Goods and Services Tax

Section 2 – Draft-Bills-Reports – PRELIMINARY – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 2 – 2. Definitions In this Act, unless the context otherwise requires,- (1) account means an account bearing interest to the depositor, and includes a non-resident external account and a non-resident ordinary account; (2) appropriate State , in relation to a taxable person, means that State where he is registered or liable to be registered under section 23 of the Central Goods and Services Tax Act, 2016. Explanation: For the purpose of this Act, State includes Union Territory with Legislature; (3) banking company has the meaning assigned to it in clause (a) of section 45A of the Reserve Bank of India Act, 1934 (2 of 1934); (4) customs frontiers of India means the limits of the area of a customs station as defined in section 2 of the Customs Act, 1962 (52 of 1962) in which imported goods are ordinarily kept before clearance by customs author

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e services for its own needs; (9) Government means the Central Government; (10) import of goods with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India; (11) import of service means the supply of any service, where (a) the supplier of service is located outside India, (b) the recipient of service is located in India, and (c) the place of supply of service is in India; (12) India means,- (a) the territory of the Union as referred to in clauses (2) and (3) of Article 1 of the Constitution; (b) its territorial waters, continental shelf, exclusive economic zone or any other maritime zone as defined in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976); (c) the seabed and the subsoil underlying the territorial waters; (d) the air space above its territory and territorial waters; and (e) the installations, structures and vessels located in the continental shelf of India

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does not include the tax paid under section 9 of the CGST/SGST Act; (16) input tax credit means credit of input tax as defined in sub-section (15); (17) location of the recipient of services means: (a) where a supply is received at a place of business for which registration has been obtained, the location of such place of business; (b) where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed establishment elsewhere, the location of such fixed establishment; (c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and (d) in absence of such places, the location of the usual place of residence of the recipient; (18) location of the supplier of services means: (a) where a supply is made from a place of business for which registration has been obtained, the locati

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cation in the Official Gazette specify; (20) non-taxable online recipient means Government, a local authority, a governmental authority, an individual or any person not registered under section 23 of the CGST Act, 2016 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 243W of the Constitution; (21) online information and database access or retrieval services means services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their suppl

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called; (23) special economic zone shall have the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (24) SEZ developer means a person who, or a State Government which, has been granted by the Central Government a letter of approval under sub-section (10) of section 3 of the Special Economic Zones Act, 2005 (28 of 2005) and includes an Authority and a Co-Developer as defined under section 2 of the Special Economic Zones Act, 2005 (28 of 2005); (25) State means (26) supply has the same meaning as assigned to it in section 3 of the CGST Act, 2016; (27) tourist means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes; (28) output tax in relation to a taxable person, means the IGST chargeable under the Act on taxable supply of goods and/or services made by him or his agent and excludes tax payable by him on reverse charge basis; (29) zero-rated supply s

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Section 1 – Draft-Bills-Reports – PRELIMINARY – MODEL IGST LAW – Draft The Integrated Goods and Services Tax Act, 2016 – [November 2016] – Section 1 – THE INTEGRATED GOODS AND SERVICES TAX ACT, 2016 CHAPTER- I PRELIMINARY 1. Short title, extent and commencement (1) This Act may be called the Integrated Goods and Services Tax Act, 2016. (2) It extends to the whole of India. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint,

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Goods and Services Tax – Revised Draft Model GST Law – Section / Chapter Wise – TMI Updates – Highlights

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Goods and Services Tax – Revised Draft IGST Law – Section / Chapter Wise – TMI Updates – Highlights

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Draft GST Compensation Law – Goods and Services Tax – GST – Dated:- 26-11-2016 – Download PDF File – News – Press release

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Revised Draft IGST Law – November 2016 – Goods and Services Tax – GST – Dated:- 26-11-2016 – Download PDF File – News – Press release

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Revised Draft Model GST Law – November 2016 – Goods and Services Tax – GST – Dated:- 26-11-2016 – Download PDF File – News – Press release

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 26-11-2016 Last Replied Date:- 28-11-2016 – Enrolment Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key fields by the taxpayer in the Enrolment Application at the GST Common Portal. There is no deemed enrolment. All the tax payers shall visit the common portal and enroll themselves in the portal for all compliances. No fee is chargeable for such enrolment. Existing tax payer An existing taxpayer is an entity currently registered under any State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax Act. Existing taxpayers include taxpayers already registered under- Central Excise Service Tax State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT) Entry Tax Luxury Tax Entertainment Tax (except levied by the local bodies). Migration to GST GSTN shall migrate all such assessees/dealers to the GSTN network and shall issue GST

