Author: admin_gst

INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-4) (Meaning of Important Terms)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 6-5-2017

This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are business, business vertical and casual taxable person.
Business [Section 2(17)]
'Business' includes
* any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
* any activity or transaction in connection with or incidental or ancillary to sub-clause(a);
* any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
* supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
* provision by a club, association, society, or any such

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ness, will be considered as a Supply.
It is important to note that the for the coverage under the term business, the intention to earn profit out of it will not be considered. Even if there is no intention to make profit out of it, still the transaction may be covered in the definition of 'business'. For example, supply of goods by an association to its members. It may be noted that any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities shall be deemed to be business.
This definition is an inclusive definition wherein all types of transactions including incidental or ancillary to trade, commerce, manufacture, profession, vocation, adventure, wager or other similar activities are covered. It is immaterial whether such transactions are for pecuniary benefit or not. These terms have not been defined. 'Agriculture' is specifically excluded from 'business'.
Busines

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xplanation.For the purposes of this clause, factors that should be considered in determining whether goods or services are related include
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of regulatory environment (wherever applicable), including banking,
insurance, or public utilities.
Under the scheme of the CGST Act, each taxable person is required to have one registration in a state, from which it makes supplies of taxable goods or services. Even if such person has more than one place of business in a single state, still such person is required to obtain only one registration. However, an exception has been made for a separate business vertical. Thus, a taxable person having more than one business vertical in a state can consider to obtain more than one registrations in that state for each of

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the production processes.
* the type or class of customers for the products or services.
* the methods used to distribute the products or provide the services.
* if applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities.
Business vertical is relevant for the purpose of distribution of input credit by Input Service Distributor (ISD) and for the purpose of obtaining separate GST registration. If the entity opts to have separate registration for different business verticals, it will have more than one registration within the State.
Casual taxable person [Section 2(20)]
'Casual taxable person' means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
Casual taxable persons are those persons who undertake busine

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'State check posts will go under GST; excise point may stay'
GST
Dated:- 5-5-2017

New Delhi, May 5 (PTI) State level check posts which collect taxes on movement of goods will not be required under the GST regime that will take effect from July 1, although excise collection points may remain as they relate to taxation on alcohol, Revenue Secretary Hasmukh Adhia said today.
The rates will be common under the Goods and Services Tax and for the movement of goods in or outside a state, there is no need to check whether goods have moved physically out of the state or not, he said.
"So, as far as taxation is concerned, the check posts will go. There are couple of other check posts like the state excise check posts. State excis

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you the input tax credit that is given on petrol and diesel, the rate will be different," he said.
"What that rate will be, I cannot say, but it will be different for transportation sector," he added.
The next meeting of the GST Council is scheduled for May 18-19.
In this round of the meeting to be headed by Finance Minister Arun Jaitley, the Council is scheduled to finalise the rates of different commodities and services.
It is also expected to approve rates of remaining items.
The Council has already approved half of the rules that are required for rolling out of GST from the scheduled date.
Rules on registration of entities under GST, filing of returns, payment of tax and refund, invoicing and debit and credit notes

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IMPACT OF GST ON AUTOMOBILE DEALERS
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 5-5-2017

Present Indirect Taxation
This sector basically comprises of Manufacturers, Automobile Dealers & Retailers. Presently, all of them are paying various indirect taxes such as:
* Excise Duty on manufacture/production of vehicles along with cesses,
* Service tax on services both as provider and also as receiver under reverse charge,
* Value added tax (VAT)/Central sales tax (CST) on Sale of Vehicle/ Spares/ Accessories;
* Central Cesses
Taxation under GST Regime
Taxable Person
For GST, 'taxable person' means a person who is registered or liable to be registered under section 22 or 24 of the CGST Act, 2017.
Example
If as an Automobile dealer has obtained separate registration for its administrative office, showroom and workshop in the same/different State(s), then in case of separate registrations such administrative office, showroom and workshop, shall b

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han in CGST Act, SGST/UTGST Act or compensation cess if charged separately by the supplier. (Example: toll tax etc.)
* Amount paid by the recipient w.r.t. supply on behalf of supplier and not included in the price actually paid or payable (Example: Labour payment made by the recipient on behalf of supplier)
* Incidental Expenses such as employee insurance
* interest or late fee or penalty for delayed payment of any consideration for any supply (Example: Interest on delayed payments)
* Value of subsidies linked to supply excluding subsidies provided by the Central and State Governments
However, value of supply shall exclude any discount that is given:
(a) Before or At the time of the supply: Discount has been duly recorded in the invoice issued in respect of such supply, and
(b) After the supply has been effected
(i) Discount is established in terms of an agreement entered into at or before the time of such supply, and
(ii) Specifically linked to relevant invoices, and
(ii

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of interest
* Commission from banks and insurance companies
Following valuation issues concerning Automobile industries are a challenge which require redressal from your good office:
Road Tax/ Life Tax – Currently, service tax or VAT is not paid on the Road Tax element. However, in the GST regime, value for the purpose of paying GST should also include Road Tax. Section 15 of the GST law clearly states that no taxes shall be allowed as reduction from the value except CGST, SGST/UTGST and IGST. Therefore, duplication of taxes to this extent will continue, as road tax is not being subsumed in GST. Road tax rates vary from State to State, are fairly high and ranges between 2% to 15%. This would unnecessary increase cost for the consumers.
Reimbursement of Insurance, Registration etc. – In the GST Law, it is not stated whether GST is also required to be paid on the reimbursements. Automobile dealer collects various amounts from customers which are mere reimbursements and are paid bac

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rged by the manufacturer may later be taken as a credit.
Pre-supply Discounts – The deduction for discounts is provided subject to the condition that the same is shown in the invoice and is in the course of normal trade practice. The term 'normal trade practice' is very subjective and especially in the automobile industry, the discounts vary depending upon the variants, new product launch, etc., and this may lead to valuation disputes.
Post-supply Discounts- Generally, dealers receive various discounts from its manufacturers based on targets, vehicles lifted, Special Customers, Year-End Discounts etc. It is pertinent to note that post supply discounts will not be allowed as deduction from the value if the same is not linked to any invoice. Therefore, discounts policy needs to be reviewed and the same must be brought in line with the GST law to avoid tax on high values and litigation.
Dealer Incentive Schemes – At present, dealer incentive schemes are not subject to VAT, but there ar

