Author: admin_gst

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 15-6-2016 Last Replied Date:- 17-6-2016 – Dear Professional Colleague, Draft Model GST Law on public domain The much talked about Goods and Services tax ( GST ) regime – Single biggest tax reform since Independence has been creating a buzz amongst all stake holders, eagerly waiting for the monsoon session of the Parliament to commence with the hope that the much awaited Constitutional (122nd Amendment) Bill, 2014 on GST ( 122nd CAB or GST Bill ) will be passed, which will pave the way for GST in the Country. GST is a destination based consumption tax levied at multiple stages of production and distribution of goods and services, with taxes on inputs credited against taxes on output. GST is going to be big game changer and will be one of the most significant tax reforms in the fiscal history of India to consolidate present multiple layers of Indirect taxation. The implementation of GST will have a far-reaching impact on almost a

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ignalling that the GST might mark its advent from April 1, 2017. Virtually all states have supported the idea of GST except Tamil Nadu which has some reservations , Finance Minister Arun Jaitley said after the meeting of Empowered Committee on the long awaited indirect tax reform. The Draft GST Law is a model which the Central Government and each of the State Governments would use to draft their respective Central and State GST Acts. Further, a Draft of the Integrated GST Act, 2016, which will govern levy of GST on inter-State supplies by the Central Government, is also issued. The Draft Model GST Law provides an insight on the governing provisions regarding levy and collection of GST. The Draft Model GST Law states that the Act shall be referred as the Central/ State Goods and Services Tax Act, 2016. The Draft Model GST Law consists of 162 clauses divided into 25 Chapters along with 4 schedules and Rules as to Valuation under GST. Further, the Draft Integrated GST Act, 2016 consists o

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s; Time and value of supply: Under the proposed GST regime, all the major taxes levied under the Indirect taxation i.e. Central Excise, Service tax, VAT/CST etc., are proposed to be brought under the ambit of GST. Hence, the prevailing concepts of manufacturing of Goods/ provision of Services/ sale of Goods will no longer be relevant and common base has to be arrived at for levy and collection of GST in all cases; Scheme of input tax credit including manner of taking Input tax credit, credit in case of input sent for job works, manner of distribution of credit by Input service distributor etc.; Transfer of input tax credit Payment of tax, interest, penalty and other amounts; Tax invoice, credit and debit notes Returns and related compliances Demands/ recovery; Refund; Transitional provisions The availability of Draft Model GST Law enables the Trade and Industry to plan the transition from the existing Indirect tax regime to the GST regime. It is important that a thorough analysis of th

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Goods and Services Tax – MODEL GST LAW – The proposed draft of GOODS AND SERVICES TAX ACT, 2016 – As per the draft there will be three laws (1) CGST Act, (2) SGST ACT and (3) IGST Act – Each state to have its own SGST Act – TMI Updates – Highlights

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MODEL GST LAW – Goods and Services Tax – GST – Dated:- 14-6-2016 – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 THE INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) GST Valuation (Determina

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Income Tax – Direct Tax Code – DTC – By: – CA DEV KUMAR KOTHARI – Dated:- 14-6-2016 Last Replied Date:- 30-12-1899 – Relevant portions of S.206C regarding obligation for collection in simplified manner. Section 206C for Tax collection at source: In Chapter XVII sub-chapter BB- Collection at source was inserted w.e.f. 01.06.1988. S.206C is about obligations and related liabilities for TCS. The provisions have been amended too many times. In any standard book or website we find more than 50 foot notes about amendments. Related Rules have also been inserted and / or amended many times. To simply convey about new obligations related with TCS on sale of goods and providing services an attempt has been made to put the provisions in simple manner. In the table, in left column relevant provision has been reproduced with highlights for easy analysis and understanding. In right column, main points are mentioned in simple language. Income-tax Act, 1961 [BB.-Collection at source Simplified main p

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(ii), or any service, exceeds two hundred thousand rupees: Rs. two lakh is limit. On reading of provisions, limit seems applicable to each case of receipt of consideration in cash. Provided that no tax shall be collected at source under this subsection on any amount on which tax has been deducted by the payer under Chapter XVII-B.] If tax has been deducted by payer than TCS will not apply- this is presently only for contracts and many services. 1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, as may be prescribed. Exceptions will be as may be prescribed. (1F) Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent. of the sale consideration as income-tax.] Sale

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Failure to collect tax shall not absolve from liability- amount collectible will have to be paid, whether collected or not. [(6A) If any person responsible for collecting tax in accordance with the provisions of this section does not collect the whole or any part of the tax or after collecting, fails to pay the tax as required by or under this Act, he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax: Full or partial failure in collection and payment will lead the treatment of assessee in default in respect of the tax: (7) Without prejudice to the provisions of sub-section (6), if the [person responsible for collecting tax] does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay simple interest at the rate of [one] per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date

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rate than the relevant rate specified in sub-section (1) 33[or sub-section (1C) 42[or sub-section (1D)]]. Application by buyer / service receiver and grant for TCS at lower rate. (10) Where a certificate under sub-section (9) is given, the person responsible for collecting the tax shall, until such certificate is cancelled by the Assessing Officer, collect the tax at the rates specified in such certificate. Lower TCS certificate will prevail unless cancelled.(or limit expires- if it is granted for limited period) (11) The Board may, having regard to the convenience of assessees and the interests of revenue, by notification in the Official Gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of a certificate under sub-section (9) and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.] Rules will govern application, and grant for lower TCS certif

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2016 (6) TMI 452 – ITAT MUMBAI – TMI – Reopening of assessment – Deduction under section 80IB(10) allowed excessively to the extent that it is beyond the amount of income under the head ‘business or profession’ – CIT(Appeals) allowing assessee’s claim for deduction under section 80IB(10) to the extent of gross total income and not restricting the same to extent of income under the head ‘business and profession’ – Held that:- It is a trite law that ‘reason to believe’ referred to in Sec. 147 of the Act is one which is prudent and plausible in law and not based on any misconception either in law or on facts. In the present case, the reasons recorded clearly suggest that Assessing Officer is under a misconception in inferring that there is an excessive grant of deduction u/s 80IB(10) of the Act. Ostensibly, the proposition in the mind of the Assessing Officer is not borne out of the bare phraseology of the relevant provisions, as we have seen in the earlier part of this order, and rathe