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atory PDF or JPEG 1 MB 4 Photograph of authorized signatory JPEG 100 KB 5 Opening page of pass book/statement containing bank account number, address of branch, address of the account holder and few transaction details. PDF or JPEG 1 MB Authorized signatory The following can be the authorized signatory- In case of proprietor – The proprietor or any person authorized by the proprietor; In case of partnership – Any authorized partner or any person authorized by the partners; In case of Company, LLP, Society or Trust – The person authorized by the Board or Governing body. In case there is a single Authorized Signatory for a business entity, the single Authorized Signatory will be assumed to be the primary Authorized Signatory. In case there are multiple Authorized Signatories for a single business entity, one Authorized Signatory needs to be designated as primary Authorized Signatory. The e-mail address and mobile number of the Authorized Signatory needs to be provided during enrolment. T

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the Enrolment Application at GST Common Portal without electronically signing it but it is needed to sign the application at a later date within the time allowed under the GST Act. Only signed Enrolment Applications shall be considered for issue of Final Registration Certificate. One can view the submitted application after login by accessing My Saved Applications at the GST Common Portal. Electronically signing the Enrolment Application using DSC is mandatory for enrolment by Companies, Foreign Companies, Limited Liability Partnership (LLPs) and Foreign Limited Liability Partnership (FLLPs). For other taxpayers, electronically signing using DSC is optional. One cannot submit the Enrolment Application if his DSC is not registered with the GST Common Portal. Therefore, he needs to register his DSC at the GST Common Portal by clicking the Register DSC menu. During registration of DSC with the GST Common Portal, the PAN of the DSC holder will be matched with the PAN database of the CBDT.

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process is completed. Application Reference Number Application Reference Number (ARN) is a unique number assigned to each transaction completed at the GST Common Portal. It will also be generated on submission of the Enrolment Application that is electronically signed using DSC. ARN can be used for future correspondence with GSTN. If ARN is not received within 15 minutes of submission of the Enrolment Application, an e-mail will be sent to the applicant with detailed instructions for further course of action. Rejection of enrolment application The enrolment application for enrolment under GST can be rejected in case incorrect details have been furnished or uploaded fake or incorrect documents have been attached with the Enrolment Application and the application is electronically signed. However, the applicant taxpayer will be provided reasonable opportunity of being heard where applicant taxpayer can present his or her viewpoints. Amendment to enrolment application The enrolment appli

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State Code. The next 10 digits represent the PAN of the tax payer. The thirteenth digit represents the entity number of the same PAN holder in a state. The Fourteenth digit represents the alphabet Z by default and the last digit represents – check sum digit. Certificate of registration A person, who gets provisional registration shall submit an application electronically in Form GST REG – 21, duly signed along with the information and documents specified in the application on the common portal either directory or through a Facilitation Centre, notified by the Board of Commissioner, within six months. If the information and particulars furnished in the application are found to be correct and complete, the proper officer shall issue a certificate of registration in Form GST REG – 06 and made available to the registered taxable person electronically on the Common Portal. Cancellation of provisional registration If the taxable person fails to furnish the information or the information fur

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3 of the Model Goods and Services Act. An existing ISD Taxpayer is required to apply afresh in the GST Common Portal for the State in which he desires to seek registration. For that he needs to inform your Central Jurisdictional Authority. Persons not having IT savvy In order to cater to the needs of tax payers who are not IT savvy, the following facilities shall be made available- Tax Return Preparer – A taxable person may approach the Tax Return preparer for assistance.The TRP will file the required application on the basis of information furnished to him by the taxable person; Facilitation Center – It shall be responsible for the digitalization and/or uploading of the forms and documents including summary sheet duly signed by the Authorized Signatory and given to it by the taxable person.After uploading the data on common portal using the ID and password of facilitation center, a print out of acknowledgement will be taken and signed by the facilitation centre and handed over to the

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 24-11-2016 Last Replied Date:- 25-11-2016 – Considering the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted. On inter-state transactions including imports, integrated GST (IGST) shall be levied and collected in lieu of CGST and SGST. Both the levels of Government have distinct responsibilities to perform

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mities/disasters, special provisions for certain States, etc. Its residual entry specifies any other matter relating to GST, as the Council may decide. Also, in terms of clause (6) of the Article 279A, while discharging the functions conferred by article 249A, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. Though the role of GST Council shall be recommendatory, its recommendations will carry a weight due to participation of centre and all states. According to the proposed administrative model, GST Council and proposed Central Board of Indirect Taxes shall work closely at the helm for administration of GST in India. Based on proposed model of organization under GST, following changes are expected – The administration structure post GST would be based on the principle of pooled sovereignty, mutual co-operation, cross reporting, meaningful co

