Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 6-9-2016 Last Replied Date:- 6-9-2016 – Goods and Services Tax (GST) is going to be a reality in near future – could be by April, 2017 or few months later. GST is a new tax in India which shall be levied and collected as an indirect tax on supply of goods and services. 'Goods' and 'Services' are defined in section 2(48) and 2(86) of the model law as well as in the Constitution. What is GST is also defined in article 366 (12A) of the Constitution which is being amended. Accordingly, 'goods and service tax' means any tax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption. Section 2(94) of the model law defines 'tax'. Accordingly, 'tax' means goods and services tax levied on the supply of goods and/or services under this Act and includes any amount payable under Section 8. As per the above definitions read in consonance, GS
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than one percent of the turnover during the year: Provided that no such permission shall be granted to a taxable person who effects any inter-State supplies of goods and/or services. Provided further that no such permission shall be granted to a taxable person unless all the registered taxable persons, having the same PAN as held by the said taxable person, also opt to pay tax under the provisions of this sub-section. 2) A taxable person to whom the provisions of sub-section (1) apply shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax. 3) If the proper officer has reasons to believe that a taxable person was not eligible to pay tax under sub-section (1), such person shall, in addition to any tax that may be payable by him under other provisions of this Act, be liable to a penalty equivalent to the amount of tax payable as aforesaid: Provided that no penalty shall be imposed without giving a notice to show cause and
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rnover during the year, i.e., it could be one percent or more but certainly lower than the GST rate. Composition scheme shall not be available to taxable person who supply goods or services to other states, i.e., it will not be applicable to inter-state supplies where IGST is payable. Composition scheme can be availed by those taxable persons only where all the registered taxable persons, having the same PAN as held by the said taxable person, also opt to pay tax under the provisions. Where composition scheme is opted for, taxable person will not be allowed or shall not collect any tax from the recipient of supplies. Taxable persons under composition scheme shall also not be entitled to any input tax credit. Where composition scheme is wrongly availed, proper officer may require such person to pay for taxes payable under the Act and an equal amount of penalty shall also be payable. Such penalty shall be levied only after affording a reasonable opportunity of being heard to the taxable
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