Author: admin_gst

Transfer of input tax credit
Section 47
Bill
TRANSFER OF INPUT TAX CREDIT
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
CHAPTER-X
TRANSFER OF INPUT TAX CREDIT
47. Transfer of input tax credit
On utilization of input tax credit availed under the CGST Act for payment of tax dues under the IGST Act as per sub-section Error! Reference source not found. of section 44, the amount collected as CGST shall stand reduced by an amount equ

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OTHER PROVISIONS RELATING TO CESS
Section 11
Bill
GST – Compensation to the States for Loss of Revenue
Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016]
11. OTHER PROVISIONS RELATING TO CESS
(1) The provisions of the Central Goods and Tax Act, 2016, and the rules made thereafter, including those relating to assessment, input tax credit (subject to sub-section (3)), non-levy, short-levy, interest, appeals, offences and penalties, shall, as far as may be, apply mutatis mutandis in relation to the levy and collection of the cess leviable under section 8 on the intrastate supply of goods and services, as they apply in relation to the levy and collection of Central Goo

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Tax deduction at source
Section 46
Bill
PAYMENT OF TAX
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
46. Tax deduction at source
(1) Notwithstanding anything contained to the contrary in this Act, the Central or a State Government may mandate, –
(a) a department or establishment of the Central or State Government, or
(b) Local authority, or
(c) Governmental agencies, or
(d) such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council,
[hereinafter referred to in this section as “the deductor”], to deduct tax at the rate of one percent from the payment made or credited to the supplier [hereinafter

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the contract value, rate of deduction, amount deducted, amount paid to the appropriate Government and such particulars as may be prescribed in this behalf.
(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the appropriate Government, the deductor shall be liable to pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of the five day period until the failure is rectified:
PROVIDED that the amount of fee payable under this sub-section shall not exceed five thousand rupees.
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return o

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CREDITING PROCEEDS OF CESS TO GST COMPENSATION FUND
Section 10
Bill
GST – Compensation to the States for Loss of Revenue
Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016]
10. CREDITING PROCEEDS OF CESS TO GST COMPENSATION FUND
(1) The proceeds of the GST Compensation Cess leviable under section 8 shall be credited to a non-lapsable fund known as the GST Compensation Fund in the Public Account, and shall be utilized for

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Interest on delayed payment of tax
Section 45
Bill
PAYMENT OF TAX
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
45. Interest on delayed payment of tax
(1) Every person liable to pay tax in accordance with the provisions of the Act or rules made thereunder, who fails to pay the tax or any part thereof to the account of the Central or a State Government within the period prescribed, shall, on his own, for the period for which the t

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RETURNS, PAYMENTS AND REFUNDS
Section 9
Bill
GST – Compensation to the States for Loss of Revenue
Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016]
9. RETURNS, PAYMENTS AND REFUNDS
(1) Every taxable person registered under CGST Act, 2016, making a taxable supply of goods and/or services, shall furnish such returns in such formats, as may be prescribed, along with the returns to be filed under the Central Goods and Serv

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Tax Return Preparers
Section 43
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
43. Tax Return Preparers
(1) The appropriate Government may, by rules, prescribe the manner of approval of Tax Return Preparers, their eligibility conditions, duties and obligations, manner of removal and such other conditions as may be relevant for their functioning as a Tax Return Preparer.
(2) A registered taxable person may, in the ma

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LEVY AND COLLECTION OF GST COMPENSATION CESS
Section 8
Bill
GST – Compensation to the States for Loss of Revenue
Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016]
8. LEVY AND COLLECTION OF GST COMPENSATION CESS
There shall be levied and collected in accordance with the provisions of this Act, a cess to be called the GST Compensation Cess at such rate as may be notified, but not exceeding…. Per cent, on the value

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Payment of tax, interest, penalty and other amounts
Section 44
Bill
PAYMENT OF TAX
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
CHAPTER-IX
PAYMENT OF TAX
44. Payment of tax, interest, penalty and other amounts
(1) Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet banking or by using credit/debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by any other mode, subject to such conditions and restrictions as may be prescribed in this behalf, shall be credited to the electronic cash ledger of such person to be maintained in the manner as may be prescribed.
Explanation.- The date of credit

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yment towards output tax payable under the provisions of the Act or the rules made thereunder in such manner and subject to such conditions and within such time as may be prescribed.
(5) (a) The amount of input tax credit on account of IGST available in the electronic credit ledger shall first be utilized towards payment of IGST and the amount remaining, if any, may be utilized towards the payment of CGST and SGST, in that order.
(b) The amount of input tax credit on account of CGST available in the electronic credit ledger shall first be utilized towards payment of CGST and the amount remaining, if any, may be utilized towards the payment of IGST.
(c) The input tax credit on account of CGST shall not be utilized towards payment of SG

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ronic liability register as may be prescribed.
(8) Every taxable person shall discharge his tax and other dues under this Act or the rules made thereunder in the following order:
(a) self-assessed tax, and other dues related to returns of previous tax periods;
(b) self-assessed tax, and other dues related to return of current tax period;
(c) any other amount payable under the Act or the rules made thereunder including the demand determined under section 66 or 67.
(9) Every person who has paid the tax on goods and/or services under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such tax to the recipient of such goods and/or services.
Explanation. 1- For the purposes of this

