Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 30-6-2016 Last Replied Date:- 1-7-2016 – With regional general elections to state assembly in some states getting concluded, policy makers on GST front got active and we saw a fully charged meeting or Empowered Committee under the Chairmanship of Mr. Amit Mitra, Finance Minister of West Bengal on 14-15 June, 2016. This meeting which took place after a gap of over 5 months could see the release of model law on goods and services tax, a major development in moving forward on GST front. This also indicates near consensus on various issues concerning GST. There may be some disagreements on certain issues by some State Governments but the release of model GST law in public domain is certainly a welcome step and would take the efforts forward. Now the eyes would be on monsoon session of Parliament in August, 2016 wherein Constitutional Amendment Bill is hopefully likely to be considered for passage. If that could happen, we m
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central levy) and SGST (state levy). On inter-state supply of goods, IGST shall be applicable. GST would be applicable on 'supply' of goods and services. The salient feature of model GST law are enumerated hereunder: 1) Threshold limit for registration The dealer is required to take registration under this law if his aggregate turnover in a financial year exceeds ₹ 9 lakhs. However, dealers conducting business in any North Eastern State are required to take registration if their turnover exceeds ₹ 4 lakhs. 2) Place of registration The dealer has to take registration in the State from where taxable goods or services are supplied. 3) Migration of existing taxpayers to GST Every person already registered under extant law will be issued a certificate of registration on a provisional basis. This certificate shall be valid for period of 6 months. Such person will have to furnish the requisite information within 6 months and on furnishing of such information, final registr
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includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration. It also includes importation of service, whether or not for a consideration. 7) Point of taxation CGST/SGST shall be payable at the earliest of the following dates, namely: (i) Date on which the goods are removed for supply to the recipient (in case of movable goods). (ii) Date on which the goods are made available to the recipient (in case of immovable goods). 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. 8) TCS on online sales of goods or service Every E-commerce operator engaged in facilitating the supply of any goods and/or services (like Amazon, Flipkart, etc.) shall collect tax at source at the time of credit or at the time of payment whichever is earlier. 9) Valuation Rules Valuation Rule
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lized towards the payment of IGST. The input tax credit on account of CGST shall not be available for payment of SGST. 11) Payment Any tax, interest, penalty, fee, etc., shall be paid via internet banking or by using credit/debit cards or NEFT or RTGS. This amount shall be credited to the electronic cash ledger of dealer. 12) TDS The Central or a State Government may mandate certain departments (viz, local authority, Govt. agencies) to deduct tax at the rate of one percent on notified goods or services, where the total value of such supply, under a contract, exceeds ₹ 10 lakhs. 13) Refund A person can claim refund of any tax and interest by making an application in that regard to the prescribed officer of IGST/CGST/SGST within two years. 14) Returns Dealers shall be required to furnish following returns- a) Monthly return b) Return for composition scheme c) TDS return d) Return for input service distributor e) First return f) Annual return g) Final return These returns are for di
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