Omission of Section 15. – Section 15 – Amendment Acts – CENTRAL SALES TAX – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 15 – Omission of Section 15. 15. In the Central Sales Tax Act, section 15 shal
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Omission of Section 14. – Section 14 – Amendment Acts – CENTRAL SALES TAX – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 14 – Omission of Section 14. 14. In the Central Sales Tax Act, section 14 shal
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Section 13 – Amendment Acts – CENTRAL SALES TAX – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 13 – CHAPTER IV CENTRAL SALES TAX Amendment of Section 2. 13. In the Central Sales Tax Act, 1956 (74 of 1956) (hereinafter referred to as Central Sales Tax Act), in section 2,- (a) clause (c) shall be omitted; (b) for clause (d), the following clause shall be substituted, namely:- (d) goods means- (i) petroleum crude; (ii) high speed diesel; (iii) motor spirit (commonly known as petrol); (iv) natural
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Insertion of Fourth Schedule. – Section 12 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 12 – Insertion of Fourth Schedule. 12. In the Central Excise Act, after the
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Substitution of new Schedule for Third Schedule. – Section 11 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 11 – Substitution of new Schedule for Third Schedule. 11
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Section 10 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 10 – Insertion of a new section 38B. 10. In the Central Excise Act, after section 38A, the following section shall be inserted, namely:- Savings of references to Chapter, heading, sub-heading and tariff item in Central Excise Tariff Act, 1985. "38B. Notwithstanding the repeal of the Central Excise Tariff Act, 1985 (5 of 1986.) by sub-section (1) of section 174 of the Central Goods and Services Tax
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Amendment of section 38. – Section 9 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 9 – Amendment of section 38. 9. In the Central Excise Act, in section 38, after t
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Section 8 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 8 – Insertion of new sections 3B and 3C. 8. In the Central Excise Act, after section 3A, the following sections shall be inserted, namely:- Emergency power of Central Government to increase duty of excise. ''3B. (1) Where, in respect of any goods, the Central Government is satisfied that the duty leviable thereon under section 3 should be increased and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official Gazette, amend the Fourth Schedule to substitute the rate of duty specified therein in respect of such goods in the following manner, namely:- (a) in a case
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ons under sub-section (2). Explanation.-For the purposes of this sub-section, the term "form or method", in relation to a rate of duty of excise, means the basis, including valuation, weight, number, length, area, volume or any other measure, on which the duty may be levied. (2) Every notification under sub-section (1) shall be laid before each House of Parliament, if it is in session, as soon as may be after the issue of the notification, and, if it is not in session, within seven days of its re-assembly, and the Central Government shall seek the approval of Parliament to the notification by a resolution moved within a period of fifteen days beginning with the day on which the notification is so laid before the House of the Peopl
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Amendment of section 3A. – Section 7 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 7 – Amendment of section 3A. 7. In the Central Excise Act, in section 3A, in Expl
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Section 6 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 6 – Substitution of new section for section 3. 6. In the Central Excise Act, for section 3, the following section shall be substituted, namely:- Duty specified in the Fourth Schedule to be levied "3. (1) There shall be levied and collected in such manner as may be prescribed a duty of excise to be called the Central Value Added Tax (CENVAT) on all excisable goods (excluding goods produced or manufactured in special economic zones) which are produced or manufactured in India as, and at the rates, set forth in the Fourth Schedule: Provided that the duty of excise which shall be levied and collected on any excisable goods which are produced or man
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iable for the time being in force is leviable at different rates, then, such duty shall, for the purposes of this proviso, be deemed to be leviable at the highest of those rates. Explanation 2.-For the purposes of this sub-section,- (i)"hundred per cent. export-oriented undertaking" means an undertaking which has been approved as a hundred per cent. export-oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951, (65 of 1951) and the rules made under that Act; (ii) "Special Economic Zone" shall have the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act,
