Goods and Services Tax

Goods and Services Tax – GST – By: – atul rathod – Dated:- 4-10-2016 Last Replied Date:- 5-10-2016 – Impact of GST on Real Estate Sector:- Background:- Since the Model law of GST has come in public domain on 14.06.2016 and bill has been passed in Rajya Sabha and even expected to get effective from 01.04.2017. The purpose of this article is to give overview on impact of GST on Real Estate Sector due to change in Indirect tax structure. GST will play a major role in real estate sector as most of the purchases made by builder from unorganized persons, but in GST they need to purchase from organized persons. This is 2nd in Series. (Impact of GST on various sectors) Positive Impact:- One Tax: In Present structure of GST, there are various kinds of taxes such as Service tax, VAT, CST But in GST Regime there is only one tax i.e. GST however, there will be three parts such as CGST, SGST, IGST. Works Contract is deemed as Supply of Service : The major issues are in Present regime of Indirect T

= = = = = = = =

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

= = = = = = = =

ct service and not Construction of residential complex service or vice versa, whereas no such disputes is going to arise in GST. This will save litigation cost as part of the cases in litigation is around classification issues. No Cascading effect: In Current Regime of tax a builder is not eligible to take credit of CST on purchases made from interstate where as in GST the same is allowed as credit and there is no cascading effect to the extent of CST. However, Petrol & Diesel which is also key raw material of the Real estate has been kept out of the GST Regime, hence to the extent of the same cascading effect is going to be retain and the same will be added as cost. Further, there is no provision of exclusion of Property tax in GST Regime, may invoke basis fundamental of GST Regime. No Joint Charge In works contract service: In Present Regime of law, there is huge problems has been facing while calculating the liability where the partly reverse charge is applicable for the procuri

= = = = = = = =

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

= = = = = = = =

ax authorities: Generally A Builder are facing many difficulties in handling the assessments done by the Separate authorities for VAT, Service Tax, CST, etc. In GST Regime it is expected that assessment will be done by one authority to the extent of limit of turnover, if the turnover exceed prescribed limit than assessment going to be done by another authority. Electronic Mode for Forms: In current Regime of tax there is very much manual filing of documents such as initial declaration and other forms but in GST Regime there will be less manual filing of documents and more through electronic mode. Further, the communication with department also could be through electronic mode. Compliance:-In GST Regime huge Compliance would be there however, it could be negative impact as well as positive. Negative Impact Rate of tax: In current tax regime the consumer pays approximately 6% as Service tax and 5% as VAT which comes around 11% whereas GST consumer might end up paying tax at the rate betw

= = = = = = = =

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

= = = = = = = =

ed in Valuation for GST. Further, freebies given at the initial bookings also must be assessable to GST. Registration: Generally it is seen that Construction Company may have various sites in the country, in present regime he may take centralized registration and was adding the sites in registration certificate whereas in GST Regime construction company does not have any option and has to take registration in state wise which may increase the compliance cost. Reverse Charge on Goods: In Current Regime Of tax structure there was reverse charge on specified services but in case of GST even the reverse charge will be applicable on goods. Post supply Discount: If the Discount has to be given post supply than it must be known to both the parties at the time of supply or pre-supply and the proof of being known is the clause of discount must be there either in contract or agreement or offer etc. Credit Criteria in Returns: In Current if the tax has been made the purchaser to supplier then he

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 3-10-2016 Last Replied Date:- 3-10-2016 – Dear Professional Colleague, Highlights of Draft GST Rules & Formats which got approved by the GST Council The Government is not leaving any stone unturned to roll out the much awaited indirect tax reform from April 1, 2017. In less than a week after the first meeting of the GST Council (on September 22-23, 2016), the Central Board of Excise and Customs ( CBEC ) on September 26, 2016, has unveiled the Draft Rules and formats under GST relating to registration, invoice and payment. Further on September 27, 2016, more GST Draft Rules and formats on return and refunds were also put in public domain (collectively referred to as the Draft GST Rules ). Earlier, in the month of October, 2015, the Draft GST Business Processes on registration, payment, returns and refunds were put in public domain for public comments. Draft GST Rules approved by the GST Council The CBEC invited comments on t

= = = = = = = =

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

= = = = = = = =

power for assessment to Centre for assessing 11 lakh Service tax assessees who are currently assessed by them. However, there were divisions over ratifying/ approving the minutes of the first meeting of the GST Council after at least two States disagreed with the Centre's power for assessing these taxpayers in the new dispensation. The discussion was in conclusive and therefore it will continue in the next meeting. The next meeting of GST Council will be held on October 18-20, 2016 to discuss on issues like Service tax assessment and the formula for calculating compensation to be paid to States in case of revenue shortfall as a result of implementation of the GST regime, possibly from April 1, 2017.GST rates, Draft GST law to be decided by November 22, 2016. Key Highlights of the Draft GST Rules Key highlights of the Draft GST Rules for registration, invoice, payment, return and refunds are stated below for easy digest: I: Draft Rules and Formats for Registration under GST Section

= = = = = = = =

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

= = = = = = = =

ation/ Clarification/ Documents relating to Application for<> 4 GST REG-04 Application for filing clarification/additional information/ document for <> 5 GST REG-05 Order of Rejection of Application for <> 6 GST REG-06 Registration Certificate issued under Section 19(8A) of the Goods and Services Tax Act, 20- 7 GST REG-07 Application for Registration as Tax Deductor or Tax Collector at Source under Section 19(1) of the Goods and Service Tax Act, 20- 8 GST REG-08 Order of Cancellation of Application for Registration as Tax Deductor or Tax Collector at Source under Section 21 of the Goods and Service Tax Act, 20-. 9 GST REG-09 Application for Allotment of Unique ID to UN Bodies/Embassies /any other person under Section 19(6) of the Goods and Service Tax Act, 20-. 10 GST REG-10

= = = = = = = =

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

= = = = = = = =

onal certificate 23 GST REG-23 Intimation of discrepancies in Application for Enrolment of existing taxpayer 24 GST REG-24 Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under Goods and Services Tax Act 20- 25 GST REG-25 Application for extension of registration period by Casual / Non-Resident taxable person. 26 GST REG-26 Form for Field Visit Report Online filling of application- Application for registration is to be made online either directly on the GSTN Portal or through Facilitation Centres (FC) notified by the Board or Commissioner. Verification of Information- For GST Registration, Part A of FORM GST REG-01 (application for registration under Section 19(1) of the Model GST Act) seeks to verify PAN through Income Tax Portal, mobile number and email i.d. through one-time password (OTP) sent to the said mobile number/email address. No fee for filling registration application-No fee is payable for filing application for registrati

= = = = = = = =

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

= = = = = = = =

w and having a PAN shall be granted registration on a provisional basis and a certificate of registration incorporating the GSTIN therein, shall be made available on the Common Portal. Thereafter, an application along with the information/documents specified therein shall be submitted electronically. Information asked for shall be furnished within a period of 6 months or such further period as may be extended by the Board or Commissioner. Failure to submit relevant information within prescribed time period can lead to cancellation of provisional registration. Physical verification of business premises- Verification of premises may be taken up by the proper officer after granting registration and verification report to be uploaded in Form GST REG-26. Read more on the Draft Rules and Formats for Registration under GST at: http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-registration-rules.pdf http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-formats-under-registration-rules.