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structure of scrutiny should be replaced with audit and scrutiny. There shall be mutual exchange of intelligence and joint audit if agreed by the state. There shall be a working arrangement wherein if the issue has monetary implication of ₹ 5 Lakhs or the amount as fixed by the GST Council , and if the issue is non-recurrent for the assessee, then the decision of the Commissioner Appeals in such cases should be accepted even if it is not in favour of the department and with the no precedence value. This exercise will also result in re-distribution of manpower and further this re-distribution shall be done in most transparent manner keeping in view of the talent, potential and skill sets of the staff. With this exercise, the infrastructure and vehicle issue to be re-considered in a fresh perspective rather than a traditional penny wise pound foolish attitude The reason for making the Regional head as the cadre controlling authority is the wide jurisdiction which enables every sta

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to Additional Secretary Revenue, as Member Secretary of GSTC, Member GST shall also be the Member Secretary to the GST Council for CGST and IGST related issues. Board through Member-GST may be the think tank to assist the Council in policy formulation in CGST and IGST matters. The members may have different portfolios such as – Member, GST (Secretary, GST Council ) Member, Customs Member, (IT, Policy & Infra) Member, Central Excise & Legacy Issues Member, P & V, Training Member, (P & J, Audit) Member (GST) will also act as Secretary to GST Council. Principal Chief Commissioners / DGITI or Anti-Evasion Directorate / Principal Secretaries of States may report to Member (GST). Member GST interaction with Principal Secretaries of States would be purely for operational requirements such as reports, data collection, joint action, pre-consultation for GST Council meeting etc. It is expected that it will strengthen cooperative federalism and will provide a platform for better c

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Goods and Services Tax – Started By: – Swapneswar muduli – Dated:- 24-11-2016 Last Replied Date:- 25-11-2016 – Dear Sir,As registration for GST has been started in various states i have some doubts Regarding this.We have 5 manufacturing unit in our state that it Daman and Due and our Other manufacturing Unit are at Gujarat and Uttarakhand.As our 5 units in Daman due than we got only one provisional User ID and pass word from Vat Department.So my query is whether we need to register in GST five our units separately or for five units one registration is ok under GST ?RegardsSwapneswar Muduli. – Reply By Jayaram Yarram – The Reply = Hi Swapneswar,For units in one state, you need one registration only. There is concept of seperate registration

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Goods and Services Tax – GST – Dated:- 23-11-2016 – Three draft GST related Laws – Model Goods & Service Tax; Integrated Goods and Service Tax (IGST) and Goods & Service Tax (Compensation to the States for loss of Revenue) were discussed at length for two days on 21st – 22nd November, 2016 in the Officers Level Meeting of the States and Centre held in national capital. Number of issues were resolved during the two day meeting. However, the States desired some more time to internally del

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 23-11-2016 Last Replied Date:- 24-11-2016 – GST may suffer at the cost of recent demonetization of high vale currency announced by the Government which came just before the scheduled winter session of Parliament from 16th November, 2016. To oppose demonetization, almost entire opposition has united to corner and question the Government. We have already witnessed loss of first week in the four week current session. The trailer came yesterday with the informal meeting of all Finance Ministers of states and union ending in just two hours on Sunday without any result or positive conclusion. Not only this, the two day meeting of the GST Council scheduled for 24-25 November, 2016

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e are two options being discussed now. The GST Council was earlier discussing five proposals for deciding on jurisdiction, but in the last meeting on November 4, arrived at two options – horizontal division and vertical division. 'Horizontal Division' would mean taxpayers would be divided both for administrative and audit purposes based on a cut off turnover. Those with a turnover over ₹ 1.5 crore would be administered both by the Centre and states, while those with below ₹ 1.5 crore would be administered solely by the State. 'Vertical Division', based on ratios, assigns taxpayers to a tax administration, Centre or State, for a period of three years for all purposes, including audit. It is learnt that the Centre

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 23-11-2016 – Chapter XIV of the Model Goods and Services Tax Act, 2016 (Act for short) provides for the demands and recovery of tax. When a demand can be raised by the Government? The tax is payable on self assessment basis. If the assessee pays the tax on self assessment correctly there will be no problem. If there is any short payment or wrong availment of credit then the Department will initiate action against the assessee to demand and recover the same through due process of law. The Act provides three circumstances for the determination of tax- Determination of tax not paid or short paid or erroneously refunded – Section 51; Tax collected but not deposited with the Central Government or State Government – Section 52; Determination of tax under Section 51 Section 51 provides two circumstances under which the demand can be raised- Determination of tax not paid or short paid or erroneously refunded or input tax credi

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Instead he may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for such periods other than those covered in the preceding para; The service of such statement shall be deemed to be service of notice on such person subject to the condition that the grounds relied upon for such tax periods are the same as are mentioned in the earlier notice; If the person on whom notice is issued, pays the amount of tax along with interest on the basis of his own ascertainment or as the tax as ascertained by the proper officer before the issue of show cause notice and inform the officer in writing of such payment. The proper officer, on receipt of information, shall not serve any notice or statement; If the amount paid by the person as above, falls short of the amount actually payable, the proper officer shall proceed to issue the notice as pointed out in the first point; If the person pays the tax along with

