Goods and Services Tax

Clarification regarding Annual Returns and Reconciliation Statement
GST
Dated:- 3-7-2019

The Government of India has been receiving a number of representations regarding Annual Return (FORM GSTR-9 / FORM GSTR-9A) and Reconciliation Statement (FORM GSTR-9C). In this regard the following clarifications are issued for information of all stakeholders: –
a) Payment of any unpaid tax: Section 73 of the CGST Act provides a unique opportunity of self – correction to all taxpayers i.e. if a taxpayer has not paid, short paid or has erroneously obtained/been granted refund or has wrongly availed or utilized input tax credit then before the service of a notice by any tax authority, the taxpayer may pay the amount of tax with interest. In such cases, no penalty shall be leviable on such tax payer. Therefore, in cases where some information has not been furnished in the statement of outward supplies in FORM GSTR-1 or in the regular returns in FORM GSTR-3B, such taxpayers may pay the

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ere can be broadly two scenarios, either tax was not paid to the Government or tax was paid in excess. In the first case, the same shall be declared in the annual return and tax should be paid and in the latter all information may be declared in the annual return and refund (if eligible) may be applied through FORM GST RFD-01A. Further, no input tax credit can be reversed or availed through the annual return. If taxpayers find themselves liable for reversing any input tax credit, they may do the same through FORM GST DRC-03 separately.
c) Premise of Table 8D of Annual Return: There appears to be some confusion regarding declaration of input tax credit in Table 8 of the annual return. The input tax credit which is declared / computed in Table 8D is basically credit that was available to a taxpayer in his FORM GSTR-2A but was not availed by him between July 2017 to March 2019. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing

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se of Table 8J of Annual Return: In the press release on annual return issued earlier on 4th June 2019, it has already been clarified that all credit of IGST paid at the time of imports between July 2017 to March 2019 may be declared in Table 6E. If the same is done properly by a taxpayer, then Table 8I and 8J shall contain information on credit which was available to the taxpayer and the taxpayer chose not to avail the same. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is information that the Government needs for settlement purposes.
e) Difficulty in reporting of information not reported in regular returns: There have been a number of representations regarding non-availability of information in Table 16A or 18 of Annual return in FOR

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nformation reported across these tables, such overlap will not be viewed adversely. The other concern raised by taxpayers is the inclusion of no supply in the category of Non-GST supplies in Table 5F. For the purposes of reporting, non-GST supplies includes supply of alcoholic liquor for human consumption, motor spirit (commonly known as petrol), high speed diesel, aviation turbine fuel, petroleum crude and natural gas and transactions specified in Schedule III of the CGST Act.
g) Reverse charge in respect of Financial Year 2017-18 paid during Financial Year 2018-19: Many taxpayers have requested for clarification on the appropriate column or table in which tax which was to be paid on reverse charge basis for the FY 2017-18 but was paid during FY 2018-19. It may be noted that since the payment was made during FY 2018-19, the input tax credit on such payment of tax would have been availed in FY 2018-19 only. Therefore, such details will not be declared in the annual return for the FY

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re, if there are two registrations in two different States on the same PAN, say State A (with turnover of ₹ 1.2 Crore) and State B (with turnover of ₹ 1 Crore) they are both required to file reconciliation statements individually for their registrations since their aggregate turnover is greater than ₹ 2 Crore. The aggregate turnover for this purpose shall be reckoned for the period July, 2017 to March, 2018.
j) Treatment of Credit Notes / Debit Notes issued during FY 2018-19 for FY 2017-18: It may be noted that no credit note which has a tax implication can be issued after the month of September 2018 for any supply pertaining to FY 2017-18; a financial/commercial credit note can, however, be issued. If the credit or debit note for any supply was issued and declared in returns of FY 2018-19 and the provision for the same has been made in the books of accounts for FY 2017-18, the same shall be declared in Pt. V of the annual return. Many taxpayers have also represente

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Anti Profiteering Mechanism under GST
GST
Dated:- 3-7-2019

In terms of section 171 of the Central Goods and Services Tax Act, 2017, any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has to be passed on to the recipient by way of commensurate reduction in prices. Further, the National Anti-profiteering Authority (NAA) has been constituted by the Government to examine the complaints of profiteering against registered persons under

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GOODS AND SERVICE TAX CONCEPT & STATUS (AS ON 01st July, 2019)
GST
Dated:- 3-7-2019

GOODS AND SERVICE TAX (GST)
CONCEPT & STATUS
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC)
DEPARTMENT OF REVENUE
MINISTRY OF FINANCE
GOVERNMENT OF INDIA
AS ON 01st July, 2019
The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great country being ne

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a an economic union. 
2.   CONSTITUTIONAL SCHEME OF INDIRECT TAXATION IN INDIA BEFORE GST :
2.1   Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate. 
2.2   Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted i

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List) and electricity tax ((entry 53 of the State List). CST was also an important source of revenue though the same was levied by the Union.
3.   HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POSTINDEPENDENCE INDIA TILL GST:
3.1   In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue. 
3.2   The power to levy tax on sale and purchase o

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and manufactured goods only with one-to-one correlation between input and manufactured goods for eligibility to take input tax credit. The comprehensive coverage of MODVAT was achieved by 1996-97. 
3.4   The next wave of reform in indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Centra

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e of this century, sales tax was levied in States since independence. Sales tax was plagued by some serious flaws. It was levied by States in an uncoordinated manner the consequences of which were different rates of sales tax on different commodities in different States. Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling. 
3.7   A report, titled “Reform of Domestic Trade Taxes in India”, on reforming indirect taxes, especially State sales tax, by National Institute

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ened by the Union Finance Minister in 1995. A standing Committee of State Finance Ministers was constituted, as a result of meeting of the Union Finance Ministers and Chief Ministers in November, 1999, to deliberate on the design of VAT which was later made the Empowered Committee of State Finance Ministers (EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008.
4.   INTERNATIONAL PERSPECTIVES ON GST / VAT:
4.1   VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies fro

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ada) or with some co-ordination between the national and sub-national entities (Brazil, Russia). While a centralized structure reduces fiscal autonomy for the States, a decentralized structure enhances compliance burden for the taxpayers. Canada is a federal country with unique model of taxation in which certain provinces have joined federal GST and others have not. Provinces which administer their taxes separately are called 'non- participating provinces', whereas provinces which have teamed up with the Federal Government for tax administration are called 'participating provinces'. 
4.3   The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it),  Hungary has one of the highest rate of 27%. Australia levies GST at the rate of  10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%. 
5.   NEED FOR GST IN INDI

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there are several taxes in the States, such as, Luxury Tax, Entertainment Tax, etc. which have still not been subsumed in the VAT. Further, there has also not been any integration of VAT on goods with tax on services at the State level with removal of cascading effect of service tax.  
5.3   CST was another source of distortion in terms of its cascading nature. It was also against one of the basic principles of consumption taxes that tax should accrue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST. 
5.4   In the constitutional scheme, taxation powers on goods was with Central Government but it was limited up to the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers

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ISTORICAL PERSPECTIVE:
6.1   The Kelkar Task Force on Fiscal Responsibility and Budget Management (FRBM) recommended in 2005 introduction of a comprehensive tax on all goods and service replacing Central level VAT and State level VATs. It recommended replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all stages of making of a product. 
6.2   In the year 2000, the then Prime Minister introduced the concept of GST and set up a committee to design a GST model for the country. In 2003, the Central Government formed a taskforce on Fiscal Responsibility and Budget Management, which in 2004 recommended GST to replace the existing tax regime by introducing a comprehensive tax on all goods and services replacing Central level VAT and State level VATs. It recommended replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all

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ed into the report of Joint Working Group (November 19, 2007).
6.3   This report was discussed in detail in the meeting of the EC on November 28, 2007, and the States were also requested to communicate their observations on the report in writing. On the basis of these discussions in the EC and the written observations, certain modifications were considered necessary and were discussed with the Co-conveners and the representatives of the Department of Revenue of Union Finance Ministry. With the modifications duly made, a final version of the views of EC on the model and road map for the GST was prepared (April 30, 2008). These views of EC were then sent to the Government of India, and the comments of Government of India were received on December 12, 2008. These comments were duly considered by the EC (December 16, 2008), and it was decided that a Committee of Principal Secretaries/Secretaries of Finance/Taxation and Commissioners of Trade Taxes of the States would be set up

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estination based consumption tax. Under destination based taxation, tax accrues to the destination place where consumption of the goods or services takes place. The existing VAT regime was based on origin principle where Central Sales Tax was assigned to the State of origin where production or sale happened and not to the State where consumption happened. Many manufacturing States expressed concerns over the loss of revenue on account of shift from origin based taxation to destination based taxation. 
7.2.1   An argument put forward on behalf of producing states in support of origin based taxation is that they need to collect at least some tax from inter-State sales in order to recover the cost of infrastructure and public services provided by the State Governments to the industries producing the goods which are consumed in other states. This line of reasoning is based on the assumption that in the absence of a tax on inter-State sales, the location of export industrie

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vices and how much they will lose on account of removal of cascading effect and phasing out of CST. In view of this, States asked for compensation during the first five years of implementation of GST.
7.3.1   A Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under GST suggested RNR (Revenue Neutral  Rate). The term RNR refers to that single rate, which preserves revenue at desired (current) levels. This would differ from the standard rate, which is the rate that would apply to a majority of goods and services. In practice, there will be a structure of rates, but for the sake of analytical clarity and precision it is appropriate to think of the RNR as a single rate. It is a given single rate that gets converted into a whole rate structure, depending on policy choices about exemptions, what commodities to charge at a lower rate and what to charge at a very high rate. 
7.3.2   The Committee recommended RNR of 15

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as to be constituted for this purpose. This body was judicial in nature. The proposed constitution of this Authority was challenged because its powers would override the supremacy of the Parliament and the State Legislatures. The Constitution (One Hundred Twenty Second Amendment) Bill, 2014 departed from the previous GST amendment bill and proposed that the Goods and Services Tax Council may decide about the modalities to resolve disputes arising out of its recommendations. 
7.5   Alcohol and Petroleum products: Alcoholic liquor for human consumption and petroleum products are major contributor to revenue of States. As States were uncertain about impact of GST on their finances and moreover loss of autonomy in collection of tax revenue, States unanimously argued for exclusion of these products from the ambit of GST. In the 115th Amendment Bill alcoholic liquor for human consumption and five petroleum products namely crude petroleum, high speed diesel, motor spirit or p

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The Union can tax services using residuary powers but States could not. Under a unified Goods and Services Tax scheme, both should have power to tax the complete supply chain from production to distribution, and both goods and services. The scheme of the Constitution did not provide for any concurrent taxing powers to the Union as well as the States and for the purpose of introducing goods and services tax amendment of the Constitution conferring simultaneous power on Parliament as well as the State Legislatures to make laws for levying goods and services tax on every transaction of supply of goods or services was necessary. 
8.2   The Constitution (115th Amendment) Bill, 2011, in relation to the introduction of GST, was introduced in the Lok Sabha on 11.03.2011. The Bill was referred to the Standing Committee on Finance on 29.03.2011. The Standing Committee submitted its report on the Bill in August, 2013. However, the Bill, which was pending in the Lok Sabha, lapsed

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t Parliament has exclusive power to make laws with respect to GST on interState supplies.
b)   Article 268A of the Constitution has been omitted. The said article empowered the Government of India to levy taxes on services. As tax on services has been brought under GST, such a provision was no longer required.
c)   Article 269A has been inserted which provides for goods and services tax on supplies in the course of inter-State trade or commerce which shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council. It also provides that Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.
d)   Article 270 has been amended to provide f

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st I and List II have been either substituted or omitted to restrict power to tax goods or services specified in these Lists or to take away powers to tax goods and services which have been subsumed in GST.
j)   Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for five years. 
k)   In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council.
9.   GOODS & SERVICE TAX COUNCIL:
9.1   As provided for in Article 279A of the Constitution, the Goods and Services
Tax Council (the Council) was notified with effect from 12.09.2016. The Council is comprised of the Union Finance Minister (who will be the Chairman of the

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h)   any other matter relating to the GST, as the Council may decide.
9.2   The Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services. 
9.3   One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. The Goods and Services Tax Council shall determine the procedure in the performance of its functions. Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordanc

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t all decisions were taken unanimously. 
The following major recommendations have been made by the Council:
9.4.1   Legal/Rules:
9.4.1.1   Recommending GST laws, namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law paving the way for implementation of GST.
9.4.1.2   Rules on composition, registration, input tax credit, invoice, determination of value of supply, accounts and records, returns, payment, refund, assessment and audit, advance ruling, appeals and revision,    transitional    provisions,    anti-profiteering,    E-way    Bill, inspection, search and seizure, demands and recovery and offences and penalties have been recommended.
9.4.2   Registration and Threshold:
9.4.2.1   Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be Rs. 20 lakhs and Rs. 10

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ly those e-commerce operators who are required to collect tax at source.
9.4.2.6   Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
9.4.2.7   A Removal of Difficulty order has been issued to allow revocation of cancellation of those registrations, which were cancelled till 31.03.2019. The application for revocation can be filed till 22.07.2019.  
9.4.3   Migration: 
9.4.3.1   One more window for completion of migration process is being allowed. The due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer was extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019 / quarters July, 2

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rs under Composition scheme have been allowed to pay 'selfassessed tax' on a quarterly basis till 18th of the month succeeding such quarter and furnish a return till 30th April for the previous financial year.
9.4.4.4   A taxpayer who wants to opt for Composition Scheme for a financial year or during the middle of a financial year has to inform the government about his choice by filing FORM GST CMP-02.
9.4.4.5   The GST Council in its 35th meeting held on 21.06.2019 decided that the last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, be extended from 30.04.2019 to 31.07.2019.
9.4.4.6   Composition scheme shall not be available to inter-State suppliers and specified category of manufacturers. 
9.4.5   E-way bill system
9.4.5.1   The generation of e-way bill would be barred if a supplier or recipient does not fil

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mpensation to States:
9.4.7.1   Formula and mechanism for GST Compensation Cess has been finalized.
9.4.8   Reverse Charge Mechanism (RCM):
9.4.8.1   Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council. In this regard, notification No. 07/2019- Central Tax (Rate) dated 29.03.2019 has been issued which prescribes that the promoter shall pay tax on reverse charge basis w.e.f. 01.04.2019 on following supplies received from unregistered suppliers –  
a.   such supplies which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of a project as prescribed in notification No. 11/2017-Central Tax (Rate) dated 28.06.2017;
b.   cement which constitute the shortfall fr

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pay card. The necessary infrastructure is being developed and soon the scheme would be implemented on pilot basis in State of Assam and few other States which volunteer for the same.
9.4.9.3   In principle approval has been given for amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger. This would be implemented once the law is amended.
9.4.10   Exemption:
9.4.10.1   Supply from GTA to unregistered persons has been exempted from tax.
9.4.11   Refunds:
9.4.11.1   A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented soon. The modalities for the same are being finalized.
9.4.11.2   All the supporti

