Author: admin_gst

GOODS & SERVICES TAX (GST) (Status as on 01st April, 2017)
GST
Dated:- 7-4-2017

GOODS & SERVICES TAX (GST) (Status as on 01st April, 2017)
=============
Document 1
GOODS &
SERVICES TAX
(GST)
Status as on 01st April, 2017)
1
PRESENTATION PLAN
WHY GST: BENEFITS
ââ€“ EXISTING INDIRECT TAX STRUCTURE
ââ€“ FEATURES OF CONSTITUTION AMENDMENT ACT
*GST COUNCIL
ââ€“ MAIN FEATURES OF GST LAW
Ü€
GSTN
âÅ“° ROLE OF CBEC
WAY FORWARD
2
WHY GST?
BENEFITS
3
WHY GST: BENEFITS
To Trade
âËœ Reduction in multiplicity of
taxes
To Consumers ܀
âËœ Mitigation of cascading/ double
taxation
âËœ More efficient neutralization of
taxes especially for exports
âËœ Development of common
national market
âËœ 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
âËœ Uniform prices
through

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

.2016
Key Features:
â–¡ Concurrent jurisdiction for levy & collection of GST
by the Centre & the States – Article 246A
âËœ Centre to levy & collect IGST on supplies in the
course of inter-State trade or commerce including
imports Article 269A
–
9
….FEATURES OF CAA……..
ââ€“ Key Features contd.
âËœ Compensation for loss of revenue to States for five years on
recommendation of GSTC – Clause 19
âËœ 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.
âËœ 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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ent may convert existing Area based exemption
schemes into reimbursement based scheme
14
âÅ“° Decisions:
…GST COUNCIL….
âËœ 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
ââ€“ Decisions:
â–¡ CGST, UTGST, IGST, SGST & GST Compensation Law
approved
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 sin
goods
âËœ Rules on registration, payment, retur

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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:
âËœ 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:
âËœ Elaborate principles devised for determining the time of
supply of goods or services with following being crucial
determinants with certain exceptions:
Date on which supplier issues invoice
Date on which supplier receives the payment, whichever is
earlier
â–¡ Tax is to be paid on Transaction va

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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):
âËœ ITC cannot be availed after filing of return for the month
of September of next Financial Year or filing of Annual
Return
âËœ ITC available only on provisional basis for a period of
two months until payment of tax and filing of valid
return by the supplier
âËœ 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….
ââ€“ Registration.
âËœ PAN based Registration
required to be obtained for each State from where taxable
supplies are being made
âËœ A person having multiple business verticals in a State
may obtain separate registration for each business
vertical
â

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tes
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….
ââ€“ 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
âËœ Payment of Tax is made by way of the debit in the
electronic cash or credit ledger
27
…MAIN FEATURES OF LAW….
ââ€“ Payment:
Cross-utilization of ITC between CGST & IGST, between
SGST/UTGST & IGST allowed
Hierarchy for discharging payments of various tax
liabilities
âËœ Provision for TDS on certain entities
Ã

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Self-assessment of tax
âËœ Provisions for assessment of non-filers, unregistered
persons & summary assessments in certain cases
âËœ Provision for provisional assessment on request of
taxable person – to be finalized in six months
âËœ 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
âËœ Audit to be completed within 3 months, extendable by a
further period of 6 months
31
…MAIN FEATURES OF LAW….
ââ€“ 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 person can settle demand at any stage, right
from audit/investigation to the stage of passing of
adjudication order and even thereafter
32
….MAIN FEATURES OF

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tal for
taxpayers-
âËœ submit registration application
âËœ file returns
âËœ make tax payments
To develop back end modules for 25 States (MODEL-II)
ââ€“ 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
ââ€“ Prominent role as custodian of Centre's fiscal destiny in relation
to indirect taxes
ââ€“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 System with GSTN
*
Training of officials of both Centre & States
39
WAY FORWARD
40
40
WAY FORWARD….
Passage of CGST, UTGST, and IGST & GST Compensation

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Rajya Sabha Greenlights GST Rollout Starting July 1, Following Lok Sabha Approval for Major Tax Reform.