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t, it is also relevant to note the definition of the term 'consideration', which states that any deposit shall not be treated as payment made for the supply, unless the same is applied as consideration for the supply.
There may be two views taken for advances for supply, i.e.
* Either it can be treated as payment received towards supply i.e. consideration for supply or;
* Can be treated as 'deposit'.
If second view is taken, the date of appropriation of the deposit towards a supply may be treated as the date of payment. This would also lead to ambiguity in interpretation as to what should be the date of such appropriation (like date of Vehicle Identification Number (VIN), date of registration of vehicle with the regional transport office etc.). This issue requires clarity.
Vehicle Booking Advance- Currently token money received as advance towards booking of vehicle is not liable for VAT as the same is payable at the time of sale of vehicles. However, this practice of holding adv

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emises will be liable for GST if the transfer is in the course of inter-state trade. Further, if there are separate dealerships of a dealer and separate GST registration number is obtained for each such dealership, then transfer of any goods/ services between such dealerships will also be liable for GST. This will result in blocking of the working capital as the taxes needs to be paid from own funds and collection of taxes will be at a later date when such goods/ services are eventually sold.
Tax on Second Hand Vehicles
In GST, there may be additional tax burden on transactions in second-hand motor vehicles and exchange of vehicles. The proposed GST rules, issued by the Government will consider the market value of the new vehicle while calculating the tax burden. Thus, consumers may end up paying more as the discounted amount would be taxed. Under the new GST rules, retailers and traders dealing in used vehicles will come under taxation. While under the existing rules, second – hand

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f GST covering Automobile Industry, the same are as follows-
1. Whether Supply of Spare Parts and Service Charges would be continued to taxed separately as Supply of Goods and Supply of Services and accordingly taxed at the applicable rates or will it be treated as Composite/Mixed Supply on Case to case basis??
2. Whether Provisions of Sec 140(3) shall cover already registered Automobile dealers who are also running their Service Workshop for servicing of Vehicle??
3. Admissibility of Cenvat Credit on Demo vehicle i.e., Excise Element paid on Excise Bills, though such cars have been capitalized in books of Accounts of the Dealer. Thanks & Regards,
Dated: 7-5-2017
Reply By Pranay Jain as =
Dear Sir,
Thanks for sharing this, I am an automobile dealer, but there are few points which need to further discussed
1. GST on road tax doesn't make sense, since it is not part of consideration value and it is imposed on complete invoice value including VAT or GST. So Road tax on GST a

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er, lead to dispute for being treated as mixed or composite supply.
* Section 140(3) may not cover automobile dealers as they are covered under Service Tax / VAT
* Input credit can be taken for demo vehicle if it is being capitalized
* Road tax is not being subsumed in GST
* Free service coupons may taxed at redemption (Refer place of supply provisions in IGST)
* Pre-announced discounts or incentives may not be taxed.
You may write to asandco@gmail.com or sanjivservicetax@gmail.com
Dated: 12-5-2017
Reply By abhishek ghai as =
Respected Sir,
Please clarify whether the following stands correct as in my opinion benefits of
Sec 140(3) would be extended to already registered persons i.e., trader/Service Provider-
1. The opening line of the section says that – "A registered person, who was not liable to be registered
under the existing law", Section does not say- under "any" of the existing law. Can we not safely assume
that currently traders are not

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Ascertaining of total turnover for threshold limit fixed in GST.
Query (Issue) Started By: – samiuddin ansari Dated:- 4-5-2017 Last Reply Date:- 5-5-2017 Goods and Services Tax – GST
Got 2 Replies
GST
Sir,
Under GST, the threshold limit for exemption has been fixed for ₹ 20 lakhs for the supplier of taxable services and ₹ 1.50 Crore for the supplier of manufactured taxable goods for getting registered with GST. However, I need your suggestion as to whether manufacturer engaged in manufacturing taxable goods having a turnover less than threshold limit but also supplied services have more than 20 lakhs in a financial year, has to apply for registration under GST and also whether they have to show the details of manuf

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ther it is a correct conclusion or otherwise.
Thanks with regards
S.N.Ansari.
Reply By Himansu Sha:
The Reply:
IT appears the last part of your ascertainment is correct. Please refer to the relevant provisions of CGST Act
"22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
X

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Eight States’ Assemblies pass the State GST Act within a short span of less than one month
GST
Dated:- 4-5-2017

Eight States have passed the State Goods and Services Tax (SGST) Act in their respective State Assembly in less than a month's time. The Legislative Assembly of Telangana State passed the State GST Act on 9th April, 2017, that of Bihar State passed it on 24th April, 2017, Rajasthan Assembly on 26th April, 2017, that of Jharkhand on 27th April, 2017, Chhattisgarh Assembly on 28th April, 2017, that of Uttarakhand on 2nd May, 2017, Madhya Pradesh Assembly on 3rd May, 2017 while the Assembly of State of Haryana passed the State GST Bill today i.e. 4th May, 2017.
Earlier the GST Council had approved the model State GST

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GST to be game changer for media, broadcasting
GST
Dated:- 4-5-2017

New Delhi, May 4 (PTI) The GST Bill, among other new transformations, will prove to be a game changer for the media and entertainment industry, Union Minister Venkaiah Naidu said here today.
"Campaigns like Make in India, Skill India and Digital India were clearly positive signals for new transformation including GST which would prove to be a game changer for Indian media and entertainment sector, especially the broadcasting sector," Information and Broadcasting Minister Naidu said.
He was addressing a gathering at the inauguration of a two-day seminar organised by Telecom Regulatory Authority of India (TRAI) on its completion of two decades.
&quo

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Forms under GST
Query (Issue) Started By: – Aitha RajyaLakshmi Dated:- 4-5-2017 Last Reply Date:- 5-5-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Sir,
Whether all the forms what all mentioned in Draft GST Rules were available on public portal?
Reply By Govind Gupta:
The Reply:
http://www.cbec.gov.in/htdocs-cbec/gst/draft-rules-format
http://finmin.nic.in/GST/GST_draft_rules_format.asp
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
The forms are made available in the draft