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sp;  Late Fees: 
9.4.13.1   Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months / quarters July, 2017 to September, 2018 which are furnished after 22.12.2018 but on or before 31.03.2019.
9.4.13.2   From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows: 
a.   whose tax liability for that month was 'NIL' will be Rs. 20/- per day instead of Rs. 200/- per day; 
b.   whose tax liability for that month was not 'NIL' will be Rs. 50/- per day instead of Rs. 200/- per day.
9.4.14   New Return System:
9.4.14.1   The new return system is simple with two main annexures. One for reporting details of outward supplies (FORM GST ANX-1) and the other for availing input tax credit (FORM GST ANX-2) based on invoices, etc. uploaded by the supplier.
9.4.14.2   Invoices ca

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raders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns, details of information required to be filled is lesser than that in the regular return. 
9.4.14.6   The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.
9.4.14.7   In order to give ample opportunity to taxpayers as well as the system to adapt, the GST Council in its 35th meeting held on 21.06.2019 has decided to introduce the new return system in a phased manner, as described below: 
a.   Between July, 2019 to September, 2019, the new return system (FORM GST ANX-1 & FORM GST ANX-2 only) to be available for trial for taxpayers. Taxp

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e their first FORM GST RET-01 for the quarter October, 2019 to December, 2019 in January, 2020; 
e. From January, 2020 onwards, FORM GSTR-3B to be completely phased out.
9.4.15   ITC: 
9.4.15.1   ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.
9.4.15.2   The due date for submitting FORM GST ITC-04 for the period July 2017 to March 2019 was extended till 31.08.2019.
9.4.16   TDS/TCS:
9.4.16.1   TDS/TCS provisions shall be implemented from 01.10.2018. 
9.4.16.2   Further, to provide some more time to TDS deductors to familiarize them with the new system, last date for furnishing return in FORM GSTR-7 for the months of October, 2018 to December, 2018 and January, 2019 was extended up to 28.02.2019. Further, exemption from TDS for been mad

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.1   A Group of Ministers has been constituted to study the revenue trend, including analyzing the reasons for structural patterns affecting the revenue collection in some of the States. The study would include the underlying reasons for deviation from the revenue collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues. 
9.4.20.2   The Group of Ministers will be assisted by the committee of experts from Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning), who would study and share the findings with GoM. The GoM in turn would give its recommendation to the GST Council.
9.4.20.3   The amount of IGST not apportioned to the Centre or the States/UTs may, for the time being, on the recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central Government and fifty per cent. to the State G

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eal Estate: 
9.4.21.1   The GST Council in its 33rd & 34th meetings held on 24.02.2019 & 19.03.2019 respectively have made following decisions with respect to the real estate sector:
9.4.21.2   GST shall be levied at effective rate of 5% on residential properties outside affordable segment and 1% on affordable housing properties. 
9.4.21.3   Definition of affordable housing: A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value up to Rs. 45 lacs (both for metropolitan and non-metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, and Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
9.4.21.4   Conditions for new tax rate:
a.   Input tax credit shall not be available
b.   80% of inputs and input services [other than capital goods, TDR/

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ill 20.05.2019 to the jurisdictional officers.
9.4.22   Lottery: 
9.4.22.1   The GST Council in its 32nd Meeting held on 10.01.2019 constituted a Group of Ministers to examine the GST Rate Structure on Lotteries.
9.4.23   Natural Calamity Cess: 
9.4.23.1   GST Council in its 32nd Meeting held on 10.01.2019 approved levy of Cess on Intra-State Supply of Goods and Services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.
9.4.23.2   Kerala Government has, accordingly, decided to levy one per cent. 'Kerala Flood Cess' on value of intra-state supply of goods by taxable person to an unregistered person in respect of supplies specified in TABLE under sub-clause (2) of clause 14 of the Kerala Finance Bill, 2019. The said cess would be levied from 01.08.2019.
9.4.23.3   The Kerala government has also decided to allow local bodies to collect entertainment tax on movie ticket

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r to provide to its employees, under any law for the time being in force.
9.4.25.2   The order of cross-utilization of input tax credit has been rationalized.
9.4.25.3   Commissioner empowered to extend the time limit for return of inputs and capital sent on job work, up to a period of one year and two years, respectively.
9.4.25.4   Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, would be outside India.
9.4.25.5   The following transactions to be treated as no supply (no tax payable) under Schedule III: 
a.   Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
b.   Supply of warehoused goods to any person before clearance for home consumption;
c.   Supply of goods in case o

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he present form, would not continue in GST. 
9.4.26.3   50% of the GST paid will be refunded to CSD (Defense Canteens).
9.4.26.4   Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government for handling their refund related applications.
9.4.26.5   There would be a single cash ledger for each tax head. The modalities for implementation would be finalized in consultation with GSTN and the Accounting authorities.
9.4.26.6   Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
9.4.26.7   A scheme for grant of refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange has been introduced w.e.f. 01.07.2019. 
10.   THE DESIGN OF INDIAN GST:
10.1 &nb

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upplier will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will claim credit of IGST while discharging his output tax liability in his own State.  The Centre will transfer to the importing State the credit of IGST used in payment of SGST.  The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds. The major advantages of IGST Model are:
a)   Maintenance of uninterrupted ITC chain on inter-State transactions.
b)   No upfront payment of tax or substantial blockage of funds for the interState supplier or recipient.
c)   No refund claim in exporting State, as ITC is used up while paying the tax.
d)   Self-mon

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7 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the revenue to be protected.  The growth rate of revenue for a State during the five-year period is assumed be 14% per annum. The base year tax revenue consists of the states' tax revenues from: (i) State Value Added Tax (VAT), (ii) central sales tax, (iii) entry tax, octroi, local body tax, (iv) taxes on luxuries, (v) taxes on advertisements, etc.  However, any revenue among these taxes arising related to supply of alcohol for human consumption, and five specified petroleum products, will not be accounted as part of the base year revenue. A GST Compensation Cess is levied

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neration of multiple e-way bills against one invoice.
10.6   Anti-Profiteering Mechanism: Implementation of GST in many countries was coupled with increase in inflation and the prices of the commodities. This happened in spite of the availability of the tax credit. This was happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices. 
10.6.1   National Anti-profiteering Authority (NAA) has been constituted under GST by the Central Government to examine the complaints of non-passing the benefit of reduced tax incidence. The Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.10.6.2  The Authority may determine whether any red

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erry, Sikkim, Telangana, Tripura and Uttarakhand) with effect from 01.04.2019. 
Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be Rs. 20 lakhs and Rs. 10 lakhs (in case of States of Manipur, Mizoram, Nagaland and Tripura). 
A common threshold exemption applies to both CGST and SGST. The benefit of threshold exemption, however, is not available in inter-State supplies of goods. 
10.9 Composition Scheme: Composition scheme has been formulated for small businessmen being supplier of goods and supplier of restaurant services. Under the scheme, person with turnover up to Rs. 1.5 crore (Rs. 75 lakhs in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand) needs to pay tax equal to 1% to 5% on his turnover and needs to file his returns annually with quarterly payment from FY 2019-20. 
Composition scheme has also been formulated for supplier of se

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c)   ITC of UTGST allowed for payment of UTGST & IGST in that order;
d)   ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order.
ITC of CGST cannot be used for payment of SGST/UTGST and vice versa. It has been further provided that IGST balances shall be exhausted for payment of IGST, CGST or SGST, as the case may be, before utilization of CGST or SGST.  
10.12   Settlement of Government Accounts: Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly, the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers.
10.1

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10.16 Tax Collection at Source: Obligation on electronic commerce operators to collect 'tax at source', at such rate not exceeding two per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. The provision for TCS has been operationalized w.e.f. 01st October, 2018.
10.17 Self-assessment: Self-assessment of the taxes payable by the registered person shall be the norm. Audit of registered persons shall be conducted on selective basis. Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication

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lected by the Union, Central Excise duty, Duties of Excise (Medicinal and Toilet Preparations), Additional Duties of Excise (Goods of Special Importance), Additional Duties of Excise (Textiles and Textile Products), Additional Duties of Customs (commonly known as CVD), Special Additional Duty of Customs (SAD), Service Tax and cesses and surcharges insofar as they related to supply of goods or services were subsumed. As far as taxes levied and collected by States are concerned, State VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax, Entertainment Tax (except those levied by the local bodies), Taxes on advertisements, Taxes on lotteries, betting and gambling, cesses and surcharges insofar as they related to supply of goods or services were subsumed.
11.   GST LEGISLATIONS:
11.1.   Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act were passed by the Parliament and since been notified on 12.04.2017. All the other States (

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cations under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. 19, 34 and 2 notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further,  88,  92,  88 and  10 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Similar notifications have been issued by all the States under the respective SGST Act. Apart from the notifications, 111 circulars, 18 orders and 14 Removal of Difficulty Orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc.
12.   ROLE OF CBIC:
12.1.   CBIC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, which will be exclusive domain of the Centre. This apart, the

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rocedures to more than 60,000 officers of CBIC and Commercial Tax officers of State Governments. 
12.3.   CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also continue to handle the work relating to levy and collection of customs duties.
12.4.   Director General of Anti-profiteering, CBIC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority.
12.5.   CBIC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implementation challenges faced by the taxpayer and act as an active interface between the taxpayer and the Government.
13.&

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inancial institutions, HDFC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic Investment holds 10% and LIC Housing Finance holds 10%. The GST Council in its 27th meeting held on 04.05.2018 has approved the change in shareholding pattern of GSTN. Considering the nature of 'state' function' performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-Governmental institutions in GSTN amounting to Rs. 5.1 crore, equally by the Centre and the State Governments. 
13.3.   The design of GST systems is based on role based access. The taxpayer can access his own data through identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per GST law, can access the data. Data can be accessed by audit authorities as per law. No other entity can have any access to data available with GSTN.
14.&n

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lakhs in certain cases) in case of supplier of goods have be registered under GST. Unlike multiple registrations under different tax regimes earlier, a single registration is needed under GST in one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover up to Rs. 1.5 crore (Rs. 75 lakhs in certain cases) in case of supplier of goods and restaurant services and Rs. 50 lakhs in case of supplier of services. With the creation of a seamless national market across the country, small enterprises will have an opportunity to expand their national footprint with minimal investment. 
14.4.   Benefits to agriculture and Industry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which

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ill result in harmonization of laws, procedures and rates of tax. It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth. Ultimately it will help in poverty eradication by generating more employment and more financial resources. More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST & SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the gro

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turn, common tax base, common system of classification of goods and services will lend greater certainty to taxation system.
15.   EXPERIENCE OF REGISTRATION, RETURN FILING & REVNUE: 
15.1.   Registration & Returns Snapshot:
S.
No.
Details
As on 30th June, 2019
1.
No. of transited (migrated) taxpayers 
66,25,077 
2.
Total No. of new applications received for registration
83,35,889
3.
No. of applications approved
 70,68,269
4.
No. of applications rejected
 12,15,592
5.
Total No. of taxpayers; new + migrated (1 + 3)
1,36,93,346  
6.
No. of taxpayers who have opted for composition scheme
17,74,379 
7.
No. of GSTR-3B returns filed for July, 2017
 65,89,550
8.
No. of GSTR-3B returns filed for August, 2017
 71,78,987
9.
No. of GSTR-3B returns filed for September, 2017
 75,28,488
10.
No. of GSTR-3B returns filed for October, 2017
 72,87,429
11.
No.

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of GSTR-3B returns filed for January, 2019
 84,00,520
26.
No. of GSTR-3B returns filed for February, 2019
 83,85,767
27.
No. of GSTR-3B returns filed for March, 2019
 82,26,711
28.
No. of GSTR-3B returns filed for April, 2019
 78,83,113
29.
No. of GSTR-3B returns filed for May, 2019
 74,37,995
30.
No. of GSTR 1 returns filed for July, 2017
 61,12,375
31.
No. of GSTR 1 returns filed for August, 2017
 25,70,070
32.
No. of GSTR 1 returns filed for September, 2017
 69,42,142
33.
No. of GSTR 1 returns filed for October, 2017
 26,54,530
34.
No. of GSTR 1 returns filed for November, 2017
 26,99,654
35.
No. of GSTR 1 returns filed for December, 2017
 70,56,169
36.
No. of GSTR 1 returns filed for January, 2018
 27,11,068
37.
No. of GSTR 1 returns filed for February, 2018
 27,24,503
38.
No. of GSTR 1 returns filed for March, 2018
 72,82,239
39.
No. of GSTR

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ly, 2017
25,72,552 
54.
No. of GSTR 4 returns filed for quarter JulySeptember, 2017
 10,13,901
55.
No. of GSTR 4 returns filed for quarter OctoberDecember, 2017
 15,23,811
56.
No. of GSTR 4 returns filed for quarter JanuaryMarch, 2018
 15,81,911
57.
No. of GSTR 4 returns filed for quarter April-June, 2018
 15,56,473
58.
No. of GSTR 4 returns filed for quarter JulySeptember, 2018
 15,16,977
59.
No. of GSTR 4 returns filed for quarter SeptemberDecember, 2018
 14,60,451
60.
No. of GSTR 4 returns filed for quarter JanuaryMarch, 2019
 13,58,151
 
15.2.   Revenue Collection Snapshot:
S. No.
Revenue Collected in the Month of
Amount (in Rs. Thousand crore)
1.  
July, 17
21,572
2.  
August, 17
95,633
3.  
September, 17
94,064
4.  
October, 17
93,333
5.  
November, 17
83,780
6.  
December, 17
84,314
7.  
January, 18
89,825
8.

