Goods and Services Tax

Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 20-6-2016 – In this part the provisions relating to settlement of cases under this draft Act is discussed in detail. Chapter VIII of the Act deals with the settlement of cases. Case Section 11(d) defines the term case as any proceeding under this Act for the levy, assessment and collection of IGST before an IGST officer, or before a First Appellate Authority in connection with such levy, assessment or collection of IGST pending on the date on which an application is made. Where an order is passed by an adjudicating authority and for which the appeal period has not expired shall also be deemed to be a proceeding pending within the meaning of this clause. Where any appeal has been preferred after expiry of the period specified for filing such appeal under this Act and which has not been admitted, such appeal shall not be deemed to be a proceeding pending within the meaning of this clause. Where any Court or Appellate Tri

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been a judge of the High Court. The qualifications, eligibility conditions and the manner of selection and appointment of the National Chairman, the State Chairman, and the Members shall be such as may be prescribed on the recommendations of the Council. Functions The National Chairman and the State Chairman shall exercise such powers and discharge such functions as may be prescribed on the recommendations of the Council. State Commission The jurisdiction of the State Settlement Commission constituted under this Act shall extend to the respective State. Each Bench shall be presided over by the State Chairman and shall consist of two other Members. when one of the persons constituting a Bench, whether such person is the presiding officer or other Member of the Bench, is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the presiding officer or in the office of one or the other Members

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the jurisdictional IGST officer, the manner in which such liability has been derived, the additional amount of tax accepted to be payable by him and such other particulars as may be prescribed. The Settlement Commission shall be disposed of in the manner as detailed below- No application shall be received by the Commission, unless- the applicant has furnished the return(s), which he is or was required to furnish under the provisions of this Act; a show cause notice for demand of tax issued by the IGST officer has been received by the applicant or an order confirming the demand of tax has been issued by the IGST officer and the same is pending before the First Appellate Authority; the additional amount of tax accepted by the applicant in his application exceeds five lakh rupees; and the applicant has paid the additional amount of tax accepted by him along with interest due thereon under section 36 of the CGST Act. the Settlement Commission, if it is satisfied that the circumstances exi

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by an order, allow the application to be proceeded with, or reject the application as the case may be, and the proceedings before the Settlement Commission shall abate on the date of rejection . An application shall not be rejected unless an opportunity has been given to the applicant of being heard; A copy of every order, shall be sent to the applicant and to the jurisdictional IGST officer; Where an application is allowed, the Settlement Commission shall, within seven days from the date of order, call for a report along with the relevant records from the jurisdictional IGST officer; Such officer shall furnish the report within a period of sixty days of the receipt of communication from the Settlement Commission; Where the jurisdictional IGST officer does not furnish the report within the aforesaid period of sixty days, the Settlement Commission shall proceed further in the matter without the report of the said officer; After examination of the report of the jurisdictional IGST office

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e it or obtained by it, the Settlement Commission may pass such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the jurisdictional IGST officer and Designated Officer; An order shall not be passed in respect of an application after twelve months from the last day of the month in which the application was made, failing which the settlement proceedings shall abate, and the adjudicating authority or the First Appellate Authority, as the case may be, before whom the proceeding at the time of making the application was pending, shall dispose of the case in accordance with the provisions of this Act as if no application had been made; The period specified under this section may, for reasons to be recorded in writing, be extended by the Settlement Commission for a further period not exceeding three months; For the purposes of the time limitthe period commencing on and fr

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s unpaid, shall be recovered along with interest due thereon at the rate prescribed under section 36 of the CGST Act, as the sums due to the Central/ State Government by the jurisdictional IGST officer in accordance with the provisions of section 54 of the CGST Act; Where a settlement becomes void as provided, the proceedings with respect to the matters covered by the settlement shall be deemed to have been revived from the stage at which the application was allowed to be proceeded with by the Settlement Commission and the jurisdictional IGST officer or the First Appellate Authority, as the case may be, may, notwithstanding anything contained in any other provision of this Act, complete such proceedings before the expiry of two years from the date of the receipt of communication that the settlement became void. Order of Commission – conclusive Every order of settlement passed shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwi

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the opinion that for the purpose of protecting the interests of revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner as may be prescribed.Every provisional attachment made by the Settlement Commission shall cease to have effect from the date, the sums due to the Central Government / the State Government for which such attachment is made are discharged by the applicant and evidence to that effect is submitted to the Settlement Commission; If the Settlement Commission is of the opinion, for the proper disposal of the case pending before it, it is necessary or expedient to reopen any proceeding connected with the case but which has been completed under this Act before application for settlement15 was made, it may, with the concurrence of the applicant, reopen such proceeding and pass such order thereon as it thinks fit, as if the case in relation to which the application for settlement had been made by the applicant

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in the order of the settlement passed within the time specified in such order or within such extended period as permitted by the Settlement Commission or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted; An immunity granted to a personmay, at any time, be withdrawn by the Settlement Commission, if it is satisfied that such person had, in the course of the settlement proceedings, concealed any particular material to the settlement or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the settlement and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had no such immunity been granted; The Settlement Commission may, if it is of opinion

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Goods and Services Tax – GST – By: – SKP IDT – Dated:- 18-6-2016 Last Replied Date:- 30-12-1899 – Hope for GST being a reality in April 2017 rekindled with a positive meeting of the Empowered Committee of State Finance Ministers on 14 June 2016. Statement of the Union Finance Minister Mr. Jaitley stating a broad consensus have been built over GST bill and all the States barring one – Tamil Nadu are onboard for implementing GST. The Model GST Law would act as a broad framework and Central GST as well as State GST Acts would be based on the same. In this article we would like to focus on Section 145 of the Model GST Law which enlists provisions in relation to Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations and evaluate whether the same would open up avenues to claim tax credit which is otherwise unavailable in the current indirect tax regime. Relevant extract of Section 145 is reproduced below for ease of reference: (1) A regist

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lier law in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day; and (v) such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (2) The amount of credit under sub-section (1) shall be calculated in accordance with generally accepted accounting principles in such manner as may be prescribed. (3) The amount taken as credit under sub-section (1) shall be recovered as an arrear of tax under this Act from the taxable person if the said amount is found to be recoverable as a result of any proceeding instituted, whether before or after the appointed day, against such person under the earlier law. Now, when we decode the aforesaid provision, the following emerges – Eligibility of Input Tax Credit of the following: Tax Credit of Pertaining to Inputs held in stock Manufacture of goods which are exempt under the current indirect tax regime Inputs con

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es engaged in manufacture of goods which are currently exempt (say Pharma companies engaged in manufacture of medicines or vaccines) and are therefore unable to claim CENVAT credit/ input tax credit of the taxes paid on procurement of inputs. Companies which have opted for concessional duty rate of 2% (subject to non-availment of CENVAT credit on inputs) would also benefit from the said provision. A look at other transitional provisions Section 143 of the Model Law provides for carry forward of CENVAT credit and VAT credit lying in the balance in the return furnished under the current tax regime to the GST regime. This is a much needed clarity and shall put to rest the numerous questions of industry and other stakeholders on fate of tax credit balance accumulated under current tax regime. A separate Section 144 provides clarity on eligibility of unavailed CENVAT credit on capital goods in the current tax regime under the GST regime. This provision is also a relief as issue of restricti

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ate reports of taxes paid on procurement. This aforesaid is a welcome provision; however, it would reap benefits only if an assessee ensures that a proper system is in place to record the taxes paid on procurement. One-to-one correlation of inputs used for manufacturing process and units lying in stock or in the stock of semi-finished or finished goods is equally important. The taxpayers may have to retain and maintain invoices and supporting documents evidencing payment of taxes on procurement. Thus, the taxpayers may also review the supporting invoices and check for all the prescribed parameters are present on the invoices to claim input tax credit under the GST regime. Looking at the pace of activities at backend to roll out GST from April 2017, it would not be an overstatement that the government is ahead with GST preparedness than majority of the industry. Therefore, it is high time that businesses evaluate the aforesaid along with other provisions under Model GST law and analyse

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GST Act 2016, REGISTRATION – Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 18-6-2016 – 1. Background Model GST law provides for registration of various persons in different situations. This article aims at enlightening readers about the persons who are required to take registration and other provisions related to registration. 2. Threshold Limit In order to provide relaxation to small suppliers it is provided that every supplier shall be liable to be registered under this act in the State form where it makes a taxable supply of goods or services if its aggregate turnover in a financial year exceeds ₹ 9 lacs. However, this limit is ₹ 4 lacs for the persons conducting business in NE states including Sikkim. Her

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reverse charge (d) Non resident taxable persons (e) Persons who are required to deduct tax under section 37 (TDS) (f) Agents (g) Input service distributor (h) Supply of goods or services through electronic commerce operator, other than branded services (i) Every electronic commerce operator (j) Aggregator who supplies service under his brand name or his trade name (k) Other notified persons In the situation other than above- (l) Suppliers liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 9 lacs. (m) Supplier liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 4 lacs.

