Author: admin_gst

GST: PREPARING FOR JULY 2017 NOW!!
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 24-1-2017

GST Council's 9th meeting was held recently on 16th January, 2017 for the ninth time, second time in 2017, for deciding upon the unresolved issues, mainly about the cross empowerment and territorial jurisdiction of states. This meeting was considered significant for timing of GST as the last attempt to reconcile and make the states agree, if the Union Government was still eyeing at 1st April, 2017 for GST introduction. However, the GSTC did decided the issues before it but also deferred GST schedule by a quarter to 1st July, 2017.
States wanted that they should control the entire assessee base including service tax assessees below the threshold limit of ₹ 1.5 crore whereas Centre was of the view that the States lack expertise and knowledge in service tax. While this may be true in the present scenario, training can always be imparted and no such beginni

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enges. GSTC also agreed to states being allowed to have control over territorial waters. Though general consensus is being looked at, States like West Bengal and Kerala still continue to be in opposite camp.
The Centre and States have agreed to share the entire taxation base for assessment with a horizontal division. According to the agreed formula, which will apply for both goods producers and service providers, States will have the power to assess 90 per cent of all assessees with a GST turnover of ₹ 1.5 crore or less and the remainder will be with the Centre. Further, assessees with a GST turnover of over ₹ 1.5 crore will be assessed in a 50:50 ratio by the Centre and States. Intelligence-based enforcement powers will vest with assessing officers of both the Centre and States for all assessees.
Both have agreed that no assessee would be controlled by two authorities and there would be computer-based enforcement at both the Centre and the states. Those assessees who fal

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able w.e.f. 1st July, 2017, i.e., in 2017-18 fiscal, for quarter-I, we will have present tax regime and for remaining three quarters, we will be having GST in place. Even if it is delayed beyond July 2017, the transition may not be an issue as it is a transaction tax. July may be a reality, hopefully so.
GST Council is also understood to be working on tax rate structure for services. This could be in 2-3 slabs for basic, standard and luxury / high end services. If this is through, we will end up in having too many GST rates which may not be desirable. It is expected that finalizing of segment wise GST rates will take some more time.
On industry front, as the date comes nearer, there are going to be major challenges which inter alia include cash flow management, working capital, logistics, IT solutions, inventory planning and so on. Planning on all these fronts is subject to final law, rules, rates and credit / refund rules.
With Union Budget 2017-18 now scheduled to be presented in

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Definition of Principal place of business, Proper Officer and Services
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 24-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
Definition of Principal place of business, Proper Officer and Services
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
2(77) Principal place of business: the new definition reads as follows:
Principal place of business means the place of business specified as the principal place of business in the certificate of registration;
The old definition read as follows:
“principal place of

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every registered premise would have to be classified as principal place of business inviting litigation. Deleting the condition of keeping books of accounts has made the definition simple to follow and now the assessee can name any of his premises as principal place of business. But there is no need to keep books of accounts there only. It can be kept at any place of business.
2(79) Proper Officer: the new definition reads as follows:
Proper Officer in relation to any function to be performed under this Act, means the officer of goods and services tax who is assigned that function by the Commissioner of CGST / SGST;
The old definition reads as follows:
“proper officer” in relation to any function to be performed under this Act, means th

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but does not include money and securities;
Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.
The old definition read as follows:
“services'' means anything other than goods; Explanation: Services include intangible property and actionable claim but does not include money.
The amendment bought in the definition is that Securities explicitly excluded from services definition. We have told in our earlier update that securities are excluded from the definition of "goods" under Section 2(49)

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GEMS & JEWELLERY INDUSTRY UNDER GST REGIME (PART-2)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 23-1-2017

Place of Registration
In the present indirect tax regime, there is a concept of Centralized registration under Central tax laws.
Under GST regime, registration may be required in each State from where supplies are being made. Hence, manufacture/dealer may need to obtain registration in each State where there is a premises (including site office) from where services are being provided. Centralized registration will no longer be available.
Returns
Under existing indirect tax laws, assessee has to submit 2 half yearly returns under Service Tax, monthly /quarterly return under Central Excise and quarterly returns under VAT laws in a year. Model GST Act provides following returns which are required to be submitted by the registered person :
S.no.
Return
Periodic return to be filed for
To Be Filed By
1.
GSTR-1
Outward supplies made by taxpaye

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bsequent month. This provision places the liability for non-compliance on the recipients, i.e., the companies, as against their vendors.
Similar provisions have been prescribed wherein details of credit notes issued by a supplier have to match with the corresponding reduction of input tax credit claimed by the recipient. Accordingly, if the recipient does not adjust the input tax credit, the tax and interest would be recovered from the supplier. This provision places liability on companies for non-compliance by vendors.
Rate of GST
While rates of GST on are likely to be in the range of 5-28 percent, what rate of GST shall be applicable to gems and jewellery is not yet decided. The lowest rate as per slabs agreed upon in GST Council is 5 percent. However, lower rate is not ruled out. The industry is demanding for a tax slab of 1-2 percent.
Payment
Any tax, interest, penalty, fee, etc., shall be paid via internet banking or by using credit/debit cards or NEFT or RTGS. This amount s

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has been liberally defined for being eligible to claim input tax credit in respect of capital goods. “Capital goods” means goods, the value of which is capitalized in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business. Accordingly, input tax credit will be eligible for capital goods only on those goods, the value of which is capitalized in the books of accounts. This will enable many taxable persons to claim cenvat credit.
A taxable person (exporter) may claim refund of any unutilized input tax credit at the end of any tax period. In other words, exporter of services shall be eligible to get refund on eligible inputs, capital goods and input services.
Input Service Distributor Concept (ISD)
As in the present Cenvat Credit Rules, ISD concept is proposed for transfer of credit of input services between two or more locations. ISD can transfer credit of all types of GST (CSGT, SGST or IGST). Consid

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Transitional Challenges in GST implementation
By: – Ravi Kumar Somani
Goods and Services Tax – GST
Dated:- 23-1-2017

India is committed to implement Goods and Service Tax (GST). GST is expected to be implemented from April 2017 or a little later. The tax system is currently in the drafting stages with a few undecided issues holding up the agreement between the states and the Centre. The implementation of GST does not just involve tax reform, it is instead a complete business reform. Therefore, changing the historical ways of doing business calls for larger challenges and increased sense of responsibility as any slip up can also have the business continuity/ survival risks. This article discusses the various transitional aspects that needs to be looked into and the challenges that the businesses face in doing the same. Various transitional challenges are as under:
Finalising the GST Transition Model:
The first and foremost challenge in the implementation of the GST is

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model, GST is implemented with collaborated efforts of internal team and the outside professionals clearly dividing the roles and responsibilities of internal team and the external experts. This is more appropriate model for major of the companies who have fairly decent capacities in respect of the executing manpower and knowledge of the taxation system. The capacity and the knowledge can be optimally utilized by partnering with the professionals.
Credits Transit, Maximization, documentation, Methodology:
Various transitional provisions has been prescribed to deal with transfer of credits in the GST regime. However, transition of credits is going to be a big challenge in the GST regime especially for the following businesses:
* Where credits in books are not reconciled with returns over a period of time;
* Book stocks never match with the physical stocks. There is no regular stock taking exercise being conducted;
* Tax invoices received from vendors not being properly documen

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transition. Therefore, proper care must be taken while availing/ transferring the credits ensuring due compliance of the law. Whether to avail the credit of disputed items could be a vital decision which would require legal confirmation considering the latest case laws as also the time limit of 1 year of the invoice. Further, businesses must have proper documentation, trails in place to establish the claim of the credit at a later date during departmental audits.
Business Model Re-structuring:
All businesses will undergo a change due to advent of GST. However, the businesses who act and restructure its model as per the requirement of the GST will have a competitive edge over others. Various re-structuring aspects that can be looked into are as under:
* Whether to change the manufacturing location, principle place of business;
* Adding locations of supply being closer to customers/ vendors – Making national presence – No state barriers for supply;
* Shutting down locations, war

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s under:
* Strategizing the stock transfers to avoid working capital blockage;
* Breaking a composite supply into multiple different supplies – For Ex: Combos with aerated drinks in restaurants, Cinema halls;
* Merging multiple supplies into a composite supply – For Ex: Vaastu, High Rise Premium to be merged with construction;
* Determining whether a transaction to be restructured as a Composite supply or as a Mixed supply;
* Clear breaking up the Price to optimize taxes;
* Revisiting the Discounts policy – Nature of discount, Cash discount or trade discount, whether linked to invoice or not;
* Security Deposits in lieu of advances to ease cash flows;
* Reviewing pricing of all related party vendors to avoid disputes in transaction value – Able to establish arms length;
* Doing away with the policy of raising Mother Purchase Order's with supplies over a period of time.
This is just an illustrative list, there can be many more aspects to transactional restructuring, t

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can be intimated to the department for records purpose.
What if certain transitional aspects are practically difficult to implement:
There can be certain transitional aspects which would be more complex in a practical scenario and there may not be only one view of the same. For instance: Determining the quantum of availing credits based on stock or determining the right pricing for goods/ services in the GST regime considering the anti-profiteering measures. In such cases, businesses shall face challenge in selecting the right approach. Further, the approach adopted may easily be contradicted by the department. Therefore, in such scenarios businesses must have proper documents, evidences in place and if possible get the same duly certified by the competent authorities to establish its claim.
Updation of various GST laws for each state in a quick short time and complying with the procedural aspects of each state:
In embracing a change it becomes crucial for businesses and professio

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sses to quantify the benefit and determine the commensurate reduction in pricing that would be required to off-set the benefit. This shall be very complex aspect that the businesses are going to face. The consequences of the same will be faced at the time of departmental audits in the GST regime. Therefore, due care needs to be taken under the guidance of the professionals while dealing with such loosely drafted provisions in the law without clear guidance.
Filing of the last return in the current tax regime:
Filing of the last return in the current tax regime is like a last chance to make good the old issues and start afresh. Based on the impact assessment, complete sanctity check for the last 1 year must be done and the same must be given effect to in the last returns. Missed credits, doubtful credits, credits reversed to buy peace etc. can now be availed in the last return with proper intimation to the department. Transactions overlapping between the two regimes must be clearly un

