Goods and Services Tax

Central Excise – Started By: – Rajan Rajan – Dated:- 8-5-2017 Last Replied Date:- 10-5-2017 – Wrongly Selected Not Migrating to GST at the time of filing April 2017 ER-1 return, instead of Enter your GST Username & Return Status shows Marked for Review. This may impact our GST Prov ID/ARN cancelled also Credit migration in GST regime. Please your valuable advice to rectify – Reply By KASTURI SETHI – The Reply = Already replied. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = You may contact

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Goods and Services Tax – Started By: – K.Srinivasan Kuppuswamy – Dated:- 8-5-2017 Last Replied Date:- 9-5-2017 – Dear Experts The present rule permits the assesse to pay the service tax under reverse charge mechanism for Manpower supply/GTA and rent a cab service. In the GST also the same will be continued as reverse charge. whether the service providers such as Goods transport agency and manpower supply service providers and rent a cab service providers is mandatory to re

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Goods and Services Tax – GST – Dated:- 8-5-2017 – Tokyo, May 8 (PTI) The Goods and Services Tax (GST) is on schedule for implementation from July 1 and will not lead to any significant increase in prices of goods although cost of some services may see a marginal hike, Finance Minister Arun Jaitley said today. Hailed as the biggest tax reform since India's independence, GST will replace an array of central and state levies with a national sales tax, thereby creating a single market and making it easier to do business in the country. Addressing CII-Kotak investors' round table here, Jaitley said that the GST Council, headed by him and comprising representatives of all states, will in the next few days finalise the rates of tax for di

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ferent commodities and services in the decided tax brackets. Demerit and luxury goods will attract the peak tax rate plus a cess. Tax rate closed to the existing incidence of total central and state levies will be chosen as the slab for a good or services. As far as goods is concerned, the tax is not likely to increase at all. If at all, it may marginally come down because of the cascading impact not being there and therefore, it is not likely to be inflationary. As far as services is concerned, obviously, they will go up marginally and therefore, there will be some impact on this. So, goods and services may react a little differently, Jaitley said. Asked if GST would stoke inflation, he said: I don't anticipate this to happen significa

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be introduced in the country which itself would ease the very processes of doing business, he said. At the investors' meet, he said there would be no cascading impact of tax on tax under GST. GST being a more efficient tax, evasion will become difficult. In the current system, there is large evasion, he said. Jaitley said the constitutional amendment gives time till September 15 for introduction of GST but the target date has been kept at July 1. So, we have a cushion of two-and-a-half months but it looks like we will be able to begin on schedule, he said. Also, a simple IT network has been put in place and there is no multiple forms for filing tax returns, he said. GST would be a transformational system, he said, adding there could be

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Goods and Services Tax – GST – Dated:- 8-5-2017 – Vadodara, May 7 (PTI) Revenue Secretary Hasmukh Adhia is hopeful of a smooth transition to the GST regime and says it will help domestic firms to become more competitive apart from streamlining the taxation for all business activities. Unlike in other countries, the transition to the new tax regime would be smooth here because there are multiple points of taxation in the country. Hence, the possibility of sudden spurt in inflation is remote, said Adhia, who is spearheading the implementation of the Goods and Services Tax. He was speaking at a conference on GST organised by the Federation of Gujarat Industries and the chief commissioner, Central Excise, Customs & Service Tax, Vadodara zo

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 8-5-2017 Last Replied Date:- 9-5-2017 – GST DAILY DOSE OF UPDATION Changes in definition of inputs, capital goods and input services As evident from revised draft, the definitions of the input goods, capital goods and input services have undergone a major change or let s say, it has been simplified to the maximum extent possible. In the current laws, there are definitions containing specifications and restrictions to items and services on which cenvat can be taken or not. But in the new regime, these restrictions have been minimised. For eg. the definition of input is given in sec 2(52) as any goods other than capital goods used or intended to be used by a supplier in the course o

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st probable that they will fall as residuary items in the definition of inputs. Similarly it has been stated that goods or services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, even when used in course or furtherance of business won t be eligible for availing cenvat. But if the building is being capitalized then the inputs used in the building will be treated as capital goods and its cenvat should be allowed. – Reply By Sanketh Meri – The Reply = Dear Sir,In your Last Para, it has been mentioned that if the Immovable Property is capitalized, then its inputs should be allowed for ITC. Can you throw some more light on this. – Reply By Narhar Nimkar – The Reply = Dea

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 8-5-2017 Last Replied Date:- 9-5-2017 – Invoice is basic document for supply of goods or service. There are circumstances where Taxable Invoice need not be raised only Bill of Supply will be issued .what are circumstances where Taxable Invoice as well as Bill of supply need not be raised and instead Delivery Challan will be sufficient. Where there is difference in price downward and upward one need to issue supplementary invoice / debit note or credit note. What are the circumstance where revised invoice will be issued. Let us discuss one by one and focus on Section 31 to 34 of the GST Act ,2017 and Invoice Rule of the same. Issue of tax Invoice and Bill of Supply 1. at the time of Removal of goods where there is movement of Goods. 2. delivery of goods where there is no movement of goods. 3. tax invoice not required where goods are valuing less than ₹ 200. 4. Supply of exempted goods or paying tax under sec.10, will

