Author: admin_gst

Place of supply of goods imported into, or exported from India
Section 8
Bill
PLACE OF SUPPLY OF GOODS AND/OR SERVICES
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
8. Place of supply of goods imported into, or exported from India
(1) The place of supply of goods imported into India shall be the location of the importer.
(2) The place of supply of goods exported from India shall be the location outside India.
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Statute, statu

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Classes of officers under the Central Goods and Services Tax Act
Section 4
Bill
ADMINISTRATION
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
CHAPTER II
ADMINISTRATION
4. Classes of officers under the Central Goods and Services Tax Act
(1) There shall be the following classes of officers under the Central Goods and Services Tax Act, namely;
(a) Principal Chief Commissioners of CGST or Principal Directors General of CGST,
(b)

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Place of supply of goods other than supply of goods imported into, or exported from India
Section 7
Bill
PLACE OF SUPPLY OF GOODS AND/OR SERVICES
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
7. Place of supply of goods other than supply of goods imported into, or exported from India
(1) The provisions of this section shall apply to determine the place of supply of goods other than supply of goods imported into, or exported from India.
(2) Where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of goods shall be the location of the goods at the time at which the movement of goods terminates for delivery

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Meaning and scope of supply
Section 3
Bill
PRELIMINARY
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
3. Meaning and scope of supply
(1) Supply includes-
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business,
(b) importation of services, for a consideration whether or not in the course or furtherance of business, and
(c) a supply specified in Schedule I, made or agreed to be made without a consideration.
(2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or

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Power to grant exemption from tax
Section 6
Bill
LEVY AND COLLECTION OF TAX
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
6. Power to grant exemption from tax
(1) Any exemption granted by the Central Government on the recommendation of the Council, under section 11 of the CGST Act in respect of intra-State supply of goods and/or services of any specified description, shall apply mutatis mutandis to inter-State supply of goods and/or services of the said description unless specifically provided otherwise.
(2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendation of the Council, by notification, exempt genera

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order, any goods and/or services on which tax is leviable.
(4) The Central Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.
(5) Every notification issued under sub-section (1) or sub-section (3) and every order issued under sub-section (2) shall

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Levy and collection of Integrated Goods and Services Tax
Section 5
Bill
LEVY AND COLLECTION OF TAX
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
5. Levy and collection of Integrated Goods and Services Tax
(1) There shall be levied a tax called the Integrated Goods and Services Tax on all supplies of goods and/or services made in the course of inter-State trade or commerce on the value determined under section 15 of CGST Act, 2016 and at such rates as may be notified by the Central Government in this behalf, but not exceeding twenty eight percent, on the recommendation of Council and collected in such manner as may be prescribed and shall be paid by every taxable person in acco

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ecipient as if he is the person liable for paying the tax in relation to the supply of such goods and/or services.
(3) The Central Government may, on the recommendation of the Council, by notification, specify categories of services the tax on which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the person liable for paying the tax in relation to the supply of such services:
PROVIDED that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable

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Supplies of goods and/or services in the course of intra-State trade or commerce
Section 4
Bill
PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE COURSE OF INTER – STATE TRADE OR COMMERCE
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
4. Supplies of goods and/or services in the course of intra-State trade or commerce
(1) Subject to the provisions of section 7, intra-State supply of goods means any supply of goods wh

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Definitions
Section 2
Bill
PRELIMINARY
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
2. Definitions
In this Act, unless the context otherwise requires,-
(1) “actionable claim” shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882 (4 of 1882);
(2) “address of delivery” means the address of the recipient of goods and/or services indicated on the tax invoice issued by a taxable person for delivery of such goods and/or services;
(3) “address on record” means the address of the recipient as available in the records of the supplier;
(4) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, the Revisional Authority, Authority for Advance Ruling, Appellate Authority for Advance Ruling, the First Appellate Authority and the Appellate Tribunal;
(5) “agent” means a person, including a factor, broker, commissio

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y farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants;
Explanation.- For the purpose of this clause, the expression 'forest' means the forest to which the Indian Forest Act, 1927 (XVI of 1927) applies.
(8) “agriculturist” means a person who cultivates land personally, for the purpose of agriculture;
(9) "Appellate Tribunal" means the National Goods and Services Tax Appellate Tribunal constituted under section 100;
(10) “appointed day'' means the date on which section 1 of this Act comes into effect;
(11) “appropriate Government” means the Central Government in case of the IGST and the CGST, and the State Government in case of the SGST;
(12) “assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgement assessment;
(13) "associated enterprise" shall have the

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y 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) supply or acquisition of goods including capital assets and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members, as the case may be;
(f) admission, for a consideration, of persons to any premises; and
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a licence to book maker in such club;
Explanation.- Any activity or transaction undertaken by the Central Government, a State Governme

