The Himachal Pradesh Value Added Tax (Amendment) Act, 2024 has been enacted to amend the Himachal Pradesh Value Added Tax Act, 2005 (Act No. 12 of 2005). The amendment was assented to by the Governor of Himachal Pradesh on 19th February 2025 and is now law. The primary goal of these amendments is to streamline the administration of VAT, strengthen enforcement measures, and enhance the appeal mechanism, among other changes.
Arrangement of Sections:
- Short title.
- Amendment of Section 21.
- Amendment of Section 34.
- Amendment of Section 45.
- Amendment of Section 51.
- Amendment of Section 56.
Detailed Amendments:
1. Short Title (Section 1):
- This Act is called the Himachal Pradesh Value Added Tax (Amendment) Act, 2024.
2. Amendment of Section 21 (Section 2):
- In Section 21 of the principal Act, regarding the payment of VAT, a new provision has been added. Now, the Assessing Authority, with prior approval from the Joint Commissioner, State Taxes and Excise (Taxpayer Services, Enforcement and Allied Taxes), may extend the payment date by up to 90 days or allow the payment to be made in monthly installments, not exceeding three installments, subject to providing adequate security or a bank guarantee.
3. Amendment of Section 34 (Section 3):
- In Section 34, dealing with the detention of goods, a critical update has been made. If goods are detained, the officer detaining the goods must immediately, or within 24 hours, report the detention to the Joint Commissioner seeking approval for the detention period beyond 24 hours. If no objection is received from the Joint Commissioner, the detention is deemed acceptable.
4. Amendment of Section 45 (Section 4):
- Section 45, which addresses appeals under the VAT Act, now includes the following provisions:
- If an order is made by an Assessing Authority or any officer not below the rank of State Taxes and Excise Officer, the appeal will lie to the Joint Commissioner of the concerned zone.
- If an order is made by the Joint Commissioner, the appeal will be to the Commissioner or Additional Commissioner at the State Headquarters.
- Orders by the Commissioner or Additional Commissioner will be appealable to the Tribunal.
- Orders passed by the Joint Commissioner, Additional Commissioner, or Commissioner in appeal will be further appealable to the Tribunal.
5. Amendment of Section 51 (Section 5):
- Section 51 now allows the Commissioner or any officer not below the rank of Assistant Commissioner (GST and Allied Taxes) to accept a sum of money as a composition of offence in cases of tax-related offences. The amount will be double the tax payable on the relevant turnover of sales or purchases.
6. Amendment of Section 56 (Section 6):
- Section 56 provides more discretion to the Joint Commissioner, State Taxes and Excise regarding the disclosure of information. The information as mentioned in clauses (a), (f), and (g) of sub-section (3) can only be disclosed by the Joint Commissioner after thorough scrutiny and if he is satisfied that the disclosure is admissible.
Conclusion:
The Himachal Pradesh Value Added Tax (Amendment) Act, 2024 introduces several key changes aimed at improving VAT administration in the state. These amendments reflect the evolving needs for efficient tax collection, streamlined appeal procedures, and enhanced enforcement mechanisms, ensuring better compliance and transparency.
