Author: admin_gst

Tax invoice
Section 23
Bill
TAX INVOICE, CREDIT AND DEBIT NOTES
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER- VII
TAX INVOICE, CREDIT AND DEBIT NOTES
23. Tax invoice
A registered taxable person supplying,-
(i) taxable goods shall issue, at the time of supply, a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed;
(ii) taxable services shall issue a tax invoice

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Revocation of cancellation of registration
Section 22
Bill
REGISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
22. Revocation of cancellation of registration
(1) Subject to such conditions and in such circumstances as may be prescribed, any registered taxable person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thir

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Cancellation of registration
Section 21
Bill
REGISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
21. Cancellation of registration
(1) The proper officer may, either on his own motion or on an application filed, in the prescribed manner, by the registered taxable person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where, –
(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business; or

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gistration under sub-section (3) of section 19 has not commenced business within six months from the date of registration.
(3) Where any registration has been obtained by means of fraud, wilful misstatement or suppression of facts, the proper officer may cancel the registration with retrospective effect, subject to the provisions of section 29.
(4) The proper officer shall not cancel the registration without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.
(5) The cancellation of registration under this section shall not affect the liability of the taxable person to pay tax and other dues under the Act for any period prior to the date of cancellation whether or not such tax and other du

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Amendment of registration
Section 20
Bill
REGISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
20. Amendment of registration
(1) Every registered taxable person shall inform the proper officer of any changes in the information furnished at the time of registration, or that furnished subsequently, in the manner and within such period as may be prescribed.
(2) The proper officer may, on the basis of information furnished under sub-section (1) or as asc

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Special provisions relating to casual taxable person and non-resident taxable person
Section 19A
Bill
REGISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
19A. Special provisions relating to casual taxable person and non-resident taxable person
(1) The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for a period of ninety days from the effective date of registration.
Provided that the proper officer may, at the request of the said taxable person, extend the aforesaid period of ninety days by a further period not exceeding ninety days.
(2) Notwithstanding anything to the contrary contained in this Act, a casual taxable person or a non

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Registration
Section 19
Bill
REGISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER – VI
REGISTRATION
19. Registration
(1) Every person who is liable to be registered under Schedule III of this Act shall apply for registration in every such State in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
Provided that if the person, other than an Input Service Distributor, is registered under an earlier law, it shall not be necessary for him to apply for fresh registration under this section and he shall follow the procedure as may be prescribed in this behalf.
(2) Notwithstand

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section (1) on the basis of any other document as may be prescribed.
(5) Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under this Act, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed.
(6) Notwithstanding anything contained in sub-section (1), any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries and any other person or class of persons as may be notified by

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or an Unique Identity Number shall be deemed to have been granted after the period prescribed under sub-section (7), if no deficiency has been communicated to the applicant by the proper officer within that period.
(10) Notwithstanding anything contained in sub-section (7), any rejection of application for registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a rejection of application for registration under the SGST Act / CGST Act.
(11) The grant of registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a grant of registration or the Unique Identity Number under the SGST/CGST Act provided that the application for registration or the Unique Identity Number h

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Manner of recovery of credit distributed in excess
Section 18
Bill
INPUT TAX CREDIT
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
18. Manner of recovery of credit distributed in excess
(1) Where the credit distributed by the Input Service Distributor is in excess of the credit available for distribution by him, the excess credit so distributed shall be recovered from such distributor along with interest, and the provisions of section 51 shall apply mutatis mutandis for effecting such recovery.
(2) Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 17 resulting in excess distribution of credit to one or more suppliers, the excess credit so

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Manner of distribution of credit by Input Service Distributor
Section 17
Bill
INPUT TAX CREDIT
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
17. Manner of distribution of credit by Input Service Distributor
(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

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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, being a business vertical, are located in the same State.
(SGST Act)
(3) The Input Service Distributor may distribute the credit subject to the following conditions, namely:
(a) the credit can be distributed against a prescribed document issued to each of the recipients of the credit so distributed, and such invoice or other document shall contain such details as may be prescribed;
(b) the amount of the credit distributed shall not exceed the amount of credit available for distribution;
(c) the credit of tax paid on input services attributable to a supplier sh

