Author: admin_gst

Why is Dual GST required?
Question 9
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 9. Why is Dual GST required?
Ans. India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise

= = = = = = = =

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

= = = = = = = =

What type of GST is proposed to be implemented?
Question 8
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 8. What type of GST is proposed to be implemented?
Ans. It would be a dual GST with the Centre and States simultaneously levying it on a common tax base. The GST to be levied by the Centre on intra-State supply of goods and / or services would be called the Central GST (CGST) and that to be levied by the States/ Union territory wou

= = = = = = = =

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

= = = = = = = =

What will be status of Tobacco and Tobacco products under the GST regime?
Question 7
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 7. What will be status of Tobacco and Tobacco products under the GST regime?
Ans. Tobacco and tobacco products would be subject to GST. In addition, the Centre would have the power to levy Central Excise duty on these products.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules,

= = = = = = = =

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

= = = = = = = =

What will be the status in respect of taxation of above commodities after introduction of GST?
Question 6
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 6. What will be the status in respect of taxation of above commodities after introduction of GST?
Ans. The existing taxation system (VAT & Central Excise) will continue in respect of the above commodities.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, R

= = = = = = = =

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

= = = = = = = =

Which are the commodities proposed to be kept outside the purview of GST?
Question 5
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 5. Which are the commodities proposed to be kept outside the purview of GST?
Ans. Article 366(12A) of the Constitution as amended by 101st Constitutional Amendment Act, 2016 defines the Goods and Services tax (GST) as a tax on supply of goods or services or both, except supply of alcoholic liquor for human

= = = = = = = =

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

= = = = = = = =

What principles were adopted for subsuming the above taxes under GST?
Question 4
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. What principles were adopted for subsuming the above taxes under GST?
Ans. The various Central, State and Local levies were examined to identify their possibility of being subsumed under GST. While identifying, the following principles were kept in mind:
(i) Taxes or levies to be subsumed should be primari

= = = = = = = =

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

= = = = = = = =

Which of the existing taxes are proposed to be subsumed under GST?
Question 3
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. Which of the existing taxes are proposed to be subsumed under GST?
Ans. The GST would replace the following taxes:
(i) taxes currently levied and collected by the Centre:
a. Central Excise duty
b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special I

= = = = = = = =

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

= = = = = = = =

What exactly is the concept of destination based tax on consumption?
Question 2
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. What exactly is the concept of destination based tax on consumption?
Ans. The tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Tax

= = = = = = = =

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

= = = = = = = =

What is Goods and Services Tax (GST)?
Question 1
Bill
Overview of Goods and Services Tax (GST)
Faq On GST (2nd Edition) Dated 31.3.2017
1. Overview of Goods and Services Tax (GST)
Q 1. What is Goods and Services Tax (GST)?
Ans. It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value ad

= = = = = = = =

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

= = = = = = = =

FOREWORD

Bill
FOREWORD
Faq On GST (2nd Edition) Dated 31.3.2017
FOREWORD
The compilation of frequently asked questions on GST brought out by the apex training institute under the
Central Board of Excise & Customs (CBEC) the National Academy of Customs, Excise & Narcotics (NACEN), has been extremely well received. These GST FAQs were released on 21st September, 2016 by the Hon'ble Finance Minister and were based on the Model GST Law as on June, 2016. The GST FAQs were translat

= = = = = = = =

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

= = = = = = = =

Rate of tax of the composition levy
Rule 5
Bill
Composition Rules
GST – Composition Rules – Final Draft Rules 18-5-2017
5. Rate of tax of the composition levy
The category of registered persons, eligible for composition levy under section 10 and these rules, specified in column (2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of the said Table:
Sl No.
Category of registered persons
Rate of tax
(1)
(2)
(3)
1.
Manufacturers, other

= = = = = = = =

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

= = = = = = = =

Validity of composition levy
Rule 4
Bill
Composition Rules
GST – Composition Rules – Final Draft Rules 18-5-2017
4 Validity of composition levy
(1) The option exercised by a registered person to pay tax under section 10 shall remain valid so long as he satisfies all the conditions mentioned in the said section and these rules.
(2) The person referred to in sub-rule (1) shall be liable to pay tax under sub-section (1) of section 9 from the day he ceases to satisfy any of the conditions mentioned in section 10 or these rules and shall issue tax invoice for every taxable supply made thereafter and he shall also file an intimation for withdrawal from the scheme in FORM GST CMP-04 within seven days of occurrence of such event

= = = = = = = =

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

= = = = = = = =

icer shall issue an order in FORM GST CMP-07 within thirty days of receipt of such reply, either accepting the reply, or denying the option to pay tax under section 10 from the date of option or from the date of the event concerning such contravention, as the case may be.
(6) Every person who has furnished an intimation under sub-rule (2) or filed an application for withdrawal under sub-rule (3) or a person in respect of whom an order of withdrawal of option has been passed in FORM GST CMP-07 under sub-rule (5), may electronically furnish at the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, a statement in FORM GST ITC-01 containing details of the stock of inputs and inputs contained in semi-f