GST
Rajya Sabha today cleared the decks for the rollout of the historic Goods and Serv

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

valuation for related person
Query (Issue) Started By: – arun aggarwal Dated:- 6-4-2017 Last Reply Date:- 14-4-2017 Goods and Services Tax – GST
Got 7 Replies
GST
Sir
I would like to knows the procedure of valuation under GST regime as compare to the excise rules of today, in the case where intermidate goods manufactured and supplies to a related firm and valuation done as per CAS 4 and charged accordingly.
Tnx
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
No clear picture in GST in this regard.
Reply By arun aggarwal:
The Reply:
Tnx
and lets wait for the clarification in this regard.
Arun
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 15 (1) of CGST Act, 2017 "the value of a supply of good

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

d by the Government.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
As per rule 2 of Draft Rules dated 31-3-2017 for GST – Determination of Value of Supply –
"The value of the supply of goods or services or both between distinct persons as specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is made through an agent, shall,-
(a) be the open market value of such supply;
(b) if open market value is not available, be the value of supply of goods or services of like kind and quality;
(c) if value is not determinable under clause (a) or (b), be the value as determined by application of rule 4 or rule 5, in that order:
Provided where the recipient is el

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds twenty-five per cent or more of the outstanding voting stock or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family."
Reply By arun aggarwal:
The Reply:
Sir
As I am awailing certain area based exemptions, can I opt for the valuation as per sec 4 of GST means on cost and charge 110 % on supplies made to related parties for their captive cons

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST on Reimbursement of Expenses
Query (Issue) Started By: – SANDESH SHINDE Dated:- 6-4-2017 Last Reply Date:- 6-4-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Dear Sir,
Please explain the impact of Reimbursement of Expenses under GST regime and also advise regarding availment of GST credit on the expenses incurred by the Service provider.
Thanks and Regards, Sandesh Shinde.
Reply By KASTURI SETHI:
The Reply:
Sir,
No benefit of preparation for GST in advance as many chang

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST in India – Is it really a “One Nation One Tax”
By: – Rakesh Garg
Goods and Services Tax – GST
Dated:- 6-4-2017

1. Structure of GST in India
The term “GST” stands for “Goods and Services Tax”, and would be a comprehensive indirect tax levy in India on manufacture, sale and consumption of goods as well as services at the national level. Its main objectives are to cover most of the indirect tax levies into a single tax, replacing multiple tax levies, facilitating seamless credit across the entire supply chain, overcoming the limitation of current indirect tax structure, and creating efficiencies in the tax administration.
Its first target is to eliminate number of taxes and duties presently levied and imposed under the category 'indirect taxes' in India; and to achieve the same, it will subsume Central Excise Duty, CVD, SAD, Service Tax, Central Sales Tax, VAT, Entry Tax, Entertainment tax, Luxury tax, various Cesses relating to supply of goods or services, et

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ures as contemplated, it gives the fear that the basic intent of the Government, which is “ease of doing business”, has been diluted. It is often stated that the taxpayer shall file almost 37 returns per year under the GST. Let us understand various compliances through an illustration:
To illustrate: If ABC Ltd. have it Head Office at Delhi, Factory at U.P., and Warehouse cum Office at Haryana, HP and Punjab (Total 5 offices), it would have to make at least following compliances:
* ABC will have GST registrations in all the 5 states in CGST, IGST and respective State GST.
* It will be treated as distinct person for every State even for the purposes of CGST and IGST.
* Therefore, ABC would have 15 registrations on PAN India basis (CGST, IGST & SGST for each and every State).
* We understand that it would be treated separately in all the State GST Act. But, even for the purposes of CGST and IGST, even if governed by the same statute in every state, it would be considered as dist

