Author: admin_gst

Section 22 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 22 – 22. Manner of recovery of credit distributed in excess Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 21 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipient(s) along wit

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Section 18 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 18 – 18. Availability of credit in special circumstances (1) A person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. (2) A person, who takes re

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IDED that the credit on capital goods shall be reduced by such percentage points as may be prescribed in this behalf (4) Where an exempt supply of goods or services by a registered taxable person becomes a taxable supply, such person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable: PROVIDED that the credit on capital goods shall be reduced by such percentage points as may be prescribed in this behalf. (

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registered taxable person who has availed of input tax credit switches over as a taxable person for paying tax under section 9 or, where the goods and / or services supplied by him become exempt absolutely under section 11, he shall pay an amount, by way of debit in the electronic credit or cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods, reduced by such percentage points as may be prescribed, on the day immediately preceding the date of such switch over or, as the case may be, the date of such exemption: PROVIDED that after payment of such amount, the balance of input tax credit, if any, lying in his electronic c

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Recovery of Input Tax Credit and Interest thereon – Section 19 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] –

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Section 16 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 16 – CHAPTER V INPUT TAX CREDIT 16. Eligibility and conditions for taking input tax credit (1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and within the time and manner specified in section 44, be entitled to take credit of input tax charged on any supply of goods or services to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person: PROVIDED that credit of input tax in respect of pipelines and telecommunicatio

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him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other taxpaying document(s) as may be prescribed; (b) he has received the goods and/or services; (c) the tax charged in respect of such supply has been actually paid to the account of the appropriate Government, either in cash or through utilization of input tax credit admissible in respect of the said supply; and (d) he has furnished the return under section 34: PROVIDED that where the goods against an invoice are received in lots or instalments, the registered taxable person shall be entitled to take credit upon receipt of the last lot or installment: PROVIDED FURTHER that where a recipient fails to pay to the suppli

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Section 17 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 17 – 17. Apportionment of credit and blocked credits (1) Where the goods and/or services are used by the registered taxable person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. (2) Where the goods and / or services are used by the registered taxable person partly for effecting taxable supplies including zero-rated supplies under this Act or under the IGST Act, 2016 and partly for effecting exempt supplies under the said Acts, the amount of cre

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option once exercised shall not be withdrawn during the remaining part of the financial year. (4) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1), (2), (3) and (4) of section 18, input tax credit shall not be available in respect of the following: (a) motor vehicles and other conveyances except when they are used (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such vehicles or conveyances; (ii) for transportation of goods. (b) supply of goods and services, namely, (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic a

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works contract service; (d) goods or services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in course or furtherance of business; Explanation 1.- For the purpose of this clause, the word construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property. Explanation 2.- Plant and Machinery means apparatus, equipment, machinery, pipelines, telecommunication tower fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes land, building or any other civil structures. (e)

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Section 14 – Draft-Bills-Reports – TIME AND VALUE OF SUPPLY – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 14 – 14. Change in rate of tax in respect of supply of goods or services Notwithstanding anything contained in section 12 or section 13, the time of supply, in cases where there is a change in the rate of tax in respect of goods or services, shall be determined in the following manner, namely:- (a) in case the goods or services have been supplied before the change in rate of tax – (i) where the invoice for the same has been issued and the payment is also received after the change in rate of tax, the time of supply shall be the date of receipt of payment or the date of issue of

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issued and the payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or (iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice: PROVIDED that the date of receipt of payment shall be the date of credit in the bank account when such credit in the bank account is after four working days from the date of change in the rate of tax. Explanation.- For the purpose of this section, the date of receipt of payment shall be the date on which the payment is entered in the books of accounts of the supplier or the

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Section 24 – Draft-Bills-Reports – ADMINISTRATION – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 24 – [24. Appointment of Officers of SGST as proper officer in certain circumstances The officers appointed under the SGST Acts shall, to such extent and subject to such conditions, as may be prescribed in the rules made in this behalf, be the proper officers for the purposes of sections (………..) of this Act.] ************* –

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Section 23 – Draft-Bills-Reports – ADMINISTRATION – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 23 – 23. Appointment of officers under the Integrated Goods and Services Tax Act, 2016 (1) The Board may appoint such persons as it may think fit to be officers under the Integrated Goods and Services Tax Act, 2016. (2) Without prejudice to the provisions of sub-section (1), the Board may authorize a Principal Chief Commissioner/Chief Commissione

