Overview of GST Framework: Key Acts, Rules, and Updates on Tax Regulations and Recent Changes in GST Law.
GST
Goods and services tax – Acts, Rules, Statutory provisions
TMI Updates – Hig
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GST rates will have no inflationary impact: Jaitley
GST
Dated:- 29-3-2017
New Delhi, Mar 29 (PTI) Allaying apprehension of spike in prices of goods and commodities after the roll out of the GST, Finance Minister Arun Jaitley today said the tax rates will be kept at the current levels so as not to have any inflationary impact.
Introducing four bills to give effect to the Goods and Services Tax (GST), Jaitley said the legislations will have to be passed by Parliament and one by each of the state assemblies to turn India into one market with a single tax rate.
The Finance Minister said the aim of the GST Council is to decide everything relating to the tax structure with consensus and this is for the first time that such an arra
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ive powers to the Centre to levy tax after levies of excise, service tax and additional customs duty is subsumed.
The Integrated GST or IGST will be a tax to be levied by the Centre on inter-state movement of goods and services.
The States will pass the State GST or SGST law that will allow them to levy sales tax after levies like VAT are subsumed.
Besides, GST compensation law allows for imposition of cess on certain luxury goods like tobacco, high-end cars and aereated drinks to create a corpus for compensating states for any loss of revenue in the first five years of GST roll out.
The fourth law introduced is on Union Territory GST or UTGST for UTs like Chandigarh and Daman and Diu which do not have assemblies.
Jaitley said all deci
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HIGHLIGHTS OF CGST BILL
By: – Monarch Bhatt
Goods and Services Tax – GST
Dated:- 29-3-2017
* Levy & collection of CGST – The clause has been added in the levy section which is making room for the government to impose CGST on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel at a later stage based on the recommendation of the council. Of course, procedure needs to be followed for amendment in constitution as well before introducing it under GST regime.
Composition Levy – The changes has been for the rates provided under the composition scheme. The revised rates are as follows:
* Manufacturers are liable for the payment of CGST @ 1%, opting for the composition scheme.
* The person providing services alongwith supply of goods being food or any other article for human consumption or any drink excluding alcoholic liquor for human consumption are liable for the payment of CGST @ 2.5% under composition scheme. This will be beneficial
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been provided for supply of services by unincorporated association or body of persons to their member. Hence, services provided by clubs and society to their members will not be liable for the payment of CGST and it will cut down long pending battle under service tax from continuing under CGST regime.
Schedule III – The amendment has been made in Schedule III which provides for the activities neither to be treated as service nor to be treated as goods.
Clause 6 has been added which states that actionable claim other than lottery, betting and gambling neither to be treated as supply of Goods nor as Supply of Services. It is to be noted that definition of “goods” includes actionable claim and therefore without this entry actionable claim over meal voucher and shopping voucher itself was getting covered under GST regime as per model GST law. Illustration: If Sodexo issuing voucher of 5000/- and charging 500/- as processing fee or transaction fees, CGST was payable on both i.e. 5000/-
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can be availed by the supplier only if payment for such input services alongwith tax has been paid by the supplier to the provider of service within a period of 3 months. If payment has not been made by the receiver of service to the supplier of service, it will get added to the liability of receiver of such input service receiver, which will be recovered alongwith interest.
This provision has been changed completely, while introducing CGST bill. As per the CGST bill, provision is applicable on the credit availed by the receiver on supply of services as well as on supply of goods or both other than credit availed of tax paid on reverse charge basis and time period has been increased from 3 months to 180 days. Therefore, if credit has been availed on services, or goods or of both (other than reverse charge credit) payment for the value as well as for the taxes must be made within a period of 180 days, otherwise it will get added to the liability of the receiver which will be recovere
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GST BILLS TABLED – TO BE A REALITY NOW
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 29-3-2017
The Union Government has introduced the four GST related Bills in the Parliament (Lok Sabha or lower house) on 27th March, 2017. These four bills moved in the lower house of Parliament are the Central Goods and Services Tax (CGST) Bill, Integrated Goods and Services Tax (IGST) Bill, the Goods and Services Tax (Compensation to States) Bill and the Union Territory Goods and Services Tax (UT-GST) Bill.
