Goods and Services Tax

Clause 21 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 21 – Power of President to Remove Difficulties 21. (1) If any difficulty arises in giving effect to the provisions of the Constitution as amended by this Act (including any difficulty in relation to the transition from the provisions of the Constitution as they stood immediately before the date of assent of the President t

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MEMO – Draft-Bills-Reports – STATEMENT OF OBJECTS AND REASONS – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – MEMO – MEMORANDUM REGARDING DELEGATED LEGISLATION Clause 12 of the Bill seeks to insert a new article 279A relating to the constitution of a Council to be called the Goods and Services Tax Council. Clause (1) of the proposed new article 279A provides that the President, shall within sixty days from the date of the commencement of the Const

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Clause STATEMENT – Draft-Bills-Reports – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause STATEMENT – STATEMENT OF OBJECTS AND REASONS The Constitution is proposed to be amended to introduce the goods and services tax for conferring concurrent taxing powers on the Union as well as the States including Union territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both. The goods and services tax shall replace a number of indirect taxes being levied by the Union and the State Governments and is intended to remove cascading effect of taxes and provide for a common national market for goods and services. The proposed Central and State goods and services tax will be levied on all transactions involving supply of goods and services, except those which are kept out of the purview of the goods and services tax. 2. The proposed Bill, which seeks further to amend the Co

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ces; (e) levy of an additional tax on supply of goods, not exceeding one per cent. In the course of inter-State trade or commerce to be collected by the Government of India for a period of two years, and assigned to the States from where the supply originates; (f) conferring concurrent power upon Parliament and the State Legislatures to make laws governing goods and services tax; (g) coverage of all goods and services, except alcoholic liquor for human consumption, for the levy of goods and services tax. In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notified on the recommendation of the Goods and Services Tax Council. (h) compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period which may extend to five years; (i) creation of Goods and Services Tax Council to examine issues relating to goods and services tax and

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proposal in the Goods and Services Tax Council shall be determined as under:- WT = WC+WS Where, WT = WC+WS × SF Wherein- WT = Total weighted votes of all members in favour of a proposal. WC = Weighted vote of the Union = i.e., 33.33% if the Union is in favour of the proposal and be taken as "0" if, Union is not in favour of a proposal. WS = Weighted votes of the States in favour of a proposal. SP = Number of States present and voting. WST = Weighted votes of all States present and voting i.e. i.e., 66.67% SF = Number of States voting in favour of a proposal. (j) Clause 20 of the proposed Bill makes transitional provisions to take care of any inconsistency which may arise with respect to any law relating to tax on goods or services or on both in force in any State on the commencement of the provisions of the Constitution as amended by this Act within a period of one year. 3. the Bill seeks to achieve the above objects. NEW DELHI; ARUN JAITLEY The 18th December, 2014 PRES

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Clause 19 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 19 – Compensation to States for loss of revenue on account of introduction of goods and services tax. 19. Parliament may, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for suc

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Clause 18 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 18 – Arrangement for assignment of additional tax on supply of goods to States for two years or such other period recommended by the Council. 18. (1) An additional tax on supply of goods, not exceeding one per cent. in the course of inter-State trade or commerce shall, notwithstanding anything contained in clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, and such tax shall be assigned to the States in the manner provided in sub-section (2).

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Clause 17 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 17 – Amendment of Seventh Schedule. 17. In the Seventh Schedule to the Constitution,- (a) in List I – Union List,- (i) for entry 84, the following entry shall be substituted, namely:- "84. Duties of excise on the following goods manufactured or produced in India, namely:- (a) petroleum crude; (b) high speed diesel; (c

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Clause 16 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 16 – Amendment of Sixth Schedule 16. In the Sixth Schedule to the Constitution, in paragraph 8, in sub-paragraph (3),- (i) in clause (c), the word "and" occurring at the end shall be omitted; (ii) in clause (d), the word "and" shall be inserted at the end; (iii) after clause (d), the following clause sh

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Clause 15 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 15 – Amendment of articl

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Clause 14 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 14 – Amendment of article 366. 14. In article 366 of the Constitution,- (i) after clause (12), the following clause shall be inserted, namely:- (12A) goods and services tax means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption; ; (ii) after clause (26

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Clause 13 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 13 – Amendment of article 286 13. In article 286 of the Constitution,- (i) in clause (1),- (A) for the words "the sale or purchase of goods where such sale or purchase takes place", the words "the supply of goods or of services or both, where such supply takes place" shall be substituted; (B) in sub-cla

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Insertion of new article 279A- Goods and Services Tax Council. – Clause 12 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 12 – Insertion of new article 279A. 12. After article 279 of the Constitution, the following article shall be inserted, namely:- Goods and Services Tax Council. 279A. (1)The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by order, constitute a Council to be called the Goods and Services Tax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:- (a) the Union Finance Minister

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and services that may be subjected to, or exempted from the goods and services tax; (c) model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the principles that govern the place of supply; (d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax; (e) the rates including floor rates with bands of goods and services tax; (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster; (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and (h

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rmine the procedure in the performance of its functions. (9) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely:- (a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and (b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting. (10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of- (a) any vacancy in, or any defect in, the constitution of the Council; or (b)any defect in the appointment