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Section 15 – Draft-Bills-Reports – TIME AND VALUE OF SUPPLY – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 15 – 15. Value of taxable supply (1) The value of a supply of goods and/or services shall be the transaction value, that is the price actually paid or payable for the said supply of goods and/or services where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include: (a) any taxes, duties, cesses, fees and charges levied under any statute, other than the {SGST Act/the CGST Act} and the Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016, if charged sep

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ded by the Central and State governments; Explanation.- The amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value of the supply shall not include any discount that is given: (a) before or at the time of the supply provided such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, provided that: (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit has been reversed by the recipient of the supply as is attributable to the discount on the basis of document issued by the supplier. (4) Wher

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Section 22 – Draft-Bills-Reports – ADMINISTRATION – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 22 – 22. Classes of officers under the Integrated Goods and Services Tax Act, 2016 (1) There shall be the following classes of officers under the Integrated Goods and Services Tax Act, 2016 namely; (a) Principal Chief Commissioners of IGST or Principal Directors General of IGST, (b) Chief Commissioners of IGST or Directors General of IGST, (c) Pr

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Section 21 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 21 – 21. Import of services or inter-State supply of goods and/or services made on or after the appointed day Notwithstanding anything contained in section 12 and 13 of the CGST Act, 2016 import of services or inter-State supply of goods and/or services made after the appointed day shall be liable to tax under the provisions of this Act

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Section 13 – Draft-Bills-Reports – TIME AND VALUE OF SUPPLY – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 13 – 13. Time of supply of services (1) The liability to pay CGST/SGST on services shall arise at the time of supply, as determined in terms of the provisions of this section. (2) The time of supply of services shall be the earlier of the following dates, namely:- (a) the date of issue of invoice by the supplier or the last date on which he is required, under section 28, to issue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply: PROVIDED that where the supplier of taxable service receives an amount up

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time of supply shall be the earlier of the following dates, namely- (a) the date on which the payment is made, or (b) the date immediately following sixty days from the date of issue of invoice by the supplier: PROVIDED that where it is not possible to determine the time of supply under clause (a) or (b), the time of supply shall be the date of entry in the books of account of the recipient of supply: PROVIDED FURTHER that in case of associated enterprises , where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier. Explanation.- For the purpose of clause (a), the date on which the payment is made shal

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Section 19 – Draft-Bills-Reports – MISCELLANEOUS – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 19 – 19. Tax wrongfully collected and deposited with the Central or a State Government (1) A taxable person who has paid IGST on a supply considered by him to be an inter-state supply, but which is subsequently found to be an intra-State supply, shall, be granted refund of the amount of IGST so paid in such manner and subject to such conditions as

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Section 20 – Draft-Bills-Reports – MISCELLANEOUS – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 20 – 20. Refund of IGST paid on supply of goods to outbound tourist (1) The IGST paid on any supply of goods to outbound tourist shall be refunded, in the manner and subject to such conditions and safeguards as may be prescribed, if such goods are taken out of India. (2) The refund under sub-section (1) shall be allowed only on such supply of good

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Section 12 – Draft-Bills-Reports – TIME AND VALUE OF SUPPLY – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 12 – CHAPTER IV TIME AND VALUE OF SUPPLY 12. Time of supply of goods (1) The liability to pay CGST / SGST on the goods shall arise at the time of supply as determined in terms of the provisions of this section. (2) The time of supply of goods shall be the earlier of the following dates, namely,- (a) the date of issue of invoice by the supplier or the last date on which he is required, under section 28, to issue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply: PROVIDED that where the supplier of taxabl

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d on reverse charge basis, the time of supply shall be the earliest of the following dates, namely- (a) the date of the receipt of goods, or (b) the date on which the payment is made, or (c) the date immediately following thirty days from the date of issue of invoice by the supplier: PROVIDED that where it is not possible to determine the time of supply under clause (a), (b) or (c), the time of supply shall be the date of entry in the books of account of the recipient of supply. Explanation.- For the purpose of clause (b), the date on which the payment is made shall be the date on which the payment is entered in the books of accounts of the recipient or the date on which the payment is debited in his bank account, whichever is earlier. (4)

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Section 18 – Draft-Bills-Reports – MISCELLANEOUS – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 18 – 18. Power to make rules (1) The Central Government may, on the recommendation of the Council, by notification, make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may (a) provide for settlement of cases in accordance with Chapter XII of this Act; (b

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Section 11 – Draft-Bills-Reports – LEVY OF, AND EXE MPTION FROM, TAX – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 11 – 11. Power to grant exemption from tax (1) If the Central or a State Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendation of the Council, by notification, exempt generally either absolutely or subject to such conditions as may be specified in the notification, goods and/or services of any specified description from the whole or any part of the tax leviable thereon with effect from the date of issue of notification or any date subsequent thereto as may be specified in the said notification. Explanation.- Where a