These Bills are crucial to implement the goods and services tax in India which is most likely to be from July, 2017. The draft of these Bills were approved by the Union Cabinet on 21st March, 2016 after all hurdles wer
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of legislations:
Law
To be passed by
For
Central GST Bill, 2017
Parliament
To authorize and administer levy of CGST in country
Integrated GST Bill 2017
Parliament
To authorize and administer levy of IGST on inter-state movement of goods and services
UT-GST Bill 2017
Parliament
To authorize and administer levy of GST in the jurisdiction of Union Territory
State GST Bill 2017
Legislative assemblies of States
To authorize and administer levy of SGST in the States for intra-state movement of goods and services
GST (Compensation to States) Bill, 2017
Parliament
To authorize Union Government to compensate the States / UTs for any revenue loss arising from introduction of GST in India for 5 years.
It is expected that State Gove
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e percent
* Services imported into India will be taxed on reverse charge basis
* Shopping vouchers to be taxed at the time of redemption
* Alcoholic liquor and specified petroleum products are out of GST
* Online services (OIDAR) will be taxed under IGST
* Balance in Compensation Fund after 5 year will be shared between the Centre and States
* States to receive provisional compensation on bimonthly basis from centre for loss of revenue from implementation
* Financial year 2015-16 to be the base year for computing compensation.
In the meantime, GST Council shall decide on the following issues and close them before GST is introduced:
* Fitment of goods and services in the GST rate slabs
* Exemptions and abatements
* GST r
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Is the earning from Freelancer.com eligible for GST or Service Tax?
Query (Issue) Started By: – Pankaj Garg Dated:- 28-3-2017 Last Reply Date:- 31-3-2017 Service Tax
Got 3 Replies
Service Tax
I am a freelancer in a Australia based website called freelancer.com. Freelancer.com is about getting IT work done or developing websites/softwares. Finally, whatever we earn will be received in local bank in India.
Question: Am I eligible for GST or Service Tax or not?
Reply By KASTURI SETHI
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Jaitley briefs MPs about GST bills introduced in Lok Sabha
GST
Dated:- 28-3-2017
New Delhi, Mar 28 (PTI) Finance Minister Arun Jaitley today briefed lawmakers about the four GST bills introduced in Lok Sabha which will be taken up for consideration tomorrow.
Jaitley told MPs that the passage of these bills, which were introduced in the Lower House yesterday, will result in one-nation one-tax regime, Parliamentary Affairs Minister Ananth Kumar told reporters after the meeting.
The Finance Minister explained in detail the four billsCentral GST, Integrated GST, Union Territory GST and the Compensation Lawto MPs and how they would be beneficial to the common man.
Prime Minister Narendra Modi had earlier said that the government
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GST Bills in present form not acceptable: Cong
GST
Dated:- 28-3-2017
New Delhi, Mar 28 (PTI) The GST Bills in their present form were "not acceptable" to the Congress, but the party sought to tread cautiously to avoid being seen as against the tax reform measure.
At a key strategy meeting of Congress MPs in the Lok Sabha chaired by party vice president Rahul Gandhi, it was decided to raise the concerns of the public on the GST Bills and seek necessary amendments.
According to sources, Gandhi told the members that the party should play the role of a constructive opposition and should not be seen as against the GST legislations.
He also told the members to raise the issue of the farmers' distress and press for a
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Govt wants to pass GST bills through consensus: Jaitley
GST
Dated:- 28-3-2017
New Delhi, Mar 28 (PTI) Finance Minister Arun Jaitley today said the GST bills are based on the principle of "shared sovereignty" and that the government wants to pass these landmark tax reforms through consensus.
Jaitley was briefing the party MPs after BJP's parliamentary party meeting here which was also attended by Prime Minister Narendra Modi, Parliamentary Affairs Minister Ananth Kumar told reporters after the meeting.
"The finance minister in detail briefed the party MPs about all the four Goods and Service(GST) bills and said these legislations are based on the principle of shared sovereignty," Kumar said, adding the
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uld lead to one tax regime for the entire country.
Yesterday, Jaitley had introduced the 4 GST bills to implement the biggest tax reform since independence.
