Goods and Services Tax – GST – By: – Monarch Bhatt – Dated:- 29-3-2017 – Levy & collection of CGST – The clause has been added in the levy section which is making room for the government to impose CGST on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel at a later stage based on the recommendation of the council. Of course, procedure needs to be followed for amendment in constitution as well before introducing it under GST regime. Composition Levy – The changes has been for the rates provided under the composition scheme. The revised rates are as follows: Manufacturers are liable for the payment of CGST @ 1%, opting for the composition scheme. The person providing services alongwith supply of goods being food or any other article for human consumption or any drink excluding alcoholic liquor for human consumption are liable for the payment of CGST @ 2.5% under composition scheme. This will be beneficial for the small restaurants and banquet se
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ssociation or body of persons to their member. Hence, services provided by clubs and society to their members will not be liable for the payment of CGST and it will cut down long pending battle under service tax from continuing under CGST regime. Schedule III – The amendment has been made in Schedule III which provides for the activities neither to be treated as service nor to be treated as goods. Clause 6 has been added which states that actionable claim other than lottery, betting and gambling neither to be treated as supply of Goods nor as Supply of Services. It is to be noted that definition of goods includes actionable claim and therefore without this entry actionable claim over meal voucher and shopping voucher itself was getting covered under GST regime as per model GST law. Illustration: If Sodexo issuing voucher of 5000/- and charging 500/- as processing fee or transaction fees, CGST was payable on both i.e. 5000/- received towards voucher value and on 500/- received towards p
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es alongwith tax has been paid by the supplier to the provider of service within a period of 3 months. If payment has not been made by the receiver of service to the supplier of service, it will get added to the liability of receiver of such input service receiver, which will be recovered alongwith interest. This provision has been changed completely, while introducing CGST bill. As per the CGST bill, provision is applicable on the credit availed by the receiver on supply of services as well as on supply of goods or both other than credit availed of tax paid on reverse charge basis and time period has been increased from 3 months to 180 days. Therefore, if credit has been availed on services, or goods or of both (other than reverse charge credit) payment for the value as well as for the taxes must be made within a period of 180 days, otherwise it will get added to the liability of the receiver which will be recovered with interest. Further, another proviso has been also added wherein,
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