Goods and Services Tax

Section 37 – Draft-Bills-Reports – RETURNS – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 37 – 37. Matching, reversal and reclaim of input tax credit (1) The details of every inward supply furnished by a registered taxable person (hereinafter referred to in this section as the recipient ) for a tax period shall, in the manner and within the time prescribed, be matched- (a) with the corresponding details of outward supply furnished by the corresponding taxable person (hereinafter referred to in this section as the supplier ) in his valid return for the same tax period or any preceding tax period, (b) with the additional duty of customs paid under section 3 of the Customs Tariff Act,

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cy shall be communicated to both such persons in the manner as may be prescribed. (4) The duplication of claims of input tax credit shall be communicated to the recipient in the manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated under subsection (3) and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the recipient, in the manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. (6) The amount claimed as input tax credit that is found to be in excess on account of duplication of claims shall be added to the output tax liability o

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liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to the recipient by crediting the amount in the corresponding head of his electronic cash ledger in the manner as may be prescribed: PROVIDED that the amount of interest to be credited in any case shall not exceed the amount of interest paid by the supplier. (10) The amount reduced from the output tax liability in contravention of the provisions of sub-section (7) shall be added to the output tax liability of the recipient in his return for the month in which such contravention takes place and such recipient shall be liable to pay interest on the amount so added at the rate specified in sub-section (3) of section 45. – Statutory Provision

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Section 36 – Draft-Bills-Reports – RETURNS – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 36 – 36. Claim of input tax credit and provisional acceptance thereof (1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed in this behalf, be entitled to take credit of input tax, as self-assessed in his return and such amount shall be credited, on a provisional basis, to his electronic credit l

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Section 35 – Draft-Bills-Reports – RETURNS – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 35 – 35. First Return Every registered taxable person who has made outward supplies in the period between the date on which he became liable to registration till the date on which registration has been granted shall declare the same in the first return filed by him after grant of registration. – Statutory Provisions, Acts, Rules, Regulations, Taxati

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Section 34 – Draft-Bills-Reports – RETURNS – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 34 – 34. Returns (1) Every registered taxable person, other than an input service distributor or a nonresident taxable person or a person paying tax under the provisions of section 9, section 46 or section 56 shall, for every calendar month or part thereof, furnish, in such form and in such manner as may be prescribed, a return, electronically, of inward and outward supplies of goods and/or services, input tax credit availed, tax payable, tax paid and other particulars as may be prescribed on or before the twentieth day of the month succeeding such calendar month or part thereof. (2) A register

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or part thereof, furnish, in such form and in such manner as may be prescribed, a return, electronically, within thirteen days after the end of such month. (5) Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in such form and in such manner as may be prescribed, a return, electronically, within twenty days after the end of a calendar month or within seven days after the last day of the validity period of registration, whichever is earlier. (6) The Commissioner of [CGST/SGST] may, for valid and sufficient reasons, by notification, for such class of taxable persons as may be specified therein, extend the time limit for furnishing the returns under sub-section (1), (2), (3), (4) or, as the

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ffected during such tax period. (9) Subject to the provisions of sections 32 and 33, if any taxable person after furnishing a return under sub-section (1), (2) or, as the case may be, under subsection (4) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter, as the case may be, during which such omission or incorrect particulars are noticed, subject to payment of interest, where applicable and as specified in the Act: PROVIDED that no such rectification of any omission or incorrect particulars shall be allowed after the due dat

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Section 33 – Draft-Bills-Reports – RETURNS – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 33 – 33. Furnishing details of inward supplies (1) Every registered taxable person, other than an input service distributor or a nonresident taxable person or a person paying tax under section 9, section 46 or section 56, shall verify, validate, modify or, if required, delete the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section 32 to prepare the details of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have

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y be prescribed: PROVIDED that the Commissioner may, for valid and sufficient reasons, by notification, for such class of taxable persons as may be specified therein, extend the time limit for furnishing such details: PROVIDED FURTHER that any extension of time limit approved by the Commissioner of [Central/State] Goods and Services Tax shall be deemed to be approved by the Commissioner of [State/Central] Goods and Services Tax. (3) The details of supplies modified, deleted or included by the recipient and furnished under sub-section (2) shall be communicated to the supplier concerned in the manner and within the time as may be prescribed. (4) The details of supplies modified, deleted or included by the recipient in the return furnished und