= = = = = = = =

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

= = = = = = = =

credit ledger in FORM GST PMT-2 and the electronic cash ledger in FORM GST PMT-3. Mode of Payment of tax- Tax can be paid either through net banking, credit or debit card, NEFT/RTGS, Over the Counter ( OTC ) [OTC payment only up to ₹ 10,000per challan per tax period]. Unique Identification Number (UIN)- A UIN shall be generated at the Common Portal for each debit or credit to the electronic cash or credit ledger. Generation of UIN for every transaction – to be correlated with tax liability register. 7 Forms for Payment prescribed -7 Forms for payment has been prescribed (Form GST PMT-1 to Form GST PMT -6 and Form GST PMT-2A), namely- Sr No. Form No. Title of the Form 1. Form GST PMT-1 Electronic Tax Liability Register of Taxpayer (Part-I: Return related liabilities) Electronic Tax Liability Register of Taxpayer (Part-II: Other than return related liabilities) 2. Form GST PMT-2 Electronic Credit Ledger 3. Form GST PMT-2A Order for re-credit of the amount to cash or credit ledger

= = = = = = = =

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

= = = = = = = =

Rules viz. Tax invoice, Manner of Issuing Invoice, Bill of supply, Supplementary tax invoice and Credit or debit notes, Tax Invoice in special cases. Information to be filed in Tax Invoice-The Draft Invoice Rules provides that the tax invoice which is to be issued by supplier shall have an extensive list of information, numbering around 20 viz. name, address and GSTIN of the supplier, HSN code of goods or Accounting Code of services, rate of tax (CGST, SGST or IGST), place of delivery where the same is different from the place of supply etc. Also, in case of exports information such as name and address of the recipient, address of delivery, name of the country of destination and number and date of application for removal of goods for export [ARE-1] are also required to be given. Manner of issuing invoice- The invoice shall be prepared in triplicate, in case of supply of goods, and in duplicate, in case of supply of services. Form for application for Electronic Reference Number of Invo

= = = = = = = =

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

= = = = = = = =

Read more on the Draft Rules and Formats of Invoice under GST at: http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-invoice-rules.pdf http://www.cbec.gov.in/htdocs-cbec/gst/draft-formats-under-invoice-rules.pdf IV: Draft Rules and Formats for Return under GST A return is a statement of specified particulars relating to business activity undertaken by the taxable person during a prescribed period. GST is a self-assessed destination based consumption taxation system. Thus, the submission and processing of return is an important link between the taxpayer and tax administration. Chapter – VIII of the Model GST Act contains the provisions regarding returns. The Draft Rules of Return under GST ( the Draft Return Rules ) along with Return Formats have now been put on Public domain. The salient features of the Draft Return Rules and Formats are as follows- 25 Rules on Return prescribed- The Draft Return Rules have 25 Rules viz. Form and manner of furnishing details of outward supplies an

= = = = = = = =

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

= = = = = = = =

tax 6 Form GSTR-3A Notice to a registered taxable person who fails to furnish return under section 27 and section 31 7 Form GSTR-4 Quarterly Return for compounding Taxable persons 8 Form GSTR-4A Details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier 9 Form GSTR-5 Return for Non-Resident foreign taxable person 10 Form GSTR-6 ISD return 11 Form GSTR-6A Details of inward supplies made available to the ISD recipient on the basis of FORM GSTR-1 furnished by the supplier 12 Form GSTR-7 Return for authorities deducting tax at source 13 Form GSTR-7A TDS Certificate 14 Form GSTITC-1 Communication of acceptance, discrepancy or duplication of input tax credit claim 15 Form GSTR-8 Details of supplies effected through e-commerce operator and the amount of tax collected as required under sub-section (1) of section 43C 16 Form GSTR-9 Annual return 17 Form GSTR-9A Simplified Annual return by Compounding taxab

= = = = = = = =

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

= = = = = = = =

ms are prescribed for periodical returns by Regular Taxable Persons, composition dealers, Non-resident taxable persons, Persons who are required to deduct or collect tax at source etc. No time period for issuing SCN to non- filers of return-No time period has been prescribed for issuing Notice to non- filers of return under Rule 9 of the Draft Returns Rules. Annual return- Every registered taxable person shall furnish an annual return electronically in FORM GSTR-9 through the Common Portal either directly or from a FC, notified by the Board or Commissioner. Tax return preparers-The Draft Return Rules prescribe the conditions for enrolment as tax return preparers. Read more on the Draft Rules and Formats for Return under GST at: http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-return-rules-26092016.pdf http://www.cbec.gov.in/resources//htdocs-cbec/gst/draft-return-formats-26092016.pdf V: Draft Rules and Formats for Refunds under GST Section 38 of the Model GST Act contains the pr

= = = = = = = =

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

= = = = = = = =

GST RFD-06 Order for Complete adjustment of claimed Refund GST RFD-07 Show cause notice for reject of refund application GST RFD-08 Payment Advice GST RFD-09 Order for Interest on delayed refunds GST RFD-10 Refund application form for Embassy/International Organizations Form for Refund application- A common refund application is prescribed for all refunds arising on various instances which is to be made in Form GST RFD-1 electronically through the Common Portal either directly or from a FC notified by the Board or Commissioner. Refund relating to balance amount in electronic cash ledger- Claim for refund of balance amount in the electronic cash ledger is to be made through the return for the relevant tax period. Provisional refund- The Draft Refund Rules provides for a stipulation of provisional refund within 7 days from the date of acknowledgement, where the proper officer after scrutinizing the claim is prima facie satisfied. However, such provisional refund, is only contemplated if

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – yogesh Panchal – Dated:- 3-10-2016 Last Replied Date:- 24-12-2016 – Dear All, GST Tax Experts,In current central excise law the levy of excise duty on manufactured of finished goods , also manufactured only charged excise duty, the biggest litigation and issues are goods are manufactured, deemed manufacturer, Traders, Dealers & etc. then in the Trading business Trader purchase brought out goods, do not take cenvat credit of excise & service tax, do not take any manufacturing activity on the brought out goods, do not take excise registration and brought out goods cleared without excise duty with adding profit margin, pay CST/VAT. – Reply By Ganeshan Kalyani – The Reply = Whether you are updatin

= = = = = = = =

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

= = = = = = = =

Trader purchase brought out goods, do not take cenvat credit of excise & service tax, do not take any manufacturing activity on the brought out goods, do not take excise registration and brought out goods cleared without excise duty with adding profit margin, pay CST/VAT.Now in GST Régimes above type of Trading business liable for take credit & pay GST on brought material which not doing any manufacturing or deemed manufacturing activity????, (2 ) As per GST Model Law if the credit is not availed and not reflected in the return of march-2017 , as of now there is no provision in GST Model Law to avail the credit in future. In respect of the above condition Following Credit/paid Amount Not reflected In the Excise & Service

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 3-10-2016 Last Replied Date:- 4-10-2016 – Chapter XII of the model GST Act ( Act for short) provides the procedure for assessment under GST regime. This chapter provides the following types of assessments- Self assessment; Provisional assessment; Best judgment assessment; and Summary assessment. Self Assessment Section 44 of the Act provides that every person registered under the Act shall himself assess the tax payable him for a tax period. After such assessment he shall file the returns required under Section 27. Explanation to Section 44 provides that where goods received as an inward supply is returned by the recipient to the supplier within six months from the date of relevant invoice, the tax payable on such supplies shall be equal to the input tax credit availed earlier on such inward supply. This provision ensures that if the recipient returns the goods to the supplier within six months of the date of its origi

= = = = = = = =

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

= = = = = = = =

deem fit; The bond is binding the taxable person for payment of the different between the amount of tax as may be finally assessed and the amount of tax provisionally assessed; The proper officermay require such information for finalizing the assessment; On sufficient cause being shown and for reasons to be recorded in writing, the above period of six may be extended- By the Joint/Additional Commissioner for a further period not exceeding six months; and By the Commissioner for such further period as he may deem fit. The taxable person shall be liable to pay interest on any amount payable to the Central/State Government consequent to the order for final assessment at the rate specified from the first day after the due date of payment of tax in respect of the said goods and/or services till the date of actual payment, whichever such amount is paid before or after the issue of order for final assessment; If the taxable person is entitled to a refund consequent to the order of final asse

= = = = = = = =

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

= = = = = = = =

des the procedure of making best judgment assessment if the taxable person fails to register himself with the authority. Section 47 provides that a proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax period. Such an order must be passed within five years from the due date for filing the annual return for the financial year to which nonpayment of tax relates. Such order cannot be passed without giving a show cause notice to the taxable person and afford him a reasonable opportunity of being heard. Summary assessment Section 48 provides for the summary assessment to protect the interest of revenue when- The proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act; and The proper officer believes that delay in passing an assessment order will adversely affect the interest of revenue. Such order cannot be passed without getting permission from the Additional Commissioner/Joint Commissioner. A tax

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – Dated:- 30-9-2016 – The Union Finance Minister Shri Arun Jaitley said that the Government is working on a target date of 1st April, 2017 for the roll out of the Goods and Services Tax (GST) in the country. He said that till 16th September, 2017, that is one year after the provisions of the Constitution (101st Amendment) Act, 2016 being brought into force, the Constitution empowers the Central Government to levy excise duty on manufacturing; and service tax on the supply of services. The Finance Minister said that similarly the Constitution Amendment Act empowers the State Governments to levy sales tax or Value Added Tax (VAT) on the sale of goods till that time i.e. 16th September, 2016. The Finance Minister