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usiness community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity with the new regime and IT systems, legal challenges, return filing and reconciliations, passing on transition credit. Lack of robust IT infrastructure and system delays makes compliance difficult for the taxpayers. Many of the processes in the GST are new for small and medium enterprises in particular, who were not used to regular and online filing of returns and other formalities. 
16.2.   Based on the feedback received from businesses, consumers and taxpayers from across the country, attempt has been made to incorporate suggestions and reduce problems through short-term as well as long-term solutions. After rectifying system glitches, E-way bill for inter-State movement of goods has been successfully implemented from 01.04.2018. As regards intra-State supplies, option was given to States to choose any date on or before 03.06.2018. All S

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red, complex indirect tax structure with a simple, transparent and technology-driven tax regime. It will integrate India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business in the country and provide an impetus to “Make in India” campaign. GST will result in “ONE NATION, ONE TAX, ONE MARKET”.
*****
Note: This write-up is for education purposes only
=============
Document 1
Harmonization of Business
Processes and Formats
Common & Shared
IT
IT Infrastructure
Interfaces
Core Services
Registration
Returns
Payments
Helpdesk support
Information on Inter-State supply and
cross-credit utilization
Analytics
âš« IGST Settlement
Non-Statutory Functions
Statutory Functions
Autonomy of back-end systems of
States and Centre
Centre/States
Tax IT Systems
Approval of Registration
âš« Assessment
.
.
.
•
Refunds
Audit and Enf

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GST – An Update (As on 1st July, 2019)
GST
Dated:- 3-7-2019

=============
Document 1
Pradhan Mantri
Kaushal Vikas Yojana
(PMKVY)
Make
in India
GST
NATION
TAX
MARKET
Digital
India
Pradhan Mantri
Mudra Yojana
(
PMMY
)
GST
Start-Up
India
Port-led
Development
GST-An Update
(As on 1st July, 2019)
GMS AND
al-ifa
GOVERNMENT OF
दà¥â€¡Ã Â¤Â¶Ã Â¤Â¸Ã Â¥â€¡Ã Â¤ÂµÃ Â¤Â¾Ã Â¤Â°Ã Â¥ÂÃ Â¤Â¥ à¤â€¢Ã Â¤Â°Ã Â¤Â¸Ã Â¥â€¡
à¤â€°Ã Â¤Â¤Ã Â¥ÂÃ Â¤ÂªÃ Â¤Â¾Ã Â¤Â¦
शुल्à¤â€¢
This presentation is for education purposes only and
holds no
legal validity
The Journey to GST
In the year 2000, the then
Prime Minister introduced
the concept of GST and set
up a committee to design a
GST model for the country
2006
2000
Announcement by Union
Finance Minister, during budget
of 2006-07 that GST would
introduced from 1 April 2010
May 2017
GST Council
recommends
all the rules
All
except J&K
passed their
SGST ACT
States
30th June 2

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ional Perspective (1/2)
Article 366(12A)
Sl No Definition Article
1.
Goods
2.
Service
3.
State
Definition of GST
NATION
TAX
MARKET
“Goods and services tax” means any tax on supply of goods, or services or
both except taxes on the supply of the alcoholic liquor for human
consumption
366(12)
366 (26A)
Definition
Includes all materials, commodities, and articles [Pre Existing Definition]
Anything other than goods [Introduced vide 101st Constitutional Amendment
Act]
366(26B) With reference to articles 246A, 268, 269,269A and Article 279A includes a
Union territory with Legislature. [Introduced vide 101st Constitutional
Amendment Act]
“Goods and Services tax” law while having unique principles, has significant elements of prior Central
and State laws; and is also inspired by VAT/GST legislation of EU, Australia, Malaysia etc. along with
International VAT/GST guidelines of OECD
4
NATION
TAX
MARKET
GST Law from a Constitutional Perspective (2/2)
â

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ertainment Tax (other than those
levied by local bodies)
Luxury Tax
Entry Tax (All forms)
Taxes on lottery, betting & gambling
Surcharges & Cesses
GST
+13 Cesses
NATION
TAX
MARKET
Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre
to tax sale of goods and States to tax provision of services)
Central Taxes
Tax
Administrations
CEX/ST Act & Rules
Procedures
Multiple State Taxes
Multiple State Tax
Administrations
Multiple Acts & Rules
Multiple procedures
Pre-GST Indirect tax structure in India
Single Tax-GST
Single Tax
Administration
Uniform law
Computerized
uniform procedures
Customs
Duty
Central
Sales Tax
Central
Levies
Excise
Duty
Service
ТаÑ…
Entry Tax & Octroi
Entertainment Tax
Electricity Duty
Luxury Tax
VAT
State
Levies
GST
CGST
SGST/UTGST
IGST
GST Structure in India
Outside GST!
00
8
Alcohol for human
consumption
Power to tax remains with the
State
Five petroleum
products

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decide
any matter.
â–  Till its 34th meeting, GST Council has taken 1064 decisions which include 219 decisions taken by
the GST Implementation Council (GIC).
✓
1006 decisions have been implemented and only a total of 58 decisions (of which 39 were
unique issues) were under implementation.
✓ In other words, 94.5% of the decisions of the GST Council have already been implemented,
which is a significant achievement given the complicated nature and wide area of subjects/issues
involved and the fact that all decisions were taken unanimously.
NATION
TAX
MARKET
12
NATION
TAX
MARKET
Registration and Threshold (1/19)
â–  Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of
services would be Rs. 20 lakhs and Rs. 10 lakhs (for States of Manipur, Mizoram, Nagaland and Tripura).
â–  Threshold limits of aggregate turnover for exemption from registration and payment of GST for the suppliers
of goods wou

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istration, which were cancelled till 31.03.2019, has been allowed. The
application for revocation can be filed till 22.07.2019.
13
Migration (2/19)
NATION
TAX
MARKET
â–  One more window for completion of migration process permitted. Due date for the taxpayers who
did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till
31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer was extended till
31.01.2019.
â–  Due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February,
2019/quarters July, 2017 to December, 2018 by such taxpayers was extended till 31.03.2019.
14
Composition Scheme (3/19)
Composition threshold limit increased to be Rs. 1.5 Crore.
Composition scheme shall not be available to inter-State suppliers and specified category of
manufacturers.
Compliance under Composition Scheme simplified – Taxpayers under Composition scheme have been
allowed to pay 'self-assessed

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uring the middle of a financial year has to
inform the government about his choice by filing FORM
GST CMP-02.
The GST Council in its 35th meeting held on 21.06.2019
decided that the last date for filing of intimation, in FORM
GST CMP-02, for availing the option of payment of tax
under notification No. 2/2019-Central Tax (Rate) dated
07.03.2019 is extended from 30.04.2019 to 31.07.2019.
15
NATION
TAX
MARKET
Tax Administration (4/19)
â–  In order to ensure single interface, all administrative control over 90% of taxpayers
having turnover below Rs. 1.5 crore would vest with State tax administration and over
10% with the Central tax administration. Further, all administrative control over
taxpayers having turnover above Rs.1.5 crore shall be divided equally in the ratio of
50% each for the Central and State tax administration.
â–  Powers under the IGST Act shall also be cross-empowered on the same basis as under
CGST and SGST Acts with few exceptions.
â–  Po

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notification No. 11/2017- Central Tax
(Rate) dated 28.06.2017,
✓ cement which constitute the shortfall from the minimum value of goods or services or both required to be
purchased by a promoter for construction of project as prescribed in notification No. 11/2017- Central Tax (Rate),
and
capital goods supplied to a promoter for construction of a project on which tax is payable or paid at the rate
prescribed in notification No. 11/2017- Central Tax (Rate).
Earlier, the reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-
section (4) of section 5 of the IGST Act, 2017 was kept under suspension till 30.09.2019.
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Payment of Tax (6/19)
â–  There shall be no requirement on payment of tax on advances received for supply of
goods by all taxpayers.
â–  A Group of Ministers constituted for promoting digital payment has recommended to
allow cash back to an amount equal to 20% of GST paid or Rs. 100/-, w

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ally on
the common portal at the time of filing of the
refund application itself, thereby obviating the
need for a taxpayer to physically visit a tax
office for submission of a refund application.
â–  Completely electronic refund module has also
been finalized and will be deployed soon.
Export
(7/19)
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â–  E-Wallet Scheme shall be introduced for
exporters soon and till then relief for
exporters shall be given in form of broadly
existing practice.
Supply of services to qualify as exports,
even if payment is received in Indian
Rupees, where permitted by the RBI.
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Return and Late Fees (8/19)
â–  All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.
Taxpayers with turnover up to Rs. 1.5 Cr are required to file information in FORM GSTR-1 on a
quarterly basis.
✓ Other taxpayers would have to file FORM GSTR-1 on a monthly basis.
â–  On account of difficulties being faced by taxpa

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e for reporting details of outward supplies (FORM GST
ANX-1) and one for availing input tax credit (FORM GST ANX-2) based on invoices, etc. uploaded by the supplier.
Invoices can be uploaded continuously by the supplier and can be continuously viewed and accepted by the recipient
for availing input tax credit. This process would ensure that very large part of the return is auto-populated based on the
invoices uploaded by the buyer and the supplier. Simply put, the process would be “UPLOAD – LOCK- PAY” for
most tax payers.
Taxpayers would have the facility to create his profile based on nature of supplies made and received. The information
which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
There shall be quarterly filing of return for the small taxpayers having turnover up to Rs. 5 Cr as an optional facility.
Quarterly return

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2019, the new return system (FORM GST ANX-1 & FORM GST ANX-2
only) to be available for trial for taxpayers. Taxpayers to continue to file FORM GSTR-1 & FORM GSTR-3B as
at present;
✓ From October, 2019 onwards, FORM GST ANX-1 to be made compulsory. Large taxpayers (having aggregate
turnover of more than Rs. 5 crores in previous year) to file FORM GST ANX-1 on monthly basis whereas small
taxpayers to file first FORM GST ANX-1 for the quarter October, 2019 to December, 2019 in January, 2020;
✓ For October and November, 2019, large taxpayers to continue to file FORM GSTR-3B on monthly basis and
will file first FORM GST RET-01 for December, 2019 in January, 2020. It may be noted that invoices etc. can be
uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019
onwards. FORM GST ANX-2 may be viewed simultaneously during this period but no action shall be allowed on
such FORM GST ANX-2;
✓ From October, 2019, small taxp

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filing of
returns for two consecutive tax periods, be brought into effect from 21.08.2019.
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22
23
ITC
â–  ITC in relation to invoices issued by the
supplier during FY 2017-18 may be availed by
the recipient till the due date for furnishing of
FORM GSTR-3B for the month of March,
2019, subject to specified conditions.
â–  To provide sufficient time to the trade and
industry to furnish the declaration in FORM
GST ITC-04, relating to job work, the GST
Council in is 35th meeting held on 21.06.2019
extended the due date for furnishing the said
form for the period July, 2017 to June, 2019 till
31.08.2019.
TDS/TCS
(11/19)
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â–ª TDS/TCS provisions implemented from
01.10.2018.
Further, to provide some more time to TDS
deductors to familiarize themselves with
the new system, last date for furnishing
return in FORM GSTR-7 for the months
of October, 2018 to December, 2018 and
January, 2019 extended up to 28.02.2019.
Exemption from TDS fo

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ransactions.
The Phase 1 is proposed to be voluntary and it
shall be rolled out from Jan, 2020.
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â—‰
Real Estate (13/19)
GST shall be levied at effective rate of 5% on residential properties outside affordable segment and 1% on affordable housing
properties.
Definition of affordable housing: A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and
60 sqm in metropolitan cities having value up to Rs. 45 lakhs (both for metropolitan and non-metropolitan cities). Metropolitan
Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad),
Hyderabad, Kolkata and Mumbai (whole of MMR).
GST exemption on TDR/JDA, long term lease (premium), FSI: Intermediate tax on development right, such as TDR, JDA,
lease (premium), FSI shall be exempted only for such residential property on which GST is payable.
Conditions for new tax rate:
✓ Input tax credit shall not b

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Kerala Government has, accordingly, decided to levy one per cent. 'Kerala Flood Cess' on value of intra-
state supply of goods by taxable person to an unregistered person in respect of supplies specified in
TABLE under sub-clause (2) of clause 14 of the Kerala Finance Bill, 2019.
The said flood cess shall be levied from 01.08.2019.
Kerala government has also decided to allow local bodies to collect entertainment tax on movie tickets up
to 10 per cent.
27
Recent Law amendments w.e.f. 01.02.2019 (15/19)
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â–  Scope of input tax credit has been widened, and it would now be made available in respect of
the following:
Most of the activities or transactions specified in Schedule III
✓ Motor vehicles for transportation of persons having seating capacity of more than thirteen
(including driver), vessels and aircraft
✓
Services of general insurance, repair and maintenance in respect of motor vehicles, vessels
and aircraft on which credit is ava

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ion;
Supply of goods in case of high sea sales.
Registered persons may issue consolidated credit/debit notes in respect of multiple invoices
issued in a Financial Year.
Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the
Appellate Tribunal capped at Rs. 25 Cr and Rs. 50 Cr respectively.
Recovery can be made from distinct persons, even if present in different State/Union territories.
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Recent Law amendments w.e.f. 01.02.2019 (Contd.) (17/19)
Amount of IGST not apportioned to the Centre or the States/UTs may, for the time being, on the
recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central
Government and fifty per cent. to the State Governments or the Union territories, as the case
may be, on ad-hoc basis and this amount shall be adjusted against the amount finally
apportioned.
Fifty per cent. of such amount, as may be recommended by the Council, which remains
unutilized in th

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ernment for handling their refund related applications.
Rate of interest on delayed payments and delayed refund has been recommended.
â–  Supply from GTA to unregistered persons has been exempted from tax.
â–  Group of Ministers has been constituted to examine the GST Rate Structure on Lotteries.
â–  Group of Ministers has been constituted to look into the issues being faced by MSMEs and to provide
solutions for the same.
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Other decisions (19/19)
In principle approval has been given for creation of a Centralized Appellate Authority for Advance Ruling
(AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling
Authorities on the same issue. This would be implemented once the law is amended.
Existing tax incentive schemes of Central or State governments may be continued by respective
government by way of reimbursement through budgetary route. The schemes, in the present form, would
not continue in GST.

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iers of goods only if the turnover exceeds Rs.40 lakhs (Rs.20
lakhs in case of States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland,
Puducherry, Sikkim, Telangana, Tripura and Uttarakhand)
Main Features of the GST Act (2/5)
Option of Voluntary Registration
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Composition threshold shall be Rs. 150 lakhs, special category States of Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand
have the said limit as Rs. 75 lakhs
✓ Composition scheme shall not be available to inter-State suppliers, and specified
category of manufacturers
Deemed Registration in three working days
Input Tax Credit available on taxes paid on all procurements (except few specified
items)
33
Main Features of the GST Act (3/5)
Set of auto-populated Monthly returns and Annual Return
Composition taxpayers to file Quarterly returns
Automatic generation of returns
GST Practitioners for assisting filing of returns
GSTN and GST Suvid

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System of GST Compliance Rating
Anti-Profiteering provision
—
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National Anti-Profiteering Authority (NAA) set up to examine the complaints of non-
passing the benefit of reduced tax incidence.
A three-tier structure adopted to investigate anti-profiteering complaints from consumers.
At the initial level are the state screening committees and a national standing committee to examine complaints.
These committees refer complaints to the Director General of Safeguards (DGAP), mandated to conduct a thorough
investigation by seeking information from the companies concerned.
The third and final level is the NAA, which examines the investigation report and hears the company and the
complainant before pronouncing a final decision.
36
Benefits of GST (1/2)
37
1
Reduction in Cascading of Taxes
2
Overall Reduction in Prices
3 Common National Market
4
Benefits to Small Taxpayers
5 Self-Regulating Tax System
6 Non-Intrusive Electronic Tax System
Decr

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idha Providers (GSPs)
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Goods and Service Tax Network (2/4)
GST Council in its 27th meeting held on 04.05.2018 has approved the change in
shareholding pattern of GSTN
Considering the nature of 'state' function' performed by GSTN, the GST Council felt
that GSTN be converted into a fully owned Government company
Accordingly, the GST Council approved acquisition of entire 51 per cent of equity
held by non-Governmental institutions in GSTN amounting to Rs. 5.1 Cr, equally by
the Centre and the State Governments
40
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Goods and Service Tax Network (3/4)
Harmonization of Business Processes and
Formats
Autonomy of back-end systems of States
and Centre
Common & Shared
IT Infrastructure
Core Services
–
Registration
–
Returns
Payments
Helpdesk support
Information on Inter-State supply and cross-
credit utilization
Analytics
IGST Settlement
Front-end
Non-Statutory Functions
IT
Interfaces
Statutory Functions
•
•

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for administration of the CGST and IGST law
Assessment, Audit, Anti-evasion & enforcement under CGST, UTGST & IGST Law
Levy & collection of Central Excise duty on products outside GST – Petroleum Products
& Tobacco
Levy & collection of Customs duties
Developing linkages of CBIC – GST System with GSTN
Training of officials of both Centre & States
Outreach programs for Trade and Industry
Director General of Anti – Profiteering, CBIC has been mandated to conduct detailed
enquiry on anti-profiteering cases
44
Pradhan Mantri
Kaushal Vikas Yojana
(PMKVY)
GST
Start-Up
India
www.cbic.gov.in-led
www.cbic-gst.gov.inent
CBIC Help Desk
Toll Free: 1800 1200 232
Email: cbecmitra.helpdesk@icegate.gov.in
Make
in India
GST
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Digital
India
Pradhan Mantri
Mudra Yojana
(
PMMY
)
GSTN Help Desk
Toll Free: 0124-4688999
Email: helpdesk@gst.gov.in
GMS AND
al-ifa
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GOVERNMENT OF
दà¥â€¡Ã Â¤Â¶Ã Â¤Â¸Ã Â¥â€¡Ã Â¤ÂµÃ

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The Minister of State for Finance
GST
Dated:- 2-7-2019

The Minister of State for Finance & Corporate Affairs, Shri Anurag Singh Thakur calls upon all the Officers of CBIC to make GST in India the best GST available in the world;
GST Day Celebrations organized by the Central Board of Indirect Taxes &Customs (CBIC) on the 2nd Anniversary of GST in New Delhi;
GST to be a WIN-WIN situation for all the stakeholders associated with the best tax GST
The Minister of State for Finance & Corporate Affairs, Shri Anurag Singh Thakur said that Goods & Services Tax (GST) has been a Game Changer for all the stakeholders in the economy. The Minister of State for Finance, Shri Thakur was speaking at the 'GST Day' Celebrations organized by the Central Board of Indirect Taxes &Customs (CBIC) on the 2nd Anniversary of GST in New Delhi.
Prior to GST, in the Constitutional Scheme, Shri Thakur said that taxation power with the Central Government on goods was limited-up to the stage of manuf

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ghtly called GST as “Good and Simple Tax.'' He said that it is a shining example of GST having made India a true common market is that the transport time and cost of moving goods across the length and breadth of the country have come down significantly. Shri Thakur said that there are so many other positives that do not need reiteration”. He has stated that all the decisions taken in GST Council are on consensus basis.He called upon all Officers to make GST in India the best GST available in the world. He stated that the CBIC has done very good job for MSME sector. The NACIN has conducted GST training for all Officers apart from the support given to GST Practitioners.He has cautioned about fake invoices in GST bring bad name and urged the leaders of Industry to take corrective steps. Adding his concern over fake invoice menace, the Minister added that “IMANDAR TAXPAYERS SE BAIR NAHIN, FAKE INVOICES WALON KI KHAIR NAHIN”. He summed-up GST to be a WIN-WIN situation for all the stakeholde

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Nation, One Market and One Tax' for sincerely making Indian economy stronger than before. He further added that CBIC had been releasing SOPs and FAQs about various concerning provisions like TDS, Anti-Profiteering etc. and will continue to take such measures as and when required.
Speaking on the occasion, Shri Ajay Bhushan Pandey, Revenue Secretary said that GST is an excellent example of Federal Cooperation. There are 1.2 Crore tax payers who have registered on GSTN. Around 70 lakh tax payers regularly file returns and an amount of ₹ 1 lakh Crore of tax is paid online.He further stated that the return filing process, refund sanction procedure and multiple ledger etc. have been streamlined. The e-invoice is proposed to be released which will streamline Return Filing Process. He called upon the officers that on this Day, we should remember what can be further done for trade facilitation.
At the end, proposing Vote of Thanks, Shri John Joseph, Member (Tax Policy),CBIC assured a

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GST Revenue collection for the month of June, 2019 stands at 99,939 crore
GST
Dated:- 1-7-2019

GST Revenue collection for the month of June, 2019 stands at ₹ 99,939 crore
Total number of GSTR 3B Returns filed for the month of May up to 30th June, 2019 stands at 74.38 lakh
Total gross GST revenue collected in the month of June, 2019 is ₹ 99,939 crore of which CGST is ₹ 18,366 crore, SGST is ₹ 25,343 crore, IGST is ₹ 47,772 crore (including ₹ 21,

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2nd anniversary of Goods & Services Tax to be celebrated on 1st July 2019
GST
Dated:- 1-7-2019

The second anniversary of Good & Services Tax (GST) will be celebrated tomorrow with Hon'ble Union Minister of State of Finance and Corporate Affairs Shri Anurag Thakur presiding over the event.
Shri Subhash C. Garg, Secretary, Department of Economic Affairs, Dr. Ajay Bhushan Pandey, Revenue Secretary, Secretaries of the Ministries of Finance, Shri P.K. Das, Chairman CBIC, Members of CBIC, and senior officers of various Ministries of Government of India will also attend the event. Senior functionaries of the apex chambers of commerce, trade and industry will also be present in large numbers. Similar functions will be held across the country in all States and Union Territories.
GST was launched on the 1st July, 2017 in a majestic ceremony held in the Central Hall of Parliament on the midnight of 30th June, 2017. Hence, the Government alongwith partners from the trade and indust

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oting Trade and Industry: Seamless flow of tax credit.
* Spurring Economic Growth: Creation of unified common national market.
Some developments during the GST journey since 2017:
* Subsuming of taxes: It was new experience of subsuming 17 different types of taxes under GST. Pre – GST, Trade & Industry had to undergo compliances under Central Excise, Service Tax & VAT and doing business in multiple states involved adhering to different VAT laws, compliance through different portals and answering to different authorities. All that has been unified into a single robust online system.Starting up has become simple with one-stop online GST registration for wanting to do business anywhere in the country.
* Formalisation of economy: More and more businesses moving in the formal economy is evident from the significant increase in the GST taxpayer base. Moving to the formal economy has brought in more visibility and hence more opportunities for Trade and Industry.
* State borders: The

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f four Tax returns in a month (GSTR-3B, 1, 2 & 3) was gradually curtailed to two tax returns viz: GSTR-3B & 1. Further the Govt. extended due dates for filing tax returns as and when felt necessary. Quarterly Returns were also prescribed for small taxpayers. Reduction in the late fee payable for delay in filing tax returns from ₹ 200/- per day to ₹ 50/-per day /₹ 20/- per day. For the Trade and Industry whose turnover was turnover below five crores, quarterly return filling system is proposed. This will benefit 93% of the taxpayers, reduce their compliance burden and increase ease of doing business.
* Exports & Refunds: Exports are made possible on the basis of Bond/LUT and without payment of IGST tax. A major package for exporters / merchant exporters has been announced after discussions with various Export Promotion Councils & organizations like FIEO, APEC, GJEPC, EEPC, Handicraft EPC etc. Refund Fortnights were conducted on 15th March to 31st March, 2018, 31st M

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n such a manner that earlier 20 heads are merged into 5 major heads. There is only one Cash Ledger for Tax , interest, penalty, fee & others .
* Single Refund Disbursing: The Central or State Government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and Cess.
* Threshold limit for goods: Threshold Limit of ₹ 40 Lacs is offered of suppliers of goods as per the choice of States.
* Composition Scheme for Services: Composition Scheme for small service providers up to annual turnover of ₹ 50 lacs with a tax rate of 6%
* E-invoicing system: Electronic invoicing system in a phase-wise manner for B2B transactions is proposed to be introduced.
* GSTAT: GST Appellate Tribunals are being established at various State Headquarters and area benches also.
The introduction of GST is a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regim

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The Regional Unit, Rohtak of the Directorate General of GST Intelligence (DGGI) arrests one person who was found involved in issuing fake invoices from various firms without actual movement of goods having taxable value of 146.62 crore and fraudulently passing ITC amounting to 16.54 crore
GST
Dated:- 27-6-2019

The Directorate General of GST Intelligence (DGGI), Regional Unit, Rohtak (Haryana) has arrested one person named Shri Sunny Singhal of Panipat who was found involved in issuing fake invoices from various firms without actual movement of goods having taxable value of ₹ 146.62 Crores and fraudulently passing ITC amounting to ₹ 16.54 Crores. He passed on such fraudulent ITC to some of the buyers who availed of

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GOODS AND SERVICE TAX (GST) CONCEPT & STATUS updated on 01-06-2019
GST
Dated:- 27-6-2019

GOODS AND SERVICE TAX (GST) CONCEPT & STATUS
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC)
DEPARTMENT OF REVENUE
MINISTRY OF FINANCE
GOVERNMENT OF INDIA
AS ON 01st June, 2019
The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great co

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IONAL SCHEME OF INDIRECT TAXATION IN INDIA BEFORE GST :
2.1 Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate.
2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted in the Union List of the Seventh Schedule of the Constitution by the Constitution (Eig

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levied by the Union.
3. HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POSTINDEPENDENCE INDIA TILL GST:
3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue.
3.2 The power to levy tax on sale and purchase of goods in the course of interState trade and commerce was assigned to the Union by the Constitution (Sixth Amendment) Act, 1956. By mid-1970s, central excise duty was

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y 1996-97.
3.4 The next wave of reform in indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A few commodities were subjected to special excise duty.
3.5 Taxation of services by the Union was introduced in 1994 bringing in its ambit only three services, namely general

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fferent commodities in different States. Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling.
3.7 A report, titled "Reform of Domestic Trade Taxes in India", on reforming indirect taxes, especially State sales tax, by National Institute of Public Finance and Policy under the leadership of Dr. Amaresh Bagchi, was prepared in 1994. This Report prepared the ground for implementation of VAT in States. Some of the key recommendations were; replacing sales tax by VAT by moving

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he Empowered Committee of State Finance Ministers (EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008.
4. INTERNATIONAL PERSPECTIVES ON GST / VAT:
4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to another in terms of its technical aspects like 'definition of supply', 'extent of coverage of goods and services', 'treatment of exemptions and zero rating' etc. However, at a broader level, it has one common principle, it is a destination based consumption tax. From

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ovinces have joined federal GST and others have not. Provinces which administer their taxes separately are called 'non- participating provinces', whereas provinces which have teamed up with the Federal Government for tax administration are called 'participating provinces'.
4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%.
5. NEED FOR GST IN INDIA:
5.1 The introduction of CENVAT removed to a great extent cascading burden by expanding the coverage of credit for all inputs, including capital goods. CENVAT scheme later also allowed credit of services and the basket of inputs, capital goods and input services could be used for payment of both central excise duty and service tax. Similarly, the introduction o

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basic principles of consumption taxes that tax should accrue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST.
5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited up to the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powers to tax certain services specified in clause (29A) of Article 366 of the Constitution. This sort of division of taxing powers created a grey zone which led to legal disputes. Determination of what constitutes a goods or service is difficult because in modern complex system of production, a product is normally a mixture of goods and services.
5.5 As can be seen from the previous paragraphs,

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and set up a committee to design a GST model for the country. In 2003, the Central Government formed a taskforce on Fiscal Responsibility and Budget Management, which in 2004 recommended GST to replace the existing tax regime by introducing a comprehensive tax on all goods and services replacing Central level VAT and State level VATs. It recommended replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all stages of the value chain. An announcement was made by the then Union Finance Minister in Budget (2006-07) to the effect that GST would be introduced with effect from April 1, 2010 and that the EC, on his request, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its Co-conveners

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final version of the views of EC on the model and road map for the GST was prepared (April 30, 2008). These views of EC were then sent to the Government of India, and the comments of Government of India were received on December 12, 2008. These comments were duly considered by the EC (December 16, 2008), and it was decided that a Committee of Principal Secretaries/Secretaries of Finance/Taxation and Commissioners of Trade Taxes of the States would be set up to consider these comments, and submit their views. These views were submitted and were accepted in principle by the EC (January 21, 2009). Based on discussions within the EC and between the EC and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the proposed GST and has formed the basis for discussion between the Centre and the States.
7. CHALLENGES IN DESIGNING GST:
7.1 In the discussion that preceded amendment in the Constitution for GST, there

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t of origin based taxation is that they need to collect at least some tax from inter-State sales in order to recover the cost of infrastructure and public services provided by the State Governments to the industries producing the goods which are consumed in other states. This line of reasoning is based on the assumption that in the absence of a tax on inter-State sales, the location of export industries within their jurisdiction would not contribute to the tax revenues of the exporting state. This view was missing the fact that any value addition in a jurisdiction necessarily means extra income in the hands of the residents of that jurisdiction. Spending of this income on consumer goods expands the sales tax base of the producing states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are dependent on the level of income of the residents of a State, it is the producing States that stand to gain the most in additional sales tax revenues (even

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the sake of analytical clarity and precision it is appropriate to think of the RNR as a single rate. It is a given single rate that gets converted into a whole rate structure, depending on policy choices about exemptions, what commodities to charge at a lower rate and what to charge at a very high rate.
7.3.2 The Committee recommended RNR of 15-15.5% (to be levied by the Centre and States combined). The lower rates (to be applied to certain goods consumed by the poor) should be 12%. Further, the sin or demerit rates (to be applied on luxury cars, aerated beverages, pan masala, and tobacco) should be 40%.
7.4 Dispute Settlement: A harmonized system of taxation necessarily required that all stakeholders stick to the decisions taken by the supreme body, which was later constituted as the Goods and Services Tax Council (the Council). However, the possibility of departure from the recommendations of such body cannot be completely ruled out. Any departure would definitely affect other sta

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inances and moreover loss of autonomy in collection of tax revenue, States unanimously argued for exclusion of these products from the ambit of GST. In the 115th Amendment Bill alcoholic liquor for human consumption and five petroleum products namely crude petroleum, high speed diesel, motor spirit or petrol, aviation turbine fuel and natural gas were kept out of GST. But in the 122nd Amendment Bill, only alcoholic liquor for human consumption was kept outside GST and above mentioned five petroleum products were proposed to be brought under GST from a date to be recommended by the Council. The Central Government has also retained its power to tax tobacco and tobacco products, though these are also under GST. Thus, to ensure smooth transition and provide fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST.
8. CONSTITUTIONAL AMENDMENT:
8.1 As explained above, unification of Central VAT and State VAT was possible in form of a dual levy under the con

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ST, was introduced in the Lok Sabha on 11.03.2011. The Bill was referred to the Standing Committee on Finance on 29.03.2011. The Standing Committee submitted its report on the Bill in August, 2013. However, the Bill, which was pending in the Lok Sabha, lapsed with the dissolution of the 15th Lok Sabha.
8.3 The Constitution (122nd Amendment) Bill, 2014 was introduced in the 16th Lok Sabha on 19.12.2014. The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12.05.2015. The Select Committee submitted its Report on the Bill on 22.07.2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill was ratified by required number of States and received assent of the President on 8th September, 2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16.09.2016.
8.4 The important changes introduced in the Cons

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of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce.
d) Article 270 has been amended to provide for distribution of goods and services tax collected by the Union between the Union and the States.
e) Article 271 has been amended which restricts power of the Parliament to levy surcharge under GST. In effect, surcharge cannot be imposed on goods and services which are subject to tax under Article 246A.
f) Article 279A has been inserted to provide for the constitution and mandate of GST Council.
g) Article 366 has been amended to exclude alcoholic liquor for human consumption from the ambit of GST, and services have been defined.
h) Article 368 has been amended to provide for a special procedure which requires the ratification of the Bill by the legislatures of not less than one half of the States in addition to the method of voting provided for amendment of the Constitution. Thus, any modification in GST Coun

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ce Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as members. It shall make recommendations to the Union and the States on the following issues:
a) the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed under GST;
b) the goods and services that may be subjected to or exempted from the GST;
c) model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply;
d) the threshold limit of turnover below which the goods and services may be exempted from GST;
e) the rates including floor rates with bands of GST;
f) any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster;
g) special provision with respect to the North- East States, J&K, Himachal
Pradesh and Uttarakhand; and
h) any other matter relating to the GST, as the Council may decide.

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third of the total votes cast, and
b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.
9.4 The Council has met for 34 times and no occasion has arisen so far that required voting to decide any matter. Till its 34th meeting, GST Council has taken 1064 decisions which include 219 decisions taken by the GST Implementation Council (GIC). Till now, 1006 decisions have been implemented and only a total of 58 decisions (of which 39 were unique issues) were under implementation at different stages with different sections of DoR/CBIC/GSTN. In other words, 94.5% of the decisions of the GST Council have already been implemented, which is a significant achievement given the complicated nature and wide area of subjects/issues involved and the fact that all decisions were taken unanimously.
The following major recommendations have been made by the Council:
9.4.1 Legal/Rules:
9.4.1.1 Recommending GST laws, namel

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rry, Sikkim, Telangana, Tripura and Uttarakhand with effect from 01.04.2019.
9.4.2.3 The following classes of taxpayers shall be exempted from obtaining registration:
a. Suppliers of services, having turnover up to ₹ 20 lakh, making inter State supplies;
b. Suppliers of services, having turnover up to ₹ 20 lakh, making supplies through e-commerce platforms.
9.4.2.4 Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
9.4.2.5 Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
9.4.2.6 Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
9.4.2.7 A Removal of Difficulty order has been issued to allow revocation of cancellation of those registrations, which were cancelled till 31.03.

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nd needs to file his returns annually with quarterly payment from FY 2019-20.
9.4.4.2 Composition scheme has been made available for suppliers of services
(to those who are not eligible for the presently available Composition Scheme) with a tax rate of 6% (3% CGST +3% SGST) having an annual turnover in the preceding FY up to ₹ 50 lakhs. They would be liable to file one Annual Return with quarterly payment of taxes. This has been made effective from 01.04.2019.
9.4.4.3 Taxpayers under Composition scheme have been allowed to pay 'self-assessed tax' on a quarterly basis till 18th of the month succeeding such quarter and furnish a return till 30th April for the previous financial year.
9.4.4.4 Composition scheme shall not be available to inter-State suppliers and specified category of manufacturers.
9.4.5 E-way bill system
9.4.5.1 The generation of e-way bill would be barred if a supplier or recipient does not file GST returns for 2 consecutive tax periods. This will be made ap

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of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council. In this regard, notification No. 07/2019- Central Tax (Rate) dated 29.03.2019 has been issued which prescribes that the promoter shall pay tax on reverse charge basis w.e.f. 01.04.2019 on following supplies received from unregistered suppliers –
a. such supplies which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of a project as prescribed in notification No. 11/2017-Central Tax (Rate) dated 28.06.2017;
b. cement which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project as prescribed in notification No. 11/2017-Central Tax (Rate); and
c. capital goods supplied to a promoter for

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should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger. This would be implemented once the law is amended.
9.4.10 Exemption:
9.4.10.1 Supply from GTA to unregistered persons has been exempted from tax.
9.4.11 Refunds:
9.4.11.1 A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented soon. The modalities for the same are being finalized.
9.4.11.2 All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application.
9.4.11.3 Fully automated refund module is being developed and will be depl

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whose tax liability for that month was not 'NIL' will be ₹ 50/- per day instead of ₹ 200/- per day.
9.4.14 New Return System:
9.4.14.1 The proto type for new return filing system has been released in June 2019. Transition plan for New return system has been finalized and the new system would be introduced in a phased manner.
9.4.14.2 The new return system is simple with two main annexures. One for reporting details of outward supplies (FORM GST ANX-1) and the other for availing input tax credit (FORM GST ANX-2) based on invoices, etc. uploaded by the supplier.
9.4.14.3 Invoices can be uploaded continuously by the supplier and can be continuously viewed and locked by the recipient for availing input tax credit. This process would ensure that very large part of the return is auto-populated based on the invoices uploaded by the buyer and the supplier. Simply put, the process would be “UPLOAD – LOCK – PAY” for most tax payers.
9.4.14.4 Taxpayers would have the facility to

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urn. Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.
9.4.15 ITC:
9.4.15.1 ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.
9.4.15.2 The due date for submitting FORM GST ITC-04 for the period July 2017 to March 2019 was extended till 30.06.2019.
9.4.16 TDS/TCS:
9.4.16.1 TDS/TCS provisions shall be implemented from 01.10.2018.
9.4.16.2 Further, to provide some more time to TDS deductors to familiarize them with the new system, last date for furnishing return in FORM GSTR-7 for the months of October, 2018 to December, 2018 and January, 2019 was extended up to 28.02.2019. Further, exemption from TDS for been made for supply made by Government / PSU to another Government /PSU.
9.4.17 Export:
9.4.17.1 E-Wallet Scheme shall be introduced for exporte

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collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues.
9.4.20.2 The Group of Ministers will be assisted by the committee of experts from Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning), who would study and share the findings with GoM. The GoM in turn would give its recommendation to the GST Council.
9.4.20.3 The amount of IGST not apportioned to the Centre or the States/UTs may, for the time being, on the recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central Government and fifty per cent. to the State Governments or the Union territories, as the case may be, on ad-hoc basis and this amount shall be adjusted against the amount finally apportioned.
9.4.20.4 Fifty per cent. of such amount, as may be recommended by the Council, which remains unutilized in the Compensation Fund, at any point of time in any f

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ion of affordable housing: A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value up to ₹ 45 lacs (both for metropolitan and non-metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, and Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
9.4.21.4 Conditions for new tax rate:
a. Input tax credit shall not be available
b. 80% of inputs and input services [other than capital goods, TDR/ JDA, FSI, long term lease (premiums)] shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.
9.4.21.5 GST exemption on TDR/ JDA, long term lease (premium), FSI:
Intermediate tax on development right, such as TD

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s, accordingly, decided to levy one per cent. 'Kerala Flood Cess' on value of intra-state supply of goods by taxable person to an unregistered person in respect of supplies specified in TABLE under sub-clause (2) of clause 14 of the Kerala Finance Bill, 2019. The said cess would be levied from 01.07.2019.
9.4.23.3 The Kerala government has also decided to allow local bodies to collect entertainment tax on movie tickets up to 10 per cent.
9.4.24 Recent Law amendments w.e.f. 01.02.2019:
9.4.24.1 Scope of input tax credit has been widened, and it would now be made available in respect of the following:
a. Most of the activities or transactions specified in Schedule III;
b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
c. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available;
d. Goods or services which are obligato

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tes in respect of multiple invoices issued in a Financial Year.
9.4.24.7 Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal capped at ₹ 25 crore and ₹ 50 crore respectively.
9.4.24.8 Recovery can be made from distinct persons, even if present in different State/Union territories.
9.4.25 Others:
9.4.25.1 In principle approval has been given for creation of a Centralized Appellate Authority for Advance Ruling (AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue. This would be implemented once the law is amended.
9.4.25.2 Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST.
9.4.25.3 50% of the GST paid will be refunded to CSD (Defense Canteens).
9.4.25.4 Centralized UIN shall be is

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taxable intra-State supplies.
10.2 The IGST Model: Inter-State supply of goods or services shall be subjected to integrated GST (Integrated tax / IGST). The IGST model is a unique contribution of India in the field of VAT. The IGST Model envisages that Centre would levy IGST (Integrated Goods and Service Tax) which would be CGST plus SGST on all inter-State supply of goods or services or both. The inter-State supplier will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respect

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ter, motor vehicles is imposed to compensate States for any revenue loss on account of implementation of GST. The list of goods and services in case of which reverse charge would be applicable has also been notified.
10.4 Compensation to States: The Goods and Services Tax (Compensation to States) Act, 2017 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the revenue to be protected. The growth rate of revenue for a State during the five-year period is assumed be 14% per annum. The base year tax revenue consists of the states' tax revenues from:
(i) State Value Added Tax (VAT),
(ii) central sales tax,
(iii) entry tax, octroi

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ified e-way bill rules for intra-State supplies last being NCT of Delhi where it was introduced w.e.f. 16.06.2018. New features in the e-way bill system have been introduced such as the auto calculation of distance based on PIN codes for the generation of e-way bill and blocking the generation of multiple e-way bills against one invoice.
10.6 Anti-Profiteering Mechanism: Implementation of GST in many countries was coupled with increase in inflation and the prices of the commodities. This happened in spite of the availability of the tax credit. This was happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices.
10.6.1 National Anti-profiteering Authority (NAPA) has been constituted under GST by the Central Government to examine the complaints of non-passing the

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turnover for exemption from registration and payment of GST for the suppliers of goods would be ₹ 40 lakhs and ₹ 20 lakhs (in case of States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) with effect from 01.04.2019.
Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be ₹ 20 lakhs and ₹ 10 lakhs (in case of States of Manipur, Mizoram, Nagaland and Tripura).
A common threshold exemption applies to both CGST and SGST. The benefit of threshold exemption, however, is not available in inter-State supplies of goods.
10.9 Composition Scheme: Composition scheme has been formulated for small businessmen being supplier of goods and supplier of restaurant services. Under the scheme, person with turnover up to ₹ 1.5 crore (₹ 75 lakhs in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura a

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tilized in the following manner:
a) ITC of CGST allowed for payment of CGST & IGST in that order;
b) ITC of SGST allowed for payment of SGST & IGST in that order;
c) ITC of UTGST allowed for payment of UTGST & IGST in that order;
d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order.
ITC of CGST cannot be used for payment of SGST/UTGST and vice versa. It has been further provided that IGST balances shall be exhausted for payment of IGST, CGST or SGST, as the case may be, before utilization of CGST or SGST.
10.12 Settlement of Government Accounts: Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly, the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The tr

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e. Refund of unutilized ITC also available in zero rated supplies and inverted tax structure.
10.16 Tax Collection at Source: Obligation on electronic commerce operators to collect 'tax at source', at such rate not exceeding two per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. The provision for TCS has been operationalized w.e.f. 01st October, 2018.
10.17 Self-assessment: Self-assessment of the taxes payable by the registered person shall be the norm. Audit of registered persons shall be conducted on selective basis. Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raisi

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ime.
10.21 Subsuming of taxes, duties etc.: Among the taxes and duties levied and collected by the Union, Central Excise duty, Duties of Excise (Medicinal and Toilet Preparations), Additional Duties of Excise (Goods of Special Importance), Additional Duties of Excise (Textiles and Textile Products), Additional Duties of Customs (commonly known as CVD), Special Additional Duty of Customs (SAD), Service Tax and cesses and surcharges insofar as they related to supply of goods or services were subsumed. As far as taxes levied and collected by States are concerned, State VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax, Entertainment Tax (except those levied by the local bodies), Taxes on advertisements, Taxes on lotteries, betting and gambling, cesses and surcharges insofar as they related to supply of goods or services were subsumed.
11. GST LEGISLATIONS:
11.1. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act were passed by the Parliament a

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then, 178 notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. 19, 34 and 2 notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further, 87, 90, 87 and 9 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively.
Similar notifications have been issued by all the States under the respective SGST Act. Apart from the notifications, 106 circulars, 18 orders and 13 Removal of Difficulty Orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc.
12. ROLE OF CBIC:
12.1 CBIC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, which will be exclusive domain of the Centre. This apart, the CBIC has prepared itself for meetin

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C and Commercial Tax officers of State Governments.
12.3 CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also continue to handle the work relating to levy and collection of customs duties.
12.4 Director General of Anti-profiteering, CBIC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority.
12.5 CBIC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implementation challenges faced by the taxpayer and act as an active interface between the taxpayer and the Government.
13. GOODS & SERVICES TAX NETWORK:
13.1 Goods and Services Tax Network (GSTN) has been set up by t

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10%. The GST Council in its 27th meeting held on 04.05.2018 has approved the change in shareholding pattern of GSTN. Considering the nature of 'state' function' performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-Governmental institutions in GSTN amounting to ₹ 5.1 crore, equally by the Centre and the State Governments.
13.3 The design of GST systems is based on role based access. The taxpayer can access his own data through identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per GST law, can access the data. Data can be accessed by audit authorities as per law. No other entity can have any access to data available with GSTN.
14. GST: A GAME CHANGER FOR INDIAN ECONOMY:
14.1 GST will have a multiplier effect on the economy with benefits accruing to various sectors as discussed below.

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n one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover up to ₹ 1.5 crore (₹ 75 lakhs in certain cases) in case of supplier of goods and restaurant services and ₹ 50 lakhs in case of supplier of services. With the creation of a seamless national market across the country, small enterprises will have an opportunity to expand their national footprint with minimal investment.
14.4 Benefits to agriculture and Industry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture.
14.5 Benefits for common consumers: With

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it will help in poverty eradication by generating more employment and more financial resources. More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST & SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries. This will create India as a “Manufacturing hub”.
14.7 Ease of Doing Business: Simpler tax regime with fewer exemptions along with reduction in multiplicity of taxes that are at present governing our indirect tax

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ay, 2019
1.
No. of transited (migrated) taxpayers
66,25,077
2.
Total No. of new applications received for registration
81,37,357
3.
No. of applications approved
69,18,483
4.
No. of applications rejected
11,76,103
5.
Total No. of taxpayers; new + migrated (1 + 3)
1,35,43,560
6.
No. of taxpayers who have opted for composition scheme
17,74,379
7.
No. of GSTR-3B returns filed for July, 2017
65,86,727
8.
No. of GSTR-3B returns filed for August, 2017
71,75,392
9.
No. of GSTR-3B returns filed for September, 2017
75,24,269
10.
No. of GSTR-3B returns filed for October, 2017
72,83,228
11.
No. of GSTR-3B returns filed for November, 2017
73,77,087
12.
No. of GSTR-3B returns filed for December, 2017
74,64,274
13.
No. of GSTR-3B returns filed for January, 2018
75,82,741
14.
No. of GSTR-3B returns filed for February, 2018
77,08,443
15.
No. of GSTR-3B returns filed for March, 2018
78,19,455
16.
No. of GSTR-3B returns filed f

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8
32.
No. of GSTR 1 returns filed for October, 2017
26,36,916
33.
No. of GSTR 1 returns filed for November, 2017
26,78,601
34.
No. of GSTR 1 returns filed for December, 2017
70,15,312
35.
No. of GSTR 1 returns filed for January, 2018
26,87,919
36.
No. of GSTR 1 returns filed for February, 2018
26,98,298
37.
No. of GSTR 1 returns filed for March, 2018
72,17,993
38.
No. of GSTR 1 returns filed for April, 2018
28,46,898
39.
No. of GSTR 1 returns filed for May, 2018
28,75,225
40.
No. of GSTR 1 returns filed for June, 2018
74,53,643
41.
No. of GSTR 1 returns filed for July, 2018
29,06,423
42.
No. of GSTR 1 returns filed for August, 2018
29,06,785
43.
No. of GSTR 1 returns filed for September, 2018
75,74,154
44.
No. of GSTR 1 returns filed for October, 2018
28,95,500
45.
No. of GSTR 1 returns filed for November, 2018
28,68,407
46.
No. of GSTR 1 returns filed for December, 2018
74,14,292
47.
No. of GSTR 1 returns fi

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633
3.
September, 17
94,064
4.
October, 17
93,333
5.
November, 17
83,780
6.
December, 17
84,314
7.
January, 18
89,825
8.
February, 18
85,962
9.
March, 18
92,167
10.
April, 18
1,03,458
11.
May, 18
94,016
12.
June, 18
95,610
13.
July, 18
96,483
14.
August, 18
93,960
15.
September, 18
94,442
16.
October, 18
1,00,710
17.
November,
18 97,637
18.
December, 18
94,726
19.
January, 19
1,02,503
20.
February, 19
97,247
21.
March, 19
1,06,577
22.
April, 19
1,13,865
23.
May, 19
1,00,289
24.
Total
21,32,173
16. CHALLENGES & FUTURE AHEAD:
16.1 Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity with the new regime and IT systems, legal challenges, return filing and reconcil

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e been generated till 31.05.2019.
16.3 NAPA has initiated investigation into various complaints of anti-profiteering and has passed orders in some cases to protect consumer interest.
16.4 To expedite sanction of refund, electronic filing of refunds, along with all supporting documents/invoices, has been enabled on the common portal. Clarificatory Circulars and notifications have been issued to guide field formations of CBIC and States in this regard. The government has put in place an IT grievance redressal mechanism to address the difficulties faced by taxpayers owing to technical glitches on the GST portal.
16.5 The introduction of GST is truly a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime. It will integrate India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will

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GST Council has to decide on levy of GST on Petroleum Products
GST
Dated:- 26-6-2019

Article 279A (5) of the Constitution provides that Goods and Services Tax Council shall recommend the date on which goods and services tax shall be levied on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel. Thus while, petroleum products are constitutionally included under GST, the date on which GST shall be levied on such goods, shall be as per the decision

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Implementation of GST
GST
Dated:- 24-6-2019

The implementation of GST has led to the removal of cascading effect of taxes in the economy as well as promoting free movement of goods across States, thereby creating “one nation, one market”. A simplified tax regime has resulted in reduced compliance burden for taxpayers and promoting ease of doing business in the country.
Return filing is a continuous process and technical glitches and system related issues are addressed by the Goods and Services Tax Network (GSTN) to ensure smooth filing. Also, taxpayers committed errors while filing returns due to lack of familiarity with the new system. The data regarding the number of returns filed until 17.06.2019 is as follows:
Return Fo

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03.2019.
* Based on the feedback received from taxpayers, Goods and Service Tax Network (GSTN) regularly updates the User Interface for filing of returns so as to improve user experience. For example, a Questionnaire for filing FORM GSTR-3B has been introduced to avoid errors by taxpayers. Also, NIL returns can be filed with just one click.
* An IT-Grievance Redressal Committee has been put in place to address the difficulties faced by taxpayers owing to technical glitches on the GST portal. It has the mandate to approve and recommend to the GSTN the steps to be taken to redress the grievance and provide relief to taxpayers.
* Awareness campaigns such as seminars, workshops, open houses, use of social media, advertisements in print an

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GST EVASION
GST
Dated:- 24-6-2019

The Government proposes to integrate a FASTag Bank Mechanism with e-way bill and Logistic Data Services to track movement of goods and check GST evasion. The Government is contemplating integration of E-Way Bill mechanism of GST with FASTag System of National Highway Authority of India (NHAI). The aspect of Logistic Databank integration with FASTag System is being examined.
A Committee of Officers comprising of officers from Central Government, State Governments, GSTN (Goods and Services Tax Network), NIC (National Informatics Centre), GST Council, to examine the issue of use of RFID data for strengthening of E-Way Bill mechanism under GST, was formed by GST Council. The representatives of NH

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GST Council decision relating to changes in law and procedure
GST
Dated:- 21-6-2019

The 35th GST Council Meeting was held here today under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. This was the first meeting of the Council after the swearing in of the new Government. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Revenue Secretary Shri Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The GST Council recommended the following changes related to law and procedure:
In order to give ample opportunity to taxpayers as well as the system to adapt, the new return system to be introduced in a pha

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t may be noted that invoices etc. can be uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019 onwards. FORM GST ANX-2 may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX-2;
* From October, 2019, small taxpayers to stop filing FORM GSTR-3B and to start filing FORM GST PMT-08. They will file their first FORM GST-RET-01 for the quarter October, 2019 to December, 2019 in January, 2020;
* From January, 2020 onwards, FORM GSTR-3B to be completely phased out
On account of difficulties being faced by taxpayers in furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C, the due date for furnishing thes

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GST Council decisions on rate changes on supply of good and services
GST
Dated:- 21-6-2019

The 35th GST Council Meeting was held here today under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. This was the first meeting of the Council after the swearing in of the new Government. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Revenue Secretary Shri Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The Council has recommended following GST rate related changes on supply of goods and services.
Electric Vehicles
On issues relating to GST concessions on electric vehicle, charger and hiring of elec

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35th GST Council Meeting – Council takes various important decisions including extension of the tenure of National Anti-Profiteering Authority by 2 years among others
GST
Dated:- 21-6-2019

The 35th GST Council Meeting was the First Meeting of the Council after the swearing in of the new Government. The Meeting took place in a cordial and professional manner.
At the start of the Meeting, the Council passed a resolution acknowledging the stellar role played by Shri Arun Jaitley, the former Chairperson of GST Council and expressed its gratitude and appreciation for the exemplary contribution made by him in making the GST Council a shining example of co-operative federalism that it has become today. The Council also thanked the o

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The Directorate General of GST Intelligence Hqrs. arrests one person in connection with the taking by two firms ITC fraudulently to the tune of more than 16 Crore
GST
Dated:- 21-6-2019

The Directorate General of GST Intelligence Hqrs. (DGGI Hqrs.) has arrested one person, namely, Sh. Munish Kumar, Partner of M/s Sushil Kumar Munish Kumar, Hisar, Haryana and controller of M/s Sushil Kumar Munish Kumar & Co., Ahmedabad. Both of the said firms had taken ITC fraudulently to the tune of more than ₹ 16 Crore involving invoice value of ₹ 322 Crore on the strength of invoices issued by non-existent fake firms. The said two firms thereafter, passed on such fraudulently taken ITC to some of the well established Cotton Yarn S

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Introduction of manual checks in IGST refunds aimed at preventing unscrupulous exporters from defrauding the exchequer
GST
Dated:- 20-6-2019

Introduction of manual checks in IGST refunds aimed at preventing unscrupulous exporters from defrauding the exchequer
CBIC would assure all genuine exporters that they would continue to get their IGST refunds in a timely manner in a fully automated environment
Some newspapers have today highlighted a perceived set-back to the automated process of refunds for exporters under GST on account of the introduction of manual checks to curb large scale frauds in IGST refunds. These news items regrettably create a misleading impression that genuine exporters would suffer on account of the newly

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Extend GST compensation beyond 2022: Karnataka CM
GST
Dated:- 15-6-2019

New Delhi, Jun 15 (PTI) – Karnataka Chief Minister H D Kumaraswamy Saturday asked the Centre to extend GST compensation beyond five years, saying that the state will face "severe financial crunch" after the recompense period ends in 2022.
He was speaking at the first meeting of the Governing Council of Niti Aayog chaired by Prime Minister Narendra Modi here.
While implementing the Goods and Services Tax (GST), the Centre had assured the states to compensate them for loss of their revenue for five years till 2022.
"While the revenue gap is being bridged by the assured compensation till 2022, the state has limited scope to mobilise addition

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fter Rajasthan, the Chief Minister said the state "faces serious drinking water challenges. Ground water table is depleting and ground water sources are getting contaminated."
He urged the prime minister to significantly increase the allocation to rural drinking water sector.
Karnataka is investing ₹ 2,800 crore during 2019-20 for rural drinking water, of which the centre's share is only ₹ 400 crore, he added.
The chief minister also urged the Centre to approve ₹ 2,064 crore relief from the National Disaster Relief Fund (NDRF) for damage to crops in the 2018-19 rabi season.
He also urged the prime minister to release pending ₹ 1,500 crore reimbursement under the MGNREGA scheme and raise the fund al

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Transition plan to the new GST Return
GST
Dated:- 11-6-2019

The GST Council in its 31st meeting decided that a new GST return system will be introduced to facilitate taxpayers. In order to ease transition to the new return system, a transition plan has been worked out. The details of the indicative transition plan are as follows: –
* In May, 2019 a prototype of the offline tool has already been shared on the common portal to give the look and feel of the tool to the users. The look and feel of the offline tool would be same as that of the online portal. Taxpayers may be aware that there are three main components to the new return – one main return (FORM GST RET-1) and two annexures (FORM GST ANX-1 and FORM GST ANX-2).
* Fr

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at the back end on the tax liability or input tax credit of the taxpayer. In this period, taxpayers shall continue to fulfil their compliances by filing FORM GSTR-1 and FORM GSTR-3B i.e. taxpayers would continue to file their outward supply details in FORM GSTR-1 on monthly / quarterly basis and return in FORM GSTR-3B on monthly basis. Non-filing of these returns shall attract penal provisions under the GST Act.
* From October, 2019 onwards, FORM GST ANX-1 shall be made compulsory and FORM GSTR-1 would be replaced by FORM GST ANX-1. The large taxpayers (i.e. those taxpayers whose aggregate annual turnover in the previous financial year was more than ₹ 5 Crore) would upload their monthly FORM GST ANX-1 from October, 2019 onwards. Ho

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GST – an update as on 01-06-2019
GST
Dated:- 7-6-2019

Download PDF
=============
Document 1
Pradhan Mantri
Kaushal Vikas Yojana,
(PMKVY)
GST
Start-Up
India
Port-led
Development
GST – An Update
(As on 1st June, 2019)
Make
in India
Digital
India
Pradhan Mantri
Mudra Yojana
(
PMMY
)
GST
NATION
TAX
MARKET
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GOVERNMENT
OF INDIA
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• दà¥â€¡Ã Â¤Â¶Ã Â¤Â¸Ã Â¥â€¡Ã Â¤ÂµÃ Â¤Â¾Ã Â¤Â°Ã Â¥ÂÃ Â¤Â¥ à¤â€¢Ã Â¤Â°Ã Â¤Â¸Ã Â¤â€šà¤šà¤¯
This presentation is for education purposes only and
holds no legal validity
The Journey to GST
In the year 2000, the then
Prime Minister introduced
the concept of G

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d to extend GST to J&K
True Economic Integration of India
01st February,
2019
Amendments to CGST, IGST,
UTGST and Compensation to
State Acts enacted
Notifying and amending
rules
Dealing with IT related
issues
Revision of Rates
Clarification and
communication with
taxpayers
GST Law from a Constitutional Perspective (1/2)
Article 366(12A)
Sl No Definition Article
1.
Goods
2.
Service
3.
State
Definition of GST
GST
INATION
TAX
MARKET
“Goods and services tax” means any tax on supply of goods, or services or
both except taxes on the supply of the alcoholic liquor for human
consumption
366(12)
366 (26A)
Definition
Includes all materials, commodities, and articles [Pre Existing Definition]
Anything other than goods [Introduced vide 101st Constitutional Amendment
Act]
366(26B) With reference to articles 246A, 268, 269,269A and Article 279A includes a
Union territory with Legislature. [Introduced vide 101st Constitutional
Amendment Act]
“Goods and S

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x Structure in India
Central Taxes
State Taxes
State VAT / Sales Tax
Central Excise duty
Additional duties of excise
under
Purchase Tax
Central Sales Tax
6
GST
INATION
TAX
MARKET
Excise duty levied
Medicinal & Toilet Preparation
Act
Additional duties of customs
(CVD & SAD)
Service Tax
Surcharges & Cesses
Entertainment Tax (other than those
levied by local bodies)
Luxury Tax
Entry Tax (All forms)
Taxes on lottery, betting & gambling
Surcharges & Cesses
GST
+13 Cesses
Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre
to tax sale of goods and States to tax provision of services)
Central Taxes
Tax
Administrations
CEX/ST Act & Rules
Procedures
Multiple State Taxes
Multiple State Tax
Administrations
Multiple Acts & Rules
Multiple procedures
Pre-GST Indirect tax structure in India
Single Tax-GST
Single Tax
Administration
Uniform law
Computerized
uniform procedures
Customs
Duty
Central
Sales Tax
Cen

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age and Centre – 1/3 weightage
Council to make recommendations on everything related to GST including laws,
rules and rates etc.
10
GST Council Decisions
GST
INATION
TAX
MARKET
=
11
GST
INATION
TAX
MARKET
Implementation status of GST Council Decisions
â–  The Council has met for 34 times and no occasion has arisen so far that required voting to decide any
matter.
Till its 34th meeting, GST Council has taken 1064 decisions which include 219 decisions taken by the
GST Implementation Council (GIC).
✓ 1006 decisions have been implemented and only a total of 58 decisions (of which 39 were unique
issues) were under implementation.
✓ In other words, 94.5% of the decisions of the GST Council have already been implemented, which is
a significant achievement given the complicated nature and wide area of subjects/issues involved and
the fact that all decisions were taken unanimously.
12
NATION
TAX
Registration and Threshold (1/19)
GST
MARKET
â– 

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n territory.
Mandatory registration is required for only those e-commerce operators who are required to collect tax at
source.
Registration to remain temporarily suspended while cancellation of registration is under process, so that the
taxpayer is relieved of continued compliance under the law.
â–  Revocation of cancellation of those registration, which were cancelled till 31.03.2019, has been allowed. The
application for revocation can be filed till 22.07.2019.
13
Migration (2/19)
GST
INATION
TAX
MARKET
â–  One more window for completion of migration process permitted. Due date for the taxpayers who
did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till
31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer was extended till
31.01.2019.
â–  Due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February,
2019/quarters July, 2017 to December, 2018 by such taxpayers wa

