DRAFT – THE INTEGRATED GOODS AND SERVICE TAX ACT, 2016 – PART II

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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