The Central Government on Monday introduced the Manipur Goods and Services Tax (Second Amendment) Bill, 2025 in the Lok Sabha, bringing sweeping changes to the state’s GST regime, including the introduction of a mandatory track-and-trace mechanism for specified goods, expanded definitions, compliance overhauls, and revised appellate procedures. The amendments aim to align Manipur’s GST law with the Finance Act, 2025 and the structure of the Central Goods and Services Tax (CGST) Act.
With President’s Rule currently operational in Manipur, Parliament is exercising legislative authority for the state to ensure uniformity in GST administration nationwide.
Key Highlights of the Amendment
The Bill introduces structural, definitional, and compliance-related changes across the Manipur GST Act, 2017.
Major Change: New Track-and-Trace Compliance Framework (Section 148A)
The most significant reform is the insertion of Section 148A, empowering the Government to notify:
- Goods requiring unique identification markings,
- Persons handling such goods, and
- The system for affixing secure, non-removable digital stamps or markings.
The provision mandates electronic storage, access and verification of data encoded into the unique markings. Every notified entity must:
- Affix the prescribed digital mark on goods or packages,
- Furnish detailed records on packaging, machinery, and operational parameters,
- Maintain prescribed documentation, and
- Pay charges associated with the tracking system.
To ensure effective enforcement, a new Section 122B imposes a penalty of ₹1 lakh or 10% of tax, whichever is higher, for contravention of track-and-trace rules.
Other Key Amendments
1. Expanded scope of input tax and definitions
Section 2(61) now includes tax payable under IGST Act Sections 5(3) and 5(4), effective April 1, 2025.
A new Section 2(116A) defines “unique identification marking,” enabling digital compliance systems.
2. Revision in time-of-supply provisions
Sections 12 and 13 omit sub-section (4), simplifying the rules for determining time of supply.
3. Clarification on ‘plant and machinery’
Section 17(5)(d) replaces “plant or machinery” with “plant and machinery,” clarifying ITC restrictions retrospectively from July 1, 2017.
4. Return filing and mismatches
Section 38 replaces “auto-generated statement” with “statement,” giving flexibility for system-driven updates.
Section 39 adds conditions and restrictions to return filing timelines.
5. Appeal pre-deposit in penalty-only cases
Under amended Sections 107 and 112, appeals against penalty-only orders now require a 10% pre-deposit of the penalty amount.
Schedule III Amendments (Retrospective Effect)
The Bill retrospectively inserts clause (aa) under Paragraph 8 of Schedule III to exclude from GST:
- Supply of goods warehoused in SEZs or FTWZs prior to export or clearance to the Domestic Tariff Area.
Definitions from the SEZ Act, 2005 now legally apply to these transactions.
No Refund for Past Periods
Section 15 bars refund of taxes already collected where such levy becomes non-applicable under the retrospective amendments.
Replacing Ordinance Due to President’s Rule
The Bill replaces the Manipur GST (Second Amendment) Ordinance, 2025, promulgated on October 7, 2025. The Statement of Objects notes that urgent amendments were required while Parliament was not in session.
No Financial Burden on State
The accompanying financial memorandum confirms that the amendments entail no expenditure from the Consolidated Fund of the State of Manipur.
