The Manipur Goods and Services Tax (Amendment) Bill, 2025

The Manipur Goods and Services Tax (Amendment) Bill, 2025, effective from 07th August 2025, has helped Manipur’s tax regulations in aligning with recent GST reforms. This bill replaces the earlier ordinance bill, ensuring that the state’s GST regulations are synchronised with CGST amendments. Even though this bill was passed in August 2025, various amendments, for instance, the levy of taxes on Extra Neutral Alcohol or the insertion of Section 74A, are effective retrospectively from 01st November 2024. 

This article will discuss the amendments under the Manipur GST Amendment Bill, 2025.

What is the Manipur Goods and Services Tax (Amendment) Bill, 2025?

The Manipur Bill’s primary objective was to replace the lapsed ordinance and ensure GST authorities in Manipur, levy and collect State GST. By introducing structural reforms ranging from methods of tax determination to dispute resolution, the bill ensures Manipur’s alignment with the national GST framework.

Previous GST Amendments in Manipur

The Manipur GST Act had undertaken several amendments, notably from the years 2019 to 2021:

1. Second Amendment Act, 2018 dt. 05-02-2019
2. Third Amendment Act, 2020 dt. 18-05-2020
3. Fourth Amendment Act, 2021 dt. 26-02-2021

Key Provisions of the Manipur GST (Amendment) Bill, 2025

1. Levy of SGST on Extra Neutral Alcohol (ENA): Section 9 has been amended to enable the levy of State GST on undenatured Extra Neutral Alcohol (ENA) and rectified spirit used in the manufacture of alcoholic liquor for human consumption; this expanded Manipur’s tax revenue base while also maintaining national uniformity.
2. Section 74A: This section establishes a mechanism for determining and recovering tax not paid or for recovering Input Tax Credit (ITC) wrongfully availed from FY 2024–25 onwards. Notices under this section must be issued within 42 months from the due date for the annual return.
3. Section 11A – Waiver of Recovery for Generally Prevalent Practices: This section empowers the Manipur Government to waive recovery of tax, interest, or penalty, based on recommendations of GST Council.
4. Relaxation for Historical ITC Claims – Section 16(5): The Bill allows taxpayers to claim ITC for the FY 2017–18 to 2020–21, provided that relevant returns were filed by 30 November 2021. This enables businesses to claim ITC that were previously time-barred.
5. Waiver of Interest and Penalty – Section 128A: For cases covered under Section 73 for the period July 2017 to March 2020, taxpayers can settle dues by paying the principal tax only. If paid within the prescribed window, interest and penalties are waived, allowing closure of long-pending disputes.
6. Clarifications on Insurance – Schedule III: The Bill mentions the co-insurance and reinsurance commission transactions in Schedule III, classifying them as non-supplies under GST.
7.  Reduction in Predeposit: The mandatory predeposit required for filing an appeal before appellate authorities or appellate tribunal is lowered from 20% to 10% of the disputed tax amount.
8. Extension of timeline for filing appeals: The Bill empowers the GST Council to recommend extended time limits for filing appeals before the appellate tribunal.

Impact on Businesses and Taxpayers

1. Certainty in Tax Administration: Defined timelines for tax determination under Section 74A and standardised appeal procedures promote greater fluency in GST litigations.
2. Interest and Penalty Relief: The waiver scheme under Section 128A and retrospective ITC relaxation provide much-needed relief for taxpayers burdened with previous GST transition issues.
3. Support for Sectoral Growth: Combined with national rate rationalisation in 2025, these changes are expected to benefit various industries such as handloom, handicraft, dairy, and agro-processing sectors that are critical to promote Manipur’s local economy.
4. Insurance Sector: Clarity in the classification of certain insurance and reinsurance arrangements as non-supplies removes long-standing compliance uncertainty for financial institutions.