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ment is fix as per contact, due date b] otherwise at the time of receipt of payment c] on completion of event if the event is linked. Requirement Tax Invoice Bill of Supply Supplementary/Revised Invoice Debit & Credit Note Receipt Voucher Name, Address and GSTIN of supplier Y Y Y Y Serial Number Y Y Y Y Date of issue Y Y Y Y Name, Address and GSTIN or UIN of recipient if register Y Y Y Y Name, Address of recipient & address of delivery with name and code of state if recipient is unregistered where the value of taxable supply is ₹ 50000 or more. Y N Y Y HSN Code or SAC Y Y N N Description of Goods and Services Y Y N Y Quantity in case of goods & unit or unique Quantity code Y N N N Total value of Goods or Services or both Y Y N N Taxable value of Goods or services after discount Y N Y Y Rate of tax Y N N Y Amount of tax Y N N Y Place of supply with name of State in case of Inter state supply. Y N N Y Address of delivery if the same is different from place of supply Y N

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tributor Serial number Date of issue Name address and GSTIN of recipient Amount of credit distributed signature where the ISD is bank, financial institution or NBFC , they can issue any document without any serial number but having all information mentioned above. Where the supplier of goods is GTA supplying goods by road shall issue tax invoice or any other document containing the gross weight of the consignment, name of the consignor and consignee, registration number of goods carriage, detail of goods transported, place of origin and destination, GSTIN of person liable for paying tax consignor, consignee or GTA and also containing other information as per rule -1. Where the supplier is passenger transportation, tax invoice shall include ticket in any form by whatever name called without any serial no., without the address of recipient but include all information mentioned in rule-1. Following are the cases where invoice is not mandatory Supply of liquid gas where the quantity at the

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 8-5-2017 – Refund Section 54 of the Central Goods and Services Tax, 2017 ( Act for short) provides the procedure for the refund of tax. Section 54(5) provides that the proper officer, on receipt of refund application, is satisfied that the whole or part of the amount claimed as refund is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund referred to in section 57. Consumer Welfare Fund Section 57 provides that the Government shall constitute a Fund, to be called the Consumer Welfare Fund. There shall be credited to the Fund- The amount referred to in section 54(5); any income from investment of the amount credited to the Fund; and such other monies received by it in such manner as may be prescribed. Rule 4(4) provides that where the proper officer is satisfied that the amount refundable is not payable to the applicant under section 54(8) he shall make an order in For

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the recommendation of the Council, by notification, specify. Rule 8 (1) provides that all credits to the Consumer Welfare Fund shall be made under Rule 4(4). Utilization of Fund Section 58(1) provides that all sums credited to the Fund shall be utilized by the Government for the welfare of the consumers in such manner as may be prescribed. Rule 8(2) provides that any amount, having been credited to the Fund, ordered or directed as payable to any claimant by orders of the proper officer, appellate authority or Appellate Tribunal or court, shall be paid from the Fund. Rule 8(4) provides that the Central/State Government shall, by an order, constitute a Standing Committee which shall make recommendations for proper utilization of the money credited to the Consumer Welfare Fund for the welfare of the consumers. Rule 8(3) provides that any utilization of amount from the Consumer Welfare Fund shall be made by debiting the Consumer Welfare Fund account and crediting the account to which the a

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require any applicant, in case of any default, or suppression of material information on his part, to refund in lump sum, the sanctioned grant to the Committee, and to be subject to prosecution under this Act; to recover any sum due from any applicant in accordance with the provisions of the Act; to require any applicant, or class of applicants to submit a periodical report, indicating proper utilization of the grant; to reject an application placed before it on account of factual inconsistency, or inaccuracy in materialparticulars; to recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status and importance and utility of nature of activity under pursuit, after ensuing that the financial assistance provided shall not be misutilized; to identify beneficial and safe sectors, where investments out of Consumer Welfare Fund may be made and make recommendations, accordingly; to relax the conditions required for the period of engaged in con

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for reimbursement of legal expenses incurred by him as a complainant in a consumer dispute, after its final adjudication. All applications for grant from Consumer Welfare Fund shall be made by the applicant Member Secretary. The Committee shall not consider an application, unless it has been inquired into in material details and recommended for consideration accordingly, by Member Secretary. Maintenance of accounts Section 58(2) provides that the Government or the authority specified by it, shall maintain proper and separate account and for other relevant records in relation to the Fund and prepares an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India. Guidelines Rule 8(9) provides that the Central Consumer Protection Council established under the Consumer Protection Act and the Bureau of Indian Standards shall recommend to the GST Council, the broad guidelines for considering the projects or proposals for