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personal use Yes 10 Non-resident persons Yes 11 Persons required to deduct TDS providing intra state supply upto ₹ 9 lacs Yes 12 Input service distributor Yes 13 Agent or the like Yes 14 Intra-state supply upto ₹ 9 lacs As an agent Yes 15 Electronic commerce operator Yes 16 Supply through electronic commerce operator – Branded or otherwise Yes 17 Aggregator – supplying services Yes 18 Intra-state supply – Exempted ₹ 5 lacs Intra-state supply – Taxable ₹ 5 lacs Yes As the aggregate turnover exceeds ₹ 10 lacs. 5. Time limit for registration Person liable to take registration under this act shall be liable to take registration within thirty days from the date on which he becomes liable to registration. Input servi

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 18-6-2016 Last Replied Date:- 30-12-1899 – In this part the provisions relating to input tax credit is discussed in detail along with other things except the provisions relating to Settlement Commission. Payment of tax etc., Section 7 provides for the payment of tax, interest, penalty or any other amount to the credit of the Government. Section 7(1) provides that every deposit made towards tax, interest, penalty, fee or any other amount is payable by a taxable person- by internet banking;or by using credit/debit cards; or by National Electronic Fund Transfer; or by Real Time Gross Settlement; or By another mode subject to such conditions and restrictions as may be prescribed in this behalf, shall be credited to the electronic cash ledger of such person to be maintained in the manner as may be prescribed. The date of credit to the account of the appropriate Government in the authorized bank shall be deemed to be the dat

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all, on his own, for the period for which the tax or any part thereof remains unpaid, pay interest at such rate as may be notified, on the recommendation of the Council, by the Central Government. Section 29(2) provides that the interest shall be calculated from the first day such tax was due to be paid. Section 29(3) provides that In case a taxable person makes an undue or excess claim of input tax credit under sub-section (10) of section 29 of the CGST Act, he shall be liable to pay interest on such undue or excess claim at the prescribed rate for the period computed in the manner prescribed. Input tax credit Section 2(1) (d) defines the term input tax as in relation to a taxable person, means the Integrated Goods and Services Tax, Central Goods and Services Tax or State Goods and Services Tax, as the case may be, charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or furtherance of his business and includes the tax payable

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ed; The amount of input tax credit on account of IGST available in the electronic credit ledger shall first be utilized towards payment of IGST and the amount remaining, if any, may be utilized towards the payment of CGST and SGST, in that order; The amount of input tax credit on account of CGST available in the electronic credit ledger shall first be utilized towards payment of CGST and the amount remaining, if any, may be utilized towards the payment of IGST; The amount of input tax credit on account of SGST available in the electronic credit ledger shall first be utilized towards payment of SGST and the amount remaining, if any, may be utilized towards the payment of IGST; The balance in the cash or credit ledger after payment of tax, interest, penalty, fee or any other amount payable under the Act or the rules made there under may be refunded in accordance with the provisions of section 38 of the CGST Act and the amount collected as IGST shall stand reduced to that extent. Electron

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e amount collected as IGST shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced from the IGST account to the CGST account in the manner and time as may be prescribed. Section 9(2) provides that on utilization of input tax credit availed under this Act for payment of tax dues under the SGST Act as per sub-section (5) of section 7, the amount collected as IGST shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced from the IGST account to the SGST account of the appropriate State Government in the manner and time as may be prescribed. Apportionment of Tax Section 10 provides the procedure for apportionment of IGST, interest, penalty and other amount collected to the Central Government and to the State Government. The following is the procedure for apportionment to the Central Government- Out of the IGST

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n unregistered person or by a taxable person paying tax under section 8 of the CGST Act, the amount of tax calculated at the rate equivalent to the CGST on similar intra-state supply shall be apportioned to the Central Government; Out of the IGST paid to the Central Government in respect of import of goods and / or services made in a year by a registered taxable person, where the such taxable person is either not eligible for input tax credit or where he does not avail of the said credit within the specified period and thus remains in the IGST account after expiry of the due date for filing of annual return for such year in which the supply was received, the amount of tax calculated at the rate equivalent to the CGST on similar intra-state supply shall be apportioned to the Central Government. The following is the procedure for appointment to the State Government- 5. The balance amount of tax remaining in the IGST account in respect of the supply for which an apportionment to the Centr

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fund of wrongly paid tax Section 30 provides that a taxable person who has paid IGST on a transaction considered by him to be an interstate supply, but which is subsequently held to be an intra-state supply, shall, upon payment of CGST and SGST in the appropriate State, be allowed to take the amount of IGST so paid as refund subject to the provisions of section 38 of the CGST Act, 2016 and such other conditions as may be prescribed. Officers under the Act Section 32 of the Act provides for the appointment of the following officers for the purposes of this Act- Principal Chief Commissioners of IGST or Principal Directors General of IGST; Chief Commissioners of IGST or Directors General of IGST; Principal Commissioners of IGST or Principal Additional Directors General of IGST; Commissioners of IGST or Additional Directors General of IGST; First Appellate Authority; Additional Commissioners of IGST or Additional Directors of IGST; Joint Commissioners of IGST or Joint Directors of IGST; De

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 18-6-2016 – Dear Professional Colleague, Key Highlights of Draft Model GST Law Recently, on June 14, 2016, the Government has put the Draft Model GST Law on public domain after getting in-principle nod from the Empowered Committee of State Finance Ministers, in a way, signalling that the GST might mark its advent from April 1, 2017. It is imperative that Trade and Industry should understand key provisions in the Draft Model GST law including the intention of the legislation along with the probable impact on their business operations. We are summarising herewith an overview and key highlights of Draft Model GST Law for easy digest: Overview of the Draft Model GST Law: The Draft Model GST Law is a model, which the Central Government and each of the State Governments would use to draft their respective Central and State GST Acts. Further, a Draft of the Integrated GST (IGST) Act, 2016 [ Draft IGST Act ], which will govern levy of

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ge basis Notification may be issued for providing specific categories of supply of goods and/or services, on which, GST is payable by the person receiving such goods and/ or services, on reverse charge basis. Composition levy A registered taxable person, whose aggregate turnover in a financial year does not exceed ₹ 50 lakhs, shall be provided an option to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not less than 1% of the turnover during the year, subject to following conditions: The benefit of composition scheme shall not be granted to a taxable person who effects any Inter-State supplies of goods and/or services The taxable person opting for composition levy shall not collect any tax from the recipient to whom goods and/ or services are supplied; No credit of input tax shall be allowed. Taxable person – Threshold limit to pay tax A person is liable to pay tax if his aggregate turnover in a financial year exceeds ₹ 1

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der reverse charge basis, receiving services of value not exceeding the amount as may be prescribed in a year for personal use, other than for use in the course or furtherance of his business. Registration: Threshold limit A supplier is required to get registered under the GST if his aggregate turnover in a Financial Year exceeds ₹ 9 lakhs and ₹ 4 Lakhs where business is conducted in any of the North Eastern States including Sikkim. No threshold exemption for persons making Inter-State supply and those who are required to pay GST under reverse charge mechanism. Place of registration A supplier has to take registration in the State from where taxable goods and/or services are supplied. Taxable Event: The taxable event under the GST regime shall be supply of goods and/ or services. Thus, meaning of the term supply plays a crucial role since under GST, tax would be levied on supply of goods & services and the present concepts of manufacture/ rendering of services/ sale wou

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n case of immovable goods); or Date of issuing invoice by supplier; or Date of receipt of payment by supplier, or Date on which recipient shows the receipt of the goods in his books of account. Time of supply of services The time of supply of services shall be as under: The date of issue of invoice or the date of receipt of payment, whichever is earlier, if the invoice is issued within the prescribed period; or The date of completion of the provision of service or the date of receipt of payment, whichever is earlier, if the invoice is not issued within the prescribed period; or (iii) The date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of (i) or (ii) do not apply. Place of supply of goods and/ or services: Since, the proposed GST framework will work on the principle of destination based consumption tax, place of supply rules plays an important role to build up a mechanism to determine taxable jurisdictions for the smooth

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e time to customers. c) Computed Value Method: Where value cannot be determined under the Comparison method, it shall be based on a computed value which shall include cost of production, manufacture or processing of the goods or, the cost of the provision of services, the charges, if any, for design & brand and amount towards profit & general expenses equal to that usually reflected in supply of goods and/or services of the same class or kind as the goods and/or services being valued which are made by other suppliers. d) Residual Method: Where the value cannot be determined under the Computed Value method, the value shall be determined using reasonable means consistent with the principles and general provisions of the Valuation Rules. Valuation in certain cases: Provisions prescribed in relation to the valuation in the case of Pure Agent (such as exclusion of the expenditure or costs incurred by the service provider as a pure agent of the recipient of service subject to the ful

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e a monthly return, electronically, of inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars as may be prescribed within 20 days after the end of such month. Return for Composition Scheme: A registered taxable person paying tax under composition scheme shall have to furnish a return for each quarter or part thereof, electronically, within 18 days after the end of such quarter. TDS Return: Every registered taxable person who is required to deduct tax at source shall furnish a return, electronically, within 10 days after the end of month in which deduction is made. Return for Input Service Distributor: Every Input Service Distributor shall file return for every calendar month or part thereof, electronically, within 13 days after the end of such month. First Return: Every registered taxable person shall have to furnish the first return from the date on which he became liable to registration till the end of the month in

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y him, may make an application in that regard to the proper officer of IGST/CGST/SGST before the expiry of two years from the relevant date in such form and in such manner as may be prescribed. However, the limitation of two years shall not apply where such tax or interest or theamount referred to above has been paid under protest. A taxable person may also claim refund of any unutilized input tax credit at the end of any tax period subject to the conditions specified. E-commerce – Tax at source to be deducted on online sales of goods and/or services Every E-commerce operator who is directly or indirectly, owns, operates or manages an electronic platform that is engaged in facilitating the supply of any goods and/or services or in providing any information or any other services incidental to or in connection therewith (like Amazon, Flipkart etc.), but shall not include persons engaged in supply of such goods and/or services on their own behalf, shall, at the time of credit of any amoun

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n of the taxable person. Issuance of Notification from retrospective effect: The Central/ State Government may, on the recommendation of the Council, make rules, including rules conferring the power to issue notifications with retrospective effect under those rules, to carry into effect the purposes of this Act. Transitional Provisions: The transitional provisions have also been provided in respect of various matters which, inter alia, includes: Migration of existing taxpayers to GST Treatment of carried forward Cenvat credit and unavailed Cenvat credit Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract Pending refund claims to be disposed of under earlier law Treatment of long term construction/ works contracts, etc. The availability of Draft Model GST Law enables the Trade and Industry to plan the transition from the existing Indirect tax regime to the GST regime. It is important that a thorough analysis of the Draft GST Law is un

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Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 17-6-2016 – 1. Background GST is a comprehensive VAT on the supply of goods or services or both. All goods and services will be subject to GST unless specifically exempted i.e. operating on negative concept. It is a tax on supply of goods or services or both except taxes on supply of the alcoholic liquor for human consumption . Draft Goods and Service Tax Act 2016 was released few days ago. The relevant provisions related to levy and collection of GST are discussed hereunder. 2. Levy This act proposed to levy tax which may be called as CGST or SGST on all the intra-State supplies of goods or services or both. The rate of tax will be applicable as per the categorisation and c

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rse charge would be having an option to pay tax at such rate as may be prescribed but not less than one percent. Further, this scheme is available only to the assessees who are not affecting any inter-state supply of goods or services. Another point to note is that if the assessee with the same PAN number is having multiple registrations than it had to exercise this compounding option in all the registrations. Assessee was restricted to collect this tax from the recipients on supplies made by it. Assessee would also not be eligible for input credit. 4. Taxable person Unlike earlier law, there is a separate section defining the meaning of the term taxable person . Taxable person means a person who carries on any business at any place in Indi

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ified persons In the situation other than above- (l) Suppliers liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 9 lacs. (m) Supplier liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 4 lacs. (for NE states including Sikkim) (n) Persons who were already registered under the earlier law subject to point (l) and (m) above. (o) Transferee in case where business is transferred. 5. Not considered as taxable persons The following persons will not be considered as taxable persons for the purpose of this act – (a) Employee providing service in the course of employment (b) P

