Author: admin_gst

Definitions
Section 2
Bill
PRELIMINARY
Draft – Integrated Goods And Services Tax Act, 2016 ( IGST Act) – Draft June 2016
2. Definitions
(1) In this Act, unless the context otherwise requires,-
(a) “appropriate State”, in relation to a taxable person, means that State where he is registered or liable to be registered under section 19 of the Central Goods and Services Tax Act, 2016.
Explanation: For the purpose of this Act, “State” includes Union Territory with Legislature.
(b) “Government” means the Central Government;
(c) “Integrated Goods and Services Tax” (IGST) means tax levied under this Act on the supply of any goods and/or services in the course of inter-State trade or commerce.
Explanation 1.- A supply of goods

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

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Valuation in certain cases
Rule 8
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
8. Valuation in certain cases
(1) Pure Agent
(a) Notwithstanding anything contained in these rules, the expenditure or costs incurred by the service provider as a pure agent of the recipient of service, shall be excluded from the value of the taxable service if all the following conditions are satisfied, namely:-
(i) the service provider acts as a pure agent of the recipient of service when he makes payment to third party for the goods and/or services procured;
(ii) the recipient of service receives and uses the goods and/or services so procured by the servi

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services procured by the service provider from the third party as a pure agent of the recipient of service are in addition to the services he provides on his own account.
Explanation.- For the purposes of this sub-rule, “pure agent” means a person who-
(a) enters into a contractual agreement with the recipient of service to act as his pure agent to incur expenditure or costs in the course of providing taxable service;
(b) neither intends to hold nor holds any title to the goods and/or services so procured or provided as pure agent of the recipient of service;
(c) does not use such goods and/or services so procured; and
(d) receives only the actual amount incurred to procure such goods and/or services.
(2) Money Changer
The value of

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Rejection of declared value
Rule 7
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
7. Rejection of declared value
(1)(a) When the proper officer has reason to doubt the truth or accuracy of the value declared in relation to any goods and/or services, he may ask the supplier to furnish further information, including documents or other evidence and if, after receiving such further information, or in the absence of any response from such supplier, the proper officer still has reasonable doubt about the truth or accuracy of the value so declared, it shall be deemed that the transaction value of such goods and/or services cannot be determined und

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officer shall intimate the supplier in writing the grounds for doubting the truth or accuracy of the value declared in relation to the supply of goods and/or services by such supplier and provide a reasonable opportunity of being heard, before taking a final decision under sub-rule (1).
(3) If after hearing the supplier as aforesaid, the proper officer is, for reasons to be recorded in writing, not satisfied with the value declared, he shall proceed to determine the value in accordance with the provisions of rule 4 or rule 5 or rule 6, proceeding sequentially.
Explanation.- For removal of doubts, it is hereby declared that this rule by itself does not provide a method for determination of value. It provides a mechanism and procedure for r

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Residual method
Rule 6
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
6. Residual method
Where the value of the goods and/or services cannot be determined under the provisions of rule 5, the value shall be determined using reasonable means consistent with the principles and general provisions of these rules.
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulatio

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Computed value method
Rule 5
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
5. Computed value method
If the value cannot be determined under rule 4, it shall be based on a computed value which shall include the following:-
(a) the cost of production, manufacture or processing of the goods or, the cost of provision of the services;
(b) charges, if any, for the design or brand;
(c) an amount to

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Determination of value of supply by comparison
Rule 4
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
4. Determination of value of supply by comparison
(1) Where the value of a supply cannot be determined under rule 3, the value shall be determined on the basis of the transaction value of goods and/or services of like kind and quality supplied at or about the same time to other customers, adjuste

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Methods of determination of value
Rule 3
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
3. Methods of determination of value
(1) Subject to rule 7, the value of goods and/or services shall be the transaction value.
(2) The “transaction value” shall be the value determined in monetary terms.
(3) Where the supply consists of both taxable and non-taxable supply, the taxable supply shall be deemed