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 6-5-2017 Last Replied Date:- 6-5-2017 – Who are liable to deduct tax at source? Section 51 of the Central Goods and Services Tax Act, 2017 ( Act for short) provides the procedure to deduct tax at source. Section 51(1) provides who are liable to deduct tax at source. Section 51(1) provide that notwithstanding anything to the contrary contained in this Act, the Central Government may mandate- a department or establishment of the Central Government or State Government; or local authority; or Governmental agencies; or Such persons or category of persons as may be notified by the Government on the recommendations of the Council. to deduct tax at the rate of 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply under a contract, exceeds ₹ 2,50,000/-. According to this section the required persons need not deduct tax at source if the total value o

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application. Value of supply The explanation to Section 51(1) provides that for the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice. Time limit to pay Section 51(2) provides that amount deducted as tax under Section 51 shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made. Payment of tax The deductor is to maintain electronic cash ledger and electronic liability register. The electronic cash ledger shall be maintained in Form GST PMT – 05 for the deductor to pay tax, interest, penalty, late fee or any other amount on the Common Portal for crediting the amount deposited. The deductor shall generate a challan in Form GST PMT – 06 on the Common Portal entering the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount. The

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ecting bank and the same shall be indicated in the challan. On receipt of CIN from the authorized bank, the said amount shall be credited to the electronic cash ledger of the person on whose behalf the deposit has been made and the Common Portal shall available a receipt to this effect. Where the bank account of the person concerned, or the person making the deposit on his behalf but no Challan Identification Number is generated or generated but not communicated to the Common Portal the said person may represent electronically in Form GST PMT – 07 through the Common Portal to the Bank or electronic gateway through which the deposit was initiated. The amount deducted thus shall be paid by debiting the electronic cash ledger and crediting the electronic liability register. TDS certificate Section 51(3) provides that the deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such oth

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suppliers in Part C of Form GSTR – 2A on the Common Portal after the due date (10 days from the end of the month) of filing of Form GSTR – 07. Payment of interest Section 51(6) provides that if any deductor fails to pay to the Government the amount deducted as tax, he shall pay interest in accordance with the provisions of Section 50(1), in addition to the amount of tax deducted. The determination of the amount in default shall be made in the manner specified in section 73 or section 74. Refund Section 51(8) provides that the refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be filed under Section 54. The refund shall be claimed by filing an application in Form GST RFD – 01 electronically through the Common Portal. The application shall be accompany by the required documentary evidences, as applicable to establish that the refund is due to the applicant. An acknowledgement in Form GST RFD – 02 shall be made available to the applicant thro

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for refund. Where upon examination of the application, the proper officer is satisfied that a refund is due and payable to the applicant, he shall make an order in Form GST RFD – 06, sanctioning the amount of refund to which the applicant is entitled, mentioning the amount, if any, refunded to him on a provisional basis, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable. If the refund is delayed because of the reasons not on the part of the applicant, the interest shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund. Cancellation of registration Where the proper officer is satisfied that a person to whom a certificate of registration in Form GST REG 06 has been issued is no longer liable to deduct tax at source under section 51 the said officer may cancel the registration and such cancellation shall be c

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 6-5-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are business, business vertical and casual taxable person. Business [Section 2(17)] 'Business' includes- any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; any activity or transaction in connection with or incidental or ancillary to sub-clause(a); any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; 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; admission, for a consideration

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t will not be considered. Even if there is no intention to make profit out of it, still the transaction may be covered in the definition of 'business'. For example, supply of goods by an association to its members. It may be noted that any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities shall be deemed to be business. This definition is an inclusive definition wherein all types of transactions including incidental or ancillary to trade, commerce, manufacture, profession, vocation, adventure, wager or other similar activities are covered. It is immaterial whether such transactions are for pecuniary benefit or not. These terms have not been defined. 'Agriculture' is specifically excluded from 'business'. Business includes: day-to-day running of the business, rationalization of business administration and modernization of machinery of business, preservation of bu

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services; (b) the nature of the production processes; (c) the type or class of customers for the goods or services; (d) the methods used to distribute the goods or supply of services; and (e) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities. Under the scheme of the CGST Act, each taxable person is required to have one registration in a state, from which it makes supplies of taxable goods or services. Even if such person has more than one place of business in a single state, still such person is required to obtain only one registration. However, an exception has been made for a separate business vertical. Thus, a taxable person having more than one business vertical in a state can consider to obtain more than one registrations in that state for each of different verticals. It may be noted that this is a facility and is thus optional for the tax payer. There is no compulsion on a taxable person having more than one business ver

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regulatory environment, for example, banking, insurance, or public utilities. Business vertical is relevant for the purpose of distribution of input credit by Input Service Distributor (ISD) and for the purpose of obtaining separate GST registration. If the entity opts to have separate registration for different business verticals, it will have more than one registration within the State. Casual taxable person [Section 2(20)] 'Casual taxable person' means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. Casual taxable persons are those persons who undertake business activities in a casual or on temporary basis. They have no fixed place of business (e.g. traders in trade/ business fairs or exhibitions). Such persons may provide or may get involved in supply or acquis