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erson chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made or who has wrongly availed or utilized input tax credit, by reason of fraud or any willful mis statement or suppression of facts to evade tax, requiring him to show cause why he should not pay the amount specified in the notice along with interest payable and a penalty equivalent to the tax specified in the notice; If there is a continuation of default as stated above for further period, the proper officer is not required to issue show cause notice. Instead he may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for such periods other than those covered in the preceding para; If the person pays the amount of tax along with interest payable and a penalty equivalent to 15% of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by t

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f annual return for the year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates or, as the case may be, within 5 years from the date of erroneous refund; If the person pays the tax along with interest payable and a penalty equivalent to 50% of the such tax within 30 days of the date of communication of the order, all proceedings in respect of the said tax shall be deemed to be concluded. General provisions relating to demand of tax Section 51C prescribes the procedure relating to demand of tax as detailed below- If the service of notice or order is stayed by an order of a Court or Tribunal, the period of such stay shall be excluded in computing the period of three or five years; If any Appellate Authority or Tribunal or Court concludes that the notice is not sustainable for the reason that the charges of fraud or any willful mis-statement or suppression of facts to evade tax has not been established against the person to whom the notice was

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ort paid or not paid shall be payable whether or not specified in the order determining the tax liability; The adjudication proceedings shall be deemed to be concluded if the order is not issued within three years or as the case may be within five years; The above said provisions shall be application to the recovery of interest which has not been paid or partly paid or erroneously refunded. Tax collected but not deposited with the Central or a State Government Section 52(1) provides that every person who has collected from any other person any amount as representing tax and has not paid the same to the Central Government or a State Government, shall forthwith deposit the same to the credit of the Central or a State Government, regardless of whether the supplies in respect of which such amount was collected are taxable or not. Section 51(2) provides that in such a case the proper officer may service on the person liable to pay such amount a notice requiring to show cause why the said am

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stayed by an order the Court or the Tribunal the period of such stay shall be excluded in computing the period one year. Section 51(8) provides that the proper officer, in his order, shall set out the relevant facts and the basis of the decision; Section 51(9) provides that the amount paid to the credit of the Central or the State Government shall be adjusted against the tax payable, if any, by the person in relation to the supplies. Section 51(10) provides that where any surplus is left after the adjustment the same shall either be credit to the Fund or refunded to the person, who has borne the incidence of such amount. Section 51(11) provides that the person who has borne the incident of tax amount may apply for the refund of the same. Tax wrongfully collected and deposited Section 52 provides that a taxable person who has paid CGST/SGST on a transaction considered by him an intra-state supply, but which is subsequently held to be an inter-state supply, shall upon payment of IGST, b

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Service Tax – By: – Mr. M. GOVINDARAJAN – Dated:- 22-11-2016 – The Finance Act, 1994 covers nearly 120 services in the service tax net up to the year 2012 during which negative list was introduced. As such all services except the services in the negative list and in the mega exemption list are liable for the levy of service tax. However, there are certain activities which are difficult to determine whether such activities would be classified as a service or not. Therefore the Government while introducing the negative list inserted a section in which certain services are declared as declared services . It is the deeming fiction of law. It provides the lawmakers to declare any service as declared service . Section 65B(22) of the Finance Act,1994 defines the term declared service as any activity carried out by a person for another person for consideration and declared as such under Section 66E. Section 66E provides that the following shall constitute declared services, namely,- renting o

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of any existing civil structure; (c) temporary transfer or permitting the use or enjoyment of any intellectual property right; development, design, programming, customization, adaptation, up gradation, enhancement, implementation of information technology software; agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods; activities in relation to delivery of goods on hire purchase or any system of payment by installments; service portion in the execution of a works contract; service portion in an activity wherein goods, being food or any other article of human consumption or any drink (whether or not intoxicating) is supplied in any manner as a part of the activity; assignment by the Government of the right to use the radio-frequency spectrum and subsequent transfers thereof.(introduced with effect from 14.05.2016). N

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t a consideration; Section 3(2) provides that Schedules in respect of matters mentioned therein, shall apply for determining what is, or is to be treated as a supply of goods or a supply of services. In Schedule II of Model GST Act, 2016, almost all the declared services in Section 66E of the Finance Act are found place, except the following- transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods; assignment by the Government of the right to use the radio-frequency spectrum and subsequent transfers thereof.(introduced with effect from 14.05.2016). Point 5 in Schedule II provides that the following shall be treated as supply of service – renting of immovable property; 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 re

