Goods and Services Tax

Section 22 – Acts – MISCELLANEOUS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 22 – Power to make rules. 22. (1) The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act. (2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be o

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Section 21 – Acts – MISCELLANEOUS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 21 – Import of services made on or after the appointed day. 21. Import of services made on or after the appointed day shall be liable to tax under the provisions of this Act regardless of whether the transactions for such import of services had been initiated before the appointed day: Provided that if the tax on such import of services had been paid in full under the existing law, no tax shall be payable o

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Section 20 – Acts – MISCELLANEOUS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 20 – CHAPTER IX MISCELLANEOUS Application of provisions of Central Goods and Services Tax Act. 20. Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to,- (i) scope of supply; (ii) composite supply and mixed supply; (iii) time and value of supply; (iv) input tax credit; (v) registration; (vi) tax invoice, credit and debit notes; (vii) accounts and records; (viii) returns, other than late fee; (ix) payment of tax; (x) tax deduction at source; (xi) collection of tax at source; (xii) assessment; (xiii) refunds; (xiv) audit; (xv) inspection, search, seizure and arrest; (xvi) d

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ce, the operator shall collect tax at such rate not exceeding two per cent, as may be notified on the recommendations of the Council, of the net value of taxable supplies: Provided also that for the purposes of this Act, the value of a supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier: Provided also that in cases where the penalty is leviable under the Central Goods and Services Tax Act and the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the penalty leviable under this Act shall be the sum total of the said penalties. 1[

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Section 19 – Acts – APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 19 – Tax wrongfully collected and paid to Central Government or State Government. 19. (1) A registered person who has paid integrated tax on a supply considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall be granted refund of the amount of integrated tax so paid in such manner and subject to such conditions as may be p

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Section 18 – Acts – APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 18 – Transfer of input tax credit. 18. On utilisation of credit of integrated tax availed under this Act for payment of,- (a) Central tax in accordance with the provisions of sub-section (5) of section 49 of the Central Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the central tax account in such manner and within such time as may be prescribed; (b) Union territory tax in accordance with the provisions of section 9 of th

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Section 17 – Acts – APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 17 – CHAPTER VIII APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS Apportionment of tax and settlement of funds. 17. (1) Out of the integrated tax paid to the Central Government,- (a) in respect of inter-State supply of goods or services or both to an unregistered person or to a registered person paying tax under section 10 of the Central Goods and Services Tax Act; (b) in respect of inter-State supply of goods or services or both where the registered person is not eligible for input tax credit; (c) in respect of inter-State supply of goods or services or both made in a financial year to a registered person, where he does no

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due date for furnishing of annual return for such year in which the supply was received, the amount of tax calculated at the rate equivalent to the central tax on similar intra-State supply shall be apportioned to the Central Government. (2) The balance amount of integrated tax remaining in the integrated tax account in respect of the supply for which an apportionment to the Central Government has been done under sub-section (1) shall be apportioned to the,- (a) State where such supply takes place; and (b) Central Government where such supply takes place in a Union territory: Provided that where the place of such supply made by any taxable person cannot be determined separately, the said balance amount shall be apportioned to,- (a) each of

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ouncil, be apportioned at the rate of fifty per cent. to the Central Government and fifty per cent. to the State Governments or the Union territories, as the case may be, on ad hoc basis and shall be adjusted against the amount apportioned under the said sub-sections.] (3) The provisions of sub-sections (1) and (2) relating to apportionment of integrated tax shall, mutatis mutandis, apply to the apportionment of interest, penalty and compounding amount realised in connection with the tax so apportioned. (4) Where an amount has been apportioned to the Central Government or a State Government under sub-section (1) or sub-section (2) or sub-section (3), the amount collected as integrated tax shall stand reduced by an amount equal to the amount

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Section 16 – Acts – ZERO RATED SUPPLY – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 16 – CHAPTER VII ZERO RATED SUPPLY Zero rated supply. 16. (1) zero rated supply means any of the following supplies of goods or services or both, namely:- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. (2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services