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Modification of registration
Query (Issue) Started By: – Aitha RajyaLakshmi Dated:- 4-5-2017 Last Reply Date:- 5-5-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Sir,
Is there any option to modify the details given in GST migration. Our additional place of business is rented but we have given it as own premises.
Reply By KASTURI SETHI:
The Reply:
Still it is proviosnal. It can be modified. Nothing to worry. You can amend it even after the date of implementation of GST.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Section 28 of CGST Act, 2017 provides for amendment of Registration. Rule 11(2) of Returns as approved by GST Council provides that where the change relates to legal name of business, address of the principal

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GST ROLL OUT – 1st SEPTEMBER 2017?
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 4-5-2017

The implementation of GST in India has been taken effort since 2010. Now it has come true after making amendment in the Constitution and passing of four acts viz., Central Goods and Services Tax Act, 2017, Union Territory Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017 and the Goods and Services Tax (Compensation to States) Act, 2017. It is expected that the implementation of GST would be with effect from 1st July, 2017.
The following rules have been approved by GST Council (as on 02.04.2017)-
* Composition Rules;
* Valuation Rules;
* Transition Rules;
* ITC Rules;
* Revise

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businesses want the new levy to be introduced with effect from 01.09.2017.
Migration of existing assessees to GST is also another challengeable issue. 30.03.2017 was fixed as the deadline for migration to GST by the existing assessees. It is reported that only 70% of them migrating as of April 30 deadline. Migration of service tax and Central excise assessees was also low at 43.73% and 24% respectively. This lacking is to be discussed in the GST Council to be conducted at Srinagar on 18.05.2017 and 19.05.2017.
It is reported in www.gst.gov.in that more than 60 lakhs tax payers enrolled on GST portal between 8th November, 2016 to 30th April, 2017. The enrolment process has been closed with effect from 01.05.2017. Data of all those who have

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to tune their systems.
Anti-profiteering clause in CGST Act is another challenge to the assessees. Because of it every one wants to be very careful. Detailed guidelines are to be issued by the Government in this regard.
The Finance Minister is keen in introducing GST by 01.07.2017. Every wing in service sectors, industries and traders wants some time to come up with the GST. Whatever date GST may be implemented there shall be a smooth transition to the new environment.
Source:
1. www.gst.gov.in
2. Business Line
3. www.cbec.gov.in
Reply By KASTURI SETHI as =
Dear Sir,
Very informative and educative article. Writing an article is an innate art gifted by God.You are really a great hard worker coupled with appreciable stamina. God do

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GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017)
GST
Dated:- 3-5-2017

GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017)
=============
Document 1
GOODS &
SERVICES TAX
(GST)
(Status as on 01st May, 2017)
1
PRESENTATION PLAN
WHY GST: BENEFITS
❖ EXISTING INDIRECT TAX STRUCTURE
❖ FEATURES OF CONSTITUTION AMENDMENT ACT
*GST COUNCIL
❖ MAIN FEATURES OF GST LAW
Ü€
GSTN
✰ ROLE OF CBEC
WAY FORWARD
2
WHY GST?
BENEFITS
3
WHY GST: BENEFITS
To Trade
☐ Reduction in multiplicity of
taxes
To Consumers ܀
☐ Mitigation of cascading/ double
taxation
☐ More efficient neutralization of
taxes especially for exports
☐ Development of common
national market
☐ Simpler tax regime
Fewer rates and exemptions
Distinction between Goods &
Services no longer required
â–¡ Simpler Tax system
Reduction in prices of
goods & services due
to elimination of
cascading
☐ Uniform prices
throughout t

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Key Features:
â–¡ Concurrent jurisdiction for levy & collection of GST
by the Centre & the States – Article 246A
☐ Centre to levy & collect IGST on supplies in the
course of inter-State trade or commerce including
imports Article 269A
–
9
….FEATURES OF CAA……..
❖ Key Features contd.
☐ Compensation for loss of revenue to States for five years on
recommendation of GSTC – Clause 19
☐ GST on petroleum crude, high speed diesel, motor spirit
(commonly known as petrol), natural gas & aviation turbine
fuel to be levied from a later date on recommendations of
GSTC
10
..FEATURES OF CAA
Key Features contd.
☐ GSTC – Article 279A
To be constituted by the President within 60 days from the
coming into force of the Constitution Amendment
Consists of Union FM & Union MOS (Rev)
Consists of Ministers in charge of Finance / Taxation of each
State
Chairperson – Union FM
Vice Chairperson – to be chosen amongst the Ministers of State
Gov

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s
Government may convert existing area based exemption
schemes into reimbursement based scheme
14
✰ Decisions:
…GST COUNCIL….
☐ To ensure single interface all administrative control
over
–
â–  90% of taxpayers having turnover below Rs. 1.5 cr. would
vest with State tax administration
10% of taxpayers having turnover below of Rs. 1.5 cr.
would vest with Central tax administration
taxpayers having turnover above Rs. 1.5 cr. would be
divided equally between Central and State tax
administration
â–¡ Same arrangement would be applicable for IGST Act
with few exceptions
15
…GST COUNCIL
✰ Decisions:
â–¡ CGST, UTGST, IGST, SGST & GST Compensation Law
recommended
☐ Formula for calculating compensation finalized
☐ Tax rates
Four tax rates namely 5%, 12%, 18% and 28%
Some goods and services would be exempt
Separate tax rate for precious metals
Cess over the peak rate of 28% on specified luxury and demerit
goods
Rules on input

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al Government, at the rate to be prescribed
Maximum rate ring fenced in law
18
….MAIN FEATURES OF LAW….
* Determination of nature of supply.
â–¡ Elaborate Rules provided for determining the place of
supply
–
Intra-State supply of goods or services where the location
of the supplier and the place of supply are in the same State
–
Inter-State supply of goods or services where the location
of the supplier and the place of supply are in different State
Liability to pay:
â–¡ Liability to pay tax arises only when the taxable person
crosses the exemption threshold
19
….MAIN FEATURES OF LAW….
* Composition Scheme:
☐ Provision for levy of tax on fixed rate on aggregate turnover
upto a prescribed limit in a financial year (Composition
scheme) without participation in ITC chain
Time & Value of supply:
☐ Elaborate principles devised for determining the time of
supply of goods or services with following being crucial
determinants with certain excep