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turn arises out of an order passed by Assessing Officer under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short the Act ) dated 06/12/2012. 2. In its appeal the solitary grievance of the Revenue is against the action of the CIT(Appeals) in allowing assessee s claim for deduction under section 80IB(10) of the Act to the extent of gross total income of ₹ 71,99,25,721/- and not restricting the same to ₹ 68,18,56,583/- i.e. to extent of income under the head business and profession . 3. In brief, the relevant facts are that assessee is a company incorporated under the provisions of the Companies Act, 1956 and is, inter-alia, engaged in the business of construction and property development. In an assessment finalized under section 143(3) of the Act dated 24/12/2009, the total income was determined at ₹ 10,59,17,950/- which, inter-alia, included relief under section 80IB(10) of the Act amounting to ₹ 71,99,25,721/-. Consequently, the Assessing Officer re

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ction under section 80IB(10) of the Act. There is no dispute between assessee and the Revenue that the quantum of deduction under section 80IB(10) of the Act is ₹ 71,99,25,721/-. In its return of income, assessee claimed a deduction of ₹ 71,99,25,721/- under section 80IB(10) of the Act as it was within the limit of its gross total income amounting to ₹ 82,58,43,666/-. However, in the impugned assessment the Assessing Officer restricted the claim of deduction to ₹ 68,18,56,583/-, i.e., to the extent of income under the head income from business and profession instead of allowing deduction/s. 80IB(10) of the Act to the extent of the gross total income. 5. Before us, the Ld. Departmental Representative contended that the deduction allowable under section 80IB(10) of the Act is with respect to the business income and not against the income assessable under the other heads. It is sought to be pointed out that profit from the housing project was to the extent of &#837

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77; 71,99,25,721/-. In the impugned assessment finalized u/s 143(3) r.w.s. 147 of the Act, the gross total income (before allowing deduction under Chapter VI-A) was arrived at ₹ 82,55,23,592/- which comprised of (i) income from house property – ₹ 13,51,076/-, (ii) income from business – ₹ 68,18,56,583/-; and, income from other sources – ₹ 14,23,15,933/-. The total taxable income has been computed by the Assessing Officer at ₹ 14,36,67,009/- after allowing deduction u/s 80IB(10) of the Act of ₹ 68,18,56,583/-. The dispute between the assessee and the Revenue is in respect of the claim allowed by the Assessing Officer of ₹ 68,18,56,583/- instead of ₹ 71,99,25,721/- sought by the assessee. The point raised is as to whether the claim u/s 80IB(10) of the Act is to be restricted to gross total income as contended by the assessee or it is to be restricted to the extent of income from business or profession. 7. Sec. 80IB of the Act prescribes for

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llowable. For that matter, sub-section (1) of Sec. 80A prescribes that in computing the total income there shall be allowed from the gross total income, deductions specified in Sec. 80C to 80U of the Act subject to the conditions prescribed therein. The claim of the assessee is u/s 80IB(10) which is also liable to be governed by the prescription of Sec. 80A(1) of the Act. Sub-section (2) of Sec. 80A further prescribes that the aggregate amount of deductions under Chapter VI-A shall not, in any case, exceed the gross total income of the assessee. Furthermore, the gross total income has also been defined in Chapter VI-A by way of Sec. 80B(5) to mean the total income computed in accordance with the provisions of the Act before making any deductions under Chapter VI-A. The aforesaid clearly implies that in order to deduce the amount of deduction entitled to the assessee u/s 80IB(10) of the Act, the starting point is the determination of the gross total income. Along with it, the eligible a

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estricted to the extent of income from business or profession. 8. We find that the aforesaid conclusion of the CIT(Appeals) is in consonance with the parity of reasoning laid down by the Hon'ble Bombay High Court in the case of M/s. J.B. Boda & Co. P. Ltd. in Income Tax Appeal No. 3224 of 2009 dated 18.10.2010. In the said case, the amount of eligible deduction u/s 80-O of the Act (which is also a part of Chapter VI-A) was determined at ₹ 1,29,41,830/- but the Assessing Officer restricted the claim to ₹ 69,70,000/- being the income under the head business or profession . The assessee, on the other hand, sought the deduction to the extent of the gross total income referred to in Sec. 80B(5) of the Act. The Tribunal noted that Sec. 80-O of the Act or Sec. 80A did not provide for any such restriction and allowed the claim of the assessee for deduction u/s 80-O of the Act to the extent of gross total income. The Hon ble Bombay High Court affirmed the view of the Tribuna

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se property – ₹ 13,51,076/-, (ii) income from business – ₹ 68,18,56,583/-; and, income from other sources – ₹ 14,23,15,933/-. While computing the total income at ₹ 10,59,17,945/-, the Assessing Officer allowed deduction u/s 80IB(10) of the Act to the extent of ₹ 71,99,25,721/-, as claimed by the assessee. Subsequently, the Assessing Officer recorded reasons and issued notice u/s 148 of the Act dated 6.7.2012 reopening the assessment on the ground that certain income chargeable to tax had escaped assessment inasmuch as the deduction u/s 80IB(10) of the Act was liable to be restricted to ₹ 68,18,56,583/- being the income under the head business or profession . In the ensuing assessment the claim for deduction was scaled down, which we have dealt with on merits in the earlier part of this order. 11. Apart from assailing the action of the Assessing Officer on merits, the assessee company also canvassed before the CIT(Appeals) that issuing of notice of re