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used or intended to be used in the course or furtherance of business;
(20) “casual taxable person” means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business;
(21) “CGST” means the tax levied under the Central Goods and Services Tax Act, 2016;
(22) “chartered accountant” means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949);
(23) “commissioner” means the Commissioner of Central Goods and Services Tax / Commissioner of State Goods and Services Tax and includes Principal Commissioner of Central Goods and Services Tax / Principal Commissioner of State Goods and Services Tax / Chief Commissioner of State Goods and Services Tax appointed under section 4 of the Central/State Goods and Services Tax Act, 2016;
(24) “common portal” means the com

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e principal supply.
(28) “consideration” in relation to the supply of goods or services includes
(a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;
(b) the monetary value of any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government:
PROVIDED that a deposit, whether refundable or not, given in respect of the supply of goods or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply;
(29) “continuous journey” means a journey for which a single or

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under a contract, for a period exceeding three months with periodic payment obligations and includes supply of such service as the Central or a State Government may, whether or not subject to any condition, by notification, specify;
(32) “conveyance” includes a vessel, an aircraft and a vehicle;
(33) “cost accountant” means a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959);
(34) “Council” means the Goods and Services Tax Council established under Article 279A of the Constitution;
(35) “credit note” means a document issued by a taxable person as referred to in sub-section (1) of section 31;
(36) “debit note” means a document issued by a taxable person as referred to in sub-section (3) of section 31;
(37) “deemed exports”, as notified by the Central Government/State Government on the recommendation of the Council, refer to those transactions in which the goods supplied do not leave India, and payment for such supplies is received e

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credit ledger” means the electronic credit ledger referred to in sub-section (2) of section 44;
(44) “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 ;
(45) “First Appellate Authority” means an authority referred to in section 98;
(46) “first stage dealer” means a dealer, who purchases the goods directly from,-
(i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice; or
(ii) an importer or from the depot of an importer or from the premises of the consignment agent of the importer, under cover of an invoice;
(47) “fixed establishment” me

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and Services Tax Act, 2016;
(52) “input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business;
(53) “input service” means any service used or intended to be used by a supplier in the course or furtherance of business;
(54) "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 the credit of CGST (SGST in State Acts) and / or IGST paid on the said services to a supplier of taxable goods and / or services having same PAN as that of the office referred to above;
(55) "input tax" in relation to a taxable person, means the IGST, including that on import of goods, CGST and SGST charged on any supply of goods or services to him and includes the tax payable under sub-section (3) of section 8, but does not include the

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243 of the Constitution;
(b) a “Municipality” as defined in clause (e) of Article 243P of the Constitution;
(c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central or any State Government with the control or management of a municipal or local fund;
(d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of 2006);
(e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
(f) a Development Board constituted under Article 371 of the Constitution; or
(g) a Regional Council constituted under Article 371A of the Constitution;
(63) “manufacturer” shall have the meaning assigned to it by the Central Excise Act, 1944 (1 of 1944);
(64) “market value” shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods and/or services of like kind and quality at or about the same time and at the sa

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eparately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.
(67) "motor vehicle" has the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(68) “non-resident taxable person” means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India;
(69) “non-taxable territory” means the territory which is outside the taxable territory;
(70) “notification” means notification published in the Official Gazette and the expressions 'notify' and 'notified' shall be construed accordingly;
(71) “output tax” in relation to a taxable person, means the CGST/SGST chargeable under this Act on taxable supply of goods and/or services made by him or by his agent and excludes tax payable by him on reverse charge basis;
(72) “outward supply” in rel

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(n) every artificial juridical person, not falling within any of the preceding sub-clauses;
(74) “place of business” includes
(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called;
(75) “prescribed'' means prescribed by the rules, regulations or by any notification issued under this Act;
(76) “principal” means a person on whose behalf an agent carries on the business of supply or receipt of goods and/or services;
(77) “principal place of business” means the place of business specified as the principal place of business in the certificate of registration;
(78) “principal supply” means the supply of goods or services which constitutes the predominant element

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tion is payable for the supply of a service, the person to whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply;
Explanation.- The expression “recipient” shall also include an agent acting as such on behalf of the recipient in relation to the goods and/or services supplied.
(82) “registered importer” means the importer registered in terms of the provisions of Central Excise Rules, 2002;
(83) “regulations” means the regulations made by the Commissioner under any provision of the Act on the recommendation of the Council;
(84) persons shall be deemed to be “related persons'' if only –
(a) they are officers or directors of one another's businesses;
(b) they are legally recognized partners in business;
(c) they are employer and employee;
(d) any person directly or indirectly owns, controls or holds twenty five per cent or more of the outstanding voting stock or shares of bo