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ts
services and capital goods are partly used for business
and partly for non-business purposes
☐ Proportionate credits allowed in case inputs, inputs
services and capital goods are used for taxable including
zero rated and exempt (including non-taxable) supplies
22
…MAIN FEATURES OF LAW….
Input Tax Credit (ITC):
☐ ITC cannot be availed after filing of return for the month
of September of next Financial Year or filing of Annual
Return
☐ ITC available only on provisional basis for a period of
two months until payment of tax and filing of valid
return by the supplier
☐ Matching of supplier's and recipient's invoice details
ITC to be confirmed only after matching of such
information
ITC to be reversed in case of mis-match
â–¡ Input Service Distributor mechanism for distribution of
ITC of input services
23
…MAIN FEATURES OF LAW….
❖ Registration.
☐ PAN based Registration
required to be obtained for each State from where tax

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s, Casual
taxpayers, non-resident taxpayers, TDS Deductors,
Input service Distributors (ISDs) to file separate
electronic returns with different cut-off dates
Annual return to be filed by 31st December of the
following Financial Year along with a reconciliation
statement
Short-filed returns not to be treated as a valid return for
matching & allowing ITC and fund transfer between
Centre and States
GST practitioners scheme to assist taxpayers mainly in
filing of returns
26
Ü€
…MAIN FEATURES OF LAW….
❖ Payment:
System of electronic cash ledger and electronic ITC
ledger
Tax can be deposited by internet banking, NEFT / RTGS,
debit/credit card and Over The Counter
Date of credit to the Govt. account in the authorized
bank is the date of payment for credit in electronic cash
ledger
☐ Payment of Tax is made by way of the debit in the
electronic cash or credit ledger
27
…MAIN FEATURES OF LAW….
❖ Payment:
Cross-utilization of ITC between CG

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n 7 days
â–¡ Tax refund will be directly credited to the bank account
of applicant
30
….MAIN FEATURES OF LAW….
❖ Assessment and Audit.
☐ Self-assessment of tax
☐ Provisions for assessment of non-filers, unregistered
persons & summary assessments in certain cases
☐ Provision for provisional assessment on request of
taxable person – to be finalized in six months
☐ Audit to be conducted at the place of business of the
taxable person or at the office of the tax authorities, after
prior intimation to taxable person
☐ Audit to be completed within 3 months, extendable by a
further period of 6 months
31
…MAIN FEATURES OF LAW….
❖ Demand:
Adjudication order to be issued within 3/5 years of
filing of annual return in normal cases & fraud /
suppression cases respectively
SCNs to be issued at least 3 months and 6 months
prior to last date of passing adjudication order in
normal cases and in fraud cases respectively
Taxable pe

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lders
Central Government – 24.5%
EC and all States together – 24.5%
☐ Financial Institutions – 51%
36
….GSTN
To function as a Common Pass-through portal for
taxpayers-
☐ submit registration application
☐ file returns
☐ make tax payments
To develop back end modules for 27 States (MODEL-II)
❖ Infosys appointed as Managed Service Provider (MSP)
* Appointed 34 GST Suvidha Providers (GSPs)
to develop simple applications to be used by taxpayers for
interacting with GSTN
37
ROLE OF CBEC
38
ROLE OF CBEC
❖ Prominent role as custodian of Centre's fiscal destiny in relation
to indirect taxes
❖Role in Policy making: Drafting of GST Law, Rules & Procedures
– CGST, UTGST & IGST Law
Assessment, Audit, Anti-evasion & enforcement under CGST &
IGST Law
* Levy & collection of Central Excise duty on products outside GST
– Five specified Petroleum Products & Tobacco
* Levy & collection of Customs duties
* Developing linkages of CBEC – GST

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Deemed Credit of SEZ goods
Query (Issue) Started By: – Pranay Jain Dated:- 3-5-2017 Last Reply Date:- 4-5-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Whether deemed credit of 40% in CSGT will be available to first stage dealer on SEZ goods in his stock on appointed date 01st Jul17.
Reply By Govind Gupta:
The Reply:
Hi Pranay
let us go into more details, ideally if goods have been subjected to any tax incidence, then ideally there should not be any credit available, the la

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GST – CONCEPT & STATUS – As on 01st May, 2017
GST
Dated:- 3-5-2017

Introduction
The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer.
Genesis
2. The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Bu

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e domains. The Centre has the powers to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-State sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely by the originating States. As for services, it is the Centre alone that is empowered to levy service tax. Since the States are not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levies and collects this tax as additional duties of customs, which is in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balances excise duties, sales tax, State VAT and other taxes levied on the like domestic product. Introduction of GST would require amendments in the Constitution so as to concurrently empower the C

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integrated tax – IGST) on inter-State trade or commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council.
4.1 A Goods and Services Tax Council (GSTC) shall be constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism would ensure some degree of harmonization on different aspects of GST between the Centre and the States as well as across States. One half of the total number of members of GSTC would form quorum in meetings of GSTC. Decision in GSTC would be taken by a majority of not less than three-fourth of weighted votes cas

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r. The following major decisions have been taken by the GSTC:
(i) The threshold exemption limit would be ₹ 20 lakh. For special category States enumerated in article 279A of the Constitution, , threshold exemption limit has been fixed at ₹ 10 lakh.
(ii) Composition threshold shall be ₹ 50 lakh. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers.
(iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST.
(iv) There would be four tax rates namely 5%, 12%, 18% and 28%. Besides, some goods and services would be under the list of exempt items. Rate for precious metals is yet to be fixed. A cess over the peak rate of 28% on certain specified luxury and demerit goods would be imposed for a period of five years