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Constant communication with the vendors/ customers and their support is very crucial in smooth transition. Carrying along the un-organized vendors into the GST regime is a risky affair. Many aspects of the GST regime such as matching concept, compliances etc. will be perturb the business in GST regime if the vendors are not organized. Therefore, the challenging task of the vendor evaluation/ assessment and their preparedness for the GST must be assessed well in advance during the transitional phase so that the loose link the chain is not carried along to the GST regime. Vendors who understand can pass on the benefit and ensure that the intermediate supplier is not out of pocket when the customer reduces the prices.
Nature and extent upto which ERP system must be tweaked:
Needs of the businesses from ERP shall undergo a change in the GST regime, but the crucial decision making factor is to understand the nature and extent of the tweaking to the ERP that is required to be done to atle

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g its impact could be a risky proportion. Further, impact assessment helps in channelizing the transitional efforts in the right areas. Various aspects that needs to be considered in the process of impact analysis are as under:
* Understand self business first – As-is mapping of the business transactions
* Perform minimum past one year sanity check
* Credit Maximization, Review of present credits & compliance
* Performing various ratio analysis to understand the business and its GST impact
* Assess detailed impact on business as a whole, business transactions and impact on various business departments.
* Proactively mitigate the risks of the negative impact. Enhance the positive impact.
* Implementation not restricted to Finance & Accounts department. Readiness and learning equally required by procurement, production, stores, Sales & Marketing, IT, Admin & HR departments also.
Businesses acting early on the GST impact to have edge over competitors.
Conclusion:
Business

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Kalyan Tourist Home Versus State of Kerala
GST
2017 (1) TMI 1716 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 23-1-2017
S.T. Rev. No. 33 of 2014
GST
T.B. Radhakrishnan And Devan Ramachandran, JJ.
For the Appellant : Thomas Abraham and K.P. Pradeep
For the Respondent : Mohammed Rafiq, Sr. Government Pleader
ORDER
T.B. Radhakrishnan, J.
1. These revisions are by an assessee who is eligible to pay tax at compounded rate under S. 7 of the Kerala General Sales Tax Act, 1963, 'Act', for short. It is also not in dispute that the assessee is one who has a bar attached hotel of and below two star. This means that if he opts under S. 7 for payment of tax at compounded rate, he would be governed by S. 7(1)(i), which provision has two Clauses – (a) and (b), which operate in alternative. Clause (a) or (b) would apply depending upon which would bring home to the Revenue through the compounded scheme, higher revenue as tax. The assessee applied for payme

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ything depends upon the turnover or the total amount that would be generated as revenue through the taxes from the assessee for the relevant period to decide as to whether it is Clause (a) or (b) of S. 7(1)(i) that would apply. Decisions of the Hon'ble Supreme Court of India in Bhima Jewellery (M/s.) v. Asstt. Commissioner (Assessment), Kerala & Anr. (2014 (71) VST 110 (SC) : 2014 KHC 5346), Raju Jacob v. Sales Tax Officer (2006 (1) KLT 788 : 2006 KHC 246), Koothattukulam Liquors v. Deputy Commissioner of Sales Tax (2015) 12 SCC 794) and Annie George, Proprietrix v. The State of Kerala (2007 (1) KLT SN 4 (C. No. 6) : 2006 KHC 1701) do not go away from the principle that we have stated herein to that effect. While Koothattukulam Liquors (supra) dealt with a case of payment of tax at compounded rate on the basis of excise duty component, other decisions, particularly Bhima Jewellery (supra), deal with the quality of the contract of compounding and specifically state that compounding

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that rate of tax and the question whether the assessee would be able to opt as between Clauses (a) and (b) of S. 7(1)(i), is also within the bargain on which the compounding is accepted. So much so, the stand of the Revenue that the assessee/revision petitioner had to pay the particular amounts demanded by the assessing authority under S. 7 does not stand.
2. Be that as it may, we have also considered yet another submission. The plea of the assessee through its learned counsel is that the assessee had voluntarily made an option and the assessing authority had accepted tax from him. He, therefore, tries to build up a plea somewhere in the realm of what could be thought of, too remotely, as exchequer. We notice this to say that the crucial further argument is that the Accountant General's office had made an audit of the office, and in the course of the audit, the Accountant General's squad had pointed out that the assessee had not paid the entire amounts due under S. 7(1) of th

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gement of the State. In the course of such exercise, it is well within its fiscal management of the State Government and also through the controlling and regulatory power of the Accountant General's office to point out the statutory officers concerned, the deficit in payment of taxes. What has been done in the case in hand is that when the Accountant General's audit squad had pointed out the deficiency and deficit in the payment of taxes payable under S. 7(1) by the assessee, a notice was issued by the assessing authority calling upon the assessee to pay the balance amount. After such notice, a reply was delivered by the assessee. That was considered and thereafter, an order was issued apparently under S. 7. Calling it as an assessment order or a notice demanding payment, in law and in fiscal jurisprudence, it makes no difference because all that has been asked for is requiring the payment of amounts which are due to be paid merely by operation of law and not on the basis of an

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the assessing authority has accepted the option, and therefore, could not have done so without making a concession against any claim for further amounts. We state this argument only to be rejected because there is no question of any misrepresentation of any nature, since the payment of tax consequent on an option exercised by the assessee does not depend upon any representation of the assessing authority or any other statutory authority under the Act. What we say now is in tandem with what we have already said as to the automatic flow of the consequences of option. Further, there is no question of the assessee opting either for a particular rate of tax or for opting as between Clauses (a) and (b) of S. 7(1)(i) of the Act adverse to the interest of the Revenue. For the aforesaid reasons, we are of the view that the Tribunal cannot be criticised of having failed to decide or having left undecided any question of law which arises for decision in these cases. These revisions fail.
In the

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Place of Supply and registration
Query (Issue) Started By: – Chandrashekhar Kandpal Dated:- 21-1-2017 Last Reply Date:- 23-1-2017 Goods and Services Tax – GST
Got 3 Replies
GST
We are in the business of publication of magazines and organising international trade exhibitions. I will be grateful if you could advise us on the following with respect to GST implications:
We publish the magazines in Maharashtra and the Advertisers are from all over the world. We send the copy of the magazine along with the invoice to the client. As per place of supply of services, the service provided to a registered person shall be the location of such person. Here I presume registered person means the recipient registered in the state from where t

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) IGST or (b) SGST & CGST.
Question 2. If we organise an Exhibition in other state where we have branch office. Do we need to take registration in that state? if yes, will it be a regular registration or Causal Taxable person.
Question 3 .If we organise an Exhibition in other state where we do not have branch office – Do we need to take registration as Casual Taxable Person or regular registration?
Further, In case of Casual Taxable person, the estimated liability is required to be paid in advance and the registration is valid for 90 days only, which can be extended with the approval.
Normally an Exhibition is planned more than a year in advance and its very difficult to ascertain the liability in such advance period, moreover we start

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GEMS & JEWELLERY INDUSTRY UNDER GST REGIME (PART-1)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 21-1-2017

Prologue
The Gems and Jewellery sector play a significant role in the Indian economy, contributing to over 5 % of the country's GDP. As one of the fastest growing sectors, it is highly export- oriented and labour intensive.
Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as one of the focus area for export promotion. India is considered to be the hub of the global jewellery market because of its low costs and availability of high-skilled labour. The industry generated US$ 38.6 billion of revenue from exports in 2015-16, making it the second largest exporter after petro-chemicals. (Source: www.ibef.org)
Currently, gems and jewellery sector is exposed to various indirect taxes, viz. Excise Duty, Service Tax and VAT/Sales Tax. The current indirect tax regime in India provide

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on value without Cenvat credit on inputs and capital goods. (However, credit on input services is eligible), or
* 12.5% with Cenvat credit of inputs, input services, and capital goods.
VAT is levied at the rate of 1% or different rates (may vary from State to State) for sale in India.
Under the model GST law, lowest approved GST rate is proposed to be 5%. If gems and jewellery item will be classified under the lowest tax slab, then this will become a major concern for this sector paying excise duty @1%. As a result they may have to pay CGST/SGST @5% instead of what they are paying in existing taxation laws, i.e., 2% (1+1). This shall increase the prices of gems and jewellery. However, this will be subject to availing Cenvat Credit of tax paid on inputs.
For assessees who are paying excise duty @12.5%, if gems and jewellery is taxed @5%, then this will be a relief for them. However, classification of goods and/ or services is still pending for taxability of GST rate. Therefore, mor

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ased on the value of clearance) is presently available if the value of manufactured goods (on own or through job worker) cleared domestically has not crossed ₹ 1.5 crores. (all goods manufactured including silver jewellery).
Under GST regime, the threshold limit of ₹ 10/20 lakhs is provided for payment of GST. Since, under GST regime limit of threshold exemption will be reduced to ₹ 10/20 lakhs, it will adversely affect the manufacturers.
Shift in Taxable base from Service/Manufacturing/Sale to Supply
In service tax law, rendering of service is a taxable event for levy of Service Tax. Similarly, in the case of central excise, manufacturing is a taxable event for levy of central excise duty and sale is a taxable event under VAT laws for levy of VAT/Sales Tax. However, in GST regime, 'Supply' will be considered as a taxable event under GST.
Supply shall include:
* all forms of supply of goods and/or services made or agreed to be made for a consideration by a per

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he importation of services from a related person or any of his distinct establishment outside India without consideration, then such supply would also be covered under supply.
Time of Supply of Goods and/or Services
CGST/SGST/IGST shall be payable at the earliest of the following dates, namely:
* the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the supply; or
* the date on which the supplier receives the payment with respect to the supply.
Valuation
Transaction value shall be considered for payment of tax, with various inclusions prescribed in the valuation provisions/ rules.
Certain inclusions in the valuation are as follows:
* Any taxes, duties, cesses, fees and charges levied under any statute (like Basic Custom Duty and Anti-dumping Duty), other than SGST /CGST/IGST.
* Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supp

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Definition of Input Service Distributor and Money
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 21-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
Definition of Input Service Distributor and Money
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
2(54) Input Service Distributor: The new definition reads as follows:
Input service distributor means an office of the supplier of goods and/or services which receives tax invoices issued under section 28 towards receipt of input services and issues a prescribed document for the purposes of distributing th

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ice will be applicable on the ISD as well. This would mean that not only the ISD had to file returns prescribed for supplier of services; he would have to also comply with the provisions meant for supplier of services. Thus the explanation has been deleted to avoid such interpretation by the department.
2(68) Money: the new definition reads as follows:
Money means Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveler cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not inclu

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Supply and Place of Supply of Goods and Services in IGST Law
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 20-1-2017