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Section 15 – Acts – REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 15 – CHAPTER VI REFUND OF INTEGRATED TAX TO INTERNATIONAL TOURIST Refund of integrated tax paid on supply of goods to tourist leaving India. 15. The integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditions and safeguards as may be prescribed. Explanation.-For the purposes

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Section 14 – Acts – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 14 – Special provision for payment of tax by a supplier of online information and database access or retrieval services 14. (1) On supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services: Provided that in the case of supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non- taxable online r

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payment in any manner nor is responsible for the payment between the non-taxable online recipient and the supplier of such services; (c) the intermediary involved in the supply does not authorise delivery; and (d) the general terms and conditions of the supply are not set by the intermediary involved in the supply but by the supplier of services. (2) The supplier of online information and database access or retrieval services referred to in sub-section (1) shall, for payment of integrated tax, take a single registration under the Simplified Registration Scheme to be notified by the Government: Provided that any person located in the taxable territory representing such supplier for any purpose in the taxable territory shall get registered an

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Section 13 – Acts – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 13 – Place of supply of services where location of supplier or location of recipient is outside India. 13. (1) The provisions of this section shall apply to determine the place of supply of services where the location of the supplier of services or the location of the recipient of services is outside India. (2) The place of supply of services except the services specified in sub-sections (3) to (13) shall be the location of the recipient of services: Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services. (3) The place of supply of the following services shall be the location where the services are actually performed, namely:- (a) services supplied in respect of goods which are required to be made physically available by the recipient of

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lace of supply of services supplied directly in relation to an immovable property, including services supplied in this regard by experts and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carrying out or co-ordination of construction work, including that of architects or interior decorators, shall be the place where the immovable property is located or intended to be located. (5) The place of supply of services supplied by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place where the event is actually held. (6) Where any services referred to in sub-section (3) or sub-section (4) or sub-section (5) is supplied at more than one location, including a location

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ing yachts but excluding aircrafts and vessels, up to a period of one month. Explanation.-For the purposes of this sub-section, the expression,- (a) account means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account; (b) banking company shall have the same meaning as assigned to it under clause (a) of section 45A of the Reserve Bank of India Act, 1934; (2 of 1934.) (c) financial institution shall have the same meaning as assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934; (2 of 1934.) (d) non-banking financial company means,- (i) a financial institution which is a company; (ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; or (iii) such other non-banking institution or class of such institutions, as the Reserve Bank of India may, with

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he following non-contradictory conditions are satisfied, namely:- (a) the location of address presented by the recipient of services through internet is in the taxable territory; (b) the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory; (c) the billing address of the recipient of services is in the taxable territory; (d) the internet protocol address of the device used by the recipient of services is in the taxable territory; (e) the bank of the recipient of services in which the account used for payment is maintained is in the taxable territory; (f) the country code of the subscriber identity module card used by the recipient of services is of taxable territory; (g) the location of the fixed land line through which the service is received by the recipient is in the taxable territory. (13) In order to prevent double taxation or non-taxation of the supp

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Section 12 – Acts – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 12 – Place of supply of services where location of supplier and recipient is in India 12. (1) The provisions of this section shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India. (2) The place of supply of services, except the services specified in sub-sections (3) to (14),- (a) made to a registered person shall be the location of such person; (b) made to any person other than a registered person shall be,- (i) the location of the recipient where the address on record exists; and (ii) the location of the supplier of services in other cases. (3) The place of supply of services,- (a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any serv

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or boat or vessel is located in more than one State or Union territory, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. (4) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed. (5) The place of supply of services in relation to training and performance appraisal to,- (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location where the services are actually performed. (6) The place of supply of services provided by way of admission to a cultural, artistic, sporting, s

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charged for supply of services relating to such event, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. (8) The place of supply of services by way of transportation of goods, including by mail or courier to,- (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation. 1[Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods.] (9) The place of supply of passenger transportation service to,- (a) a registered person, shall be the location of such person; (b) a person other than