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a and mechanism for GST Compensation Cess has been finalised.
(x) Four rules on input tax credit, composition levy, transitional provisions and valuation have been recommended. Further five Rules on registration, invoice, payments, returns and refund, finalized in September, 2016 and as amended in light of the GST bills introduced in the Parliament, have also been recommended.
Salient Features of GST
6. The salient features of GST are asunder:
(i) GST would be applicable on “supply” of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services.
(ii) GST would be based on the principle of destination based consumption taxation as against the present principle of origin based taxation.
(iii) It would be a dual GST with the Centre and the States simultaneously levying it on a common base. The GST to be levied by the Centre would be called Central GST (CGST) and that to be levied by the States [including Union

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nd Textile Products);
e) Additional Duties of Customs (commonly known as CVD);
f) Special Additional Duty of Customs (SAD);
g) Service Tax;
h) Cesses and surcharges insofar as they relate to supply of goods or services.
(ix) State taxes that would be subsumed within the GST are:
a) State VAT;
b) Central Sales Tax;
c) Purchase Tax;
d) Luxury Tax;
e) Entry Tax (All forms);
f) Entertainment Tax (except those levied by the local bodies);
g) Taxes on advertisements;
h) Taxes on lotteries, betting and gambling;
i) State cesses and surcharges insofar as they relate to supply of goods or services.
(x) GST would apply to all goods and services except Alcohol for human consumption.
(xi) GST on five specified petroleum products (Crude, Petrol, Diesel, ATF & Natural gas) would be applicable from a date to be recommended by the GSTC.
(xii) Tobacco and tobacco products would be subject to GST. In addition, the Centre would continue to levy Central Excise duty.
(xiii) A common thres

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d circumstances of inter-State supplies for payment of IGST. The credit would be permitted to be utilized in the following manner:
a) ITC of CGST allowed for payment of CGST & IGST in that order;
b) ITC of SGST allowed for payment of SGST & IGST in that order;
c) ITC of UTGST allowed for payment of UTGST & IGST in that order;
d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order.
ITC of CGST cannot be used for payment of SGST/UTGST and vice versa.
(xvii) Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by

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bligation on electronic commerce operators to collect 'tax at source', at such rate not exceeding two per cent. (2%) of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals.
(xxiv) System of self-assessment of the taxes payable by the registered person.
(xxv) Audit of registered persons to be conducted in order to verify compliance with the provisions of Act.
(xxvi) Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases.
(xxvii) Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful misstatement.
(xxviii) Arrea

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h to the consumers.
(xxxiv) Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime.
Benefits of GST
7. (A) Make in India
(i) Will help to create a unified common national market for India, giving a boost to Foreign investment and “Make in India” campaign;
(ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and services at every stage of supply;
(iii) Harmonization of laws, procedures and rates of tax;
(iv) It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth;
(v) Ultimately it will help in poverty eradication by generating more employment and more financial resources;
(vi) More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports;
(vii) Improve the overall investment cli

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rns, refunds, tax payments, etc;
(v) All interaction to be through the common GSTN portal – so less public interface between the taxpayer and the tax administration;
(vi) Will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions;
(vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system;
(viii) Timelines to be provided for important activities like obtaining registration, refunds, etc;
(ix) Electronic matching of input tax credits all – across India thus making the process more transparent and accountable.
(C) Benefit to Consumers:
(i) Final price of goods is expected to be lower due to seamless flow of input tax credit between the manufacturer, retailer and service supplier;
(ii) It is expected that a relatively large

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Services Tax Network (GSTN) for successful migration. About 70 percent of existing registrants have already migrated to the GST systems. GSTN has already appointed M/s Infosys as Managed Service Provider (MSP) at a total project cost of around ₹ 1380 crores for a period of five years.
8.1 GSTN has selected 34 IT, ITeS and financial technology companies, to be called GST Suvidha Providers (GSPs). GSPs would develop applications to be used by taxpayers for interacting with the GSTN. Other Legislative Requirements
9. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act have been passed by the Parliament and since been notified on 12th April, 2017. The State of Telangana, Bihar, Rajasthan, Jharkhand and Chhattisgarh have also passed SGST Act. Other States are expected to pass them in the month of May, 2017.
9.1 The levy of the tax can commence only after the GST Law has been enacted by all the legislatures. Also, unlike the State VAT, the date of com

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y the Cabinet on 28th September, 2016. The name of this project is 'SAKSHAM' involving a total project value of ₹ 2,256 crores.
10.1 It was also felt that the organizational structure and deployment of human resources needed a review for smooth and effective implementation of GST. A Working Group has after extensive deliberations and studies, submitted its Report which has been approved by the Government.
10.2 Augmentation of human resources would be necessary to handle large taxpayers' base in GST scattered across the length and breadth of the country.
Capacity building, particularly in the field of Accountancy and Information Technology for the departmental officers has to be taken up in a big way. A massive four-tier training programme is being conducted under the leadership of NACEN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBEC and Commercial Tax officers of State Governments. Officers of the office of

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UP Cabinet approves implementation of GST
GST
Dated:- 2-5-2017

Lucknow, May 2 (PTI) The Uttar Pradesh government today approved implementation of the Goods and Services Tax (GST) in the state and the same will be passed in the Assembly in the session commencing from May 15.
The decision in this regard was taken at the state cabinet meeting chaired by Chief Minister Yogi Adityanath here.
"The revenue of the state is likely to increase after implementation of the GST in the fi

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Composition Scheme
Query (Issue) Started By: – Siddharaj Deora Dated:- 2-5-2017 Last Reply Date:- 27-7-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Are works contract covered under composition scheme? If not, whether any abatement is provided as in Service Tax? And what rate will apply for supply of goods and supply of services?
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
Section 10(2) of CGST Act provides that the registered person shall be eligible to opt under composition scheme, if-
(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of para 6 of Schedule II;
(b) he is not engaged in making any supply of goods which are not leviable to tax under this Act;
(c) he is not e

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Area Based Exemption
Query (Issue) Started By: – CA AJAY KUMAR AGRAWAL Dated:- 2-5-2017 Last Reply Date:- 17-6-2017 Goods and Services Tax – GST
Got 9 Replies
GST
Dear all, By the time learned members must have an idea of shape of GST in area based exemption states like HP & UK. Please share your valuable views or share link of relevant articles.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
It is learnt that the same may likely to be continued in GST regime.
Reply By CA AJAY KUMAR AGRAWAL:
The Reply:
Thank you sir very much. My query was specifically regarding whether they have to avail ITC on the transition date & then pay GST or whether they will be eligible to avail ITC after completion of Exemption period & have to pay G