Supply is wider term used in GST law as the GST is based on Supply only. Now the question arises what is supply. Supply is transfer of goods and services on which GST will be imposed. Supply has been mainly defined in Section 3 of GST law subject to Schedule- I to IV. Supply has been further elaborated in IGST law whether the supply is interstate supply or Intra-State supply. This is important because if the supply is Intra- State,then CGST and SGST will be attracted otherwise if the supplly is Inter State then IGST will be levied. To understand whether the transaction is Inter State or Intra-State or Import or Export, it is important to understand the provision of Place of Supply which has been narrated in Section- 3 to 4 and 7 to 10 of the IGST Law.
Supply has been defined in Section 2[26] of IGST Law as follows;
“Supply” shall have the

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of goods brought into India in the course of import till they cross the custom frontier of India.
* Intra State supply of services means any supply of services where the location of supplier and place of supply is in the same State but does not include supply to or by SEZ Developer or SEZ unit.
Place of Supply of Goods other than import and export [ Section-7 ]
Situation
Place of Supply
1.Movement of goods by supplier or recipient.
Where the movement of goods terminate for delivery to recipient.
2. where the goods are delivered to recipient or any person on the direction of third person by way of transfer of title or otherwise, it shall be deemed that third person has received the goods
shall be principal place of business of such person
3. where there is no movement of goods either by supplier or recipient
Location of such goods at the time of delivery to recipient
4. where goods are assembled or installed at site
Shall be where the goods are assembled or installed
5

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engineers, estate agent, grant of right to use immovable property for carrying out or co-ordination of construction work
b] lodging accommodation by hotel, inn, guest house, home stay, club or campsite, house boat or other vessel
c] accommodation in immovable property for marriage or reception or matter related therewith , official, social , cultural , religious or business function including service for such functions.
d] ancillary to above services in a, b and c
Location of Immovable property, boat or vessel
If immovable property, boat or vessel is located outside India then location of the recipient.
If the services are provided in more than one State, proportion of service provided in each State.
4. restaurant and catering service, personal grooming , fitness, beauty treatment, health services including cosmetic and plastic surgery
Where the services are actually performed
5. training and performance appraisal
Location of registered person.
Location where the service are

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Return journey shall be treated as separate journey
10. services on board a conveyance such as vessel, aircraft, train or motor vehicle
First schedule departure point of the conveyance
11.telecommunication including data transfer, broadcasting, cable and DTH television services
a] fixed line, leased circuit , internet lease circuit, cable or dish antenna-
b] Mobile connection for telecommunication, internet on post paid basis-
c] Mobile connection for telecommunication, internet and DTH on prepaid basis-
i] through selling agent or reseller or distributor of SIM or recharge voucher
ii] by any person to the final subscriber
d] any other case other than b and c above
Where it is installed
Billing Address
Address of seller , reseller or distributor as per the record of supplier
Where prepayment is received or voucher is sold
Address of recipient as per the record of supplier
Where the address of the recipient is not known , location of supplier.
If prepaid service or rec

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rvices to the supplier of services
Where services are provided from remote location by way of electronic means
b] service supplied to individual , represented either as recipient of service or person acting on behalf of recipient which required the physical presence of receiver.
Location where the services are performed.
Location where the Goods are situated.
This clause shall not apply in services supplied in respect of goods temporarily imported in to India and are exported after repair.
Location where the service are performed
3. services in relation to immovable property including services in this regard by expert and estate agent, supply of hotel accommodation by hotel, inn, guest house, home stay, club or campsite, grant of right to use immovable property, services for carrying out or coordination of construction work, including Architect or interior decorator.
Location of Immovable property.
4. admission to or organizing of a cultural, artistic, sporting ,scientific, e

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ircraft, train or motor vehicle
First schedule departure point of the conveyance
11.a] service of ” online information and Database access or retrieval ”
b] for the purpose of this sub section, person receiving such services shall be deemed to be located in taxable territory, if following two condition are being satisfy
i]location of address presented by the recipient via internet
ii] payment settle by recipient by any card has been issued in taxable territory
iii]billing address of recipient of service is in taxable territory
iv] internet address protocol of the device used by recipient is in taxable territory
v] the bank of recipient of service is in taxable territory
vi] country code of SIM used by recipient of service is in taxable territory
vii]location of the fixed land line use by recipient is in taxable territory
Location of recipient of services
Disclaimer :
The contents of this article are solely for information and knowledge and does not constitute any profes

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e service is provided. And supply of service made to any other person other than registered person shall be
* The location of the recipient where the address on record exist and
* The location of the supplier of services in other cases.
Question 1. If the advertiser is located in other state and not registered in Maharashtra which tax will be applicable (a) IGST or (b) SGST & CGST
2. We organise exhibitions in different states. Currently we have centralised registration of Services tax having principle place of business in Mumbai.
Question 1. If the Exhibition is organised in Mumbai where we will be registered under GST, Exhibitors participating from other states which are not registered in Maharashtra, which Tax will be applicable (a) IGST or (b) SGST & CGST.
2.If we organise an Exhibition in other state where we have branch office. Do we need to take registration in that state?
3. If we organise an Exhibition in other state where we do not have branch office – Do we need t

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'Bill to – Ship to' Model – IGST Act – Version 2 dated 25 November 2016
By: – Ramnarayan Balakrishnan
Goods and Services Tax – GST
Dated:- 20-1-2017

Chapter IV, Section 7(3) of the draft IGST Act reads as below (verbatim):
"Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person."
While the First Leg of the Transaction is reasonably clear, the

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Act, is located in the same state as the supplier but issues instructions for delivery of the goods on inter-state basis (which ideally should trigger IGST), then, regardless of the actual movement of goods, his location would be deemed to be the place of supply and result in triggering of CGST + SGST.
The aspects discussed above are only in relation to the first leg of the transaction, i.e. between the Supplier of goods and the 'third person', whether located within or outside the state.
B. The Second Leg of the Transaction
The next point to reckon with would be the nature of the second leg of the transaction, i.e. between the 'third person' and the ultimate customer who receives the goods.
Whether a transaction triggers IGST or CGST+

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n. At the time of effecting the second leg of the sale transaction,
* The goods might have reached the ultimate customer. In which case, the place of supply would be the destination of the ultimate customer.
* Going back to Section 7(3), in this transaction of 'bill to – ship to', it is deemed that the 'third person' is the recipient of the goods, even though the actual recipient is the ultimate customer. This concept could further complicate the process of determining the actual place of supply.
Correspondingly, there would be implications from the input credit perspective also.
Thoughts on the above are most welcome.
Reply By Somil Bhansali as =
Sir as per my interpretation the Second leg of Transaction will be as per Section 7(

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GST COUNCIL
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 20-1-2017

Section 12 of the Constitution (One hundred and first Amendment) Act, 2016 proposes to insert a new Article 279A after Article 279 which deals with Goods and Service Tax Council. Section 12 came into force with effect from 12.09.2016, vide Notification No. S.O. No. 2915(E), dated 10.09.2016.
Constitution of GST council
Article 279A (1) provides that the President shall, within 60 days from the date of the commencement of the Act, by order, constitute a Council to be called the Goods and Services Tax Council. Article 279A(2) provides that the GST council shall consist of the following members-
* Union Finance Minister – Chairperson;
* The Union Minister of State in charge of Revenue or Finance- Member;
* The Minister in charge of Finance or Taxation or any other Minister nominated by each State Government – Members.
The members shall, as soon as may be, choose one amongst

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expenses of the GST Council Secretariat, the entire cost for which shall be borne by the Central Government. The GST Council Secretariat shall be manned by officers taken on deputation from both the Central and State Governments.
Vide Notification No.SO 2957(E), dated 15.09.2016 the President of India constituted the GST Council containing the above members in the council.
The GST Council is headed by Union Finance Minister Arun Jaitley and includes representatives of all the 29 states and 2 union territories.
Functions of GST Council
Article 279A (4) provides that GST council shall make recommendations to the Union and the States on-
* the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be submitted in the goods and services tax;
* the goods and services that may be subject to, or exempted from the goods and services tax;
* model Goods and Services Tax Laws, principal of levy, apportionment of Goods and Services Tax levied on appli

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ance of its functions.
Proceedings of Council
Every decision of the Council shall be taken at a meeting by a majority of not less than three fourths of the weighted votes of the members present and voting in accordance with the following principles-
* the vote of the Central Government shall have a weightage of one third of the total votes cast; and
* the votes of all the State Governments taken together shall have a weightage of two thirds of the total votes cast in that meeting.
50% of the total number of Members of the Council shall constitute the quorum of the meeting.
No act or proceedings of the Council shall be invalid merely by reason of-
* any vacancy in, or in any defect in, the constitution of the Council; or
* any defect in the appointment of a person as a Member of the Council; or
* any procedural irregularity of the Council not affecting the merits of the case.
Adjudication of dispute
The Council shall establish a mechanism to adjudicate any dispute-
* b

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of the council. As a result, minutes of meeting held on September 23 were not approved by the council in its meeting. Five rules framed for the purpose of GST have been taken up and approved by the Council.
Third GST council meeting
The GST Council, in the meeting held on 03.11.2016 finalized the GST tax rate structure. The Council has opted for a four tier rate structure of 5%, 12%, 18% and 28%. The essential items like food grains will have a zero rate. According to the decision, 150 essential items in the consumer price index basket will attract zero tax.
5% tax – For mass consumption goods like butter, ghee;
12% tax – It is one of the standard rate;
18% tax – It is another standard rate;
28% tax – Luxury goods will attract this tax;
0% tax – 50% of Consumer Price Index basket items, food grains like rice and wheat, spices
The above tax rate must be approved by the Parliament in the Winter Session which is going to be held on 19.11.2016 but not able to get approved. A commi

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the issue of assessee jurisdiction continued. The Council is also yet to approve the drafts of supporting legislations such as the Central GST and State GST, Integrated GST, and a law detailing compensation to states for loss of revenue in the first five years of the roll-out.
Sixth meeting of GST council
The 6th meeting was conducted in the shadow of demonetization, whose fallout has put a serious question mark on implementing GST by 01.04.2017, the target fixed by the Central Government. This two day meet focused on finalizing three legislations viz., Central GST, State GST and compensation bill but the same has not been achieved except up to Sections 99 of Model GST law have been discussed
Seventh meeting of GST council
Primary draft of CGST and SGST bills were cleared;
Redrafting of one clause in the draft compensation bill. Compensation is to be paid to States on a bi-monthly basis instead of on quarterly basis as in the draft bill.
Eighth meeting of GST Council
he deadlo

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9th GST Council inks breakthrough on dual control over tax payers, rollout deferred to July 1, 2017
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 19-1-2017

