Author: admin_gst

GST – PAYMENT OF TAX – Draft Rules 31-3-2017
GST
Dated:- 2-4-2017

GST – PAYMENT OF TAX – Draft Rules 31-3-2017
=============
Document 1
(1)
Chapter
PAYMENT OF TAX
1. Electronic Tax Liability Register
The electronic tax liability register specified under sub-section (7) of section 49 shall
be maintained in FORM GST PMT-01 for each person liable to pay tax, interest, penalty, late
fee or any other amount on the Common Portal and all amounts payable by him shall be debited
to the said register.
(2)
(3)
The electronic tax liability register of the person shall be debited by:-
(a)
the amount payable towards tax, interest, late fee or any other amount payable
as per the return furnished by the said person;
(b)
the amount of tax, interest, penalty or any other amount payable as determined
by a proper officer in pursuance of any proceedings under the Act or as ascertained by
the said person;
(c) the amount of tax and interest payable as a result of mismatch und

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ash ledger maintained as per rule 3 and the electronic tax liability register shall be credited
accordingly.
(5)
Any amount of demand debited in the electronic tax liability register shall stand reduced
to the extent of relief given by the appellate authority or Appellate Tribunal or court and the
electronic tax liability register shall be credited accordingly.
(6) The amount of penalty imposed or liable to be imposed shall stand reduced partly or
fully, as the case may be, if the taxable person makes the payment of tax, interest and penalty
specified in the show cause notice or demand order and the electronic tax liability register shall
be credited accordingly.
2.
(1)
Electronic Credit Ledger
The electronic credit ledger shall be maintained in FORM GST PMT-02 for each
registered person eligible for input tax credit under the Act on the Common Portal and every
claim of input tax credit under the Act shall be credited to the said Ledger.
(2) The electronic credit ledger

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ed to be rejected, if the appeal
is finally rejected or if the claimant gives an undertaking to the proper officer that he shall not
file an appeal.
3.
(1)
Electronic Cash Ledger
The electronic cash ledger under sub-section (1) of section 49 shall be maintained in
FORM GST PMT-05 for each person, liable to pay tax, interest, penalty, late fee or any other
amount, on the Common Portal for crediting the amount deposited and debiting the payment
therefrom towards tax, interest, penalty, fee or any other amount.
(2)
Any person, or a person on his behalf, shall generate a challan in FORM GST PMT-
06 on the Common Portal and enter the details of the amount to be deposited by him towards
tax, interest, penalty, fees or any other amount.
(3) The deposit under sub-rule (2) shall be made through any of the following modes:
(i)
(ii)
(iii)
Internet Banking through authorized banks;
Credit card or Debit card through the authorised bank;
National Electronic Fund Transfer (NEFT) o

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Portal
shall be valid for a period of fifteen days.
Explanation.– For making payment of any amount indicated in the challan, the commission, if
any, payable in respect of such payment shall be borne by the person making such payment.
(4) Any payment required to be made by a person who is not registered under the Act, shall
be made on the basis of a temporary identification number generated through the Common
Portal.
(5) Where the payment is made by way of NeFT or RTGS mode from any bank, the
mandate form shall be generated along with the challan on the Common Portal and the same
shall be submitted to the bank from where the payment is to be made:
Provided that the mandate form shall be valid for a period of fifteen days from the date of
generation of challan.
(6) On successful credit of the amount to the concerned government account maintained in
the authorised bank, a Challan Identification Number (CIN) will be generated by the collecting
Bank and the same shall

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imed refund of any amount from the electronic cash ledger, the
said amount shall be debited to the electronic cash ledger.
(11) If the refund so claimed is rejected, either fully or partly, the amount debited under sub-
rule (10), to the extent of rejection, shall be credited to the electronic cash ledger by the proper
officer by an order made in FORM GST PMT-03.
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Explanation.- For the purposes of this rule, a refund shall be deemed to be rejected if the appeal
is finally rejected or if the claimant gives an undertaking to the proper officer that he shall not
file an appeal.
4. Identification number for each transaction
(1)
A unique identification number shall be generated at the Common Portal for each debit
or credit to the electronic cash or credit ledger, as the case may be.
(2)
The unique identification number relating to discharge of any liability shall be indicated
in the corresponding entry in the electronic tax liability register.
(3)
A unique identification n

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GST – TAX INVOICE, CREDIT AND DEBIT NOTES – Draft Rules 31-3-2017
GST
Dated:- 2-4-2017

GST – TAX INVOICE, CREDIT AND DEBIT NOTES – Draft Rules 31-3-2017
 
=============
Document 1
1.
Tax invoice
Chapter-
TAX INVOICE, CREDIT AND DEBIT NOTES
Subject to rule 7, a tax invoice referred to in section 31 shall be issued by the registered person
containing the following particulars:-
(a) name, address and GSTIN of the supplier;
(b)
a consecutive serial number, in one or multiple series, containing alphabets or numerals or
special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any
combination thereof, unique for a financial year;
(c)
date of its issue;
(d)
name, address and GSTIN or UIN, if registered, of the recipient;
(e)
name and address of the recipient and the address of delivery, along with the name of State
and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand
rupees

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l, by notification,
specify –
(i)
the number of digits of HSN code for goods or the Accounting Code for services, that a class
of registered persons shall be required to mention, for such period as may be specified in the said
notification, and
(ii)
the class of registered persons that would not be required to mention the HSN code for goods
or the Accounting Code for services, for such period as may be specified in the said notification:
Provided further that in case of exports of goods or services, the invoice shall carry an endorsement
“SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT
UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST”, as the case may be,
and shall, in lieu of the details specified in clause (e), contain the following details:
(i) name and address of the recipient;
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(ii) address of delivery;
(iii) name of the country of destination; and
(iv) number and date of application for removal of goods for export:
Provi

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a financial
institution, including a non-banking financial company, or a telecom operator, or any other class of supplier
of services as may be notified by the Government on the recommendations of the Council, making taxable
supplies of services between distinct persons as specified in section 25 as referred to in Entry 2 of Schedule
I, may issue the invoice before or at the time such supplier records the same in his books of account or before
the expiry of the quarter during which the supply was made.
Manner of issuing invoice
The invoice shall be prepared in triplicate, in case of supply of goods, in the following manner:—
3.
(1)
(a)
the original copy being marked as ORIGINAL FOR RECIPIENT;
(b)
the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
(c)
the triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
(2)
The invoice shall be prepared in duplicate, in case of supply of services, in the following manner:-
(a)
the original copy being mar

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g into account discount or abatement, if
signature or digital signature of the supplier or his authorized representative:
Provided that the provisos to rule 1 shall., mutatis mutandis, apply to the bill of supply issued under
5. Receipt voucher
A receipt voucher referred to in clause (d) of sub-section (3) of section 31 shall contain the following
particulars:
(a) name, address and GSTIN of the supplier;
(b)
a consecutive serial number containing alphabets or numerals or special characters -hyphen
or dash and slash symbolised as “-” and “/”respectively, and any combination thereof, unique for a
financial year
(c)
date of its issue;
(d)
name, address and GSTIN or UIN, if registered, of the recipient;
(e)
description of goods or services;
(f)
amount of advance taken;
rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated
tax,

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cipient;
(g) name and address of the recipient and the address of delivery, along with the name of State and
its code, if such recipient is un-registered;
(h) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;
(i) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or,
as the case may be, debited to the recipient; and
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(2)
(j) signature or digital signature of the supplier or his authorized representative:
Every registered person who has been granted registration with effect from a date earlier than the
date of issuance of certificate of registration to him, may issue revised tax invoices in respect of taxable
supplies effected during the period starting from the effective date of registration till the date of issuance of
certificate of registration:
Provided that the registered person may issue a consolidated revised tax invoice in respect of all
taxable supplies made to a recipient wh