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TYPES OF ‘SUPPLY’ UNDER ‘GST’ REGIME
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 2-5-2017

Section 66B of the Finance Act, 1994 provides that there shall be levied a tax at the rate of fourteen per cent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. The central excise duty is leviable on the manufacturing of goods. GST, being subsumed service tax and central excise duty, levies tax on the concept of supply. The key word that is to be remembered by the stakeholders is 'supply'. In this article the meaning of the term 'supply' and the types of various supplies are discussed for the information of the readers.
Supply
Section 7 of the Act defines the term 'supply' including-
* all forms of supply of goods or services or both such as sale, transfer, barter, exchange

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nuous supply of goods' as a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under the contract whether or not by means of a wire, cable, pipeline or other conduit, and for which the suppler invoices the recipient on a regular or periodic basis and includes supply of such goods as Government may, subject to such conditions as it may, by notification, specify.
Section 2(33) defines the expression 'continuous supply of services' as a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract for a period exceeding three months with periodic payment obligation and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify.
Inward supply
Section 2(67) defines the expression 'inward supply' in relation to a person, as receipt of goods or services or both whether by purchase, acquisition or any other means with or without co

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al supply
Section 2(90) defines the expression 'principal supply' as the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.
Inter-State supply
Section 7 of Integrated Goods and Services Tax Act, defines the expression 'inter-State Supply' as supply of goods, where the location of the supplier and place of supply are in-
* two different States;
* two different Union territories; or
* a State and a Union territory
shall be treated as a supply of goods in the course of inter-State trade or commerce.
Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.
Where the location of the supplier and the place of supply are in-
* two different States;
* two different Union territories; or
* a State and a Union territory
sha

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oods to or by a Special Economic Zone developer or a Special Economic Zone Unit;
* goods imported into the territory of India till they cross the customs frontiers of India; or
* supplies made to a tourist referred to in Section 15.
The supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply. The intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit.
Explanation 1. -for the purposes of this Act, where a person has-
* an establishment in India and any other establishment outside India;
* an establishment in a State or Union territory and any other establishment outside that State; or
* an establishment in a State or Union territory and any other establishment being a business vertical registered with that State or Union territory,
then such establishments shall be treat

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For kind attention of Honourable Prime Minister and Finance Minister. Meaning of services – there seems serious and fatal flaw in definition clause in GST laws
By: – DEVKUMAR KOTHARI
Goods and Services Tax – GST
Dated:- 2-5-2017

Relevant laws:
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017. In short CGST
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017. In short IGST
THE UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017. In short UTGST
THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017. In short GST Compensation.
Common definition or meaning of “services”:
Definitions or meaning provided in the CGST are adopted in IGST and UTGST, unless specific definition is provided in them. We find that meaning of “services” is provided in CGST and not in IGST, UTGST and GST Compensation. Therefore meaning of services as per CGST is applicable in IGST, UTGST, and GST Compensation.
We also find that few specific services have been defined in CGST, IGST and UTGST.
Rele

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ords and expressions used and not defined in this Act but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, the State Goods and Services Tax Act, and the Goods and Services Tax (Compensation to States) Act, shall have the same meaning as assigned to them in those Acts.
Analysis of meaning of Services as per S.2 (102) of CGST:
“services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;
Analysis:
Although the definition clause starts with standard sentence 'unless the context otherwise requires' , however in relation to services we find that:
* A meaning has been given by use of expression “services” means
* Service means anything- this connotes that it should be thing. A service is generally
not a thi

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ct in the meaning can be cured by proper amendment only and not by way of general or special order for removal of difficulties as provided in S.172, which is reproduced below:
Removal of difficulties.
172. (1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:
Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.
Hope and expectation:
Author hopes that he is correct and is not unaware or unconscious of any hidden aspect of meaning of services a

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GST bill tabled in U'khand Assembly
GST
Dated:- 1-5-2017

Dehradun, May 1 (PTI) The Goods and Services Tax (GST) bill was tabled in Uttarakhand Assembly today during a special two-day session of the House convened for the purpose of passing the proposed legislation.
Introducing the bill in the Assembly, state Finance Minister Prakash Pant said its passage by the House was necessary in view of a uniform tax regime coming into force across the country from July 1.
As per the recomme

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FAQ on GST Registration
By: – Ashwarya Agarwal
Goods and Services Tax – GST
Dated:- 29-4-2017

Q1. What will be the effective date of registration in GST?
Ans. Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration.
Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
In case of suo-moto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration.
Q2. Whether a person can apply for registration even if turnover is less than threshold exemption limit?
Ans. Yes, it will be a case of Voluntary Registr

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*
Uttarakhand
Q5. What is Aggregate Turnover?
Ans. As per section 2(6) of the CGST Bill, aggregate turnover includes the aggregate value of:
*
all taxable and non-taxable supplies,
*
exempt supplies, and
*
exports of goods and/or service
*
all inter-state supplies
of a person having the same PAN.
Excludesvalue of supplies on which tax is levied on reverse charge basis, and value of inward supplies.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act.
The value of goods after completion of job work is not includible in the turnover of the job-worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the Principal.
Q6. Is it necessary for the UN bodies to get registration under GST?
Ans. Yes. U/s Sec 25(9) of the CGST Bill, All UN bodies Consulate or Embassy of foreign countries and any other class of persons so notified would be require

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tory where he has no fixed place of business.
Q9. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non-Resident Taxable person?
Ans. A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. As per Sec 27(1),the certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period specified in the application for registration or for a period of ninety days from the effective date of registration,whichever is earlier. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days.
Q10. What if the person makes supply from territorial waters of India?
Ans. Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union

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nce deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. If registration is to be extended beyond the initial period of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought.
Q13. Whether the Registration granted to any person is permanent?
Ans. Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
Q 14. Whether amendments to the Registration Certificate is permissible?
Ans. Yes. In terms of Sec 28 of CGST Bill, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars in the manner and within a period of 15 common working days from the date of receipt of application for amendment.
Provided th

