Full Text
REGD. No. D. L.-33002/99
GOVERNMENT OF INDIA
Delhi Gazette
SG-DL-E-08082025-265304
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 233] DELHI, THURSDAY, AUGUST 7, 2025/SHRAVANA 16, 1947 [N. C. T. D. No. 174
PART IV
DELHI LEGISTATIVE ASSEMBLE SECRETARIAT
NOTIFICATION
Delhi, the 7th August, 2025
F. No. 21/5/DGST(2nd A)/2025/LAS-VIII/Legn./9741.—The following is published for general Information:—
THE DELHI GOODS AND SERVICES TAX (SECOND AMENDMENT) BILL, 2025
BILL NO. 05 OF 2025
(As introduced in the Legislative Assembly of the National Capital Territory of Delhi on 07 August, 2025)
THE DELHI GOODS AND SERVICES TAX (AMENDMENT) BILL, 2025
A
BILL
Further to amend the Delhi Goods and Services Tax Act 2017(3 of 2017)
BE it enacted by the Legislative Assembly of the National Capital Territory of Delhi in the Seventy-Sixth Year of
the Republic of India as follows:-
1. Short title and commencement: - (i) This Act may be called the Delhi Goods and Services (Second
Amendment) Act, 2025.
(ii) Section 2 to15of the Act shall come into force on such date as the State Government may, by notification,
in the Official Gazette, appoint and the different date may be appointed for different provisions of this Act.
2. Amendment of section 2: - In the Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as Delhi
Goods and Services Tax Act), in section 2, —
(i) in clause (61), after the word and figure "section 9", the words, brackets and figures "of
this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and
Services Tax Act, 2017" shall be inserted with effect from the 1st day of April, 2025;
(ii) in clause (69), –
(a) in sub-clause (c), after the words "management of a municipal", the word
"fund" shall be inserted;
(b) after sub-clause (c), the following Explanation shall be inserted, namely: —
'Explanation. For the purposes of this sub-clause-
(a) "local fund" means any fund under the control or management of an authority
of a local self-government established for discharging civic functions in
relation to a Panchayat area and vested by law with the powers to levy, collect
and appropriate any tax, duty, toll, cess or fee, by whatever name called;
(b) "municipal fund" means any fund under the control or management of an
authority of a local self-government established for discharging civic
functions in relation to a Metropolitan area or Municipal area and vested by
law with the powers to levy, collect and appropriate any tax, duty, toll, cess or
fee, by whatever name called;';
(iii) after clause (116), the following clause shall be inserted, namely:
'(1164) "unique identification marking" means the unique identification marking
referred to in clause (b) of sub-section (2) of section 148A and includes a digital stamp,
digital mark or any other similar marking, which is unique, secure and non-removable;'.
3. Amendment of Section 12: In section 12 of the Delhi Goods and Services Tax Act, sub-section (4) shall be
omitted.
4. Amendment of Section 13: In section 13 of the Delhi Goods and Services Tax Act, sub-section (4) shall be
omitted.
5. Amendment of Section 17: In section 17 of the Delhi Goods and Services Tax Act, in sub-section (5), in
clause (d),—
(i) for the words "plant or machinery", the words "plant and machinery" shall be substituted
and shall be deemed to have been substituted with effect from the 1st day of July, 2017;
(ii) the Explanation shall be numbered as Explanation 1 thereof, andafter Explanation 1 as so
numbered, the following Explanation shall be inserted, namely:
'Explanation 2. For the purposes of clause (d), it is hereby clarified
that notwithstanding anything to the contrary contained in any judgment, decree or
order of any court, tribunal, or other authority, any reference to "plant or
machinery" shall be construed and shall always be deemed to have been construed
as a reference to "plant and machinery";".
6. Amendment of Section 20: In section 20 of the Delhi Goods and Services Tax Act, with effect from the 1st
day of April, 2025,—
(i) in sub-section (1), after the word and figure "section 9", the words, brackets and figures "of
this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and
Services Tax Act, 2017" shall be inserted;
(ii) in sub-section (2), after the word and figure "section 9", the words, brackets and figures "of
this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and
Services Tax Act, 2017," shall be inserted.
7. Amendment of Section 34:- In section 34 of the Delhi Goods and Services Tax Act, in sub-section (2), for
the proviso, the following proviso shall be substituted, namely:
"Provided that no reduction in output tax liability of the supplier shall be permitted, if the-
(i) input tax credit as is attributable to such a credit note, if availed, has not been
reversed by the recipient, where such recipient is a registered person; or
(ii) incidence of tax on such supply has been passed on to any other person, in other
cases.".