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Cabinet Secretary Shri P.K. Sinha: Goods and Services Tax (GST) is an important milestone in the concept of cooperative federalism where the Centre and the States have come together to address an important national issue of complex indirect tax regime in the country; Successful implementation of GST can lead to this model of cooperative federalism being replicated in other spheres – Goods and Services Tax – GST – Dated:- 19-11-2016 – The Cabinet Secretary Shri Pradeep Kumar Sinha said that Goods and Services Tax (GST) is an important milestone in the concept of cooperative federalism where the Centre and the States have come together to address an important national issue of present complex indirect tax regime in the country. He said that t

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Goods and Services Tax – GST – Dated:- 19-11-2016 – The Cabinet Secretary Shri Pradeep Kumar Sinha will be chairing an interactive seminar on Goods and Services Tax (GST) today. The seminar is being organized for senior officers of the different Departments of the Government of India to familiarize them on the important features of GST.The Seminar is being organised by the GST Council in national capital. Introduction of Goods and Services Tax (GST) is the most important reform of indirect tax

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VAT and Sales Tax – Levy of VAT on mobile (telecom) services – The call charges per call will depend on plan tariff and call durations. This is only a service and there is no transfer of goods or sale

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 18-11-2016 – This chapter will focus on time of supply of goods and services vis a vis valuation of supply which includes goods and services. Both are very significant part of any business vis a vis taxation . Time is important for point of tax that when the liability to pay tax will arise on goods and service . Similarly Valuation on what value the tax shall be levied by Government. For valuing any goods what to include and not to include is subject of big discussion. This has all been incorporated in Section 12,13,14 and 15 of the MGL. Main basis of valuation is transaction value where the parties are not related. Important is when parties are related, what value shall be applied and how the same shall be considered in Determination of value of supply of Goods and Services Rule,2016. Let us address the issue one by one. Time of Supply of Goods The liability to pay CGST and SGST shall arise only at the time of supply of g

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ly of services The liability to pay CGST and SGST shall arise only at the time of supply of services. Time of supply of services shall be : Date of issue of invoice or receipt of payment which ever is earlier if invoice is issued in prescribed time Date of completion of services or receipt of payment whichever is earlier if invoice is not raised in prescribed time Where the above said clause do not apply, date on which recipient shows the receipt of services in his books. In case of continuous supply of services ; Due date of payment as per the contract whether the invoice is issued or not or any payment has been received or not by the supplier of services Where payment date is not mentioned in the contract, issue of invoice or receipt of payment whichever is earlier shall be the time of supply of services. Where the payment is linked to completion of some event , time of completion of that event In case where tax is payable on supply of services under reverse charge, earliest of the f

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ice shall be time of supply. Where payment is received before change of rate of tax and invoice is issued after the change of rate of tax, time of supply shall be date of receipt of payment In the case of taxable services has been provided after the change of effective rate of tax Where the payment is received after the change of rate of tax and invoice is raised before change of rate of tax, time of supply of services shall be date of date of receipt of payment. Where the invoice is raised after the change of rate of tax and payment is received before the change of rate of tax , time of supply shall be date of date of invoice. Where the invoice is raised and payment is received before the change of rate of tax , time of supply shall be earlier of the invoice or receipt of payment date. Value of Taxable Supply The value of supply of goods or supply of services shall be transaction value where the supplier and recipient of supplier is not related party Transaction value mentioned above

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time of supply provided such discount allowed as normal course of business and trade practice In the following situation or circumstances value of supply of goods or services can not be valued as mentioned in point no.1 means thereby transaction value Consideration is not money Supplier and recipient is related Reason to doubt the transaction value Business transaction done by pure agent, insurer, money changer, air travel agent and distributor or selling agent of lottery In the above case Rule 4 to 6 of the Determination of value of Supply of goods and services, Rule 2016 shall apply. Same is illustrated below Determination of value of supply of goods and services Rule,2016 Method of determination of Value [ Rule 3] Value of goods and services shall be transaction value Transaction value is value determined in monetary terms Transaction value shall be accepted even though the parties are related and not influenced the price In case of stock transfer from one business place to another

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expenses Residual Method [ Rule -6] Where the value of goods or supply can not be established under rule 4 & 5 as mentioned above , value shall be determined using reasonable means consistent with the principle and general provision of these rules . FAQ on Valuation of supply of goods and services What is transaction value? Transaction value refers to price actually paid or payable for supply of goods or services where the supplier and recipient are not related. Are there separate provision for valuation in SGST,CGST and IGST for goods and service ? No. Section 15 is common for all three taxes and also common for goods and services. Is reference to valuation required in all cases? No. Reference of valuation required only in cases listed in S. 15[4]. Weather post supplies discounts are to be included in transaction value ? Yes . unless linked to agreement that it is known at the time of supply. Weather pre supply discount allowed before or at the time of supply includable in transac

