THE INTEGRATED GOODS AND SERVICES TAX BILL, 2017.
GST
Dated:- 27-3-2017
THE INTEGRATED GOODS AND SERVICES TAX BILL, 2017.
GST bills – Clause by Clause
=============
Document 1
TO BE INTRODUCED IN LOK SABHA
Bill No. 58 of 2017
THE INTEGRATED GOODS AND SERVICES TAX BILL, 2017
CLAUSES
ARRANGEMENT OF CLAUSES
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
ADMINISTRATION
3. Appointment of officers.
4. Authorisation of officers of State tax or Union territory tax as proper officer in
certain circumstances.
5. Levy and collection.
CHAPTER III
LEVY AND COLLECTION OF TAX
6. Power to grant exemption from tax.
CHAPTER IV
DETERMINATION OF NATURE OF SUPPLY
7. Inter-State supply.
8. Intra-State supply.
9. Supplies in territorial waters.
CHAPTER V
PLACE OF SUPPLY OF GOODS OR SERVICES OR BOTH
10. Place of supply of goods other than supply of goods imported into, or exported
from India.
11. Place of supply of goods im
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ations.
24. Laying of rules, regulations and notifications.
25. Removal of difficulties.
TO BE INTRODUCED IN LOK SABHA
Bill No. 58 of 2017
THE INTEGRATED GOODS AND SERVICES TAX
BILL, 2017
A
BILL
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:-
CHAPTER I
PRELIMINARY
5
1. (1) This Act may be called the Integrated Goods and Services Tax Act, 2017.
(2) It shall extend to the whole of India except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act
10 and any reference in any such provision to the commencement of this Act shall be construed
as a reference to t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ater point of time;
(4) “customs frontiers of India” means the limits of a customs area as defined
in section 2 of the Customs Act, 1962;
(5) “export of goods” with its grammatical variations and cognate expressions,
means taking goods out of India to a place outside India;
(6) “export of services” means the supply of any service when,€•
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of
service in convertible foreign exchange; and
5
10
20
(v) the supplier of service and the recipient of service are not merely
establishments of a distinct person in accordance with Explanation 1 in 25
section 8;
(7) “fixed establishment” means a place (other than the registered place of
business) which is characterised by a sufficient degree of permanence and suitable
structure in ter
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ut does not include a person who supplies
such goods or services or both or securities on his own account;
45
5
10
15
20
25
30
35
10
40
45
45
3
(14) “location of the recipient of services” means,—
(a) where a supply is received at a place of business for which the
registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business
for which registration has been obtained (a fixed establishment elsewhere), the
location of such fixed establishment;
(c) where a supply is received at more than one establishment, whether
the place of business or fixed establishment, the location of the establishment
most directly concerned with the receipt of the supply; and
(d) in absence of such places, the location of the usual place of residence
of the recipient;
(15) “location of the supplier of services” means,-
(a) where a supply is made from a place of business for which the
registration
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
thority” 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 equity or control, to carry out any
function entrusted to a municipality under article 243W of the Constitution;
(17) “online information and database access or retrieval services” means
services whose delivery is mediated by information technology over the internet or
an electronic network and the nature of which renders their supply essentially
automated and involving minimal human intervention and impossible to ensure in
the absence of information technology and includes electronic services such as,ۥ
(i) advertising on the internet;
(ii) providing cloud services;
(iii) provision of e-books, movie, music, software and other intangibles
through telecommunication networks or internet;
(iv) providing data or information, retrievable or otherwise, to an
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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 Act but defined in the 15
Central Goods and Services Tax Act, the Union Territory Goods and Services Tax
Act and the Goods and Services Tax (Compensation to States) Act shall have the
same meaning as assigned to them in those Acts;
(25) any reference in this Act to a law which is not in force in the State of
Jammu and Kashmir, shall, in relation to that State be construed as a reference to the 20
corresponding law, if any, in force in that State.
28 of 2005.
28 of 2005.
CHAPTER II
ADMINISTRATION
Appointment of
officers.
Authorisation
of officers of
State tax or
Union territory
tax as proper
officer in
certain
circumstances.
3. The Board may appoint such central tax officers as it thinks fit for exercising the
powers under this Act.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
son:
Provided that the integrated tax on goods imported into India shall be levied and 40
collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on
the value as determined under the said Act at the point when duties of customs are levied on
the said goods under section 12 of the Customs Act, 1962.
(2) The integrated tax on the supply of petroleum crude, high speed diesel, motor
spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied 45
with effect from such date as may be notified by the Government on the recommendations
of the Council.
51 of 1975.
52 of 1962.
