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COMPARATIVE ANALYSIS OF CHANGES MADE IN INPUT TAX CREDIT- PART-II
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 17-12-2016

DAILY DOSE OF UPDATE BY CA PRADEEP JAIN
COMPARATIVE ANALYSIS OF CHANGES MADE IN INPUT TAX CREDIT- PART-II:-
This update seeks to highlight the changes made in the Revised GST Law as compared to the old GST Draft with respect to provisions relating to input tax credit as follows:-
A list of exclusions has been provided wherein it is specified that the credit shall not be available for motor vehicles and other conveyances except when used for making taxable supplies like supply of such conveyances, transportation of passengers, imparting training or driving or for transportation of goods. The

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supply of similar nature. The dispute may arise on term "supply of similar nature". Suppose, a hotel take service of outward catering for marriage function of a client (Mandap Keeper service). Whether it will be treated as outward taxable supply of similar nature. Same will be the case of event management company.
The credit of rent-a cab, life insurance, health insurance will also not be available unless Government notifies that such services are obligatory for an employer to provide to its employees under any law for the time being in force. The admissibility of credit when such services are availed under obligation is a welcome step and was not there in earlier law.
With respect to availability of credit in special circums

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is question.
The registered taxable person shall be liable to pay an amount equal to input tax credit on capital goods reduced by the percentage points or tax on transaction value whichever is higher, in case of supply of capital goods or plant or machinery on which input tax credit has been taken. A new proviso has been added to provide that in case of refractory bricks, moulds and dies, jigs and fixtures supplied as scrap, taxable person may pay tax on transaction value of such goods. But the current Cenvat credit Rules provided for duty payment on value of scrap of all capital goods. But as per these new proposed provisions in revised draft GST Law, the duty is to be paid on such capital goods only even if they are scrap only.
You may

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ISSUE OF TAX INVOICE IN SPECIFIC CASES
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 17-12-2016

Tax Invoice by Input Service Distributor (ISD)
Under section 17 of the model GST law, an Input Service Distributor (ISD) has to issue a prescribed document to distribute the credit. As per explanation to section 23 of model GST law dealing with tax invoice, it has been clarified that the expression 'tax invoice' shall be deemed to include a document issued by an Input Service Distributor under section 17. Thus, an ISD will issue a document which will deemed to be a tax invoice.
According to Rule 5(1) of draft GST Invoice Rules, tax invoice issued by an Input Service Distributor(ISD) shall contain the following details:
* name, address and GSTIN of the Input Service Distributor(ISD),
* a consecutive serial number containing only alphabets and/or numerals, unique for a financial year,
* date of its issue,
* following details:
* name,
* address,

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ibed particulars in lieu of tax invoice then such documents shall be considered as tax invoice for supplies made by taxable person.
Tax Invoice by Banking Company / Financial Institution / Non-banking Financial Company (NBFC)
According to Rule 5(2) of draft GST Invoice Rules, where supplier of taxable service is a banking company or a financial institution including a non-banking financial company, such 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 containing other information as prescribed under Rule 1 of draft GST Invoice Rules.
Therefore, where the taxable person is banking company or a financial institution including a NBFC, issues documents containing prescribed particulars in lieu of tax invoice, then such documents shall be considered as tax invoice for supplies made by taxable person.
Tax Invoice by Goods T

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the consignee,
* registration number of goods carriage in which the goods are transported,
* details of goods transported,
* details of place of origin and destination,
* GSTIN of the person liable for paying tax whether as consignor, consignee or goods transport agency, and
* other prescribed information.
It should also contain other information as prescribed under Rule 1.
Tax Invoice by Passenger Transportation Service Provider
According to Rule 5(4) of draft GST Invoice Rules, where supplier of taxable service is supplying passenger transportation service, a tax invoice shall include ticket in any form, by whatever name called, and whether or not containing the address of the recipient of service, but containing other information as prescribed under Rule 1. Thus, passengers tickets can also be considered as a tax invoice.
Reply By Ganeshan Kalyani as =
Nice article sir. Even in the current tax regime the ingredient that an invoice should contain in enumerated in th

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ection 17 of Model GST Act are reproduced as below:
'(1) The Input Service Distributor may distribute, in such manner as may be prescribed, the credit of CGST as IGST and IGST as IGST, by way of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit are located in different States.
(CGST ACT)
(1) The Input Service Distributor may distribute, in such manner as may be prescribed, the credit of SGST as IGST, by way of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit are located in different States.
(SGST ACT)'
Further, at the time of writing this article, old model GST law was in force. As per revised model GST law, section 28 deals with provision related to tax invoice.
Thanks and Regards,
Sanjay Kumawat
Dated: 19-12-20

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Provision for Supply of goods to job worker under revised GST Law
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 16-12-2016

First of all, one need to understand the definition of Job work under Revised GST law. After that it will be easier to understand the provision relating to supply of goods to job worker. Goods either input or capital goods can be directly send to Job worker and supply of input can be directly make from job worker' place subject to the following provisions provided in Section- 55 of the Revised GST Law.
Definition as per Section – 2[61] of Revised MGL.
“”job work” means undertaking any treatment or process by a person on goods
belonging to another registered taxable person and the express

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payment of tax within one year and three year respectively.
Supply directly from there on payment of taxes within India or with or without payment of taxes for export as the case may be within the period stipulated above.
Supply of goods from place of business of job worker within India with payment of taxes, with or without payment of taxes for export, as the may be. Provided the Principal declared the place of business of job worker his additional place of business. In the following cases the said provision shall not be applicable
i] where the job worker is registered under Sec.23.
ii] where the principal is supplying such goods as may be notified by commissioner in this behalf.
The onus of prove for accountability of input and or c

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n Job Work
Whether goods sent by registered taxable person to job worker treated as supply of goods and liable to tax?
No. supply of goods from RTP to job worker shall not be treated as supply of goods as per Sec. 43A.
Whether the goods of principal directly supplied from Job worker's premises will be included in the turnover of Job worker?
No. That will be added in the turnover of principal.
What are the provision of taking ITC in respect of input/ capital goods sent to job worker?
As per Section 20 of Revised MGL, Principal shall be entitled to take credit of input or capital goods. If the input or capital goods has not been received back within stipulated time of one year and three year respectively, ITC shall be paid. ITC can be

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Input Tax Credit under the revised GST Law
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 16-12-2016

There is drastic change in the Capital Goods definition under Revised GST Law from GST Law. Under the GST law definition was very exhaustive though under the Revised GST law It is quite simple. Under GST law, Capital goods was defined under Section- 2(20) and Under CCR, 2004 the same was provided under Rule 2(a) and both the definition were almost same except some words here and there. But new definition under section 2(19) of Revised GST law is simple and rational. Now, We can go through all definition related to Input tax Credit under Revised GST Law to understand the input tax credit in detail.
Definition of Capital Goods, Input and Input Services under revised GST Law
Capital Goods -Sec. 2(19)
“Capital good” means goods , the value of which is capitalized in the books of accounts of person claiming the credit which are used or intended to be used in th

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er specified in Sec. 44 [ Levy of Tax, Interest and penalty] and the said amount shall be credited to his ECL [electronic credit ledger].
Input tax credit for pipe line and telephone tower fixed to earth by foundation and structural support shall be available as follows:
1/3 in the first year when goods received
1/3 in the next year
The balance in subsequent financial year
No person can claim credit but subject to provision of sec. 36, except the following in possession:;
Invoice or debit note
Received the goods or services
Tax charged on such supply has been paid to Government
Person has filed the return u/s 34
Where the goods are received in installment or lots, ITC shall be available at the time receiving of final installment or lot.
Recipient shall make the payment to supplier within three months from the date of invoice otherwise the ITC taken shall be added to the output tax liability with interest.
Where the RTP has claimed depreciation as per Income Tax Act on cost

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ave the option of either accept the provision as specified in 2[B] above or take 50 of the eligible credit on input, capital goods and input services.
E] Despite the provision of Sec. 16[1] and Section 18 [1][2][3][4] ITC shall not be available on the following;
a] motor vehicle other conveyance except the following
i] for making the following taxable supplies further supply of such vehicle or conveyance transporting of passenger imparting training on driving , flying ,navigating such vehicle or conveyance.
ii] for transportation of goods
b] supply of goods or service, namely
Food and beverage, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, except when such inward supply of goods and services is used for output taxable supply of the same category of goods and services.
Membership of club, health and fitness services
Rent a cab, life insurance, health insurance
Travel benefit extended to employee on vocation such as leave or home travel con

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mmediately proceeding the date of grant of registration.
Where the RTP ceases to pay tax under sec.9 , will be entitle to claim ITC on input, semi finished and finished goods and capital goods on immediately proceeding the day on which he is liable to pay tax. Provided that credit on capital goods shall be reduced by percentage point as prescribed.
Where an exempt supply of goods and services by RTP becomes taxable, will be entitle to claim ITC on input, semi finished and finished goods and capital goods on immediately proceeding the day on which he is liable to pay tax. Provided that credit on capital goods shall be reduced by percentage point as prescribed
RTP can not claim input tax credit under the above said sub sections after the expiry of one year from the date of invoice.
Where there is change in the constitution of RTP on account of sale, merger, demerger, amalgamation , lease or transfer of the business, in such cases RTP shall be allowed to transfer the unutilized input

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edit of input sent for job work provided the input after job work has been received back within one year from the date of sent out. ITC can be claimed even if the goods directly sent to job worker. One year shall be computed from the date of receipt of material by Job worker. If the goods have not been returned within the stipulated period the same shall be treated as supply to job worker from the date of goods sent out.
Principal subject to such condition as prescribed, entitled to take credit of ITC on capital goods sent to job worker. Credit shall be valid if such goods have been received back within three years of being sent out. ITC can be taken even if the capital goods directly received by job worker. If the capital goods have not been returned within the stipulated period the same shall be treated as supply to job worker from the date of capital goods sent out.
The aforesaid period of one year or three year shall not be applied in case of moulds, dies, jigs and fixture, or to

