Goods and Services Tax

Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 14-2-2017 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN SECTION 99 REVISIONAL POWERS OF CHIEF COMMISSIONER OR COMMISSIONER:- A new concept of revisionary power of Chief Commissioner or Commissioner has been proposed in the GST Law as compared to the provisions prevalent in present indirect taxation. The Chief Commissioner or the Commissioner have been given power to examine the record of any proceeding and he considers that the decision or order passed under this Act is erroneous or improper, he may stay the operation of the order after giving opportunity of hearing or may pass necessary order including enhancing, modifying or annulling the decision or order. It is being provide

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able to the revenue department will create confusion and chaos as revision is possible on points that are not subject matter of appeal. This will lead to undue advantage to the revenue department because departmental officers will have the option of revision in case the appeal cannot be filed due to monetary limit. This is for the reason that the monetary limits are only applicable for disputing matter in appeal. Not only this, the revisionary power will indirectly provide additional time to revenue department to review an order or decision apart from the time limit for filing appeal because the time limit for revision is three years from the date of order or decision. It is also worth noting that it is also mentioned that for the purposes

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Goods and Services Tax – GST – By: – CA. Chitresh Gupta – Dated:- 13-2-2017 – Article 366(12A) of the Constitutional (101st Amendment) Act, 2016 defines the Goods and Services tax (GST) as a tax on supply of goods or services or both, except supply of alcoholic liquor for human consumption . The term supply is, however, not defined in the Constitution. The concept of supply is the key stone of the proposed GST architecture. In other words, supply is life blood of GST regime. GST is a multi-stage tax levied on supply of goods and / or services, collected at each stage of the production and distribution, in proportion to the value added by each taxable person in the chain of supply. In the GST regime, the entire value of supply of goods and / or services is proposed to be taxed in an integrated manner, unlike the existing indirect taxes, which are charged independently either on the manufacture or sale of goods, or on the provisions of services. Section 3 of the Model CGST / SGST Act ex

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to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another. It may be absolute or conditional. Transfer Merriam- Webster to give over the legal possession or ownership of to cause (something) to pass from one to another to cause to go or be taken from one place to another to shift possession of (something) from one person to another Barter Merriam- Webster to trade by exchanging one commodity for another Exchange Transfer Of Property Act,1882 When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both things being money only, the transaction is called an exchange . License Merriam- Webster a permission granted by competent authority to engage in a business or occupation or in an activity otherwise unlawful a document, plate, or tag evidencing a license granted a grant by the holder of a copyright or patent to another of any of the rights embodied in the copyright or

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ng part of the land which are agreed to be severed before supply or under a contract of supply; Section 2(92) : services means anything other than goods; Explanation 1 -Services include transactions in money but does not include money and securities; Explanation 2 – Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. It may be noted that the term service has been defined in the wider sense as any transaction which is not goods, shall be services except money and securities. Section 2(1): actionable claim shall have the meaning assigned to it in section 3 of the Transfer of Property Act, 1882; Section 3 of Transfer of Property Act, 1882 : actionable claim means a claim : to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or

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vouchers do not create a 'beneficial interest' in a moveable property but only enable a person to enjoy a particular service. Section 2(90) : Securities shall have meaning assigned to it in sub-section (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). Thus, activities that are in the nature of only transfer of title by way of sale, redemption, purchase or acquisition of securities on principal-to principal basis would not be liable to GST since excluded from the definition of goods or services . However, the services of dealers, brokers or agents in relation to such transactions would be liable to GST. The activities which are not in the nature of transfer of title in securities (for example a person agreeing not to exercise his right in a security for a given period of time for a consideration) would not be included in exclusion and would be liable to GST. Examples of Securities: buying or selling of mutual funds or debentures would neither be

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ice since to the extent of face value of the instrument it is only a transaction in money. Debt collection services or credit control services would not be considered as transaction in money since provided for a consideration and would be liable to GST. made or agreed to be made for a consideration One of the essential conditions for the supply of goods and/or services to fall within the ambit of GST is that a supply is made for a consideration. For GST purposes, consideration does not refer only to money. It covers anything which might be possibly done, given or made in exchange for something else. For instance, it might be something exchanged in a barter arrangement, such as in a part exchange, or where a service is performed in return for another service. A consideration may be monetary, non-monetary or a combination of both but it must be capable of being expressed in monetary terms. Section 2(28): consideration in relation to the supply of goods or services includes: (a) any payme

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goods or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply; Example: Donations to a charitable organization are not consideration unless charity is obligated to provide something in return e.g. display or advertise the name of the donor in a specified manner or such that it gives a desired advantage to the donor. Examples of Non-monetary Consideration [para 2.2.4 of Taxation of Services -An Education Guide dated 20-06-2016] Non-monetary consideration essentially means compensation in kind such as the following: ♦ Supply of goods and services in return for provision of service ♦ Refraining or forbearing to do an act in return for provision of service ♦ Tolerating an act or a situation in return for provision of a service ♦ Doing or agreeing to do an act in return for provision of service Illustrations IF………… And in Return… A agrees to dry clean B s Clothes B agrees to

