Goods and Services Tax

Goods and Services Tax – GST – By: – Vatsalya Bhardwaj – Dated:- 4-3-2017 Last Replied Date:- 6-3-2017 – Levy of taxes in case of composite contracts is a complex phenomenon. Most specifically, levy of tax on works contract has witnessed a plethora of cases. Specifically the chargeability of tax on service vis-à-vis goods has always been a matter of discussion before the courts in the present indirect tax regime. The courts have also taken different-different views and always the matter is being subject matter of confusion / litigations. However, with the introduction of GST it was expected that things will ease and long litigations under Works Contract will end and a definite law would be there. But the reality is far away from our expectations. Issues became more complicated, taxability is again under question and definitions are quite ambiguous. Let s first recall how VAT and Service Tax Laws explained Works Contract in their respective laws. Works Contract as per various St

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

greement for carrying out for cash, deferred payment or other valuable consideration, building, construction, fabrication, erection, installation, fitting out, improvement, modification, repair, renovation or commissioning of any moveable or immovable property; In Revised Model GST Law vide, Section 2(110) works contract has been defined as under:- Works contract means a contract wherein transfer of property in goods is involved in the execution of such contract and includes contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property. On comparison of aforesaid definitions in GST Law it can be noted that word movable property is deleted from the definition of works contract under revised Model GST Law. However, it was covered under the Model GST Law. That shows it has been intentionally deleted. Can this be suggested that movable prope

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ng the aforesaid definitions our question is where will repair or maintenance of movable and immovable property will be covered? Will it be a composite supply of goods and services naturally bundled with each other i.e. to say in Repair and maintenance work, goods and services of labour are naturally bundled and supplied together for the purpose of execution of a contract and if not here, then will it be covered under the definition of works contract given under revised Model GST law, that covers transfer in property in goods in execution of such contract and includes repair and maintenance of any immovable property. Now the word includes also leaves the definition as an open vault that may include other terms as well as against the earlier definition of works contract under GST Law which started with means and ended after including both movable and immovable properties. Now firstly it will be strenuous task for the tax professionals to advice their clients that whether it will be a co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

pply of services the dealer pay the necessary tax under GST on raising the invoice or receipt of payment. During the course of assessment proceedings the A.O. may call for details of material used in each of AMC and may take a view that in the cases where substantial material has been used same have to be considered as predominantly for supply of goods and not for services. For example, in case the company has entered into 100 contracts for AMC and has considered the same as contract for supply of services and subsequently the A.O. finds that in, say, 25 contracts the value of material used in rendering services was quite substantial as compared to price charged for AMC, he may take a view that these 25 contracts have to be considered as predominantly supply of material and on the same since rate of tax may be different the A.O. can raise additional demand. Accordingly, this will give a litigation and ambiguity in implementation of law. Case 2- Consideration as works contract. In case

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

to litigation. Though, it can be expected that the Government is in the process of further amending the revised Model GST Law and coming out with relevant rules. It is believed that while making further amendments or while drafting rules they will take care of such issues. – Reply By Ganeshan Kalyani – The Reply = Nice Article. In my view works contract is considered as service under GST. In such case why department should term it as composite supply. Composite supply is different from the term works contract service. Hence there should not be much differences.Thanks – Reply By Vatsalya Bhardwaj – The Reply = Sir,Thank you for your views and appreciation. The purpose of this article is to understand why the word 'movable property' has been deleted from the definition of 'works contract' under Revised Model GST Law and if it has been intentionally deleted then whether the work executed in relation to movable property will be covered under Works contract? Secondly, compo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 4-3-2017 Last Replied Date:- 6-3-2017 – What has changed in last few months that GST Council (GSTC) is said to have made up its mind to escalate GST's peak rate from 28% to 40% ? Perhaps nothing except the economic fallout of demonetization, adverse impact on consumption patterns and lower spending, lesser demand and dropping bottom lines. GDP at 7 percent !! Who is bothered except economists and politicians in power who want to make people feel that all right. GST Council is meeting for two days on 4-5 March 2017, ahead of Budget session of Parliament next week, wherein draft laws are excepted to be approved and recommended to Parliament. The Parliament is the legislati

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nd work for the mandate it has in public and national interest only. If this is allowed, (and cess will continue), no major relief may be there in GST and gradually, GSTC is likely to shift more and more items in 40% slab. If at all 40% tax rate is being thought of, GSTC should be honest enough to enlist the items to which such a rate be subjected to in future. Simple because tax hike in future beyond 28% would require Parliament's nod as reason for this is unwarranted and likely to be misused. This is also going back on earlier promise that rate will not be increased beyond 28%. Even the revised model law stipulates this. In a short span of few weeks, what has changed that the peak rate is being talked about to be enhanced to 40 percen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the sake of enabling provision. In all fairness, it should not be increased and if done, should be opposed tooth and nail by all stakeholders including apex chambers, professional bodies like ICAI, ICSI, ICWAI and trade bodies. GSTC can not be allowed to take us for granted. – Reply By Ganeshan Kalyani – The Reply = It is really a big concern for stakeholders. GST Council is consists of state finance ministers as its member and union finance minister as chair person. So when they decide about the issue may tend to think about the revenue their respective state should receive. Chair person may be convinced. Thus there should be an independent body apart from state finance ministers to decide on the rate of tax, tax issues etc. – Reply By As

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 4-3-2017 – Mumbai, Mar 3 (PTI) The proposed GST implementation may fuel growth in the USD 39 billion domestic auto ancillary industry following lower taxation of 18 per cent under the new regime, industry experts said. With the upcoming GST regime, the auto ancillary industry will get a boost. The auto ancillary industry's effective rate of tax, which is currently at 28 to 30 per cent, is expected to come down to 18 per cent upon implementation of GST, the experts said. They were speaking at a KDK Softwares-organised panel discussion on the impact of GST on auto ancillary industry. The industry is already reaping benefits of a favourable ecosystem in domestic market and increasing globalisation of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

11th GST Council Meeting Dated:- 4-3-2017 GST Council – Minutes – Circulars – GST – Minutes of the 11 th GST Council Meeting held on 4th March 2017 The eleventh meeting of the GST Council (hereinafter referred to as 'the Council') was held on 4 March 2017 in Vigyan Bhavan, New Delhi under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon'ble Members of the Council who attended the meeting is at Annexure 1 . The list of officers of the Centre, the States, the GST Council and the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2. 2. The following agenda items were listed for discussion in the eleventh meeting of the Council 1. Confirmation of the Minutes of the 10th GST Council Meeting held on 18 February 2017 2. Approval of the Draft Central Goods and Services Tax (CGST) Law as modified in accordance with the decisions of the GST Council and as vetted by the Ministry of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

dments to the draft Minutes. 4.1. The Hon'ble Minister from West Bengal stated that in paragraph 4.1.1, the word 'above' in the second sentence of his recorded version should be replaced by the word 'below'. The Council agreed to this suggestion. 4.2. The Hon'ble Minister from West Bengal highlighted that four issues recorded in the Minutes, had to be brought back to the Council for decision, namely: (i) carve out of export and import functions exclusively for the Central administration (recorded in paragraph 4.19 of the Minutes); (ii) to deem supplies to territorial waters as intra-State supply (recorded in paragraph 4.21 of the Minutes); (iii) to allow the benefit of the Composition scheme to restaurants, which was a supply of service (recorded in paragraph 8.4.3 of the Minutes); (iv) to examine the provision in Model GST Law for matching annual GST return of the taxpayer with his annual financial statement (recorded in paragraph 9.2.2 of the Minutes).

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Chief Minister of Puducherry stated that in the last Council meeting, the Hon'ble Minister from Karnataka had referred to supply of goods by restaurants. He observed that while a restaurant only supplied food, another connected feature was hotels offering accommodation and giving restaurant service. The Secretary stated that restaurants with annual turnover upto ₹ 20 lakh would be exempt from GST, while those with annual turnover between ₹ 20 lakh and ₹ 50 lakh would be covered under the Composition scheme. He added that hotels providing accommodation and restaurant service would normally have an annual turnover of more than ₹ 50 lakh and would thus pay GST at the normal rate. The Hon'ble Chief Minister of Puducherry stated that presently in his Union Territory, restaurants were charged to tax at the rate of 2% and observed that the proposed tax rate of 5% was on the higher side. 4.4. Shri P. Mara Pandiyan, Additional Chief Secretary (Taxes), Kerala

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

me Tax law would be sufficient compliance for the audit report required under the VAT Law. The Council agreed not to change the decision recorded in paragraph 9.2.2. of the Minutes. 4.5. The Hon'ble Minister from Uttar Pradesh pointed out that in paragraph 10.1.1. (iv) of the Minutes, it was recorded that retired officers shall be eligible for appointment as Technical Member (State) in Appellate Tribunal whereas as per their understanding, the same provision would also apply for the appointment of Technical Member (Centre). He suggested that the decision recorded in this paragraph should be amended to read as follows: Retired officers shall be eligible for appointment as Technical Member (State) as well as Technical Member (Centre) in the Appellate Tribunal. The Council agreed to this suggestion. 5. In view of the above discussion, for Agenda item 1 , the Council decided to adopt the Minutes of the 10th Meeting of the Council with the changes as recorded below: 5.1. In