= = = = = = = =

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

= = = = = = = =

Conditions and restrictions for composition levy
Rule 3
Bill
Composition Rules
GST – Composition Rules – Final Draft Rules 18-5-2017
3. Conditions and restrictions for composition levy
(1) The person exercising the option to pay tax under section 10 shall comply with the following conditions:
(a) he is neither a casual taxable person nor a non-resident taxable person;
(b) the goods held in stock by him on the appointed day have not been purchased in the course of inter-State trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State, where the option is exercised under sub-rule (1) of rule 1;
(c) the goods held in stoc

= = = = = = = =

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

= = = = = = = =

Effective date for composition levy
Rule 2
Bill
Composition Rules
GST – Composition Rules – Final Draft Rules 18-5-2017
2. Effective date for composition levy
(1) The option to pay tax under section 10 shall be effective from the beginning of the financial year, where the intimation is filed under sub-rule (3) of rule 1 and the appointed day where intimation is filed under sub-rule (1) of the said rule.
(2) The intimation under sub-rule (2) of rule 1 shall be considered only

= = = = = = = =

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

= = = = = = = =

Intimation for composition levy
Rule 1
Bill
Composition Rules
GST – Composition Rules – Final Draft Rules 18-5-2017
Chapter
COMPOSITION RULES
1. Intimation for composition levy
(1) Any person who has been granted registration on a provisional basis under sub-rule (1) of rule Registration.17 and who opts to pay tax under section 10, shall electronically file an intimation in FORM GST CMP-01, duly signed or verified through electronic verification code (EVC), on the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the appointed day, but not later than thirty days after the said day, or such further period as may be extended by the Commissioner in this behalf:
Provided

= = = = = = = =

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

= = = = = = = =

year for which the option to pay tax under the aforesaid section is exercised and shall furnish the statement in FORM GST ITC-3 in accordance with the provisions of sub-rule (4) of rule ITC.9 within sixty days from the commencement of the relevant financial year,
(4) Any person who files an intimation under sub-rule (1) to pay tax under section 10 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, either directly or through a Facilitation Centre notified by the Commissioner, within sixty days of the date from which the option for c

= = = = = = = =

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

= = = = = = = =

Rate of exchange of currency, other than Indian rupees, for determination of value
Rule 8
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
8. Rate of exchange of currency, other than Indian rupees, for determination of value
The rate of exchange for determination of value of taxable goods or services or both shall be the applicable reference rate for that currency as determined by the Reserve Bank of India on the date o

= = = = = = = =

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

= = = = = = = =

Value of supply of services in case of pure agent
Rule 7
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
7. Value of supply of services in case of pure agent
Notwithstanding anything contained in these rules, the expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely:-
(i) the supplier acts as a pure agent of the recipient of the supply, when he makes payment to the third party on authorization by such recipient;
(ii) the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice i

= = = = = = = =

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

= = = = = = = =

amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account .
Illustration. Corporate services firm A is engaged to handle the legal work pertaining to the incorporation of Company B. Other than its service fees, A also recovers from B, registration fee and approval fee for the name of the company paid to Registrar of the Companies. The fees charged by the Registrar of the companies registration and approval of the name are compulsorily levied on B. A is merely acting as a pure agent in the payment of those fees. Therefore, A's recovery of such expenses is a disbursement and not part of the value of supply made by A to B.
–
Statute, statutory provisions legislation, la

= = = = = = = =

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

= = = = = = = =

Determination of value in respect of certain supplies
Rule 6
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
6. Determination of value in respect of certain supplies
(1) Notwithstanding anything contained in these rules, the value in respect of supplies specified below shall, at the option of the supplier, be determined in the manner provided hereinafter.
(2) The value of supply of services in relation to purchase or sale of foreign currency, including money changing, shall be determined by the supplier of service in the following manner:-
(a) For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the difference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of India (RBI) reference rate for that currency at that time, multiplied by the total units of currency:
Provided that in case where the RBI reference rate for a currency is not av

= = = = = = = =

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

= = = = = = = =

f a per cent. of the gross amount of currency exchanged for an amount exceeding one lakh rupees and up to ten lakh rupees; and
(iii) five thousand and five hundred rupees and one tenth of a per cent. of the gross amount of currency exchanged for an amount exceeding ten lakh rupees, subject to maximum amount of sixty thousand rupees.
(3) The value of supply of services in relation to booking of tickets for travel by air provided by an air travel agent, shall be deemed to be an amount calculated at the rate of five percent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international bookings of passage for travel by air.
Explanation – For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare on which commission is normally paid to the air travel agent by the airline.
(4) The value of supply of services in relation to life insurance business shall be:
(a) the gross premium cha