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e Annual Return with
quarterly payment of taxes (along with a simple declaration).
A Composition Scheme made available for Suppliers of Services (to those who are not eligible for the
presently available Composition Scheme) with a tax rate of 6% (3% CGST +3% SGST) having an
Annual Turnover in the preceding Financial Year up to Rs. 50 lakhs. They would be liable to file one
Annual Return with quarterly payment of taxes (along with a Simple declaration).
15
GST
INATION
TAX
MARKET
Tax Administration (4/19)
â–  In order to ensure single interface, all administrative control over 90% of taxpayers
having turnover below Rs. 1.5 crore would vest with State tax administration and over
10% with the Central tax administration. Further, all administrative control over
taxpayers having turnover above Rs.1.5 crore shall be divided equally in the ratio of
50% each for the Central and State tax administration.
â–  Powers under the IGST Act shall also be cross-empowered on the

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equired to be
purchased by a promoter for construction of a project as prescribed in notification No. 11/2017- Central Tax
(Rate) dated 28.06.2017,
✓ cement which constitute the shortfall from the minimum value of goods or services or both required to be
purchased by a promoter for construction of project as prescribed in notification No. 11/2017- Central Tax (Rate),
and
capital goods supplied to a promoter for construction of a project on which tax is payable or paid at the rate
prescribed in notification No. 11/2017- Central Tax (Rate).
Earlier, the reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-
section (4) of section 5 of the IGST Act, 2017 was kept under suspension till 30.09.2019.
17
INATION
TAX
Payment of Tax (6/19)
GST
MARKET
â–  There shall be no requirement on payment of tax on advances received for supply of
goods by all taxpayers.
â–  A Group of Ministers constituted for promoting digital payme

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upporting documents/invoices in
relation to a claim for refund in FORM GST
RFD-01A are being uploaded electronically on
the common portal at the time of filing of the
refund application itself, thereby obviating the
need for a taxpayer to physically visit a tax
office for submission of a refund application.
Completely electronic refund module has also
been finalized and will be deployed soon.
Export
GST
(7/19)
â–  E-Wallet Scheme shall be introduced for
exporters soon and till then relief for
exporters shall be given in form of broadly
existing practice.
Supply of services to qualify as exports,
even if payment is received in Indian
Rupees, where permitted by the RBI.
19
GST
INATION
TAX
Return and Late Fees (8/19)
MARKET
â–  All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.
Taxpayers with turnover up to Rs. 1.5 Cr are required to file information in FORM GSTR-1 on a
quarterly basis.
✓ Other taxpayers would have

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system has been finalized and the new system would be introduced in a phased manner.
â–  New return system is simple with two main annexures. One for reporting details of outward
supplies (FORM GST ANX-1) and one for availing input tax credit (FORM GST ANX-2)
based on invoices, etc. uploaded by the supplier.
â–  Invoices can be uploaded continuously by the supplier and can be continuously viewed and
accepted by the recipient for availing input tax credit. This process would ensure that very large
part of the return is auto-populated based on the invoices uploaded by the buyer and the
supplier. Simply put, the process would be “UPLOAD – LOCK-PAY” for most tax payers.
Taxpayers would have the facility to create his profile based on nature of supplies made and
received. The information which a taxpayer would be shown and would be required to fill in the
return would depend on his profile.
NATION
TAX
New Return System (Contd.)
GST
MARKET
â–ª NIL return filers (n

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-way (electronic way) bill is a monumental shift from the earlier
“Departmental Policing Model” to a “Self-Declaration Model”.
â–  New provisions in the e-way bill system have been introduced such as the auto calculation of
distance based on PIN codes for the generation of e-way bill and blocking the generation of
multiple e-way bills on one invoice.
â–  The generation of e-way bill would be barred if a supplier or recipient does not file GST returns
for 2 consecutive tax periods. This will be made applicable from 21.06.2019.
22
22
23
ITC
TDS/TCS
(11/19)
GST
INATION
TAX
MARKET
â–  ITC in relation to invoices issued by the
supplier during FY 2017-18 may be
availed by the recipient till the due date for
furnishing of FORM GSTR-3B for the
month of March, 2019, subject to specified
conditions.
â–  Due date for submitting FORM GST ITC-
04 for the period July 2017 to March 2019
was extended till 30.06.2019.
â–ª TDS/TCS
provisions implement

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tute of Public Finance and
Planning), who would study and share the findings with GoM. The GoM in turn would
give its recommendation to the GST Council.
24
14
NATION
TAX
GST
â—‰
25
Real Estate (13/19)
MARKET
GST shall be levied at effective rate of 5% on residential properties outside affordable segment and 1% on affordable housing
properties.
Definition of affordable housing: A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and
60 sqm
in metropolitan cities having value up to Rs. 45 lakhs (both for metropolitan and non-metropolitan cities). Metropolitan
Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad),
Hyderabad, Kolkata and Mumbai (whole of MMR).
GST exemption on TDR/ JDA, long term lease (premium), FSI: Intermediate tax on development right, such as TDR, JDA,
lease (premium), FSI shall be exempted only for such residential property on which GST is payable.

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01.2019 approved levy of Cess on Intra-State Supply of
Goods and Services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2
years.
Kerala Government has, accordingly, decided to levy one per cent. 'Kerala Flood Cess' on value of intra-
state supply of goods by taxable person to an unregistered person in respect of supplies specified in
TABLE under sub-clause (2) of clause 14 of the Kerala Finance Bill, 2019.
The said flood cess shall be levied 01.07.2019.
Kerala government has also decided to allow local bodies to collect entertainment tax on movie tickets up
to 10 per cent.
27
Recent Law amendments w.e.f. 01.02.2019 (15/19)
GST
INATION
TAX
MARKET
â–  Scope of input tax credit has been widened, and it would now be made available in respect of
the following:
Most of the activities or transactions specified in Schedule III
✓ Motor vehicles for transportation of persons having seating capacity of more than thirteen
(including d

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erritory to another place in the non-
taxable territory without such goods entering into India;
Supply of warehoused goods to any person before clearance for home consumption;
Supply of goods in case of high sea sales.
Registered persons may issue consolidated credit/debit notes in respect of multiple invoices
issued in a Financial Year.
Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the
Appellate Tribunal capped at Rs. 25 Cr and Rs. 50 Cr respectively.
Recovery can be made from distinct persons, even if present in different State/Union territories.
29
INATION
TAX
GST
MARKET
Recent Law amendments w.e.f. 01.02.2019 (Contd.) (17/19)
Amount of IGST not apportioned to the Centre or the States/UTs may, for the time being, on the
recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central
Government and fifty per cent. to the State Governments or the Union territories, as the case
may be, on ad-hoc basi

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50% of the GST paid will be refunded to CSD (Defense Canteens).
GST
MARKET
Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central
Government for handling their refund related applications.
Rate of interest on delayed payments and delayed refund has been recommended.
â–  Supply from GTA to unregistered persons has been exempted from tax.
âËœ
Group of Ministers has been constituted to examine the GST Rate Structure on Lotteries.
â–  Group of Ministers has been constituted to look into the issues being faced by MSMEs and to provide
solutions for the same.
31
INATION
TAX
Other decisions (19/19)
GST
MARKET
In principle approval has been given for creation of a Centralized Appellate Authority for Advance Ruling
(AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling
Authorities on the same issue. This would be implemented once the law is amended.
Existing tax incentive sche

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anipur, Mizoram, Nagaland and Tripura).
Registration mandatory for suppliers of goods only if the turnover exceeds Rs.40 lakhs (Rs.20
lakhs in case of States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland,
Puducherry, Sikkim, Telangana, Tripura and Uttarakhand)
Main Features of the GST Act (2/5)
Option of Voluntary Registration
GST
INATION
TAX
MARKET
Composition threshold shall be Rs. 150 lakhs, special category States of Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand
have the said limit as Rs. 75 lakhs
✓ Composition scheme shall not be available to inter-State suppliers, and specified
category of manufacturers
Deemed Registration in three working days
Input Tax Credit available on taxes paid on all procurements (except few specified
items)
33
INATION
GST
TAX
MARKET
Main Features of the GST Act (3/5)
Set of auto-populated Monthly returns and Annual Return
Composition taxpayers to file Quarterly retur

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transitional provisions for smooth transition of existing tax payers to
GST regime
Special procedures for job work
36
System of GST Compliance Rating
Anti-Profiteering provision – National Anti-Profiteering Authority already set up
–
✓ Standing Committee on Anti-Profiteering already set up
✓ State level Screening Committee already set up
Benefits of GST (1/2)
37
Reduction in Cascading of Taxes
1
2
Overall Reduction in Prices
Decrease in
Inflation
3 Common National Market
4
Benefits to Small Taxpayers
5 Self-Regulating Tax System
6 Non-Intrusive Electronic Tax System
Ease of Doing
Business
Decrease in “Black”
Transactions
GST
INATION
TAX
MARKET
Benefits of GST (2/2)
7 Simplified Tax Regime
8 Reduction in Multiplicity of Taxes
More informed
consumer
38
9 Consumption Based Tax
Abolition of CST
10
Poorer States
to Gain
11 Exports to be Zero Rated
12 Protection of Domestic Ind. – IGST
Make in India
GST
INATION
TAX

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ition of entire 51 per cent of equity
held by non-Governmental institutions in GSTN amounting to Rs. 5.1 Cr, equally by
the Centre and the State Governments
40
40
Goods and Service Tax Network (3/4)
Harmonization of Business Processes and
Formats
GST
INATION
TAX
MARKET
Autonomy of back-end systems of States
and Centre
Common & Shared
IT Infrastructure
Core Services
–
Registration
–
Returns
Payments
Helpdesk support
Information on Inter-State supply and cross-
credit utilization
Analytics
IGST Settlement
Front-end
Non-Statutory Functions
IT
Interfaces
Statutory Functions
Centre/States
Tax IT Systems
•
Approval of Registration
•
•
•
•
•
Assessment
Refunds
Audit and Enforcement
Adjudication
Internal workflows to support above
functions
Recovery
Analytics and BI
Back-end
Goods and Service Tax Network (4/4)
Taxpayer
Offline Utility Taxpayer
Taxpayer
Taxpayer
Desktop
Mobile
Browser
Desktop Browser

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both Centre & States
Outreach programs for Trade and Industry
Director General of Anti- Profiteering, CBIC has been mandated to conduct detailed
enquiry on anti-profiteering cases
44
Pradhan Mantri
Kaushal Vikas Yojana,
(PMKVY)
GST
Start-Up
India
www.cbic.gov.in led
www.cbic-gst.gov.inent
CBIC Help Desk
Toll Free: 1800 1200 232
Email: cbecmitra.helpdesk@icegate.gov.in
Make
in India
GST
NATION
TAX
MARKET
Digital
India
Pradhan Mantri
Mudra Yojana
(
PMMY
)
GSTN Help Desk
Toll Free: 0124-4688999
Email: helpdesk@gst.gov.in
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Grant of Commendation Certificate on the occasion of GST Day, 2019
GST
Dated:- 4-6-2019

Directorate General of Goods & Services Tax (DGGST)
5TH Floor, Telephone Exchange (MTNL) Building,
8, Bhikaji Cama Place, New Delhi-110066
Ph. 011-21600091-94, e-mail id:
F. No. 1(12)/DGGST/Admn/GST-Day/34/2019/1712-94
Dated 04 June 2019
Sub: reg.
Sir/Madam,
It has been decided to award Commendation Certificates to the selected officers at the all India Level in different grades of officers, who, by their innovative ideas/continued devotion and commitment to duty, have contributed in promoting excellence in the fields of GST administration. The objective is to give due recognition to officers who may have contributed significantly in diverse areas such as trade facilitation, automation, enforcement, audit, infrastructure development, human resource development, personal management, secretarial work, legislation, policy making, legal, judicial, and training, which often remain

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You may also ensure that the abstract showing the APAR grading of the officer for the last five years duly certified by the sponsoring authority accompany the proposal. The vigilance clearance for the last five years should also be furnished along with the proposal. Care should be taken to send proposals of only such officers whose record of integrity is absolutely beyond doubt. At the time of sponsoring the names itself, the sponsoring authority should satisfy that the officer is really a deserving candidate for the award and also enjoys an excellent general reputation.
4. In any case, names of those officers who have already been awarded Presidential Award/ Commendation Certificate/ WCO Certificate of appreciation by CBIC should not be forwarded.
5. it is also requested that wide publicity may be given to this letter to encourage deserving officers in different grades i.e. Group 'A', 'B', 'C' to apply for the grant of Commendation Certificate.
6. The propos

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post)
7.
If Direct Recruitment then Batch
8.
Present Post
9.
Present Place of Posting:
CC Zone/ Commissionerate/ Division/ Range
Directorate General/ Zonal Units/ Regional Units
10.
Date of promotion in the present grade
11.
Present Pay Scale & Basic Pay
12.
History of posting with Designation and period
13.
APAR gradings for the last five years certified by an officer not below the rank of Commissioner
14.
Significant contribution made by the official in promoting excellence in the field of GST, Central Excise, Service Tax and related matters.
15.
Commendations/ Appreciation certificates received by the official.
16.
Any other distinction/ Achievement
17.
Details of enquiry, if any, pending or contemplated against the official. Vigilance Clearance Certificate may be annexed.
18.
Remarks of the sponsoring authority justifying the nomination for commendation certificate
Signature of Sponsoring Authority
Name
Designation
19.
Remarks o

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Clarifications on filing of Annual Return (FORM GSTR-9)
GST
Dated:- 4-6-2019

The last date for filing of Annual return in FORM GSTR-9 is 30th June 2019. The trade and industry have raised certain queries with respect to filing of this Annual return which are being clarified as follows:
a. Information contained in FORM GSTR-2A as on 01.05.2019 shall be auto-populated in Table 8A of FORM GSTR-9.
b. Input Tax Credit on inward supplies shall be declared from April 2018 to March 2019 in Table 8C of FORM GSTR-9.
c. Particulars of the transactions for FY 2017-18 declared in returns between April 2018 to March 2019 shall be declared in Pt. V of FORM GSTR-9. Such particulars may contain details of amendments furnished in Table 10

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V and the gap between the “tax payable” and “Paid through cash” column of FORM GSTR-9 shall be paid through FORM DRC-03.
f. Many taxpayers have reported a mismatch between auto-populated data and the actual entry in their books of accounts or returns. One common challenge reported by taxpayer is in Table 4 of FORM GSTR-9 where details may have been missed in FORM GSTR-1 but tax was already paid in FORM GSTR-3B and therefore taxpayers see a mismatch between auto-populated data and data in FORM GSTR-3B. It may be noted that auto-population is a functionality provided to taxpayers for facilitation purposes, taxpayers shall report the data as per their books of account or returns filed during the financial year.
g. Many taxpayers have repre

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GST Revenue collection for May, 2019
GST
Dated:- 1-6-2019