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

g. He requested that the Members might also offer comments on these suggested amendments while discussing the draft CGST Law circulated as an agenda note for this meeting. 6.1. The ten amendments circulated during the meeting of the Council on 4 March 2017 are listed below (the changes are indicated in bold and italics and in strikethrough mode): i. Issue No. 1 Section 2 (a) (81) other territory includes territories other than those comprising in a State and those referred to in sub-clauses (a) to (e) of clause (114) of section 2; Note: Clauses (81) to (119) to be consequently renumbered and other consequential changes (referencing) to be carried. ii. Issue No. 2 Section 109(10) – In the absence of a Member in any Bench due to vacancy or otherwise, any appeal may, with the approval of the President or, as the case may be, the State President, be heard by a Bench of two Members: Provided that any appeal where the tax or input tax credit involved or

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed in such form as may be prescribed equivalent to the amount payable under clause (a) or clause (b): vi. Issue No. 6 Section 67(2) – Provided that where it is not practicable to seize any such goods, the proper officer, o r any officer authorized by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer: vii. Issue No. 7 Section 67(9) – Where any goods, being goods specified under sub-section (8), have been seized by a proper officer, or any officer authorized by him, under sub-section (2), he shall prepare an inventory of such goods in the manner as may be prescribed. viii. Issue No. 8 Section 168 – Explanation.- For the purposes of this section, the Commissioner specified in sub-section (90) o

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ion and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (To be handled through notification) x. Issue No. 10 – Section 19 – Tax wrongfully collected and paid to Central Government or State Government. (i) A registered person who has paid integrated tax on a supply considered by him to be an inter-state supply, but which is subsequently held found to be an intra-State supply, shall, be granted refund of the amount of integrated tax so paid in such manner and subject to such conditions as may be prescribed. 6.2. Shri Upender Gupta, Commissioner (GST Policy Wing), Central Board of Excise Customs (CBEC) broadly explained the changes made in the CGST Law between the draft of 26 November 2016 (which was the most recent version of the Draft Laws put in public domain) and the draft of 1 March 2017 presented as an Agenda Note for the 11th Meeting of the Council. These broad changes are recorded in Annexure 3 and were circula

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s required to pay interest only at the rate of 6% for delayed refund under Section 56 of the draft CGST Law. He observed that for late payment of refund, there should be a higher interest liability on the Government at par with what the taxpayer was liable to pay. The Hon'ble Chairperson cautioned that the Government's liability for interest payment should not be too high. The Secretary informed that even at the current rate of 6%, the Government's liability to pay interest for late refund of Income Tax during the last financial year was ₹ 7,000 crore and added that a cautious approach was required with regard to the Government's interest liability. The Hon'ble Minister from Uttar Pradesh observed that this additional burden of ₹ 7,000 crore on the Government was due to its own laxity and by giving refund more promptly, the Government could save ₹ 7,000 core. The Hon'ble Chairperson observed that in the Income Tax Department, the entire tax adm

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

id by the Government. The Commissioner (GST Policy Wing), CBEC informed that the clause of interest payment for delayed refund applied when the refund was paid beyond a period of 60 days from the date of filling the application whereas a taxpayer was required to pay interest only after 90 days of confirmation of the tax demand by the assessing officer. He also informed that the rate of interest paid by the Government was linked to its cost of borrowing which was around 6%. Shri Ritvik Pandey, CCT, Karnataka stated that the interest was also payable for refund of pre-deposit paid at the appellate stage. CCT, Gujarat observed that the taxpayer would have collected the amount equivalent to the tax from the buyer and therefore, he was not entitled to keep this amount. He cautioned that for taxpayers, fixing an interest rate below the prevailing bank rate, would lead to indiscipline. 6.2.4. The Hon'ble Chief Minister of Puducherry stated that the Government machinery should be given

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

est for the taxpayer and the Government. He stated that if needed, Government could be given additional time of 3 to 4 months to process the refund claim but thereafter the rate of interest for d~layed refund should be the same as the rate of interest for short payment of tax. Shri Manish Kumar Sinha, Commissioner, GST Council stated that differential rate of interest for the Government and the taxpayer was not an equity issue and that the Government rate of interest was linked to the rate at which it placed its funds to the Reserve Bank of India (RBI) or borrowed funds from the RBI. He also stated that the rate of interest for refunding a pre-deposit amount after completion of the litigation process should not be very high. He added that the rate of interest for a taxpayer should be linked to the market rate of borrowing as a taxpayer would have collected from the buyer, the amount equivalent to tax which was in effect Government's money. The Hon'ble Minister from Uttar Prades

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

r, it implied that the fault lay with the Government. He added that if the Government bore the implication of errors of judgement of its officers, it would make the administration more accountable. The Hon'ble Minister from Karnataka stated that one way to address this issue could be that the Government could pay a slightly higher rate of interest, say 9%, for certain categories of delayed refund which could be classified as routine delay but for refunds arising out of finalization of litigation process, the rate of interest could be kept at 6%. The Hon'ble Chairperson observed that where the Government did not refund money for 6 to 7 years due to litigation in Court, it retained and used the taxpayers' money for these years and for this, it should be liable to pay interest at the rate at which the Government would have paid ordinarily for its borrowing, i.e. the Government of India Security (G-SEC) rate. He further stated that if the assessee had to pay a confirmed demand,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

power and it had wide resources for generating revenue including borrowing from abroad at a very low rate of interest. He stated that for a private person, the cost of borrowing funds was high as he could not borrow from abroad at a much lower rate. He stated that the Government of India could borrow from abroad at a low rate of say 1.5%, lend it to Banks at the rate of 6% which in turn would lend to the customers at a much higher rate. He stated that this was a classic case in the USA during the decades of the 1960s and the 1970s. The Hon'ble Chief Minister of Puducherry observed that a taxpayer could take money from the consumer, use it and thus enrich himself and deposit it into the Government's account after litigation of 6 to 7 years when the Court ordered him to do so. He informed that more than ₹ 100 crore was not paid by the dealers of petroleum products in his Union Territory due to litigation in the Court. The Hon'ble Minister from Telangana stated that the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

another way to address this issue could be to keep the rate of interest as proposed, but have a mandatory fixed period within which refund must be paid. The Secretary stated that the period for payment of refund was already prescribed in the proposed Law. He suggested that one way to address this issue could be to provide that if the refund was not given within a certain period of the passing of an adjudication or appellate order where the order had acquired finality, the rate of interest for delayed refund would be 9% and in other cases of refund, where interest was payable, it should be paid at the rate of 6%. The Hon'ble Minister from Uttar Pradesh suggested that the rate should be more than 9%. The Hon'ble Chairperson cautioned against keeping the rate of interest too high. The Council agreed to the suggestion of the Secretary. 6.3. Shri Tuhin Kanta Pandey, Principal Secretary (Finance), Odisha stated that in Section 54(12), the reference to Section 50 was erroneous and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

implementing it through a notification. The Hon'ble Minister from Uttar Pradesh supported this suggestion. The Secretary stated that the situations of cross-empowerment would be dynamic in nature and to have flexibility, it need not be put in the Law. He added that the Council had already taken a decision regarding the distribution of taxpayers between the Central and the State administration and that this need not be put in the Law. The Hon ble Chairperson observed that the ambit of Section 6 would be in accordance with the Council's decision and that the content of notification would be as decided by the Council. He added that the Government was to only issue such a notification and not determine its content, which would be determined by the Council. He added that the power to vary the content of the notification should rest with the Council. The Hon ble Minister from West Bengal observed that the complexion of the Council could change in due course and, therefore, sug

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

al to the one suggested by the Hon'ble Minister from West Bengal and that the only difference was that the second clause had been made the first clause and the first clause had been made the second clause. He summed up with the observation that there shall be cross-empowerment under the Law and that its extent would be decided from time to time. 6.5.3. The Hon'ble Minister from Tamil Nadu observed that if cross-empowerment was vested on SGST officers through notification, then there was a chance that the decision already taken on dual control might be subject to frequent alterations. He, therefore, suggested that the notification route should be avoided and that, instead, it might be done . through Rules made under the relevant Law. He suggested the following revised formulation for Section 6 of the draft CGST Law: 'Without prejudice to the provisions of this Act, the Government shall, on the recommendations of the Council, and subject to such conditions as may be prescr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s an order under the SGST Act. He emphasised that it must be ensured that two orders were not passed by two authorities on the same issue and that this could be achieved by incorporating this idea in the Act rather than in the Rules or in a notification. He observed that this would give comfort to taxpayers. The Secretary observed that this formulation could be put in the relevant GST Rule. The Hon'ble Minister from Karnataka stated that it should be put in the Law and gave the following formulation for the same: 'Without prejudice to the provisions of this Act, officers appointed under the State Goods and Services Tax Act shall be authorised to be the proper officers for the purposes of this Act subject to such conditions as may be notified by the Government on the recommendations of the Council.' He further stated that under the cross-empowerment framework, it was essential that officer of only one government acted on an issue and on his doing so, officers of the other go