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

y supply. If it is local supply, say in Delhi, charge CGST + Delhi GST; and if inter-State supply, charge IGST. Even for B2C transaction of more than specified value, it might have to ascertain the address of the customer, and charge tax accordingly. Since GST is a destination based tax, if a customer comes to Delhi from UP for making purchases, tax must go to UP.
ABC would maintain following ledgers for all 15 registrations separately: –
* Electronic Credit Ledger; b. Electronic Cash Ledger; c. Electronic liability Ledger.
These ledgers are State-specific: Amount cannot be transferred from one state to another.
It will pay tax very carefully for all the 15 GSTINs separately. If the IGST of, say, Delhi is wrongly paid as CGST of Delhi: then it shall first pay the IGST not paid, and then claim refund of CGST wrongly paid.
ABC will file separate returns for every tax period for all the 5 States. In every State, effectively there would be 3 returns (GSTR-1/2/3) for every tax per

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Bill, 2017, it would certainly be liable to pay GST on reverse charges basis, which would further add to its compliance list of all 15 registrations.
If ABC wants to transfer its GST credit rating to input services from one unit to another, it would require separate registration as Input Service Distributor.
ABC might have to deduct TDS on certain supplies; if yes, then separate TAN for deduction of TDS.
If ABC transfers its office from Delhi to Mumbai, it will get cancel its registration in Delhi, and obtain new registration in Maharashtra.
The list does not end here, and 5 to 6 points can easily be added looking at the nature of business. Above list certainly gives the apprehension whether GST is really a “One Nation One Tax”. Certainly, the Governments would not have intended the same; and therefore, the Governments and GST Council must come forward, study the GST legislations, rules and procedures deeper and between the lines, and make all the efforts to make it simpler, and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – COMPOSITION LEVY
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 6-4-2017

Composition levy
The term 'composition levy' has not been defined in Central Goods and Services Tax Bill, 2017 ('Bill' for short). Section 10 of the Bill provides for the composition levy. Section 10(1) provides that notwithstanding anything to the contrary contained in this Act but subject to the provisions of Section 9(3) and 9(4) of the Bill (Dealing with reverse charge mechanism), a registered person may opt to pay, in lieu of GST payable by him, if his aggregate turnover in the preceding financial year did not exceed ₹ 50 lakhs. The Government may increase the above said limit to ₹ 1 crore on the recommendation of GST Council.
Aggregate turnover
Section 2(6) of the Bill defines the term 'aggregate turnover' as the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s are having the same PAN, the registered person shall not be eligible to opt unless such registered persons opt to pay tax under this scheme.
Lapse of option
Section 10(3) provides that the option availed by a registered person shall lapse with effect from the day on which the aggregate turnover during a financial year exceeds ₹ 50 lakhs.
Rate for composition levy
Section 10(1) of the Bill reads with Rule 5 of Composition Rules provides that the category of registered persons, eligible for composition of levy and the specified rate as detailed below-
* Manufacturers, other than manufacturers of such goods as may be notified by the Government – 1%;
* Suppliers making supplies referred to para 6 (b) of Schedule II – 2.5%;
* Any other supplier eligible for composition of levy under Section 10 and the rules – 0.5%
Section 10(1) provides that the an eligible registered person may opt to pay an amount calculated at the above rate but not exceeding-
* 1% of the turnover in

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

he shall pay tax under Section 9(3) or 9(4) on inward supply of goods or services or both received from un-registered person;
* he was not engaged in the manufacture of goods as notified in Section 10(2)(e) during the preceding financial year.
Section 10(4) provides that a taxable person, who opts this scheme, shall not collect any tax from the recipient on supplies made by him nor shall be entitled to any credit of input tax.
Intimation of option
Rule 1 makes an obligation to the person who opt composition levy to intimate the same in the prescribed form.
Rule 1(1) provides that any person who has been granted registration on a provisional basis shall electronically file intimation in Form GST CMP – 01, duly signed, on the common portal prior to the appointed day, but not later than 30 days after the said day. Such period may be extended by the Commissioner in this behalf. Where the intimation is filed after the appointed day, the registered person shall not collect any tax fr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Rule 1(1) or Rule 1(3) in respect of any place of business in any State or Union territory shall be deemed to be intimation in respect of all other places of business registered on the same PAN.
Stock details
Rule 1(4) provides that any person who files an intimation to pay tax shall furnish the details of stock, including the inward supply of goods received from unregistered persons, held by him on the day preceding the date from which he opts to pay tax under the said section, electronically in Form GST CMP – 03, on the common portal, within 60 days of the date from which the option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf.
Effective date
Rule 2(1) provides that the option to pay shall be effective from the beginning of the financial year, where the intimation is filed under Rule 1(3) and the appointed date where intimation is filed under Rule 1(1). The intimation shall be considered only after grant of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e show cause notice in Form GST CMP – 06, the proper officer shall issue an order in Form GST CMP 07 within 30 days of receipt of such reply, either accepting the reply or denying the option to pay tax under composition levy from the date of option or from the date of the event concerning such contravention, as the case may be.
Such person shall electronically furnish at the common portal, a statement in Form GST ITC 01 containing the details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock by him on the date on which the option is withdrawn or denied, within 30 days from the date from which the option is withdrawn or from the order passed in GSTCMP 07.
Any intimation for withdrawal or denial of the option in respect of any place of business in any State or Union territory shall be deemed to be intimation in respect of all other places of business registered on the same PAN.
Penalty
Section 10(5) provides that if the proper officer has re