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is located in different states. ………………………………..> Under SGST Act.
ISD can distribute the ITC subject to the following :
only on prescribed document containing the details as prescribed.
The amount of credit distributed can not exceed the amount of credit
ITC can be distributed only to that recipient eligible.
Can be distributed to attributable recipient. If more than one recipient, it shall be on pro rata based on the turnover of the state, of the relevant period. Recipient should be operational in that relevant period.
Manner of recovery of credit Distributed in excess [Sec-22]
Where the ISD distribute any credit without following the provisions of Sec. 21 resulting in excess distribution of credit , the same shall be recovered from such recipient along with interest, and the provision of sec. 66 or 67 [demand and recovery] shall apply mutatis mutandis for such recovery.
FAQ ON INPUT TAX CREDIT
Q. Can GST paid on reverse charge be considered as input ta

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he can avail the credit on input and input contained in semi finished goods and finished goods on the date immediately proceeding the date from which he becomes liable to pay tax.
Q. Weather the principal is eligible to take input on input sent to job worker?
A. Yes. As prescribed in sec. 20[1].
Q. What is the recovery mechanism for wrongly availed credit.
A. As per Sec.19 , the same shall be recovered from RTP as per the provision.
Reply By JAIPRAKASH RUIA as =
ONE
Recipient shall make the payment to supplier within three months from the date of invoice otherwise the ITC taken shall be added to the output tax liability with interest.
Payment of tax part of invoice or full invoice amount ?
If full Invoice amount, than what about part payment or 10% retention/PBG is kept.
TWO
Is it not contradictory that again the Definition of Capital Goods made very vide by saying "used or intended to be used in the course or furtherance of business".
and restricted as under in

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COMPARATIVE ANALYSIS OF CHANGES MADE IN INPUT TAX CREDIT- PART-I:
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 16-12-2016

COMPARATIVE ANALYSIS OF CHANGES MADE IN INPUT TAX CREDIT- PART-I:-
This update seeks to highlight the changes made in the Revised GST Law as compared to the old GST Draft with respect to provisions relating to input tax credit as follows:-
A new proviso in section 16(1) specifying the manner of credit availment in case of pipelines and telecommunication tower fixed to Earth has been inserted which states that the input tax credit shall not exceed one third in the financial year in which said goods are received. The assessee can further avail upto two third of the total credit in the year suc

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ice to them.
An explanation has been added in section 17(2) which pertains to credit availment provision for persons effecting taxable supplies and exempt supplies. The provision states that the registered taxable person shall be eligible for availing input tax credit as is attributable to taxable supplies including zero rated supplies made by him. The explanation further clarifies that exempt supplies shall include supplies on which recipient is liable to pay tax under reverse charge mechanism. This has the effect that credit will not be available for supplies for which tax is payable by recipient under reverse charge mechanism.
A special provision for banking company or financial institution has been proposed which is in line with the

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d in taxable and partly used in exempted and credit on capital goods is denied only if they are exclusively used in exempted goods/services but in the proposed GST law, there are provisions for credit reversal even in case of capital goods partly used for taxable and exempt supplies.
We will draw your attention on the remaining changes made in input tax credit provisions in the revised GST Law in our next update.
Reply By Ganeshan Kalyani as =
The clause discussed in point 2 states that credit would be allowed only if the payment to the service provider. Does this indirectly implies that only if receiver of service does the payment of the value of service render to the service provider, the service provider shall deposit the tax so char

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Bring land, realty, power under GST fold
GST
Dated:- 15-12-2016

New Delhi, Dec 15 (PTI) As the Narendra Modi government wages its biggest war on black money yet, Chief Economic Advisor Arvind Subramanian on Thursday pitched for including land and real estate under the GST regime to check money laundering and corruption.
Subramanian, who for the finance ministry had authored a report on possible tax rates under the Goods and Services Tax (GST), suggested that the new indirect tax set-up should be clean with simple low rates and should include land and property as well as electricity.
GST, which the government intends to roll out from April 1, 2017, is to subsume central excise, service tax and state VAT among other indirect l

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said.
This, he said, can "keep the system of self-policing" of black money. "So, it is terribly important that land and real estate being part of the GST," he added.
Subramanian said there is need to bring electricity charges that are not done by the states under GST.
"I think they should be part of GST and then the input credit can flow and make power more competitive. So, in terms of GST, clean, simple low rates, land, property part of it, power part of it also, will actually be not just important in itself but as a complement to bigger fight against black money and corruption that we embark on," he said.
Subramanian had recommended a three-tier rate structure for GST, under which some essential goods we

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GST Update: Whether GST migration is mandatory for all existing dealers having turnover is less than threshold limit 20L/10L?
By: – NarendraKumar Thotamsetty
Goods and Services Tax – GST
Dated:- 15-12-2016

GST Update: Whether GST migration is mandatory for all existing dealers having turnover is less than threshold limit 20L/10L?
The 101 Constitutional Amendment of the Goods and Service Tax (GST) is only Constitution amendment with reference the Goods and Service Tax in the place of existing Indirect Tax Mechanism. The Final bill is yet be approved by the House of Parliament and respective State Legislature Assembly. In this regard the Government of India has initiated enrolment schedule for the GST and specified enrolment

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2017
20/03/2017
Now the question is whether GST Migration is mandatory for all the existing Commercial Tax Registered dealers who registered under the State Commercial Tax Authority even if his turnover is less than the threshold limit and which is 20 Lakhs/10 Lakhs?
My answer is “Yes”. Till the date only constitutional amendment has come into existence and the Final Bill is yet be approved the by House of Parliament and respective State Legislature Assembly. Till the time it is only a draft law. All the Commercial Tax dealers obligated to enrol for the GST migration. As per my understanding there is no Exemption as far as now. One may be covered under Reverse Charge Mechanism with reference to procurement of services and Un-Registered D

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artment/Service Tax Department/ Excise Department without fail in order to avoid further penalty.
Reply By Ganeshan Kalyani as =
Nice article . My question is if the law is only draft then whether the requirement of enrolment within the time limit prescribed by GSTN and not by the Statute would attract any kind of penalty .
As you said that this is just provisional enrolment the procedure that the existing dealer has to carry out should also be lenient and not authoritative . Pls. share your view in this regard.
Dated: 15-12-2016
Reply By Chandravijay Shah as =
"Un-Registered Dealers should come within the ambit of GST and hence, they need to enrol for GST migration without fail." : Unregistered Dealers do not have TIN und

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CHANGES IN SCHEDULE IV AND SCHEDULE V OF REVISED GST DRAFT LAW
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 15-12-2016

CHANGES IN SCHEDULE IV AND SCHEDULE V OF REVISED GST DRAFT LAW
We have till now discussed the definition of supply along with provisions described in schedule I, schedule II and schedule III, and in this update, we will discuss the changes and consequences in schedule IV and V.
Schedule IV:- In the previous GST Law, Schedule IV specified the activities or transactions in respect of which the Central Government, a State Government or any Local Authority shall not be regarded as a taxable person. However, in the revised GST Law, Schedule IV specified activities or transactions undertaken by the Central Government, State Government or any local authority which shall be treated neither as supply of goods nor supply of services. Although, the heading of the Schedule has been changed but it does not has significant impact with the only differenc

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dic payments as it is very much clear from the proviso itself that only one time charges shall be exempt. The explanation was merely for clarification purpose and removing the same does not bring any sort of change.
No other change has been made in the revised draft in context of this schedule and it has been kept identical to earlier law. Also it is worthwhile to mention that the provisions mentioned in these schedules are exactly parallel to current Service Tax Laws.
SCHEDULE V:- In the previous GST draft law, the persons to be registered were specified in schedule III but in revised GST law, these have been transferred to schedule V. Changes made therein are discussed hereunder:-
In the revised GST Draft Law, there is substantial relaxation in the threshold limit for getting registered under GST Law. In earlier GST draft law, the limit for registration was nine lakh rupees which has been increased to twenty lakh rupees. It is an appreciable step from Government's side. As alread

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tes. For non special category the registration limit is as mentioned in above points and for the special category states the limit is ten lakh rupees. The government in earlier GST draft had explicitly specified that for the NE states including Sikkim the registration limit shall be four lakh rupees, but in new GST draft law though the limit for special category states has been increased but it is nowhere mentioned that special category states shall be North Eastern states including Sikkim. Hence, in future there is a possibility that government may specify a new list of states for this threshold limit.
In the list of persons who are required to get registered irrespective of the threshold limit following entries have been added:-
* Persons who are required to pay tax under sub-section (4) of section 8, irrespective of the threshold specified under paragraph 1;
* Persons who are required to collect tax under 56, whether or not separately registered under the Act;
* Every person

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CHANGES IN SCHEDULE III OF REVISED GST DRAFT LAW
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 15-12-2016

CHANGES IN SCHEDULE III OF REVISED GST DRAFT LAW
We have till now discussed the definition of supply along with provisions described in schedule I and schedule II, and in this update, we will discuss the changes and consequences in schedule III.
In the previous GST draft law, the persons to be registered were specified in schedule III but in revised GST law, those activities and transactions which are neither supply of goods nor supply of services have been listed in schedule III.
1. In the first entry of new GST draft law, services provided by an employee to the employer in the course of or in relation to

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ished under any law for the time being in force are also not considered as supply and no GST is leviable. It is worth observing that the earlier GST Draft did not incorporated such a provision. However, this provision is presently there under Service Tax Laws. Presently, definition of service excludes fees payable to a court or tribunal set up under a law for the time being in force. It appears that the Revised GST Law rectifies the anomaly of the old GST Draft.
3. In the new GST law, a new entry has been inserted whereby the functions or the services provided by any of the following will not be considered as supply:-
(a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of

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Report Card on GST Implementation; Government of India lost no time in implementing the GST so far; Discussions in GST Council have been very cordial and all decisions till now have been taken by consensus; Members of the Council are participating in the meetings with a very positive attitude and are working towards the roll-out of GST as per the deadline.
GST
Dated:- 14-12-2016

Press Information Bureau
Government of India
Ministry of Finance
14-December-2016 18:21 IST
As compared to the time taken in arriving at a consensus on the Constitutional Amendment Bill for GST, the subsequent events after the passing of the Bill indicate that the Government of India and the States have done remarkably well in taking all necessary steps for implementation of GST. The Report Card below indicates that Government of India lost no time in implementing the GST so far:
As soon as the President's assent was received on the Constitutional Amendment Act for GST on 8th September, 2016

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of the GST Council are:
i. The threshold limit for exemption from levy of GST would be ₹ 20 lakhs for normal States (Rs.10 lakhs for the Special Category States enumerated in Article 279A of the Constitution).
ii. The threshold for availing the Composition scheme would be ₹ 50 lakhs. Service providers would be kept out of the Composition scheme.
iii. To compensate States for 5 years for loss of revenue due to implementation of GST, the base year for the revenue of the State would be 2015-16 and a fixed growth rate of 14% will be applied to it.
iv. Approval of the Draft GST Rules on Registration; Payment; Return; Refund and Invoice, Debit & Credit Notes with the understanding that minor changes may be permitted with the approval of the Chairperson, if required, due to suggestions from the stakeholders or from the Law Department.
v. All entities exempted from payment of indirect tax under any existing tax incentive scheme would pay tax in the GST regime and the decis

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e back-end IT systems; testing and integration of GST front-end and back-end IT systems of all stakeholders; training of both Central and State tax officials; sensitization of the trade, industry and consumers. All efforts are being made to meet the necessary deadlines to ensure that GST is rolled out by 1 April 2017.
At present, agenda items pertaining to 'GST related draft laws' and 'Provisions for cross empowerment to ensure single interface under GST' are under consideration of the GST Council. 99 Sections the Model GST Law have already been considered by the Council and remaining Sections will be discussed in the next meeting of the Council scheduled for 22-23 December, 2016.
The discussions in GST Council have been very cordial and all decisions till now have been taken by consensus. Members of the Council are participating in the meetings with a very positive attitude and are working towards the roll-out of GST as per the deadline.
**********
DSM/KA
News – Press release

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Clarification required on some queries realted to GST
Query (Issue) Started By: – SANDESH SHINDE Dated:- 14-12-2016 Last Reply Date:- 14-12-2016 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir,
Request you to please provide some clarity on some queries related to GST.
1 Stock needs to be minimum exit March'17. WHY?? 2 Why should we bill in Feb and Mar to do stocking if landing prices are to come down due to reducing in Tax, will company compensate on this?? 3 Will there be a price parity in market, as inflitration will stop from other markets?? 4 Will Tax adjustments stop after GST or will they continue as this effects operating prices?? 5 Ambigiuity regarding Levied TAX structure on Different Products. 6 Sale & P

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Composition_Comparision_GST Vs. UP VAT
By: – Ashish Mittal
Goods and Services Tax – GST
Dated:- 14-12-2016

Composition Scheme Comparison Chart
Comparison of Provision Regarding Composition Scheme under Current U.P VAT Act,2008 VS Model GST Regime
S.No.
Basis
Under UP Act' 2008
Model GST Law
For Works Contractor
For Others
1
Governing Section
Section-6-Composition of tax liability
Section-9-Composition Levy
–
–
2
Eligibility
Any Person fulfilling T/o criteria (other than person engaged in Works Contract i.e. on works contractor no T/o Limit is applicable)
Person fulfilling T/O limit other than
1. Engaged in supply of services
2. Person engaged in interstate supply
3. Person making Non-Taxable Supply
4. E-Commerce Operator
5. All the taxable person has common PAN shall opt the scheme simultaneously
Spl. Point: T/o Limit Applicable in case of Work Contractor unlike in UP VAT Act.
Under Current UP VAT: Eligible (No T/o Limit)
Under GST:

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2)/08-U.P.Ordi.-37-2008-Order-(5)-2008 Dated 4th February, 2008]
For Manufacturer-2.50% (Min.)
Others-1% (Min.)
[Not less than 2.5%/1% as per Section-9 actual rate still to be specified]
Actual rate still to be notified but an floor rate being specified in the section itself
7
Penal Provision
–
If assessee not falling in the above Scheme and opts for the same the proper officer may after giving opportunity of being heard recover tax, interest and penalty of equal amount [As per Section 9(4)]thereon as recovery under GST
Officer may after applying principles of Natural Justice initiate penal action as specified
8
TRANSITIONAL PROVISIONS
–
–
–
–
8.1. Assessee shifting from Normal Tax Regime under Earlier law to Composition Scheme under GST
N.A
Allowed but the ITC of stock lying in the stock shall be paid by him before switching in composition scheme in GST
May apply if opted for composition scheme in GST Law
8.2. Assessee shifting from Composition Scheme under Earli

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he tax on purchases are to become cost then the price of real estate would tend to go high. In this situation would GST be a boon to the real estate sector or would be a challenge . Pls share your views in this regard.
Dated: 15-12-2016
Reply By Ashish Mittal as =
Hello Ganeshan Ji,
With regards to your Query, In context of real estates sector, taking about the inputs which are purchased by them as defined in Rule 2(K) CCR ' 2004, Presently no CCR is available for the same due to availment of abatement as provided by N/N-26/2012 provided by CG in lieu of power vested under Sec. 93 of F.A' 1994, wherein the real estate sector may apply abated rate @30% of taxable value but after fulfilling the condition that no CCR of inputs shall be availed by them. Now in Revised MGL also no ITC of inputs have been provided till date.[As per Section 17(4)(d) of Revised MGL] Also re-instated herewith for your ready reference.
Section 17 (4) Notwithstanding anything contained in sub-section

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CHANGES MADE IN SCHEDULE-II OF REVISED GST LAW
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 14-12-2016

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN:-
CHANGES MADE IN SCHEDULE-II OF REVISED GST LAW:-
Continuing the series of updates on the revised GST draft law, we had discussed on changes made in schedule I after amendments in the definition of Supply and the consequences of the same. Today we will discuss the changes in schedule II and implications of the same.
Schedule II prescribes such transactions which will be deemed to be supply of goods and services. There is not much change in this schedule. But it is worth noting that as per our previous discussion on supply and schedule I, the transactions without con

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ier law stated that on deregistration of business, the asset retained will also be termed as supply and GST was payable on the same. In the revised draft, this entry was removed from the schedule I due to which it seemed that no GST shall be payable on it. But again this entry has been retained in the schedule II resulting in taxability on this transaction. The entry 4(c) states that if a person ceases to be a taxable person, then retention of business assets will be termed as supply. This rule will be subject to the fact that the business is transferred as a going concern or a personal representative runs the business. In remaining all cases, such retention will be supply and GST will be payable on the same.
Another change made in the sch

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CHANGES IN DEFINITION OF SUPPLY AND SCHDEULE-I IN REVISED GST LAW
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 14-12-2016

As you are aware of the fact that revised draft GST law is published by the Government. Many changes have been made in the revised draft GST law in comparison to earlier draft GST law. If we compare the old draft GST law with the new revised draft GST law then we can study the changes which have been made and their impact on the trade and industry.
To start with we are discussing about the definition of “supply” given under revised GST draft law. The definition of “supply” given under section 3(a) of draft GST law. The first part of definition of revised GST law is inclusive as well as is simi

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o it. It implies that only those asset on which credit is taken are transferred without consideration then only it will be covered under GST.
Second entry in schedule I is a new entry wherein supply of goods or services to related person without consideration will be termed as "supply". Also, if you have separate registration under section 10 then also supply without consideration will be termed as “supply”. GST provides that every person has to take separate registration in each state. Hence, this entry intends to cover those transaction between separate registration though they are same person. The supply will be “without consideration” as he is same legal person but since separate registration is taken, hence it will be termed

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lated party or other establishment. All other import of service without consideration will not be termed as “deemed supply”. It is major deviation from earlier definition.
If we compare the schedule I in old draft GST law and schedule I in new revised draft GST law then only of “temporary transfer of business asset for private or non business use” has been deleted. This is big relief for trade and industry as it was creating havoc for industry. Similarly, entry of “asset retained after deregistration” is also deleted. To have a complete picture we will study schedule II in our next GST update.
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Scholarly articles for knowledge sharing by authors, experts, professiona

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SUPPLEMENTARY TAX INVOICE AND REVISED INVOICE IN GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 14-12-2016

Supplementary Tax Invoice
Supplementary tax invoice has not been defined under Model GST law. Supplementary tax invoice has to be issued by taxable person in case where any deficiency is found in a tax invoice already issued by a taxable person. Dictionary meaning of the term 'supplementary' is 'added to complete or make up a deficiency'. Thus, supplementary tax invoice is to be issued where any deficiency is found in a tax invoice issued already to supplement / remove such deficiency.
Details required to be shown
According to Rule 4 of draft GST Invoice Rules, a supplementary tax invoice and / o

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signature or digital signature of the supplier or his authorized representative.
Input Tax Credit
As per section 16(1) of Model GST law, no registered taxable person shall be entitled to the credit of any input tax in respect of any supply of goods and/or services to him unless he is in possession of tax invoice, debit note, supplementary invoice or such other taxpaying document as may be prescribed, issued by a supplier registered under the CGST/SGST or the IGST Act.
However, a taxable person who has received supplies from a supplier who is paying tax under composition levy scheme or supplying non-taxable goods and/or services cannot take input tax credit on the basis of a bill of supply.
Revised invoice
'Revised invoice' h

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credit of tax charged in the revised invoice.
The period covered for issuing of revised invoice is the period starting from the effective date of registration till the date of issuance of certificate of registration. Therefore, a registered taxable person cannot issue a revised invoice against the invoice issued by him after the date of issuance of certificate of registration.
Difference between a revised invoice and a supplementary invoice
Difference between a revised invoice and a supplementary invoice can be enumerated as follows:
Particulars
Revised Invoice
Supplementary Invoice
Meaning
Revised invoice may be issued by taxable person in relation to any invoice already issued by him.
Supplementary tax invoice has to be issued

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Communication of the provisional Identification Number and Password to dealers registered with VAT department for migration to GST from 16th December, 2016 to 31st December, 2016
JCTT/Policy/2016/751-769 Dated:- 14-12-2016 Circular
VAT – Delhi
DEPARTMENT OF TRADE AND TAXES
VYAPAR BHAWAN, I.P.ESTATE,
NEW DELHI-110002
No. JCTT/Policy/2016/751-769
Dated 14.12.2016
To
All dealers of Delhi.
Subject – Communication of the provisional Identification Number and Password to dealers registered with VAT department for migration to GST from 16th December, 2016 to 31st December, 2016
As you are aware that Goods and Services Tax is to be implemented from 1st April 2017 and we understand that as a Taxpayer you would like to continue

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nd Services Tax Portal on the link at https://www.gst.gov.in from 16th December, 2016 to 31st December, 2016.
A Taxpayer should complete the below mentioned steps for pre-registration:
Step 1 : Taxpayer has to enter the username and password as provided in the Table by the State VAT Authority.
Step 2 : Enter Mobile Number and Email ID of the Authorized Signatory of the business entity. All future correspondence from the GST Portal will be sent on this registered Mobile Number and Email ID.
Step 3: Different One Time Passwords will be sent on Mobile and Email details entered. Enter the OTP sent on Mobile and Email as provide.
Step 4 : Enter information and upload scanned images as mentioned in pre-Registration Form.
Please read the Use

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GST : WHAT IS IN STORE
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 13-12-2016

The GST Council has had six meetings so far. They plan big but perform short. On last three occasions, its meetings were scheduled for two days but concluded in just one day each. Their seriousness and lack of home work can be gauged from the very fact they have not even vetted the draft laws in last three sittings. Till yesterday's meeting, they could read down only first 99 provisions out of 195 sections of GST law. Moreover, IGST law and State's Compensation Bill are also there to be gone through.
Since the Bills have not been discussed fully, there is no question of their being presented before Parliament in the ongo

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l as financially. Already lot of people's money has flown so far into the making of GST law by various quarters, not just Government, GST's impact – positive or negative will affect economy, more so in post demonetization regime. With lesser time with every day passing by till September 2017, the date by which India needs to roll out GST, it will become challenging as well as risky for the nation. With next elections also narrowing down in time terms, Government's will may also be at test.
States and centre are locked on contentious issue of dual control, i.e., who will 'tax and monitor' whom. Further, in post demonetization scenario, amount of compensation has become an issue -States claim, and may be right in doing so

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ego of all partymen trying to show down each other. While centre can be blamed for improper management, opposition's non-agreement is also unwanted to large extent. It is not that there could be no solution. They should all agree, sooner the better or else 16th September will come after which all present indirect taxes which are to be subsumed in GST can not be levied and we can not also go back to old taxes unless constitutional changes are reversed. That would be suicidal.
Reply By Suryanarayana Sathineni as =
Dear Sir,
You are right and in the worst scenerio, they may take shelter under Section 20 of the Constitutional Amendment Act to overcome this problem.
As opined by you,Technically no more indirect taxes from that date. Bu

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GST Council meet inconclusive; Apr 1 target unlikely
GST
Dated:- 12-12-2016

New Delhi, Dec 11 (PTI) With the Centre and states again failing on Sunday to sort out contentious issue of dual control of assessees, the Goods and Services Tax (GST) rollout from April 1 next year is now looking virtually impossible.
The 6th meeting of the all-powerful GST Council was slated to decide on dual control of assesses but the two-day meeting was curtailed to half and even Sunday that issue couldn't be discussed because all the time was lost in going clause by clause of the voluminous draft legislations.
While Finance Minister Arun Jaitley did not categorically said that the April 1 target date would be missed, states like Kerala and

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Minutes of the 6th GST Council Meeting held on 11 December 2016
6th GST Council Meeting Dated:- 11-12-2016 GST Council – Minutes
GST
Minutes of the 6th GST Council Meeting held on 11 December 2016
The sixth meeting of the GST Council (hereinafter referred to as 'the Council') was held on 11 December 2016 in Pravasi Bharatiya Kendra, New Delhi under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon'ble Members of the GST Council who attended the meeting is at Annexure 1. The list of officers of the Centre, the States, the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2.
2. In his opening remarks, the Hon 'ble Chairperson of the Council welcomed all the members and informed that this meeting would discuss the carryover agenda of the fifth GST Council meeting, namely the draft Model CGST/SGST law. He added that before that, confirmation of the draft Minutes of

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Definitions): The Hon'ble Deputy Chief Minister of Gujarat observed that in respect of amendments in the definition of 'agriculture' and 'agriculturist', four to five States did not agree to the new definition and in this regard, the following aspects should be considered:
a. Instead of keeping activities out of the tax ambit, particular items should be exempted.
b. As the threshold for the registration was Rs. 20 lakh, a large number of smaller tax payers would remain out of the tax net and the proposed definition was so wide that even major farmers would be benefited, which was contrary to the principles of taxation.
c. Minor forest products like honey, timber and medicinal material were taxable under the V AT Act, and expansion in the scope of definition of 'agriculture' would result in loss of this income, and the tax base would narrow down.
d. The possibility of tax evasion and issues related to tax compliance would arise.
e. Processing activi

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include 'cooperative societies' along with 'individual' and 'HUF' within the meaning of 'agriculturist', the Hon'ble Chairperson had stated that the expression 'on his own account' would cover anyone who carried out agriculture on his own account, and that this would also cover cooperative societies. He further added that in Punjab, surplus land was diverted to the Scheduled Caste families and cooperative societies were formed giving a small share each to such families, and that they should not come within the purview of GST. The Hon'ble Chairperson observed that as this provision had already been discussed, it could be revisited after completing discussion on all the provisions of the Model GST law.
iv. Section 9(1) (Composition Levy): The Hori'ble Minister from Tamil Nadu observed that there was a typographical error in paragraph 11 (xiv) of the Minutes and the formulation 'as specified by the Council but not less than Rs. 50

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ed on Composition dealers only. He added that as the provision was not envisaged for other classes of dealers, there would be no level playing field.' The Council agreed to add the version of the Hon 'ble Minister from West Bengal in the Minutes.
vi. Paragraph 11 (xv): The Hon'ble Minister from Rajasthan stated that his version recorded in this paragraph should be replaced by the following: 'The Hon'ble Minister from Rajasthan stated that instead of having two rates of composition levy, manufacturers should be kept out of composition and the Centre should give them reimbursement of CGST component.' The Council agreed to amend the version of the Hon'ble Minister from Rajasthan.
vii. Paragraph l1(xv): The Hon'ble Deputy Chief Minister of Gujarat stated that the following should be additionally recorded as his version in this paragraph: 'The benefit of lump sum tax should be limited to the traders who were involved in the re-sale and should not be e

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nction could be made between goods and services because it was easier to check supply of goods than supply of services. The Commissioner, Commercial Taxes (hereinafter referred to as 'CCT') Karnataka explained that in services, there was a presumption of a possibility of fake billing to avail input tax credit if payment was not made by the buyer to the supplier, but in goods, it was easier to verify from records whether or not it had been received by the buyers. He added that if this provision was extended to goods, this could create problem for those suppliers who supplied to the government departments or supplies made by small enterprises who might not get payment within three months. He further added that at times quality testing etc. on goods could take longer than three months, and payment could be delayed on that account too. The Hon'ble Minister from West Bengal did not agree with this submission and observed that there could be fake bills for goods also. Shri. G.D.

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ated to definition of the term 'input service distributor'. The Council agreed to this suggestion.
x. Section 46(1) (Tax deduction at source): The Hon'ble Minister from West Bengal observed that during discussion on Section 46(1), he had suggested to define the term 'Governmental agencies' in paragraph 11(xxvii) and the Council had agreed to it but it was not recorded in the Minutes. He requested to add this in paragraph 11 (xxvii) of the Minutes. The Council agreed to this suggestion.
xi. Paragraph 13 of the Minutes: The Hon'ble Minister from West Bengal stated that this paragraph should also record that if the Union Law Ministry had any reservations or comments on certain provisions of the Model GST law as approved by the Council, then it must be brought to the notice of the Council and discussed accordingly before it was placed before the Parliament. The Hon'ble Chairperson observed that during legal vetting, normally only changes in language were mad

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t recorded in paragraph 18 of the Minutes, and requested to add the following as his version: 'The Hon'ble Minister from Rajasthan stated that cross-empowerment was required in all three Acts as otherwise the aim of single interface would not be achieved.' The Council agreed to add the version of the Hon'ble Minister from Rajasthan.
4. In view of the above discussions, for Agenda item 1, the Council decided to adopt the Minutes of the 5th meeting of the Council with the following changesi.
i. To replace the version of the Hon'ble Minister of Jammu & Kashmir recorded in paragraph 11 (i) of the Minutes with the following – 'The Hon 'ble Minister from Jammu & Kashmir suggested that Section 1 (2) may be amended so as to exclude Jammu & Kashmir by inserting the words “(except the State of Jammu and Kashmir)”. Jammu & Kashmir would then take the process of extending the law further as required by the Constitution of India and the Constitution of Jammu & Kashmir

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ale and should not be  extended to manufacturers. He suggested to consider one of the following two options: (i) Manufacturers should not be entitled to the benefit of lump sum tax; (ii) If it has to be given at all, it should be at the rate of 5% (2.5% CGST and 2.5% SGST) and that if the Government of India decided to extend relief, it should be given from its budgetary provision.'
v. Section 16(2) (Eligibility and conditions for taking input tax credit): To incorporate the decision in the Minutes that in Section 16(2), the time period for making payment shall be increased from three months to six months from the date of issuance of invoice and that this provision shall apply to both goods and services.
vi. To omit reference to definition of the term 'input service distributor' in paragraph 11 (xxiii) of the Minutes.
vii. To add in paragraph 11 (xxvii) of the draft Minutes that the Hon'ble Minister from West Bengal suggested to define the term 'Governmen

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e Hon'ble Minister from Rajasthan in paragraph 18 of the Minutes – 'The Hon'ble Minister from Rajasthan stated that cross-empowerment was required in all three Acts as otherwise the aim of single interface would not be achieved.'
Agenda Item 2: Approval of the Draft GST Law, the Draft IGST Law and the Draft GST Compensation Law:
5. The Hon'ble Chairperson observed that in the last meeting, the Council had discussed up to Section 46 of the draft Model GST (hereinafter referred to as the 'GST Law') law and he invited comments of the Members from Section 47 onwards. The Hon'ble Minister from West Bengal pointed out that there was certain contradiction between Section 4 and Section 5 of the GST Law in respect of the jurisdiction of the SGST officer and this needed to be addressed. The Hon'ble Chairperson stated that this could be taken up after the first reading of the whole GST Law.
6. A Section-wise discussion of the GST Law tonk place from Section

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of refund in regard to lack of unjust enrichment could be allowed up to a limit of Rs. 1 lakh. The Commissioner (GST), CBEC informed that the limit of Rs. 5 lakh was kept in view of the cost involved in obtaining certification for unjust enrichment. The Secretary to the Council stated that such a limit would help a large portion of refund to be directly credited to the applicant's account as was the case in Income Tax. The Hon'ble Chairperson stated that in GST, as there was a possibility to pass the tax burden to the consumer, there was a need to exercise caution and suggested to reduce the amount for self-certification to Rs two lakh or such amount as the Council may decide. He also suggested that in all Sections where amounts were mentioned, the same formulation should be used in order to avoid seeking approval of the Parliament for every change in the amount in future which could be a time taking exercise. The Council agreed to this suggestion.
iii. Section 48(3) (Refund

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refund was too long, and should be reduced to one year. Shri P.K. Mohanty, Consultant, CBEC explained that it was a trade friendly provision and it was in tune with the larger period allowed for demanding short payment of tax from the taxpayer. The Hon'ble Minister from Karnataka stated that in certain cases, the business practice could be such that not all documents might be put in place within one year and such businesses would be at a disadvantage if the period permitted for claiming refund was shortened. The Hon'ble Minister from Uttar Pradesh observed that while taxpayer would normally be keen to apply for refund at the earliest, at times due to some humanitarian reasons, a larger time period for claiming refund might be helpful. The CCT Gujarat pointed out that as the taxpayer would file the annual return by end of December following the end of the financial year, a period of two years for applying for refund was reasonable. The Hon'ble Chief Minister of Puducherry al

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n 'transporter' would cover all modes of transport and it would not require to be specified in the law, and if required, it could be kept in the GST Rules. After discussion, the Council agreed not to define the term 'transporter' in the GST Law.
vi. Section 54 (Period of retention of accounts): The Hon'ble Minister from Uttar Pradesh suggested that the period of retention of records be increased from five years to six years in order to harmonise it with the revisional power of the Chief Commissioner or Commissioner in Section 99(3). Shri Vivek Kumar, Additional Commissioner from Uttar Pradesh further explained that in case a proceeding of revision was started after five years and one month, no account might be available if the period of retention of record was kept as five years. The Hon'ble Minister from Uttar Pradesh suggested that alternately, the revisional power of the Chief Commissioner/Commissioner could be reduced to two years. The Hon'ble Minister

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ed out that the definition of 'electronic commerce operator' did. not exclude those entities who sold their goods through their own electronic portal. The Secretary to the Council explained that such entities would be required to pay the full tax instead of 1 % Tax Collection at Source (TCS). The Commissioner (OST Policy Wing), CBEC clarified that provisions of Section 56(1) shall not apply to entities selling their goods through their own electronic portal. The CCT Karnataka pointed out that Section 56(1) used the expression 'taxable supplies made through it' and not 'taxable supplies made by it' which implied that this provision was not applicable for entities supplying their goods through their own electronic portal. The Secretary to the Council observed that in order to avoid, confusion, it would be prudent to clarify that only aggregators would be treated as electronic commerce operators and stated that the Law Committee of officers could examine this issue

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Wing), CBEC explained that such a provision could be used where test report for a product was awaited as for example the value of busbar supplied to a State Electricity Board depended upon the copper content in the busbar. The supplier could seek provisional assessment till such time that the chemical test report was obtained. The CCT Telangana observed that there was an overlap in the concept of advance ruling and provisional assessment. The Consultant, CBEC clarified that advance ruling covered seven subjects whereas provisional assessment was limited to two subjects, namely value of goods and the applicable rate of tax. The Hon'ble Minister from Uttar Pradesh observed that the Commissioner should not have unlimited power to extend the period of provisional assessment and that he could have the power to extend it by another year. Shri Ram Tirath, Member (OST), CBEC clarified that Commissioner's power was needed but would be exercised in very limited cases such as for turnkey

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59(1) (Scrutiny of returns): The Hon'ble Minister from West Bengal observed that as scrutiny of returns was normally to be done electronically; it was contradictory to provide for scrutiny of returns by officers. He stated -that officers would need to do scrutiny only in certain cases. The Hon'ble Ministers from Assam and Tamil Nadu supported the existing provision and stated that officers needed to do scrutiny. The Hon'ble Chief Minister of Puducherry also supported the provision and observed that while the officer would carry out scrutiny, he would also be backed by the electronic system. The Secretary to the Council pointed out that the expression used in Section 59(1) was 'may', which implied that Officer would not always carry out scrutiny. CCT Karnataka further clarified that while the IT system would throw up the suspicious cases requiring scrutiny, the officer would take into account all factors and might issue notice for scrutiny in select cases, as per the

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istration would be informed. CCT Tamil Nadu observed that while audit would be limited to 5% of the taxpayers, the remaining taxpayers would be subject to scrutiny and both Central and State administrations could potentially give notice and then it would not be clear to whom the taxpayer had to send a reply. The Principal Secretary, Finance, Odisha stated that on account of such considerations, it was important to have a system where the taxpayer must know who was his officer. The Hon'ble Deputy Chief Minister of Gujarat observed that if the arrangement was that the one who gives notice first would handle all subsequent proceedings, then there could be a competition to issue notices which was not desirable. The Hon'ble Minister from Tamil Nadu emphasized that only Option II was workable for small taxpayers whereas the bigger taxpayers could face both the administrations. The Hon'ble Minister from Kerala suggested that the provisions like the present one, which had an implic

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ators as to whether CAG was entitled to audit quasi-judicial orders of the regulators. The Hon'ble Deputy Chief Minister of Delhi and Gujarat and the Hon'ble Minister from Uttar Pradesh also suggested to delete this provision. The Principal Secretary, Finance, Odisha observed that a tax audit was different from a CAG audit. The Hon'ble Minister from Bihar observed that CAG had power to audit only revenue of the Governments and not of the tax paid by the taxpayer. The Hon'ble Chairperson observed that the power of audit should only be in the relevant CAG Act, but as the office of CAG had also written to the GST Council on this subject, it would be separately discussed with the CAG. The Secretary to the Council stated that the CAG would be informed that the Council was not in favour of keeping this provision. The Council agreed to this suggestion.
xiv. Section 66 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or

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was too much distinction between penalty provisions, this could lead to undue discretionary power to the assessing officer. The Hon'ble Minister from Uttar Pradesh also supported the existing provision. The Council decided not to make any changes to the provision.
xv. Section 67 (1) (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any wilful misstatement or suppression of facts): The CCT, Telangana suggested to add the clause 'or tax arrived to the best of his judgement' in section 67 (1) to permit extrapolation of short levy where the tax payer was not furnishing the details. Shri Manish Kumar Sinha, Commissioner, GST Council explained that the settled legal position was that the tax department could raise demand only to the extent that it had evidence and that extrapolation would  not stand legal scrutiny. The CCT, Andhra Pradesh supported the suggestion of the CCT, Telangana

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cers but now some suggestions had come up from the States. He suggested to continue with discussion on the suggestions but to hasten the process.
xvi. Section 71 (Initiation of recovery proceedings): The Hon'ble Minister from West Bengal suggested that no discretion be given to the officer for recovery of revenue before a period of 90 days from the passing of an order. The CCT, Karnataka explained that in normal circumstances, no amount could be recovered before the expiry of the appeal period of 90 days, but in case of enforcement action, an officer could demand instantaneous payment as otherwise the evader could vanish as for example a truck caught with non-tax paid goods. The Hon'ble Chairperson also observed that there could be other circumstances where an officer could demand payment in a shorter period as for example, admitted tax liability, but reasons would need to be recorded in writing. The Council agreed not to make any changes to this provision.
xvii. Section 72

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provision of inspection of goods in movement, there was a discussion regarding the desirability of keeping check posts at the borders. The Hon'ble Minister from Kerala observed that check post for other purposes like State Excise, Transport Department, etc. would continue and that for the tax administration, there should be an automated check post for capturing data of Inter-State movement of goods. He added that such a facilitation centre could be at three or four main entry points of the State and that such a mechanism would help curb tax evasion in the Origin State. The CCT Telangana observed that presently, check posts performed four functions, namely recording movement of goods, verifying genuineness of transactions, tracking transit vehicles and collecting tax and penalty. He observed that functions like collection of tax and penalty might not be relevant in GST but check post might be required for other purposes. He pointed out that traders not interested in claiming input

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lly. In this view, instead of a check post, there could only be a 'reader' to record details of the movement of goods. The CCT Gujarat stated that multiple mobile checking of the same vehicles in different States could also cause harassment and to mitigate this, it could be provided that once a vehicle had exited the State of its Origin, no check would be done en route. The Hon'ble Minister from West Bengal supported the idea of no physical check post at the border and random check of way bills uploaded electronically at the State border. He further observed that check posts would continue for other agencies such as for checking over loading. The Hon'ble Minister from Tamil Nadu observed that there should be no checks at the borders and even a trade facilitation unit need not be kept at the border as this would lead to a vested interest in continuing with check posts. He added that common people looked at check posts as a source of corruption and delay and removal of ch

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nable uploading of data on the official electronic system when a conveyance crossed a highway. He added that if a physical data collection centre was created, this would amount to a check post. He further added that suspicious vehicles could be stopped anywhere for checking and this need not be at a State border. After discussion, the Council approved this Section in its present form.
xx. Section 81 (Power to arrest): The Additional Chief Secretary, Maharashtra observed that the power of arrest and of confiscation was not in tune with the concept of ease of doing business. The Hon'ble Minister from West Bengal stated that under VAT law, there was no power of arrest and that First Information Report (FIR) could be lodged only with the police and it might not be prudent to give such power to tax authority. He further added that the tax administration might not have the infrastructure to carry out arrest. The Hon'ble Minister from Tamil Nadu also supported this view. The Hon&#39

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draft GST Law, every arrest had to be approved by the Commissioner but he could authorise any officer, including an Inspector, to carry out such arrest. He also pointed out that the power to grant bail was only restricted to the Court. The Hon'ble Minister from Kerala and Uttar Pradesh suggested to raise the duty evasion threshold of arrest from Rs. 2 crore to Rs. 5 crore. The Hon'ble Chairperson pointed out that where evasion of tax was Rs. 2 crore, the value of offending goods or services would be approximately Rs. 20 crore. The Hon'ble Minister from Assam suggested to keep the evasion threshold at Rs. 50 lakh, as in his State, quantum of evasion would not be very high. The Hon'ble Chairperson suggested that in order to make the arrest provision less prone to abuse, arrest could be made for duty evasion of Rs. 2 crore or more but the arrest made for the duty evasion ranging from Rs. 2 crore to Rs. 5 crore should be bailable and beyond Rs. 5 crore should be non-bailab

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ated that there was no reason to side with the corrupt. After discussion, the Council noted that while most State VAT laws did not have the power to arrest and that no draconian power should be provided but arrest power could be allowed in limited cases as discussed above and within the guidelines as provided by the Hon'ble Chairperson. The Hon'ble Chairperson observed that Section 81 could be redrafted on the above basis and brought before the Council in the next meeting. The Hon'ble Minister from Tamil Nadu raised a point that the practice of certain community of charging Y2% or 1 % over and above the invoice value for community's welfare should not come within the ambit of the provision of tax collected but not deposited with the Government, as it was not a tax but a contribution to the community. It was noted that since such a practice of collection of additional amount was not in the nature of tax, there was no question of application of arrest provisions under Sec

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ed by the Council'. The Council agreed to this suggestion.
xxiii. Section 89(1)(a) (Detention and release of goods and conveyances in transit): The CCT Andhra Pradesh observed that this Section had no provision for issuing a detention order. The Hon'ble Chairperson observed that a provision could be added that while detaining a vehicle, a detention order shall be served on the owner or the driver of the vehicle. The Council agreed to this suggestion.
xxiv. Section 89(1)(c) (Detention and release of goods and conveyances in transit): The CCT, Andhra Pradesh suggested that language of Section 89(1)(c) should be slightly modified to also provide for issuance of notice before imposition of penalty. The Council agreed to this suggestion. The CCT Andhra Pradesh further suggested that this provision should provide for release of goods after furnishing a security. The CCT Gujarat clarified that this provision already existed in Section 89 (3).
xxv. Section 98(6) (Appeals to First

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re-deposit from 10% to 20% for all cases without providing for any discretion.
xxvi. The Hon'ble Chairperson observed that Section 100 (Constitution of the National Appellate Tribunal) onwards of the Model GST law shall be taken up in the next meeting.
7. For agenda item 2, the Council approved the provisions of Chapter X to Chapter XX (Sections 47 to 97) and Sections 98 and 99 of Chapter XXI subject to the decisions/observations as recorded below. It was also agreed that during legal vetting, if the Union Law Ministry had reservations or comments on certain provisions of the Model GST Law or suggested changes in the language of the law, these would be brought before the Council for discussion and approval before placing the draft law in the Parliament.
i.. Section 2(7), 2(8) and 2(106) (Definitions): To revisit the definition in view of the observations of the Hon 'ble Deputy Chief Minister of Gujarat in paragraph 3(ii) of the Minutes and of the Hon'ble Minister from

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oviso to this Section granting power to the Council not to allow refund in certain cases even when there was an inverted duty structure.
vi. Section 53(6) (Accounts and other records): To add the expression 'transporter' so that they are also made liable to maintain record of goods being transported by them.
vii. Section 54 (Period of retention of accounts): To amend the Section by increasing the period of retention of records from five years to six years.
viii. Section 56(1) (Collection of tax at source): To suitably clarify that only aggregators would be treated as electronic commerce operators and it would exclude those entities who sold their goods through their own electronic portal.
ix. Section 56(4), 56(5)J 56(6), 56(7), 56(8) and 56(10) (Collection of tax at source): To correct the typographical error and to incorporate the correct sub-section number.
x. Section 58 (Provisional Assessment): To amend the Section by reducing Commissioner's power to extend pr

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-bailable. The language of the provision to also convey that wherever there was a grey area relating to assessment, no arrest shall be made.
xvi. Section 85 (1) (xiv) (Offences and penalties): The committee of officers dealing with GST law to harmonize the provisions of Section 85 (1) (xiv) and Section 89(l)(a) of the Model GST law.
xvii. Section 85 (Offences and penalties): In addition to the reference of the specified amount of penalty, to further add 'or such amount as may be prescribed by the Council'
xviii. Section 89(1)(a) (Detention and release of goods and conveyances in transit): To amend the provision by adding that while detaining a vehicle, a detention order shall be served on the owner or the driver of the vehicle.
xix. Section 89(1)(c) (Detention and release of goods and conveyances in transit): To slightly modify the language to provide for issuance of notice before imposition of penalty.
xx. Section 98(6) (Appeals to First Appellate Authority): To amen

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Govt of India
Shri Arun Jaitley
2
Govt of India
Shri Santosh Kumar Gangwar
Name of the Minister
Charge
Finance Minister
Minister of State for Finance
3
Puducherry
Shri V. Narayanasamy
Chief Minister
4
Delhi
Shri Manish Sisodia
5
Gujarat
Shri Nitin Patel
6
Assam
Dr. Himanta B. Sarma
7
Bihar
8
Chattisgarh
9
Haryana
11
12
10 Himachal Pradesh
Jammu & Kashmir
Karnataka
13
Kerala
14
Madhya Pradesh
15
Punjab
16
Rajasthan
17
Tamil Nadu
18
Tripura
Shri K. Pandiarajan
Shri Bhanu Lal Saha
19
Uttar Pradesh
Dr. Abhishek Mishra
20
West Bengal
Dr. Amit Mitra
Shri Bijendra Prasad Yadav
Shri Amar Agrawal
Captain Abhimanyu
Shri Prakash Chaudhary
Shri Haseeb Drabu
Shri Krishna Byregowda
Dr. Thomas Isaac
Shri Jayant Malaiya
Shri Parminder Singh Dhindsa
Shri Rajpal Singh Shekhawat
Deputy Chief Minister
Deputy Chief Minister
Finance Minister
Minister, Commercial Taxes & Energy
Minister, Commercial Tax
Minister for Excise & Taxation
Minis

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vt of India
11
Govt of India
12
Govt of India
13
Govt of India
14
Govt of India
15
Govt of India
16
Govt of India
17
Govt of India
18
Govt of India
19
Govt of India
20
GST Council
21
22
23
GST Council
GST Council
GST Council
24
GST Council
25
GST Council
Ms. Thari Sitkil
26
27
GST Council
Andhra Pradesh
28 Andhra Pradesh
29
29
Andhra Pradesh
Shri G.D. Lohani
Shri Paras Sankhla
Shri D.S. Malik
Ms. Aarti Saxena
Shri Ravneet Khurana
Shri Siddharth Jain
Shri Mahar Singh
Shri Arun Goyal
Shri Shashank Priya
Shri Manish K Sinha
Ms. Himani Bhayana
Shri G.S. Sinha
Shri Kaushik TG
Shri J. Syamala Rao
Shri T. Ramesh Babu
Shri D. Venkateswara
Rao
30 Arunachal Pradesh Shri Marnya Ete
Arunachal Pradesh Shri Nakut Padung
Chief Economic Adviser
Member (GST), CBEC
Principal Commissioner, (AR),
CESTAT, CBEC
Additional Secretary, Dept. of
Revenue
Principal Commissioner, Customs,
Delhi, CBEC
Advisor (GST), CBEC
Joint Secretary (TRU), Dept