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s order under this Act.' 6.5.5. The Commissioner (GST Policy Wing), CBEC stated that the formulation suggested by the Hon'ble Minister from Karnataka was broadly the same as the original text in Section 7 the Model GST Law put in public domain in November, 2016. He informed that this provision was removed on the advice of the Union Law Ministry. He stated that the Law Ministry had explained that the CGST Law should not contain what was to be done under another law and that the phrase 'on the recommendations of the Council' was added to ensure that the provisions would be uniform in all the relevant laws. The CCT, Karnataka stated that the present formulation under Section 6 of the CGST Act only empowered the officers under the SGST Act to exercise the powers under the CGST Act but did not provide an assurance that on a dispute, only one officer would pass one order under both the Acts. He stated that it was very important for the public perception to assure that mult

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ainst an order covering demands under both CGST and SGST Acts, there should be a bar in the law for the SGST appellate authority to hear the same appeal. The Hon'ble Minister from Uttar Pradesh stated that the same principle should also apply for refund of taxes. The Secretary stated that the Law Committee should prepare a formulation giving effect to the understanding that that SGST officers shall be cross-empowered under the CGST Act in the Act itself and that only one order shall be passed for one dispute involving taxes under both the CGST and the SGST Act and that if a CGST officer passed an order, which also included demand for tax under the SGST Act, the SGST officer shall be barred from passing' order on the same dispute. The Council agreed to this suggestion. 6.6. The Principal Secretary (Finance), Odisha raised a question in relation to Section 60(5) of the draft CGST Act as to whether an assessee would need to file an application to get refund or whether he would

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ted out that the scope of the expression 'works contract' in Clause 6 of Schedule II of the Draft CGST Law was different from that contained in Section 2(118) of the Draft CGST Law. Shri Narayana Raju, . Secretary, Legislative Department stated that they would examine this issue further to align the wordings in Clause 6 of Schedule II and Section 2(118) of the draft CGST Law. The Council agreed to this suggestion. 6.9. The Hon'ble Minister from Tamil Nadu stated that in the 5th Meeting of the Council (held on 2-3 December 2016), it was decided to incorporate the definitions of 'intra-State supply of goods' and 'intra-State supply of services' in the Model GST Law instead of only . cross-referencing it to the IGST Act but this was not done. Commissioner (GST Policy Wing), CBEC stated that this issue was discussed in the Law Committee of officers and it was noted that the existing definition of 'intra-State supply of goods' and 'intra-State supp

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

;intra-State supply of services' in the CGST Act as it was already contained in the IGST Act. 6.1 0. The Hon'ble Deputy Chief Minister of Delhi pointed out that in Section 2(90) of the draft CGST Act, 'Commissioner' was not included in the definition of 'proper officer' and this could mean that in Section 6 of the draft CGST Act (dealing with cross-empowerment), Commissioner would not be a proper officer and therefore could not be cross-empowered. Commissioner (GST Policy Wing), CBEC stated that Sections 3, 4 and 5 of the draft CGST Act had reference to Commissioner. The Hon'ble Chairperson stated that the Law Committee could suitably redefine the term proper officer' in the draft CGST Act to also bring officers of the rank of Commissioner within its ambit. The Council agreed to this suggestion. 6.11. The Deputy Chief Minister of Delhi referred to his letter dated 4 March, 2017 addressed to the Hon'ble Chairperson and copies sent to all the Ho

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

during the 7th Meeting of the Council (held on 22-23 December, 2016) where the Central Government strongly argued for levying GST on sale of land and building but the Council did not agree to the same and it was decided to revisit this issue after one year of implementation of GST. 6.12. The Hon'ble Chairperson stated that the points raised by the Hon'ble Deputy Chief Minister of Delhi merited careful consideration and that it was desirable to complete the input tax credit chain by levying GST on sale of land and building and that this would also help in curbing generation of black money. He further observed that this would not impinge upon the existing taxation powers of the States on land and building. The Hon'ble Deputy Chief Minister of Delhi suggested that sale of land and building should be removed from Schedule III of the draft CGST Law and cautioned that if this issue was sealed today, then a big opportunity to curb black money would be lost. The Hon'ble Min

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ough a notification instead of incorporating it in the law. CCT, Karnataka stated that if a decision was taken to bring sale of land and building in GST, then several amendments would be required in the law such as Section 16 dealing with eligibility and conditions for taking input tax credit. He therefore suggested that the entry regarding sale of land and building should not be removed from Schedule Ill. The Hon'ble Chairperson stated that this issue could be taken up for decision after one year of implementation of GST. The Hon'ble Minister from Uttar Pradesh suggested to retain the decision taken in the 7th Meeting of the Council. The Hon'ble Minister from Andhra Pradesh stated that they would further study the proposal made by the Hon'ble Deputy Chief Minister of Delhi. The Council decided to retain the decision taken in the 7 th Meeting of the Council (held on 22-23 December, 2016). 6.13. Shri Shyamal Misra, CCT, Haryana stated that in the 10th Meeting of the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

al. 6.14. CCT, Haryana stated that in the 10th Meeting of the Council (held on 18 February 2017), during discussion on issue No. 4 and 5 of the Agenda Note of Agenda Item 3, it was decided to move the provision contained in Section 7(1)(b), namely, 'import of services for a consideration whether or not in course or furtherance of business' to the IGST Law but the same was not done. Commissioner (GST Policy Wing), CBEC explained that as the whole rovision of supply was in Section 7 of the draft CGST Law, the Law Committee suggested that it was desirable to keep this provision as part of Section 7 of the CGST Law. The Council agreed to this suggestion and accordingly agreed to modify its decision taken in the 10th Meeting of the Council (held on 18 February 2017). 6.15. The Hon'ble Minister from Karnataka stated that tax collection at source by electronic commerce operators [Section 52(1) of the draft CGST Act] was only a tracking mechanism to create a transact

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Law to indicate that the rate of tax collection at source by electronic commerce operators shall be upto 1%. 6.16. The Hon'ble Minister from Jammu Kashmir stated that in the draft CGST Law, there were references to several other laws like the Indian Penal Code (IPC), the Code of Criminal Procedure (Cr.PC.), Contract Act etc. which did not apply to the territory of Jammu Kashmir. On an enquiry from the Hon'ble Chairperson as to how this issue was handled in other Laws, the Secretary, Legislative Department clarified that in the other Laws, it was normally provided that the corresponding Law of the State of Jammu Kashmir shall apply. The Hon'ble Chairperson suggested that a provision could be put in the CGST Law that any reference to any legislation in the CGST Law shall include corresponding law of the State of Jammu Kashmir, if it applied there. The Council agreed to this suggestion. 6.17. CC T, Karnataka suggested that Section 31 and the Proviso to

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

pre-deposit at the level of the First Appeal and an additional 20% would be paid as pre-deposit at the level of the Second Appeal making the total pre-deposit as 30% of the disputed tax amount, and the question was whether this amount should be increased to 100% for filing an appeal before the High Court. Shri Rajiv Jalota, CCT, Maharashtra stated that in his State, no part payment of tax was allowed for filing appeal in High Court and that the demand of tax could also not be stayed by the High Court. He added that such demand could, however, be stayed under the High Court's Writ jurisdiction. The Hon ble Chairperson stated that the principle of depositing 100% tax before filing an appeal negated the very right of appeal. He observed that for a high value demand of tax, say ₹ 20 crore, it would be unviable to file an appeal in High Court. He further stated that the taxpayer would then take recourse to filing a Writ petition in the High Court and in all likelihood, th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

eat cases. He further observed that if it was a legal issue, the ratio of the decision could apply across the board. The Secretary stated that this issue was discussed at length in the 10th Meeting of the Council (held on 18 February 2017) and the monetary limit for not admitting an appeal before the Appellate Tribunal was reduced from ₹ 1 lakh to ₹ 50,000 and that this decision should not be revisited. The Council agreed to this suggestion. 6.20. The Hon ble Minister from Uttar Pradesh raised an issue as to how the officers of the States would get representation in the National Tribunal. The Secretary stated that the manner of appointment of the Members of the Appellate Tribunal shall be provided in the relevant GST Rules and the Council could take a decision when discussing the relevant Rules. 6.21. Dr. Reeta Vasishta, Additional Secretary, Legislative Department, Ministry of Law recalled the Council's decision to have a Single Member Bench of the Appellate Trib

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rights and obligations of the citizens without involving a Judicial Member. The Hon'ble Chairperson observed that the Member (Technical) of a Tribunal would generally be appointed from amongst the officers of the level of Commissioner, Chief Commissioner, or a retired senior officer and because of his long experience in taxation maters, he would be as knowledgeable, if not more, than a Judicial Member, many of whom might be drawn from the rank of advocates or Additional District Judges whose exposure to tax matters would be limited. He stated that in this view, there was no justification to insist that a single Member Bench should only consist of a Judicial Member. The Hon'ble Minister from West Bengal stated that there should be no insistence that a single Member Bench should only consist of a Judicial Member. The Council agreed that a single Member Bench of the Appellate Tribunal could consist of either a Member (Technical) or a Member (Judicial). 7. For agenda item 2, t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

