The Manipur Goods and Services Tax (Second Amendment) Act, 2025 has received the assent of the President on December 10, 2025 and has been published December 11, 2025. The Act introduces several key amendments to the Manipur GST Act, 2017, aimed at strengthening tax administration, improving compliance, and enabling technological reforms in the GST framework of the State.
Key Highlights of the Amendment Act
- Streamlining Definitions and Expanding Scope
- Amendments to Section 2 expand the scope of “consideration liable to tax” to include references under the Integrated GST Act.
- New definitions for local fund, municipal fund, and unique identification marking have been added, enhancing clarity in GST provisions.
- Rationalisation of Time of Supply Provisions
- Sub-section (4) in both Section 12 (goods) and Section 13 (services) has been omitted.
- References in related provisions have been aligned to improve uniformity in determination of time of supply.
- Input Tax Credit (ITC) Clarifications
- In Section 17(5)(d), the term “plant and machinery” replaces “plant or machinery”, with retrospective effect from 1 July 2017.
- A new Explanation 2 clarifies interpretation for legal consistency.
- Amendments for Better Transparency in Returns
- Section 38 now refers to a statement, instead of an “auto-generated statement”, allowing greater flexibility.
- Additional details may be prescribed to enhance data accuracy for matching input tax credit.
- Modified Appeal Requirements for Penalty-Only Orders
- Sections 107 and 112 specify that appeals against orders involving penalty without tax demand will require pre-deposit of 10% of the penalty amount.
- Introduction of New Penalty for Non-Compliance with Track-and-Trace System
- A new Section 122B imposes penalties up to ₹1 lakh or 10% of tax payable, whichever is higher, for non-compliance by persons required to affix unique identification markings under Section 148A.
- Track-and-Trace Mechanism for Specified Goods
- Section 148A empowers the Government to notify goods and persons required to adopt a unique identification marking system, enabling enhanced monitoring and reducing evasion.
- Provisions include affixation, information reporting, and machinery-related disclosures.
- Changes in Schedule III (Activities Neither Supply of Goods Nor Supply of Services)
- A new clause allows supply of goods warehoused in SEZ/FTWZ to any person before clearance for export or to Domestic Tariff Area (DTA) to be treated as non-supply.
- Additional explanations align definitions with the Special Economic Zones Act, 2005.
- Refund Restrictions
- No refund will be provided for taxes collected earlier if such tax would not have been collected had the amendment to Schedule III been in force from the beginning.
- Repeal of the Manipur GST (Second Amendment) Ordinance, 2025
- The earlier Ordinance stands repealed; actions taken under it are deemed valid under the new Act.
Conclusion
The Manipur GST (Second Amendment) Act, 2025 strengthens the legal and administrative GST framework in the State by introducing clarity in definitions, modernising compliance through digital track-and-trace mechanisms, improving return-related transparency, and rationalising appeal processes. These reforms aim to enhance ease of doing business and ensure greater revenue assurance.
The Manipur GST (Second Amendment) Act, 2025 can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/MANIPUR-GST-SECOND-AMENDMENT-ACT-2025.pdf