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o be pointed out that the impugned reassessment would tantamount to a mere change of opinion, which is impermissible in law. Further, the learned representative also pointed out that the reasons recorded by the Assessing Officer are on a wrong footing and therefore there is no justification for initiation of proceedings u/s 147/148 of the Act. In the course of arguments, reliance has been placed on the following decisions to assail the initiation of proceedings u/s 147/148 of the Act :- i) Sharp Designers and Engineers India Pvt. Ltd., ITA No. 525/PN/2013 dated 24.11.2014 (ITAT, Pune) ii) Shri Amitabh Bachchan, 349 ITR 76 (Bom) 13. On the other hand, the Ld. DR appearing for the Revenue has pointed out that there is no infirmity in the initiation of proceedings by issuance of notice u/s 147/148 of the Act inasmuch as the reasons have been duly recorded and further, at the stage of recording of reasons, the Assessing Officer has only to formulate a prima facie opinion. 14. We have caref

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r.w. s. 153C of the I. T. Act 1961, on 24.12.2009, assessing the total income of ₹ 10,59,17,950/- after allowing the deduction u/s 801B(10) of ₹ 71,99,25,721/-. The assessee has claimed deduction of ₹ 71,99,25,721/- u/s 80IB(10) of the Income Tax Act 1961 in the return. The assessee had income of ₹ 68,18,56,583/- under the head Business and Profession. Therefore the assessee has claimed and has been allowed deduction in excess of its business income. The amount of the excess deduction is ₹ 3,80,69,138/-. The total income of the assessee has therefore been underassessed by the same amount. The deduction u/s 80IB(10) of the I.T. Act 1961, is allowable only against the business income of the assessee. The said deduction is allowable in the case of undertaking, developing & building housing projects approved before the 31st day of March 2008 by local authority subject to compliance of specific terms and conditions as provided in sub-clauses of the said se

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r profession . It is a trite law that reason to believe referred to in Sec. 147 of the Act is one which is prudent and plausible in law and not based on any misconception either in law or on facts. In the present case, the reasons recorded clearly suggest that Assessing Officer is under a misconception in inferring that there is an excessive grant of deduction u/s 80IB(10) of the Act. Ostensibly, the proposition in the mind of the Assessing Officer is not borne out of the bare phraseology of the relevant provisions, as we have seen in the earlier part of this order, and rather, it is contrary to the legal position approved by the Hon ble Bombay High Court in the case of J.B. Boda & Co. Pvt. Ltd. (supra). At this point, we may note that the aforesaid view of the Hon ble Bombay High Court is also in consonance with its decisions in the case of Eskay K N IT (India) Ltd. vide ITA No. 184 of 2007 dated 25.3.2010 and in the case of Tridoss Laboratories Ltd., 328 ITR 448 (Bom). 15. In vie

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 18-5-2016 Last Replied Date:- 30-12-1899 – Frequently Asked Questions (FAQs) on GST and their answers which would help the readers to know and understand about the concept and nuances of proposed Goods and Services Tax (GST) and its models. These FAQs have been compiled with sole objective of providing a means of better understanding of GST. For details, readers may refer to Government portals / literature. Q.37 In GST regime, Information Technology network will be crucial as most of the procedures would be automated. How it will be done? Well-designed and well-functioning Information Technology (IT) infrastructure facility would be a precondition and pre-requisite for smooth administration of taxpayers, processing of returns, controlling collections, making refunds, auditing taxpayers, levying penalties etc. in the new regime. On the IT front, all stakeholders had agreed for a common PAN-based taxpayer ID, a common ret

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on tax payers and tax authorities availing its services. The GSTN will provide a front end portal to administer the Inter – State Taxation (IGST). The above network will work as a clearing house mechanism which will pool all the information about taxes levied on the Inter-State transactions and provide data on the amounts to be transferred to the destination state for ensuring seamless input tax credit. GSTN has been entrusted with the responsibility to develop, operate and maintain a common GST portal which would provide a common and shared IT infrastructure between Central and State Governments, Banks, CBEC, Reserve Bank of India etc. For the purpose of simplicity for taxpayer, uniformity of tax administration, it is also proposed to have digitization of all documents and automation of related processes such as common PAN-based registration; common standardized return for all taxes (with different account heads for CGST, SGST, IGST); common standardized challan for all taxes (with di

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ion had been taken on this. For a decision, this provision also requires a two-third majority in the Empowered Committee. However, Sub-committee on GST rates headed by CEA( MOF) has not found favour with proposed additional tax. Q.40 Are there any disadvantages of additional tax ? Ans. The 1% tax will increase cost of inter-state job work of goods. The 1% tax will increase cost of inter-state transactions and hence, to that extent, will discourage inter-state movement of goods. Thus, it will be hindrance to inter-state movement of goods. It is yet to be seen whether 1% additional tax will be imposed only at the initial movement from originating State or at each inter-state movement of same goods. Q.41 Will cross utilization of credits between goods and services be allowed under GST regime? Ans. Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross util

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l also be phased out, the final net burden of tax on goods, under GST would, in general, fall. Since there would be a transparent and complete chain of set-offs, this will help widening the coverage of tax base and improve tax compliance. This may lead to higher generation of revenues which may in turn lead to the possibility of lowering of average tax burden. Q.43 In case of transfer of business (change in the constitution), whether the input tax credit would be available to transferee? Ans. Where there is a change in the constitution of a taxable person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provision for transfer of liabilities, the said taxable person shall be allowed to transfer the input tax credit that remains unadjusted in its books of accounts to such transferred, sold, merged, demerged, leased or amalgamated business in the manner prescribed. Q.44 If any loss to states arises due to the introduction of GST , wou