= = = = = = = =

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

= = = = = = = =

. The Council will take decisions on important issues like tax rates, exemption list and threshold limits etc. Thereafter, the Members of Consultative Committee who participated in today s Meeting sought various clarifications with regard to GST Law and gave suggestions for its better implementation. Some of the major suggestions include need for absolute clarity and transparency with regard to where taxes will be collected, assessed and where the appeal will be filed in case of GST regime. The members said that it will be challenging task to tackle complex situation arising-out of implementation of GST law in a federal system. Some of the members suggested there is a need for launching a large scale Awareness Campaign especially for the sm

= = = = = = = =

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

= = = = = = = =

man consumption items as well as cost of living at large. Along with the Union Finance Minister, Shri Arun Jaitley, Shri Santosh Kumar Gangwar, Minister of State for Finance, the Members of the Consultative Committee who participated in the today s Meeting include Shri Baijayanta Jai Panda, Shri Dilip Kumar Mansukhlal Gandhi, Shri Kailkesh Narayan Singh Deo, Shri Prabhatsinh Chauhan, Shri Ram Charitra Nishad, Shri Subhash Chandra Baheria and Shri Suresh Chanabassappa Angadi (all members of Lok Sabha); Shri Anil Desai, Shri Digvijaya Singh, Shri Rajkumar Doot and Shri Satish Chandra Misra (all members of Rajya Sabha) . Among the officers who attended the Consultative Committee Meeting include Shri Ashok Lavasa, Finance Secretary, Shri Shakt

= = = = = = = =

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

= = = = = = = =

2nd GST Council Meeting Dated:- 30-9-2016 GST Council – Minutes – Circulars – GST – Minutes of the 2nd GST Council Meeting (30 September 2016) The second meeting of the GST Council (hereinafter referred to as 'the Council') was held in the Parliament House Annexe, New Delhi on 30 September 2016 under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley. The list of the Hon'ble Members of the GST Council who attended the meeting is at Annexure 1 . The list of officers of the Centre and the States who attended the meeting is at Annexure 2 . 2. In his opening remarks, the Chairperson of the Council welcomed all the members and enumerated the agenda items for the second meeting of the Council. 3. The following three agenda items were taken up for consideration: 1. Approval of the Draft Minutes of the 1st GST Council Meeting along with the Draft Rules for Conduct of Business a.Draft Minutes of the 1st GST Council Meeting b.Draf

= = = = = = = =

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

= = = = = = = =

e Hon'ble Minister from Punjab stated that ITC reversals accounted for an additional revenue of ₹ 4,000 crore in his State. The Secretary to the Council observed that it was not desirable to subsume the amount related to ITC reversal for calculation of compensation as it was a distortion in the taxation system and only five States had such a provision in place. The Chairperson observed that if compensation was to be paid for ITC reversal, the Centre's rate of tax would go up and this would imply that taxpayers of all States would be paying extra to compensate five States. He further observed that as the issue regarding compensation for ITC reversal was not discussed in the first meeting of the Council, it would be inappropriate to insert it at the stage of confirmation of its Minutes. However, it was agreed that this issue could be further examined by a committee of officers. 6. The Hon'ble Minister from Uttar Pradesh stated that more clarity was needed as to what

= = = = = = = =

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

= = = = = = = =

g, there was no agreement to count CST at the rate of 4% for computing compensation. It was agreed that this need not be incorporated in the Minutes of the 1 st Meeting of the Council. 8. The Hon'ble Minister from Jammu and Kashmir stated that in paragraph 37 (ii) of the Minutes, the revenue to be compensated should cover exemptions and duties. The Secretary to the Council stated that these could not be included for compensation as the population of the whole of India should not be expected to bear the burden for exemptions given by different states. The Hon'ble Minister from Assam stated that the formula for compensation under V AT did not include exemptions as part of revenue and the same methodology should be adopted for GST. The Hon'ble Minister from Bihar also opposed the idea of putting exemptions in the compensation formula. The Chairperson reiterated that additional issues being discussed today could not be made part of the Minutes of an earlier meeting. Such is

= = = = = = = =

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

= = = = = = = =

of the committee should cover the entire gamut of activities and functions to be performed from registration, scrutiny, etc. to enforcement. This committee should discuss how information-based enforcement powers should be exercised so that there was no parallel exercise of powers resulting in confusion and possible harassment. 11. The Hon'ble Minister from Tamil Nadu stated that there was no agreement as recorded in paragraph 47 (iii) ( All existing registered service providers irrespective of the value of turnover, for the present, shall continue to be administered by the Central tax administration ). He also expressed his strong reservation in respect of the cap of three years mentioned in paragraph 47. The Hon'ble Minister from Kerala also supported the view of the Hon'ble Minister from Tamil Nadu and stated that the Centre and the States should have concurrent power to administer Service Tax payers having turnover above ₹ 1.5 Crores. He also observed that Stat

= = = = = = = =

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

= = = = = = = =

s and the Centre. Audit was proposed to be limited to 5% of the taxpayers on the basis of risk parameters. The issue decided was that the Centre would take up such audit for suppliers of services. He suggested that this issue should not be reopened. 13. The Chairperson recalled the discussions that took place in the 1st Meeting of the Council. He stated that the compromise arrived at was that in respect of goods, taxpayers with a turnover below ₹ 1.5 crore would continue to be administered by the States, as was the practice currently and for those with turnover above ₹ 1.5 crore, there would be concurrent jurisdiction of the Centre and States. In respect of Service Tax, he had stated that 11 lakh current assessees of Service Tax would continue to be administered by the Centre and this clearly implied that no division was proposed on the basis of ₹ 1.5 crore turnover. He also recalled that it was agreed that new Service Tax registrants would be allocated between the

= = = = = = = =

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

= = = = = = = =

st Meeting of the Council was in a spirit of cooperation. However, this cooperation was limited to the Centre administering the Service Tax assesses whose turnover was below ₹ 1.5 crore and in his understanding, the agreement was that Service Tax assessees with turnover above ₹ 1.5 crore would be administered jointly by the Centre and the States. The Hon'ble Minister from Chhattisgarh stated that in the Empowered Committee, the decision regarding no dual control on small taxpayers was only to protect small traders in goods and it was not meant for services and therefore, it would not be fair to raise the issue of Services at this stage. The Hon'ble Minister from Meghalaya stated that the States should administer taxpayers with turnover below ₹ 1.5 crore and those above ₹ 1.5 crore should be shared between the Centre and the States. He also stated that there was hardly any presence of Central Government officials in .his State. He suggested a time-frame t

= = = = = = = =

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

= = = = = = = =

ent, it should be allowed to handle Service Tax assessees exclusively for the first five years. The Hon'ble Chief Minister of Puducherry also recalled that for Services, it was decided that all 11 lakh existing Service Tax assessees would be administered by the Central Government. The Secretary to the Council brought to the notice of the House that big service providers in sectors such as telecom, banking, information technology, etc. had been representing that they should have a single registration and if that was not possible, they could at least be given the second best comfort of being audited by only the Central administration for initial years. He pointed out that contribution of Services to the Gross Domestic Product (GDP) of the country was 56% and the administrative structure should be such that it does not affect the growth of the Services sector and thus, of the GDP. 16. The Hon'ble Minister from Tamil Nadu stated that transition period should not be for 3 years a

= = = = = = = =

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

= = = = = = = =

9;ble Ministers from Punjab and Gujarat suggested to vertically divide the taxpayers between the Centre and States irrespective of any turnover threshold. The Hon'ble Minister from Assam stated that such an arrangement would create difficulty for small traders. The Hon'ble Ministers from Bihar and Kerala stated that in order to consider this new suggestion, it should be circulated as a separate agenda point. 18. Due to persistent differences, the Council decided to defer the approval of the minutes of the meeting in respect to agenda item 5 of the 1st meeting of the Council. It was suggested and agreed that a committee of officers would examine the issue further and the matter could then be taken up in the next Council meeting. 19. The sub-agenda (b) of the agenda item 1, i.e. Draft Rules of Procedures and Conduct of Business in the GST Council with the revisions suggested in the last meeting of the Council was taken up and the Council approved the revised version unanimo

