Goods and Services Tax

Clause 1 – Draft-Bills-Reports – Short title and commencement – TAXATION LAWS (AMENDMENT) BILL, 2017 – Clause 1 – Bill No. 69 of 2017 THE TAXATION LAWS (AMENDMENT) BILL, 2017 A BILL further to amend the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, 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 commencement. 01. (1) This A

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HSN Code for Pollution control equipments – Goods and Services Tax – Started By: – venkatasubramanian sivan – Dated:- 1-4-2017 Last Replied Date:- 3-4-2017 – Dear Sir,We are searching for HSN code pol

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 1-4-2017 Last Replied Date:- 3-4-2017 – Input Service Distributor The concept of Input Service Distributor ( ISD for short) was introduced in CENVAT Rules, 2004. Rule 2(m) of CENVAT Credit Rules, 2004 defines the term input service distributor as an office of the manufacturer or producer of final products or provider of output service, which receives invoices issued under rule 4A of the Service Tax Rules, 1994 towards purchases of input services and issues invoice, bill or, as the case may be, challan for the purposes of distributing the credit of service tax paid on the said services to such manufacturer or producer or provider or an outsourced manufacturing unit], as the case may be; GST also retain the concept of ISD. Section 2(61) of the Central Goods and Services Tax Bill, 2017 ( Bill for short) defines the term input service distributor as an office of the supplier of goods and/or services which receives tax invo

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Tax invoice Rule 4(2) of Service Tax Rules, 1994 provides for the issue of invoice by ISD. The said Rule provides that every input service distributor distributing credit of taxable services shall, in respect of credit distributed, issue an invoice, a bill or, as the case may be, a challan signed by such person or a person authorized by him, for each of the recipient of the credit distributed, and such invoice, bill or, as the case may be, challan shall be serially numbered and shall contain the following, namely:- the name, address and registration number of the person providing input services and the serial number and date of invoice, bill, or as the case may be, challan issued under sub-rule (1); the name and address of the said input service distributor; the name and address of the recipient of the credit distributed; the amount of the credit distributed. in case the input service distributor is an office of a banking company or a financial institution including a non-banking finan

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banking financial company, a tax invoice shall include any document in lieu thereof, by whatever name called, whether or not serially numbered but containing the information as prescribed above. Manner of distribution of credit by ISD Rule 7 of CENVAT Credit Rules, 2004 provides the manner of distribution of CENVAT credit as detailed below. The input service distributor shall distribute the CENVAT credit in respect of the service tax paid on the input service to its manufacturing units or unit providing output service or an outsourced manufacturing units, as defined in Explanation 4, subject to the following conditions, namely :- the credit distributed against a document referred to in rule 9 does not exceed the amount of service tax paid thereon; the credit of service tax attributable as input service to a particular unit shall be distributed only to that unit; the credit of service tax attributable as input service to more than one unit but not to all the units shall be distributed o

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1st of March, 2016, shall not be transferred to any outsourced manufacturing unit and such credit shall be distributed amongst the units excluding the outsourced manufacturing units. Section 20 of the bill deals with the manner of distribution of credit by ISD. Section 20(1) provides that the ISD shall distribute the credit of central tax as central tax or integrated tax as integrated tax, by way of issue of a document containing the amount of input tax credit being distributed in such manner as may be prescribed. In this regard rule is to be framed. Conditions for input service distribution Section 20(2) provides that the ISD may distribute the credit subject to the following conditions- the credit can be distributed to the recipients of credit against adocument containing such details; the amount of the credit distributed shall not exceed the amount of credit available for distribution; the credit of tax paid on input services attributable to a recipient of credit shall be distribute

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in the explanation (a) to Section 20(2) that shall be- if the recipients of the credit have turnover in their States or Union territories in the financial year preceding the year during which credit is to be distributed, the said financial year; or if some or all recipients of the credit do not have any turnover in their States or Union territories in the financial year preceding the year during which the credit is to be distributed, the last quarter for which details of such turnover of all the recipients are available, previous to the month during which credit is to be distributed. Recipient of credit The term recipient of credit is defined in the Explanation (b) to Section 20(2) as the supplier of goods and/or services having the same PAN as that of ISD. Turnover The term turnover is defined in the Explanation (c) to Section 20 (2) in relation to any registered person engaged in the supply of taxable goods not taxable under this Act, the value of turnover, reduced by the amount of

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f this entry. Entry 54 of List II of the VII Schedule to the Constitution – Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 92A of List I. (92A – Taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce. ) Manner of recovery of credit distributed in excess Section 21 of the Bill provides that where the ISD distributes the credit in contravention of the provisions contained in Section 20 resulting in excess distribution of credit to one or more recipients of credit, the excess credit to distributed shall be recovered from such recipients along with interest, and the provisions of Section 73 or Section 74, as the case may be, shall mutatis mutandis, apply for determination of amount of tax to be recovered. Section 73 of the Bill provides for the determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed o