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30 days from the date of receipt of reply to SCN (in cases where the cancellation is proposed to be carried out suo moto by the proper officer) or from the date of receipt of application for cancellation (in case where the taxable person/legal heir applies for such cancellation)
Q16. Whether cancellation of Registration under means cancellation under CGST Act also?
Ans. Yes. The cancellation of registration under one Act (say SGST Act or UTGST Act) shall be deemed to be a cancellation of registration under the other Act i.e. CGST Act.(Section 29 (4))
Q17 Whether a Registration once cancelled, be revoked?
Ans. Yes, as per section 30 of the CGST Bill a taxable person whose registration has been cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner.
Q18. Will ISD be required to be separately registered other than the existing taxpayer registration?
Ans. Yes, the ISD registration is for

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x
j.
Every E Commerce Operator;
k.
Every person supplying Online Information and database access or retrieval service from a place outside India to a person in India, other than a registered taxable person; and
l.
Such other person or class of persons as may be notified by the Central/ State Government on recommendation of the Council.
Q. 21 Who are the persons Not Liable to get registered?
Ans. Following persons are not liable to get registered as per section 23:
* Any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax under this Act;
* An agriculturist, for the purpose of agriculture.
Q 22. What are the special cases in which a person is liable to register under GST?
Ans As per section 22 of CGST Bill, special cases in Registration are as follows:
* Every person who,on the day immediately preceding the appointed day, is registered or holds a license under present law, shall be liable t

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cation by the departmental officers within three months, will be converted into final registration certificate. For converting the provisional registration to final registration the registrants will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of the provisional GSTIN number. The service tax assesses having centralized registration will have to apply afresh in the respective states wherever they have their businesses.
Q 24. What are forms for registration under GST?
Ans. The various Forms as prescribed in relation to Registration are as follows:
Sl.
Form
Description
1.
REG-01
Application for Registration u/s 22The GST Bill 2017
2.
REG-02
Acknowledgement
3.
REG-03
Notice for Seeking Additional Information relating to Registration / Amendments / Cancellation
4.
REG-04
Application for filing clarification Registration / Amendment / Cancellation / Revocation

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14.
REG-13
Application for Amendment in Particulars subsequent to Registration
15.
REG-14
Order of Amendment of existing Registration
16.
REG-14
(may be 15)
Application for cancellation of registration
17.
REG-16
Show Cause Notice for Cancellation of Registration
18.
REG-17
Reply to the show cause notice
19.
REG-18
Order for Cancellation of Registration
20.
REG-19
Order for dropping of proceeding of cancellation of registration
21.
REG-20
Application for Revocation of Cancelled Registration under The GST Bill 2017
22.
REG-21
Order for Approval of Application for Revocation of Cancelled Registration
23.
REG-22
Show cause notice for why application submitted for revocation should not be rejected
24.
REG-23
Reply to show cause notice for why application submitted for revocation should not be rejected
25.
REG-24
Application for Enrolment of Existing Taxpayer
26.
REG-25
Provisional Registration Certificate to existing taxpayer
27.
REG-26
Applicati

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GST COMPLIANCE RATINGS TO IMPROVE TAX MANAGEMENT
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 29-4-2017

GST law provides for Goods and Services Tax Compliance Rating which is a new concept in India. Presently, there is no system of compliance rating under any tax laws in India. GST compliance rating is a concept which will be experimented as a legal provision for the first time in our country. Accordingly, every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act. Every taxable person irrespective of its nature or size or turnover shall be assigned a GST compliance rating.
As a governance issue, it is a fact that taxes and their compliances are increasingly being discussed at board level.
Statutory Provisions
Section 149 of the Central Goods and Services Tax Act, 2017 contains provision in respect of GST compliance rating as under:
"(1) Every registered person may

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nce rating.
Accordingly, it can be said that :
* GST compliance rating is a new concept in GST. All the taxable persons will be assigned rating scores on the basis of his record of compliance of provisions of the GST law.
* The various compliance parameters on which the performance will be evaluated would be prescribed.
* The compliance rating scores would be updated on periodical basis and would be intimated to the taxable person and also the information of which would be put in public domain.
Salient features of Compliance Rating
* Every taxable person shall be assigned a GST compliance rating score based on his record of compliance with the provisions of the GST Act irrespective of its nature or size or turnover.
* Compliance rating scores could be based on
* promptness of paying taxes,
* timely e-filing of returns,
* matching of transactions,
* transparent reconciliations,
* adherence to various time limits,
* cooperation in dealing with tax department etc.

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evant to determine the eligibility of input tax credit in respect of inward supplies, selection for scrutiny and other administrative / monitoring purposes. The rating would be based on tax payer's record of compliance with the provisions of CGST, IGST and SGST. The details of parameters and methodology for rating would be as prescribed.
The compliance rating score will be updated periodically and will be intimated as follows:
* to the taxable person
* will be placed in the public domain
In terms of sub-section (3) of section 149 of the CGST Act, 2017, the GST compliance rating score shall be updated at periodic intervals and intimated to the taxable person and also placed in the public domain in the manner prescribed. The parameters and criteria as well as methodology shall be prescribed by way of regulations / guidelines.
Since GST shall operate on electronic platform, GSTN may be entrusted with the responsibility of determining rating scores based on parameters, its perio

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ld also add to efficiency of transactions, timely input tax credit and lessee hurdles in reconciliations. It would also add to organization's reputation. Large organizations and rated or listed companies including PSU's may prefer and choose to deal with good rated suppliers / vendors / enterprises.
The GST compliance sores will primarily be based on compliances with law and rules. These could cover, inter alia, the following:
* Filing of appeals an monthly basis
* Matching of transactions, i.e., no mismatch of invoices
* Filing of regular and annual returns timely and correctly
* Timely payment of proper taxes
* Correct utilization of input tax credit and its disclosure
* Correct deduction of TDS / TCS, whereable applicable
* Findings in scrutiny of returns / audit findings
* Refund claims etc.
These ratings and expected to be measured at periodic of tax payers and their dissemination on public platform.
Impact of GST Ratings
GST ratings would allow business ente