Dear Professional Colleague,
9th GST Council inks breakthrough on dual control over tax payers, rollout deferred to July 1, 2017
In an attempt to try and bridge differences on the contentious issues such as administrative control over taxpayers under the Goods and Services Tax (“GST”), the all-powerful GST Council headed by the Hon'ble Finance Minister, Mr. Arun Jaitley met for the ninth time in a row to clear all gathered clouds over the GST and brightening its prospects of implementation soon.
With the conclusion of the 9th GST Council meet on January 16, 20

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assess and administer 90% of the tax payers with less than ₹ 1.5 crore annual turnover while the remaining would be controlled by the Centre.
* For tax payers with more than ₹ 1.5 crore annual turnover, the States and the Centre will control and administer them in a 50:50 ratio.
However, intelligence based enforcement power will be with both the Centre and States.
Further, the Hon'ble Finance Minister said that each assessee would be assessed only by one authority. He also said that "You won't have to jump from authority to authority, that's the advantage of GST ……… Once you evolve numerically a lot more will come from state to the centre, because the percentage is 50:50 in higher category and 90:10 in lo

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, the States will also be cross empowered:
The Centre, while iterating that the power to levy and collect the Integrated Goods and Services Tax (“IGST”) will be vested with it solely, agreed to make a special provision in law by which the States will also be cross empowered.
* Contentious issues between the conflicting States to be taken up by the Centre
The Hon'ble Finance Minister said that in exercise of IGST, where there are contentious issues between conflicting States with regard to place of supply etc., then those assessment would take place by the Centre.
As the discussions made in the 9th GST Council meet would have an impact on the IGST Law, Compensation Law and correspondingly, on the Central Goods and Services Tax/State Goo

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Registration of Service Tax under GST
Query (Issue) Started By: – Partha Sarkar Dated:- 18-1-2017 Last Reply Date:- 23-1-2017 Goods and Services Tax – GST
Got 6 Replies
GST
We have a manufactured unit I Odisha sometimes we have to delivered service (other than supply) in different states. Please guide me the registration of service tax to be taken for different sates where service to be delivered.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
The service tax is subsumed into GST. Therefore there is no separate registration for service tax. If the service provided is made more than one State you have to get registration for each State. If you are already registered with the Department you have to migrate to GST. Otherwise you ha

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GST – DEFINITION OF AGRICULTURE
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 18-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
DEFINITION OF AGRICULTURE:
As the GST law has been revised, it is pertinent to note down what all issues still remain un-tackled or untouched. Also certain provisions are there which are yet again drafted in such a way that they would attract litigation. Here we are discussing two such provisions:
* Starting with the definition of agriculture, its scope has been restricted largely in the GST regime. The proposed definition is reproduced here below:
2(7) “agriculture" with all its grammatical variations and cognate expressions, includes floriculture, horticulture, sericulture

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RONSNALLY.
The definition is further given under Section 2(106) about cultivate land personally which is as under:-
(106) “to cultivate personally” means to carry on any agricultural operation on one's own account- (a) by one's own labour, or (b) by the labour of one's family, or (c) by servants on wages payable in cash or kind [(but not in crop share)] or by hired labour under one's personal supervision or the personal supervision of any member of one's family;
Explanation 1. – A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour. Explanation

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very prone to litigation is the definition of Composite Supply appearing in Section 2(27), Mixed Supplies in Section 2(66) and Principle supply in 2(78). The definitions are reproduced here below for ready reference:
“composite supply” means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
www.capradeepjain.com
Reply By Ganeshan Kalyani as =
Nice article.
Dated: 18-1-2017
Reply By KASTURI SETHI as =
Excellent article, Sir. All doubts cleared. The new definition of 'Agriculture' under GST specifically

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GST — Migration of existing Central Excise and Service Tax assessee to GST
TRADE NOTICE No. 16/2016 Dated:- 18-1-2017 Trade Notice
GST
OFFICE OF THE COMMISSIONER OF CUSTOMS, CENTRAL EXCISE & SERVICE TAX
HYDERABAD-IV COMMISSIONERATE
POSNETT BHAVAN : TILAK ROAD : RAMKOTE : HYDERABAD-500001
C. No. V/08/01/2016-Tech
Date: 18.01.2017
TRADE NOTICE No. 16/2016
Sub: GST – Migration of existing Central Excise and Service Tax assessee to GST – regarding.
Attention of the members of trade, industry and all concerned is invited to the subject matter mentioned above.
2. As per Section 166 of draft CGST Act read with relevant rule, every central excise / service tax assessee having a valid PAN shall be granted registration under GST regime on a provisional basis. For such assessees, GSTN shall generate provisional IDs and communicate same to the assessees through CBEC for migration to the GST regime. The director general of Systems, CBEC has made necessary arrangements for comm

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ainment Tax), you may have already initiated this process of migration and no further action suggested below would be applicable to you.
A schematic representation of the migration process is given below:
In order to migrate to GST, you need to have a provisional ID and password. These details you can obtain by logging into ACES portal (www.aces.gov.in). These details are being obtained from GSTN and you may periodically log in to see your status.
You are required to use the provisional ID and password to log into GSTN portal (www.gst.gov.in) to fill up the required details and upload the supporting documents. After you provide the requisite details, an ARN (Application Reference Number) would be communicated to you by GSTN. Once you have the ARN, you would migrate to GST on the scheduled GST roll out date with issue of Provisional Certificate.
Please note: In case your Central Excise or Service Tax registration does not have a valid Income Tax PAN number, you need to obtain the

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8
Service Tax Division-I
G. Samraj Kumar
Superintendent
040-24760797
Service Tax Division-Il
C. Devamani
Superintendent
040-24764572
You can also send mail at cbecmitra.helpdesk@icegate.gov.in.
(A.R.S. KUMAR)
COMMISSIONER
=============
Document 1
CBEC identifies required information for
each Assessee
GSTN generates ARN number. Assessee
status marked as 'MIGRATED to be marked
ACTIVE on appolated day
Information is sent
to GSTN
GSTN generates
Provisional ID.
GSTN sends
details to CBEC
Assessee submits the GST REG 20
CBEC will make available the
Provisional ID and Password in a
secured manner on ACES portal
Assessee sees the details
and logs in to GSTN portal
Following non-editable filled will
be shown to Assessee:
• Legal Name of Business (As per
PAN)
•Legal Name of Business (As per
current Act)
•PAN
• State
Provisionalio
certificate issued to
Assessee
Online Verification
Assessee data sent to Tax
Authority for v

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Process of Migration of Central Excise and Service Tax assessees to GST regime
Public Notice No. 01/2017 Dated:- 18-1-2017 Trade Notice
GST
OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX
7th FLOOR, TRADE CENTRE, BUNTS HOSTEL ROAD, MANGALURU-575 003
C. No. IV/16/01/2017/Tech.
Date: 18.01.2017
Public Notice No. 01/2017
Sub: – Process of Migration of Central Excise and Service Tax assessees to GST regime- Reg.
As per Section 166 of the draft CGST Act read with Rule 14 of the draft GST Registration Rules, every Central Excise / Service Tax assessee having valid PAN shall be granted registration under GST regime on a provisional basis.
2. To simplify the process of migration, step wise procedures have been prescrib

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01.2017
NODAL OFFICERS OF MANGALURU COMMISSIONERATE
SI
Division Name / Location
No
Name of Officer
(Ms. / Mr.)
Designation
Phone No.
Email
i
!!!
Central Excise Division I,
Attavar
ii Central Excise Division II,
iv
V
Attavar
Service Tax Division,
Punja Building
Central Excise & Service
Tax Udupi Division, Udupi
Central Excise & Service
Tax Headquarters
K Nirmala
G Govindan
Potti
Superintendent
(0824) 2427218
accxmngdn1@nic.in
Ashonik
Inspector
(0824) 2427218
PT Rai
Superintendent
(0824) 2421779
accxmngdn2@nic.in
Shobha Peres Bhatt Superintendent
(0824) 2454669
accxmngdnst@nic.in
Rajesh Pawar
Ashish Verma
Superintendent
Inspector
Superintendent
(0820) 2528123
accxmngudp@nic.in
(0820) 2528123
(08

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Centre, states reach consensus on GST; rollout from July 1
GST
Dated:- 17-1-2017

New Delhi, Jan 16 (PTI) In a significant breakthrough in implementation of India's biggest tax reform, the deadlock over administration of GST ended on Monday after the Centre agreed to allow states control over most of small taxpayers, but the rollout date was pushed back by 3 months to July 1.
The split of GST taxpayers between the two will be done horizontally with states getting to administer and control 90 per cent of the asseesses below INR 1.5 crore annual turnover, and the remaining 10 per cent coming under the Centre.
The Centre and states will share control of assessees with annual turnover of over INR 1.5 crore in 50:50 ratio even

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T or IGST, the tax which will be levied by the Centre on inter-state movement of goods and services, as well as SGST and CGST will be finalised in the next meeting of the GST Council on February 18.
Once approved, the Council will then decide on taxing various goods and services in different tax slabs, he said.
The stalemate over administration of GST had been holding up consensus in the GST Council since early November with four successive meetings failing to break the deadlock as the Centre was not in favour of a horizontal split. It said states did not have the expertise to administer levies like service tax.
The Centre also did not favour dual agencies auditing and scrutinising each taxpayer as multiple authorities could end up actin

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Returns under Revised GST Model Law-At a Glance:
By: – Ashish Mittal
Goods and Services Tax – GST
Dated:- 17-1-2017

Background:
“Submission of details of transaction that the business was indulged in for a given period, in prescribed manner can be termed as Return” Every law when comes into force, defines some periodic statement called return to control and assess the transaction the organization has entered into. In context of GST, CBEC in collaboration with GST council has notified draft Model GST model Law (in short “MGL”) as revised on 25th November 2016 wherein vide CHAPTER -VIII, twelve Sections has been issued in this regards for compliance along with separate set of rules under the MGL for various classes of assesse and types of returns.
Applicability
The different class of assesse who would be liable for various different returns along with applicable rule and relevant form has been summarized in the infra mentioned table (Reference to Section-32, 33, 34, 39