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Goods and Services Tax – GST – By: – Shripada Hegde – Dated:- 1-4-2017 – Clause 29A of Article 366 of the Constitution of India, inserted by 46th amendment to the Constitution gains very much importance as the same lays down the concept of deemed sale and enables the states to tax certain transactions. This was important as taxes were levied either on Sale of Goods or on Provision of Services . However in the GST Regime tax is levied on Supply of Goods and Services and the supply need not necessarily be sale. In the light of the above it is important to know how GST Regime takes care of the controversies or confusions which lead to the insertion of Clause 29A. This article tries to gather the information relating to the same. Issues Covere

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stion which merits consideration is Is there a Supply? . If a transaction is supply it is very much taxable. Supply is defined to include all form of supplies for consideration. Hence, if a person supplies commodities for a consideration, whether at his free consent or under statutory compulsion, it is taxable. Transfer of property in goods involved in the execution of works contract Under the GST regime works contract is a supply of service as per sub-clause (f) of clause 5 of Schedule II. The said entry reads as follows:- (f) works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; Hence, it is clear that the value of works contract including the value o

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Clause 29A transfer of right to use transactions were deemed to be sale. However, under the GST Regime the same is specified as service. Supply of goods by an unincorporated association or body of persons to its members Again it is Schedule II which answers our question. Clause 6 to the said schedule specifies that the supply of goods by an unincorporated association or body of persons to its members for a consideration should be considered as Supply of Goods . Further, we should also note that Supply, as per Section 3, need not be done by one person to another. Only condition is that it should be made in the course or furtherance of business. In the earlier law, in order to become sale there was requirement of two persons. Supply of food o

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Goods and Services Tax – GST – Dated:- 31-3-2017 – The Government has approved ₹ 2,256 crore outlay for Project Saksham to bolster the information technology network for the new GST regime. Project Saksham is the name given to CBEC s IT Infrastructure Project. This IT Infrastructure project will enable not just the implementation of Goods and Services tax (GST) but also support all existing services in Customs, Central Excise and Service Tax. In addition, it will also enable extension of the Indian Customs Single Window Interface for Facilitating Trade (SWIFT) and other taxpayer-friendly initiatives under Digital Indian and Ease of Doing Business of CBEC. The Central Board of Excise and Customs (CBEC) IT systems need to integrate wit

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Goods and Services Tax – Started By: – N Balachandran – Dated:- 31-3-2017 Last Replied Date:- 1-4-2017 – Can u please clarify the GST applicability on Movement of 500 ton capacity of Cranes to Site located in the various states?1. Will it Attract GST for movement from one state to another state? 2. The crane will be used for one year or two years and subsequently will be moved to other sites located in other states.N.Balachandran – Reply By KASTURI SETHI – The Reply = Categories of services und

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13th GST Council Meeting Dated:- 31-3-2017 GST Council – Minutes – Circulars – GST – Minutes of the 13th GST Council Meeting held on 31 st March 2017 The thirteenth meeting of the GST Council (hereinafter referred to as ' the Council') was held on 31 March 2017 in Vigyan Bhavan, New Delhi under the Chairpersonship of the Hon ' ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon ' ble Members of the Council who attended the meeting is at Annexure 1 . The list of officers of the Centre , the States , the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2 , 2. The following agenda items were listed for discussion in the 13 th Meeting of the Council – 1. Confirmation of the Minutes of the 12th GST Council Meeting held on 16 March 2017 2. Approval of the Draft GST Rules on: (a) Input Tax Credit (b) Valuation (c) Transit

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. ' Minutes') held on 16 March 201 7 before its confirmation. 4 . 1 . The Hon ' ble Minister from Karnataka stated that the version of the Secretary to the Counc il (hereinafter referred to as ' Secretary ' ) in paragraph 12.6 of the Minutes , in regard to levy of value A dd e d Tax (VAT) o n 'Bidi '; t h o u g h reco r ded co rr ect l y, c r eate d a n im press i o n t h at VAT was c h arge d o nl y in si x Sta t es. He s t a t e d t h at up on f ur t h er inqu i r y , it ha d co m e to hi s n o ti ce t h a t VAT o n ' Bidi ' was l evied i n about 2 1 States, n ame l y , Rajast h a n (65%) , J a m m u Kas h mir (40%) , Hi mac ha l P r a d es h (22%), De lh i (20%) , Ta mil Na du ( 1 4 . 5%) , P unj ab ( 1 4.3%) , U t tar P

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y t h e w or d s 'for exam pl e '. T h e Counc il ag r e e d to thi s s uggestio n . 5 . In v i ew of t h e above di sc u ss i o n , for Agenda item 1 , th e Co u nc il dec i ded t o a d o p t th e M inu tes of t h e 1 2th Mee tin g of t h e C o u nc il wi th th e c h ange as reco r ded be l ow : 5 .1 . I n pa r agra ph 1 2 . 6 of t h e Min u tes , to m odify t h e vers i o n of t h e Sec r etary recor d e d in the 5 t h lin e b y re pl ac in g the word ' like ' (a p pear in g befo r e t h e word ' Ra j as t ha n ' ) w i t h the wo r ds ' fo r exa mpl e ' . A g enda Item 2 : Ap p roval of the Draft GST Rules on: (a) Input Tax Credit ; (b) Valuation; (c) Transi t ional Provisions