= = = = = = = =

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

= = = = = = = =

view that as the compensation was for 5 years, the average growth rate of 5 years or the best 3 out of 5 years should be taken to ascertain the growth rate'. c. The last line of paragraph 22 to be replaced by 'The Hon'ble Minister from Odisha suggested that the best 3 out of 5 years be taken to ascertain growth rate and compensation payment be made monthly and adjusted at the end of the year on the basis of CAG-audited figures and also that the base year could be 2015-16'. (ii) In relation to Agenda Item no. 5 of the first meeting, namely Provision for cross-empowerment to ensure single interface under GST , paragraph 39 to 46 where the discussions have been recorded was approved. In paragraph 47, the last sentence of the main body of the paragraph shall be replace by the following sentence: Thereafter, the following modalities for single interface were discussed but discussions remained inconclusive. (iii) Adoption of modified Draft Rules of Procedures and

= = = = = = = =

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

= = = = = = = =

er of Arunachal Pradesh expressed some concern in regard to the draft rules on registration. He mentioned that registration under GST was proposed to be PAN-based which would be difficult to comply with in his State as no Income Tax was payable in his State (as also in Nagaland). He further mentioned that in GST, in B2C (Business to Consumer) transactions, taxes would flow to the consuming states. However, as his State did not have big distributors or high-end retailers, people from his State bought goods from Assam, West Bengal, etc. and a mechanism was required to be devised to ensure that taxes paid for such purchases flowed to Arunachal, Pradesh. The Chairperson observed that this issue could be taken up for clarification in the next meeting of the Council. 23. The Members expressed their approval of the draft Rules relating to Registration, Payment, Return, Refund and Invoice, Debit/Credit Notes. The Secretary to the Council suggested that the Draft Rules may be approved with a

= = = = = = = =

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

= = = = = = = =

ermit flow of tax to the destination state. Therefore, a decision would need to be arrived at regarding the treatment of such tax incentive schemes under the GST regime. He observed that one option could be to 'grandfather' such schemes and provide for a budgetary apportionment in the State and the Central budgets for reimbursing the tax paid to those units which enjoyed tax exemption up to a specified period. However, while' grandfathering' any such scheme, it would need to be kept in mind that unlike VAT and the CST which were origin-based taxes, GST was a destination-based tax and an unconditional reimbursement scheme could lead to double outflow for the origin-state – one by way of transfer of tax to the destination State and the other by way of reimbursement to the supplier. Therefore, the States would need to be careful while devising any reimbursement scheme and care could be taken that such reimbursement was limited for supplies made within the State. 26. The

= = = = = = = =

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

= = = = = = = =

ght wither away. The Chairperson stated that no compensation was to be paid by the Centre to any State for reimbursements relating to tax incentive schemes and that States would need to make their own budgetary provisions for the same. 28. The Hon'ble Minister from Uttarakhand stated that the Government of India had given an area-based exemption for 10 years and that such exemptions were to continue up to 2020. She observed that the Centre must reimburse such units for the Central taxes as jobs of more than one lakh workers were at stake. The Hon'ble Minister from Jammu and Kashmir stated that his State was in a similar situation as Uttarakhand. The Chairperson observed that once incentive schemes were withdrawn, the taxes paid would be accounted for in the Consolidated Fund of India and 42% of the amount would be devolved to the States. The Centre, therefore, could be expected to only reimburse the units out ofthe remaining 58% of the fund which was not part of the devoluti

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – CBEC releases draft Rules and Forms for GST refund and returns – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

CBEC releases draft Rules and Forms for GST refund and returns – Goods and Services Tax – GST – Dated:- 27-9-2016 – CBEC releases draft Rules and Forms for GST refund and returns Draft Return Rules Dr

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – CBEC releases Draft Rules and Formats – Draft GST Registration Rules, GST Payment Rules and GST Invoice Rules with formats – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Ranjan Mehta – Dated:- 27-9-2016 Last Replied Date:- 30-9-2016 – In my previous article I tried to throw light on the concept of supply u/s 3 of Model GST Law . We discussed section 3 there and left the Schedule I & II, which contain further provisions in relation to Supply. We will discuss Schedule I here in this article. Although Schedule I contains only 5 clauses but it has created a havoc in the minds of Tax practitioners, who have gone through it. These provisions are Draconian and against the interest of General Public and will cause a lot of confusion in the mind of people as well as tax practitioners. These provisions are such that they can entitle any transaction to be covered under ambit of GST. We explain here how. What happens in case where there is no consideration received or receivable against the Supply made? Sec 3(1)(c) of Model GST law says that the Supply specified in schedule I shall be included in supply irrespective of fac

= = = = = = = =

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

= = = = = = = =

ts to a private or non-business use. 3. Services put to a private or non-business use. 4. Assets retained after deregistration. 5. Supply of goods and / or services by a taxable person to another taxable or nontaxable person in the course or furtherance of business. Provided that the supply of goods by a registered taxable person to a job-worker in terms of section 43A shall not be treated as supply of goods. Permanent transfer/disposal of business assets : Earlier also there were provisions in VAT Laws for such transfers and the dealers were liable to pay VAT on sale of such assets but earlier it was taxable only on the basis of transaction value. As per this clause even if there is no consideration is received but assets are permanently transferred out of business then they will be covered under GST and the value shall be taken as per Valuation rules. This will give revenue authorities opportunity to question every sale of asset. Temporary application of business assets to a private

= = = = = = = =

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

= = = = = = = =

ional cook provided his services on a Sunday to some school for judging a Cooking competition without any consideration. Now the authorities can say that even since no business same is a services under this clause hence a supply under GST. Assets retained after deregistration: At the event of deregistration total value of assets retained shall be deemed to be supply so that the Govt. can take back the credit allowed. Supply of goods and / or services by a taxable person to another taxable or nontaxable person in the course or furtherance of business: This is the most vicious provision in this schedule. Every transaction which is not covered anywhere will be covered. It has following ingredients. No Consideration Supply by a taxable person To any other person (be it taxable or non taxable) In the course or furtherance of business. Thus, this means if any supply by a taxable person to any other person and without consideration is a supply under GST. The experts say that Stock transfers w

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 27-9-2016 Last Replied Date:- 3-10-2016 – Consequent upon Constitution of GST Council (GSTC) in terms of article 279A of Constitution of India and Section 12 of 101st Constitutional Amendment Act, 2016 coming into force w.e.f. 12.09.2016, the first meeting of newly constituted GSTC was held on 22-23 September, 2016 under the Chairmanship of Union Finance Minister. The GSTC has acted proactively and fast on taking forward the initiatives to introduce GST in country as early as on 1st April 2017. As it is, it appears that things are in place and major decisions concerning GST may be taken as anticipated to ensure that GST see the light of the day on 1st April 2017, barring unf

= = = = = = = =

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

= = = = = = = =

1.1 million service taxpayers) and new GST assessees with annual turnover up to ₹ 1.5 crore will be shared with state authorities after due training . Agreement to subsume all cesses into the new tax. Adopted a cross-empowerment model for tax administration under which tax administrators will use a formula to decide which assessee they will audit or register. The taxpayer will then have to interact with one authority only- either Central or State to avoid dual control. GSTC to work on a compensation law and compensation formula; Base year of compensation to states to be 2015-16. Only five per cent of the cases would be audited under the GST regime. The compounding tax threshold for traders has been set at ₹ 50 lakh. Those with a

= = = = = = = =

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

= = = = = = = =

CBEC releases Draft Rules and Formats – Draft GST Registration Rules, GST Payment Rules and GST Invoice Rules with formats – Goods and Services Tax – GST – Dated:- 26-9-2016 – CBEC releases Draft Rule

= = = = = = = =

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

= = = = = = = =

PRESENTATION PLAN – GOODS & SERVICES TAX (GST) – Goods and Services Tax – GST – Dated:- 26-9-2016 News – Press release

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – atul rathod – Dated:- 24-9-2016 Last Replied Date:- 26-9-2016 – Background:- As we all know Model law of GST has come in public domain and bill has been passed in Rajya Sabha and expected to get effective from 01.04.2017. The purpose of this article is to give overview on impact of GST on manufacture and Trader due to change in Indirect tax structure. Positive Impact on Manufacture One Tax: In Present structure of GST, there is various kind of taxes such as excise duty, Service tax, VAT, Entry tax, Central Sales Tax etc. But in GST Regime there is only one tax i.e GST however, there will be three parts such CGST, SGST, IGST. This is measure relief for the manufacturer. Rate of tax: In current tax regime the consumer pays approximately 25-26% more than the cost of production due to excise duty (at 12.5%) and value added tax (almost 14.5%) though there hasn t been any indication of a GST rate, but experts suggest between 18% and 22%. Ultimately goods