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Definitions
Rule 2
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
2. Definitions
(1) In these rules, unless the context otherwise requires:
(a) "Act" means the IGST Act or the CGST Act or, as the case may be, the SGST Act;
(b) “goods of like kind and quality” means goods which are identical or similar in physical characteristics, quality and reputation as the goods being valued, an

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Short title, commencement and application.
Rule 1
Bill
GST Valuation Rules
GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016
GST Valuation (Determination of the Value of Supply of Goods and Services)
Rules, 2016
1. Short title, commencement and application.
(1) These rules may be called the GST Valuation (Determination of Value of Supply of Goods and Services) Rules, 2016.
(2) These Rules shall come into force on the da

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Classes of officers under the State Goods and Services Tax Act
Section 4-
Bill
ADMINISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
4. Classes of officers under the State Goods and Services Tax Act
(1) There shall be the following classes of officers and persons under the State Goods and Services Tax Act namely.
a) Commissioner of SGST,
b) Special Commissioners of SGST,
c) Additional Commissioners of SGST,
d) Joint Commissioners of SGST,
e) Dep

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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
SCHEDULE IV
Bill
SCHEDULES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
SCHEDULE IV
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
(Indicative List)
1. Services provided by a Government or local authority to another Government or local authority excluding the following services:
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services;
(ii) services in relation to an aircraft o

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43 G of the Constitution;
(iii) health care; and
(iv) education.
4. Services provided by Government towards-
(i) diplomatic or consular activities;
(ii) citizenship, naturalization and aliens;
(iii) admission into , and emigration and expulsion from India;
(iv) currency , coinage and legal tender , foreign exchange;
(v) trade and commerce with foreign countries , import and export across customs frontiers , interstate trade and commerce; or
(vi) maintenance of public order.
5. Any services provided by a Government or a local authority in the course of discharging any liability on account of any tax levied by such Government or authority.
6. Services provided by a Government or a local authority by way of –
(i) toleratin

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tion to import or export of cargo on payment of Merchant Overtime Charges (MOT).
8. Services provided by Government or a local authority by way of-
(i) registration required under any law for the time being in force; or
(ii) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, required under any law for the time being in force.
Definitions:
1. Governmental Authority means a board, or an authority or any other body established with 90% or more participation by way of equity or control by Government and set up by an Act of the Parliament or a State Legislature to carry out any function entrusted to a municipality under article 243W or a Panchayat under article 24

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LIABILITY TO BE REGISTERED
SCHEDULE III
Bill
SCHEDULES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
SCHEDULE III
LIABILITY TO BE REGISTERED
1. Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds [Rs nine lakh]:
1. Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds [Rs. four lakh]:
[This threshold of four lakh will apply only if the taxable person conducts his business in any of the NE States including Sikkim.]
Provided th

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license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day.
3. Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee, or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
4. Notwithstanding anything contained in paragraph 1 and 2 above, in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies by an order of a High Court, the transferee shall be liable to be registered, where required, w

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to deduct tax under section 37;
(vi) persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise, irrespective of the threshold specified under paragraph 1;
(vii) input service distributor;
(viii) persons who supply goods and/or services, other than branded services, through electronic commerce operator, irrespective of the threshold specified in paragraph 1;
(ix) every electronic commerce operator, irrespective of the threshold specified in paragraph 1;
(x) an aggregator who supplies services under his brand name or his trade name, irrespective of the threshold specified in paragraph 1; and
(xi) such other person or class of persons as may be notified by the Central Governme

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MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES
SCHEDULE II
Bill
SCHEDULES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
SCHEDULE II
MATTERS TO BE TREATED AS SUPPLY OF GOODS OR SERVICES
1. Transfer
(1) Any transfer of the title in goods is a supply of goods.
(2) Any transfer of goods or of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services.
(3) Any transfer of title in goods under an agreement which stipulates that property in goods will pass at a future date upon payment of full consideration as agreed, is a supply of goods.
2. Land and Building
(1) Any lease, tenancy, easement, licence to occupy land is a supply of services.
(2) An