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BEC) to m ake a br i e f prese n tat i o n on t h ese fo u r R ul es . In hi s p resentatio n , the Co mmi ss i o n er (GST P o l icy W in g) , CBEC , o u t li ned t h e sa l ient feat ur es o f t h e GST R ul es o n (a) I nput Tax Cre di t; ( b ) Va lua t i o n ; (c) Tra n sitional Prov i sions ; and (d) Co m posit i o n . T h e pr esen t a ti o n i s at t ac h e d as Ann e xure 3 to t h e Minutes . 6 . 2 . Th e Secre t ar y i n for m ed that the co mm e n ts of the officers on t h ese four R ul es h ad a l read y been ta k e n note of and i nv i ted f u rt h er comme n ts of t h e Ho n ' b l e Mem b ers of t h e Cou n ci l . T he Ho n ' b le M in is t e r f r o m K era l a p o in ted o u t t h at R ul e 5 of t h e Va lu at i o n R ul

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d w h i l e formu l a tin g t h e Ru l es. 6 . 3 . T h e Hon ' bl e De p u t y Chief Mi n ister of De l h i observed th at w h i l e t h e GST l aw pr o v i ded a b roa d framework , t h e GST R ul es dea l t wi th th e n i tt y – gr i tty of proce du res a n d th ey n ee d ed more time to s tu d y th e R ul es. T h e Secretary s t a t ed t h a t t h e i ndu stry a n d bu si n es s h ad been demanding th ree c l ear m o nth s afte r th e f in a l isat i on of t h e GST Laws a nd R ul es to p re p a r e t h e m se l v e s for t h e c h a n ge – over to th e GST r eg im e. He reca ll ed t h at t h e f i ve GST Rul es on Registrat i o n , Re tu r n , Pay m e n t , R efu nd and I n vo i ce an d Deb it / Credit Note had been p u t in t h e pub li c d

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9;ble Chairperson stated that presently the Central Goods and Services Tax (CGST) Act would apply to all States except Jammu Kashmir but once the Jammu Kashmir law on GST integrated itself to the CGST, the existing exception in regard to the State of Jammu Kashmir in CGST would be removed by exercising the power under Section 172 of the CGST Act regarding removal of difficulties. The Hon'ble Minister from Jammu Kashmir informed that Section 173 and 174 of the Model SGST Bill relating to amendments and repeal and saving of existing law would not apply to his State as there were no such provisions in their legislation to be deleted. He further added that his State would draft its SGST Law in consultation with the Law Committee of officers and the Council and that they hoped to enact their SGST law by the end of May, 2017. 7. For agenda item 2 , the Council approved, in principle, the four draft GST Rules, namely, Input Tax Credit; Valuation; Transitional Provisions; and C

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pproved by the Council, changes on account of a new Union Territory Goods and Services Tax (UTGST) Act and minor editorial corrections for coherence in the revised law. He informed that these changes were discussed in the meeting of the officers held today and the suggestions made by them for making certain changes in these five Rules were taken note of and would be incorporated suitably. He then invited Commissioner (GST Policy Wing), CBEC to make a brief presentation on the changes made in these five Rules. The presentation made before the Council is enclosed as Annexure 3 to the Minutes. 8.2 The Secretary invited comments of the Members on the changes proposed in the five draft Rules. The Hon'ble Minister from Nagaland stated that Rule 1(e) of the Tax Invoice Rules provided that the name and address of an unregistered recipient should be recorded in the tax invoice only where the value of taxable supply was ₹ 50,000 or more. He observed that as per the Business Proc

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y stated that during the morning meeting of the officers, this issue was discussed and it was recognised that reduction in the monetary limit from ₹ 50,000 to ₹ 20,000 for recording the address of the purchaser in the Business to Consumer (B2C) transaction would have to be done on an all-India basis to track the flow of funds to a State of the North-East for the purchases made by traders of those State from big cities like Kolkata or Guwahati. He stated that in this view, lowering the monetary limit from ₹ 50,000 to ₹ 20,000 only for the smaller States of the North-East would not meet the concern of these States. He added that most of the other States were not in favour of applying this lower threshold at an all-India level as they felt that this would considerably increase the compliance burden on the taxpayers as well as the buyers. He suggested that an alternative method to address the revenue concern of the smaller States of the North-East could be to encour

