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Core Purpose

This notification publishes The Delhi Goods and Services Tax (Second Amendment) Act, 2025 (Delhi Act No. 06 of 2025), enacted to further amend the Delhi Goods and Services Tax Act, 2017 (3 of 2017).

Detailed Summary

The Delhi Goods and Services Tax (Second Amendment) Act, 2025 (Delhi Act No. 06 of 2025), received the assent of the Lt. Governor of Delhi on August 19, 2025, after being passed by the Legislative Assembly of the National Capital Territory of Delhi on August 8, 2025. This Act amends the Delhi Goods and Services Tax Act, 2017 (3 of 2017), with sections 2 to 15 slated to come into force on dates appointed by the State Government. Key amendments include modifications to Section 2, where clause (61) is amended effective April 1, 2025, to include references to sub-sections (3) or (4) of section 5 of the Integrated Goods and Services Tax Act, 2017; clause (69) is amended to insert "fund" in sub-clause (c) and introduce an Explanation defining "local fund" and "municipal fund"; and a new clause (116A) is inserted to define "unique identification marking". Sub-section (4) is omitted from both Sections 12 and 13. Section 17, sub-section (5), clause (d) is amended to substitute "plant or machinery" with "plant and machinery" retrospectively from July 1, 2017, and a new Explanation 2 is inserted for clarification. Section 20 is amended effective April 1, 2025, to include references to the Integrated Goods and Services Tax Act, 2017, in sub-sections (1) and (2). The proviso to Section 34, sub-section (2) is substituted, detailing conditions for reduction in output tax liability. Section 38 is amended to replace "an auto-generated statement" with "a statement" and adds a new clause (c) in sub-section (2). Section 39, sub-section (1) is amended to include "subject to such conditions and restrictions". The proviso to Section 107, sub-section (6) is substituted, requiring payment of 10% of the penalty for appeals against orders demanding penalty without tax. A proviso is inserted in Section 112, sub-section (8), requiring 10% of the penalty in addition to the amount payable under Section 107(6) for similar appeals. New Section 122B is inserted, imposing a penalty of one lakh rupees or 10% of tax payable (whichever is higher) for contravention of section 148A(1)(b). A new Section 148A is inserted, empowering the Government to specify goods and persons for a unique identification marking system. Schedule III is amended retrospectively from July 1, 2017, to insert clause (aa) in paragraph 8 regarding the supply of goods warehoused in Special Economic Zones or Free Trade Warehousing Zones, and Explanation 3 is inserted defining "Special Economic Zone", "Free Trade Warehousing Zone", and "Domestic Tariff Area" as per Section 2 of the Special Economic Zones Act, 2005. The Act also specifies that no refund shall be made of tax collected if section 14 had not been in force.

Full Text

REGD. No. D. L.-33002/99 GOVERNMENT OF INDIA Delhi Gazette SG-DL-E-22082025-265626 EXTRAORDINARY PUBLISHED BY AUTHORITY No. 246] DELHI, WEDNESDAY, AUGUST 20, 2025/SHRAVANA 29, 1947 [N. C. T. D. No. 188 PART IV GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI Delhi, 19th August, 2025 F.14 (102)/LA/2025/jtsecylaw/641-650— {19th August, 2025} 5574 DG/2025 (1) DEPARTMENT OF LAW, JUSTICE AND LEGISLATIVE AFFAIRS NOTIFICATION Delhi, the 19th August, 2025 F.14 (102)/LA/2025/ jtsecylaw/641-650.—The following Act of the Legislative Assembly of the National Capital Territory of Delhi received the assent of the Lt. Governor of Delhi on the 19th August, 2025 and is hereby published for general information. THE DELHI GOODS AND SERVICES TAX (SECOND AMENDMENT) ACT, 2025 (DELHI ACT No. 06 OF 2025) (As passed by the Legislative Assembly of the National Capital Territory of Delhi on 08th August, 2025). [19th August, 2025] 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 to 15 of 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, — (ii) 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; 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: – '(116A) "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, and after 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;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. REETESH SINGH, Principal Secretary 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: 2025.08.22 14:25:09 +05'30'

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