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State check posts will go under GST; excise point may stay – Goods and Services Tax – GST – Dated:- 5-5-2017 – New Delhi, May 5 (PTI) State level check posts which collect taxes on movement of goods will not be required under the GST regime that will take effect from July 1, although excise collection points may remain as they relate to taxation on alcohol, Revenue Secretary Hasmukh Adhia said today. The rates will be common under the Goods and Services Tax and for the movement of goods in or outside a state, there is no need to check whether goods have moved physically out of the state or not, he said. So, as far as taxation is concerned, the check posts will go. There are couple of other check posts like the state excise check posts. Sta

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the input tax credit that is given on petrol and diesel, the rate will be different, he said. What that rate will be, I cannot say, but it will be different for transportation sector, he added. The next meeting of the GST Council is scheduled for May 18-19. In this round of the meeting to be headed by Finance Minister Arun Jaitley, the Council is scheduled to finalise the rates of different commodities and services. It is also expected to approve rates of remaining items. The Council has already approved half of the rules that are required for rolling out of GST from the scheduled date. Rules on registration of entities under GST, filing of returns, payment of tax and refund, invoicing and debit and credit notes have already been amended b

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 5-5-2017 Last Replied Date:- 12-5-2017 – Present Indirect Taxation This sector basically comprises of Manufacturers, Automobile Dealers & Retailers. Presently, all of them are paying various indirect taxes such as: Excise Duty on manufacture/production of vehicles along with cesses, Service tax on services both as provider and also as receiver under reverse charge, Value added tax (VAT)/Central sales tax (CST) on Sale of Vehicle/ Spares/ Accessories; Central Cesses Taxation under GST Regime Taxable Person For GST, taxable person means a person who is registered or liable to be registered under section 22 or 24 of the CGST Act, 2017. Example If as an Automobile dealer has obtained separate registration for its administrative office, showroom and workshop in the same/different State(s), then in case of separate registrations such administrative office, showroom and workshop, shall be treated as distinct persons. Accor

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on cess if charged separately by the supplier. (Example: toll tax etc.) Amount paid by the recipient w.r.t. supply on behalf of supplier and not included in the price actually paid or payable (Example: Labour payment made by the recipient on behalf of supplier) Incidental Expenses such as employee insurance interest or late fee or penalty for delayed payment of any consideration for any supply (Example: Interest on delayed payments) Value of subsidies linked to supply excluding subsidies provided by the Central and State Governments However, value of supply shall exclude any discount that is given: (a) Before or At the time of the supply: Discount has been duly recorded in the invoice issued in respect of such supply, and (b) After the supply has been effected (i) Discount is established in terms of an agreement entered into at or before the time of such supply, and (ii) Specifically linked to relevant invoices, and (iii) Input tax credit has been reversed by the recipient of the suppl

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Automobile industries are a challenge which require redressal from your good office: Road Tax/ Life Tax – Currently, service tax or VAT is not paid on the Road Tax element. However, in the GST regime, value for the purpose of paying GST should also include Road Tax. Section 15 of the GST law clearly states that no taxes shall be allowed as reduction from the value except CGST, SGST/UTGST and IGST. Therefore, duplication of taxes to this extent will continue, as road tax is not being subsumed in GST. Road tax rates vary from State to State, are fairly high and ranges between 2% to 15%. This would unnecessary increase cost for the consumers. Reimbursement of Insurance, Registration etc. – In the GST Law, it is not stated whether GST is also required to be paid on the reimbursements. Automobile dealer collects various amounts from customers which are mere reimbursements and are paid back as it is to someone else. In other words, such amounts are collected merely as a pure agent, For examp

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o the condition that the same is shown in the invoice and is in the course of normal trade practice. The term normal trade practice is very subjective and especially in the automobile industry, the discounts vary depending upon the variants, new product launch, etc., and this may lead to valuation disputes. Post-supply Discounts- Generally, dealers receive various discounts from its manufacturers based on targets, vehicles lifted, Special Customers, Year-End Discounts etc. It is pertinent to note that post supply discounts will not be allowed as deduction from the value if the same is not linked to any invoice. Therefore, discounts policy needs to be reviewed and the same must be brought in line with the GST law to avoid tax on high values and litigation. Dealer Incentive Schemes – At present, dealer incentive schemes are not subject to VAT, but there are issues on applicability of service tax on dealers, depending on the terms of each scheme. The nature of such schemes is that these s

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made for the supply, unless the same is applied as consideration for the supply. There may be two views taken for advances for supply, i.e. Either it can be treated as payment received towards supply i.e. consideration for supply or; Can be treated as deposit . If second view is taken, the date of appropriation of the deposit towards a supply may be treated as the date of payment. This would also lead to ambiguity in interpretation as to what should be the date of such appropriation (like date of Vehicle Identification Number (VIN), date of registration of vehicle with the regional transport office etc.). This issue requires clarity. Vehicle Booking Advance- Currently token money received as advance towards booking of vehicle is not liable for VAT as the same is payable at the time of sale of vehicles. However, this practice of holding advances without payment of any taxes will be withdrawn in the GST regime and taxes will have to be paid on receipt of the booking advances also. Theref