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Section 5 – Amendment Acts – CENTRAL EXCISE – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 5 – CHAPTER III CENTRAL EXCISE Amendment of section 2. 5. In the Central Excise Act, 1944 (1 of 1944.) (hereinafter referred to as the Central Excise Act), in section 2,- (a) in clause (d), for the words and figures "the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985" (5 of 1986.), the words "the Fourth Schedule" shall be substituted; (b) in clause (e) t
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Section 4 – Amendment Acts – CUSTOMS TARIFF – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 4 – CHAPTER II CUSTOMS TARIFF Amendment of section 3. 4. In the Customs Tariff Act, 1975, (51 of 1975.)in section 3, – (a) in sub-section (2),- (i) in clause (ii), for item (a), the following item shall be substituted, namely:- "(a) the duty referred to in sub-sections (1), (3), (5), (7) and (9);"; (ii) in the proviso, in sub-clause (b), item (ii) shall be omitted; (b) in sub-section (6), in clause (ii), for item (a), the following item shall be substituted, namely:- "(a) the duty referred to in sub-sections (5), (7) and (9);"; (c) for sub-sections (7) and (8), the following sub-sections shall be substituted, namely:- "(7) A
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(52 of 1962.) or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and (b) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, (52 of 1962.) and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in sub-section (7) or the cess referred to in sub-section (9). (9) Any article which is imported into India shall, in addition, be liable to the goods and services tax compensation cess at such rate, as is leviable under section 8 of the Goods and Services Tax (Compensation to States) Cess Act, 2017 on a like article on its supply in
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f 1962.) and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in sub-section (7) or the cess referred to in sub-section (9). (11) The duty or tax or cess, as the case may be, chargeable under this section shall be in addition to any other duty or tax or cess, as the case may be, imposed under this Act or under any other law for the time being in force. (12) The provisions of the Customs Act, 1962 (52 of 1962.) and the rules and regulations made thereunder, including those relating to drawbacks, refunds and exemption from duties shall, so far as may be, apply to the duty or tax or cess, as the case may be, cha
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Section 3 – Amendment Acts – CUSTOMS – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 3 – Insertion of new sections 108A and 108B. 3. In the Customs Act, after section 108, the following sections shall be inserted, namely:- Obligation to furnish information. "108A. (1) Any person, being- (a) a local authority or other public body or association; or (b) any authority of the State Government responsible for the collection of value added tax or sales tax or any other tax relating to the goods or services; or (c) an income tax authority appointed under the provisions of the Income-tax Act, 1961; (43 of 1961.) (d) a Banking company within the meaning of clause (a) of section 45A of the Reserve Bank of India Act, 1934; (2 of 1934) or (e) a c
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ing of the Companies Act, 2013 (18 of 2013.); or (j) the registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988 (59 of 1988.); or (k) the Collector referred to in clause (c) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013.); or (l) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or (m) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); or (n) the Post Master General within the meaning of clause ( j) of section 2 of the Indian Post Office Act, 1898 (6 o
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in such manner as may be prescribed by rules made under this Act. (2) Where the proper officer considers that the information furnished under sub-section (1) is defective, he may intimate the defect to the person who has furnished such information and give him an opportunity of rectifying the defect within a period of seven days from the date of such intimation or within such further period which, on an application made in this behalf, the proper officer may allow and if the defect is not rectified within the said period of seven days or, further period, as the case may be, so allowed, then, notwithstanding anything contained in any other provision of this Act, such information shall be deemed as not furnished and the provisions of this Act
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Amendment of section 2. – Section 2 – Amendment Acts – CUSTOMS – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 2 – CHAPTER I CUSTOMS Amendment of section 2. 2. In the Customs Act, 1962 (52 of 1962.) (
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Section 1 – Amendment Acts – Short title and commencement – TAXATION LAWS (AMENDMENT) Act, 2017 – Section 1 – THE TAXATION LAWS (AMENDMENT) ACT, 2017 NO. 18 OF 2017 An Act further to amend the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Central Sales Tax Act, 1956, the Finance Act, 2001 and the Finance Act, 2005 and to repeal certain enactments. BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:- Short title and comme
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Goods and Services Tax – GST – Dated:- 7-4-2017 – 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 2007-08. Initially, it was pro
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vy 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 t