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e M ini ste r f r o m C hh a tti sgar h state d t h at as E nt ry 52 of List II of Sc h edu l e 7 of the Co n st i t uti o n re l at i ng to taxatio n powe r of Ent r y Tax b y Sta t es s t oo d de l ete d , t h e prov i s i o n to i ss u e For m C fo r i n ter – State sales of p e tr o l e um p rod u cts sho u l d b e d o n e away wit h . He s t a t e d th at w ithout t hi s a m end m e n t, p e t ro leu m p rod uct s wo ul d be i mpo rte d fro m ot h e r States a t a co nc ess i o n a l ra t e o f 2% CST w h ic h wo uld l ea d to co n s id e r a bl e l oss o f r even u e to t h e im po rt i n g S t ate . He s u ggeste d t h a t duri n g the GST reg im e, a ll States s h o ul d p ay t ax at n o r ma l r ate fo r in ter – S t ate sa l

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start work on fitment of rates of goods and services under GST. The desirability of sharing the proposed rates of tax on goods and services in advance of the Meeting of the Council was discussed. The Hon'ble Minister from Jammu Kashmir stated that the proposed rates of tax should not be put in public domain in advance as this would create distortions in the market. The Hon'ble Minister from Kerala supported this suggestion. The Hon'ble Deputy Chief Minister of Delhi stated that their present practice was not to inform the proposed changes to the rates of VAT in advance as this led to hoarding and black marketing of goods and suggested that the rates of tax should not be notified in advance in the GST regime. The Secretary suggested that the agenda relating to GST rates of goods and services could be brought on the table for the Council's discussion on the day of the meeting itself instead of circulating it in advance. The Hon'ble Deputy Chief Minister of Delhi sup

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be reimbursed to the eligible industries in the States where area-based Central Excise exemption was in force. He informed that the Department of Industrial Policy and Promotion (DIPP) in the Ministry of Commerce and Industry was devising a re-imbursement scheme and stated that they should be ready with the scheme before 1 July 2017. He also advised that the Tax Research Unit in the Department of Revenue should follow up this matter with the DIPP. 13. The Hon'ble Minister from Uttar Pradesh stated that his State had an outstanding CST compensation due of ₹ 280 crore and enquired as to when this would be disbursed by the Central Government. The Secretary stated that 50% of the compensation amount had already been disbursed as part of the first instalment and that the remaining 50% was due to be paid today. He stated that an additional compensation requirement of ₹ 1,000 crore had arisen and that they were pursuing for release of this amount from the Department of Expe

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15. The Hon'ble Chairperson observed with satisfaction that the nine primary GST Rules had been approved by the Council. He observed that the next important items of work for the roll out of GST were to complete the drafting of the remaining minor GST Rules and to complete the fitment of GST rates of goods and services. He stated that the remaining Rules should be drafted by the Law Committee of Officers at an early date and should be put in the public domain. He further stated that after taking into account the comments from the public, the remaining GST Rules should be presented to the Council for approval during its next meeting. He further stated that the officers would prepare the fitment rates for goods and services and bring it for discussion in the next Meeting of the Council. After deliberation, the Council agreed to hold its next meeting on 18 and 19 May, 2017 in Srinagar. 16. The meeting ended with a vote of thanks to the Chair. (Arun Jaitley) Chairperson

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Goods and Services Tax – Started By: – venkat eswaran – Dated:- 30-3-2017 Last Replied Date:- 1-4-2017 – Dear all,We need to update our promotors details in GST portal which we have already migrated, as of now not able to do this. When we can able to modify this?Thanks in advanceVenkat – Reply By Ganeshan Kalyani – The Reply = The window for modification in GSTN may be opened once GST law comes into effect. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = You may approach the GSTN in this regard

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Goods and Services Tax – GST – Dated:- 30-3-2017 – New Delhi, Mar 30 (PTI) The GST is an unique opportunity for the government to address the growing illegal cigarettes trade in the country, according to Tobacco Institute of India (TII). The institute, a body representing interests of legal cigarette makers such as ITC, Godfrey Philips and VST, also said the government must also consider the plight of distressed tobacco farmers. GST presents a unique opportunity to government to address the gro

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Goods and Services Tax – GST – Dated:- 30-3-2017 – New Delhi, Mar 29 (PTI) The historic Goods and Services Tax (GST) regime today came a step closer to meet its July 1 target of rollout, with the Lok Sabha approving four supplementary legislations. The Central GST Bill, 2017; The Integrated GST Bill, 2017; The GST (Compensation to States) Bill, 2017; and The Union Territory GST Bill, 2017 were passed after negation of a host of amendments moved by the opposition parties. Replying to the seven-hour-long debate, Finance Minister Arun Jaitley said the GST, which will usher in a uniform indirect tax regime in the country, will make commodities slightly cheaper . He said the GST rates would depend upon whether the commodity is used by a rich pe