[Section 2(91)] to also bring officers in the rank of Commissioner with in its ambit. 7.3. To align the language of the expression 'works contract' in Clause 6 of Schedule II and Section 2(118) of the draft CGST Law. 7.4. The Law Committee to reformulate the existing text of Section 6 of the draft CGST Act taking into account the suggestions of the Hon'ble Minister from West Bengal and the Hon'ble Minister from Karnataka to give effect to the understanding that SGST officers shall be cross-empowered under the CGST Act in the Act itself and that only one order shall be passed for one dispute involving taxes under both the CGST and the SGST Act and that if a CGST officer passed an order, which also included demand for tax under the SGST Act, the SGST officer shall be barred from passing order on the same dispute. 7.5. To modify the decision taken in the 10th Meeting of the Council (held on 18 February 2017), in respect of Issue No. 4 and 5 of the Agenda Note of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ion 56. 7.10. To modify Section 56 to provide that if refund is not given within thirty days of the passing of an adjudication or appellate order where the order has acquired finality, the rate of interest for delayed refund would be 9% and in other cases of refund, where interest is payable, it shall be paid at the rate of 6%. 7.11. In the proviso to Section 67(2), to add the words as indicated in bold italics below: Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorized by him , may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer: 7.12. In Section 67(9), to add the words as indicated in bold italics below: Where any goods, being goods specified under sub-section (8), have been seized by a proper officer , or any officer authorized by him , under sub-section (2), he shall prepare a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

il taken in its 10th Meeting and not to have a Proviso to Section 110(2) for the State Bench similar to that for the National Tribunal. 7.16. In Section 110(1 1), to add the clause as indicated in bold italics below: The Technical Member (Centre) or Technical Member (State) of the Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall be eligiblefor re- appointment. 7.17. In Section 1 18(1), to carry out the editorial correction as indicated in bold italics and strikethrough mode below: An appeal shall lie to the Supreme Court- (a) from any order passed by the National Bench and or Regional Benches of the Appellate Tribunal; or… 7.18. In Section 129(l)(c), to make the amendment as indicated in bold italics and strikethrough mode below: upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

he course or furtherance of business: Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services. 7.21. To delete Clause 4 of Schedule Ill which reads as follows and this matter to be handled through notification: 4. Services by a foreign diplomatic mission located in India or any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 7.22. To modify the decision of the Council taken in its 5th Meeting (held on 2-3 December 2016) and not to incorporate the definitions of 'intra-State supply of goods' and 'intra-State supply of services' in the CGST Act as it was already contained in the IGST Act. 7.23. To incorporate a provision in the CGST Law that any reference to any legislation in the CGST Law shall include c

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n Territories without Legislature. He stated that according to Article 366(26B) of the Constitution, State with reference to Articles 246A, 268, 269, 269A and Article 279A of the Constitution included a 'Union territory with Legislature;' and considering that Article 366 (26B) of the Constitution included only Union Territory with Legislature within the meaning of State, Union Territory without Legislature could not be considered as a State for the purpose of Goods and Service Tax. He added that since, Article 366 (26B) of the Constitution had a reference to Article 246A, 269A and 279A, 'Union Territory without Legislature' could not be covered by the SGST/IGST Act. He further stated that the other fact was that Section 2(102) of the CGST Act had defined State as State including a 'Union territory with Legislature'. 8.2. The Commissioner, GST Council stated that the power to levy GST was derived from Article 246A of the Constitution and under it, the Ce

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

', it would be covered in the definition of Union of India and therefore he did not visualize any legal difficulty in levying GST in Union Territories without Legislature. The Council agreed with this view. 8.3. The Hon'ble Minister from Jammu Kashmir stated that the definition of SGST Act contained in Section 2(21) of the draft IGST Law had a reference to Article 246A of the Constitution, which was not applicable to the State of Jammu Kashmir. He stated that Section 5 of the Constitution of Jammu Kashmir (relating to the extent of executive and legislative power of the State of Jammu Kashmir) provided that the executive and legislative power of the State of Jammu Kashmir extended to all matters except those with respect to which the Parliament of India had power to make laws for the State of Jammu Kashmir under the provisions of the Constitution of India. The Additional Secretary, Legislative Department suggested to modify the definition of the term 'State G

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

1975 and this implied that it would be levied on the value inclusive of Basic Customs duty. 8.6. The Hon'ble Minister from West Bengal stated that there appeared to be a contradiction between Section 12(8) and Section 13(9) of the draft IGST Law as the former referred to 'place of supply of services by way of transportation of goods, including by mail or courier… ', whereas the later referred to 'place of supply of services of transportation of goods, other than by way of mail or courier…'. He stated that mail or courier was included in Section 12(8) but was excluded in Section 13(9). Shri G.D. Lohani, Commissioner, CBEC explained that Section 12(8) of the draft IGST Law dealt with supplies within the country whereas Section 13(9) dealt with supplies where either the supplier of services or the recipient of services was located outside India. He explained that under the current Service Tax law, couriers dealing with international supply were not treated as tr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

to tourists was very cumbersome and required a lot of paperwork and procedural formalities. The Secretary stated that one option could be to remove this provision altogether but if it had to be retained, it could be operated only on the basis of the IGST model. The Hon'ble Chairperson stated that another option could be to restrict the facility of refund to international tourists to jewellery purchases. The Hon'ble Minister from Uttar Pradesh observed that there was no provision in the United States of America for refund of duties paid by an international tourist. CC T, Gujarat stated that several countries had a provision to refund the taxes paid by international tourists and that it would be desirable to retain enabling provision for it in the GST Law. The Council agreed to this suggestion. 9. For agenda item 3, the Council approved the draft IGST Law with the changes/decisions as recorded below. The Council also authorised the Law Committee of Officers to make minor corr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

pection of goods in movement and that it provided that the Government might specify a document or a device to be carried by a person in charge of a conveyance who carried goods exceeding a certain prescribed value. He recalled that this provision (the then Section 80 of the Model GST Law) was discussed in the 6th Meeting of the Council (held on 11 December, 2016), particularly in the context of having check-posts at the State borders and it was felt that in the GST regime, check-posts need not be kept at the borders to physically check goods but it was necessary to record information regarding movement of goods across the State borders. He added that it was also discussed that the movement of goods, whether within or across the State, would be with a meta-permit and that the vehicles could be checked anywhere and not necessarily at the borders. He stated that keeping this in view, GSTN needed authorisation for development of an e-Way Bill Application System. He stated that by using thi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

was deliberated in the Officers' Meeting held on 3 March 2017 and the general view that emerged there was that the Central and the State Governments should bear this cost. The Council agreed with this proposal. 10.2. Ms. Sujata Chaturvedi, CC T, Bihar stated that the Ministry of Road Transport and Highways (MoRTH) should also be consulted while developing the e-Way Bill System. The Secretary stated that a separate meeting would be held with MoRTH as also with the other relevant Ministries like Environment, Railway and Shipping, to discuss this issue and for not having check posts at the State borders. 11l. For agenda item 4, the Council approved the proposal to create Electronic Way Bills System Module as part of the GST System through GSTN and the cost for developing and operating the same would be borne by the Central and State Governments. Agenda Item 5: Date of the next meeting of the GST Council 12. The Hon'ble Chairperson stated that another meeting of t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

. The Hon ble Chairperson expressed his deep appreciation for the hard and long working hours put in by the officers of the Law Committee, which enabled the CGST and IGST Laws to be passed by the Council in this meeting. He observed that this was a milestone in the Centre-State relationship as, on an important issue like taxation, State officers played a very prominent role in drafting the law and correcting the language. The Hon'ble Chief Minister of Puducherry stated that the House placed on record its deep appreciation of the stellar role played by the Hon'ble Chairperson in steering the successful completion of the discussion on the CGST and IGST Laws. The Hon'ble Minister from West Bengal placed on record his appreciation for the hard work of the officers of the Law Committee and, in particular thanked the two co-convenors, Shri P.K. Mohanty, Consultant (GST), CBEC and Dr. P.D. Vaghela, CC T, Gujarat. He also placed on record his appreciation of the important role play

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rincipal Commissioner, Authorised Representative, CESTAT 3. Shri Upender Gupta, Commissioner (GST Policy Wing), CBEC 4. Shri G. D. Lohani, Commissioner of Central Excise, Faridabad 5. Shri Neeraj Prasad, Additional Commissioner (GST Policy Wing), CBEC 6. Shri Vishal Pratap Singh, Deputy Commissioner (GST Policy Wing), CBEC 7. Shri Ravneet Singh Khurana, Deputy Commissioner (GST Policy Wing), CBEC 8. Shri Siddharth Jain, Assistant Commissioner (GST Policy Wing), CBEC Ministry of Law 1. Ms. Rita Vashishtha, Additional Secretary, Legislative Department, Ministry of Law 2. Shri R. Srinivas, Additional Legislative Counsel, Legislative Department, Ministry of Law Goods Services Tax Network 1. Shri Jagmal Singh, Vice President, GSTN 15. The meeting ended with a vote of thanks to the Chair. (Arun Jaitley) Chairperson, GST Council – Circular – Trade Notice – Public Notice – Instructions – Office orders Tax Management India – taxm