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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 req
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(i) The threshold exemption limit would be ₹ 20 lac. For special category States enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 10 lac. (ii) Composition threshold shall be ₹ 50 lac. 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 sin goods would be imposed for a period of five years to compensate States for any revenue loss on account of implementation of
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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 territories without legis
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y 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 ₹ 20 lac (Rs. 10 lac for s
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nner: 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 in respect of taxes paid on
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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 mis-statement. (xxviii) Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defau
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ST 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 reduce the incentive for
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stration; (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 such entities will cost less fo
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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. Suitable legislation for the levy of GST (Central GST Bill, UTGST Bill & IGST Bill and State GST Bills) drawing powers from the Constitution would be introduced in Parliament or the State Legislatures on the recommendations by the GSTC. Unlike the Constitutional Amendment, the GST Bills would need to be passed by a simple majority. The levy of the tax can commence only after the GST Law has been enacted by the respective 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 Centre and all the
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rganizational 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 have already been trained. 10.3 It is expected that a momentous reform
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GST – Understanding Goods and Services Tax (Short Presentation) – Goods and Services Tax – GST – Dated:- 7-4-2017 – GST – Understanding Goods and Services Tax (Short Presentation) – News – Press release
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GOODS & SERVICES TAX (GST) (Status as on 01st April, 2017) – Goods and Services Tax – GST – Dated:- 7-4-2017 – GOODS & SERVICES TAX (GST) (Status as on 01st April, 2017) – News – Press release
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Goods and Services Tax – Rajya Sabha today cleared the decks for the rollout of the historic Goods and Services Tax (GST) from July 1 – Lok Sabha has already cleared these bills – TMI Updates – Highlights
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Goods and Services Tax – Started By: – arun aggarwal – Dated:- 6-4-2017 Last Replied Date:- 14-4-2017 – Sir I would like to knows the procedure of valuation under GST regime as compare to the excise rules of today, in the case where intermidate goods manufactured and supplies to a related firm and valuation done as per CAS 4 and charged accordingly. Tnx – Reply By MARIAPPAN GOVINDARAJAN – The Reply = No clear picture in GST in this regard. – Reply By arun aggarwal – The Reply = Tnxand lets wait for the clarification in this regard.Arun – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 15 (1) of CGST Act, 2017 the value of a supply of goods or services or both shall be the transaction value, which is the price actua
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of Draft Rules dated 31-3-2017 for GST – Determination of Value of Supply – The value of the supply of goods or services or both between distinct persons as specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is made through an agent, shall,- (a) be the open market value of such supply; (b) if open market value is not available, be the value of supply of goods or services of like kind and quality; (c) if value is not determinable under clause (a) or (b), be the value as determined by application of rule 4 or rule 5, in that order: Provided where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to the open market
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Goods and Services Tax – Started By: – SANDESH SHINDE – Dated:- 6-4-2017 Last Replied Date:- 6-4-2017 – Dear Sir,Please explain the impact of Reimbursement of Expenses under GST regime and also advise regarding availment of GST credit on the expenses incurred by the Service provider.Thanks and Regards, Sandesh Shinde. – Reply By KASTURI SETHI – The Reply = Sir, No benefit of preparation for GST in advance as many changes are taking place frequently. We will have to wait for GST impact till its