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od articles are not taxed and those will continue to be zero rated under the GST. All other commodities would be fitted into the nearest tax bracket. The GST Council has recommended a four-tier tax structure – 5, 12, 18 and 28 per cent. On top of the highest slab, a cess will be imposed on luxury and demerit goods to compensate the states for revenue loss in the first five years of GST implementation. However, the Central GST (CGST) law has pegged the peak rate at 20 per cent and a similar rate has been prescribed in the State GST (SGST) law, which takes the peak rate to 40 per cent which will come into force only in financial exigencies. Jaitley said the cess would be transient for a period of 5 years so that the proceeds can be utilised t

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Goods and services tax – Acts, Rules, Statutory provisions – – GST – Highlights – Goods and services tax – Acts, Rules, Statutory provisions – TMI Updates – Highlights, quick notes, marquee, annotat

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Goods and Services Tax – GST – Dated:- 29-3-2017 – New Delhi, Mar 29 (PTI) Allaying apprehension of spike in prices of goods and commodities after the roll out of the GST, Finance Minister Arun Jaitley today said the tax rates will be kept at the current levels so as not to have any inflationary impact. Introducing four bills to give effect to the Goods and Services Tax (GST), Jaitley said the legislations will have to be passed by Parliament and one by each of the state assemblies to turn India into one market with a single tax rate. The Finance Minister said the aim of the GST Council is to decide everything relating to the tax structure with consensus and this is for the first time that such an arrangement has been made, based on the pr

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cise, service tax and additional customs duty is subsumed. The Integrated GST or IGST will be a tax to be levied by the Centre on inter-state movement of goods and services. The States will pass the State GST or SGST law that will allow them to levy sales tax after levies like VAT are subsumed. Besides, GST compensation law allows for imposition of cess on certain luxury goods like tobacco, high-end cars and aereated drinks to create a corpus for compensating states for any loss of revenue in the first five years of GST roll out. The fourth law introduced is on Union Territory GST or UTGST for UTs like Chandigarh and Daman and Diu which do not have assemblies. Jaitley said all decisions on GST would be taken by the GST Council, reflecting t

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Goods and Services Tax – GST – By: – Monarch Bhatt – Dated:- 29-3-2017 – Levy & collection of CGST – The clause has been added in the levy section which is making room for the government to impose CGST on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel at a later stage based on the recommendation of the council. Of course, procedure needs to be followed for amendment in constitution as well before introducing it under GST regime. Composition Levy – The changes has been for the rates provided under the composition scheme. The revised rates are as follows: Manufacturers are liable for the payment of CGST @ 1%, opting for the composition scheme. The person providing services alongwith supply of goods being food or any other article for human consumption or any drink excluding alcoholic liquor for human consumption are liable for the payment of CGST @ 2.5% under composition scheme. This will be beneficial for the small restaurants and banquet se

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ssociation or body of persons to their member. Hence, services provided by clubs and society to their members will not be liable for the payment of CGST and it will cut down long pending battle under service tax from continuing under CGST regime. Schedule III – The amendment has been made in Schedule III which provides for the activities neither to be treated as service nor to be treated as goods. Clause 6 has been added which states that actionable claim other than lottery, betting and gambling neither to be treated as supply of Goods nor as Supply of Services. It is to be noted that definition of goods includes actionable claim and therefore without this entry actionable claim over meal voucher and shopping voucher itself was getting covered under GST regime as per model GST law. Illustration: If Sodexo issuing voucher of 5000/- and charging 500/- as processing fee or transaction fees, CGST was payable on both i.e. 5000/- received towards voucher value and on 500/- received towards p

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es alongwith tax has been paid by the supplier to the provider of service within a period of 3 months. If payment has not been made by the receiver of service to the supplier of service, it will get added to the liability of receiver of such input service receiver, which will be recovered alongwith interest. This provision has been changed completely, while introducing CGST bill. As per the CGST bill, provision is applicable on the credit availed by the receiver on supply of services as well as on supply of goods or both other than credit availed of tax paid on reverse charge basis and time period has been increased from 3 months to 180 days. Therefore, if credit has been availed on services, or goods or of both (other than reverse charge credit) payment for the value as well as for the taxes must be made within a period of 180 days, otherwise it will get added to the liability of the receiver which will be recovered with interest. Further, another proviso has been also added wherein,

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 29-3-2017 – The Union Government has introduced the four GST related Bills in the Parliament (Lok Sabha or lower house) on 27th March, 2017. These four bills moved in the lower house of Parliament are the Central Goods and Services Tax (CGST) Bill, Integrated Goods and Services Tax (IGST) Bill, the Goods and Services Tax (Compensation to States) Bill and the Union Territory Goods and Services Tax (UT-GST) Bill. These Bills are crucial to implement the goods and services tax in India which is most likely to be from July, 2017. The draft of these Bills were approved by the Union Cabinet on 21st March, 2016 after all hurdles were addressed in last GSTC meeting (12th one) held o