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Taking input tax credit in respect of inputs sent for job work
Section 16A
Bill
INPUT TAX CREDIT
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
16A. Taking input tax credit in respect of inputs sent for job work
(1) The “principal” referred to in section 43 A shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax on inputs sent to a job-worker for job-work if the said inputs, after completion of job-work, are received back by him within one hundred and eighty days of their being sent out:
Provided that the “principal” shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job-work without

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period of two years shall be counted from the date of receipt of the capital goods by the job worker.
(3) Where the inputs or capital goods, as the case may be, are not received back by the “principal” within the time specified under sub-section (1) or under sub-section (2), as the case may be, he shall pay an amount equivalent to the input tax credit availed of on the said inputs or capital goods, as the case may be, along with interest specified under sub-section (1) of section 36:
Provided that the said “principal” may reclaim the input tax credit and interest paid earlier when the inputs or capital goods, as the case may be, are received back by him at his place of business.
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Manner of taking input tax credit
Section 16
Bill
INPUT TAX CREDIT
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER V
INPUT TAX CREDIT
16. Manner of taking input tax credit
(1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and within the time and manner specified in section 35, be entitled to take credit of input tax admissible to him and the said amount shall be credited to the electronic credit ledger of such person.
(2) A person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay t

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ate of issue of tax invoice relating to such supply.
(4) The amount of credit under sub-section (2), (2A) or sub-section (3) shall be calculated in accordance with generally accepted accounting principles in such manner as may be prescribed.
(5) Where the goods and/or services are used by the registered taxable person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business.
(6) Where the goods and / or services are used by the registered taxable person partly for effecting taxable supplies and partly for effecting non-taxable supplies, including exempt supplies but excluding zero-rated supplies, the amount of credit shall be restricted to so much of the input tax as is attributable to the taxable supplies including zero-rated supplies.
(7) The Central or a State Government may, by notification issued in this behalf, prescribe the manner in which the

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nd beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as leave or home travel concession, when such goods and/or services are used primarily for personal use or consumption of any employee;
(c) goods and/or services acquired by the principal in the execution of works contract when such contract results in construction of immovable property, other than plant and machinery;
(d) goods acquired by a principal, the property in which is not transferred (whether as goods or in some other form) to any other person, which are used in the construction of immovable property, other than plant and machinery;
(e) goods and/or services on which tax has been paid under section 8; and
(f) goods and/or services used for private or personal consumption, to the extent they are so consumed.
(10) Where the registered taxa

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st an invoice are received in lots or instalments, the registered taxable person shall be entitled to the credit upon receipt of the last lot or instalment.
Explanation.-For the purpose of clause (b), it shall be deemed that the taxable person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such taxable person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise.
(12) Where any registered taxable person who has availed of input tax credit switches over as a taxable person for paying tax under section 8 or, where the goods and / or services supplied by him become exempt absolutely under section 10, he shall pay an amount, by way of debit in the electronic credit or cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stoc

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Value of taxable supply
Section 15
Bill
TIME AND VALUE OF SUPPLY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
15. Value of taxable supply
(1) The value of a supply of goods and/or services shall be the transaction value, that is the price actually paid or payable for the said supply of goods and/or services where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.
(2) The transaction value under sub-section(1) shall include:
(a) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods and/or se

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T Act or the IGST Act;
(e) incidental expenses, such as, commission and packing, charged by the supplier to the recipient of a supply, including any amount charged for anything done by the supplier in respect of the supply of goods and/or services at the time of, or before delivery of the goods or, as the case may be, supply of the services;
(f) subsidies provided in any form or manner, linked to the supply;
(g) any reimbursable expenditure or cost incurred by or on behalf of the supplier and charged in relation to the supply of goods and/or services;
(h) any discount or incentive that may be allowed after the supply has been effected:
Provided that such post-supply discount which is established as per the agreement and is known at or