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eans the liability to pay tax by the recipient of supply of goods or services instead of the supplier of such goods or services in respect of such categories of supplies as notified under sub-section (3) of section 8;
(88) “rules” means the rules made by the Central/State Government under any provision of the Act on the recommendation of the Council;
(89) “schedule” means a schedule appended to this Act;
(90) “securities” shall have meaning assigned to it in sub-section (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(91) “second stage dealer” means a dealer who purchases the goods from a first stage dealer as defined in sub-section (46);
(92) “services'' means anything other than goods;
Explanation 1.- Services include transactions in money 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

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) “non-taxable supply'' means a supply of goods or services which is not chargeable to tax under this Act;
(101) “taxable territory'' means the territory to which the provisions of this Act apply;
(102) “Tax Return Preparer" means any person who has been approved to act as a Tax Return Preparer under the scheme framed under section 43;
(103) “telecommunication service” means service of any description (including electronic mail, voice mail, data services, audio text services, video text services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means;
(104) “time of supply of goods'' shall have the meaning as assigned to it in section 12 ;
(105) “time of supply of services'' shall have the meaning as assigned to it in section 13;
(106) “to cultivate personally” means

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d taxable person excluding taxes, if any charged under the CGST Act, SGST Act and the IGST Act, as the case may be;
Explanation.- Aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis under sub-section (3) of Section 8 and the value of inward supplies.
(108) “usual place of residence” means
(a) in case of an individual, the place where he ordinarily resides;
(b) in other cases, the place where the person, as defined in sub-section (73), is incorporated or otherwise legally constituted;
(109) “valid return” means a return furnished under sub-section (1) of section 34 on which self-assessed tax has been paid in full;
(110) “works contract” means a contract wherein transfer of property in goods is involved in the execution of such contract and includes contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation

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Supplies of goods and/or services in the course of inter-State trade or commerce
Section 3
Bill
PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE COURSE OF INTER – STATE TRADE OR COMMERCE
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
3. Supplies of goods and/or services in the course of inter-State trade or commerce
(1) Subject to the provisions of section 7, supply of goods in the course of inter-State trade or commerce means any supply where the location of the supplier and the place of supply are in different States.
(2) Subject to the provisions of section 9, supply of services in the course of inter-State trade or commerce means any supply where the loc

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Short title, extent and commencement
Section 1
Bill
PRELIMINARY
MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016]
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement
(1) This Act may be called the Central / State Goods and Services Tax Act, 2016.
(2) It extends to the whole of India / State's name.
(3) It shall come into force on such date as the Central or a State Government may, by notification in the Official Gazett

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Definitions
Section 2
Bill
PRELIMINARY
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
2. Definitions
In this Act, unless the context otherwise requires,-
(1) “account” means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account;
(2) “appropriate State”, in relation to a taxable person, means that State where he is registered or liable to be registered under section 23 of the Central Goods and Services Tax Act, 2016.
Explanation: For the purpose of this Act, “State” includes Union Territory with Legislature;
(3) “banking company” has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934);
(4) “customs frontiers of India” means the limits of the area of a customs station as defined in section 2 of the Customs Act, 1962 (52 of 1962) in which imported goods are ordinarily kept before clearance b

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s to supply services, or to receive and use services for its own needs;
(9) “Government” means the Central Government;
(10) “import of goods” with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India;
(11) “import of service” means the supply of any service, where
(a) the supplier of service is located outside India,
(b) the recipient of service is located in India, and
(c) the place of supply of service is in India;
(12) “India” means,-
(a) the territory of the Union as referred to in clauses (2) and (3) of Article 1 of the Constitution;
(b) its territorial waters, continental shelf, exclusive economic zone or any other maritime zone as defined in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976);
(c) the seabed and the subsoil underlying the territorial waters;
(d) the air space above its territory and territorial waters; and
(e) the insta

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services to him and includes the tax payable under sub-section (2) of section 5, but does not include the tax paid under section 9 of the CGST/SGST Act;
(16) “input tax credit” means credit of 'input tax' as defined in sub-section (15);
(17) “location of the recipient of services” means:
(a) where a supply is received at a place of business for which registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment;
(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence of the recipient;
(18) “location of the supplier of services” mea

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ass of such institutions, as the Reserve Bank of India may, with the previous approval of the Central Government and by notification in the Official Gazette specify;
(20) “non-taxable online recipient” means Government, a local authority, a governmental authority, an individual or any person not registered under section 23 of the CGST Act, 2016 receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory;
Explanation: For the purposes of this clause, “governmental authority” means an authority or a board or any other body:
(i) set up by an Act of Parliament or a State legislature; or
(ii) established by Government,
with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;
(21) “online information and database access or retrieval services” means serv