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Finance & Commercial Tax
Commissioner, Commercial Taxes
Additional Commissioner,
Commercial Taxes
Special Commissioner (Policy)
Joint Commissioner, Trade & Taxes
Assistant Commissioner, Trade &
Taxes
Commissioner, Commercial Tax
Commissioner, Commercial Taxes
Secretary (EA), Finance
Additional Chief Secretary
Commissioner, Excise & Taxation
Joint Commissioner, Excise &
Taxation
Commissioner, Excise & Taxation
OSD to Minister, Excise & Taxation
Joint Commissioner, Commercial
Taxes
Deputy Commissioner, Commercial
Taxes
Estd. 1949
S No
State/Centre
33
Bihar
JAYNA
34
Bihar
Shri Ajitabh Mishra
35
Chattisgarh
Shri Amit Agrawal
36
Chattisgarh
Ms. Sangeetha P
37
Chattisgarh
38
Delhi
39
Delhi
40
40
Delhi
Shri S.K. Kamra
41
Goa
Shri Dipak Bandekar
2344
Gujarat
Gujarat
Haryana
Dr. P.D. Vaghela
Ms. Mona Khandhar
Shri Sanjeev Kaushal
45
Haryana
Shri Shyamal Misra
46
Haryana
Shri Vidya Sagar
48
Himachal Pradesh Shri K.L. Negi
49
Jharkh

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r, Sales
Assistant Commissioner,
Taxes
Principal Secretary (Finance)
Commissioner, Commercial Taxes
Additional Commissioner, Commercial
Taxes
Secretary (Finance & Commercial Tax)
Commissioner, Commercial Taxes
ст
CHAIRMAN'S
INITIALS
JAYNA BOOK DEPOT
CHAIRMAN'S
INITIALS
MINUTE BOOK
Shri Rajeev Gupta
Shri Supreet Singh
Gulati
Shri Pawan Garg
Designation
Additional Chief Secretary (Taxation)
Advisor (GST)
Additional Commissioner
Assistant Commissioner
Secretary (Finance)
Commissioner, Commercial Taxes
Deputy Commissioner, GST
Additional Chief Secretary,
Commercial Taxes
Additional Commissioner, Taxation
Commissioner, Commercial Taxes
Deputy Commissioner, Commercial
Taxes
S No
State/Centre
Name of the Officer
68
Punjab
Shri Satish Chandra
69
Punjab
70
Punjab
71 Punjab
72
Rajasthan
Shri Praveen Gupta
73
Rajasthan
Shri Alok Gupta
74
Rajasthan
Shri Ketan Sharma
75
777
Tamil Nadu
76
Tamil Nadu
77
Telangana
Shri C. Chandramouli

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Transitional Provisions under Revised Model GST Law (Nov-2016)
By: – CSSANJAY MALHOTRA
Goods and Services Tax – GST
Dated:- 10-12-2016

Goods and Service Tax – “Transitional Provisions”
By: CS Sanjay Malhotra (Practising Company Secretary / Indirect Tax Expert)
Goods and Service Tax will bring in Business Transformation; hence it's important to understand the Transitional Provisions to ensure that the proposed tax system takes care of existing tax credits, payments and should not be a TAX COST for the assessee's.
Due care has to be taken in shift over from Present set of Indirect Tax system to GST Regime so that the required compliances shall be complied with and taxes paid under present taxation system should be rolled over in GST Law.
Appointment of Officers under GST Act (Section 165) of Model GST Law provides that all the officers appointed under Central / State Laws relating to Taxes shall be deemed to have been appointed as GST Officers under the respective Act

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y Forward of CENVAT Credit in Return to be allowed as Tax Credit in GST (Section 167)
* Registered Taxable person other than a person opting to pay Tax under Composition Levy shall be allowed to take credit of CENVAT / VAT / Entry Tax as available on the day immediately preceding the day on which GST Act comes into force. Tax credit has to be taken as opening balance in Electronic Ledger i.e. online Input Tax Credit Ledger in GSTIN.
* CENVAT Credit available under Excise and Service Tax as on date preceding to GST Act date shall be carried forward in Electronic Ledger under the head “CGST” and Vat / Entry Tax credit under the head “SGST”.
* Tax Credit has to be carry forward provided the same is admissible both under present and in GST law.
* Refund of CST if any under the earlier law shall be refunded as per the provisions of earlier law and no credit / refund is eligible under GST.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Unavailed

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tronic Ledger under the head “CGST” and VAT /Entry Tax credit under the head “SGST”.
* Tax Credit is allowed provided the same is admissible both under present and in GST law.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations (Section 169)
Any person who is into the sales of Exempted goods / Provision of Exempted Services is exempted from Registration under the present Law. Under GST, these persons besides First Stage & Second Stage Dealer, Registered Importer, Providing Works Contract Services, shall have to get himself registered under the GST Act if the products / services come out of exemption or is subject to levy under the GST Act.
Such registered persons under the GST Act shall be eligible to claim Input Tax credit in respect of Inputs, WIP held in stock , Inputs contained in final products as on the date immediately preceding to the D

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cuments shall be recorded in books of accounts within 30 Days from the date Implementation of GST Act.
Credit of eligible duties and taxes on inputs held in stock to be allowed to a Taxable person switching over from Composition scheme (Section 172)
* Any Registered person who is paying tax in the capacity of Composite Tax Payer at a fixed rate or fixed amount under the present tax law of Centre / State shall be eligible to take input Tax credit in Electronic Credit Ledger in respect of Inputs, WIP held in stock, input contained in Finished Goods as on the date immediately preceding to the Date from which GST Act comes into force.
* Tax Credit is allowed provided the same is admissible both under present and in GST law.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Exempted Goods Returned to Place of Business in GST regime(Section 173)
* No Tax shall be payable by the person returning the exempted goods provided the said goods are cleared n

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Acts.
Inputs removed for job work and returned on or after the appointed day (Section 175)
* In case Inputs as such or removed for Job work after partially processing under the provisions of present tax law for further processing, testing, repair, etc and are returned after processing within a period of 6 months or extended period of 2 months from the date on which GST Act comes into force, then NO Tax shall be payable.
* Tax shall be payable by manufacturer if the inputs are not received back within a period of 6 months or extended period from the date when GST comes into force OR Tax is to be paid by Job Worker if the goods after processing are returned back after a period of 6 months after the GST enactment date.
* If registered person shows sufficient cause, then the period of 6 months may be extended by another 2 months by the competent authority.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Semi-finished Goods removed for job work a

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ed under respective CGST and SGST Acts.
Finished Goods removed for job work and returned on or after the appointed day (Section 177)
* In case finished goods are removed for carrying out certain processes not amounting to manufacture under the provisions of present tax law and are returned after processing within a period of 6 months from the date on which GST Act comes into force, then NO Tax shall be payable.
* Tax shall be payable by manufacturer if the inputs are not received back within a period of 6 months from the date when GST comes into force OR Tax is to be paid by person returning the goods if the goods after processing are returned back after a period of 6 months after the GST enactment date.
* If registered person shows sufficient cause, then the period of 6 months may be extended by another 2 months by the competent authority.
* Manufacturer has the option as available under the earlier law to remove goods from Job worker premises on payment of duty in domestic m

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y under GST Act.
* Such Credit Note / Supplementary Invoice shall be deemed to have been issued as document in respect of Inward supply under GST Act.
* Provided that the taxable person shall be allowed to reduce his tax liability on account of issue of the said invoice or credit note only if the recipient of the invoice or credit note has reduced his input tax credit corresponding to such reduction of tax liability.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Pending Refund Claims to be disposed of under earlier Law (Section 179)
* Claim for Refunds submitted by any taxable person in earlier law in respect of Tax/Duty/Interest or any other amount shall be refunded as per the then provisions of Tax laws and any amount accruing to him shall be paid in cash.
* If the claim is fully or partially rejected, then the amount so rejected shall stands to lapse.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
R

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s recoverable on account of any appeal, revision; review or reference shall be recoverable as Tax arrears and shall not be admissible as input tax credit under this Act.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Finalisation of proceedings relating to Output Tax Liability (Section 183)
* Every proceeding initiated under any appeal, revision, review or reference shall be disposed off in accordance with the provisions of earlier law and any amount stands accrue to the person shall be paid in Cash and ANY amount stands recoverable on account of any appeal, revision; review or reference shall be recoverable as Tax arrears and shall not be admissible as input tax credit under this Act.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings (Section 184)
* Where any duty / interest / penalty or any other amount is de

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on in Return furnished under earlier law, the same shall be refunded to him in Cash or as per the provisions of earlier act.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Treatment of long term construction / works contracts (Section 186)
* Tax is applicable at the rates specified under GST Act in respect of Supply of Goods and services provided after the enactment of GST Act even if the agreement / contract is executed prior to introduction of GST Act.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Progressive or periodic supply of goods or services (Section 187)
* No Tax is payable if the payment has been received and tax has been deposited prior to the introduction of GST Act in respect of Supply of Goods and services after the enactment of GST Act.
* The above provisions shall be incorporated under respective CGST and SGST Acts.
Taxability of Goods / Services in Certain Cases (Section 188-189)
*

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goods lying at his place subject to the following conditions:-
* (i) the agent is a registered taxable person under this Act;
* (ii) both the principal and the agent declare the details of stock of goods lying with such agent on the date immediately preceding the appointed day in such form and manner and within such time as may be prescribed in this behalf;
* (iii) the invoices for such goods had been issued not earlier than twelve months immediately preceding the appointed day; and
* (iv) the principal has either reversed or not availed of the input tax credit in respect of such goods.
Tax paid on Capital Goods lying with Agents to be allowed as Credit under SGST Law (Section 193)
* This provision shall be incorporated only under respective SGST Acts.
* Input Tax credit is admissible to the Agent in respect of CAPITAL goods lying at his place subject to the following conditions:-
* (i) the agent is a registered taxable person under this Act;
* (ii) both the principal

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Act and are further not received back within a period of 6 months from the date when GST comes into force.
* If registered person shows sufficient cause for delay, then the period of 6 months may be extended by another 2 months by the competent authority.
* The above provisions shall be incorporated only under SGST Acts.
Deduction of Tax at Source (Section 196)
* Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under the earlier law and has also issued an invoice for the same before the enactment of GST act, NO deduction of tax at source shall be made by the deductor under the said section where payment to the said supplier is made on or after the enactment of GST Act.
Transitional provisions for availing CENVAT credit in certain cases (Section 197)
* Wherever CENVAT Credit has been reversed due to non-payment to the supplier within a period of 3 months, the same can be reclaimed subsequently upon payment of considerat

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CREDIT NOTE AND DEBIT NOTE UNDER GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 9-12-2016

Credit Note
As per section 2(35) read with section 24(1) of model GST law, where a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that a tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply, the taxable person, who has supplied such goods and/or services, may issue to the recipient a credit note containing prescribed particulars. (Refer Q. No. 24).
Accordingly,
* credit note has to be issued by taxable person who had earlier issued a tax invoice for supply of any goods and/or services
* credit note has to

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date of filing of the relevant annual return for the financial year,
whichever is earlier.
It may be noted that annual return is required to be filed under section 30(2) on or before 31st December of the financial year following the relevant financial year. In cases where such annual return is filed after 30th September, the time limit for issuing credit note will be 30th September only.
According to proviso to section 24(1), no credit note shall be issued by the taxable person if the incidence of tax and interest on such supply has been passed by supplier to recipient.
Debit Note
As per section 2(36) read with section 24(2) of the model GST law, where tax invoice has been issued for supply of any goods and/or services and the taxa

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ction 24(2) of Model GST law, time of issue of debit note shall be, on or before the thirtieth day of September following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.
Accordingly, time of issue of debit note shall be,
* on or before the thirtieth day of September following the end of the financial year in which such supply was made, or
* the date of filing of the relevant annual return for the financial year,
whichever is earlier.
It may be noted that annual return is required to be filed under section 30(2) on or before 31st December of the following financial year. In cases where such annual return is filed after 30th September, the time li

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BILL OF SUPPLY UNDER GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 8-12-2016

What is Bill of Supply
As per proviso to section 23 of Model GST Law a registered taxable person supplying non-taxable goods and/or services or paying tax under the provisions of section 8 in relation to composition levy shall issue, instead of a tax invoice, a bill of supply( in lieu of tax invoice) containing the prescribed particulars.
Accordingly, for a bill of supply, following points are relevant:
* bill of supply to be issued by registered taxable person supplying non-taxable goods and/or services.
* bill of supply to be issued by registered taxable person paying amount under the composition levy.
* bill of supply containing prescribed particulars is issued in lieu of tax invoice.
* bill of supply will also be issued by unregistered persons who are not required to pay GST.
* bill of supply will generally contain the similar particulars as in case of tax i

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ay be required to issue bill of supply where the recipient of the goods or services requires such bill.
Consolidated Bill of Supply
According to proviso to Rule 3 of draft GST Invoice Rules, a consolidated bill of supply shall be prepared by the registered taxable person at the end of each day in respect of all such supplies where the bill of supply has not been issued and value of the goods or services supplied is less than one hundred rupees.
Accordingly, consolidated bill of supply shall be prepared by the registered taxable person-
* at the end of each day,
* in respect of all supplies for value of less than rupees one hundred (Rs. 100),
* consolidated bill of supply will only cover supplies where bill of supply has not been issued.
Reply By JAIPRAKASH RUIA as =
Dear Sir,
Good Article.
1) Whether Zero rated supply like EXPORT will be treated as non taxable goods.
2) Currently the service tax is based on negative list and approx. 119 code issued by dept. are not rel

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s, namely-
* Bond Route
* Refund Route
2) Currently the service tax is based on negative list and approx. 119 code issued by the Department are not relevant. Whether Department has issued service accounting code for many services not covered in the list of 119 codes.
The Service Accounting Codes (SAC) have not been declared in the Model GST Law or Revised GST Law issued by the GST Council so far. Yes, there is a code No. 120 for all residual services not falling under 119 services.
Thanks & Regards,
CA Sanjay Kumawat
Dated: 10-12-2016
Reply By Dr. Sanjiv Agarwal as =
Dear Sir,
Reverse charge on goods under GST
The Central or a State Government may, on the recommendation of the GST Council, by notification, specify categories of supply of goods and/or services the tax on which is payable on reverse charge basis and the tax thereon shall be paid by the recipient of such goods and/or services and all the provisions of this Act shall apply to such person as if he is the person

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RECOVERY OF TAX UNDER MODEL GST LAW
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 6-12-2016

Payment of tax due
Section 71 of the Model GST Law ('Law' for short) provides that any amount payable by a taxable person in pursuance of an order passed under the Act shall be paid by such person within a period of 90 days from the date of service of such order. The proper officer is at his discretion to direct to pay the said amount within such short period as may be specified by him in the interest of revenue. The reasons for such order shall be recorded in writing.
Recovery of tax
Section 72 provides that if the taxable person fails to pay the tax payable consequent on any order within 90 days, the proper officer shall proceed to recover the amount. The amount may be recovered by any one of the following methods-
* The proper officer may deduct or may require any other specified officer to deduct the amount so payable from any money owing to such p

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ny or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made payment is made, notwithstanding any rule, practice or requirement to the contrary;
* If such person fails to make the payment he shall be deemed to be a defaulter in respect of the amount specified in the notice and all the consequences of this Act or rules made there under shall follow;
* The officer issuing such a notice may amend or revoke such notice at any timeor from time to time or extend the time for making any payment in pursuance of the notice;
* Any person making any payment in compliance with a notice shall be deemed to have made payment under the authority of the person in default;
* Such payment being credited to the appropriate Government shall be deemed to constitute a good and sufficient discharge of the liability of such person to the person in default to the extent of the amount s

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f the property remains unpaid for a period of 30 days may sell the property and satisfy the amount for the dues and the remaining amount, if any, may be paid to the taxable person;
* The proper officer may issue a certificate to the District Collect to recover the amountas if it is an arrear of land revenue;
* The proper officer may file an application to the appropriate Magistrate and such Magistrate shall proceed to recover from such person the amount specified there under as if it were a fine imposed by him;
Section 72(2) provides that where the terms of any bond or other instrument executed under the Act or any rules or regulations made there under provide that any amount due under such instrument may be recovered without prejudice to any other mode of recovery;
Section 72(3) provides that where any amount of tax, interest or penalty is payable, the proper Officer of SGST, during the course of recovery of SGST arrears, may recover the amount from the said person as if it were

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not exceeding 24, subject to payment of interest with such restrictions and conditions as may be prescribed. Where there is default in payment of any installment on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery.
Transfer of property to be void
Section 75 provides that if a taxable person creates a charge on or parts with the property belonging to him or in his possession, in favor of any other person with the intention to defraud the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said person. Such charge or transfer shall not be void if it is made for adequate consideration and without notice of the pendency of such proceedings under this Act or without notice of such tax or other sum payable by the said person or with the previous permission of the prop

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nt and the recovery proceedings may be continued from the stage at which such proceedings stood immediately before such disposal;
* Where such amounts are reduced in such appeal, revision or in other proceedings, it is not necessary for the Commissioner to serve a fresh notice of demand;
* The Commissioner may inform of such reduction to him and to the appropriate authority with whom recovery proceedings is pending;
* The recovery proceedings may be continued in relation to the amount so reduced from the state at which such proceedings stood immediately before such disposal.
Reply By Ganeshan Kalyani as =
Nice article sir.
Section 72 (3) provides that the proper officer of CGST can collect tac due by the assessee under SGST and credit it to the the appropriate govt. How the said provision would be implemented in practice.
Dated: 7-12-2016
Reply By MARIAPPAN GOVINDARAJAN as =
Rules are to be made in this regard by both Central and State Governments.
Dated: 8-12-2016
S

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Constitutional compulsion to roll out GST from Sep next: FM
GST
Dated:- 3-12-2016

New Delhi, Dec 2 (PTI) Citing constitutional compulsion, Finance Minister Arun Jaitley sought to drive home the point that the Goods and Services Tax has to roll out before September 16 next year as the existing indirect taxes will come to an end by then and it would not be possible to run the country without revenue collection.
He made a pitch for widening the tax base, saying efforts are on to make taxation process far simpler and make rates more reasonable.
For instance, he said, the GST Council is deliberating on ways to reduce the taxation process, including assessment by tax officials.
"Today, each person gets assessed thrice, in ea

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Transaction between such principal and agent
Query (Issue) Started By: – yogesh Panchal Dated:- 3-12-2016 Last Reply Date:- 3-12-2016 Goods and Services Tax – GST
Got 2 Replies
GST
Dear All Expert,
Please guide,
Meaning and scope of “supply” Comparative view under revised model GST law vis-à-vis earlier model GST law. Which published on 26th November 2016.
earlier model GST law term “supply” is contained in sub section (2)(a) of section 3 of the model CGST/SGST act,2016 as

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