8. Amendment of Section 38: In section 38 of the Delhi Goods and Services Tax Act,—
(i) in sub-section (1), for the words "an auto-generated statement", the words "a
statement" shall be substituted;
(ii) in sub-section (2), –
(a) for the words "auto-generated statement under", the words "statement
referred in" shall be substituted;
(b)in clause (a), the word "and" shall be omitted;
(c) in clause (b), after the words "by the recipient,", the word "including"
shall be inserted;
(d) after clause (b), the following clause shall be inserted, namely: —
"(c) such other details as may be prescribed.".
9. Amendment of Section 39-In section 39 of the Delhi Goods and Services Tax Act, in sub-section (1), for the
words "and within such time", the words "within such time, and subject to such conditions and restrictions"
shall be substituted.
10. Amendment of Section 107.-. In section 107 of the Delhi Goods and Services Tax Act, in sub-section (6), for
the proviso, the following proviso shall be substituted, namely:
"Provided that in case of any order demanding penalty without involving demand of any
tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said
penalty has been paid by the appellant.".
11. Amendment of section 112: In section 112 of the Delhi Goods and Services Tax Act, in sub-section (8),
the following proviso shall be inserted, namely:—
"Provided that in case of any order demanding penalty without involving demand of any
tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said
penalty, in addition to the amount payable under the proviso to sub-section (6) of section 107 has
been paid by the appellant.".
12. Insertion of new section 122B: After section 122A of the Delhi Goods and Services Tax Act, the
following section shall be inserted, namely:
"122B. Notwithstanding anything contained in this Act, where any person referred to in
clause (b) of sub-section (1) of section 148A acts in contravention of the provisions of the said
section, he shall, in addition to any penalty under Chapter XV or the provisions of this Chapter,
be liable to pay a penalty equal to an amount of one lakh rupees or ten per cent. of the tax payable
on such goods, whichever is higher.".
13. Insertion of new section 148A: After section 148 of the Delhi Goods and Services Tax Act, the following
section shall be inserted, namely:
"148A. (1) The Government may, on the recommendations of the Council, by notification,
specify,
(a) the goods;
(b) persons or class of persons who are in possession or deal with such goods,
to which the provisions of this section shall apply.
(2) The Government may, in respect of the goods referred to in clause (a) of sub-
section (1),—
(a)provide a system for enabling affixation of unique identification marking and for
electronic storage and access of information contained therein, through such persons, as
may be prescribed; and
(b)prescribe the unique identification marking for such goods, including the
information to be recorded therein.
(3) The persons referred to in sub-section (1), shall, –
(a) affix on the said goods or packages thereof, a unique identification marking,
containing such information and in such manner;
(b) furnish such information and details within such time and maintain such records
or documents, in such form and manner;
(c) furnish details of the machinery installed in the place of business of
manufacture of such goods, including the identification, capacity, duration of operation and
such other details or information, within such time and in such form and manner;
(d) pay such amount in relation to the system referred to in sub-section (2), as may
be prescribed.”.
14. Amendment of Schedule III: In Schedule III to the Delhi Goods and Services Tax Act,
(i) in paragraph 8, after clause (a), the following clause shall be inserted and shall be deemed to
have been inserted with effect from the 1st day of July, 2017, namely:
"(aa) Supply of goods warehoused in a Special Economic Zone or in a Free Trade
Warehousing Zone to any person before clearance for exports or to the Domestic Tariff Area;";
(ii) in Explanation 2, after the words "For the purposes of", the words, brackets and letter
"clause (a) of" shall be inserted and shall be deemed to have been inserted with effect from
the 1st day of July, 2017;
(iii) after Explanation 2, the following Explanation shall be inserted and shall be deemed to have
been inserted with effect from the 1st day of July, 2017, namely:
"Explanation3. For the purposes of clause (aa) of paragraph 8, the expressions
"Special Economic Zone”, “Free Trade Warehousing Zone" and "Domestic Tariff Area"
shall have the same meanings respectively as assigned to them in section 2 of the Special
Economic Zones Act, 2005.".
15. No Refund of tax paid or input tax credit reversed: No refund shall be made of all such tax which has been
collected, but which would not have been so collected, had section 14 been in force at all material items.