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Bill, 2017 Parliament To authorize and administer levy of CGST in country Integrated GST Bill 2017 Parliament To authorize and administer levy of IGST on inter-state movement of goods and services UT-GST Bill 2017 Parliament To authorize and administer levy of GST in the jurisdiction of Union Territory State GST Bill 2017 Legislative assemblies of States To authorize and administer levy of SGST in the States for intra-state movement of goods and services GST (Compensation to States) Bill, 2017 Parliament To authorize Union Government to compensate the States / UTs for any revenue loss arising from introduction of GST in India for 5 years. It is expected that State Governments may pass the SGST Bills, 2017 in their respective State legislatu

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be taxed at the time of redemption Alcoholic liquor and specified petroleum products are out of GST Online services (OIDAR) will be taxed under IGST Balance in Compensation Fund after 5 year will be shared between the Centre and States States to receive provisional compensation on bimonthly basis from centre for loss of revenue from implementation Financial year 2015-16 to be the base year for computing compensation. In the meantime, GST Council shall decide on the following issues and close them before GST is introduced: Fitment of goods and services in the GST rate slabs Exemptions and abatements GST rules on registration, payment, returns, refunds invoices etc Fixation of common date for switch over to GST So far trade and industry is co

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Service Tax – Started By: – Pankaj Garg – Dated:- 28-3-2017 Last Replied Date:- 31-3-2017 – I am a freelancer in a Australia based website called freelancer.com. Freelancer.com is about getting IT work done or developing websites/softwares. Finally, whatever we earn will be received in local bank in India.Question: Am I eligible for GST or Service Tax or not? – Reply By KASTURI SETHI – The Reply = What is your expected turnover in 2017-18 ? – Reply By Pankaj Garg – The Reply = Around 5 Lakhs –

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Goods and Services Tax – GST – Dated:- 28-3-2017 – New Delhi, Mar 28 (PTI) Finance Minister Arun Jaitley today briefed lawmakers about the four GST bills introduced in Lok Sabha which will be taken up for consideration tomorrow. Jaitley told MPs that the passage of these bills, which were introduced in the Lower House yesterday, will result in one-nation one-tax regime, Parliamentary Affairs Minister Ananth Kumar told reporters after the meeting. The Finance Minister explained in detail the fou

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Goods and Services Tax – GST – Dated:- 28-3-2017 – New Delhi, Mar 28 (PTI) The GST Bills in their present form were not acceptable to the Congress, but the party sought to tread cautiously to avoid being seen as against the tax reform measure. At a key strategy meeting of Congress MPs in the Lok Sabha chaired by party vice president Rahul Gandhi, it was decided to raise the concerns of the public on the GST Bills and seek necessary amendments. According to sources, Gandhi told the members that the party should play the role of a constructive opposition and should not be seen as against the GST legislations. He also told the members to raise the issue of the farmers' distress and press for a farm loan waiver in Parliament. Senior party

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Goods and Services Tax – GST – Dated:- 28-3-2017 – New Delhi, Mar 28 (PTI) Finance Minister Arun Jaitley today said the GST bills are based on the principle of shared sovereignty and that the government wants to pass these landmark tax reforms through consensus. Jaitley was briefing the party MPs after BJP's parliamentary party meeting here which was also attended by Prime Minister Narendra Modi, Parliamentary Affairs Minister Ananth Kumar told reporters after the meeting. The finance minister in detail briefed the party MPs about all the four Goods and Service(GST) bills and said these legislations are based on the principle of shared sovereignty, Kumar said, adding they were drafted after detailed discussions in the GST council which

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Goods and Services Tax – GST – Dated:- 28-3-2017 – Q1. I am an existing PAN-based Service Tax (ST) and Central Excise (CE) assessee, and wish to enroll in GST. I have business premises and factories in the State of Telangana. Through the ACES portal, I received the Provisional ID and password for the State of Andhra Pradesh, whereas my Principle Place of Business is in Telangana. A: Assessees situated in the State of Telangana , but incorrectly issued Provisional IDs and passwords for Andhra Pradesh , have now been issued new Provisional IDs and passwords for Telangana . The previous Provisional IDs and passwords issued for Andhra Pradesh have been cancelled, and can no longer be used for migrating to GST. You are requested to get new Provisional IDs and passwords through the ACES portal at www.aces.gov.in and complete the GST migration process. In case of any difficulties, please contact the CBEC Mitra Helpdesk at cbecmitra.helpdesk@icegate.gov.in or call at the toll-free number 1800

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u. In this case, the assessee is issued five Provisional IDs and passwords, one for each State. The CR assessee may also have a factory (under Central Excise or CE registration) or a Service Tax (ST) single premises registration (independent of CR) in the State of Tamil Nadu (registration number ABCDE1234FXM001 or ABCDE1234FSD001). Then a Provisional ID and password for the State of Tamil Nadu will be issued against either the CE or ST registration number mentioned earlier. In this case, the CR assessee will get four Provisional IDs and passwords for the remaining States i.e. Delhi, Haryana, Maharashtra and Karnataka. Q3. I am an existing taxpayer and wish to enroll in GST. To complete the Provisional Registration process on the GST Common Portal, I need to enter the one-time-password (OTP) in the OTP Verification window. However, I received the OTP on my mobile number, and not on my registered email ID. A: For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in