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ing all conditions). During 2nd year 2018-19, his turnover crosses 50 lakhs (say in December 2018) and he comes out of composition levy for remaining period. In 3rd year 2019-20, his turnover again falls below 50 lakhs. Can he opt for composition levy for 4th year 2020-21 based on the condition of previous year i.e. 2019-20 turnover below ₹ 50 lakhs?
Dated: 7-4-2017
Reply By MARIAPPAN GOVINDARAJAN as =
The point raised both of the experts are to be clarified by the Government.
Dated: 7-4-2017
Reply By CA.LALIT MUNOYAT as =
Well so far as the rates are concerned, they would be double considering both CGST & SGST Act. This has been clarified by the Government.
Secondly so far as the eligibility condition is concerned, he would be eligible for the 4th year 2020-21 based on the condition of previous year i.e. 2019-20 turnover below ₹ 50 lakhs?. This is clear from the language of the section itself.
Dated: 7-4-2017
Scholarly articles for knowledge sharing by authors,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) BILL, 2017 – AN OVERVIEW
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 5-4-2017

Constitution amendment
Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016 provides that parliament shall, by law, on the recommendations of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years.
Compensation to States
The Goods and Services Tax (Compensation to States) Bill, 2017 ('Bill' for short) provides for the following-
* to provide that the financial year 2015-16 shall be taken as the base year for calculating compensation amount payable to States;
* the revenue to be compensated shall consist of revenues from all taxes levied by the States which are to be subsumed under the GST, as audited by C&AG;
* to provide that the compensation shall be r

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

on lapsable Fund known as the GST Compensation Fund in the Public Account and all amounts payable to the States as GST compensation shall be paid from GST Compensation Fund; and
* any residual amount left in the Compensation Fund after five year compensation period shall be shared equally between the Centre and the States.50% of the amount remaining unutilized in the GST Compensation Fund at the end of the transition period shall be transferred to the Consolidated Fund of India as the share of the Centre and the balances of 50% shall be distributed amongst the States and Union Territories in the ratio of their total revenues from the SGST or UGST, as the case may be, in the last year of the transition period.
Bill
The Bill has been introduced in the Lok Sabha. The Bill has 14 sections and one schedule. This Act extends to whole of India. The bill provides for-
* ascertaining the base year for calculation of compensation;
* calculation of base year revenue;
* projected revenue

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ng taxed, imposed which are subsumed into GST-
* VAT, sales tax, purchase tax,tax collected on works contract or any other tax levied by the concerned State under the erstwhile entry 54 of List II of VII Schedule to the Constitution;
* the CST;
* the entry tax, octroi,local body tax or any other tax levied by the concerned State under the erstwhile entry 52 of List II of the VII Schedule to the Constitution;
* the taxes on luxuries, including taxes on entertainments, amusements, betting and gambling or any other tax levied by the concerned State under the erstwhile entry 62 of List II of the VII Schedule to the constitution;
* the taxes on advertisement or any other tax levied by the concerned State under the erstwhile entry 55 of List II of the VII Schedule to the Constitution;
* the duties of excise on medicinal and toilet preparation levied by the Union but collected and retained by the concerned State Government under the erstwhile Article 268 of the Constitution;
* a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