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er GST. The term in the course or furtherance of has not been defined under the Model GST Law. The term in the course means in the process or progress of. The term furtherance as understood in common parlance means the advancement of a scheme or interest, promotion, furthering, advancement, forwarding, improvement, development, betterment, stimulation. There is no exhaustive definition or test for determining whether an activity is in the course or furtherance of business. Internationally, the business test has emerged through judicial decisions. Generally, whether an activity carried by a taxable person constitutes a business or not is determined by considering the whole of the activities carried on by him. If these activities are predominately concerned with the making of taxable supplies to customers for a consideration, it has to be held that the taxable person is in the business of making taxable supplies, and the taxable supplies which he makes are supplies made in the course of

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n 2(30) of IGST Act has adopted the meaning of supply from CGST Act. It may be noted that Importation of services for personal use still continues to be considered as a supply thus if a person takes a career counseling from a foreign university for his daughter and pays the consideration for the same in foreign currency to such university, it will amount to importation of service and will be within the ambit of supply and GST will be charged on the same. Importation of service without consideration will not tantamount to supply. Thus if A s brother who is in United States and is an architect , has send the designs for A s house out of love and affection and where there is absolutely no consideration involved, monetary or non monetary, then such transaction will not be within the ambit of supply. SUPPLY WITHOUT CONSIDERATION [Section 3(1)( c)] As per section 3(1)(c ), Supply includes a supply specified in Schedule I, made or agreed to be made without a consideration. It implies that Tra

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rsa Example: Principal supplying goods to the agent for onwards sale in various parts of the country Agent procuring input for supplying to the factory of the Principal TAXABILITY OF COMPOSITE OR MIXED SUPPLY [SECTION 3(5)] The tax liability on a composite or a mixed supply shall be determined in the following manner – Composite Supply : A composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. The term word composite supply has been defined in section 2(27)as under: composite supply means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration : Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a compos

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Goods and Services Tax – GST – By: – Ashish Mittal – Dated:- 13-2-2017 – Background: The esteemed vision of Hon ble Prime Minister to create a digital and paper less economy cannot be crystalize without the digitalization of documentation and removal of hurdle of hard document. With the aforementioned vision, targets are being set out and focus shifting towards digital economy which is clearly evident through its impact on current tax regimes via various modification in current tax laws. Keeping the same in mind great emphasis have been given in draft Model GST model Law (hereinafter referred to as MGL ) while drafting various provisions relating to invoices under the CHAPTER- VII with four notified sections ranging from Section 28 to Section 31 read with separate set of rules and Performa of Invoices as revised on 25th November 2016 with suitable modification from the earlier draft by understanding the view of industry and suggestion of empowered GST council. Applicability Invoices b

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le Services Yes Yes Yes No 3 Supplying Non-Taxable Goods No Yes No Yes 4 Supplying Non-Taxable Services No Yes No Yes 5 Paying Tax Under Sec. 9 No Yes No Yes For Content of Each Invoice Refer Infra mentioned content list. Legal Content of Various Invoices: Once the applicability for various invoices t different situation is determined now it is very much relevant for the legal support of the aforementioned tabulated content. In this regards following table of legal content have been inserted to summarize the same: Statement showing Table summarizing Various legal content in respect to Issuance of Invoice under Sec. 28 read with Invoice Rules S.No. Registered Taxable Person involved in following type of Supply Types of Invoice When to issue Tax Invoice? When to issue Bill of Supply Revised Invoice Supplementary Invoice 1 Supplying Taxable Goods Before or at the time of 1. Removal involving movement of goods 2. Delivery or making available in other cases to the recipient Note: In relatio

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x invoice (Discussed later in details) (Section 28(2)) Not Applicable Can Issue if 1. Taxable Value 2. Tax Amount is less than actual value of supply 3 Supplying Exempted Goods Not Applicable A bill of Supply shall be issued in lieu of Tax Invoice No such document is required where value of supply is less than ₹ 100 unless the recipient require the same. Not Applicable Not Applicable 4 Supplying Exempted Services Not Applicable Not Applicable Not Applicable 5 Composition Supplier Under Sec. 9 Not Applicable Not Applicable Not Applicable For Content of Each Invoice Refer Infra mentioned content list. Special Note 1: In Case of Supply of Service Invoice shall be issued in: 1. Normal Supply-30 days/45 days in Banking Co./NBFC/Financial Institution from date of supply 2. Continuous Supply-within 30 days of each event specified in the contract as date of supply Special Points in different Situations: In respects to certain situations wherein the time of issue of invoice or certain sta