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User name or password is not valid. Please ensure that enrollment for your State has started . A: For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal. Q6. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: Not activated . A: For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal. Q7. I am an existing PAN-based Service Tax (ST), Central Excise (CE) and State VAT assessee. I received the Provisional ID and password fro

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VAT department. For further investigation, please contact CBEC Mitra Helpdesk at cbecmitra.helpdesk@gst.gov.in or call at the toll-free number 1800-1200-232. When requesting help, please provide your registration details to CBEC Mitra Helpdesk. CBEC Mitra Helpdesk will notify you as soon as the issue is resolved. Q9. I am an existing PAN-based Service Tax (ST), Central Excise (CE) and State VAT assessee. For migrating to GST, I received the Provisional ID and password from the State VAT department. Do I also need to add my ST and CE registration details in the Enrolment Application also? A: Yes, you must add your Service Tax (ST) and Central Excise (CE) registration details in GST FORM-20 on the GST Common Portal. Note: Since GST registration is based on PAN and State, only one Provisional ID and password will be issued to a given PAN for a given State, irrespective of the number of registrations on that PAN within the State. In case the assessee wishes to enroll in GST for the other r

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has been issued against my previous registration number ST001. I logged into the ACES portal (using my existing ACES username and password), and received the Provisional ID and password for my previous registration number ST001, but not for the current registration number ST002. A: As a policy, if the assessee has multiple registrations within a State on the same PAN, only one Provisional ID and password will be issued, as per the following order: Only one Provisional ID and password will be issued to a given PAN within a State, irrespective of the number of registrations on that PAN within that State. Apparently, you have more than one registration i.e., ST001 and ST002, of which registration number ST001 is either Inactive or Surrendered . However, as per CBEC guidelines, a Provisional ID and password has already been allotted against the registration number ST001. For further assistance, please contact CBEC Mitra Helpdesk at cbecmitra.helpdesk@gst.gov.in or call at the toll-free nu

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Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further assistance. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution. Q13. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: Not activated . A: Multiple causes may have contributed to this problem. For further investigation, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution. Q14. I am an existing taxpayer and wish to enroll in GST. For

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may have been delivered to the spam folder of your registered email ID. Please check the spam folder of your email account. If you find the OTP in the spam folder, please change the spam-filter policy settings of your email account to allow legitimate emails sent by GSTN. This will ensure that a future OTP sent by GSTN is not marked or filtered as spam. If you do not find the OTP in the spam folder, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution. Q16. I am an existing taxpayer and wish to enroll in GST. While submitting GST FORM-20 with DSC, I received the error message: DSC is not registered with authorised signatory . A: Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you s

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 28-3-2017 Last Replied Date:- 28-3-2017 – Dear Professional Colleague, GST Bills – CGST, IGST, UTGST and Compensation Cess, introduced in Lok Sabha With step-by-step progress towards Goods and Services Tax ( GST ), the Country is all set to witness the biggest indirect tax reform of unmatched importance in independent India. In order to engage with the stakeholders and invite comments from the public at large, the Central Government had put the Revised Model GST Law on public domain on November 26, 2016 [First Model GST Law put on public domain on June 14, 2016]. Industry Inc made threadbare analyses of the provisions contained therein and various suggestions were submitted to the G

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ndia, Finance Minister Shri. Arun Jaitley on March 27 tabled four Bills of GST legislations in Lok Sabha. The discussion on the four Bills i.e. CGST, IGST, UTGST and Compensation Cess Bill could be taken up on Tuesday. To access the GST Bills as introduced in Lok Sabha on March 27, please access the following link: CGST Bill as introduced in Lok Sabha Compensation Cess Bill as introduced in Lok Sabha IGST Bill as introduced in Lok Sabha UTGST Bill as introduced in Lok Sabha The Government is looking at the passage of the GST Bills in the Lower House by March 29 or latest by March 30. Then, these will move to the Rajya Sabha and this gives the Government enough time to bring back any amendment adopted by the Upper House to the Lok Sabha. The

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MEMO – Acts – MEMORANDUM – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – MEMO – MEMORANDUM REGARDING DELEGATED LEGISLATION Clause 22 of the Integrated Goods and Services Tax Bill seeks to empower the Central Government to make rules, inter alia, in the following matters, namely:- (a) collection of taxes under section 5; (b) determination of place of supply under section 10; (c) apportionment of value of supply of services when the immovable property or boat or vessel is located in more than one State or Union or when the leased circuit is installed in more than one State or Union territory or when the event is held in more than one State or Union territory or for advertisement services under section 12; (d) the place of supply of services referred to in section 13 when they are supplied in more than one State or Union territory under that section; (e) conditions and safeguards for refund of integrated tax paid on supply of goods to tourist leaving India under section 15; (f) procedure

