The Manipur Goods and Services Tax (Second Amendment) Act, 2025 has officially come into force after receiving the President's assent on December 10, 2025. Published in the Gazette of India by the Ministry of Law and Justice, the amendment introduces several important updates to the Manipur GST Act, 2017, ranging from input tax credit (ITC) conditions and credit notes to unique identification marking and track-and-trace compliance for specified goods.
Key Amendments to Definitions and ITC Provisions
The Act revises crucial definitions under Section 2, including an expanded meaning of "outward supply" with retrospective effect from April 1, 2025. It also clarifies the definitions of local fund and municipal fund, ensuring better alignment with local self-government structures. A new clause, Section 2(116A), introduces the concept of "unique identification marking", which plays a central role in the upcoming track-and-trace system.
In Section 17, the amendment makes a significant retrospective clarification regarding ITC: any reference to "plant or machinery" shall always be read as "plant and machinery", effective from July 1, 2017. This clarification overrides contrary court rulings and ensures consistent interpretation for ITC eligibility.
Compliance Updates: Track-and-Trace System Introduced
A major highlight is the insertion of Section 148A, empowering the government to implement a track-and-trace mechanism for specified goods through unique identification marking, digital stamps, or other secure markings. Manufacturers and dealers handling such goods will be required to:
- Affix unique identification markings
- Maintain detailed records and furnish specified information
- Provide details of installed machinery and production capacity
- Pay the prescribed fees associated with the system
Non-compliance with these requirements will attract a penalty under newly inserted Section 122B, amounting to Rs 1 lakh or 10% of the tax involved, whichever is higher.
Impact on Appeals, Credit Notes and Returns
The amendment modifies Sections 34, 38, and 39, introducing stricter conditions for reducing output tax liability through credit notes, updating the format of statements, and adding compliance restrictions for returns.
Appeal provisions under Sections 107 and 112 have also been tightened. In cases involving penalty-only orders, taxpayers must pre-deposit 10% of the penalty amount before filing an appeal.
Changes to Schedule III and No Refund for Certain Collected Taxes
The Act updates Schedule III (activities treated neither as supply of goods nor services), now including supplies from SEZ/FTWZ warehouses to DTA or export buyers, retrospectively from July 1, 2017. However, taxpayers should note that no refund will be granted for taxes already collected on supplies that would have been exempt had this provision been effective earlier.
Official copy of the notification has been attached
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