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FEMA – 68 [(1)/23(R) – Dated:- 12-5-2016 – RBI/2015-16/395 A.P. (DIR Series) Circular No.68 [(1)/23(R)] May 12, 2016 To All AD Category – I Authorised Dealer Banks Madam/ Sir Foreign Exchange Management (Exports of Goods and Services) Regulations, 2015 Attention of Authorised Dealers (ADs) is invited to A.D.(M.A. Series) Circular No. 11 dated May 16, 2000 in terms of which ADs were advised of various Rules, Regulations, Notifications/ Directions issued under the Foreign Exchange Management Act, 1999 (hereinafter referred to as the Act). On a review it is felt necessary to revise the regulations issued under the Foreign Exchange Management (Exports of Goods and Services) Regulations, 2000 as amended from time to time. Accordingly, in consul

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 9-5-2016 – Frequently Asked Questions (FAQs) on GST and their answers which would help the readers to know and understand about the concept and nuances of proposed Goods and Services Tax (GST) and its models. These FAQs have been compiled with sole objective of providing a means of better understanding of GST. For details, readers may refer to Government portals / literature. Q.31 What is the scope of composition and compounding scheme under GST? Ans. A Composition/Compounding Scheme will be an important feature of GST to protect the interests of small traders and small scale industries. The Composition/Compounding scheme for the purpose of GST should have an upper ceiling o

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reduction in revenue of the government. This adjusted Rate is termed as Revenue Neutral Rate (RNR). According to Sub-committee on GST rates headed by CEA (MOF), the term Revenue Neutral Rate (RNR) will refer to that single rate, which preserves revenue at desired (current) levels. In practice, there will be a structure of rates, but for the sake of analytical clarity and precision it is appropriate to think of the RNR as a single rate. It is a given single rate that gets converted into a whole rate structure, depending on policy choices about exemptions, what commodities to charge at a lower rate (if at all), and what to charge at a very high rate. Q.33 How is Revenue Neutral Rate different from standard rate of GST ? Ans. The Revenue Neutr

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. For example, a legal entity with single registration within a State would have 1‟ as 13th digit of the GSTIN. If the same legal entity goes for a second registration for a second business vertical in the same State, the 13th digit of GSTIN assigned to this second entity would be 2‟.This way 35 business verticals of the same legal entity can be registered within a State. 14th digit of GSTIN would be kept BLANK for future use. Q.35 How will Goods and Service Tax return filing be done? Ans. Common periodicity of returns for a class of taxpayers would be enforced. There will be different frequency for filing of returns for different class of taxpayers, after payment of due tax, either prior to or at the time of filing return. The

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VAT and Sales Tax – Waiver of pre-deposit under APGST Act – It is always open to the petitioner to file appropriate proceedings before ADC seeking stay in the appeal filed or by filing a separate appl

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VAT – Delhi – 3/2016-17 – Dated:- 29-4-2016 – DEPARTMENT OF TRADE AND TAXES Govt. of NCT of Delhi (POLICY BRANCH) VYAPAR BHAWAN: I.P. ESTATE, NEW DELHI No. F.3(668)/Policy/VAT/2016/145-151 CIRCULAR NO. 03 of 2016-2017 Dated 29/04/2016 Sub:- Competition amongst the officers on relevant legal provisions, procedures and guidelines. To motivate the officers to acquire knowledge of the Delhi Value Added Tax Act, 2004, Central Sales Tax Act, 1956, other relevant Acts, Rules and provisions and to incu

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 28-4-2016 – Frequently Asked Questions (FAQs) on GST and their answers which would help the readers to know and understand about the concept and nuances of proposed Goods and Services Tax (GST) and its models. These FAQs have been compiled with sole objective of providing a means of better understanding of GST. For details, readers may refer to Government portals / literature. Q.23 What is Central Goods and Services Tax (CGST) Ans. Under the Central Goods and Services Tax, the two levels of Government would combine their levies in the form of a single National GST, with appropriate revenue sharing arrangements among them. The tax could be controlled and administered by the Central Government. There are several models for such a tax. Australia is the most recent example of a National GST, where it is levied and collected by the Centre, but the proceeds are allocated entirely to the States. In the case of a Central GST (w

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ods and / or services in the course of inter-state trade or commerce. IGST Act shall apply to whole of India. Q.26 How will IGST work ? Ans. Central Government would levy IGST (which would be CGST plus SGST) on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services. The inter-State seller will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The Importing dealer will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. Q.27 How will revenue from IGST be apportioned between Centre and States ? Ans. Revenue from IGST will be apportioned among Union and States by Parliament on basis of recommendation of Goods and Service Tax Council [Proposed

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imultaneously under Central GST (CGST) and State GST (SGST)? Ans. The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except the exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of CENVAT. While the location of the supplier and the recipient within the country is immaterial for the purpose of CGST, SGST would be chargeable only when the supplier and the recipient are both located within the State. Illustration I: Suppose hypothetically that the rate of CGST is 10% and that of SGST is 10%. When a wholesale dealer of steel in Uttar Pradesh supplies steel bars and rods to a construction company which is also located within the same State for , say ₹ 100, the dealer would charge CGST of ₹ 10 and SG

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GST of ₹ 10 as well as SGST of ₹ 10 to the basic value of the service. He would be required to deposit the CGST component into a Central Government account while the SGST portion into the account of the concerned State Government. Of course, he need not again actually pay ₹ 20 (Rs. 10+Rs. 10) in cash as it would be entitled to set-off this liability against the CGST or SGST paid on his purchase (say, of inputs such as stationery, office equipment, services of an artist etc). But for paying CGST he would be allowed to use only the credit of CGST paid on its purchase while for SGST he can utilize the credit of SGST alone. In other words, CGST credit cannot, in general, be used for payment of SGST. Nor can SGST credit be used for payment of CGST. Q.30 What is the rate structure proposed under GST? Ans. The Empowered Committee has decided to adopt a two-rate structure -a lower rate for necessary items and items of basic importance and a standard rate for goods in general.

