Author: admin_gst

Section 16: Eligibility and conditions for taking input tax credit
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 10-5-2017

The new provision reads as follows:
(1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and within the time and manner specified in section 44, be entitled to take credit of input tax charged on any supply of goods or services to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person:
PROVIDED that credit of input tax in respect of pipelines and telecommunication tower fixed to earth by foundation or structural support including foundation and structural support thereto shall not exceed-
(a) one-third of the total input tax in the financial year in which the said goods are received,
(b) two-third of the total input tax, including the credit availed in the first f

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received in lots or instalments, the registered taxable person shall be entitled to take credit upon receipt of the last lot or installment:
PROVIDED FURTHER that where a recipient fails to pay to the supplier of services, the amount towards the value of supply of services along with tax payable thereon within a period of three months from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in the manner as may be prescribed.
Explanation.-For the purpose of clause (b), it shall be deemed that the taxable person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such taxable person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise.
(3) Where the registered taxable person has claimed

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m upto 1/3rd of total ITC in the first financial year and maximum upto 2/3rd till the end of second financial year.
Person supplying goods and services , where tax is payable under reverse charge is not eligible for input tax credit, which is in line with service tax provisions
ITC not available on the basis of supplementary invoices since debit note is required to be issued in lieu of supplementary invoice.
* ITC needs to be reversed in case of non payment towards value of supply of services within three months of the invoice date, however at present there is no information which is captured for payment to the supplier in the various returns. Therefore format of return to be changed. This provision unjust enriching the Government.
* Last day of availing credit is 12 months from the date invoice (in accordance with section 18 ) or 30 September of subsequent year or date of filing annual return whichever is earlier.
Visit us at www.capradeepjain.com and also at
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Export – Zero Rated supply – Whether amount received from the Foreign Currency (Non-Resident) account or Non-Resident External Account known as FCNR/NRE account maintained by the buyer can be treated as received in convertible foreign exchange for claiming benefit under GST
Section – 02 – Definitions. THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 02 – Definitions.
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
As per Regulation 4 of th

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Export of Services – For claiming exemption from GST or Benefit of Zero Rated supply under GST, whether receipt of consideration / payment in convertible foreign exchange is necessary or mandatory
Section – 02 – Definitions. THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 02 – Definitions.
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
Yes,
As per section 2(6) (iv) of the IGST Act, 2017 it is mandatory to receive the amount in convertib

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What is the meaning of Export of Services under GST
Section – 02 – Definitions. THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 02 – Definitions.
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
The term Export of services has been defined under section 2(6) of IGST Act, 2017 as under:
(6) “export of services” means the supply of any service when,
(i) the supplier of service is located in India;
(ii) the recipient of service is located

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Export of Goods – For claiming exemption from GST or Benefit of Zero Rated supply under GST, whether receipt of consideration / payment in convertible foreign exchange is necessary or mandatory
Section – 02 – Definitions. THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 02 – Definitions.
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
There is stipulation under the GST law for receipt of payment in convertible foreign exchange in case of E

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What is the meaning of export of goods under GST
Section – 02 – Definitions. THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 02 – Definitions.
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
As per section 2(5) of the IGST Act, 2017, the meaning of "Export of Goods" is:-
(5) “export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India;
TMI Short Notes ,

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What is the meaning of continuous journey under GST
Section – 02 – Definitions. THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 02 – Definitions.
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
As per section 2(3) of the IGST Act, 2017, the meaning of "continuous journey" is:
(3) “continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of

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What is the location of supplier of Goods for determination place of supply of goods under GST / IGST
Section – 10 – Place of supply of goods other than supply of goods imported into, or exported from India. THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 07 – Inter-State supply
Section – 10 – Place of supply of goods other than supply of goods imported into, or exported from India.
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017
The ter

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What is the location of supplier of services for determination place of supply of services under GST / IGST
Section – 002 – Definitions. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 002 – Definitions.
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
The definition regarding location location of the supplier of services has been given under Section 2 (71) of the CGST Act, 2017 as follows.
(71) “location of the supplier of services” means,-
(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is made from a place other than the place of business for which registration has been obtai

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What is the location of the recipient of services for determination place of supply of services under GST / IGST
Section – 002 – Definitions. THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
GST
Act-Rules
Dated:- 9-5-2017
Section – 002 – Definitions.
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
The definition regarding location location of the recipient of services has been given under Clause (70) of the CGST Act, 2017 as follows.
(70) “location of the recipient of services” means,-
(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for which registration has be