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GST registration number is obtained for each such dealership, then transfer of any goods/ services between such dealerships will also be liable for GST. This will result in blocking of the working capital as the taxes needs to be paid from own funds and collection of taxes will be at a later date when such goods/ services are eventually sold. Tax on Second Hand Vehicles In GST, there may be additional tax burden on transactions in second-hand motor vehicles and exchange of vehicles. The proposed GST rules, issued by the Government will consider the market value of the new vehicle while calculating the tax burden. Thus, consumers may end up paying more as the discounted amount would be taxed. Under the new GST rules, retailers and traders dealing in used vehicles will come under taxation. While under the existing rules, second – hand products are outside the purview of tax and as such, sellers will have to pay taxes at the same rate as the new products. It may also increase the working

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ly of Goods and Supply of Services and accordingly taxed at the applicable rates or will it be treated as Composite/Mixed Supply on Case to case basis?? 2. Whether Provisions of Sec 140(3) shall cover already registered Automobile dealers who are also running their Service Workshop for servicing of Vehicle?? 3. Admissibility of Cenvat Credit on Demo vehicle i.e., Excise Element paid on Excise Bills, though such cars have been capitalized in books of Accounts of the Dealer. Thanks & Regards, – Reply By Pranay Jain – The Reply = Dear Sir, Thanks for sharing this, I am an automobile dealer, but there are few points which need to further discussed1. GST on road tax doesn't make sense, since it is not part of consideration value and it is imposed on complete invoice value including VAT or GST. So Road tax on GST and GST on road tax would be like circular reference sort of thing where both taxes are applicable on each other.2. Free Service Coupon reimbursement by manufacturer is made

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demo vehicle if it is being capitalized Road tax is not being subsumed in GST Free service coupons may taxed at redemption (Refer place of supply provisions in IGST) Pre-announced discounts or incentives may not be taxed. You may write to asandco@gmail.com or sanjivservicetax@gmail.com – Reply By abhishek ghai – The Reply = Respected Sir, Please clarify whether the following stands correct as in my opinion benefits of Sec 140(3) would be extended to already registered persons i.e., trader/Service Provider- 1. The opening line of the section says that – A registered person, who was not liable to be registered under the existing law , Section does not say- under any of the existing law. Can we not safely assume that currently traders are not liable to be registered under Excise? Hence even registered persons would get covered under the same, whether registered under Vat or Service Tax. 2. Section intends to pass benefit of central taxes i.e., Excise Duty on the goods which are part of t

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Goods and Services Tax – Started By: – samiuddin ansari – Dated:- 4-5-2017 Last Replied Date:- 5-5-2017 – Sir,Under GST, the threshold limit for exemption has been fixed for ₹ 20 lakhs for the supplier of taxable services and ₹ 1.50 Crore for the supplier of manufactured taxable goods for getting registered with GST. However, I need your suggestion as to whether manufacturer engaged in manufacturing taxable goods having a turnover less than threshold limit but also supplied services have more than 20 lakhs in a financial year, has to apply for registration under GST and also whether they have to show the details of manufactured goods supplied in GST Form 20 or not. Also, suggests, if the manufacturer have more than 1.5 crores i

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IT appears the last part of your ascertainment is correct. Please refer to the relevant provisions of CGST Act 22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. X X X The concept of manufactureing will be done away with. The concept of supply for levy and collection as per Sec. 9 of CG

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Goods and Services Tax – GST – Dated:- 4-5-2017 – Eight States have passed the State Goods and Services Tax (SGST) Act in their respective State Assembly in less than a month s time. The Legislative Assembly of Telangana State passed the State GST Act on 9th April, 2017, that of Bihar State passed it on 24th April, 2017, Rajasthan Assembly on 26th April, 2017, that of Jharkhand on 27th April, 2017, Chhattisgarh Assembly on 28th April, 2017, that of Uttarakhand on 2nd May, 2017, Madhya Pradesh Assembly on 3rd May, 2017 while the Assembly of State of Haryana passed the State GST Bill today i.e. 4th May, 2017. Earlier the GST Council had approved the model State GST (SGST) Bill in its 12th Meeting held on 16th March, 2017. The remaining State

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Goods and Services Tax – GST – Dated:- 4-5-2017 – New Delhi, May 4 (PTI) The GST Bill, among other new transformations, will prove to be a game changer for the media and entertainment industry, Union Minister Venkaiah Naidu said here today. Campaigns like Make in India, Skill India and Digital India were clearly positive signals for new transformation including GST which would prove to be a game changer for Indian media and entertainment sector, especially the broadcasting sector, Information a

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Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 4-5-2017 Last Replied Date:- 5-5-2017 – Sir,Whether all the forms what all mentioned in Draft GST Rules were available on public portal? – Reply By Govind Gupta – The Reply = http://www.cbec.gov.in/htdocs-cbec/gst/draft-rules-formathttp://finmin.nic.in/GST/GST_draft_rules_format.asp – Reply By MARIAPPAN GOVINDARAJAN – The Reply = The forms are made available in the draft rules framed for the first time. All rules are now revise