erstwhile entry 54 of List II of VII Schedule to the Constitution prior to the Constitution (One Hundred and First Amendment) Act, 2016 on the sale or purchase of petroleum crude, High speed diesel, motor spirit, natural gas, aviation turbinefuel and alcoholic liquor for human consumption;
* tax levied under CST on the sale or purchase of petroleum crude, High speed diesel, motor spirit, natural gas, aviation turbinefuel and alcoholic liquor for human consumption;
* any cess imposed by the State Government on the sale or purchase of petroleum crude, High speed diesel, motor spirit, natural gas, aviation turbinefuel and alcoholic liquor for human consumption;
* the entertain tax levied by the State but collected by local bodies under any Act under the erstwhile entry 62 of List II of the VII Schedule to the Constitution, prior to coming into force of the provisions of Constitution (One Hundred and First Amendment) Act, 2016;
Projected revenue for any year
Section 6 provides that

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

te tax collected by the State, net of refunds given by the State;
* the IGST apportioned to that State;
* any collection of taxes on account of the taxeslevied by the respective State under the Act, net of refunds of such taxes
as certified by the C&AG;
* the total compensation payable shall be the difference between the projected revenue and the actual revenue calculated by a State.
Section 7(4) provides the method for calculation of the loss of revenue at the end of every two months is as detailed below-
* the projected revenue that could have been earned by the State in absence of GST till the end of the relevant two months shall be calculated on a pro-rata basis as a percentage of total projected revenue for any financial year during the transition period;
* the actual revenue collected by a State till the end of relevant two months period shall be-
* the actual revenue from State tax collected by the State, net of refunds given by the State;
* the IGST apportioned

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ovides for the levy of a cess on such intra-State supplies of goods or services or both and such inter-State supplies of goods or services or both as provided in Section 5 of IGST Act, for the purposes of providing compensation to the State for loss of revenue on implementation of GST with effect from the date from which the provisions of CGST Act is brought into force, for a period of 5 years or for such period as may be prescribed on the recommendation of the Council. Such levy is not there in case of composition levy under Section 10 of CGST.
The cess shall be levied as specified below, on the basis of value, quantity or on such basis at such rate not exceeding the rate as notified by the Central Government on recommendations of the GST Council-
Sl. No.
Description of supply of goods or services
Tariff item, heading, sub heading, Chapter or supply of goods or services, as the case may be
The maximum rate at which GST compensation cess may be collected
(1)
(2)
(3)
(4)
1
Pa

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

pplies of goods or services or both. The cess on goods imported into India shall be levied and collected in accordance to Section 3 of the Customs Tariff Act, 1975 at the point when duties of customs are levied on a value determined under Customs Tariff Act, 1975.
Payments, returns and refunds
Section 9 provides that every taxable person shall-
* pay the amount of cess as payable under this Act in such manner;
* furnish such refunds in such forms, along with the returns to be filed under the CGST Act; and
* apply for refunds of such cess paid in such form
as may be prescribed.
Crediting proceeds of Cess to Fund
Section 10 provides that the proceeds of the cess shall be credited to a non lapsable fund known as the GST Compensation Fund, which shall form part of the public account of India. It shall be utilized for purposes specified in Section 8. All amounts payable to the States shall be paid out of the fund.
Distribution of balance amount
50% of the amount remaining unut

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the levy and collection of the cess on the intra-State supply of goods and services.
Applications of certain provisions of IGST Act
Section 11(2) provides that the provisions of IGST Act and the rules made there under, including those relating to assessment, input tax credit, non levy, short levy, interest, appeals, offences and penalties, shall, mutatis and mutandis apply in relation to the levy and collection of the cess on such inter-State supplies.
Input tax credit
The proviso to Section 11 provides that the input tax credit in respect of cess on supply of goods and services leviable shall be utilized only towards payment of said cess on supply of goods and services leviable.
Power to remove difficulties
Section 14 provides that if any difficulty arises in giving effect to the provisions of this Act, the Central Government may, on the recommendations of the Council, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of the A