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 17-6-2016 – Introduction Followed by the model Goods and Service Tax Act, 2016, ( Act for short) the Finance Ministry brings in its domain the draft The Integrated Goods and Service Tax, 2016 , which contains XI chapters and 33 sections. Chapter I – Preliminary – Sections 1 and 2; Chapter II – Principles for determining supply of goods and/or services in the course of interstate trade or commerce – Sections 3 and 3A; Chapter III – Levy and Collection of Tax – Section 4; Chapter IV – Place of Supply of goods and service – Section 5 and 6; Chapter V – Payment of Tax – Section 7; Chapter VI – Input tax credit – Section 8 and 9; Chapter VII – Apportionment of Tax and Settlement of Funds – Section 10; Chapter VIII – Settlement of cases – Section 10 to Section 26; Chapter IX – Miscellaneous – Section 27 to 30; Chapter X – Transitional provisions – Section 31; Chapter XI – Administration – Sections 32 and 33. Integrated Goods

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vered by the supplier to a recipient or any other person, on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person; where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient; where the goods are assembled or installed at site, the place of supply shall be the place of such installation or assembly; where the goods are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board. Where the place of supply of goods cannot be determined as above, the same

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campsite, by whatever name called and including a house boat or any other vessel; or by way of accommodation in any immovable property for organizing any marriage or reception or matters related therewith, official, social, cultural, religious or business function including services provided in relation to such function at such property;or any services ancillary to the services referred to in clause (a), (b) and (c), shall be the location at which the immovable property or boat or vessel is located or intended to be located. Where the immovable property or boat or vessel is located in more than one State, the supply of service shall be treated as made in each of the States 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 reasonable basis as may be prescribed in this behalf. Catering services Section 6(5) provides that the place of

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ting, scientific, educational or entertainment event including supply of service in relation to a conference, fair, exhibition, celebration or similar events; or services ancillary to organization of any of the above events or services, or assigning of sponsorship of any of the above events, to a registered person, shall be the location of such person; a person other than a registered person, shall be the place where the event is actually held. Where the event is held in more than one State and a consolidated amount is charged for supply of services relating to such event, the place of supply of such services shall be taken as being in the each of the States in proportion to the value of services so provided in each State as ascertained from the terms of the contract or agreement entered into in this regard or, in absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf. Transportation of goods Section 6(9) provides that the place of sup

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ssued at the same time. Conveyance Section 6(11) provides that the place of supply of services on board a conveyance such as vessel, aircraft, train or motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey. Telecommunications service Section 6(12) provides that the place of supply of telecommunication services including data transfer, broadcasting, cable and direct to home television services to any person shall- in case of services by way of fixed telecommunication 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; 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 record of the supplier of services; in cases where mobile connection for telecommunication

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gistered person, be the location of the recipient of services on the records of the supplier of services. Advertisement services to Governments Section 6(15) provides that the place of supply of advertisement services to the Central Government, a State Government, a statutory body or a local authority meant for identifiable States, shall be taken as located in each of such States and the value of such supplies specific to each State shall be in proportion to amount attributable to service provided by way of dissemination in the respective States as may be 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 reasonable basis as may be prescribed in this behalf. Other services Section 6(2) provides that the place of supply of services, except the services specified in sub-sections (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15), made to a registered person shall be the location of

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cation of the supplier and the place of supply are in the same State. Levy and Collection of IGST Section 4(1) provides for the collection of IGST on all supplies of goods and/or services made in the course of inter-State trade or commerce at the rate specified in the Schedule to this Act and collected in such manner as may be prescribed. Section 4(2) provides that the IGST shall be paid by every taxable person in accordance with the provisions of this Act. Section 4(4) provides that notwithstanding anything contained in sub-section (1) but subject to such conditions as may be notified in this behalf, no tax under this Act shall be payable by any taxable person in respect of such supplies of goods and/or services as are specified in Schedule . . . to the Act. Reverse charge mechanism Section 4(3) provides that notwithstanding anything contained in sub-section (2), the Central Government may, on recommendation of the Council, by notification, specify categories of supply of goods and/or

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Goods and Services Tax – GST – By: – Saurabh Singhal – Dated:- 16-6-2016 – Taxable Event – Supply The taxable event for levy of GST shall be supply of goods and/ or services. The term supply is defined inclusively to cover general supply and deemed supply. General supply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made for a consideration. Deemed supply includes specified transactions made without consideration. Impact Supply of services by CA, CS and CMA for a consideration shall be leviable to GST. Nature of Supply – Inter-state vs. Intra-state supplies Central GST (CGST) and State GST (SGST) will be leviable on intra-State supplies and Integrated GST