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Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 4-5-2017 Last Replied Date:- 5-5-2017 – Sir,Is there any option to modify the details given in GST migration. Our additional place of business is rented but we have given it as own premises. – Reply By KASTURI SETHI – The Reply = Still it is proviosnal. It can be modified. Nothing to worry. You can amend it even after the date of implementation of GST. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Section 28 of CGST Act, 2017 provides for amendment of Registration. Rule 11(2) of Returns as approved by GST Council provides that where the change relates to legal name of business, address of the principal place or any additional place of business or addition, deletion or re

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GST ROLL OUT – 1st SEPTEMBER 2017? – Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 4-5-2017 Last Replied Date:- 5-5-2017 – The implementation of GST in India has been taken effort since 2010. Now it has come true after making amendment in the Constitution and passing of four acts viz., Central Goods and Services Tax Act, 2017, Union Territory Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017 and the Goods and Services Tax (Compensation to States) Act, 2017. It is expected that the implementation of GST would be with effect from 1st July, 2017. The following rules have been approved by GST Council (as on 02.04.2017)- Composition Rules; Valuation Rules; Transition Rules; ITC Rules; Revised Invo

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with effect from 01.09.2017. Migration of existing assessees to GST is also another challengeable issue. 30.03.2017 was fixed as the deadline for migration to GST by the existing assessees. It is reported that only 70% of them migrating as of April 30 deadline. Migration of service tax and Central excise assessees was also low at 43.73% and 24% respectively. This lacking is to be discussed in the GST Council to be conducted at Srinagar on 18.05.2017 and 19.05.2017. It is reported in www.gst.gov.in that more than 60 lakhs tax payers enrolled on GST portal between 8th November, 2016 to 30th April, 2017. The enrolment process has been closed with effect from 01.05.2017. Data of all those who have signed the enrolment form will be migrated to

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use in CGST Act is another challenge to the assessees. Because of it every one wants to be very careful. Detailed guidelines are to be issued by the Government in this regard. The Finance Minister is keen in introducing GST by 01.07.2017. Every wing in service sectors, industries and traders wants some time to come up with the GST. Whatever date GST may be implemented there shall be a smooth transition to the new environment. Source: 1. www.gst.gov.in 2. Business Line 3. www.cbec.gov.in – Reply By KASTURI SETHI – The Reply = Dear Sir,Very informative and educative article. Writing an article is an innate art gifted by God.You are really a great hard worker coupled with appreciable stamina. God does not shower such grace on everybody. – Repl

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GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017) – Goods and Services Tax – GST – Dated:- 3-5-2017 – GOODS & SERVICES TAX (GST) (Status as on 01st May, 2017) – News – Press release

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Goods and Services Tax – Started By: – Pranay Jain – Dated:- 3-5-2017 Last Replied Date:- 4-5-2017 – Whether deemed credit of 40% in CSGT will be available to first stage dealer on SEZ goods in his stock on appointed date 01st Jul17. – Reply By Govind Gupta – The Reply = Hi Pranaylet us go into more details, ideally if goods have been subjected to any tax incidence, then ideally there should not be any credit available, the law is drafted to bring everyone on same level whether it is trader/man

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Goods and Services Tax – GST – Dated:- 3-5-2017 – Introduction The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer. Genesis 2. The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Budget for 2006-07. Initially, it was pro

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y tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-State sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely by the originating States. As for services, it is the Centre alone that is empowered to levy service tax. Since the States are not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levies and collects this tax as additional duties of customs, which is in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balances excise duties, sales tax, State VAT and other taxes levied on the like domestic product. Introduction of GST would require amendments in the Constitution so as to concurrently empower the Centre and the States to levy and collect th

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commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council. 4.1 A Goods and Services Tax Council (GSTC) shall be constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism would ensure some degree of harmonization on different aspects of GST between the Centre and the States as well as across States. One half of the total number of members of GSTC would form quorum in meetings of GSTC. Decision in GSTC would be taken by a majority of not less than three-fourth of weighted votes cast. Centre and minimum of 20 States would be requ

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e GSTC: (i) The threshold exemption limit would be ₹ 20 lakh. For special category States enumerated in article 279A of the Constitution, , threshold exemption limit has been fixed at ₹ 10 lakh. (ii) Composition threshold shall be ₹ 50 lakh. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. (iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST. (iv) There would be four tax rates namely 5%, 12%, 18% and 28%. Besides, some goods and services would be under the list of exempt items. Rate for precious metals is yet to be fixed. A cess over the peak rate of 28% on certain specified luxury and demerit goods would be imposed for a period of five years to compensate States for any revenue loss on account of im

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) Four rules on input tax credit, composition levy, transitional provisions and valuation have been recommended. Further five Rules on registration, invoice, payments, returns and refund, finalized in September, 2016 and as amended in light of the GST bills introduced in the Parliament, have also been recommended. Salient Features of GST 6. The salient features of GST are asunder: (i) GST would be applicable on supply of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services. (ii) GST would be based on the principle of destination based consumption taxation as against the present principle of origin based taxation. (iii) It would be a dual GST with the Centre and the States simultaneously levying it on a common base. The GST to be levied by the Centre would be called Central GST (CGST) and that to be levied by the States [including Union territories with legislature] would be called State GST (SGST). Union ter

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) Special Additional Duty of Customs (SAD); g) Service Tax; h) Cesses and surcharges insofar as they relate to supply of goods or services. (ix) State taxes that would be subsumed within the GST are: a) State VAT; b) Central Sales Tax; c) Purchase Tax; d) Luxury Tax; e) Entry Tax (All forms); f) Entertainment Tax (except those levied by the local bodies); g) Taxes on advertisements; h) Taxes on lotteries, betting and gambling; i) State cesses and surcharges insofar as they relate to supply of goods or services. (x) GST would apply to all goods and services except Alcohol for human consumption. (xi) GST on five specified petroleum products (Crude, Petrol, Diesel, ATF & Natural gas) would be applicable from a date to be recommended by the GSTC. (xii) Tobacco and tobacco products would be subject to GST. In addition, the Centre would continue to levy Central Excise duty. (xiii) A common threshold exemption would apply to both CGST and SGST. Taxpayers with an annual turnover of ₹

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utilized in the following manner: a) ITC of CGST allowed for payment of CGST & IGST in that order; b) ITC of SGST allowed for payment of SGST & IGST in that order; c) ITC of UTGST allowed for payment of UTGST & IGST in that order; d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order. ITC of CGST cannot be used for payment of SGST/UTGST and vice versa. (xvii) Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers. (xviii) Input Tax Credit (ITC) to be broad based by making it available

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ing two per cent. (2%) of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. (xxiv) System of self-assessment of the taxes payable by the registered person. (xxv) Audit of registered persons to be conducted in order to verify compliance with the provisions of Act. (xxvi) Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. (xxvii) Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful misstatement. (xxviii) Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and im

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f existing taxpayers to GST regime. Benefits of GST 7. (A) Make in India (i) Will help to create a unified common national market for India, giving a boost to Foreign investment and Make in India campaign; (ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and services at every stage of supply; (iii) Harmonization of laws, procedures and rates of tax; (iv) It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth; (v) Ultimately it will help in poverty eradication by generating more employment and more financial resources; (vi) More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports; (vii) Improve the overall investment climate in the country which will naturally benefit the development in the states; (viii) Uniform SGST and IGST rates will

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axpayer and the tax administration; (vi) Will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions; (vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system; (viii) Timelines to be provided for important activities like obtaining registration, refunds, etc; (ix) Electronic matching of input tax credits all – across India thus making the process more transparent and accountable. (C) Benefit to Consumers: (i) Final price of goods is expected to be lower due to seamless flow of input tax credit between the manufacturer, retailer and service supplier; (ii) It is expected that a relatively large segment of small retailers will be either exempted from tax or will suffer very low tax rates under a compounding scheme- purchases from suc

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already appointed M/s Infosys as Managed Service Provider (MSP) at a total project cost of around ₹ 1380 crores for a period of five years. 8.1 GSTN has selected 34 IT, ITeS and financial technology companies, to be called GST Suvidha Providers (GSPs). GSPs would develop applications to be used by taxpayers for interacting with the GSTN. Other Legislative Requirements 9. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act have been passed by the Parliament and since been notified on 12th April, 2017. The State of Telangana, Bihar, Rajasthan, Jharkhand and Chhattisgarh have also passed SGST Act. Other States are expected to pass them in the month of May, 2017. 9.1 The levy of the tax can commence only after the GST Law has been enacted by all the legislatures. Also, unlike the State VAT, the date of commencement of this levy would have to be synchronized across the Centre and the States. This is because the IGST model cannot function unless the Cen

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o felt that the organizational structure and deployment of human resources needed a review for smooth and effective implementation of GST. A Working Group has after extensive deliberations and studies, submitted its Report which has been approved by the Government. 10.2 Augmentation of human resources would be necessary to handle large taxpayers base in GST scattered across the length and breadth of the country. Capacity building, particularly in the field of Accountancy and Information Technology for the departmental officers has to be taken up in a big way. A massive four-tier training programme is being conducted under the leadership of NACEN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBEC and Commercial Tax officers of State Governments. Officers of the office of CAG are also participating and getting trained in this training programme. More than 50000 officers (including around 20000 officers from States) have al

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Goods and Services Tax – GST – Dated:- 2-5-2017 – Lucknow, May 2 (PTI) The Uttar Pradesh government today approved implementation of the Goods and Services Tax (GST) in the state and the same will be passed in the Assembly in the session commencing from May 15. The decision in this regard was taken at the state cabinet meeting chaired by Chief Minister Yogi Adityanath here. The revenue of the state is likely to increase after implementation of the GST in the first session of this government, Ca