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Section 32 – Draft-Bills-Reports – RETURNS – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 32 – CHAPTER- VIII RETURNS 32. Furnishing details of outward supplies (1) Every registered taxable person, other than an input service distributor, a nonresident taxable person and a person paying tax under the provisions of section 9, section 46 or section 56, shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services effected, during a tax period on or before the tenth day of the month succeeding the said tax period and such details shall be communicated to the recipient of the said supplies within the time and in the mann

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etails under sub-section (3) of section 33 or the details pertaining to inward supplies of input service distributor under sub-section (4) of section 333, shall either accept or reject the details so communicated, on or before the seventeenth day of the month succeeding the tax period and the details furnished by him under subsection (1) shall stand amended accordingly. (3) Any registered taxable person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched under section 37 or section 38, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay th

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Section 31 – Draft-Bills-Reports – TAX INVOICE, CREDIT AND DEBIT NOTES – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 31 – 31. Credit and debit notes (1) Where a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where services supplied are found to be deficient, the registered taxable person, who has supplied such goods and/or services, may issue to the recipient a credit note containing such particulars as may be prescribed. (2) Any registered taxable person who

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Section 30 – Draft-Bills-Reports – TAX INVOICE, CREDIT AND DEBIT NOTES – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 30 – 30. Amount of tax to be indicated in tax invoice and other documents Notwithstanding anything contained in this Act or any other law for the time being in force, where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate in all documents relating to

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Section 29 – Draft-Bills-Reports – TAX INVOICE, CREDIT AND DEBIT NOTES – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 29 – 29. Tax not to be collected by unregistered taxable person A person who is not a registered taxable person shall not collect in respect of any supply of goods and/or services any amount by way of tax under the CGST/SGST Act and no registered taxable person shall make any such collection except in accordance with the

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Section 5 – Draft-Bills-Reports – GST – Compensation to the States for Loss of Revenue – Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016] – Section 5 – 5. BASE YEAR REVENUE (1) Subject to the provision of sub-sections (2), (3) (4) and (5) the base year revenue for a State shall be the sum of the revenue collected by the State and local bodies during the base year, on account of the taxes levied by the respective State or Centre, net of refunds, with respect to the following taxes imposed by the respective State or Centre, which are subsumed into goods and services tax: (a) Value Added Tax (VAT), 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 List) of the Seventh Schedule to the Constitution, prior to bringing into effect the provisions of the Constitution (One Hundred and First Amendment) Act, 2016; (b) Central Sales Tax (C

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l and toilet preparations levied by the Union but collected and retained by the concerned State Government under the erstwhile Article 268 of the Constitution, prior to bringing into effect the provisions of the Constitution (One Hundred and First Amendment) Act, 2016; and (g) Any cess or surcharge levied by the State Government under any Act which is included in the definition of earlier laws as per section 2(39) of the State Goods and Services Act of the concerned State. (2) The Acts of the Central and State Governments under which the specific taxes are being subsumed into the goods and services tax shall be as notified. (3) The revenue collected during the base year in a State, net of refunds, on account of following taxes, shall not be included in the calculation of the base year revenue for that State: (a) Any taxes levied under any Act made under the erstwhile Entry 54 of List-II (State List) of the Seventh Schedule to the Constitution, prior to bringing into effect the provisio

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Hundred and First Amendment) Act, 2016.. (4) In respect of the State of Jammu and Kashmir, the base year revenue shall include the amount of service tax collected by the State Government. (5) In respect of States mentioned in article 279A(4)(g) of the Constitution, the amount of revenue foregone on account of exemptions given by the State Government to specific entities under the laws specified under sub-section (2) to promote industrial investment in the State would be included in the total base year revenue of the State, subject to the conditions as may be prescribed. (6) The base year revenue shall be calculated as per sub-sections (1), (2), (3), (4) and (5) on the basis of the figures of revenue collected net of refunds given in that year, as audited by the Comptroller and Auditor General of India. (7) In respect of any State, if any part of revenues mentioned in sub-sections (1), (2) and (3) are not credited in the Consolidated Fund of the respective State, the same shall be incl

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Section 28 – Draft-Bills-Reports – TAX INVOICE, CREDIT AND DEBIT NOTES – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 28 – CHAPTER- VII TAX INVOICE, CREDIT AND DEBIT NOTES 28. Tax invoice (1) A registered taxable person supplying taxable goods shall, before or at the time of,- (a) removal of goods for supply to the recipient, where the supply involves movement of goods, or (b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed: PROVIDED that the Central/State Government may, on the recommendation of the Council, by notification, specify the categories of goods and/or supplies in respect of which the tax invoice shall be issued within such time as may be prescribed. (2) A registered taxable person supplying taxable services shall, before or after the pro

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under the provisions of section 9 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed: PROVIDED that the registered taxable person may not issue a bill of supply if the value of the goods or services supplied is less than one hundred rupees except where the recipient of the goods or services requires such bill. (c) a registered taxable person shall, on receipt of advance payment with respect to any supply of goods or services by him, issue a receipt voucher or any other document, including therein such particulars as may be prescribed, evidencing receipt of such payment; (d) a registered taxable person who is liable to pay tax under sub-section (3) of section 8 shall issue an invoice in respect of goods or services received by him on the date of receipt of goods or services from a person who is not registered under the Act. (4) In case of continuous supply of goods, where successive statements of accounts or succe

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letion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply effected before such cessation. (7) For the purposes of sub section (4) and (5), the Central or a State Government may on the recommendation of the Council, specify, by notification, the supply of goods or services that shall be treated as continuous supply of goods or services. (8) Notwithstanding anything contained in sub-section (1), where the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, the invoice shall be issued before or at the time when it becomes known that the supply has taken place or six months from the date of removal, whichever is earlier. Explanation.- The expression tax invoice shall be deemed to include a document issued by an Input Service Distributor under section 21, and shall also include any revised invoice issued by the suppli

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BASE YEAR – Section 4 – Draft-Bills-Reports – GST – Compensation to the States for Loss of Revenue – Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [Novemb

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Section 27 – Draft-Bills-Reports – REGISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 27 – 27. Revocation of cancellation of registration (1) Subject to such conditions and in such manner as may be prescribed, any registered taxable person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty da

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Section 26 – Draft-Bills-Reports – REGISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 26 – 26. Cancellation of registration (1) The proper officer may, either on his own motion or on an application filed, in the prescribed manner, by the registered taxable person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where, – (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or (b) there is any change in the constitution of the

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ary registration under sub-section (3) of section 23 has not commenced business within six months from the date of registration. (3) Where any registration has been obtained by means of fraud, wilful misstatement or suppression of facts, the proper officer may cancel the registration with retrospective effect, subject to the provisions of section 37. (4) 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: PROVIDED that such notice may not be issued where an application is filed by the registered taxable person or his legal heirs, in the case of death of such person, for cancellation of registration. (5) The cancellation of registrat

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PROJECTED GROWTH RATE – Section 3 – Draft-Bills-Reports – GST – Compensation to the States for Loss of Revenue – Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 20

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Section 25 – Draft-Bills-Reports – REGISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 25 – 25. Amendment of registration (1) Every registered taxable person and a person to whom a unique identity number has been assigned shall inform the proper officer of any changes in the information furnished at the time of registration, or that furnished subsequently, in the manner and within such period as may be prescribed. (2) The proper

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Section 24 – Draft-Bills-Reports – REGISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 24 – 24. Special provisions relating to casual taxable person and non-resident taxable person (1) The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for a period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier and such person shall make taxable supplies only after the issuance of the certificate of registration: PROVIDED that the proper officer may, at the request of the said taxable person, extend the aforesaid period of ninety days by a further period

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Section 2 – Draft-Bills-Reports – GST – Compensation to the States for Loss of Revenue – Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016] – Section 2 – 2. DEFINITIONS (1) base year shall have the meaning assigned to it in section 4; (2) base year revenue shall have the meaning assigned to it in section 5; (3) compensation means an amount determined under section 7; (4) earlier law shall have the meaning assigned to it in the State Goods and Services Tax Act of the respective State; (5) Council means Goods and Services Tax Council established as per the Article 279A of the Constitution; (6) Goods and Services Tax Compensation Cess means the cess levied under section 8; (7) Goods and

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meaning as assigned to it in the Central Goods and Services Tax Act, 2016; (14) taxable supply means a supply of goods and/or services which is chargeable to the Goods and Services Tax Compensation Cess under this Act; (15) transition date shall mean, in respect of any State, the date on which the Goods and Services Tax Act of the concerned state comes into force; (16) transition period means a period of five years from the transition date; (17) words and expressions used but not defined in this Act and defined in the Central Goods and Services Tax Act, 2016 (… of 2016), shall have the meanings respectively assigned to them in that Act, in the context of GST Compensation Cess levied on taxable supplies of goods and/or services made i

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Section 23 – Draft-Bills-Reports – REGISTRATION – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 23 – CHAPTER – VI REGISTRATION 23. Registration (1) Every person who is liable to be registered under Schedule V of this Act shall apply for registration in every such State in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed: PROVIDED that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. (2) Notwithstanding anything contained in sub-section (1), a person having multiple business v

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gible for grant of registration. (5) Notwithstanding anything contained in sub-section (4), a non-resident taxable person may be granted registration under sub-section (1) on the basis of any other document as may be prescribed. (6) Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under this Act, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed. (7) Notwithstanding anything contained in sub-section (1), (a) any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nat

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dentity Number shall be deemed to have been granted after the period prescribed under sub-section (8), if no deficiency has been communicated to the applicant by the proper officer within that period. (11) Notwithstanding anything contained in sub-section (8), any rejection of application for registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a rejection of application for registration under the SGST Act / CGST Act. (12) The grant of registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a grant of registration or the Unique Identity Number under the SGST/CGST Act provided that the application for registration or the Unique Identity Number has not been rejec

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Section 1 – Draft-Bills-Reports – GST – Compensation to the States for Loss of Revenue – Draft – Goods and Services Tax (Compensation to the States for Loss of Revenue) Act, 2016 – [November 2016] – Section 1 – GOODS AND SERVICES TAX (COMPENSATION TO THE STATES FOR LOSS OF REVENUE) BILL, 2016 (No. __ of 2016) [__th ______, 2016] A Bill to provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as pe

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Section 22 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 22 – 22. Manner of recovery of credit distributed in excess Where the Input Service Distributor distributes the credit in contravention of the provisions contained in section 21 resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipient(s) along wit

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Section 21 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 21 – 21. Manner of distribution of credit by Input Service Distributor (1) The Input Service Distributor shall distribute, in such manner as may be prescribed, the credit of CGST as CGST or IGST and IGST as IGST or CGST, by way of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit are located in different States. (CGST ACT) (1) The Input Service Distributor shall distribute, in such manner as may be prescribed, the credit of SGST as SGST or IGST, by way of

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of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit, being a business vertical, are located in the same State. (SGST Act) (3) The Input Service Distributor may distribute the credit subject to the following conditions, namely: (a) the credit can be distributed against a prescribed document issued to each of the recipients of the credit so distributed, and such document shall contain details as may be prescribed; (b) the amount of the credit distributed shall not exceed the amount of credit available for distribution; (c) the credit of tax paid on input services attributable to a recipient of credit shall be d

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ecipient, during the relevant period, to the aggregate of the turnover of all recipients and which are operational in the current year, during the said relevant period. Explanation 1. -For the purposes of this section, the relevant period shall be- (a) if the recipients of the credit have turnover in their States in the financial year preceding the year during which credit is to be distributed, the said financial year; or (b) if some or all recipients of the credit do not have any turnover in their States in the financial year preceding the year during which the credit is to be distributed, the last quarter for which details of such turnover of all the recipients are available, previous to the month during which credit is to be distributed.

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Section 20 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 20 – 20. Taking input tax credit in respect of inputs sent for job work (1) The principal referred to in section 55 shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on inputs sent to a job-worker for job-work. (2) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job-work without their being first brought to his place of business. (3) Where the inputs sent for job-work are not

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contained in clause (b) of sub-section (2) of section 16, the principal shall be entitled to take credit of input tax on capital goods even if the capital goods are directly sent to a job worker for job-work without their being first brought to his place of business. (6) Where the capital goods sent for job-work are not received back by the principal within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the jobworker on the day when the said capital goods were sent out: PROVIDED that where the capital goods are sent directly to a job worker, the period of three years shall be counted from the date of receipt of capital goods by the job worker. (7) Nothing con

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Recovery of Input Tax Credit and Interest thereon – Section 19 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] –

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Section 18 – Draft-Bills-Reports – INPUT TAX CREDIT – MODEL GST LAW – Draft The Central / State Goods and Services Tax Act, 2016 – [November 2016] – Section 18 – 18. Availability of credit in special circumstances (1) A person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. (2) A person, who takes re

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IDED that the credit on capital goods shall be reduced by such percentage points as may be prescribed in this behalf (4) Where an exempt supply of goods or services by a registered taxable person becomes a taxable supply, such person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable: PROVIDED that the credit on capital goods shall be reduced by such percentage points as may be prescribed in this behalf. (

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registered taxable person who has availed of input tax credit switches over as a taxable person for paying tax under section 9 or, where the goods and / or services supplied by him become exempt absolutely under section 11, he shall pay an amount, by way of debit in the electronic credit or 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 and on capital goods, reduced by such percentage points as may be prescribed, on the day immediately preceding the date of such switch over or, as the case may be, the date of such exemption: PROVIDED that after payment of such amount, the balance of input tax credit, if any, lying in his electronic c

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