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Levy of late fee
Section 42
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
42. Levy of late fee
(1) Any registered taxable person who fails to furnish the details of outward or inward supplies required under section 32 or section 33, as the case may be, or returns required under section 34 or section 40 by the due date shall be liable to pay late fee of one hundred rupees for every day during which such failure contin

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Notice to return defaulters
Section 41
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
41. Notice to return defaulters
Where a registered taxable person fails to furnish a return under section 34, section 39 or section 40, a notice shall be issued requiring him to furnish such return within fifteen days in such form and manner as may be prescribed.
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Statute, statutory provisions legislation, law, enactment, Acts,

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Final return
Section 40
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
40. Final return
Every registered taxable person who applies for cancellation of registration shall furnish a final return within three months of the date of cancellation or date of cancellation order, whichever is later, in such form and in such manner as may be prescribed.
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Statute, statutory provisions legislation, law, enactment, Acts, Ru

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CALCULATION AND RELEASE OF COMPENSATION
Section 7
Bill
GST – Compensation to the States for Loss of Revenue
Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016]
7. CALCULATION AND RELEASE OF COMPENSATION
(1) The GST compensation payable to a State shall be provisionally calculated and released at the end of every quarter, and shall be finally calculated for every financial year after the receipt of final revenue figures, as audited by the Comptroller and Auditor General of India (CAG).
Provided further that in case any excess amount has been released as GST compensation to a State in any financial year during the transition period, as per the CAG audited figures of

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and Services Tax apportioned to that State, as certified by the Comptroller and Auditor General of India.
(c) Total GST compensation payable in any financial year shall be the difference between the projected revenue for any financial year and the actual revenue collected by a State as defined in sub-section (b).
(3) The loss of revenue at the end of any quarter in any year for a State during the transition period shall be calculated at the end of every quarter as follows:
(a) The projected revenue that could have been earned by the State in absence of GST till the end of the relevant quarter of the respective financial year would be calculated on a pro-rata basis as a percentage of the total projected revenue for any financial year d

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the end of the relevant quarter in any financial year shall be the difference between the projected revenue for till the end of the relevant period as per sub-section (3)(a) and the actual revenue collected by a State in the said period as defined in sub-section (3)(b), reduced by the provisional GST compensation paid to a State till the end of the previous quarter in the said financial year during the transition period.
(4) In case of any difference between the final GST compensation amount payable to a State calculated as per provisions of sub-section (2) upon receipt of the audited revenue figures from the CAG, and the total provisional GST compensation amount released to a State in the said financial year as per sub-section (3), the

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Annual return
Section 39
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
39. Annual return
(1) Every registered taxable person, other than an input service distributor, a person paying tax under section 46 or section 56, a casual taxable person and a nonresident taxable person, shall furnish an annual return for every financial year electronically in such form and in such manner as may be prescribed on or before the th

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Matching, reversal and reclaim of reduction in output tax liability
Section 38
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
38. Matching, reversal and reclaim of reduction in output tax liability
(1) The details of every credit note relating to outward supply furnished by a registered taxable person (hereinafter referred to in this section as the 'supplier') for a tax period shall, in the manner and within the time prescribed, be matched-
(a) with the corresponding reduction in the claim for input tax credit by the corresponding taxable person (hereinafter referred to in this section as the 'recipient') in his valid return for the same tax period or any subse

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liability shall be communicated to the supplier in the manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under subsection (3) and which is not rectified by the recipient in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier, in the manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated.
(6) The amount in respect of any reduction in output tax liability that is found to be on account of duplication of claims shall be added to the output tax liability of the supplier in his return for the month in which such duplication is communicated.
(7) The supplier

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r sub-section (8) shall be refunded to the supplier by crediting the amount in the corresponding head of his electronic cash ledger in the manner as may be prescribed:
PROVIDED that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the recipient.
(10) The amount reduced from output tax liability in contravention of the provision of sub-section (7) shall be added to the output tax liability of the supplier in his return for the month in which such contravention takes place and such supplier shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 45 .
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Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations,

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Section 6
PROJECTED REVENUE FOR ANY YEAR
Bills
GST – Compensation to the States for Loss of Revenue
Section 6 of Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016]
6. PROJECTED REVENUE FOR ANY YEAR
The projected revenue for any year in a State shall be calculated by applying the projected growth rate over the base year revenue of that State.
Illustration: If the base year revenue for 2015-16 for a concerned State, calcu

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Matching, reversal and reclaim of input tax credit
Section 37
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
37. Matching, reversal and reclaim of input tax credit
(1) The details of every inward supply furnished by a registered taxable person (hereinafter referred to in this section as the 'recipient') for a tax period shall, in the manner and within the time prescribed, be matched-
(a) with the corresponding details of outward supply furnished by the corresponding taxable person (hereinafter referred to in this section as the 'supplier') in his valid return for the same tax period or any preceding tax period,
(b) with the additional duty of customs paid und

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supplier in his valid returns, the discrepancy shall be communicated to both such persons in the manner as may be prescribed.
(4) The duplication of claims of input tax credit shall be communicated to the recipient in the manner as may be prescribed.
(5) The amount in respect of which any discrepancy is communicated under subsection (3) and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the recipient, in the manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated.
(6) The amount claimed as input tax credit that is found to be in excess on account of duplication of c

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id sub-sections.
(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to the recipient by crediting the amount in the corresponding head of his electronic cash ledger in the manner as may be prescribed:
PROVIDED that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the supplier.
(10) The amount reduced from the output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the recipient in his return for the month in which such contravention takes place and such recipient shall be liable to pay interest on the amount so added at the rate speci

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Claim of input tax credit and provisional acceptance thereof
Section 36
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
36. Claim of input tax credit and provisional acceptance thereof
(1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed in this behalf, be entitled to take credit of input tax, as self-assessed in his return and such amount shall be credited, on a p

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First Return
Section 35
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
35. First Return
Every registered taxable person who has made outward supplies in the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return filed by him after grant of registration.
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Returns
Section 34
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
34. Returns
(1) Every registered taxable person, other than an input service distributor or a nonresident taxable person or a person paying tax under the provisions of section 9, section 46 or section 56 shall, for every calendar month or part thereof, furnish, in such form and in such manner as may be prescribed, a return, electronically, of inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars as may be prescribed on or before the twentieth day of the month succeeding such calendar month or part thereof.
(2) A registered taxa

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part thereof, furnish, in such form and in such manner as may be prescribed, a return, electronically, within thirteen days after the end of such month.
(5) Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in such form and in such manner as may be prescribed, a return, electronically, within twenty days after the end of a calendar month or within seven days after the last day of the validity period of registration, whichever is earlier.
(6) The Commissioner of [CGST/SGST] may, for valid and sufficient reasons, by notification, for such class of taxable persons as may be specified therein, extend the time limit for furnishing the returns under sub-section (1), (2), (3), (4) or, as th

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been effected during such tax period.
(9) Subject to the provisions of sections 32 and 33, if any taxable person after furnishing a return under sub-section (1), (2) or, as the case may be, under subsection (4) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter, as the case may be, during which such omission or incorrect particulars are noticed, subject to payment of interest, where applicable and as specified in the Act:
PROVIDED that no such rectification of any omission or incorrect particulars shall be allowed after

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Furnishing details of inward supplies
Section 33
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
33. Furnishing details of inward supplies
(1) Every registered taxable person, other than an input service distributor or a nonresident taxable person or a person paying tax under section 9, section 46 or section 56, shall verify, validate, modify or, if required, delete the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section 32 to prepare the details of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of suc

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h form and manner as may be prescribed:
PROVIDED that the Commissioner may, for valid and sufficient reasons, by notification, for such class of taxable persons as may be specified therein, extend the time limit for furnishing such details:
PROVIDED FURTHER that any extension of time limit approved by the Commissioner of [Central/State] Goods and Services Tax shall be deemed to be approved by the Commissioner of [State/Central] Goods and Services Tax.
(3) The details of supplies modified, deleted or included by the recipient and furnished under sub-section (2) shall be communicated to the supplier concerned in the manner and within the time as may be prescribed.
(4) The details of supplies modified, deleted or included by the recipi

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Furnishing details of outward supplies
Section 32
Bill
RETURNS
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
CHAPTER- VIII
RETURNS
32. Furnishing details of outward supplies
(1) Every registered taxable person, other than an input service distributor, a nonresident taxable person and a person paying tax under the provisions of section 9, section 46 or section 56, shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services effected, during a tax period on or before the tenth day of the month succeeding the said tax period and such details shall be communicated to the recipient of the said supplies within

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on who has been communicated the details under sub-section (3) of section 33 or the details pertaining to inward supplies of input service distributor under sub-section (4) of section 333, shall either accept or reject the details so communicated, on or before the seventeenth day of the month succeeding the tax period and the details furnished by him under subsection (1) shall stand amended accordingly.
(3) Any registered taxable person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched under section 37 or section 38, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as

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Credit and debit notes
Section 31
Bill
TAX INVOICE, CREDIT AND DEBIT NOTES
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
31. Credit and debit notes
(1) Where a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where services supplied are found to be deficient, the registered taxable person, who has supplied such goods and/or services, may issue to the recipient a credit note containing such particulars as may be prescribed.
(2) Any registered taxable pe

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Amount of tax to be indicated in tax invoice and other documents
Section 30
Bill
TAX INVOICE, CREDIT AND DEBIT NOTES
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
30. Amount of tax to be indicated in tax invoice and other documents
Notwithstanding anything contained in this Act or any other law for the time being in force, where any supply is made for a consideration, every person who is liable to pay tax for such supply shall pr

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Tax not to be collected by unregistered taxable person
Section 29
Bill
TAX INVOICE, CREDIT AND DEBIT NOTES
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
29. Tax not to be collected by unregistered taxable person
A person who is not a registered taxable person shall not collect in respect of any supply of goods and/or services any amount by way of tax under the CGST/SGST Act and no registered taxable person shall make any such col

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