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* General Part: For all Assessee on whom following two returns are applicable (as per Supra mentioned table)
* Rule 1 Return for Outward Supply:
Original Form-FORM GSTR-1
Steps:
* First the form will be filled by supplier by 10th of the next month
* Later this form will be available to recipients in Part A of FORM GSTR-2A for verifying their details.
* Details updated by the recipient in his FORM GSTR-2 U/s 33 or FORM GSTR-4 U/s 34 shall be made available to supplier in FORM GSTR-1A and
* Supplier may accept or reject the amendment in full
or part and accordingly FORM GSTR-1 of supplier shall stand amended.
Rule 2 Return for Inward Supply:
Original Form-FORM GSTR-2
*
a. It shall be prepared by using information of Part A,B,C,D of FORM GSTR-2A regarding details furnished by
In part A-Outward Supplier
In part B-ISD regarding ITC
In part C-Regarding deduction U/s 37
In part D-By E-Commerce Operator U/s 43C
b. Also details regarding
1. ITC availabl

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th or 7 days after expiring of registration whichever is earlier.
Rule-6 for Input Service Distributor (ISD)
Original Form-FORM GSTR-6
Modification in FORM GSTR-6A
Rule-7 for Person required to deduct tax at source under Section 46 of MGL
Original Form-FORM GSTR-7
Certificate of Deduction provided to deductee in FORM GSTR-7A
* Rule-8 for Supplies effected through e-Commerce
Original Form-FORM GSTR-8
Verification of Certain Documents shall be conducted in accordance with Rule-20 and 21 similar procedure as defined in ITC related points.
Frequency Various Returns:
Different returns need to be filled at different frequency which also varies assessee-wise which has been summarized below in tabular manner:
S.NO.
Who is Liable to file return?
When i.e. at what frequency return need to be filled?
Return for Outward Supplies (Section 32 read with Rule-1 )
Return for Inward Supplies (Section 33 read with Rule-2 )
Monthly Return (Section 34 read with Rule-3 )
Annual Return

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d to deduct
tax at source under Section 46 of MGL
Not Applicable
Not Applicable
Monthly by 10th of Succeeding month of relevant tax period
Not Applicable
6
Supplies effected
through e-Commerce
Monthly by 10th of Succeeding month of relevant tax period
Monthly by 15th of Succeeding month of relevant tax period
Monthly by 20th of Succeeding month of relevant tax period
Annually by 31th of December of subsequent F.Y.
Special Point:
Person Liable for Audit under 53(4) shall submit audit report and return and reconciliation statements
General/Common Provisions:
Some Provisions which are common in nature has been herewith stated in Question and answer form for the sake of simplicity
Certain General/Common Provision in Question and answer Form
Certain General Questions
Answers based on Relevant Provisions as mentioned in MGL
What content need to be filled in
Detail of Outward Supply?
Details of outward supplies” shall include U/s 32
* zero-rated supplies,
* int

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No Such Power Vested in Monthly Return of Sec. 34
How it should be filled
Mandatorily all return to be filled Electronically on GST portal.
Whether Revised Return can be filled if yes how?
Condition for Revision
1. Original Return Cannot be Revised
2. But the discovery of any error or omission therein can be corrected in monthly return U/s 34 of the tax period in which the default was detected
3. But before Earlier of [Sept. monthly return u/s 34 of next F.Y or Annual return of F.Y] i.e. Correction possible max. till subsequent F.Y. Sept return or Annual return of relevant F.Y.
Certain Condition for Monthly Return
Condition for Monthly Return U/s 34
1. All dues of Tax must be paid before or on due date of filling respective returns
2. If no supply then also NIL return Mandatory
3. If tax not paid then return Invalid for allowing ITC
Concept of First Return U/s 35
1. Registered Person to file return U/s 32, 33 till end of the month in which registration is granted to

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ecipient
(c) Invoice/Debit Note date
(d) Invoice/Debit Note number
(e) Taxable value
(f) Tax amount
Note: If ITC claimed by recipient is equal to or less than tax shown by supplier then it is deemed to be matched
4. The final acceptance and rejection shall be communicated to both parties in FORM GST ITC-1. (Sec. 37 & 38)
3. Certain communication of discrepancy in details and credit note to both parties are
a. Mismatch of tax shall be communicated in FORM GST ITC-1
b. Non-submission of Invoice by supplier would disallow the ITC of recipient in FORM GST ITC-1
c. Duplication of ITC would be disallowed and communicated in FORM GST ITC-1
d. The difference in tax becomes output liability of recipient with interest subject to reduction when correction is done along with refund (shall be granted in electronic cash ledger in FORM GST PMT-3 of interest earlier paid for setoff in future liability) (Sec. 37 & 38)
Note:
1. Rectification by a supplieradding or correcting outward supply

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AGGREGATE TURNOVER UNDER REVISED GST LAW
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 17-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
AGGREGATE TURNOVER UNDER REVISED GST LAW:-
As we have discussed in earlier GST updates that registration under GST regime is required only if the turnover of the assessee crosses the threshold limit of Rs twenty lacs. Today in this update we shall analyse the definition of “aggregate turnover” and changes brought in by Revised GST Draft Law.
The definition of aggregate turnover under revised GST Draft Law is under section 2(6) which states that the aggregate turnover shall include all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supp

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ught in this definition are:-
* The removal of 'non taxable supplies' from the definition. Under old GST law, this was also included in the definition. It was thought to be a welcoming change on government's behalf as already the threshold limit given is too less and then including non taxable supplies along with exempted supplies further narrows the threshold limit. But the definition of "exempt supply" is given under Section 2(44) of revised GST Act which reads as follows:-
“exempt supply” means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11 ;
Hence the delight was short

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n this provision in old GST law came then everyone was of the view that assessee has to pay the GST even for single transaction of interstate supply. After registration, he has to pay the tax on each supply. This interpretation came from the concept of voluntary registration.
But inclusion of interstate supply in definition of "aggregate turnover" together with registration requirement with schedule V leads to two interpretations viz:-
a. The single transaction interstate supply will be liable to tax and registration is to be taken for the same. But exemption of ₹ 20 lakh will be separately allowed for intra state supply. But the turnover of interstate supply will also be covered under "aggregate turnover".
b

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GST latest update
GST
Dated:- 16-1-2017

GST council is now reaching towards consensus on most issues including Dual Control and power to levy GST on transaction made within the Territori

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GST Council Near Consensus on Dual Control & Territorial Waters Taxation; Implementation Expected on July 1, 2017.
News
GST
GST council is now reaching towards consensus on most issues includ

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Jaitley looks to break deadlock at GST meeting today
GST
Dated:- 16-1-2017

New Delhi, (PTI) Finance Minister Arun Jaitley will today look to break the deadlock over distribution of powers between centre and states to administer GST, an issue that is holding up launch of the new national sales tax from April.
The all-powerful GST Council, headed by Jaitley, will meet for the ninth time today with the issue of who gets to administer the Goods and Services Tax (GST) being the single biggest issue on agenda.
The council has been deadlocked in the last four meetings, the last one being on January 4, with states seeking sole powers to control assessee with annual turnover of up to ₹ 1.5 crore.
Centre, however, is not in fav

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e created for compensating states for loss of revenue from GST rollout may figure in today's meeting, sources said.
The council had in previous meeting agreed on most of the clauses of the draft IGST law, which along with Central-GST (CGST) and State-GST (SGST) have to be passed by the Parliament and state legislatives respectively before the new tax regime can be rolled out.
Interated-GST or IGST deals with levy on inter-state supply (including stock transfers) of goods or services.
GST will subsume a host of indirect taxes levied by the centre and the states, including excise duty, value-added tax, service tax, entry tax, luxury tax and entertainment tax.
The Parliament passed the landmark constitutional amendment in August last y

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Definition of Business
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 16-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
Continuing with the analysis of the revised GST law, we shall today discuss changes bought in the definitions as provided in the law:
1. 2(17) Business: the new definition reads as follows:
“Business includes –
(a) Any trade, commerce, manufacture, profession, vocation or any other similar activity, whether or not it is for a pecuniary benefit;
(b) Any activity or transaction in connection with or incidental or ancillary to (a) above;
(c) Any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) Su

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n given in revised GST law is compared with old definition given in model GST law, it can be noted that a new explanation is added in the clause aiming to cover any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities in the definition of business. This has been added to make it amply clear that the functions and activities undertaken by the government as public authorities shall be treated as business activities. Treating them as business has a large impact to the extent GST is considered. Not only the definition of supply but the cenvat credit provisions, all mandate that the activities undertaken by the taxable person should be in the cours

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n the schedule IV, all other activities shall be termed as business transactions and will be covered under GST.
Even in the present system of service tax also, there is reverse charge mechanism on all services provided by Government except the services mentioned in schedule IV. This implies that the same system will continue in the proposed GST also and it might be possible that the reverse charge will be applicable on the same.
Moreover, we have seen that there is controversy of service tax liability on club and association. On the basis of principal of mutuality, it was held that club and its members are one and same person and hence the service tax is not applicable on the same. It was held by Bihar High Court in case of Ranchi club an

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Minutes of the 9th GST Council Meeting held on 16 January 2017
9th CST Council Meeting Dated:- 16-1-2017 GST Council – Minutes
GST
Minutes of the 9th GST Council Meeting held on 16 January 2017
The ninth meeting of the GST Council (hereinafter referred to as 'the Council') was held on 16 January 2017 in Vigyan Bhavan, New Delhi under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon'ble Members of the Council who attended the meeting is at Annexure 1. The list of officers of the Centre, the States, the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2. The officials from the Ministries of Power and Renewable Energy of the Government of India and the trade representatives who made presentations before the Council is at Annexure 3.
2. The following agenda items were listed for discussion in the ninth meeting of the Council-
1. Brief presentation by representative

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entatives of the Power Sector to make a brief presentation on the impact of GST on Power Sector.
4.1 Shri Pradeep Kumar Pujari, Secretary, Ministry of Power, in his introductory remarks, stated that implementation of GST would have an impact on the cost of generation, transmission and distribution of power. He observed that impact on thermal and hydel power plants would be different because coal was a major input for thermal power plants. He stated that any change in the tariff of power would have a big impact on the economy. He further stated that power tariff was approved by the regulator. He explained that there were broadly two regimes for determining power tariff, namely the cost-plus regime and the competitive bid regime. He explained that in the cost-plus regime, the cost of inputs was passed on to the consumers and in the competitive bid regime, the bidder took into account the cost of the inputs while making the bid for power tariff. He also explained that there was a very la