The government proposes to launch GST from July 1.
It is estimated that the rolling out of the GST can add up to 2 per cent to India's economic growth.
Former Karnataka Chief Minister and Congress stalwart S M Krishna, who recently joined the BJP, was also present at the meeting.
During the meet, Congress leader and former union minister M V Rajasekharan's letter showering praise on the prime minister was discussed.
The Cabinet's decision to set up a National Commission for Socially and Educationally Backward Classes with constitutional status, was also discussed durin
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FREQUENTLY ASKED QUESTIONS (FAQs)- GST Migration
GST
Dated:- 28-3-2017
Q1. I am an existing PAN-based Service Tax (ST) and Central Excise (CE) assessee, and wish to enroll in GST. I have business premises and factories in the State of Telangana. Through the ACES portal, I received the Provisional ID and password for the State of Andhra Pradesh, whereas my Principle Place of Business is in Telangana.
A: Assessees situated in the State of "Telangana", but incorrectly issued Provisional IDs and passwords for "Andhra Pradesh", have now been issued new Provisional IDs and passwords for "Telangana". The previous Provisional IDs and passwords issued for "Andhra Pradesh" have been cancelled, and can no longer be used for migrating to GST. You are requested to get new Provisional IDs and passwords through the ACES portal at www.aces.gov.in and complete the GST migration process. In case of any difficulties, please contact the CBEC Mitra He
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ess premises in Delhi, and branches in Haryana, Karnataka, Maharashtra and Tamil Nadu. In this case, the assessee is issued five Provisional IDs and passwords, one for each State.
The CR assessee may also have a factory (under Central Excise or CE registration) or a Service Tax (ST) single premises registration (independent of CR) in the State of Tamil Nadu (registration number ABCDE1234FXM001 or ABCDE1234FSD001). Then a Provisional ID and password for the State of Tamil Nadu will be issued against either the CE or ST registration number mentioned earlier. In this case, the CR assessee will get four Provisional IDs and passwords for the remaining States i.e. Delhi, Haryana, Maharashtra and Karnataka.
Q3. I am an existing taxpayer and wish to enroll in GST. To complete the Provisional Registration process on the GST Common Portal, I need to enter the one-time-password (OTP) in the OTP Verification window. However, I received the OTP on my mobile number, and not on my registered email
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red the Provisional ID and password. After clicking the LOGIN button, I received the message: "User name or password is not valid. Please ensure that enrollment for your State has started".
A: For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal.
Q6. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: "Not activated".
A: For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal.
Q7. I am an existi
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id not receive the Provisional ID and password for migrating to GST.
A: You may have multiple registrations under the State VAT department. For further investigation, please contact CBEC Mitra Helpdesk at cbecmitra.helpdesk@gst.gov.in or call at the toll-free number 1800-1200-232. When requesting help, please provide your registration details to CBEC Mitra Helpdesk. CBEC Mitra Helpdesk will notify you as soon as the issue is resolved.
Q9. I am an existing PAN-based Service Tax (ST), Central Excise (CE) and State VAT assessee. For migrating to GST, I received the Provisional ID and password from the State VAT department. Do I also need to add my ST and CE registration details in the Enrolment Application also?
A: Yes, you must add your Service Tax (ST) and Central Excise (CE) registration details in GST FORM-20 on the GST Common Portal.
Note: Since GST registration is based on PAN and State, only one Provisional ID and password will be issued to a given PAN for a given State, irre
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gistration number was ST001 and after cancellation (or surrender), my current registration number is ST002. However, a Provisional ID and password has been issued against my previous registration number ST001. I logged into the ACES portal (using my existing ACES username and password), and received the Provisional ID and password for my previous registration number ST001, but not for the current registration number ST002.
A: As a policy, if the assessee has multiple registrations within a State on the same PAN, only one Provisional ID and password will be issued, as per the following order: Only one Provisional ID and password will be issued to a given PAN within a State, irrespective of the number of registrations on that PAN within that State.