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stocks held
Query (Issue) Started By: – arun aggarwal Dated:- 9-5-2017 Last Reply Date:- 10-5-2017 Goods and Services Tax – GST
Got 2 Replies
GST
Sir
I would be holding stocks which will be CST paid with no excise applicable, when GST comes in,
I would like to know my status, can I take the input in GST of cst and.or I have to pay GST on balance stocks or have to pay GST at the time of sale?
Arun
Reply By KASTURI SETHI:
The Reply:
One must not get tension in advance. Still rule

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Wrongly Selected “Not Migrating to GST” at the time of filing return, instead of Enter your GST Username
Query (Issue) Started By: – Rajan Rajan Dated:- 8-5-2017 Last Reply Date:- 10-5-2017 Central Excise
Got 2 Replies
Central Excise
Wrongly Selected “Not Migrating to GST” at the time of filing April 2017 ER-1 return, instead of Enter your GST Username & Return Status shows Marked for Review. This may impact our GST Prov ID/ARN cancelled also Credit migration in GST regime. Plea

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Manpower supplier and transporters requires GST Registration?
Query (Issue) Started By: – K.Srinivasan Kuppuswamy Dated:- 8-5-2017 Last Reply Date:- 9-5-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Dear Experts
The present rule permits the assesse to pay the service tax under reverse charge mechanism for Manpower supply/GTA and rent a cab service. In the GST also the same will be continued as reverse charge.
whether the service providers such as Goods transport agency and m

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GST scheduled for July 1 rollout: Jaitley
GST
Dated:- 8-5-2017

Tokyo, May 8 (PTI) The Goods and Services Tax (GST) is on schedule for implementation from July 1 and will not lead to any significant increase in prices of goods although cost of some services may see a marginal hike, Finance Minister Arun Jaitley said today.
Hailed as the biggest tax reform since India's independence, GST will replace an array of central and state levies with a national sales tax, thereby creating a single market and making it easier to do business in the country.
Addressing CII-Kotak investors' round table here, Jaitley said that the GST Council, headed by him and comprising representatives of all states, will in the next few days fina

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er cent, is scheduled to meet next week to put different commodities and services in the decided tax brackets.
Demerit and luxury goods will attract the peak tax rate plus a cess.
Tax rate closed to the existing incidence of total central and state levies will be chosen as the slab for a good or services.
"As far as goods is concerned, the tax is not likely to increase at all. If at all, it may marginally come down because of the cascading impact not being there and therefore, it is not likely to be inflationary.
"As far as services is concerned, obviously, they will go up marginally and therefore, there will be some impact on this. So, goods and services may react a little differently," Jaitley said.
Asked if GST would

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rgest tax reforms in India since Independence a simpler, more efficient and cleaner taxation system would be introduced in the country which itself would ease the very processes of doing business," he said.
At the investors' meet, he said there would be no cascading impact of tax on tax under GST.
"GST being a more efficient tax, evasion will become difficult. In the current system, there is large evasion," he said.
Jaitley said the constitutional amendment gives time till September 15 for introduction of GST but the target date has been kept at July 1.
"So, we have a cushion of two-and-a-half months but it looks like we will be able to begin on schedule," he said.
Also, a simple IT network has been put in

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GST will make domestic companies more competitive
GST
Dated:- 8-5-2017

Vadodara, May 7 (PTI) Revenue Secretary Hasmukh Adhia is hopeful of a smooth transition to the GST regime and says it will help domestic firms to become more competitive apart from streamlining the taxation for all business activities.
"Unlike in other countries, the transition to the new tax regime would be smooth here because there are multiple points of taxation in the country. Hence, the possibility of sudden spurt in inflation is remote," said Adhia, who is spearheading the implementation of the Goods and Services Tax.
He was speaking at a conference on GST organised by the Federation of Gujarat Industries and the chief commissioner, Centra

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Changes in the definition of inputs,input services and capital goods
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 8-5-2017

GST DAILY DOSE OF UPDATION
Changes in definition of inputs, capital goods and input services
As evident from revised draft, the definitions of the input goods, capital goods and input services have undergone a major change or let's say, it has been simplified to the maximum extent possible. In the current laws, there are definitions containing specifications and restrictions to items and services on which cenvat can be taken or not. But in the new regime, these restrictions have been minimised. For eg. the definition of input is given in sec 2(52) as any goods other than capital goods used o