= = = = = = = =

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

= = = = = = = =

ll be the difference between the selling price and purchase price and where the value of such supply is negative it shall be ignored:
Provided that the purchase value of goods repossessed from a defaulting borrower, who is not registered, for the purpose of recovery of a loan or debt shall be deemed to be the purchase price of such goods by the defaulting borrower reduced by five percentage points for every quarter or part thereof, between the date of purchase and the date of disposal by the person making such repossession.
(6) The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services or both shall be equal to the money value of the goods or services or both redeemable against such token, voucher, coupon, or stamp.
(7)The value of taxable services provided by such class of service providers as may be notified by the Government on the recommendations of the Council as referred to in paragraph 2 of

= = = = = = = =

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

= = = = = = = =

Residual method for determination of value of supply of goods or services or both
Rule 5
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
5. Residual method for determination of value of supply of goods or services or both
Where the value of supply of goods or services or both cannot be determined under rules 1 to 4, the same shall be determined using reasonable means consistent with the principles and general provision

= = = = = = = =

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

= = = = = = = =

Value of supply of goods or services or both based on cost
Rule 4
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
4. Value of supply of goods or services or both based on cost
Where the value of a supply of goods or services or both is not determinable by any of the preceding rules, the value shall be one hundred and ten percent of the cost of production or manufacture or cost of acquisition of such goods or cost of pr

= = = = = = = =

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

= = = = = = = =

Value of supply of goods made or received through an agent
Rule 3
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
3. Value of supply of goods made or received through an agent
The value of supply of goods between the principal and his agent shall,-
(a) be the open market value of the goods being supplied, or at the option of the supplier, be ninety percent of the price charged for the supply of goods of like kind and

= = = = = = = =

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

= = = = = = = =

Value of supply of goods or services or both between distinct or related persons, other than through an agent
Rule 2
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
2. Value of supply of goods or services or both between distinct or related persons, other than through an agent
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

= = = = = = = =

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

= = = = = = = =

Value of supply of goods or services where the consideration is not wholly in money
Rule 1
Bill
Determination of Value of Supply
GST – Determination of Value of Supply – Final Draft Rules 18-5-2017
Chapter ___
Determination of Value of Supply
1. Value of supply of goods or services where the consideration is not wholly in money
Where the supply of goods or services is for a consideration not wholly in money, the value of the supply shall,
(a) be the open market value of such supply;
(b) if open market value is not available, be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money if such amount is known at the time of supply;
(c) if the value

= = = = = = = =

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

= = = = = = = =

Identification number for each transaction
Rule 4
Bill
PAYMENT OF TAX
GST – Payment Of Tax – Final Draft Rules 18-5-2017
4. Identification number for each transaction
(1) A unique identification number shall be generated at the Common Portal for each debit or credit to the electronic cash or credit ledger, as the case may be.
(2) The unique identification number relating to discharge of any liability shall be indicated in the corresponding entry in the electronic liability reg

= = = = = = = =

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

= = = = = = = =

Electronic Cash Ledger
Rule 3
Bill
PAYMENT OF TAX
GST – Payment Of Tax – Final Draft Rules 18-5-2017
3. Electronic Cash Ledger
(1) The electronic cash ledger under sub-section (1) of section 49 shall be maintained in FORM GST PMT-05 for each person, liable to pay tax, interest, penalty, late fee or any other amount, on the Common Portal for crediting the amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee or any other amount.
(2) Any person, or a person on his behalf, shall generate a challan in FORM GST PMT-06 on the Common Portal and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount.
(3) The deposit under sub-rule (2) shal

= = = = = = = =

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

= = = = = = = =

er authorised to recover outstanding dues from any person, whether registered or not, including recovery made through attachment or sale of movable or immovable properties;
(c) Proper officer or any other officer authorized for the amounts collected by way of cash, cheque or demand draft during any investigation or enforcement activity or any ad hoc deposit:
Provided further that the challan in FORM GST PMT-06 generated at the Common Portal shall be valid for a period of fifteen days.
Explanation.- For making payment of any amount indicated in the challan, the commission, if any, payable in respect of such payment shall be borne by the person making such payment.
(4) Any payment required to be made by a person who is not registered unde

= = = = = = = =

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

= = = = = = = =

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 make available a receipt to this effect.
(8) Where the bank account of the person concerned, or the person making the deposit on his behalf, is debited but no Challan Identification Number (CIN) 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.
(9) Any amount deducted under section 51 or collected under section 52 and claimed in FORM GSTR-02 by the registered taxable person from whom the said amount was deducted

= = = = = = = =

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

= = = = = = = =