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Conditions for purposes of appearance
Rule 25
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
25. Conditions for purposes of appearance
(1) No person shall be eligible to attend before any authority as a goods and services tax practitioner in connection with any proceedings under the Act on behalf of any registered or unregistered person unless he has been enrolled under rule 24.
(2) A goods and services tax practitioner attending on behalf of a registered or an unregi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Provisions relating to a goods and services tax practitioner
Rule 24
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
24. Provisions relating to a goods and services tax practitioner
(1) An application in FORM GST PCT-01 may be made electronically through the Common Portal either directly or through a Facilitation Centre notified by the Commissioner for enrolment as goods and services tax practitioner by any person who:
(a) (i) is a citizen of India;
(ii) is a person of sound mind;
(iii) is not adjudicated as insolvent;
(iv) has not been convicted by a competent court,-
and satisfies any of the following conditions: –
(b) that he is a retired officer of the Commercial Tax Department of any State Government or of the Central Board of Excise and Customs, Department of Revenue, Government of India, who, during his service under the Government, had worked in a post not lower in rank than that of a Group-B gazetted officer for a period of not less than two yea

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

India.
(2) On receipt of the application referred to in sub-rule (1), the officer authorised in this behalf shall, after making such enquiry as he considers necessary, either enrol the applicant as a goods and services tax practitioner and issue a certificate to that effect in FORM GST PCT-02 or reject his application where it is found that the applicant is not qualified to be enrolled as a goods and services tax practitioner.
(3) The enrolment made under sub-rule (2) shall be valid until it is cancelled:
Provided that no person enrolled as a goods and services tax practioner shall be eligible to remain enrolled unless he passes such examination conducted at such periods and by such authority as may be notified by the Commissioner on the recommendations of the Council:
Provided further that no person to whom the provisions of clause (c) of sub-section (1) apply shall be eligible to remain enrolled unless he passes the said examination within a period of one year from the appointed

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

7) Where a statement required to be furnished by a registered person has been furnished by the goods and services tax practitioner authorised by him, a confirmation shall be sought from the registered person over email or SMS and the statement furnished by the goods and services tax practitioner shall be made available to the registered person on the Common Portal:
Provided that where the registered person fails to respond to the request for confirmation till the last date of furnishing of such statement, it shall be deemed that he has confirmed the statement furnished by the goods and services tax practitioner.
(8) A goods and services tax practitioner can undertake any or all of the following activities on behalf of a registered person, if so authorised by him to:
(a) furnish the details of outward and inward supplies;
(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund; and
(e) file a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Details of inward supplies of persons having Unique Identity Number
Rule 23
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
23. Details of inward supplies of persons having Unique Identity Number
(1) Every person who has been issued a Unique Identity Number and claims refund of the taxes paid on his inward supplies, shall furnish the details of such supplies of taxable goods or services or both electronically in FORM GSTR-11, along with application for such refund claim

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Final return
Rule 22
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
22. Final return
Every registered person required to furnish a final return under section 45, shall furni

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Annual return
Rule 21
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
21. Annual return
(1) Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return as specified under sub-section (1) of section 44 electronically in FORM GSTR-9 through the Common Portal either directly or through a Facilitation Centre notified by the Comm

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Communication and rectification of discrepancy in details furnished by the e-commerce operator and the supplier
Rule 20
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
20. Communication and rectification of discrepancy in details furnished by the e-commerce operator and the supplier
(1) Any discrepancy in the details furnished by the operator and those declared by the supplier shall be made available to the supplier electronically in FORM GST MIS-3 and to the e-commerce operator electronically in FORM GST MIS-4 on the Common Portal on or before the last date of the month in which the matching has been carried out.
(2) A supplier to whom any discrepancy is made available under sub-rule (1) may make suitable rectifi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Matching of details furnished by the e-Commerce operator with the details furnished by the supplier
Rule 19
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
19. Matching of details furnished by the e-Commerce operator with the details furnished by the supplier
The following details relating to the supplies made through an e-Commerce operator, as declared in FORM GSTR-8, shall be matched with the corresponding details declared by the supplier in FORM GSTR-1-
(a) State of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Refund of interest paid on reclaim of reversals
Rule 18
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
18. Refund of interest paid on reclaim of reversals
The interest to be refunded under sub-section (9) of section 42 or sub-section (9) of section 43 shall be claimed by the registered person in his return in FORM GSTR-3 and shall be credited to his electronic cash ledger in FORM GST PMT-05 and the amount credited shall be available for payment of any future liability

