GST Bill | Lok Sabha Tables Manipur GST (2nd Amendment) Bill 2025; Track-And-Trace Mechanism Proposed For Select Goods

The Bill proposes significant changes relating to input tax credit, distribution of credit, return filing, appeal pre-deposit, treatment of credit notes and, notably, introduction of a track-and-trace mechanism with unique identification marking for specified goods.

The Bill seeks to amend the Manipur GST Act, 2017, which is currently operational under President's Rule (Article 356) in the State.

The Statement of Objects and Reasons notes that since Parliament was not in session and immediate legislative intervention was required to avoid repugnancy with the Central Act, the President had already promulgated the Manipur Goods and Services Tax (Second Amendment) Ordinance, 2025 on October 7, 2025. The Bill now aims to replace the Ordinance.

Key Amendments Proposed:-

• Track-and-Trace Framework through New Section 148A, empowers the Government to mandate unique identification marking (digital stamp/mark) on notified goods and obligates specified persons to furnish goods-related information, machinery details, and maintain prescribed records.
• Penalty for Non-Compliance (Section 122B), penalty equal to ₹1 lakh or 10% of tax payable, whichever is higher, for breach of track-and-trace requirements.
• Input Tax Credit Restriction Clarification (Section 17(5)(d)), the expression “plant or machinery” is clarified to mean “plant and machinery”, notwithstanding anything to the contrary contained in any court judgment and deemed retrospective from 1 July 2017.
• Appeal Pre-Deposit for Penalty-Only Orders (Sections 107 & 112), appeal against penalty-only orders will require 10% of penalty for the first appeal and an additional 10% (over the first pre-deposit) for appeal to the Appellate Tribunal.
• Return Filing (Section 39), insertion of the phrase “subject to such conditions and restrictions”, giving wider rule-making power on filing requirements.
• Credit Notes (Section 34), tax liability reduction will not be allowed if ITC attributable to a credit note remains un-reversed by the recipient or if the tax incidence has been passed on.
• Input Service Distributor (Sections 2 & 20), aligns provisions to include services taxable under IGST Act Section 5(3)/(4).

Schedule III Amendment:-Transactions Neither Supply of Goods Nor Supply of Services

The Bill inserts a new clause 8(aa) to clarify that supply of warehoused goods in an SEZ or Free Trade Warehousing Zone before clearance for export or to the Domestic Tariff Area shall not be treated as supply of goods or services. Explanatory references are aligned with the SEZ Act, 2005.

No Refund For Tax Earlier Collected

The Bill expressly states that no refund shall be granted for tax collected earlier which would not have been collected had the amendment to Schedule III been in force during the relevant period.

Financial Effect

The Financial Memorandum states that the Bill will not result in additional expenditure from the Consolidated Fund of Manipur.

Purpose Behind the Legislation

The Statement of Objects and Reasons acknowledges the urgency to maintain parity with the Central GST Act and ensure continuity of the State GST framework despite the ongoing proclamation under Article 356 in Manipur.

Click Here To Read/Download The Bill