Apparently, you have more than one registration i.e., ST001 and ST002, of which registration number ST001 is either "Inactive" or "Surrendered". However, as per CBEC guidelines, a Provisional ID and password has already
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its, please insert a “0” or zero as prefix to the token i.e., if you received an access token of”12345678″, then the corrected token number is “0012345678”. If the issue persists, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further assistance. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
Q13. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: "Not activated".
A: Multiple causes may have contributed to this problem. For further investigation, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. When you send your service request over
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new username and password. However, I have not received the one-time- password (OTP) on my registered email. The problem continued even after I clicked the "RESEND OTP" button on the GST Common Portal.
A: The one-time-password (OTP) may have been delivered to the spam folder of your registered email ID. Please check the spam folder of your email account. If you find the OTP in the spam folder, please change the spam-filter policy settings of your email account to allow legitimate emails sent by GSTN. This will ensure that a future OTP sent by GSTN is not marked or filtered as spam. If you do not find the OTP in the spam folder, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
Q16. I am an existing taxpayer and wish to enroll
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8. I am an existing taxpayer and wish to enroll in GST. On submitting the Enrolment Application i.e., GST FORM-20 on the GST Common Portal, I received the message: “Submitted & Pending for verification".
A: Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
Q19. I am an existing taxpayer and wish to enroll in GST. On the GST Common Portal, while filing GST FORM-20, the desired RANGE CODE is not appearing in the drop-down list.
A: Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
N
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GST Bills – CGST, IGST, UTGST and Compensation Cess, introduced in Lok Sabha
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 28-3-2017
Dear Professional Colleague,
GST Bills – CGST, IGST, UTGST and Compensation Cess, introduced in Lok Sabha
With step-by-step progress towards Goods and Services Tax (“GST”), the Country is all set to witness the biggest indirect tax reform of unmatched importance in independent India. In order to engage with the stakeholders and invite comments from the public at large, the Central Government had put the Revised Model GST Law on public domain on November 26, 2016 [First Model GST Law put on public domain on June 14, 2016]. Industry Inc made threadbare analyses of the provisions cont
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ve years.
Clearing the decks for implementation of GST In India, Finance Minister Shri. Arun Jaitley on March 27 tabled four Bills of GST legislations in Lok Sabha. The discussion on the four Bills i.e. CGST, IGST, UTGST and Compensation Cess Bill could be taken up on Tuesday.
To access the GST Bills as introduced in Lok Sabha on March 27, please access the following link:
* CGST Bill as introduced in Lok Sabha
* Compensation Cess Bill as introduced in Lok Sabha
* IGST Bill as introduced in Lok Sabha
* UTGST Bill as introduced in Lok Sabha
The Government is looking at the passage of the GST Bills in the Lower House by March 29 or latest by March 30. Then, these will move to the Rajya Sabha and this gives the Government enough tim
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MEMORANDUM REGARDING DELEGATED LEGISLATION
MEMO
GST
MEMORANDUM
Integrated Goods And Services Tax Act, 2017
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 22 of the Integrated Goods and Services Tax Bill seeks to empower the Central Government to make rules, inter alia, in the following matters, namely:-
(a) collection of taxes under section 5; (b) determination of place of supply under section 10; (c) apportionment of value of supply of services when the immovable property or boat or vessel is located in more than one State or Union or when the leased circuit is installed in more than one State or Union territory or when the event is held in more than one State or Union territory or for advertisement services under section 12; (d) the place of supply of services referred to in section 13 when they are supplied in more than one State or Union territory under that section; (e) conditions and safeguards for refund of integrated tax paid on supply of goods to tourist l
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ide for them in the proposed Bill itself. The delegation of legislative power is, therefore, of a normal character.
FINANCIAL MEMORANDUM
Clauses 17 and 18 of the Bill provides for apportionment of tax and settlement of funds and for transfer of input tax credit between the Central Government, State Government and Union territory.
2. Clause 20 of the Bill provides for application of provisions of the Central Goods and Services Tax Bill, 2017 relating to appeals, advance ruling and anti-profiteering. So authorities under the Central Goods and Services Tax Act will be utilised for the purposes of the proposed legislation. Thus there will be no extra financial expenditure under this Bill.