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 6T of 2017 – Dated:- 4-3-2017 – Office of the Commissioner of sales Tax, Maharashtra State, 8th Flr., Vikrikar Bhavan, Mazgaon, Mumbai-400010 TRADE CIRCULAR No. JCST/Mahavikas/GST Enrollment/2016-17/B-1322-Mumbai, Dt, 04/03/2017 Trade Circular No. 6 T of 2017 Subject: Corrigendum to Trade Circular 5T of 2017 dt. 27-02-2017 and release of Phase 3 of GST Enrollment. As per Trade Circular 5 T of 2017, dated 27-02-2017, last dates related GST Enrollments are communicated to Trade. Following words from the second paragraph of point B of Trade Circular 5 T of 2017, dated 27-02-2017, related to disabling Provisional Login Id and Access Token of non-compliant phase 1 & phase 2 dealers, are hereby deleted. ,but needless to say, s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 2-3-2017 – New Delhi, Mar 2 (PTI) The GST Council has proposed to raise the peak tax rate to 20 per cent, from the current 14 per cent, in the model goods and services tax Bill to preclude the requirement of approaching Parliament for any change in rates in future. The change in the peak rate will not alter the 4-slab rate structure of 5, 12, 18 and 28 per cent agreed upon last year, but is only a provision being built into the model law to take care of contingencies in future, two officials in the know told PTI. The revised draft of model GST law, which was made public in November 2016, provides for a maximum rate of tax under the new regime at 14 per cent (14 per cent central GST and an equal state

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nt. The GST Council has decided to keep the upper cap higher at 20 per cent so that in future in case of need to hike tax rate, there is no need to approach Parliament for a nod and the GST Council can raise it, the officials said. This means the central GST and state GST can be up to 20 per cent each, leaving the scope for a maximum levy at 40 per cent. The 4-tier rate structure that has been decided will hold for now. By keeping the upper cap at 20 per cent, we are just keeping an enabling provision which the Council can exercise at a later date after deliberation, the official added. Mirroring the model GST law, the CGST, SGST and UTGST law will be firmed up by the Centre, states and Union Territories, respectively. The Centre plans to i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 2-3-2017 – GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF EXCISE & CUSTOMS NORTH BLOCK. NEW DELHI-110001 Tel. : +91-11-23092628 Fax : +91-11-23092346 D.O.No. IV (33) 16/2016 – Systems 28th February, 2017 My Dear Colleague, Subject: reg. Please refer to my DO letter IV(33) 16/2016-Systems dt. 27th Jan, 2017 on the above subject regarding setting up GST Migration Seva Kendras for smooth transition of existing taxpayers to GST. 2. The process of migration to GST has been going since 20.01.2017 in Central Excise (when all Provisional IDs were made available to taxpayers via ACES website) and since 09.02.2017 in Service Tax. This migration process is for CE/ ST taxpayer

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

on figure is in range of 50% to 90% for majority of States/UTs, the migration with respect of Central Excise/Service Tax assessees through CBEC is a paltry 2.94% in C.E. & 8.22% in S.T. 5. The information on migration of CE/ST Assessees is available on CBEC Antarang portal with Zone wise list of all CE/ST taxpayers who have been issued provisional IDs and list of taxpayers who have enrolled on GST. The enrolment list is updated on a daily basis. 6. I would urge all field formations to conduct more seminars and training in local language to encourage taxpayers to migrate early, by 31st March, 2017. Advertisements may also be brought out in local newspapers, TV Channels, FM Radio channels, etc in vernacular to ensure greater reach. 7. DG

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 1-3-2017 Last Replied Date:- 13-3-2017 – Can anyone say what are the preliminary steps and cautions to be taken to get ready for GST. – Reply By KASTURI SETHI – The Reply = Update yourself with daily dose of GST on TMI and wait for enactment. Uncertainty is still there.Any change can take place before enactment of GST. – Reply By YAGAY AND SUN – The Reply = You may enlist all your transactions which are being conducted in current scenarios and simulate it in GST scenarios to know the effect and savings etc. Say on stock transfer, in GST you would have to pay the IGST. Further, if stock are lying in the Depot more than of one year then you cannot pass on the taxes. Start collecting all statutory forms. Submit timely proof of export. Make changes in Power of attornies to incorporate the phrase GST. Attend seminars, trainings etc. Check the feasibilities of the very existence of depot/warehouses/godown in GST Scenarios.M

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

sis would be submitted when the final GST Law will come in force.Regards,YAGAY & SUN – Reply By KASTURI SETHI – The Reply = Dear All Experts,. One nation, one tax does not mean 5 slabs. What ever may be reason or basis or background. Peak rate 20 % for IGST 20 % for CHEST. 40 %. When GST implemented, chaos is feared. So many registrations. How justified ? So many problems are in the offing. – Reply By KASTURI SETHI – The Reply = Let us see which way the wind blows. Whether it proves 'ease of doing business' or disease of doing business ? – Reply By KASTURI SETHI – The Reply = Rectification pl. Pl. read SGST in place of CHEST. – Reply By Ganeshan Kalyani – The Reply = I agree with Sri Kasturi Sir's view.Further, the big corporates are getting tax impact study done from consultants who are charging good amount. The fun is they do the work in assumptions. Why are they assuming? Simple the law is on draft stage. Only when it get final they can give their final advise.What y

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Services Tax (GST) regime has been launched. Through the portal, businesses can ascertain the impact of GST on their business, profits and revenues and also understand steps for smooth transitioning to the new indirect tax regime that is likely to be rolled out from July, Reina Consulting, which has launched the website, said in a release.By using free basic tools, small traders, service providers and manufacturers can determine their financial gains under GST on a real-time basis by simply inserting their existing purchase and sale details, Ankur Jain, the Partner of the firm, said. Large businesses can use advanced tools on the portal, gstimpact.com, for obtaining a detailed report on GST's impact, the company said.The report highlights various factors contributing to the gains apart from advisory on vendor negotiation, logistics management, and vendor re-negotiation under GST regime. Reina Consulting claims to have a team of indirect tax professionals with vast experience. – Re

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 1-3-2017 Last Replied Date:- 6-3-2017 – What is Zero rated supply and what is the benefit and implication of the such supply. Just look at the provision of the same provided in Revised GST Law and IGST Law As per revised GST Law Zero rated Supply has been provided in Section 2(111) Zero rated supply means supply of any goods and /or services in terms of section 15 of the IGST Act, 2016; and As per revised IGST Law how the Zero rated supply has been defined in Section-2(29) Zero rated supply shall have the meaning assigned to it under Section 15 ; and But there is typographical error in both the definitions under both laws as the Zero rated Supply is defined in Section 16 of the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Z Developer or SEZ unit receiving zero rated supply , can claim refund of IGST if paid by supplier. Consequences of Tax wrongly Deposited with Central or State Government. Taxable person who wrongly deposited the IGST on supply considered by him as inter-state supply instead of intra-state supply , shall be refunded IGST so paid by him wrongly subject to the condition as may be prescribed. Taxable person who considered the transaction as intra-state and later found to be inter State shall not be liable to pay any interest on the amount of IGST. Law is silent on the first mistake where TP has paid tax under IGST and where he need to pay SGST and CGST . Whether he need to pay interest on amount of tax payable as SGST and CGST. About the Autho

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

be claimed and it appears that IGST is payable separately. Please clarify. – Reply By Sanjeev Singhal – The Reply = as per Section 19 of IGST , if IGST deposited wrongly shall be refunded. and if CGST is paid instead of IGST ,no interest shall be paid under IGST. – Reply By Ganeshan Kalyani – The Reply = If both the provision under section 19 and 90 read together then it is clear that provision talks about both interest and refund is case of wrong payment. That is, if IGST is paid wrongly instead of CGST /SGST then IGST wrongly paid will be refunded as section 19 and interest on delay payment of CGST/ SGST need not be paid as per section 70. And, if CGST/ SGST is paid wrongly instead of IGST then interest need not be paid at the time of pa

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 1-3-2017 Last Replied Date:- 5-3-2017 – Composition Levy Composition levy has been in vogue in indirect taxes to address the compliance issues vis-a-vis revenue in case of small business units or specific business units having complexity in determination of valuation of taxable amount. Under GST regime, there is also a concept of composition levy. An alternate levy for small businesses, whose aggregate turnover in financial year doesn't exceed ₹ 50 lakh, composition levy in lieu of tax will be payable at a rate not less than 2.5 per cent in case of manufacturer and 1 per cent for others (basically traders). Under GST regime, 'aggregate turnover' includes the aggregate value of- all taxable supplies, exempt supplies, exports of goods and/or services and inter-State supplies of a person having the same PAN, to be computed on an all India basis However, following amounts will be excluded – Taxes, if any,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

oods valuing ₹ 30 lakh. He also supplied exempt goods valuing ₹ 10 lakh. He also supplied goods in inter-State valuing ₹ 10 lakh. During this period, Mr. A returned goods valuing ₹ 5 lakh to the supplier from whom he had received such goods. In this case, the outward turnover of A would be ₹ 55 lacs (30 + 10 + 10 + 5). Whereas his aggregate turnover would be ₹ 50 lacs i.e ₹ 55 lacs – ₹ 5 lacs. Registration under Composition Registration as taxable person is compulsory to opt for the scheme. Minimum exemption limit under GST will be ₹ 20 lakh and for special category states (north eastern and hill States), it will be ₹ 10 lakh. Further, composition levy is to be applied on an all India basis as per PAN. It would mean that all the registrations across India belonging to same PAN shall have to avail the scheme. If the aggregate turnover exceeds ₹ 50 lakh, the scheme will be deemed to be withdrawn. Restrictions for the Compo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