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s capital goods as they won't be capitalized. It is most probable that they will fall as residuary items in the definition of inputs.
Similarly it has been stated that goods or services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in course or furtherance of business won't be eligible for availing cenvat. But if the building is being capitalized then the inputs used in the building will be treated as capital goods and its cenvat should be allowed.
Reply By Sanketh Meri as =
Dear Sir,
In your Last Para, it has been mentioned that if the Immovable Property is capitalized, then its inputs should be allowed for ITC. Can you throw some more light on

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Ingredients of Invoice, debit note and credit note under CGST Act,2017
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 8-5-2017

Invoice is basic document for supply of goods or service. There are circumstances where Taxable Invoice need not be raised only Bill of Supply will be issued .what are circumstances where Taxable Invoice as well as Bill of supply need not be raised and instead Delivery Challan will be sufficient. Where there is difference in price downward and upward one need to issue supplementary invoice / debit note or credit note. What are the circumstance where revised invoice will be issued. Let us discuss one by one and focus on Section 31 to 34 of the GST Act ,2017 and Invoice Rule of the same.
Issue of tax Invoice and Bill of Supply
1. at the time of Removal of goods where there is movement of Goods.
2. delivery of goods where there is no movement of goods.
3. tax invoice not required where goods are valuing less than ₹ 200.
4.

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oucher shall be issued.
* In case of continuous supply of service, a] where due date of payment is fix as per contact, due date b] otherwise at the time of receipt of payment c] on completion of event if the event is linked.
Requirement
Tax Invoice
Bill of Supply
Supplementary/Revised Invoice Debit & Credit Note
Receipt Voucher
* Name, Address and GSTIN of supplier
Y
Y
Y
Y
Serial Number
Y
Y
Y
Y
Date of issue
Y
Y
Y
Y
Name, Address and GSTIN or UIN of recipient if register
Y
Y
Y
Y
Name, Address of recipient & address of delivery with name and code of state if recipient is unregistered where the value of taxable supply is ₹ 50000 or more.
Y
N
Y
Y
HSN Code or SAC
Y
Y
N
N
Description of Goods and Services
Y
Y
N
Y
Quantity in case of goods & unit or unique Quantity code
Y
N
N
N
Total value of Goods or Services or both
Y
Y
N
N
Taxable value of Goods or services after discount
Y
N
Y

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ve date of liability to date of certificate of registration. Provided that RP may issue consolidated invoice for supply to non registered person.
* In case of Input service distributor the following details to be inserted:
* Name address and GSTIN of input service distributor
* Serial number
* Date of issue
* Name address and GSTIN of recipient
* Amount of credit distributed
* signature
where the ISD is bank, financial institution or NBFC , they can issue any document without any serial number but having all information mentioned above.
Where the supplier of goods is GTA supplying goods by road shall issue tax invoice or any other document containing the gross weight of the consignment, name of the consignor and consignee, registration number of goods carriage, detail of goods transported, place of origin and destination, GSTIN of person liable for paying tax consignor, consignee or GTA and also containing other information as per rule -1.
Where the supplier is passe

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CONSUMER WELFARE FUND UNDER CGST ACT, 2017
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 8-5-2017

Refund
Section 54 of the Central Goods and Services Tax, 2017 ('Act' for short) provides the procedure for the refund of tax. Section 54(5) provides that the proper officer, on receipt of refund application, is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in section 57.
Consumer Welfare Fund
Section 57 provides that the Government shall constitute a Fund, to be called the Consumer Welfare Fund. There shall be credited to the Fund-
* The amount referred to in section 54(5);
* any income from investment of the amount credited to the Fund; and
* such other monies received by it
in such manner as may be prescribed.
Rule 4(4) provides that where the proper officer is satisfied that the amount refundable is n

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person; or
* the tax or interest borne by such other class of applicants as the Government may, on the recommendation of the Council, by notification, specify.
Rule 8 (1) provides that all credits to the Consumer Welfare Fund shall be made under Rule 4(4).
Utilization of Fund
Section 58(1) provides that all sums credited to the Fund shall be utilized by the Government for the welfare of the consumers in such manner as may be prescribed.
Rule 8(2) provides that any amount, having been credited to the Fund, ordered or directed as payable to any claimant by orders of the proper officer, appellate authority or Appellate Tribunal or court, shall be paid from the Fund.
Rule 8(4) provides that the Central/State Government shall, by an order, constitute a Standing Committee which shall make recommendations for proper utilization of the money credited to the Consumer Welfare Fund for the welfare of the consumers.
Rule 8(3) provides that any utilization of amount from the Consumer Welfa