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re more or less on the same lines as existing in the current service tax regime. Impact Accordingly, time of supply of services shall be date of invoice or date of receipt of payment, whichever is earlier. In case invoice is not issued within prescribed time, time of supply will shift to the date of completion of service. The value of service shall be the price actually paid or payable for supply. Place Where Tax to be Deposited Taxable person is one who carries on business at any place in India and who is liable to be registered. Person is liable to be registered in the State from where supplies are made. Impact Tax is to be deposited in the State from where supply is made by the supplier. There are no clear provisions to determine the pla

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e ITC shall be reversed with interest. Interest is from the date of wrong availment or utilization. Returns Professionals like CA, CS and CMA are liable to file GSTR 1 (Statement of outward supplies), GSTR 2 (Statement of inward supplies), GSTR 3 (Statement of final tax and GSTR 8 (Annual return). Further, they may also be required to file GSTR 7 (Statement of TDS). Payment of Taxes Prioritization rule has been inserted for payment of taxes whereby taxes for the current period cannot be paid until the taxes/interest/late-fee/penalty in relation to returns of previous tax periods have not been deposited. Transitional Provisions Amount of CENVAT credit carried forward in a service tax return will be allowed as ITC under GST. However such carr

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Procedure of Settlement Commission – Section 26 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 26 – 26. Proce

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Section 25 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 25 – 25. Powers of Settlement Commission (1) The Settlement Commission shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under t

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Section 24 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 24 – 24. Rectification of mistakes by Settlement Commission The Settlement Commission may amend any order passed by it under section 16 so as to rectify any mistake apparent from the record, if such mistake is noticed by the Settlement Commission on its own accord, or is brought to its notice by the jurisdictional IGST officer or the applicant with

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Section 23 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 23 – 23. Bar on subsequent application for settlement in certain cases (1) Where- (i) after the passing of an order of settlement under sub- section (5) of section 16, in relation to a case, such person is convicted of any offence under this Act in relation to that case; or (ii) the case of such person is sent back to the jurisdictional IGST Office

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Section 22 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 22 – 22. Order of settlement to be conclusive Every order of settlement passed under sub-section (5) of section 16 shall be conclusive as to the matters stated therein and no matter covered by such order shall, save as otherwise provided in this Chapter, be reopened in any proceeding under this Act or under any other law for the time being in force

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Section 21 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 21 – 21. Power of Settlement Commission to send a case back to the IGST officer (1) The Settlement Commission may, if it is of opinion that any person who made an application for settlement under section 15 has not co-operated with the Settlement Commission in the proceedings before it, send the case back to the jurisdictional IGST officer or the First Appellate Authority, as the case may be, who shall thereupon dispose of the case in accordance with the provisions of this Act as if no application under section 15 had been made. (2) For the purpose of sub-section (1), the jurisdictional IGST O

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Section 20 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 20 – 20. Power of Settlement Commission to grant immunity from prosecution and penalty (1) The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 15 has co-operated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his tax liability, grant to such person, subject to such conditions as it may think fit to impose, immunity from prosecution for any offence under this Act and also either wholly or in part from the imposition of any penalty and fine under this Act, with respect to t

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Section 19 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 19 – 19. Inspection, etc. of reports The Settlement Commission shall, on an application made in this behalf, and on payment of the prescribed fee bythe applicant, for the purpose of rebutting any evidence brought on record against him in any report made by any IGST Officer or Designated officer, furnish to him a certified copy of any such report or

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Section 18 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 18 – 18. Power of Settlement Commission to reopen completed proceedings If the Settlement Commission is of the opinion (the reasons for such opinion to be recorded by it in writing) that, for the proper disposal of the case pending before it, it is necessary or expedient to reopen any proceeding connected with the case but which has been completed

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Section 17 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 17 – 17. Power of Settlement Commission to order provisional attachment to protect revenue (1) Where during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the a

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Section 16 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 16 – 16. Procedure for settlement on receipt of an application under section 15 (1) On receipt of an application under sub-section (1) of section 15, the Settlement Commission shall, within seven days from the date of receipt of the application, issue a notice to the applicant to explain in writing as to why the application made by him should be allowed to be proceeded with, and after taking into consideration the explanation provided by the applicant, it shall, within a period of forty five days from the date of the notice, by an order, allow the application to be proceeded with, or reject the application as the case may be, and the proceedings before the Settlement Commission shall abate on the date of rejection : Provided that an application shall not be rejected unless an opportunity has been given to the applicant of being heard; Pro

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fficer received under subsection (3), if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may, within 15 days of the receipt of the report, direct, for reasons to be recorded in writing, the Designated Officer to make such further enquiry or investigation and furnish a report within a period of ninety days of the receipt of such direction, on the matters covered by the application and any other matter relating to the case : Provided that where the Designated Officer does not furnish the report within the aforesaid period, the Settlement Commission shall proceed to pass an order under subsection (5) without such report. (5) After examination of the records and the report of the jurisdictional IGST officer received under sub-section (3), and the report, if any, of the Designated Officer under sub-section (4), and after giving an opportunity to the applicant and to the jurisdictional IGST officer to be heard, either in pe

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ll dispose of the case in accordance with the provisions of this Act as if no application under section 15 had been made. Provided that the period specified under this sub- section may, for reasons to be recorded in writing, be extended by the Settlement Commission for a further period not exceeding three months. (7) For the purposes of the time limit under section 51 or section 79, as the case may be, of the CGST Act and for the purposes of interest under section 36 of the said Act, in a case referred to in sub-section (1) or sub-section (6), as the case may be, the period commencing on and from the date of the application to the Settlement Commission under section 15 and ending with the date of abatement, shall be excluded. (8) The order passed under sub-section (5) shall provide for the terms of settlement including any demand by way of tax, interest, fine or penalty, the manner in which any sums due under the settlement shall be paid and all other matters to make the settlement eff

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Section 15 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 15 – 15. Application for settlement of cases (1) A taxable person may, in respect of a case or identical cases involving periodical show cause notices relating to him and pending before the adjudicating authority or the First Appellate Authority under the Act, make an application, in such form and in such manner as may be prescribed, containing a full and true disclosure of his tax liability which has not been disclosed before the jurisdictional IGST officer, the manner in which such liability has been derived, the additional amount of tax accepted to be payable by him and such other particula

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epted by him along with interest due thereon under section 36 of the CGST Act: Provided further that the Settlement Commission, if it is satisfied that the circumstances exist for not filing the return(s) referred to in clause (a) of the first proviso to subsection (1), may, after recording the reasons thereof, allow the applicant to make such application. (2) No application shall be entertained by the Settlement Commission under sub-section (1) in cases which are pending with the Appellate Tribunal or any Court. (3) No application under sub-section (1) shall be made for determination of any question having a bearing on the rate of tax or determination of liability to pay tax on goods and/or services under the Act. (4) Every application mad

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Section 27 – Draft-Bills-Reports – MISCELLANEOUS – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 27 – CHAPTER- IX MISCELLANEOUS 27. Application of certain provisions of the CGST Act, 2016 The provisions relating to registration, valuation, time of supply of goods, time of supply of services, change in rate of tax in respect of supply of services, exemption from payment of tax, input tax credit and utilization thereof, accounts and records, payment,

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Section 28 – Draft-Bills-Reports – MISCELLANEOUS – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 28 – 28. Power to make rules (1) The Central Government may, on the recommendation of the Council, by notification, make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may (i) provide for settlement of cases in accordance with Chapter VIIA of this Act; (ii) pro

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Section 29 – Draft-Bills-Reports – MISCELLANEOUS – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 29 – 29. Interest on delayed payment of tax (1) Every person liable to pay tax in accordance with the provisions of this Act or rules made there under, who fails to pay the tax or any part thereof to the account of the Central Government within the period prescribed, shall, on his own, for the period for which the tax or any part thereof remains unpaid,

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Section 30 – Draft-Bills-Reports – MISCELLANEOUS – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 30 – 30. Tax wrongfully collected and deposited with the Central or a State Government A taxable person who has paid IGST on a transaction considered by him to be an interstate supply, but which is subsequently held to be an intra-state supply, shall, upon payment of CGST and SGST in the appropriate State, be allowed to take the amount of IGST so paid as

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Section 31 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 31 – CHAPTER- X TRANSITIONAL PROVISIONS 31. Import of services or inter-state supply of goods and/or services made on or after the appointed day Notwithstanding anything contained in section 12 and 13 of the CGST Act, import of services or inter-state supply of goods and/or services made after the appointed day shall be liable to tax under the

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