II) specifically allowed the composition scheme only to supply of goods and not services. It may be noted that as per Schedule II, all the supplies effected as works contract (including real estate, construction contracts) would be regarded as services and not goods. For the small dealers in majority of states who are already operating within the existing turnover limit of ₹ 50 lakh, the impact may not be much. Assessees may find composition scheme beneficial where turnover is upto ₹ 50 lakh. However, turnover includes exempt turnover and exports. It is not taxable turnover. Business with multi-State business under the same PAN may find it difficult to compute aggregate turnover correctly. Works contracts shall be treated as services in GST and as such, will not be allowed composition levy whereas presently, works contracts are allowed composition under VAT and abatement under Service Tax law. (To be continued……) – Reply By Ganeshan Kalyani – The Reply = Composition sch

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 28-2-2017 Last Replied Date:- 28-2-2017 – Can any one say the meaning of Check sum digit (last number of Application reference number) under GST migration. – Reply By YAGAY AND SUN – The Reply = A check digit is a form of redundancy check used for error detection on identification numbers, such as bank account numbers, which are used in an application where they will at least sometimes be input manually. It is analogous to a bi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 28-2-2017 Last Replied Date:- 28-2-2017 – There are more than sixty million business enterprises in India with about just one million incorporated and few thousand listed companies. The majority of business are covered under SME or MSME segment including traders & retailers. This sector is mainly specialized in the production, trading and retailing of consumer commodities and providing services to consumers. The implementation of GST is certainly going to affect this sector and the employees associated with it. Under the present excise laws, no duty is required to be paid by a manufacturer having a turnover of less than ₹ 150 lakh. Under Service Tax laws threshold exemption scheme is available for small service providers having aggregate value of ₹ 10 lakh in the preceding financial year. Under Vat laws such exemption varies from State to State. Therefore currently small scale providers enjoy a basic exe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ng to be beneficial to the small business as in GST many taxes will be subsumed leading to lesser taxes, lower compliance cost and above all, there will be no tax cascading. Taxable Territory Unlike the present Service Tax law, GST law shall extend to whole of India including the State of J & K. Therefore, if small traders/retailers supply goods/services in state of J&K, then it will subject to levy of GST. Likewise supply of goods/services to SEZ and exports shall be considered as zero rated supply. However, it is proposed that import of goods / services shall be subject to Integrated GST (IGST). Therefore, supply of goods and services by traders and retailers like electronic equipments, apparels, event management related services etc. in state of Jammu & Kashmir shall also be subject to levy of GST. Taxable Person For GST, taxable person means a person who is registered or liable to be registered under Schedule-V of the model law. A person, who has obtained or is required

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

377; 10 lakhs based on the aggregate threshold limit of ₹ 10 lakh and no Service Tax is payable in such cases. In the GST regime, the limit of threshold exemption will be enhanced to ₹ 20 lakh on all India basis except in case of north-eastern and hilly States (total 11 States) where it will be ₹ 10 lakhs. These States are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttarakhand. For this purpose, definition of 'aggregate turnover' has been provided in section 2(6) of the GST law which is different from the existing one. Since under GST regime, the limit of threshold exemption gets reduced from ₹ 1.50 crore to ₹ 10 lakh or 20 lakh, it may adversely affect the small scale traders & retailers in case of goods. However, for services, it is beneficial. Small business may not be directly impacted by GST as there is a threshold exemption to businesses up to an annual turno

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

20 or 10 lakh is available for registration under GST. A taxable person can also opt for composition scheme if his aggregate turnover is more than rupees 20 or 10 lakh and less than rupees 50 lakh. Further, importer, exporter, and any person who make inter-state supplies shall also be considered as a taxable person and is required to be registered under GST irrespective of threshold limits. Under GST regime every person who is liable to be registered under the Act, shall have to apply for State-wise registration for supply of goods / services from different States. There is no concept of single centralized registration under GST regime as is presently done. Small traders & retailers may opt for different registrations state wise in case of multiple branches or business verticals if they are engaged in supply of goods or services from such place or have different verticals. Business vertical means a distinguishable component of an enterprise that is engaged in supplying an individua

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 28-2-2017 Last Replied Date:- 1-3-2017 – In case of GST, statement of both Inward and outward supplies has to be uploaded in for each and every Tax period.In case of an Assessee had only supply of Services, whether he need to upload the details of the Inward and Outward Supplies? – Reply By KASTURI SETHI – The Reply = Yes. See Section 34. – Reply By Ganeshan Kalyani – The Reply = There is no separate return for goods and servic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

5T of 2017 Dated:- 27-2-2017 Maharashtra SGST – Circular – Circulars – GST – States – Office of the Commissioner of sales Tax, Maharashtra State, 8th Flr., Vikrikar Bhavan, Mazgaon, Mumbai-400010 TRADE CIRCULAR No. JCST/Mahavikas/GST Enrollment/2016-17/B-1215 Mumbai, Dt. 27/02/2017 Trade Circular No. 5 T of 2017 Subject: (a) Last date for Disabling Provisional Id and Access Token of Non-Compliant Phase 1 Phase 2 dealers, (b) Distribution of Provisional Id and Access Token for Phase 3 dealers and (c) Last date for submission of signed Enrollment Applications. Reference: 1) Trade Circular 35 T of 2016 dt. 12-11-2016 2) Trade Circular 2 T of 2017 dt. 06-01-2017 A. Introduction: As per the above referred Trade Circular 35 T of 2016, dt. 12-11-2016 Trade Circular 2 T of 2016, dt. 06-01-2017, the activity of Distribution of Provisional Id and Access Token for Phase 1 and Phase 2 dealers has been started from 14-11-2016 and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nth, around 85% of the dealers of Phase 1 and Phase 2 have collected provisional Ids from MSTD, around 79% of the dealers of Phase 1 and Phase 2 have activated their accounts on GST portal whereas only 11% of the dealers of Phase 1 and Phase 2 have submitted signed applications on GST Portal. The Nodal Officers from MSTD are in continuous communication with the dealers of Phase 1 and Phase 2 for completion this entire process, either through personal visits, phone calls, emails and SMSs. Wide publicity has already been given to this entire activity either through department's web-portals and through News Papers by State as well as Central Government departments. Specialized Registrations Camps are also being taken across the MSTD Offices. Even after taking all these efforts, there are some dealers, who are not corning forward for collecting provisional Ids and Access Token from MSTD. In addition to this, there are some dealers who have collected Provisional Id and Access Toke

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

If any active dealer from Phase 1 and Phase 2, who will not collect Provisional Id from MSTD and will not activate their account on GST Portal on or before 06-03-2017, then it will be assumed that, this dealer is not willing to enroll for GST for any reason and his Provisional Id and Access Taken presently available with MSTD as well as in GSTN will be disabled/deleted permanently. If, in future, such dealers, wants registration under GST Act, they may apply for the same after the implementation of GST Act, but needless to say, such dealers will not be eligible for the benefits of transitional Provisions under the GST Act. If any dealer is willing to enroll for GST, but due to any technical difficulties, it is not possible for him to either collect Provisional Id from MSTD or activate their account on GST Portal, then such dealer should submit his willingness in writing to the office of Nodal Joint Commissioner of Sales Tax before 06-03-2017 and the concerned Joint Commissioner of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

New Section of MSTD's portal www.mahavat.gov.in . For this Phase 3, dealers registered as on 14 th February 2017 with valid PAN are considered If any PAN/TIN is already covered in the list, published along-with the Trade Circular 2T of 2017, and the same is not corrected as on 14 th February 2017, then the concerned dealer is also not considered for Phase 3. Such dealers Will be considered in subsequent phases only after necessary corrections. D. Distribution of Provisional Login Id and Access Token to dealers whose PAN is amended after generation of Provisional Id: There are cases wherein dealers (from Phase 1 and Phase 2) have noticed that their Provisional Ids has been generated on incorrect PAN, and accordingly they have applied for and amended the PANs in registration database of MSTD. The process of generation and distribution of fresh Provisional Ids for all such dealers is under consideration. Fresh Provisional Ids for these dealers will be issued in Phase

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ter login by accessing My Saved Applications at the GST Common Portal. For those taxpayers, who do not hold a valid Digital Signed Certificate (DSC), please note the following: If the constitution of business is Proprietor, he should provide AADHAAR number of proprietor under promoters/partners tab, if he has not provided it, he can provide it now. Same details will be populated in Authorized signatory section. In case if the proprietor is the only signatory, please don't forget to click on primary Authorized Signatory box in the Promoter's /Partner section. In case of constitution of business is other than Proprietor, please provide the AADHAAR number of any authorized signatory in Authorized Signatory section. following Steps need to be followed to e-Sign the application: – 1. Select the any authorized signatory having AADHAAR, 2. Select Submit with e-Sign button in the verification tab, (Same will not be enabled, if the authorized signatory has no

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 25-2-2017 Last Replied Date:- 28-2-2017 – Dear Professional Colleague, CBEC launches GST mobile app & invites suggestions on AIR Duty Drawback rates under GST Striving towards implementation of Goods and Services Tax ( GST ) from July 1, 2017, the Central Board of Excise and Customs ( CBEC or the Board ) has launched a mobile application for GST, in step with the government s Digital India initiative. Taxpayers can readily access a host of GST information such as: Migration to GST-Approach and guidelines for migration Draft Law-Model GST Law, IGST Law and GST Compensation Law Draft Rules – Rules related to Registration, Returns, Payment, Refund and Invoice Frequently Asked Quest

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rk. Suggestions in this regard can be submitted by March 15, 2017 via email sent to the mentioned id therein. Further, the list of Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/ Chambers of Commerce, have been specifically provided, who can submit the suggestions. It is worthwhile to note that under GST, imports and exports of goods and services would be treated as Inter-State supply of goods or services and thereby, Integrated GST ( IGST ) would be payable along with Basis Customs Duty ( BCD ) on import of goods and IGST on import of services. It is likely that under GST, rate of Duty Drawback could be limited to the amount of BCD paid on imported inputs used for exported goods/services. To access the letter,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – pvj naidu – Dated:- 24-2-2017 Last Replied Date:- 24-2-2017 – Sir, I belong to Andhra Pradesh but living in Gujarat. I am planning to purchase a car in Mar 2017 and want to get register in Gujarat only by paying present taxes. But my stay in Gujarat is only temporary and likely to move my state i.e Andhra Pradesh after 6 months and by that time GST will be implemented. Then what tax should I pay to re-register my vehicle there?? Kindly give clarification on this issue please..RegardsPV Jagaeesh – Reply By YAGAY AND SUN – The Reply = As per Motor Vehicle Act read with Rules made thereunder. RTO department will calculate the registration fee and if entry tax is applicable then this is also requried to b

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 24-2-2017 Last Replied Date:- 28-2-2017 – Time of Supply of Services GST shall be payable at the earliest of the following dates, namely: the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the supply, or the date on which the supplier receives the payment with respect to the supply. The provisions are generally similar to existing Point of Taxation Rules. Domestic / SEZ Supply For units located in SEZ having operations across India and providing supply of services to customers located across India, the issue would arises as to where to pay GST, and whether this would require splitting of invoices based on various locations of the service provider or the service recipient. For this purpose, the draft law has prescribed the requirement of determination of the location from where the services are provided and the place of supply of such services, so th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

he location of the recipient of service is in India In general Location of recipient of supply, if available otherwise location of supplier of supply. Place of supply of services where the location of the supplier or the location of the recipient is outside India In general Location of recipient of supply, if available otherwise location of supplier of supply. However, for specific services, place of supply of services provisions have been prescribed in sections 9 and 10 of model IGST law. Valuation of Services Transaction value shall be considered for payment of tax, with various inclusions prescribed in the valuation provisions. This transaction value of supply is subject to specific inclusions or exclusions. Specific inclusions are as follows: Any taxes, duties, cesses, fees and charges levied under any statute, other than SGST /CGST/IGST. Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not inclu

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ted. Payment of tax can also be made by debit card / credit card / RTGS etc. Presently, in certain cases, payment of tax is allowed on a quarterly basis. For Government supplies, Tax Deduction at Source (TDS) will be done by the Government. In case of e-commerce, Tax Collection at Source (TCS) will have to be done. Returns Under Service Tax law, assessee is required to submit two half yearly returns in a year. However, Model GST law (version-II) provides for more than 30 returns which are required to be submitted by a registered person. Since the number of returns to be filed will be over 30, it would add to cost of compliance and more compliances. GSTN has appointed over 30 GST Suvidha Providers (GSPs) who will be the conduit or interface between the taxpayer and the GST network (GSTN). Service providers can avail the services of GSPs to comply with the GST requirements including invoicing / return filing etc. Input Tax Credit Under the existing indirect tax laws, service sector is un

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

is as a condition may require discharge of responsibility by the recipient. A taxable person, being an exporter may claim refund of any unutilized input tax credit at the end of any tax period. In other words, exporter of services shall be eligible to get refund on eligible inputs, capital goods and input services. 'Capital goods' has been liberally defined for being eligible to claim input tax credit in respect of capital goods. 'Capital goods' means goods, the value of which is capitalized in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business. Accordingly, input tax credit will be eligible for capital goods only on those goods, the value of which is capitalized in the books of accounts. This will enable many service providers to claim Cenvat credit. Input Service Distributor concept (ISD) concept has been proposed for transfer of credit of input services between two or more locatio

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 24-2-2017 – F.No.609/23/2017-DBK Government of India Ministry of Finance, Department of Revenue Central Board of Excise & Customs Drawback Division 4th floor, Jeevan Deep Building, Parliament Street, New Delhi-110001 Dated 23rd February, 2017 To Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/Chambers of Commerce (As per list attached) Subject – Suggestions on All Industry Rates (AIRs) of duty drawback under the GST framework As you are aware, Goods and Services Tax (GST) is likely to be implemented by 1st July, 2017. The Model GST Laws are already in public domain. To ensure smooth transition to GST framework, the Drawback Committee is to formulate and recommend revised All Industry Rates (AIRS) of drawback on exports and/ or any other relevant drawback like rebate to be implemented for exports in the context of new GST environment and/or remnant tax structure. 2. Your considered suggestions/views are sought in t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ort Promotion Council (HEPC) – Chennai 14. Indian Silk Export Promotion Council – Mumbai 15. Indian Oilseeds and Produce Export Promotion Association (IOPEA) – Mumbai 16. Plastic Export Promotion Council – Mumbai 17. Pharmaceutical Export Promotion Council – Hyderabad 18. Project Export Promotion Council – New Delhi 19. Powerloom Development and Export Promotion Council (PDEXCIL) – Mumbai 20. Shellac and Forest Products Export Promotion Council – Kolkata 21. Sports Goods Export Promotion Council – New Delhi 22. Synthetic & Rayon Textile Export Promotion Council (SRTEPC) – Mumbai 23. Wool Industry Export Promotion Council – Mumbai Commodity Board 24. Agricultural & Processed Food Products Export Development Authority (APEDA) – New Delhi 25. Coffee Board – Bangalore 26. Coir Board – Kochi 27. Jute Manufacturer Development Council – Kolkata 28. Marine Product Export Development Authority (MPEDA) – Kochi 29. Rubber Board – Kochi 30. Spice Board – Kerala 31. Tea Board – Kolkata Trad

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n – Ludhiana 49. Indian Council of Ceramic Tiles & Sanitaryware – New Delhi 50. Indian Tobacco Association – Guntur 51. Indian Sugar Mills Association (ISMA) – New Delhi 52. Jamnagar Chamber of Commerce & Industry (JCCI) – Jamnagar 53. Manufacturers Association of Information Technology (MAIT) – New Delhi 54. Moradabad Handicraft Exporters Association – Moradabad 55. Punjab Stainless Steel Industries Association – New Delhi 56. Panipat Exporters Association – Panipat 57. Seafood Exporters Association of India – Cochin 58. Society of Indian Automobile Manufacturers (SIAM) – New Delhi 59. Steel Furnace Association of India – New Delhi 60. Steel Wire Manufacturers Association of India – Kolkata 61. Tamilnadu Handloom Industry and Trade Association – Chennai 62. Tirupur Exporters Association – Tirupur 63. Tractor Manufacturers Association (TMA) – New Delhi 64. Writing Instruments Manufacturers Organisation – New Delhi Chambers of Commerce 65. ASSOCHAM – New Delhi 66. Confederation

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – Dated:- 23-2-2017 – In step with the Government s Digital India initiative, the Central Board of Excise and Customs (CBEC) has launched a mobile application for Goods and Services Tax. Taxpayers can readily access a host of GST information such as: Migration to GST-Approach and guidelines for migration Draft Law-Model GST Law, IGST Law and GST Compensation Law Draft Rules-Rules related to Registration, Returns, Payment, Refund and Invoice Frequently Asked Question

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 23-2-2017 Last Replied Date:- 25-2-2017 – Whether all (Currently only Service Tax Assesses) are required to file return monthly? – Reply By KASTURI SETHI – The Reply = Yes but not only monthly but quarterly, yearly also depending upon the nature and scope of services. Read Section 34 of revised draft Model GST. – Reply By Ganeshan Kalyani – The Reply = Section 34 : Returns – Reply By MUKUND THAKKAR – The Reply = under GST law f

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 23-2-2017 Last Replied Date:- 1-3-2017 – Place of Registration / Centralized Registration In the present service tax regime, there is a concept of centralized registration subject to fulfillment of certain conditions. Under GST regime, registration may be required in each State from where supplies are being made. Hence, service provider may need to obtain registration in each State where there is a premises (including site office) from where services are being provided. Centralized registration will no longer be available which will increase the cost of compliance for the assessees. It would become an unproductive exercise for multi location enterprises such as banks, insurance company etc. Supply 'Supply' means: all forms of supply of goods and/or services made or agreed to be made for a consideration by a person in the course or furtherance of business, Importation of service for a consideration, and Services