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, Ministry of Power made a presentation giving different input tax rate scenarios under GST for the power sector and its impact on the price of power per unit for both coal-based and hydro power plants. For coal-based power plants, he stated that if electricity was kept out of the GST net, but inputs for generating electricity were taxed at the rate of 18%, the net impact could be an increase in price per unit from Rs. 6.99 to Rs. 7.10. He suggested alternative options for plants in operation and for new plants. He explained that if electricity was kept under GST in the zero rated category, the cost per unit would be reduced to Rs. 6.53 from the present Rs. 6.99. He stated that if this scenario was not possible due to revenue implication and if electricity was kept out of the GST net, the cost per unit of power for plants in operation would be Rs. 7.01 if coal was taxed at the rate of 12% and other inputs were taxed at the rate of 18%. He added that this cost could come down to Rs. 6.9

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e same GST rate was kept for inputs for coal based and hydro power plants. He suggested that the hydro power plants should be treated as part of the renewable energy sector where presently duty regime was considerably lower as compared to coal and hydel power plants. He stated that around 11,000 megawatt hydro power capacity was expected to be added in the next five years and most of the projects were situated in the North-East or in the Special Category States. He suggested that supplies made to under-construction power projects should be granted the status of deemed export as was being contemplated for solar power projects. He observed that this would involve a relatively small tax short fall ofRs. 880 crore spread over a period of five years. He pointed out that any tariff increase on power due to GST would have a multiplier effect on economic development and would adversely impact industrial production, GDP growth, make in India campaign and export competitiveness ofIndian products

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out that they had also given alternate proposals. The Hon'ble Chairperson enquired whether it would be desirable to maintain the present rate of taxation for the power sector and to this the Secretary, Ministry of Power responded that this could work for the thermal power sector but not for the hydro power sector. He also pointed out that electricity sector was different from the sectors like transport, civil aviation, etc. as this was consumed by the poorer sections of the society and the aim of the Government has been to electrify every home. The Secretary, Renewable Energy observed that permitting zero rating for this sector would not have any impact as presently they were not charged to any taxes. The Hon'ble Minister from Tamil Nadu observed that tax rate should be revenue neutral. He also wondered whether increase of tariff was due to tax rate on services going up to 18% for EPC (Engineering Procurement and Construction) contracts. He also observed that this could be addr

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d to replace the version of the Hon'ble Minister as per the suggestion made.
5.2. The Hon'ble Minister from Karnataka stated that the decision recorded in paragraph 24(ii) in relation to Section 10(2) of the Draft GST Compensation Law implied that the Council would sit and decide the mode of raising additional resources only when amount in the GST Compensation Fund fell short. He observed that this would not be a practical approach and suggested that, instead, the Council could give a standing authorisation to the Government of India to raise additional resources when the amount in the GST Compensation Fund fell short. The Secretary to the Council (hereinafter referred to as 'the Secretary') suggested to also add the expression 'is likely to fall short' in the fourth line. The Council agreed to the suggestion of the Secretary.
6. In view of the above discussions, for Agenda item 2, the Council decided to adopt the Minutes of the 8th meeting of the Council with

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iscussed first such as the 13 changes to the Model GST Law proposed by the Law Committee and circulated as an agenda note under agenda item 7 for the 8th GST Council meeting held on 3 and 4 January 2017, the provisions of Appellate Tribunal and the fitment of various commodities into the tax slabs. He suggested that the subject of cross-empowerment might be taken up after discussing and deciding the above issues. The Hon'ble Chairperson stated that the issues relating to the Model GST Law could be taken up later and that in this meeting, the Council should try to resolve the thorny issue of cross-empowerment. He invited the Chairman, Central Board of Excise and Customs (CBEC) to give his views on this subject. He further stated that along with the Members, officers could also contribute in the discussion to follow.
8. The Chairman, CBEC observed that cross-empowerment in the context of Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) was envisaged to f

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. 1.5 crore could be entrusted to the States and that the Centre could only have a small presence in this taxpayer segment. He stated that for taxpayers with turnover above Rs. 1.5 crore, Centre could carry out a greater percentage of scrutiny. He suggested that the taxpayers could be given a choice to go to either of the two administrations and that a taxpayer could choose to go to the State administration for activities relating to registration, post registration, etc. On IGST, he emphasised that there was a Constitutional challenge to entrust its administration to the State tax authorities, but in order to help build a consensus, he presented two options by which the Central government could cross-empower the State tax authorities under the IGST Act. He stated that the first option could be to empower State tax administrations for all processes like scrutiny, demand, audit, etc. but they should refer the case to the Central tax administration wherever a need for adjudication arose s

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ication on place of supply issues, he suggested that this should apply only where there was a dispute between two States. The Chairman CBEC suggested that carve out for the Central tax administration should be for all place of supply issues including where a third State was aggrieved or where there was a valuation challenge for an inter-State supply.
10. The Hon'ble Chief Minister of Puducherry stated that earlier, several permutations and combinations had been discussed on this issue including a proposal of vertical division. He added that an entirely new concept had been introduced by the Chairman, CBEC and requested that it should be tabled in writing. The Hon'ble Minister from Karnataka observed that the proposal appeared rational and worthy of consideration but requested more details in terms of numbers. He also added that the Chairman, CBEC had introduced a few caveats which needed to be deliberated upon in greater detail.
11. The Secretary amplified the proposal made b

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e done by each. He stated, as an example, that more complicated service tax assessees could be taken up for audit by the Central tax administration. He stated that other than audit, servicing of taxpayers in other areas like change in registration particulars, etc. could be done by the State tax administration if the taxpayer was comfortable with them and this could also include taxpayers from the services sector. He stated that on cross-empowerment under the IGST Act, out of the two options proposed by the Chairman, CBEC, the better option would be that the States could do adjudication relating to issues arising out of inter-State supply except for place of supply issues as such disputes would affect the interest of two States.
12. The Hon'ble Deputy Chief Minister of Gujarat suggested to first arrive at the ratio for division and the rest could follow. He stated that as the theme of GST was 'one tax-one nation', the theme of GST administration should be 'one business

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the auditable sample should be 5% each for taxpayers below and above Rs. 1.5 crore turnover. He also agreed that neither the Central Government nor the State Government should be ousted from any jurisdiction. He stated that 42 lakh taxpayers with turnover above Rs. 1.5 crore should be divided in the proportion of the staff strength of each administration. He also supported the proposal of the Chairman; CBEC that the other functions in relation to taxpayers below the turnover of Rs. 1.5 crore should be handled by the State tax administration. The Hon'ble Minister from Assam welcomed the proposal of the Chairman, CBEC to empower the State tax authorities under the IGST Act. The Hon'ble Minister from Telangana also observed that the suggestion of the Chairman, CBEC was a good one and it could be a basis to resolve this issue. Ms. Mona Khandhar, Secretary (Economic Affairs), Gujarat suggested to divide the taxpayers vertically.
13. During the lunch break, the Secretary discussed t

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if freedom was left to the taxpayer to choose one of the two administrations, he might choose the one who would favour him. The CCT, Assam also expressed the apprehension that a taxpayer might not choose any tax administration or choose one who could collude with him. The ACS and CCT, Tamil Nadu stated that a large number of functions needed to be carried out in the field and the taxpayers needed handholding by the tax administration. The CCT, Uttar Pradesh supported dividing the taxpayer base. The CCT, Gujarat observed that for a successful implementation of GST, responsibilities to tax administrations should be assigned clearly and, if this was not done, there would be lack of accountability. He supported a vertical division. The CCT, Bihar supported the suggestion of Chairman, GSTN that a tax payer should report to the same authority to whom he was reporting presently and a tax payer who had an overlap between two tax administrations, could be given a choice to be assigned to one o

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t of inter-State supplies of goods and services except in the following situation: (i) where issue related to changing the declared nature of supply from intra-State to inter-State or vice versa or led to change in the destination of supply from one State to another; (ii) consumption of supply was required to be apportioned between various States; (iii) valuation of inter-State supplies between related parties; (iv) the consuming State advise that the case be adjudicated by the Centre; (v) all import and export related functions.
15. The Secretary summed up the deliberations during the lunch break meeting with the officers and informed the Council that the overwhelming view of the States was to have a division of tax-payers for administrative purposes between the Central and the State tax administrations. He further informed that two options emerged in this regard: the first was that the present Value Added Tax (V A T) dealers could report to the State tax administration and the servi

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ated by the CBEC had five caveats. He expressed that the notion of taking geographically stratified sample was problematic. He further pointed out that CBEC's proposal appeared to be more in the nature of loud thinking as it was contingent upon the Ministry of Law being able to find a viable legal solution. The Hon'ble Chairperson stated that CBEC had taken a strict legal view that IGST could only be levied and collected by the Central tax administration and apportioned to the States. He pointed out that there was another view that under Article 258 of the Constitution, the Hon'ble President of India, with the consent of the Hon'ble Governor of the State, could entrust the function of the Central administration to the State administration. The Hon'ble Minister from Karnataka stated that another alternative was to delegate the entire task of administration to the States as was done under the Central Sales Tax(CST) Act under Article 269 of the Constitution. Dr. C. Cha

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nce with the statement of the Chairman, CBEC. He stated that in his view, IGST could not work without cross-empowerment to the State tax authorities and that it was not a correct way of discussion to state that the legal department would need to find a solution for cross-empowerment. He suggested that in order to avoid dual interface for tax payers, there should be a cut off of Rs. 1.5 crore turnover and audit of a certain percent of 'tax payer falling below this threshold could be done by the Central tax administration but otherwise, the control of the taxpayers in this segment should rest with the States. He added that taxpayers above the turnover of Rs. 1.5 crore should be divided equally between the Central and the State tax administrations. He stated that the overall percentage of sharing should be 75% for the States and 25% for the Centre and that small taxpayers should remain with the State administration except for a small number to be audited by the Central tax administrat

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.5 crore should be divided equally between the two administrations. He further stated that there should be cross-empowerment under the IGST Act. Shri Alok Shukla, Joint Secretary TRU, CBEC stated that like States had concern regarding ensuring correctness of assessment of IGST and wanted powers under the IGST Act, the Central administration must also have a say on the collection of CGST for tax payers with turn over below Rs. 1.5 crore. He added that the Centre's jurisdiction for enforcement, audit and scrutiny of returns should not be completely ousted in respect of taxpayers below Rs. 1.5 crore turnover segment but the other functions could be carried out by the States. He also suggested that for tax payers below Rs. 1.5 crore turnover, Centre's intervention could be limited to 1% within the overall cap of 5%. The Hon'ble Minister from Tamil Nadu observed that this construct was not workable as one was talking of two universe of tax payers – one with turnover below Rs. 1.

