Goods and Services Tax

Section 32 – Draft-Bills-Reports – ADMINISTRATION – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 32 – CHAPTER- XI ADMINISTRATION 32. Classes of officers under the Integrated Goods and Services Tax Act, 2016 (1) There shall be the following classes of officers under the Integrated Goods and Services Tax Act, 2016 namely; (a) Principal Chief Commissioners of IGST or Principal Directors General of IGST, (b) Chief Commissioners of IGST or Directors Gen

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Section 33 – Draft-Bills-Reports – ADMINISTRATION – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 33 – 33. Appointment of officers under the Integrated Goods and Services Tax Act, 2016 (1) The Board may appoint such persons as it may think fit to be officers under the Integrated Goods and Services Tax Act, 2016. (2) Without prejudice to the provisions of sub-section (1), the Board may authorize a Principal Chief Commissioner/Chief Commissioner of Ce

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Section 14 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 14 – 14. Decisions to be by majority (1) If the Members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority. (2) In a case where the decision is taken by a two member Bench as provided under sub-section (3) of section 13 and Members are equally divided, the matter will be referred to the th

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Section 13 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 13 – 13. Jurisdiction and powers of Settlement Commission (1) The jurisdiction of the State Settlement Commission constituted under this Act shall extend to the …… (name(s) of States). (2) Each Bench shall be presided over by the State Chairman and shall consist of two other Members. (3) Notwithstanding anything contained in the foreg

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Section 12 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 12 – 12. Constitution of National Goods and Services Tax Settlement Commission (1) The Central Government shall on the recommendation of the Council constitute a National Goods and Services Tax Settlement Commission for settlement of cases under this Act. (2) The Settlement Commission shall be headed by a National Chairman. (3) The Settlement Commi

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Section 11 – Draft-Bills-Reports – SETTLEMENT OF CASES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 11 – CHAPTER – VIII SETTLEMENT OF CASES 11. Definitions (a) "Bench" means a Bench of the Settlement Commission; (b) "case" means any proceeding under this Act for the levy, assessment and collection of IGST before an IGST officer, or before a First Appellate Authority in connection with such levy, assessment or collection of IGST pending on the date on which an application under sub-section (1) of section 15 is made: Provided that where an order is passed by an adjudicating authority and for which the appeal period has not expired shall also be deemed to be a proceeding pen

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Section 10 – Draft-Bills-Reports – APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 10 – CHAPTER- VII APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS 10. Apportionment of tax collected under the Act and settlement of funds (1) Out of the IGST paid to the Central Government in respect of inter-State supply of goods and/or services to an unregistered person or to a taxable person paying tax under section 8 of the CGST Act, the amount of tax calculated at the rate equivalent to the CGST on similar intra-state supply shall be apportioned to the Central Government. (2) Out of the IGST paid to the Central Government in respect of inter-State supply of goods an

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r intra-state supply shall be apportioned to the Central Government. (4) Out of the IGST paid to the Central Government in respect of import of goods and / or services made in a year by a registered taxable person, where the such taxable person is either not eligible for input tax credit or where he does not avail of the said credit within the specified period and thus remains in the IGST account after expiry of the due date for filing of annual return for such year in which the supply was received, the amount of tax calculated at the rate equivalent to the CGST on similar intra-state supply shall be apportioned to the Central Government. (5) The balance amount of tax remaining in the IGST account in respect of the supply for which an appor

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Section 9 – Draft-Bills-Reports – INPUT TAX CREDIT – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 9 – 9. Transfer of input tax credit (1) On utilization of input tax credit availed under this Act for payment of tax dues under the CGST Act as per sub-section (5) of section 7, the amount collected as IGST shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced

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Section 8 – Draft-Bills-Reports – INPUT TAX CREDIT – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 8 – CHAPTER- VI INPUT TAX CREDIT 8. Claim of input tax credit, provisional acceptance, matching, reversal and reclaim thereof (1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed in this behalf, be entitled to take credit of input tax, as self-assessed, in his return and such amount shall be credit

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Section 7 – Draft-Bills-Reports – PAYMENT OF TAX – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 7 – CHAPTER-V PAYMENT OF TAX 7. Payment of tax, interest, penalty and other amounts (1) Every deposit made towards tax, interest, penalty, fee or any other amount by a taxable person by internet banking or by using credit/debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by any other mode, subject to such conditions and restrictions as may be prescribed in this behalf, shall be credited to the electronic cash ledger of such person to be maintained in the manner as may be prescribed. Explanation.- The date of credit to the account of the appropriate Government in the a