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y be, State Government;
* to get the accounts of the applicants audited, for ensuring proper utilization of the grant;
* to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump sum, the sanctioned grant to the Committee, and to be subject to prosecution under this Act;
* to recover any sum due from any applicant in accordance with the provisions of the Act;
* to require any applicant, or class of applicants to submit a periodical report, indicating proper utilization of the grant;
* to reject an application placed before it on account of factual inconsistency, or inaccuracy in materialparticulars;
* to recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status and importance and utility of nature of activity under pursuit, after ensuing that the financial assistance provided shall not be misutilized;
* to identify beneficial and safe sectors, where investmen

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ake, significant contribution in formulation of standard mark of the products of mass consumption.
The proviso to Rule 8 provides that a consumer may make application for reimbursement of legal expenses incurred by him as a complainant in a consumer dispute, after its final adjudication.
All applications for grant from Consumer Welfare Fund shall be made by the applicant Member Secretary. The Committee shall not consider an application, unless it has been inquired into in material details and recommended for consideration accordingly, by Member Secretary.
Maintenance of accounts
Section 58(2) provides that the Government or the authority specified by it, shall maintain proper and separate account and for other relevant records in relation to the Fund and prepares an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India.
Guidelines
Rule 8(9) provides that the Central Consumer Protection Council established

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TAX DEDUCTED AT SOURCE UNDER ‘GST’ REGIME
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 6-5-2017

Who are liable to deduct tax at source?
Section 51 of the Central Goods and Services Tax Act, 2017 ('Act' for short) provides the procedure to deduct tax at source. Section 51(1) provides who are liable to deduct tax at source. Section 51(1) provide that notwithstanding anything to the contrary contained in this Act, the Central Government may mandate-
* a department or establishment of the Central Government or State Government; or
* local authority; or
* Governmental agencies; or
* Such persons or category of persons as may be notified by the Government on the recommendations of the Council.
to deduct tax at the rate of 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply under a contract, exceeds ₹ 2,50,000/-.
According to this section the required person

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in three working days from the due date of submission of application.
Value of supply
The explanation to Section 51(1) provides that for the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.
Time limit to pay
Section 51(2) provides that amount deducted as tax under Section 51 shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made.
Payment of tax
The deductor is to maintain electronic cash ledger and electronic liability register. The electronic cash ledger shall be maintained in Form GST PMT – 05 for the deductor to pay tax, interest, penalty, late fee or any other amount on the Common Portal for crediting the amount deposited. The deductor shall generate a challan in Form GST PMT – 06 on the Common Portal entering the details of the amount to be deposited by hi

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uthorized bank, a Challan Identification Number (CIN) will be generated by the collecting bank and the same shall be indicated in the challan. On receipt of CIN from the authorized bank, the said amount shall be credited to the electronic cash ledger of the person on whose behalf the deposit has been made and the Common Portal shall available a receipt to this effect.
Where the bank account of the person concerned, or the person making the deposit on his behalf but no Challan Identification Number is generated or generated but not communicated to the Common Portal the said person may represent electronically in Form GST PMT – 07 through the Common Portal to the Bank or electronic gateway through which the deposit was initiated.
The amount deducted thus shall be paid by debiting the electronic cash ledger and crediting the electronic liability register.
TDS certificate
Section 51(3) provides that the deductor shall furnish to the deductee a certificate mentioning therein the contra

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The details furnished by the deductor shall be made available electronically to each of the suppliers in Part C of Form GSTR – 2A on the Common Portal after the due date (10 days from the end of the month) of filing of Form GSTR – 07.
Payment of interest
Section 51(6) provides that if any deductor fails to pay to the Government the amount deducted as tax, he shall pay interest in accordance with the provisions of Section 50(1), in addition to the amount of tax deducted. The determination of the amount in default shall be made in the manner specified in section 73 or section 74.
Refund
Section 51(8) provides that the refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be filed under Section 54. The refund shall be claimed by filing an application in Form GST RFD – 01 electronically through the Common Portal. The application shall be accompany by the required documentary evidences, as applicable to establish that the refund is due to the

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nts of the applicant mentioned in his registration particulars and as specified in the application for refund.
Where upon examination of the application, the proper officer is satisfied that a refund is due and payable to the applicant, he shall make an order in Form GST RFD – 06, sanctioning the amount of refund to which the applicant is entitled, mentioning the amount, if any, refunded to him on a provisional basis, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable.
If the refund is delayed because of the reasons not on the part of the applicant, the interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.
Cancellation of registration
Where the proper officer is satisfied that a person to whom a certificate of registration in Form GST REG 06 has been issued is no longer liable to deduct tax a

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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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