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Amendment of article 271. – Clause 11 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clau

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Clause 10 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 10 – Amendment of article 270. 10. In article 270 of the Contitution,- (i) in clause (1), for the words, figures and letter "articles 268, 268A and 269", the words, figures and letter "articles 268, 269 and 269A" shall be substituted; (ii) after clause (1), the following clause shall be inserted, namely

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Insertion of new article 269A- Levy and collection of goods and services tax in course of inter-State trade or commerce. – Clause 9 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 9 – Insertion of new article 269A. 9. After article 269 of the Constitution, the following article shall be inserted, namely:- Levy and collection of goods and services tax in course of inter-State trade

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Amendment of article 269. – Clause 8 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Omission of article 268A. – Clause 7 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Amendment of article 268. – Clause 6 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Clause 5 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 5 – Amendment of article

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Clause 4 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 4 – Amendment of article

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Amendment of article 248. – Clause 3 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Claus

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Clause 2 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 2 – Insertion of new article 246A. 2. After article 246 of the Constitution, the following article shall be inserted, namely:- Special provision with respect to goods and services tax. "246A. (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every

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Clause 1 – Draft-Bills-Reports – Enabling Goods and Services Tax (GST) – GST – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 [As intorduced] – Clause 1 – THE CONSTITUTION (ONE HUNDRED AND TWENTY SECOND AMENDMENT) Bill, 2014 A BILL further to amend the Constitution of India. BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:- Short title and commencement. 1. (1) This Act may be called the Constitution (One Hundredth Amendment) Act, 20

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Dated:- 4-12-2015 – The Government proposes to impose Goods and Service Tax (GST) on alcohol products except alcoholic liquor for human consumption. It is proposed in Constitution (122nd Amendment) Bill, 2014 that tobacco will be subjected to GST along with the Central Excise Duty. However, the rate of duty to be charged on this product will be decided by the GST Council as proposed in the Article 279A of the Constitution (122nd Amendment) Bill, 2014. After introduction of GST, the VAT imposed

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Dated:- 3-12-2015 – Shri Jayant Sinha, Minister of State for Finance inaugurated the 6th Meeting of the AEOI Group of the Global Forum on Transparency and Exchange of Information for Tax Purposes here today. In his Keynote Address, Shri Sinha emphasised that cooperation amongst countries and sharing of information is the key to unearth illicit money stashed in safe havens. He lauded the work done by the Global Forum and the AEOI Group in fostering a climate of increased cooperation amongst tax jurisdictions, which he said has resulted in dramatic improvements in transparency. Earlier, Shri A.K. Jain, Chairman, Central Board of Direct Taxes (CBDT), delivered the Welcome Address and termed the process of exchange of information as a game cha

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Goods and Services Tax – GST – By: – Subhash Modi – Dated:- 25-11-2015 Last Replied Date:- 30-12-1899 – Mr. Pradeep Jain has written a very informative article titled: PROPOSED REFUND PROCESS UNDER GST – HAPPINESS ON THE WAY TO EXPORTERS. In continuation I wish to add my comments on the issue of refund under GST as follows: However in the proposed GST legislation there is post refund condition that the value of the exported goods ought to be realised in free foreign exchange within the initial or extended time limit prescribed under FEMA,1999 which at present is condition only under the proviso to Section 75 of the Customs Act, 1962 read with the Rule 16A of the Customs, Excise Duties and Service Tax Drawback Rules, 1995 (effective 06-12-1995) qua the customs portion of the drawback and the Foreign Trade Policy qua the relief of input customs duties exemption for manufacture and export of the resultant product. Failure to realise the export value in foreign exchange entails (under the

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s vide Rule 19(2)/CEX Rules, 2002 read with Notification 43/2001-CE(NT) or 44/2001-CE(NT). d) State VAT or CST saved for purchase of goods ultimately exported under CST form H e) Input and final goods duties reliefs or exemptions availed by 100% EOUs, STPI and similar export oriented dispensations. f) Refund of accumulated credit under Rule 5 of the CCR, 2004. In other words such export related reliefs were never and are not still subject to recovery if the value of the relevant export goods is not realised in foreign exchange. Even in case of FEMA, Drawback Rules and the FTP it is provided that though failure to realise payment for export goods in foreign exchange will invite penalisation (under FEMA) or recoveries of drawback granted or duty exemption availed under the FTP such penalisation or recoveries will be waived if evidence is submitted that the credit insurance company (e.g. ECGC) have settled in India a claim against the non-realisation to the Indian exporter in Indian Rupee

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und or allowed to be retained for payment of SGST and CGST or IGST on any further domestic sale. The exported goods will be taxed in the country to which the export has taken place and goods are retained or consumed in that country. Can such goods be taxed again in India extra-territorially by way of recovery of the last point GST refund that was allowed on the occasion of export? Recovery will amount to taxing the goods again as if the goods are still in India and not exported. Goods can be taxed only if the goods are existing and available in India and not when existing and available or already consumed outside India. In the domestic front there is no condition that if the seller in India fails to realise his GST paid goods value from the buyer of his goods in India then he should refund the amount of GST that was paid or the purchaser should refund the amount of credit of GST that he had taken. If the GST is say around 22% then the exporter not only looses the value of goods because

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