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 26-4-2016 – Frequently Asked Questions (FAQs) on GST and their answers which would help the readers to know and understand about the concept and nuances of proposed Goods and Services Tax (GST) and its models. These FAQs have been compiled with sole objective of providing a means of better understanding of GST. For details, readers may refer to Government portals / literature. Q.15 Is there going to be any threshold limit for exemption under GST regime? Ans. Yes, there is likelihood of threshold exemption limit in GST based on gross turnover as in present case. Centre and few states are in favour of ₹ 25 lakh limit while some other states want a lower limit of ₹

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rent State VAT Acts below which VAT is not applicable varies from State to State. A uniform State GST threshold across States is desirable and, therefore, it has been considered that a threshold of gross annual turnover of ₹ 10 lakh both for goods and services for all the States and Union Territories might be adopted with adequate compensation for the States (particularly, the States in North-Eastern Region and Special Category States) where lower threshold had prevailed in the VAT regime. Keeping in view the interest of small traders and small scale industries and to avoid dual control, the States also considered that the threshold for Central GST for goods may be kept ₹ 1.5 Crore and the threshold for services should also be a

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E-filing of periodical returns E-payment of tax Common tax period National portal for access of information National Agency Trained and well equipped staff. Q.20 Why is Dual GST required? Ans. India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise resources. A dual GST will, therefore, be in keeping with the Constitutional requirement of fiscal federalism. Q.21 What is meant by dual GST ? Ans. Dual GST signifies that GST would be levied by both, the Central Government and the St

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 20-4-2016 – Frequently Asked Questions (FAQs) on GST and their answers which would help the readers to know and understand about the concept and nuances of proposed Goods and Services Tax (GST) and its models. These FAQs have been compiled with sole objective of providing a means of better understanding of GST. For details, readers may refer to Government portals / literature. Q.7 How will the place of supply be determined? Ans. It is important to determine whether a transaction is intra-State or inter-State as GST (i.e. CGST plus SGST or IGST, as the case may be) will be applicable accordingly. For goods , the place of supply would be location where the goods are delivered. For services the place of supply would be the recipient location. However, there are multiple scenarios such as for supply of services in relation to immovable property, wherein this principle will not apply and specific rules will prevail. Thus, th

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protection favouring imports which will boost domestic manufacturing. Also, lagging regions will catch up with more advanced regions. Getting the design of the GST right is therefore critical. Specifically, the GST should aim at tax rates that protect revenue, simplify administration, encourage compliance, avoid adding to inflationary pressures, and keep India in the range of countries with reasonable levels of indirect taxes. Q .10 How will GST benefit industry, trade and agriculture? Ans. The GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture. Q.11 How will GST benefit the exporters? Ans. The su

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#8377; 10 lakh both for goods and services for all the States and Union Territories may be adopted with adequate compensation for the States (particularly, the States in North-Eastern Region and Special Category States) where lower threshold had prevailed in the VAT regime. Keeping in view the interest of small traders and small scale industries and to avoid dual control, the States considered that the threshold for Central GST for goods may be kept at ₹ 1.5 crore and the threshold for services should also be appropriately high. This raising of threshold will protect the interest of small traders. A Composition scheme for small traders and businesses has also been envisaged under GST as will be detailed in Answer to Question 14. Both these features of GST will adequately protect the interests of small traders and small scale industries. Q.13 How will GST benefit the common consumers? Ans. With the introduction of GST, all the cascading effects of CENVAT and service tax will be mo

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 16-4-2016 Last Replied Date:- 19-4-2016 – Frequently Asked Questions (FAQs) on GST and their answers which would help the readers to know and understand about the concept and nuances of proposed Goods and Services Tax (GST) and its models. These FAQs have been compiled with sole objective of providing a means of better understanding of GST. For details, readers may refer to Government portals / literature. Q.1 What is Constitutional Amendment Bill in relation to GST? Ans. The Union Government in third week of December, 2014 (19 December, 2014) introduced Constitution (122nd Amendment) Bill, 2014 in Parliament which when passed shall pave the way for introduction of proposed Goods and Service Tax (GST) in India. This is an improvised version of lapsed 115th Amendment Bill of 2011. The Bill on passage would enable the Central Government and the State Governments to levy GST. This tax (GST) shall be levied concurrently by

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er, the Constitution also does not empower the States to impose tax on imports. Therefore, it is essential to have Constitutional Amendments for empowering the Centre to levy tax on sale of goods and States for levy of service tax and tax on imports and other consequential issues. As part of the exercise on Constitutional Amendment, there would be a special attention to the formulation of a mechanism for upholding the need for a harmonious structure for GST along with the concern for the powers of the Centre and the States in a federal structure. Q. 3 What is cascading effect and how GST will address this? Ans . A tax that is levied on a good at each stage of the production process up to the point of being sold to the final consumer. Cascading effect of taxes is one of the major distortions of the Indian taxation regime. Federal structure of our democracy, allows both states and center to levy taxes separately and this has caused this cascading. While Income tax, Excise duty, Service t

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system of VAT compare? Ans. In principle, there is no difference between present tax structure under VAT and GST as far as the tax on goods is concerned because GST is also a form of VAT on Goods and services. Here at present the sales tax, with an exception of CST, is a VAT system and in case of service tax the system also has the Cenvat credit system hence both sales tax and service tax are under VAT system in our country. At present the goods and services are taxed separately but in GST the difference will be vanished. The overall system of GST is very much similar to the VAT, which can be considered as first step towards GST. Let us see the VAT implementation schedule of various states: Sr. no States Date of Levy of VAT Number of States 1 Haryana 1-4-2003 1 2 Andhra Pradesh, West Bengal, Kerala, Karnataka, Orissa, NCT Delhi, Tripura, Bihar, Arunachal Pradesh, Sikkim, Punjab, Goa, Mizoram, Nagaland, Jammu and Kashmir, Manipur, Maharashtra, Himachal Pradesh, Assam and Meghalaya. 1-4-

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ns within a State. The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States. GST will be a destination-based tax. All SGST on the final product will ordinarily accrue to the consuming State. Q.6 When will the liability to pay GST arise? Ans. The payment liability of CGST and SGST will arise at the time of supply as determined for goods and services. The provisions stipulate payment of GST at the earliest in case of: Goods: On removal of goods or receipt of payment or issuance of invoice or date on which buyer shows receipt of goods Services: On issuance of invoice or receipt of payment or date on which recipient shows receipt of services Given that there could be many parameters in determining time of supply, maintaining reconciliation between revenue as per financials and as per GST could

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 9-4-2016 – GST Structure We are going to have a dual GST model. The Center and the States both, will levy GST on supply of goods and services. On Supply of goods and services in the course of Inter-state only Center will levy and collect taxes (IGST) which will be apportioned between Centre and States based on the recommendation of GST Council. The Center will have power to make place of supply rules in this regard. On supply of goods and services in the course of or International trade or commerce, states will not have any power to levy and collect taxes. For the first two years under GST (or as GST Council would recommend), 1% additional tax apart from GST will be levied on inter-state sale of goods which will be assigned to the state of origin of supply of goods. The rules regarding the place of origin will be formed by the Parliament. The Central Government would also have power to grant exemption to any goods from

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ay of notification, after enactment. For enactment, it has to be passed by two-third majority by both houses of the Parliament of those present and simple majority of total membership of both houses. It has to be then approved by one-half of the state Governments, i.e. atleast 15 states. The said Bill has been passed by Lok Sabha on 6-5-2015 but could not be passed by Rajya Sabha. The same has now been referred to the select committee of the Rajya Sabha. Fate of Bill in Parliament It may be noted that 122nd Amendment Bill has since been passed by the Lok Sabha in May 2015 and was referred to the Select Committee by Rajya Sabha on 12.05.2015 . Select Committee Report tabled in Rajya Sabha The Select Committee of Rajya Sabha has since tabled its report on GST Bill [i.e., Constitution (122nd) Amendment Bill, 2014] on 22.07.2015. While it endorsed majority of provisions, Congress, AIADMK and Left parties have opposed the GST Bill in its existing form. The Select Committee has suggested tha

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upon the GST Council, it would be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services. While construing above definition of Band one has to ensure that harmonized structure of GST rates must not be altered. The GST Council is also tasked with making recommendations on taxes that would be subsumed by the Central and State GST laws. It has been recommended that in the drafting of state GST laws, revenue sources of Panchayats, Municipalities etc. must be protected. State governments must also take measures to ensure adequate revenue flow to local bodies. Voting pattern The Committee found no merit in altering the voting pattern proposed in the Bill. Dispute Settlement Authority The Bill states that the GST Council would decide upon the modalities to resolve disputes. The Committee has stated that the creation of a separate dispute settlement authority would hamper the functioning of the GST

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f 1% additional tax in its present form may lead to cascading effect of taxes. Therefore, it has strongly recommended that following Explanation should be added for word supply : Supply: All forms of supply made for a consideration. Compensation to States The Bill proposed that the Parliament may compensate States for loss of revenue for a period which may be extended to five years. The Committee felt that there was no justification for substitution of the word may with shall . It, has however, recommended that compensation should be provided for whole period of five years. GST rates of banking services The Committee recommended that the GST rate for the banking industry should be minimum, to ensure international competitiveness. If possible, banking services could be outside the purview of GST. GSTN The GSTN is the comprehensive back end infrastructure network for the management of tax data and reporting of the GST. The Committee noted that the Non Government shareholding in GSTN is d

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rn in the GST Council, by giving states three- fourth of the weighted votes, and the centre one- fourth. Cabinet clears GST Amendments The Union Cabinet on 29.07.2015 approved changes suggested by a Rajya Sabha Select Committee to the Goods & Services Tax Amendment Bill , including compensating the States for five years for loss of revenue. Sharing of GST Revenue with States The State Governments have not objected to the proposed formula of the Union Government for sharing of revenue with States that would be earned as Goods and Service Tax (GST). Under the proposed GST regime, both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services for consideration. Centre would levy and collect Central Goods and Services Tax (CGST) and States would levy and collect the State Goods and Service Tax (SGST) on all transactions within a State. The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on

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Central Excise – Cross utilization of the credit on excuse duty and service tax denied – the cross utilization of credit on goods and services being not covered by any restrictive provision, leave alo

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TRADE NOTICE NO.-02/2016 Dated:- 30-3-2016 Trade Notice – Circulars – GST – आयुक्त का कार्यालय केन्द्रीय उत्पाद शुल्क सीमा शुल्क एंव सेवाकर ११३ / ४ संजय प्लेस , आगरा C. No. V(30)47/Tech/Budget/2016-17 DATED: 30.03.2016

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VAT and Sales Tax – Adequate rebut of Legal presumption – Deemed sale drawn by the authorities under Section 46(15)(d) of the AGST Act – the authorities have failed to discharge the obligation – HC – TMI Updates – Highlights

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 26-3-2016 – Amendment of Union List List I of Seventh Schedule would stand amended as follows: Entry 84 relating to excise duty would deal with duties of excise on the following goods manufactured or produced in India, namely:- (a) petroleum crude; (b) high speed diesel; (c) motor spirit (commonly known as petrol); (d) natural gas; (e) aviation turbine fuel; and (f) tobacco and tobacco products. Petroleum products and tobacco will continue to attract excise duty. However, the Bill specifically provides that petroleum products might not attract GST. However, at a later stage the GST Council might decide to levy GST on petroleum products. Entries 92 (Taxes on the sale or purch

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ntry 55 (Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast by radio or television) shall be omitted. Entry 62, which deals with entertainment/amusement tax would be substituted, such that taxes on entertainments and amusements can be levied by a Panchayat or a Municipality or a Regional Council or a District Council. The Bill provides that the import of goods or services will be deemed as supply of goods or services or both, in the course of inter-state trade or commerce and thus it will attract IGST (CGST plus SGST). Thus, import of goods will attract Basic Customs Duty and IGST, while import of services will attract IGST. Further, it appears that alcohol for human consumption will b