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;
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called;
(23) “special economic zone'' shall have the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(24) “SEZ developer” means a person who, or a State Government which, has been granted by the Central Government a letter of approval under sub-section (10) of section 3 of the Special Economic Zones Act, 2005 (28 of 2005) and includes an Authority and a Co-Developer as defined under section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(25) “State” means
(26) “supply” has the same meaning as assigned to it in section 3 of the CGST Act, 2016;
(27) “tourist” means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes;
(28) “output tax” in relation to a taxable p

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Short title, extent and commencement
Section 1
Bill
PRELIMINARY
MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016]
THE INTEGRATED GOODS AND SERVICES TAX ACT, 2016
CHAPTER- I
PRELIMINARY
1. Short title, extent and commencement
(1) This Act may be called the Integrated Goods and Services Tax Act, 2016.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in th

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New Draft Model GST Law: Key Updates on Tax Rates, Registration, and Input Tax Credit Mechanisms for Streamlined Compliance.

GST
Revised Draft Model GST Law – Section / Chapter Wise
TMI

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Revised IGST Law Updates: Streamlined Tax Processes, Clearer Tax Applicability, and Enhanced Cross-Border Transaction Procedures.

GST
Revised Draft IGST Law – Section / Chapter Wise
TMI

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Draft GST Compensation Law
GST
Dated:- 26-11-2016

Download PDF File
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Document 1
GOODS AND SERVICES TAX (COMPENSATION TO THE
STATES FOR LOSS OF REVENUE) BILL, 2016
(No. of 2016)
[_th
2016]
A Bill to provide for compensation to the States for loss of revenue arising on account of
implementation of the goods and services tax for a period of five years as per Section 18 of The
Constitution (One Hundred and First Amendment) Act, 2016.
BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:-
1.
SHORT TILE AND COMMENCEMENT
(1)
(2)
(3)
This Act may be called the Goods and Services Tax (Compensation to the States for Loss
of Revenue) Act, 2016.
It extends to the whole of India.
It shall come into force on such date as the Central Government may, by notification in
the Official Gazette, appoint in this behalf.
2.
DEFINITIONS
(1)
“base year” shall have the meaning assigned to it in section 4;
(2)
“base year rev

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he rate of growth projected for the transition period as
per section 3;
1
(11) “projected revenue” shall have the meaning assigned to it in section 6;
(12)
“State” shall include Union Territories with Legislature;
(13)
“taxable person” shall have the meaning as assigned to it in the Central Goods and
Services Tax Act, 2016;
(14)
“taxable supply” means a supply of goods and/or services which is chargeable to the
Goods and Services Tax Compensation Cess under this Act;
(15)
“transition date” shall mean, in respect of any State, the date on which the Goods and
Services Tax Act of the concerned state comes into force;
(16) “transition period” means a period of five years from the transition date;
(17) words and expressions used but not defined in this Act and defined in the Central Goods
and Services Tax Act, 2016 (… of 2016), shall have the meanings respectively assigned to them in
that Act, in the context of GST Compensation Cess levied on taxable supplies of go

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ear,
on account of the taxes levied by the respective State or Centre, net of refunds, with respect to
the following taxes imposed by the respective State or Centre, which are subsumed into goods
and services tax:
(a) Value Added Tax (VAT), sales tax, purchase tax, tax collected on works contract, or any
other tax levied by the concerned State under the erstwhile Entry 54 of List-II (State
List) of the Seventh Schedule to the Constitution, prior to bringing into effect the
provisions of the Constitution (One Hundred and First Amendment) Act, 2016;
(b) Central Sales Tax (CST) levied by the Central Sales Tax Act, 1956;
(c) Entry tax, octroi, local body tax or any other tax levied by the concerned State under
the erstwhile Entry 52 of List-II (State List) of the Seventh Schedule to the Constitution,
prior to bringing into effect the provisions of the Constitution (One Hundred and First
Amendment) Act, 2016;
2
(d) Taxes on luxuries, including taxes on entertainments, amusemen

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arlier laws' as per section 2(39) of the State Goods and Services
Act of the concerned State.
(2) The Acts of the Central and State Governments under which the specific taxes are being
subsumed into the goods and services tax shall be as notified.
(3) The revenue collected during the base year in a State, net of refunds, on account of
following taxes, shall not be included in the calculation of the base year revenue for that State:
(4)
(a) Any taxes levied under any Act made under the erstwhile Entry 54 of List-II (State List)
of the Seventh Schedule to the Constitution, prior to bringing into effect the provisions
of the Constitution (One Hundred and First Amendment) Act, 2016, on the sale or
purchase of petroleum crude, high speed diesel, motor spirit (commonly known as
petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption;
(b) Any taxes levied under the Central Sales Tax Act, 1956 (74 of 1956) on the sale or
purchase of petroleum crude,

