Goods and Services Tax

SCHEDULE I – Draft-Bills-Reports – SCHEDULES – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – SCHEDULE I – SCHEDULE I MATTERS TO BE TREATED AS SUPPLY WITHOUT CONSIDERATION 1. Permanent transfer/disposal of business assets. 2. Temporary application of business assets to a private or non-business use. 3. Services put to a private or non-business use. 4. Assets retained after deregistration. 5. Supply of goods and / or services by a taxable person to another taxable or non-ta

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Section 162E – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 162E – 162 E. Deduction of tax source Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under the earlier law and has also issued an invoice for the same before the appointed day, no deduction of tax at source under section 37 shall be made by the deductor under the said section where payment to the sa

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Section 162D – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 162D – 162D. Goods sent on approval basis returned on or after the appointed day Where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from th

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Treatment of branch transfers – Section 162C – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 162C – 162C. Treatment of br

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Section 162B – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 162B – 162B. Tax paid on capital goods lying with agents to be allowed as credit Where any capital goods belonging to the principal are lying at the premises of the agent on the appointed day, the agent shall be entitled to take credit of the tax paid on such capital goods subject to fulfillment of the following conditions: (i) the agent is a registered tax

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Section 162A – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 162A – 162A.Tax paid on goods lying with agents to be allowed as credit Where any goods belonging to the principal are lying at the premises of the agent on the appointed day, the agent shall be entitled to take credit of the tax paid on such goods subject to fulfilment of the following conditions: (i) the agent is a registered taxable person under this Act

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Section 162 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 162 – 162. Credit distribution of service tax by ISD Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as credit under this Act even if the invoice(s) relating to such services is received on or

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Section 161 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 161 – 161. Treatment of retention payments Notwithstanding anything contained in section 12 and 13, no tax shall be payable on the supply of goods and/or services made before the appointed day where a part consideration for the said supply is received on or after the appointed day, but the full duty or tax payable on such supply has already been paid under t

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Section 160 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 160 – 160. Progressive or periodic supply of goods or services Notwithstanding anything contained in section 12 and 13, no tax shall be payable on the supply of goods and/or services made on or after the appointed day if the consideration for the said supply has been received prior to the appointed day and the duty or tax payable thereon has already been pai

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Section 159 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 159 – 159. Treatment of long term construction / works contracts The goods and/or services supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act. (CGST Law) The goods and/or services supplied on or after the appointed day in pursuance of a contract ent

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Section 158 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 158 – 158. Treatment of the amount recovered or refunded pursuant to revision of returns (1) Where any return, furnished under the earlier law, is revised and if, pursuant to such revision, any amount is found to be recoverable from the taxable person, the same shall be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (CGST Law) (1) Where any return, furnished under the earlier law, is revised and if, pursuant to such revision, any amount is found to be recoverable from the taxable person, the same shall be recovered as

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Section 157 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 157 – 157. Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings (1) Where in pursuance of an assessment or adjudication proceedings instituted, whether before or after the appointed day, under the earlier law, any amount of tax, interest, fine or penalty becomes recoverable from the taxable person, the same shall be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (CGST Law) (1) Where in pursuance of an assessment proceedings instituted, whether before or after the appointe

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Section 156 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 156 – 156. Finalization of proceedings relating to output duty liability (1) Every proceeding of appeal, revision, review or reference relating to any output duty liability initiated before the appointed day, shall be disposed of in accordance with the provisions of the earlier law, and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall be recovered as an arrear of tax under this Act and amount so recovered shall not be admissible as input tax credit under this Act. (2) Every proceeding of appeal, revision, review or reference relating to any outp

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Section 155 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 155 – 155. Claim of cenvat credit to be disposed of under the earlier law (1) Every proceeding of appeal, revision, review or reference relating to a claim for CENVAT credit under the earlier law shall be disposed of in accordance with the provisions of earlier law, and any amount of credit found to be admissible to the claimant shall be refunded to him in cash, notwithstanding anything to the contrary contained under the provisions of earlier law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 and shall not be admissible as input tax credit under this Act. (C

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Section 154 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 154 – 154. Pending refund claims to be disposed of under earlier law Every claim for refund of any duty/tax and interest, if any, paid on such duty/tax or any other amount, filed by any person before the appointed day, shall be disposed of in accordance with the provisions of earlier law and any amount eventually accruing to him shall be paid in cash, notwit

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Section 153 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 153 – 153. Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract (1) Where, in pursuance of a contract entered into prior to the appointed day, the price of any goods and/or services is revised upwards on or after the appointed day, the taxable person who had removed / provided such goods and/or services may issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or debit note shall be deemed to ha

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after the appointed day, the taxable person who had removed / provided such goods and/or services may issue to the recipient a supplementary invoice or credit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or credit note shall be deemed to have been issued in respect of an outward supply made under this Act: Provided that the taxable person shall be allowed to reduce his tax liability on account of issue of the said invoice or credit note only if the recipient of the invoice or credit note has reduced his input tax credit corresponding to such reduction of tax liability. (CGST Law) (2) Where, in pursuance of a contract entered int

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Section 152 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 152 – 152. Finished goods removed for carrying out certain processes and returned on or after the appointed day Where any excisable goods manufactured in a factory had been removed without payment of duty for carrying out tests or any other process not amounting to manufacture, to any other premises, whether registered or not, in accordance with the provisions of earlier law prior to the appointed day and such goods, after undergoing tests or any other process (herein after referred to as the said goods ) are returned to the said factory on or after the appointed day, no tax shall be payable if the said

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ase may be, from the appointed day. (CGST Law) Where any goods had been despatched from the place of business without payment of tax for carrying out tests or any other process, to any other premises, whether registered or not, in accordance with the provisions of earlier law prior to the appointed day and such goods, after undergoing tests or any other process (herein after referred to as the said goods ) are returned to the said place of business on or after the appointed day, no tax shall be payable if the said goods are returned to such place within six months from the appointed day: Provided that the aforesaid period of six months may, on sufficient cause being shown, be extended by the competent authority for a further period not exce

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Section 151 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 151 – 151. Semi-finished goods removed for job work and returned on or after the appointed day (1) Where any semi-finished goods had been removed from the factory to any other premises for carrying out certain manufacturing processes in accordance with the provisions of earlier law prior to the appointed day and such goods after undergoing manufacturing processes (herein after referred to as the said goods ) are returned to the said factory on or after the appointed day, no tax shall be payable if the said goods are returned to the said factory within six months from the appointed day: Provided that the

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e premises of any registered taxable person for the purpose of supplying therefrom on payment of tax in India or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day. (2) The provisions of sub-section (1) shall apply only if the manufacturer and the job-worker declare the details of the goods held in stock by the job-worker on behalf of the manufacturer on the appointed day in such form and manner and within such time as may be prescribed. (CGST Law) (1) Where any semi-finished goods had been despatched from the place of business to any other premises for carrying out certain manufacturing processes in accordance with the provisions of earlier law prior to the appointed day

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person despatching the goods if such goods are liable to tax under this Act, and are not returned to him within a period of six months or the extended period, as the case may be, from the appointed day: Provided also that the person despatching the goods may, in accordance with the provisions of the earlier law, transfer the said goods to the premises of any registered taxable person for the purpose of supplying therefrom on payment of tax in India or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day. (2) The provisions of sub-section (1) shall apply only if the person despatching the goods and the job worker declare the details of the goods held in stock by the job worke

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Section 150 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 150 – 150. Inputs removed for job work and returned on or after the appointed day (1) Where any inputs received in a factory had been removed as such or removed after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of earlier law prior to the appointed day and such inputs, after completion of the job work, are returned to the said factory on or after the appointed day, no tax shall be payable if such inputs are returned to the said factory within six months from the appointed day: Provided that the a

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y the job worker on behalf of the manufacturer on the appointed day in such form and manner and within such time as may be prescribed. (CGST Law) (1) Where any inputs received at a place of business had been despatched as such or despatched after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of earlier law prior to the appointed day and such inputs, after completion of the job work, are returned to the said place of business on or after the appointed day, no tax shall be payable if such inputs are returned to the said place of business within six months from the appointed day: Provided that the aforesaid period of six months may, on su

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Section 149 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 149 – 149. Duty paid goods returned to the place of business on or after the appointed day (1) Where any goods on which duty had been paid under the earlier law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, no tax shall be payable thereon if such goods are returned to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer: Provided that tax shall be payable by the taxable person returning th

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Section 148 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 148 – 148. Exempted goods returned to the place of business on or after the appointed day Where any goods on which duty had been exempt under the earlier law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, no tax shall be payable thereon if such goods are returned to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer: Provided that tax shall be payable by the person returning the goods if

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Section 147 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 147 – 147. Amount payable in the event of a taxable person switching over to composition scheme (1) Where a taxable person who has carried forward the amount of eligible credit in a return, furnished under the earlier law, in respect of the period ending with the day immediately preceding the appointed day, switches over to the composition scheme under section 8, he shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on

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Section 146 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 146 – 146. Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from composition scheme (1) A registered taxable person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the earlier law (hereinafter referred to in this section as a composition taxpayer ), shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed date subject to the following

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scribed documents were issued not earlier than twelve months immediately preceding the appointed day. (2) The amount of credit under sub-section (1) shall be calculated in accordance with generally accepted accounting principles in such manner as may be prescribed. (3) The amount taken as credit under sub-section (1) shall be recovered as an arrear of tax under this Act from the taxable person if the said amount is found to be recoverable as a result of any proceeding instituted, whether before or after the appointed day, against such person under the earlier law. (CGST Law) (1) A registered taxable person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the earlier law (hereinafter referr

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able person is in possession of invoice and/or other prescribed documents evidencing payment of tax under the earlier law in respect of inputs held in stock and inputs contained in semi- finished or finished goods held in stock on the appointed day; and (vi) such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (2) The amount of credit under sub-section (1) shall be calculated in accordance with generally accepted accounting principles in such manner as may be prescribed. (3) The amount taken as credit under sub-section (1) shall be recovered as an arrear of tax under this Act from the taxable person if the said amount is found to be recoverable as a result of an

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Section 145 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 145 – 145. Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations (1) A registered taxable person, who was not liable to be registered under the earlier law or who was engaged in the manufacture of exempted goods under the earlier law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions: (i) such inputs and / or goods are used or intended to be used for making taxable supplies under this Act; (ii) the said taxable person was eligible for cenvat credit on receipt of such inputs and/or goods under the earlier law but for his not being liable for registrat

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he earlier law. Explanation.- For the purpose of this section and section 146, the expression eligible duties and taxes means- (i) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986); (ii) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985(5 of 1986); (iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978); (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957(58 of 1957); (v) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001(14 of 2001); (vi) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975); (vii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975); and (viii) the service

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) the said taxable person is eligible for input tax credit under this Act; (iv) the said taxable person is in possession of invoice and/or other prescribed documents evidencing payment of tax under the earlier law in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day; and (v) such invoice and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (2) The amount of credit under sub-section (1) shall be calculated in accordance with generally accepted accounting principles in such manner as may be prescribed. (3) The amount taken as credit under sub-section (1) shall be recovered as an arrear of tax under this Act from the taxable person if the said amount is found to be recoverable as a result of any proceeding instituted, whether before or after the appointed day, against such person under the earlier law. (SGST Law) – Statutory Provisions, Acts, Rules, Re

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Section 144 – Draft-Bills-Reports – TRANSITIONAL PROVISIONS – MODEL GST LAW – GOODS AND SERVICES TAX ACT, 2016 – Draft June 2016 – Section 144 – 144. Unavailed cenvat credit on capital goods, not carried forward in a return, to be allowed in certain situations (1) A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of the unavailed cenvat credit in respect of capital goods, not carried forward in a return, furnished under the earlier law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: Provided that the taxable person shall not be allowed to take credit unless the said credit was admissible as cenvat credit under the earlier la

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result of any proceeding instituted, whether before or after the appointed day, against such person under the earlier law. (CGST Law) (1) A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of the unavailed input tax credit in respect of capital goods, not carried forward in a return, furnished under the earlier law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed : Provided that the taxable person shall not be allowed to take credit unless the said credit was admissible as input tax credit under the earlier law and is so admissible under this Act: Explanation.- For the purposes of this section, the expression unavailed input ta

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