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

al or residential complex for business or commerce, either wholly or partly, 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 where the entire consideration has been received before issuance of completion certificate or before its first occupation, whichever is earlier. works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract. Information Technology Sector Development, design, programming, customization, adaptation, up-gradation, enhancement and implementation of information technology software. Hospitality Supply of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. Job-work Job work will include any treatment or process which is being

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

PR or works contracts or restaurant sales, VAT is also payable. In GST regime, only one tax ,i.e., GST will be charged and moreover, there will be a clarity on to the nature of service. Overall tax rates are also likely to come down which may benefit the consumers of these services. Inter-State or Intra-State Any supply of services where the location of the supplier and the place of supply are in different States then, such supply shall be considered as inter-state supply and as such, accordingly, provisions of IGST law will be applicable. On other hand, any supply where the location of the supplier and the place of supply are in same State, then such supply shall be considered as intra-state supply and only CGST / SGST shall be levied. Presently, all services are subject to central tax, i.e., service tax which applies to whole of India except the State of Jammu & Kashmir. There are no State boundaries and it applies uniformly to all services and service providers. In GST regime, t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the address of service recipient on record can be established before the authorities on request. Import of Services / Reverse Charge Import of services from outside India shall be taxed in the hands of recipient of services under reverse charge mechanism. Central / State Government will also notify certain cases where tax shall be collected under reverse charge mechanism as is presently done. Further, any person receiving certain specified services for personal use of value exceeding a specified amount will also be liable to pay GST under reverse charge. Transactions between head office and branch offices located outside/inside India Services provided to overseas branch would not be eligible as export of services due to specific exclusion for such transactions in the definition of 'export of service'. This is similar to the existing provisions for export of service to overseas branches. An establishment of a person in India and any of his other establishments outside India sha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 22-2-2017 Last Replied Date:- 1-3-2017 – Key takeaways of 10th GST Council meeting: GST Compensation Bill gets nod; IGST, CGST and SGST Laws will be taken up in next meeting on March 4-5 GST Compensation Bill gets the formal nod Prospects of Goods and Services Tax ( GST ) becoming a reality from July 1, 2017, brightened further with the GST Council clearing the legally vetted draft of the GST Compensation Bill, in its 10th meeting, held on February 18, 2017 at Udaipur. The GST Compensation Bill seeks to stipulate the manner in which States will be compensated in the event of a loss arising in the first five years, due to the implementation of GST. The GST compensation law, that if a state has a loss, then for the first five years they will be compensated, the legally vetted draft has been formally approved by the GST Council…It will go before the Cabinet, which will give its approval and we will seek to place it before Parlia

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

gal committee has received its clarifications from the Council….The legal committee will incorporate these changes and on March 4-5, the GST Council will meet again in Delhi and approve these laws. , Mr. Jaitley said. Fitment of items under GST rate slabs to be done after passage of laws The decision on categorisation of goods in tax slabs (5%/12%/18%/28% and 28% with Cess) is not part of the law and will be worked out by the GST Council after the enabling laws are passed. Mr. Jaitley said that they would require one more major meeting of the Council to give its approval to the specific items in each of the slabs. No discussion on anti-profiteering Mr. Jaitley said that the issue of anti-profiteering did not come up for discussion during the meeting. No additional powers to CAG The Finance Minister added that the GST Council has decided against giving additional powers to the Comptroller and Auditor General of India (CAG) under the Indirect tax act. CAG is already empowered unde

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

sessees below the annual turnover threshold of ₹ 1.5 crore between States and Centre, respectively, and an equal division of assessees for a turnover of above ₹ 1.5 crore, after consultation with the Centre. Also, it had said that the GST Council had approved equal division of new registrants. Our Comments: Indeed, the approval to the Draft Compensation Bill, is a positive development, on way to GST implementation, as it was one of the contentious issues. Another good signal was that the political differences over demonetisation that hampered negotiations seem out of the way. All eyes will now be on next meeting of the GST Council on March 4-5 to see formal approval to the Draft Laws. Central laws would then be put up before the Parliament in the second leg of the Budget session, starting on March 9, 2017. Focus shall also remain on the fitment of items in GST rate slabs which will play the major role in preparation of the Industry. Hope the information will assist you in y

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 22-2-2017 Last Replied Date:- 1-3-2017 – GST Council met for the tenth time at Udaipur on 18th February, 2017, its first meeting out of Delhi and at Udaipur (Rajasthan). This meeting being at Udaipur for only few hours, being of one day and then due to air connectivity, people were reaching till 12.00 p.m. of same day. While it could have been the last meeting before GST Bills were approved, this could not be done due to various other issues which had to be ironed out. Perhaps there will be few more meetings before GST see the light of the day. 10th GSTC meeting was crucial as it paved the way for many decisions before final approval of draft legislations take place. Though

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

of rates in commodities to taken up by GSTC after approval of bills i.e. which item in which slab rate. The group of officers are doing the ground work on the same. (It may be noted that businesses are eagerly waiting for fitment as their impact analysis is dependent on the same). Unlike earlier few meetings, there was some but vital progress made in moving forward. However, it is learnt that in the opening hours, there were some concerns on the minutes of earlier meeting in which dual administrative control issue between states and centers was decided. However, it was later resolved to the satisfaction of all with some amends. The clearance of Compensation Bill of GSTC is a welcome step and it was bound to happen. This will give comfort t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ay not be placed in public domain for further comments but may finally go to the Parliament as Bills. It would however, be desirable for the sake of transparency to let the country know what all amendments have been made. After all, India needs a near perfect law (if not perfect)with least of aberrations and inconsistencies. This becomes more important as these Bills may not be referred to any Standing or Select Committee of Parliament since these have been vetted by an all powerful GSTC. Udaipur, being a romantic city could not romance with GST and the final approval got delayed for a fortnight or so as GST Council's next meeting is now scheduled for 2 days on 4-5 March, 2017 Delhi. This will be the crucial meeting before Bills are tab

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 20-2-2017 Last Replied Date:- 1-3-2017 – Services contribute over 57 percent to Indian economy (GDP) which is the highest, followed by industry and agriculture. Services have been growing at the rate of 9-11 percent since last few years which is higher than the GDP growth itself which is growing @ 7-7.9 percent. The tax on services was introduced in India in 1994 with levy of Service Tax @ 5% on just three services which grew to over 120 services by 2012. It was in July, 2012 that India moved to negative list approach to levy Service Tax on all services except those which are covered in negative list or are specifically exempt. The present rate of Service Tax is 15 % including cesses Presently, services are defined very comprehensively under section 65B(44) of the Finance Act, 1994. Accordingly, the term Service has been defined in clause (44) of the new section 65B inserted by the Finance Act, 2012 as applicable w.e.f.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nds to whole of India except the State of Jammu & Kashmir. Therefore, rendition of services in the State Jammu and Kashmir would also cover under the term 'supply' and accordingly, provisions of GST shall be applied to whole of India including the State of Jammu and Kashmir (J & K). Threshold Exemption Presently in Service Tax, there is a threshold exemption of ₹ 10 lakhs based on the aggregate turnover limit of ₹ 10 lakh and no Service Tax is payable in such cases. In the GST regime, the limit of threshold exemption will be enhanced to ₹ 20 lakh on all India basis except in case of North-eastern and hilly States (total 11 States) where it will be ₹ 10 lakhs. These States are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttarakhand. For this purpose, definition of 'aggregate turnover' has been provided in section 2(6) of the model GST law (version-II) which is

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

increase of tax on supply of services will impact the service users and offset the benefit accruing due to lower rate on goods. If services are taxed at two different rates, say 12% and 18%, it may be some relief. In such case, industrial and luxury services may be taxed at a higher rate while other services may be taxed at 12 percent or lower rate. Relief from Double Taxation- Sale v. Service Presently, service providers find it difficult to identify what is service and what is a good facing tax disputes with both the tax Departments i.e., Service Tax and VAT /CST Departments. Service providers paying service tax do receive notices from VAT /CST Department and dealers who are paying VAT /CST get notices from service tax Department in case of overlapping transactions. With the introduction of one single tax i.e., GST on supply of goods and /or services including supplies as per Schedule-II of GST model law (version-II), GST is likely to put an end to the double taxation of services li

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Rajeev Khulbe – Dated:- 20-2-2017 Last Replied Date:- 23-2-2017 – मेरे सभी प्रिय विशेषज्ञ को मेरा प्रणाम कृपया करके आप मुझे ये बता सकते हैं की GST के अंतर्गत सेनवैट क्रेडिट लेने क&#2

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

take credit on the stock lying on the day immediately before the date of grant of registration. – Reply By Ganeshan Kalyani – The Reply = The final draft GST law will have clarifity on such issues. Yes the credit which is disclosed in the last return under current tax regime will be carried forward in the GST and credit would be allowed. – Reply By KASTURI SETHI – The Reply = I support the views of Sh.Ganeshan Kalyani, an expert. – Reply By YAGAY AND SUN – The Reply = However, if the goods lying in the warehouse/depots/godowns are older than 12 months then no CENVAT Credit would be passed on such goods under GST Model Law. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = We are not well versed in Hindi. If it is given in English it could be

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =