# The Bihar Goods and Services Tax Act, 2017, Section 42

- Act: The Bihar Goods and Services Tax Act, 2017 (Act 12 of 2017)
- Source URL: https://indiacode.ecourtsindia.com/bihar-goods-services-tax-act-2017/section/42/

## Text

Inserted by The Bihar Goods and Services Tax (Amendment) Act, 2019 (Bihar Act no. 21 of 2019) vide Notification No. 1329 Dated 12th December, 2019. Compiled by Commercial Taxes Department, Bihar in Association with National Law Book Publications, Ghaziabad (3) The option availed of by a registered person under sub-section (1) [or sub-section (2A), as the case may be,]43 shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified under sub-section (1) [or sub-section (2A), as the case may be,]44. (4) A taxable person to whom the provisions of subsection (1) [or, as the case may be, sub-section (2A)]45 apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax. (5) If the proper officer has reasons to believe that a taxable person has paid tax under sub-section (1) [or sub-section (2A), as the case may be,]46 despite not being eligible, such person shall, in addition to any tax that may be payable by him under any other provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74 [or section 74A]47 shall, mutatis mutandis, apply for determination of tax and penalty. [Explanation 1 .- For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression "aggregate turnover" shall include the value of supplies made by such person to the 1st day of April of a financial year up to the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount. Explanation 2 .- For the purposes of determining the tax payable by a person under this section, the expression "turnover in State or turnover in Union territory" shall not include the value of following supplies, namely :- (1) supplies to the first day of April of a financial year up to the date when such person becomes liable for registration under this Act; and (i) exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.'.]48 11. Power to grant exemption from tax .- (1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions

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