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r sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be. (4) Every notification issued under sub-section (1) or sub-section (3) and every order issued under sub-section (2) shall (a) unless otherwise provided, come into force on the date of its issue by the Central or a State Government for publication in the Official Gazette or from any date subsequent to the date of its issue as may be specified therein;

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Section 7- Draft-Bills-Reports – ADMINISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 7- 7. Powers of SGST/CGST officers under the Act (Draft II) The officers appointed under the SGST Acts shall, to such extent and subject to such conditions, as may be prescribed in the rules made in this behalf, be the proper officers for the purposes of sections (………..) of this Act.] – Statutory Provisions, Acts, Rules, Re

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Section 17 – Draft-Bills-Reports – MISCELLANEOUS – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 17 – 17. Application of certain provisions of the CGST Act, 2016 The provisions relating to registration, valuation, time of supply of goods, time of supply of services, change in rate of tax in respect of supply of goods or services, input tax credit and utilization thereof, distribution of input tax credit by an Input Service Distributor, job wo

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Section 5- Draft-Bills-Reports – ADMINISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 5- 5 Appointment of officers under the State Goods and Services Tax Act (1) The Government may appoint such persons as it may think fit to be officers under the State Goods and Services Tax Act: PROVIDED that the persons appointed as officers under the Central Goods and Services Tax Act shall be deemed to be appointed as officers under this Act

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Section 16 – Draft-Bills-Reports – ZERO RATED SUPPLY – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 16 – 16. Zero rated supply (1) zero rated supply means any of the following taxable supply of goods and/or services, namely – (a) export of goods and/or services; or (b) supply of goods and/or services to a SEZ developer or an SEZ unit. (2) Subject to provisions of sub-section (3) of section 17 of the CGST Act, 2016, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. (3) A registered taxable person exporting goods or services shall be eligible to claim refund under one of the following two options, namely – (a) a re

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Section 6- Draft-Bills-Reports – ADMINISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 6- 6. Powers of officers under the State Goods and Services Tax Act (1) Subject to such conditions and limitations as the Commissioner may impose, an officer of the State Goods and Services Tax may exercise the powers and discharge the duties conferred or imposed on him under this Act. (2) An officer of State Goods and Services Tax may exercise

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Section 15 – Draft-Bills-Reports – APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 15 – 15. Apportionment of tax collected under the Act and settlement of funds (1) Out of the IGST paid to the Central Government in respect of inter-State supply of goods and/or services to an unregistered person or to a taxable person paying tax under section 9 of the CGST Act, 2016 the amount of tax calculated at the rate equivalent to the CGST on similar intra-state supply shall be apportioned to the Central Government. (2) Out of the IGST paid to the Central Government in respect of inter-State supply of goods and/or services where such taxable person is not

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rt of goods and / or services by an unregistered person or by a taxable person paying tax under section 9 of the CGST Act, 2016 the amount of tax calculated at the rate equivalent to the CGST on similar intra-State supply shall be apportioned to the Central Government. (5) Out of the IGST paid to the Central Government in respect of import of goods and / or services, where the such taxable person is not eligible for input tax credit, the amount of tax calculated at the rate equivalent to the CGST on similar intra-State supply shall be apportioned to the Central Government. (6) Out of the IGST paid to the Central Government in respect of import of goods and / or services made in a year by a registered taxable person, where he does not avail

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ount shall be apportioned to each of the States to which such taxable person has made supplies during the financial year in the proportion of the total supplies made to each of such States: PROVIDED FURTHER that where the taxable person making such supplies cannot be determined, the said balance amount shall be apportioned to all States as per the order made by the President under clause (2) of Article 270. (8) The provisions of sub-sections (1), (2), (3), (4), (5), (6) and (7) relating to apportionment of tax shall mutatis mutandis apply to the apportionment of interest, penalty and compounding amount realized in connection with the tax so apportioned. (9) Where an amount has been apportioned to the Central Government or a State Government

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Section 13 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 13 – 13. Claim of input tax credit, provisional acceptance, matching, reversal and reclaim of input tax credit or reduction in output tax liability (1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed in this behalf, be entitled to take credit of input tax, as self-assessed, in his return a

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Section 14 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 14 – 14. Transfer of input tax credit (1) On utilization of input tax credit availed under this Act for payment of tax dues under the CGST Act as per sub-section (5) of section 11, the amount collected as IGST shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount

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