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nation thereof, unique for a
financial year;
address and GSTIN of the recipient to whom the credit is distributed;
(c)
date of its issue;
(d)
name,
(e)
(f)
amount of the credit distributed; and
signature or digital signature of the Input Service Distributor or his authorized representative:
Provided that where the Input Service Distributor is an office of a banking company or a financial institution,
including a non-banking financial company, a tax invoice shall include any document in lieu thereof, by
whatever name called, whether or not serially numbered but containing the information as prescribed above.
Where the supplier of taxable service is an insurer or a banking company or a financial institution,
including a non-banking financial company, the said supplier shall issue a tax invoice or any other document
in lieu thereof, by whatever name called, whether or not serially numbered, and whether or not containing the
address of the recipient of taxable service but

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service but containing other information as prescribed under
rule 1.
8. Transportation of goods without issue of invoice
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For the purposes of
(1)
(a)
supply of liquid gas where the quantity at the time of removal from the place of business of
the supplier is not known,
(b)
(c)
(d)
transportation of goods for job work,
transportation of goods for reasons other than by way of supply, or
such other supplies as may be notified by the Board,
the consigner may issue a delivery challan, serially numbered, in lieu of invoice at the time of removal of
goods for transportation, containing following details:
(i)
date and number of the delivery challan,
(ii)
name, address and GSTIN of the consigner, if registered,
(iii)
name, address and GSTIN or UIN of the consignee, if registered,
(iv)
HSN code and description of goods,
(v)
(2)
(vi)
(vii)
quantity (provisional, where the exact quantity being supplied is not known),
taxable value,
tax rate and tax amount – central

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GST – Input Tax Credit – Draft Rules 31-3-2017
GST
Dated:- 2-4-2017

GST – Input Tax Credit – Draft Rules 31-3-2017
 
=============
Document 1
CHAPTER-
Input Tax Credit
1.
(1)
Documentary requirements and conditions for claiming input tax credit
The input tax credit shall be availed by a registered person, including the Input Service
Distributor, on the basis of any of the following documents, namely:-
(2)
(a)
(b)
(c)
(d)
(e)
(f)
an invoice issued by the supplier of goods or services or both in accordance with
the provisions of section 31;
a debit note issued by a supplier in accordance with the provisions of section 34;
a bill of entry;
an invoice issued in accordance with the provisions of clause (f) of sub-section (3)
of section 31;
a document issued by an Input Service Distributor in accordance with the
provisions of sub-rule (1) of rule invoice.7;
a document issued by an Input Service Distributor, as prescribed in clause (g) of
sub-rule (

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d
of in FORM GSTR-2 for the month immediately following the period of one hundred and
eighty days from the date of issue of invoice.
(2) The amount of input tax credit referred to in sub-rule (1) shall be added to the output tax
liability of the registered person for the month in which the details are furnished.
(3) The registered person shall be liable to pay interest at the rate notified under sub-section (1)
of section 50 for the period starting from the date of availing credit on such supplies till the
date when the amount added to the output tax liability, as mentioned in sub-rule (2), is paid.
3. Claim of credit by a banking company or a financial institution
A banking company or a financial institution, including a non-banking financial company,
engaged in supply of services by way of accepting deposits or extending loans or advances that
chooses not to comply with the provisions of sub-section (2) of section 17, in accordance with
the option permitted under sub-sect

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or shall distribute input tax credit in the manner and subject
to the conditions specified below-
(a) the input tax credit available for distribution in a month shall be distributed in
the same month and the details thereof shall be furnished in FORM GSTR-6 in
accordance with the provisions of Chapter – (Return Rules);
–
(b) the Input Service Distributor shall, in accordance with the provisions of clause
(d), separately distribute the amount in-eligible as input tax credit under the provisions
of sub-section (5) of section 17 and the amount eligible as input tax credit;
(c) the input tax credit on account of central tax, State tax, Union territory tax and
integrated tax shall be distributed separately in accordance with the provisions of clause
(d);
(d) the input tax credit that is required to be distributed in accordance with the
provisions of clause (d) and (e) of sub-section (2) of section 20 to one of the recipients
'Ri', whether registered or not, from amongst the to

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in a State other than that of the Input Service
Distributor, be distributed as integrated tax and the amount to be so distributed
shall be equal to the aggregate of the amount of input tax credit of central tax and
State tax that qualifies for distribution to such recipient in accordance with clause
(d);
(g) The Input Service Distributor shall issue an ISD invoice, as prescribed in sub-rule (1)
of rule invoice-7, clearly indicating in such invoice that it is issued only for distribution
of input tax credit.
(h) The Input Service Distributor shall issue an ISD credit note, as prescribed in sub-rule
(1) of rule Invoice-7, for reduction of credit in case the input tax credit already distributed
gets reduced for any reason.
(i) Any additional amount of input tax credit on account of issuance of a debit note to an
Input Service Distributor by the supplier shall be distributed in the manner and subject to
the conditions specified in clauses (a) to (g) and the amount attributable

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other reason for any of the recipients, including that it was distributed to a
wrong recipient by the Input Service Distributor, the process prescribed in clause (j) of
sub-rule (1) shall, mutatis mutandis apply for reduction of credit.
(3) Subject to sub-rule (2), the Input Service Distributor shall, on the basis of the ISD credit
note specified in clause (h) of sub-rule (1), issue an ISD Invoice to the recipient entitled to such
credit and include the ISD credit note and the ISD Invoice in the return in FORM GSTR-6 for
the month in which such credit note and invoice was issued.
5.
Manner of claiming credit in special circumstances
(1) Input tax credit claimed in accordance with the provisions of sub-section (1) of section 18
on the inputs lying in stock or inputs contained in semi-finished or finished goods lying in
stock, or the credit claimed on capital goods in accordance with the provisions of clauses (c)
and (d) of the said sub-section, shall be subject to the follo

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e becomes liable to pay
tax under the provisions of this Act, in the case of a claim under clause (a) of sub-
section (1) of Section 18,
on the day immediately preceding the date of grant of registration, in the case of a
claim under clause (b) of sub-section (1) of Section 18,
on the day immediately preceding the date from which he becomes liable to pay
tax under section 9, in the case of a claim under clause (c) of sub-section (1) of
Section 18,
on the day immediately preceding the date from which supplies made by the
registered person becomes taxable, in the case of a claim under clause (d) of sub-
section (1) of Section 18.
(d) The details furnished in the declaration under clause (c) shall be duly certified by a
practicing chartered account or cost accountant if the aggregate value of claim on account
of central tax, State tax and integrated tax exceeds two lakh rupees.
(e) The input tax credit claimed in accordance with clauses (c) and (d) of sub-section (1) of
sec

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rger, de-merger, amalgamation, lease or
transfer of business has been done with a specific provision for transfer of liabilities.
(3) The transferee shall, on the Common Portal, accept the details so furnished by the transferor
and, upon such acceptance, the un-utilized credit specified in FORM GST ITC-02 shall be
credited to his electronic credit ledger.
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(4) The inputs and capital goods so transferred shall be duly accounted for by the transferee in
his books of account.
7. Manner of determination of input tax credit in certain cases and reversal thereof
(1) The input tax credit in respect of inputs or input services, which attract the provisions of
sub-sections (1) or (2) of section 17, being partly used for the purposes of business and partly
for other purposes, or partly used for effecting taxable supplies including zero rated supplies
and partly for effecting exempted supplies, shall be attributed to the purposes of business or for
effecting taxable supplies in the

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'T4';
(g) ‘T₁', 'Tâ‚‚', 'T3' and ‘T4' shall be determined and declared by the registered person at the
invoice level in FORM GSTR-2;
(h) Input tax credit left after attribution of input tax credit under clause (g) shall be called
common credit, be denoted as ‘C2' and calculated as:
C2=C1- T4;
(i) The amount of input tax credit attributable towards exempt supplies, be denoted as ‘D₁' and
calculated as:
where,
D1= (E÷F) × C2
'E' is the aggregate value of exempt supplies, that is, all supplies other than taxable and zero
rated supplies, during the tax period, and
'F' is the total turnover of the registered person during the tax period:
Provided that where the registered person does not have any turnover during the said tax period
or the aforesaid information is not available, the value of ‘E/F' shall calculated by taking values
of 'E' and 'F' of the last tax period for which details of such turnover are available, previ

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qual to ‘D₁' and 'D2' shall be added to the output tax liability of the registered
person:
Provided that if the amount of input tax relating to inputs or input services which have been
used partly for purposes other than business and partly for effecting exempt supplies has been
identified and segregated at invoice level by the registered person, the same shall be included
in ‘T₁ and ‘Tâ‚‚' respectively, and the remaining amount of credit on such input or input services
shall be included in 'T4'.
(2) The input tax credit determined under sub-rule (1) shall be calculated finally for the
financial year before the due date for filing the return for the month of September following
the end of the financial year to which such credit relates, in the manner prescribed in the said
sub-rule and,
(a) where the aggregate of the amounts calculated finally in respect of ‘D₁' and 'D2' exceeds
the aggregate of the amounts determined under sub

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certain cases
(1) Subject to the provisions of sub-section (3) of section 16, the input tax credit in respect of
capital goods, which attract the provisions of sub-sections (1) and (2) of section 17, being partly
used for the purposes of business and partly for other purposes, or partly used for effecting
taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be
attributed to the purposes of business or for effecting taxable supplies in the following manner,
namely,-
(a) the amount of input tax in respect of capital goods used or intended to be used
exclusively for non-business purposes or used or intended to be used exclusively for
effecting exempt supplies shall be indicated in FORM GSTR-2 and shall not be credited
to his electronic credit ledger;
(b) the amount of input tax in respect of capital goods used or intended to be used
exclusively for effecting taxable supplies including zero-rated supplies shall be indicated
in FORM GST

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he rate
of five percentage points for every quarter or part thereof shall be added to the aggregate
value 'T.';
(e) the amount of input tax credit attributable to a tax period on common capital goods
during their residual life, be denoted as 'Tm' and calculated as:-
Tm= Te÷60
(f) the amount of input tax credit, at the beginning of a tax period, on all common
capital goods whose residual life remains during the tax period, be denoted as 'Tr'
and shall be the aggregate of ‘Tm' for all such capital goods.
(g) the amount of common credit attributable towards exempted supplies, be denoted
as 'Te', and calculated as:
Te= (E÷F) x Tr
where,
'E' is the aggregate value of exempt supplies, that is, all supplies other than taxable and zero
rated supplies, during the tax period, and
'F' is the total turnover of the registered person during the tax period:
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Provided that where the registered person does not have any turnover during the said tax period
or the aforesaid

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contained in semi-
finished and finished goods lying in stock, and capital goods lying in stock, for the purposes of
sub-section (4) of section 18 or sub-section (5) of 29, shall be determined in the following
manner namely,-
(a) For inputs lying in stock, and inputs contained in semi-finished and finished goods
lying in stock, the input tax credit shall be calculated proportionately on the basis of
corresponding invoices on which credit had been availed by the registered taxable
person on such input.
(b) For capital goods lying in stock the input tax credit involved in the remaining residual
life in months shall be computed on pro-rata basis, taking the residual life as five years;
Illustration
Capital goods have been in use for 4 years, 6 month and 15 days.
The residual remaining life in months = 5 months ignoring a part of the month
Input tax credit taken on such capital goods=Ç
Input tax credit attributable to remaining residual life=C multiplied by 5/60
(2) The

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allan
issued by the principal, including where the inputs or capital goods are sent directly to job-
worker.
(2)
The challan issued by the principal to the job worker shall contain the details specified
in rule Invoice.8:
(3) The details of challans in respect of goods dispatched to a job worker or received from a
job worker during a tax period shall be included in FORM GSTR-1 furnished for that period.
(4) If the inputs or capital goods are not returned to the principal within the time stipulated in
section 143, the challan issued under sub-rule (1) shall be deemed to be an invoice for the
purposes of this Act.
Explanation.- For the purposes of this Chapter,-
(1) “capital goods” shall include “plant and machinery” as defined in the Explanation to section
17;
(2) for determining the value of an exempt supply as referred to in sub-section (3) of section
17:-
(a) the value of land and building shall be taken as the same as adopted for the purpose of
paying st

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GST – TRANSITIONAL PROVISIONS – Draft Rules 31-3-2017
GST
Dated:- 2-4-2017

GST – TRANSITIONAL PROVISIONS – Draft Rules 31-3-2017
=============
Document 1CHAPTER-
TRANSITIONAL PROVISIONS
1. Application in respect of tax or duty credit carried forward under any existing law or
on goods held in stock on the appointed day
(1) Every registered person entitled to take credit of input tax under section 140 shall, within
sixty days of the appointed day, submit an application electronically in FORM GST TRAN-
1, duly signed, on the Common Portal specifying therein, separately, the amount of tax or duty
to the credit of which the said person is entitled under the provisions of the said section:
Provided that where the inputs have been received from an Export Oriented Unit or a unit
located in Electronic Hardware Technology Park, the credit shall be allowed to the extent as
provided in sub-rule (7) of rule 3 of the CENVAT Credit Rules, 2004:
[this proviso only in CGST rules]
Provide

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the existing laws till the appointed day, and
(ii) the amount of duty or tax yet to be availed or utilized by way of input tax credit
under each of the existing laws till the appointed day;
(b) in the case of a claim under sub-section (3), or the proviso thereto, or clause (b) of sub-
section (4), sub-section (6), sub-section (8), sub-section (9) of Section 140 shall specify
separately details of stock held on the appointed day;
(c) in the case of a claim under sub-section (5), shall furnish the following details—
(i) the name of the supplier, serial number and date of issue of the invoice by the
supplier or any document on the basis of which credit of input tax was admissible
under the existing law,
(ii) the description, quantity and value of the goods or services
(iii) the amount of eligible taxes and duties or, as the case may be, the value added tax
[or entry tax] charged by the supplier in respect of the goods or services,
(iv) the date on which the receipt of goods or ser

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urement of such goods is available with the registered person.
(iii) Registered person availing this scheme and having furnished the details of stock held by
him in accordance with the provisions of clause (b) of sub-rule (2) of rule 1, submits a statement
in FORM GST TRAN at the end of each of the six tax periods during which the scheme is
in operation indicating therein the details of supplies of such goods effected during the tax
period.
(iv) The amount of credit allowed shall be credited to the electronic credit ledger of the
applicant maintained in FORM GST PMT-2 on the Common Portal.
(v) The stock of goods on which the credit is availed is so stored that it can be easily identified
by the registered person.
(In CGST Rules)
(3) (a) (i) A registered person, holding stock of goods which have suffered tax at the first
point of their sale in the State and the subsequent sales of which are not subject to tax in the
State availing credit in accordance with the proviso to sub-section (3)

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of each of the six tax periods during which the
scheme is in operation indicating therein the details of supplies of such goods effected during
the tax period.
(iv) The amount of credit allowed shall be credited to the electronic credit ledger of the
applicant maintained in FORM GST PMT-2 on the Common Portal.
(v) The stock of goods on which the credit is availed is so stored that it can be easily identified
by the registered person.
(4) The amount of credit specified in the application in FORM GST TRAN-1 shall be
credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on
the Common Portal.
(In SGST Rules of States offering tax on MRP scheme)
(4) The amount of credit specified in the application in FORM GST TRAN-1 shall be credited
to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the
Common Portal.
2. Declaration of stock held by a principal
Every person to whom the provisions of section 141 apply shall, within sixty days o

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GST – Determination of Value of Supply – Draft Rules 31-3-2017
GST
Dated:- 2-4-2017

GST -Determination of Value of Supply – Draft Rules 31-3-2017
 
=============
Document 1
Chapter
Determination of Value of Supply
1. Value of supply of goods or services where the consideration is not wholly in money
Where the supply of goods or services is for a consideration not wholly in money, the value of the supply
shall,
(a)
be the open market value of such supply;
(b)
(c)
(d)
Illustration:
(1)
if open market value is not available, be the sum total of consideration in money and any
such further amount in money as is equivalent to the consideration not in money if such
amount is known at the time of supply;
if the value of supply is not determinable under clause (a) or clause (b), be the value of
supply of goods or services or both of like kind and quality;
if value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of
conside

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t, shall,-
(a)
be the open market value of such supply;
(b)
if open market value is not available, be the value of supply of goods or services of like kind
and quality;
(c)
if value is not determinable under clause (a) or (b), be the value as determined by application of
rule 4 or rule 5, in that order:
Provided where the recipient is eligible for full input tax credit, the value declared in the invoice shall be
deemed to be the open market value of goods or services.
3. Value of supply of goods made or received through an agent
The value of supply of goods between the principal and his agent shall,-
(a)
be the open market value of the goods being supplied, or at the option of the supplier, be
ninety percent of the price charged for the supply of goods of like kind and quality by the
recipient to his customer not being a related person, where the goods are intended for
further supply by the said recipient;
Illustration: Where a principal supplies groundnut to his agen

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pply of goods or services or both
Where the value of supply of goods or services or both cannot be determined under rules 1 to 4, the
same shall be determined using reasonable means consistent with the principles and general provisions of
section 15 and these rules:
Provided that in case of supply of services, the supplier may opt for this rule, disregarding rule 4.
6. Determination of value in respect of certain supplies
(1)
Notwithstanding anything contained in the Act or in these rules, the value in respect of supplies
specified below shall be determined in the manner provided hereinafter.
(2) The value of supply of services in relation to purchase or sale of foreign currency, including money
changing, shall be determined by the supplier of service in the following manner:-
(a) For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the
difference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of Indi

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ent. of the gross amount of currency exchanged for an amount up to one lakh rupees,
subject to a minimum amount of two hundred and fifty rupees;
(ii) one thousand rupees and half of a per cent. of the gross amount of currency exchanged for an
amount exceeding one lakh rupees and up to ten lakh rupees; and
(iii) five thousand rupees and one tenth of a per cent. of the gross amount of currency exchanged
for an amount exceeding ten lakh rupees, subject to maximum amount of sixty thousand rupees.
(3) The value of supply of services in relation to booking of tickets for travel by air provided by an air
travel agent, shall be deemed to be an amount calculated at the rate of five percent. of the basic fare in the
case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international
bookings of passage for travel by air.
Explanation – For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare
on whi

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d goods as such or after such minor processing which does not change the nature of the goods and where
no input tax credit has been availed on purchase of such goods, the value of supply shall be the difference
between the selling price and purchase price and where the value of such supply is negative it shall be
ignored.
(6) The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is
redeemable against a supply of goods or services or both shall be equal to the money value of the goods or
services or both redeemable against such token, voucher, coupon, or stamp.
(7) The value of taxable services provided by such class of service providers as may be notified by the
Government on the recommendations of the Council as referred to in Entry 2 of Schedule I between distinct
persons as referred to in section 25, other than those where input tax credit is not available under sub-section
(5) of section 17, shall be deemed to be NIL.
7. Value of su

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the payment made by the supplier on behalf of the recipient of supply has been separately indicated
in the invoice issued by the supplier to the recipient of service;
(vii) the supplier recovers from the recipient of supply only such amount as has been paid by him to the
third party; and
(viii) the services procured by the supplier from the third party as a pure agent of the recipient of supply are
in addition to the supply he provides on his own account.
Explanation. – For the purposes of this rule, “pure agent” means a person who –
(a)
enters into a contractual agreement with the recipient of supply to act as his pure agent to incur
expenditure or costs in the course of supply of goods or services or both;
(b) neither intends to hold nor holds any title to the goods or services or both so procured or provided
as pure agent of the recipient of supply;
(c)
(d)
does not use for his own interest such goods or services so procured; and
receives only the actual

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GST – COMPOSITION RULES – Draft Rules 31-3-2017
GST
Dated:- 2-4-2017

GST – Composition Rules – Draft Rules 31-3-2017
=============
Document 1
1.
Chapter
COMPOSITION RULES
Intimation for composition levy
(1) Any person who has been granted registration on a provisional basis under sub-rule (1) of
rule Registration. 16 and who opts to pay tax under section 10, shall electronically file an intimation
in FORM GST CMP-01, duly signed, on the Common Portal, either directly or through a
Facilitation Centre notified by the Commissioner, prior to the appointed day, but not later than
thirty days after the said day, or such further period as may be extended by the Commissioner in
this behalf:
Provided that where the intimation in FORM GST CMP-01 is filed after the appointed day, the
registered person shall not collect any tax from the appointed day but shall issue bill of supply for
supplies made after the said day.
(2) Any person who applies for registration under ru

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the said section,
electronically, in FORM GST CMP-03, on the Common Portal, either directly or through a
Facilitation Centre notified by the Commissioner, within sixty days of the date from which the
option for composition levy is exercised or within such further period as may be extended by the
Commissioner in this behalf.
(5) Any intimation under sub-rule (1) or sub-rule (3) in respect of any place of business in any
State or Union territory shall be deemed to be an intimation in respect of all other places of business
registered on the same PAN.
2. Effective date for composition levy
(1) The option to pay tax under section 10 shall be effective from the beginning of the financial
year, where the intimation is filed under sub-rule (3) of rule 1 and the appointed date where
intimation is filed under sub-rule (1) of the said rule.
1
|
(2) The intimation under sub-rule (2) of rule 1 shall be considered only after grant of registration
to the applicant and his option to pa

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red persons;
(e) he was not engaged in the manufacture of goods as notified under clause (e) of sub-section
(2) of section 10, during the preceding financial year;
(f) he shall mention the words “composition taxable person, not eligible to collect tax on
supplies” at the top of the bill of supply issued by him; and
(g) he shall mention the words “composition taxable person” on every notice or signboard
displayed at a prominent place at his principal place of business and at every additional place or
places of business.
(2) The registered person paying tax under section 10 may not file a fresh intimation every year
and he may continue to pay tax under the said section subject to the provisions of the Act and these
rules.
4
(1)
Validity of composition levy
The option exercised by a registered person to pay tax under section 10 shall remain valid
so long as he satisfies all the conditions mentioned in the said section and these rules.
(2) The person refer

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reply to the show cause notice issued under sub-rule (4) from the registered
person in FORM GST CMP-06, the proper officer shall issue an order in FORM GST CMP-07
within thirty days of receipt of such reply, either accepting the reply, or denying the option to pay
tax under section 10 from the date of option or from the date of the event concerning such
contravention, as the case may be.
(6) Every person who has furnished an intimation under sub-rule (2) or filed an application for
withdrawal under sub-rule (3) or a person in respect of whom an order of withdrawal of option has
been passed in FORM GST CMP-07 under sub-rule (5), may electronically furnish at the
Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, a
statement in FORM GST ITC-01 containing details of the stock of inputs and inputs contained in
semi-finished or finished goods held in stock by him on the date on which the option is withdrawn
or denied, within 30 days, fr

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FOUR GST BILL THAT WERE PASSED BY CABINET
By: – esha agrawal
Goods and Services Tax – GST
Dated:- 1-4-2017

The Union Cabinet has cleared four bills related to the Goods and Services Tax (GST), ahead of their introduction in Parliament, to enable roll out of the tax reform from July 1.
Approval of the bills by Parliament and a separate one by all state Assemblies will complete the legislative process for roll out of the GST, the one-nation-one-tax system that merges central taxes like excise duty and service tax and state levies like VAT.
What is GST bill?
* Goods and Services Tax bill is India's biggest reform in India's indirect tax structure.
* The purpose of the bill is to introduce one single tax on supply of goods

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n Bill)
GST Bill peak rate to be 40%, slabs intact for now
The GST levy may go up to 40 percent after the GST Council proposed raising the peak rate in the Bill to 20 percent, from the current 14 percent, to obviate the need for approaching Parliament for any change in rates in future.
The change in the peak rate will not alter the 4-slab rate structure of 5, 12, 18 and 28 percent agreed upon last year for the moment, In addition, a cess will be levied on demerit goods like luxury cars, aerated drinks and tobacco products.
The CGST Bill sets the tax regime for the levy of GST on intra-state supply of goods or services or both by the central government. IGST Bill deals levy of GST on inter-state supply of goods or services or both by th

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GST COUNCIL'S 13TH MEETING: AGENDA STILL UNFINISHED
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 1-4-2017

GST Council (GSTC) met for the 13th time yesterday in last 6 months at New Delhi. The GSTC inter alia, decided on following –
* Approval to draft GST rules (5 out of 9) which were released in September 2016 duly aligned with GST law as approved by Lok Sabha on 29 March, 2017.
* The rules approved by GSTC are in relation to-
* Registration of taxpayers
* Payment of tax
* Filing of returns
* Invoicing, debit & credit notes
* Refunds
The tentative approval has been accorded to the remaining four set for rules which relate to:
* Valuation of supply of goods / services
* Input tax credit

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days if such rules are finalized on 18-19 May, 2017.
The 14th meeting of the GST Council has been scheduled for 18-19 May, 2017 (after a gap of 48 days from now) at Srinagar (J&K) which has been kept out of CGST of regime as per the law passed for technical / legal reasons.
The main agenda for the next GSTC meeting would be to:
* Grant final approval to tentatively approved four set of rules, and
* Approval of rate structure in relation to individual items of goods and services
While it is expected that group of officers, both from the centre and states will now work as fitment of goods and services into the four GST rate slabs, there are few questions that remain to be answered :
* Why this long gap of 48 days before next meeting

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Central Excise Amendments Post-GST: Key Changes, Implications, and Transition Guidance for Tax Regulations.

GST
Central Excise – Post GST amendments
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

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EXTRACT FROM THE FINANCE ACT, 2005 (18 OF 2005) – THE SEVENTH SCHEDULE
Annexure
Bill
Annexure
Taxation Laws (Amendment) Bill, 2017
EXTRACT FROM THE FINANCE ACT, 2005 (18 OF 2005)
* * * * *
THE SEVENTH SCHEDULE
(See section 85)
NOTES
1. In this Schedule, "heading", "sub-heading", "tariff item" and "Chapter" mean respectively a heading, sub-heading, tariff item and Chapter in the First Schedule to the Central Excise Tariff Act.
2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall apply to the interpretation of this Schedule.
Tariff item
Description o

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Flue cured virginia tobacco
kg.
10%
2401 20 20

Sun cured country (natu) tobacco
kg.
10%
2401 20 30

Sun cured virginia tobacco
kg.
10%
2401 20 40

Burley tobacco
kg.
10%
2401 20 50

Tobacco for manufacture of biris, not stemmed
kg.
10%
2401 20 60

Tobacco for manufacture of chewing tobacco
kg.
10%
2401 20 70

Tobacco for manufacture of cigar and cheroot
kg.
10%
2401 20 80

Tobacco for manufacture of hookah tobacco
kg.
10%
2401 20 90

Other
kg.
10%
2401 30 00
–
Tobacco refuse
kg.
10%
2402
CIGARS, CHEROOTS, CIGARILLOS AND CIGARETTES, OF TABACCO OR OF TABACCO SUBSTITUTES
2402 10
–
Cigars, cheroots and cigarillos, containing tobacco:
2402 10 10

Cigars and cheroots
Tu
10%
2402 10 20

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75 millimeters
Tu
₹ 110 per thousand
2402 20 50

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 75 millimetres but not exceeding 85 millimetres
Tu
Rs.145 per thousand
2402 20 90

Other
Tu
₹ 180 per thousand
2402 90
–
Other:
2403
OTHER MANUFACTURED TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES; “HOMOGENISED”OR “RECONSTITUTED”
TOBACCO, TOCACCO EXTRACTS AND ESSENCES
2403 10
–
Smoking tobacco, whether or not containing tobacco substitutes in any proportion:
2403 10 10

Hookah or gudaku tobacco bearing a brand name
kg.
10%
2403 10 20

Smooking mixtures for pipies and cigarettes
kg.
10%
2403 10

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EXTRACT FROM THE FINANCE ACT, 2001 (14 OF 2001) – THE SEVENTH SCHEDULE
Annexure
Bill
Annexure
Taxation Laws (Amendment) Bill, 2017
EXTRACT FROM THE FINANCE ACT, 2001 (14 OF 2001)
* * * * *
THE SEVENTH SCHEDULE
(See section 136)
NOTES
1. In this Schedule, "heading", "sub-heading" and "Chapter" mean respectively a heading, sub-heading and Chapter in the First Schedule to the Central Excise Tariff Act.
2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall apply to the interpretation of this Schedule.
Heading Sub-heading
No. No.
Description of Goods
Rate of dut

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per thousand
2403.15

Filter cigrettes, of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 75 millimetres but not exceeding 85 millimetres
₹ 190 per thousand
2403.19

Other
₹ 235 per thousand
2403.20
–
Cigarettes of tobacco substitutes
₹ 150 per thousand
24.04
2404.10
–
Smoking mixtures for pipes and cigarettes
45%
2404.31

Other than paper rolled biris, manufactured without the aid of machines
Re. 1.00 per thousand
2404.39

Other
₹ 2.00 per thousand
2404.41

Chewing tobacco and preparations containing chewing tobacco
10%
2404.49

Pan masala containing tobacco
10%
2404.50
–
Snuff of tobacco and

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THE SECOND SCHEDULE [See section 8] – Tobacco
Annexure
Bill
Annexure
Taxation Laws (Amendment) Bill, 2017
THE FIRST SCHEDULE
THE SECOND SCHEDULE
[See section 8]
Tobacco
THE THIRD SCHEDULE
[See section 2( f ) (iii)]
NOTES
1. In this Schedule, "heading", "sub-heading" and "tariff item" mean respectively a heading, sub-heading and tariff item in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).
2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), the Section and Chapter Notes and the General Explanatory Notes of the said First Schedule shall, apply to the interpretation of this Schedule.
S. No.
Heading, sub-heading or tariff item
Description of goods
(1)
(2)
(3)
1.
0402 91 10 or 0402 99 20
Concentrated (condensed) milk, whether sweetened or not put up in unit containers and ordinarily intended for sale
2.
1702
Preparation of other sugar
3.
1702

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centrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee
15.A
2101 20
Extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or conventrates or with a basis of tea or mate
16.
2102
All goods
17.
2105 00 00
Ice cream and other edible ice, whether or not containings cocoa
18.
2106 90 20
Pan masala, only in retail packs containing ten grams or more per pack, other than the goods containing not more than 15% betel nut by weight and not containing tobacco in any proportion
19.
2106 90 30
Betel nut powder known as "Supari"
20.
2106 90 11
Sharbat
21.
2106 10 00, 2106 90 19,
2106 90 40, 2106 90 50,
2106 90 60, 2106 90 70
2106 90 80, 2106 90 91,
2106 90 99
Edible preparations (excluding "Prasad or prasadam"), not elsewhere specified or included, bearing a brand name
22.
2201
Waters, including natural or artificial mineral waters