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ness are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services.
(3) Where any goods, forming part of the business assets of a taxable person, are sold by any other person who has the power to do so to recover any debt owed by the taxable person, the goods shall be deemed to be supplied by the taxable person in the course or furtherance of his business.
(4) Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immedi

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competent authority" means the Government or any authority authorized to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:-
(i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972; or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority;
(2) the expression "construction" includes additions, alterations, replacements or remodeling of any existing civil structure;
(c) temporary transfer or permitting

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MATTERS TO BE TREATED AS SUPPLY WITHOUT CONSIDERATION
SCHEDULE I
Bill
SCHEDULES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
SCHEDULE I
MATTERS TO BE TREATED AS SUPPLY WITHOUT CONSIDERATION
1. Permanent transfer/disposal of business assets.
2. Temporary application of business assets to a private or non-business use.
3. Services put to a private or non-business use.
4. Assets retained after deregistration.
5. Supply of goods and / or services by a tax

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Deduction of tax source
Section 162E
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
162 E. Deduction of tax source
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 appointed day, no deduction of tax at source under section 37 shall be made by the deductor under the said section where payment to the

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Goods sent on approval basis returned on or after the appointed day
Section 162D
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
162D. Goods sent on approval basis returned on or after the appointed day
Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if su

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Treatment of branch transfers
Section 162C
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
162C. Treatment of branch transfers
Notwithstanding anything to the contrary contained in this Act, any amount of input tax credit reversed prior to the appointed day shall not be admissible as credit of input tax under this Act.
(Only in SGST Law)
–
Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, T

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Tax paid on capital goods lying with agents to be allowed as credit
Section 162B
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
162B. Tax paid on capital goods lying with agents to be allowed as credit
Where any capital goods belonging to the principal are lying at the premises of the agent on the appointed day, the agent shall be entitled to take credit of the tax paid on such capital goods subject to fulfillment of the followin

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Tax paid on goods lying with agents to be allowed as credit
Section 162A
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
162A.Tax paid on goods lying with agents to be allowed as credit
Where any goods belonging to the principal are lying at the premises of the agent on the appointed day, the agent shall be entitled to take credit of the tax paid on such goods subject to fulfilment of the following conditions:
(i) the agent is a

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Credit distribution of service tax by ISD
Section 162
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
162. Credit distribution of service tax by ISD
Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act even if the invoice(s) relating to such servi

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Treatment of retention payments
Section 161
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
161. Treatment of retention payments
Notwithstanding anything contained in section 12 and 13, no tax shall be payable on the supply of goods and/or services made before the appointed day where a part consideration for the said supply is received on or after the appointed day, but the full duty or tax payable on such supply has already been

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Progressive or periodic supply of goods or services
Section 160
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
160. Progressive or periodic supply of goods or services
Notwithstanding anything contained in section 12 and 13, no tax shall be payable on the supply of goods and/or services made on or after the appointed day if the consideration for the said supply has been received prior to the appointed day and the duty or tax paya

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Treatment of long term construction / works contracts
Section 159
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
159. Treatment of long term construction / works contracts
The goods and/or services supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act.
(CGST Law)
The goods and/or services supplied on or after the appointe

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Treatment of the amount recovered or refunded pursuant to revision of returns
Section 158
Bill
TRANSITIONAL PROVISIONS
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
158. Treatment of the amount recovered or refunded pursuant to revision of returns
(1) Where any return, furnished under the earlier law, is revised and if, pursuant to such revision, any amount is found to be recoverable from the taxable person, the same shall be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act.
(CGST Law)
(1) Where any return, furnished under the earlier law, is revised and if, pursuant to such revision, any amount is found to be recovera

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