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Goods and Services Tax – GST – By: – Rakesh Garg – Dated:- 6-4-2017 Last Replied Date:- 6-4-2017 – 1. Structure of GST in India The term GST stands for Goods and Services Tax , and would be a comprehensive indirect tax levy in India on manufacture, sale and consumption of goods as well as services at the national level. Its main objectives are to cover most of the indirect tax levies into a single tax, replacing multiple tax levies, facilitating seamless credit across the entire supply chain, overcoming the limitation of current indirect tax structure, and creating efficiencies in the tax administration. Its first target is to eliminate number of taxes and duties presently levied and imposed under the category indirect taxes in India; and to achieve the same, it will subsume Central Excise Duty, CVD, SAD, Service Tax, Central Sales Tax, VAT, Entry Tax, Entertainment tax, Luxury tax, various Cesses relating to supply of goods or services, etc. All services and goods, except alcoholic l
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ic intent of the Government, which is ease of doing business , has been diluted. It is often stated that the taxpayer shall file almost 37 returns per year under the GST. Let us understand various compliances through an illustration: To illustrate: If ABC Ltd. have it Head Office at Delhi, Factory at U.P., and Warehouse cum Office at Haryana, HP and Punjab (Total 5 offices), it would have to make at least following compliances: ABC will have GST registrations in all the 5 states in CGST, IGST and respective State GST. It will be treated as distinct person for every State even for the purposes of CGST and IGST. Therefore, ABC would have 15 registrations on PAN India basis (CGST, IGST & SGST for each and every State). We understand that it would be treated separately in all the State GST Act. But, even for the purposes of CGST and IGST, even if governed by the same statute in every state, it would be considered as distinct person. Therefore, it would have 5 registrations in the CGST
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inter-State supply, charge IGST. Even for B2C transaction of more than specified value, it might have to ascertain the address of the customer, and charge tax accordingly. Since GST is a destination based tax, if a customer comes to Delhi from UP for making purchases, tax must go to UP. ABC would maintain following ledgers for all 15 registrations separately: – Electronic Credit Ledger; b. Electronic Cash Ledger; c. Electronic liability Ledger. These ledgers are State-specific: Amount cannot be transferred from one state to another. It will pay tax very carefully for all the 15 GSTINs separately. If the IGST of, say, Delhi is wrongly paid as CGST of Delhi: then it shall first pay the IGST not paid, and then claim refund of CGST wrongly paid. ABC will file separate returns for every tax period for all the 5 States. In every State, effectively there would be 3 returns (GSTR-1/2/3) for every tax period comprising three Statues (SGST/CGST/ IGST) in every return: thus, effectively 9 return
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to its compliance list of all 15 registrations. If ABC wants to transfer its GST credit rating to input services from one unit to another, it would require separate registration as Input Service Distributor. ABC might have to deduct TDS on certain supplies; if yes, then separate TAN for deduction of TDS. If ABC transfers its office from Delhi to Mumbai, it will get cancel its registration in Delhi, and obtain new registration in Maharashtra. The list does not end here, and 5 to 6 points can easily be added looking at the nature of business. Above list certainly gives the apprehension whether GST is really a One Nation One Tax . Certainly, the Governments would not have intended the same; and therefore, the Governments and GST Council must come forward, study the GST legislations, rules and procedures deeper and between the lines, and make all the efforts to make it simpler, and easy to comply; otherwise, it would be a hard time in GST, particularly for medium and small sized industrie
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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 6-4-2017 Last Replied Date:- 7-4-2017 – Composition levy The term composition levy has not been defined in Central Goods and Services Tax Bill, 2017 ( Bill for short). Section 10 of the Bill provides for the composition levy. Section 10(1) provides that notwithstanding anything to the contrary contained in this Act but subject to the provisions of Section 9(3) and 9(4) of the Bill (Dealing with reverse charge mechanism), a registered person may opt to pay, in lieu of GST payable by him, if his aggregate turnover in the preceding financial year did not exceed ₹ 50 lakhs. The Government may increase the above said limit to ₹ 1 crore on the recommendation of GST Council. Aggregate turnover Section 2(6) of the Bill defines the term aggregate turnover as the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplie
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d person shall not be eligible to opt unless such registered persons opt to pay tax under this scheme. Lapse of option Section 10(3) provides that the option availed by a registered person shall lapse with effect from the day on which the aggregate turnover during a financial year exceeds ₹ 50 lakhs. Rate for composition levy Section 10(1) of the Bill reads with Rule 5 of Composition Rules provides that the category of registered persons, eligible for composition of levy and the specified rate as detailed below- Manufacturers, other than manufacturers of such goods as may be notified by the Government – 1%; Suppliers making supplies referred to para 6 (b) of Schedule II – 2.5%; Any other supplier eligible for composition of levy under Section 10 and the rules – 0.5% Section 10(1) provides that the an eligible registered person may opt to pay an amount calculated at the above rate but not exceeding- 1% of the turnover in State or turnover in Union territory in case of a manufactur
