credit (ITC) Relaxations: Amendments to section 16 allow ITC claims for earlier financial years (2017–2021) up to November 30, 2021, and under certain conditions post-registration revocation.
New Section 74A Introduced: Establishes a new mechanism for determination of tax defaults (non-payment, short payment, wrongful credit) for FY 2024–25 onwards, including timelines for notices, penalties, and resolution.
Waiver of Interest and Penalty (Section 128A): Allows waiver of interest and penalties for tax periods between July 2017 and March 2020 if full tax is paid within a notified period, subject to conditions.
Changes to Appeals and Penalties: Reduces pre-deposit requirements for appeals and increases clarity on penalty applicability depending on the nature of default (fraud or non-fraud).
New Exemptions in Schedule III: Adds insurance-related services like co-insurance and reinsurance commissions to Schedule III, deeming them as non-supplies (i.e., outside GST scope).
Restriction on Refunds: No refund shall be granted for tax paid or ITC reversed due to retrospective effect of section 6.
Validation of Past Ordinance: Actions taken under the now-lapsed Manipur GST (Eighth Amendment) Ordinance, 2024, are deemed valid as if taken under the 2025 Ordinance.
The Ordinance can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/06/Manipur-Goods-and-Services-Tax-Amendment-Ordinance-2025.pdf