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Change in rate of tax in respect of supply of services
Section 14
Bill
TIME AND VALUE OF SUPPLY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
14. Change in rate of tax in respect of supply of services
(1) Notwithstanding anything contained in section 13, the time of supply, in cases where there is a change in the effective rate of tax in respect of services, shall be determined in the following manner, namely:-
(a) in case the taxable service has been provided before the change in effective rate of tax –
(i) where the invoice for the same has been issued and the payment is also received after the change in effective rate of tax, the time of supply shall be the date of receipt of payment or the date o

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upply shall be the date of receipt of payment; or
(ii) where the invoice has been issued and the payment is received before the change in effective rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or
(iii) where the invoice has been issued after the change in effective rate of tax but the payment is received before the change in effective rate of tax, the time of supply shall be the date of issue of invoice.
Explanation.- For the purpose of this section, “the date of receipt of payment” shall be the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to his bank account, whichever is earlier:

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Time of supply of services
Section 13
Bill
TIME AND VALUE OF SUPPLY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
13. Time of supply of services
(1) The liability to pay CGST/SGST on services shall arise at the time of supply, as determined in terms of the provisions of this section.
(2) The time of supply of services shall be:-
(a) the date of issue of invoice or the date of receipt of payment, whichever is earlier, if the invoice is issued within the prescribed period; or
(b) the date of completion of the provision of service or the date of receipt of payment, whichever is earlier, if the invoice is not issued within the prescribed period; or
(c) the date on which the recipient shows the receipt

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is liable to be made by the recipient of service, whether or not any invoice has been issued or any payment has been received by the supplier of service;
(b) where the due date of payment is not ascertainable from the contract, each such time when the supplier of service receives the payment, or issues an invoice, whichever is earlier;
(c) where the payment is linked to the completion of an event, the time of completion of that event;
(4) For the purposes of sub section (3) above, the Central or a State Government may on the recommendation of the Council, specify, by notification, the supply of services that shall be treated as continuous supply of services;
(5) In case of supplies in respect of which tax is paid or liable to be paid

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Time of supply of goods
Section 12
Bill
TIME AND VALUE OF SUPPLY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER IV
TIME AND VALUE OF SUPPLY
12. Time of supply of goods
(1) The liability to pay CGST / SGST on the goods shall arise at the time of supply as determined in terms of the provisions of this section.
(2) The time of supply of goods shall be the earliest of the following dates, namely,-
(a) (i) the date on which the goods are removed by the supplier for supply to the recipient, in a case where the goods are required to be removed or
(ii) the date on which the goods are made available to the recipient, in a case where the goods are not required to be removed; or
(b) the date on which

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b) and (c) of sub-section (2), the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.
Explanation 4.- For the purpose of clause (c) of sub-section (2), “the date on which the supplier receives the payment” shall be the date on which the payment is entered in his books of accounts or the date on which the payment is credited to his bank account, whichever is earlier.
(3) In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the time of supply shall be the date of expiry of the period to which such successive statements of accounts or successive payments relate. If there are no successive statements of account,

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ose of clause (b) of sub-section (5), “the date on which the payment is made” shall be the date on which the payment is entered in the books of accounts of the recipient or the date on which the payment is debited in his bank account, whichever is earlier.
(6) If the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, the time of supply shall be at the time when it becomes known that the supply has taken place or six months from the date of removal, whichever is earlier.
(7) In case it is not possible to determine the time of supply under the provisions of subsection (2), (3), (5) or (6), the time of supply shall
(a) in a case where a periodical retur

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Remission of tax on supplies found deficient in quantity
Section 11
Bill
LEVY OF, AND EXEMPTION FROM, TAX
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
11. Remission of tax on supplies found deficient in quantity
(1) The Central or a State Government may, by rules made under this sub-section, provide for remission of tax on such supplies which are found to be deficient in quantity due to any natural causes.
(2) Any rules made under sub-section (1) may, hav

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Power to grant exemption from tax
Section 10
Bill
LEVY OF, AND EXEMPTION FROM, TAX
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
10. Power to grant exemption from tax
(1) If the Central or a State Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendation of the Council, by notification, exempt generally either absolutely or subject to such conditions as may be specified in the notification, goods and/or services of any specified description from the whole or any part of the tax leviable thereon.
Explanation.- Where an exemption under sub-section (1) in respect of any goods and/or services from the whole of the tax leviable thereon has been granted abso