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Claim of reduction in output tax liability more than once
Rule 17
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
17. Claim of reduction in output tax liability more than once
Duplication of claims for reduction in output tax liability in the details of outward supplies shall be communicated to the registered person in FORM GST MIS-1 electronically through the Common Portal.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxa

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Communication and rectification of discrepancy in reduction in output tax liability and reversal of claim of reduction
Rule 16
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
16. Communication and rectification of discrepancy in reduction in output tax liability and reversal of claim of reduction
(1) Any discrepancy in claim of reduction in output tax liability, specified in sub-section (3) of section 43, and the details of output tax liability to be added under sub-section (5) of the said section on account of continuation of such discrepancy, shall be made available to the registered person making such claim electronically in FORM GST MIS- 1 and the recipient electronically in FORM GST MIS-2 through the Common Po

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Final acceptance of reduction in output tax liability and communication thereof
Rule 15
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
15. Final acceptance of reduction in output tax liability and communication thereof
(1) The final acceptance of claim of reduction in output tax liability in respect of any tax period, specified in sub-section (2) of section 43, shall be made available electronically to the person making such claim in FORM GST MIS-1 through the Common P

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Matching of claim of reduction in the output tax liability
Rule 14
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
14. Matching of claim of reduction in the output tax liability
The following details relating to the claim of reduction in output tax liability shall be matched under section 43 after the due date for furnishing the return in FORM GSTR-3:-
(a) GSTIN of the supplier;
(b) GSTIN of the recipient;
(c) credit note number;
(d) credit note date; and
(e) tax amount:
Provided that where the time limit for furnishing FORM GSTR-1 under section 37 and FORM GSTR-2 under section 38 has been extended, the date of matching of claim of reduction in the output tax liability shall be extended accordingly:
Provide

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Claim of input tax credit on the same invoice more than once
Rule 13
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
13. Claim of input tax credit on the same invoice more tha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit
Rule 12
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
12. Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit
(1) Any discrepancy in the claim of input tax credit in respect of any tax period, specified in sub-section (3) of section 42 and the details of output tax liable to be added under sub-section (5) of the said section on account of continuation of such discrepancy, shall be made available to the recipient making such claim electronically in FORM GST MIS-1 and to the supplier electronically in FORM GST MIS-2 through the Common

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Final acceptance of input tax credit and communication thereof
Rule 11
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
11. Final acceptance of input tax credit and communication thereof
(1) The final acceptance of claim of input tax credit in respect of any tax period, specified in sub-section (2) of section 42, shall be made available electronically to the registered person making such claim in FORM GST MIS-1 through the Common Portal.
(2) The claim of input tax credi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Matching of claim of input tax credit
Rule 10
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
10. Matching of claim of input tax credit
The following details relating to the claim of input tax credit on inward supplies including imports, provisionally allowed under section 41, shall be matched under section 42 after the due date for furnishing the return in FORM GSTR-3
(a) GSTIN of the supplier;
(b) GSTIN of the recipient;
(c) invoice or debit note number;
(d) invoice or debit note date; and
(e) tax amount:
Provided that where the time limit for furnishing FORM GSTR-1 specified under section 37 and FORM GSTR-2 specified under section 38 has been extended, the date of matching relating to claim of input tax cr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Notice to non-filers of returns
Rule 9
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
9. Notice to non-filers of returns
A notice in FORM GSTR-3A shall be issued, electronic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Form and manner of submission of statement of supplies through an e-commerce operator
Rule 8
Bill
RETURNS
GST – Returns – Final Draft Rules 3-6-2017
8. Form and manner of submission of statement of supplies through an e-commerce operator
(1) Every electronic commerce operator required to collect tax at source under section 52 shall furnish a statement in FORM GSTR-8 electronically on the Common Portal, either directly or from a Facilitation Centre notified by the Commissioner,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =