The Central Government has introduced the Manipur Goods and Services Tax (Second Amendment) Bill, 2025 in Lok Sabha, aiming to align the State GST law with the recent amendments made to the Central GST Act through the Finance Act, 2025. The amendments implement the decisions of the 56th GST Council and replace the Manipur GST Ordinance, 2025, which was promulgated earlier due to the imposition of President's Rule in the state.
Why the Amendment Was Needed
The Statement of Objects and Reasons highlights that the CGST Act underwent substantial changes via Sections 121 to 134 of the Finance Act, 2025. To avoid legal inconsistencies between Central and State GST laws, similar updates were required urgently in the Manipur GST Act, 2017. Since Parliament was not in session and urgent action was necessary, the President promulgated the Ordinance on 7 October 2025. The Bill now seeks to formally replace it.
Key Highlights of the Manipur GST Amendment Bill, 2025
1. Updated Definitions and New Concept of "Unique Identification Marking"
The Bill modifies several definitions under Section 2. A notable addition is Section 2(116A), which introduces the concept of "unique identification marking", a critical part of the upcoming track-and-trace mechanism. This includes secure, digital, non-removable identification marks such as digital stamps or digital labels.
2. Time of Supply Changes for Goods and Services
Sections 12 and 13 have been amended by removing sub-section (4), which earlier governed time of supply for vouchers. Related consequential changes have been made in sub-sections (5) of both sections.
3. Clarification on "Plant and Machinery" - Retrospective From 2017
Section 17(5)(d) sees a major correction: The phrase "plant or machinery" is now replaced with "plant and machinery."The clarification applies retrospectively from 1 July 2017, and overturns contrary judicial interpretations.
4. Reform in Credit Notes and Output Tax Liability
A new proviso under Section 34(2) provides that suppliers cannot reduce output tax liability if the recipient has not reversed ITC or if tax incidence has been passed to another person.This change aims to tighten credit-note adjustments and prevent misuse.
5. Enhancements in GSTR-2B Type Statement (Section 38)
The term "auto-generated statement" is replaced with "statement."Additional categories of information may now be prescribed, allowing more flexibility for future GSTN upgrades.
6. New Pre-Deposit Rules for Penalty-Only Appeals
Sections 107 and 112 now require a 10% pre-deposit of penalty for filing appeals even when no tax demand is involved. Earlier, appeals in penalty-only cases sometimes proceeded without specific pre-deposit requirements.
7. Introduction of a Track-and-Trace System - New Section 148A
One of the most significant reforms is the insertion of Section 148A, enabling a full-fledged track-and-trace mechanism for notified goods.
Key features include
Government may notify:
- Categories of goods
- Persons dealing in those goods
Manufacturers and suppliers must:
- Affix unique identification markings
- Maintain detailed records
- Furnish information on installed machinery, capacity, operational details
- Comply with timelines and formats prescribed
Additional Penalty - New Section 122B
Failure to comply with the track-and-trace mechanism attracts a penalty of ₹1 lakh or 10% of tax payable, whichever is higher.
8. Supply of SEZ Warehoused Goods Added to Schedule III
The Bill expands Schedule III to exclude from GST: Supply of warehoused goods located in SEZs or Free Trade Warehousing Zones, before clearance for export or DTA consumption.
The amendment is effective retrospectively from 1 July 2017.
Financial Impact
The Financial Memorandum notes that the Bill does not impose any new expenditure on the Consolidated Fund of Manipur.
Repeal of the Ordinance
Once enacted, the Bill will repeal the Manipur GST (Second Amendment) Ordinance, 2025, while retaining all actions taken under it.
Conclusion
The Manipur GST (Second Amendment) Bill, 2025 brings the state's GST law fully in line with recent national-level reforms. Key changes-such as the track-and-trace system, updated credit note rules, retrospective clarifications, and alignment with the 56th GST Council decisions-are aimed at strengthening compliance, improving transparency, and harmonising GST administration across India.
Official copy of the notificaiton has been attached
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