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conditions and within such time as may be prescribed. (5)(a) The amount of input tax credit on account of IGST available in the electronic credit ledger shall first be utilized towards payment of IGST and the amount remaining, if any, may be utilized towards the payment of CGST and SGST, in that order. (b) The amount of input tax credit on account of CGST available in the electronic credit ledger shall first be utilized towards payment of CGST and the amount remaining, if any, may be utilized towards the payment of IGST. (c) The amount of input tax credit on account of SGST available in the electronic credit ledger shall first be utilized towards payment of SGST and the amount remaining, if any, may be utilized towards the payment of IGST.

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Section 6 – Draft-Bills-Reports – PLACE OF SUPPLY OF GOODS AND/OR SERVICES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 6 – 6. Place of supply of services (1) The provisions of this section shall apply to determine the place of supply of services. (2) The place of supply of services, except the services specified in sub-sections (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15), made to a registered person shall be the location of such person. (3) The place of supply of services, except the services specified in sub-sections (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) and (15), made to any person other than a registered person shall be (i) the location of the recipient where the address on record exists, and (ii) the location of the supplier of services in other cases. (4) The place of supply of services, – (a) in relation to an immovable property, including services provided by architects, interior deco

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proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf. (5) The place of supply of restaurant and catering services, personal grooming, fitness, beauty treatment, health service including cosmetic and plastic surgery shall be the location where the services are actually performed. (6) The place of supply of services in relation to training and performance appraisal to (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location where the services are actually performed. (7) The place of supply of services provided by way of admission to a cultural, artistic, sporting, scientific, educational, or entertainment event or amusement park or any other place and services ancillary thereto, shall be the place where the event is

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this regard or, in absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf. (9) The place of supply of services by way of transportation of goods, including by mail or courier to, (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation. (10) The place of supply of passenger transportation service to (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey: Provided that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in the manner specified in sub-sections (2) or (3), as the case may be. Explanation.- For the purposes of this

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ces; (c) in cases where mobile connection for telecommunication and internet service are provided on pre-payment through a voucher or any other means, be the location where such pre-payment is received or such vouchers are sold: Provided that if such pre-paid service is availed or the recharge is made through internet banking or other electronic mode of payment, the location of the recipient of services on record of the supplier of services shall be the place of supply of such service. (13) The place of supply of banking and other financial services including stock broking services to any person shall be the location of the recipient of services on the records of the supplier of services: Provided that if the service is not linked to the account of the recipient of services, the place of supply shall be location of the supplier of services. (14) The place of supply of insurance services shall: (a) to a registered person, be the location of such person; (b) to a person other than a regi

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Section 5 – Draft-Bills-Reports – PLACE OF SUPPLY OF GOODS AND/OR SERVICES – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 5 – CHAPTER- IV PLACE OF SUPPLY OF GOODS AND/OR SERVICES 5. Place of supply of goods (1) The provisions of this section shall apply to determine the place of supply of goods. (2) Where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient. (2A) Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third person, whether acting as a

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Section 4 – Draft-Bills-Reports – LEVY AND COLLECTION OF TAX – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 4 – CHAPTER- III LEVY AND COLLECTION OF TAX 4. Levy and collection of Integrated Goods and Services Tax (1) There shall be levied a tax called the Integrated Goods and Services Tax on all supplies of goods and/or services made in the course of inter-State trade or commerce at the rate specified in the Schedule to this Act and collected in suc

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Section 3A – Draft-Bills-Reports – PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE COURSE OF INTER – STATE TRADE OR COMMERCE – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 3A – 3A. Supplies of goods and/or services in the course of intra-State trade or commerce (1) Subject to the provisions of section 5, intra-state supply of goods means any supply where the location of the supplier and the place of supply are in the same State. (

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Section 3 – Draft-Bills-Reports – PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE COURSE OF INTER – STATE TRADE OR COMMERCE – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 3 – CHAPTER- II PRINCIPLES FOR DETERMINING SUPPLY OF GOODS AND/OR SERVICES IN THE COURSE OF INTER-STATE TRADE OR COMMERCE 3. Supplies of goods and/or services in the course of inter-State trade or commerce (1) Subject to the provisions of section 5, supply of goo