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ecific entities
under the laws specified under sub-section (2) to promote industrial investment in the State
would be included in the total base year revenue of the State, subject to the conditions as may be
prescribed.
(6)
The base year revenue shall be calculated as per sub-sections (1), (2), (3), (4) and (5) on
the basis of the figures of revenue collected net of refunds given in that year, as audited by the
Comptroller and Auditor General of India.
3
(7)
In respect of any State, if any part of revenues mentioned in sub-sections (1), (2) and (3)
are not credited in the Consolidated Fund of the respective State, the same shall be included in
the total base year revenue of the State, subject to the conditions as may be prescribed.
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.
7.
(1)
Illustration: If the base year revenue for 2015-16 f

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llows:
(a) The projected revenue for any financial year during the transition period, that could
have accrued to a State in the absence of GST, shall be calculated as per section 6.
(b) The actual revenue collected by a State in any financial year during the transition
period would be the actual revenue from State Goods and Services Tax collected by the
State, net of refunds given by the State under Chapter XI of the SGST Act, and the
Integrated Goods 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

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er 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.
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 same shall be adjusted against release of GST
compensation to the State in the subsequent financial year.
(5) Where no compensation is due to be released in any financial year, and in case any
excess amount has been released to a State in the previous year, this amount shal

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n 7(3) of the CGST Act, which may be prescribed on
the recommendations of the Council, for the purposes of providing compensation to the States
for loss of revenue arising on account of implementation of the goods and services tax for a
period of five years, w.e.f. the date from which the CGST Act is brought into force.
Provided that no such cess shall be leviable under this section on supplies made by a
taxable person permitted to opt for composition levy under section 8 of the CGST Act, 2016.
(1)
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 Services Tax Act, 2016, shall pay the amount
payable under the Act in the manner as may be prescribed and apply for refunds of cess paid and
refundable in such form as may be prescribed.
сл
5
(2)
For all

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at the
end of the transition period shall be transferred to the Consolidated Fund of India, and shall be
distributed between the Centre and the States and amongst the States as per provisions of clause
(2) of article 270 of the Constitution; and the balance fifty percent shall be distributed amongst
the States in the ratio of their total revenues from SGST in the last year of the transition period.
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 intra-
state supply of goods and services, as they apply in relation to the levy and collection of Central
Goods and Services Tax on such intra-state supplies under the said

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Revised Draft IGST Law – November 2016
GST
Dated:- 26-11-2016

Download PDF File
News – Press release – PIB

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Revised Draft Model GST Law – November 2016
GST
Dated:- 26-11-2016

Download PDF File
News – Press release – PIB

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ENROLMENT OF EXISTING TAX PAYERS UNDER GST COMMON PORTAL
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 26-11-2016

Enrolment
Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key fields by the taxpayer in the Enrolment Application at the GST Common Portal. There is no deemed enrolment. All the tax payers shall visit the common portal and enroll themselves in the portal for all compliances. No fee is chargeable for such enrolment.
Existing tax payer
An existing taxpayer is an entity currently registered under any State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax Act.
Existing taxpayers include taxpayers already registered under-
* Central Excise
* Service Tax
* State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT)
* Entry Tax
* Luxury Tax
* Entertainment Tax (except levied by the local bodies).
Migration to GST
GSTN shall mig

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JPEG
1 MB
2
Photographs of promoters/partners/Karta of HUF
JPEG
100 KBM
3
Proof of appointment of authorized signatory
PDF or JPEG
1 MB
4
Photograph of authorized signatory
JPEG
100 KB
5
Opening page of pass book/statement containing bank account number, address of branch, address of the account holder and few transaction details.
PDF or JPEG
1 MB
Authorized signatory
The following can be the authorized signatory-
* In case of proprietor – The proprietor or any person authorized by the proprietor;
* In case of partnership – Any authorized partner or any person authorized by the partners;
* In case of Company, LLP, Society or Trust – The person authorized by the Board or Governing body.
In case there is a single Authorized Signatory for a business entity, the single Authorized Signatory will be assumed to be the primary Authorized Signatory. In case there are multiple Authorized Signatories for a single business entity, one Authorized Signatory needs to be des

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on Portal. One can add up to 10 bank accounts while enrolling with GST Common Portal in the Enrolment Application.
Electronically signing
One can submit the Enrolment Application at GST Common Portal without electronically signing it but it is needed to sign the application at a later date within the time allowed under the GST Act. Only signed Enrolment Applications shall be considered for issue of Final Registration Certificate. One can view the submitted application after login by accessing “My Saved Applications” at the GST Common Portal.
Electronically signing the Enrolment Application using DSC is mandatory for enrolment by Companies, Foreign Companies, Limited Liability Partnership (LLPs) and Foreign Limited Liability Partnership (FLLPs). For other taxpayers, electronically signing using DSC is optional.
One cannot submit the Enrolment Application if his DSC is not registered with the GST Common Portal. Therefore, he needs to register his DSC at the GST Common Portal by click

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number.
5. The GST System prompts the taxpayer to enter the OTP.
6. The taxpayer enters the OTP and submits the Enrollment Application or the document. The e-Signing process is completed.
Application Reference Number
Application Reference Number (ARN) is a unique number assigned to each transaction completed at the GST Common Portal. It will also be generated on submission of the Enrolment Application that is electronically signed using DSC. ARN can be used for future correspondence with GSTN. If ARN is not received within 15 minutes of submission of the Enrolment Application, an e-mail will be sent to the applicant with detailed instructions for further course of action.
Rejection of enrolment application
The enrolment application for enrolment under GST can be rejected in case incorrect details have been furnished or uploaded fake or incorrect documents have been attached with the Enrolment Application and the application is electronically signed. However, the applicant taxpa

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ral/State Government may, on the recommendation of the Council, notify.
Provisional ID
The provisional ID issued is 15 digits PAN based number. The first two digits represent the State Code. The next 10 digits represent the PAN of the tax payer. The thirteenth digit represents the entity number of the same PAN holder in a state. The Fourteenth digit represents the alphabet 'Z' by default and the last digit represents – check sum digit.
Certificate of registration
A person, who gets provisional registration shall submit an application electronically in Form GST REG – 21, duly signed along with the information and documents specified in the application on the common portal either directory or through a Facilitation Centre, notified by the Board of Commissioner, within six months. If the information and particulars furnished in the application are found to be correct and complete, the proper officer shall issue a certificate of registration in Form GST REG – 06 and made available to t

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ect of the tax invoices of the services received at the Head Office, to its branches where the services have been supplied actually. Tax invoice refers to the invoice issued under Section 23 of the Model Goods and Services Act. An existing ISD Taxpayer is required to apply afresh in the GST Common Portal for the State in which he desires to seek registration. For that he needs to inform your Central Jurisdictional Authority.
Persons not having IT savvy
In order to cater to the needs of tax payers who are not IT savvy, the following facilities shall be made available-
* Tax Return Preparer – A taxable person may approach the Tax Return preparer for assistance.The TRP will file the required application on the basis of information furnished to him by the taxable person;
* Facilitation Center – It shall be responsible for the digitalization and/or uploading of the forms and documents including summary sheet duly signed by the Authorized Signatory and given to it by the taxable person

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PROPOSED ADMINISTRATION OF GST (PART-I)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 24-11-2016

Considering the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted. On inter-state transactions including imports, integrated GST (IGST) shall be levied and collected in lieu of CGST and SGST.
Both the levels of Government have distinct responsi

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ring natural calamities/disasters, special provisions for certain States, etc.
Its residual entry specifies any other matter relating to GST, as the Council may decide. Also, in terms of clause (6) of the Article 279A, while discharging the functions conferred by article 249A, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services.
Though the role of GST Council shall be recommendatory, its recommendations will carry a weight due to participation of centre and all states. According to the proposed administrative model, GST Council and proposed Central Board of Indirect Taxes shall work closely at the helm for administration of GST in India.
Based on proposed model of organization under GST, following changes are expected –
* The administration structure post GST would be based on the principle of pooled sovereignty, mutual co-operation, cross

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trade as well. The traditional division structure of scrutiny should be replaced with audit and scrutiny. There shall be mutual exchange of intelligence and joint audit if agreed by the state.
* There shall be a working arrangement wherein if the issue has monetary implication of ₹ 5 Lakhs or the amount as fixed by the GST Council , and if the issue is non-recurrent for the assessee, then the decision of the Commissioner Appeals in such cases should be accepted even if it is not in favour of the department and with the no precedence value.
* This exercise will also result in re-distribution of manpower and further this re-distribution shall be done in most transparent manner keeping in view of the talent, potential and skill sets of the staff.
* With this exercise, the infrastructure and vehicle issue to be re-considered in a fresh perspective rather than a traditional "penny wise pound foolish attitude"
* The reason for making the Regional head as the cadre co

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or more members. The number of members would be flexible. In addition to Additional Secretary Revenue, as Member Secretary of GSTC, Member GST shall also be the Member Secretary to the GST Council for CGST and IGST related issues. Board through Member-GST may be the think tank to assist the Council in policy formulation in CGST and IGST matters.
The members may have different portfolios such as –
* Member, GST (Secretary, GST Council )
* Member, Customs
* Member, (IT, Policy & Infra)
* Member, Central Excise & Legacy Issues
* Member, P & V, Training
* Member, (P & J, Audit)
Member (GST) will also act as Secretary to GST Council. Principal Chief Commissioners / DGITI or Anti-Evasion Directorate / Principal Secretaries of States may report to Member (GST). Member GST interaction with Principal Secretaries of States would be purely for operational requirements such as reports, data collection, joint action, pre-consultation for GST Council meeting etc. It is expected that i

