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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