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Section 2 – Draft-Bills-Reports – PRELIMINARY – Draft – INTEGRATED GOODS AND SERVICES TAX ACT, 2016 ( IGST Act) – Draft June 2016 – Section 2 – 2. Definitions (1) In this Act, unless the context otherwise requires,- (a) appropriate State , in relation to a taxable person, means that State where he is registered or liable to be registered under section 19 of the Central Goods and Services Tax Act, 2016. Explanation: For the purpose of this Act, State includes Union Territory with Legislature. (b) Government means the Central Government; (c) Integrated Goods and Services Tax (IGST) means tax levied under this Act on the supply of any goods and/or services in the course of inter-State trade or commerce. Explanation 1.- A supply of goods and/o

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

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Rule 8 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 8 – 8. Valuation in certain cases (1) Pure Agent (a) Notwithstanding anything contained in these rules, the expenditure or costs incurred by the service provider as a pure agent of the recipient of service, shall be excluded from the value of the taxable service if all the following conditions are satisfied, namely:- (i) the service provider acts as a pure agent of the recipient of service when he makes payment to third party for the goods and/or services procured; (ii) the recipient of service receives and uses the goods and/or services so procured by the service provider in h

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the service provider from the third party as a pure agent of the recipient of service are in addition to the services he provides on his own account. Explanation.- For the purposes of this sub-rule, pure agent means a person who- (a) enters into a contractual agreement with the recipient of service to act as his pure agent to incur expenditure or costs in the course of providing taxable service; (b) neither intends to hold nor holds any title to the goods and/or services so procured or provided as pure agent of the recipient of service; (c) does not use such goods and/or services so procured; and (d) receives only the actual amount incurred to procure such goods and/or services. (2) Money Changer The value of taxable service provided for th

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Rule 7 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 7 – 7. Rejection of declared value (1)(a) When the proper officer has reason to doubt the truth or accuracy of the value declared in relation to any goods and/or services, he may ask the supplier to furnish further information, including documents or other evidence and if, after receiving such further information, or in the absence of any response from such supplier, the proper officer still has reasonable doubt about the truth or accuracy of the value so declared, it shall be deemed that the transaction value of such goods and/or services cannot be determined under the provisi

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te the supplier in writing the grounds for doubting the truth or accuracy of the value declared in relation to the supply of goods and/or services by such supplier and provide a reasonable opportunity of being heard, before taking a final decision under sub-rule (1). (3) If after hearing the supplier as aforesaid, the proper officer is, for reasons to be recorded in writing, not satisfied with the value declared, he shall proceed to determine the value in accordance with the provisions of rule 4 or rule 5 or rule 6, proceeding sequentially. Explanation.- For removal of doubts, it is hereby declared that this rule by itself does not provide a method for determination of value. It provides a mechanism and procedure for rejection of declared v

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Residual method – Rule 6 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 6 – 6. Residual m

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Rule 5 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 5 – 5. Computed value method If the value cannot be determined under rule 4, it shall be based on a computed value which shall include the following:- (a) the cost of production, manufacture or processing of the goods or, the cost of provision of the services; (b) charges, if any, for the design or brand; (c) an amount towards profi

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Rule 4 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 4 – 4. Determination of value of supply by comparison (1) Where the value of a supply cannot be determined under rule 3, the value shall be determined on the basis of the transaction value of goods and/or services of like kind and quality supplied at or about the same time to other customers, adjusted in accordance with the provisio

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Rule 3 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 3 – 3. Methods of determination of value (1) Subject to rule 7, the value of goods and/or services shall be the transaction value. (2) The transaction value shall be the value determined in monetary terms. (3) Where the supply consists of both taxable and non-taxable supply, the taxable supply shall be deemed to be for such part of

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Rule 2 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 2 – 2. Definitions (1) In these rules, unless the context otherwise requires: (a) "Act" means the IGST Act or the CGST Act or, as the case may be, the SGST Act; (b) goods of like kind and quality means goods which are identical or similar in physical characteristics, quality and reputation as the goods being valued, and pe

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Rule 1 – Draft-Bills-Reports – GST Valuation Rules – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 – Draft June 2016 – Rule 1 – GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016 1. Short title, commencement and application. (1) These rules may be called the GST Valuation (Determination of Value of Supply of Goods and Services) Rules, 2016. (2) These Rules shall come into force on the day the Act comes into force. (3)

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