5
5
(3) The Government may, on the recommendations of the Council, by notification,
specify categories of supply of goods or services or both, the tax on which shall 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 pa
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
taxable territory, any person representing such electronic commerce operator
for any purpose in the taxable territory shall be liable to pay tax:
Provided further that where an electronic commerce operator does not have a physical
20 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.
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,
25 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
been
40 granted absolutely, the registered person supplying such goods or services or both shall not
collect the tax, in excess of the effective rate, on such supply of goods or services or both.
CHAPTER IV
DETERMINATION OF NATURE OF SUPPLY
7. (1) Subject to the provisions of section 10, supply of goods, where the location of
45 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.
Power to grant
exemption
from tax.
Inter-State
supply.
Intra-State
supply.
(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 services, where the location of
the supplier and the place of supply are inۥ
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ntra-State supply:
Provided that the following supply of goods shall not be treated as intra-State supply,
namely:ۥ
(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, supply of services where the location of
the supplier and the place of supply of services are in the same State or same Union territory
shall be treated as intra-State supply:
Provided that the intra-State supply of services shall not include supply of services to
or by a Special Economic Zone developer or a Special Economic Zone unit.
Explanation 1.—For the purposes of this Act, where a person has,—
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other estab
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
than supply of goods imported into, or
10 exported from India, shall be as under,ۥ
15
20
20
25
(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 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;
(c) 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 d
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ion of supplier of services and the location of the recipient of supply of
services is in India.
services
40
where
(2) The place of supply of services, except the services specified in sub-sections (3)
to (14),—
location of
supplier and
(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,—
recipient is in
India.
45
(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,ۥ
(a) directly in relation to an immovable property, including services provided
by architects, interior decorators, surveyors, engineers and other related experts or
8
estate agents, any service provided by way of grant of rights to use immovable property
or for carrying out or co-ordination of construction work; or
(b) by way of lodging accommodation by a hotel, inn, guest house, h
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ies, 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, 20
beauty treatment, health service including cosmetic and plastic surgery shall be the location
where the services are actually performed.
to,ۥ
(5) The place of supply of services in relation to training and performance appraisal
(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.
25
(6) The place of supply of services provided by way of admission to a cultural, artistic,
sporting, scientific, educational, entertainment event or amusement park or any other place
and services ancillary thereto, shall be the place where the e
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n as being in each of the respective
States or Union territories in proportion to the value for services separately collected 45
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.
5
10
15
20
25
30
35
40
45
9
(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.
(9) The place of supply of passenger transportation service to,ۥ
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the place where the passenger
embarks on the conveyance for a continuous journey:
Provided that where the right to passage is given for future use and the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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,ۥ
(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 pre-
payment is received or such vouchers are sold;
(d) in other cases, be the address of the recipient as per the records of the
supplier of services and where such address is not available, the place of suppl
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
terms of the contract or agreement entered into in this regard or, in the absence of such 5
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 10
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.
15
(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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e the location of the supplier of 30
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 services to the supplier of services, or to a 35
person acting on behalf of the supplier of services in order to provide the services:
Provided that when such services are provided from a remote location by way
of electronic means, the place of supply shall be the location where goods are situated
at the time of supply of services:
Provided further that nothing contained in this clause shall apply in the case 40
of services supplied in respect of goods which are temporarily imported into India
for repairs and are exported after repairs without being put to any other use in India,
than that which is required for such repairs;
(b) services supplied to an individual, represented either as
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ancillary to such admission or
10 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 in the taxable
territory, its place of supply shall be the location in the taxable territory.
(7) Where the services referred to in sub-section (3) or sub-section (4) or
15 sub-section (5) are supplied in more than one State or Union territory, the place of supply
of such services shall be taken as being in each of the respective States or Union territories
and the value of such supplies specific to each State or Union territory shall be 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
20 such other basis as may be prescribed.
55
25
30
40
45
(8) The place of supply of the follo
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
) 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 the previous approval of the
Central Government and by notification in the Official Gazette, specify.
(9) The place of supply of services of transportation of goods, other than by way of
mail or courier, shall be the place of destination of such goods.
(10) The place of supply in respect of passenger transportation services shall be the
place where the passenger embarks on the conveyance for a continuous journey.
2 of 1934.
35
12
Special
provision for
payment of tax
by a supplier of
online
information and
database access
or retrieval
services.
(11) The place of supply of services provided on board a conveyance during the
course of a passenger transport operat
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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;
15
(f) the country code of the subscriber identity module card used by the recipient 20
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 supply of a service, or
for the uniform application of rules, the Government shall have the power to notify any 25
description of services or circumstances in which the place of supply shall be the place of
effective use and enjoyment of a service.
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 sh
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he intermediary neither collects or
processes 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.