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prietary) other than those which are exclusively used in Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemical systems.
Explanation.-For the purposes of this heading, "Patent or proprietary medicaments" means any drug or medicinal preparation, in whatever from, for use in the internal or external treatment of, or for the prevention of ailments in human beings or animals, which bears either on itself or on its container or both, a name which is not specified in a monograph, in a Pharmacopoeia, Formulary or other publications, namely:-
(a) the Indian Pharmacopoeia;
(b) the International Pharmacopoeia;
(c) the National Formulary of India;
(d) the British Pharmacopoeia;
(e) the British Pharmaceutical Codex;
(f) the British Veterinary Codex;
(g) the United States Pharmacopoeia;
(h) the National Formulary of the U.S.A.;
(i) the Dental Formulary of the U.S.A.; and
(j) the State Pharmacopoeia of the U.S.S.R.;
or which is a brand name, that is, a name or a registered trad

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, Unani, Siddha, Homoeopathic or Biochemic systems and sold under a brand name.
Explanation.-For the purposes of this entry, "brand name" means a brand name, whether registered or not, that is to say, a name or a mark, such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to a medicament, for the purpose of indicating, or so as to indicate, a connection in the course of trade between the medicament and some person using such name or mark with or without any indication of the identity of that person.
32.
3204 20 or 3204 90 00
Synthetic organic products of a kind used as florescent brightening agents or as a luminophores
33.
3206
All goods other than pigments and inorganic products of a kind used as luminophores
34.
3208 or 3209 or 3210
All goods
35.
3212 90
Dyes and other colouring matter put up in forms or small packing of a kind used for domestic or laboratory purposes
36
(i) 3213
(ii) 3214
All goods
All goo

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excluding waxes of heading 3404
44.
3506
Prepared glues and other prepared adhesives not elsewhere specified or included
45.
3702
All goods other than for X-ray and cinematograph films, unexposed
46.
3808
Insecticides, fungicides, herbicides, weedicides and pesticides
47.
3808
Disinfectants and similar products
47A.
3808 93 40
Plant growth regulators
48.
3814 00 10
Thinners
49.
3819
Hydraulic brake fluids and other propared liquids for hydraulic transmission, not containing or containing less than 70% by weight of petroleum oils obtained from bituminous minerals
50.
3820 20 00
Anti-freezing preparations and prepared de-icing fluids
51.
3824 or 3825
Stencil correctors and other correcting fluids, ink removers put up in packing for retail sale
52.
3919
Self-adhesive tapes of plastics
53.
3923 or 3924
Insulated ware
53A.
39 or 40
Nipples for feeding bottles
53B.
4015
Surgical rubber gloves or medical examination rubber gloves
54.
4816
Carbon pape

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er purifiers, of a kind used for domestic purposes
70A.
8421 21 20, 8421 99 00
Water filters functioning without electricity and replaceable kits thereof
71.
8422
Dish washing machines
71A.
8443 31 00 or 8443 32
Printer, whether or not combined with the functions of copying or facsimile transmission
71B.
8443 32 60 or 8443 39 70
Facsimile machines
71C.
8443 99 51
Ink cartridges, with print head assembly
72.
8450
Household or laundry type washing machines, including machines which both was and dry
73.
8469
Typewriters
74.
8470
Calculating machines and pocket-size data recording, reproducing and displaying machines with calculating functions
74A.
8471 30
All goods
74B.
8471 60
All goods
75.
8472
Stapling machines (staplers)
76.
8506
All goods other than parts falling under tariff item 8506 90 00
76A.
8508
All goods other than parts falling under tariff item 8508 70 00
77.
8509
All goods other than parts falling under tariff item 8509 90 00
78.

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in tariff items 8523 21 00, 8523 29 60 to 8523 29 90, 8523 41 20 to 8523 41 50, 8523 49 30, 8523 49 50 to 8523 49 90, 8523 52 10, 8523 59, 8523 80 20, 8523 80 30 and 8523 80 60
84A
8523 80 20
Package software or canned software.
Explanation.-For the purposes of this Schedule, "Packaged software or canned software" means a software developed to meet the need of variety of users, and which is intended for sale or capable of being sold off the shalf.
85 to 88.
* * *
89.
8517 or 8525 60
Mobile handsets including Cellular Phones and Radio trunking terminals
89A.
8527
Pagers
90.
8527
Radio sets including transistor sets, having the facility of receiving radio signals and converting the same into audio output with no other additional facility like sound recording or reporducing or clock in the same housing or attached to it.
91.
8527
Reception appartus for radio-broadcasting, whether or not combined, in the same housing with sound recording or reproducing apparatus

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CHAPTER II LEVY AND COLLECTION OF DUTY
Annexure
Bill
Annexure
Taxation Laws (Amendment) Bill, 2017
CHAPTER II
LEVY AND COLLECTION OF DUTY
Duties specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 to be levied.
(1) There shall be levied and collected in such manner as may be prescribed,-
(a) a duty of excise to be called the Central Value Added Tax (CENVAT) on all excisable goods (excluding goods produced or manufactured in special economic sones) which are produced or manufactured in India as, and at the rates, set forth in the First Schedule to the Central Excise Tariff Act, 1985. (5 of 1986)
(b) a special duty of excise, in addition to the duty of excise specified in clause (a) above, on excisable goods (excluding goods produced or manufactured in special economic zones) specified in the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) which are produced or manufactured in India, as, and at the rates,

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ifferent rates, then, such duty shall, for the purposes of this proviso, be deemed to be leviable at the highest of those rates.
Explanation 2.-In this proviso,-
(i) * * * * * *
(ii) "hundred per cent export-oriented undertaking" means an undertaking which has been approved as a hundred per cent export-oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951, (65 of 1951) and the rules made under that Act.
(iii) "Special Economic Zone" has the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005. (28 of 2005)
(1A) The provisions of sub-section (1) shall apply in respect of all excisable goods other than salt which are produced or manufactured in India by, or on behalf of, Government, as they apply in respect of goods which are not produced or manufactured by Government.
(2) The Central Gove

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Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods.
(3A) (1) * * * * *
Explanation 1.- For the removal of doubts, it is hereby clarified that for the purposes of section 3 of the Customs Tariff Act, 1975, (51 of 1975) the duty of excise leviable on the notified goods shall be deemed to be the duty of excise leviable on such goods under the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985, (51 of 1975) read with any notification for the time being in force.
* * * * *
Publication of rules and notifications and laying of rules before Parliament.
38. (1) All rules made and notifications issued under this Act shall be published in the Official Gazette.
(2) Every rule made under this Act, every notification issued under [section 3A, section 4A, sub-section (1) of section 5A, section 5B and section 11C and every order made under sub-section (2) of section 5A, other than an order relating to

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EXTRACTS FROM THE CENTRAL EXCISE ACT, 1944 (1 OF 1944)
Annexure
Bill
Annexure
Taxation Laws (Amendment) Bill, 2017
EXTRACTS FROM THE CENTRAL EXCISE ACT, 1944 (1 OF 1944)
* * * *
Definitions
In this Act, unless there is anything repugnant in the subject or context,-
(a) * * * * *
(d) "excisable goods" means goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as being subject to a duty of excise and includes salt;
Explanation.-For the purposes of this clause, "goods" includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.
(e) "factory&qu

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EXTRACTS FROM THE CUSTOMS TARIFF ACT, 1975 (51 OF 1975) -Levy of additional duty equal to excise duty, sales tax, local taxes and other charges.
Annexure
Bill
Annexure
Taxation Laws (Amendment) Bill, 2017
EXTRACTS FROM THE CUSTOMS TARIFF ACT, 1975 (51 OF 1975)
* * * * *
Levy of additional duty equal to excise duty, sales tax, local taxes and other charges.
3.(1) * * * * *
(2) For the purpose of calculating under sub-sections (1) and (3), the additional duty on any imported article, where such duty is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962, (52 of 1962) be the aggregate of-
(i) * * * * *
(ii) any duty of

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nation III of the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1955.) the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under clause (2) of the said Explanation.
Explanation.-Where on any any imported article more than one retail sale price is declared, the maximum of such retail rice shall be deemed to be the retail sale price for the purposes of this section.]
(6) For the purpose of calculating under sub-section (5), the additional duty on any imported article, the

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EXTRACT FROM THE CUSTOMS ACT, 1962 (52 OF 1962)
Annexure
Bill
Annexure
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ANNEXURE
EXTRACT FROM THE CUSTOMS ACT, 1962 (52 OF 1962)
Definitions
* * * * *
2. In this Act, Unless the Context otherwise requires,-
* * * * *
(11) "Customs area" means the area of a customs station and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities;
* * * * *
–
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MEMORANDUM REGARDING DELEGATED LEGISLATION
MEMO
Bill
MEMORANDUM
Taxation Laws (Amendment) Bill, 2017
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 3 of the Bill seeks to insert new sections 108A and 108B in the Customs Act, 1962. Sub-section (1) of proposed section 108A empowers the Central Government to make rules to provide for the information to be furnished by persons specified therein in respect of import or export of goods and the manner of furnishing such information.
2. The matters in respect of which rules or regulations may be made or notifications may be issued in accordance with the provisions of the Bill are matters of procedure and detail and it is not practicable to provide for them in the Bill.
3. The delegation of legislative power is, therefore, of a normal character.
FINANCIAL MEMORANDUM
The Bill proposes to make certain amendments in the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act, 2001, th

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, it requires certain consequential amendments in the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act, 2001 and the Finance Act, 2005 and repeal of certain enactments.
3. The Customs Act, 1962 provides for removal of goods from a customs station to a warehouse without payment of duty. It is proposed to amend the said Act to include 'warehouse' in the definition of "customs area" to ensure that an importer would not be required to pay the proposed integrated goods and services tax at the time of removal of goods from a customs station to a warehouse. It is also proposed to amend the said Act to insert new provisions therein so as to provide for furnishing of information by specified persons in respect of import or export of goods, on the lines of the Income-tax Act, 1961, the Central Excise Act, 1944, Chapter V of the Finance Act, 1994 and the legislations referred to in paragraph 1.
4. The Customs Tariff Act, 1975 is pr

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made in the Central Excise Act, 1944 also relating to certain definitions, charging sections, provisions of deemed manufacture and insertion of emergency powers to increase the rate of duty, on the same lines as are presently provided in the Central Excise Tariff Act, 1985.
6. Consequent to the introduction of goods and services tax, the cesses or surcharges levied or collected as duties of central excise on excisable goods or as service tax on taxable services would become irrelevant, as the supplies of such goods [except Petroleum Crude, Motor Spirit (Petrol), High Speed Diesel, Aviation Turbine Fuel and Natural Gas, Tobacco and Tobacco products] and such services would be chargeable to goods and services tax. The proposed Bill seeks to abolish certain cesses or surcharges which are levied or collected as duty of excise or service tax under various Acts. The proposed Bill also seeks to abolish the cess levied on water consumed by certain industries and by local authorities under the

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THE THIRD SCHEDULE (See section 15)
THE THIRD SCHEDULE
Bill
SCHEDULES
Taxation Laws (Amendment) Bill, 2017
THE THIRD SCHEDULE
(See section 15)
Year
No.
Short title of enactments
Extent of repeal
(1)
(2)
(3)
(4)
1947
24
The Rubber Act, 1947
Clause (b) of sub-section (1) of section 9 and section 12
1951
65
The Industries (Development and Regulation) Act, 1951
Section 9
1953
29
The Tea Act, 1953
Clause (c) of section 3, sections 25 and 26 and clause (a) of sub-

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General Rules for the interpretation of this Schedule
THE SECOND SCHEDULE
Bill
SCHEDULES
Taxation Laws (Amendment) Bill, 2017
THE SECOND SCHEDULE
(See section 12)
“THE FOURTH SCHEDULE
[See section 2 (d) and 2 (f) (ii)]
General Rules for the interpretation of this Schedule
Classification of goods in this Schedule shall be governed by the following principles:
1. The titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Sections or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions.
2. Any reference in a heading-
(a) to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be tak

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only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods;
(b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to clause (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable;
(c) when goods cannot be classified by reference to clause (a) or clause (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which

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ich has "-". Where the description of an article or group of articles is preceded by "" or "-", the said article or group of articles shall be taken to be a sub-classification of the immediately preceding description of the article or group of articles which has "-" or "".
2. The abbreviation "%" in column (4) of this Schedule, in relation to the rate of duty, indicates that the duty on the goods to which the entry relates shall be charged on the basis of the value of the goods fixed, defined or deemed to be, as the case may be, under or in subsection (2), read with sub-section (3), of section 3 or section 4 or section 4A of the Central Excise Act, 1944, (1 of 1944.) the duty being equal to such percentage of the value as is indicated in that column.
Additional Notes
In this Schedule,-
(1) the expression,-
(a) "heading", in respect of goods, means a description in list of tariff provisions accompanied by a four

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For
1. kg.
Kilogram
2. Tu
Thousand in number
SECTION IV
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
NOTE
In this Section, the expression "unit container" means a container, whether large or small (for example, tin, can, box, jar, bottle, bag or carton, drum, barrel or canister) designed to hold a predetermined quantity or number.
Chapter 24
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
NOTES
1. In this Chapter, "brand name" means a brand name, whether registered or not, that is to say, a name or a mark, such as a symbol, monogram, label, signature invented words or any writing which is used in relation to a product, for the purpose of indicating, or so as to indicate, a connection in the course of trade between the product and some person using such name or mark with or without any indication of the identity of that person.
2. In relation to products of heading 2401or 2402 or 2403, labelling or relabelling of containers or repacking from bulk packs t

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his Chapter:
(1) "tobacco" means any form of tobacco, whether cured or uncured and whether manufactured or not, and includes the leaf, stalks and stems of the tobacco plant, but does not include any part of a tobacco plant while still attached to the earth.
(2) "cut-tobacco" means the prepared or processed cut-to-size tobacco which is generally blended or moisturised to a desired extent for use in the manufacture of machinerolled cigarettes.
(3) "smoking mixtures for pipes and cigarettes" of sub-heading 2403 10 does not cover " Gudaku".
Tariff item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
2401
Unmanufactured Tobacco; Tobacco Refuse
2401 10
–
Tobacco, not stemmed or stripped:
2401 10 10

Flue cured virginia tobacco
kg.
64%
2401 10 20

Sun cured country (natu) tobacco
kg.
64%
2401 10 30

Sun cured virginia tobacco
kg.
64%
2401 10 40

Burley tobacco
kg.
64%
2401 10 50

Tobacco for manufacture of b

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ining tobacco:
2402 10 10

Cigar and cheroots
Tu
12.5% or ₹ 4006 per thousand, whichever is higher
2402 10 20

Cigarillos
Tu
12.5% or ₹ 4006 per thousand, whichever is higher
2402 20
–
Cigarettes, containing tobacco :
2402 20 10

Other than filter cigarettes, of length not exceeding 65 millimetres
Tu
₹ 1280 per thousand
2402 20 20

Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetres
Tu
₹ 2335 per Thousand
2402 20 30

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres
Tu
₹ 1280 per Thousand
2402 20 40

Filter cigarettes of length (including the length of the filter, the length of filter being 11 milliterres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres
Tu
₹ 1740 per Thousand
2402 20 50

Filter c

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03 19 10

Smoking mixtures for pipes and cigarettes
kg.
360%

Biris :
2403 19 21

Other than paper rolled biris, manufactured without the aid of machine
Tu
₹ 12 per thousand
2403 19 29
–
Other
Tu
₹ 80 per Thousand
2403 19 90

Other
kg.
40%
–
Other :
2403 91 00

“Homogenised” or “reconstituted” tobacco
kg.
60%
2403 99

Other :
2403 99 10

Chewing tobacco
kg.
81%
2403 99 20

Preparations containing chewing tobacco
kg.
60%
2403 99 30

Jarda scented tobacco
kg.
81%
2403 99 40

Snuff
kg.
60%
2403 99 50

Preparations containing snuff
kg.
60%
2403 99 60

Tobacco extracts and essence
kg.
60%
2403 99 70

Cut-tobacco
kg.
₹ 70 per kg
2403 99 90

Other
kg.
81%
SECTION V
MINERAL PRODUCTS
CHAPTER 27
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES
NOTES
1. References in heading 2710 to "petroleum oils and oils obtained from bituminous minerals"

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sed Natural Gas (CNG), for use as a fuel or for any other purpose, shall amount to "manufacture".
SUB-HEADING NOTE
For the purposes of sub-heading 2710 12, "light oils and preparations" are those of which 90% or more by volume (including losses) distil at 210ºC (ASTM D 86 method).
SUPPLEMENTARY NOTES
In this Chapter, the following expressions have the meanings hereby assigned to them:-
(1) "motor spirit" means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 25ºC and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. "Special boiling point spirits (tariff items 2710 12 11, 2710 12 12 and 2710 12 13 )" means light oils, as defined in sub-heading Note 4, not containing any anti-knock preparations, and with a difference of not more than 60ºC between the temperatures at which 5% and 90% by volume (including losses) distil;
(2) &#

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mined in the manner indicated in the Indian Standards Institution specification IS:1448 (p.18)-1967 for the time being in force;
(d) "Carbon Residue" shall be determined in the apparatus known as Ramsbottom Carbon Residue Apparatus in the manner indicated in the Indian Standards Institution specification IS:1448 (p. 8)-1967 for the time being in force;
(e) "Colour Comparison Test" shall be done in the following manner, namely:-
(i) first prepare a five per cent. weight by volume solution of Potassium Iodine (analytical reagent quality) in distilled water;
(ii) to this, add Iodine (analytical reagent quality) in requisite amount to prepare an exactly 0.04 normal Iodine solution;
(iii) thereafter, compare the colour of the mineral oil under test with the Iodine solution so prepared.
Tariff item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
2709
Petroleum oils and oils obtained from bituminous minerals, crude.
Kg.
…..
2709 10 00
–

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re
2710 12 12
– Special boiling point spirits (other than benzene, toluene and toluol) with nominal boiling point range 63-70 °C
Kg.
14%+Rs. 15.00 per litre
2710 12 13
– Other Special boiling points sprits (other than benzene, benzol, toluene and toluol)
Kg.
14%+Rs 15.00 per litre
2710 12 19
– Other
Kg.
14%+Rs. 15.00 per litre
2710 12 20
Natural gasoline Liquid
Kg.
14%+Rs 15.00 per litre
2710 12 90
Other
Kg.
14%+Rs
15.00 per litre
2710 19
Other:
2710 19 10
Superior Kerosene oil (SKO)
Kg.
…..
2710 19 20
Aviation turbine Fuel (ATF)
Kg.
14%
2710 19 30
High speed diesel (HSD)
Kg.
14%+Rs 15.00 per litre
2710 19 40
Light Diesel oil (LDO)
Kg.
…..
2710 19 50
Fuel oil
Kg.
…..
2710 19 60
Base oil
Kg.
…..
2710 19 70
Jute batching oil and textile oil
Kg.
…..
2710 19 80
Lubricating oil
Kg.
…..
2710 19 90
Other
Kg.
…..
– Waste oil:
…..
2710 20 00
Petroleum oils and o

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THE THIRD SCHEDULE [See section 2 (f) (iii)]
THE FIRST SCHEDULE
Bill
SCHEDULES
Taxation Laws (Amendment) Bill, 2017
THE FIRST SCHEDULE
(See section 11)
"THE THIRD SCHEDULE
[See section 2 (f) (iii)]
NOTES
1. In this Schedule, "heading", "sub-heading" and "tariff item" mean respectively, a heading, sub-heading and tariff item in the Fourth Schedule.
2. The rules for the interpretation, the Section, Chapter Notes and the General Explanatory

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Collection and payment of arrears of duties
Clause 16
Bill
MISCELLANEOUS
Taxation Laws (Amendment) Bill, 2017
Collection and payment of arrears of duties
16. Notwithstanding the repeal of the enactments specified in the Third Schedule, the proceeds of duties levied under the said enactments immediately preceding the date appointed under sub-section (2) of section 1,-
(i) if collected by the collecting agencies but not paid into the Reserve Bank of India; or
(ii) if not collec

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Repeal and savings of certain enactments.
Clause 15
Bill
MISCELLANEOUS
Taxation Laws (Amendment) Bill, 2017
Repeal and savings of certain enactments.
15. (1) The enactments specified in the third column of the Third Schedule are hereby repealed to the extent specified in the fourth column thereof.
(2) Notwithstanding the repeal under sub-section (1), such repeal shall not-
(a) affect any other law in which the repealed enactment has been applied, incorporated or referred to;
(b) affect the validity, invalidity, effect or consequences of anything already done or suffered or any right, title, obligation or liability already acquired, accrued or incurred or any remedy or proceeding in respect thereof, or any release or dis

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Amendment of Seventh Schedule to Act 18 of 2005.
Clause 14
Bill
MISCELLANEOUS
Taxation Laws (Amendment) Bill, 2017
Amendment of Seventh Schedule to Act 18 of 2005.
14. In the Finance Act, 2005, in the Seventh Schedule, tariff item 2106 90 20 and the entries relating thereto shall be omitted.
–
Clause 14 of the Bill seeks to amend the Seventh Schedule to the Finance Act, 2005, so as to omit the entries relating to Pan Masala.
Statute, statutory provisions legislation, law,

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Amendment of Seventh Schedule to Act 14 of 2001.
Clause 13
Bill
MISCELLANEOUS
Taxation Laws (Amendment) Bill, 2017
CHAPTER IV
MISCELLANEOUS
Amendment of Seventh Schedule to Act 14 of 2001.
13. In the Finance Act, 2001, in the Seventh Schedule,-
(a) except tariff items 2402 20 10, 2402 20 20, 2402 20 30, 2402 20 40, 2402 20 50, 2402 20 90, 2402 90 10, 2403 11 10, 2403 19 10, 2403 19 21, 2403 19 29, 2403 19 90, 2403 91 00, 2403 99 10, 2403 99 20, 2403 99 30, 2403 99 40, 2403 9

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Insertion of Fourth Schedule.
Clause 12
Bill
CENTRAL EXCISE
Taxation Laws (Amendment) Bill, 2017
Insertion of Fourth Schedule.
12. In the Central Excise Act, after the Third Schedule, the Schedule specified in the Second Schedule shall be inserted.
–
Clause 12 of the Bill seeks to insert a new Fourth Schedule in the Central Excise Act, 1944 so as to prescribe the central excise tariff in respect of goods which would continue to be chargeable to central excise duty even afte

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