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nication line, leased circuits,internet leased circuit, cable or dish antenna, be the location where the telecommunication line, leased circuit or cable connection or dish antenna is installed for receipt of services; (b) in case of mobile connection for telecommunication and internet services provided on post-paid basis, be the location of billing address of the recipient of services on the record of the supplier of services; (c) in cases where mobile connection for telecommunication, internet service and direct to home television services are provided on pre-payment basis through a voucher or any other means,- (i) through a selling agent or a re-seller or a distributor of subscriber identity module card or re-charge voucher, be the address of the selling agent or re-seller or distributor as per the record of the supplier at the time of supply; or (ii) by any person to the final subscriber, be the location where such prepayment is received or such vouchers are sold; (d) in other cases

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or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. (12) The place of supply of banking and other financial services, including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services: Provided that if the location of recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services. (13) The place of supply of insurance services shall,- (a) to a registered person, be the location of such person; (b) to a person other than a registered person, be the location of the recipient of services on the records of the supplier of services. (14) The place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for the States or Union territories identified in the contrac

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Place of supply of goods imported into, or exported from India. – Section 11 – Acts – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 11 – Place of

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Section 10 – Acts – PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 10 – CHAPTER V PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH Place of supply of goods other than supply of goods imported into, or exported from India. 10. (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,- (a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient; (b) where the goods are delivered by the supplier to a recipient or any other person

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Section 9 – Acts – DETERMINATION OF NATURE OF SUPPLY – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 9 – Supplies in territorial waters. 9. Notwithstanding anything contained in this Act,- (a) where the location of the supplier is in the territorial waters, the location of such supplier; or (b) where the place of supply is in the territorial waters, the place of supply, shall, for the purposes of this Act, be deemed to be in the coastal State or Union territory where the nearest point o

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Section 8 – Acts – DETERMINATION OF NATURE OF SUPPLY – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 8 – Intra-State supply. 8. (1) Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply: Provided that the following supply of goods shall not be treated as intra-State supply, namely:- (i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit; (ii) goods imported into the territory of India till they cross the customs frontiers of India; or (iii) supplies made to a tourist referred to in section 15. (2) Subject to the provisions of section 12, s

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Section 7 – Acts – DETERMINATION OF NATURE OF SUPPLY – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 7 – CHAPTER IV DETERMINATION OF NATURE OF SUPPLY Inter-State supply 7. (1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in- (a) two different States; (b) two different Union territories; or (c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce. (2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce. (3) Subject to the provisions of section 12, supply of ser

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Section 6 – Acts – LEVY AND COLLECTION OF TAX – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 6 – Power to grant exemption from tax. 6. (1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification. (2) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by special order in each case, under

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Section 5 – Acts – LEVY AND COLLECTION OF TAX – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 5 – CHAPTER III LEVY AND COLLECTION OF TAX Levy and collection. 5. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services 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 and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person: Provided that the integrated tax on

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ll be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. 1[(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of go

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oes not have a physical presence in the taxable territory and also does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax. ****** Notes 1. Substituted vide Integrated Goods and Services Tax (Amendment) Act, 2018 w.e.f 01-02-2019 before it was read as "(4) The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relati

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Section 4 – Acts – ADMINISTRATION – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 4 – Authorisation of officers of State tax or Union territory tax as proper officer in certain circumstances 4. Without prejudice to the provisions of this Act, the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the proper officers for the purposes of this Act, subject to such exceptions and conditions as the Government s

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Appointment of officers. – Section 3 – Acts – ADMINISTRATION – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 3 – CHAPTER II ADMINISTRATION Appointment of officers. 3. The Board may appoint suc

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Section 2 – Acts – PRELIMINARY – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 2 – Definitions. 2. In this Act, unless the context otherwise requires,- (1) Central Goods and Services Tax Act means the Central Goods and Services Tax Act, 2017; (2) central tax means the tax levied and collected under the Central Goods and Services Tax Act; (3) continuous journey means a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued. Explanation.-For the purposes of this clause, the term stopover means a place where a passenger can disembark either to transfer to another conveyance or break his journey for a certain period in order to resume it at a later point of time; (4) customs frontiers of India means the l

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upply services or to receive and use services for its own needs; (8) Goods and Services Tax (Compensation to States) Act means the Goods and Services Tax (Compensation to States) Act, 2017; (9) Government means the Central Government; (10) import of goods with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India; (11) import of services means the supply of any service, where- (i) the supplier of service is located outside India; (ii) the recipient of service is located in India; and (iii) the place of supply of service is in India; (12) integrated tax means the integrated goods and services tax levied under this Act; (13) intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account; (14) lo

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shment elsewhere), the location of such fixed establishment; (c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and (d) in absence of such places, the location of the usual place of residence of the supplier; (16) non-taxable online recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory. Explanation.-For the purposes of this clause, the expression governmental authority means an authority or a board or any other body,- (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent. or more participation by way of equi

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t tax , in relation to a taxable person, means the integrated tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis; (19) Special Economic Zone shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (20) Special Economic Zone developer shall have the same meaning as assigned to it in clause (g) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005) and includes an Authority as defined in clause (d) and a Co-Developer as defined in clause (f) of section 2 of the said Act; (21) supply shall have the same meaning as assigned to it in section 7 of the Central Goods and Services Tax Act; (22) taxable territory means the territory to which the provisions of this Act apply; (23) zero-rated supply shall have the meaning assigned to it in section 16; (24) words and expressions used and not defined in this A

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Section 1 – Acts – PRELIMINARY – INTEGRATED GOODS AND SERVICES TAX ACT, 2017 – Section 1 – THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 No. 13 of 2017 Dated: 12th April 2017 An Act to make a provision for levy and collection of tax on inter-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Sixty-eighth year of the Republic of India as follows:- Short title, extent and commencement

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Goods and Services Tax – GST – Dated:- 27-3-2017 – New Delhi, Mar 27 (PTI) Finance Minister Arun Jaitley today introduced in Lok Sabha four bills on Goods and Services Tax, providing for a maximum GST rate of 40 per cent, an anti- profiteering authority and arrests for evading taxes. With this, rollout of GST – the biggest tax reform since independence – has entered the last lap and its passage by Parliament will pave the way for integrating India as one market with one rate of tax replacing multiple state and central levies. Jaitley introduced a Central Goods and Service Tax or CGST bill which will amalgamate all the indirect central government levies like sales tax, service tax, excise duty, additional customs duty (Countervailing Duty), special additional duty of customs, surcharges and cesses. CGST provides for a maximum tax of 20 per cent. Actual rates would however be a four-tier tax structure of 5, 12, 18 and 28 per cent as approved by the GST Council. The peak rate of 40 per c

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Bill also provides for e-commerce companies to collect tax at source at a rate not exceeding 1 per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. To protect small businesses, the CGST provides for a tax of no more than 1 per cent of turnover for manufacturers with annual turnover of up to ₹ 50 lakh. A 2.5 per cent tax is prescribed for suppliers. To ensure that benefit of lower taxes is passed on to consumers, an anti-profiteering measure has been incorporated in the law. It provides for constituting an Authority to examine whether input tax credits availed by any registered taxable person, or the reduction in the price on account of any reduction in the tax rate, have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him. The law provides for arrest, ordered by no less than a Tax Commissioner, in case of suppression of any transaction or evading taxes.

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liquor for human consumption at a rate to be notified not exceeding 40 per cent, as recommended by the GST Council, said the statements of objects and reasons of the IGST bill. The 40 per cent would be apportioned equally between the Centre and the states. As Jaitley introduced the bills in the Lok Sabha, Opposition, Congress and TMC, protested saying it was not listed in today's agenda for the House. Minister of State for Parliamentary Affairs S S Ahluwalia said the bills were uploaded on the government website on the midnight of Friday. The Opposition MPs, however, took strong objection saying how could the government expect the members to check the website at midnight and why the issue was not discussed at the meeting of Business Advisory Committee last week. Dismissing the opposition objections, Speaker Sumitra Mahajan said the bills were sent to the MPs on Saturday morning and there was nothing wrong in these being tabled. The GST Council, comprising Union Finance Minister and

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MEMO – Acts – MEMORANDUM – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – MEMO – MEMORANDUM REGARDING DELEGATED LEGISLATION Clause 22 of the Union territory Goods and Services Tax Bill, 2017 seeks to empower the Government to make rules, inter-alia, in the following- (a) collection of taxes under section 7; (b) manner and time in which input tax credit will be transferred under section 10; (c) manner in which tax wrongfully collected and paid to Central Government or Union territory Government is to be refunded under section 19; (d) qualifications, the method of appointment of the members and the terms and conditions of their service for Authority of Advance Ruling under section 15; (e) form and manner in which certification of registration on provisional basis is to be issued under section 17; (f) manner in which input tax credit is to be carried forward under section 18; (g) form, manner and time in which the job worker declares inputs held in stock on behalf of the manufacturer

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ernment. 2. Sub-clause (1) of clause 15 of the Bill provides for the establishment of an Authority for Advance Ruling. 3. Sub-clause (1) of clause 16 of the Bill provides for the establishment of an Appellate Authority for Advance Ruling. 4. Sub-clause (1) of clause 21 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 established under Central Goods and Services Tax Act will be utilised for the purposes of this Bill. Thus there will be no extra financial expenditure under this Bill. 5. 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 and Union territories would be used for carrying out the various functions under the Bill. However, it is not pos

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cascading of taxes due to "tax on tax"; and (c) the credit of excise duty and service tax paid at the stage of manufacture is not available to the traders while paying the State level sales tax or value added tax, and vice-versa. Further, the credit of State taxes paid in one State cannot be availed in other States. Hence, the prices of goods and services get artificially inflated to the extent of this "tax on tax". 3. In view of the above, it has become necessary to have a Central Legislation, namely, the Union Territory 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 within a Union territory without Legislature. 4. The proposed Legislation will simplify and harmonise the indirect tax regime in the country. It is expected to reduce the cost of production and inflation in the economy, thereby making the Indian tra

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wer the Central Government to grant exemptions, by notification or by special order, on the recommendations of the Council; (c) to provide for apportionment of tax and settlement of funds on account of transfer of input tax credit between the Central Government, State Government and Union territory; (d) to provide for assistance by officers of Police, Railways, Customs, and those engaged in the collection of land revenue, including village officers, and officers of central tax and officers of the State tax to proper officers in the implementation of the proposed Legislation; (e) to provide for recovery of tax, interest or penalty payable by a person to the Government which remains unpaid, by the proper officer of central tax; (f) to establish an Authority for Advance Ruling in order to enable the taxpayer to seek a binding clarity on taxation matters from the department; (g) to provide for elaborate transitional provisions for smooth transition of existing taxpayers to goods and servic

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Notes – Acts – UNION TERRITORY 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 confers power on the Administrator to appoint officers of Union territory tax below the rank of Assistant Commissioner of Union territory tax for the administration of the proposed Act. Clause 5 provides for conditions and exceptions for exercising the powers by the Union territory tax officers. Clause 6 provides for authorisation of Central tax officers, subject to certain 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 7 provides for levy of Union territory tax on all intra-Sta

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ent may notify categories of services, the tax on intra-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 8 confers powers on the Central Government to exempt either absolutely or conditionally goods or services or both of any specified description from the whole or any part of the Union territory tax, on the recommendations of the Council. It 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 9 provides for the manner and order in which input tax credit of integrated tax and input tax credit of Union territory tax is to be utilised. Clause 10 provides for transfer of credit of Union territory tax to the integrated tax account when Union territory tax credit has been used for payment of central tax. Clause 11 provides for officers of

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rangements for carrying forward of input tax credit available under the existing law. Clause 19 provides for transitional provisions relating to job-work. Clause 20 provides for miscellaneous provisions for transition of existing tax payers in various situations. Clause 21 provides for application of specific provisions of the Central Goods and Services Tax Act to the proposed Act. Clause 22 confers powers on the Central Government to make rules for carrying out the provisions of the proposed Act on recommendations of the Council. Clause 23 confers powers on the Board to make regulations for carrying out the provisions of the proposed Act. Clause 24 provides for laying of rules, regulations and notifications made by the Central Government before each House of the Parliament. Clause 25 confers powers to the Commissioner to issue orders, instructions or directions to the Union territory tax officers for uniform implementation of the provisions of the proposed Act. Clause 26 confers power

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