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from un-registered person; he was not engaged in the manufacture of goods as notified in Section 10(2)(e) during the preceding financial year. Section 10(4) provides that a taxable person, who opts this scheme, shall not collect any tax from the recipient on supplies made by him nor shall be entitled to any credit of input tax. Intimation of option Rule 1 makes an obligation to the person who opt composition levy to intimate the same in the prescribed form. Rule 1(1) provides that any person who has been granted registration on a provisional basis shall electronically file intimation in Form GST CMP – 01, duly signed, on the common portal prior to the appointed day, but not later than 30 days after the said day. Such period may be extended by the Commissioner in this behalf. Where the intimation is filed after the appointed day, the registered person shall not collect any tax from the appointed day but shall issue bill of supply for supplies made after the delay. Rule 1(2) provides tha
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ntimation in respect of all other places of business registered on the same PAN. Stock details Rule 1(4) provides that any person who files an intimation to pay tax shall furnish the details of stock, including the inward supply of goods received from unregistered persons, held by him on the day preceding the date from which he opts to pay tax under the said section, electronically in Form GST CMP – 03, on the common portal, within 60 days of the date from which the option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf. Effective date Rule 2(1) provides that the option to pay shall be effective from the beginning of the financial year, where the intimation is filed under Rule 1(3) and the appointed date where intimation is filed under Rule 1(1). The intimation shall be considered only after grant of registration to the application. His option to pay tax shall be effective from the date fixed under Registration Rule
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of such reply, either accepting the reply or denying the option to pay tax under composition levy from the date of option or from the date of the event concerning such contravention, as the case may be. Such person shall electronically furnish at the common portal, a statement in Form GST ITC 01 containing the details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock by him on the date on which the option is withdrawn or denied, within 30 days from the date from which the option is withdrawn or from the order passed in GSTCMP 07. Any intimation for withdrawal or denial of the option in respect of any place of business in any State or Union territory shall be deemed to be intimation in respect of all other places of business registered on the same PAN. Penalty Section 10(5) provides that if the proper officer has reasons to believe that a taxable person has paid tax despite not being eligible under this scheme, such person shall, addition to a
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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 5-4-2017 – Constitution amendment Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016 provides that parliament shall, by law, on the recommendations of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years. Compensation to States The Goods and Services Tax (Compensation to States) Bill, 2017 ( Bill for short) provides for the following- to provide that the financial year 2015-16 shall be taken as the base year for calculating compensation amount payable to States; the revenue to be compensated shall consist of revenues from all taxes levied by the States which are to be subsumed under the GST, as audited by C&AG; to provide that the compensation shall be released bi-monthly provisionally and final adjustment shall be done after getting audited accounts of the
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nsation shall be paid from GST Compensation Fund; and any residual amount left in the Compensation Fund after five year compensation period shall be shared equally between the Centre and the States.50% of the amount remaining unutilized in the GST Compensation Fund at the end of the transition period shall be transferred to the Consolidated Fund of India as the share of the Centre and the balances of 50% shall be distributed amongst the States and Union Territories in the ratio of their total revenues from the SGST or UGST, as the case may be, in the last year of the transition period. Bill The Bill has been introduced in the Lok Sabha. The Bill has 14 sections and one schedule. This Act extends to whole of India. The bill provides for- ascertaining the base year for calculation of compensation; calculation of base year revenue; projected revenue for any year; and The bill also proposes to levy GST compensation cess. The bill provides the procedure of levying the cess, payments, filing
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e under the erstwhile entry 54 of List II of VII Schedule to the Constitution; the CST; the entry tax, octroi,local body tax or any other tax levied by the concerned State under the erstwhile entry 52 of List II of the VII Schedule to the Constitution; the taxes on luxuries, including taxes on entertainments, amusements, betting and gambling or any other tax levied by the concerned State under the erstwhile entry 62 of List II of the VII Schedule to the constitution; the taxes on advertisement or any other tax levied by the concerned State under the erstwhile entry 55 of List II of the VII Schedule to the Constitution; the duties of excise on medicinal and toilet preparation levied by the Union but collected and retained by the concerned State Government under the erstwhile Article 268 of the Constitution; any cess or surcharge or fee leviable under entry 66 read with entries 52, 54, 55 and 62 of List II of VII Schedule to the Constitution by the State Government under any Act notified
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l, motor spirit, natural gas, aviation turbinefuel and alcoholic liquor for human consumption; tax levied under CST on the sale or purchase of petroleum crude, High speed diesel, motor spirit, natural gas, aviation turbinefuel and alcoholic liquor for human consumption; any cess imposed by the State Government on the sale or purchase of petroleum crude, High speed diesel, motor spirit, natural gas, aviation turbinefuel and alcoholic liquor for human consumption; the entertain tax levied by the State but collected by local bodies under any Act under the erstwhile entry 62 of List II of the VII Schedule to the Constitution, prior to coming into force of the provisions of Constitution (One Hundred and First Amendment) Act, 2016; Projected revenue for any year Section 6 provides that the projected revenue for any year in a State shall be calculated by applying the project growth rate over the base revenue for that State. Calculation of compensation Section 7(1) provides that the compensati
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es as certified by the C&AG; the total compensation payable shall be the difference between the projected revenue and the actual revenue calculated by a State. Section 7(4) provides the method for calculation of the loss of revenue at the end of every two months is as detailed below- the projected revenue that could have been earned by the State in absence of GST till the end of the relevant two months shall be calculated on a pro-rata basis as a percentage of total projected revenue for any financial year during the transition period; the actual revenue collected by a State till the end of relevant two months period shall be- the actual revenue from State tax collected by the State, net of refunds given by the State; the IGST apportioned to that State, as certified by the Principal Chief Controller of Accounts of CBEC; and any collection taxes levied by the State under the Act, net of refund of such taxes; the provisional compensation shall be the difference between the projected
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e on implementation of GST with effect from the date from which the provisions of CGST Act is brought into force, for a period of 5 years or for such period as may be prescribed on the recommendation of the Council. Such levy is not there in case of composition levy under Section 10 of CGST. The cess shall be levied as specified below, on the basis of value, quantity or on such basis at such rate not exceeding the rate as notified by the Central Government on recommendations of the GST Council- Sl. No. Description of supply of goods or services Tariff item, heading, sub heading, Chapter or supply of goods or services, as the case may be The maximum rate at which GST compensation cess may be collected (1) (2) (3) (4) 1 Pan Masala 2109 09 20 135% ad valorem 2 Tobacco and manufactured tobacco substitutes, including tobacco products 24 Rs.4170/- per thousand sticks or 290% ad valorem or a combination thereof, but not exceeding ₹ 4170/- per thousand sticks + ₹ 290% ad valorem 3
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ds Section 9 provides that every taxable person shall- pay the amount of cess as payable under this Act in such manner; furnish such refunds in such forms, along with the returns to be filed under the CGST Act; and apply for refunds of such cess paid in such form as may be prescribed. Crediting proceeds of Cess to Fund Section 10 provides that the proceeds of the cess shall be credited to a non lapsable fund known as the GST Compensation Fund, which shall form part of the public account of India. It shall be utilized for purposes specified in Section 8. All amounts payable to the States shall be paid out of the fund. Distribution of balance amount 50% of the amount remaining unutilized in the Fund at the end of the transition period shall be transferred to Consolidated Fund of India as the share of Centre and balance 50% shall be distributed amongst the State in the ratio of their total revenue from the State tax or the UGST, as the case may be, in the last year of the transition perio
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Rule 25 – Final Rules (Draft) – RETURNS – GST – RETURNS – Final Draft Rules 3-6-2017 – Rule 25 – 25. Conditions for purposes of appearance (1) No person shall be eligible to attend before any authority as a goods and services tax practitioner in connection with any proceedings under the Act on behalf of any registered or unregistered person unless he has been enrolled under rule 24. (2) A goods and services tax practitioner attending on behalf of a registered or an unregistered person in any pr
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