= = = = = = = =

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

= = = = = = = =

gime of tax there are numerous issues on classification of goods due to separate rates on different goods and exemptions on certain goods. But in regime of GST there shall be minimization of classification issues due to uniform rate and less expected exemptions. Speedy Movement of Goods: In GST Regime of tax structure there will be minimization of trade barriers, such as filing of way bills/entry permits, Compliance under Entry tax will be abolished. There is much compliance in current regime on interstate movements or locally such as way bills, statutory forms etc which lead to slow movements of goods Where as this concept is going to be abolished though check points will still be eligible. CENVAT Credit: In Regime of Present tax, the manufacturer is unable to utilize the credit of Central Sales tax and VAT provided output is charged under Composition Scheme, which becomes the Cost for him. But In Regime of GST, A Manufacturer will be eligible to take Credit of SGST (Earlier VAT) as w

= = = = = = = =

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

= = = = = = = =

eparate authorities for VAT, Service Tax, Central Excise, CST, etc. In GST Regime it is expected that assessment will be done by State authorities for SGST, Central Authorities for CGST, and Interstate authorities for IGST. Electronic Mode for Forms: In current Regime of tax there is very much manual filing of documents such as initial declaration, Numbering of Invoices etc. But in GST Regime there will be less manual filing of documents and more through electronic mode. Further, the communication with department also could be through electronic mode. Compliance:-In GST Regime huge Compliance would be there however, it could be negative impact as well as positive. Negative Impact Time of Supply: In Current Regime of tax the time of duty on manufacture attracts at the time of removal where as in GST Regime it will earliest of the four such as (Date of Issue of Invoice, Date of Payment, Date of Removal, Debit in the books of Receiver). No SSI Exemption: In Current tax structure a manufac

= = = = = = = =

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

= = = = = = = =

gistic Sector etc. Introduction of Reverse Charge on Goods: In Current Regime Of tax structure there was reverse charge on specified services but in case of GST even the reverse charge will be applicable on goods. Post supply Discount: If the Discount has to be given post supply than it must be known to both the parties at the time of supply or pre-supply and the proof of being known is the clause of discount must be there either in contract or agreement or offer etc. Matching Concept of Returns: In Current if the tax has been made the purchaser to supplier then he is eligible to take the Credit it is immaterial whether the same has been credited to Central Government by the Supplier or not. But in GST Regime, the matching concept if Tax Credit will be there, if Credits pertaining to Supplier does not match with Purchaser than it will not be accepted in return unless it is rectified by both the parties. Denial of CENVAT Credit on purchases made from unorganized/unregistered Person: In

= = = = = = = =

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

= = = = = = = =

n. However, net impact is neutral, on either of them needs to pay GST. Composition levy Increased: In Current Regime of taxation the limit under Composition Scheme is ₹ 40 lakhs where as under GST it is increased upto ₹ 50 Lakhs. It is beneficial as ₹ 10 lakhs in turnover is a big thing from trader point of view. But currently it is 1% but in GST Regime it will be minimum of 1%, it could be more than that. Credit of Excise Duty and Service tax: In Current Regime of taxation then a trader is not eligible to take Credit of input service as well as the Excise duty. However, In GST Regime he will be eligible to take all credits and it will make positive impact on trader. No Margin to Disclose: Currently a trader who wants to pass on the CENVAT Credit of excise duty needs to obtain dealer registration and have to disclose the margin. But now this is no more relevant as trader is eligible to take Credit as well as no requirement of Separate dealer registration. No Reversal

= = = = = = = =

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

= = = = = = = =

Current Regime of tax, on being made available the Form C, CST rates charged at the rate of 2% instead of 14.5% which is local tax rate, however in GST Regime interstate will be taxed at standard rate i.e IGST. Goods sent to job work are taxable: In Current GST Regime of tax, the goods sent for job work are not liable to CST on being made available of Form H whereas in Current GST Regime it became taxable. Compliances: Instead of 12 Returns A Trader needs to file 37 returns in year and much more compliances which is similar to manufacturer as explained supera. The author can also be reached at atuljain1926@gmail.com – Reply By Ganeshan Kalyani – The Reply = The assessment part seems to be going to be difficult. The returns shall be filed in form GSTR 1, GSTR2 and so on. The return would have transaction of both SGST, CGST and IGST then how different authority i.e. state authority, central authority and interstate authority shall verify same return again and again ? – Reply By yogesh Pa

= = = = = = = =

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

= = = = = = = =

it not appeared in the returns, like in case of litigation, many assesses paid duty/service tax under protest Amount paid against conditional stay, Pri-Deposit at filling commissioner appeal as well as tribunal appeals, also in case of disputed service, assesses take credit and revert the duty/service tax under protest in the sane month to minimize litigation & Interest liability. How above type credit/balance we have carried forward in records & last returns before implementation of GST Law?? We have take credit in current law.Please Guide in both queries. – Reply By atul rathod – The Reply = Ganeshan Kalyani: Dear Sir,No Provision regardig Scrutiny of Return is given in Model GST Law. In my Article i have mentioned about assessment which will be done by one authority up to certain limit and if turnover of the business cross that limit than it will be done by another authority. As per my view the assessment of Return would be done by only one authoity which would be common for

= = = = = = = =

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

= = = = = = = =

GST threshold fixed at ₹ 20 lakh in GST council s meet, rate to be decided in October – Goods and Services Tax – GST – Dated:- 24-9-2016 – GST threshold fixed at ₹ 20 lakh in GST council's meet, rate to be decided in October Read more at: http://economictimes.indiatimes.com/articleshow/54480851.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst New Delhi, Sep 23 (PTI) In a big step forward on GST implementation, the Centre and states today reached an agreement on keeping traders with annual revenue of up to ₹ 20 lakh out of the new national sales tax regime that will subsume all cesses. While the two sides, at the meeting of the GST Council, agreed on the contentious issues of revenue threshold

= = = = = = = =

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

= = = = = = = =

e government and not both. Broad principles for compensating states for any loss of revenue when the new regime is rolled out from April 1, 2017 were also discussed at the two day meeting of the panel that is headed by Union Finance Minister and includes representatives of all states. On service tax, it was decided that in absence of expertise with states, the Centre will continue to exercise control over all the 11 lakh service tax registered dealers irrespective of their revenue levels, he said. Jaitley said the next meeting on September 30 will finalise the draft rules regarding implementation of exemptions. While 2015-16 will be the base year for calculating revenue compensating to states for any loss of revenue arising from rollout of

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Ankur Jain – Dated:- 23-9-2016 Last Replied Date:- 24-9-2016 – I believe that it would be permissible to claim input credit even when the output is zero rated under GST.However, what is the proposal on input credit when output is exempt from GST, not zero rated? Please advise.The question is in the context of books, which are exempt from indirect taxes under the present tax regimes, namely Service Tax and VAT. There is no clarity as of now whether books wo

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – CS SANJAY MALHOTRA – Dated:- 23-9-2016 Last Replied Date:- 30-12-2016 – Input Tax Credit – An analysis in Goods & Service Tax Goods and Service Tax – One Nation, One Tax would benefit all the stakeholders i.e. Industry, Consumers, Government, Professional, Society, etc on account of Reduction in cost of various commodities as the Input Tax credit is available in the complete chain, which breaks in the present Indirect Tax (Excise/VAT) chain. For e.g. In case of Garments, VAT is leviable on Cotton, Cotton yarn in the manufacturing chain but Fabric is Tax Free as is Goods Declared of Special Importance under Section 14 of Central Sales Tax Act 1956. Cost of Fabric goes up with the Input Tax cost not admissible due to Fabric Being Tax free. As a result of same, cost of Garments also goes by VAT cost (Presently 5% + surcharge applicable in few states). Input Tax Credit in Model GST Law (Section 16 – 18) CENVAT / VAT Credit in the present Indirect T

= = = = = = = =

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

= = = = = = = =

light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol; [(B) any goods used for – (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of service portion in the execution of a works contract or construction service as listed under clause (b) of section 66E of the Act;] [(C) capital goods, except when,- (i) used as parts or components in the manufacture of a final product; or (ii) the value of such capital goods is upto ten thousand rupees per piece;] (D) motor vehicles; (E) any goods, such as food items, goods used in a guesthouse, residential colony, club or a recreation facility and clinical establishment, when such goods are used primarily for personal use or consumption of any employee; and (F) any goods which have no relationship whatsoever with the manufacture of a final product. Explanation. – For t