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Deemed Export – Invoicing under GST
Query (Issue) Started By: – Ramaswamy S Dated:- 28-4-2017 Last Reply Date:- 4-5-2017 Goods and Services Tax – GST
Got 1 Reply
GST
At present an EOU is allowed to invoice to another EOU in free foreign currency. No ED is charged. However, VAT is leviable if Intra State and CST (reimbursable) if Inter State.
Under the GST regime, the invoice is to be uploaded onto the GSTN. IGST is leviable on Inter State supply of goods from one EOU to another and CGST+SGST if the supply is Intra State (from one EOU to another EOU).
Query: Whether an EOU is allowed to invoice to another EOU (Intra State supplies) charging CGST+SGST in free foreign currency.
Neither SEZ authorities nor the CE/ Customs have

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Jaitley promises no surprises in GST rate fixation
GST
Dated:- 28-4-2017

New Delhi, Apr 28 (PTI) Finance Minister Arun Jaitley today promised not to spring any surprises in fixing tax rates under the new GST regime, saying they will not be "significantly different" from current levels.
He, however, said companies should pass on to consumers the benefit of reduction in taxes under GST which will eliminate the current compounding effect of different central and state levies.
The GST Council, headed by Jaitley and comprising representatives of all the states, is scheduled to meet in Srinagar on May 18-19 to finalise tax rates on different goods and services after unifying at least 10 indirect taxes into the Goods and

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GST Council has so far had 13 meetings and has never had to resort to voting to decide on any issue.
"And therefore all states representing different political complexions, have all agreed (on GST structure)," he said.
The Finance Minister said the Council is of the opinion that any benefit accruing from lower tax rates under GST should be passed on to consumers.
"Profit is not a bad word…
but unfair enrichment is.
And therefore the benefit of reduction in taxation is a benefit that consumers are entitled to. And that's not a principle that can be seriously contested," he said.
The GST laws approved by Parliament have incorporated an anti-profiteering provision to ensure that the reduction of tax incidence is

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INTERPRETATION OF CENTRAL GOODS AND SERVICES TAX (CGST) ACT (PART-3) (Meaning of Important Terms)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 28-4-2017

This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are aggregate turnover, agriculturist, assessment, associated enterprise, audit and authorized representative.
Aggregate Turnover [Section 2(6)]
The aggregate turnover is used for the purpose of calculation of threshold limit of INR 20 lakhs / 10 lakhs for registration and also calculation of eligibility of composition levy under section 10 of the Act.
'Aggregate turnover' shall be total of the following amounts or sums in relation to a person carrying on business, i.e., aggregate of the following –
* Value of all taxable supplies of goods and services
* Value of exempt supplies of goods and services
* Value of all goods and services exported
* Value of inter-state supplies
H

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he definition of agriculture and agriculturist are important because of the fact that an agriculturist for the purpose of agriculture is not liable for registration under the Act.
Following stipulations are relevant for understanding the meaning of agriculturist:
* Only an individual or Hindu undivided family (HUF) can be considered as an agriculturist.
* Cultivation of land personally is the pre-condition for being an agriculturist.
* Agriculturist shall not be considered as a taxable person.
* Ownership of the land is not a factor to be considered. It is not important whether the land is owned or leased one.
* It is also not a condition that the agriculturist should be involved in agriculture for full time.
* Cultivation of land through own labour, by labour of own family or servants employed on wages in cash or kind will be considered as own cultivation.
* A person will be considered as an 'agriculturist' only when a person cultivates land personally. To culti

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sment of non-filers of return (Section 62)
* Assessment of unregistered persons (Section 63)
* Summary assessment in special cases (Section 64)
Such assessments are subject to adjudication procedure which involves observance of principles of natural justice. The person who is assessed is called assessee. (i.e., taxable person).
Associated Enterprise [Section 2(12)]
Associated enterprise, in relation to another enterprise, means an enterprise-
* which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or
* in respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise.
As per section 92A of the Income Tax Act, 1961,sub-section

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or members of the governing board, or one or more of the executive directors or members of the governing board, of each of the two enterprises are appointed by the same person or persons; or
* the manufacture or processing of goods or articles or business carried out by one enterprise is wholly dependent on the use of know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, or any data, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process, of which the other enterprise is the owner or in respect of which the other enterprise has exclusive rights; or
* ninety per cent or more of the raw materials and consumables required for the manufacture or processing of goods or articles carried out by one enterprise, are supplied by the other enterprise, or by persons specified by the other enterprise, and the prices and other conditions relating to the supply are

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y relationship of mutual interest, as may be prescribed.
Audit [Section 2(13)]
In CGST law, there are provisions for audit by tax authorities.
Audit implies:
* examination of records, returns and other documents –
* maintained / furnished by a taxable person
* under GST law / any other law or rules
* Verification of correctness of –
* turnover declared
* taxes paid
* refund claimed, and
* input tax credit availed
* Assessment of compliances with provisions of GST law and rules.
All the registered taxable persons having a turnover beyond the prescribed limit are required to get their accounts audited from a Chartered Accountant or a Cost Accountant and file the audit report and the reconciliation statement with the proper officer.
There are also provisions for a 'Special audit' to be carried out by a Chartered Accountant or a Cost Accountant. Such audit can be allotted after prior approval of Commissioner in the circumstances where a view is made by an of

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Jharkhand assembly passes GST bill
GST
Dated:- 27-4-2017

Ranchi, Apr 27 (PTI) Jharkhand Assembly today passed the Jharkhand Goods and Services Taxes Bill, 2017 to pave the way for roll out of GST from July 1.
A one-day special session of the assembly was convened to take up the bill.
Urban Development Minister C P Singh placed the bill in the assembly which was passed by voice vote.
Later, Singh told reporters that the bill was passed unanimously.
He said it is a step towards &

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Genrating of Sales Invoice in Different unit
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 26-4-2017 Last Reply Date:- 28-4-2017 Goods and Services Tax – GST
Got 1 Reply
GST
We are having two different manufacturing unit in same state. Since we have registered in Central Excise in different jurisdiction we have using different serial number for issuing sale invoice.
After implementation of GST Act, can we continue to do so or we have to keep common invoice under one GST

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