3. The total financial implications in terms of recurring and non-recurring expenditure involved in carrying out the various functions under the Bill would be borne by the Central Government. Most of the existing officers and staff of the Central Board of Excise and Customs would be used for carrying
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he cost of production of a particular product. Further, the fact that the rate of central sales tax is different from the value added tax being levied on the intra-State sale creates a tax arbitrage which is exploited by unscrupulous elements.
3. In view of the above, it has become necessary to have a Central legislation, namely, the Integrated Goods and Services Tax Bill, 2017. The proposed Legislation will confer power upon the Central Government for levying goods and services tax on the supply of goods or services or both which takes place in the course of inter-State trade or commerce. The proposed Legislation will remove both the lacunas of the present central sales tax. Besides being vatable, the rate of tax for the integrated goods and services tax is proposed to be more or less equal to the sum total of the central goods and services tax and state goods and services tax or Union territory goods and services tax to be levied on intra-State supplies. It is expected to reduce cos
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to empower the Central Government to grant exemptions, by notification or by special order, on the recommendations of the Council;
(e) to provide for determination of the nature of supply as to whether it is an inter-State or an intra-State supply;
(f) to provide elaborate provisions for determining the place of supply in relation to goods or services or both;
(g) to provide for payment of tax by a supplier of online information and database access or retrieval services;
(h) to provide for refund of tax paid on supply of goods to tourist leaving India;
(i) to provide for apportionment of tax and settlement of funds and for transfer of input tax credit between the Central Government, State Government and Union territory;
(j) to provide for application of certain provisions of the Central Goods and Services Tax Act, 2017, inter alia, relating to definitions, time and value of supply, input tax credit, registration, returns other than late fee, payment of tax, assessment, refu
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Notes on clauses
Notes
GST
Notes on clauses
Integrated Goods And Services Tax Act, 2017
Notes on clauses
Clause 1 provides for short title, extent and commencement of the proposed Act.
Clause 2 defines various terms and expressions used in the proposed Act.
Clause 3 provides for appointment of Commissioners and other class of officers as may be required for carrying out the purposes of the proposed Act.
Clause 4 provides for authorisation of State tax and Union territory tax officers, subject to certain exceptions and conditions as shall be notified by the Central Government on recommendations of the Council, to be proper officers for the purposes of the proposed Act.
Clause 5 provides for levy and collection of integrated tax on all inter-State supplies of goods or services or both except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act at a rate not exceeding forty per cent.
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registered person shall be paid by such person on reverse charge basis;
(iv) the Central Government may notify categories of services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, on the recommendations of the Council.
Clause 6 confers powers on Central Government to exempt either absolutely or conditionally goods or services or both of any specified description from the whole or part of the integrated tax, on the recommendations of the Council. This clause also confers powers on the Central Government to exempt from payment of tax any goods or services or both, by special order, on which tax is leviable on the recommendations of the Council.
Clause 7 provides for instances where a supply of goods or services or both will be considered as inter- State supply.
Clause 8 provides for instances where a supply of goods or services or both will be considered as intra- State supply.
Clause 9 provides
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refund of integrated tax paid on supply of goods to tourists leaving India.
Clause 16 provides for zero rating of certain supplies namely exports and supplies made to Special Economic Zone Unit or Special Economic Zone developer and the manner of zero rating.
Clause 17 provides for apportionment of integrated tax and settlement of funds between the Central and State Government.
Clause 18 provides for utilisation of credit of integrated tax availed under the proposed Act for payment of central tax, Union territory tax or State tax.
Clause 19 provides for refund of integrated tax in situations where inter-State supplies are subsequently held to be intra-State supplies.
Clause 20 provides for application of specific provisions of the Central Goods and Services Tax Act to the proposed Act.
Clause 21 provides that all import of services made on or after the appointed day will be liable to integrated tax regardless of whether the transactions for such import of services had been initi
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Removal of difficulties.
Section 25
GST
MISCELLANEOUS
Integrated Goods And Services Tax Act, 2017
Removal of difficulties.
25. (1) If any difficulty arises in giving effect to any provision of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for th
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Laying of rules, regulations and notifications.
Section 24
GST
MISCELLANEOUS
Integrated Goods And Services Tax Act, 2017
Laying of rules, regulations and notifications.