= = = = = = = =

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

= = = = = = = =

motion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; [but excludes],- [(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for – (a) construction or execution of works contract of a building or a civil structure or a part  thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or] [(B) services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle whic

= = = = = = = =

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

= = = = = = = =

as may be provided under this Act or the Rules made thereunder, used or intended to be used by supplier for making an outward supply in the course of furtherance of business. Rule 2(a) of CCR defines capital goods means:- (A) the following goods, namely:- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading 6805, grinding wheels and the like, and parts thereof falling under 35[heading 6804 and wagons of sub-heading 860692] of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; (vii) [storage tank and] [(viii) motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis,[but including dumpers and tippers]] used- in the factory of the manufacturer of the final products, or [(1A) outsid

= = = = = = = =

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

= = = = = = = =

s falling within Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the Schedule to this Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; (vii) storage tank; and (viii) motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis but including dumpers and tippers used- (1) at the place of business for supply of goods; or (2) outside the place of business for generation of electricity for captive use at theplace of business; or (3) for supply of services, (B) motor vehicle designed for transportation of goods including their chassis registered in the name of the supplier of service, when used for (i) supplying the service of renting of such motor vehicle; or (ii)

= = = = = = = =

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

= = = = = = = =

2016 is self explanatory and also depicts the fact the Input Tax Credit in Model GST Law is linked to Supply as against Manufacture in the present Excise / VAT Act. ELIGIBILITY OF INPUT TAX CREDIT Any person who has taken Registration within 30 days from the date when he becomes liable for registration and has been granted same is eligible to avail the Input Tax Credit of Input lying in stock, WIP & Inputs contained in finished goods on the day when he becomes liable to pay tax. Credit of Input Tax shall be recorded in his Electronic Ledger maintained at GSTIN site. Sec 16(2) The above provisions of Input Tax Credit are admissible to Persons who get themselves voluntarily registered under GST Act. (Persons falling under Sec 19(3)] Persons switching over from Composite Levy (Section 8) to Normal Tax are also eligible to avail Input Tax Credit under GST.- Sec 16(3) TIME LIMIT FOR AVAILING INPUT TAX CREDIT (Sec 16(3A) Taxable person shall avail the credit of Input Tax with a period of

= = = = = = = =

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

= = = = = = = =

t in the present Excise / VAT Laws, CENVAT Credit is not admissible on some of the items as covered under the definition part as listed in table produced above. Similarly, Input Tax Credit is not admissible in respect of goods and supplies as listed out below: Sec 16(9) : Notwithstanding anything contained in sub-section (1), (2), (2A) or (3) input tax credit shall not be available in respect of the following: (a) motor vehicles, except when they are supplied in the usual course of business or are used for providing the following taxable services- (i) transportation of passengers, or (ii) transportation of goods, or (iii) imparting training on motor driving skills; (b) goods and / or services provided in relation to food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as leave or home travel conces

= = = = = = = =

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

= = = = = = = =

in the present Tax Regime i.e. Input Tax Credit shall not be admissible on Capital Goods if the Depreciation has been availed in respect of the Tax component under Income Tax Act 1961. Important aspects to be noted while availing Input Tax Credit – Sec 16(11)] Registered Taxable Person availing Credit of Input Tax shall ensure following: Tax Invoice / Debit Note / Supplementary Invoice or any document as may be prescribed by the Government issued under CGST/SGST/IGST Act shall be available in his possession. Goods / Services must have been received Tax charged by the Supplier in documents prescribed above has ACTUALLY been paid into respective Government treasury in Cash / Utilisation of Input Tax credit. (This is the most challenging and harsh provisions as the receiver of goods should be punished for fault of supplier of goods / services if that person fail to deposit tax / return). GST Council should review the above mechanism and put the supplier of goods / services on penal mode.

= = = = = = = =

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

= = = = = = = =

Tax in respects of Input sent on Job Work (Sec 16A) Input Tax credit is admissible to registered Taxable person if the inputs are sent to job worker for job work and are received back within a period of 180 Days. Credit of Input Tax is even admissible if the inputs are sent directly by job worker from supplier premises to Job worker premises, wherein period of 180 days would count from receipt of material by job worker. Period of 2 years shall be considered for bringing back Capital Goods after job work for availing Input Tax credit. In case of non receipt of Inputs / Capital goods within defined time frame, Input Tax credit has to be paid back with Interest and the same may be reclaimed back upon receipt of goods after period of 180 days / 2 years. Manner of Distribution of Credit by Input Service Distributor (Sec 17) Input Credit of IGST & CGST shall be distributed as IGST if both the ISD and recipient of credit are situated in different states. Input Credit of IGST & CGST s

= = = = = = = =

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

= = = = = = = =

1st GST Council Meeting Dated:- 23-9-2016 GST Council – Minutes – Circulars – GST – Minutes of the 1st GST Council Me e ting (22nd and 23rd September 2016) The first meeting of the GST Council (hereinafter referred to as 'the Council ') was held on 22 nd and 23rd September 2016 under the Chairpersonship of the Hon'ble Union Finance Minister, Shri Arun Jaitley in Vigyan Bhawan, New Delhi. The meeting was attended by the Hon'ble Union Minister of State for Revenue, Shri Santosh Kumar Gangwar, the Hon'ble Chief Minister of Puducherry, Shri V. Narayanasamy, the Hon'ble Deputy Chief Minister of Arunachal Pradesh, Shri Chowna Mein, the Hon'ble Deputy Chief Minister of Delhi, Shri Manish Sisodia and the Hon'ble Ministers from the other States. The meeting was also attended by the officials of the Centre and the States. The list of the Hon'ble Ministers who attended the meeting is at Annexure 1 – The list of officers of the Cen

= = = = = = = =

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

= = = = = = = =

4. Before taking up the agenda points, the Chairperson invited the Members of the Council to make general comments, if any. The following issues were highlighted- (i) The Hon'ble Minister from Kerala expressed that given the good experience with the Empowered Committee of State Finance Ministers during the last sixteen years, the institution of Empowered Committee should continue. After some discussion, it was decided that the decision regarding the continuance or otherwise of the Empowered Committee rested with the Empowered Committee. However, the forum for discussing and deciding all issues relating to GST shall be the Council. (ii) The Hon'ble Minister from Kerala observed that the Rules of Procedures and Conduct of Business in the Council should have a clause that decisions would be arrived at by consensus. The Chairperson observed that consensus was key to a forum where sovereignty is shared. However, we must provide for a possible scenario where voting can be re

= = = = = = = =

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

= = = = = = = =

ir). The Chairperson suggested a broad formulation, subject to legal vetting, namely that in a state where there is a proclamation under Article 356 of the Constitution of India, for the purposes of the Council, the person nominated by the Governor of the State shall exercise the power of a Minister. (iii) Rule 3(2) – The Hon'ble Minister from West Bengal observed that the detailed agenda notes were circulated only two days before the Council meeting, which left little time for their examination in the States. He suggested that the agenda be circulated at least 10-15 days in advance. The Chairperson observed that as there was a tight time-frame for implementation of GST, a 15-day notice along with agenda notes before every meeting could derail the deadline. It was agreed that a meeting notice along with agenda points shall be sent at least 7 days prior to the date of the meeting of the Council and the agenda notes would be sent at least 3 working days prior to the date of the m

= = = = = = = =

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

= = = = = = = =

erson agreed that Rule 4 should be deleted. (vi) Rule 5(2) – Some members observed that Rule 5(2) was too restrictive as a Minister nominated to the Council might not be able to attend a meeting due to some other pre-occupation. The Chairperson observed that the rule could be re-formulated to provide that where the originally nominated Member was unable to attend a Council meeting on account of some reason, another Minister could be nominated to attend a particular meeting of the Council. It was further agreed to amend Rule 5(2) to provide that in the absence of the Member Minister or another nominated Minister from a State, a nominated officer could also attend and speak in the meeting of the Council. However, he would not be allowed to vote. An officer accompanying a Minister could also speak on technical matters, ifrequired. (vii) Rule 6 including its Heading – On the suggestion of the Hon'ble Minister from Mizoram, it was decided that the expression Vice-Chairman be rep