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delegation of legislative power is, therefore, of a normal character. FINANCIAL MEMORANDUM Clauses 17 and 18 of the Bill provides for apportionment of tax and settlement of funds and for transfer of input tax credit between the Central Government, State Government and Union territory. 2. Clause 20 of the Bill provides for application of provisions of the Central Goods and Services Tax Bill, 2017 relating to appeals, advance ruling and anti-profiteering. So authorities under the Central Goods and Services Tax Act will be utilised for the purposes of the proposed legislation. Thus there will be no extra financial expenditure under this Bill. 3. The total financial implications in terms of recurring and non-recurring expenditure involved in carrying out the various functions under the Bill would be borne by the Central Government. Most of the existing officers and staff of the Central Board of Excise and Customs would be used for carrying out the various functions under the Bill. However,

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r, the fact that the rate of central sales tax is different from the value added tax being levied on the intra-State sale creates a tax arbitrage which is exploited by unscrupulous elements. 3. In view of the above, it has become necessary to have a Central legislation, namely, the Integrated Goods and Services Tax Bill, 2017. The proposed Legislation will confer power upon the Central Government for levying goods and services tax on the supply of goods or services or both which takes place in the course of inter-State trade or commerce. The proposed Legislation will remove both the lacunas of the present central sales tax. Besides being vatable, the rate of tax for the integrated goods and services tax is proposed to be more or less equal to the sum total of the central goods and services tax and state goods and services tax or Union territory goods and services tax to be levied on intra-State supplies. It is expected to reduce cost of production and inflation in the economy, thereby

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ication or by special order, on the recommendations of the Council; (e) to provide for determination of the nature of supply as to whether it is an inter-State or an intra-State supply; (f) to provide elaborate provisions for determining the place of supply in relation to goods or services or both; (g) to provide for payment of tax by a supplier of online information and database access or retrieval services; (h) to provide for refund of tax paid on supply of goods to tourist leaving India; (i) to provide for apportionment of tax and settlement of funds and for transfer of input tax credit between the Central Government, State Government and Union territory; (j) to provide for application of certain provisions of the Central Goods and Services Tax Act, 2017, inter alia, relating to definitions, time and value of supply, input tax credit, registration, returns other than late fee, payment of tax, assessment, refunds, audit, inspection, search, seizure and arrest, demands and recovery, a

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Notes – Acts – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Notes – Notes on clauses Clause 1 provides for short title, extent and commencement of the proposed Act. Clause 2 defines various terms and expressions used in the proposed Act. Clause 3 provides for appointment of Commissioners and other class of officers as may be required for carrying out the purposes of the proposed Act. Clause 4 provides for authorisation of State tax and Union territory tax officers, subject to certain exceptions and conditions as shall be notified by the Central Government on recommendations of the Council, to be proper officers for the purposes of the proposed Act. Clause 5 provides for levy and collection of integrated tax on all inter-State supplies of goods or services or both except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act at a rate not exceeding forty per cent. It further provides that integrated

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son on reverse charge basis; (iv) the Central Government may notify categories of services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, on the recommendations of the Council. Clause 6 confers powers on Central Government to exempt either absolutely or conditionally goods or services or both of any specified description from the whole or part of the integrated tax, on the recommendations of the Council. This clause also confers powers on the Central Government to exempt from payment of tax any goods or services or both, by special order, on which tax is leviable on the recommendations of the Council. Clause 7 provides for instances where a supply of goods or services or both will be considered as inter- State supply. Clause 8 provides for instances where a supply of goods or services or both will be considered as intra- State supply. Clause 9 provides for supplies made in territorial waters to be de

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urists leaving India. Clause 16 provides for zero rating of certain supplies namely exports and supplies made to Special Economic Zone Unit or Special Economic Zone developer and the manner of zero rating. Clause 17 provides for apportionment of integrated tax and settlement of funds between the Central and State Government. Clause 18 provides for utilisation of credit of integrated tax availed under the proposed Act for payment of central tax, Union territory tax or State tax. Clause 19 provides for refund of integrated tax in situations where inter-State supplies are subsequently held to be intra-State supplies. Clause 20 provides for application of specific provisions of the Central Goods and Services Tax Act to the proposed Act. Clause 21 provides that all import of services made on or after the appointed day will be liable to integrated tax regardless of whether the transactions for such import of services had been initiated before the appointed day. Clause 22 confers powers on th

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Section 25 – Acts – MISCELLANEOUS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 25 – Removal of difficulties. 25. (1) If any difficulty arises in giving effect to any provision 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 removi

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Section 24 – Acts – MISCELLANEOUS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 24 – Laying of rules, regulations and notifications. 24. Every rule made by the Government, every regulation made by the Board and every notification issued by the Government under this Act, shall be laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successiv

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Power to make regulations. – Section 23 – Acts – MISCELLANEOUS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 23 – Power to make regulations. 23. The Board may, by notification, make regulati

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