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he case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.
(4) Every notification issued under sub-section (1) or sub-section (3)and every order issued under sub-section (2) shall
(a) unless otherwise provided, come into force on the date of its issue by the Central or a State Government for publication in the Official Gazette; and
(b) be made available on the official website of the department of the Central or a State Government.
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Taxable person
Section 9
Bill
LEVY OF, AND EXEMPTION FROM, TAX
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
9. Taxable person
(1) Taxable Person means a person who carries on any business at any place in India /State of ____ and who is registered or required to be registered under Schedule III of this Act:
Provided that an agriculturist shall not be considered as a taxable person.
Provided further that a person who is required to be registered under paragraph 1 of Schedule III of this Act shall not be considered as a taxable person until his aggregate turnover in a financial year exceeds [Rs ten lakh]
Provided further that a person who is required to be registered under paragraph 1 of Schedule III

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Composition Levy
Section 8
Bill
LEVY OF, AND EXEMPTION FROM, TAX
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
8. Composition Levy
(1) Notwithstanding anything to the contrary contained in the Act but subject to subsection (3) of section 7, on the recommendation of the Council, the proper officer of the Central or a State Government may, subject to such conditions and restrictions as may be prescribed, permit a registered taxable person, whose aggregate turnover in a financial year does not exceed [fifty lakh of rupees], to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not less than one percent of the turnover during the year:
Provided that no such

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Levy and Collection of Central/State Goods and Services Tax
Section 7
Bill
LEVY OF, AND EXEMPTION FROM, TAX
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER III
LEVY OF, AND EXEMPTION FROM, TAX
7. Levy and Collection of Central/State Goods and Services Tax
(1) There shall be levied a tax called the Central/State Goods and Services Tax (CGST/SGST) on all intra-State supplies of goods and/or services at the rate specified in the Schedule . . . to this

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Powers of officers under the Central Goods and Services Tax Act
Section 6
Bill
ADMINISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
6. Powers of officers under the Central Goods and Services Tax Act
(1) Subject to such conditions and limitations as the Board may impose, an officer of the Central Goods and Services Tax may exercise the powers and discharge the duties conferred or imposed on him under this Act.
(2) An officer of Central Goods and Ser

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Appointment of officers under the Central Goods and Services Tax Act
Section 5
Bill
ADMINISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
5. Appointment of officers under the Central Goods and Services Tax Act
(1) The Board may appoint such persons as it may think fit to be officers under the Central Goods and Services Tax Act.
(2) Without prejudice to the provisions of sub-section (1), the Board may authorize a Principal Chief Commissioner/Chief Co

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Classes of officers under the Central Goods and Services Tax Act
Section 4
Bill
ADMINISTRATION
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER II
ADMINISTRATION
4. Classes of officers under the Central Goods and Services Tax Act
(1) There shall be the following classes of officers under the Central Goods and Services Tax Act, namely;
(a) Principal Chief Commissioners of CGST or
Principal Directors General of CGST,
(b) Chief Commissioners of CGST

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Meaning and scope of supply
Section 3
Bill
PRELIMINARY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
3. Meaning and scope of supply
(1) Supply includes
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business,
(b) importation of service, whether or not for a consideration and whether or not in the course or furtherance of business, and
(c) a supply specified in Schedule I, made or agreed to be made without a consideration.
(2) Schedule II, in respect of matters mentioned therein, shall apply for determining what is, or is to be trea

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Definitions
Section 2
Bill
PRELIMINARY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
2. Definitions
In this Act, unless the context otherwise requires,-
(1) “actionable claim” shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882;
(2) “address of delivery” means the address of the recipient of goods and/or services indicated on the tax invoice issued by a taxable person for delivery of such goods and/or services;
(3) “address on record” means the address of the recipient as available in the records of the supplier;
(4) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, the First Appellate Authority and the Appellate Tribunal;
(5) “agent” means a person who carries on the business of supply or receipt of goods and/or services on behalf of another, whether disclosed or not and includes a factor, broker, commission agent, arhatia,

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earing of seedlings or plants;
Explanation.- For the purpose of this clause, the expression 'forest' means the forest to which the Indian Forest Act, 1927 applies.
(8) “agriculturist” means a person who cultivates land personally, for the purpose of agriculture;
(9) "Appellate Tribunal" means the National Goods and Services Tax Appellate Tribunal constituted under section 81;
(10) “appointed day'' means the date on which section 1 of this Act comes into effect;
(11) “appropriate Government” means the Central Government in case of the IGST and the CGST, and the State Government in case of the SGST;
(12) “assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgement assessment;
(13) "associated enterprise" shall have the meaning assigned to it in section 92A of the Income Tax Act, 1961;
(14) “audit” means detailed examination of records, returns and ot

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ontinuity or regularity of such transaction;
(d) supply or acquisition of goods including capital assets and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members, as the case may be;
(f) admission, for a consideration, of persons to any premises; and
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(18) “business vertical” shall have the meaning assigned to a 'business segment' in Accounting Standard 17 issued by the Institute of Chartered Accountants of India;
(19) “capital assets” shall have the meaning as assigned to it in the Income Tax Act, 1961 (43 of 1961) but the said expression shall not include jewellery held for personal use or property not connected with the business;
(20) “capital goods” mea

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(i) supplying the service of renting of such motor vehicle; or
(ii) transportation of inputs and capital goods used for supply of service; or
(iii) supply of courier agency service;
(C) motor vehicle designed to carry passengers including their chassis, registered in the name of the supplier of service, when used for supplying the service of-
(i) transportation of passengers; or
(ii) renting of such motor vehicle; or
(iii) imparting motor driving skills;
(D) Components, spares and accessories of motor vehicles which are capital goods for the taxable person.
(21) “casual taxable person” means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business;
(22) “CGST” means the tax levied under the Central Goods and Services Tax Act, 2016;
(23) “chartered accountant” means a chartered accountan

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o be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods and/or services, whether by the said person or by any other person;
(b) the monetary value of any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods and/or services, whether by the said person or by any other person:
Provided that a deposit, whether refundable or not, given in respect of the supply of goods and/or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply;
(29) “continuous journey” means a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stop over between any of the legs of the journey for which one or more separate tickets or in

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cle;
(33) “cost accountant” means a cost accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959);
(34) “Council” means the Goods and Services Tax Council established under Article 279A of the Constitution;
(35) “credit note” means a document issued by a taxable person as referred to in sub-section (1) of section 24;
(36) “debit note” means a document issued by a taxable person as referred to in sub-section (2) of section 24;
(37) “deemed exports”, as notified by the Central Government/State Government on the recommendation of the Council, refer to those transactions in which the goods supplied do not leave India, and payment for such supplies is received either in Indian Rupees or in convertible foreign exchange;
(38) “document” includes written or printed record of any sort and electronic record as defined in the Information Technology Act, 2000 [21 of 2000];
(39) “earlier law” means any of the following laws, that is to say,
(a) . . .
(b) . . .

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sions, means taking out of India to a place outside India;
(44) the supply of any service shall be treated as “export of service” when
(a) the supplier of service is located in India,
(b) the recipient of service is located outside India,
(c) the place of supply of service is outside India,
(d) the payment for such service has been received by the supplier of service in convertible foreign exchange, and
(e) the supplier of service and recipient of service are not merely establishments of a distinct person;
Explanation.- For the purposes of clause (e), an establishment of a person in India and any of his other establishment outside India shall be treated as establishments of distinct persons.
(45) “First Appellate Authority” means an authority referred to in section 79;
(46) “fixed establishment” means a place (other than the place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply

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matical variations and cognate expressions, means bringing into India from a place outside India;
(52) the supply of any service shall be treated as an “import of service” if,
(a) the supplier of service is located outside India,
(b) the recipient of service is located in India,
(c) the place of supply of service is in India, and
(d) the supplier of service and the recipient of service are not merely establishments of a distinct person;
Explanation 1.- An establishment of a person in India and any of his other establishment outside India shall be treated as establishments of distinct persons.
Explanation 2.- A person carrying on a business through a branch or agency or representational office in any territory shall be treated as having an establishment in that territory.
(53) “India” means,-
(a) the territory of the Union as referred to in clauses (2) and (3) of Article 1 of the Constitution;
(b) its territorial waters, continental shelf, exclusive economic zone or any other

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e of business;
(56) "Input Service Distributor" means an office of the supplier of goods and / or services which receives tax invoices issued under section 23 towards receipt of input services and issues tax invoice or such other document as prescribed for the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the said services to a supplier of taxable goods and / or services having same PAN as that of the office referred to above;
Explanation.- For the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST, Input Service Distributor shall be deemed to be a supplier of services.
(57) "input tax" in relation to a taxable person, means the {IGST and CGST}/{IGST and SGST} charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or furtherance of his business and includes the tax payable under sub-section (3) of section 7;
(58) “input tax credit” means

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) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
(e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
(f) a Development Board constituted under Article 371 of the Constitution; or
(g) a Regional Council constituted under Article 371A of the Constitution;
(64) “location of recipient of service” means:
(i) where a supply is received at a place of business for which registration has been obtained, the location of such place of business;
(ii) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment;
(iii) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and
(iv) in absence of such places, the location of the usua

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d quality at or about the same time and at the same commercial level where the recipient and the supplier are not related;
(68) “money” means Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any such similar instrument when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value;
(69) “non-resident taxable person” means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India;
(70) “non-taxable territory” means the territory which is outside the taxable territory;
(71) “notification” means notification published in the Official Gazette and the expressions 'notify' and 'notified'

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s Act, 2013 (18 of 2013);
(h) any body corporate incorporated by or under the laws of a country outside India;
(i) a co-operative society registered under any law relating to cooperative societies;
(j) a local authority;
(k) government;
(l) society as defined under the Societies Registration Act, 1860 (21 of 1860);
(m) trust; and
(n) every artificial juridical person, not falling within any of the preceding sub-clauses;
(75) “place of business” includes
(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called;
(76) “prescribed'' means prescribed by the rules, regulations or by any notification issued under this Act;
(77) “principal” means a person on whose beha

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he service is rendered,
and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply;
Explanation.- The expression “recipient” shall also include an agent acting as such on behalf of the recipient in relation to the goods and/or services supplied.
(81) “regulations” means the regulations made by the Board/Commissioner under any provision of the Act on the recommendation of the Council;
(82) persons shall be deemed to be “related persons'' if only –
(a) they are officers or directors of one another's businesses;
(b) they are legally recognized partners in business;
(c) they are employer and employee;
(d) any person directly or indirectly owns, controls or holds five per cent or more of the outstanding voting stock or shares of both of them;
(e) one of them directly or indirectly controls the other;
(f) both of them are directly or indirectly controlled by a third person;
(g) together they directly or indirectly co

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State Government may, on the recommendation of the Council, by notification, specify;
(86) “rules” means the rules made by the Central/State Government under any provision of the Act on the recommendation of the Council;
(87) “schedule” means a schedule appended to this Act;
(88) “services'' means anything other than goods;
Explanation: Services include intangible property and actionable claim but does not include money.
(89) “SGST” means the tax levied under the State Goods and Services Tax Act;
(90) “Special Economic Zone'' shall have the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 [28 of 2005];
(91) “supplier” in relation to any goods and/or services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in relation to the goods and/or services supplied;
(92) “supply'' shall have the meaning as assigned to it in section 3;
(93) “tangible property” mean

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eception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electro-magnetic means;
(101) “time of supply of goods'' shall have the meaning as assigned to it in section 12;
(102) “time of supply of services'' shall have the meaning as assigned to it in section 13;
(103) “to cultivate personally” means to carry on any agricultural operation on one's own account-
(a) by one's own labour, or
(b) by the labour of one's family, or
(c) by servants on wages payable in cash or kind (but not in crop share) or by hired labour under one's personal supervision or the personal supervision of any member of one's family;
Explanation 1. – A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour.
Explanation 2. – In the case of a Hindu Undivided Fami

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Short title, extent and commencement
Section 1
Bill
PRELIMINARY
MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement
(1) This Act may be called the Central / State Goods and Services Tax Act, 2016.
(2) It extends to the whole of India / State's name.
(3) It shall come into force on such date as the Central or a State Government may, by notification in the Official Gazette, appoint in this behalf:
P

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