= = = = = = = =

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

= = = = = = = =

ted in the Bhubaneswar Empowered Committee meeting in 2013 and it was now part of the Constitution. This provision compelled the Union and the States to come to a consensus. He also observed that there cannot be a situation where the Union Government gets excluded in decision making relating to the taxation policy of the Union oflndia, which is not desirable. The Hon'ble Minister from Bihar observed that under the leadership of the Chairperson, a healthy convention should be developed of taking decision by consensus. (xi) In respect of Rule 16, the Hon'ble Ministers from Tamil Nadu and Uttar Pradesh suggested that there should be different weightage of votes for States within the two-third weightage of votes given to the States. The Hon'ble Minister from Tamil Nadu stated that States with a population of 20 crores and 1 crore should not be treated equally in terms of votes. It was pointed out that such an approach was followed for Rajya Sabha membership. Some criteria li

= = = = = = = =

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

= = = = = = = =

e decided that all States shall have equal vote within the two-third share. Agenda Item 2: Proposed timetable for the implementation of CST 6. The Secretary to the Council briefed the Members of the Council regarding the proposed timetable for completing various steps in order to implement GST by 1st April 2017. He stated that the Draft IGST, CGST and SGST Laws and Rules, GST Rate Structure and Exemption Lists would have to be recommended by the Council by 22nd November 2016. By December 2016, the CGST and lGST Acts would need to be passed by the Parliament and the SGST Acts by the respective State Legislatures in the Winter Session of 2016. For this purpose, if need be, the Winter Sessions would have to be advanced to December 2016. On the setting up of the Information Technology (IT) Framework, he informed that the target dates for development of backend IT systems of banks, RBI and Central and State accounting authorities was November 2016 and that of CBEC and 9 States who

= = = = = = = =

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

= = = = = = = =

h the IT systems but they would be in a position to pass the legislation only by February 2017. The Hon'ble Minister from Jammu and Kashmir stated that they would be able to pass the law only by January 2017. The Chairperson observed that the States that were going for elections would need to make a special provision for passing their SGST Legislation. He also advised the States to meet the deadline and for this, where needed, a one-day special session of the legislature could be convened. The Hon'ble Minister from Tamil Nadu suggested that implementation of GST should be by 1st September 2017 as it was a challenging task and the officers needed to be deployed properly. He also mentioned that inadequate preparations could harm the taxation system. 8. After discussion, it was agreed that the implementation date for GST would be 1st April 2017. The Chairperson observed that between 22nd September 2016 and 22nd November 2016, a lot of work was required to be done and that offi

= = = = = = = =

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

= = = = = = = =

ders should be kept out of the Composition scheme. EXEMPTION THRESHOLD 10. The Secretary to the Council explained that by raising the exemption limit to ₹ 25 lakhs, 60% of tax-payers would be out of the tax net but the loss of revenue would only be 2%. The Hon'ble Chief Minister of Puducherry stated that an exemption limit of ₹ 25 lakhs for his Union Territory would mean that 12% of traders would go out of the tax net and would result in substantial revenue loss. He suggested that for the small states, the threshold for exemption should be ₹ 10 lakhs. The Hon'ble Deputy Chief Minister of Delhi stated that the exemption limit of ₹ 10 lakhs was too low and that they had a good experience after increasing the threshold limit to ₹ 20 lakhs. The Hon'ble Minister from Kerala observed that the potential revenue loss by increasing the threshold was low but it would keep a large number of traders out of the tax net, which would help administrati

= = = = = = = =

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

= = = = = = = =

ter from Mizoram also supported a threshold limit of ₹ 5 lakhs. The Hon'ble Minister from Assam supported a threshold of ₹ 10 lakhs. 13. Given the difference in opinions, the issue was deferred for reconsideration to the next day. In the meeting of 23rd September 2016, after further discussion, it was agreed that the threshold exemption shall be ₹ 20 lakhs. The Chairperson also observed that taking note of the concerns expressed by the Hon 'ble Chief Minister of Puducherry, this decision would be reviewed after 5 years (during which compensation for any loss of revenue is guaranteed) and a decision regarding any modification to the exemption threshold would be taken thereafter. 14. As regards the Special Category States enumerated in Article 279A of the Constitution, it was decided that the threshold exemption shall be ₹ 10 lakhs. COMPOSITION (OR COMPOUNDING) THRESHOLD 15. The Secretary in his introductory remarks stated that at present, th

= = = = = = = =

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

= = = = = = = =

arrived at, to calculate the compensation, viz- (i) a base year and (ii) the projected growth rate. 18. In the presentation, it was further explained that it would be desirable to take 2015-16 as the base year for making growth projection of Revenue and projected growth rate might be taken as average growth rate of revenue collection in the preceding 3 financial years ending 31st March, 2016, 31st March, 2015 and 31st March, 2014 over the previous year. It was also explained that the projected growth rate shall be calculated on the basis of the figures of revenue collected as audited by the Comptroller and Auditor General of India. 19. The Hon'ble Deputy Chief Minister of Delhi desired to know as to why the year of 2016-17 could not be taken as the base year. It was explained by J.S. (Rev), that the audited figures of the year would become available much later and hence, it might be difficult for States to calculate their budgetary estimates for 2017-18. The Hon'bl

= = = = = = = =

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

= = = = = = = =

la would take into account the impact on revenue of the tax holidays provided by the States. The Hon'ble Minister from Telangana explained that his was a new State and therefore only figures for the year 2016-17 would be available. The Hon'ble Minister from Gujarat expressed the view that the base year should be the best 3 years' average of the last 10 years. The Hon'ble Minister from Kerala was not in agreement with the method of ascertaining the projected growth rate of revenue. He also expressed the view that it should be taken as the best 3 years of the last 10 years. He further pointed out that during VAT compensation, the best 3 of the last 5 years were taken into account to ascertain the growth rate. He also supported the view that the compensation needed to be paid regularly by making a provision for ways and means accommodation in the law. 21. The Hon'ble Minister from Madhya Pradesh reminded that during the implementation of VAT, goi ng backwards by 5 y

= = = = = = = =

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

= = = = = = = =

dated fund of the States. His view was that all taxes which were subsumed should be compensated and there should be no condition of all revenue being audited by the CAG. He also suggested that the payment should be made on a monthly basis. The Hon 'ble Minister from Odisha suggested that the best 3 out of of 5 years be taken to ascertain growth rate and compensation payment be made monthly and adjusted at the end of the year on the basis of CAG-audited figures and also that the base year could be 2015-16. 23. The Hon'ble Minister from Tamil Nadu expressed that compensation be given for all revenue which was getting subsumed in GST. As for ascertaining rate of growth, the best of 3 years out of the preceding 6 years be taken into consideration to account for the floods in Tamil Nadu. He was also of the view that the States should assess their revenue loss by December and convey to the Centre and compensation should be paid on that basis. The projected growth rate should take

= = = = = = = =

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

= = = = = = = =

e Minister from Assam brought to the notice of the Council that last year was an election year in Assam and the then Government did not make much effort to garner revenue and therefore, in the case of Assam, the current year should be taken as the base year and that the VAT formula could be adopted for compensation. 27. The Hon'ble Deputy Chief Minister of Arunachal Pradesh stated that their revenue was growing every year and therefore current year should be taken as the base year and for projecting growth, the preceding 3 years should be taken into consideration. 28. The Hon'ble Chief Minister of Puducherry suggested that year 2015-16 should be taken as the base year and formula as used during VAT transition should be used to calculate compensation. He also brought to the notice of the Council that the definition in Article 366(26B) of State to include a Union Territory with Legislature is not mentioned in Clause 18 of the Constitution (One Hundred and First Amendment) A

= = = = = = = =

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

= = = = = = = =

compensation be paid forthwith. He also suggested some independent mechanisms for the flow of the compensation amount. 30. The Hon'ble Minister from Andhra Pradesh supported the use of VAT methodology and suggested that payments be made periodically preferably along with the devolution amount. He . also desired that the CST compensation be released forthwith. The Hon'ble Minister of Chattisgarh while supporting the idea of using VAT methodology for payment of compensation, desired to know the impact of petroleum items which were outside GST on the calculation of the growth rate. He also suggested that 2016-17 be taken as the base year. 31. The Hon'ble Minister from Haryana brought to the notice of the Council that they had problems similar to that of Punjab as they also had a lot of agricultural produce in the State. The Hon'ble Minister from Telangana brought to the notice of the Council that Telangana would stand to lose ₹ 700 crores of R.D.Cess (Rural Dev

= = = = = = = =

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

= = = = = = = =

ribed in the 14th Finance Commission may be used as the guiding principle for payment of compensation. He expressed that devolution amount to States prior to implementation of GST should be protected. 33. The Chairperson invited the Chief Economic Advisor to share his views on the methodology of compensation. He expressed that any calculation based on the best 3 of the previous 5 years would lead to a situation where going forward, the nominal GDP growth would be substantially lower as compared to revenue growth during the last 3 or 5 years and this would create challenges. He further added that inflation was likely to be below 4% compared to past rates of inflation of 9-10%. He also shared results of his calculation of rate of growth of revenue for the whole country and this came to 12.3%. The Hon'ble Ministers from Jammu and Kashmir and Assam noted that if the revenue of the Central Government fell, the amount devolved to the States would also fall. The Hon'ble Minister fr

= = = = = = = =

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

= = = = = = = =

0% compensation for 5 years. While it was agreed then for best 3 out of 5 years' growth rate, it was linked to diminishing amount of compensation for 3 years, namely 100% for year one, 75% for year two and 50% for year three. Therefore, it might be inappropriate to adopt only part of the formula. 36. The IS. (Rev) clarified that compensation would include all taxes such as CST, Octroi, Purchase Tax, etc which are levied by the State Governments and now proposed to be subsumed in GST including cesses, if any, imposed by the States. The frequency of release could be decided by the Council and could be an interim figure. There was considerable discussion in the Council on various other methods of calculating the compensation figure such as trends of Nominal GDP growth rate, application of buoyancy factor, variation in the GDP estimates, taking taxlGDP ratio as a factor, removing outliers from growth data of 5 years and the need to keep calculations reliable but simple. 37. The C

= = = = = = = =

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

= = = = = = = =

d that the advantage of the last methodology would be that special factors affecting revenue collection of a state like Jammu and Kashmir would be addressed. The Hon'ble Minister from Kerala opposed the last methodology but was agreeable to the suggestion of considering the best 3 growth rates out of the 5 years preceding the base year and excluding the two outliers. The Hon'ble Minister from Tamil Nadu did not favour this proposal. The Hon'ble Minister from West Bengal observed that the general consensus was to go for 6 years and take the best growth rate of 3 years out of them. The Hon'ble Ministers of Assam, Uttar Pradesh and Haryana supported the idea of a secular growth rate and Uttar Pradesh suggested that the secular growth rate be pegged at 14%. The Hon'ble Minister from Tamil Nadu stated that projection of a secular growth rate could punish states whose tax administration collected taxes more efficiently. The Chairperson observed that this issue may continu

= = = = = = = =

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

= = = = = = = =

entation outlining the broad features of the proposed cross-empowerment model. This model essentially provided for a protocol on the basis of which scrutiny of returns of taxpayers and their audit would take place. It was proposed that an overall cap might be agreed upon on the number of interventions (of scrutiny of returns and audit) to be done by the Central and State authorities taken together. Within this cap, on an annual basis, the list of taxpayers to be subjected to detailed scrutiny of returns and audit would be drawn by the Union and State Government officers in each State on the basis of certain risk parameters. Based on these lists, allocation of taxpayers to the Central and State tax administrations would be done on the basis of certain predefined criteria. The consequential actions like raising demand, adjudication, appeal, etc. shall be done by the administration that conducted scrutiny of returns/audit and it would cover both the CGST and the SGST. For enforcement acti

= = = = = = = =

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

= = = = = = = =

ow the turnover threshold of ₹ 1.5 crore were to be administered by State tax authorities, then States would end up administering a disproportionately large number of taxpayers whereas the effort should be to work on a model which would help to optimally utilize the well-trained officers of both the Centre and the States to get the best results. 43. The Hon'ble Deputy Chief Minister of Delhi stated that no policy should be made to accommodate excess officers of a particular administration. He suggested that the Central Government officers could be deputed to the States. He also pointed out that often, the jurisdiction of the Central tax authorities was not co-terminus with the boundaries of a State. He emphasized that in the GST regime, the jurisdiction of the Central tax authorities in a State should be co-terminus with that of the States. The Hon'ble Minister from Tamil Nadu also emphasized the need for structural alignment of the two tax administrations. The Hon&#39

= = = = = = = =

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

= = = = = = = =

on the big taxpayers and the small taxpayers should be left to the administration of the State tax authorities. 45. The Hon'ble Minister from Kerala observed that the proposal being discussed in this meeting had never come up for discussion earlier. He stated that the protocol appeared unworkable and very complicated. It was not clear how the CGST administration would draw the priority list. He also observed that changing the tax jurisdiction of dealers every two years was inefficient. He also suggested that Central Government staff should be deputed to work in States. 46. The Hon'ble Minister from West Bengal stated that the Empowered Committee had earlier unanimously agreed that taxpayers below the threshold of ₹ 1.5 crores would not face dual administration and that this needed to be respected. The State administration dealt with traders and this position should continue in GST. He observed that the Centre's proposal of cross-empowerment was too complex but a

= = = = = = = =

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

= = = = = = = =

nistration, it would be better that for now, the Central tax administration should continue to administer all existing Service Tax registrants. The Centre shall give training to the officers of the State Governments on Service Tax and till such time, the present arrangement shall continue. Thereafter, the following modalities for single interface were discussed but discussion remained inconclusive. I. Traders/manufacturers of goods with a turnover of less than ₹ 1.5 crores shall be under the jurisdiction of the State administration. ii. The traders/manufacturers of goods with a turnover above ₹ 1.5 crores shall be administered by both the Central and State tax administrations on the basis of the cross-empowerment model presented in the meeting which can be suitably modified by a Committee of Central and State Government officials. iii. All existing registered service providers irrespective of the value of turnover, for the present, shall continue to be administered

= = = = = = = =

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

= = = = = = = =

Question 33 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 33 – Q 33. Are there any class of officers who are required to assist CGST/SGST officers? Ans. Under section 65 of MGL, the following officers have been empowered and are required to assist CGST/SGST officers in the execution of MGL. The categories specified in MGL are as follows: i. Police; ii. Customs; iii. Officers of State/Central Government engaged in

= = = = = = = =

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

= = = = = = = =

Question 32 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 32 – Q 32. What are the precautions to be observed while issuing summons? Ans. The following precautions should generally be observed when summoning a person:- (i) A summon should not be issued for appearance where it is not justified. The power to summon can be exercised only when there is an inquiry being undertaken and the attendance of the person is con

= = = = = = = =

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

= = = = = = = =

Question 31 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 31 – Q 31. What are the guidelines for issue of summons? Ans. The Central Board of Excise and Customs (CBEC) in the Department of Revenue, Ministry of Finance has issued guidelines from time to time to ensure that summons provisions are not misused in the field. Some of the important highlights of these guidelines are given below: i. summons are to be issued as a last resort where assesses are not co-operating and this section should not be used for the top management; ii. the language of the summons should not be harsh and legal which causes unnecessary mental stress and embarrassment to the receiver;

= = = = = = = =

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

= = = = = = = =

Question 30 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 30 – Q 30. What can be the consequences of nonappearance to summons? A. The proceeding before the official who has issued summons is deemed to be a judicial proceeding. If a person does not appear on the date when summoned without any reasonable justification, he can be prosecuted under section 174 of the Indian Penal Code (IPC). If he absconds to avoid ser

= = = = = = = =

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

= = = = = = = =

Question 29 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 29 – Q 29. What are the responsibilities of the person so summoned? Ans. A person who is issued summon is legally bound to attend either in person or by an authorized representative and he is bound to state the truth before the officer who has issued the summon upon any subject which is the subject matter of examination and to produce such documents and oth

= = = = = = = =

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

= = = = = = = =

Question 28 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 28 – Q 28. When can the proper officer issue summons under MGL? Ans. Section 63 of MGL gives powers to a duly authorized CGST/SGST officer to call upon a person by issuing a summon to present himself before the officer issuing the summon to either give evidence or produce a document or any other thing in any inquiry which an officer is making. A summons to

= = = = = = = =

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

= = = = = = = =

Question 27 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 27 – Q 27. What are cognizable and non-cognizable offences under MGL? Ans. In section 73 (4) of MGL, it is provided that the offences relating to taxable goods and /or services where the amount of tax evaded exceeds ₹ 2.5 crores, shall be cognizable and non-bailable. Other offences under the act are non-cognizable and bailable. – Statutory Provisions,

= = = = = = = =

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

= = = = = = = =