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 17-11-2016 Last Replied Date:- 18-11-2016 – Appeal to High Court Section 87 of the Model Goods and Services Tax Act, 2016 ( Act for short) deals with the procedure in filing appeal before High Court against the order of the Tribunal under Section 83 of the Act. The High Court may admit such appeal if it is satisfied that the case involves a substantial question of law. Matters for which no appeal lies Section 87(2) provides that no appeal shall lie to High Court against an order passed by the Appellate Tribunal if such order relates, among other things, to- a matter where two or more States, or a State and Center, have a difference of views regarding the treatment of transaction(s) being intra-state or inter-state; or a matter where two or more States, or a State and Center, have a difference of views regarding place of supply. Limitation Section 87(3) provides that the appeal before High Court shall be filed within180

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satisfied that a substantial question of law is involved inany case, it shall formulate that question; The appeal shall be heard only on the question of law so formulated by the High Court; The respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question; The High Court is having power to hear the appeal on any othersubstantial question of law not formulated by it, if it is satisfied that the case involves such question; The High Court shall decide the question of law formulated and deliver such judgment containing the grounds on which such decision is founded and may award such cost as it deems fit; The High Court may determine any issue which- has not been determined by the Appellate Tribunal; or has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law; The appeal shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with the opinion

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nder Section 87, in any case which, on its own motion or an oral application by or on behalf of the party aggrieved, immediately after passing of the Judgment or order, the High Court certifies to be a fit one for appeal to the Supreme Court. Section 88(2) provides that an appeal shall lie to the Supreme Court from any order passed by the Appellate Tribunal where such order is of the nature of the following- a matter where two or more States, or a State and Center, have a difference of views regarding the treatment of transaction(s) being intra-state or inter-state; or a matter where two or more States, or a State and Center, have a difference of views regarding place of supply. Section 89(1) provides that the provisions of the Code of Civil Procedure relating to the appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under Section 88 as they apply in the case of appeals from decrees of a High Court. Nothing in Section 89(1) shall be deemed to affect the

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Section 36 – Act – Appellate Tribunal – Prevention of Money-Laundering Act, 2002 – Section 36 – Distribution of business amongst Benches. 36. Where any Benches are constituted, the 1[Chairman] may, from time to time, by notification, make provisions as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench. Notes: 1. Substituted Vide Finance Act, 2016, w.e.f. 1-6-2016. Before it was read as: &quot

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 15-11-2016 – The Model Goods and Services Tax Act, 2016 ( Act for short) provides separate provisions for filing appeals for CGST and SGST. There is no provision for filing appeal by the Department for SGST law against the order of adjudicating authority. Instead of it revisionary power is given to the Commissioner. Appeal by the assessee Section 79(1) provides that any person aggrieved by any decision or order passed against him under this Act by an Adjudicating Authority, may file appeal to the prescribed First Appellate Authority. Section 2(4) defines the term adjudicating authority as any authority competent to pass any order or decision under this Act, but does not include the Board, the First Appellate Authority and the Appellate Tribunal. The Act does not provide the proper officer as adjudicating authority. This may come in the original Act or rules to be framed for this purpose. Section 2(45) defines the term

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by him; and a sum equal to 10% of the remaining amount in dispute arising from the said order, in relation to which the appeal has been filed. The Department is having right to apply to the First Appellate Authority for ordering a higher amount of pre deposit, not exceeding 50% of the amount in dispute, in a case which is considered by the Commissioner of GST to be a serious case . Serious case The explanation to Section 79 defines the term serious case as a case involving a disputed tax liability not less than ₹ 25 crores and where the Commissioner of GST is of the opinion, for reasons to be recorded in writing, that the department has a very good case against the tax payer. Amount in dispute The expression amount in dispute shall include- Amount determined under Section 46 – Assessment of non filers of returns; or Amount determined under Section 47 – Assessment of unregistered persons; or Amount determined under Section 48 – Summary assessment in certain special cases; or Amoun

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ounds of appeal was not willful or unreasonable; The First Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against; An order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order; Where the First Appellate Authority is of the opinion that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under Section 51; The order of the First A

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rders passed by a GST Officer against which appeal cannot be filed. The said list is furnished as below- An order of the Commissioner or other competent authority for transfer of proceeding from one officer to another officer; An order pertaining to the seizure or retention of books of account, register and other documents; or An order sanctioning prosecution under the Act; or An order passed under Section 55. (Payment of tax in installments) Revision Section 80(1) provides that subject to Section 93 and rules made there under, the Commissioner may on his own motion or upon information received by him, call for and examine the record of any proceeding under this Act and if he considers that any decision or order passed under this Act by any other subordinate to him is erroneous in so far as it is prejudicial to the interest of the revenue, 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 opportun