45
13
5
(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 and pay integrated tax on behalf
of the supplier:
Provided further that if such supplier does not have a physical presence or does not
have a representative for any purpose in the ta
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ne 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 Tax Act, credit of input tax may be availed for making zero-rated supplies,
notwithstanding that such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible to claim refund
30 under either of the following options, namely:ۥ
35
40
45
(a) he may supply goods or services or both under bond or Letter of Undertaking,
subject to such conditions, safeguards and procedure as may be prescribed, without
payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both, subject to such conditions,
safeguards and procedure as may be prescribed, on payment of integrated tax and
claim refund of such tax paid on goods or services or both supplied,
in accordance with the provisions of section 54 of the Central Goods and Services Tax Act
or
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
a registered person paying tax under section 10 of the Central Goods and Services
Tax Act;
(e) in respect of import of goods or services or both where the registered person
is not eligible for input tax credit;
(f) in respect of import of goods or services or both made in a financial year by 10
a registered person, where he does not avail of the said credit within the specified
period and thus remains in the integrated tax account after expiry of the 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,ۥ
(a) State where such supply takes place; and
15
(b) Central
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
pportionment of interest, penalty and compounding
amount realised in connection with the tax so apportioned.
35
(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 so apportioned and
the Central Government shall transfer to the central tax account or Union territory tax
account, an amount equal to the respective amounts apportioned to the Central Government 40
and shall transfer to the State tax account of the respective States an amount equal to the
amount apportioned to that State, in such manner and within such time as may be prescribed.
(5) Any integrated tax apportioned to a State or, as the case may be, to the Central
Government on account of a Union territory, if subsequently found to be refundable to any
person and refunded to such person, shall be reduced from the amount to be a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
l to the amount so reduced from the
integrated tax account to the Union territory tax account in such manner and within
such time as may be prescribed;
(c) State tax in accordance with the provisions of the respective State Goods
and Services Tax Act, the amount collected as integrated tax shall stand reduced by
an amount equal to the credit so utilised and shall be apportioned to the appropriate
State Government and the Central Government shall transfer the amount so
apportioned to the account of the appropriate State Government in such manner and
within such time as may be prescribed.
Explanation. For the purposes of this Chapter, “appropriate State” in relation
to a taxable person, means the State or Union territory where he is registered or is
liable to be registered under the provisions of the Central Goods and Services Tax
Act.
19. (1) A registered person who has paid integrated tax on a supply considered by
25 him to be an inter-State supply, but which
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
egistration;
(vi) tax invoice, credit and debit notes;
(vii) accounts and records;
(viii) returns, other than late fee;
(ix) payment of tax;
45
(x) tax deduction at source;
(xi) collection of tax at source;
(xii) assessment;
(xiii) refunds;
(xiv) audit;
16
(xv) inspection, search, seizure and arrest;
(xvi) demands and recovery;
(xvii) liability to pay in certain cases;
(xviii) advance ruling;
(xix) appeals and revision;
(xx) presumption as to documents;
(xxi) offences and penalties;
(xxii) job work;
5
10
Import of
services made
on or after the
appointed day.
Power to make
rules.
(xxiii) electronic commerce;
(xxiv) transitional provisions; and
(xxv) miscellaneous provisions including the provisions relating to the 15
imposition of interest and penalty,
shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they
apply in relation to central tax as if they are enacted under this Act:
Provided that in the case of tax deducted at
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d 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 35
existing law, no tax shall be payable on such import under this Act:
Provided further that if the tax on such import of services had been paid in part under
the existing law, the balance amount of tax shall be payable on such import under this Act.
Explanation. For the purposes of this section, a transaction shall be deemed to
have been initiated before the appointed day if either the invoice relating to such supply or 40
payment, either in full or in part, has been received or made before the appointed day.
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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r a
total period of thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the rule or
regulation or in the notification, as the case may be, or both Houses agree that the rule or
15 regulation or the notification should not be made, the rule or regulation or notification, as
the case may be, shall thereafter have effect only in such modified form or be of no effect,
as the case may be; so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule or regulation or
notification, as the case may be.
20
25
25. (1) If any difficulty arises in giving effect to any provision of this Act, the
Government may, on the recommendations of the Council, by a general or a special order
published in the Official Gazette
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ollected and retained by
the exporting States.
2. The crucial aspect of central sales tax is that it is non-vatable, i.e. the credit of
this tax is not available as set-off for the future tax liability to be discharged by the
purchaser. It directly gets added to the cost of the goods purchased and becomes part
of the cost of business and thereby has a direct impact on the increase in the cost of
production of a particular product. Further, the fact that the rate of central sales tax is
different from the value added tax being levied on the intra-State sale creates a tax
arbitrage which is exploited by unscrupulous elements.