STATEMENT OF OBJECTS AND REASONS
1. The Delhi Goods and Services Tax Act, 2017 (the Act) was enacted with a view to make a provision for levy
and collection of Tax on Intra-State supply of goods or services or both by the Government of National
Capital Territory of Delhi.
2. The GST Council in its 55th meetings considered various issues regarding amendments in the definitions and
recommended to make certain amendments in the Central Goods and Services Tax Act, 2017 (the Act) to
provide effects of amendment in the definitions and sections and insertion of new sections. The copy of the
Gazette Notification of THE CENTRAL GOODS AND SERVICE TAX (AMENDMENT) ACT, 2025
(NO. 07 OF 2025) are annexed as Annexure-I. Through The Central Goods and Service Tax (Amendment)
Act, 2025 Central Government has amended the provisions of the Central Goods and Service Tax, 2017 on
the basis of the recommendations made in the GST council 55th GST meeting dated 21st December 2024. In
order to ensure uniformity between the CGST Act, 2017 and Delhi Goods and Services Tax, 2017 (3 of
2017), the Delhi Goods and Service Tax (Second Amendment) Act, 2025 is required to be enacted by the
State Legislature after making State specific modifications, wherever necessary.
3. The salient features of the proposed Delhi Goods and Services (Second Amendment) Tax Bill, 2025 are
stated as under:
(i) To amend Section 2 of the Delhi Goods and Services Tax Act, 2017 to to insert the words "of
this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and
Services Tax Act, 2017" after the words section 9 with effect from 1st day of April 2025.
To insert the word fund after the words management of a municipal and insert explanation to
define the expression "local fund" and "municipal fund".
To insert clause (116A) after clause 116 of Section 2 of the Delhi Goods and Services Tax Act,
2017 to define the expression "unique identification marking”.
(ii) To omit sub section (4) of Section 12 of the Delhi Goods and Service Tax Act, 2017 related to time
of supply of goods in case of vouchers.
(iii) To omit sub section (4) of Section 13 of the Delhi Goods and Service Tax Act, 2017 related to time
of supply of services in case of vouchers.
(iv) To amend clause (d) of sub section (5) of Section 17 of Delhi Goods and Services Tax Act, 2017 to
substitute the words "plant or machinery" with the words "plant and machinery with effect from
1st day of July, 2017.
(v) To amend sub-section (1) and (2) of Section 20 of the Delhi Goods and Services Tax Act, 2017 to
provide for ISD registration requirement and manner of distribution of credit in case of inter-state
supplies levy to IGST under RCM w.e.f. 1st April, 2025.
(vi) To amend the proviso in sub section (2) of Section 34 in the Delhi Goods and Services Tax Act,
2017 wherein no reduction in output tax liability shall be permitted to the supplier upon issuance of
credit notes in certain cases.
(vii) To amend Section 38 of the Delhi Goods and Services Tax Act, 2017 to substitute for the words "an
auto-generated statement" with the words "statement".
(viii) To amend sub-section (1) of Section 39 of the Delhi Goods and Services Tax Act, 2017 to substitute
the words "and within such time" with the words "within such time and subject to such conditions
and restrictions".
(ix) To amend sub-section (6) of Section 107 of the Delhi Goods and Services Tax Act, 2017, to provide
for mandatory pre-deposit equal to 10% of penalty amount in case of filing of appeal before the
Appellate Authority against order demanding only penalty and no tax.
(x) To insert proviso to sub-section (8) of Section 112 of the Delhi Goods and Services Tax Act, 2017,
to provide for mandatory pre-deposit equal to 10% of penalty amount in case of filing of appeal
before the Appellate Tribunal against order demanding only penalty and no tax.
(xi) To insert Section 122B in the Delhi Goods and Services Tax Act, 2017 to provide penalty for failure
to comply with track and trace mechanism.
(xii) To insert Section 148A after Section 148 of the Delhi Goods and Services Tax Act, 2017 to provide
for track and trace mechanism for certain goods on the recommendations of Council.
(xiii) To insert clause (aa) after clause (a) of Schedule III of the Delhi Goods and Services Tax Act, 2017
clarifying that supply of goods warehoused in SEZ/FTWZ before clearance shall be treated as
neither supply of goods nor supply of services.
(xiv) No refund shall be made of all such tax which has been collected, but which would not have been so
collected, had section 14 been in force at all material items.
4. The Bill seeks to achieve the above objectives.
(REKHA GUPTA)
Chief Minister/ Minister(Finance)
Government of NCT of Delhi
FINANCIAL MEMORANDUM
The proposed Delhi Goods and Services Tax (Second Amendment) Bill, 2025 does not involve any recurring or non-
recurring expenditure from the Consolidated Fund of Delhi.
(REKHA GUPTA)
Chief Minister/ Minister(Finance)
Government of NCT of Delhi
MEMORANDUM REGARDING DELEGATED LEGISLATION
The proposed Delhi Goods and Services Tax (Second Amendment) Bill, 2025 does not make provision for the
delegation of power in favour of any functionaries to make subordinate legislation.
(REKHA GUPTA)
Chief Minister/ Minister(Finance)
Government of NCT of Delhi
NOTES ON CLAUSES
[For DGST (Second Amendment) Bill, 2025]
1. Clause 1 of the Bill provides for short title and commencement.
2. Clause 2 of the Bill seeks to amend Section 2 of the Delhi Goods and Services Tax Act, 2017 to
insert the words "of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated
Goods and Services Tax Act, 2017" after the words section 9 with effect from 1st day of April 2025.
To insert the word fund after the words management of a municipal and insert explanation to define
the expression "local fund" and "municipal fund".
To insert clause (116A) after clause 116 of Section 2 of the Delhi Goods and Services Tax Act,
2017 to define the expression "unique identification marking”.
3. Clause 3 of the Bill seeks to omit sub section (4) of Section 12 of the Delhi Goods and Service Tax
Act, 2017 related to time of supply of goods in case of vouchers.
4. Clause 4 of the Bill seeks to omit sub section (4) of Section 13 of the Delhi Goods and Service Tax
Act, 2017 related to time of supply of services in case of vouchers.
5. Clause 5 of the Bill seeks to amend clause (d) of sub section (5) of Section 17 of Delhi Goods and
Services Tax Act, 2017 to substitute the words "plant or machinery" with the words "plant and
machinery with effect from 1st day of July, 2017.
6. Clause 6 of the Bill seeks to amend sub-section (1) and (2) of Section 20 of the Delhi Goods and
Services Tax Act, 2017 to provide for ISD registration requirement and manner of distribution of
credit in case of inter-state supplies levy to IGST under RCM w.e.f. 1st April, 2025.
7. Clause 7 of the Bill seeks to amend the proviso in sub section (2) of Section 34 in the Delhi Goods
and Services Tax Act, 2017 wherein no reduction in output tax liability shall be permitted to the
supplier upon issuance of credit notes in certain cases.
8. Clause 8 of the Bill seeks to amend Section 38 of the Delhi Goods and Services Tax Act, 2017 to
substitute for the words "an auto-generated statement" with the words "statement”.
9. Clause 9 of the Bill seeks to amend sub-section (1) of Section 39 of the Delhi Goods and Services
Tax Act, 2017 to substitute the words "and within such time" with the words "within such time and
subject to such conditions and restrictions".
10. Clause 10 of the Bill seeks to amend sub-section (6) of Section 107 of the Delhi Goods and Services
Tax Act, 2017, to provide for mandatory pre-deposit equal to 10% of penalty amount in case of
filing of appeal before the Appellate Authority against order demanding only penalty and no tax.
11. Clause 11 of the Bill seeks to insert proviso to sub-section (8) of Section 112 of the Delhi Goods
and Services Tax Act, 2017, to provide for mandatory pre-deposit equal to 10% of penalty amount
in case of filing of appeal before the Appellate Tribunal against order demanding only penalty and
no tax.
12. Clause 12 of the Bill seeks to insert Section 122B in the Delhi Goods and Services Tax Act, 2017 to
provide penalty for failure to comply with track and trace mechanism.
13. Clause 13 of the Bill seeks to insert Section 148A in the Delhi Goods and Services Tax Act, 2017 to
provide for track and trace mechanism for certain goods on the recommendations of Council.
14. Clause 14 of the Bill seeks to insert clause (aa) after clause (a) of Schedule III of the Delhi Goods
and Services Tax Act, 2017 clarifying that supply of goods warehoused in SEZ/FTWZ before
clearance shall be treated as neither supply of goods nor supply of services.
15. Clause 15 of the Bill seeks to No refund shall be made of all such tax which has been collected, but
which would not have been so collected, had section 14 been in force at all material items.
(REKHA GUPTA)
Chief Minister/Minister(Finance)
Government of NCT of Delhi
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054. GORAKHA NATH
YADAVA
Digitally signed by GORAKHA
NATH YADAVA
Date: 2025.08.08 14:03:28 +05'30'