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ly ceases valued up to the cessation date Note: CG/SG may specify continuous supply of service as deemed fit. 5 Goods sent or taken on approval or sale or return or similar terms At or before time when supply occurrence took place or 6 month from removal whichever is earlier Concept of Debit and Credit Note (Section-24): A summarized table stating various question is comparison form in relation to debit and credit note have inserted herewith for quick reference to the issue and is various aspects: Statement Showing All about Debit and Credit Note (Section-24) Basis Tax Invoice issued for Goods or Service and Taxable Value or Tax is in Excess of Actual Supply Deficient of Actual Supply What Document to be Issued Credit Note Debit Note Who Will Issue Supplier Supplier To Whom Recipient Recipient Last Date 30th Sept.(of Subsequent F.Y) or Date of Annual Return Whichever is Earlier When it Can't be Issued When incidence of tax & interest is passed N.A Disclosure Requirement Take th

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code of goods or Accounting Code of services; (f) Description of goods or services; (g) Quantity in case of goods and unit or Unique Quantity Code thereof; (h) Total value & taxable value (after discount and abatement) of goods or services; (i) Rate and amount of tax (CGST, SGST or IGST); (j) In interstate supplyplace of supply with state name (K) Place of delivery where the same is different from the place of supply; (l) Whether the tax is payable on reverse charge; (m) The word Revised Invoice or Supplementary Invoice , at prominent place where Applicable with date & invoice number of original invoice; and (n) Signature or digital signature of the supplier or his authorized representative. As Per Rule-3 Bill of Supply shall include following details:- (a) Name, address and GSTIN/ Unique ID Number (recipient) of supplier & recipient; (b) A consecutive unique serial number of F.Y; (c) Date of its issue; (d) HSN code of goods or Accounting Code of services; (e) Description o

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ing tax invoice or bill of supply Note: 1. Revised Invoice can be issued if registration granted previous to issuance of RC 2. Consolidated Revised invoice for interstate supply up to ₹ 250 can be issued. As Per Rule-5 Input Service Distributor (ISD) Invoice shall include following details:- (a) Name, address and GSTIN/ Unique ID Number (recipient) of ISD & recipient of credit; (b) A consecutive unique serial number of F.Y; (c) Date of its issue; (d) Amount of credit distributed; (e) Name, address and GSTIN of supplier whose credit distributed (f) Signature or digital signature of the supplier or his authorized representative. For Banking Company, Financial Institution and NBFC shall include: 1. All above Information. 2. Not necessarily Serially Numbered 3. Any other Documents Instead of Tax Invoice. For GTA: Consignment Note Shall be deemed to be Tax Invoice For passenger transport: Ticket shall substitute tax Invoice Certain Common Points: Rule-2 Manner of Issuing Invoice A

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TRADE NOTICE No. 17/2016 Dated:- 13-2-2017 Trade Notice – Circulars – GST – OFFICE OF THE COMMISSIONER OF CUSTOMS, CENTRAL EXCISE SERVICE TAX HYDERABAD-IV COMMISSIONERATE POSNETT BHAVAN : TILAK ROAD : RAMKOTE : HYDERABAD-500001 C. No. IV/08/01/2016-Tech. Misc Date. 13-02-2017 TRADE NOTICE No. 17/2016 Sub : GST – Migration of existing Central Excise and Service Tax assesses in GST – Setting up of GST Migration Seva Kendra – Regarding. Attention of the members of trade, industry and all concerned is invited to the subject matter mentioned above. As you are aware, GST is scheduled for rollout shortly. One of the pr

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Goods and Services Tax – Started By: – HImanshu Singh – Dated:- 11-2-2017 Last Replied Date:- 15-2-2017 – Dear Sir, I have a technical query regarding GST Registration in relation to Government Organisation. A Government organization which is under the Control of Government of India. Head office of that organization is located in New Delhi and Manufacturing, marketing and distribution units are located all over India. Presently transfer of Goods by one unit to another unit not chargeable to VAT/CST as they are sister units and form F is issued against such supply.However, while Migration of all factories to GST an issue came to know that head office located in New Delhi and all other units having their separate PAN and different from each

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 10-2-2017 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN Definition of Principal place of business, Proper Officer and Services Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:- 2(77) Principal place of business: the new definition reads as follows: Principal place of business means the place of business specified as the principal place of business in the certificate of registration; The old definition read as follows: principal place of business means the place of business specified as the principal place of business in

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tion. Deleting the condition of keeping books of accounts has made the definition simple to follow and now the assessee can name any of his premises as principal place of business. But there is no need to keep books of accounts there only. It can be kept at any place of business. 2(79) Proper Officer: the new definition reads as follows: Proper Officer in relation to any function to be performed under this Act, means the officer of goods and services tax who is assigned that function by the Commissioner of CGST / SGST; The old definition reads as follows: proper officer in relation to any function to be performed under this Act, means the officer of goods and services tax who is assigned that function by the Board/Commissioner of SGST; The

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r than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. The old definition read as follows: services means anything other than goods; Explanation: Services include intangible property and actionable claim but does not include money. The amendment bought in the definition is that Securities explicitly excluded from services definition. We have told in our earlier update that securities are excluded from the definition of goods under Section 2(49) also. Thus securities won t be considered as goods or services and as a result, GST won t be applicable on the same. The definitio

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 9-2-2017 Last Replied Date:- 9-2-2017 – In the course of time the GST Authorities may take various decisions, issued orders, issued summons, notice or other communications to the assessee or other required persons. The service of communication of any sort is to fulfill the requirements of principles of Natural Justice. Serving the same is not enough and the confirmation of receipt of the said communication should be ensured by the issuing authorities. Some sort of notices, orders, summons etc., to be issued or communicated by the proper officers under the provisions of this Act is discussed in this Article as below. Cancellation or revocation of registration Section 26 (4) of the Act provides that the proper officer shall not cancel the registration without giving a notice to show cause and without giving the person a reasonable opportunity of being heard. Section 27 (3) provides that the proper officer shall not rejec

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sis, 90% of the total so claimed, excluding the amount of input tax credit provisionally accepted, in the manner and subject to the conditions, limitations and safeguards as may be prescribed and thereafter make an order for final settlement of the refund claim after the due verification of documents furnished by the applicant. Section 48 (11) provides that where an order giving rise to a refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending and the Commissioner is of the opinion that grant of such refund is likely to adversely affect the revenue in the said appeal or other proceeding on account of misfeasance or fraud committed, he may, after giving the taxable person an opportunity of being heard, withhold the refund till such time as he may determine. Electronic Commerce Section 56 (9) provides that any authority not below the rank of Joint Commissioner may serve a notice either before or during the course of any proc

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Section 58(1), pass the final order after taking into account such information as may be required for finalizing the assessment. Assessment of non filers of returns Section 60 (1) provides that where a registered taxable person fails to furnish the return required under Section 34 or Section 40, even after the service of a notice under Section 41, the proper officer may proceed to assess the tax liability of the said person to the best of judgment taking into account all the relevant material which is available or which he has gathered and issue an assessment order within time limit specified in Section 67 (8). Assessment of unregistered persons Section 61 provides that notwithstanding anything to the contrary contained in Section 66 or Section 67 where a taxable person fails to obtain registration even though liable to do so, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment for the relevant tax periods and issue an assessme

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fund has erroneously been made, or who has wrongly availed or utilized input tax credit, requiring to show cause why he should not pay the amount specified in the notice along with interest payable thereon under Section 45 and a penalty leviable under the provisions of this Act or the rules made there under. Section 66(7) provides that where the proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to 10% of tax or ₹ 10,000/- whichever is higher, due from such person and issue an order. Section 67 (1) provides that where any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized by reason of fraud or willful mis-statement or suppression of facts to evade tax, the proper officer shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to who

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een so paid, the proper officer may serve on the person liable to pay such amount a notice requiring to show cause why the said amount as specified in the notice, should not be paid by him to the credit of the Central or a State Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act. Section 69 (6) provides that the proper officer shall issue an order within one year from the date of issue of the notice. Recovery of tax Section 72 (c) (i) provides that the proper officer may, by a notice in writing, require any person from whom money is due or become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government either forthwith upon the money becoming due or being held, or at or within the time specified in the notice not being before the money becomes due or is held, so much of the money as is sufficient to pa

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mmon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act. Power to impose penalty in certain cases Section 88 provides that where the proper officer is of the view that a person is liable o a penalty and the same is not covered under any proceeding under Sections 59, 60, 61, 62, 66, 67, 89 or 90, he may issue an order levying such penalty after giving a notice and after giving a reasonable opportunity of being heard to such person. Confiscation of goods Section 90 (4) provides that no order of confiscation of goods and/or conveyance and/or imposition of penalty shall be issued without serving a notice on such person requiring him to show cause and without giving the person a reasonable opportunity of being heard. First appeal Section 98 (11) provides that the order of the First Appellate Authority disposing of the appeal shall be in writing

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the Appellate Authority Section 119 (2) provides that the order shall be passed within a period of 90 days from the date of filing of appeal. Service of notice Section 159 of the Act provides that any decision, order, summons, notice or other communication under the Act or the rules made there under shall be served by any one of the following methods- by giving or tendering it directly or by a messenger including a courier- to the addressee; or the tax payer; or to his manager; or to agent duly authorized; or to an advocate or a tax practitioner holding authority to appear in the proceeding on behalf of the tax payer; or to a person regularly employed by him on connection with the business; or to any adult member of family residing with the tax payer; or by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorized agent, if any at his last known place of business or residence; or by sending a communication to his e-mail

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Goods and Services Tax – Started By: – RAM SHARMA – Dated:- 8-2-2017 Last Replied Date:- 15-2-2017 – Dear Experts,Whether a manufacturer can take cenvat credit on freight and commission given to our consignment agent in gst draft law just like as current service tax law. Pl clarify.Thanks & Regards – Reply By MARIAPPAN GOVINDARAJAN – The Reply = GST law is not in final shape. Any change can occur. Please await till that time. – Reply By KASTURI SETHI – The Reply = Rightly advised by Sh.MARI

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 8-2-2017 Last Replied Date:- 9-2-2017 – Section 2(9) of Model Goods and Services Tax Act, 2016 ( Act for short) defines the phrase, Appellate Tribunal as the National Goods and Services Tax Appellate Tribunal constituted under Section 100. Appeal to the Appellate Tribunal in this act is the second stage of the appeal. Section 101(1) of the Act provides that any person aggrieved by an order passed against him Section 98 or Section 99 of the Act may appeal to the Appellate Tribunal against such order within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal. Section 98 provides for the appeals to fir

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officer subordinate to him is erroneous in so far as it is prejudicial to the interest of the revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order. Section 100 provides for the constitution of the National Appellate

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National President, Members (Judicial) and the Member (Technical-CGST) shall be such as may be prescribed by the Central Government on recommendations of the Council. The qualifications, eligibility conditions and the manner of selection and appointment of State Presidents and the Member s (Technical – SGST) shall be such as may be prescribed by the State Government, on the recommendations of the Council. The National President and the State Presidents shall exercise such powers and discharge such functions as may be prescribed on the recommendations of the Council. On ceasing to hold office, the National President, the State Presidents or other Members of the Appellate Tribunal shall not be entitled to appear, act or plead before the Appel

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Asst Accounts Manager – Goods and Services Tax – Started By: – Banamali Das – Dated:- 7-2-2017 Last Replied Date:- 11-2-2017 – Rate of Entry Tax, Vat, Quartly Return, GST of odisha on Construction pro

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Goods and Services Tax – GST – Dated:- 7-2-2017 – The Government is not thinking to hike service tax if GST roll out is delayed. The Government is taking steps to expedite the GST and to take the concerns of the States on board. Goods and Services Tax Council (GST Council) has been constituted on 15.09.2016 under Article 279A of the Constitution. The GST Council consists of the Union Finance Minister, the Union Minister of State in charge of Revenue or Finance and the Minister in charge of Fina

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Central Excise – Started By: – SUNIL NAMA – Dated:- 7-2-2017 Last Replied Date:- 10-2-2017 – DEAR SIR , WE ARE ON THE VERGE OF STARTING A NEW UNIT IN MARCH 2017 – NOW SINCE GST IS AROUND THE CORNER , PLEASE ADVICE 1 } SHOULD WE TAKE NEW CENTRAL EXCISE REGISTRATION FOR NEW UNIT OR WAIT TILL GST COMES IN TOO TAKE CENVAT CREDIT OF NEW MACHINES COMING IN MARCH ? 2) OR SHOULD WE TAKE NEW EXCISE REGISTRATION AND TAKE CREDIT AND WAIT FOR GST TO TRANSFER THE CREDIT IN IGST . 3) WILL IGST AND CGST BE US

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Goods and Services Tax – Started By: – monika gupta – Dated:- 7-2-2017 Last Replied Date:- 10-2-2017 – Whether GST will be applicable on educational trust? – Reply By KASTURI SETHI – The Reply = If trust is registered under Section 12 AA of the Income Tax Act, then exemption from GST is possible. Sometimes changes take place at the last moment. – Reply By YAGAY AND SUN – The Reply = Well, in our the tax position is not clear. The tax position will be cleared once the final GST Law will come. –

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 7-2-2017 Last Replied Date:- 30-12-1899 – GST DAILY DOSE OF UPDATION BY CA PRADEEP JAIN Definitions of Accounts, Custom frontiers of India and non-taxable online recipient Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised IGST law and comparing the same with old model GST law to know the changes made in revised law:- Section 2(1) Accounts: the newly added definition reads as follows: Account means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account New definition of Account has been inserted which refers to bank account. It seems that interes

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individual or any person not registered under section 23 19 of the CGST Act, 2017 receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory; Explanation.-For the purposes of this clause, ―governmental authority‖ means an authority or a board or any other body: (i) set up by an Act of Parliament or a State legislature; or (ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243Wof the Constitution This is a newly added definition which has been added keeping in view the recent amendments mad

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 7-2-2017 Last Replied Date:- 22-2-2017 – Budget 2017-18 contains 3 major reforms. These are- Presentation of Budget advanced to 1st February to enable the Ministries to operationalise all activities from the commencement of the financial year. Merger of Railways Budget with General Budget to bring Railways to the centre stage of Government s Fiscal Policy, and Removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries. After it was almost clear after 9th meeting of GST Council that GST may now be implemented from July, 2017 only, at the earliest, all eyes were on the Union Budget 2017-18 which has since been presented in the Parliament of India on 1st February, 2017. Only time will tell us whether it is the last Budget for Service Tax, Central Excise and Central Sales Tax and that whether fiscal 2017-18 is going to be the historic year of transition

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because widening of tax base. Not many changes in current central excise and Service Tax regime as these will be replaced soon by GST No change in tax rates of excise duty as well as service tax. Abolishment of R & D cess is in allignment with GST The present Budget is focused on TEC, i.e., transform, energize and clean India which contains measures for stimulating growth, digital economy and ease of doing business. This agenda of TEC India seeks to – Transform the quality of governance and quality of life of our people; Energies various sections of society, especially the youth and the vulnerable, and enable them to unleash their true potential; and Clean the country from the evils of corruption, black money and non-transparent political funding. It also seeks to facilitate RAPID, i.e., Revenue, Accountability, Probity, Information and Digitalization. There are number of clues on goods and services tax but without any assurance on implementation schedule. Finance Minister in his B

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atory work for this path-breaking reform has been a top priority for the Government. In this context, several teams of officers both from the States and Central Board of Excise and Customs have been working tirelessly to give finishing touch to the Model GST law and rules and other details. Government on its part has promptly given effect to various provisions of the Constitutional Amendment Act, including constitution of the GST Council. Since then, the GST Council held 9 meetings to discuss various issues relating to GST, including broad contours of the GST rate structure, threshold exemption and parameters for composition scheme, details for compensation to States due to implementation of GST, examination of draft model GST law, draft IGST law and the Compensation Law and administrative mechanism for GST. It is my privilege to inform this august house that the GST Council has finalised its recommendations on almost all the issues based on consensus and after spirited debate and disc

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Goods and Services Tax – GST – Dated:- 4-2-2017 – New Delhi, Feb 3 (PTI) Keen to rollout the Goods and Services Tax by July, the government plans to take the supporting legislations to Parliament next month, Finance Minister Arun Jaitley said today. While the all-powerful GST Council has already decided on a four-slab tax structure for the indirect tax regime, the levy for different goods and services will be decided by May or June. Jaitley said he hopes to get Central GST (CGST) and Integrated GST (IGST) draft legislations approved at the next GST Council meeting on February 18 and bring them in the second half of ongoing Budget Session. It will reconvene on March 9 after a month long break and continue till April 12. Now the main policy

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nsation Act needs to be approved by Parliament to provide for compensation to states that lose revenue from implementation of GST in first five years. One parallel exercise is fitment of various commodities in to the rate structure for that the officer have to meet, Jaitley said. The GST Council has fixed the four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 percent. Revenue Secretary Hasmukh Adhia said a good or service will be put in a slab which is closest to the current rate at taxes. As far as fitment of rate is concerned there are four slabs. The present incidence of VAT plus excise duty, or VAT plus service tax it whatever is the incidence, the slab closer to that is the slab where it will fall, he said. Also, there

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 4-2-2017 – GST DAILY DOSE OF UPDATION Definition of First Stage Dealer Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:- Section 2(46): First Stage Dealer: The new definition reads as follows: First Stage Dealer means a dealer, who purchases the goods directly from,- (i) the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from where the goods are sold

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ion was there in Model GST law for the dealers. As the cenvat credit of excise duty was not allowed to dealers, it would have also resulted in heavy burdening in terms of cost for them. The trade associations were demanding the transitional provision for the same. This is welcome step on behalf of the Government that they have adhered to the same. But it is interesting to note that no mechanism has been prescribed to avail the cenvat for the dealers. They are maintaining RG 23 D register and there is clear cut balance of credit can be worked out for them. Even they need not to follow the FIFO method. They can clearly tell which inputs are lying with them and invoice relating to them as well as the credit available for the same. This details

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Goods and Services Tax – GST – Dated:- 3-2-2017 – All decisions of GST Council so far have been taken unanimously. Various states may have different points of view on an issue but the final decisions have been unanimous. The issue regarding treatment of the existing tax incentive schemes of the Central and State Governments was discussed during the 2nd Meeting of the GST Council held on 30th September, 2016 and the Council agreed that all entities exempted from payment of indirect tax under any

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 3-2-2017 Last Replied Date:- 3-2-2017 – A taxable person is required to furnish proper explanation to the officer in case any discrepancy is detected in the return filed under model GST law ( law for short). Such information is required to be furnished within 30 days of being informed. Such date may be extended further by the officer if sufficient cause is shown. If a taxable person does not furnish the required information within the time specified or does not take corrective action within a reasonable period after accepting the discrepancies, the Proper Officer may take recourse to any of the following provisions- To proceed to conduct audit under Section 63 of the law; To direct the conduct of a special audit under Section 64 which is to be conducted by a Chartered Accountant or a Cost Accountant nominated for this purpose by the Commissioner; or To undertake procedures of inspection, search and seizure under Sectio

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udit is required to be completed within three months from the date of commencement of audit. If the audit cannot be completed within three months from the date of commencement of audit the Commissioner may, if he is satisfied, extend the period of audit for a further period not exceeding six months. The reasons for such extensions shall be reduced in writing. The term commencement of audit is important because audit has to be completed within a given time frame in reference to the date of commencement. Commencement of audit means the later of the following- the date on which the records/accounts called for by the audit authorities are made available to them, or the actual institution of audit at the place of business of the taxpayer. Section 63(5) provides that during the course of audit, the authorized officer may require the taxable person to afford him the necessary facility to verify the books of account or other documents as he may require and which may be available at such place

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k of Deputy/Assistant Commissioner, having regard to the nature and complexity of the case and the interest of the revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such taxable person by notice in writing to get his records including books of account examined and audited. The special audit shall be carried out by a Chartered Accountant or the Cost Accountant nominated by the Commissioner. Section 64 (2) provides that the Chartered Accountant or Cost Accountant shall within the period of 90 days, submit a report of such audit duly signed and certified by him to the Deputy/Assistant Commissioner mentioning therein such other particulars as may be specified. The proper officer may extend the time limit of special audit by another ninety days on the application of the Chartered Accountant or Cost Accountant on behalf of the taxable person or for any ma

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Budget – Dated:- 1-2-2017 – GST Council has finalised its recommendations on almost all the issues based on consensus, says Finance Minister in his Budget Speech Extensive reach-out efforts to trade & industry for GST to start from 1st April, 2017 The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley while presenting the General Budget 2017-18 in Parliament today said that the GST Council has finalised its recommendations on almost all the issues based on consensus after spirited debate and discussions. The Finance Minister said that the Government on its part has promptly given effect to various provisions of the Constitutional Amendment Act, including constitution of the GST Council. The GST Council held 9 meetings

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preparatory work towards ushering in GST which is by far the biggest tax reform since Independence. Several teams of officers both from the States and Central Board of Excise and Customs (CBEC)have been working to give finishing touch to the Model GST law, rules and other details, he added. Shri Jaitley said that the Government, through the Central Board of Excise & Customs (CBEC) shall continue to strive to achieve the goal of implementation of GST as per schedule without compromising the spirit of co-operative federalism. He added that the implementation of GST is likely to bring more taxes both to Central and State Governments because of widening of tax net. The Finance Minister Shri Jaitley stated that not many changes have been pro

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 1-2-2017 Last Replied Date:- 3-2-2017 – In GST there is no separate meaning for goods or service. Supply is common for both of the goods and service. Section 3 defines the term supply . The provisions of Finance Act, 1994 and Central Excise Act, 1944 and State Value Added Tax laws give powers to the respective Government to exempt any goods/service. The exemption may be full or partial; permanent or for a particular period. The Government may review the exemption given to such goods/services and do necessary action on exemption according to the situation requires. Many a notification is being issued for exemption in respect of service tax as well as central excise duty by the CBE&C and also by the State Governments for their respective VAT. All exemptions under these Acts will come to an end on the introduction of GST regime. The Model GST law and IGST law also provides for exemption from GST. Section 2(44) of the

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ing such goods and/or services shall not pay the tax on such goods and/or services. Section 11(2) provides that if the Central or a State Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendation of the Council, by special order in each case, exempt from payment of tax, under circumstances of an exceptional nature to be stated in such order, any goods and/or services on which tax is leviable. Section 11(3) provides that the Central or a State Government may, if it considers necessary or expedient so to do for the purpose of clarifying the scope or application of any notification issued under Section 11(1) or order issued under Section 11(2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under Section 11(1) or order under Section 11(2), and every such explanation shall have effect as if it had always been the part of the first such notific

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the Central Government to grant exempt generally either absolutely or subject to such conditions as may be specified in the notification, inter-state supply of goods and/or services of any specified description from the whole or any part of the tax leviable thereon. The Central Government is to satisfy that it is necessary in the public interest so to do and on the recommendations of the GST council. Where an exemption in respect of any goods and/or services from the whole of the tax leviable thereon has been granted absolutely, the taxable person providing such goods and/or services shall not pay the tax on such goods and/or services. Section 6(3) provides that where the Central Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendation of the GST Council, by special order in each case, exempt from payment of tax, under circumstances of an exceptional nature to be stated in such order, any goods and/or services on which tax is leviable

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 1-2-2017 – GST DAILY DOSE OF UPDATION Definition of Consideration Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:- Section 2(28): Consideration: the new definition reads as follows: Consideration in relation to the supply of goods or services includes (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or

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utmost importance in the light of decision of Supreme Court in the case of Maruti Suzuki Ltd. which states that subsidy provided by the government in form of adjusted payment of VAT will be treated as additional consideration and will be added in the assessable value of the goods for the purpose of excise duty. Relying on this decision, notices were sent to assessees claiming this subsidy. Now the new definition has specifically excluded the subsidies from its purview putting rest to all the possible litigations that may arise on this issue. Another point of probable litigation is that the definition states that consideration can be voluntary or non voluntary. Although the main phrase uses the term any act or forbearance , but it does not

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Sale of immovable property treated as Supply – Goods and Services Tax – Started By: – NANDAKUMAR KONKAR – Dated:- 31-1-2017 Last Replied Date:- 4-2-2017 – Under MGST Law, Clause 5 (b) of Schedule II [transactions to be treated as 'Supply'] states that : construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or before its first occupation, whichever is earlier. broadly construed to mean that transfer of property under construction (where entire consideration has been received after issuance of comple

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, it would not be a supply. So regardless of whether entire consideration is paid by buyer after CC or before 1st occupation, it would not be a supply. Alternately, if first occupation exception is not linked with receipt of entire consideration, it could mean in cases of occupation before issuance of CC, transaction would not be supply. Kindly clarify CA Nandakumar Konkar – Reply By KASTURI SETHI – The Reply = Dear Sir, Note the words, In GST there is no separate meaning for goods and services. written by Sh.M.Govindarajan, Sir in his article dated 1.2.17. – Reply By KASTURI SETHI – The Reply = Pl. read Goods or Services instead of goods and services . – Reply By NANDAKUMAR KONKAR – The Reply = Sir,My query is not whether sale of immovable

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Goods and Services Tax – GST – Dated:- 31-1-2017 – GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF EXCISE & CUSTOMS NORTH BLOCK, NEW DELHI-110001 F.No. IV/26/24/2016-Systems (S) Tel. : +91-11-23092628 Fax : +91-11-23092346 27.01.2017 Dear Colleague, Sub: Service Tax -Monitoring of Non-Filers/Stop-Filers & Widening of Taxpayer base- Reg. As you are aware, the Directorate General of Systems has been regularly taking several initiatives to enable the field formations to closely monitor the compliance levels in the Service Tax. Both in ACES as well as in EDW, there are several methods for identifying the Non-filers and Stop-filers of ST-3 Returns. The Directorate General of Systems has taken steps to send

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Budget – Dated:- 31-1-2017 – Economic Survey: The Constitutional Amendment on GST will create a common Indian market, improve tax compliance and governance and boost investment and growth. The Economic Survey states that the world GDP is expected to grow because of a fiscal stimulus in the United States but points out that there are considerable risks. Economic Survey: Addressing the Twin Balance Sheet problem of over-indebted corporates and bad-loan-encumbered Public Sector Banks will be vital. The Economic Survey 2016-17 presented in Parliament today states that against the backdrop of robust macro-economic stability, the year was marked by two major domestic policy developments-the passage of the Constitutional Amendment, paving the way for implementing the transformational Goods and Services Tax (GST), and the action to demonetize the two highest denomination notes. The GST will create a common Indian market, improve tax compliance and governance, and boost investment and growth;

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vements, especially involving the Chinese yuan, and from geo-political factors. Another serious medium-term risk is an upsurge in protectionism that could affect India s exports. The Survey states that the year also saw a number of legislative accomplishments in the country. In addition to the GST, the Government: Overhauled the bankruptcy laws so that the exit problem that pervades the Indian economy-with deleterious consequences highlighted in last year s Survey-can be addressed effectively and expeditiously; Codified the institutional arrangements on monetary policy with the Reserve Bank of India (RBI), to consolidate the gains from macroeconomic stability by ensuring that inflation control will be less susceptible to the whims of individuals and the caprice of governments; and Solidified the legal basis for Aadhaar, to realise the long-term gains from the JAM trifecta (Jan Dhan-Aadhaar-Mobile). Beyond these headline reforms were other less-heralded but nonetheless important actions

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ates and bad-loan-encumbered public sector banks-a legacy of the years surrounding the Global Financial Crisis will be vital. Looking further ahead, societal shifts at the level of ideas and narratives will be needed to overcome three long-standing meta-challenges: inefficient redistribution, ambivalence about the private sector and property rights, and improving but still-challenged state capacity. Doing so would lift an economy that is oozing with potential. In the aftermath of demonetisation, and at a time of gathering gloom about globalization, articulating and embracing those ideational shifts will be critical to ensuring that India s sweet spot is enduring not evanescent. The report says that India seems to be a demographic sweet spot with its working age population projected to grow by a third over the next three decades providing it a potential the growth boost from the demographic divided which is likely to peak within next five years. The Survey report also states that the Sw

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