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Union territories, shall not form part of the Consolidated Fund of India and be deemed to have been assigned to the States from where the supply originates. The Government of India may, where it considers necessary in the public interest, exempt such goods from the levy of this additional tax. The Parliament may, by law, formulate the principles for determining the place of origin from where supply of goods take place in the course of inter State trade or commerce. Amendment of Sixth Schedule – Entertainment tax, etc. Sixth Schedule deals with provisions as to the Administration of Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram. New Para 8(3)(e) empowers the District Council for an autonomous district to levy and collec

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-3-2016 – What is proposed Constitutional Amendment A newly inserted article 246A in the Constitution shall provide for special provision with respect to GST. According to the Bill, the following important clauses of the Bill are worth noting: Clause 246A The Legislature of every State shall have power to make laws with respect to goods and services tax imposed by the Union or by such State. Parliament will have exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Clause 269A Goods and services tax on supplies in the course of inter-State trade or c

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dred and Twenty-second Amendment) Act, 2014, by order, constitute a Council to be called the Goods and Services Tax Council. Clause 279A The Goods and Services Tax Council shall make recommendations to the Union and the States on- the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax; the goods and services that may be subjected to, or exempted from the goods and services tax; model Goods and Services Tax Laws, principles of levy, apportionment of integrated Goods and Services Tax and the principles that govern the place of supply; the threshold limit of turnover below which goods and services may be exempted from goods and services tax; the rates including

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nown as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. The Goods and Services Tax Council shall determine the procedure in the performance of its functions. The Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendations. Meaning of Goods / Services / GST The amendment Bill defines these terms- goods includes all materials, commodities, and articles; [article 366 (12)] services means anything other than goods: [article 366 (26A)] go

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 15-3-2016 – The Constitution (115th Amendment) Bill, 2011 proposed to give powers to both, the centre and the states to make laws with respect to GST. The Bill was a necessity because, presently, the Union can not impose excise duty beyond the manufacturing stage and states cannot levy a tax on services. It sought to decide on tax rates, exemptions and threshold limits. It will also make recommendations on taxes, cesses and surcharges by the centre, states and local bodies, which may be subsumed in GST. Constitution (122nd Amendment) Bill, 2014 The Union Government in third week of December, 2014 (19 December, 2014) introduced Constitution (122nd Amendment) Bill, 2014 in Parliament which when passed shall pave the way for introduction of proposed Goods and Service Tax (GST) in India. This is an improvised version of lapsed 115th Amendment Bill of 2011. Contrary to the general perception amongst many quarters that this B

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ution (One Hundred and Twenty-Second Amendment) Bill, 2014 was introduced in the Lok Sabha on December 19, 2014. The following is the gist of amendments proposed by this Bill: The Bill seeks to amend the Constitution to introduce the goods and services tax (GST). Consequently, the GST subsumes various central indirect taxes including the Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. It also subsumes state Value Added Tax (VAT)/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. Concurrent powers for GST: The Bill inserts a new Article 246A in the Constitution to give the central and state governments the concurrent power to make laws on the taxation of goods and services Integrated GST (IGST): However, only the centre may levy and collect GST on supplies in the course of inter-state trade or commerce. The tax collected would be divided betw

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nce, and the Minister in charge of Finance or Taxation or any other, nominated by each state government. Functions of the GST Council: These include making recommendations on: taxes, cess and surcharges levied by the centre, states and local bodies which may be subsumed in the GST; goods and services which may be subjected to or exempted from GST; model GST laws, principles of levy, apportionment of IGST and principles that govern the place of supply; the threshold limit of turnover below which goods and services may be exempted from GST; rates including floor rates with bands of GST; special rates to raise additional resources during any natural calamity; special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and Any other matters relating to the goods and services tax, as the Council may decide. The Goods and Service Tax Council shall recommend the date from which the goods and

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f the Consolidated Fund of India and be deemed to have been assigned to the States from where the supply originates. Compensation to states: Parliament may by law provide for compensation to states for revenue losses arising out of the implementation of the GST, on the GST Council s recommendations. This would be up to a five-year period. The Government of India may where it considers necessary in the public interest, exempt such goods from the levy of tax. Both Centre and States will simultaneously levy GST across the value chain. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. There will be seamless flow of input tax credit from one State to another. Proceeds of IGST will be apportioned among the States. GST will be a destination

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 11-3-2016 – Steps Involved in GST Introduction Following steps are needed on political, administrative and technological fronts for smooth implementation of GST: Constitutional amendments (pending in Parliament (Rajya Sabha); Standing Committee Report submitted; draws opposition from Congress) Drafting of GST law (process started) Strong political commitment (looks a distant reality in present political set up). Arriving at common / general consensus on major issues including political agreement (efforts are on through Empowered Committee / negotiations ) Setting up a high level committee for monitoring the project of GST (Empowered committee is in place). Preparing a blueprint/road map for GST (to be made public) Creating a conducive environment for GST (slow efforts) Centre-States coordination (efforts on, onus on Empowered Committee) Consolidation of Central Excise, Service Tax and VAT on imports/exports Identificati

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nces decision to introduce VAT in India. Formation of Empowered Committee on VAT 2002 Task Force on Indirect Taxes report headed by Kelkar CENVAT introduced on all commodities at central level 2003 VAT introduced in first Indian State of Haryana 2005 VAT in 24 States/UTs including Punjab, Chandigarh, HP, J&K and Delhi. 2006 VAT implemented in 5 more States including Rajasthan. 2007 FM announces GST introduction in India from April 01, 2010. Parthasarathi Shome submits a study paper on GST. Empowered Committee of State Finance Ministers constitutes the Joint Working Group. VAT implemented in Tamil Nadu & Puducherry. Central Sales Tax (CST) phase out starts, CST cut to 3%. Joint Working Group set up for proposing GST roadmap and structure. 2008 VAT introduced in the last Indian State of UP from January 01, 2008. EC finalises its views on a broad GST structure with consensus on Dual GST (Central & State GST), separate legislation, levy and administration. CST reduced to 2% 200

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xes proposed to be subsumed under GST, whether collected by States or local bodies. Petroleum and petroleum products to be subsumed in GST, with nominal or zero-rated tax. GST compensation to States pegged at around ₹ 11,000 crore. Centre to provide three year compensation on the revenue loss incurred by States after GST roll-out. December : GST Constitutional Amendment Bill moved in Lok Sabha 2015 06.05.2015 Lok Sabha passes GST Bill 12.05.2015 Bill on GST not passed by Rajya Sabha ; referred to Select Committee 17.06.2015 Committees Constituted to recommend tax rates and to monitor progress of IT preparedness / mechanism of GST / drafting of rules. 22.07.2015 Select Committee of Rajya Sabha tabled its report on GST Bill 29.07.2015 Union Cabinet approves Select Committee recommendations 11.10.2015 Discussion papers to on business processes on registration, payment, returns and refunds under GST made public 03.12.2015 Committee on Tax rates submits reports ? Revised draft to be p

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 10-3-2016 – Union Budget for F.Y. 2016-17 is a complete miss so far as Goods and Services Tax is concerned, more so when everyone was expecting some announcement on GST in this Budget. The Budget speech in its opening paragraphs highlights the achievements of last three years including economic consolidation, growth and other strengths besides counting on the failures of previous Government but it lacks direction, vision, seriousness and commitment towards migrating to GST. It is regretful that with this broader focus in mind, Government has failed to touch upon the way forward for GST in India and thus missing the unique opportunity in the third Budget (out of five) of the

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se for GST regime. Textiles, readymade branded garments, edible oils, jewellery etc have been subjected to excise duty. Many exemptions in Service Tax have also been withdrawn and negative list pruned. On the fillip side, Budget has introduced new cesses which goes against the very scheme of proposed GST. Infrastructure cess has been levied as excise duty on vehicles w.e.f. 1st March 2016 (i.e., already levied) for the purpose of building traffic free roads and pollution free environment. This cess would be from 1% to 4% on various types of specified vehicles excluding taxies, three wheelers, ambulance, vehicles use by handicapped persons etc. Another cess called Krishi Kalyan Cess (KKC) @ 0.50 percent has been levied an all taxable service

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ST in still under preparation and is expected to be put up in public domain before finalization. It is an irony that even after twenty five years of starting economic reforms in India since 1991, we have not been able to have required tax reforms in place. On one hand we talk of good governance and talk of slogans like 'ek bharat, shreshta bharat' but on the other hand, fail to address the issue of deadlock on GST which is grossly detrimental to the economic interests of the nation. It also reflects weak political will and non-seriousness of all political parties. It would be in fitness of things that the Finance Minister comes out with a paper laying down clear cut road map on GST and its strategy to take it to logical conclusion i

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Companies Law – Started By: – Shyam Naik – Dated:- 6-3-2016 Last Replied Date:- 18-9-2016 – Dear Experts, A newly incorporated Pvt Ltd Company had taken interest free advances for from its holding company during 2012-13. the advance was taken for meeting its expenses. The Pvt Ltd Company was engaged in sourcing long term coal supply for upcoming power plant of fellow subsidiary. The plant is yet to be operational. Whether the amount shall be treated as deposit under the Companies Act 2013. Kind

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 4-3-2016 Last Replied Date:- 22-3-2016 – Organizational Structure proposed under GST The organizational structure under the GST regime should be on functional basis rather than on territorial jurisdiction basis. The present organizational structure is based on territorial jurisdiction and one office i.e. Range handles all the different functions pertaining to units falling under their jurisdiction. Thus, one office handles the various functions of registration, audit, refund, adjudication, legal, recovery, taxpayer services etc. Under GST, it is proposed that different divisions of an office should handle different functions of registration, audit, refund, adjudication, legal, recovery, taxpayer services etc. This has been done to encourage specialization as well as better organizational structure. The new structure would be having: Organizational Structure for GST Audit Commissionerate Anti-Evasion Commissionerate GST

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lized groups may provide policy inputs to the Board also. It was proposed that the entire staff of Audit Commissionerate is not required to be centralized at the headquarters. Anti-Evasion Commissionerate Anti-evasion work is done by three types of teams – (i) Anti-evasion wing of the Commissionerate Headquarters; (ii) Preventive units of the Divisions; and (iii) Directorate General of Central Excise Intelligence (DGCEI). Out of the three, the DGCEI is carrying out the work of intelligence and investigation at national level. It is top-ranked of three as regards quality of cases booked, value of goods and amount of duty involved in offence cases. Proposal for GST It is proposed that the anti-evasion work should be handled by a more specialized and exclusive Anti-evasion Commissionerate. In case of certain states where there are smaller numbers of taxpayers like in North-eastern states, Uttarakhand etc., one anti-evasion Commissionerate may have jurisdiction over more than one State. In

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ataraman – The Reply = SpontaneousGST is, as generally understood, a national code, intended and expected to be implemented and enforced uniformly across the country, the state barriers not coming in the way and leading to any influence / impairment in doing so. Perhaps, while one is not quite clear, the learned writer, it appears, is inclined to the said view as is gathered, though not made explicit, from the very opening sentence of the write-up. Should that be so, and if that were the view finding favour with the experts at large (open to correction, if wrong), then the matter might be worthwhile taking up with the highest authority , sooner than later, to the end of having the entire scheme of things as presently envisaged , revamped, appropriately, beforehand.The learned expert may wish to bring out sufficient clarity, for the common good. – Reply By Dr. Sanjiv Agarwal – The Reply = Yes, This call should be taken by the empowered committee and professional bodies and apex chambers

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