24. Every rule made by the Government, every regulation made by the Board and every notification issued by the Government under this Act, shall be laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised i
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Power to make regulations.
Section 23
GST
MISCELLANEOUS
Integrated Goods And Services Tax Act, 2017
Power to make regulations.
23. The Board may, by notification, make regulations con
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Power to make rules.
Section 22
GST
MISCELLANEOUS
Integrated Goods And Services Tax Act, 2017
Power to make rules.
22. (1) The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act.
(2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provis
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Import of services made on or after the appointed day.
Section 21
GST
MISCELLANEOUS
Integrated Goods And Services Tax Act, 2017
Import of services made on or after the appointed day.
21. Import of services made on or after the appointed day shall be liable to tax under the provisions of this Act regardless of whether the transactions for such import of services had been initiated before the appointed day:
Provided that if the tax on such import of services had been paid in full
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Application of provisions of Central Goods and Services Tax Act.
Section 20
GST
MISCELLANEOUS
Integrated Goods And Services Tax Act, 2017
CHAPTER IX
MISCELLANEOUS
Application of provisions of Central Goods and Services Tax Act.
20. Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to,
(i) scope of supply;
(ii) composite supply and mixed supply;
(iii) time and value of supply;
(iv) input tax credit;
(v) registration;
(vi) tax invoice, credit and debit notes;
(vii) accounts and records;
(viii) returns, other than late fee;
(ix) payment of tax;
(x) tax deduction at source;
(xi) collection of tax at source;
(xii) assessment
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. from the payment made or credited to the supplier:
Provided further that in the case of tax collected at source, the operator shall collect tax at such rate not exceeding two per cent, as may be notified on the recommendations of the Council, of the net value of taxable supplies:
Provided also that for the purposes of this Act, the value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier:
Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax Act and the State Goods and Services Tax Act or the Union Territor
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Tax wrongfully collected and paid to Central Government or State Government.
Section 19
GST
APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS
Integrated Goods And Services Tax Act, 2017
Tax wrongfully collected and paid to Central Government or State Government.
19. (1) A registered person who has paid integrated tax on a supply considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall be granted refund of the amount of integrated
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Transfer of input tax credit.
Section 18
GST
APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS
Integrated Goods And Services Tax Act, 2017
Transfer of input tax credit.
18. On utilisation of credit of integrated tax availed under this Act for payment of,
(a) Central tax in accordance with the provisions of sub-section (5) of section 49 of the Central Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the central tax account in such manner and within such time as may be prescribed;
(b) Union territory tax in accordance with the pr
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Apportionment of tax and settlement of funds.
Section 17
GST
APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS
Integrated Goods And Services Tax Act, 2017
CHAPTER VIII
APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS
Apportionment of tax and settlement of funds.
17. (1) Out of the integrated tax paid to the Central Government,
(a) in respect of inter-State supply of goods or services or both to an unregistered person or to a registered person paying tax under section 10 of the Central Goods and Services Tax Act;
(b) in respect of inter-State supply of goods or services or both where the registered person is not eligible for input tax credit;
(c) in respect of inter-State supply of goods or services or both made in a financial
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s in the integrated tax account after expiry of the due date for furnishing of annual return for such year in which the supply was received,
the amount of tax calculated at the rate equivalent to the central tax on similar intra-State supply shall be apportioned to the Central Government.
(2) The balance amount of integrated tax remaining in the integrated tax account in respect of the supply for which an apportionment to the Central Government has been done under sub-section (1) shall be apportioned to the,
(a) State where such supply takes place; and
(b) Central Government where such supply takes place in a Union territory:
Provided that where the place of such supply made by any taxable person cannot be determined separately, the
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ion (2) may, for the time being, on the recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central Government and fifty per cent. to the State Governments or the Union territories, as the case may be, on ad hoc basis and shall be adjusted against the amount apportioned under the said sub-sections.]
(3) The provisions of sub-sections (1) and (2) relating to apportionment of integrated tax shall, mutatis mutandis, apply to the apportionment of interest, penalty and compounding amount realised in connection with the tax so apportioned.