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Tribunal or as the case may be, the High Court is pending, the period spent between the date of the decision of the Appellate Tribunal and the date of the decision of the High Court, or as the case may be, the date of the decision of the High Court and the date of decision of Supreme Court, shall be excluded in computing the period. Section 80(6) provides that where the issuance of an order is stayed by the order of a Court or Tribunal, the period of such stay shall be excluded in computing the period of three years. Section 80(3) provides that the Commissioner may pass an order on any point which has not been raised and decided in an appeal before the expiry of a period of one year from the date of the order in such appeal or before the expiry of a period of three years whichever is later. Section 80(4) provides that the every order passed in revision shall, unless challenged before the higher forum, be final. Appeal by the Tribunal The appeal against the order of the First Appellate

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appeal where the tax or input credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined by such order is less than ₹ 1 lakh. Limitation period Section 82 (3) provides that every appeal shall be filed within three months from the date on which the order sought to be appealed against is communicated to the person preferring the appeal. Pre deposit Section 82 (7) provides that no appeal shall be filed unless the appellant has deposited- In full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and A sum equal to10% of the remaining amount in dispute arising from the said order, in relation to which the appeal has been filed. Amount in dispute The expression amount in dispute shall include- Amount determined under Section 46 – Assessment of non filers of returns; or Amount determined under Section 47 – Assessment of unregistered persons; or Amount determ

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nding that he may not have appealed against such an order or part thereof, file, within 45 days of the receipt of notice, a memorandum of cross-objections, verified in the prescribed manner, against any part of the order appealed against and such memorandum shall be disposed of by the Tribunal, as if it were an appeal; The Tribunal may admit an appeal or permit the filing of memorandum of cross objections after the expiry of the limitation, if it is satisfied that there was sufficient cause for not making it within that period; The Tribunal, if sufficient cause is shown, at any stage of hearing of an appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing; No adjournment shall be granted more than three times to a party during hearing of the appeal; The Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders as it thinks fit, confirming, modifying or ann

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Goods and Services Tax – GST – By: – Puneet Agrawal – Dated:- 15-11-2016 Last Replied Date:- 18-11-2016 – With effect from 08th November, 2016, The GSTN has initiated GST migration/enrolment proceedings for existing taxpayers. The gst portal is being hosted at the domain www.gst.gov.in which shall be a one-stop destination for filing and processing of GST (CGST, SGST & IGST). An existing taxpayer is an entity currently registered under any of the Acts as specified below : Central Excise Service Tax State Sales Tax / VAT (except exclusive liquor dealers if registered under VAT) Entry Tax Luxury Tax Entertainment Tax (except levied by the local bodies) The migration process has been initiated in a staggered manner. The schedule is annexe

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ompanies, Foreign Companies, Limited Liability Partnership (LLP), Foreign Limited Liability (FLLPs) and for others e-sign will also be allowed. Post submission, an Application Reference Number (ARN) shall be generated which can be used to track status of the enrolment application. On successful completion of enrolment application, a Provisional Registration Certificate shall be available on the common portal Dashboard on the appointed date (to be prescribed) in [Form GST REG – 21] which shall be valid for six months. Thereafter, the Final Registration Number under GST or GSTIN shall be made available subject to verifications, within 06 months from verification. It is noteworthy, that paramount consideration at this juncture must be to deter

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Goods and Services Tax – GST – By: – Puneet Agrawal – Dated:- 14-11-2016 Last Replied Date:- 15-11-2016 – Tax invoice Registered taxable person supplying taxable goods/ taxable services shall issue a tax invoice. Tax invoice shall include invoice issued by ISD, supplementary and revised invoice issued by a registered taxable person. Thus, the taxable person who has obtained registration under CGST Act and SGST Act can only issue tax invoice. Tax invoice shall be issued: in case of supply of taxable goods – at the time of supply In case of supply of taxable service – within prescribed time Thus tax invoice in respect of supply of taxable goods is to be issued even before the actual supply takes place i.e. even for advances. Tax invoice, in

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n taxable person shall be liable to pay penalty under Section 66 of the CGST Act/ SGST Act. Tax invoice is an essential document for recipient of goods/ services to avail input tax credit. Where any supply is made for a consideration, then person liable to pay tax shall prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which will form part of the price at which such supply is made. – Reply By Khagendranath Mahato – The Reply = As per Proviso of section 24(1) of the Act no credit note shall be issued by the supplier if the incidence of tax and interest on relevant supply has been passed by him to any other person. Requested to explain this situation with example. – Articles

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Goods and Services Tax – GST – By: – Puneet Agrawal – Dated:- 14-11-2016 Last Replied Date:- 18-11-2016 – With effect from 08th November, 2016, The GSTN has initiated GST migration/enrolment proceedings for existing taxpayers. The gst portal is being hosted at the domain www.gst.gov.in which shall be a one-stop destination for filing and processing of GST (CGST, SGST & IGST). An existing taxpayer is an entity currently registered under any of the Acts as specified below : Central Excise Service Tax State Sales Tax / VAT (except exclusive liquor dealers if registered under VAT) Entry Tax Luxury Tax Entertainment Tax (except levied by the local bodies) The migration process has been initiated in a staggered manner. The schedule is annexe

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ompanies, Foreign Companies, Limited Liability Partnership (LLP), Foreign Limited Liability (FLLPs) and for others e-sign will also be allowed. Post submission, an Application Reference Number (ARN) shall be generated which can be used to track status of the enrolment application. On successful completion of enrolment application, a Provisional Registration Certificate shall be available on the common portal Dashboard on the appointed date (to be prescribed) in [Form GST REG – 21] which shall be valid for six months. Thereafter, the Final Registration Number under GST or GSTIN shall be made available subject to verifications, within 06 months from verification. It is noteworthy, that paramount consideration at this juncture must be to deter

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 12-11-2016 – The Model Goods and Services Tax Act, 2016 ( Act for short) provides for appeals, revisions. Different procedures have been given in respect of CGST as well as SGST. In this article the provisions relating to appeals under the Act in respect of CGST will be discussed. Appeal by assessee Section 79(1) provides that any person aggrieved by any decision or order passed against him under this Act by an adjudicating authority, may appeal to the prescribed First Appellate Authority. Section 2(4) defines the term adjudicating authority as any authority competent to pass any order or decision under this Act, but does not include the Board, the First Appellate Authority and the Appellate Tribunal. The Act does not provide the proper officer as adjudicating authority. This may come in the original Act or rules to be framed for this purpose. Section 2(45) defines the term First Appellate Authority as an authority ref

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to condone the delay for a further period of one month if he is satisfied that the appellant is prevented by sufficient cause from presenting the appeal within the limitation period. Form for appeal Section 79(5) provides that every appeal shall be in the prescribed form and shall be verified in the prescribed manner. Pre deposit Section 79(6) provides that no appeal shall be filed unless the appellant has deposited a sum equal to 10% of the amount in dispute (not penalty) arising from the said order, in relation to which the appeal has been filed. Amount in dispute The expression amount in dispute shall include- Amount determined under Section 46 – Assessment of non filers of returns; or Amount determined under Section 47 – Assessment of unregistered persons; or Amount determined under Section 48 – Summary assessment in certain special cases; or Amount determined under Section 51 – Determination of tax not paid or short paid or erroneously refunded; Amount payable under the GST Credi

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to any ground of appeal not specified in the grounds of appeal, if he is satisfied that the omission of that ground from the grounds of appeal was not willful or unreasonable; The First Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against; An order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order; Where the First Appellate Authority is of the opinion that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show caus

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ws- The Tribunal shall be headed by a National President; The Tribunal shall have one branch for each State, which shall be called as the State GST Tribunal; Every State GST Tribunal shall be headed by a State President; Every State GST Tribunal shall consist of as many members (judicial), Members (Technical – CGST) and Members (Technical – SGST) as may be prescribed, to discharge the duties conferred by this Act; The qualifications, eligibility conditions and the manner of selection and appointment of the National President, the State President and the Members shall be as may be prescribed on the recommendations of the Council; Threshold limit Section 82(2) provides that the Tribunal shall not entertain an appeal where the tax or input credit involved or the difference in tax or input tax credit involved or the amount of fine, fee or penalty determined by such order is less than ₹ 1 lakh. Appeal by Department Section 82(3) provides that the Board may constitute Committees for th

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ising from the order, in relation to which the appeal has been failed. Amount in dispute The expression amount in dispute shall include- Amount determined under Section 46 – Assessment of non filers of returns; or Amount determined under Section 47 – Assessment of unregistered persons; or Amount determined under Section 48 – Summary assessment in certain special cases; or Amount determined under Section 51 – Determination of tax not paid or short paid or erroneously refunded; Amount payable under the GST Credit Rules; Amount of fee levied or penalty imposed. Procedure The following is the procedure involved in disposing the appeal by the Tribunal- Every appeal shall be filed within 3 months from the date on which the order sought to be appeal against is communicated to the Commissioner of GST or the person preferring the appeal; Every appeal shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a prescribed fee.No fee shall be payabl

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ing hearing of the appeal; The Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders as it thinks fit, confirming, modifying or annulling the decision or order; or may refer the case back to the First Appellate Authority or to the Original Authority, with such directions, as it may think fit, for a fresh adjudication or decision, after taking additional evidence, if necessary; The Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed; The copy of the order shall be send to the First Appellate Authority or to the Original Adjudicating Authority, the appellant, the jurisdictional Commissioner of CGST and the jurisdictional Commissioner of SGST; Every order passed by the Tribunal, unless appealed against shall be final. Rectification of mistake Section 82(11) provides that in an appeal for rectification of mistake application may be made before the Tribunal a

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