3. In view of the above, it has become necessary to have a Central legislation,
namely, the Integrated Goods and Services Tax Bill, 2017. The proposed Legislation
will confer power upon the Central Government for levying goods and services tax on
the supply of goods or services or both which takes place in the course of inter-State
trade or commerce. Th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ied, not
exceeding forty per cent. as recommended by the Goods and Services Tax Council
(the Council);
(b) to provide for levy of tax on goods imported into India in accordance
with the provisions of the Customs Tariff Act, 1975 read with the provisions
contained in the Customs Act, 1962;
(c) to provide for levy of tax on import of services on reverse charge basis
under the proposed Legislation;
(d) to empower the Central Government to grant exemptions, by notification
or by special order, on the recommendations of the Council;
(e) to provide for determination of the nature of supply as to whether it is
an inter-State or an intra-State supply;
(f) to provide elaborate provisions for determining the place of supply in
relation to goods or services or both;
18
19
(g) to provide for payment of tax by a supplier of online information and
database access or retrieval services;
(h) to provide for refund of tax paid on supply of goods to tourist leaving
India;
(i) to provi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t title, extent and commencement of the proposed Act.
Clause 2 defines various terms and expressions used in the proposed Act.
Clause 3 provides for appointment of Commissioners and other class of officers
as may be required for carrying out the purposes of the proposed Act.
Clause 4 provides for authorisation of State tax and Union territory tax officers,
subject to certain exceptions and conditions as shall be notified by the Central
Government on recommendations of the Council, to be proper officers for the purposes
of the proposed Act.
Clause 5 provides for levy and collection of integrated tax on all inter-State
supplies of goods or services or both except on the supply of alcoholic liquor for
human consumption, on the value determined under section 15 of the Central Goods
and Services Tax Act at a rate not exceeding forty per cent. It further provides that
integrated tax on goods imported into India shall be levied and collected under
section 3 of the Customs Tariff
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
vices, the tax on
inter-State supplies of which shall be paid by the electronic commerce operator
if such services are supplied through it, on the recommendations of the Council.
Clause 6 confers powers on Central Government to exempt either absolutely or
conditionally goods or services or both of any specified description from the whole or
part of the integrated tax, on the recommendations of the Council. This clause also
confers powers on the Central Government to exempt from payment of tax any goods
or services or both, by special order, on which tax is leviable on the recommendations
of the Council.
Clause 7 provides for instances where a supply of goods or services or both will
be considered as inter- State supply.
Clause 8 provides for instances where a supply of goods or services or both will
be considered as intra- State supply.
Clause 9 provides for supplies made in territorial waters to be deemed to be
made in the States or Union territories where the nearest po
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ro rating of certain supplies namely exports and supplies
made to Special Economic Zone Unit or Special Economic Zone developer and the
manner of zero rating.
Clause 17 provides for apportionment of integrated tax and settlement of funds
between the Central and State Government.
Clause 18 provides for utilisation of credit of integrated tax availed under the
proposed Act for payment of central tax, Union territory tax or State tax.
Clause 19 provides for refund of integrated tax in situations where inter-State
supplies are subsequently held to be intra-State supplies.
Clause 20 provides for application of specific provisions of the Central Goods
and Services Tax Act to the proposed Act.
Clause 21 provides that all import of services made on or after the appointed day
will be liable to integrated tax regardless of whether the transactions for such import of
services had been initiated before the appointed day.
Clause 22 confers powers on the Central Government to make rule
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
to appeals, advance ruling and anti-profiteering. So
authorities under the Central Goods and Services Tax Act will be utilised for the purposes of
the proposed legislation. Thus there will be no extra financial expenditure under this
Bill.
3. The total financial implications in terms of recurring and non-recurring expenditure
involved in carrying out the various functions under the Bill would be borne by the Central
Government. Most of the existing officers and staff of the Central Board of Excise and
Customs would be used for carrying out the various functions under the Bill. However, it is
not possible to estimate the exact recurring and non-recurring expenditure from the
Consolidated Fund of India at this stage.
22
22
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 22 of the Integrated Goods and Services Tax Bill seeks to empower the
Central Government to make rules, inter alia, in the following matters, namely:—
(a) collection of taxes under section 5; (b)
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
(i) manner in which tax wrongfully collected and paid to Central Government
or State Government is to be refunded under section 19; and (j) any other matter
which is to be, or may be, prescribed, or in respect of which provision is to be
made, by rules.
2. Clause 23 of the Bill empowers the Board to make regulations to provide for
any matter which is required to be, or may be, specified by regulation or in respect of
which provision is to be made by regulations.
3. The matters in respect of which the said rules and regulations may be made
are matters of procedure and administrative detail, and as such, it is not practicable to
provide for them in the proposed Bill itself. The delegation of legislative power is,
therefore, of a normal character.
23
LOK SABHA
A
BILL
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.
(Shri Arun Jaitley,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =