Goods and Services Tax

THE SCHEDULE – Acts – SCHEDULES – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – THE SCHEDULE – THE SCHEDULE [See section 8 (2)] 1. In this Schedule, reference to a tariff item , heading , sub-heading and Chapter , wherever they occur, shall mean respectively a tariff item, heading, sub-heading and Chapter in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). 2. The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), the section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this Schedule. S.No. Description of supply of goods or services Tariff item, heading, sub-heading, Chapter, or sup

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omerated. 2701, 2702 or 2703 Four hundred rupees per tonne. 4. Aerated waters. 2202 10 10 Fifteen per cent. ad valorem. 1[4A Motor vehicles for the transport of not more than thirteen persons, including the driver. 8702 10, 8702 20, 8702 30 or 8702 90 Twenty-five per cent. ad valorem.] 5. Motor cars and other motor vehicles principally designed for the transport of persons (other than motor vehicles for the transport of ten or more persons, including the driver), including station wagons and racing cars. 8703 2[Twenty-five per cent. ad valorem] 6. Any other supplies. Fifteen per cent. ad valorem. ******************** Notes:- 1. As Inserted vide Goods and Services Tax (Compensation to States) Amendment Act, 2017, Dated 19-01-2018 2. As Amend

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Section 14 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 14 – Power to remove difficulties. 14. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, on the recommendations of the Council, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provide

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Section 13 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 13 – Laying of rules before Parliament. 13. Every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately followi

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Section 12 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 12 – Power to make rules. 12. (1) The Central Government shall, on the recommendations of the Council, by notification in the Official Gazette, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a) the conditions which

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Section 11 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 11 – Other provisions relating to cess. 11. (1) The provisions of the Central Goods and Services Tax Act, and the rules made thereunder, including those relating to assessment, input tax credit, non-levy, short-levy, interest, appeals, offences and penalties, shall, as far as may be, mutatis mutandis, apply, in relation to the levy and collection of the cess leviable under section 8 on the intra-State supply of goods and services, as they apply in relation to the levy and collection of central tax on such intra-State supplies under the said Act or the rules made thereunder. (2) The provisions of the Integrated Goods and Se

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Section 10 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 10 – Crediting proceeds of cess to Fund 10. (1) The proceeds of the cess leviable under section 8 and such other amounts as may be recommended by the Council, shall be credited to a non-lapsable Fund known as the Goods and Services Tax Compensation Fund, which shall form part of the public account of India and shall be utilised for purposes specified in the said section. (2) All amounts payable to the States under section 7 shall be paid out of the Fund. (3) Fifty per cent. of the amount remaining unutilised in the Fund at the end of the transition period shall be transferred to the Consolidated Fund of India as the share

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that in case of shortfall in the amount collected in the Fund against the requirement of compensation to be released under section 7 for any two months period, fifty per cent. of the same, but not exceeding the total amount transferred to the Centre and the States as recommended by the Council, shall be recovered from the Centre and the balance fifty per cent. from the States in the ratio of their base year revenue determined in accordance with the provisions of section 5.] (4) The accounts relating to Fund shall be audited by the Comptroller and Auditor-General of India or any person appointed by him at such intervals as may be specified by him and any expenditure in connection with such audit shall be payable by the Central Government to

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Section 9 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 9 – Returns, payments and refunds. 9. (1) Every taxable person, making a taxable supply of goods or services or both, shall- (a) pay the amount of cess as payable under this Act in such manner; (b) furnish such returns in such forms, along with the returns to be filed under the Central Goods and Services Tax Act; and (c) apply for refunds of such cess paid in such form, as may b

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Section 8 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 8 – Levy and collection of cess. 8. (1) There shall be levied a cess on such intra-State supplies of goods or services or both, as provided for in section 9 of the Central Goods and Services Tax Act, and such inter-State supplies of goods or services or both as provided for in section 5 of the Integrated Goods and Services Tax Act, and collected in such manner as may be prescribed, on the recommendations of the Council, for the purposes of providing compensation to the States for loss of revenue arising on account of implementation of the goods and services tax with effect from the date from which the provisions of the Cent

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Section 7 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 7 – Calculation and release of compensation. 7. (1) The compensation under this Act shall be payable to any State during the transition period. (2) The compensation payable to a State shall be provisionally calculated and released at the end of every two months period, and shall be finally calculated for every financial year after the receipt of final revenue figures, as audited by the Comptroller and Auditor-General of India: Provided that in case any excess amount has been released as compensation to a State in any financial year during the transition period, as per the audited figures of revenue collected, the excess amount so released shall be adjusted against the compensation amount payable to such State in the subsequent financial year. (3) The total compensation payable for any financial year during the transition period to any State shall be calculated in the f

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ause (b). (4) The loss of revenue at the end of every two months period in any year for a State during the transition period shall be calculated, at the end of the said period, in the following manner, namely:- (a) the projected revenue that could have been earned by the State in absence of the goods and services tax till the end of the relevant two months period of the respective financial year shall be calculated on a pro-rata basis as a percentage of the total projected revenue for any financial year during the transition period, calculated in accordance with section 6. Illustration-If the projected revenue for any year calculated in accordance with section 6 is one hundred rupees, for calculating the projected revenue that could be earned till the end of the period of ten months for the purpose of this sub-section shall be 100x(5/6)=Rs.83.33.); (b) the actual revenue collected by a State till the end of relevant two months period in any financial year during the transition period s

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In case of any difference between the final compensation amount payable to a State calculated in accordance with the provisions of sub-section (3) upon receipt of the audited revenue figures from the Comptroller and Auditor-General of India, and the total provisional compensation amount released to a State in the said financial year in accordance with the provisions of sub-section (4), the same shall be adjusted against release of compensation to the State in the subsequent financial year. (6) Where no compensation is due to be released in any financial year, and in case any excess amount has been released to a State in the previous year, this amount shall be refunded by the State to the Central Government and such amount shall be credited to the Fund in such manner as may be prescribed. ****** Notes 1. Substituted vide Goods and Services Tax (Compensation to States) Amendment Act, 2018 w.e.f 01-02-2019 before it was read as "Central Board of Excise and Customs" – Statutory P

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Section 6 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 6 – Projected revenue for any year 6. The projected revenue for any year in a State shall be calculated by applying the projected growth rate over the base year revenue of that State. Illustration-If the base year revenue for 2015-16 for a concerned State, calculated as per section 5 is one hundred rupees, then the projected revenue for financial year 2018-19 shall be as follows

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Section 5 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 5 – Base year revenue. 5. (1) Subject to the provision of sub-sections (2), (3), (4), (5) and (6), the base year revenue for a State shall be the sum of the revenue collected by the State and the local bodies during the base year, on account of the taxes levied by the respective State or Union and net of refunds, with respect to the following taxes, imposed by the respective State or Union, which are subsumed into goods and services tax, namely:- (a) the value added tax, sales tax, purchase tax, tax collected on works contract, or any other tax levied by the concerned State under the erstwhile entry 54 of List-II (State Lis

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s of excise on medicinal and toilet preparations levied by the Union but collected and retained by the concerned State Government under the erstwhile article 268 of the Constitution; (g) any cess or surcharge or fee leviable under entry 66 read with entries 52, 54, 55 and 62 of List-II of the Seventh Schedule to the Constitution by the State Government under any Act notified under sub-section (4), prior to the commencement of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016: Provided that the revenue collected during the base year in a State, net of refunds, under the following taxes shall not be included in the calculation of the base year revenue for that State, namely:- (a) any taxes levied under any Act ena

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diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption; and (d) the entertainment tax levied by the State but collected by local bodies, under any Act enacted under the erstwhile entry 62 of List-II (State List) of the Seventh Schedule to the Constitution, prior to coming into force of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016. (2) In respect of the State of Jammu and Kashmir, the base year revenue shall include the amount of tax collected on sale of services by the said State Government during the base year. (3) In respect of the States mentioned in sub-clause (g) of clause (4) of article 279A of the Constitution, the amount of rev

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Base year. – Section 4 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 4 – Base year. 4. For the purpose of calculating the compensation amo

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Projected growth rate. – Section 3 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 3 – Projected growth rate. 3. The projected nominal growt

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Section 2 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 2 – Definitions. 2. (1) In this Act, unless the context otherwise requires,- (a) central tax means the central goods and services tax levied and collected under the Central Goods and Services Tax Act; (b) Central Goods and Services Tax Act means the Central Goods and Services Tax Act, 2017; (c) cess means the goods and services tax compensation cess levied under section 8; (d) compensation means an amount, in the form of goods and services tax compensation, as determined under section 7; (e) Council means the Goods and Services Tax Council constituted under the provisions of article 279A of the Constitution; (f) Fund means

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e Schedule appended to this Act; (m) State means,- (i) for the purposes of sections 3, 4, 5, 6 and 7 the States as defined under the Central Goods and Services Tax Act; and (ii) for the purposes of sections 8, 9, 10, 11, 12, 13 and 14 the States as defined under the Central Goods and Services Tax Act and the Union territories as defined under the Union Territories Goods and Services Tax Act; (n) State tax means the State goods and services tax levied and collected under the respective State Goods and Services Tax Act; (o) State Goods and Services Tax Act means the law to be made by the State Legislature for levy and collection of tax by the concerned State on supply of goods or services or both; (p) taxable supply means a supply of goods or

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Section 1 – Acts – GST (COMPENSATION TO STATES) – GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017 – Section 1 – THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) BILL, 2017 No. 15 of 2017 Dated: 12th April 2017 An Act to provide for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax in pursuance of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016. BE it enacted by Parliament in the Sixty

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Section 92 – Acts – LIABILITY TO PAY IN CERTAIN CASES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Section 92 – Liability of Court of Wards, etc. 92. Where the estate or any portion of the estate of a taxable person owning a business in respect of which any tax, interest or penalty is payable under this Act is under the control of the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager (including any person, whatever be his designation, who in fact manages

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SCHEDULE 03 [Section 7] – Acts – SCHEDULES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SCHEDULE 03 [Section 7] – SCHEDULE III [See Section 7] ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 1. Services by an employee to the employer in the course of or in relation to his employment. 2. Services by any court or Tribunal established under any law for the time being in force. 3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities; (b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity; or (c) th

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s entering into India. 8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. ; (ii) The Explanation shall be numbered as Explanation 1 and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:- Explanation 2.-For the purposes of paragraph 8, the expression warehoused goods shall have the same meaning as assigned to it in the Customs Act, 1962.] ****** Notes 1. Inserted vide Central Goods and Services Tax (Amendment) Act, 2018 w.e.f 01-02-2019

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Section 93 – Acts – LIABILITY TO PAY IN CERTAIN CASES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Section 93 – Special provisions regarding liability to pay tax, interest or penalty in certain cases. 93. (1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a person, liable to pay tax, interest or penalty under this Act, dies, then- (a) if a business carried on by the person is continued after his death by his legal representative or any other person, such legal representative or other person, shall be liable to pay tax, interest or penalty due from such person under this Act; and (b) if the business carried on by the person is discontinued, whether before or after his death, his legal representati

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nd severally, be liable to pay the tax, interest or penalty due from the taxable person under this Act up to the time of the partition whether such tax, penalty or interest has been determined before partition but has remained unpaid or is determined after the partition. (3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a taxable person, liable to pay tax, interest or penalty under this Act, is a firm, and the firm is dissolved, then, every person who was a partner shall, jointly and severally, be liable to pay the tax, interest or penalty due from the firm under this Act up to the time of dissolution whether such tax, interest or penalty has been determined before the dissolution, but has remain

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Section 94 – Acts – LIABILITY TO PAY IN CERTAIN CASES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Section 94 – Liability in other cases. 94. (1) Where a taxable person is a firm or an association of persons or a Hindu Undivided Family and such firm, association or family has discontinued business- (a) the tax, interest or penalty payable under this Act by such firm, association or family up to the date of such discontinuance may be determined as if no such discontinuance had taken place; and (b) every person who, at the time of such discontinuance, was a partner of such firm, or a member of such association or family, shall, notwithstanding such discontinuance, jointly and severally, be liable for the payment of tax and interest determine

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SCHEDULE 02 [Section 7] – Acts – SCHEDULES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SCHEDULE 02 [Section 7] – SCHEDULE II [See Section 7] ACTIVITIES 1[OR TRANSACTIONS] TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES 1. Transfer (a) any transfer of the title in goods is a supply of goods; (b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of services; (c) any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods. 2. Land and Building (a) any lease, tenancy, easement, licence to occupy land is a supply of services; (b) any lease or letting o

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use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or making available of such goods is a supply of services; (c) where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless- (i) the business is transferred as a going concern to another person; or (ii) the business is carried on by a personal representative who is deemed to be a taxable person. 5. Supply of services The following shall be treated as supply of services, namely:- (a) rent

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of Architecture constituted under the Architects Act, 1972; (20 of 1972.) or (ii) a chartered engineer registered with the Institution of Engineers (India); or (iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority; (2) the expression "construction" includes additions, alterations, replacements or remodelling of any existing civil structure; (c) temporary transfer or permitting the use or enjoyment of any intellectual property right; (d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software; (e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation,

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Section 91 – Acts – LIABILITY TO PAY IN CERTAIN CASES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Section 91 – Liability of guardians, trustees, etc. 91. Where the business in respect of which any tax, interest or penalty is payable under this Act is carried on by any guardian, trustee or agent of a minor or other incapacitated person on behalf of and for the benefit of such minor or other incapacitated person, the tax, interest or penalty shall be levied upon and recoverable from such guardia

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Section 90 – Acts – LIABILITY TO PAY IN CERTAIN CASES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Section 90 – Liability of partners of firm to pay tax. 90. Notwithstanding any contract to the contrary and any other law for the time being in force, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall, jointly and severally, be liable for such payment: Provided that where any partner retires from the firm, he or the fir

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Section 89 – Acts – LIABILITY TO PAY IN CERTAIN CASES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Section 89 – Liability of directors of private company. 89. (1) Notwithstanding anything contained in the Companies Act, 2013 (18 of 2013), where any tax, interest or penalty due from a private company in respect of any supply of goods or services or both for any period cannot be recovered, then, every person who was a director of the private company during such period shall, jointly and severally

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SCHEDULE 01 [Section 7] – Acts – SCHEDULES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – SCHEDULE 01 [Section 7] – SCHEDULE I [See Section 7] ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. 2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided

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Section 88 – Acts – LIABILITY TO PAY IN CERTAIN CASES – CENTRAL GOODS AND SERVICES TAX ACT, 2017 – Section 88 – Liability in case of company in liquidation. 88. (1) When any company is being wound up whether under the orders of a court or Tribunal or otherwise, every person appointed as receiver of any assets of a company (hereafter in this section referred to as the liquidator ), shall, within thirty days after his appointment, give intimation of his appointment to the Commissioner. (2) The Commissioner shall, after making such inquiry or calling for such information as he may deem fit, notify the liquidator within three months from the date on which he receives intimation of the appointment of the liquidator, the amount which in the opin

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