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Goods and Services Tax – Started By: – Siddharaj Deora – Dated:- 2-5-2017 Last Replied Date:- 27-7-2017 – Are works contract covered under composition scheme? If not, whether any abatement is provided as in Service Tax? And what rate will apply for supply of goods and supply of services? – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Section 10(2) of CGST Act provides that the registered person shall be eligible to opt under composition scheme, if- (a) he is not engaged in the supply of services other than supplies referred to in clause (b) of para 6 of Schedule II; (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; (c) he is not engaged in making any inter-State outward supplies of goods; (d

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Goods and Services Tax – Started By: – CA AJAY KUMAR AGRAWAL – Dated:- 2-5-2017 Last Replied Date:- 17-6-2017 – Dear all, By the time learned members must have an idea of shape of GST in area based exemption states like HP & UK. Please share your valuable views or share link of relevant articles. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = It is learnt that the same may likely to be continued in GST regime. – Reply By CA AJAY KUMAR AGRAWAL – The Reply = Thank you sir very much. My query was specifically regarding whether they have to avail ITC on the transition date & then pay GST or whether they will be eligible to avail ITC after completion of Exemption period & have to pay GST now without availing ITC. – Reply By MARIAPP

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 2-5-2017 – Section 66B of the Finance Act, 1994 provides that there shall be levied a tax at the rate of fourteen per cent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed. The central excise duty is leviable on the manufacturing of goods. GST, being subsumed service tax and central excise duty, levies tax on the concept of supply. The key word that is to be remembered by the stakeholders is supply . In this article the meaning of the term supply and the types of various supplies are discussed for the information of the readers. Supply Section 7 of the Act defines the term supply including- all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a co

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inuously or on recurrent basis, under the contract whether or not by means of a wire, cable, pipeline or other conduit, and for which the suppler invoices the recipient on a regular or periodic basis and includes supply of such goods as Government may, subject to such conditions as it may, by notification, specify. Section 2(33) defines the expression continuous supply of services as a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract for a period exceeding three months with periodic payment obligation and includes supply of such services as the Government may, subject to such conditions, as it may, by notification, specify. Inward supply Section 2(67) defines the expression inward supply in relation to a person, as receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration. Outward supply Section 2(83) defines the expression outward supply in relation to a tax

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the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. Inter-State supply Section 7 of Integrated Goods and Services Tax Act, defines the expression inter-State Supply as supply of goods, where the location of the supplier and place of supply are in- two different States; two different Union territories; or a State and a Union territory shall be treated as a supply of goods in the course of inter-State trade or commerce. Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce. Where the location of the supplier and the place of supply are in- two different States; two different Union territories; or a State and a Union territory shall be treated as a supply of service in the course of inter-State trade or commerce. Supply of services imported into the territory of India shall be tre

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pplies made to a tourist referred to in Section 15. The supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply. The intra-State supply of services shall not include supply of services to or by a Special Economic Zone developer or a Special Economic Zone unit. Explanation 1. -for the purposes of this Act, where a person has- an establishment in India and any other establishment outside India; an establishment in a State or Union territory and any other establishment outside that State; or an establishment in a State or Union territory and any other establishment being a business vertical registered with that State or Union territory, then such establishments shall be treated as establishments of distinct persons. Explanation 2. – A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an est

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For kind attention of Honourable Prime Minister and Finance Minister. Meaning of services – there seems serious and fatal flaw in definition clause in GST laws – Goods and Services Tax – GST – By: – CA DEV KUMAR KOTHARI – Dated:- 2-5-2017 – Relevant laws: THE CENTRAL GOODS AND SERVICES TAX ACT, 2017. In short CGST THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017. In short IGST THE UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017. In short UTGST THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017. In short GST Compensation. Common definition or meaning of services : Definitions or meaning provided in the CGST are adopted in IGST and UTGST, unless specific definition is provided in them. We find that meaning of services is provided in CGST and not in IGST, UTGST and GST Compensation. Therefore meaning of services as per CGST is applicable in IGST, UTGST, and GST Compensation. We also find that few specific services have been defined in CGST, IGST and UTGST. Relevant provisions a

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t defined in this Act but defined in the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act, the State Goods and Services Tax Act, and the Goods and Services Tax (Compensation to States) Act, shall have the same meaning as assigned to them in those Acts. Analysis of meaning of Services as per S.2 (102) of CGST: services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; Analysis: Although the definition clause starts with standard sentence unless the context otherwise requires , however in relation to services we find that: A meaning has been given by use of expression services means Service means anything- this connotes that it should be thing. A service is generally not a thing. Thing should be other than goods, money and secur

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eneral or special order for removal of difficulties as provided in S.172, which is reproduced below: Removal of difficulties. 172. (1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty: Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament. Hope and expectation: Author hopes that he is correct and is not unaware or unconscious of any hidden aspect of meaning of services as provided in CGST Act and as discussed above. Author also hopes that Honourable P

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