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nversely went below this threshold. The Hon'ble Minister from Maharashtra also supported a vertical division in the ratio of two-third for the States and one-third for the Centre and suggested that computer could do this division. The Hon'ble Minister from Kerala stated that all taxpayers below the turnover of Rs. 1.5 crore should be exclusively under the control of the State tax administrations. Shri Manish Kumar Sinha, Commissioner GST Council suggested that whatever model was adopted, the risk prone taxpayers for audit should be drawn from the entire taxpayer base.
19. The Hon'ble Chairperson, summing up the discussion laid out a few broad guidelines for a possible decision on the subject. He stated that out of the entire universe of the taxpayer base, draw a line of division for taxpayers below and above the turnover of Rs. 1.5 crore. For taxpayers below the turnover of Rs. 1.5 crore, States could do the entire administration. He added that scrutiny and audit could be

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te tax administration was closer to small dealers in the administrative reach and he agreed that the Centre could have a small space for auditing taxpayers falling below the turnover limit of Rs. 1.5 crore and that this sample could be drawn from the entire taxpayer base below Rs. 1.5 crore turnover. The Hon'ble Minister from Maharashtra reiterated his preference for a vertical division with two-third share going to the States from the entire value chain and suggested that a variation of this principle might be allowed for those States who wanted to have exclusive control of taxpayers below Rs. 1.5 crore turnover. He added that the two-third share of such States could be calculated after adjusting the total number of taxpayers below Rs. 1.5 crore turnover in their share. He observed that his proposal would help in expanding the tax base of the States and would obviate the need to expand their tax collection overhead. The Hon'ble Deputy Chief Minister of Gujarat supported this p

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heir jurisdiction. He further stated that such an arrangement should not be made as a part of the law; rather it could be operated through a resolution which could be changed later. He stated that the Council could also permit a State to move from one model to another. Shri Tuhin Kanta Pandey, Principal Secretary (Finance), Odisha stated that there should be no diffused accountability except for enforcement and that a fixed proportion of dealers should be assigned to the Central and the State tax administrations. He added that option may also be made available to any State if it wishes to be allocated 100% taxpayers below the turnover of Rs. 1.5 crore subject to the overall share/proportion of dealers allocated to a State. The Hon'ble Minister from West Bengal stated that for division of taxpayers in the segment of above Rs. 1.5 crore turnover, a standardized model should be followed. The Hon'ble Minister from Kerala emphasised that the Central Government could not handle the s

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go to the Centre (Gujarat's suggestion); (ii) for taxpayers below Rs. 1.5 crore, the administrative control should vest with the States and only 10% of units to be audited by the Central tax administration (Tamil Nadu's proposal); (iii) administration of taxpayers below Rs. 1.5 crore turnover to rest with the States and those above Rs. 1.5 crore to be divided between the Centre and States; (iv) States could have flexibility to negotiate the numbers with the Central tax administration; (v) Intelligence based action could be taken by both tax administrations without any division; (vi) Scrutiny and audit to be part of the division; (vii) IGST to be cross-empowered either under law or under Article 258 of the Constitution with a carve out for the Central tax administration in relation to place of supply issues; (viii) Territorial waters within the twelve nautical miles of the coastline to remain a territory of the Union of India unless the Supreme Court decided otherwise in the on

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l formula of two-third and one-third division between State and the Centre, it could also be considered whether the base of the Service Tax payers could be left with the Central tax administration. The Hon'ble Minister from Assam observed that the States might need to create more posts at State level if administration of all Service Tax assessees below the turnover of Rs. 1.5 crore was entrusted to the States. The Hon'ble Minister from West Bengal suggested that both the Central and the State tax administrations could completely give up audit of taxpayers below Rs. l.5 crore turnover and that the other aspects of administration should be left with the States alone.
24. The Secretary informed that in the officers' discussion during the lunch break, all State Governments expressed a preference of a vertical division of the taxpayers. He stated that there were approximately 26 lakh taxpayers between the turnover of Rs. 20 lakh to Rs. 1.5 crore, and if 20% was given to the Cen

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ere should be a particular percent of division of taxpayers below Rs. 1.5 crore turnover and another percent for taxpayers above Rs. 1.5 crore. He further stated that no carve out should be allowed in relation to cross-empowerment under lGST. The Hon'ble Chairperson stated that the only grey area left was in relation to division of taxpayers below Rs. 1.5 crore threshold where the Centre proposed a 20% share and the Hon'ble Minister from Tamil Nadu had suggested a 10% share. He further observed that there was not much substantial difference between the two proposed percentages of 20 and 10.
25. The Hon'ble Minister from Tamil Nadu sought clarification that the proposed division was only in respect of audit and that all other administrative powers was to vest with the States. The Secretary clarified that there was a need for a vertical division for administrative purposes and that the proposed division of taxpayers was 20% for the Centre and 80% for States in respect of tax

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he States. He stated that Tamil Nadu's position was very close to the option of 100% and 0%. He added that the proposal made by the Hon'ble Minister of Tamil Nadu was not acceptable to his State and he sought a flexibility for West Bengal that 100% of its taxpayers below Rs. 1.5 crore turnover would remain with the State. The Hon'ble Chairperson stated that broadly, the concern of the States was that the Central tax administration should not scrutinise the books of account of small taxpayers in the goods sector and one solution to this concern could be that the 20% taxpayers allocated to the Centre should only be from the Service Tax assessee base. The Hon'ble Minister from Assam strongly supported this proposal. The Hon'ble Minister from West Bengal reminded that there was a unanimous decision of the Empowered Committee of State Finance Ministers on this subject and it needed to be respected. The Hon'ble Minister from Haryana stated that the decision of the Emp

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d an issue whether goods would include 'deemed' goods and whether these would remain with the States. The Secretary observed that the 'deemed' goods were mostly considered as services and that the Centre would have to get a share of such Service Tax assessees. The Hon'ble Minister from West Bengal stated that restaurant was in the category of deemed goods and it should remain in the jurisdiction of States. The Hon'ble Minister from Tamil Nadu suggested not to divide the taxpayer base on the basis of service category and suggested that the division should be based on the available resources with the Centre and the State tax administrations. The Hon'ble Minister from West Bengal again suggested that there could be no audit of taxpayers below Rs. 1.5 crore but the Hon'ble Minister from Tamil Nadu observed that audit was an important function and it should not be dispensed with.
27. The Hon'ble Minister from Maharashtra suggested that the existing taxpa

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and on this issue, no sense of the House had emerged as yet. The Hon'ble Chairperson observed that the Council had avoided voting till now and it must continue to work on the principle of consensus and develop a healthy convention in this regard. The Hon'ble Minister from Tamil Nadu stated that he had changed his position and now supported a vertical division with two-third of taxpayers going to the States and one-third to the Centre. The Hon'ble Chairperson stated that in order to reach consensus, he offered that of the taxpayers below Rs. 1.5 crore turnover, 90% should be allocated to the States and 10% to the Centre. He invited the Hon'ble Minister from West Bengal to join the emerging consensus on the basis of this revised proposal. However, the Hon'ble Minister from West Bengal stated that he was unable to join the consensus as he was still of the view that the entire taxpayer base below the turnover of Rs. 1.5 crore should fully remain in the administrative j

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lly agreed;
v. The new registrants shall be initially divided one each between the Central and the State tax administration and at the end of the year, once the turnover of such new registrants was ascertained, those units with turnover below Rs. 1.5 crore shall be divided in the ratio of 90% for the State tax administration and 10% for the Central tax administration and those units above the turnover of Rs. 1.5 crore shall be divided in the ratio of 50% each for the State and the Central tax administration;
vi. The division of the taxpayers may be switched between the Centre and the States at such interval as may be decided by the Council;
vii. The above arrangement shall be reviewed by the Council from time to time;
viii. Both the Central and the State tax administrations shall have the power to take intelligence-based enforcement action in respect of the entire value chain;
ix. Powers under the IGST Act shall be cross-empowered to the State tax administration on the same b

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agenda item 3.
Agenda Item 5: Date of the next meeting of the GST Council
30. Before discussing the next date of the meeting, the Council briefly discussed the date Of implementation of GST. The Hon'ble Minister from Maharashtra suggested that GST should be implemented from l” April, 2017. The Hon'ble Minister from Assam stated that it was not desirable to change the tax regime in the middle of the financial year and suggested that it should be implemented from 1st April, 2017. The Hon'ble Minister from Kerala stated that the decision could not be rushed to implement GST from 1st April, 2017 and that it could also be implemented from July or August, 2017. The Hon'ble Minister from Bihar expressed his preference for introducing GST from 1st April, 2017 but if it was not possible, he stated that it must be implemented from I” July, 2017. The Hon'ble Minister from Karnataka suggested that there must be a time schedule for each task for timely roll out of GST. The Hon

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the status of fitment exercise for rates of tax was not known. The Hon'ble Minister from West Bengal stated that adequate time was needed for rate of taxes to be put into the ERP (Enterprise Resource Planning) of the taxpayers. The Hon'ble Minister from Tamil Nadu stated that 1 st July, 2017 appeared a more practical date for implementation of GST. The Hon'ble Minister from Kamataka also concurred with this observation. The Principal Secretary (Revenue), Telangana stated that an effort could be made to implement GST by 1st April, 2017 and if it was not feasible, it should be implemented from I” July, 2017. The Hon'ble Chairperson observed that the officers dealing with law would also need to work on the rates under GST which could spill into March, 2017 and in this view the deadline of 1 st April, 2017 could be a major challenge. After further discussion the Council unanimously agreed to extend the date of GST rollout to 1st July, 2017.
31. After discussion, the Counci

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ure
Finance Minister
12
Maharashtra
Shri Sudhir Mungantiwar
Finance Minister
13
Mizoram
Shri Lalsawta
14
Rajasthan
Shri Rajpal Singh Shekhawat
15
Tamil Nadu
Shri K. Pandiarajan
16
Telangana
Shri Etela Rajender
Finance Minister
Minister for Industries
Minister, School Education,
Sports & Youth Welfare
Finance Minister
17
West Bengal
Dr. Amit Mitra
Finance Minister
Page 17 of 23
CHAIRMAN'S
INITIALS
CHAIRMAN'S
INITIALS
MINUTE BOOK
Annexure 2
List of Officers who attended the 9th GST Council Meeting on 16 January 2017
S No
State/Centre
Name of the Officer
Charge
1
Govt. of India
Dr. Hasmukh Adhia
2 Govt. of India
Shri Najib Shah
3
Govt. of India
Shri Arvind Subramanian
4 Govt. of India
Shri Ram Tirath
5
Govt. of India
Shri Mahender Singh
Secretary, GST Council & Department of
Revenue
Permanent Invitee to GST Council &
Chairman, CBEC
Chief Economic Adviser
Member (GST), CBEC
Director General, DG-GST
6
Govt. of India
Shri P.K. Jain