GST Revenue collection for May, 2019
₹ 1,00,289 crore total gross GST revenue collected ;a growth of 6.67% over the revenue in the same month last year
The total gross GST revenue collected in the month of May, 2019 is Rs 1,00,289 crore of which CGST is Rs 17,811 crore, SGST is Rs 24,462 crore, IGST is Rs 49,891 crore (including Rs 24,875 crore collected on imports) and Cess is Rs 8,125 crore (including Rs 953 crore

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Top Management of M/s Manpasand Beverages Ltd, Savli, Vadodara arrested in fake invoice GST fraud
GST
Dated:- 25-5-2019

Office of the Commissioner
Central GST & Customs, Vadodara-II
Arkee Garba Ground, Nr. Telephone Exchange, Subhanpura
Vadodara – 390023 (GUJARAT)
Telephone No. 0265-2388241, Fax no. 0265-2388243
PRESS RELEASE
Top Management of M/s Manpasand Beverages Ltd, Savli, Vadodara arrested in fake invoice GST fraud.
Multi locational searches were conducted on various

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FAQs on real estate – GST
GST
Dated:- 15-5-2019

F. No. 354/32/2019-TRU
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
Dated the 7th May, 2019, New Delhi
Subject: FAQs on real estate- reg.
A number of issues have been raised regarding the new GST rate structure notified for real estate sector effective from 01-04-2019. A compilation of Frequently Asked Questions (FAQs) is presented below. The answers to the FAQs have been given in simple language for guidance and easy understanding of all stakeholders in the real estate sector. They do not have force of law. In case of conflict, the gazette notifications, which have legal force, shall have precedence.
S. No.
Question
Answer
1.
What are the rates of GST applicable on construction of residential apartments?
With effect from 01-04-2019, effective rate of GST applicable on construction of residential apartments by promoters in a real estate project are as under:
Description
Eff

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ich commences on or after 01-04-2019, or in an ongoing project in respect of which the promoter has opted for new rate of 1% (effective from 01-04-2019) having carpet area upto 60 square meter in metropolitan cities and 90 square meter in cities or towns other than metropolitan cities and the gross amount charged for which, by the builder is not more than forty five lakhs rupees. [Cities or towns in the notification shall include all areas other than metropolitan city as defined, such as villages.]
In an ongoing project in respect of which the promoter has opted for new rates, the term also includes apartments being constructed under the specified housing schemes of Central or State Governments.
[Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) with their geographical limits prescribed by Government.]
3.
What is an on-going project?
A project which meets t

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es a promoter or a builder has option to pay tax at old rates of 8% & 12% with ITC?
Yes, but such an option is available in the case of an ongoing project. In case of such a project, the promoter or builder has option to pay GST at old effective rate of 8% and 12% with ITC.
To continue with the old rates, the promoter/ builder has to exercise one time option in the prescribed form and submit the same manually to the jurisdictional Commissioner by the 10th of May, 2019.
However, in case where a promoter or builder does not exercise option in the prescribed form, it shall be deemed that he has opted for new rates in respect of ongoing projects and accordingly new rate of GST i.e. 5% / 1% shall be applicable and all the provisions of new scheme including transitional provisions shall be applied.
There is no such option available in case of projects which commence on or after 01.04.2019. Construction of residential apartments in projects commencing on or after 01.04.2019 shall comp

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for old rates
12% with ITC on total consideration.
6.
What is a Residential Real Estate Project?
A “Residential Real Estate Project” means a 'Real Estate Project' in which the carpet area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the apartments in the project.
7.
What is the criteria to be used by an architect, a chartered engineer or a licensed surveyor for certifying that construction of the project has started by 31st March, 2019
Construction of a project shall be considered to have been started on or before 31st March, 2019, if the earthwork for site preparation for the project has been completed, and excavation for foundation has started on or before the 31st March, 2019.
8.
Does a promoter/ builder have to purchase all goods and services from registered suppliers only?
A promoter shall purchase at least eighty percent. of the value of input and input services, from registered suppliers. For calculating this t

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corresponding GSTR-3B etc. are required to be complied mandatorily by the Developer ?
Yes. All the specified conditions against clause (i) to (id) of Sl. No 3 of Notification No. 11/2017-CTR are mandatory.
11.
What is the rate of GST applicable on transfer of development rights, FSI and long term lease of land?
Supply of TDR or FSI or long term lease of land used for the construction of residential apartments in a project that are booked before issue of completion certificate or first occupation is exempt.
Supply of TDR or FSI or long term lease of land, on such value which is proportionate to construction of residential apartments that remain un-booked on the date of issue of completion certificate or first occupation, would attract GST at the rate of 18%, but the amount of tax shall be limited to1% or 5%of value of apartment depending upon whether the residential apartments for which such TDR or FSI is used, in the affordable residential apartment category or in other than a

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of time, the promoter should discharge its tax liability on FSI (including additional FSI).
On FSI received on or after 1.4.2019, the promoter should discharge his tax liability on FSI as under:
(i) In case of supply of FSI wherein consideration is in form of construction of commercial or residential apartments, liability to pay tax shall arise on date of issuance of Completion Certificate.
(ii) In case of supply of FSI wherein monetary consideration is paid by promoter, liability to pay tax shall arise on date of issuance of Completion Certificate only if such FSI is relatable to construction of residential apartments. However, liability to pay tax shall arise immediately if such FSI is relatable to construction of commercial apartments.
15.
At what point of time, the promoter should discharge its tax liability on supply of long term lease.
On long term lease received on or after 1.4.2019, the promoter should discharge his tax liability on long term lease as under:
In cas

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rges etc.) is exempt to the extent it is used for construction of residential apartments that are booked before issuance of completion certificate or first occupation.
Annual/ monthly rent or licence fee payable for long term lease is taxable under GST.
17.
Someone booked a flat from XYZ Developers in June, 2018. As of 31-03-2019, he had paid 40 % of the value of the flat. What shall be the GST rate applicable on the remaining portion of value of the flat?
GST on the remaining portion of the value of flat payable to the promoter on or after 01-04-2019 as per the contract between the promoter and buyer shall be payable at effective rate of 1% or 5%, subject to the condition that the builder has not exercised the option to pay tax on construction of apartments at the old rates of 12% or 18%. If the XYZ developer exercises option to continue to pay tax at old effective rate of 8% or 12% by 10th May, 2019, then GST has to be paid @ 8% or 12% on remaining portion of the value of the

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paid tax of 12% (effective) on instalments paid before 01.04.2019. I wish to get the benefit of new rate of 1% or 5%. Whether it is the builder or the buyer who has the option to pay tax at the new or old rates?
The buyer cannot exercise option to pay tax at the new or old rates. It is the builder,who has to exercise the option to pay tax on construction of apartments at the old rate of 12% latest by 10th May, 2019. If the builder doesn't exercises his option to continue to pay tax at the old rate by the said date, then the effective GST rate applicable on all your instalments payable to the builder on or after 01.04.2019 as per the contract shall be either 1% or 5%, depending on whether the apartment is an affordable or other than affordable residential apartment.
21.
In respect of supply made in an ongoing Project covered by clauses (ie) and (if) of Entry 3 of Notification No. 3/2019, CT (R), an option is required to be exercised by the Promoter in Annexure IV by 10th May 20

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2019 on which GST was paid on part consideration received at the time of booking, but cancelled after 1st April, 2019.
Developer shall be able to issue a Credit Note to the buyer as per provisions of section 34 in case of change in price or cancellation of booking provided that the amount received in excess if any, consequent to issuance of Credit Note, is refunded to the Buyer by the Developer before September following the end of the financial year. Developer shall be able to take adjustment of tax paid in respect of the amount of such Credit Note. For example, a Developer who paid GST of ₹ 1,20,000 at the rate of 12% (effectively) in respect of a gross amount of booking of ₹ 10,00,000 before 1st April, 2019 shall be entitled to take adjustment of tax of ₹ 1,20,000 upon cancellation of the said booking on or after 1st April, 2019 against other liability of GST including liability arising at the rate of 5% / 1% provided that the entire amount received from the buy

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on is required to be exercised for the entire REP or RREP. Does this mean that a Promoter can opt for old rates or new rates, as the case may be, for different projects being undertaken by him under the same entity?
Yes.The option to pay tax on construction of apartments in the ongoing projects at the effective old rates of 8% and 12% with ITC has to be exercised for each ongoingproject separately. As per RERA, 2016, project wise registration is allowed. So, the promoter may exercise different options for different ongoing projects being undertaken by him.
25.
In respect of the construction and supply of premises under specific schemes like PMAY, Housing for All (Urban), RAY etc. as mentioned in sub items (b), (c), (d), (da), (db) of item (iv) and sub items (c), (d), (da) of item (v) of Entry 3 of Notification 11/2017 – CT (R), whether the pre-existing effective rate of 8%, with ITC benefit continues to be available in case of any New Project that has commenced under any such sche

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2017- Central Tax (Rate) dated 28-06-2017. The option to pay tax on construction of apartments in the ongoing projects at the old rates of 8% with ITC has to be exercised by the promoter for ongoing project.
27.
In case where the Development rights are supplied by the Landowner to the Promoter, under an area sharing arrangement between 1st July 2017 and 31/3/19, but the allotment of constructed area in an ongoing project is made by the Promoter to the Landowner on or after 1/4/2019, whether the tax liability, if any, is required to be discharged in terms of the Notification No. 4/2018 – CT (R)?
Yes. Tax liability on service by way of transfer of development rights prior to 01-04-2019 is required to be discharged in terms of Notification No. 4/2018-CentralTax (Rate) dated 25.01.2018.
28.
Whether the GST is leviable on the output supply of Transferrable Development rights by a developer (usually evidenced by TDR Certificate issued by the authorities). If yes, under which entry an

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d regulations laid down by the Central Government, State Government or any other authority in this regard. Where occupation certificate has been issued for part (s) of the project but not for the entire project by 31-03-2019, the first occupation of the project shall not be considered to have taken place on or before 31-03-2019 and the project shall be considered on going project provided it satisfies the other requirements of the definition of the term ongoing project. Promoter shall be entitled to exercise option to pay tax @ 1%/5% (without ITC)or @ 8%/12% (with ITC) on construction of apartments in such project.
30.
(a) In case of a single building registered as 2 (two) separate projects under the provisions of RERA viz. 1st to 10th floor as one Project and 11thto 20th floor as another project, whether the Developer can consider the entire building as single ongoing project, since all the three conditions to be complied with for classifying a project as an ongoing project can be

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apartments have been booked on or before 31-03-2019 but completion certificate has not been issued or first occupation has not taken place by the said date shall be treated as ongoing projects.
31.
Whether TDR purchased on or after 1.4.2019 to be consumed by a developer-promoter in an ongoing project, in respect of which the promoter has opted for the new rate of tax, shall be liable to be taxed at the applicable rate, but limited to 1% or 5%, as the case may be, of the unsold area at the time of issuance of completion certificate?
Yes. Portion of such TDR transferred on or after 01-04-2019 which is used in an ongoing project in respect of which the promoter has opted for new rate of tax on construction of apartment @ 1% or 5% without ITC which remained un-booked on the date of issuance of completion certificate or first occupation of the project shall be liable to tax at the applicable rate not exceeding 1% of the value in case of affordable residential apartments and 5% of the

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evant entries of the notification are at items (iv), (v), (va) and (vi) against sl. no. 3 of the table in Notification No. 11/2017-Cenral Tax (rate) dated 28-06-2017 prescribing rate of 12% for works contract services of construction of affordable apartments/ apartments being constructed under schemes specified therein. In case of works contract services for construction of other apartments, rate of 18% as prescribed in item (xii) against sl. no. 3 of the table in Notification No. 11/2017-Cenral Tax (rate) dated 28-06-2017 shall be applicable.
33.
A registered project has three blocks and Completion Certificate has been received for one block prior to 1st April, 2019 and for two blocks will be received after that date.
Will such a project for which multiple completion certificates are received partly before 1st April, 2019 and partly after that date, constitute an ongoing project?
Where more than one completion certificate is issued for one project, for the purpose of definition

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. If one or two commencement certificates are received by the Developer prior to 1st April, 2019 and remaining on or after that date, will such a project be considered as an ongoing project?
Where commencement certificate has been issued even for part of the project on or before 31-03-2019, it shall be treated as an ongoing project provided other requirements of the definition of ongoing project are met.
35.
There are many projects of redevelopment/slum rehabilitation in pipeline as on 1st April, 2019. It is possible that in such projects the development rights have been conferred upon the developer and pursuant to which the development process has been initiated such as receipt of commencement certificate, excavation for foundation etc., but booking against units for sale has not been received prior to 1st April, 2019.
However, allotment of units to the existing dwellers (in respect of free supply units) which will yield no monetary consideration has been done. Clause (xiii) of

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unt of the promoter shall not be required to be met for such apartments to be considered as having been booked on or before 31-03-2019 provided other requirements for considering an apartment booked on or before 31.03.2019 have been met. The consideration for such apartments is receipt in the form of transfer of development rights from the original inhabitants in case of redevelopment projects or the government in case of slum rehabilitation projects. Hence, the condition relating to credit of at least one instalment in the bank account of the promoter for the apartments being constructed in a slum redevelopment project to have been partly or wholly booked shall be deemed to have been satisfied in order to consider the project as an ongoing project, provided all other conditions for considering an apartment as booked are met in case of apartments allotted to slum dwellers; as there is no cash payment to be made by the slum dwellers.
36.
Can a developer take deduction of actual value

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nstruction and reverse charge mechanism prescribed for payment of tax on TDR, FSI or long term lease (premium) in the new dispensation is applicable where development rights were transferred by way of an agreement executed prior to 1st April, 2019 but consideration, whether in cash or other form, flowed to the land owner, in full or part, on or after 1st April, 2019.
The new dispensation has been prescribed for real estate sector vide notifications issued on 29.03.2019. The same are effective prospectively from 01.04.2019. They shall apply only to development rights or FSI transferred on or after 01.04.2019. They shall not apply to development rights transferred by way of an agreement prior to 01.04.2019 even if the consideration for the same, in cash or kind, is paid in part or full on or after 01.04.2019.
39.
Land Owner being an individual is not engaged in the business of land relating activities and thus whether the transfer of development rights by an individual to a promoter

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booked. Whether such project where bookings have not started but construction has started, would be eligible for the new rates of 1% or 5% without ITC?
As per explanation in clause (xxviii) of para 4 of the notification No. 11/2017- CTR dated 28.06.2017, “project which commences on or after 01.04.2019” shall mean a project other than an ongoing project. A project, in which bookings for the apartments have not started, would not be covered under definition of “ongoing project”. The same would accordingly be treated as a project which commences on or after 01.04.2019 subject to the new rates of 1% or 5% without ITC, as the case may be.
41.
Whether the Form as per Annexure IV of the Notification No. 3/2019-CTR is to be filed with both the jurisdictional commissioner i.e. Central Tax, State Tax.
Whether modification / amendments in such Form are allowed subsequent to filing of the form, after 10th May, 2019?
No. The Form shall be filed manually with the office of the Commissioner

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