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Registration Rgarding
Query (Issue) Started By: – Swapneswar muduli Dated:- 24-11-2016 Last Reply Date:- 25-11-2016 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Sir,
As registration for GST has been started in various states i have some doubts Regarding this.
We have 5 manufacturing unit in our state that it Daman and Due and our Other manufacturing Unit are at Gujarat and Uttarakhand.
As our 5 units in Daman due than we got only one provisional User ID and pass word from Vat Department.
So my query is whether we need to register in GST five our units separately or for five units one registration is ok under GST ?
Regards
Swapneswar Muduli.
Reply By Jayaram Yarram:
The Reply:
Hi Swapneswar,
For units in one stat

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GST Council Meeting rescheduled on 2nd-3rd December, 2016
GST
Dated:- 23-11-2016

Three draft GST related Laws – Model Goods & Service Tax; Integrated Goods and Service Tax (IGST) and Goods & Service Tax (Compensation to the States for loss of Revenue) were discussed at length for two days on 21st – 22nd November, 2016 in the Officers' Level Meeting of the States and Centre held in national capital. Number of issues were resolved during the two day meeting. However, the States desir

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NO CONSENSUS ON GST ADMINISTRATION
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 23-11-2016

GST may suffer at the cost of recent demonetization of high vale currency announced by the Government which came just before the scheduled winter session of Parliament from 16th November, 2016.
To oppose demonetization, almost entire opposition has united to corner and question the Government. We have already witnessed loss of first week in the four week current session.
The trailer came yesterday with the informal meeting of all Finance Ministers of states and union ending in just two hours on Sunday without any result or positive conclusion. Not only this, the two day meeting of the GST Council scheduled for 24-25

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is concerned, there are two options being discussed now. The GST Council was earlier discussing five proposals for deciding on jurisdiction, but in the last meeting on November 4, arrived at two options – horizontal division and vertical division. 'Horizontal Division' would mean taxpayers would be divided both for administrative and audit purposes based on a cut off turnover. Those with a turnover over ₹ 1.5 crore would be administered both by the Centre and states, while those with below ₹ 1.5 crore would be administered solely by the State. 'Vertical Division', based on ratios, assigns taxpayers to a tax administration, Centre or State, for a period of three years for all purposes, including audit.
It is lea

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in GST coming in April, 2017 and their major concern and attention may be to address fall out of demonetization. These parties may be impacted but they are opposing it in the guise of inconvenience and hardship to poor and common people.
It appears that chances of GST roll out from April, 2017 seems to be bleak as Government struggles with demonetization's political fallout. With the present opposition, any talks on GST may be futile. If not April, then let's hope for September, 2017 which is the ultimate dead line. Better late than never. By then, effect of demonetization will also stabilize.
Reply By Ganeshan Kalyani as =
Sir , is there any possibility during budget session.
Dated: 24-11-2016
Scholarly articles for knowle

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DEMAND UNDER MODEL GST LAW
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 23-11-2016

Chapter XIV of the Model Goods and Services Tax Act, 2016 (Act' for short) provides for the demands and recovery of tax. When a demand can be raised by the Government? The tax is payable on self assessment basis. If the assessee pays the tax on self assessment correctly there will be no problem. If there is any short payment or wrong availment of credit then the Department will initiate action against the assessee to demand and recover the same through due process of law.
The Act provides three circumstances for the determination of tax-
* Determination of tax not paid or short paid or erroneously refunded – Section 51;
* Tax collected but not deposited with the Central Government or State Government – Section 52;
Determination of tax under Section 51
Section 51 provides two circumstances under which the demand can be raised-
* Determination of tax not pai

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r period, the proper officer is not required to issue show cause notice. Instead he may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for such periods other than those covered in the preceding para;
* The service of such statement shall be deemed to be service of notice on such person subject to the condition that the grounds relied upon for such tax periods are the same as are mentioned in the earlier notice;
* If the person on whom notice is issued, pays the amount of tax along with interest on the basis of his own ascertainment or as the tax as ascertained by the proper officer before the issue of show cause notice and inform the officer in writing of such payment. The proper officer, on receipt of information, shall not serve any notice or statement;
* If the amount paid by the person as above, falls short of the amount actually payable, the proper officer shall proceed to issue

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e procedure for determination of tax is as follows-
* The proper officer shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made or who has wrongly availed or utilized input tax credit, by reason of fraud or any willful mis statement or suppression of facts to evade tax, requiring him to show cause why he should not pay the amount specified in the notice along with interest payable and a penalty equivalent to the tax specified in the notice;
* If there is a continuation of default as stated above for further period, the proper officer is not required to issue show cause notice. Instead he may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for such periods other than those covered in the preceding para;
* If the person pays the amount of tax along with interest payable and a penalty

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e said order is to be issued within a period of five years from the due date or the actual date whichever is earlier, for filing of annual return for the year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates or, as the case may be, within 5 years from the date of erroneous refund;
* If the person pays the tax along with interest payable and a penalty equivalent to 50% of the such tax within 30 days of the date of communication of the order, all proceedings in respect of the said tax shall be deemed to be concluded.
General provisions relating to demand of tax
Section 51C prescribes the procedure relating to demand of tax as detailed below-
* If the service of notice or order is stayed by an order of a Court or Tribunal, the period of such stay shall be excluded in computing the period of three or five years;
* If any Appellate Authority or Tribunal or Court concludes that the notice is not sustainable for the reason that the charge

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y the proper officer, the amount of interest and penalty shall stand modified accordingly, taking into account the amount of tax so modified;
* Interest on the tax short paid or not paid shall be payable whether or not specified in the order determining the tax liability;
* The adjudication proceedings shall be deemed to be concluded if the order is not issued within three years or as the case may be within five years;
* The above said provisions shall be application to the recovery of interest which has not been paid or partly paid or erroneously refunded.
Tax collected but not deposited with the Central or a State Government
Section 52(1) provides that every person who has collected from any other person any amount as representing tax and has not paid the same to the Central Government or a State Government, shall forthwith deposit the same to the credit of the Central or a State Government, regardless of whether the supplies in respect of which such amount was collected are

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.
Section 51(6) provides that the proper officer shall issue an order within one year from the date of issue of the notice.
Section 51(7) provides that where the issuance of order is stayed by an order the Court or the Tribunal the period of such stay shall be excluded in computing the period one year.
Section 51(8) provides that the proper officer, in his order, shall set out the relevant facts and the basis of the decision;
Section 51(9) provides that the amount paid to the credit of the Central or the State Government shall be adjusted against the tax payable, if any, by the person in relation to the supplies.
Section 51(10) provides that where any surplus is left after the adjustment the same shall either be credit to the Fund or refunded to the person, who has borne the incidence of such amount.
Section 51(11) provides that the person who has borne the incident of tax amount may apply for the refund of the same.
Tax wrongfully collected and deposited
Section 52 provides th

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DECLARED SERVICES & GST
By: – DR.MARIAPPAN GOVINDARAJAN
Service Tax
Dated:- 22-11-2016

The Finance Act, 1994 covers nearly 120 services in the service tax net up to the year 2012 during which negative list was introduced. As such all services except the services in the negative list and in the mega exemption list are liable for the levy of service tax. However, there are certain activities which are difficult to determine whether such activities would be classified as a service or not. Therefore the Government while introducing the negative list inserted a section in which certain services are declared as 'declared services'. It is the deeming fiction of law. It provides the lawmakers to declare any service as 'declared service'.
Section 65B(22) of the Finance Act,1994 defines the term 'declared service' as any activity carried out by a person for another person for consideration and declared as such under Section 66E.
Section 66E provides that the following shall co

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the expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual property right;
* development, design, programming, customization, adaptation, up gradation, enhancement, implementation of information technology software;
* agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act;
* transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;
* activities in relation to delivery of goods on hire purchase or any system of payment by installments;
* service portion in the execution of a works contract;
* service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity;
* assignment by the Governm

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nsideration and whether or not in the course of furtherance of business; and
* a supply specified in Schedule I, made or agreed to be made without a consideration;
Section 3(2) provides that Schedules in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services.
In Schedule II of Model GST Act, 2016, almost all the declared services in Section 66E of the Finance Act are found place, except the following-
* transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods;
* assignment by the Government of the right to use the radio-frequency spectrum and subsequent transfers thereof.(introduced with effect from 14.05.2016).
Point 5 in Schedule II provides that the following shall be treated as 'supply of service'-
* renting of immovable property;
* construction of a complex, building, civil structure or a part thereof, including a complex

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re;
(c) temporary transfer or permitting the use or employment of any intellectual property right;
* development, design, programming, customization, adaptation, up gradation, enhancement, implementation of information technology services;
* agreeing to the obligation to refrain from an act, or to tolerate an act or a situation or to do an act;
* works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
* transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; and
* supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption) where such supply or service is for cash, deferred payment or other valuable consideration.
Scholarly articles for knowledge

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Cabinet Secretary Shri P.K. Sinha: Goods and Services Tax (GST) is an important milestone in the concept of cooperative federalism where the Centre and the States have come together to address an important national issue of complex indirect tax regime in the country; Successful implementation of GST can lead to this model of cooperative federalism being replicated in other spheres
GST
Dated:- 19-11-2016

The Cabinet Secretary Shri Pradeep Kumar Sinha said that Goods and Services Tax (GST) is an important milestone in the concept of cooperative federalism where the Centre and the States have come together to address an important national issue of present complex indirect tax regime in the country. He said that the successful imp

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