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Govt. of India
Shri S.P. Bhatia
22
GST Council
Shri Arun Goyal
23 GST Council
Shri Shashank Priya
Assistant Commissioner (GST), CBEC
Assistant Director, Press, MoF
Additional PS to FM
Additional Secretary
Commissioner
Page 18 of 23
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S No
State/Centre
Name of the Officer
Charge
24
GST Council
Shri Manish K Sinha
Commissioner
25 GST Council
Shri G.S. Sinha
26 GST Council
Ms. Thari Sitkil
27
GST Council
Shri Rakesh Agarwal
Joint Commissioner
Deputy Commissioner
Assistant Commissioner
28 GST Council
Shri Kaushik TG
29
GST Council
Shri Sandeep Bhutani
Assistant Commissioner
Superintendent
30
GST Council
Shri Shekhar Khansili
Superintendent
31
GST Council
Shri Manoj Kumar
Superintendent
32
GST Council
Shri Amit Soni
Inspector
33
GST Council
Shri Alok Bharti
Inspector
34
GST Council
Shri Anis Alam
Inspector
35
GST Council
Shri Ashish Tomar
Inspector
36 GST Council
Shri Sharad Kumar Verma
PA to Commissione

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hri Khemraj Jhariya
51
Delhi
Shri H. Rajesh Prasad
52 Delhi
Shri Anand Kumar Tiwari
53 Goa
54 Gujarat
Shri Dipak Bandekar
Dr. P.D. Vaghela
55 Gujarat
Ms. Mona Khandhar
56 Haryana
57 Haryana
58 Haryana
59 Haryana
60 Himachal Pradesh
Shri Sanjeev Kaushal
Shri Shyamal Misra
Shri Vidya Sagar
Shri Rajeev Chaudhary
Shri Pushpendra Rajput
Shri K.L. Negi
61
Himachal Pradesh
62
Jammu & Kashmir
Shr P.I. Khateeb
63 Jammu & Kashmir
Shri P.K. Bhat
Shri Sushant Kumar
Mukherjee
Charge
Additional Commissioner, Commercial
Taxes
Commissioner, VAT
Joint Commissioner, GST
Commissioner, Commercial Taxes
Commissioner, Commercial Taxes
Secretary (Economic Affairs)
Additional Chief Secretary
Commissioner, Excise & Taxation
Joint Commissioner, Excise & Taxation
Deputy Commissioner, Excise & Taxation
Commissioner, Excise & Taxation
OSD to Excise & Taxation Minister
Commissioner, Commercial Taxes
Additional Commissioner, Commercial
Taxes
64 Jharkhand
65 Jharkhand

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ga
79
Mizoram
Shri R. Zosiamliana
80 Nagaland
Shri Asangba Chuba Ao
81
Odisha
Shri Tuhin Kanta Pandey
82
Odisha
Shri Saswat Mishra
83
Odisha
Shri Sahadev Sahu
84 Puducherry
Dr. V. Candavelou
85 Puducherry
86 Punjab
87 Punjab
Shri Rajeev Gupta
88 Punjab
Shri Varun Roojam
89 Punjab
Shri Kumar Saurabh
90 Sikkim
91 Rajasthan
92 Rajasthan
93 Rajasthan
94 Tamil Nadu
Dr. C. Chandramouli
95 Tamil Nadu
96 Telangana
97 Telangana
98 Telangana
Shri Laxminarayan Jannu
99 Uttarakhand
Shri Manoj Rai
Shri Praveen Gupta
Shri Alok Gupta
Shri Ketan Sharma
Shri K. Gnanasekaran
Shri Somesh Kumar
Shri Anil Kumar
Charge
Parliamentary Secretary, Taxation
OSD to Government of Mizoram
Joint Commissioner, Taxes
Deputy Commissioner, Taxes
Commissioner, Taxes
Principal Secretary (Finance)
Commissioner, Commercial Taxes
Joint Commissioner, Commercial Taxes
Secretary (Finance)
Commissioner, Commercial Taxes
Additional Chief Secretary
Advisor (GST), Govt of Punj

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i Mahapatra
106 West Bengal
Shri Khalid A Anwar
107 GSTN
Shri Navin Kumar
Chairman
108
GSTN
Shri Prakash Kumar
CEO
Page 22 of 23
Commissioner, Commercial Taxes
Senior Joint Commissioner, Commercial
Tax
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Annexure 3
List of Representatives from the Power Sector who attended the 9th GST Council Meeting on
16 January 2017
S No
Sector/Ministry
Name
Designation
1 Ministry of Power
Shri Pradeep Kumar Pujari
Secretary
2 Ministry of Power
Shri Raj Pal
Economic Adviser
3 Ministry of Power
Shri Somit Das Gupta
4
Power Sector
Shri K.P. Gupta
Member (E&C), CEA
Executive Director,
NTPC
5
Power Sector
Shri Atul Gupta
Consultant (GST)
6
Power Sector
Shri Ajay Kapoor
CEO, Tata Power
Ministry of New & Renewable
7 Energy
Shri Rajeev Kapoor
Ministry of New & Renewable
8 Energy
Shri Santosh Vaidya
Secretary
Joint Secretary
Ministry of New & Renewable
9 Energy
Shri Ruchin Gupta
Deputy Secretary
Page 23 of 23
CHAIRMAN'S
INITIAL

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Article on: Registration under Revised GST Model
By: – Ashish Mittal
Goods and Services Tax – GST
Dated:- 14-1-2017

Background:
Every time a law comes into force the Assessee falling under its ambit has to get them registered in said law and comply with the relevant provisions. CBEC in association with empowered GST council has notified draft Model GST model Law (in short “MGL”) as revised on 25th November 2016, rules and schedules issued in this regards wherein vide CHAPTER – VI, a set of five Sections (in short “Sec.”) read with separate rules issued in this regards for compliance and a schedule defining person liable to be registered wide Schedule-V of the MGL for classifying the fate of certain classes of Assessee.
Applicability
The applicability of registration under MGL on various classes of Assessee along with turnover limit (in short T/o) can be explained in a summarized form in the following table (Reference to Sec. 23 read with Schedule-V have been made her

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h the Supra mentioned limits
Within 30 days of when liable to get registered i.e. 30 days from appointed date
3
In case of Succession of Businessthe successor of business need to get fresh registration.
No Limit is Applicable as it is transfer of existing business
Within 30 days of transfer or succession
4
In case of amalgamation or demergerthe resultant Assessee
No Limit is Applicable as it is transfer of running business
Within 30 days of issue of Certificate of Incorporation
5
Interstate supplier
No T/o Limit
Within 30 days of indulging in such activity under MGL.
6
Casual taxable person
No T/o Limit
At least five days prior to the commencement of business
7
Non-Resident Taxable person
8
Person liable under Reverse Charge Mechanism (in Short “RCM”)
No T/o Limit
Within 30 days of indulging in such activity under MGL.
9
Deductor specified under Sec. 46 of MGL or Collector of Tax under Sec. 56 (irrespective of fact of separate registration)
10
Agent of a taxa

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t in general rule.
A: General Rule: (Reference of Section 23 read with rule 1, 2, and 3 of Registration rule have been made herewith)
1. Other than Non-Resident, Deductor under sec. 46 or collector under Sec. 56, fill Part A of FORM GST REG-01 particulars such as email, PAN, Mobile No. which would be verified.
2. After verification an application reference number shall be generated and communicate
3. Then fill Part B of FORM GST REG-01, signed and submit along with documents.
4. An acknowledgement shall be issued in FORM GST REG-02 (electronic on temporary basis)
5. Proper officer after verifying above shall approve within 3 working days form application.
6. If found deficient with regards to information or documents, then it shall be intimated in FORM GST REG-03 within 3 working days form application and reply should be given within 7 working days form intimation receipt in FORM GST REG-04.
7. The reply forwarded to concerned proper officer and he may
* Grant approval within

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er steps and condition for RC shall apply mutatis mutandis.
5. RC shall be valid for 90 days subject to extension
6. Extension can be granted under Form GST REG-25
Special Comment:
At the outset emphasis must be given to governments intention of keeping each and every communication with the department in electronic form thereby defining forms for each and every communication whether from Assessee or department's side thereby promoting the Hon'ble PM view of digital India and paper less economy which would definitely be appreciated by the industry thereby reducing the manual work load and regular visiting to the department. Although huge efforts are being made by the government towards building a strong GSTN portal but it should effectively carters the need of various class of Assessee thereby enabling in “Digitalization”.
Common Points and Penal Provisions related to Registration:
Certain common & penal provisions for all the Assessee (Reference to Section 23 and 24 read with ru

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rson not registered found liable to be registered shall be register by proper officer in FORM GST REG 13, and later he shall apply for registration normally under this act as specified in rules.
7. Display GSTIN and RC in prominent place in principal place of business.
8. All communication shall be done electronically on GST site by department and Assessee and communication shall be appropriately signed by authorized person.
9. Physical verification if required by proper officer may be conducted and documents shall be uploaded in Form GST REG-26.
Amendment in registration
Amendment in registration (Reference of Section 25 read with rule 9 of Registration rule has been made)
1. Any information change which was filled at time of registration shall be intimated within 15 days to the proper officer in FORM GST REG-11 along with documents as proof.
2. Changes relates to the Name, Principal Place of Business, and details of partners or directors, Karta, Managing Committee, Board of Tr

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ss discontinued
* change in the constitution of the business
* No longer required registration
2. Cancellation may also take place if
* Contravention of any provision of this act
* Return not filled continuously for 3 month in case of composition scheme person and 6 month for others
* person taken voluntary registration don't start business within 6 month
3. Registration obtained by fraud, willful misstatement or suppression of facts, can be cancelled with retrospective effect.
4. Cancellation after giving Opportunity of being heard (in short “OBH”), by issuing SCN under FORM GST REG-15, Assessee still liable for old dues.
5. In case of cancellation ITC/CENVAT of inputs capital goods shall be reversed in prescribed manner.
6. Application may be made in FORM GST REG-14 for cancellation along with relevant documents on being satisfied proper officer shall issue cancellation order under FORM GST REG-16 within 30 days. (Apply mutatis mundis to legal heir)
7. On cancellation

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