(4) Where an amount has been apportioned to the Central Government or a State Government under sub-section (1) or sub-section (2) or sub-section (3), the amount collected as i
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Zero rated supply.
Section 16
GST
ZERO RATED SUPPLY
Integrated Goods And Services Tax Act, 2017
CHAPTER VII
ZERO RATED SUPPLY
Zero rated supply.
16. (1) “zero rated supply” means any of the following supplies of goods or services or both, namely:
(a) export of goods or services or both; or
(b) supply of goods or services or both 1[for authorised operations] to a Special Economic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.
2[(3) A registered person making zero rated supply shall be elig
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, 1999 (42 of 1999.) for receipt of foreign exchange remittances, in such manner as may be prescribed.
(4) The Government may, on the recommendation of the Council, and subject to such conditions, safeguards and procedures, by notification, specify
(i) a class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax so paid 3[in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder];
(ii) a class of goods or services 4[or both, on zero rated supply of which, the supplier may pay integrated tax and claim the refund of tax so paid, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules ma
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to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,
in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder."
3.
Inserted vide Section 153 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-11-2024
4.
Substituted vide Section 153 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-11-2024 before it was read as,
"which may be
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Refund of integrated tax paid on supply of goods to tourist leaving India.
Section 15
GST
REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST
Integrated Goods And Services Tax Act, 2017
CHAPTER VI
REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST
Refund of integrated tax paid on supply of goods to tourist leaving India.
15. The integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditi
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Special provision for payment of tax by a supplier of online information and database access or retrieval services
Section 14
GST
PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH
Integrated Goods And Services Tax Act, 2017
Special provision for payment of tax by a supplier of online information and database access or retrieval services
14. (1) On supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services:
Provided that in the case of supply of online information and database access o
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charge to the customer or take part in its charge which is that the intermediary neither collects or processes payment in any manner nor is responsible for the payment between the non-taxable online recipient and the supplier of such services;
(c) the intermediary involved in the supply does not authorise delivery; and
(d) the general terms and conditions of the supply are not set by the intermediary involved in the supply but by the supplier of services.
(2) The supplier of online information and database access or retrieval services referred to in sub-section (1) shall, for payment of integrated tax, take a single registration under the Simplified Registration Scheme to be notified by the Government:
Provided that any person locate
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Place of supply of services where location of supplier or location of recipient is outside India.
Section 13
GST
PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH
Integrated Goods And Services Tax Act, 2017
Place of supply of services where location of supplier or location of recipient is outside India.
13. (1) The provisions of this section shall apply to determine the place of supply of services where the location of the supplier of services or the location of the recipient of services is outside India.
(2) The place of supply of services except the services specified in sub-sections (3) to (13) shall be the location of the recipient of services:
Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services.
(3) The place of supply of the following services shall be the location where the services are actually performed, namely:-
(a) services sup
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e recipient or the person acting on his behalf, with the supplier for the supply of services.
(4) The place of supply of services supplied directly in relation to an immovable property, including services supplied in this regard by experts and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including that of architects or interior decorators, shall be the place where the immovable property is located or intended to be located.
(5) The place of supply of services supplied by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place where the event is actually held.
(6) Where any services referred to in sub-sect
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o account holders;
(b) intermediary services;
(c) services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month.
Explanation.For the purposes of this sub-section, the expression,
(a) “account” means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account;
(b) “banking company” shall have the same meaning as assigned to it under clause (a) of section 45A of the Reserve Bank of India Act, 1934; (2 of 1934.)
(c) ''financial institution” shall have the same meaning as assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934; (2 of 1934.)
(d) “non-banking financial company” means,
(i) a financial institution which is a company;
(ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lend
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ollowing non-contradictory conditions are satisfied, namely:
(a) the location of address presented by the recipient of services through internet is in the taxable territory;
(b) the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory;
(c) the billing address of the recipient of services is in the taxable territory;
(d) the internet protocol address of the device used by the recipient of services is in the taxable territory;
(e) the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory;
(f) the country code of the subscriber identity module card used by the recipient of services is of taxable territory;
(g) the location of the fixed land line through which the service is received by the recipient is in the taxable territory.
(13) In order to prevent double taxation or non-taxation o
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